BILL NUMBER: SB 820 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 15, 2013
INTRODUCED BY Committee on Governmental Organization (Senators
Wright (Chair), Berryhill, Calderon, Cannella, Correa, De León,
Galgiani, Hernandez, Lieu, Nielsen, and Padilla)
MARCH 14, 2013
An act relating to state government. An
act to amend Sections 19821, 19876, 19912, and 19951 of the Business
and Professions Code, to amend Sections 1916.12, 1918.5, and 5405 of
the Civil Code, to amend Sections 14024, 14025, 14026, 14027, 14028,
14030.2, 14034, 14036, 14037, 14037.5, 14037.7, 14038, 14039, 14040,
14041, 14043, 14061, 14065, 14066, 14070, 14071, 14071.5, 14072,
14074, 14075, 14076, 14085, 14086, 29503, and 31004 of, and to amend
the heading of Article 4 (commencing with Section 14025) of Chapter 1
of Part 5 of Division 3 of Title 1 of, the Corporations Code, to
amend Sections 300, 301, 320, 326, 350, 353, 4805.055, 5104, 12003,
14003, 14200.1, 14200.2, 17002, 18002, 22005, 30002, 31055, and 50003
of, and to repeal and add Sections 351 and 371 of, the
Financial Code, to amend Sections 8684.2, 11532, 11534, 11538, 11539,
11540, 11541, 11542, 11544, 11546, 11549, 11549.1, 11549.3, 12802.8,
13995.60, 13995.64.5, 13995.65.5, 13997.7, 14030, 14998.3, 14998.4,
14998.6, 14998.7, 15251, 15277, 53108.5, 53113, 53114, 53114.1,
53114.2, 53115, 53115.1, 53115.2, 53115.3, 53116, 53119, 53120,
53126.5, 53661, and 65040.12 of, and to amend the heading of Article
5 (commencing with Section 13995.50) of Chapter 1 of Part 4.7 of
Division 3 of Title 2 of, and to repeal Section 13995.92 of, the
Government Code, to amend Sections 71.4, 71.7, 72.6, 76.5, 76.6, 82,
and 82.3 of the Harbors and Navigation Code, to amend Sections
40448.6 and 44272 of the Health and Safety Code, to amend Sections
326.3 and 326.5 of the Penal Code, to amend Section 25464 of the
Public Resources Code, to amend Section 41136 of the Revenue and
Taxation Code, and to amend Sections 335, 10200, 10202.5, and 15002
of the Unemployment Insurance Code, relating to state government, and
declaring the urgency thereof, to take effect
immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 820, as amended, Committee on Governmental Organization.
Governor's Reorganization Plan No. 2 of 2012.
State government.
(1) Existing law and the Governor's Reorganization Plan No. 2 of
2012 (GRP 2), effective on July 3, 2012, and operative on July 1,
2013, assigns and reorganizes the functions of state government among
executive officers and agencies by creating the following general
agency structure in the executive branch: Business, Consumer
Services, and Housing; Government Operations; Corrections and
Rehabilitation; Labor and Workforce Development; California Health
and Human Services; Environmental Protection; Natural Resources; and
Transportation. In creating the new general agency structure,
existing law and the GRP 2, abolished certain existing state entities
and offices, including, among others, the Business, Transportation
and Housing Agency and its secretary.
This bill would generally enact the statutory changes to make
conforming name changes to properly reflect the assignment and
reorganization of the functions of state government among the newly
established executive entities and officers and reallocate certain
duties of abolished executive entities and officers to the newly
established ones.
(2) Existing law and the GRP 2 transfer the duties and authorities
of the Department of Boating and Waterways to the Division of
Boating and Waterways in the Department of Parks and Recreation and
reallocate specified duties between the division and the Boating and
Waterways Commission.
This bill would further modify duties between the division and the
commission, including, among others, removing requirements for the
consent of the commission for the department to make certain
transfers, loans, or grants under various programs and other
proposals, as specified.
(3) Existing law and the GRP 2 transfer a requirement that the
Business, Transportation and Housing Agency establish small business
financial development corporations to the Governor's Office of
Business and Economic Development.
This bill would make conforming changes with respect to the
transfer of this duty.
(4) Existing law authorizes the State Energy Resources
Conservation and Development Commission (Energy Commission) to work
with the Business, Transportation and Housing Agency to implement the
program funded by federal funds allocated to, and received by, the
state for energy-related projects pursuant to the American Recovery
and Reinvestment Act of 2009 and other federal acts related to the
American Recovery and Reinvestment Act of 2009.
This bill would authorize the Energy Commission to work instead
with the Governor's Office of Business and Economic Development.
(5) The California Tourism Marketing Act provides for the
establishment of the California Travel and Tourism Commission within
the Business, Transportation and Housing Agency.
This bill would remove references to the abolished agency in the
act and delete obsolete provisions.
(6) Existing law and the GRP 2 transfer the California Film
Commission and the Film California First Program from the Business,
Transportation and Housing Agency to the Governor's Office of
Business and Economic Development.
This bill would make administrative changes consistent with that
transfer.
(7) The GRP 2 reallocates certain licensing and regulatory
functions between the California Gambling Control Commission and the
Department of Justice related to gaming.
This bill would reallocate additional functions among the
commission to the department, including, among others, requiring the
department, rather than the commission, to decide whether the payment
of the annual gambling license fee is on an annual or installment
basis.
(8) Existing law and the GRP 2 reallocates certain duties and
functions of the Business, Transportation and Housing Agency related
to the small business loan guarantee program, the disaster assistance
loan program, the economic adjustment assistance grant, the
employment training panel, green collar jobs program, and the film
industry.
This bill would further reallocate the duties and functions of
this abolished agency with regard to these programs and this
industry.
(9) Existing law requires common interest developments to submit
specified information, including personal identifying information
regarding the president of the association, to the Secretary of
State, who is required to make the information available for
governmental purposes under specified conditions to certain entities,
including, among others, the Business, Transportation and Housing
Agency.
This bill would replace the abolished agency with the Business,
Consumer Services, and Housing Agency.
(10) Existing law authorizes the Secretary of Business,
Transportation and Housing to prescribe specified rules and
regulations relating to certain mortgage instruments.
This bill would transfer the duties of the abolished officer with
the Secretary of Business, Consumer Services, and Housing.
(11) Existing law authorizes the Governor to, with respect to the
Business, Transportation and Housing Agency, appoint a Deputy
Secretary of Housing to advise that agency's secretary on housing
matters.
The bill would modify the Governor's authorization to appoint a
Deputy Secretary of Housing Coordination to serve as the Secretary of
Transportation's primary advisor on housing matters, as specified.
(12) Existing law provides that, among other things, the powers
and duties of the Department of Transportation include investigating
and reporting to the Secretary of Business, Transportation and
Housing upon the consistency between housing plans and programs and
federal transportation plans and programs.
This bill would instead provide that the Department of
Transportation report under these circumstances to the Secretary of
Transportation and the Secretary of Business, Consumer Services, and
Housing, as specified.
(13) Existing law requires the Director of the Office of Planning
and Research to consult with the Secretary of Business,
Transportation and Housing, as specified.
This bill would instead require the director to consult with the
Secretary of Business, Consumer Services, and Housing under these
circumstances, as specified.
(14) The GRP 2 reorganizes the Department of Corporations and the
Department of Financial Institutions into divisions under the
Department of Business Oversight, within the Business, Consumer
Services, and Housing Agency. Under the GRP 2, the executive officer
of the Department of Business Oversight is the Commissioner of
Business Oversight, and the department's administration includes a
Deputy Commissioner of Business Oversight for the Division of
Corporations, and a Deputy Commissioner of Business Oversight for the
Division of Financial Institutions.
This bill would enact statutory changes to implement the
above-described organizational structure by transferring the
responsibilities of the Department of Corporations and the Department
of Financial Institutions to the newly established Department of
Business Oversight and its Division of Corporations and Division of
Financial Institutions, headed by Senior Deputy Commissioners and the
Office of Credit Unions, as specified. This bill would make other
conforming changes to the duties of the Department of Business
Oversight to include additional activities relating to the functions
of corporations and financial institutions. The bill would require
the Senior Deputy Commissioner of Business Oversight for the Division
of Financial Institutions to employ legal counsel to act as the
attorney for the commissioner under specified circumstances.
(15) The GRP 2 recasts the California Technology Agency as the
Department of Technology within the Government Operations Agency.
This bill would make various technical, nonsubstantive conforming
changes to further reflect this reorganization. This bill would also
designate that the Office of Technology Services and the Office of
Information Security, each within the Department of Technology, is
managed or under the direction of a chief. This bill would also
rename the Public Safety Communications Division, also within the
department, as the Public Safety Communications Office.
(16) This bill would become operative on July 1, 2013.
(17) This bill would declare that it is to take effect immediately
as an urgency statute.
Existing law and the Governor's Reorganization Plan No. 2 of 2012
(GRP 2), as of July 1, 2013, among other things, reorganizes state
government into the following agencies: Business, Consumer Services
and Housing, Government Operations, Corrections and Rehabilitation,
Labor and Workforce Development, California Health and Human
Services, Environmental Protection, Natural Resources, and
Transportation.
This bill would state the intent of the Legislature to enact
legislation to make conforming programmatic changes to implement the
provisions of GRP 2.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: no yes .
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19821 of the
Business and Professions Code is amended to read:
19821. (a) The commission shall cause to be made and kept a
record of all proceedings at regular and special meetings of the
commission. These records shall be open to public inspection.
(b) The commission department shall
maintain a file of all applications for licenses under this
chapter, together with chapter. The commission shall
maintain a record of all actions taken with respect to those
applications. The file and record shall be open to public inspection.
(c) The department and commission may maintain any other files and
records as they deem appropriate. Except as provided in this
chapter, the records of the department and commission are exempt from
disclosure under Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code.
(d) Except as necessary for the administration of this chapter, no
commissioner and no official, employee, or agent of the commission
or the department, having obtained access to confidential records or
information in the performance of duties pursuant to this chapter,
shall knowingly disclose or furnish the records or information, or
any part thereof, to any person who is not authorized by law to
receive it. A violation of this subdivision is a misdemeanor.
(e) Notwithstanding subdivision (k) of Section 1798.24 of the
Civil Code, a court shall not compel disclosure of personal
information in the possession of the department or the commission to
any person in any civil proceeding wherein the department or the
commission is not a party, except for good cause and upon a showing
that the information cannot otherwise be obtained. Nothing
herein This section shall be construed
to not authorize the disclosure of personal
information that would is otherwise
be exempt from disclosure.
SEC. 2. Section 19876 of the Business
and Professions Code is amended to read:
19876. (a) Subject to the power of the commission to deny,
revoke, suspend, condition, or limit any license, as provided in this
chapter, a license shall be renewed biennially.
(b) An application for renewal of a gambling license shall be
filed by the owner licensee or key employee with the
commission department no later than 120 calendar
days prior to the expiration of the current license. The commission
shall act upon any application for renewal prior to the date of
expiration of the current license. Upon renewal of any owner license,
the commission shall issue an appropriate renewal certificate or
validating device or sticker.
(c) Notwithstanding the provisions of subdivision (b), if an owner
licensee has submitted an application for renewal prior to the
original expiration date of the current license and the commission is
unable to act on the application prior to the expiration date, the
commission may extend the current license for up to 180 days.
(d) Unless the commission determines otherwise, renewal of an
owner's gambling license shall be deemed to effectuate the renewal of
every other gambling license endorsed thereon.
(e) In addition to the penalties provided by law, any owner
licensee who deals, operates, carries on, conducts, maintains, or
exposes for play any gambling game after the expiration date of the
gambling license is liable to the state for all license fees and
penalties that would have been due upon renewal.
(f) If an owner licensee fails to renew the gambling license as
provided in this chapter, the commission may order the immediate
closure of the premises and a cessation of all gambling activity
therein until the license is renewed.
(g) If an owner licensee submits an application for renewal of the
gambling license after the deadline set in subdivision (b) but
before the original expiration date of the license, the commission
may assess reasonable delinquency fees not to exceed three times the
usual application fee.
SEC. 3. Section 19912 of the Business
and Professions Code is amended to read:
19912. (a) (1) A person shall not be employed as a gambling
enterprise employee, or serve as an independent agent, except as
provided in paragraph (2), unless he or she is the holder of one of
the following:
(A) A valid work permit issued in accordance with the applicable
ordinance or regulations of the county, city, or city and county in
which his or her duties are performed.
(B) A work permit issued by the commission pursuant to regulations
adopted by the commission for the issuance and renewal of work
permits. A work permit issued by the commission shall be valid for
two years.
(2) An independent agent is not required to hold a work permit if
he or she is not a resident of this state and has registered with the
department in accordance with regulations.
(b) A work permit shall not be issued by any city, county, or city
and county to any person who would be disqualified from holding a
state gambling license for the reasons specified in subdivisions (a)
to (g), inclusive, of Section 19859.
(c) The department may object to the issuance of a work permit by
a city, county, or city and county for any cause deemed reasonable by
the department, and if the department objects to issuance of a work
permit, the work permit shall be denied.
(1) The commission shall adopt regulations specifying particular
grounds for objection to issuance of, or refusal to issue, a work
permit.
(2) The ordinance of any city, county, or city and county relating
to issuance of work permits shall permit the department to object to
the issuance of any permit.
(3) Any person whose application for a work permit has been denied
because of an objection by the department may apply to the
commission for an evidentiary hearing in accordance with regulations.
(d) Application for a work permit for use in any jurisdiction
where a locally issued work permit is not required by the licensing
authority of a city, county, or city and county shall be made to the
commission, department, and may be
granted or denied for any cause deemed reasonable by the commission.
If the commission denies the application, it shall include in its
notice of denial a statement of facts upon which it relied in denying
the application. Upon receipt of an application for a work permit,
the commission may issue a temporary work permit for a period not to
exceed 120 days, pending completion of the background investigation
by the department and official action by the commission with respect
to the work permit application.
(e) An order of the commission denying an application for, or
placing restrictions or conditions on, a work permit, including an
order declining to issue a work permit following review pursuant to
paragraph (3) of subdivision (c), may be reviewed in accordance with
subdivision (e) of Section 19870.
SEC. 4. Section 19951 of the Business
and Professions Code is amended to read:
19951. (a) Every application for a license or approval shall be
accompanied by a nonrefundable fee, the amount of which shall be
adopted by regulation on or before January 1, 2009. The adopted fee
shall not exceed one thousand two hundred dollars ($1,200). Prior to
adoption of the regulation, the nonrefundable application fee shall
be five hundred dollars ($500).
(b) (1) Any fee paid pursuant to this section, including all
licenses issued to key employees and other persons whose names are
endorsed upon the license, shall be assessed against the gambling
license issued to the owner of the gambling establishment. This
paragraph shall not apply to key employee licenses issued on and
after January 1, 2009, or the implementation of regulations
establishing a personal key employee license adopted pursuant to
Section 19854, whichever is sooner.
(2) (A) The fee for initial issuance of a state gambling license
shall be an amount determined by the commission in accordance with
regulations adopted pursuant to this chapter.
(B) The fee for the renewal of a state gambling license shall be
determined pursuant to the schedule in subdivision (c) or the
schedule in subdivision (d), whichever amount is greater.
(C) The holder of a provisional license shall pay an annual fee
pursuant to the schedule in subdivision (c).
(c) The schedule based on the number of tables is as follows:
(1) For a license authorizing one to five tables, inclusive, at
which games are played, three hundred dollars ($300) for each table.
(2) For a license authorizing six to eight tables, inclusive, at
which games are played, five hundred fifty dollars ($550) for each
table.
(3) For a license authorizing 9 to 14 tables, inclusive, at which
games are played, one thousand three hundred dollars ($1,300) for
each table.
(4) For a license authorizing 15 to 25 tables, inclusive, at which
games are played, two thousand seven hundred dollars ($2,700) for
each table.
(5) For a license authorizing 26 to 70 tables, inclusive, at which
games are played, four thousand dollars ($4,000) for each table.
(6) For a license authorizing 71 or more tables at which games are
played, four thousand seven hundred dollars ($4,700) for each table.
(d) Without regard to the number of tables at which games may be
played pursuant to a gambling license, if, at any time of any license
renewal, or when a licensee is required to pay the fee described in
subparagraph (C) of paragraph (2) of subdivision (b) it is determined
that the gross revenues of an owner licensee during the licensee's
previous fiscal year fell within the following ranges, the annual fee
shall be as follows:
(1) For a gross revenue of two hundred thousand dollars ($200,000)
to four hundred ninety-nine thousand nine hundred ninety-nine
dollars ($499,999), inclusive, the amount specified by the department
pursuant to paragraph (2) of subdivision (c).
(2) For a gross revenue of five hundred thousand dollars
($500,000) to one million nine hundred ninety-nine thousand nine
hundred ninety-nine dollars ($1,999,999), inclusive, the amount
specified by the department pursuant to paragraph (3) of subdivision
(c).
(3) For a gross revenue of two million dollars ($2,000,000) to
nine million nine hundred ninety-nine thousand nine hundred
ninety-nine dollars ($9,999,999), inclusive, the amount specified by
the department pursuant to paragraph (4) of subdivision (c).
(4) For a gross revenue of ten million dollars ($10,000,000) to
twenty-nine million nine hundred ninety-nine thousand nine hundred
ninety-nine dollars ($29,999,999), the amount specified by the
department pursuant to paragraph (5) of subdivision (c).
(5) For a gross revenue of thirty million dollars ($30,000,000) or
more, the amount specified by the department pursuant to paragraph
(6) of subdivision (c).
(e) The commission department may
provide for payment of the annual gambling license fee on an annual
or installment basis.
(f) For the purposes of this section, each table at which a game
is played constitutes a single game table.
(g) It is the intent of the Legislature that the fees paid
pursuant to this section are sufficient to enable the department and
the commission to fully carry out their duties and responsibilities
under this chapter.
SEC. 5. Section 1916.12 of the Civil
Code is amended to read:
1916.12. (a) The Legislature finds that the economic environment
of financial institutions has become increasingly volatile as a
result of regulatory revisions enacted by the United States Congress
and federal agencies such as, including,
but not necessarily limited to, the Comptroller of the
Currency, the Federal Home Loan Bank Board, Federal Reserve Board,
and the Depository Institutions Deregulation Committee. The
Legislature further finds that deposit rate ceilings are being phased
out while the cost of and competition for funds have escalated. It
is the purpose of this section to maintain the quality of competition
between state-licensed and federally regulated financial
institutions in the field of mortgage lending, as well as promote the
convenience, advantage and best interests of California residents in
their pursuit of adequate and available housing. In order to remain
competitive and provide the optimum housing environment for the
citizens of California, state institutions require the ability to
respond in a timely manner to changes in mortgage lending parameters
initiated at the federal level. Local regulatory guidelines must
promote continued parity between the state and federal levels in
order to avoid creation of discriminatory burdens upon state
institutions and to protect interests held by California citizens. It
is the intent of the Legislature to eliminate past and prevent
future inequities between state and federal financial institutions
doing business in the State of California by creating a sensitive and
responsive mortgage parity procedure.
(b) The Secretary of the Business, Transportation
Consumer Services, and Housing Agency, or the
secretary's designee as defined by subdivision (c) of Section 1918.5
of the Civil Code, shall have the authority to prescribe rules and
regulations extending to lenders who make loans upon the security of
residential real property any right, power, privilege or duty
relating to mortgage instruments that is equivalent to authority
extended to federally-regulated financial institutions by federal
statute or regulation.
(c) In order to grant equivalent mortgage lending authority to
state financial institutions to that which has been extended to
federal financial institutions, the secretary or the secretary's
designee shall adopt such regulations within 60 days of the effective
date of the statute or regulation extending the comparable right,
power, privilege or duty to federally regulated financial
institutions.
(d) The provisions of Sections 1916.5, 1916.6, 1916.7, 1916.8,
and 1916.9, and Chapter 5 (commencing with
Section 1918) of the Civil Code, and any other provisions
of law relating to the requirements for changes in the rate of
interest on loans, shall not be applicable to loans made pursuant to
the provisions of this section and regulations promulgated
thereunder.
(e) Any regulations adopted pursuant to this section shall expire
on January 1 of the second succeeding year following the end of the
calendar year in which the regulation was promulgated. Subsequent
amendments to these regulations cannot extend this expiration date.
(f) This section shall become operative on December 31, 1983.
SEC. 6. Section 1918.5 of the Civil
Code is amended to read:
1918.5. As used in this chapter:
(a) "Evidence of debt" means a note or negotiable instrument.
(b) "Secretary" means the Secretary of the Business,
Transportation Consumer Services, and
Housing Agency. Housing.
(c) "Secretary's designee" means the director of a department
within the agency that licenses or regulates the institutions,
organizations or persons engaged in a business related to or
affecting compliance with this chapter.
(d) "Security document" means a mortgage contract, deed of trust,
real estate sales contract, or any note or negotiable instrument
issued in connection therewith, when its purpose is to finance the
purchase or construction of real property occupied or intended to be
occupied by the borrower, containing four or fewer residential units
or on which four or fewer residential units are to be constructed.
SEC. 7. Section 5405 of the Civil Code
is amended to read:
5405. (a) To assist with the identification of common interest
developments, each association, whether incorporated or
unincorporated, shall submit to the Secretary of State, on a form and
for a fee not to exceed thirty dollars ($30) that the Secretary of
State shall prescribe, the following information concerning the
association and the development that it manages:
(1) A statement that the association is formed to manage a common
interest development under the Davis-Stirling Common Interest
Development Act.
(2) The name of the association.
(3) The street address of the business or corporate office of the
association, if any.
(4) The street address of the association's onsite office, if
different from the street address of the business or corporate
office, or if there is no onsite office, the street address of the
responsible officer or managing agent of the association.
(5) The name, address, and either the daytime telephone number or
e-mail address of the president of the association, other than the
address, telephone number, or e-mail address of the association's
onsite office or managing agent.
(6) The name, street address, and daytime telephone number of the
association's managing agent, if any.
(7) The county, and, if in an incorporated area, the city in which
the development is physically located. If the boundaries of the
development are physically located in more than one county, each of
the counties in which it is located.
(8) If the development is in an unincorporated area, the city
closest in proximity to the development.
(9) The front street and nearest cross street of the physical
location of the development.
(10) The type of common interest development managed by the
association.
(11) The number of separate interests in the development.
(b) The association shall submit the information required by this
section as follows:
(1) By incorporated associations, within 90 days after the filing
of its original articles of incorporation, and thereafter at the time
the association files its statement of principal business activity
with the Secretary of State pursuant to Section 8210 of the
Corporations Code.
(2) By unincorporated associations, in July 2003, and in that same
month biennially thereafter. Upon changing its status to that of a
corporation, the association shall comply with the filing deadlines
in paragraph (1).
(c) The association shall notify the Secretary of State of any
change in the street address of the association's onsite office or of
the responsible officer or managing agent of the association in the
form and for a fee prescribed by the Secretary of State, within 60
days of the change.
(d) The penalty for an incorporated association's noncompliance
with the initial or biennial filing requirements of this section
shall be suspension of the association's rights, privileges, and
powers as a corporation and monetary penalties, to the same extent
and in the same manner as suspension and monetary penalties imposed
pursuant to Section 8810 of the Corporations Code.
(e) The statement required by this section may be filed,
notwithstanding suspension of the corporate powers, rights, and
privileges under this section or under provisions of the Revenue and
Taxation Code. Upon the filing of a statement under this section by a
corporation that has suffered suspension under this section, the
Secretary of State shall certify that fact to the Franchise Tax Board
and the corporation may thereupon be relieved from suspension,
unless the corporation is held in suspension by the Franchise Tax
Board by reason of Section 23301, 23301.5, or 23775 of the Revenue
and Taxation Code.
(f) The Secretary of State shall make the information submitted
pursuant to paragraph (5) of subdivision (a) available only for
governmental purposes and only to Members of the Legislature and the
Business, Transportation Consumer Services,
and Housing Agency, upon written request. All other information
submitted pursuant to this section shall be subject to public
inspection pursuant to the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code). The information submitted pursuant to this section
shall be made available for governmental or public inspection.
(g) Whenever any form is filed pursuant to this section, it
supersedes any previously filed form.
(h) The Secretary of State may destroy or otherwise dispose of any
form filed pursuant to this section after it has been superseded by
the filing of a new form.
SEC . 8. Section 14024 of the
Corporations Code is amended to read:
14024. The agency manager shall
adopt regulations concerning the implementation of this chapter and
direct lending as emergency regulations in accordance with Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code. The adoption of these regulations is an
emergency and necessary for the immediate preservation of the public
peace, health and safety, or general welfare within the meaning of
subdivision (b) of Section 11346.1 of the Government Code.
Notwithstanding subdivision (e) of Section 11346.1 of the Government
Code, the regulations shall not remain in effect for more than 180
days unless the agency Governor's Office of
Business and Economic Development complies with all provisions
of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
3 of Title 2 of the Government Code, as required by subdivision (e)
of Section 11346.1 of the Government Code. This section also applies
to any direct loan program administered by the agency.
Governor's Office of Business and Economic
Development.
SEC. 9. Section 14025 of the
Corporations Code is amended to read:
14025. The director manager shall do
all of the following:
(a) Administer this part.
(b) In accordance with program resources, stimulate the formation
of corporations and the use of branch offices for the purposes of
making this program accessible to all areas of the state.
(c) Expeditiously approve or disapprove the articles of
incorporation and any subsequent amendments to the articles of
incorporation of a corporation.
(d) Require each corporation to submit an annual written plan of
operation.
(e) Review reports from the Department of Financial Institutions
and inform corporations as to what corrective action is required.
(f) Examine, or cause to be examined, at any reasonable time, all
books, records, and documents of every kind, and the physical
properties of a corporation. The inspection shall include the right
to make copies, extracts, and search records.
SEC. 10. The heading of Article 4 (commencing with
Section 14025) of Chapter 1 of Part 5 of Division 3 of
Title 1 of the Corporations Code is amended to
read:
Article 4. Executive Director Manager
SEC. 11. Section 14026 of the
Corporations Code is amended to read:
14026. The director, following notification to the
secretary, manager may do all of the following:
(a) Contract for services entered into pursuant to this chapter.
(b) Hold public hearings.
(c) Act as liaison between corporations formed under this part,
other state and federal agencies, lenders, and the Legislature.
(d) Process and tabulate on a monthly basis all corporate reports.
(e) Attend board meetings.
(f) Attend and participate at corporation meetings. The
director, manager, or his or her designee, shall
be an ex officio, nonvoting representative on the board of directors
and loan committees of each corporation. The director
manager shall meet with the board of directors
of each corporation at least once each fiscal year,
commencing July 1, 1999. year.
(g) Assist corporations in applying for federal grant
applications, and in obtaining program support from the business
community.
SEC. 12. Section 14027 of the
Corporations Code is amended to read:
14027. The director manager shall
have the accounts of each corporation formed under this part audited
as of the close of business on June 30, of each year. The
director manager shall also have the portfolio
of each corporation audited a minimum of once a year. Material audit
exceptions that are not corrected by the corporation within a
reasonable period of time may result in the suspension of the
corporation pursuant to Section 14028.
SEC. 13. Section 14028 of the
Corporations Code is amended to read:
14028. (a) Upon a finding by the director
manager that irreparable harm may occur if guarantee authority
is not temporarily withdrawn from a corporation, the
director manager may temporarily withdraw
guarantee authority from a corporation. The notice of temporary
withdrawal sent to the corporation shall specify the reasons for the
action. As used in this section, "guarantee authority" means the
authority to make or guarantee any loan that encumbers funds in a
trust fund account or the expansion fund. The director
manager shall make one of the determinations
specified in subdivision (c) within 30 days of the effective date of
the temporary withdrawal unless the corporation and the
director manager mutually agree to an extension.
The corporation shall have the opportunity to submit written
material to the director manager
addressing the items stated in the temporary withdrawal notice. If
the director manager does not make any
determinations within 30 days, the temporary withdrawal shall be
negated. The corporation's yearly contract shall remain in effect
during the period of temporary withdrawal, and the corporation shall
continue to receive reimbursement of necessary operating expenses.
(b) Failure of a corporation to substantially comply with the
following may result in the suspension of a corporation:
(1) Regulations implementing the Small Business Development
Corporation Law.
(2) The plan of operation specified in subdivision (d) of Section
14025.
(3) Fiscal and portfolio requirements, as contained in the fiscal
and portfolio audits specified in Section 14027.
(4) Milestones and scope of work as contained in the annual
contract between the corporation and the agency.
office.
(c) Pursuant to subdivision (a) or (b), the director
manager may do the following:
(1) Terminate the temporary withdrawal.
(2) Terminate the temporary withdrawal subject to the corporation'
s adoption of a specified remedial action plan.
(3) Temporarily withdraw, or continue to withdraw, guarantee
authority until a specified time. This determination by the
director manager requires a finding that the
corporation has failed to comply with the Small Business Development
Corporation Law.
(4) Suspend the corporation.
(5) Suspend the corporation, with suspension stayed until the
corporation provides a remedial action plan to the director,
manager, and the director
manager decides whether to repeal or implement the stayed
suspension.
The determinations contained in paragraphs (4) and (5) require a
finding that irreparable harm will occur unless the corporation is
suspended.
(d) In considering a determination regarding the recommended
suspension and possible remedial action plans, the director
manager shall consider, along with other
criteria as specified in subdivision (b), the corporation's history
and past performance.
(e) Upon suspension of a corporation, the director
manager shall transfer all funds, whether
encumbered or not, in the trust fund account of the suspended
corporation into either the expansion fund or temporarily transfer
the funds to another corporation.
(f) If the director manager decides
to take any action against the corporation pursuant to paragraphs (2)
to (5), inclusive, of subdivision (c), the corporation shall be
notified of the action 10 days before the effective date of the
action. The corporation shall have the right to appeal the
director's manager's decision to the board
within that 10-day period by sending notice to the director
manager and to the chair of the board. Once the
director manager receives notice that
the action is being appealed, the director's
manager's action shall be stayed except for temporary
withdrawal of guarantee authority. Upon receipt of the notice, the
director manager shall schedule a
properly noticed board meeting within 30 days. The board may elect to
take any of the actions listed in subdivision (g). The temporary
withdrawal of corporation guarantee authority shall remain in effect
until the board issues its decision.
(g) Pursuant to subdivision (f), the board may do any of the
following:
(1) Terminate the action taken by the director.
(2) Modify the action taken by the director
manager subject to the adoption by the corporation of a
specified remedial action plan.
(3) Affirm the action taken by the director.
manager.
(h) Following suspension, the corporation may continue its
existence as a nonprofit corporation pursuant to the Nonprofit Public
Benefit Corporation Law (Part 2 (commencing with Section 5110) of
Division 2) but shall no longer be registered with the Secretary of
State as a small business development corporation. A corporation
shall not enjoy any of the benefits of a small business development
corporation following suspension.
(i) The funds in the trust fund account of a corporation under
temporary withdrawal shall be transferred to the expansion fund. Upon
termination of the temporary withdrawal, unless the termination is
caused by suspension, the funds of the corporation that were
transferred to the expansion fund from the trust fund account shall
be returned to the corporation's trust fund account, notwithstanding
Section 14037. While the funds of a corporation's trust fund account
reside in the expansion fund, use of the principal on the funds shall
be governed by the implementing regulations specifying use of funds
in the expansion fund. Interest on the funds moved from a corporation'
s trust fund account upon temporary withdrawal shall be limited to
payment of the corporation's administrative expenses, as contained in
the contract between the corporation and the agency.
office.
SEC. 14. Section 14030.2 of the
Corporations Code is amended to read:
14030.2. (a) The director manager
may establish accounts within the expansion fund for loan guarantees
and surety bond guarantees, including loan loss reserves. Each
account is a legally separate account, and shall not be used to
satisfy loan or surety bond guarantees or other obligations of
another corporation. The director manager
shall recommend whether the expansion fund and trust fund
accounts are to be leveraged, and if so, by how much. Upon the
request of the corporation, the director's
manager's decision may be repealed or modified by a board
resolution.
(b) Annually, not later than January 1 of each year commencing
January 1, 1996, the director manager
shall prepare a report regarding the loss experience for the
expansion fund for loan guarantees and surety bond guarantees for the
preceding fiscal year. At a minimum, the report shall also include
data regarding numbers of surety bond and loan guarantees awarded
through the expansion fund, including ethnicity and gender data of
participating contractors and other entities, and experience of
surety insurer participants in the bond guarantee program. The report
shall include the information described in Section 14076 of the
Corporations Code. The director manager
shall submit that report to the Secretary of Business,
Transportation and Housing for transmission to the Governor
and the Legislature.
SEC. 15. Section 14034 of the
Corporations Code is amended to read:
14034. (a) The director manager at
his or her discretion, with the approval of the Director of Finance,
may request the trustee to invest those funds in the trust fund in
any of the securities described in Section 16430 of the Government
Code. Returns from these investments shall be deposited in the
expansion fund and shall be used to support the programs of this
part.
(b) Any investments made in securities described in Section 16430
of the Government Code shall be governed by the statement of
investment policy prepared by the Treasurer pursuant to subdivision
(a) of Section 16481.2 of the Government Code.
SEC. 16. Section 14036 of the
Corporations Code is amended to read:
14036. The expansion fund and trust fund are created solely for
the purpose of receiving state, federal, or local government money,
and other public or private money to make loans, guarantees, and
restricted investments pursuant to this article. Funds in the
expansion fund may be allocated by the director,
manager, with the approval of the Department of Finance,
to the trust fund accounts.
SEC. 17. Section 14037 of the
Corporations Code is amended to read:
14037. (a) The state shall not be liable or obligated in any way
beyond the state money that is allocated and deposited in the trust
fund account from state money and that is appropriated for these
purposes.
(b) The director manager may
reallocate funds held within a corporation's trust fund account.
(1) The director manager shall
reallocate funds based on which corporation is most effectively using
its guarantee funds. If funds are withdrawn from a less effective
corporation as part of a reallocation, the office shall make that
withdrawal only after giving consideration to that corporation's
fiscal solvency, its ability to honor loan guarantee defaults, and
its ability to maintain a viable presence within the region it
serves. Reallocation of funds shall occur no more frequently than
once per fiscal year. Any decision made by the director
manager pursuant to this subdivision may be
appealed to the board. The board has authority to repeal or modify
any decision to reallocate funds.
(2) The director manager may
authorize a corporation to exceed the leverage ratio specified in
Section 14030, subdivision (b) of Section 14070, and subdivision (a)
of Section 14076 pending the annual reallocation of funds pursuant to
this section. However, no corporation shall be permitted to exceed
an outstanding guarantee liability of more than five times its
portion of funds on deposit in the expansion fund.
(c) This section shall become operative on January 1, 2013.
SEC. 18. Section 14037.5 of the
Corporations Code is amended to read:
14037.5. The Director of Finance, with the approval of the
Governor, may transfer moneys in the Special Fund for Economic
Uncertainties to the Small Business Expansion Fund for use as
authorized by the director, manager, in
an amount necessary to make loan guarantees pursuant to Chapter 1
(commencing with Section 14000) of Part 5 of Division 3 of Title 1 of
the Corporations Code.
SEC. 19. Section 14037.7 of the
Corporations Code is amended to read:
14037.7. Pursuant to subdivision (f) of Section 8684.2 of the
Government Code, within 60 days of the conclusion of the period for
guaranteeing loans under any small business disaster loan guarantee
program conducted for a disaster as authorized by Section 8684.2 of
the Government Code or Section 14075, the agency
manager, through the office, shall provide a report to the
Legislature on loan guarantees approved and rejected by gender,
ethnic group, type of business and location, and each participating
loan institution. The agency office need
only submit one report to comply with this section and subdivision
(f) of Section 8684.2 of the Government Code.
SEC. 20. Section 14038 of the
Corporations Code is amended to read:
14038. (a)
(a) The funds in the expansion fund shall be
paid out to trust fund accounts by the Treasurer on warrants drawn
by the Controller and requisitioned by the director,
manager, pursuant to the purposes of this
chapter. The director manager may
transfer funds allocated from the expansion fund to accounts,
established solely to receive the funds, in lending institutions
designated by the office to act as trustee. The lending institutions
so designated shall be approved by the state for the receipt of state
deposits. Interest earned on the trust fund accounts in lending
institutions may be utilized by the corporations pursuant to the
purposes of this chapter.
(b) Except as specified in subdivision (c), the director
manager shall allocate and transfer money to
trust fund accounts based on performance-based criteria. The criteria
shall include, but not be limited to, the following:
(1) The default record of the corporation.
(2) The number and amount of loans guaranteed by a corporation.
(3) The number and amount of loans made by a corporation if state
funds were used to make those loans.
(4) The number and amount of surety bonds guaranteed by a
corporation.
Any decision made by the director manager
pursuant to this subdivision may be appealed to the board
within 15 days of notice of the proposed action. The board may repeal
or modify any reallocation and transfer decisions made by the
director. manager.
(c) The criteria specified in subdivision (b) shall not apply to a
corporation that has been in existence for five years or less. The
director manager shall develop
regulations specifying the basis for transferring account funds to
those corporations that have been in existence for five years or
less.
SEC. 21. Section 14039 of the
Corporations Code is amended to read:
14039. Pursuant to this section and the regulations, the state
has residual interest in the funds deposited by the state to a trust
fund account and to the return on these funds from investments. On
dissolution or suspension of the corporation, these funds shall be
withdrawn by the director manager from
the trust fund account and returned to the expansion fund or
temporarily transferred to another trust fund account. This provision
shall be contained in the trust instructions to the trustee.
SEC. 22. Section 14040 of the
Corporations Code is amended to read:
14040. Each trust fund account shall consist of a loan guarantee
account, and, upon recommendation by the director,
manager, a bond guarantee account, each of which is a
legally separate account, and the assets of one account shall not be
used to satisfy loan guarantees or other obligations of another
corporation. Not more than one-third of a trust fund account shall be
allocated to a bond guarantee account. No A
corporation shall not use trust fund accounts to
secure a corporate indebtedness. State funds deposited in the trust
fund accounts, with the exception of guarantees established pursuant
to this chapter, shall not be subject to liens or encumbrances of the
corporation or its creditors.
SEC. 23. Section 14041 of the
Corporations Code is amended to read:
14041. (a) Except as provided in subdivisions (c) and (d) of
Section 14070, the trust fund account, shall be used solely to make
loans, guarantee bonds, and guarantee loans, approved by the
corporation, that meet the California Small Business Development
Corporation Law loan criteria. The state shall not be liable or
obligated in any way as a result of the allocation of state money to
a trust fund account beyond the state money that is allocated and
deposited in the fund pursuant to this chapter, and that is not
otherwise withdrawn by the state pursuant to this chapter.
(b) A summary of all loans and bonds to which a state guarantee is
attached shall be submitted to the director
manager upon execution of the loan agreement and periodically
thereafter.
(c) A summary of all loans made by a corporation shall be
submitted to the director manager upon
execution of the loan agreement and periodically thereafter.
SEC. 24. Section 14043 of the
Corporations Code is amended to read:
14043. The financial institution that is to act as trustee of the
trust fund shall be designated after review by the
director. manager. The corporation shall not
receive money on deposit to support guarantees issued under
the provisions of this chapter without the approval of the
director. manager.
SEC. 25. Section 14061 of the
Corporations Code is amended to read:
14061. Every corporation shall provide for and maintain a central
staff to perform all administrative requirements of the corporation
including all those functions required of a corporation by the
director. manager.
SEC. 26. Section 14065 of the
Corporations Code is amended to read:
14065. The corporations shall report to the director,
manager, or his or her designated
representative, all statistical and other reports required by this
part, responses to audit reports, budget requirements, invoices
submitted for payment by the state, and information concerning loans
made or guaranteed.
SEC. 27. Section 14066 o f the
Corporations Code is amended to read:
14066. The corporation shall make a report to the
director, manager, as of the close of business
on June 30, of each year describing the corporation's activities and
any additional information requested by the director,
manager, on or before August 1 of each year.
SEC. 28. Section 14070 of the
Corporations Code , as amended by Section 4 of Chapter 648
of the Statutes of 2012, is amended to read:
14070. (a) The corporate guarantee shall be backed by funds on
deposit in the corporation's trust fund account, or by receivables
due from funds loaned from the corporation's trust fund account to
another fund in state government as directed by the Department of
Finance pursuant to a statute enacted by the Legislature.
(b) Loan guarantees shall be secured by a reserve of at least 20
percent to be determined by the director.
manager.
(c) The expansion fund and trust fund accounts shall be used
exclusively to guarantee obligations and pay the administrative costs
of the corporations. A corporation located in a rural area may
utilize the funds for direct lending to farmers as long as at least
90 percent of the corporate fund farm loans, calculated by dollar
amount, and all expansion fund farm loans are guaranteed by the
United States Department of Agriculture. The amount of funds
available for direct farm lending shall be determined by the
director. manager. In its capacity as a direct
lender, the corporation may sell in the secondary market the
guaranteed portion of each loan so as to raise additional funds for
direct lending. The agency office shall
issue regulations governing these direct loans, including the
maximum amount of these loans.
(d) In furtherance of the purposes of this part, up to one-half of
the trust funds may be used to guarantee loans utilized to establish
a Business and Industrial Development Corporation (BIDCO) under
Division 15 (commencing with Section 33000) of the Financial Code.
(e) To execute the direct loan programs established in this
chapter, the director manager may loan
trust funds to a corporation located in a rural area for the express
purpose of lending those funds to an identified borrower. The loan
authorized by the director manager to
the corporation shall be on terms similar to the loan between the
corporation and the borrower. The amount of the loan may be in excess
of the amount of a loan to any individual farm borrower, but actual
disbursements pursuant to the agency office
loan agreement shall be required to be supported by a loan
agreement between the farm borrower and the corporation in an amount
at least equal to the requested disbursement. The loan between the
agency office and the corporation shall
be evidenced by a credit agreement. In the event that any loan
between the corporation and borrower is not guaranteed by a
governmental agency, the portion of the credit agreement attributable
to that loan shall be secured by assignment of any note, executed in
favor of the corporation by the borrower to the agency.
office. The terms and conditions of the credit
agreement shall be similar to the loan agreement between the
corporation and the borrower, which shall be collateralized by the
note between the corporation and the borrower. In the absence of
fraud on the part of the corporation, the liability of the
corporation to repay the loan to the agency
office is limited to the repayment received by the corporation
from the borrower except in a case where the United States Department
of Agriculture requires exposure by the corporation in rule or
regulation. The corporation may use trust funds for loan repayment to
the agency office if the corporation
has exhausted a loan loss reserve created for this purpose. Interest
and principal received by the agency office
from the corporation shall be deposited into the same account
from which the funds were originally borrowed.
(f) Upon the approval of the director,
manager, a corporation shall be authorized to borrow trust
funds from the agency office for the
purpose of relending those funds to small businesses. A corporation
shall demonstrate to the director manager
that it has the capacity to administer a direct loan program,
and has procedures in place to limit the default rate for loans to
startup businesses. Not more than 25 percent of any trust fund
account shall be used for the direct lending established pursuant to
this subdivision. A loan to a corporation shall not exceed the amount
of funds likely to be lent to small businesses within three months
following the loan to the corporation. The maximum loan amount to a
small business is fifty thousand dollars ($50,000). In the absence of
fraud on the part of the corporation, the repayment obligation
pursuant to the loan to the corporation shall be limited to the
amount of funds received by the corporation for the loan to the small
business and any other funds received from the agency
office that are not disbursed. The corporation
shall be authorized to charge a fee to the small business borrower,
in an amount determined by the director
manager pursuant to regulation. The program provided for in
this subdivision shall be available in all geographic areas of the
state.
(g) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 29. Section 14070 of the
Corporations Code , as amended by Section 5 of Chapter 648
of the Statutes of 2012, is amended to read:
14070. (a) The corporate guarantee shall be backed by funds on
deposit in the corporation's trust fund account, or by receivables
due from funds loaned from the corporation's trust fund account to
another fund in state government as directed by the Department of
Finance pursuant to a statute enacted by the Legislature.
(b) Loan guarantees shall be secured by a reserve of at least 25
percent to be determined by the director,
manager, unless the director manager
authorizes a higher leverage ratio for an individual
corporation pursuant to subdivision (b) of Section 14037.
(c) The expansion fund and trust fund accounts shall be used
exclusively to guarantee obligations and pay the administrative costs
of the corporations. A corporation located in a rural area may
utilize the funds for direct lending to farmers as long as at least
90 percent of the corporate fund farm loans, calculated by dollar
amount, and all expansion fund farm loans are guaranteed by the
United States Department of Agriculture. The amount of funds
available for direct farm lending shall be determined by the
director. manager. In its capacity as a direct
lender, the corporation may sell in the secondary market the
guaranteed portion of each loan so as to raise additional funds for
direct lending. The agency office shall
issue regulations governing these direct loans, including the
maximum amount of these loans.
(d) In furtherance of the purposes of this part, up to one-half of
the trust funds may be used to guarantee loans utilized to establish
a Business and Industrial Development Corporation (BIDCO) under
Division 15 (commencing with Section 33000) of the Financial Code.
(e) To execute the direct loan programs established in this
chapter, the director manager may loan
trust funds to a corporation located in a rural area for the express
purpose of lending those funds to an identified borrower. The loan
authorized by the director manager to
the corporation shall be on terms similar to the loan between the
corporation and the borrower. The amount of the loan may be in excess
of the amount of a loan to any individual farm borrower, but actual
disbursements pursuant to the agency office
loan agreement shall be required to be supported by a loan
agreement between the farm borrower and the corporation in an amount
at least equal to the requested disbursement. The loan between the
agency office and the corporation shall
be evidenced by a credit agreement. In the event that any loan
between the corporation and borrower is not guaranteed by a
governmental agency, the portion of the credit agreement attributable
to that loan shall be secured by assignment of any note, executed in
favor of the corporation by the borrower to the agency.
office. The terms and conditions of the credit
agreement shall be similar to the loan agreement between the
corporation and the borrower, which shall be collateralized by the
note between the corporation and the borrower. In the absence of
fraud on the part of the corporation, the liability of the
corporation to repay the loan to the agency
office is limited to the repayment received by the corporation
from the borrower except in a case where the United States Department
of Agriculture requires exposure by the corporation in rule or
regulation. The corporation may use trust funds for loan repayment to
the agency office if the corporation
has exhausted a loan loss reserve created for this purpose. Interest
and principal received by the agency office
from the corporation shall be deposited into the same account
from which the funds were originally borrowed.
(f) Upon the approval of the director,
manager, a corporation shall be authorized to borrow trust
funds from the agency office for the
purpose of relending those funds to small businesses. A corporation
shall demonstrate to the director manager
that it has the capacity to administer a direct loan program,
and has procedures in place to limit the default rate for loans to
startup businesses. Not more than 25 percent of any trust fund
account shall be used for the direct lending established pursuant to
this subdivision. A loan to a corporation shall not exceed the amount
of funds likely to be lent to small businesses within three months
following the loan to the corporation. The maximum loan amount to a
small business is fifty thousand dollars ($50,000). In the absence of
fraud on the part of the corporation, the repayment obligation
pursuant to the loan to the corporation shall be limited to the
amount of funds received by the corporation for the loan to the small
business and any other funds received from the agency that are not
disbursed. The corporation shall be authorized to charge a fee to the
small business borrower, in an amount determined by the
director manager pursuant to regulation. The
program provided for in this subdivision shall be available in all
geographic areas of the state.
(g) This section shall become operative on January 1, 2018.
SEC. 30. Section 14071 of the
Corporations Code is amended to read:
14071. In furtherance of the purposes set forth in Section 14002,
a corporation may do any one or more of the following activities,
but only to the extent that the activities are authorized pursuant to
the contract between the agency office
and the corporation: guarantee, endorse, or act as surety
on the bonds, notes, contracts, or other obligations of, or assist
financially, any person, firm, corporation, or association, and may
establish and regulate the terms and conditions with respect to any
such loans or financial assistance and the charges for interest and
service connected therewith, except that the corporation shall not
make or guarantee any loan unless and until it determines:
(a) There is no probability that the loan or other financial
assistance would be granted by a financial company under reasonable
terms or conditions, and the borrower has demonstrated a reasonable
prospect of repayment of the loan.
(b) The loan proceeds shall be used exclusively in this state.
(c) The loan qualifies as a small business loan or an employment
incentive loan.
(d) That the borrower has a minimum equity interest in the
business as determined by the director.
manager.
(e) As a result
of the loan, the jobs generated or retained demonstrate reasonable
conformance to the regulations specifying employment criteria.
SEC. 31. Section 14071.5 of the
Corporations Code is amended to read:
14071.5. In addition to the authority granted by Section 14071,
upon approval of the director, manager,
a corporation may act as guarantor on a surety bond for any small
business contractor, including, but not limited to, women, minority,
and disabled veteran contractors.
The provisions of this section allowing a corporation to act as a
guarantor on surety bonds may be funded through appropriate federal
funding sources. Federal funds shall be deposited in the Federal
Trust Fund in the State Treasury in accordance with Section 16360 of
the Government Code, for transfer to the Small Business Expansion
Fund, as created by Section 14030 of the Corporations Code.
SEC. 32. Section 14072 of the
Corporations Code is amended to read:
14072. A corporation may charge the borrower or financial
institution a loan fee on all loans made or guaranteed by the
corporation to defray the operating expenses of the corporation. The
amount of the fee shall be determined by the director.
manager.
SEC. 33. Section 14074 of the
Corporations Code is amended to read:
14074. The agency office shall
enter into an agreement with the California Energy Extension Service
of the Office of Planning and Research to assist small business
owners in reducing their energy costs through low interest loans and
by providing assistance and information.
SEC. 34. Section 14075 of the
Corporations Code is amended to read:
14075. (a) A corporation may, in an area affected by a state of
emergency within the state and declared a disaster by the President
of the United States, or by the Administrator of the United States
Small Business Administration, or by the United States Secretary of
Agriculture or declared to be in a state of emergency by the
Governor of California, Governor, provide loan
guarantees from funds allocated in Section 14037.5 to small
businesses, small farms, nurseries, and agriculture-related
enterprises that have suffered actual physical damage or significant
economic injury as a result of the disaster.
(b) The agency office may adopt
regulations to implement the loan guarantee program authorized by
this section. The agency office may
adopt these regulations as emergency regulations in accordance with
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of the Government Code, and for purposes of that chapter, including
Section 11349.6 of the Government Code, the adoption of the
regulations shall be considered by the Office of Administrative Law
to be necessary for the immediate preservation of the public peace,
health and safety, and general welfare. Notwithstanding subdivision
(e) of Section 11346.1 of the Government Code, the regulations shall
be repealed within 180 days after their effective date unless the
agency complies with Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of the Government Code, as provided in
subdivision (e) of Section 11346.1 of the Government Code.
(c) Allocations pursuant to subdivision (a) shall be deemed to be
for extraordinary emergency or disaster response operations costs
incurred by the agency. office.
SEC. 35. Section 14076 of the
Corporations Code , as amended by Section 6 of Chapter 648
of the Statutes of 2012, is amended to read:
14076. (a) It is the intent of the Legislature that the
corporations make maximal use of their statutory authority to
guarantee loans and surety bonds, including the authority to secure
loans with a minimum loan loss reserve of only 20 percent, so that
the financing needs of small business may be met as fully as possible
within the limits of corporations' loan loss reserves. The
agency office shall report annually to the
Legislature on the financial status of the corporations and their
portfolio of loans and surety bonds guaranteed.
(b) Any corporation that serves an area declared to be in a state
of emergency by the Governor or a disaster area by the President of
the United States, the Administrator of the United States Small
Business Administration, or the United States Secretary of
Agriculture shall increase the portfolio of loan guarantees where the
dollar amount of the loan is less than one hundred thousand dollars
($100,000), so that at least 15 percent of the dollar value of loans
guaranteed by the corporation is for those loans. The corporation
shall comply with this requirement within one year of the date the
emergency or disaster is declared. Upon application of a corporation,
the director manager may waive or
modify the rule for the corporation if the corporation demonstrates
that it made a good faith effort to comply and failed to locate
lending institutions in the region that the corporation serves that
are willing to make guaranteed loans in that amount.
(c) This section shall remain in effect only until January 1,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date.
SEC. 36. Section 14076 of the
Corporations Code , as amended by Section 7 of Chapter 648
of the Statutes of 2012, is amended to read:
14076. (a) It is the intent of the Legislature that the
corporations make maximal use of their statutory authority to
guarantee loans and surety bonds, including the authority to secure
loans with a minimum loan loss reserve of only 25 percent, unless the
agency authorizes a higher leverage ratio for an individual
corporation pursuant to subdivision (b) of Section 14037, so that the
financing needs of small business may be met as fully as possible
within the limits of corporations' loan loss reserves. The
agency office shall report annually to the
Legislature on the financial status of the corporations and their
portfolio of loans and surety bonds guaranteed.
(b) Any corporation that serves an area declared to be in a state
of emergency by the Governor or a disaster area by the President of
the United States, the Administrator of the United States Small
Business Administration, or the United States Secretary of
Agriculture shall increase the portfolio of loan guarantees where the
dollar amount of the loan is less than one hundred thousand dollars
($100,000), so that at least 15 percent of the dollar value of loans
guaranteed by the corporation is for those loans. The corporation
shall comply with this requirement within one year of the date the
emergency or disaster is declared. Upon application of a corporation,
the director manager may waive or
modify the rule for the corporation if the corporation demonstrates
that it made a good faith effort to comply and failed to locate
lending institutions in the region that the corporation serves that
are willing to make guaranteed loans in that amount.
(c) This section shall become operative on January 1, 2018.
SEC. 37. Section 14085 of the
Corporations Code is amended to read:
14085. It shall be unlawful for the director
manager or any person who is an officer, director, or
employee of a corporation, or who is a member of a loan committee, or
who is an employee of the agency office
to:
(a) Ask for, consent, or agree to receive, any commission,
emolument, gratuity, money, property, or thing of value for his or
her own use, benefit, or personal advantage, for procuring or
endeavoring to procure for any person, partnership, joint venture,
association, or corporation, any loan, guarantee, financial, or other
assistance from any corporation.
(b) Borrow money, property, or to benefit knowingly, directly or
indirectly, from the use of the money, credit, or property of any
corporation.
(c) Make, maintain, or attempt to make or maintain, a deposit of
the funds of a corporation with any other corporation or association
on condition, or with the understanding, expressed or implied, that
the corporation or association receiving the deposit shall pay any
money or make a loan or advance, directly or indirectly, to any
person, partnership, joint venture, association, or corporation,
other than to a corporation formed under this part.
SEC. 38. Section 14086 of the
Corporations Code is amended to read:
14086. It shall be unlawful for the director
manager or any person who is an officer or director of a
corporation, or who is an employee of the agency,
office, to purchase or receive, or to be otherwise
interested in the purchase or receipt, directly or indirectly, of any
asset of a corporation, without paying to the corporation the fair
market value of the asset at the time of the transaction.
SEC. 39. Section 29503 of the
Corporations Code is amended to read:
29503. "Commissioner" means the Commissioner of
Corporations. Business Oversight.
SEC. 40. Section 31004 of the
Corporations Code is amended to read:
31004. "Commissioner" means the Commissioner of
Corporations. Business Oversight.
SEC. 41. Section 300 of the Financial
Code , as amended by Section 5 of Chapter 147 of the
Statutes of 2012, is amended to read:
300. (a) In this section:
(1) "Business and industrial development corporation" means a
corporation licensed under Division 15 (commencing with Section
31000).
(2) "Payment instrument" has the same meaning as set forth in
Section 33059.
(3) "Traveler's check" has the same meaning as set forth in
Section 1803.
(b) There is in the state government, in the Business, Consumer
Services, and Housing Agency, a Department of Business Oversight,
which has charge of the execution of, among other laws, the laws of
this state relating to any of the following: (1) banks or trust
companies or the banking or trust business; (2) savings associations
or the savings association business; (3) credit unions or the credit
union business; (4) persons who engage in the business of receiving
money for transmission to foreign nations or such business; (5)
issuers of traveler's checks or the traveler's check business; (6)
issuers of payment instruments or the payment instrument business;
(7) business and industrial development corporations or the business
and industrial development corporation business, or
business; (8) insurance premium finance agencies
or the insurance premium finance business.
business; (9) persons offering or making any contract constituting
bucketing; (10) persons offering or selling off-exchange commodities;
(11) deferred deposit originators; (12) finance lenders and brokers;
(13) residential mortgage lenders and servicers; (14) capital access
companies; (15) check sellers, bill payers, and proraters; (16)
securities issuers, broker-dealers, agents, investment advisers, and
investment adviser representatives; (17) mortgage loan originators
employed or supervised by finance lenders or residential mortgage
lenders; (18) escrow agents; (19) franchisors, or (20) persons
holding securities as custodians on behalf of securities owners.
SEC. 42. Section 301 of the Financial
Code is amended to read:
301. (a) This chapter is applicable to this
division, Division 1.1 (commencing with Section 1000), Division 1.2
(commencing with Section 2000), Division 1.6 (commencing with Section
4800), Division 5 (commencing with Section 14000), Division 7
(commencing with Section 18000), and Division 15 (commencing with
Section 31000).
(b) Except as provided in subdivision (c), this article, and
Articles 2 (commencing with Section 320) and 3 (commencing with
Section 350) are applicable to the administration of laws by the
Division of Corporations.
(c) Sections 329, 330, 332, 335, 336, 357, 378, 379, and 381 are
not applicable to the Division of Corporations.
SEC. 43. Section 320 of the Financial
Code is amended to read:
320. (a) The chief officer of the
Department of Financial Institutions Business
Oversight is the Commissioner of Financial
Institutions. Business Oversight. The
Commissioner of Financial Institutions
Business Oversight is the head of the department with the
authority and responsibility over all officers, employees, and
activities in the department and, except as otherwise provided
in this code, code and the Corporations Code,
is subject to the provisions of the Government Code relating
to department heads, but need not reside in Sacramento.
heads.
(b) The Commissioner of Business Oversight shall employ legal
counsel to act as the attorney for the commissioner in actions or
proceedings brought by or against the commissioner under or pursuant
to any law under the commissioner's jurisdiction, or in which the
commissioner joins or intervenes as to a matter within the
commissioner's jurisdiction, as a friend of the court or otherwise,
and stenographic reporters to take and transcribe the testimony in
any formal hearing or investigation before the commissioner or before
a person authorized by the commissioner.
(c) Sections 11040, 11042, and 11043 of the Government Code do not
apply to the Commissioner of Business Oversight.
SEC. 44. Section 326 of the Financial
Code is amended to read:
326. The commissioner Commissioner of
Business Oversight is responsible for the performance of all
duties, the exercise of all powers and jurisdiction, and the
assumption and discharge of all responsibilities vested by law in the
department. department and the divisions
thereunder. The commissioner has and may exercise all the
powers necessary or convenient for the administration and enforcement
of, among other laws, the laws described in Section 300. The
commissioner may issue such rules and regulations
consistent with law as he or she may deem necessary or advisable in
executing the powers, duties, and responsibilities of the department.
SEC. 45. Section 350 of the Financial
Code is amended to read:
350. The commissioner shall appoint a chief
deputy who holds shall be appointed by the
Governor and hold office at the pleasure of the
commissioner. Governor. The annual salary of the
chief deputy shall be fixed by the commissioner with the
approval of the Director of Finance. The chief deputy shall have the
same qualifications as the commissioner. The commissioner shall also
appoint two deputies, one to serve in the City and County of San
Francisco and one to serve in the City of Los Angeles.
Governor.
SEC. 46. Section 351 of the Financial
Code is repealed.
351. The Chief Officer of the Division of Credit Unions is the
Deputy Commissioner of Financial Institutions for the Division of
Credit Unions. The Deputy Commissioner of Financial Institutions for
the Division of Credit Unions shall administer the laws of this state
relating to credit unions or the credit union business under the
direction of the commissioner. The Deputy Commissioner of Financial
Institutions for the Division of Credit Unions shall be appointed by
the Governor and shall hold office at the pleasure of the Governor.
The Deputy Commissioner of Financial Institutions shall receive an
annual salary as fixed by the Governor.
SEC. 47. Section 351 is added to the
Financial Code , to read:
351. (a) The chief officer of the Division of Corporations is the
Senior Deputy Commissioner of Business Oversight for the Division of
Corporations. The Senior Deputy Commissioner of Business Oversight
for the Division of Corporations shall, under the direction of the
commissioner, administer the laws of this state that were, prior to
July 1, 2013, under the charge of the Department of Corporations. The
Senior Deputy Commissioner of Business Oversight for the Division of
Corporations shall be appointed by the Governor and shall hold
office at the pleasure of the Governor. The Senior Deputy
Commissioner of Business Oversight for the Division of Corporations
shall receive an annual salary as fixed by the Governor.
(b) The chief officer of the Division of Financial Institutions is
the Senior Deputy Commissioner of Business Oversight for the
Division of Financial Institutions. The Senior Deputy Commissioner of
Business Oversight for the Division of Financial Institutions shall,
under the direction of the commissioner, administer the laws of this
state that were, prior to July 1, 2013, under the charge of the
Department of Financial Institutions. The Senior Deputy Commissioner
of Business Oversight for the Division of Financial Institutions
shall be appointed by the Governor and shall hold office at the
pleasure of the Governor. The Senior Deputy Commissioner of Business
Oversight for the Division of Financial Institutions shall receive an
annual salary as fixed by the Governor.
SEC. 48. Section 353 of the Financial
Code is amended to read:
353. Before entering upon the duties of his office each deputy
and examiner shall take and subscribe to the constitutional oath of
office and file the same with the Secretary of State.
office.
SEC. 49 . Section 371 of the
Financial Code is repealed.
371. There is in the Department of Financial Institutions, the
Division of Credit Unions. The Division of Credit Unions has charge
of the execution of the laws of this state relating to credit unions
and to the credit union business.
SEC. 50. Section 371 is added to the
Financial Code , to read:
371. (a) There is in the Department of Business Oversight, the
Division of Corporations, under the direction of the Senior Deputy
Commissioner of Business Oversight for the Division of Corporations.
The senior deputy commissioner has charge of the execution of the
laws of the state that were, prior to July 1, 2013, under the charge
of the Department of Corporations.
(b) There is in the Department of Business Oversight, the Senior
Deputy Commissioner of the Department of Business Oversight for the
Division of Financial Institutions. Under the direction of the senior
deputy commissioner, the Division of Financial Institutions has
charge of the execution of the laws of the state that were, prior to
July 1, 2013, under the charge of the Department of Financial
Institutions.
SEC. 51. Section 4805.055 of the
Financial Code is amended to read:
4805.055. "Commissioner" means the Senior Deputy
Commissioner of Business Oversight for the Division of
Financial Institutions.
SEC. 52. Section 5104 of the Financial
Code is amended to read:
5104. "Commissioner" means the Senior Deputy
Commissioner of Business Oversight for the Division of
Financial Institutions.
SEC. 53. Section 12003 of the Financial
Code is amended to read:
12003. "Commissioner" means the Senior Deputy
Commissioner of Corporations of Business
Oversight for the State Division
of California, Corporations, or any
deputy, investigator, auditor, or any other person employed by him.
SEC. 54. Section 14003 of the Financial
Code is amended to read:
14003. "Commissioner" means the Senior Deputy
Commissioner of Financial Institutions of
Business Oversight for the State
Division of California. Corporations.
SEC. 55. Section 14200.1 of the
Financial Code is amended to read:
14200.1. There is in the Division of Financial Institutions
of the Department of Financial Institutions,
Business Oversight the Division
Office of Credit Unions. The Division
Office of Credit Unions has charge of the execution of the laws
of this state relating to credit unions or to the credit union
business.
SEC. 56. Section 14200.2 of the
Financial Code is amended to read:
14200.2. The Chief Officer chief officer
of the Division Office of Credit
Unions is the Deputy Commissioner of Financial Institutions
for the Division Office of
Credit Unions. The Deputy Commissioner of Financial
Institutions the Office of Credit Unions, under the
direction and on behalf of the Senior Deputy Commissioner for
Business Oversight for the Division of Credit
Unions Financial Institutions, shall administer
the laws of this state relating to credit unions or the credit union
business under the direction of and on behalf of the
commissioner. business. The Deputy Commissioner
of Financial Institutions for the
Division Office of Credit Unions shall be
appointed by the Governor and shall hold office at the pleasure of
the Governor. The Deputy Commissioner of Financial
Institutions the Office of Credit Unions shall
receive an annual salary as fixed by the Governor.
SEC. 57. Section 17002 of the Financial
Code is amended to read:
17002. "Commissioner" means the Commissioner of
Corporations. Business Oversight.
SEC. 58. Section 18002 of the
Financial Code is amended to read:
18002. "Commissioner" means the Commissioner of
Financial Institutions of the State of California.
Business Oversight.
SEC. 59. Section 22005 of the Financial
Code is amended to read:
22005. "Commissioner" means the Commissioner of
Corporations. Business Oversight.
SEC. 60. Section 30002 of the Financial
Code is amended to read:
30002. "Commissioner" means the Commissioner of
Corporations. Business Oversight.
SEC. 61. Section 31055 of the Financial
Code is amended to read:
31055. "Commissioner" means the Commissioner of
Financial Institutions Business Oversight, or
any other person to whom the
Commissioner of Financial Institutions commissioner
delegates the authority to act for him or her in the particular
matter.
SEC. 62. Section 50003 of the Financial
Code is amended to read:
50003. (a) "Annual audit" means a certified audit of the licensee'
s books, records, and systems of internal control performed by an
independent certified public accountant in accordance with generally
accepted accounting principles and generally accepted auditing
standards.
(b) "Borrower" means the loan applicant.
(c) "Buy" includes exchange, offer to buy, or solicitation to buy.
(d) "Commissioner" means the Commissioner of
Corporations. Business Oversight.
(e) "Control" means the possession, directly or indirectly, of the
power to direct, or cause the direction of, the management and
policies of a licensee under this division, whether through voting or
through the ownership of voting power of an entity that possesses
voting power of the licensee, or otherwise. Control is presumed to
exist if a person, directly or indirectly, owns, controls, or holds
10 percent or more of the voting power of a licensee or of an entity
that owns, controls, or holds, with power to vote, 10 percent or more
of the voting power of a licensee. No person shall be deemed to
control a licensee solely by reason of his or her status as an
officer or director of the licensee.
(f) "Depository institution" has the same meaning as in Section 3
of the Federal Deposit Insurance Act, and includes any credit union.
(g) "Engage in the business" means the dissemination to the
public, or any part of the public, by means of written, printed, or
electronic communication or any communication by means of recorded
telephone messages or spoken on radio, television, or similar
communications media, of any information relating to the making of
residential mortgage loans, the servicing of residential mortgage
loans, or both. "Engage in the business" also means, without
limitation, making residential mortgage loans or servicing
residential mortgage loans, or both.
(h) "Federal banking agencies" means the Board of Governors of the
Federal Reserve System, the Comptroller of the Currency, the
Director of the Office of Thrift Supervision, the
National Credit Union Administration, and the Federal Deposit
Insurance Corporation.
(i) "In this state" includes any activity of a person relating to
making or servicing a residential mortgage loan that originates from
this state and is directed to persons outside this state, or that
originates from outside this state and is directed to persons inside
this state, or that originates inside this state and is directed to
persons inside this state, or that leads to the formation of a
contract and the offer or acceptance thereof is directed to a person
in this state (whether from inside or outside this state and whether
the offer was made inside or outside the state).
(j) "Institutional investor" means the following:
(1) The United States or any state, district, territory, or
commonwealth thereof, or any city, county, city and county, public
district, public authority, public corporation, public entity, or
political subdivision of a state, district, territory, or
commonwealth of the United States, or any agency or other
instrumentality of any one or more of the foregoing, including, by
way of example, the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation.
(2) Any bank, trust company, savings bank or savings and loan
association, credit union, industrial bank or industrial loan
company, personal property broker, consumer finance lender,
commercial finance lender, or insurance company, or subsidiary
or affiliate of one of the
preceding entities, doing business under the authority of or in
accordance with a license, certificate, or charter issued by the
United States or any state, district, territory, or commonwealth of
the United States.
(3) Trustees of pension, profit-sharing, or welfare funds, if the
pension, profit-sharing, or welfare fund has a net worth of not less
than fifteen million dollars ($15,000,000), except pension,
profit-sharing, or welfare funds of a licensee or its affiliate,
self-employed individual retirement plans, or individual retirement
accounts.
(4) A corporation or other entity with outstanding securities
registered under Section 12 of the federal Securities Exchange Act of
1934 or a wholly owned subsidiary of that corporation or entity,
provided that the purchaser represents either of the following:
(A) That it is purchasing for its own account for investment and
not with a view to, or for sale in connection with, any distribution
of a promissory note.
(B) That it is purchasing for resale pursuant to an exemption
under Rule 144A (17 C.F.R. 230.144A) of the Securities and Exchange
Commission.
(5) An investment company registered under the Investment Company
Act of 1940; or a wholly owned and controlled subsidiary of that
company, provided that the purchaser makes either of the
representations provided in paragraph (4).
(6) A residential mortgage lender or servicer licensed to make
residential mortgage loans under this law or an affiliate or
subsidiary of that person.
(7) Any person who is licensed as a securities broker or
securities dealer under any law of this state, or of the United
States, or any employee, officer, or agent of that person, if that
person is acting within the scope of authority granted by that
license or an affiliate or subsidiary controlled by that broker or
dealer, in connection with a transaction involving the offer, sale,
purchase, or exchange of one or more promissory notes secured
directly or indirectly by liens on real property or a security
representing an ownership interest in a pool of promissory notes
secured directly or indirectly by liens on real property, and the
offer and sale of those securities is qualified under the California
Corporate Securities Law of 1968 or registered under federal
securities laws, or exempt from qualification or registration.
(8) A licensed real estate broker selling the loan to an
institutional investor specified in paragraphs (1) to (7), inclusive,
or paragraph (9) or (10).
(9) A business development company as defined in Section 2(a)(48)
of the Investment Company Act of 1940 or a Small Business Investment
Company licensed by the United States Small Business Administration
under Section 301(c) or (d) of the Small Business Investment Act of
1958.
(10) A syndication or other combination of any of the foregoing
entities that is organized to purchase a promissory note.
(11) A trust or other business entity established by an
institutional investor for the purpose of issuing or facilitating the
issuance of securities representing undivided interests in, or
rights to receive payments from or to receive payments primarily
from, a pool of financial assets held by the trust or business
entity, provided that all of the following apply:
(A) The business entity is not a sole proprietorship.
(B) The pool of assets consists of one or more of the following:
(i) Interest-bearing obligations.
(ii) Other contractual obligations representing the right to
receive payments from the assets.
(iii) Surety bonds, insurance policies, letters of credit, or
other instruments providing credit enhancement for the assets.
(C) The securities will be either one of the following:
(i) Rated as "investment grade" by Standard and Poor's Corporation
or Moody's Investors Service, Inc. "Investment grade" means that the
securities will be rated by Standard and Poor's Corporation as AAA,
AA, A, or BBB or by Moody's Investors Service, Inc. as Aaa, Aa, A, or
Baa, including any of those ratings with "+" or "--" designation or
other variations that occur within those ratings.
(ii) Sold to an institutional investor.
(D) The offer and sale of the securities is qualified under the
California Corporate Securities Law of 1968 or registered under
federal securities laws, or exempt from qualification or
registration.
(k) "Institutional lender" means the following:
(1) The United States or any state, district, territory, or
commonwealth thereof, or any city, county, city and county, public
district, public authority, public corporation, public entity, or
political subdivision of a state, district, territory, or
commonwealth of the United States, or any agency or other
instrumentality of any one or more of the foregoing, including, by
way of example, the Federal National Mortgage Association and the
Federal Home Loan Mortgage Corporation.
(2) Any bank, trust company, savings bank or savings and loan
association, credit union, industrial loan company, or insurance
company, or service or investment company that is wholly owned and
controlled by one of the preceding entities, doing business under the
authority of and in accordance with a license, certificate, or
charter issued by the United States or any state, district,
territory, or commonwealth of the United States.
(3) Any corporation with outstanding securities registered under
Section 12 of the Securities Exchange Act of 1934 or any wholly owned
subsidiary of that corporation.
(4) A residential mortgage lender or servicer licensed to make
residential mortgage loans under this law.
( l ) "Law" means the California Residential Mortgage
Lending Act.
(m) "Lender" means a person that (1) is an approved lender for the
Federal Housing Administration, Veterans Administration, Farmers
Home Administration, Government National Mortgage Association,
Federal National Mortgage Association, or Federal Home Loan Mortgage
Corporation, (2) directly makes residential mortgage loans, and (3)
makes the credit decision in the loan transactions.
(n) "Licensee" means, depending on the context, a person licensed
under Chapter 2 (commencing with Section 50120), Chapter 3
(commencing with Section 50130), or Chapter 3.5 (commencing with
Section 50140).
(o) "Makes or making residential mortgage loans" or "mortgage
lending" means processing, underwriting, or as a lender using or
advancing one's own funds, or making a commitment to advance one's
own funds, to a loan applicant for a residential mortgage loan.
(p) "Mortgage loan," "residential mortgage loan," or "home
mortgage loan" means a federally related mortgage loan as defined in
Section 3500.2 of Title 24 of the Code of Federal Regulations, or a
loan made to finance construction of a one-to-four family dwelling.
(q) "Mortgage servicer" or "residential mortgage loan servicer"
means a person that (1) is an approved servicer for the Federal
Housing Administration, Veterans Administration, Farmers Home
Administration, Government National Mortgage Association, Federal
National Mortgage Association, or Federal Home Loan Mortgage
Corporation, and (2) directly services or offers to service mortgage
loans.
(r) "Nationwide Mortgage Licensing System and Registry" means a
mortgage licensing system developed and maintained by the Conference
of State Bank Supervisors and the American Association of Residential
Mortgage Regulators for the licensing and registration of licensed
mortgage loan originators.
(s) "Net worth" has the meaning set forth in Section 50201.
(t) "Own funds" means (1) cash, corporate capital, or warehouse
credit lines at commercial banks, savings banks, savings and loan
associations, industrial loan companies, or other sources that are
liability items on a lender's financial statements, whether secured
or unsecured, or (2) a lender's affiliate's cash, corporate capital,
or warehouse credit lines at commercial banks or other sources that
are liability items on the affiliate's financial statements, whether
secured or unsecured. "Own funds" does not include funds provided by
a third party to fund a loan on condition that the third party will
subsequently purchase or accept an assignment of that loan.
(u) "Person" means a natural person, a sole proprietorship, a
corporation, a partnership, a limited liability company, an
association, a trust, a joint venture, an unincorporated
organization, a joint stock company, a government or a political
subdivision of a government, and any other entity.
(v) "Residential real property" or "residential real estate" means
real property located in this state that is improved by a
one-to-four family dwelling.
(w) "SAFE Act" means the federal Secure and Fair Enforcement for
Mortgage Licensing Act of 2008 (Public Law 110-289).
(x) "Service" or "servicing" means receiving more than three
installment payments of principal, interest, or other amounts placed
in escrow, pursuant to the terms of a mortgage loan and performing
services by a licensee relating to that receipt or the enforcement of
its receipt, on behalf of the holder of the note evidencing that
loan.
(y) "Sell" includes exchange, offer to sell, or solicitation to
sell.
(z) "Unique identifier" means a number or other identifier
assigned by protocols established by the Nationwide Mortgage
Licensing System and Registry.
(aa) For purposes of Sections 50142, 50143, and 50145,
"nontraditional mortgage product" means any mortgage product other
than a 30-year fixed rate mortgage.
(ab) For purposes of Section 50141, "expungement" means the
subsequent order under the provisions of Section 1203.4 of the Penal
Code allowing such individual to withdraw his or her plea of guilty
and to enter a plea of not guilty, or setting aside the verdict of
guilty or dismissing the accusation, information, or indictment. With
respect to criminal convictions in another state, that state's
definition of expungement will apply.
SEC. 63. Section 8684.2 of the
Government Code is amended to read:
8684.2. (a) It is the intent of the Legislature:
(1) To provide the Governor with appropriate emergency powers in
order to enable utilization of available emergency funding to provide
guarantees for interim loans to be made by lending institutions, in
connection with relief provided for those persons affected by
disasters or a state of emergency in affected areas during periods of
disaster relief assistance, for the purpose of supplying interim
financing to enable small businesses to continue operations pending
receipt of federal disaster assistance.
(2) That the Governor should utilize this authority to prevent
business insolvencies and loss of employment in areas affected by
these disasters.
(b) In addition to the allocations authorized by Section 8683 and
the loan guarantee provisions of Section 14030.1 of the Corporations
Code, the Governor may allocate funds made available for the purposes
of this chapter, in connection with relief provided, in affected
areas during the period of federal disaster relief, to the Small
Business Expansion Fund for use by the Governor's Office
of Small Business, Business and Economic
Development, pursuant to Chapter 1 (commencing with Section
14000) of Part 5 of Division 3 of Title 1 of the Corporations Code,
to provide guarantees for low-interest interim loans to be made by
lending institutions for the purpose of providing interim financing
to enable small businesses that have suffered actual physical damage
or significant economic losses, as a result of the disaster or state
of emergency for which funding under this section is made available,
to continue or resume operations pending receipt of loans made or
guaranteed by the federal Small Business Administration. The maximum
amount of any loan guarantee funded under this paragraph shall not
exceed two hundred thousand dollars ($200,000). Each loan guarantee
shall not exceed 95 percent of the loan amount, except that a loan
guarantee may be for 100 percent of the loan amount if the applicant
can demonstrate that access to business records pertinent to the loan
application has been precluded by official action prohibiting
necessary reentry into the affected business premises or that those
business records pertinent to the loan application have been
destroyed. The term of the loan shall be determined by the lending
institution providing the loan or shall be made payable on the date
the proceeds of a loan made or guaranteed by the federal Small
Business Administration with respect to the same damage or loss are
made available to the borrower, whichever event first occurs.
(c) Loan guarantees for which the initial 12-month term has
expired and for which an application for disaster assistance funding
from the federal Small Business Administration is still pending may
be extended until the Small Business Administration has reached a
final decision on the application. Applications for interim loans
shall be processed in an expeditious manner. Wherever possible,
lending institutions shall fund nonconstruction loans within 60
calendar days of application. Loan guarantees for loans that have
been denied funding by the federal Small Business Administration, may
be extended by the financial institution provided that the loan is
for no longer than a maximum of seven years, if the business
demonstrates the ability to repay the loan with an extended loan
term, and a new credit analysis is provided. All loans extended under
this provision shall be repaid in installments of principal and
interest, and be fully amortized over the term of the loan.
Nothing in this This section shall not
preclude the lender from charging reasonable administrative
fees in connection with the loan.
(d) Allocations pursuant to this section shall, for purposes of
all provisions of law, be deemed to be for extraordinary emergency or
disaster response operation costs, as provided in Section 8690.6,
incurred by state employees assigned to work on the financial
development corporation program.
(e) The Business, Transportation Governor'
s Office of Business and Housing Agency
Economic Development may adopt regulations to implement the
loan guarantee program authorized by this section. The
agency Governor's Office of Business and Economic
Development may adopt these regulations as emergency
regulations in accordance with Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3, and for purposes of that chapter,
including Section 11349.6, the adoption of the regulations shall be
considered by the Office of Administrative Law to be necessary for
the immediate preservation of the public peace, health and safety,
and general welfare. Notwithstanding subdivision (e) of Section
11346.1, the regulations shall be repealed within 180 days after
their effective date unless the agency complies with Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3, as provided
in subdivision (e) of Section 11346.1.
(f) Within 60 days of the conclusion of the period for
guaranteeing loans under any small business disaster loan guarantee
program conducted for a disaster as authorized by Section 8684.2, or
Section 14075 of the Corporations Code, the agency
Governor's Office of Business and Economic Development
shall provide a report to the Legislature on loan guarantees approved
and rejected by gender, ethnic group, type of business and location,
and each participating loan institution.
SEC. 64. Section 11532 of the
Government Code is amended to read:
11532. For purposes of this chapter, the following terms shall
have the following meanings, unless the context requires otherwise:
(a) "Director" "Chief" means the
Director Chief of the Office of
Technology Services.
(b) "Technology" includes, but is not limited to, all electronic
technology systems and services, automated information handling,
system design and analysis, conversion of data, computer programming,
information storage and retrieval, and business telecommunications
systems and services.
(c) "Business telecommunications systems and services" includes,
but is not limited to, wireless or wired systems for transport of
voice, video, and data communications, network systems, requisite
facilities, equipment, system controls, simulation, electronic
commerce, and all related interactions between people and machines.
Public safety communications are excluded from this definition.
(d) "Public agencies" include, but are not limited to, all state
and local governmental agencies in the state, including cities,
counties, other political subdivisions of the state, state
departments, agencies, boards, and commissions, and departments,
agencies, boards, and commissions of other states and federal
agencies.
SEC. 65. Section 11534 of the
Government Code is amended to read:
11534. (a) There is in state government,
the Government Operations Agency, in the California
Technology Agency, Department of Technology, the
Office of Technology Services.
(b) The purpose of this article is to establish a general purpose
technology services provider to serve the common technology needs of
executive branch entities with accountability to customers for
providing secure services that are responsive to client needs at a
cost representing best value to the state.
(c) The purpose of this chapter is to improve and coordinate the
use of technology and to coordinate and cooperate with all public
agencies in the state in order to eliminate duplications and to bring
about economies that could not otherwise be obtained.
(d) Unless the context clearly requires otherwise, whenever the
term "Department of Technology Services" appears in any statute,
regulation, or contract, it shall be deemed to refer to the Office of
Technology Services, and whenever the term "Director of Technology
Services" appears in statute, regulation, or contract, it shall be
deemed to refer to the Secretary Chief
of California Technology. the Office of
Technology Services.
(e) Unless the context clearly requires otherwise, the Office of
Technology Services and the Secretary
Director of California Technology succeed to
and are vested with all the duties, powers, purposes,
responsibilities, and jurisdiction vested in the former Department of
Technology Services and the former Director of Technology Services,
or Secretary of California Technology, respectively.
(f) All employees serving in state civil service, other than
temporary employees, who are engaged in the performance of functions
transferred to the Office of Technology Services, are transferred to
the Office of Technology Services. The status, positions, and rights
of those persons shall not be affected by their transfer and shall
continue to be retained by them pursuant to the State Civil Service
Act (Part 2 (commencing with Section 18500) of Division 5), except as
to positions the duties of which are vested in a position exempt
from civil service. The personnel records of all transferred
employees shall be transferred to the Office of Technology Services.
(g) The property of any office, agency, or department related to
functions transferred to the Office of Technology Services is
transferred to the Office of Technology Services. If any doubt arises
as to where that property is transferred, the Department of General
Services shall determine where the property is transferred.
(h) All unexpended balances of appropriations and other funds
available for use in connection with any function or the
administration of any law transferred to the Office of Technology
Services shall be transferred to the Office of Technology Services
for the use and for the purpose for which the appropriation was
originally made or the funds were originally available. If there is
any doubt as to where those balances and funds are transferred, the
Department of Finance shall determine where the balances and funds
are transferred.
SEC. 66. Section 11538 of the
Government Code is amended to read:
11538. The director Chief of the Office of
Technology Services shall be appointed by, and serve at the
pleasure of, the Governor, subject to Senate confirmation. The
chief shall report to the Director of Technology.
SEC. 67. Section 11539 of the
Government Code is amended to read:
11539. The director chief shall be
responsible for managing the affairs of the Office of Technology
Services and shall perform all duties, exercise all powers and
jurisdiction, and assume and discharge all responsibilities necessary
to carry out the purposes of this chapter. The Office of Technology
Services shall employ professional, clerical, technical, and
administrative personnel as necessary to carry out this chapter.
SEC. 68. Section 11540 of the
Government Code is amended to read:
11540. The Secretary Director of
California Technology shall propose to the
Director of Finance rates for Office of Technology Services' services
based on a formal rate methodology. The Director of Finance shall
approve the proposal based on the reasonableness of the rates and any
significant impact on departmental budgets. The secretary
Director of Technology and the Director of
Finance shall coordinate to develop policies and procedures to
implement this section, including, but not limited to, the format and
timeframe of the rate proposal.
SEC. 69. Section 11541 of the
Government Code is amended to read:
11541. (a) The Office of Technology Services may acquire,
install, equip, maintain, and operate new or existing business
telecommunications systems and services. Acquisitions for information
technology goods and services shall be made pursuant to Chapter 3
(commencing with Section 12100) of Part 2 of Division 2 of the Public
Contract Code. To accomplish that purpose, the Office of Technology
Services may enter into contracts, obtain licenses, acquire personal
property, install necessary equipment and facilities, and do other
acts that will provide adequate and efficient business
telecommunications systems and services. Any system established shall
be made available to all public agencies in the state on terms that
may be agreed upon by the agency and the Office of Technology
Services.
(b) With respect to business telecommunications systems and
services, the Office of Technology Services may do all of the
following:
(1) Provide representation of public agencies before the Federal
Communications Commission in matters affecting the state and other
public agencies regarding business telecommunications systems and
services issues.
(2) Provide, upon request, advice to public agencies concerning
existing or proposed business telecommunications systems and services
between any and all public agencies.
(3) Recommend to public agencies rules, regulations, procedures,
and methods of operation that it deems necessary to effectuate the
most efficient and economical use of business telecommunications
systems and services within the state.
(4) Carry out the policies of this chapter.
(c) The Office of Technology Services has responsibilities with
respect to business telecommunications systems, services, policy, and
planning, which include, but are not limited to, all of the
following:
(1) Assessing the overall long-range business telecommunications
needs and requirements of the state considering both routine and
emergency operations for business telecommunications systems and
services, performance, cost, state-of-the-art technology, multiuser
availability, security, reliability, and other factors deemed to be
important to state needs and requirements.
(2) Developing strategic and tactical policies and plans for
business telecommunications with consideration for the systems and
requirements of public agencies.
(3) Recommending industry standards, service level agreements, and
solutions regarding business telecommunications systems and services
to ensure multiuser availability and compatibility.
(4) Providing advice and assistance in the selection of business
telecommunications equipment to ensure all of the following:
(A) Ensuring that the business telecommunications needs of state
agencies are met.
(B) Ensuring that procurement is compatible throughout state
agencies and is consistent with the state's strategic and tactical
plans for telecommunications.
(C) Ensuring that procurement is designed to leverage the buying
power of the state and encourage economies of scale.
(5) Providing management oversight of statewide business
telecommunications systems and services developments.
(6) Providing for coordination of, and comment on, plans and
policies and operational requirements from departments that utilize
business telecommunications systems and services as determined by the
Office of Technology Services.
(7) Monitoring and participating, on behalf of the state, in the
proceedings of federal and state regulatory agencies and in
congressional and state legislative deliberations that have an impact
on state governmental business telecommunications activities.
(d) The Office of Technology Services shall develop and describe
statewide policy on the use of business telecommunications systems
and services by state agencies. In the development of that policy,
the Office of Technology Services shall ensure that access to state
business information and services is improved, and that the policy is
cost effective for the state and its residents. The Office of
Technology Services shall develop guidelines that do all of the
following:
(1) Describe what types of state business information and services
may be accessed using business telecommunications systems and
services.
(2) Characterize the conditions under which a state agency may
utilize business telecommunications systems and services.
(3) Characterize the conditions under which a state agency may
charge for information and services.
(4) Specify pricing policies.
(5) Provide other guidance as may be appropriate at the discretion
of the Office of Technology Services.
(e) It is the intent of the Legislature that this section
supersede Section 11541 of the Government Code, as added by Section 1
of the Governor's Reorganization Plan No. 2, effective July 9, 2005.
SEC. 70. Section 11542 of the
Government Code is amended to read:
11542. (a) (1) The Stephen P. Teale Data Center and the
California Health and Human Services Agency Data Center are
consolidated within, and their functions are transferred to, the
Office of Technology Services.
(2) Except as expressly provided otherwise in this chapter, the
Office of Technology Services is the successor to, and is vested
with, all of the duties, powers, purposes, responsibilities, and
jurisdiction of the Stephen P. Teale Data Center, and the California
Health and Human Services Agency Data Center. Any reference in
statutes, regulations, or contracts to those entities with respect to
the transferred functions shall be construed to refer to the Office
of Technology Services unless the context clearly requires otherwise.
(3) No A contract, lease, license,
or any other agreement to which either the Stephen P. Teale Data
Center or the California Health and Human Services Agency Data Center
is a party shall not be void or voidable by reason of
this chapter, but shall continue in full force and effect, with the
Office of Technology Services assuming all of the rights,
obligations, and duties of the Stephen P. Teale Data Center or the
California Health and Human Services Agency Data Center,
respectively.
(4) Notwithstanding subdivision (e) of Section 11793 and
subdivision (e) of Section 11797, on and after the effective date of
this chapter, the balance of any funds available for expenditure by
the Stephen P. Teale Data Center and the California Health and Human
Services Agency Data Center, with respect to business
telecommunications systems and services functions in carrying out any
functions transferred to the Office of Technology Services by this
chapter, shall be transferred to the Technology Services Revolving
Fund created by Section 11544, and shall be made available for the
support and maintenance of the Office of Technology Services.
(5) All references in statutes, regulations, or contracts to the
former Stephen P. Teale Data Center Fund or the California Health and
Human Services Data Center Revolving Fund shall be construed to
refer to the Technology Services Revolving Fund unless the context
clearly requires otherwise.
(6) All books, documents, records, and property of the Stephen P.
Teale Data Center and the California Health and Human Services Agency
Data Center, excluding the Systems Integration Division, shall be
transferred to the Office of Technology Services.
(7) (A) All officers and employees of the former Stephen P. Teale
Data Center and the California Health and Human Services Agency Data
Center, are transferred to the Office of Technology Services.
(B) The status, position, and rights of any officer or employee of
the Stephen P. Teale Data Center and the California Health and Human
Services Agency Data Center, shall not be affected by the transfer
and consolidation of the functions of that officer or employee to the
Office of Technology Services.
(b) (1) All duties and functions of the Telecommunications
Division of the Department of General Services are transferred to the
California Technology Agency. Department of
Technology.
(2) Unless the context clearly requires otherwise, whenever the
term "Telecommunications Division of the Department of General
Services" or "California Technology Agency" appears in any
statute, regulation, or contract, it shall be deemed to refer to the
California Technology Agency. Department of
Technology.
(3) All employees serving in state civil service, other than
temporary employees, who are engaged in the performance of functions
transferred to the California Technology Agency,
Department of Technology, are transferred to the
California Technology Agency. Department of
Technology. The status, positions, and rights of those persons
shall not be affected by their transfer and shall continue to be
retained by them pursuant to the State Civil Service Act (Part 2
(commencing with Section 18500) of Division 5), except as to
positions the duties of which are vested in a position exempt from
civil service. The personnel records of all transferred employees
shall be transferred to the California Technology Agency.
Department of Technology.
(4) The property of any office, agency, or department related to
functions transferred to the California Technology Agency,
Department of Technology, are transferred to the
California Technology Agency. Department of
Technology. If any doubt arises as to where that property is
transferred, the Department of General Services shall determine where
the property is transferred.
(5) All unexpended balances of appropriations and other funds
available for use in connection with any function or the
administration of any law transferred to the California
Department of Technology Agency
shall be transferred to the California
Department of Technology Agency for the
use and for the purpose for which the appropriation was originally
made or the funds were originally available. If there is any doubt as
to where those balances and funds are transferred, the Department of
Finance shall determine where the balances and funds are
transferred.
SEC. 71. 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 Secretary
Director of California Technology to receive
all revenues from the sale of technology or technology services
provided for in this chapter, for other services rendered by the
California Technology Agency, Department of
Technology, and all other moneys properly credited to the
California Department of Technology
Agency 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 California Technology Agency,
Department of Technology, and costs associated with approved
information technology projects, and to establish reserves. At the
discretion of the Secretary Director of
California 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
California Department of Technology
Agency from any other source, including the return from
investments of moneys by the Treasurer.
(c) The California Department of
Technology Agency may collect payments from public
agencies for providing services to those agencies that the agencies
have requested from the California Technology Agency.
Department of Technology. The
California Department of Technology
Agency may require monthly payments by client agencies for
the services the agencies have requested. Pursuant to Section 11255,
the Controller shall transfer any amounts so authorized by the
California Technology Agency, Department of
Technology, consistent with the annual budget of each
department, to the fund. The California
Department of Technology Agency 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 California Technology Agency's
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. 72. Section 11546 of the
Government Code is amended to read:
11546. (a) The California Department of
Technology Agency shall be responsible for
the approval and oversight of information technology projects, which
shall include, but are not limited to, all of the following:
(1) Establishing and maintaining a framework of policies,
procedures, and requirements for the initiation, approval,
implementation, management, oversight, and continuation of
information technology projects. Unless otherwise required by law, a
state department shall not procure oversight services of information
technology projects without the approval of the California
Technology Agency. Department of Technology.
(2) Evaluating information technology projects based on the
business case justification, resources requirements, proposed
technical solution, project management, oversight and risk mitigation
approach, and compliance with statewide strategies, policies, and
procedures. Projects shall continue to be funded through the
established Budget Act process.
(3) Consulting with agencies during initial project planning to
ensure that project proposals are based on well-defined programmatic
needs, clearly identify programmatic benefits, and consider feasible
alternatives to address the identified needs and benefits consistent
with statewide strategies, policies, and procedures.
(4) Consulting with agencies prior to project initiation to review
the project governance and management framework to ensure that it is
best designed for success and will serve as a resource for agencies
throughout the project implementation.
(5) Requiring agencies to provide information on information
technology projects including, but not limited to, all of the
following:
(A) The degree to which the project is within approved scope,
cost, and schedule.
(B) Project issues, risks, and corresponding mitigation efforts.
(C) The current estimated schedule and costs for project
completion.
(6) Requiring agencies to perform remedial measures to achieve
compliance with approved project objectives. These remedial measures
may include, but are not limited to, any of the following:
(A) Independent assessments of project activities, the cost of
which shall be funded by the agency administering the project.
(B) Establishing remediation plans.
(C) Securing appropriate expertise, the cost of which shall be
funded by the agency administering the project.
(D) Requiring additional project reporting.
(E) Requiring approval to initiate any action identified in the
approved project schedule.
(7) Suspending, reinstating, or terminating information technology
projects. The agency Department of
Technology shall notify the Joint Legislative Budget Committee
of any project suspension, reinstatement, and termination within 30
days of that suspension, reinstatement, or termination.
(8) Establishing restrictions or other controls to mitigate
nonperformance by agencies, including, but not limited to, any of the
following:
(A) The restriction of future project approvals pending
demonstration of successful correction of the identified performance
failure.
(B) The revocation or reduction of authority for state agencies to
initiate information technology projects or acquire information
technology or telecommunications goods or services.
(b) The California Department of
Technology Agency shall have the authority to
delegate to another agency any authority granted under this section
based on its assessment of the agency's project management, project
oversight, and project performance.
SEC. 73. Section 11549 of the
Government Code is amended to read:
11549. (a) There is in state government, in the
California Technology Agency, Department of
Technology, the Office of Information Security. The purpose of
the Office of Information Security is to ensure the confidentiality,
integrity, and availability of state systems and applications, and to
promote and protect privacy as part of the development and
operations of state systems and applications to ensure the trust of
the residents of this state.
(b) The office shall be under the direction of a
director, chief, who shall be appointed by, and
serve at the pleasure of, the Governor. The director
chief shall report to the Secretary
Director of California
Technology, and shall lead the Office of Information Security in
carrying out its mission.
(c) The duties of the Office of Information Security, under the
direction of the director, chief, shall
be to provide direction for information security and privacy to
state government agencies, departments, and offices, pursuant to
Section 11549.3.
(d) (1) Unless the context clearly requires otherwise, whenever
the term "Office of Information Security and Privacy Protection"
appears in any statute, regulation, or contract, it shall be deemed
to refer to the Office of Information Security, and whenever the term
"executive director of the Office of Information Security and
Privacy Protection" appears in statute, regulation, or contract, it
shall be deemed to refer to the Director
Chief of the Office of Information Security.
(2) All employees serving in state civil service, other than
temporary employees, who are engaged in the performance of functions
transferred from the Office of Information Security and Privacy
Protection to the Office of Information Security, are transferred to
the Office of Information Security. The status, positions, and rights
of those persons shall not be affected by their transfer and shall
continue to be retained by them pursuant to the State Civil Service
Act (Part 2 (commencing with Section 18500) of Division 5), except as
to positions the duties of which are vested in a position exempt
from civil service. The personnel records of all transferred
employees shall be transferred to the Office of Information Security.
(3) The property of any office, agency, or department related to
functions transferred to the Office of Information Security is
transferred to the Office of Information Security. If any doubt
arises as to where that property is transferred, the Department of
General Services shall determine where the property is transferred.
(4) All unexpended balances of appropriations and other funds
available for use in connection with any function or the
administration of any law transferred to the Office of Information
Security shall be transferred to the Office of Information Security
for the use and for the purpose for which the appropriation was
originally made or the funds were originally available. If there is
any doubt as to where those balances and funds are transferred, the
Department of Finance shall determine where the balances and funds
are transferred.
SEC. 74. Section 11549.1 of the
Government Code is amended to read:
11549.1. As used in this article, the following terms have the
following meanings:
(a) "Director" "Chief" means the
Director Chief of the Office of
Information Security.
(b) "Office" means the Office of Information Security.
(c) "Program" means an information security program established
pursuant to Section 11549.3.
SEC. 75. Section 11549.3 of the
Government Code is amended to read:
11549.3. (a) The director Chief of the
Office of Information Security shall establish an information
security program. The program responsibilities include, but are not
limited to, all of the following:
(1) The creation, updating, and publishing of information security
and privacy policies, standards, and procedures for state agencies
in the State Administrative Manual.
(2) The creation, issuance, and maintenance of policies,
standards, and procedures directing state agencies to effectively
manage security and risk for all of the following:
(A) Information technology, which includes, but is not limited to,
all electronic technology systems and services, automated
information handling, system design and analysis, conversion of data,
computer programming, information storage and retrieval,
telecommunications, requisite system controls, simulation, electronic
commerce, and all related interactions between people and machines.
(B) Information that is identified as mission critical,
confidential, sensitive, or personal, as defined and published by the
office.
(3) The creation, issuance, and maintenance of policies,
standards, and procedures directing state agencies for the
collection, tracking, and reporting of information regarding security
and privacy incidents.
(4) The creation, issuance, and maintenance of policies,
standards, and procedures directing state agencies in the
development, maintenance, testing, and filing of each agency's
disaster recovery plan.
(5) Coordination of the activities of agency information security
officers, for purposes of integrating statewide security initiatives
and ensuring compliance with information security and privacy
policies and standards.
(6) Promotion and enhancement of the state agencies' risk
management and privacy programs through education, awareness,
collaboration, and consultation.
(7) Representing the state before the federal government, other
state agencies, local government entities, and private industry on
issues that have statewide impact on information security and
privacy.
(b) An information security officer appointed pursuant to Section
11546.1 shall implement the policies and procedures issued by the
Office of Information Security, including, but not limited to,
performing all of the following duties:
(1) Comply with the information security and privacy policies,
standards, and procedures issued pursuant to this chapter by the
Office of Information Security.
(2) Comply with filing requirements and incident notification by
providing timely information and reports as required by policy or
directives of the office.
(c) The office may conduct, or require to be conducted,
independent security assessments of any state agency, department, or
office, the cost of which shall be funded by the state agency,
department, or office being assessed.
(d) The office may require an audit of information security to
ensure program compliance, the cost of which shall be funded by the
state agency, department, or office being audited.
(e) The office shall report to the California
Department of Technology Agency any
state agency found to be noncompliant with information security
program requirements.
SEC. 76. Section 12802.8 of the
Government Code is amended to read:
12802.8. The Governor may, with respect to the Business,
Transportation and Housing Agency,
appoint a Deputy Secretary of Housing,
Housing Coordination, who shall serve as the secretary's
primary advisor on housing matters, including, but not limited
to, sustainable growth policy matters, and other strategies to
achieve the state's greenhouse gas emission reduction objectives as
it pertains to those housing matters.
The Deputy Secretary of Housing Coordination shall hold
office at the pleasure of the secretary
Governor and shall receive a salary as shall be fixed by the
secretary Governor with the approval of
the Department of Finance.
SEC. 77. The heading of Article 5 (commencing with
Section 13995.50) of Chapter 1 of Part 4.7 of Division 3
of Title 2 of the Government Code is amended to
read:
Article 5. Secretary Director
SEC. 78. Section 13995.60 of the
Government Code is amended to read:
13995.60. (a) As used in this article and Article 7 (commencing
with Section 13995.65), "assessment level" means the estimated gross
dollar amount received by assessment from all assessed businesses on
an annual basis, and "assessment formula" means the allocation method
used within each industry segment (for example, percentage of gross
revenue or percentage of transaction charges).
(b) Commencing on January 1, 2003, a referendum shall be called
every two years, and the commission, by adopted resolution, shall
determine the slate of individuals who will run for commissioner. The
resolution shall also cover, but not be limited to, the proposed
assessment level for each industry category, based upon specified
assessment formulae, together with necessary information to enable
each assessed business to determine what its individual assessment
would be. Commencing with the referendum held in 2007 and every six
years thereafter, the resolution shall also cover the termination or
continuation of the commission. The resolution may also include an
amended industry segment allocation formula and the percentage
allocation of assessments between industry categories and segments.
The commission may specify in the resolution that a special, lower
assessment rate that was set pursuant to subdivision (c) of Section
13995.30 for a particular business will no longer apply due to
changes in the unique circumstance that originally justified the
lower rate. The resolution may include up to three possible
assessment levels for each industry category, from which the assessed
businesses will select one assessment level for each industry
category by plurality weighted vote.
(c) The commission shall deliver to the secretary
director the resolution described in subdivision
(b). The secretary director shall call
a referendum containing the information required by subdivision (b)
plus any additional matters complying with the procedures of
subdivision (b) of Section 13995.62.
(d) When the secretary director
calls a referendum, all assessed businesses shall be sent a ballot
for the referendum. Every ballot that the secretary receives by the
ballot deadline shall be counted, utilizing the weighted formula
adopted initially by the selection committee, and subsequently
amended by referendum.
(e) If the commission's assessment level is significantly
different from what was projected when the existing assessment
formula was last approved by referendum, a majority of members, by
weighted votes of an industry category, may petition for a referendum
to change the assessment formula applicable to that industry
category.
(f) If the referendum includes more than one possible assessment
rate for each industry category, the rate with the plurality of
weighted votes within a category shall be adopted.
(g) Notwithstanding any other provision of this section, if the
commission delivers to the secretary director
a resolution pertaining to any matter described in subdivision
(b), the secretary director shall call
a referendum at a time or times other than as specified in this
section. Each referendum shall contain only those matters contained
in the resolution.
(h) Notwithstanding any other provision of this section, the
secretary director shall identify, to
the extent reasonably feasible, those businesses that would become
newly assessed due to a change in category, segment, threshold, or
exemption status sought via referendum, and provide those businesses
the opportunity to vote in that referendum.
(i) This section shall become operative only if the Secretary of
Business, Transportation and Housing provides notice to the
Legislature and the Secretary of State and posts notice on its
Internet Web site that the conditions described in Section 13995.92
have been satisfied.
SEC. 79. Section 13995.64.5 of the
Government Code is amended to read:
13995.64.5. (a)
Notwithstanding subdivision (a) of Section 13995.64, if an assessed
business within the passenger car rental category pays an assessment
greater than the maximum assessment, determined by the commission for
other industry categories, the weighted percentage assigned to that
assessed business shall be the same as though its assessment were
equal to the highest maximum assessment.
(b) This section shall become operative only if the Secretary of
Business, Transportation and Housing provides notice to the
Legislature and the Secretary of State and posts notice on its
Internet Web site that the conditions described in Section 13995.92
have been satisfied.
SEC. 80. Section 13995.65.5 of the
Government Code is amended to read:
13995.65.5. (a)
Notwithstanding Section 13995.65 or any other provision of this
chapter, for purposes of calculating the assessment for a business
within the passenger car rental category, the assessment shall be
collected only on each rental transaction that commences at either an
airport or at a hotel or other overnight lodging with respect to
which a city, city and county, or county is authorized to levy a tax
as described in Section 7280 of the Revenue and Taxation Code. A
transaction commencing at an airport or hotel or other overnight
lodging subject to a transient occupancy tax as described in Section
7280 of the Revenue and Taxation Code, including those that commence
at a location that might otherwise by regulation be exempt from
assessment, shall be subject to the assessment. The assessment shall
always be expressed as a fixed percentage of the amount of the rental
transaction.
(b) This section shall become operative only if the Secretary of
Business, Transportation and Housing provides notice to the
Legislature and the Secretary of State and posts notice on its
Internet Web site that the conditions described in Section 13995.92
have been satisfied.
SEC. 81. Section 13995.92 of the
Government Code is repealed.
13995.92. (a) The California Travel and Tourism Commission shall
submit a referendum to the passenger rental car industry as soon as
possible, but not later than March 31, 2007. The referendum shall
propose an assessment level upon the passenger rental car industry,
as an industry category, under this chapter. The proposed assessment
rate shall be set at a level determined by the commission that will
generate funding that will be sufficient, when aggregated together
with other funding for the commission, minus amounts reverted to the
general fund pursuant to Item 0520-495 of Section 2 of the Budget Act
of 2006, for a spending plan for the
2006-07 fiscal year of twenty-five million dollars
($25,000,000), and for the 2007-08 fiscal year of fifty million
dollars ($50,000,000).
(b) The commission shall report to the Secretary of Business,
Transportation and Housing if the referendum and assessment rates
described in subdivision (a) are agreed to. The secretary shall
immediately provide notice of that agreement to the Legislature and
the Secretary of State and shall also post notice of that agreement
on its Internet Web site.
SEC. 82. Section 13997.7 of the
Government Code is amended to read:
13997.7. (a) Notwithstanding any other provision of law,
effective January 1, 2008, the Economic Adjustment Assistance Grant
funded through the United States Economic Development Administration
under Title IX of the Public Works and Economic Development Act of
1965 (Grant No. 07-19-02709 and 07-19-2709.1) shall be administered
by the Secretary Director of
Business, Transportation the Governor's Office of
Business and Housing, Economic
Development, and, for the purpose of state administration of
this grant, the secretary Director of the
Governor's Office of Business and Economic Development shall be
deemed to be the successor to the former Secretary of Technology,
Trade and Commerce. The secretary Director of
the Governor's Office of Business and Economic Development may
assign and contract administration of the grant to a public agency
created pursuant to Chapter 5 (commencing with Section 6500) of
Division 7 of Title 1.
(b) On January 1, 2008, all federal moneys held in the Sudden and
Severe Economic Dislocation Grant Account within the Special Deposit
Fund are hereby transferred to the Small Business Expansion Fund
created pursuant to Section 14030 of the Corporations Code for
expenditure by the Business, Transportation
Governor's Office of Business and Housing Agency
Economic Development pursuant to Article 9
(commencing with Section 14070) of the Corporations Code for purposes
of the Sudden and Severe Economic Dislocation Grant program, or
other purposes permitted by the cognizant federal agency.
(c) All loan repayments received on or after January 1, 2008, for
the Sudden and Severe Economic Dislocation Grant program loans issued
pursuant to former Section 15327 (repealed by Section 1.8 of Chapter
229 of the Statutes of 2003 (AB 1757)) and this section, shall be
deposited into the Small Business Expansion Fund and shall be
available to the Business, Transportation
Governor's Office of Business and Housing Agency
Economic Development for expenditure pursuant to
the provisions of Article 9 (commencing with Section 14070) of the
Corporations Code for the Sudden and Severe Economic Dislocation
Grant program, or other purposes permitted by the cognizant federal
agency.
SEC. 83. Section 14030 of the
Government Code is amended to read:
14030. The powers and duties of the department shall
include, but are not be
limited to, all of the following activities:
(a) Supporting the commission in coordinating and developing, in
cooperation with local and regional entities, comprehensive balanced
transportation planning and policy for the movement of people and
goods within the state.
(b) Coordinating and assisting, upon request of, the various
public and private transportation entities in strengthening their
development and operation of balanced integrated mass transportation,
highway, aviation, maritime, railroad, and other transportation
facilities and services in support of statewide and regional goals.
(c) Developing, in cooperation with local and regional
transportation entities, the full potential of all resources and
opportunities which that are now, and
may become, available to the state and to regional and local agencies
for meeting California's transportation needs, as provided by
statutes and, in particular, maximizing the amount of federal funds
which that may be available to the
state and increasing the efficiency by which such
those funds are utilized.
(d) Planning, designing, constructing, operating, and maintaining
those transportation systems which that
the Legislature has made, or may make, the responsibility of the
department; provided that the department is not authorized to assume
the functions of project planning, designing, constructing,
operating, or maintaining maritime or aviation facilities without
express prior approval of the Legislature with the exception of those
aviation functions which that have
been designated for the department in the Public Utilities Code.
(e) Coordinating and developing transportation research projects
of statewide interest.
(f) Exercising such other functions, powers,
and duties as are or may be provided for by law.
(g) With the Department of Housing and Community Development,
investigating and reporting to the Secretary of the
Business, Transportation and the Secretary of B
usiness, Consumer Services and Housing Agency
upon the consistency between state, local, and federal
housing plans and programs and state, local, and federal
transportation plans and programs.
SEC. 84. Section 14998.3 of the
Government Code is amended to read:
14998.3. (a) The commission shall submit a list of recommended
candidates for the position of Director of the Film Commission to the
Governor for consideration. The Governor shall appoint the director.
(b) The Director of the Film Commission shall receive a salary to
be determined by the Department of Human Resources.
(c) The secretary, Director of the
Governor's Office of Business and Economic Development, or his
or her designee, shall act as the director during the absence from
the state or other temporary absence, disability, or unavailability
of the director, or during a vacancy in that position.
SEC. 85. Sectio n 14998.4 of the
Government Code is amended to read:
14998.4. (a) The commission shall meet at least quarterly and
shall select a chairperson and a vice chairperson from among its
members. The vice chairperson shall act as chairperson in the
chairperson's absence.
(b) Each commission member shall serve without compensation but
shall be reimbursed for traveling outside the county in which he or
she resides to attend meetings.
(c) The commission shall work to encourage motion picture and
television filming in California and to that end, shall exercise all
of the powers provided in this chapter.
(d) The commission shall make recommendations to the Legislature,
the Governor, the Business, Transportation
Governor's Office of Business and Housing Agency,
Economic Development, and other state agencies
on legislative or administrative actions that may be necessary or
helpful to maintain and improve the position of the state's motion
picture industry in the national and world markets.
(e) In addition, subject to the provision of funding appropriated
for these purposes, the commission shall do all of the following:
(1) Adopt guidelines for a standardized permit to be used by state
agencies and the director.
(2) Approve or modify the marketing and promotion plan developed
by the director pursuant to subdivision (d) of Section 14998.9 to
promote filmmaking in the state.
(3) Conduct workshops and trade shows.
(4) Provide expertise in promotional activities.
(5) Hold hearings.
(6) Adopt its own operational rules and procedures.
(7) Counsel the Legislature and the Governor on issues relating to
the motion picture industry.
SEC. 86. Section 14998.6 of the
Government Code is amended to read:
14998.6. The director of the commission shall provide staff
support to the California Film Commission. When needed, the
secretary Director of the Governor's Office of
Business and Economic Development may assign additional staff
on a temporary or permanent basis.
SEC. 87. Secti on 14998.7 of the
Government Code is amended to read:
14998.7. Any funds appropriated to, or for use by, the California
Film Commission for purposes of this chapter, shall be under the
control of the secretary Director of the
Governor's Office of Business and Economic Development or his
or her designee.
SEC. 88. Section 15251 of the
Government Code is amended to read:
15251. Unless the context requires otherwise, as used in this
part, the following terms shall have the following meanings:
(a) "Agency" "Department" means the
California Technology Agency. Department of
Technology.
(b) "Division" "Office" means the
Public Safety Communications Division Office
established by this part.
SEC. 89. Section 15277 of the
Government Code is amended to read:
15277. The Public Safety Communications Division
Office is established within the
agency. department. The duties of the
division office shall include, but not be
limited to, all of the following:
(a) Assessing the overall long-range public safety communications
needs and requirements of the state considering emergency operations,
performance, cost, state-of-the-art technology, multiuser
availability, security, reliability, and other factors deemed to be
important to state needs and requirements.
(b) Developing strategic and tactical policies and plans for
public safety communications with consideration for the systems and
requirements of the state and all public agencies in this state, and
preparing an annual strategic communications plan that includes the
feasibility of interfaces with federal and other state
telecommunications networks and services.
(c) Recommending industry standards for public safety
communications systems to ensure multiuser availability and
compatibility.
(d) Providing advice and assistance in the selection of
communications equipment to ensure that the public safety
communications needs of state agencies are met and that procurements
are compatible throughout state agencies and are consistent with the
state's strategic and tactical plans for public safety
communications.
(e) Providing management oversight of statewide public safety
communications systems developments.
(f) Providing for coordination of, and comment on, plans,
policies, and operational requirements from departments that utilize
public safety communications in support of their principal function,
such as the California Emergency Management Agency, National Guard,
health and safety agencies, and others with primary public safety
communications programs.
(g) Monitoring and participating on behalf of the state in the
proceedings of federal and state regulatory agencies and in
congressional and state legislative deliberations that have an impact
on state government public safety communications activities.
(h) Developing plans regarding teleconferencing as an alternative
to state travel during emergency situations.
(i) Ensuring that all radio transmitting devices owned or operated
by state agencies and departments are licensed, installed, and
maintained in accordance with the requirements of federal law. A
request for a federally required license for a state-owned radio
transmitting device shall be sought only in the name of the "State of
California."
(j) Acquiring, installing, equipping, maintaining, and operating
new or existing public safety communications systems and facilities
for public safety agencies. To accomplish that purpose, the
division office is authorized to enter into
contracts, obtain licenses, acquire property, install necessary
equipment and facilities, and do other necessary acts to provide
adequate and efficient public safety communications systems. Any
systems established shall be available to all public agencies in the
state on terms that may be agreed upon by the public agency and the
division. office.
(k) Acquiring, installing, equipping, maintaining, and operating
all new or replacement microwave communications systems operated by
the state, except microwave equipment used exclusively for traffic
signal and signing control, traffic metering, and roadway
surveillance systems. To accomplish that purpose, the
division office is authorized to enter into
contracts, obtain licenses, acquire property, install necessary
equipment and facilities, and do other necessary acts to provide
adequate and efficient microwave communications systems. Any system
established shall be available to all public safety agencies in the
state on terms that may be agreed upon by the public agency and the
division. office.
( l ) This chapter shall not apply to Department of
Justice communications operated pursuant to Chapter 2.5 (commencing
with Section 15150) of Part 6.
SEC. 90. Section 53108.5 of the
Government Code is amended to read:
53108.5. "Division," "Office," as
used in this article, means the Public Safety Communications
Division Office within the California
Technology Agency. Department of Technology.
SEC. 91. Section 53113 of the
Government Code is amended to read:
53113. The Legislature finds that, because of overlapping
jurisdiction of public agencies, public safety agencies, and
telephone service areas, a general overview or plan should be
developed prior to the establishment of any system. In order to
ensure that proper preparation and implementation of those systems is
accomplished by all public agencies by December 31, 1985, the
division, office, with the advice and
assistance of the Attorney General, shall secure compliance by public
agencies as provided in this article.
SEC. 92. Section 53114 of the
Government Code is amended to read:
53114. The division, office, with
the advice and assistance of the Attorney General, shall coordinate
the implementation of systems established pursuant to the provisions
of this article. The division, office,
with the advice and assistance of the Attorney General, shall assist
local public agencies and local public safety agencies in obtaining
financial help to establish emergency telephone service, and shall
aid agencies in the formulation of concepts, methods, and procedures
that will improve the operation of systems required by this article
and that will increase cooperation between public safety agencies.
SEC. 93. Section 53114.1 of the
Government Code is amended to read:
53114.1. To accomplish the responsibilities specified in this
article, the division office is directed
to consult at regular intervals with the State Fire Marshal, the
State Department of Public Health, the Office of Traffic Safety, the
California Office of Emergency
Management Agency, Services, a local
representative from a city, a local representative from a county, the
public utilities in this state providing telephone service, the
Association of Public-Safety Communications Officials, the Emergency
Medical Services Authority, the Department of the California Highway
Patrol, and the Department of Forestry and Fire Protection. These
agencies shall provide all necessary assistance and consultation to
the division office to enable it to
perform its duties specified in this article.
SEC. 94. Section 53114.2 of the
Government Code is amended to read:
53114.2. On or before December 31, 1976, and each even-numbered
year thereafter, after consultation with all agencies specified in
Section 53114.1, the division office
shall review and update technical and operational standards for
public agency systems.
SEC. 95. Section 53115 of the
Government Code is amended to read:
53115. The division office shall
monitor all emergency telephone systems to ensure they comply with
minimal operational and technical standards as established by the
division. office. If any system does
not comply the division office shall
notify in writing the public agency or agencies operating the system
of its deficiencies. The public agency shall bring the system into
compliance with the operational and technical standards within 60
days of notice by the division. office.
Failure to comply within such this
time shall subject the public agency to action by the Attorney
General pursuant to Section 53116.
SEC. 96. Section 53115.1 of the
Government Code is amended to read:
53115.1. (a) There is in state government the State 911 Advisory
Board.
(b) The advisory board shall be comprised of the following members
appointed by the Governor who shall serve at the pleasure of the
Governor.
(1) The Chief of the California 911 Emergency Communications
Office shall serve as the nonvoting chair of the board.
(2) One representative from the Department of the California
Highway Patrol.
(3) Two representatives on the recommendation of the California
Police Chiefs Association.
(4) Two representatives on the recommendation of the California
State Sheriffs' Association.
(5) Two representatives on the recommendation of the California
Fire Chiefs Association.
(6) Two representatives on the recommendation of the CalNENA
Executive Board.
(7) One representative on the joint recommendation of the
executive boards of the state chapters of the Association of
Public-Safety Communications Officials-International, Inc.
(c) Recommending authorities shall give great weight and
consideration to the knowledge, training, and expertise of the
appointee with respect to their experience within the California 911
system. Board members should have at least two years of experience as
a Public Safety Answering Point (PSAP) manager or county
coordinator, except where a specific person is designated as a
member.
(d) Members of the advisory board shall serve at the pleasure of
the Governor, but may not serve more than two consecutive two-year
terms, except as follows:
(1) The presiding Chief of the California 911 Emergency
Communications Office shall serve for the duration of his or her
tenure.
(2) Four of the members shall serve an initial term of three
years.
(e) Advisory board members shall not receive compensation for
their service on the board, but may be reimbursed for travel and per
diem for time spent in attending meetings of the board.
(f) The advisory board shall meet quarterly in public sessions in
accordance with the Bagley-Keene Open Meeting Act (Article 9
(commencing with Section 11120) of Chapter 2 of Part 1 of Division 3
of Title 2). The division office shall
provide administrative support to the State 911 Advisory Board. The
State 911 Advisory Board, at its first meeting, shall adopt bylaws
and operating procedures consistent with this article and establish
committees as necessary.
(g) Notwithstanding any other provision of law, any member of the
advisory board may designate a person to act as that member in his or
her place and stead for all purposes, as though the member were
personally present.
SEC. 97. Se ction 53115.2 of the
Government Code is amended to read:
53115.2. (a) The State 911 Advisory Board shall advise the
division office on all of the following
subjects:
(1) Policies, practices, and procedures for the California 911
Emergency Communications Office.
(2) Technical and operational standards for the California 911
system consistent with the National Emergency Number Association
(NENA) standards.
(3) Training standards for county coordinators and Public Safety
Answering Point (PSAP) managers.
(4) Budget, funding, and reimbursement decisions related to the
State Emergency Number Account.
(5) Proposed projects and studies conducted or funded by the State
Emergency Number Account.
(6) Expediting the rollout of Enhanced 911 Phase II technology.
(b) Upon request of a local public agency, the board shall conduct
a hearing on any conflict between a local public agency and the
division office regarding a final plan
that has not been approved by the division
office pursuant to Section 53114. The board shall meet within
30 days following the request, and shall make a recommendation to
resolve the conflict to the division office
within 90 days following the initial hearing by the board
pursuant to the request.
SEC. 98. Section 53115.3 of the
Government Code is amended to read:
53115.3. When proposed implementation of the 911 system by a
single public agency within its jurisdiction may adversely affect the
implementation of the system by a neighboring public agency or
agencies, such neighboring public agency may request that the
division office evaluate the impact of
implementation by the proposing public agency and evaluate and weigh
that impact in its decision to approve or disapprove the proposing
public agency's final plan pursuant to Section 53115. In order to
effectuate this process, each city shall file a notice of filing of
its final plan with each adjacent city and with the county in which
the proposing public agency is located at the same time such final
plan is filed with the division office
and each county shall file a notice of filing of its final plan with
each city within the county and each adjacent county at the time the
final plan is filed with the division.
office. Any public agency wishing to request review pursuant to
this section shall file its request with the division
office within 30 days of filing of the final
plan for which review is sought.
SEC. 99. Section 53116 of the
Government Code is amended to read:
53116. The Attorney General may, on behalf of the
division office or on his or her own initiative,
commence judicial proceedings to enforce compliance by any public
agency or public utility providing telephone service with the
provisions of this article.
SEC. 100. Section 53119 of the
Government Code is amended to read:
53119. Any telephone corporation serving rural telephone areas
that cannot currently provide enhanced "911" emergency telephone
service capable of selective routing, automatic number
identification, or automatic location identification shall present to
the division office a comprehensive
plan detailing a schedule by which those facilities will be converted
to be compatible with the enhanced emergency telephone system.
SEC. 101. Section 53120 of the
Government Code is amended to read:
53120. The division office shall
not delay implementation of the enhanced "911" emergency telephone
system in those portions of cities or counties, or both, served by a
local telephone corporation that has equipment compatible with the
enhanced "911" emergency telephone system.
SEC. 102. Section 53126.5 of the
Government Code is amended to read:
53126.5. For purposes of this article, the following definitions
apply:
(a) "Local public agency" means a city, county, city and county,
and joint powers authority that provides a public safety answering
point (PSAP).
(b) "Nonemergency telephone system" means a system structured to
provide access to only public safety agencies such as police and
fire, or a system structured to provide access to public safety
agencies and to all other services provided by a local public agency
such as street maintenance and animal control.
(c) "Public Safety Communications Division"
Office" means the Public Safety Communications
Division Office within the California
Technology Agency. Department of Technology.
SEC. 103. Section 53661 of the
Government Code is amended to read:
53661. (a) The Commissioner of Financial Institutions
Business Oversight shall act as Administrator of
Local Agency Security and shall be responsible for the
administration of Sections 53638, 53651, 53651.2, 53651.4, 53651.6,
53652, 53654, 53655, 53656, 53657, 53658, 53659, 53660, 53661, 53663,
53664, 53665, 53666, and 53667.
(b) The administrator shall have the powers necessary or
convenient to administer and enforce the sections specified in
subdivision (a).
(c) (1) The administrator shall issue regulations consistent with
law as the administrator may deem necessary or advisable in executing
the powers, duties, and responsibilities assigned by this article.
The regulations may include regulations prescribing standards for the
valuation, marketability, and liquidity of the eligible securities
of the class described in subdivision (m) of Section 53651,
regulations prescribing procedures and documentation for adding,
withdrawing, substituting, and holding pooled securities, and
regulations prescribing the form, content, and execution of any
application, report, or other document called for in any of the
sections specified in subdivision (a) or in any regulation or order
issued under any of those sections.
(2) The administrator, for good cause, may waive any provision of
any regulation adopted pursuant to paragraph (1) or any order issued
under this article, where the provision is not necessary in the
public interest.
(d) The administrator may enter into any contracts or agreements
as may be necessary, including joint underwriting agreements, to sell
or liquidate eligible securities securing local agency deposits in
the event of the failure of the depository or if the depository fails
to pay all or part of the deposits of a local agency.
(e) The administrator shall require from every depository a report
certified by the agent of depository listing all securities, and the
market value thereof, which are securing local agency deposits
together with the total deposits then secured by the pool, to
determine whether there is compliance with Section 53652. These
reports may be required whenever deemed necessary by the
administrator, but shall be required at least four times each year at
the times designated by the Comptroller of the Currency for reports
from national banking associations. These reports shall be filed in
the office of the administrator by the depository within 20 business
days of the date the administrator calls for the report.
(f) The administrator may have access to reports of examination
made by the Comptroller of the Currency insofar as the reports relate
to national banking association trust department activities which
are subject to this article.
(g) (1) The administrator shall require the immediate substitution
of an eligible security, where the substitution is necessary for
compliance with Section 53652, if (i) the administrator determines
that a security listed in Section 53651 is not qualified to secure
public deposits, or (ii) a treasurer, who has deposits secured by the
securities pool, provides written notice to the administrator and
the administrator confirms that a security in the pool is not
qualified to secure public deposits.
(2) The failure of a depository to substitute securities, where
the administrator has required the substitution, shall be reported by
the administrator promptly to those treasurers having money on
deposit in that depository and, in addition, shall be reported as
follows:
(A) When that depository is a national bank, to the Comptroller of
the Currency of the United States.
(B) When that depository is a state bank, to the Commissioner of
Financial Institutions. Business Oversight.
(C) When that depository is a federal association, to the Office
of Thrift Supervision. the Comptroller of the
Currency.
(D) When that depository is a savings association, to the
Commissioner of Financial Institutions.
Business Oversight.
(E) When that depository is a federal credit union, to the
National Credit Union Administration.
(F) When that depository is a state credit union or a federally
insured industrial loan company, to the Commissioner of
Financial Institutions. Business Oversight.
(h) The administrator may require from each treasurer a
registration report and at appropriate times a report stating the
amount and location of each deposit together with other information
deemed necessary by the administrator for effective operation of this
article. The facts recited in any report from a treasurer to the
administrator are conclusively presumed to be true for the single
purpose of the administrator fulfilling responsibilities assigned to
him or her by this article and for no other purpose.
(i) (1) If, after notice and opportunity for hearing, the
administrator finds that any depository or agent of depository has
violated or is violating, or that there is reasonable cause to
believe that any depository or agent of depository is about to
violate, any of the sections specified in subdivision (a) or any
regulation or order issued under any of those sections, the
administrator may order the depository or agent of depository to
cease and desist from the violation or may by order suspend or revoke
the authorization of the agent of depository. The order may require
the depository or agent of depository to take affirmative action to
correct any condition resulting from the violation.
(2) (A) If the administrator makes any of the findings set forth
in paragraph (1) with respect to any depository or agent of
depository and, in addition, finds that the violation or the
continuation of the violation is likely to seriously prejudice the
interests of treasurers, the administrator may order the depository
or agent of depository to cease and desist from the violation or may
suspend or revoke the authorization of the agent of depository. The
order may require the depository or agent of depository to take
affirmative action to correct any condition resulting from the
violation.
(B) Within five business days after an order is issued under
subparagraph (A), the depository or agent of depository may file with
the administrator an application for a hearing on the order. The
administrator shall schedule a hearing at least 30 days, but not more
than 40 days, after receipt of an application for a hearing or
within a shorter or longer period of time agreed to by a depository
or an agent of depository. If the administrator fails to schedule the
hearing within the specified or agreed to time period, the order
shall be deemed rescinded. Within 30 days after the hearing, the
administrator shall affirm, modify, or rescind the order; otherwise,
the order shall be deemed rescinded. The right of a depository or
agent of depository to which an order is issued under subparagraph
(A) to petition for judicial review of the order shall not be
affected by the failure of the depository or agent of depository to
apply to the administrator for a hearing on the order pursuant to
this subparagraph.
(3) Whenever the administrator issues a cease and desist order
under paragraph (1) or (2), the administrator may in the order
restrict the right of the depository to withdraw securities from a
security pool; and, in that event, both the depository to which the
order is directed and the agent of depository which holds the
security pool shall comply with the restriction.
(4) In case the administrator issues an order under paragraph (1)
or (2) suspending or revoking the authorization of an agent of
depository, the administrator may order the agent of depository at
its own expense to transfer all pooled securities held by it to such
agent of depository as the administrator may designate in the order.
The agent of depository designated in the order shall accept and hold
the pooled securities in accordance with this article and
regulations and orders issued under this article.
(j) In the discretion of the administrator, whenever it appears to
the administrator that any person has violated or is violating, or
that there is reasonable cause to believe that any person is about to
violate, any of the sections specified in subdivision (a) or any
regulation or order issued thereunder, the administrator may bring an
action in the name of the people of the State of California in the
superior court to enjoin the violation or to enforce compliance with
those sections or any regulation or order issued thereunder. Upon a
proper showing a permanent or preliminary injunction, restraining
order, or writ of mandate shall be granted, and the court may not
require the administrator to post a bond.
(k) In addition to other remedies, the administrator shall have
the power and authority to impose the following sanctions for
noncompliance with the sections specified in subdivision (a) after a
hearing if requested by the party deemed in noncompliance. Any fine
assessed pursuant to this subdivision shall be paid within 30 days
after receipt of the assessment.
(1) Assess against and collect from a depository a fine not to
exceed two hundred fifty dollars ($250) for each day the depository
fails to maintain with the agent of depository securities as required
by Section 53652.
(2) Assess against and collect from a depository a fine not to
exceed one hundred dollars ($100) for each day beyond the time period
specified in subdivision (b) of Section 53663 the depository
negligently or willfully fails to file in the office of the
administrator a written report required by that section.
(3) Assess against and collect from a depository a fine not to
exceed one hundred dollars ($100) for each day beyond the time period
specified in subdivision (e) that a depository negligently or
willfully fails to file in the office of the administrator a written
report required by that subdivision.
(4) Assess and collect from an agent of depository a fine not to
exceed one hundred dollars ($100) for each day the agent of
depository fails to comply with any of the applicable sections
specified in subdivision (a) or any applicable regulation or order
issued thereunder.
( l ) (1) In the event that a depository or agent of
depository fails to pay a fine assessed by the administrator pursuant
to subdivision (k) within 30 days of receipt of the assessment, the
administrator may assess and collect an additional penalty of 5
percent of the fine for each month or part thereof that the payment
is delinquent.
(2) If a depository fails to pay the fines or penalties assessed
by the administrator, the administrator may notify local agency
treasurers with deposits in the depository.
(3) If an agent of depository fails to pay the fines or penalties
assessed by the administrator, the administrator may notify local
agency treasurers who have authorized the agent of depository as
provided in Sections 53649 and 53656, and may by order revoke the
authorization of the agent of depository as provided in subdivision
(i).
(m) The amendments to this section enacted by the Legislature
during the 1999-2000 Regular Session shall become operative on
January 1, 2001.
SEC. 104. Section 65040.12 of the
Government Code is amended to read:
65040.12. (a) The office shall be the coordinating agency in
state government for environmental justice programs.
(b) The director shall do all of the following:
(1) Consult with the Secretaries of the
California Environmental Protection Agency, the Resources
Agency, Protection, National Resources,
Transportation, and the Business,
Transportation Consumer Services, and
Housing Agency, Housing, the Working Group on
Environmental Justice established pursuant to Section 72002
71113 of the Public Resources Code, any other
appropriate state agencies, and all other interested members of the
public and private sectors in this state.
(2) Coordinate the office's efforts and share information
regarding environmental justice programs with the Council on
Environmental Quality, the United States Environmental Protection
Agency, the General Accounting Office, the Office of Management and
Budget, and other federal agencies.
(3) Review and evaluate any information from federal agencies that
is obtained as a result of their respective regulatory activities
under federal Executive Order 12898, and from the Working Group on
Environmental Justice established pursuant to Section 72002
71113 of the Public Resources Code.
(c) When it adopts its next edition of the general plan guidelines
pursuant to Section 65040.2, but in no case later than July 1, 2003,
the office shall include guidelines for addressing environmental
justice matters in city and county general plans. The office shall
hold at least one public hearing prior to the release of any draft
guidelines, and at least one public hearing after the release of the
draft guidelines. The hearings may be held at the regular meetings of
the Planning Advisory and Assistance Council.
(d) The guidelines developed by the office pursuant to subdivision
(c) shall recommend provisions for general plans to do all of the
following:
(1) Propose methods for planning for the equitable distribution of
new public facilities and services that increase and enhance
community quality of life throughout the community, given the fiscal
and legal constraints that restrict the siting of these facilities.
(2) Propose methods for providing for the location, if any, of
industrial facilities and uses that, even with the best available
technology, will contain or produce material that, because of its
quantity, concentration, or physical or chemical characteristics,
poses a significant hazard to human health and safety, in a manner
that seeks to avoid over-concentrating these uses in proximity to
schools or residential dwellings.
(3) Propose methods for providing for the location of new schools
and residential dwellings in a manner that seeks to avoid locating
these uses in proximity to industrial facilities and uses that will
contain or produce material that because of its quantity,
concentration, or physical or chemical characteristics, poses a
significant hazard to human health and safety.
(4) Propose methods for promoting more livable communities by
expanding opportunities for transit-oriented development so that
residents minimize traffic and pollution impacts from traveling for
purposes of work, shopping, schools, and recreation.
(e) For the purposes of this section, "environmental justice"
means the fair treatment of people of all races, cultures, and
incomes with respect to the development, adoption, implementation,
and enforcement of environmental laws, regulations, and policies.
SEC. 105. Section 71.4 of the Harbors
and Navigation Code is amended to read:
71.4. (a) (1) The department, division,
subject to the approval of the Legislature in accordance with
Section 85.2, may make loans to qualified cities, counties, or
districts having power to acquire, construct, and operate small craft
harbors, for the design, planning, acquisition, construction,
improvement, maintenance, or operation of small craft harbors and
facilities in connection with the harbors, and connecting waterways,
if the department division finds that
the project is feasible.
(2) The minimum annual rate of interest charged by the
department division for a loan shall be set
annually by the commission division and
shall be based on the Pooled Money Investment Account interest rate.
(b) The department division shall
establish, by rules and regulations, policies and standards to be
followed in making loans pursuant to this section so as to further
the proper development and maintenance of a statewide system of small
craft harbors and connecting waterways. To the greatest extent
possible, the department division shall
adhere to customary commercial practices to ensure that loans made
pursuant to this section are adequately secured and that the loans
are repaid consistent with the terms of the loan agreement. Any rules
and regulations shall include policies and standards for restrooms,
vessel pumpout facilities, oil recycling facilities, and receptacles
for the purpose of separating, reusing, or recycling all solid waste
materials.
(c) The department division shall
develop weighing and ranking criteria to qualify and prioritize the
public loans.
(d) A loan under this section shall be repaid as provided in
Section 70.
(e) Rates to be charged for the use of the boating facilities
shall be established by the city, county, or district, subject to the
approval of the department, division,
in every loan contract. The department
division shall concern itself with the rates charged only as
prescribed in Section 71.8. The rates set shall be based on a monthly
berthing charge, and the department division
shall monitor these rates to ensure that the berthing charges
are sufficient to ensure timely and complete repayment of the loan.
(f) The department division shall
submit any project for which it recommends any loan be made to the
Governor for inclusion in the Budget Bill.
(g) The department division may
restate an existing loan under this article, upon written request by
the borrower, and upon approval by the commission.
borrower.
SEC. 106. Section 71.7 of the Harbors
and Navigation Code is amended to read:
71.7. Notwithstanding any other provision of this chapter,
Section 82, or any contract or agreement to the contrary, loan
payments on the loan on behalf of Spud Point Marina in the County of
Sonoma, as authorized by Schedule (b)(8) of Item 3680-101-516 of
Section 2.00 of the Budget Act of 1982, and administered by the
department, division, may be
renegotiated by the department division
and the County of Sonoma, with the advice and consent of
the commission, to solve the fiscal problems involving the
marina existing on the effective date of this section as enacted
during the 1994 portion of the 1993-94 Regular Session.
SEC. 107. Section 72.6 of the Harbors
and Navigation Code is amended to read:
72.6. Transfers pursuant to Section 70, loans pursuant to Section
71.4, and grants pursuant to Section 72.5 shall be made by the
department division with the advice
and consent of the commission.
SEC. 108. Section 76.5 of the Harbors
and Navigation Code is amended to read:
76.5. In processing applications under this article, the
department division shall give priority to
applications from qualified private marina owners who have not
received previous loans from the department. If the department finds
a proposed loan project is feasible, the loan request shall be
submitted to the commission for its advice and consent.
advice.
SEC. 109. Section 76.6 of the Harbors
and Navigation Code is amended to read:
76.6. Loans made under this article shall include, but are not
limited to, the following terms and conditions:
(a) The minimum annual rate of interest charged by the
department division for a loan shall be set
annually by the commission division and
shall be a rate equal to 1 percent per annum plus the prime or base
rate of interest.
(b) The department division shall
require collateral in a minimum amount of 110 percent of the loan.
(c) The repayment period of a loan shall not exceed 20 years, or
be longer than the length of the borrower's leasehold estate,
including renewal options, if the loan is based upon a leasehold
estate of the borrower.
(d) All loans shall amortize the principal over the term of the
loan. However, a loan shall become due and payable in full if the
borrower sells or otherwise transfers the recreational marina
developed with departmental divisional
funds, unless the transfer is, by reason of the death of the
borrower, to the borrower's heirs.
(e) The department's division's
loans shall not be subordinated to any future loans obtained by a
private marina owner, except in those cases involving loans acquired
for refinancing previous senior loans.
(f) The department division may
allow assumption of loans from the original borrower by future
parties, subject to completion of the application process and upon
approval by the department and the commission.
division.
(g) The department division may,
upon written request by the borrower, and upon the approval
of the commission, restate an existing loan.
SEC. 110. Section 82 of the Harbors and
Navigation Code , as added by Section 2 of Chapter 136 of
the Statutes of 2012, is amended to read:
82. The division, consistent with Section 82.3, and in
furtherance of the public interest and in accordance therewith, shall
have only the following duties with respect to the commission:
(a) To submit any proposed changes in regulations pertaining to
boating functions and responsibilities of the division to the
commission for its advice and comment prior to enactment of changes.
(b) To submit proposals for transfers pursuant to Section 70,
loans pursuant to Section 71.4 or 76.3, and grants pursuant to
Section 72.5 to the commission for its advice and comment.
(c) To submit any proposed project for which it is
considering approving making a determination
of eligibility for funding from the Harbors and Watercraft Revolving
Fund to the commission if that project could have a potentially
significant impact on either public health or safety, public access,
or the environment for the commission's advice and comment prior to
approval by the division. making that
determination.
(d) To annually submit a report on its budget and expenditures to
the commission for its advice and comment.
(e) To cause studies and surveys to be made of the need for small
craft harbors and connecting waterways throughout the state and the
most suitable sites therefore, and submit those studies and surveys
to the commission for advice and comment.
SEC. 111. Section 82.3 of the Harbors
and Navigation Code is amended to read:
82.3. The commission shall have the following particular duties
and responsibilities:
(a) To be fully informed regarding all governmental activities
affecting programs administered by the division.
(b) To meet at least four times per year at various locations
throughout the state to receive comments on the implementation of the
programs administered by the division and establish an annual
calendar of proposed meetings at the beginning of each calendar year.
The meetings shall include a public meeting, before the beginning of
each funding cycle of a loan and grant program
cycle, funded from the Harbors and Watercraft
Revolving Fund, to collect public input concerning the program,
recommendations for program improvements, and specific project needs
for the system.
(c) To hold a public hearing to receive public comment regarding
any proposed project subject to subdivision (c) of Section 82 at a
location in close geographic proximity to the proposed project,
unless a hearing consistent with federal law or regulation has
already been held regarding the project.
(d) To consider, upon the request of any owner or tenant whose
property is in the vicinity of any proposed project subject to
subdivision (c) of Section 82, any alleged adverse impacts occurring
on that person's property from activities undertaken pursuant to this
code, and recommend to the division suitable measures for the
prevention of any adverse impacts determined by the commission to be
occurring, and suitable measures for the restoration of adversely
impacted property.
(e) To review and comment annually to the division on the proposed
budget of expenditures from the revolving fund.
(f) To review all plans proposals
for new and expanded local and regional waterways,
piers, harbors, docks, or other recreational areas that have applied
for grant or loan funds from the division prior to approval
a final determination of eligibility by the
division.
(g) (1) With support and assistance from the division, to prepare
and submit a program report to the Governor, the Assembly Committee
on Water, Parks and Wildlife, the Senate Committee on Natural
Resources and Water, the Senate Committee on Appropriations, and the
Assembly Committee on Appropriations on or before January 1, 2013,
and every three years thereafter. The report shall be adopted by the
commission after discussing the contents during two or more public
meetings. The report shall address the status of any regulations
adopted or being considered by the division,
division and any loan or grant that has been or is being
considered for approval a determination of
eligibility by the division pending the previous
report, and a summary of resource monitoring data compiled and
restoration work completed. report.
(2) A report required to be submitted pursuant to paragraph (1)
shall be submitted in compliance with Section 9795 of the Government
Code.
SEC. 112. Section 40448.6 of the Health
and Safety Code is amended to read:
40448.6. The Legislature hereby finds and declares all of the
following:
(a) It is necessary to increase the availability of financial
assistance to small businesses that are subject to the rules and
regulations of the south coast district, in order to minimize
economic dislocation and adverse socioeconomic impacts.
(b) It is in the public interest that a portion of the funds
collected by the south coast district from violators of air pollution
regulations be allocated for the purpose of guaranteeing or
otherwise reducing the financial risks of providing financial
assistance to small businesses which face increased borrowing
requirements in order to comply with air pollution control
requirements.
(c) Public agencies and private lenders have a variety of methods
available for providing financing assistance to small businesses and
other employers, including taxable bonds, composite or pooled
financing instruments, loan guarantees, and credit insurance, which
could be utilized in combination with the penalties collected by the
south coast district to expand the availability and reduce the cost
of financing assistance.
(d) The California Pollution Control Financing Authority has funds
set aside from previous bond issues, which could be used to
guarantee the issuance of bonds or other financing for small
businesses for the purchase and installation of pollution control
equipment.
(e) The Business, Transportation Governor'
s Office of Business and Housing Agency,
Economic Development, through the small business financial
development corporations established pursuant to Chapter 1
(commencing with Section 14000) of Part 5 of Division 3 of Title 1 of
the Corporations Code, has the ability to provide state loan
guarantees and technical assistance to small businesses needing
financial assistance.
(f) The Job Training Partnership Division of the Employment
Development Department makes funds available for job training
programs, including funds for dislocated workers, through the federal
Job Training Partnership Act (29 U.S.C. Sec. 1501 et seq.).
(g) It is the policy of the state that the Job Training
Partnership Division of the Employment Development Department, in
cooperation with the districts and the state board, are encouraged to
provide job training programs for workers who, as determined by the
department or the local private industry council, have been laid off
or dislocated as a result of actions resulting from air quality
regulations.
(h) It is the policy of the state that the California Pollution
Control Financing Authority and other state agencies implementing
small business assistance programs, in cooperation with the districts
and the state board, are encouraged to provide technical and
financial assistance to small businesses to facilitate compliance
with air quality regulations.
SEC. 113. Section 44272 of the
Health and Safety Code is amended to read:
44272. (a) The Alternative and Renewable Fuel and Vehicle
Technology Program is hereby created. The program shall be
administered by the commission. The commission shall implement the
program by regulation pursuant to the requirements of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code. The program shall provide, upon appropriation
by the Legislature, competitive grants, revolving loans, loan
guarantees, loans, or other appropriate funding measures, to public
agencies, vehicle and technology entities, businesses and projects,
public-private partnerships, workforce training partnerships and
collaboratives, fleet owners, consumers, recreational boaters, and
academic institutions to develop and deploy innovative technologies
that transform California's fuel and vehicle types to help attain the
state's climate change policies. The emphasis of this program shall
be to develop and deploy technology and alternative and renewable
fuels in the marketplace, without adopting any one preferred fuel or
technology.
(b) A project that receives more than seventy-five thousand
dollars ($75,000) in funds from the commission shall be approved at a
noticed public meeting of the commission and shall be consistent
with the priorities established by the investment plan adopted
pursuant to Section 44272.5. Under this article, the commission may
delegate to the commission's executive director, or his or her
designee, the authority to approve either of the following:
(1) A contract, grant, loan, or other agreement or award that
receives seventy-five thousand dollars ($75,000) or less in funds
from the commission.
(2) Amendments to a contract, grant, loan, or other agreement or
award as long as the amendments do not increase the amount of the
award, change the scope of the project, or modify the purpose of the
agreement.
(c) The commission shall provide preferences to those projects
that maximize the goals of the Alternative and Renewable Fuel and
Vehicle Technology Program, based on the following criteria, as
applicable:
(1) The project's ability to provide a measurable transition from
the nearly exclusive use of petroleum fuels to a diverse portfolio of
viable alternative fuels that meet petroleum reduction and
alternative fuel use goals.
(2) The project's consistency with existing and future state
climate change policy and low-carbon fuel standards.
(3) The project's ability to reduce criteria air pollutants and
air toxics and reduce or avoid multimedia environmental impacts.
(4) The project's ability to decrease, on a life cycle basis, the
discharge of water pollutants or any other substances known to damage
human health or the environment, in comparison to the production and
use of California Phase 2 Reformulated Gasoline or diesel fuel
produced and sold pursuant to California diesel fuel regulations set
forth in Article 2 (commencing with Section 2280) of Chapter 5 of
Division 3 of Title 13 of the California Code of Regulations.
(5) The project does not adversely impact the sustainability of
the state's natural resources, especially state and federal lands.
(6) The project provides nonstate matching funds. Costs incurred
from the date a proposed award is noticed may be counted as nonstate
matching funds. The commission may adopt further requirements for the
purposes of this paragraph. The commission is not liable for costs
incurred pursuant to this paragraph if the commission does not give
final approval for the project or the proposed recipient does not
meet requirements adopted by the commission pursuant to this
paragraph.
(7) The project provides economic benefits for California by
promoting California-based technology firms, jobs, and businesses.
(8) The project uses existing or proposed fueling infrastructure
to maximize the outcome of the project.
(9) The project's ability to reduce on a life cycle assessment
greenhouse gas emissions by at least 10 percent, and higher
percentages in the future, from current reformulated gasoline and
diesel fuel standards established by the state board.
(10) The project's use of alternative fuel blends of at least 20
percent, and higher blend ratios in the future, with a preference for
projects with higher blends.
(11) The project drives new technology advancement for vehicles,
vessels, engines, and other equipment, and promotes the deployment of
that technology in the marketplace.
(d) Only the following shall be eligible for funding:
(1) Alternative and renewable fuel projects to develop and improve
alternative and renewable low-carbon fuels, including electricity,
ethanol, dimethyl ether, renewable diesel, natural gas, hydrogen, and
biomethane, among others, and their feedstocks that have high
potential for long-term or short-term commercialization, including
projects that lead to sustainable feedstocks.
(2) Demonstration and deployment projects that optimize
alternative and renewable fuels for existing and developing engine
technologies.
(3) Projects to produce alternative and renewable low-carbon fuels
in California.
(4) Projects to decrease the overall impact of an alternative and
renewable fuel's life cycle carbon footprint and increase
sustainability.
(5) Alternative and renewable fuel infrastructure, fueling
stations, and equipment. The preference in paragraph (10) of
subdivision (c) shall not apply to renewable diesel or biodiesel
infrastructure, fueling stations, and equipment used solely for
renewable diesel or biodiesel fuel.
(6) Projects to develop and improve light-, medium-, and
heavy-duty vehicle technologies that provide for better fuel
efficiency and lower greenhouse gas emissions, alternative fuel usage
and storage, or emission reductions, including propulsion systems,
advanced internal combustion engines with a 40 percent or better
efficiency level over the current market standard, light-weight
materials, energy storage, control systems and system integration,
physical measurement and metering systems and software, development
of design standards and testing and certification protocols, battery
recycling and reuse, engine and fuel optimization electronic and
electrified components, hybrid technology, plug-in hybrid technology,
battery electric vehicle technology, fuel cell technology, and
conversions of hybrid technology to plug-in technology through the
installation of safety certified supplemental battery modules.
(7) Programs and projects that accelerate the commercialization of
vehicles and alternative and renewable fuels including buy-down
programs through near-market and market-path deployments, advanced
technology warranty or replacement insurance, development of market
niches, supply-chain development, and research related to the
pedestrian safety impacts of vehicle technologies and alternative and
renewable fuels.
(8) Programs and projects to retrofit medium- and heavy-duty
on-road and nonroad vehicle fleets with technologies that create
higher fuel efficiencies, including alternative and renewable fuel
vehicles and technologies, idle management technology, and
aerodynamic retrofits that decrease fuel consumption.
(9) Infrastructure projects that promote alternative and renewable
fuel infrastructure development connected with existing fleets,
public transit, and existing transportation corridors, including
physical measurement or metering equipment and truck stop
electrification.
(10) Workforce training programs related to alternative and
renewable fuel feedstock production and extraction, renewable fuel
production, distribution, transport, and storage, high-performance
and low-emission vehicle technology and high tower electronics,
automotive computer systems, mass transit fleet conversion,
servicing, and maintenance, and other sectors or occupations related
to the purposes of this chapter.
(11) Block grants or incentive programs administered by public
entities or not-for-profit technology entities for multiple projects,
education and program promotion within California, and development
of alternative and renewable fuel and vehicle technology centers. The
commission may adopt guidelines for implementing the block grant or
incentive program, which shall be approved at a noticed public
meeting of the commission.
(12) Life cycle and multimedia analyses, sustainability and
environmental impact evaluations, and market, financial, and
technology assessments performed by a state agency to determine the
impacts of increasing the use of low-carbon transportation fuels and
technologies, and to assist in the preparation of the investment plan
and program implementation.
(13) A program to provide funding for homeowners who purchase a
plug-in electric vehicle to offset costs associated with modifying
electrical sources to include a residential plug-in electric vehicle
charging station. In establishing this program, the commission shall
consider funding criteria to maximize the public benefit of the
program.
(e) The commission may make a single source or sole source award
pursuant to this section for applied research. The same requirements
set forth in Section 25620.5 of the Public Resources Code shall apply
to awards made on a single source basis or a sole source basis. This
subdivision does not authorize the commission to make a single
source or sole source award for a project or activity other than for
applied research.
(f) The commission may do all of the following:
(1) Contract with the Treasurer to expend funds through programs
implemented by the Treasurer, if the expenditure is consistent with
all of the requirements of this article and Article 1 (commencing
with Section 44270).
(2) Contract with small business financial development
corporations established by the Business, Transportation
Governor's Office of Business and
Housing Agency Economic Development to expend
funds through the Small Business Loan Guarantee Program if the
expenditure is consistent with all of the requirements of this
article and Article 1 (commencing with Section 44270).
(3) Advance funds, pursuant to an agreement with the commission,
to any of the following:
(A) A public entity.
(B) A recipient to enable it to make advance payments to a public
entity that is a subrecipient of the funds and under a binding and
enforceable subagreement with the recipient.
(C) An administrator of a block grant program.
SEC. 114. Section 326.3 of the Penal
Code is amended to read:
326.3. (a) The Legislature finds and declares all of the
following:
(1) Nonprofit organizations provide important and essential
educational, philanthropic, and social services to the people of the
State of California.
(2) One of the great strengths of California is a vibrant
nonprofit sector.
(3) Nonprofit and philanthropic organizations touch the lives of
every Californian through service and employment.
(4) Many of these services would not be available if nonprofit
organizations did not provide them.
(5) There is a need to provide methods of fundraising to nonprofit
organizations to enable them to provide these essential services.
(6) Historically, many nonprofit organizations have used
charitable bingo as one of their key fundraising strategies to
promote the mission of the charity.
(7) Legislation is needed to provide greater revenues for
nonprofit organizations to enable them to fulfill their charitable
purposes, and especially to meet their increasing social service
obligations.
(8) Legislation is also needed to clarify that existing law
requires that all charitable bingo must be played using a tangible
card and that the only permissible electronic devices to be used by
charitable bingo players are card-minding devices.
(b) Neither the prohibition on gambling in this chapter nor in
Chapter 10 (commencing with Section 330) applies to any remote caller
bingo game that is played or conducted in a city, county, or city
and county pursuant to an ordinance enacted under Section 19 of
Article IV of the California Constitution, if the ordinance allows a
remote caller bingo game to be played or conducted only in accordance
with this section, including the following requirements:
(1) The game may be conducted only by the following organizations:
(A) An organization that is exempted from the payment of the taxes
imposed under the Corporation Tax Law by Section 23701a, 23701b,
23701d, 23701e, 23701f, 23701g, 23701k, 23701 l , or
23701w of the Revenue and Taxation Code.
(B) A mobilehome park association.
(C) A senior citizens organization.
(D) Charitable organizations affiliated with a school district.
(2) The organization conducting the game shall have been
incorporated or in existence for three years or more.
(3) The organization conducting the game shall be licensed
pursuant to subdivision (l) of Section 326.5.
(4) The receipts of the game shall be used only for charitable
purposes. The organization conducting the game shall determine the
disbursement of the net receipts of the game.
(5) The operation of bingo may not be the primary purpose for
which the organization is organized.
(c) (1) A city, county, or city and county may adopt an ordinance
in substantially the following form to authorize remote caller bingo
in accordance with the requirements of subdivision (b):
Sec. _.01. Legislative Authorization.
This chapter is adopted pursuant to Section 19 of Article IV of
the California Constitution, as implemented by Sections 326.3 and
326.4 of the Penal Code.
Sec. _.02. Remote Caller Bingo Authorized.
Remote Caller Bingo may be lawfully played in the City,
County, or City and County] pursuant to the provisions of Sections
326.3 and 326.4 of the Penal Code, and this chapter, and not
otherwise.
Sec. _.03. Qualified Applicants: Applicants for Licensure.
(a) The following organizations are qualified to apply to the
License Official for a license to operate a bingo game if the
receipts of those games are used only for charitable purposes:
(1) An organization exempt from the payment of the taxes imposed
under the Corporation Tax Law by Section 23701a, 23701b, 23701d,
23701e, 23701f, 23701g, 23701k, 23701 l , or 23701w of the
Revenue and Taxation Code.
(2) A mobile home park association of a mobile home park that is
situated in the City, County, or City and County].
(3) Senior citizen organizations.
(4) Charitable organizations affiliated with a school district.
(b) The application shall be in a form prescribed by the License
Official and shall be accompanied by a nonrefundable filing fee in an
amount determined by resolution of the Governing Body of the City,
County, or City and County] from time to time. The following
documentation shall be attached to the application, as applicable:
(1) A certificate issued by the Franchise Tax Board certifying
that the applicant is exempt from the payment of the taxes imposed
under the Corporation Tax Law pursuant to Section 23701a, 23701b,
23701d, 23701e, 23701f, 23701g, 23701k, 23701 l , or
23701w of the Revenue and Taxation Code. In lieu of a certificate
issued by the Franchise Tax Board, the License Official may refer to
the Franchise Tax Board's Internet Web site to verify that the
applicant is exempt from the payment of the taxes imposed under the
Corporation Tax Law.
(2) Other evidence as the License Official determines is necessary
to verify that the applicant is a duly organized mobile home park
association of a mobile home park situated in the City, County, or
City and County].
Sec. _.04. License Application: Verification.
The license shall not be issued until the License Official has
verified the facts stated in the application and determined that the
applicant is qualified.
Sec. _.05. Annual Licenses.
A license issued pursuant to this chapter shall be valid until the
end of the calendar year, at which time the license shall expire. A
new license shall only be obtained upon filing a new application and
payment of the license fee. The fact that a license has been issued
to an applicant creates no vested right on the part of the licensee
to continue to offer bingo for play. The Governing Body of the City,
County, or City and County] expressly reserves the right to amend or
repeal this chapter at any time by resolution. If this chapter is
repealed, all licenses issued pursuant to this chapter shall cease to
be effective for any purpose on the effective date of the repealing
resolution.
Sec. _.06. Conditions of Licensure.
(a) Any license issued pursuant to this chapter shall be subject
to the conditions contained in Sections 326.3 and 326.4 of the Penal
Code, and each licensee shall comply with the requirements of those
provisions.
(b) Each license issued pursuant to this chapter shall be subject
to the following additional conditions:
(1) Bingo games shall not be conducted by any licensee on more
than two days during any week, except that a licensee may hold one
additional game, at its election, in each calendar quarter.
(2) The licensed organization is responsible for ensuring that the
conditions of this chapter and Sections 326.3 and 326.4 of the Penal
Code are complied with by the organization and its officers and
members. A violation of any one or more of those conditions or
provisions shall constitute cause for the revocation of the
organization's license. At the request of the organization, the
Governing Body of the City, County, or City and County] shall hold a
public hearing before revoking any license issued pursuant to this
chapter.
(2)
(3) Nothing in this This
section shall not require a city, county, or city and
county to use this model ordinance in order to authorize remote
caller bingo.
(d)
(c) It is a misdemeanor for any person to receive or
pay a profit, wage, or salary from any remote caller bingo game,
provided that administrative, managerial, technical, financial, and
security personnel employed by the organization conducting the bingo
game may be paid reasonable fees for services rendered from the
revenues of bingo games, as provided in subdivision (m), except that
fees paid under those agreements shall not be determined as a
percentage of receipts or other revenues from, or be dependant on the
outcome of, the game.
(e)
(d) A violation of subdivision (d) shall be punishable
by a fine not to exceed ten thousand dollars ($10,000), which fine
shall be deposited in the general fund of the city, county, or city
and county that enacted the ordinance authorizing the remote caller
bingo game. A violation of any provision of this section, other than
subdivision (d), is a misdemeanor.
(f)
(e) The city, county, or city and county that enacted
the ordinance authorizing the remote caller bingo game, or the
Attorney General, may bring an action to enjoin a violation of this
section.
(g)
(f) No minors shall be allowed to participate in any
remote caller bingo game.
(h)
(g) A remote caller bingo game shall not include any
site that is not located within this state.
(i)
(h) An organization authorized to conduct a remote
caller bingo game pursuant to subdivision (b) shall conduct the game
only on property that is owned or leased by the organization, or the
use of which is donated to the organization. Nothing in this
This subdivision shall not
be construed to require that the property that is owned or
leased by, or the use of which is donated to, the organization be
used or leased exclusively by, or donated exclusively to, that
organization.
(j)
(i) (1) All remote caller bingo games shall be open to
the public, not just to the members of the authorized organization.
(2) No more than 750 players may participate in a remote caller
bingo game in a single location.
(3) If the Governor of California or the President of the United
States declares a state of emergency in response to a natural
disaster or other public catastrophe occurring in California, an
organization authorized to conduct remote caller bingo games may,
while that declaration is in effect, conduct a remote caller bingo
game pursuant to this section with more than 750 participants in a
single venue if the net proceeds of the game, after deduction of
prizes and overhead expenses, are donated to or expended exclusively
for the relief of the victims of the disaster or catastrophe, and the
organization gives the California Gambling Control Commission at
least 10 days' written notice of the intent to conduct that game.
(4) An organization authorized to conduct remote caller bingo
games shall provide the commission department
with at least 30 days' advance written notice of its intent to
conduct a remote caller bingo game. That notice shall include all of
the following:
(A) The legal name of the organization and the address of record
of the agent upon whom legal notice may be served.
(B) The locations of the caller and remote players, whether the
property is owned by the organization or donated, and if donated, by
whom.
(C) The name of the licensed caller and site manager.
(D) The names of administrative, managerial, technical, financial,
and security personnel employed.
(E) The name of the vendor and any person or entity maintaining
the equipment used to operate and transmit the game.
(F) The name of the person designated as having a fiduciary
responsibility for the game pursuant to paragraph (2) of subdivision
(k).
(G) The license numbers of all persons specified in subparagraphs
(A) to (F), inclusive, who are required to be licensed.
(H) A copy of the local ordinance for any city, county, or city
and county in which the game will be played. The commission
department shall post the ordinance on its
Internet Web site.
(k)
(j) (1) A remote caller bingo game shall be operated
and staffed only by members of the authorized organization that
organized it. Those members shall not receive a profit, wage, or
salary from any remote caller bingo game. Only the organization
authorized to conduct a remote caller bingo game shall operate that
game, or participate in the promotion, supervision, or any other
phase of a remote caller bingo game. Subject to the provisions of
subdivision (m), this subdivision shall not preclude the employment
of administrative, managerial, technical, financial, or security
personnel who are not members of the authorized organization at a
location participating in the remote caller bingo game by the
organization conducting the game. Notwithstanding any other provision
of law, exclusive or other agreements between the authorized
organization and other entities or persons to provide services in the
administration, management, or conduct of the game shall not be
considered a violation of the prohibition against holding a legally
cognizable financial interest in the conduct of the remote caller
bingo game by persons or entities other than the charitable
organization, or other entity authorized to conduct the remote caller
bingo games, provided that those persons or entities obtain the
gambling licenses, the key employee licenses, or the work permits
required by, and otherwise comply with, Chapter 5 (commencing with
Section 19800) of Division 8 of the Business and Professions Code.
Fees to be paid under any such agreements shall be reasonable and
shall not be determined as a percentage of receipts or other revenues
from, or be dependent on the outcome of, the game.
(2) An organization that conducts a remote caller bingo game shall
designate a person as having fiduciary responsibility for the game.
( l )
(k) No individual, corporation, partnership, or other
legal entity, except the organization authorized to conduct or
participate in a remote caller bingo game, shall hold a legally
cognizable financial interest in the conduct of such a game.
(m)
(l) An organization authorized to conduct a remote
caller bingo game pursuant to this section shall not have overhead
costs exceeding 20 percent of gross sales, except that the
limitations of this section shall not apply to one-time, nonrecurring
capital acquisitions. For purposes of this subdivision, "overhead
costs" includes, but is not limited to, amounts paid for rent and
equipment leasing and the reasonable fees authorized to be paid to
administrative, managerial, technical, financial, and security
personnel employed by the organization pursuant to subdivision (d).
For the purpose of keeping its overhead costs below 20 percent of
gross sales, an authorized organization may elect to deduct all or a
portion of the fees paid to financial institutions for the use and
processing of credit card sales from the amount of gross revenues
awarded for prizes. In that case, the redirected fees for the use and
processing of credit card sales shall not be included in "overhead
costs" as defined in the California Remote Caller Bingo Act.
Additionally, fees paid to financial institutions for the use and
processing of credit card sales shall not be deducted from the
proceeds retained by the charitable organization.
(n) No
(m) A person shall not
be allowed to participate in a remote caller bingo game unless the
person is physically present at the time and place where the remote
caller bingo game is being conducted. A person shall be deemed to be
physically present at the place where the remote caller bingo game is
being conducted if he or she is present at any of the locations
participating in the remote caller bingo game in accordance with this
section.
(o)
(n) (1) An organization shall not cosponsor a remote
caller bingo game with one or more other organizations unless one of
the following is true:
(A) All of the cosponsors are affiliated under the master charter
or articles and bylaws of a single organization.
(B) All of the cosponsors are affiliated through an organization
described in paragraph (1) of subdivision (b), and have the same
Internal Revenue Service activity code.
(2) Notwithstanding paragraph (1), a maximum of 10 unaffiliated
organizations described in paragraph (1) of subdivision (b) may enter
into an agreement to cosponsor a remote caller game, provided that
the game shall have not more than 10 locations.
(3) An organization shall not conduct remote caller bingo more
than two days per week.
(4) Before sponsoring or operating any game authorized under
paragraph (1) or (2), each of the cosponsoring organizations shall
have entered into a written agreement, a copy of which shall be
provided to the commission, Department of
Justice, setting forth how the expenses and proceeds of the
game are to be allocated among the participating organizations, the
bank accounts into which all receipts are to be deposited and from
which all prizes are to be paid, and how game records are to be
maintained and subjected to annual audit.
(p)
(o) The value of prizes awarded during the conduct of
any remote caller bingo game shall not exceed 37 percent of the gross
receipts for that game. When an authorized organization elects to
deduct fees paid for the use and processing of credit card sales from
the amount of gross revenues for that game awarded for prizes, the
maximum amount of gross revenues that may be awarded for prizes shall
not exceed 37 percent of the gross receipts for that game, less the
amount of redirected fees paid for the use and processing of credit
card sales. Every remote caller bingo game shall be played until a
winner is declared. Progressive prizes are prohibited. The declared
winner of a remote caller bingo game shall provide his or her
identifying information and a mailing address to the onsite manager
of the remote caller bingo
game. Prizes shall be paid only by check; no cash prizes shall be
paid. The organization conducting the remote caller bingo game may
issue a check to the winner at the time of the game, or may send a
check to the declared winner by United States Postal Service
certified mail, return receipt requested. All prize money exceeding
state and federal exemption limits on prize money shall be subject to
income tax reporting and withholding requirements under applicable
state and federal laws and regulations and those reports and
withholding shall be forwarded, within 10 business days, to the
appropriate state or federal agency on behalf of the winner. A report
shall accompany the amount withheld identifying the person on whose
behalf the money is being sent. Any game interrupted by a
transmission failure, electrical outage, or act of God shall be
considered void in the location that was affected. A refund for a
canceled game or games shall be provided to the purchasers.
(q)
(p) (1) The California Gambling Control Commission
shall regulate remote caller bingo, including, but not limited to,
licensure and operation. The commission shall establish reasonable
criteria regulating, and shall require the licensure of, the
following:
(A) Any person who conducts a remote caller bingo game pursuant to
this section, including, but not limited to, an employee, a person
having fiduciary responsibility for a remote caller bingo game, a
site manager, and a bingo caller.
(B) Any person who directly or indirectly manufactures,
distributes, supplies, vends, leases, or otherwise provides supplies,
devices, services, or other equipment designed for use in the
playing of a remote caller bingo game by any nonprofit organization.
(C) Beginning January 31, 2009, or a later date as may be
established by the commission, all persons described in subparagraph
(A) or (B) may submit to the commission a letter of intent to submit
an application for licensure. The letter shall clearly identify the
principal applicant, all categories under which the application will
be filed, and the names of all those particular individuals who are
applying. Each charitable organization shall provide an estimate of
the frequency with which it plans to conduct remote caller bingo
operations, including the number of locations. The letter of intent
may be withdrawn or updated at any time.
(2) (A) The Department of Justice shall conduct background
investigations and conduct field enforcement as it relates to remote
caller bingo consistent with the Gambling Control Act (Chapter 5
(commencing with Section 19800) of Division 8 of the Business and
Professions Code) and as specified in regulations promulgated by the
commission.
(B) Fees to cover background investigation costs shall be paid and
accounted for in accordance with Section 19867 of the Business and
Professions Code.
(3) (A) Every application for a license or approval shall be
accompanied by a nonrefundable fee, the amount of which shall be
adopted by the commission by regulation.
(B) Fees and revenue collected pursuant to this paragraph shall be
deposited in the California Bingo Fund, which is hereby created in
the State Treasury. The funds deposited in the California Bingo Fund
shall be available, upon appropriation by the Legislature, for
expenditure by the commission and the department exclusively for the
support of the commission and department in carrying out their duties
and responsibilities under this section and Section 326.5.
(C) A loan is hereby authorized from the Gambling Control Fund to
the California Bingo Fund on or after January 1, 2009, in an amount
of up to five hundred thousand dollars ($500,000) to fund operating,
personnel, and other startup costs incurred by the commission
relating to this act. Funds from the California Bingo Fund shall be
available to the commission upon appropriation by the Legislature in
the annual Budget Act. The loan shall be subject to all of the
following conditions:
(i) The loan shall be repaid to the Gambling Control Fund as soon
as there is sufficient money in the California Bingo Fund to repay
the amount loaned, but no later than five years after the date of the
loan.
(ii) Interest on the loan shall be paid from the California Bingo
Fund at the rate accruing to moneys in the Pooled Money Investment
Account.
(iii) The terms and conditions of the loan are approved, prior to
the transfer of funds, by the Department of Finance pursuant to
appropriate fiscal standards.
The commission may assess and collect reasonable fees and deposits
as necessary to defray the costs of regulation and oversight.
(r)
(q) The administrative, managerial, technical,
financial, and security personnel employed by an organization that
conducts remote caller bingo games shall apply for, obtain, and
thereafter maintain valid work permits, as defined in Section 19805
of the Business and Professions Code.
(s)
(r) An organization that conducts remote caller bingo
games shall retain records in connection with the remote caller bingo
game for five years.
(t)
(s) (1) All equipment used for remote caller bingo
shall be approved in advance by the California Gambling
Control Commission Department of Justice
pursuant to regulations adopted pursuant to subdivision (r) of
Section 19841 of the Business and Professions Code.
(2) The California Gambling Control Commission
department shall monitor operation of the transmission and
other equipment used for remote caller bingo, and monitor the game.
(u)
(t) (1) As used in this section, "remote caller bingo
game" means a game of bingo, as defined in subdivision (o) of Section
326.5, in which the numbers or symbols on randomly drawn plastic
balls are announced by a natural person present at the site at which
the live game is conducted, and the organization conducting the bingo
game uses audio and video technology to link any of its in-state
facilities for the purpose of transmitting the remote calling of a
live bingo game from a single location to multiple locations owned,
leased, or rented by that organization, or as described in
subdivision (o) of this section. The audio or video technology used
to link the facilities may include cable, Internet, satellite,
broadband, or telephone technology, or any other means of electronic
transmission that ensures the secure, accurate, and simultaneous
transmission of the announcement of numbers or symbols in the game
from the location at which the game is called by a natural person to
the remote location or locations at which players may participate in
the game. The drawing of each ball bearing a number or symbol by the
natural person calling the game shall be visible to all players as
the ball is drawn, including through a simultaneous live video feed
at remote locations at which players may participate in the game.
(2) The caller in the live game must be licensed by the California
Gambling Control Commission. A game may be called by a nonlicensed
caller if the drawing of balls and calling of numbers or symbols by
that person is observed and personally supervised by a licensed
caller.
(3) Remote caller bingo games shall be played using traditional
paper or other tangible bingo cards and daubers, and shall not be
played by using electronic devices, except card-minding devices, as
described in paragraph (1) of subdivision (p) of Section 326.5.
(4) Prior to conducting a remote caller bingo game, the
organization that conducts remote caller bingo shall submit to the
commission Department of Justice the
controls, methodology, and standards of game play, which shall
include, but not be limited to, the equipment used to select bingo
numbers and create or originate cards, control or maintenance,
distribution to participating locations, and distribution to players.
Those controls, methodologies, and standards shall be subject to
prior approval by the commission, department,
provided that the controls shall be deemed approved by the
commission department after 90 days
from the date of submission unless disapproved.
(v)
(u) A location shall not be eligible to participate in
a remote caller bingo game if bingo games are conducted at that
location in violation of Section 326.5 or any regulation adopted by
the commission pursuant to Section 19841 of the Business and
Professions Code, including, but not limited to, a location at which
unlawful electronic devices are used.
(w)
(v) (1) The vendor of the equipment used in a remote
caller bingo game shall have its books and records audited at least
annually by an independent California certified public accountant and
shall submit the results of that audit to the California
Gambling Control Commission department within
120 days after the close of the vendor's fiscal year. In addition,
the California Gambling Control Commission
department may audit the books and records of the vendor at any
time.
(2) An authorized organization that conducts remote caller bingo
games shall provide copies of the records pertaining to those games
to the California Gambling Control Commission
department within 30 days after the end of each calendar
quarter. In addition, those records shall be audited by an
independent California certified public accountant at least annually
and copies of the audit reports shall be provided to the
California Gambling Control Commission department
within 120 days after the close of the organization's fiscal
year. The audit report shall account for the annual amount of fees
paid to financial institutions for the use and processing of credit
card sales by the authorized organization and the amount of fees for
the use and processing of credit card sales redirected from "overhead
costs" and deducted from the amount of gross revenues awarded for
prizes.
(3) The costs of the licensing and audits required by this section
shall be borne by the person or entity required to be licensed or
audited. The audit shall enumerate the receipts for remote caller
bingo, the prizes disbursed, the overhead costs, and the amount
retained by the nonprofit organization. The commission
department may audit the books and records of an
organization that conducts remote caller bingo games at any time.
(4) If, during an audit, the commission
department identifies practices in violation of this section,
the license for the audited entity may be suspended pending review
and hearing before the commission for a final determination.
(5) No Any audit required to be
conducted by the commission department
shall not commence before January 1, 2010.
(x)
(w) (1) The provisions of this section are severable.
If any provision of this section or its application is held invalid,
that invalidity shall not affect other provisions or applications
that can be given effect without the invalid provision or
application.
(2) Notwithstanding paragraph (1), if paragraph (1) or (3) of
subdivision (u), or the application of either of those provisions, is
held invalid, this entire section shall be invalid.
(y)
(x) The commission shall submit a report to the
Legislature, on or before January 1, 2012, on the fundraising
effectiveness and regulation of remote caller bingo, and other
matters that are relevant to the public interest regarding remote
caller bingo.
(z)
(y) The following definitions apply for purposes of
this section:
(1) "Commission" means the California Gambling Control Commission.
(2) "Department" means the Department of Justice.
(2)
(3) "Person" includes a natural person, corporation,
limited liability company, partnership, trust, joint venture,
association, or any other business organization.
SEC. 115. Section 326.5 of the Penal
Code is amended to read:
326.5. (a) Neither the prohibition on gambling in this chapter
nor in Chapter 10 (commencing with Section 330) applies to any bingo
game that is conducted in a city, county, or city and county pursuant
to an ordinance enacted under Section 19 of Article IV of the State
Constitution, if the ordinance allows games to be conducted only in
accordance with this section and only by organizations exempted from
the payment of the bank and corporation tax by Sections 23701a,
23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701w, and 23701
l of the Revenue and Taxation Code and by mobilehome park
associations, senior citizens organizations, and charitable
organizations affiliated with a school district; and if the receipts
of those games are used only for charitable purposes.
(b) It is a misdemeanor for any person to receive or pay a profit,
wage, or salary from any bingo game authorized by Section 19 of
Article IV of the State Constitution. Security personnel employed by
the organization conducting the bingo game may be paid from the
revenues of bingo games, as provided in subdivisions (j) and (k).
(c) A violation of subdivision (b) shall be punishable by a fine
not to exceed ten thousand dollars ($10,000), which fine is deposited
in the general fund of the city, county, or city and county that
enacted the ordinance authorizing the bingo game. A violation of any
provision of this section, other than subdivision (b), is a
misdemeanor.
(d) The city, county, or city and county that enacted the
ordinance authorizing the bingo game may bring an action to enjoin a
violation of this section.
(e) No minors Minors shall not
be allowed to participate in any bingo game.
(f) An organization authorized to conduct bingo games pursuant to
subdivision (a) shall conduct a bingo game only on property owned or
leased by it, or property whose use is donated to the organization,
and which property is used by that organization for an office or for
performance of the purposes for which the organization is organized.
Nothing in this subdivision shall be construed to require that the
property owned or leased by, or whose use is donated to, the
organization be used or leased exclusively by, or donated exclusively
to, that organization.
(g) All bingo games shall be open to the public, not just to the
members of the authorized organization.
(h) A bingo game shall be operated and staffed only by members of
the authorized organization that organized it. Those members shall
not receive a profit, wage, or salary from any bingo game. Only the
organization authorized to conduct a bingo game shall operate such a
game, or participate in the promotion, supervision, or any other
phase of a bingo game. This subdivision does not preclude the
employment of security personnel who are not members of the
authorized organization at a bingo game by the organization
conducting the game.
(i) No Any individual, corporation,
partnership, or other legal entity, except the organization
authorized to conduct a bingo game, shall not hold a
financial interest in the conduct of a bingo game.
(j) With respect to organizations exempt from payment of the bank
and corporation tax by Section 23701d of the Revenue and Taxation
Code, all profits derived from a bingo game shall be kept in a
special fund or account and shall not be commingled with any other
fund or account. Those profits shall be used only for charitable
purposes.
(k) With respect to other organizations authorized to conduct
bingo games pursuant to this section, all proceeds derived from a
bingo game shall be kept in a special fund or account and shall not
be commingled with any other fund or account. Proceeds are the
receipts of bingo games conducted by organizations not within
subdivision (j). Those proceeds shall be used only for charitable
purposes, except as follows:
(1) The proceeds may be used for prizes.
(2) (A) Except as provided in subparagraph (B), a portion of the
proceeds, not to exceed 20 percent of the proceeds before the
deduction for prizes, or two thousand dollars ($2,000) per month,
whichever is less, may be used for the rental of property and for
overhead, including the purchase of bingo equipment, administrative
expenses, security equipment, and security personnel.
(B) For the purposes of bingo games conducted by the Lake Elsinore
Elks Lodge, a portion of the proceeds, not to exceed 20 percent of
the proceeds before the deduction for prizes, or three thousand
dollars ($3,000) per month, whichever is less, may be used for the
rental of property and for overhead, including the purchase of bingo
equipment, administrative expenses, security equipment, and security
personnel. Any amount of the proceeds that is additional to that
permitted under subparagraph (A), up to one thousand dollars
($1,000), shall be used for the purpose of financing the rebuilding
of the facility and the replacement of equipment that was destroyed
by fire in 2007. The exception to subparagraph (A) that is provided
by this subparagraph shall remain in effect only until the cost of
rebuilding the facility is repaid, or January 1, 2019, whichever
occurs first.
(3) The proceeds may be used to pay license fees.
(4) A city, county, or city and county that enacts an ordinance
permitting bingo games may specify in the ordinance that if the
monthly gross receipts from bingo games of an organization within
this subdivision exceed five thousand dollars ($5,000), a minimum
percentage of the proceeds shall be used only for charitable purposes
not relating to the conducting of bingo games and that the balance
shall be used for prizes, rental of property, overhead,
administrative expenses, and payment of license fees. The amount of
proceeds used for rental of property, overhead, and administrative
expenses is subject to the limitations specified in paragraph (2).
( l ) (1) A city, county, or city and county may impose
a license fee on each organization that it authorizes to conduct
bingo games. The fee, whether for the initial license or renewal,
shall not exceed fifty dollars ($50) annually, except as provided in
paragraph (2). If an application for a license is denied, one-half of
any license fee paid shall be refunded to the organization.
(2) In lieu of the license fee permitted under paragraph (1), a
city, county, or city and county may impose a license fee of fifty
dollars ($50) paid upon application. If an application for a license
is denied, one-half of the application fee shall be refunded to the
organization. An additional fee for law enforcement and public safety
costs incurred by the city, county, or city and county that are
directly related to bingo activities may be imposed and shall be
collected monthly by the city, county, or city and county issuing the
license; however, the fee shall not exceed the actual costs incurred
in providing the service.
(m) No A person shall not
be allowed to participate in a bingo game, unless the person is
physically present at the time and place where the bingo game is
being conducted.
(n) The total value of prizes available to be awarded during the
conduct of any bingo games shall not exceed five hundred dollars
($500) in cash or kind, or both, for each separate game which is
held.
(o) As used in this section, "bingo" means a game of chance in
which prizes are awarded on the basis of designated numbers or
symbols that are marked or covered by the player on a tangible card
in the player's possession and that conform to numbers or symbols,
selected at random and announced by a live caller. Notwithstanding
Section 330c, as used in this section, the game of bingo includes
tangible cards having numbers or symbols that are concealed and
preprinted in a manner providing for distribution of prizes.
Electronics or video displays shall not be used in connection with
the game of bingo, except in connection with the caller's drawing of
numbers or symbols and the public display of that drawing, and except
as provided in subdivision (p). The winning cards shall not be known
prior to the game by any person participating in the playing or
operation of the bingo game. All preprinted cards shall bear the
legend, "for sale or use only in a bingo game authorized under
California law and pursuant to local ordinance." Only a covered or
marked tangible card possessed by a player and presented to an
attendant may be used to claim a prize. It is the intention of the
Legislature that bingo as defined in this subdivision applies
exclusively to this section and shall not be applied in the
construction or enforcement of any other provision of law.
(p) (1) Players who are physically present at a bingo game may use
hand-held, portable card-minding devices, as described in this
subdivision, to assist in monitoring the numbers or symbols announced
by a live caller as those numbers or symbols are called in a live
game. Card-minding devices may not be used in connection with any
game where a bingo card may be sold or distributed after the start of
the ball draw for that game. A card-minding device shall do all of
the following:
(A) Be capable of storing in the memory of the device bingo faces
of tangible cards purchased by a player.
(B) Provide a means for bingo players to input manually each
individual number or symbol announced by a live caller.
(C) Compare the numbers or symbols entered by the player to the
bingo faces previously stored in the memory of the device.
(D) Identify winning bingo patterns that exist on the stored bingo
faces.
(2) A card-minding device shall perform no functions involving the
play of the game other than those described in paragraph (1).
Card-minding devices shall not do any of the following:
(A) Be capable of accepting or dispensing any coins, currency, or
other representative of value or on which value has been encoded.
(B) Be capable of monitoring any bingo card face other than the
faces of the tangible bingo card or cards purchased by the player for
that game.
(C) Display or represent the game result through any means,
including, but not limited to, video or mechanical reels or other
slot machine or casino game themes, other than highlighting the
winning numbers or symbols marked or covered on the tangible bingo
cards or giving an audio alert that the player's card has a
prize-winning pattern.
(D) Determine the outcome of any game or be physically or
electronically connected to any component that determines the outcome
of a game or to any other bingo equipment, including, but not
limited to, the ball call station, or to any other card-minding
device. No other player-operated or player-activated electronic or
electromechanical device or equipment is permitted to be used in
connection with a bingo game.
(3) (A) A card-minding device shall be approved in advance by the
commission department as meeting the
requirements of this section and any additional requirements stated
in regulations adopted by the commission. Any proposed material
change to the device, including any change to the software used by
the device, shall be submitted to the commission
department and approved by the commission
department prior to implementation.
(B) In accordance with Chapter 5 (commencing with Section 19800)
of Division 8 of the Business and Professions Code, the commission
shall establish reasonable criteria for, and require the licensure
of, any person that directly or indirectly manufactures, distributes,
supplies, vends, leases, or otherwise provides card-minding devices
or other supplies, equipment, or services related to card-minding
devices designed for use in the playing of bingo games by any
nonprofit organization.
(C) A person or entity that supplies or services any card-minding
device shall meet all licensing requirements established by the
commission in regulations.
(4) The costs of any testing, certification, license, or
determination required by this subdivision shall be borne by the
person or entity seeking it.
(5) On and after January 1, 2010, the commission and the
Department of Justice may inspect all card-minding devices at any
time without notice, and may immediately prohibit the use of any
device that does not comply with the requirements of
made pursuant to subdivision (r) of Section
19841 of the Business and Professions Code. The Department of Justice
may at any time, without notice, impound any device the use of which
has been prohibited by the commission.
(6) The California Gambling Control Commission
Department of Justice shall issue regulations to implement
the requirements of this subdivision
subdivision, and the California Gambling Control
Commission may issue regulations regarding the means by which
the operator of a bingo game, as required by applicable law, may
offer assistance to a player with disabilities in order to enable
that player to participate in a bingo game, provided that the means
of providing that assistance shall not be through any electronic,
electromechanical, or other device or equipment that accepts the
insertion of any coin, currency, token, credit card, or other means
of transmitting value, and does not constitute or is not a part of a
system that constitutes a video lottery terminal, slot machine, or
device prohibited by Chapter 10 (commencing with Section 330).
(7) The following definitions apply for purposes of this
subdivision:
(A) "Commission" means the California Gambling Control Commission.
(B) "Department" means the Department of Justice.
(B)
(C) "Person" includes a natural person, corporation,
limited liability company, partnership, trust, joint venture,
association, or any other business organization.
SEC. 116. Section 25464 of the Public
Resources Code is amended to read:
25464. (a) For purposes of this section, the following
definitions apply:
(1) "Fund" means the Clean and Renewable Energy Business Financing
Revolving Loan Fund.
(2) "Program" means the Clean and Renewable Energy Business
Financing Revolving Loan Program.
(b) (1) The commission may use federal funds available pursuant to
this chapter to implement the Clean and Renewable Energy Business
Financing Revolving Loan Program to provide low interest loans to
California clean and renewable energy manufacturing businesses.
(2) The commission may use other funding sources to leverage loans
awarded under the program.
(c) The commission may work directly with the Business,
Transportation Governor's Office of Business and
Housing Agency, Economic Development,
the Treasurer, or any other state agency, board, commission, or
authority to implement and administer the program, and may contract
for private services as needed to
implement the program.
(d) The commission may collect an application fee from applicants
applying for funding under the program to help offset the costs of
administering the program.
(e) (1) The Clean and Renewable Energy Business Financing
Revolving Loan Fund is hereby established in the State Treasury to
implement the program. The commission is authorized to administer the
fund for this purpose. Notwithstanding Section 13340 of the
Government Code, the money in the fund is continuously appropriated
to the commission, without regard to fiscal years, to implement the
program.
(2) Upon direction by the commission, the Controller shall create
any accounts or subaccounts within the fund that the commission
determines are necessary to facilitate management of the fund.
(3) The Controller shall disburse and receive moneys in the fund
for purposes of the program and as authorized by the commission.
(4) All loans and repayments of loans made pursuant to this
section, including interest payments, penalty payments, and all
interest earning on or accruing to any moneys in the fund, shall be
deposited in the fund and shall be available for the purposes of this
section.
(5) The commission may expend up to 5 percent of moneys in the
fund for its administrative costs to implement the program.
(f) Federal funds available to the commission pursuant to this
chapter shall be transferred to the fund in the loan amounts when
loans are awarded under the program by the commission.
SEC. 117. Section 41136 of the Revenue
and Taxation Code is amended to read:
41136. Funds From the funds in the
State Emergency Telephone Number Account , a minimum of one-half
of 1 percent of the charges for intrastate telephone communications
and VoIP service to which the surcharge applies shall, when
appropriated by the Legislature, be spent solely for the following
purposes:
(a) A minimum of one-half of 1 percent of the charges for
intrastate telephone communications services and VoIP service to
which the surcharge applies, as follows:
(1)
(a) To pay refunds authorized by this part.
(2)
(b) To pay the State Board of Equalization for the cost
of the administration of this part.
(3)
(c) To pay the office
Department of the State Chief Information Officer
Technology for its costs in administration of
the "911" emergency telephone number system.
(4)
(d) To pay bills submitted to the office
Department of the State Chief
Information Officer Technology by service
suppliers or communications equipment companies for the installation
of, and ongoing expenses for, the following communications services
supplied to local agencies in connection with the "911" emergency
phone number system:
(A)
(1) A basic system.
(B)
(2) A basic system with telephone central office
identification.
(C)
(3) A system employing automatic call routing.
(D)
(4) Approved incremental costs.
(5)
(e) To pay claims of local agencies for approved
incremental costs, not previously compensated for by another
governmental agency.
(6)
(f) To pay claims of local agencies for incremental
costs and amounts, not previously compensated for by another
governmental agency, incurred prior to the effective date of this
part, for the installation and ongoing expenses for the following
communication services supplied in connection with the "911"
emergency telephone number system:
(A)
(1) A basic system.
(B)
(2) A basic system with telephone central office
identification.
(C)
(3) A system employing automatic call routing.
(D)
(4) Approved incremental costs. Incremental costs shall
not be allowed unless the costs are concurred in by the
office Department of the State Chief
Information Officer. Technology.
(b) (1) For the purposes of paragraph (5) of subdivision (a), the
term incremental costs shall include a maximum of one-quarter of 1
percent of the charges for intrastate telephone communications
services and VoIP service to which the surcharge applies for a
one-time payment to Primary Public Safety Answering Points for the
cost necessary to recruit and train additional personnel necessary to
accept wireless enhanced "911" calls from within their jurisdiction
routed directly to their call centers.
(2) Funds allocated pursuant to this subdivision shall supplement,
and not supplant, existing funding for these services.
(3) This subdivision shall remain in effect only until December
31, 2011.
SEC. 118. Section 335 of the
Unemployment Insurance Code is amended to read:
335. The department, in consultation and coordination with the
film and movie industry, the Business, Transportation
Governor's Office of Business and
Housing Agency, Economic Development, and the
California Film Commission shall do all of the following, contingent
upon the appropriation of funds in the annual Budget Act for these
specified purposes:
(a) Research and maintain data on the employment and output of the
film industry, including full-time, part-time, contract, and short
duration or single event employees.
(b) Examine the ethnic diversity and representation of minorities
in the entertainment industry.
(c) Determine the overall direct and indirect economic impact of
the film industry.
(d) Monitor film industry employment and activity in other states
and countries that compete with California for film production.
(e) Review the effect that federal and state laws and local
ordinances have on the filmed entertainment industry.
(f) Prepare and release biannually a report to the chairpersons of
the appropriate Senate and Assembly policy committees that details
the information required by this section.
SEC. 119. Section 10200 of the
Unemployment Insurance Code is amended to read:
10200. The Legislature finds and declares the following:
(a) California's economy is being challenged by competition from
other states and overseas. In order to meet this challenge,
California's employers, workers, labor organizations, and government
need to invest in a skilled and productive workforce, and in
developing the skills of frontline workers. For purposes of this
section, "frontline worker" means a worker who directly produces or
delivers goods or services.
The purpose of this chapter is to establish a strategically
designed employment training program to promote a healthy labor
market in a growing, competitive economy that shall fund only
projects that meet the following criteria:
(1) Foster creation of high-wage, high-skilled jobs, or foster
retention of high-wage, high-skilled jobs in manufacturing and other
industries that are threatened by out-of-state and global
competition, including, but not limited to, those industries in which
targeted training resources for California's small and medium-sized
business suppliers will increase the state's competitiveness to
secure federal, private sector, and other nonstate funds. In
addition, provide for retraining contracts in companies that make a
monetary or in-kind contribution to the funded training enhancements.
(2) Encourage industry-based investment in human resources
development that promotes the competitiveness of California industry
through productivity and product quality enhancements.
(3) Result in secure jobs for those who successfully complete
training. All training shall be customized to the specific
requirements of one or more employers or a discrete industry and
shall include general skills that trainees can use in the future.
(4) Supplement, rather than displace, funds available through
existing programs conducted by employers and government-funded
training programs, such as the Workforce Investment Act of 1998 (29
U.S.C. Sec. 2801 et seq.), the Carl D. Perkins Vocational Education
Act (P.L. (Public Law 98-524), CalWORKs
(Chapter 2 (commencing with Section 11200) of Part 3 of Division 9
of the Welfare and Institutions Code), the Enterprise Zone Act
(Chapter 12.8 (commencing with Section 7070) of Division 7 of Title 1
of the Government Code), and the McKinney-Vento Homeless Assistance
Act (42 U.S.C. Sec. 11301 et seq.), the California Community Colleges
Economic Development Program, or apportionment funds allocated to
the community colleges, regional occupational centers and programs,
or other local educational agencies. In addition, it is further the
intention of the Legislature that programs developed pursuant to this
chapter shall not replace, parallel, supplant, compete with, or
duplicate in any way already existing approved apprenticeship
programs.
(b) The Employment Training Panel, in funding projects that meet
the requirements of subdivision (a), shall give funding priority to
those projects that best meet the following goals:
(1) Result in the growth of the California economy by stimulating
exports from the state and the production of goods and services that
would otherwise be imported from outside the state.
(2) Train new employees of firms locating or expanding in the
state that provide high-skilled, high-wage jobs and are committed to
an ongoing investment in the training of frontline workers.
(3) Develop workers with skills that prepare them for the
challenges of a high performance workplace of the future.
(4) Train workers who have been displaced, have received
notification of impending layoff, or are subject to displacement,
because of a plant closure, workforce reduction, changes in
technology, or significantly increasing levels of international and
out-of-state competition.
(5) Are jointly developed by business management and worker
representatives.
(6) Develop career ladders for workers.
(7) Promote the retention and expansion of the state's
manufacturing workforce.
(c) The program established through this chapter is to be
coordinated with all existing employment training programs and
economic development programs, including, but not limited to,
programs such as the Workforce Investment Act of 1998 (29 U.S.C. Sec.
2801 et seq.), the California Community Colleges, the regional
occupational programs, vocational education programs, joint
labor-management training programs, and related programs under the
Employment Development Department and the Governor's Office of
Business and Economic Development, and the Business,
Transportation Consumer Services, and Housing
Agency.
SEC. 120. Section 10202.5 of the
Unemployment Insurance Code is amended to read:
10202.5. (a) The panel shall consist of eight persons, seven of
whom shall be appointed as provided in subdivision (b), and shall
have experience and a demonstrated interest in business management
and employment relations. The Secretary
Director of Business, Transportation
the Governor's Office of Business and Housing,
Economic Development, or his or her designee,
shall also serve on the panel as an ex officio, voting member.
(b) (1) Two members of the panel shall be appointed by the Speaker
of the Assembly. One of those members shall be a private sector
labor representative and the other member shall be a business
representative.
(2) Two members of the panel shall be appointed by the President
pro Tempore of the Senate. One of those members shall be a private
sector labor representative and the other member shall be a business
representative.
(3) Three members of the panel shall be appointed by the Governor.
One of those members shall be a private sector labor representative,
one member shall be a business representative, and one member shall
be a public member.
(4) Labor appointments shall be made from nominations from state
labor federations. Business appointments shall be made from
nominations from state business organizations and business trade
associations.
(5) The Governor shall designate a member to chair the panel, and
the person so designated shall serve as the chair of the panel at the
pleasure of the Governor.
(c) The appointive members of the panel shall serve for two-year
terms.
(d) Appointive members of the panel shall receive the necessary
traveling and other expenses incurred by them in the performance of
their official duties out of appropriations made for the support of
the panel. In addition, each appointive member of the panel shall
receive one hundred dollars ($100) for each day attending meetings of
the panel, and may receive one hundred dollars ($100) for each day
spent conducting other official business of the panel, but not
exceeding a maximum of three hundred dollars ($300) per month.
SEC. 121. Section 15002 of the
Unemployment Insurance Code is amended to read:
15002. (a) The California Workforce Investment Board (CWIB) shall
establish a special committee known as the Green Collar Jobs Council
(GCJC), comprised of the appropriate representatives from the CWIB
existing membership, including the K-12 representative, the
California Community Colleges representative, the Business,
Transportation Governor's Office of Business and
Housing Agency Economic Development
representative, the Employment Development Department representative,
and other appropriate members. The GCJC may consult with other state
agencies, other higher education representatives, local workforce
investment boards, and industry representatives as well as
philanthropic, nongovernmental, and environmental groups, as
appropriate, in the development of a strategic initiative. To the
extent private funds are available, is the intent of the Legislature
that the GCJC will develop an annual award for outstanding
achievement for workforce training programs operated by local or
state agencies, businesses, or nongovernment organizations to be
named after Parrish R. Collins.
(b) As part of the strategic initiative, the GCJC shall focus on
developing the framework, funding, strategies, programs, policies,
partnerships, and opportunities necessary to address the growing need
for a highly skilled and well-trained workforce to meet the needs of
California's emerging green economy. The GCJC shall do all of the
following:
(1) Assist in identifying and linking green collar job
opportunities with workforce development training opportunities in
local workforce investment areas (LWIAs), encouraging regional
collaboration among LWIAs to meet regional economic demands.
(2) Align workforce development activities with regional economic
recovery and growth strategies.
(3) Develop public, private, philanthropic, and nongovernmental
partnerships to build and expand the state's workforce development
programs, network, and infrastructure.
(4) Provide policy guidance for job training programs for the
clean and green technology sectors to help them prepare specific
populations, such as at-risk youth, displaced workers, veterans,
formerly incarcerated individuals, and others facing barriers to
employment.
(5) Develop, collect, analyze, and distribute statewide and
regional labor market data on California's new and emerging green
industries workforce needs, trends, and job growth.
(6) Collaborate with community colleges and other educational
institutions, registered apprenticeship programs, business and labor
organizations, and community-based and philanthropic organizations to
align workforce development services with strategies for regional
economic growth.
(7) Identify funding resources and make recommendations on how to
expand and leverage these funds.
(8) Foster regional collaboratives in the green economic sector.
(c) The CWIB may accept any revenues, moneys, grants, goods, or
services from federal and state entities, philanthropic
organizations, and other sources, to be used for purposes relating to
the administration and implementation of the strategic initiative,
as described in subdivision (b). The CWIB shall also ensure the
highest level of transparency and accountability and make information
available on the CWIB Internet Web site.
(d) Upon appropriation by the Legislature, the department may
expend the moneys and revenues received pursuant to subdivision (c)
for purposes related to the administration and implementation of the
strategic initiative, and for the award of workforce training grants
implementing the strategic initiative.
SEC. 122. This act shall become operative on July
1, 2013, except that Section 7 of this act, amending Section 5405 of
the Civil Code, shall become operative on January 1, 2014.
SEC. 123. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or
safety within the meaning of Article IV of the Constitution and shall
go into immediate effect. The facts constituting the necessity are:
To allow programmatic changes in statute to be operative at the
same time the Governor's Reorganization Plan No. 2 of 2012 becomes
operative, it is necessary that this act take effect immediately.
SECTION 1. It is the intent of the Legislature
to enact legislation to make conforming programmatic changes to
implement the provisions of the Governor's Reorganization Plan No. 2
of 2012.