Amended in Senate April 29, 2013

Amended in Senate April 15, 2013

Senate Bill No. 820

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 to amend Sections begin insert 11003.4, end insert 19821, begin insert 19841, 19861, 19864, end insert 19876, 19912, begin delete and 19951 end delete begin insert 19951, and 19984 end insert 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, begin insert 13995.20, end insert 13995.60, 13995.64.5, 13995.65.5, begin insert 13995.92, end insert 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, begin delete and 65040.12 end delete begin insert 63021.5, 65040.12, 91550, and 99055 end insert 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 begin delete of, and to repeal Section 13995.92 of, end delete begin insert of end insert 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 begin delete 326.3 end delete begin insert 326.3, 326.4, end insert 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. 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 begin delete and end delete begin insert , including, among others, changing the name Department of Real Estate to Bureau of Real Estate. This bill would also end insert reallocate certain duties of abolished executive entities and officers to begin delete the end delete newly established begin insert and existing end insert 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 begin insert and transfer other duties generally related to economic development from the abolished agency to the office, as specified end insert .

(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 begin insert to transfer certain duties to the Governor’s Office of Business and Economic Development, end insert 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 begin delete to end delete begin insert and end insert 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 begin insert , authorizing the department, rather than the commission, to collect certain fees, and requiring the department, rather than the commission, to administer the Charity Bingo Mitigation Fund end insert .

(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 begin insert and the Commissioner of Business Oversight end insert 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.

Vote: ²⁄₃. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 11003.4 of the end insert begin insert Business and Professions
Code end insert begin insert is amended to read: end insert

11003.4.  

(a) A “limited-equity housing cooperative” or a
“workforce housing cooperative trust” is a corporation that meets
the criteria of Section 11003.2 and that also meets the criteria of
Sections 817 and 817.1 of the Civil Code, as applicable. Except
as provided in subdivision (b), a limited-equity housing or
workforce housing cooperative trust shall be subject to all the
requirements of this chapter pertaining to stock cooperatives.

(b) A limited-equity housing cooperative or a workforce housing
cooperative trust shall be exempt from the requirements of this
chapter if the limited-equity housing cooperative or workforce
housing cooperative trust complies with all the following
conditions:

(1) The United States Department of Housing and Urban
Development, the United States Department of Agriculture, the
National Consumers Cooperative Bank, the California Housing
Finance Agency, the Public Employees’ Retirement System
(PERS), the State Teachers’ Retirement System (STRS), the
Department of Housing and Community Development, or the
Federal Home Loan Bank System or any of its member institutions,
alone or in any combination with each other, or with the city,
county, school district, or redevelopment agency in which the
cooperative is located, directly finances or subsidizes at least 50
percent of the total construction or development cost or one
hundred thousand dollars ($100,000), whichever is less; or the real
property to be occupied by the cooperative was sold or leased by
the Department of Transportation, other state agency, a city, a
county, or a school district for the development of the cooperative
and has a regulatory agreement approved by the Department of
Housing and Community Development for the term of the
permanent financing, notwithstanding the source of the permanent
subsidy or financing.

(2) No more than 20 percent of the total development cost of a
limited-equity mobilehome park, and no more than 10 percent of
the total development cost of other limited-equity housing
cooperatives, is provided by purchasers of membership shares.

(3) A regulatory agreement that covers the cooperative for a
term of at least as long as the duration of the permanent financing
or subsidy, notwithstanding the source of the permanent subsidy
or financing has been duly executed between the recipient of the
financing and either (A) one of the federal or state agencies
specified in paragraph (1) or (B) a local public agency that is
providing financing for the project under a regulatory agreement
meeting standards of the Department of Housing and Community
Development. The regulatory agreement shall make provision for
at least all of the following:

(A) Assurances for completion of the common areas and
facilities to be owned or leased by the limited-equity housing
cooperative, unless a construction agreement between the same
parties contains written assurances for completion.

(B) Governing instruments for the organization and operation
of the housing cooperative by the members.

(C) The ongoing fiscal management of the project by the
cooperative, including an adequate budget, reserves, and provisions
for maintenance and management.

(D) Distribution of a membership information report to any
prospective purchaser of a membership share, prior to purchase
of that share. The membership information report shall contain
full disclosure of the financial obligations and responsibilities of
cooperative membership, the resale of shares, the financing of the
cooperative including any arrangements made with any partners,
membership share accounts, occupancy restrictions, management
arrangements, and any other information pertinent to the benefits,
risks, and obligations of cooperative ownership.

(4) The federal, state, or local public agency that executes the
regulatory agreement shall satisfy itself that the bylaws, articles
of incorporation, occupancy agreement, subscription agreement,
any lease of the regulated premises, any arrangement with partners,
and arrangement for membership share accounts provide adequate
protection of the rights of cooperative members.

(5) The federal or state agency shall receive from the attorney
for the recipient of the financing or subsidy a legal opinion that
the cooperative meets the requirements of Section 817 of the Civil
Code and the exemption provided by this section.

(c) Any limited-equity cooperative, or workforce housing
cooperative trust that meets the requirements for exemption
pursuant to subdivision (b) may elect to be subject to all provisions
of this chapter.

(d) The developer of the cooperative shall notify the begin delete Department
of Real Estate, end delete begin insert Bureau of Real Estate, end insert on a form provided by the
begin delete department, end delete begin insert bureau, end insert that an exemption is claimed under this
section. The begin delete Department of Real Estate end delete begin insert Bureau of Real Estate end insert shall
retain this form for at least four years for statistical purposes.

begin delete SECTION 1. end delete
begin insert SEC. 2. end insert   

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 department shall maintain a file of all applications for
licenses under this 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. This
section shall not authorize the disclosure of personal information
that is otherwise exempt from disclosure.

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 19841 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

19841.  

The regulations adopted by the commission shall do
all of the following:

(a) With respect to applications, registrations, investigations,
and fees, the regulations shall include, but not be limited to,
provisions that do all of the following:

(1) Prescribe the method and begin delete form end delete begin insert manner end insert of application and
registration.

(2) Prescribe the information to be furnished by any applicant,
licensee, or registrant concerning, as appropriate, the person’s
personal history, habits, character, associates, criminal record,
business activities, organizational structure, and financial affairs,
past or present.

(3) Prescribe the information to be furnished by an owner
licensee relating to the licensee’s gambling employees.

(4) Require fingerprinting or other methods of identification of
an applicant, licensee, or employee of a licensee.

(5) Prescribe the manner and method of collection and payment
of fees and issuance of licenses.

(b) Provide for the approval of game rules and equipment by
the department to ensure fairness to the public and compliance
with state laws.

(c) Implement the provisions of this chapter relating to licensing
and other approvals.

(d) Require owner licensees to report and keep records of
transactions, including transactions as determined by the
department, involving cash or credit. The regulations may include,
without limitation, regulations requiring owner licensees to file
with the department reports similar to those required by Sections
5313 and 5314 of Title 31 of the United States Code, and by
Sections 103.22 and 103.23 of Title 31 of the Code of Federal
Regulations, and any successor provisions thereto, from financial
institutions, as defined in Section 5312 of Title 31 of the United
States Code and Section 103.11 of Title 31 of the Code of Federal
Regulations, and any successor provisions.

(e) Provide for the receipt of protests and written comments on
an application by public agencies, public officials, local governing
bodies, or residents of the location of the gambling establishment
or future gambling establishment.

(f) Provide for the disapproval of advertising by licensed
gambling establishments that is determined by the department to
be deceptive to the public. Regulations adopted by the commission
for advertising by licensed gambling establishments shall be
consistent with the advertising regulations adopted by the
California Horse Racing Board and the Lottery Commission.
Advertisement that appeals to children or adolescents or that offers
gambling as a means of becoming wealthy is presumptively
deceptive.

(g) Govern all of the following:

(1) The extension of credit.

(2) The cashing, deposit, and redemption of checks or other
negotiable instruments.

(3) The verification of identification in monetary transactions.

(h) Prescribe minimum procedures for adoption by owner
licensees to exercise effective control over their internal fiscal and
gambling affairs, which shall include, but not be limited to,
provisions for all of the following:

(1) The safeguarding of assets and revenues, including the
recording of cash and evidences of indebtedness.

(2) Prescribing the manner in which compensation from games
and gross revenue shall be computed and reported by an owner
licensee.

(3) The provision of reliable records, accounts, and reports of
transactions, operations, and events, including reports to the
department.

(i) Provide for the adoption and use of internal audits, whether
by qualified internal auditors or by certified public accountants.
As used in this subdivision, “internal audit” means a type of control
that operates through the testing and evaluation of other controls
and that is also directed toward observing proper compliance with
the minimum standards of control prescribed in subdivision (h).

(j) Require periodic financial reports from each owner licensee.

(k) Specify standard forms for reporting financial conditions,
results of operations, and other relevant financial information.

(l) Formulate a uniform code of accounts and accounting
classifications to ensure consistency, comparability, and effective
disclosure of financial information.

(m) Prescribe intervals at which the information in subdivisions
(j) and (k) shall be furnished to the department.

(n) Require audits to be conducted, in accordance with generally
accepted auditing standards, of the financial statements of all owner
licensees whose annual gross revenues equal or exceed a specified
sum. However, nothing herein shall be construed to limit the
department’s authority to require audits of any owner licensee.
Audits, compilations, and reviews provided for in this subdivision
shall be made by independent certified public accountants licensed
to practice in this state.

(o) Restrict, limit, or otherwise regulate any activity that is
related to the conduct of controlled gambling, consistent with the
purposes of this chapter.

(p) Define and limit the area, games, hours of operation, number
of tables, wagering limits, and equipment permitted, or the method
of operation of games and equipment, if the commission, upon the
recommendation of, or in consultation with, the department,
determines that local regulation of these subjects is insufficient to
protect the health, safety, or welfare of residents in geographical
areas proximate to a gambling establishment.

(q) Prohibit gambling enterprises from cashing checks drawn
against any federal, state, or county fund, including, but not limited
to, social security, unemployment insurance, disability payments,
or public assistance payments. However, a gambling enterprise
shall not be prohibited from cashing any payroll checks or checks
for the delivery of goods or services that are drawn against a
federal, state, or county fund.

(r) Provide for standards, specifications, and procedures
governing the manufacture, distribution, including the sale and
leasing, inspection, testing, location, operation, repair, and storage
of gambling equipment, and for the licensing of persons engaged
in the business of manufacturing, distributing, including the sale
and leasing, inspection, testing, repair, and storage of gambling
equipment.

(s) By December 31, 2011, provide procedures, criteria, and
timelines for the processing and approval of applications for the
licensing, temporary or interim licensing, or findings of suitability
for receivers, trustees, beneficiaries, executors, administrators,
conservators, successors in interest, or security interest holders for
a gambling enterprise so that gambling enterprises may operate
continuously in cases including, but not limited to, the death,
insolvency, foreclosure, receivership, or incapacity of a licensee.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 19861 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

19861.  

Notwithstanding subdivision (i) of Section 19801, the
commission shall not deny a license to a gambling establishment
solely because it is not open to the public, provided that all of the
following are true: (a) the gambling establishment is situated in a
local jurisdiction that has an ordinance allowing only private clubs,
and the gambling establishment was in operation as a private club
under that ordinance on December 31, 1997, and met all applicable
state and local gaming registration requirements; (b) the gambling
establishment consists of no more than five gaming tables; (c)
video recordings of the entrance to the gambling room or rooms
and all tables situated therein are made during all hours of operation
by means of closed-circuit television cameras, and these recordings
are retained for a period of 30 days and are made available for
review by the department begin delete or commission end delete upon request; and (d) the
gambling establishment is open to members of the private club
and their spouses in accordance with membership criteria in effect
as of December 31, 1997.

A gambling establishment meeting these criteria, in addition to
the other requirements of this chapter, may be licensed to operate
as a private club gambling establishment until November 30, 2003,
or until the ownership or operation of the gambling establishment
changes from the ownership or operation as of January 1, 1998,
whichever occurs first. Operation of the gambling establishments
after this date shall only be permitted if the local jurisdiction
approves an ordinance, pursuant to Sections 19961 and 19962,
authorizing the operation of gambling establishments that are open
to the public. The commission shall adopt regulations implementing
this section. Prior to the commission’s issuance of a license to a
private club, the department shall ensure that the ownership of the
gambling establishment has remained constant since January 1,
1998, and the operation of the gambling establishment has not
been leased to any third party.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 19864 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

19864.  

(a) Application for a state license or other commission
action shall be begin delete made end delete begin insert submitted to the department end insert on forms
furnished by the begin delete commission. end delete begin insert department. end insert

(b) The application for a gambling license shall include all of
the following:

(1) The name of the proposed licensee.

(2) The name and location of the proposed gambling
establishment.

(3) The gambling games proposed to be conducted.

(4) The names of all persons directly or indirectly interested in
the business and the nature of the interest.

(5) A description of the proposed gambling establishment and
operation.

(6) Any other information and details the commission may
require in order to discharge its begin delete duty end delete begin insert duties end insert properly.

begin delete SEC. 2. end delete
begin insert SEC. 6. end insert   

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 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.

begin delete SEC. 3. end delete
begin insert SEC. 7. end insert   

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
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.

begin delete SEC. 4. end delete
begin insert SEC. 8. end insert   

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 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.

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 19984 of the end insert begin insert Business and Professions Code end insert
begin insert is amended to read: end insert

19984.  

Notwithstanding any other law, a licensed gambling
enterprise may contract with a third party for the purpose of
providing proposition player services at a gambling establishment,
subject to the following conditions:

(a) Any agreement, contract, or arrangement between a gambling
enterprise and a third-party provider of proposition player services
shall be approved in advance by the department, and in no event
shall a gambling enterprise or the house have any interest, whether
direct or indirect, in funds wagered, lost, or won.

(b) The commission shall establish reasonable criteria for, and
require the licensure and registration of, any person or entity that
provides proposition player services at gambling establishments
pursuant to this section, including owners, supervisors, and players.
Those employed by a third-party provider of proposition player
services, including owners, supervisors, observers, and players,
shall wear a badge which clearly identifies them as proposition
players whenever they are present within a gambling establishment.
The commission may impose licensing requirements, disclosures,
approvals, conditions, or limitations as it deems necessary to
protect the integrity of controlled gambling in this state, and may
begin delete assess and collect end delete begin insert assess, and the department may collect, end insert
reasonable fees and deposits as necessary to defray the costs of
providing this regulation and oversight.

(c) The department, pursuant to regulations of the commission,
is empowered to perform background checks, financial audits, and
other investigatory services as needed to assist the commission in
regulating third party providers of proposition player services, and
may assess and collect reasonable fees and deposits as necessary
to defray the costs of providing this regulation and oversight. The
department may adopt emergency regulations in order to implement
this subdivision.

(d) No agreement or contract between a licensed gambling
enterprise and a third party concerning the provision of proposition
player services shall be invalidated or prohibited by the department
pursuant to this section until the commission establishes criteria
for, and makes determinations regarding the licensure or
registration of, the provision of these services pursuant to
subdivision (b).

begin delete SEC. 5. end delete
begin insert SEC. 10. end insert   

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 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, 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 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.

begin delete SEC. 6. end delete
begin insert SEC. 11. end insert   

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, Consumer
Services, and 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.

begin delete SEC. 7. end delete
begin insert SEC. 12. end insert   

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, 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.

begin delete SEC. 8. end delete
begin insert SEC. 13. end insert   

Section 14024 of the Corporations Code is amended
to read:

14024.  

The 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 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 Governor’s Office of Business and
Economic Development.

begin delete SEC. 9. end delete
begin insert SEC. 14. end insert   

Section 14025 of the Corporations Code is amended
to read:

14025.  

The 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.

begin delete SEC. 10. end delete
begin insert SEC. 15. end insert   

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.  Manager

 

begin delete SEC. 11. end delete
begin insert SEC. 16. end insert   

Section 14026 of the Corporations Code is amended
to read:

14026.  

The 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 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 manager shall meet with the board of
directors of each corporation at least once each fiscal year.

(g) Assist corporations in applying for federal grant applications,
and in obtaining program support from the business community.

begin delete SEC. 12. end delete
begin insert SEC. 17. end insert   

Section 14027 of the Corporations Code is amended
to read:

14027.  

The 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 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.

begin delete SEC. 13. end delete
begin insert SEC. 18. end insert   

Section 14028 of the Corporations Code is amended
to read:

14028.  

(a) Upon a finding by the manager that irreparable
harm may occur if guarantee authority is not temporarily withdrawn
from a corporation, the 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 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 manager mutually agree to an extension.
The corporation shall have the opportunity to submit written
material to the manager addressing the items stated in the
temporary withdrawal notice. If the 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 office.

(c) Pursuant to subdivision (a) or (b), the 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 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 manager, and
the 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 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 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 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 manager’s decision to the board within
that 10-day period by sending notice to the manager and to the
chair of the board. Once the manager receives notice that the action
is being appealed, the manager’s action shall be stayed except for
temporary withdrawal of guarantee authority. Upon receipt of the
notice, the 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 manager subject to the
adoption by the corporation of a specified remedial action plan.

(3) Affirm the action taken by the 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 office.

begin delete SEC. 14. end delete
begin insert SEC. 19. end insert   

Section 14030.2 of the Corporations Code is amended
to read:

14030.2.  

(a) The 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 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 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 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 manager
shall submit that report to the Governor and the Legislature.

begin delete SEC. 15. end delete
begin insert SEC. 20. end insert   

Section 14034 of the Corporations Code is amended
to read:

14034.  

(a) The 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.

begin delete SEC. 16. end delete
begin insert SEC. 21. end insert   

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 manager,
with the approval of the Department of Finance, to the trust fund
accounts.

begin delete SEC. 17. end delete
begin insert SEC. 22. end insert   

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 manager may reallocate funds held within a
corporation’s trust fund account.

(1) The 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 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 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.

begin delete SEC. 18. end delete
begin insert SEC. 23. end insert   

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 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.

begin delete SEC. 19. end delete
begin insert SEC. 24. end insert   

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
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 office need only submit one report to comply
with this section and subdivision (f) of Section 8684.2 of the
Government Code.

begin delete SEC. 20. end delete
begin insert SEC. 25. end insert   

Section 14038 of the Corporations Code is amended
to read:

14038.  

(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 manager, pursuant to the
purposes of this chapter. The 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 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 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 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
manager shall develop regulations specifying the basis for
transferring account funds to those corporations that have been in
existence for five years or less.

begin delete SEC. 21. end delete
begin insert SEC. 26. end insert   

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 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.

begin delete SEC. 22. end delete
begin insert SEC. 27. end insert   

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 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. 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.

begin delete SEC. 23. end delete
begin insert SEC. 28. end insert   

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 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 manager upon execution of the loan agreement
and periodically thereafter.

begin delete SEC. 24. end delete
begin insert SEC. 29. end insert   

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 manager. The
corporation shall not receive money on deposit to support
guarantees issued under this chapter without the approval of the
manager.

begin delete SEC. 25. end delete
begin insert SEC. 30. end insert   

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 manager.

begin delete SEC. 26. end delete
begin insert SEC. 31. end insert   

Section 14065 of the Corporations Code is amended
to read:

14065.  

The corporations shall report to the 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.

begin delete SEC. 27. end delete
begin insert SEC. 32. end insert   

Section 14066 of the Corporations Code is amended
to read:

14066.  

The corporation shall make a report to the 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 manager, on or before August 1 of each year.

begin delete SEC. 28. end delete
begin insert SEC. 33. end insert   

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 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
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 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 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 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 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 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 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 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 office if the corporation has
exhausted a loan loss reserve created for this purpose. Interest and
principal received by the office from the corporation shall be
deposited into the same account from which the funds were
originally borrowed.

(f) Upon the approval of the manager, a corporation shall be
authorized to borrow trust funds from the office for the purpose
of relending those funds to small businesses. A corporation shall
demonstrate to the 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 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 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.

begin delete SEC. 29. end delete
begin insert SEC. 34. end insert   

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 manager, unless the 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
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 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 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 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 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 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 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 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 office if the corporation has
exhausted a loan loss reserve created for this purpose. Interest and
principal received by the office from the corporation shall be
deposited into the same account from which the funds were
originally borrowed.

(f) Upon the approval of the manager, a corporation shall be
authorized to borrow trust funds from the office for the purpose
of relending those funds to small businesses. A corporation shall
demonstrate to the 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 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.

begin delete SEC. 30. end delete
begin insert SEC. 35. end insert   

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 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 manager.

(e) As a result of the loan, the jobs generated or retained
demonstrate reasonable conformance to the regulations specifying
employment criteria.

begin delete SEC. 31. end delete
begin insert SEC. 36. end insert   

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 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.

begin delete SEC. 32. end delete
begin insert SEC. 37. end insert   

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 manager.

begin delete SEC. 33. end delete
begin insert SEC. 38. end insert   

Section 14074 of the Corporations Code is amended
to read:

14074.  

The 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.

begin delete SEC. 34. end delete
begin insert SEC. 39. end insert   

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, 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 office may adopt regulations to implement the loan
guarantee program authorized by this section. The 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 office.

begin delete SEC. 35. end delete
begin insert SEC. 40. end insert   

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
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 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.

begin delete SEC. 36. end delete
begin insert SEC. 41. end insert   

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
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 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.

begin delete SEC. 37. end delete
begin insert SEC. 42. end insert   

Section 14085 of the Corporations Code is amended
to read:

14085.  

It shall be unlawful for the 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 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.

begin delete SEC. 38. end delete
begin insert SEC. 43. end insert   

Section 14086 of the Corporations Code is amended
to read:

14086.  

It shall be unlawful for the manager or any person who
is an officer or director of a corporation, or who is an employee
of the 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.

begin delete SEC. 39. end delete
begin insert SEC. 44. end insert   

Section 29503 of the Corporations Code is amended
to read:

29503.  

“Commissioner” means the Commissioner of Business
Oversight.

begin delete SEC. 40. end delete
begin insert SEC. 45. end insert   

Section 31004 of the Corporations Code is amended
to read:

31004.  

“Commissioner” means the Commissioner of Business
Oversight.

begin delete SEC. 41. end delete
begin insert SEC. 46. end insert   

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; (8) insurance premium finance agencies or the insurance
premium finance 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.

begin delete SEC. 42. end delete
begin insert SEC. 47. end insert   

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.

begin delete SEC. 43. end delete
begin insert SEC. 48. end insert   

Section 320 of the Financial Code is amended to read:

320.  

(a)  The chief officer of the Department of Business
Oversight is the Commissioner of Business Oversight. The
Commissioner of 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 and the Corporations Code, is subject to the provisions
of the Government Code relating to department 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.

begin delete SEC. 44. end delete
begin insert SEC. 49. end insert   

Section 326 of the Financial Code is amended to read:

326.  

The 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 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 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.

begin delete SEC. 45. end delete
begin insert SEC. 50. end insert   

Section 350 of the Financial Code is amended to read:

350.  

The chief deputy shall be appointed by the Governor and
hold office at the pleasure of the Governor. The annual salary of
the chief deputy shall be fixed by the Governor.

begin delete SEC. 46. end delete
begin insert SEC. 51. end insert   

Section 351 of the Financial Code is repealed.

begin delete SEC. 47. end delete
begin insert SEC. 52. end insert   

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.

begin delete SEC. 48. end delete
begin insert SEC. 53. end insert   

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.

begin delete SEC. 49. end delete
begin insert SEC. 54. end insert   

Section 371 of the Financial Code is repealed.

begin delete SEC. 50. end delete
begin insert SEC. 55. end insert   

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.

begin delete SEC. 51. end delete
begin insert SEC. 56. end insert   

Section 4805.055 of the Financial Code is amended
to read:

4805.055.  

“Commissioner” means the begin delete Senior Deputy end delete
Commissioner of Business begin delete Oversight for the Division of Financial
Institutions. end delete begin insert Oversight. end insert

begin delete SEC. 52. end delete
begin insert SEC. 57. end insert   

Section 5104 of the Financial Code is amended to
read:

5104.  

“Commissioner” means the begin delete Senior Deputy end delete Commissioner
of Business begin delete Oversight for the Division of Financial Institutions. end delete
begin insert Oversight. end insert

begin delete SEC. 53. end delete
begin insert SEC. 58. end insert   

Section 12003 of the Financial Code is amended to
read:

12003.  

“Commissioner” means the begin delete Senior Deputy end delete
Commissioner of Business begin delete Oversight for the Division of
Corporations, end delete begin insert Oversight, end insert or any deputy, investigator, auditor, or
any other person employed by begin delete him. end delete begin insert him or her. end insert

begin delete SEC. 54. end delete
begin insert SEC. 59. end insert   

Section 14003 of the Financial Code is amended to
read:

14003.  

“Commissioner” means the begin delete Senior Deputy end delete
Commissioner of Business begin delete Oversight for the Division of
Corporations. end delete begin insert Oversight. end insert

begin delete SEC. 55. end delete
begin insert SEC. 60. end insert   

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 Business Oversight the Office of Credit Unions.
The 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.

begin delete SEC. 56. end delete
begin insert SEC. 61. end insert   

Section 14200.2 of the Financial Code is amended
to read:

14200.2.  

The chief officer of the Office of Credit Unions is
the Deputy Commissioner of the Office of Credit Unions. The
Deputy Commissioner of the Office of Credit Unions, under the
direction and on behalf of the Senior Deputy Commissioner for
Business Oversight for the Division of Financial Institutions, shall
administer the laws of this state relating to credit unions or the
credit union business. The Deputy Commissioner of the Office of
Credit Unions shall be appointed by the Governor and shall hold
office at the pleasure of the Governor. The Deputy Commissioner
of the Office of Credit Unions shall receive an annual salary as
fixed by the Governor.

begin delete SEC. 57. end delete
begin insert SEC. 62. end insert   

Section 17002 of the Financial Code is amended to
read:

17002.  

“Commissioner” means the Commissioner of Business
Oversight.

begin delete SEC. 58. end delete
begin insert SEC. 63. end insert   

Section 18002 of the Financial Code is amended to
read:

18002.  

“Commissioner” means the Commissioner of Business
Oversight.

begin delete SEC. 59. end delete
begin insert SEC. 64. end insert   

Section 22005 of the Financial Code is amended to
read:

22005.  

“Commissioner” means the Commissioner of Business
Oversight.

begin delete SEC. 60. end delete
begin insert SEC. 65. end insert   

Section 30002 of the Financial Code is amended to
read:

30002.  

“Commissioner” means the Commissioner of Business
Oversight.

begin delete SEC. 61. end delete
begin insert SEC. 66. end insert   

Section 31055 of the Financial Code is amended to
read:

31055.  

“Commissioner” means the Commissioner of Business
Oversight, or other person to whom the commissioner delegates
the authority to act for him or her in the particular matter.

begin delete SEC. 62. end delete
begin insert SEC. 67. end insert   

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 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 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.

begin delete SEC. 63. end delete
begin insert SEC. 68. end insert   

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 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. 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 Governor’s Office of Business and Economic
Development may adopt regulations to implement the loan
guarantee program authorized by this section. The 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 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.

begin delete SEC. 64. end delete
begin insert SEC. 69. end insert   

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)  “Chief” means the 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.

begin delete SEC. 65. end delete
begin insert SEC. 70. end insert   

Section 11534 of the Government Code is amended
to read:

11534.  

(a) There is in the Government Operations Agency, in
the 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 Chief of the Office of Technology
Services.

(e) Unless the context clearly requires otherwise, the Office of
Technology Services and the Director of 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.

begin delete SEC. 66. end delete
begin insert SEC. 71. end insert   

Section 11538 of the Government Code is amended
to read:

11538.  

The 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.

begin delete SEC. 67. end delete
begin insert SEC. 72. end insert   

Section 11539 of the Government Code is amended
to read:

11539.  

The 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.

begin delete SEC. 68. end delete
begin insert SEC. 73. end insert   

Section 11540 of the Government Code is amended
to read:

11540.  

The Director of 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 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.

begin delete SEC. 69. end delete
begin insert SEC. 74. end insert   

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.

begin delete SEC. 70. end delete
begin insert SEC. 75. end insert   

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) 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 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
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 Department of Technology, are
transferred to the 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 Department
of Technology.

(4) The property of any office, agency, or department related
to functions transferred to the Department of Technology, are
transferred to the 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 Department of
Technology shall be transferred to the Department of Technology
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.

begin delete SEC. 71. end delete
begin insert SEC. 76. end insert   

Section 11544 of the Government Code is amended
to read:

11544.  

(a) The Technology Services Revolving Fund, hereafter
known as the fund, is hereby created within the State Treasury.
The fund shall be administered by the Director of Technology to
receive all revenues from the sale of technology or technology
services provided for in this chapter, for other services rendered
by the Department of Technology, and all other moneys properly
credited to the Department of Technology from any other source,
to pay, upon appropriation by the Legislature, all costs arising
from this chapter and rendering of services to state and other public
agencies, including, but not limited to, employment and
compensation of necessary personnel and expenses, such as
operating and other expenses of the Department of Technology,
and costs associated with approved information technology
projects, and to establish reserves. At the discretion of the Director
of Technology, segregated, dedicated accounts within the fund
may be established. The amendments made to this section by the
act adding this sentence shall apply to all revenues earned on or
after July 1, 2010.

(b) The fund shall consist of all of the following:

(1) Moneys appropriated and made available by the Legislature
for the purposes of this chapter.

(2) Any other moneys that may be made available to the
Department of Technology from any other source, including the
return from investments of moneys by the Treasurer.

(c) The Department of Technology may collect payments from
public agencies for providing services to those agencies that the
agencies have requested from the Department of Technology. The
Department of Technology 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 Department of Technology,
consistent with the annual budget of each department, to the fund.
The Department of Technology shall notify each affected state
agency upon requesting the Controller to make the transfer.

(d) At the end of any fiscal year, if the balance remaining in the
fund at the end of that fiscal year exceeds 25 percent of the portion
of the Department of Technology’s current fiscal year budget used
for support of data center and other client services, the excess
amount shall be used to reduce the billing rates for services
rendered during the following fiscal year.

begin delete SEC. 72. end delete
begin insert SEC. 77. end insert   

Section 11546 of the Government Code is amended
to read:

11546.  

(a) The Department of Technology 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
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 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 Department of Technology 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.

begin delete SEC. 73. end delete
begin insert SEC. 78. end insert   

Section 11549 of the Government Code is amended
to read:

11549.  

(a) There is in state government, in the 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 chief, who shall
be appointed by, and serve at the pleasure of, the Governor. The
chief shall report to the Director of 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 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 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.

begin delete SEC. 74. end delete
begin insert SEC. 79. end insert   

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) “Chief” means the 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.

begin delete SEC. 75. end delete
begin insert SEC. 80. end insert   

Section 11549.3 of the Government Code is amended
to read:

11549.3.  

(a) The 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 Department of Technology any
state agency found to be noncompliant with information security
program requirements.

begin delete SEC. 76. end delete
begin insert SEC. 81. end insert   

Section 12802.8 of the Government Code is amended
to read:

12802.8.  

The Governor may, with respect to the Transportation
Agency, appoint a Deputy Secretary of 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 Governor and shall receive a salary as shall
be fixed by the Governor with the approval of the Department of
Finance.

begin insert

begin insert SEC. 82. end insert   

end insert

begin insert Section 13995.20 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

13995.20.  

Unless the context otherwise requires, the definitions
in this section govern the construction of this chapter.

(a) “Appointed commissioner” means a commissioner appointed
by the Governor pursuant to paragraph (2) of subdivision (b) of
Section 13995.40.

(b) “Assessed business” means a person required to pay an
assessment pursuant to this chapter, and until the first assessment
is levied, any person authorized to vote for the initial referendum.
An assessed business shall not include a public entity or a
corporation when a majority of the corporation’s board of directors
is appointed by a public official or public entity, or serves on the
corporation’s board of directors by virtue of being elected to public
office, or both.

(c) “Commission” means the California Travel and Tourism
Commission.

begin insert

(d) “Director” means the Director of the Governor’s Office of
Business and Economic Development.

end insert begin delete

(d)

end delete

begin insert (e) end insert  “Elected commissioner” means a commissioner elected
pursuant to subdivision (d) of Section 13995.40.

begin delete

(e)

end delete

begin insert (f) end insert  “Industry category” means the following classifications
within the tourism industry:

(1) Accommodations.

(2) Restaurants and retail.

(3) Attractions and recreation.

(4) Transportation and travel services, other than passenger car
rental.

(5) Passenger car rental.

begin delete

(f)

end delete

begin insert (g) end insert  “Industry segment” means a portion of an industry category.
For example, motor home rentals are an industry segment of the
transportation and travel services industry category.

begin delete

(g)

end delete

begin insert (h) end insert  “Maximum assessment” means a dollar amount, adopted by
the commission, over which an assessed business shall not be
required to pay. The commission may adopt differing amounts of
maximum assessment for each industry category or industry
segment.

begin delete

(h)

end delete

begin insert (i) end insert  “Office” means the Office of Tourism, also popularly referred
to as the Division of Tourism, within the begin delete Business, Transportation
and Housing Agency. end delete begin insert Governor’s Office of Business and Economic
Development. end insert

begin delete

(i)

end delete

begin insert (j) end insert  “Person” means an individual, public entity, firm,
corporation, association, or any other business unit, whether
operating on a for-profit or nonprofit basis.

begin delete

(j)

end delete

begin insert (k) end insert  “Referendum” means any vote by mailed ballot of measures
recommended by the commission and approved by the begin delete secretary end delete
begin insert director end insert pursuant to Section 13995.60, except for the initial
referendum, which shall consist of measures contained in the
selection committee report, discussed in Section 13995.30.

begin delete

(k) “Secretary” means the Secretary of Business, Transportation
and Housing.

end delete

(l) “Selection committee” means the Tourism Selection
Committee described in Article 3 (commencing with Section
13995.30).

begin delete

(m) 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.

end delete

begin delete SEC. 77. end delete
begin insert SEC. 83. end insert   

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.  Director

 

begin delete SEC. 78. end delete
begin insert SEC. 84. end insert   

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 director the resolution
described in subdivision (b). The 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 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 director a resolution pertaining to any
matter described in subdivision (b), the 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
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.

begin delete SEC. 79. end delete
begin insert SEC. 85. end insert   

Section 13995.64.5 of the Government Code is
amended to read:

13995.64.5.  

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.

begin delete SEC. 80. end delete
begin insert SEC. 86. end insert   

Section 13995.65.5 of the Government Code is
amended to read:

13995.65.5.  

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.

begin delete

SEC. 81.  

Section 13995.92 of the Government Code is
repealed.

end delete

begin insert

begin insert SEC. 87. end insert   

end insert

begin insert Section 13995.92 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

13995.92.  

begin delete (a) end delete begin delete   end delete 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).

begin delete

(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.

end delete

begin delete SEC. 82. end delete
begin insert SEC. 88. end insert   

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 Director of the
Governor’s Office of Business and Economic Development, and,
for the purpose of state administration of this grant, the 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 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 Governor’s Office of
Business and 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 Governor’s Office of Business and
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.

begin delete SEC. 83. end delete
begin insert SEC. 89. end insert   

Section 14030 of the Government Code is amended
to read:

14030.  

The powers and duties of the department include, but
are not 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 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 that may be available to
the state and increasing the efficiency by which those funds are
utilized.

(d) Planning, designing, constructing, operating, and maintaining
those transportation systems 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 that
have been designated for the department in the Public Utilities
Code.

(e) Coordinating and developing transportation research projects
of statewide interest.

(f) Exercising 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
Transportation and the Secretary of Business, Consumer Services
and Housing upon the consistency between state, local, and federal
housing plans and programs and state, local, and federal
transportation plans and programs.

begin delete SEC. 84. end delete
begin insert SEC. 90. end insert   

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 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.

begin delete SEC. 85. end delete
begin insert SEC. 91. end insert   

Section 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 Governor’s Office of Business and
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.

begin delete SEC. 86. end delete
begin insert SEC. 92. end insert   

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
Director of the Governor’s Office of Business and Economic
Development may assign additional staff on a temporary or
permanent basis.

begin delete SEC. 87. end delete
begin insert SEC. 93. end insert   

Section 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 Director of the Governor’s Office of
Business and Economic Development or his or her designee.

begin delete SEC. 88. end delete
begin insert SEC. 94. end insert   

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) “Department” means the Department of Technology.

(b) “Office” means the Public Safety Communications Office
established by this part.

begin delete SEC. 89. end delete
begin insert SEC. 95. end insert   

Section 15277 of the Government Code is amended
to read:

15277.  

The Public Safety Communications Office is established
within the department. The duties of the 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 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 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 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 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.

begin delete SEC. 90. end delete
begin insert SEC. 96. end insert   

Section 53108.5 of the Government Code is amended
to read:

53108.5.  

“Office,” as used in this article, means the Public
Safety Communications Office within the Department of
Technology.

begin delete SEC. 91. end delete
begin insert SEC. 97. end insert   

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
office, with the advice and assistance of the Attorney General,
shall secure compliance by public agencies as provided in this
article.

begin delete SEC. 92. end delete
begin insert SEC. 98. end insert   

Section 53114 of the Government Code is amended
to read:

53114.  

The 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 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.

begin delete SEC. 93. end delete
begin insert SEC. 99. end insert   

Section 53114.1 of the Government Code is amended
to read:

53114.1.  

To accomplish the responsibilities specified in this
article, the 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 Office of Emergency 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 office to enable it to perform its
duties specified in this article.

begin delete SEC. 94. end delete
begin insert SEC. 100. end insert   

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 office shall review and update
technical and operational standards for public agency systems.

begin delete SEC. 95. end delete
begin insert SEC. 101. end insert   

Section 53115 of the Government Code is amended
to read:

53115.  

The office shall monitor all emergency telephone
systems to ensure they comply with minimal operational and
technical standards as established by the office. If any system does
not comply the 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 office. Failure
to comply within this time shall subject the public agency to action
by the Attorney General pursuant to Section 53116.

begin delete SEC. 96. end delete
begin insert SEC. 102. end insert   

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 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.

begin delete SEC. 97. end delete
begin insert SEC. 103. end insert   

Section 53115.2 of the Government Code is amended
to read:

53115.2.  

(a) The State 911 Advisory Board shall advise the
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 office regarding a final plan that has not been approved
by the 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 office within 90 days
following the initial hearing by the board pursuant to the request.

begin delete SEC. 98. end delete
begin insert SEC. 104. end insert   

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 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 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 office. Any public agency
wishing to request review pursuant to this section shall file its
request with the office within 30 days of filing of the final plan
for which review is sought.

begin delete SEC. 99. end delete
begin insert SEC. 105. end insert   

Section 53116 of the Government Code is amended
to read:

53116.  

The Attorney General may, on behalf of the 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.

begin delete SEC. 100. end delete
begin insert SEC. 106. end insert   

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 office a comprehensive plan detailing a schedule by which
those facilities will be converted to be compatible with the
enhanced emergency telephone system.

begin delete SEC. 101. end delete
begin insert SEC. 107. end insert   

Section 53120 of the Government Code is amended
to read:

53120.  

The 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.

begin delete SEC. 102. end delete
begin insert SEC. 108. end insert   

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 Office” means the Public
Safety Communications Office within the Department of
Technology.

begin delete SEC. 103. end delete
begin insert SEC. 109. end insert   

Section 53661 of the Government Code is amended
to read:

53661.  

(a) The Commissioner of 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 Business Oversight.

(C) When that depository is a federal association, to the Office
of the Comptroller of the Currency.

(D) When that depository is a savings association, to the
Commissioner of 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 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.

begin insert

begin insert SEC. 110. end insert   

end insert

begin insert Section 63021.5 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

63021.5.  

(a) The bank shall be governed and its corporate
power exercised by a board of directors that shall consist of the
following persons:

(1) The Director of Finance or his or her designee.

(2) The Treasurer or his or her designee.

(3) The begin delete Secretary of Business, Transportation and Housing end delete
begin insert Director of the Governor’s Office of Business and Economic
Development end insert or his or her designee, who shall serve as chair of
the board.

(4) An appointee of the Governor.

(5) The Secretary of begin delete State and Consumer Services Agency end delete
begin insert Transportation end insert or his or her designee.

(b) Any designated director shall serve at the pleasure of the
designating power.

(c) Three of the members shall constitute a quorum and the
affirmative vote of three board members shall be necessary for
any action to be taken by the board.

(d) A member of the board shall not participate in any bank
action or attempt to influence any decision or recommendation by
any employee of, or consultant to, the bank that involves a sponsor
of which he or she is a representative or in which the member or
a member of his or her immediate family has a personal financial
interest within the meaning of Section 87100. For purposes of this
section, “immediate family” means the spouse, children, and
parents of the member.

(e) Except as provided in this subdivision, the members of the
board shall serve without compensation, but shall be reimbursed
for actual and necessary expenses incurred in the performance of
their duties to the extent that reimbursement for these expenses is
not otherwise provided or payable by another public agency, and
shall receive one hundred dollars ($100) for each full day of
attending meetings of the authority.

begin delete SEC. 104. end delete
begin insert SEC. 111. end insert   

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 California Environmental
Protection, begin delete National end delete begin insert Natural end insert Resources, Transportation, and
Business, Consumer Services, and Housing, the Working Group
on Environmental Justice established pursuant to Section 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 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.

begin insert

begin insert SEC. 112. end insert   

end insert

begin insert Section 91550 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

91550.  

There is in state government the California Industrial
Development Financing Advisory Commission, consisting of five
members, as follows:

(a) The Treasurer, who shall serve as chairperson.

(b) The Controller.

(c) The Director of Finance.

(d) The begin delete Secretary of Business, Transportation and Housing. end delete
begin insert Director of the Governor’s Office of Business and Economic
Development. end insert

(e) The Commissioner of begin delete Corporations. end delete begin insert Business Oversight. end insert

Members of the commission may each designate a deputy or
employee in his or her agency to act for him or her at all meetings
of the commission. The first meeting shall be convened by the
Treasurer.

begin insert

begin insert SEC. 113. end insert   

end insert

begin insert Section 99055 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

99055.  

(a) Solely for the purpose of authorizing the issuance
and sale pursuant to the State General Obligation Bond Law of
the bonds authorized by this title and the making of those
determinations and the taking of other actions as are authorized
by this title, the Economic Recovery Financing Committee is
hereby created. For purposes of this title, the Economic Recovery
Financing Committee is “the committee” as that term is used in
the State General Obligation Bond Law (Chapter 4 (commencing
with Section 16720) of Part 3 of Division 4 of Title 2).

(b) The committee consists of all of the following members:

(1) The Governor or his or her designee.

(2) The Director of Finance.

(3) The Treasurer.

(4) The Controller.

(5) The begin delete Secretary of Business, Transportation and Housing. end delete
begin insert Director of the Governor’s Office of Business and Economic
Development. end insert

(6) The Director of General Services.

(7) The Director of Transportation.

(c) Notwithstanding any other provision of law, any member
may designate a deputy to act as that member in his or her place
and stead for all purposes, as though the member were personally
present.

(d) The Legislature finds and declares that each member of the
committee has previously acted as a member of a similar finance
committee.

(e) A majority of the members of the committee shall constitute
a quorum of the committee and may act for the committee.

(f) The Director of Finance shall serve as chairperson of the
committee.

begin delete SEC. 105. end delete
begin insert SEC. 114. end insert   

Section 71.4 of the Harbors and Navigation Code
is amended to read:

71.4.  

(a) (1) The 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 division finds that the project is
feasible.

(2) The minimum annual rate of interest charged by the division
for a loan shall be set annually by the division and shall be based
on the Pooled Money Investment Account interest rate.

(b) The 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 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 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 division, in every loan contract. The 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
division shall monitor these rates to ensure that the berthing charges
are sufficient to ensure timely and complete repayment of the loan.

(f) The division shall submit any project for which it
recommends any loan be made to the Governor for inclusion in
the Budget Bill.

(g) The division may restate an existing loan under this article,
upon written request by the borrower.

begin delete SEC. 106. end delete
begin insert SEC. 115. end insert   

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 division, may be renegotiated by the division and the County
of Sonoma, 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.

begin delete SEC. 107. end delete
begin insert SEC. 116. end insert   

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 division with the advice of the commission.

begin delete SEC. 108. end delete
begin insert SEC. 117. end insert   

Section 76.5 of the Harbors and Navigation Code
is amended to read:

76.5.  

In processing applications under this article, the 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.

begin delete SEC. 109. end delete
begin insert SEC. 118. end insert   

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 division
for a loan shall be set annually by the division and shall be a rate
equal to 1 percent per annum plus the prime or base rate of interest.

(b) The 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 divisional funds, unless the transfer is, by reason
of the death of the borrower, to the borrower’s heirs.

(e) The 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 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 division.

(g) The division may, upon written request by the borrower,
restate an existing loan.

begin delete SEC. 110. end delete
begin insert SEC. 119. end insert   

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 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 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.

begin delete SEC. 111. end delete
begin insert SEC. 120. end insert   

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
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 proposals for local and regional waterways,
piers, harbors, docks, or other recreational areas that have applied
for grant or loan funds from the division prior to 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 and any loan or grant that has been or is being
considered for a determination of eligibility by the division pending
the previous report.

(2) A report required to be submitted pursuant to paragraph (1)
shall be submitted in compliance with Section 9795 of the
Government Code.

begin delete SEC. 112. end delete
begin insert SEC. 121. end insert   

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 Governor’s Office of Business and 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.

begin delete SEC. 113. end delete
begin insert SEC. 122. end insert   

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 Governor’s Office of Business and
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.

begin delete SEC. 114. end delete
begin insert SEC. 123. end insert   

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, 23701l, 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, 23701l, 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, 23701l, 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.

 

(3) This section shall not require a city, county, or city and
county to use this model ordinance in order to authorize remote
caller bingo.

(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.

(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.

(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.

(f) No minors shall be allowed to participate in any remote caller
bingo game.

(g) A remote caller bingo game shall not include any site that
is not located within this state.

(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. 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.

(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 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 department shall
post the ordinance on its Internet Web site.

(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.

(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.

(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.

(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.

(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 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.

(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.

(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
begin insert submitted to the department and end insert 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 begin delete assess and collect end delete begin insert assess, and the
department may collect, end insert reasonable fees and deposits as necessary
to defray the costs of regulation and oversight.

(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.

(r) An organization that conducts remote caller bingo games
shall retain records in connection with the remote caller bingo
game for five years.

(s) (1) All equipment used for remote caller bingo shall be
approved in advance by the Department of Justice pursuant to
regulations adopted begin delete pursuant to subdivision (r) of Section 19841
of the Business and Professions Code. end delete begin insert by the department. end insert

(2) The department shall monitor operation of the transmission
and other equipment used for remote caller bingo, and monitor the
game.

(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
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 department, provided that the controls shall be deemed
approved by the department after 90 days from the date of
submission unless disapproved.

(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.

(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 department within
120 days after the close of the vendor’s fiscal year. In addition,
the 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 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 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 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 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) Any audit required to be conducted by the department shall
not commence before January 1, 2010.

(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.

(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.

(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.

(3) “Person” includes a natural person, corporation, limited
liability company, partnership, trust, joint venture, association, or
any other business organization.

begin insert

begin insert SEC. 124. end insert   

end insert

begin insert Section 326.4 of the end insert begin insert Penal Code end insert begin insert is amended to read: end insert

326.4.  

(a) Consistent with the Legislature’s finding that
card-minding devices, as described in subdivision (p) of Section
326.5, are the only permissible electronic devices to be used by
charity bingo players, and in an effort to ease the transition to
remote caller bingo on the part of those nonprofit organizations
that, as of July 1, 2008, used electronic devices other than
card-minding devices to conduct games in reliance on an ordinance
of a city, county, or city and county that, as of July 1, 2008,
expressly recognized the operation of electronic devices other than
card-minding devices by organizations purportedly authorized to
conduct bingo in the city, county, or city and county, there is
hereby created the Charity Bingo Mitigation Fund.

(b) The Charity Bingo Mitigation Fund shall be administered
by the begin delete California Gambling Control Commission. end delete begin insert Department of
Justice. end insert

(c) Mitigation payments to be made by the Charity Bingo
Mitigation Fund shall not exceed five million dollars ($5,000,000)
in the aggregate.

(d) (1) To allow the Charity Bingo Mitigation Fund to become
immediately operable, five million dollars ($5,000,000) shall be
loaned from the accrued interest in the Indian Gaming Special
Distribution Fund to the Charity Bingo Mitigation Fund on or after
January 1, 2009, to make mitigation payments to eligible nonprofit
organizations. Five million dollars ($5,000,000) of this loan amount
is hereby appropriated to the California Gambling Control
Commission for the purposes of providing mitigation payments
to certain charitable organizations, as described in subdivision (e).
Pursuant to Section 16304 of the Government Code, after three
years the unexpended balance shall revert back to the Charity
Bingo Mitigation Fund.

(2) To reimburse the Special Distribution Fund, those nonprofit
organizations that conduct a remote caller bingo game pursuant
to Section 326.3 shall pay to the begin delete California Gambling Control
Commission end delete begin insert Department of Justice end insert an amount equal to 5 percent
of the gross revenues of each remote caller bingo game played
until that time as the full advanced amount plus interest on the
loan at the rate accruing to moneys in the Pooled Money
Investment Account is reimbursed.

(e) (1) An organization meeting the requirements in subdivision
(a) shall be eligible to receive mitigation payments from the Charity
Bingo Mitigation Fund only if the city, county, or city and county
in which the organization is located maintained official records of
the net revenues generated for the fiscal year ending June 30, 2008,
by the organization from the use of electronic devices or the
organization maintained audited financial records for the fiscal
year ending June 30, 2008, which show the net revenues generated
from the use of electronic devices.

(2) In addition, an organization applying for mitigation payments
shall provide proof that its board of directors has adopted a
resolution and its chief executive officer has signed a statement
executed under penalty of perjury stating that, as of January 1,
2009, the organization has ceased using electronic devices other
than card-minding devices, as described in subdivision (p) of
Section 326.5, as a fundraising tool.

(3) Each eligible organization may apply to the California
Gambling Control Commission no later than January 31, 2009,
for the mitigation payments in the amount equal to net revenues
from the fiscal year ending June 30, 2008, by filing an application,
including therewith documents and other proof of eligibility,
including any and all financial records documenting the
organization’s net revenues for the fiscal year ending June 30,
2008, as the California Gambling Control Commission may require.
The California Gambling Control Commission is authorized to
access and examine the financial records of charities requesting
funding in order to confirm the legitimacy of the request for
funding. In the event that the total of those requests exceeds five
million dollars ($5,000,000), payments to all eligible applicants
shall be reduced in proportion to each requesting organization’s
reported or audited net revenues from the operation of electronic
devices.

begin delete SEC. 115. end delete
begin insert SEC. 125. end insert   

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 23701l 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) 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) 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) 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 department as meeting the requirements of this section and
any additional requirements stated in regulations adopted by the
begin delete commission. end delete begin insert department. end insert Any proposed material change to the
device, including any change to the software used by the device,
shall be submitted to the department and approved by the
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, begin delete the commission and end delete 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 begin delete made pursuant
to subdivision (r) of Section 19841 of the Business and Professions
Code. end delete begin insert established by the department in regulations. end insert 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 Department of Justice shall issue regulations to
implement the requirements of this 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.

(C) “Person” includes a natural person, corporation, limited
liability company, partnership, trust, joint venture, association, or
any other business organization.

begin delete SEC. 116. end delete
begin insert SEC. 126. end insert   

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 Governor’s
Office of Business and 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.

begin delete SEC. 117. end delete
begin insert SEC. 127. end insert   

Section 41136 of the Revenue and Taxation Code
is amended to read:

41136.  

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) To pay refunds authorized by this part.

(b) To pay the State Board of Equalization for the cost of the
administration of this part.

(c) To pay the Department of Technology for its costs in
administration of the “911” emergency telephone number system.

(d) To pay bills submitted to the Department of 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:

(1) A basic system.

(2) A basic system with telephone central office identification.

(3) A system employing automatic call routing.

(4) Approved incremental costs.

(e) To pay claims of local agencies for approved incremental
costs, not previously compensated for by another governmental
agency.

(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:

(1) A basic system.

(2) A basic system with telephone central office identification.

(3) A system employing automatic call routing.

(4) Approved incremental costs. Incremental costs shall not be
allowed unless the costs are concurred in by the Department of
Technology.

begin delete SEC. 118. end delete
begin insert SEC. 128. end insert   

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 Governor’s Office of Business
and 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.

begin delete SEC. 119. end delete
begin insert SEC. 129. end insert   

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 (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,
Consumer Services, and Housing Agency.

begin delete SEC. 120. end delete
begin insert SEC. 130. end insert   

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 Director of the
Governor’s Office of Business and 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.

begin delete SEC. 121. end delete
begin insert SEC. 131. end insert   

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 Governor’s Office of Business and 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.

begin delete SEC. 122. end delete
begin insert SEC. 132. end insert   

This act shall become operative on July 1, 2013,
except that Section begin delete 7 end delete begin insert 12 end insert of this act, amending Section 5405 of the
Civil Code, shall become operative on January 1, 2014.

begin delete SEC. 123. end delete
begin insert SEC. 133. end insert   

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.