BILL NUMBER: AB 1459 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 12, 2014
INTRODUCED BY Committee on Budget (Skinner (Chair), Bloom, Campos,
Chesbro, Dababneh, Daly, Dickinson, Gordon, Jones-Sawyer, Mullin,
Muratsuchi, Nazarian, Rodriguez, Stone, Ting, and Weber)
JANUARY 9, 2014
An act relating to the Budget Act of 2014.
An act to amend Sections 17224, 17250.30, and 81704 of the Education
Code, to amend Sections 6204, 6531, 11270, 11544, 12153, 12168.7,
12224, 12225, 12227, 12228, 12229, 12230, 12231, 12232, 12233, 12236,
12432, 12478, 13300.5, 13332.11, 13332.19, 13963.1, 14740, 14745,
14746, 16429.1, 16731.6, 17090, 17091, 17093, 17094, 17095, 17096,
17097, 17617, 22802, 22910, 22910.5, and 22913 of, to add Section
20035.11 to, to add Article 7 (commencing with Section 12270) to
Chapter 3 of Part 2 of Division 3 of Title 2 of, to add Chapter 10
(commencing with Section 11850) to Part 1 of Division 3 of Title 2
of, to repeal Sections 11548.5, 12234, 12235, and 26915 of, to repeal
Article 3 (commencing with Section 14750), Article 4
(commencing with Section 14755), Article 6 (commencing with Section
14765), and Article 7 (commencing with Section 14769) of Chapter 5 of
Part 5.5 of, and to repeal Chapter 7 (commencing with Section
15849.20) of Part 10b of, Division 3 of Title 2 of, the Government
Code, to amend Sections 50661, 51452, and 53545 of, and to repeal
Sections 50840, 50841, and 50842 of, the Health and Safety Code, to
amend Sections 135, 1771.5, 1771.7, and 1776 of, to add Sections
1725.5, 1771.1, and 1771.4 to, and to repeal and add Sections 1771.3
and 1773.3 of, the Labor Code, to amend Section 179 of the Military
and Veterans Code, to amend Sections 1485.5 and 13835.7 of the Penal
Code, to amend Sections 20133, 20175.2, 20193, 20209.7, 20688.6, and
20919.3 of, and to repeal and add Sections 6823 and 6953 of, the
Public Contract Code, and to repeal and add Sections 100152 and
103396 of the Public Utilities Code, to amend Section 75.70 of, and
to add Section 95.5 to, the Revenue and Taxation Code, to amend
Sections 1112, 1112.5, 1114, 1126, 1127, 1135, and 1585.5
of the Unemployme nt Insurance Code, and to amend Section
2 of Chapter 469 of the Statutes of 2002, relating to state and local
government, and making an appropriation therefor, to take effect
immediately, bill related to the budget.
LEGISLATIVE COUNSEL'S DIGEST
AB 1459, as amended, Committee on Budget. Budget Act of
2014. State and local government.
(1) Existing law requires a school district to be subject to
nonuse payments, except as specified, if the school district acquires
or has acquired a site for school purposes, as determined by the
State Allocation Board, and the school district does not use the site
within 5 years of the date of acquisition for kindergarten or any of
grades 1 to 8, inclusive, or within 7 years of the date of
acquisition for grades 7 to 12, inclusive; or a site at any grade
level that has previously been used but has not been used for school
purposes within the preceding 5 years. Existing law requires the
Executive Officer of the State Allocation Board to compute and
certify to the Controller the amount of the nonuse payments. Existing
law requires the Controller to deduct the total amount of the
payment, as specified, from apportionments made to the school
district from the State School Fund and transfer the amount so
deducted to the State School Site Utilization Fund. Existing law
requires any funds in the State School Site Utilization Fund,
including interest, that are not subject to return to a school
district, as specified, to revert to the State School Deferred
Maintenance Fund.
This bill would instead require any funds in the State School Site
Utilization Fund, including interest, that are not subject to return
to a school district, as specified, to be allocated, upon
appropriation by the Legislature, for purposes of administering the
Leroy F. Greene School Facilities Act of 1998. The bill would require
any unencumbered funds in the State School Deferred Maintenance Fund
on July 1, 2014, to be transferred to the State School Site
Utilization Fund.
(2) Existing law, with exceptions, requires all workers employed
on a public works project, as specified, to be paid the general
prevailing wage rate, as determined by the Director of Department of
the Industrial Relations. The department is required to monitor and
enforce compliance with all applicable prevailing wage requirements
for any public works project paid for in whole or in part out of
public funds, as specified. The reasonable and directly related costs
of monitoring and enforcing compliance with the applicable
prevailing wage requirements on a public works project incurred by
the department are payable by the awarding body of the public works
project, except as specified, as a cost of construction. The moneys
are deposited into the State Public Works Enforcement Fund, a
continuously appropriated fund, to be used in the department's
monitoring and enforcement duties.
This bill would revise and recast these provisions to, among other
things, delete the requirement that the awarding body pay the
department's costs for monitoring and enforcing compliance with
prevailing wage requirements as a cost of construction, and would
instead require a contractor to be registered and qualified by the
department in order to bid on, be listed in a bid proposal for, or
engage in the performance of any contract for a public work.
Beginning July 1, 2014, a contractor or subcontractor would be
required to register with the department, pay an initial
nonrefundable registration fee of $300, pay an annual renewal fee
each July 1 thereafter, and as part of the registration process,
provide specified information to establish the contractor's
eligibility to be registered. The bill would except from the
application of these provisions contracts determined to be for public
work only after the contract has been awarded or the bid has been
awarded, except as specified. The bill would require the department
to maintain a list of registered contractors on its Internet Web
site.
The fees would be deposited into the State Public Works
Enforcement Fund, which would no longer be continuously appropriated,
and would be used only for the reasonable costs of administering the
registration and qualification of contractors, the costs and
obligations associated with administration and enforcement
requirements with regard to the prevailing wage provisions, and
public works projects monitoring and enforcement duties of the Labor
Commissioner. The bill would provide for an adjustment of renewal
fees based on the balance of the fund, as specified. These provisions
would apply to any bid proposal submitted on or after March 1, 2015,
and any contract for public work entered into on or after April 1,
2015. The bill also would provide for notice, record keeping, and
reporting requirements, as specified.
This bill would authorize the Director of Finance, with the
concurrence of the Secretary of the Labor Workforce and Development
Agency, to approve a short-term loan each fiscal year from the Labor
and Workforce Development Fund to the State Public Works Enforcement
Fund, as provided.
This bill would also make conforming changes and delete obsolete
provisions with regard to specified awarding body compliance programs
and specified awarding body collective bargaining agreements.
(3) The Public Employees' Retirement Law (PERL) prescribes a
comprehensive set of rights and duties for members of the Public
Employees' Retirement System (PERS) and provides those members a
defined benefit based upon age, service credit, and final
compensation. PERL provides various definitions of final compensation
based upon when PERS members are first employed and member
classifications. Existing law, the California Public Employees'
Pension Reform Act of 2013 (PEPRA), establishes various limits on
retirement benefits generally applicable to a public employee
retirement system in the state, with specified exceptions. PEPRA
defines final compensation for members of public employee retirement
systems hired after January 1, 2013, as specified.
This bill would provide for the phased application of specified
salary increases to supervisors and managers of State Bargaining Unit
9 and State Bargaining Unit 10, effective July 1, 2014, for the
purposes of defining final compensation and calculating pensionable
compensation or compensation earnable in relation to pensions and
benefits. The bill would require these supervisors and managers to
pay employee retirement contributions on the full amount of the
salary increase provided pursuant to the pay letter and would
prohibit a refund of the contributions unless a supervisor or manager
elects a full refund of retirement contributions and ceases to be a
member of the retirement system. The bill would require that any
increased costs of administration of these provisions would be paid
by the employers. The bill would prescribe duties for the Department
of Human Resources and the Controller in connection with implementing
and administration of these provisions.
(4) Existing law requires the Secretary of State to appoint a
Keeper of the Archives who is responsible for the preservation and
indexing of material deposited in the State Archives.
This bill would change the title of that position to Chief of
Archives.
Existing law requires the Department of General Services to manage
state records.
This bill would instead require the Secretary of State to manage
state records and the Department of General Services to store state
records, as specified.
Existing law authorizes the Workers' Compensation Appeals Board,
with the approval of the Department of Finance, to dispose of
specified files the board maintains.
This bill would instead require the board to obtain the approval
of the Secretary of State.
This bill would also make technical, nonsubstantive, and
conforming changes to these provisions.
(5) Existing law creates the Department of Technology Services
Revolving Fund within the State Treasury to receive all revenues from
the sale of technology or specified technology services, for other
services rendered by the Department of Technology, and all other
moneys properly credited to the Department of Technology and to be
used, upon appropriation by the Legislature, for specified purposes
with respect to the administration of the Department of Technology.
Existing law authorizes the Department of Technology to collect
payments and require monthly payments from public agencies that have
requested services for the services provided.
This bill would instead authorize the Department of Technology to
collect payments and require monthly payments from public agencies
for services provided.
(6) Existing law, until January 1, 2015, creates within the
Government Operations Agency the Department of Technology which is
supervised by the Director of Technology. Existing law authorizes the
Director of Technology and the Department of Technology to exercise
various powers in creating and managing the information technology
policy of the state among other things.
This bill would extend the operation of these provisions
indefinitely.
(7) Existing law requires the Department of Finance to certify
annually to the Controller the amount determined to be the fair share
of administrative costs due and payable from each state agency and
to certify to the Controller any amount redetermined to be the fair
share of administrative costs due and payable from a state agency.
Existing law requires the Controller to notify a state agency of that
amount, and, unless the state agency requests that those payments be
deferred, to transfer that amount from specified funds to the
Central Service Cost Recovery Fund or the General Fund, as specified.
Existing law defines "administrative costs" as the amounts expended
by various specified state entities for supervision or administration
of the state government or for services to the various state
agencies.
Within that definition, this bill would make technical changes by
updating the names of various states entities and would also make a
conforming change.
(8) Existing law requires the Department of Finance, the
Controller, the Treasurer, and the Department of General Services to
collaboratively develop, implement, utilize, and maintain the
Financial Information System for California, also known as FISCal, to
optimize the financial business management of the state. Existing
law establishes the FISCal Internal Services Fund, the FISCal Support
Fund, the FISCal Debt Service Fund, and the FISCal System
Development Fund in the State Treasury, and provides that funds in
the FISCal Internal Services Fund and a specified subaccount are
continuously appropriated. Existing law authorizes the State Public
Works Board to issue bonds, notes, or certificates to finance and to
refinance the costs of the FISCal system and authorizes loans from
the General Fund to pay for the costs of the FISCal system. Existing
law authorized the FISCal Project Office in the Department of Finance
to establish rates and a payment schedule for state departments and
agencies to use the FISCal system.
This bill would repeal these provisions and establish instead
revised and modified provisions continuing the existence of the
FISCal system pursuant to the Financial Information System for
California (FISCal) Act. The act would, among other things, require
the Department of Finance, the Controller, the Treasurer, and the
Department of General Services to collaboratively develop, implement,
utilize, and maintain the FISCal system to be used upon full
implementation, by all state departments and agencies, as defined.
The act would require, throughout the development of the FISCal
system, the California State Auditor's Office to independently
monitor the FISCal system as the California State Auditor deems
appropriate in accordance with certain factors.
The act would continue the existence of the FISCal Internal
Services Fund and create the FISCal Consolidated Payment Fund for
consolidated payments to payees of moneys otherwise appropriated to
those payees from the State Treasury. The act would require the
FISCal project office, subject to the approval of the Department of
Finance, to establish and assess fees and a payment schedule for
state departments and agencies to use or interface with the FISCal
system. The act would further require the office and the FISCal
Service Center to obtain fingerprint images and associated
information from any employee, prospective employee, contractor,
subcontractor, volunteer, vendor, and partner agency employee
assigned to the office whose duties include, or would include, having
access to confidential or sensitive information or data on the
network or computing infrastructure. The act would authorize
individuals, based on the results of their background check performed
through the fingerprint identification, to be rejected from
employment, as specified.
The act would establish the FISCal Service Center to incrementally
assume responsibility of the FISCal system functionality, as
portions of the FISCal system are implemented and accepted, and to,
upon full implementation and final acceptance of the FISCal system,
perform all maintenance and operation of the FISCal system.
Existing law authorizes the Controller, if a warrant is lost or
destroyed before it is paid by the Treasurer, to issue of a duplicate
warrant under specified conditions and subject to certain
limitations.
This bill would replace the term "duplicate" with "replacement"
and make other nonsubstantive conforming changes.
(9) Existing law authorizes, until June 30, 2014, the Controller
to procure, modify, and implement a new human resource management
system that meets the needs of a modern state government, known as
the 21st Century Project.
This bill would extend that authorization for one more year, until
June 30, 2015.
(10) Existing law, except as specified, prohibits any state agency
from expending funds appropriated for capital outlay projects or for
design-build projects until the Department of Finance and the State
Public Works Board have approved preliminary plans for a capital
outlay project, or concept drawings and performance criteria for a
design-build project. Existing law authorizes the board to augment a
major capital outlay project or a design-build project in an amount
of up to 20% of the total appropriation for that project, including a
reasonable construction reserve within the project construction
fund. Existing law authorizes the board to use the reserve amount to
augment a capital outlay project or design-build project, when and if
necessary, after the lease revenue bonds are sold to ensure
completion of the project. Existing law requires, upon completion of
a capital outlay project or design-build project, that any amount
remaining in the construction reserve fund be used to offset rental
payments.
This bill would delete that offset requirement for both capital
outlay projects and design-build projects.
(11) Existing law establishes the Local Agency Investment Fund, a
trust fund in the custody of the Treasurer, in which local
governments and other specified governmental entities, with the
required consent, may deposit for investment moneys in their
treasuries that are not required for immediate needs. Existing law
requires, immediately at the conclusion of each calendar quarter,
that all interest earned and other increment derived from investments
be distributed by the Controller to the contributing governmental
units or entities, as specified, in amounts directly proportionate to
the respective amounts deposited in the fund and the length of time
the amounts remained therein. Existing law requires, however, that an
amount equal to the reasonable costs incurred in administering the
fund, not to exceed a maximum of 5% of the earnings of the fund or
the amount appropriated in the annual Budget Act for this function,
be deducted from the earnings prior to distribution and be credited
as reimbursements to the state agencies incurring costs in
administering the fund.
This bill would, if the 13-week Daily Treasury Bill Rate, as
published as of the last day of the state's fiscal year, is below 1%,
increase the amount of reasonable costs to be so deducted from the
earnings to a maximum of 8% of the earnings of this fund for the
subsequent fiscal year, as specified.
(12) The State General Obligation Bond Law generally provides for
a procedure that may be adopted by other acts, with any necessary
modifications, in authorizing the issuance and sale of state general
obligation bonds and providing for the repayment of those bonds.
Existing law authorizes the financing committee created by the bond
act to issue bonds in the form of commercial paper notes. Under
existing law, an amount to pay interest payable on maturing
commercial paper notes and other costs associated with the commercial
paper is continuously appropriated from the General Fund.
This bill would specify that the above-described costs associated
with the commercial paper include any fees, costs, indemnities, and
other similar expenses incurred under or in connection with
agreements to purchase commercial paper notes. The bill would limit
the specified costs to an annual amount that does not exceed,
depending upon the type of cost, 3% of the maximum principle amount
of commercial paper notes that could be purchased and outstanding at
any one time pursuant to an agreement or 0.25% of the highest sum of
the maximum principle amount of commercial paper notes authorized by
certain resolutions.
(13) Existing law, the Public Employees' Medical and Hospital Care
Act (PEMHCA), which is administered by the Board of Administration
of the Public Employees' Retirement System (board), authorizes the
board to contract for health benefit plans for employees and
annuitants, as defined, which may include employees and annuitants of
contracting agencies. Contributions and premiums paid under PEMHCA
are deposited in the Public Employees' Health Care Fund and the
Public Employees' Contingency Reserve Fund, both of which are
continuously appropriated. Existing law requires the state,
contracting agencies, employees, and annuitants to contribute to the
cost of providing the benefit coverage under the applicable approved
health benefit plans. Existing law requires the Controller to
identify and remit the state's contributions for employees and
annuitant monthly to the Public Employees' Health Care Fund or to the
carriers, as defined, together with amounts authorized by the
employees and annuitants to be deducted from their salaries or
retirement allowances for payment of their contributions. Existing
law requires the contributions of employees and annuitants of
contracting agencies and the contributions of contracting agency
employers to be identified and remitted monthly to the carriers by
warrant upon claims filed by the board.
This bill would create a continuously appropriated account in the
Public Employees' Contingency Reserve Fund for the deposit of
contributions by the state, employees, and annuitants for the payment
of premiums or other charges to carriers or the Public Employees'
Health Care Fund. By providing for deposit of new moneys into
continuously appropriated funds, this bill would make an
appropriation. The bill would require the Controller to remit
contributions of the state, contracting agencies, employees, and
annuitants currently required to be directed to the Public Employees'
Health Care Fund or to the carriers to instead remit those moneys to
the Public Employees' Contingency Reserve Fund. The bill would make
technical and conforming changes.
(14) Existing law authorizes the Orange County Board of
Supervisors to elect, for a period of up to 2 years, that any
requirement that an audit be performed by the county auditor may also
be performed by a county employee or officer who meets specified
qualifications.
This bill would repeal this authorization.
(15) Existing law creates the Housing Rehabilitation Loan Fund and
continuously appropriates moneys in the fund for, among other
purposes, making specified deferred payment housing rehabilitation
loans.
Existing law creates the California Housing Trust Fund and
continuously appropriates moneys deposited in the fund for the
purposes of investment of those moneys. Existing law authorizes, upon
appropriation by the Legislature, all interest or other increment
resulting from the investment of moneys in the fund to be used for
housing programs that serve lower and very low income households, as
specified.
This bill would, effective July 1, 2014, abolish the California
Housing Trust Fund and require any remaining balance, assets,
liabilities, and encumberances to be transferred to and become part
of the Housing Rehabilitation Loan Fund. The bill would continuously
appropriate all transferred amounts to the Department of Housing and
Community Development for the purpose of satisfying any liabilities
and encumbrances and for the purposes of the Housing Rehabilitation
Loan Fund. The bill would repeal the continuous appropriation of the
moneys in the California Housing Trust Fund for investment purposes
and would repeal authorization for the moneys in the fund to be used
for housing programs.
Existing law establishes the Homebuyer Down Payment Assistance
Program and the Rental Assistance Program, which are administered by
the California Housing Finance Agency pursuant to a contract with the
Department of General Services, to provide assistance in the amount
of the applicable school facility fee for affordable housing
developments. Existing law establishes the School Facilities Fee
Assistance Fund, which is continuously appropriated to the Department
of General Services for the purposes of those programs.
This bill would, effective July 1, 2014, abolish the School
Facilities Fee Assistance Fund and transfer any remaining balance,
assets, liabilities, and encumberances in the fund as of that date to
the Housing Rehabilitation Loan Fund. The bill would provide that
transferred amounts are continuously appropriated to the Department
of Housing and Community Development for the purpose of satisfying
any liabilities, encumbrances, and purposes related to the abolished
fund.
(16) The Housing and Emergency Shelter Trust Fund Act of 2006,
adopted and approved by the voters at the November 7, 2006, statewide
general election, authorized the issuance of bonds in the amount of
$2,850,000,000 pursuant to the State General Obligation Bond Law.
Under the act, $135,000,000 is transferred to the Joe Serna, Jr.
Farmworker Housing Grant Fund to be expended for the programs
authorized by the Joe Serna, Jr. Farmworker Housing Grant Program
which includes grants, loans, or both, to local public entities,
nonprofit corporations, limited liability companies, and limited
partnerships, for the construction or rehabilitation of housing for
agricultural employees and their families, subject to specified
requirements.
This bill would add the Department of Housing and Community
Development as an eligible recipient for this grant program to
reconstruct and rehabilitate migrant centers that are in need of
significant repairs or rehabilitation to ensure the health and safety
of residents. This bill would exempt the Department of Housing and
Community Development from the recipient
requirements specified by the Joe Serna, Jr.
Farmworker Housing Grant Program. This bill, to the extent no other
funding sources are available, would permit the Department of Housing
and Community Development to directly expend up to $11,000,000 of
the transferred moneys to reconstruct and rehabilitate migrant
centers.
(17) Existing law requires the Adjutant General to establish a
California State Military Museum and Resource Center and to enter
into an operating agreement with the California State Military Museum
Foundation to conduct the day-to-day operations of the museum, as
specified. Existing law appropriates $100,000 for each fiscal year
from the General Fund to the California State Military Museum for the
establishment and operation of the museum and resource center.
This bill would instead appropriate that amount to the Military
Department for the establishment and operation of the California
State Military Museum and Resource Center. This bill would remove the
requirement that the Adjutant General enter into an operating
agreement with the California State Military Museum Foundation and
would instead authorize the Adjutant General to enter into operating
agreements with nonprofit historical foundations, military museums,
historical societies or other entities to conduct museum activities
pursuant to the rules and regulations promulgated hereunder.
Existing law requires the museum to consist of specified
facilities.
This bill would instead authorize the museum to consist of those
facilities.
Existing law requires the Board of Directors of the California
State Military Museum Foundation to include the Adjutant General, or
the Assistant Adjutant General, or any Deputy Adjutant General
designated by the Adjutant General, as an ex officio voting member of
the board.
This bill would remove the membership requirements of the board of
directors.
Existing law requires the California State Military Museum
Foundation to perform specified duties and grants the foundation the
authorization to make specified determinations or engage in specified
activities related to the museum.
This bill would instead require the Military Department to perform
those duties and authorize the Military Department or an entity that
enters into an operating agreement with the department to make those
determinations or engage in those specified activities related to
the museum.
(18) Existing law authorizes every person who is unlawfully
imprisoned or restrained of his or her liberty to prosecute a writ of
habeas corpus to inquire into the cause of that imprisonment or
restraint, and provides for the release of that person if no legal
cause is shown for his or her imprisonment or restraint. Existing law
provides that if the district attorney or Attorney General
stipulates to or does not contest the factual allegations underlying
one or more of the grounds for granting a writ of habeas corpus or a
motion to vacate a judgment, the facts underlying the basis for the
court's ruling or order shall be binding on the Attorney General, the
factfinder, and the California Victim Compensation and Government
Claims Board. Existing law also provides that the express factual
findings made by the court in considering a petition for habeas
corpus, a motion to vacate judgment on the basis of newly discovered
evidence relating to misconduct by a government official, as
specified, or an application for a certificate of factual innocence,
is binding on the Attorney General, the factfinder, and the
California Victim Compensation and Government Claims Board.
This bill would provide that a court, for purposes of those
provisions governing binding factual allegations and express factual
findings, is defined as a state or federal court.
(19) Existing law establishes in the State Treasury the
Victim-Witness Assistance Fund, to be administered by the Office of
Emergency Services. Existing law requires the moneys in the fund to
be made available through the Office of Emergency Services to any
public or private nonprofit agency for the assistance of victims and
witnesses and for the support of specified victim counseling centers.
This bill would additionally authorize the moneys in the fund to
be used for any other purpose that supports victims.
(20) The California Victim Compensation and Government Claims
Board administers a program to assist state residents to obtain
compensation for their pecuniary losses suffered as a direct result
of criminal acts. Payment is made under these provisions from the
Restitution Fund, which is continuously appropriated to the board for
these purposes. Existing law authorizes the board, as specified, to
administer a program to award, upon appropriation by the Legislature,
up to $2,000,000 in grants to trauma recovery centers for up to a
maximum period of 3 years, funded from the Restitution Fund.
This bill would instead state the intent of the Legislature to
annually appropriate $2 million from the Restitution Fund.
(21) Existing property tax law requires the county auditor to
allocate and pay certain property tax revenues to designated local
jurisdictions within the county in accordance with specified
formulas, including allocating and paying remaining revenues to all
elementary, high school, and unified school districts within the
county in proportion to each school district's average daily
attendance, as certified by the Superintendent of Public Instruction
for the purposes of the advance apportionment of state aid in the
then current fiscal year. That law requires the average daily
attendance of certain school districts to be deemed to be zero.
This bill would require the county auditor, if the average daily
attendance of all elementary, high school, and unified school
districts within the county is deemed to be zero, to reallocate the
school district revenues to other designated local jurisdictions in
proportion to each entity's percentage of revenues in comparison to
the aggregate total of revenues.
By imposing new duties in the annual allocation of ad valorem
property tax revenues, this bill would impose a state-mandated local
program.
(22) Existing law established, until the end of the 2006-07 fiscal
year, the State-County Property Tax Administration Grant Program
under which a county that enacted a specified resolution and met
certain conditions was authorized to receive from the state a grant,
if funds were appropriated for this purpose, of a specified amount of
money for property tax administration, as specified.
This bill would, for the 2014-15 fiscal year to the 2016-17 fiscal
year, establish the State-County Assessors' Partnership Agreement
Program, to be administered by the Department of Finance, under which
counties selected by the Department of Finance, as specified, would
receive funding for certain property tax administration purposes.
Funding for the program would be subject to appropriation in the
annual budget, and would require the program to be inoperative in any
fiscal year in which an appropriation is not provided. This bill
would require county assessors' offices that elect to participate in
the program to transmit a resolution and an application, as
specified, to the Department of Finance, and would require each
participating county to annually match the program funds apportioned
to its county assessor's office. This bill would also require each
participating county assessor's office to report specified
information to the Department of Finance while the program is
operative. This bill would require the Department of Finance to
submit a report that includes specified information for each fiscal
year that the program was in operation to the Joint Legislative
Budget Committee.
(23) Existing law requires every employer, with specified
exceptions, to pay contributions to the Unemployment Fund at
specified rates to fund the payment of unemployment compensation
benefits to eligible unemployed individuals and requires those
employers to submit specified reports regarding those contributions.
Existing law imposes a penalty upon employers who, without good
cause, fail to pay contributions, fail to remit payments by
electronic funds transfer, fail to file specified returns and
reports, where the Director of Employment Development is not
satisfied with the return or report, and where an assessment becomes
delinquent. The funds are deposited into the Employment Development
Department Contingent Fund, a continuously appropriated fund.
This bill would, on and after July 1, 2014, increase the penalty
amounts from 10% to 15%, where applicable, and from $10 to $20, where
applicable. By increasing the amount of funds deposited into a
continuously appropriated fund, this bill would make an
appropriation.
(24) The Personal Income Tax Law imposes a tax on the income of
California residents and on the income that nonresidents derive
within California. Existing law requires the Employment Development
Department to administer the reporting, collection, and enforcement
of personal income tax wage withholding and deposits any penalties
and interest related to the withholding of personal income tax into
the Employment Development Department Contingent Fund. Existing law
requires the Director of the Employment Development Department to
estimate the amount of penalties and interest collected related to
the withholding of personal income tax and transfer that amount into
the Personal Income Tax Fund on a quarterly basis.
This bill would suspend that transfer for the 2014-15 fiscal year.
(25) Existing law specifies that the total amount due to each
city, county, city and county, and special district in reimbursement
of state-mandated local costs, as specified, be appropriated for
payment to these entities over a period of not more than 15 years,
commencing with the Budget Act for the 2006-07 fiscal year and
concluding with the Budget Act for the 2020-21 fiscal year. Existing
law provides that there shall be no appropriation for payment of
reimbursement claims pursuant to these provisions for the 2012-13,
2013-14, and 2014-15 fiscal years.
This bill would delete the 2014-15 fiscal year from that latter
provision.
(26) The Economic Revitalization Act establishes the Governor's
Office of Business and Economic Development, also known as "GO-Biz,"
to, among other duties, serve the Governor as the lead entity for
economic strategy and the marketing of California on issues relating
to business development, private sector investment, and economic
growth.
This bill would appropriate $2,000,000 from the General Fund to
GO-Biz, on a one-time basis, to be used to draw down federal funding
in support of the Small Business Development Center Network Program.
This bill would also make these funds available for encumbrance and
expenditure until June 30, 2017.
(27) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
(28) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2014.
Vote: majority. Appropriation: no yes
. Fiscal committee: no yes .
State-mandated local program: no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17224 of the
Education Code is amended to read:
17224. (a) Any funds in the State School
Site Utilization Fund, including interest, that are not subject to
return to a school district pursuant to Section 17223 shall
revert to the Deferred Maintenance Fund. shall, upon
appropriation by the Legislature, be allocated for purposes of
administering the Leroy F. Greene School Facilities Act of 1998
(Chapter 12.5 (commencing with Section 17070.10) of Part 10).
(b) Any unencumbered funds in the State School Deferred
Maintenance Fund on July 1, 2014, shall be transferred to the State
School Site Utilization Fund.
SEC. 2. Section 17250.30 of the
Education Code is amended to read:
17250.30. (a) Any design-build entity that is selected to design
and build a project pursuant to this chapter shall possess or obtain
sufficient bonding to cover the contract amount for nondesign
services, and errors and omissions insurance coverage sufficient to
cover all design and architectural services provided in the contract.
This chapter does not prohibit a general or engineering contractor
from being designated the lead entity on a design-build entity for
the purposes of purchasing necessary bonding to cover the activities
of the design-build entity.
(b) Any payment or performance bond written for the purposes of
this chapter shall use a bond form developed by the Department of
General Services pursuant to subdivision (g) of Section 14661 of the
Government Code. The purpose of this subdivision is to promote
uniformity of bond forms to be used on school district design-build
projects throughout the state.
(c) (1) All subcontracts that were not listed by the design-build
entity in accordance with Section 17250.25 shall be awarded by the
design-build entity.
(2) The design-build entity shall do all of the following:
(A) Provide public notice of the availability of work to be
subcontracted.
(B) Provide a fixed date and time on which the subcontracted work
will be awarded.
(3) Subcontractors bidding on contracts pursuant to this
subdivision shall be afforded the protections contained in Chapter 4
(commencing with Section 4100) of Part 1 of Division 2 of the Public
Contract Code.
(4) (A) If the school district elects to award a project pursuant
to this section, retention proceeds withheld by the school district
from the design-build entity shall not exceed 5 percent if a
performance and payment bond, issued by an admitted surety insurer,
is required in the solicitation of bids.
(B) In a contract between the design-build entity and a
subcontractor, and in a contract between a subcontractor and any
subcontractor thereunder, the percentage of the retention proceeds
withheld shall not exceed the percentage specified in the contract
between the school district and the design-build entity. If the
design-build entity provides written notice to any subcontractor who
is not a member of the design-build entity, prior to or at the time
the bid is requested, that a bond may be required and the
subcontractor subsequently is unable or refuses to furnish a bond to
the design-build entity, then the design-build entity may withhold
retention proceeds in excess of the percentage specified in the
contract between the school district and the design-build entity from
any payment made by the design-build entity to the subcontractor.
(5) In accordance with the provisions of applicable state law, the
design-build entity may be permitted to substitute securities in
lieu of the withholding from progress payments. Substitutions shall
be made in accordance with Section 22300 of the Public Contract Code.
(d) (1) For contracts for public works projects awarded prior to
the effective date of the regulations adopted by the
Department of Industrial Relations pursuant to subdivision (g) of
Section 1771.5 of the Labor Code, January 1, 2012,
the school district shall establish and enforce a labor
compliance program containing the requirements outlined in Section
1771.5 of the Labor Code or shall contract with a third party to
operate a labor compliance program containing the requirements
outlined in Section 1771.5 of the Labor Code. This requirement shall
not apply to projects where the school district or the design-build
entity has entered into a collective bargaining agreement that binds
all of the contractors performing work on the project.
(2) For contracts for public works projects awarded on or after
the effective date of the regulations adopted by the
Department of Industrial Relations pursuant to subdivision (g) of
Section 1771.5 of the Labor Code, the school district shall reimburse
the department for its reasonable and directly related costs of
performing prevailing wage monitoring and enforcement on public works
projects pursuant to rates established by the department as set
forth in subdivision (h) of Section 1771.5 of the Labor Code. All
moneys collected pursuant to this subdivision shall be deposited in
the State Public Works Enforcement Fund created by Section 1771.3 of
the Labor Code, and shall be used only for enforcement of prevailing
wage requirements on those projects. January 1, 2012,
the project shall be subject to the requirements of Section 1771.4 of
the Labor Code.
(3) In lieu of reimbursing the Department of Industrial Relations
for its reasonable and directly related costs of performing,
monitoring, and enforcement on public works projects, the school
district may elect to continue operating an existing previously
approved labor compliance program to monitor and enforce prevailing
wage requirements on the project if it has either not contracted with
a third party to conduct its labor compliance program and requests
and receives approval from the department to continue its existing
program or it enters into a collective bargaining agreement that
binds all of the contractors performing work on the project and that
includes a mechanism for resolving disputes about the payment of
wages.
SEC. 3. Section 81704 of the Education
Code is amended to read:
81704. (a) Any design-build entity that is selected to design and
build a project pursuant to this chapter shall possess or obtain
sufficient bonding to cover the contract amount for nondesign
services, and errors and omission insurance coverage sufficient to
cover all design and architectural services provided in the contract.
This chapter does not prohibit a general or engineering contractor
from being designated the lead entity on a design-build entity for
the purposes of purchasing necessary bonding to cover the activities
of the design-build entity.
(b) Any payment or performance bond written for the purposes of
this chapter shall use a bond form developed by the Department of
General Services pursuant to subdivision (i)
(g) of Section 14661 of the Government Code. The purpose of
this subdivision is to promote uniformity of bond forms to be used on
community college district design-build projects throughout the
state.
(c) (1) All subcontracts that were not listed by the design-build
entity in accordance with Section 81703 shall be awarded by the
design-build entity in accordance with the design-build process set
forth by the community college district in the design-build package.
(2) The design-build entity shall do all of the following:
(A) Provide public notice of the availability of work to be
subcontracted.
(B) Provide a fixed date and time on which the subcontracted work
will be awarded.
(3) Subcontractors bidding on contracts pursuant to this
subdivision shall be afforded the protections contained in Chapter 4
(commencing with Section 4100) of Part 1 of Division 2 of the Public
Contract Code.
(4) (A) If the community college district elects to award a
project pursuant to this section, retention proceeds withheld by the
community college district from the design-build entity shall not
exceed 5 percent if a performance and payment bond, issued by an
admitted surety insurer, is required in the solicitation of bids.
(B) In a contract between the design-build entity and a
subcontractor, and in a contract between a subcontractor and any
subcontractor thereunder, the percentage of the retention proceeds
withheld shall not exceed the percentage specified in the contract
between the community college district and the design-build entity.
If the design-build entity provides written notice to any
subcontractor who is not a member of the design-build entity, prior
to or at the time the bid is requested, that a bond may be required
and the subcontractor subsequently is unable or refuses to furnish a
bond to the design-build entity, then the design-build entity may
withhold retention proceeds in excess of the percentage specified in
the contract between the community college district and the
design-build entity from any payment made by the design-build entity
to the subcontractor.
(5) In accordance with the provisions of applicable state law, the
design-build entity may be permitted to substitute securities in
lieu of the withholding from progress payments. Substitutions shall
be made in accordance with Section 22300 of the Public Contract Code.
(d) (1) For contracts for public works projects awarded prior to
the effective date of the regulations adopted by the
Department of Industrial Relations pursuant to subdivision (g) of
Section 1771.5 of the Labor Code, January 1, 2012,
the community college district shall establish and enforce a
labor compliance program containing the requirements outlined in
Section 1771.5 of the Labor Code or shall contract with a third party
to operate a labor compliance program containing the requirements
outlined in Section 1771.5 of the Labor Code. This requirement shall
not apply to projects where the community college district or the
design-build entity has entered into a collective bargaining
agreement that binds all of the contractors performing work on the
project.
(2) For contracts for public works projects awarded on or after
the effective date of the regulations adopted by the
Department of Industrial Relations pursuant to subdivision (g) of
Section 1771.5 of the Labor Code, the community college district
shall reimburse the department for its reasonable and directly
related costs of performing prevailing wage monitoring and
enforcement on public works projects, pursuant to rates established
by the department as set forth in subdivision (h) of Section 1771.5
of the Labor Code. All moneys collected pursuant to this subdivision
shall be deposited in the State Public Works Enforcement Fund created
by Section 1771.3 of the Labor Code, and shall be used only for
enforcement of prevailing wage requirements on those projects.
January 1, 2012, the project shall be subject to the
requirements of Section 1771.4 of the Labor Code.
(3) In lieu of reimbursing the Department of Industrial Relations
for its reasonable and directly related costs of performing
monitoring and enforcement on public works projects, the community
college district may elect to continue operating an existing
previously approved labor compliance program to monitor and enforce
prevailing wage requirements on the project if it has either not
contracted with a third party to conduct its labor compliance program
and requests and receives approval from the department to continue
its existing program or it enters into a collective bargaining
agreement that binds all of the contractors performing work on the
project and that includes a mechanism for resolving disputes about
the payment of wages.
SEC. 4. Section 6204 of the Government
Code is amended to read:
6204. (a) For purposes of this chapter, the following definitions
shall apply:
(1) "Archivist" means the Keeper of the
Chief of Archives, as specified in Section 12227.
(2) "Record" has the same meaning as "public records" is defined
in subdivision (e) of Section 6252, and includes, but is not limited
to, any writing containing information relating to the conduct of the
public's business prepared, owned, used, or retained by a state or
local agency regardless of physical form or characteristics.
(3) "Secretary" means the Secretary of State.
(b) Whenever the secretary, in consultation with the archivist,
has reasonable grounds to believe that a record belonging to the
state or a local agency is in the possession of a person,
organization, or institution not authorized by law to possess
those records, that record, the
secretary may issue a written notice demanding that person,
organization, or institution to do either of the following within 20
calendar days of receiving the notice:
(1) Return the record to the appropriate state or local agency.
(2) Respond in writing and declare why the record does not belong
to the state or a local agency.
(c) The notice and demand issued pursuant to subdivision (b) shall
identify the record claimed to belong to the state or local agency
with reasonable specificity, and shall state that the secretary is
authorized to take legal action to recover the record if the person,
organization, or institution fails to respond in writing within the
required time or does not adequately demonstrate that the record does
not belong to the state or a local agency.
(d) The secretary shall send the notice and demand specified in
subdivision (b) by certified or registered mail, return receipt
requested.
(e) When a record is returned pursuant to paragraph (1) of
subdivision (b), upon the request of the person, organization, or
institution that returned the record, the secretary or a local agency
that receives the record shall issue to that person, organization,
or institution a copy or digital image of the record, which shall be
certified as a true copy of the record that was returned to the state
or local agency, and dated on the same day the record was returned.
SEC. 5. Section 6531 of the Government
Code is amended to read:
6531. (a) The Legislature finds and declares all of the
following:
(1) It is in the best interests of communities located within the
City of San Diego for the local public agencies that have
jurisdiction within the city to form a joint powers agency to provide
for the orderly and coordinated acquisition, construction, and
development of model school projects. These projects may include the
acquisition of land by negotiation or eminent domain, the
construction of schools, the construction of recreational facilities
or park sites or both, and the construction of replacement and other
housing, including market rate, moderate-income, and low-income
housing.
(2) The coordinated construction of these projects by
redevelopment agencies, school districts, housing authorities,
housing commissions, and the city is of great public benefit and will
save public money and time in supplying much needed replacement
housing lost when schools are constructed within existing
communities.
(3) Legislation is needed to allow redevelopment agencies, school
districts, housing authorities, housing commissions, and the city to
use their powers to the greatest extent possible to expedite,
coordinate, and streamline the construction and eventual operation of
such projects.
(b) (1) Notwithstanding any other provision of law, the
Redevelopment Agency of the City of San Diego, the Housing Authority
of the City of San Diego, the San Diego Housing Commission, the San
Diego Unified School District, and the City of San Diego may enter
into a joint powers agreement to create and operate a joint powers
agency for the development and construction of a model school project
located within the City Heights Project Area. The agency created
pursuant to this section shall be known as the San Diego Model School
Development Agency. The San Diego Model School Development Agency
shall have all the powers of a redevelopment agency pursuant to Part
1 (commencing with Section 33000) of Division 24 of the Health and
Safety Code, all of the powers of a housing authority pursuant to
Part 2 (commencing with Section 34200) of Division 24 of the Health
and Safety Code, and all of the powers of the San Diego Unified
School District, as well as all the powers of a joint powers agency
granted pursuant to this chapter, to acquire property and to
construct and improve and finance one or more schools, housing
projects, parks, recreational facilities, and any other facilities
reasonably necessary for their proper operation. Further, the San
Diego Model School Development Agency shall have all of the powers of
the City of San Diego pursuant to its charter and state law to
acquire property and to finance and operate parks and recreational
facilities and any other facilities reasonably necessary for their
proper operation.
(2) Notwithstanding paragraph (1), neither the San Diego Model
School Development Agency nor the Redevelopment Agency of the City of
San Diego shall expend any property tax increment revenues to
acquire property, and to construct, improve, and finance a school
within the City Heights Project Area.
(3) Nothing in this section shall relieve the San Diego Model
School Development Agency or the Redevelopment Agency of the City of
San Diego from its obligations to increase, improve, and preserve the
community's supply of low- and moderate-income housing, including,
but not limited to, the obligation to provide relocation assistance,
the obligation to provide replacement housing, the obligation to meet
housing production quotas, and the obligation to set aside property
tax increment funds for those purposes.
(4) The San Diego Model School Development Agency shall perform
any construction activities in accordance with the applicable
provisions of the Public Contract Code, the Education Code, and the
Labor Code that apply, respectively, to the redevelopment agency,
housing authority, housing commission, school district, or city
creating the San Diego Model School Development Agency. Funding
pursuant to Proposition MM, a local San Diego County bond measure
enacted by the voters for the purpose of school construction, shall
be used only for the design, development, construction, and financing
of school-related facilities and improvements, including schools, as
authorized and to the extent authorized under Proposition MM.
(c) Any member of the joint powers agency, including the school
district, may, to the extent permitted by law, transfer and
contribute funds to the agency, including bond funds, to be deposited
into and to be held in a facility fund to be expended for purposes
of the acquisition of property for, and the development and
construction of, any school, housing project, or other facility
described in this section.
(d) Nothing contained in this section shall preclude the joint
powers agency from distributing funds, upon completion of
construction, the school, housing project, park, recreational
facility, or other facility to a member of the agency to operate the
school, housing project, park, or other facility that the member is
otherwise authorized to operate. These distribution provisions shall
be set forth in the joint powers agreement, if applicable.
(e) The San Diego Model School Development Agency may construct a
school in the City Heights Project Area pursuant to Chapter 2.5
(commencing with Section 17250.10) of Part 10.5 of the Education
Code.
(f) (1) For contracts for public works projects awarded prior to
the effective date of the regulations adopted by the
Department of Industrial Relations pursuant to subdivision (g) of
Section 1771.5 of the Labor Code, January 1, 2012,
the San Diego Model School Development Agency shall establish
and enforce, with respect to construction contracts awarded by the
joint powers agency, a labor compliance program containing the
requirements outlined in Section 1771.5 of the Labor Code or shall
contract with a third party to operate a labor compliance program
containing those requirements. This requirement shall not apply to
projects where the agency has entered into a collective bargaining
agreement that binds all of the contractors and subcontractors
performing work on the project, but nothing shall prevent the joint
powers agency from operating a labor compliance program with respect
to those projects.
(2) For contracts for public works projects awarded on or after
the effective date of the regulations adopted by the
Department of Industrial Relations pursuant to subdivision (g) of
Section 1771.5 of the Labor Code, the agency shall reimburse the
department for its reasonable and directly related costs of
performing prevailing wage monitoring and enforcement on public works
projects pursuant to rates established by the department as set
forth in subdivision (h) of Section 1771.5 of the Labor Code. All
moneys collected pursuant to this subdivision shall be deposited in
the State Public Works Enforcement Fund created by Section 1771.3 of
the Labor Code, and shall be used only for enforcement of prevailing
wage requirements on those projects. January 1, 2012,
the project shall be subject to the requirements of Section 1771.4 of
the Labor Code.
(3) In lieu of reimbursing the Department of Industrial Relations
for its reasonable and directly related costs of performing
monitoring and enforcement on public works projects, the San Diego
Model School Development Agency may elect to continue operating an
existing previously approved labor compliance program to monitor and
enforce prevailing wage requirements on the project if it has either
not contracted with a third party to conduct its labor compliance
program and requests and receives approval from the department to
continue its existing program or it enters into a collective
bargaining agreement that binds all of the contractors performing
work on the project and that includes a mechanism for resolving
disputes about the payment of wages.
(g) Construction workers employed as apprentices by contractors
and subcontractors on contracts awarded by the San Diego Model School
Development Agency shall be enrolled in a registered apprenticeship
program, approved by the California Apprenticeship Council, that has
graduated apprentices in the same craft in each of the preceding five
years. This graduation requirement shall be applicable for any craft
that was first deemed by the Department of Labor and the Department
of Industrial Relations to be an apprenticeable craft prior to
January 1, 1998. A contractor or subcontractor need not submit
contract award information to an apprenticeship program that does not
meet the graduation requirements of this subdivision. If no
apprenticeship program meets the graduation requirements of this
subdivision for a particular craft, the graduation requirements shall
not apply for that craft.
SEC. 6. Section 11270 of the Government
Code is amended to read:
11270. As used in this article, "administrative costs" means the
amounts expended by the Legislature, the Legislative Counsel Bureau,
the Governor's Office, the California Technology Agency,
Department of Technology, the Office of Planning
and Research, the Department of Justice, the State Controller's
Office, the State Treasurer's Office, the State Personnel Board, the
Department of Finance, the Financial Information System for
California, the Office of Administrative Law, the Department of Human
Resources, the Secretary of State and Consumer Services,
the Secretary of California Health and Human Services,
the Bureau of State Audits, the California
State Auditor's Office, and the California State Library, and a
proration of any other cost to or expense of the state for services
or facilities provided for the Legislature and the above agencies,
for supervision or administration of the state government or for
services to other state agencies.
SEC. 7. Section 11544 of the Government
Code is amended to read:
11544. (a) The Technology Services Revolving Fund, hereafter
known as the fund, is hereby created within the State Treasury. The
fund shall be administered by the Director of Technology to receive
all revenues from the sale of technology or technology services
provided for in this chapter, for other services rendered by the
Department of Technology, and all other moneys properly credited to
the Department of Technology from any other source, to pay, upon
appropriation by the Legislature, all costs arising from this chapter
and rendering of services to state and other public agencies,
including, but not limited to, employment and compensation of
necessary personnel and expenses, such as operating and other
expenses of the Department of Technology, and costs associated with
approved information technology projects, and to establish reserves.
At the discretion of the Director of Technology, segregated,
dedicated accounts within the fund may be established. The amendments
made to this section by the act adding this sentence shall apply to
all revenues earned on or after July 1, 2010.
(b) The fund shall consist of all of the following:
(1) Moneys appropriated and made available by the Legislature for
the purposes of this chapter.
(2) Any other moneys that may be made available to the Department
of Technology from any other source, including the return from
investments of moneys by the Treasurer.
(c) The Department of Technology may collect payments from public
agencies for providing services to those agencies that the
agencies have requested from the Department of Technology.
client agencies . The Department of Technology
may require monthly payments by client agencies for the services
the agencies have requested. provided.
Pursuant to Section 11255, the Controller shall transfer any amounts
so authorized by the
Department of Technology, consistent with the annual budget of each
department, to the fund. The Department of Technology shall notify
each affected state agency upon requesting the Controller to make the
transfer.
(d) At the end of any fiscal year, if the balance remaining in the
fund at the end of that fiscal year exceeds 25 percent of the
portion of the Department of Technology's current fiscal year budget
used for support of data center and other client services, the excess
amount shall be used to reduce the billing rates for services
rendered during the following fiscal year.
SEC. 8. Section 11548.5 of the
Government Code is repealed.
11548.5. This chapter shall remain in effect only until January
1, 2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
SEC. 9. Chapter 10 (commencing with Section 11850)
is added to Part 1 of Division 3 of Title 2 of the
Government Code , to read:
CHAPTER 10. THE FINANCIAL INFORMATION SYSTEM FOR CALIFORNIA
(FISCAL)
Article 1. General Provisions
11850. This chapter shall be known, and may be cited, as the
Financial Information System for California (FISCal) Act.
11852. For purposes of this chapter, the following terms shall
have the following meanings:
(a) "Approved FISCal Project documents" means any Special Project
Report approved by the Department of Technology, or its successor
agency, for the FISCal, as may be amended, augmented, or changed by
any subsequent approved Special Project Report or legislative action.
(b) "Cost or costs of the FISCal system" means all costs related
to the acquisition, design, development, installation, and
deployment, maintenance, operation, and enhancement of the system,
including, but not limited to, software, hardware, licenses,
upgrades, training, facilities, contractors, and staff.
(c) "Cost allocation plan" means the plan described in Section
11874.
(d) "FISCal" means the Financial Information System for
California.
(e) "FISCal Internal Services Fund" means the fund created
pursuant to Section 11870.
(f) "FISCal Service Center" means the entity created pursuant to
Section 11890.
(g) "Interface" means to communicate or interoperate with the
FISCal system.
(h) "Office" means the FISCal project office.
(i) "State departments and agencies" means all state offices,
officers, departments, divisions, bureaus, boards, commissions,
organizations, or agencies, claims against which are paid by warrants
drawn by the Controller, and whose financial activities are reported
in the annual financial statement of the state or are included in
the annual Governor's Budget, including, but not limited to, the
California State University, the University of California, the
legislative branch, and the judicial branch.
(j) "System" or "FISCal system" means a single integrated
financial management system for the state that encompasses the
management of resources and dollars as described in the approved
FISCal Project documents and includes the information required by
Section 11862.
11854. The Legislature intends that the FISCal system meet all of
the following objectives:
(a) Replace the state's aging legacy financial management systems
and eliminate fragmented and diverse reporting by implementing
standardized financial management processes and systems across all
departments and control agencies. For purposes of this subdivision,
"financial management" means accounting, budgeting, cash management,
asset accounting, vendor management, and procurement.
(b) Increase competition by promoting business opportunities
through the use of electronic bidding, online vendor interaction, and
automated vendor functions.
(c) Maintain a central source for financial management data to
reduce the time and expense of vendors, departments, and agencies
collecting, maintaining, and reconciling redundant data.
(d) Increase investment returns through timely and accurate
monitoring of cash balances, cashflow forecasting, and timing of
receipts and disbursements.
(e) Improve fiscal controls and support better decisionmaking by
state managers and the Legislature by enhancing the quality,
timeliness, consistency, and accessibility of financial management
information through the use of powerful data access tools,
standardized data, and financial management reports.
(f) Improve access and transparency of California's financial
management information allowing the implementation of increased
auditing, compliance reporting, and fiscal accountability while
sharing information between the public, the Legislature, external
stakeholders, state, federal, and local agencies.
(g) Automate manual processes by providing the ability to
electronically receive and submit financial management documents and
data between agencies, departments, banks, vendors, and other
government entities.
(h) Provide online access to financial management information
resulting in a reduction of payment or approval inquiries, or both.
(i) Improve the state's ability to preserve, access, and analyze
historical financial management information to reduce the workload
required to research and prepare this information.
(j) Enable the state to more quickly implement, track, and report
on changes to financial management processes and systems to
accommodate new information such as statutory changes and performance
information.
(k) Reduce the time, workload, and costs associated with capturing
and projecting revenues, expenditures, and program needs for
multiple years and scenarios, and for tracking, reporting, and
responding to legislative actions.
(l ) Track purchase volumes and costs by vendor and
commodity code or service code to increase strategic sourcing
opportunities, reduce purchase prices, and capture total state
spending data.
(m) Reduce procurement cycle time by automating purchasing
authority limits and approval dependencies, and easing access to
goods and services available from existing sources, including, but
not limited to, using leveraged procurement agreements.
(n) Streamline the accounts receivable collections process and
allow for offset capability which will provide the ability for
increased cash collection.
(o) Streamline the payment process and allow for faster vendor
payments that will reduce late payment penalty fees paid by the
state.
(p) Improve role-based security and workflow authorization by
capturing near real-time data from the state's human resources system
of record.
(q) Implement a stable and secure information technology
infrastructure.
Article 2. Development and Implementation of FISCal
11860. (a) To serve the best interest of the state by optimizing
the financial business management of the state, the Department of
Finance, the Controller, the Treasurer, and the Department of General
Services shall collaboratively develop, implement, utilize, and
maintain the FISCal system. This effort will ensure best business
practices by embracing opportunities to reengineer the state's
business processes and will encompass the management of resources and
funds in the areas of budgeting, accounting, procurement, cash
management, financial management, financial reporting, cost
accounting, asset accounting, project accounting, and grant
accounting.
(b) (1) All state departments and agencies shall use the FISCal
system, or, upon approval from the office, a department or agency
shall be permitted to interface its system with the FISCal system.
The FISCal system is intended to replace any existing central or
departmental systems duplicative of the functionality of the FISCal
system.
(2) The FISCal system shall first be developed and implemented
with a select number of state departments and agencies, as selected
by the office. Once the FISCal system has developed end-to-end
processes that meet the financial management needs of the state and
has been determined by the office to be effective, operationally
efficient, and secure, the FISCal system shall be further
implemented, in phases, as more fully described in the approved
FISCal project documents, at all remaining state departments and
agencies.
11862. (a) In addition to the requirements set forth in the
approved FISCal project documents, the FISCal system shall include a
state budget transparency component that allows the public to have
information regarding General Fund and federal fund expenditure data,
using an Internet Web site, by including all of the following
information for each General Fund and federal fund expenditure:
(1) The name and principal location of each entity or other
recipient of the funds.
(2) The amount of expenditure.
(3) The type of transaction.
(4) The identity of the state department or agency making the
expenditure.
(5) The budget program source for the expenditure.
(6) A brief description of the purpose for the expenditure.
(7) A brief description of any item purchased pursuant to the
expenditure.
(b) This section shall not require the disclosure of information
deemed confidential or otherwise exempt from disclosure under state
or federal law.
11864. (a) Throughout the development of the FISCal system, the
California State Auditor's Office shall independently monitor the
FISCal system as the California State Auditor deems appropriate. The
California State Auditor's Office independent monitoring of the
FISCal system shall include, but not be limited to, all of the
following:
(1) Monitoring the contract for independent project oversight and
independent verification and validation services relating to the
FISCal system.
(2) Assessing whether concerns about the FISCal project raised by
the independent project oversight and independent verification and
validation services are being addressed by the office and the
steering committee of the office.
(3) Assessing whether the FISCal system is progressing timely and
within its budget.
(b) The California State Auditor's Office shall report, at a
minimum, on or before January 10 of each year, on the FISCal system
activities that the California State Auditor's Office deems
appropriate to monitor pursuant to this section in a manner
consistent with Chapter 6.5 (commencing with Section 8543) of
Division 1.
(c) This section shall not supersede or compromise the Department
of Technology's oversight authority and responsibilities with respect
to the FISCal system.
Article 3. Funding and Accounts
11870. The FISCal Internal Services Fund continues in existence
in the State Treasury to pay the costs of development,
implementation, operations, and maintenance of the FISCal System. All
assets, liabilities, and surplus shall remain in the FISCal Internal
Services Fund. The Department of Finance shall make the final
determination of the budgetary and accounting transactions that are
required to carry out this section. Accounts and subaccounts may be
created within the FISCal Internal Services Fund as needed. Moneys in
the FISCal Internal Services Fund, and its accounts and subaccounts,
are available for cashflow borrowing by the General Fund pursuant to
Section 16310.
11872. (a) The FISCal Consolidated Payment Fund is created in the
State Treasury for the purpose of allowing the Controller to issue
consolidated payments, excluding payroll, to any payee, of costs that
are chargeable to appropriations made from other funds in the State
Treasury, thereby allowing for efficient processing through the
FISCal system of payments.
(b) The amounts to be disbursed from the FISCal Consolidated
Payment Fund shall be transferred by the Controller, from the funds
and appropriations otherwise chargeable therewith, to the FISCal
Consolidated Payment Fund prior to the time of disbursement. All
amounts in the FISCal Consolidated Payment Fund that are derived from
abatements, refunds of amounts disbursed, returned warrants, or the
cancellation of warrants issued from the FISCal Consolidated Payment
Fund shall be returned by the Controller to the funds and
appropriations from which the amounts were originally transferred.
11874. (a) The office, subject to the approval of the Department
of Finance, shall establish and assess fees and a payment schedule
for state departments and agencies to use or interface with the
FISCal system. The fees shall recover the costs of the FISCal system,
including, but not limited to, the ongoing maintenance and operation
costs of the FISCal system and shall be deposited in the FISCal
Internal Services Fund. The fees shall be based on an interim cost
allocation plan until statistically valid usage data is available.
(b) The office shall submit the cost allocation plan, including
the methodology used to develop fees, to the Department of Finance
during the state's annual budget development processes for review and
approval. The office shall submit any proposed changes in fees or
methodology to the Department of Finance concurrently with budget
requests.
Article 4. Background Check Program
11880. (a) The office and the FISCal Service Center shall require
fingerprint images and associated information from any employee,
prospective employee, contractor, subcontractor, volunteer, vendor,
and partner agency employee assigned to either the office or the
FISCal Service Center whose duties include, or would include, having
access to confidential or sensitive information or data on the
network or computing infrastructure.
(b) The fingerprint images and associated information described in
subdivision (a) shall be furnished to the Department of Justice for
the purpose of obtaining information as to the existence and nature
of any of the following:
(1) A record of state or federal convictions and the existence and
nature of state or federal arrests for which the person is free on
bail or on his or her own recognizance pending trial or appeal.
(2) Being convicted of, or pleading nolo contendere to, a crime,
or having committed an act involving dishonesty, fraud, or deceit, if
the crime or act is substantially related to the qualifications,
functions, or duties of the person in accordance with this provision.
(3) Any conviction or arrest, for which the person is free on bail
or on his or her own recognizance pending trial or appeal, with a
reasonable nexus to the information or data to which the person shall
have access.
(c) Requests for federal criminal offender record information
received by the Department of Justice pursuant to this section shall
be forwarded to the Federal Bureau of Investigation by the Department
of Justice.
(d) The Department of Justice shall respond to the Chief of Human
Resources of the office or the FISCal Service Center with information
as provided under subdivision (p) of Section 11105 of the Penal
Code.
(e) The Chief of Human Resources of the office or the FISCal
Service Center shall request subsequent arrest notifications from the
Department of Justice as provided under Section 11105.2 of the Penal
Code.
(f) The Department of Justice may assess a fee sufficient to cover
the processing costs required under this section, as authorized
pursuant to subdivision (e) of Section 11105 of the Penal Code.
(g) Persons described in subdivision (a) may be rejected if it is
determined they meet the criteria described in paragraph (2) or (3)
of subdivision (b). If a person is rejected, the individual shall
receive a copy of the response record from the Chief of Human
Resources of the office or the FISCal Service Center.
(h) The Chief of Human Resources of the office or the FISCal
Service Center shall follow a written appeal process for an
individual described in subdivision (a) who is determined ineligible
for employment because of his or her Department of Justice or Federal
Bureau of Investigation criminal offender record.
(i) When considering the background information received pursuant
to this section, the Chief of Human Resources of the office or the
FISCal Service Center shall take under consideration any evidence of
rehabilitation, including, but not limited to, participation in
treatment programs and age and specifics of the offense.
Article 5. FISCal Service Center
11890. There is in state government the FISCal Service Center.
11892. (a) Consistent with the FISCal Service Center Charter, the
FISCal Service Center shall incrementally assume responsibility of
the FISCal system functionality as portions of the FISCal system are
implemented and accepted.
(b) The FISCal Service Center shall provide the administrative
functions for the FISCal system, including those functions of the
office, during its existence.
(c) The office and the FISCal Service Center shall exist
concurrently during the phased implementation of the FISCal system.
Upon full implementation and final acceptance of the FISCal system,
the FISCal Service Center shall perform all maintenance and operation
of the FISCal system.
11894. The FISCal Executive Partner shall have appointment power
for both the office and the FISCal Service Center and shall oversee
the day-to-day functions of both the office and the FISCal Service
Center. The FISCal Executive Partner shall identify and transfer
staff from the office to the FISCal Service Center to further
performance of the duties specified in Section 11892, in accordance
with Section 19050.9.
SEC. 10. Section 12153 of the
Government Code is amended to read:
12153. The Secretary of State shall appoint a competent person to
the position of Keeper of the Chief of
Archives.
In case of his or her absence or inability to perform
the duties of his or her position, the Secretary of State
shall designate some other competent person to act in his or her
place.
SEC. 11. Section 12168.7 of the
Government Code is amended to read:
12168.7. (a) The California Legislature hereby recognizes the
need to adopt uniform statewide standards for the purpose of storing
and recording permanent and nonpermanent documents in electronic
media.
(b) In order to ensure that uniform statewide standards remain
current and relevant, the Secretary of State, in
consultation with the Department of General Services,
State shall approve and adopt appropriate standards established
by the American National Standards Institute or the Association for
Information and Image Management.
(c) The standards specified in subdivision (b) shall include a
requirement that a trusted system be utilized. For this purpose and
for purposes of Sections 25105, 26205, 26205.1, 26205.5, 26907,
27001, 27322.2, 34090.5, and 60203, Section 102235 of the Health and
Safety Code, and Section 10851 of the Welfare and Institutions Code,
"trusted system" means a combination of techniques, policies, and
procedures for which there is no plausible scenario in which a
document retrieved from or reproduced by the system could differ
substantially from the document that is originally stored.
(d) In order to develop statewide standards as expeditiously as
possible, and until the time that statewide standards are adopted
pursuant to subdivision (b), state officials shall ensure that
microfilming, electronic data imaging, and photographic reproduction
are done in compliance with the minimum standards or guidelines, or
both, as recommended by the American National Standards Institute or
the Association for Information and Image Management for recording of
permanent records or nonpermanent records.
SEC. 12. Section 12224 of the Government
Code is amended to read:
12224. The Secretary of State may receive into the archives any
item that he or she deems to be of historical
value and shall receive into the archives any other item from a state
agency if directed to do so by the Department of General Services.
value.
SEC. 13. Section 12225 of the
Government Code is amended to read:
12225. With the approval of the Department of General
Services, the The Secretary of State may at any
time return to the state agency from which it was received any item
in the archives which he or she does not deem to be of
historical value.
SEC. 14. Section 12227 of the
Government Code is amended to read:
12227. The Keeper of the Chief of
Archives is responsible for the preservation and indexing of material
deposited in the State archives, Archives,
and shall make the material readily available for use.
SEC. 15. Section 12228 of the
Government Code is amended to read:
12228. The Keeper of the Chief of
Archives shall give an appropriate receipt for all material received
by him or her as a part of the archives.
SEC. 16. Section 12229 of the
Government Code is amended to read:
12229. The Secretary of State may maintain any item in an active
file in his or her office for such time as he or she
deems proper before transferring it to the archives.
SEC. 17. Section 12230 of the
Government Code is amended to read:
12230. The Secretary of State shall establish a Document
Preservation Shop and an Indexing Section to facilitate the
preservation and indexing of the archives. He shall also
prepare exhibitions of documentary materials from the archives to be
displayed in the State Capitol Building.
SEC. 18. Section 12231 of the
Government Code is amended to read:
12231. In carrying out the provisions of this article, the
Secretary of State shall consult with and give consideration to the
recommendations of the California Heritage Preservation
Commission, California Historical Records Advisory
Board, which for that purpose shall serve in an advisory
capacity to the Secretary of State.
SEC. 19. Section 12232 of the
Government Code is amended to read:
12232. The Secretary of State shall utilize the
California State Library California Historical Records
Advisory Board to advise, encourage, and coordinate the
activities of the county historical records commissions, either
designated or appointed by the county boards of supervisors pursuant
to Section 26490. The chairman or his or her designee of each county
historical records commission may attend an annual meeting
with the California State Library, meeting, at
state expense, to receive advice in the preservation of local
government archives and public library collections of historical
materials.
SEC. 20. Section 12233 of the Government
Code is amended to read:
12233. (a) The Secretary of
State shall conduct under the administration of the State Archives a
regular governmental history documentation program to provide
through the use of oral history a continuing documentation of state
policy development as reflected in California's legislative and
executive history. The secretary may contract with oral history units
affiliated with public or private nonprofit colleges, universities,
or historical societies located in California to perform selected
program activities. The secretary shall prescribe professional
standards for the accomplishment and governance of the program.
(b) The Secretary of State shall submit annually a report to the
Legislature on the program conducted pursuant to this section.
SEC. 21. Section 12234 of the
Government Code is repealed.
12234. The secretary shall conduct a feasibility study to assess
the needs, costs, and appropriate location for a new facility or
conversion of an existing facility, or both, to house the collections
and operations of the California State Archives for at least the
next 50 years. The study shall take into consideration the
appropriateness of combining compatible needs of other agencies to
allow for cost-effective construction or conversion, or both, of
facilities.
SEC. 22. Section 12235 of the
Government Code is repealed.
12235. (a) The Director of General Services, as agent for the
Secretary of State, shall construct on Site 7, Capital Area Plan, a
Secretary of State and State Archives Building Complex, parking
facilities, and any other improvements, betterments, and facilities
related thereto, for the primary use of the Secretary of State and
State Archives as outlined in the study report required by Section
12234.
(b) Revenue bonds, negotiable notes, and negotiable bond
anticipation notes may be issued by the State Public Works Board
pursuant to the State Building Construction Act of 1955, Part 10b
(commencing with Section 15800), to finance the construction and
equipping of the Secretary of State and State Archives Building
Complex, parking facilities, and any other improvements, betterments,
and facilities related thereto as described in subdivision (a).
(c) The amount of revenue bonds, negotiable notes, or negotiable
bond anticipation notes to be sold shall equal the cost of
construction and equipping of the complex and facilities, the cost of
working drawings, sums necessary to pay financing costs, including
interest during construction, and a reasonable reserve fund.
Construction costs shall not exceed one hundred million dollars
($100,000,000) based on the Lee-Saylor Cost Index 433.
(d) The amount of negotiable bond anticipation notes sold shall
not exceed the amount of revenue bonds and negotiable notes
authorized by this section. Any augmentation of the approved project
costs shall be subject to Section
13332.11. The board may borrow funds for project
costs from the Pooled Money Investment Account pursuant to Sections
16312 and 16313.
(e) At least 20 days prior to the award of the principal bid for
the construction of the complex, the director shall notify the
chairpersons of the fiscal committees of each house of the
Legislature of the amount of the bid.
(f) (1) The Director of General Services may lease the complex and
facilities financed with the proceeds of the revenue bonds,
negotiable notes, or negotiable bond anticipation notes from the
board pursuant to Section 15817 for use by the Secretary of State and
State Archives.
(2) The director shall notify the Chairperson of the Joint
Legislative Budget Committee of the director's intention to execute
any lease agreement authorized by paragraph (1) at least 20 days
prior to its execution.
SEC. 23. Section 12236 of the
Government Code is amended to read:
12236. (a) The Secretary of State shall establish the
a Local Government Records Program to be
administered by the State Archives to establish guidelines for local
government records retention and to provide archival support to local
agencies in this state.
(b) The Secretary of State shall establish, publish, update, and
maintain on a permanent basis guidelines for local government records
retention. The Secretary of State may consult with appropriate
professional organizations representing city, county, and special
district records administrators regarding the establishment of these
guidelines.
(c) The program shall be primarily responsible for the performance
of the following functions:
(1) Publish the guidelines developed pursuant to subdivision (b)
in paper form initially and on the Internet web site for the
Secretary of State.
(2) Monitor and review changes in state laws and administrative
regulations that pertain to local government records retention.
(3) Monitor practices and procedures in records administration
that have bearing on local government records retention and
management.
(4) Update published guidelines on a current and timely basis as
changes occur.
(5) Make supporting information about state laws and
administrative regulations that pertain to local government records
retention available to local government agencies.
(6) Function as the liaison for the State Archives with
appropriate professional organizations.
(7) Maintain communication with individual local government
agencies.
(8) Consult and provide information and advice to local government
agencies on archival and records management practices.
(9) Consult and provide information and advice to local government
agencies on history and heritage.
SEC. 24. Article 7 (commencing with Section 12270)
is added to Chapter 3 of Part 2 of Division 3 of Title 2 of the
Government Code , to read:
Article 7. State Records Management Act
12270. This article shall be known, and may be cited, as the
State Records Management Act.
12271. For the purposes of this article, the following terms
shall have the following meanings:
(a) "Acquire" includes acquisition by gift, purchase, lease,
eminent domain, or otherwise.
(b) "Archival value" means the ongoing usefulness or significance
of a record based on the administrative, legal, fiscal, evidential,
or historical information it contains, justifying its permanent
preservation.
(c) "Public record plant" means the plant, or any part thereof, or
any record therein, of any person engaged in the business of
searching or publishing public records or insuring or guaranteeing
titles to real property, including copies of public records or
abstracts and memoranda taken from public records that are owned by
or in possession of that person or that are used by that person in
his or her business.
(d) "Public use form" means a form used by the state to obtain or
to solicit facts, opinions, or other information from the public or a
private citizen, partnership, corporation, organization, business
trust, or nongovernmental entity or legal representative thereof.
(e) "Record" has the same meaning as "public records" as defined
in subdivision (e) of Section 6252, and includes, but is not limited
to, any writing containing information relating to the conduct of the
public's business prepared, owned, used, or retained by a state or
local agency regardless of physical form or characteristics. Library
and museum materials made or acquired and preserved solely for
reference or exhibition purposes and stocks of publications and of
processed documents are not included within the definition of the
term "record" as used in this article.
12272. (a) The Secretary of State shall establish and administer
a records management program that will apply efficient and economical
management methods to the creation, utilization, maintenance,
retention, preservation, and disposal of state records.
(b) The duties of the Secretary of State shall include, but shall
not be limited to:
(1) Establishing standards, procedures, and techniques for
effective management of records.
(2) Obtaining from agencies reports required for the
administration of the program.
12273. Notwithstanding any other law, a record held in the State
Records Center or by a state agency determined by the Secretary of
State to have archival value and to be at risk of damage or loss, or
in poor physical condition, shall be transferred to the State
Archives at the direction of the Secretary of State with notification
to the head of the agency not less than 10 days prior to the
transfer. The Secretary of State shall enforce all statutory
requirements regarding the confidentiality of records transferred to
the State Archives pursuant to this section and shall make the
records available to authorized individuals or the public, as
determined by applicable law.
12274. The head of a state agency shall do all of the following:
(a) Establish and maintain an active, continuing program for the
economical and efficient management of the records and information
collection practices of the agency. The program shall ensure that the
information needed by the agency may be obtained with a minimum
burden upon individuals and businesses, especially small business
enterprises and others required to furnish the information.
Unnecessary duplication of efforts in obtaining information shall be
eliminated as rapidly as practical. Information collected by the
agency shall, as far as is expedient, be collected and tabulated in a
manner that maximizes the usefulness of the information to other
state agencies and the public.
(b) Determine, with the concurrence of the Secretary of State,
records essential to the functioning of state government in the event
of a major disaster.
(c) When requested by the Secretary of State, provide a written
justification for storage or extension of scheduled retention of a
record in the State Records Center for a period of 50 years or more.
The Secretary of State shall review and approve any scheduled
retention of a record in the State Records Center for a period of 50
years or more. A record deemed to have archival value shall be
transferred to the State Archives.
(d) Comply with the rules, regulations, standards, and procedures
issued by the Secretary of State.
12275. (a) A record shall not be destroyed or otherwise disposed
of by an agency of the state, unless it is determined by the
Secretary of State that the record has no further administrative,
legal, or fiscal value and the Secretary of State has determined that
the record is inappropriate for preservation in the State Archives.
(b) The Secretary of State shall not authorize the destruction of
a record subject to audit until he or she has determined that the
audit has been performed.
(c) The Secretary of State shall not authorize the destruction of
all or any part of an agency rulemaking file subject to Section
11347.3.
12276. (a) The records of a state agency may be microfilmed,
electronically data imaged, or otherwise photographically reproduced
and certified upon the written authorization of the head of the
agency. The microfilming, electronic data imaging, or photographic
reproduction shall be made in compliance with the minimum standards
or guidelines, or both, as recommended by the American National
Standards Institute or the Association for Information and Image
Management, and as adopted by the Secretary of State, for recording
of permanent records or nonpermanent records.
(b) The certification of each reproduction or set of reproductions
shall be in accordance with the standards, or have the approval, of
the Attorney General. The certification shall contain a statement of
the identity, description, and disposition or location of the records
reproduced, the date, reason, and authorization for the
reproduction, and other information that the Attorney General
requires.
(c) The certified reproductions shall be deemed to be original
records for all purposes, including introduction in courts of law and
state agencies.
12277. A person, other than a temporary employee, serving in the
state civil service and employed by the Department of General
Services in the California State Records and Information Management
Program shall remain in the state civil service and is hereby
transferred to the Secretary of State. The status, position, and
rights of the person shall not be affected by the transfer and shall
continue to be retained by the person pursuant to the State Civil
Service Act.
12278. All equipment and records in the California State Records
and Information Management Program in the Department of General
Services are transferred to the Secretary of State.
12279. If a record of a state agency has been lost or destroyed
by conflagration or other public calamity, the Secretary of State may
acquire the right to reproduce any portion of a public record plant
as is necessary for the purpose of restoring or replacing the record
or its substance.
SEC. 25. Section 12432 of the
Government Code is amended to read:
12432. (a) The Legislature hereby finds and declares that it is
essential for the state to replace the current automated human
resource/payroll systems operated by the Controller to ensure that
state employees continue to be paid accurately and on time and that
the state may take advantage of new capabilities and improved
business practices. To achieve this replacement of the current
systems, the Controller is authorized to procure, modify, and
implement a new human resource management system that meets the needs
of a modern state government. This replacement effort is known as
the 21st Century Project.
(b) Notwithstanding any other law, beginning with the 2004-05
fiscal year, the Controller may assess the special and
nongovernmental cost funds in sufficient amounts to pay for the
authorized 21st Century Project costs that are attributable to those
funds. Assessments in support of the expenditures for the 21st
Century Project shall be made quarterly, and the total amount
assessed from these funds annually shall not exceed the total
expenditures incurred by the Controller for the 21st Century Project
that are attributable to those funds in that fiscal year.
Appropriations for this purpose shall be made in the annual Budget
Act.
(c) To the extent permitted by law, beginning with the 2004-05
fiscal year, the Controller shall establish agreements with various
agencies and departments for the collection from federal funds of
costs that are attributable to federal funds. The total amount
collected from those agencies and departments annually shall not
exceed the total expenditures incurred by the Controller for the 21st
Century Project that are attributable to federal funds in that
fiscal year. Appropriations for that purpose shall be made in the
annual Budget Act.
(d) It is the intent of the Legislature that, beginning not
earlier than the 2006-07 fiscal year, future annual Budget Acts
include General Fund appropriations in sufficient amounts for
expenditures for the 21st Century Project that are attributable to
the General Fund. It is the Legislature's intent that the share of
the total project costs paid for by the General Fund shall be
equivalent to the share of the total project costs paid for from
special and nongovernmental cost fund assessments and collections
from federal funds.
(e) This section shall remain in effect only until June 30,
2014, 2015, and as of that date is
repealed, unless a later enacted statute, that is enacted
before June 30, 2014, deletes or extends that date.
repealed.
SEC. 26. Section 12478 of the
Government Code is amended to read:
12478. Upon receipt of proof, satisfactory to the Controller,
that a pay roll warrant issued by the Controller has been lost or
destroyed prior to its delivery to the employee to whom it is
payable, the Controller shall, upon certification by the payee's
appointing power, issue a duplicate
replacement warrant in payment of the same amount, without
requiring a bond from the payee, and any loss incurred in connection
therewith shall be charged against the account from which the payment
was derived. Without limiting the generality of the preceding
sentence, a pay roll warrant shall be considered to have been lost if
it has been sent to the payee but not received by him within a
reasonable time, consistent with the policy of prompt payment of
employees or if it has been sent to a state officer or employee for
delivery to the payee or for forwarding to another state officer or
employee for such delivery, and has not been received within such
reasonable time.
A duplicate replacement warrant is
void if not presented for payment to the State
Treasurer within the same time limit provided by law for the original
warrant.
SEC. 27. Section 13300.5 of the
Government Code is amended to read:
13300.5. (a) The Legislature finds and declares that the project
of the FISCal Project to modernize the state's internal financial
systems is a critical project that must be subject to the highest
level of oversight. According to the California Technology
Agency, Department of Technology, the size and
scope of this modernization and automation effort make this project
one of the highest risk projects undertaken by the state. Therefore,
the Legislature must take steps to ensure it is fully informed as the
project is implemented. It is the intent of the Legislature to adopt
additional reporting requirements for the FISCal Project Office to
adequately manage the project's risk and to ensure the successful
implementation of this effort.
(b) The FISCal Project Office shall report to the Legislature, by
February 15 of each year, an update on the project. The report shall
include all of the following:
(1) An executive summary and overview of the project's status.
(2) An overview of the project's history.
(3) Significant events of the project within the current reporting
period and a projection of events during the next reporting period.
(4) A discussion of mitigation actions being taken by the project
for any missed major milestones.
(5) A comparison of actual to budgeted expenditures, and an
explanation of variances and any planned corrective actions,
including a summary of FISCal project and staffing levels and an
estimate of staff participation from partner agencies.
(6) An articulation of expected functionality and qualitative
benefits from the project that were achieved during the reporting
period and that are expected to be achieved in the subsequent year.
(7) An overview of change management activities and stakeholder
engagement in the project, including a summary of departmental
participation in the FISCal project.
(8) A discussion of lessons learned and best practices that will
be incorporated into future changes in management activities.
(9) A description of any significant software customization,
including a justification for why, if any, customization was granted.
(10) Updates on the progress of meeting the project
objectives, including the objectives provided in paragraph (1) of
subdivision (c) of Section 15849.22. objectives.
(c) The initial report, due February 15, 2013, shall provide a
description of the approved project scope. Later reports shall
describe any later deviations to the project scope, cost, or
schedule.
(d) The initial report shall also provide a summary of the project
history from Special Project Report 1 to Special Project Report 4,
inclusive.
(e) This section shall remain in effect until a postimplementation
evaluation report has been approved by the California
Technology Agency. Department of Technology. The
California Technology Agency Department of
Technology shall post a notice on its Internet Web site when
the report is approved.
SEC. 28. Section 13332.11 of the
Government Code is amended to read:
13332.11. (a) (1) Except as otherwise specified in paragraph (2),
no funds appropriated for capital outlay
may shall not be expended by any state agency,
including , but not limited to, the University of
California, the California State University, the California Community
Colleges, and the Judicial Council Council,
until the Department of Finance and the State Public Works
Board have approved preliminary plans for the project to be funded
from a capital outlay appropriation.
(2) Paragraph (1) shall not apply to any of the following:
(A) Amounts for acquisition of real property in fee, or any other
lesser interest.
(B) Amounts for equipment or minor capital outlay projects.
(C) Amounts appropriated for preliminary plans, surveys, and
studies.
(b) Notwithstanding subdivision (a), approvals by the State Public
Works Board and the Department of Finance for the University of
California and the California Community Colleges shall apply only to
the allocation of state capital outlay funds appropriated by the
Legislature, including land acquisition and equipment funds.
(c) Any appropriated amounts for working drawings or construction
where the working drawings or construction have been started by any
state agency prior to approval of the preliminary plans by the State
Public Works Board shall be reverted to the fund from which the
appropriation was made, as approved by the Department of Finance.
No A major project for which a capital
outlay appropriation is made shall not be put out to bid
until the working drawings have been approved by the Department of
Finance. No A substantial change shall
not be made to the approved preliminary plans or approved
working drawings without written approval by the Department of
Finance. Any The Department of Finance shall
approve any proposed construction bid alternates shall
be approved by the Department of Finance. alternates.
(d) The Department of Finance shall approve the use of funds from
a capital outlay appropriation for the purchase of any significant
unit of equipment.
(e) The State Public Works Board may augment a major project in an
amount of up to 20 percent of the total of the capital outlay
appropriations for the project, irrespective of whether any such
appropriation has reverted. For projects authorized through multiple
fund sources, including, but not limited to, general obligation bonds
and lease-revenue bonds, to the extent otherwise permissible, the
Department of Finance shall have full authority to determine which of
the fund sources will bear all or part of an augmentation. The board
shall defer all augmentations in excess of 20 percent of the amount
appropriated for each capital outlay project until the Legislature
makes additional funds available for the specific project.
(f) In addition to the powers provided by Section 15849.6, the
State Public Works Board may further increase the additional amount
in Section 15849.6 to include a reasonable construction reserve
within the construction fund for any capital outlay project without
augmenting the project. The amount of the construction reserve shall
be within the 20 percent augmentation limitation. The board may use
this amount to augment the project, when and if necessary, after the
lease revenue bonds are sold to assure ensure
completion of the project. Upon completion of the
project, any amount remaining in the construction reserve funds shall
be used to offset rental payments.
(g) Augmentations in excess of 10 percent of the amount
appropriated for each capital outlay project shall be reported to the
Chairperson of the Joint Legislative Budget Committee, or his or her
designee, 20 days prior to board approval, or not sooner than
whatever lesser time the chairperson, or his or her designee, may in
each instance determine.
(h) (1) The Department of Finance may change the administratively
or legislatively approved scope for major capital outlay projects.
(2) If the Department of Finance changes the approved scope
pursuant to paragraph (1), the department shall report the changes
and associated cost implications to the Chairperson of the Joint
Legislative Budget Committee, the chairpersons of the respective
fiscal committees, and the legislative advisers of the State Public
Works Board 20 days prior to the proposed board action to recognize
the scope change.
(i) The State Public Works Board shall defer action with respect
to approval of an acquisition project, when it is determined that the
estimated cost of the total acquisition project, as approved by the
Legislature is in excess of 20 percent of the amount appropriated,
unless it is determined that a lesser portion of the property is
sufficient to meet the objectives of the project approved by the
Legislature, and the Chairperson of the Joint Legislative Budget
Committee, or his or her designee, is provided a 20-day prior
notification of the proposed reductions in the acquisition project,
or whatever lesser period the chairperson, or his or her designee,
may in each instance determine.
(j) The Department of Finance shall report to the Chairperson of
the Joint Legislative Budget Committee, the chairpersons of the
respective fiscal committees, and legislative advisers of the State
Public Works Board 20 days prior to the proposed board approval of
preliminary plans when it is determined that the estimated cost of
the total capital outlay construction project is in excess of 20
percent of the amount recognized by the Legislature.
(k) Nothing in this section shall be construed to limit or control
the Department of Transportation or the California Exposition and
State Fair in the expenditure of all funds appropriated to the
department for capital outlay purposes.
SEC. 29. Section 13332.19 of the
Government Code is amended to read:
13332.19. (a) For the purposes of this section, the following
definitions shall apply:
(1) "Design-build" means a construction procurement process in
which both the design and construction of a project are procured from
a single entity.
(2) "Design-build project" means a capital outlay project using
the design-build construction procurement process.
(3) "Design-build entity" means a partnership, corporation, or
other legal entity that is able to provide appropriately licensed
contracting, architectural, and engineering services as needed.
(4) "Design-build solicitation package" means the performance
criteria, any concept drawings, the form of contract, and all other
documents and information that serve as the basis on which bids or
proposals will be solicited from the design-build entities.
(5) "Design-build phase" means the period following the award of a
contract to a design-build entity in which the design-build entity
completes the design and construction activities necessary to fully
complete the project in compliance with the terms of the contract.
(6) "Performance criteria" means the information that fully
describes the scope of the proposed project and includes, but is not
limited to, the size, type, and design character of the buildings and
site; the required form, fit, function, operational requirements,
and quality of design, materials, equipment, and workmanship; and any
other information deemed necessary to sufficiently describe the
state's needs.
(7) "Concept drawings" means any schematic drawings or
architectural renderings that are prepared, in addition to
performance criteria, in such detail as is necessary to sufficiently
describe the state's needs.
(b) (1) Except as otherwise specified in
paragraphs (1) to (4), subparagraphs (A) to
(D), inclusive, no of paragraph (2)
funds appropriated for a design-build project may
shall not be expended by any state agency,
including, but not limited to, the University of California, the
California State University, the California Community Colleges, and
the Judicial Council, until the Department of Finance and the State
Public Works Board have approved performance criteria or performance
criteria and concept drawings for the project.
This
(2) This section shall not apply
to any of the following:
(1)
(A) Amounts for acquisition of real property, in fee or
any lesser interest.
(2)
(B) Amounts for equipment or minor capital outlay
projects.
(3)
(C) Amounts appropriated for performance criteria and
concept drawings.
(4)
(D) Amounts appropriated for preliminary plans, if the
appropriation was made prior to January 1, 2005.
(c) Any appropriated amounts for the design-build phase of a
design-build project, where funds have been expended on the
design-build phase by any state agency prior to the approval of the
performance criteria or the performance criteria and concept drawings
by the State Public Works Board, and all amounts not approved by the
board under this section shall be reverted to the fund from which
the appropriation was made. No A
design-build project for which a capital outlay appropriation is made
shall not be put out to design-build solicitation until
the bid package has been approved by the Department of Finance.
No A substantial change shall not
be made to the performance criteria or to performance criteria
and concept drawings as approved by the board and the Department of
Finance without written approval by the Department of Finance.
Any The Department of Finance shall approve
any proposed bid or proposal alternates set forth in the
design-build solicitation package shall be approved by the
Department of Finance. package.
(d) The State Public Works Board may augment a design-build
project in an amount of up to 20 percent of the capital outlay
appropriations for the project, irrespective of whether any such
appropriation has reverted. For projects authorized through multiple
fund sources, including, but not limited to, general obligation bonds
and lease-revenue bonds, to the extent permissible, the Department
of Finance shall have full authority to determine which of the fund
sources will bear all or part of an augmentation. The board shall
defer all augmentations in excess of 20 percent of the amount
appropriated for each design-build project until the Legislature
makes additional funds available for the specific project.
(e) In addition to the powers provided by Section 15849.6, the
State Public Works Board may further increase the additional amount
in Section 15849.6 to include a reasonable construction reserve
within the construction fund for any capital outlay project without
augmenting the project. The amount of the construction reserve shall
be within the 20 percent augmentation limitation. The board may use
this amount to augment the project, when and if necessary, after the
lease-revenue bonds are sold to assure ensure
completion of the project. Upon completion of the
project, any amount remaining in the construction reserve fund shall
be used to offset rental payments.
(f) Any augmentation in excess of 10 percent of the amounts
appropriated for each design-build project shall be reported to the
Chairperson of the Joint Legislative Budget Committee, or his or her
designee, 20 days prior to board approval, or not sooner than
whatever lesser time the chairperson, or his or her designee, may in
each instance determine.
(g) (1) The Department of Finance may change the administratively
or legislatively approved scope for major design-build projects.
(2) If the Department of Finance changes the approved scope
pursuant to paragraph (1), the department shall report the changes
and associated cost implications to the Chairperson of the Joint
Legislative Budget Committee, the chairpersons of the respective
fiscal committees, and the legislative members of the State Public
Works Board 20 days prior to the proposed board action to recognize
the scope change.
(h) The Department of Finance shall report to the Chairperson of
the Joint Legislative Budget Committee, the chairpersons of the
respective fiscal committees, and the legislative members of the
State Public Works Board 20 days prior to the proposed board approval
of performance criteria or performance criteria and concept drawings
for any project when it is determined that the estimated cost of the
total design-build project is in excess of 20 percent of the amount
recognized by the Legislature.
SEC. 30. Section 13963.1 of the
Government Code is amended to read:
13963.1. (a) The Legislature finds and declares all of the
following:
(1) Without treatment, approximately 50 percent of people who
survive a traumatic, violent injury experience lasting or extended
psychological or social difficulties. Untreated psychological trauma
often has severe economic consequences, including overuse of costly
medical services, loss of income, failure to return to gainful
employment, loss of medical insurance, and loss of stable housing.
(2) Victims of crime should receive timely and effective mental
health treatment.
(3) The board shall administer a program to evaluate applications
and award grants to trauma recovery centers.
(b) The board shall award a grant only to a trauma recovery center
that meets both of the following criteria:
(1) The trauma recovery center demonstrates that it serves as a
community resource by providing services, including, but not limited
to, making presentations and providing training to law enforcement,
community-based agencies, and other health care providers on the
identification and effects of violent crime.
(2) Any other related criteria required by the board.
(c) Upon appropriation by the Legislature, the board shall award
grants totaling up to two million dollars ($2,000,000) per year. All
grants shall be funded only from the Restitution Fund.
(c) It is the intent of the Legislature to provide an annual
appropriation of two million dollars ($2,000,000) per year. All
grants awarded by the board shall be funded only from the Restitution
Fund.
(d) The board may award a grant providing funding for up to a
maximum period of three years. Any portion of a grant that a trauma
recovery center does not use within the specified grant period shall
revert to the Restitution Fund. The board may award consecutive
grants to a trauma recovery center to prevent a lapse in funding. The
board shall not award a trauma recovery center more than one grant
for any period of time.
(e) The board, when considering grant applications, shall give
preference to a trauma recovery center that conducts outreach to, and
serves, both of the following:
(1) Crime victims who typically are unable to access traditional
services, including, but not limited to, victims who are homeless,
chronically mentally ill, of diverse ethnicity, members of immigrant
and refugee groups, disabled, who have severe trauma-related symptoms
or complex psychological issues, or juvenile victims, including
minors who have had contact with the juvenile dependency or justice
system.
(2) Victims of a wide range of crimes, including, but not limited
to, victims of sexual assault, domestic violence, physical assault,
shooting, stabbing, and vehicular assault, and family members of
homicide victims.
(f) The trauma recovery center sites shall be selected by the
board through a well-defined selection process that takes into
account the rate of crime and geographic distribution to serve the
greatest number of victims.
(g) A trauma recovery center that is awarded a grant shall do both
of the following:
(1) Report to the board annually on how grant funds were spent,
how many clients were served (counting an individual client who
receives multiple services only once), units of service, staff
productivity, treatment outcomes, and patient flow throughout both
the clinical and evaluation components of service.
(2) In compliance with federal statutes and rules governing
federal matching funds for victims' services, each center shall
submit any forms and data requested by the board to allow the board
to receive the 60 percent federal matching funds for eligible victim
services and allowable expenses.
(h) For purposes of this section, a trauma recovery center
provides, including, but not limited to, all of the following
resources, treatments, and recovery services to crime victims:
(1) Mental health services.
(2) Assertive community-based outreach and clinical case
management.
(3) Coordination of care among medical and mental health care
providers, law enforcement agencies, and other social services.
(4) Services to family members and loved ones of homicide victims.
(5) A multidisciplinary staff of clinicians that includes
psychiatrists, psychologists, and social workers.
SEC. 31. Section 14740 of the
Government Code is amended to read:
14740. This chapter shall be known as the "State
State Records Management Act."
Storage Act.
SEC. 32. Section 14745 of the
Government Code is amended to read:
14745. The director shall establish and administer in the
executive branch of state government a records management
program, which storage program that will apply
efficient and economical management records
storage methods to the creation,
utilization, maintenance, retention, preservation, and disposal of
state records.
SEC. 33. Section 14746 of the
Government Code is amended to read:
14746. The duties of the director shall include
include, but not be limited to:
(a) Establishing standards, procedures, and techniques for
effective management storage of
records.
(b) Providing appropriate protection for records designated by
state agencies, with the concurrence of the director, as essential to
the functioning of state government in the event of a major
disaster.
(c) Obtaining from agencies reports required for the
administration of the program.
(d) Establishing, maintaining, and operating record centers for
the storage, processing, and servicing of scheduled records for state
agencies pending their deposit with the State Archives or their
disposition in any other manner authorized by law.
SEC. 34. Article 3 (commencing with Section 14750)
of Chapter 5 of Part 5.5 of Division 3 of Title 2 of the
Government Code is repealed.
SEC. 35. Article 4 (commencing with Section 14755)
of Chapter 5 of Part 5.5 of Division 3 of Title 2 of the
Government Code is repealed.
SEC. 36. Article 6 (commencing with Section 14765)
of Chapter 5 of Part 5.5 of Division 3 of Title 2 of the
Government Code is repealed.
SEC. 37. Article 7 (commencing with Section 14769)
of Chapter 5 of Part 5.5 of Division 3 of Title 2 of the
Government Code is repealed.
SEC. 38. Chapter 7 (commencing with Section
15849.20) of Part 10b of Division 3 of Title 2 of the
Government Code is repealed.
SEC. 39. Section 16429.1 of the
Government Code is amended to read:
16429.1. (a) There is in trust in the custody of the Treasurer
the Local Agency Investment Fund, which fund is hereby created. The
Controller shall maintain a separate account for each governmental
unit having deposits in this fund.
(b) Notwithstanding any other provisions of
law, a local governmental official, with the consent of the governing
body of that agency, having money in its treasury not required for
immediate needs, may remit the money to the Treasurer for deposit in
the Local Agency Investment Fund for the purpose of investment.
(c) Notwithstanding any other provisions of
law, an officer of any nonprofit corporation whose membership is
confined to public agencies or public officials, or an officer of a
qualified quasi-governmental agency, with the consent of the
governing body of that agency, having money in its treasury not
required for immediate needs, may remit the money to the Treasurer
for deposit in the Local Agency Investment Fund for the purpose of
investment.
(d) Notwithstanding any other provision of law
or provision of this section, a local agency, with the
approval of its governing body, may deposit in the Local Agency
Investment Fund proceeds of the issuance of bonds, notes,
certificates of participation, or other evidences of indebtedness of
the agency pending expenditure of the proceeds for the authorized
purpose of their issuance. In connection with these deposits of
proceeds, the Local Agency Investment Fund is authorized to receive
and disburse moneys, and to provide information, directly with or to
an authorized officer of a trustee or fiscal agent engaged by the
local agency, the Local Agency Investment Fund is authorized to hold
investments in the name and for the account of that trustee or fiscal
agent, and the Controller shall maintain a separate account for each
deposit of proceeds.
(e) The local governmental unit, the nonprofit corporation, or the
quasi-governmental agency has the exclusive determination of the
length of time its money will be on deposit with the Treasurer.
(f) The trustee or fiscal agent of the local governmental unit has
the exclusive determination of the length of time proceeds from the
issuance of bonds will be on deposit with the Treasurer.
(g) The Local Investment Advisory Board shall determine those
quasi-governmental agencies which qualify to participate in the Local
Agency Investment Fund.
(h) The Treasurer may refuse to accept deposits into the fund if,
in the judgment of the Treasurer, the deposit would adversely affect
the state's portfolio.
(i) The Treasurer may invest the money of the fund in securities
prescribed in Section 16430. The Treasurer may elect to have the
money of the fund invested through the Surplus Money Investment Fund
as provided in Article 4 (commencing with Section 16470) of Chapter
3 of Part 2 of Division 4 of Title 2. 3.
(j) Money in the fund shall be invested to achieve the objective
of the fund which is to realize the maximum return consistent with
safe and prudent treasury management.
(k) All instruments of title of all investments of the fund shall
remain in the Treasurer's vault or be held in safekeeping under
control of the Treasurer in any federal reserve bank, or any branch
thereof, or the Federal Home Loan Bank of San Francisco, with any
trust company, or the trust department of any state or national bank.
(l) Immediately at the conclusion of each calendar quarter, all
interest earned and other increment derived from investments shall be
distributed by the Controller to the contributing governmental units
or trustees or fiscal agents, nonprofit corporations, and
quasi-governmental agencies in amounts directly proportionate to the
respective amounts deposited in the Local Agency Investment Fund and
the length of time the amounts remained therein. An amount equal to
the reasonable costs incurred in carrying out the provisions of this
section, not to exceed a maximum of 5 percent of the earnings of this
fund and not to exceed the amount appropriated in the annual Budget
Act for this function, shall be deducted from the earnings prior to
distribution. However, if the 13-week Daily Treasury Bill Rate,
as published by the United States Department of the Treasury on the
last day of the state's fiscal year is below 1 percent, then the
above-noted reasonable costs shall not exceed a maximum of 8 percent
of the earnings of this fund for the subsequent fiscal year, shall
not exceed the amount appropriated in the annual Budget Act for this
function, and shall be deducted from the earnings prior to
distribution. The amount of this the
deduction shall be credited as reimbursements to the state
agencies, including the Treasurer, the Controller, and the Department
of Finance, having incurred costs in carrying out the provisions of
this section.
(m) The Treasurer shall prepare for distribution a monthly report
of investments made during the preceding month.
(n) As used in this section, "local agency," "local governmental
unit," and "local governmental official" includes a campus or other
unit and an official, respectively, of the California State
University who deposits moneys in funds described in Sections 89721,
89722, and 89725 of the Education Code.
SEC. 40. Section 16731.6 of the
Government Code is amended to read:
16731.6. (a) Notwithstanding any other provision of this chapter,
and as an alternative to the procedures set forth in Section 16731,
the committee may provide for the issuance of all or part of the
bonds authorized to be issued as commercial paper notes. The
committee shall adopt a resolution finding that issuance of the bonds
in the form of commercial paper notes is necessary and desirable,
directing the Treasurer to arrange for preparation of the requisite
number of suitable notes, and specifying other provisions relating to
the commercial paper notes, including all of the following:
(1) For each program of commercial paper notes authorized, the
resolution shall contain the final date of maturity and the total
aggregate principal amount of the commercial paper notes authorized
to be outstanding at any one time up to the maturity date, in
accordance with all of the following:
(A) The resolution may provide that the commercial paper notes may
be issued and renewed from time to time until the final maturity
date, and that the amount issued from time to time may be set by the
Treasurer up to the maximum amount authorized to be outstanding at
any one time.
(B) The resolution shall include methods of setting the dates,
numbers, and denominations of the commercial paper notes.
(C) The determination of the final maturity date and total amount
by the committee shall be made upon recommendation of the Treasurer
to meet the needs of the state for funds, to provide the maximum
benefit to potential purchasers, and to respond to the expected
demand for the commercial paper notes.
(D) Notwithstanding any other provision of this chapter, whenever
the committee determines to issue commercial paper notes, the
committee is not required to comply with the requirements of Section
16732.
(2) The method of setting the interest rates and interest payment
dates applicable to the commercial paper notes, in accordance with
the following:
(A) Commercial paper notes may bear a stated rate of interest
payable only at maturity, which rate or rates may be determined at
the time of sale of each unit of commercial paper notes.
(B) The rate of interest borne by the commercial paper notes shall
not exceed 11 percent per annum.
(C) Notwithstanding any other provision of this chapter, whenever
the committee determines to issue commercial paper notes, the
committee is not required to comply with the requirements of Section
16733.
(3) Any provisions for the redemption of the commercial paper
notes prior to stated maturity.
(4) The technical form and language of the commercial paper notes.
(5) All other terms and conditions of the commercial paper notes
and of their execution, issuance, and sale, deemed necessary and
appropriate by the committee.
(b) Notwithstanding any other provision of this chapter, when the
committee determines to issue commercial paper notes, all of the
following shall apply:
(1) The commercial paper notes may be sold at negotiated sale at a
price below the par value in a manner consistent with paragraph (2)
of subdivision (a).
(2) During the term of any program of commercial paper notes, the
renewal and reissuance from time to time of the commercial paper
notes in an amount up to the maximum amount authorized by the
resolution shall be deemed to be a refunding of the previously
maturing amount, permitted by and consistent with Article 6
(commencing with Section 16780).
(3) Consistent with the intent for the General Fund to realize a
savings in debt service costs when commercial paper notes are issued
in place of bonds without shifting or adding financing and debt
service costs to the bond funds, the state administrative costs of
commercial paper and interest payable and other costs associated with
commercial paper notes shall be paid for as follows:
(A) The proceeds of commercial paper notes are, notwithstanding
Section 13340, continuously appropriated to pay the state
administrative costs of commercial paper including, but not limited
to, costs of the Treasurer's office, the Controller's office, and the
Department of Finance.
(B) The An amount necessary to pay the
interest payable on maturing commercial paper notes
and other costs associated with commercial paper notes not specified
in subparagraph (A), including, but not limited to, remarketing fees,
issuing and paying agent fees, the letter or line of credit provider
fees, the rating agency fees, and bond counsel fees, shall be paid
from the General Fund which, notes, up to the maximum
rate authorized by law, is, notwithstanding Section 13340,
is continuously appropriated from the General
Fund to pay the interests and costs.
interest.
(C) Notwithstanding Section 13340, there is continuously
appropriated from the General Fund, an amount necessary to pay the
costs associated with commercial paper notes that are not described
in subparagraph (A), including, but not limited to, both of the
following:
(i) Fees, costs, indemnities, and other similar expenses incurred
under or in connection with agreements to purchase commercial paper
notes, including, but not limited to, letters or lines of credit, not
to exceed annually for each agreement 3 percent of the maximum
principal amount of commercial paper notes that could be purchased
and outstanding at any one time pursuant to an agreement.
(ii) All other costs, including, but not limited to, remarketing
and dealer fees, issuing and paying agent fees, rating agency fees,
and bond counsel fees, in an annual amount not to exceed 0.25 percent
of the highest sum at any time during that year of the maximum
principal amount of commercial paper notes authorized by all
resolutions.
SEC. 41. Section 17090 of the
Government Code is amended to read:
17090. Whenever any warrant lawfully drawn by the Controller is
lost or destroyed before it is paid by the Treasurer, the owner or
custodian may, prior to the time the warrant becomes void, procure
the issuance of a duplicate replacement
warrant upon compliance with this article.
SEC. 42. Section 17091 of the
Government Code is amended to read:
17091. Application for a duplicate
replacement warrant shall be made by filing with the
Controller:
(a) An affidavit setting forth the fact of its loss or
destruction, giving the number, date, amount, and name of the payee,
together with all material facts relative to the loss or destruction.
(b) An agreement to indemnify and hold harmless the state, its
officers officers, and employees, from
any loss resulting from the issuance of the duplicate
replacement warrant.
No indemnity agreement shall be required: (1) when the payee is
the United States Government, a state of the United States, any
agency, instrumentality or officer of the United States Government or
of a state, or any county, city, city and county, town, district, or
other political subdivision of a state, or any officer thereof; or
(2) when the owner or custodian is the State of California or any
agency or officer thereof.
The Controller need not require an indemnity agreement if the
Controller determines that it is in the best interest of the state
and that the state is adequately protected without an agreement.
SEC. 43. Section 17093 of the
Government Code is amended to read:
17093. If the application is approved, the Controller shall issue
and deliver to the applicant, on demand, a duplicate
replacement warrant for the full amount of the
original warrant. When the Controller issues the duplicate,
replacement, he or she shall notify
the Treasurer that a duplicate replacement
warrant has been issued and identify the warrant.
SEC. 44. Section 17094 of the Government
Code is amended to read:
17094. The Controller shall make the proper entries on his books,
showing the lost or destroyed warrants, and the issuance of
duplicate replacement warrants in lieu thereof.
SEC. 45. Section 17095 of the
Government Code is amended to read:
17095. The Treasurer shall pay such a duplicate
a replacement warrant as though it were the
original.
SEC. 46. Section 17096 of the
Government Code is amended to read:
17096. A duplicate replacement
warrant is void if not presented to the Treasurer for payment within
the same time limit provided by law for the original warrant.
SEC. 47. Section 17097 of the
Government Code is amended to read:
17097. Any loss incurred in connection with the issuance of a
duplicate replacement warrant shall be
charged against the account from which the payment was derived.
SEC. 48. Section 17617 of the
Government Code is amended to read:
17617. The total amount due to each city, county, city and
county, and special district, for which the state has determined that
reimbursement is required under paragraph (2) of subdivision (b) of
Section 6 of Article XIII B of the California Constitution, shall be
appropriated for payment to these entities over a period of not more
than 15 years, commencing with the Budget Act for the 2006-07 fiscal
year and concluding with the Budget Act for the 2020-21 fiscal year.
There shall be no appropriation for payment of reimbursement claims
submitted pursuant to this section for the 2012-13, 2013-14,
and 2014-15 2012-13 and 2013- 14
fiscal years.
SEC. 49. Section 20035.11 is added to the
Government Code , immediately following Section
20035.10 , to read:
20035.11. (a) For purposes of this section, "pay letter" means
the set of instructions issued by the Department of Human Resources
to the Controller and other state agencies of approved changes to
civil service pay scales that affect a supervisor or manager of
State Bargaining Unit 9 or
State Bargaining Unit 10 whose monthly salary is increased effective
July 1, 2014, pursuant to this pay letter.
(b) A supervisor or manager of State Bargaining Unit 9 or State
Bargaining Unit 10 to whom the pay letter applies and who retires or
dies on or after July 1, 2014, shall, for purposes of determining any
pension or benefit, have his or her final compensation pursuant to
Section 7522.32, 20035, 20035.9, 20035.10, 20037, 20037.11, or
20037.15, modified as described in this section. Any salary increase
as provided in the pay letter that exceeds 5 percent shall not be
included in final pensionable compensation or compensation earnable
for the member, except as follows:
(1) For July 1, 2014, to June 30, 2015, inclusive, only that
portion of the salary increase representing up to 33 1/3 percent of
the excess salary increase identified in the pay letter shall be
recognized for purposes of determining his or her compensation
earnable or pensionable compensation during the fiscal year period.
(2) For July 1, 2015, to June 30, 2016, inclusive, only that
portion of the salary increase representing up to 66 2/3 percent of
the excess salary increase identified in the pay letter shall be
recognized for purposes of determining his or her compensation
earnable or pensionable compensation during the fiscal year period.
(3) On and after July 1, 2016, the entire pay increase identified
in the pay letter shall be recognized for purposes of determining his
or her compensation earnable or pensionable compensation for service
performed on or after that date.
(c) A supervisor or manager of State Bargaining Unit 9 or State
Bargaining Unit 10 shall pay employee retirement contributions on the
full amount of the salary increase provided pursuant to the pay
letter. A member that has his or her final compensation modified
pursuant to subdivision (b) shall not be eligible for any refund of
his or her employee retirement contributions associated with that
salary increase unless he or she elects a full refund of his or her
retirement contributions and ceases to be a member of the system.
(d) The increased costs, if any, that result from the
administration of this section shall be paid by the employer.
(e) The Department of Human Resources shall identify the job
classifications receiving salary increases in the pay letter. The
Department of Human Resources and any department that employs the
affected managers and supervisors shall provide the system and the
Controller, upon request, any information necessary to implement this
section. The Controller shall provide the system, upon request, any
information necessary to implement this section.
SEC. 50. Section 22802 of the Government
Code is amended to read:
22802. (a) An annuitant whose retirement allowance is not
sufficient to pay his or her required contribution for the health
benefit plan in which he or she is enrolled may only remain enrolled
if the annuitant pays to the board the balance of the contributions
plus the related administrative costs, as determined by the board.
(b) (1) The annuitant shall pay the complementary annuitant
premium by remitting to the board quarterly payments in advance, or
by alternative monthly payment as determined by the board.
(2) The board may charge each annuitant who elects to pay the
complementary annuitant premium an initial setup charge and a monthly
maintenance charge, in amounts sufficient to ensure the ongoing
support of the complementary annuitant premium program.
(3) If payments are not received by the 10th of the month for the
following month, coverage shall be terminated and may not be resumed
until the next open enrollment period.
(c) Upon receipt of a written application, the benefits provided
by this section shall commence on the first day of the month
following receipt of the application and the payment required by the
board.
(d) The board has no duty to identify, locate, or notify any
annuitant who may be eligible for the benefit provided by this
section.
(e) Any complementary annuitant premium or any balance of unpaid
health benefit plan premiums that accrues and remains unpaid at the
time of the death of an annuitant shall be paid in accordance with
the sequence prescribed in Section 21506.
(f) All moneys received pursuant to this section shall be
deposited in the Public Employees' Contingency Reserve Fund in the
account provided by subdivision (e) (f)
of Section 22910.
SEC. 51. Section 22910 of the
Government Code is amended to read:
22910. (a) There shall be maintained in the State Treasury the
Public Employees' Contingency Reserve Fund. The board may invest
funds in the Public Employees' Contingency Reserve Fund in accordance
with the provisions of law governing its investment of the
retirement fund.
(b) (1) An account shall be maintained within the Public Employees'
Contingency Reserve Fund with respect to the health benefit plans
the board has approved or that have entered into a contract with the
board. The account shall be credited, from time to time and in
amounts as determined by the board, with moneys contributed under
Section 22885 or 22901 to provide an adequate contingency reserve.
The income derived from any dividends, rate adjustments, or other
funds received from a health benefit plan shall be credited to the
account. The board may deposit, in the same manner as provided in
paragraph (4), up to one-half of 1 percent of premiums in the account
for purposes of cost containment programs, subject to approval as
provided in paragraph (2) of subdivision (c).
(2) The account for health benefit plans may be utilized to defray
increases in future rates, to reduce the contributions of employees
and annuitants and employers, to implement cost containment programs,
or to increase the benefits provided by a health benefit plan, as
determined by the board. The board may use penalties and interest
deposited pursuant to subdivision (c) of Section 22899 to pay any
difference between the adjusted rate set by the board pursuant to
Section 22864 and the applicable health benefit plan contract rates.
(3) The total credited to the account for health benefit plans at
any time shall be limited, in the manner and to the extent the board
may find to be most practical, to a maximum of 10 percent of the
total of the contributions of the employers and employees and
annuitants in any fiscal year. The board may undertake any action to
ensure that the maximum amount prescribed for the fund is
approximately maintained.
(4) Board rules and regulations adopted pursuant to Section 22831
to minimize the impact of adverse selection or contracts entered into
pursuant to Section 22864 to implement health benefit plan
performance incentives may provide for deposit in and disbursement to
carriers or to Medicare from the account the portion of the
contributions otherwise payable directly to the carriers by the
Controller under Section 22913 as may be required for that purpose.
The deposits shall not be included in applying the limitations,
prescribed in paragraph (3), on total amounts that may be deposited
in or credited to the fund.
(5) Notwithstanding Section 13340, all moneys in the account for
health benefit plans are continuously appropriated without regard to
fiscal year for the purposes provided in this subdivision.
(c) (1) An account shall also be maintained in the Public
Employees' Contingency Reserve Fund for administrative expenses
consisting of funds deposited for this purpose pursuant to Sections
22885 and 22901.
(2) The moneys deposited pursuant to Sections 22885 and 22901 in
the Public Employees' Contingency Reserve Fund may be expended by the
board for administrative purposes, provided that the expenditure is
approved by the Department of Finance and the Joint Legislative
Budget Committee in the manner provided in the Budget Act for
obtaining authorization to expend at rates requiring a deficiency
appropriation, regardless of whether the expenses were anticipated.
(d) An account shall be maintained in the Public Employees'
Contingency Reserve Fund for the contributions required pursuant to
Section 22870. Notwithstanding Section 13340, the funds are
continuously appropriated, without regard to fiscal year, for the
payment of premiums or other charges to carriers or the Public
Employees' Health Care Fund. This subdivision shall not apply to
state administrative costs, which shall continue to be subject to
Section 13340.
(d)
(e) An account shall be maintained in the Public
Employees' Contingency Reserve Fund for health plan premiums
paid by contracting agencies, including the
contributions required pursuant to Section 22890 and for
payments made pursuant to subdivision (f) of Section 22850.
Notwithstanding Section 13340, the funds are continuously
appropriated, without regard to fiscal year, for the payment of
premiums or other charges to carriers or the Public Employees' Health
Care Fund. Penalties and interest paid pursuant to subdivision (c)
of Section 22899 shall be deposited in the account pursuant to
paragraphs (1) and (2) of subdivision (b).
(e)
(f) Accounts shall be maintained in the Public
Employees' Contingency Reserve Fund for complementary annuitant
premiums and related administrative expenses paid by annuitants
pursuant to Section 22802. Notwithstanding Section 13340, the funds
are continuously appropriated, without regard to fiscal year, to
reimburse the Public Employees' Retirement Fund, the Judges'
Retirement Fund, the Judges' Retirement Fund II, and the Legislators'
Retirement Fund, as applicable, for payment of annuitant health
premiums, and for the payment of premiums and other charges to
carriers or to the Public Employees' Health Care Fund. Administrative
expenses deposited in this account shall be credited to the account
provided by subdivision (c).
(f)
(g) Amounts received by the board for retiree drug
subsidy payments that are attributed to contracting agencies and
their annuitants and employees pursuant to subdivision (c) of Section
22910.5 shall be deposited in the Public Employees' Contingency
Reserve Fund. Notwithstanding Section 13340, these amounts are
continuously appropriated, without regard to fiscal year, for the
payment of premiums, costs, contributions, or other benefits related
to contracting agencies and their employees and annuitants, and as
consistent with the Medicare Prescription Drug Improvement and
Modernization Act, as amended.
(g)
(h) The Account for Retiree Drug Subsidy Payments is
hereby established in the Public Employees' Contingency Reserve Fund
and funds in that account shall, upon appropriation by the
Legislature, be used for the purposes described in Section 22910.5.
(h)
(i) Notwithstanding any other law, the Controller may
use the moneys in the Public Employees' Contingency Reserve Fund for
loans to the General Fund as provided in Sections 16310 and 16381.
However, interest shall be paid on all moneys loaned to the General
Fund from the Public Employees' Contingency Reserve Fund. Interest
payable shall be computed at a rate determined by the Pooled Money
Investment Board to be the current earning rate of the fund from
which loaned. This subdivision does not authorize any transfer that
will interfere with the carrying out of the object for which the
Public Employees' Contingency Reserve Fund was created.
SEC. 52. Section 22910.5 of the
Government Code is amended to read:
22910.5. (a) For purposes of this section, the following
definitions shall apply:
(1) "Local annuitant" means an annuitant other than a state
annuitant.
(2) "Local employee" means an employee other than a state
employee.
(3) "Retiree drug subsidy" means those amounts described in
Section 423.886 of Title 42 of the Code of Federal Regulations.
(4) "State annuitant" means an annuitant who is retired from
service with the state, including the California State University.
(5) "State employee" means an employee who is in the employment of
the state, including the California State University.
(b) For purposes of applying for and receiving funds as part of a
retiree drug subsidy, the board is designated as the sponsor of a
qualified retiree prescription drug plan for a state or contracting
agency plan, or a related plan, or an individual if both of the
following apply:
(1) The system applies for a retiree drug subsidy related to the
plan or individual.
(2) The system meets the definition of a plan sponsor as described
in Section 1395w-132(c) of Title 42 of the United States Code.
(c) When the board performs the duties described in subdivision
(b) related to, or applies for funds attributable to, a retiree drug
subsidy for a contracting agency plan, local annuitant, or local
employee, the board shall take all necessary steps to ensure that any
funds received by the board shall be deposited in the Public
Employees' Contingency Reserve Fund as described in subdivision
(f) (g) of Section 22910.
(d) When the board performs the duties described in subdivision
(b) related to, or applies for funds attributable to, a retiree drug
subsidy for a state plan, state annuitant, state employee, or state
employee association health benefit plan, the board shall take all
necessary steps to deposit these funds in the Account for Retiree
Drug Subsidy Payments as described in subdivision (g)
(h) of Section 22910.
(e) Notwithstanding any other law, all funds received by the board
as a result of a retiree drug subsidy application attributable to a
state employee or state annuitant, or the eligible dependent,
beneficiary, or similarly situated person of that state employee or
state annuitant, shall be deposited in the Account for Retiree Drug
Subsidy Payments, as described in subdivision (g)
(h) of Section 22910.
(f) Notwithstanding any other law, funds from the Account for
Retiree Drug Subsidy Payments that is maintained in the Public
Employees' Contingency Reserve Fund shall be appropriated by the
Legislature in the annual Budget Act for the purposes described in
this section. The Legislature shall, in the annual Budget Act,
specify how these funds are to be used, consistent with the federal
Medicare Prescription Drug Improvement and Modernization Act, as
amended, including the following purposes:
(1) Reducing the contributions by the state from the General Fund
or other funds in the State Treasury for health benefits that include
prescription drug benefits for state annuitants.
(2) Reducing contributions by state annuitants for their health
benefits that include prescription drug benefits.
(3) Defraying increases in future employer or state annuitant
health benefit or prescription drug rates.
(4) Implementing cost containment programs related to state
annuitant health benefits that include prescription drug benefits.
(5) Increasing state annuitant health benefits or prescription
drug benefits.
SEC. 53. Section 22913 of the
Government Code is amended to read:
22913. (a) Contributions of employees, annuitants, and employers
not credited to the Public Employees' Contingency Reserve Fund for
purposes specified in Section 22885 or 22901 shall be utilized to pay
the premiums or other charges to carriers or to the Public Employees'
Health Care Fund.
(b)
22913. (a) The Controller shall suitably
identify and remit the state's contribution for each employee or
annuitant monthly to the Public Employees' Health Care Fund
or to the carriers, Contingency Reserve Fund,
together with amounts authorized by the employees and annuitants to
be deducted from their salaries or retirement allowances for payment
of the employee contribution.
(c)
(b) The contributions of employees and annuitants of
contracting agencies and the contributions of contracting agency
employers shall be suitably identified and remitted monthly to the
carriers Public Employees' Contingency
Reserve Fund by warrant of the Controller upon claims filed by
the board.
SEC. 54. Section 26915 of the
Government Code is repealed.
26915. (a) Any requirement that an audit be performed by the
county auditor may, at the election of the board of supervisors, also
be performed by a county employee or officer who meets both of the
following qualifications:
(1) The person possesses a valid certificate issued by the
California Board of Accountancy and a permit authorizing the person
to practice as a certified public accountant or as a public
accountant.
(2) The employee or officer is independent in accordance with Rule
101 of the American Institute of Certified Public Accountants' Code
of Professional Conduct.
(b) The election made by the board of supervisors pursuant to
subdivision (a) may be in effect for no more than two years after the
date that the vote is taken by the board, but the election may be
renewed upon expiration.
(c) This section shall only be applicable in the County of Orange.
(d) Nothing in this section is intended to preclude a county
auditor from performing his or her statutorily prescribed duties.
SEC. 55. Section 50661 of the Health
and Safety Code is amended to read:
50661. (a) There is hereby created in the State Treasury the
Housing Rehabilitation Loan Fund. All interest or other increments
resulting from the investment of moneys in the Housing Rehabilitation
Loan Fund shall be deposited in the fund, notwithstanding Section
16305.7 of the Government Code. Notwithstanding Section 13340 of the
Government Code, all money in the fund is continuously appropriated
to the department for the following purposes:
(1) For making deferred-payment rehabilitation loans for
financing all or a portion of the cost of rehabilitating existing
housing to meet rehabilitation standards as provided in this chapter.
(2) For making deferred payment loans as provided in Sections
50668.5, 50669, and 50670.
(3) For making deferred payment loans pursuant to Sections
50662.5 and 50671.
(4) Subject to the restrictions of Section 53131, if applicable,
for administrative expenses of the department made pursuant to this
chapter, Article 3 (commencing with Section 50693) of Chapter 7.5,
and Chapter 10 (commencing with Section 50775).
(5) For related administrative costs of nonprofit corporations
and local public entities contracting with the department pursuant to
Section 50663 in an amount, if any, as determined by the department,
to enable the entities and corporations to implement a program
pursuant to this chapter. The department shall ensure that not less
than 20 percent of the funds loaned pursuant to this chapter shall be
allocated to rural areas. For purposes of this chapter "rural area"
shall have the same meaning as in Section 50199.21.
(b) There shall be paid into the fund the following:
(1) Any moneys appropriated and made available by the Legislature
for purposes of the fund.
(2) Any moneys that the department receives in repayment of loans
made from the fund, including any interest thereon.
(3) Any other moneys that may be made available to the department
for the purposes of this chapter from any other source or sources.
(4) Moneys transferred or deposited to the fund pursuant to
Sections 50661.5 and 50778.
(c) Notwithstanding any other provision of law, any interest or
other increment earned by the investment or deposit of moneys
appropriated by subdivision (b) of Section 3 of Chapter 2 of the
Statutes of the 1987-88 First Extraordinary Session, or Section 7 of
Chapter 4 of the Statutes of the 1987-88 First Extraordinary Session,
shall be deposited in a special account in the Housing
Rehabilitation Loan Fund and shall be used exclusively for purposes
of Sections 50662.5 and 50671.
(d) Notwithstanding any other provision of law, effective with
the date of the act adding this subdivision, appropriations
authorized by the Budget Act of 1996 for support of the Department of
Housing and Community Development from the California Disaster
Housing Repair Fund and the California Homeownership Assistance Fund
shall instead be authorized for expenditure from the Housing
Rehabilitation Loan Fund.
(e) Effective July 1, 2014, the California Housing Trust Fund in
the State Treasury is abolished and any remaining balance, assets,
liabilities, and encumbrances shall be transferred to, and become
part of, the Housing Rehabilitation Loan Fund. Notwithstanding
Section 13340 of the Government Code, all transferred amounts are
continuously appropriated to the department for the purpose of
satisfying any liabilities and encumbrances and the purposes
specified in this section.
SEC. 56. Section 50840 of the Health
and Safety Code is repealed.
50840. (a) The Legislature hereby finds and declares all of the
following:
(1) California is experiencing a severe housing shortage that
compounds itself further each year. While it is estimated that
250,000 new homes are needed each year to keep up with demand, only
140,000 building permits for new residential housing were issued in
1999. Moreover, the average number of residential building permits
issued over the last seven years is only 105,000 new units per year.
(2) The shortage in housing supply has led to skyrocketing home
sale and rental prices, which have made housing unaffordable to many
Californians. Seven of the nation's 10 least affordable metropolitan
areas for housing are in California. More than 35 percent of renter
households experience an extreme housing cost burden, which has been
defined as paying more than 50 percent of their income for housing.
(3) Long-term strategies are needed to address this ongoing
deficit in new home production and to meet the state's housing needs.
(4) In addition to helping meet the immediate need for housing,
the state will always have a role to play in assisting in the
provision of housing for families unable to afford market-rate rents.
(5) A permanent source of financing is needed to fulfill this
ongoing need for state housing assistance.
(6) A housing trust fund would provide a permanent source of
financing to be used solely to fund housing programs that serve low-
and very low income households.
(b) (1) It is the intent of the Legislature that the principal
in the California Housing Trust Fund shall not be spent, but rather
invested as an endowment, and that the return on this investment be
used to fund programs that meet the housing needs of lower and very
low income households.
(2) It is the intent of the Legislature to make a significant
appropriation to the California Housing Trust Fund in the 2001-02
fiscal year to ensure that there are sufficient ongoing resources to
provide for the housing needs of lower income households.
SEC. 57. Section 50841 of the Health
and Safety Code is repealed.
50841. (a) There is hereby created in the State Treasury the
California Housing Trust Fund. Notwithstanding Section 13340 of the
Government Code, all money in the fund is continuously appropriated
for the purposes of investment in a manner calculated to deliver the
greatest rate of return consistent with the requirements of Section
16430 of the Government Code.
(b) All interest or other increment resulting from investment or
deposit of moneys in the fund shall be deposited in the fund,
notwithstanding Section 16305.7 of the Government Code. Except as
provided in Section 50842, no money in the fund shall be spent,
loaned, transferred, or otherwise removed from the fund.
SEC. 58. Section 50842 of the Health
and Safety Code is repealed.
50842. (a) All interest or other increment resulting from any
investment of money in the California Housing Trust Fund may only be
expended, upon appropriation by the Legislature, after allocation to
the Treasurer of an amount not to exceed one-half of 1 percent of any
interest and other increment to cover the actual cost of
administering those investments, for housing programs or those
portions of housing programs authorized by law that serve lower and
very low income households, as defined in Sections 50079.5 and 50105,
respectively.
(b) Not less than 20 percent of any interest or other increment
appropriated by the Legislature in any fiscal year from the
California Housing Trust Fund shall be expended in rural areas, as
defined by Section 50199.21.
(c) Any interest or other increment not appropriated by the
Legislature for the purpose described in subdivision (a) in the
fiscal year succeeding its accrual shall be deposited in the
California Housing Trust Fund and shall no longer be deemed interest
or other increment for the purposes of this section.
SEC. 59. Section 51452 of the Health
and Safety Code is amended to read:
51452. (a) The School Facilities Fee Assistance Fund is hereby
established in the State Treasury and, notwithstanding Section 13340
of the Government Code, all money in the fund is continuously
appropriated to the Department of General Services for the purposes
of this chapter. All repayments of disbursed funds pursuant to this
chapter or any interest
earned from the investment in the Surplus Money Investment Fund or
any other moneys accruing to the fund from whatever source shall be
returned to the fund and are available for allocation by the
California Housing Finance Agency to programs established pursuant to
this chapter.
(b) The following amounts are hereby appropriated from the
General Fund to the School Facilities Fee Assistance Fund for
administrative costs and to make payments to purchasers of newly
constructed residential structures and housing sponsors of housing
developments pursuant to this chapter from that fund by fiscal year
as follows:
(1) Twenty million dollars ($20,000,000) in the 1998-99 fiscal
year.
(2) Forty million dollars ($40,000,000) in the 1999-2000 fiscal
year.
(3) Forty million dollars ($40,000,000) in the 2000-01 fiscal
year.
(4) Forty million dollars ($40,000,000) in the 2001-02 fiscal
year.
(c) The funds shall be distributed to each program in proportion
to the original total amounts available for each program as follows:
(1) Twenty-eight million dollars ($28,000,000) shall be available
for the program set forth in paragraph (1) of subdivision (a) of
Section 51451, except that any funds not expended within 18 months of
their appropriation and availability may also be available for
programs set forth in paragraphs (2) and (3) of subdivision (a) of
Section 51451.
(2) Twenty-eight million dollars ($28,000,000) shall be available
for the program set forth in paragraph (2) of subdivision (a) of
Section 51451, except that any funds not expended within 18 months of
their appropriation and availability may also be available for the
program set forth in paragraph (3) of subdivision (a) of Section
51451.
(3) Fifty-two million dollars ($52,000,000) shall be available
for the program set forth in paragraph (3) of subdivision (a) of
Section 51451.
(4) Fifty-two million dollars ($52,000,000) shall be available
for the program set forth in subdivision (b) of Section 51451.
(d) Reservations received on or after January 1, 2002, for
participation in the programs authorized by Section 51451 shall not
be honored by the California Housing Finance Agency. As of that date,
any unobligated amounts remaining in the School Facilities Fee
Assistance Fund after the transfer made pursuant to Item
1760-115-0101 of Section 2.00 of the Budget Act of 2001 (Chapter 106
of the Statutes of 2001) shall be transferred to the General Fund.
(e) Any right to receive repayments of assistance provided for by
Section 51451 shall be an asset of the School Facilities Fee
Assistance Fund. Any assistance provided for by Section 51451 that is
reserved but not ultimately paid, or is repaid to the California
Housing Finance Agency, shall be remitted to the Department of
General Services for deposit into the General Fund.
(e) Effective July 1, 2014, the School Facilities Fee Assistance
Fund in the State Treasury is abolished and any remaining balance,
assets, liabilities, and encumberances in the fund as of July 1,
2014, are transferred to the Housing Rehabilitation Loan Fund.
Notwithstanding Section 13340 of the Government Code, all transferred
amounts are continuously appropriated to the department for the
purpose of satisfying any liabilities and encumbrances and the
purposes specified in this section.
SEC. 60. Section 53545 of the Health
and Safety Code is amended to read:
53545. The Housing and Emergency Shelter Trust Fund of 2006 is
hereby created in the State Treasury. The Legislature intends that
the proceeds of bonds deposited in the fund shall be used to fund the
housing-related programs described in this chapter over the course
of the next decade. The proceeds of bonds issued and sold pursuant to
this part for the purposes specified in this chapter shall be
allocated in the following manner:
(a) (1) One billion five hundred million dollars ($1,500,000,000)
to be deposited in the Affordable Housing Account, which is hereby
created in the fund. Notwithstanding Section 13340 of the Government
Code, the money in the account shall be continuously appropriated in
accordance with the following schedule:
(A) (i) Three hundred forty-five million dollars ($345,000,000)
shall be transferred to the Housing Rehabilitation Loan Fund to be
expended for the Multifamily Housing Program authorized by Chapter
6.7 (commencing with Section 50675) of Part 2. The priorities
specified in Section 50675.13 shall apply to the expenditure of funds
pursuant to this clause.
(ii) Fifty million dollars ($50,000,000) shall be transferred to
the Housing Rehabilitation Loan Fund to be expended under the
Multifamily Housing Program authorized by Chapter 6.7 (commencing
with Section 50675) of Part 2 for housing meeting the definitions in
paragraphs (2) and (3) of subdivision (e) of Section 11139.3 of the
Government Code. The department may provide higher per-unit loan
limits as necessary to achieve affordable housing costs to the target
population. Any funds not encumbered for the purposes of this clause
by July 31, 2011, shall revert for general use in the Multifamily
Housing Program unless the department determines that funds should
revert sooner due to diminished demand.
(B) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Housing Rehabilitation Loan Fund to be expended
for the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, to be used for supportive
housing for individuals and households moving from emergency shelters
or transitional housing or those at risk of homelessness. The
Department of Housing and Community Development shall provide for
higher per-unit loan limits as reasonably necessary to achieve
housing costs affordable to those individuals and households. For
purposes of this subparagraph, "supportive housing" means housing
with no limit on length of stay, that is occupied by the target
population, as defined in subdivision (d) of Section 53260, and that
is linked to onsite or offsite services that assist the tenant to
retain the housing, improve his or her health status, maximize his or
her ability to live, and, when possible, work in the community. The
criteria for selecting projects shall give priority to:
(i) Supportive housing for people with disabilities who would
otherwise be at high risk of homelessness where the applications
represent collaboration with programs that meet the needs of the
person's disabilities.
(ii) Projects that demonstrate funding commitments from local
governments for operating subsidies or services funding, or both, for
five years or longer.
(C) One hundred thirty-five million dollars ($135,000,000) shall
be transferred to the fund created by subdivision (b) of Section
50517.5 to be expended for the programs authorized by Chapter 3.2
(commencing with Section 50517.5) of Part 2. The Department of
Housing and Community Development shall be deemed an eligible
recipient for the purposes of reconstructing and rehabilitating
migrant centers operated through the Office of Migrant Services
pursuant to Chapter 8.5 (commencing with Section 50710) of Part 2
that are in need of significant repairs or rehabilitation to ensure
the health and safety of residents, and shall not be subject to any
of the recipient requirements of Chapter 3.2 (commencing with Section
50517.5) of Part 2. To the extent no other funding sources are
available, the department may directly expend up to eleven million
dollars ($11,000,000) for purposes of reconstructing and
rehabilitating migrant centers.
(D) Three hundred million dollars ($300,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the Department of Housing and
Community Development, to be expended for the purposes of enabling
households to become or remain homeowners pursuant to the CalHome
Program authorized by Chapter 6 (commencing with Section 50650) of
Part 2, except ten million dollars ($10,000,000) shall be expended
for construction management under the California Self-Help Housing
Program pursuant to subdivision (b) of Section 50696.
(E) Two hundred million dollars ($200,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the California Housing Finance
Agency, to be expended for the purposes of the California Homebuyer's
Downpayment Assistance Program authorized by Chapter 11 (commencing
with Section 51500) of Part 3. Up to one hundred million dollars
($100,000,000) of these funds may be expended pursuant to subdivision
(b) of Section 51504.
(F) One hundred million dollars ($100,000,000) shall be
transferred to the Affordable Housing Innovation Fund, which is
hereby created in the State Treasury, to be administered by the
Department of Housing and Community Development. Funds shall be
expended for competitive grants or loans to sponsoring entities that
develop, own, lend, or invest in affordable housing and used to
create pilot programs to demonstrate innovative, cost-saving
approaches to creating or preserving affordable housing. Specific
criteria establishing eligibility for and use of the funds shall be
established in statute as approved by a 2/3 vote of each house of the
Legislature. Any funds not encumbered for the purposes set forth in
this subparagraph within 30 months of availability shall revert to
the Self-Help Housing Fund created by Section 50697.1 and shall be
available for the purposes described in subparagraph (D).
(G) One hundred twenty-five million dollars ($125,000,000) shall
be transferred to the Building Equity and Growth in Neighborhoods
Fund to be used for the Building Equity and Growth in Neighborhoods
(BEGIN) Program pursuant to Chapter 14.5 (commencing with Section
50860) of Part 1. Any funds not encumbered for the purposes set forth
in this subparagraph by November 17, 2011, shall revert for general
use in the CalHome Program unless the department determines that
funds should revert sooner due to diminished demand.
(H) Fifty million dollars ($50,000,000) shall be transferred to
the Emergency Housing and Assistance Fund for both of the following
purposes:
(i) Distribution of capital development grants under the
Emergency Housing and Assistance Program authorized by Chapter 11.5
(commencing with Section 50800) of Part 2 of Division 31. The funds
shall be administered by the Department of Housing and Community
Development in a manner consistent with the restrictions and
authorizations contained in Provision 3 of Item 2240-105-0001 of the
Budget Act of 2000, except that any appropriations in that item shall
not apply. The competitive system used by the department shall
incorporate priorities set by the designated local boards and their
input as to the relative merits of submitted applications from within
the designated local board's county in relation to those priorities.
In addition, the funding limitations contained in this section shall
not apply to the appropriation in that budget item.
(ii) The availability of funds for supportive housing purposes
specified in subparagraph (B).
(2) The Legislature may, from time to time, amend the provisions
of law related to programs to which funds are, or have been,
allocated pursuant to this subdivision for the purpose of improving
the efficiency and effectiveness of the program, or for the purpose
of furthering the goals of the program.
(3) With the revenues from bond proceeds issued and sold pursuant
to this part, the Bureau of State Audits shall conduct periodic
audits to ensure that bond proceeds are awarded in a timely fashion
and in a manner consistent with the requirements of this section, and
that awardees of bond proceeds are using funds in compliance with
applicable provisions of this section. The first audit shall be
conducted no later than one year from voter approval of this part.
(4) In its annual report to the Legislature, the Department of
Housing and Community Development shall report how funds that were
made available pursuant to this subdivision and allocated in the
prior year were expended. The department shall make the report
available to the public on its Internet Web site.
(b) Eight hundred fifty million dollars ($850,000,000) shall be
deposited in the Regional Planning, Housing, and Infill Incentive
Account, which is hereby created in the fund. Funds in the account
shall be available, upon appropriation by the Legislature, and
subject to such other conditions and criteria as the Legislature may
provide in statute, for the following purposes:
(1) For infill incentive grants for capital outlay related to
infill housing development and other related infill development,
including, but not limited to, all of the following:
(A) No more than two hundred million dollars ($200,000,000) for
park creation, development, or rehabilitation to encourage infill
development.
(B) Water, sewer, or other public infrastructure costs associated
with infill development.
(C) Transportation improvements related to infill development
projects.
(D) Traffic mitigation.
(2) For brownfield cleanup that promotes infill housing
development and other related infill development consistent with
regional and local plans.
(c) Three hundred million dollars ($300,000,000) to be deposited
in the Transit-Oriented Development Account, which is hereby created
in the fund, for transfer to the Transit-Oriented Development
Implementation Fund, for expenditure, upon appropriation by the
Legislature, pursuant to the Transit-Oriented Development
Implementation Program authorized by Part 13 (commencing with Section
53560).
(d) Two hundred million dollars ($200,000,000) shall be deposited
in the Housing Urban-Suburban-and-Rural Parks Account, which is
hereby created in the fund. Funds in the account shall be available
upon appropriation by the Legislature for housing-related parks
grants in urban, suburban, and rural areas, subject to the conditions
and criteria that the Legislature may provide in statute.
SEC. 61. Section 135 of the Labor Code
is amended to read:
135. In accordance with rules of practice and procedure that it
may adopt, the appeals board may, with the approval of the
Department of Finance, Secretary of State,
destroy or otherwise dispose of any file kept by it in connection
with any proceeding under Division 4 (commencing with Section 3200)
or Division 4.5 (commencing with Section 6100).
SEC. 62. Section 1725.5 is added to the
Labor Code , to read:
1725.5. A contractor shall be registered pursuant to this section
to be qualified to bid on, be listed in a bid proposal, subject to
the requirements of Section 4104 of the Public Contract Code, or
engage in the performance of any public work contract that is subject
to the requirements of this chapter. For the purposes of this
section, "contractor" includes a subcontractor as defined by Section
1722.1.
(a) To qualify for registration under this section, a contractor
shall do all of the following:
(1) Beginning July 1, 2014, register with the Department of
Industrial Relations in the manner prescribed by the department and
pay an initial nonrefundable application fee of three hundred dollars
($300) to qualify for registration under this section and an annual
renewal fee on or before July 1 of each year thereafter. The annual
renewal fee shall be in a uniform amount set by the Director of
Industrial Relations, and the initial registration and renewal fees
may be adjusted no more than annually by the director to support the
costs specified in Section 1771.3.
(2) Provide evidence, disclosures, or releases as are necessary to
establish all of the following:
(A) Workers' Compensation coverage that meets the requirements of
Division 4 (commencing with Section 3200) and includes sufficient
coverage for any worker whom the contractor employs to perform work
that is subject to prevailing wage requirements other than a
contractor who is separately registered under this section. Coverage
may be evidenced by a current and valid certificate of workers'
compensation Insurance or certification of self-insurance required
under Section 7125 of the Business and Professions Code.
(B) If applicable, the contractor is licensed in accordance with
Chapter 9 (commencing with Section 7000) of the Business and
Professions Code.
(C) The contractor does not have any delinquent liability to an
employee or the state for any assessment of back wages or related
damages, interest, fines, or penalties pursuant to any final
judgment, order, or determination by a court or any federal, state,
or local administrative agency, including a confirmed arbitration
award. However, for purposes of this paragraph, the contractor shall
not be disqualified for any judgment, order, or determination that is
under appeal, provided that the contractor has secured the payment
of any amount eventually found due through a bond or other
appropriate means.
(D) The contractor is not currently debarred under Section 1777.1
or under any other federal or state law providing for the debarment
of contractors from public works.
(E) The contractor has not bid on a public works contract, been
listed in a bid proposal, or engaged in the performance of a contract
for public works without being lawfully registered in accordance
with this section, within the preceding 12 months or since the
effective date of the requirements set forth in subdivision (e),
whichever is earlier. If a contractor is found to be in violation of
the requirements of this paragraph, the period of disqualification
shall be waived if both of the following are true:
(i) The contractor has not previously been found to be in
violation of the requirements of this paragraph within the preceding
12 months.
(ii) The contractor pays an additional nonrefundable penalty
registration fee of two thousand dollars ($2,000).
(b) Fees received pursuant to this section shall be deposited in
the State Public Works Enforcement Fund established by Section 1771.3
and shall be used only for the purposes specified in that section.
(c) A contractor who fails to pay the renewal fee required under
paragraph (1) of subdivision (a) on or before the expiration of any
prior period of registration shall be prohibited from bidding on or
engaging in the performance of any contract for public work until
once again registered pursuant to this section. If the failure to pay
the renewal fee was inadvertent, the contractor may renew its
registration retroactively by paying an additional nonrefundable
penalty renewal fee equal to the amount of the renewal fee within 90
days of the due date of the renewal fee.
(d) If, after a body awarding a contract accepts the contractor's
bid or awards the contract, the work covered by the bid or contract
is determined to be a public work to which Section 1771 applies,
either as the result of a determination by the director pursuant to
Section 1773.5 or a court decision, the requirements of this section
shall not apply, subject to the following requirements:
(1) The body that awarded the contract failed, in the bid
specification or in the contract documents, to identify as a public
work that portion of the work that the determination or decision
subsequently classifies as a public work.
(2) Within 20 days following service of notice on the awarding
body of a determination by the Director of Industrial Relations
pursuant to Section 1773.5 or a decision by a court that the contract
was for public work as defined in this chapter, the contractor and
any subcontractors are registered under this section or are replaced
by a contractor or subcontractors who are registered under this
section.
(3) The requirements of this section shall apply prospectively
only to any subsequent bid, bid proposal, contract, or work performed
after the awarding body is served with notice of the determination
or decision referred to in paragraph (2) of this subdivision.
(e) The requirements of this section shall apply to any bid
proposal submitted on or after March 1, 2015, and any contract for
public work, as defined in this chapter, entered into on or after
April 1, 2015.
SEC. 63. Section 1771.1 is added to the
Labor Code , to read:
1771.1. (a) A contractor or subcontractor shall not be qualified
to bid on, be listed in a bid proposal, subject to the requirements
of Section 4104 of the Public Contract Code, or engage in the
performance of any contract for public work, as defined in this
chapter, unless currently registered and qualified to perform public
work pursuant to Section 1725.5. It is not a violation of this
section for an unregistered contractor to submit a bid that is
authorized by Section 7029.1 of the Business and Professions Code or
by Section 10164 or 20103.5 of the Public Contract Code, provided the
contractor is registered to perform public work pursuant to Section
1725.5 at the time the contract is awarded.
(b) Notice of the requirement described in subdivision (a) shall
be included in all bid invitations and public works contracts, and a
bid shall not be accepted nor any contract or subcontract entered
into without proof of the contractor or subcontractor's current
registration to perform public work pursuant to Section 1725.5.
(c) An inadvertent error in listing a subcontractor who is not
registered pursuant to Section 1725.5 in a bid proposal shall not be
grounds for filing a bid protest or grounds for considering the bid
nonresponsive, provided that any of the following apply:
(1) The subcontractor is registered prior to the bid opening.
(2) Within 24 hours after the bid opening, the subcontractor is
registered and has paid the penalty registration fee specified in
subparagraph (E) of paragraph (2) of subdivision (a) of Section
1725.5.
(3) The subcontractor is replaced by another registered
subcontractor pursuant to Section 4107 of the Public Contract Code.
(d) Failure by a subcontractor to be registered to perform public
work as required by subdivision (a) shall be grounds under Section
4107 of the Public Contract Code for the contractor, with the consent
of the awarding authority, to substitute a subcontractor who is
registered to perform public work pursuant to Section 1725.5 in place
of the unregistered subcontractor.
(e) The department shall maintain on its Internet Web site a list
of contractors who are currently registered to perform public work
pursuant to Section 1725.5.
(f) A contract entered into with any contractor or subcontractor
in violation of subdivision (a) shall be subject to cancellation,
provided that a contract for public work shall not be unlawful, void,
or voidable solely due to the failure of the awarding body,
contractor, or any subcontractor to comply with the requirements of
Section 1725.5 or this section.
(g) This section shall apply to any bid proposal submitted on or
after March 1, 2015, and any contract for public work entered into on
or after April 1, 2015.
SE C. 64. Section 1771.3 of the
Labor Code is repealed.
1771.3. (a) (1) The Department of Industrial Relations shall
monitor and enforce compliance with applicable prevailing wage
requirements for any public works project paid for in whole or part
out of public funds, within the meaning of subdivision (b) of Section
1720, that are derived from bonds issued by the state, and shall
charge each awarding body for the reasonable and directly related
costs of monitoring and enforcing compliance with the prevailing wage
requirements on each project.
(2) (A) The State Public Works Enforcement Fund is hereby created
as a special fund in the State Treasury. All moneys received by the
department pursuant to this section shall be deposited in the fund.
Notwithstanding Section 13340 of the Government Code, all moneys in
the fund shall be continuously appropriated to the Department of
Industrial Relations, to monitor and enforce compliance with the
applicable prevailing wage requirements on public works projects paid
for in whole or part out of public funds, within the meaning of
subdivision (b) of Section 1720, that are derived from bonds issued
by the state and other projects for which the department provides
prevailing wage monitoring and enforcement activities and for which
it is to be reimbursed by the awarding body, and shall not be used or
borrowed for any other purpose.
(B) Notwithstanding any other law, upon order of the Director of
Finance, a loan in the amount of four million three hundred thousand
dollars ($4,300,000) shall be provided from the Uninsured Employers
Benefit Trust Fund to the State Public Works Enforcement Fund to meet
the startup needs of the Labor Compliance Monitoring Unit.
(3) The Director of Industrial Relations shall adopt regulations
implementing this section, specifying the activities, including, but
not limited to, monthly review, and audit if appropriate, of payroll
records, which the department will undertake to monitor and enforce
compliance with applicable prevailing wage requirements on public
works projects paid for in whole or part out of public funds, within
the meaning of subdivision (b) of Section 1720, that are derived from
bonds issued by the state. The department, with the approval of the
Director of Finance, shall determine the rate, which the department
may from time to time amend, that the department will charge to
recover the reasonable and directly related costs of performing the
monitoring and enforcement services for public works projects. The
amount of bond funds utilized by an awarding body to pay the
department's fee shall not exceed one-fourth of 1 percent of the
state bond proceeds used for the public works projects, with any
other remaining costs of monitoring and enforcing compliance to be
paid by the awarding body from other funds authorized to be used to
finance the project.
(4) The reasonable and directly related costs of monitoring and
enforcing compliance with the prevailing wage requirements on a
public works project incurred by the department in accordance with
this section are payable by the awarding body of the public works
project as a cost of construction. Notwithstanding any other
provision of law, but subject to any limitations or restrictions of
the bond act, the board, commission, department, agency, or official
responsible for the allocation of bond proceeds from the bond funds
shall consider and provide for amounts in support of the costs when
allocating or approving expenditures of bond proceeds for the
construction of the authorized project. The awarding body may elect
not to receive or expend amounts from bond proceeds to pay the costs
of the project; however, that election does not relieve the awarding
body from reimbursing the Department of Industrial Relations from
other funding sources for monitoring and enforcing prevailing wage
requirements on the project pursuant to this section or any other
applicable provision of law. The department shall annually provide
information, as specified in regulations, to assist an awarding body
to reasonably estimate the annual cost of monitoring and enforcing
compliance.
(b) Paragraph (1) of subdivision (a) shall not apply to any
contract for a public works project paid for in whole or part out of
public funds, within the meaning of subdivision (b) of Section 1720,
that are derived from bonds issued by the state if the contract was
awarded under any of the following conditions:
(1) The contract was awarded prior to the effective date of
implementing regulations adopted by the department pursuant to
paragraph (3) of subdivision (a).
(2) The contract was awarded on or after the effective date of the
regulations described in paragraph (1), if the awarding body had
previously initiated a labor compliance program approved by the
department for some or all of its public works projects and had not
contracted with a third party to conduct such program, and requests
and receives approval from the department to continue to operate its
existing labor compliance program for its public works projects paid
for in whole or part out of public funds, within the meaning of
subdivision (b) of Section 1720, that are derived from bonds issued
by the state, in place of the department monitoring and enforcing
compliance on projects pursuant to subdivision (a).
(3) The contract is awarded on or after the effective date of the
regulations described in paragraph (1), if the awarding body has
entered into a collective bargaining agreement that binds all of the
contractors performing work on the project and that includes a
mechanism for resolving disputes about the payment of wages.
(c) This section shall not apply to public works projects subject
to Section 75075 of the Public Resources Code.
SEC. 65. Section 1771.3 is added to the
Labor Code , to read:
1771.3. (a) The State Public Works Enforcement Fund is hereby
created as a special fund in the State Treasury to be available upon
appropriation of the Legislature. All registration fees collected
pursuant to Section 1725.5 and any other moneys as are designated by
statute or order shall be deposited in the fund for the purposes
specified in subdivision (b).
(b) Moneys in the State Public Works Enforcement Fund shall be
used only for the following purposes:
(1) The reasonable costs of administering the registration of
contractors and subcontractors to perform public work pursuant to
Section 1725.5.
(2) The costs and obligations associated with the administration
and enforcement of the requirements of this chapter by the Department
of Industrial Relations.
(3) The monitoring and enforcement of any requirement of this code
by the Labor Commissioner on a public works project or in connection
with the performance of public work as defined pursuant to this
chapter.
(c) The annual contractor registration renewal fee specified in
subdivision (a) of Section 1725.5, and any adjusted application or
renewal fee, shall be set in amounts that are sufficient to support
the annual appropriation approved by the Legislature for the State
Public Works Enforcement Fund and not result in a fund balance
greater than 25 percent of the appropriation. Any yearend balance in
the fund greater than 25 percent of the appropriation shall be
applied as a credit when determining any fee adjustments for the
subsequent fiscal year.
(d) To provide adequate cashflow for the purposes specified in
subdivision (b), the Director of Finance, with the concurrence of the
Secretary of the Labor and Workforce Development Agency, may approve
a short-term loan each fiscal year from the Labor and Workforce
Development Fund to the State Public Works Enforcement Fund.
(1) The maximum amount of the annual loan allowable may be up to,
but shall not exceed 50 percent of the appropriation authority of the
State Public Works Enforcement Fund in the same year in which the
loan was made.
(2) For the purposes of this section, a "short-term loan" is a
transfer that is made subject to both of the following conditions:
(A) Any amount loaned is to be repaid in full during the same
fiscal year in which the loan was made, except that repayment may be
delayed until a date not more than 30 days after the date of
enactment of the annual Budget Act for the subsequent fiscal year.
(B) Loans shall be repaid whenever the funds are needed to meet
cash expenditure needs in the loaning fund or account.
SEC. 66. Section 1771.4 is added to the
Labor Code , to read:
1771.4. (a) All of the following are applicable to all public
works projects that are otherwise subject to the requirements of this
chapter:
(1) The call for bids and contract documents shall specify that
the project is subject to compliance monitoring and enforcement by
the Department of Industrial Relations.
(2) The awarding body shall post or require the prime contractor
to post job site notices, as prescribed by regulation.
(3) Each contractor and subcontractor shall furnish the records
specified in Section 1776 directly to the Labor Commissioner, in the
following manner:
(A) At least monthly or more frequently if specified in the
contract with the awarding body.
(B) In a format prescribed by the Labor Commissioner.
(4) The department shall undertake those activities it deems
necessary to monitor and enforce compliance with prevailing wage
requirements.
(b) The Labor Commissioner may exempt a public works project from
compliance with all or part of the requirements of subdivision (a) of
this section if either of the following occurs:
(1) The awarding body has enforced an approved labor compliance
program, as defined in Section 1771.5, on all public works projects
under its authority, except those deemed exempt pursuant to
subdivision (a) of Section 1771.5, continuously since December 31,
2011.
(2) The awarding body has entered into a collective bargaining
agreement that binds all contractors performing work on the project
and that includes a mechanism for resolving disputes about the
payment of wages.
(c) (1) The requirements of paragraph (1) of subdivision (a) shall
only apply to contracts for public works projects awarded on or
after January 1, 2015.
(2) The requirements of paragraph (3) of subdivision (a) shall
only apply to the following projects:
(A) Projects that were subject to a requirement to furnish records
to the Compliance Monitoring Unit pursuant to Section 16461 of Title
8 of the California Code of Regulations, prior to the effective date
of this section.
(B) Projects for which the initial contract is awarded on or after
April 1, 2015.
(C) Any other ongoing project in which the Labor Commissioner
directs the contractors or subcontractors on the project to furnish
records in accordance with paragraph (3) of subdivision (a).
(D) All projects, whether new or ongoing, on or after January 1,
2016.
SEC. 67. Section 1771.5 of the Labor
Code is amended to read:
1771.5. (a) Notwithstanding Section 1771, an awarding body may
choose not to require the payment of the general prevailing rate of
per diem wages or the general prevailing rate of per diem wages for
holiday and overtime work for any public works project of twenty-five
thousand dollars ($25,000) or less when the project is for
construction work, or for any public works project of fifteen
thousand dollars ($15,000) or less when the project is for
alteration, demolition, repair, or maintenance work, if the awarding
body elects to either:
(1) Initiate and
has elected to initiate and has been approved by the
Director of Industrial Relations to enforce a labor compliance
program pursuant to subdivision (b) for every public works project
under the authority of the awarding body as described in
subdivision (e). body.
(2) Reimburse the Department of Industrial Relations for the cost
of monitoring and enforcing compliance with prevailing wage
requirements for every public works project of the awarding body as
described in subdivision (f).
(b) For purposes of this section, a labor compliance program shall
include, but not be limited to, the following requirements:
(1) All bid invitations and public works contracts shall contain
appropriate language concerning the requirements of this chapter.
(2) A prejob conference shall be conducted with the contractor and
subcontractors to discuss federal and state labor law requirements
applicable to the contract.
(3) Project contractors and subcontractors shall maintain and
furnish, at a designated time, a certified copy of each weekly
payroll containing a statement of compliance signed under penalty of
perjury.
(4) The awarding body shall review, and, if appropriate, audit
payroll records to verify compliance with this chapter.
(5) The awarding body shall withhold contract payments when
payroll records are delinquent or inadequate.
(6) The awarding body shall withhold contract payments equal to
the amount of underpayment and applicable penalties when, after
investigation, it is established that underpayment has occurred.
(7) The awarding body shall comply with any other prevailing wage
monitoring and enforcement activities that are required to be
conducted by labor compliance programs by the Department of
Industrial Relations.
(c) For purposes of this chapter, "labor compliance program" means
a labor compliance program that is approved, as specified in state
regulations, by the Director of Industrial Relations.
(d) For purposes of this chapter, the Director of Industrial
Relations may revoke the approval of a labor compliance program in
the manner specified in state regulations.
(e) An awarding body that elects to use a labor compliance program
pursuant to subdivision (a) shall use the labor compliance program
for all contracts for public works projects awarded prior to the
effective date of the regulations adopted by the department as
specified in subdivision (g). For contracts for public works projects
awarded on or after the effective date of regulations adopted by the
department as specified in subdivision (g), the awarding body may
also elect to continue operating an existing previously approved
labor compliance program in lieu of reimbursing the Department of
Industrial Relations for the cost of monitoring and enforcing
compliance with prevailing wage requirements on the awarding body's
public works projects if it has not contracted with a third party to
conduct its labor compliance program and if it requests and receives
approval from the department to continue its existing program.
(f) An awarding body that elects to reimburse the department for
the cost of monitoring and enforcing compliance with prevailing wage
requirements for public works projects of the awarding body, pursuant
to subdivision (a), shall, for all of its contracts for public works
projects awarded on or after the effective date of the regulations
adopted by the department as specified in subdivision (g) do all of
the following:
(1) Ensure that all bid invitations and public works contracts
contain appropriate language concerning the requirements of this
chapter.
(2) Conduct a prejob conference with the contractor and
subcontractor to discuss federal and state labor law requirements
applicable to the contract.
(3) Enter into an agreement with the department to reimburse the
department for its costs of performing the service of monitoring and
enforcing compliance with applicable prevailing wage requirements on
the awarding body's projects.
(g) The Department of Industrial Relations shall adopt regulations
implementing this section specifying the activities that the
department shall undertake to monitor and enforce compliance with the
prevailing wage requirements on the public works projects,
including, but not limited to, monthly review, and audit if
appropriate, of payroll records.
(h) (1) The Department of Industrial Relations shall, in
accordance with paragraphs (3) and (4) of subdivision (a) of Section
1771.3, determine the rate, which the department may from time to
time amend, that the department will charge for reimbursement from an
awarding body for the reasonable and directly related costs of
performing the specified monitoring and enforcement services for
public works projects.
(2) Notwithstanding paragraph (1), for public works projects paid
for in whole or part out of public funds, within the meaning of
subdivision (b) of Section 1720, that are derived from bonds issued
by the state, the amount charged by the department shall not exceed
one-fourth of 1 percent of the state bond proceeds used for the
public works project, with any other remaining costs of monitoring
and enforcing compliance to be paid by the awarding body from other
funds authorized to be used to finance the project.
(i) All amounts collected by the Department of Industrial
Relations for its services pursuant to this section shall be
deposited in the State Public Works Enforcement Fund.
SEC. 68. Section 1771.7 of the Labor
Code is amended to read:
1771.7. (a) (1) For contracts specified in subdivision (f), an
awarding body that chooses to use funds derived from either the
Kindergarten-University Public Education Facilities Bond Act of 2002
or the Kindergarten-University Public Education Facilities Bond Act
of 2004 for a public works project, shall initiate and enforce, or
contract with a third party to initiate and enforce, a labor
compliance program, as described in subdivision (b) of Section
1771.5, with respect to that public works project.
(2) If an awarding body described in paragraph (1) chooses to
contract with a third party to initiate and enforce a labor
compliance program for a project described in paragraph (1), that
third party shall not review the payroll records of its own employees
or the employees of its subcontractors, and the awarding body or an
independent third party shall review these payroll records for
purposes of the labor compliance program.
(b) This section applies to public works that commence on or after
April 1, 2003. For purposes of this subdivision, work performed
during the design and preconstruction phases of construction,
including, but not limited to, inspection and land surveying work,
does not constitute the commencement of a public work.
(c) (1) For purposes of this section, if any campus of the
California State University chooses to use the funds described in
subdivision (a), then the "awarding body" is the Chancellor of the
California State University. For purposes of this subdivision, if the
chancellor is required by subdivision (a) to initiate and enforce,
or to contract with a third party to initiate and enforce, a labor
compliance program, then in addition to the requirements described in
subdivision (b) of Section 1771.5, the Chancellor of the California
State University shall review the payroll records on at least a
monthly basis to ensure the awarding body's compliance with the labor
compliance program.
(2) For purposes of this subdivision, if an awarding body
described in subdivision (a) is the University of California or any
campus of that university, and that awarding body is required by
subdivision (a) to initiate and enforce, or to contract with a third
party to initiate and enforce, a labor compliance program, then in
addition to the requirements described in subdivision (b) of Section
1771.5, the payroll records shall be reviewed on at least a monthly
basis to ensure the awarding body's compliance with the labor
compliance program.
(d) (1) An awarding body described in subdivision (a) shall make a
written finding that the awarding body has initiated and enforced,
or has contracted with a third party to initiate and enforce, the
labor compliance program described in subdivision (a).
(2) (A) If an awarding body described in subdivision (a) is a
school district, the governing body of that district shall transmit
to the State Allocation Board, in the manner determined by that
board, a copy of the finding described in paragraph (1).
(B) The State Allocation Board shall not release the funds
described in subdivision (a) to an awarding body that is a school
district until the State Allocation Board has received the written
finding described in paragraph (1).
(C) If the State Allocation Board conducts a postaward audit
procedure with respect to an award of the funds described in
subdivision (a) to an awarding body that is a school district, the
State Allocation Board shall verify, in the manner determined by that
board, that the school district has complied with the requirements
of this subdivision.
(3) If an awarding body described in subdivision (a) is a
community college district, the Chancellor of the California State
University, or the office of the President of the University of
California or any campus of the University of California, that
awarding body shall transmit, in the manner determined by the
Director of Industrial Relations, a copy of the finding described in
paragraph (1) to the director of that department, or the director of
any successor agency that is responsible for the oversight of
employee wage and employee work hours laws.
(e) Because the reasonable costs directly related to monitoring
and enforcing compliance with the prevailing wage requirements are
necessary oversight activities, integral to the cost of construction
of the public works projects, notwithstanding Section 17070.63 of the
Education Code, the grant amounts as described in Chapter 12.5
(commencing with Section 17070.10) of Part 10 of Division 1 of Title
1 of the Education Code for the costs of a new construction or
modernization project shall include the state's share of the
reasonable and directly related costs of the labor compliance program
used to monitor and enforce compliance with prevailing wage
requirements.
(f) This section shall only apply to contracts awarded prior to
the effective date of regulations adopted by the Department
of Industrial Relations pursuant to paragraph (3) of subdivision (a)
of Section 1771.3. January 1, 2012.
SEC. 69. Section 1773.3 of the Labor
Code is repealed.
1773.3. An awarding agency whose public works contract falls
within the jurisdiction of Section 1771.3, 1771.5, or 1777.5, or any
other statute providing for the payment of fees to the Department of
Industrial Relations for enforcing prevailing wage requirements on
that project, shall, within five days of the award, send a copy of
the award to the department. In lieu of responding to any specific
request for contract award information, the department my make such
information available for public review by posting on its Internet
Web site. Within five days of a finding of any discrepancy regarding
the ratio of apprentices to journeymen, pursuant to the certificated
fixed number of apprentices to journeymen, the awarding agency shall
notify the Division of Labor Standards Enforcement.
SEC. 70. Section 1773.3 is added to the
Labor Code , to read:
1773.3. (a) (1) An awarding agency shall provide notice to the
Department of Industrial Relations of any public works contract
subject to the requirements of this chapter, within five days of the
award.
(2) The notice shall be transmitted electronically in a format
specified by the department and shall include the name of the
contractor, any subcontractor listed on the successful bid, the bid
and contract award dates, the contract amount, the estimated start
and completion dates, job site location, and any additional
information the department specifies that aids in the administration
and enforcement of this chapter.
(b) In lieu of responding to any specific request for contract
award information, the department may make the information provided
by awarding bodies pursuant to this section available for public
review on its Internet Web site.
SEC. 71. Section 1776 of the Labor Code
is amended to read:
1776. (a) Each contractor and subcontractor shall keep accurate
payroll records, showing the name, address, social security number,
work classification, straight time and overtime hours worked each day
and week, and the actual per diem wages paid to each journeyman,
apprentice, worker, or other employee employed by him or her in
connection with the public work. Each payroll record shall contain or
be verified by a written declaration that it is made under penalty
of perjury, stating both of the following:
(1) The information contained in the payroll record is true and
correct.
(2) The employer has complied with the requirements of Sections
1771, 1811, and 1815 for any work performed by his or her employees
on the public works project.
(b) The payroll records enumerated under subdivision (a) shall be
certified and shall be available for inspection at all reasonable
hours at the principal office of the contractor on the following
basis:
(1) A certified copy of an employee's payroll record shall be made
available for inspection or furnished to the employee or his or her
authorized representative on request.
(2) A certified copy of all payroll records enumerated in
subdivision (a) shall be made available for inspection or furnished
upon request to a representative of the body awarding the contract
and the Division of Labor Standards Enforcement of the Department of
Industrial Relations.
(3) A certified copy of all payroll records enumerated in
subdivision (a) shall be made available upon request by the public
for inspection or for copies thereof. However, a request by the
public shall be made through either the body awarding the contract or
the Division of Labor Standards Enforcement. If the requested
payroll records have not been provided pursuant to paragraph (2), the
requesting party shall, prior to being provided the records,
reimburse the costs of preparation by the contractor, subcontractors,
and the entity through which the request was made. The public may
not be given access to the records at the principal office of the
contractor.
(c) The Unless required to be
furnished directly to the Labor Commissioner in accordance with
paragraph (3) of subdivision (a) of Section 1771.4, the
certified payroll records shall be on forms provided by the Division
of Labor Standards Enforcement or shall contain the same information
as the forms provided by the division. The payroll records may
consist of printouts of payroll data that are maintained as computer
records, if the printouts contain the same information as the forms
provided by the division and the printouts are verified in the manner
specified in subdivision (a).
(d) A contractor or subcontractor shall file a certified copy of
the records enumerated in subdivision (a) with the entity that
requested the records within 10 days after receipt of a written
request.
(e) Except as provided in subdivision (f), any copy of records
made available for inspection as copies and furnished upon request to
the public or any public agency by the awarding body or the Division
of Labor Standards Enforcement shall be marked or obliterated to
prevent disclosure of an individual's name, address, and social
security number. The name and address of the contractor awarded the
contract or the subcontractor performing the contract shall not be
marked or obliterated. Any copy of records made available for
inspection by, or furnished to, a multiemployer Taft-Hartley trust
fund (29 U.S.C. Sec. 186(c)(5)) that requests the records for the
purposes of allocating contributions to participants shall be marked
or obliterated only to prevent disclosure of an individual's full
social security number, but shall provide the last four digits of the
social security number. Any copy of records made available for
inspection by, or furnished to, a joint labor-management committee
established pursuant to the federal Labor Management Cooperation Act
of 1978 (29 U.S.C. Sec. 175a) shall be marked or obliterated only to
prevent disclosure of an individual's social security number.
(f) (1) Notwithstanding any other provision of law, agencies that
are included in the Joint Enforcement Strike Force on the Underground
Economy established pursuant to Section 329 of the Unemployment
Insurance Code and other law enforcement agencies investigating
violations of law shall, upon request, be provided nonredacted copies
of certified payroll records. Any copies of records or certified
payroll made available for inspection and furnished upon request to
the public by an agency included in the Joint Enforcement Strike
Force on the Underground Economy or to a law enforcement agency
investigating a violation of law shall be marked or redacted to
prevent disclosure of an individual's name, address, and social
security number.
(2) An employer shall not be liable for damages in a civil action
for any reasonable act or omission taken in good faith in compliance
with this subdivision.
(g) The contractor shall inform the body awarding the contract of
the location of the records enumerated under subdivision (a),
including the street address, city, and county, and shall, within
five working days, provide a notice of a change of location and
address.
(h) The contractor or subcontractor has 10 days in which to comply
subsequent to receipt of a written notice requesting the records
enumerated in subdivision (a). In the event that the contractor or
subcontractor fails to comply within the 10-day period, he or she
shall, as a penalty to the state or political subdivision on whose
behalf the contract is made or awarded, forfeit one hundred dollars
($100) for each calendar day, or portion thereof, for each worker,
until strict compliance is effectuated. Upon the request of the
Division of Labor Standards Enforcement, these penalties shall be
withheld from progress payments then due. A contractor is not subject
to a penalty assessment pursuant to this section due to the failure
of a subcontractor to comply with this section.
(i) The body awarding the contract shall cause to be inserted in
the contract stipulations to effectuate this section.
(j) The director shall adopt rules consistent with the California
Public Records Act (Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code) and the Information
Practices Act of 1977 (Title 1.8 (commencing with Section 1798) of
Part 4 of Division 3 of the Civil Code) governing the release of
these records, including the establishment of reasonable fees to be
charged for reproducing copies of records required by this section.
SEC. 72. Section 179 of the Military
and Veterans Code is amended to read:
179. (a) The Adjutant General shall establish a California State
Military Museum and Resource Center as a repository for military
artifacts, memorabilia, equipment, documents, and other items
relating to the military history of California, and to the history of
the California National Guard, in accordance with applicable
regulations of the United States Army governing Army museum
activities. The museum shall may
consist of the facility described in the Proclamation of the Governor
dated May 11, 1994, and any branches as may currently exist or may
from time to time be created throughout the state. Each facility
shall be deemed to be an armory within the meaning of Section 430.
(b) The Adjutant General shall may
enter into an operating agreement
agreements with the California State
Military Museum Foundation, formerly known as the California National
Guard Historical Society, an existing California nonprofit public
benefit corporation that is tax exempt under Section 501(c)(3) of the
Internal Revenue Code. Under the operating agreement with the
Adjutant General, the foundation shall operate the California State
Military Museum and Resource Center in coordination with the
California State Military Reserve's California Center for Military
History. The foundation shall develop, administer, interpret, and
manage museum historical programs and related public services, and
acquire and manage funding for museum programs and services.
nonprofit historical foundations, military museums,
historical societies, or other entities to conduct museum activities
pursuant to the rules and regulations promulgated hereunder.
(c) Volunteers, docents, members of the California State Military
Reserve, or others working with or for the California State Military
Museum Foundation, and Resource Center,
for purposes consistent with the mission of the organization, shall
be considered volunteers under Sections 3118 and 3119 of the
Government Code and Section 3363.5 of the Labor Code.
(d) The Board of Directors of the California State Military Museum
Foundation shall include the Adjutant General, or the Assistant
Adjutant General, or any Deputy Adjutant General designated by the
Adjutant General, as an ex officio voting member of the board. The
board of directors of the foundation shall be the governing authority
for operations funded through moneys received by the foundation. The
board of directors of the foundation shall, no later than October 15
of each year, submit an audit report to the Adjutant General, the
Chair of the Joint Legislative Audit Committee, the Chair of the
Joint Legislative Budget Committee, and the Director of Finance.
(e)
(d) No funds raised or assets acquired by the
foundation an entity described in subdivision (b)
shall be used for purposes inconsistent with support of the
museum.
(f)
(e) The Board of Directors of the California
State Military Museum Foundation Military Department
shall, no later than March 15 of each year, submit a business
plan for the following fiscal year to the Adjutant General,
the Director of Finance, Finance
and the Chair of the Joint Legislative Budget Committee for
review and comment. The board of directors
Military Department shall also submit, not less than 30 days
prior to adoption, any proposed formal amendments to the business
plan to the Adjutant General, the Director of
Finance, Finance and the Chair of the
Joint Legislative Budget Committee for review and comment.
(g)
(f) (1) The Adjutant General or the California
State Military Museum Foundation an entity described
in subdivision (b) may solicit, receive, and administer
donations of funds or property for the support and improvement of the
museum. Any grants or donations received may be expended or used for
museum purposes.
(2) Property of historical military significance, not including
real property, that is owned by the state and is determined by the
Adjutant General to be in excess of the needs of the Military
Department, shall be transferred to the museum.
(3) Property determined by the California State Military
Museum Foundation Adjutant General or an entity
described in subdivision (b) to be in excess of the needs of
the museum may be sold, donated, exchanged, or otherwise disposed of,
at its discretion, in a manner appropriate to the historical and
intrinsic value of the property, and the benefits from the
disposition shall inure to the museum. This paragraph does not apply
to property held in trust for the Controller pursuant to Section 1563
of the Code of Civil Procedure.
(h)
(g) The Adjutant General or the California
State Military Museum Foundation an entity described
in subdivision (b) may solicit and receive firearms and other
weaponry confiscated by or otherwise in the possession of law
enforcement officers as donations to the museum if he or she deems
them to be of historical or military interest.
(i)
(h) The Adjutant General shall, in cooperation with
the California State Military Museum Foundation,
an entity described in subdivision (b), conduct a study of
the future needs of the National Guard to preserve, display, and
interpret artifacts, documents, photographs, films, literature, and
other items relating to the history of the military in California.
(j)
(i) (1) The California State Military Museum
Foundation An entity described in subdivision (b)
may enter into agreements with other military museums in California,
including, but not limited to, the Legion of Valor Museum, to loan
property that is not real property and that is under the direct
control of the foundation.
(2) The California State Military Museum Foundation
An entity described in subdivision (b) may enter
into agreements with other military museums in California to loan
property held in trust for the Controller pursuant to Section 1563 of
the Code of Civil Procedure.
SEC. 73. Section 1485.5 of the Penal
Code is amended to read:
1485.5. (a) If the district attorney or Attorney General
stipulates to or does not contest the factual allegations underlying
one or more of the grounds for granting a writ of habeas corpus or a
motion to vacate a judgment, the facts underlying the basis for the
court's ruling or order shall be binding on the Attorney General, the
factfinder, and the California Victim Compensation and Government
Claims Board.
(b) The district attorney shall provide notice to the Attorney
General prior to entering into a stipulation of facts that will be
the basis for the granting of a writ of habeas corpus or a motion to
vacate a judgment.
(c) The express factual findings made by the court, including
credibility determinations, in considering a petition for habeas
corpus, a motion to vacate judgment pursuant to Section 1473.6, or an
application for a certificate of factual innocence, shall be binding
on the Attorney General, the factfinder, and the California Victim
Compensation and Government Claims Board.
(d) For the purposes of this section, "express factual findings"
are findings established as the basis for the court's ruling or
order.
(e) For purposes of this section, "court" is defined as a state or
federal court.
SEC. 74. Section 13835.7 of the Penal
Code is amended to read:
13835.7. There is in the State Treasury the Victim-Witness
Assistance Fund. Funds appropriated thereto shall be dispensed to the
Office of Emergency Services exclusively for the purposes specified
in this article article, for any other
purpose that supports victims, and for the support of the
centers specified in Section 13837.
SEC. 75. Section 6823 of the Public
Contract Code is repealed.
6823. (a) For contracts for public works projects awarded prior
to the effective date of the regulations adopted by the Department of
Industrial Relations pursuant to subdivision (g) of Section 1771.5
of the Labor Code, a transportation entity authorized to use the
design-build method of procurement shall establish and enforce a
labor compliance program containing the requirements outlined in
Section 1771.5 of the Labor Code or shall contract with a third party
to operate a labor compliance program containing the requirements
outlined in Section 1771.5 of the Labor Code. This requirement shall
not apply to projects where the transportation entity or design-build
entity has entered into any collective bargaining agreement that
binds all of the contractors performing work on the projects.
(b) For contracts for public works projects awarded on or after
the effective date of the regulations adopted by the Department of
Industrial Relations pursuant to subdivision (g) of Section 1771.5 of
the Labor Code, the transportation entity shall reimburse the
Department of Industrial Relations for its reasonable and directly
related costs of performing prevailing wage monitoring and
enforcement on public works projects pursuant to rates established by
the Department of Industrial Relations as set forth in subdivision
(h) of Section 1771.5 of the Labor Code. All moneys collected
pursuant to this subdivision shall be deposited in the State Public
Works Enforcement Fund, created by Section 1771.3 of the Labor Code,
and shall be used only for enforcement of prevailing wage
requirements on those projects.
(c) In lieu of reimbursing the Department of Industrial Relations
for its reasonable and directly related costs of performing
monitoring and enforcement on public works projects, the
transportation entity may either (1) elect to continue operating an
existing previously approved labor compliance program to monitor and
enforce prevailing wage requirements on the project if it has not
contracted with a third party to conduct its labor compliance program
and requests and receives approval from the department to continue
its existing program or (2) enter into a collective bargaining
agreement that binds all of the contractors performing work on the
project and that includes a mechanism for resolving disputes about
the payment of wages.
SEC. 76. Section 6823 is added to the
Public Contract Code , to read:
6823. (a) For contracts for public works projects awarded prior
January 1, 2012, a transportation entity authorized to use the
design-build method of procurement shall establish and enforce a
labor compliance program containing the requirements outlined in
Section 1771.5 of the Labor Code or shall contract with a third party
to operate a labor compliance program containing the requirements
outlined in Section 1771.5 of the Labor Code. This requirement shall
not apply to projects where the transportation entity or design-build
entity has entered into any collective bargaining agreement that
binds all of the contractors performing work on the projects.
(b) For contracts for public works projects awarded on or after
January 1, 2012, the project shall be subject to the requirements of
Section 1771.4 of the Labor Code.
SEC. 76.5. Section 6953 of the Public
Contract Code is repealed.
6953. (a) Except as specified in subdivision (b), the San Diego
Association of Governments shall comply with subdivision (f) of
Section 1771.5 of the Labor Code and shall reimburse the Department
of Industrial Relations for its reasonable and directly related costs
of performing prevailing wage monitoring and enforcement on public
works projects pursuant to rates established by the department as set
forth in subdivision (h) of that section on projects using an
alternative project delivery method under this chapter. All moneys
collected pursuant to this subdivision shall be deposited in the
State Public Works Enforcement Fund, created by Section 1771.3 of the
Labor Code, and shall be used only for enforcement of prevailing
wage requirements on those projects.
(b) In lieu of complying with subdivision (a), the San Diego
Association of Governments may elect to enter into a collective
bargaining agreement that binds all of the contractors performing
work on the project and that includes a mechanism for resolving
disputes about the payment of wages.
SEC. 77. Section 6953 is added to the
Public Contract Code , to read:
6953. Any public works project that is contracted for pursuant to
this chapter shall be subject to the requirements of Section 1771.4
of the Labor Code.
SEC. 78. Section 20133 of the Public
Contract Code is amended to read:
20133. (a) A county, with approval of the board of supervisors,
may utilize an alternative procedure for bidding on construction
projects in the county in excess of two million five hundred thousand
dollars ($2,500,000) and may award the project using either the
lowest responsible bidder or by best value.
(b) (1) It is the intent of the Legislature to enable counties to
utilize design-build for buildings and county sanitation wastewater
treatment facilities. It is not the intent of the Legislature to
authorize this procedure for other infrastructure, including, but not
limited to, streets and highways, public rail transit, or water
resources facilities and infrastructures.
(2) The Legislature also finds and declares that utilizing a
design-build contract requires a clear understanding of the roles and
responsibilities of each participant in the design-build process.
(3) (A) For contracts for public works projects awarded prior to
the effective date of regulations adopted by the Department
of Industrial Relations pursuant to subdivision (g) of Section 1771.5
of the Labor Code, January 1, 2012, if the
board of supervisors elects to proceed under this section, the board
of supervisors shall establish and enforce a labor compliance program
containing the requirements outlined in Section 1771.5 of the Labor
Code, or it shall contract with a third party to operate a labor
compliance program containing the requirements outlined in Section
1771.5 of the Labor Code. This requirement shall not apply to any
projects where the county or the design-build entity has entered into
a collective bargaining agreement that binds all of the contractors
performing work on the projects.
(B) For contracts for public works projects awarded on or after
the effective date of regulations adopted by the Department
of Industrial Relations pursuant to subdivision (g) of Section 1771.5
of the Labor Code, the board of supervisors shall reimburse the
department for its reasonable and directly related costs of
performing prevailing wage monitoring and enforcement on public works
projects pursuant to rates established by the department as set
forth in subdivision (h) of Section 1771.5 of the Labor Code. All
moneys collected pursuant to this paragraph shall be deposited in the
State Public Works Enforcement Fund created by Section 1771.3 of the
Labor Code, and shall be used only for enforcement of prevailing
wage requirements on those projects. January 1, 2012,
the project shall be subject to the requirements of Section 1771.4 of
the Labor Code.
(C) In lieu of reimbursing the Department of Industrial Relations
for its reasonable and directly related costs of performing
monitoring and enforcement on public works projects, the board of
supervisors may elect to continue operating an existing previously
approved labor compliance program to monitor and enforce prevailing
wage requirements on the project if it has either not contracted with
a third party to conduct its labor compliance program and requests
and receives approval from the department to continue its existing
program or it enters into a collective bargaining agreement that
binds all of the contractors performing work on the project and that
includes a mechanism for resolving disputes about the payment of
wages.
(c) As used in this section:
(1) "Best value" means a value determined by objective criteria
related to price, features, functions, and life-cycle costs.
(2) "Design-build" means a procurement process in which both the
design and construction of a project are procured from a single
entity.
(3) "Design-build entity" means a partnership, corporation, or
other legal entity that is able to provide appropriately licensed
contracting, architectural, and engineering services as needed
pursuant to a design-build contract.
(4) "Project" means the construction of a building and
improvements directly related to the construction of a building, and
county sanitation wastewater treatment facilities, but does not
include the construction of other infrastructure, including, but not
limited to, streets and highways, public rail transit, or water
resources facilities and infrastructure.
(d) Design-build projects shall progress in a four-step process,
as follows:
(1) (A) The county shall prepare a set of documents setting forth
the scope of the project. The documents may include, but are not
limited to, the size, type, and desired design character of the
public improvement, performance specifications covering the quality
of materials, equipment, and workmanship, preliminary plans or
building layouts, or any other information deemed necessary to
describe adequately the county's needs. The performance
specifications and any plans shall be prepared by a design
professional who is duly licensed and registered in California.
(B) Any architect or engineer retained by the county to assist in
the development of the project-specific documents shall not be
eligible to participate in the preparation of a bid with any
design-build entity for that project.
(2) (A) Based on the documents prepared in paragraph (1), the
county shall prepare a request for proposals that invites interested
parties to submit competitive sealed proposals in the manner
prescribed by the county. The request for proposals shall include,
but is not limited to, the following elements:
(i) Identification of the basic scope and needs of the project or
contract, the expected cost range, and other information deemed
necessary by the county to inform interested parties of the
contracting opportunity, to include the methodology that will be used
by the county to evaluate proposals and specifically if the contract
will be awarded to the lowest responsible bidder.
(ii) Significant objective factors that the county reasonably
expects to consider in evaluating proposals, including cost or price
and all nonprice-related factors.
(iii) The relative importance of weight assigned to each of the
factors identified in the request for proposals.
(B) With respect to clause (iii) of subparagraph (A), if a
nonweighted system is used, the agency shall specifically disclose
whether all evaluation factors other than cost or price when combined
are:
(i) Significantly more important than cost or price.
(ii) Approximately equal in importance to cost or price.
(iii) Significantly less important than cost or price.
(C) If the county chooses to reserve the right to hold discussions
or negotiations with responsive bidders, it shall so specify in the
request for proposal and shall publish separately or incorporate into
the request for proposal applicable rules and procedures to be
observed by the county to ensure that any discussions or negotiations
are conducted in good faith.
(3) (A) The county shall establish a procedure to prequalify
design-build entities using a standard questionnaire developed by the
county. In preparing the questionnaire, the county shall consult
with the construction industry, including representatives of the
building trades and surety industry. This questionnaire shall require
information, including, but not limited to, all of the following:
(i) If the design-build entity is a partnership, limited
partnership, or other association, a listing of all of the partners,
general partners, or association members known at the time of bid
submission who will participate in the design-build contract,
including, but not limited to, mechanical subcontractors.
(ii) Evidence that the members of the design-build entity have
completed, or demonstrated the experience, competency, capability,
and capacity to complete, projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the design
and construction of the project, as well as a financial statement
that assures the county that the design-build entity has the capacity
to complete the project.
(iii) The licenses, registration, and credentials required to
design and construct the project, including information on the
revocation or suspension of any license, credential, or registration.
(iv) Evidence that establishes that the design-build entity has the
capacity to obtain all required payment and performance bonding,
liability insurance, and errors and omissions insurance.
(v) Any prior serious or willful violation of the California
Occupational Safety and Health Act of 1973, contained in Part 1
(commencing with Section 6300) of Division 5 of the Labor Code, or
the federal Occupational Safety and Health Act of 1970 (Public Law
91-596), settled against any member of the design-build entity, and
information concerning workers' compensation experience history and
worker safety program.
(vi) Information concerning any debarment, disqualification, or
removal from a federal, state, or local government public works
project. Any instance in which an entity, its owners, officers, or
managing employees submitted a bid on a public works project and were
found to be nonresponsive, or were found by an awarding body not to
be a responsible bidder.
(vii) Any instance in which the entity, or its owners, officers,
or managing employees, defaulted on a construction contract.
(viii) Any violations of the Contractors' State License Law
(Chapter 9 (commencing with Section 7000) of Division 3 of the
Business and Professions Code), excluding alleged violations of
federal or state law including the payment of wages, benefits,
apprenticeship requirements, or personal income tax withholding, or
of Federal Insurance Contributions Act (FICA; 26 U.S.C. Sec. 3101 et
seq.) withholding requirements settled against any member of the
design-build entity.
(ix) Information concerning the bankruptcy or receivership of any
member of the design-build entity, including information concerning
any work completed by a surety.
(x) Information concerning all settled adverse claims, disputes,
or lawsuits between the owner of a public works project and any
member of the design-build entity during the five years preceding
submission of a bid pursuant to this section, in which the claim,
settlement, or judgment exceeds fifty thousand dollars ($50,000).
Information shall also be provided concerning any work completed by a
surety during this period.
(xi) In the case of a partnership or an association that is not a
legal entity, a copy of the agreement creating the partnership or
association and specifying that all partners or association members
agree to be fully liable for the performance under the design-build
contract.
(xii) (I) Any instance in which the entity, or any of its members,
owners, officers, or managing employees was, during the five years
preceding submission of a bid pursuant to this section, determined by
a court of competent jurisdiction to have submitted, or legally
admitted for purposes of a criminal plea to have submitted either of
the following:
(ia) Any claim to any public agency or official in violation of
the federal False Claims Act (31 U.S.C. Sec. 3729 et seq.).
(ib) Any claim to any public official in violation of the
California False Claims Act (Article 9 (commencing with Section
12650) of Chapter 6 of Part 2 of Division 3 of Title 2 of
the Government Code).
(II) Information provided pursuant to this subdivision shall
include the name and number of any case filed, the court in which it
was filed, and the date on which it was filed. The entity may also
provide further information regarding any such instance, including
any mitigating or extenuating circumstances that the entity wishes
the county to consider.
(B) The information required pursuant to this subdivision shall be
verified under oath by the entity and its members in the manner in
which civil pleadings in civil actions are verified. Information that
is not a public record pursuant to the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code) shall not be open to public inspection.
(4) The county shall establish a procedure for final selection of
the design-build entity. Selection shall be based on either of the
following criteria:
(A) A competitive bidding process resulting in lump-sum bids by
the prequalified design-build entities. Awards shall be made to the
lowest responsible bidder.
(B) A county may use a design-build competition based upon best
value and other criteria set forth in paragraph (2). The design-build
competition shall include the following elements:
(i) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposal. However, the following minimum factors shall
each represent at least 10 percent of the total weight of
consideration given to all criteria factors: price, technical design,
and construction expertise, life-cycle costs over 15 years or more,
skilled labor force availability, and acceptable safety record.
(ii) Once the evaluation is complete, the top three responsive
bidders shall be ranked sequentially from the most advantageous to
the least.
(iii) The award of the contract shall be made to the responsible
bidder whose proposal is determined, in writing, to be the most
advantageous.
(iv) Notwithstanding any provision of this code, upon issuance of
a contract award, the county shall publicly announce its award,
identifying the contractor to whom the award is made, along with a
written decision supporting its contract award and stating the basis
of the award. The notice of award shall also include the county's
second and third ranked design-build entities.
(v) For purposes of this paragraph, "skilled labor force
availability" shall be determined by the existence of an agreement
with a registered apprenticeship program, approved by the California
Apprenticeship Council, which has graduated apprentices in each of
the preceding five years. This graduation requirement shall not apply
to programs providing apprenticeship training for any craft that has
been deemed by the Department of Labor and the Department of
Industrial Relations to be an apprenticeable craft in the five years
prior to enactment of this act.
(vi) For purposes of this paragraph, a bidder's "safety record"
shall be deemed "acceptable" if its experience modification rate for
the most recent three-year period is an average of 1.00 or less, and
its average total recordable injury/illness rate and average lost
work rate for the most recent three-year period does not exceed the
applicable statistical standards for its business category or if the
bidder is a party to an alternative dispute resolution system as
provided for in Section 3201.5 of the Labor Code.
(e) (1) Any design-build entity that is selected to design and
build a project pursuant to this section shall possess or obtain
sufficient bonding to cover the contract amount for nondesign
services, and errors and omission insurance coverage sufficient to
cover all design and architectural services provided in the contract.
This section does not prohibit a general or engineering contractor
from being designated the lead entity on a design-build entity for
the purposes of purchasing necessary bonding to cover the activities
of the design-build entity.
(2) Any payment or performance bond written for the purposes of
this section shall be written using a bond form developed by the
county.
(f) All subcontractors that were not listed by the design-build
entity in accordance with clause (i) of subparagraph (A) of paragraph
(3) of subdivision (d) shall be awarded by the design-build entity
in accordance with the design-build process set forth by the county
in the design-build package. All subcontractors bidding on contracts
pursuant to this section shall be afforded the protections contained
in Chapter 4 (commencing with Section 4100) of Part 1. The
design-build entity shall do both of the following:
(1) Provide public notice of the availability of work to be
subcontracted in accordance with the publication requirements
applicable to the competitive bidding process of the county.
(2) Provide a fixed date and time on which the subcontracted work
will be awarded in accordance with the procedure established pursuant
to this section.
(g) Lists of subcontractors, bidders, and bid awards relating to
the project shall be submitted by the design-build entity to the
awarding body within 14 days of the award. These documents are deemed
to be public records and shall be available for public inspection
pursuant to this chapter and Article 1 (commencing with Section 6250)
of Chapter 3.5 of Division 7 of Title 1 of the Government
Code.
(h) The minimum performance criteria and design standards
established pursuant to paragraph (1) of subdivision (d) shall be
adhered to by the design-build entity. Any deviations from those
standards may only be allowed by written consent of the county.
(i) The county may retain the services of a design professional or
construction project manager, or both, throughout the course of the
project in order to ensure compliance with this section.
(j) Contracts awarded pursuant to this section shall be valid
until the project is completed.
(k) Nothing in this section is intended to affect, expand, alter,
or limit any rights or remedies otherwise available at law.
(l) (1) If the county elects to award a project pursuant to this
section, retention proceeds withheld by the county from the
design-build entity shall not exceed 5 percent if a performance and
payment bond, issued by an admitted surety insurer, is required in
the solicitation of bids.
(2) In a contract between the design-build entity and the
subcontractor, and in a contract between a subcontractor and any
subcontractor thereunder, the percentage of the retention proceeds
withheld may not exceed the percentage specified in the contract
between the county and the design-build entity. If the design-build
entity provides written notice to any subcontractor who is not a
member of the design-build entity, prior to or at the time the bid is
requested, that a bond may be required and the subcontractor
subsequently is unable or refuses to furnish a bond to the
design-build entity, then the design-build entity may withhold
retention proceeds in excess of the percentage specified in the
contract between the county and the design-build entity from any
payment made by the design-build entity to the subcontractor.
(m) Each county that elects to proceed under this section and uses
the design-build method on a public works project shall submit to
the Legislative Analyst's Office before September 1, 2013, a report
containing a description of each public works project procured
through the design-build process and completed after November 1,
2009, and before August 1, 2013. The report shall include, but shall
not be limited to, all of the following information:
(1) The type of project.
(2) The gross square footage of the project.
(3) The design-build entity that was awarded the project.
(4) The estimated and actual length of time to complete the
project.
(5) The estimated and actual project costs.
(6) Whether the project was met or altered.
(7) The number and amount of project change orders.
(8) A description of any written protests concerning any aspect of
the solicitation, bid, proposal, or award of the design-build
project, including the resolution of the protests.
(9) An assessment of the prequalification process and criteria.
(10) An assessment of the effect of retaining 5 percent retention
on the project.
(11) A description of the Labor Force Compliance Program and an
assessment of the project impact, where required.
(12) A description of the method used to award the contract. If
best value was the method, the report shall describe the factors used
to evaluate the bid, including the weighting of each factor and an
assessment of the effectiveness of the methodology.
(13) An assessment of the project impact of "skilled labor force
availability."
(14) An assessment of the design-build dollar limits on county
projects. This assessment shall include projects where the county
wanted to use design-build and was precluded by the dollar
limitation. This assessment shall also include projects where the
best value method was not used due to dollar limitations.
(15) An assessment of the most appropriate uses for the
design-build approach.
(n) Any county that elects not to use the authority granted by
this section may submit a report to the Legislative Analyst's Office
explaining why the county elected not to use the design-build method.
(o) On or before January 1, 2014, the Legislative Analyst shall
report to the Legislature on the use of the design-build method by
counties pursuant to this section, including the information listed
in subdivisions (m) and (p). The report may include recommendations
for modifying or extending this section.
(p) The Legislative Analyst shall complete a fact-based analysis
of the use of the design-build method by counties pursuant to this
section, utilizing the information provided pursuant to subdivision
(m) and any independent information provided by the public or
interested parties. The Legislative Analyst shall select a
representative sample of projects under this section and review
available public records and reports, media reports, and related
information in its analysis. The Legislative Analyst shall compile
the information required to be analyzed pursuant to this subdivision
into a report, which shall be provided to the Legislature. The report
shall include conclusions describing the actual cost of projects
procured pursuant to this section, whether the project schedule was
met or altered, and whether projects needed or used project change
orders.
(q) Except as provided in this section, this act shall not be
construed to affect the application of any other law.
(r) This section shall remain in effect only until July 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before July 1, 2016, deletes or extends that date.
SEC. 79. Section 20175.2 of the Public
Contract Code is amended to read:
20175.2. (a) (1) A city, with approval of the appropriate city
council, may utilize an alternative procedure for bidding on building
construction projects in the city in excess of one million dollars
($1,000,000), except as provided in subdivision (p).
(2) Cities may award the project using either the lowest
responsible bidder or by best value.
(b) (1) It is the intent of the Legislature to enable cities to
utilize cost-effective options for building and modernizing public
facilities. The Legislature also recognizes the national trend,
including authorization in California, to allow public entities to
utilize design-build contracts as a project delivery method. It is
not the intent of the Legislature to authorize this procedure for
transportation facilities, including, but not limited to, roads and
bridges.
(2) The Legislature also finds and declares that utilizing a
design-build contract requires a clear understanding of the roles and
responsibilities of each participant in the design-build process.
The Legislature also finds that the cost-effective benefits to cities
are achieved by shifting the liability and risk for cost containment
and project completion to the design-build entity.
(3) It is the intent of the Legislature to provide an alternative
and optional procedure for bidding and building construction projects
for cities.
(4) The design-build approach may be used, but is not limited to
use, when it is anticipated that it will: reduce project cost,
expedite project completion, or provide design features not
achievable through the design-bid-build method.
(5) (A) For contracts for public works projects awarded prior to
the effective date of the regulations adopted by the
Department of Industrial Relations pursuant to subdivision (g) of
Section 1771.5 of the Labor Code, January 1, 2012,
if a city council elects to proceed under this section, the
city council shall establish and enforce a labor compliance program
containing the requirements outlined in Section 1771.5 of the Labor
Code, or it shall contract with a third party to operate a labor
compliance program containing the requirements outlined in Section
1771.5 of the Labor Code. This requirement shall not apply to any
project where the city or the design-build entity has entered into a
collective bargaining agreement or agreements that bind all of the
contractors performing work on the projects.
(B) For contracts for public works projects awarded on or after
the effective date of the regulations adopted by the
Department of Industrial Relations pursuant to subdivision (g) of
Section 1771.5 of the Labor Code, the city council shall reimburse
the department for its reasonable and directly related costs of
performing prevailing wage monitoring and enforcement on public works
projects pursuant to rates established by the department as set
forth in subdivision (h) of Section 1771.5 of the Labor Code. All
moneys collected pursuant to this paragraph shall be deposited in the
State Public Works Enforcement Fund created by Section 1771.3 of the
Labor Code, and shall be used only for enforcement of prevailing
wage requirements on those projects. January 1, 2012,
the project shall be subject to the requirements of Section 1771.4 of
the Labor Code.
(C) In lieu of reimbursing the Department of Industrial Relations
for its reasonable and directly related costs of performing
monitoring and enforcement on public works projects, the city council
may elect to continue operating an existing previously approved
labor compliance program to monitor and enforce prevailing wage
requirements on the project if it has either not contracted with a
third party to conduct its labor compliance program and requests and
receives approval from the department to continue its existing
program or it enters into a collective bargaining agreement that
binds all of the contractors performing work on the project and that
includes a mechanism for resolving disputes about the payment of
wages.
(c) As used in this section:
(1) "Best value" means a value determined by objectives relative
to price, features, functions, and life-cycle costs.
(2) "Design-build" means a procurement process in which both the
design and construction of a project are procured from a single
entity.
(3) "Design-build entity" means a partnership, corporation, or
other legal entity that is able to provide appropriately licensed
contracting, architectural, and engineering services, as needed,
pursuant to a design-build contract.
(4) "Project" means the construction of a building and
improvements directly related to the construction of a building, but
does not include streets and highways, public rail transit, or water
resource facilities and infrastructure.
(d) Design-build projects shall progress in a four-step process,
as follows:
(1) (A) The city shall prepare a set of documents setting forth
the scope of the project. The documents may include, but are not
limited to, the size, type, and desired design character of the
buildings and site, performance specifications covering the quality
of materials, equipment, and workmanship, preliminary plans or
building layouts, or any other information deemed necessary to
describe adequately the city's needs. The performance specifications
and any plans shall be prepared by a design professional who is duly
licensed and registered in California.
(B) Any architect or engineer retained by the city to assist in
the development of the project-specific documents shall not be
eligible to participate in the preparation of a bid with any
design-build entity for that project.
(2) (A) Based on the documents prepared in paragraph (1), the city
shall prepare a request for proposals that invites interested
parties to submit competitive sealed proposals in the manner
prescribed by the city. The request for proposals shall include, but
is not limited to, the following elements:
(i) Identification of the basic scope and needs of the project or
contract, the expected cost range, and other information deemed
necessary by the city to inform interested parties of the contracting
opportunity, to include the methodology that will be used by the
city to evaluate proposals, and specifically if the contract will be
awarded to the lowest responsible bidder.
(ii) Significant objective factors which the city reasonably
expects to consider in evaluating proposals, including cost or price
and all nonprice related factors.
(iii) The relative importance or weight assigned to each of the
factors identified in the request for proposals.
(B) With respect to clause (iii) of subparagraph (A), if a
nonweighted system is used, the agency shall specifically disclose
whether all evaluation factors, other than cost or price, when
combined are:
(i) Significantly more important than cost or price.
(ii) Approximately equal in importance to cost or price.
(iii) Significantly less important than cost or price.
(C) If the city chooses to reserve the right to hold discussions
or negotiations with responsive bidders, it shall so specify in the
request for proposal and shall publish separately, or incorporate
into the request for proposal, applicable rules and procedures to be
observed by the city to ensure that any discussions or negotiations
are conducted in good faith.
(3) (A) The city shall establish a procedure to prequalify
design-build entities using a standard questionnaire developed by the
city. In preparing the questionnaire, the city shall consult with
the construction industry, including representatives of the building
trades and surety industry. This questionnaire shall require
information including, but not limited to, all of the following:
(i) If the design-build entity is a partnership, limited
partnership, or other association, a listing of all of the partners,
general partners, or association members known at the time of bid
submission who will participate in the design-build contract,
including, but not limited to, mechanical subcontractors.
(ii) Evidence that the members of the design-build entity have
completed, or demonstrated the experience, competency, capability,
and capacity to complete projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the design
and construction of the project, as well as a financial statement
that assures the city that the design-build entity has the capacity
to complete the project.
(iii) The licenses, registration, and credentials required to
design and construct the project, including information on the
revocation or suspension of any license, credential, or registration.
(iv) Evidence that establishes that the design-build entity has
the capacity to obtain all required payment and performance bonding,
liability insurance, and errors and omissions insurance.
(v) Any prior serious or willful violation of the California
Occupational Safety and Health Act of 1973, contained in Part 1
(commencing with Section 6300) of Division 5 of the Labor Code or the
federal Occupational Safety and Health Act of 1970 (Public Law
91-596) settled against any member of the design-build entity, and
information concerning workers' compensation experience history and
worker safety program.
(vi) Information concerning any debarment, disqualification, or
removal from a federal, state, or local government public works
project. Any instance where an entity, its owners, officers, or
managing employees submitted a bid on a public works project and were
found to be nonresponsive, or were found by an awarding body not to
be a responsible bidder.
(vii) Any instance where the entity, its owners, officers, or
managing employees defaulted on a construction contract.
(viii) Any violations of the Contractors State License Law
(Chapter 9 (commencing with Section 7000) of Division 3 of the
Business and Professions Code), excluding alleged violations of
federal or state law including the payment of wages, benefits,
apprenticeship requirements, or personal income tax withholding, or
of Federal Insurance Contribution Act (FICA)
(FICA; 26 U.S.C. Sec. 3101 et seq.) withholding requirements
settled against any member of the design-build entity.
(ix) Information concerning the bankruptcy or receivership of any
member of the design-build entity, including information concerning
any work completed by a surety.
(x) Information concerning all settled adverse claims, disputes,
or lawsuits between the owner of a public works project and any
member of the design-build entity during the five years preceding
submission of a bid pursuant to this section, in which the claim,
settlement, or judgment exceeds fifty thousand dollars ($50,000).
Information shall also be provided concerning any work completed by a
surety during this period.
(xi) In the case of a partnership or an association that is not a
legal entity, a copy of the agreement creating the partnership or
association and specifying that all partners or association members
agree to be fully liable for the performance under the design-build
contract.
(xii) (I) Any instance in which the entity, or any of its members,
owners, officers, or managing employees was, during the five years
preceding submission of a bid pursuant to this section, determined by
a court of competent jurisdiction to have submitted, or legally
admitted for purposes of a criminal plea to have submitted either of
the following:
(ia) Any claim to any public agency or official in violation of
the federal False Claims Act (31 U.S.C. Sec. 3729 et seq.).
(ib) Any claim to any public official in violation of the
California False Claims Act (Article 9 (commencing with Section
12650) of Chapter 6 of Part 2 of Division 3 of Title 2 of
the Government Code).
(II) Information provided pursuant to this subdivision shall
include the name and number of any case filed, the court in which it
was filed, and the date on which it was filed. The entity may also
provide further information regarding any such instance, including
any mitigating or extenuating circumstances that the entity wishes
the city to consider.
(B) The information required pursuant to this subdivision shall be
verified under oath by the entity and its members in the manner in
which civil pleadings in
civil actions are verified. Information that is not a public record
pursuant to the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code) shall not be open to public inspection.
(4) The city shall establish a procedure for final selection of
the design-build entity. Selection shall be based on either of the
following criteria:
(A) A competitive bidding process resulting in lump-sum bids by
the prequalified design-build entities. Awards shall be made to the
lowest responsible bidder.
(B) The city may use a design-build competition based upon best
value and other criteria set forth in paragraph (2) of subdivision
(d). The design-build competition shall include the following
elements:
(i) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposal. However, the following minimum factors shall
each represent at least 10 percent of the total weight of
consideration given to all criteria factors: price, technical design
and construction expertise, life-cycle costs over 15 years or more,
skilled labor force availability, and acceptable safety record.
(ii) Once the evaluation is complete, the top three responsive
bidders shall be ranked sequentially from the most advantageous to
the least.
(iii) The award of the contract shall be made to the responsible
bidder whose proposal is determined, in writing, to be the most
advantageous.
(iv) Notwithstanding any provision of this code, upon issuance of
a contract award, the city shall publicly announce its award,
identifying the contractor to whom the award is made, along with a
written decision supporting its contract award and stating the basis
of the award. The notice of award shall also include the city's
second and third ranked design-build entities.
(v) For purposes of this paragraph, "skilled labor force
availability" shall be determined by the existence of an agreement
with a registered apprenticeship program, approved by the California
Apprenticeship Council, which has graduated apprentices in each of
the preceding five years. This graduation requirement shall not apply
to programs providing apprenticeship training for any craft that has
been deemed by the Department of Labor and the Department of
Industrial Relations to be an apprenticeable craft in the five years
prior to enactment of this act.
(vi) For purposes of this paragraph, a bidder's "safety record"
shall be deemed "acceptable" if its experience modification rate for
the most recent three-year period is an average of 1.00 or less, and
its average total recordable injury/illness rate and average lost
work rate for the most recent three-year period does not exceed the
applicable statistical standards for its business category, or if the
bidder is a party to an alternative dispute resolution system, as
provided for in Section 3201.5 of the Labor Code.
(e) (1) Any design-build entity that is selected to design and
build a project pursuant to this section shall possess or obtain
sufficient bonding to cover the contract amount for nondesign
services and errors and omissions insurance coverage sufficient to
cover all design and architectural services provided in the contract.
This section does not prohibit a general or engineering contractor
from being designated the lead entity on a design-build entity for
the purposes of purchasing necessary bonding to cover the activities
of the design-build entity.
(2) Any payment or performance bond written for the purposes of
this section shall be written using a bond form developed by the
city.
(f) All subcontractors that were not listed by the design-build
entity in accordance with clause (i) of subparagraph (A) of paragraph
(3) of subdivision (d) shall be awarded by the design-build entity
in accordance with the design-build process set forth by the city in
the design-build package. All subcontractors bidding on contracts
pursuant to this section shall be afforded the protections contained
in Chapter 4 (commencing with Section 4100) of Part 1. The
design-build entity shall do both of the following:
(1) Provide public notice of the availability of work to be
subcontracted in accordance with the publication requirements
applicable to the competitive bidding process of the city.
(2) Provide a fixed date and time on which the subcontracted work
will be awarded in accordance with the procedure established pursuant
to this section.
(g) Lists of subcontractors, bidders, and bid awards relating to
the project shall be submitted by the design-build entity to the
awarding body within 14 days of the award. These documents are deemed
to be public records and shall be available for public inspection
pursuant to this chapter and Article 1 (commencing with Section 6250)
of Chapter 3.5 of Division 7 of Title 1 of the Government
Code.
(h) The minimum performance criteria and design standards
established pursuant to paragraph (1) of subdivision (d) shall be
adhered to by the design-build entity. Any deviations from those
standards may only be allowed by written consent of the city.
(i) The city may retain the services of a design professional or
construction project manager, or both, throughout the course of the
project in order to ensure compliance with this section.
(j) Contracts awarded pursuant to this section shall be valid
until the project is completed.
(k) Nothing in this section is intended to affect, expand, alter,
or limit any rights or remedies otherwise available at law.
(l) (1) If the city elects to award a project pursuant to this
section, retention proceeds withheld by the city from the
design-build entity shall not exceed 5 percent if a performance and
payment bond, issued by an admitted surety insurer, is required in
the solicitation of bids.
(2) In a contract between the design-build entity and the
subcontractor, and in a contract between a subcontractor and any
subcontractor thereunder, the percentage of the retention proceeds
withheld may not exceed the percentage specified in the contract
between the city and the design-build entity. If the design-build
entity provides written notice to any subcontractor who is not a
member of the design-build entity, prior to or at the time the bid is
requested, that a bond may be required and the subcontractor
subsequently is unable or refuses to furnish a bond to the
design-build entity, then the design-build entity may withhold
retention proceeds in excess of the percentage specified in the
contract between the city and the design-build entity from any
payment made by the design-build entity to the subcontractor.
(m) Each city that elects to proceed under this section and uses
the design-build method on a public works project shall submit to the
Legislative Analyst's Office before December 1, 2014, a report
containing a description of each public works project procured
through the design-build process that is completed after January 1,
2011, and before November 1, 2014. The report shall include, but
shall not be limited to, all of the following information:
(1) The type of project.
(2) The gross square footage of the project.
(3) The design-build entity that was awarded the project.
(4) The estimated and actual project costs.
(5) The estimated and actual length of time to complete the
project.
(6) A description of any written protests concerning any aspect of
the solicitation, bid, proposal, or award of the design-build
project, including the resolution of the protests.
(7) An assessment of the prequalification process and criteria.
(8) An assessment of the effect of retaining 5 percent retention
on the project.
(9) A description of the Labor Force Compliance Program and an
assessment of the project impact, where required.
(10) A description of the method used to award the contract. If
the best value method was used, the report shall describe the factors
used to evaluate the bid, including the weighting of each factor and
an assessment of the effectiveness of the methodology.
(11) An assessment of the project impact of "skilled labor force
availability."
(12) An assessment of the most appropriate uses for the
design-build approach.
(n) Any city that elects not to use the authority granted by this
section may submit a report to the Legislative Analyst's Office
explaining why the city elected not to use the design-build method.
(o) On or before January 1, 2015, the Legislative Analyst's Office
shall report to the Legislature on the use of the design-build
method by cities pursuant to this section, including the information
listed in subdivision (m). The report may include recommendations for
modifying or extending this section.
(p) Except as provided in this section, nothing in this act shall
be construed to affect the application of any other law.
(q) Before January 1, 2011, the project limitation of one million
dollars ($1,000,000), as set forth in subdivision (a), shall not
apply to any city in the Counties of Solano and Yolo, or to the
Cities of Stanton and Victorville.
(r) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
SEC. 80. Section 20193 of the Public
Contract Code is amended to read:
20193. (a) (1) Notwithstanding any other law and subject to the
limitations of this article, a qualified entity, with approval of its
governing body, may utilize an alternative procedure on bidding on
projects in excess of two million five hundred thousand dollars
($2,500,000).
(2) Only 20 design-build projects shall be authorized under this
article.
(3) A qualified entity may award a project using either the lowest
responsible bidder or by best value.
(4) For purposes of this article, "qualified entity" means an
entity that meets both of the following:
(A) The entity is any of the following:
(i) A city.
(ii) A county.
(iii) A city and county.
(iv) A special district.
(B) The entity operates wastewater facilities, solid waste
management facilities, or water recycling facilities.
(b) (1) For contracts for public works projects awarded prior to
the effective date of the regulations adopted by the
Department of Industrial Relations pursuant to subdivision (g) of
Section 1771.5 of the Labor Code, January 1, 2012,
if a qualified entity elects to proceed under this section, the
qualified entity shall establish and enforce a labor compliance
program containing the requirements outlined in Section 1771.5 of the
Labor Code, or it shall contract with a third party to operate a
labor compliance program containing the requirements outlined in
Section 1771.5 of the Labor Code. This requirement shall not apply to
projects where the qualified entity or the design-build entity has
entered into a collective bargaining agreement or agreements that
bind all of the contractors performing work on the projects.
(2) For contracts for public works projects awarded on or after
the effective date of the regulations adopted by the
Department of Industrial Relations pursuant to subdivision (g) of
Section 1771.5 of the Labor Code, the qualified entity shall
reimburse the department for its reasonable and directly related
costs of performing prevailing wage monitoring and enforcement on
public works projects pursuant to rates established by the department
as set forth in subdivision (h) of Section 1771.5 of the Labor Code.
All moneys collected pursuant to this subdivision shall be deposited
in the State Public Works Enforcement Fund created by Section 1771.3
of the Labor Code, and shall be used only for enforcement of
prevailing wage requirements on those projects.
January 1, 2012, the project shall be subject to the requirements of
Section 1771.4 of the Labor Code.
(3) In lieu of reimbursing the Department of Industrial Relations
for its reasonable and directly related costs of performing
monitoring and enforcement on public works projects, the qualified
entity may elect to continue operating an existing previously
approved labor compliance program to monitor and enforce prevailing
wage requirements on the project if it has either not contracted with
a third party to conduct its labor compliance program and requests
and receives approval from the department to continue its existing
program or it enters into a collective bargaining agreement that
binds all of the contractors performing work on the project and that
includes a mechanism for resolving disputes about the payment of
wages.
(c) As used in this section:
(1) "Best value" means a value determined by objective criteria
related to price, features, functions, small business contracting
plans, past performance, and life-cycle costs.
(2) "Design-build" means a procurement process in which both the
design and construction of a project are procured from a single
entity.
(3) "Design-build entity" means a partnership, corporation, or
other legal entity that is able to provide appropriately licensed
contracting, architectural, and engineering services as needed
pursuant to a design-build contract.
(4) "Project" means the construction of regional and local
wastewater treatment facilities, regional and local solid waste
facilities, or regional and local water recycling facilities.
(d) Design-build projects shall progress in a four-step process,
as follows:
(1) (A) The qualified entity shall prepare a set of documents
setting forth the scope of the project. The documents may include,
but are not limited to, the size, type, and desired design character
of the project and site, performance specifications covering the
quality of materials, equipment, and workmanship, preliminary plans
or project layouts, or any other information deemed necessary to
describe adequately the qualified entity's needs. The performance
specifications and any plans shall be prepared by a design
professional who is duly licensed and registered in California.
(B) Any architect or engineer retained by the qualified entity to
assist in the development of the project specific documents shall not
be eligible to participate in the preparation of a bid with any
design-build entity for that project.
(2) (A) Based on the documents prepared in paragraph (1), the
qualified entity shall prepare a request for proposals that invites
interested parties to submit competitive sealed proposals in the
manner prescribed by the qualified entity. The request for proposals
shall include, but is not limited to, the following elements:
(i) Identification of the basic scope and needs of the project or
contract, the expected cost range, and other information deemed
necessary by the qualified entity to inform interested parties of the
contracting opportunity, to include the methodology that will be
used by the qualified entity to evaluate proposals and specifically
if the contract will be awarded to the lowest responsible bidder.
(ii) Significant factors that the qualified entity reasonably
expects to consider in evaluating proposals, including cost or price
and all nonprice related factors.
(iii) The relative importance of weight assigned to each of the
factors identified in the request for proposals.
(B) With respect to clause (iii) of subparagraph (A), if a
nonweighted system is used, the qualified entity shall specifically
disclose whether all evaluation factors other than cost or price when
combined are:
(i) Significantly more important than cost or price.
(ii) Approximately equal in importance to cost or price.
(iii) Significantly less important than cost or price.
(C) If the qualified entity chooses to reserve the right to hold
discussions or negotiations with responsive bidders, it shall so
specify in the request for proposal and shall publish separately or
incorporate into the request for proposal applicable rules and
procedures to be observed by the qualified entity to ensure that any
discussions or negotiations are conducted in good faith.
(3) (A) The qualified entity shall establish a procedure to
prequalify design-build entities using a standard questionnaire
developed by the qualified entity. In preparing the questionnaire,
the qualified entity shall consult with the construction industry,
including representatives of the building trades and surety industry.
This questionnaire shall require information including, but not
limited to, all of the following:
(i) If the design-build entity is a partnership, limited
partnership, or other association, a listing of all of the partners,
general partners, or association members known at the time of bid
submission who will participate in the design-build contract,
including, but not limited to, mechanical subcontractors.
(ii) Evidence that the members of the design-build entity have
completed, or demonstrated the experience, competency, capability,
and capacity to complete projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the design
and construction of the project, as well as a financial statement
that assures the special district that the design-build entity has
the capacity to complete the project.
(iii) The licenses, registration, and credentials required to
design and construct the project, including information on the
revocation or suspension of any license, credential, or registration.
(iv) Evidence that establishes that the design-build entity has
the capacity to obtain all required payment and performance bonding,
liability insurance, and errors and omissions insurance.
(v) Any prior serious or willful violation of the California
Occupational Safety and Health Act of 1973, contained in Part 1
(commencing with Section 6300) of Division 5 of the Labor Code or the
federal Occupational Safety and Health Act of 1970 (Public Law
91-596), settled against any member of the design-build entity, and
information concerning workers' compensation experience history and
worker safety program.
(vi) Information concerning any debarment, disqualification, or
removal from a federal, state, or local government public works
project. Any instance where an entity, its owners, officers, or
managing employees submitted a bid on a public works project and were
found to be nonresponsive, or were found by an awarding body not to
be a responsible bidder.
(vii) Any instance where the entity, its owner, officers, or
managing employees defaulted on a construction contract.
(viii) Any violations of the Contractors' State License Law
(Chapter 9 (commencing with Section 7000) of Division 3 of the
Business and Professions Code), excluding alleged violations of
federal or state law including the payment of wages, benefits,
apprenticeship requirements, or personal income tax withholding, or
of Federal Insurance Contribution Act (FICA ; 26 U.S.C. Sec.
3101 et seq. ) withholding requirements settled against any
member of the design-build entity.
(ix) Information concerning the bankruptcy or receivership of any
member of the design-build entity, including information concerning
any work completed by a surety.
(x) Information concerning all settled adverse claims, disputes,
or lawsuits between the owner of a public works project and any
member of the design-build entity during the five years preceding
submission of a bid pursuant to this section, in which the claim,
settlement, or judgment exceeds fifty thousand dollars ($50,000).
Information shall also be provided concerning any work completed by a
surety during this period.
(xi) In the case of a partnership or other association, that is
not a legal entity, a copy of the agreement creating the partnership
or association and specifying that all partners or association
members agree to be fully liable for the performance under the
design-build contract.
(B) The information required pursuant to this subdivision shall be
verified under oath by the entity and its members in the manner in
which civil pleadings in civil actions are verified. Information that
is not a public record pursuant to the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code) shall not be open to public inspection.
(4) The qualified entity shall establish a procedure for final
selection of the design-build entity. Selection shall be based on
either of the following criteria:
(A) A competitive bidding process resulting in lump-sum bids by
the prequalified design-build entities. Awards shall be made to the
lowest responsible bidder.
(B) A qualified entity may use a design-build competition based
upon best value and other criteria set forth in paragraph (2) of
subdivision (d). The design-build competition shall include the
following elements:
(i) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposal. However, the following minimum factors shall
each represent at least 10 percent of the total weight of
consideration given to all criteria factors; price, technical design
and construction expertise, life-cycle costs over 15 years or more,
skilled labor force availability, and acceptable safety record.
(ii) Once the evaluation is complete, the top three responsive
bidders shall be ranked sequentially from the most advantageous to
the least.
(iii) The award of the contract shall be made to the responsible
bidder whose proposal is determined, in writing, to be the most
advantageous.
(iv) Notwithstanding any provision of this code, upon issuance of
a contract award, the qualified entity shall publicly announce its
award, identifying the contractor to which the award is made, along
with a written decision supporting its contract award and stating the
basis of the award. The notice of award shall also include the
qualified entity's second and third ranked design-build entities.
(v) For purposes of this paragraph, "skilled labor force
availability" shall be determined by the existence of an agreement
with a registered apprenticeship program, approved by the California
Apprenticeship Council, which has graduated apprentices in each of
the preceding five years. This graduation requirement shall not apply
to programs providing apprenticeship training for any craft that has
been deemed by the Department of Labor and the Department of
Industrial Relations to be an apprenticeable craft in the five years
prior to enactment of this act.
(vi) For purposes of this paragraph, a bidder's "safety record"
shall be deemed "acceptable" if their experience modification rate
for the most recent three-year period is an average of 1.00 or less,
and their average total recordable injury/illness rate and average
lost work rate for the most recent three-year period does not exceed
the applicable statistical standards for its business category, or if
the bidder is a party to an alternative dispute resolution system as
provided for in Section 3201.5 of the Labor Code.
(e) (1) Any design-build entity that is selected to design and
build a project pursuant to this section shall possess or obtain
sufficient bonding to cover the contract amount for nondesign
services, and errors and omissions insurance coverage sufficient to
cover all design and architectural services provided in the contract.
This section does not prohibit a general or engineering contractor
from being designated the lead entity on a design-build entity for
the purposes of purchasing necessary bonding to cover the activities
of the design-build entity.
(2) Any payment or performance bond written for the purposes of
this section shall be written using a bond form developed by the
qualified entity.
(f) All subcontractors that were not listed by the design-build
entity in accordance with clause (i) of subparagraph (A) of paragraph
(3) of subdivision (d) shall be awarded by the design-build entity
in accordance with the design-build process set forth by the
qualified entity in the design-build package. All subcontractors
bidding on contracts pursuant to this section shall be afforded the
protections contained in Chapter 4 (commencing with Section 4100) of
Part 1. The design-build entity shall do both of the following:
(1) Provide public notice of the availability of work to be
subcontracted in accordance with the publication requirements
applicable to the competitive bidding process of the qualified
entity.
(2) Provide a fixed date and time on which the subcontracted work
will be awarded in accordance with the procedure established pursuant
to this section.
(g) The minimum performance criteria and design standards
established pursuant to paragraph (1) of subdivision (d) shall be
adhered to by the design-build entity. Any deviations from those
standards may only be allowed by written consent of the qualified
entity.
(h) The qualified entity may retain the services of a design
professional or construction project manager, or both, throughout the
course of the project in order to ensure compliance with this
section.
(i) Contracts awarded pursuant to this section shall be valid
until the project is completed.
(j) Nothing in this section is intended to affect, expand, alter,
or limit any rights or remedies otherwise available at law.
(k) (1) If the qualified entity elects to award a project pursuant
to this section, retention proceeds withheld by the qualified entity
from the design-build entity shall not exceed 5 percent if a
performance and payment bond, issued by an admitted surety insurer,
is required in the solicitation of bids.
(2) In a contract between the design-build entity and the
subcontractor, and in a contract between a subcontractor and any
subcontractor thereunder, the percentage of the retention proceeds
withheld may not exceed the percentage specified in the contract
between the qualified entity and the design-build entity. If the
design-build entity provides written notice to any subcontractor who
is not a member of the design-build entity, prior to or at the time
the bid is requested, that a bond may be required and the
subcontractor subsequently is unable or refuses to furnish a bond to
the design-build entity, then the design-build entity may withhold
retention proceeds in excess of the
percentage specified in the contract between the
qualified entity and the design-build entity from any payment made by
the design-build entity to the subcontractor.
(l) Each qualified entity that elects to proceed under this
section and uses the design-build method on a public works project
shall do both of the following:
(1) Notify the Legislative Analyst's Office upon initiation of the
project and upon completion of the project.
(2) Submit to the Legislative Analyst's Office, upon completion of
the project, a report containing a description of the public works
project procured through the design-build process pursuant to this
section and completed after January 1, 2009. The report shall
include, but shall not be limited to, all of the following
information:
(A) The type of project.
(B) The gross square footage of the project.
(C) The design-build entity that was awarded the project.
(D) The estimated and actual project costs.
(E) A description of any written protests concerning any aspect of
the solicitation, bid, proposal, or award of the design-build
project, including the resolution of the protests.
(F) An assessment of the prequalification process and criteria.
(G) An assessment of the effect of retaining 5-percent retention
on the project.
(H) A description of the Labor Force Compliance Program and an
assessment of the project impact, where required.
(I) A description of the method used to award the contract. If
best value was the method, the report shall describe the factors used
to evaluate the bid, including the weighting of each factor and an
assessment of the effectiveness of the methodology.
(J) An assessment of the project impact of "skilled labor force
availability."
(K) An assessment of the most appropriate uses for the
design-build approach.
(m) Any qualified entity that elects not to use the authority
granted by this section may submit a report to the Legislative
Analyst's Office explaining why the qualified entity elected to not
use the design-build method.
(n) (1) In order to comply with paragraph (2) of subdivision (a),
the Office of Planning and Research is required to maintain the list
of entities that have applied and are eligible to be qualified for
this authority.
(2) Each entity that is interested in proceeding under the
authority in this section must apply to the Office of Planning and
Research.
(A) The application to proceed must be in writing.
(B) An entity must have complied with the California Environmental
Quality Act review process pursuant to Division 13 (commencing with
Section 21000) of the Public Resources Code prior to its application,
and must include its approved notice of determination or notice of
completion in its application.
(3) The Office of Planning and Research must approve or deny an
application, in writing, within 30 days. The authority to deny an
application shall only be exercised if the conditions set forth in
either or both paragraph (2) of subdivision (a) and subparagraph (B)
of paragraph (2) of this subdivision have not been satisfied.
(4) An entity utilizing this section must, after it determines it
no longer is interested in using this authority, notify the Office of
Planning and Research in writing within 30 days of its
determination. Upon notification, the Office of Planning and Research
may contact any previous applicants, denied pursuant to paragraph
(2) of subdivision (a), to inform them of the availability to proceed
under this section.
(o) The Legislative Analyst shall report to the Legislature on the
use of the design-build method by qualified entities pursuant to
this section, including the information listed in subdivision (l).
The report may include recommendations for modifying or extending
this section, and shall be submitted on either of the following
dates, whichever occurs first:
(1) Within one year of the completion of the 20 projects, if the
projects are completed prior to January 1, 2019.
(2) No later than January 1, 2020.
SEC. 81. Section 20209.7 of the Public
Contract Code is amended to read:
20209.7. Design-build projects shall progress in a three-step
process, as follows:
(a) The transit operator shall prepare a set of documents setting
forth the scope of the project. The documents shall include, but are
not limited to, the size, type, and desired design character of the
buildings, transit facilities, and site, performance specifications
covering the quality of materials, equipment, and workmanship,
preliminary plans or building layouts, or any other information
deemed necessary to describe adequately the transit operator's needs.
The performance specifications and any plans shall be prepared by a
design professional duly licensed or registered in California.
(b) Any architectural or engineering firm or individual retained
by the transit operator to assist in the development criteria or
preparation of the request for proposal (RFP) is not eligible to
participate in the competition for the design-build entity.
(c) (1) For contracts for public works projects awarded prior to
the effective date of the regulations adopted by the
Department of Industrial Relations pursuant to subdivision (g) of
Section 1771.5 of the Labor Code, January 1, 2012,
the transit operator shall establish and enforce a labor
compliance program containing the requirements outlined in Section
1771.5 of the Labor Code or shall contract with a third party to
operate this labor compliance program containing the requirements
outlined in Section 1771.5 of the Labor Code. This requirement shall
not apply to projects where the transit operator or the design-build
entity has entered into a collective bargaining agreement that binds
all of the contractors performing work on the project, or to any
other project of the transit operator that is not design-build.
(2) For contracts for public works projects awarded on or after
the effective date of the regulations adopted by the
Department of Industrial Relations pursuant to subdivision (g) of
Section 1771.5 of the Labor Code, the transit operator shall
reimburse the department for its reasonable and directly related
costs of performing prevailing wage monitoring and enforcement on
public works projects pursuant to rates established by the department
as set forth in subdivision (h) of Section 1771.5 of the Labor Code.
All moneys collected pursuant to this subdivision shall be deposited
in the State Public Works Enforcement Fund created by Section 1771.3
of the Labor Code, and shall be used only for enforcement of
prevailing wage requirements on those projects.
January 1, 2012, the project shall be subject to the requirements of
Section 1771.4 of the Labor Code.
(3) In lieu of reimbursing the Department of Industrial Relations
for its reasonable and directly related costs of performing
monitoring and enforcement on public works projects, the transit
operator may elect to continue operating an existing previously
approved labor compliance program to monitor and enforce prevailing
wage requirements on the project if it has either not contracted with
a third party to conduct its labor compliance program and requests
and receives approval from the department to continue its existing
program or it enters into a collective bargaining agreement that
binds all of the contractors performing work on the project and that
includes a mechanism for resolving disputes about the payment of
wages.
(d) (1) Each RFP shall identify the basic scope and needs of the
project or contract, the expected cost range, and other information
deemed necessary by the contracting agency to inform interested
parties of the contracting opportunity.
(2) Each RFP shall invite interested parties to submit competitive
sealed proposals in the manner prescribed by the contracting agency.
(3) Each RFP shall include a section identifying and describing:
(A) All significant factors that the agency reasonably expects to
consider in evaluating proposals, including cost or price and all
nonprice-related factors.
(B) The methodology and rating or weighting process that will be
used by the agency in evaluating competitive proposals and
specifically whether proposals will be rated according to numeric or
qualitative values.
(C) The relative importance or weight assigned to each of the
factors identified in the RFP. If a nonweighted system is used, the
agency shall specifically disclose whether all evaluation factors
other than cost or price, when combined, are any of the following:
(i) Significantly more important than cost or price.
(ii) Approximately equal in importance to cost or price.
(iii) Significantly less important than cost or price.
(D) If the contracting agency wishes to reserve the right to hold
discussions or negotiations with offerors, it shall specify the same
in the RFP and shall publish separately or incorporate into the RFP
applicable rules and procedures to be observed by the agency to
ensure that any discussions or negotiations are conducted in a fair
and impartial manner.
(e) (1) The transit operator shall establish a procedure to
prequalify design-build entities using a standard questionnaire
developed by the Director of Industrial Relations. The standardized
questionnaire shall not require prospective bidders to disclose any
violations of Chapter 1 (commencing with Section 1720) of Part 7 of
Division 2 of the Labor Code committed prior to January 1, 1998, if
the violation was based on a subcontractor's failure to comply with
these provisions and the bidder had no knowledge of the subcontractor'
s violations and the bidder complied with the conditions set forth in
subdivision (b) of Section 1775 of the Labor Code. In preparing the
questionnaire, the director shall consult with the construction
industry, building trades, transit operators, and other affected
parties. This questionnaire shall require information relevant to the
architecture or engineering firm that will be the lead on the
design-build project. The questionnaire shall include, but is not
limited to, all of the following:
(A) A listing of all the contractors that are part of the
design-build entity.
(B) Evidence that the members of the design-build entity have
completed, or demonstrated the experience, competency, capability,
and capacity to complete, projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the design
and construction of the project.
(C) The licenses, registrations, and credentials required to
design and construct the project, including information on the
revocation or suspension of any license, credential, or registration.
(D) Evidence that establishes that the design-build entity has the
capacity to obtain all required payment and performance bonding,
liability insurance, and errors and omissions insurance, as well as a
financial statement that assures the transit operator that the
design-build entity has the capacity to complete the project.
(E) Any prior serious or willful violation of the California
Occupational Safety and Health Act of 1973, contained in Part 1
(commencing with Section 6300) of Division 5 of the Labor Code or the
federal Occupational Safety and Health Act of 1970 (Public Law
91-596), settled against any member of the design-build entity, and
information concerning a contractor member's workers' compensation
experience history and worker safety program.
(F) Information concerning any debarment, disqualification, or
removal from a federal, state, or local government public works
project. Any instance where an entity, its owners, officers, or
managing employees submitted a bid on a public works project and were
found by an awarding body not to be a responsible bidder.
(G) Any instance where the entity, its owner, officers, or
managing employees defaulted on a construction contract.
(H) Any violations of the Contractors' State License Law (Chapter
9 (commencing with Section 7000) of Division 3 of the Business and
Professions Code), excluding alleged violations of federal or state
law, including the payment of wages, benefits, apprenticeship
requirements, or personal income tax withholding, or of Federal
Insurance Contribution Act (FICA ; 26 U.S.C. Sec. 3101 et seq.
) withholding requirements settled against any member of the
design-build entity.
(I) Information concerning the bankruptcy or receivership of any
member of the entity, and information concerning all legal claims,
disputes, or lawsuits arising from any construction project of any
member of the entity during the past three years, including
information concerning any work completed by a surety.
(J) If the design-build entity is a partnership, limited
partnership, or other association, a listing of all of the partners,
general partners, or association members who will participate as
subcontractors in the design-build contract.
(K) Information concerning all settled adverse claims, disputes,
or lawsuits between the owner of a public works project and any
member of the design-build entity during the five-year period
immediately preceding submission of a bid pursuant to this section,
in which the claim, settlement, or judgment exceeds fifty thousand
dollars ($50,000). Information shall also be provided concerning any
work completed by a surety during this period.
(L) In the case of a partnership or other association that is not
a legal entity, a copy of the agreement creating the partnership or
association and specifying that all partners or association members
agree to be liable for full performance under the design-build
contract.
(2) The information required pursuant to this subdivision shall be
verified under oath by the entity and its members in the manner in
which civil pleadings in civil actions are verified. Information that
is not a public record pursuant to the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code) shall not be open to public inspection.
(f) The transit operator shall establish a procedure for final
selection of the design-build entity. Selection shall be subject to
the following conditions:
(1) In no case shall the transit operator award a contract to a
design-build entity pursuant to this article for a capital
maintenance or capacity-enhancing rail project unless that project
exceeds twenty-five million dollars ($25,000,000) in cost.
(2) For nonrail transit projects that exceed two million five
hundred thousand dollars ($2,500,000), the transit operator may award
the project to the lowest responsible bidder or by using the best
value method.
(3) For the acquisition and installation of technology
applications or surveillance equipment designed to enhance safety,
disaster preparedness, and homeland security efforts, there shall be
no cost threshold and the transit operator may award the contract to
the lowest responsible bidder or by using the best value method.
(g) Except as provided in this section, nothing in this act shall
be construed to affect the application of any other law.
SEC. 82. Section 20688.6 of the Public
Contract Code is amended to read:
20688.6. (a) (1) Notwithstanding any other law, an agency, with
approval of its duly constituted board in a public hearing, may
utilize an alternative procedure for bidding on projects in the
community in excess of one million dollars ($1,000,000) and may award
the project using either the lowest responsible bidder or by best
value.
(2) Only 10 design-build projects shall be authorized under this
section.
(b) (1) It is the intent of the Legislature to enable entities as
provided in Part 1 (commencing with Section 33000) of Division 24 of
the Health and Safety Code to utilize design-build for those
infrastructure improvements authorized in Sections 33421, 33445, and
33445.1 of the Health and Safety Code and subject to the limitations
on that authority described in Section 33421.1 of the Health and
Safety Code.
(2) The Legislature also finds and declares that utilizing a
design-build contract requires a clear understanding of the roles and
responsibilities of each participant in the design-build process.
(3) (A) For contracts for public works projects awarded prior to
the effective date of the regulations adopted by the
Department of Industrial Relations pursuant to subdivision (g) of
Section 1771.5 of the Labor Code, January 1, 2012,
if the board elects to proceed under this section, the board
shall establish and enforce a labor compliance program containing the
requirements outlined in Section 1771.5 of the Labor Code, or it
shall contract with a third party to operate a labor compliance
program containing the requirements outlined in Section 1771.5 of the
Labor Code. This requirement shall not apply to projects where the
agency or the design-build entity has entered into a collective
bargaining agreement or agreements that bind all of the contractors
performing work on the projects.
(B) For contracts for public works projects awarded on or after
the effective date of the regulations adopted by the
Department of Industrial Relations pursuant to subdivision (g) of
Section 1771.5 of the Labor Code, the board shall reimburse the
department for its reasonable and directly related costs of
performing prevailing wage monitoring and enforcement on public works
projects pursuant to rates established by the department as set
forth in subdivision (h) of Section 1771.5 of the Labor Code. All
moneys collected pursuant to this subdivision shall be deposited in
the State Public Works Enforcement Fund, created by Section 1771.3 of
the Labor Code, and shall be used only for enforcement of prevailing
wage requirements on those projects. January 1, 2012,
the project shall be subject to the requirements of Section 1771.4
of the Labor Code.
(C) In lieu of reimbursing the Department of Industrial Relations
for its reasonable and directly related costs of performing
monitoring and enforcement on public works projects, the board may
elect to continue operating an existing previously approved labor
compliance program to monitor and enforce prevailing wage
requirements on the project if it has either not contracted with a
third party to conduct its labor compliance program and requests and
receives approval from the department to continue its existing
program or it enters into a collective bargaining agreement that
binds all of the contractors performing work on the project and that
includes a mechanism for resolving disputes about the payment of
wages.
(c) As used in this section:
(1) "Best value" means a value determined by objective criteria
related to price, features, functions, and life-cycle costs.
(2) "Design-build" means a procurement process in which both the
design and construction of a project are procured from a single
entity.
(3) "Design-build entity" means a partnership, corporation, or
other legal entity that is able to provide appropriately licensed
contracting, architectural, and engineering services as needed
pursuant to a design-build contract.
(4) "Project" means those infrastructure improvements authorized
in Sections 33421, 33445, and 33445.1 of the Health and Safety Code
and subject to the limitations and conditions on that authority
described in Article 10 (commencing with Section 33420) and Article
11 (commencing with Section 33430) of Chapter 4 of Part 1 of Division
24 of the Health and Safety Code.
(d) Design-build projects shall progress in a four-step process,
as follows:
(1) (A) The agency shall prepare a set of documents setting forth
the scope of the project. The documents may include, but are not
limited to, the size, type, and desired design character of the
public improvement, performance specifications covering the quality
of materials, equipment, and workmanship, preliminary plans or
building layouts, or any other information deemed necessary to
describe adequately the agency's needs. The performance
specifications and any plans shall be prepared by a design
professional who is duly licensed and registered in California.
(B) Any architect or engineer retained by the agency to assist in
the development of the project specific documents shall not be
eligible to participate in the preparation of a bid with any
design-build entity for that project.
(2) (A) Based on the documents prepared as described in paragraph
(1), the agency shall prepare a request for proposals that invites
interested parties to submit competitive sealed proposals in the
manner prescribed by the agency. The request for proposals shall
include, but is not limited to, the following elements:
(i) Identification of the basic scope and needs of the project or
contract, the expected cost range, and other information deemed
necessary by the agency to inform interested parties of the
contracting opportunity, to include the methodology that will be used
by the agency to evaluate proposals and specifically if the contract
will be awarded to the lowest responsible bidder.
(ii) Significant factors that the agency reasonably expects to
consider in evaluating proposals, including cost or price and all
nonprice-related factors.
(iii) The relative importance of the weight assigned to each of
the factors identified in the request for proposals.
(B) With respect to clause (iii) of subparagraph (A), if a
nonweighted system is used, the agency shall specifically disclose
whether all evaluation factors other than cost or price when combined
are:
(i) Significantly more important than cost or price.
(ii) Approximately equal in importance to cost or price.
(iii) Significantly less important than cost or price.
(C) If the agency chooses to reserve the right to hold discussions
or negotiations with responsive bidders, it shall so specify in the
request for proposal and shall publish separately or incorporate into
the request for proposal applicable rules and procedures to be
observed by the agency to ensure that any discussions or negotiations
are conducted in good faith.
(3) (A) The agency shall establish a procedure to prequalify
design-build entities using a standard questionnaire developed by the
agency. In preparing the questionnaire, the agency shall consult
with the construction industry, including representatives of the
building trades and surety industry. This questionnaire shall require
information including, but not limited to, all of the following:
(i) If the design-build entity is a partnership, limited
partnership, or other association, a listing of all of the partners,
general partners, or association members known at the time of bid
submission who will participate in the design-build contract,
including, but not limited to, mechanical subcontractors.
(ii) Evidence that the members of the design-build entity have
completed, or demonstrated the experience, competency, capability,
and capacity to complete, projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the design
and construction of the project, as well as a financial statement
that assures the agency that the design-build entity has the capacity
to complete the project.
(iii) The licenses, registration, and credentials required to
design and construct the project, including information on the
revocation or suspension of any license, credential, or registration.
(iv) Evidence that establishes that the design-build entity has
the capacity to obtain all required payment and performance bonding,
liability insurance, and errors and omissions insurance.
(v) Any prior serious or willful violation of the California
Occupational Safety and Health Act of 1973, contained in Part 1
(commencing with Section 6300) of Division 5 of the Labor Code, or
the federal Occupational Safety and Health Act of 1970 (Public Law
91-596), settled against any member of the design-build entity, and
information concerning workers' compensation experience history and
worker safety program.
(vi) Information concerning any debarment, disqualification, or
removal from a federal, state, or local government public works
project. Any instance in which an entity, its owners, officers, or
managing employees submitted a bid on a public works project and were
found to be nonresponsive, or were found by an awarding body not to
be a responsible bidder.
(vii) Any instance in which the entity, or its owners, officers,
or managing employees, defaulted on a construction contract.
(viii) Any violations of the Contractors' State License Law
(Chapter 9 (commencing with Section 7000) of Division 3 of the
Business and Professions Code), including alleged violations of
federal or state law including the payment of wages, benefits,
apprenticeship requirements, or personal income tax withholding, or
of Federal Insurance Contributions Act (FICA ; 26 U.S.C. Sec.
3101 et seq. ) withholding requirements settled against any
member of the design-build entity.
(ix) Information concerning the bankruptcy or receivership of any
member of the design-build entity, including information concerning
any work completed by a surety.
(x) Information concerning all settled adverse claims, disputes,
or lawsuits between the owner of a public works project and any
member of the design-build entity during the five years preceding
submission of a bid pursuant to this section, in which the claim,
settlement, or judgment exceeds fifty thousand dollars ($50,000).
Information shall also be provided concerning any work completed by a
surety during this period.
(xi) In the case of a partnership, joint venture, or an
association that is not a legal entity, a copy of the agreement
creating the partnership or association and specifying that all
general partners, joint venturers, or association members agree to be
fully liable for the performance under the design-build contract.
(B) The information required pursuant to this subdivision shall be
verified under oath by the entity and its members in the manner in
which civil pleadings in
civil actions are verified. Information that is not a public record
pursuant to the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code) shall not be open to public inspection.
(4) The agency shall establish a procedure for final selection of
the design-build entity. Selection shall be based on either of the
following criteria:
(A) A competitive bidding process resulting in lump-sum bids by
the prequalified design-build entities. Awards shall be made to the
lowest responsible bidder.
(B) An agency may use a design-build competition based upon best
value and other criteria set forth in paragraph (2). The design-build
competition shall include the following elements:
(i) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposal. However, the following minimum factors shall
each represent at least 10 percent of the total weight of
consideration given to all criteria factors: price, technical design
and construction expertise, life-cycle costs over 15 years or more,
skilled labor force availability, and acceptable safety record.
(ii) Once the evaluation is complete, the top three responsive
bidders shall be ranked sequentially from the most advantageous to
the least.
(iii) The award of the contract shall be made to the responsible
bidder whose proposal is determined, in writing, to be the most
advantageous.
(iv) Notwithstanding any provision of this code, upon issuance of
a contract award, the agency shall publicly announce its award,
identifying the contractor to whom the award is made, along with a
written decision supporting its contract award and stating the basis
of the award. The notice of award shall also include the agency's
second- and third-ranked design-build entities.
(v) For purposes of this paragraph, skilled labor force
availability shall be determined by the existence of an agreement
with a registered apprenticeship program, approved by the California
Apprenticeship Council, which has graduated apprentices in each of
the preceding five years. This graduation requirement shall not apply
to programs providing apprenticeship training for any craft that has
been deemed by the Department of Labor and the Department of
Industrial Relations to be an apprenticeable craft in the five years
prior to enactment of this act.
(vi) For purposes of this paragraph, a bidder's safety record
shall be deemed acceptable if its experience modification rate for
the most recent three-year period is an average of 1.00 or less, and
its average total recordable injury/illness rate and average lost
work rate for the most recent three-year period does not exceed the
applicable statistical standards for its business category or if the
bidder is a party to an alternative dispute resolution system as
provided for in Section 3201.5 of the Labor Code.
(e) (1) Any design-build entity that is selected to design and
build a project pursuant to this section shall possess or obtain
sufficient bonding to cover the contract amount for nondesign
services, and errors and omission insurance coverage sufficient to
cover all design and architectural services provided in the contract.
This section does not prohibit a general or engineering contractor
from being designated the lead entity on a design-build entity for
the purposes of purchasing necessary bonding to cover the activities
of the design-build entity.
(2) Any payment or performance bond written for the purposes of
this section shall be written using a bond form developed by the
agency.
(f) All subcontractors that were not listed by the design-build
entity in accordance with clause (i) of subparagraph (A) of paragraph
(3) of subdivision (d) shall be awarded by the design-build entity
in accordance with the design-build process set forth by the agency
in the design-build package. All subcontractors bidding on contracts
pursuant to this section shall be afforded the protections contained
in Chapter 4 (commencing with Section 4100) of Part 1. The
design-build entity shall do both of the following:
(1) Provide public notice of the availability of work to be
subcontracted in accordance with the publication requirements
applicable to the competitive bidding process of the agency.
(2) Provide a fixed date and time on which the subcontracted work
will be awarded in accordance with the procedure established pursuant
to this section.
(g) The minimum performance criteria and design standards
established pursuant to paragraph (1) of subdivision (d) shall be
adhered to by the design-build entity. Any deviations from those
standards may only be allowed by written consent of the agency.
(h) The agency may retain the services of a design professional or
construction project manager, or both, throughout the course of the
project in order to ensure compliance with this section.
(i) Contracts awarded pursuant to this section shall be valid
until the project is completed.
(j) Nothing in this section is intended to affect, expand, alter,
or limit any rights or remedies otherwise available at law.
(k) (1) If the agency elects to award a project pursuant to this
section, retention proceeds withheld by the agency from the
design-build entity shall not exceed 5 percent if a performance and
payment bond, issued by an admitted surety insurer, is required in
the solicitation of bids.
(2) In a contract between the design-build entity and the
subcontractor, and in a contract between a subcontractor and any
subcontractor thereunder, the percentage of the retention proceeds
withheld shall not exceed the percentage specified in the contract
between the agency and the design-build entity. If the design-build
entity provides written notice to any subcontractor who is not a
member of the design-build entity, prior to or at the time the bid is
requested, that a bond may be required and the subcontractor
subsequently is unable or refuses to furnish a bond to the
design-build entity, then the design-build entity may withhold
retention proceeds in excess of the percentage specified in the
contract between the agency and the design-build entity from any
payment made by the design-build entity to the subcontractor.
(l) Each agency that elects to proceed under this section and uses
the design-build method on a public works project shall submit to
the Legislative Analyst's Office before December 1, 2014, a report
containing a description of each public works project procured
through the design-build process after January 1, 2010, and before
November 1, 2014. The report shall include, but shall not be limited
to, all of the following information:
(1) The type of project.
(2) The gross square footage of the project.
(3) The design-build entity that was awarded the project.
(4) Where appropriate, the estimated and actual length of time to
complete the project.
(5) The estimated and actual project costs.
(6) A description of any written protests concerning any aspect of
the solicitation, bid, proposal, or award of the design-build
project, including the resolution of the protests.
(7) An assessment of the prequalification process and criteria.
(8) An assessment of the effect of retaining 5-percent retention
on the project.
(9) A description of the labor force compliance program and an
assessment of the project impact, where required.
(10) A description of the method used to award the contract. If
best value was the method, the report shall describe the factors used
to evaluate the bid, including the weighting of each factor and an
assessment of the effectiveness of the methodology.
(11) An assessment of the project impact of skilled labor force
availability.
(12) An assessment of the design-build dollar limits on agency
projects. This assessment shall include projects where the agency
wanted to use design-build and was precluded by the dollar
limitation. This assessment shall also include projects where the
best value method was not used due to dollar limitations.
(13) An assessment of the most appropriate uses for the
design-build approach.
(m) (1) In order to comply with paragraph (2) of subdivision (a),
the State Public Works Board is required to maintain the list of
agencies that have applied and are eligible to be qualified for this
authority.
(2) Each agency that is interested in proceeding under the
authority in this section must apply to the State Public Works Board.
The application to proceed shall be in writing and contain such
information that the State Public Works Board may require.
(3) The State Public Works Board shall approve or deny an
application, in writing, within 90 days of the submission of a
complete application. The authority to deny an application shall only
be exercised if the condition set forth in paragraph (2) of
subdivision (a) has been satisfied.
(4) An agency that has applied for this authorization shall, after
it determines it no longer is interested in using this authority,
notify the State Public Works Board in writing within 30 days of its
determination. Upon notification, the State Public Works Board may
contact any previous applicants, denied pursuant to paragraph (2) of
subdivision (a), to inform them of the availability to proceed under
this section.
(5) The State Public Works Board may authorize no more than 10
projects. The board shall not authorize or approve more than two
projects for any one eligible redevelopment agency that submits a
completed application.
(6) The State Public Works Board shall notify the Legislative
Analyst's Office when 10 projects have been approved.
(n) On or before January 1, 2015, the Legislative Analyst shall
report to the Legislature on the use of the design-build method by
agencies pursuant to this section, including the information listed
in subdivision (l). The report may include recommendations for
modifying or extending this section.
(o) Except as provided in this section, nothing in this act shall
be construed to affect the application of any other law.
(p) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
SEC. 83. Section 20919.3 of the Public
Contract Code is amended to read:
20919.3. (a) (1) For contracts for public works projects awarded
prior to the effective date of the regulations adopted by
the Department of Industrial Relations pursuant to subdivision (g) of
Section 1771.5 of the Labor Code, January 1, 2012,
the unified school district shall establish and enforce for job
order contracts a labor compliance program containing the
requirements outlined in Section 1771.5 of the Labor Code, or it
shall contract with a third party to operate a labor compliance
program containing the requirements outlined in that provision. This
requirement does not apply to any project where the unified school
district or the job order contractor has entered into a collective
bargaining agreement or agreements that bind all of the contractors
performing work on the projects.
(2) For contracts for public works projects awarded on or after
the effective date of the regulations adopted by the
Department of Industrial Relations pursuant to subdivision (g) of
Section 1771.5 of the Labor Code, the unified school district shall
reimburse the department for its reasonable and directly related
costs of performing prevailing wage monitoring and enforcement on
public works projects pursuant to rates established by the department
as set forth in subdivision (h) of Section 1771.5 of the Labor Code.
All moneys collected pursuant to this subdivision shall be deposited
in the State Public Works Enforcement Fund created by Section 1771.3
of the Labor Code, and shall be used only for enforcement of
prevailing wage requirements on those projects.
January 1, 2012, the project shall be subject to the requirements of
Section 1771.4 of the Labor Code.
(3) In lieu of reimbursing the Department of Industrial Relations
for its reasonable and directly related costs of performing
monitoring and enforcement on public works projects, the unified
school district may elect to continue operating an existing
previously approved labor compliance program to monitor and enforce
prevailing wage requirements on the project if it has either not
contracted with a third party to conduct its labor compliance program
and requests and receives approval from the department to continue
its existing program or it enters into a collective bargaining
agreement that binds all of the contractors performing work on the
project and that includes a mechanism for resolving disputes about
the payment of wages.
(b) The unified school district shall prepare an execution plan
for all modernization projects that may be eligible for job order
contracting pursuant to this article. The unified school district
shall select from that plan a sufficient number of projects to be
initiated as job order contracts during each calendar year and shall
determine for each selected project that job order contracting will
reduce the total cost of that project. Job order contracting shall
not be used if the unified school district finds that it will
increase the total cost of the project.
(c) No later than June 30, 2017, the unified school district shall
submit an interim report on all job order contract projects
completed by December 31, 2016, to the Office of Public School
Construction in the Department of General Services and the Senate
Committee on Business, Professions and Economic Development and the
Assembly Committee on Business, Professions and Consumer Protection
and the Senate and Assembly Committees on Education. The interim
report shall be prepared by an independent third party and the
unified school district shall pay for the cost of the report. The
report shall include the information specified in subdivisions (a)
through (h) of Section 20919.12.
SEC. 84. Section 100152 of the Public
Utilities Code is repealed.
100152. (a) Except as specified in subdivision (b), the authority
shall comply with subdivision (f) of Section 1771.5 of the Labor
Code and shall reimburse the Department of Industrial Relations for
its reasonable and directly related costs of performing prevailing
wage monitoring and enforcement on public works projects pursuant to
rates established by the department as set forth in subdivision (h)
of Section 1771.5 of the Labor Code on projects using the CMGC
project delivery method under this article. All moneys collected
pursuant to this subdivision shall be deposited in the State Public
Works Enforcement Fund, created by Section 1771.3 of the Labor Code,
and shall be used only for enforcement of prevailing wage
requirements on those projects.
(b) In lieu of complying with subdivision (a), the authority may
elect to enter into a collective bargaining agreement that binds all
of the contractors performing work on the project and that includes a
mechanism for resolving disputes about the payment of wages.
SEC. 85. Section 100152 is added to the
Public Utilities Code , to read:
100152. Any public works project that is contracted for pursuant
to this article shall be subject to the requirements of Section
1771.4 of the Labor Code.
SEC. 86. Section 103396 of the Public
Utilities Code is repealed.
103396. (a) Except as specified in subdivision (b), the district
shall comply with subdivision (f) of Section 1771.5 of the Labor Code
and shall reimburse the Department of Industrial Relations for its
reasonable and directly related costs of performing prevailing wage
monitoring and enforcement on public works projects pursuant to rates
established by the department as set forth in subdivision (h) of
Section 1771.5 of the Labor Code on projects using the CMGC project
delivery method under this article. All moneys collected pursuant to
this subdivision shall be deposited in the State Public Works
Enforcement Fund, created by Section 1771.3 of the Labor Code, and
shall be used only for enforcement of prevailing wage requirements on
those projects.
(b) In lieu of complying with subdivision (a), the district may
elect to enter into a collective bargaining agreement that binds all
of the contractors performing work on the project and that includes a
mechanism for resolving disputes about the payment of wages.
SEC. 87. Section 103396 is added to the
Public Utilities Code , to read:
103396. Any public works project that is contracted for pursuant
to this article shall be subject to the requirements of Section
1771.4 of the Labor Code.
SEC. 88. Section 75.70 of the Revenue
and Taxation Code is amended to read:
75.70. (a) Notwithstanding any other law, for the 1983-84 fiscal
year, each county auditor shall allocate to all elementary, high
school, and unified school districts within the county in proportion
to each school district's average daily attendance, as certified by
the Superintendent of Public Instruction for purposes of the advance
apportionment of state aid in the then current fiscal year, without
respect to the allocation of property tax revenues pursuant to
Chapter 6 (commencing with Section 95) of Part 0.5, and without
respect to allocation and payment of funds as provided for in
subdivision (b) of Section 33670 of the Health and Safety Code, an
amount equal to the additional revenues generated by the rate levied
pursuant to subdivision (a) of Section 1 of Article XIII A of the
California Constitution applied to the increased assessments for the
current roll under this chapter. Additional revenues generated by a
rate or rates levied in excess of the limitation prescribed by
subdivision (a) of Section 1 of Article XIII A of the California
Constitution shall be allocated to the fund for which the tax rate or
rates were levied.
(b) For the 1984-85 fiscal year, the county auditor shall, without
respect to the allocation of property tax revenues pursuant to
Chapter 6 (commencing with Section 95) of Part 0.5, do all of the
following:
(1) Make the allocation and payment of funds as provided in
Section 33670 of the Health and Safety Code.
(2) Allocate to the county the amount determined pursuant to
Section 75.60.
(3) Allocate to the county an amount equal to the total amount of
additional revenues generated by the rate levied pursuant to
subdivision (a) of Section 1 of Article XIII A of the California
Constitution applied to the increased assessments under this chapter,
less the amount determined pursuant to paragraphs (1) and (2), the
remainder multiplied by the county's property tax apportionment
factor determined pursuant to Section 97.5.
(4) Allocate to each community college district and county
superintendent of schools within the county an amount equal to the
total amount of additional revenues generated by the rate levied
pursuant to subdivision (a) of Section 1 of Article XIII A of the
California Constitution applied to the increased assessments under
this chapter, less the amount determined pursuant to paragraphs (1)
and (2), the remainder multiplied by each county superintendent of
schools' and community college district's property tax apportionment
factor determined pursuant to Section 97.5.
(5) Allocate to each city within the county an amount equal to the
total amount of additional revenue generated by the rate levied
pursuant to subdivision (a) of Section 1 of Article XIII A of the
California Constitution applied to the increased assessments under
this chapter, less the amount determined pursuant to paragraphs (1)
and (2), the remainder multiplied by each city's property tax
apportionment factor determined pursuant to Section 97.5.
(6) Allocate to each special district within the county an amount
equal to the total amount of additional revenues generated by the
rate levied pursuant to subdivision (a) of Section 1 of Article XIII
A of the California Constitution applied to the increased assessments
under this chapter, less the amount determined pursuant to
paragraphs (1) and (2), the remainder multiplied by each special
district's property tax apportionment factor determined pursuant to
Section 97.5. The amount allocated to each special district which is
governed by the board of supervisors of a county or whose governing
board is the same as the board of supervisors of a county, shall be
subject to Section 98.6.
(7) Allocate the remaining revenues generated by the rate levied
pursuant to subdivision (a) of Section 1 of Article XIII A of the
California Constitution applied to the increased assessments under
this chapter to all elementary, high school, and unified school
districts within the county in proportion to each school district's
average daily attendance, as certified by the Superintendent of
Public Instruction for purposes of the advance apportionment of state
aid in the then current fiscal year.
(8) Allocate additional revenues generated by a rate levied in
excess of the limitation prescribed by subdivision (a) of Section 1
of Article XIII A of the California Constitution to the fund or funds
for which the tax rate or rates were levied.
These allocations shall be made on a timely basis but no later
than 30 calendar days after the close of the preceding monthly or
four-weekly accounting period.
(c) For the 1985-86 fiscal year, and each fiscal year thereafter,
the county auditor shall, without respect to the allocation of
property tax revenues pursuant to Chapter 6 (commencing with Section
95) of Part 0.5, do all of the following:
(1) Make the allocation and payment of funds as provided in
Section 33670 of the Health and Safety Code.
(2) Allocate and pay to the county an amount equal to the total
amount of additional revenues generated by the rate levied pursuant
to subdivision (a) of Section 1 of Article XIII A of the California
Constitution applied to the increased assessments under this chapter,
less the amount determined pursuant to paragraph (1), the remainder
multiplied by the county's property tax apportionment factor
determined pursuant to Section 97.5. 96.2.
(3) Allocate and pay to each county superintendent of schools and
community college district within the county an amount equal to the
total amount of additional revenues generated by the rate levied
pursuant to subdivision (a) of Section 1 of Article XIII A of the
California Constitution applied to the increased assessments under
this chapter, less the amount determined pursuant to paragraph (1),
the remainder multiplied by each county superintendent of schools'
and community college district's property tax apportionment factor
determined pursuant to Section 97.5. 96.2.
(4) Allocate and pay to each city within the county an amount
equal to the total amount of additional revenues generated by the
rate levied pursuant to subdivision (a) of Section 1 of Article XIII
A of the California Constitution applied to the increased assessments
under this chapter, less the amount determined pursuant to paragraph
(1), the remainder multiplied by each city's property tax
apportionment factor determined pursuant to Section 97.5.
96.2.
(5) Allocate and pay to each special district within the county an
amount equal to the total amount of additional revenues generated by
the rate levied pursuant to subdivision (a) of Section 1 of Article
XIII A of the California Constitution applied to the increased
assessments under this chapter, less the amount determined pursuant
to paragraph (1), the remainder multiplied by each special district's
property tax apportionment factor determined pursuant to Section
97.5. 96.2. The amount allocated to
each special district which is governed by the board of supervisors
of a county or whose governing body is the same as the board of
supervisors of a county, shall be subject to Section 98.6.
(6) Allocate and pay the remaining revenues generated by the rate
levied pursuant to subdivision (a) of Section 1 of Article XIII A of
the California Constitution applied to the increased assessments
under this chapter to all elementary, high school, and unified school
districts within the county in proportion to each school district's
average daily attendance, as certified by the Superintendent of
Public Instruction for the purposes of the advance apportionment of
state aid in the then current fiscal year.
(7) Allocate and pay additional revenues generated by a rate
levied in excess of the limitation prescribed by subdivision (a) of
Section 1 of Article XIII A of the California Constitution to the
fund or funds for which the tax rate or rates were levied.
These allocations and payments shall be made on a timely basis but
no later than 30 calendar days after the close of the preceding
monthly or four-weekly accounting period. For a county with a
population of 500,000 or less, the allocations may be made on a
biannual basis.
(d) For purposes of the certification made by the Superintendent
of Public Instruction pursuant to paragraph (6) of
subdivision (a), (c), the average daily
attendance of the following school districts shall be deemed to be
zero:
(1) In the case of multicounty school districts, the portions of
the school districts located other than in the county of control.
(2) A school district that is an excess tax school entity, as
defined in subdivision (n) of Section 95, in the prior fiscal year.
(e) The Superintendent of Public Instruction shall certify the
appropriate counts of average daily attendance pursuant to
subdivision (a) to each county auditor no later than July 15 of each
applicable fiscal year.
(f) If the average daily attendance of all elementary, high
school, and unified school districts within the county is deemed to
be zero by the Superintendent of Public Instruction pursuant to
subdivision (d), the county auditor
shall reallocate the revenues described in paragraph
(6) of subdivision (c) to the entities listed in paragraphs (2) to
(5), inclusive, of subdivision (c), in proportion to each entity's
percentage of revenues in comparison to the aggregate total of
revenues.
(f)
(g) On or before November 15 and April 15, the auditor
of each county shall furnish to the Superintendent of Public
Instruction the estimated amount of tax receipts pursuant to this
section of each school district situated within his or her county.
(g)
(h) In the event property tax revenues under this
chapter are generated by a change in ownership or completed new
construction which occurred on or before May 31, 1984, but are
collected subsequent to the 1983-84 fiscal year, the revenues for the
current roll shall be allocated to school districts as if they had
been collected and allocated during this 1983-84 fiscal year. Any of
the aforementioned revenues which are collected in the 1984-85 fiscal
year shall be applied to school apportionments for the 1984-85
fiscal year.
SEC. 89. Section 95.5 is added to the
Revenue and Taxation Code , to read:
95.5. (a) The Legislature finds and declares all of the
following:
(1) In recognition of the fact that over 50 percent of annual
property tax revenues accrue to K-14 schools and county offices of
education, and thereby help to offset the state's General Fund
obligation to those entities, the state has a vested financial
interest in ensuring that county assessors have the resources
necessary to fairly and efficiently administer the county property
tax rolls. Fair and efficient administration includes, but is not
limited to, the expeditious enrollment of properties that are newly
constructed or that change ownership, the timely levying of
supplemental assessments when ownership changes occur, the timely
reassessment of property to reflect market values, and the defense of
assessed valuations that county assessors believe have been
improperly appealed.
(2) It is the intent of the Legislature to establish a three-year
pilot program limited to nine competitively selected county assessors'
offices to quantify the benefit of providing county assessors with
state grants to improve their ability to discharge these, and related
essential duties.
(3) The success of the pilot program shall be determined based on
whether the assessment activities funded with pilot program funds in
each county have enhanced countywide equalization by properly valuing
property, and have thereby generated property tax revenues for K-14
schools and county offices of education in an amount that is not less
than the total amount of General Fund revenues expended to fund the
pilot program in each participating county.
(b) For the 2014-15 fiscal year to the 2016-17 fiscal year,
inclusive, there is hereby created the State-County Assessors'
Partnership Agreement Program, to be administered by the Department
of Finance.
(1) Program funding shall be subject to appropriation in the
annual Budget Act. The program shall be inoperative in any fiscal
year in which an appropriation is not provided.
(2) Each participating county shall annually match, on a
dollar-for-dollar basis, the program funds apportioned to their
county assessor's office.
(3) Program funds provided to participating county assessors shall
be used to supplement, and not supplant, existing funding. For
purposes of this paragraph, base staffing and funding levels shall be
calculated as of June 30, 2014, unless otherwise authorized by the
Department of Finance.
(4) (A) The costs paid under the program shall be both of the
following:
(i) Actual administrative costs for purposes of Section 75.60.
(ii) Property tax administrative costs for purposes of Section
95.3.
(B) For purposes of this paragraph, "costs paid under the program"
includes both of the following:
(i) Program funds provided to participating county assessor's
offices by the state.
(ii) Matching funds provided by the county.
(c) All counties shall be eligible to apply to participate in the
program. However, the Department of Finance shall limit program
participation as follows:
(1) (A) No more than two program participants shall be selected
from counties of the first or second class, inclusive, as defined in
Sections 28022 and 28023 of the Government Code.
(B) Each county selected from within the classes specified in
subparagraph (A) shall be eligible to receive at least 25 percent of
the amount annually appropriated for the program, not to exceed one
million eight hundred seventy-five thousand dollars ($1,875,000).
(C) If the number of approved program participants is not
sufficient to meet the number of participants allowed under
subparagraph (A), the number of program participants under
subparagraph (A) of paragraph (2) may be increased by the remaining
number of participants from this paragraph. The remaining funds will
be added to the funds available within subparagraph (B) of paragraph
(2) so that the total program funds will be available for
distribution equally among the participants in paragraph (2).
(2) (A) No more than four program participants shall be selected
from counties of the third to 12th classes, inclusive, as defined in
Sections 28024 to 28033, inclusive, of the Government Code.
(B) Each county selected from within the classes specified in
subparagraph (A) shall be eligible to receive at least 11 percent of
the amount annually appropriated for the program, not to exceed eight
hundred twenty-five thousand dollars ($825,000).
(C) If the number of approved program participants is not
sufficient to meet the number of participants allowed under
subparagraph (A), the number of program participants under
subparagraph (A) of paragraph (3) may be increased by the remaining
number of participants from this paragraph. The remaining funds will
be added to the funds available within subparagraph (B) of paragraph
(3) so that the total program funds set aside will be available for
distribution equally among the participants in paragraph (3).
(3) (A) No more than three program participants shall be selected
from counties of the 13th to 58th classes, inclusive, as defined in
Sections 28034 to 28079, inclusive, of the Government Code.
(B) Each county selected from within the classes specified in
subparagraph (A) shall be eligible to receive at least 2 percent of
the amount annually appropriated for the program, not to exceed one
hundred fifty thousand dollars ($150,000).
(4) County populations for purposes of this subdivision shall be
determined based on the most recent January estimate by the
population research unit of the Department of Finance.
(d) County assessors' offices that elect to apply to participate
in the program shall do all the following on or before September 15,
2014:
(1) Transmit to the Department of Finance a resolution of the
county board of supervisors that states the county agrees to provide
the assessor's office with matching funds, on a dollar-for-dollar
basis, in each year that the assessor's office participates in the
program.
(2) Submit to the Department of Finance an application, in the
form and manner specified by Department of Finance. The Department of
Finance may reject applications not received by the specified date.
At a minimum, the application shall include the following:
(A) The staff the county assessor proposes to fund using program
funds and matching county funds.
(B) The estimated value that the staff identified in subparagraph
(A) will result in a change to the county property tax roll pursuant
to work performed in accordance with subparagraph (A) of paragraph
(1) of subdivision (f). This information shall be provided for each
of the three fiscal years that the program is authorized to operate.
The application shall separately state each of the following:
(i) The dollar value changed on the county property tax roll by
county assessor's office staff in the 2013-14 fiscal year through
performance of the tasks described in subparagraph (A) of paragraph
(1) of subdivision (f).
(ii) The estimated countywide backlog of newly constructed real
property that has not yet been enrolled and the estimated rate at
which the staff identified in subparagraph (A) will enroll that
property.
(C) The estimated value that the staff identified in subparagraph
(A) will result in a change to the county property tax roll pursuant
to work performed in accordance with subparagraph (B) of paragraph
(1) of subdivision (f). This information shall be provided for each
of the three fiscal years that the program is authorized to operate.
The application shall separately state each of the following:
(i) The dollar value changed on the county property tax roll by
county assessor's office staff in the 2013-14 fiscal year through
performance of the tasks described in subparagraph (B) of paragraph
(1) of subdivision (f).
(ii) The estimated countywide backlog of real property that has
changed ownership and not yet been reassessed and the estimated
dollar value of that real property.
(D) The estimated value that the staff identified in subparagraph
(A) will result in a change to the county property tax roll pursuant
to work performed in accordance with subparagraph (C) of paragraph
(1) of subdivision (f). This information shall be provided for each
of the three fiscal years that the program is authorized to operate.
The application shall separately state each of the following:
(i) The dollar value changed on the county property tax roll by
county assessor's office staff in the 2013-14 fiscal year through
performance of the tasks described in subparagraph (C) of paragraph
(1) of subdivision (f).
(ii) The estimated countywide backlog of supplemental assessments
that have not been issued and the estimated dollar value of those
assessments.
(E) The estimated value that the staff identified in subparagraph
(A) will result in a change to the county property tax roll pursuant
to work performed in accordance with subparagraph (D) of paragraph
(1) of subdivision (f). This information shall be provided for each
of the three fiscal years that the program is authorized to operate.
The application shall separately state each of the following:
(i) The dollar value changed on the county property tax roll by
county assessor's office staff in the 2013-14 fiscal year through
performance of the tasks described in subparagraph (D) of paragraph
(1) of subdivision (f).
(ii) The estimated countywide backlog of real properties that have
not been reassessed upon modification and the estimated dollar value
that those modifications will add to the county property tax roll.
(F) The estimated value that the staff identified in subparagraph
(A) will result in a change to the county property tax roll pursuant
to work performed in accordance with subparagraph (E) of paragraph
(1) of subdivision (f). This information shall be provided for each
of the three fiscal years that the program is authorized to operate.
The application shall separately state each of the following:
(i) The dollar value changed on the county property tax roll by
county assessor's office staff in the 2013-14 fiscal year through
performance of the tasks described in subparagraph (E) of paragraph
(1) of subdivision (f).
(ii) The estimated countywide backlog of escaped assessments and
the estimated dollar value of those assessments.
(G) The estimated value that the staff identified in subparagraph
(A) will add to the county property tax roll pursuant to work
performed in accordance with subparagraph (F) of paragraph (1) of
subdivision (f). This information shall be provided for each of the
three fiscal years that the program is authorized to operate. The
application shall separately state each of the following:
(i) The dollar value changed on the county property tax roll by
county assessor's office staff in the 2013-14 fiscal year through
performance of the tasks described in subparagraph (F) of paragraph
(1) of subdivision (f).
(ii) The estimated countywide backlog of properties that have not
been reassessed to market value subsequent to having their assessed
values reduced and the estimated dollar value of those reassessments.
(H) The estimated number of assessment appeals to which the staff
identified in subparagraph (A) will respond in accordance with
subparagraph (G) of paragraph (1) of subdivision (f). This
information shall be provided for each of the three fiscal years that
the program is authorized to operate. The application shall
separately state each of the following:
(i) The dollar value retained on the county property tax roll by
county assessor's office staff in the 2013-14 fiscal year through
performance of the tasks described in subparagraph (G) of paragraph
(1) of subdivision (f).
(ii) The number of assessment appeals to which the county assessor
was unable to respond due to staffing shortages in the 2013-14
fiscal year, and the dollar amount by which the county property tax
roll was consequently reduced.
(I) The estimated value that the staff identified in subparagraph
(A) will result in a change to the county property tax roll pursuant
to work performed in accordance with subparagraph (H) of paragraph
(1) of subdivision (f). This information shall be provided for each
of the three fiscal years that the program is authorized to operate.
The application shall separately state each of the following:
(i) The dollar value changed on the county property tax roll by
county assessor's office staff in the 2013-14 fiscal year through
performance of the tasks described in subparagraph (H) of paragraph
(1) of subdivision (f).
(ii) The estimated amount resulting in change to the county
property tax roll due to additional audits completed pursuant to
Sections 469 and 470 and the estimated dollar value of those
assessments.
(J) The estimated value that the staff identified in subparagraph
(A) will result in a change to the county property tax roll pursuant
to work performed in accordance with subparagraph (I) of paragraph
(1) of subdivision (f). This information shall be provided for each
of the three fiscal years that the program is authorized to operate.
The application shall separately state each of the following:
(i) The dollar value changed on the county property tax roll by
county assessor's staff in the 2013-14 fiscal year through
performance of the tasks described in subparagraph (I) of paragraph
(1) of subdivision (f).
(ii) The estimated amount resulting in a change to the county
property tax roll due to discovering taxable property pursuant to
Sections 405 and 531, the estimated dollar value of those
assessments, and the estimated rate at which the staff identified in
subparagraph (A) will issue those assessments.
(K) State the amount of program funds and county matching funds
that the county assessor proposes to expend for each of paragraphs
(2) and (3) of subdivision (f).
(e) (1) The Department of Finance shall review the applications,
select the program participants on the strength of those
applications, and notify the participants of their selection no later
than October 15, 2014. No later than October 22, 2014, and each
October 22 thereafter while the program is operative, the Department
of Finance shall instruct the office of the State Controller to remit
to each participating county the appropriate sum in accordance with
subdivision (c).
(2) It is the intent of the Legislature that the Department of
Finance seek to ensure that the applicants selected to participate in
the program consist of a representative cross section of the state's
county assessor's offices. Therefore, it is the intent of the
Legislature that the Department of Finance consider factors other
than revenue generating potential when reviewing applications.
(f) County assessors' offices shall use program funds only for the
following purposes, provided that the funds may be used for
additional, related purposes upon the receipt of specific
authorization from the Department of Finance:
(1) The payment of salaries and benefits to assessor's office
staff hired or otherwise funded subsequent to the Department of
Finance's approval of the assessor's program participation
application pursuant to subdivision (d), to assist with the following
activities:
(A) Assessing and enrolling newly constructed real property.
(B) Reassessing real property that has changed ownership.
(C) Processing supplemental assessments for real property that has
changed ownership.
(D) Reassessing existing real property that has been modified in a
way that changes its current assessed value.
(E) Reassessing real and personal property that has escaped
assessment, as defined in Section 531.
(F) Reassessing to current market value those real properties for
which the county assessor previously reduced the assessed valuation
pursuant to subdivision (b) of Section 2 of Article XIII A of the
Constitution.
(G) Responding to real property assessment appeals pursuant to
Part 3 (commencing with Section 1601) of Division 1.
(H) Conducting property tax audits pursuant to Sections 469 and
470.
(I) Discovering real and personal property not previously
assessed.
(2) Procuring office space for staff hired pursuant to paragraph
(1).
(3) Procuring office supplies and related items for staff hired
pursuant to paragraph (1).
(4) Procuring information technology systems and software to
assist with the activities specified in subparagraphs (A) to (G),
inclusive, of paragraph (1) by increasing efficiencies and
effectiveness of property tax administration, and allowing for
appropriate utilization of program receipts. For purposes of this
paragraph, "information technology systems and software" shall
exclude desktop computers, portable computers, tablet computers, and
mobile phones, unless specifically authorized by the Department of
Finance.
(g) No later than April 15, 2015, and each subsequent April 15
that the program is operative, each participating county assessor's
office shall report the following information to the Department of
Finance in the form and manner specified by the Department of
Finance:
(1) The matching funds provided by the county in the fiscal year.
(2) A status report for completing the assessment activities using
program funds and county matching funds to meet the benchmarks
specified in paragraph (2) of subdivision (a) in the next fiscal
year.
(h) No later than September 15, 2015, and each subsequent
September 15 that the program is operative, each participating county
assessor's office shall report the following information to the
Department of Finance in the form and manner specified by the
Department of Finance:
(1) (A) The matching funds provided by the county in the fiscal
year.
(B) If the matching funds provided by the county are less than the
amount determined for that year by the Department of Finance
pursuant to paragraph (2) of subdivision (b), the Director of Finance
shall immediately terminate the county's participation in the
program.
(2) The number of staff whose salaries and benefits were paid in
full with program grant funds and with county matching funds in the
fiscal year.
(3) The number of properties assessed and enrolled in the fiscal
year pursuant to subparagraph (A) of paragraph (1) of subdivision (f)
by the staff identified in paragraph (1) of subdivision (f), and the
total assessed value of those properties. If applicable, the county
assessor shall separately report the number of properties assessed
and enrolled in the fiscal year using the information technology
systems and software identified in paragraph (4) of subdivision (f)
and the total assessed value of those properties.
(4) The number of properties reassessed in the fiscal year
pursuant to subparagraph (B) of paragraph (1) of subdivision (f) by
the staff identified in paragraph (1) of subdivision (f), and the
total roll value of those reassessments. If applicable, the county
assessor shall separately report the number of properties reassessed
in the fiscal year using the information technology systems and
software identified in paragraph (4) of subdivision (f) and the total
roll value of those reassessments.
(5) The number of supplemental assessments enrolled in the fiscal
year pursuant to subparagraph (C) of paragraph (1) of subdivision (f)
by the staff identified in paragraph (1) of subdivision (f), and the
total roll value of those supplemental assessments. If applicable,
the county assessor shall separately report the number of
supplemental assessments enrolled in the fiscal year using the
information technology systems and software identified in paragraph
(4) of subdivision (f) and the total roll value of those supplemental
assessments.
(6) The number of properties reassessed in the fiscal year
pursuant to subparagraph (D) of paragraph (1) of subdivision (f) by
the staff identified in paragraph (1) of subdivision (f) and the
total roll value of those reassessments. If applicable, the county
assessor shall separately report the number of properties reassessed
in the fiscal year using the information technology systems and
software identified in paragraph (4) of subdivision (f) and the total
roll value of those reassessments.
(7) The number of escaped assessments enrolled in the fiscal year
pursuant to subparagraph (E) of paragraph (1) of subdivision (f) by
the staff identified in paragraph (1) of subdivision (f), and the
total roll value of those assessments. If applicable, the county
assessor shall separately report the number of escaped assessments
enrolled in the fiscal year using the information technology systems
and software identified in paragraph (4) of subdivision (f) and the
total roll value of those assessments.
(8) The number of properties reassessed in the fiscal year
pursuant to subparagraph (F) of paragraph (1) of subdivision (f) by
the staff identified in paragraph (1) of subdivision (f), and the
total roll value of those reassessments. If applicable, the county
assessor shall separately report the number of properties reassessed
in the fiscal year using the information technology systems and
software identified in paragraph (4) of subdivision (f) and the total
roll value of those reassessments.
(9) The number of assessment appeals successfully responded to in
the fiscal year pursuant to subparagraph (G) of paragraph (1) of
subdivision (f) by the staff identified in paragraph (1) of
subdivision (f) and the total value retained on the roll as a result.
For purposes of this paragraph, "successfully responded to" means
the assessment appeals board did not reduce the assessed value to
that claimed by the appellant.
(10) The additional number of property tax audits completed in the
fiscal year pursuant to subparagraph (H) of paragraph (1) of
subdivision (f) by the staff identified in paragraph (1) of
subdivision (f) and the total value retained on the roll as a result.
For purposes of this paragraph, additional audits refers to the
number greater than the required volume of pool audits pursuant to
Section 469.
(11)
The number of properties discovered pursuant subparagraph (I) of
paragraph (1) of subdivision (f) by the staff identified in paragraph
(1) of subdivision (f) and the total value retained on the roll as a
result.
(i) The Department of Finance shall annually review the
information submitted pursuant to subdivision (g), and shall
determine for each county whether the work performed using program
funds and county matching funds has met the benchmarks specified in
paragraph (2) of subdivision (a). Subsequent to the provision of 30
days' notice to the Joint Legislative Budget Committee, the Director
of Finance may terminate the participation of a county assessor's
office in the program under the following circumstances:
(1) If the program activities of the assessor's office have not
met the benchmarks specified in paragraph (2) of subdivision (a), and
if the Director of Finance believes the assessor's office does not
have a viable plan for performing additional assessment activities
that will meet those benchmarks in the next fiscal year.
(2) If the program funds were expended for purposes not authorized
in subdivision (f), or as otherwise approved by the Department of
Finance pursuant to that subdivision.
(3) If the Director of Finance believes that the county's
participation is no longer in the best fiscal or policy interest of
the state or of the affected taxing entities.
(j) Upon the request of the Department of Finance, participating
county assessors' offices shall provide the Department of Finance
with any supplemental information necessary to substantiate the
information contained in the report submitted pursuant to subdivision
(g).
(k) No later than May 8, 2017, the Department of Finance shall
provide the Joint Legislative Budget Committee with a report that, at
a minimum, includes the following information for each county and
for each fiscal year that the program was in operation:
(1) The assessed value of properties enrolled pursuant to
subparagraph (A) of paragraph (1) of subdivision (f), using program
funds and county matching funds. If applicable, the Department of
Finance shall separately report the assessed value of properties
enrolled using the information technology systems and software
identified in paragraph (4) of subdivision (f).
(2) The increase in assessed value of properties reassessed
pursuant to subparagraph (B) of paragraph (1) of subdivision (f),
using program funds and county matching funds. If applicable, the
Department of Finance shall separately report the increase in
assessed value of properties reassessed using the information
technology systems and software identified in paragraph (4) of
subdivision (f).
(3) The total value of the supplemental assessments levied
pursuant to subparagraph (C) of paragraph (1) of subdivision (f),
using program funds and county matching funds. If applicable, the
Department of Finance shall separately report the value of the
supplemental assessments levied using the information technology
systems and software identified in paragraph (4) of subdivision (f).
(4) The increase in assessed value of properties reassessed
pursuant to subparagraph (D) of paragraph (1) of subdivision (f),
using program funds and county matching funds. If applicable, the
Department of Finance shall separately report the increase in
assessed value of properties reassessed using the information
technology systems and software identified in paragraph (4) of
subdivision (f).
(5) The increase in assessed value associated with escaped
assessments enrolled pursuant to subparagraph (E) of paragraph (1) of
subdivision (f), using program funds and county matching funds. If
applicable, the Department of Finance shall separately report the
increase in assessed value associated with escaped assessments
enrolled using the information technology systems and software
identified in paragraph (4) of subdivision (f).
(6) The increase in assessed value associated with properties
reassessed pursuant to subparagraph (F) of paragraph (1) of
subdivision (f), using program funds and county matching funds. If
applicable, the Department of Finance shall separately report the
increase in assessed value associated with properties reassessed
using the information technology systems and software identified in
paragraph (4) of subdivision (f).
(7) The number of assessment appeals successfully responded to
pursuant to subparagraph (G) of paragraph (1) of subdivision (f),
using program funds and county matching funds, and the amount of
assessed value retained on the roll as a result. For purposes of this
paragraph, "successfully responded to" means the assessment appeals
board did not reduce the assessed value to that claimed by the
appellant.
(8) The increase in assessed value associated with property tax
audits pursuant to subparagraph (H) of paragraph (1) of subdivision
(f), using program funds and county matching funds. If applicable,
the Department of Finance shall separately report the increase in
assessed value associated with escaped assessments enrolled using the
information technology systems and software identified in paragraph
(4) of subdivision (f).
(9) The increase in assessed value associated with the discovery
of previously unassessed property pursuant to subparagraph (I) of
paragraph (1) of subdivision (f), using program funds and county
matching funds. If applicable, the Department of Finance shall
separately report the increase in assessed value associated with
escaped assessments enrolled using the information technology systems
and software identified in paragraph (4) of subdivision (f).
(10) An estimate of the countywide property tax revenue resulting
from the assessed valuation increases identified pursuant to
paragraphs (1) to (9), inclusive, and paragraphs (8) and (9).
(11) An estimate of the countywide property tax revenue that was
retained as a result of the appeals workload identified in paragraph
(7).
(12) An estimate of the amount of revenue identified in paragraphs
(10) and (11) that accrued to the following entities:
(A) K-12 school districts.
(B) California Community College districts.
(C) County Offices of Education.
(13) A determination as to whether the program succeeded according
to the criteria specified in paragraph (3) of subdivision (a), and a
recommendation as to whether the program should be continued in its
current form, expanded to include additional county assessors'
offices, or terminated in the 2017-18 fiscal year.
(l ) The Legislature finds and declares there is a
compelling public interest in allowing the Department of Finance to
implement and administer the provisions of this section as
expeditiously as possible, and to thereby accelerate countywide
equalization efforts. The Department of Finance is therefore exempt
from the provisions of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code) for the express purpose of carrying out the
duties in this section.
SEC. 90. Section 1112 of the
Unemployment Insurance Code is amended to read:
1112. (a) Any employer who without good cause fails to pay any
contributions required of him or her or of his or her workers, except
amounts assessed under Article 8 of this chapter, within the time
required shall pay a penalty of 10 15
percent of the amount of those contributions.
(b) Any employer required to remit payments by electronic funds
transfer pursuant to Section 13021, who without good cause remits
those amounts by means other than electronic funds transfer shall pay
a penalty of 10 15 percent of the
amount of those contributions.
(c) The changes made to this section by the act adding this
subdivision shall apply on and after July 1, 2014.
SEC. 91. Section 1112.5 of the
Unemployment Insurance Code is amended to read:
1112.5. (a) Any employer who without good cause fails to file the
return and reports required by subdivision (a) of Section 1088 and
subdivision (a) of Section 13021 within 60 days of the time required
under subdivision (a) of Section 1110 shall pay a penalty of
10 15 percent of the amount of contributions
and personal income tax withholding required by this report. This
penalty shall be in addition to the penalties required by Sections
1112 and 1126.
(b) For purposes of subdivision (a), the amount of contributions
and personal income tax required by the report of contributions shall
be reduced by the amount of any contributions and personal income
tax paid on or before the prescribed payment dates.
(c) The changes made to this section by the act adding this
subdivision shall apply on and after July 1, 2014.
SEC. 92. Section 1114 of the
Unemployment Insurance Code is amended to read:
1114. (a) Any employer who, without good cause, fails to file
within 15 days after service by the director of notice pursuant to
Section 1206 of a specific written demand therefor, a report of wages
of each of his or her workers required by this division, shall pay
in addition to other amounts required, for each unreported wage item
a penalty of ten twenty dollars
($10). ($20).
(b) Any employer required by this division to file a report of
wages of each of his or her workers on magnetic media as prescribed
by subdivision (f) of Section 1088, who, without good cause, instead
files a report of wages on paper or in another form, shall pay in
addition to other amounts required, for each wage item a penalty of
ten twenty dollars ($10).
($20).
(c) The changes made to this section by the act adding this
subdivision shall apply on and after July 1, 2014.
SEC. 93. Section 1126 of the
Unemployment Insurance Code is amended to read:
1126. (a) If any employing unit fails to
make a return or report as required under this division, the director
shall make an estimate based upon any information in his or her
possession or that may come into his or her possession of the amount
of wages paid for employment in the period or periods for which no
return or report was filed and upon the basis of the estimate shall
compute and assess the amounts of employer and worker contributions
payable by the employing unit, adding thereto a penalty of
10 15 percent of the amount of contributions.
(b) The changes made to this section by the act adding this
subdivision shall apply on and after July 1, 2014.
SEC. 94. Section 1127 of the
Unemployment Insurance Code is amended to re
ad:
1127. (a) If the director is not satisfied
with any return or report made by any employing unit of the amount of
employer or worker contributions, he or she may compute the amount
required to be paid upon the basis of facts contained in the return
or reports or may make an estimate upon the basis of any information
in his or her possession or that may come into his or her possession
and make an assessment of the amount of the deficiency. If any part
of the deficiency is due to negligence or intentional disregard of
this division or authorized regulations, a penalty of 10
15 percent of the amount of the deficiency shall
be added to the assessment.
(b) The changes made to this section by the act adding this
subdivision shall apply on and after July 1, 2014.
SEC. 95. Section 1135 of the
Unemployment Insurance Code is amended to read:
1135. (a) Assessments under this article
become delinquent if not paid on or before the date they become final
pursuant to Sections 1036, 1221, 1222, and 1224. There shall be
added to the amount of each delinquent assessment a penalty of
10 15 percent of the amount thereof
exclusive of interest and penalties.
(b) The changes made to this section by the act adding this
subdivision shall apply on and after July 1, 2014.
SEC. 96. Section 1585.5 of the
Unemployment Insurance Code is amended to read:
1585.5. (a) The director shall estimate the
amount of penalties and interest collected by the department
pursuant to Division 6 (commencing with Section 13000) relating to
the withholding of personal income tax and shall transfer such amount
to the Personal Income Tax Fund on a quarterly basis.
(b) For the 2014-15 fiscal year, the quarterly transfer to the
Personal Income Tax Fund pursuant to subdivision (a) is suspended.
SEC. 97. Section 2 of Chapter 469 of the Statutes
of 2002 is amended to read:
Sec. 2. There is hereby appropriated the sum of one hundred
thousand dollars ($100,000) for each fiscal year from the General
Fund to the California State Military Museum
Military Department for the establishment and operation of the
museum and resource center specified
California State Military Museum and Resource Center described
in Section 179 of the Military and Veterans Code.
SEC. 98. The amount of two million dollars
($2,000,000) is hereby appropriated from the General Fund to the
Governor's Office of Business and Economic Development on a one-time
basis to be used to draw down federal funding in support of the Small
Business Development Center Network Program. These funds shall be
available for encumbrance and expenditure until June 30, 2017.
SEC. 99. This act is a bill providing for
appropriations related to the Budget Bill within the meaning of
subdivision (e) of Section 12 of Article IV of the California
Constitution, has been identified as related to the budget in the
Budget Bill, and shall take effect immediately.
SEC. 100. If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code.
SECTION 1. It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2014.