BILL NUMBER: SB 820 ENROLLED
BILL TEXT
PASSED THE SENATE SEPTEMBER 10, 2013
PASSED THE ASSEMBLY SEPTEMBER 9, 2013
AMENDED IN ASSEMBLY AUGUST 26, 2013
AMENDED IN ASSEMBLY JUNE 4, 2013
AMENDED IN SENATE APRIL 29, 2013
AMENDED IN SENATE APRIL 15, 2013
INTRODUCED BY Committee on Governmental Organization (Senators
Wright (Chair), Berryhill, Calderon, Cannella, Correa, De León,
Galgiani, Hernandez, Lieu, Nielsen, and Padilla)
MARCH 14, 2013
An act to amend Sections 11003.4, 19821, 19841, 19861, 19864,
19876, 19912, 19951, and 19984 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, 355, 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,
11544, 11546, 11549, 11549.1, 12802.8, 12856, 13995.20, 13995.60,
13995.64.5, 13995.65.5, 13995.92, 13997.7, 14030, 14534.1, 14998.3,
14998.4, 14998.6, 14998.7, 53108.5, 53113, 53114, 53114.2, 53115,
53115.2, 53115.3, 53116, 53119, 53120, 53661, 63021.5, 65040.12,
91550, and 99055 of, to amend the heading of Article 5 (commencing
with Section 13995.50) of Chapter 1 of Part 4.7 of Division 3 of
Title 2 of, and to add Section 12803.2 to, the Government Code, to
amend Sections 71.4, 71.7, 72.6, 76.5, 76.6, 82, and 82.3 of the
Harbors and Navigation Code, to amend Sections 40448.6 and 44272 of
the Health and Safety Code, to amend Sections 326.3, 326.4, 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, 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, and created new ones,
including, but not limited to, the Transportation 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, including, among others,
changing the name Department of Real Estate to Bureau of Real Estate
and the California Emergency Management Agency to the Office of
Emergency Services. This bill would also reallocate certain duties of
abolished and reorganized executive entities and officers to newly
established and existing ones. This bill would specifically authorize
the Governor to appoint up to 4 deputies for the Secretary of
Transportation, up to 3 deputies for the Secretary of Government
Operations, and up to 3 deputies for the Secretary of Business,
Consumer Services, and Housing under certain conditions.
(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 and transfer other duties generally related to
economic development from the abolished agency to the office, as
specified.
(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 to transfer certain duties to the Governor's Office of Business
and Economic Development, delete obsolete provisions, and modify an
established assessment rate on passenger rental cars, as specified.
(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 and 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, 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.
(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 and restrictions of the Department
of Business Oversight and the Commissioner of Business Oversight to
include additional activities relating to the oversight and functions
of corporations and financial institutions. The bill would require
the Commissioner of Business Oversight to employ legal counsel and
related services 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.
(16) This bill would become operative on July 1, 2013, except as
provided.
(17) This bill would declare that it is to take effect immediately
as an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 11003.4 of the Business and Professions Code is
amended to read:
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 Bureau of
Real Estate, on a form provided by the bureau, that an exemption is
claimed under this section. The Bureau of Real Estate shall retain
this form for at least four years for statistical purposes.
SEC. 2. 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.
SEC. 3. Section 19841 of the Business and Professions Code is
amended to read:
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 manner 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.
SEC. 4. Section 19861 of the Business and Professions Code is
amended to read:
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 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.
SEC. 5. Section 19864 of the Business and Professions Code is
amended to read:
19864. (a) Application for a state license or other commission
action shall be submitted to the department on forms furnished by the
department.
(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 duties properly.
SEC. 6. 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.
SEC. 7. 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.
SEC. 8. 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.
SEC. 9. Section 19984 of the Business and Professions Code is
amended to read:
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 assess, and the department
may collect, 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).
SEC. 10. 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.
SEC. 11. 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.
SEC. 12. 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
email address of the president of the association, other than the
address, telephone number, or email 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.
SEC. 13. 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.
SEC. 14. 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.
SEC. 15. 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
SEC. 16. 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.
SEC. 17. 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.
SEC. 18. 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 manager.
(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.
SEC. 19. 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.
SEC. 20. 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.
SEC. 21. 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.
SEC. 22. 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.
SEC. 23. 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.
SEC. 24. 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.
SEC. 25. 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.
SEC. 26. 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.
SEC. 27. 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.
SEC. 28. 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.
SEC. 29. 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.
SEC. 30. 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.
SEC. 31. 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.
SEC. 32. 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.
SEC. 33. 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.
SEC. 34. 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.
SEC. 35. 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.
SEC. 36. 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.
SEC. 37. 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.
SEC. 38. 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.
SEC. 39. 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.
SEC. 40. 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.
SEC. 41. 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.
SEC. 42. 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.
SEC. 43. 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.
SEC. 44. Section 29503 of the Corporations Code is amended to
read:
29503. "Commissioner" means the Commissioner of Business
Oversight.
SEC. 45. Section 31004 of the Corporations Code is amended to
read:
31004. "Commissioner" means the Commissioner of Business
Oversight.
SEC. 46. Section 300 of the Financial Code 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.
SEC. 47. Section 301 of the Financial Code is amended to read:
301. (a) This chapter is applicable to this division, Division
1.1 (commencing with Section 1000), Division 1.2 (commencing with
Section 2000), Division 1.6 (commencing with Section 4800), Division
5 (commencing with Section 14000), Division 7 (commencing with
Section 18000), and Division 15 (commencing with Section 31000).
(b) Except as provided in subdivision (c), this article, and
Articles 2 (commencing with Section 320) and 3 (commencing with
Section 350) are applicable to the administration of laws by the
Division of Corporations.
(c) Sections 329, 330, 332, 335, 336, 357, 378, 379, and 381 are
not applicable to the Division of Corporations.
SEC. 48. 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 jurisdiction of the Division of Corporations, or
in which the commissioner joins or intervenes as to a matter within
the jurisdiction of the Division of Corporations, as a friend of the
court or otherwise.
(c) The Commissioner of Business Oversight shall employ
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.
(d) Sections 11040, 11042, and 11043 of the Government Code do not
apply to the Division of Corporations.
SEC. 49. 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.
SEC. 50. 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.
SEC. 51. Section 351 of the Financial Code is repealed.
SEC. 52. 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, subject to Senate
confirmation, 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, subject to Senate confirmation,
and shall hold office at the pleasure of the Governor. The Senior
Deputy Commissioner of Business Oversight for the Division of
Financial Institutions shall receive an annual salary as fixed by the
Governor.
SEC. 53. Section 353 of the Financial Code is amended to read:
353. Before entering upon the duties of his or her office each
deputy and examiner shall take and subscribe to the constitutional
oath of office.
SEC. 54. Section 355 of the Financial Code is amended to read:
355. The Commissioner of Business Oversight, the Senior Deputy
Commissioner of the Division of Financial Institutions, or any deputy
or employee of the Division of Financial Institutions shall not do
or be any of the following with respect to any bank, savings
association, credit union, or industrial loan company supervised by
the department:
(a) Be indebted, directly or indirectly, as borrower, endorser,
surety, or guarantor to any such bank, savings association, credit
union, or industrial loan company.
(b) Be an officer, director, or employee of any such bank, savings
association, credit union, or industrial loan company.
(c) Own or deal in directly or indirectly, the shares or
obligations of any such bank, savings association, credit union, or
industrial loan company.
(d) Be interested in or, directly or indirectly, receive from any
such bank, savings association, credit union, or industrial loan
company or any officer, director, or employee thereof, any salary,
fee, compensation, or other valuable thing by way of gift, credit,
compensation for services, or otherwise. However, this subdivision
does not prohibit any person from being interested in or directly or
indirectly receiving (1) anything which is expressly excluded from a
definition of "gift" or "honorarium" in the Political Reform Act of
1974 (Title 9 (commencing with Section 81000) of the Government Code)
or in regulations issued under the Political Reform Act of 1974 by
the Fair Political Practices Commission or (2) anything which, if
received by the commissioner, would constitute a gift or honorarium
within the meaning of the Political Reform Act of 1974 or regulations
issued under the Political Reform Act of 1974 by the Fair Political
Practices Commission but which the commissioner would not be
prohibited from receiving under the Political Reform Act of 1974 or
regulations issued under the Political Reform Act of 1974 by the Fair
Political Practices Commission.
(e) Be interested in or engage in the negotiation of any loan to,
obligation of, or accommodation for another person to or with any
such bank, savings association, credit union, or industrial loan
company.
Notwithstanding the foregoing the commissioner and any deputy or
employee may have and maintain one or more deposit or similar
accounts in any bank, savings association, credit union, or
industrial loan company in this state and may maintain with any bank,
savings association, credit union, or industrial loan company in
this state a loan which was not obtained in violation of this section
if the person reports the loan in writing to the department within
30 days after the person commences his or her term of appointment or
employment with the department and if the loan is not renewed,
renegotiated, extended, or otherwise modified on or after July 1,
1997.
A violation of this section by any person shall constitute
sufficient grounds for his or her removal or discharge.
SEC. 55. Section 371 of the Financial Code is repealed.
SEC. 56. Section 371 is added to the Financial Code, to read:
371. (a) There is in the Department of Business Oversight, the
Division of Corporations, under the direction of the Senior Deputy
Commissioner of Business Oversight for the Division of Corporations.
The senior deputy commissioner has charge of the execution of the
laws of the state that were, prior to July 1, 2013, under the charge
of the Department of Corporations.
(b) There is in the Department of Business Oversight, the Senior
Deputy Commissioner of the Department of Business Oversight for the
Division of Financial Institutions. Under the direction of the senior
deputy commissioner, the Division of Financial Institutions has
charge of the execution of the laws of the state that were, prior to
July 1, 2013, under the charge of the Department of Financial
Institutions.
SEC. 57. Section 4805.055 of the Financial Code is amended to
read:
4805.055. "Commissioner" means the Commissioner of Business
Oversight.
SEC. 58. Section 5104 of the Financial Code is amended to read:
5104. "Commissioner" means the Commissioner of Business
Oversight.
SEC. 59. Section 12003 of the Financial Code is amended to read:
12003. "Commissioner" means the Commissioner of Business
Oversight, or any deputy, investigator, auditor, or any other person
employed by him or her.
SEC. 60. Section 14003 of the Financial Code is amended to read:
14003. "Commissioner" means the Commissioner of Business
Oversight.
SEC. 61. 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.
SEC. 62. 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 of 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.
SEC. 63. Section 17002 of the Financial Code is amended to read:
17002. "Commissioner" means the Commissioner of Business
Oversight.
SEC. 64. Section 18002 of the Financial Code is amended to read:
18002. "Commissioner" means the Commissioner of Business
Oversight.
SEC. 65. Section 22005 of the Financial Code is amended to read:
22005. "Commissioner" means the Commissioner of Business
Oversight.
SEC. 66. Section 30002 of the Financial Code is amended to read:
30002. "Commissioner" means the Commissioner of Business
Oversight.
SEC. 67. 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.
SEC. 68. 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.
SEC. 69. 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.
SEC. 70. 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.
SEC. 71. 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.
SEC. 72. 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.
SEC. 73. 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.
SEC. 74. 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.
SEC. 75. 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.
SEC. 76. 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.
SEC. 77. 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.
SEC. 78. 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.
SEC. 79. 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.
SEC. 80. Section 12802.8 of the Government Code is amended to
read:
12802.8. (a) 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.
(b) The Governor, upon the recommendation of the Secretary of
Transportation, may appoint up to four deputies for the secretary.
SEC. 81. Section 12803.2 is added to the Government Code, to read:
12803.2. (a) The Government Operations Agency shall consist of
all of the following:
(1) The Office of Administrative Law.
(2) The Public Employees' Retirement System.
(3) The State Teachers' Retirement System.
(4) The State Personnel Board.
(5) The California Victim Compensation and Government Claims
Board.
(6) The Department of General Services.
(7) The Department of Technology.
(8) The Franchise Tax Board.
(9) The Department of Human Resources.
(b) The Government Operations Agency shall be governed by the
Secretary of Government Operations pursuant to Section 12801.
However, the Director of Human Resources shall report directly to the
Governor on issues relating to labor relations.
(c) The Governor, upon the recommendation of the Secretary of
Government Operations, may appoint up to three deputies for the
secretary.
SEC. 82. Section 12856 of the Government Code is amended to read:
12856. (a) The Governor, upon the recommendation of the Secretary
of Business, Consumer Services, and Housing, may appoint up to three
deputies for the secretary.
(b) In addition to any other provision of law, the Secretary of
Business, Consumer Services, and Housing may appoint an assistant,
who is exempt from the civil service laws. The secretary shall
prescribe the duties of the appointed assistant and shall fix the
salary of such assistant subject to the approval of the Director of
Finance. The appointed assistant shall serve at the pleasure of the
secretary.
SEC. 83. Section 13995.20 of the Government Code is amended to
read:
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.
(d) "Director" means the Director of the Governor's Office of
Business and Economic Development.
(e) "Elected commissioner" means a commissioner elected pursuant
to subdivision (d) of Section 13995.40.
(f) "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.
(g) "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.
(h) "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.
(i) "Office" means the Office of Tourism, also popularly referred
to as the Division of Tourism, within the Governor's Office of
Business and Economic Development.
(j) "Person" means an individual, public entity, firm,
corporation, association, or any other business unit, whether
operating on a for-profit or nonprofit basis.
(k) "Referendum" means any vote by mailed ballot of measures
recommended by the commission and approved by the director 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.
(l) "Selection committee" means the Tourism Selection Committee
described in Article 3 (commencing with Section 13995.30).
SEC. 84. 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
SEC. 85. 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.
SEC. 86. 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.
SEC. 87. 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.
SEC. 88. Section 13995.92 of the Government Code is amended to
read:
13995.92. The proposed assessment for the passenger rental car
industry 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 for an amount
sufficient to fund the approved marketing plan of no less than fifty
million dollars ($50,000,000) per fiscal year.
SEC. 89. 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.
SEC. 90. 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.
SEC. 91. Section 14534.1 of the Government Code is amended to
read:
14534.1. Notwithstanding Section 12850.6 or subdivision (b) of
Section 12800, as added to this code by the Governor's Reorganization
Plan No. 2 of 2012 during the 2011-12 Regular Session, the
commission shall retain independent authority to perform those duties
and functions prescribed to it under any provision of law.
SEC. 92. 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.
SEC. 93. 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.
SEC. 94. 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.
SEC. 95. 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.
SEC. 96. Section 53108.5 of the Government Code is amended to
read:
53108.5. "Division," as used in this article, means the Public
Safety Communications Division within the Office of Emergency
Services.
SEC. 97. 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.
SEC. 98. 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.
SEC. 99. 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.
SEC. 100. 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.
SEC. 101. 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.
SEC. 102. 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.
SEC. 103. 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.
SEC. 104. 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.
SEC. 105. 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.
SEC. 106. 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.
SEC. 107. Section 63021.5 of the Government Code is amended to
read:
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 Director of the Governor's Office of Business and Economic
Development or his or her designee, who shall serve as chair of the
board.
(4) An appointee of the Governor.
(5) The Secretary of Transportation 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.
SEC. 108. 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, Natural 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 overconcentrating these uses in proximity to
schools or residential dwellings.
(3) Propose methods for providing for the location of new schools
and residential dwellings in a manner that seeks to avoid locating
these uses in proximity to industrial facilities and uses that will
contain or produce material that because of its quantity,
concentration, or physical or chemical characteristics, poses a
significant hazard to human health and safety.
(4) Propose methods for promoting more livable communities by
expanding opportunities for transit-oriented development so that
residents minimize traffic and pollution impacts from traveling for
purposes of work, shopping, schools, and recreation.
(e) For the purposes of this section, "environmental justice"
means the fair treatment of people of all races, cultures, and
incomes with respect to the development, adoption, implementation,
and enforcement of environmental laws, regulations, and policies.
SEC. 109. Section 91550 of the Government Code is amended to read:
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 Director of the Governor's Office of Business and Economic
Development.
(e) The Commissioner of Business Oversight.
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.
SEC. 110. Section 99055 of the Government Code is amended to read:
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 Director of the Governor's Office of Business and Economic
Development.
(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.
SEC. 111. 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.
SEC. 112. 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.
SEC. 113. 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.
SEC. 114. 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.
SEC. 115. 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.
SEC. 116. 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.
SEC. 117. 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.
SEC. 118. 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.
SEC. 119. 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
onroad 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.
SEC. 120. 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.
(2) One of the great strengths of California is a vibrant
nonprofit sector.
(3) Nonprofit and philanthropic organizations touch the lives of
every Californian through service and employment.
(4) Many of these services would not be available if nonprofit
organizations did not provide them.
(5) There is a need to provide methods of fundraising to nonprofit
organizations to enable them to provide these essential services.
(6) Historically, many nonprofit organizations have used
charitable bingo as one of their key fundraising strategies to
promote the mission of the charity.
(7) Legislation is needed to provide greater revenues for
nonprofit organizations to enable them to fulfill their charitable
purposes, and especially to meet their increasing social service
obligations.
(8) Legislation is also needed to clarify that existing law
requires that all charitable bingo must be played using a tangible
card and that the only permissible electronic devices to be used by
charitable bingo players are card-minding devices.
(b) Neither the prohibition on gambling in this chapter nor in
Chapter 10 (commencing with Section 330) applies to any remote caller
bingo game that is played or conducted in a city, county, or city
and county pursuant to an ordinance enacted under Section 19 of
Article IV of the California Constitution, if the ordinance allows a
remote caller bingo game to be played or conducted only in accordance
with this section, including the following requirements:
(1) The game may be conducted only by the following organizations:
(A) An organization that is exempted from the payment of the taxes
imposed under the Corporation Tax Law by Section 23701a, 23701b,
23701d, 23701e, 23701f, 23701g, 23701k, 23701 l , or
23701w of the Revenue and Taxation Code.
(B) A mobilehome park association.
(C) A senior citizens' organization.
(D) Charitable organizations affiliated with a school district.
(2) The organization conducting the game shall have been
incorporated or in existence for three years or more.
(3) The organization conducting the game shall be licensed
pursuant to subdivision (l) of Section 326.5.
(4) The receipts of the game shall be used only for charitable
purposes. The organization conducting the game shall determine the
disbursement of the net receipts of the game.
(5) The operation of bingo may not be the primary purpose for
which the organization is organized.
(c) (1) A city, county, or city and county may adopt an ordinance
in substantially the following form to authorize remote caller bingo
in accordance with the requirements of subdivision (b):
Sec. _.01. Legislative Authorization.
This chapter is adopted pursuant to Section 19 of Article IV of
the California Constitution, as implemented by Sections 326.3 and
326.4 of the Penal Code.
Sec. _.02. Remote Caller Bingo Authorized.
Remote Caller Bingo may be lawfully played in the City,
County, or City and County] pursuant to the provisions of Sections
326.3 and 326.4 of the Penal Code, and this chapter, and not
otherwise.
Sec. _.03. Qualified Applicants: Applicants for Licensure.
(a) The following organizations are qualified to apply to the
License Official for a license to operate a bingo game if the
receipts of those games are used only for charitable purposes:
(1) An organization exempt from the payment of the taxes imposed
under the Corporation Tax Law by Section 23701a, 23701b, 23701d,
23701e, 23701f, 23701g, 23701k, 23701 l , or 23701w of the
Revenue and Taxation Code.
(2) A mobilehome park association of a mobilehome park that is
situated in the City, County, or City and County].
(3) Senior citizen organizations.
(4) Charitable organizations affiliated with a school district.
(b) The application shall be in a form prescribed by the License
Official and shall be accompanied by a nonrefundable filing fee in an
amount determined by resolution of the Governing Body of the City,
County, or City and County] from time to time. The following
documentation shall be attached to the application, as applicable:
(1) A certificate issued by the Franchise Tax Board certifying
that the applicant is exempt from the payment of the taxes imposed
under the Corporation Tax Law pursuant to Section 23701a, 23701b,
23701d, 23701e, 23701f, 23701g, 23701k, 23701 l , or
23701w of the Revenue and Taxation Code. In lieu of a certificate
issued by the Franchise Tax Board, the License Official may refer to
the Franchise Tax Board's Internet Web site to verify that the
applicant is exempt from the payment of the taxes imposed under the
Corporation Tax Law.
(2) Other evidence as the License Official determines is necessary
to verify that the applicant is a duly organized mobilehome park
association of a mobilehome 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.
(d) 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 (l), except that fees paid
under those agreements shall not be determined as a percentage of
receipts or other revenues from, or be dependent on the outcome of,
the game.
(e) A violation of subdivision (d) shall be punishable by a fine
not to exceed ten thousand dollars ($10,000), which fine shall be
deposited in the general fund of the city, county, or city and county
that enacted the ordinance authorizing the remote caller bingo game.
A violation of any provision of this section, other than subdivision
(d), is a misdemeanor.
(f) The city, county, or city and county that enacted the
ordinance authorizing the remote caller bingo game, or the Attorney
General, may bring an action to enjoin a violation of this section.
(g) No minors shall be allowed to participate in any remote caller
bingo game.
(h) A remote caller bingo game shall include only sites that are
located within this state.
(i) 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.
(j) (1) All remote caller bingo games shall be open to the public,
and shall not be limited 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 or the President 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, for each participating
remote caller bingo site, the department and local law enforcement at
least 10 days' written notice of the intent to conduct that game.
(4) For each participating remote caller bingo site, an
organization authorized by the commission to conduct remote caller
bingo games shall provide the department and local law enforcement
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.
(I) A copy of the license issued to the organization by the
governing body of the city, county, or city and county pursuant to
subdivision (b).
(k) (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 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 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, if 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 those agreements shall be reasonable and shall
not be determined as a percentage of receipts or other revenues from,
or be dependent on the outcome of, the game.
(2) An organization that conducts a remote caller bingo game shall
designate a person as having fiduciary responsibility for the game.
( l ) 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 that game.
(m) An organization authorized to conduct a remote caller bingo
game pursuant to this section shall not have overhead costs exceeding
20 percent of gross sales, except that the limitations of this
section shall not apply to one-time, nonrecurring capital
acquisitions. For purposes of this subdivision, "overhead costs"
includes, but is not limited to, amounts paid for rent and equipment
leasing and the reasonable fees authorized to be paid to
administrative, managerial, technical, financial, and security
personnel employed by the organization pursuant to subdivision (d).
For the purpose of keeping its overhead costs below 20 percent of
gross sales, an authorized organization may elect to deduct all or a
portion of the fees paid to financial institutions for the use and
processing of credit card sales from the amount of gross revenues
awarded for prizes. In that case, the redirected fees for the use and
processing of credit card sales shall not be included in "overhead
costs" as defined in the California Remote Caller Bingo Act.
Additionally, fees paid to financial institutions for the use and
processing of credit card sales shall not be deducted from the
proceeds retained by the charitable organization.
(n) A person shall not be allowed to participate in a remote
caller bingo game unless the person is physically present at the time
and place where the remote caller bingo game is being conducted. A
person shall be deemed to be physically present at the place where
the remote caller bingo game is being conducted if he or she is
present at any of the locations participating in the remote caller
bingo game in accordance with this section.
(o) (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, but that game
shall have no 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, setting forth how the expenses and
proceeds of the game are to be allocated among the participating
organizations, the bank accounts into which all receipts are to be
deposited and from which all prizes are to be paid, and how game
records are to be maintained and subjected to annual audit.
(p) The value of prizes awarded during the conduct of any remote
caller bingo game shall not exceed 37 percent of the gross receipts
for that game. When an authorized organization elects to deduct fees
paid for the use and processing of credit card sales from the amount
of gross revenues for that game awarded for prizes, the maximum
amount of gross revenues that may be awarded for prizes shall not
exceed 37 percent of the gross receipts for that game, less the
amount of redirected fees paid for the use and processing of credit
card sales. Every remote caller bingo game shall be played until a
winner is declared. Progressive prizes are prohibited. The declared
winner of a remote caller bingo game shall provide his or her
identifying information and a mailing address to the onsite manager
of the remote caller bingo game. Prizes shall be paid only by check;
no cash prizes shall be paid. The organization conducting the remote
caller bingo game may issue a check to the winner at the time of the
game, or may send a check to the declared winner by United States
Postal Service certified mail, return receipt requested. All prize
money exceeding state and federal exemption limits on prize money
shall be subject to income tax reporting and withholding requirements
under applicable state and federal laws and regulations and those
reports and withholding shall be forwarded, within 10 business days,
to the appropriate state or federal agency on behalf of the winner. A
report shall accompany the amount withheld identifying the person on
whose behalf the money is being sent. Any game interrupted by a
transmission failure, electrical outage, or act of God shall be
considered void in the location that was affected. A refund for a
canceled game or games shall be provided to the purchasers.
(q) (1) The commission shall require the licensure of the
following:
(A) Any person who contracts to conduct remote caller bingo on
behalf of an organization described in subdivision (b) or who is
identified as having fiduciary responsibility for the game pursuant
to subdivision (k).
(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 organization described
in subdivision (b).
(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) Background investigations related to remote caller bingo
conducted by the department shall be in accordance 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 or the department.
(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 by a person described in
subparagraph (A) of paragraph (1) shall be submitted to the
department and accompanied by a nonrefundable fee.
(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 and
department relating to this section. Funds from the California Bingo
Fund shall be available to the commission and department 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 July 1, 2019.
(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 and department may assess and collect reasonable
fees and deposits as necessary to defray the costs of regulation and
oversight.
(D) Notwithstanding any other law, the loan authorized by
Provision 1 of Item 0855-001-0567 of the Budget Act of 2009, in the
amount of four hundred fifty-seven thousand dollars ($457,000), shall
be repaid no later than July 1, 2019.
(E) The licensing fee for any person or entity that 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 shall be in an amount determined by the
department, not to exceed the reasonable regulatory costs to the
department and in accordance with regulations adopted pursuant to
this chapter. Prior to the adoption of the regulations, the
nonrefundable license fee shall be the amount of the reasonable
regulatory costs to the department, not to exceed three thousand
dollars ($3,000) per year.
(r) The administrative, managerial, technical, financial, and
security personnel employed by an organization that conducts remote
caller bingo games shall apply for, obtain, and thereafter maintain
valid work permits, as defined in Section 19805 of the Business and
Professions Code.
(s) An organization that conducts remote caller bingo games shall
retain records in connection with the remote caller bingo game for
five years.
(t) (1) All equipment used for remote caller bingo shall be
certified as compliant with regulations adopted by the department by
a manufacturing expert recognized by the department. Certifications
shall be submitted to the department prior to the use of any
equipment subject to this subdivision.
(2) The department may monitor operation of the transmission and
other equipment used for remote caller bingo, and monitor the game.
(u) (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 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.
(v) A location shall not be eligible to participate in a remote
caller bingo game if bingo games are conducted at that location in
violation of Section 326.5 or any regulation adopted by the
commission pursuant to Section 19841 of the Business and Professions
Code, including, but not limited to, a location at which unlawful
electronic devices are used.
(w) (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 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 60 days of completion of the audit
report. A city, county, or city and county shall be provided a full
copy of the audit or an audit report upon request. 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 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.
(x) (1) The provisions of this section are severable. If any
provision of this section or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application.
(2) Notwithstanding paragraph (1), if paragraph (1) or (3) of
subdivision (u), or the application of either of those provisions, is
held invalid, this entire section shall be invalid.
(y) The department shall submit a report to the Legislature, on or
before January 1, 2016, on the fundraising effectiveness and
regulation of remote caller bingo, and other matters that are
relevant to the public interest regarding remote caller bingo.
(z) 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.
(aa) This section shall become inoperative on July 1, 2016, and,
as of January 1, 2017, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2017, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 121. Section 326.4 of the Penal Code is amended to read:
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
Department of Justice.
(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 Department of Justice 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.
SEC. 122. Section 326.5 of the Penal Code is amended to read:
326.5. (a) Neither the prohibition on gambling in this chapter
nor in Chapter 10 (commencing with Section 330) applies to any bingo
game that is conducted in a city, county, or city and county pursuant
to an ordinance enacted under Section 19 of Article IV of the State
Constitution, if the ordinance allows games to be conducted only in
accordance with this section and only by organizations exempted from
the payment of the bank and corporation tax by Sections 23701a,
23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701w, and 23701
l of the Revenue and Taxation Code and by mobilehome park
associations, senior citizens organizations, and charitable
organizations affiliated with a school district; and if the receipts
of those games are used only for charitable purposes.
(b) It is a misdemeanor for any person to receive or pay a profit,
wage, or salary from any bingo game authorized by Section 19 of
Article IV of the State Constitution. Security personnel employed by
the organization conducting the bingo game may be paid from the
revenues of bingo games, as provided in subdivisions (j) and (k).
(c) A violation of subdivision (b) shall be punishable by a fine
not to exceed ten thousand dollars ($10,000), which fine is deposited
in the general fund of the city, county, or city and county that
enacted the ordinance authorizing the bingo game. A violation of any
provision of this section, other than subdivision (b), is a
misdemeanor.
(d) The city, county, or city and county that enacted the
ordinance authorizing the bingo game may bring an action to enjoin a
violation of this section.
(e) 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
department. 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, 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 established by the department in regulations. 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.
SEC. 123. 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.
SEC. 124. 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 Office of Emergency Services for its costs in
administration of the "911" emergency telephone number system.
(d) To pay bills submitted to the Office of Emergency Services 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 Office of Emergency
Services.
SEC. 125. 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.
SEC. 126. 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.
SEC. 127. 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.
SEC. 128. 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.
SEC. 129. This act shall become operative on July 1, 2013, except
that Section 12 of this act, amending Section 5405 of the Civil Code,
shall become operative on January 1, 2014.
SEC. 130. 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.