AB 731, as introduced, Gallagher. Maintenance of the codes.
Existing law directs the Legislative Counsel to advise the Legislature from time to time as to legislation necessary to maintain the codes.
This bill would make nonsubstantive changes in various provisions of law to effectuate the recommendations made by the Legislative Counsel to the Legislature.
Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 125.3 of the Business and Professions
2Code, as added by Section 1 of Chapter 1059 of the Statutes of
31992, is repealed.
(a) Except as otherwise provided by law, in any order
5issued in resolution of a disciplinary proceeding before any board
6within the department or before the Osteopathic Medical Board,
7upon request of the entity bringing the proceeding may request the
8administrative law judge to direct a licentiate found to have
9committed a violation or violations of the licensing act to pay a
10sum not to exceed the reasonable costs of the investigation and
11enforcement of the case.
12(b) In the case of a disciplined licentiate that is a corporation or
13a partnership, the order may be made against the licensed corporate
14entity or licensed partnership.
P8 1(c) A certified copy of the actual costs, or a good faith estimate
2of costs where actual costs are not available, signed by the entity
3bringing the proceeding or its designated representative shall be
4prima facie evidence of reasonable costs of investigation and
5prosecution of the case. The costs shall include the amount of
6investigative and enforcement costs up to the date of the hearing,
7including, but not limited to, charges imposed by the Attorney
8General.
9(d) The administrative law judge shall make a proposed finding
10of the amount of reasonable costs of investigation and prosecution
11of the case when requested pursuant to subdivision (a). The finding
12of the administrative law judge with regard to costs shall not be
13reviewable by the board to increase the cost award. The board may
14reduce or eliminate the cost award, or remand to the administrative
15law judge where the proposed decision fails to make a finding on
16costs requested pursuant to subdivision (a).
17(e) Where an order for recovery of costs is made and timely
18payment is not made as directed in the board’s decision, the board
19may enforce the order for repayment in any appropriate court. This
20right of enforcement shall be in addition to any other rights the
21board may have as to any licentiate to pay costs.
22(f) In any action for recovery of costs, proof of the board’s
23decision shall be conclusive proof of the validity of the order of
24payment and the terms for payment.
25(g) (1) Except as provided in paragraph (2), the board shall not
26renew or reinstate the license of any licentiate who has failed to
27pay all of the costs ordered under this section.
28(2) Notwithstanding paragraph (1), the board may, in its
29discretion, conditionally renew or reinstate for a maximum of one
30year the license of any licentiate who demonstrates financial
31hardship and who enters into a formal agreement with the board
32to reimburse the board within that one-year period for the unpaid
33costs.
34(h) All costs recovered under this section shall be considered a
35reimbursement for costs incurred and shall be deposited in the
36fund of the board recovering the costs to be available upon
37appropriation by the Legislature.
38(i) Nothing in this section shall preclude a board from including
39the recovery of the costs of investigation and enforcement of a
40case in any stipulated settlement.
P9 1(j) This section does not apply to any board if a specific statutory
2provision in that board’s licensing act provides for recovery of
3costs in an administrative disciplinary proceeding.
The heading of Article 3.5 (commencing with Section
5316) of Chapter 4 of Division 1 of the Business and Professions
6Code is repealed.
7
Section 1626.5 of the Business and Professions Code,
11as added by Section 6 of Chapter 655 of the Statutes of 1999, is
12amended and renumbered to read:
In addition to the exemptions set forth in Section 1626,
15the operations by bona fide students of registered dental assisting,
16registered dental assisting in extended functions, and registered
17dental hygiene in extended functions in the clinical departments
18or the laboratory of an educational program or school approved
19by the board, including operations by unlicensed students while
20engaged in clinical externship programs that have been approved
21by an approved educational program or school, and that are under
22the general programmatic and academic supervision of that
23educational program or school, are exempt from the
operation of
24this chapter.
Section 1917.2 of the Business and Professions Code
26 is repealed.
(a) The committee shall license as a registered dental
28hygienist a third- or fourth-year dental student who is in good
29standing at an accredited California dental school and who satisfies
30the following requirements:
31(1) Satisfactorily performs on a clinical examination and an
32examination in California law and ethics as prescribed by the
33committee.
34(2) Satisfactorily completes a national written dental hygiene
35examination approved by the committee.
36(b) A dental student who is granted a registered dental hygienist
37license pursuant to this section may only
practice in a dental
38practice that serves patients who are insured under Denti-Cal, the
39Healthy Families Program, or other government programs, or a
40dental practice that has a sliding scale fee system based on income.
P10 1(c) Upon receipt of a license to practice dentistry pursuant to
2Section 1634, a registered dental hygienist license issued pursuant
3to this subdivision is automatically revoked.
4(d) The dental hygienist license is granted for two years upon
5passage of the dental hygiene examination, without the ability for
6renewal.
7(e) Notwithstanding subdivision (d), if a dental student fails to
8remain in good standing at an accredited California dental school,
9or fails to graduate from the dental program, a registered dental
10hygienist license issued pursuant to this section shall be revoked.
11The student shall be
responsible for submitting appropriate
12verifying documentation to the committee.
13(f) The provisions of this section shall be reviewed pursuant to
14Division 1.2 (commencing with Section 473). However, the review
15shall be limited to the fiscal feasibility and impact on the
16committee.
17(g) This section shall become inoperative as of January 1, 2014.
Section 4115 of the Business and Professions Code is
19amended to read:
(a) A pharmacy technician may perform packaging,
21manipulative, repetitive, or other nondiscretionarybegin delete tasks,end deletebegin insert tasksend insert only
22while assisting, and while under the direct supervision and control
23begin delete ofend deletebegin insert of,end insert a pharmacist. The pharmacist shall be responsible for the
24duties performed under his or her supervision by a technician.
25(b) This section does not authorize the performance of any tasks
26specified in
subdivision (a) by a pharmacy technician without a
27pharmacist on duty.
28(c) This section does not authorize a pharmacy technician to
29perform any act requiring the exercise of professional judgment
30by a pharmacist.
31(d) The board shall adopt regulations to specify tasks pursuant
32to subdivision (a) that a pharmacy technician may perform under
33the supervision of a pharmacist. Any pharmacy that employs a
34pharmacy technician shall do so in conformity with the regulations
35adopted by the board.
36(e) begin deleteNo end deletebegin insertA end insertperson shallbegin insert notend insert act as a
pharmacy technician without
37first being licensed by the board as a pharmacy technician.
38(f) (1) A pharmacy with only one pharmacist shall have no
39more than one pharmacy technician performing the tasks specified
40in subdivision (a). The ratio of pharmacy technicians performing
P11 1the tasks specified in subdivision (a) to any additional pharmacist
2shall not exceed 2:1, except that this ratio shall not apply to
3personnel performing clerical functions pursuant to Section 4116
4or 4117. This ratio is applicable to all practice settings, except for
5an inpatient of a licensed health facility, a patient of a licensed
6home health agency, as specified in paragraph (2), an inmate of a
7correctional facility of the Department of Corrections and
8Rehabilitation, and for a person receiving treatment in a facility
9operated by the State Department of State Hospitals, the State
10Department of Developmental Services, or the Department of
11Veterans
Affairs.
12(2) The board may adopt regulations establishing the ratio of
13pharmacy technicians performing the tasks specified in subdivision
14(a) to pharmacists applicable to the filling of prescriptions of an
15inpatient of a licensed health facility and for a patient of a licensed
16home health agency. Any ratio established by the board pursuant
17to this subdivision shall allow, at a minimum, at least one pharmacy
18technician for a single pharmacist in a pharmacy and two pharmacy
19technicians for each additional pharmacist, except that this ratio
20shall not apply to personnel performing clerical functions pursuant
21to Section 4116 or 4117.
22(3) A pharmacist scheduled to supervise a second pharmacy
23technician may refuse to supervise a second pharmacy technician
24if the pharmacist determines, in the exercise of his or her
25professional judgment, that permitting the second pharmacy
26technician to
be on duty would interfere with the effective
27performance of the pharmacist’s responsibilities under this chapter.
28A pharmacist assigned to supervise a second pharmacy technician
29shall notify the pharmacist in charge in writing of his or her
30determination, specifying the circumstances of concern with respect
31to the pharmacy or the pharmacy technician that have led to the
32determination, within a reasonable period, but not to exceed 24
33hours, after the posting of the relevant schedule.begin delete Noend deletebegin insert Anend insert entity
34employing a pharmacistbegin delete mayend deletebegin insert shall notend insert discharge, discipline, or
35otherwise discriminate against any pharmacist in the terms and
36conditions
of employment for exercising or attempting to exercise
37in good faith the right established pursuant to this paragraph.
38(g) Notwithstanding subdivisions (a) and (b), the board shall
39by regulation establish conditions to permit the temporary absence
40of a pharmacist for breaks and lunch periods pursuant to Section
P12 1512 of the Labor Code and the orders of the Industrial Welfare
2Commission without closing the pharmacy. During these temporary
3absences, a pharmacy technician may, at the discretion of the
4pharmacist, remain in the pharmacy but may only perform
5nondiscretionary tasks. The pharmacist shall be responsible for a
6pharmacy technician and shall review any task performed by a
7pharmacy technician during the pharmacist’s temporary absence.
8begin delete Nothing in thisend deletebegin insert Thisend insert
subdivision shallbegin insert notend insert be construed to authorize
9a pharmacist to supervise pharmacy technicians in greater ratios
10than those described in subdivision (f).
11(h) The pharmacist on duty shall be directly responsible for the
12conduct of a pharmacy technician supervised by that pharmacist.
13(i) In a health care facility licensed under subdivision (a) of
14Section 1250 of the Health and Safety Code, a pharmacy
15technician’s duties may include any of the following:
16(1) Packaging emergency supplies for use in the health care
17facility and the hospital’s emergency medical system or as
18authorized under Section 4119.
19(2) Sealing emergency containers
for use in the health care
20facility.
21(3) Performing monthly checks of the drug supplies stored
22throughout the health care facility. Irregularities shall be reported
23within 24 hours to the pharmacist in charge and the director or
24chief executive officer of the health care facility in accordance
25with the health care facility’s policies and procedures.
Section 4120 of the Business and Professions Code is
27amended to read:
(a) A nonresident pharmacy shall not sell or distribute
29dangerous drugs or dangerous devices in this state through any
30person orbegin delete mediaend deletebegin insert media,end insert other than a wholesaler or third-party
31logistics provider who has obtained a license pursuant to this
32chapter or through a selling or distribution outlet that is licensed
33as a wholesaler or third-party logistics provider pursuant to this
34begin delete chapterend deletebegin insert chapter,end insert without registering as a nonresident pharmacy.
35(b) Applications for a nonresident pharmacy registration shall
36be made on a form furnished by the board. The board may require
37any informationbegin delete asend delete the board deems reasonably necessary to carry
38out the purposes of this section.
39(c) The Legislature, by enacting this section, does not intend a
40license issued to any nonresident pharmacy pursuant to this section
P13 1to change or affect the tax liability imposed by Chapter 3
2(commencing with Section 23501) of Part 11 of Division 2 of the
3Revenue and Taxation Code on any nonresident pharmacy.
4(d) The Legislature, by enacting this section, does not intend a
5license issued to any nonresident pharmacy pursuant to this section
6to serve as any evidence that the nonresident pharmacy is doing
7business
within this state.
Section 4201 of the Business and Professions Code is
9amended to read:
(a) Each application to conduct a pharmacy, wholesaler,
11third-party logistics provider, or veterinary food-animal drug
12begin delete retailer,end deletebegin insert retailerend insert shall be made on a form furnished by thebegin delete board,end delete
13begin insert boardend insert and shall state the name, address, usual occupation, and
14professional qualifications, if any, of the applicant. If the applicant
15is other than a natural person, the application shall state the
16information as to each person beneficially interested therein.
17(b) As used in this section, and subject to subdivision (c), the
18term “person beneficially interested” means and includes:
19(1) If the applicant is a partnership or other unincorporated
20association, each partner or member.
21(2) If the applicant is a corporation, each of its officers, directors,
22and stockholders, provided thatbegin delete noend deletebegin insert aend insert natural person shallbegin insert notend insert be
23deemed to be beneficially interested in a nonprofit corporation.
24(3) If the applicant is a limited
liability company, each officer,
25manager, or member.
26(c) If the applicant is a partnership or other unincorporated
27association, a limited liability company, or a corporation, and the
28number of partners, members, or stockholders, as the case may
29be, exceeds five, the application shall so state, and shall further
30state the information required by subdivision (a) as to each of the
31five partners, members, or stockholders who own the five largest
32interests in the applicant entity. Upon request by the executive
33officer, the applicant shall furnish the board with the information
34required by subdivision (a) as to partners, members, or stockholders
35not named in the application, or shall refer the board to an
36appropriate source of that information.
37(d) The application shall contain a statement to the effect that
38the applicant has not been convicted of a felony and has not
39violated any of
the provisions of this chapter. If the applicant
40cannot make this statement, the application shall contain a
P14 1statement of the violation, if any, or reasons which will prevent
2the applicant from being able to comply with the requirements
3with respect to the statement.
4(e) Upon the approval of the application by the board and
5payment of the fee required by this chapter for each pharmacy,
6wholesaler, third-party logistics provider, or veterinary food-animal
7drug retailer, the executive officer of the board shall issue a license
8to conduct a pharmacy, wholesaler, third-party logistics provider,
9or veterinary food-animal drugbegin delete retailer,end deletebegin insert
retailerend insert if all of the
10provisions of this chapter have been complied with.
11(f) Notwithstanding any other law, the pharmacy license shall
12authorize the holder to conduct a pharmacy. The license shall be
13renewed annually and shall not be transferable.
14(g) Notwithstanding any other law, the wholesaler license shall
15authorize the holder to wholesale dangerous drugs and dangerous
16devices. The license shall be renewed annually and shall not be
17transferable.
18(h) Notwithstanding any other law, the third-party logistics
19provider license shall authorize the holder to provide or coordinate
20warehousing, distribution, or other similar services of dangerous
21drugs and dangerous devices. The license shall be renewed annually
22and shall not be transferable.
23(i) Notwithstanding any other law, the veterinary food-animal
24drug retailer license shall authorize the holder to conduct a
25veterinary food-animal drug retailer and to sell and dispense
26veterinary food-animal drugs as defined in Section 4042.
27(j) For licenses referred to in subdivisions (f), (g), (h), and (i),
28any change in the proposed beneficial ownership interest shall be
29reported to the board within 30 days thereafter upon a form to be
30furnished by the board.
Section 4945 of the Business and Professions Code,
32as amended by Section 15 of Chapter 983 of the Statutes of 1991,
33is repealed.
(a) The committee shall establish standards for
35continuing education for acupuncturists.
36(b) The committee shall require each acupuncturist to complete
3715 hours of continuing education every year as a condition for
38renewal of his or her certificate. A provider of continuing education
39shall apply to the committee for approval to offer continuing
40education courses for credit toward this requirement on a form
P15 1developed by the committee, shall pay a fee covering the cost of
2approval and for the monitoring of the provider by the committee
3and shall set forth the following information on the application:
4(1) Course content.
5(2) Test criteria.
6(3) Hours of continuing education credit requested for the
7course.
8(4) Experience and training of instructors.
9(5) Other information as required by the committee.
10(6) That interpreters or bilingual instruction will be made
11available, when necessary.
12(c) Licensees residing out of state or out of the country shall
13comply with the continuing education requirements.
14(d) Providers of continuing education shall be monitored by the
15committee as determined by the committee.
16(e) If the committee determines that any acupuncturist has not
17obtained the required number of hours of continuing education, it
18may renew the acupuncturist’s license and require that the deficient
19hours of continuing education be made up during the following
20renewal period in addition to the current continuing education
21required for that period. If any acupuncturist fails to make up the
22deficient hours and complete the current requirement of hours of
23continuing education during the subsequent renewal period, then
24his or her license to practice acupuncture shall not be renewed
25until all the required hours are completed and documented to the
26committee.
27(f) This section shall remain in effect only until January 1, 1996,
28and shall have no force or effect on or after that date, unless a later
29enacted statute, which is enacted before January 1, 1996, deletes
30or extends that date.
Section 5082.5 of the Business and Professions Code,
32as added by Section 10 of Chapter 704 of the Statutes of 2001, is
33repealed.
The board may give credit to a candidate who has
35passed all or part of the examination in another state or territory,
36if the members of the board determine that the standards under
37which the examination was held are as high as the standards
38established for examination in this chapter.
Section 5095 of the Business and Professions Code,
2as added by Section 20 of Chapter 704 of the Statutes of 2001, is
3repealed.
(a) To be authorized to sign reports on attest
5engagements, a licensee shall complete a minimum of 500 hours
6of experience, satisfactory to the board, in attest services.
7(b) To be qualifying under this section, attest experience shall
8have been performed in accordance with applicable professional
9standards. Experience in public accounting shall be completed
10under the supervision or in the employ of a person licensed or
11otherwise having comparable authority under
the laws of any state
12or country to engage in the practice of public accountancy and
13provide attest services, and this experience shall be verified.
14Experience in private or governmental accounting or auditing shall
15be completed under the supervision of an individual licensed by
16a state to engage in the practice of public accountancy and perform
17attest services, and this experience shall be verified. An applicant
18may be required to present work papers or other evidence
19substantiating that the applicant has met the requirements of this
20section and applicable regulations.
21(c) An individual who qualified for licensure by meeting the
22requirements of Section 5083 shall be deemed to have satisfied
23the requirements of this section.
24(d) The board shall adopt regulations to implement this section,
25including, but not limited to, a procedure for applicants under
26Section 5092 or Section 5093
to qualify under this section.
Section 7000.6 of the Business and Professions Code,
28as added by Section 27 of Chapter 107 of the Statutes of 2002, is
29repealed.
Protection of the public shall be the highest priority
31for the Contractors’ State License Board in exercising its licensing,
32regulatory, and disciplinary functions. Whenever the protection
33of the public is inconsistent with other interests sought to be
34promoted, the protection of the public shall be paramount.
Section 7588.2 of the Business and Professions Code,
36as added by Section 3 of Chapter 689 of the Statutes of 2002, is
37amended and renumbered to read:
(a) A peace officer of this state or a political
40subdivision thereof who engages in off-duty employment solely
P17 1and exclusively as a security guard or security officer, and who is
2required to be registered as a security guard or security officer
3pursuant to this chapter, shall only be subject to the fees required
4by subdivision (h) of Section 7588.
5(b) A peace officer shall also be subject to the fees required by
6paragraphs (1) and (2) of subdivision (i) of Section 7588 if the
7peace officer carries or uses a firearm as part of the
off-duty
8employment and has not received approval of his or her primary
9employer, as defined in paragraph (2) of subdivision (i) of Section
107583.9, to carry a firearm while working as a security guard or
11security officer, and has not submitted verification of that approval
12to the bureau pursuant to subdivision (i) of Section 7583.9.
Section 7590.2 of the Business and Professions Code
14 is amended to read:
(a) An “alarm company operator” means a person
16who, for any consideration whatsoever, engages in business or
17accepts employment to install, maintain, alter, sell on premises,
18monitor, or service alarm systems or who responds to alarm
19systems except for any alarm agent. “Alarm company operator,”
20includes any entity that is retained by a licensed alarm company
21operator, a customer, or any other person or entity, to monitor one
22or more alarm systems, whether or not the entity performs any
23other duties within the definition of an alarm company operator.
24The provisions of this chapter, to the extent that they can be made
25applicable, shall be applicable to the duties and functions performed
26in monitoring alarm systems.
27(b) A person licensed as an alarm company operatorbegin delete mayend deletebegin insert
shallend insert
28 not conduct any investigation or investigations except those that
29are incidental to personal injury, or the theft, loss, embezzlement,
30misappropriation, or concealment of any property, or any other
31thing enumerated in this section, which he or she has been hired
32or engaged to protect.
33(c) A person who is licensed, certified, or registered pursuant
34to this chapter is exempt from locksmithing requirements, pursuant
35to subdivision (e) of Section 6980.12, if the duties performed that
36constitute locksmithing are performed in combination with the
37installation, maintenance, moving, repairing, replacing, servicing,
38or reconfiguration of an alarm system, as defined in subdivision
39(n) of Section 7590.1, and limited to work on electronic locks or
P18 1access control devices that are controlled by an alarm system
2control device, including the removal of existing hardware.
Section 8538 of the Business and Professions Code
4 is amended to read:
(a) A registered structural pest control company shall
6provide the owner, or owner’s agent, and tenant of the premises
7for which the work is to be done with clear written notice which
8contains the following statements and information using words
9with common and everyday meaning:
10(1) The pest to be controlled.
11(2) The pesticide or pesticides proposed to bebegin delete used,end deletebegin insert usedend insert and
12the active ingredient or ingredients.
13(3) “State law requires that you be given
the following
14information: CAUTION--PESTICIDES ARE TOXIC
15CHEMICALS. Structural Pest Control Companies are registered
16and regulated by the Structural Pest Control Board, and apply
17pesticides which are registered and approved for use by the
18begin delete Californiaend delete Department of Pesticide Regulation and the United
19States Environmental Protection Agency. Registration is granted
20when the state finds that, based on existing scientific evidence,
21there are no appreciable risks if proper use conditions are followed
22or that the risks are outweighed by the benefits. The degree of risk
23depends upon the degree of exposure, so exposure should be
24minimized.
25“If within 24 hours following application you experience
26symptoms similar to common seasonal illness comparable to the
27flu, contact your physician or poison control center (telephone
28number) and your pest control company immediately.” (This
29statement shall be
modified to include any other symptoms of
30overexposure which are not typical of influenza.)
31“For further information, contact any of the following: Your
32Pest Control Company (telephone number); for Health
33Questions--the County Health Department (telephone number);
34for Application Information--the County Agricultural
35Commissioner (telephone number), and for Regulatory
36Information--the Structural Pest Control Board (telephone number
37and address).”
38(4) If a contract for periodic pest control has been executed, the
39frequency with which the treatment is to be done.
P19 1(b) In the case of Branch 1 applications, the notice prescribed
2by subdivision (a) shall be provided at least 48 hours prior to
3application unless fumigation follows inspection by less than 48
4hours.
5In the case of Branch 2 or Branch 3
registered company
6applications, the notice prescribed by subdivision (a) shall be
7provided no later than prior to application.
8In either case, the notice shall be given to the owner, or owner’s
9agent, and tenant, if there is a tenant, in at least one of the following
10ways:
11(1) First-class or electronic mail, if an electronicbegin delete mailingend deletebegin insert
mailend insert
12 address has been provided.
13(2) Posting in a conspicuous place on the real property.
14(3) Personal delivery.
15If the building is commercial or industrial, a notice shall be
16posted in a conspicuous place, unless the owner or owner’s agent
17objects, in addition to any other notification required by this
18section.
19The notice shall only be required to be provided at the time of
20the initial treatment if a contract for periodic service has been
21executed. If the pesticide to be used is changed, another notice
22shall be required to be provided in the manner previously set forth
23herein.
24(c) Any person or licensee who, or registered company which,
25violates any provision of this section is guilty of a
misdemeanor
26begin delete and isend delete punishable as set forth in Section 8553.
Section 12518 of the Business and Professions Code
28 is amended to read:
A water submeter submitted to a sealer by an owner,
30user, or operator for inspection and testing before its initial
31installation that is found to be incorrect, as defined inbegin insert subdivision
32(d) ofend insert Section 12500, shall be marked with thebegin delete words,end deletebegin insert wordsend insert “Out
33of Order,” in accordance with Section 12506, and shall be returned
34to a service agent only if both of the following conditions are met:
35(a) The water submeter has no signs of intentional tampering
36by which to facilitate fraud.
37(b) The water submeterbegin delete shallend deletebegin insert isend insert notbegin delete beend delete placed into service in
38California.
Section 17530.6 of the Business and Professions
40Code is repealed.
(a) Any person, including an individual, firm,
2corporation, association, partnership, or joint venture, or any
3employee or agent thereof, shall dispose of any of the information
4described in Section 17530.5 in a manner including, but not limited
5to, burning, shredding, electronic deleting, or other appropriate
6means, so that the identity of the taxpayer may not be determined
7from the disposed information alone or in combination with other
8
publicly available information. A violation of this section
9constitutes a misdemeanor.
10(b) This section shall not become operative if Assembly Bill
112246 of the 1999-2000 Regular Session is enacted and becomes
12effective on or before January 1, 2001.
Section 17550.42 of the Business and Professions
14Code, as added by Section 11 of Chapter 196 of the Statutes of
152003, is amended and renumbered to read:
(a) Within 30 days of the close of the fiscal year
18or other reasonable period established by the board of directors,
19the Travel Consumer Restitution Corporation shall make publicly
20available a statement of the following information concerning the
21most recently concluded fiscal year:
22(1) The number of claims and approximate dollar amount of
23the claims received.
24(2) The total number of claims and total dollar amount of claims
25paid.
26(3) The approximate number and dollar amount of claims denied
27or abandoned.
28(4) The dollar balance in the restitution fund.
29(5) The amount of assessments received from participants and
30the operating and administrative costs and expenses of the
31corporation.
32(6) The number of new participants and the amount of
33assessments received from them.
34(b) The Travel Consumer Restitution Corporation shall make
35publicly available within 15 days of the board of directors’
36approval, or other reasonable period established by the board of
37directors, the following information:
38(1) The approved minutes of meetings of the board of directors.
P21 1(2) The approved estimated annual operational budget projecting
2the costs of operations and administration for the succeeding fiscal
3year, excluding the amount to be paid for claims.
4(3) The approved bylaws, as amended, of the Travel Consumer
5Restitution Corporation.
6(c) Information may be made publicly available as required by
7this section by disseminating the information on an Internet Web
8site or providing the information by electronic mail to any person
9who has requested the information and provided a valid electronic
10mail address.
Section 18897.8 of the Business and Professions
12Code, as added by Section 2 of Chapter 857 of the Statutes of
131996, is repealed.
(a) Any professional athlete, or any student athlete,
15or any elementary or secondary school, college, university, or other
16educational institution, or any league, conference, association, or
17federation of the preceding educational institutions, or any other
18person may bring a civil action for recovery of damages from an
19athlete agent, if that professional athlete, that student athlete, that
20institution, any member of that league, conference, association, or
21federation, or that other person is adversely affected by the acts
22of the athlete agent or of the athlete agent’s representative or
23employee in violation of this chapter. A student athlete is presumed
24to be adversely affected by the acts of an athlete agent,
25representative or employee in violation of this chapter if, because
26of those acts, the student athlete is suspended or disqualified from
27participation in one or more interscholastic or intercollegiate sports
28events by or pursuant to the rules of a state or national federation
29or association for the promotion and regulation of interscholastic
30or intercollegiate sports, or suffers financial damage, or suffers
31both suspension or disqualification and financial damage. An
32educational institution is presumed to be adversely affected by the
33acts of an athlete agent or of an athlete agent’s representative or
34employee in violation of this chapter if, because of those acts, the
35educational institution, or one or more student athletes admitted
36to or enrolled in the educational institution, is suspended or
37disqualified from participation in one or more interscholastic or
38intercollegiate athletic events by or pursuant to the rules of a state
39or national federation or association for the promotion and
40regulation of interscholastic or intercollegiate sports events by or
P22 1pursuant to the rules of a state or national federation or association
2for the promotion and regulation of interscholastic or intercollegiate
3sports, or suffers financial damage, or suffers both suspension or
4disqualification and financial damage.
5(b) A plaintiff that prevails in a civil action brought under this
6section may recover actual damages, or fifty thousand dollars
7($50,000), whichever is higher; punitive damages; court costs; and
8reasonable attorney’s fees. An athlete agent found liable under this
9section is also subject to forfeiture of any right of repayment for
10anything of benefit or value provided to a student athlete, and shall
11refund any consideration paid to that athlete agent by or on behalf
12of the student athlete.
13(c) It is the intent of the Legislature in enacting this section to
14encourage enforcement of this chapter through private civil actions.
Section 19556 of the Business and Professions Code
16 is amended to read:
(a) The distribution shall be made by the distributing
18agent to beneficiaries qualified under this article. For purposes of
19this article, a beneficiary shall be all of the following:
20(1) A nonprofit corporation or organization entitled by law to
21receive a distribution made by a distributing agent.
22(2) Exempt or entitled to an exemption from taxes measured by
23income imposed by this state and the United States.
24(3) Engaged in charitable, benevolent, civic, religious,
25educational, or veterans’ work similar to that of agencies
26recognized by an organized community chest in the State of
27California, except that the funds so distributed may be
used by the
28beneficiary for capital expenditures.
29(4) Approved by the board.
30(b) At least 30 percent of the distribution shall be made to
31charities associated with the horse racing industry. In addition to
32this 30 percent of the distribution, another 5 percent of the
33distribution shall be paid to a welfare fund described in subdivision
34(b) of Section 19641 and another 5 percent of the distribution shall
35be paid to a nonprofit corporation, the primary purpose of which
36is to assist horsemen and backstretch personnel who are being
37affected adversely as a result of alcohol or substance abuse.begin delete Noend deletebegin insert Aend insert
38 beneficiary otherwise qualified under this section to receive charity
39day net proceeds shallbegin insert
notend insert be excluded on the basis that the
40beneficiary provides charitable benefits to persons connected with
P23 1the care, training, and running of racehorses, except thatbegin insert thisend insert type
2of beneficiary shall make an accounting to the board within one
3calendar year of the date of receipt of any distribution.
4(c) (1) In addition to the distribution pursuant to subdivision
5(b), a separate 20 percent of the distribution shall be made to a
6nonprofit corporation or trust, the directors or trustees of which
7shall serve without compensation except for reimbursement for
8reasonable expenses, and that has as its sole purpose the
9accumulation of endowment funds, the incomebegin delete onend deletebegin insert
ofend insert which shall
10be distributed to qualified disabled jockeys.
11(2) To receive a distribution under this subdivision, a nonprofit
12corporation or trustbegin delete mustend deletebegin insert shallend insert establish objective qualifications
13for disabledbegin delete jockeys,end deletebegin insert jockeysend insert and provide an annual accounting
14and report to the board on its activities indicating compliance with
15the requirements of this subdivision.
16(3) The nonprofit corporation or trust shall, in an amount
17proportional to the contributions received
pursuant to this
18subdivision as a percentage of the total contributions received by
19thebegin insert nonprofitend insert
corporation or trust, give preference in assisting
20qualified disabled jockeysbegin delete to the following:end deletebegin insert
who meet either of the
21following criteria:end insert
22(A) Jockeys who were disabled while participating in the racing
23or training of horses at licensed racing associations or approved
24training facilities in California.
25(B) Jockeys licensed by the board who were disabled while
26participating in the racing or training of horses in a state other than
27California.
28(d) When the nonprofit corporation or trust described in
29subdivision (c) has received distributions in an amount equal to
30two million dollars ($2,000,000), the distribution mandated by
31subdivision (c) shall cease.
Section 19599 of the Business and Professions Code
33 is amended to read:
An association or fair may offer any form of parimutuel
35wagering, as defined by regulations adopted by the board, or as
36defined by Chapter 4, Pari-Mutuel Wagering, Model Rules of
37Racing, as published by the Association of Racing Commissioners
38International. The board may prohibit any form of parimutuel
39wagering if it determines that the proposed wagering would
40compromise the honesty and integrity of racing in the state. Each
P24 1racing association or fair shall include the types ofbegin delete conventional begin insert conventional, exotic,end insert and other wagering it proposes to offer
2exoticend delete
3on its application to conduct a horse racing meeting.
Section 19605.7 of the Business and Professions
5Code is amended to read:
The total percentage deducted from wagers at satellite
7wagering facilities in the northern zone shall be the same as the
8deductions for wagers at the racetrack where the racing meeting
9is being conducted and shall be distributed as set forth in this
10section. Amounts deducted under this section shall be distributed
11as follows:
12(a) (1) For thoroughbred meetings, 1.3 percent of the amount
13handled by the satellite wagering facility on conventional and
14exotic wagers shall be distributed to the racing association for
15payment to the state as a license fee, 2 percent shall be distributed
16to the satellite wagering facility as a commission for the right to
17dobegin delete business,end deletebegin insert
businessend insert as a franchise,begin delete and this commission isend deletebegin insert butend insert
18 not for the use of any real property, 0.54 percent shall be deposited
19with the official registering agency pursuant to subdivision (a) of
20Section 19617.2 and shall thereafter be distributed in accordance
21with subdivisions (b),begin delete (c)end deletebegin insert (c),end insert and (d) of Section 19617.2, 0.033
22percent shall be distributed to the Center for Equine Health, and
230.067 percent shall be distributed to the California Animal Health
24and Food Safety Laboratory, School of Veterinary Medicine,
25University of California at Davis. It is the intent of the Legislature
26that the 0.033
percent of funds distributed to the Center for Equine
27Health shall supplement, and not supplant, other funding sources.
28(2) (A) In addition to the distributions specified in paragraph
29(1), for thoroughbred meetings, an amount not to exceed 4 percent
30of the amount handled by the satellite wagering facility on
31conventional and exotic wagers shall be distributed to an
32organization described in Section 19608.2 with the mutual consent
33of the racing association, the organization representing the
34horsemen participating in the meeting, and the board from January
351, 2010, until December 31, 2016. However, the amount shallbegin insert notend insert
36 bebegin delete noend delete less than that specified in subparagraph (B), and any amount
37greater than the amount specified in subparagraph
(B) shall be
38approved by the board for no more than 12 months at a time, and
39only upon a determination by the board that the greater amount is
40in the economic interest of thoroughbred racing.
P25 1(B) Commencing January 1, 2017, an amount not to exceed the
2amount of actual operating expenses, as determined by the board,
3or 2.5 percent of the amount handled by the satellite wagering
4facility on conventional and exotic wagers, whichever is less, shall
5be distributed to an organization described in Section 19608.2.
6(C) A request to the board for a distribution pursuant to
7subparagraph (A) shall be accompanied by a report detailing all
8receipts and expenditures over the two prior fiscal years of the
9funds affected by the request.
10(D) The racing association whose request pursuant to
11subparagraph (A) has been approved by the
board shall provide
12subsequent quarterly reports of receipts and expenditures of the
13affected funds if requested by the board.
14(b) For harness, quarter horse, Appaloosa, Arabian, or mixed
15breed meetings, 0.4 percent of the amount handled by the satellite
16wagering facility on conventional and exotic wagers shall be
17distributed to the racing association for payment to the state as a
18license fee, for fair meetings, 1 percent of the amount handled by
19the satellite wagering facility on conventional and exotic wagers
20shall be distributed to the fair association for payment to the state
21as a license fee, 2 percent shall be distributed to the satellite
22wagering facility as a commission for the right to dobegin delete business,end delete
23begin insert businessend insert as a franchise,begin delete and this commission isend deletebegin insert
butend insert not for the use
24of any real property, and 6 percent of the amount handled by the
25satellite wagering facility or the amount of actual operating
26expenses, as determined by the board, whichever is less, shall be
27distributed to an organization described in Section 19608.2. In
28addition, in the case of quarter horses, 0.4 percent shall be
29deposited with the official registering agency pursuant to
30subdivision (b) of Section 19617.7 and shall thereafter be
31distributed in accordance with subdivisions (c), (d), and (e) of
32Section 19617.7; in the case of Appaloosas, 0.4 percent shall be
33deposited with the official registering agency pursuant to
34subdivision (b) of Section 19617.9 and shall thereafter be
35distributed in accordance with subdivisions (c), (d), and (e) of
36Section 19617.9; in the case of Arabians, 0.4 percent shall be held
37by the association to be deposited with the official registering
38agency pursuant to Section 19617.8, and shall thereafter be
39distributed in
accordance with Section 19617.8; in the case of
40standardbreds, 0.4 percent shall be distributed for the California
P26 1Standardbred Sires Stakes Program pursuant to Section 19619; in
2the case of thoroughbreds, 0.48 percent shall be deposited with
3the official registering agency pursuant to subdivision (a) of Section
419617.2 and shall thereafter be distributed in accordance with
5subdivisions (b), (c), and (d) of Section 19617.2; 0.033 percent
6shall be distributed to the Center for Equine Health; and 0.067
7percent shall be distributed to the California Animal Health and
8Food Safety Laboratory, School of Veterinary Medicine, University
9of California at Davis. It is the intent of the Legislature that the
100.033 percent of funds distributed to the Center for Equine Health
11shall supplement, and not supplant, other funding sources.
12(c) In addition to the distributions specified in subdivisions (a)
13and (b), for mixed breed meetings, 1 percent of the total
amount
14handled by each satellite wagering facility shall be distributed to
15an organization described in Section 19608.2 for promotion of the
16program at satellite wagering facilities. For harness meetings, 0.5
17percent of the total amount handled by each satellite wagering
18facility shall be distributed to an organization described in Section
1919608.2 for the promotion of the program at satellite wagering
20facilities, and 0.5 percent of the total amount handled by each
21satellite wagering facility shall be distributed according to a written
22agreement for each race meeting between the licensed racing
23association and the organization representing the horsemen
24participating in the meeting. If, with respect to harness meetings,
25there are funds unexpended from this 1 percent, these funds may
26be expended for other purposes with the consent of the horsemen
27and the racing association to benefit the horsemen, or the racing
28association, or both, pursuant to their agreement. For quarter horse
29meetings, 0.5 percent of the
total amount handled by each satellite
30wagering facility on races run in California shall be distributed to
31an organization described in Section 19608.2 for the promotion
32of the program at satellite wagering facilities, 0.5 percent of the
33total amount handled by each satellite wagering facility on
34out-of-state and out-of-country imported races shall be distributed
35to the official quarter horse registering agency for the purposes of
36Section 19617.75, and 0.5 percent of the total amount handled by
37each satellite wagering facility on all races shall be distributed
38according to a written agreement for each race meeting between
39the licensed racing association and the organization representing
40the horsemen participating in the meeting.
P27 1(d) Additionally, for thoroughbred, harness, quarter horse, mixed
2breed, and fair meetings, 0.33 percent of the total amount handled
3by each satellite wagering facility shall be paid to the city or county
4in which the
satellite wagering facility is located pursuant to
5Section 19610.3 or 19610.4.
6(e) Notwithstanding any other law, a racing association is
7responsible for the payment of the state license fee as required by
8this section.
Section 25350 of the Business and Professions Code
10 is amended to read:
The department may seize the following alcoholic
12beverages:
13(a) Alcoholic beverages manufactured or produced in this State
14by any person other than licensed manufacturer or wine grower,
15regardless of where found.
16(b) Beer and wine upon the sale of which the excise tax imposed
17by Part 14begin insert (commencing with Section 32001)end insert of Division 2 of the
18Revenue and Taxation Code has not been paid, regardless of where
19found.
20(c) Distilled spirits except (1) distilled spirits located upon
21premises for which
licenses authorizing the sale of the distilled
22spirits have been issued; (2) distilled spirits consigned to and in
23the course of transportation to a licensee holding licenses
24authorizing the sale of the distilled spirits or for delivery without
25this State; (3) distilled spirits upon the sale of which the excise
26tax imposed by Part 14begin insert (commencing with Section 32001)end insert of
27Division 2 of the Revenue and Taxation Code has been paid;
28(4) alcohol or distilled spirits in the possession of a person who
29has lawfully purchased it for use in the trades, professions, or
30industries and not for beverage use.
31(d) Any alcoholic beverage possessed, kept, stored, or owned
32with the intent to sell it without a license in violation of this
33division.
34(e) Notwithstanding any other provision of this section, any
35alcoholic beverage acquired, exchanged, purchased, sold, delivered,
36or possessed in violation of Sections 23104.2, 23104.3, 23394,
3723402,begin delete or 24879, or Chapter 10 (commencing with Section 24749),
orbegin insert Chapterend insert 12 (commencing
3811 (commencing with Section 24850),end delete
39with Sectionbegin delete 25000) of this division,end deletebegin insert 25000),end insert except that seizures
40under this subdivision shall be limited to the actual package or
P28 1case of alcoholic beverage acquired, exchanged, purchased, sold,
2delivered, or possessed in violation of the foregoing provisions.
3Any seizure under this subdivision shall not exceed one hundred
4dollars ($100) of alcoholic beverages at retail price.
Section 25503.6 of the Business and Professions
6Code is amended to read:
(a) Notwithstanding any other provision of this
8chapter, a beer manufacturer, the holder of a winegrower’s license,
9a distilled spirits rectifier, a distilled spirits manufacturer, or
10distilled spirits manufacturer’s agent may purchase advertising
11space and time from, or on behalf of, an on-sale retail licensee
12subject to all of the following conditions:
13(1) The on-sale licensee is the owner, manager, agent of the
14owner, assignee of the owner’s advertising rights, or the major
15tenant of the owner of any of the following:
16(A) An outdoor stadium or a fully enclosed arena with a fixed
17seating capacity in excess of 10,000 seats located in Sacramento
18County or Alameda County.
19(B) A fully enclosed arena with a fixed seating capacity in
20excess of 18,000 seats located in Orange County or Los Angeles
21County.
22(C) An outdoor stadium or fully enclosed arena with a fixed
23seating capacity in excess of 8,500 seats located in Kern County.
24(D) An exposition park of not less than 50 acres that includes
25an outdoor stadium with a fixed seating capacity in excess of 8,000
26seats and a fully enclosed arena with an attendance capacity in
27excess of 4,500 people, located in San Bernardino County.
28(E) An outdoor stadium with a fixed seating capacity in excess
29of 10,000 seats located in Yolo County.
30(F) An outdoor stadium and a fully enclosed arena with fixed
31seating capacities in
excess of 10,000 seats located in Fresno
32County.
33(G) An athletic and entertainment complex of not less than 50
34acres that includes within its boundaries an outdoor stadium with
35a fixed seating capacity of at least 8,000 seats and a second outdoor
36stadium with a fixed seating capacity of at least 3,500 seats located
37within Riverside County.
38(H) An outdoor stadium with a fixed seating capacity in excess
39of 1,500 seats located in Tulare County.
P29 1(I) A motorsports entertainment complex of not less than 50
2acres that includes within its boundaries an outdoor speedway with
3a fixed seating capacity of at least 50,000 seats, located within San
4Bernardino County.
5(J) An exposition park, owned or operated by a bona fide
6nonprofit organization, of not less than 400
acres with facilities
7including a grandstand with a seating capacity of at least 8,000
8people, at least one exhibition hall greater than 100,000 square
9feet, and at least four exhibition halls, each greater than 30,000
10square feet, located in the City of Pomona or the City of La Verne
11in Los Angeles County.
12(K) An outdoor soccer stadium with a fixed seating capacity of
13at least 25,000 seats, an outdoor tennis stadium with a fixed
14capacity of at least 7,000 seats, an outdoor track and field facility
15with a fixed seating capacity of at least 7,000 seats, and an indoor
16velodrome with a fixed seating capacity of at least 2,000 seats, all
17located within a sports and athletic complex built before January
181, 2005, within the City of Carson in Los Angeles County.
19(L) An outdoor professional sports facility with a fixed seating
20capacity of at least 4,200 seats located within San Joaquin
County.
21(M) A fully enclosed arena with a fixed seating capacity in
22excess of 13,000 seats in the City of Inglewood.
23(N) (i) An outdoor stadium with a fixed seating capacity of at
24least 68,000 seats located in the City of Santa Clara.
25(ii) A beer manufacturer, the holder of a winegrower’s license,
26a distilled spirits rectifier, a distilled spirits manufacturer, or
27distilled spirits manufacturer’s agent may purchase advertising
28space and time from, or on behalf of, a major tenant of an outdoor
29stadium described in clause (i), provided the major tenant does not
30hold a retail license, and the advertising may include the placement
31of advertising in an on-sale licensed premises operated at the
32outdoor stadium.
33(2) The outdoor stadium or
fully enclosed arena described in
34paragraph (1) is not owned by a community college district.
35(3) The advertising space or time is purchased only in connection
36with the events to be held on the premises of the exposition park,
37stadium, or arena owned by the on-sale licensee. With respect to
38an exposition park as described in subparagraph (J) of paragraph
39(1) that includes at least one hotel, the advertising space or time
40shall not be displayed on or in any hotel located in the exposition
P30 1park, or purchased in connection with the operation of any hotel
2located in the exposition park.
3(4) The on-sale licensee serves other brands of beer distributed
4by a competing beer wholesaler in addition to the brand
5manufactured or marketed by the beer manufacturer, other brands
6of wine distributed by a competing wine wholesaler in addition to
7the brand produced by the winegrower, and other
brands of distilled
8spirits distributed by a competing distilled spirits wholesaler in
9addition to the brand manufactured or marketed by the distilled
10spirits rectifier, the distilled spiritsbegin delete manufacturerend deletebegin insert manufacturer,end insert or
11the distilled spirits manufacturer’s agent that purchased the
12advertising space or time.
13(b) Any purchase of advertising space or time pursuant to
14subdivision (a) shall be conducted pursuant to a written contract
15entered into by the beer manufacturer, the holder of the
16winegrower’s license, the distilled spirits rectifier, the distilled
17spirits manufacturer, or the distilled spirits manufacturer’s agent
18and the on-sale licensee, or with respect to clause (ii) of
19subparagraph (N) of paragraph (1) of subdivision (a), the major
20tenant of the
outdoor stadium.
21(c) Any beer manufacturer or holder of a winegrower’s license,
22any distilled spirits rectifier, any distilled spirits manufacturer, or
23any distilled spirits manufacturer’s agent who, through coercion
24or other illegal means, induces, directly or indirectly, a holder of
25a wholesaler’s license to fulfill all or part of those contractual
26obligations entered into pursuant to subdivision (a) or (b) shall be
27guilty of a misdemeanor and shall be punished by imprisonment
28in the county jail not exceeding six months, or by a fine in an
29amount equal to the entire value of the advertising space, time, or
30costs involved in the contract, whichever is greater, plus ten
31thousand dollars ($10,000), or by both imprisonment and fine. The
32person shall also be subject to license revocation pursuant to
33Section 24200.
34(d) Any on-sale retail licensee, as described in subdivision (a),
35who,
directly or indirectly, solicits or coerces a holder of a
36wholesaler’s license to solicit a beer manufacturer, a holder of a
37winegrower’s license, a distilled spirits rectifier, a distilled spirits
38manufacturer, or a distilled spirits manufacturer’s agent to purchase
39advertising space or time pursuant to subdivision (a) or (b) shall
40be guilty of a misdemeanor and shall be punished by imprisonment
P31 1in the county jail not exceeding six months, or by a fine in an
2amount equal to the entire value of the advertising space or time
3involved in the contract, whichever is greater, plus ten thousand
4dollars ($10,000), or by both imprisonment and fine. The person
5shall also be subject to license revocation pursuant to Section
624200.
7(e) For the purposes of this section, “beer manufacturer” includes
8any holder of a beer manufacturer’s license, any holder of an
9out-of-state beer manufacturer’s certificate, or any holder of a beer
10and wine importer’s general
license.
Section 25608 of the Business and Professions Code
12 is amended to read:
(a) Every person who possesses, consumes, sells, gives,
14or delivers tobegin delete any other person, anyend deletebegin insert another person anend insert alcoholic
15beverage in or onbegin delete anyend deletebegin insert aend insert public schoolhouse orbegin delete any ofend delete the grounds
16of the schoolhouse, is guilty of a misdemeanor. This section does
17not, however, make it unlawful forbegin delete anyend deletebegin insert
aend insert person to acquire, possess,
18or usebegin delete anyend deletebegin insert anend insert alcoholic beverage in or onbegin delete anyend deletebegin insert aend insert public schoolhouse,
19or onbegin delete anyend deletebegin insert theend insert grounds of the schoolhouse, if any of the following
20applies:
21(1) The alcoholic beverage possessed, consumed, or sold,
22pursuant to a license obtained under this division, is wine that is
23produced by a bonded winery owned or operated
as part of an
24instructional program in viticulture and enology.
25(2) The alcoholic beverage is acquired, possessed, or used in
26connection with a course of instruction given at the school and the
27person has been authorized to acquire, possess, or use it by the
28governing body or other administrative head of the school.
29(3) The public schoolhouse is surplus school property and the
30grounds of the schoolhouse are leased to a lessee that is a general
31law city with a population of less than 50,000, or the public
32schoolhouse is surplus school property and the grounds of the
33schoolhouse are located in an unincorporated area and are leased
34to a lessee that is a civic organization, and the property is to be
35used for community center purposes and no public school education
36is to be conducted on the property by either the lessor or the lessee
37and the property is not being used by persons under
the age of 21
38years for recreational purposes at any time during which alcoholic
39beverages are being sold or consumed on the premises.
P32 1(4) The alcoholic beverages are acquired, possessed, or used
2during events at a college-owned or college-operated veterans
3stadium with a capacity of over 12,000 people, located in a county
4with a population of over 6,000,000 people. As used in this
5paragraph, “events” mean football games sponsored by a college,
6other than a public community college, or other events sponsored
7by noncollege groups.
8(5) The alcoholic beverages are acquired, possessed, or used
9during an event not sponsored by any college at a performing arts
10facility built on property owned by a community college district
11and leased to a nonprofit organization that is a public benefit
12corporation formed under Part 2 (commencing with Section 5110)
13of Division 2 of Title 1 of the
Corporations Code. As used in this
14paragraph, “performing arts facility” means an auditorium with
15more than 300 permanent seats.
16(6) The alcoholic beverage is wine for sacramental or other
17religious purposes and is used only during authorized religious
18services held on or before January 1, 1995.
19(7) The alcoholic beverages are acquired, possessed, or used
20during an event at a community center owned by a community
21services district or a city and the event is not held at a time when
22students are attending a public school-sponsored activity at the
23center.
24(8) The alcoholic beverage is wine that is acquired, possessed,
25or used during an event sponsored by a community college district
26or an organization operated for the benefit of the community
27college district where the college district maintains both an
28instructional
program in viticulture on no less than five acres of
29land owned by the district and an instructional program in enology,
30which includes sales and marketing.
31(9) The alcoholic beverage is acquired, possessed, or used at a
32professional minor league baseball game conducted at the stadium
33of a community college located in a county with a population of
34less than 250,000 inhabitants, and the baseball game is conducted
35pursuant to a contract between the community college district and
36a professional sports organization.
37(10) The alcoholic beverages are acquired, possessed, or used
38during events at a college-owned or college-operated stadium or
39other facility. As used in this paragraph, “events” means fundraisers
40held to benefit a nonprofit corporation that has obtained a license
P33 1pursuant to this division for the event. “Events” does not include
2football games or other athletic contests
sponsored by any college
3or public community college. This paragraphbegin delete shallend deletebegin insert doesend insert not apply
4to any public education facility in which any grade from
5kindergarten to grade 12, inclusive, is schooled.
6(11) The alcoholic beverages are possessed, consumed, or sold,
7pursuant to a license, permit, or authorization obtained under this
8division, for an event held at an overnight retreat facility owned
9and operated by a county office of education or a school district
10at times when pupils are not on the grounds.
11(12) The grounds of the public schoolhouse on which the
12alcoholic beverage is acquired, possessed, used, or consumed is
13property that has been developed and is used for residential
14facilities or
housing that is offered for rent, lease, or sale
15exclusively to faculty or staff of a public school or community
16college.
17(13) The grounds of a public schoolhouse on which the alcoholic
18beverage is acquired, possessed, used, or consumed is property of
19a community college that is leased, licensed, or otherwise provided
20for use as a water conservation demonstration garden and
21community passive recreation resource by a joint powers agency
22comprised of public agencies, including the community college,
23and the event at which the alcoholic beverage is acquired,
24possessed, used, or consumed is conducted pursuant to a written
25policy adopted by the governing body of the joint powers agency
26and no public funds are used for the purchase or provision of the
27alcoholic beverage.
28(14) The alcoholic beverage is beer or wine acquired, possessed,
29used, sold, or consumed only in connection with a
course of
30instruction, sponsored dinner, or meal demonstration given as part
31of a culinary arts program at a campus of a California community
32college and the person has been authorized to acquire, possess,
33use, sell, or consume the beer or wine by the governing body or
34other administrative head of the school.
35(15) The alcoholic beverages are possessed, consumed, or sold,
36pursuant to a license or permit obtained under this division for
37special events held at the facilities of a public community college
38during the special event. As used in this paragraph, “special event”
39means events that are held with the permission of the governing
40board of the community college district that are festivals, shows,
P34 1private parties, concerts, theatrical productions, and other events
2held on the premises of the public community college and for
3which the principal attendees are members of the general public
4or invited guests and not students of the public community
college.
5(16) The alcoholic beverages are acquired, possessed, or used
6during an event at a community college-owned facility in which
7any grade from kindergarten to grade 12, inclusive, is schooled,
8if the event is held at a time when students in any grades from
9kindergarten to grade 12, inclusive, are not present at the facility.
10As used in this paragraph, “events” include fundraisers held to
11benefit a nonprofit corporation that has obtained a license pursuant
12to this division for the event.
13(17) The alcoholic beverages are acquired, possessed, used, or
14consumed pursuant to a license or permit obtained under this
15division for special events held at facilities owned and operated
16by an educational agency, a county office of education,
17superintendent of schools, school district, or community college
18district at a time when pupils are not on the grounds. As used in
19this paragraph,
“facilities”begin delete includes,end deletebegin insert include,end insert but are not limited
20to, office complexes, conference centers, or retreat facilities.
21(b) Any person convicted of a violation of this section shall, in
22addition to the penalty imposed for the misdemeanor, be barred
23from having or receiving any privilege of the use of public school
24propertybegin delete whichend deletebegin insert thatend insert is accorded by Article 2 (commencing with
25Section 82537) of Chapter 8 of Part 49 of Division 7 of Title 3 the
26Education Code.
Section 56.36 of the Civil Code is amended to read:
(a) begin deleteAny end deletebegin insertA end insertviolation of the provisions of this part that
29results in economic loss or personal injury to a patient is punishable
30as a misdemeanor.
31(b) In addition to any other remedies available at law,begin delete anyend deletebegin insert anend insert
32 individual may bring an action againstbegin delete anyend deletebegin insert
aend insert person or entity who
33has negligently released confidential information or records
34concerning him or her in violation of this part, for either or both
35of the following:
36(1) Except as provided in subdivision (e), nominal damages of
37one thousand dollars ($1,000). In order to recover under this
38paragraph, itbegin delete shallend deletebegin insert isend insert notbegin delete beend delete necessary that the plaintiff suffered or
39was threatened with actual damages.
P35 1(2) The amount of actual damages, if any, sustained by the
2patient.
3(c) (1) In addition,begin delete anyend deletebegin insert
aend insert person or entity that negligently
4discloses medical information in violation of the provisions of this
5part shall also be liable, irrespective of the amount of damages
6suffered by the patient as a result of that violation, for an
7administrative fine or civil penalty not to exceed two thousand
8five hundred dollars ($2,500) per violation.
9(2) (A) begin deleteAny end deletebegin insertA end insertperson or entity, other than a licensed health
10care professional, who knowingly and willfully obtains, discloses,
11or uses medical information in violation of this part shall be liable
12for an administrative fine or civil penalty not to exceed twenty-five
13thousand dollars ($25,000) per violation.
14(B) begin deleteAny end deletebegin insertA end insertlicensed health carebegin delete professional,end deletebegin insert
professionalend insert who
15knowingly and willfully obtains, discloses, or uses medical
16information in violation of this part shall be liable on a first
17begin delete violation,end deletebegin insert violationend insert for an administrative fine or civil penalty not
18to exceed two thousand five hundred dollars ($2,500) per violation,
19begin delete orend delete on a second violation for an administrative fine or civil penalty
20not to exceed ten thousand dollars ($10,000) per violation, or on
21a third and subsequent violation for an administrative fine or civil
22penalty not to exceed twenty-five thousand dollars ($25,000) per
23violation.begin delete Nothing in thisend deletebegin insert
Thisend insert subdivision shallbegin insert notend insert be construed
24to limit the liability of a health care service plan, a contractor, or
25a provider of health care that is not a licensed health care
26professional forbegin delete anyend deletebegin insert aend insert violation of this part.
27(3) (A) begin deleteAny end deletebegin insertA end insertperson or entity, other than a licensed health
28care professional, who knowingly or willfully obtains or uses
29medical information in violation of this part for the purpose
of
30financial gain shall be liable for an administrative fine or civil
31penalty not to exceed two hundred fifty thousand dollars ($250,000)
32per violation and shall also be subject to disgorgement of any
33proceeds or other consideration obtained as a result of the violation.
34(B) begin deleteAny end deletebegin insertA end insertlicensed health carebegin delete professional,end deletebegin insert professionalend insert who
35knowingly and willfully obtains, discloses, or uses medical
36information in violation of this part for financial gain shall be liable
37on a firstbegin delete violation,end deletebegin insert
violationend insert for an administrative fine or civil
38penalty not to exceed five thousand dollars ($5,000) per violation,
39begin delete orend delete on a second violation for an administrative fine or civil penalty
40not to exceed twenty-five thousand dollars ($25,000) per violation,
P36 1or on a third and subsequent violation for an administrative fine
2or civil penalty not to exceed two hundred fifty thousand dollars
3($250,000) per violation and shall also be subject to disgorgement
4of any proceeds or other consideration obtained as a result of the
5violation.begin delete Nothing in thisend deletebegin insert Thisend insert subdivision shallbegin insert notend insert be construed
6to limit the
liability of a health care service plan, a contractor, or
7a provider of health care that is not a licensed health care
8professional for any violation of this part.
9(4) begin deleteNothing in this end deletebegin insertThis end insertsubdivision shallbegin insert notend insert be construed as
10authorizing an administrative fine or civil penalty under both
11paragraphs (2) and (3) for the same violation.
12(5) begin deleteAny end deletebegin insertA end insertperson or entity who is not permitted to receive
13
medical information pursuant to this part and who knowingly and
14willfully obtains, discloses, or uses medical information without
15written authorization from the patient shall be liable for a civil
16penalty not to exceed two hundred fifty thousand dollars ($250,000)
17per violation.
18(d) In assessing the amount of an administrative fine or civil
19penalty pursuant to subdivision (c), the State Department of Public
20Health, licensing agency, or certifying board or court shall consider
21anybegin delete one or moreend delete of the relevant circumstances presented by any
22of the parties to the case including, but not limited to, the following:
23(1) Whether the defendant has made a reasonable, good faith
24attempt to comply with this part.
25(2) The nature and seriousness of the misconduct.
26(3) The harm to the patient, enrollee, or subscriber.
27(4) The number of violations.
28(5) The persistence of the misconduct.
29(6) The length of time over which the misconduct occurred.
30(7) The willfulness of the defendant’s misconduct.
31(8) The defendant’s assets, liabilities, and net worth.
32(e) (1) In an action brought by an individual pursuant to
33subdivision (b) on or after January 1, 2013, in which the defendant
34establishes the affirmative defense in paragraph (2), the court shall
35award any actual damages and reasonable
attorney’s fees and costs,
36butbegin delete mayend deletebegin insert shallend insert not award nominal damages for a violation of this
37part.
38(2) The defendant is entitled to an affirmative defense if all of
39the following are established, subject to the equitable
40considerations in paragraph (3):
P37 1(A) The defendant is a covered entity or business associate, as
2defined in Section 160.103 of Title 45 of the Code of Federal
3Regulations, in effect as of January 1, 2012.
4(B) The defendant has complied with any obligations to notify
5all persons entitled to receive notice regarding the release of the
6information or records.
7(C) The release of confidential information or records was solely
8to another covered entity or business associate.
9(D) The release of confidential information or records was not
10an incident of medical identity theft. For purposes of this
11subparagraph, “medical identity theft” means the use of an
12individual’s personal information, as defined in Section 1798.80,
13without the individual’s knowledge or consent, to obtain medical
14goods or services, or to submit false claims for medical services.
15(E) The defendant took appropriate preventive actions to protect
16the confidential information or records against release consistent
17with the defendant’s obligations under this part or other applicable
18state law and the Health Insurance Portability and Accountability
19Act of 1996 (Public Law 104-191) (HIPAA) and all HIPAA
20Administrative Simplification Regulations in effect on January
1,
212012, contained in Parts 160, 162, and 164 of Title 45 of the Code
22of Federalbegin delete Regulationsend deletebegin insert
Regulations,end insert and Part 2 of Title 42 of the
23Code of Federal Regulations, including, but not limitedbegin delete to:end deletebegin insert to, all
24of the following:end insert
25(i) Developing and implementing security policies and
26procedures.
27(ii) Designating a security official who is responsible for
28developing and implementing its security policies and procedures,
29including educating and training the workforce.
30(iii) Encrypting the information or records, and protecting
31against the release or use of the encryption key and passwords, or
32transmitting the information or records in a manner designed to
33provide equal or greater protections
against improper disclosures.
34(F) The defendant took reasonable and appropriate corrective
35action after the release of the confidential information or records,
36and the covered entity or business associate that received the
37confidential information or records destroyed or returned the
38confidential information or records in the most expedient time
39possible and without unreasonable delay, consistent with any
40measures necessary to determine the scope of the breach and restore
P38 1the reasonable integrity of the data system. A court may consider
2this subparagraph to be established if the defendant shows in detail
3that the covered entity or business associate could not destroy or
4return the confidential information or records because of the
5technology utilized.
6(G) The covered entity or business associate that received the
7confidential information or records, or any of its agents,
8
independent contractors, or employees, regardless of the scope of
9the employee’s employment, did not retain, use, or release the
10information or records.
11(H) After the release of the confidential information or records,
12the defendant took reasonable and appropriate action to prevent a
13future similar release of confidential information or records.
14(I) The defendant has not previously established an affirmative
15defense pursuant to this subdivision, or the court determines, in
16its discretion, that application of the affirmative defense is
17compelling and consistent with the purposes of this section to
18promote reasonable conduct in light of all the facts.
19(3) (A) In determining whether the affirmative defense may be
20established pursuant to paragraph (2), the court shall consider the
21equity of the
situation, including, but not limited to, (i) whether
22the defendant has previously violated this part, regardless of
23whether an action has previously been brought, and (ii) the nature
24of the prior violation.
25(B) To the extent the court allows discovery to determine
26whether there has been any other violation of this part that the
27court will consider in balancing the equities, the defendant shall
28not provide any medical information, as defined in Section 56.05.
29The court, in its discretion, may enter a protective order prohibiting
30the further use of any personal information, as defined in Section
311798.80, about the individual whose medical information may
32have been disclosed in a prior violation.
33(4) In an action under this subdivision in which the defendant
34establishes the affirmative defense pursuant to paragraph (2), a
35plaintiff shall be entitled to recover reasonable attorney’s
fees and
36costs without regard to an award of actual or nominal damages or
37the imposition of administrative fines or civil penalties.
38(5) In an action brought by an individual pursuant to subdivision
39(b) on or after January 1, 2013, in which the defendant establishes
40the affirmative defense pursuant to paragraph (2), a defendant shall
P39 1not be liable for more than one judgment on the merits under this
2subdivision for releases of confidential information or records
3arising out of the same event, transaction, or occurrence.
4(f) (1) The civil penalty pursuant to subdivision (c) shall be
5assessed and recovered in a civil action brought in the name of the
6people of the State of California in any court of competent
7jurisdiction by any of the following:
8(A) The Attorney General.
9(B) begin deleteAny end deletebegin insertA end insertdistrict attorney.
10(C) begin deleteAny end deletebegin insertA end insertcounty counsel authorized by agreement with the
11district attorney in actions involving violation of a county
12ordinance.
13(D) begin deleteAny end deletebegin insertA end insertcity attorney of a city.
14(E) begin deleteAny end deletebegin insertA end insertcity attorney of a city and county having a population
15in excess of 750,000, with the consent of the district attorney.
16(F) A city prosecutor inbegin delete anyend deletebegin insert aend insert city having a full-time city
17prosecutor or, with the consent of the district attorney, by a city
18attorney inbegin delete anyend deletebegin insert aend insert city and county.
19(G) The
State Public Health Officer, or his or her designee, may
20recommend thatbegin delete anyend deletebegin insert aend insert person described in subparagraphs (A) to
21(F), inclusive, bring a civil action under this section.
22(2) If the action is brought by the Attorney General, one-half
23of the penalty collected shall be paid to the treasurer of the county
24in which the judgment was entered, and one-half to the General
25Fund. If the action is brought by a district attorney or county
26counsel, the penalty collected shall be paid to the treasurer of the
27county in which the judgment was entered. Except as provided in
28paragraph (3), if the action is brought by a city attorney or city
29prosecutor, one-half of the penalty collected shall be paid to the
30treasurer of the city in which the judgment was entered and
one-half
31to the treasurer of the county in which the judgment was entered.
32(3) If the action is brought by a city attorney of a city and
33county, the entire amount of the penalty collected shall be paid to
34the treasurer of the city and county in which the judgment was
35entered.
36(4) begin deleteNothing in this end deletebegin insertThis end insertsection shallbegin insert notend insert be construed as
37authorizing both an administrative fine and civil penalty for the
38same violation.
P40 1(5) Imposition of a fine or penalty provided for in this section
2shall not preclude imposition ofbegin delete anyend delete
other sanctions or remedies
3authorized by law.
4(6) Administrative fines or penalties issued pursuant to Section
51280.15 of the Health and Safety Code shall offset any other
6administrative fine or civil penalty imposed under this section for
7the same violation.
8(g) For purposes of this section, “knowing” and “willful” shall
9have the same meanings as in Section 7 of the Penal Code.
10(h) begin deleteNo end deletebegin insertA end insertperson who discloses protected medical information
11in accordance with the provisions of this partbegin delete shall beend deletebegin insert
is notend insert subject
12to the penalty provisions of this part.
Section 1936.5 of the Civil Code, as added by Section
141 of Chapter 406 of the Statutes of 2012, is repealed.
A “rental company” as defined in paragraph (1) of
16subdivision (a) of Section 1936 is not subject to the requirements
17of Section 14608 of the Vehicle Code if the rental is subject to the
18terms of a membership agreement that allows the renter to gain
19physical access to a car without a key through use of a code, use
20of a key card, or by other means that allow the car to be accessed
21at a remote location,
or at a business location of the rental company
22outside of that location’s regular hours of operation.
Section 2923.55 of the Civil Code, as amended by
24Section 14 of Chapter 76 of the Statutes of 2013, is repealed.
(a) A mortgage servicer, mortgagee, trustee,
26beneficiary, or authorized agent may not record a notice of default
27pursuant to Section 2924 until all of the following:
28(1) The mortgage servicer has satisfied the requirements of
29paragraph (1) of subdivision (b).
30(2) Either 30 days after initial contact is made as required by
31paragraph (2) of subdivision (b) or 30 days after satisfying the due
32diligence requirements as described in subdivision (f).
33(3) The mortgage servicer complies with subdivision (c) of
34Section 2923.6, if the borrower has provided a complete application
35as defined in subdivision (h) of Section 2923.6.
36(b) (1) As specified in subdivision (a), a mortgage servicer shall
37send the following information in writing to the borrower:
38(A) A statement that if the borrower is a servicemember or a
39dependent of a servicemember, he or she may be entitled to certain
40protections under the federal Servicemembers Civil Relief Act (50
P41 1U.S.C. Appen. Sec. 501 et seq.) regarding the servicemember’s
2interest rate and the risk of foreclosure, and
counseling for covered
3servicemembers that is available at agencies such as Military
4OneSource and Armed Forces Legal Assistance.
5(B) A statement that the borrower may request the following:
6(i) A copy of the borrower’s promissory note or other evidence
7of indebtedness.
8(ii) A copy of the borrower’s deed of trust or mortgage.
9(iii) A copy of any assignment, if applicable, of the borrower’s
10mortgage or deed of trust required to demonstrate the right of the
11mortgage servicer to foreclose.
12(iv) A copy of the borrower’s payment history since the
13borrower was last less than 60 days past due.
14(2) A mortgage servicer shall contact
the borrower in person or
15by telephone in order to assess the borrower’s financial situation
16and explore options for the borrower to avoid foreclosure. During
17the initial contact, the mortgage servicer shall advise the borrower
18that he or she has the right to request a subsequent meeting and,
19if requested, the mortgage servicer shall schedule the meeting to
20occur within 14 days. The assessment of the borrower’s financial
21situation and discussion of options may occur during the first
22contact, or at the subsequent meeting scheduled for that purpose.
23In either case, the borrower shall be provided the toll-free telephone
24number made available by the United States Department of
25Housing and Urban Development (HUD) to find a HUD-certified
26housing counseling agency. Any meeting may occur telephonically.
27(c) A notice of default recorded pursuant to Section 2924 shall
28include a declaration that the mortgage servicer has contacted the
29borrower, has tried
with due diligence to contact the borrower as
30required by this section, or that no contact was required because
31the individual did not meet the definition of “borrower” pursuant
32to subdivision (c) of Section 2920.5.
33(d) A mortgage servicer’s loss mitigation personnel may
34participate by telephone during any contact required by this section.
35(e) A borrower may designate, with consent given in writing,
36a HUD-certified housing counseling agency, attorney, or other
37adviser to discuss with the mortgage servicer, on the borrower’s
38behalf, the borrower’s financial situation and options for the
39borrower to avoid foreclosure. That contact made at the direction
40of the borrower shall satisfy the contact requirements of paragraph
P42 1(2) of subdivision (b). Any foreclosure prevention alternative
2offered at the meeting by the mortgage servicer is subject to
3approval by the borrower.
4(f) A notice of default may be recorded pursuant to Section 2924
5when a mortgage servicer has not contacted a borrower as required
6by paragraph (2) of subdivision (b), provided that the failure to
7contact the borrower occurred despite the due diligence of the
8mortgage servicer. For purposes of this section, “due diligence”
9shall require and mean all of the following:
10(1) A mortgage servicer shall first attempt to contact a borrower
11by sending a first-class letter that includes the toll-free telephone
12number made available by HUD to find a HUD-certified housing
13counseling agency.
14(2) (A) After the letter has been sent, the mortgage servicer shall
15attempt to contact the borrower by telephone at least three times
16at different hours and on different days. Telephone calls shall be
17made to the primary telephone number on
file.
18(B) A mortgage servicer may attempt to contact a borrower
19using an automated system to dial borrowers, provided that, if the
20telephone call is answered, the call is connected to a live
21representative of the mortgage servicer.
22(C) A mortgage servicer satisfies the telephone contact
23requirements of this paragraph if it determines, after attempting
24contact pursuant to this paragraph, that the borrower’s primary
25telephone number and secondary telephone number or numbers
26on file, if any, have been disconnected.
27(3) If the borrower does not respond within two weeks after the
28telephone call requirements of paragraph (2) have been satisfied,
29the mortgage servicer shall then send a certified letter, with return
30receipt requested, that includes the toll-free telephone number
31made available by HUD to find a HUD-certified
housing
32counseling agency.
33(4) The mortgage servicer shall provide a means for the borrower
34to contact it in a timely manner, including a toll-free telephone
35number that will provide access to a live representative during
36business hours.
37(5) The mortgage servicer has posted a prominent link on the
38homepage of its Internet Web site, if any, to the following
39information:
P43 1(A) Options that may be available to borrowers who are unable
2to afford their mortgage payments and who wish to avoid
3foreclosure, and instructions to borrowers advising them on steps
4to take to explore those options.
5(B) A list of financial documents borrowers should collect and
6be prepared to present to the mortgage servicer when discussing
7options for avoiding foreclosure.
8(C) A toll-free telephone number for borrowers who wish to
9discuss options for avoiding foreclosure with their mortgage
10servicer.
11(D) The toll-free telephone number made available by HUD to
12find a HUD-certified housing counseling agency.
13(g) This section shall not apply to entities described in
14subdivision (b) of Section 2924.18.
15(h) This section shall apply only to mortgages or deeds of trust
16described in Section 2924.15.
17(i) This section shall remain in effect only until January 1, 2018,
18and as of that date is repealed, unless a later enacted statute, that
19is enacted before January 1, 2018, deletes or extends that date.
Section 2924.19 of the Civil Code, as amended by
21Section 10 of Chapter 401 of the Statutes of 2014, is repealed.
(a) (1) If a trustee’s deed upon sale has not been
23recorded, a borrower may bring an action for injunctive relief to
24enjoin a material violation of Section 2923.5, 2924.17, or 2924.18.
25(2) An injunction shall remain in place and any trustee’s sale
26shall be enjoined until the court determines that the mortgage
27servicer, mortgagee, beneficiary, or authorized agent has corrected
28and remedied the violation or violations giving rise to the action
29for injunctive relief. An enjoined entity may move to dissolve an
30injunction based on a showing that the material violation has been
31corrected and remedied.
32(b) After a trustee’s deed upon sale has been recorded, a
33mortgage servicer,
mortgagee, beneficiary, or authorized agent
34shall be liable to a borrower for actual economic damages pursuant
35to Section 3281, resulting from a material violation of Section
362923.5, 2924.17, or 2924.18 by that mortgage servicer, mortgagee,
37beneficiary, or authorized agent where the violation was not
38corrected and remedied prior to the recordation of the trustee’s
39deed upon sale. If the court finds that the material violation was
40intentional or reckless, or resulted from willful misconduct by a
P44 1mortgage servicer, mortgagee, beneficiary, or authorized agent,
2the court may award the borrower the greater of treble actual
3damages or statutory damages of fifty thousand dollars ($50,000).
4(c) A mortgage servicer, mortgagee, beneficiary, or authorized
5agent shall not be liable for any violation that it has corrected and
6remedied prior to the recordation of the trustee’s deed upon sale,
7or that has been corrected and remedied by third parties working
8
on its behalf prior to the recordation of the trustee’s deed upon
9sale.
10(d) A violation of Section 2923.5, 2924.17, or 2924.18 by a
11person licensed by the Department of Business Oversight or the
12Bureau of Real Estate shall be deemed to be a violation of that
13person’s licensing law.
14(e) A violation of this article shall not affect the validity of a
15sale in favor of a bona fide purchaser and any of its encumbrancers
16for value without notice.
17(f) A third-party encumbrancer shall not be relieved of liability
18resulting from violations of Section 2923.5, 2924.17, or 2924.18,
19committed by that third-party encumbrancer, that occurred prior
20to the sale of the subject property to the bona fide purchaser.
21(g) The rights, remedies, and procedures provided by this
section
22are in addition to and independent of any other rights, remedies,
23or procedures under any other law. Nothing in this section shall
24be construed to alter, limit, or negate any other rights, remedies,
25or procedures provided by law.
26(h) A court may award a prevailing borrower reasonable
27attorney’s fees and costs in an action brought pursuant to this
28section. A borrower shall be deemed to have prevailed for purposes
29of this subdivision if the borrower obtained injunctive relief or
30damages pursuant to this section.
31(i) This section shall apply only to entities described in
32subdivision (b) of Section 2924.18.
33(j) This section shall remain in effect only until January 1, 2018,
34and as of that date is repealed, unless a later enacted statute, that
35is enacted before January 1, 2018, deletes or extends
that date.
Section 2924.20 of the Civil Code, as amended by
37Section 12 of Chapter 401 of the Statutes of 2014, is repealed.
Consistent with their general regulatory authority,
39and notwithstanding subdivisions (b) and (c) of Section 2924.18,
40the Department of Business Oversight and the Bureau of Real
P45 1Estate may adopt regulations applicable to any entity or person
2under their respective jurisdictions that are necessary to carry out
3the purposes of the act that added this section. A violation of the
4regulations adopted pursuant to this section shall only be
5enforceable by the regulatory agency.
Section 2934a of the Civil Code, as amended by
7Section 1 of Chapter 839 of the Statutes of 1996, is repealed.
(a) (1) The trustee under a trust deed upon real property
9or an estate for years therein given to secure an obligation to pay
10money and conferring no other duties upon the trustee than those
11which are incidental to the exercise of the power of sale therein
12conferred, may be substituted by the recording in the county in
13which the property is located of a substitution executed and
14acknowledged by: (A) all of the beneficiaries under the trust deed,
15or their successors in interest,
and the substitution shall be effective
16notwithstanding any contrary provision in any trust deed executed
17on or after January 1, 1968; or (B) the holders of more than 50
18percent of the record beneficial interest of a series of notes secured
19by the same real property or of undivided interests in a note secured
20by real property equivalent to a series transaction, exclusive of
21any notes or interests of a licensed real estate broker that is the
22issuer or servicer of the notes or interests or of any affiliate of that
23licensed real estate broker.
24(2) A substitution executed pursuant to subparagraph (B) of
25paragraph (1) is not effective unless all the parties signing the
26substitution sign, under penalty of perjury, a separate written
27document stating the following:
28(A) The substitution has been signed pursuant to subparagraph
29(B) of paragraph (1).
30(B) None of the undersigned is a licensed real estate broker or
31an affiliate of the broker that is the issuer or servicer of the
32obligation secured by the deed of trust.
33(C) The undersigned together hold more than 50 percent of the
34record beneficial interest of a series of notes secured by the same
35real property or of undivided interests in a note secured by real
36property equivalent to a series transaction.
37(D) Notice of the substitution was sent by certified mail, postage
38prepaid, with return receipt requested to each holder of an interest
39in the obligation secured by the deed of trust who has not joined
40in the execution of the substitution or the separate document.
P46 1The separate document shall be attached to the substitution and
2be recorded in the office of the county recorder
of each county in
3which the real property described in the deed of trust is located.
4Once the document required by this paragraph is recorded, it shall
5constitute conclusive evidence of compliance with the requirements
6of this paragraph in favor of substituted trustees acting pursuant
7to this section, subsequent assignees of the obligation secured by
8the deed of trust, and subsequent bona fide purchasers or
9encumbrancers for value of the real property described therein.
10(3) For purposes of this section, “affiliate of the licensed real
11estate broker” includes any person as defined in Section 25013 of
12the Corporations Code that is controlled by, or is under common
13control with, or who controls, a licensed real estate broker.
14“Control” means the possession, direct or indirect, of the power
15to direct or cause the direction of management and policies.
16(4) The substitution shall contain
the date of recordation of the
17trust deed, the name of the trustor, the book and page or instrument
18number where the trust deed is recorded, and the name of the new
19trustee. From the time the substitution is filed for record, the new
20trustee shall succeed to all the powers, duties, authority, and title
21granted and delegated to the trustee named in the deed of trust. A
22substitution may be accomplished, with respect to multiple deeds
23of trust which are recorded in the same county in which the
24substitution is being recorded and which all have the same trustee
25and beneficiary or beneficiaries, by recording a single document,
26complying with the requirements of this section, substituting
27trustees for all those deeds of trust.
28(b) If the substitution is effected after a notice of default has
29been recorded but prior to the recording of the notice of sale, the
30beneficiary or beneficiaries shall cause a copy of the substitution
31to be mailed, prior to the
recording thereof, in the manner provided
32in Section 2924b, to the trustee then of record and to all persons
33to whom a copy of the notice of default would be required to be
34mailed by the provisions of Section 2924b. An affidavit shall be
35attached to the substitution that notice has been given to those
36persons and in the manner required by this subdivision.
37(c) Notwithstanding any provision of this section or any
38provision in any deed of trust, unless a new notice of sale
39containing the name, street address, and telephone number of the
P47 1substituted trustee is given pursuant to Section 2924f, any sale
2conducted by the substituted trustee shall be void.
3(d) This section shall remain in effect only until January 1, 1998,
4and shall have no force or effect after that date, unless a later
5enacted statute, which is enacted before January 1, 1998, deletes
6or extends that
date.
Title 17 (commencing with Section 3272) of Part 4
8of Division 3 of the Civil Code, as added by Section 2 of Chapter
9698 of the Statutes of 1999, is repealed.
Section 3486 of the Civil Code is amended to read:
(a) To abate the nuisance caused by illegal conduct
12involving a controlled substance purpose on real property, the city
13prosecutor or city attorney may file, in the name of the people, an
14action for unlawful detainer against any person who is in violation
15of the nuisance or illegal purpose provisions of subdivision 4 of
16Section 1161 of the Code of Civil Procedure, with respect to that
17controlled substance purpose. In filing this action, which shall be
18based upon an arrest report by a law enforcement agency, reporting
19an offense committed on the property and documented by the
20observations of a police officer, the city prosecutor or city attorney
21shall use the procedures set forth in Chapter 4 (commencing with
22Section 1159) of Title 3 of Part 3 of the Code of Civil Procedure,
23except that in cases filed under this section, the
following also
24shall apply:
25(1) (A) Prior to filing an action pursuant to this section, the city
26prosecutor or city attorney shall give 30 calendar days’ written
27notice to the owner, requiring the owner to file an action for the
28removal of the person who is in violation of the nuisance or illegal
29purpose provisions of subdivision 4 of Section 1161 of the Code
30of Civil Procedure with respect to a controlled substance purpose.
31(B) This notice shall include sufficient documentation
32establishing a violation of the nuisance or illegal purpose provisions
33of subdivision 4 of Section 1161 of the Code of Civil Procedure
34and an advisement to the owner of the assignment provision
35contained in subparagraph (D). The notice shall be served upon
36the owner and the tenant in accordance with subdivision (e).
37(C) The notice to the tenant shall, in at least 14-point bold type,
38meet the following requirements:
39(i) The notice shall contain the following language:
40
P48 1“(Date)
2
3(Name of tenant)
4(Address of tenant)
5
6Re: Civil Code Section 3486
7
8Dear (name of tenant):
9
10This letter is to inform you that an eviction action may soon be
11filed in court against you for
suspected drug activity. According
12to state law, Civil Code Section 3486 provides for eviction of
13persons engaging in such conduct, as described below.
14
15(Name of police department) records indicate that you, (name
16of arrestee), were arrested on (date) for violations of (list violations)
17on (address of property).
18
19A letter has been sent to the property owner(s) advising of your
20arrest and the requirements of state law, as well as the landlord’s
21option to assign the unlawful detainer action to the (name of city
22attorney or prosecutor’s office).
23
24A list of legal assistance providers is provided below. Please
25note, this list is not exclusive and is provided for your information
26only; the
(name of city attorney or prosecutor’s office) does not
27endorse or recommend any of the listed agencies.
28
29Sincerely,
30
31(Name of deputy city attorney or city prosecutor)
32Deputy City (Attorney or Prosecutor)
33
34Notice to Tenant: This notice is not a notice of eviction. You
35should call (name of the city attorney or prosecutor pursuing the
36action) at (telephone number) or a legal assistance provider to stop
37the eviction action if any of the following is applicable:
38(1) You are not the person named in this notice.
39(2) The person named in the notice does not live with you.
40(3) The person named in the notice has permanently moved.
P49 1(4) You do not know the person named in the notice.
2(5) You want to request that only the person involved in the
3nuisance be evicted, allowing the other residents to stay.
4(6) You have any other legal defense or legal reason to stop the
5eviction action.
6A list of legal assistance providers is attached to this notice.
7Some provide free legal assistance if you are eligible.”
8
9(ii) The notice shall be provided to the tenant in English and,
10as translated, in all of the languages
identified in subdivision (a)
11of Section 1632 of the Civil Code.
12(D) The owner shall, within 30 calendar days of the mailing of
13the written notice, either provide the city prosecutor or city attorney
14with all relevant information pertaining to the unlawful detainer
15case, or provide a written explanation setting forth any
16safety-related reasons for noncompliance, and an assignment to
17the city prosecutor or city attorney of the right to bring an unlawful
18detainer action against the tenant.
19(E) The assignment shall be on a form provided by the city
20prosecutor or city attorney and may contain a provision for costs
21of investigation, discovery, and reasonable attorney’s fees, in an
22amount not to exceed six hundred dollars ($600). An owner shall
23only be required to pay the costs or fees upon acceptance of the
24assignment and the filing of the action for unlawful detainer by
25the city
prosecutor or city attorney.
26(F) If the city prosecutor or city attorney accepts the assignment
27of the right of the owner to bring the unlawful detainer action, the
28owner shall retain all other rights and duties, including the handling
29of the tenant’s personal property, following issuance of the writ
30of possession and its delivery to and execution by the appropriate
31agency.
32(2) Upon the failure of the owner to file an action pursuant to
33this section, or to respond to the city prosecutor or city attorney
34as provided in paragraph (1), or having filed an action, if the owner
35fails to prosecute it diligently and in good faith, the city prosecutor
36or city attorney may file and prosecute the action, and join the
37owner as a defendant in the action. This action shall have
38precedence over any similar proceeding thereafter brought by the
39owner, or to one previously brought by the owner and
not
40prosecuted diligently and in good faith. Service of the summons
P50 1and complaint upon the defendant owner shall be in accordance
2with Sections 415.10, 415.20, 415.30, 415.40, and 415.50 of the
3Code of Civil Procedure.
4(3) If a jury or court finds the defendant tenant guilty of unlawful
5detainer in a case filed pursuant to paragraph (2), the city
6prosecutor or city attorney may be awarded costs, including the
7costs of investigation and discovery and reasonable attorney’s fees.
8These costs shall be assessed against the defendant owner, to whom
9notice was directed pursuant to paragraph (1), and once an abstract
10of judgment is recorded, it shall constitute a lien on the subject
11real property.
12(4) begin deleteNothing in this section shall end deletebegin insertThis
section does not end insertprevent
13a local governing body from adopting and enforcing laws,
14consistent with this article, relating to drug abatement.begin delete Whereend deletebegin insert Ifend insert
15 local laws duplicate or supplement this section, this section shall
16be construed as providing alternative remedies and not preempting
17the field.
18(5) begin deleteNothing in this section shall end deletebegin insertThis section does not end insertprevent
19a tenant from receiving relief against a forfeiture of a lease pursuant
20to Section 1179 of the Code of Civil Procedure.
21(b) In
any proceeding brought under this section, the court may,
22upon a showing of good cause, issue a partial eviction ordering
23the removal of any person, including, but not limited to, members
24of the tenant’s household if the court finds that the person has
25engaged in the activities described in subdivision (a). Persons
26removed pursuant to this section may be permanently barred from
27returning to or reentering any portion of the entire premises. The
28court may further order as an express condition of the tenancy that
29the remaining tenants shall not give permission to or invite any
30person who has been removed pursuant to this subdivision to return
31to or reenter any portion of the entire premises.
32(c) For the purposes of this section, “controlled substance
33purpose” means the manufacture, cultivation, importation into the
34state, transportation, possession, possession for sale, sale,
35furnishing, administering, or giving away, or providing a place to
36use
or fortification of a place involving, cocaine, phencyclidine,
37heroin, methamphetamine, or any other controlled substance, in a
38violation of subdivision (a) of Section 11350, Section 11351,
3911351.5, 11352, or 11359, subdivision (a) of Section 11360, or
P51 1Section 11366, 11366.6, 11377, 11378, 11378.5, 11379, 11379.5,
211379.6, or 11383 of the Health and Safety Code.
3(d) Notwithstanding subdivision (b) of Section 68097.2 of the
4Government Code, a public entity may waive all or part of the
5costs incurred in furnishing the testimony of a peace officer in an
6unlawful detainer action brought pursuant to this section.
7(e) The notice and documentation described in paragraph (1)
8of subdivision (a) shall be given in writing and may be given either
9by personal delivery or by deposit in the United States mail in a
10sealed envelope, postage prepaid, addressed to the owner at the
11address known to
the public entity giving the notice, or as shown
12on the last equalized assessment roll, if not known. Separate notice
13of not less than 30 calendar days and documentation shall be
14provided to the tenant in accordance with this subdivision. Service
15by mail shall be deemed to be completed at the time of deposit in
16the United States mail. Proof of giving the notice may be made by
17a declaration signed under penalty of perjury by any employee of
18the public entity which shows service in conformity with this
19section.
20(f) In an unlawful detainer action filed pursuant to this section,
21the court shall make one of the following orders:
22(1) If the grounds for an eviction have not been established
23pursuant to this section, the court shall dismiss, without prejudice,
24the unlawful detainer action.
25(2) If the grounds for an eviction
have been established pursuant
26to this section, the court shall do either of the following:
27(A) Order that the tenant and all occupants be immediately
28evicted from the property.
29(B) Dismiss the unlawful detainer action with or without
30prejudice or stay execution of an eviction order for a reasonable
31length of time if the tenant establishes by clear and convincing
32evidence that the immediate eviction would pose an extreme
33hardship to the tenant and that this hardship outweighs the health,
34safety, or welfare of the neighbors or surrounding community.
35However, the courtbegin delete mayend deletebegin insert shallend insert not find an extreme hardship solely
36on the basisbegin delete onend deletebegin insert
ofend insert an economic hardship or the financial inability
37of the tenant to pay for and secure other housing or lodging
38accommodations.
39(3) If the grounds for a partial eviction have been established
40pursuant to subdivision (b), the court shall order that those persons
P52 1be immediately removed and barred from the property, but the
2courtbegin delete mayend deletebegin insert shallend insert not order the tenancy be terminated.
3(g) This sectionbegin delete shall applyend deletebegin insert appliesend insert only in the County of Los
4Angeles tobegin delete anyend deletebegin insert
aend insert court having jurisdiction over unlawful detainer
5cases involving real property situated in the City of Los Angeles.
6(h) This section shall become operative on January 1, 2014,
7only if the City of Los Angeles has regularly reported to the
8California Research Bureau as required by this section as it read
9during the period from January 1, 2010, to January 1, 2014,
10inclusive. For purposes of this section, the City of Los Angeles
11shall be deemed to have complied with this reporting requirement
12if the 2013 report to the Legislature by the California Research
13Bureau indicates that the City of Los Angeles has regularly reported
14to the bureau.
Section 5910 of the Civil Code is amended to read:
A fair, reasonable, and expeditious dispute resolution
17procedurebegin delete shallend deletebegin insert shall,end insert at abegin delete minimumend deletebegin insert minimum,end insert satisfy all of the
18following requirements:
19(a) The procedure may be invoked by either party to the dispute.
20A request invoking the procedure shall be in writing.
21(b) The procedure shall provide for prompt deadlines. The
22procedure shall state the
maximum time for the association to act
23on a request invoking the procedure.
24(c) If the procedure is invoked by a member, the association
25shall participate in the procedure.
26(d) If the procedure is invoked by the association, the member
27may elect not to participate in the procedure. If the member
28participates but the dispute is resolved other than by agreement of
29the member, the member shall have a right of appeal to the board.
30(e) A written resolution, signed by both parties, of a dispute
31pursuant to the procedure that is not in conflict with the law or the
32governing documents binds the association and is judicially
33enforceable. A written agreement, signed by both parties, reached
34pursuant to the procedure that is not in conflict with the law or the
35governing documents binds the parties and is judicially
enforceable.
36(f) The procedure shall provide a means by which the member
37and the association may explain their positions. The member and
38association may be assisted by an attorney or another person in
39explaining their positions at their own cost.
P53 1(g) A member of the association shall not be charged a fee to
2participate in the process.
Section 5915 of the Civil Code is amended to read:
(a) This section applies to an association that does not
5otherwise provide a fair, reasonable, and expeditious dispute
6resolution procedure. The procedure provided in this section is
7fair, reasonable, andbegin delete expeditious,end deletebegin insert expeditiousend insert within the meaning
8of this article.
9(b) Either party to a dispute within the scope of this article may
10invoke the following procedure:
11(1) The party may request the other party to meet and confer in
12an effort to resolve the dispute. The request shall be in writing.
13(2) A member of an association may refuse a request to meet
14and confer. The associationbegin delete mayend deletebegin insert shallend insert not refuse a request to meet
15and confer.
16(3) The board shall designate a director to meet and confer.
17(4) The parties shall meet promptly at a mutually convenient
18time and place, explain their positions to each other, and confer
19in good faith in an effort to resolve the dispute. The parties may
20be assisted by an attorney or another person at their own cost when
21conferring.
22(5) A resolution of the dispute agreed to by the parties shall be
23memorialized in writing and signed
by the parties, including the
24board designee on behalf of the association.
25(c) A written agreement reached under this section binds the
26parties and is judicially enforceable if it is signed by both parties
27and both of the following conditions are satisfied:
28(1) The agreement is not in conflict with law or the governing
29documents of the common interest development or association.
30(2) The agreement is either consistent with the authority granted
31by the board to its designee or the agreement is ratified by the
32board.
33(d) A member shall not be charged a fee to participate in the
34process.
Section 116.222 of the Code of Civil Procedure, as
36added by Section 3 of Chapter 600 of the Statutes of 2005, is
37repealed.
If the action is to enforce the payment of a debt, the
39statement of calculation of liability shall separately state the
40original debt, each payment credited to the debt, each fee and
P54 1charge added to the debt, each payment credited against those fees
2and charges, all other debits or charges to the account, and an
3explanation of the nature of those fees, charges, debits, and all
4other credits to the debt, by source and amount.
The heading of Article 5 (commencing with Section
6142) of Chapter 6 of Title 1 of Part 1 of the Code of Civil
7Procedure is repealed.
8
The heading of Chapter 1 (commencing with Section
12156) of Title 2 of Part 1 of the Code of Civil Procedure is repealed.
13
Section 398 of the Code of Civil Procedure is
17amended to read:
begin deleteIf, for any cause, specified in subdivisions 2, 3 and 4 of begin insert(a)end insertbegin insert end insertbegin insertIf a court orders the transfer of an action or proceeding
19section 397, the court orders the transfer of an action or proceeding,
20it must end delete
21for a cause specified in subdivisions (b), (c), and (d) of Section
22397, the action or proceeding shall end insertbe transferred to a court having
23jurisdiction of the subject matter of the actionbegin delete which the parties begin insert upon agreement of the
partiesend insert by stipulation in
24may agree upon,end delete
25writing, orbegin delete madeend delete in open court and entered in the minutes orbegin delete docket; begin insert docket. If the partiesend insert do not so agree,
26or, if theyend deletebegin delete thenend deletebegin insert the action or
27proceeding shall be transferredend insert to the nearest or most accessible
28begin delete court,end deletebegin insert courtend insert where the like objection or cause for making the order
29does not exist.
30If
end delete
31begin insert(b)end insertbegin insert end insertbegin insertIfend insert an action or proceeding is commenced in abegin delete court,end deletebegin insert courtend insert
32 other than one designated as a proper court for the trial thereof by
33the provisions of this title, and the samebegin delete beend deletebegin insert isend insert ordered transferred
34for that reason,begin delete it mustend deletebegin insert
the action or proceeding shallend insert be transferred
35tobegin delete any suchend deletebegin insert
aend insert proper courtbegin delete which the parties may agree upon by begin insert upon agreement of the parties by stipulation
36stipulation in writing, or made in open court and entered in the
37minutes or docket; ifend delete
38in writing, or in open court and entered in the minutes or docket.
39Ifend insert the parties do not so agree,begin delete then to any suchend deletebegin insert the action or
40proceeding shall be transferred to aend insert proper court in the county in
P55 1which the action or proceeding was commenced which the
2defendant maybegin delete designate,end deletebegin insert
designateend insert or, if therebegin delete beend deletebegin insert isend insert nobegin delete suchend delete proper
3court inbegin delete suchend deletebegin insert thatend insert county, tobegin delete any suchend deletebegin insert aend insert proper court, in a proper
4county, designated by thebegin delete defendant; if the parties do not so agree, begin insert
defendant. Ifend insert the defendant does not
5andend deletebegin delete soend delete designate thebegin delete court,end delete
6begin insert courtend insert as herein provided, orbegin delete whereend deletebegin insert ifend insert the court orders the transfer
7of an action on its own motion as provided in this title,begin insert the action
8or proceeding shall be transferredend insert tobegin delete suchend deletebegin insert
theend insert
proper court as
9begin insert determined byend insert the court in which the action or proceeding is
10begin delete pending may determine.end deletebegin insert pending.end insert
11The
end delete
12begin insert(c)end insertbegin insert end insertbegin insertTheend insert designation of the court by the defendantbegin delete, hereinend deletebegin insert
asend insert
13 providedbegin delete for,end deletebegin insert
for in subdivision (b),end insert may be made in the notice of
14motion for change of venue or in openbegin delete court,end deletebegin insert court andend insert entered in
15the minutes orbegin delete docket,end deletebegin insert docketend insert at the time the order for transfer is
16made.
Section 629 of the Code of Civil Procedure is
18amended to read:
(a) The court, before the expiration of its power to rule
20on a motion for a new trial, either of its own motion, after five
21days’ notice, or on motion of a party against whom a verdict has
22been rendered, shall render judgment in favor of the aggrieved
23party notwithstanding the verdict whenever a motion for a directed
24verdict for the aggrieved party should have been granted had a
25previous motion been made.
26(b) A motion for judgment notwithstanding the verdict shall be
27made within the period specified by Section 659 for the filing and
28service of a notice of intention to move for a new trial. The moving,
29opposing, and reply briefs and any accompanying documents shall
30be filed and served within the periods specified by Sectionbegin delete 659aend delete
31begin insert
659a,end insert and the hearing on the motion shall be set in the same manner
32as the hearing on a motion for new trial under Section 660. The
33making of a motion for judgment notwithstanding the verdict shall
34not extend the time within which a party may file and serve notice
35of intention to move for a new trial. The court shall not rule upon
36the motion for judgment notwithstanding the verdict until the
37expiration of the time within which a motion for a new trial must
38be served and filed, and if a motion for a new trial has been filed
39with the court by the aggrieved party, the court shall rule upon
40both motions at the same time. The power of the court to rule on
P56 1a motion for judgment notwithstanding the verdict shall not extend
2beyond the last date upon which it has the power to rule on a
3motion for a new trial. If a motion for judgment notwithstanding
4the verdict is not determined before that date, the effect shall be a
5denial of that motion without further order of the court.
6(c) If the motion for judgment notwithstanding the verdict is
7denied and if a new trial is denied, the appellate court shall,begin delete whenend delete
8begin insert ifend insert it appears that the motion for judgment notwithstanding the
9verdict should have been granted, order judgment to be so entered
10on appeal from the judgment or from the order denying the motion
11for judgment notwithstanding the verdict.
12(d) If a new trial is granted to the party moving for judgment
13notwithstanding the verdict, and the motion for judgment
14notwithstanding the verdict is denied, the order denying the motion
15for judgment notwithstanding the verdict shall nevertheless be
16reviewable on appeal from that order by the aggrieved party. If
17the court grants the
motion for judgment notwithstanding the
18verdict or of its own motion directs the entry of judgment
19notwithstanding the verdict and likewise grants the motion for a
20new trial, the order granting the new trial shall be effective only
21if, on appeal, the judgment notwithstanding the verdict is reversed,
22and the order granting a new trial is not appealed from or, if
23appealed from, is affirmed.
Section 1277 of the Code of Civil Procedure is
25amended to read:
(a) (1) If a proceeding for a change of name is
27commenced by the filing of a petition, except as provided in
28subdivisions (b), (c), and (e), the court shall thereupon make an
29order reciting the filing of the petition, the name of the person by
30whom it is filed, and the name proposed. The order shall direct all
31persons interested in the matter to appear before the court at a time
32and place specified, which shall be not less than 6 weeks nor more
33than 12 weeks from the time of making the order, unless the court
34orders a different time, to show cause why the application for
35change of name should not be granted. The order shall direct all
36persons interested in the matter to make known any objection that
37they may have to the granting of the petition for change of name
38by filing a written objection, which includes
the reasons for the
39objection, with the court at least two court days before the matter
40is scheduled to be heard and by appearing in court at the hearing
P57 1to show cause why the petition for change of name should not be
2granted. The order shall state that, if no written objection is timely
3filed, the court may grant the petition without a hearing. If the
4petition seeks to conform the petitioner’s name to his or her gender
5identity and no objection is timely filed, the court shall grant the
6petition without a hearing.
7(2) A copy of the order to show cause shall be published
8pursuant to Section 6064 of the Government Code in a newspaper
9of general circulation to be designated in the order published in
10the county. Ifbegin delete noend deletebegin insert aend insert newspaper of general circulation isbegin insert
notend insert published
11in the county, a copy of the order to show cause shall be posted
12by the clerk of the court in three of the most public places in the
13county in which the court is located, for a like period. Proof shall
14be made to the satisfaction of the court of this publication or
15begin delete posting,end deletebegin insert postingend insert at the time of the hearing of the application.
16(3) Four weekly publications shall be sufficient publication of
17the order to show cause. If the order is published in a daily
18newspaper, publication once a week for four successive weeks
19shall be sufficient.
20(4) If a petition has been filed for a minor by a parent and the
21other parent, if living, does not join in
consenting thereto, the
22petitioner shall cause, not less than 30 daysbegin delete prior toend deletebegin insert beforeend insert the
23hearing, to be served notice of the time and place of the hearing
24or a copy of the order to show cause on the other parent pursuant
25to Section 413.10, 414.10, 415.10, or 415.40. If notice of the
26hearing cannot reasonably be accomplished pursuant to Section
27415.10 or 415.40, the court may order that notice be given in a
28manner that the court determines is reasonably calculated to give
29actual notice to the nonconsenting parent. In that case, if the court
30determines that notice by publication is reasonably calculated to
31give actual notice to the nonconsenting parent, the court may
32determine that publication of the order to show cause pursuant to
33this subdivision is sufficient notice to the nonconsenting parent.
34(5) If the petition for a change of name is sought in order to
35conform the petitioner’s name to his or her gender identity, the
36action for a change of name is exempt from the requirement for
37publication of the order to show cause under this subdivision.
38(b) (1) If the petition for a change of name alleges a reason or
39circumstance described in paragraph (2), and the petitioner has
40established that he or she is an active participant in the address
P58 1confidentiality program created pursuant to Chapter 3.1
2(commencing with Section 6205) of Division 7 of Title 1 of the
3Government Code, and that the name he or she is seeking to acquire
4is on file with the Secretary of State, the action for a change of
5name is exempt from the requirement for publication of the order
6to show cause under subdivision (a), and the petition and the order
7of the court shall, in lieu of
reciting the proposed name, indicate
8that the proposed name is confidential and is on file with the
9Secretary of State pursuant to the provisions of the address
10confidentiality program.
11(2) The procedure described in paragraph (1) applies to petitions
12alleging any of the following reasons or circumstances:
13(A) To avoid domestic violence, as defined in Section 6211 of
14the Family Code.
15(B) To avoid stalking, as defined in Section 646.9 of the Penal
16Code.
17(C) The petitioner is, or is filing on behalf of, a victim of sexual
18assault, as defined in Section 1036.2 of the Evidence Code.
19(3) For any petition under this subdivision, the current legal
20name of the petitioner shall be kept confidential
by the court and
21shall not be published or posted in the court’s calendars, indexes,
22or register of actions, as required by Article 7 (commencing with
23Section 69840) of Chapter 5 of Title 8 of the Government Code,
24or by any means or in any public forum, including a hardcopy or
25an electronic copy, or any other type of public media or display.
26(4) Notwithstanding paragraph (3), the court may, at the request
27of the petitioner, issue an order reciting the name of the petitioner
28at the time of the filing of the petition and the new legal name of
29the petitioner as a result of the court’s granting of the petition.
30(5) A petitioner may request that the court file the petition and
31any other papers associated with the proceeding under seal. The
32court may consider the request at the same time as the petition for
33name change, and may grant the request in any case in which the
34court finds that
all of the following factors apply:
35(A) There exists an overriding interest that overcomes the right
36of public access to the record.
37(B) The overriding interest supports sealing the record.
38(C) A substantial probability exists that the overriding interest
39will be prejudiced if the record is not sealed.
40(D) The proposed order to seal the records is narrowly tailored.
P59 1(E) No less restrictive means exist to achieve the overriding
2interest.
3(c) A proceeding for a change of name for a witness participating
4in the state Witnessbegin delete Protectionend deletebegin insert
Relocation and Assistanceend insert
Program
5established by Title 7.5 (commencing with Section 14020) of Part
64 of the Penal Code who has been approved for the change of name
7by the program is exempt from the requirement for publication of
8the order to show cause under subdivision (a).
9(d) If an application for change of name is brought as part of
10an action under the Uniform Parentage Act (Part 3 (commencing
11with Section 7600) of Division 12 of the Family Code), whether
12as part of a petition or cross-complaint or as a separate order to
13show cause in a pending action thereunder, service of the
14application shall be made upon all other parties to the action in a
15like manner as prescribed for the service of a summons, as set forth
16in Article 3 (commencing with Section 415.10) of Chapter 4 of
17Title 5 of Part 2. Upon the setting of a hearing on the issue, notice
18of the hearing shall be given to all parties in the action in a like
19manner and within the time limits
prescribed generally for the type
20of hearing (whether trial or order to show cause) at which the issue
21of the change of name is to be decided.
22(e) If a guardian files a petition to change the name of his or her
23minor ward pursuant to Section 1276:
24(1) The guardian shall provide notice of the hearing to any living
25parent of the minor by personal service at least 30 daysbegin delete prior toend delete
26begin insert beforeend insert the hearing.
27(2) If either or both parents are deceased or cannot be located,
28the guardian shall cause, not less than 30 daysbegin delete prior toend deletebegin insert
beforeend insert the
29hearing, to be served a notice of the time and place of the hearing
30or a copy of the order to show cause on the child’s grandparents,
31if living, pursuant to Section 413.10, 414.10, 415.10, or 415.40.
32(f) This section shall become operative on July 1, 2014.
Section 2030.010 of the Code of Civil Procedure is
34amended to read:
(a) Any party may obtain discovery within the scope
36delimited bybegin delete Chaptersend deletebegin insert Chapterend insert 2 (commencing with Section
37begin delete 2017.010) and 3 (commencing with Section 2017.710),end deletebegin insert 2017.010),end insert
38 and subject to the restrictions set forth in Chapter 5 (commencing
39with Section 2019.010), by propounding to any other party to the
40action written interrogatories to be answered under oath.
P60 1(b) An interrogatory may relate to whether another party is
2making a certain contention, or to the facts, witnesses, and writings
3on which a contention is based. An interrogatory is not
4objectionable because an answer to it involves an opinion or
5contention that relates to fact or the application of law to fact, or
6would be based on information obtained or legal theories developed
7in anticipation of litigation or in preparation for trial.
Section 9321.1 of the Commercial Code is amended
9to read:
A licensee of nonexclusive rights in a motion picture
11that is produced pursuant to one or more collective bargaining
12agreements governed by the laws of the United States takes its
13nonexclusive license inbegin delete suchend deletebegin insert thatend insert motion picture subject to any
14perfected security interest securing the obligation to pay residuals
15as set forth in the applicable collective bargaining agreement and
16arising from exploitation underbegin delete suchend deletebegin insert theend insert license. The terms “motion
17picture” and “residuals” have
the meaning ascribed tobegin delete suchend deletebegin insert
thoseend insert
18 terms under the applicable collective bargaining agreements.
The heading of Part 6 (commencing with Section
203601) of Division 3 of the Commercial Code is amended to read:
21
24
begin insert
Section 5047 of the Corporations Code is amended
28to read:
Exceptbegin delete whereend deletebegin insert asend insert otherwise expressly provided,
30“directors” means natural persons, designated in the articles or
31bylaws or elected by the incorporators, and their successors and
32natural persons designated,begin delete electedend deletebegin insert elected,end insert or appointed by any
33other name or title to act as members of the governing body of the
34corporation. If the articles or bylaws designate that a natural person
35is a director or a member of the governing body of the corporation
36by reason of occupying a specified
position within the corporation
37or outside the corporation, without limiting that person’s right to
38vote as a member of the governing body, that person shall be a
39director for all purposes and shall have the same rights and
40obligations, including voting rights, as the other directors. A person
P61 1who does not have authority to vote as a member of the governing
2body of the corporation, is not a director as that term is used in
3this division regardless of title.
Section 12637 of the Corporations Code, as added
5by Section 54 of Chapter 589 of the Statutes of 1996, is amended
6and renumbered to read:
(a) A corporation in the process of winding up may
9dispose of the known claims against it by following the procedure
10described in this section.
11(b) The written notice to known creditors and claimants required
12by subdivision (c) of Section 12633 shall comply with all of the
13following requirements:
14(1) Describe any information that must be included in a claim.
15(2) Provide a mailing address where a claim may be sent.
16(3) State the deadline, whichbegin delete mayend deletebegin insert shallend insert not be fewer than 120
17days from the effective date of the written notice, by which the
18corporation must receive the claim.
19(4) State that the claim will be barred if not received by the
20deadline.
21(c) A claim against the corporation is barred if any of the
22following occur:
23(1) A claimant who has been given the written notice under
24subdivision (b) does not deliver the claim to the corporation by
25the deadline.
26(2) A claimant whose claim was rejected by
the corporation
27does not commence a proceeding to enforce the claim within 90
28days from the effective date of the rejection notice.
29(d) For purposes of this sectionbegin insert,end insert “claim” does not include a
30contingent liability or a claim based on an event occurring after
31the effective date of dissolution.
Section 25620 of the Corporations Code is amended
33to read:
(a) Notwithstanding any other law, the commissioner
35may by rule or order prescribe circumstances under which to accept
36electronic records or electronic signatures. This sectionbegin delete shallend deletebegin insert doesend insert
37 not require the commissioner to accept electronic records or
38electronic signatures.
39(b) For purposes of this section, the following terms have the
40following meanings:
P62 1(1) “Electronic record” means a record created, generated, sent,
2communicated, received, or stored by electronic means. “Electronic
3record” also includes, but is
not limited to, all of the following:
4(A) An application, amendment, supplement, and exhibit, filed
5for any qualification, registration, order, permit, certificate, license,
6consent, or other authority.
7(B) A financial statement,begin delete reports,end deletebegin insert
report,end insert or advertising.
8(C) An order, permit, certificate, license, consent, or other
9authority.
10(D) A notice of public hearing, accusation, and statement of
11issues in connection with any application, qualification,
12registration, order, permit, certificate, license, consent, or other
13authority.
14(E) A proposed decision of a hearing officer and a decision of
15the commissioner.
16(F) The transcripts of a hearing.
17(G) A release, newsletter, interpretive opinion, determination,
18or specific ruling.
19(H) Correspondence between a party and the commissioner
20directly relating to any document listed in
subparagraphs (A) to
21(G), inclusive.
22(2) “Electronic signature” means an electronic sound, symbol,
23or process attached to or logically associated with an electronic
24record and executed or adopted by a person with the intent to sign
25the electronic record.
26(c) The Legislature finds and declares that the Department of
27Business Oversight has continuously implemented methods to
28accept records filed electronically, including broker-dealer and
29investment adviser applications, and is encouraged to continue to
30expand its use of electronic filings to the extent feasible, as budget,
31resources, and equipment are made available to accomplish that
32goal.
Section 31116 of the Corporations Code is amended
34to read:
(a) Except as provided in subdivision (b), if no stop
36order under Section 31115 is in effect under this law, registration
37of the offer of franchises automatically becomes effective at 12
38begin delete o’clock noon,end deletebegin insert p.m.,end insert California time, of the 30th business day after
39the filing of a complete application for registration or the last
P63 1preeffective amendment thereto, or atbegin delete suchend deletebegin insert anend insert earlier timebegin delete asend deletebegin insert
thatend insert
2 the commissioner determines.
3(b) With respect to any application for registration or the last
4amendment thereto filed between January 1, 1971, and March 15,
51971, if no stop order under Section 31115 is in effect under this
6law, registration becomes effective on April 15, 1971; with respect
7to any application filed after March 15, 1971 and before May 10,
81971, if no stop order under Section 31115 is in effect under this
9law, registration becomes effective on June 1, 1971, or the 15th
10business day after the filing, whichever is the later, or atbegin delete suchend deletebegin insert anend insert
11 earlier timebegin delete asend deletebegin insert
thatend insert the commissioner determines.
12(c) For purposes of this section, “complete application” means
13an application that contains the appropriate filing fee, Uniform
14Franchise Disclosure Document, and all additional exhibits,
15including financial statements in conformity with regulations of
16the commissioner. “Preeffective amendment” means an amendment
17to an application that is filed before the effective date of the
18registration of the sale of franchises.
Section 31121 of the Corporations Code is amended
20to read:
(a) The registration may be renewed for additional
22periods of one year each, unless the commissioner by rule or order
23specifies a different period, by submitting to the commissioner a
24renewal application before the expiration of the registration. If no
25stop order or other order under Section 31115 is in effect under
26this law, registration of the offer of the franchises automatically
27becomes renewed effective at 12begin delete o'clock noon,end deletebegin insert p.m.,end insert California
28time, of the 30th business day after the filing of a complete
29application for registration or the last preeffective amendment or
30atbegin delete suchend deletebegin insert
anend insert earlier timebegin delete asend deletebegin insert thatend insert the commissioner determines.
31(b) For purposes of this section, “complete application” means
32an application that contains the appropriate filing fee, Uniform
33Franchise Disclosure Document, and all additional exhibits,
34including financial statements in conformity with regulations of
35the commissioner. “Preeffective amendment” means an amendment
36to an application that is filed before the effective date of the
37registration of the sale of franchises.
Section 31158 of the Corporations Code is amended
39to read:
(a) Notwithstanding any other law, the commissioner
2may by rule or order prescribe circumstances under which to accept
3electronic records or electronic signatures. This sectionbegin delete shallend deletebegin insert doesend insert
4 not require the commissioner to accept electronic records or
5electronic signatures.
6(b) For purposes of this section, the following terms have the
7following meanings:
8(1) “Electronic record” means an initial registration application,
9registration renewal statement, preeffective amendment,
10posteffective amendment, or material
modification and any other
11record created, generated, sent, communicated, received, or stored
12by electronic means. “Electronic record” also includes, but is not
13limited to, all of the following:
14(A) An application, amendment, supplement, and exhibit, filed
15for any registration, order, license, consent, or other authority.
16(B) A financial statement,begin delete reports,end deletebegin insert report,end insert or advertising.
17(C) An order, license, consent, or other authority.
18(D) A notice of public hearing, accusation, and statement of
19issues in connection with any application, registration, order,
20license,
consent, or other authority.
21(E) A proposed decision of a hearing officer and a decision of
22the commissioner.
23(F) The transcripts of a hearing.
24(G) A release, newsletter, interpretive opinion, determination,
25or specific ruling.
26(H) Correspondence between a party and the commissioner
27directly relating to any document listed in subparagraphs (A) to
28(G), inclusive.
29(2) “Electronic signature” means an electronic sound, symbol,
30or process attached to or logically associated with an electronic
31record and executed or adopted by a person with the intent to sign
32the electronic record.
33(c) The Legislature finds and declares that the
Department of
34Business Oversight has continuously implemented methods to
35accept records filed electronically, including broker-dealer and
36investment adviser applications, and is encouraged to continue to
37expand its use of electronic filings to the extent feasible, as budget,
38resources, and equipment are made available to accomplish that
39goal.
Section 1313 of the Education Code is amended to
2read:
Each county employee whose status is changed by this
4article, and who is in employment and a member of a county
5retirement system other than one provided by contract with the
6begin delete Stateend deletebegin insert Publicend insert Employees’ Retirement System on the date ofbegin delete suchend delete
7begin insert theend insert change, shall become eligible for membership in thebegin delete Stateend delete
8begin insert
Publicend insert Employees’ Retirement System in accordance with the
9begin delete Stateend deletebegin insert
Publicend insert Employees’ Retirement Law with respect to hisbegin insert or
10herend insert employment thereafter, and shall be subject to the reciprocal
11benefits provided by said systems; provided, thatbegin delete suchend deletebegin insert theend insert employee
12may elect to continue in membership ofbegin delete suchend deletebegin insert theend insert county retirement
13system with respect tobegin delete suchend deletebegin insert his or herend insert
employment thereafter, in
14which event the same appropriations and transfers of funds shall
15be made to the retirement fund of the county system forbegin delete suchend deletebegin insert theend insert
16 employee as those required of the county under the county
17retirement law, andbegin delete suchend deletebegin insert theseend insert amounts shall be legal charges
18against the county school service fund. The election authorized by
19this section shall be made no later than the date preceding the date
20upon which his status is changed in accordance with procedures
21to be established by the board of supervisors, which shall allow at
22least 30 days to make the election. The election once madebegin delete mayend delete
23begin insert
shallend insert not be rescinded. An employee who does not elect to continue
24membership in the county system shall be deemed to have
25discontinued county employment for purposes of the county system
26at the close of the day preceding the date upon which his status
27changes.
Section 2575 of the Education Code is amended to
29read:
(a) Commencing with the 2013-14 fiscal year and for
31each fiscal year thereafter, the Superintendent shall calculate a
32base entitlement for the transition to the county local control
33funding formula for each county superintendent of schools based
34on the sum of the amounts computed pursuant to paragraphs (1)
35to (3), inclusive, as adjusted pursuant to paragraph (4):
36(1) Revenue limits in the 2012-13 fiscal year pursuant to Article
373 (commencing with Section 2550) of Chapter 12, as that article
38read on January 1, 2013, adjusted only for changes in average daily
39attendance claimed by the county superintendent of schools for
40pupils identified in clauses (i), (ii), and (iii) of subparagraph (A)
P66 1of paragraph (4) of subdivision (c) of Section 2574 and for pupils
2attending
juvenile court schools. For purposes of this paragraph,
3the calculation of an amount per unit of average daily attendance
4for pupils attending juvenile court schools shall be considered final
5for purposes of this section as of the annual apportionment for the
62012-13 fiscal year, as calculated for purposes of the certification
7required on or before February 20, 2014, pursuant to Sections
841332 and 41339. All other average daily attendance claimed by
9the county superintendent of schools and any other average daily
10attendance used for purposes of calculating revenue limits pursuant
11to Article 3 (commencing with Section 2550) of Chapter 12, as
12that article read on January 1, 2013, shall be considered final for
13purposes of this section as of the annual apportionment for the
142012-13 fiscal year, as calculated for purposes of the certification
15required on or before February 20, 2014, pursuant to Sections
1641332 and 41339.
17(2) The sum of all of the following:
18(A) The amount of funding received from appropriations
19contained in Section 2.00 of the Budget Act of 2012, as adjusted
20by Section 12.42, in the following items: 6110-104-0001,
216110-105-0001, 6110-107-0001, 6110-108-0001, 6110-111-0001,
226110-124-0001, 6110-128-0001, 6110-137-0001, 6110-144-0001,
236110-156-0001, 6110-181-0001, 6110-188-0001, 6110-189-0001,
246110-190-0001, 6110-193-0001, 6110-195-0001, 6110-198-0001,
256110-204-0001, 6110-208-0001, 6110-209-0001, 6110-211-0001,
266110-212-0001, 6110-227-0001, 6110-228-0001, 6110-232-0001,
276110-240-0001, 6110-242-0001, 6110-243-0001, 6110-244-0001,
286110-245-0001, 6110-246-0001, 6110-247-0001, 6110-248-0001,
296110-260-0001, 6110-265-0001, 6110-266-0001, 6110-267-0001,
306110-268-0001, and 6360-101-0001, 2012-13 fiscal year funding
31for the Class Size Reduction Program pursuant to Chapter 6.10
32(commencing with Section 52120) of Part 28 of Division 4 of Title
332, as that chapter read on January 1,
2013, and 2012-13 fiscal year
34funding for pupils enrolled in community day schools who are
35mandatorily expelled pursuant to subdivision (d) of Section 48915.
36For purposes of this subparagraph, the 2012-13 fiscal year
37appropriations described in this subparagraph shall be considered
38final as of the annual apportionment for the 2012-13 fiscal year,
39as calculated for purposes of the certification required on or before
40February 20, 2014, pursuant to Sections 41332 and 41339.
P67 1(B) The amount of local revenues used to support a regional
2occupational center or program established and maintained by a
3county superintendent of schools pursuant to Section 52301.
4(3) For the 2014-15 fiscal year and for each fiscal year
5thereafter, the sum of the amounts apportioned to the county
6superintendent of schools pursuant to subdivision (f) in all prior
7years.
8(4) The revenue limit amount determined pursuant to paragraph
9(1) shall be increased by the difference determined by subtracting
10the amount provided per unit of average daily attendance in
11paragraph (1) for pupils attending a school that is eligible for
12funding pursuant to paragraph (2) of subdivision (b) of Section
1342285 from the amount of funding that was provided to eligible
14schools in the 2012-13 fiscal year pursuant to Sections 42284 and
1542238.146, as those sections read on January 1, 2013.
16(b) The Superintendent shall annually compute a county local
17control funding formula transition adjustment for each county
18superintendent of schools as follows:
19(1) Subtract the amount computed pursuant to subdivision (a)
20from the amount computed pursuant to subdivision (e) of Section
212574. A difference of less than zero shall be
deemed to be zero.
22(2) Divide the difference for each county superintendent of
23schools calculated pursuant to paragraph (1) by the total sum of
24the differences for all county superintendents of schools calculated
25pursuant to paragraph (1).
26(3) Multiply the proportion calculated for each county
27superintendent of schools pursuant to paragraph (2) by the amount
28of funding specifically appropriated for purposes of subdivision
29(f). The amount calculated shall not exceed the difference for the
30county superintendent of schools calculated pursuant to paragraph
31(1).
32(c) The Superintendent shall subtract from the amount calculated
33pursuant to subdivision (a) the sum of each of the following:
34(1) Local property tax revenues received pursuant to Section
352573 in the
then current fiscal year.
36(2) Any amounts that the county superintendent of schools was
37required to maintain as restricted and not available for expenditure
38in the 1978-79 fiscal year as specified in the second paragraph of
39subdivision (c) of Section 6 of Chapter 292 of the Statutes of 1978,
40as amended by Chapter 51 of the Statutes of 1979.
P68 1(3) The amount received pursuant to subparagraph (C) of
2paragraph (3) of subdivision (a) of Section 33607.5 of the Health
3and Safety Code that is considered property taxes pursuant to that
4section.
5(4) The amount, if any, received pursuant to Sections 34177,
634179.5, 34179.6, 34183, and 34188 of the Health and Safety
7Code.
8(5) The amount, if any, received pursuant to subparagraph (B)
9of paragraph (3) of subdivision
(e) of Section 36 of Article XIII
10of the California Constitution.
11(d) The Superintendent shall subtract from the amount computed
12pursuant to subdivision (e) of Section 2574 the sum of the amounts
13computed pursuant to paragraphs (1) to (5), inclusive, of
14subdivision (c).
15(e) The Superintendent shall annually apportion to each county
16superintendent of schools the amount calculated pursuant to
17subdivision (c) unless the amount computed pursuant to subdivision
18(c) is negative. If the amount computed is negative, except as
19provided in subdivision (f), an amount of property tax of the county
20superintendent of schools equal to the negative amount shall be
21deemed restricted and not available for expenditure during the
22fiscal year. In the following fiscal year, that amount, excluding
23any amount of funds used for purposes of subdivision (f), shall be
24considered restricted local property tax
revenue for purposes of
25subdivision (a) of Section 2578. State aid shall not be apportioned
26to the county superintendent of schools pursuant to this subdivision
27if the amount computed pursuant to subdivision (c) is negative.
28(f) (1) The Superintendent shall apportion, from an
29appropriation specifically made for this purpose, the amount
30computed pursuant to subdivision (b), or, if the amount computed
31pursuant to subdivision (c) is negative, the sum of the amounts
32computed pursuant to subdivisions (b) and (c) if the sumbegin delete ifend deletebegin insert
isend insert
33 greater than zero.
34(2) The Superintendent shall apportion any portion of the
35appropriation made for purposes of paragraph (1) that is not
36apportioned pursuant to paragraph (1) pursuant to the following
37calculation:
38(A) Add the amount calculated pursuant to subdivision (b) to
39the amount computed pursuant to subdivision (a) for a county
40superintendent of schools.
P69 1(B) Subtract the amount computed pursuant to subparagraph
2(A) from the amount computed pursuant to subdivision (e) of
3Section 2574 for the county superintendent of schools.
4(C) Divide the difference for the county superintendent of
5schools computed pursuant to subparagraph (B) by the sum of the
6differences for all county superintendents of schools
computed
7pursuant to subparagraph (B).
8(D) Multiply the proportion computed pursuant to subparagraph
9(C) by the unapportioned balance in the appropriation. That product
10shall be the county superintendent of schools’ proportion of total
11need.
12(E) Apportion to each county superintendent of schools the
13amount calculated pursuant to subparagraph (D), or if subdivision
14(c) is negative, apportion the sums of subdivisions (b) and (c) and
15subparagraph (D) of this subdivision if the sum is greater than
16zero.
17(F) The Superintendent shall repeat the computation made
18pursuant to this paragraph, accounting for any additional amounts
19apportioned after each computation, until the appropriation made
20for purposes of paragraph (1) is fully apportioned.
21(G) The total
amount apportioned pursuant to this subdivision
22to a county superintendent of schools shall not exceed the
23difference for the county superintendent of schools calculated
24pursuant to paragraph (1) of subdivision (b).
25(H) For purposes of this paragraph, the proportion of need that
26is funded from any appropriation made specifically for purposes
27of this subdivision in the then current fiscal year shall be considered
28fixed as of the second principal apportionment for that fiscal year.
29Adjustments to a county superintendent of schools’ total need
30computed pursuant to subparagraph (D) after the second principal
31apportionment for the then current fiscal year shall be funded based
32on the fixed proportion of need that is funded for that fiscal year
33pursuant to this subdivision, and shall be continuously appropriated
34pursuant to Section 14002.
35(g) (1) For a county
superintendent of schools for whom, in the
362013-14 fiscal year, the amount computed pursuant to subdivision
37(c) is less than the amount computed pursuant to subdivision (d),
38in the first fiscal year following the fiscal year in which the sum
39of the apportionments computed pursuant to subdivisions (e) and
40(f) is equal to, or greater than, the amount computed pursuant to
P70 1subdivision (d) of this section, the Superintendent shall apportion
2to the county superintendent of schools the amount computed in
3subdivision (d) in that fiscal year and each fiscal year thereafter
4instead of the amounts computed pursuant to subdivisions (e) and
5(f).
6(2) For a county superintendent of schools for whom, in the
72013-14 fiscal year, the amount computed pursuant to subdivision
8(c) is greater than the amount computed pursuant to subdivision
9(d), in the first fiscal year in which the amount computed pursuant
10to subdivision (c) would be less than the amount computed
pursuant
11to subdivision (d), the Superintendent shall apportion to the county
12superintendent of schools the amount computed in subdivision (d)
13in that fiscal year and each fiscal year thereafter instead of the
14amounts computed pursuant to subdivisions (e) and (f).
15(3) In each fiscal year, the Superintendent shall determine the
16percentage of county superintendents of schools that are
17apportioned funding that is less than the amount computed pursuant
18to subdivision (d), as of the second principal apportionment of the
19fiscal year. If the percentage is less than 10 percent, the
20Superintendent shall apportion to those county superintendents of
21schools funding equal to the amount computed in subdivision (d)
22in that fiscal year and for each fiscal year thereafter instead of the
23amounts calculated pursuant to subdivisions (e) and (f).
24(4) Commencing with the first fiscal year after the
25
apportionments in paragraph (3) are made, the adjustments in
26paragraph (4) of subdivision (a) of Section 2574 and subparagraph
27(B) of paragraph (1) of subdivision (c) of Section 2574 shall be
28made only if an appropriation for those purposes is included in the
29annual Budget Act.
30(5) If the calculation pursuant to subdivision (d) is negative and
31the Superintendent apportions to a county superintendent of schools
32the amount computed pursuant to subdivision (d) pursuant to
33paragraph (1), (2), or (3) of this subdivision, an amount of property
34tax of the county superintendent of schools equal to the negative
35amount shall be deemed restricted and not available for expenditure
36during that fiscal year. In the following fiscal year the restricted
37amount shall be considered restricted local property tax revenue
38for purposes of subdivision (a) of Section 2578.
39(h) Commencing with the 2013-14
fiscal year, the
40Superintendent shall apportion to a county superintendent of
P71 1schools an amount of state aid, including any amount apportioned
2pursuant to subdivisions (f) and (g), that isbegin delete noend deletebegin insert notend insert less than the
3amount calculated in subparagraph (A) of paragraph (2) of
4subdivision (a).
5(i) (1) For the 2013-14 and 2014-15 fiscal years only, a county
6superintendent of schools who, in the 2012-13 fiscal year, from
7any of the funding sources identified in paragraph (1) or (2) of
8subdivision (a), received funds on behalf of, or provided funds to,
9a regional occupational center or program joint powers agency
10established in accordance with Article 1 (commencing with Section
116500) of Chapter 5 of Division 7 of Title 1 of the Government
12Code for
purposes of providing instruction to pupils enrolled in
13grades 9 to 12, inclusive, shall not redirect that funding for another
14purpose unless otherwise authorized by law or pursuant to an
15agreement between the regional occupational center or program
16joint powers agency and the contracting county superintendent of
17schools.
18(2) For the 2013-14 and 2014-15 fiscal years only, if a regional
19occupational center or program joint powers agency established
20in accordance with Article 1 (commencing with Section 6500) of
21Chapter 5 of Division 7 of Title 1 of the Government Code for
22purposes of providing instruction to pupils enrolled in grades 9 to
2312, inclusive, received, in the 2012-13 fiscal year, an
24apportionment of funds directly from any of the funding sources
25identified in subparagraph (A) of paragraph (2) of subdivision (a),
26the Superintendent shall apportion that same amount to the regional
27occupational center or program joint powers agency.
28(j) For the 2013-14 and 2014-15 fiscal years only, a county
29superintendent of schools who, in the 2012-13 fiscal year, from
30any of the funding sources identified in paragraph (1) or (2) of
31subdivision (a), received funds on behalf of, or provided funds to,
32a home-to-school transportation joint powers agency established
33in accordance with Article 1 (commencing with Section 6500) of
34Chapter 5 of Division 7 of Title 1 of the Government Code for
35purposes of providing pupil transportation shall not redirect that
36funding for another purpose unless otherwise authorized by law
37or pursuant to an agreement between the home-to-school
38transportation joint powers agency and the contracting county
39superintendent of schools.
P72 1(k) (1) In addition to subdivision (j), of the funds a county
2superintendent of schools receives for home-to-school
3transportation programs, the county
superintendent of schools shall
4expend, pursuant to Article 2 (commencing with Section 39820)
5of Chapter 1 of Part 23.5 of Division 3 of Title 2, Article 10
6(commencing with Section 41850) of Chapter 5 of Part 24 of
7Division 3 of Title 2, and the Small School District Transportation
8program, as set forth in Article 4.5 (commencing with Section
942290) of Chapter 7 of Part 24 of Division 3 of Title 2, no less for
10those programs than the amount of funds the county superintendent
11of schools expended for home-to-school transportation in the
122012-13 fiscal year.
13(2) For the 2013-14 and 2014-15 fiscal years only, if a
14home-to-school transportation joint powers agency established in
15accordance with Article 1 (commencing with Section 6500) of
16Chapter 5 of Division 7 of Title 1 of the Government Code for
17purposes of providing pupil transportation received, in the 2012-13
18fiscal year, an apportionment of funds directly from the
19Superintendent from any of
the funding sources identified in
20subparagraph (A) of paragraph (2) of subdivision (a), the
21Superintendent shall apportion that same amount to the
22home-to-school transportation joint powers agency.
23(3) For the 2013-14 and 2014-15 fiscal years only, of the funds
24a county superintendent of schools receives for purposes of regional
25occupational centers or programs, or adult education, the county
26superintendent of schools shall expend no less for each of those
27programs than the amount of funds the county superintendent of
28schools expended for purposes of regional occupational centers
29or programs, or adult education, respectively, in the 2012-13 fiscal
30year. For purposes of this paragraph, a county superintendent of
31schools may include expenditures made by a school district within
32the county for purposes of regional occupational centers or
33programs so long as the total amount of expenditures made by the
34school districts and the county superintendent
of schools equals
35or exceeds the total amount required to be expended for purposes
36of regional occupational centers or programs pursuant to this
37paragraph and paragraph (7) of subdivision (a) of Section 42238.03.
38(l) The funds apportioned pursuant to this section and Section
392574 shall be available to implement the activities required
P73 1pursuant to Article 4.5 (commencing with Section 52060) of
2Chapter 6.1 of Part 28 of Division 4 of Title 2.
Section 2577 of the Education Code is amended to
4read:
Notwithstanding any other law, revenue limit funding
6for county superintendents of schools for the 2012-13 fiscal year
7and prior fiscal years shall continue to be adjusted pursuant to
8Article 3 (commencing with Section 2550) of Chapter 12, as that
9begin delete sectionend deletebegin insert articleend insert read on January 1, 2013.
Section 8261 of the Education Code is amended to
11read:
(a) The Superintendent shall adopt rules and regulations
13pursuant to this chapter. The rules and regulations shall include,
14but not be limited to, provisionsbegin delete whichend deletebegin insert thatend insert do all of the following:
15(1) Provide clear guidelines for the selection of agencies when
16child development contracts are let, including, but not limited to,
17specification that any agency headquartered in the proposed service
18area on January 1, 1985, will be given priority for a new contract
19in that area, unless the department makes a written determination
20that (A) the agency is not able to deliver the level of
services
21specified in the request for proposal, or (B) the department has
22notified the agency that it is not in compliance with the terms of
23its contract.
24(2) Provide for a contract monitoring system to ensure that
25agencies expend funds received pursuant to this chapter in
26accordance with the provisions of their contracts.
27(3) Specify adequate standards of agency performance.
28(4) Establish reporting requirements for service reports,
29including provisions for varying the frequency with which these
30reports are to be submitted on the basis of agency performance.
31(5) Specify standards for withholding payments to agencies that
32fail to submit required fiscal reports.
33(6) Set forth standards for
department site visits to contracting
34agencies, including, but not limited to, specification as to the
35purpose of the visits, the personnel that will perform these visits,
36and the frequency of these visits which shall be as frequently as
37staff and budget resources permit. By September 1 of each year,
38the department shall report to the Senate Education, Senate Health
39and Human Services, Assembly Education, and Assembly Human
P74 1Services Committees on the number of visits conducted during
2the previous fiscal year pursuant to this paragraph.
3(7) Authorize the department to develop a process that requires
4every contracting agency to recompete for continued funding no
5less frequently than every five years.
6(b) The Superintendent shall consult with the State Department
7of Social Services with respect to rules and regulations adopted
8relative to the disbursal of federal funds under Title XX
of the
9federal Social Security Act.
10(c) For purposes of expediting the implementation of state or
11federal legislation to expand child care services, the Superintendent
12may waive (1) the regulations regarding the point qualifications
13for, and the process and scoring of, interviews of contract
14applicants pursuant to Section 18002 of Title 5 of the California
15Code of Regulations, or (2) the time limitations for scheduling and
16notification of appeal hearings and their results pursuant to Section
1718003 of Title 5 of the California Code of Regulations. The
18Superintendent shall ensure that the appeal hearings provided for
19in Section 18003 of Title 5 of the California Code of Regulations
20are conducted in a timely manner.
21(d) (1) Child care and development programs operated under
22contract from funds made available pursuant to the federal Child
23Care and Development
Fund, shall be administered according to
24begin delete Divisionend deletebegin insert Chapterend insert 19 (commencing with Section 17906) ofbegin delete Chapterend delete
25begin insert
Divisionend insert 1 of Title 5 of the California Code of Regulations, unless
26provisions of these regulations conflict with federal regulations.
27If state and federal regulations conflict, the federal regulations
28shall apply unless a waiver of federal regulations is authorized.
29(2) For purposes of this section, “Child Care and Development
30Fund” has the same meaning as in Section 98.2 of Title 45 of the
31Code of Federal Regulations.
Section 8273.1 of the Education Code is amended to
33read:
(a) Families receiving services pursuant to
35subparagraph (B) of paragraph (1) of subdivision (b) of Section
368263 may be exempt from family fees for up to three months.
37(b) Families receiving services pursuant to subparagraph (C) of
38paragraph (1) of subdivision (b) of Section 8263 may be exempt
39from family fees for up to 12 months.
P75 1(c) The cumulative periodbegin insert ofend insert time of exemption from family
2fees for families receiving services pursuant to paragraph (1) of
3subdivision (b) of Section 8263 shall not exceed 12 months.
4(d) Notwithstanding
any other law, a family receiving
5CalWORKs cash aid shall not be charged a family fee.
6(e) Notwithstanding any other law, commencing with the
72014-15 fiscal year, family fees shall not be assessed for the
8part-day California preschool program to income eligible families
9whose children are enrolled in that program pursuant to Article 7
10(commencing with Section 8235).
Section 8350.5 of the Education Code, as added by
12Section 3 of Chapter 329 of the Statutes of 1998, is repealed.
Current CalWORKs recipients are eligible for all child
14care services under this article as long as they continue to receive
15aid under Chapter 2 (commencing with Section 11200) of Part 3
16of Division 9 of the Welfare and Institutions Code, or any successor
17program. Family size and income, for purposes of calculating
18family fees, shall be determined pursuant to Section 8263.
Section 8363.1 of the Education Code is amended to
20read:
(a) On orbegin delete before,end deletebegin insert beforeend insert July 1, 2016, the Commission
22on Teacher Credentialing shall review, and update if appropriate,
23the requirements for the issuance and renewal of permits
24authorizing service in the care, development, and instruction of
25children in child care and development programs and permits
26authorizing supervision of a child care and development program.
27(b) This section shall remain in effect only until January 1, 2017,
28and as of that date is repealed, unless a later enacted statute, that
29is enacted before January 1, 2017, deletes or extends that
date.
Section 8450 of the Education Code is amended to
31read:
(a) All child development contractors are encouraged
33to develop and maintain a reserve within the child development
34fund, derived from earned but unexpended funds. Child
35development contractors may retain all earned funds. For purposes
36of this section, “earned funds” are those for which the required
37number of eligible service units have been provided.
38(b) (1) Earned funds shall not be expended for activities
39proscribed by Section 8406.7. Earned but unexpended funds shall
40remain in the contractor’s reserve account within the child
P76 1development fund and shall be expended only by direct service
2child development programs that are funded under contract with
3the department.
4(2) (A) Commencing July 1, 2011, a contractor may retain a
5reserve fund balance, separate from the reserve fund retained
6pursuant to subdivision (c) or (d), equal to 5 percent of the sum of
7the maximum reimbursable amounts of all contracts to which the
8contractor is a party, or two thousand dollars ($2,000), whichever
9is greater. Thisbegin delete paragraphend deletebegin insert subparagraphend insert applies to direct service
10child development contracting agencies that are funded under
11contract with the department and are not a California state
12preschool program contracting agency.
13(B) A California state preschool program contracting agency
14may retain a reserve fund balance, separate from the reserve fund
15retained pursuant to subdivision (c) or (d), equal to 15 percent of
16the sum of the
maximum reimbursable amounts of all contracts to
17which the contractor is a party, or two thousand dollars ($2,000),
18whichever is greater. Of the 15 percent retained, 10 percent shall
19solely be used for purposes of professional development for
20California state preschool program instructional staff. This
21begin delete paragraphend deletebegin insert subparagraphend insert applies to California state preschool
22program contracting agencies that are funded under contract with
23the department.
24(c) Notwithstanding subdivisions (a) and (b), a contractor may
25retain a reserve fund balance for a resource and referral program,
26separate from the balance retained pursuant to subdivision (b) or
27(d), not to exceed 3 percent of the contract amount. Funds from
28this reserve account may be expended only by resource and
referral
29programs that are funded under contract with the department.
30(d) Notwithstanding subdivisions (a) and (b), a contractor may
31retain a reserve fund balance for alternative payment model and
32certificate child care contracts, separate from the reserve fund
33retained pursuant to subdivisions (b) and (c). Funds from this
34reserve account may be expended only by alternative payment
35model and certificate child care programs that are funded under
36contract with the department. The reserve amount allowed by this
37begin delete sectionend deletebegin insert subdivisionend insert may not exceed either of the following,
38whichever is greater:
39(1) Two percent of the sum of the parts of each contract to which
40that contractor is a party that is
allowed for administration pursuant
P77 1to Section 8276.7 and that is allowed for supportive services
2pursuant to the provisions of the contract.
3(2) One thousand dollars ($1,000).
4(e) Each contractor’s audit shall identify any funds earned by
5the contractor for each contract through the provision of contracted
6services in excess of funds expended.
7(f) Any interest earned on reserve funds shall be included in the
8fund balance of the reserve. This reserve fund shall be maintained
9in an interest-bearing account.
10(g) Moneys in a contractor’s reserve fund may be used only for
11expenses that are reasonable and necessary costs as defined in
12subdivision (n) of Section 8208.
13(h) Any reserve fund
balance in excess of the amount authorized
14pursuant to subdivisions (b), (c), and (d) shall be returned to the
15department pursuant to procedures established by the department.
16(i) Upon termination of all child development contracts between
17a contractor and the department, all moneys in a contractor’s
18reserve fund shall be returned to the department pursuant to
19procedures established by the department.
20(j) Expenditures from, additions to, and balances in, the reserve
21fund shall be included in the contracting agency’s annual financial
22statements and audit.
Section 8483.55 of the Education Code is amended
24to read:
(a) From the funds appropriated pursuant to
26subdivision (b) of Section 8483.5, the department may spend 1.5
27percent to cover evaluation costs and to provide training and
28support to ensure quality program implementation, development,
29and sustainability and may pay its costs of awarding and monitoring
30grants.
31(b) Beginning with the 2006-07 fiscal year, 1.5 percent of the
32funds appropriated pursuant to this article shall be available to the
33department for purposes of providing technical assistance,
34evaluation, and training services, and for providing local assistance
35funds to support program improvement and technical assistance.
36(1) The department shall provide
directly, or contract for,
37technical assistance for new programs and any program that is not
38meeting attendance or performance goals, or both, and requests
39that assistance. The department shall allocate an appropriate level
40of technical assistance funds to the regional system of support to
P78 1support program startup within 45 days after grant awards to
2programs.
3(2) (A) Training and support shall include, but is not limited
4to, the development and distribution of voluntary guidelines for
5physical activity programs established pursuant to paragraphbegin delete (2)end delete
6begin insert (1)end insert of subdivision (c) of Section 8482.3, that expand the learning
7opportunities of the schoolday.
8(B) The department shall
distribute these voluntary guidelines
9for physical activity programs on or before July 1, 2009.
10(c) The department shall contract for an independent statewide
11evaluation of the effectiveness of programs funded pursuant to
12this article to be prepared and submitted to the Legislature. The
13evaluation shall include a comparison of outcomes for participating
14pupils and similarly situated pupils who did not participate in the
15program. A report shall be submitted to the Governor and the
16Legislature on or before October 1, 2011, providing data that
17includes, but is not limited to, all of the following:
18(1) Data collected pursuant to Section 8484.
19(2) Data adopted through the process outlined in subdivision
20(b) of Section 8421.5 and subdivision (g) of Section 8482.4.
21(3) Number and type of sites and grantees participating in the
22program.
23(4) Pupil program attendance, as reported semiannually, and
24pupil schoolday attendance, as reported annually.
25(5) Pupil program participation rates.
26(6) Quality of program drawing on the research of the Academy
27of Sciences on critical features of programs that support healthy
28youth development.
29(7) The participation rates of local educational agencies.
30(8) Local partnerships.
31(9) The academic performance of participating pupils in English
32language arts and mathematics, as measured by the results of the
33Standardized Testing and Reporting
(STAR) Program established
34pursuant to Section 60640.
35(d) A final report shall be submitted to the Governor and the
36Legislature on or before December 1, 2011. The final report shall
37include, but not be limited to, all of the following:
38(1) Updated data on the measures specified in subdivision (b),
39including, but not limited to, changes in those measures.
P79 1(2) The prevalence and frequency of activities included in
2funded programs.
Section 8490.1 of the Education Code is amended to
4read:
For purposes of this article, the following definitions
6shall apply:
7(a) “After school program” meansbegin insert theend insert After School Education
8and Safety Program (ASES),begin insert theend insert 21st Century High School After
9School Safety and Enrichment for Teens (High School ASSETs)
10program, and other qualified out-of-school time programs that
11serve schoolage children outside of regular school hours, including
12before school and on weekends.
13(b) “DASH recognition program” means the Distinguished After
14School Health Recognition Programbegin delete enactedend deletebegin insert
establishedend insert pursuant
15to this article.
16(c) “Program attendee” means a person enrolled in an after
17school program.
18(d) “Screen time” means time spent viewing or working on
19television, videos, computers, and hand-held devices, with or
20without Internet access.
Section 9004 of the Education Code is amended to
22read:
Thebegin delete State Department of Educationend deletebegin insert departmentend insert shall
24select grant recipients from the northern, southern, and central
25regions of the state and from urban, rural, and suburban areas, so
26that the recipients are broadlybegin delete representativesend deletebegin insert representativeend insert of
27the state.
Chapter 17 (commencing with Section 11600) of Part
297 of Division 1 of Title 1 of the Education Code is repealed.
The heading of Article 2 (commencing with Section
3112210) of Chapter 2 of Part 8 of Division 1 of Title 1 of the 32Education Code is repealed.
33
Section 17199.4 of the Education Code is amended
37to read:
(a) Notwithstanding any other law, any participating
39party, in connection with securing financing or refinancing of
40projects, or working capital pursuant to this chapter, may, in
P80 1accordance with this section, elect to provide for funding, in whole
2or in part, one or more of the following:
3(1) Payments on authority bonds.
4(2) Payments under credit enhancement or liquidity support
5agreements in connection with authority bonds.
6(3) Amounts pledged or assigned under one or more pledges or
7assignments to pay authority bonds or obligations under these
8credit enhancement or liquidity support agreements.
9(4) Payments to fund reserves available to pay any of the
10payments described in paragraphs (1), (2), and (3), exclusively
11until paid.
12(5) Fees and charges contemplated by the instruments of the
13authority, trustees, tender agents, remarketing agents, credit
14enhancement and liquidity support providers, and service providers.
15(6) Any other costs necessary or incidental to any financing or
16refinancing conducted under this chapter.
17(b) The payments made pursuant to subdivision (a) may be in
18connection with a financing or refinancing benefiting the
19participating party itself, one or more other participating parties,
20or any combination thereof.
21(c) To participate under this section, the
participating party shall
22do all of the following:
23(1) Elect to participate by an action of its governing board taken
24in compliance with the rules of that board.
25(2) Provide written notice to the Controller, no later than the
26date of the issuance of the bonds or 60 days before the next
27payment, whichever is later, of all of the following:
28(A) Its election to participate.
29(B) A schedule of the payments subject to that election.
30(C) The payee or payees of those payments, or the trustee or
31agent on their behalf to receive those payments.
32(i)
end delete
33begin insert(D)end insert begin insert(i)end insertbegin insert end insert Payment delivery instructions, which may be by wire
34transfer or other method approved by the Controller.
35(ii) If the method of payment delivery is wire transfer, the
36participating party shall complete and submit the appropriate
37authorization form as prescribed by the Controller.
38(d) The participating party may amend, supplement, or restate
39the notice required pursuant to paragraph (2) of subdivision (c)
40for any reason, including, but not necessarily limited to, providing
P81 1
for new or increased payments. The participating party shall certify
2in the notice and in any amendment, supplement, or restatement
3of the notice that each and every payment reflected in the schedule
4is a payment described in subdivision (a) and the amounts
5scheduled do not exceed the actual or reasonably estimated
6payment obligations to be funded pursuant to this section. The
7participating party shall also represent in the notice that it is not
8submitting the notice for the purpose of accelerating a participating
9party’s receipt of its apportionments. Nothing in this section
10prohibits transfer by the recipient of an apportionment under this
11section to the participating party submitting the notice of the excess
12apportionment above the amount needed to fund actual payments
13where the excess resulted from erroneous estimation of scheduled
14payments or otherwise.
15(e) Upon receipt of the notice required by paragraph (2) of
16subdivision (c), the
Controller shall make an apportionment to the
17indicated recipient on the date, or during the period, shown in the
18schedule in accordance with the following:
19(1) If the participating party requests transfers in full as
20scheduled, in the amount of the scheduled transfer or such lesser
21amount as is available from the sources indicated in subdivision
22(f).
23(2) If the participating party does not request transfers in full
24as scheduled, in the amount of the anticipated deficiency for the
25purpose of making the required payment indicated in a written
26request of the participating party to the Controller and in the
27amount of the actual shortfall in payment indicated in a written
28request of the recipient or the participating party to the Controller
29orbegin delete theend deletebegin insert
whateverend insert lesser amountbegin delete thatend delete is available from the sources
30indicated in subdivision (f).
31(3) To the extent funds available for an apportionment are
32insufficient to pay the amount set forth in a schedule in any period,
33the Controller shall, if and as requested in the notice, reschedule
34the payment of all or a portion of the deficiency to a subsequent
35period.
36(4) In making apportionments under this section, the Controller
37may rely conclusively and without liability on any notice or request
38delivered under this section, including anybegin insert notice of requestend insert
39 deliveredbegin delete prior toend deletebegin insert
beforeend insert enactment of the act that adds this
40paragraph. The Controller may make, but is not obligated to make,
P82 1apportionments not reflected on a notice or on an amended,
2supplemented, or restated notice delivered under this section that
3the Controller receives less than 20 daysbegin delete prior toend deletebegin insert beforeend insert when the
4apportionment would otherwise be required.
5(f) The Controller shall make an apportionment under this
6section only from moneys designated for apportionment to the
7participating party delivering the notice, and only from one or both
8of the following:
9(1) Any funding apportioned for purposes of revenue limits or
10the local control funding formula pursuant to
Section 42238.02,
11as implemented by Section 42238.03, to a school district or county
12office of education without regard to the specific funding source
13of the apportionment.
14(2) Any funding apportioned for purposes of the charter school
15block grant or the local control funding formula pursuant to Section
1642238.02, as implemented by Section 42238.03, to a charter school
17without regard to the specific funding source of the apportionment.
18(g) (1) The amount apportioned for a participating party
19pursuant to this section shall be deemed to be an allocation to the
20participating party, and shall be included in the computation of
21allocation, limit, entitlement, or apportionment for the participating
22party.
23(2) The participating party and its creditors do not have a claim
24to funds apportioned or
anticipated to be apportioned by the
25Controller pursuant to this section.
26(h) (1) The authority may require participation under this section
27under the terms of any financing or refinancing under this chapter
28to provide for one or more of the payments described in paragraphs
29(1), (2), (3), and (4) of subdivision (a). The authority may impose
30limits on new participation under this section. The authority may
31require participating parties to apply to the authority for
32participation. If the authority limits participation under this section,
33the authority shall consider each of the following priorities in
34making participation available:
35(A) First priority shall be given to participating parties that apply
36for funding for instructional classroom space under this chapter.
37(B) Second priority shall be
given to participating parties that
38apply for funding of modernization of instructional classroom
39space under this chapter.
P83 1(C) Third priority shall be given to participating parties that
2apply for funding under this chapter for any other eligible costs,
3as defined in Section 17173.
4(2) The authority shall prioritize applications at appropriate
5intervals.
6(3) A school district electing to participate under this section
7that has applied for revenue bond moneys for purposes of joint
8venture school facilities construction projects, pursuant to Article
95 (commencing with Section 17060) of Chapter 12, shall not be
10subject to the priorities set forth in paragraph (1).
11(i) This section shall not be construed to make the State of
12California liable for any
payments within the meaning of Section
131 of Article XVI of the California Constitution.
14(j) A school district that has a qualified or negative certification
15pursuant to Section 42131, or a county office of education that has
16a qualified or negative certification pursuant to Section 1240, may
17not participate under this section.
18(k) This section does not obligate the State of California to make
19available the sources of apportionment under subdivision (f) in
20any amount or at any time or, except as provided in this section,
21to fund any payment described in this section. The addition of this
22subdivision is intended solely to clarify existing law.
Section 17592.74 of the Education Code is amended
24to read:
Notwithstanding any other law, the funds provided
26to school districts from the School Facilities Emergency Repair
27Account pursuant to this article for the purpose of emergency repair
28grants shall not be deposited into a school district deferred
29maintenance fund for purposesbegin delete established pursuant toend deletebegin insert described
30inend insert Section 17582.
The heading of Chapter 11 (commencing with Section
3219900) of Part 11 of Division 1 of Title 1 of the Education Code,
33as enacted by Chapter 1010 of the Statutes of 1976, is amended
34and renumbered to read:
35
The heading of Article 1 (commencing with Section
3932200) of Chapter 2 of Part 19 of Division 1 of Title 1 of the 40Education Code is repealed.
P84 1
Section 32282 of the Education Code is amended to
5read:
(a) The comprehensive school safety plan shall include,
7but not be limited to, both of the following:
8(1) Assessing the current status of school crime committed on
9school campuses and at school-related functions.
10(2) Identifying appropriate strategies and programs that will
11provide or maintain a high level of school safety and address the
12school’s procedures for complying with existing laws related to
13school safety, which shall include the development of all of the
14following:
15(A) Child abuse reporting procedures consistent with Article
162.5 (commencing with Section 11164) of Chapter 2 of Title 1 of
17Part 4 of the Penal Code.
18(B) Disaster procedures, routine and emergency, including
19adaptations for pupils with disabilities in accordance with the
20federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec.
2112101 et seq.). The disaster procedures shall also include, but not
22be limited to, both of the following:
23(i) Establishing an earthquake emergency procedure system in
24every public school building having an occupant capacity of 50
25or more pupils or more than one classroom. A school district or
26county office of education may work with the Office of Emergency
27Services and thebegin insert Alfred E. Alquistend insert Seismic Safety Commission to
28develop and establish the earthquake emergency procedure system.
29The system shall include, but not be limited to, all of the following:
30(I) A school building disaster plan, ready for implementation
31at any time, for maintaining the safety and care of pupils and staff.
32(II) A drop procedure whereby each pupil and staff member
33takes cover under a table or desk, dropping to his or her knees,
34with the head protected by the arms, and the back to the windows.
35A drop procedure practice shall be held at least once each school
36quarter in elementary schools and at least once a semester in
37secondary schools.
38(III) Protective measures to be taken before, during, and
39following an earthquake.
P85 1(IV) A program to ensure that pupils and both the certificated
2and classified staff are aware of, and properly trained in, the
3earthquake emergency procedure system.
4(ii) Establishing a procedure to allow a public agency, including
5the American Red Cross, to use school buildings, grounds, and
6equipment for mass care and welfare shelters during disasters or
7other emergencies affecting the public health and welfare. The
8school district or county office of education shall cooperate with
9the public agency in furnishing and maintaining the services as
10the school district or county office of education may deem
11necessary to meet the needs of the community.
12(C) Policies pursuant to subdivision (d) of Section 48915 for
13pupils who committed an act listed in subdivision (c) of Section
1448915 and other school-designated serious acts which would lead
15to suspension, expulsion, or mandatory expulsion recommendations
16pursuant to Article 1 (commencing with Section 48900) of Chapter
176 of Part 27 of Division 4 of Title 2.
18(D) Procedures to notify
teachers of dangerous pupils pursuant
19to Section 49079.
20(E) A discrimination and harassment policy consistent with the
21prohibition against discrimination contained in Chapter 2
22(commencing with Section 200) of Part 1.
23(F) The provisions of any schoolwide dress code, pursuant to
24Section 35183, that prohibits pupils from wearing “gang-related
25apparel,” if the school has adopted that type of a dress code. For
26those purposes, the comprehensive school safety plan shall define
27“gang-related apparel.” The definition shall be limited to apparel
28that, if worn or displayed on a school campus, reasonably could
29be determined to threaten the health and safety of the school
30environment.begin delete Anyend deletebegin insert Aend insert schoolwide
dress code established pursuant
31to this section and Section 35183 shall be enforced on the school
32campus and at any school-sponsored activity by the principal of
33the school or the person designated by the principal. For purposes
34of this paragraph, “gang-related apparel” shall not be considered
35a protected form of speech pursuant to Section 48950.
36(G) Procedures for safe ingress and egress of pupils, parents,
37and school employees to and from school.
38(H) A safe and orderly environment conducive to learning at
39the school.
P86 1(I) The rules and procedures on school discipline adopted
2pursuant to Sections 35291 and 35291.5.
3(b) It is the intent of the Legislature that schools develop
4comprehensive school safety plans using existing resources,
5including the
materials and services of the partnership, pursuant
6to this chapter. It is also the intent of the Legislature that schools
7use the handbook developed and distributed by the School/Law
8Enforcement Partnership Program entitled “Safe Schools: A
9Planning Guide for Action” in conjunction with developing their
10plan for school safety.
11(c) Each schoolsite council or school safety planningbegin delete committeeend delete
12begin insert committee,end insert in developing and updating a comprehensive school
13safetybegin delete planend deletebegin insert plan,end insert shall, where practical, consult, cooperate, and
14coordinate with other schoolsite councils or school
safety planning
15committees.
16(d) The comprehensive school safety plan may be evaluated
17and amended, as needed, by the school safety planning committee,
18but shall be evaluated at least once a year, to ensure that the
19comprehensive school safety plan is properly implemented. An
20updated file of all safety-related plans and materials shall be readily
21available for inspection by the public.
22(e) As comprehensive school safety plans are reviewed and
23updated, the Legislature encourages all plans, to the extent that
24resources are available, to include policies and procedures aimed
25at the prevention of bullying.
26(f) The comprehensive school safety plan, as written and updated
27by the schoolsite council or school safety planning committee,
28shall be submitted for approvalbegin delete underend deletebegin insert
pursuant toend insert subdivision (a)
29of Section 32288.
Section 32289 of the Education Code, as added by
31Section 1 of Chapter 272 of the Statutes of 2004, is repealed.
A complaint of noncompliance with the school safety
33planning requirements of Title IV of the federal No Child Left
34Behind Act of 2001, 20 U.S.C. Sec. 7114(d)(7), may be filed with
35the department under the Uniform Complaint Procedures as set
36forth in Chapter 5.1 (commencing with Section 4600) of Title 5
37of the California Code of Regulations.
Section 32289 of the Education Code, as added by
39Section 29 of Chapter 896 of the Statutes of 2004, is amended to
40read:
A complaint of noncompliance with the school safety
2planning requirements of Title IV of the federal No Child Left
3Behind Act of 2001 (20 U.S.C. Sec. 7114 (d)(7)) may be filed with
4the department under the Uniform Complaint Procedures as set
5forth in Chapter 5.1 (commencing withbegin delete Sectionsend deletebegin insert Sectionend insert 4600) of
6Title 5 of the California Code of Regulations.
The heading of Article 7 (commencing with Section
833390) of Chapter 3 of Part 20 of Division 2 of Title 2 of the 9Education Code is repealed.
10
Section 35035 of the Education Code is amended to
14read:
The superintendent of each school district shall, in
16addition to other powers and duties granted to or imposed upon
17him or her:
18(a) Be the chief executive officer of the governing board of the
19school district.
20(b) Except in a school district where the governing board has
21appointed or designated an employee other than the superintendent,
22or a deputy, or assistant superintendent, to prepare and submit a
23budget, prepare and submit to the governing board of the school
24district, at the time it may direct, the budget of the school district
25for the next ensuing school year, and revise and take other action
26in connection with the budget as the governing board of the school
27district may desire.
28(c) Be responsible for the preparation and submission to the
29governing board of the school district, at the time the governing
30board may direct, the local control and accountability plan of the
31school district for the subsequent school year, and revise and take
32other action in connection with the local control and accountability
33plan as the governing board of the school district may desire.
34(d) Except in a school district where the governing board has
35appointed or designated an employee other than the superintendent,
36or a deputy, or assistant superintendent, ensure that the local control
37and accountability plan is implemented.
38(e) Subject to the approval of the governing board of the school
39district, assign all employees ofbegin delete schoolend delete thebegin insert
schoolend insert district employed
40in positions requiring certificationbegin delete qualifications,end deletebegin insert qualificationsend insert to
P88 1the positions in which they are to serve. This power to assign
2includes the power to transfer a teacher from one school to another
3school at which the teacher is certificated to serve within the school
4district when the superintendent concludes that the transfer is in
5the best interest of the school district.
6(f) Uponbegin delete adoption,end deletebegin insert adoptionend insert by the school districtbegin delete board,end deletebegin insert
boardend insert
7 of a school district policy concerning transfers of teachers from
8one school to another school within the school district, have
9authority to transfer teachers consistent with that policy.
10(g) Determine that each employee of the school district in a
11position requiring certification qualifications has a valid certificated
12document registered as required by law authorizing him or her to
13serve in the position to which he or she is assigned.
14(h) Enter into contracts for and on behalf of the school district
15pursuant to Section 17604.
16(i) Submit financial and budgetary reports to the governing
17board of the school district as required by Section 42130.
Section 35735.1 of the Education Code is amended
19to read:
(a) The local control funding formula allocation per
21unit of average daily attendance for newly organized school
22districts shall be equal to the total of the amount of the local control
23funding formula allocation pursuant to Section 42238.02, as
24implemented by Section 42238.03, per unit of average daily
25attendance of the affected school districts computed pursuant to
26the computations set forth below. The following computations
27shall be made to determine the local control funding formula
28allocation pursuant to Section 42238.02, as implemented by Section
2942238.03, per unit of average daily attendance forbegin delete theend delete newly
30organized school districts:
31(1) Based on the current information
available for each affected
32school district for the second principal apportionment period for
33the fiscal year before the fiscal year in which the reorganization
34is to become effective, multiply the local control funding formula
35allocation pursuant to Section 42238.02, as implemented by Section
3642238.03, per unit of average daily attendance for that school
37district by the number of units of average daily attendance for that
38school district that the county superintendent of schools determines
39will be included in the proposed school district.
P89 1(2) Add the amounts calculated pursuant to paragraph (1) and
2divide that sum by the number of units of average daily attendance
3in the newly organized school districts.
4(b) The amount determined pursuant to subdivision (a) shall be
5the local control funding formula allocation pursuant to Section
642238.02, as implemented by Section 42238.03, per
unit of average
7daily attendance forbegin delete theend delete newly organized school districts.
8(c) The average daily attendance of a newly organized school
9district, for purposes of Sections 42238.02 and 42238.03, shall be
10the average daily attendance that is attributable to the area
11reorganized for the fiscal year before the fiscal year in which the
12new school district becomes effective for all purposes.
13(d) Notwithstanding this section, commencing with the 2013-14
14fiscal year, a newly reorganized school district shall receive
15state-aid funding pursuant to paragraph (3) of subdivision (b) of
16Section 42238.03 or the total combined per pupil funding amount
17received by each school district pursuant to paragraphs (1) and (2)
18of subdivision (a) of Section 42238.03 for the fiscal year before
19the fiscal year in which the
new school district becomes effective
20for all purposes, whichever is greater.
21(e) Notwithstanding any other law, this section shall not be
22subject to waiver by the state board pursuant to Section 33050 or
23by the Superintendent.
24(f) Upon a determination that all school districts or charter
25schools equal or exceed the local control funding formula target
26computed pursuant to Section 42238.02 as determined by the
27calculation of a zero difference pursuant to paragraph (1) of
28subdivision (b) of Section 42238.03, for all school districts and
29charter schools, this section shall not apply andbegin delete theend delete newly
30reorganized schoolbegin delete districtend deletebegin insert districtsend insert
shall receive an allocation
31equal to the amount calculated under Section 42238.02 in that
32fiscal year and future fiscal years.
The heading of Chapter 3 (commencing with Section
3437400) of Part 22 of Division 3 of Title 2 of the Education Code
35 is repealed.
36
Section 38047.5 of the Education Code is amended
40and renumbered to read:
Thebegin delete State Board of Educationend deletebegin insert state boardend insert shall adopt
3regulations to require a passenger in a schoolbus equipped with
4passenger restraint systems in accordance with Section 27316 of
5the Vehicle Code to use a passenger restraint system so that the
6passenger is properly restrained by that system.
Section 38047.6 of the Education Code is amended
8and renumbered to read:
Thebegin delete State Board of Educationend deletebegin insert state boardend insert shall adopt
11regulations to require a passenger in a school pupil activity bus
12equipped with passenger restraint systems in accordance with
13Section 27316.5 of the Vehicle Code to use a passenger restraint
14system so that the passenger is properly restrained by that system.
Section 39672 of the Education Code is amended
16and renumbered to read:
begin insert(a)end insertbegin insert end insert Every school peace officer first employed by a
19K-12 public school district before July 1, 1999, shall, in order to
20retain his or her employment, fulfill both of the following
21conditions:
22(a)
end delete
23begin insert(1)end insert The employee shall submit to thebegin insert schoolend insert district one copy
24of his or her fingerprints on forms prescribed by the Department
25of Justice. The Department of Justice shall forward this copy to
26the United States Federal Bureau of Investigation.
27(b)
end delete
28begin insert(2)end insert The employee shall be determined to be a person who is not
29prohibited from employment by a school district pursuant to
30Sections 44237 and 45122.1, and, if
the employee is required to
31carry a firearm, shall be determined by the Department of Justice
32to be a person who is not prohibited from possessing a firearm.
33The
end delete
34begin insert(b)end insertbegin insert end insertbegin insertTheend insert Department of Justice may participate in the National
35Instant Criminal Background Check System (NICS) in lieu of
36submitting fingerprints to the United States Federal Bureau of
37Investigation in order to meet the requirements of this section
38relating to firearms.
Section 41020 of the Education Code is amended to
40read:
(a) It is the intent of the Legislature to encourage sound
2fiscal management practices among local educational agencies for
3the most efficient and effective use of public funds for the
4education of children in California by strengthening fiscal
5accountability at the school district, county, and state levels.
6(b) (1) Not later than the first day of May of each fiscal year,
7each county superintendent of schools shall provide for an audit
8of all funds under his or her jurisdiction and control and the
9governing board of each local educational agency shall either
10provide for an audit of the books and accounts of the local
11educational agency, including an audit of income and expenditures
12by source of funds, or make arrangements with the county
13
superintendent of schools having jurisdiction over the local
14educational agency to provide for that auditing.
15(2) A contract to perform the audit of a local educational agency
16that has a disapproved budget or has received a negative
17certification on any budget or interim financial report during the
18current fiscal year or either of the two preceding fiscal years, or
19for which the county superintendent of schools has otherwise
20determined that a lack of going concern exists, is not valid unless
21approved by the responsible county superintendent of schools and
22the governing board.
23(3) If the governing board of a local educational agency has not
24provided for an audit of the books and accounts of the local
25educational agency by April 1, the county superintendent of schools
26having jurisdiction over the local educational agency shall provide
27for the audit of each local educational
agency.
28(4) An audit conducted pursuant to this section shall comply
29fully with the Government Auditing Standards issued by the
30Comptroller General of the United States.
31(5) For purposes of this section, “local educational agency” does
32not include community colleges.
33(c) Each audit conducted in accordance with this section shall
34include all funds of the local educational agency, including the
35student body and cafeteria funds and accounts and any other funds
36under the control or jurisdiction of the local educational agency.
37Each audit shall also include an audit of pupil attendance
38procedures. Each audit shall include a determination of whether
39funds were expended pursuant to a local control and accountability
40plan or an approved annual update to a local control and
P92 1accountability plan pursuant to Article 4.5
(commencing with
2Section 52060) of Chapter 6.1 of Part 28 of Division 4.
3(d) All audit reports for each fiscal year shall be developed and
4reported using a format established by the Controller after
5consultation with the Superintendent and the Director of Finance.
6(e) (1) The cost of the audits provided for by the county
7superintendent of schools shall be paid from the county school
8service fund and the county superintendent of schools shall transfer
9the pro rata share of the cost chargeable to each school district
10from school district funds.
11(2) The cost of the audit provided for by a governing board of
12a local educational agency shall be paid from local educational
13agency funds. The audit of the funds under the jurisdiction and
14control of the county superintendent of schools shall be paid from
15
the county school service fund.
16(f) (1) The audits shall be made by a certified public accountant
17or a public accountant, licensed by the California Board of
18Accountancy, and selected by the local educational agency, as
19applicable, from a directory of certified public accountants and
20public accountants deemed by the Controller as qualified to conduct
21audits of local educational agencies, which shall be published by
22the Controller not later than December 31 of each year.
23(2) Commencing with the 2003-04 fiscal year and except as
24provided in subdivision (d) of Section 41320.1, it is unlawful for
25a public accounting firm to provide audit services to a local
26educational agency if the lead audit partner, or coordinating audit
27partner, having primary responsibility for the audit, or the audit
28partner responsible for reviewing the audit, has performed audit
29services
for that local educational agency in each of the six previous
30fiscal years. The Education Audits Appeal Panel may waive this
31requirement if the panel finds that no otherwise eligible auditor is
32available to perform the audit.
33(3) It is the intent of the Legislature that, notwithstanding
34paragraph (2), the rotation within public accounting firms conform
35to provisions of the federal Sarbanes-Oxley Act of 2002 (Public
36Law 107-204; 15 U.S.C. Sec. 7201 et seq.), and upon release of
37the report required by the act of the Comptroller General of the
38United States addressing the mandatory rotation of registered
39public accounting firms, the Legislature intends to reconsider the
40provisions of paragraph (2). In determining which certified public
P93 1accountants and public accountants shall be included in the
2directory, the Controller shall use the following criteria:
3(A) The certified public
accountants or public accountants shall
4be in good standing as certified by the Board of Accountancy.
5(B) The certified public accountants or public accountants, as
6a result of a quality control review conducted by the Controller
7pursuant to Section 14504.2, shall not have been found to have
8conducted an audit in a manner constituting noncompliance with
9subdivision (a) of Section 14503.
10(g) (1) The auditor’s report shall include each of the following:
11(A) A statement that the audit was conducted pursuant to
12standards and procedures developed in accordance with Chapter
133 (commencing with Section 14500) of Part 9 of Division 1 of
14Title 1.
15(B) A summary of audit exceptions and management
16improvement recommendations.
17(C) Each audit of a local educational agency shall include an
18evaluation by the auditor on whether there is substantial doubt
19about the ability of the local educational agency to continue as a
20going concern for a reasonable period of time. This evaluation
21shall be based on the Statement on Auditing Standards (SAS) No.
2259, as issued by the AICPA regarding disclosure requirements
23relating to the ability of the entity to continue as a going concern.
24(2) To the extent possible, a description of correction or plan
25of correction shall be incorporated in the audit report, describing
26the specific actions that are planned to be taken, or that have been
27taken, to correct the problem identified by the auditor. The
28descriptions of specific actions to be taken or that have been taken
29shall not solely consist of general comments such as “will
30implement,” “accepted the recommendation,” or “will
discuss at
31a later date.”
32(h) Not later than December 15, a report of each local
33educational agency audit for the preceding fiscal year shall be filed
34with the county superintendent of schools of the county in which
35the local educational agency is located, the department, and the
36Controller. The Superintendent shall make any adjustments
37necessary in future apportionments of all state funds, to correct
38any audit exceptions revealed by those audit reports.
39(i) (1) Commencing with the 2002-03 audit of local educational
40agencies pursuant to this section and subdivision (d) of Section
P94 141320.1, each county superintendent of schools shall be responsible
2for reviewing the audit exceptions contained in an audit of a local
3educational agency under his or her jurisdiction related to
4attendance, inventory of equipment, internal control, and any
5miscellaneous items, and
determining whether the exceptions have
6been either corrected or an acceptable plan of correction has been
7developed.
8(2) Commencing with the 2004-05 audit of local educational
9agencies pursuant to this section and subdivision (d) of Section
1041320.1, each county superintendent of schools shall include in
11the review of audit exceptions performed pursuant to this
12subdivision those audit exceptions related to use of instructional
13materials program funds, teacher misassignments pursuant to
14Section 44258.9, information reported on the school accountability
15report card required pursuant to Section 33126 and shall determine
16whether the exceptions are either corrected or an acceptable plan
17of correction has been developed.
18(j) Upon submission of the final audit report to the governing
19board of each local educational agency and subsequent receipt of
20the audit by the county superintendent
of schools having
21jurisdiction over the local educational agency, the county office
22of education shall do all of the following:
23(1) Review audit exceptions related to attendance, inventory of
24equipment, internal control, and other miscellaneous exceptions.
25Attendance exceptions or issues shall include, but not be limited
26to, those related to local control funding formula allocations
27pursuant to Section 42238.02, as implemented by Section 42238.03,
28and independent study.
29(2) If a description of the correction or plan of correction has
30not been provided as part of the audit required by this section,begin delete thenend delete
31 the county superintendent of schools shall notify the local
32educational agency and request the governing board of the local
33educational agency to provide to the county superintendent of
34schools a
description of the corrections or plan of correction by
35March 15.
36(3) Review the description of correction or plan of correction
37and determine its adequacy. If the description of the correction or
38plan of correction is not adequate, the county superintendent of
39schools shall require the local educational agency to resubmit that
40portion of its response that is inadequate.
P95 1(k) Each county superintendent of schools shall certify to the
2Superintendent and the Controller, not later than May 15, that his
3or her staff has reviewed all audits of local educational agencies
4under his or her jurisdiction for the prior fiscal year, that all
5exceptions that the county superintendent was required to review
6were reviewed, and that all of those exceptions, except as otherwise
7noted in the certification, have been corrected by the local
8educational agency or that an acceptable plan of correction
has
9been submitted to the county superintendent of schools. In addition,
10the county superintendent shall identify, by local educational
11agency, any attendance-related audit exception or exceptions
12involving state funds, and require the local educational agency to
13which the audit exceptions were directed to submit appropriate
14reporting forms for processing by the Superintendent.
15(l) In the audit of a local educational agency for a subsequent
16year, the auditor shall review the correction or plan or plans of
17correction submitted by the local educational agency to determine
18if the exceptions have been resolved. If not, the auditor shall
19immediately notify the appropriate county office of education and
20the department and restate the exception in the audit report. After
21receiving that notification, the department shall either consult with
22the local educational agency to resolve the exception or require
23the county superintendent of schools to
follow up with the local
24educational agency.
25(m) (1) The Superintendentbegin delete shall beend deletebegin insert isend insert responsible for ensuring
26that local educational agencies have either corrected or developed
27plans of correction for any one or more of the following:
28(A) All federal and state compliance audit exceptions identified
29in the audit.
30(B) begin deleteAny exceptions end deletebegin insertExceptions end insertthat the county superintendent
31begin insert
of schoolsend insert certifies as of May 15 have not been corrected.
32(C) begin deleteAny repeat end deletebegin insertRepeat end insertaudit exceptions that are not assigned to
33a county superintendentbegin insert of schoolsend insert to correct.
34(2) In addition, the Superintendentbegin delete shall beend deletebegin insert isend insert responsible for
35ensuring that county superintendents of schools and each county
36board of education that serves as the governing board of a local
37
educational agency either correct all audit exceptions identified in
38the audits of county superintendents of schools and of the local
39educational agencies for which the county boards of education
P96 1serve as the governing boards or develop acceptable plans of
2correction for those exceptions.
3(3) The Superintendent shall report annually to the Controller
4on his or her actions to ensure that school districts, county
5superintendents of schools, and each county board of education
6that serves as the governing board of a school district have either
7corrected or developed plans of correction for any of the exceptions
8noted pursuant to paragraph (1).
9(n) To facilitate correction of the exceptions identified by the
10audits issued pursuant to this section,begin delete commencing with 2002-03
the Controller shall require auditors
11audits pursuant to this section,end delete
12to categorize audit exceptions in each audit report in a manner that
13will make it clear to both the county superintendent of schools and
14the Superintendent which exceptions they are responsible for
15ensuring the correction of by a local educational agency. In
16addition, the Controller annually shall select a sampling of county
17superintendents of schools and perform a followup of the audit
18resolution process of those county superintendents of schools and
19report the results of that followup to the Superintendent and the
20county superintendents of schools that were reviewed.
21(o) County superintendents of schools shall adjust subsequent
22local property tax requirements to correct audit exceptions relating
23to local educational agency tax rates and tax revenues.
24(p) If a governing board or county superintendent of schools
25fails or is
unable to make satisfactory arrangements for the audit
26pursuant to this section, the Controller shall make arrangements
27for the audit and the cost of the audit shall be paid from local
28educational agency funds or the county school service fund, as the
29case may be.
30(q) Audits of regional occupational centers and programs are
31subject tobegin delete the provisions ofend delete this section.
32(r) This section does not authorize examination of, or reports
33on, the curriculum used or provided for in any local educational
34agency.
35(s) Notwithstanding any otherbegin delete provision ofend delete
law, a nonauditing,
36management, or other consulting service to be provided to a local
37educational agency by a certified public accounting firm while the
38certified public accounting firm is performing an audit of the
39agency pursuant to this section must be in accord with Government
P97 1Accounting Standards, Amendment No. 3, as published by the
2United States General Accounting Office.
Section 41207.3 of the Education Code, as added by
4Section 11 of Chapter 12 of the Third Extraordinary Session of
5the Statutes of 2009, is amended and renumbered to read:
(a) If the Superintendent and the Director of Finance
8jointly determine that, for the 2008-09 fiscal year, the state has
9applied moneys for the support of school districts and community
10college districts in an amount that exceeds the minimum amount
11required for that fiscal year pursuant to Section 8 of Article XVI
12of the California Constitution, the excess, up to one billion one
13hundred million five hundred ninety thousand dollars
14($1,100,590,000), shall be deemed, as of June 30 of that fiscal
15year, a payment in satisfaction of the outstanding balance of the
16minimum funding obligation under
that section for the 2002-03
17and 2003-04 fiscal years in accordance with the following:
18(1) The first four hundred eighty-three million sixteen thousand
19dollars ($483,016,000) in payment of the outstanding balance of
20the minimum funding obligation for the 2002-03 fiscal year.
21(2) The next six hundred seventeen million five hundred
22seventy-four thousand dollars ($617,574,000) in payment of the
23outstanding balance of the minimum funding obligation for the
242003-04 fiscal year.
25(b) For purposes of this section, the outstanding balance of the
26minimum funding obligation to school districts and community
27college districts pursuant to Section 8 of Article XVI of the
28California Constitution for a fiscal year is the amount, if any, by
29which the amount required to be applied by the state for the support
30of school districts and
community college districts pursuant to
31Section 8 of Article XVI of the California Constitution, including
32any maintenance factor that should have been allocated in that
33fiscal year pursuant to subdivision (e) of Section 8 of Articlebegin delete XVI,end delete
34begin insert XVI of the California Constitution,end insert exceeds the amount applied
35by the state for the support of school districts and community
36college districts for that fiscal year.
37(c) The amounts allocated pursuant to this section shall be
38deemed, for purposes of Section 8 of Article XVI of the California
39Constitution, to be appropriations made and allocated in the fiscal
40year in which the deficiencies resulting in the outstanding balance
P98 1were incurred. When the amount determined to be owed for each
2such fiscal year is fully allocated
pursuant to this subdivision, the
3data used in the computations made under this section with regard
4to the total amount owed by the state for the support of school
5districts and community college districts pursuant to Section 8 of
6Article XVI of the California Constitution for that fiscal year,
7including as much of the maintenance factor for that fiscal year
8determined pursuant to subdivision (d) of Section 8 of Article XVI
9begin insert of the California Constitutionend insert as has been allocated as required by
10subdivision (e) of Section 8 of Article XVIbegin insert of the California
11Constitutionend insert by virtue of the allocations made under this section,
12shall be deemed certified for purposes of Section 41206.
13(d) The amount described in subdivision (a) shall be deemed
a
14payment in full satisfaction of the amounts owed pursuant to
15Section 41207.
Section 41851.1 of the Education Code, as added by
17Section 11 of Chapter 82 of the Statutes of 1989, is repealed.
(a) For the 1989-90 fiscal year, from Section A of
19the State School Fund, the Superintendent of Public Instruction
20shall apportion to each school district or county superintendent of
21schools, as appropriate, an amount computed pursuant to this
22section. School districts and county superintendents of schools
23that provide transportation services by means of a joint powers
24agreement, a cooperative pupil transportation program, or a
25consortium shall receive transportation allowances pursuant to this
26section.
27(b) For the 1989-90 fiscal year, each school district, joint powers
28agency, cooperative pupil transportation program, or consortium
29shall receive a transportation apportionment equal to the greater
30of the following:
31(1) Sixty-five percent of the prior year’s approved transportation
32costs.
33(2) The prior year’s transportation allowance.
34(c) For the 1989-90 fiscal year, each county office of education
35shall receive a transportation apportionment equal to the greater
36of the following:
37(1) Eighty percent of the prior year’s approved transportation
38costs.
39(2) The prior year’s transportation allowance.
P99 1(d) In the event that funds appropriated for the purposes of this
2section are not sufficient to fully fund the formula established by
3that section, the amounts apportioned shall be reduced on a
4proportionate basis.
Section 42127 of the Education Code is amended to
6read:
(a) On or before July 1 of each year, the governing
8board of each school district shall accomplish the following:
9(1) Hold a public hearing conducted in accordance with Section
1042103 on the budget to be adopted for the subsequent fiscal year.
11The budget to be adopted shall be prepared in accordance with
12Section 42126. The agenda for that hearing shall be posted at least
1372 hours before the public hearing and shall include the location
14where the budget will be available for public inspection.
15(2) (A) Adopt a budget. Not later than five days after that
16adoption or by July 1, whichever occurs first, the governing board
17of the school district shall file that budget with the county
18
superintendent of schools. The budget and supporting data shall
19be maintained and made available for public review. If the
20governing board of the school district does not want all or a portion
21of the property tax requirement levied for the purpose of making
22payments for the interest and redemption charges on indebtedness
23as described in paragraph (1) or (2) of subdivision (b) of Section
241 of Article XIII A of the California Constitution, the budget shall
25include a statement of the amount or portion for which a levy shall
26not be made. For the 2014-15 fiscal year and each fiscal year
27thereafter, the governing board of the school district shall not adopt
28a budget before the governing board of the school district adopts
29a local control and accountability plan, if an existing local control
30and accountability plan or annual update to a local control and
31accountability plan is not effective for the budget year. The
32governing board of a school district shall not adopt a budget that
33does not
include the expenditures necessary to implement the local
34control and accountability plan or the annual update to a local
35control and accountability plan that is effective for the budget year.
36(B) Commencing withbegin delete budgetsend deletebegin insert the budgetend insert adopted for the
372015-16 fiscal year, the governing board of a school district that
38proposes to adopt a budget, or revise a budget pursuant to
39subdivision (e), that includes a combined assigned and unassigned
40ending fund balance in excess of the minimum recommended
P100 1reserve for economic uncertainties adopted by the state board
2pursuant to subdivision (a) of Section 33128, shall, at the public
3hearing held pursuant to paragraph (1), provide all of the following
4for public review and discussion:
5(i) The minimum recommended reserve for economic
6uncertainties for each fiscal year identified in the budget.
7(ii) The combined assigned and unassigned ending fund balances
8that are in excess of the minimum recommended reserve for
9economic uncertainties for each fiscal year identified in the budget.
10(iii) A statement of reasons that substantiates the need for an
11assigned and unassigned ending fund balance that is in excess of
12the minimum recommended reserve for economic uncertainties
13for each fiscal year that the school district identifies an assigned
14and unassigned ending fund balance that is in excess of the
15minimum recommended reserve for economic uncertainties, as
16identified pursuant to clause (ii).
17(C) The governing board of a school district shall
include the
18information required pursuant to subparagraph (B) in its budgetary
19submission each time it files an adopted or revised budget with
20the county superintendent of schools. The information required
21pursuant to subparagraph (B) shall be maintained and made
22available for public review.
23(b) The county superintendent of schools may accept changes
24in any statement included in the budget, pursuant to subdivision
25(a), of the amount or portion for which a property tax levy shall
26not be made. The county superintendent of schools or the county
27auditor shall compute the actual amounts to be levied on the
28property tax rolls of the school district for purposes that exceed
29apportionments to the school district pursuant to Chapter 6
30(commencing with Section 95) of Part 0.5 of Division 1 of the
31Revenue and Taxation Code.begin delete Eachend deletebegin insert
Theend insert school district shall provide
32all data needed by the county superintendent of schools or the
33county auditor to compute the amounts. On or before August 15,
34the county superintendent of schools shall transmit the amounts
35computed to the county auditor who shall compute the tax rates
36necessary to produce the amounts. On or before September 1, the
37county auditor shall submit the rate computed to thebegin insert countyend insert board
38of supervisors for adoption.
39(c) The county superintendent of schools shall do all of the
40following:
P101 1(1) Examine the adopted budget to determine whether it
2complies with the standards and criteria adopted by the state board
3pursuant to Section 33127 for application to final local educational
4agency budgets. The county
superintendent of schools shall
5identify, if necessary, technical corrections that are required to be
6made to bring the budget into compliance with those standards
7and criteria.
8(2) Determine whether the adopted budget will allow the school
9district to meet its financial obligations during the fiscal year and
10is consistent with a financial plan that will enable the school district
11to satisfy its multiyear financial commitments. In addition to his
12or her own analysis of the budget ofbegin delete eachend deletebegin insert theend insert school district, the
13county superintendent of schools shall review and consider studies,
14reports, evaluations, or audits of the school district that were
15commissioned by the school district, the county superintendent of
16schools, the Superintendent, and state control
agencies and that
17contain evidence that the school district is showing fiscal distress
18under the standards and criteria adopted in Sectionbegin delete 33127end deletebegin insert 33127,end insert
19 or that contain a finding by an external reviewer that more than 3
20of the 15 most common predictors of a school district needing
21intervention, as determined by the County Office Fiscal Crisis and
22Management Assistance Team, are present. The county
23superintendent of schools shall either conditionally approve or
24disapprove a budget that does not provide adequate assurance that
25the school district will meet its current and future obligations and
26resolve any problems identified in studies, reports, evaluations, or
27audits described in this paragraph.
28(3) Determine whether the adopted budget includes the
29
expenditures necessary to implement the local control and
30accountability plan or annual update to the local control and
31accountability plan approved by the county superintendent of
32schools.
33(4) Determine whether the adopted budget includes a combined
34assigned and unassigned ending fund balance that exceeds the
35minimum recommended reserve for economic uncertainties. If the
36adopted budget includes a combined assigned and unassigned
37ending fund balance that exceeds the minimum recommended
38reserve for economic uncertainties, the county superintendent of
39schools shall verify that the school district complied with the
P102 1requirements of subparagraphs (B) and (C) of paragraph (2) of
2subdivision (a).
3(d) (1) On or before August 15, the county superintendent of
4schools shall approve, conditionally approve, or disapprove the
5adopted budget for each school district. For
the 2014-15 fiscal
6year and each fiscal year thereafter, the county superintendent of
7schools shall disapprove a budget if the county superintendent of
8schools determines that the budget does not include the
9expenditures necessary to implement a local control and
10accountability plan or an annual update to the local control and
11accountability plan approved by the county superintendent of
12schools. If the governing board of a school district does not submit
13a budget to the county superintendent of schools, the county
14superintendent of schools shall develop, at school district expense,
15a budget for that school district by September 15 and transmit that
16budget to the governing board of the school district. The budget
17prepared by the county superintendent of schools shall be deemed
18adopted, unless the county superintendent of schools approves any
19modifications made by the governing board of the school district.
20The budget prepared by the county superintendent of schools shall
21also comply with the requirements of
subparagraph (B) of
22paragraph (2) of subdivision (a). The approved budget shall be
23used as a guide for the school district’s priorities. The
24Superintendent shall review and certify the budget approved by
25thebegin delete county.end deletebegin insert county superintendent of schools.end insert If, pursuant to the
26review conducted pursuant to subdivision (c), the county
27superintendent of schools determines that the adopted budget for
28a school district does not satisfy paragraph (1), (2), (3), or (4) of
29that subdivision, he or she shall conditionally approve or
30disapprove the budget and, not later than August 15, transmit to
31the governing board of the school district, in writing, his or her
32recommendations regarding revision of the budget and the reasons
33for those recommendations, including, but not limited to, the
34amounts of any budget adjustments needed before he
or she can
35approve that budget. The county superintendent of schools may
36assign a fiscal adviser to assist the school district to develop a
37budget in compliance with those revisions. In addition, the county
38superintendent of schools may appoint a committee to examine
39and comment on the superintendent’s review and recommendations,
P103 1subject to the requirement that the committee report its findings
2to the county superintendent of schools no later than August 20.
3(2) Notwithstanding any other provision of this article, for the
42014-15 fiscal year and each fiscal year thereafter, the budget
5shall not be adopted or approved by the county superintendent of
6schools before a local control and accountability plan or update to
7an existing local control and accountability plan for the budget
8year is approved.
9(3) If the adopted budget of a school district is conditionally
10approved or
disapproved pursuant to paragraph (1), on or before
11September 8, the governing board of the school district, in
12conjunction with the county superintendent of schools, shall review
13and respond to the recommendations of the county superintendent
14of schools at a regular meeting of the governing board of the school
15district. The response shall include any revisions to the adopted
16budget and other proposed actions to be taken, if any, as a result
17of those recommendations.
18(e) On or before September 22, the county superintendent of
19schools shall provide a list to the Superintendent identifying all
20school districts for which budgets may be disapproved.
21(f) (1) The county superintendent of schools shall examine the
22revised budget as provided in paragraph (3) of subdivision (d) to
23determine whether it (A) complies with the standards and criteria
24adopted by the state
board pursuant to Section 33127 for
25application to final local educational agency budgets, (B) allows
26the school district to meet its financial obligations during the fiscal
27year, (C) satisfies all conditions established by the county
28superintendent of schools in the case of a conditionally approved
29budget, (D) is consistent with a financial plan that will enable the
30school district to satisfy its multiyear financial commitments,begin insert and
31(E) complies with the requirements of subparagraph (B) of
32paragraph (2) of subdivision (a),end insert and, not later than October 8,
33shall approve or disapprove the revisedbegin delete budget, and (E) whether begin insert budget.end insert
If the county
34the revised budget complies with the requirements of subparagraph
35(B) of paragraph (2) of subdivision (a).end delete
36superintendent of schools disapproves the budget, he or she shall
37call for the formation of a budget review committee pursuant to
38Section 42127.1, unless the governing board of the school district
39and the county superintendent of schools agree to waive the
40requirement that a budget review committee be formed and the
P104 1department approves the waiver after determining that a budget
2review committee is not necessary. Upon the grant of a waiver,
3the county superintendent of schools immediately has the authority
4and responsibility provided in Section 42127.3. Upon approving
5a waiver of the budget review committee, the department shall
6ensure that a balanced budget is adopted for the school district by
7November 30. Ifbegin delete noend deletebegin insert aend insert budget isbegin insert
notend insert adopted by November 30, the
8Superintendent may adopt a budget for the school district. The
9Superintendent shall report to the Legislature and the Director of
10Finance by December 10 if any school district, including a school
11district that has received a waiver of the budget review committee
12process, does not have an adopted budget by November 30. This
13report shall include the reasons why a budget has not been adopted
14by the deadline, the steps being taken to finalize budget adoption,
15the date the adopted budget is anticipated, and whether the
16Superintendent has or will exercise his or her authority to adopt a
17budget for the school district.
18(2) Notwithstanding any other law, for the 2014-15 fiscal year
19and each fiscal year thereafter, if the county superintendent of
20schools disapproves the budget for the sole reason that the county
21superintendent of schools has not approved a local control and
22
accountability plan or an annual update to the local control and
23accountability plan filed by the governing board of the school
24district pursuant to Section 52070, the county superintendent of
25schools shall not call for the formation of a budget review
26committee pursuant to Section 42127.1.
27(g) Not later than October 8, the county superintendent of
28schools shall submit a report to the Superintendent identifying all
29school districts for which budgets have been disapproved or budget
30review committees waived. The report shall include a copy of the
31written response transmitted to each of those school districts
32pursuant to paragraph (1) of subdivision (d).
33(h) Not later than 45 days after the Governor signs the annual
34Budget Act, the school district shall make available for public
35review any revisions in revenues and expenditures that it has made
36to its budget to reflect the funding
made available by that Budget
37Act.
38(i) begin deleteAny end deletebegin insertA end insertschool district for which the county board of education
39serves as the governing board of the school district is not subject
P105 1to subdivisions (c) to (h), inclusive, but is governed instead by the
2budget procedures set forth in Section 1622.
Section 42238.15 of the Education Code is amended
4to read:
(a) Notwithstanding any other law, and in lieu of
6any inflation or cost-of-living adjustment otherwise authorized for
7begin delete any ofend delete the programs enumerated in subdivision (b), state funding
8for the programs enumerated in subdivision (b) shall be increased
9annually by the product of the following:
10(1) The sum of 1.0 plus the percentage change determined under
11paragraph (2) of subdivision (d) of Section 42238.02.
12(2) The sum of 1.0 plus the percentage of increase, from the
13prior fiscal year to the current fiscal year, in each of the workload
14factors described in subdivision (b).
15(b) The programs for which annual state funding increases are
16determined under this section, and the factors used to measure
17workload for each of those programs, are as follows:
18(1) Special education programs and services,begin delete asend deletebegin insert with workloadend insert
19 measured by the regular second principal apportionment average
20daily attendance for kindergarten and grades 1 to 12, inclusive.
21(2) Child care and development programs, and preschool
22programs,begin delete asend deletebegin insert with workloadend insert
measured by the state population of
23children up to and including four years of age.
24(c) Notwithstanding any other law, child care and development
25programs shall not receive a cost-of-living adjustment in the
262012-13, 2013-14, and 2014-15 fiscal years.
Section 42800 of the Education Code is amended to
28read:
(a) The governing board of a school district may, with
30the consent of the county superintendent of schools, establish a
31revolving cash fund for the use of the chief accounting officer of
32the school district, by adopting a resolution setting forth the
33necessity for the revolving cash fund, the officer for whom and
34the purposes for which the revolving cash fund shall be available,
35and the amount of the fund. The purposes for which the revolving
36cash fund shall be available shall include the purposes specified
37in Section 45167. Three certified copies of the resolution shall be
38transmitted to the county superintendent of schools. If hebegin insert or sheend insert
39 approves the establishment of the fund, the county superintendent
40begin insert
of schoolsend insert shall endorse hisbegin insert or herend insert consent on the resolution and
P106 1return one copy to the governingbegin delete bodyend deletebegin insert boardend insert of the school district,
2and transmit one copy to the county auditor.
3(b) The maximum amount allowed for revolving cash funds
4established pursuant to subdivision (a) shall be the lesser of:
5(1) Two percent of thebegin insert schoolend insert district’s estimated expenditures
6for the current fiscal year, or
7(2) A dollar amount limit of seventy-five thousand dollars
8($75,000) for any elementary school or high school district and
9one hundred fifty thousand dollars ($150,000) for any unified
10school district for fiscal year 1990-91. The dollar amount limit
11for each school district shall, through the 2012-13 fiscal year, be
12increased annually by the percentage increase in thebegin insert schoolend insert
13 district’s revenue limit established by Section 42238, as that section
14read on January 1, 2013. The dollar amount limit for each school
15district shall thereafter be increased annually by the percentage
16increase in the school district’s local control funding formula
17allocation established pursuant to Section 42238.02, as
18implemented pursuant to Section 42238.03.
Section 44252 of the Education Code is amended to
20read:
(a) (1) The commission shall establish standards and
22 procedures for the initial issuance and renewal of credentials.
23(2) (A) The commission shall require an initial or renewal
24applicant who submits an initial or renewal applicationbegin insert forend insert his or
25her credential online, as part of the application process, to read
26and attest by electronic signature a statement that the applicant for
27the credential understands the duties imposed on a holder of a
28teaching credential or a services credential pursuant to the Child
29Abuse and Neglect Reporting Act (Article 2.5 (commencing with
30Section 11164) of Chapter 2 of Title 1 of Part 4 of
the Penal Code),
31including, but not limited to, the duty of a holder of a teaching
32credential or a services credential to report to any police
33department, sheriff's department, county probation department
34authorized to receive reports, or county welfare department,
35whenever he or she, in his or her professional capacity or within
36the scope of his or her employment, has knowledge of or observes
37a child whom the holder of a teaching credential or a services
38credential knows or reasonably suspects has been the victim of
39child abuse or neglect.
P107 1(B) The commission shall require an initial applicant who
2submits an application in paper form, as part of the application
3process, to read and attest by signature a statement that the
4applicant understands the duties imposed on a holder of a teaching
5credential or a services credential pursuant to the Child Abuse and
6Neglect Reporting Act (Article 2.5 (commencing with Section
711164) of Chapter 2 of Title 1
of Part 4 of the Penal Code),
8including, but not limited to, the duty of a holder of a teaching
9credential or a services credential to report to any police
10department, sheriff’s department, county probation department
11authorized to receive reports, or county welfare department,
12whenever he or she, in his or her professional capacity or within
13the scope of his or her employment, has knowledge of or observes
14a child whom the holder of a teaching credential or a services
15credential knows or reasonably suspects has been the victim of
16child abuse or neglect.
17(C) The statement described in subparagraphs (A) and (B) shall
18be substantially in the following form:
20“As a documentholder authorized to work with children, it is
21part of my professional and ethical duty to report every instance
22of child abuse or neglect known or suspected to have occurred to
23a child with whom
I have professional contact.
24I understand that I must report immediately, or as soon as
25practicably possible, by telephone to a law enforcement agency
26or a child protective agency, and will send a written report and
27any evidence relating to the incident within 36 hours of becoming
28aware of the abuse or neglect of the child.
29I understand that reporting the information regarding a case of
30possible child abuse or neglect to an employer, supervisor, school
31principal, school counselor, coworker, or other person is not a
32substitute for making a mandated report to a law enforcement
33agency or a child protective agency.
34I understand that the reporting duties are individual and no
35supervisor or administrator may impede or inhibit my reporting
36duties.
37I understand that once I submit a report, I am not required to
38disclose my identity to my
employer.
39I understand that my failure to report an instance of suspected
40child abuse or neglect as required by the Child Abuse and Neglect
P108 1Reporting Act under Section 11166 of the Penal Code is a
2misdemeanor punishable by up to six months in jail or by a fine
3of one thousand dollars ($1,000), or by both that imprisonment
4and fine.
5I acknowledge and certify that as a documentholder, I will fulfill
6all the duties required of a mandated reporter.”
8(b) The commission shall not issue initially a credential, permit,
9certificate, or renewal of an emergency credential to a person to
10serve in the public schools unless the person has demonstrated
11proficiency in basic reading, writing, and mathematics skills in
12the English language as provided in Section 44252.5 or 44252.7.
13The commission shall exempt the following persons from
the basic
14skills proficiency test requirement:
15(1) A person credentialed solely for the purpose of teaching
16adults in an apprenticeship program.
17(2) An applicant for an adult education designated subject
18credential for other than an academic subject.
19(3) A person credentialed in another state who is an applicant
20for employment in a school district in this state who has passed a
21basic skills proficiency examination administered by the state
22where the person is credentialed.
23(4) A person credentialed in another state who is an applicant
24for employment in a school district in this state who has passed a
25basic skills proficiency examination that has been developed and
26administered by the school district offering that person
27employment, by cooperating school
districts, or by the appropriate
28county office of education. School districts administering a basic
29skills proficiency examination under this paragraph shall comply
30with the requirements of subdivision (h) of Section 44830. The
31applicant shall be granted a nonrenewable credential, valid for not
32longer than one year, pending fulfillment of the basic skills
33proficiency requirement pursuant to Section 44252.5.
34(5) An applicant for a child care center permit or a permit
35authorizing service in a development center for thebegin delete handicapped, begin insert handicapped ifend insert the holder of the permit is not required
36so long asend delete
37to have a baccalaureate degree.
38(6) The holder of a credential, permit, or certificate to teach,
39
other than an emergency permit, who seeks an additional
40authorization to teach.
P109 1(7) An applicant for a credential to provide service in the health
2profession.
3(8) An applicant who achieves scores on the writing, reading,
4and mathematics sections of the College Board SAT Reasoning
5Test, the enhanced ACT Test, or the California State University
6Early Assessment Program that are sufficient to waive the English
7placement test and the entry level mathematics examination
8administered by the California State University.
9(9) An applicant for an eminence credential to be issued pursuant
10to Section 44262.
11(c) (1) The Superintendent shall adopt an appropriate state test
12to measure proficiency in these basic skills. In adopting the test,
13the
Superintendent shall seek assistance from the commission and
14an advisory board. A majority of the members of the advisory
15board shall be classroom teachers. The advisory board also shall
16include representatives of school boards, school administrators,
17parents, and postsecondary educational institutions.
18(2) The Superintendent shall adopt a normed test that the
19Superintendent determines will sufficiently test basic skills for
20purposes of this section.
21(3) The Superintendent, in conjunction with the commission
22and approved teacher training institutions, shall take steps
23necessary to ensure the effective implementation of this section.
24(d) This section does not require the holders of, or applicants
25for, a designated subjects special subjects credential to pass the
26state basic skills proficiency test unless the
requirements for the
27specific credential required the possession of a baccalaureate
28degree. The governing board of a school district, or the governing
29board of a consortium of school districts, or the governing board
30involved in a joint powers agreement, which employs a holder of
31a designated subjects special subjects credential, shall establish its
32own basic skills proficiency criteria for the holders of these
33credentials and shall arrange for those individuals to be assessed.
34The basic skills proficiency criteria established by the governing
35board shall be at least equivalent to the test required by the district,
36or in the case of a consortium or a joint powers agreement, by any
37of the participating districts, for graduation from high school. The
38governing board or boards may charge a fee to individuals being
39tested to cover the costs of the test, including the costs of
40developing, administering, and grading the test.
P110 1(e) The commission shall
compile data regarding the rate of
2passing the state basic skills proficiency test by persons who have
3been trained in various institutions of higher education. The data
4shall be available to members of the public, including to persons
5who intend to enroll in teacher education programs.
6(f) (1) Each applicant to an approved credential program, unless
7exempted by subdivision (b), shall take the state basic skills
8proficiency test in order to provide both the prospective applicant
9and the program with information regarding the proficiency level
10of the applicant. Test results shall be forwarded to each California
11postsecondary educational institution to which the applicant has
12applied. The program shall use test results to ensure that, upon
13admission, each applicant receives appropriate academic assistance
14necessary to pass the state basic skills proficiency test. Persons
15residing outside the state shall take the test no
later than the second
16available administration following their enrollment in a credential
17program.
18(2) It is the intent of the Legislature that applicants for admission
19to teacher preparation programs not be denied admission on the
20basis of state basic skills proficiency test results.
Section 44277 of the Education Code is amended to
22read:
(a) The Legislature recognizes that effective
24professional growth must continue to occur throughout the careers
25of all teachers, in order that teachers remain informed of changes
26in pedagogy, subject matter, and pupil needs. In enacting this
27section, it is the intent of the Legislature to encourage teachers to
28engage in an individual program of professional growth that
29extends their content knowledge and teaching skills and for school
30districts to establish professional growth programs that give
31individual teachers a wide range of options to pursue as well as
32significant roles in determining the course of their professional
33growth.
34(b) An individual program of professional growth may consist
35of activities that are aligned with the California Standards for the
36
Teaching Profession that contribute to competence, performance,
37or effectiveness in the profession of education and the classroom
38assignments of the teacher. Acceptable activities may include,
39among other acceptable activities, the completion of courses offered
40by regionally accredited colleges and universities, including
P111 1instructor-led interactive courses delivered through online
2technologies; participation in professional conferences, workshops,
3teacher center programs, staff development programs, or a
4California Reading Professional Developmentbegin delete Programend deletebegin insert Institute
5programend insert operated pursuant to Article 2 (commencing with Section
699220) of Chapter 5 of Part 65; service as a mentor teacher;
7participation in school curriculum development projects;
8participation in systematic programs of observation and analysis
9of teaching;
service in a leadership role in a professional
10organization; and participation in educational research or
11innovation efforts. Employing agencies and the bargaining agents
12of employees may negotiate to agree on the terms of programs of
13professional growth within their jurisdictions, provided that the
14agreements shall be consistent with this section.
15(c) An individual program of professional growth may include
16a basic course in cardiopulmonary resuscitation, which includes
17training in the subdiaphragmatic abdominal thrust (also known as
18the “Heimlich maneuver”) and meets or exceeds the standards
19established by the American Heart Association or the American
20Red Cross for courses in that subject or minimum standards for
21training programs established by the Emergency Medical Services
22Authority. An individual program of professional growth may also
23include a course in first aid that meets or exceeds the standards
24established by the American Red Cross
for courses in that subject
25or minimum standards for training programs established by the
26Emergency Medical Services Authority.
27(d) (1) If a local educational agency offers a program of
28professional growth for teachers, administrators, paraprofessional
29educators, or other classified employees involved in the direct
30instruction of pupils, the local educational agency shall evaluate
31professional learning based on all of the following criteria, and
32the local educational agency is encouraged to choose professional
33learning that meets any of the following criteria:
34(A) Helps attract, grow, and retain effective educators.
35(B) Is a part of every educator’s experience in order to accelerate
36instructional improvement and support pupil learning.
37(C) Is based on needs assessment of educators and tied to
38supporting pupil learning.
39(D) Emphasizes the importance of meeting the needs of all
40pupils.
P112 1(E) Is grounded in a description of effective practice, as
2articulated in the California Standards for the Teaching Profession.
3(F) Affords educators opportunities to engage with others to
4develop their craft, including, but not limited to, opportunities to
5increase their content knowledge.
6(G) Ensures educators have adequate time to learn about,
7practice, reflect, adjust, critique, and share what educators need
8to ensure that all pupils, especially high-needs pupils, develop
9knowledge and lifelong learning skills that will help the pupils to
10be successful.
11(H) Recognizes and utilizes expertbegin delete teacher and leaderend deletebegin insert teaching
12and leadershipend insert skills.
13(I) Attends to collective growth needs as well as educators’
14individual growth needs.
15(J) Contributes to a positive, collaborative, and supportive adult
16learning environment.
17(K) Contributes to cycles of inquiry and improvement.
18(L) Is not limited to a single instance, but supports educators
19through multiple iterations or engagements.
20(M) Is based on a coherent and focused plan.
21(2) Professional learning activities may also include
22collaboration time for teachers to develop new instructional lessons,
23to select or develop common formative assessments, to analyze
24pupil data, for mentoring projects for new teachers, or for extra
25support for teachers to improve practice. Appropriate professional
26learning may be part of a coherent plan that combines school
27activities within the school, including, but not limited to, lesson
28study or coteaching, and external learning opportunities that meet
29all of the following criteria:
30(A) Are related to the academic subjects taught.
31(B) Provide time to meet and work with other teachers.
32(C) Support instruction and pupil learning to improve instruction
33in a manner that is
consistent with academic content standards.
34(e) For purposes of this section, “local educational agency”
35means a school district, county office of education, or charter
36school.
Section 44932 of the Education Code is amended to
38read:
(a) A permanent employee shall not be dismissed
40except for one or more of the following causes:
P113 1(1) Immoralbegin delete conductend deletebegin insert conduct,end insert including, but not limited to,
2egregious misconduct. Forbegin delete theend delete purposes of this chapter, “egregious
3misconduct” is defined exclusively as immoral conduct that is the
4basis for an offense described in Section 44010 or 44011 of this
5code, or in Sections 11165.2 to 11165.6, inclusive, of the Penal
6Code.
7(2) Unprofessional conduct.
8(3) Commission, aiding, or advocating the commission of acts
9of criminal syndicalism, as prohibited by Chapter 188 of the
10Statutes of 1919, or in any amendment to that chapter.
11(4) Dishonesty.
12(5) Unsatisfactory performance.
13(6) Evident unfitness for service.
14(7) Physical or mental condition unfitting him or her to instruct
15or associate with children.
16(8) Persistent violation of or refusal to obey the school laws of
17the state or reasonable regulations prescribed for the government
18of the public schools by the state board or by the governing board
19of the school district employing him or
her.
20(9) Conviction of a felony or of any crime involving moral
21turpitude.
22(10) Violation of Section 51530 or conduct specified in Section
231028 of the Government Code, added by Chapter 1418 of the
24Statutes of 1947.
25(11) Alcoholism or other drug abuse that makes the employee
26unfit to instruct or associate with children.
27(b) The governing board of a school district may suspend
28without pay for a specific period of time on grounds of
29unprofessional conduct a permanent certificated employee or, in
30a school district with an average daily attendance of less than 250
31pupils, a probationary employee, pursuant to the procedures
32specified in Sections 44933, 44934, 44934.1, 44935, 44936, 44937,
3344943, and 44944. This authorizationbegin delete shallend deletebegin insert
doesend insert not apply to a
34school district that has adopted a collective bargaining agreement
35pursuant to subdivision (b) of Section 3543.2 of the Government
36Code.
Section 44939 of the Education Code is amended to
38read:
(a) This sectionbegin delete shall applyend deletebegin insert appliesend insert only to dismissal
40or suspension proceedings initiated pursuant to Section 44934.
P114 1(b) Upon the filing of written charges, duly signed and verified
2by the person filing them with the governing board of a school
3district, or upon a written statement of charges formulated by the
4governing board of a school district, charging a permanent
5employee of the school district with immoral conduct, conviction
6of a felony or of any crime involving moral turpitude, with
7incompetency due to mental disability, with willful refusal to
8perform regular
assignments without reasonable cause, as
9prescribed by reasonable rules and regulations of the employing
10school district, or with violation of Section 51530, the governing
11board of the school district may, if it deems that action necessary,
12immediately suspend the employee from his or her duties and give
13notice to him or her of his or her suspension, and that 30 days after
14service of the notice of dismissal, he or she will be dismissed,
15unless he or she demands a hearing.
16(c) (1) An employee who has been placed on suspension
17pursuant to this section may serve and file with the Office of
18Administrative Hearings a motion for immediate reversal of
19suspension. Review of a motion filed pursuant to this section shall
20be limited to a determination as to whether the facts as alleged in
21the statement of charges, if true, are sufficient to constitute a basis
22for immediate suspension under this section. The motion shall
23include a
memorandum of points and authorities setting forth law
24and argument supporting the employee’s contention that the
25statement of charges does not set forth a sufficient basis for
26immediate suspension.
27(2) The motion shall be served upon the governing board of the
28school district and filed with the Office of Administrative Hearings
29within 30 days after service upon the employee of the initial
30pleading in the matter. The governing board of the school district
31begin delete shall haveend deletebegin insert hasend insert the right to serve and file a written response to the
32motion before or at the time of hearing.
33(3) The hearing on the motion for immediate reversal of
34suspension shall be held no later than 30 days after the motion is
35filed
with the Office of Administrative Hearings.
36(4) The administrative law judge shall, no later than 15 days
37after the hearing, issue an order denying or granting the motion.
38The order shall be in writing, and a copy of the order shall be
39served by the Office of Administrative Hearings upon the parties.
40The grant or denial of the motion shall be without prejudice to
P115 1consideration by the Commission on Professionalbegin delete Competenceend delete
2begin insert
Competence,end insert based upon the full evidentiary record before it, of
3the validity of the grounds for dismissal. The ruling shall not be
4considered by the commission in determining the validity of the
5grounds for dismissal, and shall not have any bearing on the
6commission’s determination regarding the grounds for dismissal.
7(5) An order granting a motion for immediate reversal of
8suspension shall become effective within five days of service of
9the order. The school district shall make the employee whole for
10any lost wages, benefits, and compensation within 14 days after
11service of an order granting the motion.
12(6) A motion made pursuant to this section shall be the exclusive
13means of obtaining interlocutory review of suspension pending
14dismissal. The grant or denial of the motionbegin delete shallend deletebegin insert
isend insert notbegin delete beend delete subject
15to interlocutory judicial review.
16(d) A motion for immediate reversal of suspension pursuant to
17this sectionbegin delete shall have no bearing onend deletebegin insert does not affectend insert the authority
18of a governing board of a school district to determine the physical
19placement and assignment of an employee who is suspended or
20placed on administrative leave during the review of the motion or
21while dismissal charges are pending.
Section 44940 of the Education Code is amended to
23read:
(a) For purposes of this section, “charged with a
25mandatory leave of absence offense” is defined to mean charged
26by complaint, information, or indictment filed in a court of
27competent jurisdiction with the commission of any sex offense as
28defined in Section 44010, with a violation or attempted violation
29of Section 187 of the Penal Code, or with the commission of any
30offense involving aiding or abetting the unlawful sale, use, or
31exchange to minors of controlled substances listed in Schedule I,
32II, or III, as contained in Sections 11054, 11055, and 11056 of the
33Health and Safety Code.
34(b) For purposes of this section, “charged with an optional leave
35of absence offense” is defined to mean a charge by complaint,
36information, or indictment filed in a court of competent
jurisdiction
37with the commission of any controlled substance offense as defined
38in Section 44011 orbegin delete 87011,end deletebegin insert 87011 of this code, orend insert Sections 11357
39to 11361, inclusive, or Section 11363, 11364, or 11370.1 of the
40Health and Safety Code, insofar as these sections relate to any
P116 1controlled substances except marijuana, mescaline, peyote, or
2tetrahydrocannabinols.
3(c) For purposes of this section and Section 44940.5, the term
4“school district” includes county offices of education.
5(d) (1) If a certificated employee of a school district is charged
6with a mandatory leave of absence offense, as defined in
7subdivision (a), upon being informed that a charge has been filed,
8the
governing board of the school district shall immediately place
9the employee on compulsory leave of absence. The duration of
10the leave of absence shall be until a time not more than 10 days
11after the date of entry of the judgment in the proceedings. No later
12than 10 days after receipt of the complaint, information, or
13indictment described by subdivision (a), the school district shall
14forward a copy to the Commission on Teacher Credentialing.
15(2) Upon receiving a copy of a complaint, information, or
16indictment described in subdivision (a) and forwarded by a school
17district, the Commission on Teacher Credentialing shall
18automatically suspend the employee’s teaching or service
19credential. The duration of the suspension shall be until a time not
20more than 10 days after the date of entry of the judgment in the
21proceedings.
22(e) (1) If a certificated employee of a
school district is charged
23with an optional leave of absence offense as defined in subdivision
24(b), the governing board of the school district may immediately
25place the employee upon compulsory leave in accordance with the
26procedure in this section and Section 44940.5. If any certificated
27employee is charged with an offense deemed to fall into both the
28mandatory and the optional leave of absence categories, as defined
29in subdivisions (a) and (b), that offense shall be treated as a
30mandatory leave of absence offense for purposes of this section.
31No later than 10 days after receipt of the complaint, information,
32or indictment described by subdivision (a), the school district shall
33forward a copy to the Commission on Teacher Credentialing.
34(2) Upon receiving a copy of a complaint, information, or
35indictment described in subdivision (a) and forwarded by a school
36district, the Commission on Teacher Credentialing shall
37automatically suspend the
employee’s teaching or service
38credential. The duration of the suspension shall be until a time not
39more than 10 days after the date of entry of the judgment in the
40proceedings.
Section 44944 of the Education Code is amended to
2read:
(a) This sectionbegin delete shall applyend deletebegin insert appliesend insert only to dismissal
4or suspension proceedings initiated pursuant to Section 44934.
5(b) (1) (A) In a dismissal or suspension proceeding initiated
6pursuant to Section 44934, if a hearing is requested by the
7employee, the hearing shall be commenced within six months from
8the date of the employee’s demand for a hearing. A continuance
9shall not extend the date for the commencement of the hearing
10more than six months from the date of the employee’s request for
11a hearing, except for extraordinary
circumstances, as determined
12by the administrative law judge. If extraordinary circumstances
13are found that extend the date for the commencement of the
14hearing, the deadline for concluding the hearing and closing the
15record pursuant to this subdivision shall be extended for a period
16of time equal to the continuance. The hearing date shall be
17established after consultation with the employee and the governing
18board of the school district, or their representatives, except that if
19the parties are not able to reach an agreement on a date, the Office
20of Administrative Hearings shall unilaterally set a date in
21compliance with this section. The hearing shall be completed by
22a closing of the record within seven months of the date of the
23employee’s demand for a hearing. A continuance shall not extend
24the date for the close of the record more than seven months from
25the date of the employee’s request for a hearing, except for good
26cause, as determined by the administrative law judge.
27(B) begin deleteWhere end deletebegin insertIf end insertsubstantial progress has been made in completing
28the previously scheduled days of the hearing within the
29seven-month period but the hearing cannot be completed, for good
30cause shown, within the seven-month period, the period for
31completing the hearing may be extended by the presiding
32administrative law judge. If the administrative law judge grants a
33continuance under this subparagraph, he or she shall establish a
34reasonable timetable for the completion of the hearing and the
35closing of the record. The hearing shall be initiated and conducted,
36and a decision made, in accordance with Chapter 5 (commencing
37with Section 11500) of Part 1 of Division 3 of Title 2 of the
38Government Code, and the Commission on Professional
39Competence shall have all of
the power granted to an agency
40pursuant to that chapter, except as described in this article.
P118 1(2) (A) A witness shall not be permitted to testify at the hearing
2except upon oath or affirmation.begin delete No testimonyend deletebegin insert Testimonyend insert shallbegin insert notend insert
3 be given or evidencebegin insert shall not beend insert introduced relating to matters
4that occurred more than four years before the date of the filing of
5the notice, except allegations of an act described in Section 44010
6of this code or Sections 11165.2 to 11165.6, inclusive, of the Penal
7Code.
8(B) Evidence of records regularly kept by the governing board
9of the school district concerning the employee may be introduced,
10but no decision relating to the dismissal or suspension of an
11employee shall be made based on charges or evidence of any nature
12relating to matters occurring more than four years before the filing
13of the notice, except allegations of an act described in Section
1444010 of this code or Sections 11165.2 to 11165.6, inclusive, of
15the Penal Code.
16(c) (1) The hearing provided for in this section shall be
17conducted by a Commission on Professional Competence, unless
18the parties submit a statement in writing to the Office of
19Administrative Hearings, indicating that both parties waive the
20right to convene a Commission on Professional Competence and
21stipulate to having the hearing conducted by a single administrative
22law judge. If the parties elect
to waive a hearing before the
23Commission on Professional Competence, the hearing shall be
24initiated and conducted, and a decision made, in accordance with
25Chapter 5 (commencing with Section 11500) of Part 1 of Division
263 of Title 2 of the Government Code, and the administrative law
27judge conducting the hearing shall have all the powers granted to
28a Commission on Professional Competence pursuant to that
29chapter, except as described in this article.
30(2) If the parties elect not to waive a hearing before a
31Commission on Professional Competence, one member of the
32commission shall be selected by the employee, one member shall
33be selected by the governing board of the school district, and one
34member shall be an administrative law judge of the Office of
35Administrative Hearings who shall be chairperson and a voting
36member of the commission and shall be responsible for assuring
37that the legal rights of the parties are protected at the hearing.
38(3) The governing board of the school district and the employee
39shall select Commission on Professional Competence members
40no later than 45 days before the date set for hearing, and shall serve
P119 1notice of their selection upon all other parties and upon the Office
2of Administrative Hearings. Failure to meet this deadline shall
3constitute a waiver of the right to selection, and the county board
4of education or its specific designee shall immediately make the
5selection. If the county board of education is also the governing
6board of the school district or has by statute been granted the
7powers of a governing board, the selection shall be made by the
8Superintendent, who shall be reimbursed by the school district for
9all costs incident to the selection.
10(4) Any party who believes that a selected Commission on
11Professional Competence member is not qualified may file an
12objection, including
a statement describing the basis for the
13objection, with the Office of Administrative Hearings and serve
14the objection and statement upon all other parties within 10 days
15of the date that the notice of selection is filed. Within seven days
16after the filing of any objection, the administrative law judge
17assigned to the matter shall rule on the objection or convene a
18teleconference with the parties for argument.
19(5) (A) The member selected by the governing board of the
20school district and the member selected by the employee shall not
21be related to the employee and shall not be employees of the school
22district initiating the dismissal or suspension. Each member shall
23hold a currently valid credential and have at least three years’
24experience within the past 10 years in the discipline of the
25employee.
26(B) For purposes of this paragraph, the following terms have
27
the following meanings:
28(i) For an employee subject to dismissal whose most recent
29teaching assignment is in kindergarten or any of the grades 1 to 6,
30inclusive, “discipline” means a teaching assignment in kindergarten
31or any of the grades 1 to 6, inclusive.
32(ii) For an employee subject to dismissal whose most recent
33assignment requires an education specialist credential or a services
34credential, “discipline” means an assignment that requires an
35education specialist credential or a services credential, respectively.
36(iii) For an employee subject to dismissal whose most recent
37teaching assignment is in any of the grades 7 to 12, inclusive,
38“discipline” means a teaching assignment in any of grades 7 to 12,
39inclusive, in the same area of study, as that term is used in Section
P120 151220, as the most recent teaching
assignment of the employee
2subject to dismissal.
3(d) (1) The decision of the Commission on Professional
4Competence shall be made by a majority vote, and the commission
5shall prepare a written decision containing findings of fact,
6determinations of issues, and a disposition that shall be, solely,
7one of the following:
8(A) That the employee should be dismissed.
9(B) That the employee should be suspended for a specific period
10of time without pay.
11(C) That the employee should not be dismissed or suspended.
12(2) The decision of the Commission on Professional Competence
13that the employee should not be dismissed or suspended shall not
14be based on nonsubstantive procedural
errors committed by the
15school district or governing board of the school district unless the
16errors are prejudicial errors.
17(3) The Commission on Professional Competence shall not have
18the power to dispose of the charge of dismissal by imposing
19probation or other alternative sanctions. The imposition of
20suspension pursuant to subparagraph (B) of paragraph (1) shall be
21available only in a suspension proceeding authorized pursuant to
22subdivision (b) of Section 44932 or Section 44933.
23(4) The decision of the Commission on Professional Competence
24shall be deemed to be the final decision of the governing board of
25the school district.
26(5) The governing board of the school district may adopt from
27time to time rules and procedures not inconsistent with this section
28as may be necessary to effectuate this section.
29(6) The governing board of the school district and the employee
30shall have the right to be represented by counsel.
31(e) (1) If the member selected by the governing board of the
32school district or the member selected by the employee is employed
33by any school district in this state, the member shall, during any
34service on a Commission on Professional Competence, continue
35to receive salary, fringe benefits, accumulated sick leave, and other
36leaves and benefits from the school district in which the member
37is employed, but shallbegin insert notend insert receivebegin delete noend delete additional compensation or
38honorariums for service on the commission.
39(2) If the member selected is a retired employee, the member
40shall receive pay at the daily substitute teacher rate in the school
P121 1district that is a party to the hearing. Service on a Commission on
2Professional Competence shall not be credited toward retirement
3benefits.
4(3) If service on a Commission on Professional Competence
5occurs during summer recess or vacation periods, the member shall
6receive compensation proportionate to that received during the
7current or immediately preceding contract period from the
8member’s employing school district, whichever amount is greater.
9(f) (1) If the Commission on Professional Competence
10determines that the employee should be dismissed or suspended,
11the governing board of the school district and the state shall share
12equally the expenses of the hearing, including the cost of the
13administrative law judge.
The state shall pay any costs incurred
14under paragraphs (2) and (3) of subdivision (e), the reasonable
15expenses, as determined by the administrative law judge, of the
16member selected by the governing board of the school district and
17the member selected by the employee, including, but not limited
18to, payments or obligations incurred for travel, meals, and lodging,
19and the cost of the substitute or substitutes, if any, for the member
20selected by the governing board of the school district and the
21member selected by the employee. The Controller shall pay all
22claims submitted pursuant to this paragraph from the General Fund,
23and may prescribe reasonable rules, regulations, and forms for the
24submission of the claims. The employee and the governing board
25of the school district shall pay their own attorney’s fees.
26(2) If the Commission on Professional Competence determines
27that the employee should not be dismissed or suspended, the
28governing board of
the school district shall pay the expenses of
29the hearing, including the cost of the administrative law judge, any
30costs incurred under paragraphs (2) and (3) of subdivision (e), the
31reasonable expenses, as determined by the administrative law
32judge, of the member selected by the governing board of the school
33district and the member selected by the employee, including, but
34not limited to, payments or obligations incurred for travel, meals,
35and lodging, the cost of the substitute or substitutes, if any, for the
36member selected by the governing board of the school district and
37the member selected by the employee, and reasonable attorney’s
38fees incurred by the employee.
39(3) As used in this section, “reasonable expenses” shall not be
40deemed “compensation” within the meaning of subdivision (e).
P122 1(4) If either the governing board of the school district or the
2employee petitions a court
of competent jurisdiction for review of
3the decision of the Commission on Professionalbegin delete Competenceend delete
4begin insert
Competence,end insert the payment of expenses to members of the
5commission required by this subdivision shall not be stayed.
6(5) If the decision of the Commission on Professional
7Competence is reversed or vacated by a court of competent
8jurisdiction, either the state, having paid the commission members’
9expenses, shall be entitled to reimbursement from the governing
10board of the school district for those expenses, or the governing
11board of the school district, having paid the expenses, shall be
12entitled to reimbursement from the state. If either the governing
13board of the school district or the employee petitions a court of
14competent jurisdiction for review of the decision to overturn the
15administrative law judge’s decision, the payment of the expenses
16of the hearing, including the cost of the administrative law judge
17required by this paragraph, shall be stayed until no further appeal
18is sought, or all appeals are
exhausted.
19(g) The hearing provided for in this section shall be conducted
20in a place selected by agreement among the members of the
21Commission on Professional Competence. In the absence of
22agreement, the place shall be selected by the administrative law
23judge.
Section 44944.05 of the Education Code is amended
25to read:
(a) In a dismissal or suspension proceeding initiated
27pursuant to Section 44934, in lieu of written discovery required
28pursuant to Section 11507.6 of the Government Code, the parties
29shall make disclosures as described in this section. This section
30begin delete shallend deletebegin insert doesend insert not apply to dismissal or suspension proceedings
31initiated pursuant to Section 44934.1.
32(b) (1) An initial disclosure shall comply with the following
33requirements:
34(A) A party shall, without awaiting a discovery request, provide
35to
the other parties both of the following:
36(i) The name and, if known, the address and telephone number
37of each individual likely to have discoverable information, along
38with the subjects of information relating to the allegations made
39in the charges and the parties’ claims and defenses, unless the use
40would be solely for impeachment purposes.
P123 1(ii) A copy of all documents, electronically stored information,
2and tangible items that the disclosing party has in its possession,
3custody, or control relating to the allegations made in the charges
4and the parties’ claims or defenses, unless the use would be solely
5for impeachment.
6(B) The school district and the employee shall make their initial
7disclosures within 45 days of the date of the employee’s demand
8for a hearing.
9(C) A party shall make its initial disclosures based on the
10information then reasonably available to it. A party is not excused
11from making its disclosures because it has not fully investigated
12the case or because it challenges the sufficiency of another party’s
13disclosures. A party’s failure to make initial disclosures within the
14deadlines set forth in this section shall preclude the party from
15introducing witnesses or evidence not disclosed at the hearing,
16unless the party shows good cause for its failure to timely disclose.
17(D) A party has an obligation to promptly supplement its initial
18disclosures as new information or evidence becomes known or
19available. Supplemental disclosures shall be made as soon as
20possible, and no later than 60 days before the date of
21commencement of the hearing. A party’s failure to make
22supplemental disclosures promptly upon discovery or availability
23of new information or evidence shall preclude the
party from
24introducing witnesses or evidence not disclosed at the hearing,
25unless the party shows good cause for its failure to timely disclose.
26(2) The disclosure of expert testimony shall comply with the
27following requirements:
28(A) A party shall also disclose to the other parties the identities
29of any expert witnesses whose testimony it may use at the hearing.
30(B) The disclosure specified in subparagraph (A) shall be
31accompanied by a summary of the witness’ expected testimony,
32including a description of the facts and data considered by the
33witness; a description of the witness’ qualifications, including a
34list of all publications authored in the previous 10 years; a list of
35all other cases in which, during the previous four years, the witness
36testified as an expert at a hearing or by deposition; and a statement
37of
the compensation to be paid to the expert witness.
38(C) Expert witness disclosures shall be made no later than 60
39days before the date of commencement of the hearing. A party’s
40failure to make full and timely expert witness disclosures shall
P124 1preclude the party’s use of the expert witness’ testimony or
2evidence at the hearing.
3(3) Prehearing disclosures shall comply with the following
4requirements:
5(A) In addition to the disclosures required in paragraphs (1) and
6(2), a party shall provide to the other parties the following
7information about the evidence that it may present at the hearing:
8(i) The name, and, if not previously provided, the address and
9telephone number of each witness, separately identifying those
10the party expects to present and those it
may call if the need arises.
11(ii) An identification of each exhibit, separately identifying
12those items the party expects to offer and those it may offer if the
13need arises.
14(B) Prehearing disclosures shall be made at least 30 days before
15the hearing.
16(i) Within 14 days after prehearing disclosures are made, a party
17shall file and serve any objections, along with the grounds for each
18objection, to the admissibility of evidence.
19(ii) These objections shall be decided on the first day ofbegin insert theend insert
20 hearing, or at a prehearing conference conducted pursuant to
21Section 11511.5 of the Government Code. Documents and
22individuals not timely disclosed without good
cause shall be
23precluded from admission at the hearing.
24(c) In addition to the disclosures required by subdivision (a),
25the parties may obtain discovery by oral deposition in California,
26in accordance with Sections 2025.010 to 2025.620, inclusive, of
27the Code of Civil Procedure, except as described in this article.
28The school district may take the depositions of the employee and
29no more than four other witnesses, and the employee may take
30depositions of no more than five witnesses. Each witness deposition
31is limited to seven hours. An administrative law judge may allow
32the parties to conduct additional depositions only upon a showing
33of good cause. If a motion to conduct additional depositions is
34granted by the administrative law judge, the employee shall be
35given a meaningful opportunity to respond to new evidence
36introduced as a result of the additional depositions. An order
37granting a motion for additional depositions shall not constitute
38an
extraordinary circumstance or good cause for purposes of
39extending the deadlines set forth in paragraph (1) of subdivision
40(b) of Section 44944.
P125 1(d) If the right to disclosures or oral depositions is denied by
2either the employee or the governing board, the exclusive right of
3a party seeking an order compelling production of discovery shall
4be pursuant to Section 11507.7 of the Government Code. If a party
5seeks protection from unreasonable or oppressive discovery
6demands, the exclusive right of a party seeking an order for
7protection shall be pursuant to Section 11450.30 of the Government
8Code.
Section 44944.3 of the Education Code is amended
10to read:
At a hearing conducted pursuant to Section 44944 or
1244944.1, the administrative law judge, before admitting any
13testimony or evidence concerning an individual pupil, shall
14determine whether the introduction of the testimony or evidence
15at an open hearing would violate any provision of Article 5
16(commencing with Section 49073) of Chapter 6.5 of Part 27 of
17Division 4, relating to privacy of pupil records. If the administrative
18law judge, in his or her discretion, determines that any of those
19provisions would be violated, he or she shall order that the hearing,
20or any portionbegin delete thereofend deletebegin insert of the hearingend insert at which the testimony or
21evidence would be produced, be conducted
in executive session.
Section 46116 of the Education Code is amended to
23read:
(a) No later than July 1, 2017, the Superintendent shall
25provide the Legislature with an evaluation of kindergarten program
26implementation in the state, including part-day and full-day
27kindergarten programs. The evaluation shall include recommended
28best practices for providing full-day kindergarten programs.
29(b) The evaluation shall include a sample of local educational
30agencies’begin delete full dayend deletebegin insert full-dayend insert and part-day kindergarten programs
31from across the state. It is the intent of the Legislature that this
32sample be representative of the diversity of the state, and shall
33include both
urban and rural and small and large local educational
34agencies within school districts.
35(c) The report required pursuant to this section shall be submitted
36in compliance with Section 9795 of the Government Code.
37(d) This section shall not become operative until the Legislature
38makes an appropriation for these purposes in the annual Budget
39Act or in any other statute.
P126 1(e) This section shall become inoperative on July 1, 2017, and,
2as of January 1, 2018, is repealed, unless a later enacted statute,
3that becomes operative on or before January 1, 2018, deletes or
4extends the dates on which it becomes inoperative and is repealed.
The heading of Article 3 (commencing with Section
646330) of Chapter 3 of Part 26 of Division 4 of Title 2 of the 7Education Code is repealed.
8
The heading of Article 4 (commencing with Section
1246340) of Chapter 3 of Part 26 of Division 4 of Title 2 of the 13Education Code is repealed.
14
Section 47605 of the Education Code is amended to
18read:
(a) (1) Except as set forth in paragraph (2), a petition
20for the establishment of a charter school within a school district
21may be circulated by one or more persons seeking to establish the
22charter school. A petition for the establishment of a charter school
23shall identify a single charter school that will operate within the
24geographic boundaries of that school district. A charter school
25may propose to operate at multiple sites within the schoolbegin delete district, begin insert district ifend insert each location is identified in the charter school
26as long asend delete
27petition. The petition may be submitted to the governing board of
28the school district for
review after either of the following conditions
29is met:
30(A) The petition is signed by a number of parents or legal
31guardians of pupils that is equivalent to at least one-half of the
32number of pupils that the charter school estimates will enroll in
33the school for its first year of operation.
34(B) The petition is signed by a number of teachers that is
35equivalent to at least one-half of the number of teachers that the
36charter school estimates will be employed at the school during its
37first year of operation.
38(2) A petition that proposes to convert an existing public school
39to a charter school that would not be eligible for a loan pursuant
40to subdivisionbegin delete (b)end deletebegin insert
(c)end insert of Section 41365 may be circulated by one
P127 1or more persons seeking to establish the charter school. The petition
2may be submitted to the governing board of the school district for
3review after the petition is signed by not less than 50 percent of
4the permanent status teachers currently employed at the public
5school to be converted.
6(3) A petition shall include a prominent statement that a
7signature on the petition means that the parent or legal guardian
8is meaningfully interested in having his or her child or ward attend
9the charter school, or in the case of a teacher’s signature, means
10that the teacher is meaningfully interested in teaching at the charter
11school. The proposed charter shall be attached to the petition.
12(4) After receiving approval of its petition, a charter school that
13proposes to establish operations at one or more
additional sites
14shall request a material revision to its charter and shall notify the
15authority that granted its charter of those additional locations. The
16authority that granted its charter shall consider whether to approve
17those additional locations at an open, public meeting. If the
18additional locations are approved, they shall be a material revision
19to the charter school’s charter.
20(5) A charter school that is unable to locate within the
21jurisdiction of the chartering school district may establish one site
22outside the boundaries of the school district, but within the county
23in which that school district is located, if the school district within
24the jurisdiction of which the charter school proposes to operate is
25notified in advance of the charter petition approval, the county
26superintendent of schools and the Superintendent are notified of
27the location of the charter school before it commences operations,
28and either of the following
circumstances exists:
29(A) The school has attempted to locate a single site or facility
30to house the entire program, but a site or facility is unavailable in
31the area in which the school chooses to locate.
32(B) The site is needed for temporary use during a construction
33or expansion project.
34(6) Commencing January 1, 2003, a petition to establish a charter
35school may not be approved to serve pupils in a grade level that
36is not served by the school district of the governing board
37considering the petition, unless the petition proposes to serve pupils
38in all of the grade levels served by that school district.
39(b) No later than 30 days after receiving a petition, in accordance
40with subdivision (a), the governing board of the school district
P128 1shall hold a public
hearing on the provisions of the charter, at
2which time the governing board of the school district shall consider
3the level of support for the petition by teachers employed by the
4begin insert
schoolend insert district, other employees of thebegin insert schoolend insert district, and parents.
5Following review of the petition and the public hearing, the
6governing board of the school district shall either grant or deny
7the charter within 60 days of receipt of the petition, provided,
8however, that the date may be extended by an additional 30 days
9if both parties agree to the extension. In reviewing petitions for
10the establishment of charter schools pursuant to this section, the
11chartering authority shall be guided by the intent of the Legislature
12that charter schools are and should become an integral part of the
13California educational system and thatbegin insert theend insert establishment of charter
14schools should be encouraged. The governing board of the school
15district shall grant a charter for the
operation of a school under this
16part if it is satisfied that granting the charter is consistent with
17sound educational practice. The governing board of the school
18district shall not deny a petition for the establishment of a charter
19school unless it makes written factual findings, specific to the
20particular petition, setting forth specific facts to support one or
21more of the following findings:
22(1) The charter school presents an unsound educational program
23for the pupils to be enrolled in the charter school.
24(2) The petitioners are demonstrably unlikely to successfully
25implement the program set forth in the petition.
26(3) The petition does not contain the number of signatures
27required by subdivision (a).
28(4) The petition does not contain an affirmation
of each of the
29conditions described in subdivision (d).
30(5) The petition does not contain reasonably comprehensive
31descriptions of all of the following:
32(A) (i) begin deleteA description of the end deletebegin insertThe end inserteducational program of the
33begin insert
charterend insert school, designed, among other things, to identify those
34whom thebegin insert charterend insert school is attempting to educate, what it means
35to be an “educated person” in the 21st century, and how learning
36best occurs. The goals identified in that program shall include the
37objective of enabling pupils to become self-motivated, competent,
38and lifelong learners.
39(ii) begin deleteA description, end deletebegin insertThe annual goals end insertfor the charterbegin delete school, of begin insert schoolend insert
for all pupils and for each subgroup of pupils
40annual goals,end delete
P129 1identified pursuant to Section 52052, to be achieved in the state
2priorities, as described in subdivision (d) of Section 52060, that
3apply for the grade levels served, or the nature of the program
4operated, by the charter school, and specific annual actions to
5achieve those goals. A charter petition may identify additional
6school priorities, the goals for the school priorities, and the specific
7annual actions to achieve those goals.
8(iii) If the proposedbegin insert charterend insert school will serve high school pupils,
9begin delete a description ofend delete the manner in which the charter school will inform
10parents about the transferability of courses to other public high
11schools and the eligibility of courses to meet college entrance
12
requirements. Courses offered by the charter school that are
13accredited by the Western Association of Schools and Colleges
14may be considered transferable and courses approved by the
15University of California or the California State University as
16creditable under the “A” to “G” admissions criteria may be
17considered to meet college entrance requirements.
18(B) The measurable pupil outcomes identified for use by the
19charter school. “Pupil outcomes,” for purposes of this part, means
20the extent to which all pupils of the school demonstrate that they
21have attained the skills, knowledge, and attitudes specified as goals
22in the school’s educational program. Pupil outcomes shall include
23outcomes that address increases in pupil academic achievement
24both schoolwide and for all groups of pupils served by the charter
25school, as that term is defined in subparagraph (B) of paragraph
26(3) of subdivision (a) of Section 47607. The pupil outcomes shall
27align with the
state priorities, as described in subdivision (d) of
28Section 52060, that apply for the grade levels served, or the nature
29of the program operated, by the charter school.
30(C) The method by which pupil progress in meeting those pupil
31outcomes is to be measured. To the extent practicable, the method
32for measuring pupil outcomes for state priorities shall be consistent
33with the way information is reported on a school accountability
34report card.
35(D) The governance structure of thebegin insert charterend insert school, including,
36but not limited to, the process to be followed by thebegin insert charterend insert school
37to ensure parental involvement.
38(E) The qualifications to be met by individuals to be employed
39by thebegin insert charterend insert
school.
P130 1(F) The procedures that thebegin insert charterend insert school will follow to ensure
2the health and safety of pupils and staff. These procedures shall
3include the requirement that each employee of thebegin insert charterend insert school
4furnishbegin delete the schoolend deletebegin insert itend insert with a criminal record summary as described
5in Section 44237.
6(G) The means by which the school will achieve a racial and
7ethnic balance among its pupils that is reflective of the general
8population residing within the territorial jurisdiction
of the school
9district to which the charter petition is submitted.
10(H) Admission requirements, if applicable.
11(I) The manner in which annual, independent financial audits
12shall be conducted, which shall employ generally accepted
13accounting principles, and the manner in which audit exceptions
14and deficiencies shall be resolved to the satisfaction of the
15chartering authority.
16(J) The procedures by which pupils can be suspended or
17expelled.
18(K) The manner by which staff members of the charter schools
19will be covered by the State Teachers’ Retirement System, the
20Public Employees’ Retirement System, or federal social security.
21(L) The public school attendance alternatives for pupils residing
22
within the school district who choose not to attend charter schools.
23(M) begin deleteA description of the end deletebegin insertThe end insertrights ofbegin delete anyend deletebegin insert anend insert employee of the
24school district upon leaving the employment of the school district
25to work in a charter school, and of any rights of return to the school
26district after employment at a charter school.
27(N) The procedures to be followed by the charter school and
28the entity granting the charter to resolve disputes relating to
29provisions of the charter.
30(O) A declaration whether or not the charter school shall be
31deemed the exclusive public school employer of the employees of
32the charter school for purposes of Chapter 10.7 (commencing with
33Section 3540) of Division 4 of Title 1 of the Government Code.
34(P) A description of the
end delete
35begin insert (O)end insertbegin insert end insertbegin insertTheend insert procedures to be used if the charter school closes. The
36procedures shall ensure a final audit of thebegin insert charterend insert school to
37determine the disposition of all assets and liabilities of the charter
38school, including plans for disposing of any net assets and for the
39maintenance and transfer of pupil records.
P131 1(6) The petition does not contain a declaration of whether or
2not the
charter school shall be deemed the exclusive public
3employer of the employees of the charter school for purposes of
4Chapter 10.7 (commencing with Section 3540) of Division 4 of
5Title 1 of the Government Code.
6(c) (1) Charter schools shall meet all statewide standards and
7conduct the pupil assessments required pursuant to Sections 60605
8and 60851 and any other statewide standards authorized in statute
9or pupil assessments applicable to pupils in noncharter public
10schools.
11(2) Charter schools shall, on a regular basis, consult with their
12parents, legal guardians, and teachers regarding thebegin insert charterend insert school’s
13educational programs.
14(d) (1) In
addition to any other requirement imposed under this
15part, a charter school shall be nonsectarian in its programs,
16admission policies, employment practices, and all other operations,
17shall not charge tuition, and shall not discriminate againstbegin delete anyend deletebegin insert aend insert
18 pupil on the basis of the characteristics listed in Section 220. Except
19as provided in paragraph (2), admission to a charter school shall
20not be determined according to the place of residence of the pupil,
21or of his or her parent or legal guardian, within this state, except
22that an existing public school converting partially or entirely to a
23charter school under this part shall adopt and maintain a policy
24giving admission preference to pupils who reside within the former
25attendance area of that public school.
26(2) (A) A charter school shall admit all pupils who wish to
27attend the school.
28(B) If the number of pupils who wish to attend the charter school
29exceeds the school’s capacity, attendance, except for existing pupils
30of the charter school, shall be determined by a public random
31drawing. Preference shall be extended to pupils currently attending
32the charter school and pupils who reside in the district except as
33provided for in Section 47614.5. Other preferences may be
34permitted by the chartering authority on an individual school basis
35and only if consistent with the law.
36(C) In the event of a drawing, the chartering authority shall
37make reasonable efforts to accommodate the growth of the charter
38school andbegin delete in no eventend delete shallbegin insert
notend insert take any action to impede the
39charter school from expanding enrollment to meet pupil demand.
P132 1(3) If a pupil is expelled or leaves the charter school without
2graduating or completing the school year for any reason, the charter
3school shall notify the superintendent of the school district of the
4pupil’s last known address within 30 days, and shall, upon request,
5provide that school district with a copy of the cumulative record
6of the pupil, including a transcript of grades or report card, and
7health information. This paragraph applies only to pupils subject
8to compulsory full-time education pursuant to Section 48200.
9(e) The governing board of a school district shall not require
10begin delete anyend deletebegin insert
anend insert
employee of the school district to be employed in a charter
11school.
12(f) The governing board of a school district shall not require
13begin delete anyend deletebegin insert aend insert pupil enrolled in the school district to attend a charter school.
14(g) The governing board of a school district shall require that
15the petitioner or petitioners provide information regarding the
16proposed operation and potential effects of thebegin insert charterend insert school,
17including, but not limited to, the facilities to be used by the school,
18the manner in which administrative services of the school are to
19be provided, and potential civil liability
effects, if any, upon the
20school and upon the school district. The description of the facilities
21to be used by the charter school shall specify where the school
22intends to locate. The petitioner or petitioners shall also be required
23to provide financial statements that include a proposed first-year
24operational budget, including startup costs, and cashflow and
25financial projections for the first three years of operation.
26(h) In reviewing petitions for the establishment of charter
27schools within the school district, the governing board of the school
28district shall give preference to petitions that demonstrate the
29capability to provide comprehensive learning experiences to pupils
30identified by the petitioner or petitioners as academically low
31achieving pursuant to the standards established by the department
32under Section 54032, asbegin delete itend deletebegin insert
that sectionend insert
read before July 19, 2006.
33(i) Upon the approval of the petition by the governing board of
34the school district, the petitioner or petitioners shall provide written
35notice of that approval, including a copy of the petition, to the
36applicable county superintendent of schools, the department, and
37the state board.
38(j) (1) If the governing board of a school district denies a
39petition, the petitioner may elect to submit the petition for the
40establishment of a charter school to the county board of education.
P133 1The county board of education shall review the petition pursuant
2to subdivision (b). If the petitioner elects to submit a petition for
3establishment of a charter school to the county board of education
4and the county board of education denies the petition, the petitioner
5may file a petition for establishment of a charter school with the
6state
board, and the state board may approve the petition, in
7accordance with subdivision (b). A charter school that receives
8approval of its petition from a county board of education or from
9the state board on appeal shall be subject to the same requirements
10concerning geographic location to which it would otherwise be
11subject if it received approval from the entity to which it originally
12submitted its petition. A charter petition that is submitted to either
13a county board of education or to the state board shall meet all
14otherwise applicable petition requirements, including the
15identification of the proposed site or sites where the charter school
16will operate.
17(2) In assuming its role as a chartering agency, the state board
18shall develop criteria to be used for the review and approval of
19charter school petitions presented to the state board. The criteria
20shall address all elements required for charter approval, as
21identified in subdivisionbegin delete (b)end deletebegin insert
(b),end insert and shall define “reasonably
22comprehensive” as used in paragraph (5) of subdivision (b) in a
23way that is consistent with the intent of this part. Upon satisfactory
24completion of the criteria, the state board shall adopt the criteria
25on or before June 30, 2001.
26(3) A charter school for which a charter is granted by either the
27county board of education or the state board based on an appeal
28pursuant to this subdivision shall qualify fully as a charter school
29for all funding and other purposes of this part.
30(4) If either the county board of education or the state board
31fails to act on a petition within 120 days of receipt, the decision
32of the governing board of the school district to deny a petition
33begin delete shall, thereafter,end deletebegin insert
shallend insert be subject to judicial review.
34(5) The state board shall adopt regulations implementing this
35subdivision.
36(6) Upon the approval of the petition by the county board of
37education, the petitioner or petitioners shall provide written notice
38of that approval, including a copy of the petition to the department
39and the state board.
P134 1(k) (1) The state board may, by mutual agreement, designate
2its supervisorial and oversight responsibilities for a charter school
3approved by the state board to any local educational agency in the
4county in which the charter school is located or to the governing
5board of the school district that first denied the petition.
6(2) The designated local educational agency
shall have all
7monitoring and supervising authority of a chartering agency,
8including, but not limited to, powers and duties set forth in Section
947607, except the power of revocation, which shall remain with
10the state board.
11(3) A charter school that is granted its charter through an appeal
12to the state board and elects to seek renewal of its charter shall,
13before expiration of the charter, submit its petition for renewal to
14the governing board of the school district that initially denied the
15charter. If the governing board of the school district denies the
16begin insert charterend insert school’s petition for renewal, the school may petition the
17state board for renewal of its charter.
18(l) Teachers in charter schools shall hold a Commission on
19Teacher Credentialing certificate, permit, or
other document
20equivalent to that which a teacher in other public schools would
21be required to hold. These documents shall be maintained on file
22at the charter school and are subject to periodic inspection by the
23chartering authority. It is the intent of the Legislature that charter
24schools be given flexibility with regard to noncore, noncollege
25preparatory courses.
26(m) A charter school shall transmit a copy of its annual,
27independent financial audit report for the preceding fiscal year, as
28described in subparagraph (I) of paragraph (5) of subdivision (b),
29to its chartering entity, the Controller, the county superintendent
30of schools of the county in which the charter school is sited, unless
31the county board of education of the county in which the charter
32school is sited is the chartering entity, and the department by
33December 15 of each year. This subdivision does not apply if the
34audit of the charter school is encompassed in the audit of the
35
chartering entity pursuant to Section 41020.
Section 47605.1 of the Education Code is amended
37to read:
(a) (1) Notwithstanding any other law, a charter
39school that is granted a charter from the governing board of a
40school district or county office of education after July 1, 2002, and
P135 1commences providing educational services to pupils on or after
2July 1, 2002, shall locate in accordance with the geographic and
3site limitations of this part.
4(2) Notwithstanding any other law, a charter school that is
5granted a charter by the state board after July 1, 2002, and
6commences providing educational services to pupils on or after
7July 1, 2002, based on the denial of a petition by the governing
8board of a school district or county board of education, as described
9in paragraphs (1) and (2) of subdivision (j) of Section 47605, may
10locate only within the
geographic boundaries of the chartering
11entity that initially denied the petition for the charter.
12(3) A charter school that receives approval of its charter from
13a governing board of a school district, a county office of education,
14or the state board before July 1, 2002, but does not commence
15operations until after January 1, 2003, shall be subject to the
16geographic limitations of the part, in accordance with subdivision
17(e).
18(b) begin deleteNothing in this end deletebegin insertThis end insertsection isbegin insert notend insert intended to affect the
19admission requirements contained in subdivision (d) of Section
2047605.
21(c) Notwithstanding any other law, a charter school may
22establish a resource center, meeting space, or other satellite facility
23located in a county adjacent to that in which the charter school is
24authorized if the following conditions are met:
25(1) The facility is used exclusively for the educational support
26of pupils who are enrolled in nonclassroom-based independent
27study of the charter school.
28(2) The charter school provides its primary educational services
29in, and a majority of the pupils it serves are residents of, the county
30in which thebegin insert charterend insert school is authorized.
31(d) Notwithstanding subdivision (a) or subdivision (a) of Section
3247605, a
charter school that is unable to locate within the
33geographic boundaries of the chartering school district may
34establish one site outside the boundaries of the school district, but
35within the county within which that school district is located, if
36the school districtbegin delete whereend deletebegin insert in whichend insert the charter school proposes to
37operate is notified in advance of the charter petition approval, the
38county superintendent of schools is notified of the location of the
39charter school before it commences operations, and either of the
40following circumstances exist:
P136 1(1) The school has attempted to locate a single site or facility
2to house the entire programbegin insert,end insert but such a
facility or site is unavailable
3in the area in which the school chooses to locate.
4(2) The site is needed for temporary use during a construction
5or expansion project.
6(e) (1) For a charter school that was granted approval of its
7charter before July 1, 2002, and provided educational services to
8pupils before July 1, 2002, this sectionbegin delete shallend delete onlybegin delete applyend deletebegin insert appliesend insert to
9begin delete anyend delete new educational services or schoolsites established or acquired
10by the charter school on or after July 1, 2002.
11(2) For a charter school that was granted approval of its charter
12before July 1, 2002, but did not provide educational services to
13pupils before July 1, 2002, this sectionbegin delete shallend delete onlybegin delete applyend deletebegin insert appliesend insert
14 upon the expiration of a charter that is in existence on January 1,
152003.
16(3) Notwithstanding other implementation timelines in this
17section, by June 30, 2005, or upon the expiration of a charter that
18is in existence on January 1, 2003, whichever is later, all charter
19schools shall be required to comply with this section for schoolsites
20at which education services are provided to pupils before or after
21July 1, 2002,
regardless of whether the charter school initially
22received approval of its charter school petition before July 1, 2002.
23To achieve compliance with this section, a charter school shall be
24required to receive approval of a charter petition in accordance
25with this section and Section 47605.
26(4) begin deleteNothing in this end deletebegin insertThis end insertsection isbegin insert notend insert intended to affect the
27authority of a governmental entity to revoke a charter that is
28granted on or before the effective date of this section.
29(f) A charter school that submits its petition directly to a county
30board of education, as authorized by Sections
47605.5 or 47605.6,
31may establish charter school operations only within the
32geographical boundaries of the county in which that county board
33of education has jurisdiction.
34(g) Notwithstanding any other law, the jurisdictional limitations
35set forth in this section do not apply to a charter school that
36provides instruction exclusively in partnership with any of the
37following:
38(1) The federal Workforce Investment Act of 1998 (29 U.S.C.
39Sec. 2801 et seq.).
40(2) Federally affiliated Youth Build programs.
P137 1(3) Federal job corps training or instruction provided pursuant
2to a memorandum of understanding with the federal provider.
3(4) The California Conservation Corps or local conservation
4corps
certified by the California Conservation Corps pursuant to
5Sections 14507.5 or 14406 of the Public Resources Code.
6(5) Instruction provided to juvenile court school pupils pursuant
7to subdivision (b) of Section 42238.18 or pursuant to Section 1981
8for individuals who are placed in a residential facility.
Section 47605.6 of the Education Code is amended
10to read:
(a) (1) In addition to the authority provided by
12Section 47605.5, a county board of education may also approve a
13petition for the operation of a charter school that operates at one
14or more sites within the geographic boundaries of the county and
15that provides instructional services that are not generally provided
16by a county office of education. A county board of education may
17approve a countywide charter only if it finds, in addition to the
18other requirements of this section, that the educational services to
19be provided by the charter school will offer services to a pupil
20population that will benefit from those services and that cannot be
21served as well by a charter school that operates in only one school
22district in the county. A petition for the establishment of a
23countywide charter school pursuant to
this subdivision may be
24circulated throughout the county by any one or more persons
25seeking to establish the charter school. The petition may be
26submitted to the county board of education for review after either
27of the following conditions is met:
28(A) The petition is signed by a number of parents or guardians
29of pupils residing within the county that is equivalent to at least
30one-half of the number of pupils that the charter school estimates
31will enroll in the school for its first year of operation and each of
32the school districts where the charter school petitioner proposes
33to operate a facility has received at least 30 days’ notice of the
34petitioner’s intent to operate a school pursuant to this section.
35(B) The petition is signed by a number of teachers that is
36equivalent to at least one-half of the number of teachers that the
37charter school estimates will be employed at the
school during its
38first year of operation and each of the school districts where the
39charter school petitioner proposes to operate a facility has received
P138 1at least 30 days’ notice of the petitioner’s intent to operate a school
2pursuant to this section.
3(2) An existing public schoolbegin delete mayend deletebegin insert shallend insert not be converted to a
4charter school in accordance with this section.
5(3) After receiving approval of its petition, a charter school that
6proposes to establish operations at additional sites within the
7geographic boundaries of the county board of education shall notify
8the school districts where those sites will be located. The charter
9school shall also request a material revision of its charter by the
10
county board of education that approved its charter and the county
11board of education shall consider whether to approve those
12additional locations at an open, public meeting, held no sooner
13than 30 days following notification of the school districts where
14the sites will be located. If approved, the location of the approved
15sites shall be a material revision of the school’s approved charter.
16(4) A petition shall include a prominent statement indicating
17that a signature on the petition means that the parent or guardian
18is meaningfully interested in having his or her child or ward attend
19the charter school, or in the case of a teacher’s signature, means
20that the teacher is meaningfully interested in teaching at the charter
21school. The proposed charter shall be attached to the petition.
22(b) No later than 60 days after receiving a petition, in accordance
23with subdivision (a), the
county board of education shall hold a
24public hearing on the provisions of the charter, at which time the
25county board of education shall consider the level of support for
26the petition by teachers, parents or guardians, and the school
27districts where the charter school petitioner proposes to place
28school facilities. Following review of the petition and the public
29hearing, the county board of education shall either grant or deny
30the charter within 90 days of receipt of the petition. However, this
31date may be extended by an additional 30 days if both parties agree
32to the extension. A county board of education may impose any
33additional requirements beyond those required by this section that
34it considers necessary for the sound operation of a countywide
35charter school. A county board of education may grant a charter
36for the operation of a school under this part only ifbegin delete the boardend deletebegin insert
itend insert is
37satisfied that granting the charter is consistent with sound
38educational practice and that the charter school has reasonable
39justification for why it could not be established by petition to a
40school district pursuant to Section 47605. The county board of
P139 1education shall deny a petition for the establishment of a charter
2school ifbegin delete the boardend deletebegin insert
itend insert finds one or more of the following:
3(1) The charter school presents an unsound educational program
4for the pupils to be enrolled in the charter school.
5(2) The petitioners are demonstrably unlikely to successfully
6implement the program set forth in the petition.
7(3) The petition does not contain the number of signatures
8required by subdivision (a).
9(4) The petition does not contain an affirmation of each of the
10conditions described in subdivision (d).
11(5) The petition does not contain reasonably comprehensive
12descriptions of all of the following:
13(A) (i) begin deleteA description of the end deletebegin insertThe
end inserteducational program of the
14begin insert
charterend insert school, designed, among other things, to identify those
15pupils whom thebegin insert charterend insert school is attempting to educate, what it
16means to be an “educated person” in the 21st century, and how
17learning best occurs. The goals identified in that program shall
18include the objective of enabling pupils to become self-motivated,
19competent, and lifelong learners.
20(ii) begin deleteA description, end deletebegin insertThe annual goals end insertfor the charterbegin delete school, of begin insert schoolend insert
for all pupils and for each subgroup of pupils
21annual goals,end delete
22identified pursuant to Section 52052, to be achieved in the state
23priorities, as described in subdivision (d) of Section 52060, that
24apply for the grade levels served, or the nature of the program
25operated, by the charter school, and specific annual actions to
26achieve those goals. A charter petition may identify additional
27school priorities, the goals for the school priorities, and the specific
28annual actions to achieve those goals.
29(iii) If the proposed charter school will enroll high school pupils,
30begin delete a description ofend delete the manner in which the charter school will inform
31parents regarding the transferability of courses to other public high
32schools. Courses offered by the charter school that are accredited
33by the Western Association of Schools and Colleges may be
34considered to be transferable to other
public high schools.
35(iv) If the proposed charter school will enroll high school pupils,
36information as to the manner in which the charter school will
37inform parents as to whether each individual course offered by the
38charter school meets college entrance requirements. Courses
39approved by the University of California or the California State
40University as satisfying their prerequisites for admission may be
P140 1considered as meeting college entrance requirements for purposes
2of this clause.
3(B) The measurable pupil outcomes identified for use by the
4charter school. “Pupil outcomes,” for purposes of this part, means
5the extent to which all pupils of the school demonstrate that they
6have attained the skills, knowledge, and aptitudes specified as
7goals in the school’s educational program. Pupil outcomes shall
8include outcomes that address increases in pupil academic
9achievement both
schoolwide and for all groups of pupils served
10by the charter school, as that term is defined in subparagraph (B)
11of paragraph (3) of subdivision (a) of Section 47607. The pupil
12outcomes shall align with the state priorities, as described in
13subdivision (d) of Section 52060, that apply for the grade levels
14served, or the nature of the program operated, by the charter school.
15(C) The method by which pupil progress in meeting those pupil
16outcomes is to be measured. To the extent practicable, the method
17for measuring pupil outcomes for state priorities shall be consistent
18with the way information is reported on a school accountability
19report card.
20(D) The location of each charter school facility that the petitioner
21proposes to operate.
22(E) The governance structure of thebegin insert
charterend insert school, including,
23but not limited to, the process to be followed by thebegin insert charterend insert school
24to ensure parental involvement.
25(F) The qualifications to be met by individuals to be employed
26by thebegin insert charterend insert school.
27(G) The procedures that thebegin insert charterend insert school will follow to ensure
28the health and safety of pupils and staff. These procedures shall
29include the requirement that each employee of thebegin insert charterend insert school
30furnishbegin delete the schoolend deletebegin insert
itend insert with a criminal record summary as described
31in Section 44237.
32(H) The means by which thebegin insert
charterend insert school will achieve a racial
33and ethnic balance among its pupils that is reflective of the general
34population residing within the territorial jurisdiction of the school
35district to which the charter petition is submitted.
36(I) The manner in which annual, independent, financial audits
37shall be conducted, in accordance with regulations established by
38the state board, and the manner in which audit exceptions and
39deficiencies shall be resolved.
P141 1(J) The procedures by which pupils can be suspended or
2expelled.
3(K) The manner by which staff members of the charterbegin delete schoolsend delete
4begin insert schoolend insert will be
covered by the State Teachers’ Retirement System,
5the Public Employees’ Retirement System, or federal social
6security.
7(L) The procedures to be followed by the charter school and the
8county board of education to resolve disputes relating to provisions
9of the charter.
10(M) A declaration whether or not the charter school shall be
11deemed the exclusive public school employer of the employees of
12the charter school for purposes of the Educational Employment
13Relations Act (Chapter 10.7 (commencing with Section 3540) of
14Division 4 of Title 1 of the Government Code).
15(N)
end delete16begin insert(M)end insert Admission requirements of the charter school, if applicable.
17(O)
end delete
18begin insert(N)end insert The public school attendance alternatives for pupils residing
19within the county who choose not to attend the charter school.
20(P) A description of the
end delete
21begin insert(O)end insertbegin insert end insertbegin insertTheend insert
rights of an employee of the county office of education,
22upon leaving the employment of the county office of education,
23to be employed by the charter school, andbegin delete a description ofend delete any
24rights of return to the county office of education that an employee
25may have upon leaving the employ of the charter school.
26(Q) A description of the
end delete
27begin insert(P)end insertbegin insert end insertbegin insertTheend insert
procedures to be used if the charter school closes. The
28procedures shall ensure a final audit of the school to determine the
29disposition of all assets and liabilities of the charter school,
30including plans for disposing of any net assets and for the
31maintenance and transfer of public records.
32(6) A declaration of whether or not the charter school shall be
33deemed the exclusive public school employer of the employees of
34the charter school for purposes of the Educational Employment
35Relations Act (Chapter 10.7 (commencing with Section 3540) of
36Division 4 of Title 1 of the Government Code).
37(6)
end delete
38begin insert(7)end insert Any other basis that the county board of education finds
39justifies the denial of the petition.
P142 1(c) A county board of education that approves a petition for the
2operation of a countywide charter may, as a condition of charter
3approval, enter into an agreement with a third party, at the expense
4of the charter school, to oversee, monitor, and report to the county
5board of education on the operations of the charter school. The
6county board of education may prescribe the aspects of the charter
7school’s operations to be monitored by the third party and may
8prescribe appropriate requirements regarding the reporting of
9information concerning the operations of the charter school to the
10county board of education.
11(d) (1) Charter schools shall meet all statewide standards and
12conduct the pupil assessments required pursuant to Section 60605
13and any other
statewide standards authorized in statute or pupil
14assessments applicable to pupils in noncharter public schools.
15(2) Charter schools shall on a regular basis consult with their
16parents and teachers regarding thebegin insert charterend insert school’s educational
17programs.
18(e) (1) In addition to any other requirement imposed under this
19part, a charter school shall be nonsectarian in its programs,
20admission policies, employment practices, and all other operations,
21shall not charge tuition, and shall not discriminate against any
22pupil on the basis of ethnicity, national origin, gender, gender
23identity, gender expression, or disability. Except as provided in
24paragraph (2), admission to a charter school shall not be determined
25according to the place of residence of the pupil, or
of his or her
26parent or guardian, within this state.
27(2) (A) A charter school shall admit all pupils who wish to
28attend thebegin insert charterend insert school.
29(B) If the number of pupils who wish to attend the charter school
30exceeds the school’s capacity, attendance, except for existing pupils
31of the charter school, shall be determined by a public random
32drawing. Preference shall be extended to pupils currently attending
33the charter school and pupils who reside in the county except as
34provided for in Section 47614.5. Other preferences may be
35permitted by the chartering authority on an individual school basis
36and only if consistent with the law.
37(C) In the event of a drawing, the county board of education
38
shall make reasonable efforts to accommodate the growth of the
39charter school and in no event shall take any action to impede the
40charter school from expanding enrollment to meet pupil demand.
P143 1(f) The county board of education shall not requirebegin delete anyend deletebegin insert anend insert
2 employee of the county or a school district to be employed in a
3charter school.
4(g) The county board of education shall not requirebegin delete anyend deletebegin insert aend insert pupil
5enrolled in a county program to attend a charter school.
6(h) The county board of education shall require that the
7petitioner or petitioners provide information regarding the proposed
8operation and potential effects of thebegin insert charterend insert school, including,
9but not limited to, the facilities to be used by thebegin insert
charterend insert school,
10the manner in which administrative services of thebegin insert charterend insert school
11are to be provided, and potential civil liability effects, if any, upon
12thebegin insert charterend insert school, any school district where the charter school
13may operate, and upon the county board of education. The
14petitioner or petitioners shall also be required to provide financial
15statements that include a proposed first-year operational budget,
16including startup costs, and cashflow and financial projections for
17the first three years of operation.
18(i) In reviewing petitions for the establishment of charter schools
19within the county, the county board of education shall give
20preference to petitions that demonstrate the capability to
provide
21comprehensive learning experiences to pupils identified by the
22petitioner or petitioners as academically low achieving pursuant
23to the standards established by the department under Section 54032,
24asbegin delete itend deletebegin insert that sectionend insert read before July 19, 2006.
25(j) Upon the approval of the petition by the county board of
26education, the petitioner or petitioners shall provide written notice
27of that approval, including a copy of the petition, to the school
28districts within the county, the Superintendent, and to the state
29board.
30(k) If a county board of education denies a petition, the petitioner
31may not elect to submit the petition for the establishment of the
32charter school to the state board.
33(l) Teachers in charter schools shall be required to hold a
34Commission on Teacher Credentialing certificate, permit, or other
35document equivalent to that which a teacher in other public schools
36would be required to hold. These documents shall be maintained
37on file at the charter school and shall be subject to periodic
38inspection by the chartering authority.
39(m) A charter school shall transmit a copy of its annual,
40independent, financial audit report for the preceding fiscal year,
P144 1as described in subparagraph (I) of paragraph (5) of subdivision
2(b), to the county office of education, the Controller, and the
3department by December 15 of each year. This subdivisionbegin delete shallend delete
4begin insert doesend insert not apply if the audit
of the charter school is encompassed in
5the audit of the chartering entity pursuant to Section 41020.
Section 47614.5 of the Education Code is amended
7to read:
(a) The Charter School Facility Grant Program is
9hereby established, and shall be administered by the California
10School Finance Authority. The grant program is intended to provide
11assistance with facilities rent and lease costs for pupils in charter
12schools.
13(b) Subject to the annual Budget Act, eligible charter schools
14shall receive an amount of up to, but not more than, seven hundred
15fifty dollars ($750) per unit of average daily attendance, as certified
16at the second principal apportionment, to provide an amount of up
17to, but not more than, 75 percent of the annual facilities rent and
18lease costs for the charter school. In any fiscal year, if the funds
19appropriated for purposes of this section by the annual Budget Act
20are insufficient to fully fund the approvedbegin delete amountsend delete
amounts, the
21California School Finance Authority shall apportion the available
22funds on a pro rata basis.
23(c) For purposes of this section, the California School Finance
24Authority shall do all of the following:
25(1) Inform charter schools of the grant program.
26(2) Upon application by a charter school, determine eligibility,
27based on the geographic location of the charter schoolsite, pupil
28eligibility for free or reduced-price meals, and a preference in
29admissions, as appropriate. Eligibility for funding shall not be
30limited to the grade level or levels served by the school whose
31attendance area is used to determine eligibility. A charter schoolsite
32is eligible for funding pursuant to this section if the charter
33schoolsite meetsbegin delete eitherend deletebegin insert
anyend insert
of the following conditions:
34(A) The charter schoolsite is physically located in the attendance
35area of a public elementary school in which 70 percent or more of
36the pupil enrollment is eligible for free or reduced-price meals and
37the charter schoolsite gives a preference in admissions to pupils
38who are currently enrolled in that public elementary school and to
39pupils who reside in the elementary school attendance area where
40the charter schoolsite is located.
P145 1(B) Seventy percent or more of the pupil enrollment at the
2charter schoolsite is eligible for free or reduced-price meals.
3(C) In any year in which additional funds remain after state and
4federal funds have been allocated to applicants that meet the
5eligibility criteria in subparagraph (A) or (B), the California School
6Finance Authority shall
expand eligibility to additional charter
7schools that are eligible pursuant to subparagraph (B) by reducing
8the free and reduced-price meals thresholdbegin delete oneend deletebegin insert 1end insert percentage point
9at a time, but in no case below 60 percent.
10(3) Inform charter schools of their grant eligibility.
11(4) Make apportionments to a charter school for eligible
12expenditures according to the following schedule:
13(A) An initial apportionment by August 31 of each fiscal year
14or 30 days after enactment of the annual Budget Act, whichever
15is later, provided the charter school has submitted a timely
16application for funding, as determined by the California School
17
Finance Authority. The initial apportionment shall be 50 percent
18of the charter school’s estimated annual entitlement as determined
19by this section.
20(B) A second apportionment by March 1 of each fiscal year.
21This apportionment shall be 75 percent of the charter school’s
22estimated annual entitlement, as adjusted for any revisions in cost,
23enrollment, and other data relevant to computing the charter
24school’s annual entitlement, less any funding already apportioned
25to the charter school.
26(C) A third apportionment within 30 days of the end of each
27fiscal year or 30 days after receiving the data and documentation
28needed to compute the charter school’s total annual entitlement,
29whichever is later. This apportionment shall be the charter school’s
30total annual entitlement less any funding already apportioned to
31the charter school.
32(D) Notwithstanding subparagraph (A), the initial apportionment
33in the 2013-14 fiscal year shall be made by October 15, 2013, or
34105 days after enactment of the Budget Act of 2013, whichever is
35later.
36(d) For purposes of this section:
37(1) The California School Finance Authority shall use prior year
38data on pupil eligibility for free or reduced-price meals for the
39charter schoolsite and prior year rent or lease costs provided by
40charter schools to determine eligibility for the grant program until
P146 1current year data and actual rent or lease costs become known or
2until June 30 of each fiscal year.
3(2) If prior year rent or lease costs are unavailable, and the
4current year lease and rent costs are not immediately available,
5the California School Finance Authority shall use rent or lease
6cost estimates
provided by the charter school.
7(3) The California School Finance Authority shall verify that
8the grant amount awarded to each charter school is consistent with
9eligibility requirements as specified in this section and in
10regulations adopted by the authority. If it is determined by the
11California School Finance Authority that a charter school did not
12receive the proper grant award amount, either the charter school
13shall transfer funds back to the authority as necessary within 60
14days of being notified by the authority, or the authority shall
15provide an additional apportionment as necessary to the charter
16school within 60 days of notifying the charter school, subject to
17the availability of funds.
18(e) Funds appropriated for purposes of this section shall not be
19apportioned for any of the following:
20(1) Units of average
daily attendance generated through
21nonclassroom-based instruction as defined by paragraph (2) of
22subdivision (e) of Section 47612.5 or that does not comply with
23conditions or limitations set forth in regulations adopted by the
24begin delete state boardend deletebegin insert California School Finance Authorityend insert pursuant to this
25section.
26(2) Charter schools occupying existing school district or county
27office of education facilities, except that charter schools shall be
28eligible for the portions of their facilities that are not existing
29school district or county office of education facilities.
30(3) Charter schools receiving reasonably equivalent facilities
31from their chartering authorities pursuant to Section 47614, except
32that
charter schools shall be eligible for the portions of their
33facilities that are not reasonably equivalent facilities received from
34their chartering authorities.
35(f) Funds appropriated for purposes of this section shall be used
36for costs associated with facilities rents and leases, consistent with
37the definitions used in the California School Accounting Manual
38or regulations adopted by the California School Finance Authority.
39These funds also may be used for costs, including, but not limited
40to, costs associated with remodeling buildings, deferred
P147 1maintenance, initially installing or extending service systems and
2other built-in equipment, and improving sites.
3(g) If an existing charter school located in an elementary
4attendance area in which less than 50 percent of pupil enrollment
5is eligible for free or reduced-price meals relocates to an attendance
6area identified in paragraph
(2) of subdivision (c), admissions
7preference shall be given to pupils who reside in the elementary
8school attendance area into which the charter school is relocating.
9(h) The California School Finance Authority annually shall
10report to the department and the Director of Finance, and post
11information on its Internet Web site, regarding the use of funds
12that have been made available during the fiscal year to each charter
13school pursuant to the grant program.
14(i) The California School Finance Authoritybegin delete shallend delete annuallybegin insert shallend insert
15 allocate the facilities grants to eligible charter schools according
16to the schedule in paragraph (4) of subdivision (c) for the current
17school year rent and lease costs.
However, the California School
18Finance Authority shall first use the funding appropriated for this
19program to reimburse eligible charter schools for unreimbursed
20rent or lease costs for the prior school year.
21(j) It is the intent of the Legislature that the funding level for
22the Charter School Facility Grant Program for the 2012-13 fiscal
23year be considered the base level of funding for subsequent fiscal
24years.
25(k) The Controller shall include instructions appropriate to the
26enforcement of this section in the audit guide required by
27subdivision (a) of Section 14502.1.
28(l) The California School Finance Authority, effective with the
292013-14 fiscal year, shall be considered the senior creditor for
30purposes of satisfying audit findings pursuant to the audit
31instructions to be developed pursuant to subdivision (k).
32(m) The California School Finance Authority may adopt
33regulations to implement this section. Any regulations adopted
34pursuant to this section may be adopted as emergency regulations
35in accordance with the Administrative Procedure Act (Chapter 3.5
36(commencing with Section 11340) of Part 1 of Division 3 of the
37Title 2 of the Government Code). The adoption of these regulations
38shall be deemed to be an emergency and necessary for the
39immediate preservation of the public peace, health and safety, or
40general welfare.
P148 1(n) Notwithstanding any other law, a charter school shall be
2subject, with regard to this section, to audit conducted pursuant to
3Section 41020.
Section 47651 of the Education Code is amended to
5read:
(a) A charter school may receive the state aid portion
7of the charter school’s total local control funding formula allocation
8pursuant to Section 42238.02, as implemented by Section 42238.03,
9directly or through the local educational agency that either grants
10its charter or was designated by the state board.
11(1) In the case of a charter school that elects to receive its
12funding directly, the warrant shall be drawn in favor of the county
13superintendent of schools of the county in which the local
14educational agency that granted thebegin delete charterend deletebegin insert charter,end insert or was
15designated by the state
board as the oversight agency pursuant to
16paragraph (1) of subdivision (k) of Sectionbegin delete 47605end deletebegin insert 47605,end insert is located,
17for deposit to the appropriate funds or accounts of the charter
18school in the county treasury. The county superintendent of schools
19is authorized to establish appropriate funds or accounts in the
20county treasury for each charter school.
21(2) In the case of a charter school that does not elect to receive
22its funding directly pursuant to this section, the warrant shall be
23drawn in favor of the county superintendent of schools of the
24county in which the local educational agency that granted the
25charter is located or was designated the oversight agency by the
26state board pursuant to paragraph (1) of subdivision (k) of Section
2747605, for deposit to the
appropriate funds or accounts of the local
28educational agency.
29(3) In the case of a charter school, the charter of which was
30granted by the state board, but for which the state board has not
31delegated oversight responsibilities pursuant to paragraph (1) of
32subdivision (k) of Section 47605, the warrant shall be drawn in
33favor of the county superintendent of schools in the county where
34the local educational agency is located that initially denied the
35charter that was later granted by the state board. The county
36superintendent of schools is authorized to establish appropriate
37funds or accounts in the county treasury for each charter school.
38(b) On or before June 1 of each year, a charter school electing
39to receive its funding directly shall so notify the county
40superintendent of schools of the county in which the local
P149 1educational agency that granted the charter is located or, in the
2
case of charters for which the state board has designated an
3oversight agency pursuant to paragraph (1) of subdivision (k) of
4Section 47605, the county superintendent of schools of the county
5in which the designated oversight agency is located. An election
6to receive funding directlybegin delete shall applyend deletebegin insert appliesend insert to all funding that
7the charter school is eligible to receive including, but not limited
8to, the local control funding formula allocation pursuant to Section
942238.02, as implemented by Section 42238.03, other state and
10federal categorical aid, and lottery funds.
Section 48003 of the Education Code is amended to
12read:
Commencing with the 2015-16 school year, a local
14educational agency shall provide an annual report to thebegin delete State begin insert departmentend insert that contains information on
15Department of Educationend delete
16the type of kindergarten program offered by the local educational
17agency, including part-day, full-day, or both, in a manner
18determined by the department.
Section 48297 of the Education Code is amended
20to read:
(a) (1) A state or local agency conducting a
22truancy-related mediation or prosecuting a pupil or a pupil’s parent
23or legal guardian pursuant to Article 5 (commencing with Section
2448260), this article, Section 48454, Section 270.1 or 272 of the
25Penal Code, or Section 601 of the Welfare and Institutions Code,
26as applicable, shall provide, using the most cost-effective method
27possible, including, but not limited to, bybegin delete electronic mailend deletebegin insert emailend insert or
28telephone, the school district, school attendance review board,
29county superintendent of schools, probation department, or any
30other agency that referred a truancy-related mediation,
criminal
31complaint, or petition with the outcome of each referral. For
32purposes of this section, “outcome” means the imposed conditions
33or terms placed on a pupil or a pupil’s parent or legal guardian and
34the acts or actions taken by a state or localbegin delete authorityend deletebegin insert agencyend insert with
35respect to a truancy-related mediation, prosecution, criminal
36complaint, or petition.
37(2) This subdivisionbegin delete shall applyend deletebegin insert appliesend insert to, but is not limited to,
38the referrals referenced in Article 5 (commencing with Section
3948260), this article, Section 48454, Sections 270.1 and 272 of the
P150 1Penal Code, and
Sections 601, 601.2, and 601.3 of the Welfare
2and Institutions Code.
3(b) It is the intent of the Legislature to determine the best
4evidence-based practices to reduce truancy.begin delete Nothing in thisend deletebegin insert Thisend insert
5 section isbegin insert notend insert intended to encourage additional referrals,
6complaints, petitions, or prosecutions, or to encourage more serious
7sanctions for pupils.
Section 48321 of the Education Code is amended
9to read:
(a) (1) A county school attendance review board may
11be established in each county. The county school attendance review
12board may accept referrals or requests for hearing services from
13one or more school districts within itsbegin delete jurisdiction,end deletebegin insert jurisdictionend insert
14 pursuant to subdivision (f). A county school attendance review
15board may be operated through a consortium or partnership of a
16county with one or more school districts or between two or more
17counties.
18(2) A county school attendance review board, if established,
19shall include, but need not be limited to, all of
the following:
20(A) A parent.
21(B) A representative of school districts.
22(C) A representative of the county probation department.
23(D) A representative of the county welfare department.
24(E) A representative of the county superintendent of schools.
25(F) A representative of law enforcement agencies.
26(G) A representative of community-based youth service centers.
27(H) A representative of school guidance personnel.
28(I) A representative of child welfare and attendance personnel.
29(J) A representative of school or county health care personnel.
30(K) A representative of school, county, or community mental
31health personnel.
32(L) A representative of the county district attorney’s office. If
33more than one county is represented in a county school attendance
34review board, a representative from each county’s district attorney’s
35office may be included.
36(M) A representative of the county public defender’s office. If
37more than one county is represented in a county school attendance
38review board, a representative from each county’s public defender’s
39office may be included.
P151 1(3) Notwithstanding paragraph (2), for purposes of conducting
2hearings,
the chairperson of the county school attendance review
3board is authorized to determine the members needed at a hearing,
4based on the needs of the pupil, in order to address attendance or
5behavioral problems.
6(4) The school district representatives on the county school
7attendance review board shall be nominated by the governing
8boards of school districts and shall be appointed by the county
9superintendent of schools. All other persons and group
10representatives shall be appointed by the county board of education.
11(5) (A) If a county school attendance review board exists, the
12county superintendent of schools shall, at the beginning of each
13school year, convene a meeting of the county school attendance
14review board for purposes of adopting plans to promote interagency
15and community cooperation and to reduce the duplication of
16services provided to youth who have
serious school attendance
17and behavior problems.
18(B) Notwithstanding subparagraph (A), for purposes of
19conducting hearings, a county school attendance review board may
20meet as needed.
21(b) (1) Local school attendance review boards may include,
22but need not be limited to, all of the following:
23(A) A parent.
24(B) A representative of school districts.
25(C) A representative of the county probation department.
26(D) A representative of the county welfare department.
27(E) A representative of the county superintendent of schools.
28(F) A representative of law enforcement agencies.
29(G) A representative of community-based youth service centers.
30(H) A representative of school guidance personnel.
31(I) A representative of child welfare and attendance personnel.
32(J) A representative of school or county health care personnel.
33(K) A representative of school, county, or community mental
34health personnel.
35(L) A representative of the county district attorney’s office. If
36more than one county is represented in a local school attendance
37review board, a representative from each county’s district attorney’s
38
office may be included.
39(M) A representative of the county public defender’s office. If
40more than one county is represented in a county school attendance
P152 1review board, a representative from each county’s public defender’s
2office may be included.
3(2) Other persons or group representatives shall be appointed
4by the county board of education.
5(c) A county school attendance review board may elect, pursuant
6to regulations adopted pursuant to Section 48324, one member as
7chairperson with responsibility for coordinating services of the
8county school attendance review board.
9(d) A county school attendance review board may provide for
10the establishment of local school attendance review boards in any
11number as shall be necessary to carry out the intent of this
article.
12(e) In any county in which there is no county school attendance
13review boardbegin delete, a school districtend deletebegin insert
theend insert governing boardbegin insert of a school
14districtend insert may elect to establish a local school attendance review
15board, which shall operate in the same manner and have the same
16authority as a county school attendance review board.
17(f) A county school attendance review board may provide
18guidance to local school attendance review boards.
19(g) If the county school attendance review board determines
20that the needs of pupils, as defined in this article, can best be served
21by a single board, the county school attendance review board may
22then serve as the school attendance review board for all pupils in
23the county, or, upon the request of any school district in the county,
24the county school attendance review board may serve as the school
25attendance review
board for pupils of that school district.
26(h) begin deleteNothing in this end deletebegin insertThis end insertarticle isbegin insert notend insert intended to prohibit an
27agreement on the part of counties to provide these services on a
28regional basis.
The heading of Article 2 (commencing with Section
3048810) of Chapter 5 of Part 27 of Division 4 of Title 2 of the 31Education Code is repealed.
32
Section 48900.9 of the Education Code is amended
36to read:
(a) The superintendent of a school district, the
38principal of a school, or the principal’s designee may refer a victim
39of, witness to, or other pupil affected by, an act of bullying, as
40defined in paragraph (1) of subdivision (r) of Section 48900,
P153 1committed on or after January 1, 2015, to the school counselor,
2school psychologist, social worker, child welfare attendance
3personnel, school nurse, or other school support service personnel
4for case management, counseling, and participation in a restorative
5justice program, as appropriate.
6(b) Abegin delete studentend deletebegin insert pupilend insert who has engaged in an
act of bullying, as
7defined in paragraph (1) of subdivision (r) of Section 48900, may
8 also be referred to the school counselor, school psychologist, social
9worker, child welfare attendance personnel, or other school support
10service personnel for case management and counseling, or for
11participation in a restorative justice program, pursuant to Section
1248900.5.
Section 49452.9 of the Education Code is amended
14to read:
(a) For purposes of the 2015-16, 2016-17, and
162017-18 school years, a public school, including a charter school,
17shall add an informational item to its enrollment forms, or amend
18an existing enrollmentbegin delete formend deletebegin insert form,end insert in order to provide the parent
19or legal guardian information about health care coverage options
20and enrollment assistance.
21(b) To satisfy the requirements of subdivision (a), a school may
22do either of the following:
23(1) Use a template developed pursuant to subdivision (d).
24(2) Develop an informational item or amend an existing
25enrollment form to provide information about health care coverage
26options and enrollment assistance.
27(c) A school may include a factsheet with its enrollment forms
28explaining basic information about affordable health care coverage
29options for children and families.
30(d) (1) Thebegin delete State Department of Educationend deletebegin insert departmentend insert shall
31develop a standardized template for both of the following:
32(A) The informational item or amendment required by
33subdivision (a).
34(B) The factsheet described in subdivision (c).
35(2) The department shall make any templates developed pursuant
36to this subdivision available on its Internet Web site on or before
37August 1, 2015, and shall, upon request, provide written copies of
38the template to a school district.
39(e) A school district shall not discriminate against a pupil who
40does not have health care coverage or use any information relating
P154 1to a pupil’s health care coverage or interest in learning about health
2care coverage in any manner that would bring harm to the pupil
3or the pupil’s family.
4(f) This section shall remain in effect only until January 1, 2019,
5and as of that date is repealed, unless a later enacted statute, that
6is enacted before January 1, 2019, deletes or
extends that date.
Section 51747.3 of the Education Code, as amended
8by Section 1 of Chapter 807 of the Statutes of 2014, is amended
9to read:
(a) Notwithstanding any other law, a local educational
11agency, including, but not limited to, a charter school,begin delete mayend deletebegin insert shallend insert
12 not claim state funding for the independent study of a pupil,
13whether characterized as home study or otherwise, if the local
14educational agency has provided any funds or other thing of value
15to the pupil or his or her parent or guardian that the local
16educational agency does not provide to pupils who attend regular
17classes or to their parents or guardians. A charter schoolbegin delete mayend deletebegin insert
shallend insert
18 not claim state funding for the independent study of a pupil,
19whether characterized as home study or otherwise, if the charter
20school has provided any funds or other thing of value to the pupil
21or his or her parent or guardian that a school district could not
22legally provide to a similarly situated pupil of the schoolbegin delete district,end delete
23begin insert districtend insert or to his or her parent or guardian.
24(b) (1) Notwithstanding paragraph (1) of subdivision (d) of
25Section 47605 or any other law, and except as specified in
26paragraph (2), community school and independent study average
27daily attendance shall be claimed by school districts, county
28superintendents of schools, and charter schools only for pupils
29who are
residents of the county in which the apportionment claim
30is reported, or who are residents of a county immediately adjacent
31to the county in which the apportionment claim is reported.
32(2) In addition to claiming independent study average daily
33attendance pursuant to paragraph (1), a virtual or online charter
34school may also claim independent study average daily attendance
35for a pupil who is enrolled in the school and moves to a residence
36located outside of thebegin delete geographicalend deletebegin insert
geographicend insert boundaries of the
37virtual or online charter school. The virtual or online charter school
38may claim independent study average daily attendance for the
39pupil under this paragraph only for the duration of the course or
P155 1courses in which the pupil is enrolled or until the end of the school
2year, whichever occurs first.
3(c) The Superintendent shall not apportion funds for reported
4average daily attendance, through full-time independent study, of
5pupils who are enrolled in school pursuant to subdivision (b) of
6Section 48204.
7(d) In conformity with Provisions 25 and 28 of Item
86110-101-001 of Section 2.00 of the Budget Act of 1992, this
9section is applicable to average daily attendance reported for
10apportionment purposes beginning July 1, 1992. The provisions
11of this section are not subject to waiver by the state board, by the
12
Superintendent, or under any provision of Part 26.8 (commencing
13with Section 47600).
14(e) For purposes of this section, “virtual or online charter school”
15means a charter school in which at least 80 percent of teaching
16and pupil interaction occurs via the Internet.
17(f) This section shall remain in effect only until January 1, 2018,
18and as of that date is repealed, unless a later enacted statute, that
19is enacted before January 1, 2018, deletes or extends that date.
Section 52064.5 of the Education Code is amended
21to read:
(a) On or before October 1, 2015, the state board
23shall adopt evaluation rubrics for all of the following purposes:
24(1) To assist a school district, county office of education, or
25charter school in evaluating its strengths, weaknesses, and areas
26that require improvement.
27(2) To assist a county superintendent of schools in identifying
28school districts and charter schools in need of technical assistance
29pursuant to Section 52071 or 47607.3, as applicable, and the
30specific priorities upon which the technical assistance should be
31focused.
32(3) To assist the Superintendent in identifying school districts
33for which intervention pursuant to
Section 52072 is warranted.
34(b) The evaluation rubrics shall reflect a holistic,
35multidimensional assessment of school district and individual
36schoolsite performance and shall include all of the state priorities
37described in subdivision (d) of Section 52060.
38(c) As part of the evaluation rubrics, the state board shall adopt
39standards for school district and individual schoolsite performance
P156 1andbegin delete expectationend deletebegin insert expectationsend insert for improvement in regard to each
2of the state priorities described in subdivision (d) of Section 52060.
Section 52852 of the Education Code is amended
4to read:
begin insert(a)end insertbegin insert end insert A schoolsite council shall be established at each
6schoolbegin delete whichend deletebegin insert thatend insert participates in school-based program
7coordination. Thebegin insert schoolsiteend insert council shall be composed of the
8principal and representatives of: teachers selected by teachers at
9the school; other school personnel selected by
other school
10personnel at the school; parents of pupils attending the school
11selected bybegin delete suchend deletebegin insert theend insert parents; and, in secondary schools, pupils
12selected by pupils attending the school.
13At
end delete
14begin insert(b)end insertbegin insert end insertbegin insert(1)end insertbegin insert end insertbegin insertAtend insert the elementarybegin delete level theend deletebegin insert
level, the schoolsiteend insert
council
15shall be constituted to ensure parity betweenbegin delete (a)end deletebegin insert
(A)end insert the principal,
16classroombegin delete teachersend deletebegin insert teachers,end insert and other school personnel; andbegin delete (b)end delete
17begin insert (B)end insert parents or other community members selected by parents.
18At
end delete
19begin insert(2)end insertbegin insert end insertbegin insertAtend insert the secondarybegin delete level theend deletebegin insert
level, the schoolsiteend insert council shall
20be constituted to ensure parity betweenbegin delete (a)end deletebegin insert (A)end insert the principal,
21classroombegin delete teachersend deletebegin insert teachers,end insert and other school personnel; andbegin delete (b)end delete
22begin insert (B) anend insert equalbegin delete numbersend deletebegin insert numberend insert of parents, or other
community
23members selected by parents, and pupils.
24At
end delete
25begin insert(3)end insertbegin insert end insertbegin insertAtend insert both the elementary and secondary levels, classroom
26teachers shall comprise the majority of persons represented under
27begin delete category (a).end deletebegin insert subparagraph (A) of paragraphs (1) and (2).end insert
28Existing
end delete
29begin insert(c)end insertbegin insert end insertbegin insertExistingend insert
schoolwide advisory groups or school support
30groups may be utilized as the schoolsite council if those groups
31conform to this section.
32The Superintendent of Public Instruction shall
end delete
33begin insert(d)end insertbegin insert end insertbegin insertThe Superintendentend insert shall provide several examples of
34selection and replacement procedures that may be considered by
35schoolsite councils.
36An
end delete
37begin insert(e)end insertbegin insert end insertbegin insertAnend insert employee of a school who is also a parent or guardian
38of a pupil who attends a school other than the school of the parent’s
39or guardian’sbegin delete employment,end deletebegin insert employmentend insert is not disqualified by virtue
40of this employment from serving as a parent representative on the
P157 1schoolsite council established for the school that his or her child
2or ward attends.
The heading of Chapter 14 (commencing with
4Section 52980) of Part 28 of Division 4 of Title 2 of the Education
5Code is repealed.
6
The heading of Article 8 (commencing with Section
1154750) of Chapter 9 of Part 29 of Division 4 of Title 2 of the 12Education Code is repealed.
13
The heading of Chapter 8.5 (commencing with
17Section 56867) of Part 30 of Division 4 of Title 2 of the Education
18Code is repealed.
19
The heading of Article 7 (commencing with Section
2366080) of Chapter 2 of Part 40 of Division 5 of Title 3 of the 24Education Code, as added by Section 2 of Chapter 200 of the
25Statutes of 1995, is amended and renumbered to
read:
26
Section 66261.5 of the Education Code, as added
30by Section 38 of Chapter 569 of the Statutes of 2007, is amended
31and renumbered to read:
“Nationality” includes citizenship, country of origin,
34and national origin.
Section 66281.7 of the Education Code is amended
36to read:
(a) It is the policy of the State of California, pursuant
38to Section 66251, that all persons, regardless of their sex, should
39enjoy freedom from discrimination of any kind, including, but not
40limited to, pregnancy discrimination as described in Title IX of
P158 1the Education Amendments of 1972 (20 U.S.C. Sec. 1681, et seq.),
2in the postsecondary educational institutions of the state.
3(b) Each of the following requirementsbegin delete shall be applicableend deletebegin insert applyend insert
4 to postsecondary educational institutions in this state:
5(1) A
postsecondary educational institution, including the
6faculty, staff, or other employees of the institution, shall not require
7a graduate student to take a leave of absence, withdraw from the
8graduate program, or limit his or her graduate studies solely due
9to pregnancy or pregnancy-related issues.
10(2) A postsecondary educational institution, including the
11faculty, staff, or other employees of the institution, shall reasonably
12accommodate pregnant graduate students so they may complete
13their graduate courses of study and research. Reasonable
14accommodation within the meaning of this subdivision may
15include, but is not necessarily limited to, allowances for the
16pregnant student’s health and safety, such as allowing the student
17to maintain a safe distance from hazardous substances, allowing
18the student to make up tests and assignments that are missed for
19pregnancy-related reasons, or allowingbegin delete aend deletebegin insert
theend insert student to take a leave
20of absence. Reasonable accommodation shall include the excusing
21of absences that are medically necessary, as required under Title
22IX.
23(3) A graduate student who chooses to take a leave of absence
24because she is pregnant or has recently given birth shall be allowed
25a period consistent with the policies of the postsecondary
26educational institution, or a period of 12 additional months,
27whichever period is longer, to prepare for and take preliminary
28and qualifying examinations and an extension of at least 12 months
29toward normative time to degree while in candidacy for a graduate
30degree, unless a longer extension is medically necessary.
31(4) A graduate student who is not the birth parent and who
32chooses to take a leave of absence because of the birth of his or
33her child shall be allowed a period consistent with the
policies of
34the postsecondary educational institution, or a period of one month,
35whichever period is longer, to prepare for and take preliminary
36and qualifying examinations, and an extension of at least one month
37toward normative time to degree while in candidacy for a graduate
38degree, unless a longer period or extension is medically necessary
39to care for his or her partner or their child.
P159 1(5) An enrolled graduate student in good academic standing
2who chooses to take a leave of absence because she is pregnant or
3has recently given birth shall return to her program in good
4academic standing following a leave period consistent with the
5policies of the postsecondary educational institution or of up to
6one academic year, whichever period is longer, subject to the
7reasonable administrative requirements of the institution, unless
8there is a medical reason for a longer absence, in which case her
9standing in the graduate program shall be maintained
during that
10period of absence.
11(6) An enrolled graduate student in good academic standing
12who is not the birth parent and who chooses to take a leave of
13absence because of the birth of his or her child shall return to his
14or her program in good academic standing following a leave period
15consistent with the policies of the postsecondary educational
16institution, or of up to one month, whichever period is longer,
17subject to the reasonable administrative requirements of the
18institution.
19(c) Each postsecondary educational institution shall have a
20written policy for graduate students on pregnancy discrimination
21and procedures for addressing pregnancy discrimination complaints
22under Title IX or this section. A copy of this policy shall be made
23available to faculty, staff, and employees in their required training.
24This policy shall be made available to all graduate students
25attending
orientation sessions at a postsecondary educational
26institution.
Section 67386 of the Education Code is amended
28to read:
(a) In order to receive state funds for student financial
30assistance, the governing board of each community college district,
31the Trustees of the California State University, the Regents of the
32University of California, and the governing boards of independent
33postsecondary institutions shall adopt a policy concerning sexual
34assault, domestic violence, dating violence, and stalking, as defined
35in the federal Higher Education Act of 1965 (20 U.S.C. Sec.
36begin delete 1092(f))end deletebegin insert 1092(f)),end insert involving a student, both on and off campus.
37The policy shall include all of the following:
38(1) An
affirmative consent standard in the determination of
39whether consent was given by both parties to sexual activity.
40“Affirmative consent” means affirmative, conscious, and voluntary
P160 1agreement to engage in sexual activity. It is the responsibility of
2each person involved in the sexual activity to ensure that he or she
3has the affirmative consent of the other or others to engage in the
4sexual activity. Lack of protest or resistance does not mean consent,
5nor does silence mean consent. Affirmative consent must be
6ongoing throughout a sexual activity and can be revoked at any
7time. The existence of a dating relationship between the persons
8involved, or the fact of past sexual relations between them, should
9never by itself be assumed to be an indicator of consent.
10(2) A policy that, in the evaluation of complaints in any
11disciplinary process, it shall not be a valid excuse to alleged lack
12of affirmative consent that the accused believed that the
13
complainant consented to the sexual activity under either of the
14following circumstances:
15(A) The accused’s belief in affirmative consent arose from the
16intoxication or recklessness of the accused.
17(B) The accused did not take reasonable steps, in the
18circumstances known to the accused at the time, to ascertain
19whether the complainant affirmatively consented.
20(3) A policy that the standard used in determining whether the
21elements of the complaint against the accused have been
22demonstrated is the preponderance of the evidence.
23(4) A policy that, in the evaluation of complaints in the
24disciplinary process, it shall not be a valid excuse that the accused
25believed that the complainant affirmatively consented to the sexual
26activity if the accused knew or
reasonably should have known that
27the complainant was unable to consent to the sexual activity under
28any of the following circumstances:
29(A) The complainant was asleep or unconscious.
30(B) The complainant was incapacitated due to the influence of
31drugs, alcohol, or medication, so that the complainant could not
32understand the fact, nature, or extent of the sexual activity.
33(C) The complainant was unable to communicate due to a mental
34or physical condition.
35(b) In order to receive state funds for student financial assistance,
36the governing board of each community college district, the
37Trustees of the California State University, the Regents of the
38University of California, and the governing boards of independent
39postsecondary institutions shall adopt
detailed and victim-centered
40policies and protocols regarding sexual assault, domestic violence,
P161 1dating violence, and stalking involving a student that comport with
2best practices and current professional standards. At a minimum,
3the policies and protocols shall cover all of the following:
4(1) A policy statement on how the institution will provide
5appropriate protections for the privacy of individuals involved,
6including confidentiality.
7(2) Initial response by the institution’s personnel to a report of
8an incident, including requirements specific to assisting the victim,
9providing information in writing about the importance of preserving
10evidence, and the identification and location of witnesses.
11(3) Response to stranger and nonstranger sexual assault.
12(4) The preliminary victim interview, including the development
13of a victim interview protocol, and a comprehensive followup
14victim interview, as appropriate.
15(5) Contacting and interviewing the accused.
16(6) Seeking the identification and location of witnesses.
17(7) Providing written notification to the victim about the
18availability of, and contact information for, on- and off-campus
19resources and services, and coordination with law enforcement,
20as appropriate.
21(8) Participation of victim advocates and other supporting
22people.
23(9) Investigating allegations that alcohol or drugs were involved
24in the incident.
25(10) Providing that an individual who participates as a
26complainant or witness in an investigation of sexual assault,
27domestic violence, dating violence, or stalking will not be subject
28to disciplinary sanctions for a violation of the institution’s student
29conduct policy at or near the time of the incident, unless the
30institution determines that the violation was egregious, including,
31but not limited to, an action that places the health or safety of any
32other person at risk or involves plagiarism, cheating, or academic
33dishonesty.
34(11) The role of the institutional staff supervision.
35(12) A comprehensive, trauma-informed training program for
36campus officials involved in investigating and adjudicating sexual
37assault, domestic violence, dating violence, and stalking cases.
38(13) Procedures for confidential
reporting by victims and third
39parties.
P162 1(c) In order to receive state funds for student financial assistance,
2the governing board of each community college district, the
3Trustees of the California State University, the Regents of the
4University of California, and the governing boards of independent
5postsecondary institutions shall, to the extent feasible, enter into
6memoranda of understanding, agreements, or collaborative
7partnerships with existing on-campus and community-based
8organizations, including rape crisis centers, to refer students for
9assistance or make services available to students, including
10counseling, health, mental health, victim advocacy, and legal
11assistance, and including resources for the accused.
12(d) In order to receive state funds for student financial assistance,
13the governing board of each community college district, the
14Trustees of the California State
University, the Regents of the
15University of California, and the governing boards of independent
16postsecondary institutions shall implement comprehensive
17prevention and outreach programs addressing sexual violence,
18domestic violence, dating violence, and stalking. A comprehensive
19prevention program shall include a range of prevention strategies,
20including, but not limited to, empowerment programming for
21victim prevention, awareness raising campaigns, primary
22prevention, bystander intervention, and risk reduction. Outreach
23programs shall be provided to make students aware of the
24institution’s policy on sexual assault, domestic violence, dating
25violence, and stalking. At a minimum, an outreach program shall
26include a process for contacting and informing the student body,
27campus organizations, athletic programs, and student groups about
28the institution’s overall sexual assault policy, the practical
29implications of an affirmative consent standard, and the rights and
30responsibilities of students under the
policy.
31(e) Outreach programming shall be included as part of every
32incoming student’s orientation.
The heading of Article 7 (commencing with Section
3468090) of Chapter 1 of Part 41 of Division 5 of Title 3 of the 35Education Code is repealed.
36
Section 69437 of the Education Code is amended
40to read:
(a) Commencing with the 2001-02 academic year, and
2each academic year thereafter, there shall be established the
3Competitive Cal Grant A and B award program for students who
4did not receive a Cal Grant A or B entitlement award pursuant to
5Article 2 (commencing with Section 69434), Article 3
6(commencing with Section 69435), or Article 4 (commencing with
7Section 69436). Awards made under this section are not
8entitlements. The submission of an application by a student under
9this sectionbegin delete shallend deletebegin insert doesend insert not entitle that student to an award. The
10selection of students under this article shall be determined
pursuant
11to subdivision (c) and other relevant criteria established by the
12commission.
13(b) A total of 22,500 Cal Grant A and B awards shall be granted
14annually under this article on a competitive basis for applicants
15who meet the general eligibility criteria established in Article 1
16(commencing with Section 69430) and the priorities established
17by the commission pursuant to subdivision (c).
18(1) Fifty percent of the awards referenced in this subdivision
19are available to all students, including California community
20college students, who meet the financial need and academic
21requirements established pursuant to this article. A student
22enrolling at a qualifying baccalaureate degree granting institution
23shall apply by the March 2 deadline. A California community
24college student is eligible to apply at the March 2 or the September
252 deadline.
26(2) Fifty percent of the awards referenced in this subdivision
27are reserved for students who will be enrolled at a California
28community college. The commission shall establish a second
29application deadline of September 2 for community college
30students to apply for these awards effective with the fall term or
31semester of the 2001-02 academic year.
32(3) If any awards are not distributed pursuant to paragraphs (1)
33and (2) upon initial allocation of the awards under this article, the
34commission shall make awards to as many eligible students as
35possible, beginning with the students with the lowest expected
36family contribution and highest academic merit, consistent with
37the criteria adopted by the commission pursuant to subdivision
38(c), as practicable without exceeding an annual cumulative total
39of 22,500 awards.
P164 1(c) (1) On or before February 1, 2001, acting pursuant to a
2public hearing process that is consistent with the Bagley-Keene
3Open Meeting Act (Article 9 (commencing with Section 11120)
4of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government
5Code), the commission shall establish selection criteria for Cal
6Grant A and B awards under the competitive program that give
7special consideration to disadvantaged students, taking into
8consideration those financial, educational, cultural, language,
9home, community, environmental, and other conditions that hamper
10a student’s access to, and ability to persist in, postsecondary
11education programs.
12(2) Additional consideration shall be given tobegin delete eachend deletebegin insert bothend insert of the
13following:
14(A) Students who graduated from high school or its equivalent
15prior to the 2000-01 academic year. This subparagraph shall not
16be applicable after the 2004-05 academic year.
17(B)
end delete
18begin insert(A)end insert Students pursuing Cal Grant B awards who reestablish their
19grade point averages.
20(C)
end delete
21begin insert(B)end insert Students who did not receive awards pursuant to Article 2
22(commencing with Section 69434), Article 3 (commencing with
23Section 69435), or Article 4 (commencing with Section 69436).
24(d) All other students who meet the eligibility requirements
25pursuant to Article 1 (commencing with Section 69430) are eligible
26to compete for an award pursuant to this
article.
Section 70022 of the Education Code is amended
28to read:
(a) (1) Subject to an available and sufficient
30appropriation, commencing with the 2014-15 academic year, an
31undergraduate student enrolled in the California State University
32or the University of California who meets the requirements of
33paragraph (2) is eligible for a scholarship award as described in
34that paragraph.
35(2) Each academic year, except as provided in paragraphs (3)
36and (4), a student shall receive a scholarship award in an amount
37that, combined with other federal, state, or institutionally
38administered student grants or fee waivers received by an eligible
39student, is up to 40 percent of the amount charged to that student
P165 1in that academic year for mandatory systemwide tuition and fees,
2if all of the following requirements are met:
3(A) The student’s annual household income does not exceed
4one hundred fifty thousand dollars ($150,000). For purposes of
5this article, annual household income shall be calculated in a
6manner that is consistent with the requirements applicable to the
7Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program
8(Chapter 1.7 (commencing with Section 69430)) and Section
969506.
10(B) The student satisfies the eligibility requirements for a Cal
11Grant award pursuant to Section 69433.9, except that a student
12who is exempt from nonresident tuition under Section 68130.5
13shall not be required to satisfy the requirements of subdivision (a)
14of Section 69433.9.
15(C) The student is exempt from paying nonresident tuition.
16(D) The student completes and submits a Free Application
for
17Federal Student Aid (FAFSA) application. The FAFSA must be
18submitted or postmarked by no later than March 2. If the student
19is not able to complete a FAFSA application, the student may
20satisfy this subparagraph by submitting an application determined
21by the commission to be equivalent to the FAFSA application for
22purposes of this article by March 2.
23(E) The student makes a timely application or applications for
24all other federal, state, or institutionally administered grants or fee
25waivers for which the student is eligible.
26(F) The student maintains satisfactory academic progress in a
27manner that is consistent with the requirements applicable to the
28Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program
29pursuant to subdivision (m) of Section 69432.7.
30(G) The student is pursuing his or her first undergraduate
31
baccalaureate degree or has completed a baccalaureate degree and
32has been admitted to, and is enrolled in, a program of professional
33teacher preparation at an institution approved by the California
34Commission on Teacher Credentialing.
35(H) The student is enrolled at least part time.
36(3) (A) The percentage specified in paragraph (2) shall be
37reduced by 0.6-percent increments per one thousand dollars
38($1,000) of annual household income in excess of one hundred
39thousand dollars ($100,000), to a minimum 10 percent of
40mandatory systemwide tuition and fees for an academic year,
P166 1provided that no scholarship award shall be provided to a student
2with an annual household income exceeding one hundred fifty
3thousand dollars ($150,000). This reduction shall be in addition
4to any reduction required by subdivision (e) of Section 70023.
5(B) Notwithstanding subparagraph (A), for any student who
6qualifies for a scholarship award of at least one dollar ($1), the
7minimum annual scholarship amount for full-time enrollment is
8ninety dollars ($90).
9(4) For the 2014-15, 2015-16, and 2016-17 academic years,
10the maximum amount of a student’s scholarship award shall be 35
11percent, 50 percent, and 75 percent, respectively, of the total
12scholarship award amount that the student would otherwise be
13eligible to receive.
14(b) In order for students enrolled in their respective segments
15to remain eligible to receive a scholarship award under this article,
16the University of California and the California State University
17shall not supplant their respective institutional need-based grants
18with the funds provided for scholarships under this article, and
19shall maintain their
funding amounts at a level that, at a minimum,
20is equal to the level maintained for undergraduate students during
21the 2013-14 academic year.
22(c) The University of California and the California State
23University shall report on the implementation of this article as part
24of the report made pursuant to Section 66021.1.
25(d) A Middle Class Scholarship Program award authorized
26pursuant to this article shall be defined as a full-time equivalent
27grant. An award to a part-time student shall be a fraction of a
28full-time grant, as determined by the proportionate amount charged
29for systemwide tuition and fees. A part-time student shall not be
30discriminated against in the selection of Middle Class Scholarship
31Program awards. For purposes of this section,begin delete “full-time student” begin insert
“full-time” and “part-timeend insertbegin insert”end insert have the same
32and “part-time student”end delete
33meaning as specified in subdivision (f) of Section 69432.7.
Section 70037 of the Education Code is amended
35to read:
(a) The Trustees of the California State University and
37the Regents of the University of California shall adopt regulations
38providing for the withholding of institutional services frombegin delete studentsend delete
39begin insert a studentend insert or formerbegin delete studentsend deletebegin insert studentend insert whobegin delete haveend deletebegin insert hasend insert been notified
40in
writing at the student’s or former student’s last known address
P167 1that he or she is in default on a loan or loans under the DREAM
2Program.
3(b) (1) The regulations adopted pursuant to subdivision (a) shall
4provide that the services withheld may be provided during a period
5when the facts are in dispute or when the student or former student
6demonstrates to either the Trustees of the California State
7University or the Regents of the University of California, as
8applicable, that reasonable progress has been made to repay the
9loan or that there exists a reasonable justification for the delay as
10determined by the institution. The regulations shall specify the
11services to be withheld from the student, which may include, but
12are not limited to, the following:
13(A) The provision of grades.
14(B) The provision of transcripts.
15(C) The provision of diplomas.
16(2) The services withheld pursuant to paragraph (1) shall not
17include the withholding of registration privileges.
18(c) “Default,” for purposes of this section, means the failure of
19a borrower to make an installment payment when due, or to meet
20other terms of the promissory note under circumstancesbegin delete whereend deletebegin insert in
21whichend insert the institution holding the loan finds it reasonable to
22conclude that the borrower no longer intends to honor the
23obligation to repay, provided that this failure persists for 180 days
24for a loan repayable in monthly installments, or 240 days for a
25loan repayable in less
frequent installments.
26(d) This sectionbegin delete shallend deletebegin insert doesend insert not impose any requirement upon
27the University of California unless the Regents of the University
28of California, by resolution, makes this section applicable.
The heading of Article 3 (commencing with Section
3072632) of Chapter 6 of Part 45 of Division 7 of Title 3 of the 31Education Code is repealed.
32
Section 76030 of the Education Code is amended
36to read:
(a) Consistent with requirements of due process of law,
38with this article, and with the rules of student conduct adopted by
39the governing board under Section 66300, the governing board,
40the president of a community college or the president’s designee,
P168 1or an instructor shall suspend a student for good cause. In addition,
2the governing board is authorized to expel a student for good cause
3when other means of correction fail to bring about proper conduct,
4or when the presence of the student causes a continuing danger to
5the physical safety of the student or others. The suspension or
6expulsion of a student shall be accompanied by a hearing conducted
7pursuant to the requirements of Section 66017.
8(b) (1) Notwithstanding any other law, ifbegin delete good cause for the
an
9issuance ofend deletebegin delete order,end deletebegin insert orderend insert requested by a community college
10begin delete district,end deletebegin insert districtend insert to protect a campus of a community collegebegin delete district,end delete
11begin insert districtend insert or any person regularly present on a campus of thatbegin delete district,end delete
12begin insert districtend insert is issuedbegin insert
upon a finding of good causeend insert by a court against
13a student of that community college district, andbegin insert the orderend insert prevents
14that student from attending classes and maintaining his or her
15academic standing, the community college district may require
16the student to apply for reinstatement after the expiration of that
17order. If the district requires the student to apply for reinstatement,
18it shall do so before the expiration of the protective order. If a
19student applies for reinstatement under this paragraph, a review
20with respect to the application shall be conducted. This review, at
21a minimum, shall include consideration of all of the following
22issues:
23(A) The gravity of the offense.
24(B) Evidence of subsequent offenses, if any.
25(C) The likelihood that the student would cause substantial
26disruption if he or she is reinstated.
27(2) The governing board of the community college district, or
28the person to whom authority is delegated pursuant to subdivision
29(f) of Section 76038, shall take one of the following actions after
30conducting a review under paragraph (1):
31(A) Deny reinstatement.
32(B) Permit reinstatement.
33(C) Permit conditionalbegin delete reinstatement,end deletebegin insert reinstatementend insert and specify
34the conditions under which reinstatement will be
permitted.
Section 78261.5 of the Education Code is amended
36to read:
(a) A community college registered nursing program
38that determines that the number of applicants to that program
39exceeds its capacity may admit students in accordance with any
40of the following procedures:
P169 1(1) Administration of a multicriteria screening process, as
2authorized by Section 78261.3, in a manner that is consistent with
3the standards set forth in subdivision (b).
4(2) A random selection process.
5(3) A blended combination of random selection and a
6multicriteria screening process.
7(b) A community college registered nursing program that elects,
8on or after January 1,
2008, to use a multicriteria screening process
9to evaluate applicants pursuant to this article shall apply those
10measures in accordance with all of the following:
11(1) The criteria applied in a multicriteria screening process under
12this article shall include, but shall not necessarily be limited to, all
13of the following:
14(A) Academic degrees or diplomas, or relevant certificates, held
15by an applicant.
16(B) Grade-point average in relevant coursework.
17(C) Any relevant work or volunteer experience.
18(D) Life experiences or special circumstances of an applicant,
19including, but not necessarily limited to, the following experiences
20or circumstances:
21(i) Disabilities.
22(ii) Low family income.
23(iii) First generation of family to attend college.
24(iv) Need to work.
25(v) Disadvantaged social or educational environment.
26(vi) Difficult personal and family situations or circumstances.
27(vii) Refugee or veteran status.
28(E) Proficiency or advanced level coursework in languages other
29than English. Credit for languages other than English shall be
30received for languages that are identified by the chancellor as
31high-frequency languages, as based on census data.
These
32languages may include, but are not necessarily limited to, any of
33the following:
34(i) American Sign Language.
35(ii) Arabic.
36(iii) Chinese, including its various dialects.
37(iv) Farsi.
38(v) Russian.
39(vi) Spanish.
40(vii) Tagalog.
P170 1(viii) The various languages of the Indian subcontinent and
2Southeast Asia.
3(2) Additional criteria, such as a personal interview, a personal
4statement, letter of recommendation, or the number of repetitions
5
of prerequisite classes, or other criteria, as approved by the
6chancellor, may be used, but are not required.
7(3) A community college registered nursing program using a
8multicriteria screening process under this article may use an
9approved diagnostic assessment tool, in accordance with Section
1078261.3, before, during, or after the multicriteria screening process.
11(4) As used in this section:
12(A) “Disabilities” has the same meaning as used in Section 2626
13of the Unemployment Insurance Code.
14(B) “Disadvantaged social or educational environment” includes,
15but is not necessarily limited to, the status of a student who has
16participated in Extended Opportunity Programs and Services
17(EOPS).
18(C) “Grade-point average” refers to the same fixed set of
19required prerequisite courses that all applicants to the nursing
20program administering the multicriteria screening process are
21required to complete.
22(D) “Low family income” shall be measured by a community
23college registered nursing program in terms of a student’s eligibility
24for, or receipt of, financial aid under a program that may include,
25but is not necessarily limited to, a fee waiver from the board of
26governors under Section 76300, the Cal Grant Program under
27Chapter 1.7 (commencing with Section 69430) of Part 42 of
28Division 5, the federal Pell Grant program, or CalWORKs.
29(E) “Need to work” means that the student is working at least
30part time while completing academic work that is a prerequisite
31for admission to the nursing program.
32(5) A
community college registered nursing program that uses
33a multicriteria screening process pursuant to this article shall report
34its nursing program admissions policies to the chancellor annually,
35in writing. The admissions policies reported under this paragraph
36shall include the weight given to any criteria used by the program,
37and shall include demographic information relating to both the
38persons admitted to the program and the persons of that group who
39successfully completed that program.
P171 1(c) The chancellor is encouraged to develop, and make available
2to community college registered nursing programs by July 1, 2008,
3a model admissions process based on this section.
4(d) (1) The chancellor shall submit a report on or before March
51, 2015, and on or before each March 1 thereafter, to the
6Legislature and the Governor that examines and includes, but is
7not
necessarily limited to, both of the following:
8(A) The participation, retention, and completion rates in
9community college registered nursing programs of students
10admitted through a multicriteria screening process, as described
11inbegin delete Section 78261.5,end deletebegin insert
this section,end insert disaggregated by the age, gender,
12ethnicity, and the language spoken at the home of those students.
13(B) Information on the annual impact, if any, the
14Seymour-Campbell Student Success Act had on the matriculation
15services for students admitted through the multicriteria screening
16process, as described inbegin delete Section 78261.5.end deletebegin insert this section.end insert
17(2) The chancellor shall submit the annual report required in
18paragraph (1) in conjunction with its annual report on associate
19degree nursing programs required by subdivision (h) of Section
2078261.
21(e) This section shall remain in
effect only until January 1, 2020,
22and as of that date is repealed, unless a later enacted statute, that
23is enacted before January 1, 2020, deletes or extends that date.
The heading of Article 8 (commencing with Section
2578310) of Chapter 2 of Part 48 of Division 7 of Title 3 of the 26Education Code is repealed.
27
The heading of Article 3 (commencing with Section
3178440) of Chapter 3 of Part 48 of Division 7 of Title 3 of the 32Education Code is repealed.
33
The heading of Chapter 4 (commencing with Section
3778600) of Part 48 of Division 7 of Title 3 of the Education Code
38 is repealed.
39
The heading of Article 4 (commencing with Section
282360) of Chapter 7 of Part 49 of Division 7 of Title 3 of the 3Education Code is repealed.
4
Section 82542 of the Education Code, as amended
8by Section 1 of Chapter 233 of the Statutes of 2014, is amended
9to read:
(a) Except as provided in subdivision (b), the governing
11board of a community college district shall grant without charge
12the use of any college facilities or grounds under its control,
13pursuant to the requirements of this article, when an alternative
14location is not available, to nonprofit organizations and clubs and
15associations organized for general character building or welfare
16purposes, such as:
17(1) Student clubs and organizations.
18(2) Fundraising entertainments or meetings where admission
19fees charged or contributions solicited are expended for the welfare
20of the students of the district.
21(3) Parent-teachers’ associations.
22(4) School-community advisory councils.
23(5) Camp Fire Girls, Girl Scout troops, and Boy Scout troops.
24(6) Senior citizens’ organizations.
25(7) Other public agencies.
26(8) Organizations, clubs, or associations organized for cultural
27activities and general character building or welfare purposes, such
28as folk and square dancing.
29(9) Groups organized for the purpose specified in subdivision
30(k).
31(b) The governing board may charge those organizations and
32activities listed in subdivision (a) an amount not to exceed the
33following:
34(1) The cost of opening and closing the facilities, if no college
35employees would otherwise be available to perform that function
36as a part of their normal duties.
37(2) The cost of a college employee’s presence during the
38organization’s use of the facilities, if the governing board
39determines that the supervision is needed, and if that employee
40would not otherwise be present as part of his or her normal duties.
P173 1(3) The cost of janitorial services, if the services are necessary,
2and would not have otherwise been performed as part of the
3janitor’s normal duties.
4(4) The cost of utilities directly attributable to the organization’s
5use of the facilities.
6(c) The governing board may charge an amount
not to exceed
7its direct costs or not to exceed fair rental value of college facilities
8and grounds under its control, and pursuant to the requirements of
9this article, for activities other than those specified in subdivision
10(a). A governing board that decides to levy these charges shall first
11adopt a policy specifying which activities shall be charged an
12amount not to exceed direct costs and which activities shall be
13charged an amount not to exceed fair rental value.
14(d) (1) As used in this section, “direct costs” to the district for
15the use of college facilities or grounds includes all of the following:
16(A) The share of the costs of supplies, utilities, janitorial
17services, services of any other district employees, and salaries paid
18to community college district employees to operate and maintain
19college facilities or grounds that is proportional to the
20
organization’s use of the college facilities and grounds of the
21district under this section.
22(B) The share of the costs for maintenance, repair, restoration,
23and refurbishment, proportional to the use of the college facilities
24or grounds by the organization using the college facilities or
25grounds under this section. For purposes of this subparagraph,
26“college facilities” shall be limited to only nonclassroom space,
27and “grounds” shall include, but not be limited to, playing fields,
28athletic fields, track and field venues, tennis courts, and outdoor
29basketball courts.
30(2) The share of the costs for maintenance, repair, restoration,
31and refurbishment shall not apply to either of the following:
32(A) Classroom-based programs that operate after school hours,
33including, but not limited to, after school programs, tutoring
34
programs, or child care programs.
35(B) Organizations retained by the college or community college
36district to provide instruction or instructional activities to students
37during school hours.
38(3) Funds collected pursuant to this subdivision shall be
39deposited into a special fund that shall only be used for purposes
40of this section.
P174 1(e) By December 31, 2015, the Chancellor of the California
2Community Colleges shall develop, and the Board of Governors
3of the California Community Colleges shall adopt, regulations to
4be used by a governing board of a community collegebegin insert districtend insert in
5determining the proportionate share and the specific allowable
6costs that a community college district may include as direct costs
7for the
use of its college facilities or grounds.
8(f) As used in this section, “fair rental value” means the direct
9costs to the district, plus the amortized costs of the college facilities
10or grounds used for the duration of the activity authorized.
11(g) The governing board of a community college district that
12authorizes the use of college facilities or grounds for the purpose
13specified in subdivision (h) shall charge the church or religious
14denomination an amount at least equal to the fair rental value of
15the facilities or grounds.
16(h) The governing board of a community college district may
17grant the use of college facilities or grounds to any church or
18religious organization for the conduct of religious services for
19temporary periods where the church or organization has no suitable
20meeting place for the conduct of these
services upon the terms and
21conditions as the board deems proper, and subject to the limitations,
22requirements, and restrictions set forth in this article. The governing
23board shall charge the church or religious organization using the
24property for the conduct of religious services a fee as specified in
25subdivision (g).
26(i) For entertainment or a meeting where an admission fee is
27charged or a contribution is solicited and the net receipts of the
28admission fees or contributions are not expended for the welfare
29of the students of the district or for charitable purposes, a charge
30equal to fair rental value shall be levied for the use of the college
31facilities, property, and grounds, as determined by the governing
32board of the district.
33(j) The governing board may permit the use, without charge,
34by organizations, clubs, or associations organized for senior citizens
35and for cultural
activities and general character building or welfare
36purposes, when membership dues or contributions solely for the
37support of the organization, club, or association, or the
38advancement of its cultural, characterbegin delete buildingend deletebegin insert building,end insert or welfare
39work, are accepted.
P175 1(k) The governing board of a community college district may
2grant the use of college facilities, grounds, and equipment to public
3agencies, including the American Red Cross, for mass care and
4welfare shelters during disasters or other emergencies affecting
5the public health and welfare, and may cooperate with these
6agencies in furnishing and maintaining services deemed by the
7governing board to be necessary to meet the needs of the
8community.
9(l) This section shall remain in effect only until January 1, 2020,
10and as of that date is repealed, unless a later enacted statute, that
11is enacted before January 1, 2020, deletes or extends that date.
Section 82542 of the Education Code, as added by
13Section 2 of Chapter 233 of the Statutes of 2014, is amended to
14read:
(a) Except as provided in subdivision (b), the governing
16board of a community college district shall grant without charge
17the use of any college facilities or grounds under its control,
18pursuant to the requirements of this article, when an alternative
19location is not available, to nonprofit organizations and clubs and
20associations organized for general character building or welfare
21purposes, such as:
22(1) Student clubs and organizations.
23(2) Fundraising entertainments or meetings where admission
24fees charged or contributions solicited are expended for the welfare
25of the students of the district.
26(3) Parent-teachers’ associations.
27(4) School-community advisory councils.
28(5) Camp Fire Girls, Girl Scout troops, and Boy Scout troops.
29(6) Senior citizens’ organizations.
30(7) Other public agencies.
31(8) Organizations, clubs, or associations organized for cultural
32activities and general character building or welfare purposes, such
33as folk and square dancing.
34(9) Groups organized for the purpose specified in subdivision
35(g).
36(b) The governing board may charge those organizations and
37activities listed in subdivision (a) an amount not to exceed the
38following:
P176 1(1) The cost of opening and closing the facilities, if no college
2employees would otherwise be available to perform that function
3as a part of their normal duties.
4(2) The cost of a college employee’s presence during the
5organization’s use of the facilities, if the governing board
6determines that the supervision is needed, and if that employee
7would not otherwise be present as part of his or her normal duties.
8(3) The cost of janitorial services, if the services are necessary,
9and would not have otherwise been performed as part of the
10janitor’s normal duties.
11(4) The cost of utilities directly attributable to the organization’s
12use of the facilities.
13(c) The governing board may charge an amount
not to exceed
14its direct costs or not to exceed fair rental value of college facilities
15and grounds under its control, and pursuant to the requirements of
16this article, for activities other than those specified in subdivision
17(a). A governing board that decides to levy these charges shall first
18adopt a policy specifying which activities shall be charged an
19amount not to exceed direct costs and which activities shall be
20charged an amount not to exceed fair rental value.
21(1) As used in this section, “direct costs” to the district for the
22use of college facilities or grounds means those costs of supplies,
23utilities, janitorial services, services of any other district employees,
24and salaries paid community college district employees necessitated
25by the organization’s use of the college facilities and grounds of
26the district.
27(2) As used in this section, “fair rental value” means the
direct
28costs to the district, plus the amortized costs of the college facilities
29or grounds used for the duration of the activity authorized.
30(d) The governing board of a community college district that
31authorizes the use of college facilities or grounds for the purpose
32specified in subdivision (e) shall charge the church or religious
33denomination an amount at least equal to the fair rental value of
34the facilities or grounds.
35(e) The governing board of a community college district may
36grant the use of college facilities or grounds to any church or
37religious organization for the conduct of religious services for
38temporary periods where the church or organization has no suitable
39meeting place for the conduct of these services upon the terms and
40conditions as the board deems proper, and subject to the limitations,
P177 1requirements, and restrictions set forth in this article. The
governing
2board shall charge the church or religious organization using the
3property for the conduct of religious services a fee as specified in
4subdivision (d).
5(f) For entertainment or a meeting where an admission fee is
6charged or a contribution is solicited and the net receipts of the
7admission fees or contributions are not expended for the welfare
8of the students of the district or for charitable purposes, a charge
9shall be made for the use of the college facilities, property, and
10grounds, which charge shall not be less than the fair rental value
11for the use of the college facilities, property, and grounds, as
12determined by the governing board of the district.
13(g) The governing board may permit the use, without charge,
14by organizations, clubs, or associations organized for senior citizens
15and for cultural activities and general character building or welfare
16purposes, when
membership dues or contributions solely for the
17support of the organization, club, or association, or the
18advancement of its cultural, characterbegin delete buildingend deletebegin insert building,end insert or welfare
19work, are accepted.
20(h) The governing board of a community college district may
21grant the use of college facilities, grounds, and equipment to public
22agencies, including the American Red Cross, for mass care and
23welfare shelters during disasters or other emergencies affecting
24the public health and welfare, and may cooperate with these
25agencies in furnishing and maintaining services deemed by the
26governing board to be necessary to meet the needs of the
27community.
28(i) This section is operative on and after January 1, 2020.
The heading of Article 1 (commencing with Section
3084300) of Chapter 3 of Part 50 of Division 7 of Title 3 of the 31Education Code is repealed.
32
The heading of Article 2 (commencing with Section
3685210) of Chapter 8 of Part 50 of Division 7 of Title 3 of the 37Education Code is repealed.
38
Section 87782 of the Education Code is amended
2to read:
(a) An academic employee of a community college
4district who has been an employee of that district for a period of
5one school year or more shall have transferred with him or her to
6a second district the total amount of leave of absence for illness
7or injury to which he or she is entitled under Section 87781 in any
8of the following circumstances:
9(1) The person accepts an academic position in a school district
10or community college district at any time during the second or any
11succeeding school year of his or her employment with the first
12district.
13(2) The person, within the three school years succeeding the
14school year in which the employment in the first district is
15terminated, signifies acceptance of
his or her election or
16employment in an academic position in another district.
17(3) The person, prior to the expiration of a period greater than
18three years during which the employee’s reemployment rights are
19in effect under a local bargaining agreement in the first district,
20signifies acceptance of his or her election or employment in an
21academic position in another district.
22(b) The board of governors shall adopt rules and regulations
23prescribing the manner in which the first district shall certify to
24the second district the total amount of leave of absence for illness
25or injury to be transferred. No governing board shall adopt any
26policy or rule, written or unwritten,begin delete whichend deletebegin insert thatend insert requires
any
27employee transferring to its district to waive any part or all of the
28leave of absencebegin delete whichend deletebegin insert
thatend insert he or she may be entitled to have
29transferred in accordance with this section.
Section 87784.5 of the Education Code is amended
31to read:
(a) An academic employee may take up to 30 days
33of leave in a school year, lessbegin delete thanend delete any days of leave authorized
34pursuant to Sections 87781.5 and 87784, in either of the following
35circumstances:
36(1) A biological parent may use leave pursuant to this section
37within the first year of his or her infant’s birth.
38(2) A nonbiological parent may use leave pursuant to this section
39within the first year of legally adopting a child.
P179 1(b) If the provisions of this section are in conflict with the terms
2of a collective bargaining agreement in effect before January
1,
32015, the provisions of this sectionbegin delete shallend deletebegin insert doend insert not apply to the public
4employer and public employees subject to that agreement until the
5expiration or renewal of the agreement.
Section 88207.5 of the Education Code is amended
7to read:
(a) A contract or regular employee may use up to 30
9days of leave in a school year, lessbegin delete thanend delete any days of leave
10authorized pursuant to Section 88207, in either of the following
11circumstances:
12(1) A biological parent may use leave pursuant to this section
13within the first year of his or her infant’s birth.
14(2) A nonbiological parent may use leave pursuant to this section
15within the first year of legally adopting a child.
16(b) If the provisions of this section are in conflict with the terms
17of a collective bargaining agreement in effect before January 1,
18
2015, the provisions of this sectionbegin delete shallend deletebegin insert doend insert not apply to the public
19employer and public employees subject to that agreement until the
20expiration or renewal of the agreement.
Section 89005 of the Education Code is amended
22to read:
All references inbegin delete anyend delete law or regulation to the “California
24State Colleges,” to the “California State University and Colleges,”
25or to “state colleges” shall be deemed to refer to the California
26State University and to the system of institutions of higher
27educationbegin delete whichend deletebegin insert thatend insert comprises the California Statebegin delete Univerityend delete
28begin insert Universityend insert as authorized in Section
89001. The term “campus”
29shall mean any of the institutions included within the California
30State University specified in Section 89001.
Section 89295 of the Education Code is amended
32to read:
(a) For purposes of this section, the following terms
34are defined as follows:
35(1) The “four-year graduation rate” means the percentage of a
36cohort of undergraduate students who entered the university as
37freshmen at any campus and graduated from any campus within
38four years.
39(2) The “six-year graduation rate” means the percentage of a
40cohort of undergraduate students who entered the university as
P180 1freshmen at any campus and graduated from any campus within
2six years.
3(3) The “two-year transfer graduation rate” means the percentage
4of a cohort of undergraduate students who entered the university
5at any campus as junior-level transfer
students from the California
6Community Colleges and graduated from any campus within two
7years.
8(4) The “three-year transfer graduation rate” means the
9percentage of a cohort of undergraduate students who entered the
10universitybegin insert at any campusend insert as junior-level transfer students from the
11California Community Collegesbegin delete at any campusend delete and graduated from
12any campus within three years.
13(5) The “four-year transfer graduation rate” means the
14percentage of a cohort of undergraduate students who entered the
15universitybegin insert at any campusend insert as junior-level transfer students from the
16California Community
Collegesbegin delete at any campusend delete and graduated from
17any campus within four years.
18(6) “Low-income student” means an undergraduate student who
19has an expected family contribution, as defined in subdivision (g)
20of Section 69432.7, at any time during the student’s matriculation
21at the institution that would qualify the student to receive a federal
22Pell Grant. The calculation of a student’s expected family
23contribution shall be based on the Free Application for Federal
24Student Aid (FAFSA) application or an application determined by
25thebegin delete Californiaend delete Student Aid Commission to be equivalent to the
26FAFSA application submitted by that applicant.
27(b) Commencing with the 2013-14 academic year, the California
28State University shall report,
by March 15 of each year, on the
29following performance measures for the preceding academic year,
30to inform budget and policy decisions and promote the effective
31and efficient use of available resources:
32(1) The number of California Community College transfer
33students enrolled and the percentage of California Community
34College transfer students as a proportion of the total number of
35undergraduate students enrolled.
36(2) The number of new California Community College transfer
37students enrolled and the percentage of new California Community
38College transfer students as a proportion of the total number of
39new undergraduate students enrolled.
P181 1(3) The number of low-income students enrolled and the
2percentage of low-income students as a proportion of the total
3number of undergraduate students enrolled.
4(4) The number of new low-income students enrolled and the
5percentage ofbegin insert newend insert low-income students as a proportion of the total
6number of new undergraduate students enrolled.
7(5) The four-year graduation rate for students who entered the
8university four years prior and, separately, for low-income students
9in that cohort.
10(6) The four-year and six-year graduation rates for students who
11entered the university six years prior and, separately, for
12low-income students in that cohort.
13(7) The two-year transfer graduation rate for students who
14entered the university two years prior and, separately, for
15low-income students in that cohort.
16(8) The two-year and three-year transfer graduation rates for
17students who entered the university three years prior and,
18separately, for low-income students in that cohort.
19(9) The two-year, three-year, and four-year transfer graduation
20rates for students who entered the university four years prior and,
21separately, for low-income students in that cohort.
22(10) The number of degree completions annually, in total and
23for the following categories:
24(A) Freshman entrants.
25(B) California Community College transfer students.
26(C) Graduate students.
27(D) Low-income students.
28(11) The percentage of freshman entrants who have earned
29sufficient course credits by the end of their first year of enrollment
30to indicate that they will graduate within four years.
31(12) The percentage of California Community College transfer
32students who have earned sufficient course credits by the end of
33their first year of enrollment to indicate that they will graduate
34within two years.
35(13) For all students, the total amount of funds received from
36all sources identified in subdivision (c) of Section 89290 for the
37year, divided by the number of degrees awarded that same year.
38(14) For undergraduate students, the total amount of funds
39received from all sources identified in subdivision (c) of Section
P182 189290 for the year expended for
undergraduate education, divided
2by the number of undergraduate degrees awarded that same year.
3(15) The average number of California State University course
4credits and the total course credits, including credits accrued at
5other institutions, accumulated by all undergraduate students who
6graduated, and separately for freshman entrants and California
7Community College transfer students.
8(16) (A) The number of degree completions in science,
9technology, engineering, and mathematics (STEM) fields, in total,
10and separately for undergraduate students, graduate students, and
11low-income students.
12(B) For purposes of subparagraph (A), “STEM fields” include,
13but are not necessarily limited to, all of the following: computer
14and information sciences, engineering and engineering
15technologies, biological
and biomedical sciences, mathematics
16and statistics, physical sciences, and science technologies.
17(c) It is the intent of the Legislature that the appropriate policy
18and fiscal committees of the Legislature review these performance
19measures in a collaborative process with the Department of
20Finance, the Legislative Analyst’s Office, individuals with
21expertise in statewide accountability efforts, the University of
22California, the California State University, and, for purposes of
23data integrity and consistency, the California Community Colleges,
24and consider any recommendations for their modification and
25refinement. It is further the intent of the Legislature that any
26modification or refinement of these measures be guided by the
27legislative intent expressed in Section 66010.93.
Section 89500.7 of the Education Code is amended
29to read:
(a) The trustees shall offer, on at least a semiannual
31basis, to each of the university’s filers, an orientation course on
32the relevant ethics statutes and regulations that govern the official
33conduct of university officials.
34(b) As used in this section, “filer” means each member, officer,
35or designated employee of the California State University,
36including a trustee, who, because of his or her affiliation with the
37university or any subdivision or campus thereof, is required to file
38a Statement of Economic Interests in accordance with Chapter 7
39(commencing with Section 87100) of Title 9 of the Government
40Code.
P183 1(c) The trustees shall maintain records indicating
the specific
2attendees, each attendee’s job title, and dates of their attendance
3for each orientation course offered pursuant to this section. These
4records shall be maintained for a period of at least five years after
5each course is offered. These records shall be public records subject
6to inspection and copying in accordance withbegin delete subdivision (a) ofend delete
7 Section 81008 of the Government Code and any other public
8records disclosure laws that are applicable to the university.
9(d) Except as provided in subdivision (e), each filer shall attend
10the orientation course established pursuant to subdivision (a) in
11accordance with both of the following:
12(1) For a person who, as of January 1, 2005, is a filer, as defined
13in subdivision (b), not later than December 31, 2005, and thereafter,
14at least once during each
consecutive period of two calendar years
15commencing on January 1, 2007.
16(2) For a person who becomes a filer, as defined in subdivision
17(b), after January 1, 2005, within six months after he or she
18becomes a filer, and at least once during each consecutive period
19of two calendar years commencing on January 1 of the first
20odd-numbered year thereafter.
21(e) The requirements of subdivision (d)begin delete shallend deletebegin insert doend insert not apply to a
22filer, as defined in subdivision (b), who has taken an ethics
23orientation course through another state agency or the Legislature
24within the periods set forth in paragraphs (1) and (2) of subdivision
25(d) if, in the determination of the trustees, that course covered
26substantially the
same material as the course the university would
27offer to the filer pursuant to this section.
Section 89770 of the Education Code is amended
29to read:
(a) (1) The California State University may pledge,
31in addition to any of its other revenues that the university chooses
32to pledge, its annual General Fund support appropriation less the
33amount of that appropriation required to fund general obligation
34bond payments and State Public Works Board rental payments, to
35secure the payment of debt obligations issued by the Trustees of
36the California State University pursuant to the State University
37Revenue Bond Act of 1947 (Article 2 (commencing with Section
3890010) of Chapter 8).
39(2) To the extent the university pledges any part of its support
40appropriation as a source of revenue securing any obligation, it
P184 1shall provide that this commitment of revenue is subject to annual
2appropriation by the
Legislature.
3(3) The university may fund debt service for capital expenditures
4defined in subdivision (b), and the costs or expenses incidental to
5the issuance and sale of bonds to finance those costs, including,
6but not limited to, capitalized interest on the bonds, from its
7General Fund support appropriation pursuant to Sections 89772
8and 89773.
9(4) The state hereby covenants with the holders of the
10university’s obligations, secured by the pledge of the university
11authorized by this section,begin insert thatend insert so long as any of the obligations
12referred to in this subdivision remain outstanding, the state will
13not impair or restrict the ability of the university to pledge any
14support appropriation or support appropriations that may be enacted
15for the university. The university may
include this covenant of the
16state in the agreements or other documents underlying the
17university’s obligations to this effect.
18(b) For purposes of this section, “capital expenditures” means
19any of the following:
20(1) The costs to acquire real property to design, construct, or
21equip academic facilities to address seismic and life safety needs,
22enrollment growth, or modernization of out-of-date facilities, and
23renewal or expansion of infrastructure to serve academic programs.
24(2) The debt service amount associated with refunding,
25defeasing, or retiring State Public Works Board lease revenue
26bonds.
27(3) The costs to design, construct, or equip energy conservation
28projects.
29(4) The costs of
deferred maintenance of academic facilities
30and related infrastructure.
31(c) begin deleteNothing in this end deletebegin insertThis end insertsectionbegin delete shallend deletebegin insert does notend insert require the
32Legislature to make an appropriation from the General Fund in
33any specific amount to support the California State University.
34(d) The ability to utilize its support appropriation as stated in
35this section shall not be used as a justification for future increases
36in student tuition, additional employee layoffs, or reductions in
37employee compensation at the California State
University.
Section 92611.7 of the Education Code is amended
39to read:
(a) The regents are urged to offer, on at least a
2semiannual basis, to each of the university’s filers, an orientation
3course on the relevant ethics statutes and regulations that govern
4the official conduct of university officials.
5(b) As used in this section, “filer” means each member, officer,
6or designated employee of the University of California, including
7a regent, who, because of his or her affiliation with the university
8or any subdivision or campus thereof, is required to file a statement
9of economic interests in accordance with Chapter 7 (commencing
10with Section 87100) of Title 9 of the Government Code.
11(c) The regents shall maintain records
indicating the specific
12attendees, each attendee’s job title, and dates of their attendance
13for each orientation course offered pursuant to this section. These
14records shall be maintained for a period of at least five years after
15each course is offered. These records shall be public records subject
16to inspection and copying in accordance withbegin delete subdivision (a) ofend delete
17 Section 81008 of the Government Code and any other public
18records disclosure laws that are applicable to the university.
19(d) Except as provided in subdivision (e), each filer shall attend
20the orientation course established pursuant to subdivision (a) in
21accordance with both of the following:
22(1) For a person who, as of January 1, 2005, is a filer, as defined
23in subdivision (b), not later than December 31, 2005, and thereafter,
24at least once
during each consecutive period of two calendar years
25commencing on January 1, 2007.
26(2) For a person who becomes a filer, as defined in subdivision
27(b), after January 1, 2005, within six months after he or she
28becomes a filer, and at least once during each consecutive period
29of two calendar years commencing on January 1 of the first
30odd-numbered year thereafter.
31(e) The requirements of subdivision (d)begin delete shallend deletebegin insert doend insert not apply to a
32filer, as defined in subdivision (b), who has taken an ethics
33orientation course through another state agency or the Legislature
34within the periods set forth in paragraphs (1) and (2) of subdivision
35(d) if, in the determination of the regents, that course covered
36
substantially the same material as the course the university would
37offer to the filer pursuant to this section.
Section 92675 of the Education Code is amended
39to read:
(a) For purposes of this section, the following terms
2are defined as follows:
3(1) The “four-year graduation rate” means the percentage of a
4cohort of undergraduate students who entered the university as
5freshmen at any campus and graduated from any campus within
6four years.
7(2) The “two-year transfer graduation rate” means the percentage
8of a cohort of undergraduate students who entered the university
9at any campus as junior-level transfer students from the California
10Community Colleges and graduated from any campus within two
11years.
12(3) “Low-income student” means an undergraduate student who
13has an expected family contribution, as
defined in subdivision (g)
14of Section 69432.7, at any time during the student’s matriculation
15at the institution that would qualify the student to receive a federal
16Pell Grant. The calculation of a student’s expected family
17contribution shall be based on the Free Application for Federal
18Student Aid (FAFSA) application or an application determined by
19thebegin delete Californiaend delete Student Aid Commission to be equivalent to the
20FAFSA application submitted by that applicant.
21(b) Commencing with the 2013-14 academic year, the
22University of California shall report, by March 15 of each year,
23on the following performance measures for the preceding academic
24year, to inform budget and policy decisions and promote the
25effective and efficient use of available resources:
26(1) The number of transfer students enrolled from the
California
27Community Colleges, and the percentage of California Community
28College transfer students as a proportion of the total number of
29undergraduate students enrolled.
30(2) The number of new transfer students enrolled from the
31California Community Colleges, and the percentage ofbegin insert newend insert
32 California Community College transfer students as a proportion
33of the total number of new undergraduate students enrolled.
34(3) The number of low-income students enrolled and the
35percentage of low-income students as a proportion of the total
36number of undergraduate students enrolled.
37(4) The number of new low-income students enrolled and the
38percentage ofbegin insert
newend insert low-income students as a proportion of the total
39number of new undergraduate students enrolled.
P187 1(5) The four-year graduation rate for students who entered the
2university four years prior and, separately, for low-income students
3in that cohort.
4(6) The two-year transfer graduation rate for students who
5entered the university two years prior and, separately, for
6low-income students in that cohort.
7(7) The number of degree completions, in total and for the
8following categories:
9(A) Freshman entrants.
10(B) California Community College transfer students.
11(C) Graduate students.
12(D) Low-income students.
13(8) The percentage of freshman entrants who have earned
14sufficient course credits by the end of their first year of enrollment
15to indicate they will graduate within four years.
16(9) The percentage of California Community College transfer
17students who have earned sufficient course credits by the end of
18their first year of enrollment to indicate they will graduate within
19two years.
20(10) For all students, the total amount of funds received from
21all sources identified in subdivision (c) of Section 92670 for the
22year, divided by the number of degrees awarded that same year.
23(11) For undergraduate students, the total amount of funds
24received from the sources identified in
subdivision (c) of Section
2592670 for the year expended for undergraduate education, divided
26by the number of undergraduate degrees awarded that same year.
27(12) The average number of University of California course
28credits and total course credits, including credit accrued at other
29institutions, accumulated by all undergraduate students who
30graduated, and separately for freshman entrants and California
31Community College transfer students.
32(13) (A) The number of degree completions in science,
33technology, engineering, and mathematics (STEM) fields, in total,
34and separately for undergraduate students, graduate students, and
35low-income students.
36(B) For purposes of subparagraph (A), “STEM fields” include,
37but are not necessarily limited to, all of the following: computer
38and information sciences,
engineering and engineering
39technologies, biological and biomedical sciences, mathematics
40and statistics, physical sciences, and science technologies.
P188 1(c) It is the intent of the Legislature that the appropriate policy
2and fiscal committees of the Legislature review these performance
3measures in a collaborative process with the Department of
4Finance, the Legislative Analyst’s Office, individuals with
5expertise in statewide accountability efforts, the University of
6California, the California State University, and, for purposes of
7data integrity and consistency, the California Community Colleges,
8and consider any recommendations for their modification and
9refinement. It is further the intent of the Legislature that any
10modification or refinement of these measures be guided by the
11legislative intent expressed in Section 66010.93.
Section 94143 of the Education Code is amended
13to read:
The authority is authorized from time to time to issue
15its notes for any corporate purpose and renew from time to time
16any notes by the issuance of new notes, whether the notes to be
17renewed have or have not matured. The authority may issue notes
18partly to renew notes or to discharge other obligations then
19outstanding and partly for any other purpose. The notes may be
20authorized, sold,begin delete executedend deletebegin insert executed,end insert and delivered in the same
21manner as bonds. A resolution or resolutions authorizing notes of
22the authority or any issue of notes of the authority may contain
23any provisions that the authority is authorized to include in a
24resolution or resolutions authorizing
bonds of the authority or any
25issue of bonds of the authority, and the authority may include in
26the notes any terms,begin delete covenantsend deletebegin insert covenants,end insert or conditions that it is
27authorized to include in bonds. Notes issued by the authority shall
28be payable from revenues of the authority or other moneys
29available for payment of notes and not otherwise pledged, subject
30only to any contractual rights of the holders of its notes or other
31obligations then outstanding.
Section 94145.5 of the Education Code is amended
33to read:
begin deleteAny end deletebegin insertA end insertprovisionbegin insert thatend insert the authority may include in a
35trust agreementbegin delete ofend delete or resolution providing for the issuance of bonds
36pursuant to this chapter may also be included in a bond andbegin delete the shall have the same effect.
37provisionend delete
Section 94880 of the Education Code is amended
39to read:
(a) There is within the bureau a 14-member advisory
2committee. On or before July 1, 2015, the members of the
3committee shall be appointed as follows:
4(1) Three members, who shall have a demonstrated record of
5advocacy on behalf of consumers, of which the director, the Senate
6Committee on Rules, and the Speaker of the Assembly shall each
7appoint one member.
8(2) Two members, who shall be current or past students of
9institutions, appointed by the director.
10(3) Three members, who shall be representatives of institutions,
11appointed by the director.
12(4) Two members,begin delete whichend deletebegin insert
whoend insert
shall be employersbegin delete thatend deletebegin insert whoend insert hire
13students, appointed by the director.
14(5) One public member appointed by the Senate Committee on
15Rules.
16(6) One public member appointed by the Speaker of the
17Assembly.
18(7) Two nonvoting, ex officio members as follows:
19(A) The chair of the policy committee of the Assembly with
20jurisdiction over legislation relating to the bureau or designee
21appointed by the Speaker of the Assembly.
22(B) The chair of the policy committee of the Senate with
23jurisdiction over
legislation relating to the bureau or designee
24appointed by the Senate Committee on Rules.
25(b) (1) A public member shall not, either at the time of his or
26her appointment or during his or her tenure in office, have any
27financial interest in any organization currently or previously subject
28to regulation by the bureau, be a close family member of an
29employee, officer, or the director of any institution subject to
30regulation by the bureau, or currently have, or previously have
31had, a business relationship, in the five years preceding his or her
32appointment, with any institution subject to regulation by the
33bureau.
34(2) A public member shall not, within the five years immediately
35preceding his or her appointment, have engaged in pursuits on
36behalf of an institution or institutional accreditor or have provided
37representation to the postsecondary educational
industry or a
38profession regulated by the bureau, if he or she is employed in the
39industry or a member of the profession, respectively, and he or
P190 1she shall not engage in those pursuits or provide that representation
2during his or her term of office.
3(c) The advisory committee shall examine the oversight
4functions and operational policies of the bureau and advise the
5bureau with respect to matters relating to private postsecondary
6education and the administration of this chapter, including annually
7reviewing the fee schedule and the equity of the schedule relative
8to the way institutions are structured, and the licensing and
9enforcement provisions of this chapter. The advisory committee
10shall make recommendations with respect to policies, practices,
11and regulations relating to private postsecondary education, and
12shall provide any assistance as may be requested by the bureau.
13(d) The bureau shall actively seek input from, and consult with,
14the advisory committee regarding the development of regulations
15to implement this chapter prior to the adoption, amendment, or
16repeal of its regulations, and provide the advisory committee with
17sufficient time to review and comment on those regulations. The
18bureau shall take into consideration and respond to all feedback
19provided by members of the advisory committee.
20(e) The bureau chief shall attend all advisory committee
21meetings and shall designate staff to provide ongoing
22administrative support to the advisory committee.
23(f) Until January 1, 2017, the director shall personally attend,
24and testify and answer questions at, each meeting of the advisory
25committee.
26(g) The advisory committee shall have the same access to
27records within the
Department of Consumer Affairs related to the
28operation and administration of this chapter as do members of
29constituent boards of the department in regard to records related
30to their functions.
31(h) Advisory committee meetings shall be subject to the
32Bagley-Keene Open Meetingbegin delete Act.end deletebegin insert
Act (Article 9 (commencing
33with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title
342 of the Government Code).end insert Advisory committee meeting materials
35shall be posted on the Internet.
36(i) The advisory committee shall meet at least quarterly and
37shall appoint a member of the committee to represent the committee
38for purposes of communicating with the Legislature.
39(j) The Department of Consumer Affairs shall review, and revise
40if necessary, the department’s conflicts of interest regulations to
P191 1ensure that each advisory committee member is required to disclose
2conflicts of interest to the public.
Section 2150 of the Elections Code, as amended by
4Section 3 of Chapter 619 of the Statutes of 2014, is amended to
5read:
(a) The affidavit of registration shall show:
7(1) The facts necessary to establish the affiant as an elector.
8(2) The affiant’s name at length, including his or her given
9name, and a middle name or initial, or if the initial of the given
10name is customarily used, then the initial and middle name. The
11affiant’s given name may be preceded, at affiant’s option, by the
12designation of Miss, Ms., Mrs., or Mr. A person shall not be denied
13the right to register because of his or her failure to mark a prefix
14to the given name and shall be so advised on the voter registration
15card. This subdivision shall not be construed as requiring the
16printing of prefixes on an affidavit of registration.
17(3) The affiant’s place of residence, residence telephone number,
18if furnished, andbegin delete e-mailend deletebegin insert
emailend insert address, if furnished. A person shall
19not be denied the right to register because of his or her failure to
20furnish a telephone number orbegin delete e-mailend deletebegin insert emailend insert address, and shall be
21so advised on the voter registration card.
22(4) The affiant’s mailing address, if different from the place of
23residence.
24(5) The affiant’s date of birth to establish that he or she will be
25at least 18 years of age on or before the date of the next election.
26In the case of an affidavit of registration submitted pursuant to
27subdivision (d) of Section 2102, the affiant’s date of birth to
28establish that he or she is at least 16 years of age.
29(6) The state or country of the affiant’s birth.
30(7) (A) In the case of an applicant who has been issued a current
31and valid driver’s license, the applicant’s driver’s license number.
32(B) In the case of any other applicant, other than an applicant
33to whom subparagraph (C) applies, the last four digits of the
34applicant’s social security number.
35(C) If an applicant for voter registration has not been issued a
36current and valid driver’s license or a social security number, the
37state shall assign the applicant a number that will serve to identify
38the applicant for voter registration purposes. To the extent that the
39state has a computerized list in effect under this subdivision and
40the list assigns unique identifying numbers to registrants,
the
P192 1number assigned under this subparagraph shall be the unique
2identifying number assigned under the list.
3(8) The affiant’s political party preference.
4(9) That the affiant is currently not imprisoned or on parole for
5the conviction of a felony.
6(10) A prior registration portion indicating whether the affiant
7has been registered at another address, under another name, or as
8preferring another party. If the affiant has been so registered, he
9or she shall give an additional statement giving that address, name,
10or party.
11(b) The affiant shall certify the content of the affidavit as to its
12truth and correctness, under penalty of perjury, with the signature
13of his or her name and the date of signing. If the affiant is unable
14to write he or she shall sign
with a mark or cross.
15(c) The affidavit of registration shall also contain a space that
16would enable the affiant to state his or her ethnicity or race, or
17both. An affiant shall not be denied the ability to register because
18he or she declines to state his or her ethnicity or race.
19(d) If a person, including a deputy registrar, assists the affiant
20in completing the affidavit, that person shall sign and date the
21affidavit below the signature of the affiant.
22(e) The affidavit of registration shall also contain a space to
23permit the affiant to apply for permanent vote by mail status.
24(f) The Secretary of State may continue to supply existing
25affidavits of registration to county elections officialsbegin delete prior toend deletebegin insert
beforeend insert
26 printing new or revised forms that reflect the changes made to this
27section by the act that added this subdivision.
Section 2157 of the Elections Code is amended to
29read:
(a) Subject to this chapter, the paper affidavit of
31registration shall be in a form prescribed by regulations adopted
32by the Secretary of State. The affidavit shall comply with all of
33the following:
34(1) Contain the information prescribed in Section 2150.
35(2) Be sufficiently uniform among the separate counties to allow
36for the processing and use by one county of an affidavit completed
37in another county.
38(3) Allow for the inclusion of informational language to meet
39the specific needs of that county, including, but not limited to, the
40return address of the elections official in that county, and a
P193 1telephone number at which a voter can obtain
elections information
2in that county.
3(4) Be included on one portion of a multipart card, to be known
4as a voter registration card, the other portions of which shall include
5information sufficient to facilitate completion and mailing of the
6affidavit. The affidavit portion of the multipart card shall be
7numbered according to regulations adopted by the Secretary of
8State. For purposes of facilitating the distribution of voter
9registration cards as provided in Section 2158, there shall be
10attached to the affidavit portion a receipt. The receipt shall be
11separated from the body of the affidavit by a perforated line.
12(5) Contain, in a type size and color of ink that is clearly
13distinguishable from surrounding text, a statement identical or
14substantially similar to the following:
15“Certain voters facing life-threatening situations may qualify
16
for confidential voter status. For more information, please contact
17the Secretary of State’s Safebegin delete Atend deletebegin insert
atend insert Home program or visit the
18Secretary of State’s Web site.”
19(6) Contain, in a type size and color of ink that is clearly
20distinguishable from surrounding text, a statement that the use of
21voter registration information for commercial purposes is a
22misdemeanor pursuant to subdivision (a) of Section 2194 and
23Section 18109, and any suspected misuse shall be reported to the
24Secretary of State.
25(7) Contain a toll-free fraud hotline telephone number
26maintained by the Secretary of State that the public may use to
27report suspected fraudulent activity concerning misuse of voter
28registration information.
29(8) Be returnable to the county elections official as a
30self-enclosed mailer with postage prepaid by the Secretary of State.
31(b) begin deleteNothing contained in this end deletebegin insertThis end insertdivisionbegin delete shallend deletebegin insert does notend insert prevent
32the use of voter registration cards and affidavits of registration in
33existence on the effective date of this section and produced
34pursuant to regulations of the Secretary of State, and all references
35to voter registration cards and affidavits in this division shall be
36applied to the existing voter registration cards and affidavits of
37registration.
38(c) The Secretary of State may continue to supply existing
39affidavits of registrationbegin delete prior toend deletebegin insert
beforeend insert printing new or revised
P194 1forms that reflect the changes required pursuant to this section,
2Section 2150, or Section 2160.
3(d) An affidavit of registration shall not be submitted
4electronically on a county’s Internet Web site. However, a county
5may provide a hyperlink on the county’s Internet Web site to the
6Secretary of State’s electronic voter registration system.
Section 8040 of the Elections Code is amended to
8read:
(a) The declaration of candidacy by a candidate shall
10be substantially as follows:
|
DECLARATION OF CANDIDACY |
|
I hereby declare myself a candidate for nomination to the office of ________ District Number ________ to be voted for at the primary election to be held ________, 20__, and declare the following to be true: My name is . I want my name and occupational designation to appear on the ballot as follows: ______________________________________. |
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Addresses: Residence
Business
Mailing
|
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Telephone numbers: Day _________ Evening _________ |
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Web site: _______________________________________ |
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I meet the statutory and constitutional qualifications for this office (including, but not limited to, citizenship, residency, and party preference, if required). |
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I am at present an incumbent of the following public office |
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(if any) __________. |
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If nominated, I will accept the nomination and not withdraw. |
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A candidate for voter-nominated office shall also complete all of the following: |
||
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(1) I hereby certify that: |
||
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(a) At the time of presentation of this declaration, as shown by my current affidavit of registration, I have disclosed the following political party preference, if any: . |
||
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(b) My complete voter registration and party affiliation/preference history, from [10 years prior to current year] through the date of signing this document, is as follows: |
||
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Party Registration |
County |
Timeframe (by year) |
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|
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|
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(2) Pursuant to Section 8002.5 of the Elections Code, select one of the following: |
||
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______ Party Preference: _____________________ (insert the name of the qualified political party as disclosed upon your affidavit of registration). |
||
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______ Party Preference: None (if you have declined to disclose a preference for a qualified political party upon your affidavit of registration). |
||
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Dated this ___ day of _____, 20___. |
||
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||
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Signature of candidate |
||
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State of California |
) |
|
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County of |
) ss. |
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) |
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Subscribed and sworn to before me this ___ day of ________, 20____. |
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Examined and certified by me this ________ day of ________, 20____. |
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WARNING: Every person acting on behalf of a candidate is guilty of a misdemeanor who deliberately fails to file at the proper time and in the proper place any declaration of candidacy in his or her possession which is entitled to be filed under the provisions of the Elections Code Section 18202. |
P196 1(b) At the discretion of the electionsbegin delete official,aend deletebegin insert official, aend insert
2 candidate for a judicial office, or a candidate for any office whose
3voter registration information is confidential under Section 2166,
42166.5, or 2166.7, may withhold his or her residence address from
5the declaration of candidacy. If a candidate does not state his or
6her residence address on the declaration of candidacy, the elections
7official shall verifybegin delete whetherend deletebegin insert ifend insert
the candidate’s address is within
8the appropriate political subdivision and add the notation “verified”
9where appropriate on the declaration.
Section 3201 of the Family Code, as added by
11Section 2 of Chapter 1004 of the Statutes of 1999, is amended and
12renumbered to read:
(a) The programs described in this chapter shall be
15administered by the family law division of the superior court in
16the county.
17(b) For purposes of this chapter, “education about protecting
18children during family disruption” includes education on parenting
19skills and the impact of parental conflict on children, how to put
20a parenting agreement into effect, and the responsibility of both
21parents to comply with custody and visitation orders.
Section 3690 of the Family Code, as added by
23Section 6 of Chapter 653 of the Statutes of 1999, is repealed.
(a) The court may, on any terms that may be just, relieve
25a party from a support order, or any part or parts thereof, after the
26six-month time limit of Section 473 of the Code of Civil Procedure
27has run, based on the grounds, and within the time limits, provided
28in this article.
29(b) In all proceedings under this division, before granting relief,
30the court shall find that the facts alleged as the grounds for relief
31materially affected the original order and that the moving party
32would materially benefit from the granting of the relief.
33(c) Nothing in this article shall limit or modify the provisions
34of Section 11356 or 11356.2 of the Welfare and Institutions Code.
35(d) This section shall not be operative if Assembly Bill 196, of
36the 1999-2000 Regular Session, is enacted and becomes operative.
The heading of Article 3 (commencing with Section
383780) of Chapter 7 of Part 1 of Division 9 of the Family Code is
39repealed.
P197 1
Section 4051 of the Family Code is repealed.
This article takes effect on July 1, 1992.
Section 6203 of the Family Code is amended to
8read:
(a) For purposes of this act, “abuse” means any of the
10following:
11(1) begin deleteIntentionally end deletebegin insertTo intentionally end insertor recklesslybegin delete toend delete cause or
12attempt to cause bodily injury.
13(2) Sexual assault.
14(3) To place a person in reasonable apprehension of imminent
15serious bodily injury to that person or to another.
16(4) To engage
in any behavior that has been or could be enjoined
17pursuant to Section 6320.
18(b) Abuse is not limited to the actual infliction of physical injury
19or assault.
Section 6301 of the Family Code is amended to
21read:
(a) An order under this part may be granted to any person
23described in Section 6211, including a minor pursuant to
24subdivision (b) of Section 372 of the Code of Civil Procedure.
25(b) The right to petition for relief shall not be denied because
26the petitioner has vacated the household to avoid abuse, and in the
27case of a marital relationship, notwithstanding that a petition for
28dissolution of marriage, for nullity of marriage, or for legal
29separation of the parties has not been filed.
30(c) The length of time since the most recent act of abuse is not,
31by itself, determinative. The court shall consider the totality of the
32circumstances in determining whetherbegin insert
to grant or denyend insert a petition
33for reliefbegin delete will be granted or deniedend delete.
Section 7613.5 of the Family Code is amended to
35read:
(a) An intended parent may, but is not required to, use
37the forms set forth in this section to demonstrate his or her intent
38to be a legal parent of a child conceived through assisted
39reproduction. These forms shall satisfy the writing requirement
40specified in Section 7613, and are designed to provide clarity
P198 1regarding the intentions, at the time of conception, of intended
2parents using assisted reproduction. These forms do not affect any
3presumptions of parentage based on Section 7611, and do not
4preclude a court from considering any other claims to parentage
5under California statute or case law.
6(b) These forms apply only in very limited circumstances. Please
7read the forms carefully to see if you qualify for use of the forms.
8(c) These forms do not apply to assisted reproduction agreements
9for gestational carriers or surrogacy agreements.
10(d) begin deleteNothing in this end deletebegin insertThis end insertsection shallbegin insert notend insert be interpreted to require
11the use of one of these forms to satisfy the writing requirement of
12Section 7613.
13(e) The following are the optional California Statutory Forms
14for Assisted Reproduction:
|
California Statutory Forms for Assisted Reproduction, Form 1: |
|
Married Spouses or Registered Domestic Partners Using Assisted Reproduction to Conceive a Child |
|
Use this form if: (1) You and the other person are married spouses or registered domestic partners (including registered domestic partners or civil union partners from another jurisdiction); (2) you and the other person are conceiving a child through assisted reproduction using sperm and/or egg donation; and (3) one of you will be giving birth. |
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WARNING: Signing this form does not terminate the parentage claim of a sperm donor. A sperm donor’s claim to parentage is terminated if the sperm is provided to a licensed physician or surgeon or to a licensed sperm bank prior to insemination as required by Section 7613(b) of the Family Code. |
|
The laws about parentage of a child are complicated. You are strongly encouraged to consult with an attorney about your rights. Even if you do not fill out this form, a spouse or domestic partner of the parent giving birth is presumed to be a legal parent of any child born during the marriage or domestic partnership. |
|
______ ______ |
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This form demonstrates your intent to be parents of the child you plan to conceive through assisted reproduction using sperm and/or egg donation. |
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I, ____________________ (print name of spouse/partner), am married to, or in a registered domestic partnership (including a registered domestic partnership or civil union from another jurisdiction) with, a person who will give birth to a child we plan to conceive through assisted reproduction using sperm and/or egg donation. I consent to the use of assisted reproduction by my spouse/domestic partner to conceive a child. I INTEND to be a parent of the child conceived. |
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SIGNATURES |
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Intended parent who will give birth: ___________________ (print name) |
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________________________ (signature) ____________(date) |
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Intended parent spouse or registered domestic partner: ____________ (print name) |
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_________________________ (signature) ___________(date) |
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______ ______ |
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NOTARY ACKNOWLEDGMENT |
|
State of California |
|
County of ) |
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On before me,
|
|
personally appeared , |
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who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. |
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I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. |
|
WITNESS my hand and official seal. |
|
Signature (Seal) |
|
______ ______ |
|
California Statutory Forms for Assisted Reproduction, Form 2: |
|
Unmarried, Intended Parents Using Intended Parent’s Sperm to Conceive a Child |
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Use this form if: (1) Neither you or the other person are married or in a registered domestic partnership (including a registered domestic partnership or civil union from another state); (2) one of you will give birth to a child conceived through assisted reproduction using the intended parent’s sperm; and (3) you both intend to be parents of that child. |
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Do not use this form if you are conceiving using a surrogate. |
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WARNING: If you do not sign this form, you may be treated as a sperm donor if your sperm is provided to a licensed physician or surgeon or to a licensed sperm bank prior to insemination according to Section 7613(b) of the Family Code. |
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The laws about parentage of a child are complicated. You are strongly encouraged to consult with an attorney about your rights. |
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______ ______ |
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This form demonstrates your intent to be parents of the child you plan to conceive through assisted reproduction using sperm donation. |
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I, ____________________ (print name of parent giving birth), plan to use assisted reproduction with another intended parent who is providing sperm to conceive the child. I am not married and am not in a registered domestic partnership (including a registered domestic partnership or civil union from another jurisdiction), and I INTEND for the person providing sperm to be a parent of the child to be conceived. |
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I, ____________________ (print name of parent providing sperm), plan to use assisted reproduction to conceive a child using my sperm with the parent giving birth. I am not married and am not in a registered domestic partnership (including a registered domestic partnership or civil union from another jurisdiction), and I INTEND to be a parent of the child to be conceived. |
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SIGNATURES |
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Intended parent giving birth: ___________________ (print name) |
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________________________ (signature) ____________(date) |
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Intended parent providing sperm: ____________ (print name) |
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_________________________ (signature) ___________(date) |
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______ ______ |
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NOTARY ACKNOWLEDGMENT |
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State of California |
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County of ) |
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On before me,
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personally appeared , |
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who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. |
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I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. |
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WITNESS my hand and official seal. |
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Signature (Seal) |
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______ ______ |
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California Statutory Forms for Assisted Reproduction, Form 3: |
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Intended Parents Conceiving a Child Using Eggs from One Parent and the Other Parent Will Give Birth |
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Use this form if: You are conceiving a child using the eggs from one of you and the other person will give birth to the child; (2) and you both intend to be parents to that child. |
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Do not use this form if you are conceiving using a surrogate. |
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WARNING: Signing this form does not terminate the parentage claim of a |
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The laws about parentage of a child are complicated. You are strongly encouraged to consult with an attorney about your rights. |
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______ ______ |
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This form demonstrates your intent to be parents of the child you plan to conceive through assisted reproduction using eggs from one parent and the other parent will give birth to the child. |
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I, ____________________ (print name of parent giving birth), plan to use assisted reproduction to conceive and give birth to a child with another person who will provide eggs to conceive the child. I INTEND for the person providing eggs to be a parent of the child to be conceived. |
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I, ____________________ (print name of parent providing eggs), plan to use assisted reproduction to conceive a child with another person who will give birth to the child conceived using my eggs. I INTEND to be a parent of the child to be conceived. |
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SIGNATURES |
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Intended parent giving birth: ___________________ (print name) |
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________________________ (signature) ____________(date) |
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Intended parent providing eggs: ____________ (print name) |
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_________________________ (signature) ___________(date) |
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______ ______ |
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NOTARY ACKNOWLEDGMENT |
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State of California |
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County of ) |
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On before me,
|
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personally appeared , |
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who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. |
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I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. |
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WITNESS my hand and official seal. |
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Signature (Seal) |
Section 8712 of the Family Code is amended to
26read:
(a) The department, county adoption agency, or licensed
28adoption agency shall require each person who files an application
29for adoption to be fingerprinted and shall secure from an
30appropriate law enforcement agency any criminal record of that
31person to determine whether the person has ever been convicted
32of a crime other than a minor traffic violation. The department,
33county adoption agency, or licensed adoption agency may also
34secure the person’s full criminal record, if any, with the exception
35of any convictions for which relief has been granted pursuant to
36Section 1203.49 of the Penal Code. Any federal-level criminal
37offender record requests to the Department of Justice shall be
38submitted with fingerprint images and related information required
39by the Department of Justice for the purposes of obtaining
40information as to the
existence and content of a record of an
P204 1out-of-state or federal conviction or arrest of a person or
2information regarding any out-of-state or federal crimes or arrests
3for which the Department of Justice establishes that the person is
4free on bail, or on his or her own recognizance pending trial or
5appeal. The Department of Justice shall forward to the Federal
6Bureau of Investigation any requests for federal summary criminal
7history information received pursuant to this section. The
8Department of Justice shall review the information returned from
9the Federal Bureau of Investigation and shall compile and
10disseminate a response to the department, county adoption agency,
11or licensed adoption agency.
12(b) Notwithstanding subdivision (c), the criminal record, if any,
13shall be taken into consideration when evaluating the prospective
14adoptive parent, and an assessment of the effects of any criminal
15history on the ability of the prospective adoptive
parent to provide
16adequate and proper care and guidance to the child shall be
17included in the report to the court.
18(c) (1) begin deleteUnder no circumstances shall the end deletebegin insertThe end insertdepartment, county
19adoption agency, or licensed adoption agencybegin insert shall notend insert give final
20approval for an adoptive placement in any homebegin delete whereend deletebegin insert in whichend insert
21 the prospective adoptive parent or any adult living in the
22prospective adoptive home has either of the following:
23(A) A felony conviction for child abuse or neglect, spousal
24abuse, crimes against a child, including child pornography, or for
25a crime involving violence, including rape, sexual assault, or
26homicide, but not including other physical assault and battery. For
27purposes of this subdivision, crimes involving violence means
28those violent crimes contained in clause (i) of subparagraph (A),
29and subparagraph (B), of paragraph (1) of subdivision (g) of
30Section 1522 of the Health and Safety Code.
31(B) A felony conviction that occurred within the last five years
32for physical assault, battery, or a drug- or alcohol-related offense.
33(2) This subdivision shall become operative on October 1, 2008,
34and shall remain operative only to the extent that compliance with
35its provisions is required by federal law as a condition of receiving
36
funding under Title IV-E of the federal Social Security Act (42
37U.S.C. Sec. 670begin delete and following).end deletebegin insert et seq.).end insert
38(d) Any fee charged by a law enforcement agency for
39fingerprinting or for checking or obtaining the criminal record of
40the applicant shall be paid by the applicant. The department, county
P205 1adoption agency, or licensed adoption agency may defer, waive,
2or reduce the fee when its payment would cause economic hardship
3to prospective adoptive parents detrimental to the welfare of the
4adopted child, when the child has been in the foster care of the
5prospective adoptive parents for at least one year, or if necessary
6for the placement of a special-needs child.
Section 8811 of the Family Code is amended to
8read:
(a) The department or delegated county adoption agency
10shall require each person who files an adoption petition to be
11fingerprinted and shall secure from an appropriate law enforcement
12agency any criminal record of that person to determine whether
13the person has ever been convicted of a crime other than a minor
14traffic violation. The department or delegated county adoption
15agency may also secure the person’s full criminal record, if any,
16with the exception of any convictions for which relief has been
17granted pursuant to Section 1203.49 of the Penal Code. Any
18federal-level criminal offender record requests to the Department
19of Justice shall be submitted with fingerprint images and related
20information required by the Department of Justice for the purposes
21of obtaining information as to the existence and content of a record
22of an
out-of-state or federal conviction or arrest of a person or
23information regarding any out-of-state or federal crimes or arrests
24for which the Department of Justice establishes that the person is
25free on bail, or on his or her own recognizance pending trial or
26appeal. The Department of Justice shall forward to the Federal
27Bureau of Investigation any requests for federal summary criminal
28history information received pursuant to this section. The
29Department of Justice shall review the information returned from
30the Federal Bureau of Investigation and shall compile and
31disseminate a response to the department or delegated county
32adoption agency.
33(b) Notwithstanding subdivision (c), the criminal record, if any,
34shall be taken into consideration when evaluating the prospective
35adoptive parent, and an assessment of the effects of any criminal
36history on the ability of the prospective adoptive parent to provide
37adequate and proper care and guidance to
the child shall be
38included in the report to the court.
39(c) (1) begin deleteUnder no circumstances shall the end deletebegin insertThe end insertdepartment or a
40delegated county adoption agencybegin insert shall notend insert give final approval for
P206 1an adoptive placement in any homebegin delete whereend deletebegin insert in whichend insert the prospective
2adoptive parent or any adult living in the prospective adoptive
3home has either of the following:
4(A) A felony conviction for
child abuse or neglect, spousal
5abuse, crimes against a child, including child pornography, or for
6a crime involving violence, including rape, sexual assault, or
7homicide, but not including other physical assault and battery. For
8purposes of this subdivision, crimes involving violence means
9those violent crimes contained in clause (i) of subparagraph (A),
10and subparagraph (B), of paragraph (1) of subdivision (g) of
11Section 1522 of the Health and Safety Code.
12(B) A felony conviction that occurred within the last five years
13for physical assault, battery, or a drug- or alcohol-related offense.
14(2) This subdivision shall become operative on October 1, 2008,
15and shall remain operative only to the extent that compliance with
16its provisions is required by federal law as a condition of receiving
17funding under Title IV-E of the federal Social Security Act (42
18U.S.C. 670begin delete and following).end deletebegin insert
et seq.).end insert
19(d) Any fee charged by a law enforcement agency for
20fingerprinting or for checking or obtaining the criminal record of
21the petitioner shall be paid by the petitioner. The department or
22delegated county adoption agency may defer, waive, or reduce the
23fee when its payment would cause economic hardship to the
24prospective adoptive parents detrimental to the welfare of the
25adopted child, when the child has been in the foster care of the
26prospective adoptive parents for at least one year, or if necessary
27for the placement of a special-needs child.
Section 8908 of the Family Code is amended to
29read:
(a) A licensed adoption agency shall require each person
31filing an application for adoption to be fingerprinted and shall
32secure from an appropriate law enforcement agency any criminal
33record of that person to determine whether the person has ever
34been convicted of a crime other than a minor traffic violation. The
35licensed adoption agency may also secure the person’s full criminal
36record, if any, with the exception of any convictions for which
37relief has been granted pursuant to Section 1203.49 of the Penal
38Code. Any federal-level criminal offender record requests to the
39Department of Justice shall be submitted with fingerprint images
40and related information required by the Department of Justice for
P207 1the purposes of obtaining information as to the existence and
2content of a record of an out-of-state or federal conviction or arrest
3
of a person or information regarding any out-of-state or federal
4crimes or arrests for which the Department of Justice establishes
5that the person is free on bail, or on his or her own recognizance
6pending trial or appeal. The Department of Justice shall forward
7to the Federal Bureau of Investigation any requests for federal
8summary criminal history information received pursuant to this
9section. The Department of Justice shall review the information
10returned from the Federal Bureau of Investigation and shall compile
11and disseminate a fitness determination to the licensed adoption
12agency.
13(b) Notwithstanding subdivision (c), the criminal record, if any,
14shall be taken into consideration when evaluating the prospective
15adoptive parent, and an assessment of the effects of any criminal
16history on the ability of the prospective adoptive parent to provide
17adequate and proper care and guidance to the child shall be
18included in the report to the
court.
19(c) (1) begin deleteUnder no circumstances shall a end deletebegin insertA end insertlicensed adoption
20agencybegin insert shall notend insert give final approval for an adoptive placement in
21any homebegin delete whereend deletebegin insert in whichend insert the prospective adoptive parent, or any
22adult living in the prospective adoptive home, has a felony
23conviction for either of the following:
24(A) Any felony conviction for child abuse or neglect, spousal
25abuse, crimes against
a child, including child pornography, or for
26a crime involving violence, including rape, sexual assault, or
27homicide, but not including other physical assault and battery. For
28purposes of this subdivision, crimes involving violence means
29those violent crimes contained in clause (i) of subparagraph (A),
30and subparagraph (B), of paragraph (1) of subdivision (g) of
31Section 1522 of the Health and Safety Code.
32(B) A felony conviction that occurred within the last five years
33for physical assault, battery, or a drug- or alcohol-related offense.
34(2) This subdivision shall become operative on October 1, 2008,
35and shall remain operative only to the extent that compliance with
36its provisions is required by federal law as a condition of receiving
37funding under Title IV-E of the federal Social Security Act (42
38U.S.C. 670begin delete and following).end deletebegin insert
et seq.).end insert
39(d) Any fee charged by a law enforcement agency for
40fingerprinting or for checking or obtaining the criminal record of
P208 1the applicant shall be paid by the applicant. The licensed adoption
2agency may defer, waive, or reduce the fee when its payment would
3cause economic hardship to the prospective adoptive parents
4detrimental to the welfare of the adopted child.
Section 12201 of the Financial Code is amended to
6read:
(a) An application for a license shall be in writing,
8under oath, and in a form prescribed by the commissioner and shall
9contain the name, and the address both of the residence and place
10of business, of the applicant and if the applicant is a partnership
11or association, of every member thereof, and if a corporation, of
12every officer and director thereof.
13(b) Notwithstanding any other law, the commissioner may by
14rule or order prescribe circumstances under which to accept
15electronic records or electronic signatures. This sectionbegin delete shallend deletebegin insert doesend insert
16 not require the commissioner to accept
electronic records or
17electronic signatures.
18(c) For purposes of this section, the following terms have the
19following meanings:
20(1) “Electronic record” means an initial license application, or
21material modification of that license application, and any other
22record created, generated, sent, communicated, received, or stored
23by electronic means. “Electronic record” also includes, but is not
24limited to, all of the following:
25(A) An application, amendment, supplement, and exhibit, filed
26for any license, consent, or other authority.
27(B) A financial statement,begin delete reports,end deletebegin insert report,end insert
or advertising.
28(C) An order, license, consent, or other authority.
29(D) A notice of public hearing, accusation, and statement of
30issues in connection with any application, license, consent, or other
31authority.
32(E) A proposed decision of a hearing officer and a decision of
33the commissioner.
34(F) The transcripts of a hearing.
35(G) A release, newsletter, interpretive opinion, determination,
36or specific ruling.
37(H) Correspondence between a party and the commissioner
38directly relating to any document listed in subparagraphs (A) to
39(G), inclusive.
P209 1(2) “Electronic signature” means an electronic sound, symbol,
2or process attached to or logically associated with an electronic
3record and executed or adopted by a person with the intent to sign
4the electronic record.
5(d) The Legislature finds and declares that the Department of
6Business Oversight has continuously implemented methods to
7accept records filed electronically, and is encouraged to continue
8to expand its use of electronic filings to the extent feasible, as
9budget, resources, and equipment are made available to accomplish
10that goal.
Section 17201 of the Financial Code is amended to
12read:
(a) An application for a license as an escrow agent
14shall be in writing and in such form as is prescribed by the
15commissioner. The application shall be verified by the oath of the
16applicant.
17(b) Notwithstanding any other law, the commissioner may by
18rule or order prescribe circumstances under which to accept
19electronic records or electronic signatures. This sectionbegin delete shallend deletebegin insert doesend insert
20 not require the commissioner to accept electronic records or
21electronic signatures.
22(c) For purposes of this section, the following terms
have the
23following meanings:
24(1) “Electronic record” means an initial license application, or
25material modification of that license application, and any other
26record created, generated, sent, communicated, received, or stored
27by electronic means. “Electronic records” also includes, but is not
28limited to, all of the following:
29(A) An application, amendment, supplement, and exhibit, filed
30for any order, license, consent, or other authority.
31(B) A financial statement,begin delete reports,end deletebegin insert report,end insert or advertising.
32(C) An order, license, consent, or other authority.
33(D) A notice of public hearing, accusation, and statement of
34issues in connection with any application, registration, order,
35license, consent, or other authority.
36(E) A proposed decision of a hearing officer and a decision of
37the commissioner.
38(F) The transcripts of a hearing and correspondence between a
39party and the commissioner directly relating to the record.
P210 1(G) A release, newsletter, interpretive opinion, determination,
2or specific ruling.
3(H) Correspondence between a party and the commissioner
4directly relating to any document listed in subparagraphs (A) to
5(G), inclusive.
6(2) “Electronic signature” means an electronic
sound, symbol,
7or process attached to or logically associated with an electronic
8record and executed or adopted by a person with the intent to sign
9the electronic record.
10(d) The Legislature finds and declares that the Department of
11Business Oversight has continuously implemented methods to
12accept records filed electronically, and is encouraged to continue
13to expand its use of electronic filings to the extent feasible, as
14budget, resources, and equipment are made available to accomplish
15that goal.
Section 22066 of the Financial Code is amended to
17read:
(a) The Legislature finds and declares that nonprofit
19organizations have an important role to play in helping individuals
20obtain access to affordable, credit-building small dollar loans.
21California law should refrain from creating statutory barriers that
22risk slowing the growth of these loans. This section shall be
23liberally construed to encourage nonprofit organizations to help
24facilitate the making of zero-interest, low-cost loans, through
25lending circles and other programs and services that allow
26individuals to establish and build credit histories or to improve
27their credit scores.
28(b) For the purposes of this section, an organization described
29in subdivision (c) shall be known as an exempt organization, and
30an organization described in subdivision (d) shall be
known as a
31partnering organization.
32(c) There shall be exempted from this division a nonprofit
33organization that facilitates one or more zero-interest, low-cost
34loans, provided all of the following conditions are met:
35(1) The organization is exempt from federal income taxes under
36Section 501(c)(3) of the Internal Revenue Code and is organized
37and operated exclusively for one or more of the purposes described
38in Section 501(c)(3) of the Internal Revenue Code.
39(2) No part of the net earnings of the organization inures to the
40benefit of a private shareholder or individual.
P211 1(3) begin deleteNo end deletebegin insertA end insertbroker’s
fee isbegin insert notend insert paid in connection with the making
2of the loan that is facilitated by the organization.
3(4) begin deleteAny
end delete
4exemption granted under this section shall file an application for
5exemption with the commissioner, in a manner prescribed by the
6commissioner, and shall pay a fee to the commissioner, in an
7amount calculated by the commissioner to cover his or her costs
8to administer this section and Section 22067. The commissioner
9may refuse to grant an exemption, or to suspend or revoke a
10previously issued exemption if he or she finds that one or more of
11the provisions of this section were not met or are not being met
12by the organization and that denial, suspension, or revocation of
13the exemption is in the best interests of the public.
14(5) Every organization whose exemption is approved by the
15commissioner shall file an annual report with the commissioner
16on or before March 15 of each year,
containing relevant information
17that the commissioner reasonably requires concerning lending
18facilitated by the organization within the state during the preceding
19calendar year at all locations at which the organization facilitates
20lending. The commissioner shall compile the information submitted
21pursuant to this paragraph for use in preparing the report required
22by Section 22067.
23(6) Any loan made pursuant to this section shall comply with
24the following requirements:
25(A) The loan shall be unsecured.
26(B) begin deleteNo interest may end deletebegin insertInterest shall not end insertbe imposed.
27(C) An
administrative fee may be charged in an amount not to
28exceed the following:
29(i) Seven percent of the principal amount, exclusive of the
30administrative fee, or ninety dollars ($90), whichever is less, on
31the first loan made to a borrower.
32(ii) Six percent of the principal amount, exclusive of the
33administrative fee, or seventy-five dollars ($75), whichever is less,
34on the second and subsequent loans made to that borrower.
35(D) An organization shall not charge the same borrower an
36administrative fee more than once in any four-month period. Each
37administrative fee shall be fully earned immediately upon
38consummation of a loan agreement.
39(E) Notwithstanding subdivision (a) of Section 22320.5 and in
40lieu of any other type of delinquency fee or late fee, an
organization
P212 1may require reimbursement from a borrower of up to ten dollars
2($10) to cover an insufficient funds fee incurred by that
3organization due to actions of the borrower.begin delete Noend deletebegin insert Anend insert organization
4shallbegin insert notend insert charge more than two insufficient funds fees to the same
5borrower in a single month.
6(F) The following information shall be disclosed to the consumer
7in writing, in a typeface no smaller than 12-point type, at the time
8of the loan application:
9(i) The amount to be borrowed, the total dollar cost of the loan
10to the consumer if the loan is paid back on time, including the sum
11of the
administrative fee and principal amount borrowed, the
12corresponding annual percentage rate, calculated in accordance
13with Federal Reserve Board Regulation Z (12 C.F.R. 226.1), the
14periodic payment amount, the payment frequency, and the
15insufficient funds fee, if applicable.
16(ii) An explanation of whether, and under what circumstances,
17a borrower may exit a loan agreement.
18(G) The loan shall have a minimum principal amount upon
19origination of two hundred fifty dollars ($250) and a maximum
20principal amount upon origination of two thousand five hundred
21dollars ($2,500), and a term of not less than the following:
22(i) Ninety days for loans whose principal balance upon
23origination is less than five hundred dollars ($500).
24(ii) One hundred twenty days for
loans whose principal balance
25upon origination is at least five hundred dollars ($500), but is less
26than one thousand five hundred dollars ($1,500).
27(iii) One hundred eighty days for loans whose principal balance
28upon origination is at least one thousand five hundred dollars
29($1,500).
30(H) The loan shall not be refinanced.
31(I) begin deleteNeither the end deletebegin insertThe end insertorganizationbegin delete norend deletebegin insert orend insert any of its wholly owned
32subsidiaries shallbegin insert
notend insert
sell or assign unpaid debt to an independent
33party for collection before at least 90begin delete hasend deletebegin insert days haveend insert passed since
34the start of the delinquency.
35(7) Prior to disbursement of loan proceeds, the organization
36shall either (A) offer a credit education program or seminar to the
37borrower that has been previously reviewed and approved by the
38commissioner for use in complying with this section, or (B) invite
39the borrower to a credit education program or seminar offered by
40an independent third party that has been previously reviewed and
P213 1approved by the commissioner for use in complying with this
2section. A credit education program or seminar offered pursuant
3to this paragraph shall be provided at no cost to the borrower.
4(8) The organization shall report each borrower’s payment
5performance to at least one consumer reporting agency that
6compiles and maintains files on consumers on a nationwide basis,
7upon acceptance as a data furnisher by that consumer reporting
8agency. For purposes of this section, a consumer reporting agency
9that compiles and maintains files on consumers on a nationwide
10basis is one that meets the definition in Section 603(p) of the
11federal Fair Credit Reporting Act (15 U.S.C. Sec. 1681a(p)).begin delete Anyend delete
12begin insert Anend insert organization that is accepted as a data furnisher after being
13granted an exemption by the commissioner pursuant to this
14subdivision shall report all borrower payment performance since
15its inception of lending under the program, as soon as practicable
16after its
acceptance into the program, but in no event more than
17six months after its acceptance into the program.
18(9) The organization shall underwrite each loan and shall ensure
19that a loan is not made if, through its underwriting, the organization
20determines that the borrower’s total monthly debt service payments,
21at the time of loan origination, including the loan for which the
22borrower is being considered, and across all outstanding forms of
23credit that can be independently verified by the organization,
24exceed 50 percent of the borrower’s gross monthly household
25income except as specified in clause (iii) of subparagraph (D).
26(A) The organization shall seek information and documentation
27pertaining to all of a borrower’s outstanding debt obligations during
28the loan application and underwriting process, including loans that
29are self-reported by the borrower but not available through
30
independent verification. The organization shall verify that
31information using a credit report from at least one consumer
32reporting agency that compiles and maintains files on consumers
33on a nationwide basis or through other available electronic debt
34verification services that provide reliable evidence of a borrower’s
35outstanding debt obligations.
36(B) The organization shall also request from the borrower and
37include all information obtained from the borrower regarding
38outstanding deferred deposit transactions in the calculation of the
39borrower’s outstanding debt obligations.
P214 1(C) The organization shall not be required to consider, for
2purposes of debt-to-income ratio evaluation, loans from friends or
3family.
4(D) The organization shall also verify the borrower’s household
5income that the organization relies on to
determine the borrower’s
6debt-to-income ratio using information from any of the following:
7(i) Electronic means or services that provide reliable evidence
8of the borrower’s actual income.
9(ii) Internal Revenue Service Form W-2, tax returns, payroll
10receipts, bank statements, or other third-party documents that
11provide reasonably reliable evidence of the borrower’s actual
12income.
13(iii) A signed statement from the borrower stating sources and
14amounts of income, if the borrower’s actual income cannot be
15independently verified using electronic means or services, Internal
16Revenue Service forms, tax returns, payroll receipts, bank
17statements, or other third-party documents. If income is verified
18using a signed statement from a borrower, a loan shall not be made
19if the borrower’s total monthly debt service payments, at the
time
20of loan origination, including the loan for which the borrower is
21being considered, and across all outstanding forms of credit, exceed
2225 percent of the borrower’s gross monthly household income.
23(10) The organization shall notify each borrower, at least two
24days prior to each payment due date, informing the borrower of
25the amount due and the payment due date. Notification may be
26provided by any means mutually acceptable to the borrower and
27the organization. A borrower shall have the right to opt out of this
28notification at any time, upon electronic or written request to the
29organization. The organization shall notify each borrower of this
30right prior to disbursing loan proceeds.
31(11) Notwithstanding Sections 22311 to 22315, inclusive, no
32organization, in connection with, or incidental to, the facilitating
33of any loan made pursuant to this section, may offer, sell, or require
34
a borrower to contract for “credit insurance” as defined in
35paragraph (1) of subdivision (a) of Section 22314 or insurance on
36tangible personal or real property of the type specified in Section
3722313.
38(12) begin deleteNo end deletebegin insertAn end insertorganization shallbegin insert notend insert require, as a condition of
39making a loan, that a borrower waive any right, penalty, remedy,
40forum, or procedure provided for in any law applicable to the loan,
P215 1including the right to file and pursue a civil action or file a
2complaint with or otherwise communicate with the commissioner
3or any court or other public entity, or that the borrower agree to
4resolve disputes in a jurisdiction outside of California or to the
5
application of laws other than those of California, as provided by
6law. Any waiver by a borrower must be knowing, voluntary, and
7in writing, and expressly not made a condition of doing business
8with the organization. Any waiver that is required as a condition
9of doing business with the organization shall be presumed
10involuntary, unconscionable, against public policy, and
11unenforceable. The organization has the burden of proving that a
12waiver of any rights, penalties, forums, or procedures was knowing,
13voluntary, and not made a condition of the contract with the
14borrower.
15(13) begin deleteNo end deletebegin insertAn end insertorganization shallbegin insert notend insert refuse to do business with or
16discriminate
against a borrower or applicant on the basis that the
17borrower or applicant refuses to waive any right, penalty, remedy,
18forum, or procedure, including the right to file and pursue a civil
19action or complaint with, or otherwise notify, the commissioner
20or any court or other public entity. The exercise of a person’s right
21to refuse to waive any right, penalty, remedy, forum, or procedure,
22including a rejection of a contract requiring a waiver, shall not
23affect any otherwise legal terms of a contract or an agreement.
24(14) This sectionbegin delete shallend deletebegin insert doesend insert not apply to any agreement to waive
25any right, penalty, remedy, forum, or procedure, including any
26agreement to arbitrate a claim or dispute, after a claim or dispute
27has arisen.begin delete Nothing in thisend deletebegin insert
Thisend insert
sectionbegin delete shallend deletebegin insert does notend insert affect the
28enforceability or validity of any other provision of the contract.
29(d) This division does not apply to a nonprofit organization that
30partners with an organization granted an exemption pursuant to
31subdivision (c) for the purpose of facilitating zero-interest, low-cost
32loans, provided that the requirements of paragraphs (6) to (14),
33inclusive, of subdivision (c), and the following additional
34conditions are met:
35(1) The partnership of each exempt organization and each
36partnering organization shall be formalized through a written
37agreement that specifies the obligations of each party. Each written
38agreement shall contain a provision establishing
that the partnering
39organization agrees to comply with the provisions of this section
40and any regulations that may be adopted by the commissioner
P216 1pursuant to this section. Eachbegin delete suchend deletebegin insert writtenend insert agreement shall be
2provided to the commissioner upon request.
3(2) Each partnering organization shall meet the requirements
4for federal income tax exemption under Section 501(c)(3) of the
5Internal Revenue Code and shall be organized and operated
6exclusively for one or more of the purposes described in Section
7501(c)(3) of the Internal Revenue Code.
8(3) No part of the net earnings of the partnering organization
9shall inure to the benefit of a private shareholder or individual.
10(4) Each exempt organization shall notify the commissioner
11within 30 days of entering into a written agreement with a
12partnering organization, on such form and in such manner as the
13commissioner may prescribe. At a minimum, this notification shall
14include the name of the partnering organization, the contact
15information for a person responsible for the lending activities
16facilitated by that partnering organization, and the address or
17addresses at which the organization facilitates lending activities.
18(5) Upon a determination that a partnering organization has
19acted in violation of this section or any regulation adopted
20thereunder, the commissioner may disqualify that partnering
21organization from performing services under this section, bar that
22organization from performing services at one or more specific
23locations of that organization, terminate a written agreement
24between a
partnering organization and an exempt organization,
25and, if the commissioner deems such action to be in the public
26interest, prohibit the use of that partnering organization by all
27organizations granted exemptions by the commissioner pursuant
28to subdivision (c).
29(6) The exempt organization shall include information regarding
30the loans facilitated by the partnering organization in the annual
31report required pursuant to paragraph (5) of subdivision (c).
32(e) The commissioner may examine each exempt organization
33and each partnering organization for compliance with the
34provisions of this section, upon reasonable notice to the party
35responsible for the lending activities facilitated by that
36organization.begin delete Anyend deletebegin insert Anend insert
organization so examined shall make
37available to the commissioner or his or her representative all books
38and records requested by the commissioner related to the lending
39activities facilitated by that organization. The cost ofbegin delete any suchend deletebegin insert theend insert
40 examination shall be paid by the exempt organization.
P217 1(f) This sectionbegin delete shallend deletebegin insert doesend insert not apply to any loan of a bona fide
2principal amount of two thousand five hundred dollars ($2,500)
3or more as determined in accordance with Section 22251. For
4purposes of this subdivision, “bona fide principal amount” shall
5be determined
in accordance with Section 22251.
Section 22101 of the Financial Code is amended to
7read:
(a) An application for a license as a finance lender or
9broker under this division shall be in the form and contain the
10information that the commissioner may by rule or order require
11and shall be filed upon payment of the fee specified in Section
1222103.
13(b) Notwithstanding any other law, an applicant who does not
14currently hold a license as a finance lender or broker under this
15division shall furnish, with his or her application, a full set of
16fingerprints and related information for purposes of the
17commissioner conducting a criminal history record check. The
18commissioner shall obtain and receive criminal history information
19from the Department of Justice and the Federal Bureau of
20Investigation pursuant to Section 22101.5.
21(c) This section shall not be construed to prevent a licensee from
22engaging in the business of a finance lender through a subsidiary
23corporation if the subsidiary corporation is licensed pursuant to
24this division.
25(d) For purposes of this section, “subsidiary corporation” means
26a corporation that is wholly owned by a licensee.
27(e) A new application shall not be required for a change in the
28address of an existing location previously licensed under this
29division. However, the licensee shall comply with the requirements
30of Section 22153.
31(f) Notwithstanding subdivisions (a) to (e), inclusive, the
32commissioner may by rule require an application to be made
33through the Nationwide Mortgage Licensing System and Registry,
34and may require fees, fingerprints, financial
statements, supporting
35documents, changes of address, and any other information, and
36amendments or modifications thereto, to be submitted in the same
37manner.
38(g) Notwithstanding any other law, the commissioner may by
39rule or order prescribe circumstances under which to accept
40electronic records or electronic signatures. This sectionbegin delete shallend deletebegin insert doesend insert
P218 1 not require the commissioner to accept electronic records or
2electronic signatures.
3(h) For purposes of this section, the following terms have the
4following meanings:
5(1) “Electronic record” means an initial license application, or
6material modification of that license application, and any
other
7record created, generated, sent, communicated, received, or stored
8by electronic means. “Electronic records” also includes, but is not
9limited to, all of the following:
10(A) An application, amendment, supplement, and exhibit, filed
11for any license, consent, or other authority.
12(B) A financial statement,begin delete reports,end deletebegin insert report,end insert
or advertising.
13(C) An order, license, consent, or other authority.
14(D) A notice of public hearing, accusation, and statement of
15issues in connection with any application, license, consent, or other
16authority.
17(E) A proposed decision of a hearing officer and a decision of
18the commissioner.
19(F) The transcripts of a hearing and correspondence between a
20party and the commissioner directly relating to the record.
21(G) A release, newsletter, interpretive opinion, determination,
22or specific ruling.
23(H) Correspondence between a party and the commissioner
24directly relating to any document listed in subparagraphs (A) to
25
(G), inclusive.
26(2) “Electronic signature” means an electronic sound, symbol,
27or process attached to or logically associated with an electronic
28record and executed or adopted by a person with the intent to sign
29the electronic record.
30(i) The Legislature finds and declares that the Department of
31Business Oversight has continuously implemented methods to
32accept records filed electronically, and is encouraged to continue
33to expand its use of electronic filings to the extent feasible, as
34budget, resources, and equipment are made available to accomplish
35that goal.
Section 23005 of the Financial Code is amended to
37read:
(a) A person shall not offer, originate, or make a
39deferred deposit transaction, arrange a deferred deposit transaction
40for a deferred deposit originator, act as an agent for a deferred
P219 1deposit originator, or assist a deferred deposit originator in the
2origination of a deferred deposit transaction without first obtaining
3a license from the commissioner and complying with the provisions
4of this division. The requirements of this subdivision shall not
5apply to persons or entities that are excluded from the definition
6of “licensee” as set forth in Section 23001. This division shall not
7be construed to require the commissioner to create separate classes
8of licenses.
9(b) An application for a license under this division shall be in
10the form and contain the information
that the commissioner may
11by rule require and shall be filed upon payment of the fee specified
12in Section 23006.
13(c) A licensee with one or more licensed locations seeking an
14additional location license may file a short form license application
15as may be established by the commissioner pursuant to subdivision
16(b) of this section.
17(d) Notwithstanding any other law, the commissioner may by
18rule or order prescribe circumstances under which to accept
19electronic records or electronic signatures. This sectionbegin delete shallend deletebegin insert doesend insert
20 not require the commissioner to accept electronic records or
21electronic signatures.
22(e) For purposes of this
section, the following terms have the
23following meanings:
24(1) “Electronic record” means an initial license application, or
25material modification of that license application, and any other
26record created, generated, sent, communicated, received, or stored
27by electronic means. “Electronic records” also includes, but is not
28limited to, all of the following:
29(A) An application, amendment, supplement, and exhibit, filed
30for any license, consent, or other authority.
31(B) A financial statement,begin delete reports,end deletebegin insert report,end insert or advertising.
32(C) An order, license, consent, or other authority.
33(D) A notice of public hearing, accusation, and statement of
34issues in connection with any application, license, consent, or other
35authority.
36(E) A proposed decision of a hearing officer and a decision of
37the commissioner.
38(F) The transcripts of a hearing.
39(G) A release, newsletter, interpretive opinion, determination,
40or specific ruling.
P220 1(H) Correspondence between a party and the commissioner
2directly relating to any document listed in subparagraphs (A) to
3(G), inclusive.
4(2) “Electronic signature” means an electronic sound, symbol,
5or process attached to or logically associated with an electronic
6record and
executed or adopted by a person with the intent to sign
7the electronic record.
8(f) The Legislature finds and declares that the Department of
9Business Oversight has continuously implemented methods to
10accept records filed electronically, and is encouraged to continue
11to expand its use of electronic filings to the extent feasible, as
12budget, resources, and equipment are made available to accomplish
13that goal.
Section 23015 of the Financial Code, as added by
15Section 25 of Chapter 101 of the Statutes of 2007, is amended and
16renumbered to read:
(a) It is unlawful for any person to knowingly alter,
19destroy, mutilate, conceal, cover up, falsify, or make a false entry
20in any record, document, or tangible object with the intent to
21impede, obstruct, or influence the administration or enforcement
22of any provision of this division.
23(b) It is unlawful for any person to knowingly make an untrue
24statement to the commissioner during the course of licensing,
25investigation, or examination, with the intent to impede, obstruct,
26or influence the administration or enforcement of any
provision
27of this division.
Section 24058 of the Financial Code is repealed.
This division does not apply to any loans made or
30arranged by a licensed residential mortgage lender or servicer when
31acting under the authority of that license.
Section 32208 of the Financial Code is amended to
33read:
“Energy Commission” means thebegin delete Californiaend deletebegin insert Stateend insert
35 Energy Resources Conservation and Development Commission.
The heading of Article 1 (commencing with Section
3732700) of Chapter 6 of Division 15.5 of the Financial Code is
38repealed.
39
The heading of Article 2 (commencing with Section
232710) of Chapter 6 of Division 15.5 of the Financial Code is
3repealed.
4
The heading of Chapter 8 (commencing with Section
850601) of Division 20 of the Financial Code is repealed.
9
Section 1652 of the Fish and Game Code is amended
13to read:
(a) A project proponent may submit a written request
15to approve a habitat restoration or enhancement project to the
16director pursuant to this section if the project has not received
17certification pursuant to the State Water Resources Control Board’s
18Order for Clean Water Act Section 401 General Water Quality
19Certification for Small Habitat Restoration Projects, or its current
20equivalent at the time the project proponent submits the written
21request. If the project has received certification pursuant to that
22order, or its current equivalent, the project proponent may submit
23a request for approval of the project pursuant to Section 1653.
24(b) A written request to approve a habitat restoration or
25enhancement project pursuant to this section shall contain all of
26the
following:
27(1) The name, address, title, organization, telephone number,
28and email address of the natural person or persons who will be the
29main point of contact for the project proponent.
30(2) A full description of the habitat restorationbegin delete andend deletebegin insert orend insert
31 enhancement project that includes the designs and techniques to
32be used for the project, restoration or enhancement methods, an
33estimate of temporary restoration- or enhancement-related
34disturbance, project schedule, anticipated activities, and how the
35project is expected to result in a net benefit to any affected habitat
36and species, consistent with paragraph (4) of subdivision (c).
37(3) An assessment of the project area that provides a description
38of the existing flora and fauna and the potential presence of
39sensitive species or habitat. The assessment shall include preproject
40photographs of the project area that include a descriptive title, date
P222 1taken, the photographic monitoring point, and photographic
2orientation.
3(4) A geographic description of the project site including maps,
4land ownership information, and other relevant location
5information.
6(5) A description of the environmental protection measures
7incorporated into the project design, so that no potentially
8significant adverse effects on the environment, as defined in
9Section 15382 of Title 14 of the California Code of Regulations,
10are likely to occur with application of the specified environmental
11protection measures. Environmental protection measures may
12include, but are not limited
to, appropriate seasonal work
13limitations, measures to avoid and minimize impacts to water
14quality and potentially present species protected by state and
15federal law, and the use of qualified professionals for standard
16preconstruction surveys where protected species are potentially
17present.
18(6) Substantial evidence to support a conclusion that the project
19meets the requirements set forth in this section. Substantial
20evidence shall include references to relevant design criteria and
21environmental protection measures found in the documents
22specified in paragraph (4) of subdivision (c).
23(7) A certifying statement that the project will comply with the
24California Environmental Quality Act (Division 13 (commencing
25with Section 21000) of the Public Resources Code), which may
26include, but not be limited to, the requirements of Section 15333
27of Title 14 of the California Code of
Regulations.
28(c) Notwithstanding any other law, within 60 days after receiving
29a written request to approve a habitat restoration or enhancement
30project, the director shall approve a habitat restoration or
31enhancement project if the director determines that the written
32request includes all of the required information set forth in
33subdivision (b), and the project meets all of the following
34requirements:
35(1) The project purpose is voluntary habitat restoration and the
36project is not required as mitigation.
37(2) The project is not part of a regulatory permit for a nonhabitat
38restoration or enhancement construction activity, a regulatory
39settlement, a regulatory enforcement action, or a court order.
P223 1(3) The project meets the eligibility requirements of the
State
2Water Resources Control Board’s Order for Clean Water Act
3Section 401 General Water Quality Certification for Small Habitat
4Restoration Projects, or its current equivalent at the time the project
5proponent submits the written request, but has not received
6certification pursuant to that order or its equivalent.
7(4) The project is consistent with, or identified in, sources that
8describe best available restoration and enhancement methodologies,
9including one or more of the following:
10(A) Federal- and state-listed species recovery plans or published
11protection measures, or previously approved department
12agreements and permits issued for voluntary habitat restoration or
13enhancement projects.
14(B) Department and National Marine Fisheries Service fish
15screening criteria or fish passage guidelines.
16(C) The department’s California Salmonid Stream Habitat
17Restoration Manual.
18(D) Guidance documents and practice manuals that describe
19best available habitat restoration or enhancement methodologies
20that are utilized or approved by the department.
21(5) The project will not result in cumulative adverse
22environmental impacts that are significant when viewed in
23connection with the effects of past, current, or probable future
24projects.
25(d) If the director determines that the written request does not
26contain all of the information required by subdivision (b), or fails
27to meet the requirements set forth in subdivision (c), or both, the
28director shall deny the written request and inform the project
29proponent of the reason or reasons for the denial.
30(e) The project proponent shall submit a notice of completion
31to the department no later than 30 days after the project approved
32pursuant to this section is completed. The notice of completion
33shall demonstrate that the project has been carried out in
34accordance with the project’s description. The notice of completion
35shall include a map of the project location, including the final
36boundaries of the restoration area or areas and postproject
37photographs. Each photograph shall include a descriptive title,
38date taken, photographic monitoring point, and photographic
39orientation.
P224 1(f) The project proponent shall submit a monitoring report
2describing whether the restoration project is meeting each of the
3restoration goals stated in the project application. Each report shall
4include photographs with a descriptive title, date taken,
5photographic monitoring point, and photographic orientation.
The
6monitoring reports for Section 401 Water Quality Certification or
7waste discharge requirements of the State Water Resources Control
8Board or a regional water quality control board, or for department
9or federal voluntary habitat restoration programs, including, but
10not limited to, the Fisheries Restoration Grant Program, may be
11submitted in lieu of this requirement.
Section 1653 of the Fish and Game Code is amended
13to read:
(a) A project proponent may submit a written request
15to approve a habitat restoration or enhancement project to the
16director pursuant to this section if the project has received
17certification pursuant to the State Water Resources Control Board’s
18Order for Clean Water Act Section 401 General Water Quality
19Certification for Small Habitat Restoration Projects, or its current
20equivalent at the time the project proponent submits the written
21request.
22(b) A written request to approve a habitat restoration or
23enhancement project pursuant to this section shall include all of
24the following:
25(1) Notice that the project proponent has received a notice of
26applicability that indicates that the project is authorized
pursuant
27to the State Water Resources Control Board’s Order for Clean
28Water Act Section 401 General Water Quality Certification for
29Small Habitat Restoration Projects, or its equivalent at the time
30the project proponent submits the written request.
31(2) A copy of the notice of applicability.
32(3) A copy of the notice of intent provided to the State Water
33Resources Control Board or a regional water quality control board.
34(4) A description of species protection measures incorporated
35into the project design, but not already included in the notice of
36intent, to avoid and minimize impacts to potentially present species
37protected by state and federal law, such as appropriate seasonal
38work limitations and the use of qualified professionals for standard
39preconstruction surveys where protected species are potentially
40
present.
P225 1(5) The fees required pursuant to Section 1655.
2(c) Upon receipt of the notice specified in paragraph (1) of
3subdivision (b), the director shall immediately have published in
4the General Public Interest section of the California Regulatory
5Notice Register the receipt of that notice.
6(d) Within 30 days after the director has received the notice of
7applicability described in subdivision (b), the director shall
8determine whether the written request accompanying the notice
9of applicability is complete.
10(e) If the director determines within that 30-day period, based
11upon substantial evidence, that the written request is not complete,
12then the project may be authorized under Section 1652.
13(f) The director shall immediately publish the determination
14pursuant to subdivision (d) in the General Public Interest section
15of the California Regulatory Notice Register.
16(g) The project proponent shall submit the monitoring plan,
17monitoring report, and notice of completion to the department as
18required by the State Water Resources Control Board’s Orderbegin insert
forend insert
19 Clean Water Act Section 401 General Water Quality Certification
20for Small Habitat Restoration Projects, or its current equivalent at
21the time the project proponent submits the written request. The
22order or its current equivalent may include programmatic waivers
23or waste discharge requirements for small scale restoration projects.
Section 1654 of the Fish and Game Code is amended
25to read:
(a) The director’s approval of a habitat restoration or
27enhancement project pursuant to Section 1652 or 1653 shall be in
28lieu of any other permit, agreement, license, or other approval
29issued by the department, including, but not limited to, those issued
30pursuant to Chapter 6 (commencing with Section 1600) and
31Chapter 10 (commencing with Section 1900) of thisbegin delete Divisionend delete
32begin insert divisionend insert and Chapter 1.5 (commencing with Section 2050) of
33Division 3.
34(b) begin deleteNothing in this end deletebegin insertThis
end insertchapter shallbegin insert notend insert be construed as
35expanding the scope of projects requiring a permit, agreement,
36license, or other approval issued by the department.
37(c) (1) If the director determines at any time that the project is
38no longer consistent with subdivision (c) of Section 1652 or
39subdivision (b) of Section 1653, as applicable, due to a material
40change between the project as submitted and the project being
P226 1implemented or a change in the environmental circumstances in
2the area of implementation, the director shall notify the project
3proponent in writing and project implementation shall be
4suspended. Written notice from the director shall be delivered in
5person, by certified mail, or by electronic communication to the
6project proponent and shall specify the reasons why approval of
7the project was
suspended. The approval for a project shall not be
8revoked pursuant to this subdivision unless it has first been
9suspended pursuant to this subdivision.
10(2) Within 30 days of receipt of a notice of suspension, the
11project proponent may file an objection with the director. Any
12objection shall be in writing and state the reasons why the project
13proponent objects to the suspension. The project proponent may
14provide additional environmental protection measures, design
15modifications, or other evidence that the project is consistent with
16subdivision (c) of Section 1652 or subdivision (b) of Section 1653,
17as applicable, and request that the notice of suspension be lifted
18and approval granted.
19(3) The director shall revoke approval or lift the suspension of
20project approval within 30 days after receiving the project
21proponent’s objection pursuant to paragraph (2).
22(d) Pursuant to Section 818.4 of the Government Code, the
23department and any other state agency exercising authority under
24this section shall not be liable with regard to any determination or
25authorization made pursuant to this section.
Section 1745.2 of the Fish and Game Code is
27amended to read:
(a) The department shall do both of the following:
29(1) Consider permitting apiculture on department-managed
30wildlife areas, where deemed appropriate by the department.
31(2) Determine, when developing or amending its land
32management plans, the following:
33(A) If the department-managed wildlife areas, or anybegin delete portionend delete
34begin insert portionsend insert ofbegin delete theend delete those areas, are suitable for
apiculture and whether
35apiculture is consistent with the management goals and objectives
36for those areas on a temporary, seasonal, or long-term basis.
37(B) If the administration of apiculture on department-managed
38wildlife areas, where deemed appropriate by the department, is
39meeting the management goals and objectives for those areas.
P227 1(C) The appropriate use or permit fee to be assessed for
2conducting apiculture on department-managed wildlife areas.
3(b) The department, in implementing this section, may consult
4with apiculture experts, including, but not limited to, the
5Department of Food and Agriculture, the University of California,
6other academic or professional experts, and interested stakeholders,
7for permitting apiculture on department-managed wildlife areas
8consistent with the respective management goals and
objectives
9for those areas.
10(c) Moneys collected for conducting apiculture on
11department-managed wildlife areas pursuant to subparagraph (C)
12of paragraph (2) of subdivision (a) shall be deposited by the
13department into the Wildlife Restoration Fund and, upon
14appropriation by the Legislature, be used to support the
15management, maintenance, restoration, and operation of
16department-managed wildlife areas.
Section 12002 of the Fish and Game Code is
18amended to read:
(a) Unless otherwise provided, the punishment for a
20violation of this code that is a misdemeanor is a fine of not more
21than one thousand dollars ($1,000), imprisonment inbegin delete theend deletebegin insert aend insert county
22jail for not more than six months, or by both that fine and
23imprisonment.
24(b) The punishment for a violation of any of the following
25provisions is a fine of not more than two thousand dollars ($2,000),
26imprisonment inbegin delete theend deletebegin insert aend insert
county jail for not more than one year, or
27both the fine and imprisonment:
28(1) Section 1059.
29(2) Subdivision (c) of Section 4004.
30(3) Section 4600.
31(4) Paragraph (1) or (2) of subdivision (a) of Section 5650.
32(5) A first violation of Section 8670.
33(6) Section 10500.
34(7) Unless a greater punishment is otherwise provided, a
35violation subject to subdivision (a) of Section 12003.1.
36(c) Except as specified in Sections 12001 and 12010, the
37punishment for violation of Section 3503, 3503.5,
3513, or 3800
38is a fine of not more than five thousand dollars ($5,000),
39imprisonment in the county jail for not more than six months, or
40by both that fine and imprisonment.
P228 1(d) (1) A license, tag, stamp, reservation, permit, or other
2entitlement or privilege issued pursuant to this code to a defendant
3who fails to appear at a court hearing for a violation of this code,
4or who fails to pay a fine imposed pursuant to this code, shall be
5immediately suspended or revoked. The license, tag, stamp,
6reservation, permit, or other entitlement or privilege shall not be
7reinstated or renewed, and no other license, tag, stamp, reservation,
8permit, or other entitlement or privilege shall be issued to that
9person pursuant to this code, until the court proceeding is
10completed or the fine is paid.
11(2) This subdivision does not apply to any violation of Section
121052, 1059,
1170, 5650, 5653.9, 6454, 6650, or 6653.5.
The heading of Article 5 (commencing with Section
14491) of Chapter 3 of Part 1 of Division 1 of the Food and
15Agricultural Code, as added by Section 1 of Chapter 589 of the
16Statutes of 2000, is amended and renumbered to read:
17
Section 6045 of the Food and Agricultural Code is
21amended to read:
(a) The Legislature finds and declares that the plant
23killing bacterium, Xyellabegin delete Fastidiosaend deletebegin insert Fastidiosa,end insert and the resulting
24pathogen, Pierce’s disease, and its vectors present a clear and
25present danger to California’sbegin delete 60-billion-dollarend deletebegin insert sixty-billion-dollarend insert
26 grape industry, as well as to many other commodities and plant
27life.
28(b) There exists an ongoing need for at least fifteen million
29dollars
($15,000,000) annually in research and programs to combat
30Pierce’s disease and its vectors in California.
Section 6047.9 of the Food and Agricultural Code
32 is amended to read:
(a) For purposes of calculating the amount to be
34collected by the processor for purchased grapes, the assessment
35shall be based on the gross dollar value of the grapes, which is the
36gross dollar amount payable for the grapes before any deductions
37for governmental assessments and fees.
38(b) For purposes of calculating the assessment for grapes not
39purchased, the assessment shall be based on the following:
P229 1(1) The tonnage of grapes delivered less material other than
2grapes and defects or other weight adjustments deducted from
3gross weight.
4(2) The weighted average price per ton delivered basis purchased
5from all nonrelated sources for wine,
concentrate, juice, wine
6vinegar, and beverage brandy by processors, by type,begin delete varietyend delete
7begin insert
variety,end insert and reporting district where grown for the grapes delivered,
8sources as reported by the secretary pursuant to Section 55601.5
9for the immediately preceding marketing season.
Section 12996 of the Food and Agricultural Code
11 is amended to read:
(a) Every person who violates any provision of this
13division relating to pesticides, or any regulation issued pursuant
14to a provision of this division relating to pesticides, is guilty of a
15misdemeanor and upon conviction shall be punished by a fine of
16not less than five hundred dollars ($500) nor more than five
17thousand dollars ($5,000), or by imprisonment of not more than
18six months, or by both the fine and imprisonment. Upon a second
19or subsequent conviction of the same provision of this division
20relating to pesticides, a person shall be punished by a fine of not
21less than one thousand dollars ($1,000) nor more than ten thousand
22dollars ($10,000), or by imprisonment of not more than sixbegin delete monthsend delete
23begin insert
months,end insert or by both the fine and imprisonment. Each violation
24constitutes a separate offense.
25(b) Notwithstanding the penalties prescribed in subdivision (a),
26if the offense involves an intentional or negligent violation that
27created or reasonably could have created a hazard to human health
28or the environment, the convicted person shall be punished by
29imprisonment in a county jail not exceeding one year or in the
30state prison or by a fine of not less than five thousand dollars
31($5,000) nor more than fifty thousand dollars ($50,000), or by both
32the fine and imprisonment.
33(c) This section does not apply to violations of Chapter 7.5
34(commencing with Section 15300) or Section 13186.5.
Section 12999.5 of the Food and Agricultural Code
36 is amended to read:
(a) In lieu of civil prosecution by the director, the
38county agricultural commissioner may levy a civil penalty against
39a person violating Division 6 (commencing with Section 11401),
40Article 10 (commencing with Section 12971) or Article 10.5
P230 1(commencing with Section 12980) of this chapter, Section 12995,
2Article 1 (commencing with Section 14001) of Chapter 3, Chapter
33.7 (commencing with Section 14160), Chapter 7.5 (commencing
4with Section 15300), or a regulation adopted pursuant to any of
5these provisions, of not more than one thousand dollars ($1,000)
6for each violation. Any violation determined by the county
7agricultural commissioner to be a Class A violation as defined in
8Section 6130 of Title 3 of the California Code of Regulations is
9subject to a fine of not more than five thousand dollars ($5,000)
10for each violation. It
is unlawful and grounds for denial of a permit
11under Section 14008 for a person to refuse or neglect to pay a civil
12penalty levied pursuant to this section once the order is final.
13(b) If a person has received a civil penalty for pesticide drift in
14a school area subject to Section 11503.5 that results in a Class A
15violation as defined in subdivision (a), the county agricultural
16commissioner shall charge a fee, not to exceed fifty dollars ($50),
17for processing and monitoring each subsequent pesticide
18application that may pose a risk of pesticide drift made in a school
19area subject to Section 11503.5. The county agricultural
20commissioner shall continue to impose the fee for each subsequent
21application that may pose a risk of drift, until the person has
22completed 24 months without another Class A violation as defined
23in subdivision (a).
24(c) Before a civil penalty is levied, the
person charged with the
25violation shall be given a written notice of the proposedbegin delete actionend delete
26begin insert
action,end insert including the nature of the violation and the amount of the
27proposed penalty, and shall have the right to request a hearing
28within 20 days after receiving notice of the proposed action. A
29notice of the proposed action that is sent by certified mail to the
30last known address of the person charged shall be considered
31received even if delivery is refused or the notice is not accepted
32at that address. If a hearing is requested, notice of the time and
33place of the hearing shall be given at least 10 days before the date
34set for the hearing. At the hearing, the person shall be given an
35opportunity to review the county agricultural commissioner’s
36evidence and to present evidence on his or her own behalf. If a
37hearing is not timely requested, the county agricultural
38commissioner may take the action proposed without a hearing.
39(d) If the person upon whom the county agricultural
40commissioner levied a civil
penalty requested and appeared at a
P231 1hearing, the person may appeal the county agricultural
2commissioner’s decision to the director within 30 days of the date
3of receiving a copy of the county agricultural commissioner’s
4decision. The following procedures apply to the appeal:
5(1) The appeal shall be in writing and signed by the appellant
6or his or her authorized agent, state the grounds for the appeal, and
7include a copy of the county agricultural commissioner’s decision.
8The appellant shall file a copy of the appeal with the county
9agricultural commissioner at the same time it is filed with the
10director.
11(2) The appellant and the county agricultural commissioner
12may, at the time of filing the appeal or within 10 days thereafter
13or at a later time prescribed by the director, present the record of
14thebegin delete hearingend deletebegin insert
hearing,end insert
including written evidence that was submitted
15at thebegin delete hearingend deletebegin insert hearing,end insert and a written argument to the director
16stating grounds for affirming, modifying, or reversing the county
17agricultural commissioner’s decision.
18(3) The director may grant oral arguments upon application
19made at the time written arguments are filed.
20(4) If an application to present an oral argument is granted,
21written notice of the time and place for the oral argument shall be
22given at least 10 days before the date set for the oral argument.
23The times may be altered by mutual agreement of the appellant,
24the county agricultural commissioner, and the director.
25(5) The director shall decide the appeal on the record of the
26hearing, including the written evidence and the written argument
27described in paragraph (2), that he or she has received. If the
28director finds substantial evidence in the record to support the
29county agricultural commissioner’s decision, the director shall
30affirm the decision.
31(6) The director shall render a written decision within 45 days
32of the date of appeal or within 15 days of the date of oral arguments
33or as soon thereafter as practical.
34(7) On an appeal pursuant to this section, the director may affirm
35the county agricultural commissioner’s decision, modify the county
36agricultural commissioner’s decision by reducing or increasing
37the amount of the penalty levied so that it is within the director’s
38guidelines for imposing civil penalties, or reverse the county
39agricultural commissioner’s decision.begin delete Anyend deletebegin insert
Aend insert civil penalty increased
40by the director shall not be higher than that proposed in the county
P232 1agricultural commissioner’s notice of proposed action given
2pursuant to subdivision (c). A copy of the director’s decision shall
3be delivered or mailed to the appellant and the county agricultural
4commissioner.
5(8) Any person who does not request a hearing pursuant to
6subdivision (c) may not file an appeal pursuant to this subdivision.
7(9) Review of a decision of the director may be sought by the
8appellant within 30 days of the date of the decision pursuant to
9Section 1094.5 of the Code of Civil Procedure.
10(e) The county agricultural commissioner may levy a civil
11penalty pursuant to subdivisions (a), (c), and (d) against a person
12violating paragraph (1), (2), or (8) of subdivision (a)
of Section
131695 of the Labor Code, which pertains to registration with the
14county agricultural commissioner, carrying proof of that
15registration, and filing changes of address with the county
16agricultural commissioner.
17(f) After the exhaustion of the appeal and review procedures
18provided in this section, the county agricultural commissioner or
19his or her representative may file a certified copy of a final decision
20of the county agricultural commissioner that directs the payment
21of a civil penalty and, if applicable, a copy of any decision of the
22director or his or her authorized representative rendered on an
23appeal from the county agricultural commissioner’s decision and
24a copy of any order that denies a petition for a writ of
25administrative mandamus, with the clerk of the superior court of
26any county. Judgment shall be entered immediately by the clerk
27in conformity with the decision or order.begin delete No feesend deletebegin insert
Feesend insert shallbegin insert notend insert
28 be charged by the clerk of the superior court for the performance
29ofbegin delete anyend delete
official service required in connection with the entry of
30judgment pursuant to this section.
Section 13186.5 of the Food and Agricultural Code
32 is amended to read:
(a) Commencing July 1, 2016, and except as provided
34in subdivision (b), a school designee, as defined in Section 17609
35of the Education Code, and any person, including, but not
36necessarily limited to, a schoolsite orbegin insert schoolend insert district employee,
37who, in the course of his or her work, intends to apply a pesticide
38at a schoolsite subject to this article, shall annually complete a
39training course provided by the department or an agent authorized
40by the department. The training course shall include integrated
P233 1pest management and the safe use of pesticides in relation to the
2unique nature of schoolsites and children’s health.
3(b) (1) Commencing
July 1, 2016, any person hired to apply a
4pesticide at a schoolsite subject to this article shall complete at
5least a one-hour training course in integrated pest management
6and the safe use of pesticides in relation to the unique nature of
7schoolsites and children’s health before applying pesticides at a
8schoolsite subject to this article and during each subsequent
9licensing period in which the person applies a pesticide at a
10schoolsite subject to this article. The training course may be applied
11to his or her professional continuing education requirement required
12by the Structural Pest Control Board or the department.
13(2) The training course required by paragraph (1) shall be
14developed by the department and may also be developed by a
15provider approved by the Structural Pest Control Board if the
16training course has been approved by the department.
17(3) The department shall ensure
that the training course it
18develops or approves pursuant to paragraph (2) meets the
19requirements for continuing education credit required by the
20Structural Pest Control Board and the department.
Section 19227 of the Food and Agricultural Code
22 is amended to read:
(a) In addition to the license fee required pursuant to
24Section 19225, the department may charge each licensed renderer
25and collection center an additional fee necessary to cover the
26reasonable costs of administering Article 6 (commencing with
27Section 19300) and Article 6.5 (commencing with Section 19310).
28The additional fees authorized to be imposed by this sectionbegin delete mayend delete
29begin insert shallend insert not exceed three thousand dollars ($3,000) per year per each
30licensed rendering plant or collection center.
31(b) The secretary shall fix the annual fee established pursuant
32to this section and may fix
different fees for renderers and
33collection centers. The secretary shall also fix the date the fee is
34due and the method of collecting the fee. If an additional fee is
35imposed on licensed renderers pursuant to subdivision (a) and an
36additional fee is imposed on registered transporters pursuant to
37subdivision (a) of Section 19315, only one additional fee may be
38imposed on a person or firm that is both licensed as a renderer
39pursuant to Article 6 (commencing with Section 19300) and
40registered as a transporter of inedible kitchen grease pursuant to
P234 1Article 6.5 (commencing with Section 19310), which fee shall be
2the higher of the two fees.
3(c) If the fee established pursuant to this section is not paid
4within one calendar month of the date it is due, a penalty shall be
5imposed in the amount of 10 percent per annum on the amount of
6the unpaid fee.
7(d) This section shall
become inoperative on July 1, 2020, and,
8as of January 1, 2021, is repealed, unless a later enacted statute,
9that becomes operative on or before January 1, 2021, deletes or
10extends the dates on which it becomes inoperative and is repealed.
Section 55462 of the Food and Agricultural Code,
12as added by Section 5 of Chapter 651 of the Statutes of 1997, is
13repealed.
For the purposes of trading in cattle, this chapter does
15not apply to or include any person who is bonded under the federal
16Packers and Stockyards Act, 1921 (7 U.S.C. Sec. 181, et seq.) who
17is engaged in the business of buying or selling cattle.
Section 77103 of the Food and Agricultural Code
19 is repealed.
(a) Notwithstanding any other provision of this chapter,
21the following duties are imposed upon the executive committee
22of the commission, established in the commission’s bylaws, for
23the 2006 marketing year:
24(1) Continue any and all existing contracts and agreements
25necessary for the operation of the commission.
26(2) Establish the annual budget according to accepted accounting
27practices.
28(3) Establish the assessment rate not later than the first day of
29the marketing year or as soon thereafter as possible. The assessment
30rate shall not exceed the 2005 marketing year assessment rate.
31(b) In fulfilling the duties of this section, except for the
32disbursements made pursuant to Section 77086, the executive
33committee shall obtain concurrence by the secretary.
34(c) This section shall become inoperative on July 1, 2007.
Section 78579 of the Food and Agricultural Code
36 is amended to read:
(a) Unless funds are otherwise provided by the
38Secretarybegin delete ofend deletebegin insert forend insert Environmentalbegin delete Affairs pursuant to subdivision (b) begin insert Protection,end insert before
39of Section 35062 of the Public Resources Code,end delete
40the referendum vote is conducted by thebegin delete director,end deletebegin insert secretary,end insert
the
P235 1proponents of the council shall deposit with thebegin delete directorend deletebegin insert secretaryend insert
2 the amount that thebegin delete directorend deletebegin insert secretaryend insert determines is necessary to
3defray the expenses of preparing the necessary lists and information
4and conducting the referendum vote.
5(b) Any funds not used in carrying out this article shall be
6returned to the proponents of the council who deposited the funds
7with thebegin delete director.end deletebegin insert
secretary.end insert
8(c) Upon the establishment of the council, the council may
9reimburse the proponents of the council for any funds deposited
10by the proponents with thebegin delete director whichend deletebegin insert secretary thatend insert were used
11in carrying out this article, and for any legal expenses and costs
12incurred in establishing the council.
The heading of Chapter 3 (commencing with Section
14980) of Part 5 of Division 3.6 of Title 1 of the Government Code
15 is repealed.
16
Section 4420.5 of the Government Code, as added
20by Section 18 of Chapter 407 of the Statutes of 1998, is repealed.
(a) Subdivision (b) of Section 4420 shall not apply to
22any construction or renovation project undertaken by a school
23district.
24(b) The district may use owner-controlled or wrap-up insurance
25with regard to a construction or renovation project if the district
26makes the following determinations:
27(1) Prospective bidders, including contractors and
28subcontractors, meet minimum occupational safety and health
29qualifications established to bid on the project. The evaluation of
30prospective bidders shall be based on consideration of the following
31factors:
32(A) Serious and willful violations of Part 1 (commencing with
33Section 6300) of Division 5 of the Labor Code, by a contractor or
34subcontractor during the past five-year period.
35(B) The contractor’s or subcontractor’s workers’ compensation
36experience modification factor.
37(C) A contractor’s or subcontractor’s injury prevention program
38instituted pursuant to Section 3201.5 or 6401.7 of the Labor Code.
P236 1(2) The use of owner-controlled or wrap-up insurance will
2maximize the expenditure of public funds on the project in
3conjunction with the exercise of appropriate risk management.
4(c) For purposes of this section, “owner-controlled or wrap-up
5insurance” means a series of insurance policies issued to cover all
6of the contractors and subcontractors on a given project for
7purposes of general liability and workers’ compensation.
8(d) Any use of owner-controlled or wrap-up insurance pursuant
9to this section shall be subject to subparagraphs (B), (C), (D), and
10(E) of paragraph (1) of subdivision (d) of Section 4420 and
11paragraphs (2) and (3) of that subdivision.
The heading of Chapter 14 (commencing with
13Section 5970) of Division 6 of Title 1 of the Government Code,
14as added by Section 1 of Chapter 309 of the Statutes of 1996, is
15amended and renumbered to read:
16
Section 6254 of the Government Code is amended
20to read:
Except as provided in Sections 6254.7 and 6254.13, this
22chapter does not require the disclosure of any of the following
23records:
24(a) Preliminary drafts, notes, or interagency or intra-agency
25memoranda that are not retained by the public agency in the
26ordinary course of business, if the public interest in withholding
27those records clearly outweighs the public interest in disclosure.
28(b) Records pertaining to pending litigation to which the public
29agency is a party, or to claims made pursuant to Division 3.6
30(commencing with Section 810), until the pending litigation or
31claim has been finally adjudicated or otherwise settled.
32(c) Personnel, medical, or similar
files, the disclosure of which
33would constitute an unwarranted invasion of personal privacy.
34(d) begin deleteContained end deletebegin insertRecords contained end insertin or related to any of the
35following:
36(1) Applications filed with any state agency responsible for the
37regulation or supervision of the issuance of securities or of financial
38institutions, including, but not limited to, banks, savings and loan
39associations, industrial loan companies, credit unions, and
40insurance companies.
P237 1(2) Examination, operating, or condition reports prepared by,
2on behalf of, or for the use of, any state agency referred to in
3paragraph (1).
4(3) Preliminary drafts, notes, or interagency or intra-agency
5communications prepared by, on behalf of, or for the use of, any
6state agency referred to in paragraph (1).
7(4) Information received in confidence by any state agency
8referred to in paragraph (1).
9(e) Geological and geophysical data, plant production data, and
10similar information relating to utility systems development, or
11market or crop reports, that are obtained in confidence from any
12person.
13(f) Records of complaints to, or investigations conducted by,
14or records of intelligence information or security procedures of,
15the office of the Attorney General and the Department of Justice,
16the Office of Emergency Services and any state or local police
17agency, or any investigatory or security files
compiled by any other
18state or local police agency, or any investigatory or security files
19compiled by any other state or local agency for correctional, law
20enforcement, or licensing purposes. However, state and local law
21enforcement agencies shall disclose the names and addresses of
22persons involved in, or witnesses other than confidential informants
23to, the incident, the description of any property involved, the date,
24time, and location of the incident, all diagrams, statements of the
25parties involved in the incident, the statements of all witnesses,
26other than confidential informants, to the victims of an incident,
27or an authorized representative thereof, an insurance carrier against
28which a claim has been or might be made, and any person suffering
29bodily injury or property damage or loss, as the result of the
30incident caused by arson, burglary, fire, explosion, larceny,
31robbery, carjacking, vandalism, vehicle theft, or a crime as defined
32by subdivision (b) of Section 13951, unless the disclosure would
33
endanger the safety of a witness or other person involved in the
34investigation, or unless disclosure would endanger the successful
35completion of the investigation or a related investigation. However,
36begin delete nothing inend delete this divisionbegin delete shallend deletebegin insert does notend insert require the disclosure of that
37portion of those investigative files that reflects the analysis or
38conclusions of the investigating officer.
P238 1Customer lists provided to a state or local police agency by an
2alarm or security company at the request of the agency shall be
3construed to be records subject to this subdivision.
4Notwithstanding any other provision of this subdivision, state
5and local law enforcement agencies
shall make public the following
6information, except to the extent that disclosure of a particular
7item of information would endanger the safety of a person involved
8in an investigation or would endanger the successful completion
9of the investigation or a related investigation:
10(1) The full name and occupation of every individual arrested
11by the agency, the individual’s physical description including date
12of birth, color of eyes and hair, sex, height and weight, the time
13and date of arrest, the time and date of booking, the location of
14the arrest, the factual circumstances surrounding the arrest, the
15amount of bail set, the time and manner of release or the location
16where the individual is currently being held, and all charges the
17individual is being held upon, including any outstanding warrants
18from other jurisdictions and parole or probation holds.
19(2) Subject to the restrictions
imposed by Section 841.5 of the
20Penal Code, the time, substance, and location of all complaints or
21requests for assistance received by the agency and the time and
22nature of the response thereto, including, to the extent the
23information regarding crimes alleged or committed or any other
24incident investigated is recorded, the time, date, and location of
25occurrence, the time and date of the report, the name and age of
26the victim, the factual circumstances surrounding the crime or
27incident, and a general description of any injuries, property, or
28weapons involved. The name of a victim of any crime defined by
29Section 220, 236.1, 261, 261.5, 262, 264, 264.1, 265, 266, 266a,
30266b, 266c, 266e, 266f, 266j, 267, 269, 273a, 273d, 273.5, 285,
31286, 288, 288a, 288.2, 288.3 (as added by Chapter 337 of the
32Statutes of 2006), 288.3 (as added by Section 6 of Proposition 83
33of the November 7, 2006, statewide general election), 288.5, 288.7,
34289, 422.6, 422.7, 422.75, 646.9, or 647.6 of the Penal Code may
35be withheld at the
victim’s request, or at the request of the victim’s
36parent or guardian if the victim is a minor. When a person is the
37victim of more than one crime, information disclosing that the
38person is a victim of a crime defined in any of the sections of the
39Penal Code set forth in this subdivision may be deleted at the
40request of the victim, or the victim’s parent or guardian if the
P239 1victim is a minor, in making the report of the crime, or of any
2crime or incident accompanying the crime, available to the public
3in compliance with the requirements of this paragraph.
4(3) Subject to the restrictions of Section 841.5 of the Penal Code
5and this subdivision, the current address of every individual
6arrested by the agency and the current address of the victim of a
7crime,begin delete whereend deletebegin insert ifend insert
the requester declares under penalty of perjury that
8the request is made for a scholarly, journalistic, political, or
9governmental purpose, or that the request is made for investigation
10purposes by a licensed private investigator as described in Chapter
1111.3 (commencing with Section 7512) of Division 3 of the Business
12and Professions Code. However, the address of the victim of any
13crime defined by Section 220, 236.1, 261, 261.5, 262, 264, 264.1,
14265, 266, 266a, 266b, 266c, 266e, 266f, 266j, 267, 269, 273a,
15273d, 273.5, 285, 286, 288, 288a, 288.2, 288.3 (as added by
16Chapter 337 of the Statutes of 2006), 288.3 (as added by Section
176 of Proposition 83 of the November 7, 2006, statewide general
18election), 288.5, 288.7, 289, 422.6, 422.7, 422.75, 646.9, or 647.6
19of the Penal Code shall remain confidential. Address information
20obtained pursuant to this paragraphbegin delete mayend deletebegin insert
shallend insert not be used directly
21or indirectly, or furnished to another, to sell a product or service
22to any individual or group of individuals, and the requester shall
23execute a declaration to that effect under penalty of perjury.
24begin delete Nothing in thisend deletebegin insert Thisend insert paragraph shallbegin insert notend insert be construed to prohibit
25or limit a scholarly, journalistic, political, or government use of
26address information obtained pursuant to this paragraph.
27(g) Test questions, scoring keys, and other examination data
28used to administer a licensing examination, examination for
29employment, or academic examination, except as provided for in
30Chapter 3
(commencing with Section 99150) of Part 65 of Division
3114 of Title 3 of the Education Code.
32(h) The contents of real estate appraisals or engineering or
33feasibility estimates and evaluations made for or by the state or
34local agency relative to the acquisition of property, or to
35prospective public supply and construction contracts, until all of
36the property has been acquired or all of the contract agreement
37obtained. However, the law of eminent domain shall not be affected
38by this provision.
39(i) Information required from any taxpayer in connection with
40the collection of local taxes that is received in confidence and the
P240 1disclosure of the information to other persons would result in unfair
2competitive disadvantage to the person supplying the information.
3(j) Library circulation records kept for the purpose of
identifying
4the borrower of items available in libraries, and library and museum
5materials made or acquired and presented solely for reference or
6exhibition purposes. The exemption in this subdivision shall not
7apply to records of fines imposed on the borrowers.
8(k) Records, the disclosure of which is exempted or prohibited
9pursuant to federal or state law, including, but not limited to,
10provisions of the Evidence Code relating to privilege.
11(l) Correspondence of and to the Governor or employees of the
12Governor’s office or in the custody of or maintained by the
13Governor’s Legal Affairs Secretary. However, public records shall
14not be transferred to the custody of the Governor’s Legal Affairs
15Secretary to evade the disclosure provisions of this chapter.
16(m) In the custody of or maintained by the Legislative
Counsel,
17except those records in the public database maintained by the
18Legislative Counsel that are described in Section 10248.
19(n) Statements of personal worth or personal financial data
20required by a licensing agency and filed by an applicant with the
21licensing agency to establish his or her personal qualification for
22the license, certificate, or permit applied for.
23(o) Financial data contained in applications for financing under
24Division 27 (commencing with Section 44500) of the Health and
25Safety Code,begin delete whereend deletebegin insert
ifend insert an authorized officer of the California
26Pollution Control Financing Authority determines that disclosure
27of the financial data would be competitively injurious to the
28applicant and the data is required in order to obtain guarantees
29from the United States Small Business Administration. The
30California Pollution Control Financing Authority shall adopt rules
31for review of individual requests for confidentiality under this
32section and for making available to the public those portions of an
33application that are subject to disclosure under this chapter.
34(p) Records of state agencies related to activities governed by
35Chapter 10.3 (commencing with Section 3512), Chapter 10.5
36(commencing with Section 3525), and Chapter 12 (commencing
37with Section 3560) of Division 4, that reveal a state agency’s
38deliberative processes, impressions, evaluations, opinions,
39recommendations, meeting minutes, research, work products,
40
theories, or strategy, or that provide instruction, advice, or training
P241 1to employees who do not have full collective bargaining and
2representation rights under these chapters.begin delete Nothing in thisend deletebegin insert Thisend insert
3 subdivision shallbegin insert notend insert be construed to limit the disclosure duties of
4a state agency with respect to any other records relating to the
5activities governed by the employee relations acts referred to in
6this subdivision.
7(q) (1) Records of state agencies related to activities governed
8by Article 2.6 (commencing with Section 14081), Article 2.8
9(commencing with Section 14087.5), and Article 2.91
10(commencing with Section 14089) of Chapter 7
of Part 3 of
11Division 9 of the Welfare and Institutions Code, that reveal the
12special negotiator’s deliberative processes, discussions,
13communications, or any other portion of the negotiations with
14providers of health care services, impressions, opinions,
15recommendations, meeting minutes, research, work product,
16theories, or strategy, or that provide instruction, advice, or training
17to employees.
18(2) Except for the portion of a contract containing the rates of
19payment, contracts for inpatient services entered into pursuant to
20these articles, on or after April 1, 1984, shall be open to inspection
21one year after they are fully executed. If a contract for inpatient
22services that is entered into prior to April 1, 1984, is amended on
23or after April 1, 1984, the amendment, except for any portion
24containing the rates of payment, shall be open to inspection one
25year after it is fully executed. If the California Medical Assistance
26Commission enters into
contracts with health care providers for
27other than inpatient hospital services, those contracts shall be open
28to inspection one year after they are fully executed.
29(3) Three years after a contract or amendment is open to
30inspection under this subdivision, the portion of the contract or
31amendment containing the rates of payment shall be open to
32inspection.
33(4) Notwithstanding any other law, the entire contract or
34amendment shall be open to inspection by the Joint Legislative
35Audit Committee and the Legislative Analyst’s Office. The
36committee and that office shall maintain the confidentiality of the
37contracts and amendments until the time a contract or amendment
38is fully open to inspection by the public.
39(r) Records of Native American graves, cemeteries, and sacred
40places and records of Native American places,
features, and objects
P242 1described in Sections 5097.9 and 5097.993 of the Public Resources
2Code maintained by, or in the possession of, the Native American
3Heritage Commission, another state agency, or a local agency.
4(s) A final accreditation report of the Joint Commission on
5Accreditation of Hospitals that has been transmitted to the State
6Department of Health Care Services pursuant to subdivision (b)
7of Section 1282 of the Health and Safety Code.
8(t) Records of a local hospital district, formed pursuant to
9Division 23 (commencing with Section 32000) of the Health and
10Safety Code, or the records of a municipal hospital, formed
11pursuant to Article 7 (commencing with Section 37600) or Article
128 (commencing with Section 37650) of Chapter 5 of Part 2 of
13Division 3 of Title 4 of this code, that relate to any contract with
14an insurer or nonprofit hospital service plan for inpatient or
15
outpatient services for alternative rates pursuant to Section 10133
16of the Insurance Code. However, the record shall be open to
17inspection within one year after the contract is fully executed.
18(u) (1) Information contained in applications for licenses to
19carry firearms issued pursuant to Section 26150, 26155, 26170,
20or 26215 of the Penal Code by the sheriff of a county or the chief
21or other head of a municipal police department that indicates when
22or where the applicant is vulnerable to attack or that concerns the
23applicant’s medical or psychological history or that of members
24of his or her family.
25(2) The home address and telephone number of prosecutors,
26public defenders, peace officers, judges, court commissioners, and
27magistrates that are set forth in applications for licenses to carry
28firearms issued pursuant to Section 26150, 26155, 26170, or 26215
29of
the Penal Code by the sheriff of a county or the chief or other
30head of a municipal police department.
31(3) The home address and telephone number of prosecutors,
32public defenders, peace officers, judges, court commissioners, and
33magistrates that are set forth in licenses to carry firearms issued
34pursuant to Section 26150, 26155, 26170, or 26215 of the Penal
35Code by the sheriff of a county or the chief or other head of a
36municipal police department.
37(v) (1) Records of the Managed Risk Medical Insurance Board
38and the State Department of Health Care Services related to
39activities governed by Part 6.3 (commencing with Section 12695),
40Part 6.5 (commencing with Section 12700), Part 6.6 (commencing
P243 1with Section 12739.5), or Part 6.7 (commencing with Section
212739.70) of Division 2 of the Insurance Code, or Chapter 2
3(commencing with Section 15810) or Chapter 4
(commencing with
4Section 15870) of Part 3.3 of Division 9 of the Welfare and
5Institutions Code, and that reveal any of the following:
6(A) The deliberative processes, discussions, communications,
7or any other portion of the negotiations with entities contracting
8or seeking to contract with the board or the department, entities
9with which the board or the department is considering a contract,
10or entities with which the board or department is considering or
11enters into any other arrangement under which the board or the
12department provides, receives, or arranges services or
13reimbursement.
14(B) The impressions, opinions, recommendations, meeting
15minutes, research, work product, theories, or strategy of the board
16or its staff or the department or its staff, or records that provide
17instructions, advice, or training to their employees.
18(2) (A) Except for the portion of a contract that contains the
19rates of payment, contracts entered into pursuant to Part 6.3
20(commencing with Section 12695), Part 6.5 (commencing with
21Section 12700), Part 6.6 (commencing with Section 12739.5), or
22Part 6.7 (commencing with Section 12739.70) of Division 2 of the
23Insurance Code, or Chapter 2 (commencing with Section 15810)
24or Chapter 4 (commencing with Section 15870) of Part 3.3 of
25Division 9 of the Welfare and Institutions Code, on or after July
261, 1991, shall be open to inspection one year after their effective
27dates.
28(B) If a contract that is entered into prior to July 1, 1991, is
29amended on or after July 1, 1991, the amendment, except for any
30portion containing the rates of payment, shall be open to inspection
31one year after the effective date of the amendment.
32(3) Three years after a contract
or amendment is open to
33inspection pursuant to this subdivision, the portion of the contract
34or amendment containing the rates of payment shall be open to
35inspection.
36(4) Notwithstanding any other law, the entire contract or
37amendments to a contract shall be open to inspection by the Joint
38Legislative Audit Committee. The committee shall maintain the
39confidentiality of the contracts and amendments thereto, until the
P244 1contracts or amendments to the contracts are open to inspection
2pursuant to paragraph (3).
3(w) (1) Records of the Managed Risk Medical Insurance Board
4related to activities governed by Chapter 8 (commencing with
5Section 10700) of Part 2 of Division 2 of the Insurance Code, and
6that reveal the deliberative processes, discussions, communications,
7or any other portion of the negotiations with health plans, or the
8impressions, opinions,
recommendations, meeting minutes,
9research, work product, theories, or strategy of the board or its
10staff, or records that provide instructions, advice, or training to
11employees.
12(2) Except for the portion of a contract that contains the rates
13of payment, contracts for health coverage entered into pursuant to
14Chapter 8 (commencing with Section 10700) of Part 2 of Division
152 of the Insurance Code, on or after January 1, 1993, shall be open
16to inspection one year after they have been fully executed.
17(3) Notwithstanding any other law, the entire contract or
18amendments to a contract shall be open to inspection by the Joint
19Legislative Audit Committee. The committee shall maintain the
20confidentiality of the contracts and amendments thereto, until the
21contracts or amendments to the contracts are open to inspection
22pursuant to paragraph (2).
23(x) Financial data contained in applications for registration, or
24registration renewal, as a service contractor filed with the Director
25of Consumer Affairs pursuant to Chapter 20 (commencing with
26Section 9800) of Division 3 of the Business and Professions Code,
27for the purpose of establishing the service contractor’s net worth,
28or financial data regarding the funded accounts held in escrow for
29service contracts held in force in this state by a service contractor.
30(y) (1) Records of the Managed Risk Medical Insurance Board
31and the State Department of Health Care Services related to
32activities governed by Part 6.2 (commencing with Section 12693)
33or Part 6.4 (commencing with Section 12699.50) of Division 2 of
34the Insurance Code or Sections 14005.26 and 14005.27 of, or
35Chapter 3 (commencing with Section 15850) of Part 3.3 of Division
369 of, the Welfare and Institutions
Code, if the records reveal any
37of the following:
38(A) The deliberative processes, discussions, communications,
39or any other portion of the negotiations with entities contracting
40or seeking to contract with the board or the department, entities
P245 1with which the board or department is considering a contract, or
2entities with which the board or department is considering or enters
3into any other arrangement under which the board or department
4provides, receives, or arranges services or reimbursement.
5(B) The impressions, opinions, recommendations, meeting
6minutes, research, work product, theories, or strategy of the board
7or its staff, or the department or its staff, or records that provide
8instructions, advice, or training to employees.
9(2) (A) Except for the portion of a contract that contains the
10
rates of payment, contracts entered into pursuant to Part 6.2
11(commencing with Section 12693) or Part 6.4 (commencing with
12Section 12699.50) of Division 2 of the Insurance Code, on or after
13January 1, 1998, or Sections 14005.26 and 14005.27 of, or Chapter
143 (commencing with Section 15850) of Part 3.3 of Division 9 of,
15the Welfare and Institutions Code shall be open to inspection one
16year after their effective dates.
17(B) If a contract entered into pursuant to Part 6.2 (commencing
18with Section 12693) or Part 6.4 (commencing with Section
1912699.50) of Division 2 of the Insurance Code or Sections
2014005.26 and 14005.27 of, or Chapter 3 (commencing with Section
2115850) of Part 3.3 of Division 9 of, the Welfare and Institutions
22Code, is amended, the amendment shall be open to inspection one
23year after the effective date of the amendment.
24(3) Three years after a contract or amendment is
open to
25inspection pursuant to this subdivision, the portion of the contract
26or amendment containing the rates of payment shall be open to
27inspection.
28(4) Notwithstanding any other law, the entire contract or
29amendments to a contract shall be open to inspection by the Joint
30Legislative Audit Committee. The committee shall maintain the
31confidentiality of the contracts and amendments thereto until the
32contract or amendments to a contract are open to inspection
33pursuant to paragraph (2) or (3).
34(5) The exemption from disclosure provided pursuant to this
35subdivision for the contracts, deliberative processes, discussions,
36communications, negotiations, impressions, opinions,
37recommendations, meeting minutes, research, work product,
38theories, or strategy of the board or its staff, or the department or
39its staff, shall also apply to the contracts, deliberative processes,
40discussions,
communications, negotiations, impressions, opinions,
P246 1recommendations, meeting minutes, research, work product,
2theories, or strategy of applicants pursuant to Part 6.4 (commencing
3with Section 12699.50) of Division 2 of the Insurance Code or
4Chapter 3 (commencing with Section 15850) of Part 3.3 of Division
59 of the Welfare and Institutions Code.
6(z) Records obtained pursuant to paragraph (2) of subdivision
7(f) of Section 2891.1 of the Public Utilities Code.
8(aa) A document prepared by or for a state or local agency that
9assesses its vulnerability to terrorist attack or other criminal acts
10intended to disrupt the public agency’s operations and that is for
11distribution or consideration in a closed session.
12(ab) Critical infrastructure information, as defined in Section
13131(3) of Title 6 of the United States Code, that
is voluntarily
14submitted to thebegin delete California Emergency Management Agencyend deletebegin insert Office
15of Emergency Servicesend insert for use by that office, including the identity
16of the person who or entity that voluntarily submitted the
17information. As used in this subdivision, “voluntarily submitted”
18means submitted in the absence of the office exercising any legal
19authority to compel access to or submission of critical infrastructure
20information. This subdivision shall not affect the status of
21information in the possession of any other state or local
22governmental agency.
23(ac) All information provided to the Secretary of State by a
24person for the purpose of registration in the Advance Health Care
25Directive Registry, except that those records shall be released at
26the request of a health
care provider, a public guardian, or the
27registrant’s legal representative.
28(ad) The following records of the State Compensation Insurance
29Fund:
30(1) Records related to claims pursuant to Chapter 1
31(commencing with Section 3200) of Division 4 of the Labor Code,
32to the extent that confidential medical information or other
33individually identifiable information would be disclosed.
34(2) Records related to the discussions, communications, or any
35other portion of the negotiations with entities contracting or seeking
36to contract with the fund, and any related deliberations.
37(3) Records related to the impressions, opinions,
38recommendations, meeting minutes of meetings or sessions that
39are lawfully closed to the public, research, work product, theories,
40or
strategy of the fund or its staff, on the development of rates,
P247 1contracting strategy, underwriting, or competitive strategy pursuant
2to the powers granted to the fund in Chapter 4 (commencing with
3Section 11770) of Part 3 of Division 2 of the Insurance Code.
4(4) Records obtained to provide workers’ compensation
5insurance under Chapter 4 (commencing with Section 11770) of
6Part 3 of Division 2 of the Insurance Code, including, but not
7limited to, any medical claims information, policyholder
8information provided that nothing in this paragraph shall be
9interpreted to prevent an insurance agent or broker from obtaining
10proprietary information or other information authorized by law to
11be obtained by the agent or broker, and information on rates,
12pricing, and claims handling received from brokers.
13(5) (A) Records that are trade secrets pursuant to Section
146276.44,
or Article 11 (commencing with Section 1060) of Chapter
154 of Division 8 of the Evidence Code, including without limitation,
16instructions, advice, or training provided by the State Compensation
17Insurance Fund to its board members, officers, and employees
18regarding the fund’s special investigation unit, internal audit unit,
19and informational security, marketing, rating, pricing, underwriting,
20claims handling, audits, and collections.
21(B) Notwithstanding subparagraph (A), the portions of records
22containing trade secrets shall be available for review by the Joint
23Legislative Audit Committee, the Bureau of State Audits, Division
24of Workers’ Compensation, and the Department of Insurance to
25ensure compliance with applicable law.
26(6) (A) Internal audits containing proprietary information and
27the following records that are related to an internal audit:
28(i) Personal papers and correspondence of any person providing
29assistance to the fund when that person has requested in writing
30that his or her papers and correspondence be kept private and
31confidential. Those papers and correspondence shall become public
32records if the written request is withdrawn, or upon order of the
33fund.
34(ii) Papers, correspondence, memoranda, or any substantive
35information pertaining to any audit not completed or an internal
36audit that contains proprietary information.
37(B) Notwithstanding subparagraph (A), the portions of records
38containing proprietary information, or any information specified
39in subparagraph (A) shall be available for review by the Joint
40Legislative Audit Committee, the Bureau of State Audits, Division
P248 1of Workers’ Compensation, and the Department of Insurance to
2ensure compliance
with applicable law.
3(7) (A) Except as provided in subparagraph (C), contracts
4entered into pursuant to Chapter 4 (commencing with Section
511770) of Part 3 of Division 2 of the Insurance Code shall be open
6to inspection one year after the contract has been fully executed.
7(B) If a contract entered into pursuant to Chapter 4 (commencing
8with Section 11770) of Part 3 of Division 2 of the Insurance Code
9is amended, the amendment shall be open to inspection one year
10after the amendment has been fully executed.
11(C) Three years after a contract or amendment is open to
12inspection pursuant to this subdivision, the portion of the contract
13or amendment containing the rates of payment shall be open to
14inspection.
15(D) Notwithstanding any other
law, the entire contract or
16amendments to a contract shall be open to inspection by the Joint
17Legislative Audit Committee. The committee shall maintain the
18confidentiality of the contracts and amendments thereto until the
19contract or amendments to a contract are open to inspection
20pursuant to this paragraph.
21(E) This paragraph is not intended to apply to documents related
22to contracts with public entities that are not otherwise expressly
23confidential as to that public entity.
24(F) For purposes of this paragraph, “fully executed” means the
25point in time when all of the necessary parties to the contract have
26signed the contract.
27This sectionbegin delete shallend deletebegin insert doesend insert
not prevent any agency from opening its
28records concerning the administration of the agency to public
29inspection, unless disclosure is otherwise prohibited by law.
30This sectionbegin delete shallend deletebegin insert doesend insert not prevent any health facility from
31disclosing to a certified bargaining agent relevant financing
32information pursuant to Section 8 of the National Labor Relations
33Act (29 U.S.C. Sec. 158).
Section 6276.22 of the Government Code is amended
35to read:
Gambling Control Act, exemption from disclosure
37for records of the California Gambling Control Commission and
38the Department of Justice, Sections 19819 and 19821, Business
39and Professions Code.
P249 1Genetically Handicappedbegin delete Person’send deletebegin insert Personsend insert Program,
2confidentiality of factor replacement therapy contracts, Section
3125191, Health and Safety Code.
4Governor, correspondence of and to Governor and Governor’s
5office, subdivision (l), Section 6254.
6Governor, transfer of public records in control of, restrictions
7on public access, Section 6268.
8Grand jury, confidentiality of request for special counsel, Section
9936.7, Penal Code.
10Grand jury, confidentiality of transcription of indictment or
11accusation, Section 938.1, Penal Code.
12Group Insurance, public employees, Section 53202.25.
13Guardian, confidentiality of report used to check ability, Section
142342, Probate Code.
15Guardianship, confidentiality of report regarding the suitability
16of the proposed guardian, Section 1543, Probate Code.
17Guardianship, disclosure of report and recommendation
18concerning proposed guardianship of person or estate, Section
191513, Probate Code.
Section 6700 of the Government Code is amended
21to read:
(a) The holidays in this state are:
23(1) Every Sunday.
24(2) January 1st.
25(3) The third Monday in January, known as “Dr. Martin Luther
26King, Jr. Day.”
27(4) February 12th, known as “Lincoln Day.”
28(5) The third Monday in February.
29(6) March 31stbegin insert,end insert known as “Cesar Chavez Day.”
30(7) The last Monday in May.
31(8) July 4th.
32(9) The first Monday in September.
33(10) September 9th, known as “Admission Day.”
34(11) The fourth Friday in September, known as “Native
35American Day.”
36(12) The second Monday in October, known as “Columbus
37Day.”
38(13) November 11th, known as “Veterans Day.”
39(14) December 25th.
40(15) Good Friday from 12 noon until 3 p.m.
P250 1(16) (A) Every day appointed by the President or Governor for
2a
public fast, thanksgiving, or holiday.
3(B) Except for the Thursday in November appointed as
4Thanksgiving Day, this paragraph and paragraphs (3) and (6) shall
5not apply to a city, county, or district unless made applicable by
6charter, or by ordinance or resolution of the governing body
7thereof.
8(b) If the provisions of this section are in conflict with the
9provisions of a memorandum of understanding reached pursuant
10to Chapter 12 (commencing with Section 3560) of Division 4 of
11Title 1, the memorandum of understanding shall be controlling
12without further legislative action, except that if those provisions
13of a memorandum of understanding require the expenditure of
14funds, the provisions shall not become effective unless approved
15by the Legislature in the annual Budget Act.
The heading of Article 8.5 (commencing with
17Section 8601) of Chapter 7 of Division 1 of Title 2 of the 18Government Code is repealed.
19
Section 8753.6 of the Government Code is amended
24to read:
(a) The California Arts Council Contribution and
26Donations Fund is hereby created in the State Treasury to receive
27funds pursuant to subdivision (m) of Section 8753. Notwithstanding
28begin delete Government Codeend delete Section 13340, the moneys in the fund are
29continuously appropriated, without regard to fiscal years, to the
30Arts Council for the purposes of this chapter.
31(b) Any moneys in the Art Council Donations Account in the
32Special Deposit Fund shall be transferred to the California Arts
33Council Contribution and Donations Fund.
Section 11146.2 of the Government Code is amended
35to read:
Each state agency shall maintain records indicating
37the specific attendees, each attendee’s job title, and dates of their
38attendance for each orientation course offered pursuant to Section
3911146.1 for a period of not less than five years after each course
40is given. These records shall be public records subject to inspection
P251 1and copying consistent withbegin delete subdivision (a) ofend delete Section 81008 and
2otherwise subject to the California Public Records Act (Chapter
33.5 (commencing with Section 6250) of Division 7 of Title 1).
The heading of Article 8 (commencing with Section
511350) of Chapter 3.5 of Part 1 of Division 3 of Title 2 of the 6Government Code, as added by Chapter 567 of the Statutes of
71979, is repealed.
8
The heading of Article 1 (commencing with Section
1211370) of Chapter 4 of Part 1 of Division 3 of Title 2 of the 13Government Code, as added by Chapter 1425 of the Statutes of
141947, is repealed.
15
The heading of Article 6 (commencing with Section
1912099) of Chapter 1.6 of Part 2 of Division 3 of Title 2 of the 20Government Code, as added by Section 1 of Chapter 530 of the
21Statutes of 2013, is amended and renumbered to
read:
22
Section 12804 of the Government Code, as amended
26by Section 27 of Chapter 46 of the Statutes of 2012, is repealed.
The Agriculture and Services Agency is hereby renamed
28the State and Consumer Services Agency.
29The State and Consumer Services Agency consists of the
30following: the Department of General Services; the Department
31of Consumer Affairs; the Franchise Tax Board; the Public
32Employees’ Retirement System; the State Teachers’ Retirement
33System; the Department of Fair Employment and Housing; the
34California Science Center; the California Victim Compensation
35and Government Claims Board; the California African American
36Museum; the California Building and Standards Commission; the
37Alfred E. Alquist Seismic Safety Commission; and the Office of
38Privacy Protection.
Section 13312 of the Government Code is repealed.
(a) (1) Commencing with the 2008-09 fiscal year, and
2notwithstanding any other provision of law, if after the annual
3Budget Act is enacted, the Director of Finance determines that
4General Fund total available resources for the fiscal year will
5decline substantially below the estimate of General Fund total
6resources available upon which the Budget Act was based, or that
7General Fund
expenditures will increase substantially above that
8estimate of General Fund total resources available, the director
9may make reductions pursuant to subdivision (b).
10(2) For purposes of this subdivision, “total resources available”
11includes prior year balance and revenues and transfers for the fiscal
12year.
13(b) Upon making a determination as described in subdivision
14(a), the Director of Finance, in consultation with agency secretaries
15and other cabinet members, may reduce General Fund items of
16appropriation, subject to both of the following:
17(1) The Director of Finance shall not reduce, pursuant to this
18section, the amounts appropriated for any of the following:
19(A) The Legislature.
20(B) Constitutional officers.
21(C) Transfers pursuant to the Article XIX B of the California
22Constitution.
23(D) Debt service, including, but not limited to, tobacco
24settlement revenue shortfalls, payment of interest on General Fund
25loans, and interest payments to the federal government.
26(E) Health and dental benefits for annuitants.
27(F) Equity claims before the California Victim Compensation
28and Government Claims Board.
29(G) Augmentations for contingencies or emergencies.
30(H) Local assistance appropriations.
31(I) Any collective
bargaining agreement with a recognized state
32employee organization.
33(2) A General Fund state operations or capital outlay item of
34appropriation, and a program or category designated in any line
35of any schedule set forth by that appropriation, may not be reduced
36by more than 7 percent.
37(c) Notwithstanding any provision of law to the contrary, any
38cost-of-living adjustment or rate increase funded in an annual
39Budget Act shall be subject to the following conditions:
P253 1(1) If the Director of Finance determines that suspension by up
2to 120 days of the effective date of a cost-of-living adjustment or
3rate increase funded in an annual Budget Act is necessary to
4mitigate conditions that would authorize the issuance of a
5proclamation declaring a fiscal emergency pursuant to subdivision
6(f) of Section 10 of Article IV of the
California Constitution, that
7cost-of-living adjustment or rate increase shall not take effect
8during that time.
9(2) (A) If the Governor issues a proclamation declaring a fiscal
10emergency pursuant to subdivision (f) of Section 10 of Article IV
11of the California Constitution, then no cost-of-living adjustment
12or rate increase funded in the annual Budget Act for that fiscal
13year shall take effect until the Legislature passes and sends to the
14Governor a bill or bills to address the fiscal emergency.
15(B) Commencing with the 2009-10 fiscal year, the annual
16Budget Act shall include a section specifying the cost-of-living
17adjustments or rate increases included in the Budget Act or
18authorized by other statutes which may be suspended pursuant to
19this paragraph.
20(d) The Director of Finance shall report to
the Chair of the Joint
21Legislative Budget Committee and the chairs of the committees
22of each house of the Legislature that consider appropriations not
23less than 30 days prior to making reductions pursuant to this
24section. The report shall list the specific reductions, by department,
25agency, and program, and state the programmatic effects and
26impacts of each reduction.
27(e) Cost-of-living adjustments for purposes of this section shall
28not include any apportionments made to fund a cost-of-living
29adjustment to augment appropriations made pursuant to Section
302558 of the Education Code, for county office of education revenue
31limits, or Section 42238 of the Education Code, for school district
32revenue limits, nor shall it include a cost-of-living adjustment
33negotiated in a collective bargaining agreement with a recognized
34state employee organization.
35(f) Nothing within this section shall
be construed to confer any
36authority upon the Director of Finance to modify or eliminate any
37provision of existing law.
38(g) This section shall only become operative if either Senate
39Constitutional Amendment 1 or Assembly Constitutional
P254 1Amendment 1 in the 2009-10 Third Extraordinary Session is
2submitted to, and approved by, the voters at a statewide election.
Section 13956 of the Government Code is amended
4to read:
Notwithstanding Section 13955, a personbegin delete shallend deletebegin insert isend insert not
6begin delete beend delete eligible for compensation under the following conditions:
7(a) An application shall be denied if the board finds that the
8victim or, if compensation is sought by or on behalf of a derivative
9victim, either the victim or derivative victim, knowingly and
10willingly participated in the commission of the crime that resulted
11in the pecuniary loss for which compensation is being sought
12pursuant to this chapter. However, this subdivisionbegin delete shallend deletebegin insert
doesend insert not
13apply if the injury or death occurred as a direct result of a crime
14committed in violation of Section 261, 262, or 273.5 of, or a crime
15of unlawful sexual intercourse with a minor committed in violation
16of subdivision (d) of Section 261.5 of, the Penal Code.
17(b) (1) An application shall be denied if the board finds that
18the victim or, if compensation is sought by, or on behalf of, a
19derivative victim, either the victim or derivative victim failed to
20cooperate reasonably with a law enforcement agency in the
21apprehension and conviction of a criminal committing the crime.
22However, in determining whether cooperation has been reasonable,
23the board shall consider the victim’s or derivative victim’s age,
24physical condition, and psychological state, cultural or linguistic
25barriers, any compelling health and safety concerns, including, but
26not limited to, a reasonable fear of
retaliation or harm that would
27jeopardize the well-being of the victim or the victim’s family or
28the derivative victim or the derivative victim’s family, and giving
29due consideration to the degree of cooperation of which the victim
30or derivative victim is capable in light of the presence of any of
31these factors.
32(2) An application for a claim based on domestic violence shall
33not be denied solely because no police report was made by the
34victim. The board shall adopt guidelines that allow the board to
35consider and approve applications for assistance based on domestic
36violence relying upon evidence other than a police report to
37establish that a domestic violence crime has occurred. Factors
38evidencing that a domestic violence crime has occurred may
39include, but are not limited to, medical records documenting
40injuries consistent with allegations of domestic violence, mental
P255 1health records, or the fact that the victim has obtained a temporary
2or
permanent restraining order, or all of these.
3(3) An application for a claim based on human trafficking as
4defined in Section 236.1 of the Penal Code shall not be denied
5solely becausebegin delete noend deletebegin insert aend insert police report wasbegin insert notend insert made by the victim. The
6board shall adopt guidelines that allow the board to consider and
7approve applications for assistance based on human trafficking
8relying upon evidence other than a police report to establish that
9a human trafficking crime as defined in Section 236.1 of the Penal
10Code has occurred. That evidence may include any reliable
11corroborating information approved by the board, including, but
12not limited to, the following:
13(A) A Law Enforcement Agency Endorsement issued pursuant
14to Section 236.2 of the Penal Code.
15(B) A human trafficking caseworker as identified in Section
161038.2 of the Evidence Code, has attested by affidavit that the
17individual was a victim of human trafficking.
18(4) (A) An application for a claim by a military personnel victim
19based on a sexual assault by another military personnel shall not
20be denied solely because it was not reported to a superior officer
21or law enforcement at the time of the crime.
22(B) Factors that the board shall consider for purposes of
23determining if a claim qualifies for compensation include, but are
24not limited to,begin delete theend delete
evidence of the following:
25(i) Restricted or unrestricted reports to a military victim
26advocate, sexual assault response coordinator, chaplain, attorney,
27or other military personnel.
28(ii) Medical or physical evidence consistent with sexual assault.
29(iii) A written or oral report from military law enforcement or
30a civilian law enforcement agency concluding that a sexual assault
31crime was committed against the victim.
32(iv) A letter or other written statement from a sexual assault
33counselor, as defined in Section 1035.2 of the Evidence Code,
34licensed therapist, or mental health counselor, stating that the
35victim is seeking services related to the allegation of sexual assault.
36(v) A credible witness to whom the victim disclosed the details
37that a sexual assault crime occurred.
38(vi) A restraining order from a military or civilian court against
39the perpetrator of the sexual assault.
40(vii) Other behavior by the victim consistent with sexual assault.
P256 1(C) For purposes of this subdivision, the sexual assault at issue
2shall have occurred during military service, including deployment.
3(D) For purposes of this subdivision, the sexual assault may
4have been committed offbase.
5(E) For purposes of this subdivision, a “perpetrator” means an
6individual who is any of the following at the time of the sexual
7assault:
8(i) An active duty military personnel from the United States
9Army, Navy, Marine Corps, Air Force, or Coast Guard.
10(ii) A civilian employee of any military branch specified in
11clause (i), military base, or military deployment.
12(iii) A contractor or agent of a private military or private security
13company.
14(iv) A member of the California National Guard.
15(F) For purposes of this subdivision, “sexual assault” means an
16offense included in Section 261, 262, 264.1, 286, 288a, or 289 of
17the Penal Code, as of the date the act that added this paragraph
18was enacted.
19(c) An application for compensation may be denied, in whole
20or in part, if the
board finds that denial is appropriate because of
21the nature of the victim’s or other applicant’s involvement in the
22events leading to the crime or the involvement of the persons whose
23injury or death gives rise to the application. In the case of a minor,
24the board shall consider the minor’s age, physical condition, and
25psychological state, as well as any compelling health and safety
26concerns, in determining whether the minor’s application should
27be denied pursuant to this section. The application of a derivative
28victim of domestic violence under the age of 18 years of age or a
29derivative victim of trafficking under 18 years of age may not be
30denied on the basis of the denial of the victim’s application under
31this subdivision.
32(d) (1) Notwithstanding Section 13955, no person who is
33convicted of a felony may be granted compensation until that
34person has been discharged from probation or has been released
35from a correctional
institution and has been discharged from parole,
36if any. In no case shall compensation be granted to an applicant
37pursuant to this chapter during any period of time the applicant is
38held in a correctional institution.
39(2) A person who has been convicted of a felony may apply for
40compensation pursuant to this chapter at any time, but the award
P257 1of that compensation may not be considered until the applicant
2meets the requirements for compensation set forth in paragraph
3(1).
4(3) Applications of victims who are not felons shall receive
5priority in the award of compensation over an application submitted
6by a felon who has met the requirements for compensation set
7forth in paragraph (1).
The heading of Article 7 (commencing with Section
913968) of Chapter 5 of Part 4 of Division 3 of Title 2 of the 10Government Code is repealed.
11
Section 13994 of the Government Code is amended
15and renumbered to read:
Unless the context otherwise requires, the definitions
18in this section govern the construction of this chapter.
19(a) “Agency” means the Business, Transportation and Housing
20Agency.
21(b) “California-based foundation” means an organization defined
22in the Internal Revenue Code as a private foundation, which is
23incorporated in, and primarily conducts its activities within, the
24state and receives funding in whole or in substantial part from
25California-based companies.
26(c) “Collaborative research” means technological or scientific
27research that accelerates existing research toward the
28commercialization of products, processes, and services, and is
29conducted jointly or funded jointly by some or all of the following:
30(1) The private sector, including intraindustry groups,
31California-based private foundations, industry associations, and
32nonprofit cooperative associations.
33(2) The federal government.
34(3) The state.
35(4) Public or private universities, colleges, and laboratories.
36(d) “Consortia” means jointly funded or jointly operated
37nonprofit independent research and development organizations.
38
“Consortia development” means the establishment of consortia to
39manage and fund a variety of technology transfer projects within
40a specific technology or industry priority.
P258 1(e) “Industry association” is a nonprofit organization with a
2substantial presence in California whose membership consists in
3whole or in part of California-based companies, and whose funding
4is derived in whole or in part from California-based companies.
5(f) “Information technology” includes, but is not limited to, all
6electronic technology systems and services, automated information
7handling, system design and analysis, conversion of data, computer
8programming, information storage and retrieval,
9telecommunications that include voice, video, and data
10communications, requisite system controls, simulation, electronic
11commerce, and all related interactions between people and
12machines.
13(g) “Nonprofit cooperative association” means an association,
14organized and operating pursuant to either Chapter 1 (commencing
15with Section 54001) of Division 20 of the Food and Agricultural
16Code or Part 2 (commencing with Section 12200) of Division 3
17of Title 1 of the Corporations Code.
18(h) “Technology” includes, but is not limited to, the application
19of science and engineering to research and development, especially
20for industrial or commercial objectives, in sectors that include
21telecommunications, information technologies, electronics,
22biochemistry, medicine, agriculture, transportation, space, and
23aerospace.
24(i) “Technology transfer” means the movement of the results
25of basic or applied technological or scientific research to the design,
26development, and production of new or improved products,
27services, or
processes.
Section 13994.1 of the Government Code is amended
29and renumbered to read:
(a) (1) There is within the agency the Regional
32Technology Alliance Program. The intent of the regional
33technology alliances is to decentralize the delivery of services and
34resources, programs and activities for technology development,
35commercialization, application, and competitiveness at a regional
36level.
37(2) The agency may designate new regional technology alliances
38upon application to carry out activities described in this section.
39(3) The agency may establish criteria for designation that
40includes, but need not be limited to, criteria previously established
P259 1by the Defense Conversion Council pursuant to Article 3.7
2(commencing with Section 15346) of Chapter 1, as it read on
3December 31, 1998.
4(b) Each alliance shall perform the following activities:
5(1) Raise and leverage funds from multiple public and private
6sources to support technology development, commercialization,
7and application and industry competitiveness particularly in
8response to defense industry conversion and diversification.
9(2) Assist in the formation of new businesses.
10(3) Maintain an electronic network and access to databases that
11encourages business ventures.
12(4) Coordinate with activities and efforts of industry, academia,
13federal laboratories, and governments.
14(5) Recommend administrative actions or programs that could
15assist California’s defense-dependent industries to successfully
16convert to commercial markets.
17(6) Provide information about state and federal defense
18conversion programs, including, but not limited to, job training,
19economic development, industrial modernization, dual-use
20technology, new management techniques, and technology
21development and transfer.
22(7) Identify emerging industries that may include commercial
23space applications, transportation, environment, high performance
24computing and communications, biotechnology and advanced
25materials, and processing and critical existing
industries.
26(c) Each alliance may also perform, but need not be limited to,
27the following activities:
28(1) Assist in identifying businesses that could benefit from
29defense conversion programs and defense-dislocated workers who
30require employment and training opportunities.
31(2) Assist and provide coordination in determining job
32opportunities within and outside of the defense industry for which
33displaced workers could be retrained and placed.
34(3) Serve as a forum for industrywide networking linking
35producers, suppliers, and consumers.
36(4) Assist individual businesses and industry consortia in
37applying for state and federal defense conversion program funds.
38(5) Provide information and assistance in upgrading individual
39businesses and industrywide production and management
40processes.
P260 1(6) Provide information on available state and federal resources
2to aid businesses and workers affected by defense spending
3reductions, base closures, plant closures, and layoffs, to foster
4long-term economic vitality, industrial growth, and job
5opportunities.
6(d) Each alliance is encouraged to develop activities that achieve
7the following results:
8(1) Creation and retention of jobs.
9(2) Creation of new businesses.
10(3) Development of new commercial or dual-use products.
11(4) Establishment of industry partnerships and consortia.
12(5) Demonstration of productivity enhancement such as return
13on investment, reduced cost, employee training, and upgrades.
14(6) Establishment of public and private partnerships.
15(7) Commitment of industry support, participation, and capital.
16(8) Leverage of state funds.
17(9) Loan repayment ratio.
18(10) Participation of small businesses and minority-, women-,
19and disabled veteran-owned businesses.
20(11) Workforce training.
21(e) The agency shall be authorized to enter into a contract for
22services with any alliance to provide services to the office. These
23contracts shall be sole source contracts, and exempt from the
24competitive bid process.
25(f) During the first two years following selection of an alliance,
26the alliance shall monitor the performance of any application
27funded pursuant to Sectionbegin delete 13994.2,end deletebegin insert 13998.2,end insert and each invoice
28for payment shall be reviewed and approved by the alliance, but
29the contract for services shall be directly between the agency and
30the entity receiving grant funding. Commencing with the third
31year of designation, any alliance with procedures and processes
32approved by the agency shall be
authorized to directly contract
33with grant recipients. The agency shall audit these grants on a
34regular basis.
Section 13994.2 of the Government Code is amended
36and renumbered to read:
(a) There is within the agency the Challenge Grant
39Program, consisting of technology transfer grants and defense
40industry conversion and diversification grants. Challenge grant
P261 1projects funded shall include, but not be limited to, the following:
2defense industry conversion and diversification, access to ongoing
3research and research findings, exchange or transfer of personnel
4and research support services, including capital outlay, consortia
5development, and collaborative research.
6(b) All funds appropriated or received by the
Challenge Grant
7Program shall administratively be divided into either the
8Technology Transfer Grant Program or the Defense Industry
9Conversion and Diversification Program. Funding awards for the
10Technology Transfer Grant Program shall be made pursuant to the
11requirements set forth in Sectionsbegin delete 13994.3 and 13994.6end deletebegin insert 13998.3
12and 13998.6end insert.
13(c) The agency shall award grants based upon a competitive
14application process addressing the project’s eligibility and ability
15to fulfill the goals of the program.
16(d) The agency shall report on this program to the Governor
17and the Legislature.
Section 13994.3 of the Government Code is amended
19and renumbered to read:
(a) An eligible technology transfer or defense industry
22conversion and diversification project shall, at least, do all of the
23following:
24(1) Identify the sources of funding for the entire project.
25(2) Not supplant other funding.
26(3) Demonstrate that a significant portion of the project will be
27undertaken in California.
28(b) In addition
to the requirements contained in subdivision (a),
29a defense industry conversion and diversification project shall not
30receive more than 25 percent of the total project costs requested
31in the proposal.
32(c) In addition to the requirements contained in subdivision (a),
33a technology transfer project shall:
34(1) Represent a technology or industry, or both, targeted in the
35application.
36(2) Include a significant amount of matching contributions from
37either of the following:
38(A) A private sector company or companies.
P262 1(B) A California-based foundation or foundations, an industry
2association or associations, or a nonprofit cooperative association
3or associations.
4(3) Include either of the following:
5(A) A private sector company or companies that have significant
6operations in the state.
7(B) A California-based foundation or foundations, an industry
8association or associations, or a nonprofit cooperative association
9or associations.
Section 13994.4 of the Government Code is amended
11and renumbered to read:
The technology transfer grantee shall not incur
14expenses to be paid with grant funds without evidence of a
15workable agreement between the parties participating in the project
16that includes at least both of the following:
17(a) A resolution of the intellectual property rights relative to the
18project.
19(b) A direct and ongoing involvement of the public and private
20sectors, when applicable in the project.
Section 13994.5 of the Government Code is amended
22and renumbered to read:
(a) In awarding technology transfer grants, the agency
25shall consider the following:
26(1) The likelihood of commercialization of a product, service,
27or process.
28(2) The potential impact on the state’s economy.
29(3) The cost-effectiveness of the project.
30(4) The importance of state funding for the viability of the
31project.
32(5) Cost sharing by other participants.
33(6) The involvement of small businesses and minority-, disabled
34veteran-, and women-owned businesses.
35(7) Projects that will result in a prototype by the end of the grant
36period.
37(8) Other criteria that the agency determines are consistent with
38the purposes of the program.
P263 1(b) The agency shall target industries and technologies with a
2potential for enhancing the California economy, and shall fund
3projects within those industries and utilizing those technologies.
Section 13994.6 of the Government Code is amended
5and renumbered to read:
Technology transfer projects may include reasonable
8overhead costs incurred by a research institute and related to the
9project that shall not exceed the allowable federal overhead costs
10for research. All other projects may include any costs authorized
11by the principal funding agency, and not precluded by state
12requirements.
Section 13994.7 of the Government Code is amended
14and renumbered to read:
Except for defense industry conversion and
17diversification projects, only a public agency or a not-for-profit
18or nonprofit organization shall receive funds under this chapter.
19Any person or entity is authorized to receive a defense industry
20conversion and diversification grant.
Section 13994.8 of the Government Code is amended
22and renumbered to read:
(a) The agency may obtain scientific and
25technological expertise as needed to provide advice and input on
26the program, the establishment of targeted technologies and
27industries, the review of grant applications, and the review of
28project performance.
29(b) The agency may award funds over a multiyear period to a
30grantee without requiring the grantee to reapply, so long as the
31funds in multiple years are utilized for the same project originally
32funded.
Section 13994.9 of the Government Code is amended
34and renumbered to read:
(a) Notwithstanding Sections 13994.2, 13994.3,
3713994.4, and 13994.5, and the regulations implementing this
38chapter, the secretary may award discretionary technology transfer
39grants totaling not more than 5 percent or one hundred thousand
P264 1dollars ($100,000), whichever is greater, of the funds appropriated
2each year for this program.
3(b) Notwithstanding Sectionsbegin delete 13994.2, 13994.3,
13994.4,
413994.5,end delete
5of this section, the secretary may award up to 15 percent of the
6funds appropriated for a given fiscal year for consortia development
7projects that do not have private sector match but will have private
8sector match within six months from the date of the award of
9funding. For purposes of this subdivision, “private sector match”
10means a cash or in-kind contribution available for expenditure or
11use to a consortium development project. If, after six months,begin delete noend delete
12begin insert aend insert private sector match isbegin insert notend insert available, funding under the program
13
shall cease and all moneys previously received shall be returned
14to the state.
Section 13994.10 of the Government Code is
16amended and renumbered to read:
(a) In order to carry out this chapter, there is hereby
19created in the State Treasury the California Competitive
20Technology Fund.
21(b) The fund shall receive state funds appropriated to it,
22contributions from nonstate sources, reimbursements, federal funds,
23and interest that accrues to the moneys in the fund pursuant to
24subdivision (c).
25(c) The Treasurer shall invest moneys contained in the fund not
26needed to meet current obligations in the same manner as other
27
public funds are invested.
28(d) Notwithstanding Section 13340, all moneys in the fund are
29continuously appropriated without regard to fiscal years to the
30agency for the purposes of this chapter, and for the purposes for
31which moneys were provided. Except for state funds appropriated
32to, or transferred into, the fund for local assistance, moneys in the
33fund, including all interest, may be spent for support.
Section 13994.11 of the Government Code is
35amended and renumbered to read:
The agency shall report on this program to the
38Governor and the Legislature.
Section 13994.12 of the Government Code is
40amended and renumbered to read:
There is hereby established within the agency the
3Technology Planning Program. The program shall provide grants
4and technical assistance to California nonprofit organizations and
5public entities working within specific industries to identify
6conversion or expansion projects. Grants may be awarded in the
7areas of strategic planning and strategic alliances. The program
8shall award grants based upon a competitive application process
9addressing the project’s eligibility, a review of the proposal’s
10scientific and technological aspects, and ability to fulfill goals of
11the program. Priority shall be given to those
projects with the
12identified support of industry representatives, matching funding,
13projects likely to receive federal funds requiring matching funds,
14and any other criteria determined by the agency. A project example
15is a joint effort to develop and commercialize defense-related
16technologies by federal laboratories, universities, and companies
17in close geographical proximity.
Section 14254.5 of the Government Code is
19repealed.
“Department,” as used in this chapter, means (a) the
21Department of Water Resources as to any project under the
22jurisdiction of that department, (b) the Department of General
23Services as to any project under the jurisdiction of that department,
24(c) the Department of Boating and Waterways as to any project
25under the jurisdiction of that department pursuant to Article 2.5
26(commencing with Section 65) of Chapter 2 of Division 1 of the
27
Harbors and Navigation Code, (d) the Department of Corrections
28with respect to any project under its jurisdiction pursuant to Chapter
2911 (commencing with Section 7000) of Title 7 of Part 3 of the
30Penal Code, and (e) the Department of Transportation as to all
31other projects.
32“Director,” as used in this chapter, means the director of each
33department as defined herein respectively.
Section 14670.2 of the Government Code, as added
35by Section 2 of Chapter 681 of the Statutes of 2007, is amended
36and renumbered to read:
(a) Notwithstanding any other provision of law, the
39Director of General Services, with the consent of the Department
40of Motor Vehicles, may lease or exchange, if the director deems
P266 1the leasing or exchanging to be in the best interest of the state, for
2a term of years, as determined by the director, and for fair market
3value, all or portions of parcels of real property, that are acquired
4and used by the state for the benefit of the Department of Motor
5Vehicles, as described in subdivision (b), for the purpose of
6developing mixed public and private use facilities, including
7adequate parking
for the Department of Motor Vehicles field office,
8as determined by that department, subject to all of the following
9conditions:
10(1) All proceeds from the lease or exchange of the Department
11of Motor Vehicles property shall be deposited into the Motor
12Vehicle Account in the State Transportation Fund and shall be
13available for expenditure by the Department of Motor Vehicles.
14(2) Each lease shall provide that the lessee may sublease for
15commercial, retail or residential uses that portion of the developed
16property that is not required for use of the state.
17(3) A mixed-use facility developed pursuant to this section shall
18be located at the current state-owned site unless there are mitigating
19circumstances requiring relocation. If relocation does become
20necessary, the replacement facility shall be located within the
21
geographic area that serves the current customer base.
22(b) For purposes of this section, the following parcels of real
23properties may be leased or exchanged pursuant to subdivision
24(a):
25(1) A parcel of real property located at 1377 Fell Street, San
26Francisco.
27(2) 3960 Normal Street, San Diego, provided that any lease or
28exchange of property shall include a condition that a local farmer’s
29market may continue to conduct regular business.
30(3) 8629 Hellman Avenue, Rancho Cucamonga.
31(c) The Department of General Services and the Department
32of Motor Vehicles, jointly, shall notify the Joint Legislative Budget
33Committee when the Department of General Services, with the
34consent of the Department
of Motor Vehicles, enters into any lease
35for a period of 30 years or more and shall report to the committee
36the terms and conditions of any lease at least 45 days prior to
37entering into that lease.
38(d) Any lease or exchange of properties carried out pursuant to
39this section shall be for no less than fair market value and upon
40terms and conditions that the Director of General Services
P267 1determines to be in the best interest of the state. Compensation for
2the property may include land, improvements, money, or any
3combination thereof.
4(e) The Department of General Services shall be reimbursed
5for any cost or expense incurred in the disposition or lease of any
6parcels described in this section by the Department of Motor
7Vehicles or from the proceeds of the lease or exchange of those
8parcels.
9(f) begin deleteNone of the end deletebegin insertThe
end insertproperties identified in this sectionbegin delete shall beend delete
10begin insert are notend insert subject to Section 11011.1 or Article 8 (commencing with
11Section 54220) of Chapter 5 of Part 1 of Division 2 of Title 5, and
12the properties shall be or have been offered to the public through
13a competitive process determined by the director to be in the best
14interest of the state.
The heading of Article 18 (commencing with Section
1614717) of Chapter 2 of Part 5.5 of Division 3 of Title 2 of the 17Government Code is amended and renumbered to read:
18
The heading of Chapter 4 (commencing with Section
2214730) of Part 5.5 of Division 3 of Title 2 of the Government Code
23 is repealed.
24
Section 14829.2 of the Government Code is
28repealed.
This article shall remain in effect until January 1,
301988, and as of that date is repealed, unless a later enacted statute,
31which is chaptered before January 1, 1988, deletes or extends that
32date, or unless the Director of General Services determines that as
33of December 1, 1987, the programs established by this article are
34self-supporting and notifies the Joint Legislative Budget Committee
35of that determination.
Section 15155 of the Government Code is amended
37to read:
The committee shall consist of representatives from
39the following organizations:
40(1)
end delete
P268 1begin insert(a)end insert Two representatives from thebegin insert Californiaend insert Peace Officers’
2Associationbegin delete of the State of Californiaend delete.
3(2)
end delete
4begin insert(b)end insert One representative from the California State Sheriffs’
5Association.
6(3)
end delete7begin insert(c)end insert One representative from the League of California Cities.
8(4)
end delete
9begin insert(d)end insert One representative from the
County Supervisors Association
10of California.
11(5)
end delete12begin insert(e)end insert One representative from the Department of Justice.
13(6)
end delete14begin insert(f)end insert One representative from the Department of Motor Vehicles.
15(7)
end delete16begin insert(g)end insert One representative from the Office of Emergency Services.
17(8)
end delete
18begin insert(h)end insert One representative from thebegin insert Department of theend insert California
19Highway Patrol.
20(9)
end delete
21begin insert(i)end insert One representative from the California Police Chiefs
22Association.
Section 15814.22 of the Government Code is
24amended to read:
The Department of General Services, in consultation
26with thebegin delete Californiaend deletebegin insert Stateend insert Energy Resources Conservation and
27Development Commission and other state agencies and
28departments, shall develop a multiyear plan, to be updated
29biennially, with the goal of exploiting all practicable and
30cost-effective energy efficiency measures in state facilities. The
31department shall coordinate plan implementation efforts, and make
32recommendations to the Governor and the Legislature to achieve
33energy efficiency goals for state facilities.
Section 16183 of the Government Code is amended
35to read:
(a) begin delete(1)end deletebegin delete end deleteFrom the time a payment is made pursuant to
37Section 16180, the amount of that payment shall bear interest at a
38rate (not compounded), determined as follows:
39(1) Beginning July 1, 2016, the rate of interest shall be 7 percent
40per annum.
P269 1(2) The Controller shall establish an adjusted rate of interest for
2the purpose of this subdivision not later than July 15th of any year
3if the effective annual yield of the Pooled Money Investment
4Account for the prior fiscal year is at least a full percentage point
5more or less than
the interest rate which is then in effect. The
6adjusted rate of interest shall be equal per annum to the effective
7annual yield earned in the prior fiscal year by the Pooled Money
8Investment Account rounded to the nearest full percent, and shall
9become effective for new deferrals, beginning on July 1, 1984,
10and on July 1 of each immediately succeeding year, until June 30,
112016.
12(3) The rate of interest provided pursuant to this subdivision for
13the first fiscal year commencing after payment is made pursuant
14to Section 16180 shall apply for that fiscal year and each fiscal
15year thereafter until these postponed property taxes are repaid.
16(b) The interest provided for in subdivision (a) shall be applied
17beginning the first day of the month following the month in which
18that payment is made and continuing on the first day of each month
19thereafter until that amount is paid. In the event
that any payments
20are applied, in any month, to reduce the amount paid pursuant to
21Section 16180, the interest provided for herein shall be applied to
22the balance of that amount beginning on the first day of the
23following month.
24(c) In computing interest in accordance with this section,
25fractions of a cent shall be disregarded.
26(d) For the purpose of this section, the time a payment is made
27shall be deemed to be the time a certificate of eligibility is
28countersigned by the tax collector or the delinquency date of the
29respective tax installment, whichever is later.
30(e) The Controller shall include on forms supplied to claimants
31pursuant to Sections 20621, 20630.5, 20639.9, 20640.9, and 20641
32of the Revenue and Taxation Code, a statement of the interest rate
33which shall apply to amounts postponed for the fiscal year to
which
34the form applies.
Article 12 (commencing with Section 16429.30) of
36Chapter 2 of Part 2 of Division 4 of Title 2 of the Government
37Code is repealed.
Section 17581.6 of the Government Code is amended
39to read:
(a) Funding apportioned pursuant to this section shall
2constitute reimbursement pursuant to Section 6 of Article XIII B
3of the California Constitution for the performance of any state
4mandates included in the statutes and executive orders identified
5in subdivision (e).
6(b) Any school district, county office of education, or charter
7school may elect to receive block grant funding pursuant to this
8section.
9(c) (1) A school district, county office of education, or charter
10school that elects to receive block grant funding pursuant to this
11section in a given fiscal year shall submit a letter requesting
12funding to the Superintendent of Public Instruction on or
before
13August 30 of that fiscal year.
14(2) The Superintendent of Public Instruction shall, in the month
15of November of each year, apportion block grant funding
16appropriated pursuant to Item 6110-296-0001 of Section 2.00 of
17the annual Budget Act to all school districts, county offices of
18education, and charter schools that submitted letters requesting
19funding in that fiscal year according to the provisions of that item.
20(3) A school district or county office of education that receives
21block grant funding pursuant to this section shall not be eligible
22to submit claims to the Controller for reimbursement pursuant to
23Section 17560 for any costs of any state mandates included in the
24statutes and executive orders identified in subdivision (e) incurred
25in the same fiscal year during which the school district or county
26office of education received funding pursuant to this section.
27(d) Block grant funding apportioned pursuant to this section is
28subject to annual financial and compliance audits required by
29Section 41020 of the Education Code.
30(e) Block grant funding apportioned pursuant to this section is
31specifically intended to fund the costs of the following programs
32and activities:
33(1) Academic Performance Index (01-TC-22; Chapter 3 of the
34Statutes of 1999, First Extraordinary Session; and Chapter 695 of
35the Statutes of 2000).
36(2) Agency Fee Arrangements (00-TC-17 and 01-TC-14;
37Chapter 893 of the Statutes of 2000 and Chapter 805 of the Statutes
38of 2001).
P271 1(3) AIDS Instruction and AIDS Prevention Instruction (CSM
24422, 99-TC-07, and 00-TC-01; Chapter 818 of the
Statutes of
31991; and Chapter 403 of the Statutes of 1998).
4(4) California State Teachers’ Retirement System (CalSTRS)
5Service Credit (02-TC-19; Chapter 603 of the Statutes of 1994;
6Chapters 383, 634, and 680 of the Statutes of 1996; Chapter 838
7of the Statutes of 1997; Chapter 965 of the Statutes of 1998;
8Chapter 939 of the Statutes of 1999; and Chapter 1021 of the
9Statutes of 2000).
10(5) Caregiver Affidavits (CSM 4497; Chapter 98 of the Statutes
11of 1994).
12(6) Charter Schools I, II, and III (CSM 4437, 99-TC-03, and
1399-TC-14; Chapter 781 of the Statutes of 1992; Chapters 34 and
14673 of the Statutes of 1998; Chapter 34 of the Statutes of 1998;
15and Chapter 78 of the Statutes of 1999).
16(7) Charter Schools IV (03-TC-03; Chapter 1058 of the Statutes
17of
2002).
18(8) Child Abuse and Neglect Reporting (01-TC-21: Chapters
19640 and 1459 of the Statutes of 1987; Chapter 132 of the Statutes
20of 1991; Chapter 459 of the Statutes of 1992; Chapter 311 of the
21Statutes of 1998; Chapter 916 of the Statutes of 2000; and Chapters
22133 and 754 of the Statutes of 2001).
23(9) Collective Bargaining (CSM 4425; Chapter 961 of the
24Statutes of 1975).
25(10) Comprehensive School Safety Plans (98-TC-01 and
2699-TC-10; Chapter 736 of the Statutes of 1997; Chapter 996 of
27the Statutes of 1999; and Chapter 828 of the Statutes of 2003).
28(11) Consolidation of Annual Parent Notification/Schoolsite
29Discipline Rules/Alternative Schools (CSM 4488, CSM 4461,
3099-TC-09, 00-TC-12, 97-TC-24, CSM 4453, CSM 4474, CSM
314462; Chapter 448 of the Statutes
of 1975; Chapter 965 of the
32Statutes of 1977; Chapter 975 of the Statutes of 1980; Chapter 469
33of the Statutes of 1981; Chapter 459 of the Statutes of 1985;
34Chapters 87 and 97 of the Statutes of 1986; Chapter 1452 of the
35Statutes of 1987; Chapters 65 and 1284 of the Statutes of 1988;
36Chapter 213 of the Statutes of 1989; Chapters 10 and 403 of the
37Statutes of 1990; Chapter 906 of the Statutes of 1992; Chapter
381296 of the Statutes of 1993; Chapter 929 of the Statutes of 1997;
39Chapters 846 and 1031 of the Statutes of 1998; Chapter 1 of the
40Statutes of 1999, First Extraordinary Session; Chapter 73 of the
P272 1Statutes of 2000; Chapter 650 of the Statutes of 2003; Chapter 895
2of the Statutes of 2004; and Chapter 677 of the Statutes of 2005).
3(12) Consolidation of Law Enforcement Agency Notification
4and Missing Children Reports (CSM 4505; Chapter 1117 of the
5Statutes of 1989 and 01-TC-09; Chapter 249 of the Statutes of
61986; and Chapter 832 of the
Statutes of 1999).
7(13) Consolidation of Notification to Teachers: Pupils Subject
8to Suspension or Expulsion I and II, and Pupil Discipline Records
9(00-TC-10 and 00-TC-11; Chapter 345 of the Statutes of 2000).
10(14) County Office of Education Fiscal Accountability Reporting
11(97-TC-20; Chapters 917 and 1452 of the Statutes of 1987;
12Chapters 1461 and 1462 of the Statutes of 1988; Chapter 1372 of
13the Statutes of 1990; Chapter 1213 of the Statutes of 1991; Chapter
14323 of the Statutes of 1992; Chapters 923 and 924 of the Statutes
15of 1993; Chapters 650 and 1002 of the Statutes of 1994; and
16Chapter 525 of the Statutes of 1995).
17(15) Criminal Background Checks (97-TC-16; Chapters 588
18and 589 of the Statutes of 1997).
19(16) Criminal Background Checks II (00-TC-05;
Chapters 594
20and 840 of the Statutes of 1998; and Chapter 78 of the Statutes of
211999).
22(17) Developer Fees (02-TC-42; Chapter 955 of the Statutes of
231977; Chapter 282 of the Statutes of 1979; Chapter 1354 of the
24Statutes of 1980; Chapter 201 of the Statutes of 1981; Chapter 923
25of the Statutes of 1982; Chapter 1254 of the Statutes of 1983;
26Chapter 1062 of the Statutes of 1984; Chapter 1498 of the Statutes
27of 1985; Chapters 136 and 887 of the Statutes of 1986; and Chapter
281228 of the Statutes of 1994).
29(18) Differential Pay and Reemployment (99-TC-02; Chapter
3030 of the Statutes of 1998).
31(19) Expulsion of Pupil: Transcript Cost for Appeals (SMAS;
32Chapter 1253 of the Statutes of 1975).
33(20) Financial and Compliance Audits (CSM 4498 and CSM
344498-A; Chapter
36 of the Statutes of 1977).
35(21) Graduation Requirements (CSM 4181; Chapter 498 of the
36Statutes of 1983).
37(22) Habitual Truants (CSM 4487 and CSM 4487-A; Chapter
381184 of the Statutes of 1975).
P273 1(23) High School Exit Examination (00-TC-06; Chapter 1 of
2the Statutes of 1999, First Extraordinary Session; and Chapter 135
3of the Statutes of 1999).
4(24) Immunization Records (SB 90-120; Chapter 1176 of the
5Statutes of 1977).
6(25) Immunization Records--Hepatitis B (98-TC-05; Chapter
7325 of the Statutes of 1978; Chapter 435 of the Statutes of 1979;
8Chapter 472 of the Statutes of 1982; Chapter 984 of the Statutes
9of 1991; Chapter 1300 of the Statutes of 1992; Chapter 1172 of
10the Statutes of 1994;
Chapters 291 and 415 of the Statutes of 1995;
11Chapter 1023 of the Statutes of 1996; and Chapters 855 and 882
12of the Statutes of 1997).
13(26) Interdistrict Attendance Permits (CSM 4442; Chapters 172
14and 742 of the Statutes of 1986; Chapter 853 of the Statutes of
151989; Chapter 10 of the Statutes of 1990; and Chapter 120 of the
16Statutes of 1992).
17(27) Intradistrict Attendance (CSM 4454; Chapters 161 and 915
18of the Statutes of 1993).
19(28) Juvenile Court Notices II (CSM 4475; Chapters 1011 and
201423 of the Statutes of 1984; Chapter 1019 of the Statutes of 1994;
21and Chapter 71 of the Statutes of 1995).
22(29) Notification of Truancy (CSM 4133; Chapter 498 of the
23Statutes of 1983; Chapter 1023 of the Statutes of 1994; and Chapter
2419 of the Statutes of 1995).
25(30) Parental Involvement Programs (03-TC-16; Chapter 1400
26of the Statutes of 1990; Chapters 864 and 1031 of the Statutes of
271998; Chapter 1037 of the Statutes of 2002).
28(31) Physical Performance Tests (96-365-01; Chapter 975 of
29the Statutes of 1995).
30(32) Prevailing Wage Rate (01-TC-28; Chapter 1249 of the
31Statutes of 1978).
32(33) Public Contracts (02-TC-35; Chapter 1073 of the Statutes
33of 1985; Chapter 1408 of the Statutes 1988; Chapter 330 of the
34Statutes of 1989; Chapter 1414 of the Statutes of 1990; Chapter
35321 of the Statutes of 1990; Chapter 799 of the Statutes of 1992;
36and Chapter 726 of the Statutes of 1994).
37(34) Pupil Health Screenings (CSM 4440; Chapter 1208 of the
38Statutes of
1976; Chapter 373 of the Statutes of 1991; and Chapter
39750 of the Statutes of 1992).
P274 1(35) Pupil Promotion and Retention (98-TC-19; Chapter 100
2of the Statutes of 1981; Chapter 1388 of the Statutes of 1982;
3Chapter 498 of the Statutes of 1983; Chapter 1263 of the Statutes
4of 1990; and Chapters 742 and 743 of the Statutes of 1998).
5(36) Pupil Safety Notices (02-TC-13; Chapter 498 of the Statutes
6of 1983; Chapter 482 of the Statutes of 1984; Chapter 948 of the
7Statutes of 1984; Chapter 196 of the Statutes of 1986; Chapter 332
8of the Statutes of 1986; Chapter 445 of the Statutes of 1992;
9Chapter 1317 of the Statutes of 1992; Chapter 589 of the Statutes
10of 1993; Chapter 1172 of the Statutes of 1994; Chapter 1023 of
11the Statutes of 1996; and Chapter 492 of the Statutes of 2000).
12(37) Pupil Expulsions (CSM 4455; Chapter
1253 of the Statutes
13of 1975; Chapter 965 of the Statutes of 1977; Chapter 668 of the
14Statutes of 1978; Chapter 318 of the Statutes of 1982; Chapter 498
15of the Statutes of 1983; Chapter 622 of the Statutes of 1984;
16Chapter 942 of the Statutes of 1987; Chapter 1231 of the Statutes
17of 1990; Chapter 152 of the Statutes of 1992; Chapters 1255, 1256,
18and 1257 of the Statutes of 1993; and Chapter 146 of the Statutes
19of 1994).
20(38) Pupil Expulsion Appeals (CSM 4463; Chapter 1253 of the
21Statutes of 1975; Chapter 965 of the Statutes of 1977; Chapter 668
22of the Statutes of 1978; and Chapter 498 of the Statutes of 1983).
23(39) Pupil Suspensions (CSM 4456; Chapter 965 of the Statutes
24of 1977; Chapter 668 of the Statutes of 1978; Chapter 73 of the
25Statutes of 1980; Chapter 498 of the Statutes of 1983; Chapter 856
26of the Statutes of 1985; and Chapter 134 of the Statutes of 1987).
27(40) School Accountability Report Cards (97-TC-21, 00-TC-09,
2800-TC-13, and 02-TC-32; Chapter 918 of the Statutes of 1997;
29Chapter 912 of the Statutes of 1997; Chapter 824 of the Statutes
30of 1994; Chapter 1031 of the Statutes of 1993; Chapter 759 of the
31Statutes of 1992; and Chapter 1463 of the Statutes of 1989).
32(41) School District Fiscal Accountability Reporting (97-TC-19;
33Chapter 100 of the Statutes of 1981; Chapter 185 of the Statutes
34of 1985; Chapter 1150 of the Statutes of 1986; Chapters 917 and
351452 of the Statutes of 1987; Chapters 1461 and 1462 of the
36Statutes of 1988; Chapter 525 of the Statutes of 1990; Chapter
371213 of the Statutes of 1991; Chapter 323 of the Statutes of 1992;
38Chapters 923 and 924 of the Statutes of 1993; Chapters 650 and
391002 of the Statutes of 1994; and Chapter 525 of the Statutes of
401995).
P275 1(42) School District Reorganization (98-TC-24; Chapter 1192
2of the Statutes of 1980; and Chapter 1186 of the Statutes of 1994).
3(43) Student Records (02-TC-34; Chapter 593 of the Statutes
4of 1989; Chapter 561 of the Statutes of 1993; Chapter 311 of the
5Statutes of 1998; and Chapter 67 of the Statutes of 2000).
6(44) The Stull Act (98-TC-25; Chapter 498 of the Statutes of
71983; and Chapter 4 of the Statutes of 1999).
8(45) Threats Against Peace Officers (CSM 96-365-02; Chapter
91249 of the Statutes of 1992; and Chapter 666 of the Statutes of
101995).
11(46) Uniform Complaint Procedures (03-TC-02; Chapter 1117
12of the Statutes of 1982; Chapter 1514 of the Statutesbegin insert
ofend insert 1988; and
13Chapter 914 of the Statutes of 1998).
14(47) Williams Case Implementation I, II, and III (05-TC-04,
1507-TC-06, and 08-TC-01; Chapters 900, 902, and 903 of the
16Statutes of 2004; Chapter 118 of the Statutes of 2005; Chapter 704
17of the Statutes of 2006; and Chapter 526 of the Statutes of 2007).
18(48) Pupil Expulsions II, Pupil Suspensions II, and Educational
19Services Plan for Expelled Pupils (96-358-03, 03A, 98-TC-22,
2001-TC-18, 98-TC-23, 97-TC-09; Chapters 972 and 974 of the
21Statutes of 1995; Chapters 915, 937, and 1052 of the Statutes of
221996; Chapter 637 of the Statutes of 1997; Chapter 498 of the
23Statutes of 1998; Chapter 332 of the Statutes of 1999; Chapter 147
24of the Statutes of 2000; and Chapter 116 of the Statutes of 2001).
25(f) Notwithstanding Section 10231.5, on or
before November
261 of each fiscal year, the Superintendent of Public Instruction shall
27produce a report that indicates the total amount of block grant
28funding each school district, county office of education, and charter
29school received in that fiscal year pursuant to this section. The
30Superintendent of Public Instruction shall provide this report to
31the appropriate fiscal and policy committees of the Legislature,
32the Controller, the Department of Finance, and the Legislative
33Analyst’s Office.
Section 18720.45 of the Government Code is
35amended to read:
Employment forms used by a state agency shall
37require a person applying for employment to disclose whether the
38person has entered into an agreement with the state regarding any
39previous employment with the statebegin delete andend delete thatbegin delete agreementend delete prohibits
P276 1that person from seeking or accepting any subsequent employment
2with the state.
The heading of Chapter 5.5 (commencing with
4Section 19994.20) of Part 2.6 of Division 5 of Title 2 of the 5Government Code is repealed.
6
Section 19995.5 of the Government Code, as added
10by Section 71 of Chapter 446 of the Statutes of 1999, is repealed.
(a) There is hereby created in the State Treasury, the
12State Employee Scholarship Fund to which funds shall be allocated
13from the amount negotiated in memoranda of understanding
14between the state and recognized employee organizations, as
15defined in Section 3513, and appropriated by the Legislature for
16the 2000-01 fiscal year.
17(b) The fund shall be used to establish a program for career
18advancement to assist eligible state employees to participate in
19educational programs that will enhance the personal growth and
20career development of employees in state government.
21(c) The fund shall be administered by the Department of
22Personnel Administration. The amounts to be allocated and
23expended from funds available for compensation shall be
24determined by the department.
25(d) Notwithstanding Section 13340, moneys in the fund shall
26be available for expenditure without regard to fiscal years through
27June 30, 2001. As of June 30, 2001, the fund shall cease to exist
28unless the existence of the fund is extended by statute and that
29statute is enacted prior to June 30, 2001.
Section 22960.51 of the Government Code, as added
31by Section 3 of Chapter 790 of the Statutes of 2014, is amended
32and renumbered to read:
Consistent with the requirements of Section
35401(a)(2) of the Internal Revenue Code (26 U.S.C. Sec. 401(a)(2)),
36the corpus or income of the plan’s trust shall not be diverted to,
37or used for, purposes other than the exclusive benefit of the
38members or their beneficiaries nor shall there be a reversion of
39trust funds except as permitted by Revenue Ruling 91-4, 1991-1
40C.B. 57, by the Internal Revenue Service.
Section 31685.96 of the Government Code, as added
2by Section 2 of Chapter 670 of the Statutes of 1994, is amended
3and renumbered to read:
This article shall not be operative in any county until
6the board of supervisors shall, by resolution adopted by a majority
7vote, make this article applicable in the county.
Section 43009 of the Government Code, as added
9by Section 5 of Chapter 752 of the Statutes of 1995, is repealed.
In exercising its discretion to waive the security deposit
11authorized by subdivision (b) of Section 43008, a utility shall
12consider the creditworthiness of the transferee, and any other
13factors determined by the utility.
Section 53216.8 of the Government Code, as
15amended by Section 156 of Chapter 62 of the Statutes of 2003, is
16amended and renumbered to read:
(a) Any former member who left the service of a
19local agency with established reciprocity, and who became a
20member of a county retirement system, a retirement system
21established under the Public Employees’ Retirement Law, or
22another reciprocal retirement system and who did not elect to, or
23was not eligible to, leave his or her contributions on deposit, may
24elect to redeposit those contributions if he or she is an active
25member of a reciprocal retirement system or the Public Employees’
26Retirement System at the time of redeposit. A former member may
27exercise this right by redepositing in the
retirement fund of the
28local agency he or she left, the amount of accumulated
29contributions and interest that he or she withdrew from that
30retirement fund plus regular interest thereon from the date of
31separation.
32(b) A former member who redeposits under this section shall
33have the same rights as a member who elected to leave his or her
34accumulated contributions on deposit in the local agency’s fund.
35The deferred retirement allowance of the member shall be
36determined in accordance with provisions applicable to a member
37retiring directly from local agency employment on the date of his
38or her retirement.
39(c) A former member who redeposits under this section shall
40be entitled to a reduced age at entry, commencing with
P278 1contributions payable the first day of the month following the date
2the local agency receives notice of the redeposit, if applicable.
3(d) This section does not apply to either of the following:
4(1) A member or former member who is retired.
5(2) A former member who is not in the service of an employer
6making him or her a member of a county retirement system, a
7retirement system established under the Public Employees’
8Retirement Law, or another reciprocal retirement system.
9(e) This sectionbegin delete shallend delete onlybegin delete applyend deletebegin insert appliesend insert to either of the
10following:
11(1) A former
member who is in the service of an employer as
12an officer or employee of a law enforcement agency or fire
13department whose principal duties consist of active law
14enforcement or firefighting and prevention service, but excluding
15one whose principal duties are those of a telephone operator, clerk,
16stenographer, machinist, mechanic, or otherwise, and whose
17functions do not clearly come within the scope of active law
18enforcement or firefighting and prevention service, even though
19the officer or employee is subject to occasional call, or is
20occasionally called upon, to perform duties within the scope of
21active law enforcement or firefighting and prevention service.
22(2) A former member who is in the service of an employer and
23seeks to redeposit contributions for past employment as an officer
24or employee of a law enforcement agency or fire department in
25this system whose principal duties consisted of active law
26enforcement or firefighting and
prevention service, but excluding
27one whose principal duties were those of a telephone operator,
28clerk, stenographer, machinist, mechanic, or otherwise, and whose
29functions did not clearly come within the scope of active law
30enforcement or firefighting and prevention service, even though
31the officer or employee was subject to occasional call, or was
32occasionally called upon, to perform duties within the scope of
33active law enforcement or firefighting and prevention service.
34(f) For purposes of this section, a “former member” is a member
35who left service under a retirement system established under this
36article and who did not elect to, or was not eligible to, leave his
37or her contributions on deposit.
38(g) Each retirement system subject to this section shall establish
39criteria to determine the eligibility of a former member to redeposit
40contributions, and the amount of contributions
that may be
P279 1redeposited, in those cases in which the system no longer maintains
2complete records with respect to the former member.
3(h) It is the intent of the Legislature in enacting this section to
4recognize a statewide public obligation to all those whose duties
5as local public safety officers expose them to more than ordinary
6risks through their contribution to ensuring public safety and to
7ensure that those who do serve or have served as local public safety
8officers shall have the ability to receive pension benefits for past
9public service in other jurisdictions within the state.
Section 53398.52 of the Government Code is
11amended to read:
(a) (1) A district may finance any of the following:
13(A) The purchase, construction, expansion, improvement,
14seismic retrofit, or rehabilitation of any real or other tangible
15property with an estimated useful life of 15 years or longer that
16satisfies the requirements of subdivision (b).
17(B) The planning and design work that is directly related to the
18purchase, construction, expansion, or rehabilitation of property.
19(C) The costs described in Sections 53398.56 and 53398.57.
20(2) The facilities need not be physically located within the
21boundaries of the
district. However, any facilities financed outside
22of a district must have a tangible connection to the work of the
23district, as detailed in the infrastructure financing plan adopted
24pursuant to Section 53398.69.
25(3) A districtbegin delete mayend deletebegin insert shallend insert not finance routine maintenance, repair
26work, or the costs of an ongoing operation or providing services
27of any kind.
28(b) The district shall finance only public capital facilities or
29other specified projects of communitywide significance that
30provide significant benefits to the district or the surrounding
31community, including, but not limited to, all of the following:
32(1) Highways, interchanges,
ramps and bridges, arterial streets,
33parking facilities, and transit facilities.
34(2) Sewage treatment and water reclamation plants and
35interceptor pipes.
36(3) Facilities for the collection and treatment of water for urban
37uses.
38(4) Flood control levees and dams, retention basins, and drainage
39channels.
40(5) Child care facilities.
P280 1(6) Libraries.
2(7) Parks, recreational facilities, and open space.
3(8) Facilities for the transfer and disposal of solid waste,
4including transfer stations and vehicles.
5(9) Brownfield restoration and other environmental mitigation.
6(10) The development of projects on a former military base,
7provided that the projects are consistent with the military base
8authority reuse plan and are approved by the military base reuse
9authority, if applicable.
10(11) The repayment of the transfer of funds to a military base
11reuse authority pursuant to Section 67851 that occurred on or after
12the creation of the district.
13(12) The acquisition, construction, or rehabilitation of housing
14for persons of low and moderate income, as defined in Section
1550093 of the Health and Safety Code, for rent or purchase.
16(13) Acquisition, construction, or repair of industrial structures
17for private use.
18(14) Transit priority projects, as defined in Section 21155 of
19the Public Resources Code, that are located within a transit priority
20project area. For purposes of this paragraph, a transit priority
21project area may include a military base reuse plan that meets the
22definition of a transit priority project area and it may include a
23contaminated site within a transit priority project area.
24(15) Projects that implement a sustainable communities strategy,
25when the State Air Resources Board, pursuant to Chapter 2.5
26(commencing with Section 65080) of Divisionbegin delete 2end deletebegin insert 1end insert of Title 7, has
27accepted a metropolitan planning organization’s determination
28that the sustainable communities strategy or the alternative
planning
29strategy would, if implemented, achieve the greenhouse gas
30emission reduction targets.
31(c) The district shall require, by recorded covenants or
32restrictions, that housing units built pursuant to this section shall
33remain available at affordable housing costs to, and occupied by,
34persons and families of low- or moderate-income households for
35the longest feasible time, but for not less than 55 years for rental
36units and 45 years for owner-occupied units.
37(d) The district may finance mixed-income housing
38developments, but may finance only those units in such a
39development that are restricted to occupancy by persons of low or
40moderate incomes as defined in Section 50093 of the Health and
P281 1Safety Code, and those onsite facilities for child care, after-school
2care, and social services that are integrally linked to the tenants of
3the restricted units.
4(e) A district may utilize any powers under the Polanco
5Redevelopment Act (Article 12.5 (commencing with Section
633459) of Chapter 4 of Part 1 of Division 24 of the Health and
7Safety Code), and finance any action necessary to implement that
8act.
Section 53398.75 of the Government Code is
10amended to read:
(a) Any infrastructure financing plan may contain
12a provision that taxes, if any, levied upon taxable property in the
13area included within the enhanced infrastructure financing district
14each year by or for the benefit of the State of California, or any
15affected taxing entity after the effective date of the ordinance
16adopted pursuant to Section 53398.69 to create the district, shall
17be divided as follows:
18(1) That portion of the taxes that would be produced by the rate
19upon which the tax is levied each year by or for each of the affected
20taxing entities upon the total sum of the assessed value of the
21taxable property in the district as shown upon the assessment roll
22used in connection with the taxation of the property by the affected
23taxing entity, last equalized
prior to the effective date of the
24ordinance adopted pursuant to Section 53398.69 to create the
25district, shall be allocated to, and when collected shall be paid to,
26the respective affected taxing entities as taxes by or for the affected
27taxing entities on all other property are paid.
28(2) That portion of the levied taxes each year specified in the
29adopted infrastructure financing plan for the city or county and
30each affected taxing entity that has agreed to participate pursuant
31to Section 53398.68 in excess of the amount specified in
32begin delete subdivision (a)end deletebegin insert paragraph (1)end insert shall be allocated to, and when
33collected shall be paid into a special fund of, the district for all
34lawful purposes of the district. Unless and until the total assessed
35valuation of the taxable
property in a district exceeds the total
36assessed value of the taxable property in the district as shown by
37the last equalized assessment roll referred to inbegin delete subdivision (a),end delete
38begin insert paragraph (1),end insert all of the taxes levied and collected upon the taxable
39property in the district shall be paid to the respective affected taxing
40entities. When the district ceases to exist pursuant to the adopted
P282 1infrastructure financing plan, all moneys thereafter received from
2taxes upon the taxable property in the district shall be paid to the
3respective affected taxing entities as taxes on all other property
4are paid.
5(b) Notwithstanding subdivision (a), where any district
6boundaries overlap with the boundaries of any former
7redevelopment project area, any debt or obligation of a
district
8shall be subordinate to any and all enforceable obligations of the
9former redevelopment agency, as approved by the Oversight Board
10and the Department of Finance. For the purposes of this chapter,
11the division of taxes allocated to the district pursuant to subdivision
12(a) of this section or of subdivision (b) of Section 53396 shall not
13include any taxes required to be deposited by the county
14auditor-controller into the Redevelopment Property Tax Trust Fund
15created pursuant to subdivision (b) of Section 34170.5 of the Health
16and Safety Code.
17(c) The legislative body of the city or county forming the district
18may choose to dedicate any portion of its net available revenue to
19the district through the financing plan described in Section
2053398.63.
21(d) For the purposes of this section, “net available revenue”
22means periodic distributions to the city or county from the
23
Redevelopment Property Tax Trust Fund, created pursuant to
24Section 34170.5 of the Health and Safety Code, that are available
25to the city or county after all preexisting legal commitments and
26statutory obligations funded from that revenue are made pursuant
27to Part 1.85 (commencing with Section 34170) of Division 24 of
28the Health and Safety Code. “Net available revenue” shall not
29include any funds deposited by the county auditor-controller into
30the Redevelopment Property Tax Trust Fund or funds remaining
31in the Redevelopment Property Tax Trust Fund prior to distribution.
32Net available revenues shall not include any moneys payable to a
33school district that maintains kindergarten and grades 1 to 12,
34inclusive, community college districts, county office of education,
35or to the Educational Revenue Augmentation Fund, pursuant to
36paragraph (4) of subdivision (a) of Section 34183 of the Health
37and Safety Code.
38(e) (1) That portion
of any ad valorem property tax revenue
39annually allocated to a city or county pursuant to Section 97.70 of
40the Revenue and Taxation Code that is specified in the adopted
P283 1infrastructure financing plan for the city or county that has agreed
2to participate pursuant to Section 53398.68, and that corresponds
3to the increase in the assessed valuation of taxable property shall
4be allocated to, and when collected shall be apportioned to a special
5fund of the district for all lawful purposes of the district.
6(2) When the district ceases to exist pursuant to the adopted
7infrastructure financing plan, the revenues described in this
8subdivision shall be allocated to, and when collected, shall be
9apportioned to the respective city or county.
10(f) This section shall not be construed to prevent a district from
11utilizing revenues from any of the following sources to support its
12activities provided
that the applicable voter approval has been
13obtained, and the infrastructure financing plan has been approved
14pursuant to Section 53398.69:
15(1) The Improvement Act of 1911 (Division 7 (commencing
16with Section 5000) of the Streets and Highways Code).
17(2) The Municipal Improvement Act of 1913 (Division 12
18(commencing with Section 10000) of the Streets and Highways
19Code).
20(3) The Improvement Bond Act of 1915 (Division 10
21(commencing with Section 8500) of the Streets and Highways
22Code).
23(4) The Landscaping and Lighting Act of 1972 (Part 2
24(commencing with Section 22500) of Division 15 of the Streets
25and Highways Code).
26(5) The Vehicle Parking District Law of 1943 (Part 1
27(commencing with
Section 31500) of Division 18 of the Streets
28and Highways Code).
29(6) The Parking District Law of 1951 (Part 4 (commencing with
30Section 35100) of Division 18 of the Streets and Highways Code).
31(7) The Park and Playground Act of 1909 (Chapter 7
32(commencing with Section 38000) of Part 2 of Division 3 of Title
334 of this code).
34(8) The Mello-Roos Community Facilities Act of 1982 (Chapter
352.5 (commencing with Section 53311) of Part 1 of Division 2 of
36this title).
37(9) The Benefit Assessment Act of 1982 (Chapter 6.4
38(commencing with Section 54703) of Part 1 of Division 2 of this
39title).
P284 1(10) The so-called facilities benefit assessment levied by the
2charter city of San Diego or any substantially
similar assessment
3levied for the same purpose by any other charter city pursuant to
4any ordinance or charter provision.
Section 56378 of the Government Code is amended
6to read:
(a) In addition to its other powers, the commission
8shall initiate and make studies of existing governmental agencies.
9Those studies shall include, but shall not be limited to, inventorying
10those agencies and determining their maximum service area and
11service capacities. In conducting those studies, the commission
12may request land use information, studies, joint powers agreements,
13and plans of cities, counties, districts, including school districts,
14community college districts, joint powers agencies and joint powers
15authorities, regional agenciesbegin insert,end insert and state agencies and departments.
16Cities, counties, districts, including school districts, community
17college districts, joint powers agencies and joint powers authorities,
18
regional agencies, and state agencies and departments, shall comply
19with the request of the commission for that information and the
20commission shall make its studies available to public agencies and
21any interested person. In making these studies, the commission
22may cooperate with the county planning commissions.
23(b) The commission, or the board of supervisors on behalf of
24the commission, may apply for or accept, or both, any financial
25assistance and grants-in-aid from public or private agencies or
26from the state or federal government or from a local government.
Section 65080.1 of the Government Code, as added
28by Section 3 of Chapter 375 of the Statutes of 2007, is amended
29and renumbered to read:
Each transportation planning agency designated under
32Section 29532 or 29532.1 whose jurisdiction includes a portion
33of the California Coastal Trail, or property designated for the trail,
34that is located within the coastal zone, as defined in Section 30103
35of the Public Resources Code, shall coordinate with the State
36Coastal Conservancy, the California Coastal Commission, and the
37Department of Transportation regarding development of the
38California Coastal Trail, and each transportation planning agency
39shall include provisions for the California Coastal Trail in its
40regional plan, under Section
65080.
Section 65352.5 of the Government Code is amended
2to read:
(a) The Legislature finds and declares that it is vital
4that there be close coordination and consultation between
5California’s water supply or management agencies and California’s
6land use approval agencies to ensure that proper water supply and
7management planning occurs to accommodate projects that will
8result in increased demands on water supplies or impact water
9resource management.
10(b) It is, therefore, the intent of the Legislature to provide a
11standardized process for determining the adequacy of existing and
12planned future water supplies to meet existing and planned future
13demands on these water supplies and the impact of land use
14decisions on the management of California’s water supply
15resources.
16(c) Upon receiving, pursuant to Section 65352, notification of
17a city’s or a county’s proposed action to adopt or substantially
18amend a general plan, a public water system, as defined in Section
19116275 of the Health and Safety Code, with 3,000 or more service
20connections, shall provide the planning agency with the following
21information, as is appropriate and relevant:
22(1) The current version of its urban water management plan,
23adopted pursuant to Part 2.6 (commencing with Section 10610)
24of Division 6 of the Water Code.
25(2) The current version of its capital improvement program or
26plan, as reported pursuant to Section 31144.73 of the Water Code.
27(3) A description of the source or sources of the total water
28supply currently available to the water supplier by water right or
29contract, taking into account
historical data concerning wet, normal,
30and dry runoff years.
31(4) A description of the quantity of surface water that was
32purveyed by the water supplier in each of the previous five years.
33(5) A description of the quantity of groundwater that was
34purveyed by the water supplier in each of the previous five years.
35(6) A description of all proposed additional sources of water
36supplies for the water supplier, including the estimated dates by
37which these additional sources should be available and the
38quantities of additional water supplies that are being proposed.
P286 1(7) A description of the total number of customers currently
2served by the water supplier, as identified by the following
3categories and by the amount of water served to each category:
4(A) Agricultural users.
5(B) Commercial users.
6(C) Industrial users.
7(D) Residential users.
8(8) Quantification of the expected reduction in total water
9demand, identified by each customer category set forth in paragraph
10(7), associated with future implementation of water use reduction
11measures identified in the water supplier’s urban water
12management plan.
13(9) Any additional information that is relevant to determining
14the adequacy of existing and planned future water supplies to meet
15existing and planned future demands on these water supplies.
16(d) Upon receiving,
pursuant to Section 65352, notification of
17a city’s or a county’s proposed action to adopt or substantially
18amend a general plan, a groundwater sustainability agency, as
19defined in Section 10721 of the Water Code, or an entity that
20submits an alternative under Section 10733.6begin insert of the Water Codeend insert
21 shall provide the planning agency with the following information,
22as is appropriate and relevant:
23(1) The current version of its groundwater sustainability plan
24or alternative adopted pursuant to Part 2.74 (commencing with
25Section 10720) of Division 6 of the Water Code.
26(2) If the groundwater sustainability agency manages
27groundwater pursuant to a court order, judgment, decree, or
28agreement among affected water rights holders, or if the State
29Water Resources Control Board has adopted
an interim plan
30pursuant to Chapter 11 (commencing with Section 10735) of Part
312.74 of Division 6 of the Water Code, the groundwater
32sustainability agency shall provide the planning agency with maps
33of recharge basins and percolation ponds, extraction limitations,
34and other relevant information, or the court order, judgment, or
35decree.
36(3) A report on the anticipated effect of proposed action to adopt
37or substantially amend a general plan on implementation of a
38groundwater sustainability plan pursuant to Part 2.74 (commencing
39with Section 10720) of Division 6 of the Water Code.
Section 65583.2 of the Government Code, as
2amended by Chapter 883 of the Statutes of 2014, is amended to
3read:
(a) A city’s or county’s inventory of land suitable
5for residential development pursuant to paragraph (3) of
6subdivision (a) of Section 65583 shall be used to identify sites that
7can be developed for housing within the planning period and that
8are sufficient to provide for the jurisdiction’s share of the regional
9housing need for all income levels pursuant to Section 65584. As
10used in this section, “land suitable for residential development”
11includes all of the following:
12(1) Vacant sites zoned for residential use.
13(2) Vacant sites zoned for nonresidential use that allows
14residential development.
15(3) Residentially zoned sites that are
capable of being developed
16at a higher density.
17(4) Sites zoned for nonresidential use that can be redeveloped
18for, and as necessary, rezoned for, residential use.
19(b) The inventory of land shall include all of the following:
20(1) A listing of properties by parcel number or other unique
21reference.
22(2) The size of each property listed pursuant to paragraph (1),
23and the general plan designation and zoning of each property.
24(3) For nonvacant sites, a description of the existing use of each
25property.
26(4) A general description of any environmental constraints to
27the development of housing within the jurisdiction, the
28documentation
for which has been made available to the
29jurisdiction. This information need not be identified on a
30site-specific basis.
31(5) A general description of existing or planned water, sewer,
32and other dry utilities supply, including the availability and access
33to distribution facilities. This information need not be identified
34on a site-specific basis.
35(6) Sites identified as available for housing for above
36moderate-income households in areas not served by public sewer
37systems. This information need not be identified on a site-specific
38basis.
P288 1(7) A map that shows the location of the sites included in the
2inventory, such as the land use map from the jurisdiction’s general
3plan, for reference purposes only.
4(c) Based on the information provided in subdivision
(b), a city
5or county shall determine whether each site in the inventory can
6accommodate some portion of its share of the regional housing
7need by income level during the planning period, as determined
8pursuant to Section 65584. The analysis shall determine whether
9the inventory can provide for a variety of types of housing,
10including multifamily rental housing, factory-built housing,
11mobilehomes, housing for agricultural employees, emergency
12shelters, and transitional housing. The city or county shall
13determine the number of housing units that can be accommodated
14on each site as follows:
15(1) If local law or regulations require the development of a site
16at a minimum density, the department shall accept the planning
17agency’s calculation of the total housing unit capacity on that site
18based on the established minimum density. If the city or county
19does not adopt a law or regulations requiring the development of
20a site at a minimum density, then
it shall demonstrate how the
21number of units determined for that site pursuant to this subdivision
22will be accommodated.
23(2) The number of units calculated pursuant to paragraph (1)
24shall be adjusted as necessary, based on the land use controls and
25site improvements requirement identified in paragraph (5) of
26subdivision (a) of Section 65583.
27(3) For the number of units calculated to accommodate its share
28of the regional housing need for lower income households pursuant
29to paragraph (2), a city or county shall do either of the following:
30(A) Provide an analysis demonstrating how the adopted densities
31accommodate this need. The analysis shall include, but is not
32limited to, factors such as market demand, financial feasibility, or
33information based on development project experience within a
34zone or zones that provide
housing for lower income households.
35(B) The following densities shall be deemed appropriate to
36accommodate housing for lower income households:
37(i) For an incorporated city within a nonmetropolitan county
38and for a nonmetropolitan county that has a micropolitan area:
39sites allowing at least 15 units per acre.
P289 1(ii) For an unincorporated area in a nonmetropolitan county not
2included in clause (i): sites allowing at least 10 units per acre.
3(iii) For a suburban jurisdiction: sites allowing at least 20 units
4per acre.
5(iv) For a jurisdiction in a metropolitan county: sites allowing
6at least 30 units per acre.
7(d) For purposes of
this section, a metropolitan county,
8nonmetropolitan county, and nonmetropolitan county with a
9micropolitan area shall be as determined by the United States
10Census Bureau. A nonmetropolitan county with a micropolitan
11area includes the following counties: Del Norte, Humboldt, Lake,
12Mendocino, Nevada, Tehama, and Tuolumne and other counties
13as may be determined by the United States Census Bureau to be
14nonmetropolitan counties with micropolitan areas in the future.
15(e) (1) Except as provided in paragraph (2), a jurisdiction shall
16be considered suburban if the jurisdiction does not meet the
17requirements of clauses (i) and (ii) of subparagraph (B) of
18paragraph (3) of subdivision (c) and is located in a Metropolitan
19Statistical Area (MSA) of less than 2,000,000 in population, unless
20that jurisdiction’s population is greater than 100,000, in which
21case it shall be considered metropolitan. A county, not including
22the City and
County of San Francisco, shall be considered suburban
23unless the county is in an MSA of 2,000,000 or greater in
24population in which case the county shall be considered
25metropolitan.
26(2) (A) (i) Notwithstanding paragraph (1), if a county that is
27in the San Francisco-Oakland-Fremont California MSA has a
28population of less than 400,000, that county shall be considered
29suburban. If this county includes an incorporated city that has a
30population of less than 100,000, this city shall also be considered
31suburban. This paragraph shall apply to a housing element revision
32cycle, as described in subparagraph (A) of paragraph (3) of
33subdivision (e) of Section 65588, that is in effect from July 1,
342014, to December 31, 2023, inclusive.
35(ii) A county subject to this subparagraph shall utilize the sum
36existing in the county’s housing trust fund as of
June 30, 2013, for
37the development and preservation of housing affordable to low- and
38very low income households.
39(B) A jurisdiction that is classified as suburban pursuant to this
40paragraph shall report to the Assembly Committee on Housing
P290 1and Community Development, the Senate Committee on
2Transportation and Housing, and the Department of Housing and
3Community Development regarding its progress in developing
4low- and very low income housing consistent with the requirements
5of Section 65400. The report shall be providedbegin delete twice,end deletebegin insert twice:end insert once,
6on or before December 31, 2019, which report shall address the
7initial four years of the housing element cycle, and a second time,
8on or before December 31, 2023, which report shall address the
9subsequent four years of
the housing element cycle and the cycle
10as a whole. The reports shall be provided consistent with the
11requirements of Section 9795.
12(f) A jurisdiction shall be considered metropolitan if the
13jurisdiction does not meet the requirements for “suburban area”
14above and is located inbegin delete aend deletebegin insert anend insert MSA of 2,000,000 or greater in
15population, unless that jurisdiction’s population is less than 25,000
16in which case it shall be considered suburban.
17(g) For sites described in paragraph (3) of subdivision (b), the
18city or county shall specify the additional development potential
19for each site within the planning period and shall provide an
20explanation of the methodology used to determine the development
21potential.
The methodology shall consider factors including the
22extent to which existing uses may constitute an impediment to
23additional residential development, development trends, market
24conditions, and regulatory or other incentives or standards to
25encourage additional residential development on these sites.
26(h) The program required by subparagraph (A) of paragraph (1)
27of subdivision (c) of Section 65583 shall accommodate 100 percent
28of the need for housing for very low and low-income households
29allocated pursuant to Section 65584 for which site capacity has
30not been identified in the inventory of sites pursuant to paragraph
31(3) of subdivision (a) on sites that shall be zoned to permit
32owner-occupied and rental multifamily residential use by right
33during the planning period. These sites shall be zoned with
34minimum density and development standards that permit at least
3516 units per site at a density of at least 16 units per acre in
36jurisdictions
described in clause (i) of subparagraph (B) of
37paragraph (3) of subdivision (c) and at least 20 units per acre in
38jurisdictions described in clauses (iii) and (iv) of subparagraph (B)
39of paragraph (3) of subdivision (c). At least 50 percent of the very
40low and low-income housing need shall be accommodated on sites
P291 1designated for residential use and for which nonresidential uses
2or mixed-uses are not permitted, except that a city or county may
3accommodate all of the very low and low-income housing need
4on sites designated for mixed uses if those sites allow 100 percent
5residential use and require that residential use occupy 50 percent
6of the total floor area of a mixed-use project.
7(i) For purposes of this section and Section 65583, the phrase
8“use by right” shall mean that the local government’s review of
9the owner-occupied or multifamily residential use may not require
10a conditional use permit, planned unit development permit, or other
11
discretionary local government review or approval that would
12constitute a “project” for purposes of Division 13 (commencing
13with Section 21000) of the Public Resources Code. Any subdivision
14of the sites shall be subject to all laws, including, but not limited
15to, the local government ordinance implementing the Subdivision
16Map Act. A local ordinance may provide that “use by right” does
17not exempt the use from design review. However, that design
18review shall not constitute a “project” for purposes of Division 13
19(commencing with Section 21000) of the Public Resources Code.
20Use by right for all rental multifamily residential housing shall be
21provided in accordance with subdivision (f) of Section 65589.5.
22(j) Notwithstanding any other provision of this section, within
23one-half mile of a Sonoma-Marin Area Rail Transit station, housing
24density requirements in place on June 30, 2014, shall apply.
25(k) This section shall remain in effect only until December 31,
262023, and as of that date is repealed, unless a later enacted statute,
27that is enacted before December 31, 2023, deletes or extends that
28date.
Section 65995.7 of the Government Code is amended
30to read:
(a) begin delete(1)end deletebegin delete end deleteIf state funds for new school facility
32construction are not available, the governing board of a school
33district that complies with Section 65995.5 may increase the
34alternative fee, charge, dedication, or other requirement calculated
35pursuant to subdivision (c) of Section 65995.5 by an amount that
36may not exceed the amount calculated pursuant to subdivision (c)
37of Section 65995.5, except that for the purposes of calculating this
38additional amount, the amount identified in paragraph (2) of
39subdivision (c) of Section 65995.5 may not be subtracted from the
40amount determined pursuant to paragraph (1) of subdivision (c)
P292 1of Section 65995.5. For
purposes of this section, state funds are
2not available if the State Allocation Board is no longer approving
3apportionments for new construction pursuant to Article 5
4(commencing with Section 17072.20) of Chapter 12.5 of Part 10
5of the Education Code due to a lack of funds available for new
6construction. Upon making a determination that state funds are no
7longer available, the State Allocation Board shall notify the
8Secretary of the Senate and the Chief Clerk of the Assembly, in
9writing, of that determination and the date when state funds are
10no longer available for publication in the respective journal of each
11house. For the purposes of making this determination, the board
12shall not consider whether funds are available for, or whether it is
13making preliminary apportionments or final apportionments
14pursuant to, Article 11 (commencing with Section 17078.10).
15(2) Paragraph (1) shall become inoperative commencing on the
16effective date of the measure that amended this section to add this
17paragraph, and shall remain inoperative through the earlier of
either
18of the following:
19(A) November 5, 2002, if the voters reject the Kindergarten
20University Public Education Facilities Bond Act of 2002, after
21which date paragraph (1) shall again become operative.
22(B) The date of the 2004 direct primary election after which
23date paragraph (1) shall again become operative.
24(3) Paragraph (1) shall become inoperative commencing on the
25effective date of the measure that amended this section to add this
26paragraph, and shall remain inoperative through December 31,
272014, after which date paragraph (1) shall again become operative,
28except that it may become operative sooner in either of the
29following circumstances:
30(A) A statewide school
facilities bond passes before December
3131, 2014, in which case paragraph (1) shall become operative upon
32certification of the election in which the voters approved the bond.
33(B) A statewide school facilities bond has not been placed on
34the ballot for the November 4, 2014, statewide general election by
35August 31, 2014, in which case paragraph (1) shall become
36operative on September 1, 2014.
37(b) A governing board may offer a reimbursement election to
38the person subject to the fee, charge, dedication, or other
39requirement that provides the person with the right to monetary
40reimbursement of the supplemental amount authorized by this
P293 1section, to the extent that the district receives funds from state
2sources for construction of the facilities for which that amount was
3required, less any amount expended by
the district for interim
4housing. At the option of the person subject to the fee, charge,
5dedication, or other requirement the reimbursement election may
6be made on a tract or lot basis. Reimbursement of available funds
7shall be made within 30 days as they are received by the district.
8(c) A governing board may offer the person subject to the fee,
9charge, dedication, or other requirement an opportunity to negotiate
10an alternative reimbursement agreement if the terms of the
11agreement are mutually agreed upon.
12(d) A governing board may provide that the rights granted by
13the reimbursement election or the alternative reimbursement
14agreement are assignable.
The heading of Article 2 (commencing with Section
1672054) of Chapter 8 of Title 8 of the Government Code is repealed.
17
The heading of Article 4 (commencing with Section
2172150) of Chapter 8 of Title 8 of the Government Code is repealed.
22
Section 75070 of the Government Code is amended
26to read:
In lieu of the retirement allowance for his or her life
28alone, a judge may elect, or revoke or change a previous election
29prior to the approval of the previous election, to have the actuarial
30equivalent of hisbegin insert or herend insert retirement allowance as of the date of
31retirement applied to a lesser retirement allowance, in accordance
32with one of the optional settlements specified in Section 75071.
33That election, revocation, or change of election shall be made
34by a writing filed with the Judges’ Retirement System within 30
35calendar days after the making of the first payment on account of
36any retirement allowance.
Section 75521 of the Government Code is amended
38to read:
(a) A judge who leaves judicial office before accruing
2at least five years of service shall be paid the amount of his or her
3contributions to the system, and no other amount.
4(b) A judge who leaves judicial office after accruing five or
5more years of service and who is not eligible to elect to retire under
6Section 75522 shall be paid the amount of his or her monetary
7credits determined pursuant to Section 75520, including the credits
8added under subdivision (b) of that section computed to the last
9day of the month preceding the date of distribution, and no other
10amount.
11(c) Judges who leave office as described in subdivision (b) are
12“retired judges” for purposes
of a concurrent retirement with
13respect to the benefits provided under Section 20639 and
14assignment pursuant to Article 2 (commencing with Sectionbegin delete 66540end delete
15begin insert 68540.7end insert) of Chapter 2 and are eligible for benefits provided under
16Section 22814.
17(d) After a judge has withdrawn his or her accumulated
18contributions or the amount of his or her monetary credits upon
19leaving judicial office, the service shall not count in the event he
20or she later becomes a judge again, until he or she pays into the
21Judges’ Retirement System II Fund the amount withdrawn, plus
22interest thereon at the rate of interest then being required to be
23paid by members of the Public Employees’ Retirement System
24under Section 20750 from the date of withdrawal to the date of
25
payment.
Section 82015 of the Government Code is amended
27to read:
(a) “Contribution” means a payment, a forgiveness of
29a loan, a payment of a loan by a third party, or an enforceable
30promise to make a payment except to the extent that full and
31adequate consideration is received, unless it is clear from the
32surrounding circumstances that it is not made for political purposes.
33(b) (1) A payment made at the behest of a committee, as defined
34in subdivision (a) of Section 82013, is a contribution to the
35committee unless full and adequate consideration is received from
36the committee for making the payment.
37(2) A payment made at the behest of a candidate is a contribution
38to the candidate unless the criteria in either subparagraph (A) or
39(B) are
satisfied:
P295 1(A) Full and adequate consideration is received from the
2candidate.
3(B) It is clear from the surrounding circumstances that the
4payment was made for purposes unrelated to his or her candidacy
5for elective office. The following types of payments are presumed
6to be for purposes unrelated to a candidate’s candidacy for elective
7office:
8(i) A payment made principally for personal purposes, in which
9case it may be considered a gift under the provisions of Section
1082028. Payments that are otherwise subject to the limits of Section
1186203 are presumed to be principally for personal purposes.
12(ii) A payment made by a state, local, or federal governmental
13agency or by a nonprofit organization that is exempt from taxation
14under Section 501(c)(3) of the
Internal Revenue Code.
15(iii) A payment not covered by clause (i), made principally for
16legislative, governmental, or charitable purposes, in which case it
17is neither a gift nor a contribution. However, payments of this type
18that are made at the behest of a candidate who is an elected officer
19shall be reported within 30 days following the date on which the
20payment or payments equal or exceed five thousand dollars
21($5,000) in the aggregate from the same source in the same
22calendar year in which they are made. The report shall be filed by
23the elected officer with the elected officer’s agency and shall be
24a public record subject to inspection and copying pursuant to
25begin delete subdivision (a) ofend delete Section 81008. The report shall contain the
26following information: name of payor, address of payor, amount
27of the payment, date or dates the payment or payments were made,
28the name and
address of the payee, a brief description of the goods
29or services provided or purchased, if any, and a description of the
30specific purpose or event for which the payment or payments were
31made. Once the five-thousand-dollar ($5,000) aggregate threshold
32from a single source has been reached for a calendar year, all
33payments for the calendar year made by that source shall be
34disclosed within 30 days after the date the threshold was reached
35or the payment was made, whichever occurs later. Within 30 days
36after receipt of the report, state agencies shall forward a copy of
37these reports to the Commission, and local agencies shall forward
38a copy of these reports to the officer with whom elected officers
39of that agency file their campaign statements.
P296 1(C) For purposes of subparagraph (B), a payment is made for
2purposes related to a candidate’s candidacy for elective office if
3all or a portion of the payment is used for election-related activities.
4For
purposes of this subparagraph, “election-related activities”
5shall include, but are not limited to, the following:
6(i) Communications that contain express advocacy of the
7nomination or election of the candidate or the defeat of his or her
8opponent.
9(ii) Communications that contain reference to the candidate’s
10candidacy for elective office, the candidate’s election campaign,
11or the candidate’s or his or her opponent’s qualifications for
12elective office.
13(iii) Solicitation of contributions to the candidate or to third
14persons for use in support of the candidate or in opposition to his
15or her opponent.
16(iv) Arranging, coordinating, developing, writing, distributing,
17preparing, or planning of any communication or activity described
18in clause (i), (ii), or
(iii).
19(v) Recruiting or coordinating campaign activities of campaign
20volunteers on behalf of the candidate.
21(vi) Preparing campaign budgets.
22(vii) Preparing campaign finance disclosure statements.
23(viii) Communications directed to voters or potential voters as
24 part of activities encouraging or assisting persons to vote if the
25communication contains express advocacy of the nomination or
26election of the candidate or the defeat of his or her opponent.
27(D) A contribution made at the behest of a candidate for a
28different candidate or to a committee not controlled by the
29behesting candidate is not a contribution to the behesting candidate.
30(3) A payment made at the behest of a member of the Public
31Utilities Commission, made principally for legislative,
32governmental, or charitable purposes, is not a contribution.
33However, payments of this type shall be reported within 30 days
34following the date on which the payment or payments equal or
35exceed five thousand dollars ($5,000) in the aggregate from the
36same source in the same calendar year in which they are made.
37The report shall be filed by the member with the Public Utilities
38Commission and shall be a public record subject to inspection and
39copying pursuant tobegin delete subdivision (a) ofend delete
Section 81008. The report
40shall contain the following information: name of payor, address
P297 1of payor, amount of the payment, date or dates the payment or
2payments were made, the name and address of the payee, a brief
3description of the goods or services provided or purchased, if any,
4and a description of the specific purpose or event for which the
5payment or payments were made. Once the five-thousand-dollar
6($5,000) aggregate threshold from a single source has been reached
7for a calendar year, all payments for the calendar year made by
8that source shall be disclosed within 30 days after the date the
9threshold was reached or the payment was made, whichever occurs
10later. Within 30 days after receipt of the report, the Public Utilities
11Commission shall forward a copy of these reports to the Fair
12Political Practices Commission.
13(c) “Contribution” includes the purchase of tickets for events
14such as dinners, luncheons, rallies, and
similar fundraising events;
15the candidate’s own money or property used on behalf of his or
16her candidacy, other than personal funds of the candidate used to
17pay either a filing fee for a declaration of candidacy or a candidate
18statement prepared pursuant to Section 13307 of the Elections
19Code; the granting of discounts or rebates not extended to the
20public generally or the granting of discounts or rebates by television
21and radio stations and newspapers not extended on an equal basis
22to all candidates for the same office; the payment of compensation
23by any person for the personal services or expenses of any other
24person if the services are rendered or expenses incurred on behalf
25of a candidate or committee without payment of full and adequate
26consideration.
27(d) “Contribution” further includes any transfer of anything of
28value received by a committee from another committee, unless
29full and adequate consideration is received.
30(e) “Contribution” does not include amounts received pursuant
31to an enforceable promise to the extent those amounts have been
32previously reported as a contribution. However, the fact that those
33amounts have been received shall be indicated in the appropriate
34campaign statement.
35(f) (1) Except as provided in paragraph (2) or (3), “contribution”
36does not include a payment made by an occupant of a home or
37office for costs related to any meeting or fundraising event held
38in the occupant’s home or office if the costs for the meeting or
39fundraising event are five hundred dollars ($500) or less.
P298 1(2) “Contribution” includes a payment made by a lobbyist or a
2cohabitant of a lobbyist for costs related to a fundraising event
3held at the home of the lobbyist, including the value of the use of
4the home as a
fundraising event venue. A payment described in
5this paragraph shall be attributable to the lobbyist for purposes of
6Section 85702.
7(3) “Contribution” includes a payment made by a lobbying firm
8for costs related to a fundraising event held at the office of the
9lobbying firm, including the value of the use of the office as a
10fundraising event venue.
11(g) Notwithstanding the foregoing definition of “contribution,”
12the term does not include volunteer personal services or payments
13made by any individual for his or her own travel expenses if the
14payments are made voluntarily without any understanding or
15agreement that they shall be, directly or indirectly, repaid to him
16or her.
17(h) “Contribution” further includes the payment of public
18moneys by a state or local governmental agency for a
19communication to the public that
satisfies both of the following:
20(1) The communication expressly advocates the election or
21defeat of a clearly identified candidate or the qualification, passage,
22or defeat of a clearly identified measure, or, taken as a whole and
23in context, unambiguously urges a particular result in an election.
24(2) The communication is made at the behest of the affected
25candidate or committee.
26(i) “Contribution” further includes a payment made by a person
27to a multipurpose organization as defined and described in Section
2884222.
Section 95014 of the Government Code is amended
30to read:
(a) The term “eligible infant or toddler” for the
32purposes of this title means infants and toddlers from birth through
33two years of age, for whom a need for early intervention services,
34as specified in the federal Individuals with Disabilities Education
35Act (20 U.S.C. Sec.begin delete 1431end deletebegin insert 1430end insert et seq.) and applicable regulations,
36is documented by means of assessment and evaluation as required
37in Sections 95016 and 95018 and who meet one of the following
38criteria:
39(1) Infants and toddlers with a developmental delay in one or
40more of the following five areas: cognitive development; physical
P299 1
and motor development, including vision and hearing;
2communication development; social or emotional development;
3or adaptive development. Developmentally delayed infants and
4toddlers are those who are determined to have a significant
5difference between the expected level of development for their
6age and their current level of functioning. This determination shall
7be made by qualified personnel who are recognized by, or part of,
8a multidisciplinary team, including the parents. A significant
9difference is defined as a 33-percent delay in one or more
10developmental areas.
11(2) Infants and toddlers with established risk conditions, who
12are infants and toddlers with conditions of known etiology or
13conditions with established harmful developmental consequences.
14The conditions shall be diagnosed bybegin delete aend delete qualified personnel
15recognized by, or part of, a multidisciplinary
team, including the
16parents. The condition shall be certified as having a high
17probability of leading to developmental delay if the delay is not
18evident at the time of diagnosis.
19(3) Infants and toddlers who are at high risk of having substantial
20developmental disability due to a combination of biomedical risk
21factors, the presence of which are diagnosed by qualified personnel
22recognized by, or part of, a multidisciplinary team, including the
23parents.
24(b) Regional centers and local educational agencies shall be
25responsible for ensuring that eligible infants and toddlers are served
26as follows:
27(1) The State Department of Developmental Services and
28regional centers shall be responsible for the provision of
29appropriate early intervention services that are required for
30California’s participation in Part C of the federal
Individuals with
31Disabilities Education Act (20 U.S.C. Sec. 1431 et seq.) for all
32infants eligible underbegin delete Section 95014,end deletebegin insert
this section,end insert except for those
33infants with solely a visual, hearing, or severe orthopedic
34impairment, or any combination of those impairments, who meet
35the criteria in Sections 56026 and 56026.5 of the Education Code,
36and in Section 3030(a)begin delete,end deletebegin insert orend insert (b)begin delete, (d), or (e)end delete of, and Section 3031 of,
37Title 5 of the California Code of Regulations.
38(2) The State Department of Education and local educational
39agencies shall be responsible for the provision of appropriate early
40intervention services in accordance with Part C of the federal
P300 1Individuals with Disabilities Education Act (20 U.S.C. Sec. 1431
2et seq.) for infants with solely a visual, hearing,
or severe
3orthopedic impairment, or any combination of those impairments,
4who meet the criteria in Sections 56026 and 56026.5 of the
5Education Code, and in Section 3030(a)begin delete,end deletebegin insert orend insert (b)begin delete, (d), or (e)end delete of, and
6Section 3031 of, Title 5 of the California Code of Regulations,
7and who are not eligible for services under the Lanterman
8Developmental Disabilities Services Act (Division 4.5
9(commencing with Section 4500) of the Welfare and Institutions
10Code).
11(3) The transfer procedures and timelines, as provided under
12subdivision (d) of Section 4643.5 of the Welfare and Institutions
13Code, shall apply if the circumstances pertaining to an eligible
14infant or toddler are that the child (A)
has an order for foster care
15placement, is awaiting foster care placement, or is placed in
16out-of-home care through voluntary placement as defined in
17subdivision (o) of Section 11400 of the Welfare and Institutions
18Code, and (B) transfers between regional centers.
19(c) For infants and toddlers and their families who are eligible
20to receive services from both a regional center and a local
21educational agency, the regional center shall be the agency
22responsible for providing or purchasing appropriate early
23intervention services that are beyond the mandated responsibilities
24of local educational agencies and that are required for California’s
25participation in Part C of the federal Individuals with Disabilities
26Education Act (20 U.S.C. Sec. 1431 et seq.). The local educational
27agency shall provide special education services up to its funded
28program capacity as established annually by the State Department
29of Education in consultation with the State
Department of
30Developmental Services and the Department of Finance.
31(d) begin deleteNo end deletebegin insertAn end insertagency or multidisciplinary team, including any
32agency listed in Section 95012, shallbegin insert notend insert presume or determine
33eligibility, including eligibility for medical services, for any other
34agency. However, regional centers and local educational agencies
35shall coordinate intake, evaluation, assessment, and individualized
36family service plans for infants and toddlers and their families who
37are served by an agency.
38(e) Upon termination of the program pursuant to Section 95003,
39the State Department of Developmental
Services shall be
40responsible for the payment of services pursuant to this title.
P301 1(f) This section shall become operative on January 1, 2015.
The heading of Chapter 10 (commencing with
3Section 95030) of Title 14 of the Government Code is repealed.
4
Section 678.3 of the Harbors and Navigation Code
8 is amended to read:
(a) (1) The division shall determine the fees required
10under this section in amounts sufficient to cover the reasonable
11costs of the development, establishment, and operation of the
12program. The fees shall not exceed those costs.
13(2) The division shall charge a fee not to exceed thirty dollars
14($30) for the initial vessel operator card issued pursuant to
15subdivision (b) of Section 678.
16(3) The division shall charge a fee not to exceed ten dollars
17($10) for a duplicate vessel operator card issued pursuant to
18subdivision (b) of Section 678.
19(b) In determining the amount of the fees imposed pursuant to
20this section, the
division shall establish, and consult with, a
21technical advisory group consisting of interested persons, including,
22but not limited to, representatives of the boating community. The
23begin insert deputyend insert director shall appoint the members of the advisory group.
24(c) The fees collected pursuant to this section shall be deposited
25in the Vessel Operator Certification Account, which is hereby
26established within the Harbors and Watercraft Revolving Fund.
27(d) The division may expend the moneys in the Vessel Operator
28Certification Account, upon appropriation by the Legislature, for
29purposes of implementing this article.
Section 1159.1 of the Harbors and Navigation Code
31 is repealed.
The board shall impose a board operations surcharge,
33the purpose of which is to fully compensate the board for its official
34services, for the services of its staff, and for all its incidental
35expenses. The amount of the surcharge shall not exceed 71⁄2 percent
36of all pilotage fees charged by pilots and inland pilots, unless the
37board establishes, with the approval of the Department of Finance,
38a lesser percentage. The board shall quarterly review its ongoing
39and anticipated expenses and adjust the surcharge to reflect any
40changes which have occurred since the last adjustment.
Section 1159.2 of the Harbors and Navigation Code
2 is amended to read:
(a) The vessel shall pay a board operations surcharge,
4the purpose of which is to fully compensate the board and the
5begin delete Business,end delete Transportationbegin delete and Housingend delete Agency for the official
6services, staff services, and incidental expenses of the board and
7agency. The amount of the surcharge shall be 7.5 percent of all
8pilotage fees charged by pilots pursuant to Sections 1190 and 1191
9unless the board establishes, with the approval of the Department
10of Finance, a lesser percentage, not to exceed any percentage
11consistent with subdivision (d).
12(b) The surcharge shall be billed and collected by the pilots.
13The
pilots shall pay all surcharges collected by them to the board
14monthly or at a later time that the board may direct.
15(c) The board shall quarterly review its ongoing and anticipated
16expenses and adjust the surcharge to reflect any changes that have
17occurred since the last adjustment.
18(d) The board operations surcharge shall not represent a
19percentage significantly more than that required to support the
20board and any costs of thebegin delete Business,end delete Transportationbegin delete and Housingend delete
21 Agency related to the administration of the board pursuant to
22subdivision (a) in addition to the maintenance of a reasonable
23reserve.
Section 6087 of the Harbors and Navigation Code
25 is amended to read:
(a) (1) Notwithstanding the borrowing limit set forth
27in Section 6084, the Oxnard Harbor District may borrow money
28by issuance of promissory notes, or execute conditional sales
29contracts to purchase personal property, in an amount or of a value
30not exceeding in the aggregate at any one time the sum of ten
31million dollars ($10,000,000), for the purposes of acquiring land
32for and constructing or operating any work, project, or facility
33authorized by subdivision (d) of Section 6012 or Section 6075 or
34for the making of improvements or the purchase of equipment or
35for the maintenance thereof.
36(2) All moneys borrowed pursuant to this section shallbegin delete notend delete be
37borrowed for a
termbegin insert
notend insert exceeding five years, and the
38indebtednesses shall notbegin delete incur a rate ofend deletebegin insert accrueend insert interest in excess
39of 12 percent per annum. The indebtedness shall be authorized by
P303 1a resolution of the board of commissioners adopted by a two-thirds
2vote of the members of the board.
3(3) As a condition precedent to the borrowing of any money or
4the execution of any conditional sales contract, as provided in this
5section, in excess of one hundred thousand dollars ($100,000), the
6board shall firstbegin insert,end insert by a two-thirds votebegin insert,end insert
approve by resolution and
7have on file a report on the engineering and economic feasibility
8relating to the project contemplated for the expenditure of the
9borrowed money or conditional sales contract. The feasibility
10report shall be prepared and signed by an engineer or engineers
11licensed and registered under the laws of thebegin delete State of Californiaend delete
12begin insert stateend insert.
13(4) The district shall budget, levy, and collect taxes and pay for
14all indebtedness without limitation by any other provision of this
15part.
16(b) Subdivision (a) does not apply to any money borrowed from
17any agency or department of the United States government or of
18thebegin delete State of Californiaend deletebegin insert
stateend insert.
Section 442.5 of the Health and Safety Code is
20amended to read:
(a) When a health care provider makes a diagnosis that
22a patient has a terminal illness, the health care provider shall do
23both of the following:
24(1) Notify the patient of his or her right, orbegin insert,end insert when applicable,
25the right of another person authorized to make health care decisions
26for the patient, to comprehensive information and counseling
27regarding legal end-of-life options. This notification may be
28provided at the time of diagnosis or at a subsequent visit in which
29the provider discusses treatment options with the patient or the
30other authorized person.
31(2) Upon the request of the patient or
another person authorized
32to make health care decisions for the patient, provide the patient
33or other authorized person with comprehensive information and
34counseling regarding legal end-of-life care options pursuant to this
35section. When a terminally ill patient is in a health facility, as
36defined in Section 1250, the health care provider, or medical
37director of the health facility if the patient’s health care provider
38is not available, may refer the patient or other authorized person
39to a hospice provider or private or public agencies and
40community-based organizations that specialize in end-of-life care
P304 1case management and consultation to receive comprehensive
2information and counseling regarding legal end-of-life care options.
3(b) If a patient or another person authorized to make health care
4decisions for the patient, requests information and counseling
5pursuant to paragraph (2) of subdivision (a), the comprehensive
6information shall include,
but not be limited to, the following:
7(1) Hospice care at home or in a health care setting.
8(2) A prognosis with and without the continuation of
9disease-targeted treatment.
10(3) The patient’s right to refusal of or withdrawal from
11life-sustaining treatment.
12(4) The patient’s right to continue to pursue disease-targeted
13treatment, with or without concurrent palliative care.
14(5) The patient’s right to comprehensive pain and symptom
15management at the end of life, including, but not limited to,
16adequate pain medication, treatment of nausea, palliative
17chemotherapy, relief of shortness of breath and fatigue, and other
18clinical treatments useful when a patient is actively dying.
19(6) The patient’s right to give individual health care instruction
20pursuant to Section 4670 of the Probate Code, which provides the
21means by which a patient may provide written health care
22instruction, such as an advance health care directive, and the
23patient’s right to appoint a legally recognized health care
24decisionmaker.
25(c) The information described in subdivision (b) may, but is not
26required to, be in writing. Health care providers may utilize
27information from organizations specializing in end-of-life care
28that provide information on factsheets and Internet Web sites to
29convey the information described in subdivision (b).
30(d) Counseling may include, but is not limited to, discussions
31about the outcomes for the patient and his or her family, based on
32the interest of the patient. Information and counseling, as
described
33in subdivision (b), may occur over a series of meetings with the
34health care provider or others who may be providing the
35information and counseling based on the patient’s needs.
36(e) The information and counseling sessions may include a
37discussion of treatment options in a culturally sensitive manner
38that the patient and his or her family, or, when applicable, another
39person authorized to make health care decisions for the patient,
40can easily understand. If the patient or other authorized person
P305 1requests information on the costs of treatment options, including
2the availability of insurance and eligibility of the patient for
3coverage, the patient or other authorized person shall be referred
4to the appropriate entity for that information.
5(f) The notification made pursuant to paragraph (1) of
6subdivision (a) shall not be required if the patient or other person
7authorized to
make health care decisions, as defined in Section
84617 of the Probate Code, for the patient has already received the
9notification.
10(g) For purposes of this section, “health care decisions” has the
11meaning set fourth in Section 4617 of the Probate Code.
12(h) This section shall not be construed to interfere with the
13clinical judgment of a health care provider in recommending the
14course of treatment.
Section 1317.5 of the Health and Safety Code, as
16amended by Section 92 of Chapter 886 of the Statutes of 1989, is
17repealed.
(a)
All alleged violations of this article and the
19regulations adopted hereunder shall be investigated by the state
20department. The state department, with the agreement of the local
21EMS agency, may refer violations of this article to the local EMS
22agency for investigation. The investigation shall be conducted
23pursuant to procedures established by the state department and
24shall be completed no later than 60 days after the report of apparent
25violation is received by the state department.
26(b)
At the conclusion of its investigation, the state department
27or the local EMS agency shall refer any alleged violation by a
28physician to the Medical Board of California unless it is determined
29that the complaint is without a reasonable basis.
Section 1339.9 of the Health and Safety Code, as
31added by Section 1 of Chapter 716 of the Statutes of 1998, is
32amended and renumbered to read:
(a) Thebegin delete stateend delete department may request and maintain
35employment information for nurse assistants and direct care staff
36of intermediate care facilities/developmentally disabled, other than
37state-operated intermediate care facilities/developmentally disabled
38that secure criminal record clearances for employees through
39another method, intermediate care facilities/developmentally
P306 1disabled-habilitative, or intermediate care
2facilities/developmentally disabled-nursing.
3(b)
Within five working days of receipt of a criminal record or
4information from the Department of Justice pursuant to Section
51338.5, thebegin delete stateend delete department shall notify the licensee and applicant
6of any criminal convictions.
7(c) Thebegin delete stateend delete department shall conduct a feasibility study to
8assess the additional technology requirements necessary to include
9previous and current employment information on its registry and
10to make that information available to potential employers. The
11begin delete stateend delete department shall report to the Legislature by July 1, 2000, as
12to the results of the study.
Section 1347.5 of the Health and Safety Code is
14amended to read:
(a) A health care service plan providing individual
16coverage in the Exchange shall cooperate with requests from the
17Exchange to collaborate in the development of, and participate in
18the implementation of, the Medi-Cal program’s premium and
19cost-sharing payments under Sections 14102 and 14148.65 of the
20Welfare and Institutions Code for eligible Exchange enrollees.
21(b) A health care service plan providing individual coverage in
22the Exchange shall not charge, bill, ask, or require an enrollee
23receiving benefits under Section 14102 orbegin delete Sectionend delete 14148.65 of the
24Welfare and Institutions Code to make any premium or cost-sharing
25payments for any services that are subject to premium or
26
cost-sharing payments by the State Department of Health Care
27Services under Section 14102 orbegin delete Sectionend delete 14148.65 of the Welfare
28and Institutions Code.
29(c) For purposes of this section, “Exchange” means the
30California Health Benefit Exchange established pursuant to Title
3122 (commencing with Section 100500) of the Government Code.
Section 1357.504 of the Health and Safety Code is
33amended to read:
(a) With respect to small employer health care
35service plan contracts offered outside the Exchange, after a small
36employer submits a completed application form for a plan contract,
37the health care service plan shall, within 30 days, notify the
38employer of the employer’s actual premium charges for that plan
39contract established in accordance with Section 1357.512. The
P307 1employer shall have 30 days in which to exercise the right to buy
2coverage at the quoted premium charges.
3(b) Except as provided in subdivision (c), when a small employer
4submits a premium payment, based on the quoted premium charges,
5and that payment is delivered or postmarked, whichever occurs
6earlier, within the first 15 days of the month, coverage under the
7plan contract shall become effective no
later than the first day of
8the following month. When that payment is neither delivered nor
9postmarked until after the 15th day of a month, coverage shall
10become effective no later than the first day of the second month
11following delivery or postmark of the payment.
12(c) (1) With respect to a small employer health care service
13plan contract offered through the Exchange, a plan shall apply
14coverage effective dates consistent with those required under
15Section 155.720 of Title 45 of the Code of Federal Regulations
16andbegin delete paragraph (2)end delete of subdivision (e) of Section 1399.849.
17(2) With respect to a small employer health care service plan
18contract offered outside the Exchange for which an individual
19applies during a special enrollment period described in subdivision
20(b) of Section
1357.503, the following provisions shall apply:
21(A) Coverage under the plan contract shall become effective no
22later than the first day of the first calendar month beginning after
23the date the plan receives the request for special enrollment.
24(B) Notwithstanding subparagraph (A), in the case of a birth,
25adoption, or placement for adoption, coverage under the plan
26contract shall become effective on the date of birth, adoption, or
27placement for adoption.
28(d) During the first 30 days after the effective date of the plan
29contract, the small employer shall have the option of changing
30coverage to a different plan contract offered by the same health
31care service plan. If a small employer notifies the plan of the
32change within the first 15 days of a month, coverage under the
33new plan contract shall become effective no later
than the first day
34of the following month. If a small employer notifies the plan of
35the change after the 15th day of a month, coverage under the new
36plan contract shall become effective no later than the first day of
37the second month following notification.
38(e) All eligible employees and dependents listed on a small
39employer’s completed application shall be covered on the effective
40date of the health benefit plan.
Section 1358.18 of the Health and Safety Code is
2amended to read:
In the interest of full and fair disclosure, and tobegin delete assureend delete
4begin insert ensureend insert the availability of necessary consumer information to
5potential subscribers or enrollees not possessing a special
6knowledge of Medicare, health care service plans, or Medicare
7supplement contracts, an issuer shall comply with the following
8provisions:
9(a) Application forms shall include the following questions
10designed to elicit information as to whether, as of the date of the
11application, the applicant currently has Medicare supplement,
12Medicare Advantage, Medi-Cal coverage, or another
health
13insurance policy or certificate or plan contract in force or whether
14a Medicare supplement contract is intended to replace any other
15disability policy or certificate, or plan contract, presently in force.
16A supplementary application or other form to be signed by the
17applicant and solicitor containing those questions and statements
18may be used.
22(1) You do not need more than one Medicare supplement policy
23or contract.
24(2) If you purchase this contract, you may want to evaluate your
25existing health coverage and decide if you need multiple coverages.
26(3) You may be eligible for benefits under Medi-Cal or Medicaid
27and may not need a Medicare supplement contract.
28(4) Ifbegin insert,end insert
after purchasing this contractbegin insert,end insert you become eligible for
29Medi-Cal, the benefits and premiums under your Medicare
30supplement contract can be suspended, if requested, during your
31entitlement to benefits under Medi-Cal or Medicaid for 24 months.
32You must request this suspension within 90 days of becoming
33eligible for Medi-Cal or Medicaid. If you are no longer entitled to
34Medi-Cal or Medicaid, your suspended Medicare supplement
35contract orbegin insert,end insert if that is no longer available, a substantially equivalent
36contract, will be reinstituted if requested within 90 days of losing
37Medi-Cal or Medicaid eligibility. If the Medicare supplement
38contract provided coverage for outpatient prescription drugs and
39you enrolled in Medicare Part D while your contract was
40suspended, the reinstituted contract will
not have outpatient
P309 1prescription drug coverage, but will otherwise be substantially
2equivalent to your coverage before the date of the suspension.
3(5) If you are eligible for, and have enrolled in, a Medicare
4supplement contract by reason of disability and you later become
5covered by an employer or union-based group health plan, the
6benefits and premiums under your Medicare supplement contract
7can be suspended, if requested, while you are covered under the
8employer or union-based group health plan. If you suspend your
9Medicare supplement contract under these circumstances and later
10lose your employer or union-based group health plan, your
11suspended Medicare supplement contract orbegin insert,end insert if that is no longer
12available, a substantially equivalent contract, will be reinstituted
13if requested within 90 days of losing your employer or union-based
14
group health plan. If the Medicare supplement contract provided
15coverage for outpatient prescription drugs and you enrolled in
16Medicare Part D while your contract was suspended, the
17reinstituted contract will not have outpatient prescription drug
18coverage, but will otherwise be substantially equivalent to your
19coverage before the date of the suspension.
20(6) Counseling services are available in this state to provide
21advice concerning your purchase of Medicare supplement coverage
22and concerning medical assistance through the Medi-Cal or
23Medicaid Program, including benefits as a qualified Medicare
24beneficiary (QMB) and a specified low-income Medicare
25beneficiary (SLMB). Information regarding counseling services
26may be obtained from the California Department of Aging.
30If you lost or are losing other health insurance coverage and
31received a
notice from your prior insurer saying you were eligible
32for guaranteed issue of a Medicare supplement insurance contract
33or that you had certain rights to buy such a contract, you may be
34guaranteed acceptance in one or more of our Medicare supplement
35plans. Please include a copy of the notice from your prior insurer
36with your application. PLEASE ANSWER ALL QUESTIONS.
37[Please mark Yes or No below with an “X.”]
38To the best of your knowledge,
39(1) (a) Did you turn 65 years of age in the last 6 months
40Yes____ No____
P310 1(b) Did you enroll in Medicare Part B in the last 6 months
2Yes____ No____
3(c) If yes, what is the effective date ___________________
4(2) Are you covered for medical assistance through California’s
5Medi-Cal program
6NOTE TO APPLICANT: If you have a share of cost under the
7Medi-Cal program, please answer NO to this question.
8Yes____ No____
9If yes,
10(a) Will Medi-Cal pay your premiums for this Medicare
11supplement contract
12Yes____ No____
13(b) Do you receive benefits from Medi-Cal OTHER THAN
14payments toward your Medicare Part B premium
15Yes____ No____
16(3) (a) If you had coverage from any Medicare plan other than
17
original Medicare within the past 63 days (for example, a Medicare
18Advantage plan or a Medicare HMO or PPO), fill in your start and
19end dates below. If you are still covered under this plan, leave
20“END” blank.
21START __/__/__ END __/__/__
22(b) If you are still covered under the Medicare plan, do you
23intend to replace your current coverage with this new Medicare
24supplement contract
25Yes____ No____
26(c) Was this your first time in this type of Medicare plan
27Yes____ No____
28(d) Did you drop a Medicare supplement contract to enroll in
29the Medicare plan
30Yes____ No____
31(4) (a) Do you have another Medicare supplement policy or
32certificate or contract in force
33Yes____ No____
34(b) If so, with what company, and what plan do you have
35[optional for Direct Mailers]
36Yes____ No____
37(c) If so, do you intend to replace your current Medicare
38supplement policy or certificate or contract with this contract
39Yes____ No____
P311 1(5) Have you had coverage under any other health insurance
2within the past 63 days (For example, an employer, union, or
3individual plan)
4Yes____ No____
5(a) If so, with what companies and what kind of policy
6________________________________________________
7________________________________________________
8________________________________________________
9________________________________________________
10(b) What are your dates of coverage under the other policy
11START __/__/__ END __/__/__
12(If you are still covered under the other policy, leave “END”
13blank).begin insert”end insert
15(b) Solicitors shall list any other health insurance policies or
16plan contracts they have sold to the applicant as follows:
17(1) List policies and contracts sold that are still in force.
18(2) List policies and contracts sold in the past five years that
19are no longer in force.
20(c) An issuer issuing Medicare supplement contracts without a
21solicitor or solicitor firm (a direct response issuer) shall return to
22the applicant, upon delivery of the contract, a copy of the
23application or supplemental forms, signed by the applicant and
24acknowledged by the issuer.
25(d) Upon determining that a sale will involve replacement of
26Medicare supplement coverage,begin delete anyend deletebegin insert
anend insert issuer, other than a direct
27response issuer, or its agent, shall furnish the applicant, prior to
28issuance for delivery of the Medicare supplement contract, a notice
29regarding replacement of Medicare supplement coverage. One
30copy of the notice signed by the applicant and the agent, except
31where the coverage is sold without an agent, shall be provided to
32the applicant and an additional signed copy shall be retained by
33the issuer. A direct response issuer shall deliver to the applicant
34at the time of the issuance of the contract the notice regarding
35replacement of Medicare supplement coverage.
36(e) The notice required by subdivision (d) for an issuer shall be
37provided in substantially the following form in no less than
3812-point type:
6(Company name and address)
7
8SAVE THIS NOTICE! IT MAY BE IMPORTANT TO YOU IN
9THE FUTURE
11According to [your application] [information you have
12furnished], you intend to lapse or otherwise terminate an existing
13Medicare supplement policy or contract or Medicare Advantage
14plan and replace it with a contract to be issued by [Plan Name].
15Your contract to be issued by [Plan Name] will provide 30 days
16within which you may decide without cost whether you desire to
17keep the contract. You should review this new coverage carefully.
18Compare it with all accident and sickness coverage you now have.
19Terminate your present policy or contract only if, after due
20consideration, you find that purchase of this Medicare supplement
21coverage is a wise decision.
23STATEMENT TO
APPLICANT BY PLAN, SOLICITOR,
24SOLICITOR FIRM, OR OTHER REPRESENTATIVE:
25(1) I have reviewed your current medical or health coverage.
26To the best of my knowledge, the replacement of coverage involved
27in this transaction does not duplicate coverage or, if applicable,
28Medicare Advantage coverage because you intend to terminate
29your existing Medicare supplement coverage or leave your
30Medicare Advantage plan. The replacement contract is being
31purchased for the following reason (check one):
32__ Additional benefits.
33__ No change in benefits, but lower premiums or charges.
34__ Fewer benefits and lower premiums or charges.
35__ Plan has outpatient prescription drug coverage and applicant
36is
enrolled in Medicare Part D.
37__ Disenrollment from a Medicare Advantage plan. Reasons for
38disenrollment:
39__ Other. (please specify) ________.
P313 1(2) If the issuer of the Medicare supplement contract being
2applied for does not impose, or is otherwise prohibited from
3imposing, preexisting condition limitations, please skip to statement
43 below. Health conditions that you may presently have
5(preexisting conditions) may not be immediately or fully covered
6under the new contract. This could result in denial or delay of a
7claim for benefits under the new contract, whereas a similar claim
8might have been payable under your present contract.
9(3) State law provides that your replacement Medicare
10supplement contract may not contain new preexisting conditions,
11
waiting periods, elimination periods, or probationary periods. The
12plan will waive any time periods applicable to preexisting
13conditions, waiting periods, elimination periods, or probationary
14periods in the new coverage for similar benefits to the extent that
15time was spent (depleted) under the original contract.
16(4) If you still wish to terminate your present policy or contract
17and replace it with new coverage, be certain to truthfully and
18completely answer any and all questions on the application
19concerning your medical and health history. Failure to include all
20material medical information on an application requesting that
21information may provide a basis for the plan to deny any future
22claims and to refund your prepaid or periodic payment as though
23your contract had never been in force. After the application has
24been completed and before you sign it, review it carefully to be
25certain that all information has been properly recorded.
26(5) Do not cancel your present Medicare supplement coverage
27until you have received your new contract and are sure you want
28to keep it.
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38(f) The application form or other consumer information for
39persons eligible for Medicare and used by an issuer shall containbegin insert,end insert
40 as an attachmentbegin insert,end insert a Medicare supplement buyer’s guide in the form
P314 1approved by the director. The application or other consumer
2information, containingbegin insert,end insert as an attachmentbegin insert,end insert the buyer’s guide, shall
3be mailed or delivered to each applicant applying for that coverage
4at or before the time of application and, to establish compliance
5with this subdivision, the issuer shall obtain an acknowledgment
6of receipt
of the attached buyer’s guide from each applicant. No
7issuer shall make use of or otherwise disseminate any buyer’s
8guide that does not accurately outline current Medicare supplement
9benefits. No issuer shall be required to provide more than one copy
10of the buyer’s guide to any applicant.
11(g) An issuer may comply with the requirement of this section
12in the case of group contracts by causing the subscriber (1) to
13disseminate copies of the disclosure form containing as an
14attachment the buyer’s guide to all persons eligible under the group
15contract at the time those persons are offered the Medicare
16supplement plan, and (2) collecting and forwarding to the issuer
17an acknowledgment of receipt of the disclosure form containingbegin insert,end insert
18
as an attachmentbegin insert,end insert
the buyer’s guide from each enrollee.
19(h) An issuer shall not require, request, or obtain health
20information as part of the application process for an applicant who
21is eligible for guaranteed issuance of, or open enrollment for, any
22Medicare supplement coverage pursuant to Section 1358.11 or
231358.12, except for purposes of paragraph (1) or (2) of subdivision
24(a) of Section 1358.11 when the applicant is first enrolled in
25Medicare Part B. The application form shall include a clear and
26conspicuous statement that the applicant is not required to provide
27health information during a period where guaranteed issue or open
28enrollment applies, as specified in Section 1358.11 or 1358.12,
29except for purposes of paragraph (1) or (2) of subdivision (a) of
30Section 1358.11 when the applicant is first enrolled in Medicare
31Part B, and shall inform the applicant of those periods of
32guaranteed issuance of Medicare supplement coverage. This
33
subdivisionbegin delete shallend deletebegin insert doesend insert not prohibit an issuer from requiring proof
34of eligibility for a guaranteed issuance of Medicare supplement
35coverage.
Section 1367.004 of the Health and Safety Code is
37amended to read:
(a) A health care service plan that issues, sells,
39renews, or offers a specialized health care service plan contract
40covering dental services shall, no later than September 30, 2015,
P315 1and each year thereafter, file a report, which shall be known as the
2MLR annual report, with the department that is organized by
3market and product type and contains the same information
4required in the 2013 federal Medical Loss Ratio (MLR) Annual
5Reporting Form (CMS-10418).
6(b) The MLR reporting year shall be for the calendar year during
7which dental coverage is provided by the plan. All terms used in
8the MLR annual report shall have the same meaning as used in the
9federal Public Health Service Act (42 U.S.C. Sec. 300gg-18), Part
10158 (commencing withbegin insert
Sectionend insert
158.101) of Title 45 of the Code
11of Federal Regulations, and Section 1367.003.
12(c) If the director decides to conduct a financial examination,
13as described in Section 1382, because the director finds it necessary
14to verify the health care service plan’s representations in the MLR
15annual report, the department shall provide the health care service
16plan with a notification 30 days before the commencement of the
17financial examination.
18(d) The health care service plan shall have 30 days from the
19date of notification to electronically submit to the department all
20requested records, books, and papers specified in subdivision (a)
21of Section 1381. The director may extend the time for a health
22care service plan to comply with this subdivision upon a finding
23of good cause.
24(e) The department shall make available
to the public all of the
25data provided to the department pursuant to this section.
26(f) This section does not apply to a health care service plan
27contract issued, sold, renewed, or offered for health care services
28or coverage provided in the Medi-Cal program (Chapter 7
29(commencing with Section 14000) of Part 3 of Division 9 of the
30Welfare and Institutions Code), the Healthy Families Program
31(Part 6.2 (commencing with Section 12693) of Division 2 of the
32Insurance Code), the Access for Infants and Mothers Program
33(Part 6.3 (commencing with Section 12695) of Division 2 of the
34Insurance Code), the California Major Risk Medical Insurance
35Program (Part 6.5 (commencing with Section 12700) of Division
362 of the Insurance Code), or the Federal Temporary High Risk
37Insurance Pool (Part 6.6 (commencing with Section 12739.5) of
38Division 2 of the Insurance Code), to the extent consistent with
39the federal Patient Protection and Affordable Care Act (Public
40Law
111-148).
P316 1(g) It is the intent of the Legislature that the data reported
2pursuant to this section be considered by the Legislature in adopting
3a medical loss ratio standard for health care service plans that cover
4dental services that would take effect no later than January 1, 2018.
5(h) Until January 1, 2018, the director may issue guidance to
6health care service plans subject to this section regarding
7compliance with this section. This guidance shall not be subject
8to the Administrative Procedure Act (Chapter 3.5 (commencing
9with Section 11340) of Part 1 of Division 3 of Title 2 of the
10Government Code). Any guidance issued pursuant to this
11subdivision shall be effective only until the director adopts
12regulations pursuant to the Administrative Procedure Act. The
13department shall consult with the Department of Insurance in
14issuing guidance pursuant to this
subdivision.
Section 1367.035 of the Health and Safety Code is
16amended to read:
(a) As part of the reports submitted to the
18department pursuant to subdivision (f) of Section 1367.03 and
19regulations adopted pursuant to that section, a health care service
20plan shall submit to the department, in a manner specified by the
21department, data regarding network adequacy, including, but not
22limited to, the following:
23(1) Provider office location.
24(2) Area of specialty.
25(3) Hospitals where providers have admitting privileges, if any.
26(4) Providers with open practices.
27(5) The number of patients
assigned to a primary care provider
28or, for providers who do not have assigned enrollees, information
29that demonstrates the capacity of primary care providers to be
30accessible and available to enrollees.
31(6) Grievances regarding network adequacy and timely access
32that the health care service plan received during the preceding
33calendar year.
34(b) A health care service plan that uses a network for its
35Medi-Cal managed care product line that is different from the
36network used for its other product lines shall submit the data
37required under subdivision (a) for its Medi-Cal managed care
38product line separately from the data submitted for its other product
39lines.
P317 1(c) A health care service plan that uses a network for its
2individual market product line that is different from the network
3used for its small group market
product line shall submit the data
4required under subdivision (a) for its individual market product
5line separate from the data submitted for its small group market
6product line.
7(d) The department shall review the data submitted pursuant to
8this section for compliance with this chapter.
9(e) In submitting data under this section, a health care service
10plan that provides services to Medi-Cal beneficiaries pursuant to
11Chapter 7 (commencing with Section 14000) or Chapter 8
12(commencing with Section 14200) of Part 3 of Division 9 of the
13Welfare and Institutionsbegin delete Code,end deletebegin insert Codeend insert shall provide the same data
14to the State Department of Health Care Services pursuant to Section
1514456.3 of the Welfare and
Institutions Code.
16(f) In developing the format and requirements for reports, data,
17or other information provided by plans pursuant to subdivision
18(a), the department shall not create duplicate reporting
19requirements, but, instead, shall take into consideration all existing
20relevant reports, data, or other information provided by plans to
21the department. This subdivision does not limit the authority of
22the department to request additional information from the plan as
23deemed necessary to carry out and complete any enforcement
24action initiated under this chapter.
25(g) If the department requests additional information or data to
26be reported pursuant to subdivision (a), which is different or in
27addition to the information required to be reported in paragraphs
28(1) to (6), inclusive, of subdivision (a), the department shall provide
29health care service plans notice of that change by
November 1 of
30the year prior to the change.
31(h) A health care service plan may include in the provider
32contract provisions requiring compliance with the reporting
33requirements of Section 1367.03 and this section.
Section 1367.20 of the Health and Safety Code, as
35added by Section 2 of Chapter 68 of the Statutes of 1998, is
36repealed.
Every health care service plan that provides
38prescription drug benefits and maintains one or more drug
39formularies shall provide to members of the public, upon request,
40a copy of the most current list of prescription drugs on the
P318 1formulary of the plan by major therapeutic category, with an
2indication of whether any drugs on the list are preferred over other
3listed drugs. If the health care service plan maintains more than
4one formulary, the plan shall notify the requester that a choice of
5formulary lists is available.
Section 1367.25 of the Health and Safety Code is
7amended to read:
(a) A group health care service plan contract, except
9for a specialized health care service plan contract, that is issued,
10amended, renewed, or delivered on or after January 1, 2000,
11through December 31, 2015, inclusive, and an individual health
12care service plan contract that is amended, renewed, or delivered
13on or after January 1, 2000, through December 31, 2015, inclusive,
14except for a specialized health care service plan contract, shall
15provide coverage for the following, under general terms and
16conditions applicable to all benefits:
17(1) A health care service plan contract that provides coverage
18for outpatient prescription drug benefits shall include coverage for
19a variety of federal Food and Drug Administrationbegin delete (FDA) approvedend delete
20begin insert
(FDA)-approvedend insert prescription contraceptive methods designated
21by the plan. In the event the patient’s participating provider, acting
22within his or her scope of practice, determines that none of the
23methods designated by the plan is medically appropriate for the
24patient’s medical or personal history, the plan shall also provide
25coverage for anotherbegin delete FDA approved,end deletebegin insert FDA-approved,end insert medically
26appropriate prescription contraceptive method prescribed by the
27patient’s provider.
28(2) Benefits for an enrollee under this subdivision shall be the
29same for an enrollee’s covered spouse and covered nonspouse
30dependents.
31(b) (1) A health care service
plan contract, except for a
32specialized health care service plan contract, that is issued,
33amended, renewed, or delivered on or after January 1, 2016, shall
34provide coverage for all of the following services and contraceptive
35methods for women:
36(A) Except as provided in subparagraphs (B) and (C) of
37paragraph (2), all FDA-approved contraceptive drugs, devices,
38and other products for women, including all FDA-approved
39contraceptive drugs, devices, and products available over the
40counter, as prescribed by the enrollee’s provider.
P319 1(B) Voluntary sterilization procedures.
2(C) Patient education and counseling on contraception.
3(D) Followup services related to the drugs, devices, products,
4and procedures covered under this subdivision, including, but not
5limited
to, management of side effects, counseling for continued
6adherence, and device insertion and removal.
7(2) (A) Except for a grandfathered health plan, a health care
8service plan subject to this subdivision shall not impose a
9deductible, coinsurance, copayment, or any other cost-sharing
10requirement on the coverage provided pursuant to this subdivision.
11Cost sharing shall not be imposed on any Medi-Cal beneficiary.
12(B) begin deleteWhere end deletebegin insertIf end insertthe FDA has approved one or more therapeutic
13equivalents of a contraceptive drug, device, or product, a health
14care service plan is not required to cover all of those therapeutically
15equivalent versions in accordance with this subdivision, as long
16as
at least one is covered without cost sharing in accordance with
17this subdivision.
18(C) If a covered therapeutic equivalent of a drug, device, or
19product is not available, or is deemed medically inadvisable by
20the enrollee’s provider, a health care service plan shall provide
21coverage, subject to a plan’s utilization management procedures,
22for the prescribed contraceptive drug, device, or product without
23cost sharing. Any request by a contracting provider shall be
24responded to by the health care service plan in compliance with
25the Knox-Keene Health Care Service Plan Act of 1975, as set forth
26in this chapter and, as applicable, with the plan’s Medi-Cal
27managed care contract.
28(3) Except as otherwise authorized under this section, a health
29care service plan shall not impose any restrictions or delays on the
30coverage required under this subdivision.
31(4) Benefits for an enrollee under this subdivision shall be the
32same for an enrollee’s covered spouse and covered nonspouse
33dependents.
34(5) For purposes of paragraphs (2) and (3) of this subdivision,
35“health care service plan” shall include Medi-Cal managed care
36plans that contract with the State Department of Health Care
37Services pursuant to Chapter 7 (commencing with Section 14000)
38and Chapter 8 (commencing with Section 14200) of Part 3 of
39Division 9 of the Welfare and Institutions Code.
P320 1(c) Notwithstanding any other provision of this section, a
2religious employer may request a health care service plan contract
3without coverage forbegin delete FDA approvedend deletebegin insert
FDA-approvedend insert contraceptive
4methods that are contrary to the religious employer’s religious
5tenets. If so requested, a health care service plan contract shall be
6provided without coverage for contraceptive methods.
7(1) For purposes of this section, a “religious employer” is an
8entity for which each of the following is true:
9(A) The inculcation of religious values is the purpose of the
10entity.
11(B) The entity primarily employs persons who share the
12religious tenets of the entity.
13(C) The entity serves primarily persons who share the religious
14tenets of the entity.
15(D) The entity is a nonprofit organization as described in
16Section 6033(a)(3)(A)(i) or
(iii) of the Internal Revenue Code of
171986, as amended.
18(2) Every religious employer that invokes the exemption
19provided under this section shall provide written notice to
20prospective enrollees prior to enrollment with the plan, listing the
21contraceptive health care services the employer refuses to cover
22for religious reasons.
23(d) begin deleteNothing in this end deletebegin insertThis end insertsection shallbegin insert notend insert be construed to exclude
24coverage for contraceptive supplies as prescribed by a provider,
25acting within his or her scope of practice, for reasons other than
26contraceptive purposes, such as decreasing the risk of ovarian
27
cancer or eliminating symptoms of menopause, or for contraception
28that is necessary to preserve the life or health of an enrollee.
29(e) begin deleteNothing in this end deletebegin insertThis end insertsection shallbegin insert notend insert be construed to deny
30or restrict in any way the department’s authority to ensure plan
31compliance with this chapter when a plan provides coverage for
32contraceptive drugs, devices, and products.
33(f) begin deleteNothing in this end deletebegin insertThis end insertsection
shallbegin insert notend insert be construed to require
34an individual or group health care service plan contract to cover
35experimental or investigational treatments.
36(g) For purposes of this section, the following definitions apply:
37(1) “Grandfathered health plan” has the meaning set forth in
38Section 1251 of PPACA.
39(2) “PPACA” means the federal Patient Protection and
40Affordable Care Act (Public Law 111-148), as amended by the
P321 1federal Health Care and Education Reconciliation Act of 2010
2(Public Law 111-152), and any rules, regulations, or guidance
3issued thereunder.
4(3) With respect to health care service plan contracts issued,
5amended, or renewed on or after January 1,
2016, “provider” means
6an individual who is certified or licensed pursuant to Division 2
7(commencing with Section 500) of the Business and Professions
8Code, or an initiative act referred to in that division, or Division
92.5 (commencing with Section 1797) of this code.
Section 1368.05 of the Health and Safety Code is
11amended to read:
(a) (1) By enacting this section, which was originally
13enacted by Assembly Bill 922 (Chapter 552 of the Statutes of
142011), the Legislature recognizes that, because of the enactment
15of federal health care reform on March 23, 2010, and the
16implementation of various provisions by January 1, 2014, and the
17ongoing complexities of health care reform, it is appropriate to
18transfer the direct consumer assistance activities that were newly
19conferred on the Office ofbegin delete theend delete Patient Advocate to the Department
20of Managed Health Care, and the Legislature recognizes that these
21new duties are necessary to be carried out by the department in
22partnership with community-based consumer assistance
23organizations for the purposes of serving
California’s health care
24consumers.
25(2) In addition to maintaining the toll-free telephone number
26for the purpose of receiving complaints regarding health care
27service plans as required in Section 1368.02, the department and
28its contractors shall carry out these new responsibilities, which
29include assisting consumers in navigating private and public health
30care coverage and assisting consumers in determining the regulator
31that regulates the health care coverage of a particular consumer.
32In order to further assist in implementing health care reform, the
33department and its contractors shall also receive and respond to
34inquiries, complaints, and requests for assistance and education
35concerning health care coverage available in California.
36(b) (1) The department shall annually contract with
37community-based organizations in furtherance of providing
38assistance to
consumers as described in subdivision (a), as
39authorized by and in accordance with Section 19130 of the
40Government Code.
P322 1(2) These organizations shall be community-based nonprofit
2consumer assistance programs that shall include in their mission
3the assistance of, and duty to, health care consumers.
4(3) Contracting consumer assistance organizations shall have
5experience in assisting consumers in navigating the local health
6care system, advising consumers regarding their health care
7coverage options, assisting consumers with problems in accessing
8health care services, and serving consumers with special needs,
9including, but not limited to, consumers with limited-English
10language proficiency, consumers requiring culturally competent
11services, low-income consumers, consumers with disabilities,
12consumers with low literacy rates, and consumers with multiple
13health conditions, including
behavioral health. The organizations
14shall also have experience with, and the capacity for, collecting
15and reporting data regarding the consumers they assist, including
16demographic data, source of coverage, regulator, type of problem
17or issue, and resolution of complaints.
Section 1371.36 of the Health and Safety Code, as
19added by Section 5 of Chapter 825 of the Statutes of 2000, is
20repealed.
(a)
A health care service plan shall not deny payment
22of a claim on the basis that the plan, medical group, independent
23practice association, or other contracting entity did not provide
24authorization for health care services that were provided in a
25licensed acute care hospital and that were related to services that
26were previously authorized, if all of the following conditions are
27met:
28(1)
It was medically necessary to provide the services at the
29time.
30(2)
The services were provided after the plan’s normal business
31hours.
32(3)
The plan does not maintain a system that provides for the
33availability of a plan representative or an alternative means of
34contact through an electronic system, including voicemail or
35electronic mail, whereby the plan can respond to a request for
36authorization within 30 minutes of the time that a request was
37made.
38(b)
This section shall not apply to investigational or
39experimental therapies, or other noncovered services.
Section 1371.37 of the Health and Safety Code, as
2added by Section 6 of Chapter 825 of the Statutes of 2000, is
3repealed.
(a)
A health care service plan is prohibited from
5engaging in an unfair payment pattern, as defined in this section.
6(b)
Consistent with subdivision (a) of Section 1371.39, the
7director may investigate a health care service plan to determine
8whether it has engaged in an unfair payment pattern.
9(c)
An “unfair payment pattern,” as used in this section, means
10any of the following:
11(1)
Engaging in a demonstrable and unjust pattern, as defined
12by the department, of reviewing or processing complete and
13accurate claims that results in payment delays.
14(2)
Engaging in a demonstrable and unjust pattern, as defined
15by the department, of reducing the amount of payment or denying
16complete and accurate claims.
17(3)
Failing on a repeated basis to pay the uncontested portions
18of a claim within the timeframes specified in Section 1371, 1371.1,
19or 1371.35.
20(4)
Failing on a repeated basis to automatically include the
21interest due on claims pursuant to Section 1371.
22(d)
(1)
Upon a final determination by the director that a health
23care service plan has engaged in an unfair payment pattern, the
24director may:
25(A) Impose monetary penalties as permitted under this chapter.
26(B)
Require the health care service plan for a period of three
27years from the date of the director’s determination, or for a shorter
28period prescribed by the director, to pay complete and accurate
29claims from the provider within a shorter period of time than that
30required by Section 1371. The provisions of this subparagraph
31shall not become operative until January 1, 2002.
32(C)
Include a claim for costs incurred by the department in any
33administrative or judicial action, including investigative expenses
34and the cost to monitor compliance by the plan.
35(2)
For any overpayment made by a health care service plan
36while subject to the provisions of paragraph (1), the provider shall
37remain liable to the plan for repayment pursuant to Section 1371.1.
38(e)
The enforcement remedies provided in this section are not
39exclusive and shall not limit or preclude the use of any otherwise
40available criminal, civil, or administrative remedy.
P324 1(f)
The penalties set forth in this section shall not preclude,
2suspend, affect, or impact any other duty, right, responsibility, or
3obligation under a statute or under a contract between a health care
4service plan and a provider.
5(g)
A health care service plan may not delegate any statutory
6liability under this section.
7(h)
For the purposes of this section, “complete and accurate
8claim” has the same meaning as that provided in the regulations
9adopted by the department pursuant to subdivision (a) of Section
101371.38.
11(i)
On or before December 31, 2001, the department shall report
12to the Legislature and the Governor information regarding the
13development of the definition of “unjust pattern” as used in this
14section. This report shall include, but not be limited to, a
15description of the process used and a list of the parties involved
16in the department’s development of this definition as well as
17recommendations for statutory adoption.
18(j)
The department shall make available upon request and on
19its web site, information regarding actions taken pursuant to this
20section, including a description of the activities that were the basis
21for the action.
Section 1371.38 of the Health and Safety Code, as
23added by Section 7 of Chapter 825 of the Statutes of 2000, is
24repealed.
(a)
The department shall, on or before July 1, 2001,
26adopt regulations that ensure that plans have adopted a dispute
27resolution mechanism pursuant to subdivision (h) of Section 1367.
28The regulations shall require that any dispute resolution mechanism
29of a plan is fair, fast, and cost-effective for contracting and
30noncontracting providers and define the term “complete and
31accurate claim, including attachments and supplemental
32information or documentation.”
33(b)
On or before December 31, 2001, the department shall
34report to the Governor and the Legislature its recommendations
35for any additional statutory requirements relating to plan and
36provider dispute resolution mechanisms.
Section 1371.39 of the Health and Safety Code, as
38added by Section 8 of Chapter 825 of the Statutes of 2000, is
39repealed.
(a)
Providers may report to the department’s Office
2of Plan and Provider Relations, either through the toll-free provider
3line (877-525-1295) or e-mail address
4(plans-providers@dmhc.ca.gov), instances in which the provider
5believes a plan is engaging in an unfair payment pattern.
6(b)
Plans may report to the department’s Office of Plan and
7Provider Relations, either through the toll-free provider line
8(877-525-1295) or e-mail address (plans-providers@dmhc.ca.gov),
9instances in which the plan believes a provider is engaging in an
10unfair billing pattern.
11(1)
“Unfair billing pattern” means engaging in a demonstrable
12and unjust pattern of unbundling of claims, upcoding of claims,
13or other demonstrable and unjustified billing patterns, as defined
14by the department.
15(2)
The department shall convene appropriate state agencies to
16make recommendations by July 1, 2001, to the Legislature and the
17Governor for the purpose of developing a system for responding
18to unfair billing patterns as defined in this section. This section
19shall include a process by which information is made available to
20the public regarding actions taken against providers for unfair
21billing patterns and the activities that were the basis for the action.
22(c)
On or before December 31, 2001, the department shall report
23to the Legislature and the Governor information regarding the
24development of the definition of “unfair billing pattern” as used
25in this section. This report shall include, but not be limited to, a
26description of the process used and a list of the parties involved
27in the department’s development of this definition as well as
28recommendations for statutory adoption.
Section 1389.4 of the Health and Safety Code, as
30amended by Section 9 of Chapter 2 of the First Extraordinary
31Session of the Statutes of 2013, is amended to read:
(a) A full service health care service plan that issues,
33renews, or amends individual health plan contracts shall be subject
34to this section.
35(b) A health care service plan subject to this section shall have
36written policies, procedures, or underwriting guidelines establishing
37the criteria and process whereby the plan makes its decision to
38provide or to deny coverage to individuals applying for coverage
39and sets the rate for that coverage. These guidelines, policies, or
40procedures shall ensure that the plan rating and underwriting
P326 1criteria comply with Sections 1365.5 and 1389.1 and all other
2applicable provisions of state and federal law.
3(c) On or before June 1, 2006, and annually thereafter, every
4
health care service plan shall file with the department a general
5description of the criteria, policies, procedures, or guidelines the
6plan uses for rating and underwriting decisions related to individual
7health plan contracts, which means automatic declinable health
8conditions, health conditions that may lead to a coverage decline,
9height and weight standards, health history, health care utilization,
10lifestyle, or behavior that might result in a decline for coverage or
11severely limit the plan products for which they would be eligible.
12A plan may comply with this section by submitting to the
13department underwriting materials or resource guides provided to
14plan solicitors or solicitor firms, provided that those materials
15include the information required to be submitted by this section.
16(d) Commencing January 1, 2011, the director shall post on the
17department’s Internet Web site, in a manner accessible and
18understandable to consumers, general,
noncompany specific
19information about rating and underwriting criteria and practices
20in the individual market and information about the California Major
21Risk Medical Insurance Program (Part 6.5 (commencing with
22Section 12700) of Division 2 of the Insurance Code) and the federal
23temporary high risk pool established pursuant to Part 6.6
24(commencing with Section 12739.5) of Division 2 of the Insurance
25Code. The director shall develop the information for the Internet
26Web site in consultation with the Department of Insurance to
27enhance the consistency of information provided to consumers.
28Information about individual health coverage shall also include
29the following notification:
30“Please examine your options carefully before declining group
31coverage or continuation coverage, such as COBRA, that may be
32available to you. You should be aware that companies selling
33individual health insurance typically require a review of your
34medical history that could result in a higher
premium or you could
35be denied coverage entirely.”
36(e) begin deleteNothing in this section shall end deletebegin insertThis section does not end insertauthorize
37public disclosure of company specific rating and underwriting
38criteria and practices submitted to the director.
39(f) This sectionbegin delete shallend deletebegin insert doesend insert not apply to a closed block of
40business, as defined in Section 1367.15.
P327 1(g) (1) This section shall become inoperative on November 1,
22013, or the 91st calendar day
following the adjournment of the
32013-14 First Extraordinary Session, whichever date is later.
4(2) If Section 5000A of the Internal Revenue Code, as added
5by Section 1501 of PPACA, is repealed or amended to no longer
6apply to the individual market, as defined in Section 2791 of the
7federal Public Health Service Act (42 U.S.C. Sec.begin delete 300gg-4end delete
8begin insert 300gg-91end insert), this section shall become operative 12 months after
9the date of that repeal or amendment.
Section 1389.4 of the Health and Safety Code, as
11added by Section 10 of Chapter 2 of the First Extraordinary Session
12of the Statutes of 2013, is amended to read:
(a) A full service health care service plan that renews
14individual grandfathered health benefit plans shall be subject to
15this section.
16(b) A health care service plan subject to this section shall have
17written policies, procedures, or underwriting guidelines establishing
18the criteria and process whereby the plan makes its decision to
19provide or to deny coverage to dependents applying for an
20individual grandfathered health plan and sets the rate for that
21coverage. These guidelines, policies, or procedures shall ensure
22that the plan rating and underwriting criteria comply with Sections
231365.5 and 1389.1 and all other applicable provisions of state and
24federal law.
25(c) On or before the June 1 next
following the operative date of
26this section, and annually thereafter, every health care service plan
27shall file with the department a general description of the criteria,
28policies, procedures, or guidelines the plan uses for rating and
29underwriting decisions related to individual grandfathered health
30plans, which means automatic declinable health conditions, health
31conditions that may lead to a coverage decline, height and weight
32standards, health history, health care utilization, lifestyle, or
33behavior that might result in a decline for coverage or severely
34limit the plan products for which they would be eligible. A plan
35may comply with this section by submitting to the department
36underwriting materials or resource guides provided to plan
37solicitors or solicitor firms, provided that those materials include
38the information required to be submitted by this section.
P328 1(d) begin deleteNothing in this section shall end deletebegin insertThis
section does not end insertauthorize
2public disclosure of company specific rating and underwriting
3criteria and practices submitted to the director.
4(e) For purposes of this section, the following definitions shall
5apply:
6(1) “PPACA” means the federal Patient Protection and
7Affordable Care Act (Public Law 111-148), as amended by the
8federal Health Care and Education Reconciliation Act of 2010
9(Public Law 111-152), and any rules, regulations, or guidance
10issued pursuant to that law.
11(2) “Grandfathered health plan” has the same meaning as that
12term is defined in Section 1251 of PPACA.
13(f) (1) This section shall become operative on November 1,
142013, or the 91st calendar day following the adjournment of the
152013-14 First
Extraordinary Session, whichever date is later.
16(2) If Section 5000A of the Internal Revenue Code, as added
17by Section 1501 of PPACA, is repealed or amended to no longer
18apply to the individual market, as defined in Section 2791 of the
19federal Public Health Service Act (42 U.S.C. Sec.begin delete 300gg-4end delete
20begin insert 300gg-91end insert), this section shall become inoperative 12 months after
21the date of that repeal or amendment.
Section 1389.5 of the Health and Safety Code is
23amended to read:
(a) This sectionbegin delete shall applyend deletebegin insert appliesend insert to a health care
25service plan that provides coverage under an individual plan
26contract that is issued, amended, delivered, or renewed on or after
27January 1, 2007.
28(b) At least once each year, the health care service plan shall
29permit an individual who has been covered for at least 18 months
30under an individual plan contract to transfer, without medical
31underwriting, to any other individual plan contract offered by that
32same health care service plan that provides equal or lesser benefits,
33as determined by the plan.
34“Without medical underwriting” means that the health care
35service plan shall not decline to offer coverage to, or deny
36enrollment of, the individual or impose any preexisting condition
37exclusion on the individual who transfers to another individual
38plan contract pursuant to this section.
39(c) The plan shall establish, for the purposes of subdivision (b),
40a ranking of the individual plan contracts it offers to individual
P329 1purchasers and post the ranking on its Internet Web site or make
2the ranking available upon request. The plan shall update the
3ranking whenever a new benefit design for individual purchasers
4is approved.
5(d) The plan shall notify in writing all enrollees of the right to
6transfer to another individual plan contract pursuant to this section,
7at a minimum, when the plan changes the enrollee’s premium rate.
8Posting this
information on the plan’s Internet Web site shall not
9constitute notice for purposes of this subdivision. The notice shall
10adequately inform enrollees of the transfer rights provided under
11this section, including information on the process to obtain details
12about the individual plan contracts available to that enrollee and
13advising that the enrollee may be unable to return to his or her
14current individual plan contract if the enrollee transfers to another
15individual plan contract.
16(e) The requirements of this sectionbegin delete shallend deletebegin insert doend insert not apply to the
17following:
18(1) A federally eligible defined individual, as defined in
19subdivision (c) of Section 1399.801, who is enrolled in an
20individual health
benefit plan contract offered pursuant to Section
211366.35.
22(2) An individual offered conversion coverage pursuant to
23Section 1373.6.
24(3) Individual coverage under a specialized health care service
25plan contract.
26(4) An individual enrolled in the Medi-Cal program pursuant
27to Chapter 7 (commencing with Section 14000) of Division 9 of
28Part 3 of the Welfare and Institutions Code.
29(5) An individual enrolled in the Access for Infants and Mothers
30Program pursuant to Part 6.3 (commencing with Section 12695)
31of Division 2 of the Insurance Code.
32(6) An individual enrolled in the Healthy Families Program
33pursuant to Part 6.2 (commencing with Section 12693) of Division
342 of the Insurance Code.
35(f) It is the intent of the Legislature that individuals shall have
36more choice in their health coverage when health care service plans
37guarantee the right of an individual to transfer to another product
38based on the plan’s own ranking system. The Legislature does not
39intend for the department to review or verify the plan’s ranking
40for actuarial or other purposes.
P330 1(g) (1) This section shall become inoperative January 1, 2014,
2or the 91st calendar day following the adjournment of the 2013-14
3First Extraordinary Session, whichever date is later.
4(2) If Section 5000A of the Internal Revenue Code, as added
5by Section 1501 of PPACA, is repealed or amended to no longer
6apply to the individual market, as defined in Section 2791 of the
7federal Public Health Service Act (42 U.S.C. Sec.begin delete 300gg-4end delete
8begin insert
300gg-91end insert), this section shall become operative 12 months after
9the date of that repeal or amendment.
Section 1389.7 of the Health and Safety Code, as
11amended by Section 12 of Chapter 2 of the First Extraordinary
12Session of the Statutes of 2013, is amended to read:
(a) Every health care service plan that offers, issues,
14or renews individual plan contracts shall offer to any individual,
15who was covered under an individual plan contract that was
16rescinded, a new individual plan contract, without medical
17underwriting, that provides equal benefits. A health care service
18plan may also permit an individual, who was covered under an
19individual plan contract that was rescinded, to remain covered
20under that individual plan contract, with a revised premium rate
21that reflects the number of persons remaining on the plan contract.
22(b) “Without medical underwriting” means that the health care
23service plan shall not decline to offer coverage to, or deny
24enrollment of, the individual or impose any preexisting condition
25exclusion on the
individual who is issued a new individual plan
26contract or remains covered under an individual plan contract
27pursuant to this section.
28(c) If a new individual plan contract is issued, the plan may
29revise the premium rate to reflect only the number of persons
30covered on the new individual plan contract.
31(d) Notwithstanding subdivisions (a) and (b), if an individual
32was subject to a preexisting condition provision or a waiting or an
33affiliation period under the individual plan contract that was
34rescinded, the health care service plan may apply the same
35preexisting condition provision or waiting or affiliation period in
36the new individual plan contract. The time period in the new
37individual plan contract for the preexisting condition provision or
38waiting or affiliation period shall not be longer than the one in the
39individual plan contract that was rescinded and the health care
P331 1
service plan shall credit any time that the individual was covered
2under the rescinded individual plan contract.
3(e) The plan shall notify in writing all enrollees of the right to
4coverage under an individual plan contract pursuant to this section,
5at a minimum, when the plan rescinds the individual plan contract.
6The notice shall adequately inform enrollees of the right to
7coverage provided under this section.
8(f) The plan shall provide 60 days for enrollees to accept the
9offered new individual plan contract and this contract shall be
10effective as of the effective date of the original plan contract and
11there shall be no lapse in coverage.
12(g) This sectionbegin delete shallend deletebegin insert
doesend insert not apply to any individual whose
13information in the application for coverage and related
14communications led to the rescission.
15(h) (1) This section shall become inoperative on January 1,
162014, or the 91st calendar day following the adjournment of the
172013-14 First Extraordinary Session, whichever date is later.
18(2) If Section 5000A of the Internal Revenue Code, as added
19by Section 1501 of PPACA, is repealed or amended to no longer
20apply to the individual market, as defined in Section 2791 of the
21federal Public Health Service Act (42 U.S.C. Sec.begin delete 300gg-4end delete
22begin insert 300gg-91end insert), this section shall become operative 12 months after
23the date of
that repeal or amendment.
Section 1389.7 of the Health and Safety Code, as
25added by Section 13 of Chapter 2 of the First Extraordinary Session
26of the Statutes of 2013, is amended to read:
(a) Every health care service plan that offers, issues,
28or renews individual plan contracts shall offer to any individual,
29who was covered by the plan under an individual plan contract
30that was rescinded, a new individual plan contract that provides
31the most equivalent benefits.
32(b) A health care service plan that offers, issues, or renews
33individual plan contracts inside or outside the California Health
34Benefit Exchange may also permit an individual, who was covered
35by the plan under an individual plan contract that was rescinded,
36to remain covered under that individual plan contract, with a
37revised premium rate that reflects the number of persons remaining
38on the individual plan contract consistent with Section 1399.855.
39(c) The plan shall notify in writing all enrollees of the right to
40coverage under an individual plan contract pursuant to this section,
P332 1at a minimum, when the plan rescinds the individual plan contract.
2The notice shall adequately inform enrollees of the right to
3coverage provided under this section.
4(d) The plan shall provide 60 days for enrollees to accept the
5offered new individual plan contract under subdivision (a), and
6this contract shall be effective as of the effective date of the original
7plan contract and there shall be no lapse in coverage.
8(e) This sectionbegin delete shallend deletebegin insert doesend insert not apply to any individual whose
9information in the
application for coverage and related
10communications led to the rescission.
11(f) This sectionbegin delete shall applyend deletebegin insert appliesend insert notwithstanding subdivision
12(a) or (d) of Section 1399.849.
13(g) (1) This section shall become operative on January 1, 2014,
14or the 91st calendar day following the adjournment of the 2013-14
15First Extraordinary Session, whichever date is later.
16(2) If Section 5000A of the Internal Revenue Code, as added
17by Section 1501 of PPACA, is repealed or amended to no longer
18apply to the individual market, as defined in Section 2791 of the
19federal Public Health Service Act (42 U.S.C. Sec.begin delete 300gg-4end delete
20begin insert
300gg-91end insert), this section shall become inoperative 12 months after
21the date of that repeal or amendment.
Section 1399.836 of the Health and Safety Code is
23amended to read:
(a) This article shall become inoperative on January
251, 2014, or the 91st calendar day following the adjournment of the
262013-14 First Extraordinary Session, whichever date is later.
27(b) If Section 5000A of the Internal Revenue Code, as added
28by Section 1501 of PPACA, is repealed or amended to no longer
29apply to the individual market, as defined in Section 2791 of the
30federal Public Health Service Act (42 U.S.C. Sec.begin delete 300gg-4end delete
31begin insert 300gg-91end insert), this article shall become operative 12 months after the
32date of that repeal or amendment.
Section 1399.855 of the Health and Safety Code is
34amended to read:
(a) With respect to individual health benefit plans
36for policy years on or after January 1, 2014, a health care service
37plan may use only the following characteristics of an individual,
38and any dependent thereof, for purposes of establishing the rate
39of the individual health benefit plan covering the individual and
P333 1the eligible dependents thereof, along with the health benefit plan
2selected by the individual:
3(1) Age, pursuant to the age bands established by the United
4States Secretary of Health and Human Services and the age rating
5curve established by the federal Centers for Medicare and Medicaid
6Services pursuant to Section 2701(a)(3) of the federal Public Health
7Service Act (42 U.S.C. Sec. 300gg(a)(3)). Rates based on age shall
8be determined using the
individual’s age as of the date of the health
9benefit plan contract issuance or renewal, as applicable, and shall
10not vary by more than three to one for like individuals of different
11age who are 21 years of age or older as described in federal
12regulations adopted pursuant to Section 2701(a)(3) of the federal
13Public Health Service Act (42 U.S.C. Sec. 300gg(a)(3)).
14(2) (A) Geographic region. The geographic regions for purposes
15of rating shall be the following:
16(i) Region 1 shall consist of the Counties of Alpine, Amador,
17Butte, Calaveras, Colusa, Del Norte, Glenn, Humboldt, Lake,
18Lassen, Mendocino, Modoc, Nevada, Plumas, Shasta, Sierra,
19Siskiyou, Sutter, Tehama, Trinity, Tuolumne, and Yuba.
20(ii) Region 2 shall consist of the Counties of Marin, Napa,
21Solano, and Sonoma.
22(iii) Region 3 shall consist of the Counties of El Dorado, Placer,
23Sacramento, and Yolo.
24(iv) Region 4 shall consist of the City and County of San
25Francisco.
26(v) Region 5 shall consist of the County of Contra Costa.
27(vi) Region 6 shall consist of the County of Alameda.
28(vii) Region 7 shall consist of the County of Santa Clara.
29(viii) Region 8 shall consist of the County of San Mateo.
30(ix) Region 9 shall consist of the Counties of Monterey, San
31Benito, and Santa Cruz.
32(x) Region 10 shall consist of the
Counties of Mariposa, Merced,
33San Joaquin, Stanislaus, and Tulare.
34(xi) Region 11 shall consist of the Counties of Fresno, Kings,
35and Madera.
36(xii) Region 12 shall consist of the Counties of San Luis Obispo,
37Santa Barbara, and Ventura.
38(xiii) Region 13 shall consist of the Counties of Imperial, Inyo,
39and Mono.
40(xiv) Region 14 shall consist of the County of Kern.
P334 1(xv) Region 15 shall consist of the ZIP Codes in the County of
2Los Angeles starting with 906 to 912, inclusive, 915, 917, 918,
3and 935.
4(xvi) Region 16 shall consist of the ZIP Codes in the County of
5Los Angeles other than those identified in clause (xv).
6(xvii) Region 17 shall consist of the Counties of Riverside and
7San Bernardino.
8(xviii) Region 18 shall consist of the County of Orange.
9(xix) Region 19 shall consist of the County of San Diego.
10(B) No later than June 1, 2017, the department, in collaboration
11with the Exchange and the Department of Insurance, shall review
12the geographic rating regions specified in this paragraph and the
13impacts of those regions on the health care coverage market in
14California, and make a report to the appropriate policy committees
15of the Legislature.
16(3) Whether the plan covers an individual or family, as described
17in PPACA.
18(b) The rate for a
health benefit plan subject to this section shall
19not vary by any factor not described in this section.
20(c) With respect to family coverage under an individual health
21benefit plan, the rating variation permitted under paragraph (1) of
22subdivision (a) shall be applied based on the portion of the
23premium attributable to each family member covered under the
24plan. The total premium for family coverage shall be determined
25by summing the premiums for each individual family member. In
26determining the total premium for family members, premiums for
27no more than the three oldest family members who are under 21
28years of age shall be taken into account.
29(d) The rating period for rates subject to this section shall be
30from January 1 to December 31, inclusive.
31(e) This sectionbegin delete shallend deletebegin insert
doesend insert not apply to an individual health
32benefit plan that is a grandfathered health plan.
33(f) The requirement for submitting a report imposed under
34subparagraph (B) of paragraph (2) of subdivision (a) is inoperative
35on June 1, 2021, pursuant to Section 10231.5 of the Government
36Code.
37(g) If Section 5000A of the Internal Revenue Code, as added
38by Section 1501 of PPACA, is repealed or amended to no longer
39apply to the individual market, as defined in Section 2791 of the
40federal Public Health Service Act (42 U.S.C. Sec.begin delete 300gg-4end delete
P335 1begin insert 300gg-91end insert), this section shall become inoperative 12 months after
2the date of that repeal or
amendment.
Section 1502 of the Health and Safety Code is
4amended to read:
As used in this chapter:
6(a) “Community care facility” means any facility, place, or
7building that is maintained and operated to provide nonmedical
8residential care, day treatment, adult day care, or foster family
9agency services for children, adults, or children and adults,
10including, but not limited to, the physically handicapped, mentally
11impaired, incompetent persons, and abused or neglected children,
12and includes the following:
13(1) “Residential facility” means any family home, group care
14facility, or similar facility determined by the director, for 24-hour
15nonmedical care of persons in need of personal services,
16supervision, or assistance essential for sustaining the activities of
17daily living or for the protection of
the individual.
18(2) “Adult day program” means any community-based facility
19or program that provides care to persons 18 years of age or older
20in need of personal services, supervision, or assistance essential
21for sustaining the activities of daily living or for the protection of
22these individuals on less than a 24-hour basis.
23(3) “Therapeutic day services facility” means any facility that
24provides nonmedical care, counseling, educational or vocational
25support, or social rehabilitation services on less than a 24-hour
26basis to persons under 18 years of age who would otherwise be
27placed in foster care or who are returning to families from foster
28care. Program standards for these facilities shall be developed by
29the department, pursuant to Section 1530, in consultation with
30therapeutic day services and foster care providers.
31(4) “Foster family agency” means any organization engaged in
32the recruiting, certifying, and training of, and providing
33professional support to, foster parents, or in finding homes or other
34places for placement of children for temporary or permanent care
35who require that level of care as an alternative to a group home.
36Private foster family agencies shall be organized and operated on
37a nonprofit basis.
38(5) “Foster family home” means any residential facility
39providing 24-hour care for six or fewer foster children that is
40owned, leased, or rented and is the residence of the foster parent
P336 1or parents, including their family, in whose care the foster children
2have been placed. The placement may be by a public or private
3child placement agency or by a court order, or by voluntary
4placement by a parent, parents, or guardian. It also means a foster
5family home described in Section 1505.2.
6(6) “Small family home” means any residential facility, in the
7licensee’s family residence, that provides 24-hour care for six or
8fewer foster children who have mental disorders or developmental
9or physical disabilities and who require special care and supervision
10as a result of their disabilities. A small family home may accept
11children with special health care needs, pursuant to subdivision
12(a) of Section 17710 of the Welfare and Institutions Code. In
13addition to placing children with special health care needs, the
14department may approve placement of children without special
15health care needs, up to the licensed capacity.
16(7) “Social rehabilitation facility” means any residential facility
17that provides social rehabilitation services for no longer than 18
18months in a group setting to adults recovering from mental illness
19who temporarily need assistance, guidance, or counseling. Program
20components shall be subject to program
standards pursuant to
21Article 1 (commencing with Section 5670) of Chapter 2.5 of Part
222 of Division 5 of the Welfare and Institutions Code.
23(8) “Community treatment facility” means any residential
24facility that provides mental health treatment services to children
25in a group setting and that has the capacity to provide secure
26containment. Program componentsbegin delete shall beend deletebegin insert areend insert subject to program
27standards developed and enforced by the State Department of
28Health Care Services pursuant to Section 4094 of the Welfare and
29Institutions Code.
30Nothing in this section shall be construed to
end delete
31begin insertThis section does not end insertprohibit or discourage placement of persons
32who have mental or physical disabilities into any category of
33community care facility that meets the needs of the individual
34placed, if the placement is consistent with the licensing regulations
35of the department.
36(9) “Full-service adoption agency” means any licensed entity
37engaged in the business of providing adoption services, that does
38all of the following:
P337 1(A) Assumes care, custody, and control of a child through
2relinquishment of the child to the agency or involuntary termination
3of parental rights to the child.
4(B) Assesses the birth parents, prospective adoptive parents, or
5child.
6(C) Places children for adoption.
7(D) Supervises adoptive placements.
8Private full-service adoption agencies shall be organized and
9operated on a nonprofit basis. As a condition of licensure to provide
10intercountry adoption services, a full-service adoption agency shall
11be accredited and in good standing according to Part 96 of Title
1222 of the Code of Federal Regulations, or supervised by an
13accredited primary provider, or acting as an exempted provider,
14in compliance with Subpart F (commencing with Section 96.29)
15of Part 96 of Title 22 of the Code of Federal Regulations.
16(10) “Noncustodial adoption agency” means any licensed entity
17engaged in the business of providing adoption services, that does
18all of the following:
19(A) Assesses the prospective adoptive parents.
20(B) Cooperatively matches children freed for adoption, who are
21under the care, custody, and control of a licensed adoption agency,
22for adoption, with assessed and approved adoptive applicants.
23(C) Cooperatively supervises adoptive placements with a
24full-service adoptive agency, but does not disrupt a placement or
25remove a child from a placement.
26Private noncustodial adoption agencies shall be organized and
27operated on a nonprofit basis. As a condition of licensure to provide
28intercountry adoption services, a noncustodial adoption agency
29shall be accredited and in good standing according to Part 96 of
30Title 22 of the Code of Federal Regulations, or supervised by an
31accredited primary provider, or acting as an exempted provider,
32in compliance with Subpart F (commencing with Section
96.29)
33of Part 96 of Title 22 of the Code of Federal Regulations.
34(11) “Transitional shelter care facility” means any group care
35facility that provides for 24-hour nonmedical care of persons in
36need of personal services, supervision, or assistance essential for
37sustaining the activities of daily living or for the protection of the
38individual. Program components shall be subject to program
39standards developed by the State Department of Social Services
40pursuant to Section 1502.3.
P338 1(12) “Transitional housing placement provider” means an
2organization licensed by the department pursuant to Section
31559.110 and Section 16522.1 of the Welfare and Institutions Code
4to provide transitional housing to foster children at least 16 years
5of age and not more than 18 years of age, and nonminor
6dependents, as defined in subdivision (v) of Section 11400 of the
7Welfare and Institutions Code, to
promote their transition to
8adulthood. A transitional housing placement provider shall be
9privately operated and organized on a nonprofit basis.
10(13) “Group home” means a residential facility that provides
1124-hour care and supervision to children, delivered at least in part
12by staff employed by the licensee in a structured environment. The
13care and supervision provided by a group home shall be
14nonmedical, except as otherwise permitted by law.
15(14) “Runaway and homeless youth shelter” means a group
16home licensed by the department to operate a program pursuant
17to Section 1502.35 to provide voluntary, short-term, shelter and
18personal services to runaway youth or homeless youth, as defined
19in paragraph (2) of subdivision (a) of Section 1502.35.
20(15) “Enhanced behavioral supports home” means a facility
21certified by the
State Department of Developmental Services
22pursuant to Article 3.6 (commencing with Section 4684.80) of
23Chapter 6 of Division 4.5 of the Welfare and Institutions Code,
24and licensed by the State Department of Social Services as an adult
25residential facility or a group home that provides 24-hour
26nonmedical care to individuals with developmental disabilities
27who require enhanced behavioral supports, staffing, and
28supervision in a homelike setting. An enhanced behavioral supports
29home shall have a maximum capacity of four consumers, shall
30conform to Section 441.530(a)(1) of Title 42 of the Code of Federal
31Regulations, and shall be eligible for federal Medicaid home- and
32community-based services funding.
33(16) “Community crisis home” means a facility certified by the
34State Department of Developmental Services pursuant to Article
358 (commencing with Section 4698) of Chapter 6 of Division 4.5
36of the Welfare and Institutions Code, and licensed by the
State
37Department of Social Services pursuant to Article 9.7 (commencing
38with Section 1567.80), as an adult residential facility, providing
3924-hour nonmedical care to individuals with developmental
40disabilities receiving regional center service, in need of crisis
P339 1intervention services, and who would otherwise be at risk of
2admission to the acute crisis center at Fairview Developmental
3Center, Sonoma Developmental Center,begin delete an acute generalend deletebegin insert a general
4acute careend insert hospital, acute psychiatric hospital, an institution for
5mental disease, as described in Part 5 (commencing with Section
65900) of Division 5 of the Welfare and Institutions Code, or an
7out-of-state placement. A community crisis home shall have a
8maximum capacity of eight consumers, as defined in subdivision
9(a) of Section 1567.80, shall conform to Section
441.530(a)(1) of
10Title 42 of the Code of Federal Regulations, and shall be eligible
11for federal Medicaid home- and community-based services funding.
12(17) “Crisis nursery” means a facility licensed by the department
13to operate a program pursuant to Section 1516 to provide short-term
14care and supervision for children under six years of age who are
15voluntarily placed for temporary care by a parent or legal guardian
16due to a family crisis or stressful situation.
17(b) “Department” or “state department” means the State
18Department of Social Services.
19(c) “Director” means the Director of Social Services.
Section 1522 of the Health and Safety Code is
21amended to read:
The Legislature recognizes the need to generate timely
23and accurate positive fingerprint identification of applicants as a
24condition of issuing licenses, permits, or certificates of approval
25for persons to operate or provide direct care services in a
26community care facility, foster family home, or a certified family
27home of a licensed foster family agency. Therefore, the Legislature
28supports the use of the fingerprint live-scan technology, as
29identified in the long-range plan of the Department of Justice for
30fully automating the processing of fingerprints and other data by
31the year 1999, otherwise known as the California Crime
32Information Intelligence System (CAL-CII), to be used for
33applicant fingerprints. It is the intent of the Legislature in enacting
34this section to require the fingerprints of those individuals whose
35contact with community care
clients may pose a risk to the clients’
36health and safety. An individual shall be required to obtain either
37a criminal record clearance or a criminal record exemption from
38the State Department of Social Services before his or her initial
39presence in a community care facility or certified family home.
P340 1(a) (1) Before and, as applicable, subsequent to issuing a license
2or special permit to any person or persons to operate or manage a
3community care facility, the State Department of Social Services
4shall secure from an appropriate law enforcement agency a criminal
5record to determine whether the applicant or any other person
6specified in subdivision (b) has ever been convicted of a crime
7other than a minor traffic violation or arrested for any crime
8specified in Section 290 of the Penal Code, or for violating Section
9245, 273ab, or 273.5 of the Penal Code, subdivision (b) of Section
10273a of the Penal Code, or, prior to January
1, 1994, paragraph
11(2) of Section 273a of the Penal Code, or for any crime for which
12the department is prohibited from granting a criminal record
13exemption pursuant to subdivision (g).
14(2) The criminal history information shall include the full
15criminal record, if any, of those persons, and subsequent arrest
16information pursuant to Section 11105.2 of the Penal Code.
17(3) Except during the 2003-04 to the 2014-15 fiscal years,
18inclusive,begin delete neitherend delete the Department of Justicebegin delete norend deletebegin insert andend insert the State
19Department of Social Servicesbegin delete mayend deletebegin insert
shall notend insert charge a fee for the
20fingerprinting of an applicant for a license or special permit to
21operate a facility providing nonmedical board, room, and care for
22six orbegin delete lessend deletebegin insert fewerend insert children or for obtaining a criminal record of the
23applicant pursuant to this section.
24(4) The following shall apply to the criminal record information:
25(A) If the State Department of Social Services finds that the
26applicant, or any other person specified in subdivision (b), has
27been convicted of a crime other than a minor traffic violation, the
28application shall be denied, unless the director grants an exemption
29pursuant to subdivision (g).
30(B) If the State Department of Social Services finds that the
31applicant, or any other person specified in subdivision (b), is
32awaiting trial for a crime other than a minor traffic violation, the
33State Department of Social Services may cease processing the
34criminal record information until the conclusion of the trial.
35(C) Ifbegin delete noend delete criminal record information hasbegin insert notend insert been recorded,
36the Department of Justice shall provide the applicant and the State
37Department of Social Services with a statement of that fact.
38(D) If the State Department of Social Services finds after
39licensure that the licensee, or any other person specified in
40paragraph
(1) of subdivision (b), has been convicted of a crime
P341 1other than a minor traffic violation, the license may be revoked,
2unless the director grants an exemption pursuant to subdivision
3(g).
4(E) An applicant and any other person specified in subdivision
5(b) shall submit fingerprint images and related information to the
6Department of Justice for the purpose of searching the criminal
7records of the Federal Bureau of Investigation, in addition to the
8criminal records search required by this subdivision. If an applicant
9and all other persons described in subdivision (b) meet all of the
10conditions for licensure, except receipt of the Federal Bureau of
11Investigation’s criminal offender record information search
12response for the applicant or any of the persons described in
13subdivision (b), the department may issue a license if the applicant
14and each person described in subdivision (b) has signed and
15submitted a statement that he or she has never been
convicted of
16a crime in the United States, other than a traffic infraction, as
17prescribed in paragraph (1) of subdivision (a) of Section 42001 of
18the Vehicle Code. If, after licensure, or the issuance of a certificate
19of approval of a certified family home by a foster family agency,
20the department determines that the licensee or any other person
21specified in subdivision (b) has a criminal record, the department
22may revoke the license, or require a foster family agency to revoke
23the certificate of approval, pursuant to Section 1550. The
24department may also suspend the license or require a foster family
25agency to suspend the certificate of approval pending an
26administrative hearing pursuant to Section 1550.5.
27(F) The State Department of Social Services shall develop
28procedures to provide the individual’s state and federal criminal
29history information with the written notification of his or her
30exemption denial or revocation based on the criminal
record.
31Receipt of the criminal history information shall be optional on
32the part of the individual, as set forth in the agency’s procedures.
33The procedure shall protect the confidentiality and privacy of the
34individual’s record, and the criminal history information shall not
35be made available to the employer.
36(G) Notwithstanding any other law, the department is authorized
37to provide an individual with a copy of his or her state or federal
38level criminal offender record information search response as
39provided to that department by the Department of Justice if the
40department has denied a criminal background clearance based on
P342 1this information and the individual makes a written request to the
2department for a copy specifying an address to which it is to be
3sent. The state or federal level criminal offender record information
4search response shall not be modified or altered from its form or
5content as provided by the Department of Justice and
shall be
6provided to the address specified by the individual in his or her
7written request. The department shall retain a copy of the
8individual’s written request and the response and date provided.
9(b) (1) In addition to the applicant, this section shall be
10applicable to criminal record clearances and exemptions for the
11following persons:
12(A) Adults responsible for administration or direct supervision
13of staff.
14(B) Any person, other than a client, residing in the facility or
15certified family home.
16(C) begin deleteAny end deletebegin insertA end insertperson who provides client
assistance in dressing,
17grooming, bathing, or personal hygiene.begin delete Anyend deletebegin insert Aend insert nurse assistant or
18home health aide meeting the requirements of Section 1338.5 or
191736.6, respectively, who is not employed, retained, or contracted
20by the licensee, and who has been certified or recertified on or
21after July 1, 1998, shall be deemed to meet the criminal record
22clearance requirements of this section. A certified nurse assistant
23and certified home health aide who will be providing client
24assistance and who falls under this exemption shall provide one
25copy of his or her current certification, prior to providing care, to
26the community care facility. The facility shall maintain the copy
27of the certification on file as long as care is being provided by the
28certified nurse assistant or certified home health aide at the facility
29or certified
family home.begin delete Nothing in thisend deletebegin insert Thisend insert
paragraphbegin delete restrictsend delete
30begin insert does not restrictend insert the right of the department to exclude a certified
31nurse assistant or certified home health aide from a licensed
32community care facility or certified family home pursuant to
33Section 1558.
34(D) begin deleteAny end deletebegin insertA end insertstaff person, volunteer, or employee who has contact
35with the clients.
36(E) If the applicant is a firm, partnership, association, or
37corporation, the chief executive officer or other person serving in
38like capacity.
39(F) Additional officers of the governing body of the applicant,
40or other persons with a financial interest in the applicant, as
P343 1determined necessary by the department by regulation. The criteria
2used in the development of these regulations shall be based on the
3person’s capability to exercise substantial influence over the
4operation of the facility.
5(2) The following persons are exempt from the requirements
6applicable under paragraph (1):
7(A) A medical professional as defined in department regulations
8who holds a valid license or certification from the person’s
9governing California medical care regulatory entity and who is
10not employed, retained, or contracted by the licensee if all of the
11following apply:
12(i) The criminal record of the person has been
cleared as a
13condition of licensure or certification by the person’s governing
14California medical care regulatory entity.
15(ii) The person is providing time-limited specialized clinical
16care or services.
17(iii) The person is providing care or services within the person’s
18scope of practice.
19(iv) The person is not a community care facility licensee or an
20employee of the facility.
21(B) A third-party repair person or similar retained contractor if
22all of the following apply:
23(i) The person is hired for a defined, time-limited job.
24(ii) The person is not left alone with clients.
25(iii) When clients are present in the room in which the repair
26person or contractor is working, a staff person who has a criminal
27record clearance or exemption is also present.
28(C) Employees of a licensed home health agency and other
29members of licensed hospice interdisciplinary teams who have a
30contract with a client or resident of the facility and are in the
31facility at the request of that client or resident’s legal
32decisionmaker. The exemption does not apply to a person who is
33a community care facility licensee or an employee of the facility.
34(D) Clergy and other spiritual caregivers who are performing
35services in common areas of the community care facility or who
36are advising an individual client at the request of, or with the
37permission of, the client or legal decisionmaker, are exempt from
38fingerprint and criminal background check requirements imposed
39by community
care licensing. This exemption does not apply to a
P344 1person who is a community care licensee or employee of the
2facility.
3(E) Members of fraternal, service, or similar organizations who
4conduct group activities for clients if all of the following apply:
5(i) Members are not left alone with clients.
6(ii) Members do not transport clients off the facility premises.
7(iii) The same organization does not conduct group activities
8for clients more often than defined by the department’s regulations.
9(3) In addition to the exemptions in paragraph (2), the following
10persons in foster family homes, certified family homes, and small
11family homes are exempt from the requirements applicable under
12paragraph
(1):
13(A) Adult friends and family of the licensed or certified foster
14parent, who come into the home to visit for a length of time no
15longer than defined by the department in regulations, provided
16that the adult friends and family of the licensee or certifiedbegin insert fosterend insert
17 parent are not left alone with the foster children. However, the
18licensee or certifiedbegin insert fosterend insert parent, acting as a reasonable and
19prudent parent, as defined in paragraph (2) of subdivision (a) of
20Section 362.04 of the Welfare and Institutions Code, may allow
21his or her adult friends and family to provide short-term care to
22the foster child and act as an appropriate occasional short-term
23babysitter for the child.
24(B) Parents of a foster child’s friend when the foster child is
25visiting the friend’s home and the friend, licensed or certified foster
26parent, or both are also present. However, the licensee or certified
27begin insert
fosterend insert parent, acting as a reasonable and prudent parent, may allow
28the parent of the foster child’s friend to act as an appropriate
29short-term babysitter for the child without the friend being present.
30(C) Individuals who are engaged by any licensed or certified
31foster parent to provide short-term care to the child for periods not
32to exceed 24 hours. Caregivers shall use a reasonable and prudent
33parent standard in selecting appropriate individuals to act as
34appropriate occasional short-term babysitters.
35(4) In addition to the exemptions specified in paragraph (2), the
36following persons in adult day care and adult day support centers
37are exempt from the requirements applicable under paragraph (1):
38(A) Unless contraindicated by the client’s individualized
39program plan (IPP) or
needs and service plan, a spouse, significant
40other, relative, or close friend of a client, or an attendant or a
P345 1facilitator for a client with a developmental disability if the
2attendant or facilitator is not employed, retained, or contracted by
3the licensee. This exemption applies only if the person is visiting
4the client or providing direct care and supervision to the client.
5(B) A volunteer if all of the following applies:
6(i) The volunteer is supervised by the licensee or a facility
7employee with a criminal record clearance or exemption.
8(ii) The volunteer is never left alone with clients.
9(iii) The volunteer does not provide any client assistance with
10dressing, grooming, bathing, or personal hygiene other than
11washing of hands.
12(5) (A) In addition to the exemptions specified in paragraph
13(2), the following persons in adult residential and social
14rehabilitation facilities, unless contraindicated by the client’s
15individualized program plan (IPP) or needs and services plan, are
16exempt from the requirements applicable under paragraph (1): a
17spouse, significant other, relative, or close friend of a client, or an
18attendant or a facilitator for a client with a developmental disability
19if the attendant or facilitator is not employed, retained, or
20contracted by the licensee. This exemption applies only if the
21person is visiting the client or providing direct care and supervision
22to that client.
23(B) begin deleteNothing in this end deletebegin insertThis end insertsubdivisionbegin delete shallend deletebegin insert
does notend insert prevent a
24licensee from requiring a criminal record clearance of any
25individual exempt from the requirements of this section, provided
26that the individual has client contact.
27(6) Any person similar to those described in this subdivision,
28as defined by the department in regulations.
29(c) (1) Subsequent to initial licensure, a person specified in
30subdivision (b) who is not exempted from fingerprinting shall
31obtain either a criminal record clearance or an exemption from
32disqualification pursuant to subdivision (g) from the State
33Department of Social Services prior to employment, residence, or
34initial presence in the facility. A person specified in subdivision
35(b) who is not exempt from fingerprinting shall be fingerprinted
36and shall sign a declaration under penalty of perjury regarding any
37prior criminal
convictions. The licensee shall submit fingerprint
38images and related information to the Department of Justice and
39the Federal Bureau of Investigation, through the Department of
40Justice, for a state and federal level criminal offender record
P346 1information search, or comply with paragraph (1) of subdivision
2(h). These fingerprint images and related information shall be sent
3by electronic transmission in a manner approved by the State
4Department of Social Services and the Department of Justice for
5the purpose of obtaining a permanent set of fingerprints, and shall
6be submitted to the Department of Justice by the licensee. A
7licensee’s failure to prohibit the employment, residence, or initial
8presence of a person specified in subdivision (b) who is not exempt
9from fingerprinting and who has not received either a criminal
10record clearance or an exemption from disqualification pursuant
11to subdivision (g) or to comply with paragraph (1) of subdivision
12(h), as required in this section, shall result in the citation of
a
13deficiency and the immediate assessment of civil penalties in the
14amount of one hundred dollars ($100) per violation per day for a
15maximum of five days, unless the violation is a second or
16subsequent violation within a 12-month period in which case the
17civil penalties shall be in the amount of one hundred dollars ($100)
18per violation for a maximum of 30 days, and shall be grounds for
19disciplining the licensee pursuant to Section 1550. The department
20may assess civil penalties for continued violations as permitted by
21Section 1548. The fingerprint images and related information shall
22then be submitted to the Department of Justice for processing.
23Upon request of the licensee, who shall enclose a self-addressed
24stamped postcard for this purpose, the Department of Justice shall
25verify receipt of the fingerprints.
26(2) Within 14 calendar days of the receipt of the fingerprint
27images, the Department of Justice shall notify the State Department
28of
Social Services of the criminal record information, as provided
29for in subdivision (a). Ifbegin delete noend delete criminal record information hasbegin insert notend insert
30 been recorded, the Department of Justice shall provide the licensee
31and the State Department of Social Services with a statement of
32that fact within 14 calendar days of receipt of the fingerprint
33images. Documentation of the individual’s clearance or exemption
34from disqualification shall be maintained by the licensee and be
35available for inspection. If new fingerprint images are required for
36processing, the Department of Justice shall, within 14 calendar
37days from the date of receipt of the fingerprints, notify the licensee
38that the fingerprints were illegible, the Department of Justice shall
39notify the State Department of Social Services, as required by
40Section 1522.04, and shall also notify
the licensee by mail, within
P347 114 days of electronic transmission of the fingerprints to the
2Department of Justice, if the person has no criminal history
3recorded. A violation of the regulations adopted pursuant to Section
41522.04 shall result in the citation of a deficiency and an immediate
5assessment of civil penalties in the amount of one hundred dollars
6($100) per violation per day for a maximum of five days, unless
7the violation is a second or subsequent violation within a 12-month
8period in which case the civil penalties shall be in the amount of
9one hundred dollars ($100) per violation for a maximum of 30
10days, and shall be grounds for disciplining the licensee pursuant
11to Section 1550. The department may assess civil penalties for
12continued violations as permitted by Section 1548.
13(3) Except for persons specified in subdivision (b) who are
14exempt from fingerprinting, the licensee shall endeavor to ascertain
15the previous employment history
of persons required to be
16fingerprinted. If it is determined by the State Department of Social
17Services, on the basis of the fingerprint images and related
18information submitted to the Department of Justice, that subsequent
19to obtaining a criminal record clearance or exemption from
20disqualification pursuant to subdivision (g), the person has been
21convicted of, or is awaiting trial for, a sex offense against a minor,
22or has been convicted for an offense specified in Section 243.4,
23273a, 273ab, 273d, 273g, or 368 of the Penal Code, or a felony,
24the State Department of Social Services shall notify the licensee
25to act immediately to terminate the person’s employment, remove
26the person from the community care facility, or bar the person
27from entering the community care facility. The State Department
28of Social Services may subsequently grant an exemption from
29disqualification pursuant to subdivision (g). If the conviction or
30arrest was for another crime, except a minor traffic violation, the
31licensee shall, upon
notification by the State Department of Social
32Services, act immediately to either (A) terminate the person’s
33employment, remove the person from the community care facility,
34or bar the person from entering the community care facility; or
35(B) seek an exemption from disqualification pursuant to subdivision
36(g). The State Department of Social Services shall determine if
37the person shall be allowed to remain in the facility until a decision
38on the exemption from disqualification is rendered. A licensee’s
39failure to comply with the department’s prohibition of employment,
40contact with clients, or presence in the facility as required by this
P348 1paragraph shall result in a citation of deficiency and an immediate
2assessment of civil penalties in the amount of one hundred dollars
3($100) per violation per day and shall be grounds for disciplining
4the licensee pursuant to Section 1550.
5(4) The department may issue an exemption from
6disqualification on its own
motion pursuant to subdivision (g) if
7the person’s criminal history indicates that the person is of good
8character based on the age, seriousness, and frequency of the
9conviction or convictions. The department, in consultation with
10interested parties, shall develop regulations to establish the criteria
11to grant an exemption from disqualification pursuant to this
12paragraph.
13(5) Concurrently with notifying the licensee pursuant to
14paragraph (3), the department shall notify the affected individual
15of his or her right to seek an exemption from disqualification
16pursuant to subdivision (g). The individual may seek an exemption
17from disqualification only if the licensee terminates the person’s
18employment or removes the person from the facility after receiving
19notice from the department pursuant to paragraph (3).
20(d) (1) Before and, as applicable, subsequent to
issuing a license
21or certificate of approval to any person or persons to operate a
22foster family home or certified family home as described in Section
231506, the State Department of Social Services or other approving
24authority shall secure California and Federal Bureau of
25Investigation criminal history information to determine whether
26the applicant or any person specified in subdivision (b) who is not
27exempt from fingerprinting has ever been convicted of a crime
28other than a minor traffic violation or arrested for any crime
29specified in subdivision (c) of Section 290 of the Penal Code, for
30violating Section 245, 273ab, or 273.5, subdivision (b) of Section
31273a, or, prior to January 1, 1994, paragraph (2) of Section 273a,
32of the Penal Code, or for any crime for which the department is
33prohibited from granting a criminal record exemption pursuant to
34subdivision (g). The State Department of Social Services or other
35approving authority shall not issue a license or certificate of
36approval to any foster family home
or certified family home
37applicant who has not obtained both a California and Federal
38Bureau of Investigation criminal record clearance or exemption
39 from disqualification pursuant to subdivision (g).
P349 1(2) The criminal history information shall include the full
2criminal record, if any, of those persons.
3(3) Neither the Department of Justice nor the State Department
4of Social Services may charge a fee for the fingerprinting of an
5applicant for a license, special permit, or certificate of approval
6described in this subdivision. The record, if any, shall be taken
7into consideration when evaluating a prospective applicant.
8(4) The following shall apply to the criminal record information:
9(A) If the applicant or other persons specified in subdivision
10(b) who
are not exempt from fingerprinting have convictions that
11would make the applicant’s home unfit as a foster family home or
12a certified family home, the license, special permit, certificate of
13approval, or presence shall be denied.
14(B) If the State Department of Social Services finds that the
15applicant, or any person specified in subdivision (b) who is not
16exempt from fingerprinting is awaiting trial for a crime other than
17a minor traffic violation, the State Department of Social Services
18or other approving authority may cease processing the criminal
19record information until the conclusion of the trial.
20(C) For purposes of this subdivision, a criminal record clearance
21provided under Section 8712 of the Family Code may be used by
22the department or other approving agency.
23(D) To the same extent required for federal
funding, an applicant
24for a foster family home license or for certification as a family
25home, and any other person specified in subdivision (b) who is
26not exempt from fingerprinting, shall submit a set of fingerprint
27images and related information to the Department of Justice and
28the Federal Bureau of Investigation, through the Department of
29Justice, for a state and federal level criminal offender record
30information search, in addition to the criminal records search
31required by subdivision (a).
32(5) begin deleteAny end deletebegin insertA end insertperson specified in this subdivision shall, as a part
33of the application, be fingerprinted and sign a declaration under
34penalty of perjury regarding any prior criminal convictions or
35arrests for any crime against a child, spousal or cohabitant abuse,
36or
any crime for which the department cannot grant an exemption
37if the person was convicted and shall submit these fingerprints to
38the licensing agency or other approving authority.
39(6) (A) Subsequent to initial licensure or certification, a person
40specified in subdivision (b) who is not exempt from fingerprinting
P350 1shall obtain both a California and Federal Bureau of Investigation
2criminal record clearance, or an exemption from disqualification
3pursuant to subdivision (g), prior to employment, residence, or
4initial presence in the foster family or certified family home. A
5foster family home licensee or foster family agency shall submit
6fingerprint images and related information of persons specified in
7subdivision (b) who are not exempt from fingerprinting to the
8Department of Justice and the Federal Bureau of Investigation,
9through the Department of Justice, for a state and federal level
10criminal offender record information
search, or to comply with
11paragraph (1) of subdivision (h). A foster family home licensee’s
12or a foster family agency’s failure to either prohibit the
13employment, residence, or initial presence of a person specified
14in subdivision (b) who is not exempt from fingerprinting and who
15has not received either a criminal record clearance or an exemption
16from disqualification pursuant to subdivision (g), or comply with
17paragraph (1) of subdivision (h), as required in this section, shall
18result in a citation of a deficiency, and the immediate civil penalties
19of one hundred dollars ($100) per violation per day for a maximum
20of five days, unless the violation is a second or subsequent violation
21within a 12-month period in which case the civil penalties shall
22be in the amount of one hundred dollars ($100) per violation for
23a maximum of 30 days, and shall be grounds for disciplining the
24licensee pursuant to Section 1550. A violation of the regulation
25adopted pursuant to Section 1522.04 shall result in the citation of
26a
deficiency and an immediate assessment of civil penalties in the
27amount of one hundred dollars ($100) per violation per day for a
28maximum of five days, unless the violation is a second or
29subsequent violation within a 12-month period in which case the
30civil penalties shall be in the amount of one hundred dollars ($100)
31per violation for a maximum of 30 days, and shall be grounds for
32disciplining the foster family home licensee or the foster family
33agency pursuant to Section 1550. The State Department of Social
34Services may assess penalties for continued violations, as permitted
35by Section 1548. The fingerprint images shall then be submitted
36to the Department of Justice for processing.
37(B) Upon request of the licensee, who shall enclose a
38self-addressed envelope for this purpose, the Department of Justice
39shall verify receipt of the fingerprints. Within five working days
40of the receipt of the criminal record or information regarding
P351 1criminal
convictions from the Department of Justice, the
2department shall notify the applicant of any criminal arrests or
3convictions. If no arrests or convictions are recorded, the
4Department of Justice shall provide the foster family home licensee
5or the foster family agency with a statement of that fact concurrent
6with providing the information to the State Department of Social
7Services.
8(7) If the State Department of Social Services or other approving
9authority finds that the applicant, or any other person specified in
10subdivision (b) who is not exempt from fingerprinting, has been
11convicted of a crime other than a minor traffic violation, the
12application or presence shall be denied, unless the director grants
13an exemption from disqualification pursuant to subdivision (g).
14(8) If the State Department of Social Services or other approving
15authority finds after licensure or the granting
of the certificate of
16approval that the licensee, certified foster parent, or any other
17person specified in subdivision (b) who is not exempt from
18fingerprinting, has been convicted of a crime other than a minor
19traffic violation, the license or certificate of approval may be
20revoked by the department or the foster family agency, whichever
21is applicable, unless the director grants an exemption from
22disqualification pursuant to subdivision (g). A licensee’s failure
23to comply with the department’s prohibition of employment,
24contact with clients, or presence in the facility as required by
25paragraph (3) of subdivision (c) shall be grounds for disciplining
26the licensee pursuant to Section 1550.
27(e) (1) The State Department of Social Services shall not use
28a record of arrest to deny, revoke, or terminate any application,
29license, employment, or residence unless the department
30investigates the incident and secures evidence,
whether or not
31related to the incident of arrest, that is admissible in an
32administrative hearing to establish conduct by the person that may
33pose a risk to the health and safety of any person who is or may
34become a client.
35(2) The department shall not issue a criminal record clearance
36to a person who has been arrested for any crime specified in Section
37290 of the Penal Code, or for violating Section 245, 273ab, or
38273.5, or subdivision (b) of Section 273a, of the Penal Code, or,
39prior to January 1, 1994, paragraph (2) of Section 273a of the Penal
40Code, or for any crime for which the department is prohibited from
P352 1granting a criminal record exemption pursuant to subdivision (g),
2prior to the department’s completion of an investigation pursuant
3to paragraph (1).
4(3) The State Department of Social Services is authorized to
5obtain any arrest or conviction records or reports from any
law
6enforcement agency as necessary to the performance of its duties
7to inspect, license, and investigate community care facilities and
8individuals associated with a community care facility.
9(f) (1) For purposes of this section or any other provision of
10this chapter, a conviction means a plea or verdict of guilty or a
11conviction following a plea of nolo contendere. Any action that
12the State Department of Social Services is permitted to take
13following the establishment of a conviction may be taken when
14the time for appeal has elapsed, when the judgment of conviction
15has been affirmed on appeal, or when an order granting probation
16is made suspending the imposition of sentence, notwithstanding
17a subsequent order pursuant to Sections 1203.4 and 1203.4a of the
18Penal Code permitting the person to withdraw his or her plea of
19guilty and to enter a plea of not guilty, or setting aside the verdict
20of guilty, or dismissing the
accusation, information, or indictment.
21For purposes of this section or any other provision of this chapter,
22the record of a conviction, or a copy thereof certified by the clerk
23of the court or by a judge of the court in which the conviction
24occurred, shall be conclusive evidence of the conviction. For
25purposes of this section or any other provision of this chapter, the
26arrest disposition report certified by the Department of Justice, or
27documents admissible in a criminal action pursuant to Section
28969b of the Penal Code, shall be prima facie evidence of the
29conviction, notwithstanding any other law prohibiting the
30admission of these documents in a civil or administrative action.
31(2) For purposes of this section or any other provision of this
32chapter, the department shall consider criminal convictions from
33another state or federal court as if the criminal offense was
34committed in this state.
35(g) (1) After review of the record, the director may grant an
36exemption from disqualification for a license or special permit as
37specified in paragraph (4) of subdivision (a), or for a license,
38special permit, or certificate of approval as specified in paragraphs
39(4), (7), and (8) of subdivision (d), or for employment, residence,
40or presence in a community care facility as specified in paragraphs
P353 1(3), (4), and (5) of subdivision (c), if the director has substantial
2and convincing evidence to support a reasonable belief that the
3applicant and the person convicted of the crime, if other than the
4applicant, are of good character as to justify issuance of the license
5or special permit or granting an exemption for purposes of
6subdivision (c). Except as otherwise provided in this subdivision,
7an exemption shall not be granted pursuant to this subdivision if
8the conviction was for any of the following offenses:
9(A) (i) An offense specified in Section 220, 243.4, or 264.1,
10subdivision (a) of Section 273a, or, prior to January 1, 1994,
11paragraph (1) of Section 273a, Section 273ab, 273d, 288, or 289,
12subdivision (c) of Section 290, or Section 368, of the Penal Code,
13or was a conviction of another crime against an individual specified
14in subdivision (c) of Section 667.5 of the Penal Code.
15(ii) Notwithstanding clause (i), the director may grant an
16exemption regarding the conviction for an offense described in
17paragraph (1), (2), (7), or (8) of subdivision (c) of Section 667.5
18of the Penal Code, if the employee or prospective employee has
19been rehabilitated as provided in Section 4852.03 of the Penal
20Code, has maintained the conduct required in Section 4852.05 of
21the Penal Code for at least 10 years, and has the recommendation
22of the district attorney representing the employee’s county of
23residence, or if the employee or
prospective employee has received
24a certificate of rehabilitation pursuant to Chapter 3.5 (commencing
25with Section 4852.01) of Title 6 of Part 3 of the Penal Code. This
26clausebegin delete shallend deletebegin insert doesend insert not apply to foster care providers, including
27relative caregivers, nonrelated extended family members, or any
28other person specified in subdivision (b), in those homes where
29the individual has been convicted of an offense described in
30paragraph (1) of subdivision (c) of Section 667.5 of the Penal
31Code.
32(B) A felony offense specified in Section 729 of the Business
33and Professions Code or Section 206 or 215, subdivision (a) of
34Section 347, subdivision (b) of Section 417, or subdivision (a) of
35Section 451 of the Penal Code.
36(C) begin deleteUnder no circumstances shall an end deletebegin insertAn end insertexemptionbegin insert shall notend insert be
37granted pursuant to this subdivision to any foster care provider
38applicant if that applicant, or any other person specified in
39subdivision (b) in those homes, has a felony conviction for either
40of the following offenses:
P354 1(i) A felony conviction for child abuse or neglect, spousal abuse,
2crimes against a child, including child pornography, or for a crime
3involving violence, including rape, sexual assault, or homicide,
4but not including other physical assault and battery. For purposes
5of this subparagraph, a crime involving violence means a violent
6crime specified in clause (i)
of subparagraph (A), or subparagraph
7(B).
8(ii) A felony conviction, within the last five years, for physical
9assault, battery, or a drug- or alcohol-related offense.
10(iii) This subparagraphbegin delete shallend deletebegin insert doesend insert not apply to licenses or
11approvals wherein a caregiver was granted an exemption to a
12criminal conviction described in clause (i) or (ii) prior to the
13enactment of this subparagraph.
14(iv) This subparagraph shall remain operative only to the extent
15that compliance with its provisions is required by federal law as
16a condition for receiving funding under Title IV-E of the federal
17Social Security Act (42 U.S.C. Sec. 670 et seq.).
18(2) The department shall not prohibit a person from being
19employed or having contact with clients in a facility on the basis
20of a denied criminal record exemption request or arrest information
21unless the department complies with the requirements of Section
221558.
23(h) (1) For purposes of compliance with this section, the
24department may permit an individual to transfer a current criminal
25record clearance, as defined in subdivision (a), from one facility
26to another, as long as the criminal record clearance has been
27processed through a state licensing district office, and is being
28transferred to another facility licensed by a state licensing district
29office. The request shall be in writing to the State Department of
30Social Services, and shall include a copy of the person’s driver’s
31license or valid identification card issued by the Department of
32Motor Vehicles, or a
valid photo identification issued by another
33state or the United States government if the person is not a
34California resident. Upon request of the licensee, who shall enclose
35a self-addressed envelope for this purpose, the State Department
36of Social Services shall verify whether the individual has a
37clearance that can be transferred.
38(2) The State Department of Social Services shall hold criminal
39record clearances in its active files for a minimum of three years
P355 1after an employee is no longer employed at a licensed facility in
2order for the criminal record clearance to be transferred.
3(3) The followingbegin delete shall applyend deletebegin insert appliesend insert to a criminal record
4clearance or exemption from the department or a
county office
5with department-delegated licensing authority:
6(A) A county office with department-delegated licensing
7authority may accept a clearance or exemption from the
8department.
9(B) The department may accept a clearance or exemption from
10any county office with department-delegated licensing authority.
11(C) A county office with department-delegated licensing
12authority may accept a clearance or exemption from any other
13county office with department-delegated licensing authority.
14(4) With respect to notifications issued by the Department of
15Justice pursuant to Section 11105.2 of the Penal Code concerning
16an individual whose criminal record clearance was originally
17processed by the department or a county office with
18department-delegated licensing
authority, all of the followingbegin delete shall begin insert
applies:end insert
19apply:end delete
20(A) The Department of Justice shall process a request from the
21department or a county office with department-delegated licensing
22authority to receive the notice only if all of the following conditions
23are met:
24(i) The request shall be submitted to the Department of Justice
25by the agency to be substituted to receive the notification.
26(ii) The request shall be for the same applicant type as the type
27for which the original clearance was obtained.
28(iii) The request shall contain all prescribed data elements and
29format protocols pursuant to a written agreement between the
30department and the Department of Justice.
31(B) (i) On
or before January 7, 2005, the department shall notify
32the Department of Justice of all county offices that have
33department-delegated licensing authority.
34(ii) The department shall notify the Department of Justice within
3515 calendar days of the date on which a new county office receives
36department-delegated licensing authority or a county’s delegated
37licensing authority is rescinded.
38(C) The Department of Justice shall charge the department, a
39county office with department-delegated licensing authority, or a
40county child welfare agency with criminal record clearance and
P356 1exemption authority, a fee for each time a request to substitute the
2recipient agency is received for purposes of this paragraph. This
3fee shall not exceed the cost of providing the service.
4(5) (A) A county child welfare agency
with authority to secure
5clearances pursuant to Section 16504.5 of the Welfare and
6Institutions Code and to grant exemptions pursuant to Section
7361.4 of the Welfare and Institutions Code may accept a clearance
8or exemption from another county with criminal record and
9exemption authority pursuant to these sections.
10(B) With respect to notifications issued by the Department of
11Justice pursuant to Section 11105.2 of the Penal Code concerning
12an individual whose criminal record clearance was originally
13processed by a county child welfare agency with criminal record
14clearance and exemption authority, the Department of Justice shall
15process a request from a county child welfare agency with criminal
16record and exemption authority to receive the notice only if all of
17the following conditions are met:
18(i) The request shall be submitted to the Department of Justice
19by the agency to be
substituted to receive the notification.
20(ii) The request shall be for the same applicant type as the type
21for which the original clearance was obtained.
22(iii) The request shall contain all prescribed data elements and
23format protocols pursuant to a written agreement between the State
24Department of Social Services and the Department of Justice.
25(i) The full criminal record obtained for purposes of this section
26may be used by the department or by a licensed adoption agency
27as a clearance required for adoption purposes.
28(j) If a licensee or facility is required by law to deny employment
29or to terminate employment of any employee based on written
30notification from the state department that the employee has a prior
31criminal conviction or is determined
unsuitable for employment
32under Section 1558, the licensee or facility shall not incur civil
33liability or unemployment insurance liability as a result of that
34denial or termination.
35(k) The State Department of Social Services may charge a fee
36for the costs of processing electronic fingerprint images and related
37information.
38(l) Amendments to this section made in the 1999 portion of the
391999-2000 Regular Session shall be implemented commencing
4060 days after the effective date of the act amending this section in
P357 1the 1999 portion of the 1999-2000 Regular Session, except that
2those provisions for the submission of fingerprints for searching
3the records of the Federal Bureau of Investigation shall be
4implemented 90 days after the effective date of that act.
The heading of Article 2.6 (commencing with
6Section 1528) of Chapter 3 of Division 2 of the Health and Safety
7Code is repealed.
8
Section 1531.2 of the Health and Safety Code, as
12added by Section 2 of Chapter 993 of the Statutes of 1989, is
13amended and renumbered to read:
A prospective applicant for licensure shall be notified
16at the time of the initial request for information regarding
17application for licensure that, prior to obtaining licensure, the
18facility shall secure and maintain a fire clearance approval from
19the local fire enforcing agencybegin delete, as defined in Section 13244,end delete or
20the State Fire Marshal, whichever has primary fire protection
21jurisdiction. The prospective applicant shall be notified of the
22provisions of Section 13235, relating to the fire safety clearance
23application. The prospective
applicant for licensure shall be notified
24that the fire clearance shall be in accordance with state and local
25fire safety regulations.
Section 1534 of the Health and Safety Code is
27amended to read:
(a) (1) (A) Except for foster family homes, every
29licensed community care facilitybegin delete shall beend deletebegin insert isend insert subject to unannounced
30inspections by the department.
31(B) Foster family homes shall be subject to announced
32inspections by the department, except that a foster family home
33shall be subject to unannounced inspections in response to a
34complaint, a plan of correction, or under any of the circumstances
35set forth in subparagraph (B) of paragraph (2).
36(2) (A) The
department may inspect these facilities as often as
37necessary to ensure the quality of care provided.
38(B) The department shall conduct an annual unannounced
39inspection of a facility under any of the following circumstances:
40(i) When a license is on probation.
P358 1(ii) When the terms of agreement in a facility compliance plan
2require an annual inspection.
3(iii) When an accusation against a licensee is pending.
4(iv) When a facility requires an annual inspection as a condition
5of receiving federal financial participation.
6(v) In order to verify that a person who has been ordered out of
7a facility by the department is no longer at
the facility.
8(C) (i) The department shall conduct annual unannounced
9inspections of no less than 20 percent of facilities, except for foster
10family homes, not subject to an inspection under subparagraph
11(B).
12(ii) The department shall conduct annual announced inspections
13of no less than 20 percent of foster family homes not subject to an
14inspection under subparagraph (B).
15(iii) These inspections shall be conducted based on a random
16sampling methodology developed by the department.
17(iv) If the total citations issued by the department to facilities
18exceed the previous year’s total by 10 percent, the following year
19the department shall increase the random sample by an additional
2010 percent of the facilities not subject to an
inspection under
21subparagraph (B). The department may request additional resources
22to increase the random sample by 10 percent.
23(v) The department shall not inspect a licensed community care
24facility less often than once every five years.
25(3) In order to facilitate direct contact with group home clients,
26the department may interview children who are clients of group
27homes at any public agency or private agency at which the client
28may be found, including, but not limited to, a juvenile hall,
29recreation or vocational program, or a public or nonpublic school.
30The department shall respect the rights of the child while
31conducting the interview, including informing the child that he or
32she has the right not to be interviewed and the right to have another
33adult present during the interview.
34(4) The department shall notify
the community care facility in
35writing of all deficiencies in its compliance with the provisions of
36this chapter and the rules and regulations adopted pursuant to this
37chapter, and shall set a reasonable length of time for compliance
38by the facility.
39(5) Reports on the results of each inspection, evaluation, or
40consultation shall be kept on file in the department, and all
P359 1inspection reports, consultation reports, lists of deficiencies, and
2plans of correction shall be open to public inspection.
3(b) (1) This section does not limit the authority of the
4department to inspect or evaluate a licensed foster family agency,
5a certified family home, or any aspect of a program in which a
6licensed community care facility is certifying compliance with
7licensing requirements.
8(2) (A) A
foster family agency shall conduct an announced
9inspection of a certified family home during the annual
10recertification described in Section 1506 in order to ensure that
11the certified family home meets all applicable licensing standards.
12A foster family agency may inspect a certified family home as
13often as necessary to ensure the quality of care provided.
14(B) In addition to the inspections required pursuant to
15subparagraph (A), a foster family agency shall conduct an
16unannounced inspection of a certified family home under any of
17the following circumstances:
18(i) When a certified family home is on probation.
19(ii) When the terms of the agreement in a facility compliance
20plan require an annual inspection.
21(iii) When an accusation against a certified family
home is
22pending.
23(iv) When a certified family home requires an annual inspection
24as a condition of receiving federal financial participation.
25(v) In order to verify that a person who has been ordered out of
26a certified family home by the department is no longer at the home.
27(3) Upon a finding of noncompliance by the department, the
28department may require a foster family agency to deny or revoke
29the certificate of approval of a certified family home, or take other
30action the department may deem necessary for the protection of a
31child placed with the certified family home. The certifiedbegin insert fosterend insert
32 parent or prospective foster parent shall be afforded the due process
33provided pursuant to this chapter.
34(4) If the department requires a foster family agency to deny or
35revoke the certificate of approval, the department shall serve an
36order of denial or revocation upon the certified or prospective
37foster parent and foster family agency that shall notify the certified
38or prospective foster parent of the basis of the department’s action
39and of the certified or prospective foster parent’s right to a hearing.
P360 1(5) Within 15 days after the department serves an order of denial
2or revocation, the certified or prospective foster parent may file a
3written appeal of the department’s decision with the department.
4The department’s action shall be final if the certified or prospective
5foster parent does not file a written appeal within 15 days after the
6department serves the denial or revocation order.
7(6) The department’s order of the
denial or revocation of the
8certificate of approval shall remain in effect until the hearing is
9completed and the director has made a final determination on the
10merits.
11(7) A certified or prospective foster parent who files a written
12appeal of the department’s order with the department pursuant to
13this section shall, as part of the written request, provide his or her
14current mailing address. The certified or prospective foster parent
15shall subsequently notify the department in writing of any change
16in mailing address, until the hearing process has been completed
17or terminated.
18(8) Hearings held pursuant to this section shall be conducted in
19accordance with Chapter 5 (commencing with Section 11500) of
20Part 1 of Division 3 of Title 2 of the Government Code. In all
21proceedings conducted in accordance with this section the standard
22of proof shall be by a preponderance of the
evidence.
23(9) The department may institute or continue a disciplinary
24proceeding against a certified or prospective foster parent upon
25any ground provided by this section or Section 1550, enter an order
26denying or revoking the certificate of approval, or otherwise take
27disciplinary action against the certified or prospective foster parent,
28notwithstanding any resignation, withdrawal of application,
29surrender of the certificate of approval, or denial or revocation of
30the certificate of approval by the foster family agency.
31(10) A foster family agency’s failure to comply with the
32department’s order to deny or revoke the certificate of approval
33by placing or retaining children in care shall be grounds for
34disciplining the licensee pursuant to Section 1550.
Section 1546.1 of the Health and Safety Code is
36amended to read:
(a) (1) It is the intent of the Legislature in enacting
38this section to authorize the department to take quick, effective
39action to protect the health and safety of clients of community care
40facilities and to minimize the effects of transfer trauma that
P361 1accompany the abrupt transfer of clients by appointing a temporary
2manager to assume the operation of a facility that is found to be
3in a condition in which continued operation by the licensee or his
4or her representative presents a substantial probability of imminent
5danger of serious physical harm or death to the clients.
6(2) A temporary manager appointed pursuant to this section
7shall assume the operation of the facility in order to bring it into
8compliance with the law, facilitate a
transfer of ownership to a
9new licensee, or ensure the orderly transfer of clients should the
10facility be required to close. Upon a final decision and order of
11revocation of the license or a forfeiture by operation of law, the
12department shall immediately issue a provisional license to the
13appointed temporary manager. Notwithstanding the applicable
14sections of this code governing the revocation of a provisional
15license, the provisional license issued to a temporary manager shall
16automatically expire upon the termination of the temporary
17manager. The temporary manager shall possess the provisional
18license solely for purposes of carrying out the responsibilities
19authorized by this section and the duties set forth in the written
20agreement between the department and the temporary manager.
21The temporary managerbegin delete shallend deletebegin insert does notend insert
havebegin delete noend deletebegin insert theend insert right to appeal
22the expiration of the provisional license.
23(b) For purposes of this section, “temporary manager” means
24the person, corporation, or other entity appointed temporarily by
25the department as a substitute facility licensee or administrator
26with authority to hire, terminate, reassign staff, obligate facility
27funds, alter facility procedures, and manage the facility to correct
28deficiencies identified in the facility’s operation. The temporary
29managerbegin delete shall haveend deletebegin insert hasend insert the final authority to direct the care and
30supervision activities of
any person associated with the facility,
31including superseding the authority of the licensee and the
32administrator.
33(c) The director may appoint a temporary manager when it is
34determined that it is necessary to temporarily suspend any license
35of a community care facility pursuant to Section 1550.5 and any
36of the following circumstances exist:
37(1) The immediate relocation of the clients is not feasible based
38on transfer trauma, lack of alternate placements, or other emergency
39considerations for the health and safety of the clients.
P362 1(2) The licensee is unwilling or unable to comply with the
2requirements of Section 1556 for the safe and orderly relocation
3of clients when ordered to do so by the department.
4(d) (1) Upon appointment,
the temporary manager shall
5complete its application for a license to operate a community care
6facility and take all necessary steps and make best efforts to
7eliminate any substantial threat to the health and safety to clients
8or complete the transfer of clients to alternative placements
9pursuant to Section 1556. For purposes of a provisional license
10issued to a temporary manager, the licensee’s existing fire safety
11clearance shall serve as the fire safety clearance for the temporary
12manager’s provisional license.
13(2) A person shall not impede the operation of a temporary
14manager. The temporary manager’s access to, or possession of,
15the property shall not be interfered with during the term of the
16temporary manager appointment. There shall be an automatic stay
17for a 60-day period subsequent to the appointment of a temporary
18manager of any action that would interfere with the functioning
19of the facility, including, but not limited to, termination
of utility
20services, attachments or setoffs of client trust funds, and
21repossession of equipment in the facility.
22(e) (1) The appointment of a temporary manager shall be
23immediately effective and shall continue for a period not to exceed
2460 days unless otherwise extended in accordance with paragraph
25(2) of subdivision (h) at the discretion of the department or
26otherwise terminated earlier by any of the following events:
27(A) The temporary manager notifies the department, and the
28department verifies, that the facility meets state and, if applicable,
29federal standards for operation, and will be able to continue to
30maintain compliance with those standards after the termination of
31the appointment of the temporary manager.
32(B) The department approves a new temporary manager.
33(C) A new operator is licensed.
34(D) The department closes the facility.
35(E) A hearing or court order ends the temporary manager
36appointment, including the appointment of a receiver under Section
371546.2.
38(F) The appointment is terminated by the department or the
39temporary manager.
P363 1(2) The appointment of a temporary manager shall authorize
2the temporary manager to act pursuant to this section. The
3appointment shall be made pursuant to a written agreement between
4the temporary manager and the department that outlines the
5circumstances under which the temporary manager may expend
6funds. The department shall provide the licensee and administrator
7with a copy of the accusation to appoint a
temporary manager at
8the time of appointment. The accusation shall notify the licensee
9of the licensee’s right to petition the Office of Administrative
10Hearings for a hearing to contest the appointment of the temporary
11manager as described in subdivision (f) and shall provide the
12licensee with a form and appropriate information for the licensee’s
13use in requesting a hearing.
14(3) The director may rescind the appointment of a temporary
15manager and appoint a new temporary manager at any time that
16the director determines the temporary manager is not adhering to
17the conditions of the appointment.
18(f) (1) The licensee of a community care facility may contest
19the appointment of the temporary manager by filing a petition for
20an order to terminate the appointment of the temporary manager
21with the Office of Administrative Hearings within 15 days from
22the date of
mailing of the accusation to appoint a temporary
23manager under subdivision (e). On the same daybegin delete asend delete the petition is
24filed with the Office of Administrative Hearings, the licensee shall
25serve a copy of the petition to the office of the director.
26(2) Upon receipt of a petition under paragraph (1), the Office
27of Administrative Hearings shall set a hearing date and time within
2810 business days of the receipt of the petition. The office shall
29promptly notify the licensee and the department of the date, time,
30and place of the hearing. The office shall assign the case to an
31administrative law judge. At the hearing, relevant evidence may
32be presented pursuant to Section 11513 of the Government Code.
33The administrative law judge shall issue a written decision on the
34petition within 10 business days of the conclusion of the hearing.
35The 10-day time period for holding the
hearing and for rendering
36a decision may be extended by the written agreement of the parties.
37(3) The administrative law judge shall uphold the appointment
38of the temporary manager if the department proves, by a
39preponderance of the evidence, that the circumstances specified
40in subdivision (c) applied to the facility at the time of the
P364 1appointment. The administrative law judge shall order the
2termination of the temporary manager if the burden of proof is not
3satisfied.
4(4) The decision of the administrative law judge is subject to
5judicial review as provided in Section 1094.5 of the Code of Civil
6Procedure by the superior court of the county where the facility is
7located. This review may be requested by the licensee of the facility
8or the department by filing a petition seeking relief from the order.
9The petition may also request the issuance of temporary injunctive
10relief pending
the decision on the petition. The superior court shall
11hold a hearing within 10 business days of the filing of the petition
12and shall issue a decision on the petition within 10 days of the
13hearing. The department may be represented by legal counsel
14within the department for purposes of court proceedings authorized
15under this section.
16(g) If the licensee of the community care facility does not protest
17the appointment or does not prevail at either the administrative
18hearing under paragraph (2) of subdivision (f) or the superior court
19hearing under paragraph (4) of subdivision (f), the temporary
20manager shall continue in accordance with subdivision (e).
21(h) (1) If the licensee of the community care facility petitions
22the Office of Administrative Hearings pursuant to subdivision (f),
23the appointment of the temporary manager by the director pursuant
24to this
section shall continue until it is terminated by the
25administrative law judge or by the superior court, or it shall
26continue until the conditions of subdivision (e) are satisfied,
27whichever is earlier.
28(2) At any time during the appointment of the temporary
29manager, the director may request an extension of the appointment
30by filing a petition for hearing with the Office of Administrative
31Hearings and serving a copy of the petition on the licensee. The
32office shall proceed as specified in paragraph (2) of subdivision
33(f). The administrative law judge may extend the appointment of
34the temporary manager an additional 60 days upon a showing by
35the department that the conditions specified in subdivision (c)
36continue to exist.
37(3) The licensee or the department may request review of the
38administrative law judge’s decision on the extension as provided
39in paragraph (4) of subdivision
(f).
P365 1(i) The temporary manager appointed pursuant to this section
2shall meet the following qualifications:
3(1) Be qualified to oversee correction of deficiencies on the
4basis of experience and education.
5(2) Not be the subject of any pending actions by the department
6or any other state agency nor have ever been excluded from a
7department licensed facility or had a license or certification
8suspended or revoked by an administrative action by the
9department or any other state agency.
10(3) begin deleteHave no end deletebegin insertNot have a end insertfinancial ownership interest in the
11facility andbegin insert
notend insert havebegin delete noend deletebegin insert aend insert member of his or her immediate family
12who has a financial ownership interest in the facility.
13(4) Not currently serve, or within the past two years have served,
14as a member of the staff of the facility.
15(j) Payment of the costs of the temporary manager shall comply
16with the following requirements:
17(1) Upon agreement with the licensee, the costs of the temporary
18manager and any other expenses in connection with the temporary
19management shall be paid directly by the facility while the
20temporary manager is assigned to that facility. Failure of the
21licensee to agree to the payment
of those costs may result in the
22payment of the costs by the department and subsequent required
23reimbursementbegin delete ofend deletebegin insert
toend insert the department by the licensee pursuant to
24this section.
25(2) Direct costs of the temporary manager shall be equivalent
26to the sum of the following:
27(A) The prevailing fee paid by licensees for positions of the
28same type in the facility’s geographic area.
29(B) Additional costs that reasonably would have been incurred
30by the licensee if the licensee and the temporary manager had been
31in an employment relationship.
32(C) Any other reasonable costs incurred by the temporary
33manager in furnishing services pursuant to this section.
34(3) begin deleteMay end deletebegin insertDirect
costs may end insertexceed the amount specified in
35paragraph (2) if the department is otherwise unable to attract a
36qualified temporary manager.
37(k) (1) The responsibilities of the temporary manager may
38include, but are not limited to, the following:
39(A) Paying wages to staff. The temporary manager shall have
40the full power to hire, direct, manage, and discharge employees
P366 1of the facility, subject to any contractual rights they may have.
2The temporary manager shall pay employees at the same rate of
3compensation, including benefits, that the employees would have
4received from the licensee or wages necessary to provide adequate
5staff for the protection of clients and compliance with the law.
6(B) Preserving client funds. The temporary manager shall be
7entitled to, and shall take
possession of, all property or assets of
8clients that are in the possession of the licensee or administrator
9of the facility. The temporary manager shall preserve all property,
10assets, and records of clients of which the temporary manager takes
11possession.
12(C) Contracting for outside services as may be needed for the
13operation of the facility. Any contract for outside services in excess
14of five thousand dollars ($5,000) shall be approved by the director.
15(D) Paying commercial creditors of the facility to the extent
16required to operate the facility. The temporary manager shall honor
17all leases, mortgages, and secured transactions affecting the
18building in which the facility is located and all goods and fixtures
19in the building, but only to the extent of payments that, in the case
20of a rental agreement, are for the use of the property during the
21period of the temporary management,
or that, in the case of a
22purchase agreement, come due during the period of the temporary
23management.
24(E) Doing all things necessary and proper to maintain and
25operate the facility in accordance with sound fiscal policies. The
26temporary manager shall take action as is reasonably necessary to
27protect or conserve the assets or property of which the temporary
28manager takes possession and may use those assets or property
29only in the performance of the powers and duties set out in this
30section.
31(2) Expenditures by the temporary manager in excess of five
32thousand dollars ($5,000) shall be approved by the director. Total
33encumbrances and expenditures by the temporary manager for the
34duration of the temporary management shall not exceed the sum
35of forty-nine thousand nine hundred ninety-nine dollars ($49,999)
36unless approved by the director in writing.
37(3) The temporary manager shall make no capital improvements
38to the facility in excess of five thousand dollars ($5,000) without
39the approval of the director.
P367 1(l) (1) To the extent department funds are advanced for the
2costs of the temporary manager or for other expenses in connection
3with the temporary management, the department shall be
4reimbursed from the revenues accruing to the facility or to the
5licensee or an entity related to the licensee. Any reimbursement
6received by the department shall be redeposited in the account
7from which the department funds were advanced. If the revenues
8are insufficient to reimburse the department, the unreimbursed
9amount shall constitute grounds for a monetary judgment in civil
10court and a subsequent lien upon the assets of the facility or the
11proceeds from the sale thereof. Pursuant to Chapter 2 (commencing
12with Sectionbegin delete 697.510)end deletebegin insert
697.010)end insert of Division 2 of Title 9 of Part 2
13of the Code of Civil Procedure, a lien against the personal assets
14of the facility or an entity related to the licensee based on the
15monetary judgment obtained shall be filed with the Secretary of
16State on the forms required for a notice of judgment lien. A lien
17against the real property of the facility or an entity related to the
18licensee based on the monetary judgment obtained shall be
19recorded with the county recorder of the county where the facility
20of the licensee is located or where the real property of the entity
21related to the licensee is located. The lien shall not attach to the
22interests of a lessor, unless the lessor is operating the facility. The
23authority to place a lien against the personal and real property of
24the licensee for the reimbursement of any state funds expended
25pursuant to this section shall be given judgment creditor priority.
26(2) For
purposes of this section, “entity related to the licensee”
27means an entity, other than a natural person, of which the licensee
28is a subsidiary or an entity in which a person who was obligated
29to disclose information under Section 1520 possesses an interest
30that would also require disclosure pursuant to Section 1520.
31(m) Appointment of a temporary manager under this section
32does not relieve the licensee of any responsibility for the care and
33supervision of clients under this chapter. The licensee, even if the
34license is deemed surrendered or the facility abandoned, shall be
35required to reimburse the department for all costs associated with
36operation of the facility during the period the temporary manager
37is in place that are not accounted for by using facility revenues or
38for the relocation of clients handled by the department if the
39licensee fails to comply with the relocation requirements of Section
401556 when required by the department to do
so. If the licensee
P368 1fails to reimburse the department under this section, then the
2department, along with using its own remedies available under
3this chapter, may request that the Attorney General’s office, the
4city attorney’s office, or the local district attorney’s office seek
5any available criminal, civil, or administrative remedy, including,
6but not limited to, injunctive relief, restitution, and damages in the
7same manner as provided for in Chapter 5 (commencing with
8Section 17200) of Part 2 of Division 7 of the Business and
9Professions Code.
10(n) The department may use funds from the emergency client
11contingency account pursuant to Section 1546 when needed to
12supplement the operation of the facility or the transfer of clients
13under the control of the temporary manager appointed under this
14section if facility revenues are unavailable or exhausted when
15needed. Pursuant to subdivision (l), the licensee shall be required
16to reimburse the
department for any funds used from the emergency
17client contingency account during the period of control of the
18temporary manager and any incurred costs of collection.
19(o) This section does not apply to a residential facility that serves
20six or fewer persons and is also the principal residence of the
21licensee.
22(p) Notwithstanding any other provision of law, the temporary
23manager shall be liable only for damages resulting from gross
24negligence in the operation of the facility or intentional tortious
25acts.
26(q) All governmental immunities otherwise applicable to the
27state shall also apply to the state in the use of a temporary manager
28in the operation of a facility pursuant to this section.
29(r) A licensee shall not be liable for any occurrences during the
30
temporary management under this section except to the extent that
31the occurrences are the result of the licensee’s conduct.
32(s) The department may adopt regulations for the administration
33of this section.
Section 1546.2 of the Health and Safety Code is
35amended to read:
(a) It is the intent of the Legislature in enacting this
37section to authorize the department to take quick, effective action
38to protect the health and safety of residents of community care
39facilities and to minimize the effects of transfer trauma that
40accompany the abrupt transfer of clients through a system whereby
P369 1the department may apply for a court order appointing a receiver
2to temporarily operate a community care facility. The receivership
3is not intended to punish a licensee or to replace attempts to secure
4cooperative action to protect the clients’ health and safety. The
5receivership is intended to protect the clients in the absence of
6other reasonably available alternatives. The receiver shall assume
7the operation of the facility in order to bring it into compliance
8with law, facilitate a transfer of ownership to a new
licensee, or
9ensure the orderly transfer of clients should the facility be required
10to close.
11(b) (1) Whenever circumstances exist indicating that continued
12management of a community care facility by the current licensee
13would present a substantial probability or imminent danger of
14serious physical harm or death to the clients, or the facility is
15closing or intends to terminate operation as a community care
16facility and adequate arrangements forbegin insert theend insert relocation of clients
17have not been made at least 30 days prior to the closing or
18termination, the director may petition the superior court for the
19county in which the community care facility is located for an order
20appointing a receiver to temporarily operate the community care
21facility in accordance with this section.
22(2) The petition shall allege the facts upon which the action is
23based and shall be supported by an affidavit of the director. A copy
24of the petition andbegin delete affidavits,end deletebegin insert affidavit,end insert together with an order to
25appear and show cause why temporary authority to operate the
26community care facility should not be vested in a receiver pursuant
27to this section, shall be delivered to the licensee, administrator, or
28a responsible person at the facility to the attention of the licensee
29and administrator. The order shall specify a hearing date, which
30shall be not less than 10, nor more than 15, days following delivery
31of the petition and order upon the licensee, except that the court
32may shorten or lengthen the time upon a showing of just cause.
33(c) (1) If the director files a petition pursuant to subdivision (b)
34for appointment of a receiver to operate a community care facility,
35in accordance with Section 564 of the Code of Civil Procedure,
36the director may also petition the court, in accordance with Section
37527 of the Code of Civil Procedure, for an order appointing a
38temporary receiver. A temporary receiver appointed by the court
39pursuant to this subdivision shall serve until the court has made a
40final determination on the petition for appointment of a receiver
P370 1filed pursuant to subdivision (b). A receiver appointed pursuant
2to this subdivision shall have the same powers and duties as a
3receiver would have if appointed pursuant to subdivision (b). Upon
4the director filing a petition for a receiver, the receiver shall
5complete its application for a provisional license to operate a
6community care facility. For purposes of a provisional license
7issued to a receiver, the licensee’s existing fire safety clearance
8shall serve as the fire
safety clearance for the receiver’s provisional
9license.
10(2) At the time of the hearing, the department shall advise the
11licensee of the name of the proposed receiver. The receiver shall
12be a certified community care facility administrator or other
13responsible person or entity, as determined by the court, from a
14list of qualified receivers established by the department, and, if
15need be, with input from providers of residential care and consumer
16representatives. Persons appearing on the list shall have experience
17in the delivery of care services to clients of community care
18facilities, and, if feasible, shall have experience with the operation
19of a community care facility, shall not be the subject of any pending
20actions by the department or any other state agency, and shall not
21have ever been excluded from a department licensed facility nor
22have had a license or certification suspended or revoked by an
23administrative action by the department or
any other state agency.
24The receivers shall have sufficient background and experience in
25management and finances to ensure compliance with orders issued
26by the court. The owner, licensee, or administrator shall not be
27appointed as the receiver unless authorized by the court.
28(3) If at the conclusion of the hearing, which may include oral
29testimony and cross-examination at the option of any party, the
30court determines that adequate grounds exist for the appointment
31of a receiver and that there is no other reasonably available remedy
32to protect the clients, the court may issue an order appointing a
33receiver to temporarily operate the community care facility and
34enjoining the licensee from interfering with the receiver in the
35conduct of his or her duties. In these proceedings, the court shall
36make written findings of fact and conclusions of law and shall
37require an appropriate bond to be filed by the receiver and paid
38for by the licensee. The bond
shall be in an amount necessary to
39protect the licensee in the event of any failure on the part of the
P371 1receiver to act in a reasonable manner. The bond requirement may
2be waived by the licensee.
3(4) The court may permit the licensee to participate in the
4continued operation of the facility during the pendency of any
5receivership ordered pursuant to this section and shall issue an
6order detailing the nature and scope of participation.
7(5) Failure of the licensee to appear at the hearing on the petition
8shall constitute an admission of all factual allegations contained
9in the petition for purposes of these proceedings only.
10(6) The licensee shall receive notice and a copy of the
11application each time the receiver applies to the court or the
12department for instructions regarding his or her duties under this
13section,
when an accounting pursuant to subdivision (i) is
14submitted, and when any other report otherwise required under
15this section is submitted. The licensee shall have an opportunity
16to present objections or otherwise participate in those proceedings.
17(d) A person shall not impede the operation of a receivership
18created under this section. The receiver’s access to, or possession
19of, the property shall not be interfered with during the term of the
20receivership. There shall be an automatic stay for a 60-day period
21subsequent to the appointment of a receiver of any action that
22would interfere with the functioning of the facility, including, but
23not limited to, cancellation of insurance policies executed by the
24licensees, termination of utility services, attachments or setoffs of
25client trust funds and working capital accounts, and repossession
26of equipment in the facility.
27(e) When a
receiver is appointed, the licensee may, at the
28discretion of the court, be divested of possession and control of
29the facility in favor of the receiver. If the court divests the licensee
30of possession and control of the facility in favor of the receiver,
31the department shall immediately issue a provisional license to the
32receiver. Notwithstanding the applicable sections of this code
33governing the revocation of a provisional license, the provisional
34license issued to a receiver shall automatically expire upon the
35termination of the receivership. The receiver shall possess the
36provisional license solely for purposes of carrying out the
37responsibilities authorized by this section and the duties ordered
38by the court. The receiver shall have no right to appeal the
39expiration of the provisional license.
40(f) A receiver appointed pursuant to this section:
P372 1(1) May exercise those powers and
shall perform those duties
2ordered by the court, in addition to other duties provided by statute.
3(2) Shall operate the facility in a manner that ensures the safety
4and adequate care for the clients.
5(3) Shall have the same rights to possession of the building in
6which the facility is located, and of all goods and fixtures in the
7building at the time the petition for receivership is filed, as the
8licensee and administrator would have had if the receiver had not
9been appointed.
10(4) May use the funds, building, fixtures, furnishings, and any
11accompanying consumable goods in the provision of care and
12services to clients and to any other persons receiving services from
13the facility at the time the petition for receivership was filed.
14(5) Shall take title to
all revenue coming to the facility in the
15name of the receiver who shall use it for the following purposes
16in descending order of priority:
17(A) To pay wages to staff. The receiver shall have full power
18to hire, direct, manage, and discharge employees of the facility,
19subject to any contractual rights they may have. The receiver shall
20pay employees at the same rate of compensation, including
21benefits, that the employees would have received from the licensee
22or wages necessary to provide adequate staff for the protection of
23the clients and compliance with the law.
24(B) To preserve client funds. The receiver shall be entitled to,
25and shall take, possession of all property or assets of clients that
26are in the possession of the licensee or operator of the facility. The
27receiver shall preserve all property, assets, and records of clients
28of which the receiver takes possession.
29(C) To contract for outside services as may be needed for the
30operation of the community care facility. Any contract for outside
31services in excess of five thousand dollars ($5,000) shall be
32approved by the court.
33(D) To pay commercial creditors of the facility to the extent
34required to operate the facility. Except as provided in subdivision
35(h), the receiver shall honor all leases, mortgages, and secured
36transactions affecting the building in which the facility is located
37and all goods and fixtures in the building of which the receiver
38has taken possession, but only to the extent of payments which,
39in the case of a rental agreement, are for the use of the property
P373 1during the period of receivership, or which, in the case of a
2purchase agreement, come due during the period of receivership.
3(E) To receive a salary, as approved by the court.
4(F) To do all things necessary and proper to maintain and operate
5the facility in accordance with sound fiscal policies. The receiver
6shall take action as is reasonably necessary to protect or conserve
7the assets or property of which the receiver takes possession and
8may use those assets or property only in the performance of the
9powers and duties set out in this section and by order of the court.
10(G) To ask the court for direction in the treatment of debts
11incurred prior to the appointment, if the licensee’s debts appear
12extraordinary, of questionable validity, or unrelated to the normal
13and expected maintenance and operation of the facility, or if
14payment of the debts will interfere with the purposes of
15receivership.
16(g) (1) A person who is served with notice of an order
of the
17court appointing a receiver and of the receiver’s name and address
18shall be liable to pay the receiver, rather than the licensee, for any
19goods or services provided by the community care facility after
20the date of the order. The receiver shall give a receipt for each
21payment and shall keep a copy of each receipt on file. The receiver
22shall deposit amounts received in a special account and shall use
23this account for all disbursements. Payment to the receiver pursuant
24to this subdivision shall discharge the obligation to the extent of
25the payment and shall not thereafter be the basis of a claim by the
26licensee or any other person. A client shall not be evicted nor may
27any contract or rights be forfeited or impaired, nor may any
28forfeiture be effected or liability increased, by reason of an
29omission to pay the licensee, operator, or other person a sum paid
30to the receiver pursuant to this subdivision.
31(2) This section shall not be construed
to suspend, during the
32temporary management by the receiver, any obligation of the
33licensee for payment of local, state, or federal taxes. A licensee
34shall not be held liable for acts or omissions of the receiver during
35the term of the temporary management.
36(3) Upon petition of the receiver, the court may order immediate
37payment to the receiver for past services that have been rendered
38and billed, and the court may also order a sum not to exceed one
39month’s advance payment to the receiver of any sums that may
40become payable under the Medi-Cal program.
P374 1(h) (1) A receiver shall not be required to honor a lease,
2mortgage, or secured transaction entered into by the licensee of
3the facility and another party if the court finds that the agreement
4between the parties was entered into for a collusive, fraudulent
5purpose or that the agreement is unrelated to the
operation of the
6facility.
7(2) A lease, mortgage, or secured transaction or an agreement
8unrelated to the operation of the facility that the receiver is
9permitted to dishonor pursuant to this subdivision shall only be
10subject to nonpayment by the receiver for the duration of the
11receivership, and the dishonoring of the lease, mortgage, security
12interest, or other agreement, to this extent, by the receiver shall
13not relieve the owner or operator of the facility from any liability
14for the full amount due under the lease, mortgage, security interest,
15or other agreement.
16(3) If the receiver is in possession of real estate or goods subject
17to a lease, mortgage, or security interest that the receiver is
18permitted tobegin delete avoidend deletebegin insert
dishonorend insert pursuant to paragraph (1), and if the
19real estate or goods are necessary for the continued operation of
20the facility, the receiver may apply to the court to set a reasonable
21rent, price, or rate of interest to be paid by the receiver during the
22duration of the receivership. The court shall hold a hearing on this
23application within 15 days. The receiver shall send notice of the
24application to any known owner of the property involved at least
2510 days prior to the hearing.
26(4) Payment by the receiver of the amount determined by the
27court to be reasonable is a defense to any action against the receiver
28for payment or possession of the goods or real estate, subject to
29the lease or mortgage, which is brought by any person who received
30the notice required by this subdivision. However, payment by the
31receiver of the amount determined by the court to be reasonable
32shall not relieve the owner or operator of
the facility from any
33liability for the difference between the amount paid by the receiver
34and the amount due under the original lease, mortgage, or security
35interest.
36(i) A monthly accounting shall be made by the receiver to the
37department of all moneys received and expended by the receiver
38on or before the 15th day of the following month or as ordered by
39the court, and the remainder of income over expenses for that
40month shall be returned to the licensee. A copy of the accounting
P375 1shall be provided to the licensee. The licensee or owner of the
2community care facility may petition the court for a determination
3as to the reasonableness of any expenditure made pursuant to
4paragraph (5) of subdivision (f).
5(j) (1) The receiver shall be appointed for an initial period of
6not more than three months. The initial three-month period may
7be extended for additional
periods not exceeding three months, as
8determined by the court pursuant to this section. At the end of one
9month, the receiver shall report to the court on its assessment of
10the probability that the community care facility will meet state
11standards for operation by the end of the initial three-month period
12and will continue to maintain compliance with those standards
13after termination of the receiver’s management. If it appears that
14the facility cannot be brought into compliance with state standards
15within the initial three-month period, the court shall take
16appropriate action as follows:
17(A) Extend the receiver’s management for an additional three
18months if there is a substantial likelihood that the facility will meet
19state standards within that period and will maintain compliance
20with the standards after termination of the receiver’s management.
21The receiver shall report to the court in writing upon the facility’s
22progress at the end of six
weeks of any extension ordered pursuant
23to this paragraph.
24(B) Order the director to revoke or temporarily suspend, or both,
25the license pursuant to Article 5 (commencing with Section 1550)
26and extend the receiver’s management for the period necessary to
27transfer clients in accordance with the transfer plan, but for not
28more than three months from the date of initial appointment of a
29receiver, or 14 days, whichever is greater. An extension of an
30additional three months may be granted if deemed necessary by
31the court.
32(2) If it appears at the end of six weeks of an extension ordered
33pursuant to subparagraph (A) of paragraph (1) that the facility
34cannot be brought into compliance with state standards for
35operation or that it will not maintain compliance with those
36standards after the receiver’s management is terminated, the court
37shall take appropriate action as specified in
subparagraph (B) of
38paragraph (1).
39(3) In evaluating the probability that a community care facility
40will maintain compliance with state standards of operation after
P376 1the termination of receiver management ordered by the court, the
2court shall consider at least the following factors:
3(A) The duration, frequency, and severity of past violations in
4the facility.
5(B) History of compliance in other care facilities operated by
6the proposed licensee.
7(C) Efforts by the licensee to prevent and correct past violations.
8(D) The financial ability of the licensee to operate in compliance
9with state standards.
10(E) The recommendations and reports of the receiver.
11(4) Management of a community care facility operated by a
12receiver pursuant to this section shall not be returned to the
13licensee, to any person related to the licensee, or to any person
14who served as a member of the facility’s staff or who was
15employed by the licensee prior to the appointment of the receiver
16unless both of the following conditions are met:
17(A) The department believes that it would be in the best interests
18of the clients of the facility, requests that the court return the
19operation of the facility to the former licensee, and provides clear
20and convincing evidence to the court that it is in the best interests
21of the facility’s clients to take that action.
22(B) The court finds that the licensee has fully cooperated with
23the department in the appointment and ongoing activities of
a
24receiver appointed pursuant to this section, and, if applicable, any
25temporary manager appointed pursuant to Section 1546.1.
26(5) The owner of the facility may at any time sell, lease, or close
27the facility, subject to the following provisions:
28(A) If the owner closes the facility, or the sale or lease results
29in the closure of the facility, the court shall determine if a transfer
30plan is necessary. If the court so determines, the court shall adopt
31and implement a transfer plan consistent with the provisions of
32Section 1556.
33(B) If the licensee proposes to sell or lease the facility and the
34facility will continue to operate as a community care facility, the
35court and the department shall reevaluate any proposed transfer
36plan. If the court and the department determine that the sale or
37lease of the facility will
result in compliance with licensing
38standards, the transfer plan and the receivership shall, subject to
39those conditions that the court may impose and enforce, be
40terminated upon the effective date of the sale or lease.
P377 1(k) (1) The salary of the receiver shall be set by the court
2commensurate with community care facility industry standards,
3giving due consideration to the difficulty of the duties undertaken,
4and shall be paid from the revenue coming to the facility. If the
5revenue is insufficient to pay the salary in addition to other
6expenses of operating the facility, the receiver’s salary shall be
7paid from the emergency client contingency account as provided
8in Section 1546. State advances of funds in excess of five thousand
9dollars ($5,000) shall be approved by the director. Total advances
10for encumbrances and expenditures shall not exceed the sum of
11forty-nine thousand nine hundred ninety-nine dollars ($49,999)
12
unless approved by the director in writing.
13(2) To the extent state funds are advanced for the salary of the
14receiver or for other expenses in connection with the receivership,
15as limited by subdivision (g), the state shall be reimbursed from
16the revenues accruing to the facility or to the licensee or an entity
17related to the licensee. Any reimbursement received by the state
18shall be redeposited in the account from which the state funds were
19advanced. If the revenues are insufficient to reimburse the state,
20the unreimbursed amount shall constitute grounds for a monetary
21judgment in civil court and a subsequent lien upon the assets of
22the facility or the proceeds from the sale thereof. Pursuant to
23Chapter 2 (commencing with Sectionbegin delete 697.510)end deletebegin insert 697.010)end insert of
24
Division 2 of Title 9 of Part 2 of the Code of Civil Procedure, a
25lien against the personal assets of the facility or an entity related
26to the licensee based on the monetary judgment obtained shall be
27filed with the Secretary of State on the forms required for a notice
28of judgment lien. A lien against the real property of the facility or
29an entity related to the licensee based on the monetary judgment
30obtained shall be recorded with the county recorder of the county
31where the facility of the licensee is located or where the real
32property of the entity related to the licensee is located. The lien
33shall not attach to the interests of a lessor, unless the lessor is
34operating the facility. The authority to place a lien against the
35personal and real property of the licensee for the reimbursement
36of any state funds expended pursuant to this section shall be given
37judgment creditor priority.
38(3) For purposes of this subdivision, “entity related to the
39
licensee” means an entity, other than a natural person, of which
40the licensee is a subsidiary or an entity in which any person who
P378 1was obligated to disclose information under Section 1520 possesses
2an interest that would also require disclosure pursuant to Section
31520.
4(l) (1) This section does not impair the right of the owner of a
5community care facility to dispose of his or her property interests
6in the facility, but any facility operated by a receiver pursuant to
7this section shall remain subject to that administration until
8terminated by the court. The termination shall be promptly
9effectuated, provided that the interests of the clients have been
10safeguarded as determined by the court.
11(2) This section does not limit the power of the court to appoint
12a receiver under any other applicable provision of law or to order
13any other remedy available under
law.
14(m) (1) Notwithstanding any other provision of law, the receiver
15shall be liable only for damages resulting from gross negligence
16in the operation of the facility or intentional tortious acts.
17(2) All governmental immunities otherwise applicable to the
18State of California shall also apply in the use of a receiver in the
19operation of a facility pursuant to this section.
20(3) The licensee shall not be liable for any occurrences during
21the receivership except to the extent that the occurrences are the
22result of the licensee’s conduct.
23(n) The department may adopt regulations for the administration
24of this section. This section does not impair the authority of the
25department to temporarily suspend licenses under Section 1550.5
26or
to reach a voluntary agreement with the licensee for alternate
27management of a community care facility including the use of a
28temporary manager under Section 1546.1. This section does not
29authorize the department to interfere in a labor dispute.
30(o) This section does not apply to a residential facility that serves
31six or fewer persons and is also the principal residence of the
32licensee.
33(p) This section does not apply to a licensee that has obtained
34a certificate of authority to offer continuing care contracts, as
35defined in paragraph (8) of subdivision (c) of Section 1771.
Section 1562 of the Health and Safety Code is
37amended to read:
(a) The director shall ensure that operators and staffs of
39community care facilities have appropriate training to provide the
40care and services for which a license or certificate is issued.begin delete Theend delete
P379 1begin insert Thisend insert sectionbegin delete shallend deletebegin insert doesend insert not apply to a facility licensed as an Adult
2Residential Facility for Persons with Special Health Care Needs
3pursuant to Article 9 (commencing with Section 1567.50).
4(b) It is
the intent of the Legislature that children in foster care
5reside in the least restrictive, family-based settings that can meet
6their needs, and that group homes will be used only for short-term,
7specialized, and intensive treatment purposes that are consistent
8with a case plan that is determined by a child’s best interests.
9Accordingly, the Legislature encourages the department to adopt
10policies, practices, and guidance that ensure that the education,
11qualification, and training requirements for child care staff in group
12homes are consistent with the intended role of group homes to
13provide short-term, specialized, and intensive treatment, with a
14particular focus on crisis intervention, behavioral stabilization,
15and other treatment-related goals, as well as the connections
16between those efforts and work toward permanency for children.
17(c) (1) On and after October 1, 2014, each person employed as
18a facility manager or staff
member of a group home, as defined in
19paragraph (13) of subdivision (a) of Section 1502, who provides
20direct care and supervision to children and youth residing in the
21group home shall be at least 21 years of age.
22(2) Paragraph (1)begin delete shallend deletebegin insert doesend insert not apply to a facility manager or
23staff member employed at the group home before October 1, 2014.
24(3) For purposes of this subdivision, “group home” does not
25include a runaway and homeless youth shelter.
Section 1567.62 of the Health and Safety Code is
27amended to read:
(a) Each enhanced behavioral supports home shall
29be licensed as an adult residential facility or a group home and
30certified by the State Department of Developmental Services.
31(b) A certificate of program approval issued by the State
32Department of Developmental Services shall be a condition of
33licensure for the enhanced behavioral supports home by the State
34Department of Social Services.
35(c) An enhanced behavioral supports home shall not be licensed
36by the State Department of Social Services until the certificate of
37program approval, granted by the State Department of
38Developmental Services, has been received.
39(d) Placements of dual
agency clients into enhanced behavioral
40supports homes that are licensed as group homes shall be subject
P380 1to the limitations on the duration of the placement set forth in
2Sections 319.2 and 319.3 of, and subparagraph (A) of paragraph
3(8) and subparagraph (A) of paragraph (9) of subdivision (e) of
4Section 361.2 of, the Welfare and Institutions Code.
5(e) For the purpose of this article, dual agency clients are foster
6children in temporary custody of the child welfare agency under
7Section 319 of the Welfare and Institutions Code or under the
8jurisdiction of the juvenile court pursuant to Section 300, 450, 601,
9or 602 of the Welfare and Institutions Code who are also either a
10consumer of regional center services, or who are receiving services
11under the California Early Intervention Services Act (Title 14begin delete (the begin insert
(commencingend insert with Section
12age of commencingend deletebegin delete 45000)end deletebegin insert 95000)end insert of
13the Government Code) but who are under three years of age and
14have not yet been determined to have a developmental disability.
15(f) The State Department of Social Servicesbegin delete shallend deletebegin insert isend insert notbegin delete beend delete
16 responsible for any of the following:
17(1) Developing and approving a consumer’s individual behavior
18supports plan in conjunction with the consumer’s
individual
19behavior supports team.
20(2) (A) Oversight of any services that may be provided by a
21licensed health professional or licensed mental health professional
22to a consumer.
23(B) Services provided by a licensed health or licensed mental
24health professional means services that may only be provided under
25the authority of the licensed health service provider’s or licensed
26mental health service provider’s professional license.
27(g) Subdivision (f)begin delete shallend deletebegin insert doesend insert not limit the State Department of
28Social Services’ ability to enforce Chapter 3 (commencing with
29Section 1500), and applicable
regulations.
Section 1567.69 of the Health and Safety Code is
31amended to read:
begin deleteNothing in this end deletebegin insertThis end insertarticlebegin delete shallend deletebegin insert does notend insert interfere
33with the authority of the State Department of Social Services to
34temporarily suspend or revoke the license of an enhanced
35behavioral supports home pursuant to Section 1550begin delete of the Health .
36and Safety Codeend delete
Section 1568.07 of the Health and Safety Code is
38amended to read:
(a) (1) Within 90 days after a facility accepts its
40first resident for placement following its initial licensure, the
P381 1department shall conduct an unannounced inspection of the facility
2to evaluate compliance with rules and regulations and to assess
3the facility’s continuing ability to meet regulatory requirements.
4The licensee shall notify the department, within five business days
5after accepting its first resident for placement, that the facility has
6commenced operating.
7(2) The department may take appropriate remedial action as
8provided for in this chapter.
9(b) (1) Every licensed residential care facility shall be
10periodically inspected and evaluated for
quality of care by a
11representative or representatives designated by the director.
12Unannounced inspections shall be conducted at least annually and
13as often as necessary to ensure the quality of care being provided.
14(2) During each licensing inspection the department shall
15determine if the facility meets regulatory standards, including, but
16not limited to, providing residents with the appropriate level of
17care based on the facility’s license, providing adequate staffing
18and services, updated resident records and assessments, and
19compliance with basic health and safety standards.
20(3) If the department determines that a resident requires a higher
21level of care than the facility is authorized to provide, the
22department may initiate a professional level of care assessment by
23an assessor approved by the department. An assessment shall be
24conducted in consultation with the resident, the
resident’s physician
25and surgeon, and the resident’s case manager, and shall reflect the
26desires of the resident, the resident’s physician and surgeon, and
27the resident’s case manager. The assessment also shall recognize
28that certain illnesses are episodic in nature and that the resident’s
29need for a higher level of care may be temporary.
30(4) The department shall notify the residential care facility in
31writing of all deficiencies in its compliance with this chapter and
32the rules and regulations adopted pursuant to this chapter, and shall
33set a reasonable length of time for compliance by the facility.
34(5) Reports on the results of each inspection or consultation
35shall be kept on file in the department, and all inspection reports,
36consultation reports, lists of deficiencies, and plans of correction
37shall be open to public inspection.
38(c) Any duly authorized officer, employee, or agent of the
39department may, upon presentation of proper identification, enter
40and inspect any place providing personal care, supervision, and
P382 1services, at any time, with or without advance notice, to secure
2compliance with, or to prevent a violation of, this chapter.
3(d) begin deleteNo end deletebegin insertA end insertlicensee, or officer or employee of the licensee, shall
4begin insert notend insert discriminate or retaliate in any manner, including, but not
5limited to, eviction or threat of eviction, against any person
6receiving the services of the licensee’s facility, or against any
7employee of the licensee’s
facility, on the basis, or for the reason,
8that the person or employee or any other personbegin delete hasend delete initiated or
9participated in the filing of a complaint, grievance, or a request
10for inspection with the department pursuant to this chapter orbegin delete hasend delete
11 initiated or participated in the filing of a complaint, grievance, or
12request for investigation with the appropriate local or state
13ombudsman.
14(e) begin deleteAny end deletebegin insertA end insertperson who, without lawful authorization from a duly
15authorized officer, employee, or agent of the department, informs
16an owner, operator, employee, agent, or resident of a residential
17care facility, of
an impending or proposed inspection of that facility
18by personnel of the department, is guilty of a misdemeanor and
19upon conviction thereof shall be punished by a fine not to exceed
20one thousand dollars ($1,000), by imprisonment in the county jail
21for a period not to exceed 180 days, or by both a fine and
22imprisonment.
Section 1568.0823 of the Health and Safety Code,
24as added by Section 3 of Chapter 888 of the Statutes of 1991, is
25amended and renumbered to read:
begin deleteAny end deletebegin insertA end insertperson who, without lawful authorization
28from a duly authorized officer, employee, or agent of the
29department, informs an owner, operator, employee, agent, or
30resident of a residential care facility for persons with a chronic,
31life-threatening illness of an impending and unannounced site visit
32to that facility by personnel of the department, is guilty of a
33misdemeanor and upon conviction thereof shall be punished
by a
34fine not to exceed one thousand dollars ($1,000), by imprisonment
35in the county jail for a period not to exceed 180 days, or by both
36a fine and imprisonment.
Section 1569.335 of the Health and Safety Code is
38amended to read:
(a) The department shall provide the Office of the
40State Long-Term Care Ombudsman, as defined in subdivision (c)
P383 1of Section 9701 of the Welfare and Institutions Code, with a
2precautionary notification if the department begins to prepare to
3issue a temporary suspension or revocation of any license, so that
4the office may properly prepare to provide advocacy services if
5and when necessary.
6(b) The department shall notify affected public placement
7agencies and the Office of the State Long-Term Carebegin delete Ombudsman,end delete
8begin insert Ombudsmanend insert whenever the department substantiates that a violation
9has
occurred that poses a serious threat to the health and safety of
10any resident when the violation results in the assessment of any
11penalty or causes an accusation to be filed for the revocation of a
12license.
13(c) (1) If the violation is appealed by the facility within 10 days,
14the department shall only notify placement agencies of the violation
15when the appeal has been exhausted.
16(2) If the appeal process has not been completed within 60 days,
17the placement agency shall be notified with a notation that indicates
18that the case is still under appeal.
19(3) The notice to each placement agency shall be updated
20monthly for the following 24-month period and shall include the
21name and location of the facility, the amount of the fine, the nature
22of the violation, the corrective action taken, the status of
the
23revocation, and the resolution of the complaint.
Section 1569.481 of the Health and Safety Code is
25amended to read:
(a) (1) It is the intent of the Legislature in enacting
27this section to authorize the department to take quick, effective
28action to protect the health and safety of residents of residential
29care facilities for the elderly and to minimize the effects of transfer
30trauma that accompany the abrupt transfer of residents by
31appointing a temporary manager to assume the operation of a
32facility that is found to be in a condition in which continued
33operation by the licensee or his or her representative presents a
34substantial probability of imminent danger of serious physical
35harm or death to the residents.
36(2) A temporary manager appointed pursuant to this section
37shall assume the operation of the facility in order to bring it into
38compliance with the
law, facilitate a transfer of ownership to a
39new licensee, or ensure the orderly transfer of residents should the
40facility be required to close. Upon a final decision and order of
P384 1revocation of the license, issuance of a temporary suspension, or
2a forfeiture by operation of law, the department shall immediately
3issue a provisional license to the appointed temporary manager.
4Notwithstanding the applicable sections of this code governing
5the revocation of a provisional license, the provisional license
6issued to a temporary manager shall automatically expire upon the
7termination of the temporary manager. The temporary manager
8shall possess the provisional license solely for purposes of carrying
9out the responsibilities authorized by this section and the duties
10set forth in the written agreement between the department and the
11temporary manager. The temporary managerbegin delete shallend deletebegin insert
does notend insert have
12begin delete noend deletebegin insert theend insert right to appeal the expiration of the provisional license.
13(b) For purposes of this section, “temporary manager” means
14the person, corporation, or other entity appointed temporarily by
15the department as a substitute facility licensee or administrator
16with authority to hire, terminate, reassign staff, obligate facility
17funds, alter facility procedures, and manage the facility to correct
18deficiencies identified in the facility’s operation. The temporary
19managerbegin delete shall haveend deletebegin insert hasend insert the final authority to direct the
care and
20supervision activities of any person associated with the facility,
21including superseding the authority of the licensee and the
22administrator.
23(c) The director, in order to protect the residents of the facility
24from physical or mental abuse, abandonment, or any other
25substantial threat to health or safety, may appoint a temporary
26manager when any of the following circumstances exist:
27(1) The director determines that it is necessary to temporarily
28suspend the license of a residential care facility for the elderly
29pursuant to Section 1569.50 and the immediate relocation of the
30residents is not feasible based on transfer trauma, lack of available
31alternative placements, or other emergency considerations for the
32health and safety of the residents.
33(2) The licensee is unwilling or unable to comply with the
34
requirements of Section 1569.525 or the requirements of Section
351569.682 regarding the safe and orderly relocation of residents
36when ordered to do so by the department or when otherwise
37required by law.
38(3) The licensee has opted to secure a temporary manager
39pursuant to Section 1569.525.
P385 1(d) (1) Upon appointment, the temporary manager shall
2complete its application for a license to operate a residential care
3facility for the elderly and take all necessary steps and make best
4efforts to eliminate any substantial threat to the health and safety
5to residents or complete the transfer of residents to alternative
6placements pursuant to Section 1569.525 or 1569.682. For purposes
7of a provisional license issued to a temporary manager, the
8licensee’s existing fire safety clearance shall serve as the fire safety
9clearance for the temporary manager’s provisional
license.
10(2) A person shall not impede the operation of a temporary
11manager. The temporary manager’s access to, or possession of,
12the property shall not be interfered with during the term of the
13temporarybegin delete managerend deletebegin insert manager’send insert appointment. There shall be an
14automatic stay for a 60-day period subsequent to the appointment
15of a temporary manager of any action that would interfere with
16the functioning of the facility, including, but not limited to,
17termination of utility services, attachments, or setoffs of resident
18trust funds, and repossession of equipment in the facility.
19(e) (1) The appointment of a temporary manager shall be
20immediately effective and shall continue for a
period not to exceed
2160 days unless otherwise extended in accordance with paragraph
22(2) of subdivision (h) at the discretion of the department or as
23permitted by paragraph (2) of subdivision (d) of Section 1569.525,
24or unless otherwise terminated earlier by any of the following
25events:
26(A) The temporary manager notifies the department, and the
27department verifies, that the facility meets state and, if applicable,
28federal standards for operation, and will be able to continue to
29maintain compliance with those standards after the termination of
30the appointment of the temporary manager.
31(B) The department approves a new temporary manager.
32(C) A new operator is licensed.
33(D) The department closes the facility.
34(E) A hearing or court order ends the temporary manager
35appointment, including the appointment of a receiver under Section
361569.482.
37(F) The appointment is terminated by the department or the
38temporary manager.
39(2) The appointment of a temporary manager shall authorize
40the temporary manager to act pursuant to this section. The
P386 1appointment shall be made pursuant to a written agreement between
2the temporary manager and the department that outlines the
3circumstances under which the temporary manager may expend
4funds. The department shall provide the licensee and administrator
5with a copy of the accusation to appoint a temporary manager at
6the time of appointment. The accusation shall notify the licensee
7of the licensee’s right to petition the Office of Administrative
8Hearings for a hearing to contest the appointment of the
temporary
9manager as described in subdivision (f) and shall provide the
10licensee with a form and appropriate information for the licensee’s
11use in requesting a hearing.
12(3) The director may rescind the appointment of a temporary
13manager and appoint a new temporary manager at any time that
14the director determines the temporary manager is not adhering to
15the conditions of the appointment.
16(f) (1) The licensee of a residential care facility for the elderly
17may contest the appointment of the temporary manager by filing
18a petition for an order to terminate the appointment of the
19temporary manager with the Office of Administrative Hearings
20within 15 days from the date of mailing of the accusation to appoint
21a temporary manager under subdivision (e). On the same daybegin delete asend delete
22 the petition
is filed with the Office of Administrative Hearings,
23the licensee shall serve a copy of the petition to the office of the
24director.
25(2) Upon receipt of a petition under paragraph (1), the Office
26of Administrative Hearings shall set a hearing date and time within
2710 business days of the receipt of the petition. The office shall
28promptly notify the licensee and the department of the date, time,
29and place of the hearing. The office shall assign the case to an
30administrative law judge. At the hearing, relevant evidence may
31be presented pursuant to Section 11513 of the Government Code.
32The administrative law judge shall issue a written decision on the
33petition within 10 business days of the conclusion of the hearing.
34The 10-day time period for holding the hearing and for rendering
35a decision may be extended by the written agreement of the parties.
36(3) The administrative law judge shall
uphold the appointment
37of the temporary manager if the department proves, by a
38preponderance of the evidence, that the circumstances specified
39in subdivision (c) applied to the facility at the time of the
40appointment. The administrative law judge shall order the
P387 1termination of the temporary manager if the burden of proof is not
2satisfied.
3(4) The decision of the administrative law judge is subject to
4judicial review as provided in Section 1094.5 of the Code of Civil
5Procedure by the superior court of the county where the facility is
6located. This review may be requested by the licensee of the facility
7or the department by filing a petition seeking relief from the order.
8The petition may also request the issuance of temporary injunctive
9relief pending the decision on the petition. The superior court shall
10hold a hearing within 10 business days of the filing of the petition
11and shall issue a decision on the petition within 10 days of the
12hearing.
The department may be represented by legal counsel
13within the department for purposes of court proceedings authorized
14under this section.
15(g) If the licensee does not protest the appointment or does not
16prevail at either the administrative hearing under paragraph (2) of
17subdivision (f) or the superior court hearing under paragraph (4)
18of subdivision (f), the temporary manager shall continue in
19accordance with subdivision (e).
20(h) (1) If the licensee petitions the Office of Administrative
21Hearings pursuant to subdivision (f), the appointment of the
22temporary manager by the director pursuant to this section shall
23continue until it is terminated by the administrative law judge or
24by the superior court, or it shall continue until the conditions of
25subdivision (e) are satisfied, whichever is earlier.
26(2) At any time during the appointment of the temporary
27manager, the director may request an extension of the appointment
28by filing a petition for hearing with the Office of Administrative
29Hearings and serving a copy of the petition on the licensee. The
30office shall proceed as specified in paragraph (2) of subdivision
31(f). The administrative law judge may extend the appointment of
32the temporary manager an additional 60 days upon a showing by
33the department that the conditions specified in subdivision (c)
34continue to exist.
35(3) The licensee or the department may request review of the
36administrative law judge’s decision on the extension as provided
37in paragraph (4) of subdivision (f).
38(i) The temporary manager appointed pursuant to this section
39shall meet the following qualifications:
P388 1(1) Be qualified to
oversee correction of deficiencies in a
2residential care facility for the elderly on the basis of experience
3and education.
4(2) Not be the subject of any pending actions by the department
5or any other state agency nor have ever been excluded from a
6department-licensed facility or had a license or certification
7suspended or revoked by an administrative action by the
8department or any other state agency.
9(3) begin deleteHave no end deletebegin insertNot have a end insertfinancial ownership interest in the
10facility andbegin insert notend insert havebegin delete noend deletebegin insert
aend insert member of his or her immediate family
11who has a financial ownership interest in the facility.
12(4) Not currently serve, or within the past two years have served,
13as a member of the staff of the facility.
14(j) Payment of the costs of the temporary manager shall comply
15with the following requirements:
16(1) Upon agreement with the licensee, the costs of the temporary
17manager and any other expenses in connection with the temporary
18management shall be paid directly by the facility while the
19temporary manager is assigned to that facility. Failure of the
20licensee to agree to the payment of those costs may result in the
21payment of the costs by the department and subsequent required
22reimbursement of the department by the licensee pursuant to this
23section.
24(2) Direct costs of the temporary manager shall be equivalent
25to the sum of the following:
26(A) The prevailing fee paid by licensees for positions of the
27same type in the facility’s geographic area.
28(B) Additional costs that reasonably would have been incurred
29by the licensee if the licensee and the temporary manager had been
30in an employment relationship.
31(C) begin deleteAny other end deletebegin insertOther end insertreasonable costs incurred by the temporary
32manager in furnishing services pursuant to this section.
33(3) Direct costs may exceed the
amount specified in paragraph
34(2) if the department is otherwise unable to find a qualified
35temporary manager.
36(k) (1) The responsibilities of the temporary manager may
37include, but are not limited to, the following:
38(A) Paying wages to staff. The temporary manager shall have
39the full power to hire, direct, manage, and discharge employees
40of the facility, subject to any contractual rights they may have.
P389 1The temporary manager shall pay employees at the same rate of
2compensation, including benefits, that the employees would have
3received from the licensee or wages necessary to provide adequate
4staff for the protection of clients and compliance with the law.
5(B) Preserving resident funds. The temporary manager shall be
6entitled to, and shall take possession of, all property or assets of
7residents
that are in the possession of the licensee or administrator
8of the facility. The temporary manager shall preserve all property,
9assets, and records of residents of which the temporary manager
10takes possession.
11(C) Contracting for outside services as may be needed for the
12operation of the facility.begin delete Anyend deletebegin insert Aend insert contract for outside services in
13excess of five thousand dollars ($5,000) shall be approved by the
14director.
15(D) Paying commercial creditors of the facility to the extent
16required to operate the facility. The temporary manager shall honor
17all leases, mortgages, and secured transactions affecting the
18building in which the facility is located and all goods and fixtures
19in the building, but only
to the extent of payments that, in the case
20of a rental agreement, are for the use of the property during the
21period of the temporary management, or that, in the case of a
22purchase agreement, come due during the period of the temporary
23management.
24(E) Performing all acts that are necessary and proper to maintain
25and operate the facility in accordance with sound fiscal policies.
26The temporary manager shall take action as is reasonably necessary
27to protect or conserve the assets or property of which the temporary
28manager takes possession and may use those assets or property
29only in the performance of the powers and duties set forth in this
30section.
31(2) Expenditures by the temporary manager in excess of five
32thousand dollars ($5,000) shall be approved by the director. Total
33encumbrances and expenditures by the temporary manager for the
34duration of the temporary management shall not
exceed the sum
35of forty-nine thousand nine hundred ninety-nine dollars ($49,999)
36unless approved by the director in writing.
37(3) The temporary manager shall not make capital improvements
38to the facility in excess of five thousand dollars ($5,000) without
39the approval of the director.
P390 1(l) (1) To the extent department funds are advanced for the
2costs of the temporary manager or for other expenses in connection
3with the temporary management, the department shall be
4reimbursed from the revenues accruing to the facility or to the
5licensee or an entity related to the licensee. Any reimbursement
6received by the department shall be redeposited in the account
7from which the department funds were advanced. If the revenues
8are insufficient to reimburse the department, the unreimbursed
9amount shall constitute grounds for a monetary judgment in civil
10court and a
subsequent lien upon the assets of the facility or the
11proceeds from the sale thereof. Pursuant to Chapter 2 (commencing
12with Sectionbegin delete 697.510)end deletebegin insert
697.010)end insert of Division 2 of Title 9 of Part 2
13of the Code of Civil Procedure, a lien against the personal assets
14of the facility or an entity related to the licensee based on the
15monetary judgment obtained shall be filed with the Secretary of
16State on the forms required for a notice of judgment lien. A lien
17against the real property of the facility or an entity related to the
18licensee based on the monetary judgment obtained shall be
19recorded with the county recorder of the county where the facility
20of the licensee is located or where the real property of the entity
21related to the licensee is located. The lien shall not attach to the
22interests of a lessor, unless the lessor is operating the facility. The
23authority to place a lien against the personal and real property of
24the licensee for the reimbursement of any state funds expended
25pursuant to this section shall be given judgment creditor priority.
26(2) For
purposes of this section, “entity related to the licensee”
27means an entity, other than a natural person, of which the licensee
28is a subsidiary or an entity in which a person who was obligated
29to disclose information under Section 1569.15 possesses an interest
30that would also require disclosure pursuant to Section 1569.15.
31(m) Appointment of a temporary manager under this section
32does not relieve the licensee of any responsibility for the care and
33supervision of residents under this chapter. The licensee, even if
34the license is deemed surrendered or the facility abandoned, shall
35be required to reimburse the department for all costs associated
36with operation of the facility during the period the temporary
37manager is in place that are not accounted for by using facility
38revenues or for the relocation of residents handled by the
39department if the licensee fails to comply with the relocation
40requirements of Section 1569.525 or 1569.682 when required
by
P391 1the department to do so. If the licensee fails to reimburse the
2department under this section, then the department, along with
3using its own remedies available under this chapter, may request
4that the Attorney General’s office, the city attorney’s office, or the
5local district attorney’s office seek any available criminal, civil,
6or administrative remedy, including, but not limited to, injunctive
7relief, restitution, and damages in the same manner as provided
8for in Chapter 5 (commencing with Section 17200) of Part 2 of
9Division 7 of the Business and Professions Code.
10(n) The department may use funds from the emergency resident
11contingency account pursuant to Section 1569.48 when needed to
12supplement the operation of the facility or the transfer of residents
13under the control of the temporary manager appointed under this
14section if facility revenues are unavailable or exhausted when
15needed. Pursuant to subdivision (l), the licensee shall be
required
16to reimburse the department for any funds used from the emergency
17resident contingency account during the period of control of the
18temporary manager and any incurred costs of collection.
19(o) This section does not apply to a residential care facility for
20the elderly that serves six or fewer persons and is also the principal
21residence of the licensee.
22(p) Notwithstanding any other provision of law, the temporary
23manager shall be liable only for damages resulting from gross
24negligence in the operation of the facility or intentional tortious
25acts.
26(q) All governmental immunities otherwise applicable to the
27state shall also apply to the state in the use of a temporary manager
28in the operation of a facility pursuant to this section.
29(r) A licenseebegin delete shallend deletebegin insert
isend insert notbegin delete beend delete liable for any occurrences during
30the temporary management under this section except to the extent
31that the occurrences are the result of the licensee’s conduct.
32(s) The department may adopt regulations for the administration
33of this section.
Section 1569.482 of the Health and Safety Code is
35amended to read:
(a) It is the intent of the Legislature in enacting this
37section to authorize the department to take quick, effective action
38to protect the health and safety of residents of residential care
39facilities for the elderly and to minimize the effects of transfer
40trauma that accompany the abrupt transfer of residents through a
P392 1system whereby the department may apply for a court order
2appointing a receiver to temporarily operate a residential care
3facility for the elderly. The receivership is not intended to punish
4a licensee or to replace attempts to secure cooperative action to
5protect the residents’ health and safety. The receivership is intended
6to protect the residents in the absence of other reasonably available
7alternatives. The receiver shall assume the operation of the facility
8in order to bring it into compliance with law,
facilitate a transfer
9of ownership to a new licensee, or ensure the orderly transfer of
10residents should the facility be required to close.
11(b) (1) Whenever circumstances exist indicating that continued
12management of a residential care facility by the current licensee
13would present a substantial probability or imminent danger of
14serious physical harm or death to the residents, or the facility is
15closing or intends to terminate operation as a residential care
16facility for the elderly and adequate arrangements forbegin insert theend insert relocation
17of residents have not been made at least 30 days prior to the closing
18or termination, the director may petition the superior court for the
19county in which the facility is located for an order appointing a
20receiver to temporarily operate the facility in accordance with this
21section.
22(2) The petition shall allege the facts upon which the action is
23based and shall be supported by an affidavit of the director. A copy
24of the petition andbegin delete affidavits,end deletebegin insert affidavitend insert together with an order to
25appear and show cause why temporary authority to operate the
26residential care facility for the elderly should not be vested in a
27receiver pursuant to this section, shall be delivered to the licensee,
28administrator, or a responsible person at the facility to the attention
29of the licensee and administrator. The order shall specify a hearing
30date, which shall be not less than 10, nor more than 15, days
31following delivery of the petition and order upon the licensee,
32except that the court may shorten or lengthen the time upon a
33showing of just cause.
34(c) (1) If the director files a petition pursuant to subdivision (b)
35for appointment of a receiver to operate a residential care facility
36for the elderly, in accordance with Section 564 of the Code of Civil
37Procedure, the director may also petition the court, in accordance
38with Section 527 of the Code of Civil Procedure, for an order
39appointing a temporary receiver. A temporary receiver appointed
40by the court pursuant to this subdivision shall serve until the court
P393 1has made a final determination on the petition for appointment of
2a receiver filed pursuant to subdivision (b). A receiver appointed
3pursuant to this subdivision shall have the same powers and duties
4as a receiver would have if appointed pursuant to subdivision (b).
5Upon the director filing a petition for a receiver, the receiver shall
6complete its application for a provisional license to operate a
7residential care facility for the elderly. For purposes of a
8
provisional license issued to a receiver, the licensee’s existing fire
9safety clearance shall serve as the fire safety clearance for the
10receiver’s provisional license.
11(2) At the time of the hearing, the department shall advise the
12licensee of the name of the proposed receiver. The receiver shall
13be a certified residential care facility for the elderly administrator
14or other responsible person or entity, as determined by the court,
15from a list of qualified receivers established by the department,
16and, if need be, with input from providers of residential care and
17consumer representatives. Persons appearing on the list shall have
18experience in the delivery of care services to clients of community
19care facilities, and, if feasible, shall have experience with the
20operation of a residential care facility for the elderly, shall not be
21the subject of any pending actions by the department or any other
22state agency, and shall not have ever been
excluded from a
23department licensed facility nor have had a license or certification
24suspended or revoked by an administrative action by the
25department or any other state agency. The receivers shall have
26sufficient background and experience in management and finances
27to ensure compliance with orders issued by the court. The owner,
28licensee, or administrator shall not be appointed as the receiver
29unless authorized by the court.
30(3) If at the conclusion of the hearing, which may include oral
31testimony and cross-examination at the option of any party, the
32court determines that adequate grounds exist for the appointment
33of a receiver and that there is no other reasonably available remedy
34to protect the residents, the court may issue an order appointing a
35receiver to temporarily operate the residential care facility for the
36elderly and enjoining the licensee from interfering with the receiver
37in the conduct of his or her duties. In these
proceedings, the court
38shall make written findings of fact and conclusions of law and
39shall require an appropriate bond to be filed by the receiver and
40paid for by the licensee. The bond shall be in an amount necessary
P394 1to protect the licensee in the event of any failure on the part of the
2receiver to act in a reasonable manner. The bond requirement may
3be waived by the licensee.
4(4) The court may permit the licensee to participate in the
5continued operation of the facility during the pendency of any
6receivership ordered pursuant to this section and shall issue an
7order detailing the nature and scope of participation.
8(5) Failure of the licensee to appear at the hearing on the petition
9shall constitute an admission of all factual allegations contained
10in the petition for purposes of these proceedings only.
11(6) The
licensee shall receive notice and a copy of the
12application each time the receiver applies to the court or the
13department for instructions regarding his or her duties under this
14section, when an accounting pursuant to subdivision (i) is
15submitted, and when any other report otherwise required under
16this section is submitted. The licensee shall have an opportunity
17to present objections or otherwise participate in those proceedings.
18(d) A person shall not impede the operation of a receivership
19created under this section. The receiver’s access to, or possession
20of, the property shall not be interfered with during the term of the
21receivership. There shall be an automatic stay for a 60-day period
22subsequent to the appointment of a receiver of any action that
23would interfere with the functioning of the facility, including, but
24not limited to, cancellation of insurance policies executed by the
25licensees, termination of utility services, attachments, or
setoffs
26of resident trust funds and working capital accounts and
27repossession of equipment in the facility.
28(e) When a receiver is appointed, the licensee may, at the
29discretion of the court, be divested of possession and control of
30the facility in favor of the receiver. If the court divests the licensee
31of possession and control of the facility in favor of the receiver,
32the department shall immediately issue a provisional license to the
33receiver. Notwithstanding the applicable sections of this code
34governing the revocation of a provisional license, the provisional
35license issued to a receiver shall automatically expire upon the
36termination of the receivership. The receiver shall possess the
37provisional license solely for purposes of carrying out the
38responsibilities authorized by this section and the duties ordered
39by the court. The receiver shall have no right to appeal the
40expiration of the provisional license.
P395 1(f) A receiver appointed pursuant to this section:
2(1) May exercise those powers and shall perform those duties
3ordered by the court, in addition to other duties provided by statute.
4(2) Shall operate the facility in a manner that ensures the safety
5and adequate care for the residents.
6(3) Shall have the same rights to possession of the building in
7which the facility is located, and of all goods and fixtures in the
8building at the time the petition for receivership is filed, as the
9licensee and administrator would have had if the receiver had not
10been appointed.
11(4) May use the funds, building, fixtures, furnishings, and any
12accompanying consumable goods in the provision of care and
13services
to residents and to any other persons receiving services
14from the facility at the time the petition for receivership was filed.
15(5) Shall take title to all revenue coming to the facility in the
16name of the receiver who shall use it for the following purposes
17in descending order of priority:
18(A) To pay wages to staff. The receiver shall have full power
19to hire, direct, manage, and discharge employees of the facility,
20subject to any contractual rights they may have. The receiver shall
21pay employees at the same rate of compensation, including
22benefits, that the employees would have received from the licensee
23or wages necessary to provide adequate staff for the protection of
24the clients and compliance with the law.
25(B) To preserve resident funds. The receiver shall be entitled
26to, and shall take, possession of all
property or assets of residents
27that are in the possession of the licensee or operator of the facility.
28The receiver shall preserve all property, assets, and records of
29residents of which the receiver takes possession.
30(C) To contract for outside services as may be needed for the
31operation of the residential care facility for the elderly.begin delete Anyend deletebegin insert Aend insert
32 contract for outside services in excess of five thousand dollars
33($5,000) shall be approved by the court.
34(D) To pay commercial creditors of the facility to the extent
35required to operate the facility. Except as provided in subdivision
36(h), the receiver shall honor all leases, mortgages, and secured
37transactions affecting the building in which the
facility is located
38and all goods and fixtures in the building of which the receiver
39has taken possession, but only to the extent of payments which,
40in the case of a rental agreement, are for the use of the property
P396 1during the period of receivership, or which, in the case of a
2purchase agreement, come due during the period of receivership.
3(E) To receive a salary, as approved by the court.
4(F) To do all things necessary and proper to maintain and operate
5the facility in accordance with sound fiscal policies. The receiver
6shall take action as is reasonably necessary to protect or conserve
7the assets or property of which the receiver takes possession and
8may use those assets or property only in the performance of the
9powers and duties set out in this section and by order of the court.
10(G) To ask the court for direction
in the treatment of debts
11incurred prior to the appointment, if the licensee’s debts appear
12extraordinary, of questionable validity, or unrelated to the normal
13and expected maintenance and operation of the facility, or if
14payment of the debts will interfere with the purposes of
15receivership.
16(g) (1) A person who is served with notice of an order of the
17court appointing a receiver and of the receiver’s name and address
18shall be liable to pay the receiver, rather than the licensee, for any
19goods or services provided by the residential care facility for the
20elderly after the date of the order. The receiver shall give a receipt
21for each payment and shall keep a copy of each receipt on file.
22The receiver shall deposit amounts received in a special account
23and shall use this account for all disbursements. Payment to the
24receiver pursuant to this subdivision shall discharge the obligation
25to the extent of the payment and shall
not thereafter be the basis
26of a claim by the licensee or any other person. A resident shall not
27be evicted nor may any contract or rights be forfeited or impaired,
28nor may any forfeiture be effected or liability increased, by reason
29of an omission to pay the licensee, operator, or other person a sum
30paid to the receiver pursuant to this subdivision.
31(2) This section shall not be construed to suspend, during the
32temporary management by the receiver, any obligation of the
33licensee for payment of local, state, or federal taxes. A licensee
34shall not be held liable for acts or omissions of the receiver during
35the term of the temporary management.
36(3) Upon petition of the receiver, the court may order immediate
37payment to the receiver for past services that have been rendered
38and billed, and the court may also order a sum not to exceed one
39month’s advance payment to the receiver of any
sums that may
40become payable under the Medi-Cal program.
P397 1(h) (1) A receiver shall not be required to honor a lease,
2mortgage, or secured transaction entered into by the licensee of
3the facility and another party if the court finds that the agreement
4between the parties was entered into for a collusive, fraudulent
5purpose or that the agreement is unrelated to the operation of the
6facility.
7(2) A lease, mortgage, or secured transaction or an agreement
8unrelated to the operation of the facility that the receiver is
9permitted to dishonor pursuant to this subdivision shall only be
10subject to nonpayment by the receiver for the duration of the
11receivership, and the dishonoring of the lease, mortgage, security
12interest, or other agreement, to this extent, by the receiver shall
13not relieve the owner or operator of the facility from any liability
14for the full amount
due under the lease, mortgage, security interest,
15or other agreement.
16(3) If the receiver is in possession of real estate or goods subject
17to a lease, mortgage, or security interest that the receiver is
18permitted tobegin delete avoidend deletebegin insert
dishonorend insert pursuant to paragraph (1), and if the
19real estate or goods are necessary for the continued operation of
20the facility, the receiver may apply to the court to set a reasonable
21rent, price, or rate of interest to be paid by the receiver during the
22duration of the receivership. The court shall hold a hearing on this
23application within 15 days. The receiver shall send notice of the
24application to any known owner of the property involved at least
2510 days prior to the hearing.
26(4) Payment by the receiver of the amount determined by the
27court to be reasonable is a defense to any action against the receiver
28for payment or possession of the goods or real estate, subject to
29the lease or mortgage, which is brought by any person who received
30the notice required by this subdivision. However, payment by the
31receiver of the amount determined by the court to be reasonable
32begin delete shallend deletebegin insert
doesend insert not relieve the owner or operator of the facility from
33any liability for the difference between the amount paid by the
34receiver and the amount due under the original lease, mortgage,
35or security interest.
36(i) A monthly accounting shall be made by the receiver to the
37department of all moneys received and expended by the receiver
38on or before the 15th day of the following month or as ordered by
39the court, and the remainder of income over expenses for that
40month shall be returned to the licensee. A copy of the accounting
P398 1shall be provided to the licensee. The licensee or owner of the
2residential care facility for the elderly may petition the court for
3a determination as to the reasonableness of any expenditure made
4pursuant to paragraph (5) of subdivision (f).
5(j) (1) The receiver shall be appointed for an initial
period of
6not more than three months. The initial three-month period may
7be extended for additional periods not exceeding three months, as
8determined by the court pursuant to this section. At the end of one
9month, the receiver shall report to the court on its assessment of
10the probability that the residential care facility for the elderly will
11meet state standards for operation by the end of the initial
12three-month period and will continue to maintain compliance with
13those standards after termination of the receiver’s management.
14If it appears that the facility cannot be brought into compliance
15with state standards within the initial three-month period, the court
16shall take appropriate action as follows:
17(A) Extend the receiver’s management for an additional three
18months if there is a substantial likelihood that the facility will meet
19state standards within that period and will maintain compliance
20with the standards after termination of the
receiver’s management.
21The receiver shall report to the court in writing upon the facility’s
22progress at the end of six weeks of any extension ordered pursuant
23to this paragraph.
24(B) Order the director to revoke or temporarily suspend, or both,
25the license pursuant to Section 1569.50 and extend the receiver’s
26management for the period necessary to transfer clients in
27accordance with the transfer plan, but for not more than three
28months from the date of initial appointment of a receiver, or 14
29days, whichever is greater. An extension of an additional three
30months may be granted if deemed necessary by the court.
31(2) If it appears at the end of six weeks of an extension ordered
32pursuant to subparagraph (A) of paragraph (1) that the facility
33cannot be brought into compliance with state standards for
34operation or that it will not maintain compliance with those
35standards after the
receiver’s management is terminated, the court
36shall take appropriate action as specified in subparagraph (B) of
37paragraph (1).
38(3) In evaluating the probability that a residential care facility
39for the elderly will maintain compliance with state standards of
P399 1operation after the termination of receiver management ordered
2by the court, the court shall consider at least the following factors:
3(A) The duration, frequency, and severity of past violations in
4the facility.
5(B) History of compliance in other care facilities operated by
6the proposed licensee.
7(C) Efforts by the licensee to prevent and correct past violations.
8(D) The financial ability of the licensee to operate in compliance
9with
state standards.
10(E) The recommendations and reports of the receiver.
11(4) Management of a residential care facility for the elderly
12operated by a receiver pursuant to this section shall not be returned
13to the licensee, to any person related to the licensee, or to any
14person who served as a member of the facility’s staff or who was
15employed by the licensee prior to the appointment of the receiver
16unless both of the following conditions are met:
17(A) The department believes that it would be in the best interests
18of the residents of the facility, requests that the court return the
19operation of the facility to the former licensee, and provides clear
20and convincing evidence to the court that it is in the best interests
21of the facility’s residents to take that action.
22(B) The court finds that the licensee has fully cooperated with
23the department in the appointment and ongoing activities of a
24receiver appointed pursuant to this section, and, if applicable, any
25temporary manager appointed pursuant to Section 1569.481.
26(5) The owner of the facility may at any time sell, lease, or close
27the facility, subject to the following provisions:
28(A) If the owner closes the facility, or the sale or lease results
29in the closure of the facility, the court shall determine if a transfer
30plan is necessary. If the court so determines, the court shall adopt
31and implement a transfer plan consistent with the provisions of
32Section 1569.682.
33(B) If the licensee proposes to sell or lease the facility and the
34facility will continue to operate as a residential care facility for
35the elderly, the
court and the department shall reevaluate any
36proposed transfer plan. If the court and the department determine
37that the sale or lease of the facility will result in compliance with
38licensing standards, the transfer plan and the receivership shall,
39subject to those conditions that the court may impose and enforce,
40be terminated upon the effective date of the sale or lease.
P400 1(k) (1) The salary of the receiver shall be set by the court
2commensurate with community care facility industry standards,
3giving due consideration to the difficulty of the duties undertaken,
4and shall be paid from the revenue coming to the facility. If the
5revenue is insufficient to pay the salary in addition to other
6expenses of operating the facility, the receiver’s salary shall be
7paid from the emergency resident contingency account as provided
8in Section 1569.48. State advances of funds in excess of five
9thousand dollars ($5,000) shall be approved
by the director. Total
10advances for encumbrances and expenditures shall not exceed the
11sum of forty-nine thousand nine hundred ninety-nine dollars
12($49,999) unless approved by the director in writing.
13(2) To the extent state funds are advanced for the salary of the
14receiver or for other expenses in connection with the receivership,
15as limited by subdivision (g), the state shall be reimbursed from
16the revenues accruing to the facility or to the licensee or an entity
17related to the licensee.begin delete Any reimbursementend deletebegin insert Reimbursementend insert received
18by the state shall be redeposited in the account from which the
19state funds were advanced. If the revenues are insufficient to
20reimburse the state, the unreimbursed amount shall constitute
21grounds for a monetary judgment in civil
court and a subsequent
22lien upon the assets of the facility or the proceeds from the sale
23thereof. Pursuant to Chapter 2 (commencing with Sectionbegin delete 697.510)end delete
24begin insert
697.010)end insert of Division 2 of Title 9 of Part 2 of the Code of Civil
25Procedure, a lien against the personal assets of the facility or an
26entity related to the licensee based on the monetary judgment
27obtained shall be filed with the Secretary of State on the forms
28required for a notice of judgment lien. A lien against the real
29property of the facility or an entity related to the licensee based
30on the monetary judgment obtained shall be recorded with the
31county recorder of the county where the facility of the licensee is
32located or where the real property of the entity related to the
33licensee is located. The lien shall not attach to the interests of a
34lessor, unless the lessor is operating the facility. The authority to
35place a lien against the personal and real property of the licensee
36for the reimbursement of any state funds expended pursuant to this
37section shall be given judgment creditor priority.
38(3) For
purposes of this subdivision, “entity related to the
39licensee” means an entity, other than a natural person, of which
40the licensee is a subsidiary or an entity in which any person who
P401 1was obligated to disclose information under Section 1569.15
2possesses an interest that would also require disclosure pursuant
3to Section 1569.15.
4(l) (1) This section does not impair the right of the owner of a
5residential care facility for the elderly to dispose of his or her
6property interests in the facility, but any facility operated by a
7receiver pursuant to this section shall remain subject to that
8administration until terminated by the court. The termination shall
9be promptly effectuated, provided that the interests of the residents
10have been safeguarded as determined by the court.
11(2) This section does not limit the power of the court to appoint
12a receiver under any
other applicable provision of law or to order
13any other remedy available under law.
14(m) (1) Notwithstanding any other provision of law, the receiver
15shall be liable only for damages resulting from gross negligence
16in the operation of the facility or intentional tortious acts.
17(2) All governmental immunities otherwise applicable to the
18State of California shall also apply in the use of a receiver in the
19operation of a facility pursuant to this section.
20(3) The licenseebegin delete shallend deletebegin insert isend insert notbegin delete beend delete liable for any occurrences during
21the
receivership except to the extent that the occurrences are the
22result of the licensee’s conduct.
23(n) The department may adopt regulations for the administration
24of this section. This section does not impair the authority of the
25department to temporarily suspend licenses under Section 1569.50
26or to reach a voluntary agreement with the licensee for alternate
27management of a community care facility including the use of a
28temporary manager under Section 1569.481. This section does not
29authorize the department to interfere in a labor dispute.
30(o) This section does not apply to a residential care facility for
31the elderly that serves six or fewer persons and is also the principal
32residence of the licensee.
33(p) This section does not apply to a licensee that has obtained
34a certificate of authority to offer continuing care
contracts, as
35defined in paragraph (8) of subdivision (c) of Section 1771.
Section 1569.525 of the Health and Safety Code is
37amended to read:
(a) If the director determines that it is necessary to
39temporarily suspend or to revoke any license of a residential care
40facility for the elderly in order to protect the residents or clients
P402 1of the facility from physical or mental abuse, abandonment, or any
2other substantial threat to health or safety pursuant to Section
31569.50, the department shall make every effort to minimize
4trauma for the residents.
5(b) (1) (A) After a decision is made to temporarily suspend or,
6upon an order, to revoke the license of a residential care facility
7for the elderly which is likely to result in closure of the facility,
8the department shall contact both of the following:
9(i) The Office of the State Long-Term Care Ombudsman.
10(ii) Any local agency that may have placement or advocacy
11responsibility for the residents of a residential care facility for the
12elderly.
13(B) The department shall work with these agencies, and the
14licensee if the director determines it to be appropriate, to locate
15alternative placement sites and to contact relatives or other persons
16responsible for the care of these residents, and to assist in the
17transfer of residents.
18(2) The department shall use appropriately skilled professionals
19deemed appropriate by the department to provide onsite evaluation
20of the residents and assist in any transfers.
21(3) The department shall require the licensee to prepare and
22submit to the licensing agency a
written plan for relocation and
23compliance with the terms and conditions of the approved plans,
24and to provide other information as necessary for the enforcement
25of this section.
26(c) Upon receipt of an order to temporarily suspend or revoke
27a license, the licensee shall be prohibited from accepting new
28residents or entering into admission agreements for new residents.
29(d) Upon an order to temporarily suspend a license, the
30following shall apply:
31(1) The licensee shall immediately provide written notice of the
32temporary suspension to the resident and initiate contact with the
33resident’s responsible person, if applicable.
34(2) The department may secure, or permit the licensee to secure,
35the services of a temporary manager who is not an immediate
36 family
member of the licensee or an entity that is not owned by
37the licensee to manage the day-to-day operations of the facility.
38The temporary manager shall be appointed and assume operation
39of the facility in accordance with Section 1569.481.
P403 1(e) Upon an order to revoke a license following the temporary
2suspension of a license pursuant to Section 1569.50 that led to the
3transfer of all residents, the followingbegin delete shall apply:end deletebegin insert applies:end insert
4(1) The licensee shall provide a 60-day written notice of license
5revocation that may lead to closure to the resident and the resident’s
6responsible person within 24 hours of receipt of the department’s
7order of revocation.
8(2) The department shall permit the licensee to secure the
9services of a temporary manager who is not an immediate family
10member of the licensee or an entity that is not owned by the
11licensee to manage the day-to-day operations of the residential
12care facility for the elderly for a period of at least 60 days, provided
13that all of the following conditions are met:
14(A) A proposal is submitted to the department within 72 hours
15of the licensee’s receipt of the department’s order of revocation
16that includes both of the following:
17(i) A completed “Application for a Community Care Facility
18or Residential Care Facility for the Elderly License” form (LIC
19200), or similar form as determined by the department, signed and
20dated by both the licensee and the person or entity described in
21paragraph (2).
22(ii) A copy of the executed agreement between the licensee and
23the person or entity described in paragraph (2) that delineates the
24roles and responsibilities of each party and specifies that the person
25or entity described in paragraph (2) shall have the full authority
26necessary to operate the facility, in compliance with all applicable
27laws and regulations, and without interference from the licensee.
28(B) The person or entity described in paragraph (2) shall be
29currently licensed and in substantial compliance to operate a
30residential care facility for the elderly that is of comparable size
31or greater and has comparable programming to the facility. For
32purposes of this subparagraph, the following definitions apply:
33(i) “Comparable programming” includes, but is not limited to,
34dementia care, hospice care, and care for
residents with exempted
35prohibited health care conditions.
36(ii) “Comparable size” means a facility capacity of 1 to 15
37residents, 16 to 49 residents, or 50 or more residents.
38(C) The person or entity described in paragraph (2)begin delete shallend deletebegin insert isend insert not
39begin delete beend delete subject to the application fee specified in Section 1569.185.
P404 1(D) If the department denies a proposal to secure the services
2of a person or entity pursuant to paragraph (2), this denial shall
3not be deemed a denial of a license application subject to the right
4to a hearing under Section 1569.22 and other
procedural rights
5under Section 1569.51.
6(f) (1) Notwithstanding Section 1569.651 or any other law, for
7paid preadmission fees, a resident who transfers from the facility
8due to the notice of temporary suspension or revocation of a license
9pursuant to this section is entitled to a refund in accordance with
10all of the following:
11(A) A 100-percent refund if preadmission fees were paid within
12six months of either notice of closure required by this section.
13(B) A 75-percent refund if preadmission fees were paid more
14than six months, but not more than 12 months, before either notice
15required by this section.
16(C) A 50-percent refund if preadmission fees were paid more
17than 12 months, but not more than 18 months, before either notice
18
required by this section.
19(D) A 25-percent refund if preadmission fees were paid more
20than 18 months, but not more than 25 months, before either notice
21required by this section.
22(2) begin deleteNo end deletebegin insertA end insertpreadmission fee refund isbegin insert notend insert required if preadmission
23fees were paid 25 months or more before either notice required by
24this section.
25(3) The preadmission fee refund required by this paragraph shall
26be paid within 15 days of issuing either notice required by this
27section. In lieu of the refund, the resident may request that the
28licensee
provide a credit toward the resident’s monthly fee
29obligation in an amount equal to the preadmission fee refund due.
30(4) If a resident transfers from the facility due to the revocation
31of a license, and the resident gives notice at least five days before
32leaving the facility, or if the transfer is due to a temporary
33suspension of the license order, the licensee shall refund to the
34resident or his or her legal representative a proportional per diem
35amount of any prepaid monthly fees at the time the resident leaves
36the facility and the unit is vacated. Otherwise the licensee shall
37pay the refund within seven days from the date that the resident
38leaves the facility and the unit is vacated.
39(g) Within 24 hours after eachbegin delete residenceend deletebegin insert
residentend insert who is
40transferring pursuant to these provisionsbegin delete haveend deletebegin insert hasend insert left the facility,
P405 1the licensee that had his or her license temporarily suspended or
2revoked shall, based on information provided by the resident or
3the resident’s responsible person, submit a final list of names and
4new locations of all residents to the department and the local
5ombudsman program.
6(h) If at any point during or following a temporary suspension
7or revocation order of a license the director determines that there
8is a risk to the residents of a facilitybegin delete fromend deletebegin insert ofend insert
physical or mental
9abuse, abandonment, or any other substantial threat to health or
10safety, the department shall take any necessary action to minimize
11trauma for the residents, including, but not limited to, all of the
12following:
13(1) Contact any local agency that may have placement or
14advocacy responsibility for the residents and work with those
15agencies to locate alternative placement sites.
16(2) Contact the residents’ relatives, legal representatives,
17authorized agents in a health care directive, or responsible parties.
18(3) Assist in the transfer of residents, and, if necessary, arrange
19or coordinate transportation.
20(4) Provide onsite evaluation of the residents and use any
21medical personnel deemed appropriate by the department to provide
22
onsite evaluation of the residents and assist in any transfers.
23(5) Arrange for or coordinate care and supervision.
24(6) Arrange for the distribution of medications.
25(7) Arrange for the preparation and service of meals and snacks.
26(8) Arrange for the preparation of the residents’ records and
27medications for transfer of each resident.
28(9) Assist in any way necessary to facilitate a safe transfer of
29all residents.
30(10) Check on the status of each transferred resident within 24
31hours of transfer.
32(i) The participation of the department and local agencies in the
33
relocation of residents from a residential care facility for the elderly
34shall not relieve the licensee of any responsibility under this
35section. A licensee that fails to comply with the requirements of
36this section shall be required to reimburse the department and local
37agencies for the cost of providing those services. If the licensee
38fails to provide the services required in this section, the department
39shall request that the Attorney General’s office, the city attorney’s
P406 1office, or the local district attorney’s office seek injunctive relief
2and damages.
3(j) Notwithstanding Section 1569.49, a licensee who fails to
4comply with the requirements of this section shall be liable for
5civil penalties in the amount of five hundred dollars ($500) per
6violation per day for each day that the licensee is in violation of
7this section, until the violation has been corrected. The civil
8penalties shall be issued immediately following the written notice
9of
violation.
10(k) This sectionbegin delete shallend deletebegin insert doesend insert not preclude the department from
11amending the effective date in the order of suspension or revocation
12of a license and closing the facility, or from pursuing any other
13available remedies if necessary to protect the health and safety of
14the residents in care.
Section 1569.682 of the Health and Safety Code is
16amended to read:
(a) A licensee of a licensed residential care facility
18for the elderly shall, prior to transferring a resident of the facility
19to another facility or to an independent living arrangement as a
20result of the forfeiture of a license, as described in subdivision (a),
21(b), or (f) of Section 1569.19, or a change of use of the facility
22pursuant to the department’s regulations, take all reasonable steps
23to transfer affected residents safely and to minimize possible
24transfer trauma, and shall, at a minimum, do all of the following:
25(1) Prepare, for each resident, a relocation evaluation of the
26needs of that resident, which shall include both of the following:
27(A) Recommendations on the type of facility that
would meet
28the needs of the resident based on the current service plan.
29(B) A list of facilities, within a 60-mile radius of the resident’s
30current facility, that meet the resident’s present needs.
31(2) Provide each resident or the resident’s responsible person
32with a written notice no later than 60 days before the intended
33eviction. The notice shall include all of the following:
34(A) The reason for the eviction, with specific facts to permit a
35determination of the date, place, witnesses, and circumstances
36concerning the reasons.
37(B) A copy of the resident’s current service plan.
38(C) The relocation evaluation.
39(D) A list of referral agencies.
P407 1(E) The right of the resident or resident’s legal representative
2to contact the department to investigate the reasons given for the
3eviction pursuant to Section 1569.35.
4(F) The contact information for the local long-term care
5ombudsman, including address and telephone number.
6(3) Discuss the relocation evaluation with the resident and his
7or her legal representative within 30 days of issuing the notice of
8eviction.
9(4) Submit a written report of any eviction to the licensing
10agency within five days.
11(5) Upon issuing the written notice of eviction, a licensee shall
12not accept new residents or enter into new admission agreements.
13(6) (A) For paid preadmission fees in excess of five hundred
14dollars ($500), the resident is entitled to a refund in accordance
15with all of the following:
16(i) A 100-percent refund if preadmission fees were paid within
17six months of notice of eviction.
18(ii) A 75-percent refund if preadmission fees were paid more
19than six months but not more than 12 months before notice of
20eviction.
21(iii) A 50-percent refund if preadmission fees were paid more
22than 12 months but not more than 18 months before notice of
23eviction.
24(iv) A 25-percent refund if preadmission fees were paid more
25than 18 months but less than 25 months before notice of eviction.
26(B) No preadmission refund is required if preadmission fees
27were paid 25 months or more before the notice of eviction.
28(C) The preadmission refund required by this paragraph shall
29be paid within 15 days of issuing the eviction notice. In lieu of the
30refund, the resident may request that the licensee provide a credit
31toward the resident’s monthly fee obligation in an amount equal
32to the preadmission fee refund due.
33(7) If the resident gives notice five days before leaving the
34facility, the licensee shall refund to the resident or his or her legal
35representative a proportional per diem amount of any prepaid
36monthly fees at the time the resident leaves the facility and the
37unit is vacated. Otherwise the licensee shall pay the refund within
38seven days from the date that the resident leaves the facility and
39the unit is
vacated.
P408 1(8) Within 10 days of all residents having left the facility, the
2licensee, based on information provided by the resident or
3resident’s legal representative, shall submit a final list of names
4and new locations of all residents to the department and the local
5ombudsman program.
6(b) If seven or more residents of a residential care facility for
7the elderly will be transferred as a result of the forfeiture of a
8license or change in the use of the facility pursuant to subdivision
9(a), the licensee shall submit a proposed closure plan to the
10department for approval. The department shall approve or
11disapprove the closure plan, and monitor its implementation, in
12accordance with the following requirements:
13(1) Upon submission of the closure plan, the licensee shall be
14prohibited from accepting new residents and
entering into new
15admission agreements for new residents.
16(2) The closure plan shall meet the requirements described in
17subdivision (a), and describe the staff available to assist in the
18transfers. The department’s review shall include a determination
19as to whether the licensee’s closure plan contains a relocation
20evaluation for each resident.
21(3) Within 15 working days of receipt, the department shall
22approve or disapprove the closure plan prepared pursuant to this
23subdivision, and, if the department approves the plan, it shall
24become effective upon the date the department grants its written
25approval of the plan.
26(4) If the department disapproves a closure plan, the licensee
27may resubmit an amended plan, which the department shall
28promptly either approve or disapprove, within 10 working days
29of receipt by the
department of the amended plan. If the department
30fails to approve a closure plan, it shall inform the licensee, in
31writing, of the reasons for the disapproval of the plan.
32(5) If the department fails to take action within 20 working days
33of receipt of either the original or the amended closure plan, the
34plan, or amended plan, as the case may be, shall be deemed
35approved.
36(6) Untilbegin delete such time thatend delete the department has approved a licensee’s
37closure plan, the facility shall not issue a notice of transfer or
38require any resident to transfer.
39(7) Upon approval by the department, the licensee shall send a
40copy of the closure plan to the local ombudsman program.
P409 1(c) (1) If a licensee fails to comply with the requirements of
2this section, or if the director determines that it is necessary to
3protect the residents of a facility from physical or mental abuse,
4abandonment, or any other substantial threat to health or safety,
5the department shall take any necessary action to minimize trauma
6for the residents, including caring for the residents through the use
7of a temporary manager or receiver as provided for in Sections
81569.481 and 1569.482 when the director determines the immediate
9relocation of the residents is not feasible based on transfer trauma
10or other considerations such as the unavailability of alternative
11placements. The department shall contact any local agency that
12may have assessmentbegin insert,end insert placement, protective, or advocacy
13responsibility for the residents, and shall work together with those
14agencies to locate alternative placement sites, contact
relatives or
15other persons responsible for the care of these residents, provide
16onsite evaluation of the residents, and assist in the transfer of
17residents.
18(2) The participation of the department and local agencies in
19the relocation of residents from a residential care facility for the
20elderlybegin delete shallend deletebegin insert doesend insert not relieve the licensee of any responsibility
21under this section. A licensee that fails to comply with the
22requirements of this section shall be required to reimburse the
23department and local agencies for the cost of providing the
24relocation services or the costs incurred in caring for the residents
25through the use of a temporary manager or receiver as provided
26for in Sections 1569.481 and 1569.482. If the licensee fails to
27provide the relocation
services required in this section, then the
28department may request that the Attorney General’s office, the
29city attorney’s office, or the local district attorney’s office seek
30injunctive relief and damages in the same manner as provided for
31in Chapter 5 (commencing with Section 17200) of Part 2 of
32Division 7 of the Business and Professions Code, including
33restitution to the department of any costs incurred in caring for the
34residents through the use of a temporary manager or receiver as
35provided for in Sections 1569.481 and 1569.482.
36(d) A licensee who fails to comply with requirements of this
37section shall be liable for the imposition of civil penalties in the
38amount of one hundred dollars ($100) per violation per day for
39each day that the licensee is in violation of this section, until such
40time that the violation has been corrected. The civil penalties shall
P410 1be issued immediately following the written notice of violation.
2However, if the
violation does not present an immediate or
3substantial threat to the health or safety of residents and the licensee
4corrects the violation within three days after receiving the notice
5of violation, the licensee shall not be liable for payment of any
6civil penalties pursuant to this subdivision related to the corrected
7violation.
8(e) A licensee, on and after January 1, 2015, who fails to comply
9with this section and abandons the facility and the residents in care
10resulting in an immediate and substantial threat to the health and
11safety of the abandoned residents, in addition to forfeiture of the
12license pursuant to Section 1569.19, shall be excluded from
13licensure in facilities licensed by the department without the right
14to petition for reinstatement.
15(f) A resident of a residential care facility for the elderly covered
16under this section may bring a civil action against any
person, firm,
17partnership, or corporation who owns, operates, establishes,
18manages, conducts, or maintains a residential care facility for the
19elderly who violates the rights of a resident, as set forth in this
20section. Any person, firm, partnership, or corporation who owns,
21operates, establishes, manages, conducts, or maintains a residential
22care facility for the elderly who violates this section shall be
23responsible for the acts of the facility’s employees and shall be
24liable for costs and attorney’s fees. Any such residential care
25facility for the elderly may also be enjoined from permitting the
26violation to continue. The remedies specified in this sectionbegin delete shall begin insert areend insert in addition to any other remedy provided by law.
27beend delete
28(g) This sectionbegin delete shallend deletebegin insert
doesend insert not apply to a licensee that has
29obtained a certificate of authority to offer continuing care contracts,
30as defined in paragraph (8) of subdivision (c) of Section 1771.
Section 1597.58 of the Health and Safety Code, as
32added by Section 10 of Chapter 813 of the Statutes of 2014, is
33amended to read:
(a) In addition to the suspension, temporary
35suspension, or revocation of a license issued under this chapter,
36the department may levy a civil penalty.
37(b) The amount of the civil penalty shall not be less than
38twenty-five dollars ($25) nor more than fifty dollars ($50) per day
39for each violation of this chapter except where the nature or
40seriousness of the violation or the frequency of the violation
P411 1warrants a higher penalty or an immediate civil penalty assessment
2or both, as determined by the department. In no event shall a civil
3penalty assessment exceed one hundred fifty dollars ($150) per
4day per violation.
5(c) Notwithstanding Sections 1596.893a, 1596.893b, 1597.56,
6and 1597.62begin insert,end insert
the department shall assess an immediate civil penalty
7of one hundred fifty dollars ($150) per day per violation for any
8of the following serious violations:
9(1) Any violation that results in the injury, illness, or death of
10a child.
11(2) Absence of supervision, including, but not limited to, a child
12left unattended, a child left alone with a person under 18 years of
13age, and lack of supervision resulting in a child wandering away.
14(3) Accessible bodies of water.
15(4) Accessible firearms, ammunition, or both.
16(5) Refused entry to a facility or any part of a facility in violation
17of Sections 1596.852, 1596.853, 1597.55a, and 1597.55b.
18(6) The presence of an excluded person on the premises.
19(d) For a violation that the department determines resulted in
20the death of a child, the civil penalty shall be assessed as follows:
21(1) Five thousand dollars ($5,000) for a small family day care
22home, as described in Section 1597.44.
23(2) Seven thousand five hundred dollars ($7,500) for a large
24family day care home, as described in Section 1597.465.
25(e) (1) For a violation that the department determines constitutes
26physical abuse or resulted in serious injury, as defined in Section
271596.8865, to a child, the civil penalty shall be assessed as follows:
28(A) One thousand dollars ($1,000) for a small family day care
29home, as described in Section 1597.44.
30(B) Two thousand dollars ($2,000) for a large family day care
31home, as described in Section 1597.465.
32(2) For purposes of this subdivision, “physical abuse” includes
33physical injury inflicted upon a child by another person by other
34than accidental means, sexual abuse as defined in Section 11165.1
35of the Penal Code, neglect as defined in Section 11165.2 of the
36Penal Code, or unlawful corporal punishment or injury as defined
37in Section 11165.4 of the Penal Code when the person responsible
38for the child’s welfare is a licensee, administrator, or employee of
39any facility licensed to care for children, or an administrator or
P412 1employee of a public or private school or other institution or
2agency.
3(f) Prior to
the issuance of a citation imposing a civil penalty
4pursuant to subdivision (d) or (e), the decision shall be approved
5by the director.
6(g) Notwithstanding Sections 1596.893a, 1596.893b, 1597.56,
7and 1597.62, any family day care home that is cited for repeating
8the same violation of this chapter or Chapter 3.4 (commencing
9with Section 1596.70), within 12 months of the first violationbegin insert,end insert is
10subject to an immediate civil penalty assessment of up to one
11hundred fifty dollars ($150) and may be assessed up to fifty dollars
12($50) for each day the violation continues until the deficiency is
13corrected.
14(h) begin deleteAny end deletebegin insertA end insertfamily
day care home that is assessed a civil penalty
15under subdivision (g) that repeats the same violation of this chapter
16within 12 months of the violation subject to subdivision (g) shall
17be assessed an immediate assessment of up to one hundred fifty
18dollars ($150) and may be assessed up to one hundred fifty dollars
19($150) for each day the violation continues until the deficiency is
20corrected.
21(i) Notwithstanding any other law, revenues received by the
22state from the payment of civil penalties imposed on licensed
23family day care homes pursuant to this chapter or Chapter 3.4
24(commencing with Section 1596.70), shall be deposited in the
25Child Health and Safety Fund, created pursuant to Chapter 4.6
26(commencing with Section 18285) of Part 6 of Division 9 of the
27Welfare and Institutions Code, and shall be expended, upon
28appropriation by the Legislature, pursuant to subdivision (f) of
29Section 18285 of the Welfare and Institutions Code exclusively
30for the
technical assistance, orientation, training, and education of
31licensed family day care home providers, and to assist families
32with the identification, transportation, and enrollment of children
33to another family day care home when a family’s family day care
34home’s license is revoked or temporarily suspended.
35(j) (1) The department shall adopt regulations setting forth the
36appeal procedures for deficiencies.
37(2) A licenseebegin delete shall have the right toend deletebegin insert mayend insert submit to the
38department a written request for a formal review of a civil penalty
39assessed pursuant to subdivisions (d) and (e) within 10 days of
40receipt of the notice of a civil penalty assessment and shall provide
P413 1all
supporting documentation at that time. The review shall be
2conducted by a regional manager of the Community Care Licensing
3Division. If the regional manager determines that the civil penalty
4was not assessed in accordance with applicable statutes or
5regulations of the department, he or she may amend or dismiss the
6civil penalty. The licensee shall be notified in writing of the
7regional manager’s decision within 60 days of the request to review
8the assessment of the civil penalty.
9(3) The licensee may further appeal to the program administrator
10of the Community Care Licensing Division within 10 days of
11receipt of the notice of the regional manager’s decision and shall
12provide all supporting documentation at that time. If the program
13administrator determines that the civil penalty was not assessed
14in accordance with applicable statutes or regulations of the
15department, he or she may amend or dismiss the civil penalty. The
16licensee shall be
notified in writing of the program administrator’s
17decision within 60 days of the request to review the regional
18manager’s decision.
19(4) The licensee may further appeal to the deputy director of
20the Community Care Licensing Division within 10 days of receipt
21of the notice of the program director’s decision and shall provide
22all supporting documentation at that time. If the deputy director
23determines that the civil penalty was not assessed in accordance
24with applicable statutes or regulations of the department, he or she
25may amend or dismiss the civil penalty. The licensee shall be
26notified in writing of the deputy director’s decision within 60 days
27of the request to review the program administrator’s decision.
28(5) Upon exhausting the deputy director review, a licensee may
29appeal a civil penalty assessed pursuant to subdivision (d) or (e)
30to an administrative law judge. Proceedings
shall be conducted in
31accordance with Chapter 5 (commencing with Section 11500) of
32Part 1 of Division 3 of Title 2 of the Government Code, and the
33department shall have all the powers granted by those provisions.
34In all proceedings conducted in accordance with this section, the
35standard of proof shall be by a preponderance of the evidence.
36(6) If, in addition to an assessment of civil penalties, the
37department elects to file an administrative action to suspend or
38revoke the facility license that includes violations relating to the
39assessment of the civil penalties, the department review of the
P414 1pending appeal shall cease and the assessment of the civil penalties
2shall be heard as part of the administrative action process.
3(k) The department shall, by January 1, 2016, amend its
4regulations to reflect the changes to this section made by the act
5that added this subdivision.
6(l) This section shall become operative on July 1, 2015.
Section 1635.1 of the Health and Safety Code is
8amended to read:
(a) Except as provided in subdivision (b), every tissue
10bank operating in California on or after July 1, 1992, shall have a
11current and valid tissue bank license issued or renewed by the
12department pursuant to Section 1639.2 or 1639.3.
13(b) This chapterbegin delete shallend deletebegin insert doesend insert not apply to any of the following:
14(1) The collection, processing, storage, or distribution of human
15whole blood or its derivatives by blood banks licensed pursuant
16to Chapter 4 (commencing with Section 1600) or any person
17exempt from licensure under
that chapter.
18(2) The collection, processing, storage, or distribution of tissue
19for autopsy, biopsy, training, education, or for other medical or
20scientific research or investigation,begin delete whereend deletebegin insert
whenend insert transplantation of
21the tissue is not intended or reasonably foreseeable.
22(3) The collection of tissue by an individual physician and
23surgeon from his or her patient or the implantation of tissue by an
24individual physician and surgeon into his or her patient. This
25exemption shall not be interpreted to apply to any processing or
26storage of the tissue, except for the processing and storage of semen
27by an individual physician and surgeon when the semen was
28collected by that physician and surgeon from a semen donor or
29obtained by that physician and surgeon from a tissue bank licensed
30under this chapter.
31(4) The collection, processing, storage, or distribution of fetal
32tissue or tissue derived from a human embryo or fetus.
33(5) The collection, processing, storage, or distribution
by an
34organ procurement organization (OPO), as defined in Section
35485.302 of Title 42 of the Code of Federal Regulations, if the OPO,
36at the time of collection, processing, storage, and distribution of
37the organ, has been designated by the Secretary of Health and
38Human Services as an OPO, pursuant to Section 485.305 of Title
3942 of the Code of Federal Regulations, and meets the requirements
P415 1of Sections 485.304 and 485.306 of Title 42 of the Code of Federal
2Regulations, as applicable.
3(6) The storage of prepackaged, freeze-dried bone by a general
4acute care hospital.
5(7) The storage of freeze-dried bone and dermis by any licensed
6dentist practicing in a lawful practice setting,begin delete providingend deletebegin insert ifend insert
that the
7freeze-dried bone and dermis has been obtained from a licensed
8tissuebegin delete bank andend deletebegin insert
bank,end insert is stored in strict accordance with a kit’s
9package insert and any other manufacturer instructions and
10begin delete guidelinesend deletebegin insert guidelines,end insert and is used for the express purpose of
11implantation into a patient.
12(8) The storage of a human cell, tissue, or cellular- or
13tissue-based product, as defined by the federal Food and Drug
14Administration, that is either a medical device approved pursuant
15to Section 510 or 515 of the Federal Food, Drug, and Cosmetic
16Act (21 U.S.C. Sec. 360,, 360e) or that is a biologic product
17approved under Section 351 of the federal Public Health Service
18Act (42 U.S.C. Sec. 262) by a licensed physician or podiatrist
19acting within the scope and authority of his or her license and
20practicing in a lawful
practice setting. The medical device or
21biologic product must have been obtained from a California
22licensed tissue bank, been stored in strict accordance with the
23device’s or product’s package insert and any other manufacturer
24instructions, and used solely for the express purpose of direct
25implantation into or application on the practitioner’s own patient.
26In order to be eligible for the exemption in this paragraph, the
27entity or organization where the physician or podiatrist who is
28eligible for the exemption is practicing shall notify the department,
29in writing, that the practitioner is licensed and meets the
30requirements of this paragraph. The notification shall include all
31of the following:
32(A) A list of all practitioners to whom the notice applies.
33(B) Acknowledgment that each listed practitioner uses the
34medical device or biologic product in the scope and authority of
35his or
her license and practice for the purposes of direct patient
36care as described in this paragraph.
37(C) A statement that each listed practitioner agrees to strictly
38abide by the directions for storage in the device’s or product’s
39package insert and any other manufacturer instructions and
40guidelines.
P416 1(D) Acknowledgment by each practitioner that the medical
2device or biologic product shall not be resold or distributed.
Section 1796.17 of the Health and Safety Code is
4amended to read:
(a) Each home care organization shall be separately
6licensed.begin delete Nothing in thisend deletebegin insert Thisend insert chapterbegin delete shallend deletebegin insert does notend insert prevent a
7licensee from obtaining more than one home care organization
8license or obtaining a home care organization license in addition
9to other licenses issued by the department, or both.
10(b) A home care organizationbegin delete shallend deletebegin insert
doesend insert not include the
11following:
12(1) A home health agency licensed under Chapter 8
13(commencing with Section 1725).
14(2) A hospice licensed under Chapter 8.5 (commencing with
15Section 1745).
16(3) A health facility licensed under Chapter 2 (commencing
17with Section 1250).
18(4) A person who performs services through the In-Home
19Supportive Services program pursuant to Article 7 (commencing
20with Section 12300) of Chapter 3 of Part 3 of Division 9 of, or
21Section 14132.95, 14132.952, or 14132.956 of, the Welfare and
22Institutions Code.
23(5) A home medical device retail facility licensed under Section
24111656.
25(6) An organization vendored or contracted through a regional
26center or the State Department of Developmental Services pursuant
27to the Lanterman Developmental Disabilities Services Act
28(Division 4.5 (commencing with Section 4500) of the Welfare and
29Institutions Code) and the California Early Intervention Services
30Act (Title 14 (commencing with Section 95000) of the Government
31Code) to provide services and supports for persons with
32developmental disabilities, as defined in Section 4512 of the
33Welfare and Institutions Code, when funding for those services is
34provided through the State Department of Developmental Services
35and more than 50 percent of the recipients of the home care services
36provided by the organization are persons with developmental
37disabilities.
38(7) An employment agency, as defined in Section 1812.5095
39of the Civil Code, that procures, offers, refers, provides, or attempts
P417 1to provide an independent home care aide who
provides home care
2servicesbegin insert
toend insert clients.
3(8) A community care facility licensed pursuant to Chapter 3
4(commencing with Section 1500), a residential care facility for
5persons with chronic life-threatening illness licensed pursuant to
6Chapter 3.01 (commencing with Section 1568.01), a residential
7care facility for the elderly licensed pursuant to Chapter 3.2
8(commencing with Section 1569), or a facility licensed pursuant
9to the California Child Day Care Facilities Act (Chapter 3.4
10(commencing with Section 1596.70)), which includes day care
11centers, as described in Chapter 3.5 (commencing with Section
121596.90), family day care homes, as described in Chapter 3.6
13(commencing with Section 1597.30), and employer-sponsored
14child care centers, as described in Chapter 3.65 (commencing with
15Section 1597.70).
16(9) An alcoholism or drug abuse recovery or treatment facility
17as defined
in Section 11834.02.
18(10) A person providing services authorized pursuant to Section
192731 of the Business and Professions Code.
20(11) A clinic licensed pursuant to Section 1204 or 1204.1.
21(12) A nonrelative extended family member, as defined in
22Section 362.7 of the Welfare and Institutions Code.
23(13) A facility providing home care services in which only
24Indian children who are eligible under the federal Indian Child
25Welfare Act (25 U.S.C. Sec. 1901 et seq.) are placed and which
26satisfies either of the following:
27(A) An extended family member of the Indian child, as defined
28in Section 1903 of Title 25 of the United States Code.
29(B) A foster home that is licensed, approved, or specified by
30the Indian child’s tribe pursuant to Section 1915 of Title 25 of the
31United States Code.
32(14) Any other individual or entity providing services similar
33to those described in this chapter, as determined by the director.
34(c) In the event of a conflict between this chapter and a provision
35listed in subdivision (b), the provision in subdivision (b)begin delete shall begin insert controls.end insert
36control.end delete
Section 1796.23 of the Health and Safety Code is
38amended to read:
(a) Each person initiating a background examination
40to be a registered home care aide shall submit his or her fingerprints
P418 1to the Department of Justice by electronic transmission in a manner
2approved by the department, unless exempt under subdivision (d).
3Each person initiating a background examination to be a registered
4home care aide shall also submit to the department a signed
5declaration under penalty of perjury regarding any prior criminal
6convictions pursuant to Section 1522 and a completed home care
7aide application.
8(b) A law enforcement agency or other local agency authorized
9to take fingerprints may charge a reasonable fee to offset the costs
10of fingerprinting for the purposes of this chapter. The fee revenues
11shall be deposited in the Fingerprint Fees
Account.
12(c) The Department of Justice shall use the fingerprints to search
13begin delete theend delete state and Federal Bureau of Investigation criminal offender
14record information pursuant to Section 1522.
15(d) A person who is a current licensee or employee in a facility
16licensed by the department, a certified foster parent, a certified
17administrator, or a registered TrustLine provider need not submit
18fingerprints to the department, and may transfer his or her current
19criminal record clearance or exemption pursuant to paragraph (1)
20of subdivision (h) of Section 1522. The person shall instead submit
21to the department, along with the person’s registration application,
22a copy of the person’s identification card described in Section
231796.22 and sign a declaration verifying the person’s
identity.
Section 1796.25 of the Health and Safety Code is
25amended to read:
(a) (1) If the department finds that the home care
27aide applicant or the registered home care aide has been convicted
28of a crime, other than a minor traffic violation, the department
29shall deny the home care aide application, or revoke the registered
30home care aide’s registration unless the director grants an
31exemption pursuant to subdivision (g) of Section 1522.
32(2) If the department finds that the home care aide applicant or
33registered home care aide has an arrest as described in subdivision
34(a) of Section 1522, the department may deny the registration
35application or registration renewal application, or revoke the
36registered home care aide’s registration, if the home care aide or
37registered home care aide may pose a risk to the health and
safety
38of any person who is or may become a client and the department
39complies with subdivision (e) of Section 1522.
P419 1(3) The department may deny the home care aide application
2or the renewal application of a registered home care aide, or revoke
3the home care aide registration, if the department discovers that it
4had previously revoked a license or certificate of approval to be a
5certified family home, a certified administrator, or a registered
6begin delete TrustLineend deletebegin insert trustlineend insert provider held by the home care aide applicant
7or registered home care aide, or that it had excluded the home care
8aide applicant or registered home care aide from a licensed facility.
9(4) The department may deny the home care aide
application
10or registered home care aide registration renewalbegin delete application,end delete
11begin insert
applicationend insert for placement or retention upon the home care aide
12begin delete registryend deletebegin insert registry,end insert or revoke the registered home care aide’s
13begin delete registrationend deletebegin insert registration,end insert if the department discovers that it had
14previously denied the home care aide applicant’s or registered
15home care aide’s application for a license from the department or
16certificate of approval to be a certified family home, a certified
17administrator, or a registeredbegin delete TrustLineend deletebegin insert
trustlineend insert
provider.
18(b) (1) If the department revokes or denies a home care aide
19application or registered home care aide’s renewal application
20pursuant to subdivision (a), the department shall advise the home
21care aide applicant or registered home care aide, by written
22notification, of the right to appeal. The home care aide applicant
23or registered home care aide shall have 15 days from the date of
24the written notification to appeal the denial or revocation.
25(2) Upon receipt by the department of the appeal, the appeal
26shall be set for hearing. The hearing shall be conducted in
27accordance with Section 1551.
28(c) If the home care aide application or registered home care
29aide renewal applicationbegin delete has beenend deletebegin insert
isend insert denied, the home care aide
30applicant or registered home care aide shall not reapply until he
31or she meets the timeframe set forth in Sections 1796.40 and
321796.41.
Section 1796.26 of the Health and Safety Code is
34amended to read:
(a) (1) The department may revoke or deny a
36registered home care aide’s registration or request for registration
37renewal if any of the following apply to the registered home care
38aide:
P420 1(A) He or she procured or attempted to procure his or her
2registered home care aide registration or renewal by fraud or
3misrepresentation.
4(B) He or she has a criminal conviction, other than a minor
5traffic violation, unless an exemption is granted pursuant to Section
61522.
7(C) He or she engages or has engaged in conductbegin delete whichend deletebegin insert
thatend insert is
8inimical to the health, morals, welfare, or safety of the people of
9the State of California or an individual receiving or seeking to
10receive home care services.
11(2) An individual whose registration has been revoked shall not
12reapply until he or she meets the timeframe as set forth in Section
131796.40 or 1796.41.
14(3) An individual whose criminal record exemption has been
15denied shall not reapply for two years from the date of the
16exemption denial.
17(4) The hearing to revoke or deny the registered home care aide
18registration or registration renewal request shall be conducted in
19accordance with Section 1551.
20(b) (1) The registered home care aide’s registration shall be
21considered forfeited
under the following conditions:
22(A) The registered home care aide has had a license or certificate
23of approval revoked, suspended, or denied as authorized under
24Section 1534, 1550, 1568.082, 1569.50, 1596.608, or 1596.885.
25(B) The registered home care aide has been denied employment,
26residence, or presence in a facility or client’s home based on action
27resulting from an administrative hearing pursuant to Section 1558,
281568.092, 1569.58, or 1596.8897.
29(C) The registered home care aide fails to maintain a current
30mailing address with the department.
31(D) The registered home care aide’s registration is not renewed.
32(E) The registered home care aide surrenders his or her
33registration to the
department.
34(F) The registered home care aide dies.
35(2) An individual whose registered home care aide registration
36has been forfeited shall not reapply until he or she meets the
37timeframe set forth by the department in Sections 1796.40 and
381796.41.
39(c) A registered home care aide’s registration shall not be
40transferred or sold to another individual or entity.
Section 1796.29 of the Health and Safety Code is
2amended to read:
The department shall do both of the following in the
4administration of the home care aide registry:
5(a) Establish and maintain on the department’s Internet Web
6site the registry of registered home care aides and home care aide
7applicants.
8(1) To expedite the ability of a consumer to search and locate
9a registered home care aide or home care aide applicant, the
10Internet Web site shall enable consumers to look up the registration
11status by providing the registered home care aide’s or home care
12aide applicant’s name, registration number, registration status,
13registration expiration date, and, if applicable, the home care
14organization with which the affiliated home care aide is associated.
15(2) The Internet Web site shall not provide any additional,
16individually identifiable information about a registered home care
17aide or home care aide applicant. The department may request and
18may maintain additional information for registered home care aides
19or home care aide applicants, as necessary for the administration
20of this chapter,begin delete whichend deletebegin insert thatend insert shall not be publicly available on the
21home care aide registry.
22(b) Update the home care registry upon receiving notification
23from a home care organization that an affiliated home care aide is
24no longer employed by the home care organization.
Section 1796.34 of the Health and Safety Code is
26amended to read:
(a) A person or a private or public organization, with
28the exception of any person who performs in-home supportive
29services through the In-Home Supportive Services program
30pursuant to Article 7 (commencing with Section 12300) of Chapter
313 of Part 3 of Division 9 of the Welfare and Institutions Code, or
32Section 14132.95, 14132.952, or 14132.956 of the Welfare and
33Institutions Code, and the exceptions provided for in subdivision
34(b), shall not do any of the following, unlessbegin insert he, she, orend insert it is
35licensed pursuant to this chapter:
36(1) Own, manage, or represent himself, herself or itself to be
37a home care organization by name, advertising,begin delete soliciting,end delete
38begin insert
solicitation,end insert or any other presentments to the public, or in the
39context of services within the scope of this chapter, imply that he,
P422 1she, or it is licensed to provide those services or to make any
2reference to employee bonding in relation to those services.
3(2) Use the terms “home care organization,” “home care,”
4“in-home care,” or any combination of those terms, within its
5name.
6(b) This section does not apply to either of the following:
7(1) Any person who performs in-home supportive services
8through the In-Home Supportive Services program pursuant to
9Article 7 (commencing with Section 12300) of Chapter 3 of Part
103 of Division 9 of, or Section 14132.95, 14132.952, or 14132.956
11of, the Welfare and Institutions Code.
12(2) An employment agency, as defined in Section 1812.5095
13of the Civil Code, that procures, offers, refers, provides, or attempts
14to provide an independent home care aide who provides home care
15to clients.
Section 1796.37 of the Health and Safety Code is
17amended to read:
(a) The department may issue a home care
19organization license to a home care organization applicant that
20satisfies the requirements set forth in this chapter, including all of
21the following:
22(1) Files a complete home care organization application,
23including the fees required pursuant to Section 1796.49.
24(2) Submits proof of general and professional liability insurance
25in the amount of at least one million dollars ($1,000,000) per
26occurrence and three million dollars ($3,000,000) in the aggregate.
27(3) Submits proof of a valid workers’ compensation policy
28covering its affiliated home care aides. The proof shall consist of
29the policy
number, the effective and expiration dates of the policy,
30and the name and address of the policy carrier.
31(4) Submits proof of an employee dishonesty bond, including
32third-party coverage, with a minimum limit of ten thousand dollars
33($10,000). This proof shall be submitted at each subsequent
34renewal.
35(5) Provides the department, upon request, with a complete list
36of its affiliated home care aides, and proof that each satisfies the
37requirements of Sections 1796.43, 1796.44, and 1796.45.
38(6) Passes a background examination, as required pursuant to
39Section 1796.33.
40(7) Completes a department orientation.
P423 1(8) Does not have any outstanding fees or civil penalties due to
2the department.
3(9) Discloses prior or present service as an administrator, general
4partner, corporatebegin delete officerend deletebegin insert officer,end insert or director of, or discloses that
5he or she has held or holds a beneficial ownership of 10 percent
6or more in, any of the following:
7(A) A community care facility, as defined in Section 1502.
8(B) A residential care facility, as defined in Section 1568.01.
9(C) A residential care facility for the elderly, as defined in
10Section 1569.2.
11(D) A child day care facility, as defined in Section 1596.750.
12(E) A day care center, as described in Chapter 3.5 (commencing
13with Section 1596.90).
14(F) A family day care home, as described in Chapter 3.6
15(commencing with Section 1597.30).
16(G) An employer-sponsored child care center, as described in
17Chapter 3.65 (commencing with Section 1597.70).
18(H) A home care organization licensed pursuant to this chapter.
19(10) Discloses any revocation or other disciplinary action taken,
20or in the process of being taken, against a license held or previously
21held by the entities specified in paragraph (9).
22(11) Provides evidence that every member of the board of
23directors, if applicable, understands his
or her legal duties and
24obligations as a member of the board of directors and that the home
25care organization’s operation is governed by laws and regulations
26that are enforced by the department.
27(12) Provides any other information as may be required by the
28department for the proper administration and enforcement of this
29chapter.
30(13) Cooperates with the department in the completion of the
31home care organization license application process. Failure of the
32home care organization licensee to cooperate may result in the
33withdrawal of the home care organization license application.
34“Failure to cooperate” means that the information described in this
35chapter and in any rules and regulations promulgated pursuant to
36this chapter has not been provided, or not provided in the form
37requested by the department, or both.
38(b) A
home care organization licensee shall renew the home
39care organization license every two years. The department may
P424 1renew a home care organization license if the licensee satisfies the
2requirements set forth in this chapter, including all of the following:
3(1) Files a complete home care organization license renewal
4application, including the nonrefundable fees required pursuant to
5Section 1796.49, both of which shall be postmarked on or before
6the expiration of the license.
7(2) Submits proof of general and professional liability insurance
8in the amount of at least one million dollars ($1,000,000) per
9occurrence and three million dollars ($3,000,000) in the aggregate.
10(3) Submits proof of a valid workers’ compensation policy
11covering its affiliated home care aides. The proof shall consist of
12the policy number, the
effective and expiration dates of the policy,
13and the name and address of the policy carrier.
14(4) Submits proof of an employee dishonesty bond, including
15third-party coverage, with a minimum limit of ten thousand dollars
16($10,000).
17(5) Does not have any outstanding fees or civil penalties due to
18the department.
19(6) Provides any other information as may be required by the
20department for the proper administration and enforcement of this
21chapter.
22(7) Cooperates with the department in the completion of the
23home care organization license renewal process. Failure of the
24home care organization licensee to cooperate may result in the
25withdrawal of the home care organization license renewal
26application. “Failure to cooperate” means that the information
27described
in this chapter and in any rules and regulations
28promulgated pursuant to this chapter has not been provided, or not
29provided in the form requested by the department, or both.
30(c) (1) The department shall notify a licensed home care
31organization in writing of its registration expiration date and the
32process of renewal.
33(2) Written notification pursuant to this subdivision shall be
34mailed to the registered home care organization’s mailing address
35of record at least 60 days before the registration expiration date.
Section 1796.38 of the Health and Safety Code is
37amended to read:
The department may deny an application for licensure
39or suspend or revoke any license issued pursuant to this chapter,
P425 1pursuant to Sections 1550.5 and 1551 and in the manner provided
2in this chapter on any of the following grounds:
3(a) Violation by the licensee of this chapter or of the rules and
4regulations promulgated under this chapter.
5(b) Aiding, abetting, or permitting the violation of this chapter
6or of the rules and regulations promulgated under this chapter.
7(c) Conductbegin delete whichend deletebegin insert thatend insert
is inimical to the health, morals, welfare,
8or safety of either an individual receiving home care services or
9the people of the State of California.
10(d) The conviction of a licensee, or other person mentioned in
11Section 1522, at any time before or during licensure, of a crime
12begin delete as definedend deletebegin insert describedend insert in Section 1522.
13(e) Engaging in acts of financial malfeasance concerning the
14operation of a home care organization.
Section 1796.41 of the Health and Safety Code is
16amended to read:
(a) (1) If the department determines that a person
18was issued a license pursuant to this chapter or Chapter 1
19(commencing with Section 1200), Chapter 2 (commencing with
20Section 1250), Chapter 3 (commencing with Section 1500), Chapter
213.01 (commencing with Section 1568.01), Chapter 3.2
22(commencing with Section 1569), Chapter 3.4 (commencing with
23Section 1596.70), Chapter 3.5 (commencing with Section 1596.90),
24Chapter 3.6 (commencing with Section 1597.30), or Chapter 3.65
25(commencing with Section 1597.70), and the prior license was
26revoked within the preceding two years, the department shall
27exclude the person from acting as, and require the home care
28organization to remove him or her from his or her position as, a
29member of the board of directors, an executive director, or an
30officer of a licensee of any
home care organizations licensed by
31the department pursuant to this chapter.
32(2) If the department determines that a person was previously
33issued a certificate of approval by a foster family agency that was
34revoked by the department pursuant to subdivision (b) of Section
351534 within the preceding two years, the department shall exclude
36the person from acting as, and require the home care organization
37to remove him or her from his or her position as, a member of the
38board of directors, an executive director, or an officer of a licensee
39of, any home care organizations licensed by the department
40pursuant to this chapter.
P426 1(b) If the department determines that the person had previously
2applied for a license under any of the chapters listed in paragraph
3(1) of subdivision (a) and the application was denied within the
4last year, the department shall exclude the person from acting as,
5and
require the home care organization to remove him or her from
6his or her position as, a member of the board of directors, an
7executive director, or an officer of a licensee of any home care
8organizations licensed by the department pursuant to this chapter
9as follows:
10(1) In casesbegin delete whereend deletebegin insert in whichend insert the home care organization applicant
11petitioned for a hearing, the department shall exclude the person
12from acting as, and require the home care organization to remove
13him or her from his or her position as, a member of the board of
14directors, an executive director, or an officer of a licensee of, any
15home care organizations licensed by the department pursuant to
16this chapter until one year has elapsed from the effective date of
17the decision and order of the
department upholding a denial.
18(2) In casesbegin delete whereend deletebegin insert in whichend insert the department informed the home
19care organization applicant of his or her right to petition for a
20hearing and the home care organization applicant did not petition
21for a hearing, the department shall exclude the person from acting
22as, and require the home care organization to remove him or her
23from his or her position as, a member of the board of directors, an
24executive director, or an officer of a licensee of, any home care
25organizations licensed by the department pursuant to this chapter
26until one year has elapsed from the date of the notification of the
27denial and the right to petition for a hearing.
28(c) If the department
determines that the person had previously
29applied for a certificate of approval with a foster family agency
30and the department ordered the foster family agency to deny the
31application pursuant to subdivision (b) of Section 1534, the
32department shall exclude the person from acting as, and require
33the home care organization to remove him or her from his or her
34position as, a member of the board of directors, an executive
35director, or an officer of a licensee of, any home care organizations
36licensed by the department pursuant to this chapter and as follows:
37(1) In casesbegin delete whereend deletebegin insert in whichend insert the home care organization applicant
38petitioned for a hearing, the department shall exclude the person
39from acting as, and require the home care organization to remove
40him or
her from his or her position as, a member of the board of
P427 1directors, an executive director, or an officer of a licensee of, any
2home care organizations licensed by the department pursuant to
3this chapter until one year has elapsed from the effective date of
4the decision and order of the department upholding a denial.
5(2) In casesbegin delete whereend deletebegin insert in whichend insert the department informed the home
6care organization applicant of his or her right to petition for a
7hearing and the home care organization applicant did not petition
8for a hearing, the department shall exclude the person from acting
9as, and require the home care organization to remove him or her
10from his or her position as, a member of the board of directors, an
11executive director, or an officer of a licensee of, any
home care
12organizations licensed by the department pursuant to this chapter
13until one year has elapsed from the date of the notification of the
14denial and the right to petition for a hearing.
15(d) Exclusion or removal of an individual pursuant to this section
16shall not be considered an order of exclusion for purposes of
17Section 1796.25 or any other law.
18(e) The department may determine not to exclude a person from
19begin delete acting asend deletebegin insert acting,end insert or require that he or she be removed from his or
20herbegin delete positionend deletebegin insert
position,end insert as a member of the board of directors, an
21executive director, or an officer of a licensee of, any home care
22organizations licensed by the department pursuant to this chapter
23if it has been determined that the reasons for the denial of the
24application or revocation of the facility license or certificate of
25approval were due to circumstances or conditions that either have
26been corrected or are no longer in existence.
Section 1796.44 of the Health and Safety Code is
28amended to read:
(a) A licensee shall ensure that prior to providing
30home care services, an affiliated home care aide shall complete
31the training requirements specified in this section.
32(b) An affiliated home care aide shall complete a minimum of
33five hours of entry-level training prior to presence with a client,
34as follows:
35(1) Two hours of orientation training regarding his or her role
36as caregiver and the applicable terms of employment.
37(2) Three hours of safety training, including basic safety
38precautions, emergency procedures, and infection control.
39(c) In addition to the requirements
in subdivision (b), an
40affiliated home care aide shall complete a minimum of five hours
P428 1of annual training. The annual training shall relate to core
2competencies and be population specific, which shall include, but
3not be limited to, the following areas:
4(1) Clients’ rights and safety.
5(2) How to provide forbegin insert,end insert and respond tobegin insert,end insert a client’s daily living
6needs.
7(3) How to report, prevent, and detect abuse and neglect.
8(4) How to assist a client with personal hygiene and other home
9care services.
10(5) If transportation services are provided, how to safely
11transport a client.
12(d) The entry-level training and annual training described in
13subdivisions (b) and (c) may be completed through an online
14training program.
Section 1796.45 of the Health and Safety Code is
16amended to read:
(a) Affiliated home care aides hired on or after
18January 1, 2016, shall submit to an examination 90 days prior to
19begin delete employmentend deletebegin insert employment,end insert or within seven days afterbegin delete employmentend delete
20begin insert employment,end insert to determine that the individual is free of active
21tuberculosis disease.
22(b) For purposes of this section, “examination” means a test for
23tuberculosis infection that is recommended by the federal
Centers
24for Disease Control and Prevention (CDC) andbegin delete that isend delete
licensed by
25the federal Food and Drug Administration (FDA) and, if that test
26is positive, an X-ray of the lungs. The aide shall not work as an
27affiliated home care aide unless the licensee obtains documentation
28from a licensed medical professional that there is no risk of
29spreading the disease.
30(c) After submitting to an examination, an affiliated home care
31aide whose test for tuberculosis infection is negative shall be
32required to undergo an examination at least once every two years.
33Once an affiliated home care aide has a documented positive test
34for tuberculosis infection that has been followed by an X-ray, the
35examination is no longer required.
36(d) After each examination, an affiliated home care aide shall
37submit, and the home care organization shall keep on file, a
38certificate from the examining practitioner showing that the
39affiliated home care aide was
examined and found free from active
40tuberculosis disease.
P429 1(e) The examination is a condition of initial and continuing
2employment with the home care organization.
3(f) An affiliated home care aide who transfers employment from
4one home care organization to another shall be deemed to meet
5the requirements of subdivision (a) or (c) if the affiliated home
6care aide can produce a certificate showing that he or she submitted
7to the examination within the past two years and was found to be
8free of active tuberculosis disease, or if it is verified by the home
9care organization previously employing him or her that it has a
10certificate on file that contains that showing and a copy of the
11certificate is provided to the new home care organization prior to
12the affiliated home care aide beginning employment.
Section 4730.65 of the Health and Safety Code is
14amended to read:
(a) Notwithstanding Sections 4730, 4730.1, and
164730.2, or any other law, the governing body of the Orange County
17Sanitation District shall be a board of directors composed of all of
18the following:
19(1) One member of the city council of each city located wholly
20or partially within the district’s boundaries, except the City of
21Yorba Linda, provided, however, a city within the Orange County
22Sanitation District, the sewered portion of which city lies entirely
23within another sanitary district, shall have no representation on
24the board.
25(2) One member of the county board of supervisors.
26(3) One member of the governing body of each sanitary
district,
27the whole or part of which is included in the Orange County
28Sanitation District.
29(4) One member of the governing body of a public agency
30empowered to and engaged in the collection, transportation,
31treatment, or disposal of sewage andbegin delete whichend deletebegin insert thatend insert was a member
32agency of a sanitation district consolidated into the Orange County
33Sanitation District.
34(5) One member of the governing body of the Yorba Linda
35Water District.
36(b) The governing body of the county and each city, sanitary
37district, and public agency that is a member agency having a
38representative on the board of directors of the Orange County
39Sanitation District,
may designate one of its members to act in the
P430 1place of its regular member in his or her absence or his or her
2inability to act.
3(c) begin deleteNo end deletebegin insertAn end insertaction shallbegin insert notend insert be taken at any meeting of the Orange
4County Sanitation District’s board of directors unless a majority
5of all authorized members of the board of directors is in attendance.
6(d) A majority of the members of the board of directors present
7begin delete shall beend deletebegin insert isend insert
required to approve or otherwise act on any matter
8except as otherwise required by law.
Section 4766.5 of the Health and Safety Code, as
10added by Section 21 of Chapter 158 of the Statutes of 2005, is
11amended and renumbered to read:
A district may destroy a record pursuant to Chapter 7
14(commencing with Section 60200) of Division 1 of Title 6 of the
15Government Code.
Section 8650.5 of the Health and Safety Code, as
17added by Section 36 of Chapter 436 of the Statutes of 2001, is
18repealed.
An affidavit executed by a person who is the owner
20of the plot by virtue of the laws of intestate succession or by his
21or her attorney-in-fact, setting forth the fact of the death of the
22owner, the absence of a disposition of the plot by the owner in his
23or her will by a specific devise, the name of the person or persons
24who have rights to the plot under the intestate succession laws of
25the state, and the consent of that person or those persons to the
26sale of the plot by the cemetery authority, shall constitute complete
27authorization to the cemetery authority to permit any sale of the
28unoccupied portions of the plot.
The heading of Article 3 (commencing with Section
3011140) of Chapter 3 of Division 10 of the Health and Safety Code
31 is repealed.
32
The heading of Article 2 (commencing with Section
3611760.5) of Chapter 1 of Part 2 of Division 10.5 of the Health and
37Safety Code, as added by Chapter 679 of the Statutes of 1979, is
38repealed.
39
The heading of Article 6 (commencing with Section
211780) of Chapter 2 of Part 2 of Division 10.5 of the Health and
3Safety Code is repealed.
4
Division 10.10 (commencing with Section 11999.30)
8of the Health and Safety Code is repealed.
Section 13143.5 of the Health and Safety Code, as
10added by Chapter 1204 of the Statutes of 1973, is amended and
11renumbered to read:
begin deleteNeither the end deletebegin insertThe end insertState Fire Marshalbegin delete norend deletebegin insert orend insert any local
14public entity shallbegin insert notend insert charge any fee for enforcing the provisions
15of
Section 13143 or regulations adopted pursuant thereto with
16respect to facilities providing nonmedical board, room, and care
17for six or less children which are required to be licensed under the
18provisions of Chapter 2 (commencing with Section 1250) of
19Division 2.
The heading of Chapter 3 (commencing with Section
2116500) of Division 12.5 of the Health and Safety Code, as added
22by Section 2 of Chapter 953 of the Statutes of 1989, is amended
23and renumbered to read:
24
Section 16500 of the Health and Safety Code is
28amended to read:
Thebegin delete office of theend delete State Architect shall adopt guidelines
30applicable to substandard conditions of school buildings, as defined
31in Section 17283 of the Education Code, which guidelines shall
32take into consideration the unique design, use, safety needs, and
33construction of the school buildings.
The heading of Article 5.5 (commencing with
35Section 25159.10) of Chapter 6.5 of Division 20 of the Health and
36Safety Code, as added by Section 1 of Chapter 1591 of the Statutes
37of 1985, is amended and renumbered to read:
38
Section 25163.3 of the Health and Safety Code is
2amended to read:
A person who initially collects hazardous waste at a
4remote site and transports that hazardous waste to a consolidation
5site operated by the generator and who complies with the
6notification requirements of subdivision (d) of Section 25110.10
7shall be exempt from the manifest and transporter registration
8requirements of Sections 25160 and 25163 with regard to the
9hazardous waste if all of the following conditions are met:
10(a) The hazardous waste is a non-RCRA hazardous waste, or
11the hazardous waste or its transportation is otherwise exempt from,
12or is not otherwise regulated pursuant to, the federal act.
13(b) The conditions and requirements of Section 25121.3 are
14met.
15(c) The regulations adopted by the department pertaining to
16personnel training requirements for generators are complied with
17for all personnel handling the hazardous waste during transportation
18from the remote site to the consolidation site.
19(d) The hazardous waste is transported by employees of the
20generator or by trained contractors under the control of the
21generator, in vehicles that are under the control of the generator,
22or by registered hazardous waste transporters. The generator shall
23assume liability for a spill of hazardous waste being transported
24under this section by the generator, or a contractor in a vehicle
25under the control of the generator or contractor.begin delete Nothing in thisend delete
26begin insert Thisend insert subdivisionbegin delete barsend deletebegin insert
does not barend insert any agreement to insure, hold
27harmless, or indemnify a party to the agreement for any liability
28under this section or otherwise bars any cause of action a generator
29would otherwise have against any other party.
30(e) The hazardous waste is not held at any interim location,
31other than another remote site operated by the same generator, for
32more than eight hours, unless that holding is required by other
33provisions of law.
34(f) Not more than 275 gallons or 2,500 pounds, whichever is
35greater, of hazardous waste is transported in any single shipment,
36except for the following:
37(1) A generator who is a public utility, local publicly owned
38utility, or municipal utility district may transport up to 1,600
39gallons of hazardous wastewater from the dewatering of one or
P433 1more utility
vaults, or up to 500 gallons of another liquid hazardous
2waste in a single shipment.
3(2) A generator who is a public utility, local publicly owned
4utility, or municipal utility district may transport up to 5,000
5gallons of mineral oil from a transformer, circuit breakers, or
6capacitors, owned by the generator, in a single shipment if the oil
7does not exhibit the characteristic of toxicity pursuant to the test
8specified in subparagraph (B) of paragraph (2) of subdivision (a)
9of Section 66261.24 of Title 22 of the California Code of
10Regulations.
11(3) (A) A generator who is a public utility, local publicly owned
12utility, or municipal utility district may transport up to 5,000
13gallons of hazardous wastewater from the dewatering of a utility
14vault in an emergency situation.
15(B) For the purposes of
this paragraph “emergency situation”
16means that utility vault dewatering necessitates immediate response
17to avoid endangerment to human health, public safety, or the
18environment, under one or more of the following circumstances:
19(i) A vehicle hits a utility pole or stationary utility equipment
20and knocks down a transformer that spills oil on a public area.
21(ii) A spill occurs at or near a vault rendering the contents
22potentially hazardous and crews need to remove the liquid to
23decontaminate the vault and to access critical equipment to avoid
24a service outage.
25(iii) A spill occurs at or near a vault that renders the contents
26potentially hazardous and rainwater flowing into the vault threatens
27to cause an overflow that will spill into the surrounding area.
28(iv) Groundwater intrusion threatens the electrical equipment
29inside the vault and the reliability of the electrical system.
30(v) Heavy rain events, due to the rate of rainfall,begin delete threatensend delete
31begin insert threatenend insert the cables and equipment inside the vault.
32(C) In transporting hazardous waste pursuant to this paragraph,
33the generator shall only collect hazardous waste from one utility
34vault and shall not consolidate hazardous waste from multiple
35sites.
36(g) A shipping paper containing all of the following information
37accompanies the hazardous waste while in transport, except as
38provided in subdivision (h):
39(1) A list of the hazardous wastes being transported.
P434 1(2) The type and number of containers being used to transport
2each type of hazardous waste.
3(3) The quantity, by weight or volume, of each type of hazardous
4waste being transported.
5(4) The physical state, such as solid, powder, liquid, semiliquid,
6or gas, of each type of hazardous waste being transported.
7(5) The location of the remote site where the hazardous waste
8is initially collected.
9(6) The location of any interim site where the hazardous waste
10is held en route to the consolidation site.
11(7) The name,
address, and telephone number of the generator,
12and, if different, the address and telephone number of the
13consolidation site to which the hazardous waste is being
14transported.
15(8) The name and telephone number of an emergency response
16contact, for use in the event of a spill or other release.
17(9) The name of the individual or individuals who transport the
18hazardous waste from the remote site to the consolidation site.
19(10) The date that the generator first begins to actively manage
20the hazardous waste at the remote site, the date that the shipment
21leaves the remote site where the hazardous waste is initially
22collected, and the date that the shipment arrives at the consolidation
23site.
24(h) A shipping paper is not required if the total quantity of the
25
shipment does not exceed 10 pounds of hazardous waste, except
26that a shipping paper is required to transport any quantity of
27extremely or acutely hazardous waste.
28(i) All shipments conform with all applicable requirements of
29the United States Department of Transportation for hazardous
30materials shipments.
Section 25262 of the Health and Safety Code is
32amended to read:
(a) A responsible party for a hazardous materials
34release site may request the committee at any time to designate an
35administering agency to oversee a site investigation and remedial
36action at the site. The committee shall designate an administering
37agency as responsible for the site within 45 days of the date the
38request is received. A request to designate an administering agency
39may be denied only if the committee makes one of the following
40findings:
P435 1(1) No single agency in state or local government has the
2expertise needed to adequately oversee a site investigation and
3remedial action at the site.
4(2) Designating an administering agency will have the
effect
5of reversing a regulatory or enforcement action initiated by an
6agency that has jurisdiction over the site, a facility on the site, or
7an activity at the site.
8(3) Designating an administering agency will prevent a
9regulatory or enforcement action required by federal law or
10regulations.
11(4) The administering agency and the responsible party are
12local agencies formed, in whole or in part, by the same political
13subdivision.
14(b) A responsible party who requests the designation of an
15administering agency for a hazardous materials release site shall
16provide the committee with a brief description of the site, an
17analysis of the known or suspected nature of the release or
18threatened release that is the subject of required site investigation
19or remedial action, a description of the type of facility from which
20the
release occurred or the type of activity that caused the release,
21a specification of the regulatory or enforcement actions that have
22been taken, or are pending, with respect to the release, and a
23statement of which agency the responsible party believes should
24be designated as administering agency for the site.
25(c) (1) The committee shall take all of the following factors
26into account in determining which agency to designate as
27administering agency for a site:
28(A) The type of release that is the subject of site investigation
29and remedial action.
30(B) The nature of the threat that the release poses to human
31health and safety or to the environment.
32(C) The source of the release, the type of facility or activity
33from which the
release occurred, the regulatory programs that
34govern the facility or activity involved, and the agency or agencies
35that administer those regulatory programs.
36(D) The regulatory history of the site, the types of regulatory
37actions or enforcement actions that have been taken with respect
38to the site or the facility or activity from which the release occurred,
39and the experience and involvement that various agencies have
40had with the site.
P436 1(E) The capabilities and expertise of the agencies that are
2candidates for designation as the administering agency for the site
3and the degree to which those capabilities and that expertise are
4applicable to the type of release at the site, the nature of the threat
5that the release poses to health and safety or the environment and
6the probable remedial measures that will be required.
7(2)
After weighing the factors described in paragraph (1) as
8they apply to the site, the committee shall use the criteria specified
9in subparagraphs (A), (B), (C), and (D) as guidelines for
10designating the administering agency. If more than one of the
11criteria apply to the site, the committee shall use its best judgment,
12taking into account the known facts concerning the hazardous
13materials release at the site and its regulatory history, in
14determining which agency may best serve as the administering
15agency. The criteria are as follows:
16(A) The administering agency shall be the Department of Toxic
17Substances Control if one of the following applies:
18(i) The department has issued an order, or otherwise initiated
19action, with respect to the release at the site pursuant to Section
2025355, 25355.5, or 25358.3.
21(ii)
The department has issued an order for corrective action at
22the site pursuant to Section 25187.
23(iii) The source of the release is a facility or hazardous waste
24management unit or an activity that is, or was, regulated by the
25department pursuant to Chapter 6.5 (commencing with Section
2625100).
27(iv) The department is conducting, or has conducted, oversight
28of the site investigation and remedial action at the site at the request
29of the responsible party.
30(B) The administering agency shall be the California regional
31water quality control board for the region in which the site is
32located, if one of the following applies:
33(i) The California regional water quality control board has
34issued a cease and desist order pursuant to Section
13301, or a
35cleanup and abatement order pursuant to Section 13304 of the
36Water Code in connection with the release at the site.
37(ii) The source of the release is a facility or an activity that is
38subject to waste discharge requirements issued by the California
39regional water quality control board pursuant to Section 13263 of
40the Water Code or that is regulated by the California regional water
P437 1quality control board pursuant to Articlebegin delete 5.5end deletebegin insert 5.6end insert (commencing
2with Section 25159.10) of, or Article 9.5 (commencing with
3Section 25208) of, Chapter 6.5, or pursuant to Chapter 6.67
4(commencing with Section 25270).
5(iii) The California regional water quality control board has
6jurisdiction over the site
pursuant to Chapter 5.6 (commencing
7with Section 13390) of Division 7 of the Water Code.
8(C) The administering agency shall be the Department of Fish
9and Game if the release has polluted or contaminated the waters
10of the state and the department has taken action against the
11responsible party pursuant to Section 2014 or 12015 of, or Article
121 (commencing with Section 5650) of Chapter 2 of Part 1 of
13Division 6 of, the Fish and Game Code, subsection (f) of Section
14107 of the Comprehensive Environmental Response,
15Compensation, and Liability Act, as amended, (42 U.S.C. Sec.
169607 (f)), or Section 311 of the Federal Water Pollution Act, as
17amended (33 U.S.C. Sec. 1321).
18(D) The administering agency shall be a local agency if any
19one of the following circumstances is applicable:
20(i) The source of the release at the site
is an underground storage
21tank, as defined in subdivision (y) of Section 25281, the local
22agency is the agency described in subdivision (i) of Section 25281,
23and there is no evidence of any extensive groundwater
24contamination at the site.
25(ii) The local agency has accepted responsibility for overseeing
26the site investigation or remedial action at the site and a state
27agency is not involved.
28(iii) The local agency has agreed to oversee the site
29investigation or remedial action at the site and is certified, or has
30been approved, by a state agency to conduct that oversight.
31(d) A responsible party for a hazardous materials release site
32may request the designation of an administering agency for the
33site pursuant to this section only once. The action of the committee
34on the request is a final action and is not subject
to further
35administrative or judicial review.
The heading of Article 8 (commencing with Section
3725299.80) of Chapter 6.75 of Division 20 of the Health and Safety
38Code is repealed.
39
The heading of Article 12 (commencing with Section
225299.97) of Chapter 6.75 of Division 20 of the Health and Safety
3Code, as added by Section 7 of Chapter 814 of the Statutes of
41997, is repealed.
5
Section 25299.97 of the Health and Safety Code,
9as amended by Section 134 of Chapter 745 of the Statutes of 2001,
10is repealed.
(a) For the purposes of this article, the following
12definitions shall apply:
13(1) “Public drinking water well” means a wellhead that provides
14drinking water to a public water system, as that term is defined in
15Section 116275, that is regulated by the State Department of Health
16Services and that is subject to Section 116455.
17(2) “MTBE” means methyl tertiary-butyl ether.
18(3) “GIS mapping system” means a geographic information
19system that collects, stores, retrieves, analyzes, and displays
20environmental geographic data in a data base that is accessible to
21the public.
22(4) “Motor vehicle fuel” includes gasoline, natural gasoline,
23blends of gasoline and alcohol or gasoline and oxygenates and any
24inflammable liquid, by whatever name the liquid may be known
25or sold, which is used or usable for propelling motor vehicles
26operated by the explosion type engine. It does not include kerosine,
27liquefied petroleum gas, or natural gas, in liquid or gaseous form.
28(5) “Oxygenated motor vehicle fuel” is motor vehicle fuel, as
29defined in paragraph (4), that meets the federal definition for
30“Oxygenated Fuel” as defined in Section 7545(m) of Title 42 of
31the United States Code.
32(6) “Oxygenate” means an organic compound containing oxygen
33 that has been approved by the United States Environmental
34Protection Agency as a gasoline additive to meet the requirements
35for an “oxygenated fuel” pursuant to Section 7545 of Title 42 of
36the United States Code.
37(b) The State Water Resources Control Board shall upgrade the
38data base created by Section 25299.39.1. This upgrade shall include
39the establishment of a statewide GIS mapping system as described
P439 1in this section only upon an appropriation by the Legislature for
2this purpose.
3(c) (1) For purposes of subdivision (b), the board shall create
4a GIS Mapping and Data Management Advisory Committee. The
5committee shall give the board advice on location standards,
6protocols, metadata, and the appropriate data to expand the data
7base to create a cost-effective GIS mapping system that will
8provide the appropriate information to allow agencies to better
9protect public drinking water wells and, if feasible, nearby aquifers
10that are reasonably expected to be used as drinking water, from
11contamination by motor vehicle fuel from underground storage
12tanks and intrastate and interstate pipelines that are regulated by
13the State Fire Marshal pursuant to the California Pipeline Safety
14Act of 1981, Chapter 5.5 (commencing with Section 51010.5) of
15Part 1 of Division 1 of Title 5 of the Government Code.
16(2) The advisory committee shall include, at a minimum,
17members from appropriate state and local agencies, affected
18industry and business, the water agencies that provide drinking
19water in Santa Monica, the water agencies that provide drinking
20water in the Santa Clara Valley, nonprofit environmental groups
21dedicated to the conservation and preservation of natural resources,
22and underground storage tank owners.
23(d) (1) The board shall create two pilot projects, the Santa
24Monica Groundwater Pilot Project and the Santa Clara Valley
25Groundwater Pilot Project, which shall terminate on July 1, 1999.
26(2) The board shall create the pilot projects with the advice of
27the advisory committee so as to expedite and prioritize the
28upgrading of the data base for those regions of the state where
29groundwater provides, or would be called on in an emergency to
30provide, a significant portion of the region’s drinking water.
31(3) The board shall use the pilot projects to define and assess
32the parameters of the data base, identify data needs, develop
33opportunities to electronically link data bases and electronic
34submission of information, offer access to the public via the
35Internet, streamline existing processes, and work out the details
36for data management and a GIS mapping system as described in
37this article.
38(4) The pilot projects shall study appropriate modification to
39public water systems and response times.
P440 1(e) To upgrade the data base as required by this section, the
2board, in consultation with the advisory committee, shall do all of
3the following:
4(1) Coordinate with the Department of Water Resources and
5the State Department of Health Services to obtain the location of
6existing drinking water wells and appropriate water resource and
7quality data to meet the requirements of this article.
8(2) Coordinate with local agencies authorized to implement this
9chapter to obtain the location of all underground storage tanks that
10store motor vehicle fuel that are within 1,000 feet of a public
11drinking water well.
12(3) Coordinate with local agencies authorized to implement this
13chapter to add the location of all known releases of motor vehicle
14fuel from underground storage tanks that are within 1,000 feet of
15a drinking water well.
16(4) Coordinate with the State Fire Marshal to add the location
17and leak history of all pipelines or segments of pipelines that
18transport motor vehicle fuel and that are regulated by the State
19Fire Marshal pursuant to Chapter 5.5 (commencing with Section
2051010) of Part 1 of Division 1 of Title 5 of the Government Code
21that are within 1,000 feet of an existing public drinking water well.
22(f) The board may expend up to four hundred thousand dollars
23($400,000) from the Underground Storage Tank Cleanup Fund for
24the purposes set forth in Section 25299.36 to fund the GIS mapping
25system projects referred to in this section.
Section 25299.97 of the Health and Safety Code,
27as amended by Section 135 of Chapter 745 of the Statutes of 2001,
28is amended to read:
(a) For the purposes of this article, the following
30definitions shall apply:
31(1) “Public drinking water well” means a wellhead that provides
32drinking water to a public water system, as that term is defined in
33Section 116275, that is regulated by the Statebegin delete Department of Health begin insert Water Resources Control Boardend insert and that is subject to
34Servicesend delete
35Section 116455.
36(2) “MTBE” means methyl tertiary-butyl ether.
37(3) “GIS
mapping system” means a geographic information
38system that collects, stores, retrieves, analyzes, and displays
39environmental geographic data in a data base that is accessible to
40the public.
P441 1(4) “Motor vehicle fuel” includes gasoline, natural gasoline,
2blends of gasoline and alcohol or gasoline andbegin delete oxygenatesend delete
3begin insert oxygenates,end insert and any inflammable liquid, by whatever name the
4liquid may be known or sold,begin delete whichend deletebegin insert thatend insert is used or usable for
5propelling motor vehicles operated by the explosion type engine.
6It does not include kerosine, liquefied petroleum gas, or natural
7gas, in
liquid or gaseous form.
8(5) “Oxygenated motor vehicle fuel” is motor vehicle fuel, as
9defined in paragraph (4), that meets the federal definition for
10“Oxygenatedbegin delete Fuel” as definedend deletebegin insert fuelend insertbegin insert”end insert in Section 7545(m) of Title
1142 of the United States Code.
12(6) “Oxygenate” means an organic compound containing oxygen
13that has been approved by the United States Environmental
14Protection Agency as a gasoline additive to meet the requirements
15for an “oxygenated fuel” pursuant to Section 7545 of Title 42 of
16the United States Code.
17(b) The
State Water Resources Control Board shall upgrade the
18data base created by Sectionbegin delete 25299.39.1.end deletebegin insert 25296.35.end insert
This upgrade
19shall include the establishment of a statewide GIS mapping system
20as described in this section only upon an appropriation by the
21Legislature for this purpose.
22(c) (1) For purposes of subdivision (b), the board shall create
23a GIS Mapping and Data Management Advisory Committee. The
24committee shall give the board advice on location standards,
25protocols, metadata, and the appropriate data to expand the data
26base to create a cost-effective GIS mapping system that will
27provide the appropriate information to allow agencies to better
28protect public drinking water wells and, if feasible, nearby aquifers
29that are reasonably expected to be used as drinking water, from
30contamination by motor vehicle fuel from underground storage
31tanks and intrastate and interstate pipelines that are regulated by
32the State Fire Marshal pursuant to the California Pipeline Safety
33Act of 1981, Chapter 5.5 (commencing with
Section 51010.5) of
34Part 1 of Division 1 of Title 5 of the Government Code.
35(2) The advisory committee shall include, at a minimum,
36members from appropriate state and local agencies, affected
37industry and business, the water agencies that provide drinking
38water in Santa Monica, the water agencies that provide drinking
39water in the Santa Clara Valley, nonprofit environmental groups
P442 1dedicated to the conservation and preservation of natural resources,
2and underground storage tank owners.
3(d) (1) The board shall create two pilot projects, the Santa
4Monica Groundwater Pilot Project and the Santa Clara Valley
5Groundwater Pilot Project, which shall terminate on July 1, 1999.
6(2) The board shall create the pilot projects with the advice of
7the advisory committee so as to expedite and prioritize the
8
upgrading of the data base for those regions of the state where
9groundwater provides, or would be called on in an emergency to
10provide, a significant portion of the region’s drinking water.
11(3) The board shall use the pilot projects to define and assess
12the parameters of the data base, identify data needs, develop
13opportunities to electronically link data bases and electronic
14submission of information, offer access to the public via the
15Internet, streamline existing processes, and work out the details
16for data management and a GIS mapping system as described in
17this article.
18(4) The pilotbegin delete projectend deletebegin insert projectsend insert shall study appropriate notification
19to public water systems and response times.
20(e) To upgrade the data base as required by this section, the
21board, in consultation with the advisory committee, shall do all of
22the following:
23(1) Coordinate with the Department of Water Resources and
24the State Department ofbegin insert Publicend insert Healthbegin delete Servicesend delete to obtain the
25location of existing drinking water wells and appropriate water
26resource and quality data to meet the requirements of this article.
27(2) Coordinate with local agencies authorized to implement this
28chapter to obtain the location of all underground storage tanks that
29store motor vehicle fuel that are within 1,000 feet of a public
30drinking water well.
31(3) Coordinate with local agencies authorized to implement this
32chapter to add the location of all known releases of motor vehicle
33fuel from underground storage tanks that are within 1,000 feet of
34a drinking water well.
35(4) Coordinate with the State Fire Marshal to add the location
36and leak history of all pipelines or segments of pipelines that
37transport motor vehicle fuel and that are regulated by the State
38Fire Marshal pursuant to Chapter 5.5 (commencing with Section
3951010) of Part 1 of Division 1 of Title 5 of the Government Code
40that are within 1,000 feet of an existing public drinking water well.
P443 1(f) The board may expend up to four hundred thousand dollars
2($400,000) from the Underground Storage Tank Cleanup Fund for
3the purposes set forth in Section 25299.36 to fund the GIS mapping
4system projects referred to in
this section.
Section 25507.2 of the Health and Safety Code is
6amended to read:
Unlessbegin insert otherwiseend insert required by a local ordinance, the
8unified program agency shall exempt a business operating an
9unstaffed facility located at least one-half mile from the nearest
10occupied structure from Sections 25508.2 and 25511, and shall
11subject the business to Sections 25505, 25506, and 25507 only as
12specified in this section, if the business is not otherwise subject to
13the requirements of applicable federal law, and all of the following
14requirements are met:
15(a) The types and quantities of materials onsite are limited to
16one or more of the following:
17(1) One thousand standard cubic feet of compressed inert
gases
18(asphyxiation and pressure hazards only).
19(2) Five hundred gallons of combustible liquid used as a fuel
20source.
21(3) Corrosive liquids, not to exceed 500 pounds of extremely
22hazardous substances, used as electrolytes, and in closed containers.
23(4) Five hundred gallons of lubricating and hydraulic fluids.
24(5) One thousand two hundred gallons of hydrocarbon gas used
25as a fuel source.
26(6) Any quantity of mineral oil contained within electrical
27equipment, such as transformers, bushings, electrical switches,
28and voltage regulators, if the spill prevention control and
29countermeasure plan has been prepared for quantities that meet or
30exceed 1,320 gallons.
31(b) The facility is secured and not accessible to the public.
32(c) Warning signs are posted and maintained for hazardous
33materials pursuant to the California Fire Code.
34(d) (1) Notwithstanding Sections 25505 and 25507, a one-time
35business plan, except for the emergency response plan and training
36elements specified in paragraphs (3) and (4) of subdivision (a) of
37Section 25505, is submitted to the statewide information
38management system. This one-time business plan submittal is
39subject to a verification inspection by the unified program agency
40and the unified program agency may assess a fee not to exceed the
P444 1actual costs of processing and for inspection, if an inspection is
2conducted.
3(2) If the information contained in the one-time
submittal of the
4business plan changes and the time period of the change is longer
5than 30 days, the business plan shall be resubmitted within 30 days
6to the statewide information management system to reflect any
7change in the business plan. A fee not to exceed the actual costs
8of processing and inspection, if conducted, may be assessed by
9the unified program agency.
Section 25997 of the Health and Safety Code, as
11added by Section 1 of Chapter 51 of the Statutes of 2010, is
12amended and renumbered to read:
begin deleteAny end deletebegin insertA end insertperson who violates this chapter is guilty of a
15misdemeanor, and upon conviction thereof shall be punished by
16a fine not to exceed one thousand dollars ($1,000) or by
17imprisonment in the county jail for a period not to exceed 180 days
18or by both that fine and imprisonment.
Section 25997.1 of the Health and Safety Code is
20amended and renumbered to read:
The provisions of this chapter are in addition to, and
23not in lieu of, any other laws protecting animal welfare, including
24the Penal Code. This chapter shall not be construed to limit any
25state law or regulation protecting the welfare of animals, nor shall
26anything in this chapter prevent a local governing body from
27adopting and enforcing its own animal welfare laws and
28regulations.
Section 33492.78 of the Health and Safety Code is
30amended to read:
(a) Section 33607.5begin delete shallend deletebegin insert doesend insert not apply to an
32agency created pursuant to this article. For purposes of Sections
3342238.02, 84750.5, and 84751 of the Education Code, funds
34allocated pursuant to this section shall be treated as if they were
35allocated pursuant to Section 33607.5.
36(1) This sectionbegin delete shall applyend deletebegin insert appliesend insert to each redevelopment
37project area created pursuant to a redevelopment
plan that contains
38the provisions required by Section 33670 and is created pursuant
39to this article. All the amounts calculated pursuant to this section
40shall be calculated after the amount required to be deposited in the
P445 1Low and Moderate Income Housing Fund pursuant to Sections
233334.2, 33334.3, and 33334.6, as modified by Section 33492.76,
3has been deducted from the total amount of tax-increment funds
4received by the agency in the applicable fiscal year.
5(2) The payments made pursuant to this sectionbegin delete shall beend deletebegin insert areend insert in
6addition to any amounts the school district or districts and
7community college district or districts receive pursuant to
8subdivision (a) of Section 33670. The agency shall reduce its
9payments pursuant to this section to an affected school or
10
community college district by any amount the agency has paid,
11directly or indirectly, pursuant to Section 33445, 33445.5, or 33446,
12or any provision of law other than this section for, or in connection
13with, a public facility owned or leased by that affected school or
14community college district.
15(3) (A) Of the total amount paid each year pursuant to this
16section to school districts, 43.9 percent shall be considered to be
17property taxes for the purposes of paragraph (1) of subdivision (j)
18of Section 42238.02 of the Education Code, and 56.1 percent shall
19not be considered to be property taxes for the purposes of that
20section, and shall be available to be used for educational facilities.
21(B) Of the total amount paid each year pursuant to this section
22to community college districts, 47.5 percent shall be considered
23to be property taxes for the purposes of Section
84751 of the
24Education Code, and 52.5 percent shall not be considered to be
25property taxes for the purposes of that section, and shall be
26available to be used for educational facilities.
27(C) Of the total amount paid each year pursuant to this section
28to county offices of education, 19 percent shall be considered to
29be property taxes for the purposes of paragraph (1) of subdivision
30(c) of Section 2575 of the Education Code, and 81 percent shall
31not be considered to be property taxes for the purposes of that
32section, and shall be available to be used for educational facilities.
33(D) Of the total amount paid each year pursuant to this section
34to special education, 19 percent shall be considered to be property
35taxes for the purposes of paragraph (1) of subdivision (j) of Section
3642238.02 of the Education Code, and 81 percent shall not be
37considered to be property taxes for the purposes
of that section,
38and shall be available to be used for educational facilities.
P446 1(4) Localbegin delete educationend deletebegin insert educationalend insert agencies that use funds received
2pursuant to this section for educational facilities shall spend these
3funds at schools that are any one of the following:
4(A) Within the project area.
5(B) Attended by students from the project area.
6(C) Attended by students generated by projects that are assisted
7directly by the redevelopment agency.
8(D) Determined by a localbegin delete educationend deletebegin insert
educationalend insert agency to be
9of benefit to the project area.
10(b) Commencing with the first fiscal year in which the agency
11receives tax increments, and continuing through the last fiscal year
12in which the agency receives tax increments, a redevelopment
13agency created pursuant to this article shall pay to each affected
14school and community college district an amount equal to the
15product of 25 percent times the percentage share of total property
16taxes collected that are allocated to each affected school or
17community college district, including any amount allocated to each
18 district pursuant to Sections 97.03 and 97.035 of the Revenue and
19Taxation Code times the total of the tax increments received by
20the agency after the amount required to be deposited in the Low
21and Moderate Income Housing Fund has been deducted.
22(c) Commencing with the 11th fiscal
year in which the agency
23receives tax increments and continuing through the last fiscal year
24in which the agency receives tax increments, a redevelopment
25agency created pursuant to this article shall pay to each affected
26school and community college district, in addition to the amounts
27paid pursuant to subdivision (b), an amount equal to the product
28of 21 percent times the percentage share of total property taxes
29collected that are allocated to each affected school or community
30college district, including any amount allocated to each district
31pursuant to Sections 97.03 and 97.035 of the Revenue and Taxation
32Code times the total of the first adjusted tax increments received
33by the agency after the amount required to be deposited in the Low
34and Moderate Income Housing Fund has been deducted. The first
35adjusted tax increments received by the agency shall be calculated
36by applying the tax rate against the amount of assessed value by
37which the current year assessed value exceeds the first adjusted
38base year
assessed value. The first adjusted base year assessed
39value is the assessed value of the project area in the 10th fiscal
40year in which the agency receives tax increment.
P447 1(d) Commencing with the 31st fiscal year in which the agency
2receives tax increments and continuing through the last fiscal year
3in which the agency receives tax increments, a redevelopment
4agency shall pay to the affected school and community college
5districts, in addition to the amounts paid pursuant to subdivisions
6(b) and (c), an amount equal to 14 percent times the percentage
7share of total property taxes collected that are allocated to each
8affected school or community college district, including any
9amount allocated to each district pursuant to Sections 97.03 and
1097.035 of the Revenue and Taxation Code times the total of the
11second adjusted tax increments received by the agency after the
12amount required to be deposited in the Low and Moderate Income
13Housing Fund has been
deducted. The second adjusted tax
14increments received by the agency shall be calculated by applying
15the tax rate against the amount of assessed value by which the
16current year assessed value exceeds the second adjusted base year
17assessed value. The second adjusted base year assessed value is
18the assessed value of the project area in the 30th fiscal year in
19which the agency receives tax increments.
20(e) (1) The Legislature finds and declares both of the following:
21(A) The payments made pursuant to this section are necessary
22in order to alleviate the financial burden and detriment that affected
23school and community college districts may incur as a result of
24the adoption of a redevelopment plan, and payments made pursuant
25to this section will benefit redevelopment project areas.
26(B) The payments
made pursuant to this section are the exclusive
27payments that are required to be made by a redevelopment agency
28to affected school and community college districts during the term
29of a redevelopment plan.
30(2) Notwithstanding any otherbegin delete provision ofend delete law, a redevelopment
31agency shall not be required, either directly or indirectly, as a
32measure to mitigate a significant environmental effect or as part
33of any settlement agreement or judgment brought in any action to
34contest the validity of a redevelopment plan pursuant to Section
3533501, to make any other payments to affected school or
36community college districts, or to pay for public facilities that will
37be owned or leased to an affected school or community college
38district.
P448 1(f) As used in this section, a “localbegin delete educationend deletebegin insert
educationalend insert
2 agency” includes a school district, a community college district,
3or a county office of education.
Section 34177 of the Health and Safety Code is
5amended to read:
Successor agencies are required to do all of the
7following:
8(a) Continue to make payments due for enforceable obligations.
9(1) On and after February 1, 2012, and until a Recognized
10Obligation Payment Schedule becomes operative, only payments
11required pursuant to an enforceable obligations payment schedule
12shall be made. The initial enforceable obligation payment schedule
13shall be the last schedule adopted by the redevelopment agency
14under Section 34169. However, payments associated with
15obligations excluded from the definition of enforceable obligations
16by paragraph (2) of subdivision (d) of Section 34171 shall be
17excluded from the enforceable obligations payment schedule and
18be removed from the last schedule adopted by the
redevelopment
19agency under Section 34169 prior to the successor agency adopting
20it as its enforceable obligations payment schedule pursuant to this
21subdivision. The enforceable obligation payment schedule may
22be amended by the successor agency at any public meeting and
23shall be subject to the approval of the oversight board as soon as
24the board has sufficient members to form a quorum. In recognition
25of the fact that the timing of the California Supreme Court’s ruling
26in the case California Redevelopment Association v. Matosantos
27(2011) 53 Cal.4th 231 delayed the preparation by successor
28agencies and the approval by oversight boards of the January 1,
292012, through June 30, 2012, Recognized Obligation Payment
30Schedule, a successor agency may amend the Enforceable
31Obligation Payment Schedule to authorize the continued payment
32of enforceable obligations until the time that the January 1, 2012,
33through June 30, 2012, Recognized Obligation Payment Schedule
34has been approved by the oversight board and by the
Department
35of Finance. The successor agency may utilize reasonable estimates
36and projections to support payment amounts for enforceable
37obligations if the successor agency submits appropriate supporting
38documentation of the basis for the estimate or projection to the
39Department of Finance and the auditor-controller.
P449 1(2) The Department of Finance and the Controller shall each
2have the authority to require any documents associated with the
3enforceable obligations to be provided to them in a manner of their
4choosing. Any taxing entity, the department, and the Controller
5shall each have standing to file a judicial action to prevent a
6violation under this part and to obtain injunctive or other
7appropriate relief.
8(3) Commencing on the date the Recognized Obligation Payment
9Schedule is valid pursuant to subdivision (l), only those payments
10listed in the Recognized Obligation Payment
Schedule may be
11made by the successor agency from the funds specified in the
12Recognized Obligation Payment Schedule. In addition, after it
13becomes valid, the Recognized Obligation Payment Schedule shall
14supersede the Statement of Indebtedness, which shall no longer
15be prepared nor have any effect under the Community
16Redevelopment Law (Part 1 (commencing with Section 33000)).
17(4) begin deleteNothing in the end deletebegin insertThe end insertact adding this partbegin delete is toend deletebegin insert shall notend insert be
18construed as preventing a successor agency, with the prior approval
19of the oversight board, as described in Section 34179, from
making
20payments for enforceable obligations from sources other than those
21listed in the Recognized Obligation Payment Schedule.
22(5) From February 1, 2012, to July 1, 2012, a successor agency
23begin delete shall have noend deletebegin insert does not haveend insert authority and is hereby prohibited
24from accelerating payment or making any lump-sum payments
25that are intended to prepay loans unlessbegin delete suchend deletebegin insert theend insert accelerated
26repayments were required prior to the effective date of this part.
27(b) Maintain reserves in the amount required by indentures,
28trust
indentures, or similar documents governing the issuance of
29outstanding redevelopment agency bonds.
30(c) Perform obligations required pursuant to any enforceable
31obligation.
32(d) Remit unencumbered balances of redevelopment agency
33funds to the county auditor-controller for distribution to the taxing
34entities, including, but not limited to, the unencumbered balance
35of the Low and Moderate Income Housing Fund of a former
36redevelopment agency. In making the distribution, the county
37auditor-controller shall utilize the same methodology for allocation
38and distribution of property tax revenues provided in Section
3934188.
P450 1(e) Dispose of assets and properties of the former redevelopment
2agency as directed by the oversight board; provided, however, that
3the oversight board may instead direct the successor agency to
4transfer
ownership of certain assets pursuant to subdivision (a) of
5Section 34181. The disposal is to be done expeditiously and in a
6manner aimed at maximizing value. Proceeds from asset sales and
7related funds that are no longer needed for approved development
8projects or to otherwise wind down the affairs of the agency, each
9as determined by the oversight board, shall be transferred to the
10county auditor-controller for distribution as property tax proceeds
11under Section 34188. The requirements of this subdivisionbegin delete shallend delete
12begin insert doend insert not apply to a successor agency that has been issued a finding
13of completion by the Department of Finance pursuant to Section
1434179.7.
15(f) Enforce all former redevelopment agency rights for the
16benefit of the taxing entities, including, but not
limited to,
17continuing to collect loans, rents, and other revenues that were due
18to the redevelopment agency.
19(g) Effectuate transfer of housing functions and assets to the
20appropriate entity designated pursuant to Section 34176.
21(h) Expeditiously wind down the affairs of the redevelopment
22agency pursuant to the provisions of this part and in accordance
23with the direction of the oversight board.
24(i) Continue to oversee development of properties until the
25contracted work has been completed or the contractual obligations
26of the former redevelopment agency can be transferred to other
27parties. Bond proceeds shall be used for the purposes for which
28bonds were sold unless the purposes can no longer be achieved,
29in which case, the proceeds may be used to defease the bonds.
30(j) Prepare a proposed administrative budget and submit it to
31the oversight board for its approval. The proposed administrative
32budget shall include all of the following:
33(1) Estimated amounts for successor agency administrative costs
34for the upcoming six-month fiscal period.
35(2) Proposed sources of payment for the costs identified in
36paragraph (1).
37(3) Proposals for arrangements for administrative and operations
38services provided by a city, county, city and county, or other entity.
39(k) Provide administrative cost estimates, from its approved
40administrative budget that are to be paid from property tax revenues
P451 1deposited in the Redevelopment Property Tax Trust Fund, to the
2county auditor-controller for each six-month fiscal period.
3(l) (1) Before each six-month fiscal period, prepare a
4Recognized Obligation Payment Schedule in accordance with the
5requirements of this paragraph. For each recognized obligation,
6the Recognized Obligation Payment Schedule shall identify one
7or more of the following sources of payment:
8(A) Low and Moderate Income Housing Fund.
9(B) Bond proceeds.
10(C) Reserve balances.
11(D) Administrative cost allowance.
12(E) The Redevelopment Property Tax Trust Fund, but only to
13the extent no other funding source is available or when payment
14from property tax revenues is required by an enforceable obligation
15or by the
provisions of this part.
16(F) Other revenue sources, including rents, concessions, asset
17sale proceeds, interest earnings, and any other revenues derived
18from the former redevelopment agency, as approved by the
19oversight board in accordance with this part.
20(2) A Recognized Obligation Payment Schedule shall not be
21deemed valid unless all of the following conditions have been met:
22(A) A Recognized Obligation Payment Schedule is prepared
23by the successor agency for the enforceable obligations of the
24former redevelopment agency. The initial schedule shall project
25the dates and amounts of scheduled payments for each enforceable
26obligation for the remainder of the time period during which the
27redevelopment agency would have been authorized to obligate
28property tax increment had thebegin delete aend delete
redevelopment agency not been
29dissolved.
30(B) The Recognized Obligation Payment Schedule is submitted
31to and duly approved by the oversight board. The successor agency
32shall submit a copy of the Recognized Obligation Payment
33Schedule to the county administrative officer, the county
34auditor-controller, and the Department of Finance at the same time
35that the successor agency submits the Recognized Obligation
36Payment Schedule to the oversight board for approval.
37(C) A copy of the approved Recognized Obligation Payment
38Schedule is submitted to the county auditor-controller, the
39Controller’s office, and the Department of Finance, and is posted
40on the successor agency’s Internet Web site.
P452 1(3) The Recognized Obligation Payment Schedule shall be
2forward looking to the next six months. The first Recognized
3
Obligation Payment Schedule shall be submitted to the Controller’s
4office and the Department of Finance by April 15, 2012, for the
5period of January 1, 2012, to June 30, 2012, inclusive. This
6Recognized Obligation Payment Schedule shall include all
7payments made by the former redevelopment agency between
8January 1, 2012, through January 31, 2012, and shall include all
9payments proposed to be made by the successor agency from
10February 1, 2012, through June 30, 2012. Former redevelopment
11agency enforceable obligation payments due, and reasonable or
12necessary administrative costs due or incurred, prior to January 1,
132012, shall be made from property tax revenues received in the
14spring of 2011 property tax distribution, and from other revenues
15and balances transferred to the successor agency.
16(m) The Recognized Obligation Payment Schedule for the period
17of January 1, 2013, to June 30, 2013, shall be submitted by the
18successor agency, after approval
by the oversight board, no later
19than September 1, 2012. Commencing with the Recognized
20Obligation Payment Schedule covering the period July 1, 2013,
21through December 31, 2013, successor agencies shall submit an
22oversight board-approved Recognized Obligation Payment
23Schedule to the Department of Finance and to the county
24auditor-controller no fewer than 90 days before the date of property
25tax distribution. The Department of Finance shall make its
26determination of the enforceable obligations and the amounts and
27funding sources of the enforceable obligations no later than 45
28days after the Recognized Obligation Payment Schedule is
29submitted. Within five business days of the department’s
30determination, a successor agency may request additional review
31by the department and an opportunity to meet and confer on
32disputed items. The meet and confer period may vary; an untimely
33submittal of a Recognized Obligation Payment Schedule may result
34in a meet and confer period of less than 30 days. The department
35shall
notify the successor agency and the county auditor-controllers
36as to the outcome of its review at least 15 days before the date of
37property tax distribution.
38(1) The successor agency shall submit a copy of the Recognized
39Obligation Payment Schedule to the Department of Finance
40electronically, and the successor agency shall complete the
P453 1Recognized Obligation Payment Schedule in the manner provided
2for by the department. A successor agencybegin delete shall beend deletebegin insert isend insert in
3noncompliance with this paragraph if it only submits to the
4department an electronic message or a letter stating that the
5oversight board has approved a Recognized Obligation Payment
6Schedule.
7(2) If a successor agency does not submit a
Recognized
8Obligation Payment Schedule by the deadlines provided in this
9subdivision, the city, county, or city and county that created the
10redevelopment agency shall be subject to a civil penalty equal to
11ten thousand dollars ($10,000) per day for every day the schedule
12is not submitted to the department. The civil penalty shall be paid
13to the county auditor-controller for allocation to the taxing entities
14under Section 34183. If a successor agency fails to submit a
15Recognized Obligation Payment Schedule by the deadline, any
16creditor of the successor agency or the Department of Finance or
17any affected taxing entity shall have standing to and may request
18a writ of mandate to require the successor agency to immediately
19perform this duty. Those actions may be filed only in the County
20of Sacramento and shall have priority over other civil matters.
21Additionally, if an agency does not submit a Recognized Obligation
22Payment Schedule within 10 days of the deadline, the maximum
23administrative cost allowance for that
period shall be reduced by
2425 percent.
25(3) If a successor agency fails to submit to the department an
26oversight board-approved Recognized Obligation Payment
27Schedule that complies with all requirements of this subdivision
28within five business days of the date upon which the Recognized
29Obligation Payment Schedule is to be used to determine the amount
30of property tax allocations, the department may determine if any
31amount should be withheld by the county auditor-controller for
32payments for enforceable obligations from distribution to taxing
33entities, pending approval of a Recognized Obligation Payment
34Schedule. The county auditor-controller shall distribute the portion
35of any of the sums withheld pursuant to this paragraph to the
36affected taxing entities in accordance with paragraph (4) of
37subdivision (a) of Section 34183 upon notice by the department
38that a portion of the withheld balances are in excess of the amount
39of enforceable obligations.
The county auditor-controller shall
40distribute withheld funds to the successor agency only in
P454 1accordance with a Recognized Obligation Payment Schedule
2approved by the department. County auditor-controllers shall lack
3the authority to withhold any other amounts from the allocations
4provided for under Section 34183 or 34188 unless required by a
5court order.
6(4) (A) The Recognized Obligation Payment Schedule payments
7required pursuant to this subdivision may be scheduled beyond
8the existing Recognized Obligation Payment Schedule cycle upon
9a showing that a lender requires cash on hand beyond the
10Recognized Obligation Payment Schedule cycle.
11(B) When a payment is shown to be due during the Recognized
12Obligation Payment Schedule period, but an invoice or other billing
13document has not yet been received, the successor agency may
14utilize reasonable estimates and
projections to support payment
15amounts for enforceable obligations if the successor agency submits
16appropriate supporting documentation of the basis for the estimate
17or projection to the department and the auditor-controller.
18(C) A Recognized Obligation Payment Schedule may also
19include appropriation of moneys from bonds subject to passage
20during the Recognized Obligation Payment Schedule cycle when
21an enforceable obligation requires the agency to issue the bonds
22and use the proceeds to pay for project expenditures.
23(n) Cause a postaudit of the financial transactions and records
24of the successor agency to be made at least annually by a certified
25public accountant.
Section 39945 of the Health and Safety Code is
27amended to read:
(a) For purposes of this chapter, “unsafe tire” means
29any tire considered unsafe in accordance with standard industry
30practices due to tire tread wear, tread irregularity, or damage.
31Examples include any tire with an exposed ply or cord, a sidewall
32crack, a bulge, a knot, or a ply separation.
33(b) For purposes of a regulation adopted pursuant to Division
3425.5 (commencing with Section 38500) that requires an automotive
35service provider to check and inflate a vehicle’s tires while
36performing automotive maintenance or repair service, a tire
37pressure gauge used by the provider to inflate a tire pursuant to
38that regulation shall be accurate within a range of plus or minus
39two pounds per square inch of pressure (2 psi).
P455 1(c) An automotive service provider shall not be required to
2check and inflate a vehicle’s tire pursuant to subdivision (b) if that
3tire is determined to be an unsafe tire.
4(d) Thisbegin delete sectionend deletebegin insert chapterend insert shall remain in effect only until January
51, 2018, and as of that date is repealed, unless a later enacted
6statute, that is enacted before January 1, 2018, deletes or extends
7that date.
Section 42301.16 of the Health and Safety Code is
9amended to read:
(a) In addition to complying with the requirements
11of this chapter, a permit system established by a district pursuant
12to Section 42300 shall ensure that any agricultural source that is
13required to obtain a permit pursuant to Title I (42 U.S.C. Sec. 7401
14et seq.) or Title V (42 U.S.C. Sec. 7661 et seq.) of the federal Clean
15Air Act is required by district regulation to obtain a permit in a
16manner that is consistent with the federal requirements.
17(b) Except as provided in subdivision (c), a district shall require
18an agricultural source of air pollution to obtain a permit unless it
19makes all of the following findings in a public hearing:
20(1) The source is
subject to a permit requirement pursuant to
21Section 40724.6.
22(2) A permit is not necessary to impose or enforce reductions
23ofbegin delete commissionsend deletebegin insert emissionsend insert of air pollutants that the districtbegin delete showend delete
24begin insert showsend insert cause or contribute to the violation ofbegin insert aend insert state or federal
25ambient air quality standard.
26(3) The requirement for the source or category of sources to
27obtain a permit would impose a burden on those sources
that is
28significantly more burdensome than permits required for other
29similar sources of air pollution.
30(c) Prior to requiring a permit for an agricultural source of air
31pollution with actual emissions that are less than one-half of any
32applicable emissions threshold for a major source in thebegin delete district,end delete
33begin insert districtend insert for any air contaminant, but excluding fugitive dust, a
34district shall, in a public hearing, make all of the following
35findings:
36(1) The source is not subject to a permit requirement pursuant
37to Section 40724.6.
38(2) A permit is necessary to impose or enforce reductions of
39begin delete emissionend deletebegin insert
emissionsend insert of air pollutants that the districtbegin delete showend deletebegin insert
showsend insert
P456 1 cause or contribute to a violation of a state or federal ambient air
2quality standard.
3(3) The requirement for a source or category of sources to obtain
4a permit would not impose a burden on those sources that is
5significantly more burdensome than permits required for other
6similar sources of air pollution.
Section 44246 of the Health and Safety Code is
8repealed.
(a) For each school district that is required to submit
10a trip reduction plan to the south coast district, the south coast
11district shall waive any fee that would otherwise be imposed for
12the submission or review of a trip reduction plan or for the
13submission or review of any alternative compliance plan, and shall
14instead recover that amount from the funds collected by the south
15coast district pursuant to Section 44243.
16(b) The south coast district shall annually calculate the amount
17necessary to recover the costs of school district plan reviews, and
18the Mobile Source Air Pollution Reduction Review Committee
19shall allocate that amount to the south coast district from the funds
20collected pursuant to subdivision (c) of Section 44243.
21(c) This section shall remain in effect until January 1, 2010, or
22until south coast district Rule 2202 is repealed in its entirety,
23whichever first occurs, unless a later enacted statute that is enacted
24before that date and before south coast district Rule 2202 is
25repealed, deletes or extends that date.
Section 44525.5 of the Health and Safety Code is
27repealed.
(a) The authority may also charge reasonable
29application and project fees to reimburse the authority for costs
30incurred in administering applications for grants and loans
31authorized by subdivision (e) of Section 44526.
32(b) This section shall not become operative if Senate Bill 1986
33of the 1999-2000 Regular Session is enacted after Assembly Bill
34779 of the 1999-2000 Regular Session and adds subdivision (g)
35to Section 44526.
Section 44525.7 of the Health and Safety Code, as
37amended by Section 11 of Chapter 643 of the Statutes of 2009, is
38repealed.
Commencing in 2002, and annually thereafter, the
2authority shall submit a report to the Legislature regarding the
3program described in subdivision (h) of Section 44526.
Section 50561 of the Health and Safety Code is
5amended to read:
(a) The department may approve an extension of an
7existing rental housing development loan, the reinstatement of a
8qualifying unpaid matured loan, the subordination of a department
9loan to new debt, or an investment of tax credit equity as long as
10the rental housing development is being operated in a manner
11consistent with the regulatory agreement and the development
12requires an extension in order to continue to operate in a manner
13consistent with this chapter. Each extension shall be for a period
14of not less than 10 years and each extension shall not exceed 55
15years, or 58 years if needed to match the term of tax credit
16restrictions. The interest rate shall be 3 percent simple interest. All
17loan payments shall be deferred for the full term of the loan, except
18for residual receipts payments. These residual receipts payments
19shall
be structured to avoid reducing the amount of payments on
20local public agency loans resulting solely from changes in the
21payment terms on the department’s loan, and not resulting from
22fees or other payments to the borrower, and shall otherwise be
23consistent with the provisions of the department’s Uniform
24Multifamily Regulations or successor regulations. The department
25may charge a monitoring fee to cover the aggregate monitoring
26costs it incurs in years that the loan is extended and charge a
27transaction fee to cover its costs for processing restructuring
28transactions. The department may waive or defer some or all fees,
29if it determines that a particular development or class of
30developments does not have the ability to make these payments.
31In determining the fees and payments to be charged, the department
32shall seek to share monitoring activities with other regulatory
33agencies and to minimize the impact on tenants with the lowest
34incomes and on the capacity of the developments to support private
35debt or
secure tax credit investments.
36(b) To the minimum extent necessary to support new debt to
37pay for rehabilitation, rents for assisted units in these developments
38may be adjusted. This rehabilitation shall be determined by the
39department to be demonstrably necessary, based on third-party
40assessment and on the department’s own inspection. Assisted units
P458 1in developments with a specific, department-approved plan to
2undertake the necessary rehabilitation, at a level that equals or
3exceeds the minimum per-unit rehabilitation cost standards under
4the low-income housing tax credit program, may be adjusted as
5follows:
6(1) For developments originally financed under the bond-funded
7component of the Rental Housing Construction Program pursuant
8to Section 50771.1, and the Family Housing Demonstration
9Program, rents may be increased up to a maximum of 30 percent
10of 60 percent of area median
income, for units designated in the
11development’s original regulatory agreement as lower income
12units, and up to a maximum of 30 percent of 35 percent of area
13median income, for units designated in the development’s original
14regulatory agreement as very low income units.
15(2) For developments originally financed under other programs,
16rents for at least 35 percent of the assisted units, or as specified in
17the original regulatory agreement governing the development,
18whichever is greater, shall be restricted to the midlevel target used
19by the Multifamily Housing Program. Rents for the balance of the
20assisted units may be increased up to a maximum of 30 percent of
2160 percent of area median income. For purposes of this paragraph,
22“midlevel target used by the Multifamily Housing Program” shall
23mean either of the following:
24(A) For counties with an area median income of 110 percent or
25
less of state median income, it shall mean 30 percent of 30 percent
26of state median income, expressed as a percentage of area median
27income.
28(B) For counties with an area median income that exceeds 110
29percent of the state median income, it shallbegin delete mean,end deletebegin insert meanend insert 30 percent
30of 35 percent of state median income, expressed as a percentage
31of area median income.
32(c) Rent increases for tenants living in assisted units at the time
33of restructuring pursuant to this chapter shall be limited as follows:
34(1) For existing tenants with incomes not exceeding 35 percent
35of area median income, increases shall be limited to 5 percent per
36year, until
the rents reach the levels set under subdivision (b).
37(2) For existing tenants with incomes exceeding 35 percent of
38area median income, increases shall be limited to 10 percent per
39year, until they reach the levels specified in paragraphs (1) and (2)
40of subdivision (b) of Section 50561.
P459 1(3) It is the intent of the Legislature that rent increases for
2existing tenants authorized by this subdivision shall not be greater
3than necessary to ensure the financial feasibility of the project.
4The projected maximum rent for tenants in assisted units, as
5determined by subdivision (b), shall not exceed 50 percent of the
6household’s actual income. This requirement shall be applied using
7maximum rent levels and household incomes determined at the
8time of restructuring or at the time of the department’s approval
9of the restructuring.
10(4) If the refinance of a loan results in a rent increase, the project
11sponsor shall provide tenants with the following notifications:
12(A) Notice six months prior to the scheduled rent increase with
13an estimate of the amount of the increase.
14(B) Notice 90 days prior to the actual increase with the exact
15amount of the new rent.
16(d) If existing tenants move, the rent for these units may be
17increased immediately up to the level specified in paragraphs (1)
18and (2) of subdivision (b). The income limit for new tenants shall
19correspond with the rent limit set pursuant to paragraphs (1) and
20(2) of subdivision (b).
21(e) Once rents achieve the levels set forth in paragraphs (1) and
22(2) of subdivision (b), income levels and rent limits shall be
23
calculated consistent with the calculation methodology used under
24the Low Income Housing Tax Credit program and the Multifamily
25Housing Program, and rent increases shall be based on increases
26in the area median income.
27(f) Eligible households displaced as a result of rehabilitation
28pursuant to this section shall be accorded first priority in occupying
29comparable units in the development from which they were
30displaced, subsequent to rehabilitation. Tenants of rental housing
31developments repaired with assistance provided under this chapter
32who are temporarily or permanently displaced as a result of
33rehabilitation or other repair work, shall be entitled to relocation
34benefits pursuant to, and subject to, the requirements of Section
357260 of the Government Code. Sponsors of assisted rental housing
36developments shall be responsible for providing the benefits and
37assistance. The costs of the benefits and the assistance provided
38to tenants shall be
eligible for funding by a loan provided pursuant
39to this section.
P460 1(g) The guidelines adopted by the department pursuant to
2subdivision (h) of Section 50560 shall be patterned after the
3regulations governing the Multifamily Housing Program, including
4the Uniform Multifamily Regulations, except that the department
5may adopt different standards for the following factors:
6(1) Commercial vacancy loss assumptions must reflect project
7operating history.
8(2) Debt service coverage ratios.
9(3) Payment terms and principal amount of senior debt,
10considering financial market conditions, including costs and
11department risk, as determined by the department.
12(4) Developer fee limitations shall be
consistent with California
13Tax Credit Allocation Committee regulations for inclusion in the
14basis for projects receiving 9 percent tax credits, for projects
15receiving the special rent increases contemplated by this chapter,
16and, consistent with the requirements of other funding sources, for
17projects not receiving special rent increases.
18(5) Replacement reserve deposit amounts must be based on
19projected costs over 20 years, adjusted for inflation, and as shown
20in an independent replacement reserve analysis.
21(h) It is the intent of the Legislature in enacting this section that
22the department shall manage its reserves for the original Rental
23Housing Construction Program in a manner that will allow for the
24continuation of benefits to current low-income tenants for the
25longest period of time possible up to the term of the original
26regulatory agreement or the depletion of the annuity
funds,
27whichever occurs first. Accordingly, rents for those households in
28units subsidized by the annuity fund established pursuant to Section
2950748 may be increased to 30 percent of household income.begin delete Anyend delete
30begin insert Aend insert household affected by the rent increase permitted by this
31subdivision shall be given at least 90 days advanced notice of the
32increase.
33(i) (1) The department shall, within available resources, post
34on its Internet Web site information regarding household incomes
35and rents for developments approved for restructuring.
36(2) The information shall be provided within six months of a
37restructuring and, thereafter, no less than every three years.
38(3) The information shall include the following or similar
39information:
P461 1(A) The monthly rent of each household at the time of
2restructuring.
3(B) The current monthly rent of each household.
4(C) The annual income of each household as a percentage of
5area median income at the time of restructuring.
6(D) The current income of each household as a percentage of
7area median income.
Section 51505 of the Health and Safety Code is
9amended to read:
(a) In addition to the downpayment assistance program
11authorized by Section 51504, and notwithstanding any provision
12of Section 51504 to the contrary, the agency shall provide
13downpayment assistance from the funds set aside pursuant to
14subparagraph (D) of paragraph (7) of subdivision (a) of Section
1553533 for the purposes of the portion of the Extra Credit Teacher
16Home Purchase Program provided for in subdivision (g) of Section
178869.84 of the Government Code and any other school personnel
18home ownership assistance programs as set forth by the California
19Debt Limit Allocation Committee, as operated by the agency.
20Notwithstanding the foregoing, the agency may, but is not required
21to, provide downpayment assistance pursuant to this section to any
22local issuer participating in the Extra Credit Teacher Home
23Purchase Program and any
other school personnel home ownership
24assistance programs as set forth by the California Debt Limit
25Allocation Committee.
26(b) (1) Downpayment assistance for purposes of this section
27shall be subject to, and shall meet the requirements of, the Extra
28Credit Teacher Home Purchase Program and any other school
29personnel home ownership programs as set forth by the California
30Debt Limit Allocation Committee, and shall include, but not be
31limited to, deferred payment, low interest rate loans.
32(2) Except as provided in paragraphs (3) and (5), payment of
33principal and interest is deferred until the time that the home is
34sold or refinanced.
35(3) The agency may, in its discretion, permit the downpayment
36assistance loan to be subordinated to refinancing if it determines
37that the borrower has demonstrated
hardship, subordination is
38required to avoid foreclosure, and the new loan meets the agency’s
39underwriting requirements. The agency may permit subordination
40on those terms and conditions as it determines are reasonable, but
P462 1subordination is not permitted if the borrower has sufficient equity
2to repay the loan.
3(4) This downpayment assistance shall meet the requirements
4of paragraph (3) of, and subparagraph (A) of paragraph (4)begin delete ofend deletebegin insert of,end insert
5 subdivision (a)begin delete of,end deletebegin insert ofend insert Section 51504.
6(5) The amount of the downpayment
assistance shall not be due
7and payable upon sale of the home if the first mortgage loan is
8insured by the Federal Housing Administration (FHA) or if the
9first mortgage loan is, or has been, transferred to the FHA, or if
10the requirement is otherwise contrary to regulations of the United
11States Department of Housing and Urban Development governing
12FHA insured first mortgage loans.
13(c) Loans made pursuant to this section may include a provision
14whereby interest, principal, or both, of the loan is forgiven upon
15conditions to be established by the agency, or any other provision
16designed to carry out the purposes of the Extra Credit Teacher
17Home Purchase Program and any other school personnel home
18ownership programs as set forth by the California Debt Limit
19Allocation Committee.
20(d) Downpayment assistance pursuant to this section shall not
21exceed the greater of seven thousand five
hundred dollars ($7,500)
22or 3 percent of the home sales price. However, the agency may,
23with the concurrence of the California Debt Limit Allocation
24Committee, establish higher assistance limitsbegin delete whereend deletebegin insert asend insert necessary
25to ensure sufficient assistance to allow program participation in
26high cost areas.
The heading of Chapter 3 (commencing with Section
28101000) of Part 2 of Division 101 of the Health and Safety Code
29 is repealed.
30
The heading of Article 5 (commencing with Section
35101150) of Chapter 2 of Part 3 of Division 101 of the Health and
36Safety Code, as added by Section 3 of Chapter 415 of the Statutes
37of 1995, is repealed.
38
The heading of Chapter 4 (commencing with Section
2101325) of Part 3 of Division 101 of the Health and Safety Code,
3as added by Section 3 of Chapter 415 of the Statutes of 1995, is
4repealed.
5
Section 101661 of the Health and Safety Code is
9amended to read:
(a) The authority, in addition to any other powers
11granted to the authority pursuant to this chapter, shall have the
12following powers:
13(1) To have the duties, privileges, immunities, rights, liabilities,
14and limitations of a local unit of government within the state.
15(2) To have perpetual existence.
16(3) To adopt, have, and use a seal, and to alter it at its pleasure.
17(4) To sue and be sued in the name of the authority in all actions
18and proceedings in all courts and tribunals of competent
19jurisdiction.
20(5) To
purchase, lease, trade, exchange, or otherwise acquire,
21maintain, hold, improve, mortgage, lease, sell, and dispose of real
22and personal property of any kind necessary or convenient to
23perform its functions and fully exercise its powers.
24(6) To appoint and employ a chief executive officer and other
25officers and employees that may be necessary or appropriate,
26including legal counsel, to establish their compensation, provide
27for their health, retirement, and other employment benefits, and
28to define the power and duties of officers and employees.
29(7) (A) To incur indebtedness and to borrow money and issue
30bonds evidencing the same, including the authority to issue, from
31time to time, notes and revenue bonds in principal amounts that
32the authority determines to be necessary to provide sufficient funds
33for achieving any of its purposes, including, but not limited
to,
34assumption or refinancing of debt service for capital projects
35eligible for Medi-Cal supplemental payments pursuant to Section
3614085.5 of the Welfare and Institutions Code, the payment of
37interest on notes and bonds of the authority, the establishment of
38reserves to secure these notes and bonds, and all other expenditures
39of the authority incident to and necessary or convenient to carry
40out its purposes and powers.
P464 1(B) Any notes, bonds, or other securities issued, and the income
2from them, including any profit from the sale thereof, shall at all
3times be free from taxation by the state or any agency, political
4subdivision, or instrumentality of the state.
5(C) Notwithstanding the provisions of subparagraph (A), for
6any indebtedness, notes, bonds, or other securities that require
7voter approval pursuant to state law, the prior approval of the board
8of supervisors shall be
required. Notwithstanding the required prior
9approval of the board of supervisors, any indebtedness incurred,
10or notes, bonds, or other securities issued pursuant to this
11subparagraph shall be the indebtedness, notes, bonds, or securities
12of the authority and not of the county, and the credit of the county
13shall not be pledged or relied upon in any manner in order to incur
14the indebtedness, or issue the notes, bonds, or other securities,
15unless the board of supervisors explicitly authorizes the use of the
16county’s credit. The authority shall reimburse the county for all
17costs associated with the county’s consideration of the
18indebtedness, notes, bonds, or securities, and the authority shall
19defend, indemnify, and hold harmless the county from any and all
20liability, costs, or expenses arising from or related to the
21indebtedness, notes, bonds, or securities.
22(8) To pursue its own credit rating.
23(9) To enter into any contract or agreement consistent with this
24chapter or the laws of this state, and to authorize the chief executive
25officer to enter into contracts, execute all instruments, and do all
26things necessary or convenient in the exercise of the powers granted
27in this chapter, and to secure the payment of bonds.
28(10) To purchase supplies, equipment, materials, property, and
29services.
30(11) To establish policies relating to its purposes.
31(12) To acquire or contract to acquire, rights-of-way, easements,
32privileges, and property, and to construct, equip, maintain, and
33operate any and all works or improvements wherever located that
34are necessary, convenient, or proper to carry out any of the
35provisions, objects, or purposes of this chapter, and to complete,
36extend, add to, repair, or otherwise
improve any works or
37improvements acquired by it.
38(13) To contract for and to accept gifts, grants, and loans of
39funds, property, or other aid in any form from the federal
40government, the state, a state agency, or other source, or
P465 1combination thereof, and to comply, subject to this chapter, with
2the terms and conditions thereof.
3(14) To invest surplus money in its own treasury, manage
4investments, and engage third-party investment managers, in
5accordance with state law.
6(15) To arrange for guarantees or insurance of its bonds, notes,
7or other obligations by the federal or state government or by a
8private insurer, and to pay the premiums thereof.
9(16) To engage in managed care contracting, joint ventures,
10affiliations with other health care facilities,
other health care
11providers and payers, management agreements, or to participate
12in alliances, purchasing consortia, health insurance pools,
13accountable care organizations, alternative delivery systems, or
14other cooperative arrangements, with any public or private entity.
15(17) To enter into joint powers agreements pursuant to Chapter
165 (commencing with Section 6500) of Division 7 of Title 1 of the
17Government Code.
18(18) To establish nonprofit, for profit, or other entities necessary
19to carry out the duties of the authority.
20(19) To elect to transfer funds to the state and incur certified
21public expenditures in support of the Medi-Cal program and other
22programs for which federal financial participation is available.
23(20) To use a computerized management
information system,
24including an electronic health records system, in connection with
25the administration of its facilities.
26(21) To request that the board of supervisors levy a tax on behalf
27of the authority. If the board of supervisors approves the proposal
28to levy the tax, the board shall call the election to seek voter
29approval and place the appropriate measure on the ballot for that
30election. The proceeds of these taxes shall be tax proceeds of the
31authority and not of the county. The authority shall reimburse the
32county for all costs associated with the county’s consideration of
33these taxes, and shall defend, indemnify, and hold harmless the
34county from any liability, costs, or expenses arising from or related
35to the imposition of these taxes.
36(22) To contract with the county for the provision of indigent
37care services on behalf of the county. The contract shall specify
38that
county policies consistent with the county’s obligations under
39Section 17000 of the Welfare and Institutions Code shall be
40applicable. Notwithstanding any other provision of this chapter,
P466 1the authority shall not undertake any of the county’s obligations
2under Section 17000 of the Welfare and Institutions Code, nor
3shall the authority have an entitlement to receive any revenue for
4the discharge of the county’s obligations, without a written
5agreement with the county.
6(23) To engage in other activities that may be in the best interests
7of the authority and the persons served by the authority, as
8determined by the board of trustees, in order to respond to changes
9in the health care industry.
10(b) The authority shall conform to the following requirements:
11(1) Be a government entity separate and apart for all purposes
12from
the county and any other public entity, and shall not be
13considered to be an agency, division, or department of the county
14or any other public entity. The authority shall not be governed by,
15or subject to, the policies or operational rules of the county or any
16other public entity.
17(2) Be subject to state and federal taxation laws that are
18applicable to public entities generally, except that the authority
19may, to the extent permitted by federal law, apply for an exemption
20from social security taxation if there is a mutual agreement with
21the exclusive representatives of the affected employees.
22(3) Comply with the Meyers-Milias-Brown Act (Chapter 10
23(commencing with Section 3500) of Division 4 of Title 1 of the
24Government Code), the Public Records Act (Chapter 3.5
25(commencing with Section 6250) of Division 7 of Title 1 of the
26Government Code), and the Ralph M. Brown Act (Chapterbegin delete 10end deletebegin insert
9end insert
27 (commencing with Sectionbegin delete 3500)end deletebegin insert 54950)end insert of Divisionbegin delete 4end deletebegin insert 2end insert of Title
28begin delete 1end deletebegin insert 5end insert of the Government Code).
29(4) To the extent the authority is permitted by federal law to
30participate in the Public Employees’ Retirement System, assume
31the assets and liabilities for Public Employees’ Retirement System
32benefits, consistent with the requirements of Section
20508 and
33other applicable provisions of Part 3 (commencing with Section
3420000) of Division 5 of Title 2 of the Government Code and
35assume workers’ compensation liabilities and other employee
36benefits and liabilities with respect to employees of the authority,
37unless otherwise agreed to by the authority, the county, and the
38governing board.
39(5) Carry professional and general liability insurance or
40programs to the extent sufficient to cover its activities.
P467 1(6) Comply with the requirements of Sections 53260 and 53261
2of the Government Code.
3(7) Meet all local, state, and federal data reporting requirements.
4(8) Be subject to the jurisdiction of the Public Employment
5Relations Board.
6(c) Open
sessions of the authoritybegin delete shallend delete constitute official
7proceedings authorized by law within the meaning of Section 47
8of the Civil Code. The privileges set forth in that section with
9respect to official proceedingsbegin delete shallend delete
apply to open sessions of the
10authority.
11(d) The authoritybegin delete shall beend deletebegin insert isend insert a public agency for purposes of
12eligibility with respect to grants and other funding and loan
13guarantee programs. Contributions to the authoritybegin delete shall beend deletebegin insert areend insert
14 tax deductible to the extent permitted by state and federal law.
15Nonproprietary income of the authoritybegin delete shall beend deletebegin insert isend insert exempt from
16state
income taxation.
17(e) The authoritybegin delete shallend deletebegin insert isend insert notbegin delete beend delete a “person” subject to suit under
18the Cartwright Act (Chapter 2 (commencing with Section 16700)
19of Part 2 of Division 7 of the Business and Professions Code).
20(f) The statutory authority of a board of supervisors to prescribe
21rules that authorize a county hospital to integrate its services with
22those of other providers into a system of community service that
23offers free choice of hospitals to those requiring hospital care, as
24set forth in Section 14000.2 of the Welfare and Institutions Code,
25begin delete shallend delete
apply to the authority and the board of trustees.
26(g) Unless otherwise agreed to by the authority and the board
27of supervisors, or the authority and a governing board, an obligation
28of the authority, statutory, contractual or otherwise,begin delete shall beend deletebegin insert isend insert the
29obligation solely of the authority andbegin delete shallend delete notbegin delete be end deletethe obligation
30of the county or any other entity, and any contract executed by
31and between the county and the authority, or any other entity and
32the authority, shall contain a provision that liabilities or obligations
33of the authority with respect to its activities pursuant to
the contract
34shall be the liabilities or obligations of the authority and shall not
35be or become the liabilities or obligations of the county or the other
36entity, respectively.
37(h) An obligation of the authority, statutory, contractual or
38otherwise,begin delete shall beend deletebegin insert isend insert the obligation solely of the authority and
39begin delete shallend delete notbegin delete beend delete the obligation of the state.
P468 1(i) In the event of a change of license ownership, the board of
2trustees shall comply with the obligations of governing bodies of
3general acute care hospitals generally as set forth in
Section 70701
4of Title 22 of the California Code of Regulations, as currently
5written or subsequently amended, as well as the terms and
6conditions of the license. The authoritybegin delete shall beend deletebegin insert isend insert the responsible
7party with respect to compliance with these obligations, terms,
8and conditions.
9(j) (1) Provisions of the Evidence Code, the Government Code,
10including the Public Records Act (Chapter 3.5 (commencing with
11Section 6250) of Division 7 of Title 1 of the Government Code),
12the Civil Code, the Business and Professions Code, and other
13applicable law pertaining to the confidentiality of peer review
14activities of peer review bodiesbegin delete shallend delete apply to the peer
review
15activities of the authority. Peer review proceedingsbegin delete shallend delete constitute
16an official proceeding authorized by law within the meaning of
17Section 47 of the Civil Code and those privileges set forth in that
18section with respect to official proceedingsbegin delete shallend delete apply to peer
19review proceedings of the authority. If the authority is required by
20law or contractual obligation to submit to the state or federal
21government peer review information or information relevant to
22the credentialing of a participating provider, that submissionbegin delete shallend delete
23begin insert doesend insert not constitute a waiver of confidentiality. The laws pertaining
24to the confidentiality of peer review activities shall be
together
25construed as extending, to the extent permitted by law, the
26maximum degree of protection of confidentiality.
27(2) Notwithstanding any other law, Section 1461begin delete shall applyend delete
28begin insert appliesend insert to hearings on reports of hospital medical audit or quality
29assurance committees.
30(k) (1) begin deleteAny end deletebegin insertA end inserttransfer by the county to the authority, or by the
31governing board to the authority, of the maintenance, operation,
32and management or ownership of the medical center or the other
33health care facility,
respectively, whether or not the transfer
34includes the surrendering by the county or the governing board of
35any existing general acute care hospital license and corresponding
36application for a change of ownership of the license,begin delete shallend deletebegin insert doesend insert
37 not affect the eligibility of the county or the governing board to
38undertake, andbegin delete shall authorizeend deletebegin insert authorizesend insert the authority, subject to
39applicable requirements, to do, any of the following:
P469 1(A) With the written consent of the county, participate in and
2receive allocations pursuant to the California Health Care for
3Indigents Program
pursuant to Chapter 5 (commencing with
4Section 16940) of Part 4.7 of Division 9 of the Welfare and
5Institutions Code, or similar programs, as may be identified or
6earmarked by the county for indigent health care services of the
7type provided by the medical center.
8(B) With the written consent of the county, participate in and
9receive allocations of local revenue fund amounts provided
10pursuant to Chapter 6 (commencing with Section 17600) of Part
115 of Division 9 of the Welfare and Institutions Code as may be
12identified or earmarked by the county for indigent health care
13services of the type provided by the medical center.
14(C) Participate in the financing of, and receive, Medicaid
15disproportionate share hospital payments available to a county
16hospital or designated public hospital, or any other successor or
17modified payment or funding that is intended to assist hospitals
18that serve a
disproportionate share of low-income patients with
19special needs. The allocation of Medicaid disproportionate share
20hospital payments shall be made in consultation with the State
21Department of Health Care Services and other designated safety
22net hospitals.
23(D) Participate in the financing of, and receive, Medi-Cal
24supplemental reimbursements, including, but not limited to,
25payments made pursuant to Sections 14105.96, 14105.965,
2614166.4, and 14182.15 of the Welfare and Institutions Code,
27payments described in paragraph (4) of subdivision (b) of Section
2814301.4 of the Welfare and Institutions Code, and payments made
29available to a county provider or designated public hospital, or
30governmental entity with which it is affiliated, under any other
31successor or modified Medicaid payment system.
32(E) Participate in the financing of, and receive, safety net care
33pool funding, stabilization
funding, delivery system reform
34incentive pool payments, and any other funding available to a
35county provider or designated public hospital, or governmental
36entities with which it is affiliated under the Medicaid demonstration
37project authorized pursuant to Article 5.2 (commencing with
38Section 14166) and Article 5.4 (commencing with Section 14180)
39of Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions
40Code, or under any other successor or modified Medicaid
P470 1demonstration project or Medicaid payment system. The allocation
2of safety net care pool funds shall be made in consultation with
3the State Department of Health Care Services and other designated
4safety net hospitals.
5(F) Participate in the financing, administration, and provision
6of services under the Low Income Health Program authorized
7pursuant to Part 3.6 (commencing with Section 15909) of Division
89 of the Welfare and Institutions Code, or under any other successor
9or
modified Medicaid demonstration project or Medicaid payment
10system if the authority enters into an agreement with the county
11concerning the provision of services by, and payment for these
12services to, the county.
13(G) Participate in and receive direct grant and payment
14allocations pursuant to Article 5.228 (commencing with Section
1514169.1) of Chapter 7 of Part 3 of Division 9 of the Welfare and
16Institutions Code, or under any other successor or modified direct
17grant and payment systems funded by hospital or other provider
18fee assessments.
19(H) Receive Medi-Cal capital supplements pursuant to Section
2014085.5 of the Welfare and Institutions Code. Notwithstanding
21any other provision of law, supplemental payments shall be made
22to the medical center under Section 14085.5 of the Welfare and
23Institutions Code for the debt service costs incurred by the county,
24and, if applicable, by the
authority to the extent that debt service
25responsibility is refinanced, transferred to, or otherwise assumed
26by, directly or indirectly, the authority.
27(I) Receive any other funds that would otherwise be available
28to a county provider or designated public hospital, or governmental
29entity with which it is affiliated.
30(2) A transfer described in paragraph (1) shall not otherwise
31disqualify the county or the governing board, or in the case of a
32change in license ownership, the authority, from participating in
33any of the following:
34(A) Local, state, and federal funding sources either specific to
35county or district hospitals, county or district ambulatory care
36clinics, designated public hospitals, or government entities with
37which they are affiliated, for which there are special provisions
38specific to those hospitals,
ambulatory care clinics, or government
39entities.
P471 1(B) Funding programs in which the county or the governing
2board, by themselves or on behalf of the medical center or the
3other health care facility, respectively, had participated prior to
4the creation of the authority, or would otherwise be qualified to
5participate in had the authority not been created, and the
6maintenance, operation, and management or ownership of the
7medical center and the other health care facility not been transferred
8by the county and the governing board to the authority pursuant
9to this chapter.
10(l) The authority, the county, and the governing board, or any
11combination thereof, may engage in marketing, advertising, and
12promotion of the medical and health care services made available
13to the community by the authority.
14(m) The board of trusteesbegin delete shall haveend deletebegin insert
hasend insert authority over
15procurement and contracts for the authority. The board of trustees
16shall adopt written rules, regulations, and procedures with regard
17to these functions. Contracts by and between the authority and any
18public agency, and contracts by and between the authority and
19providers of health care, goods, or services, may be let on a nonbid
20basis and shall be exempt from Chapter 2 (commencing with
21Section 10290) of Part 2 of Division 2 of the Public Contract Code.
22Notwithstanding any other provision of this section, the authority
23shall not subcontract work performed by classifications represented
24by employee organizations without mutual agreement between the
25authority and the exclusive representatives, except that a
26subcontract entered into prior to the formation of the authority
27may remain in effect until its termination or completion and may
28be modified or renewed to a later termination or completion date
29upon agreement between the authority and the exclusive
30
representatives of the affected classifications.
31(n) The authority shall be responsible for human resource
32functions, including, but not limited to, position classification,
33compensation, recruitment, selection, hiring, discipline,
34termination, grievance, equal opportunity, performance
35management, probationary periods, training, promotion, and
36maintenance of records. The board of trustees shall adopt written
37rules, regulations, and procedures with regard to these functions.
38Until the time that the board of trustees adopts its own rules,
39regulations, or procedures with regard to these functions, the
40existing rules, regulations, and procedures set forth in any
P472 1memorandum of understanding described inbegin delete subparagraph (D) ofend delete
2
paragraphbegin delete (1)end deletebegin insert
(3)end insert of subdivision (d) of Section 101658begin delete shallend delete apply.
3If the memoranda do not provide for the exercise of these functions,
4the rules, regulations, and procedures of the countybegin delete shallend delete apply.
5(o) The authority may contract with the county or the governing
6board for services and personnel upon mutually agreeable terms.
7(p) Notwithstanding Article 4.7 (commencing with Section
81125) of Chapter 1 of Division 4 of Title 1 of the Government
9Code, related to incompatible activities, a member of the
10authority’s administrative staff shall not be considered to be
11engaged in activities inconsistent and incompatible with his or her
12duties as a result of prior employment or affiliation with
the county
13or the governing board.
14(q) The board of trustees and the officers and employees of the
15authority are public employees for purposes of Division 3.6
16(commencing with Section 810) of Title 1 of the Government
17Code, relating to claims and actions against public entities and
18public employees, and shall be protected by the immunities
19applicable to public entities and public employees governed by
20Part 2 (commencing with Section 814) of Division 3.6 of Title 1
21of the Government Code, except as provided by other statutes or
22regulations that apply expressly to the authority.
23(r) Except for Part 3 (commencing with Section 20000) of
24Division 5 of Title 2 of the Government Code, this chapter shall
25prevail over any inconsistent statutes governing employees of the
26authority, including, but not limited to, the Meyers-Milias-Brown
27Act (Chapter 10 (commencing with Section 3500) of
Division 1
28of Title 1 of the Government Code).
Section 101850 of the Health and Safety Code is
30amended to read:
The Legislature finds and declares the following:
32(a) (1) Due to the challenges facing the Alameda Health System
33arising from changes in the public and private health industries,
34the Alameda County Board of Supervisors has determined that a
35transfer of governance of the Alameda Health System to an
36independent governing body, a hospital authority, is needed to
37improve the efficiency, effectiveness, and economy of the
38community health services provided at the medical center. The
39board of supervisors has further determined that the creation of an
40independent hospital authority strictly and exclusively dedicated
P473 1to the management, administration, and control of the medical
2center, in a manner consistent with the county’s obligations under
3Section 17000 of the Welfare
and Institutions Code, is the best
4way to fulfill its commitment to the medically indigent, special
5needs, and general populations of Alameda County. To accomplish
6this, it is necessary that the board of supervisors be given authority
7to create a hospital authority. Because there is no general law under
8which this authority could be formed, the adoption of a special act
9and the formation of a special authority is required.
10(2) The following definitionsbegin delete shallend delete apply for purposes of this
11section:
12(A) “The county” means the County of Alameda.
13(B) “Governing board” means the governing body of the hospital
14authority.
15(C) “Hospital authority” means the separate public agency
16
established by the Board of Supervisors of Alameda County to
17manage, administer, and control the Alameda Health System.
18(D) “Medical center” means the Alameda Health System, which
19was formerly known as the Alameda County Medical Center.
20(b) The board of supervisors of the county may, by ordinance,
21establish a hospital authority separate and apart from the county
22for the purpose of effecting a transfer of the management,
23administration, and control of the medical center in accordance
24with Section 14000.2 of the Welfare and Institutions Code. A
25hospital authority established pursuant to this chapter shall be
26strictly and exclusively dedicated to the management,
27administration, and control of the medical center within parameters
28set forth in this chapter, and in the ordinance, bylaws, and contracts
29adopted by the board of supervisors that shall not be in conflict
30with this chapter,
Section 1442.5 of this code, or Section 17000
31of the Welfare and Institutions Code.
32(c) A hospital authority established pursuant to this chapter shall
33be governed by a board that is appointed, both initially and
34continually, by the Board of Supervisors of the County of Alameda.
35This hospital authority governing board shall reflect both the
36expertise necessary to maximize the quality and scope of care at
37the medical center in a fiscally responsible manner and the diverse
38interest that the medical center serves. The enabling ordinance
39shall specify the membership of the hospital authority governing
40board, the qualifications for individual members, the manner of
P474 1appointment, selection, or removal of governing board members,
2their terms of office, and all other matters that the board of
3supervisors deems necessary or convenient for the conduct of the
4hospital authority’s activities.
5(d) The mission of the hospital authority shall be the
6management, administration, and other control, as determined by
7the board of supervisors, of the group of public hospitals, clinics,
8and programs that comprise the medical center, in a manner that
9ensures appropriate, quality, and cost-effective medical care as
10required of counties by Section 17000 of the Welfare and
11Institutions Code, and, to the extent feasible, other populations,
12including special populations in the County of Alameda.
13(e) The board of supervisors shall adopt bylaws for the medical
14center that set forth those matters related to the operation of the
15medical center by the hospital authority that the board of
16supervisors deems necessary and appropriate. The bylaws shall
17become operative upon approval by a majority vote of the board
18of supervisors. Any changes or amendments to the bylaws shall
19be by majority vote of the board of supervisors.
20(f) The hospital authority created and appointed pursuant to this
21section is a duly constituted governing body within the meaning
22of Section 1250begin insert of this codeend insert and Section 70035 of Title 22 of the
23California Code of Regulations as currently written or subsequently
24amended.
25(g) Unless otherwise provided by the board of supervisors by
26way of resolution, the hospital authority is empowered, or the
27board of supervisors is empowered on behalf of the hospital
28authority, to apply as a public agency for one or more licenses for
29the provision of health care pursuant to statutes and regulations
30governing licensing as currently written or subsequently amended.
31(h) In the event of a change of license ownership, the governing
32
body of the hospital authority shall comply with the obligations
33of governing bodies of general acute care hospitals generally as
34set forth in Section 70701 of Title 22 of the California Code of
35Regulations, as currently written or subsequently amended, as well
36as the terms and conditions of the license. The hospital authority
37begin delete shall beend deletebegin insert isend insert the responsible party with respect to compliance with
38these obligations, terms, and conditions.
39(i) (1) begin deleteAny end deletebegin insertA end inserttransfer by the county to the hospital authority of
40the administration, management, and control of
the medical center,
P475 1whether or not the transfer includes the surrendering by the county
2of the existing general acute care hospital license and corresponding
3application for a change of ownership of the license,begin delete shallend deletebegin insert doesend insert
4 not affect the eligibility of the county, or in the case of a change
5of license ownership, the hospital authority, to do any of the
6following:
7(A) Participate in, and receive allocations pursuant to, the
8California Healthcare for the Indigents Program (CHIP).
9(B) Receive supplemental reimbursements from the Emergency
10Services and Supplemental Payments Fund created pursuant to
11Section 14085.6 of the Welfare and Institutions Code.
12(C) Receive appropriations from the Medi-Cal Inpatient Payment
13Adjustment Fund without relieving the county of its obligation to
14make intergovernmental transfer payments related to the Medi-Cal
15Inpatient Payment Adjustment Fund pursuant to Section 14163 of
16the Welfare and Institutions Code.
17(D) Receive Medi-Cal capital supplements pursuant to Section
1814085.5 of the Welfare and Institutions Code.
19(E) Receive any other funds that would otherwise be available
20to a county hospital.
21(2) begin deleteAny end deletebegin insertA end inserttransfer described in paragraph (1)begin delete shallend deletebegin insert
doesend insert not
22otherwise disqualify the county, or in the case of a change in
23license ownership, the hospital authority, from participating in any
24of the following:
25(A) Other funding sources either specific to county hospitals or
26county ambulatory care clinics or for which there are special
27provisions specific to county hospitals or to county ambulatory
28care clinics.
29(B) Funding programs in which the county, on behalf of the
30medical center and the Alameda County Health Care Services
31Agency, had participated prior to the creation of the hospital
32authority, or would otherwise be qualified to participate in had the
33hospital authority not been created, and administration,
34management, and control not been transferred by the county to the
35hospital authority, pursuant to this chapter.
36(j) A
hospital authority created pursuant to this chapter shall be
37a legal entity separate and apart from the county and shall file the
38statement required by Section 53051 of the Government Code.
39The hospital authority shall be a government entity separate and
40apart from the county, and shall not be considered to be an agency,
P476 1division, or department of the county. The hospital authority shall
2not be governed by, nor be subject to, the charter of the county
3and shall not be subject to policies or operational rules of the
4county, including, but not limited to, those relating to personnel
5and procurement.
6(k) (1) begin deleteAny end deletebegin insertA end insertcontract executed by and between the county and
7the hospital authority shall provide that liabilities or obligations
8of the
hospital authority with respect to its activities pursuant to
9the contract shall be the liabilities or obligations of the hospital
10authority, and shall not become the liabilities or obligations of the
11county.
12(2) begin deleteAny liabilities end deletebegin insertLiabilities end insertor obligations of the hospital
13authority with respect to the liquidation or disposition of the
14hospital authority’s assets upon termination of the hospital authority
15shall not become the liabilities or obligations of the county.
16(3) begin deleteAny end deletebegin insertAn end insertobligation of the hospital
authority, statutory,
17contractual, or otherwise, shall be the obligation solely of the
18hospital authority and shall not be the obligation of the county or
19the state.
20(l) (1) Notwithstanding any other provision of this section,begin delete anyend delete
21begin insert aend insert transfer of the administration, management, or assets of the
22medical center, whether or not accompanied by a change in
23licensing,begin delete shallend deletebegin insert doesend insert not relieve the county of the ultimate
24responsibility for indigent care pursuant to Section 17000 of the
25Welfare and Institutions Code or any obligation pursuant to
Section
261442.5 of this code.
27(2) begin deleteAny end deletebegin insertA end insertcontract executed by and between the county and the
28hospital authority shall provide for the indemnification of the
29county by the hospital authority for liabilities as specifically set
30forth in the contract, except that the contract shall include a
31provision that the county shall remain liable for its own negligent
32acts.
33(3) Indemnification by the hospital authority shall not be
34construed as divesting the county from its ultimate responsibility
35for compliance with Section 17000 of the Welfare and Institutions
36Code.
37(m) Notwithstanding the provisions of this section relating to
38the
obligations and liabilities of the hospital authority, a transfer
39of control or ownership of the medical center shall confer onto the
P477 1hospital authority all the rights and duties set forth in state law
2with respect to hospitals owned or operated by a county.
3(n) (1) A transfer of the maintenance, operation, and
4management or ownership of the medical center to the hospital
5authority shall comply with the provisions of Section 14000.2 of
6the Welfare and Institutions Code.
7(2) A transfer of maintenance, operation, and management or
8ownership to the hospital authority may be made with or without
9the payment of a purchase price by the hospital authority and
10otherwise upon the terms and conditions that the parties may
11mutually agree, which terms and conditions shall include those
12found necessary by the board of supervisors to ensure that the
13transfer will
constitute an ongoing material benefit to the county
14and its residents.
15(3) A transfer of the maintenance, operation, and management
16to the hospital authority shall not be construed as empowering the
17hospital authority to transfer any ownership interest of the county
18in the medical center except as otherwise approved by the board
19of supervisors.
20(o) The board of supervisors shall retain control over the use of
21the medical center physical plant and facilities except as otherwise
22specifically provided for in lawful agreements entered into by the
23board of supervisors. Any lease agreement or other agreement
24between the county and the hospital authority shall provide that
25county premises shall not be sublet without the approval of the
26board of supervisors.
27(p) The statutory authority of a board of supervisors to prescribe
28
rules that authorize a county hospital to integrate its services with
29those of other hospitals into a system of community service that
30offers free choice of hospitals to those requiring hospital care, as
31set forth in Section 14000.2 of the Welfare and Institutions Code,
32shall apply to the hospital authority upon a transfer of maintenance,
33operation, and management or ownership of the medical center by
34the county to the hospital authority.
35(q) The hospital authoritybegin delete shall have the power toend deletebegin insert mayend insert acquire
36and possess real or personal property and may dispose of real or
37personal property other than that owned by the county, as may be
38necessary for the performance of its functions. The hospital
39authoritybegin delete shall have the power toend deletebegin insert
mayend insert sue or be sued, to employ
40personnel, and to contract for services required to meet its
P478 1obligations. Before January 1, 2024, the hospital authority shall
2not enter into a contract with any other person or entity, including,
3but not limited to, a subsidiary or other entity established by the
4authority, to replace services being provided by physicians and
5surgeons who are employed by the hospital authority and in a
6recognized collective bargaining unit as of March 31, 2013, with
7services provided by that other person or entity without clear and
8convincing evidence that the needed medical care can only be
9delivered cost effectively by that other person or entity. Prior to
10entering into a contract for any of those services, the authority
11shall negotiate with the representative of the recognized collective
12bargaining unit of its physician and surgeon employees over the
13decision to privatize and, if unable to resolve any dispute through
14negotiations, shall submit the
matter to final binding arbitration.
15(r) Any agreement between the county and the hospital authority
16shall provide that all existing services provided by the medical
17center shall continue to be provided to the county through the
18medical center subject to the policy of the county and consistent
19with the county’s obligations under Section 17000 of the Welfare
20and Institutions Code.
21(s) A hospital authority to which the maintenance, operation,
22and management or ownership of the medical center is transferred
23shall be a “district” within the meaning set forth in the County
24Employees Retirement Law of 1937 (Chapter 3 (commencing with
25Section 31450) of Part 3 of Division 4 of Title 3 of the Government
26Code). Employees of a hospital authority are eligible to participate
27in the County Employees Retirement System to the extent
28permitted by law, except as described in Section 101851.
29(t) Members of the governing board of the hospital authority
30shall not be vicariously liable for injuries caused by the act or
31omission of the hospital authority to the extent that protection
32applies to members of governing boards of local public entities
33generally under Section 820.9 of the Government Code.
34(u) The hospital authority shall be a public agency subject to
35the Meyers-Milias-Brown Act (Chapter 10 (commencing with
36Section 3500) of Division 4 of Title 1 of the Government Code).
37(v) Any transfer of functions from county employee
38classifications to a hospital authority established pursuant to this
39section shall result in the recognition by the hospital authority of
P479 1the employee organization that represented the classifications
2performing those functions at the time of the transfer.
3(w) (1) In exercising its powers to employ personnel, as set
4forth in subdivision (p), the hospital authority shall implement,
5and the board of supervisors shall adopt, a personnel transition
6plan. The personnel transition plan shall require all of the
7following:
8(A) Ongoing communications to employees and recognized
9employee organizations regarding the impact of the transition on
10existing medical center employees and employee classifications.
11(B) Meeting and conferring on all of the following issues:
12(i) The timeframe for which the transfer of personnel shall occur.
13The timeframe shall be subject to modification by the board of
14supervisors as appropriate, but in no event shall it exceed one year
15from the effective date of transfer of
governance from the board
16of supervisors to the hospital authority.
17(ii) A specified period of time during which employees of the
18county impacted by the transfer of governance may elect to be
19appointed to vacant positions with the Alameda County Health
20Care Services Agency for which they have tenure.
21(iii) A specified period of time during which employees of the
22county impacted by the transfer of governance may elect to be
23considered for reinstatement into positions with the county for
24which they are qualified and eligible.
25(iv) Compensation for vacation leave and compensatory leave
26accrued while employed with the county in a manner that grants
27affected employees the option of either transferring balances or
28receiving compensation to the degree permitted employees laid
29off from service with the county.
30(v) A transfer of sick leave accrued while employed with the
31county to hospital authority employment.
32(vi) The recognition by the hospital authority of service with
33the county in determining the rate at which vacation accrues.
34(vii) The possible preservation of seniority, pensions, health
35benefits, and other applicable accrued benefits of employees of
36the county impacted by the transfer of governance.
37(2) begin deleteNothing in this end deletebegin insertThis end insertsubdivision shallbegin insert notend insert be construed
as
38prohibiting the hospital authority from determining the number of
39employees, the number of full-time equivalent positions, the job
P480 1descriptions, and the nature and extent of classified employment
2positions.
3(3) Employees of the hospital authority are public employees
4for purposes of Division 3.6 (commencing with Section 810) of
5Title 1 of the Government Code relating to claims and actions
6against public entities and public employees.
7(x) Any hospital authority created pursuant to this section shall
8be bound by the terms of the memorandum of understanding
9executed by and between the county and health care and
10management employee organizations that is in effect as of the date
11this legislation becomes operative in the county. Upon the
12expiration of the memorandum of understanding, the hospital
13authoritybegin delete shall haveend deletebegin insert
hasend insert sole authority to negotiate subsequent
14memorandums of understanding with appropriate employee
15organizations. Subsequent memorandums of understanding shall
16be approved by the hospital authority.
17(y) The hospital authority created pursuant to this section may
18borrow from the county and the county may lend the hospital
19authority funds or issue revenue anticipation notes to obtain those
20funds necessary to operate the medical center and otherwise provide
21medical services.
22(z) The hospital authoritybegin delete shall beend deletebegin insert isend insert subject to state and federal
23taxation laws that are applicable to counties generally.
24(aa) The hospital authority, the county, or both, may engage in
25marketing, advertising, and promotion of the medical and health
26care services made available to the community at the medical
27center.
28(ab) The hospital authoritybegin delete shallend deletebegin insert isend insert notbegin delete beend delete a “person” subject to
29suit under the Cartwright Act (Chapter 2 (commencing with Section
3016700) of Part 2 of Division 7 of the Business and Professions
31Code).
32(ac) Notwithstanding Article 4.7 (commencing with Section
331125) of Chapter 1 of Division 4 of Title 1 of the Government
34Code related to incompatible activities, a member of the hospital
35authority
administrative staff shall not be considered to be engaged
36in activities inconsistent and incompatible with his or her duties
37as a result of employment or affiliation with the county.
38(ad) (1) The hospital authority may use a computerized
39management information system in connection with the
40administration of the medical center.
P481 1(2) Information maintained in the management information
2system or in other filing and records maintenance systems that is
3confidential and protected by law shall not be disclosed except as
4provided by law.
5(3) The records of the hospital authority, whether paper records,
6records maintained in the management information system, or
7records in any other form, that relate to trade secrets or to payment
8rates or the determination thereof, or which relate to contract
9
negotiations with providers of health care, shall not be subject to
10disclosure pursuant to the California Public Records Act (Chapter
115 (commencing with Section 6250) of Division 7 of Title 1 of the
12Government Code). The transmission of the records, or the
13information contained therein in an alternative form, to the board
14of supervisorsbegin delete shallend deletebegin insert doesend insert not constitute a waiver of exemption from
15disclosure, and the records and information once transmitted shall
16be subject to this same exemption. The information, if compelled
17pursuant to an order of a court of competent jurisdiction or
18administrative body in a manner permitted by law, shall be limited
19to in-camera review, which, at the discretion of the court, may
20include the parties to the proceeding, and shall not be made a part
21of the court file unless sealed.
22(ae) (1) Notwithstanding any other law, the governing board
23may order that a meeting held solely for the purpose of discussion
24or taking action on hospital authority trade secrets, as defined in
25subdivision (d) of Section 3426.1 of the Civil Code, shall be held
26in closed session. The requirements of making a public report of
27actions taken in closed session and the vote or abstention of every
28member present may be limited to a brief general description
29devoid of the information constituting the trade secret.
30(2) The governing board may delete the portion or portions
31containing trade secrets from any documents that were finally
32approved in the closed session that are provided to persons who
33have made the timely or standing request.
34(3) begin deleteNothing in this end deletebegin insertThis
end insertsection shallbegin insert notend insert be construed as
35preventing the governing board from meeting in closed session as
36otherwise provided by law.
37(af) Open sessions of the hospital authoritybegin delete shallend delete constitute
38official proceedings authorized by law within the meaning of
39Section 47 of the Civil Code. The privileges set forth in that section
P482 1with respect to official proceedingsbegin delete shallend delete apply to open sessions
2of the hospital authority.
3(ag) The hospital authoritybegin delete shall beend deletebegin insert
isend insert a public agency for
4purposes of eligibility with respect to grants and other funding and
5loan guarantee programs. Contributions to the hospital authority
6begin delete shall beend deletebegin insert areend insert tax deductible to the extent permitted by state and
7federal law. Nonproprietary income of the hospital authoritybegin delete shall begin insert isend insert exempt from state income taxation.
8beend delete
9(ah) Contracts by and between the hospital authority and the
10state and contracts by and between the hospital authority and
11providers of health care, goods, or services may be let on a nonbid
12basis and
shall be exempt from Chapter 2 (commencing with
13Section 10290) of Part 2 of Division 2 of the Public Contract Code.
14(ai) (1) Provisions of the Evidence Code, the Government Code,
15including thebegin insert
California end insert Public Records Act (Chapter 5
16(commencing with Section 6250) of Division 7 of Title 1 of the
17Government Code), the Civil Code, the Business and Professions
18Code, and other applicable law pertaining to the confidentiality of
19peer review activities of peer review bodiesbegin delete shallend delete apply to the peer
20review activities of the hospital authority. Peer review proceedings
21begin delete shallend delete constitute an official proceeding authorized by law within
22the meaning of Section 47 of the Civil Code and those privileges
23set forth in that section with respect to official proceedings shall
24apply to peer review proceedings of the hospital authority. If the
25hospital authority is required by law or contractual obligation to
26submit to the state or federal government peer review information
27or information relevant to the
credentialing of a participating
28provider, that submissionbegin delete shallend deletebegin insert doesend insert not constitute a waiver of
29confidentiality. The laws pertaining to the confidentiality of peer
30review activities shall be together construed as extending, to the
31extent permitted by law, the maximum degree of protection of
32confidentiality.
33(2) Notwithstanding any other law, Section 1461begin delete shall applyend delete
34begin insert appliesend insert to hearings on the reports of hospital medical audit or
35quality assurance committees.
36(aj) The hospital authority shall carry
general liability insurance
37to the extent sufficient to cover its activities.
38(ak) In the event the board of supervisors determines that the
39hospital authority should no longer function for the purposes as
40set forth in this chapter, the board of supervisors may, by ordinance,
P483 1terminate the activities of the hospital authority and expire the
2hospital authority as an entity.
3(al) A hospital authoritybegin delete whichend deletebegin insert thatend insert is created pursuant to this
4sectionbegin insert,end insert butbegin delete whichend delete does not obtain the administration, management,
5
and control of the medical center orbegin delete whichend delete has those duties and
6responsibilities revoked by the board of supervisorsbegin insert,end insert shall not be
7empowered with the powers enumerated in this section.
8(am) (1) The county shall establish baseline data reporting
9requirements for the medical center consistent with the Medically
10Indigent Health Care Reporting System (MICRS) program
11established pursuant to Section 16910 of the Welfare and
12Institutions Code and shall collect that data for at least one year
13prior to the final transfer of the medical center to the hospital
14authority established pursuant to this chapter. The baseline data
15shall include, but not be limited to, all of the following:
16(A) Inpatient days by facility by quarter.
17(B) Outpatient visits by facility by quarter.
18(C) Emergency room visits by facility by quarter.
19(D) Number of unduplicated users receiving services within the
20medical center.
21(2) Upon transfer of the medical center, the county shall
22establish baseline data reporting requirements for each of the
23medical center inpatient facilities consistent with data reporting
24requirements of the Office of Statewide Health Planning and
25Development, including, but not limited to, monthly average daily
26census by facility for all of the following:
27(A) Acute care, excluding newborns.
28(B) Newborns.
29(C) Skilled nursing facility, in a distinct part.
30(3) From the date of transfer of the medical center to the hospital
31authority, the hospital authority shall provide the county with
32quarterly reports specified in paragraphs (1) and (2) and any other
33data required by the county. The county, in consultation with health
34care consumer groups, shall develop other data requirements that
35shall include, at a minimum, reasonable measurements of the
36changes in medical care for the indigent population of Alameda
37County that result from the transfer of the administration,
38management, and control of the medical center from the county
39to the hospital authority.
P484 1(an) A hospital authority established pursuant to this section
2shall comply with the requirements of Sections 53260 and 53261
3of the Government
Code.
4(ao) This section shall become operative January 1, 2015.
Section 101853 of the Health and Safety Code is
6amended to read:
(a) Pursuant to this chapter, the board of supervisors
8may establish by ordinance the Kern County Hospital Authority,
9which shall be a public agency that is a local unit of government
10separate and apart from the county and any other public entity for
11all purposes. The authority established pursuant to this chapter
12shall file the statement required by Section 53051 of the
13Government Code, and is a public entity for purposes of Division
143.6 (commencing with Section 810) of Title 1 of the Government
15Code.
16(b) The purpose of the authoritybegin delete shall beend deletebegin insert isend insert to do all of the
17
following:
18(1) Provide management, administration, and other controls
19consistent with this chapter as needed to operate the medical center
20and maintain its status as a designated public hospital, as defined
21in subdivision (d) of Section 14166.1 of the Welfare and
22Institutions Code, and for the operation of additional programs,
23clinics and other facilities, care organizations, health care service
24and physician practice plans, and delivery systems that may be
25affiliated or consolidated with the medical center, to ensure the
26viability of the health care safety net in the county in a manner
27consistent with the county’s requirements under Section 17000 of
28the Welfare and Institutions Code.
29(2) Provide management, administration, and other controls
30consistent with this chapter to negotiate and enter into contracts
31to provide or arrange, or provide directly, on a fee-for-service,
32
capitated, or other basis, health care services to individuals
33including, but not limited to, those covered under Subchapters
34XVIII (commencing with Section 1395), XIX (commencing with
35Section 1396), and XXI (commencing with Section 1397aa) of
36Chapter 7 of Title 42 of the United States Code, those entitled to
37coverage under private group coverage, private individual coverage,
38begin delete includingend deletebegin insert including,end insert without limitation, coverage through Covered
39California, other publicly supported programs, those employed by
P485 1public agencies or private businesses, and uninsured or indigent
2individuals.
3(c) Subject to the requirements of this chapter, the authority
4begin delete shall haveend deletebegin insert
hasend insert andbegin delete beend deletebegin insert isend insert charged with authority for the management,
5administration, and control of the medical center and other
6health-related resources. The State Department of Health Care
7Services shall take all necessary steps to ensure all of the following:
8(1) The authority is permitted to operate the medical center.
9(2) The medical center continues its status as a designated public
10hospital to at least the same extent as it would be designated in the
11absence of its transfer to the authority pursuant to this chapter.
12(3) The authority may participate as a contributing public agency
13for all of the
purposes specified in Section 433.51 of Title 42 of
14the Code of Federal Regulations, to the extent permitted by federal
15law.
16(d) The board of supervisors, in the enabling ordinance, shall
17establish the terms and conditions of the transfer to the authority
18from the county, including, but not limited to, all of the following:
19(1) begin deleteAny end deletebegin insertA end inserttransfer of real and personal property, assets, and
20liabilities, including, but not limited to, liabilities of the medical
21center determined and assigned by the county for county funds
22previously advanced, but not repaid or otherwise recovered, to
23fund the operations of the medical center.
24(2) Transfer of employees, including any necessary personnel
25transition plan, as specified in Section 101853.1, allocation of
26credit for funded pension assets and responsibility for any unfunded
27pension liabilities under the Kern County Employees’ Retirement
28Association or other retirement plans, and funding of the accrued
29benefits of employees of the authority in the event of withdrawal
30from the plan or dissolution of the authority.begin delete Anyend deletebegin insert Anend insert allocation of
31credit for funded pension assets and responsibility forbegin delete anyend delete unfunded
32pension liabilities with respect to the Kern County Employees’
33Retirement Associationbegin delete mustend deletebegin insert
shallend insert be approved by its governing
34board of retirement after consideration of legal and actuarial
35analysis, andbegin delete no suchend deletebegin insert anend insert allocationbegin delete mayend deletebegin insert shall notend insert be made that
36would jeopardize the qualified status of the Kern County
37Employees’ Retirement Association under the federal Internal
38Revenue Code.
39(3) Maintenance, operation, and management or ownership of
40the medical center.
P486 1(4) Transfer of licenses.
2(5) Any
other matters as the board of supervisors deems
3necessary, appropriate, or convenient for the conduct of the
4authority’s activities.
5(e) (1) Notwithstanding any other law, a transfer of
6maintenance, operation, and management or ownership or lease
7of the medical center to the authority may be made, with or without
8the payment of a purchase price by the authority, and otherwise
9upon the terms and conditions as found necessary by the board of
10supervisors and specified in the enabling ordinance to ensure that
11the transfer will constitute an ongoing material benefit to the county
12and its residents.
13(2) A transfer of the maintenance, operation, and management,
14or ownership or lease of the medical center to the authority shall
15not be construed as empowering the authority to transfer any
16ownership interest of the county in any portion of the medical
17centerbegin insert,end insert
except as otherwise approved by the board of supervisors.
18(3) The authority shall not transfer the maintenance, operation,
19and management or ownership or lease of the medical center to
20any other person or entity without the prior written approval of
21the board of supervisors. This paragraphbegin delete shallend deletebegin insert doesend insert not prevent
22the county, by ordinance, from allowing the disposal of obsolete
23or surplus equipment, supplies, or furnishings of the medical center
24by the authority.
25(4) With respect to the maintenance, operation, and management
26or ownership or lease of the medical center, the authority shall
27conform to both of the following requirements:
28(A) Comply with any applicable requirements of Section
2914000.2 of the Welfare and Institutions Code.
30(B) Comply with any applicable requirements of Section 1442.5.
31(5) The board of supervisors may retain control of the medical
32center physical plant and facilities, as specifically provided for in
33the enabling ordinance or other lawful agreements entered into by
34the board of supervisors. Any lease agreement between the county
35and the authority shall provide that county premises shall not be
36sublet without the approval of the board of supervisors.
37(6) Notwithstanding any other provision of this chapter, and
38whether or not accompanied by a change in licensing, the
39authority’s responsibility for the maintenance, operation, and
40management of the medical center, or
any ownership or leasehold
P487 1interest of the authority in the medical center, does not relieve the
2county of the ultimate responsibility for indigent care pursuant to
3Section 17000 of the Welfare and Institutions Code.
4(7) For purposes of Article 12 (commencing with Section
517612.1) of Chapter 6 of Part 5 of Division 9 of the Welfare and
6Institutions Code, and the definition set forth in subdivision (f) of
7Section 17612.2 of the Welfare and Institutions Code, the medical
8center, excluding components that provide predominately public
9health services, and the county are affiliated governmental entities.
10(f) The board of supervisors may contract with the authority for
11 the provision of indigent care services on behalf of the county.
12The contract shall specify that county policies, as may be modified
13from time to time and consistent with the county’s obligations
14under Section 17000 of
the Welfare and Institutions Code, shall
15be applicable. Notwithstanding any other provision of this chapter,
16the authority shall not undertake any of the county’s obligations
17under Section 17000 of the Welfare and Institutions Code, nor
18shall the authority have an entitlement to receive any revenue for
19the discharge of the county’s obligations, without a written
20agreement with the county.begin delete Anyend deletebegin insert Aend insert contract executed by and
21between the county and the authority shall provide for the
22indemnification of the county by the authority for liabilities as
23specifically set forth in the contract, except that the contract shall
24include a provision that the countybegin delete shall remainend deletebegin insert
remainsend insert liable for
25its own negligent acts. Indemnification by the authoritybegin delete shallend deletebegin insert doesend insert
26 not divest the county from its ultimate responsibility for compliance
27with Section 17000 of the Welfare and Institutions Code.
28(g) Unless otherwise agreed to by the authority and the board
29of supervisors, an obligation of the authority, statutory, contractual,
30or otherwise,begin delete shall beend deletebegin insert isend insert the obligation solely of the authority and
31begin delete shallend deletebegin insert
isend insert notbegin delete beend delete the obligation of the county or any other entity, and
32begin delete anyend deletebegin insert aend insert contract executed by and between the county and the
33authority, or any other entity and the authority, shall contain a
34provision that liabilities or obligations of the authority with respect
35to its activities pursuant to the contractbegin delete shall beend deletebegin insert areend insert the liabilities
36or obligations of the authority andbegin delete shall not be orend deletebegin insert
are not and will
37notend insert become the liabilities or obligations of the county or the other
38entity, respectively. An obligation of the authority, statutory,
39contractual, or otherwise,begin delete shallend deletebegin insert isend insert notbegin delete beend delete the obligation of the state.
P488 1(h) The authoritybegin delete shallend deletebegin insert isend insert notbegin delete beend delete a “person” subject to suit under
2the Cartwright Act (Chapter 2 (commencing with Section 16700)
3of Part 2
of Division 7 of the Business and Professions Code).
4(i) The authority is not subject to the jurisdiction of a local
5agency formation commission pursuant to the
6Cortese-Knox-Hertzberg Local Government Reorganization Act
7of 2000 (Division 3 (commencing with Section 56000) of Title 5
8of the Government Code), or any successor statute.
9(j) The authority is a “district” within the meaning set forth in
10the County Employees Retirement Law of 1937 (Chapter 3
11(commencing with Section 31450) of Part 3 of Division 4 of Title
123 of the Government Code). Employees of the authority are eligible
13to become members or maintain membership, as applicable, in the
14Kern County Employees’ Retirement Association, to the extent
15described in subdivision (g) of Section 101853.1.
16(k) begin deleteAny end deletebegin insertA
end insertdetermination with respect to the manner in which
17the authority qualifies as a governmental plan sponsor under
18Section 414(d) of the Internal Revenue Code shall be limited to
19relevant employee benefits purposes of that code only, and shall
20not change or otherwise modify the authority’s status as a public
21agency that is a unit of local government for other purposes
22specified in this chapter.
Section 101853.1 of the Health and Safety Code is
24amended to read:
(a) In exercising its powers to employ personnel,
26the authority shall implement, and the board of supervisors shall
27adopt, a personnel transition plan. The personnel transition plan
28shall require all of the following:
29(1) Ongoing communication to employees and recognized
30employee organizations regarding the impact of the transition on
31existing medical center, county, and other health care facility
32employees and employee classifications.
33(2) Meeting and conferring with representatives of affected
34bargaining unit employees on both of the following issues:
35(A) A timeframe for which the transfer of personnel shall occur.
36(B) Specified periods of time during which county or medical
37center employees affected by the establishment of the authority
38may elect to be considered for appointment and exercise
39reinstatement rights, if applicable, to funded, equivalent, vacant
40county positions for which they are qualified and eligible. An
P489 1employee who first elects to remain with the county may
2subsequently seek reinstatement with the authority within 30 days
3of the election to remain with the county and shall be subject to
4the requirements of this article.
5(3) Acknowledgment that the authority, to the extent permitted
6by federal and state law, shall be bound by the terms of the
7memoranda of understanding executed between the county and its
8exclusive employee representatives that are in effect on the date
9the county adopts the enabling ordinance pursuant to this chapter.
10Subsequent memoranda of understanding with
exclusive employee
11representatives shall be subject to approval only by the board of
12governors.
13(4) Communication to the Board of Retirement of the Kern
14County Employees’ Retirement Association or other retirement
15plan of any personnel transition plan, memoranda of understanding,
16or other arrangements that are related to the participation of the
17authority’s employees or the addition of new employees in the
18retirement plan.
19(b) Implementation of this chapterbegin delete shallend deletebegin insert isend insert notbegin delete beend delete a cause for
20the modification of the medical center or county employment
21benefits. Upon the execution of the enabling ordinance, employees
22
of the medical center or county on the date of execution, who
23become authority employees, shall retain their existing or
24equivalent classifications and job descriptions upon transfer to the
25authority, comparable pension benefits (if permissible pursuant to
26relevant plan terms), and their existing salaries and other benefits
27that include, but are not limited to, accrued and unused vacation,
28sick leave, personal leave, health care, retiree health benefits, and
29deferred compensation plans. The transfer of an employee from
30the medical center or countybegin delete shallend deletebegin insert doesend insert not constitute a termination
31of employment for purposes of Section 227.3 of the Labor Code,
32or employee benefit plans and arrangements maintained by the
33medical center or county, except as otherwise provided in the
34enabling ordinance or personnel transition plan,begin delete nor shall itend deletebegin insert
and it
35shall notend insert be counted as a break in uninterrupted employment for
36purposes of Section 31641 of the Government Code with respect
37to the Kern County Employees’ Retirement Association, or state
38service for purposes of the Public Employees’ Retirement System
39(Part 3 (commencing with Section 20000) of Division 5 of Title
402 of the Government Code).
P490 1(c) Subject to applicable state law, the authority shall recognize
2the exclusive employee representatives of those authority
3employees who are transferred from the county or medical center
4to the authority pursuant to this chapter.
5(d) In order to stabilize labor and employment relations and
6provide continuity of care and services to the people of the county,
7and notwithstanding any other law, the authority shall do all of the
8following for a period of 24 months after the effective date of the
9
transfer of the medical center to the authority:
10(1) Continue to recognize each exclusive employee
11representative of each bargaining unit.
12(2) Continue to provide the same level of employee benefits to
13authority employees, whether the obligation to provide those
14benefits arise out of a memorandum of understanding, or other
15agreements or law.
16(3) Extend and continue to be bound by any existing memoranda
17of understanding covering the terms and conditions of employment
18for employees of the authority, including the level of wages and
19benefits, and any county rules, ordinances, or policies specifically
20identified and incorporated by reference in a memoranda of
21understanding for 24 months or through the term of the
22memorandum of understanding, whichever shall be the longer,
23unless modified by mutual agreement with each of
the exclusive
24employee representatives. The authority shall continue to provide
25those pension benefits specified in any memoranda of agreement
26as long as doing so does not conflict with any Kern County
27Employee Retirement Association plan provisions, or federal or
28state law including the County Employees Retirement Law of 1937
29(Chapter 3 (commencing with Section 31450) of Part 3 of Division
304 of Title 3 of the Government Code and the federal Internal
31Revenue Code).
32(4) Meet and confer with the exclusive employee representatives
33to develop processes and procedures to address employee
34disciplinary action taken against permanent employees. If the
35authority terminates, suspends, demotes, or reduces the pay of a
36permanent employee for disciplinary reasons, those actions shall
37only be for cause consistent with state law, and an employee shall
38be afforded applicable due process protections granted to public
39employees under state law. Permanent
employees laid off by the
40authority within six months of the date the ordinance is adopted
P491 1shall remain on the county reemployment list for two years.
2Inclusion on the county reemployment list is not a guarantee of
3reemployment. For the purposes of this paragraph, the term
4“permanent employees” excludes probationary employees,
5temporary employees, seasonal employees, provisional employees,
6extra help employees, and per diem employees.
7(5) To the extent layoffs occur, and provided that all other
8previously agreed upon factors are equal, ensure that seniority
9shall prevail. The authority shall meet and confer with the exclusive
10employee representatives to address layoff procedures and the
11manner in which, and the extent to which, seniority shall be
12measured for employees who transfer from the medical center or
13county.
14(e) Permanent employees of the medical center or county on
15the
effective date of the transfer of the medical center to the
16authority, shall be deemed qualified for employment in equivalent
17positions at the authority, and no other qualifications shall be
18required except as otherwise required by state or federal law.
19Probationary employees on the effective date of the transfer, as
20set forth in this paragraph, shall retain their probationary status
21and rights and shall not be required to serve a new probationary
22or extend their probationary period by reason of the transfer. To
23the extent possible, employees who transfer to equivalent positions
24at the authority shall retain their existing classifications and job
25descriptions, but if there is a dispute over this issue, the authority
26agrees to meet and confer with the exclusive employee
27representatives of the transferred employees.
28(f) Employees who transfer from the medical center or county
29to the authority shall retain the seniority they earned at the medical
30
center or county and any benefits or privileges based on the
31seniority.
32(g) Notwithstanding any other law, employees of the authority
33may participate in the Kern County Employees’ Retirement
34Association, operated pursuant to the County Employees
35Retirement Law of 1937 (Chapter 3 (commencing with Section
3631450) of Part 3 of Division 4 of Title 3 of the Government Code)
37as set forth below. However, the authority and employees of the
38authority, or certain designated parts thereof, shall not participate
39in the Kern County Employees’ Retirement Association if the
40board of retirement, in its sole discretion, determines that their
P492 1participation could jeopardize the Kern County Employees’
2Retirement Association’s tax-qualified or governmental plan status
3under federal law, or if a contract or related contract amendment
4proposed by the authority contains any benefit provisions that are
5not specifically authorized by Chapters 3 (commencing with
6Section
31450) and 3.9 (commencing with Section 31899) of Part
73 of Division 4 of Title 3 of the Government Code or Article 4
8(commencing with Section 7522) of Chapter 21 of Division 7 of
9Title 1 of the Government Code, and that the board determines
10would adversely affect the administration of the system. There
11shall not be any individual employee elections regarding
12participation in the Kern County Employees’ Retirement
13Association or other retirement plans except to the extentbegin delete suchend deletebegin insert theend insert
14 retirement plans provide for elective employee salary deferral
15contributions in accordance with federal Internal Revenue Code
16rules.
17(1) Employees transferred from the county or medical center to
18the authority who are subject to a memorandum of understanding
19between the authority
and an exclusive employee representative,
20as described in paragraphs (2) and (3) of subdivision (d), and who
21were members of the Kern County Employees’ Retirement
22Association at the time of their transfer of employment, shall
23continue to be a member of the Kern County Employees’
24Retirement Association, retaining service credit earned to the date
25of transfer, to the extent provided for in the applicable
26memorandum of understanding.
27(2) Employees transferred from the county or medical center to
28the authority who are subject to a memorandum of understanding
29between the authority and an exclusive employee representative,
30as described in paragraphs (2) and (3) of subdivision (d), and who
31were not members of the Kern County Employees’ Retirement
32Association at the time of their transfer of employment, shall
33subsequently become a member of the Kern County Employees’
34Retirement Association only to the extent provided for in the
35applicable memorandum of
understanding.
36(3) Employees transferred from the county or medical center to
37the authority who are not subject to a memorandum of
38understanding between the authority and an exclusive employee
39representative, as described in paragraphs (2) and (3) of subdivision
40(d), and who were members of the Kern County Employees’
P493 1Retirement Association at the time of their transfer of employment,
2shall continue to be a member of the Kern County Employees’
3Retirement Association, retaining service credit earned to the date
4of transfer, as provided in the enabling ordinance or the personnel
5transition plan.
6(4) Employees transferred from the county or medical center to
7the authority who are not subject to a memorandum of
8understanding between the authority and an exclusive employee
9representative, as described in paragraphs (2) and (3) of subdivision
10(d), and who were not members of the Kern
County Employees’
11Retirement Association at the time of their transfer of employment,
12shall subsequently become a member of the Kern County
13Employees’ Retirement Association only to the extent provided
14in the enabling ordinance or the personnel transition plan.
15(5) Employees hired by the authority on or after the effective
16date of the enabling ordinance shall become a member of the Kern
17County Employees’ Retirement Association only to the extent
18provided in the enabling ordinance or personnel transition plan
19described in subdivision (a), or, if subject to a memorandum of
20understanding between the authority and an exclusive employee
21representative as described in paragraphs (2) and (3) of subdivision
22(d), to the extent provided for in the applicable memorandum of
23understanding.
24(6) Notwithstanding any other law, for purposes ofbegin insert
theend insert California
25Public Employees’ Pension Reform Act of 2013 (Article 4
26(commencing with Section 7522) of Chapter 21 of Division 7 of
27Title 1 of the Government Code), an individual who was employed
28by the county or the medical center when it was a constituent
29department of the county, and is a member of the Kern County
30Employees’ Retirement Association or the Public Employees’
31Retirement System, as set forth in Part 3 (commencing with Section
3220000) of Division 5 of Title 2 of the Government Code, prior to
33January 1, 2013, and who transfers, directly or after a break in
34service of less than six months, to the authority, in which the
35individual continues to be a member of either the Kern County
36Employees’ Retirement Association or the Public Employees’
37Retirement System, as applicable, shall not be deemed to be a new
38employee or a new member within the meaning of Section 7522.04
39of the Government Code, and shall continue to be subject to the
40same defined benefit formula,
as defined in Section 7522.04 of
P494 1the Government Code, to which the member was subject
2immediately prior to the transfer.
3(h) This chapterbegin delete shallend deletebegin insert doesend insert not prohibit the authority from
4contracting with the Public Employees’ Retirement System, in
5accordance with the requirements of Section 20508 and any other
6applicable provisions of Part 3 (commencing with Section 20000)
7of Division 5 of Title 2 of the Government Code, for the purpose
8of providing employee participation in that system, or from
9establishing an alternative or supplemental retirement system or
10arrangement, including, but not limited to, deferred compensation
11arrangements, to the extent permitted by law and subject to any
12applicable agreement between the authority and the exclusive
13employee
representatives, and as provided in the enabling
14ordinance or the personnel transition plan. Notwithstanding any
15other law, the authority and employees of the authority shall not
16participate in the Public Employees’ Retirement System if the
17Board of Administration of the Public Employees’ Retirement
18System, in its sole discretion, determines that their participation
19could jeopardize the Public Employees’ Retirement System’s
20tax-qualified or governmental plan status under federal law, or if
21a contract or related contract amendment proposed by the authority
22contains any benefit provisions that are not specifically authorized
23by Part 3 (commencing with Section 20000) of Division 5 of Title
242 of the Government Code, and that the board determines would
25adversely affect the administration of the system.
26(i) Provided that this is not inconsistent with anything in this
27chapter, this chapter does not prohibit the authority from
28determining the number of
employees, the number of full-time
29equivalent positions, job descriptions, the nature and extent of
30classified employment positions, and salaries of employees.
Section 101855 of the Health and Safety Code is
32amended to read:
(a) The authority, in addition to any other powers
34granted pursuant to this chapter,begin delete shall haveend deletebegin insert hasend insert the following
35powers:
36(1) To have the duties, privileges, immunities, rights, liabilities,
37and limitations of a local unit of government within the state.
38(2) To have perpetual existence, subject to Article 5
39(commencing with Section 101856).
40(3) To adopt, have, and use a seal, and to alter it at its pleasure.
P495 1(4) To sue and be sued in the name of the authority in all actions
2and proceedings in all courts and tribunals of competent
3jurisdiction.
4(5) To purchase, lease, trade, exchange, or otherwise acquire,
5maintain, hold, improve, mortgage, lease, sell, and dispose of real
6and personal property of any kind necessary or convenient to
7perform its functions and fully exercise its powers.
8(6) To appoint and employ a chief executive officer and other
9officers and employees that may be necessary or appropriate,
10including legal counsel, to establish their compensation, provide
11for their health, retirement, and other employment benefits, and
12to define the power and duties of officers and employees.
13(7) (A) To incur indebtedness and to borrow money
and issue
14bonds evidencing the same, including the authority to issue, from
15time to time, notes and revenue bonds in principal amounts that
16the authority determines to be necessary to provide sufficient funds
17for achieving any of its purposes, including, but not limited to,
18assumption or refinancing of debt service for capital projects
19eligible for Medi-Cal supplemental payments pursuant to Section
2014085.5 of the Welfare and Institutions Code, or any successor or
21modified Medi-Cal debt service reimbursement program, the
22payment of interest on notes and bonds of the authority, the
23establishment of reserves to secure those notes and bonds, and all
24other expenditures of the authority incident to and necessary or
25convenient to carry out its purposes and powers.
26(B) Any notes, bonds, or other securities issued, and the income
27from them, including any profit from the sale thereof, shall at all
28times be free from taxation by the state or any agency,
political
29subdivision, or instrumentality of the state.
30(C) Notwithstanding the provisions of subparagraph (A), for
31any indebtedness, notes, bonds, or other securities that require
32voter approval pursuant to state law, the prior approval of the board
33of supervisors shall be required. Notwithstanding the required prior
34approval of the board of supervisors, any indebtedness incurred,
35or notes, bonds, or other securities issued pursuant to this
36subparagraph shall be the indebtedness, notes, bonds, or securities
37of the authority and not of the county, and the credit of the county
38shall not be pledged or relied upon in any manner in order to incur
39the indebtedness, or issue the notes, bonds, or other securities,
40unless the board of supervisors explicitly authorizes the use of the
P496 1county’s credit. The authority shall reimburse the county for all
2costs associated with the county’s consideration of the
3indebtedness, notes, bonds, or securities, and the
authority shall
4defend, indemnify, and hold harmless the county from any and all
5liability, costs, or expenses arising from or related to the
6indebtedness, notes, bonds, or securities.
7(D) begin deleteNothing in this end deletebegin insertThis end insertsectionbegin delete shallend deletebegin insert does notend insert preclude the
8authority from repayment of its debts or other liabilities, using
9funds that are not otherwise encumbered.
10(8) To pursue its own credit rating.
11(9) To enter into a contract or agreement consistent
with this
12chapter or the laws of this state, including, but not limited to,
13contracting with any public or private entity or person for
14management or other services and personnel, and to authorize the
15chief executive officer to enter into contracts, execute all
16instruments, and do all things necessary or convenient in the
17exercise of the powers granted in this chapter.
18(10) To purchase supplies, equipment, materials, property, and
19services.
20(11) To establish policies relating to its purposes.
21(12) To acquire or contract to acquire, rights-of-way, easements,
22privileges, and property, and to construct, equip, maintain, and
23operate any and all works or improvements wherever located that
24are necessary, convenient, or proper to carry out any of the
25provisions, objects, or purposes of this chapter, and to complete,
26extend,
add to, repair, or otherwise improve any works or
27improvements acquired by it.
28(13) To participate in, contract for, and to accept, gifts, grants,
29and loans of funds, property, or other aid or finance opportunity
30in any form from the federal government, the state, a state agency,
31or other source, or combination thereof, as otherwise would be
32available to a public, government, or private entity, and to comply,
33subject to this chapter, with the terms and conditions thereof.
34(14) To invest surplus money in its own treasury, manage
35investments, and engage third-party investment managers, in
36accordance with state law.
37(15) To arrange for guarantees or insurance of its bonds, notes,
38or other obligations by the federal or state government or by a
39private insurer, and to pay the premiums thereof.
P497 1(16) To engage in managed care contracting, joint ventures,
2affiliations with other health care facilities, other health care
3providers and payers, management agreements, or to participate
4in alliances, purchasing consortia, health insurance pools,
5accountable care organizations, alternative delivery systems, or
6other cooperative arrangements, with any public or private entity.
7(17) To enter into joint powers agreements pursuant to Chapter
85 (commencing with Section 6500) of Division 7 of Title 1 of the
9Government Code. Notwithstanding any other law, the authority
10may enter into a joint powers agreement as described in Section
116523.5 of the Government Code as though that section applied to
12hospitals and other health care facilities in the County of Kern.
13(18) To establish nonprofit, for-profit, or other entities
necessary
14to carry out the duties of the authority.
15(19) To elect to transfer funds to the state and incur certified
16public expenditures in support of the Medi-Cal program and other
17programs for which federal financial participation is available.
18(20) To use a computerized management information system,
19including an electronic health records system, in connection with
20its operations, including, without limitationbegin insert,end insert the administration of
21its facilities.
22(21) To request that the board of supervisors levy a tax on behalf
23of the authority. If the board of supervisors approves the proposal
24to levy the tax, it shall call the election to seek voter approval and
25place the appropriate measure on the ballot for that
election. The
26proceeds of these taxes shall be tax proceeds of the authority and
27not of the county. The authority shall reimburse the county for all
28costs associated with the county’s consideration of those taxes,
29and shall defend, indemnify, and hold harmless the county from
30any liability, costs, or expenses arising from or related to the
31imposition of these taxes.
32(22) Notwithstanding the provisions of this chapter relating to
33the obligations and liabilities of the authority, or any other law, a
34transfer of control or ownership of the medical center to the
35authority pursuant to this chapter shall confer onto the authority
36all the rights, privileges, and authority set forth in state law to own,
37operate, and provide coverage and services through hospitals,
38clinics and other health facilities, health programs, care
39organizations, physician practice plans, delivery systems, health
P498 1care service plans, and other coverage mechanisms that may be
2
owned or operated by a county.
3(23) To engage in other activities that may be in the best interests
4of the authority and the persons served by the authority, as
5determined by the board of governors, in order to respond to
6changes in the health care industry.
7(b) The authority shall conform to the following requirements:
8(1) (A) Be a government agency that is a local unit of
9government separate and apart for all purposes from the county
10and any other public entity, and shall not be considered to be an
11agency, division, or department of the county or any other public
12entity. The authority shall not be governed by or subject to the
13civil service requirements of the county. Except as otherwise
14provided for in the enabling ordinance consistent with this chapter,
15and as set forth in Section 101853.1
relating to the personnel
16transition plan, the authoritybegin delete shallend deletebegin insert isend insert notbegin delete beend delete governed by, or subject
17to, other policies or operational rules of the county, medical center,
18or any other public entity, including, but not limited to, those
19relating to personnel and procurement.
20(B) The board of governors shall adopt written rules, regulations,
21and procedures with regard to basic human resource functions not
22inconsistent with memoranda of understanding covering employees
23represented by employee organizations or the provisions of this
24chapter. Until the time that the board of governors adopts its own
25rules, regulations, or procedures with regard to these functions,
26the existing
rules, regulations, and procedures set forth in any
27memoranda of understanding described in Section 101853.1, and
28the rules and regulations adopted by the county and described in
29paragraph (4), shall continue to apply.
30(2) Be subject to state and federal taxation laws that are
31applicable to public entities generally.
32(3) Except as otherwise specifically provided in this chapter,
33comply with the Meyers-Milias-Brown Act (Chapter 10
34(commencing with Section 3500) of Division 4 of Title 1 of the
35Government Code), thebegin insert Californiaend insert Public Records Act (Chapter
363.5 (commencing with Section 6250) of Division 7 of Title 1 of
37the Government Code), and the Ralph M. Brown Act (Chapter 9
38(commencing with Section 54950) of Part 1 of Division 2 of Title
395 of the Government Code).
P499 1(4) Be subject to the jurisdiction of the Public Employment
2Relations Board. Until the authority adopts rules and regulations
3pursuant to subdivision (a) of Section 3507 of the Government
4Code, the existing rules adopted by the county and contained in
5the county’s employer-employee relations resolution, as amended,
6shall apply, modified to account for the creation of the authority,
7and provided further that the resolution shall not contain any
8incorporation of the county’s civil service rules or county
9ordinances unless specifically addressed in this chapter.
10(5) Carry professional and general liability insurance or
11programs to the extent sufficient to cover its activities.
12(6) Comply with the requirements of Sections 53260 and 53261
13of the Government Code.
14(7) Maintain financial and accounting records.
15(8) Meet all local, state, and federal data reporting requirements.
16(c) Subject to any restrictions applicable to public agencies, and
17subject to any limitations or conditions set forth in the enabling
18ordinance adopted by the board of supervisors, the authority may
19borrow money from the county, repay debt it owes to the county,
20and use the borrowed funds to provide for its operating and capital
21needs. The county may lend the authority funds or issue revenue
22anticipation notes to obtain those funds necessary to meet its
23operating or capital needs.
24(d) Open sessions of the authoritybegin delete shallend delete constitute official
25proceedings authorized by law within the meaning of Section 47
26of the
Civil Code. The privileges set forth in that section with
27respect to official proceedingsbegin delete shallend delete apply to open sessions of the
28authority.
29(e) (1) Notwithstanding any other law, the board of governors
30may order that a meeting held solely for the purpose of discussion
31or taking action on authority trade secrets, as defined in subdivision
32(d) of Section 3426.1 of the Civil Code, or to consider and take
33action on matters pertaining to contracts and contract negotiations
34concerning all matters related to rates of payment for health care
35services arranged or provided by the authority, shall be held in
36closed session. Trade secretsbegin insert,end insert for purposes of thisbegin delete chapter shallend delete
37begin insert
chapter,end insert also include information for which the secrecy of the
38information is necessary for the authority to initiate a new service,
39program, marketing strategy, business plan, or technology, or to
40add a benefit or product, and premature disclosure of the trade
P500 1secret would create a substantial probability of depriving the
2authority of a substantial economic benefit or opportunity.
3(2) The requirements of making a public report of actions taken
4in closed session and the vote or abstention of every member
5present may be limited to a brief general description devoid of the
6information constituting the trade secret or concerning the matters
7related to rates of payment.
8(3) begin deleteThose records end deletebegin insertRecords
end insertof the authority that reveal the
9authority’s trade secrets are exempt from disclosure pursuant to
10the California Public Records Act (Chapter 3.5 (commencing with
11Section 6250) of Division 7 of Title 1 of the Government Code),
12or any similar local law requiring the disclosure of public records.
13This exemption shall apply for a period of two years after the
14service, program, marketing strategy, business plan, technology,
15benefit, or product that is the subject of the trade secret is formally
16adopted by the governing body of the authority, provided that the
17service, program, marketing strategy, business plan, technology,
18benefit, or product continues to be a trade secret. The board of
19governors may delete the portion or portions containing trade
20secrets from any documents that were finally approved in the closed
21session that are provided to persons who have made the timely or
22standing request.
23(4) This chapterbegin delete shallend deletebegin insert
doesend insert not prevent the board of governors
24from meeting in closed session as otherwise provided by law.
25(f) Notwithstanding any other law, those records of the authority
26and of the county that reveal the authority’s rates of payment for
27health care services arranged or provided by the authority or its
28deliberative processes, strategies, discussions, communications,
29or any other portion of the negotiations with providers of health
30care services or Medi-Cal, health care plans, or other payers for
31rates of payment, shall not be required to be disclosed pursuant to
32the California Public Records Act (Chapter 3.5 (commencing with
33Section 6250) of Division 7 of Title 1 of the Government Code),
34or any similar local law requiring the disclosure of public records.
35However, three years after a contract or amendment to a contract
36is fully executed, the portion of the contract or amendment
37containing the rates of payment
shall be open to inspection.
38(g) The authoritybegin delete shall beend deletebegin insert isend insert a public agency that is a local unit
39of government for purposes of eligibility with respect to grants
40and other funding and loan guarantee programs. Contributions to
P501 1the authoritybegin delete shall beend deletebegin insert areend insert tax deductible to the extent permitted by
2state and federal law. Nonproprietary income of the authoritybegin delete shall begin insert isend insert exempt from
state income taxation.
3beend delete
4(h) Unless otherwise provided by the board of supervisors by
5way of resolution, the authority is empowered, or the board of
6supervisors is empowered on behalf of the authority, to apply as
7a public agency for one or more licenses for the provision of health
8care or the operation of a health care service plan pursuant to
9statutes and regulations governing licensing as currently written
10or subsequently amended.
11(i) The statutory authority of a board of supervisors to prescribe
12rules that authorize a county hospital to integrate its services with
13those of other providers into a system of community service that
14offers free choice of hospitals to those requiring hospital care, as
15set forth in Section 14000.2 of the Welfare and Institutions Code,
16begin delete shallend delete apply to the authority and
the board of governors.
17(j) (1) Except as otherwise provided in this chapter, provisions
18of the Evidence Code, the Government Code, including the
19begin insert Californiaend insert Public Records Act (Chapter 3.5 (commencing with
20Section 6250) of Division 7 of Title 1 of the Government Code),
21the Civil Code, the Business and Professions Code, and other
22applicable law pertaining to the confidentiality of peer review
23activities of peer review bodiesbegin delete shallend delete apply to the peer review
24activities of the authority, or any peer review body, as defined in
25paragraph (1) of subdivision (a) of Section 805 of the Business
26and Professions Code, formed pursuant to the powers granted to
27the authority. The laws pertaining to the confidentiality of peer
28review activities shall
be together construed as extending, to the
29extent permitted by law, the maximum degree of protection of
30confidentiality.
31(2) Notwithstanding Article 9 (commencing with Section 11120)
32of Chapter 1 of Part 1 of Division 3 of Title 2 of, and Chapter 9
33(commencing with Section 54950) of Part 1 of Division 2 of Title
345 of, the Government Code, or any other provision of law, any
35peer review body formed pursuant to the powers granted to the
36authority, may, at its discretion and without notice to the public,
37meet in closed session, so long as the purpose of the meeting is
38the peer review body’s discharge of its responsibility to evaluate
39and improve the quality of care rendered by health facilities and
40health practitioners. The peer review body and its members shall
P502 1receive, to the fullest extent, all immunities, privileges, and
2protections available to those peer review bodies, their individual
3members, and persons or entities assisting in the peer
review
4process, including those afforded by Section 1157 of the Evidence
5Code and Section 1370. Peer review proceedings shall constitute
6an official proceeding authorized by law within the meaning of
7Section 47 of the Civil Code and those privileges set forth in that
8section with respect to official proceedings shall apply to peer
9review proceedings of the authority.
10(3) Notwithstanding the California Public Records Act (Chapter
113.5 (commencing with Section 6250) of Division 7 of Title 1 of
12the Government Code), or Article 9 (commencing with Section
1311120) of Chapter 1 of Part 1 of Division 3 of Title 2 of, and
14Chapter 9 (commencing with Section 54950) of Part 1 of Division
152 of Title 5 of, the Government Code, or any other provision of
16state or local law requiring disclosure of public records, those
17records of a peer review body formed pursuant to the powers
18granted to the authority, shall not be required to be disclosed. The
19records and
proceedings of the peer review body and its individual
20members shall receive, to the fullest extent, all immunities,
21privileges, and protections available to those records and
22proceedings, including those afforded by Section 1157 of the
23Evidence Code and Section 1370begin delete of the Health and Safety Codeend delete.
24(4) If the authority is required by law or contractual obligation
25to submit to the state or federal government peer review
26information or information relevant to the credentialing of a
27participating provider, that submissionbegin delete shallend deletebegin insert doesend insert not constitute a
28waiver of confidentiality.
29(5) Notwithstanding any other law,
Section 1461begin delete shall applyend delete
30begin insert
appliesend insert to hearings on reports of hospital medical audit or quality
31assurance committees.
32(k) Except as expressly provided by other provisions of this
33section, all exemptions and exclusions from disclosure as public
34records pursuant to this chapter and the California Public Records
35Act, including, but not limited to, those pertaining to trade secrets
36and information withheld in the public interest,begin delete shall beend deletebegin insert areend insert fully
37applicable to the authority, and for the board of supervisors, and
38all state and local agencies with respect to all writings that the
39authority is required to prepare, produce, or submit, and which
40shall not constitute a waiver of exemption from disclosure.
P503 1(l) The authority and the county, or any combination thereof,
2may engage in marketing, advertising, and promotion of the
3medical and health care services made available to the community
4by the authority.
5(m) The board of governorsbegin delete shall haveend deletebegin insert hasend insert authority over
6procurement and contracts for the authority. The board of governors
7shall adopt written rules, regulations, and procedures with regard
8to these functions. Contracts by and between the authority and a
9public agency, and contracts by and between the authority and
10providers of health care, goods, or services, may be let on a nonbid
11basis and shall be exempt from Chapter 2 (commencing with
12Section 10290) of Part 2 of Division 2 of the Public
Contract Code.
13(n) The authority may contract with the county for services and
14personnel upon mutually agreeable terms.
15(o) Notwithstanding Article 4.7 (commencing with Section
161125) of Chapter 1 of Division 4 of Title 1 of the Government
17Code, related to incompatible activities, Section 1099 of the
18Government Code, related to incompatible offices, or any other
19law, a member of the authority’s administrative staff shall not be
20considered to hold an incompatible office or to be engaged in
21activities inconsistent and incompatible with his or her duties as
22a result of his or her employment or affiliation with the county or
23an agency of the county.
24(p) The board of governors and the officers and employees of
25the authority are public employees for purposes of Division 3.6
26(commencing with Section 810) of Title 1 of the
Government
27Code, relating to claims and actions against public entities and
28public employees, and shall be protected by the immunities
29applicable to public entities and public employees governed by
30Part 2 (commencing with Section 814) of Division 3.6 of Title 1
31of the Government Code, except as provided by other statutes or
32regulations that apply expressly to the authority.
Section 101855.1 of the Health and Safety Code is
34amended to read:
(a) Transfer by the county to the authority of the
36maintenance, operation, and management or ownership of the
37medical center, whether or not the transfer includes the
38surrendering by the county of the existing general acute care
39hospital license and corresponding application for a change of
40ownership of the license,begin delete shallend deletebegin insert doesend insert not affect the eligibility of the
P504 1county to undertake, andbegin delete shall authorizeend deletebegin insert authorizesend insert the authority,
2subject to applicable
requirements, to do any of the following:
3(1) With the written consent of the county, participate in and
4receive allocations pursuant to the California Health Care for
5Indigents Program pursuant to Chapter 5 (commencing with
6Section 16940) of Part 4.7 of Division 9 of the Welfare and
7Institutions Code, or similar programs, as may be identified or
8earmarked by the county for indigent health care services of the
9type provided by the medical center.
10(2) With the written consent of the county, participate in and
11receive allocations of local revenue fund amounts provided
12pursuant to Chapter 6 (commencing with Section 17600) of Part
135 of Division 9 of the Welfare and Institutions Code as may be
14identified or earmarked by the county for indigent health care
15services of the type provided by the medical center.
16(3) Participate in the financing of, as applicable, and receive,
17Medicaid disproportionate share hospital payments available to a
18county hospital or designated public hospital, or any other
19successor or modified payment or funding that is intended to assist
20hospitals that serve a disproportionate share of low-income patients
21with special needs. The allocation of Medicaid disproportionate
22share hospital payments shall be made in consultation with the
23State Department of Health Care Services and other designated
24safety net hospitals.
25(4) Participate in the financing of, as applicable, and receive,
26Medi-Cal payments and supplemental reimbursements, including,
27but not limited to, payments made pursuant to Sections 14105.96,
2814105.965, 14166.4, 14182.15, and 14199.2 of the Welfare and
29Institutions Code, payments described in paragraph (4) of
30subdivision (b) of Section 14301.4 of, and Section 14301.5 of, the
31Welfare and Institutions
Code, and payments made available to a
32county provider or designated public hospital, or governmental
33entity with which it is affiliated, under any other successor or
34modified Medicaid payment system.
35(5) Participate in the financing of, as applicable, and receive,
36safety net care pool funding, stabilization funding, delivery system
37reform incentive pool payments, and any other funding available
38to a county provider or designated public hospital, or governmental
39entities with which it is affiliated under the Medicaid demonstration
40project authorized pursuant to Article 5.2 (commencing with
P505 1Section 14166) and Article 5.4 (commencing with Section 14180)
2of Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions
3Code, or under any other successor or modified Medicaid
4demonstration project or Medicaid payment system. The allocation
5of safety net care pool funds shall be made in consultation with
6the State Department of Health Care
Services and other designated
7safety net hospitals.
8(6) Participate in the financing, administration, and provision
9of services under the Low Income Health Program authorized
10pursuant to Part 3.6 (commencing with Section 15909) of Division
119 of the Welfare and Institutions Code, or under any other successor
12or modified Medicaid demonstration project or Medicaid payment
13system if the authority enters into an agreement with the county
14concerning the provision of services by, and payment for these
15services to, the county.
16(7) Participate in and receive direct grant and payment
17allocations pursuant to Article 5.230 (commencing with Section
1814169.50) of Chapter 7 of Part 3 of Division 9 of the Welfare and
19Institutions Code, or under any other successor or modified direct
20grant and payment systems funded by hospital or other provider
21fee assessments.
22(8) Receive Medi-Cal capital supplements pursuant to Section
2314085.5 of the Welfare and Institutions Code, or any other
24successor or modified Medi-Cal debt service reimbursement
25program. Notwithstanding any other law, supplemental payments
26shall be made to the medical center under those programs for the
27debt service costs incurred by the county, and, if applicable, by
28the authority to the extent that debt service responsibility is
29refinanced, transferred to, or otherwise assumed by, directly or
30indirectly, the authority.
31(9) Receive any other funds, or preference in the assignment of
32health care plan enrollees, that would otherwise be available to a
33county health plan, provider, or designated public hospital, or
34governmental entity with which it is affiliated.
35(b) The transfer of the medical center to the authority
pursuant
36to this chapterbegin delete shallend deletebegin insert doesend insert not otherwise disqualify the county or
37the authority from participating in any of the following:
38(1) Local, state, and federal funding sources either specific to
39county or other publicly owned or operated health care service
40plans, hospitals, or other health care providers, including, but not
P506 1limited to, ambulatory care clinics, health systems, practices,
2designated public hospitals, or governmental entities with which
3they are affiliated, for which there are special provisions specific
4to those plans, hospitals, ambulatory care clinics, health systems,
5practices, other health care providers or governmental entities with
6which they are affiliated.
7(2) All
funding programs in which the county, by itself or on
8behalf of the medicalbegin delete centerend deletebegin insert
center,end insert had participated prior to the
9creation of the authority, or would otherwise be qualified to
10participate in had the authority not been created, and the
11maintenance, operation, and management or ownership of the
12medical center not been transferred to the authority pursuant to
13this chapter.
Chapter 6 (commencing with Section 101860) of
15Part 4 of Division 101 of the Health and Safety Code, as added by
16Section 2 of Chapter 925 of the Statutes of 1997, is repealed.
Section 102430 of the Health and Safety Code, as
18added by Section 7 of Chapter 334 of the Statutes of 2014, is
19amended to read:
(a) The second section of the certificate of live birth
21as specified in subdivision (b) of Section 102425, the electronic
22file of birth information collected pursuant to subparagraphs (B)
23to (F), inclusive, of paragraph (2) of subdivision (a) of Section
24102426, the birth mother linkage collected pursuant to Section
25102425.2, and the second section of the certificate of fetal death
26as specified in Section 103025,begin delete shall beend deletebegin insert areend insert confidential. Access
27to the confidential portion of any certificate of live birth or fetal
28death, the electronic file of birth information collected pursuant
29to subparagraphs (B) to (F), inclusive, of paragraph (2) of
30
subdivision (a) of Section 102426, and the birth mother linkage
31collected pursuant to Section 102425.2 shall be limited to the
32following:
33(1) Department staff.
34(2) Local registrar’s staff and local health department staff when
35approved by the local registrar or local health officer, respectively.
36(3) The county coroner.
37(4) Persons with a valid scientific interest as determined by the
38State Registrar, who are engaged in demographic,begin delete epidemiologicalend delete
39begin insert epidemiological,end insert or other similar studies related to health, and who
P507 1agree to maintain confidentiality as prescribed
by this part and by
2regulation of the State Registrar.
3(5) The parent who signed the certificate or, if no parent signed
4the certificate, the mother.
5(6) The person named on the certificate.
6(7) begin deleteAny end deletebegin insertA end insertperson who has petitioned to adopt the person named
7on the certificate of live birth, subject to Section 102705 of the
8Health and Safety Code and Sections 9200 and 9203 of the Family
9Code.
10(b) (1) The department shall maintain an accurate record of all
11persons who are given access to the confidential portion of the
12certificates. The record shall
include all of the following:
13(A) The name of the person authorizing access.
14(B) The name, title, and organizational affiliation of persons
15given access.
16(C) The dates of access.
17(D) The specific purpose for whichbegin insert theend insert information is to be
18used.
19(2) The record of access shall be open to public inspection
20during normal operating hours of the department.
21(c) All research proposed to be conducted using the confidential
22medical and social information on the birth certificate or fetal death
23certificate shall first be reviewed
by the appropriate committee
24constituted for the protection of human subjects that is approved
25by the federal Department of Health and Human Services and has
26a general assurance pursuant to Part 46 of Title 45 of the Code of
27Federal Regulations. Information shall not be released until the
28request for information has been reviewed by the Vital Statistics
29Advisory Committee and the committee has recommended to the
30State Registrar that the information shall be released.
31(d) This section shall become operative on January 1, 2016.
The heading of Chapter 2 (commencing with Section
33104145) of Part 1 of Division 103 of the Health and Safety Code
34 is amended to read:
35
Section 111825 of the Health and Safety Code is
39amended to read:
(a) begin deleteAny end deletebegin insertA end insertperson who violatesbegin delete anyend deletebegin insert aend insert provision of this
2part orbegin delete anyend deletebegin insert aend insert regulation adopted pursuant to this part shall, if
3convicted, be subject to imprisonment for not more than one year
4in a county jail or a fine of not more than one thousand dollars
5($1,000), or
both the imprisonment and fine.
6(b) Notwithstanding subdivision (a),begin delete anyend deletebegin insert aend insert person who violates
7Section 111865 by removing, selling, or disposing of an embargoed
8food, drug, device, or cosmetic without the permission of an
9authorized agent of the department or court shall, if convicted, be
10subject to imprisonment for not more than one year in a county
11jail or a fine of not more than ten thousand dollars ($10,000), or
12both the fine and imprisonment.
13(c) (1) Notwithstanding subdivision (a),begin delete anyend deletebegin insert aend insert
person who
14purchases or sells a foreign dangerous drug or medical device, an
15illegitimate product, as defined in Section 360eee(8) of Title 21
16of the United States Code, orbegin insert aend insert suspect product, as defined in
17Section 360eee(21) of Title 21 of the United States Code, that is
18not approved or otherwise authorized by the United States Food
19and Drug Administration or that is obtained outside of the licensed
20supply chain regulated by the United States Food and Drug
21Administration, California State Board of Pharmacy, or State
22Department of Public Health is guilty of a misdemeanor and subject
23to imprisonment for not more than one year in a county jail, a fine
24of not more than ten thousand dollars ($10,000) per occurrence,
25or both the imprisonment and fine.
26(2) This subdivision does not apply to those individuals
27determined by the
United States Food and Drug Administration
28to have acted in compliance with the requirements under Part H
29(commencing with Section 360eee) of Subchapter V of Chapter 9
30of Title 21 of the United States Code with regard to the illegitimate
31or suspect products.
32(d) If the violation is committed after a previous conviction
33under this section that has become final, or if the violation is
34committed with intent to defraud or mislead, or if the person
35committed a violation of Section 110625 or 111300 that was
36intentional or that was intended to cause injury, the person shall
37be subject to imprisonment for not more than one year in a county
38jail, imprisonment in the state prison, or a fine of not more than
39ten thousand dollars ($10,000), or both the imprisonment and fine.
P509 1(e) This section does not preclude punishment under any other
2law that provides for a greater
punishment.
Section 115880 of the Health and Safety Code is
4amended to read:
(a) The department shall, by regulation and in
6consultation with the board, local health officers, and the public,
7establish, maintain, and amend as necessary, minimum standards
8for the sanitation of public beaches, including, but not limited to,
9the removal of refuse, as it determines are reasonably necessary
10for the protection of the public health and safety.
11(b) Prior to final adoption or amendment by the department, the
12regulations and standards required by this section shall undergo
13an external comprehensive review process similar to the process
14set forth in Section 57004begin delete of the Health and Safety Codeend delete.
15(c) The regulations shall, at a minimum, do all of the following:
16(1) Require the testing of the waters adjacent to all public
17beaches for microbiological contaminants, including, but not
18limited to, total coliform, fecal coliform, and enterococci bacteria.
19The department may require the testing of waters adjacent to all
20public beaches for microbiological indicators other than those set
21forth in this paragraph, or a subset of those set forth in this
22paragraph, if the department affirmatively establishes, based on
23the best available scientific studies and the weight of the evidence,
24that the alternative indicators are as protective of the public health.
25(2) Establish protective minimum standards for total coliform,
26fecal coliform, and enterococci bacteria, or for other
27microbiological indicators that the department determines are
28appropriate for testing pursuant to paragraph (1).
29(3) Require that the waters adjacent to public beaches are tested
30for total coliform, fecal coliform, and enterococci bacteria, or for
31other microbiological indicators that the department determines
32are appropriate for testing pursuant to paragraph (1). Except as set
33forth in subdivision (e), testing shall be conducted on at least a
34weekly basis from April 1 to October 31, inclusive, of each year
35beginning in 2012, if both of the following apply:
36(A) The beach is visited by more than 50,000 people annually.
37(B) The beach is located on an area adjacent to a storm drain
38that flows in the summer.
39(d) Notwithstanding subdivision (a), if a local health officer
40demonstrates or has demonstrated through side-by-side testing
P510 1over a beach season that the use of
United States Environmental
2Protection Agency method 1609 or 1611, or any equivalent or
3improved rapid detection method published by the United States
4Environmental Protection Agency for use in beach water quality
5assessment or approved as an alternative test procedure pursuant
6to Part 136 of Title 40 of the Code of Federal Regulations, to
7determine the level of enterococci bacteria as a single indicator
8provides a reliable indication of overall microbiological
9contamination conditions at one or more beach locations within
10that health officer’s jurisdiction, the department may authorize the
11use of that testing method at those beach locations instead of other
12testing methods. In making that determination, the department
13shall take into account whether an alternative indicator or subset
14of indicators, with the associated test method, can provide results
15more quickly, thereby reducing the period of time the public is at
16risk while waiting for contamination to be confirmed.
17(e) The monitoring frequency and locations established pursuant
18to this section and related regulations may be reduced or altered
19only after the testing required pursuant to paragraph (3) of
20subdivision (c) reveals levels of microbiological contaminants that
21do not exceed, for a period of two years, the minimum protective
22standards established pursuant to this section.
23(f) The local health officerbegin delete shall beend deletebegin insert isend insert responsible for testing the
24waters adjacent to, and coordinating the testing of, all public
25beaches within his or her jurisdiction.
26(g) The local health officer may meet the testing requirements
27of this section by utilizing
test results from other parties conducting
28microbiological contamination testing of the waters under his or
29her jurisdiction.
30(h) This section does not require a wastewater treatment agency
31or other party conducting microbiological contamination testing
32of the waters under his or her jurisdiction, who provides those test
33results to a local health officer pursuant to this section, to use
34United States Environmental Protection Agency method 1609 or
351611, or any equivalent or improved rapid detection method
36published by the United States Environmental Protection Agency
37for use in beach water quality assessment or approved as an
38alternative test procedure pursuant to Part 136 of Title 40 of the
39Code of Federal Regulations, for total maximum daily load
40implementation, waste discharge requirements, or other monitoring
P511 1programs required to be implemented pursuant to Division 7
2(commencing with Section 13000) of the Water Code.
3(i) Any city or county may adopt standards for the sanitation of
4public beaches within its jurisdiction that are stricter than the
5standards adopted by the department pursuant to this section.
Section 116283 of the Health and Safety Code, as
7amended by Section 11 of Chapter 298 of the Statutes of 2009, is
8repealed.
This chapter shall apply to a food facility that is
10regulated pursuant to
the California Retail Food Code only if the
11human consumption includes drinking of water.
Section 116612 of the Health and Safety Code, as
13added by Section 11 of Chapter 814 of the Statutes of 1997, is
14repealed.
On or before January 1, 1999, the California Drinking
16Water and Toxic Enforcement Act Scientific Advisory Panel shall
17make a recommendation to the Office of Environmental Health
18Hazard Assessment on whether MTBE should be listed as a
19carcinogenic or reproductive toxin, as set forth in Section 12000
20and following of Title 22 of the California Code of Regulations.
Section 116612 of the Health and Safety Code, as
22added by Section 3 of Chapter 815 of the Statutes of 1997, is
23amended to read:
On or before January 1, 1999, the California Drinking
25Water and Toxic Enforcement Actbegin delete Scientific Advisory Panelend delete
26begin insert scientific advisory panelend insert shall make a recommendation to the
27Office of Environmental Health Hazard Assessment on whether
28MTBE should be listed as a carcinogenic or reproductive toxin as
29set forth inbegin delete Section 12000 and following of Title 22end deletebegin insert Chapter 1
30(commencing with Section 25102) of Division 4 of Title 27end insert of the
31California
Code of Regulations.
Section 119316 of the Health and Safety Code is
33amended to read:
(a) A mobile body art facility shall meet all the
35applicable requirements in Article 1 (commencing with Section
36119300) to Article 4 (commencing with Section 119312),begin delete inclusiveend delete
37begin insert inclusive,end insert and Article 6 (commencing with Section 119319), unless
38specifically exempted by this article.
39(b) A mobile body art facility that is either a special purpose
40commercial modular and coach, as defined by Section 18012.5,
P512 1or a commercial modular coach, as defined by Section 18001.8,
2shall be certified by the Department of Housing and Community
3Development, consistent with Chapter 4 (commencing
with Section
418025) of Part 2 of Division 13, and regulations promulgated
5pursuant to that chapter.
6(c) The Department of Motor Vehicles occupational licensing
7requirements, Division 5 (commencing with Section 11100) of the
8Vehicle Code,begin delete shallend delete also apply to these mobile body art facilities.
9(d) The local enforcement agency shall approve all equipment
10installation prior to operation.
Section 120155 of the Health and Safety Code, as
12amended by Section 174 of Chapter 130 of the Statutes of 2007,
13is amended and renumbered to read:
(a) Any manufacturer or distributor of the influenza
16vaccine, or nonprofit health care service plan that exclusively
17contracts with a single medical group in a specified geographic
18area to provide, or to arrange for the provision of, medical services
19to its enrollees, shall report the information described in subdivision
20(c) relating to the supply of the influenza vaccine to the department
21upon notice from the department.
22(b) Within each county or city health jurisdiction, entities that
23have possession of, or have a legal right
to obtain possession of,
24the influenza vaccine, or entities that are conducting or intend to
25conduct influenza clinics for the public, their residents, or their
26employees, except those entities described in subdivision (a), shall
27cooperate with the local health officer in determining local
28inventories of influenza vaccine, including providing inventory,
29orders, and distribution lists in a timely manner, when necessary.
30(c) The information reported pursuant to subdivision (a) shall
31include, but is not limited to, the amount of the influenza vaccine
32that has been shipped, and the name, address, and, if applicable,
33the telephone number of the recipient.
34(d) Subdivisions (a), (b), and (c)begin delete shallend deletebegin insert doend insert
not apply to a physician
35and surgeon practice, unless the practice is an occupational health
36provider who conducts influenza vaccination campaigns on behalf
37of a corporation.
38(e) It is the intent of the Legislature in enacting this section to
39assist small physician and surgeon practices, nursing facilities, and
40other health care providers that provide care for patients at risk of
P513 1illness or death from influenza by facilitating the sharing of vaccine
2supplies, if necessary, between providers within a local jurisdiction.
3(f) If a business believes that the information required by this
4section involves the release of a trade secret, the business shall
5nevertheless disclose the information to the department, and shall
6notify the department in writing of that belief at the time of
7disclosure. As used in this section, “trade secret” has the meanings
8given to it by Section
6254.7 of the Government Code and Section
9begin delete 1060end deletebegin insert
1061end insert of the Evidence Code. Any information, including
10identifying information, including, but not limited to, the name of
11the agent or contact person of an entity that receives the influenza
12vaccine from a manufacturer or distributor, or nonprofit health
13care service plan described in subdivision (a), and the receiving
14entity’s address and telephone number, that is reported pursuant
15to this section shall not be disclosed by the department to anyone,
16except to an officer or employee of the county, city, city and
17county, or the state in connection with the official duties of that
18officer or employee to protect the public health.
Section 120393 of the Health and Safety Code is
20amended to read:
(a) The State Department of Public Health shall post
22educational information, in accordance with the latest
23recommendations of thebegin insert federalend insert Centers for Disease Control and
24Prevention, regarding influenza disease and the availability of
25influenza vaccinations on the department’s Internet Web site. It is
26the intent of the Legislature to increase the average number of
27Californians who receive an influenza vaccination.
28(b) The educational information posted on the department’s
29Internet Web site pursuant to subdivision (a) shall include, but not
30be limited to, all of the following:
31(1) The health benefits of an influenza vaccination.
32(2) That the influenza vaccination may be a covered benefit for
33those with health insurance coverage.
34(3) That influenza vaccinations may be available for a minimal
35fee to those individuals who do not have health insurance coverage.
36(4) The locations where free or low-cost vaccinations are
37available.
38(c) The department may use additional available resources to
39educate the public about the information described in subdivision
40(b), including public service announcements, media events, public
P514 1outreach to individuals and groups who are susceptible to influenza,
2and any other preventive and wellness education efforts
3recommended by public health officials.
Section 121025 of the Health and Safety Code is
5amended to read:
(a) Public health records relating to human
7immunodeficiency virus (HIV) or acquired immunodeficiency
8syndrome (AIDS), containing personally identifying information,
9that were developed or acquired by a state or local public health
10agency, or an agent of that agency,begin delete shall beend deletebegin insert areend insert confidential and
11shall not be disclosed, except as otherwise provided by law for
12public health purposes or pursuant to a written authorization by
13the person who is the subject of the record or by his or her guardian
14or conservator.
15(b) In accordance with subdivision (g) of Section 121022, a
16state or
local public health agency, or an agent of that agency, may
17disclose personally identifying information in public health records,
18as described in subdivision (a), to other local, state, or federal
19public health agencies or to corroborating medical researchers,
20when the confidential information is necessary to carry out the
21duties of the agency or researcher in the investigation, control, or
22surveillance of disease, as determined by the state or local public
23health agency.
24(c) Any disclosures authorized by subdivision (a), (b), or this
25subdivision shall include only the information necessary for the
26purpose of that disclosure and shall be made only upon the
27agreement that the information will be kept confidential as
28described in subdivision (a). Except as provided in paragraphs (1)
29to (3), inclusive, or as otherwise provided by law, any disclosure
30authorized by subdivision (a) or (b) shall not be made without
31written authorization as described
in subdivision (a). Any
32unauthorized further disclosure shall be subject to the penalties
33described in subdivision (e).
34(1) Notwithstanding any other law, the following disclosures
35begin delete shall beend deletebegin insert areend insert authorized for the purpose of enhancing the
36completeness of reporting to the federal Centers for Disease
37Control and Prevention (CDC) of HIV/AIDS and coinfection with
38tuberculosis, syphilis, gonorrhea, chlamydia, hepatitis B, hepatitis
39C, and meningococcal infection:
P515 1(A) The local public health agency HIV surveillance staff may
2further disclose the information to the health care provider who
3provides HIV care to the HIV-positive person who is the subject
4of the record for the purpose of assisting in
compliance with
5subdivision (a) of Section 121022.
6(B) Local public health agency tuberculosis control staff may
7further disclose the information to state public health agency
8tuberculosis control staff, who may further disclose the information,
9without disclosing patient identifying information, to the CDC, to
10the extent the information is requested by the CDC and permitted
11by subdivision (b), for purposes of the investigation, control, or
12surveillance of HIV and tuberculosis coinfections.
13(C) Local public health agency sexually transmitted disease
14control staff may further disclose the information to state public
15health agency sexually transmitted disease control staff, who may
16further disclose the information, without disclosing patient
17identifying information, to the CDC, to the extent it is requested
18by the CDC and permitted by subdivision (b), for the purposes of
19the
investigation, control, or surveillance of HIV and syphilis,
20gonorrhea, or chlamydia coinfection.
21(D) For purposes of the investigation, control, or surveillance
22of HIV and its coinfection with hepatitis B, hepatitis C, and
23meningococcal infection, local public health agency communicable
24disease staff may further disclose the information to state public
25health agency staff, who may further disclose the information,
26without disclosing patient identifying information, to the CDC to
27the extent the information is requested by the CDC and permitted
28by subdivision (b).
29(2) Notwithstanding any other law, the following disclosures
30begin delete shall beend deletebegin insert areend insert authorized for the purpose of facilitating appropriate
31
HIV/AIDS medical care and treatment:
32(A) State public health agency HIV surveillance staff, AIDS
33Drug Assistance Program staff, and care services staff may further
34disclose the information to local public health agency staff, who
35may further disclose the information to the HIV-positive person
36who is the subject of the record, or the health care provider who
37provides his or her HIV care, for the purpose of proactively offering
38and coordinating care and treatment services to him or her.
39(B) AIDS Drug Assistance Program staff and care services staff
40in the State Department of Public Health may further disclose the
P516 1information directly to the HIV-positive person who is the subject
2of the record or the health care provider who provides his or her
3HIV care, for the purpose of proactively offering and coordinating
4care and treatment services to him or her.
5(C) Local public health agency staff may further disclose
6acquired or developed information to the HIV-positive person who
7is the subject of the record or the health care provider who provides
8his or her HIV care for the purpose of proactively offering and
9coordinating care and treatment services to him or her.
10(3) Notwithstanding any other law, for the purpose of facilitating
11appropriate medical care and treatment of persons coinfected with
12HIV and tuberculosis, syphilis, gonorrhea, chlamydia, hepatitis B,
13hepatitis C, or meningococcal infection, local public health agency
14sexually transmitted disease control, communicable disease control,
15and tuberculosis control staff may further disclose the information
16to state or local public health agency sexually transmitted disease
17control, communicable disease control, and tuberculosis control
18staff, the HIV-positive person who is the
subject of the record, or
19the health care provider who provides his or her HIV, tuberculosis,
20hepatitis B, hepatitis C, meningococcal infection, and sexually
21transmitted disease care.
22(4) For the purposes of paragraphs (2) and (3), “staff”begin delete shallend deletebegin insert doesend insert
23 not include nongovernmental entities, but shall include state and
24local contracted employees who work within state and local public
25health departments.
26(d) A confidential public health record, as defined in subdivision
27(c) of Section 121035, shall not be disclosed, discoverable, or
28compelled to be produced in any civil, criminal, administrative,
29or other proceeding.
30(e) (1) A person who negligently discloses the content of a
31confidential public health record, as defined in subdivision (c) of
32Section 121035, to a third party, except pursuant to a written
33authorization, as described in subdivision (a), or as otherwise
34authorized by law, shall be subject to a civil penalty in an amount
35not to exceed five thousand dollars ($5,000), plus court costs, as
36determined by the court. The penalty and costs shall be paid to the
37person whose record was disclosed.
38(2) A person who willfully or maliciously discloses the content
39of any confidential public health record, as defined in subdivision
40(c) of Section 121035, to a third party, except pursuant to a written
P517 1authorization, or as otherwise authorized by law, shall be subject
2to a civil penalty in an amount not less than five thousand dollars
3($5,000) and not more than twenty-five thousand dollars ($25,000),
4plus court costs, as determined by the court. The
penalty and costs
5shall be paid to the person whose confidential public health record
6was disclosed.
7(3) A person who willfully, maliciously, or negligently discloses
8the content of a confidential public health record, as defined in
9subdivision (c) of Section 121035, to a third party, except pursuant
10to a written authorization, or as otherwise authorized by law, that
11results in economic, bodily, or psychological harm to the person
12whose confidential public health record was disclosed, is guilty
13of a misdemeanor, punishable by imprisonment in a county jail
14for a period not to exceed one year, or a fine of not to exceed
15twenty-five thousand dollars ($25,000), or both, plus court costs,
16as determined by the court. The penalty and costs shall be paid to
17the person whose confidential public health record was disclosed.
18(4) A person who commits an act described in paragraph (1),
19(2), orbegin delete (3), shall beend deletebegin insert
(3) isend insert liable to the person whose confidential
20public health record was disclosed for all actual damages for
21economic, bodily, or psychological harm that is a proximate result
22of the act.
23(5) Each violation of this section is a separate and actionable
24offense.
25(6) This section does not limit or expand the right of an injured
26person whose confidential public health record was disclosed to
27recover damages under any other applicable law.
28(f) In the event that a confidential public health record, as
29defined in subdivision (c) of Section 121035, is disclosed, the
30information shall not be used to determinebegin delete employability,end delete
31begin insert
employabilityend insert
or insurability of a person.
Section 123223 of the Health and Safety Code is
33amended to read:
(a) The Children’s Medical Services Rebate Fund is
35hereby created as a special fund in the State Treasury.
36(b) All rebates for the delivery of health care, medical supplies,
37pharmaceuticals, including blood replacement products, and
38equipment for clients enrolled in the state funded Genetically
39Handicappedbegin delete Person’send deletebegin insert Personsend insert Program, Chapter 2 (commencing
40with Section 125125) of Part 5, and the California Children’s
P518 1Services Program, Article 5 (commencing with Section 123800)
2of Chapter 3 of Part 2, and, notwithstanding Section 16305.7
of
3the Government Code, interest earned on these moneys, shall be
4deposited in the Children’s Medical Services Rebate Fund
5exclusively to cover costs related to services, and the administration
6of services, provided through the Genetically Handicappedbegin delete Person’send delete
7begin insert Personsend insert Program and California Children’s Services Program.
8(c) Notwithstanding Section 13340 of the Government Code,
9moneys in the Children’s Medical Services Rebate Fundbegin delete shall beend delete
10begin insert areend insert continuously appropriated without regard to fiscal year to the
11State Department of Healthbegin insert
Careend insert Services and available for
12expenditure for those purposes specified under this section.
Section 124995 of the Health and Safety Code is
14amended to read:
The following programs shall comply with the
16regulations established pursuant to the Hereditary Disordersbegin delete Act begin insert Act, as defined in Section 27:end insert
17(Section 27):end delete
18(a) The California Children’s Services Program under Article
195 (commencing with Section 123800) of Chapter 3 of Part 2.
20(b) Prenatal testing programs for newborns under Sections
21125050 to 125065, inclusive.
22(c) Medical testing programs for newborns under the Maternal
23and
Child Health Programbegin delete Act (Section 27).end deletebegin insert
Act, as defined in
24Section 27.end insert
25(d) Programs of the genetic disease unit under Section 125000.
26(e) Child healthbegin insert andend insert disability prevention programs under
27Article 6 (commencing with Section 124025) of Chapter 3 of Part
282 and Section 120475.
29(f) Geneticallybegin delete handicapped person’s programsend deletebegin insert Handicapped
30Persons Programend insert under Article 1 (commencing with Section
31125125) of Chapter 2.
32(g) Medi-Cal Benefits Program under Article 4
(commencing
33with Section 14131) of Chapter 7 of Part 3 of Division 9 of the
34Welfare and Institutions Code.
Section 125125 of the Health and Safety Code is
36amended to read:
This article shall be known and may be cited as the
38Holden-Moscone-Garamendi Genetically Handicappedbegin delete Person’send delete
39begin insert Personsend insert Program.
Section 125130 of the Health and Safety Code is
2amended to read:
begin insert(a)end insertbegin insert end insert The Director of Health Care Services shall
4establish and administer a program for the medical care of persons
5with genetically handicapping conditions, including cystic fibrosis,
6hemophilia, sickle cell disease, Huntington’s disease, Friedreich’s
7Ataxia, Joseph’s disease, Von Hippel-Landau syndrome, and the
8following hereditary metabolic disorders: phenylketonuria,
9homocystinuria, branched chain amino acidurias, disorders of
10propionate and methylmalonate metabolism, urea cycle disorders,
11hereditary orotic aciduria, Wilson’s Disease, galactosemia,
12disorders of lactate and pyruvate metabolism, tyrosinemia,
13
hyperornithinemia, and other genetic organic acidemias that require
14specialized treatment or service available from only a limited
15number of program-approved sources.
16 The
end delete
17begin insert(b)end insertbegin insert end insertbegin insertTheend insert program shall also provide access to social support
18services, that may help ameliorate the physical, psychological, and
19economic problems attendant to genetically handicapping
20conditions, in order that the genetically handicapped person may
21function at an optimal level commensurate with the degree of
22impairment.
23 The
end delete
24begin insert(c)end insertbegin insert end insertbegin insertTheend insert medical and social support services may be obtained
25through physicians and surgeonsbegin delete, genetically handicapped person’s begin insert
Genetically Handicapped Persons Programend insert
specialized
26programend delete
27centers, and other providers that qualify pursuant to the regulations
28of the department to provide the services. “Medical care,” as used
29in this section, is limited to noncustodial medical and support
30services.
31 The
end delete
32begin insert(d)end insertbegin insert end insertbegin insertTheend insert director shall adopt regulations that are necessary for
33the implementation of this article.
Section 125160 of the Health and Safety Code is
35amended to read:
The department shall receive and expend all funds
37made available to it by the federal government, the state, its
38political subdivisions or from other sources for the purposes of
39this article. Payment forbegin delete genetically handicapped person’s programend delete
P520 1begin insert the Genetically Handicapped Persons Programend insert shall be made by
2the department.
Section 125175 of the Health and Safety Code is
4amended to read:
The health care benefits and services specified in this
6article, to the extent that the benefits and services are neither
7provided under any other federal or state law nor provided nor
8available under other contractual or legal entitlements of the person,
9shall be provided to any patient who is a resident of this state and
10is made eligible by this article. After the patient has utilized the
11contractual or legal entitlements, the payment liability under
12begin delete Section 125165 or Section 125166, whichever shall be applicable begin insert Section 125166end insert shall then be applied to the remaining
13at the time,end delete
14cost of genetically handicappedbegin delete person’send deletebegin insert
personsend insertbegin insert’end insert services.
Section 125190 of the Health and Safety Code is
16amended to read:
Notwithstanding any otherbegin delete provision ofend delete law, the
18department is considered to be the purchaser, but not the dispenser
19or distributor, of blood factor products under the Genetically
20Handicappedbegin delete Person’send deletebegin insert Personsend insert Program. The department may
21receive manufacturers’ discounts, rebates, or refunds based on the
22quantities purchased under the Genetically Handicappedbegin delete Person’send delete
23begin insert Personsend insert
Program. The discounts, rebates, or refunds received
24pursuant to this section shall be separate from any agreements for
25discounts, rebates, or refunds negotiated pursuant to Section
2614105.3 of the Welfare and Institutions Code or any other program.
Section 125191 of the Health and Safety Code is
28amended to read:
(a) The department may enter into contracts with one
30or more manufacturers on a negotiated or bid basis as the purchaser,
31but not the dispenser or distributor, of factor replacement therapies
32under the Genetically Handicappedbegin delete Person’send deletebegin insert Personsend insert Program for
33the purpose of enabling the department to obtain the full range of
34available therapies and services required for clients with
35hematological disorders at the most favorable price and to enable
36the department, notwithstanding any otherbegin delete provision ofend delete state law,
37to obtain
discounts, rebates, or refunds from the manufacturers
38based upon the large quantities purchased under the program.
39begin delete Nothing in thisend deletebegin insert Thisend insert subdivisionbegin delete shallend deletebegin insert does notend insert interfere with the
40usual and customary distribution practices of factor replacement
P521 1therapies. In order to achieve maximum cost savings, the
2Legislature hereby determines that an expedited contract process
3under this section is necessary. Therefore, a contract under this
4subdivision may be entered into on a negotiated basis andbegin delete shall beend delete
5begin insert
isend insert exempt from Chapter 2 (commencing with Section 10290) of
6Part 2 of Division 2 of the Public Contract Code and Chapter 6
7(commencing with Section 14825) of Part 5.5 of Division 3begin insert of
8Title 2end insert of the Government Code. Contracts entered pursuant to this
9subdivision shall be confidential and shall be exempt from
10disclosure under the California Public Records Act (Chapter 3.5
11(commencing with Section 6250) of Division 7 of Title 1 of the
12Government Code).
13(b) (1) Factor replacement therapy manufacturers shall calculate
14and pay interest on late or unpaid rebates. The interestbegin delete shallend deletebegin insert doesend insert
15 not apply
to any prior period adjustments of unit rebate amounts
16or department utilization adjustments. Manufacturers shall calculate
17and pay interest on late or unpaid rebates for quarters that begin
18on or after the effective date of the act that added this subdivision.
19(2) Following the final resolution of any dispute regarding the
20amount of a rebate, any underpayment by a manufacturer shall be
21paid with interest calculated pursuant to paragraph (4), and any
22overpayment, together with interest at the rate calculated pursuant
23to paragraph (4), shall be credited by the department against future
24rebates due.
25(3) Interest pursuant to paragraphs (1) and (2) shall begin
26accruing 38 calendar days from the date of mailing the invoice,
27including supporting utilization data sent to the manufacturer.
28Interest shall continue to accrue until the date of mailing of the
29manufacturer’s payment.
30(4) Interest rates and calculations pursuant to paragraphs (1)
31and (2) shall be identical to interest rates and calculations set forth
32in the federal Centers for Medicare and Medicaid Services’
33Medicaid Drug Rebate Program Releases or regulations.
34(c) If the department has not received a rebate payment,
35including interest, within 180 days of the date of mailing of the
36invoice, including supporting utilization data, a factor replacement
37therapy manufacturer’s contract with the department shall be
38deemed to be in default and the contract may be terminated in
39accordance with the terms of the contract. This subdivision does
P522 1not limit the department’s right to otherwise terminate a contract
2in accordance with the terms of that contract.
3(d) The department may enter into contracts on a bid or
4negotiated basis with
manufacturers, distributors, dispensers, or
5suppliers of pharmaceuticals, appliances, durable medical
6equipment, medical supplies, and other product-type health care
7services and laboratories for the purpose of obtaining the most
8favorable prices to the state and to assure adequate access and
9quality of the product or service. In order to achieve maximum
10cost savings, the Legislature hereby determines that an expedited
11contract process under this subdivision is necessary. Therefore,
12contracts under this subdivision may be entered into on a negotiated
13basis and shall be exempt from Chapter 2 (commencing with
14Section 10290) of Part 2 of Division 2 of the Public Contract Code
15and Chapter 6 (commencing with Section 14825) of Part 5.5 of
16Division 3begin insert
of Title 2end insert of the Government Code.
17(e) The department may contract with one or more
18manufacturers of each multisource prescribed product or supplier
19of outpatient clinical laboratory services on a bid or negotiated
20basis. Contracts for outpatient clinical laboratory services shall
21require that the contractor be a clinical laboratory licensed or
22certified by the State of California or certified under Section 263a
23of Title 42 of the United States Code.begin delete Nothing in thisend deletebegin insert Thisend insert
24 subdivision shallbegin insert notend insert be construed as prohibiting the department
25from contracting with less than all manufacturers or clinical
26laboratories,
including just one manufacturer or clinical laboratory,
27on a bid or negotiated basis.
The heading of Part 8 (commencing with Section
29125700) of Division 106 of the Health and Safety Code is amended
30to read:
31
Chapter 4 (commencing with Section 128200) of
35Part 3 of Division 107 of the Health and Safety Code, as added by
36Section 9 of Chapter 415 of the Statutes of 1995, is repealed.
The heading of Article 4 (commencing with Section
38128454) of Chapter 5 of Part 3 of Division 107 of the Health and
39Safety Code, as added by Section 5 of Chapter 437 of the Statutes
40of 2003, is amended and renumbered to read:
Section 130060 of the Health and Safety Code is
5amended to read:
(a) (1) After January 1, 2008, any general acute care
7hospital building that is determined to be a potential risk of collapse
8or pose significant loss of life shall only be used for nonacute care
9hospital purposes, unless an extension of this deadline has been
10granted and either of the following occurs before the end of the
11extension:
12(A) A replacement building has been constructed and a
13certificate of occupancy has been granted by the office for the
14replacement building.
15(B) A retrofit has been performed on the building and a
16construction final has been obtained by the office.
17(2) An extension of the deadline may
be granted by the office
18upon a demonstration by the owner that compliance will result in
19a loss of health care capacity that may not be provided by other
20general acute care hospitals within a reasonable proximity. In its
21request for an extension of the deadline, a hospital shall state why
22the hospital is unable to comply with the January 1, 2008, deadline
23requirement.
24(3) Prior to granting an extension of the January 1, 2008,
25deadline pursuant to this section, the office shall do all of the
26following:
27(A) Provide public notice of a hospital’s request for an extension
28of the deadline. The notice, at a minimum, shall be posted on the
29office’s Internet Web site, and shall include the facility’s name
30and identification number, the status of the request, and the
31beginning and ending dates of the comment period, and shall advise
32the public of the opportunity to submit public comments
pursuant
33to subparagraph (C). The office shall also provide notice of all
34requests for the deadline extension directly to interested parties
35upon request of the interested parties.
36(B) Provide copies of extension requests to interested parties
37within 10 working days to allow interested parties to review and
38provide comment within the 45-day comment period. The copies
39shall include those records that are available to the public pursuant
40to the California Public Records Act (Chapter 3.5 (commencing
P524 1with Section 6250) of Division 7 of Title 1 of the Government
2Code).
3(C) Allow the public to submit written comments on the
4extension proposal for a period of not less than 45 days from the
5date of the public notice.
6(b) (1) It is the intent of the Legislature, in enacting this
7subdivision, to
facilitate the process of having more hospital
8buildings in substantial compliance with this chapter and to take
9nonconforming general acute care hospital inpatient buildings out
10of service more quickly.
11(2) The functional contiguous grouping of hospital buildings of
12a general acute care hospital, each of which provides, as the
13primary source, one or more of the hospital’s eight basic services
14as specified in subdivision (a) of Section 1250, may receive a
15five-year extension of the January 1, 2008, deadline specified in
16subdivision (a) of this section pursuant to this subdivision for both
17structural and nonstructural requirements. A functional contiguous
18grouping refers to buildings containing one or more basic hospital
19services that are either attached or connected in a way that is
20acceptable to the State Department of Health Care Services. These
21buildings may be either on the existing site or a new site.
22(3) To receive the five-year extension, a single building
23containing all of the basic services or at least one building within
24the contiguous grouping of hospital buildings shall have obtained
25a building permit prior to 1973 and this building shall be evaluated
26and classified as a nonconforming, Structural Performance
27Category-1 (SPC-1) building. The classification shall be submitted
28to and accepted by the Office of Statewide Health Planning and
29Development. The identified hospital buildingbegin delete shall beend deletebegin insert isend insert exempt
30from the requirement in subdivision (a) until January 1, 2013, if
31the hospital agrees that the basic service or services that were
32provided in that building shall be provided, on or before January
331, 2013, as follows:
34(A) Moved into an existing conforming Structural Performance
35Category-3 (SPC-3), Structural Performance Category-4 (SPC-4),
36or Structural Performance Category-5 (SPC-5) and Non-Structural
37Performance Category-4 (NPC-4) or Non-Structural Performance
38Category-5 (NPC-5) building.
39(B) Relocated to a newly built compliant SPC-5 and NPC-4 or
40NPC-5 building.
P525 1(C) Continued in the building if the building is retrofitted to a
2SPC-5 and NPC-4 or NPC-5 building.
3(4) A five-year extension is also provided to a post-1973
4building if the hospital owner informs the Office of Statewide
5Health Planning and Development that the building is classified
6as SPC-1, SPC-3, or SPC-4 and will be closed to general acute
7care inpatient service use by January 1, 2013. The basic
services
8in the building shall be relocated into a SPC-5 and NPC-4 or NPC-5
9building by January 1, 2013.
10(5) SPC-1 buildings, other than the building identified in
11paragraph (3) or (4), in the contiguous grouping of hospital
12buildingsbegin delete shallend deletebegin insert isend insert alsobegin delete beend delete exempt from the requirement in
13subdivision (a) until January 1, 2013. However, on or before
14January 1, 2013, at a minimum, each of these buildings shall be
15retrofitted to a SPC-2 and NPC-3 building, or no longer be used
16for general acute care hospital inpatient services.
17(c) On or before March 1, 2001, the office shall establish a
18schedule of interim work
progress deadlines that hospitals shall
19be required to meet to be eligible for the extension specified in
20subdivision (b). To receive this extension, the hospital building or
21buildings shall meet the year 2002 nonstructural requirements.
22(d) A hospital building that is eligible for an extension pursuant
23to this section shall meet the January 1, 2030, nonstructural and
24structural deadline requirements if the building is to be used for
25general acute care inpatient services after January 1, 2030.
26(e) Upon compliance with subdivision (b), the hospital shall be
27issued a written notice of compliance by the office. The office
28shall send a written notice of violation to hospital owners that fail
29to comply with this section. The office shall make copies of these
30notices available on its Internet Web site.
31(f) (1) A hospital that has received an extension of the January
321, 2008, deadline pursuant to subdivision (a) or (b) may request
33an additional extension of up to two years for a hospital building
34that it owns or operates and that meets the criteria specified in
35paragraph (2), (3), or (5).
36(2) The office may grant the additional extension if the hospital
37building subject to the extension meets all of the following criteria:
38(A) The hospital building is under construction at the time of
39the request for extension under this subdivision and the purpose
40of the construction is to meet the requirements of subdivision (a)
P526 1to allow the use of the building as a general acute care hospital
2building after the extension deadline granted by the office pursuant
3to subdivision (a) or (b).
4(B) The hospital building plans
were submitted to the office
5and were deemed ready for review by the office at least four years
6prior to the applicable deadline for the building. The hospital shall
7indicate, upon submission of its plans, the SPC-1 building or
8buildings that will be retrofitted or replaced to meet the
9requirements of this section as a result of the project.
10(C) The hospital received a building permit for the construction
11described in subparagraph (A) at least two years prior to the
12applicable deadline for the building.
13(D) The hospital submitted a construction timeline at least two
14years prior to the applicable deadline for the building demonstrating
15the hospital’s intent to meet the applicable deadline. The timeline
16shall include all of the following:
17(i) The projected construction start date.
18(ii) The projected construction completion date.
19(iii) Identification of the contractor.
20(E) The hospital is making reasonable progress toward meeting
21the timeline set forth in subparagraph (D), but factors beyond the
22hospital’s control make it impossible for the hospital to meet the
23deadline.
24(3) The office may grant the additional extension if the hospital
25building subject to the extension meets all of the following criteria:
26(A) The hospital building is owned by a health care district that
27has, as owner, received the extension of the January 1, 2008,
28deadline, butbegin delete whereend delete the hospital is operated by an
unaffiliated
29third-party lessee pursuant to a facility lease that extends at least
30through December 31, 2009. The district shall file a declaration
31with the office with a request for an extension stating that, as of
32the date of the filing, the district has lacked, and continues to lack,
33unrestricted access to the subject hospital building for seismic
34planning purposes during the term of the lease, and that the district
35is under contract with the county to maintain hospital services
36when the hospital comes under district control. The office shall
37not grant the extension if an unaffiliated third-party lessee will
38operate the hospital beyond December 31, 2010.
39(B) The hospital building plans were submitted to the office
40and were deemed ready for review by the office at least four years
P527 1prior to the applicable deadline for the building. The hospital shall
2indicate, upon submission of its plans, the SPC-1 building or
3buildings that will be
retrofitted or replaced to meet the
4requirements of this section as a result of the project.
5(C) The hospital received a building permit for the construction
6described in subparagraph (B) by December 31, 2011.
7(D) The hospital submitted, by December 31, 2011, a
8construction timeline for the building demonstrating the hospital’s
9intent and ability to meet the deadline of December 31, 2014. The
10timeline shall include all of the following:
11(i) The projected construction start date.
12(ii) The projected construction completion date.
13(iii) Identification of the contractor.
14(E) The hospital building is under construction at the time
of
15the request for the extension, the purpose of the construction is to
16meet the requirements of subdivision (a) to allow the use of the
17building as a general acute care hospital building after the extension
18deadline granted by the office pursuant to subdivision (a) or (b),
19and the hospital is making reasonable progress toward meeting
20the timeline set forth in subparagraph (D).
21(F) The hospital granted an extension pursuant to this paragraph
22shall submit an additional status report to the office, equivalent to
23that required by subdivision (c) of Section 130061, no later than
24June 30, 2013.
25(4) An extension granted pursuant to paragraph (3) begin deleteshall beend deletebegin insert isend insert
26 applicable only to the health care
district applicant and its affiliated
27hospital while the hospital is operated by the district or an entity
28under the control of the district.
29(5) The office may grant the additional extension if the hospital
30building subject to the extension meets all of the following criteria:
31(A) The hospital owner submitted to the office, prior to June
3230, 2009, a request for review using current computer modeling
33utilized by the office and based upon software developed by the
34Federal Emergency Management Agency (FEMA), referred to as
35Hazards US, and the building was deemed SPC-1 after that review.
36(B) The hospital building plans for the building are submitted
37to the office and deemed ready for review by the office prior to
38July 1, 2010. The hospital shall indicate, upon submission of its
39plans, the SPC-1 building or buildings
that shall be retrofitted or
P528 1replaced to meet the requirements of this section as a result of the
2project.
3(C) The hospital receives a building permit from the office for
4the construction described in subparagraph (B) prior to January 1,
52012.
6(D) The hospital submits, prior to January 1, 2012, a
7construction timeline for the building demonstrating the hospital’s
8intent and ability to meet the applicable deadline. The timeline
9shall include all of the following:
10(i) The projected construction start date.
11(ii) The projected construction completion date.
12(iii) Identification of the contractor.
13(E) The hospital building is under
construction at the time of
14the request for the extension, the purpose of the construction is to
15meet the requirements of subdivision (a) to allow the use of the
16building as a general acute care hospital building after the extension
17deadline granted by the office pursuant to subdivision (a) or (b),
18and the hospital is making reasonable progress toward meeting
19the timeline set forth in subparagraph (D).
20(F) The hospital owner completes construction such that the
21hospital meets all criteria to enable the office to issue a certificate
22of occupancy by the applicable deadline for the building.
23(6) A hospital located in the County of Sacramento, San Mateo,
24or Santa Barbara or the City of San Jose that has received an
25additional extension pursuant to paragraph (2) or (5) may request
26an additional extension until September 1, 2015, to obtain either
27a certificate of occupancy from the
office for a replacement
28building, or a construction final from the office for a building on
29which a retrofit has been performed.
30(7) A hospital denied an extension pursuant to this subdivision
31may appeal the denial to the Hospital Building Safety Board.
32(8) The office may revoke an extension granted pursuant to this
33subdivision for any hospital building where the work of
34construction is abandoned or suspended for a period of at least one
35year, unless the hospital demonstrates in a public document that
36the abandonment or suspension was caused by factors beyond its
37control.
38(g) (1) Notwithstanding subdivisions (a), (b), (c), and (f), and
39Sections 130061.5 and 130064, a hospital that has received an
40extension of the January 1, 2008, deadline pursuant to subdivision
P529 1(a) or (b) also may request an
additional extension of up to seven
2years for a hospital building that it owns or operates. The office
3may grant the extension subject to the hospital meeting the
4milestones set forth in paragraph (2).
5(2) The hospital building subject to the extension shall meet all
6of the following milestones, unless the hospital building is
7reclassified as SPC-2 or higher as a result of its Hazards US score:
8(A) The hospital owner submits to the office, no later than
9September 30, 2012, a letter of intent stating whether it intends to
10rebuild, replace, or retrofit the building, or remove all general acute
11care beds and services from the building, and the amount of time
12necessary to complete the construction.
13(B) The hospital owner submits to the office, no later than
14September 30, 2012, a schedule detailing why the requested
15
extension is necessary, and specifically how the hospital intends
16to meet the requested deadline.
17(C) The hospital owner submits to the office, no later than
18September 30, 2012, an application ready for review seeking
19structural reassessment of each of its SPC-1 buildings using current
20computer modeling based upon software developed by FEMA,
21referred to as Hazards US.
22(D) The hospital owner submits to the office, no later than
23January 1, 2015, plans ready for review consistent with the letter
24of intent submitted pursuant to subparagraph (A) and the schedule
25submitted pursuant to subparagraph (B).
26(E) The hospital owner submits a financial report to the office
27at the time the plans are submitted pursuant to subparagraph (D).
28The report shall demonstrate the hospital owner’s financial capacity
29to implement the
construction plans submitted pursuant to
30subparagraph (D).
31(F) The hospital owner receives a building permit consistent
32with the letter of intent submitted pursuant to subparagraph (A)
33and the schedule submitted pursuant to subparagraph (B), no later
34than July 1, 2018.
35(3) To evaluate public safety and determine whether to grant
36an extension of the deadline, the office shall consider the structural
37integrity of the hospital’s SPC-1 buildings based on its Hazards
38US scores, community access to essential hospital services, and
39the hospital owner’s financial capacity to meet the deadline as
40determined by either a bond rating of BBB or below or the financial
P530 1report on the hospital owner’s financial capacity submitted pursuant
2to subparagraph (E) of paragraph (2). The criteria contained in this
3paragraph shall be considered by the office in its determination of
4the length of an
extension or whether an extension should be
5granted.
6(4) The extension or subsequent adjustments granted pursuant
7to this subdivision may not exceed the amount of time that is
8reasonably necessary to complete the construction specified in
9paragraph (2).
10(5) If the circumstances underlying the request for extension
11submitted to the office pursuant to paragraph (2) change, the
12hospital owner shall notify the office as soon as practicable, but
13in no event later than six months after the hospital owner
14discovered the change of circumstances. The office may adjust the
15length of the extension granted pursuant to paragraphs (2) and (3)
16as necessary, but in no event longer than the period specified in
17paragraph (1).
18(6) A hospital denied an extension pursuant to this subdivision
19may appeal the denial to the Hospital Building
Safety Board.
20(7) The office may revoke an extension granted pursuant to this
21subdivision for any hospital building when it is determined that
22any information submitted pursuant to this section was falsified,
23or if the hospital failed to meet a milestone set forth in paragraph
24(2), orbegin delete whereend deletebegin insert whenend insert the work of construction is abandoned or
25suspended for a period of at least six months, unless the hospital
26demonstrates in a publicly available document that the
27abandonment or suspension was caused by factors beyond its
28control.
29(8) Regulatory submissions made by the office to the California
30Building Standards Commission to implement this section shall
31be deemed to be emergency regulations and shall
be adopted as
32emergency regulations.
33(9) The hospital owner that applies for an extension pursuant
34to this subdivision shall pay the office an additional fee, to be
35determined by the office, sufficient to cover the additional
36reasonable costs incurred by the office for maintaining the
37additional reporting requirements established under this section,
38including, but not limited to, the costs of reviewing and verifying
39the extension documentation submitted pursuant to this subdivision.
40This additional fee shall not include any cost for review of the
P531 1plans or other duties related to receiving a building or occupancy
2permit.
3(10) This subdivision shall become operative on the date that
4the State Department of Health Care Services receives all necessary
5federal approvals for a 2011-12 fiscal year hospital quality
6assurance fee program that includes three hundred twenty million
7dollars
($320,000,000) in fee revenue to pay for health care
8coverage for children, which is made available as a result of the
9legislative enactment of a 2011-12 fiscal year hospital quality
10assurance fee program.
Section 136000 of the Health and Safety Code is
12amended to read:
(a) (1) The Office of Patient Advocate is hereby
14established within the California Health and Human Services
15Agency, to provide assistance to, and advocate on behalf of, health
16care consumers. The goal of the office shall be to coordinate
17amongst, provide assistance to, and collect data from, all of the
18state agency consumer assistance or patient assistance programs
19and call centers, to better enable health care consumers to access
20the health care services to which they are eligible under the law,
21including, but not limited to, commercial and Exchange coverage,
22Medi-Cal, Medicare, and federal veterans health benefits.
23Notwithstanding any provision of this division, each regulator and
24health coverage program shall retain its respective authority,
25including its authority to resolve complaints, grievances, and
26
appeals.
27(2) The office shall be headed by a patient advocate appointed
28by the Governor. The patient advocate shall serve at the pleasure
29of the Governor.
30(b) (1) The duties of the office shall include, but not be limited
31to, all of the following:
32(A) Coordinate and work in consultation with state agency and
33local, nongovernment health care consumer or patient assistance
34programs and health care ombudsperson programs.
35(B) Produce a baseline review and annual report to be made
36publically available on the office’s Internet Web site by July 1,
372015, and annually thereafter, of health care consumer or patient
38assistance help centers, call centers, ombudsperson, or other
39assistance centers operated by the Department of Managed Health
40
Care, thebegin insert Stateend insert Department of Health Care Services, the Department
P532 1of Insurance, and the Exchange, that includes, at a minimum, all
2of the following:
3(i) The types of calls received and the number of calls.
4(ii) The call center’s role with regard to each type of call,
5question, complaint, or grievance.
6(iii) The call center’s protocol for responding to requests for
7assistance from health care consumers, including any performance
8standards.
9(iv) The protocol for referring or transferring calls outside the
10jurisdiction of the call center.
11(v) The call center’s methodology of tracking
calls, complaints,
12grievances, or inquiries.
13(C) (i) Collect, track, and analyze data on problems and
14complaints by, and questions from, consumers about health care
15coverage for the purpose of providing public information about
16problems faced and information needed by consumers in obtaining
17coverage and care. The data collected shall include demographic
18data, source of coverage, regulator, type of problem or issue or
19comparable types of problems or issues, and resolution of
20complaints, including timeliness of resolution. Notwithstanding
21Section 10231.5 of the Government Code, the office shall submit
22a report by July 1, 2015, and annually thereafter to the Legislature.
23The report shall be submitted in compliance with Section 9795 of
24the Government Code. The format may be modified annually as
25needed based upon comments from the Legislature and
26stakeholders.
27(ii) For the purpose of publically reporting information as
28required in subparagraph (B) and this subparagraph about the
29problems faced by consumers in obtaining care and coverage, the
30office shall analyze data on consumer complaints and grievances
31resolved by the agencies listed in subdivision (c), including
32demographic data, source of coverage, insurer or plan, resolution
33of complaints, and other information intended to improve health
34care and coverage for consumers.
35(D) Make recommendations, in consultation with stakeholders,
36for improvement or standardization of the health consumer
37assistance functions, referral process, and data collection and
38analysis.
39(E) Develop model protocols, in consultation with consumer
40assistance call centers and stakeholders, that may be used by call
P533 1centers for responding to and referring calls that are outside the
2jurisdiction of the
call center, program, or regulator.
3(F) Compile an annual publication, to be made publically
4available on the office’s Internet Web site, of a quality of care
5report card, including, but not limited, to health care service plans,
6preferred provider organizations, and medical groups.
7(G) Make referrals to the appropriate state agency, whether
8further or additional actions may be appropriate, to protect the
9interests of consumers or patients.
10(H) Assist in the development of educational and informational
11guides for consumers and patients describing their rights and
12responsibilities and informing them on effective ways to exercise
13their rights to secure and access health care coverage, produced
14by the Department of Managed Health Care, thebegin insert
Stateend insert Department
15of Health Care Services, the Exchange, and thebegin delete Californiaend delete
16 Department of Insurance, and to endeavor to make those materials
17easy to read and understand and available in all threshold
18languages, using an appropriate literacy level and in a culturally
19competent manner.
20(I) Coordinate with other state and federal agencies engaged in
21outreach and education regarding the implementation of federal
22health care reform, and to assist in these duties, may provide or
23assist in the provision of grants to community-based consumer
24assistance organizations for these purposes.
25(J) If appropriate, refer consumers to the appropriate regulator
26of their health coverage programs for filing complaints or
27grievances.
28(2) The office shall employ necessary staff. The office may
29employ or contract with experts when necessary to carry out the
30functions of the office. The patient advocate shall make an annual
31budget request for the office that shall be identified in the annual
32Budget Act.
33(3) The patient advocate shall annually issue a public report on
34the activities of the office, and shall appear before the appropriate
35policy and fiscal committees of the Senate and Assembly, if
36requested, to report and make recommendations on the activities
37of the office.
38(4) The office shall adopt standards for the organizations with
39which it contracts pursuant to this section to ensure compliance
40with the privacy and confidentiality laws of this state, including,
P534 1but not limited to, the Information Practices Act of 1977 (Chapter
21 (commencing with
Section 1798) of Title 1.8 of Part 4 of
3Division 3 of the Civil Code). The office shall conduct privacy
4trainings as necessary, and regularly verify that the organizations
5have measures in place to ensure compliance with this provision.
6(c) The Department of Managed Health Care, thebegin insert Stateend insert
7 Department of Health Care Services, the Department of Insurance,
8the Exchange, and any other public health coverage programs shall
9provide to the office data concerning call centers to meet the
10reporting requirements in subparagraph (B) of paragraph (1) of
11subdivision (b) and consumer complaints and grievances to meet
12the reporting requirements in clause (i) of subparagraph (C) of
13paragraph (1) of subdivision (b).
14(d) For purposes of this section, the following definitions apply:
15(1) “Consumer” or “individual” includes the individual or his
16or her parent, guardian, conservator, or authorized representative.
17(2) “Exchange” means the California Health Benefit Exchange
18established pursuant to Title 22 (commencing with Section 100500)
19of the Government Code.
20(3) “Health care” includes services provided by any of the health
21care coverage programs.
22(4) “Health care service plan” has the same meaning as that set
23forth in subdivision (f) of Section 1345. Health care service plan
24includes “specialized health care service plans,” including
25behavioral health plans.
26(5) “Health coverage program” includes the Medi-Cal program,
27Healthy Families Program, tax subsidies and premium
credits
28under the Exchange, the Basic Health Program, if enacted, county
29health coverage programs, and the Access for Infants and Mothers
30Program.
31(6) “Health insurance” has the same meaning as set forth in
32Section 106 of the Insurance Code.
33(7) “Health insurer” means an insurer that issues policies of
34health insurance.
35(8) “Office” means the Office of Patient Advocate.
36(9) “Threshold languages” has the same meaning as for
37Medi-Cal managed care.
Section 926.1 of the Insurance Code is amended to
39read:
As used in this article, the following terms shall have
2the following meanings:
3(a) “Area median income” (AMI) means either of the following:
4(1) The median family income for the Metropolitan Statistical
5Area (MSA), if a person or geography is located in an MSA, or
6for the metropolitan division, if a person or geography is located
7in an MSA that has been subdivided into metropolitan divisions.
8(2) The statewide nonmetropolitan median family income, if a
9person or geography is located outside an MSA.
10(b) “Community development investment” means an investment
11where all or a portion of the
investment has as its primary purpose
12community development for, or that directly benefits, California
13low- or moderate-income individuals, families, or communities.
14“Community development investment” includes, but is not limited
15to, investments in California in the following:
16(1) Affordable housing, including multifamily rental and
17ownership housing, for low- or moderate-income individuals or
18families.
19(2) Community facilities or community services providers
20(including providers of education, health, or social services)
21directly benefiting low- or moderate-income individuals, families,
22or communities.
23(3) Economic development that demonstrates benefits, including,
24but not limited to, job creation, retention, or improvement, or
25provision of needed capital, to low- orbegin delete moderate-income,end delete
26begin insert
moderate-incomeend insert individuals, families, or communities, including
27urban or rural communities, or businesses or nonprofit community
28service organizations that serve these communities.
29(4) Activities that revitalize or stabilize low- or moderate-income
30communities.
31(5) Investments in or through California Organized Investment
32Network (COIN)-certified community development financial
33institutions (CDFIs) and investments made pursuant to the
34requirements of federal, state, or local community development
35investment programs or community development investment tax
36incentive programs, including green investments, if these
37investments directly benefit low- or moderate-income individuals,
38families, and communities and are consistent with this article.
39(6) Community development infrastructure investments.
P536 1(7) Investments in a commercial property or properties located
2in low- or moderate-income geographical areas and are consistent
3with this article.
4(c) “Community development infrastructure” means California
5public debt (including all debt issued by the State of California or
6a California state or local government agency) where all or a
7portion of the debt has as its primary purpose community
8development for, or that directly benefits, low- or moderate-income
9communities and is consistent with subdivision (b).
10(d) “Geography” means a census tract delineated by the United
11States Bureau of the Census in the most recent decennial census.
12(e) “Green investments” means investments that emphasize
13renewable energy projects, economic
development, and affordable
14housing focused on infill sites so as to reduce the degree of
15automobile dependency and promote the use and reuse of existing
16urbanized lands supplied with infrastructure for the purpose of
17accommodating new growth and jobs. “Green investments” also
18means investments that can help communities grow through new
19capital investment in the maintenance and rehabilitation of existing
20infrastructure so that the reuse and reinvention of city centers and
21existing transportation corridors and community space, including
22projects offering energy efficiency improvements and renewable
23energy generation, including, but not limited to, solar and wind
24power, mixed-use development, affordable housing opportunities,
25multimodal transportation systems, and transit-oriented
26development, can advance economic development, jobs, and
27housing.
28(f) “High-impact investments” means investments that are
29innovative, responsive to community needs,
not routinely provided
30by insurers, or have a high degree of positive impact on the
31economic welfare of low- or moderate-income individuals,
32families, or communities in urban or rural areas of California.
33(g) “Insurer” means an admitted insurer as defined in Section
3424, including the State Compensation Insurance Fund, or a
35domestic fraternal benefit society as defined in Section 10990.
36(h) “Investment” means a lawful equity or debt investment, or
37loan, or deposit obligation, or other investment or investment
38transaction allowed by the Insurance Code.
P537 1(i) “Low-income” means an individual income that is less than
250 percent of the AMI, or a median family income that is less than
350 percent of the AMI in the case of a geographical area.
4(j) “MSA” means a
metropolitan statistical area as defined by
5the Director of the Office of Management and Budget.
6(k) “Moderate-income” means an individual income that is at
7least 50 percent but less than 80 percent of the AMI, or a median
8family income that is at least 50 percent but less than 80 percent
9of the AMI in the case of a geographical area.
10(l) “Nonmetropolitan area” means any area that is not located
11in an MSA.
Section 926.2 of the Insurance Code is amended to
13read:
(a) (1) Each admitted insurer with annual premiums
15written in California equal to or in excess of one hundred million
16dollars ($100,000,000) for any reporting year shall provide
17information to the commissioner on all of its community
18development investments, community development infrastructure
19investments, and green investments in California. This information
20shall be reported by July 1, 2016, on investments made or held
21during the calendar years 2013, 2014, and 2015 and list, if
22applicable, investments that are high-impact, green, or rural. The
23information reported by insurers may include investments both
24held and originated, the percentage of any investment that qualifies,
25and why an investment qualifies. This information shall be
26provided as part of the required filing pursuant to Section 900 or
2711131,
or through a data call, or by other means as determined by
28the commissioner. The California Organized Investment Network
29(COIN) shall provide insurers with information on why
30investments, if any, were found not to be qualified by the
31commissioner.
32(2) begin deleteNothing in this end deletebegin insertThis end insertsubdivisionbegin delete shallend deletebegin insert does notend insert preclude an
33insurer that is a member of an insurance holding company system,
34as defined in Article 4.7 (commencing with Section 1215) of
35Chapter 2, from complying with paragraph (1) through a single
36filing on behalf of the entire group of affiliated companies,
37provided that
the data so filed accurately reflects the investments
38made by each of the affiliates, and accurately attributes, by National
39Association of Insurance Commissioners (NAIC) number or other
P538 1identifier required by the commissioner, which of the investments
2were made by each affiliated company.
3(3) This subdivisionbegin delete shallend deletebegin insert doesend insert not preclude an insurer from
4satisfying the requirements of paragraph (1) through a filing made
5by a community development financial institution, provided all of
6the following conditions are met:
7(A) The insurer has no less than a 10 percent ownership interest
8in a COIN-certified community development financial institution.
9(B) The insurer makes community development investments
10and community development infrastructure investments in and
11through the community development financial institution.
12(C) The community development financial institution accurately
13files the information required by paragraph (1) with the
14commissioner on behalf of the insurer and accurately attributes,
15by NAIC number or other identifier required by the commissioner,
16which investments, including the dollar amounts of the investments,
17were made by each insurer on whose behalf the community
18development financial institution is reporting.
19(b) The commissioner shall, by December 31, 2016, provide all
20of the following:
21(1) Information on the department’s Internet Web site on the
22aggregate insurer community development investments and
23community development
infrastructure investments. Insurers that
24make high-impact investments that are defined as innovative,
25responsive to community needs, not routinely provided by insurers,
26or have a high degree of positive impact on the economic welfare
27of low- or moderate-income individuals, families, or communities
28in urban or rural areas of California shall be identified.
29(2) Information on the department’s Internet Web site on the
30actions taken by COIN to analyze the data by insurers for the
31purpose of creating and identifying potential investment
32opportunities, including the development of investment opportunity
33bulletins. This information shall state the efforts made by COIN
34to market and expand outreach to communities.
35(c) The department shall also, by December 31, 2016, provide
36information on the department’s Internet Web site regarding the
37aggregate amount of California public debt
(including all debt
38issued by the State of California or a California state or local
39government agency) purchased by insurers as reported to the
P539 1department in their NAIC annual statement filing pursuant to
2Section 900 or 11131.
3(d) The department shall also, by December 31, 2016, provide
4on its Internet Web site the aggregate amount of identified
5California investments, as reported to the NAIC in the annual
6statement filed pursuant to Section 900 orbegin delete Sectionend delete
11131.
7(e) The department shall also by December 31, 2016, provide
8information on its Internet Web site regarding the aggregate amount
9of identified California insurer investments in green investments.
10(f) This article shall remain in effect only until January 1, 2020,
11and as of that date is repealed, unless a later enacted statute, that
12is enacted before January 1, 2020, deletes or extends that date.
Section 1215.8 of the Insurance Code is amended
14to read:
(a) All information, documents, and copies thereof
16obtained by or disclosed to the commissioner or any other person
17in the course of an examination or investigation made pursuant to
18Sections 1215.4 and 1215.5, and all information reported pursuant
19to Section 1215.4, shall be kept confidential, is not subject to
20disclosure by the commissioner pursuant to the California Public
21Records Act (Chapter 3.5 (commencing with Section 6250) of
22Division 7 of Title 1 of the Government Code), is not subject to
23subpoena, and is not subject to discovery from the commissioner
24or admissible into evidence in any private civil action if obtained
25from the commissioner in any manner. This information shall not
26be made public by the commissioner or any other person except
27to insurance departments of other states without the prior written
28consent of
the insurance company to which it pertains, unless the
29commissioner, after giving the insurer and its affiliates who would
30be affected thereby notice and opportunity to be heard, determines
31that the interests of policyholders, shareholders, or the public will
32be served by the publication thereof, in which event he or she may
33publish all or any part thereof in a manner as he or she may deem
34appropriate.
35(b) In order to assist in the performance of the commissioner’s
36duties, the commissioner:
37(1) May, upon request, be required to share documents,
38materials, or other information, including the confidential and
39privileged documents, materials, or information subject to
40subdivision (a), with other state, federal, and international
P540 1regulatory agencies, with thebegin delete NAICend deletebegin insert
National Association of
2Insurance Commissioners (NAIC)end insert
and its affiliates and subsidiaries,
3and with state, federal, and international law enforcement
4authorities, including members of any supervisory college
5described in Section 1215.7; provided that the recipient agrees in
6writing to maintain the confidentiality and privileged status of the
7documents, materials, or other information, and has verified in
8writing the legal authority to maintain confidentiality.
9(2) Notwithstanding paragraph (1), may only share confidential
10and privileged documents, materials, or information reported
11pursuant to subdivision (m) of Section 1215.4 with commissioners
12of states having statutes or regulations substantially similar to
13subdivision (a) and who have agreed in writing not to disclose the
14information.
15(3) May receive documents, materials, or information, including
16otherwise confidential and privileged documents, materials, or
17
information, from the NAIC and its affiliates and subsidiaries and
18from regulatory and law enforcement officials of other foreign or
19domestic jurisdictions, and shall maintain as confidential or
20privileged any documents, materials, or information received with
21notice or the understanding that it is confidential or privileged
22under the laws of the jurisdiction that is the source of the
23documents, materials, or information.
24(4) May enter into written agreements with the NAIC governing
25sharing and use of information provided pursuant to this
26subdivision consistent with this subdivision that shall do the
27following:
28(A) Specify procedures and protocols regarding the
29confidentiality and security of information shared with the NAIC
30and its affiliates and subsidiaries pursuant to this subdivision,
31including procedures and protocols for sharing by the NAIC with
32other state, federal, or
international regulators.
33(B) Specify that ownership of information shared with the NAIC
34and its affiliates and subsidiaries pursuant to this subdivision
35remains with the commissioner and the NAIC’s use of the
36information is subject to the direction of the commissioner.
37(C) Require prompt notice to be given to an insurer whose
38confidential information in the possession of the NAIC pursuant
39to this subdivision is subject to a request or subpoena to the NAIC
40for disclosure or production.
P541 1(D) Require the NAIC and its affiliates and subsidiaries to
2consent to intervention by an insurer in any judicial or
3administrative action in which the NAIC and its affiliates and
4subsidiaries may be required to disclose confidential information
5about the insurer shared with the NAIC and its affiliates and
6subsidiaries pursuant to this
subdivision.
7(c) The sharing of information by the commissioner pursuant
8to this subdivision shall not constitute a delegation of regulatory
9authority or rulemaking, and the commissioner is solely responsible
10for the administration, execution, and enforcement of the provisions
11of this article.
12(d) begin deleteNo end deletebegin insertA end insertwaiver of any applicable privilege or claim of
13confidentiality in the documents, materials, or informationbegin delete shallend delete
14begin insert does notend insert occur as a result of disclosure to the commissioner under
15this section or as a
result of sharing as authorized in subdivision
16(c).
17(e) Documents, materials, or other information filed in the
18possession or control of the NAIC pursuant to this subdivision
19begin delete shall beend deletebegin insert areend insert confidential by law and privileged,begin delete shallend deletebegin insert areend insert notbegin delete beend delete
20 subject to subpoena, andbegin delete shallend deletebegin insert areend insert notbegin delete beend delete
subject to discovery or
21admissible in evidence in any private civil action.
Section 10112.26 of the Insurance Code is amended
23to read:
(a) A health insurer that issues, sells, renews, or
25offers a specialized health insurance policy covering dental services
26shall, no later than September 30, 2015, and each year thereafter,
27file a report, which shall be known as the MLR annual report, with
28the department that is organized by market and product type and
29contains the same information required in the 2013 federal Medical
30Loss Ratio (MLR) Annual Reporting Form (CMS-10418).
31(b) The MLR reporting year shall be for the calendar year during
32which dental coverage is provided by the plan. All terms used in
33the MLR annual report shall have the same meaning as used in the
34federal Public Health Service Act (42 U.S.C. Sec. 300gg-18) and
35Part 158 (commencing withbegin insert
Sectionend insert
158.101) of Title 45 of the
36Code of Federal Regulations.
37(c) If the commissioner decides to conduct an examination, as
38described in Section 730, because the commissioner finds it
39necessary to verify the health insurer’s representations in the MLR
40annual report, the department shall provide the health insurer with
P542 1a notification 30 days before the commencement of the
2examination.
3(d) The health insurer shall have 30 days from the date of
4notification to electronically submit to the department all requested
5records, books, and papers specified in subdivision (a) of Section
6733. The commissioner may extend the time for a health insurer
7to comply with this subdivision upon a finding of good cause.
8(e) The department shall make available to the public all of the
9data provided to the department pursuant to
this section.
10(f) This section does not apply to an insurance policy issued,
11sold, renewed, or offered for health care services or coverage
12provided in the Medi-Cal program (Chapter 7 (commencing with
13Section 14000) of Part 3 of Division 9 of the Welfare and
14Institutions Code), the Healthy Families Program (Part 6.2
15(commencing with Section 12693) of Division 2 of the Insurance
16Code), the Access for Infants and Mothers Program (Part 6.3
17(commencing with Section 12695) of Division 2 of the Insurance
18Code), the California Major Risk Medical Insurance Program (Part
196.5 (commencing with Section 12700) of Division 2 of the
20Insurance Code), or the Federal Temporary High Risk Insurance
21Pool (Part 6.6 (commencing with Section 12739.5) of Division 2
22of the Insurance Code), to the extent consistent with the federal
23Patient Protection and Affordable Care Act (Public Law 111-148).
24(g) This
sectionbegin delete shallend deletebegin insert doesend insert not apply to disability insurance for
25covered benefits in the single specialized area of dental-only health
26care that pays benefits on a fixed benefit, cash payment only basis.
27(h) It is the intent of the Legislature that the data reported
28pursuant to this section be considered by the Legislature in adopting
29a medical loss ratio standard for specialized health insurance
30policies that cover dental services that would take effect no later
31than January 1, 2018.
32(i) Until January 1, 2018, the department may issue guidance
33to health insurers of specialized health insurance policies subject
34to this section regarding compliance with this section. This
35guidance shall not be subject
to the Administrative Procedure Act
36(Chapter 3.5 (commencing with Section 11340) of Part 1 of
37Division 3 of Title 2 of the Government Code).begin delete Any guidanceend delete
38begin insert Guidanceend insert issued pursuant to this subdivisionbegin delete shall beend deletebegin insert isend insert effective
39only until the department adopts regulations pursuant to the
40Administrative Procedure Act. The department shall consult with
P543 1the Department of Managed Health Care in issuing guidance
2pursuant to this subdivision.
Section 10112.35 of the Insurance Code is amended
4to read:
(a) An insurer providing individual coverage in the
6Exchange shall cooperate with requests from the Exchange to
7collaborate in the development of, and participate in the
8implementation of, the Medi-Cal program’s premium and
9cost-sharing payments under Sections 14102 and 14148.65 of the
10Welfare and Institutions Code for eligible Exchange insureds.
11(b) An insurer providing individual coverage in the Exchange
12shall not charge, bill, ask, or require an insured receiving benefits
13under Section 14102 orbegin delete Sectionend delete 14148.65 of the Welfare and
14Institutions Code to make any premium or cost-sharing payments
15for any services that are subject to premium or cost-sharing
16payments by the State
Department of Health Care Services under
17Section 14102 orbegin delete Sectionend delete
14148.65 of the Welfare and Institutions
18Code.
19(c) For purposes of this section, “Exchange” means the
20California Health Benefit Exchange established pursuant to Title
2122 (commencing with Section 100500) of the Government Code.
Section 10123.196 of the Insurance Code is amended
23to read:
(a) An individual or group policy of disability
25insurance issued, amended, renewed, or delivered on or after
26January 1, 2000, through December 31, 2015, inclusive, that
27provides coverage for hospital, medical, or surgical expenses, shall
28provide coverage for the following, under the same terms and
29conditions as applicable to all benefits:
30(1) A disability insurance policy that provides coverage for
31outpatient prescription drug benefits shall include coverage for a
32variety of federal Food and Drug Administrationbegin delete (FDA) approvedend delete
33begin insert (FDA)-approvedend insert prescription contraceptive
methods, as designated
34by the insurer. If an insured’s health care provider determines that
35none of the methods designated by the disability insurer is
36medically appropriate for the insured’s medical or personal history,
37the insurer shall, in the alternative, provide coverage for some
38otherbegin delete FDA approvedend deletebegin insert FDA-approvedend insert prescription contraceptive
39method prescribed by the patient’s health care provider.
P544 1(2) Coverage with respect to an insured under this subdivision
2shall be identical for an insured’s covered spouse and covered
3nonspouse dependents.
4(b) (1) A group or individual policy of disability insurance,
5except for a specialized health insurance policy, that is issued,
6
amended, renewed, or delivered on or after January 1, 2016, shall
7provide coverage for all of the following services and contraceptive
8methods for women:
9(A) Except as provided in subparagraphs (B) and (C) of
10paragraph (2), all FDA-approved contraceptive drugs, devices,
11and other products for women, including all FDA-approved
12contraceptive drugs, devices, and products available over the
13counter, as prescribed by the insured’s provider.
14(B) Voluntary sterilization procedures.
15(C) Patient education and counseling on contraception.
16(D) Followup services related to the drugs, devices, products,
17and procedures covered under this subdivision, including, but not
18limited to, management of side effects, counseling for continued
19adherence, and device insertion
and removal.
20(2) (A) Except for a grandfathered health plan, a disability
21insurer subject to this subdivision shall not impose a deductible,
22coinsurance, copayment, or any other cost-sharing requirement on
23the coverage provided pursuant to this subdivision.
24(B) begin deleteWhere end deletebegin insertIf end insertthe FDA has approved one or more therapeutic
25equivalents of a contraceptive drug, device, or product, a disability
26insurer is not required to cover all of those therapeutically
27equivalent versions in accordance with this subdivision, as long
28as at least one is covered without cost sharing in accordance with
29this subdivision.
30(C) If a covered
therapeutic equivalent of a drug, device, or
31product is not available, or is deemed medically inadvisable by
32the insured’s provider, a disability insurer shall provide coverage,
33subject to an insurer’s utilization management procedures, for the
34prescribed contraceptive drug, device, or product without cost
35sharing. Any request by a contracting provider shall be responded
36to by the disability insurer in compliance with Section 10123.191.
37(3) Except as otherwise authorized under this section, an insurer
38shall not impose any restrictions or delays on the coverage required
39under this subdivision.
P545 1(4) Coverage with respect to an insured under this subdivision
2shall be identical for an insured’s covered spouse and covered
3nonspouse dependents.
4(c) begin deleteNothing in this end deletebegin insertThis
end insertsection shallbegin insert notend insert be construed to deny
5or restrict in any way any existing right or benefit provided under
6law or by contract.
7(d) begin deleteNothing in this end deletebegin insertThis end insertsection shallbegin insert notend insert be construed to require
8an individual or group disability insurance policy to cover
9experimental or investigational treatments.
10(e) Notwithstanding any other provision of this section, a
11religious employer may request a disability insurance policy
12without coverage for contraceptive methods
that are contrary to
13the religious employer’s religious tenets. If so requested, a
14disability insurance policy shall be provided without coverage for
15contraceptive methods.
16(1) For purposes of this section, a “religious employer” is an
17entity for which each of the following is true:
18(A) The inculcation of religious values is the purpose of the
19entity.
20(B) The entity primarily employs persons who share the religious
21tenets of the entity.
22(C) The entity serves primarily persons who share the religious
23tenets of the entity.
24(D) The entity is a nonprofit organization pursuant to Section
256033(a)(3)(A)(i) or (iii) of the Internal Revenue Code of 1986, as
26amended.
27(2) Every religious employer that invokes the exemption
28provided under this section shall provide written notice to any
29prospective employee once an offer of employment has been made,
30and prior to that person commencing that employment, listing the
31contraceptive health care services the employer refuses to cover
32for religious reasons.
33(f) begin deleteNothing in this end deletebegin insertThis end insertsection shallbegin insert notend insert be construed to exclude
34coverage for contraceptive supplies as prescribed by a provider,
35acting within his or her scope of practice, for reasons other than
36contraceptive purposes, such as decreasing the risk of
ovarian
37cancer or eliminating symptoms of menopause, or for contraception
38that is necessary to preserve the life or health of an insured.
39(g) This sectionbegin delete shall only applyend deletebegin insert only appliesend insert to disability
40insurance policies or contracts that are defined as health benefit
P546 1plans pursuant to subdivision (a) of Section 10198.6, except that
2for accident only, specified disease, or hospital indemnity coverage,
3coverage for benefits under this sectionbegin delete shall applyend deletebegin insert appliesend insert to the
4extent that the benefits are covered under the general terms and
5conditions that apply to all other
benefits under the policy or
6contract.begin delete Nothing in thisend deletebegin insert Thisend insert section shallbegin insert notend insert be construed as
7imposing a new benefit mandate on accident only, specified
8disease, or hospital indemnity insurance.
9(h) For purposes of this section, the following definitions apply:
10(1) “Grandfathered health plan” has the meaning set forth in
11Section 1251 of PPACA.
12(2) “PPACA” means the federal Patient Protection and
13Affordable Care Act (Public Law 111-148), as amended by the
14federal Health Care and Education Reconciliation Act of 2010
15(Public
Law 111-152), and any rules, regulations, or guidance
16issued thereunder.
17(3) With respect to policies of disability insurance issued,
18amended, or renewed on or after January 1, 2016, “health care
19provider” means an individual who is certified or licensed pursuant
20to Division 2 (commencing with Section 500) of the Business and
21Professions Code, or an initiative act referred to in that division,
22or Division 2.5 (commencing with Section 1797) of the Health
23and Safety Code.
Section 10123.21 of the Insurance Code, as added
25by Section 2 of Chapter 419 of the Statutes of 2005, is amended
26and renumbered to read:
(a) A health insurer shall not deny coverage that is
29otherwise available under the health insurance policy for the costs
30of solid organ or other tissue transplantation services based upon
31the insured or policyholder being infected with the human
32immunodeficiency virus.
33(b) Notwithstanding any other provision of law, in the provision
34of benefits required by this section, a health insurer may utilize
35case management, managed care, or utilization review, subject to
36the terms and conditions of the policy and consistent with sound
37
clinical processes and guidelines.
Section 10192.18 of the Insurance Code is amended
39to read:
(a) Application forms shall include the following
2questions designed to elicit information as to whether, as of the
3date of the application, the applicant currently has Medicare
4supplement, Medicare Advantage, Medi-Cal coverage, or another
5health insurance policy or certificate in force or whether a Medicare
6supplement policy or certificate is intended to replace any other
7disability policy or certificate presently in force. A supplementary
8application or other form to be signed by the applicant and agent
9containing those questions and statements may be used.
10
11(Statements)
12
13(1) You do not need more than one Medicare supplement policy.
14(2) If you purchase this policy, you may want to evaluate your
15existing health coverage and decide if you need multiple coverages.
16(3) You may be eligible for benefits under Medi-Cal and may
17not need a Medicare supplement policy.
18(4) If after purchasing this policy you become eligible for
19Medi-Cal, the benefits and premiums under your Medicare
20supplement policy can be suspended, if requested, during your
21entitlement to benefits under Medi-Cal for 24 months. You must
22request this suspension within 90 days of becoming eligible for
23Medi-Cal. If you are no longer entitled to Medi-Cal, your
24suspended Medicare supplement policy or if that is no longer
25available, a substantially equivalent policy,
will be reinstituted if
26requested within 90 days of losing Medi-Cal eligibility. If the
27Medicare supplement policy provided coverage for outpatient
28prescription drugs and you enrolled in Medicare Part D while your
29policy was suspended, the reinstituted policy will not have
30outpatient prescription drug coverage, but will otherwise be
31substantially equivalent to your coverage before the date of the
32suspension.
33(5) If you are eligible for, and have enrolled in, a Medicare
34supplement policy by reason of disability and you later become
35covered by an employer or union-based group health plan, the
36benefits and premiums under your Medicare supplement policy
37can be suspended, if requested, while you are covered under the
38employer or union-based group health plan. If you suspend your
39Medicare supplement policy under these circumstances and later
40lose your employer or union-based group health plan, your
P548 1suspended Medicare supplement policy or if that is
no longer
2available, a substantially equivalent policy, will be reinstituted if
3requested within 90 days of losing your employer or union-based
4group health plan. If the Medicare supplement policy provided
5coverage for outpatient prescription drugs and you enrolled in
6Medicare Part D while your policy was suspended, the reinstituted
7policy will not have outpatient prescription drug coverage, but will
8otherwise be substantially equivalent to your coverage before the
9date of the suspension.
10(6) Counseling services are available in this state to provide
11advice concerning your purchase of Medicare supplement insurance
12and concerning medical assistance through the Medi-Cal program,
13including benefits as a qualified Medicare beneficiary (QMB) and
14a specified low-income Medicare beneficiary (SLMB). If you want
15to discuss buying Medicare supplement insurance with a trained
16insurance counselor, call the California Department of Insurance’s
17toll-free
telephone number 1-800-927-HELP, and ask how to
18contact your local Health Insurance Counseling and Advocacy
19Program (HICAP) office. HICAP is a service provided free of
20charge by the State of California.
21
22(Questions)
23
24If you lost or are losing other health insurance coverage and
25received a notice from your prior insurer saying you were eligible
26for guaranteed issue of a Medicare supplement insurance policy
27or that you had certain rights to buy such a policy, you may be
28guaranteed acceptance in one or more of our Medicare supplement
29plans. Please include a copy of the notice from your prior insurer
30with your application. PLEASE ANSWER ALL QUESTIONS.
31[Please mark Yes or No below with an “X.”]
32To the best of your knowledge,
33(1) (a) Did you turn 65 years of age in the last 6begin delete monthsend delete
34begin insert months?end insert
35Yes____ No____
36(b) Did you enroll in Medicare Part B in the last 6begin delete monthsend delete
37begin insert
months?end insert
38Yes____ No____
39(c) If yes, what is the effectivebegin delete dateend deletebegin insert date?end insert ___________________
(2) Are you covered for medical assistance through California’s Medi-Calbegin delete programend deletebegin insert program?end insert
NOTE TO APPLICANT: If you have a share of cost under the Medi-Cal program, please answer NO to this question.
Yes____ No____
If yes,
(a) Will Medi-Cal pay your premiums for this Medicare supplementbegin delete policyend deletebegin insert
policy?end insert
Yes____ No____
(b) Do you receive benefits from Medi-Cal OTHER THAN payments toward your Medicare Part Bbegin delete premiumend deletebegin insert premium?end insert
Yes____ No____
(3) (a) If you had coverage from any Medicare plan other than original Medicare within the past 63 days (for example, a Medicare Advantage plan or a Medicare HMO or PPO), fill in your start and end dates below. If you are still covered under this plan, leave “END” blank.
START __/__/__ END __/__/__
(b) If you are still covered under the Medicare plan, do you intend to replace your current coverage with this new Medicare supplementbegin delete policyend deletebegin insert
policy?end insert
Yes____ No____
(c) Was this your first time in this type of Medicarebegin delete planend deletebegin insert plan?end insert
Yes____ No____
(d) Did you drop a Medicare supplement policy to enroll in the Medicarebegin delete planend deletebegin insert plan?end insert
Yes____ No____
(4) (a) Do you have another Medicare supplement
policy inbegin delete forceend deletebegin insert force?end insert
Yes____ No____
(b) If so, with what company, and what plan do you have [optional for directbegin delete mailers]end deletebegin insert mailers]?end insert
Yes____ No____
(c) If so, do you intend to replace your current Medicare supplement policy with thisbegin delete policyend deletebegin insert policy?end insert
Yes____ No____
(5) Have you had coverage under any other health insurance within the past 63begin delete daysend deletebegin insert days?end insert (For example, an employer, union, or individual plan)
Yes____ No____
(a) If so, with what companies and what kind ofbegin delete policyend deletebegin insert policy?end insert
________________________________________________
________________________________________________
________________________________________________
________________________________________________
(b) What are your dates of coverage under the otherbegin delete policyend deletebegin insert policy?end insert
START __/__/__ END __/__/__
(If you are still covered under the other policy, leave “END” blank.)begin insert”end insert
(b) Agents shall list any other health insurance policies they have sold to the applicant as follows:
(1) List policies sold that are still in force.
(2) List policies sold in the past five years that are no longer in force.
(c) In the case of a direct response issuer, a copy of the application or supplemental form, signed by the applicant, and acknowledged by the issuer, shall be returned to the applicant by the issuer upon delivery of the policy.
(d) Upon determining that a sale will involve replacement of Medicare supplement coverage, any issuer, other than a direct response issuer, or its agent, shall furnish the applicant, prior to issuance for delivery of the Medicare supplement policy or certificate, a notice regarding replacement of Medicare supplement coverage. One copy of the notice signed by the applicant and the agent, except where the coverage is sold without an agent, shall be provided to the applicant and an additional signed copy shall be retained by the issuer as provided in Section 10508. A direct response issuer shall deliver to the applicant at the time of the issuance of the policy the notice regarding replacement of Medicare supplement coverage.
(e) The notice required by subdivision (d) for an issuer shall be in the form specified by the commissioner, using, to the extent practicable, a model notice prepared by the National Association of Insurance Commissioners for this purpose. The replacement notice shall be printed in no less than 12-point type in substantially the following form:
[Insurer’s name and address]
NOTICE TO APPLICANT REGARDING REPLACEMENT OF MEDICARE SUPPLEMENT COVERAGE OR MEDICARE ADVANTAGE
SAVE THIS NOTICE! IT MAY BE IMPORTANT IN THE FUTURE.
If you intend to cancel or terminate existing Medicare supplement or Medicare Advantage insurance and replace it with coverage issued by [company name], please review the new coverage carefully and replace the existing coverage ONLY if the new coverage materially improves your position. DO NOT CANCEL YOUR PRESENT COVERAGE UNTIL YOU HAVE RECEIVED YOUR NEW POLICY AND ARE SURE THAT YOU WANT TO KEEP IT.
If you decide to purchase the new coverage, you will have 30 days after you receive the policy to return it to the insurer, for any reason, and receive a refund of your money.
If you want to discuss buying Medicare supplement or Medicare Advantage coverage with a trained insurance counselor, call the California Department of Insurance’s toll-free telephone number 1-800-927-HELP, and ask how to contact your local Health Insurance Counseling and Advocacy Program (HICAP) office. HICAP is a service provided free of charge by the State of California.
STATEMENT TO APPLICANT FROM THE INSURER AND AGENT: I have reviewed your current health insurance coverage. To the best of my knowledge, the replacement of insurance involved in this transaction does not duplicate coverage or, if applicable, Medicare Advantage coverage because you intend to terminate your existing Medicare supplement coverage or leave your Medicare Advantage plan. In addition, the replacement coverage contains benefits that are clearly and substantially greater than your current benefits for the following reasons:
__ Additional benefits that are: ______
__ No change in benefits, but lower premiums.
__ Fewer benefits and lower premiums.
__ Plan has outpatient prescription drug coverage and applicant is enrolled in Medicare Part D.
__ Disenrollment from a Medicare Advantage plan. Reasons for disenrollment:
__ Other reasons specified here: ______
1. Note: If the issuer of the Medicare supplement policy being applied for does not impose, or is otherwise prohibited from imposing, preexisting condition limitations, please skip to statement 3 below. Health conditions that you may presently have (preexisting conditions) may not be immediately or fully covered under the new policy. This could result in denial or delay of a claim for benefits under the new policy, whereas a similar claim might have been payable under your present policy.
2. State law provides that your replacement Medicare supplement policy may not contain new preexisting conditions, waiting periods, elimination periods, or probationary periods. The insurer will waive any time periods applicable to preexisting conditions, waiting periods, elimination periods, or probationary periods in the new coverage for similar benefits to the extent that time was spent (depleted) under the original policy.
3. If you still wish to terminate your present policy and replace it with new coverage, be certain to truthfully and completely answer any and all questions on the application concerning your medical and health history. Failure to include all material medical information on an application requesting that information may provide a basis for the insurer to deny any future claims and to refund your premium as though your policy had never been in force. After the application has been completed and before you sign it, review it carefully to be certain that all information has been properly recorded. [If the policy or certificate is guaranteed issue, this paragraph need not appear.]
DO NOT CANCEL YOUR PRESENT POLICY UNTIL YOU HAVE RECEIVED YOUR NEW POLICY AND ARE SURE THAT YOU WANT TO KEEP IT.
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(Signature of Agent, Broker, or Other Representative) |
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(Signature of Applicant) |
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(f) begin deleteNo end deletebegin insertAn end insertissuer, broker, agent, or other person shallbegin insert notend insert
cause an insured to replace a Medicare supplement insurance policy unnecessarily. In recommending replacement of any Medicare supplement insurance, an agent shall make reasonable efforts to determine the appropriateness to the potential insured.
(g) An issuer shall not require, request, or obtain health information as part of the application process for an applicant who is eligible for guaranteed issuance of, or open enrollment for, any Medicare supplement coverage pursuant to Section 10192.11 or 10192.12, except for purposes of paragraph (1) or (2) of subdivision (a) of Section 10192.11 when the applicant is first enrolled in Medicare Part B. The application form shall include a clear and conspicuous statement that the applicant is not required to provide health information during a period where guaranteed issue or open enrollment applies, as specified in Section 10192.11 or 10192.12, except for purposes of paragraph (1) or (2)
of subdivision (a) of Section 10192.11 when the applicant is first enrolled in Medicare Part B, and shall inform the applicant of those periods of guaranteed issuance of Medicare supplement coverage. This subdivisionbegin delete shallend deletebegin insert doesend insert not prohibit an issuer from requiring proof of eligibility for a guaranteed issuance of Medicare supplement coverage.
Section 10753.06.5 of the Insurance Code is
24amended to read:
(a) With respect to small employer health benefit
26plans offered outside the Exchange, after a small employer submits
27a completed application, the carrier shall, within 30 days, notify
28the employer of the employer’s actual rates in accordance with
29Section 10753.14. The employerbegin delete shall haveend deletebegin insert hasend insert 30 days in which
30to exercise the right to buy coverage at the quoted rates.
31(b) Except as required under subdivision (c), when a small
32employer submits a premium payment, based on the quoted rates,
33and that payment is delivered or postmarked, whichever occurs
34earlier, within the first
15 days of a month, coverage shall become
35effective no later than the first day of the following month. When
36that payment is neither delivered nor postmarked until after the
3715th day of a month, coverage shall become effective no later than
38the first day of the second month following delivery or postmark
39of the payment.
P554 1(c) (1) With respect to a small employer health benefit plan
2offered through the Exchange, a carrier shall apply coverage
3effective dates consistent with those required under Section
4155.720 of Title 45 of the Code of Federal Regulations and
5begin delete paragraph (2)end delete of subdivision (e) of Section 10965.3.
6(2) With respect to a small employer health benefit plan offered
7outside the Exchange for which an individual applies during a
8special enrollment period described in
paragraph (3) of subdivision
9(b) of Section 10753.05, the following provisions shall apply:
10(A) Coverage under the plan shall become effective no later
11than the first day of the first calendar month beginning after the
12date the carrier receives the request for special enrollment.
13(B) Notwithstanding subparagraph (A), in the case of a birth,
14adoption, or placement for adoption, coverage under the plan shall
15become effective on the date of birth, adoption, or placement for
16adoption.
17(d) During the first 30 days of coverage, the small employer
18shall have the option of changing coverage to a different health
19benefit plan offered by the same carrier. If a small employer
20notifies the carrier of the change within the first 15 days of a month,
21coverage under the new health benefit plan shall become effective
22no later than
the first day of the following month. If a small
23employer notifies the carrier of the change after the 15th day of a
24month, coverage under the new health benefit plan shall become
25effective no later than the first day of the second month following
26notification.
27(e) All eligible employees and dependents listed on a small
28employer’s completed application shall be covered on the effective
29date of the health benefit plan.
The heading of Chapter 17 (commencing with
31Section 12693.99) of Part 6.2 of Division 2 of the Insurance Code
32 is repealed.
33
Section 12880.4 of the Insurance Code is amended
37to read:
(a) Whenever the commissioner shall have reason
39to believe that a person has engaged or is engaging in this state in
40a violation of thisbegin delete article,end deletebegin insert part,end insert and that a proceeding by the
P555 1commissioner in respect thereto would be to the interest of the
2public, he or she shall issue and serve upon that person an order
3to show cause containing a statement of the charges in that respect,
4a statement of that person’s potential liability under this part, and
5a notice of a hearing thereon to be held at a time and place fixed
6therein, which shall not be less than 30 days after the service
7thereof, for the purpose of determining whether the commissioner
8
should issue an order to that person to pay the penalty imposed by
9Section 12880.3 and to cease and desist those methods, acts, or
10practices, or any of them, that violate thisbegin delete article.end deletebegin insert part.end insert
11(b) If the charges or any of them are found to be justified, the
12commissioner shall issue and cause to be served upon that person
13an order requiring that person to pay the penalty imposed by
14Section 12880.3 and to cease and desist from engaging in those
15methods, acts, or practices found to be in violation of this part.
16(c) The hearing shall be conducted in accordance with the
17Administrative Procedure Act (Chapter 5 (commencing with
18Section 11500) of Part 1 of Division 3 of Title 2 of the Government
19Code),
except that the hearings may be conducted by an
20administrative law judge in the administrative law bureau when
21the proceedings involve a common question of law or fact with
22another proceeding arising under other Insurance Code sections
23that may be conducted by administrative law bureau administrative
24law judges. The commissioner and the appointed administrative
25law judge shall have all the powers granted under the
26Administrative Procedure Act.
27(d) The personbegin delete shall beend deletebegin insert isend insert entitled to have the proceedings and
28the order reviewed by means of any remedy provided by Section
2912940 or by the Administrative Procedure Act.
Section 1019 of the Labor Code is amended to read:
(a) Itbegin delete shall beend deletebegin insert isend insert unlawful for an employer or any other
32person or entity to engage in, or to direct another person or entity
33to engage in, unfair immigration-related practices against any
34person for the purpose of, or with the intent of, retaliating against
35any person for exercising any right protected under this code or
36by any local ordinance applicable to employees. Exercising a right
37protected by this code or local ordinance includes the following:
38(1) Filing a complaint or informing any person of an employer’s
39or other party’s alleged violation of this code or local
ordinance,
40so long as the complaint or disclosure is made in good faith.
P556 1(2) Seeking information regarding whether an employer or other
2party is in compliance with this code or local ordinance.
3(3) Informing a person of his or her potential rights and remedies
4under this code or local ordinance, and assisting him or her in
5asserting those rights.
6(b) (1) As used in this chapter, “unfair immigration-related
7practice” means any of the following practices, when undertaken
8for the retaliatory purposes prohibited by subdivision (a):
9(A) Requesting more or different documents than are required
10under Section 1324a(b) of Title 8 of the United States Code, or a
11refusal to honor documents tendered pursuant to that section that
12on their face
reasonably appear to be genuine.
13(B) Using the federal E-Verify system to check the employment
14authorization status of a person at a time or in a manner not
15required under Section 1324a(b) of Title 8 of the United States
16Code, or not authorized under any memorandum of understanding
17governing the use of the federal E-Verify system.
18(C) Threatening to file or the filing of a false police report, or
19a false report or complaint with any state or federal agency.
20(D) Threatening to contact or contacting immigration authorities.
21(2) “Unfair immigration-related practice” does not include
22conduct undertaken at the express and specific direction or request
23of the federal government.
24(c) Engaging in
an unfair immigration-related practice against
25a person within 90 days of the person’s exercise of rights protected
26under this code or local ordinance applicable to employees shall
27raise a rebuttable presumption of having done so in retaliation for
28the exercise of those rights.
29(d) (1) An employee or other person who is the subject of an
30unfair immigration-related practice prohibited by this section, or
31a representative of that employee or person, may bring a civil
32action for equitable relief and any applicable damages or penalties.
33(2) Upon a finding by a court of applicable jurisdiction of a
34violationbegin insert ofend insert this section, upon application by a party or on its own
35motion, a court may do the following:
36(A) For a first violation, order the appropriate government
37agencies to suspend all licenses that are held by the violating party
38for a period of up to 14 days. On receipt of the court’s order and
39notwithstanding any other law, the appropriate agencies shall
40suspend the licenses according to the court’s order.
P557 1(B) For a second violation, order the appropriate government
2agencies to suspend all licenses that are held by the violating party
3for a period of up to 30 days. On receipt of the court’s order and
4notwithstanding any other law, the appropriate agencies shall
5immediately suspend the licenses.
6(C) For a third or subsequent violation, order the appropriate
7government agencies to suspend for a period of up to 90 days all
8licenses that are held by the violating party. On receipt of the
9court’s order and notwithstanding any other law, the appropriate
10agencies shall
immediately suspend the licenses.
11(3) In determining whether a suspension of all licenses is
12appropriate under this subdivision, the court shall consider whether
13the employer knowingly committed an unfair immigration-related
14practice, the good faith efforts of the employer to resolve any
15alleged unfair immigration-related practice after receiving notice
16of the violations, as well as the harm other employees of the
17employer, or employees of other employers on a multiemployer
18job site, will suffer as a result of the suspension of all licenses.
19(4) An employee or other person who is the subject of an unfair
20immigration-related practice prohibited by this section, and who
21prevails in an action authorized by this section, shall recover his
22or her reasonable attorney’s fees and costs, including any expert
23witness costs.
24(e) As used in this chapter:
25(1) “License” means any agency permit, certificate, approval,
26registration, or charter that is required by law and that is issued by
27any agency for the purposes of operating a business in this state
28and that is specific to the business location or locations where the
29unfair immigration-related practice occurred. “License” does not
30include a professional license.
31(2) “Violation” means each incident when an unfair
32immigration-related practice was committed, without reference to
33the number of employees involved in the incident.
Section 1311.5 of the Labor Code is amended to
35read:
(a) This section shall be known and may be cited as
37the Child Labor Protection Act of 2014.
38(a)
end delete
39begin insert(b)end insert The statute of limitations for claims arising under this code
40shall be tolled until an individual allegedly aggrieved by an
P558 1unlawful practice attains the age of majority. This subdivision is
2declaratory of existing law.
3(b)
end delete
4begin insert(c)end insert In addition to other remedies available, an individual who
5is discharged, threatened with discharge, demoted, suspended,
6retaliated against, subjected to an adverse action, or in any other
7manner discriminated against in the terms or conditions of his or
8her employment because the individual filed a claim or civil action
9alleging a violation of this code that arose while the individual
10was a minor, whether the claim or civil action was filed before or
11after the individual reached the age of majority,begin delete shall beend deletebegin insert isend insert entitled
12to treble damages.
13(c)
end delete
14begin insert(d)end insert A class “A” violation, as defined in subdivision (a) of Section
151288, that involves a minor 12 years of age or younger shall be
16subject to a civil penalty in an amount not less than twenty-five
17thousand dollars ($25,000) and not exceeding fifty thousand dollars
18($50,000) for each violation.
Section 1741.1 of the Labor Code is amended to
20read:
(a) The period for service of assessments shall be
22tolled for the period of time required by the Director of Industrial
23Relations to determine whether a project is a public work, including
24a determination on administrative appeal, if applicable, pursuant
25to subdivisions (b) and (c) of Section 1773.5. The period for service
26of assessments shall also be tolled for the period of time that a
27contractor or subcontractor fails to provide in a timely manner
28certified payroll records pursuant to a request from the Labor
29Commissioner or a joint labor-management committee under
30Section 1776, or an approved labor compliance program under
31Section 1771.5 or 1771.7.
32(b) (1) The body awarding the contract forbegin insert
aend insert public work shall
33furnish, within 10 days after receipt of a written request from the
34Labor Commissioner, a copy of the valid notice of completion for
35the public work filed in the office of the county recorder, or a
36document evidencing the awarding body’s acceptance of the public
37work on a particular date, whichever occurs later, by first-class
38mail addressed to the office of the Labor Commissioner that is
39listed on the written request. If, at the time of receipt of the Labor
40Commissioner’s written request, a valid notice of completion has
P559 1not been filed by the awarding body in the office of the county
2recorder and there is no document evidencing the awarding body’s
3acceptance of the public work on a particular date, the awarding
4body shall so notify the office of the Labor Commissioner that is
5listed on the written request. Thereafter, the awarding body shall
6furnish copies of the applicable document within 10 days after
7filing a valid notice of completion with the
county recorder’s office,
8or within 10 days of the awarding body’s acceptance of the public
9work on a particular date.
10(2) If the awarding body fails to timely furnish the Labor
11Commissioner with the documents identified in paragraph (1), the
12period for service of assessments under Section 1741 shall be tolled
13until the Labor Commissioner’s actual receipt of the valid notice
14of completion for the public work or a document evidencing the
15awarding body’s acceptance of the public work on a particular
16date.
17(c) The tolling provisions in this section shall also apply to the
18period of time for commencing an action brought by a joint
19labor-management committee pursuant to Section 1771.2.
Section 5406 of the Labor Code is amended to read:
(a) Except as provided in Section 5406.5, 5406.6, or
225406.7, the period within which may be commenced proceedings
23for the collection of the benefits provided by Article 4
24(commencing with Section 4700) of Chapter 2 of Part 2 is one
25year from:
26(1) The date of death if death occurs within one year from date
27of injury.
28(2) The date of last furnishing of any benefits under Chapter 2
29(commencing with Section 4550) of Part 2, if death occurs more
30than one year from the date of injury.
31(3) The date of death,begin delete whereend deletebegin insert
ifend insert death occurs more than one year
32after the date of injury and compensation benefits have been
33furnished.
34(b) Proceedings shall not be commenced more than one year
35after the date of death, nor more than 240 weeks from the date of
36injury.
Section 6319 of the Labor Code is amended to read:
(a) If, after an inspection or investigation, the division
39issues a citation pursuant to Section 6317 or an order pursuant to
40Section 6308, it shall, within a reasonable time after the termination
P560 1of the inspection or investigation, notify the employer by certified
2mail of the citation or order, and that the employer has 15 working
3days from receipt of the notice within which to notify the appeals
4board that he or she wishes to contest the citation or order for any
5reason set forth in Section 6600 or 6600.5.
6(b) begin deleteAny end deletebegin insertAn end insertemployer served by certified mail with a notice of
7civil
penalty may appeal to the appeals board within 15 working
8days from receipt of that notice for any reason set forth in Section
96600. If the citation is issued for a violation involving the condition
10or operation of any machine, device, apparatus, or equipment, and
11a person other than the employer is obligated to the employer to
12repair the machine, device, apparatus, or equipment and to pay
13any penalties assessed against the employer, the other person may
14appeal to the appeals board within 15 working days of the receipt
15of the citation by the employer for any reasons set forth in Section
166600.
17(c) The director shall promulgate regulations covering the
18assessment of civil penalties under this chapter which give due
19consideration to the appropriateness of the penalty with respect to
20the following factors:
21(1) The size of the business of the employer being charged.
22(2) The gravity of the violation.
23(3) The good faith of the employer, including timely abatement.
24(4) The history of previous violations.
25(d) Notwithstanding subdivision (c), if serious injury, illness,
26exposure, or death is caused bybegin delete anyend deletebegin insert aend insert serious, willful, or repeated
27violation, or bybegin delete anyend deletebegin insert aend insert failure to correct a serious violation within
28the time permitted for its correction, the
penalty shall not be
29reduced forbegin delete anyend deletebegin insert aend insert reason other than the size of the business of the
30employer being charged. Whenever the division issues a citation
31for a violation covered by this subdivision, it shall notify the
32employer of its determination that serious injury, illness, exposure
33or death was caused by the violation and shall, upon request,
34provide the employer with a copy of the inspection report.
35(e) The employerbegin delete shallend deletebegin insert isend insert notbegin delete beend delete liable for a civil penalty under
36this part for
any citation issued by a division representative
37providing consulting services pursuant to Sections 6354 and 6355.
38(f) Whenever a citation of a self-insured employer for abegin delete willful,end delete
39begin insert
willfulend insert or repeat serious violation of the standard adopted pursuant
40to Section 6401.7 becomes final, the division shall notify the
P561 1director so that a hearing may be held to determine whether good
2cause exists to revoke the employer’s certificate of consent to
3self-insure as provided in Section 3702.
4(g) Based upon the evidence, the division may propose
5appropriate modifications concerning the characterization of
6violations and corresponding modifications to civil penalties as a
7result thereof. For serious violations, the division shall not grant
8a proposed modification to civil penalties for abatement or credit
9for abatement unless the employer has done any of the following:
10(1) Abated the violation at the time of the initial inspection.
11(2) Abated the violation at the time of
a subsequent inspection
12prior to the issuance of a citation.
13(3) Submitted a signed statement under penalty of perjury and
14supporting evidence, when necessary to prove abatement, in
15accordance with subdivision (b) of Section 6320.
Section 6404.5 of the Labor Code is amended to
17read:
(a) The Legislature finds and declares that regulation
19of smoking in the workplace is a matter of statewide interest and
20concern. It is the intent of the Legislature in enacting this section
21to prohibit the smoking of tobacco products in all (100 percent of)
22enclosed places of employment in this state, as covered by this
23section, thereby eliminating the need of local governments to enact
24workplace smoking restrictions within their respective jurisdictions.
25It is further the intent of the Legislature to create a uniform
26statewide standard to restrict and prohibit the smoking of tobacco
27products in enclosed places of employment, as specified in this
28section, in order to reduce employee exposure to environmental
29tobacco smoke to a level that will prevent anything other than
30insignificantly harmful effects to exposed employees, and
also to
31eliminate the confusion and hardship that can result from enactment
32or enforcement of disparate local workplace smoking restrictions.
33Notwithstanding any other provision of this section, it is the intent
34of the Legislature thatbegin delete anyend deletebegin insert anend insert area not defined as a “place of
35employment” pursuant to subdivision (d) or in which the smoking
36of tobacco products is not regulated pursuant to subdivision (e)
37begin delete shall beend deletebegin insert isend insert subject to local regulation of smoking of tobacco
38products.
39(b) begin deleteNo end deletebegin insertAn
end insertemployer shallbegin insert notend insert knowingly or intentionally permit,
40andbegin delete noend deletebegin insert aend insert person shallbegin insert notend insert engage in, the smoking of tobacco
P562 1products in an enclosed space at a place of employment. “Enclosed
2space” includes lobbies, lounges, waiting areas, elevators,
3stairwells, and restrooms that are a structural part of the building
4and not specifically defined in subdivision (d).
5(c) For purposes of this section, an employer who permits any
6nonemployee access to his or her place of employment on a regular
7basis has not acted knowingly or
intentionally in violation of this
8section if he or she has taken the following reasonable steps to
9prevent smoking by a nonemployee:
10(1) Posted clear and prominent signs, as follows:
11(A) Where smoking is prohibited throughout the building or
12structure, a sign stating “No smoking” shall be posted at each
13entrance to the building or structure.
14(B) Where smoking is permitted in designated areas of the
15building or structure, a sign stating “Smoking is prohibited except
16in designated areas” shall be posted at each entrance to the building
17or structure.
18(2) Has requested, when appropriate, that a nonemployee who
19is smoking refrain from smoking in the enclosed workplace.
20For purposes of this subdivision, “reasonable
steps” does not
21include (A) the physical ejection of a nonemployee from the place
22of employment or (B) any requirement for making a request to a
23nonemployee to refrain from smoking, under circumstances
24involving a risk of physical harm to the employer or any employee.
25(d) For purposes of this section, “place of employment” does
26not include any of the following:
27(1) Sixty-five percent of the guestroom accommodations in a
28hotel, motel, or similar transient lodging establishment.
29(2) Areas of the lobby in a hotel, motel, or other similar transient
30lodging establishment designated for smoking by the establishment.
31An establishment may permit smoking in a designated lobby area
32that does not exceed 25 percent of the total floor area of the lobby
33or, if the total area of the lobby is 2,000 square feet or less, that
34does not
exceed 50 percent of the total floor area of the lobby. For
35purposes of this paragraph, “lobby” means the common public
36area of an establishment in which registration and other similar or
37related transactions, or both, are conducted and in which the
38establishment’s guests and members of the public typically
39congregate.
P563 1(3) Meeting and banquet rooms in a hotel, motel, other transient
2lodging establishment similar to a hotel or motel, restaurant, or
3public convention center, except while food or beverage functions
4are taking place, including setup, service, and cleanup activities,
5or when the room is being used for exhibit purposes. At times
6when smoking is not permitted in a meeting or banquet room
7pursuant to this paragraph, the establishment may permit smoking
8in corridors and prefunction areas adjacent to and serving the
9meeting or banquet room if no employee is stationed in that
10corridor or area on other than a passing basis.
11(4) Retail or wholesale tobacco shops and private smokers’
12lounges. For purposes of this paragraph:
13(A) “Private smokers’ lounge” means any enclosed area in or
14attached to a retail or wholesale tobacco shop that is dedicated to
15the use of tobacco products, including, but not limited to, cigars
16and pipes.
17(B) “Retail or wholesale tobacco shop” means any business
18establishment the main purpose of which is the sale of tobacco
19products, including, but not limited to, cigars, pipe tobacco, and
20smoking accessories.
21(5) Cabs of motortrucks, as defined in Section 410 of the Vehicle
22Code, or truck tractors, as defined in Section 655 of the Vehicle
23Code, ifbegin delete noend delete nonsmoking employees
arebegin insert notend insert present.
24(6) Warehouse facilities. For purposes of this paragraph,
25“warehouse facility” means a warehouse facility with more than
26100,000 square feet of total floorspace, and 20 or fewer full-time
27employees working at the facility, but does not include any area
28within a facility that is utilized as office space.
29(7) Gaming clubs, in which smoking is permitted by subdivision
30(f). For purposes of this paragraph, “gaming club” means any
31gaming club, as defined in Section 19802 of the Business and
32Professions Code, or bingo facility, as defined in Section 326.5 of
33the Penal Code, that restricts access to minors under 18 years of
34age.
35(8) Bars and taverns, in which smoking is permitted by
36subdivision (f).
For purposes of this paragraph, “bar” or “tavern”
37means a facility primarily devoted to the serving of alcoholic
38beverages for consumption by guests on the premises, in which
39the serving of food is incidental. “Bar or tavern” includes those
40facilities located within a hotel, motel, or other similar transient
P564 1occupancy establishment. However, when located within a building
2in conjunction with another use, including a restaurant, “bar” or
3“tavern” includes only those areas used primarily for the sale and
4service of alcoholic beverages. “Bar” or “tavern” does not include
5the dining areas of a restaurant, regardless of whether alcoholic
6beverages are served therein.
7(9) Theatrical production sites, if smoking is an integral part of
8the story in the theatrical production.
9(10) Medical research or treatment sites, if smoking is integral
10to the research and treatment being conducted.
11(11) Private residences, except for private residences licensed
12as family day carebegin delete homes,end deletebegin insert homesend insert where smoking is prohibited
13pursuant to Section 1596.795 of the Health and Safety Code.
14(12) Patient smoking areas in long-term health care facilities,
15as defined in Section 1418 of the Health and Safety Code.
16(13) Breakrooms designated by employers for smoking, provided
17that all of the following conditions are met:
18(A) Air from the smoking room shall be exhausted directly to
19the outside by an exhaust fan. Air from the smoking room shall
20not be recirculated to other parts
of the building.
21(B) The employer shall comply with any ventilation standard
22or other standard utilizing appropriate technology, including, but
23not limited to, mechanical, electronic, and biotechnical systems,
24adopted by the Occupational Safety and Health Standards Board
25or the federal Environmental Protection Agency. If both adopt
26inconsistent standards, the ventilation standards of the Occupational
27Safety and Health Standards Board shall be no less stringent than
28the standards adopted by the federal Environmental Protection
29Agency.
30(C) The smoking room shall be located in a nonwork area where
31no one, as part of his or her work responsibilities, is required to
32enter. For purposes of this subparagraph, “work responsibilities”
33does not include any custodial or maintenance work carried out in
34the breakroom when it is unoccupied.
35(D) There are sufficient nonsmoking breakrooms to
36accommodate nonsmokers.
37(14) Employers with a total of five or fewer employees, either
38full time or part time, may permit smoking where all of the
39following conditions are met:
40(A) The smoking area is not accessible to minors.
P565 1(B) All employees who enter the smoking area consent to permit
2smoking. No one, as part of his or her work responsibilities, shall
3be required to work in an area where smoking is permitted. An
4employer who is determined by the division to have used coercion
5to obtain consent or who has required an employee to work in the
6smoking area shall be subject to the penalty provisions of Section
76427.
8(C) Air from the smoking area shall be exhausted directly to
9the outside by
an exhaust fan. Air from the smoking area shall not
10be recirculated to other parts of the building.
11(D) The employer shall comply with any ventilation standard
12or other standard utilizing appropriate technology, including, but
13not limited to, mechanical, electronic, and biotechnical systems,
14adopted by the Occupational Safety and Health Standards Board
15or the federal Environmental Protection Agency. If both adopt
16inconsistent standards, the ventilation standards of the Occupational
17Safety and Health Standards Board shall be no less stringent than
18the standards adopted by the federal Environmental Protection
19Agency.
20This paragraph shall not be construed to (i) supersede or render
21inapplicable any condition or limitation on smoking areas made
22applicable to specific types of business establishments by any other
23paragraph of this subdivision or (ii) apply in lieu of any otherwise
24applicable paragraph of
this subdivision that has become
25inoperative.
26(e) Paragraphs (13) and (14) of subdivision (d) shall not be
27construed to require employers to provide reasonable
28accommodation to smokers, or to provide breakrooms for smokers
29or nonsmokers.
30(f) (1) Except as otherwise provided in this subdivision,
31smoking may be permitted in gaming clubs, as defined in paragraph
32(7) of subdivision (d), and in bars and taverns, as defined in
33paragraph (8) of subdivision (d), until the earlier of the following:
34(A) January 1, 1998.
35(B) The date of adoption of a regulation (i) by the Occupational
36Safety and Health Standards Board reducing the permissible
37employee exposure level to environmental tobacco smoke to a
38level that will prevent anything other
than insignificantly harmful
39effects to exposed employees or (ii) by the federal Environmental
40Protection Agency establishing a standard for reduction of
P566 1permissible exposure to environmental tobacco smoke to an
2exposure level that will prevent anything other than insignificantly
3harmful effects to exposed persons.
4(2) If a regulation specified in subparagraph (B) of paragraph
5(1) is adopted on or before January 1, 1998, smoking may thereafter
6be permitted in gaming clubs and in bars and taverns, subject to
7full compliance with, or conformity to, the standard in the
8regulation within two years following the date of adoption of the
9regulation. An employer failing to achieve compliance with, or
10conformity to, the regulation within this two-year period shall
11prohibit smoking in the gaming club, bar, or tavern until
12compliance or conformity is achieved. If the Occupational Safety
13and Health Standards Board and the federal Environmental
14Protection
Agency both adopt regulations specified in subparagraph
15(B) of paragraph (1) that are inconsistent, the regulations of the
16Occupational Safety and Health Standards Board shall be no less
17stringent than the regulations of the federal Environmental
18Protection Agency.
19(3) If a regulation specified in subparagraph (B) of paragraph
20(1) is not adopted on or before January 1, 1998, the exemptions
21specified in paragraphs (7) and (8) of subdivision (d) shall become
22inoperative on and after January 1, 1998, until a regulation is
23adopted. Upon adoption of such a regulation on or after January
241, 1998, smoking may thereafter be permitted in gaming clubs and
25in bars and taverns, subject to full compliance with, or conformity
26to, the standard in the regulation within two years following the
27date of adoption of the regulation. An employer failing to achieve
28compliance with, or conformity to, the regulation within this
29two-year period shall prohibit smoking in
the gaming club, bar,
30or tavern until compliance or conformity is achieved. If the
31Occupational Safety and Health Standards Board and the federal
32Environmental Protection Agency both adopt regulations specified
33in subparagraph (B) of paragraph (1) that are inconsistent, the
34regulations of the Occupational Safety and Health Standards Board
35shall be no less stringent than the regulations of the federal
36Environmental Protection Agency.
37(4) From January 1, 1997, to December 31, 1997, inclusive,
38smoking may be permitted in gaming clubs, as defined in paragraph
39(7) of subdivision (d), and in bars and taverns, as defined in
P567 1paragraph (8) of subdivision (d), subject to both of the following
2conditions:
3(A) If practicable, the gaming club or bar or tavern shall
4establish a designated nonsmoking area.
5(B) If feasible,begin delete noend deletebegin insert
anend insert employee shallbegin insert notend insert be required, in the
6performance of ordinary work responsibilities, to enter any area
7in which smoking is permitted.
8(g) The smoking prohibition set forth in this sectionbegin delete shall begin insert constitutesend insert a uniform statewide standard for regulating
9constituteend delete
10the smoking of tobacco products in enclosed places of employment
11andbegin delete shall supersedeend deletebegin insert supersedesend insert and render unnecessary the local
12enactment or enforcement of local
ordinances regulating the
13smoking of tobacco products in enclosed places of employment.
14Insofar as the smoking prohibition set forth in this section is
15applicable to all (100-percent) places of employment within this
16state and, therefore, provides the maximum degree of coverage,
17the practical effect of this section is to eliminate the need of local
18governments to enact enclosed workplace smoking restrictions
19within their respective jurisdictions.
20(h) begin deleteNothing in this end deletebegin insertThis end insertsectionbegin delete shallend deletebegin insert does notend insert prohibit an
21employer from prohibiting smoking in an enclosed place of
22
employment for any reason.
23(i) The enactment of local regulation of smoking of tobacco
24products in enclosed places of employment by local governments
25shall be suspended only for as long as, and to the extent that, the
26(100-percent) smoking prohibition provided for in this section
27remains in effect. In the event this section is repealed or modified
28by subsequent legislative or judicial action so that the (100-percent)
29smoking prohibition is no longer applicable to all enclosed places
30of employment in California, local governments shall have the full
31right and authority to enforce previously enacted, and to enact and
32enforce new, restrictions on the smoking of tobacco products in
33enclosed places of employment within their jurisdictions, including
34a complete prohibition of smoking. Notwithstanding any other
35provision of this section,begin delete anyend deletebegin insert
anend insert area not defined as a “place of
36employment” or in which smoking is not regulated pursuant to
37subdivision (d) or (e),begin delete shall beend deletebegin insert isend insert subject to local regulation of
38smoking of tobacco products.
39(j) begin deleteAny end deletebegin insertA end insertviolation of the prohibition set forth in subdivision
40(b) is an infraction, punishable by a fine not to exceed one hundred
P568 1dollars ($100) for a first violation, two hundred dollars ($200) for
2a second violation within one year, and five hundred dollars ($500)
3for a third and for each subsequent violation within one year. This
4
subdivision shall be enforced by local law enforcement agencies,
5including, but not limited to, local health departments, as
6determined by the local governing body.
7(k) Notwithstanding Section 6309, the division shall not be
8required to respond to any complaint regarding the smoking of
9tobacco products in an enclosed space at a place of employment,
10unless the employer has been found guilty pursuant to subdivision
11(j) of a third violation of subdivision (b) within the previous year.
12(l) Ifbegin delete anyend deletebegin insert aend insert provision of this act or the application thereof to any
13person or circumstances is held invalid, that invalidity shall not
14affect other provisions or applications of the act that can be given
15
effect without the invalid provision or application, and to this end
16the provisions of this act are severable.
Section 6625 of the Labor Code is amended to read:
(a) (1) Except as provided in subdivision (b), the filing
19of a petition for reconsiderationbegin delete shall suspendend deletebegin insert suspendsend insert for a period
20of 10 days the order or decision affected, insofar as it applies to
21the parties to the petition, unless otherwise ordered by the appeals
22board.
23(2) Except as provided in subdivision (b), the appealsbegin delete boardend delete
24begin insert board,end insert upon the terms and conditions
which it by order directs,
25may stay, suspend, or postpone the order or decision during the
26pendency of the reconsideration.
27(b) The filing of a petition for, or the pendency of,
28reconsideration of a final order or decision involving a citation
29classified as serious, repeat serious, or willful seriousbegin delete shallend deletebegin insert doesend insert
30 not stay or suspend the requirement to abate the hazards affirmed
31by the decision or order unless the employer demonstrates by a
32preponderance of the evidence that a stay or suspension of
33abatement will not adversely affect the health and safety of
34employees. The employer must request a stay or suspension of
35abatement by filing a written, verified petition with supporting
36declarations within 10 days after the issuance of the order or
37
decision.
Section 7873 of the Labor Code is amended to read:
(a) As used in this section, “trade secret” means a trade
40secret as defined in subdivision (d) of Section 6254.7 of the
P569 1Government Code or Section 1061 of the Evidence Code, and shall
2include the schedule submitted to the division pursuant to
3subdivision (b) of Section 7872 of this code, and the scheduling,
4duration, layout, configuration, and type of work to be performed
5during a turnaround. Upon completion of a turnaround, the
6scheduling and duration of that turnaround shall no longer be
7considered a trade secret. The wages, hours, benefits, job
8classifications, and training standards for employees performing
9work for petroleum refinery employers is not a trade secret.
10(b) (1) If a petroleum refinery employer believes that
11information
submitted to the division pursuant to Section 7872
12may involve the release of a trade secret, the petroleum refinery
13employer shall nevertheless provide this information to the
14division. The petroleum refinery employer may, at the time of
15submission, identify all or a portion of the information submitted
16to the division as trade secret and, to the extent feasible, segregate
17records designated as trade secret from the other records.
18(2) Subject to subdivisions (c), (d), and (e), the division shall
19not release to the public any information designated as a trade
20secret by the petroleum refinery employer pursuant to paragraph
21(1).
22(c) (1) Upon the receipt of a request for the release of
23information to the public that includes information that the
24petroleum refinery employer has notified the division is a trade
25secret pursuant to paragraph (1) of subdivision (b),
the division
26shall notify the petroleum refinery employer in writing of the
27request by certified mail, return receipt requested.
28(2) The division shall release the requested information to the
29public, unless both of the following occur:
30(A) Within 30 days of receipt of the notice of the request for
31information, thebegin delete refineryend delete petroleumbegin insert refineryend insert employer files an
32action in an appropriate court for a declaratory judgment that the
33information is subject to protection under subdivision (b) and
34promptly notifies the division of that action.
35(B) Within 120 days of receipt of the notice of the request for
36information, thebegin delete refineryend delete
petroleumbegin insert refineryend insert employer obtains an
37order prohibiting disclosure of the information to the public and
38promptly notifies the division of that action.
P570 1(3) This subdivision shall not be construed to allow a petroleum
2refinery employer to refuse to disclose the information required
3pursuant to this section to the division.
4(d) (1) Except as provided in subdivision (c),begin delete anyend delete information
5that has been designated as a trade secret by a petroleum refinery
6employer shall not be released to any member of the public, except
7thatbegin delete suchend deletebegin insert
thisend insert information may be disclosed to other officers or
8employees of the division when relevant inbegin delete anyend deletebegin insert aend insert proceeding of
9the division.
10(2) If the person requesting the release of the information or the
11petroleum refinery employer files an action to order or prohibit
12disclosure of trade secret information, the person instituting the
13proceeding shall name the person or the petroleum refinery
14employer as a real party in interest.
15(A) The petroleum refinery employer filing an action pursuant
16to paragraph (2) of subdivision (c) shall provide notice of the action
17to the person requesting the release of the information at the same
18time that the defendant in the
action is served.
19(B) The person filing an action to compel the release of
20information that includes information that the petroleum refinery
21employer has notified the division is a trade secret pursuant to
22paragraph (1) of subdivision (b) shall provide notice of the action
23to the petroleum refinery employer that submitted the information
24at the same time that the defendant in the action is served.
25(3) The court shall award costs and reasonable attorneys’ fees
26to the party that prevails in litigation filed pursuant to this section.
27The public agency shall not bear the court costs for any party
28named in litigation filed pursuant to this section.
29(e) This section shall not be construed to prohibit the exchange
30of trade secrets between local, state, or federal public agencies or
31state officials when those trade secrets
are relevant and reasonably
32necessary to the exercise of their authority.
33(f) An officer or employee of the division who, by virtue of that
34employment or official position, has possession of, or has access
35to, trade secret information, and who, knowing that disclosure of
36the information to the general public is prohibited by this section,
37knowingly and willfully discloses the information in any manner
38to a person he or she knows is not entitled to receive it, is guilty
39of a misdemeanor. A contractor with the division and an employee
40of the contractor, who has been furnished information as authorized
P571 1by this section, shall be considered an employee of the division
2for purposes of this section.
Section 19.8 of the Penal Code is amended to read:
(a) The following offenses are subject to subdivision (d)
5of Section 17: Sections 193.8, 330, 415, 485, 490.7, 555, 602.13,
6and 853.7 of this code; subdivision (c) of Section 532b, and
7subdivision (o) of Section 602 of this code; subdivision (b) of
8Section 25658 and Sections 21672, 25661, and 25662 of the
9Business and Professions Code; Section 27204 of the Government
10Code; subdivision (c) of Section 23109 and Sections 5201.1, 12500,
1114601.1, 27150.1, 40508, and 42005 of the Vehicle Code, and any
12other offense that the Legislature makes subject to subdivision (d)
13of Section 17. Except where a lesser maximum fine is expressly
14provided for a violation of those sections, a violation that is an
15infraction is punishable by a fine not exceeding two hundred fifty
16dollars ($250).
17(b) Except in cases where a different punishment is prescribed,
18every offense declared to be an infraction is punishable by a fine
19not exceeding two hundred fifty dollarsbegin delete ($250)end deletebegin insert ($250).end insert
20(c) Except for the violations enumerated in subdivision (d) of
21Section 13202.5 of the Vehicle Code, and Section 14601.1 of the
22Vehicle Code based upon failure to appear, a conviction for an
23offense made an infraction under subdivision (d) of Section 17 is
24not grounds for the suspension, revocation, or denial of a license,
25or for the revocation of probation or parole of the person convicted.
Section 132.5 of the Penal Code, as amended by
27Section 223 of Chapter 62 of the Statutes of 2003, is amended to
28read:
(a) The Legislature supports and affirms the
30constitutional right of every person to communicate on any subject.
31This section is intended to preserve the right of every accused
32person to a fair trial, the right of the people to due process of law,
33and the integrity of judicial proceedings. This section is not
34intended to prevent any person from disseminating any information
35or opinion.
36The Legislature hereby finds and declares that the disclosure for
37valuable consideration of information relating to crimes by
38prospective witnesses can cause the loss of credible evidence in
39criminal trials and threatens to erode the reliability of verdicts.
P572 1The Legislature further finds and declares that the disclosure for
2
valuable consideration of information relating to crimes by
3prospective witnesses creates an appearance of injustice that is
4destructive of public confidence.
5(b) A person who is a witness to an event or occurrence that he
6or she knows is a crime or who has personal knowledge of facts
7that he or she knows or reasonably should know may require that
8person to be called as a witness in a criminal prosecution shall not
9accept or receive, directly or indirectly, any money or its equivalent
10in consideration for providing information obtained as a result of
11witnessing the event or occurrence or having personal knowledge
12of the facts.
13(c) begin deleteAny end deletebegin insertA end insertperson who is a witness to an event or occurrence
14that
he or she reasonably should know is a crime shall not accept
15or receive, directly or indirectly, any money or its equivalent in
16consideration for providing information obtained as a result of his
17or her witnessing the event or occurrence.
18(d) The Attorney General or the district attorney of the county
19in which an alleged violation of subdivision (c) occurs may institute
20a civil proceeding. Where a final judgment is rendered in the civil
21proceeding, the defendant shall be punished for the violation of
22subdivision (c) by a fine equal to 150 percent of the amount
23received or contracted for by the person.
24(e) A violation of subdivision (b) is a misdemeanor punishable
25by imprisonment for a term not exceeding six months in a county
26jail, a fine not exceeding three times the amount of compensation
27requested, accepted, or received, or both the imprisonment and
28fine.
29(f) This section does not apply if more than one year has elapsed
30from the date of any criminal act related to the information that is
31provided under subdivision (b) or (c) unless prosecution has
32commenced for that criminal act. If prosecution has commenced,
33this section shall remain applicable until the final judgment in the
34action.
35(g) This section does not apply to any of the following
36circumstances:
37(1) Lawful compensation paid to expert witnesses, investigators,
38employees, or agents by a prosecutor, law enforcement agency,
39or an attorney employed to represent a person in a criminal matter.
P573 1(2) Lawful compensation provided to an informant by a
2prosecutor or law enforcement agency.
3(3) Compensation paid to a publisher, editor, reporter, writer,
4or other person connected with or employed by a newspaper,
5magazine, or other publication or a television or radio news reporter
6or other person connected with a television or radio station, for
7disclosing information obtained in the ordinary course of business.
8(4) Statutorily authorized rewards offered by governmental
9agencies or private reward programs offered by victims of crimes
10for information leading to the arrest and conviction of specified
11offenders.
12(5) Lawful compensation provided to a witness participating in
13the Witnessbegin delete Protectionend deletebegin insert Relocation and Assistanceend insert Program
14established pursuant to Title 7.5
(commencing with Section 14020)
15of Part 4.
16(h) For purposes of this section, “information” does not include
17a photograph, videotape, audiotape, or any other direct recording
18of an event or occurrence.
19(i) For purposes of this section, “victims of crimes” shall be
20construed in a manner consistent with Section 28 of Article I of
21the California Constitution, and shall include victims, as defined
22in subdivision (3) of Section 136.
Section 264.2 of the Penal Code is amended to read:
(a) Whenever there is an alleged violation or violations
25of subdivision (e) of Section 243, or Section 261, 261.5, 262, 273.5,
26286, 288a, or 289, the law enforcement officer assigned to the case
27shall immediately provide the victim of the crime with the “Victims
28of Domestic Violence” card, as specified in subparagraphbegin delete (G)end deletebegin insert (H)end insert
29 of paragraph (9) of subdivision (c) of Section 13701.
30(b) (1) The law enforcement officer, or his or her agency, shall
31immediately notify the local rape victim counseling center,
32whenever a victim of an alleged violation of Section
261, 261.5,
33262, 286, 288a, or 289 is transported to a hospital for any medical
34evidentiary or physical examination. The hospital may notify the
35local rape victim counseling center, when the victim of the alleged
36violation of Section 261, 261.5, 262, 286, 288a, or 289 is presented
37to the hospital for the medical or evidentiary physical examination,
38upon approval of the victim. The victim has the right to have a
39sexual assault counselor, as defined in Section 1035.2 of the
P574 1Evidence Code, and a support person of the victim’s choosing
2present at any medical evidentiary or physical examination.
3(2) Prior to the commencement of any initial medical evidentiary
4or physical examination arising out of a sexual assault, a victim
5shall be notified orally or in writing by the medical provider that
6the victim has the right to have present a sexual assault counselor
7and at least one other support person of the victim’s choosing.
8(3) The hospital may verify with the law enforcement officer,
9or his or her agency, whether the local rape victim counseling
10center has been notified, upon the approval of the victim.
11(4) A support person may be excluded from a medical
12evidentiary or physical examination if the law enforcement officer
13or medical provider determines that the presence of that individual
14would be detrimental to the purpose of the examination.
Section 295.2 of the Penal Code is amended to read:
The DNA and forensic identification database andbegin delete data begin insert databankend insert and the Department of Justice DNA Laboratory
17bankend delete
18shall not be used as a source of genetic material for testing,
19research, or experiments, by any person, agency, or entity seeking
20to find a causal link between genetics and behavior or health.
Section 300.2 of the Penal Code, as added by Section
222 of Chapter 696 of the Statutes of 1998, is amended and
23renumbered to read:
The provisions of this chapter are severable. If any
26provision of this chapter or its application is held invalid, that
27invalidity shall not affect other provisions or applications that can
28be given effect without the invalid provision or application.
Section 308 of the Penal Code is amended to read:
(a) (1) Every person, firm, or corporation that knowingly
31or under circumstances in which it has knowledge, or should
32otherwise have grounds for knowledge, sells, gives, or in any way
33furnishes to another person who is under the age of 18 years any
34tobacco, cigarette, or cigarette papers, orbegin delete bluntsend deletebegin insert bluntend insert wraps, or
35any other preparation of tobacco, or any other instrument or
36paraphernalia that is designed for the smoking or ingestion of
37tobacco, products prepared from tobacco, or any controlled
38substance, is subject to either a criminal action for a misdemeanor
39or to a civil action brought by a city attorney, a county
counsel, or
40a district attorney, punishable by a fine of two hundred dollars
P575 1($200) for the first offense, five hundred dollars ($500) for the
2second offense, and one thousand dollars ($1,000) for the third
3offense.
4Notwithstanding Section 1464 or any other law, 25 percent of
5each civil and criminal penalty collected pursuant to this
6subdivision shall be paid to the office of the city attorney, county
7counsel, or district attorney, whoever is responsible for bringing
8the successful action, and 25 percent of each civil and criminal
9penalty collected pursuant to this subdivision shall be paid to the
10city or county for the administration and cost of the community
11service work component provided in subdivision (b).
12Proof that a defendant, or his or her employee or agent,
13demanded, was shown, and reasonably relied upon evidence of
14majority shall be defense to any action brought pursuant to this
15subdivision. Evidence of majority
of a person is a facsimile of or
16a reasonable likeness of a document issued by a federal, state,
17county, or municipal government, or subdivision or agency thereof,
18including, but not limited to, a motor vehicle operator’s license, a
19registration certificate issued under the federal Selective Service
20Act, or an identification card issued to a member of the Armed
21Forces.
22For purposes of this section, the person liable for selling or
23furnishing tobacco products to minors by a tobacco vending
24machine shall be the person authorizing the installation or
25placement of the tobacco vending machine upon premises he or
26she manages or otherwise controls and under circumstances in
27which he or she has knowledge, or should otherwise have grounds
28for knowledge, that the tobacco vending machine will be utilized
29by minors.
30(2) For purposes of this section, “blunt wraps” means cigar
31papers or cigar wrappers of all types
that are designed for smoking
32or ingestion of tobacco products and contain less than 50 percent
33tobacco.
34(b) Every person under the age of 18 years who purchases,
35receives, or possesses any tobacco, cigarette, or cigarette papers,
36or any other preparation of tobacco, or any other instrument or
37paraphernalia that is designed for the smoking of tobacco, products
38prepared from tobacco, or any controlled substance shall, upon
39conviction, be punished by a fine of seventy-five dollars ($75) or
4030 hours of community service work.
P576 1(c) Every person, firm, or corporation that sells, or deals in
2tobacco or any preparation thereof, shall post conspicuously and
3keep so posted in his, her, or their place of business at each point
4of purchase the notice required pursuant to subdivision (b) of
5Section 22952 of the Business and Professions Code, and any
6person failing to do so shall, upon
conviction, be punished by a
7fine of fifty dollars ($50) for the first offense, one hundred dollars
8($100) for the second offense, two hundred fifty dollars ($250) for
9the third offense, and five hundred dollars ($500) for the fourth
10offense and each subsequent violation of this provision, or by
11imprisonment in a county jail not exceeding 30 days.
12(d) For purposes of determining the liability of persons, firms,
13or corporations controlling franchises or business operations in
14multiple locations for the second and subsequent violations of this
15section, each individual franchise or business location shall be
16deemed a separate entity.
17(e) Notwithstanding subdivision (b), any person under 18 years
18of age who purchases, receives, or possesses any tobacco, cigarette,
19or cigarette papers, or any other preparation of tobacco, any other
20instrument or paraphernalia that is designed for the
smoking of
21tobacco, or products prepared from tobacco is immune from
22prosecution for that purchase, receipt, or possession while
23participating in either of the following:
24(1) An enforcement activity that complies with the guidelines
25adopted pursuant to subdivisions (c) and (d) of Section 22952 of
26the Business and Professions Code.
27(2) An activity conducted by the State Department of Public
28Health, a local health department, or a law enforcement agency
29for the purpose of determining or evaluating youth tobacco
30purchase rates.
31(f) It is the Legislature’s intent to regulate the subject matter of
32this section. As a result, a city, county, or city and county shall not
33adopt any ordinance or regulation inconsistent with this section.
Section 602 of the Penal Code is amended to read:
Except as provided in subdivisions (u), (v), and (x), and
36Section 602.8, every person who willfully commits a trespass by
37any of the following acts is guilty of a misdemeanor:
38(a) Cutting down, destroying, or injuring any kind of wood or
39timber standing or growing upon the lands of another.
P577 1(b) Carrying away any kind of wood or timber lying on those
2lands.
3(c) Maliciously injuring or severing from the freehold of another
4anything attached to it, or its produce.
5(d) Digging, taking, or carrying away from any lot situated
6within the limits of any incorporated city, without the license of
7the owner or
legal occupant, any earth, soil, or stone.
8(e) Digging, taking, or carrying away from land in any city or
9town laid down on the map or plan of the city, or otherwise
10recognized or established as a street, alley, avenue, or park, without
11the license of the proper authorities, any earth, soil, or stone.
12(f) Maliciously tearing down, damaging, mutilating, or
13destroying any sign, signboard, or notice placed upon, or affixed
14to, any property belonging to the state, or to any city, county, city
15and county,begin delete townend deletebegin insert town,end insert or village, or upon any property of any
16person, by the state or by an automobile association, which sign,
17signboard, or notice is intended to indicate or designate a road or
18a highway,
or is intended to direct travelers from one point to
19another, or relates to fires, fire control, or any other matter
20involving the protection of the property, or putting up, affixing,
21fastening, printing, or painting upon any property belonging to the
22state, or to any city, county, town, or village, or dedicated to the
23public, or upon any property of any person, without license from
24the owner, any notice, advertisement, or designation of, or any
25name for any commodity, whether for sale or otherwise, or any
26picture, sign, or device intended to call attention to it.
27(g) Entering upon any lands owned by any other person whereon
28oysters or other shellfish are planted or growing; or injuring,
29gathering, or carrying away any oysters or other shellfish planted,
30growing, or on any of those lands, whether covered by water or
31not, without the license of the owner or legal occupant; or
32damaging, destroying, or removing, or causing to be removed,
33damaged,
or destroyed, any stakes, marks, fences, or signs intended
34to designate the boundaries and limits of any of those lands.
35(h) (1) Entering upon lands or buildings owned by any other
36person without the license of the owner or legal occupant, where
37signs forbidding trespass are displayed, and whereon cattle, goats,
38pigs, sheep, fowl, or any other animal is being raised, bred, fed,
39or held for the purpose of food for human consumption; or injuring,
40gathering, or carrying away any animal being housed on any of
P578 1those lands, without the license of the owner or legal occupant; or
2damaging, destroying, or removing, or causing to be removed,
3damaged, or destroyed, any stakes, marks, fences, or signs intended
4to designate the boundaries and limits of any of those lands.
5(2) In order for there to be a violation of this subdivision, the
6trespass signs under paragraph (1)
shall be displayed at intervals
7not less than three per mile along all exterior boundaries and at all
8roads and trails entering the land.
9(3) This subdivision shall not be construed to preclude
10prosecution or punishment under any otherbegin delete provision ofend delete
law,
11including, but not limited to, grand theft or any provision that
12provides for a greater penalty or longer term of imprisonment.
13(i) Willfully opening, tearing down, or otherwise destroying
14any fence on the enclosed land of another, or opening any gate,
15bar, or fence of another and willfully leaving it open without the
16written permission of the owner, or maliciously tearing down,
17mutilating, or destroying any sign, signboard, or other notice
18forbidding shooting on private property.
19(j) Building fires upon any lands owned by another where signs
20forbidding trespass are displayed at intervals not greater than one
21mile along the exterior boundaries and at all roads and trails
22entering the lands, without first having obtained written permission
23from the owner of the lands or the owner’s agent, or the person in
24lawful possession.
25(k) Entering any lands, whether unenclosed or enclosed by
26fence, for the purpose of injuring any property or property rights
27or with the intention of interfering with, obstructing, or injuring
28any lawful business or occupation carried on by the owner of the
29land, the owner’s agent, orbegin delete byend delete the person in lawful possession.
30(l) Entering any lands under cultivation or enclosed by fence,
31belonging to, or occupied by, another, or entering upon uncultivated
32or unenclosed lands where signs forbidding trespass are displayed
33at intervals not less than three to the mile along all exterior
34boundaries and at all roads and trails entering the lands without
35the written permission of the owner of the land,begin delete orend delete the owner’s
36agent, orbegin delete ofend delete
the person in lawful possession, and any of the
37following:
38(1) Refusing or failing to leave the lands immediately upon
39being requested by the owner of the land, the owner’s agent, or by
40the person in lawful possession to leave the lands.
P579 1(2) Tearing down, mutilating, or destroying any sign, signboard,
2or notice forbidding trespass or hunting on the lands.
3(3) Removing, injuring, unlocking, or tampering with any lock
4on any gate on or leading into the lands.
5(4) Discharging any firearm.
6(m) Entering and occupying real property or structures of any
7kind without the consent of the owner, the owner’s agent, or the
8person in lawful possession.
9(n) Driving any vehicle, as defined in Section 670 of the Vehicle
10Code, upon real property belonging to, or lawfully occupied by,
11another and known not to be open to the general public, without
12the consent of the owner, the owner’s agent, or the person in lawful
13possession. This subdivisionbegin delete shallend deletebegin insert doesend insert not apply to any person
14described in Section 22350 of the Business and Professions Code
15who is making a lawful service of process, provided that upon
16exiting the vehicle, the person proceeds immediately to attempt
17the service of process, and leaves immediately upon completing
18the service of process or upon the request of the owner, the owner’s
19agent, or the person in lawful possession.
20(o) Refusing
or failing to leave land, real property, or structures
21belonging to or lawfully occupied by another and not open to the
22general public, upon being requested to leave by (1) a peace officer
23at the request of the owner, the owner’s agent, or the person in
24lawful possession, and upon being informed by the peace officer
25that he or she is acting at the request of the owner, the owner’s
26agent, or the person in lawful possession, or (2) the owner, the
27owner’s agent, or the person in lawful possession. The owner, the
28owner’s agent, or the person in lawful possession shall make a
29separate request to the peace officer on each occasion when the
30peace officer’s assistance in dealing with a trespass is requested.
31However, a single request for a peace officer’s assistance may be
32made to cover a limited period of time not to exceed 30 days and
33identified by specific dates, during which there is a fire hazard or
34the owner, owner’s agent, or person in lawful possession is absent
35from the premises or property. In addition, a
single request for a
36peace officer’s assistance may be made for a period not to exceed
3712 months when the premises or property is closed to the public
38and posted as being closed. The requestor shall inform the law
39enforcement agency to which the request was made when the
40assistance is no longer desired, before the period not exceeding
P580 112 months expires. The request for assistance shall expire upon
2transfer of ownership of the property or upon a change in the person
3in lawful possession. However, this subdivisionbegin delete shallend deletebegin insert doesend insert notbegin delete be begin insert applyend insert to persons engaged in lawful labor union activities
4applicableend delete
5which are permitted to be carried
out on the property by the
6Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations
7Act of 1975 (Part 3.5 (commencing with Section 1140) of Division
82 of the Labor Code) or by the federal National Labor Relations
9Act. For purposes of this section, land, real property, or structures
10owned or operated by any housing authority forbegin delete tenantsend deletebegin insert tenants,end insert
11 as definedbegin delete underend deletebegin insert
inend insert Section 34213.5 of the Health and Safetybegin delete Codeend delete
12begin insert Code,end insert constitutes property not open to the general public; however,
13this subdivision shall not apply to persons on the premises who
14are engaging in activities protected by the California or United
15States Constitution, or to persons who are on the premises at the
16request of a resident or management and who are not loitering or
17otherwise suspected of violating or actually violating any law or
18ordinance.
19(p) Entering upon any lands declared closed to entry as provided
20in Section 4256 of the Public Resources Code, if the closed areas
21begin delete shallend delete have been posted with notices declaring the closure,
at
22intervals not greater than one mile along the exterior boundaries
23or along roads and trails passing through the lands.
24(q) Refusing or failing to leave a public building of a public
25agency during those hours of the day or night when the building
26is regularly closed to the public upon being requested to do so by
27a regularly employed guard, watchperson, or custodian of the
28public agency owning or maintaining the building or property, if
29the surrounding circumstances would indicate to a reasonable
30person that the person has no apparent lawful business to pursue.
31(r) Knowingly skiing in an area or on a ski trailbegin delete whichend deletebegin insert thatend insert is
32closed to the public andbegin delete whichend deletebegin insert
thatend insert has signs posted indicating the
33closure.
34(s) Refusing or failing to leave a hotel or motel, where he or
35she has obtained accommodations and has refused to pay for those
36accommodations, upon request of the proprietor or manager, and
37the occupancy is exempt, pursuant to subdivision (b) of Section
381940 of the Civil Code, from Chapter 2 (commencing with Section
391940) of Title 5 of Part 4 of Division 3 of the Civil Code. For
40purposes of this subdivision, occupancy at a hotel or motel for a
P581 1continuous period of 30 days or less shall, in the absence of a
2written agreement to the contrary, or other written evidence of a
3periodic tenancy of indefinite duration, be exempt from Chapter
42 (commencing with Section 1940) of Title 5 of Part 4 of Division
53 of the Civil Code.
6(t) (1) Entering upon private property, including
contiguous
7land, real property, or structures thereon belonging to the same
8owner, whether or not generally open to the public, after having
9been informed by a peace officer at the request of the owner, the
10owner’s agent, or the person in lawful possession, and upon being
11informed by the peace officer that he or she is acting at the request
12of the owner, the owner’s agent, or the person in lawful possession,
13that the property is not open to the particular person; or refusing
14or failing to leave the property upon being asked to leave the
15property in the manner provided in this subdivision.
16(2) This subdivisionbegin delete shall applyend deletebegin insert appliesend insert only to a person who
17has been convicted of a crime committed upon the particular private
18property.
19(3) A single notification or request to the person as set forth
20above shall be valid and enforceable under this subdivision unless
21and until rescinded by the owner, the owner’s agent, or the person
22in lawful possession of the property.
23(4) Where the person has been convicted of a violent felony, as
24described in subdivision (c) of Section 667.5, this subdivisionbegin delete shall begin insert appliesend insert without time limitation. Where the person has been
25applyend delete
26convicted of any other felony, this subdivisionbegin delete shall applyend deletebegin insert appliesend insert
27 for no
more than five years from the date of conviction. Where
28the person has been convicted of a misdemeanor, this subdivision
29begin delete shall applyend deletebegin insert appliesend insert for no more than two years from the date of
30conviction. Where the person was convicted for an infraction
31pursuant to Section 490.1, this subdivisionbegin delete shall applyend deletebegin insert appliesend insert for
32no more than one year from the date of conviction. This subdivision
33begin delete shallend deletebegin insert doesend insert not apply to convictions for any other infraction.
34(u) (1) Knowingly entering, by an unauthorized person, upon
35any airport operations area, passenger vessel terminal, or public
36transit facility if the area has been posted with notices restricting
37access to authorized personnel only and the postings occur not
38greater than every 150 feet along the exterior boundary, to the
39extent, in the case of a passenger vessel terminal, as defined in
40subparagraph (B) of paragraph (3), that the exterior boundary
P582 1extends shoreside. To the extent that the exterior boundary of a
2passenger vessel terminal operations area extends waterside, this
3prohibitionbegin delete shall applyend deletebegin insert appliesend insert if notices have been posted in a
4manner consistent with the requirements for the shoreside exterior
5boundary, or in any other manner
approved by the captain of the
6port.
7(2) begin deleteAny end deletebegin insertA end insertperson convicted of a violation of paragraph (1) shall
8be punished as follows:
9(A) By a fine not exceeding one hundred dollars ($100).
10(B) By imprisonment in a county jail not exceeding six months,
11or by a fine not exceeding one thousand dollars ($1,000), or by
12both that fine and imprisonment, if the person refuses to leave the
13airport or passenger vessel terminal after being requested to leave
14by a peace officer or authorized personnel.
15(C) By imprisonment in a county jail not exceeding six months,
16or by a fine not
exceeding one thousand dollars ($1,000), or by
17both that fine and imprisonment, for a second or subsequent
18offense.
19(3) As used in this subdivision, the following definitions shall
20control:
21(A) “Airport operations area” means that part of the airport used
22by aircraft for landing, taking off, surface maneuvering, loading
23and unloading, refueling, parking, or maintenance, where aircraft
24support vehicles and facilities exist, and which is not for public
25use or public vehicular traffic.
26(B) “Passenger vessel terminal” means only that portion of a
27harbor or port facility, as described in Section 105.105(a)(2) of
28Title 33 of the Code of Federal Regulations, with a secured area
29that regularly serves scheduled commuter or passenger operations.
30For the purposes of this section, “passenger vessel terminal” does
31not include any
area designated a public access area pursuant to
32Section 105.106 of Title 33 of the Code of Federal Regulations.
33(C) “Public transit facility” has the same meaning as specified
34in Section 171.7.
35(D) “Authorized personnel” means any person who has a valid
36airport identification card issued by the airport operator or has a
37valid airline identification card recognized by the airport operator,
38or any person not in possession of an airport or airline identification
39card who is being escorted for legitimate purposes by a person
40with an airport or airline identification card. “Authorized
P583 1personnel” also means any person who has a valid port
2identification card issued by the harbor operator, or who has a
3valid company identification card issued by a commercial maritime
4enterprise recognized by the harbor operator, or any other person
5who is being escorted for legitimate purposes by a
person with a
6valid port or qualifying company identification card. “Authorized
7personnel” also means any person who has a valid public transit
8employee identification.
9(E) “Airport” means any facility whose function is to support
10commercial aviation.
11(v) (1) Except as permitted by federal law, intentionally
12avoiding submission to the screening and inspection of one’s
13person and accessible property in accordance with the procedures
14being applied to control access when entering or reentering a sterile
15area of an airport, passenger vessel terminal, as defined in
16subdivision (u), or public transit facility, as defined in Section
17begin delete 171.5,end deletebegin insert 171.7,end insert if the sterile area is posted
with a statement providing
18reasonable notice that prosecution may result from a trespass
19described in this subdivision, is a violation of this subdivision,
20punishable by a fine of not more than five hundred dollars ($500)
21for the first offense. A second and subsequent violation is a
22misdemeanor, punishable by imprisonment in a county jail for a
23period of not more than one year, or by a fine not to exceed one
24thousand dollars ($1,000), or by both that fine and imprisonment.
25(2) Notwithstanding paragraph (1), if a first violation of this
26subdivision is responsible for the evacuation of an airport terminal,
27passenger vessel terminal, or public transit facility and is
28responsible in any part for delays or cancellations of scheduled
29flights or departures, it is punishable by imprisonment of not more
30than one year in a county jail.
31(w) Refusing or failing to leave a battered women’s
shelter at
32any time after being requested to leave by a managing authority
33of the shelter.
34(1) A person who is convicted of violating this subdivision shall
35be punished by imprisonment in a county jail for not more than
36one year.
37(2) The court may order a defendant who is convicted of
38violating this subdivision to make restitution to a battered woman
39in an amount equal to the relocation expenses of the battered
P584 1woman and her children if those expenses are incurred as a result
2of trespass by the defendant at a battered women’s shelter.
3(x) (1) Knowingly entering or remaining in a neonatal unit,
4maternity ward, or birthing center located in a hospital or clinic
5without lawful business to pursue therein, if the area has been
6posted so as to give reasonable notice restricting access to those
7with
lawful business to pursue therein and the surrounding
8circumstances would indicate to a reasonable person that he or she
9has no lawful business to pursue therein. Reasonable notice is that
10which would give actual notice to a reasonable person, and is
11posted, at a minimum, at each entrance into the area.
12(2) begin deleteAny end deletebegin insertA end insertperson convicted of a violation of paragraph (1) shall
13be punished as follows:
14(A) As an infraction, by a fine not exceeding one hundred dollars
15($100).
16(B) By imprisonment in a county jail not exceeding one year,
17or by a fine not exceeding one thousand dollars ($1,000), or by
18both that fine and imprisonment, if the
person refuses to leave the
19posted area after being requested to leave by a peace officer or
20other authorized person.
21(C) By imprisonment in a county jail not exceeding one year,
22or by a fine not exceeding two thousand dollars ($2,000), or by
23both that fine and imprisonment, for a second or subsequent
24offense.
25(D) If probation is granted or the execution or imposition of
26sentencing is suspended for any person convicted under this
27subdivision, it shall be a condition of probation that the person
28participate in counseling, as designated by the court, unless the
29court finds good cause not to impose this requirement. The court
30shall require the person to pay for this counseling, if ordered, unless
31good cause not to pay is shown.
32(y) Except as permitted by federal law, intentionally avoiding
33submission to the screening
and inspection of one’s person and
34accessible property in accordance with the procedures being applied
35to control access when entering or reentering a courthouse or a
36city, county, city and county, or state building if entrances to the
37courthouse or the city, county, city and county, or state building
38have been posted with a statement providing reasonable notice
39that prosecution may result from a trespass described in this
40subdivision.
Section 626.9 of the Penal Code is amended to read:
(a) This section shall be known, and may be cited, as
3the Gun-Free School Zone Act of 1995.
4(b) begin deleteAny end deletebegin insertA end insertperson who possesses a firearm in a place that the
5person knows, or reasonably should know, is a school zone, as
6defined in paragraph (1) of subdivision (e), unless it is with the
7written permission of the school district superintendent, his or her
8designee, or equivalent school authority, shall be punished as
9specified in subdivision (f).
10(c) Subdivision (b) does not apply to the possession of a firearm
11under any
of the following circumstances:
12(1) Within a place of residence or place of business or on private
13property, if the place of residence, place of business, or private
14property is not part of the school grounds and the possession of
15the firearm is otherwise lawful.
16(2) When the firearm is an unloaded pistol, revolver, or other
17firearm capable of being concealed on the person and is in a locked
18container or within the locked trunk of a motor vehicle.
19This section does not prohibit or limit the otherwise lawful
20transportation of any other firearm, other than a pistol, revolver,
21or other firearm capable of being concealed on the person, in
22accordance with state law.
23(3) When the person possessing the firearm reasonably believes
24that he or she is in grave danger because of
circumstances forming
25the basis of a current restraining order issued by a court against
26another person or persons who has or have been found to pose a
27threat to his or her life or safety. This subdivision may not apply
28when the circumstances involve a mutual restraining order issued
29pursuant to Division 10 (commencing with Section 6200) of the
30Family Code absent a factual finding of a specific threat to the
31person’s life or safety. Upon a trial for violating subdivision (b),
32the trier of a fact shall determine whether the defendant was acting
33out of a reasonable belief that he or she was in grave danger.
34(4) When the person is exempt from the prohibition against
35carrying a concealed firearm pursuant to Section 25615, 25625,
3625630, or 25645.
37(d) Except as provided in subdivision (b), it shall be unlawful
38for any person, with reckless disregard for the safety of another,
39to
discharge, or attempt to discharge, a firearm in a school zone,
40as defined in paragraph (1) of subdivision (e).
P586 1The prohibition contained in this subdivision does not apply to
2the discharge of a firearm to the extent that the conditions of
3paragraph (1) of subdivision (c) are satisfied.
4(e) As used in this section, the following definitions shall apply:
5(1) “School zone” means an area in, or on the grounds of, a
6public or private school providing instruction in kindergarten or
7grades 1 to 12, inclusive, or within a distance of 1,000 feet from
8the grounds of the public or private school.
9(2) “Firearm” has the same meaning as that term is given in
10subdivisions (a) to (d), inclusive, of Section 16520.
11(3) “Locked
container” has the same meaning as that term is
12given in Section 16850.
13(4) “Concealed firearm” has the same meaning as that term is
14given in Sections 25400 and 25610.
15(f) (1) Any person who violates subdivision (b) by possessing
16a firearm in, or on the grounds of, a public or private school
17providing instruction in kindergarten or grades 1 to 12, inclusive,
18shall be punished by imprisonment pursuant to subdivision (h) of
19Section 1170 for two, three, or five years.
20(2) Any person who violates subdivision (b) by possessing a
21firearm within a distance of 1,000 feet from the grounds of a public
22or private school providing instruction in kindergarten or grades
231 to 12, inclusive, shall be punished as follows:
24(A) By imprisonment
pursuant to subdivision (h) of Section
251170 for two, three, or five years, if any of the following
26circumstances apply:
27(i) If the person previously has been convicted of any felony,
28or of any crime made punishable by any provision listed in Section
2916580.
30(ii) If the person is within a class of persons prohibited from
31possessing or acquiring a firearm pursuant to Chapter 2
32(commencing with Section 29800) or Chapter 3 (commencing with
33Section 29900) of Division 9 of Title 4 of Part 6 of this code or
34Section 8100 or 8103 of the Welfare and Institutions Code.
35(iii) If the firearm is any pistol, revolver, or other firearm capable
36of being concealed upon the person and the offense is punished as
37a felony pursuant to Section 25400.
38(B) By imprisonment in a
county jail for not more than one year
39or by imprisonment pursuant to subdivision (h) of Section 1170
P587 1for two, three, or five years, in all cases other than those specified
2in subparagraph (A).
3(3) Any person who violates subdivision (d) shall be punished
4by imprisonment pursuant to subdivision (h) of Section 1170 for
5three, five, or seven years.
6(g) (1) Every person convicted under this section for a
7misdemeanor violation of subdivision (b) who has been convicted
8previously of a misdemeanor offense enumerated in Section 23515
9shall be punished by imprisonment in a county jail for not less
10than three months, or if probation is granted or if the execution or
11imposition of sentence is suspended, it shall be a condition thereof
12that he or she be imprisoned in a county jail for not less than three
13months.
14(2) Every person convicted under this section of a felony
15violation of subdivision (b) or (d) who has been convicted
16previously of a misdemeanor offense enumerated in Section 23515,
17if probation is granted or if the execution of sentence is suspended,
18it shall be a condition thereof that he or she be imprisoned in a
19county jail for not less than three months.
20(3) Every person convicted under this section for a felony
21violation of subdivision (b) or (d) who has been convicted
22previously of any felony, or of any crime made punishable by any
23provision listed in Section 16580, if probation is granted or if the
24execution or imposition of sentence is suspended, it shall be a
25condition thereof that he or she be imprisoned in a county jail for
26not less than three months.
27(4) The court shall apply the three-month minimum sentence
28specified in this subdivision, except in
unusual cases where the
29interests of justice would best be served by granting probation or
30suspending the execution or imposition of sentence without the
31minimum imprisonment required in this subdivision or by granting
32probation or suspending the execution or imposition of sentence
33with conditions other than those set forth in this subdivision, in
34which case the court shall specify on the record and shall enter on
35the minutes the circumstances indicating that the interests of justice
36would best be served by this disposition.
37(h) Notwithstanding Section 25605,begin delete anyend deletebegin insert aend insert person who brings
38or possesses a loaded firearm upon the grounds of a campus of, or
39buildings owned or operated for student housing, teaching,
40research, or administration by, a public or private
university or
P588 1college, that are contiguous or are clearly marked university
2property, unless it is with the written permission of the university
3or college president, his or her designee, or equivalent university
4or college authority, shall be punished by imprisonment pursuant
5to subdivision (h) of Section 1170 for two, three, or four years.
6Notwithstanding subdivision (k), a university or college shall post
7a prominent notice at primary entrances on noncontiguous property
8stating that firearms are prohibited on that property pursuant to
9this subdivision.
10(i) Notwithstanding Section 25605,begin delete anyend deletebegin insert aend insert person who brings or
11possesses a firearm upon the grounds of a campus of, or buildings
12owned or operated for student housing, teaching, research, or
13administration
by, a public or private university or college, that
14are contiguous or are clearly marked university property, unless
15it is with the written permission of the university or college
16president, his or her designee, or equivalent university or college
17authority, shall be punished by imprisonment pursuant to
18subdivision (h) of Section 1170 for one, two, or three years.
19Notwithstanding subdivision (k), a university or college shall post
20a prominent notice at primary entrances on noncontiguous property
21stating that firearms are prohibited on that property pursuant to
22this subdivision.
23(j) For purposes of this section, a firearm shall be deemed to be
24loaded when there is an unexpended cartridge or shell, consisting
25of a case that holds a charge of powder and a bullet or shot, in, or
26attached in any manner to, the firearm, including, but not limited
27to, in the firing chamber, magazine, or clip thereof attached to the
28firearm. A muzzle-loader firearm
shall be deemed to be loaded
29when it is capped or primed and has a powder charge and ball or
30shot in the barrel or cylinder.
31(k) This section does not require that notice be posted regarding
32the proscribed conduct.
33(l) This section does not apply to a duly appointed peace officer
34as defined in Chapter 4.5 (commencing with Section 830) of Title
353 of Part 2, a full-time paid peace officer of another state or the
36federal government who is carrying out official duties while in
37California, any person summoned by any of these officers to assist
38in making arrests or preserving the peace while he or she is actually
39engaged in assisting the officer, a member of the military forces
40of this state or of the United States who is engaged in the
P589 1performance of his or her duties, a person holding a valid license
2to carry the firearm pursuant to Chapter 4 (commencing with
3Section 26150) of
Division 5 of Title 4 of Part 6, or an armored
4vehicle guard, engaged in the performance of his or her duties, as
5defined in subdivisionbegin delete (e)end deletebegin insert (d)end insert of Sectionbegin delete 7521end deletebegin insert 7582.1end insert of the
6Business and Professions Code.
7(m) This section does not apply to a security guard authorized
8to carry a loaded firearm pursuant to Article 4 (commencing with
9Section 26000) of Chapter 3 of Division 5 of Title 4 of Part 6.
10(n) This section does not apply to an existing shooting range at
11a public or private school or university or
college campus.
12(o) This section does not apply to an honorably retired peace
13officer authorized to carry a concealed or loaded firearm pursuant
14to any of the following:
15(1) Article 2 (commencing with Section 25450) of Chapter 2
16of Division 5 of Title 4 of Part 6.
17(2) Section 25650.
18(3) Sections 25900 to 25910, inclusive.
19(4) Section 26020.
Section 814 of the Penal Code is amended to read:
A warrant of arrest issued under Section 813 may be in
22substantially the following form:
23
24County of ____
25The people of the State of California to any peace officer of said
26State:
27Complaint on oath having this day been laid before me that the
28crime of ____ (designating it generally) has been committed and
29accusing ____ (naming defendant) thereof, you are therefore
30commanded forthwith to arrest the above named defendant and
31bring himbegin insert or herend insert before me at ____ (naming the place), or in case
32of my absence or inability to act, before the
nearest or most
33accessible magistrate in this county.
|
Dated at (place) this ______ day of ______, 20__. |
|
|
Section 830.14 of the Penal Code is amended to
2read:
(a) A local or regional transit agency or a joint powers
4agency operating rail service identified in an implementation
5program adopted pursuant to Article 10 (commencing with Section
6130450) of Chapter 4 of Division 12 of the Public Utilities Code
7may authorize by contract designated persons as conductors
8performing fare inspection duties who are employed by a railroad
9corporation that operates public rail commuter transit services for
10that agency to act as its agent in the enforcement of subdivisions
11(a) to (d), inclusive, of Section 640 relating to the operation of the
12rail service if they complete the training requirement specified in
13this section.
14(b) The governing board of the Altamont Commuter Express
15Authority, a joint powers agency duly formed pursuant to
Article
161 (commencing with Section 6500) of Chapter 5 of Division 7 of
17Title 1 of the Government Code, by and between the Alameda
18begin insert Countyend insert Congestion Management Agency, the Santa Clarabegin delete County begin insert Valley Transportation Authority,end insert and the San
19Transit District,end delete
20Joaquin Regional Rail Commission, may contract with designated
21persons to act as its agents in the enforcement of subdivisions (a)
22to (d), inclusive, of Section 640 relating to the operation of a public
23transportation system if these persons complete the training
24requirement specified in this section.
25(c) The governing board of the Peninsula Corridor Joint Powers
26Board, a joint powers agency duly
formed pursuant to Article 1
27(commencing with Section 6500) of Chapter 5 of Division 7 of
28Title 1 of the Government Code, by and between the San Mateo
29County Transit District, the Santa Clarabegin delete County Transit District,end delete
30begin insert Valley Transportation Authority,end insert and the City and County of San
31Francisco, may appoint designated persons to act as its agents in
32the enforcement of subdivisions (a) to (d), inclusive, of Section
33640 relating to the operation of a public transportation system if
34these persons complete the training requirement specified in this
35section.
36(d) The governing board of Foothill Transit, a joint powers
37agency duly formed pursuant to Article 1 (commencing with
38Section 6500) of Chapter 5 of Division 7 of Title 1 of the
39Government Code, by and between
the Cities of Arcadia, Azusa,
40Baldwin Park, Bradbury, Claremont, Covina, Diamond Bar, Duarte,
P591 1El Monte, Glendora, Industry, Irwindale, La Habra Heights, La
2Puente, La Verne, Monrovia, Pomona, San Dimas, South El Monte,
3Temple City, Walnut, West Covina, and the County of Los
4Angeles, may resolve to contract with designated persons to act
5as its agents in the enforcement of subdivisions (a) to (d), inclusive,
6of Section 640 relating to the operation of a public transportation
7system if these persons complete the training requirement specified
8in this section.
9(e) The governing board of the Sacramento Regional Transit
10District, a transit district duly formed pursuant to Part 14
11(commencing with Section 102000) of Division 10 of the Public
12Utilities Code, may designate persons regularly employed by the
13district as inspectors or supervisors to enforce subdivisions (a) to
14(d), inclusive, of Section 640, relating to the operation of a public
15
transportation system, and any ordinance adopted by the district
16pursuant to subdivision (a) of Section 102122 of the Public Utilities
17Code, if these persons complete the training requirement specified
18in this section.
19(f) The governing board of a transit district, as defined in
20subdivision (b) of Section 99170 of the Public Utilities Code, may
21designate employees, except for union-represented employees
22employed to drive revenue-generating transit vehicles, or security
23officers contracted by the transit district, to enforce subdivisions
24(a) to (d), inclusive, of Section 640, and Section 640.5, and
25violations of Section 99170 of the Public Utilities Code.
26(g) Persons authorized pursuant to this section to enforce
27subdivisions (a) to (d), inclusive, of Section 640, or Section 640.5,
28or Section 99170 of the Public Utilities Code, shall complete a
29specialized fare compliance course
that shall be provided by the
30authorizing agency. This training course shall include, but not be
31limited to, the following topics:
32(1) An overview of barrier-free fare inspection concepts.
33(2) The scope and limitations of inspector authority.
34(3) Familiarization with the elements of the infractions
35enumerated in subdivisions (a) to (d), inclusive, of Section 640,
36and, as applicable, the crimes enumerated in Section 640.5, and
37Section 99170 of the Public Utilities Code.
38(4) Techniques for conducting fare checks, including inspection
39procedures, demeanor, and contacting violators.
40(5) Citation issuance and court appearances.
P592 1(6) Fare media recognition.
2(7) Handling argumentative violators and diffusing conflict.
3(8) The mechanics of law enforcement support and interacting
4with law enforcement for effective incident resolution.
5(h) Persons described in this section are public officers, not
6peace officers, have no authority to carry firearms or any other
7weapon while performing the duties authorized in this section, and
8may not exercise the powers of arrest of a peace officer while
9performing the duties authorized in this section. These persons
10may be authorized by the agencies specified in this section to issue
11citations involving infractions relating to the operation of the rail
12service specified in this section.
13(i) begin deleteNothing in this end deletebegin insertThis
end insertsectionbegin delete shallend deletebegin insert does notend insert affect the
14retirement or disability benefits provided to employees described
15in this section or be in violation of any collective bargaining
16agreement between a labor organization and a railroad corporation.
17(j) Notwithstanding any other provision of this section, the
18primary responsibility of a conductor of a commuter passenger
19train shall be functions related to safe train operation.
The heading of Chapter 5a (commencing with
21Section 852) of Title 3 of Part 2 of the Penal Code is amended and
22renumbered to read:
23
Section 1191.15 of the Penal Code is amended to
27read:
(a) The court may permit the victim of any crime,
29his or her parent or guardian if the victim is a minor, or the next
30of kin of the victim if the victim has died, to file with the court a
31written, audiotaped, or videotaped statement, or statement stored
32on abegin delete CD Rom,end deletebegin insert CD-ROM,end insert DVD, or any other recording medium
33acceptable to the court, expressing his or her views concerning the
34crime, the person responsible, and the need for restitution, in lieu
35of or in addition to the person personally appearing at the time of
36judgment and sentence. The court shall consider the statement
37filed with the court prior to imposing judgment and sentence.
38Whenever an audio or video statement or statement stored on a
39begin delete CD Rom,end deletebegin insert CD-ROM,end insert DVD, or other medium is filed with the court,
40a written transcript of the statement shall also be provided by the
P593 1person filing the statement, and shall be made available as a public
2record of the court after the judgment and sentence have been
3imposed.
4(b) Whenever a written, audio, or video statement or statement
5stored on abegin delete CD Rom,end deletebegin insert CD-ROM,end insert DVD, or other medium is filed
6with the court, it shall remain sealed until the time set for
7imposition of
judgment and sentence except that the court, the
8probation officer, and counsel for the parties may view and listen
9to the statement not more than two court days prior to the date set
10for imposition of judgment and sentence.
11(c) begin deleteNo person may, and no court shall, end deletebegin insertA person or a court shall
12not end insertpermit any person to duplicate, copy, or reproduce bybegin delete anyend delete
13 audio or visual meansbegin delete anyend deletebegin insert aend insert statement submitted to the court under
14the provisions of this section.
15(d) Nothing in this section shall be construed to prohibit the
16prosecutor from representing to the court the views of the victim,
17his or her parent or guardian, the next of kin, or the California
18Victim Compensation and Government Claims Board.
19(e) In the event the court permits an audio or video statement
20or statement stored on abegin delete CD Rom,end deletebegin insert
CD-ROM,end insert DVD, or other
21medium to be filed, the court shall not be responsible for providing
22any equipment or resources needed to assist the victim in preparing
23the statement.
Section 2905 of the Penal Code is amended to read:
(a) For purposes of this section, a “youth offender” is
26an individual committed to the Department of Corrections and
27Rehabilitation who is under 22 years of age.
28(b) (1) The department shall conduct a youth offenderbegin delete Institutionend delete
29begin insert Institutionalend insert Classification Committee review at reception to
30provide special classification consideration for every youth
31offender. The youth offender Institutional Classification Committee
32shall consist of the staff required by department regulations at any
33Institutional Classification Committee, however at least one
34member shall
be a department staff member specially trained in
35conducting the reviews. Training shall include, but not be limited
36to, adolescent and young adult development and evidence-based
37interviewing processes employing positive and motivational
38techniques.
39(2) The purpose of the youth offender Institutional Classification
40Committee review is to meet with the youth offender and assess
P594 1the readiness of a youth offender for a lower security level or
2placement permitting increased access to programs and to
3encourage the youth offender to commit to positive change and
4self-improvement.
5(c) A youth offender shall be considered for placement at a
6lower security level than corresponds with his or her classification
7score or placement in a facility that permits increased access to
8programs based on the Institutional Classification Committee
9review and factors including, but not limited to, the
following:
10(1) Recent in-custody behavior while housed in juvenile or adult
11facilities.
12(2) Demonstrated efforts of progress toward self-improvement
13in juvenile or adult facilities.
14(3) Family or community ties supportive of rehabilitation.
15(4) Evidence of commitment to working toward
16self-improvement with a goal of being a law-abiding member of
17society upon release.
18(d) If the department determines, based on the review described
19in subdivisions (b) andbegin delete (c)end deletebegin insert (c),end insert that the youth offender may be
20
appropriately placed at a lower security level, the department shall
21transfer the youth offender to a lower security level facility. If the
22youth offender is denied a lower security level, then he or she shall
23be considered for placement in a facility that permits increased
24access to programs. If the department determines a youth offender
25may appropriately be placed in a facility permitting increased
26access to programs, the youth offender shall be transferred to such
27a facility.
28(e) If the youth offender demonstrates he or she is a safety risk
29to inmates, staff, or the public, and does not otherwise demonstrate
30a commitment to rehabilitation, the youth offender shall be
31reclassified and placed at a security level that is consistent with
32department regulations and procedures.
33(f) A youth offender who at his or her initialbegin delete Youth Offenderend delete
34begin insert
youth offenderend insert Institutional Classification Committee review is
35denied a lower security level than corresponds with his or her
36placement score or did not qualify forbegin insert aend insert
placement permitting
37increased access to programs due to previous incarceration history
38and was placed in the highest security level shall nevertheless be
39eligible to have his or her placement reconsidered pursuant to
40subdivisions (b) to (d), inclusive, at his or her annual review until
P595 1reaching 25 years of age. If at an annual review it is determined
2that the youth offender has had no serious rule violations for one
3year, the department shall consider whether the youth would benefit
4from placement in a lower level facility or placement permitting
5increased access to programs.
6(g) The department shall review and, as necessary, revise
7existing regulations and adopt new regulations regarding
8classification determinations made pursuant to this section, and
9provide for training for staff.
10(h) This section shall become operative on July 1, 2015.
Section 3016 of the Penal Code is amended to read:
(a) The Secretary of the Department of Corrections and
13Rehabilitation shall establish the Case Management Reentry Pilot
14Program for offenders under the jurisdiction of the department
15who have been sentenced to a term of imprisonment under Section
161170 and are likely to benefit from a case management reentry
17strategy designed to address homelessness, joblessness, mental
18disorders, and developmental disabilities among offenders
19transitioning from prison into the community. The purpose of the
20pilot program is to implement promising and evidence-based
21practices and strategies that promote improved public safety
22outcomes for offenders reentering society after serving a term in
23state prison and while released to parole.
24(b) The program shall be initiated in at least three
counties over
25three years, supported by department employees focusing primarily
26on case management services for eligible parolees selected for the
27pilot program. Department employees shall be experienced or
28trained to work as social workers with a parole population.
29Selection of a parolee for participation in the pilot program does
30not guarantee the availability of services.
31(c) Case management social workers shall assist offenders on
32parole who are assigned to the program in managing basic needs,
33including housing, job training and placement, medical and mental
34health care, and any additional programming or responsibilities
35attendant to the terms of the offender’s reentry requirements. Case
36management social workers also shall work closely with offenders
37to prepare, monitor, revise, and fulfill individualized offender
38reentry plans consistent with this section during the term of the
39program.
P596 1(d) Individualized offender reentry plans shall focus on
2connecting offenders to services for which the offender is eligible
3under existing federal, state, and local rules.
4(e) Case management services shall be prioritized for offenders
5identified as potentially benefiting from assistance with the
6following:
7(1) Food, including the immediate need and long-term planning
8for obtaining food.
9(2) Clothing, including the immediate need to obtain appropriate
10clothing.
11(3) Shelter, including obtaining housing consistent with the
12goals of the most independent, least restrictive and potentially
13durable housing in the local community and that are feasible for
14the circumstances of each reentering offender.
15(4) Benefits, including, but not limited to, the California Work
16Opportunity and Responsibility to Kids program, general
17assistance, benefits administered by the federal Social Security
18Administration, Medi-Cal, and veterans benefits.
19(5) Health services, including assisting parolee clients with
20accessing community mental health, medical, and dental treatment.
21(6) Substance abuse services, including assisting parolee clients
22with obtaining community substance abuse treatment or related
2312-step program information and locations.
24(7) Income, including developing and implementing a feasible
25plan to obtain an income and employment reflecting the highest
26level of work appropriate for a reentering offender’s abilities and
27experience.
28(8) Identification cards, including assisting reentering offenders
29with obtaining state identification cards.
30(9) Life skills, including assisting with the development of skills
31concerning money management, job interviewing, resume writing,
32and activities of daily living.
33(10) Activities, including working with reentering offenders in
34choosing and engaging in suitable and productive activities.
35(11) Support systems, including working with reentering
36offenders on developing a support system, which may consist of
37prosocial friends, family, and community groups and activities,
38such as religious activities, recovery groups, and other social
39events.
P597 1(12) Academic and vocational programs, including
assisting
2reentering offenders in developing and implementing a realistic
3plan to achieve an academic education, or vocational training, or
4both.
5(13) Discharge planning, including developing postparole plans
6to sustain parolees’ achievements and goals tobegin delete insureend deletebegin insert ensureend insert
7 long-term community success.
8(f) The department shall contract for an evaluation of the pilot
9program that will assess its effectiveness in reducing recidivism
10among offenders transitioning from prison into the community.
11(g) The department shall submit a final report of the findings
12from its evaluation of the pilot program to the Legislature and the
13Governor no
later than three years after the enactment of Assembly
14Bill 1457 or Senate Bill 851 of the 2013−14 Regular Session. The
15report shall be submitted in compliance with Section 9795 of the
16Government Code.
17(h) Implementation of this article is contingent on the availability
18of funds and the pilot program may be limited in scope or duration
19based on the availability of funds.
Section 3043 of the Penal Code is amended to read:
(a) (1) Upon request to the Department of Corrections
22and Rehabilitation and verification of the identity of the requester,
23notice of any hearing to review or consider the parole suitability
24or the setting of a parole date for any prisoner in a state prison
25shall be given by telephone, certified mail, regular mail, or
26electronic mail, using the method of communication selected by
27the requesting party, if that method is available, by the Board of
28Parole Hearings at least 90 days before the hearing to any victim
29of any crime committed by the prisoner, or to the next of kin of
30the victim if the victim has died, to include the commitment crimes,
31determinate term commitment crimes for which the prisoner has
32been paroled, and any other felony crimes or crimes against the
33person for which the prisoner has been
convicted. The requesting
34party shall keep the board apprised of his or her current contact
35information in order to receive the notice.
36(2) No later than 30 days prior to the date selected for the
37hearing, any person, other than the victim, entitled to attend the
38hearing shall inform the board of his or her intention to attend the
39hearing and the name and identifying information of any other
P598 1person entitled to attend the hearing who will accompany him or
2her.
3(3) No later than 14 days prior to the date selected for the
4hearing, the board shall notify every person entitled to attend the
5hearing confirming the date, time, and place of the hearing.
6(b) (1) The victim, next of kin, members of the victim’s family,
7and two representatives designated as provided in paragraph (2)
8of this subdivision
have the right to appear, personally or by
9counsel, at the hearing and to adequately and reasonably express
10his, her, or their views concerning the prisoner and the case,
11including, but not limitedbegin delete toend deletebegin insert to,end insert the commitment crimes,
12determinate term commitment crimes for which the prisoner has
13been paroled, any other felony crimes or crimes against the person
14for which the prisoner has been convicted, the effect of the
15enumerated crimes on the victim and the family of the victim, the
16person responsible for these enumerated crimes, and the suitability
17of the prisoner for parole.
18(2) begin deleteAny end deletebegin insertA end insertstatement
provided by a representative designated
19by the victim or next of kin may cover any subject about which
20the victim or next of kin has the right to bebegin delete heardend deletebegin insert
heard,end insert
including
21any recommendation regarding the granting of parole. The
22representatives shall be designated by the victim or, in the event
23that the victim is deceased or incapacitated, by the next of kin.
24They shall be designated in writing for the particular hearing prior
25to the hearing.
26(c) A representative designated by the victim or the victim’s
27next of kin for purposes of this section may bebegin delete anyend deletebegin insert anend insert adult person
28selected by the victim or the family of the victim. The board shall
29permit a representative designated by the victim or the victim’s
30next of kin to attend a particular hearing, to provide testimony at
31a hearing, and to submit a statement to be included in the hearing
32as provided in Section 3043.2, even though the victim, next of kin,
33
or a member of the victim’s immediate family is present at the
34hearing, and even though the victim, next of kin, or a member of
35the victim’s immediate family has submitted a statement as
36described in Section 3043.2.
37(d) The board, in deciding whether to release the person on
38parole, shall consider the entire and uninterrupted statements of
39the victim or victims, next of kin, immediate family members of
40the victim, and the designated representatives of the victim or next
P599 1of kin, if applicable, made pursuant to this section and shall include
2in its report a statement whether the person would pose a threat to
3public safety if released on parole.
4(e) In those cases where there are more than two immediate
5family members of the victim who wish to attend any hearing
6covered in this section, the board shall allow attendance of
7additional immediate family members to include the following:
8
spouse, children, parents, siblings, grandchildren, and grandparents.
Section 3063.1 of the Penal Code is amended to
10read:
(a) Notwithstanding any other provision of law, and
12except as provided in subdivision (d), parolebegin delete mayend deletebegin insert shallend insert not be
13suspended or revoked for commission of a nonviolent drug
14possession offense or for violating any drug-related condition of
15parole.
16As an additional condition of parole for all such offenses or
17violations, the Parole Authority shall require participation in and
18completion of an appropriate drug treatment program. Vocational
19training, family counseling and literacy training may be imposed
20as additional parole conditions.
21The Parole Authority may require any person on parole who
22commits a nonviolent drug possession offense or violates any
23drug-related condition of parole, and who is reasonably able to do
24so, to contribute to the cost of his or her own placement in a drug
25treatment program.
26(b) Subdivision (a) does not apply to:
27(1) Any parolee who has been convicted of one or more serious
28or violent felonies in violation of subdivision (c) of Section 667.5
29or Section 1192.7.
30(2) begin deleteAny end deletebegin insertA end insertparolee who, while on parole, commits one or more
31nonviolent drug possession offenses and is found to have
32concurrently
committed a misdemeanor not related to the use of
33drugs or any felony.
34(3) begin deleteAny end deletebegin insertA end insertparolee who refuses drug treatment as a condition of
35parole.
36(c) Within seven days of a finding that the parolee has either
37committed a nonviolent drug possession offense or violated any
38drug-related condition of parole, the Department of Corrections
39and Rehabilitation, Division of Adult Parole Operations shall notify
40the treatment provider designated to provide drug treatment under
P600 1subdivision (a). Within 30 days thereafter the treatment provider
2shall prepare an individualized drug treatment plan and forward
3it to the Parole Authority and to the California Department of
4Corrections and Rehabilitation, Division
of Adult Parole Operations
5agent responsible for supervising the parolee. On a quarterly basis
6after the parolee begins drug treatment, the treatment provider
7shall prepare and forward a progress report on the individual
8parolee to these entities and individuals.
9(1) If at any point during the course of drug treatment the
10treatment provider notifies the Department of Corrections and
11Rehabilitation, Division of Adult Parole Operations that the parolee
12is unamenable to the drug treatment provided, but amenable to
13other drug treatments or related programs, the Department of
14Corrections and Rehabilitation, Division of Adult Parole Operations
15may act to modify the terms of parole to ensure that the parolee
16receives the alternative drug treatment or program.
17(2) If at any point during the course of drug treatment the
18treatment provider notifies the Department of Corrections and
19
Rehabilitation, Division of Adult Parole Operations that the parolee
20is unamenable to the drug treatment provided and all other forms
21of drug treatment provided pursuant to subdivision (b) of Section
221210 and the amenability factors described in subparagraph (B)
23of paragraph (3) of subdivisionbegin delete (e)end deletebegin insert (f)end insert of Section 1210.1, the
24Department of Corrections and Rehabilitation, Division of Adult
25Parole Operations may act to revoke parole. At the revocation
26hearing, parole may be revoked if it is proved that the parolee is
27unamenable to all drug treatment.
28(3) Drug treatment services provided by subdivision (a) as a
29required condition of parole may not exceed 12 months, unless
30the Department of Corrections and Rehabilitation, Division of
31Adult Parole Operations
makes a finding supported by the record
32that the continuation of treatment services beyond 12 months is
33necessary for drug treatment to be successful. If that finding is
34made, the Department of Corrections and Rehabilitation, Division
35of Adult Parole Operations may order up to two six-month
36extensions of treatment services. The provision of treatment
37services under this act shall not exceed 24 months.
38(d) (1) If parole is revoked pursuant to the provisions of this
39subdivision, the defendant may be incarcerated pursuant to
40otherwise applicable law without regard to the provisions of this
P601 1section. Parole shall be revoked if the parole violation is proved
2and a preponderance of the evidence establishes that the parolee
3poses a danger to the safety of others.
4(2) If a parolee receives drug treatment under subdivision (a),
5and during the course of drug treatment
violates parole either by
6committing an offense other than a nonviolent drug possession
7offense, or by violating a non-drug-related condition of parole,
8and the Department of Corrections and Rehabilitation, Division
9of Adult Parole Operations acts to revoke parole, a hearing shall
10be conducted to determine whether parole shall be revoked.
11Parole may be modified or revoked if the parole violation is
12proved.
13(3) (A) If a parolee receives drug treatment under subdivision
14(a), and during the course of drug treatment violates parole either
15by committing a nonviolent drug possession offense, or a
16misdemeanor for simple possession or use of drugs or drug
17paraphernalia, being present where drugs are used, or failure to
18register as a drug offender, or any activity similar to those listed
19in subdivision (d) of Section 1210, or by violating a drug-related
20condition of parole, and the
Department of Corrections and
21Rehabilitation, Division of Adult Parole Operations acts to revoke
22parole, a hearing shall be conducted to determine whether parole
23shall be revoked. Parole shall be revoked if the parole violation is
24proved and a preponderance of the evidence establishes that the
25parolee poses a danger to the safety of others. If parole is not
26revoked, the conditions of parole may be intensified to achieve
27the goals of drug treatment.
28(B) If a parolee receives drug treatment under subdivision (a),
29and during the course of drug treatment for the second time violates
30that parole either by committing a nonviolent drug possession
31offense, or by violating a drug-related condition of parole, and the
32Department of Corrections and Rehabilitation, Division of Adult
33Parole Operations acts for a second time to revoke parole, a hearing
34shall be conducted to determine whether parole shall be revoked.
35If the alleged parole violation is proved,
the parolee is not eligible
36for continued parole under any provision of this section and may
37be reincarcerated.
38(C) If a parolee already on parole at the effective date of this
39act violates that parole either by committing a nonviolent drug
40possession offense, or a misdemeanor for simple possession or use
P602 1of drugs or drug paraphernalia, being present where drugs are used,
2or failure to register as a drug offender, or any activity similar to
3those listed in paragraph (1) of subdivision (d) of Section 1210,
4or by violating a drug-related condition of parole, and the
5Department of Corrections and Rehabilitation, Division of Adult
6Parole Operations acts to revoke parole, a hearing shall be
7conducted to determine whether parole shall be revoked. Parole
8shall be revoked if the parole violation is proved and a
9preponderance of the evidence establishes that the parolee poses
10a danger to the safety of others. If parole is not revoked, the
11conditions of
parole may be modified to include participation in
12a drug treatment program as provided in subdivision (a). This
13paragraph does not apply to any parolee who at the effective date
14of this act has been convicted of one or more serious or violent
15felonies in violation of subdivision (c) of Section 667.5 or Section
161192.7.
17(D) If a parolee already on parole at the effective date of this
18act violates that parole for the second time either by committing
19a nonviolent drug possession offense, or by violating a drug-related
20condition of parole, and the parole authority acts for a second time
21to revoke parole, a hearing shall be conducted to determine whether
22parole shall be revoked. If the alleged parole violation is proved,
23the parolee may be reincarcerated or the conditions of parole may
24be intensified to achieve the goals of drug treatment.
25(e) The term “drug-related condition of
parole” shall include a
26parolee’s specific drug treatment regimen, and, if ordered by the
27Department of Corrections and Rehabilitation, Division of Adult
28Parole Operations pursuant to this section, employment, vocational
29training, educational programs, psychological counseling, and
30family counseling.
Section 3440 of the Penal Code is amended to read:
(a) Sterilization for the purpose of birth control,
33including, but not limited to, during labor and delivery, of an
34individual under the control of the department or a county and
35imprisoned in the state prison or a reentry facility, community
36correctional facility, county jail, or any other institution in which
37an individual is involuntarily confined or detained under a civil or
38criminal statute, is prohibited.
39(b) Sterilization of an individual under the control of the
40department or a county and imprisoned in the state prison or a
P603 1reentry facility, community correctional facility, county jail, or
2any other institution in which an individual is involuntarily
3confined or detained under a civil or criminal statute, through tubal
4ligation, hysterectomy, oophorectomy,
salpingectomy, or any other
5means rendering an individual permanently incapable of
6reproducing, is prohibited except in either of the following
7circumstances:
8(1) The procedure is required for the immediate preservation
9of the individual’s life in an emergency medical situation.
10(2) The sterilizing procedure is medically necessary, as
11determined by contemporary standards of evidence-based medicine,
12to treat a diagnosed condition, and all of the following requirements
13are satisfied:
14(A) Less invasive measures to address the medical need are
15nonexistent, are refused by the individual, or are first attempted
16and deemed unsuccessful by the individual, in consultation with
17his or her medical provider.
18(B) A secondbegin delete physicianend deletebegin insert
physician,end insert independent of, and not
19employed by, but authorized to provide services to individuals in
20the custody of, and to receive payment for those services from,
21the department or county department overseeing the confinement
22of thebegin delete individualend deletebegin insert individual,end insert conducts an in-person consultation
23with the individual and confirms the need for a medical intervention
24resulting in sterilization to address the medical need.
25(C) Patient consent is obtained after the individual is made aware
26of the full and permanent impact the procedure will have on his
27or her reproductive capacity, that future medical treatment while
28under the control of the department or county will not be withheld
29should the individual refuse consent to the
procedure, and the side
30effects of the procedure.
31(c) If a sterilization procedure is performed pursuant to
32paragraph (1) or (2) of subdivision (b), presterilization and
33poststerilization psychological consultation and medical followup,
34including providing relevant hormone therapy to address surgical
35menopause, shall be made available to the individual sterilized
36while under the control of the department or the county.
37(d) (1) The department shall, if a sterilization procedure is
38performed on one or more individuals under its control, annually
39publish on its Internet Web site data related to the number of
P604 1sterilizations performed, disaggregated by race, age, medical
2justification, and method of sterilization.
3(2) (A) Each county jail or other institution of confinement
4
shall, if a sterilization procedure is performed on one or more
5individuals under its control, annually submit to the Board of State
6and Community Corrections data related to the number of
7sterilizations performed, disaggregated by race, age, medical
8justification, and method of sterilization.
9(B) The Board of State and Community Corrections shall
10annually publish the data received pursuant to subparagraph (A)
11on its Internet Web site.
12(e) The department and all county jails or other institutions of
13confinement shall provide notification to all individuals under their
14custody and to all employees who are involved in providing health
15care services of their rights and responsibilities under this section.
16(f) An employee of the department or of a county jail or other
17institution of confinement who reports the
sterilization of an
18individual performed in violation of this section is entitled to the
19protection available under subparagraphs (A) and (B) of paragraph
20(2) of subdivision (a) of Section 6129, or under the California
21Whistleblower Protection Act (Article 3 (commencing with Section
228547) of Chapter 6.5 of Division 1 of Title 2 of the Government
23Code) or the Whistleblower Protection Act (Article 10
24(commencing with Section 9149.20) of Chapter 1.5 of Part 1 of
25Division 2 of Title 2 of the Government Code).
Section 4501 of the Penal Code is amended to read:
(a) Except as provided in Section 4500, every person
28confined inbegin delete aend deletebegin insert theend insert state prison of this state who commits an assault
29upon the person of another with a deadly weapon or instrument
30shall be guilty of a felony and shall be imprisoned in the state
31prison for two, four, or six years to be served consecutively.
32(b) Except as provided in Section 4500, every person confined
33inbegin delete aend deletebegin insert theend insert state
prison of this state who commits an assault upon the
34person of another by any means of force likely to produce great
35bodily injury shall be guilty of a felony and shall be imprisoned
36in the state prison for two, four, or six years to be served
37consecutively.
Section 4852.08 of the Penal Code is amended to
39read:
During the proceedings upon the petition, the
2petitioner may be represented by counsel of hisbegin insert or herend insert own
3begin delete selection; if he has no such counselend deletebegin insert selection. If the petitioner does
4not have counsel,end insert hebegin insert or sheend insert shall be represented by the public
5defender, if there is one in the county, and if there is none, by the
6adult probation officer of thebegin delete countyend deletebegin insert
county,end insert or if in the opinion
7of the court the petitioner needs counsel, the court shall assign
8counsel to representbegin delete him.end deletebegin insert him or her.end insert
Section 4852.11 of the Penal Code is amended to
10read:
begin deleteAny end deletebegin insertA end insertpeace officer shall report to the court, upon
12receiving a request as provided in Section 4852.1, allbegin insert knownend insert
13 violations of law committed bybegin delete saidend deletebegin insert theend insert petitionerbegin delete which may come . Upon receiving satisfactory proof of
14to his knowledgeend deletebegin delete suchend deletebegin insert
aend insert
15 violation the court may deny the petition and determine a new
16period of rehabilitation not to exceed the original period of
17rehabilitation for the same crime. In that event, before granting
18the petition, the court maybegin delete thereafterend delete require the petitioner to fulfill
19all the requirements provided to be fulfilled before the granting of
20the certificate under the original petition.
Section 4852.12 of the Penal Code is amended to
22read:
(a) Inbegin delete anyend deletebegin insert aend insert proceeding for the ascertainment and
24declaration of the fact of rehabilitation under this chapter, the court,
25upon the filing of the application for petition of rehabilitation, may
26request from the district attorney an investigation of the residence
27of the petitioner, the criminal record of the petitioner as shown by
28the records of the Department of Justice, any representation made
29to the court by the applicant, the conduct of the petitioner during
30begin delete hisend deletebegin insert
theend insert period of rehabilitation, including all matters mentioned in
31Section 4852.11, and any other information the courtbegin delete may deemend delete
32begin insert
deemsend insert necessary in making its determination.begin delete If so requested, theend delete
33begin insert Theend insert district attorney shallbegin insert, upon request of the court,end insert provide the
34court with a full and complete report ofbegin delete suchend deletebegin insert theend insert investigations.
35(b) In any proceeding for the ascertainment and declaration of
36the fact of rehabilitation under this chapter of a person convicted
37of a crime the accusatory pleading of which has been dismissed
38pursuant to Section 1203.4, the
district attorney, upon request of
39the court, shall deliver to the court the criminal record of petitioner
40as shown by the records of the Department of Justice. The district
P606 1attorney may investigate any representation made to the court by
2petitioner and may file with the court a report of the investigation
3including all matters known to the district attorney relating to the
4conductbegin delete andend deletebegin insert of the petitioner, theend insert place and duration of residence
5of the petitioner during the period ofbegin delete rehabilitationend deletebegin insert rehabilitation,end insert
6 and all known violations of law committed bybegin insert
theend insert
petitioner.
Section 4852.14 of the Penal Code is amended to
8read:
The clerk of the court shall immediately transmit
10certified copies of the certificate of rehabilitation to the Governor,
11to the Board ofbegin delete Prison Termsend deletebegin insert Parole Hearingsend insert and the Department
12of Justice, and, in the case of persons twice convicted of a felony,
13to the Supreme Court.
Section 4852.18 of the Penal Code is amended to
15read:
The Board ofbegin delete Prison Termsend deletebegin insert Parole Hearingsend insert shall
17furnish to the clerk of the superior court of each county a set of
18sample forms for a petition for certificate of rehabilitation and
19pardon, a notice of filing of petition for certificate of rehabilitation
20and pardon, and a certificate of rehabilitation. The clerk of the
21court shall have a sufficient number of these forms printed to meet
22the needs of the people of the county, and shall make these forms
23available at no charge to persons requesting them.
Section 11105.05 of the Penal Code is repealed.
Any information generated pursuant to the provisions
26of paragraph (11) of subdivision (c) of Section 11105 shall be
27destroyed at the end of the limitation period for the filing of a civil
28action arising out of the screening or accreditation of persons as
29current or prospective employees, concessionaires and contractors
30and their subcontractors, agents and employees for Olympic Games
31purposes. The knowing and willful failure to (1) notify the recipient
32as required by Section 11105, or (2) to destroy any information as
33required by this section, is a misdemeanor punishable in a county
34jail not exceeding one year or by a fine not exceeding one thousand
35dollars ($1,000) or both.
Section 13510.5 of the Penal Code is amended to
37read:
For the purpose of maintaining the level of
39competence of state law enforcement officers, the commission
40shall adopt, and may, from time to time amend, rules establishing
P607 1minimum standards for training of peace officers as defined in
2Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2,
3who are employed by any railroad company,begin delete the California State the University of California
4Police Division,end deletebegin delete Police Department,end delete
5begin insert police department,end insert a California State University police department,
6the Department of Alcoholic Beverage Control, the Division of
7Investigation of the
Department of Consumer Affairs, the Wildlife
8Protection Branch of the Department of Fish andbegin delete Game,end deletebegin insert Wildlife,end insert
9 the Department of Forestry and Fire Protection, including the
10Office of the State Fire Marshal, the Department of Motor Vehicles,
11the California Horse Racing Board, thebegin delete Bureau ofend delete Food andbegin delete Drug,end delete
12begin insert Drug Section of the State Department of Public Health,end insert the
13Division of Laborbegin delete Lawend deletebegin insert
Standardsend insert Enforcement, the Director of
14Parks and Recreation, the State Department of Health Care
15Services, the Department of Toxic Substances Control, the State
16Department of Social Services, the State Department of State
17Hospitals, the State Department of Developmental Services, the
18Office of Statewide Health Planning and Development, and the
19Department of Justice. All rules shall be adopted and amended
20pursuant to Chapter 3.5 (commencing with Section 11340) of Part
211 of Division 3 of Title 2 of the Government Code.
Section 13980 of the Penal Code is amended and
23renumbered to read:
[13908.]
(a) The Office of Criminal Justice Planning shall
26undertake a study to determine whether it would be feasible to
27develop a state-operated center on computer forensics for the
28purpose of collecting, compiling, and analyzing information,
29including evidence seized in connection with criminal proceedings,
30in computer formats to provide assistance to state and local law
31enforcement agencies in the investigation and prosecution of crimes
32involving computer technology.
33(b) The office shall involve state and local law enforcement
34agencies as well as representatives of the computer industry in the
35development of the feasibility
study required by this section.
36(c) The office shall report its findings and conclusions to the
37Legislature on or before June 30, 2000.
The heading of Title 6.7 (commencing with Section
3913990) of Part 4 of the Penal Code is repealed.
P608 1
Section 18115 of the Penal Code is amended to read:
(a) The court shall notify the Department of Justice
8when a gun violence restraining order has been issued or renewed
9under this division no later than one court day after issuing or
10renewing the order.
11(b) The court shall notify the Department of Justice when a gun
12violence restraining order has been dissolved or terminated under
13this division no later than five court days after dissolving or
14terminating the order. Upon receipt of either a notice of dissolution
15or a notice of termination of a gun violence restraining order, the
16Department of Justice shall, within 15 days,begin delete noteend delete document the
17updated status of any order issued under this division.
18(c) The notices required to be submitted to the Department of
19Justice pursuant to this section shall be submitted in an electronic
20format, in a manner prescribed by the department.
21(d) When notifying the Department of Justice pursuant to
22subdivision (a) or (b), the court shall indicate in the notice whether
23the person subject to the gun violence restraining order was present
24in court to be informed of the contents of the order or if the person
25failed to appear. The person’s presence in courtbegin delete shall constituteend delete
26begin insert constitutesend insert proof of service of notice of the terms of the order.
27(e) (1) Within one business day of
service, a law enforcement
28officer who served a gun violence restraining order shall submit
29the proof of service directly into the California Restraining and
30Protective Order System, including his or her name and law
31enforcement agency, and shall transmit the original proof of service
32form to the issuing court.
33(2) Within one business day of receipt of proof of service by a
34person other than a law enforcement officer, the clerk of the court
35shall submit the proof of service of a gun violence restraining order
36directly into the California Restraining and Protective Order
37System, including the name of the person who served the order.
38If the court is unable to provide this notification to the Department
39of Justice by electronic transmission, the court shall, within one
40business day of receipt, transmit a copy of the proof of service to
P609 1a local law enforcement agency. The local law enforcement agency
2shall submit the proof of service directly into
the California
3Restraining and Protective Order System within one business day
4of receipt from the court.
Section 18150 of the Penal Code is amended to read:
(a) (1) An immediate family member of a person or
7a law enforcement officer may file a petition requesting that the
8court issue an ex parte gun violence restraining order enjoining
9the subject of the petition from having in his or her custody or
10control, owning, purchasing, possessing, or receiving a firearm or
11ammunition.
12(2) For purposes of this subdivision, “immediate family
13member” has the same meaning as in paragraph (3) of subdivision
14(b) of Section 422.4.
15(b) A court may issue an ex parte gun violence restraining order
16if the petition, supported by an affidavit made in writing and signed
17by the petitioner under oath, or an oral statement taken pursuant
18tobegin delete paragraph (2) ofend delete
subdivision (a) of Section 18155, and any
19additional information provided to the court shows that there is a
20substantial likelihood that both of the following are true:
21(1) The subject of the petition poses a significant danger, in the
22near future, ofbegin insert causingend insert personal injury to himself, herself, or
23another by having in his or her custody or control, owning,
24purchasing, possessing, or receiving a firearm as determined by
25considering the factors listed in Section 18155.
26(2) An ex parte gun violence restraining order is necessary to
27prevent personal injury to the subject of the petition or another
28because less restrictive alternatives either have been tried and
29found to be ineffective, or are inadequate or inappropriate for the
30circumstances of the subject of the
petition.
31(c) An affidavit supporting a petition for the issuance of an ex
32parte gun violence restraining order shall set forth the facts tending
33to establish the grounds of the petition, or the reason for believing
34that they exist.
35(d) An ex parte order under this chapter shall be issued or denied
36on the same day that the petition is submitted to the court, unless
37the petition is filed too late in the day to permit effective review,
38in which case the order shall be issued or denied on the next day
39of judicial business in sufficient time for the order to be filed that
40day with the clerk of the court.
Section 18155 of the Penal Code is amended to read:
(a) (1) The court, before issuing an ex parte gun
3violence restraining order, shall examine on oath, the petitioner
4and any witness the petitioner may produce.
5(2) In lieu of examining the petitioner and any witness the
6petitioner may produce, the court may require the petitioner and
7any witness to submit a written affidavit signed under oath.
8(b) (1) In determining whether grounds for a gun violence
9restraining order exist, the court shall consider all evidence of the
10following:
11(A) A recent threat of violence or act of violence by the subject
12of the petition directed toward another.
13(B) A recent threat of violence or act of violence by the subject
14of the petition directed toward himself or herself.
15(C) A violation of an emergency protective order issued pursuant
16to Section 646.91 or Part 3 (commencing with Section 6240) of
17Division 10 of the Family Code that is in effect at the time the
18court is considering the petition.
19(D) A recent violation of an unexpired protective order issued
20pursuant to Part 4 (commencing with Section 6300) of Division
2110 of the Family Code, Section 136.2, Section 527.6 of the Code
22of Civil Procedure, or Section 213.5 or 15657.03 of the Welfare
23and Institutions Code.
24(E) A conviction for any offense listed in Section 29805.
25(F) A pattern of
violent acts or violent threats within the past
2612 months, including, but not limited to, threats of violence or acts
27of violence by the subject of the petition directed toward himself,
28herself, or another.
29(2) In determining whether grounds for a gun violence
30restraining order exist, the court may consider any other evidence
31of an increased risk for violence, including, but not limited to,
32evidence of any of the following:
33(A) The unlawful and reckless use, display, or brandishing of
34a firearm by the subject of the petition.
35(B) The history of use, attempted use, or threatened use of
36physical force by the subject of the petition against another person.
37(C) begin deleteAny end deletebegin insertA
end insertprior arrest of the subject of the petition for a felony
38offense.
39(D) begin deleteAny end deletebegin insertA end inserthistory of a violation by the subject of the petition
40of an emergency protective order issued pursuant to Section 646.91
P611 1or Part 3 (commencing with Section 6240) of Division 10 of the
2Family Code.
3(E) begin deleteAny end deletebegin insertA end inserthistory of a violation by the subject of the petition
4of a protective order issued pursuant to Part 4 (commencing with
5Section 6300) of Division 10 of the Family Code, Section 136.2,
6Section 527.6 of
the Code of Civil Procedure, or Section 213.5 or
715657.03 of the Welfare and Institutions Code.
8(F) Documentary evidence, including, but not limited to, police
9reports and records of convictions, of either recent criminal
10offenses by the subject of the petition that involve controlled
11substances or alcohol or ongoing abuse of controlled substances
12or alcohol by the subject of the petition.
13(G) Evidence of recent acquisition of firearms, ammunition, or
14other deadly weapons.
15(3) For the purposes of this subdivision, “recent” means within
16the six months prior to the date the petition was filed.
17(c) If the court determines thatbegin delete thereend deletebegin insert
theend insert grounds to issue an ex
18parte gun violence restraining order exist, it shall issue an ex parte
19gun violence restraining order that prohibits the subject of the
20petition from having in his or her custody or control, owning,
21purchasing, possessing, or receiving, or attempting to purchase or
22receive, a firearm or ammunition, and expires no later than 21 days
23from the date of the order.
Section 18175 of the Penal Code is amended to read:
(a) In determining whether to issue a gun violence
26restraining order under this chapter, the court shall consider
27evidence of the facts identified in paragraph (1) of subdivision (b)
28of Section 18155 and may consider any other evidence of an
29increased risk for violence, including, but not limited to, evidence
30of the facts identified in paragraph (2) of subdivision (b) of Section
3118155.
32(b) At the hearing, the petitioner shall have the burden of
33proving, by clear and convincing evidence, that both of the
34following are true:
35(1) The subject of the petition, or a person subject to an ex parte
36gun violence restraining order, as applicable, poses a significant
37danger ofbegin insert
causingend insert personal injury to himself, herself, or another
38by having in his or her custody or control, owning, purchasing,
39possessing, or receiving a firearm or ammunition.
P612 1(2) A gun violence restraining order is necessary to prevent
2personal injury to the subject of the petition, or the person subject
3to an ex parte gun violence restraining order, as applicable, or
4another because less restrictive alternatives either have been tried
5and found to be ineffective, or are inadequate or inappropriate for
6the circumstances of the subject of the petition, or the person
7subject to an ex parte gun violence restraining order, as applicable.
8(c) (1) If the court finds that there is clear and convincing
9evidence to issue a gun violence restraining order, the court shall
10issue a gun violence restraining order that prohibits the subject
of
11the petition from having in his or her custody or control, owning,
12purchasing, possessing, or receiving, or attempting to purchase or
13receive, a firearm or ammunition.
14(2) If the court finds that there is not clear and convincing
15evidence to support the issuance of a gun violence restraining
16order, the court shall dissolve any temporary emergency or ex
17parte gun violence restraining order then in effect.
18(d) begin deleteThe end deletebegin insertA end insertgun violence restraining order issued under this
19chapterbegin delete shall haveend deletebegin insert hasend insert a duration of
one year, subject to termination
20by further order of the court at a hearing held pursuant to Section
2118185 and renewal by further order of the court pursuant to Section
2218190.
Section 27210 of the Penal Code is amended to read:
(a) The producer and facility’s manager of a gun show
25or event shall prepare an annual event and security plan and
26schedule that shall include, at a minimum, the following
27information for each show or event:
28(1) The type of show orbegin delete eventend deletebegin insert event,end insert including, but not limited
29to, antique or general firearms.
30(2) The estimated number of vendors offering firearms for sale
31or display.
32(3) The estimated number of attendees.
33(4) The number of entrances and exits at the gun show or event
34site.
35(5) The location, dates, and times of the show or event.
36(6) The contact person and telephone number for both the
37producer and the facility.
38(7) The number of sworn peace officers employed by the
39producer or the facility’s manager who will be present at the show
40or event.
P613 1(8) The number of nonsworn security personnel employed by
2the producer or the facility’s manager who will be present at the
3show or event.
4(b) The annual event and security plan shall be submitted by
5either the producer or the facility’s manager to the Department of
6Justice and the law
enforcement agency with jurisdiction over the
7facility.
8(c) If significant changes have been made since the annual plan
9was submitted, the producer shall, not later than 15 days before
10commencement of the gun show or event, submit to the department,
11the law enforcement agency with jurisdiction over the facility site,
12and the facility’s manager, a revised event and security plan,
13including a revised list of vendors that the producer knows, or
14reasonably should know, will be renting tables, space, or otherwise
15participating in the gun show or event.
16(d) The event and security plan shall be approved by the
17facility’s manager before the event or show, after consultation with
18the law enforcement agency with jurisdiction over the facility.
19(e) begin deleteNo end deletebegin insertA
end insertgun show or event shallbegin insert notend insert commence unless the
20requirements of subdivisions (b), (c), and (d) are met.
Section 30625 of the Penal Code is amended to read:
Sections 30600, 30605, and 30610begin delete shallend deletebegin insert doend insert not apply
23to the salebegin insert of an assault weapon or .50 BMG rifleend insert to,begin delete purchase by, begin insert or the purchase, importation,end insert or possession ofbegin insert anend insert
24importation of,end delete
25 assaultbegin delete weaponsend deletebegin insert
weaponend insert or a .50 BMG rifle bybegin insert,end insert the Department
26of Justice, police departments, sheriffs’ offices, marshals’ offices,
27the Department of Corrections and Rehabilitation, the Department
28of the California Highway Patrol, district attorneys’ offices, the
29Department of Fish andbegin delete Game,end deletebegin insert Wildlife,end insert the Department of Parks
30and Recreation, or the military or naval forces of this state or of
31the United States, or any federal law enforcement agency for use
32in the discharge of their official duties.
The heading of Part 14 (commencing with Section
34900) of Division 2 of the Probate Code, as added by Section 14 of
35Chapter 79 of the Statutes of 1990, is repealed.
36
The heading of Article 1 (commencing with Section
27200) of Chapter 3 of Part 1 of Division 7 of the Probate Code is
3repealed.
4
Section 10299 of the Public Contract Code, as added
8by Section 33 of Chapter 71 of the Statutes of 2000, is repealed.
(a) Notwithstanding any other provision of law, the
10director may consolidate the needs of multiple state agencies for
11information technology, goods and services, and, pursuant to the
12procedures established in Chapter 3 (commencing with Section
1312100), establish contracts, master agreements, multiple award
14schedules, cooperative agreements, including agreements with
15entities outside the state, and other types of agreements that
16leverage the state’s buying power, for acquisitions authorized under
17Chapter 2 (commencing with Section 10290), Chapter 3
18(commencing with Section 12100), and Chapter 3.6 (commencing
19with Section 12125). State agencies and local agencies may
20contract with suppliers awarded the contracts without further
21competitive bidding.
22(b) The director may make the services of the department
23available, upon the terms and conditions agreed upon, to any school
24district empowered to expend public funds. These school districts
25may, without further competitive bidding, utilize contracts, master
26agreements, multiple award schedules, cooperative agreements,
27or other types of agreements established by the department for use
28by school districts for the acquisition of information technology,
29goods, and services. The state shall incur no financial responsibility
30in connection with the contracting of local agencies under this
31section.
Section 20427 of the Public Contract Code is
33amended to read:
At any time prior to publication and posting notice
35inviting bids, the legislative body by resolution, may determine
36thatbegin delete in the event thatend deletebegin insert ifend insert the contractor, contracting owners included,
37does not complete the work within the time limit specified in the
38contract or withinbegin delete suchend deletebegin insert theend insert further timebegin delete asend deletebegin insert
thatend insert the legislative body
39begin delete shall haveend delete authorized, the contractor or contracting owners, as the
40case may be, shall pay to the city liquidated damages in the amount
P615 1fixed by the legislative body inbegin delete saidend deletebegin insert
theend insert
resolution. The amount so
2fixed is valid as liquidated damages unless manifestly unreasonable
3under the circumstances existing at the time the contract was made.
4Ifbegin delete suchend deletebegin insert thisend insert
determination is made, the plans or specifications and
5the contract shall contain provisions in accordancebegin delete therewith.end deletebegin insert with
6that determination.end insert
7Any moneys received by the city on account ofbegin delete suchend deletebegin insert thoseend insert
8 liquidated damages shall be applied as follows:
9(1) If received prior to confirmation of the assessment,begin delete suchend delete
10begin insert thoseend insert moneys
shall be applied as a contribution against the
11assessment.
12(2) If received after the confirmation of the assessment,begin delete suchend delete
13begin insert thoseend insert moneys shall be applied in the manner provided in Section
14begin delete 5132.1end deletebegin insert 5132.05end insert of the Streets and Highways Code for the
15disposition of excess acquisition funds.
16(3) If a contribution hasbegin delete theretoforeend deletebegin insert previouslyend insert
been made or
17ordered by any agency, the legislative body may order a refund to
18the contributing agency in the proportionbegin delete which saidend deletebegin insert
that theend insert
19 contribution bears to the total costs and expenses of the work.
Section 541.5 of the Public Resources Code is
21amended to read:
(a) The department shall not close, or propose to close,
23a state park in the 2012-13 or 2013-14 fiscal year. The commission
24and the department shall recommend all necessary steps to establish
25a sustainable funding strategy for the department to the Legislature
26on or before January 1, 2015.
27(b) There is hereby appropriated twenty million five hundred
28thousand dollars ($20,500,000) to the department from the State
29Parks and Recreation Fund, which shall be available for
30encumbrance until June 30, 2016, and for liquidation until June
3130, 2018, to be expended as follows:
32(1) Ten million dollars ($10,000,000) shall be available to
33provide for matching funds pursuant to subdivision (c).
34(2) Ten million dollars ($10,000,000) shall be available for the
35department to direct funds to parks that remain at risk of closure
36or that will keep parks open during the 2012-13 to 2015-16 fiscal
37years, inclusive. Priority may be given to parks subject to a donor
38or operating agreement or other contractual arrangement with the
39department.
P616 1(3) Up to five hundred thousand dollars ($500,000) shall be
2available for the department to pay for ongoing audits and
3investigations as directed by the Joint Legislative Audit Committee,
4the office of the Attorney General, the Department of Finance, or
5other state agency.
6(c) The department shall match on a dollar-for-dollar basis all
7financial contributions contributed by a donor pursuant to an
8agreement for the 2012-13 fiscal year for which the department
9received funds as of July
31, 2013, and for agreements entered
10into in the 2013-14 fiscal year. These matching funds shall be
11used exclusively in the park unit subject to those agreements.
12(d) The department shall notify the Joint Legislative Budget
13Committee in writing not less than 30 days before the expenditure
14of funds under this section of the funding that shall be expended,
15the manner of the expenditure, and the recipient of the expenditure.
16(e) The prohibition on the closurebegin insert,end insert or proposed closurebegin insert,end insert of a
17state park in the 2012-13 or 2013-14 fiscal year, pursuant to
18paragraph (a), does not limit or affect the department’s authority
19to enter into an operating agreement, pursuant to Section
5080.42,
20during the 2012-13 or 2013-14 fiscal year, for purposes of the
21operation of the entirety of a state park during the 2012-13 or
222013-14 fiscal year.
Section 4598.1 of the Public Resources Code is
24amended to read:
(a) The purpose of this article is to encourage private
26investments in, and improved long-term management of,
27timberlands and resources within the state to promote carbon
28sequestration through increased timber growth and inventory,
29reduced carbon emissions from wildland fires by creating fire
30resiliency on private timberlands, and the protection, maintenance,
31and enhancement of a productive and stable forest resource system
32for the benefit of present and future generations.
33(b) The primary emphasis of the program established by this
34article shall be upon increasing carbon sequestration in timberlands
35and reducing carbon emissions from wildlandbegin delete fires; provided that, begin insert
fires. Consistentend insert with this primary emphasis, the program
36consistentend delete
37shall also be managed to maintain or improve all forest resources,
38such as fish and wildlife habitat and soil resources, so that the
39overall effect of the program is to improve the total forest resource
40system.
Section 4598.6 of the Public Resources Code is
2amended to read:
To be eligible for participation in an agreement or grant
4pursuant to Section 4598.5, the following conditions shall be met:
5(a) The application requirements established by the board are
6satisfied.
7(b) The landowner is a smaller nonindustrial landowner, as
8defined in Section 4598.3. Where the timberland is owned jointly
9by more than one individual, group, association, or corporation,
10as joint tenants, tenants in common, tenants by the entirety, or
11otherwise, the joint owners shall be considered, for the purposes
12of this article, as one landowner.
13(c) The parcel or parcels of timberland to which the PTEIR shall
14apply is either:
15(1) Within a timber preserve zone established pursuant to Article
166.7 (commencing with Section 51100) of Part 1 of Division 1 of
17Title 5 of the Governmentbegin delete Code; provided, that the parcel of begin insert Code andend insert not the subject of an application for
18timberland isend delete
19rezoning or immediate rezoning pursuant to Section 51120begin insert of,end insert or
20begin delete 51130end deletebegin insert Article 4 (commencing with Section 51130) of Chapter 6.7
21of Part 1 of Division 1 of Title 5,end insert of the Government Code.
22(2) Subject to a contract signed by the landownerbegin delete providing thatend delete
23begin insert
in whichend insert the landowner agrees not to develop the parcel of
24timberland for uses incompatible with the PTEIR within 20 years
25following the execution of an agreement or the making of a grant
26pursuant to Section 4598.5. The director shall record the contract
27in the office of the county recorder in the county in which the
28parcel of timberland is located and, upon recordation, the contract
29shall be binding upon any person to whom the parcel of timberland
30is sold, assigned, devised, or otherwise transferred by agreement
31or operation of law.
Section 4598.7 of the Public Resources Code is
33amended to read:
Payments or grants pursuant to this article may be
35made for work that is also the subject of payments or other
36assistance provided pursuant to federalbegin delete law; provided, that begin insert law. Paymentsend insert or grants shall not be made pursuant to
37paymentsend delete
38this article to satisfy landowner cost share requirements of, or
39repay loans received pursuant to, federalbegin delete law; and provided, further, begin insert law. Theend insert combined state and federal payments or other
40that theend delete
P618 1assistancebegin delete doend deletebegin insert
shallend insert not together exceed the amount of the actual
2cost of the PTEIR to the landowner.
Section 5080.16 of the Public Resources Code is
4amended to read:
If the director determines that it isbegin delete forend deletebegin insert inend insert the best
6interests of the state, the director, upon giving notice to the State
7Park and Recreation Commission, may negotiate or renegotiate a
8contract, including terms and conditions, when one or more of the
9following conditions exist:
10(a) The bid process as prescribed in this article has failed to
11produce a best responsible bidder.
12(b) The negotiation or renegotiation would constitute an
13extension of an existing contract obtained through the
process
14required by this article and the extended contract would provide
15for substantial and additional concession facilities, which would
16be constructed at the sole expense of the concessionaire and which
17are set forth in the general plan for the unit and are needed to
18accommodate existing or projected increased public usage.
19(c) Lands in the state park system administered by the
20department and lands under the legal control of the prospective
21concessionaire are so situated that the concession is dependent
22upon the use of those public and private lands for the physical or
23economic success, or both, of the concession.
24(d) begin deleteWhenever a end deletebegin insertA end insertconcession is desired for particular interpretive
25purposes
in a unit of the state park system and the prospective
26concessionaire possesses special knowledge, experience, skills, or
27ability appropriate to the particular interpretive purposes.
28(e) begin deleteWhenever the end deletebegin insertThe end insertconcession has been severely and
29adversely impacted through no fault of the concessionaire by an
30unanticipated calamity, park closure, major construction, or other
31harmful event or action.
32(f) begin deleteWhenever the end deletebegin insertThe end insertestimated administrative costs for the bid
33process exceed the projected annual net rental
revenue to the state.
Section 5096.955 of the Public Resources Code, as
35added by Section 14 of Chapter 178 of the Statutes of 2007, is
36amended and renumbered to read:
(a) For the purposes of any levee evaluation
39activities funded by the department, the department shall not
40require a local cost-share for the following levee evaluations:
P619 1(1) Evaluations of levees that are part of the facilities of the
2State Plan of Flood Control.
3(2) Evaluations of levees located in the Central Valley that are
4not part of the State Plan of Flood Control, and that protect an
5urban area, as defined by subdivision (k) of Section 5096.805.
6(3) Evaluations of levees chosen to be performed by the
7department as part of an effort to protect critical water conveyance
8infrastructure through the Sacramento-San Joaquin Delta.
9(b) The department shall identify the levees described in
10paragraph (2) of subdivision (a) in the Bond Expenditure Disaster
11Preparedness and Flood Prevention Plan described in Section
12begin delete 5096.821end deletebegin insert 5096.820end insert and notify the Governor and the Legislature
13of the location of these levees.
Section 6217.2 of the Public Resources Code, as
15added by Section 5 of Chapter 326 of the Statutes of 1998, is
16repealed.
Moneys in the Marine Life and Marine Reserve
18Management Account created in the Resources Trust Fund pursuant
19to paragraph (2) of subdivision (c) of Section 6217, shall be
20expended by the Department of Fish and Game for the following
21purposes:
22(a) To develop and implement fishery management plans.
23(b) To fund research on marine life and marine fisheries.
24(c) To fund peer reviews of research plans and fishery
25management plans.
26(d) To fund the evaluation, coordination, and management of
27marine reserves and other marine managed areas.
The heading of Chapter 6 (commencing with Section
2912292) of Division 10.5 of the Public Resources Code is repealed.
30
Section 14591.2 of the Public Resources Code is
34amended to read:
(a) The department may take disciplinary action
36against any party responsible for directing, contributing to,
37participating in, or otherwise influencing the operations of a
38certified or registered facility or program. A responsible party
39includes, but is not limited to, the certificate holder, registrant,
40officer, director, or managing employee. Except as otherwise
P620 1provided in this division, the department shall provide a notice
2and hearing in accordance with Chapter 5 (commencing with
3Section 11500) of Part 1 of Division 3 of Title 2 of the Government
4Code before taking any disciplinary action against a certificate
5holder.
6(b) All of the following are grounds for disciplinary action, in
7the form determined by the department in accordance with
8subdivision (c):
9(1) The responsible party engaged in fraud or deceit to obtain
10a certificate or registration.
11(2) The responsible party engaged in dishonesty, incompetence,
12negligence, or fraud in performing the functions and duties of a
13certificate holder or registrant.
14(3) The responsible party violated this division or any regulation
15adopted pursuant to this division, including, but not limited to, any
16requirements concerning auditing, reporting, standards of operation,
17or being open for business.
18(4) The responsible party is convicted of any crime of moral
19turpitude or fraud, any crime involving dishonesty, or any crime
20substantially related to the qualifications, functions, or duties of a
21certificate holder.
22(c) The department may take disciplinary action pursuant to this
23section, by taking any one of, or any combination of, the following:
24(1) Immediate revocation of the certificate or registration, or
25revocation of a certificate or registration as of a specific date in
26the future.
27(2) Immediate suspension of the certificate or registration for a
28specified period of time, or suspension of the certificate or
29registration as of a specific date in the future. Notwithstanding
30subdivision (a), the department may impose a suspension of five
31days or less through an informal notice, if the action is subject to
32a stay on appeal, pending an informal hearing convened in
33accordance with Article 10 (commencing with Section 11445.10)
34of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government
35Code.
36(3) Imposition
on the certificate or registration of any condition
37that the department determines would further the goals of this
38division.
39(4) Issuance of a probationary certificate or registration with
40conditions determined by the department.
P621 1(5) Collection of amounts in restitution of any money improperly
2paid to the certificate holder or registrant from the fund.
3(6) Imposition of civil penalties pursuant to Section 14591.1.
4(7) Suspension for a specified period of time or permanent
5revocation of eligibility of a supermarket site, rural region recycler,
6or a nonprofit convenience zone recycler to receive handling fees
7at one or more of the certificate holder’s certified recycling centers.
8(d) The
department may do any of the following in taking
9disciplinary action pursuant to this section:
10(1) If a certificate holder or registrant holds certificates or is
11registered to operate at more than one site or to operate in more
12than one capacity at one location, such as an entity certified as
13both a processor and a recycling center, the department may
14simultaneously revoke, suspend, or impose conditions upon some,
15or allbegin insert,end insertbegin delete of,end deletebegin insert
ofend insert the certificates held by the responsible party.
16(2) If the responsible party is an officer, director, partner,
17manager, employee, or the owner of a controlling ownership
18interest of another certificate holder or registrant, that other
19operator’s certificate or registration may also be revoked,
20suspended, or conditioned by the department in the same
21proceeding, if the other certificate holder or registrant is given
22notice of that proceeding, or in a subsequent proceeding.
23(3) (A) If, pursuant to notice and a hearing conducted by the
24director or the director’s designee in accordance with Article 10
25(commencing with Section 11445.10) of Chapter 4.5 of Part 1 of
26Division 3 of Title 2 of the Government Code, the department
27determines that the continued operation of a certified or registered
28entity poses an immediate and
significant threat to the fund, the
29department may order the immediate suspension of the certificate
30holder or registrant, pending revocation of the certificate or
31registration, or the issuance of a probationary certificate imposing
32reasonable terms and conditions. The department shall record the
33testimony at the hearing and, upon request, prepare a transcript.
34For purposes of this section, an immediate and significant threat
35to the fund means any of the following:
36(i) A loss to the fund of at least ten thousand dollars ($10,000)
37during the six-month period immediately preceding the order of
38suspension.
P622 1(ii) Missing or fraudulent records associated with a claim or
2claims totaling at least ten thousand dollars ($10,000) during the
3six-month period immediately preceding the order of suspension.
4(iii) A pattern of
deceit, fraud, or intentional misconduct in
5carrying out the duties and responsibilities of a certificate holder
6during the six-month period immediately preceding the order of
7suspension. For purposes of this section, a pattern of deceit, fraud,
8or intentional misconduct in carrying out the duties of a certificate
9holder includes, but is not limited to, the destruction or concealment
10of any records six months immediately preceding the order of
11suspension.
12(iv) At least three claims submitted for ineligible material in
13violation of this division, including, but not limited to, a violation
14of Section 14595.5, during the six-month period immediately
15preceding the order of suspension.
16(B) An order of suspension or probation may be issued to any
17or all certified or registered facilities or programs operated by a
18person or entity that the department determines to be culpable or
19
responsible for the loss or conduct identified pursuant to
20subparagraph (A).
21(C) The order of suspension or issuance of a probationary
22certificate imposing terms or conditions shall become effective
23upon written notice of the order to the certificate holder or
24registrant. Within 20 days after notice of the order of suspension,
25the department shall file an accusation seeking revocation of any
26or all certificates or registrations held by the certificate holder or
27registrant. The certificate holder or registrant may, upon receiving
28the notice of the order of suspension or probation, appeal the order
29by requesting a hearing in accordance with Chapter 5 (commencing
30with Section 11500) of Part 1 of Division 3 of Title 2 of the
31Government Code. A request for a hearing or appeal from an order
32of the department does not stay the action of the department for
33which the notice of the order is given. The department may
34combine hearings to appeal an order of
suspension and a hearing
35for the proposed revocation of a certificate or registration into one
36proceeding.
37(D) begin deleteNothing in this end deletebegin insertThis end insertsectionbegin delete shallend deletebegin insert does notend insert prohibit the
38department from immediately revoking a probationary certificate
39pursuant to subdivision (b) of Section 14541 or from taking other
40disciplinary action pursuant to Section 14591.2.
Section 21080.35 of the Public Resources Code, as
2added by Section 1 of Chapter 534 of the Statutes of 2001, is
3amended and renumbered to read:
For the purposes of Section 21069, the phrase
6“carrying out or approving a project” shall include the carrying
7out or approval of a plan for a project that expands or enlarges an
8existing publicly owned airport by any political subdivision, as
9described in Section 21661.6 of the Public Utilities Code.
Section 21082.3 of the Public Resources Code is
11amended to read:
(a) Any mitigation measures agreed upon in the
13consultation conducted pursuant to Section 21080.3.2 shall be
14recommended for inclusion in the environmental document and
15in an adopted mitigation monitoring and reporting program, if
16determined to avoid or lessen the impact pursuant to paragraph
17(2) of subdivision (b), and shall be fully enforceable.
18(b) If a project may have a significant impact on a tribal cultural
19resource, the lead agency’s environmental document shall discuss
20both of the following:
21(1) Whether the proposed project has a significant impact on
22an identified tribal cultural resource.
23(2) Whether feasible alternatives or
mitigation measures,
24including those measures that may be agreed to pursuant to
25subdivision (a), avoid or substantially lessen the impact on the
26identified tribal cultural resource.
27(c) (1) Any information, including, but not limited to, the
28location, description, and use of the tribal cultural resources, that
29is submitted by a California Native American tribe during the
30environmental review process shall not be included in the
31environmental document or otherwise disclosed by the lead agency
32or any other public agency to the public, consistent with
33subdivision (r) of Section 6254 of, and Section 6254.10 of, the
34Government Code, and subdivision (d) of Section 15120 of Title
3514 of the California Code of Regulations, without the prior consent
36of the tribe that provided the information. If the lead agency
37publishes any information submitted by a California Native
38American tribe during the consultation or environmental review
39
process, that information shall be published in a confidential
40appendix to the environmental document unless the tribe that
P624 1provided the information consents, in writing, to the disclosure of
2some or all of the information to the public. This subdivision does
3not prohibit the confidential exchange of the submitted information
4between public agencies that have lawful jurisdiction over the
5preparation of the environmental document.
6(2) (A) This subdivision does not prohibit the confidential
7exchange of information regarding tribal cultural resources
8submitted by a California Native American tribe during the
9consultation or environmental review process among the lead
10agency, the California Native American tribe, the project applicant,
11or the project applicant’s agent. Except as provided in subparagraph
12(B) or unless the California Native American tribe providing the
13information consents, in writing, to public disclosure, the
project
14applicant or the project applicant’s legal advisers, using a
15reasonable degree of care, shall maintain the confidentiality of the
16information exchanged for the purposes of preventing looting,
17vandalism, or damage tobegin delete aend delete tribal cultural resources and shall not
18disclose to a third party confidential information regarding tribal
19cultural resources.
20(B) This paragraph does not apply to data or information that
21are or become publicly available, are already in the lawful
22possession of the project applicant before the provision of the
23information by the California Native American tribe, are
24independently developed by the project applicant or the project
25applicant’s agents, or are lawfully obtained by the project applicant
26from a third party that is not the lead agency, a California Native
27American tribe, or another public agency.
28(3) This subdivision does not affect or alter the application of
29subdivision (r) of Section 6254 of the Government Code, Section
306254.10 of the Government Code, or subdivision (d) of Section
3115120 of Title 14 of the California Code of Regulations.
32(4) This subdivision does not prevent a lead agency or other
33public agency from describing the information in general terms in
34the environmental document so as to inform the public of the basis
35of the lead agency’s or other public agency’s decision without
36breaching the confidentiality required by this subdivision.
37(d) In addition to other provisions of this division, the lead
38agency may certify an environmental impact report or adopt a
39mitigated negative declaration for a project with a significant
P625 1impact on an identified tribal cultural resource only if one of the
2following
occurs:
3(1) The consultation process between the California Native
4American tribe and the lead agency has occurred as provided in
5Sections 21080.3.1 and 21080.3.2 and concluded pursuant to
6subdivision (b) of Section 21080.3.2.
7(2) The California Native American tribe has requested
8consultation pursuant to Section 21080.3.1 and has failed to provide
9comments to the lead agency, or otherwise failed to engage, in the
10consultation process.
11(3) The lead agency has complied with subdivision (d) of Section
1221080.3.1 and the California Native American tribe has failed to
13request consultation within 30 days.
14(e) If the mitigation measures recommended by the staff of the
15lead agency as a result of the consultation process are not included
16in the environmental
document or if there are no agreed upon
17mitigation measures at the conclusion of the consultation or if
18consultation does not occur, and if substantial evidence
19demonstrates that a project will cause a significant effect to a tribal
20cultural resource, the lead agency shall consider feasible mitigation
21pursuant to subdivision (b) of Section 21084.3.
22(f) Consistent with subdivision (c), the lead agency shall publish
23confidential information obtained from a California Native
24American tribe during the consultation process in a confidential
25appendix to the environmental document and shall include a
26general description of the information, as provided in paragraph
27(4) of subdivision (c) in the environmental document for public
28review during the public comment period provided pursuant to
29this division.
30(g) This section is not intended, and may not be construed, to
31limit consultation
between the state and tribal governments,
32existing confidentiality provisions, or the protection of religious
33exercise to the fullest extent permitted under state and federal law.
Section 30103 of the Public Resources Code is
35amended to read:
(a) “Coastal zone” means that land and water area of
37the State of California from the Oregon border to the border of the
38Republic of Mexico, specified on the maps identified and set forth
39in Section 17 ofbegin delete that chapterend deletebegin insert Chapter 1330end insert of the Statutes ofbegin delete the begin insert 1976,end insert extending
401975-76 Regular Session enacting this division,end delete
P626 1seaward to the state’s outer limit of jurisdiction, including all
2offshore islands, and extending
inland generally 1,000 yards from
3the mean high tide line of the sea. In significant coastal estuarine,
4habitat, and recreational areas it extends inland to the first major
5ridgeline paralleling the sea or five miles from the mean high tide
6line of the sea, whichever is less, and in developed urban areas the
7zone generally extends inland less than 1,000 yards. The coastal
8zone does not include the area of jurisdiction of the San Francisco
9Bay Conservation and Development Commission, established
10pursuant to Title 7.2 (commencing with Section 66600) of the
11Government Code, nor any area contiguous thereto, including any
12river, stream, tributary, creek, or flood control or drainage channel
13flowing into such area.
14(b) The commission shall, within 60 days after its first meeting,
15prepare and adopt a detailed map, on a scale of one inch equals
1624,000 inches for the coastal zone and shall file a copy of the map
17with the county clerk of each coastal
county. The purpose of this
18provision is to provide greater detail than is provided by the maps
19identified in Section 17 ofbegin delete that chapterend deletebegin insert Chapter 1330end insert of the Statutes
20ofbegin delete the 1975-76 Regular Session enacting this division.end deletebegin insert 1976.end insert The
21commission may adjust the inland boundary of the coastal zone
22the minimum landward distance necessary up to a maximum of
23100 yards except as otherwise provided in this subdivision, or the
24minimum distance seaward necessary up to a maximum of 200
25yards, to avoid bisecting any single lot or parcel or to conform it
26to readily identifiable natural or manmade features. Where a
27landward adjustment is requested
by the local government and
28agreed to by the property owner, the maximum distance shall be
29200 yards.
Chapter 1 (commencing with Section 32600) of
31Division 22.8 of the Public Resources Code, as added by Section
321 of Chapter 788 of the Statutes of 1999, is repealed.
33
Section 42356 of the Public Resources Code is
37amended to read:
For purposes of this chapter, the following definitions
39apply:
P627 1(a) “ASTM” means thebegin delete American Society for Testing and begin insert ASTM International.end insert
2Materials.end delete
3(b) (1) “ASTM standard specification” means one of the
4following:
5(A) The ASTM Standard Specification for Compostable Plastics
6D6400, as published in September 2004, except as provided in
7subdivision (c) of Section 42356.1.
8(B) The ASTM
Standard Specification for Non-Floating
9Biodegradable Plastics in the Marine Environment D7081, as
10published in August 2005, except as provided in subdivision (c)
11of Section 42356.1.
12(C) The ASTM Standard Specification for Biodegradable
13Plastics Used as Coatings on Paper and Other Compostable
14Substrates D6868, as published in August 2003, except as specified
15in subdivision (c) of Section 42356.1.
16(2) “ASTM standard specification” does not include an ASTM
17Standard Guide, a Standard Practice, or a Standard Test Method.
18(c) “Department” means the Department of Resources Recycling
19and Recovery.
20(d) “Manufacturer” means a person, firm, association,
21partnership, or corporation that produces a plastic product.
22(e) “OK home compost” means conformity with the existing
23Vincotte certification “OK Compost HOME certification” which,
24as of January 1, 2011, uses European Norm 13432 standard adapted
25to low-temperature composting in accordance with the Vincotte
26program “OK 2-Home Compostability of Products.”
27(f) “Plastic product” means a product made of plastic, whether
28alone or in combination with other material, including, but not
29limited to, paperboard. A plastic product includes, but is not limited
30to, any of the following:
31(1) (A) A consumer product.
32(B) For purposes of this paragraph, “consumer product” means
33a product or part of a product that is used, bought, or leased for
34use by a person for any purpose.
35(2) A package or a packaging component.
36(3) A bag, sack, wrap, or other thin plastic sheet film product.
37(4) A food or beverage container or a container component,
38including, but not limited to, a straw, lid, or utensil.
39(g) “Supplier” means a person who does one or more of the
40following:
P628 1(1) Sells, offers for sale, or offers for promotional purposes, a
2plastic product that is used.
3(2) Takes title to a plastic product, produced either domestically
4or in a foreign country, that is purchased for resale or promotional
5purposes.
6(h) “Vincotte certification” means a
certification of a European
7norm (EN) standard adopted by the Belgian-accredited inspection
8and certification organization Vincotte.
Section 42649.82 of the Public Resources Code is
10amended to read:
(a) (1) In addition to the requirements of Section
1242649.3, on and after January 1, 2016, each jurisdiction shall
13implement an organic waste recycling program that is appropriate
14for that jurisdiction and designed specifically to divert organic
15waste generated by businesses subject to Section 42649.81, whether
16or not the jurisdiction has met the requirements of Section 41780.
17(2) (A) A county board of supervisors of a rural county may
18adopt a resolution, as prescribed in this paragraph, to make the
19rural county exempt from the requirements of this section. If a
20rural jurisdiction is a city, the city council may adopt a resolution,
21as prescribed in this paragraph, to make the rural jurisdiction
22exempt from this section.
If a rural jurisdiction is a regional agency
23comprised of jurisdictions that are located entirely within one or
24more rural counties, the board of the regional agency may adopt
25a resolution, as prescribed in this paragraph, to make the rural
26jurisdictionbegin delete isend delete exempt from the requirements of this section.
27(B) A resolution adopted pursuant to subparagraph (A) shall
28include findings as to the purpose of and need for the exemption.
29(C) A resolution to exempt a rural jurisdiction pursuant to
30subparagraph (A) shall be submitted to the department at least six
31months before the operative date of the exemption.
32(D) On or after January 1, 2020, if the department determines
33that statewide disposal of organic waste has not been reduced to
3450 percent
of the level of disposal during the 2014 calendar year,
35all exemptions authorized by this paragraph shall terminate unless
36the department determines that applying this chapter to rural
37jurisdictions will not result in significant additional reductions of
38disposal of organic waste.
39(b) If a jurisdiction, as of January 1, 2016, has in place an
40organic waste recycling program that meets the requirements of
P629 1this section, it is not required to implement a new or expanded
2organic waste recycling program.
3(c) The organic waste recycling program required by this section
4shall be directed at organic waste generators and may include, but
5is not limited to, one or more of the following:
6(1) Implementing a mandatory commercial organic waste
7recycling policy or ordinance that addresses organic waste
8recycling.
9(2) Requiring a mandatory commercial organic waste recycling
10program through a franchise contract or agreement.
11(3) Requiring organic waste to go through a source separated
12or mixed processing system that diverts material from disposal.
13(d) (1) The organic waste recycling program shall do all of the
14following:
15(A) Identify all of the following:
16(i) Existing organic waste recycling facilities within a reasonable
17vicinity and the capacities available for materials to be accepted
18at each facility.
19(ii) Existing solid waste and organic waste recycling facilities
20within the jurisdiction that may be suitable for
potential expansion
21or colocation of organic waste processing or recycling facilities.
22(iii) Efforts of which the jurisdiction is aware that are underway
23to develop new private or public regional organic waste recycling
24facilities that may serve some or all of the organic waste recycling
25needs of the commercial waste generators within the jurisdiction
26subject to this chapter, and the anticipated timeframe for
27completion of those facilities.
28(iv) Closed or abandoned sites that might be available for new
29organic waste recycling facilities.
30(v) Other nondisposal opportunities and markets.
31(vi) Appropriate zoning and permit requirements for the location
32of new organic waste recycling facilities.
33(vii) Incentives available, if any, for developing new organic
34waste recycling facilities within the jurisdiction.
35(B) Identify barriers to siting new or expanded compostable
36materials handling operations, as defined in paragraph (12) of
37subdivision (a) of Section 17852 ofbegin delete theend delete Title 14 of the California
38Code of Regulations, and specify a plan to remedy those barriers
39that are within the control of the local jurisdiction.
P630 1(C) Provide for the education of, outreach to, and monitoring
2of, businesses. The program shall require the jurisdiction to notify
3a business if the business is not in compliance with Section
442649.81.
5(2) For purposes of subparagraph (A) of paragraph (1), an
6“organic waste recycling facility” shall include
compostable
7materials handling operations, as defined in paragraph (12) of
8subdivision (a) of Section 17852 of Title 14 of the California Code
9of Regulations, and may include other facilities that recycle organic
10waste.
11(e) The organic waste recycling program may include any one
12or more of the following:
13(1) Enforcement provisions that are consistent with the
14jurisdiction’s authority, including a structure for fines and penalties.
15(2) Certification requirements for self-haulers.
16(3) Exemptions, on a case-by-case basis, from the requirements
17of Section 42649.81 that are deemed appropriate by the jurisdiction
18for any of the following reasons:
19(A) Lack of sufficient space in multifamily
complexes or
20businesses to provide additional organic material recycling bins.
21(B) The current implementation by a business of actions that
22result in the recycling of a significant portion of its organic waste.
23(C) The business or group of businesses does not generate at
24least one-half of a cubic yard of organic waste per week.
25(D) Limited-term exemptions for extraordinary and unforeseen
26events.
27(E) (i) The business or group of businesses does not generate
28at least one cubic yard of organic waste per week, if the local
29jurisdiction provides the department with information that explains
30the need for this higher exemption than that authorized by
31subparagraph (C).
32(ii) The information described in clause (i) shall be provided to
33the department with the information provided pursuant to
34subdivision (f).
35(iii) This subparagraph shall not be operative on or after January
361, 2020, if the department, pursuant to paragraph (4) of subdivision
37(a) of Section 42649.81, determines that statewide disposal of
38organic waste has not been reduced to 50 percent of the level of
39disposal during the 2014 calendar year.
P631 1(f) (1) Each jurisdiction shall provide the department with
2information on the number of regulated businesses that generate
3organic waste and, if available, the number that are recycling
4organic waste. The jurisdiction shall include this information as
5part of the annual report required pursuant to Section 41821.
6(2) On and after August 1, 2017, in
addition to the information
7required by paragraph (1), each jurisdiction shall report to the
8department on the progress achieved in implementing its organic
9waste recycling program, including education, outreach,
10identification, and monitoring, on its rationale for allowing
11exemptions, and, if applicable, on enforcement efforts. The
12jurisdiction shall include this information as part of the annual
13report required pursuant to Section 41821.
14(g) (1) The department shall review a jurisdiction’s compliance
15with this section as part of the department’s review required by
16Section 41825.
17(2) The department also may review whether a jurisdiction is
18in compliance with this section at any time that the department
19receives information that a jurisdiction has not implemented, or is
20not making a good faith effort to implement, an organic waste
21recycling program.
22(h) During a review pursuant to subdivision (g), the department
23shall determine whether the jurisdiction has made a good faith
24effort to implement its selected organic waste recycling program.
25For purposes of this section, “good faith effort” means all
26reasonable and feasible efforts by a jurisdiction to implement its
27organic waste recycling program. During its review, the department
28may include, but is not limited to, consideration of the following
29factors in its evaluation of a jurisdiction’s good faith effort:
30(1) The extent to which businesses have complied with Section
3142649.81, including information on the amount of disposal that is
32being diverted from the businesses, if available, and on the number
33of businesses that are complying with Section 42649.81.
34(2) The recovery rate of the organic waste from the material
35
recovery facilities that are utilized by the businesses, all
36information, methods, and calculations, and any additional
37performance data, as requested by the department from the material
38recovery facilities pursuant to Section 18809.4 of Title 14 of the
39California Code of Regulations.
P632 1(3) The extent to which the jurisdiction is conducting education
2and outreach to businesses.
3(4) The extent to which the jurisdiction is monitoring businesses
4and notifying those businesses that are not in compliance.
5(5) The appropriateness of exemptions allowed by the
6jurisdiction.
7(6) The availability of markets for collected organic waste
8recyclables.
9(7) Budgetary constraints.
10(8) In the case of a rural jurisdiction, the effects of small
11geographic size, low population density, or distance to markets.
12(9) The availability, or lack thereof, of sufficient organic waste
13processing infrastructure, organic waste recycling facilities, and
14other nondisposal opportunities and markets.
15(10) The extent to which the jurisdiction has taken steps that
16are under its control to remove barriers to siting and expanding
17organic waste recycling facilities.
Section 42987 of the Public Resources Code is
19amended to read:
(a) (1) A qualified industry association or a successor
21organization may establish a mattress recycling organization for
22purposes of this chapter, which shall be composed of
23manufacturers, renovators, and retailers and be certified pursuant
24to this section to develop, implement, and administer the mattress
25recycling program established pursuant to this chapter.
26(2) Within 60 days of receipt of a request for certification, the
27department shall notify the requesting qualified industry association
28of the department’s decision whether or not to certify that a
29mattress recycling organization has been established by the
30qualified industry association or successor organization and is
31composed of manufacturers, renovators, and retailers for purposes
32of
establishing the mattress recycling plan.
33(3) Prior to certification by the department, the department’s
34director shall appoint an advisory committee to be part of the
35mattress recycling organization.
36(A) The advisory committee may be comprised of members of
37the environmental community, solid waste industry,begin insert andend insert local
38begin delete government, andend deletebegin insert governmentend insert public and private representatives
39involved in the collection, processingbegin insert,end insert and recycling of used
40mattresses, and other interested
parties.
P633 1(B) The mattress recycling organization shall consult the
2advisory committee at least once during the development and
3implementation of the plan required pursuant to Section 42987.1,
4and annually prior to the submittal of both an annual report required
5pursuant to Section 42990.1 and an annual budget required pursuant
6to Section 42988.
7(b) (1) Each manufacturer, retailer, and renovator shall register
8with the mattress recycling organization.
9(2) A retailer may register with the mattress recycling
10organization as a manufacturer for a brand for which there is not
11a registered manufacturer.
12(c) On and after January 1, 2016, a retailer shall not sell,
13distribute, or offer for sale a mattress in the state unless the retailer
14is
in compliance with this chapter and the manufacturer or
15renovator of the mattress sold by the retailer is listed in compliance
16with this chapter.
17(d) On and after January 1, 2016, a manufacturer or renovator
18shall not sell, offer for sale, or import a mattress in this state, or
19sell or distribute a mattress to a distributor or retailer, unless the
20manufacturer or renovator is in compliance with this chapter.
Section 42987.1 of the Public Resources Code is
22amended to read:
On or before July 1, 2015, the mattress recycling
24organization shall develop and submit to the department a plan for
25recycling used mattresses in the state in an economically efficient
26and practical manner that includes all of the following goals and
27elements:
28(a) Program objectives consistent with the state’s solid waste
29management hierarchy.
30(b) The names of manufacturers, renovators, and brands covered
31under the plan.
32(c) A consultation process with affected stakeholders, including,
33but not limited to, local government representatives, recyclers, and
34solid waste industry representatives.
35(d) Methods to increase the number of used mattresses diverted
36from landfills, reduce the number of illegally dumped used
37mattresses, and increase the quantity of used materials recovered
38through this process and recycled for other uses.
P634 1(e) (1) The establishment and administration of a means for
2funding the plan in a manner that distributes the mattress recycling
3organization’s costs uniformly over all mattresses sold in the state.
4(2) The funding mechanism shall provide sufficient funding for
5the mattress recycling organization to carry out the plan, including
6the administrative, operational, and capital costs of the plan.
7(f) The publishing of an annual report for each calendar year of
8operation.
9(g) Conducting
research, as needed, related to improving used
10mattress collection, dismantling, and recycling operations,
11including pilot programs to test new processes, methods, or
12equipment on a local, regional, or otherwise limited basis.
13(h) A program performance measurement that shall collect
14program data for the purpose of the annual report. The information
15shall include:
16(1) A methodology for estimating the amount of mattresses sold
17in thebegin delete state,end deletebegin insert state andend insert used mattresses available for collection in
18the state, and for quantifying the number of used mattresses
19collected and recycled in the state.
20(2) A methodology for determining
mattresses sold in the state
21by the manufacturers and renovators of the mattress recycling
22organization.
23(i) A description of methods used to coordinate activities with
24existing used mattress collecting and recycling programs, including
25existing nonprofit mattress recyclers, and with other relevant parties
26as appropriate, with regard to the proper management or recycling
27of discarded or abandoned mattresses, for purposes of providing
28the efficient delivery of services and avoiding unnecessary
29duplication of effort and expense.
30(j) Entering into contracts or agreements, which may include
31contracts and agreements with existing nonprofit or for-profit
32recyclers, that are necessary and proper for the mattress recycling
33organization to carry out these duties consistent with the terms of
34this chapter.
35(k) begin deleteEstablishment of end deletebegin insertEstablishing
end inserta financial incentive to
36encourage parties to collect for recycling used mattresses discarded
37or illegally dumped in the state.
38(l) Ensuring, to the maximum extent possible, that urban and
39rural local governments and participating permitted solid waste
40facilities and authorized solid waste operations that accept
P635 1mattresses are provided with a mechanism for the recovery of
2illegally disposed used mattresses that is funded at no additional
3cost to the local government, solid waste facility, or solid waste
4operation.
5(m) Developing processes to collect used mattresses from
6low-income communities for recycling in accordance with the
7poverty line annually established by the Secretary of California
8Health and Human Services pursuant to the federal Omnibus
9Budget Reconciliation Act of 1981 (Public Law 97-35), as
10amended.
11(n) Providing outreach efforts and education to consumers,
12manufacturers, and retailers, for the purpose of promoting the
13recycling of used mattresses and options available to consumers
14for the free dropoff of used mattresses.
15(o) A provision that allows an individual to drop off, at no
16charge, a mattress at a recycler, renovator, mattress recycling
17center, permitted solid waste facility, authorized solid waste
18operation, or other municipal facility that accepts mattresses
19consistent with state solid waste regulations, and that provides for
20the payment to a municipal or solid waste facility or operation that
21accepts mattresses an amount determined by the municipal or solid
22waste facility or operation and the mattress recycling organization
23to be reasonable for accepting, collecting, storing, transporting,
24and handling used mattresses.
25(p) Ensuring that the impact of Article XIII C of the California
26Constitution is addressed for local governments participating in
27the program.
28(q) A report from the advisory committee, established pursuant
29to paragraph (3) of subdivision (a) of Section 42987,begin delete whichend deletebegin insert thatend insert
30 includes a summary of the consultative process between the
31advisory committee and the mattress recycling organization during
32the development of the plan, as well as any other information
33deemed pertinent by the advisory committee to maximizing the
34recovery and recycling of used mattresses in the state.
35(r) Other information requested by the department that is
36
reasonably related to compliance with the recycling plan and that
37the organization can reasonably compile.
Section 42989.1 of the Public Resources Code is
39amended to read:
(a) Commencing 90 days after the date the department
2approves the budget pursuant to Section 42988.1, each
3manufacturer, renovator, retailer, or distributor that sells a mattress
4to a consumer or to the ultimate end user of the mattress in the
5state shall add the charge to the purchase price of the mattress and
6shall remit the charge collected to the mattress recycling
7organization.
8(b) In each transaction described in subdivision (a), the charge
9shall be clearly visiblebegin insert as a separate line itemend insert on the invoice,
10receipt, or functionally equivalent billing document provided by
11the seller to the consumerbegin delete as a separate line itemend delete.
12(c) The mattress recycling organization shall develop
13reimbursement criteria to enable retailers to recover administrative
14costs associated with collecting the charge.
15(d) The mattress recycling organization shall determine the rules
16and procedures that are necessary and proper to implement the
17collection of the charge in a fair, efficient, and lawful manner.
Section 44107 of the Public Resources Code is
19amended to read:
(a) A solid waste facility, as defined in Section 40194,
21sending materials to a biomass conversion facility, shall ensure
22that the materials are limited to those listed in subdivision (a) of
23Section 40106. The enforcement agency may inspect solid waste
24facilities and operations for compliance with this section.
25(b) On or before April 1, 2016, and on or before April 1 of each
26year thereafter, the operator or owner of a biomass conversion
27facility shall provide an annual report to the department, in writing,
28for the preceding year, containing all of the following information:
29(1) The name, address, and telephone number of the facility,
30the operator, and the owner.
31(2) The total amount and type of material accepted by the
32facility.
33(3) The name and address, or the physical location, of the source
34of each type of material accepted by the facility. A facility that
35cannot provide the name and address, or the physical location, of
36a source of material accepted by the facility shall provide an
37explanation why the information is not available.
38(4) The total amount and type of material that was rejected by
39the facility.
P637 1(5) The name and address, or physical location, of the source
2of each type of material rejected by the facility and the reasons for
3the rejection. A facility that cannot provide the name and address,
4or the physical location, of a source of material rejected by the
5facility shall provide an explanation why
the information is not
6available.
7(6) The name and address, or physical location, of the final end
8user of ash or other byproducts produced by the facility. Until
9January 1, 2017, a facility that cannot provide the name and
10address, or physical location, of the final end user of ash or
11byproducts shall provide an explanation why that information is
12not available.
13(7) Signatures of the operator and owner of the facility certifying
14the accuracy of the information provided under the penalty of
15perjury.
16(8) Any other information that is necessary for the department
17to determine the accuracy of the information provided pursuant to
18this subdivision.
19(c) To the extent that information specified in subdivision (b)
20has previously been submitted by the owner or
operator of a
21biomass conversion facilitybegin insert in reportsend insert to another state agency or
22instrument of a state agency, the owner or operator of the facility
23may submit those reports to the departmentbegin insert in satisfaction of the
24requirements of subdivision (b) regarding that informationend insert.
25Information required by subdivision (b) and not contained in the
26previously submitted reports shall be provided separately to the
27department.
28(d) Ifbegin delete anyend delete information provided by a biomass conservation
29facility pursuant to this section is designated as confidential, the
30department shall treat that information in accordance with Section
3140062 and its implementing
regulations.
Section 75220 of the Public Resources Code is
33amended to read:
(a) The Transit and Intercity Rail Capital Program is
35hereby created to fund capital improvements and operational
36investments that will reduce greenhouse gas emissions, modernize
37California’s intercity, commuter, and urban rail systems to achieve
38all of the following policy objectives:
39(1) Reduce greenhouse gas emissions.
40(2) Expand and improve rail service to increase ridership.
P638 1(3) Integrate the rail service of the state’s various rail operators,
2including integration with the high-speed rail system.
3(4) Improve rail safety.
4(b) The Transportation Agency shall evaluate applications for
5funding under the program consistent with the criteria set forth in
6thisbegin delete chapterend deletebegin insert
partend insert and prepare a list of projects recommended for
7funding. The list may be revised at any time.
8(c) The California Transportation Commission shall award
9grants to applicants pursuant to the list prepared by the
10Transportation Agency.
Section 765 of the Public Utilities Code is amended
12to read:
(a) When the federal National Transportation Safety
14Board (NTSB) submits a safety recommendation letter concerning
15rail safety to the commission, the commission shall provide the
16NTSB with a formal written response to each recommendation no
17later than 90 days after receiving the letter. The response shall
18state one of the following:
19(1) The commission’s intent to implement the recommendations
20in full, with a proposed timetable for implementation of the
21recommendations.
22(2) The commission’s intent to implement part of the
23recommendations, with a proposed timetable for implementation
24of those recommendations, and detailed reasons for the
25commission’s refusal to implement those recommendations that
26the
commission does not intend to implement.
27(3) The commission’s refusal to implement the
28recommendations, with detailed reasons for the commission’s
29refusal to implement the recommendations.
30(b) If the NTSB issues a safety recommendation letter
31concerning any commission-regulated rail facility to the United
32States Department of Transportation, the Federal Transit
33Administration,begin delete toend delete a commission-regulated rail operator, orbegin delete toend delete the
34commission, or if the Federal Transit Administration issues a safety
35advisory concerning any commission-regulated rail facility, the
36commission shall determine if implementation of the
37recommendation or advisory is appropriate. The basis for the
38commission’s determination shall be detailed in
writing and shall
39be approved by a majority vote of the commission.
P639 1(c) If the commission determines that a safety recommendation
2made by the NTSB is appropriate, or that action concerning a
3safety advisory is necessary, the commission shall issue orders or
4adopt rules to implement the safetybegin delete recommendationsend delete
5begin insert recommendationend insert or advisory as soon as practicable. In
6implementing the safety recommendation or advisory, the
7commission shall consider whether a more effective, or equally
8effective and less costly, alternative exists to address the safety
9issue that the recommendation or advisory addresses.
10(d) begin deleteAny end deletebegin insertAn
end insertaction taken by the commission on a safety
11recommendation letter or safety advisory shall be reported
12annually, in detail, to the Legislature with the report required by
13Section 321.6.begin delete Any correspondenceend deletebegin insert Correspondenceend insert from the
14NTSB indicating that a recommendation has been closed following
15an action that the NTSB finds unacceptable shall be noted in the
16report required by Section 321.6.
Section 957 of the Public Utilities Code, as added
18by Section 2 of Chapter 519 of the Statutes of 2011, is repealed.
(a) (1) Unless the commission determines that it is
20prohibited from doing so by Section 60104(c) of Title 49 of the
21United States Code, the commission shall require the installation
22of automatic shutoff or remote controlled sectionalized block valves
23on both of the following facilities, if it determines those valves are
24necessary for the protection of the public:
25(A) Intrastate transmission lines that are located in a high
26consequence area.
27(B) Intrastate transmission lines that traverse an active seismic
28earthquake fault.
29(2) Each owner or operator of a
commission-regulated gas
30pipeline facility that is an intrastate transmission line shall provide
31the commission with a valve location plan, along with any
32recommendations for valve locations. The commission may make
33modifications to the valve location plan or provide for variations
34from any location requirements adopted by the commission
35pursuant to this section that it deems necessary or appropriate and
36consistent with protection of the public.
37(3) The commission shall additionally establish action timelines,
38adopt standards for how to prioritize installation of automatic
39shutoff or remote controlled sectionalized block valves pursuant
40to paragraph (1), ensure that remote and automatic shutoff valves
P640 1are installed as quickly as is reasonably possible, and establish
2ongoing procedures for monitoring progress in achieving the
3requirements of this section.
4(b) The commission shall
authorize recovery in rates for all
5reasonably incurred costs incurred for implementation of the
6requirements of this section.
7(c) The commission, in consultation with the Pipeline and
8Hazardous Materials Safety Administration of the United States
9Department of Transportation, shall adopt and enforce compatible
10safety standards for commission-regulated gas pipeline facilities
11that the commission determines should be adopted to implement
12the requirements of this section.
Section 960 of the Public Utilities Code is amended
14to read:
(a) When the federal National Transportation Safety
16Board (NTSB) submits a safety recommendation letter concerning
17gas pipeline safety to the commission, the commission shall provide
18the NTSB with a formal written response to each recommendation
19not later than 90 days after receiving the letter. The response shall
20state one of the following:
21(1) The commission’s intent to implement the recommendations
22in full, with a proposed timetable for implementation of the
23recommendations.
24(2) The commission’s intent to implement part of the
25recommendations, with a proposed timetable for implementation
26of those recommendations, and detailed reasons for the
27commission’s refusal to implement those recommendations that
28
the commission does not intend to implement.
29(3) The commission’s refusal to implement the
30recommendations, with detailed reasons for the commission’s
31refusal to implement the recommendations.
32(b) If the NTSB issues a safety recommendation letter
33concerning any commission-regulated gas pipeline facility to the
34United States Department of Transportation, the federal Pipeline
35and Hazardous Materials Safety Administration (PHMSA), a gas
36corporation, orbegin delete toend delete the commission, or the PHMSA issues an
37advisory bulletin concerning any commission-regulated gas
38pipeline facility, the commission shall determine if implementation
39of the recommendation or advisory is appropriate. The basis for
P641 1the commission’s determination shall be detailed in writing and
2shall be approved by a majority vote of the commission.
3(c) If the commission determines that a safety recommendation
4made by the NTSB is appropriate or that action concerning an
5advisory bulletin is necessary, the commission shall issue orders
6or adopt rules to implement the safetybegin delete recommendationsend delete
7begin insert recommendationend insert or advisory as soon as practicable. In
8implementing the safety recommendation or advisory, the
9commission shall consider whether a more effective, or equally
10effective and less costly, alternative exists to address the safety
11issue that the recommendation or advisory addresses.
12(d) begin deleteAny end deletebegin insertAn
end insertaction taken by the commission on a safety
13recommendation letter or advisory bulletin shall be reported
14annually, in detail, to the Legislature with the report required by
15Section 321.6.begin delete Any correspondenceend deletebegin insert Correspondenceend insert from the
16NTSB that indicates that a recommendation of the NTSB has been
17closed following an action that the NTSB finds unacceptable shall
18be noted in the report required by Section 321.6.
Section 5384.2 of the Public Utilities Code, as added
20by Section 2 of Chapter 649 of the Statutes of 2008, is amended
21and renumbered to read:
A school, school district, or the state is not liable for
24transportation services provided by an operator of a charter-party
25carrier operating a motor vehicle as specified in subdivision (k)
26of Section 545 of the Vehicle Code for which the school or school
27district has not contracted, arranged, or otherwise provided.
Section 120260 of the Public Utilities Code is
29amended to read:
The board shall provide input to the San Diego
31Association of Governments on the planning and construction of
32exclusive public mass transit guideways in the area under its
33jurisdiction in conformance with the California Transportation
34Plan and the regional transportation plan developed pursuant to
35Chapter 2.5 (commencing with Sectionbegin delete 65080.1)end deletebegin insert 65080)end insert of
36Division 1 of Title 7 of the Government Code.
The heading of Article 5 (commencing with Section
38125300) of Chapter 4 of Division 11.5 of the Public Utilities Code
39 is repealed.
P642 1
Section 125450 of the Public Utilities Code, as
5added by Section 7 of Chapter 990 of the Statutes of 1993, is
6repealed.
A violation of any ordinance, rule, or regulation
8enacted by the board relating to the nonpayment of a fare in any
9transit facility owned or controlled by the board shall be an
10infraction punishable by a fine not exceeding seventy-five dollars
11($75), except that a violation by a person, after the second
12conviction under this section, shall be a misdemeanor punishable
13by a fine not exceeding five hundred dollars ($500) or by
14imprisonment in the county jail not exceeding six months, or by
15both that fine and imprisonment.
Section 125500 of the Public Utilities Code, as
17added by Chapter 1188 of the Statutes of 1975, is repealed.
This chapter shall become operative on the date the
19board first begins to operate a public transit system pursuant to
20Section 125105.
Section 54 of the Revenue and Taxation Code is
22repealed.
(a) Notwithstanding any other provision of law, no
24modification of assessment procedures shall be made with respect
25to real property on the basis of the invalidity of any portion of
26Section 2 of Article XIII A of the California Constitution as
27determined by the United States Supreme Court in the case of
28Nordlinger v. Hahn.
29(b) This section shall only be operative if the United States
30Supreme Court, in its decision in the case of Nordlinger v. Hahn,
31determines that any portion of Section 2 of Article XIII A of the
32California Constitution is invalid, and shall, in that event, absent
33a shorter period specified by the Legislature by statute, be operative
34for only two years from the date of that decision.
Section 196.91 of the Revenue and Taxation Code,
36as added by Section 1 of Chapter 3 of the First Extraordinary
37Session of the Statutes of 1995, is repealed.
In the 1994-95 fiscal year, or as soon as possible
39thereafter, the county auditor of an eligible county, proclaimed by
40the Governor to be in a state of disaster as a result of storm,
P643 1flooding, or any other related casualty that occurred in the county
2in 1995, shall certify to the Director of Finance an estimate of the
3total amount of the reduction in property tax revenues on both the
4regular secured roll and the supplemental roll for that fiscal year
5resulting from the reassessment of eligible properties by the county
6assessor pursuant to Section 170, except that the amount certified
7shall not include any estimated property tax revenue reductions to
8school districts (other than basic state aid school districts) and
9county offices of education. For purposes of this section, “basic
10state aid school district” means any school district that does not
11receive a state apportionment pursuant to subdivision (h) of Section
1242238 of the Education Code, but receives from the state only a
13basic apportionment pursuant to Section 6 of Article IX of the
14California Constitution.
Section 196.91 of the Revenue and Taxation Code,
16as added by Section 1 of Chapter 4 of the First Extraordinary
17Session of the Statutes of 1995, is repealed.
In the 1994-95 fiscal year, or as soon as possible
19thereafter, the county auditor of an eligible county, proclaimed by
20the Governor to be in a state of disaster as a result of storm,
21flooding, or any other related casualty that occurred in the county
22in 1995, shall certify to the Director of Finance an estimate of the
23total amount of the reduction in property tax revenues on both the
24regular secured roll and the supplemental roll for that fiscal year
25resulting from the reassessment of eligible properties by the county
26assessor pursuant to Section 170, except that the amount certified
27shall not include any estimated property tax revenue reductions to
28school districts (other than basic state aid school districts) and
29county offices of education. For purposes of this section, “basic
30state aid school district” means any school district that does not
31receive a state apportionment pursuant to subdivision (h) of Section
3242238 of the Education Code, but receives from the state only a
33basic apportionment pursuant to Section 6 of Article IX of the
34California Constitution.
Section 196.92 of the Revenue and Taxation Code,
36as added by Section 2 of Chapter 3 of the First Extraordinary
37Session of the Statutes of 1995, is repealed.
After the county auditor of an eligible county, as
39described in Section 196.91, has made the applicable certification
40to the Director of Finance pursuant to Section 196.91, the director
P644 1shall, within 30 days after verification of the county auditor’s
2estimate, certify this amount to the Controller for allocation to the
3county. Upon receipt of certification from the Director of Finance,
4the Controller shall make the appropriate allocation to the county
5within 10 working days thereafter.
Section 196.92 of the Revenue and Taxation Code,
7as added by Section 2 of Chapter 4 of the First Extraordinary
8Session of the Statutes of 1995, is repealed.
After the county auditor of an eligible county, as
10described in Section 196.91, has made the applicable certification
11to the Director of Finance pursuant to Section 196.91, the director
12shall, within 30 days after verification of the county auditor’s
13estimate, certify this amount to the Controller for allocation to the
14county. Upon receipt of certification from the Director of Finance,
15the Controller shall make the appropriate allocation to the county
16within 10 working days thereafter.
Section 441 of the Revenue and Taxation Code is
18amended to read:
(a) Each person owning taxable personal property, other
20than a manufactured home subject to Part 13 (commencing with
21Section 5800), having an aggregate cost of one hundred thousand
22dollars ($100,000) or more for any assessment year shall file a
23signed property statement with the assessor. Every person owning
24personal property that does not require the filing of a property
25statement or real property shall, upon request of the assessor, file
26a signed property statement. Failure of the assessor to request or
27secure the property statement does not render any assessment
28invalid.
29(b) The property statement shall be declared to be true under
30the penalty of perjury and filed annually with the assessor between
31the lien date and 5 p.m. on April 1. The penalty provided by
Section
32463 applies for property statements not filed by May 7. If May 7
33falls on a Saturday, Sunday, or legal holiday, a property statement
34that is mailed and postmarked on the next business day shall be
35deemed to have been filed between the lien date and 5 p.m. on
36May 7. If, on the dates specified in this subdivision, the county’s
37offices are closed for the entire day, that day is considered a legal
38holiday for purposes of this section.
39(c) The property statement may be filed with the assessor
40through the United States mail, properly addressed with postage
P645 1prepaid. For purposes of determining the date upon which the
2property statement is deemed filed with the assessor, the date of
3postmark as affixed by the United States Postal Service, or the
4date certified by a bona fide private courier service on the envelope
5containing the application, shall control. This subdivisionbegin delete shall be begin insert
appliesend insert to every taxing agency, including, but not limited
6applicableend delete
7to, a chartered city and county, or chartered city.
8(d) (1) At any time, as required by the assessor for assessment
9purposes, every person shall make available for examination
10information or records regarding his or her property or any other
11personal property located on premises he or she owns or controls.
12In this connection details of property acquisition transactions,
13construction and development costs, rental income, and other data
14relevant to the determination of an estimate of value are to be
15considered as information essential to the proper discharge of the
16assessor’s duties.
17(2) (A) This subdivisionbegin delete shallend delete alsobegin delete applyend deletebegin insert
appliesend insert to an
18owner-builder or an owner-developer of new construction that is
19sold to a third party, is constructed on behalf of a third party, or is
20constructed for the purpose of selling that property to a third party.
21(B) The owner-builder or owner-developer of new construction
22described in subparagraph (A), shall, within 45 days of receipt of
23a written request by the assessor for information or records, provide
24the assessor with all information and records regarding that
25property. The information and records provided to the assessor
26shall include the total consideration provided either by the
27purchaser or on behalf of the purchaser that was paid or provided
28either, as part of or outside of the purchase agreement, including,
29but not limited to, consideration paid or provided for the purchase
30or acquisition of upgrades, additions, or for any other additional
31or supplemental work performed or arranged for
by the
32owner-builder or owner-developer on behalf of the purchaser.
33(e) In the case of a corporate owner of property, the property
34statement shall be signed either by an officer of the corporation or
35an employee or agent who has been designated in writing by the
36board of directors to sign the statements on behalf of the
37corporation.
38(f) In the case of property owned by a bank or other financial
39institution and leased to an entity other than a bank or other
P646 1financial institution, the property statement shall be submitted by
2the owner bank or other financial institution.
3(g) The assessor may refuse to accept any property statement
4he or she determines to be in error.
5(h) If a taxpayer fails to provide information to the assessor
6pursuant to subdivision
(d) and introduces any requested materials
7or information at any assessment appeals board hearing, the
8assessor may request and shall be granted a continuance for a
9reasonable period of time. The continuance shall extend the
10two-year period specified in subdivision (c) of Section 1604 for a
11period of time equal to the period of the continuance.
12(i) Notwithstanding any other provision of law, every person
13required to file a property statement pursuant to this section shall
14be permitted to amend that property statement until May 31 of the
15year in which the property statement is due, for errors and
16omissions not the result of willful intent to erroneously report. The
17penalty authorized by Section 463 does not apply to an amended
18statement received prior to May 31, provided the original statement
19is not subject to penalty pursuant to subdivision (b). The amended
20property statement shall otherwise conform to the requirements
21of a property statement
as provided in this article.
22(j) This subdivisionbegin delete shall applyend deletebegin insert appliesend insert to the oil, gas, and
23mineral extraction industry only. Any information that is necessary
24to file a true, correct, and complete statement shall be made
25available by the assessor, upon request, to the taxpayer by mail or
26at the office of the assessor by February 28. For each business day
27beyond February 28 that the information is unavailable, the filing
28deadline in subdivision (b) shall be extended in that county by one
29business day, for those statements affected by the delay. In no case
30shall the filing deadline be extended beyond June 1 or the first
31business day thereafter.
32(k) The assessor may accept the filing of a
property statement
33by the use of electronic media. In lieu of the signature required by
34subdivision (a) and the declaration under penalty of perjury
35required by subdivision (b), property statements filed using
36electronic media shall be authenticated pursuant to methods
37specified by the assessor and approved by the board. Electronic
38media includes, but is not limited to, computer modem, magnetic
39media, optical disk, and facsimile machine.
P647 1(l) (1) After receiving the notice required by Section 1162, the
2manager in control of a fleet of fractionally owned aircraft shall
3file with the lead county assessor’s office one signed property
4statement for all of its aircraft that have acquired situs in the state,
5as described in Section 1161.
6(2) Flight data required to compute fractionally owned aircraft
7allocation under Section 1161 shall be segregated by airport.
8(m) (1) After receiving the notice required by paragraph (5) of
9subdivision (b) of Section 1153.5, a commercial air carrier whose
10certificated aircraft is subject to Article 6 (commencing with
11Section 1150) of Chapter 5 shall file with the lead county assessor’s
12office designated under Section 1153.5 one signed property
13statement for its personal property at all airport locations and
14fixtures at all airport locations.
15(2) Each commercial air carrier may file one schedule for all of
16its certificated aircraft that have acquired situs in this state under
17Section 1151.
18(3) Flight data required to compute certificated aircraft allocation
19under Section 1152 and subdivision (g) of Section 202 of Title 18
20of the California Code of Regulations shall be segregated by airport
21location.
22(4) Beginning with the 2006 assessment year, a commercial air
23carrier may file a statement described in this subdivision
24electronically by means of the California Assessor’s Standard Data
25Record (SDR) network. If the SDR is not equipped to accept
26electronic filings for the 2006 assessment year, an air carrier may
27file a printed version of its property statement for that year with
28its lead county assessor’s office.
29(5) This subdivision shallbegin delete remain in effect only untilend deletebegin insert become
30inoperative onend insert December 31, 2015begin delete, and as of that date is repealedend delete.
Section 6051.7 of the Revenue and Taxation Code
32 is repealed.
(a) In addition to the taxes imposed by Section 6051
34and any other provision of this part, for the privilege of selling
35tangible personal property at retail, a tax is hereby imposed upon
36all retailers at the rate of 1 percent of the gross receipts of any
37retailer from the sale of all tangible personal property sold at retail
38in this state, on and after April 1, 2009.
39(b) This section shall cease to be operative on July 1, 2011,
40
unless the Director of Finance makes the notification pursuant to
P648 1Section 99040 of the Government Code, in which case this section
2shall cease to be operative on July 1, 2012.
The heading of Article 1.5 (commencing with
4Section 7063) of Chapter 8 of Part 1 of Division 2 of the Revenue
5and Taxation Code, as added by Section 1 of Chapter 443 of the
6Statutes of 1999, is repealed.
7
Chapter 3.5 (commencing with Section 7288.1) of
11Part 1.7 of Division 2 of the Revenue and Taxation Code, as added
12by Section 2 of Chapter 14 of the 1st Extraordinary Session of the
13Statutes of 1991, is repealed.
The heading of Part 5.5 (commencing with Section
1511151) of Division 2 of the Revenue and Taxation Code, as added
16by Section 1 of Chapter 966 of the Statutes of 1993, is amended
17and renumbered to read:
18
Section 17053.34 of the Revenue and Taxation Code
22 is amended to read:
(a) For each taxable year beginning on or after
24January 1, 1998, there shall be allowed a credit against the “net
25tax” (as defined in Section 17039) to a qualified taxpayer who
26employs a qualified employee in a targeted tax area during the
27taxable year. The credit shall be equal to the sum of each of the
28following:
29(1) Fifty percent of qualified wages in the first year of
30employment.
31(2) Forty percent of qualified wages in the second year of
32employment.
33(3) Thirty percent of qualified wages in the third year of
34employment.
35(4) Twenty percent of qualified wages in the
fourth year of
36employment.
37(5) Ten percent of qualified wages in the fifth year of
38employment.
39(b) For purposes of this section:
40(1) “Qualified wages” means:
P649 1(A) That portion of wages paid or incurred by the qualified
2taxpayer during the taxable year to qualified employees that does
3not exceed 150 percent of the minimum wage.
4(B) Wages received during the 60-month period beginning with
5the first day the employee commences employment with the
6qualified taxpayer. Reemployment in connection with any increase,
7including a regularly occurring seasonal increase, in the trade or
8business operations of the qualified taxpayer does not constitute
9commencement of employment for purposes of this
section.
10(C) Qualified wages do not include any wages paid or incurred
11by the qualified taxpayer on or after the targeted tax area expiration
12date. However, wages paid or incurred with respect to qualified
13employees who are employed by the qualified taxpayer within the
14targeted tax area within the 60-month period prior to the targeted
15tax area expiration date shall continue to qualify for the credit
16under this section after the targeted tax area expiration date, in
17accordance with all provisions of this section applied as if the
18targeted tax area designation were still in existence and binding.
19(2) “Minimum wage” means the wage established by the
20Industrial Welfare Commission as provided for in Chapter 1
21(commencing with Section 1171) of Part 4 of Division 2 of the
22Labor Code.
23(3) “Targeted tax area expiration date”
means the date the
24targeted tax area designation expires, is revoked, is no longer
25binding, becomes inoperative, or is repealed.
26(4) (A) “Qualified employee” means an individual who meets
27all of the following requirements:
28(i) At least 90 percent of his or her services for the qualified
29taxpayer during the taxable year are directly related to the conduct
30of the qualified taxpayer’s trade or business located in a targeted
31tax area.
32(ii) Performs at least 50 percent of his or her services for the
33qualified taxpayer during the taxable year in a targeted tax area.
34(iii) Is hired by the qualified taxpayer after the date of original
35designation of the area in which services were performed as a
36targeted tax area.
37(iv) Is any of the following:
38(I) Immediately preceding the qualified employee’s
39commencement of employment with the qualified taxpayer, was
40a person eligible for services under the federal Job Training
P650 1Partnership Act (29 U.S.C. Sec. 1501 et seq.), or its successor,
2who is receiving, or is eligible to receive, subsidized employment,
3training, or services funded by the federal Job Training Partnership
4Act, or its successor.
5(II) Immediately preceding the qualified employee’s
6commencement of employment with the qualified taxpayer, was
7a person eligible to be a voluntary or mandatory registrant under
8the Greater Avenues for Independence Act of 1985 (GAIN)
9provided for pursuant to Article 3.2 (commencing with Section
1011320) of Chapter 2 of Part 3 of Division 9 of the Welfare and
11Institutions Code, or its successor.
12(III) Immediately preceding the qualified employee’s
13commencement of employment with the qualified taxpayer, was
14an economically disadvantaged individual 14 years of age or older.
15(IV) Immediately preceding the qualified employee’s
16commencement of employment with the qualified taxpayer, was
17a dislocated worker who meets any of the following:
18(aa)
end delete
19begin insert(ia)end insert Has been terminated or laid off or who has received a notice
20of termination or layoff from employment, is eligible for or has
21exhausted entitlement to unemployment insurance benefits, and
22is unlikely to
return to his or her previous industry or occupation.
23(bb)
end delete
24begin insert(ib)end insert Has been terminated or has received a notice of termination
25of employment as a result of any permanent closure or any
26substantial layoff at a plant, facility, or enterprise, including an
27individual who has not received written notification but whose
28employer has made a public announcement of the closure or layoff.
29(cc)
end delete
30begin insert(ic)end insert Is long-term unemployed and has limited opportunities for
31employment or reemployment in the same or a similar occupation
32in the area in which the individual resides, including an individual
3355 years of age or older who may have substantial barriers to
34employment by reason of age.
35(dd)
end delete
36begin insert(id)end insert Was self-employed (including farmers and ranchers) and
37is unemployed as a result of general economic conditions in the
38community in which he or she resides or because of natural
39disasters.
40(ee)
end delete
P651 1begin insert(ie)end insert Was a civilian employee of the Department of Defense
2employed at a military installation being closed or realigned under
3the Defense Base Closure and Realignment Act of 1990.
4(ff)
end delete
5begin insert(if)end insert Was an active member of the Armed Forces or National
6Guard as of September 30, 1990, and was either involuntarily
7separated or separated pursuant to a special benefits program.
8(gg)
end delete
9begin insert(ig)end insert Is a seasonal or migrant worker who experiences chronic
10seasonal unemployment and underemployment in the agriculture
11industry, aggravated by continual advancements in technology and
12mechanization.
13(hh)
end delete
14begin insert(ih)end insert Has been terminated or laid off, or has received a notice of
15termination or layoff, as a consequence of compliance with the
16Clean Air Act.
17(V) Immediately preceding the qualified employee’s
18commencement of employment with the qualified
taxpayer, was
19a disabled individual who is eligible for or enrolled in, or has
20completed a state rehabilitation plan or is a service-connected
21disabled veteran, veteran of the Vietnam era, or veteran who is
22recently separated from military service.
23(VI) Immediately preceding the qualified employee’s
24commencement of employment with the qualified taxpayer, was
25an ex-offender. An individual shall be treated as convicted if he
26or she was placed on probation by a state court without a finding
27of guilty.
28(VII) Immediately preceding the qualified employee’s
29commencement of employment with the qualified taxpayer, was
30a person eligible for or a recipient of any of the following:
31(aa)
end delete32begin insert(ia)end insert Federal Supplemental Security Income benefits.
33(bb)
end delete34begin insert(ib)end insert Aid to Families with Dependent Children.
35(cc)
end delete36begin insert(ic)end insert CalFresh benefits.
37(dd)
end delete38begin insert(id)end insert State and local general assistance.
39(VIII) Immediately preceding the qualified employee’s
40commencement of employment with the qualified taxpayer, was
P652 1a member of a federally recognized Indian tribe, band, or other
2group of Native American descent.
3(IX) Immediately preceding the qualified employee’s
4commencement of employment with the qualified taxpayer, was
5a resident of a targeted tax area.
6(X) Immediately preceding the qualified employee’s
7commencement of employment with the taxpayer, was a member
8of a targeted group as defined in Section 51(d) of the Internal
9Revenue Code, or its successor.
10(B) Priority for employment shall be provided to an individual
11who is enrolled in a qualified program under the federal Job
12Training Partnership Act or the Greater Avenues for Independence
13Act of 1985 or who is eligible as a member of a targeted group
14under the Work Opportunity Tax Credit (Section 51 of the Internal
15Revenue Code), or its successor.
16(5) (A) “Qualified taxpayer” means a person or entity that meets
17both of the following:
18(i) Is engaged in a trade or business within a targeted tax area
19designated pursuant to Chapter 12.93 (commencing with Section
207097) of Division 7 of Title 1 of the Government Code.
21(ii) Is engaged in those lines of business described in Codes
222000 to 2099, inclusive; 2200 to 3999, inclusive; 4200 to 4299,
23inclusive; 4500 to 4599, inclusive; and 4700
to 5199, inclusive,
24of the Standard Industrial Classification (SIC) Manual published
25by the United States Office of Management and Budget, 1987
26edition.
27(B) In the case of any passthrough entity, the determination of
28whether a taxpayer is a qualified taxpayer under this section shall
29be made at the entity level and any credit under this section or
30Section 23634 shall be allowed to the passthrough entity and passed
31through to the partners or shareholders in accordance with
32applicable provisions of this part or Part 11 (commencing with
33Section 23001). For purposes of this subdivision, the term
34“passthrough entity” means any partnership or S corporation.
35(6) “Seasonal employment” means employment by a qualified
36taxpayer that has regular and predictable substantial reductions in
37trade or business operations.
38(c) If the
qualified taxpayer is allowed a credit for qualified
39wages pursuant to this section, only one credit shall be allowed to
40the taxpayer under this part with respect to those qualified wages.
P653 1(d) The qualified taxpayer shall do both of the following:
2(1) Obtain from the Employment Development Department, as
3permitted by federal law, the local county or city Job Training
4Partnership Act administrative entity, the local county GAIN office
5or social services agency, or the local government administering
6the targeted tax area, a certification that provides that a qualified
7employee meets the eligibility requirements specified in clause
8(iv) of subparagraph (A) of paragraph (4) of subdivision (b). The
9Employment Development Department may provide preliminary
10screening and referral to a certifying agency. The Department of
11Housing and Community Development shall develop regulations
12
governing the issuance of certificates pursuant to subdivision (g)
13of Section 7097 of the Government Code, and shall develop forms
14for this purpose.
15(2) Retain a copy of the certification and provide it upon request
16to the Franchise Tax Board.
17(e) (1) For purposes of this section:
18(A) All employees of trades or businesses, which are not
19incorporated, that are under common control shall be treated as
20employed by a single taxpayer.
21(B) The credit, if any, allowable by this section with respect to
22each trade or business shall be determined by reference to its
23proportionate share of the expense of the qualified wages giving
24rise to the credit, and shall be allocated in that manner.
25(C) Principles that apply in the case of controlled groups of
26corporations, as specified in subdivisionbegin delete (d)end deletebegin insert (e)end insert of Section 23634,
27begin delete shallend delete apply with respect to determining employment.
28(2) If an employer acquires the major portion of a trade or
29business of another employer (hereinafter in this paragraph referred
30to as the “predecessor”) or the major portion of a separate unit of
31a trade or business of a predecessor, then, for purposes of applying
32this section (other than subdivision (f)) for any calendar year ending
33after that acquisition, the employment relationship between a
34qualified employee and an employer shall not be treated as
35terminated if the employee
continues to be employed in that trade
36or business.
37(f) (1) (A) If the employment, other than seasonal employment,
38of any qualified employee, with respect to whom qualified wages
39are taken into account under subdivision (a) is terminated by the
40qualified taxpayer at any time during the first 270 days of that
P654 1employment (whether or not consecutive) or before the close of
2the 270th calendar day after the day in which that employee
3completes 90 days of employment with the qualified taxpayer, the
4tax imposed by this part for the taxable year in which that
5employment is terminated shall be increased by an amount equal
6to the credit allowed under subdivision (a) for that taxable year
7and all prior taxable years attributable to qualified wages paid or
8incurred with respect to that employee.
9(B) If the seasonal employment of any qualified
employee, with
10respect to whom qualified wages are taken into account under
11subdivision (a) is not continued by the qualified taxpayer for a
12period of 270 days of employment during the 60-month period
13beginning with the day the qualified employee commences seasonal
14employment with the qualified taxpayer, the tax imposed by this
15part, for the taxable year that includes the 60th month following
16the month in which the qualified employee commences seasonal
17employment with the qualified taxpayer, shall be increased by an
18amount equal to the credit allowed under subdivision (a) for that
19taxable year and all prior taxable years attributable to qualified
20wages paid or incurred with respect to that qualified employee.
21(2) (A) Subparagraph (A) of paragraph (1)begin delete shallend deletebegin insert
doesend insert not apply
22to any of the following:
23(i) A termination of employment of a qualified employee who
24voluntarily leaves the employment of the qualified taxpayer.
25(ii) A termination of employment of a qualified employee who,
26before the close of the period referred to in subparagraph (A) of
27paragraph (1), becomes disabled and unable to perform the services
28of that employment, unless that disability is removed before the
29close of that period and the qualified taxpayer fails to offer
30reemployment to that employee.
31(iii) A termination of employment of a qualified employee, if
32it is determined that the termination was due to the misconduct (as
33defined in Sections 1256-30 to 1256-43, inclusive, of Title 22 of
34the California Code of Regulations) of that employee.
35(iv) A termination of employment of a qualified employee due
36to a substantial reduction in the trade or business operations of the
37qualified taxpayer.
38(v) A termination of employment of a qualified employee, if
39that employee is replaced by other qualified employees so as to
P655 1create a net increase in both the number of employees and the
2hours of employment.
3(B) Subparagraph (B) of paragraph (1) shall not apply to any
4of the following:
5(i) A failure to continue the seasonal employment of a qualified
6employee who voluntarily fails to return to the seasonal
7employment of the qualified taxpayer.
8(ii) A failure to continue the seasonal employment of a qualified
9employee who, before the close of the
period referred to in
10subparagraph (B) of paragraph (1), becomes disabled and unable
11to perform the services of that seasonal employment, unless that
12disability is removed before the close of that period and the
13qualified taxpayer fails to offer seasonal employment to that
14qualified employee.
15(iii) A failure to continue the seasonal employment of a qualified
16employee, if it is determined that the failure to continue the
17seasonal employment was due to the misconduct (as defined in
18Sections 1256-30 to 1256-43, inclusive, of Title 22 of the California
19Code of Regulations) of that qualified employee.
20(iv) A failure to continue seasonal employment of a qualified
21employee due to a substantial reduction in the regular seasonal
22trade or business operations of the qualified taxpayer.
23(v) A failure to continue the seasonal
employment of a qualified
24employee, if that qualified employee is replaced by other qualified
25employees so as to create a net increase in both the number of
26seasonal employees and the hours of seasonal employment.
27(C) For purposes of paragraph (1), the employment relationship
28between the qualified taxpayer and a qualified employee shall not
29be treated as terminated by reason of a mere change in the form
30of conducting the trade or business of the qualified taxpayer, if the
31qualified employee continues to be employed in that trade or
32business and the qualified taxpayer retains a substantial interest
33in that trade or business.
34(3) begin deleteAny end deletebegin insertAn end insertincrease in tax under paragraph (1) shall not be
35treated
as tax imposed by this part for purposes of determining the
36amount of any credit allowable under this part.
37(g) In the case of an estate or trust, both of the following apply:
38(1) The qualified wages for any taxable year shall be apportioned
39between the estate or trust and the beneficiaries on the basis of the
40income of the estate or trust allocable to each.
P656 1(2) begin deleteAny end deletebegin insertA end insertbeneficiary to whom any qualified wages have been
2apportioned under paragraph (1) shall be treated, for purposes of
3this part, as the employer with respect to those wages.
4(h) For purposes of this
section, “targeted tax area” means an
5area designated pursuant to Chapter 12.93 (commencing with
6Section 7097) of Division 7 of Title 1 of the Government Code.
7(i) In the casebegin delete whereend deletebegin insert in whichend insert the credit otherwise allowed under
8this section exceeds the “net tax” for the taxable year, that portion
9of the credit that exceeds the “net tax” may be carried over and
10added to the credit, if any, in the succeeding 10 taxable years, if
11necessary, until the credit is exhausted. The credit shall be applied
12first to the earliest taxable years possible.
13(j) (1) The amount of the credit otherwise allowed under this
14section and Section 17053.33, including any credit carryover from
15prior
years, that may reduce the “net tax” for the taxable year shall
16not exceed the amount of tax that would be imposed on the
17qualified taxpayer’s business income attributable to the targeted
18tax area determined as if that attributable income represented all
19of the income of the qualified taxpayer subject to tax under this
20part.
21(2) Attributable income shall be that portion of the taxpayer’s
22California source business income that is apportioned to the
23targeted tax area. For that purpose, the taxpayer’s business income
24attributable to sources in this state first shall be determined in
25accordance with Chapter 17 (commencing with Section 25101) of
26Part 11. That business income shall be further apportioned to the
27targeted tax area in accordance with Article 2 (commencing with
28Section 25120) of Chapter 17 of Part 11, modified for purposes
29of this section in accordance with paragraph (3).
30(3) Business income shall be apportioned to the targeted tax
31area by multiplying the total California business income of the
32taxpayer by a fraction, the numerator of which is the property
33factor plus the payroll factor, and the denominator of which is two.
34For purposes of this paragraph:
35(A) The property factor is a fraction, the numerator of which is
36the average value of the taxpayer’s real and tangible personal
37property owned or rented and used in the targeted tax area during
38the taxable year, and the denominator of which is the average value
39of all the taxpayer’s real and tangible personal property owned or
40rented and used in this state during the taxable year.
P657 1(B) The payroll factor is a fraction, the numerator of which is
2the total amount paid by the taxpayer in the targeted tax area during
3the taxable year for compensation, and the denominator of which
4is the
total compensation paid by the taxpayer in this state during
5the taxable year.
6(4) The portion of any credit remaining, if any, after application
7of this subdivision, shall be carried over to succeeding taxable
8years, if necessary, until the credit is exhausted, as if it were an
9amount exceeding the “net tax” for the taxable year, as provided
10in subdivision (i). However, the portion of any credit remaining
11for carryover to taxable years beginning on or after January 1,
122014, if any, after application of this subdivision, shall be carried
13over only to the succeeding 10 taxable years, if necessary, until
14the credit is exhausted, as if it were an amount exceeding the “net
15tax” for the taxable year, as provided in subdivision (i).
16(5) In the event that a credit carryover is allowable under
17subdivision (i) for any taxable year after the targeted tax area
18expiration date, the targeted
tax area shall be deemed to remain in
19existence for purposes of computing the limitation specified in
20this subdivision.
21(k) (1) Except as provided in paragraph (2), this section shall
22cease to be operative for taxable years beginning on or after January
231, 2014, and shall be repealed on December 1, 2019.
24(2) The section shall continue to apply with respect to qualified
25employees who are employed by the qualified taxpayer within the
26targeted tax area within the 60-month period immediately preceding
27January 1, 2014, and qualified wages paid or incurred with respect
28to those qualified employees shall continue to qualify for the credit
29under this section for taxable years beginning on or after January
301, 2014, in accordance with this section, as amended by the act
31adding this subdivision.
Section 17053.46 of the Revenue and Taxation Code
33 is amended to read:
(a) For each taxable year beginning on or after
35January 1, 1995, there shall be allowed as a credit against the “net
36tax” (as defined in Section 17039) to a qualified taxpayer for hiring
37a qualified disadvantaged individual or a qualified displaced
38employee during the taxable year for employment in the LAMBRA.
39The credit shall be equal to the sum of each of the following:
P658 1(1) Fifty percent of the qualified wages in the first year of
2employment.
3(2) Forty percent of the qualified wages in the second year of
4employment.
5(3) Thirty percent of the qualified wages in the third year of
6employment.
7(4) Twenty percent of the qualified wages in the fourth year of
8employment.
9(5) Ten percent of the qualified wages in the fifth year of
10employment.
11(b) For purposes of this section:
12(1) “Qualified wages” means:
13(A) That portion of wages paid or incurred by the employer
14during the taxable year to qualified disadvantaged individuals or
15qualified displaced employees that does not exceed 150 percent
16of the minimum wage.
17(B) The total amount of qualified wages which may be taken
18into account for purposes of claiming the credit allowed under this
19section shall not exceed two million dollars ($2,000,000) per
20taxable year.
21(C) Wages received during the 60-month period beginning with
22the first day the individual commences employment with the
23taxpayer. Reemployment in connection with any increase, including
24a regularly occurring seasonal increase, in the trade or business
25operations of the qualified taxpayer does not constitute
26commencement of employment for purposes of this section.
27(D) Qualified wages do not include any wages paid or incurred
28by the qualified taxpayer on or after the LAMBRA expiration date.
29However, wages paid or incurred with respect to qualified
30disadvantaged individuals or qualified displaced employees who
31are employed by the qualified taxpayer within the LAMBRA within
32the 60-month period prior to the LAMBRA expiration date shall
33continue to qualify for the credit under this section after the
34LAMBRA expiration date, in accordance with all provisions of
35this section applied as if the
LAMBRA designation were still in
36existence and binding.
37(2) “Minimum wage” means the wage established by the
38Industrial Welfare Commission as provided for in Chapter 1
39(commencing with Section 1171) of Part 4 of Division 2 of the
40Labor Code.
P659 1(3) “LAMBRA” means a local agency military base recovery
2area designated in accordance with Section 7114 of the Government
3Code.
4(4) “Qualified disadvantaged individual” means an individual
5who satisfies all of the following requirements:
6(A) (i) At least 90 percent of whose services for the taxpayer
7during the taxable year are directly related to the conduct of the
8taxpayer’s trade or business located in a LAMBRA.
9(ii) Who
performs at least 50 percent of his or her services for
10the taxpayer during the taxable year in the LAMBRA.
11(B) Who is hired by the employer after the designation of the
12area as a LAMBRA in which the individual’s services were
13primarily performed.
14(C) Who is any of the following immediately preceding the
15individual’s commencement of employment with the taxpayer:
16(i) An individual who has been determined eligible for services
17under the federal Job Training Partnership Act (29 U.S.C. Sec.
181501 et seq.).
19(ii) Any voluntary or mandatory registrant under the Greater
20Avenues for Independence Act of 1985 as provided pursuant to
21Article 3.2 (commencing with Section 11320) of Chapter 2 of Part
223 of Division 9 of the Welfare and Institutions Code.
23(iii) An economically disadvantaged individual age 16 years or
24older.
25(iv) A dislocated worker who meets any of the following
26conditions:
27(I) Has been terminated or laid off or who has received a notice
28of termination or layoff from employment, is eligible for or has
29exhausted entitlement to unemployment insurance benefits, and
30is unlikely to return to his or her previous industry or occupation.
31(II) Has been terminated or has received a notice of termination
32of employment as a result of any permanent closure or any
33substantial layoff at a plant, facility, or enterprise, including an
34individual who has not received written notification but whose
35employer has made a public announcement of the closure or layoff.
36(III) Is long-term unemployed and has limited opportunities for
37employment or reemployment in the same or a similar occupation
38in the area in which the individual resides, including an individual
3955 years of age or older who may have substantial barriers to
40employment by reason of age.
P660 1(IV) Was self-employed (including farmers and ranchers) and
2is unemployed as a result of general economic conditions in the
3community in which he or she resides or because of natural
4disasters.
5(V) Was a civilian employee of the Department of Defense
6employed at a military installation being closed or realigned under
7the Defense Base Closure and Realignment Act of 1990.
8(VI) Was an active member of the Armed Forces or National
9Guard as of September 30, 1990, and was either
involuntarily
10separated or separated pursuant to a special benefits program.
11(VII) Experiences chronic seasonal unemployment and
12underemployment in the agriculture industry, aggravated by
13continual advancements in technology and mechanization.
14(VIII) Has been terminated or laid off or has received a notice
15of termination or layoff as a consequence of compliance with the
16Clean Air Act.
17(v) An individual who is enrolled in or has completed a state
18rehabilitation plan or is a service-connected disabled veteran,
19veteran of the Vietnam era, or veteran who is recently separated
20from military service.
21(vi) An ex-offender. An individual shall be treated as convicted
22if he or she was placed on probation by a state court without a
23finding of guilty.
24(vii) A recipient of:
25(I) Federal Supplemental Security Income benefits.
26(II) Aid to Families with Dependent Children.
27(III) CalFresh benefits.
28(IV) State and local general assistance.
29(viii) Is a member of a federally recognized Indian tribe, band,
30or other group of Native American descent.
31(5) “Qualified taxpayer” means a taxpayer or partnership that
32conducts a trade or business within a LAMBRA and, for the first
33two taxable years, has a net increase in jobs (defined as 2,000 paid
34hours per employee per year) of one or more employees in the
35LAMBRA.
36(A) The net increase in the number of jobs shall be determined
37by subtracting the total number of full-time employees (defined
38as 2,000 paid hours per employee per year) the taxpayer employed
39in this state in the taxable year prior to commencing business
40operations in the LAMBRA from the total number of full-time
P661 1employees the taxpayer employed in this state during the second
2taxable year after commencing business operations in the
3LAMBRA. For taxpayers who commence doing business in this
4state with their LAMBRA business operation, the number of
5employees for the taxable year prior to commencing business
6operations in the LAMBRA shall be zero. If the taxpayer has a net
7increase in jobs in the state, the credit shall be allowed only if one
8or more full-time employees is employed within the LAMBRA.
9(B) The total number of employees employed in the LAMBRA
10shall equal the sum of both of
the following:
11(i) The total number of hours worked in the LAMBRA for the
12taxpayer by employees (not to exceed 2,000 hours per employee)
13who are paid an hourly wage divided by 2,000.
14(ii) The total number of months worked in the LAMBRA for
15the taxpayer by employees who are salaried employees divided
16by 12.
17(C) In the case of a taxpayer who first commences doing
18business in the LAMBRA during the taxable year, for purposes of
19clauses (i) and (ii), respectively, of subparagraph (B), the divisors
20“2,000” and “12” shall be multiplied by a fraction, the numerator
21of which is the number of months of the taxable year that the
22taxpayer was doing business in the LAMBRA and the denominator
23of which is 12.
24(6) “Qualified displaced employee” means an individual who
25
satisfies all of the following requirements:
26(A) Any civilian or military employee of a base or former base
27who has been displaced as a result of a federal base closure act.
28(B) (i) At least 90 percent of whose services for the taxpayer
29during the taxable year are directly related to the conduct of the
30taxpayer’s trade or business located in a LAMBRA.
31(ii) Who performs at least 50 percent of his or her services for
32the taxpayer during the taxable year in a LAMBRA.
33(C) Who is hired by the employer after the designation of the
34area in which services were performed as a LAMBRA.
35(7) “Seasonal employment” means employment by a qualified
36taxpayer that has regular and
predictable substantial reductions in
37trade or business operations.
38(8) “LAMBRA expiration date” means the date the LAMBRA
39designation expires, is no longer binding, becomes inoperative, or
40is repealed.
P662 1(c) For qualified disadvantaged individuals or qualified displaced
2employees hired on or after January 1, 2001, the taxpayer shall do
3both of the following:
4(1) Obtain from the Employment Development Department, as
5permitted by federal law, the local county or city Job Training
6Partnership Act administrative entity, the local county GAIN office
7or social services agency, or the local government administering
8the LAMBRA, a certification that provides that a qualified
9disadvantaged individual or qualified displaced employee meets
10the eligibility requirements specified in subparagraph (C) of
11paragraph (4) of subdivision
(b) or subparagraph (A) of paragraph
12(6) of subdivision (b). The Employment Development Department
13may provide preliminary screening and referral to a certifying
14agency. The Department of Housing and Community Development
15shall develop regulations governing the issuance of certificates
16pursuant to Section 7114.2 of the Government Code and shall
17develop forms for this purpose.
18(2) Retain a copy of the certification and provide it upon request
19to the Franchise Tax Board.
20(d) (1) For purposes of this section, both of the following apply:
21(A) All employees of trades or businesses that are under
22common control shall be treated as employed by a single employer.
23(B) The credit (if any) allowable by this section with respect to
24each trade
or business shall be determined by reference to its
25proportionate share of the qualified wages giving rise to the credit.
26The regulations prescribed under this paragraph shall be based
27on principles similar to the principles that apply in the case of
28controlled groups of corporations as specified inbegin insert paragraph (1) ofend insert
29 subdivisionbegin delete (e)end deletebegin insert (d)end insert of Sectionbegin delete 23622.end deletebegin insert 23622.7.end insert
30(2) If an employer acquires the major portion of a trade
or
31business of another employer (hereinafter in this paragraph referred
32to as the “predecessor”) or the major portion of a separate unit of
33a trade or business of a predecessor, then, for purposes of applying
34this section (other than subdivision (d)) for any calendar year
35ending after that acquisition, the employment relationship between
36an employee and an employer shall not be treated as terminated if
37the employee continues to be employed in that trade or business.
38(e) (1) (A) If the employment, other than seasonal employment,
39of any employee, with respect to whom qualified wages are taken
40into account under subdivision (a), is terminated by the taxpayer
P663 1at any time during the first 270 days of that employment (whether
2or not consecutive) or before the close of the 270th calendar day
3after the day in which that employee completes 90 days of
4employment with the taxpayer, the tax imposed by this part
for
5the taxable year in which that employment is terminated shall be
6increased by an amount (determined under those regulations) equal
7to the credit allowed under subdivision (a) for that taxable year
8and all prior taxable years attributable to qualified wages paid or
9incurred with respect to that employee.
10(B) If the seasonal employment ofbegin delete anyend deletebegin insert aend insert qualified disadvantaged
11individual, with respect to whom qualified wages are taken into
12account under subdivision (a), is not continued by the qualified
13taxpayer for a period of 270 days of employment during the
1460-month period beginning with the day the qualified
15disadvantaged individual commences seasonal employment with
16the qualified taxpayer, the tax imposed by this part, for the taxable
17year that includes the
60th month following the month in which
18the qualified disadvantaged individual commences seasonal
19employment with the qualified taxpayer, shall be increased by an
20amount equal to the credit allowed under subdivision (a) for that
21taxable year and all prior taxable years attributable to qualified
22wages paid or incurred with respect to that qualified disadvantaged
23individual.
24(2) (A) Subparagraph (A) of paragraph (1)begin delete shallend deletebegin insert doesend insert not apply
25to any of the following:
26(i) A termination of employment of an employee who voluntarily
27leaves the employment of the taxpayer.
28(ii) A termination of employment of an
individual who, before
29the close of the period referred to in subparagraph (A) of paragraph
30(1), becomes disabled to perform the services of that employment,
31unless that disability is removed before the close of that period
32and the taxpayer fails to offer reemployment to that individual.
33(iii) A termination of employment of an individual, if it is
34determined that the termination was due to the misconduct (as
35defined in Sections 1256-30 to 1256-43, inclusive, of Title 22 of
36the California Code of Regulations) of that individual.
37(iv) A termination of employment of an individual due to a
38substantial reduction in the trade or business operations of the
39taxpayer.
P664 1(v) A termination of employment of an individual, if that
2individual is replaced by other qualified employees so as to create
3a net increase in both the number
of employees and the hours of
4employment.
5(B) Subparagraph (B) of paragraph (1)begin delete shallend deletebegin insert doesend insert not apply to
6any of the following:
7(i) A failure to continue the seasonal employment of a qualified
8disadvantaged individual who voluntarily fails to return to the
9seasonal employment of the qualified taxpayer.
10(ii) A failure to continue the seasonal employment of a qualified
11disadvantaged individual who, before the close of the period
12referred to in subparagraph (B) of paragraph (1), becomes disabled
13and unable to perform the services of that seasonal employment,
14unless that disability is removed before the close of that period
15and the
qualified taxpayer fails to offer seasonal employment to
16that individual.
17(iii) A failure to continue the seasonal employment of a qualified
18disadvantaged individual, if it is determined that the failure to
19continue the seasonal employment was due to the misconduct (as
20defined in Sections 1256-30 to 1256-43, inclusive, of Title 22 of
21the California Code of Regulations) of that qualified disadvantaged
22individual.
23(iv) A failure to continue seasonal employment of a qualified
24disadvantaged individual due to a substantial reduction in the
25regular seasonal trade or business operations of the qualified
26taxpayer.
27(v) A failure to continue the seasonal employment of a qualified
28disadvantaged individual, if that individual is replaced by other
29qualified displaced employees so as to create a net increase in both
30the number of
seasonal employees and the hours of seasonal
31employment.
32(C) For purposes of paragraph (1), the employment relationship
33between the taxpayer and an employee shall not be treated as
34terminated by reason of a mere change in the form of conducting
35the trade or business of the taxpayer, if the employee continues to
36be employed in that trade or business and the taxpayer retains a
37substantial interest in that trade or business.
38(3) begin deleteAny end deletebegin insertAn end insertincrease in tax under paragraph (1) shall not be
39treated as tax imposed by this part for purposes of determining the
40amount of any credit allowable under this part.
P665 1(4) At the close of the second
taxable year, if the taxpayer has
2not increased the number of its employees as determined by
3paragraph (5) of subdivision (b), then the amount of the credit
4previously claimed shall be added to the taxpayer’s net tax for the
5taxpayer’s second taxable year.
6(f) In the case of an estate or trust, both of the following apply:
7(1) The qualified wages for any taxable year shall be apportioned
8between the estate or trust and the beneficiaries on the basis of the
9income of the estate or trust allocable to each.
10(2) begin deleteAny end deletebegin insertA end insertbeneficiary to whom any qualified wages have been
11apportioned under paragraph (1) shall be treated (for purposes of
12
this part) as the employer with respect to those wages.
13(g) The credit shall be reduced by the credit allowed under
14Section 17053.7. The credit shall also be reduced by the federal
15credit allowed under Section 51 of the Internal Revenue Code.
16In addition, any deduction otherwise allowed under this part for
17the wages or salaries paid or incurred by the taxpayer upon which
18the credit is based shall be reduced by the amount of the credit,
19prior to any reduction required by subdivision (h) or (i).
20(h) In the case where the credit otherwise allowed under this
21section exceeds the “net tax” for the taxable year, that portion of
22the credit that exceeds the “net tax” may be carried over and added
23to the credit, if any, in the succeeding 10 taxable years, if necessary,
24until the credit is exhausted. The credit shall be applied first to the
25earliest
taxable years possible.
26(i) (1) The amount of credit otherwise allowed under this section
27and Section 17053.45, including prior year credit carryovers, that
28may reduce the “net tax” for the taxable year shall not exceed the
29amount of tax that would be imposed on the taxpayer’s business
30income attributed to a LAMBRA determined as if that attributed
31income represented all of the net income of the taxpayer subject
32to tax under this part.
33(2) Attributable income shall be that portion of the taxpayer’s
34California source business income that is apportioned to the
35LAMBRA. For that purpose, the taxpayer’s business income that
36is attributable to sources in this state first shall be determined in
37accordance with Chapter 17 (commencing with Section 25101) of
38Part 11. That business income shall be further apportioned to the
39LAMBRA in accordance with Article 2 (commencing
with Section
P666 125120) of Chapter 17 of Part 11, modified for purposes of this
2section in accordance with paragraph (3).
3(3) Income shall be apportioned to a LAMBRA by multiplying
4the total California business income of the taxpayer by a fraction,
5the numerator of which is the property factor plus the payroll factor,
6and the denominator of which is two. For purposes of this
7paragraph:
8(A) The property factor is a fraction, the numerator of which is
9the average value of the taxpayer’s real and tangible personal
10property owned or rented and used in the LAMBRA during the
11taxable year, and the denominator of which is the average value
12of all the taxpayer’s real and tangible personal property owned or
13rented and used in this state during the taxable year.
14(B) The payroll factor is a fraction, the numerator of which is
15the
total amount paid by the taxpayer in the LAMBRA during the
16taxable year for compensation, and the denominator of which is
17the total compensation paid by the taxpayer in this state during the
18taxable year.
19(4) The portion of any credit remaining, if any, after application
20of this subdivision, shall be carried over to succeeding taxable
21years, if necessary, until the credit is exhausted, as if it were an
22amount exceeding the “net tax” for the taxable year, as provided
23in subdivision (h). However, the portion of any credit remaining
24for carryover to taxable years beginning on or after January 1,
252014, if any, after application of this subdivision, shall be carried
26over only to the succeeding 10 taxable years if necessary, until the
27credit is exhausted, as if it were an amount exceeding the “net tax”
28for the taxable year, as provided in subdivision (h).
29(j) If the taxpayer is allowed
a credit pursuant to this section for
30qualified wages paid or incurred, only one credit shall be allowed
31to the taxpayer under this part with respect to any wage consisting
32in whole or in part of those qualified wages.
33(k) (1) Except as provided in paragraph (2), this section shall
34cease to be operative on January 1, 2014, and shall be repealed on
35December 1, 2019. A credit shall not be allowed under this section
36with respect to an employee who first commences employment
37with a qualified taxpayer on or after January 1, 2014.
38(2) This section shall continue to apply with respect to qualified
39disadvantaged individuals or qualified displaced employees who
40are employed by the qualified taxpayer within the LAMBRA within
P667 1the 60-month period immediately preceding January 1, 2014, and
2qualified wages paid or incurred with respect to those qualified
3disadvantaged
individuals or qualified displaced employees shall
4continue to qualify for the credit under this section for taxable
5years beginning on or after January 1, 2014, in accordance with
6this section, as amended by the act adding this subdivision.
Section 17053.73 of the Revenue and Taxation Code
8 is amended to read:
(a) (1) For each taxable year beginning on or after
10January 1, 2014, and before January 1, 2021, there shall be allowed
11to a qualified taxpayer that hires a qualified full-time employee
12and pays or incurs qualified wages attributable to work performed
13by the qualified full-time employee in a designated census tract
14or economic development area, and that receives a tentative credit
15reservation for that qualified full-time employee, a credit against
16the “net tax,” as defined in Section 17039, in an amount calculated
17under this section.
18(2) The amount of the credit allowable under this section for a
19taxable year shall be equal to the product of the tentative credit
20amount for the taxable year and the applicable percentage for that
21taxable
year.
22(3) (A) If a qualified taxpayer relocates to a designated census
23tract or economic development area, the qualified taxpayer shall
24be allowed a credit with respect to qualified wages for each
25qualified full-time employee employed within the new location
26only if the qualified taxpayer provides each employee at the
27previous location or locations a written offer of employment at the
28new location in the designated census tract or economic
29development area with comparable compensation.
30(B) For purposes of this paragraph, “relocates to a designated
31census tract or economic development area” means an increase in
32the number of qualified full-time employees, employed by a
33qualified taxpayer, within a designated census tract or tracts or
34economic development areas within a 12-month period in which
35there is a decrease in the number of full-time employees, employed
36
by the qualified taxpayer in this state, but outside of designated
37census tracts or economic development areas.
38(C) This paragraphbegin delete shallend deletebegin insert doesend insert not apply to a small business.
39(4) The credit allowed by this section may be claimed only on
40a timely filed original return of the qualified taxpayer and only
P668 1with respect to a qualified full-time employee for whom the
2qualified taxpayer has received a tentative credit reservation.
3(b) For purposes of this section:
4(1) The “tentative credit amount” for a taxable year shall be
5equal to the product of the applicable credit
percentage for each
6qualified full-time employee and the qualified wages paid by the
7qualified taxpayer during the taxable year to that qualified full-time
8employee.
9(2) The “applicable percentage” for a taxable year shall be equal
10to a fraction, the numerator of which is the net increase in the total
11number of full-time employees employed in this state during the
12taxable year, determined on an annual full-time equivalent basis,
13as compared with the total number of full-time employees
14employed in this state during the base year, determined on the
15same basis, and the denominator of which shall be the total number
16of qualified full-time employees employed in this state during the
17taxable year. The applicable percentage shall not exceed 100
18percent.
19(3) The “applicable credit percentage” means the credit
20percentage for the calendar year during which a qualified full-time
21employee was
first employed by the qualified taxpayer. The
22applicable credit percentage for all calendar years shall be 35
23percent.
24(4) “Base year” means the 2013 taxable year, except in the case
25of a qualified taxpayer who first hires a qualified full-time
26employee in a taxable year beginning on or after January 1, 2015,
27the base year means the taxable year immediately preceding the
28taxable year in which a qualified full-time employee was first hired
29by the qualified taxpayer.
30(5) “Acquired” includes any gift, inheritance, transfer incident
31to divorce, or any other transfer, whether or not for consideration.
32(6) “Annual full-time equivalent” means either of the following:
33(A) In the case of a full-time employee paid hourly qualified
34wages, “annual full-time
equivalent” means the total number of
35hours worked for the qualified taxpayer by the employee, not to
36exceed 2,000 hours per employee, divided by 2,000.
37(B) In the case of a salaried full-time employee, “annual
38full-time equivalent” means the total number of weeks worked for
39the qualified taxpayer by the employee divided by 52.
P669 1(7) “Designated census tract” means a census tract within the
2state that is determined by the Department of Finance to have a
3civilian unemployment rate that is within the top 25 percent of all
4census tracts within the state and has a poverty rate within the top
525 percent of all census tracts within the state, as prescribed in
6Section 13073.5 of the Government Code.
7(8) “Economic development area” means either of the following:
8(A) A former enterprise zone. For purposes of this section,
9“former enterprise zone” means an enterprise zone designated and
10in effect as of December 31, 2011, any enterprise zone designated
11during 2012, and any revision of an enterprise zone prior to June
1230, 2013, under former Chapter 12.8 (commencing with Section
137070) of Division 7 of Title 1 of the Government Code, as in effect
14on December 31, 2012, excluding any census tract within an
15enterprise zone that is identified by the Department of Finance
16pursuant to Section 13073.5 of the Government Code as a census
17tract within the lowest quartile of census tracts with the lowest
18civilian unemployment and poverty.
19(B) A local agency military base recovery area designated as
20of the effective date of the act adding this subparagraph, in
21accordance with Section 7114 of the Government Code.
22(9) “Minimum wage” means the
wage established pursuant to
23Chapter 1 (commencing with Section 1171) of Part 4 of Division
242 of the Labor Code.
25(10) (A) “Qualified full-time employee” means an individual
26who meets all of the following requirements:
27(i) Performs at least 50 percent of his or her services for the
28qualified taxpayer during the taxable year in a designated census
29tract or economic development area.
30(ii) Receives starting wages that are at least 150 percent of the
31minimum wage.
32(iii) Is hired by the qualified taxpayer on or after January 1,
332014.
34(iv) Is hired by the qualified taxpayer after the date the
35Department of Finance determines that the census tract referred
36to in clause (i) is
a designated census tract or that the census tracts
37within a former enterprise zone are not census tracts with the lowest
38civilian unemployment and poverty.
39(v) Satisfies either of the following conditions:
P670 1(I) Is paid qualified wages by the qualified taxpayer for services
2not less than an average of 35 hours per week.
3(II) Is a salaried employee and was paid compensation during
4the taxable year for full-time employment, within the meaning of
5Section 515 of the Labor Code, by the qualified taxpayer.
6(vi) Upon commencement of employment with the qualified
7taxpayer, satisfies any of the following conditions:
8(I) Was unemployed for the six months immediately preceding
9employment with the
qualified taxpayer. In the case of an
10individual that completed a program of study at a college,
11university, or other postsecondary educational institution, received
12a baccalaureate, postgraduate, or professional degree, and was
13unemployed for the six months immediately preceding employment
14with the qualified taxpayer, that individual must have completed
15that program of study at least 12 months prior to the individual’s
16commencement of employment with the qualified taxpayer.
17(II) Is a veteran who separated from service in the Armed Forces
18of the United States within the 12 months preceding
19commencement of employment with the qualified taxpayer.
20(III) Was a recipient of the credit allowed under Section 32 of
21the Internal Revenue Code, relating to earned income, as applicable
22for federal purposes, for the previous taxable year.
23(IV) Is an ex-offender previously convicted of a felony.
24(V) Is a recipient of either CalWORKs, in accordance with
25Article 2 (commencing with Section 11250) of Chapter 2 of Part
263 of Division 9 of the Welfare and Institutions Code, or general
27assistance, in accordance with Section 17000.5 of the Welfare and
28Institutions Code.
29(B) An individual may be considered a qualified full-time
30employee only for the period of time commencing with the date
31the individual is first employed by the qualified taxpayer and
32ending 60 months thereafter.
33(11) (A) “Qualified taxpayer” means a person or entity engaged
34in a trade or business within a designated census tract or economic
35development area that, during the taxable year, pays or incurs
36qualified wages.
37(B) In the case of any pass-thru entity, the determination of
38whether a taxpayer is a qualified taxpayer under this section shall
39be made at the entity level and any credit under this section or
40Section 23626 shall be allowed to the pass-thru entity and passed
P671 1through to the partners and shareholders in accordance with
2applicable provisions of this part or Part 11 (commencing with
3Section 23001). For purposes of this subdivision, the term
4“pass-thru entity” means any partnership or “S” corporation.
5(C) “Qualified taxpayers” shall not include any of the following:
6(i) Employers that provide temporary help services, as described
7in Code 561320 of the North American Industry Classification
8System (NAICS) published by the United States Office of
9Management and Budget, 2012 edition.
10(ii) Employers that provide retail trade services, as described
11in Sector 44-45 of the North American Industry Classification
12System (NAICS) published by the United States Office of
13Management and Budget, 2012 edition.
14(iii) Employers that are primarily engaged in providing food
15services, as described in Code 711110, 722511, 722513, 722514,
16or 722515 of the North American Industry Classification System
17(NAICS) published by the United States Office of Management
18and Budget, 2012 edition.
19(iv) Employers that are primarily engaged in services as
20described in Code 713210, 721120, or 722410 of the North
21American Industry Classification System (NAICS) published by
22the United States Office of Management and Budget, 2012 edition.
23(v) (I) An employer that is a sexually oriented business.
24(II) For purposes of this clause:
25(aa)
end delete
26begin insert(ia)end insert “Sexually oriented business” means a nightclub, bar,
27restaurant, or similar commercial enterprise that provides for an
28audience of two or more individuals live nude entertainment or
29live nude performances where the nudity is a function of everyday
30business operations and where nudity is a planned and intentional
31part of the entertainment or performance.
32(ab)
end delete
33begin insert(ib)end insert “Nude” means clothed in a manner that leaves uncovered
34or visible, through less than fully opaque clothing, any portion of
35the genitals or, in the case of a female, any portion of the breasts
36below the top of the areola of the breasts.
37(D) Subparagraph (C) shall not apply to a taxpayer that is a
38“small business.”
39(12) “Qualified wages” means those wages that meet all of the
40following requirements:
P672 1(A) (i) Except as provided in clause (ii), that portion of wages
2paid or incurred by the qualified taxpayer during the taxable year
3to each qualified full-time employee that exceeds 150 percent of
4minimum wage, but does not exceed
350 percent of minimum
5wage.
6(ii) (I) In the case of a qualified full-time employee employed
7in a designated pilot area, that portion of wages paid or incurred
8by the qualified taxpayer during the taxable year to each qualified
9full-time employee that exceeds ten dollars ($10) per hour or an
10equivalent amount for salaried employees, but does not exceed
11350 percent of minimum wage. For qualified full-time employees
12described in the preceding sentence, clause (ii) of subparagraph
13(A) of paragraph (10) is modified by substituting “ten dollars ($10)
14per hour or an equivalent amount for salaried employees” for “150
15percent of the minimum wage.”
16(II) For purposes of this clause:
17(aa)
end delete
18begin insert(ia)end insert “Designated pilot area” means an area designated as a
19designated pilot area by the Governor’s Office of Business and
20Economic Development.
21(ab)
end delete
22begin insert(ib)end insert Areas that may be designated as a designated pilot area are
23limited to areas within a designated census tract or an economic
24development area with average wages less than the statewide
25average wages, based on information from the Labor Market
26Division of the Employment Development Department, and areas
27within a designated census tract or an economic
development area
28based on high poverty or high unemployment.
29(ac)
end delete
30begin insert(ic)end insert The total number of designated pilot areas that may be
31designated is limited to five, one or more of which must be an area
32within five or fewer designated census tracts within a single county
33based on high poverty or high unemployment or an area within an
34economic development area based on high poverty or high
35unemployment.
36(ad)
end delete
37begin insert(id)end insert The designation of a designated pilot area shall be applicable
38for a period of four calendar years, commencing with the first
39calendar year for which the designation of a designated pilot area
40is effective. The applicable period of a designated pilot area may
P673 1be extended, in the sole discretion of the Governor’s Office of
2Business and Economic Development, for an additional period of
3up to three calendar years. The applicable period, and any extended
4period, shall not extend beyond December 31, 2020.
5(III) The designation of an area as a designated pilot area and
6the extension of the applicable period of a designated pilot area
7shall be at the sole discretion of the Governor’s Office of Business
8and Economic Development and shall not be subject to
9administrative appeal or judicial review.
10(B) Wages paid or incurred during the 60-month period
11beginning with the
first day the qualified full-time employee
12commences employment with the qualified taxpayer. In the case
13of any employee who is reemployed, including a regularly
14occurring seasonal increase, in the trade or business operations of
15the qualified taxpayer, this reemployment shall not be treated as
16constituting commencement of employment for purposes of this
17section.
18(C) Except as provided in paragraph (3) of subdivision (n),
19qualified wages shall not include any wages paid or incurred by
20the qualified taxpayer on or after the date that the Department of
21Finance’s redesignation of designated census tracts is effective,
22as provided in paragraph (2) of subdivision (g), so that a census
23tract is no longer a designated census tract.
24(13) “Seasonal employment” means employment by a qualified
25taxpayer that has regular and predictable substantial reductions in
26trade or business
operations.
27(14) (A) “Small business” means a trade or business that has
28aggregate gross receipts, less returns and allowances reportable to
29this state, of less than two million dollars ($2,000,000) during the
30previous taxable year.
31(B) (i) For purposes of this paragraph, “gross receipts, less
32returns and allowances reportable to this state,” means the sum of
33the gross receipts from the production of business income, as
34defined in subdivision (a) of Section 25120, and the gross receipts
35from the production of nonbusiness income, as defined in
36subdivision (d) of Section 25120.
37(ii) In the case of any trade or business activity conducted by a
38partnership or an “S” corporation, the limitations set forth in
39subparagraph (A) shall be applied to the partnership or “S”
40corporation
and to each partner or shareholder.
P674 1(C) (i) “Small business” shall not include a sexually oriented
2business.
3(ii) For purposes of this subparagraph:
4(I) “Sexually oriented business” means a nightclub, bar,
5restaurant, or similar commercial enterprise that provides for an
6audience of two or more individuals live nude entertainment or
7live nude performances where the nudity is a function of everyday
8business operations and where nudity is a planned and intentional
9part of the entertainment or performance.
10(II) “Nude” means clothed in a manner that leaves uncovered
11or visible, through less than fully opaque clothing, any portion of
12the genitals or, in the case of a female, any portion of the breasts
13below the top of the areola of the
breasts.
14(15) An individual is “unemployed” for any period for which
15the individual is all of the following:
16(A) Not in receipt of wages subject to withholding under Section
1713020 of the Unemployment Insurance Code for that period.
18(B) Not a self-employed individual (within the meaning of
19Section 401(c)(1)(B) of the Internal Revenue Code, relating to
20self-employed individual) for that period.
21(C) Not a registered full-time student at a high school, college,
22university, or other postsecondary educational institution for that
23period.
24(c) The net increase in full-time employees of a qualified
25taxpayer shall be determined as provided by this subdivision:
26(1) (A) The net increase in full-time employees shall be
27determined on an annual full-time equivalent basis by subtracting
28from the amount determined in subparagraph (C) the amount
29determined in subparagraph (B).
30(B) The total number of full-time employees employed in the
31base year by the taxpayer and by any trade or business acquired
32by the taxpayer during the current taxable year.
33(C) The total number of full-time employees employed in the
34current taxable year by the taxpayer and by any trade or business
35acquired during the current taxable year.
36(2) For taxpayers who first commence doing business in this
37state during the taxable year, the number of full-time employees
38for the base year shall be zero.
39(d) For purposes of this section:
P675 1(1) All employees of the trades or businesses that are treated as
2related under Section 267, 318, or 707 of the Internal Revenue
3Code shall be treated as employed by a single taxpayer.
4(2) In determining whether the taxpayer has first commenced
5doing business in this state during the taxable year, the provisions
6of subdivision (f) of Sectionbegin delete 17276.20,end deletebegin insert 17276,end insert without application
7of paragraph (7) of that subdivision, shall apply.
8(e) (1) To be eligible for the credit allowed by this section, a
9qualified taxpayer
shall, upon hiring a qualified full-time employee,
10request a tentative credit reservation from the Franchise Tax Board
11within 30 days of complying with the Employment Development
12Department’s new hire reporting requirements as provided in
13Section 1088.5 of the Unemployment Insurance Code, in the form
14and manner prescribed by the Franchise Tax Board.
15(2) To obtain a tentative credit reservation with respect to a
16qualified full-time employee, the qualified taxpayer shall provide
17necessary information, as determined by the Franchise Tax Board,
18including the name, social security number, the start date of
19employment, the rate of pay of the qualified full-time employee,
20the qualified taxpayer’s gross receipts, less returns and allowances,
21for the previous taxable year, and whether the qualified full-time
22employee is a resident of a targeted employment area, as defined
23in former Section 7072 of the Government Code, as in effect on
24December 31,
2013.
25(3) The qualified taxpayer shall provide the Franchise Tax Board
26an annual certification of employment with respect to each
27qualified full-time employee hired in a previous taxable year, on
28or before, the 15th day of the third month of the taxable year. The
29certification shall include necessary information, as determined
30by the Franchise Tax Board, including the name, social security
31number, start date of employment, and rate of pay for each qualified
32full-time employee employed by the qualified taxpayer.
33(4) A tentative credit reservation provided to a taxpayer with
34respect to an employee of that taxpayer shall not constitute a
35determination by the Franchise Tax Board with respect to any of
36the requirements of this section regarding a taxpayer’s eligibility
37for the credit authorized by this section.
38(f) The Franchise Tax Board shall do all of the following:
39(1) Approve a tentative credit reservation with respect to a
40qualified full-time employee hired during a calendar year.
P676 1(2) Determine the aggregate tentative reservation amount and
2the aggregate small business tentative reservation amount for a
3calendar year.
4(3) A tentative credit reservation request from a qualified
5taxpayer with respect to a qualified full-time employee who is a
6resident of a targeted employment area, as defined in former
7Section 7072 of the Government Code, as in effect on December
831, 2013, shall be expeditiously processed by the Franchise Tax
9Board. The residence of a qualified full-time employee in a targeted
10employment area shall have no other effect on the eligibility of an
11individual as a qualified full-time employee or the eligibility of a
12
qualified taxpayer for the credit authorized by this section.
13(4) Notwithstanding Section 19542, provide as a searchable
14database on its Internet Web site, for each taxable year beginning
15on or after January 1, 2014, and before January 1, 2021, the
16employer names, amounts of tax credit claimed, and number of
17new jobs created for each taxable year pursuant to this section and
18Section 23626.
19(g) (1) The Department of Finance shall, by January 1, 2014,
20and by January 1 of every fifth year thereafter, provide the
21Franchise Tax Board with a list of the designated census tracts and
22a list of census tracts with the lowest civilian unemployment rate.
23(2) The redesignation of designated census tracts and lowest
24civilian unemployment census tracts by the Department of Finance
25as provided in Section
13073.5 of the Government Code shall be
26effective, for purposes of this credit, one year after the date the
27Department of Finance redesignates the designated census tracts.
28(h) For purposes of this section:
29(1) All employees of the trades or businesses that are treated as
30related under Section 267, 318, or 707 of the Internal Revenue
31Code shall be treated as employed by a single taxpayer.
32(2) All employees of trades or businesses that are not
33incorporated, and that are under common control, shall be treated
34as employed by a single taxpayer.
35(3) The credit, if any, allowable by this section with respect to
36each trade or business shall be determined by reference to its
37proportionate share of the expense of the qualified wages giving
38rise to the credit,
and shall be allocated to that trade or business in
39that manner.
P677 1(4) Principles that apply in the case of controlled groups of
2corporations, as specified in subdivision (h) of Section 23626,
3shall apply with respect to determining employment.
4(5) If an employer acquires the major portion of a trade or
5business of another employer, hereinafter in this paragraph referred
6to as the predecessor, or the major portion of a separate unit of a
7trade or business of a predecessor, then, for purposes of applying
8this section, other than subdivision (i), for any taxable year ending
9after that acquisition, the employment relationship between a
10qualified full-time employee and an employer shall not be treated
11as terminated if the employee continues to be employed in that
12trade or business.
13(i) (1) If the
employment of any qualified full-time employee,
14with respect to whom qualified wages are taken into account under
15subdivision (a), is terminated by the qualified taxpayer at any time
16during the first 36 months after commencing employment with
17the qualified taxpayer, whether or not consecutive, the tax imposed
18by this part for the taxable year in which that employment is
19terminated shall be increased by an amount equal to the credit
20allowed under subdivision (a) for that taxable year and all prior
21taxable years attributable to qualified wages paid or incurred with
22respect to that employee.
23(2) Paragraph (1)begin delete shallend deletebegin insert doesend insert not apply to any of the following:
24(A) A termination of employment of a
qualified full-time
25employee who voluntarily leaves the employment of the qualified
26taxpayer.
27(B) A termination of employment of a qualified full-time
28employee who, before the close of the period referred to in
29paragraph (1), becomes disabled and unable to perform the services
30of that employment, unless that disability is removed before the
31close of that period and the qualified taxpayer fails to offer
32reemployment to that employee.
33(C) A termination of employment of a qualified full-time
34employee, if it is determined that the termination was due to the
35misconduct, as defined in Sections 1256-30 to 1256-43, inclusive,
36of Title 22 of the California Code of Regulations, of that employee.
37(D) A termination of employment of a qualified full-time
38employee due to a substantial reduction in the trade or business
39operations
of the qualified taxpayer, including reductions due to
40seasonal employment.
P678 1(E) A termination of employment of a qualified full-time
2employee, if that employee is replaced by other qualified full-time
3employees so as to create a net increase in both the number of
4employees and the hours of employment.
5(F) A termination of employment of a qualified full-time
6employee, when that employment is considered seasonal
7employment and the qualified employee is rehired on a seasonal
8basis.
9(3) For purposes of paragraph (1), the employment relationship
10between the qualified taxpayer and a qualified full-time employee
11shall not be treated as terminated by reason of a mere change in
12the form of conducting the trade or business of the qualified
13taxpayer, if the qualified full-time employee continues to be
14employed in that trade or
business and the qualified taxpayer retains
15a substantial interest in that trade or business.
16(4) begin deleteAny end deletebegin insertAn end insertincrease in tax under paragraph (1) shall not be
17treated as tax imposed by this part for purposes of determining the
18amount of any credit allowable under this part.
19(j) In the case of an estate or trust, both of the following apply:
20(1) The qualified wages forbegin delete anyend deletebegin insert aend insert taxable year shall be
21apportioned between the estate or trust and the
beneficiaries on
22the basis of the income of the estate or trust allocable to each.
23(2) begin deleteAny end deletebegin insertA end insertbeneficiary to whom any qualified wages have been
24apportioned under paragraph (1) shall be treated, for purposes of
25this part, as the employer with respect to those wages.
26(k) In the casebegin delete whereend deletebegin insert in whichend insert the credit allowed by this section
27exceeds the “net tax,” the excess may be carried over to reduce
28the “net tax” in the following year, and the succeeding four years
29if necessary, until the credit is
exhausted.
30(l) The Franchise Tax Board may prescribe rules, guidelines,
31or procedures necessary or appropriate to carry out the purposes
32of this section, including any guidelines regarding the allocation
33of the credit allowed under this section. Chapter 3.5 (commencing
34with Section 11340) of Part 1 of Division 3 of Title 2 of the
35Government Code shall not apply to any rule, guideline, or
36procedure prescribed by the Franchise Tax Board pursuant to this
37section.
38(m) (1) Upon the effective date of this section, the Department
39of Finance shall estimate the total dollar amount of credits that
P679 1will be claimed under this section with respect to each fiscal year
2from the 2013-14 fiscal year to the 2020- 21 fiscal year, inclusive.
3(2) The Franchise Tax Board shall annually provide to the Joint
4
Legislative Budget Committee, by no later than March 1, a report
5of the total dollar amount of the credits claimed under this section
6with respect to the relevant fiscal year. The report shall compare
7the total dollar amount of credits claimed under this section with
8respect to that fiscal year with the department’s estimate with
9respect to that same fiscal year. If the total dollar amount of credits
10claimed for the fiscal year is less than the estimate for that fiscal
11year, the report shall identify options for increasing annual claims
12of the credit so as to meet estimated amounts.
13(n) (1) This section shall remain in effect only until December
141, 2024, and as of that date is repealed.
15(2) Notwithstanding paragraph (1) of subdivision (a), this section
16shall continue to be operative for taxable years beginning on or
17after January 1, 2021, but only with
respect to qualified full-time
18employees who commenced employment with a qualified taxpayer
19in a designated census tract or economic development area in a
20taxable year beginning before January 1, 2021.
21(3) This section shall remain operative for any qualified taxpayer
22with respect to any qualified full-time employee after the
23designated census tract is no longer designated or an economic
24development area ceases to be an economic development area, as
25defined in this section, for the remaining period, if any, of the
2660-month period after the original date of hiring of an otherwise
27qualified full-time employee and any wages paid or incurred with
28respect to those qualified full-time employees after the designated
29census tract is no longer designated or an economic development
30area ceases to be an economic development area, as defined in this
31section, shall be treated as qualified wages under this section,
32provided the employee satisfies any other
requirements of
33paragraphs (10) and (12) of subdivision (b), as if the designated
34census tract was still designated and binding or the economic
35development area was still in existence.
Section 17053.74 of the Revenue and Taxation Code
37 is amended to read:
(a) There shall be allowed a credit against the “net
39tax” (as defined in Section 17039) to a taxpayer who employs a
P680 1qualified employee in an enterprise zone during the taxable year.
2The credit shall be equal to the sum of each of the following:
3(1) Fifty percent of qualified wages in the first year of
4employment.
5(2) Forty percent of qualified wages in the second year of
6employment.
7(3) Thirty percent of qualified wages in the third year of
8employment.
9(4) Twenty percent of qualified wages in the fourth year of
10employment.
11(5) Ten percent of qualified wages in the fifth year of
12employment.
13(b) For purposes of this section:
14(1) “Qualified wages” means:
15(A) (i) Except as provided in clause (ii), that portion of wages
16paid or incurred by the taxpayer during the taxable year to qualified
17employees that does not exceed 150 percent of the minimum wage.
18(ii) For up to 1,350 qualified employees who are employed by
19the taxpayer in the Long Beach Enterprise Zone in aircraft
20manufacturing activities described in Codes 3721 to 3728,
21inclusive, and Code 3812 of the Standard Industrial Classification
22(SIC) Manual published by the United States Office of
23Management and Budget, 1987 edition, “qualified
wages” means
24that portion of hourly wages that does not exceed 202 percent of
25the minimum wage.
26(B) Wages received during the 60-month period beginning with
27the first day the employee commences employment with the
28taxpayer. Reemployment in connection with any increase, including
29a regularly occurring seasonal increase, in the trade or business
30operations of the taxpayer does not constitute commencement of
31employment for purposes of this section.
32(C) Qualified wages do not include any wages paid or incurred
33by the taxpayer on or after the zone expiration date. However,
34wages paid or incurred with respect to qualified employees who
35are employed by the taxpayer within the enterprise zone within
36the 60-month period prior to the zone expiration date shall continue
37to qualify for the credit under this section after the zone expiration
38date, in accordance with all provisions of this
section applied as
39if the enterprise zone designation were still in existence and
40binding.
P681 1(2) “Minimum wage” means the wage established by the
2Industrial Welfare Commission as provided for in Chapter 1
3(commencing with Section 1171) of Part 4 of Division 2 of the
4Labor Code.
5(3) “Zone expiration date” means the date the enterprise zone
6designation expires, is no longer binding, becomes inoperative, or
7is repealed.
8(4) (A) “Qualified employee” means an individual who meets
9all of the following requirements:
10(i) At least 90 percent of whose services for the taxpayer during
11the taxable year are directly related to the conduct of the taxpayer’s
12trade or business located in an enterprise zone.
13(ii) Performs at least 50 percent of his or her services for the
14taxpayer during the taxable year in an enterprise zone.
15(iii) Is hired by the taxpayer after the date of original designation
16of the area in which services were performed as an enterprise zone.
17(iv) Is any of the following:
18(I) Immediately preceding the qualified employee’s
19commencement of employment with the taxpayer, was a person
20eligible for services under the federal Job Training Partnership
21Act (29 U.S.C. Sec. 1501 et seq.), or its successor, who is receiving,
22or is eligible to receive, subsidized employment, training, or
23services funded by the federal Job Training Partnership Act, or its
24successor.
25(II) Immediately preceding
the qualified employee’s
26commencement of employment with the taxpayer, was a person
27eligible to be a voluntary or mandatory registrant under the Greater
28Avenues for Independence Act of 1985 (GAIN) provided for
29pursuant to Article 3.2 (commencing with Section 11320) of
30Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions
31Code, or its successor.
32(III) Immediately preceding the qualified employee’s
33commencement of employment with the taxpayer, was an
34economically disadvantaged individual 14 years of age or older.
35(IV) Immediately preceding the qualified employee’s
36commencement of employment with the taxpayer, was a dislocated
37worker who meets any of the following:
38(aa)
end delete
39begin insert(ia)end insert Has been terminated or laid off or who has received a notice
40of termination or layoff from employment, is eligible for or has
P682 1exhausted entitlement to unemployment insurance benefits, and
2is unlikely to return to his or her previous industry or occupation.
3(bb)
end delete
4begin insert(ib)end insert Has been terminated or has received a notice of termination
5of employment as a result of any permanent closure or any
6substantial layoff at a plant, facility, or enterprise, including an
7individual who has not received written notification but
whose
8employer has made a public announcement of the closure or layoff.
9(cc)
end delete
10begin insert(ic)end insert Is long-term unemployed and has limited opportunities for
11employment or reemployment in the same or a similar occupation
12in the area in which the individual resides, including an individual
1355 years of age or older who may have substantial barriers to
14employment by reason of age.
15(dd)
end delete
16begin insert(id)end insert Was self-employed (including farmers and ranchers) and
17is unemployed as a result of general economic conditions in the
18community in which he or she resides or because of natural
19disasters.
20(ee)
end delete
21begin insert(ie)end insert Was a civilian employee of the Department of Defense
22employed at a military installation being closed or realigned under
23the Defense Base Closure and Realignment Act of 1990.
24(ff)
end delete
25begin insert(if)end insert Was an active member of the armed forces or National Guard
26as of September 30, 1990, and was either involuntarily separated
27or separated pursuant to a special benefits program.
28(gg)
end delete
29begin insert(ig)end insert Is a seasonal or migrant worker who experiences chronic
30seasonal unemployment and underemployment in the agriculture
31industry, aggravated by continual advancements in technology and
32mechanization.
33(hh)
end delete
34begin insert(ih)end insert Has been terminated or laid off, or has received a notice of
35termination or layoff, as a consequence of compliance with the
36Clean Air Act.
37(V) Immediately preceding the qualified employee’s
38commencement of employment with the taxpayer, was a disabled
39individual who is eligible for or enrolled in, or has completed a
40state rehabilitation plan or is a service-connected disabled veteran,
P683 1veteran of the Vietnam era, or veteran who is recently separated
2from military service.
3(VI) Immediately preceding the qualified employee’s
4commencement of employment with the taxpayer, was an
5ex-offender. An individual shall be treated as convicted if he or
6she was placed on probation by a state court without a finding of
7guilt.
8(VII) Immediately preceding the qualified employee’s
9commencement of employment with the
taxpayer, was a person
10eligible for or a recipient of any of the following:
11(aa)
end delete12begin insert(ia)end insert Federal Supplemental Security Income benefits.
13(bb)
end delete14begin insert(ib)end insert Aid to Families with Dependent Children.
15(cc)
end delete16begin insert(ic)end insert CalFresh benefits.
17(dd)
end delete18begin insert(id)end insert State and local general assistance.
19(VIII) Immediately preceding the qualified employee’s
20commencement of employment with the taxpayer, was a member
21of a federally recognized Indian tribe, band, or other group of
22Native American descent.
23(IX) Immediately preceding the qualified employee’s
24commencement of employment with the taxpayer, was a
resident
25of a targeted employment area, as defined in Section 7072 of the
26Government Code.
27(X) An employee who qualified the taxpayer for the enterprise
28zone hiring credit under former Section 17053.8 or the program
29area hiring credit under former Section 17053.11.
30(XI) Immediately preceding the qualified employee’s
31commencement of employment with the taxpayer, was a member
32of a targeted group, as defined in Section 51(d) of the Internal
33Revenue Code, or its successor.
34(B) Priority for employment shall be provided to an individual
35who is enrolled in a qualified program under the federal Job
36Training Partnership Act or the Greater Avenues for Independence
37Act of 1985 or who is eligible as a member of a targeted group
38under the Work Opportunity Tax Credit (Section 51 of the Internal
39Revenue Code), or its successor.
P684 1(5) “Taxpayer” means a person or entity engaged in a trade or
2business within an enterprise zone designated pursuant to Chapter
312.8 (commencing with Section 7070) of the Government Code.
4(6) “Seasonal employment” means employment by a taxpayer
5 that has regular and predictable substantial reductions in trade or
6business operations.
7(c) The taxpayer shall do both of the following:
8(1) Obtain from the Employment Development Department, as
9permitted by federal law, the local county or city Job Training
10Partnership Act administrative entity, the local county GAIN office
11or social services agency, or the local government administering
12the enterprise zone, a certification which provides that a qualified
13employee meets the eligibility requirements specified in
clause
14(iv) of subparagraph (A) of paragraph (4) of subdivision (b). The
15Employment Development Department may provide preliminary
16screening and referral to a certifying agency. The Employment
17Development Department shall develop a form for this purpose.
18The Department of Housing and Community Development shall
19develop regulations governing the issuance of certificates by local
20governments pursuant to subdivision (a) of Section 7086 of the
21Government Code.
22(2) Retain a copy of the certification and provide it upon request
23to the Franchise Tax Board.
24(d) (1) For purposes of this section:
25(A) All employees of trades or businesses, which are not
26incorporated, that are under common control shall be treated as
27employed by a single taxpayer.
28(B) The credit, if any, allowable by this section with respect to
29each trade or business shall be determined by reference to its
30proportionate share of the expense of the qualified wages giving
31rise to the credit, and shall be allocated in that manner.
32(C) Principles that apply in the case of controlled groups of
33corporations, as specified inbegin insert paragraph (1) ofend insert subdivision (d) of
34Section 23622.7,begin delete shallend delete apply with respect to determining
35employment.
36(2) If an employer acquires the major portion of a trade or
37business of another employer (hereinafter in this paragraph referred
38to as the “predecessor”) or the major portion of a separate unit of
39a trade or business of a predecessor,
then, for purposes of applying
40this section (other than subdivision (e)) for any calendar year
P685 1ending after that acquisition, the employment relationship between
2a qualified employee and an employer shall not be treated as
3terminated if the employee continues to be employed in that trade
4or business.
5(e) (1) (A) If the employment, other than seasonal employment,
6of any qualified employee, with respect to whom qualified wages
7are taken into account under subdivision (a), is terminated by the
8taxpayer at any time during the first 270 days of that employment
9(whether or not consecutive) or before the close of the 270th
10calendar day after the day in which that employee completes 90
11days of employment with the taxpayer, the tax imposed by this
12part for the taxable year in which that employment is terminated
13shall be increased by an amount equal to the credit allowed under
14subdivision (a) for that taxable
year and all prior taxable years
15attributable to qualified wages paid or incurred with respect to that
16employee.
17(B) If the seasonal employment of any qualified employee, with
18respect to whom qualified wages are taken into account under
19subdivision (a), is not continued by the taxpayer for a period of
20270 days of employment during the 60-month period beginning
21with the day the qualified employee commences seasonal
22employment with the taxpayer, the tax imposed by this part, for
23the taxable year that includes the 60th month following the month
24in which the qualified employee commences seasonal employment
25with the taxpayer, shall be increased by an amount equal to the
26credit allowed under subdivision (a) for that taxable year and all
27prior taxable years attributable to qualified wages paid or incurred
28with respect to that qualified employee.
29(2) (A) Subparagraph
(A) of paragraph (1)begin delete shallend deletebegin insert doesend insert not apply
30to any of the following:
31(i) A termination of employment of a qualified employee who
32voluntarily leaves the employment of the taxpayer.
33(ii) A termination of employment of a qualified employee who,
34before the close of the period referred to in paragraph (1), becomes
35disabled and unable to perform the services of that employment,
36unless that disability is removed before the close of that period
37and the taxpayer fails to offer reemployment to that employee.
38(iii) A termination of employment of a qualified employee, if
39it is determined that the termination was due to the misconduct (as
P686 1
defined in Sections 1256-30 to 1256-43, inclusive, of Title 22 of
2the California Code of Regulations) of that employee.
3(iv) A termination of employment of a qualified employee due
4to a substantial reduction in the trade or business operations of the
5taxpayer.
6(v) A termination of employment of a qualified employee, if
7that employee is replaced by other qualified employees so as to
8create a net increase in both the number of employees and the
9hours of employment.
10(B) Subparagraph (B) of paragraph (1)begin delete shallend deletebegin insert doesend insert not apply to
11any of the following:
12(i) A failure to
continue the seasonal employment of a qualified
13employee who voluntarily fails to return to the seasonal
14employment of the taxpayer.
15(ii) A failure to continue the seasonal employment of a qualified
16employee who, before the close of the period referred to in
17subparagraph (B) of paragraph (1), becomes disabled and unable
18to perform the services of that seasonal employment, unless that
19disability is removed before the close of that period and the
20taxpayer fails to offer seasonal employment to that qualified
21employee.
22(iii) A failure to continue the seasonal employment of a qualified
23employee, if it is determined that the failure to continue the
24seasonal employment was due to the misconduct (as defined in
25Sections 1256-30 to 1256-43, inclusive, of Title 22 of the California
26Code of Regulations) of that qualified employee.
27(iv) A failure to continue seasonal employment of a qualified
28employee due to a substantial reduction in the regular seasonal
29trade or business operations of the taxpayer.
30(v) A failure to continue the seasonal employment of a qualified
31employee, if that qualified employee is replaced by other qualified
32employees so as to create a net increase in both the number of
33seasonal employees and the hours of seasonal employment.
34(C) For purposes of paragraph (1), the employment relationship
35between the taxpayer and a qualified employee shall not be treated
36as terminated by reason of a mere change in the form of conducting
37the trade or business of the taxpayer, if the qualified employee
38continues to be employed in that trade or business and the taxpayer
39retains a substantial interest in that trade or business.
P687 1(3) begin deleteAny end deletebegin insertAn end insertincrease in tax under paragraph (1) shall not be
2treated as tax imposed by this part for purposes of determining the
3amount of any credit allowable under this part.
4(f) In the case of an estate or trust, both of the following apply:
5(1) The qualified wages for any taxable year shall be apportioned
6between the estate or trust and the beneficiaries on the basis of the
7income of the estate or trust allocable to each.
8(2) begin deleteAny end deletebegin insertA end insertbeneficiary
to whom any qualified wages have been
9apportioned under paragraph (1) shall be treated, for purposes of
10this part, as the employer with respect to those wages.
11(g) For purposes of this section, “enterprise zone” means an
12area designated as an enterprise zone pursuant to Chapter 12.8
13(commencing with Section 7070) of Division 7 of Title 1 of the
14Government Code.
15(h) The credit allowable under this section shall be reduced by
16the credit allowed under Sections 17053.10, 17053.17, and
1717053.46 claimed for the same employee. The credit shall also be
18reduced by the federal credit allowed under Section 51 of the
19Internal Revenue Code.
20In addition, any deduction otherwise allowed under this part for
21the wages or salaries paid or incurred by the taxpayer upon which
22the credit is based shall be reduced by the amount of the credit,
23prior to any
reduction required by subdivision (i) or (j).
24(i) In the case where the credit otherwise allowed under this
25section exceeds the “net tax” for the taxable year, that portion of
26the credit that exceeds the “net tax” may be carried over and added
27to the credit, if any, in the succeeding 10 taxable years, if necessary,
28until the credit is exhausted. The credit shall be applied first to the
29earliest taxable years possible.
30(j) (1) The amount of the credit otherwise allowed under this
31section and Section 17053.70, including any credit carryover from
32prior years, that may reduce the “net tax” for the taxable year shall
33not exceed the amount of tax which would be imposed on the
34taxpayer’s business income attributable to the enterprise zone
35determined as if that attributable income represented all of the
36income of the taxpayer subject to tax under this part.
37(2) Attributable income shall be that portion of the taxpayer’s
38California source business income that is apportioned to the
39enterprise zone. For that purpose, the taxpayer’s business income
40attributable to sources in this state first shall be determined in
P688 1accordance with Chapter 17 (commencing with Section 25101) of
2Part 11. That business income shall be further apportioned to the
3enterprise zone in accordance with Article 2 (commencing with
4Section 25120) of Chapter 17 of Part 11, modified for purposes
5of this section in accordance with paragraph (3).
6(3) Business income shall be apportioned to the enterprise zone
7by multiplying the total California business income of the taxpayer
8by a fraction, the numerator of which is the property factor plus
9the payroll factor, and the denominator of which is two. For
10purposes of this paragraph:
11(A) The property factor is a fraction, the numerator of which is
12the average value of the taxpayer’s real and tangible personal
13property owned or rented and used in the enterprise zone during
14the taxable year, and the denominator of which is the average value
15of all the taxpayer’s real and tangible personal property owned or
16rented and used in this state during the taxable year.
17(B) The payroll factor is a fraction, the numerator of which is
18the total amount paid by the taxpayer in the enterprise zone during
19the taxable year for compensation, and the denominator of which
20is the total compensation paid by the taxpayer in this state during
21the taxable year.
22(4) The portion of any credit remaining, if any, after application
23of this subdivision, shall be carried over to succeeding taxable
24years, if necessary, until the credit
is exhausted, as if it were an
25amount exceeding the “net tax” for the taxable year, as provided
26in subdivision (i). However, the portion of any credit remaining
27for carryover to taxable years beginning on or after January 1,
282014, if any, after application of this subdivision, shall be carried
29over only to the succeeding 10 taxable years if necessary, until the
30credit is exhausted, as if it were an amount exceeding the “net tax”
31for the taxable year, as provided in subdivision (i).
32(k) The changes made to this section by the act adding this
33subdivisionbegin delete shallend delete apply to taxable years beginning on or after
34January 1, 1997.
35(l) (1) Except as provided in paragraph (2), this section shall
36cease to be operative on January 1, 2014, and shall be repealed on
37December 1, 2019. A
credit shall not be allowed under this section
38with respect to an employee who first commences employment
39with a taxpayer on or after January 1, 2014.
P689 1(2) This section shall continue to apply with respect to qualified
2employees who are employed by the taxpayer within the enterprise
3zone within the 60-month period immediately preceding January
41, 2014, and qualified wages paid or incurred with respect to those
5qualified employees shall continue to qualify for the credit under
6this section for taxable years beginning on or after January 1, 2014,
7in accordance with this section, as amended by the act adding this
8subdivision.
Section 17058 of the Revenue and Taxation Code
10 is amended to read:
(a) (1) There shall be allowed as a credit against the
12“net tax” (as defined in Section 17039) a state low-income housing
13credit in an amount equal to the amount determined in subdivision
14(c), computed in accordance with the provisions of Section 42 of
15the Internal Revenue Code, except as otherwise provided in this
16section.
17(2) “Taxpayer” for purposes of this section means the sole owner
18in the case of an individual, the partners in the case of a partnership,
19and the shareholders in the case of an “S” corporation.
20(3) “Housing sponsor” for purposes of this section means the
21sole owner in the case of an individual, the partnership in the case
22of a partnership, and the “S”
corporation in the case of an “S”
23corporation.
24(b) (1) The amount of the credit allocated to any housing
25sponsor shall be authorized by the California Tax Credit Allocation
26Committee, or any successor thereof, based on a project’s need
27for the credit for economic feasibility in accordance with the
28requirements of this section.
29(A) The low-income housing project shall be located in
30California and shall meet either of the following requirements:
31(i) Except for projects to provide farmworker housing, as defined
32in subdivision (h) of Section 50199.7 of the Health and Safety
33Code, that are allocated credits solely under the set-aside described
34in subdivision (c) of Section 50199.20 of the Health and Safety
35Code, the project’s housing sponsor has been allocated by the
36California Tax Credit Allocation
Committee a credit for federal
37income tax purposes under Section 42 of the Internal Revenue
38Code.
39(ii) It qualifies for a credit under Section 42(h)(4)(B) of the
40Internal Revenue Code.
P690 1(B) The California Tax Credit Allocation Committee shall not
2require fees for the credit under this section in addition to those
3fees required for applications for the tax credit pursuant to Section
442 of the Internal Revenue Code. The committee may require a
5fee if the application for the credit under this section is submitted
6in a calendar year after the year the application is submitted for
7the federal tax credit.
8(C) (i) For a project that receives a preliminary reservation of
9the state low-income housing tax credit, allowed pursuant to
10subdivision (a), on or after January 1, 2009, and before January 1,
112016,
the credit shall be allocated to the partners of a partnership
12owning the project in accordance with the partnership agreement,
13regardless of how the federal low-income housing tax credit with
14respect to the project is allocated to the partners, or whether the
15allocation of the credit under the terms of the agreement has
16substantial economic effect, within the meaning of Section 704(b)
17of the Internal Revenue Code.
18(ii) To the extent the allocation of the credit to a partner under
19this section lacks substantial economic effect, any loss or deduction
20otherwise allowable under this part that is attributable to the sale
21or other disposition of that partner’s partnership interest made prior
22to the expiration of the federal credit shall not be allowed in the
23taxable year in which the sale or other disposition occurs, but shall
24instead be deferred until and treated as if it occurred in the first
25taxable year immediately following the taxable year in
which the
26federal credit period expires for the project described in clause (i).
27(iii) This subparagraphbegin delete shallend deletebegin insert doesend insert not apply to a project that
28receives a preliminary reservation of state low-income housing
29tax credits under the set-aside described in subdivision (c) of
30Section 50199.20 of the Health and Safety Code unless the project
31also receives a preliminary reservation of federal low-income
32housing tax credits.
33(iv) This subparagraph shall cease to be operative with respect
34to any project that receives a preliminary reservation of a credit
35on or after January 1, 2016.
36(2) (A) The California Tax Credit
Allocation Committee shall
37certify to the housing sponsor the amount of tax credit under this
38section allocated to the housing sponsor for each credit period.
P691 1(B) In the case of a partnership or an “S” corporation, the
2housing sponsor shall provide a copy of the California Tax Credit
3Allocation Committee certification to the taxpayer.
4(C) The taxpayer shall, upon request, provide a copy of the
5certification to the Franchise Tax Board.
6(D) All elections made by the taxpayer pursuant to Section 42
7of the Internal Revenue Codebegin delete shallend delete apply to this section.
8(E) (i) Except as described in clause (ii), for buildings located
9in designated difficult
development areas (DDAs) or qualified
10census tracts (QCTs), as defined in Section 42(d)(5)(B) of the
11Internal Revenue Code, credits may be allocated under this section
12in the amounts prescribed in subdivision (c), provided that the
13amount of credit allocated under Section 42 of the Internal Revenue
14Code is computed on 100 percent of the qualified basis of the
15building.
16(ii) Notwithstanding clause (i), the California Tax Credit
17Allocation Committee may allocate the credit for buildings located
18in DDAs or QCTs that are restricted to having 50 percent of its
19occupants be special needs households, as defined in the California
20Code of Regulations by the California Tax Credit Allocation
21Committee, even if the taxpayer receives federal credits pursuant
22to Section 42(d)(5)(B) of the Internal Revenue Code, provided
23that the credit allowed under this section shall not exceed 30
24percent of the eligible basis of the building.
25(G)
end delete
26begin insert(F)end insert (i) The California Tax Credit Allocation Committee may
27allocate a credit under this section in exchange for a credit allocated
28pursuant to Section 42(d)(5)(B) of the Internal Revenue Code in
29amounts up to 30 percent of the eligible basis of a building if the
30credits allowed under Section 42 of the Internal Revenue Code are
31reduced by an equivalent amount.
32(ii) An equivalent amount shall be determined by the California
33Tax Credit Allocation Committee based upon the relative amount
34required to produce an equivalent state tax credit to the taxpayer.
35(c) Section 42(b) of the Internal Revenue Code shall be modified
36as follows:
37(1) In the case of any qualified low-income building placed in
38service by the housing sponsor during 1987, the term “applicable
39percentage” means 9 percent for each of the first three years and
P692 13 percent for the fourth year for new buildings (whether or not the
2building is federally subsidized) and for existing buildings.
3(2) In the case of any qualified low-income building that receives
4an allocation after 1989 and is a new building not federally
5subsidized, the term “applicable percentage” means the following:
6(A) For each of the first three years, the percentage prescribed
7by the Secretary of the Treasury for new buildings that are not
8federally subsidized for the taxable year, determined in accordance
9with the requirements of Section 42(b)(2) of the Internal Revenue
10Code, in lieu of the percentage prescribed inbegin delete Section 42(b)(1)(A)end delete
11begin insert
Section 42(b)(1)(B)end insert of the Internal Revenue Code.
12(B) For the fourth year, the difference between 30 percent and
13the sum of the applicable percentages for the first three years.
14(3) In the case of any qualified low-income building that receives
15an allocation after 1989 and that is a new building that is federally
16subsidized or that is an existing building that is “at risk of
17conversion,” the term “applicable percentage” means the following:
18(A) For each of the first three years, the percentage prescribed
19by the Secretary of the Treasury for new buildings that are federally
20subsidized for the taxable year.
21(B) For the fourth year, the difference between 13 percent and
22the sum of the applicable percentages for the
first three years.
23(4) For purposes of this section, the term “at risk of conversion,”
24with respect to an existing property means a property that satisfies
25all of the following criteria:
26(A) The property is a multifamily rental housing development
27in which at least 50 percent of the units receive governmental
28assistance pursuant to any of the following:
29(i) New construction, substantial rehabilitation, moderate
30rehabilitation, property disposition, and loan management set-aside
31programs, or any other program providing project-based assistance
32pursuant to Section 8 of the United States Housing Act of 1937,
33Section 1437f of Title 42 of the United States Code, as amended.
34(ii) The Below-Market-Interest-Rate Program pursuant to
35Section 221(d)(3) of the
National Housing Act, Sections
361715l(d)(3) and (5) of Title 12 of the United States Code.
37(iii) Section 236 of the National Housing Act, Section 1715z-1
38of Title 12 of the United States Code.
P693 1(iv) Programs for rent supplement assistance pursuant to Section
2101 of the Housing and Urban Development Act of 1965, Section
31701s of Title 12 of the United States Code, as amended.
4(v) Programs pursuant to Section 515 of the Housing Act of
51949, Section 1485 of Title 42 of the United States Code, as
6amended.
7(vi) The low-income housing credit program set forth in Section
842 of the Internal Revenue Code.
9(B) The restrictions on rent and income levels will terminate or
10the federal insured
mortgage on the property is eligible for
11prepayment any time within five years before or after the date of
12application to the California Tax Credit Allocation Committee.
13(C) The entity acquiring the property enters into a regulatory
14agreement that requires the property to be operated in accordance
15with the requirements of this section for a period equal to the
16greater of 55 years or the life of the property.
17(D) The property satisfies the requirements of Section 42(e) of
18the Internal Revenue Code regarding rehabilitation expenditures,
19except that the provisions of Section 42(e)(3)(A)(ii)(I)begin delete shallend deletebegin insert doend insert not
20apply.
21(d) The term
“qualified low-income housing project” as defined
22in Section 42(c)(2) of the Internal Revenue Code is modified by
23adding the following requirements:
24(1) The taxpayer shall be entitled to receive a cash distribution
25from the operations of the project, after funding required reserves,
26that, at the election of the taxpayer, is equal to:
27(A) An amount not to exceed 8 percent of the lesser of:
28(i) The owner equity that shall include the amount of the capital
29contributions actually paid to the housing sponsor and shall not
30include any amounts until they are paid on an investor note.
31(ii) Twenty percent of the adjusted basis of the building as of
32the close of the first taxable year of the credit period.
33(B) The amount of the cashflow from those units in the building
34that are not low-income units. For purposes of computing cashflow
35under this subparagraph, operating costs shall be allocated to the
36low-income units using the “floor space fraction,” as defined in
37Section 42 of the Internal Revenue Code.
38(C) Any amount allowed to be distributed under subparagraph
39(A) that is not available for distribution during the first five years
40of the compliance period may be accumulated and distributed any
P694 1time during the first 15 years of the compliance period but not
2thereafter.
3(2) The limitation on returnbegin delete shall applyend deletebegin insert appliesend insert in the aggregate
4to
the partners if the housing sponsor is a partnership and in the
5aggregate to the shareholders if the housing sponsor is an “S”
6corporation.
7(3) The housing sponsor shall apply any cash available for
8distribution in excess of the amount eligible to be distributed under
9paragraph (1) to reduce the rent on rent-restricted units or to
10increase the number of rent-restricted units subject to the tests of
11Section 42(g)(1) of the Internal Revenue Code.
12(e) The provisions of Section 42(f) of the Internal Revenue Code
13shall be modified as follows:
14(1) The term “credit period” as defined in Section 42(f)(1) of
15the Internal Revenue Code is modified by substituting “four taxable
16years” for “10 taxable years.”
17(2) The special rule for the first taxable year of the
credit period
18under Section 42(f)(2) of the Internal Revenue Codebegin delete shallend deletebegin insert doesend insert
19 not apply to the tax credit under this section.
20(3) Section 42(f)(3) of the Internal Revenue Code is modified
21to read:
22If, as of the close of any taxable year in the compliance period,
23after the first year of the credit period, the qualified basis of any
24building exceeds the qualified basis of that building as of the close
25of the first year of the credit period, the housing sponsor, to the
26extent of its tax credit allocation, shall be eligible for a credit on
27the excess in an amount equal to the applicable percentage
28determined pursuant to subdivision (c) for the four-year period
29beginning with the taxable year in which the increase in
qualified
30basis occurs.
31(f) The provisions of Section 42(h) of the Internal Revenue
32Code shall be modified as follows:
33(1) Section 42(h)(2) of the Internal Revenue Codebegin delete shallend deletebegin insert doesend insert
34 not begin deletebe applicableend deletebegin insert applyend insert and instead the following provisionsbegin delete shall begin insert apply:end insert
35be applicable:end delete
36The
total amount for the four-year period of the housing credit
37dollars allocated in a calendar year to any building shall reduce
38the aggregate housing credit dollar amount of the California Tax
39Credit Allocation Committee for the calendar year in which the
40allocation is made.
P695 1(2) Paragraphs (3), (4), (5), (6)(E)(i)(II), (6)(F), (6)(G), (6)(I),
2(7), and (8) of Section 42(h) of the Internal Revenue Codebegin delete shallend delete
3begin insert doend insert notbegin delete be applicableend deletebegin insert applyend insert to this section.
4(g) The aggregate housing credit dollar amount that may
be
5allocated annually by the California Tax Credit Allocation
6Committee pursuant to this section, Section 12206, and Section
723610.5 shall be an amount equal to the sum of all the following:
8(1) Seventy million dollars ($70,000,000) for the 2001 calendar
9year, and, for the 2002 calendar year and each calendar year
10thereafter, seventy million dollars ($70,000,000) increased by the
11percentage, if any, by which the Consumer Price Index for the
12preceding calendar year exceeds the Consumer Price Index for the
132001 calendar year. For the purposes of this paragraph, the term
14“Consumer Price Index” means the last Consumer Price Index for
15All Urban Consumers published by the federal Department of
16Labor.
17(2) The unused housing credit ceiling, if any, for the preceding
18calendar years.
19(3) The amount of housing credit ceiling
returned in the calendar
20year. For purposes of this paragraph, the amount of housing credit
21dollar amount returned in the calendar year equals the housing
22credit dollar amount previously allocated to any project that does
23not become a qualified low-income housing project within the
24period required by this section or to any project with respect to
25which an allocation is canceled by mutual consent of the California
26Tax Credit Allocation Committee and the allocation recipient.
27(4) Five hundred thousand dollars ($500,000) per calendar year
28for projects to provide farmworker housing, as defined in
29subdivision (h) of Section 50199.7 of the Health and Safety Code.
30(5) The amount of any unallocated or returned credits under
31former Sections 17053.14, 23608.2, and 23608.3, as those sections
32read prior to January 1, 2009, until fully exhausted for projects to
33provide farmworker housing, as
defined in subdivision (h) of
34Section 50199.7 of the Health and Safety Code.
35(h) The term “compliance period” as defined in Section 42(i)(1)
36of the Internal Revenue Code is modified to mean, with respect to
37any building, the period of 30 consecutive taxable years beginning
38with the first taxable year of the credit period with respect thereto.
39(i) Section 42(j) of the Internal Revenue Codebegin delete shallend deletebegin insert doesend insert notbegin delete be begin insert applyend insert and the following requirements of this section
40applicableend delete
P696 1shall be set forth in a regulatory
agreement between the California
2Tax Credit Allocation Committee and the housing sponsor, which
3agreement shall be subordinated, when required, to any lien or
4encumbrance of any banks or other institutional lenders to the
5project. The regulatory agreement entered into pursuant to
6subdivision (f) of Section 50199.14 of the Health and Safety Code
7shall apply, provided that the agreement includes all of the
8following provisions:
9(1) A term not less than the compliance period.
10(2) A requirement that the agreement be recorded in the official
11records of the county in which the qualified low-income housing
12project is located.
13(3) A provision stating which state and local agencies can
14enforce the regulatory agreement in the event the housing sponsor
15fails to satisfy any of the requirements of this section.
16(4) A provision that the regulatory agreement shall be deemed
17a contract enforceable by tenants as third-party beneficiaries thereto
18and that allows individuals, whether prospective, present, or former
19occupants of the building, who meet the income limitation
20applicable to the building, the right to enforce the regulatory
21agreement in any state court.
22(5) A provision incorporating the requirements of Section 42
23of the Internal Revenue Code as modified by this section.
24(6) A requirement that the housing sponsor notify the California
25Tax Credit Allocation Committee or its designee if there is a
26determination by the Internal Revenue Service that the project is
27not in compliance with Section 42(g) of the Internal Revenue Code.
28(7) A requirement that the
housing sponsor, as security for the
29performance of the housing sponsor’s obligations under the
30regulatory agreement, assign the housing sponsor’s interest in rents
31that it receives from the project, provided that until there is a
32default under the regulatory agreement, the housing sponsor is
33entitled to collect and retain the rents.
34(8) The remedies available in the event of a default under the
35regulatory agreement that is not cured within a reasonable cure
36period, include, but are not limited to, allowing any of the parties
37designated to enforce the regulatory agreement to collect all rents
38with respect to the project; taking possession of the project and
39operating the project in accordance with the regulatory agreement
40until the enforcer determines the housing sponsor is in a position
P697 1to operate the project in accordance with the regulatory agreement;
2applying to any court for specific performance; securing the
3appointment of a receiver to
operate the project; or any other relief
4as may be appropriate.
5(j) (1) The committee shall allocate the housing credit on a
6regular basis consisting of two or more periods in each calendar
7year during which applications may be filed and considered. The
8committee shall establish application filing deadlines, the maximum
9percentage of federal and state low-income housing tax credit
10ceiling that may be allocated by the committee in that period, and
11the approximate date on which allocations shall be made. If the
12enactment of federal or state law, the adoption of rules or
13regulations, or other similar events prevent the use of two allocation
14periods, the committee may reduce the number of periods and
15adjust the filing deadlines, maximum percentage of credit allocated,
16and the allocation dates.
17(2) The committee shall adopt a qualified allocation plan, as
18provided
in Section 42(m)(1) of the Internal Revenue Code. In
19adopting this plan, the committee shall comply with the provisions
20of Sections 42(m)(1)(B) and 42(m)(1)(C) of the Internal Revenue
21Code.
22(3) Notwithstanding Section 42(m) of the Internal Revenue
23Code, the California Tax Credit Allocation Committee shall
24allocate housing credits in accordance with the qualified allocation
25plan and regulations, which shall include the following provisions:
26(A) All housing sponsors, as defined by paragraph (3) of
27subdivision (a), shall demonstrate at the time the application is
28filed with the committee that the project meets the following
29threshold requirements:
30(i) The housing sponsor shall demonstrate there is a need and
31demand for low-income housing in the community or region for
32which it is proposed.
33(ii) The project’s proposed financing, including tax credit
34proceeds, shall be sufficient to complete the project and that the
35proposed operating income shall be adequate to operate the project
36for the extended use period.
37(iii) The project shall have enforceable financing commitments,
38either construction or permanent financing, for at least 50 percent
39of the total estimated financing of the project.
P698 1(iv) The housing sponsor shall have and maintain control of the
2site for the project.
3(v) The housing sponsor shall demonstrate that the project
4complies with all applicable local land use and zoning ordinances.
5(vi) The housing sponsor shall demonstrate that the project
6development team has the
experience and the financial capacity
7to ensure project completion and operation for the extended use
8period.
9(vii) The housing sponsor shall demonstrate the amount of tax
10credit that is necessary for the financial feasibility of the project
11and its viability as a qualified low-income housing project
12throughout the extended use period, taking into account operating
13expenses, a supportable debt service, reserves, funds set aside for
14rental subsidies and required equity, and a development fee that
15does not exceed a specified percentage of the eligible basis of the
16project prior to inclusion of the development fee in the eligible
17basis, as determined by the committee.
18(B) The committee shall give a preference to those projects
19satisfying all of the threshold requirements of subparagraph (A)
20if both of the following apply:
21(i) The project serves the lowest income tenants at rents
22affordable to those tenants.
23(ii) The project is obligated to serve qualified tenants for the
24longest period.
25(C) In addition to the provisions of subparagraphs (A) and (B),
26the committee shall use the following criteria in allocating housing
27credits:
28(i) Projects serving large families in which a substantial number,
29as defined by the committee, of all residential units is comprised
30of low-income units with three and more bedrooms.
31(ii) Projects providing single-room occupancy units serving
32very low income tenants.
33(iii) Existing projects that are “at risk of conversion,” as defined
34by paragraph (4) of subdivision
(c).
35(iv) Projects for which a public agency provides direct or indirect
36long-term financial support for at least 15 percent of the total
37project development costs or projects for which the owner’s equity
38constitutes at least 30 percent of the total project development
39costs.
P699 1(v) Projects that provide tenant amenities not generally available
2to residents of low-income housing projects.
3(4) For purposes of allocating credits pursuant to this section,
4the committee shall not give preference to any project by virtue
5of the date of submission of its application.
6(k) Section 42(l) of the Internal Revenue Code shall be modified
7as follows:
8The term “secretary” shall be replaced by the term “California
9
Franchise Tax Board.”
10(l) In the casebegin delete whereend deletebegin insert in whichend insert the credit allowed under this
11section exceeds the net tax, the excess credit may be carried over
12to reduce the net tax in the following year, and succeeding taxable
13years, if necessary, until the credit has been exhausted.
14(m) A project that received an allocation of a 1989 federal
15housing credit dollar amount shall be eligible to receive an
16allocation of a 1990 state housing credit dollar amount, subject to
17all of the following conditions:
18(1) The project was not placed in service prior to 1990.
19(2) To
the extent the amendments made to this section by the
20Statutes of 1990 conflict with any provisions existing in this section
21prior to those amendments, the prior provisions of law shall prevail.
22(3) Notwithstanding paragraph (2), a project applying for an
23allocation under this subdivisionbegin delete shall beend deletebegin insert isend insert subject to the
24requirements of paragraph (3) of subdivision (j).
25(n) The credit period with respect to an allocation of credit in
261989 by the California Tax Credit Allocation Committee of which
27any amount is attributable to unallocated credit from 1987 or 1988
28shall not begin until after December 31, 1989.
29(o) The provisions of
Section 11407(a) of Public Law 101-508,
30relating to the effective date of the extension of the low-income
31housing credit,begin delete shallend delete apply to calendar years after 1989.
32(p) The provisions of Section 11407(c) of Public Law 101-508,
33relating to election to accelerate credit,begin delete shallend deletebegin insert doend insert not apply.
34(q) Any unused credit may continue to be carried forward, as
35provided in subdivision (l), until the credit has been exhausted.
36This section shall remain in effect on and after December 1,
371990, for as long as Section 42 of the Internal Revenue Code,
38relating to low-income housing credits, remains in effect.
39(r)
end delete
P700 1begin insert(q)end insert The amendments to this section made by the act adding this
2subdivisionbegin delete shallend delete apply only to taxable years beginning on or after
3January 1, 1994.
4(r) This section shall remain in effect on and after December
51, 1990, for as long as Section 42 of the Internal Revenue Code,
6relating to low-income housing credits, remains in effect. Any
7unused credit may continue to be carried forward, as provided in
8subdivision (l), until the credit has been exhausted.
Section 17132.6 of the Revenue and Taxation Code
10 is repealed.
A payment under paragraph (10) of subsection (c) of
12Section 103 of the Ricky Ray Hemophilia Relief Fund Act of 1998
13(42 U.S.C. Sec. 300c-22) to an individual shall be treated for
14purposes of this part, Part 10.2 (commencing with Section 18401),
15and Part 11 (commencing with Section 23001) as damages
16described in Section 104(a)(2) of the Internal Revenue Code.
Section 17141 of the Revenue and Taxation Code,
18as added by Section 1 of Chapter 439 of the Statutes of 2013, is
19amended and renumbered to read:
(a) Gross income shall not include any amount
22received by an employee from an employer to compensate for the
23additional federal income tax liability incurred by the employee
24because, for federal income tax purposes, the same-sex spouse or
25domestic partner of the employee is not considered the spouse of
26the employee under Section 105(a) or Section 106(a) of the Internal
27Revenue Code, including any compensation for the additional
28federal income tax liability incurred with respect to those amounts.
29(b) This section shall remain in effect only until January 1,
2019,
30and as of that date is repealed.
Section 17155 of the Revenue and Taxation Code,
32as added by Section 2 of Chapter 28 of the Statutes of 1996, is
33repealed.
(a) Gross income shall not include any amount,
35including any interest or property, that is received as compensation
36in any taxable year by a taxpayer pursuant to the German Act
37Regulating Unresolved Property Claims, as amended (Gesetz zur
38Regelung offener Vermogensfragen).
P701 1(b) The basis of any property received pursuant to the German
2Act Regulating Unresolved Property Claims shall be the fair market
3value of the property at the time of receipt by the
taxpayer.
Section 17207.7 of the Revenue and Taxation Code
5 is amended to read:
(a) An excess disaster loss, as defined in subdivision
7(c), shall be carried to other taxable years as provided in
8subdivision (b), with respect to losses sustained in the County of
9Mendocino as a result of the tsunami that occurred in March 2011.
10(b) (1) In the case of any loss allowed under Section 165(c) of
11the Internal Revenue Code, relating to limitation of losses of
12individuals, any excess disaster loss shall be carried forward to
13each of the five taxable years following the taxable year for which
14the loss is claimed. However, if there is any excess disaster loss
15remaining after the five-year period, then the applicable percentage,
16as set forth in paragraph (1) of subdivision (b) of Sectionbegin delete 17276.20,end delete
17begin insert
17276,end insert of that excess disaster loss shall be carried forward to each
18of the next 10 taxable years.
19(2) The entire amount of any excess disaster loss as defined in
20subdivision (c) shall be carried to the earliest of the taxable years
21to which, by reason of subdivision (b), the loss may be carried.
22The portion of the loss which shall be carried to each of the other
23taxable years shall be the excess, if any, of the amount of excess
24disaster loss over the sum of the adjusted taxable income for each
25of the prior taxable years to which that excess disaster loss is
26carried.
27(c) “Excess disaster loss” means a disaster loss computed
28pursuant to Section 165 of the Internal Revenue Code which
29exceeds the adjusted taxable income of the year of loss or, if the
30election under Section 165(i) of the Internal Revenue Code is
31made, the adjusted taxable income
of the year preceding the loss.
32(d) This section and Section 165(i) of the Internal Revenue Code
33begin delete shall be applicableend deletebegin insert applyend insert to any of the losses listed in subdivision
34(a) sustained in any county or city in this state which was
35proclaimed by the Governor to be in a state of disaster.
36(e) Losses allowable under this sectionbegin delete mayend deletebegin insert shallend insert not be taken
37into account in computing a net operating loss deduction under
38Section 172 of the Internal Revenue Code.
39(f) For purposes of this section, “adjusted taxable income” shall
40be defined by Section 1212(b)(2)(B) of the Internal Revenue Code.
P702 1(g) For losses described in subdivision (a), the election under
2Section 165(i) of the Internal Revenue Code may be made on a
3return or amended return filed on or before the due date of the
4return (determined with regard to extension) for the taxable year
5in which the disaster occurred.
Section 17207.8 of the Revenue and Taxation Code
7 is amended to read:
(a) An excess disaster loss, as defined in subdivision
9(c), shall be carried to other taxable years as provided in
10subdivision (b), with respect to losses sustained in the County of
11San Mateo as a result of the explosion and fire that occurred in
12September 2010.
13(b) (1) In the case of any loss allowed under Section 165(c) of
14the Internal Revenue Code, relating to limitation of losses of
15individuals, any excess disaster loss shall be carried forward to
16each of the five taxable years following the taxable year for which
17the loss is claimed. However, if there is any excess disaster loss
18remaining after the five-year period, then the applicable percentage,
19as set forth in paragraph (1) of subdivision (b) of Sectionbegin delete 17276.20,end delete
20begin insert
17276,end insert of that excess disaster loss shall be carried forward to each
21of the next 10 taxable years.
22(2) The entire amount of any excess disaster loss as defined in
23subdivision (c) shall be carried to the earliest of the taxable years
24to which, by reason of subdivision (b), the loss may be carried.
25The portion of the loss which shall be carried to each of the other
26taxable years shall be the excess, if any, of the amount of excess
27disaster loss over the sum of the adjusted taxable income for each
28of the prior taxable years to which that excess disaster loss is
29carried.
30(c) “Excess disaster loss” means a disaster loss computed
31pursuant to Section 165 of the Internal Revenue Code which
32exceeds the adjusted taxable income of the year of loss or, if the
33 election under Section 165(i) of the Internal Revenue Code is
34made, the adjusted taxable income
of the year preceding the loss.
35(d) This section and Section 165(i) of the Internal Revenue Code
36begin delete shall be applicableend deletebegin insert applyend insert to any of the losses listed in subdivision
37(a) sustained in any county or city in this state which was
38proclaimed by the Governor to be in a state of disaster.
P703 1(e) Losses allowable under this sectionbegin delete mayend deletebegin insert shallend insert not be taken
2into account in computing a net operating loss deduction under
3Section 172 of the Internal Revenue Code.
4(f) For purposes of this section, “adjusted taxable income” shall
5be defined by Section 1212(b)(2)(B) of the Internal Revenue Code.
6(g) For losses described in subdivision (a), the election under
7Section 165(i) of the Internal Revenue Code may be made on a
8return or amended return filed on or before the due date of the
9return (determined with regard to extension) for the taxable year
10in which the disaster occurred.
Section 17276.20 of the Revenue and Taxation Code
12 is amended and renumbered to read:
Except as provided in Sections 17276.1, 17276.2,
1517276.4, 17276.5, 17276.6, and 17276.7, the deduction provided
16by Section 172 of the Internal Revenue Code, relating to net
17operating loss deduction, shall be modified as follows:
18(a) (1) Net operating losses attributable to taxable years
19beginning before January 1, 1987, shall not be allowed.
20(2) A net operating loss shall not be carried forward to any
21taxable year beginning before January 1, 1987.
22(b) (1) Except as provided in paragraphs (2) and (3), the
23provisions of Section 172(b)(2) of the Internal Revenue Code,
24relating to amount of carrybacks and carryovers, shall be modified
25so that the applicable percentage of the entire amount of the net
26operating loss for any taxable year shall be eligible for carryover
27to any subsequent taxable year. For purposes of this subdivision,
28the applicable percentage shall be:
29(A) Fifty percent for any taxable year beginning before January
301, 2000.
31(B) Fifty-five percent for any taxable year beginning on or after
32January 1, 2000, and before January 1, 2002.
33(C) Sixty percent for any taxable year beginning on or after
34January 1, 2002, and before January 1, 2004.
35(D) One hundred
percent for any taxable year beginning on or
36after January 1, 2004.
37(2) In the case of a taxpayer who has a net operating loss in any
38taxable year beginning on or after January 1, 1994, and who
39operates a new business during that taxable year, each of the
P704 1following shall apply to each loss incurred during the first three
2taxable years of operating the new business:
3(A) If the net operating loss is equal to or less than the net loss
4from the new business, 100 percent of the net operating loss shall
5be carried forward as provided in subdivision (d).
6(B) If the net operating loss is greater than the net loss from the
7new business, the net operating loss shall be carried over as
8follows:
9(i) With respect to an amount equal to the net loss from the new
10
business, 100 percent of that amount shall be carried forward as
11provided in subdivision (d).
12(ii) With respect to the portion of the net operating loss that
13exceeds the net loss from the new business, the applicable
14percentage of that amount shall be carried forward as provided in
15subdivision (d).
16(C) For purposes of Section 172(b)(2) of the Internal Revenue
17Code, the amount described in clause (ii) of subparagraph (B) shall
18be absorbed before the amount described in clause (i) of
19subparagraph (B).
20(3) In the case of a taxpayer who has a net operating loss in any
21taxable year beginning on or after January 1, 1994, and who
22operates an eligible small business during that taxable year, each
23of the following shall apply:
24(A) If the net operating loss is
equal to or less than the net loss
25from the eligible small business, 100 percent of the net operating
26loss shall be carried forward to the taxable years specified in
27subdivision (d).
28(B) If the net operating loss is greater than the net loss from the
29eligible small business, the net operating loss shall be carried over
30as follows:
31(i) With respect to an amount equal to the net loss from the
32eligible small business, 100 percent of that amount shall be carried
33forward as provided in subdivision (d).
34(ii) With respect to that portion of the net operating loss that
35exceeds the net loss from the eligible small business, the applicable
36percentage of that amount shall be carried forward as provided in
37subdivision (d).
38(C) For purposes of Section 172(b)(2) of
the Internal Revenue
39Code, the amount described in clause (ii) of subparagraph (B) shall
P705 1be absorbed before the amount described in clause (i) of
2subparagraph (B).
3(4) In the case of a taxpayer who has a net operating loss in a
4taxable year beginning on or after January 1, 1994, and who
5operates a business that qualifies as both a new business and an
6eligible small business under this section, that business shall be
7treated as a new business for the first three taxable years of the
8new business.
9(5) In the case of a taxpayer who has a net operating loss in a
10taxable year beginning on or after January 1, 1994, and who
11operates more than one business, and more than one of those
12businesses qualifies as either a new business or an eligible small
13business under this section, paragraph (2) shall be applied first,
14except that if there is any remaining portion of the net operating
15loss
after application of clause (i) of subparagraph (B) of that
16paragraph, paragraph (3) shall be applied to the remaining portion
17of the net operating loss as though that remaining portion of the
18net operating loss constituted the entire net operating loss.
19(6) For purposes of this section, the term “net loss” means the
20amount of net loss after application of Sections 465 and 469 of the
21Internal Revenue Code.
22(c) Section 172(b)(1) of the Internal Revenue Code, relating to
23years to which the loss may be carried, is modified as follows:
24(1) Net operating loss carrybacks shall not be allowed for any
25net operating losses attributable to taxable years beginning before
26January 1, 2013.
27(2) A net operating loss attributable to taxable years beginning
28on or after
January 1, 2013, shall be a net operating loss carryback
29to each of the two taxable years preceding the taxable year of the
30loss in lieu of the number of years provided therein.
31(A) For a net operating loss attributable to a taxable year
32beginning on or after January 1, 2013, and before January 1, 2014,
33the amount of carryback to any taxable year shall not exceed 50
34percent of the net operating loss.
35(B) For a net operating loss attributable to a taxable year
36beginning on or after January 1, 2014, and before January 1, 2015,
37the amount of carryback to any taxable year shall not exceed 75
38percent of the net operating loss.
39(C) For a net operating loss attributable to a taxable year
40beginning on or after January 1, 2015, the amount of carryback to
P706 1any taxable year shall not exceed 100 percent of the net operating
2
loss.
3(3) Notwithstanding paragraph (2), Section 172(b)(1)(B) of the
4Internal Revenue Code, relating to special rules for REITs, and
5Section 172(b)(1)(E) of the Internal Revenue Code, relating to
6excess interest loss, and Section 172(h) of the Internal Revenue
7Code, relating to corporate equity reduction interest losses, shall
8apply as provided.
9(4) A net operating loss carryback shall not be carried back to
10any taxable year beginning before January 1, 2011.
11(d) (1) (A) For a net operating loss for any taxable year
12beginning on or after January 1, 1987, and before January 1, 2000,
13Section 172(b)(1)(A)(ii) of the Internal Revenue Code is modified
14to substitute “five taxable years” in lieu of “20 taxable years”
15except as otherwise provided in paragraphs (2) and (3).
16(B) For a net operating loss for any taxable year beginning on
17or after January 1, 2000, and before January 1, 2008, Section
18172(b)(1)(A)(ii) of the Internal Revenue Code is modified to
19substitute “10 taxable years” in lieu of “20 taxable years.”
20(2) For any taxable year beginning before January 1, 2000, in
21the case of a “new business,” the “five taxable years” in paragraph
22(1) shall be modified to read as follows:
23(A) “Eight taxable years” for a net operating loss attributable
24to the first taxable year of that new business.
25(B) “Seven taxable years” for a net operating loss attributable
26to the second taxable year of that new business.
27(C) “Six taxable years” for a net operating loss
attributable to
28the third taxable year of that new business.
29(3) For any carryover of a net operating loss for which a
30deduction is denied by Section 17276.3, the carryover period
31specified in this subdivision shall be extended as follows:
32(A) By one year for a net operating loss attributable to taxable
33years beginning in 1991.
34(B) By two years for a net operating loss attributable to taxable
35years beginning prior to January 1, 1991.
36(4) The net operating loss attributable to taxable years beginning
37on or after January 1, 1987, and before January 1, 1994, shall be
38a net operating loss carryover to each of the 10 taxable years
39following the year of the loss if it is incurred by a taxpayer that is
40under the jurisdiction of the court in a Title 11 or
similar case at
P707 1any time during the income year. The loss carryover provided in
2the preceding sentence shall not apply to any loss incurred after
3the date the taxpayer is no longer under the jurisdiction of the court
4in a Title 11 or similar case.
5(e) For purposes of this section:
6(1) “Eligible small business” means any trade or business that
7has gross receipts, less returns and allowances, of less than one
8million dollars ($1,000,000) during the taxable year.
9(2) Except as provided in subdivision (f), “new business” means
10any trade or business activity that is first commenced in this state
11on or after January 1, 1994.
12(3) “Title 11 or similar case” shall have the same meaning as
13in Section 368(a)(3) of the Internal Revenue Code.
14(4) In the case of any trade or business activity conducted by a
15partnership or “S” corporation paragraphs (1) and (2) shall be
16applied to the partnership or “S” corporation.
17(f) For purposes of this section, in determining whether a trade
18or business activity qualifies as a new business under paragraph
19(2) of subdivision (e), the following rulesbegin delete shallend delete apply:
20(1) In any case where a taxpayer purchases or otherwise acquires
21all or any portion of the assets of an existing trade or business
22(irrespective of the form of entity) that is doing business in this
23state (within the meaning of Section 23101), the trade or business
24thereafter conducted by the taxpayer (or any related person) shall
25not be treated as a new business if the aggregate
fair market value
26of the acquired assets (including real, personal, tangible, and
27 intangible property) used by the taxpayer (or any related person)
28in the conduct of its trade or business exceeds 20 percent of the
29aggregate fair market value of the total assets of the trade or
30business being conducted by the taxpayer (or any related person).
31For purposes of this paragraph only, the following rulesbegin delete shallend delete apply:
32(A) The determination of the relative fair market values of the
33acquired assets and the total assets shall be made as of the last day
34of the first taxable year in which the taxpayer (or any related
35person) first uses any of the acquired trade or business assets in
36its business activity.
37(B) begin deleteAny acquired end deletebegin insertAcquired
end insertassets that constituted property
38described in Sectionbegin delete 1221(1)end deletebegin insert
1221(a)(1)end insert of the Internal Revenue
39Code in the hands of the transferor shall not be treated as assets
40acquired from an existing trade or business, unless those assets
P708 1also constitute property described in Sectionbegin delete 1221(1)end deletebegin insert 1221(a)(1)end insert
2 of the Internal Revenue Code in the hands of the acquiring taxpayer
3(or related person).
4(2) Inbegin delete anyend deletebegin insert aend insert casebegin delete whereend deletebegin insert in whichend insert
a taxpayer (or any related
5person) is engaged in one or more trade or business activities in
6this state, or has been engaged in one or more trade or business
7activities in this state within the preceding 36 months (“prior trade
8or business activity”), and thereafter commences an additional
9trade or business activity in this state, the additional trade or
10business activity shall only be treated as a new business if the
11additional trade or business activity is classified under a different
12division of the Standard Industrial Classification (SIC) Manual
13published by the United States Office of Management and Budget,
141987 edition, than are any of the taxpayer’s (or any related
15person’s) current or prior trade or business activities.
16(3) Inbegin delete anyend deletebegin insert aend insert
casebegin delete whereend deletebegin insert
in whichend insert a taxpayer, including all related
17persons, is engaged in trade or business activities wholly outside
18of this state and the taxpayer first commences doing business in
19this state (within the meaning of Section 23101) after December
2031, 1993 (other than by purchase or other acquisition described in
21paragraph (1)), the trade or business activity shall be treated as a
22new business under paragraph (2) of subdivision (e).
23(4) Inbegin delete anyend deletebegin insert aend insert casebegin delete whereend deletebegin insert in whichend insert the legal form under which a
24trade or business activity is being conducted
is changed, the change
25in form shall be disregarded and the determination of whether the
26trade or business activity is a new business shall be made by
27treating the taxpayer as having purchased or otherwise acquired
28all or any portion of the assets of an existing trade or business
29under the rules of paragraph (1).
30(5) “Related person” shall mean any person that is related to
31the taxpayer under either Section 267 or 318 of the Internal
32Revenue Code.
33(6) “Acquire” shall include any gift, inheritance, transfer incident
34to divorce, or any other transfer, whether or not for consideration.
35(7) (A) For taxable years beginning on or after January 1, 1997,
36the term “new business” shall include any taxpayer that is engaged
37in biopharmaceutical activities or other biotechnology activities
38that are described
in Codes 2833 to 2836, inclusive, of the Standard
39Industrial Classification (SIC) Manual published by the United
40States Office of Management and Budget, 1987 edition, and as
P709 1further amended, and that has not received regulatory approval for
2any product from the Food and Drug Administration.
3(B) For purposes of this paragraph:
4(i) “Biopharmaceutical activities” means those activities that
5use organisms or materials derived from organisms, and their
6cellular, subcellular, or molecular components, in order to provide
7pharmaceutical products for human or animal therapeutics and
8diagnostics. Biopharmaceutical activities make use of living
9organisms to make commercial products, as opposed to
10pharmaceutical activities that make use of chemical compounds
11to produce commercial products.
12(ii) “Other biotechnology activities”
means activities consisting
13of the application of recombinant DNA technology to produce
14commercial products, as well as activities regarding pharmaceutical
15delivery systems designed to provide a measure of control over
16the rate, duration, and site of pharmaceutical delivery.
17(g) In computing the modifications under Section 172(d)(2) of
18the Internal Revenue Code, relating to capital gains and losses of
19taxpayers other than corporations, the exclusion provided by
20Section 18152.5 shall not be allowed.
21(h) Notwithstanding any provisions of this section to the
22contrary, a deduction shall be allowed to a “qualified taxpayer” as
23provided in Sections 17276.1, 17276.2, 17276.4, 17276.5, 17276.6,
24and 17276.7.
25(i) The Franchise Tax Board may prescribe appropriate
26regulations to carry out the purposes of this section, including
any
27regulations necessary to prevent the avoidance of the purposes of
28this section through splitups, shell corporations, partnerships, tiered
29ownership structures, or otherwise.
30(j) The Franchise Tax Board may reclassify any net operating
31loss carryover determined under either paragraph (2) or (3) of
32subdivision (b) as a net operating loss carryover under paragraph
33(1) of subdivision (b) upon a showing that the reclassification is
34necessary to prevent evasion of the purposes of this section.
35(k) Except as otherwise provided, the amendments made by
36Chapter 107 of the Statutes of 2000begin delete shallend delete apply to net operating
37losses for taxable years beginning on or after January 1, 2000.
Section 17276.21 of the Revenue and Taxation Code
39 is amended to read:
(a) Notwithstanding Sections 17276, 17276.1,
217276.2, 17276.4, 17276.5, 17276.6,begin delete 17276.7, and 17276.20end deletebegin insert and
317276.7end insert of this code and Section 172 of the Internal Revenue Code,
4no net operating loss deduction shall be allowed for any taxable
5year beginning on or after January 1, 2008, and before January 1,
62012.
7(b) For any net operating loss or carryover of a net operating
8loss for which a deduction is denied by subdivision (a), the
9carryover period under Section 172 of the Internal Revenue Code
10shall be extended as follows:
11(1) By one year, for losses incurred in taxable years beginning
12on or after January 1, 2010, and before January 1, 2011.
13(2) By two years, for losses incurred in taxable years beginning
14on or after January 1, 2009, and before January 1, 2010.
15(3) By three years, for losses incurred in taxable years beginning
16on or after January 1, 2008, and before January 1, 2009.
17(4) By four years, for losses incurred in taxable years beginning
18before January 1, 2008.
19(c) Notwithstanding subdivision (a), a net operating loss
20deduction shall be allowed for carryback of a net operating loss
21attributable to a taxable year beginning on or after January 1, 2013.
22(d) The provisions of this sectionbegin delete shallend deletebegin insert
doend insert not apply to the
23following taxpayers:
24(1) Forbegin delete anyend deletebegin insert aend insert taxable year beginning on or after January 1, 2008,
25and before January 1, 2010, this sectionbegin delete shallend deletebegin insert doesend insert not apply to a
26taxpayer with net business income of less than five hundred
27thousand dollars ($500,000) for the taxable year. For purposes of
28this paragraph, business income means:
29(A) Income from a trade or business, whether conducted by the
30taxpayer or by a passthrough entity owned directly or indirectly
31by
the taxpayer. For purposes of this paragraph, the term
32“passthrough entity” means a partnership or an “S” corporation.
33(B) Income from rental activity.
34(C) Income attributable to a farming business.
35(2) Forbegin delete anyend deletebegin insert aend insert taxable year beginning on or after January 1, 2010,
36and before January 1, 2012, this sectionbegin delete shallend deletebegin insert doesend insert not apply to a
37taxpayer with modified adjusted gross income of less than three
38hundred thousand dollars ($300,000) for the
taxable year. For
39purposes of this paragraph, “modified adjusted gross income”
40means the amount described in paragraph (2) of subdivision (h)
P711 1of Section 17024.5, determined without regard to the deduction
2allowed under Section 172 of the Internal Revenue Code, relating
3to net operating loss deduction.
Section 17507.6 of the Revenue and Taxation Code
5 is repealed.
Section 408A of the Internal Revenue Code, relating
7to Roth IRAs, is modified to additionally provide all of the
8following:
9(a) Section 408A(c)(3) of the Internal Revenue Code is modified
10as follows:
11(1) By substituting the phrase “shall not exceed an amount equal
12to the amount determined under paragraph (2)(A) for such taxable
13year, reduced” in lieu of the phrase “shall be reduced” in Section
14408A(c)(3)(A) of the Internal Revenue
Code.
15(2) By substituting the phrase “in the case of a joint return or a
16married individual filing a separate return” in lieu of the phrase
17“in the case of a joint return” in Section 408A(c)(3)(A)(ii) of the
18Internal Revenue Code.
19(3) By substituting the phrase “taxable year if, for the taxable
20year of the distribution to which such contribution relates” in lieu
21of the phrase “taxable year if” in Section 408A(c)(3)(B) of the
22Internal Revenue Code.
23(4) By substituting the phrase “adjusted gross income exceeds”
24in lieu of the phrase “adjusted gross income for such taxable year
25exceeds” in Section 408A(c)(3)(B)(i) of the Internal Revenue
26Code.
27(5) By substituting the phrase “any amount included in gross
28income under subsection (d)(3) shall not be taken
into account”
29in lieu of the phrase “any amount included in gross income under
30subsection (d)(3) shall not be taken into account and the deduction
31under Section 219 shall be taken into account” in Section
32408A(c)(3)(C)(i) of the Internal Revenue Code.
33(b) (1) Section 408A(d)(1) of the Internal Revenue Code shall
34not apply and in lieu thereof any qualified distribution from a Roth
35IRA shall not be includable in gross income.
36(2) Section 408A(d)(2)(B) of the Internal Revenue Code shall
37not apply and in lieu thereof:
38(A) A payment or distribution from a Roth IRA shall not be
39treated as a qualified distribution under Section 408A(d)(2)(A) of
40the Internal Revenue Code if the payment or distribution is made
P712 1within the five-taxable year period beginning with the first taxable
2year for which the
individual made a contribution to a Roth IRA
3(or the individual’s spouse made a contribution to a Roth IRA)
4established for that individual.
5(B) The term “qualified distribution” shall not include any
6distribution of any contribution described in subdivision (g) and
7any net income allocable to the contribution.
8(c) (1) If a taxpayer has made an election for federal purposes
9under Section 408A(d)(3)(A)(iii) of the Internal Revenue Code,
10as amended by Public Law 105-206, to not have Section
11408A(d)(3)(A)(iii) of the Internal Revenue Code, as amended by
12Public Law 105-206, apply to any distributions during the 1998
13taxable year, that election shall be treated as an election to include
14in gross income for purposes of this part all amounts required to
15be included in gross income for the taxable year by reason of
16Section 408A(d)(3) of the Internal Revenue Code. A
separate
17election for state purposes may not be made under paragraph (3)
18of subdivision (e) of Section 17024.5 and the federal election shall
19be binding for purposes of this part.
20(2) If a taxpayer fails to make an election for federal purposes
21under Section 408A(d)(3)(A)(iii) of the Internal Revenue Code,
22as amended by Public Law 105-206, to not have Section
23408A(d)(3)(A)(iii) of the Internal Revenue Code, as amended by
24Public Law 105-206, apply to any distributions during a taxable
25year, Section 408A(d)(3)(A)(iii) of the Internal Revenue Code
26shall apply to those distributions for state purposes, no election
27under Section 408A(d)(3)(A)(iii) of the Internal Revenue Code,
28as amended by Public Law 105-206, shall be allowed for state
29purposes, and a separate election for state purposes shall not be
30allowed under paragraph (3) of subdivision (e) of Section 17024.5.
31(d) In the case of
a qualified rollover contribution to a Roth IRA
32of a distribution to which Section 408A(d)(3)(A)(iii) of the Internal
33Revenue Code, as amended by Public Law 105-206, applied, the
34following rules shall apply:
35(1) (A) The amount required to be included in gross income
36for each of the first three taxable years in the four-year period
37under Section 408A(d)(3)(A)(iii) of the Internal Revenue Code
38shall be increased by the aggregate distributions from Roth IRAs
39for the taxable year which are allocable under Section 408A(d)(4)
40of the Internal Revenue Code to the portion of the qualified rollover
P713 1contribution required to be included in gross income under Section
2408A(d)(3)(A)(i) of the Internal Revenue Code.
3(B) The amount required to be included in gross income for any
4taxable year under Section 408A(d)(3)(A)(iii) of the Internal
5Revenue Code shall not exceed the
aggregate amount required to
6be included in gross income under Section 408A(d)(3)(A)(iii) of
7the Internal Revenue Code for all taxable years in the four-year
8period (without regard to subparagraph (A)) reduced by amounts
9included for all preceding taxable years.
10(2) (A) If the individual required to include amounts in gross
11income under Section 408A(d)(3)(A)(iii) of the Internal Revenue
12Code dies before all the amounts are included, all remaining
13amounts shall be included in gross income for the taxable year
14which includes the date of death.
15(B) (i) If the spouse of the individual described in subparagraph
16(A) acquires the individual’s entire interest in any Roth IRA to
17which the qualified rollover contribution is properly allocable and
18makes an election for federal purposes under Section 408A(d)(3)(E)
19of the Internal Revenue Code, as
amended by Public Law 105-206,
20to treat the remaining amounts described in subparagraph (A) as
21includable in the spouse’s gross income in the taxable years of the
22spouse ending with or within the taxable years of the individual
23in which the amounts would otherwise have been includable,
24subparagraph (A) shall not apply for state purposes, a separate
25election for state purposes shall not be allowed under paragraph
26(3) of subdivision (e) of Section 17024.5, the federal election shall
27be binding for purposes of this part and that election shall be treated
28as an election to treat the remaining amounts described in
29subparagraph (A) as includable in the spouse’s gross income for
30state purposes in the taxable years of the spouse ending with or
31within the taxable years of the individual in which the amounts
32would otherwise have been includable.
33(ii) If the spouse of the individual described in subparagraph
34(A) acquires the individual’s entire interest
in any Roth IRA to
35which the qualified rollover contribution is properly allocable and
36fails to make an election for federal purposes under Section
37408A(d)(3)(E) of the Internal Revenue Code, as amended by Public
38Law 105-206, or revokes an election previously made for federal
39purposes under Section 408A(d)(3)(E) of the Internal Revenue
40Code, as amended by Public Law 105-206, to treat the remaining
P714 1amounts described in subparagraph (A) as includable in the
2spouse’s gross income in the taxable years of the spouse ending
3with or within the taxable years of the individual in which the
4amounts would otherwise have been includable, no election under
5this paragraph shall be allowed for state purposes, subparagraph
6(A) shall apply for state purposes, and a separate election for state
7purposes shall not be allowed under paragraph (3) of subdivision
8(e) of Section 17024.5.
9(e) (1) If any portion of a distribution from a Roth IRA is
10
properly allocable to a qualified rollover contribution described
11in Section 408A(d)(3) of the Internal Revenue Code, and the
12distribution is made within the five-taxable year period beginning
13with the taxable year in which the contributions were made, then
14Section 72(t) of the Internal Revenue Code shall be applied as if
15that portion were includable in gross income.
16(2) Paragraph (1) shall apply only to the extent of the amount
17of the qualified rollover contribution includable in gross income
18under Section 408A(d)(3)(A)(i) of the Internal Revenue Code.
19(f) Section 408A(d)(3)(D) of the Internal Revenue Code shall
20not apply.
21(g) Section 408A(d)(4) of the Internal Revenue Code shall not
22apply and in lieu thereof:
23(1) (A) Section
408(d)(2) of the Internal Revenue Code shall
24be applied separately with respect to Roth IRAs and other
25individual retirement plans.
26(B) For purposes of applying Section 408A of the Internal
27Revenue Code, as amended by Public Law 105-206, this section
28and Section 72 of the Internal Revenue Code to any distribution
29from a Roth IRA, the distribution shall be treated as made--
30(i) From contributions to the extent that the amount of the
31distribution, when added to all previous distributions from the
32Roth IRA, does not exceed the aggregate contributions to the Roth
33IRA, and
34(ii) From the contributions in the following order:
35(I) Contributions other than qualified rollover contributions to
36which Section 408A(d)(3) of the Internal Revenue Code, as
37amended by
Public Law 105-206, applies.
38(II) Qualified rollover contributions to which Section 408A(d)(3)
39of the Internal Revenue Code, as amended by Public Law 105-206,
40applies on a first-in, first-out basis. Any distribution allocated to
P715 1a qualified rollover contribution under this clause shall be allocated
2first to the portion of the contribution required to be included in
3gross income.
4(h) (1) Except as provided by the Secretary of the Treasury
5(unless the Franchise Tax Board provides otherwise), if, on or
6before the due date for any taxable year, a taxpayer transfers in a
7trustee-to-trustee transfer any contribution to an individual
8retirement plan made during the taxable year from that plan to any
9other individual retirement plan, then, for purposes of this part,
10the contribution shall be treated as having been made to the
11transferee plan (and not the transferor
plan).
12(2) (A) Paragraph (1) shall not apply to the transfer of any
13contribution unless the transfer is accompanied by any net income
14allocable to that contribution.
15(B) Paragraph (1) shall apply to the transfer of any contribution
16only to the extent no deduction was allowed with respect to the
17contribution to the transferor plan.
18(i) For purposes of Section 408A(d) of the Internal Revenue
19Code, the due date for any taxable year is the date prescribed by
20law (including extensions of time) for filing the taxpayer’s return
21for that taxable year.
22(j) For purposes of Section 408A of the Internal Revenue
23Code--
24(1) A simplified employee pension or a simple retirement
25
account may not be designated as a Roth IRA, and
26(2) Contributions to that pension or account shall not be taken
27into account for purposes of Section 408A(c)(2)(B) of the Internal
28Revenue Code.
Section 17565 of the Revenue and Taxation Code,
30as added by Chapter 362 of the Statutes of 1989, is repealed.
(a) The taxable year of a taxpayer may not be different
32than the taxable year used for purposes of the Internal Revenue
33Code, unless initiated or approved by the Franchise Tax Board.
34(b) For purposes of this section, whenever a taxpayer is required
35to make a federal return for a period of less than 12 months, that
36period shall be deemed to be a taxable year, and the provisions of
37Section 17552 shall apply.
The heading of Chapter 10.5 (commencing with
39Section 17940) of Part 10 of Division 2 of the Revenue and
P716 1Taxation Code, as added by Section 1 of Chapter 339 of the
2Statutes of 1987, is repealed.
3
Section 18407 of the Revenue and Taxation Code,
8as amended by Section 326 of Chapter 183 of the Statutes of 2004,
9is repealed.
Section 6011 of the Internal Revenue Code, relating to
11general requirement of return, statement, or list, shall apply, except
12as otherwise provided.
13(a) Section 6011(a) of the Internal Revenue Code, relating to
14general rule, is modified as follows:
15(1) The phrase “any person liable for any tax imposed by Part
1610 (commencing
with Section 17001), Part 11 (commencing with
17Section 23001), or this part,” shall be substituted for the phrase
18“when required by regulations prescribed by the Secretary any
19person made liable for any tax imposed by this title,” contained
20therein.
21(2) “Secretary of the Treasury under Section 6011 of the Internal
22Revenue Code for federal income tax purposes or by the Franchise
23Tax Board” shall be substituted for “Secretary.”
24(3) To additionally provide that “reportable transaction” includes
25any transaction of a type that the Secretary of the Treasury under
26Section 6011 of the Internal Revenue Code for federal income tax
27purposes or the Franchise Tax Board under this section for
28California income or franchise tax purposes determines as having
29a potential for tax avoidance or evasion including deductions,
30basis, credits, entity classification, dividend elimination, or
31omission of
income, and shall be reported on the return or the
32statement required to be made.
33(4) To additionally provide that “listed transaction” includes
34any transaction that is the same as, or substantially similar to, a
35transaction specifically identified by the Secretary of the Treasury
36under Section 6011 of the Internal Revenue Code for federal
37income tax purposes or by the Franchise Tax Board under this
38section for California income or franchise tax purposes, as a tax
39avoidance transaction including deductions, basis, credits, entity
P717 1classification, dividend elimination, or omission of income and
2shall be reported on the return or statement required to be made.
3(A) The Franchise Tax Board shall identify and publish “listed
4transactions” (whether identified by the Secretary of the Treasury
5under Section 6011 of the Internal Revenue Code for federal
6income tax purposes or by the
Franchise Tax Board) through the
7use of Franchise Tax Board Notices or other published positions.
8In addition, the “listed transactions” identified and published
9pursuant to the preceding sentence shall be published on the Web
10site of the Franchise Tax Board.
11(B) The Franchise Tax Board shall conduct a public outreach
12program to make taxpayers aware of the new and increased
13penalties associated with the use of tax avoidance transactions
14including deductions, basis, credits, entity classification, dividend
15elimination, or omission of income.
16(5) Chapter 3.5 (commencing with Section 11340) of Part 1 of
17Division 3 of Title 2 of the Government Code does not apply to
18any standard, criterion, procedure, determination, rule, notice, or
19guideline established or issued by the Franchise Tax Board
20pursuant to paragraph (4).
21(b) Section 6011(b) of the Internal Revenue Code, relating to
22identification of taxpayer, does not apply and, in lieu thereof,
23Section 18408 shall apply.
24(c) Section 6011(c) of the Internal Revenue Code, relating to
25returns, etc., of DISCs and former DISCs and FSCs and former
26FSCs, does not apply.
27(d) Section 6011(d) of the Internal Revenue Code, relating to
28authority to require information concerning Section 912
29allowances, does not apply.
30(e) Section 6011(e) of the Internal Revenue Code, relating to
31regulations requiring returns on magnetic media, etc., shall take
32into account Section 18408 and shall also include the modifications
33made to Section 6011(e) of the Internal Revenue Code by Section
3418408.
35(f) Section 6011(f)(2) of the Internal
Revenue Code, relating to
36incentives, does not apply.
Section 18805 of the Revenue and Taxation Code
38 is amended to read:
(a) begin deleteAny end deletebegin insertA end inserttaxpayer may designate on the tax return
40that a contribution in excess of the tax liability, if any, be made to
P718 1the California Peace Officer Memorial Foundation Fund, which
2is established by Section 18806. That designation is to be used as
3a voluntary checkoff on the tax return.
4(b) The contributions shall be in full dollar amounts and may
5be made individually by each signatory on the joint return.
6(c) A designation shall be made for any taxable year on the
7
initial return for that taxable year, and once made shall be
8irrevocable. In the event that payments and credits reported on the
9return, together with any other credits associated with the
10taxpayer’s account, do not exceed the taxpayer’s liability, the return
11shall be treated as though no designation has been made. In the
12event that no designee is specified, the contribution shall be
13transferred to the General Fund, after reimbursement of the direct
14actual costs of the Franchise Tax Board for the collection and the
15administration of funds under this article.
16(d) In the event a taxpayer designates a contribution to more
17than one account or fund listed on the tax return, and the amount
18available for designation is insufficient to satisfy the total amount
19designated, the contribution shall be allocated among the designees
20on a pro rata basis.
21(e) The Franchise Tax Board shall revise
the forms of the return
22to include a space labeled the “California Peace Officer Memorial
23Foundation Fund” to allow for the designation permitted. The
24forms shall also include in the instructions information that the
25contribution may be in the amount of one dollar ($1) or more and
26that the contribution shall be used to build and maintain the
27California Peacebegin delete Officerend deletebegin insert
Officersend insertbegin insert’end insert Memorial in Sacramento,
28California, and for activities performed by the California Peace
29begin delete Officerend deletebegin insert Officersend insertbegin insert’end insert Memorial Foundation in support of families of
30slain peace officers.
31(f) A deduction shall be allowed under Article 6 (commencing
32with Section 17201) of Chapter 3 for any contribution made
33pursuant to subdivision (a).
Section 18807 of the Revenue and Taxation Code
35 is amended to read:
All money transferred to the California Peace Officer
37Memorial Foundation Fund, upon appropriation by the Legislature,
38shall be allocated as follows:
P719 1(a) To the Franchise Tax Board and the Controller for
2reimbursement of all costs incurred by the Franchise Tax Board
3and the Controller in connection with their duties under this article.
4(b) To thebegin delete Californiaend delete Department of thebegin insert Californiaend insert Highway
5Patrol for allocation to the California Peacebegin delete Officerend deletebegin insert
Officersend insertbegin insert’end insert
6 Memorial Commission for building and maintaining the California
7Peacebegin delete Officerend deletebegin insert Officersend insertbegin insert’end insert Memorial in Sacramento, California, and
8for activities performed by the California Peace Officer Memorial
9Foundation in support of families of slain peace officers.
10(c) All money transferred to the California Peace Officer
11Memorial Foundation Fund prior to the enactment of the act adding
12this subdivision is hereby appropriated for allocation as described
13in subdivisions (a) and
(b).
Section 18808 of the Revenue and Taxation Code
15 is amended to read:
(a) This article shall remain in effect only until January
171, 2021, and as of that date is repealed, unless a later enacted
18statute, which is enacted before January 1, 2021, deletes that date.
19(b) If the repeal date specified in subdivision (a) has been
20deleted, all of the following apply:
21(1) By September 1 of the calendar year beginning after the
22effective date of the act deleting the repeal date and by September
231 of each subsequent calendar year that the California Peacebegin delete Officerend delete
24begin insert Officersend insertbegin insert’end insert
Memorial Foundation Fund appears on a tax return, the
25Franchise Tax Board shall do all of the following:
26(A) Determine the minimum contribution amount required to
27be received during the next calendar year for the fund to appear
28on the tax return for the taxable year that includes that next calendar
29year.
30(B) Provide written notification to the California Peace Officer
31Memorial Commission of the amount determined in subparagraph
32(A).
33(C) Determine whether the amount of contributions estimated
34to be received during the calendar year will equal or exceed the
35minimum contribution amount determined by the Franchise Tax
36Board for the calendar year pursuant to subparagraph (A). The
37Franchise Tax Board shall estimate the amount of contributions
38to be received by using the actual amounts received and an estimate
39
of the contributions that will be received by the end of that calendar
40year.
P720 1(2) If the Franchise Tax Board determines that the amount of
2contributions estimated to be received during a calendar year will
3not at least equal the minimum contribution amount for the calendar
4year, this article is repealed with respect to taxable years beginning
5on or after January 1 of that calendar year.
6(3) For purposes of this section, the minimum contribution
7amount for a calendar year means two hundred fifty thousand
8dollars ($250,000) for the first calendar year beginning after the
9effective date of the act that deleted the repeal date specified in
10subdivision (a), or the minimum contribution amount adjusted
11pursuant to subdivision (c).
12(c) For each calendar year, beginning with calendar year 2005,
13the Franchise Tax Board shall
adjust, on or before September 1 of
14that calendar year, the minimum contribution amount specified in
15subdivision (b) as follows:
16(1) The minimum contribution amount for the calendar year
17shall be an amount equal to the product of the minimum
18contribution amount for the prior calendar year multiplied by the
19inflation factor adjustment as specified in paragraph (2) of
20subdivision (h) of Section 17041, rounded off to the nearest dollar.
21(2) The inflation factor adjustment used for the calendar year
22shall be based on the figures for the percentage change in the
23California Consumer Price Index received on or before August 1
24of the calendar year pursuant to paragraph (1) of subdivision (h)
25of Section 17041.
26(d) Notwithstanding the repeal of this article, any contribution
27amounts designated pursuant to this article prior to
its repeal shall
28continue to be transferred and disbursed in accordance with this
29article as in effect immediately prior to that repeal.
Section 19183 of the Revenue and Taxation Code
31 is amended to read:
(a) (1) A penalty shall be imposed for failure to file
33correct information returns, as required by this part, and that
34penalty shall be determined in accordance with Section 6721 of
35the Internal Revenue Code.
36(2) Section 6721(e) of the Internal Revenue Code is modified
37to the extent that the reference to Section 6041A(b) of the Internal
38Revenue Codebegin delete shallend deletebegin insert doesend insert not apply.
39(b) (1) A penalty shall be imposed for failure to furnish
correct
40payee statements as required by this part, and that penalty shall be
P721 1determined in accordance with Section 6722 of the Internal
2Revenue Code.
3(2) Section 6722(c) of the Internal Revenue Code is modified
4to the extent that the references to Sections 6041A(b) and 6041A(e)
5of the Internal Revenue Codebegin delete shallend deletebegin insert doend insert not apply.
6(c) A penalty shall be imposed for failure to comply with other
7information reporting requirements under this part, and that penalty
8shall be determined in accordance with Section 6723 of the Internal
9Revenue Code.
10(d) (1) The provisions of Section 6724 of the Internal Revenue
11Code
relating to waiver, definitions, and special rules, shall apply,
12except as otherwise provided.
13(2) Section 6724(d)(1) of the Internal Revenue Code is modified
14as follows:
15(A) The following references are substituted:
16(i) Subdivision (a) of Section 18640, in lieu of Section
176044(a)(1) of the Internal Revenue Code.
18(ii) Subdivision (a) of Section 18644, in lieu of Section 6050A(a)
19of the Internal Revenue Code.
20(B) References to Sections 4093(c)(4), 4093(e), 4101(d),
216041(b), 6041A(b), 6045(d), 6051(d), and 6053(c)(1) of the Internal
22Revenue Codebegin delete shallend deletebegin insert
doend insert not apply.
23(C) The term “information return” shall also include both of the
24following:
25(i) The return required by paragraph (1) of subdivisionbegin delete (i)end deletebegin insert (g)end insert
26 of Section 18662.
27(ii) The return required by subdivision (a) of Section 18631.7.
28(3) Section 6724(d)(2) of the Internal Revenue Code is modified
29as follows:
30(A) The following references are substituted:
31(i) Subdivision (b) of Section 18640, in
lieu of Section 6044(e)
32of the Internal Revenue Code.
33(ii) Subdivision (b) of Section 18644, in lieu of Section
346050A(b) of the Internal Revenue Code.
35(B) References to Sections 4093(c)(4)(B), 6031(b), 6037(b),
366041A(e), 6045(d), 6051(d), 6053(b), and 6053(c) of the Internal
37Revenue Codebegin delete shallend deletebegin insert doend insert not apply.
38(C) The term “payee statement” shall also include the statement
39required by paragraph (2) of subdivisionbegin delete (i)end deletebegin insert (g)end insert of Section 18662.
P722 1(e) In the case of each failure to provide a written explanation
2as required by Section 402(f) of the Internal Revenue Code, at the
3time prescribed therefor, unless it is shown that the failure is due
4to reasonable cause and not to willful neglect, there shall be paid,
5on notice and demand of the Franchise Tax Board and in the same
6manner as tax, by the person failing to provide that written
7explanation, an amount equal to ten dollars ($10) for each failure,
8but the total amount imposed on that person for all those failures
9duringbegin delete anyend deletebegin insert aend insert calendar year shall not exceed five thousand dollars
10($5,000).
11(f) begin deleteAny end deletebegin insertA
end insertpenalty imposed by this part shall be paid on notice
12and demand by the Franchise Tax Board and in the same manner
13as tax.
Section 19191 of the Revenue and Taxation Code
15 is amended to read:
(a) The Franchise Tax Board may enter into a voluntary
17disclosure agreement with any qualified entity, qualified
18shareholder, qualified member, or qualified beneficiary as defined
19in Section 19192, that is binding on both the Franchise Tax Board
20and the qualified entity, qualified shareholder, qualified member,
21or qualified beneficiary.
22(b) The Franchise Tax Board shall do all of the following:
23(1) Provide guidelines and establish procedures for qualified
24entities and their qualified shareholders, qualified members, or
25qualified beneficiaries to apply for voluntary disclosure agreements.
26(2) Accept applications on an anonymous basis from
qualified
27entities and their qualified shareholders, qualified members, or
28qualified beneficiaries for voluntary disclosure agreements.
29(3) Implement procedures for accepting applications for
30voluntary disclosure agreements through the National Nexus
31Program administered by the Multistate Tax Commission.
32(4) For purposes of considering offers from qualified entities
33and their qualified shareholders, qualified members, or qualified
34beneficiaries to enter into voluntary disclosure agreements, take
35into account the following criteria:
36(A) The nature and magnitude of the qualified entity’s previous
37presence and activity in this state and the facts and circumstances
38by which the nexus of the qualified entity or qualified shareholder,
39qualified member, or qualified beneficiary was established.
P723 1(B) The extent to which the weight of the factual circumstances
2demonstrates that a prudent business person exercising reasonable
3care would conclude that the previous activities and presence in
4this state were or were not immune from taxation by this state by
5reason of Public Law 86-272 or otherwise.
6(C) Reasonable reliance on the advice of a person in a fiduciary
7position or other competent advice that the qualified entity or
8qualified shareholder, qualified member, or qualified beneficiary
9activities were immune from taxation by this state.
10(D) Lack of evidence of willful disregard or neglect of the tax
11laws of this state on the part of the qualified entity or qualified
12shareholder, qualified member, or qualified beneficiary.
13(E) Demonstrations of good
faith on the part of the qualified
14entitybegin insert, qualified shareholder, qualified member, or qualified
15beneficiaryend insert.
16(F) Benefits that will accrue to the state by entering into a
17voluntary disclosure agreement.
18(5) Act on any application of a voluntary disclosure agreement
19within 120 days of receipt.
20(6) Enter into voluntary disclosure agreements with qualified
21entities, qualified shareholders, qualified members, or qualified
22beneficiaries, as authorized in subdivision (a) and based on the
23criteria set forth in paragraph (4).
24(c) Before any voluntary disclosure agreement becomes binding,
25the Franchise Tax Board, itself, shall approve the agreement in the
26
following manner:
27(1) The Executive Officer and Chief Counsel of the Franchise
28Tax Board shall recommend and submit the voluntary disclosure
29agreement to the Franchise Tax Board for approval.
30(2) Each voluntary disclosure agreement recommendation shall
31be submitted in a manner as to maintain the anonymity of the
32taxpayer applying for the voluntary disclosure agreement.
33(3) begin deleteAny end deletebegin insertA end insertrecommendation for approval of a voluntary
34disclosure agreement shall be approved or disapproved by the
35Franchise Tax Board, itself, within 45 days of the submission of
36that recommendation to the board.
37(4) begin deleteAny end deletebegin insertA end insertrecommendation of a voluntary disclosure agreement
38that is not either approved or disapproved by the board within 45
39days of the submission of that recommendation shall be deemed
40approved.
P724 1(5) Disapproval of a recommendation of a voluntary disclosure
2agreement shall be made only by a majority vote of the Franchise
3Tax Board.
4(6) The members of the Franchise Tax Board shall not
5participate in any voluntary disclosure agreement except as
6provided in this subdivision.
7(d) The voluntary disclosure agreement entered into by the
8Franchise Tax Board and the qualified entity, qualified shareholder,
9qualified
member, or qualified beneficiary as provided for in
10subdivision (a) shall to the extent applicable specify that:
11(1) The Franchise Tax Board shall with respect to a qualified
12entity, qualified shareholder, qualified member, or qualified
13beneficiary, except as provided in paragraph (4), (6), or (9) of
14subdivision (a) of Section 19192:
15(A) Waive its authority under this part, Part 10 (commencing
16with Section 17001), or Part 11 (commencing with Section 23001)
17to assess or propose to assess taxes, additions to tax, fees, or
18penalties with respect to each taxable year ending prior to six years
19from the signing date of the voluntary disclosure agreement.
20(B) With respect to each of the six taxable years ending
21immediately preceding the signing date of the voluntary disclosure
22agreement, based on its discretion, agree to
waive any or all of the
23following:
24(i) begin deleteAny end deletebegin insertA end insertpenalty related to a failure to make and file a return,
25as provided in Section 19131.
26(ii) begin deleteAny end deletebegin insertA end insertpenalty related to a failure to pay any amount due by
27the date prescribed for payment, as provided in Section 19132.
28(iii) begin deleteAny end deletebegin insertAn end insertaddition
to tax related to an underpayment of
29estimated tax, as provided in Section 19136.
30(iv) begin deleteAny end deletebegin insertA end insertpenalty related to Section 6810 or subdivision (a)
31of Section 8810 of the Corporations Code, as provided in Section
3219141 of this code.
33(v) begin deleteAny end deletebegin insertA end insertpenalty related to a failure to furnish information or
34maintain records, as provided in Section 19141.5.
35(vi) begin deleteAny end deletebegin insertAn
end insertaddition to tax related to an underpayment of tax
36imposed under Part 11 (commencing with Section 23001), as
37provided in Section 19142.
38(vii) begin deleteAny end deletebegin insertA end insertpenalty related to a partnership required to file a
39return under Section 18633, as provided in Section 19172.
P725 1(viii) begin deleteAny end deletebegin insertA end insertpenalty related to a failure to file information
2returns, as provided in Section 19183.
3(ix) begin deleteAny end deletebegin insertA
end insertpenalty related to relief from contract voidability,
4as provided in Section 23305.1.
5(2) The qualified entity, qualified shareholder, qualified member,
6or qualified beneficiary shall:
7(A) With respect to each of the six taxable years ending
8immediately preceding the signing date of the written agreement:
9(i) Voluntarily and fully disclose on the qualified entity’s
10application all material facts pertinent to the qualified entity’s,
11shareholder’s, member’s, or beneficiary’s liability for any taxes
12imposed under Part 10 (commencing with Section 17001) or Part
1311 (commencing with Section 23001).
14(ii) Except as provided in paragraph (3), within 30 days from
15the signing date of the voluntary disclosure agreement:
16(I) File all returns required under this part, Part 10 (commencing
17with Section 17001), or Part 11 (commencing with Section 23001).
18(II) Pay in full any tax, interest, fee, and penalties, other than
19those penalties specifically waived by the Franchise Tax Board
20under the terms of the voluntary disclosure agreement, imposed
21under this part, Part 10 (commencing with Section 17001), or Part
2211 (commencing with Section 23001) in a manner as may be
23prescribed by the Franchise Tax Board. Paragraph (1) of
24subdivision (f) of Section 23153 shall not apply to qualified entities
25admitted into the voluntary disclosure program.
26(B) Agree to comply with all franchise and income tax laws of
27this state in subsequent taxable years by filing all returns required
28and paying all amounts due under this part, Part 10 (commencing
29with Section
17001), or Part 11 (commencing with Section 23001).
30(3) The Franchise Tax Board may extend the time for filing
31returns and paying amounts due to 120 days from the signing date
32of the voluntary disclosure agreement or to the latest extended due
33date of the return for a taxable year for which relief is granted,
34whichever is later.
35(e) begin deleteNo end deletebegin insertAn end insertaddition to tax under Section 19136 or 19142 shall
36begin insert notend insert be made for any underpayment of estimated tax attributable
37to the underpayment of an installment of estimated tax due before
38the signing date of the voluntary disclosure agreement.
P726 1(f) The amendments to this section made by Chapter 954 of the
2Statutes of 1996 shall apply to taxable years beginning on or after
3January 1, 1997.
4(g) The amendments to this section made by Chapter 543 of the
5Statutes of 2001 shall apply to voluntary disclosure agreements
6entered into on or after January 1, 2002.
7(h) The amendments to this section made by Chapter 543 of the
8Statutes of 2001 shall apply to voluntary disclosure agreements
9entered into on or after January 1, 2005.
10(i) The amendments to this section made by Chapter 296 of the
11Statutes of 2011 shall apply to voluntary disclosure agreements
12entered into on or after January 1, 2011.
Section 19255 of the Revenue and Taxation Code
14 is amended to read:
(a) Except as otherwise provided in subdivisions (b)
16and (e), after 20 years have lapsed from the date the latest tax
17liability for a taxable year or the date any other liability that is not
18associated with a taxable year becomes “due and payable” within
19the meaning of Section 19221, the Franchise Tax Board may not
20collect that amount and the taxpayer’s liability to the state for that
21liability is abated by reason of lapse of time. Any actions taken by
22the Franchise Tax Board to collect an uncollectible liability shall
23be released, withdrawn, or otherwise terminated by the Franchise
24Tax Board, and no subsequent administrative or civil action shall
25be taken or brought to collect all or part of that uncollectible
26amount. Any amounts received in contravention of this section
27shall be
considered an overpaymentbegin delete pursuant to Section 19306end delete
28
that may be credited and refunded in accordance withbegin insert Article 1
29(commencing withend insert Sectionbegin delete 19301end deletebegin insert 19301) of Chapter 6end insert.
30(b) If a timely civil action filed pursuant to Article 2 of Chapter
316 of this part is commenced, or a claim is filed in a probate action,
32the period for which the liability is collectable shall be extended
33and shall not expire until that liability, probate claim, or judgment
34against the taxpayer arising from that liability is satisfied or
35becomes unenforceable under the laws applicable to the
36enforcement of civil judgments.
37(c) For purposes of this section, both of the following apply:
38(1) “Tax liability” means a liability imposed under Part 10
39(commencing with Section 17001), Part 11 (commencing with
40Section 23001), or this part, and includes any additions to tax,
P727 1interest, penalties, fees and any other amounts relating to the
2imposed liability.
3(2) If more than one liability is “due and payable” for a particular
4taxable year, with the exception of a liability resulting from a
5penalty imposed under Section 19777.5, the “due and payable”
6date that is later in time shall be the date upon which the 20-year
7limitation of subdivision (a) commences.
8(d) This section shall not apply to amounts subject to collection
9by the Franchise Tax Board pursuant to Article 5, 5.5, or 6 of this
10chapter, or any other amount that is not a tax imposed under Part
1110 or Part 11, but which the
Franchise Tax Board is collecting as
12though it were a final personal income tax delinquency.
13(e) (1) The expiration of the period of limitation on collection
14under this section shall be suspended for the following periods:
15(A) The period that the Franchise Tax Board is prohibited from
16involuntary collection under subparagraph (B) of paragraph (1) of
17subdivision (b) of Section 19271 relating to collection of child
18support delinquencies, plus 60 days thereafter.
19(B) The period during which the Franchise Tax Board is
20prohibited by reason of a bankruptcy case from collecting, plus
21six months thereafter.
22(C) The period described under subdivision (d) of Section 19008
23relating to installment payment agreements.
24(D) The period during which collection is postponed by
25operation of law under Section 18571, related to postponement by
26reason of service in a combat zone, or under Section 18572, related
27to postponement by reason of presidentially declared disaster or
28terroristic or military action.
29(E) During any other period during which collection of a tax is
30suspended, postponed, or extended by operation of law.
31(2) A suspension of the period of limitation under this
32subdivision shall apply with respect to both parties of any liability
33that is joint and several.
34(f) This section shall be applied on and after July 1, 2006, to
35any liability “due and payable” before, on, or after that date.
Chapter 9.5 (commencing with Section 19778) of
37Part 10.2 of Division 2 of the Revenue and Taxation Code, as
38added by Section 13 of Chapter 654 of the Statutes of 2003, is
39repealed.
Section 23151 of the Revenue and Taxation Code
2 is amended to read:
(a) With the exception of banks and financial
4corporations, every corporation doing business within the limits
5of this state and not expressly exempted from taxation by the
6provisions of the Constitution of this state or by this part, shall
7annually pay to the state, for the privilege of exercising its
8corporate franchises within this state, a tax according to or
9measured by its net income, to be computed at the rate of 7.6
10percent upon the basis of its net income for the next preceding
11income year, or if greater, the minimum tax specified in Section
1223153.
13(b) For calendar or fiscal years ending after June 30, 1973, the
14rate of tax shall be 9 percent instead of 7.6 percent as provided by
15subdivision (a).
16(c) For calendar or fiscal years ending in 1980 to 1986, inclusive,
17the rate of tax shall be 9.6 percent.
18(d) For calendar or fiscal years ending in 1987 to 1996,
19inclusive, and for any income year beginning before January 1,
201997, the tax rate shall be 9.3 percent.
21(e) For any income year beginning on or after January 1, 1997,
22begin insert and before the income year identified in subparagraph (A) of
23paragraph (1) of subdivision (f),end insert the tax rate shall be 8.84 percent.
24The change in rate provided in this subdivision shall be made
25without proration otherwise required by Section 24251.
26(f) (1) For the first taxable year beginning on or after
January
271, 2000, the tax imposed under this section shall be the sum of
28both of the following:
29(A) A tax according to or measured by net income, to be
30computed at the rate of 8.84 percent upon the basis of the net
31income for the next preceding income year, but not less than the
32minimum tax specified in Section 23153.
33(B) A tax according to or measured by net income, to be
34computed at the rate of 8.84 percent upon the basis of the net
35income for the first taxable year beginning on or after January 1,
362000, but not less than the minimum tax specified in Section 23153.
37(2) Except as provided in paragraph (1), for taxable years
38beginning on or after January 1, 2000, the tax imposed under this
39section shall be a tax according to or measured by net income, to
40be computed at the rate of 8.84 percent upon the basis of the
net
P729 1income for that taxable year, but not less than the minimum tax
2specified in Section 23153.
The heading of Article 3 (commencing with Section
423571) of Chapter 3 of Part 11 of Division 2 of the Revenue and
5Taxation Code is repealed.
6
Section 23610.5 of the Revenue and Taxation Code
10 is amended to read:
(a) (1) There shall be allowed as a credit against the
12“tax” (as defined by Section 23036) a state low-income housing
13tax credit in an amount equal to the amount determined in
14subdivision (c), computed in accordance with Section 42 of the
15Internal Revenue Code of 1986, except as otherwise provided in
16this section.
17(2) “Taxpayer,” for purposes of this section, means the sole
18owner in the case of a “C” corporation, the partners in the case of
19a partnership, and the shareholders in the case of an “S”
20corporation.
21(3) “Housing sponsor,” for purposes of this section, means the
22sole owner in the case of a “C” corporation, the partnership in the
23case of a partnership, and the “S”
corporation in the case of an “S”
24corporation.
25(b) (1) The amount of the credit allocated to any housing
26sponsor shall be authorized by the California Tax Credit Allocation
27Committee, or any successor thereof, based on a project’s need
28for the credit for economic feasibility in accordance with the
29requirements of this section.
30(A) The low-income housing project shall be located in
31California and shall meet either of the following requirements:
32(i) Except for projects to provide farmworker housing, as defined
33in subdivision (h) of Section 50199.7 of the Health and Safety
34Code, that are allocated credits solely under the set-aside described
35in subdivision (c) of Section 50199.20 of the Health and Safety
36Code, the project’s housing sponsor has been allocated by the
37California Tax Credit Allocation
Committee a credit for federal
38income tax purposes under Section 42 of the Internal Revenue
39Code.
P730 1(ii) It qualifies for a credit under Section 42(h)(4)(B) of the
2Internal Revenue Code.
3(B) The California Tax Credit Allocation Committee shall not
4require fees for the credit under this section in addition to those
5fees required for applications for the tax credit pursuant to Section
642 of the Internal Revenue Code. The committee may require a
7fee if the application for the credit under this section is submitted
8in a calendar year after the year the application is submitted for
9the federal tax credit.
10(C) (i) For a project that receives a preliminary reservation of
11the state low-income housing tax credit, allowed pursuant to
12subdivision (a), on or after January 1, 2009, and before January 1,
132016,
the credit shall be allocated to the partners of a partnership
14owning the project in accordance with the partnership agreement,
15regardless of how the federal low-income housing tax credit with
16respect to the project is allocated to the partners, or whether the
17allocation of the credit under the terms of the agreement has
18substantial economic effect, within the meaning of Section 704(b)
19of the Internal Revenue Code.
20(ii) To the extent the allocation of the credit to a partner under
21this section lacks substantial economic effect, any loss or deduction
22otherwise allowable under this part that is attributable to the sale
23or other disposition of that partner’s partnership interest made prior
24to the expiration of the federal credit shall not be allowed in the
25taxable year in which the sale or other disposition occurs, but shall
26instead be deferred until and treated as if it occurred in the first
27taxable year immediately following the taxable year in
which the
28federal credit period expires for the project described in clause (i).
29(iii) This subparagraphbegin delete shallend deletebegin insert doesend insert not apply to a project that
30receives a preliminary reservation of state low-income housing
31tax credits under the set-aside described in subdivision (c) of
32Section 50199.20 of the Health and Safety Code unless the project
33also receives a preliminary reservation of federal low-income
34housing tax credits.
35(iv) This subparagraph shall cease to be operative with respect
36to any project that receives a preliminary reservation of a credit
37on or after January 1, 2016.
38(2) (A) The California Tax Credit
Allocation Committee shall
39certify to the housing sponsor the amount of tax credit under this
40section allocated to the housing sponsor for each credit period.
P731 1(B) In the case of a partnership or an “S” corporation, the
2housing sponsor shall provide a copy of the California Tax Credit
3Allocation Committee certification to the taxpayer.
4(C) The taxpayer shall, upon request, provide a copy of the
5certification to the Franchise Tax Board.
6(D) All elections made by the taxpayer pursuant to Section 42
7of the Internal Revenue Codebegin delete shallend delete apply to this section.
8(E) (i) Except as described in clause (ii), for buildings located
9in designated difficult
development areas (DDAs) or qualified
10census tracts (QCTs), as defined in Section 42(d)(5)(B) of the
11Internal Revenue Code, credits may be allocated under this section
12in the amounts prescribed in subdivision (c), provided that the
13amount of credit allocated under Section 42 of the Internal Revenue
14Code is computed on 100 percent of the qualified basis of the
15building.
16(ii) Notwithstanding clause (i), the California Tax Credit
17Allocation Committee may allocate the credit for buildings located
18in DDAs or QCTs that are restricted to having 50 percent of its
19occupants be special needs households, as defined in the California
20Code of Regulations by the California Tax Credit Allocation
21Committee, even if the taxpayer receives federal credits pursuant
22to Section 42(d)(5)(B) of the Internal Revenue Code, provided
23that the credit allowed under this section shall not exceed 30
24percent of the eligible basis of the building.
25(G)
end delete
26begin insert(F)end insert (i) The California Tax Credit Allocation Committee may
27allocate a credit under this section in exchange for a credit allocated
28pursuant to Section 42(d)(5)(B) of the Internal Revenue Code in
29amounts up to 30 percent of the eligible basis of a building if the
30credits allowed under Section 42 of the Internal Revenue Code are
31reduced by an equivalent amount.
32(ii) An equivalent amount shall be determined by the California
33Tax Credit Allocation Committee based upon the relative amount
34required to produce an equivalent state tax credit to the taxpayer.
35(c) Section 42(b) of the Internal Revenue Code shall be modified
36as follows:
37(1) In the case of any qualified low-income building placed in
38service by the housing sponsor during 1987, the term “applicable
39percentage” means 9 percent for each of the first three years and
P732 13 percent for the fourth year for new buildings (whether or not the
2building is federally subsidized) and for existing buildings.
3(2) In the case of any qualified low-income building that receives
4an allocation after 1989 and is a new building not federally
5subsidized, the term “applicable percentage” means the following:
6(A) For each of the first three years, the percentage prescribed
7by the Secretary of the Treasury for new buildings that are not
8federally subsidized for the taxable year, determined in accordance
9with the requirements of Section 42(b)(2) of the Internal Revenue
10Code, in lieu of the percentage prescribed in Section 42(b)(1)(A)
11of the Internal Revenue Code.
12(B) For the fourth year, the difference between 30 percent and
13the sum of the applicable percentages for the first three years.
14(3) In the case of any qualified low-income building that receives
15an allocation after 1989 and that is a new building that is federally
16subsidized or that is an existing building that is “at risk of
17conversion,” the term “applicable percentage” means the following:
18(A) For each of the first three years, the percentage prescribed
19by the Secretary of the Treasury for new buildings that are federally
20subsidized for the taxable year.
21(B) For the fourth year, the difference between 13 percent and
22the sum of the applicable percentages for the first three years.
23(4) For
purposes of this section, the term “at risk of conversion,”
24with respect to an existing property means a property that satisfies
25all of the following criteria:
26(A) The property is a multifamily rental housing development
27in which at least 50 percent of the units receive governmental
28assistance pursuant to any of the following:
29(i) New construction, substantial rehabilitation, moderate
30rehabilitation, property disposition, and loan management set-aside
31programs, or any other program providing project-based assistance
32pursuant to Section 8 of the United States Housing Act of 1937,
33Section 1437f of Title 42 of the United States Code, as amended.
34(ii) The Below-Market-Interest-Rate Program pursuant to
35Section 221(d)(3) of the National Housing Act, Sections
361715l(d)(3) and (5) of Title 12 of the United States
Code.
37(iii) Section 236 of the National Housing Act, Section 1715z-1
38of Title 12 of the United States Code.
P733 1(iv) Programs for rent supplement assistance pursuant to Section
2101 of the Housing and Urban Development Act of 1965, Section
31701s of Title 12 of the United States Code, as amended.
4(v) Programs pursuant to Section 515 of the Housing Act of
51949, Section 1485 of Title 42 of the United States Code, as
6amended.
7(vi) The low-income housing credit program set forth in Section
842 of the Internal Revenue Code.
9(B) The restrictions on rent and income levels will terminate or
10the federally insured mortgage on the property is eligible for
11prepayment any time within five years before or
after the date of
12application to the California Tax Credit Allocation Committee.
13(C) The entity acquiring the property enters into a regulatory
14agreement that requires the property to be operated in accordance
15with the requirements of this section for a period equal to the
16greater of 55 years or the life of the property.
17(D) The property satisfies the requirements of Section 42(e) of
18the Internal Revenue Code regarding rehabilitation expenditures,
19except that the provisions of Section 42(e)(3)(A)(ii)(I) shall not
20apply.
21(d) The term “qualified low-income housing project” as defined
22in Section 42(c)(2) of the Internal Revenue Code is modified by
23adding the following requirements:
24(1) The taxpayer shall be entitled to receive a cash distribution
25from the
operations of the project, after funding required reserves,
26that at the election of the taxpayer, is equal to:
27(A) An amount not to exceed 8 percent of the lesser of:
28(i) The owner equity, that shall include the amount of the capital
29contributions actually paid to the housing sponsor and shall not
30include any amounts until they are paid on an investor note.
31(ii) Twenty percent of the adjusted basis of the building as of
32the close of the first taxable year of the credit period.
33(B) The amount of the cashflow from those units in the building
34that are not low-income units. For purposes of computing cashflow
35under this subparagraph, operating costs shall be allocated to the
36low-income units using the “floor space fraction,” as defined in
37Section 42 of the
Internal Revenue Code.
38(C) Any amount allowed to be distributed under subparagraph
39(A) that is not available for distribution during the first five years
40of the compliance period may be accumulated and distributed any
P734 1time during the first 15 years of the compliance period but not
2thereafter.
3(2) The limitation on returnbegin delete shall applyend deletebegin insert appliesend insert in the aggregate
4to the partners if the housing sponsor is a partnership and in the
5aggregate to the shareholders if the housing sponsor is an “S”
6corporation.
7(3) The housing sponsor shall apply any cash available for
8distribution in excess of the amount eligible to be distributed under
9
paragraph (1) to reduce the rent on rent-restricted units or to
10increase the number of rent-restricted units subject to the tests of
11Section 42(g)(1) of the Internal Revenue Code.
12(e) The provisions of Section 42(f) of the Internal Revenue Code
13shall be modified as follows:
14(1) The term “credit period” as defined in Section 42(f)(1) of
15the Internal Revenue Code is modified by substituting “four taxable
16years” for “10 taxable years.”
17(2) The special rule for the first taxable year of the credit period
18under Section 42(f)(2) of the Internal Revenue Code shall not apply
19to the tax credit under this section.
20(3) Section 42(f)(3) of the Internal Revenue Code is modified
21to read:
22If, as of the close of any taxable
year in the compliance period,
23after the first year of the credit period, the qualified basis of any
24building exceeds the qualified basis of that building as of the close
25of the first year of the credit period, the housing sponsor, to the
26extent of its tax credit allocation, shall be eligible for a credit on
27the excess in an amount equal to the applicable percentage
28determined pursuant to subdivision (c) for the four-year period
29beginning with the later of the taxable years in which the increase
30in qualified basis occurs.
31(f) The provisions of Section 42(h) of the Internal Revenue
32Code shall be modified as follows:
33(1) Section 42(h)(2) of the Internal Revenue Codebegin delete shallend deletebegin insert doesend insert
34 notbegin delete be applicableend deletebegin insert
applyend insert and instead the following provisionsbegin delete shall begin insert apply:end insert
35be applicable:end delete
36The total amount for the four-year credit period of the housing
37credit dollars allocated in a calendar year to any building shall
38reduce the aggregate housing credit dollar amount of the California
39Tax Credit Allocation Committee for the calendar year in which
40the allocation is made.
P735 1(2) Paragraphs (3), (4), (5), (6)(E)(i)(II), (6)(F), (6)(G), (6)(I),
2(7), and (8) of Section 42(h) of the Internal Revenue Codebegin delete shallend delete
3begin insert doend insert
notbegin delete be
applicableend delete
4(g) The aggregate housing credit dollar amount that may be
5allocated annually by the California Tax Credit Allocation
6Committee pursuant to this section, Section 12206, and Section
717058 shall be an amount equal to the sum of all the following:
8(1) Seventy million dollars ($70,000,000) for the 2001 calendar
9year, and, for the 2002 calendar year and each calendar year
10thereafter, seventy million dollars ($70,000,000) increased by the
11percentage, if any, by which the Consumer Price Index for the
12preceding calendar year exceeds the Consumer Price Index for the
132001 calendar year. For the purposes of this paragraph, the term
14“Consumer Price Index” means the last Consumer Price Index for
15All Urban Consumers published by the federal Department of
16
Labor.
17(2) The unused housing credit ceiling, if any, for the preceding
18calendar years.
19(3) The amount of housing credit ceiling returned in the calendar
20year. For purposes of this paragraph, the amount of housing credit
21dollar amount returned in the calendar year equals the housing
22credit dollar amount previously allocated to any project that does
23not become a qualified low-income housing project within the
24period required by this section or to any project with respect to
25which an allocation is canceled by mutual consent of the California
26Tax Credit Allocation Committee and the allocation recipient.
27(4) Five hundred thousand dollars ($500,000) per calendar year
28for projects to provide farmworker housing, as defined in
29subdivision (h) of Section 50199.7 of the Health and Safety Code.
30(5) The amount of any unallocated or returned credits under
31former Sections 17053.14, 23608.2, and 23608.3, as those sections
32read prior to January 1, 2009, until fully exhausted for projects to
33provide farmworker housing, as defined in subdivision (h) of
34Section 50199.7 of the Health and Safety Code.
35(h) The term “compliance period” as defined in Section 42(i)(1)
36of the Internal Revenue Code is modified to mean, with respect to
37any building, the period of 30 consecutive taxable years beginning
38with the first taxable year of the credit period with respect thereto.
39(i) Section 42(j) of the Internal Revenue Codebegin delete shallend deletebegin insert doesend insert notbegin delete be begin insert
applyend insert and the following shall be substituted in its place:
40applicableend delete
P736 1The requirements of this section shall be set forth in a regulatory
2agreement between the California Tax Credit Allocation Committee
3and the housing sponsor, and this agreement shall be subordinated,
4when required, to any lien or encumbrance of any banks or other
5institutional lenders to the project. The regulatory agreement
6entered into pursuant to subdivision (f) of Section 50199.14 of the
7Health and Safety Code shall apply, provided that the agreement
8includes all of the following provisions:
9(1) A term not less than the compliance period.
10(2) A requirement that the agreement be recorded in the official
11records of the county in which the qualified low-income housing
12project is located.
13(3) A provision stating which state and local agencies can
14enforce the regulatory agreement in the event the housing sponsor
15fails to satisfy any of the requirements of this section.
16(4) A provision that the regulatory agreement shall be deemed
17a contract enforceable by tenants as third-party beneficiaries
18thereto, and that allows individuals, whether prospective, present,
19or former occupants of the building, who meet the income
20limitation applicable to the building, the right to enforce the
21regulatory agreement in any state court.
22(5) A provision incorporating the requirements of Section 42
23of the Internal Revenue Code as modified by this section.
24(6) A requirement that the housing sponsor notify the California
25Tax Credit Allocation Committee or its designee if there is a
26determination by the Internal
Revenue Service that the project is
27not in compliance with Section 42(g) of the Internal Revenue Code.
28(7) A requirement that the housing sponsor, as security for the
29performance of the housing sponsor’s obligations under the
30regulatory agreement, assign the housing sponsor’s interest in rents
31that it receives from the project, provided that until there is a
32default under the regulatory agreement, the housing sponsor is
33entitled to collect and retain the rents.
34(8) A provision that the remedies available in the event of a
35default under the regulatory agreement that is not cured within a
36reasonable cure period include, but are not limited to, allowing
37any of the parties designated to enforce the regulatory agreement
38to collect all rents with respect to the project; taking possession of
39the project and operating the project in accordance with the
40regulatory agreement until the
enforcer determines the housing
P737 1sponsor is in a position to operate the project in accordance with
2the regulatory agreement; applying to any court for specific
3performance; securing the appointment of a receiver to operate
4the project; or any other relief as may be appropriate.
5(j) (1) The committee shall allocate the housing credit on a
6regular basis consisting of two or more periods in each calendar
7year during which applications may be filed and considered. The
8committee shall establish application filing deadlines, the maximum
9percentage of federal and state low-income housing tax credit
10ceiling that may be allocated by the committee in that period, and
11the approximate date on which allocations shall be made. If the
12enactment of federal or state law, the adoption of rules or
13regulations, or other similar events prevent the use of two allocation
14periods, the committee may reduce the number of periods and
15adjust the
filing deadlines, maximum percentage of credit allocated,
16and allocation dates.
17(2) The committee shall adopt a qualified allocation plan, as
18provided in Section 42(m)(1) of the Internal Revenue Code. In
19adopting this plan, the committee shall comply with the provisions
20of Sections 42(m)(1)(B) and 42(m)(1)(C) of the Internal Revenue
21Code.
22(3) Notwithstanding Section 42(m) of the Internal Revenue
23Code, the California Tax Credit Allocation Committee shall
24allocate housing credits in accordance with the qualified allocation
25plan and regulations, which shall include the following provisions:
26(A) All housing sponsors, as defined by paragraph (3) of
27subdivision (a), shall demonstrate at the time the application is
28filed with the committee that the project meets the following
29threshold requirements:
30(i) The housing sponsor shall demonstrate that there is a need
31for low-income housing in the community or region for which it
32is proposed.
33(ii) The project’s proposed financing, including tax credit
34proceeds, shall be sufficient to complete the project and shall be
35adequate to operate the project for the extended use period.
36(iii) The project shall have enforceable financing commitments,
37either construction or permanent financing, for at least 50 percent
38of the total estimated financing of the project.
39(iv) The housing sponsor shall have and maintain control of the
40site for the project.
P738 1(v) The housing sponsor shall demonstrate that the project
2complies with all applicable local land use and
zoning ordinances.
3(vi) The housing sponsor shall demonstrate that the project
4development team has the experience and the financial capacity
5to ensure project completion and operation for the extended use
6period.
7(vii) The housing sponsor shall demonstrate the amount of tax
8credit that is necessary for the financial feasibility of the project
9and its viability as a qualified low-income housing project
10throughout the extended use period, taking into account operating
11expenses, a supportable debt service, reserves, funds set aside for
12rental subsidies and required equity, and a development fee that
13does not exceed a specified percentage of the eligible basis of the
14project prior to inclusion of the development fee in the eligible
15basis, as determined by the committee.
16(B) The committee shall give a preference to those
projects
17satisfying all of the threshold requirements of subparagraph (A)
18if both of the following apply:
19(i) The project serves the lowest income tenants at rents
20affordable to those tenants.
21(ii) The project is obligated to serve qualified tenants for the
22longest period.
23(C) In addition to the provisions of subparagraphs (A) and (B),
24the committee shall use the following criteria in allocating housing
25credits:
26(i) Projects serving large families in which a substantial number,
27as defined by the committee, of all residential units are low-income
28units with three and more bedrooms.
29(ii) Projects providing single-room occupancy units serving
30very low income tenants.
31(iii) Existing projects that are “at risk of conversion,” as defined
32by paragraph (4) of subdivision (c).
33(iv) Projects for which a public agency provides direct or indirect
34long-term financial support for at least 15 percent of the total
35project development costs or projects for which the owner’s equity
36constitutes at least 30 percent of the total project development
37costs.
38(v) Projects that provide tenant amenities not generally available
39to residents of low-income housing projects.
P739 1(4) For purposes of allocating credits pursuant to this section,
2the committee shall not give preference to any project by virtue
3of the date of submission of its application except to break a tie
4when two or more of the projects have an equal rating.
5(5) Not less than 20 percent of the low-income housing tax
6credits available annually under this section, Section 12206, and
7Section 17058 shall be set aside for allocation to rural areas as
8defined in Section 50199.21 of the Health and Safety Code. Any
9amount of credit set aside for rural areas remaining on or after
10October 31 of any calendar year shall be available for allocation
11to any eligible project. No amount of credit set aside for rural areas
12shall be considered available for any eligible project so long as
13there are eligible rural applications pending on October 31.
14(k) Section 42(l) of the Internal Revenue Code shall be modified
15as follows:
16The term “secretary” shall be replaced by the term “California
17Franchise Tax Board.”
18(l) In the casebegin delete whereend deletebegin insert
in whichend insert the state credit allowed under this
19section exceeds the “tax,” the excess may be carried over to reduce
20the “tax” in the following year, and succeeding years if necessary,
21until the credit has been exhausted.
22(m) A project that received an allocation of a 1989 federal
23housing credit dollar amount shall be eligible to receive an
24allocation of a 1990 state housing credit dollar amount, subject to
25all of the following conditions:
26(1) The project was not placed in service prior to 1990.
27(2) To the extent the amendments made to this section by the
28Statutes of 1990 conflict with any provisions existing in this section
29prior to those amendments, the prior provisions of law shall prevail.
30(3) Notwithstanding
paragraph (2), a project applying for an
31allocation under this subdivision shall be subject to the
32requirements of paragraph (3) of subdivision (j).
33(n) The credit period with respect to an allocation of credit in
341989 by the California Tax Credit Allocation Committee of which
35any amount is attributable to unallocated credit from 1987 or 1988
36shall not begin until after December 31, 1989.
37(o) The provisions of Section 11407(a) of Public Law 101-508,
38relating to the effective date of the extension of the low-income
39housing credit,begin delete shallend delete apply to calendar years after 1989.
P740 1(p) The provisions of Section 11407(c) of Public Law 101-508,
2relating to election to accelerate credit,begin delete shallend deletebegin insert
doend insert not apply.
3(q) (1) A corporation may elect to assign any portion of any
4credit allowed under this section to one or more affiliated
5corporations for each taxable year in which the credit is allowed.
6For purposes of this subdivision, “affiliated corporation” has the
7meaning provided in subdivision (b) of Section 25110, as that
8section was amended by Chapter 881 of the Statutes of 1993, as
9of the last day of the taxable year in which the credit is allowed,
10except that “100 percent” is substituted for “more than 50 percent”
11wherever it appears in the section, as that section was amended by
12Chapter 881 of the Statutes of 1993, and “voting common stock”
13is substituted for “voting stock” wherever it appears in the section,
14as that section was amended by Chapter 881 of the Statutes of
151993.
16(2) The election provided in paragraph (1):
17(A) May be based on any method selected by the corporation
18that originally receives the credit.
19(B) Shall be irrevocable for the taxable year the credit is allowed,
20once made.
21(C) May be changed for any subsequent taxable year if the
22election to make the assignment is expressly shown on each of the
23returns of the affiliated corporations that assign and receive the
24credits.
25(r) Any unused credit may continue to be carried forward, as
26provided in subdivision (l), until the credit has been exhausted.
27This section shall remain in effect on and after December 1,
281990, for as long as Section 42 of the Internal Revenue Code,
29relating to low-income housing credits, remains in effect.
30(s) The amendments to this section made by the act adding this
31subdivision shall apply only to taxable years beginning on or after
32January 1, 1994, except that paragraph (1) of subdivision (q), as
33amended, shall apply to taxable years beginning on or after January
341, 1993.
Section 23622.7 of the Revenue and Taxation Code
36 is amended to read:
(a) There shall be allowed a credit against the “tax”
38(as defined by Section 23036) to a taxpayer who employs a
39qualified employee in an enterprise zone during the taxable year.
40The credit shall be equal to the sum of each of the following:
P741 1(1) Fifty percent of qualified wages in the first year of
2employment.
3(2) Forty percent of qualified wages in the second year of
4employment.
5(3) Thirty percent of qualified wages in the third year of
6employment.
7(4) Twenty percent of qualified wages in the fourth year of
8employment.
9(5) Ten percent of qualified wages in the fifth year of
10employment.
11(b) For purposes of this section:
12(1) “Qualified wages” means:
13(A) (i) Except as provided in clause (ii), that portion of wages
14paid or incurred by the taxpayer during the taxable year to qualified
15employees that does not exceed 150 percent of the minimum wage.
16(ii) For up to 1,350 qualified employees who are employed by
17the taxpayer in the Long Beach Enterprise Zone in aircraft
18manufacturing activities described in Codes 3721 to 3728,
19inclusive, and Code 3812 of the Standard Industrial Classification
20(SIC) Manual published by the United States Office of
21Management and Budget, 1987 edition, “qualified wages” means
22that portion of hourly wages that does
not exceed 202 percent of
23the minimum wage.
24(B) Wages received during the 60-month period beginning with
25the first day the employee commences employment with the
26taxpayer. Reemployment in connection with any increase, including
27a regularly occurring seasonal increase, in the trade or business
28operations of the taxpayer does not constitute commencement of
29employment for purposes of this section.
30(C) Qualified wages do not include any wages paid or incurred
31by the taxpayer on or after the zone expiration date. However,
32wages paid or incurred with respect to qualified employees who
33are employed by the taxpayer within the enterprise zone within
34the 60-month period prior to the zone expiration date shall continue
35to qualify for the credit under this section after the zone expiration
36date, in accordance with all provisions of this section applied as
37if the enterprise zone designation
were still in existence and
38binding.
39(2) “Minimum wage” means the wage established by the
40Industrial Welfare Commission as provided for in Chapter 1
P742 1(commencing with Section 1171) of Part 4 of Division 2 of the
2Labor Code.
3(3) “Zone expiration date” means the date the enterprise zone
4designation expires, is no longer binding, becomes inoperative, or
5is repealed.
6(4) (A) “Qualified employee” means an individual who meets
7all of the following requirements:
8(i) At least 90 percent of whose services for the taxpayer during
9the taxable year are directly related to the conduct of the taxpayer’s
10trade or business located in an enterprise zone.
11(ii) Performs at least 50
percent of his or her services for the
12taxpayer during the taxable year in an enterprise zone.
13(iii) Is hired by the taxpayer after the date of original designation
14of the area in which services were performed as an enterprise zone.
15(iv) Is any of the following:
16(I) Immediately preceding the qualified employee’s
17commencement of employment with the taxpayer, was a person
18eligible for services under the federal Job Training Partnership
19Act (29 U.S.C. Sec. 1501 et seq.), or its successor, who is receiving,
20or is eligible to receive, subsidized employment, training, or
21services funded by the federal Job Training Partnership Act, or its
22successor.
23(II) Immediately preceding the qualified employee’s
24commencement of employment with the taxpayer, was a person
25
eligible to be a voluntary or mandatory registrant under the Greater
26Avenues for Independence Act of 1985 (GAIN) provided for
27pursuant to Article 3.2 (commencing with Section 11320) of
28Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions
29Code, or its successor.
30(III) Immediately preceding the qualified employee’s
31commencement of employment with the taxpayer, was an
32economically disadvantaged individual 14 years of age or older.
33(IV) Immediately preceding the qualified employee’s
34commencement of employment with the taxpayer, was a dislocated
35worker who meets any of the following:
36(aa)
end delete
37begin insert(ia)end insert Has been terminated or laid off or who has received a notice
38of termination or layoff from employment, is eligible for or has
39exhausted entitlement to unemployment insurance benefits, and
40is unlikely to return to his or her previous industry or occupation.
P743 1(bb)
end delete
2begin insert(ib)end insert Has been terminated or has received a notice of termination
3of employment as a result of any permanent closure or any
4substantial layoff at a plant, facility, or enterprise, including an
5individual who has not received written notification but whose
6employer has made a public announcement of the closure or layoff.
7(cc)
end delete
8begin insert(ic)end insert Is long-term unemployed and has limited opportunities for
9employment or reemployment in the same or a similar occupation
10in the area in which the individual resides, including an individual
1155 years of age or older who may have substantial barriers to
12employment by reason of age.
13(dd)
end delete
14begin insert(id)end insert Was self-employed (including farmers and ranchers) and
15is unemployed as a result of general economic conditions in the
16community in which he or she resides or because of natural
17disasters.
18(ee)
end delete
19begin insert(ie)end insert Was a civilian employee of the Department of Defense
20employed at a military installation being closed or realigned under
21the Defense Base Closure and Realignment Act of 1990.
22(ff)
end delete
23begin insert(if)end insert Was an active member of the armed forces or National Guard
24as of September 30, 1990, and was either involuntarily separated
25or separated pursuant to a special benefits program.
26(gg)
end delete
27begin insert(ig)end insert Is a seasonal or migrant worker who experiences chronic
28seasonal unemployment and underemployment in the agriculture
29industry, aggravated by continual advancements in technology and
30mechanization.
31(hh)
end delete
32begin insert(ih)end insert Has been terminated or laid off, or has received a notice of
33termination or layoff, as a consequence of compliance with the
34Clean Air Act.
35(V) Immediately preceding the qualified employee’s
36commencement of employment with the taxpayer,
was a disabled
37individual who is eligible for or enrolled in, or has completed a
38state rehabilitation plan or is a service-connected disabled veteran,
39veteran of the Vietnam era, or veteran who is recently separated
40from military service.
P744 1(VI) Immediately preceding the qualified employee’s
2commencement of employment with the taxpayer, was an
3ex-offender. An individual shall be treated as convicted if he or
4she was placed on probation by a state court without a finding of
5guilt.
6(VII) Immediately preceding the qualified employee’s
7commencement of employment with the taxpayer, was a person
8eligible for or a recipient of any of the following:
9(aa)
end delete10begin insert(ia)end insert Federal Supplemental Security Income benefits.
11(bb)
end delete12begin insert(ib)end insert Aid to Families with Dependent Children.
13(cc)
end delete14begin insert(ic)end insert CalFresh benefits.
15(dd)
end delete16begin insert(id)end insert State and local general assistance.
17(VIII) Immediately preceding the qualified employee’s
18commencement of employment with the taxpayer, was a member
19of a federally recognized Indian tribe, band, or other group of
20Native American descent.
21(IX) Immediately preceding the qualified employee’s
22commencement of employment with the taxpayer, was a resident
23of a targeted employment area (as defined in Section 7072 of the
24Government Code).
25(X) An employee who qualified the taxpayer for the enterprise
26zone hiring credit under former Section 23622 or the program area
27hiring credit under former Section 23623.
28(XI) Immediately preceding the qualified employee’s
29commencement of employment with the taxpayer, was a member
30of a targeted group, as defined in Section 51(d) of the Internal
31Revenue Code, or its successor.
32(B) Priority for employment shall be provided to an individual
33who is enrolled in a qualified program under the federal Job
34Training Partnership Act or the Greater Avenues for Independence
35Act of 1985 or who is eligible as a member of a targeted group
36under the Work Opportunity Tax Credit (Section 51 of the Internal
37Revenue Code), or its successor.
38(5) “Taxpayer” means a corporation engaged in a trade or
39business within an enterprise zone designated pursuant to Chapter
P745 112.8 (commencing with Section 7070) of Division 7 of Title 1 of
2the Government Code.
3(6) “Seasonal employment” means employment by a
taxpayer
4that has regular and predictable substantial reductions in trade or
5business operations.
6(c) The taxpayer shall do both of the following:
7(1) Obtain from the Employment Development Department, as
8permitted by federal law, the local county or city Job Training
9Partnership Act administrative entity, the local county GAIN office
10or social services agency, or the local government administering
11the enterprise zone, a certification that provides that a qualified
12employee meets the eligibility requirements specified in clause
13(iv) of subparagraph (A) of paragraph (4) of subdivision (b). The
14Employment Development Department may provide preliminary
15screening and referral to a certifying agency. The Employment
16Development Department shall develop a form for this purpose.
17The Department of Housing and Community Development shall
18develop regulations governing the issuance of
certificates by local
19governments pursuant to subdivision (a) of Section 7086 of the
20Government Code.
21(2) Retain a copy of the certification and provide it upon request
22to the Franchise Tax Board.
23(d) (1) For purposes of this section:
24(A) All employees of all corporations which are members of
25the same controlled group of corporations shall be treated as
26employed by a single taxpayer.
27(B) The credit, if any, allowable by this section to each member
28shall be determined by reference to its proportionate share of the
29expense of the qualified wages giving rise to the credit, and shall
30be allocated in that manner.
31(C) For purposes of this subdivision, “controlled group of
32
corporations” means “controlled group of corporations” as defined
33in Section 1563(a) of the Internal Revenue Code, except that:
34(i) “More than 50 percent” shall be substituted for “at least 80
35percent” each place it appears in Section 1563(a)(1) of the Internal
36Revenue Code.
37(ii) The determination shall be made without regard to
38subsections (a)(4) and (e)(3)(C) of Section 1563 of the Internal
39Revenue Code.
P746 1(2) If an employer acquires the major portion of a trade or
2business of another employer (hereinafter in this paragraph referred
3to as the “predecessor”) or the major portion of a separate unit of
4a trade or business of a predecessor, then, for purposes of applying
5this section (other than subdivision (e)) for any calendar year
6ending after that acquisition, the employment relationship between
7a qualified employee
and an employer shall not be treated as
8terminated if the employee continues to be employed in that trade
9or business.
10(e) (1) (A) If the employment, other than seasonal employment,
11of any qualified employee with respect to whom qualified wages
12are taken into account under subdivision (a) is terminated by the
13taxpayer at any time during the first 270 days of that employment,
14whether or not consecutive, or before the close of the 270th
15calendar day after the day in which that employee completes 90
16days of employment with the taxpayer, the tax imposed by this
17part for the taxable year in which that employment is terminated
18shall be increased by an amount equal to the credit allowed under
19subdivision (a) for that taxable year and all prior taxable years
20attributable to qualified wages paid or incurred with respect to that
21employee.
22(B) If
the seasonal employment of any qualified employee, with
23respect to whom qualified wages are taken into account under
24subdivision (a) is not continued by the taxpayer for a period of
25270 days of employment during the 60-month period beginning
26with the day the qualified employee commences seasonal
27employment with the taxpayer, the tax imposed by this part, for
28the taxable year that includes the 60th month following the month
29in which the qualified employee commences seasonal employment
30with the taxpayer, shall be increased by an amount equal to the
31credit allowed under subdivision (a) for that taxable year and all
32prior taxable years attributable to qualified wages paid or incurred
33with respect to that qualified employee.
34(2) (A) Subparagraph (A) of paragraph (1)begin delete shallend deletebegin insert
doesend insert not apply
35to any of the following:
36(i) A termination of employment of a qualified employee who
37voluntarily leaves the employment of the taxpayer.
38(ii) A termination of employment of a qualified employee who,
39before the close of the period referred to in subparagraph (A) of
40paragraph (1), becomes disabled and unable to perform the services
P747 1of that employment, unless that disability is removed before the
2close of that period and the taxpayer fails to offer reemployment
3to that employee.
4(iii) A termination of employment of a qualified employee, if
5it is determined that the termination was due to the misconduct (as
6defined in Sections 1256-30 to 1256-43, inclusive, of Title 22 of
7the California Code of Regulations) of that employee.
8(iv) A termination of employment of a qualified employee due
9to a substantial reduction in the trade or business operations of the
10taxpayer.
11(v) A termination of employment of a qualified employee, if
12that employee is replaced by other qualified employees so as to
13create a net increase in both the number of employees and the
14hours of employment.
15(B) Subparagraph (B) of paragraph (1)begin delete shallend deletebegin insert doesend insert not apply to
16any of the following:
17(i) A failure to continue the seasonal employment of a qualified
18employee who voluntarily fails to return to the seasonal
19employment of the
taxpayer.
20(ii) A failure to continue the seasonal employment of a qualified
21employee who, before the close of the period referred to in
22subparagraph (B) of paragraph (1), becomes disabled and unable
23to perform the services of that seasonal employment, unless that
24disability is removed before the close of that period and the
25taxpayer fails to offer seasonal employment to that qualified
26employee.
27(iii) A failure to continue the seasonal employment of a qualified
28employee, if it is determined that the failure to continue the
29seasonal employment was due to the misconduct (as defined in
30Sections 1256-30 to 1256-43, inclusive, of Title 22 of the California
31Code of Regulations) of that qualified employee.
32(iv) A failure to continue seasonal employment of a qualified
33employee due to a substantial reduction in the regular
seasonal
34trade or business operations of the taxpayer.
35(v) A failure to continue the seasonal employment of a qualified
36employee, if that qualified employee is replaced by other qualified
37employees so as to create a net increase in both the number of
38seasonal employees and the hours of seasonal employment.
P748 1(C) For purposes of paragraph (1), the employment relationship
2between the taxpayer and a qualified employee shall not be treated
3as terminated by either of the following:
4(i) By a transaction to which Section 381(a) of the Internal
5Revenue Code applies, if the qualified employee continues to be
6employed by the acquiring corporation.
7(ii) By reason of a mere change in the form of conducting the
8trade or business of the taxpayer, if the qualified
employee
9continues to be employed in that trade or business and the taxpayer
10retains a substantial interest in that trade or business.
11(3) Any increase in tax under paragraph (1) shall not be treated
12as tax imposed by this part for purposes of determining the amount
13of any credit allowable under this part.
14(f) Rules similar to the rules provided in Section 46(e) and (h)
15of the Internal Revenue Code shall apply to both of the following:
16(1) An organization to which Section 593 of the Internal
17Revenue Code applies.
18(2) A regulated investment company or a real estate investment
19trust subject to taxation under this part.
20(g) For purposes of this section, “enterprise zone” means an
21area
designated as an enterprise zone pursuant to Chapter 12.8
22(commencing with Section 7070) of Division 7 of Title 1 of the
23Government Code.
24(h) The credit allowable under this section shall be reduced by
25the credit allowed under Sections 23623.5, 23625, and 23646
26claimed for the same employee. The credit shall also be reduced
27by the federal credit allowed under Section 51 of the Internal
28Revenue Code.
29In addition, any deduction otherwise allowed under this part for
30the wages or salaries paid or incurred by the taxpayer upon which
31the credit is based shall be reduced by the amount of the credit,
32prior to any reduction required by subdivision (i) or (j).
33(i) In the case where the credit otherwise allowed under this
34section exceeds the “tax” for the taxable year, that portion of the
35credit that exceeds the “tax” may be carried over and added
to the
36credit, if any, in the succeeding 10 taxable years, if necessary, until
37the credit is exhausted. The credit shall be applied first to the
38earliest taxable years possible.
39(j) (1) The amount of the credit otherwise allowed under this
40section and Section 23612.2, including any credit carryover from
P749 1prior years, that may reduce the “tax” for the taxable year shall
2not exceed the amount of tax which would be imposed on the
3taxpayer’s business income attributable to the enterprise zone
4determined as if that attributable income represented all of the
5income of the taxpayer subject to tax under this part.
6(2) Attributable income shall be that portion of the taxpayer’s
7California source business income that is apportioned to the
8enterprise zone. For that purpose, the taxpayer’s business
9attributable to sources in this state first shall be determined in
10
accordance with Chapter 17 (commencing with Section 25101).
11That business income shall be further apportioned to the enterprise
12zone in accordance with Article 2 (commencing with Section
1325120) of Chapter 17, modified for purposes of this section in
14accordance with paragraph (3).
15(3) Business income shall be apportioned to the enterprise zone
16by multiplying the total California business income of the taxpayer
17by a fraction, the numerator of which is the property factor plus
18the payroll factor, and the denominator of which is two. For
19purposes of this paragraph:
20(A) The property factor is a fraction, the numerator of which is
21the average value of the taxpayer’s real and tangible personal
22property owned or rented and used in the enterprise zone during
23the income year, and the denominator of which is the average value
24of all the taxpayer’s real and tangible personal property owned or
25
rented and used in this state during the income year.
26(B) The payroll factor is a fraction, the numerator of which is
27the total amount paid by the taxpayer in the enterprise zone during
28the income year for compensation, and the denominator of which
29is the total compensation paid by the taxpayer in this state during
30the income year.
31(4) The portion of any credit remaining, if any, after application
32of this subdivision, shall be carried over to succeeding taxable
33years, if necessary, until the credit is exhausted, as if it were an
34amount exceeding the “tax” for the taxable year, as provided in
35subdivision (i). However, the portion of any credit remaining for
36carryover to taxable years beginning on or after January 1, 2014,
37if any, after application of this subdivision, shall be carried over
38only to the succeeding 10 taxable years if necessary, until the credit
39is exhausted, as if it
were an amount exceeding the “tax” for the
40taxable year, as provided in subdivision (i).
P750 1(k) The changes made to this section by the act adding this
2subdivisionbegin delete shallend delete apply to taxable years on or after January 1, 1997.
3(l) (1) Except as provided in paragraph (2), this section shall
4cease to be operative on January 1, 2014, and shall be repealed on
5December 1, 2019. A credit shall not be allowed under this section
6with respect to an employee who first commences employment
7with a taxpayer on or after January 1, 2014.
8(2) This section shall continue to apply with respect to qualified
9employees who are employed by the taxpayer within the enterprise
10zone within the 60-month period immediately preceding January
11
1, 2014, and qualified wages paid or incurred with respect to those
12qualified employees shall continue to qualify for the credit under
13this section for taxable years beginning on or after January 1, 2014,
14in accordance with this section, as amended by the act adding this
15subdivision.
Section 23626 of the Revenue and Taxation Code
17 is amended to read:
(a) (1) For each taxable year beginning on or after
19January 1, 2014, and before January 1, 2021, there shall be allowed
20to a qualified taxpayer that hires a qualified full-time employee
21and pays or incurs qualified wages attributable to work performed
22by the qualified full-time employee in a designated census tract
23or economic development area, and that receives a tentative credit
24reservation for that qualified full-time employee, a credit against
25the “tax,” as defined by Section 23036, in an amount calculated
26under this section.
27(2) The amount of the credit allowable under this section for a
28taxable year shall be equal to the product of the tentative credit
29amount for the taxable year and the applicable percentage for the
30taxable year.
31(3) (A) If a qualified taxpayer relocates to a designated census
32tract or economic development area, the qualified taxpayer shall
33be allowed a credit with respect to qualified wages for each
34qualified full-time employee who is employed within the new
35location only if the qualified taxpayer provides each employee at
36the previous location or locations a written offer of employment
37at the new location in the designated census tract or economic
38development area with comparable compensation.
39(B) For purposes of this paragraph, “relocates to a designated
40census tract or economic development area” means an increase in
P751 1the number of qualified full-time employees, employed by a
2qualified taxpayer, within a designated census tract or tracts or
3economic development areas within a 12-month period in which
4there is a decrease in the number of full-time employees, employed
5by
the qualified taxpayer in this state, but outside of designated
6census tracts or economic development areas.
7(C) This paragraphbegin delete shallend deletebegin insert doesend insert not apply to a small business.
8(4) The credit allowed by this section may only be claimed on
9a timely filed original return of the qualified taxpayer and only
10with respect to a qualified full-time employee for whom the
11qualified taxpayer has received a tentative credit reservation.
12(b) For purposes of this section:
13(1) The “tentative credit amount” for a taxable year shall be
14equal to the product of the applicable credit
percentage for each
15qualified full-time employee and the qualified wages paid by the
16qualified taxpayer during the taxable year to that qualified full-time
17employee.
18(2) The “applicable percentage” for a taxable year shall be equal
19to a fraction, the numerator of which is the net increase in the total
20number of full-time employees employed in this state during the
21taxable year, determined on an annual full-time equivalent basis,
22as compared with the total number of full-time employees
23employed in this state during the base year, determined on the
24same basis, and the denominator of which shall be the total number
25of qualified full-time employees employed in this state during the
26taxable year. The applicable percentage shall not exceed 100
27percent.
28(3) The “applicable credit percentage” means the credit
29percentage for the calendar year during which a qualified full-time
30employee was
first employed by the qualified taxpayer. The
31applicable credit percentage for all calendar years shall be 35
32percent.
33(4) “Base year” means the 2013 taxable year, or in the case of
34a qualified taxpayer who first hires a qualified full-time employee
35in a taxable year beginning on or after January 2015, the taxable
36year immediately preceding the taxable year in which the qualified
37full-time employee was hired.
38(5) “Acquired” includes any gift, inheritance, transfer incident
39to divorce, or any other transfer, whether or not for consideration.
40(6) “Annual full-time equivalent” means either of the following:
P752 1(A) In the case of a full-time employee paid hourly qualified
2wages, “annual full-time equivalent” means the total number of
3hours worked for the
qualified taxpayer by the employee (not to
4exceed 2,000 hours per employee) divided by 2,000.
5(B) In the case of a salaried full-time employee, “annual
6full-time equivalent” means the total number of weeks worked for
7the qualified taxpayer by the employee divided by 52.
8(7) “Designated census tract” means a census tract within the
9state that is determined by the Department of Finance to have a
10civilian unemployment rate that is within the top 25 percent of all
11census tracts within the state and has a poverty rate within the top
1225 percent of all census tracts within the state, as prescribed in
13Section 13073.5 of the Government Code.
14(8) “Economic development area” means either of the following:
15(A) A former enterprise zone. For purposes of this section,
16
“former enterprise zone” means an enterprise zone designated and
17in effect as of December 31, 2011, any enterprise zone designated
18during 2012, and any revision of an enterprise zone prior to June
1930, 2013, under former Chapter 12.8 (commencing with Section
207070) of Division 7 of Title 1 of the Government Code, as in effect
21on December 31, 2012, excluding any census tract within an
22enterprise zone that is identified by the Department of Finance
23pursuant to Section 13073.5 of the Government Code as a census
24tract within the lowest quartile of census tracts with the lowest
25civilian unemployment and poverty.
26(B) A local agency military base recovery area designated as
27of the effective date of the act adding this subparagraph, in
28accordance with Section 7114 of the Government Code.
29(9) “Minimum wage” means the wage established pursuant to
30Chapter 1 (commencing with Section 1171) of
Part 4 of Division
312 of the Labor Code.
32(10) (A) “Qualified full-time employee” means an individual
33who meets all of the following requirements:
34(i) Performs at least 50 percent of his or her services for the
35qualified taxpayer during the taxable year in a designated census
36tract or economic development area.
37(ii) Receives starting wages that are at least 150 percent of the
38minimum wage.
39(iii) Is hired by the qualified taxpayer on or after January 1,
402014.
P753 1(iv) Is hired by the qualified taxpayer after the date the
2Department of Finance determines that the census tract referred
3to in clause (i) is a designated census tract or that the census tracts
4within a former
enterprise zone are not census tracts with the lowest
5civilian unemployment and poverty.
6(v) Satisfies either of the following conditions:
7(I) Is paid qualified wages by the qualified taxpayer for services
8not less than an average of 35 hours per week.
9(II) Is a salaried employee and was paid compensation during
10the taxable year for full-time employment, within the meaning of
11Section 515 of the Labor Code, by the qualified taxpayer.
12(vi) Upon commencement of employment with the qualified
13taxpayer, satisfies any of the following conditions:
14(I) Was unemployed for the six months immediately preceding
15employment with the qualified taxpayer. In the case of an
16individual who completed a program
of study at a college,
17university, or other postsecondary educational institution, received
18a baccalaureate, postgraduate, or professional degree, and was
19unemployed for the six months immediately preceding employment
20with the qualified taxpayer, that individual must have completed
21that program of study at least 12 months prior to the individual’s
22commencement of employment with the qualified taxpayer.
23(II) Is a veteran who separated from service in the Armed Forces
24of the United States within the 12 months preceding
25commencement of employment with the qualified taxpayer.
26(III) Was a recipient of the credit allowed under Section 32 of
27the Internal Revenue Code, relating to earned income, as applicable
28for federal purposes, for the previous taxable year.
29(IV) Is an ex-offender previously convicted of a felony.
30(V) Is a recipient of either CalWORKs, in accordance with
31Article 2 (commencing with Section 11250) of Chapter 2 of Part
323 of Division 9 of the Welfare and Institutions Code, or general
33assistance, in accordance with Section 17000.5 of the Welfare and
34Institutions Code.
35(B) An individual may only be considered a qualified full-time
36employee for the period of time commencing with the date the
37individual is first employed by the qualified taxpayer and ending
3860 months thereafter.
39(11) (A) “Qualified taxpayer” means a corporation engaged in
40a trade or business within designated census tract or economic
P754 1development area that, during the taxable year, pays or incurs
2qualified wages.
3(B) In the case of any pass-thru entity, the
determination of
4whether a taxpayer is a qualified taxpayer under this section shall
5be made at the entity level and any credit under this section or
6Section 17053.73 shall be allowed to the pass-thru entity and
7passed through to the partners and shareholders in accordance with
8applicable provisions of this part or Part 10 (commencing with
9Section 17001). For purposes of this subdivision, the term
10“pass-thru entity” means any partnership or “S” corporation.
11(C) “Qualified taxpayer” shall not include any of the following:
12(i) Employers that provide temporary help services, as described
13in Code 561320 of the North American Industry Classification
14System (NAICS) published by the United States Office of
15Management and Budget, 2012 edition.
16(ii) Employers that provide retail trade services, as described
17in Sector 44-45 of
the North American Industry Classification
18System (NAICS) published by the United States Office of
19Management and Budget, 2012 edition.
20(iii) Employers that are primarily engaged in providing food
21services, as described in Code 711110, 722511, 722513, 722514,
22or 722515 of the North American Industry Classification System
23(NAICS) published by the United States Office of Management
24and Budget, 2012 edition.
25(iv) Employers that are primarily engaged in services as
26described in Code 713210, 721120, or 722410 of the North
27American Industry Classification System (NAICS) published by
28the United States Office of Management and Budget, 2012 edition.
29(v) (I) An employer that is a sexually oriented business.
30(II) For purposes of this clause:
31(aa)
end delete
32begin insert(ia)end insert “Sexually oriented business” means a nightclub, bar,
33restaurant, or similar commercial enterprise that provides for an
34audience of two or more individuals live nude entertainment or
35live nude performances where the nudity is a function of everyday
36business operations and where nudity is a planned and intentional
37part of the entertainment or performance.
38(ab)
end delete
39begin insert(ib)end insert “Nude” means clothed in a manner that leaves uncovered
40or visible, through less than fully opaque clothing, any portion of
P755 1the genitals or, in the case of a female, any portion of the breasts
2below the top of the areola of the breasts.
3(D) Subparagraph (C) shall not apply to a taxpayer that is a
4“small business.”
5(12) “Qualified wages” means those wages that meet all of the
6following requirements:
7(A) (i) Except as provided in clause (ii), that portion of wages
8paid or incurred by the qualified taxpayer during the taxable year
9to each qualified full-time employee that exceeds 150 percent of
10minimum wage, but does not exceed 350 percent of the minimum
11wage.
12(ii) (I) In the case of a qualified
full-time employee employed
13in a designated pilot area, that portion of wages paid or incurred
14by the qualified taxpayer during the taxable year to each qualified
15full-time employee that exceeds ten dollars ($10) per hour or an
16equivalent amount for salaried employees, but does not exceed
17350 percent of the minimum wage. For qualified full-time
18employees described in the preceding sentence, clause (ii) of
19subparagraph (A) of paragraph (10) is modified by substituting
20“ten dollars ($10) per hour or an equivalent amount for salaried
21employees” for “150 percent of the minimum wage.”
22(II) For purposes of this clause:
23(aa)
end delete
24begin insert(ia)end insert “Designated pilot area” means an area designated as a
25designated pilot area by the Governor’s Office of Business and
26Economic Development.
27(ab)
end delete
28begin insert(ib)end insert Areas that may be designated as a designated pilot area are
29limited to areas within a designated census tract or an economic
30development area with average wages less than the statewide
31average wages, based on information from the Labor Market
32Division of the Employment Development Department, and areas
33within a designated census tract or an economic development area
34based on high poverty or high unemployment.
35(ac)
end delete
36begin insert(ic)end insert The total number of designated pilot areas that may be
37designated is limited to five, one or more of which must be an area
38within five or fewer designated census tracts within a single county
39based on high poverty or high unemployment or an area within an
P756 1economic development area based on high poverty or high
2unemployment.
3(ad)
end delete
4begin insert(id)end insert The designation of a designated pilot area shall be applicable
5for a period of four calendar years, commencing with the first
6calendar year for which the designation of a
designated pilot area
7is effective. The applicable period of a designated pilot area may
8be extended, in the sole discretion of the Governor’s Office of
9Business and Economic Development, for an additional period of
10up to three calendar years. The applicable period, and any extended
11period, shall not extend beyond December 31, 2020.
12(III) The designation of an area as a designated pilot area and
13the extension of the applicable period of a designated pilot area
14shall be at the sole discretion of the Governor’s Office of Business
15and Economic Development and shall not be subject to
16administrative appeal or judicial review.
17(B) Wages paid or incurred during the 60-month period
18beginning with the first day the qualified full-time employee
19commences employment with the qualified taxpayer. In the case
20of any employee who is reemployed, including regularly occurring
21seasonal increase, in
the trade or business operations of the
22qualified taxpayer, this reemployment shall not be treated as
23constituting commencement of employment for purposes of this
24section.
25(C) Except as provided in paragraph (3) of subdivision (m),
26qualified wages shall not include any wages paid or incurred by
27the qualified taxpayer on or after the date that the Department of
28Finance’s redesignation of designated census tracts is effective,
29as provided in paragraph (2) of subdivision (g), so that a census
30tract is no longer determined to be a designated census tract.
31(13) “Seasonal employment” means employment by a qualified
32taxpayer that has regular and predictable substantial reductions in
33trade or business operations.
34(14) (A) “Small business” means a trade or business that has
35aggregate gross receipts, less
returns and allowances reportable to
36this state, of less than two million dollars ($2,000,000) during the
37previous taxable year.
38(B) (i) For purposes of this paragraph, “gross receipts, less
39returns and allowances reportable to this state,” means the sum of
40the gross receipts from the production of business income, as
P757 1defined in subdivision (a) of Section 25120, and the gross receipts
2from the production of nonbusiness income, as defined in
3subdivision (d) of Section 25120.
4(ii) In the case of any trade or business activity conducted by a
5partnership or an “S” corporation, the limitations set forth in
6subparagraph (A) shall be applied to the partnership or “S”
7corporation and to each partner or shareholder.
8(iii) For taxpayers that are required to be included in a combined
9report under Section
25101 or authorized to be included in a
10combined report under Section 25101.15, the dollar amount
11specified in subparagraph (A) shall apply to the aggregate gross
12receipts of all taxpayers that are required to be or authorized to be
13included in a combined report.
14(C) (i) “Small business” shall not include a sexually oriented
15business.
16(ii) For purposes of this subparagraph:
17(I) “Sexually oriented business” means a nightclub, bar,
18restaurant, or similar commercial enterprise that provides for an
19audience of two or more individuals live nude entertainment or
20live nude performances where the nudity is a function of everyday
21business operations and where nudity is a planned and intentional
22part of the entertainment or performance.
23(II) “Nude” means clothed in a manner that leaves uncovered
24or visible, through less than fully opaque clothing, any portion of
25the genitals or, in the case of a female, any portion of the breasts
26below the top of the areola of the breasts.
27(15) An individual is “unemployed” for any period for which
28the individual is all of the following:
29(A) Not in receipt of wages subject to withholding under Section
3013020 of the Unemployment Insurance Code for that period.
31(B) Not a self-employed individual (within the meaning of
32Section 401(c)(1)(B) of the Internal Revenue Code, relating to
33self-employed individual) for that period.
34(C) Not a registered full-time student at a high school, college,
35university, or other postsecondary educational
institution for that
36period.
37(c) The net increase in full-time employees of a qualified
38taxpayer shall be determined as provided by this subdivision:
39(1) (A) The net increase in full-time employees shall be
40determined on an annual full-time equivalent basis by subtracting
P758 1from the amount determined in subparagraph (C) the amount
2determined in subparagraph (B).
3(B) The total number of full-time employees employed in the
4base year by the taxpayer and by any trade or business acquired
5by the taxpayer during the current taxable year.
6(C) The total number of full-time employees employed in the
7current taxable year by the taxpayer and by any trade or business
8acquired during the current taxable year.
9(2) For taxpayers who first commence doing business in this
10state during the taxable year, the number of full-time employees
11for the base year shall be zero.
12(d) For purposes of this section:
13(1) All employees of the trades or businesses that are treated as
14related under Section 267, 318, or 707 of the Internal Revenue
15Code shall be treated as employed by a single taxpayer.
16(2) In determining whether the taxpayer has first commenced
17doing business in this state during the taxable year, the provisions
18of subdivision (g) of Sectionbegin delete 24416.20,end deletebegin insert 24416,end insert without application
19
of paragraph (7) of that subdivision,begin delete shallend delete apply.
20(e) (1) To be eligible for the credit allowed by this section, a
21qualified taxpayer shall, upon hiring a qualified full-time employee,
22request a tentative credit reservation from the Franchise Tax Board
23within 30 days of complying with the Employment Development
24Department’s new hire reporting requirement as provided in
25Section 1088.5 of the Unemployment Insurance Code, in the form
26and manner prescribed by the Franchise Tax Board.
27(2) To obtain a tentative credit reservation with respect to a
28qualified full-time employee, the qualified taxpayer shall provide
29necessary information, as determined by the Franchise Tax Board,
30including the name, the social security number, the start date of
31employment, the rate of pay of the
qualified full-time employee,
32the qualified taxpayer’s gross receipts, less returns and allowances,
33for the previous taxable year, and whether the qualified full-time
34employee is a resident of a targeted employment area, as defined
35in former Section 7072 of the Government Code, as in effect on
36December 31, 2013.
37(3) The qualified taxpayer shall provide the Franchise Tax Board
38an annual certification of employment with respect to each
39qualified full-time employee hire in a previous taxable year, on or
40before the 15th day of the third month of the taxable year. The
P759 1certification shall include necessary information, as determined
2by the Franchise Tax Board, including the name, social security
3number, start date of employment, and rate of pay for each qualified
4full-time employee employed by the qualified taxpayer.
5(4) A tentative credit reservation provided to a taxpayer with
6respect
to an employee of that taxpayer shall not constitute a
7determination by the Franchise Tax Board with respect to any of
8the requirements of this section regarding a taxpayer’s eligibility
9for the credit authorized by this section.
10(f) The Franchise Tax Board shall do all of the following:
11(1) Approve a tentative credit reservation with respect to a
12qualified full-time employee hired during a calendar year.
13(2) Determine the aggregate tentative reservation amount and
14the aggregate small business tentative reservation amount for a
15calendar year.
16(3) A tentative credit reservation request from a qualified
17taxpayer with respect to a qualified full-time employee who is a
18resident of a targeted employment area, as defined in former
19Section 7072 of the
Government Code, as in effect on December
2031, 2013, shall be expeditiously processed by the Franchise Tax
21Board. The residence of a qualified full-time employee in a targeted
22employment area shall have no other effect on the eligibility of an
23individual as a qualified full-time employee or the eligibility of a
24qualified taxpayer for the credit authorized by this section.
25(4) Notwithstanding Section 19542, provide as a searchable
26database on its Internet Web site, for each taxable year beginning
27on or after January 1, 2014, and before January 1, 2021, the
28employer names, amounts of tax credit claimed, and number of
29new jobs created for each taxable year pursuant to this section and
30Section 17053.73.
31(g) (1) The Department of Finance shall, by January 1, 2014,
32and by January 1 of every fifth year thereafter, provide the
33Franchise Tax Board with a list of the
designated census tracts and
34a list of census tracts with the lowest civilian unemployment rate.
35(2) The redesignation of designated census tracts and lowest
36civilian unemployment census tracts by the Department of Finance
37as provided in Section 13073.5 of the Government Code shall be
38effective, for purposes of this credit, one year after the date that
39the Department of Finance redesignates the designated census
40tracts.
P760 1(h) (1) For purposes of this section:
2(A) All employees of the trades or businesses that are treated
3as related under Section 267, 318, or 707 of the Internal Revenue
4Code shall be treated as employed by a single qualified taxpayer.
5(B) All employees of all corporations that are members of the
6same controlled group
of corporations shall be treated as employed
7by a single qualified taxpayer.
8(C) The credit, if any, allowable by this section to each member
9shall be determined by reference to its proportionate share of the
10expense of the qualified wages giving rise to the credit, and shall
11be allocated in that manner.
12(D) If a qualified taxpayer acquires the major portion of a trade
13or business of another taxpayer, hereinafter in this paragraph
14referred to as the predecessor, or the major portion of a separate
15unit of a trade or business of a predecessor, then, for purposes of
16applying this section for any taxable year ending after that
17acquisition, the employment relationship between a qualified
18full-time employee and a qualified taxpayer shall not be treated
19as terminated if the employee continues to be employed in that
20trade or business.
21(2) For purposes of this subdivision, “controlled group of
22corporations” means a controlled group of corporations as defined
23in Section 1563(a) of the Internal Revenue Code, except that:
24(A) “More than 50 percent” shall be substituted for “at least 80
25percent” each place it appears in Section 1563(a)(1) of the Internal
26Revenue Code.
27(B) The determination shall be made without regard to
28subsections (a)(4) and (e)(3)(C) of Section 1563 of the Internal
29Revenue Code.
30(3) Rules similar to the rules provided in Sections 46(e) and
3146(h) of the Internal Revenue Code, as in effect on November 4,
321990, shall apply to both of the following:
33(A) An organization to which Section 593 of the Internal
34Revenue Code applies.
35(B) A regulated investment company or a real estate investment
36trust subject to taxation under this part.
37(i) (1) If the employment of any qualified full-time employee,
38with respect to whom qualified wages are taken into account under
39subdivision (a), is terminated by the qualified taxpayer at any time
40during the first 36 months after commencing employment with
P761 1the qualified taxpayer, whether or not consecutive, the tax imposed
2by this part for the taxable year in which that employment is
3terminated shall be increased by an amount equal to the credit
4allowed under subdivision (a) for that taxable year and all prior
5taxable years attributable to qualified wages paid or incurred with
6respect to that employee.
7(2) Paragraph (1)begin delete shallend deletebegin insert
doesend insert not apply to any of the following:
8(A) A termination of employment of a qualified full-time
9employee who voluntarily leaves the employment of the qualified
10taxpayer.
11(B) A termination of employment of a qualified full-time
12employee who, before the close of the period referred to in
13paragraph (1), becomes disabled and unable to perform the services
14of that employment, unless that disability is removed before the
15close of that period and the qualified taxpayer fails to offer
16reemployment to that employee.
17(C) A termination of employment of a qualified full-time
18employee, if it is determined that the termination was due to the
19misconduct, as defined in Sections 1256-30 to 1256-43, inclusive,
20of Title 22 of the California Code of Regulations, of that employee.
21(D) A termination of employment of a qualified full-time
22employee due to a substantial reduction in the trade or business
23operations of the qualified taxpayer, including reductions due to
24seasonal employment.
25(E) A termination of employment of a qualified full-time
26employee, if that employee is replaced by other qualified full-time
27employees so as to create a net increase in both the number of
28employees and the hours of employment.
29(F) A termination of employment of a qualified full-time
30employee, when that employment is considered seasonal
31employment and the qualified employee is rehired on a seasonal
32basis.
33(3) For purposes of paragraph (1), the employment relationship
34between the qualified taxpayer and a qualified full-time employee
35shall not be treated
as terminated by reason of a mere change in
36the form of conducting the trade or business of the qualified
37taxpayer, if the qualified full-time employee continues to be
38employed in that trade or business and the qualified taxpayer retains
39a substantial interest in that trade or business.
P762 1(4) begin deleteAny end deletebegin insertAn end insertincrease in tax under paragraph (1) shall not be
2treated as tax imposed by this part for purposes of determining the
3amount of any credit allowable under this part.
4(j) In the case where the credit allowed by this section exceeds
5the “tax,” the excess may be carried over to reduce the “tax” in
6the following year, and the succeeding four years if necessary,
7until exhausted.
8(k) The Franchise Tax Board may prescribe rules, guidelines,
9or procedures necessary or appropriate to carry out the purposes
10of this section, including any guidelines regarding the allocation
11of the credit allowed under this section. Chapter 3.5 (commencing
12with Section 11340) of Part 1 of Division 3 of Title 2 of the
13Government Code shall not apply to any rule, guideline, or
14procedure prescribed by the Franchise Tax Board pursuant to this
15section.
16(l) (1) Upon the effective date of this section, the Department
17of Finance shall estimate the total dollar amount of credits that
18will be claimed under this section with respect to each fiscal year
19from the 2013-14 fiscal year to the 2020 -21 fiscal year, inclusive.
20(2) The Franchise Tax Board shall annually provide to the Joint
21Legislative
Budget Committee, by no later than March 1, a report
22of the total dollar amount of the credits claimed under this section
23with respect to the relevant fiscal year. The report shall compare
24the total dollar amount of credits claimed under this section with
25respect to that fiscal year with the department’s estimate with
26respect to that same fiscal year. If the total dollar amount of credits
27claimed for the fiscal year is less than the estimate for that fiscal
28year, the report shall identify options for increasing annual claims
29of the credit so as to meet estimated amounts.
30(m) (1) This section shall remain in effect only until December
311, 2024, and as of that date is repealed.
32(2) Notwithstanding paragraph (1) of subdivision (a), this section
33shall continue to be operative for taxable years beginning on or
34after January 1, 2021, but only with respect to
qualified full-time
35employees who commenced employment with a qualified taxpayer
36in a designated census tract or economic development area in a
37taxable year beginning before January 1, 2021.
38(3) This section shall remain operative for any qualified taxpayer
39with respect to any qualified full-time employee after the
40designated census tract is no longer designated or an economic
P763 1development area ceases to be an economic development area, as
2defined in this section, for the remaining period, if any, of the
360-month period after the original date of hiring of an otherwise
4qualified full-time employee and any wages paid or incurred with
5respect to those qualified full-time employees after the designated
6census tract is no longer designated or an economic development
7area ceases to be an economic development area, as defined in this
8section, shall be treated as qualified wages under this section,
9provided the employee satisfies any other requirements
of
10paragraphs (10) and (12) of subdivision (b), as if the designated
11census tract was still designated and binding or the economic
12development area was still in existence.
Section 23634 of the Revenue and Taxation Code
14 is amended to read:
(a) For each taxable year beginning on or after January
161, 1998, there shall be allowed a credit against the “tax” (as defined
17by Section 23036) to a qualified taxpayer who employs a qualified
18employee in a targeted tax area during the taxable year. The credit
19shall be equal to the sum of each of the following:
20(1) Fifty percent of qualified wages in the first year of
21employment.
22(2) Forty percent of qualified wages in the second year of
23employment.
24(3) Thirty percent of qualified wages in the third year of
25employment.
26(4) Twenty percent of qualified wages in the fourth year
of
27employment.
28(5) Ten percent of qualified wages in the fifth year of
29employment.
30(b) For purposes of this section:
31(1) “Qualified wages” means:
32(A) That portion of wages paid or incurred by the qualified
33taxpayer during the taxable year to qualified employees that does
34not exceed 150 percent of the minimum wage.
35(B) Wages received during the 60-month period beginning with
36the first day the employee commences employment with the
37qualified taxpayer. Reemployment in connection with any increase,
38including a regularly occurring seasonal increase, in the trade or
39business operations of the qualified taxpayer does not constitute
40commencement of employment for purposes of this section.
P764 1(C) Qualified wages do not include any wages paid or incurred
2by the qualified taxpayer on or after the targeted tax area expiration
3date. However, wages paid or incurred with respect to qualified
4employees who are employed by the qualified taxpayer within the
5targeted tax area within the 60-month period prior to the targeted
6tax area expiration date shall continue to qualify for the credit
7under this section after the targeted tax area expiration date, in
8accordance with all provisions of this section applied as if the
9targeted tax area designation were still in existence and binding.
10(2) “Minimum wage” means the wage established by the
11Industrial Welfare Commission as provided for in Chapter 1
12(commencing with Section 1171) of Part 4 of Division 2 of the
13Labor Code.
14(3) “Targeted tax area expiration date” means the
date the
15targeted tax area designation expires, is revoked, is no longer
16binding, becomes inoperative, or is repealed.
17(4) (A) “Qualified employee” means an individual who meets
18all of the following requirements:
19(i) At least 90 percent of his or her services for the qualified
20taxpayer during the taxable year are directly related to the conduct
21of the qualified taxpayer’s trade or business located in a targeted
22tax area.
23(ii) Performs at least 50 percent of his or her services for the
24qualified taxpayer during the taxable year in a targeted tax area.
25(iii) Is hired by the qualified taxpayer after the date of original
26designation of the area in which services were performed as a
27targeted tax area.
28(iv) Is any of the following:
29(I) Immediately preceding the qualified employee’s
30commencement of employment with the qualified taxpayer, was
31a person eligible for services under the federal Job Training
32Partnership Act (29 U.S.C. Sec. 1501 et seq.), or its successor,
33who is receiving, or is eligible to receive, subsidized employment,
34training, or services funded by the federal Job Training Partnership
35Act, or its successor.
36(II) Immediately preceding the qualified employee’s
37commencement of employment with the qualified taxpayer, was
38a person eligible to be a voluntary or mandatory registrant under
39the Greater Avenues for Independence Act of 1985 (GAIN)
40provided for pursuant to Article 3.2 (commencing with Section
P765 111320) of Chapter 2 of Part 3 of Division 9 of the Welfare and
2Institutions Code, or its successor.
3(III) Immediately preceding the qualified employee’s
4commencement of employment with the qualified taxpayer, was
5an economically disadvantaged individual 14 years of age or older.
6(IV) Immediately preceding the qualified employee’s
7commencement of employment with the qualified taxpayer, was
8a dislocated worker who meets any of the following:
9(aa)
end delete
10begin insert(ia)end insert Has been terminated or laid off or who has received a notice
11of termination or layoff from employment, is eligible for or has
12exhausted entitlement to unemployment insurance benefits, and
13is unlikely to
return to his or her previous industry or occupation.
14(bb)
end delete
15begin insert(ib)end insert Has been terminated or has received a notice of termination
16of employment as a result of any permanent closure or any
17substantial layoff at a plant, facility, or enterprise, including an
18individual who has not received written notification but whose
19employer has made a public announcement of the closure or layoff.
20(cc)
end delete
21begin insert(ic)end insert Is long-term unemployed and has limited opportunities for
22employment or reemployment in the same or a similar occupation
23in the area in which the individual resides, including an individual
2455 years of age or older who may have substantial barriers to
25employment by reason of age.
26(dd)
end delete
27begin insert(id)end insert Was self-employed (including farmers and ranchers) and
28is unemployed as a result of general economic conditions in the
29community in which he or she resides or because of natural
30disasters.
31(ee)
end delete
32begin insert(ie)end insert Was a civilian employee of the Department of Defense
33employed at a military installation being closed or realigned under
34the Defense Base Closure and Realignment Act of 1990.
35(ff)
end delete
36begin insert(if)end insert Was an active member of the Armed Forces or National
37Guard as of September 30, 1990, and was either involuntarily
38separated or separated pursuant to a special benefits program.
39(gg)
end delete
P766 1begin insert(ig)end insert Is a seasonal or migrant worker who experiences chronic
2seasonal unemployment and underemployment in the agriculture
3industry, aggravated by continual advancements in technology and
4mechanization.
5(hh)
end delete
6begin insert(ih)end insert Has been terminated or laid off, or has received a notice of
7termination or layoff, as a consequence of compliance with the
8Clean Air Act.
9(V) Immediately preceding the qualified employee’s
10commencement of employment with the qualified
taxpayer, was
11a disabled individual who is eligible for or enrolled in, or has
12completed a state rehabilitation plan or is a service-connected
13disabled veteran, veteran of the Vietnam era, or veteran who is
14recently separated from military service.
15(VI) Immediately preceding the qualified employee’s
16commencement of employment with the qualified taxpayer, was
17an ex-offender. An individual shall be treated as convicted if he
18or she was placed on probation by a state court without a finding
19of guilt.
20(VII) Immediately preceding the qualified employee’s
21commencement of employment with the qualified taxpayer, was
22a person eligible for or a recipient of any of the following:
23(aa)
end delete24begin insert(ia)end insert Federal Supplemental Security Income benefits.
25(bb)
end delete26begin insert(ib)end insert Aid to Families with Dependent Children.
27(cc)
end delete28begin insert(ic)end insert CalFresh benefits.
29(dd)
end delete30begin insert(id)end insert State and local general assistance.
31(VIII) Immediately preceding the qualified employee’s
32commencement of employment with the qualified taxpayer, was
33a member of a federally recognized Indian tribe, band, or other
34group of Native American descent.
35(IX) Immediately preceding the qualified employee’s
36commencement of employment with the qualified taxpayer, was
37a resident of a targeted tax area.
38(X) Immediately preceding the qualified employee’s
39commencement of employment with the taxpayer, was a member
P767 1of a targeted group, as defined in Section 51(d) of the Internal
2Revenue Code, or its successor.
3(B) Priority for employment shall be provided to an individual
4who is enrolled in a qualified program under the federal Job
5Training Partnership Act or the Greater Avenues for Independence
6Act of 1985 or who is eligible as a member of a targeted group
7under the Work Opportunity Tax Credit (Section 51 of the Internal
8Revenue Code), or its successor.
9(5) (A) “Qualified taxpayer” means a person or entity that meets
10both of the following:
11(i) Is engaged in a trade or business within a targeted tax area
12designated pursuant to Chapter 12.93 (commencing with Section
137097) of Division 7 of Title 1 of the Government Code.
14(ii) Is engaged in those lines of business described in Codes
152000 to 2099, inclusive; 2200 to 3999, inclusive; 4200 to 4299,
16inclusive; 4500 to 4599, inclusive; and 4700
to 5199, inclusive,
17of the Standard Industrial Classification (SIC) Manual published
18by the United States Office of Management and Budget, 1987
19edition.
20(B) In the case of any passthrough entity, the determination of
21whether a taxpayer is a qualified taxpayer under this section shall
22be made at the entity level and any credit under this section or
23Section 17053.34 shall be allowed to the passthrough entity and
24passed through to the partners or shareholders in accordance with
25applicable provisions of this part or Part 10 (commencing with
26Section 17001). For purposes of this subparagraph, the term
27“passthrough entity” means any partnership or S corporation.
28(6) “Seasonal employment” means employment by a qualified
29taxpayer that has regular and predictable substantial reductions in
30trade or business operations.
31(c) If
the qualified taxpayer is allowed a credit for qualified
32wages pursuant to this section, only one credit shall be allowed to
33the taxpayer under this part with respect to those qualified wages.
34(d) The qualified taxpayer shall do both of the following:
35(1) Obtain from the Employment Development Department, as
36permitted by federal law, the local county or city Job Training
37Partnership Act administrative entity, the local county GAIN office
38or social services agency, or the local government administering
39the targeted tax area, a certification that provides that a qualified
40employee meets the eligibility requirements specified in clause
P768 1(iv) of subparagraph (A) of paragraph (4) of subdivision (b). The
2Employment Development Department may provide preliminary
3screening and referral to a certifying agency. The Department of
4Housing and Community Development shall develop regulations
5for
the issuance of certificates pursuant to subdivision (g) of
6Section 7097 of the Government Code, and shall develop forms
7for this purpose.
8(2) Retain a copy of the certification and provide it upon request
9to the Franchise Tax Board.
10(e) (1) For purposes of this section:
11(A) All employees of all corporations that are members of the
12same controlled group of corporations shall be treated as employed
13by a single taxpayer.
14(B) The credit, if any, allowable by this section to each member
15shall be determined by reference to its proportionate share of the
16expense of the qualified wages giving rise to the credit, and shall
17be allocated in that manner.
18(C) For purposes of this
subdivision, “controlled group of
19corporations” means “controlled group of corporations” as defined
20in Section 1563(a) of the Internal Revenue Code, except that:
21(i) “More than 50 percent” shall be substituted for “at least 80
22percent” each place it appears in Section 1563(a)(1) of the Internal
23Revenue Code.
24(ii) The determination shall be made without regard to
25subsections (a)(4) and (e)(3)(C) of Section 1563 of the Internal
26Revenue Code.
27(2) If an employer acquires the major portion of a trade or
28business of another employer (hereinafter in this paragraph referred
29to as the “predecessor”) or the major portion of a separate unit of
30a trade or business of a predecessor, then, for purposes of applying
31this section (other than subdivision (f)) for any calendar year ending
32after that acquisition, the employment
relationship between a
33qualified employee and an employer shall not be treated as
34terminated if the employee continues to be employed in that trade
35or business.
36(f) (1) (A) If the employment, other than seasonal employment,
37of any qualified employee with respect to whom qualified wages
38are taken into account under subdivision (a) is terminated by the
39qualified taxpayer at any time during the first 270 days of that
40employment (whether or not consecutive) or before the close of
P769 1the 270th calendar day after the day in which that employee
2completes 90 days of employment with the qualified taxpayer, the
3tax imposed by this part for the taxable year in which that
4employment is terminated shall be increased by an amount equal
5to the credit allowed under subdivision (a) for that taxable year
6and all prior taxable years attributable to qualified wages paid or
7incurred with respect to that employee.
8(B) If the seasonal employment of any qualified employee, with
9respect to whom qualified wages are taken into account under
10subdivision (a) is not continued by the qualified taxpayer for a
11period of 270 days of employment during the 60-month period
12beginning with the day the qualified employee commences seasonal
13employment with the qualified taxpayer, the tax imposed by this
14part, for the taxable year that includes the 60th month following
15the month in which the qualified employee commences seasonal
16employment with the qualified taxpayer, shall be increased by an
17amount equal to the credit allowed under subdivision (a) for that
18taxable year and all prior taxable years attributable to qualified
19wages paid or incurred with respect to that qualified employee.
20(2) (A) Subparagraph (A) of paragraph (1)begin delete shallend deletebegin insert
doesend insert not apply
21to any of the following:
22(i) A termination of employment of a qualified employee who
23voluntarily leaves the employment of the qualified taxpayer.
24(ii) A termination of employment of a qualified employee who,
25before the close of the period referred to in subparagraph (A) of
26paragraph (1), becomes disabled and unable to perform the services
27of that employment, unless that disability is removed before the
28close of that period and the qualified taxpayer fails to offer
29reemployment to that employee.
30(iii) A termination of employment of a qualified employee, if
31it is determined that the termination was due to the misconduct (as
32defined in Sections 1256-30 to 1256-43, inclusive, of Title 22 of
33the California Code of Regulations) of that employee.
34(iv) A termination of employment of a qualified employee due
35to a substantial reduction in the trade or business operations of the
36taxpayer.
37(v) A termination of employment of a qualified employee, if
38that employee is replaced by other qualified employees so as to
39create a net increase in both the number of employees and the
40hours of employment.
P770 1(B) Subparagraph (B) of paragraph (1)begin delete shallend deletebegin insert doesend insert not apply to
2any of the following:
3(i) A failure to continue the seasonal employment of a qualified
4employee who voluntarily fails to return to the seasonal
5employment of the
qualified taxpayer.
6(ii) A failure to continue the seasonal employment of a qualified
7employee who, before the close of the period referred to in
8subparagraph (B) of paragraph (1), becomes disabled and unable
9to perform the services of that seasonal employment, unless that
10disability is removed before the close of that period and the
11qualified taxpayer fails to offer seasonal employment to that
12qualified employee.
13(iii) A failure to continue the seasonal employment of a qualified
14employee, if it is determined that the failure to continue the
15seasonal employment was due to the misconduct (as defined in
16Sections 1256-30 to 1256-43, inclusive, of Title 22 of the California
17Code of Regulations) of that qualified employee.
18(iv) A failure to continue seasonal employment of a qualified
19employee due to a substantial
reduction in the regular seasonal
20trade or business operations of the qualified taxpayer.
21(v) A failure to continue the seasonal employment of a qualified
22employee, if that qualified employee is replaced by other qualified
23employees so as to create a net increase in both the number of
24seasonal employees and the hours of seasonal employment.
25(C) For purposes of paragraph (1), the employment relationship
26between the qualified taxpayer and a qualified employee shall not
27be treated as terminated by either of the following:
28(i) By a transaction to which Section 381(a) of the Internal
29Revenue Code applies, if the qualified employee continues to be
30employed by the acquiring corporation.
31(ii) By reason of a mere change in the form of conducting the
32trade or
business of the qualified taxpayer, if the qualified
33employee continues to be employed in that trade or business and
34the qualified taxpayer retains a substantial interest in that trade or
35business.
36(3) begin deleteAny end deletebegin insertAn end insertincrease in tax under paragraph (1) shall not be
37treated as tax imposed by this part for purposes of determining the
38amount of any credit allowable under this part.
39(g) Rules similar to the rules provided in Sections 46(e) and (h)
40of the Internal Revenue Codebegin delete shallend delete apply to both of the following:
P771 1(1) An organization to which Section 593 of
the Internal
2Revenue Code applies.
3(2) A regulated investment company or a real estate investment
4trust subject to taxation under this part.
5(h) For purposes of this section, “targeted tax area” means an
6area designated pursuant to Chapter 12.93 (commencing with
7Section 7097) of Division 7 of Title 1 of the Government Code.
8(i) In the casebegin delete whereend deletebegin insert in whichend insert the credit otherwise allowed under
9this section exceeds the “tax” for the taxable year, that portion of
10the credit that exceeds the “tax” may be carried over and added to
11the credit, if any, in the succeeding 10 taxable years, if necessary,
12until the credit is exhausted. The
credit shall be applied first to the
13earliest taxable years possible.
14(j) (1) The amount of the credit otherwise allowed under this
15section and Section 23633, including any credit carryover from
16prior years, that may reduce the “tax” for the taxable year shall
17not exceed the amount of tax that would be imposed on the
18qualified taxpayer’s business income attributable to the targeted
19tax area determined as if that attributable income represented all
20of the income of the qualified taxpayer subject to tax under this
21part.
22(2) Attributable income shall be that portion of the taxpayer’s
23California source business income that is apportioned to the
24targeted tax area. For that purpose, the taxpayer’s business income
25attributable to sources in this state first shall be determined in
26accordance with Chapter 17 (commencing with Section 25101).
27That business income shall
be further apportioned to the targeted
28tax area in accordance with Article 2 (commencing with Section
2925120) of Chapter 17, modified for purposes of this section in
30accordance with paragraph (3).
31(3) Business income shall be apportioned to the targeted tax
32area by multiplying the total California business income of the
33taxpayer by a fraction, the numerator of which is the property
34factor plus the payroll factor, and the denominator of which is two.
35For purposes of this paragraph:
36(A) The property factor is a fraction, the numerator of which is
37the average value of the taxpayer’s real and tangible personal
38property owned or rented and used in the targeted tax area during
39the taxable year, and the denominator of which is the average value
P772 1of all the taxpayer’s real and tangible personal property owned or
2rented and used in this state during the taxable year.
3(B) The payroll factor is a fraction, the numerator of which is
4the total amount paid by the taxpayer in the targeted tax area during
5the taxable year for compensation, and the denominator of which
6is the total compensation paid by the taxpayer in this state during
7the taxable year.
8(4) The portion of any credit remaining, if any, after application
9of this subdivision, shall be carried over to succeeding taxable
10years, if necessary, until the credit is exhausted, as if it were an
11amount exceeding the “tax” for the taxable year, as provided in
12subdivision (i). However, the portion of any credit remaining for
13carryover to taxable years beginning on or after January 1, 2014,
14if any, after application of this subdivision, shall be carried over
15only to the succeeding 10 taxable years if necessary, until the credit
16is exhausted, as if it were an amount exceeding the “tax” for the
17taxable
year, as provided in subdivision (i).
18(5) In the event that a credit carryover is allowable under
19subdivision (h) for any taxable year after the targeted tax area
20designation has expired or been revoked, the targeted tax area shall
21be deemed to remain in existence for purposes of computing the
22limitation specified in this subdivision.
23(k) (1) Except as provided in paragraph (2), this section shall
24cease to be operative for taxable years beginning on or after January
251, 2014, and shall be repealed on December 1, 2019.
26(2) The section shall continue to apply with respect to qualified
27employees who are employed by the qualified taxpayer within the
28targeted tax area within the 60-month period immediately preceding
29January 1, 2014, and qualified wages paid or incurred with respect
30to those qualified
employees shall continue to qualify for the credit
31under this section for taxable years beginning on or after January
321, 2014, in accordance with this section, as amended by the act
33adding this subdivision.
Section 23732 of the Revenue and Taxation Code
35 is amended to read:
Section 512 of the Internal Revenue Code, relating to
37unrelated business taxable income,begin delete shall apply,end deletebegin insert applies,end insert except as
38otherwise provided.
P773 1(a) Section 512(a)(2) of the Internal Revenue Code, relating to
2special rule for foreign organizations,begin delete shallend deletebegin insert doesend insert notbegin delete be applicableend delete
3begin insert
applyend insert.
4(b) Section 512(a)(3) of the Internal Revenue Code, relating to
5special rules applicable to organizations described in paragraph
6(7), (9), (17), or (20) of Section 501(c), shall be modified as
7follows:
8(1) The reference to Section 501(c)(7) of the Internal Revenue
9Code shall be modified to refer to Section 23701g.
10(2) The reference to Section 501(c)(9) of the Internal Revenue
11Code shall be modified to refer to Section 23701i.
12(3) The reference to Section 501(c)(17) of the Internal Revenue
13Code shall be modified to refer to Section 23701n.
14(4) The reference to Section 501(c)(20) of the Internal Revenue
15Code shall be modified to refer to Section
23701q.
16(c) Section 512(d) of the Internal Revenue Code, relating to
17treatment of dues of agricultural or horticultural organizations,
18shall be modified by substituting “Section 23701a” for “Section
19501(c)(5)” of the Internal Revenue Code.
20(d) Section 512(b)(13)(E) of the Internal Revenue Code is
21modified as follows:
22(1) The phrase “tax imposed under Part 10 (commencing with
23Section 17001) or this part” shall be substituted for “tax imposed
24by this chapter” in Section 512(b)(13)(E)(ii) of the Internal
25Revenue Code.
26(2) The phrase “January 1, 2010,” shall be substituted for “the
27date of the enactment of this subparagraph” in Section
28512(b)(13)(iii)(I) of the Internal Revenue Code.
29(3) The amendments made by the act adding this subdivision
30shall apply to payments received or accrued on or after January 1,
312010.
Section 24347.6 of the Revenue and Taxation Code
33 is amended to read:
(a) An excess disaster loss, as defined in subdivision
35(c), shall be carried to other taxable years as provided in
36subdivision (b), with respect to losses sustained in the County of
37Mendocino as a result of the tsunami that occurred in March 2011.
38(b) (1) In the case of any loss allowed under Section 165 of the
39Internal Revenue Code, relating to losses, any excess disaster loss
40shall be carried forward to each of the five taxable years following
P774 1the taxable year for which the loss is claimed. However, if there
2is any excess disaster loss remaining after the five-year period,
3then the applicable percentage, as set forth in paragraph (1) of
4subdivision (b) of Sectionbegin delete 24416.20,end deletebegin insert
24416,end insert of that excess disaster
5loss shall be carried forward to each of the next 10 taxable years.
6(2) The entire amount of any excess disaster loss as defined in
7subdivision (c) shall be carried to the earliest of the taxable years
8to which, by reason of subdivision (b), the loss may be carried.
9The portion of the loss which shall be carried to each of the other
10taxable years shall be the excess, if any, of the amount of excess
11disaster loss over the sum of the net income for each of the prior
12taxable years to which that excess disaster loss is carried.
13(c) “Excess disaster loss” means a disaster loss computed
14pursuant to Section 165 of the Internal Revenue Code, which
15exceeds the net income of the year of loss or, if the election under
16Section 165(i) of the Internal Revenue Code is made, the net
17income of the year preceding the loss.
18(d) This section and Section 165(i) of the Internal Revenue Code
19begin delete shall be applicableend deletebegin insert applyend insert to any of the losses listed in subdivision
20(a) sustained in any county or city in this state which was
21proclaimed by the Governor to be in a state of disaster.
22(e) begin deleteAny end deletebegin insertA end insertcorporation subject to Section 25101 or 25101.15
23that has disaster losses pursuant to this section shall determine the
24excess disaster loss to be carried to other taxable years under the
25principles specified in Section 25108 relating to net operating
26
losses.
27(f) Losses allowable under this section shall not be taken into
28account in computing a net operating loss deduction under Section
29172 of the Internal Revenue Code.
30(g) For losses described in subdivision (a), the election under
31Section 165(i) of the Internal Revenue Code may be made on a
32return or amended return filed on or before the due date of the
33return (determined with regard to extension) for the taxable year
34in which the disaster occurred.
Section 24347.10 of the Revenue and Taxation Code
36 is amended to read:
(a) An excess disaster loss, as defined in subdivision
38(c), shall be carried to other taxable years as provided in
39subdivision (b), with respect to losses sustained in the County of
P775 1San Mateo as a result of the explosion and fire that occurred in
2September 2010.
3(b) (1) In the case of any loss allowed under Section 165 of the
4Internal Revenue Code, relating to losses, any excess disaster loss
5shall be carried forward to each of the five taxable years following
6the taxable year for which the loss is claimed. However, if there
7is any excess disaster loss remaining after the five-year period,
8then the applicable percentage, as set forth in paragraph (1) of
9subdivision (b) of Sectionbegin delete 24416.20,end deletebegin insert
24416,end insert of that excess disaster
10loss shall be carried forward to each of the next 10 taxable years.
11(2) The entire amount of any excess disaster loss as defined in
12subdivision (c) shall be carried to the earliest of the taxable years
13to which, by reason of subdivision (b), the loss may be carried.
14The portion of the loss which shall be carried to each of the other
15taxable years shall be the excess, if any, of the amount of excess
16disaster loss over the sum of the net income for each of the prior
17taxable years to which that excess disaster loss is carried.
18(c) “Excess disaster loss” means a disaster loss computed
19pursuant to Section 165 of the Internal Revenue Code, which
20exceeds the net income of the year of loss or, if the election under
21Section 165(i) of the Internal Revenue Code is made, the net
22income of the year preceding the loss.
23(d) This section and Section 165(i) of the Internal Revenue Code
24begin delete shall be applicableend deletebegin insert applyend insert to any of the losses listed in subdivision
25(a) sustained in any county or city in this state which was
26proclaimed by the Governor to be in a state of disaster.
27(e) begin deleteAny end deletebegin insertA end insertcorporation subject to Section 25101 or 25101.15
28that has disaster losses pursuant to this section shall determine the
29excess disaster loss to be carried to other taxable years under the
30principles specified in Section 25108 relating to net operating
31
losses.
32(f) Losses allowable under this sectionbegin delete mayend deletebegin insert shallend insert not be taken
33into account in computing a net operating loss deduction under
34Section 172 of the Internal Revenue Code.
35(g) For losses described in subdivision (a), the election under
36Section 165(i) of the Internal Revenue Code may be made on a
37return or amended return filed on or before the due date of the
38return (determined with regard to extension) for the taxable year
39in which the disaster occurred.
Section 24355.4 of the Revenue and Taxation Code,
2as added by Chapter 691 of the Statutes of 2005, is amended and
3renumbered to read:
For purposes of computing the depreciation deduction
6pursuant to Section 24349, the useful life of any Alaska natural
7gas pipeline, as defined in Section 168(i)(16) of the Internal
8Revenue Code, shall be seven years.
Section 24416.20 of the Revenue and Taxation Code
10 is amended and renumbered to read:
Except as provided in Sections 24416.1, 24416.2,
1324416.4, 24416.5, 24416.6, and 24416.7, a net operating loss
14deduction shall be allowed in computing net income under Section
1524341 and shall be determined in accordance with Section 172 of
16the Internal Revenue Code, except as otherwise provided.
17(a) (1) Net operating losses attributable to taxable years
18beginning before January 1, 1987, shall not be allowed.
19(2) A net operating loss shall not be carried forward to any
20taxable year beginning before January
1, 1987.
21(b) (1) Except as provided in paragraphs (2) and (3), the
22provisions of Section 172(b)(2) of the Internal Revenue Code,
23relating to amount of carrybacks and carryovers, shall be modified
24so that the applicable percentage of the entire amount of the net
25operating loss for any taxable year shall be eligible for carryover
26to any subsequent taxable year. For purposes of this subdivision,
27the applicable percentage shall be:
28(A) Fifty percent for any taxable year beginning before January
291, 2000.
30(B) Fifty-five percent for any taxable year beginning on or after
31January 1, 2000, and before January 1, 2002.
32(C) Sixty percent for any taxable year beginning on or after
33January 1, 2002, and before January 1, 2004.
34(D) One hundred percent for any taxable year beginning on or
35after January 1, 2004.
36(2) In the case of a taxpayer who has a net operating loss in any
37taxable year beginning on or after January 1, 1994, and who
38operates a new business during that taxable year, each of the
39following shall apply to each loss incurred during the first three
40taxable years of operating the new business:
P777 1(A) If the net operating loss is equal to or less than the net loss
2from the new business, 100 percent of the net operating loss shall
3be carried forward as provided in subdivision (e).
4(B) If the net operating loss is greater than the net loss from the
5new business, the net operating loss shall be carried over as
6follows:
7(i) With respect to an amount equal to the net loss from the new
8business, 100 percent of that amount shall be carried forward as
9provided in subdivision (e).
10(ii) With respect to the portion of the net operating loss that
11exceeds the net loss from the new business, the applicable
12percentage of that amount shall be carried forward as provided in
13subdivision (d).
14(C) For purposes of Section 172(b)(2) of the Internal Revenue
15Code, the amount described in clause (ii) of subparagraph (B) shall
16be absorbed before the amount described in clause (i) of
17subparagraph (B).
18(3) In the case of a taxpayer who has a net operating loss in any
19taxable year beginning on or after January 1, 1994, and who
20operates an eligible small business during that taxable year, each
21of the
followingbegin delete shallend delete apply:
22(A) If the net operating loss is equal to or less than the net loss
23from the eligible small business, 100 percent of the net operating
24loss shall be carried forward to the taxable years specified in
25paragraph (1) of subdivision (e).
26(B) If the net operating loss is greater than the net loss from the
27eligible small business, the net operating loss shall be carried over
28as follows:
29(i) With respect to an amount equal to the net loss from the
30eligible small business, 100 percent of that amount shall be carried
31forward as provided in subdivision (e).
32(ii) With respect to that portion of the net operating loss that
33exceeds the net loss from the eligible
small business, the applicable
34percentage of that amount shall be carried forward as provided in
35subdivision (e).
36(C) For purposes of Section 172(b)(2) of the Internal Revenue
37Code, the amount described in clause (ii) of subparagraph (B) shall
38be absorbed before the amount described in clause (i) of
39subparagraph (B).
P778 1(4) In the case of a taxpayer who has a net operating loss in a
2taxable year beginning on or after January 1, 1994, and who
3operates a business that qualifies as both a new business and an
4eligible small business under this section, that business shall be
5treated as a new business for the first three taxable years of the
6new business.
7(5) In the case of a taxpayer who has a net operating loss in a
8taxable year beginning on or after January 1, 1994, and who
9operates more than one business, and more than
one of those
10businesses qualifies as either a new business or an eligible small
11business under this section, paragraph (2) shall be applied first,
12except that if there is any remaining portion of the net operating
13loss after application of clause (i) of subparagraph (B) of paragraph
14(2), paragraph (3) shall be applied to the remaining portion of the
15net operating loss as though that remaining portion of the net
16operating loss constituted the entire net operating loss.
17(6) For purposes of this section, “net loss” means the amount
18of net loss after application of Sections 465 and 469 of the Internal
19Revenue Code.
20(c) For any taxable year in which the taxpayer has in effect a
21water’s-edge election under Section 25110, the deduction of a net
22operating loss carryover shall be denied to the extent that the net
23operating loss carryover was determined by taking into account
24the income and
factors of an affiliated corporation in a combined
25report whose income and apportionment factors would not have
26been taken into account if a water’s-edge election under Section
2725110 had been in effect for the taxable year in which the loss was
28incurred.
29(d) Section 172(b)(1) of the Internal Revenue Code, relating to
30years to which the loss may be carried, is modified as follows:
31(1) Net operating loss carrybacks shall not be allowed for any
32net operating losses attributable to taxable years beginning before
33January 1, 2013.
34(2) A net operating loss attributable to taxable years beginning
35on or after January 1, 2013, shall be a net operating loss carryback
36to each of the two taxable years preceding the taxable year of the
37loss in lieu of the number of years provided therein.
38(A) For a net operating loss attributable to a taxable year
39beginning on or after January 1, 2013, and before January 1, 2014,
P779 1the amount of carryback to any taxable year shall not exceed 50
2percent of the net operating loss.
3(B) For a net operating loss attributable to a taxable year
4beginning on or after January 1, 2014, and before January 1, 2015,
5the amount of carryback to any taxable year shall not exceed 75
6percent of the net operating loss.
7(C) For a net operating loss attributable to a taxable year
8beginning on or after January 1, 2015, the amount of carryback to
9any taxable year shall not exceed 100 percent of the net operating
10loss.
11(3) Notwithstanding paragraph (2), Section 172(b)(1)(B) of the
12Internal Revenue Code, relating to special rules for
REITs, and
13Section 172(b)(1)(E) of the Internal Revenue Code, relating to
14excess interest loss, and Section 172(h) of the Internal Revenue
15Code, relating to corporate equity reduction interest losses, shall
16apply as provided.
17(4) A net operating loss carryback shall not be carried back to
18any taxable year beginning before January 1, 2011.
19(e) (1) (A) For a net operating loss for any taxable year
20beginning on or after January 1, 1987, and before January 1, 2000,
21Section 172(b)(1)(A)(ii) of the Internal Revenue Code is modified
22to substitute “five taxable years” in lieu of “20 years” except as
23otherwise provided in paragraphs (2), (3), and (4).
24(B) For a net operating loss for any income year beginning on
25or after January 1, 2000, and before January 1, 2008, Section
26
172(b)(1)(A)(ii) of the Internal Revenue Code is modified to
27substitute “10 taxable years” in lieu of “20 taxable years.”
28(2) For any income year beginning before January 1, 2000, in
29the case of a “new business,” the “five taxable years” referred to
30in paragraph (1) shall be modified to read as follows:
31(A) “Eight taxable years” for a net operating loss attributable
32to the first taxable year of that new business.
33(B) “Seven taxable years” for a net operating loss attributable
34to the second taxable year of that new business.
35(C) “Six taxable years” for a net operating loss attributable to
36the third taxable year of that new business.
37(3) For any carryover of a net operating loss for which a
38
deduction is denied by Section 24416.3, the carryover period
39specified in this subdivision shall be extended as follows:
P780 1(A) By one year for a net operating loss attributable to taxable
2years beginning in 1991.
3(B) By two years for a net operating loss attributable to taxable
4years beginning prior to January 1, 1991.
5(4) The net operating loss attributable to taxable years beginning
6on or after January 1, 1987, and before January 1, 1994, shall be
7a net operating loss carryover to each of the 10 taxable years
8following the year of the loss if it is incurred by a corporation that
9was either of the following:
10(A) Under the jurisdiction of the court in a Title 11 or similar
11case at any time prior to January 1, 1994. The loss carryover
12provided in the
preceding sentence shall not apply to any loss
13incurred in an income year after the taxable year during which the
14corporation is no longer under the jurisdiction of the court in a
15Title 11 or similar case.
16(B) In receipt of assets acquired in a transaction that qualifies
17as a tax-free reorganization under Section 368(a)(1)(G) of the
18Internal Revenue Code.
19(f) For purposes of this section:
20(1) “Eligible small business” means any trade or business that
21has gross receipts, less returns and allowances, of less than one
22million dollars ($1,000,000) during the income year.
23(2) Except as provided in subdivision (g), “new business” means
24any trade or business activity that is first commenced in this state
25on or after January 1, 1994.
26(3) “Title 11 or similar case” shall have the same meaning as
27in Section 368(a)(3) of the Internal Revenue Code.
28(4) In the case of any trade or business activity conducted by a
29partnership or an “S” corporation, paragraphs (1) and (2) shall be
30applied to the partnership or “S” corporation.
31(g) For purposes of this section, in determining whether a trade
32or business activity qualifies as a new business under paragraph
33(2) of subdivision (e), the following rules shall apply:
34(1) In any case where a taxpayer purchases or otherwise acquires
35all or any portion of the assets of an existing trade or business
36(irrespective of the form of entity) that is doing business in this
37state (within the meaning of Section 23101), the trade or business
38thereafter conducted
by the taxpayer (or any related person) shall
39not be treated as a new business if the aggregate fair market value
40of the acquired assets (including real, personal, tangible, and
P781 1intangible property) used by the taxpayer (or any related person)
2in the conduct of its trade or business exceeds 20 percent of the
3aggregate fair market value of the total assets of the trade or
4business being conducted by the taxpayer (or any related person).
5For purposes of this paragraph only, the following rules shall apply:
6(A) The determination of the relative fair market values of the
7acquired assets and the total assets shall be made as of the last day
8of the first taxable year in which the taxpayer (or any related
9person) first uses any of the acquired trade or business assets in
10its business activity.
11(B) Any acquired assets that constituted property described in
12Sectionbegin delete 1221(1)end deletebegin insert
1221(a)(1)end insert of the Internal Revenue Code in the
13hands of the transferor shall not be treated as assets acquired from
14an existing trade or business, unless those assets also constitute
15property described in Sectionbegin delete 1221(1)end deletebegin insert 1221(a)(1)end insert of the Internal
16Revenue Code in the hands of the acquiring taxpayer (or related
17person).
18(2) In any case where a taxpayer (or any related person) is
19engaged in one or more trade or business activities in this state, or
20has been engaged in one or more trade or business activities in this
21state within the preceding 36 months (“prior trade or business
22activity”), and thereafter commences an additional trade or business
23activity in this state, the additional trade or business activity shall
24
only be treated as a new business if the additional trade or business
25activity is classified under a different division of the Standard
26Industrial Classification (SIC) Manual published by the United
27States Office of Management and Budget, 1987 edition, than are
28any of the taxpayer’s (or any related person’s) current or prior
29trade or business activities.
30(3) Inbegin delete anyend deletebegin insert aend insert casebegin delete whereend deletebegin insert in whichend insert a taxpayer, including all related
31persons, is engaged in trade or business activities wholly outside
32of this state and the taxpayer first commences doing business in
33this state (within
the meaning of Section 23101) after December
3431, 1993 (other than by purchase or other acquisition described in
35paragraph (1)), the trade or business activity shall be treated as a
36new business under paragraph (2) of subdivision (e).
37(4) Inbegin delete anyend deletebegin insert aend insert casebegin delete whereend deletebegin insert in whichend insert the legal form under which a
38trade or business activity is being conducted is changed, the change
39in form shall be disregarded and the determination of whether the
40trade or business activity is a new business shall be made by
P782 1treating the taxpayer as having purchased or otherwise acquired
2all or any
portion of the assets of an existing trade or business
3under the rules of paragraph (1).
4(5) “Related person” shall mean any person that is related to
5the taxpayer under either Section 267 or 318 of the Internal
6Revenue Code.
7(6) “Acquire” shall include any transfer, whether or not for
8consideration.
9(7) (A) For taxable years beginning on or after January 1, 1997,
10the term “new business” shall include any taxpayer that is engaged
11in biopharmaceutical activities or other biotechnology activities
12that are described in Codes 2833 to 2836, inclusive, of the Standard
13Industrial Classification (SIC) Manual published by the United
14States Office of Management and Budget, 1987 edition, and as
15further amended, and that has not received regulatory approval for
16any product from the Food and Drug
Administration.
17(B) For purposes of this paragraph:
18(i) “Biopharmaceutical activities” means those activities that
19use organisms or materials derived from organisms, and their
20cellular, subcellular, or molecular components, in order to provide
21pharmaceutical products for human or animal therapeutics and
22diagnostics. Biopharmaceutical activities make use of living
23organisms to make commercial products, as opposed to
24pharmaceutical activities that make use of chemical compounds
25to produce commercial products.
26(ii) “Other biotechnology activities” means activities consisting
27of the application of recombinant DNA technology to produce
28commercial products, as well as activities regarding pharmaceutical
29delivery systems designed to provide a measure of control over
30the rate, duration, and site of pharmaceutical
delivery.
31(h) For purposes of corporations whose net income is determined
32under Chapter 17 (commencing with Section 25101), Section
3325108begin delete shall applyend deletebegin insert appliesend insert to each of the following:
34(1) The amount of net operating loss incurred in any taxable
35year that may be carried forward to another taxable year.
36(2) The amount of any loss carry forward that may be deducted
37in any taxable year.
38(i) The provisions of Section 172(b)(1)(D) of the Internal
39Revenue Code, relating to bad debt losses of commercial banks,
40begin delete shallend deletebegin insert
doend insert notbegin delete be applicableend deletebegin insert applyend insert.
P783 1(j) The Franchise Tax Board may prescribe appropriate
2regulations to carry out the purposes of this section, including any
3regulations necessary to prevent the avoidance of the purposes of
4this section through splitups, shell corporations, partnerships, tiered
5ownership structures, or otherwise.
6(k) The Franchise Tax Board may reclassify any net operating
7loss carryover determined under either paragraph (2) or (3) of
8subdivision (b) as a net operating loss carryover under paragraph
9(1) of subdivision (b) upon a showing that the reclassification is
10necessary to prevent evasion of the purposes of this section.
11(l) Except as otherwise provided, the amendments made by
12Chapter 107 of the Statutes of 2000begin delete shallend delete apply to net operating
13losses for taxable years beginning on or after January 1, 2000.
Section 24416.21 of the Revenue and Taxation Code
15 is amended to read:
(a) Notwithstanding Sections 24416, 24416.1,
1724416.2, 24416.4, 24416.5, 24416.6,begin delete 24416.7, and 24416.20end deletebegin insert and
1824416.7end insert of this code and Section 172 of the Internal Revenue Code,
19no net operating loss deduction shall be allowed for any taxable
20year beginning on or after January 1, 2008, and before January 1,
212012.
22(b) For any net operating loss or carryover of a net operating
23loss for which a deduction is denied by subdivision (a), the
24carryover period under Section 172 of the Internal Revenue Code
25shall be extended as follows:
26(1) By one year, for losses incurred in taxable years beginning
27on or after January 1, 2010, and before January 1, 2011.
28(2) By two years, for losses incurred in taxable years beginning
29on or after January 1, 2009, and before January 1, 2010.
30(3) By three years, for losses incurred in taxable years beginning
31on or after January 1, 2008, and before January 1, 2009.
32(4) By four years, for losses incurred in taxable years beginning
33before January 1, 2008.
34(c) Notwithstanding subdivision (a), a net operating loss
35deduction shall be allowed for carryback of a net operating loss
36attributable to a taxable year beginning on or after January 1, 2013.
37(d) The disallowance of any net
operating loss deduction for
38any taxable year beginning on or after January 1, 2008, and before
39January 1, 2010, pursuant to subdivision (a) shall not apply to a
P784 1taxpayer with income subject to tax under this part of less than
2five hundred thousand dollars ($500,000) for the taxable year.
3(e) (1) The disallowance of any net operating loss deduction
4for any taxable year beginning on or after January 1, 2010, and
5before January 1, 2012, pursuant to subdivision (a) shall not apply
6to a taxpayer with preapportioned income of less than three hundred
7thousand dollars ($300,000) for the taxable year.
8(2) For purposes of this subdivision, “preapportioned income”
9means net income after state adjustments, before the application
10of the apportionment and allocation provisions of this part.
11(3) For taxpayers
that are required to be included in a combined
12report under Section 25101 or authorized to be included in a
13combined report under Section 25101.15, the amount prescribed
14in paragraph (1) shall apply to the aggregate amount of
15preapportioned income for all members included in a combined
16report.
17(f) Notwithstanding subdivision (a), this section shall not apply
18to a taxpayer that ceased to do business or has a final taxable year
19ending prior to August 28, 2008, that sold or transferred
20substantially all of its assets resulting in a gain on sale during a
21taxable year ending prior to August 28, 2008, for which the gain
22could be offset with existing net operating loss deductions and the
23sale or transfer occurred pursuant to a plan of reorganization under
24Chapter 11 of Title 11 of the United States Code. An amended tax
25return claiming net operating loss deductions allowed pursuant to
26this subdivision shall be treated as a timely filed original
return.
27(g) The Legislature finds and declares that the addition of
28subdivision (f) to this section by the act adding this subdivision
29fulfills a statewide public purpose by providing necessary tax relief
30for a taxpayer that ceased to do business or has a final taxable year
31ending prior to August 28, 2008, that sold or transferred
32substantially all of its assets resulting in a gain or sale during a
33taxable year prior to August 28, 2008, for which the gain could be
34offset with existing net operating loss deductions and the sale or
35transfer occurred pursuant to a plan of reorganization under Chapter
3611 of Title 11 of the United States Code, in order to ensure that
37these taxpayers are not permanently denied the net operating loss
38deduction.
Section 24661.3 of the Revenue and Taxation Code,
2as added by Section 54 of Chapter 34 of the Statutes of 2002, is
3repealed.
(a) (1) The options under Sections 112(d)(2) and
5112(d)(3) of the Federal Agriculture Improvement and Reform
6Act of 1996 (7 U.S.C. Sec. 7212(d)(2) and (3)), as in effect on
7October 12, 1998, shall be disregarded in determining the taxable
8year for which any payment under a production flexibility contract
9under Subtitle B of Title I of that act (as so in effect) is properly
10includable in gross income for purposes of this part, Part 10
11(commencing with Section 17001), or Part 10.2 (commencing with
12Section
18401).
13(2) In order to provide farmers with the same tax treatment for
14all payments in years beginning before January 1, 2002, with
15respect to production flexibility contract payments as provided
16under federal law as modified by Public Law 105-277, this
17subdivision shall apply to taxable years ending after December
1831, 1995.
19(b) Any option to accelerate the receipt of any payment under
20a production flexibility contract entered into on or after January
211, 2002, that is payable under the Federal Agriculture Improvement
22and Reform Act of 1996 (7 U.S.C. Sec. 7200 et seq.) as in effect
23on December 17, 1999, shall be disregarded in determining the
24taxable year for which that payment is properly includable in gross
25income for purposes of this part, Part 10 (commencing with Section
2617001), or Part 10.2 (commencing with Section 18401).
Section 24685.5 of the Revenue and Taxation Code,
28as added by Section 56 of Chapter 34 of the Statutes of 2002, is
29repealed.
(a) The amendment made by Section 7001(a) of the
31Internal Revenue Service Restructuring and Reform Act of 1998
32(Public Law 105-206) to Section 404(a)(11) of the Internal
33Revenue Code, regarding determinations relating to deferred
34compensation, shall apply to taxable years beginning on or after
35January 1, 2002.
36(b) In the case of any taxpayer required by enactment of this
37section to change its method of accounting, for that taxpayer’s first
38taxable year beginning
on or after January 1, 2002, each of the
39following shall apply for purposes of this part, Part 10
P786 1(commencing with Section 17001), and Part 10.2 (commencing
2with Section 18401):
3(1) The change shall be treated as initiated by the taxpayer.
4(2) The change shall be treated as made with the consent of the
5Franchise Tax Board.
6(3) The net amount of the adjustments required to be taken into
7account by the taxpayer under Chapter 13 (commencing with
8Section 24631) shall be taken into account ratably over the
9three-taxable-year period beginning with that taxpayer’s first
10taxable year beginning on or after January 1, 2002.
Section 24989 of the Revenue and Taxation Code
12 is repealed.
Section 1056 of the Internal Revenue Code, relating to
14basis limitation for player contracts transferred in connection with
15the sale of a franchise, shall apply, except as otherwise provided.
Section 32432 of the Revenue and Taxation Code,
17as added by Section 24 of Chapter 929 of the Statutes of 1999, is
18amended and renumbered to read:
(a) Notwithstanding any other provision of this part,
21if the board finds that neither the person liable for payment of tax
22nor any party related to that person has in any way caused an
23erroneous refund for which an action for recovery is provided
24under Section 32431, no interest shall be imposed on the amount
25of that erroneous refund until 30 days after the date on which the
26board mails a notice of determination for repayment of the
27erroneous refund to the person. The act of filing a claim for refund
28shall not be considered as causing the erroneous refund.
29(b) This section shall be operative for any action for recovery
30under Section 32431 on or after January 1, 2000.
Section 40069 of the Revenue and Taxation Code,
32as added by Section 18 of Chapter 459 of the Statutes of 2002, is
33amended and renumbered to read:
(a) Any return, declaration, statement, or other
36document required to be made under this part that is filed using
37electronic media shall be filed and authenticated pursuant to any
38method or form the board may prescribe.
39(b) Notwithstanding any other law, any return, declaration,
40statement, or other document otherwise required to be signed that
P787 1is filed by the taxpayer using electronic media in a form as required
2by the board shall be deemed to be a signed, valid original
3document, including upon reproduction to paper form by the
board.
4(c) Electronic media includes, but is not limited to, computer
5modem, magnetic media, optical disk, facsimile machine, or
6telephone.
Section 45752 of the Revenue and Taxation Code,
8as added by Section 41 of Chapter 609 of the Statutes of 1998, is
9amended and renumbered to read:
In any action brought pursuant to subdivision (a) of
12Section 45751, the court may, with the consent of the Attorney
13General, order a change in the place of trial.
Section 55262 of the Revenue and Taxation Code,
15as added by Section 76 of Chapter 929 of the Statutes of 1999, is
16amended and renumbered to read:
(a) Notwithstanding any other provision of this part,
19if the board finds that neither the person liable for payment of fees
20nor any party related to that person has in any way caused an
21erroneous refund for which an action for recovery is provided
22under Section 55261, no interest shall be imposed on the amount
23of that erroneous refund until 30 days after the date on which the
24board mails a notice of determination for repayment of the
25erroneous refund to the person. The act of filing a claim for refund
26shall not be considered as causing the erroneous refund.
27(b) This section shall be operative for any action for recovery
28under Section 55261 on or after January 1, 2000.
The heading of Article 6.5 (commencing with
30Section 217) of Chapter 1 of Division 1 of the Streets and
31Highways Code is repealed.
32
Section 2192 of the Streets and Highways Code is
37amended to read:
(a) The Trade Corridors Improvement Fund, created
39pursuant to subdivision (c) of Section 8879.23 of the Government
40Code, is hereby continued in existence to receive revenues from
P788 1sources other than the Highway Safety, Traffic Reduction, Air
2Quality, and Port Security Bond Act of 2006. This chapter shall
3govern expenditure of those other revenues.
4(b) The moneys in the fund from those other sources shall be
5available upon appropriation for allocation by the California
6Transportation Commission for infrastructure improvements in
7this state on federally designated Trade Corridors of National and
8Regional Significance, on the Primary Freight Network, and along
9other corridors that have a high volume of freight movement, as
10determined by the commission. In determining the
projects eligible
11for funding, the commission shall consult thebegin delete stateend delete
Transportation
12Agency’s state freight plan as described in Section 13978.8 of the
13Government Code, the State Air Resources Board’s Sustainable
14Freight Strategy adopted by Resolution 14-2, and the trade
15infrastructure and goods movement plan submitted to the
16commission by the Secretary of Transportation and the Secretary
17begin delete ofend deletebegin insert forend insert Environmental Protectionbegin delete Agencyend delete. The commission shall
18also consult trade infrastructure and goods movement plans adopted
19by regional transportation planning agencies, adopted regional
20transportation plans required by state and federal law, and the
21statewide port master plan prepared by the California Marine and
22Intermodal Transportation System Advisory Council
23(Cal-MITSAC) pursuant to Section 1730 of
the Harbors and
24Navigation Code, when determining eligible projects for funding.
25Eligible projects for these funds include, but are not limited to, all
26of the following:
27(1) Highway capacity improvements and operational
28improvements to more efficiently accommodate the movement of
29freight, particularly for ingress and egress to and from the state’s
30land ports of entry and seaports, including navigable inland
31waterways used to transport freight between seaports, land ports
32of entry, and airports, and to relieve traffic congestion along major
33trade or goods movement corridors.
34(2) Freight rail system improvements to enhance the ability to
35move goods from seaports, land ports of entry, and airports to
36warehousing and distribution centers throughout California,
37including projects that separate rail lines from highway or local
38road traffic, improve freight rail mobility through
mountainous
39regions, relocate rail switching yards, and other projects that
40improve the efficiency and capacity of the rail freight system.
P789 1(3) Projects to enhance the capacity and efficiency of ports.
2(4) Truck corridor improvements, including dedicated truck
3facilities or truck toll facilities.
4(5) Border access improvements that enhance goods movement
5between California and Mexico and that maximize the state’s
6ability to access coordinated border infrastructure funds made
7available to the state by federal law.
8(6) Surface transportation and connector road improvements to
9effectively facilitate the movement of goods, particularly for
10ingress and egress to and from the state’s land ports of entry,
11airports, and seaports, to relieve traffic congestion
along major
12trade or goods movement corridors.
13(c) (1) The commission shall allocate funds for trade
14infrastructure improvements from the fund consistent with Section
158879.52 of the Government Code and the Trade Corridors
16Improvement Fund (TCIF) Guidelines adopted by the commission
17on November 27, 2007, or as amended by the commission, and in
18a manner that (A) addresses the state’s most urgent needs, (B)
19balances the demands of various land ports of entry, seaports, and
20airports, (C) provides reasonable geographic balance between the
21state’s regions, and (D) places emphasis on projects that improve
22trade corridor mobility while reducing emissions of diesel
23particulate and other pollutant emissions.
24(2) In addition, the commission shall also consider the following
25factors when allocating these funds:
26(A) “Velocity,” which means the speed by which large cargo
27would travel from the land port of entry or seaport through the
28distribution system.
29(B) “Throughput,” which means the volume of cargo that would
30move from the land port of entry or seaport through the distribution
31system.
32(C) “Reliability,” which means a reasonably consistent and
33predictable amount of time for cargo to travel from one point to
34another on any given day or at any given time in California.
35(D) “Congestion reduction,” which means the reduction in
36recurrent daily hours of delay to be achieved.
The heading of Division 6 (commencing with
38Section 4000) of the Streets and Highways Code is repealed.
39
Section 5132.1 of the Streets and Highways Code,
2as amended by Chapter 416 of the Statutes of 1963, is amended
3and renumbered to read:
In the event that
begin insert(a)end insertbegin insert end insertbegin insertIf end insertthe proceedings include any acquisition and
6the actual cost of the acquisition as finally determined is less than
7the amount included in the assessment as the cost ofbegin delete suchend deletebegin insert theend insert
8 acquisition,begin delete suchend deletebegin insert theend insert
excess may be spent as the legislative body
9may thereafter determine, either for the maintenance or repair of
10the work or improvement, orbegin delete suchend deletebegin insert theend insert excess shall be refunded or
11credited in proportion to the amount of the assessments that were
12levied forbegin delete suchend deletebegin insert theend insert acquisition cost, as follows:
13(a) Where
end delete
14begin insert(1)end insertbegin insert end insertbegin insertIf end insertthe assessment and all installments thereof and all interest
15and penalties due thereon have been paid,begin delete suchend deletebegin insert theend insert refund shall be
16returned in cash to the person who paid the corresponding
17assessment or installment, uponbegin delete hisend delete furnishing satisfactory evidence
18ofbegin delete suchend deletebegin insert theend insert payment.
19(b) Where
end delete
20begin insert(2)end insertbegin insert end insertbegin insertIf end insertthe assessment or any installment thereof is unpaid, the
21credit shall be applied uponbegin delete suchend deletebegin insert theend insert assessment or upon the earliest
22unpaid installment of principal and interest.
23In the event
end delete
24begin insert(b)end insertbegin insert end insertbegin insertIfend insert the legislative body determines thatbegin delete suchend deletebegin insert
theend insert excess shall
25be used for maintenance or repair, the legislative body shall
26establish a separate fund ofbegin delete suchend deletebegin insert theend insert excess and shall usebegin delete the sameend delete
27begin insert itend insert solely forbegin delete saidend deletebegin insert thatend insert purpose.
Section 125.4 of the Unemployment Insurance Code
29 is amended to read:
“American employer” means any of the following:
31(a) An individual who is a resident of the United States.
32(b) A partnership, if two-thirds or more of the partners are
33residents of the United States.
34(c) A trust, if all of the trustees are residents of the United States.
35(d) A corporation organized under the laws of the United States
36or of any state.
37(e) A limited liability company organized under the laws of the
38United States or of any state.
39(f) begin deleteAny end deletebegin insertAn end insertIndian tribe as described bybegin delete subsection (u) ofend delete Section
403306begin insert(u)end insert
of Title 26 of the United States Code.
Section 135 of the Unemployment Insurance Code
2 is amended to read:
(a) “Employing unit” meansbegin delete anyend deletebegin insert anend insert individual or type of
4organization that has in its employ one or more individuals
5performing services for it within this state, and includes but is not
6limited to, the following individuals and organizations:
7(1) begin deleteAny end deletebegin insertAn end insertindividual or type of organization or public entity
8that elects coverage pursuant to any provision
of this division.
9(2) begin deleteAny end deletebegin insertA end insertjoint venture, partnership, association, trust, estate,
10joint stock company, insurance company, corporation whether
11domestic or foreign, limited liability company, whether domestic
12or foreign, community chest, fund, or foundation.
13(3) begin deleteAny end deletebegin insertA end insertpublic entity. As used in this section, “public entity”
14means the State of California (including the Trustees of the
15California State University),begin delete anyend deletebegin insert
anend insert instrumentality of this state
16(including the Regents of the University of California),begin delete anyend deletebegin insert aend insert
17 political subdivision of this state or any of its instrumentalities, a
18county, city, district (including the governing board ofbegin delete anyend deletebegin insert aend insert school
19district or community college district,begin delete anyend deletebegin insert aend insert county board of
20education,begin delete anyend deletebegin insert
aend insert county superintendent of schools, orbegin delete anyend deletebegin insert aend insert
21 personnel commission of a school district or community college
22district that has a merit system pursuant tobegin delete any provision ofend delete the
23Education Code), entities receiving state money to conduct county
24fairs and agricultural fairs pursuant to Sections 25905 and 25906
25of the Government Code and that perform no other functions,begin delete anyend delete
26begin insert aend insert public authority, public agency, or public corporation of this
27state,begin delete anyend deletebegin insert
anend insert instrumentality of more than one of the foregoing,
28andbegin delete anyend deletebegin insert anend insert instrumentality of any of the foregoing and one or more
29other states or political subdivisions.
30(4) begin deleteAny end deletebegin insertAn end insertinstrumentality of the United States required to make
31payments under this division.
32(5) The receiver, trustee in bankruptcy, trustee or successor
33thereof, and the legal representative of a deceased person.
34(6) begin deleteAny end deletebegin insertAn
end insertIndian tribe as described bybegin delete subsection (u) ofend delete Section
353306begin insert(u)end insert of Title 26 of the United States Code.
36(b) All individuals performing services within this state forbegin delete anyend delete
37begin insert anend insert employing unit that maintains two or more separate
38establishments within this state shall be deemed to be employed
39by a single employing unit for all the purposes of this division.
40This subdivision does not apply tobegin delete anyend deletebegin insert
anend insert Indian tribe (as described
P792 1bybegin delete subsection (u) ofend delete Section 3306begin insert(u)end insert
of Title 26 of the United
2States Code) and the subdivisions, subsidiaries, or other business
3enterprises wholly owned by the Indian tribe if the tribe chooses
4to treat those subdivisions, subsidiaries, or other business
5enterprises as separate business entities for the purposes of Section
6803.
Section 605 of the Unemployment Insurance Code
8 is amended to read:
(a) Except as provided by Section 634.5, “employment”
10for the purposes of this part and Parts 3 (commencing with Section
113501) and 4 (commencing with Section 4001) includes all service
12performed by an individual (including blind and otherwise disabled
13individuals) for any public entity or Indian tribe, if the service is
14excluded from “employment” under thebegin delete federalend deletebegin insert Federalend insert
15 Unemployment Tax Act solely by reason ofbegin delete paragraph (7) ofend delete
16 Section 3306(c)begin insert(7)end insert
ofbegin delete that act.end deletebegin insert
Title 26 of the United States Code.end insert
17(b) For purposes of this section:
18(1) “Public entity” means the State of California (including the
19Trustees of the California State University and Colleges, and the
20California Industries for the Blind),begin delete anyend deletebegin insert anend insert instrumentality of this
21state (including the Regents of the University of California),begin delete anyend delete
22begin insert aend insert political subdivision of this state or any of its instrumentalities,
23a county, city, district (including the governing board ofbegin delete anyend deletebegin insert
aend insert
24 school district or community college district,begin delete anyend deletebegin insert aend insert county board
25of education,begin delete anyend deletebegin insert aend insert county superintendent of schools, orbegin delete anyend deletebegin insert aend insert
26 personnel commission of a school district or community college
27district that has a merit system pursuant tobegin delete any provision ofend delete the
28Education Code), entities conducting fairs as identified in
Sections
2919418 to 19418.3, inclusive, of the Business and Professions Code,
30begin delete anyend deletebegin insert aend insert public authority, public agency, or public corporation of this
31state,begin delete anyend deletebegin insert anend insert instrumentality of more than one of the foregoing,
32andbegin delete anyend deletebegin insert anend insert instrumentality of any of the foregoing and one or more
33other states or political subdivisions.
34(2) “Indian tribe” meansbegin delete anyend deletebegin insert
anend insert Indian tribe described by
35begin delete subsection (u) ofend delete Section 3306begin insert(u)end insert of Title 26 of the United States
36Code.
Section 634.5 of the Unemployment Insurance Code
38 is amended to read:
Notwithstanding any other provision of law,begin delete noend deletebegin insert aend insert
40 provision excluding service from “employment”begin delete shallend deletebegin insert does notend insert
P793 1 apply tobegin delete anyend deletebegin insert anend insert entity defined by Section 605 or tobegin delete anyend deletebegin insert
aend insert nonprofit
2organization described by Section 608, except as provided by this
3section. With respect tobegin delete anyend deletebegin insert anend insert entity defined by Section 605 or
4begin delete anyend deletebegin insert aend insert nonprofit organization described by Section 608,
5“employment” does not include service excluded under Sections
6629, 631, 635, and 639 to 648, inclusive, or service performed in
7any of the following:
8(a) In the employ of either of the following:
9(1) A church or convention or association of churches.
10(2) An organizationbegin delete whichend deletebegin insert thatend insert is operated primarily for religious
11purposes and which is operated, supervised, controlled, or
12principally supported by a church or convention or association of
13churches.
14(b) By a duly ordained, commissioned, or licensed minister of
15a church in the exercise of his or her ministry or by a member of
16a religious order in the exercise of duties required by the order.
17(c) In the employ ofbegin delete anyend deletebegin insert anend insert entity defined by
Section 605, if
18the service is performed by an individual in the exercise of his or
19her duties as any of the following:
20(1) An elected official.
21(2) A member of a legislative body or a member of the judiciary
22of a state or a political subdivision of a state.
23(3) A member of the tribal council of an Indian tribe as described
24bybegin delete subsection (u) ofend delete Section 3306begin insert(u)end insert of Title 26 of the United
25States Code.
26(4) A member of a State National Guard or Air National Guard.
27(5) An employee serving on a temporary
basis in case of fire,
28storm, snow, earthquake, flood, or other similar emergency.
29(6) An employee in a position that, under or pursuant to state
30or tribal law, is designated as either of the following:
31(A) A major nontenured policymaking or advisory position.
32(B) A policymaking or advisory position, the performance of
33the duties of which ordinarily does not require more than eight
34hours per week.
35(7) (A) Except as otherwise provided in subparagraph (B), an
36election official or election worker if the amount of remuneration
37reasonably expected to be received by the individual during the
38calendar year for services as an election official or election worker
39is less than one thousand dollars ($1,000).
P794 1(B) This paragraph shall not take effect unless and until the
2service is excluded from service to whichbegin delete paragraph (1) of begin insert end insertSection 3309begin insert(a)(1)end insert
of Title 26 of the United
3subdivision (a) of end delete
4States Code applies by reason of exemption underbegin delete subdivision (b) Section 3309begin insert(b)end insert of that act.
5ofend delete
6(d) By an individual receiving rehabilitation or remunerative
7work in a facility conducted for the purpose of carrying out a
8program of either:
9(1) Rehabilitation for individuals whose earning capacity is
10impaired by age or physical or mental deficiency or injury.
11(2) Providing remunerative work for individuals who because
12of their impaired physical or mental capacity cannot be readily
13absorbed in the competitive labor market.
14(e) By an individual receiving work relief or work training as
15part of an unemployment work relief or work training program
16assisted or financed in whole or in part by any of the following:
17(1) A federal agency.
18(2) An agency of a state or a political subdivision thereof.
19(3) An Indian tribe, as described bybegin delete subsection (u) ofend delete Section
203306begin insert(u)end insert of Title 26 of the United States Code.
21(f) By a ward or an inmate of a custodial or penal institution
22pursuant to Article 1 (commencing with Section 2700), Article 4
23(commencing with Section 2760), and Article 5
(commencing with
24Section 2780) of Chapter 5 of, and Article 1 (commencing with
25Section 2800) of Chapter 6 of, Title 1 of Part 3 of the Penal Code,
26Section 4649 and Chapter 1 (commencing with Section 4951) of
27Part 4 of Division 4 of the Public Resources Code, and Sections
28883, 884, and 1768 of the Welfare and Institutions Code.
29(g) By an individual under the age of 18 years in the delivery
30or distribution of newspapers or shopping news, not including
31delivery or distribution to any point for subsequent delivery or
32distribution.
33(h) By an individual in the sale of newspapers or magazines to
34ultimate consumers, under an arrangement that includes the
35following conditions:
36(1) The newspapers or magazines are to be sold by the individual
37at a fixed price.
38(2) The individual’s compensation is based on retention of the
39excess of the price over the amount at which the newspapers or
40magazines are charged to the individual, whether or not he or she
P795 1is guaranteed a minimum amount of compensation for the service
2or is entitled to be credited with the unsold newspapers or
3magazines that he or she returns.
4(i) (1) Except as otherwise provided in paragraph (2), as a
5substitute employee whose employment does not increase the size
6of the employer’s normal workforce, whose employment is
7required by law, and whose employment as a substitute employee
8does not occur on more than 60 days during the base period.
9(2) This subdivision shall not take effect unless and until the
10United States Secretary of Labor, or his or her designee, finds that
11this subdivision is in conformity with federal requirements.
12(j) As a participant in a national service program carried out
13using assistance provided under Section 12571 of Title 42 of the
14United States Code.
Section 710.6 of the Unemployment Insurance Code
16 is amended to read:
(a) Notwithstanding Section 709,begin delete anyend deletebegin insert anend insert Indian tribe
18as described bybegin delete subsection (u) ofend delete Section 3306begin insert(u)end insert of Title 26 of
19the United States Code, includingbegin delete thoseend delete tribes not covered by the
20Tribal-State Gaming Compact, may elect to become an employer
21subject to Part 2 (commencing with Section 2601) with respect to
22all employees who meet
either of the following conditions:
23(1) Are employed in one or more distinct establishments or
24places of business.
25(2) Are a part of an employee bargaining unit provided the
26election is the result of a negotiated agreement between the Indian
27tribe and the recognized employee organization. The Indian tribe
28also may elect to provide coverage to its management and
29confidential employees and to its employees who are not a part of
30an employee bargaining unit, but the election by the bargaining
31unit shall not be contingent upon coverage of other employees of
32the Indian tribe.
33(b) Upon filing of an election, the filing entity shall, upon
34approval by the director, become an employer subject to Part 2
35(commencing with Section 2601) to the same extent as other
36employers, and services performed by its employees who are
37subject
to an election under this section shall constitute
38employment subject to that part. Sections 986 and 2903 apply to
39an employer making an election pursuant to this section.
P796 1(c) This section does not affect the requirement that Indian tribes
2covered by the Tribal-State Gaming Compact be subject to Part 2
3(commencing with Section 2601).
Section 802 of the Unemployment Insurance Code
5 is amended to read:
(a) The State of California, any other public entity (as
7defined by Section 605), or any Indian tribe as described by
8begin delete subsection (u) ofend delete Section 3306begin insert(u)end insert of Title 26 of the United States
9Code, or any subdivision, subsidiary, or business enterprise wholly
10owned by that Indian tribe, for which services are performed that
11do constitute employment under Section 605 may, in lieu of the
12contributions required of employers, elect to finance its liability
13for unemployment compensation benefits, extended duration
14benefits, and federal-state extended benefits with respect to those
15services by any method of
financing coverage that is permitted
16under Section 803.
17(b) begin deleteAny end deletebegin insertAn end insertelection under Section 803 for financing coverage
18under this section shall take effect with respect to services
19performed from and after the first day of the calendar quarter in
20which the election is filed with the director, and shall continue in
21effect for not less than two full calendar years, unless the election
22isbegin delete cancelledend deletebegin insert canceledend insert by the director pursuant to paragraph (2) of
23subdivision (g) of Section 803. Thereafter the election under
24Section 803 may be terminated as of January 1 of any calendar
25
year only if the state or other public entity or Indian tribe, on or
26before the 31st day of January of that year, has filed with the
27director a written application for termination. The director may
28for good cause waive the requirement that a written application
29for termination shall be filed on or before the 31st day of January.
30begin delete In no event shall financingend deletebegin insert Financingend insert coverage by an election
31under Section 803begin delete beend deletebegin insert is notend insert validbegin delete thatend deletebegin insert if itend insert would
establish any
32different method of financing coverage for any calendar quarter
33where an election for coverage has also been made by the state or
34other public entity or Indian tribe under any provision of Article
354 (commencing with Section 701) of this chapter.
36(c) The director may require from the state and other public
37entity and Indian tribe, includingbegin delete anyend deletebegin insert anend insert agent thereof,begin delete suchend delete
38 employment, financial, statistical, or other information and reports,
39properly verified, as may be deemed necessary by the director to
40carry out his or her duties under this division, which shall be filed
P797 1with the director at the time and in the manner prescribed by him
2or her.
3(d) The director may tabulate and publish information obtained
4pursuant to this section in statistical form and may divulge the
5name of the state or other public entity or Indian tribe.
6(e) The state and other public entity and Indian tribe, including
7begin delete anyend deletebegin insert anend insert agent thereof, shall keep any work records as may be
8prescribed by the director for the proper administration of this
9division.
10(f) Except as inconsistent with the provisions of this section,
11the provisions of this division and authorized regulations apply to
12any matter arising pursuant to this section.
Section 803 of the Unemployment Insurance Code
14 is amended to read:
(a) As used in this section, “entity” meansbegin delete anyend deletebegin insert anend insert
16 employing unit that is authorized bybegin delete any provision ofend delete Article 4
17(commencing with Section 701) or by Section 801 or 802 to elect
18a method of financing coverage permitted by this section.
19(b) In lieu of the contributions required of employers, an entity
20may elect any one of the following:
21(1) To pay into the Unemployment Fund the cost of benefits,
22including extended duration benefits
and federal-state extended
23benefits, paid based on base period wages with respect to
24employment for the entity and charged to its account in the manner
25provided by Section 1026, pursuant to authorized regulations that
26shall prescribe the rate or amount, time, manner, and method of
27payment or advance payment or providing a good and sufficient
28bond to guarantee payment of contributions.
29(2) Two or more entities may, pursuant to authorized regulations,
30file an application with the director for the establishment of a joint
31account for the purpose of determining the rate of contributions
32they shall pay into the Unemployment Fund to reimburse the fund
33for benefits paid with respect to employment for those entities.
34The members of the joint account may share the cost of benefits,
35including extended duration benefits and federal-state extended
36benefits, paid based on the base period wages with respect to
37employment for those members and charged to the
joint account
38in the manner provided by Section 1026. The director shall
39prescribe authorized regulations for the establishment, maintenance,
40and dissolution of joint accounts, and for the rate or amount, time,
P798 1manner, and method of payment or advance payment or providing
2a good and sufficient bond to guarantee payment of contributions
3by the members of joint accounts, on the cost of benefits charged
4in the manner provided by Section 1026.
5(c) Sections 1030, 1031, 1032, and 1032.5, and any provision
6of this division for the noncharging of benefits to the account of
7an employer,begin delete shallend deletebegin insert doend insert not apply to an election under subdivision
8(b). The cost of benefits charged to an entity under this section
9shall include, but not be limited to, benefits or payments
improperly
10paid in excess of a weekly benefit amount, or in excess of a
11maximum benefit amount, or otherwise in excess of the amount
12that should have been paid, due to any computational or other error
13of any type by the Employment Development Department or the
14Department of Benefit Payments, whether or not the error could
15be anticipated.
16(d) The cost of benefits charged to an entity under this section
17shall include credits of benefit overpayments actually collected by
18the department, unless the department determines that the payment
19was made because the entity, or an agent of the entity, was at fault
20for failing to respond timely or adequately to requests of the
21department for information relating to the individual claim for
22unemployment compensation benefits. The department shall make
23this determination when the entity or agent fails to respond timely
24or adequately in two instances relating to the individual claim for
25unemployment compensation
benefits. This subdivision shall apply
26to benefit overpayments established on or after October 22, 2013.
27(e) In making the payments prescribed by subdivision (b), there
28shall be paid or credited to the Unemployment Fund, either in
29advance or by way of reimbursement, as may be determined by
30the director, any sums he or she estimates the Unemployment Fund
31will be entitled to receive from each entity for each calendar
32quarter, reduced or increased by any sum by which he or she finds
33that his or her estimates for any prior calendar quarter were greater
34or less than the amounts which should have been paid to the fund.
35The estimates may be made upon the basis of statistical sampling,
36or any other method as may be determined by the director.
37Upon making that determination, the director shall give notice
38of the determination, pursuant to Section 1206, to the entity. The
39director may cancel any contributions or
portion thereof that he
40or she finds has been erroneously determined.
P799 1The director shall charge to any special fund, that is responsible
2for the salary of any employee of an entity, the amount determined
3by the director for which the fund is liable pursuant to this section.
4The contributions due from the entity shall be paid from the liable
5special fund, the General Fund, or other liable fund to the
6Unemployment Fund by the Controller or other officer or person
7responsible for disbursements on behalf of the entity within 30
8days of the date of mailing of the director’s notice of determination
9to the entity. The director for good cause may extend for not to
10exceed 60 days the time for paying without penalty the amount
11determined and required to be paid. Contributions are due upon
12the date of mailing of the notice of determination and are
13delinquent if not paid on or before the 30th day following the date
14of mailing of the notice.
15(f) begin deleteAny end deletebegin insertAn end insertentity that fails to pay the contributions required
16within the time required shall be liable for interest on the
17contributions at the adjusted annual rate and by the method
18established pursuant to Section 19521 of the Revenue and Taxation
19Code from and after the date of delinquency until paid, andbegin delete anyend delete
20begin insert anend insert entity that without good cause fails to paybegin delete anyend delete contributions
21required within the time required shall pay a penalty of 10 percent
22of the amount of the contributions. If the
entity fails to pay the
23contributions required on or before the delinquency date, the
24director may assess the entity for the amount required by the notice
25of determination. This subdivisionbegin delete shallend deletebegin insert doesend insert not apply to
26employers electing financing under Section 821, for amounts due
27after December 31, 1992.
28(g) Article 8 (commencing with Section 1126) of Chapter 4 of
29Part 1begin insert,end insert with respect to the assessment of contributions, and Chapter
307 (commencing with Section 1701) of Part 1begin insert,end insert with respect to the
31collection of contributions,begin delete shallend delete
apply to the assessments provided
32by this section. Sections 1177 to 1184, inclusive, relating to refunds
33and overpayments,begin delete shallend delete apply to amounts paid to the
34Unemployment Fund pursuant to this section. Sections 1222, 1223,
351224, 1241, and 1242begin delete shallend delete apply to matters arising under this
36section.
37(h) (1) The director may terminate the election ofbegin delete anyend deletebegin insert anend insert entity
38for financing under this section if the entity is delinquent in the
39payment of advances or reimbursements required by the director
40under this section. Afterbegin delete anyend deletebegin insert
aend insert terminationbegin insert,end insert the entity may again
P800 1make an election pursuant to this sectionbegin insert,end insert but only if it is not
2delinquent in the payment of contributions and not delinquent in
3the payment of advances or reimbursements required by the director
4under this section.
5(2) In the case of an Indian tribe (as described bybegin delete subsection (u) Section 3306begin insert(u)end insert of Title 26 of the United States Code), the
6ofend delete
7director shall terminate all elections for the tribe and all
8subdivisions, subsidiaries, and business enterprises wholly owned
9
by that tribe if the tribe or any subdivision, subsidiary, or business
10enterprise wholly owned by that tribe is more than 90 days
11delinquent in the payment of contributions, bonds, advances,
12reimbursements, or applicable penalties or interest required under
13this code, after notice to the tribe. Afterbegin delete anyend deletebegin insert aend insert terminationbegin insert,end insert the
14Indian tribe may again make an election pursuant to this sectionbegin insert,end insert
15 but only if it is not delinquent in the payment of contributions,
16bonds, advances, reimbursements, or applicable penalties or interest
17required under this code.
18(i) Notwithstanding any other provision of this section,begin delete noend deletebegin insert anend insert
19 entity shallbegin insert notend insert be liable for that portion of any extended duration
20benefits or federal-state extended benefits that is reimbursed or
21reimbursable by the federal government to the State of California.
22(j) After the termination ofbegin delete anyend deletebegin insert anend insert election under this section,
23the entity shall remain liable for its proportionate share of the cost
24of benefits paid and charged to its account in the
manner provided
25by Section 1026, which are based on wages paid for services during
26the period of the election. That liability may be charged against
27any remaining balance of a prior reserve account used by the entity
28pursuant to Section 712 or 713. Any portion of the remaining
29balance shall be included in the reserve account of the entity
30followingbegin delete anyend deletebegin insert aend insert termination of an election under this section which
31occurs prior to the expiration of a period of three consecutive years
32commencing with the effective date of the election. For purposes
33of Section 982, the period of an election under Section 803 shall,
34to the extent permitted by federal law, be included as a period
35during which a reserve account has been subject to benefit charges.
Section 804 of the Unemployment Insurance Code
37 is amended to read:
The director shall notify the United States Internal
39Revenue Service and the United States Department of Labor of
40the failure of any Indian tribe (as described bybegin delete subsection (u) ofend delete
P801 1 Section 3306begin insert(u)end insert of Title 26 of the United States Code) to make a
2payment or post a bond as required under subdivision (b) of Section
3803 within 90 days of the delinquency date of a notice to the tribe
4specifying the amount due under that subdivision. If the amount
5due is subsequently paid by the Indian tribe, the director shall
6notify the United States Internal Revenue Service and the United
7States Department of Labor of the satisfaction of the
liability.
Section 1086 of the Unemployment Insurance Code
9 is amended to read:
(a) Each employing unit within 15 days after becoming
11an employer as defined in this part shall register with the
12department on a form prescribed by the department.
13(b) (1) Notwithstanding subdivision (a),begin delete anyend deletebegin insert anend insert Indian tribe (as
14described bybegin delete subsection (u) ofend delete Section 3306begin insert(u)end insert of Title 26 of the
15United States Code) that employed
one or more workers on or
16after December 21, 2000, and prior to the operative date of the
17statute adding this subdivision at the 2001 portion of the 2001-02
18Regular Session of the Legislature that has not registered with the
19department by the operative date of the statute, shall register with
20the department within 15 days of that operative date.
21(2) The subject date for employers who register with the
22department under the provisions of paragraph (1) shall be
23December 21, 2000, or the date that employer first hired an
24employee, whichever is later.
Section 1119 of the Unemployment Insurance Code
26 is amended to read:
The director shall notify the United States Internal
28Revenue Service and the United States Department of Labor of
29the failure ofbegin delete anyend deletebegin insert anend insert Indian tribe (as described bybegin delete subsection (u) Section 3306begin insert(u)end insert of Title 26 of the United States Code) to make
30ofend delete
31a payment ofbegin delete anyend deletebegin insert anend insert
amount required to be paid under this article
32within 90 days of the date of a notice specifying the amount due.
33If the amount due is subsequently paid by the Indian tribe, the
34director shall notify the United States Internal Revenue Service
35and the United States Department of Labor of the satisfaction of
36the liability.
Section 1128.1 of the Unemployment Insurance
38Code is amended to read:
(a) If the director finds that an individual or business
40entity has exchanged money on behalf of an employer and the
P802 1employer used the cash proceeds from the exchange to conceal
2the payment of wages with an intent to evadebegin delete anyend deletebegin insert aend insert provision of
3this code, the director shall assess a penalty against the individual
4or business entity in an amount equal to 100 percent of any assessed
5contributions that were based on the concealed wages. An
6employing unit subject to a penalty under Section 1128 shall not
7be assessed a penalty under this section for the same violation.
8(b) For purposes of this section, “business entity” means a
9partnership, corporation, association, limited liability company,
10or Indian tribe (as described bybegin delete subsection (u) ofend delete
Section 3306begin insert(u)end insert
11 of Title 26 of the United States Code).
12(c) The penaltybegin delete shall applyend deletebegin insert appliesend insert only when there is evidence
13that the individual or business entity who exchanged money knew
14that the employer intended to use the cash proceeds from the
15exchange to conceal the payment of wages and thereby avoid the
16payment of contributions or taxes required by this code.
Section 1141.1 of the Unemployment Insurance
18Code is amended to read:
The director shall notify the United States Internal
20Revenue Service and the United States Department of Labor of
21the failure ofbegin delete anyend deletebegin insert anend insert Indian tribe (as described bybegin delete subsection (u) Section 3306begin insert(u)end insert of Title 26 of the United States Code) to pay
22ofend delete
23within 90 days of the final date of an assessment any amounts
24assessed pursuant to the provisions of this article. If the assessment
25is subsequently paid by the Indian tribe, the director
shall notify
26the United States Internal Revenue Service and the United States
27Department of Labor of the satisfaction of the liability.
Section 1145 of the Unemployment Insurance Code
29 is amended to read:
(a) If the director finds that a person or business entity
31knowingly advises another person or business entity to violate any
32provision of this chapter, the director may assess the greater of:
33(1) A penalty of five thousand dollars ($5,000).
34(2) Ten percent of the combined amount of any resulting
35underreporting of contribution, penalties, or interest required by
36law.
37(b) For purposes of this section, “business entity” means a
38partnership, corporation, association, limited liability company,
39or Indian tribe, as described inbegin delete subsection (u) ofend delete
Section 3306begin insert(u)end insert
40
of Title 26 of the United States Code, or any other legal entity.
Section 1253.92 of the Unemployment Insurance
2Code is amended to read:
(a) An unemployed individual whobegin delete is meetingend deletebegin insert meetsend insert
4 all of the requirements under this division, including Section
51253.9, andbegin delete is certifyingend deletebegin insert certifiesend insert for continued unemployment
6compensation benefits shall not be scheduled for a determination
7of eligibility for a week in which the individual commenced or is
8participating in a training or education program and has notified
9the department of the training or education program.
10(b) If the department determines that the commencement of, or
11the ongoing participation in, a training or education program
12conflicts with the eligibility requirements for unemployment
13compensation under this division, the department may schedule
14and conduct a determination of eligibility.
Section 1326.5 of the Unemployment Insurance
16Code is amended to read:
An individual shall, to maintain his or her eligibility
18to file continued claims during a continuous period of
19unemployment, submit a continued claim not more than 14 days
20from the end of the lastbegin delete weekend deletebegin insert week’send insert ending datebegin delete showingend deletebegin insert shownend insert
21 on the continued claim, or not more than 14 days from the date
22the department issued that continued claim, whichever is later,
23unless the department finds good cause for the individual’s delay
24in submitting the continued claim. An unemployed
individual may
25not be disqualified for unemployment compensation benefits solely
26on the basis that the continued claim was submitted 15 to 21 days,
27inclusive, from the end of the lastbegin delete weekend deletebegin insert week’send insert ending datebegin delete showingend delete
28begin insert shownend insert on the continued claim, or 15 to 21 days inclusive, from
29the date the department issued that continued claim, whichever is
30later.
Section 1735.1 of the Unemployment Insurance
32Code is amended to read:
(a) An individual who has been assessed under the
34provisions of Section 1128.1, orbegin delete anyend deletebegin insert anend insert officer, major stockholder,
35or other person having charge of the affairs of a business entity
36that has been assessed under the provisions of that section, shall
37be personally liable for the amount of contributions, withholdings,
38penalties, and interest due and unpaid by the employer, other than
39those under subdivisions (a) and (b) of Section 1128, for whom
40money was exchanged as described in Section 1128.1. The director
P804 1may assess that person for the amount of contributions,
2withholdings, all penalties other
than those under Section 1128,
3and interest. The provisions of Article 8 (commencing with Section
41126) and Article 9 (commencing with Section 1176) of Chapter
54begin delete of Part 1
shallend delete
6Sections 1221, 1222, 1223, and 1224begin delete shallend delete apply to assessments
7made pursuant to this section. With respect to that person, the
8director shall have all the collection remedies set forth in this
9chapter.
10(b) For purposes of this section, “business entity” means a
11partnership, corporation, association, limited liability company,
12or Indian tribe (as described bybegin delete subsection (u) ofend delete Section 3306begin insert(u)end insert
13 of Title 26 of the United States Code).
Section 3655 of the Unemployment Insurance Code,
15as amended by Section 17 of Chapter 399 of the Statutes of 2014,
16is amended to read:
(a) The Employment Development Department shall
18consider the facts submitted by an employer pursuant to Section
193654 and, if benefits are claimed subsequent to the filing of the
20extended duration benefits claim, make a determination as to the
21exhaustee’s eligibility for the extended duration benefits. The
22Employment Development Department shall promptly notify the
23exhaustee and any employer who prior to the determination has
24submitted any facts pursuant to Section 3654 of the determination
25and the reasons therefor. The exhaustee andbegin delete thisend deletebegin insert theend insert employer may
26appeal therefrom to an administrative law judge within 20 days
27from mailing or personal
service of notice of the determination.
28The 20-day period may be extended for good cause. The Director
29of Employment Development shall be an interested party to any
30appeal.
31(b) “Good cause,” as used in this section, shall include, but not
32be limited to, mistake, inadvertence, surprise, or excusable neglect.
33(c) This section shall become inoperative on July 1, 2015, and,
34as of January 1, 2016, is repealed.
Section 3655 of the Unemployment Insurance Code,
36as added by Section 18 of Chapter 399 of the Statutes of 2014, is
37amended to read:
(a) The Employment Development Department shall
39consider the facts submitted by an employer pursuant to Section
403654 and, if benefits are claimed subsequent to the filing of the
P805 1extended duration benefits claim, make a determination as to the
2exhaustee’s eligibility for the extended duration benefits. The
3Employment Development Department shall promptly notify the
4exhaustee and any employer who prior to the determination has
5submitted any facts pursuant to Section 3654 of the determination
6and the reasons therefor. The exhaustee andbegin delete thisend deletebegin insert theend insert employer may
7appeal therefrom to an administrative law judge within 30 days
8from mailing or personal
service of notice of the determination.
9The 30-day period may be extended for good cause. The Director
10of Employment Development shall be an interested party to any
11appeal.
12(b) “Good cause,” as used in this section, shall include, but not
13be limited to, mistake, inadvertence, surprise, or excusable neglect.
14(c) This section shall take effect on July 1, 2015.
Section 14013 of the Unemployment Insurance
16Code is amended to read:
The board shall assist the Governor in the following:
18(a) Promoting the development of a well-educated and highly
19skilled 21st century workforce.
20(b) Developing the State Workforce Investment Plan.
21(c) Developing guidelines for the continuous improvement and
22operation of the workforce investment system, including:
23(1) Developing policies to guide the one-stop system.
24(2) Providing technical assistance for the continuous
25improvement of the one-stop system.
26(3) Recommending state investments in the one-stop system.
27(4) Targeting resources to competitive and emerging industry
28sectors and industry clusters that provide economic security and
29are either high-growth sectors or critical to California’s economy,
30or both. These industry sectors and clusters shall have significant
31economic impacts on the state and its regional and workforce
32development needs and have documented career opportunities.
33(5) To the extent permissible under state and federal laws,
34recommending youth policies and strategies that support linkages
35between kindergarten and grades 1 to 12, inclusive, and community
36college educational systems and youth training opportunities in
37order to help youth secure educational and career advancement.
38These policies and strategies may be implemented using a sector
39strategies framework and should ultimately lead to
placement in
40a job providing economic security or job placement in an
P806 1entry-level job that has a well-articulated career pathway or career
2ladder to a job providing economic security.
3(6) To the extent permissible under state and federal law,
4recommending adult and dislocated worker training policies and
5investments that offer a variety of career opportunities while
6upgrading the skills of California’s workforce. These may include
7training policies and investments pertaining to any of the following:
8(A) Occupational skills training, including training for
9nontraditional employment.
10(B) On-the-job training.
11(C) Programs that combine workplace training with related
12instruction, which may include cooperative education programs.
13(D) Training programs operated by the private sector.
14(E) Skill upgrading and retraining.
15(F) Entrepreneurial training.
16(G) Job readiness training.
17(H) Adult education and literacy activities provided in
18combination with any of the services described in this paragraph.
19(I) Customized training conducted with a commitment by an
20employer or group of employers to employ an individual upon
21successful completion of the training.
22(d) Developing and continuously improving the statewide
23workforce investment system as delivered via the one-stop delivery
24system and via other
programs and services supported by funding
25from the federal Workforce Investment Act of 1998, including:
26(1) Developing linkages in order to ensure coordination and
27nonduplication among workforce programs and activities.
28(2) Reviewing local workforce investment plans.
29(3) Leveraging state and federal funds to ensure that resources
30are invested in activities that meet the needs of the state’s
31competitive and emerging industry sectors and advance the
32education and employment needs of students and workers so they
33can keep pace with the education and skill needs of the state, its
34regional economies, and leading industry sectors.
35(e) Commenting, at least once annually, on the measures taken
36pursuant to the Carl D. Perkins Vocational and Applied Technology
37
Education Act Amendments of 1990 (Public Law 101-392; 20
38U.S.C. Sec. 2301 et seq.).
39(f) Designating local workforce investment areas within the
40state based on information derived from all of the following:
P807 1(1) Consultations with the Governor.
2(2) Consultations with the chief local elected officials.
3(3) Consideration of comments received through the public
4comment process, as described in Section 112(b)(9) of the federal
5Workforce Investment Act of 1998begin insert (Public Law 105-220)end insert.
6(g) Developing and modifying allocation formulas, as necessary,
7for the distribution of funds for adult
employment and training
8activities, for youth activities to local workforce investment areas,
9and dislocated worker employment and training activities, as
10permitted by federal law.
11(h) Coordinating the development and continuous improvement
12of comprehensive state performance measures, including state
13adjusted levels of performance, to assess the effectiveness of the
14workforce investment activities in the state.
15(i) Preparing the annual report to the United States Secretary of
16Labor.
17(j) Recommending policy for the development of the statewide
18employment statistics system, including workforce and economic
19data, as described in Section 49l-2 of Title 29 of the United States
20Code, and using, to the fullest extent possible, the Employment
21Development Department’s existing labor market information
22systems.
23(k) Recommending strategies to the Governor for strategic
24training investments of the Governor’s 15-percent discretionary
25funds.
26(l) Developing and recommending waivers, in conjunction with
27local workforce investment boards, to the Governor as provided
28for in the federal Workforce Investment Act of 1998.
29(m) Recommending policy to the Governor for the use of the
3025-percent rapid response funds, as authorized under the federal
31Workforce Investment Act of 1998.
32(n) Developing an application to the United States Department
33of Labor for an incentive grant under Section 9273 of Title 20 of
34the United States Code.
35(o) (1) Developing a workforce metrics dashboard, to be
36updated
annually, that measures the state’s human capital
37investments in workforce development to better understand the
38collective impact of these investments on the labor market. The
39workforce metrics dashboard shall be produced using existing
40available data and resources that are currently collected and
P808 1accessible to state agencies. The board shall convene workforce
2program partners to develop a standardized set of inputs and
3outputs for the workforce metrics dashboard. The workforce
4metrics dashboard shall do all of the following:
5(A) Provide a status report on credential attainment, training
6completion, degree attainment, and participant earnings from
7workforce education and training programs. The board shall publish
8and distribute the final report.
9(B) Provide demographic breakdowns, including, to the extent
10possible, race, ethnicity, age, gender, veteran status, wage and
11credential
or degree outcomes, and information on workforce
12outcomes in different industry sectors.
13(C) Measure, at a minimum and to the extent feasible with
14existing resources, the performance of the following workforce
15programs: community college career technical education, the
16Employment Training Panel, Title I and Title II of the federal
17Workforce Investment Act of 1998, Trade Adjustment Assistance,
18and state apprenticeship programs.
19(D) Measure participant earnings in California, and to the extent
20feasible, in other states. The Employment Development Department
21shall assist the board by calculating aggregated participant earnings
22using unemployment insurance wage records, without violating
23any applicable confidentiality requirements.
24(2) The State Department of Education is hereby authorized to
25collect the social security
numbers of adults participating in adult
26education programs so that accurate participation in those programs
27can be represented in the report card. However, an individual shall
28not be denied program participation if he or she refuses to provide
29a social security number. The State Department of Education shall
30keep this information confidential and shall only use this
31information for tracking purposes, in compliance with all applicable
32state and federal law.
33(3) (A) Participating workforce programs, as specified inbegin delete clauseend delete
34
subparagraph (C) of paragraph (1), shall provide participant data
35in a standardized format to the Employment Development
36Department.
37(B) The Employment Development Department shall aggregate
38data provided by participating workforce programs and shall report
39the data, organized by demographics, earnings, and industry of
P809 1employment, to the board to assist the board in producing the
2annual workforce metrics dashboard.
Section 241 of the Vehicle Code, as added by
4Section 4 of Chapter 740 of the Statutes of 2012, is repealed.
A “buy-here-pay-here” dealer is a dealer, as defined in
6Section 285, who is not otherwise expressly excluded by Section
7241.1, and who does all of the following:
8(a) Enters into conditional sale contracts, within the meaning
9of subdivision (a) of Section 2981 of the Civil Code, and subject
10to the provisions of Chapter 2b (commencing with Section 2981)
11of Title 14 of Part 4 of Division 3 of the Civil Code, or lease
12contracts, within the meaning of Section 2985.7 of the Civil Code,
13and subject to the provisions of Chapter 2d (commencing with
14Section 2985.7) of Title 14 of Part 4 of Division 3 of the Civil
15Code.
16(b) Assigns less than 90 percent of all unrescinded conditional
17sale contracts and lease contracts to unaffiliated third-party finance
18or leasing sources within 45 days of the consummation of those
19contracts.
20(c) For purposes of this section, a conditional sale contract does
21not include a contract for the sale of a motor vehicle if all amounts
22owed under the contract are paid in full within 30 days.
23(d) The department may promulgate regulations as necessary
24to implement this section.
Section 241.1 of the Vehicle Code, as added by
26Section 5 of Chapter 740 of the Statutes of 2012, is repealed.
The term “buy-here-pay-here” dealer does not include
28any of the following:
29(a) A lessor who primarily leases vehicles that are two model
30years old or newer.
31(b) A dealer that does both of the following:
32(1) Certifies 100 percent of used vehicle inventory offered for
33sale at retail price pursuant to Section 11713.18.
34(2) Maintains an onsite service and repair facility that is licensed
35by the Bureau of Automotive Repair and employs a minimum of
36five master automobile technicians that are certified by the National
37Institute
for Automotive Service Excellence.
Section 612 of the Vehicle Code, as added by
39Chapter 1305 of the Statutes of 1986, is repealed.
“Tour bus” means a bus designed for carrying more than
216 passengers and the driver which is operated by or for a
3charter-party carrier of passengers, as defined in Section 5360 of
4the Public Utilities Code.
Section 612 of the Vehicle Code, as amended by
6Section 8 of Chapter 1216 of the Statutes of 1989, is amended to
7read:
“Tour bus” means a bus, which is operated by or for a
9charter-party carrier of passengers, as defined in Section 5360 of
10the Public Utilities Code, or a passenger stage corporation, as
11defined in Section 226 of the Public Utilitiesbegin delete Code, or any highway Code.
12carrier of passengers required to register with the California Public
13Utilities Commission pursuant to Section 3910 of the Public
14Utilitiesend delete
Section 1803.5 of the Vehicle Code, as added by
16Chapter 216 of the Statutes of 2010, is repealed.
(a) In accordance with Section 41501 or 42005, the
18clerk of a court or hearing officer, when a person who receives a
19notice to appear at a court or board proceeding for a violation of
20any statute relating to the safe operation of vehicles is granted a
21continuance of the proceeding in consideration for completion of
22a program at a school for traffic violators, that results in a
23designation of the conviction as confidential in consideration for
24that completion, shall prepare an abstract of the record of the court
25or board proceeding that indicates that the person was convicted
26of the violation and ordered to complete a traffic violator program,
27certify the abstract to be true and correct, and cause the abstract
28to be forwarded to the department at its office at Sacramento within
29five days after receiving proof that the program was completed or
30the
due date to which the proceeding was continued, whichever
31comes first.
32(b) This section shall become operative on July 1, 2011.
Section 1808.7 of the Vehicle Code, as added by
34Chapter 216 of the Statutes of 2010, is repealed.
(a) The record of the department relating to the first
36proceeding and conviction under Section 1803.5 in any 18-month
37period for completion of a traffic violator school program is
38confidential, shall not be disclosed to any person, except a court
39and as provided for in subdivision (b), and shall be used only for
40statistical purposes by the department. No violation point count
P811 1shall be assessed pursuant to Section 12810 if the conviction is
2confidential.
3(b) The record of a conviction described in subdivision (a) shall
4not be confidential if any of the following circumstances applies:
5(1) The person convicted holds a commercial driver’s license
6as defined by Section 15210.
7(2) The person convicted holds a commercial driver’s license
8in another state, in accordance
with Part 383 of Title 49 of the
9Code of Federal Regulations.
10(3) The violation occurred in a commercial motor vehicle, as
11defined in subdivision (b) of Section 15210.
12(4) The conviction would result in a violation point count of
13more than one point pursuant to Section 12810.
14(c) This section shall become operative on July 1, 2011.
Section 2480 of the Vehicle Code is amended to
16read:
(a) A peace officer may remove a vehicle, within the
18territorial limits in which the officer may act, if the vehicle is
19involved in the theft or movement of stolen inedible kitchen grease.
20If a peace officer removes a vehicle pursuant to this subdivision,
21the officer may, after citing or arresting the responsible person,
22seize the vehicle, which may be impounded for up to 15 days.
23(b) The registered and legal owner of a vehicle removed and
24seized pursuant to subdivision (a) or their agents shall be provided
25the opportunity for a storage hearing to determine the validity of
26the storage in accordance with Section 22852.
27(c) (1) Notwithstanding Chapter 10 (commencing with Section
28
22650)begin insert of Division 11end insert
or any other law, an impounding agency
29shall release a motor vehicle to the registered owner or his or her
30agent prior to the conclusion of the impoundment period described
31in subdivision (a) under any of the following circumstances:
32(A) If the vehicle is a stolen vehicle and reported as stolen in
33accordance with then existing state and local law.
34(B) If the legal owner or registered owner of the vehicle is a
35rental car agency.
36(C) If, prior to the conclusion of the impoundment period, a
37citation or notice is dismissed under Section 40500, criminal
38charges are not filed by the district attorney because of a lack of
39evidence, or the charges are otherwise dismissed by the court.
P812 1(2) A vehicle shall be released pursuant to this subdivision
only
2if the registered owner or his or her agent presents a currently valid
3driver’s license to operate the vehicle and proof of current vehicle
4registration, or if ordered by a court.
5(d) A vehicle seized and removed pursuant to subdivision (a)
6shall be released to the legal owner of the vehicle, or the legal
7owner’s agent, on or before the 15th day of impoundment if all of
8the following conditions are met:
9(1) The legal owner is a motor vehicle dealer, bank, credit union,
10acceptance corporation, or other licensed financial institution
11legally operating in this state, or is another person, not the
12registered owner, holding a security interest in the vehicle.
13(2) The legal owner or the legal owner’s agent pays all towing
14and storage fees related to the impoundment of the vehicle. No
15lien sale processing fees shall be
charged to a legal owner who
16redeems the vehicle on or before the seventh day of impoundment.
17(3) The legal owner or the legal owner’s agent presents
18foreclosure documents or an affidavit of repossession for the
19vehicle.
20(e) (1) The registered owner or his or her agent is responsible
21for all towing and storage charges related to the impoundment,
22and any administrative charges authorized under Section 22850.5.
23(2) If the vehicle is a rental vehicle, the rental car agency may
24require the person to whom the vehicle was rented to pay all towing
25and storage charges related to the impoundment and any
26administrative charges authorized under Section 22850.5 incurred
27by the rental car agency in connection with obtaining possession
28of the vehicle.
29(3) The owner is not liable for any towing and storage charges
30related to the impoundment if acquittal or dismissal occurs.
31(4) The vehiclebegin delete mayend deletebegin insert shallend insert not be sold prior to the defendant’s
32conviction.
Section 2501 of the Vehicle Code, as added by
34Section 6 of Chapter 860 of the Statutes of 1981, is repealed.
The Commissioner of the California Highway Patrol
36may issue licenses for the operation of privately owned and
37operated ambulances used to respond to emergency calls, armored
38cars, fleet owner inspection and maintenance stations, and for the
39transportation of explosives. The licenses shall be issued in
40accordance with the provisions of this chapter and regulations
P813 1adopted by the commissioner pursuant thereto. All licenses issued
2by the commissioner shall expire one year from the date of issue.
3Licenses may be renewed upon application and payment of the
4renewal fees if the application for renewal is made within the
530-day period prior to the date of expiration. Persons whose
6licenses have expired shall immediately cease the activity requiring
7a license, but the commissioner shall accept applications for
8renewal during the 30-day period following the date of expiration
9if they are accompanied by the new license fee. In no case shall a
10license be renewed where the application is received more than
1130 days after the date of expiration.
12This section shall become operative January 1, 1988.
Section 2501 of the Vehicle Code, as amended by
14Section 2 of Chapter 294 of the Statutes of 1982, is amended to
15read:
The Commissioner of the California Highway Patrol
17may issue licenses for the operation of privately owned or operated
18ambulances used to respond to emergency calls, armored cars,
19fleet owner inspection and maintenance stations, and for the
20transportation of hazardous material, including the transportation
21of explosives.begin delete Suchend deletebegin insert Theend insert licenses shall be issued in accordance with
22the provisions of this chapter and regulations adopted by the
23commissioner pursuant thereto. All licenses issued by the
24commissioner shall expire one year from the date of issue. Licenses
25may be renewed upon application and payment of the renewal fees
26if
the application for renewal is made within the 30-day period
27prior to the date of expiration. Persons whose licenses have expired
28shall immediately cease the activity requiring a license, but the
29commissioner shall accept applications for renewal during the
3030-day period following the date of expiration if they are
31accompanied by the new license fee.begin delete In no case shall aend deletebegin insert Aend insert license
32begin insert shall notend insert be renewedbegin delete whereend deletebegin insert whenend insert the application is received more
33than 30 days after the date of expiration.
Section 5156.7 of the Vehicle Code is amended to
35read:
(a) The State Department of Health Care Services
37shall apply to the department, pursuant to Section 5156, to sponsor
38a breast cancer awareness license plate program. The department
39shall issue specialized license plates for that program if the State
P814 1Department of Health Care Services complies with the
2requirements of Section 5156.
3(b) The State Department of Health Care Services may accept
4and use donated artwork from California artists for the license
5plate.
6(c) Notwithstanding subdivision (c) of Section 5157, the
7additional fees prescribed by Section 5157 for the issuance,
8renewal, or transfer of the specialized license plates shall be
9deposited, after the department deducts its administrative
costs, in
10the Breast Cancer Control Account in the Breast Cancer Fund
11established pursuant to Section 30461.6 of the Revenue and
12Taxation Code.
13(d) It is the intent of the Legislature that the department, in
14consultation with the State Department of Health Care Services,
15will design and make available for issuance pursuant to this article
16special breast cancer awareness license plates. Specifically, it is
17the intent of the Legislature that the license plates issued pursuant
18to this sectionbegin delete shallend delete consist of a pink breast cancer awareness ribbon
19to the left of the numerical series and a breast cancer awareness
20message, such as, “Early Detection Saves Lives,” below the
21numerical series.
Chapter 5 (commencing with Section 10900) of
23Division 4 of the Vehicle Code, as added by Section 7 of Chapter
241247 of the Statutes of 1994, is repealed.
Section 12801 of the Vehicle Code, as amended by
26Section 6 of Chapter 27 of the Statutes of 2014, is amended to
27read:
(a) Except as provided in subdivisions (b) and (c) and
29Section 12801.9, the department shall require an application for a
30driver’s license to contain the applicant’s social security account
31number and any other number or identifier determined to be
32appropriate by the department.
33(b) An applicant who provides satisfactory proof that his or her
34presence in the United States is authorized under federal law, but
35who is not eligible for a social security account number, is eligible
36to receive an original driver’s license if he or she meets all other
37qualifications for licensure.
38(c) (1) An applicant applying for a driver’s license under
39Section 12801.9, who has never been issued a
social security
40account number and is not presently eligible for a social security
P815 1account number, shall satisfy the requirements of this section if
2he or she indicates in the application described in Section 12800,
3in the manner prescribed by the department, that he or she has
4never been issued a social security account number and is not
5presently eligible for a social security account number.
6(2) This subdivisionbegin delete shallend deletebegin insert doesend insert not apply to applications for a
7commercial driver’s license. The department shall require all
8applications for a commercial driver’s license to include the
9applicant’s social security account number.
10(3) begin deleteNothing in this end deletebegin insertThis
end insertsection shallbegin insert notend insert be used to consider an
11individual’s citizenship or immigration status as a basis for a
12criminal investigation, arrest, or detention.
13(d) The department shall not complete an application for a
14driver’s license unless the applicant is in compliance with the
15requirements of subdivision (a), (b)begin insert,end insert
or (c).
16(e) Notwithstanding any other law, the social security account
17number collected on a driver’s license application shall not be
18displayed on the driver’s licensebegin insert,end insert including, but not limited to,
19inclusion on a magnetic tape or strip used to store data on the
20license.
21(f) This section shall become operative on January 1, 2015, or
22on the date that the director executes a declaration pursuant to
23Section 12801.11, whichever is sooner.
24(g) This section shall become inoperative on the effective date
25of a final judicial determination made by any court of appellate
26jurisdiction that any provision of the act that added this section,
27or its application, either in whole or in part, is enjoined, found
28
unconstitutional, or held invalid for any reason. The department
29shall post this information on its Internet Web site.
Section 12801.9 of the Vehicle Code is amended to
31read:
(a) Notwithstanding Section 12801.5, the department
33shall issue an original driver’s license to a person who is unable
34to submit satisfactory proof that the applicant’s presence in the
35United States is authorized under federal law if he or she meets
36all other qualifications for licensure and provides satisfactory proof
37to the department of his or her identity and California residency.
38(b) The department shall adopt emergency regulations to carry
39out the purposes of this section, including, but not limited to,
40procedures for (1) identifying documents acceptable for the
P816 1purposes of proving identity and California residency, (2)
2procedures for verifying the authenticity of the documents, (3)
3issuance of a temporary license pending verification of any
4document’s
authenticity, and (4) hearings to appeal a denial of a
5license or temporary license.
6(c) Emergency regulations adopted for purposes of establishing
7the documents acceptable to prove identity and residency pursuant
8to subdivision (b) shall be promulgated by the department in
9consultation with appropriate interested parties, in accordance with
10the Administrative Procedure Act (Chapter 3.5 (commencing with
11Section 11340) of Part 1 of Division 3 of Title 2 of the Government
12Code), including law enforcement representatives, immigrant rights
13representatives, labor representatives, and other stakeholders,
14which may include, but are not limited to, thebegin insert Department of theend insert
15 California Highway Patrol, the California State Sheriffs’
16Association, and the California Police Chiefs Association. The
17department shall accept various types of documentation for
this
18purpose, including, but not limited to, the following documents:
19(1) A valid, unexpired consular identification document issued
20by a consulate from the applicant’s country of citizenship, or a
21valid, unexpired passport from the applicant’s country of
22citizenship.
23(2) An original birth certificate, or other proof of age, as
24designated by the department.
25(3) A home utility bill, lease or rental agreement, or other proof
26of California residence, as designated by the department.
27(4) The following documents, which, if in a language other than
28English, shall be accompanied by a certified translation or an
29affidavit of translation into English:
30(A) A marriage license or divorce certificate.
31(B) A foreign federal electoral photo card issued on or after
32January 1, 1991.
33(C) A foreign driver’s license.
34(5) A United States Department of Homeland Security Form
35I-589, Application for Asylum and for Withholding of Removal.
36(6) An official school or college transcript that includes the
37applicant’s date of birth, or a foreign school record that is sealed
38and includes a photograph of the applicant at the age the record
39was issued.
P817 1(7) A United States Department of Homeland Security Form
2I-20 or Form DS-2019.
3(8) A deed or title to real property.
4(9) A property tax bill or statement issued within the previous
512 months.
6(10) An income tax return.
7(d) (1) A license issued pursuant to this section, including a
8temporary license issued pursuant to Section 12506, shall include
9a recognizable feature on the front of the card, such as the letters
10“DP” instead of, and in the same font size as, the letters “DL,”
11with no other distinguishable feature.
12(2) The license shall bear the following notice: “This card is
13not acceptable for official federal purposes. This license is issued
14only as a license to drive a motor vehicle. It does not establish
15eligibility for employment, voter registration, or public benefits.”
16(3) The notice described in paragraph (2) shall be in
lieu of the
17notice provided in Section 12800.5.
18(e) If the United States Department of Homeland Security
19determines a license issued pursuant to this section does not satisfy
20the requirements of Section 37.71 of Title 6 of the Code of Federal
21Regulations, adopted pursuant to paragraph (11) of subdivision
22(d) of Section 202 of the Real ID Act of 2005 (Public Law 109-13),
23the department shall modify the license only to the extent necessary
24to satisfy the requirements of that section.
25(f) Notwithstanding Section 40300 or any other law, a peace
26officer shall not detain or arrest a person solely on the belief that
27the person is an unlicensed driver, unless the officer has reasonable
28cause to believe the person driving is under 16 years of age.
29(g) The inability to obtain a driver’s license pursuant to this
30section does
not abrogate or diminish in any respect the legal
31requirement of every driver in this state to obey the motor vehicle
32laws of this state, including laws with respect to licensing, motor
33vehicle registration, and financial responsibility.
34(h) Itbegin delete shall beend deletebegin insert isend insert a violation of law to discriminate against a
35person because he or she holds or presents a license issued under
36this section, including, but not limited to, the following:
37(1) It is a violation of the Unruh Civil Rights Act (Section 51
38of the Civil Code), for a business establishment to discriminate
39against a person because he or she holds or presents a license issued
40under this section.
P818 1(2) (A) It is a violation of the California Fair Employment and
2Housing Act (Part 2.8 (commencing with Section 12900) of
3Division 3 of Title 2 of the Government Code) for an employer or
4other covered person or entity, pursuant to Section 12940 of the
5Government Code and subdivision (v) of Section 12926 of the
6Government Code, to discriminate against a person because the
7person holds or presents a driver’s license issued pursuant to this
8section, or for an employer or other covered entity to require a
9person to present a driver’s license, unless possessing a driver’s
10license is required by law or is required by the employer and the
11employer’s requirement is otherwise permitted by law.begin delete Nothing begin insert Thisend insert section shallbegin insert
notend insert be construed to limit or expand an
12in thisend delete
13employer’s authority to require a person to possess a driver’s
14license.
15(B) Notwithstanding subparagraph (A),begin delete nothing inend delete this section
16shallbegin insert notend insert be construed to alter an employer’s rights or obligations
17under Section 1324a of Title 8 of the United States Code regarding
18obtaining documentation evidencing identity and authorization for
19employment. An action taken by an employer that is required by
20the federal Immigration and Nationality Act (8 U.S.C. Sec. 1324a)
21is not a violation of law.
22(3) It is a violation of Section 11135 of the Government Code
23for a state or local governmental authority, agent, or person acting
24
on behalf of a state or local governmental authority, or a program
25or activity that is funded directly or receives financial assistance
26from the state, to discriminate against an individual because he or
27she holds or presents a license issued pursuant to this section.
28(i) Driver’s license information obtained by an employer shall
29be treated as private and confidential, is exempt from disclosure
30under the California Public Records Act (Chapter 3.5 (commencing
31with Section 6250) of Division 7 of Title 1 of the Government
32Code), and shall not be disclosed to any unauthorized person or
33used for any purpose other than to establish identity and
34authorization to drive.
35(j) Information collected pursuant to this section is not a public
36record and shall not be disclosed by the department, except as
37required by law.
38(k) A
license issued pursuant to this section shall not be used
39to consider an individual’s citizenship or immigrationbegin delete status,end deletebegin insert statusend insert
40 as a basis for an investigation, arrest, citation, or detention.
P819 1(l) On or before January 1, 2018, the California Research Bureau
2shall compile and submit to the Legislature and the Governor a
3report of any violations of subdivisions (h) and (k). Information
4pertaining to any specific individual shall not be provided in the
5report.
6(m) In addition to the fees required by Section 14900, a person
7applying for an original license pursuant to this section may be
8required to pay an additional fee determined by the department
9that is sufficient to offset the reasonable
administrative costs of
10implementing the provisions of the act that added this section. If
11this additional fee is assessed, it shall only apply until June 30,
122017.
13(n) This section shall become operative on January 1, 2015, or
14on the date that the director executes a declaration pursuant to
15Section 12801.11, whichever is sooner.
16(o) This section shall become inoperative on the effective date
17of a final judicial determination made by any court of appellate
18jurisdiction that any provision of the act that added this section,
19or its application, either in whole or in part, is enjoined, found
20unconstitutional, or held invalid for any reason. The department
21shall post this information on its Internet Web site.
The heading of Article 1.7 (commencing with
23Section 23145) of Chapter 12 of Division 11 of the Vehicle Code
24 is repealed.
25
Section 15210 of the Vehicle Code is amended to
29read:
Notwithstanding any other provision of this code, as
31used in this chapter, the following terms have the following
32meanings:
33(a) “Commercial driver’s license” means a driver’s license
34issued by a state or other jurisdiction, in accordance with the
35standards contained in Part 383 of Title 49 of the Code of Federal
36Regulations, which authorizes the licenseholder to operate a class
37or type of commercial motor vehicle.
38(b) (1) “Commercial motor vehicle” means any vehicle or
39combination of vehicles that requires a class A or class B license,
P820 1or a class C license with an endorsement issued pursuant to
2paragraph (2), (3), (4), or (5) of subdivision (a) of Section 15278.
3(2) “Commercial motor vehicle” does not include any of the
4following:
5(A) A recreational vehicle, as defined in Section 18010 of the
6Health and Safety Code.
7(B) An implement of husbandry operated by a person who is
8not required to obtain a driver’s license under this code.
9(C) Vehicles operated by persons exempted pursuant to Section
1025163 of the Health and Safety Code or a vehicle operated in an
11emergency situation at the direction of a peace officer pursuant to
12Section 2800.
13(c) “Controlled substance” has the same meaning as defined by
14the federal Controlled Substances Act (21 U.S.C. Sec. 802).
15(d) “Conviction” means an
unvacated adjudication of guilt, or
16a determination that a person has violated or failed to comply with
17the law in a court of original jurisdiction or by an authorized
18administrative tribunal, an unvacated forfeiture of bail or collateral
19deposited to secure the person’s appearance in court, a plea of
20guilty or nolo contendere accepted by the court, the payment of a
21fine or court costs, or violation of a condition of release without
22bail, regardless of whether or not the penalty is rebated, suspended,
23or probated.
24(e) “Disqualification” means a prohibition against driving a
25commercial motor vehicle.
26(f) “Driving a commercial vehicle under the influence” means
27committing any one or more of the following unlawful acts in a
28commercial motor vehicle:
29(1) Driving a commercial motor vehicle while the operator’s
30
blood-alcohol concentration level is 0.04 percent or more, by
31weight in violation of subdivision (d) of Section 23152.
32(2) Driving under the influence of alcohol, as prescribed in
33subdivision (a) or (b) of Section 23152.
34(3) Refusal to undergo testing as required under this code in the
35enforcement of Subpart D of Part 383 or Subpart A of Part 392 of
36Title 49 of the Code of Federal Regulations.
37(g) “Employer” means any person, including the United States,
38a state, or political subdivision of a state, who owns or leases a
39commercial motor vehicle or assigns drivers to operate that vehicle.
40A person who employs himself or herself as a commercial vehicle
P821 1driver is considered to be both an employer and a driver for
2purposes of this chapter.
3(h) “Fatality”
means the death of a person as a result of a motor
4vehicle accident.
5(i) “Felony” means an offense under state or federal law that is
6punishable by death or imprisonment for a term exceeding one
7year.
8(j) “Gross combination weight rating” means the value specified
9by the manufacturer as the maximum loaded weight of a
10combination or articulated vehicle. In the absence of a value
11specified by the manufacturer, gross vehicle weight ratingbegin delete willend delete
12begin insert
shallend insert be determined by adding the gross vehicle weight rating of
13the power unit and the total weight of the towed units and any load
14thereon.
15(k) “Gross vehicle weight rating” means the value specified by
16the manufacturer as the maximum loaded weight of a single
17vehicle, as defined in Section 350.
18(l) “Imminent hazard” means the existence of a condition that
19presents a substantial likelihood that death, serious illness, severe
20personal injury, or substantial endangerment to health, property,
21or the environment may occur before thebegin delete reasonableend deletebegin insert reasonablyend insert
22 foreseeable completion date of a formal proceedingbegin insert
hasend insert begun to
23lessen the risk of death, illness, injury, or endangerment.
24(m) “Noncommercial motor vehicle” means a motor vehicle or
25combination of motor vehicles that is not included within the
26definition in subdivision (b).
27(n) “Nonresident commercial driver’s license” means a
28commercial driver’s license issued to an individual by a state under
29one of the following provisions:
30(1) The individual is domiciled in a foreign country.
31(2) The individual is domiciled in another state.
32(o) “Schoolbus” is a commercial motor vehicle, as defined in
33Section 545.
34(p) “Serious traffic violation” includes any of the following:
35(1) Excessive speeding, as defined pursuant to the federal
36Commercial Motor Vehicle Safety Act (P.L. 99-570) involving
37any single offense for any speed of 15 miles an hour or more above
38the posted speed limit.
39(2) Reckless driving, as defined pursuant to the federal
40Commercial Motor Vehicle Safety Act (P.L. 99-570), and driving
P822 1in the manner described under Section 2800.1, 2800.2, or 2800.3,
2including, but not limited to, the offense of driving a commercial
3motor vehicle in willful or wanton disregard for the safety of
4persons or property.
5(3) A violation of a state or local law involving the safe
6operation of a motor vehicle, arising in connection with a fatal
7traffic accident.
8(4) A similar violation of a state or local
law involving the safe
9operation of a motor vehicle, as defined pursuant to the
10Commercial Motor Vehicle Safety Act (Title XII of P.L. 99-570).
11(5) Driving a commercial motor vehicle without a commercial
12driver’s license.
13(6) Driving a commercial motor vehicle without the driver
14having in his or her possession a commercial driver’s license,
15unless the driver provides proof at the subsequent court appearance
16that he or she held a valid commercial driver’s license on the date
17of the violation.
18(7) Driving a commercial motor vehicle when the driver has
19not met the minimum testing standards for that vehicle as to the
20class or type of cargo the vehicle is carrying.
21(8) Driving a commercial motor vehicle while using an
22electronic wireless communication device
to write, send, or read
23a text-based communication, as defined in Section 23123.5.
24In the absence of a federal definition, existing definitions under
25this codebegin delete shallend delete apply.
26(q) “State” means a state of the United States or the District of
27Columbia.
28(r) “Tank vehicle” means a commercial motor vehicle that is
29designed to transport any liquid or gaseous material within a tank
30or tanks having an individual rated capacity of more than 119
31gallons and an aggregate rated capacity of at least 1,000 gallons
32that is permanently or temporarily attached to the vehicle or the
33chassis, including, but not limited to, cargo tanks and portable
34tanks, as defined in Part 171 of Title 49 of the Code of Federal
35Regulations. A commercial motor vehicle transporting an empty
36
storage container tank not designed for transportation, with a rated
37capacity of at least 1,000 gallons that is temporarily attached to a
38flatbed trailer, is not a tank vehicle.
Section 34500 of the Vehicle Code is amended to
40read:
The department shall regulate the safe operation of the
2following vehicles:
3(a) Motortrucks of three or more axles that are more than 10,000
4pounds gross vehicle weight rating.
5(b) Truck tractors.
6(c) Buses, schoolbuses, school pupil activity buses, youth buses,
7farm labor vehicles, modified limousines, and general public
8paratransit vehicles.
9(d) Trailers and semitrailers designed or used for the
10transportation of more than 10 persons, and the towing motor
11vehicle.
12(e) Trailers and semitrailers, pole or pipe dollies, auxiliary
13
dollies, and logging dollies used in combination with vehicles
14listed in subdivision (a), (b), (c), or (d). This subdivision does not
15include camp trailers, trailer coaches, and utility trailers.
16(f) A combination of a motortruck and a vehicle or vehicles set
17forth in subdivision (e) that exceeds 40 feet in length when coupled
18together.
19(g) begin deleteAny end deletebegin insertA end insertvehicle, or a combination of vehicles, transporting
20hazardous materials.
21(h) Manufactured homes that, when moved upon the highway,
22are required to be moved pursuant to a permit as specified in
23Section 35780 or 35790.
24(i) A
park trailer, as described in Section 18009.3 of the Health
25and Safety Code, that, when moved upon a highway, is required
26to be moved pursuant to a permit pursuant to Section 35780.
27(j) Any other motortruck not specified in subdivisions (a) to
28(h), inclusive, or subdivision (k), that is regulated by the
29Department of Motor Vehicles, Public Utilities Commission, or
30United States Secretarybegin delete of the Departmentend delete of Transportation, but
31only for matters relating to hours of service and logbooks of
32drivers.
33(k) A commercial motor vehicle with a gross vehicle weight
34rating of 26,001 or more pounds or a commercial motor vehicle
35of any gross vehicle weight rating towing a vehicle described in
36subdivision (e) with a gross vehicle weight rating of more than
3710,000 pounds, except combinations including camp
trailers, trailer
38coaches, or utility trailers. For purposes of this subdivision, the
39term “commercial motor vehicle” has the meaning defined in
40subdivision (b) of Section 15210.
Section 35401.7 of the Vehicle Code is amended to
2read:
(a) The limitations of access specified in subdivision
4(d) of Section 35401.5 do not apply to licensed carriers of livestock
5when those carriers are directly en route to or from a point of
6loading or unloading of livestock on those portions of State
7Highway Route 101 located in the Counties of Del Norte,
8Humboldt, and Mendocino from its junction with State Highway
9Route 1 near Leggett north to the Oregon border, if the travel is
10necessary and incidental to the shipment of the livestock.
11(b) The exemption allowed under this section does not apply
12unless all of the following conditions are met:
13(1) The length of the truck tractor, in combination with the
14semitrailer used to transport the livestock,
does not exceed a total
15of 70 feet.
16(2) The distance from the kingpin to the rearmost axle of the
17semitrailer does not exceed 43 feet.
18(3) The length of the semitrailer does not exceed a total of 48
19feet.
20(c) The exemption allowed under this section does not apply to
21travel conducted on the day prior to, or on the day of, any federally
22recognized holiday.
23(d) (1) Because route improvements in Richardson Grove that
24will allow the combination of vehicles described in Section 35401.5
25to fully operate on all portions of State Highway Route 101 located
26in the Counties of Del Norte, Humboldt, and Mendocino are
27ongoing and not yet completed, this section shall remain in effect
28only until both of the following conditions are satisfied:
29(A) All route improvements in Richardson Grove are completed
30without restraint, including, but not limited to, judicial or injunctive
31restraints.
32(B) The Director of Transportation determines that the
33combination of vehicles described in Section 35401.5 is authorized
34to operate on all portions of State Highway Route 101 located in
35the Counties of Del Norte, Humboldt, and Mendocino. When the
36director makes the determination described in this subparagraph,
37the director shall post a declaration on the Internet Web site of the
38Department of Transportation.
P825 1(2) This section is repealed as of the date that the declaration
2described in subparagraph (B) of paragraph (1) is posted on the
3Department of Transportation’s Internet Web site.
4(3) The declaration
described in subparagraph (B) of paragraph
5(1) shall state that it is being made pursuant to this section.
6(e) (1) Ifbegin insert,end insert prior to the completion of the route improvements in
7Richardson Grove as described in paragraph (1) of subdivision
8(d), the Director of Transportation determines that the only
9adjustment to State Highway Route 101 possible to accommodate
10the truck sizes allowed to travel on portions of State Highway
11Route 101, pursuant to subdivisions (a) and (b), is the removal of
12any tree that has a diameter of 42 inches or greater, measured
13outside the bark, at 12 inches above ground on the side adjacent
14to the highest ground level, the director shall notify the Secretary
15of State of that determination.
16(2) Ifbegin insert,end insert
prior to the completion of the route improvements in
17Richardson Grove as described in paragraph (1) of subdivision
18(d), the Director of Transportation determines that safety
19improvements to the portion of State Highway Route 101 described
20in subdivision (a) have resulted in the reclassification of the entire
21segment as a terminal access route pursuant to subdivision (d) of
22Section 35401.5, the director shall notify the Secretary of State of
23that determination.
24(3) The notice required under paragraph (1) or (2) shall state
25that it is being made pursuant to this section.
26(4) This section is repealed on the date the Secretary of State
27receives either of the notices described in this subdivision.
Section 40303.5 of the Vehicle Code is amended to
29read:
Wheneverbegin delete anyend deletebegin insert aend insert person is arrested for any of the
31following offenses, the arresting officer shall permit the arrested
32person to execute a notice containing a promise to correct the
33violation in accordance with the provisions of Section 40610 unless
34the arresting officer finds that any of the disqualifying conditions
35specified in subdivision (b) of Section 40610 exist:
36(a) begin deleteAny end deletebegin insertA end insertregistration infraction set
forth in Division 3
37(commencing with Section 4000).
38(b) begin deleteAny end deletebegin insertA end insertdriver’s license infraction set forth in Division 6
39(commencing with Section 12500), and subdivision (a) of Section
4012951, relating to possession ofbegin insert aend insert driver’s license.
P826 1(c) Section 21201, relating to bicycle equipment.
2(d) begin deleteAny end deletebegin insertAn end insertinfraction involving equipment set forth in
Division
312 (commencing with Section 24000), Division 13 (commencing
4with Section 29000), Division 14.8 (commencing with Section
534500), Division 16 (commencing with Section 36000), Division
616.5 (commencing with Section 38000), and Division 16.7
7(commencing with Section 39000).
8(e) Section 2482, relating to registration decals for vehicles
9transporting inedible kitchen grease.
Section 42002.1 of the Vehicle Code, as added by
11Section 4 of Chapter 899 of the Statutes of 2006, is repealed.
A person convicted of a misdemeanor violation of
13Section 2800, 2801, or 2803, insofar as it affects a failure to stop
14and submit to inspection of equipment or for an unsafe condition
15endangering a person, is punishable as follows:
16(a) By a fine not exceeding fifty dollars ($50) or imprisonment
17in the county jail not exceeding five days.
18(b) For a second conviction within a period of one year, a fine
19not exceeding one hundred dollars ($100) or imprisonment in the
20county jail not exceeding 10 days, or both that fine and
21imprisonment.
22(c) For a third or a subsequent conviction within a period of one
23year, a fine not exceeding five hundred dollars ($500) or
24imprisonment in the county jail not exceeding six months, or both
25that fine and imprisonment.
Section 42002.1 of the Vehicle Code, as added by
27Section 4 of Chapter 900 of the Statutes of 2006, is repealed.
A person convicted of a misdemeanor violation of
29Section 2800, 2801, or 2803, insofar as it affects a failure to stop
30and submit to inspection of equipment or for an unsafe condition
31endangering a person, shall be punished as follows:
32(a) By a fine not exceeding fifty dollars ($50) or imprisonment
33in the county jail not exceeding five days.
34(b) For a second conviction within a period of one year, a fine
35not exceeding one hundred dollars ($100) or imprisonment in the
36county jail not exceeding 10 days, or both that fine and
37imprisonment.
38(c) For a third or a subsequent conviction within a period of one
39year, a fine not exceeding five hundred dollars ($500) or
P827 1imprisonment in the county jail not exceeding six months, or both
2that fine and imprisonment.
Article 2 (commencing with Section 8580) of
4Chapter 2 of Part 4 of Division 5 of the Water Code, as added by
5Section 15 of Chapter 365 of the Statutes of 2007, is repealed.
Section 8612 of the Water Code, as added by Section
722 of Chapter 366 of the Statutes of 2007, is repealed.
(a) On or before December 31, 2008, the department
9shall prepare, and the board shall adopt, a schedule for mapping
10areas at risk of flooding in the Sacramento River and San Joaquin
11River drainage.
12(b) The department shall update the schedule annually and shall
13present the updated schedule to the board for adoption on or before
14December 31 of each year. The update shall include the status of
15mapping in progress and an estimated time of completion. The
16schedule shall be based on the present and expected future risk of
17flooding and associated consequences.
Section 8613 of the Water Code, as added by Section
1923 of Chapter 366 of the Statutes of 2007, is repealed.
(a) The board or the department may establish a program
21of mitigation banking for the activities of the board or the
22department under this part and for the benefit of local districts in
23the discharge of their flood control responsibilities under this part
24and the State Water Resources Law of 1945 (Chapter 1
25(commencing with Section 12570) and Chapter 2 (commencing
26with Section 12639) of Part 6 of Division 6).
27(b) For the purposes of carrying out subdivision (a), the board
28or the department, in consultation with all appropriate state, local,
29and federal agencies with jurisdiction over environmental
30protection that are authorized to regulate and impose requirements
31upon the flood control work performed under this part or the State
32Water Resources Law of 1945 (Chapter 1 (commencing with
33Section 12570) and Chapter 2 (commencing with Section 12639)
34of Part 6 of Division 6), may establish a system of mitigation
35banking by which mitigation credits may be acquired in advance
36for flood control work to be performed by the board, the
37department, or a local agency authorized to operate and maintain
38facilities of the State Plan of Flood Control.
Part 8 (commencing with Section 9650) of Division
25 of the Water Code, as added by Section 27 of Chapter 366 of
3the Statutes of 2007, is repealed.
Section 9650 of the Water Code, as added by Section
58 of Chapter 368 of the Statutes of 2007, is amended to read:
(a) (1) Commencing July 1, 2008, the allocation or
7expenditure of funds by the state for the upgrade of a project levee,
8if that upgrade is authorized on or after July 1, 2008, that protects
9an area in which more than 1,000 people reside shall be subject to
10a requirement that the local agency responsible for the operation
11and maintenance of the project levee and any city or county
12protected by the project levee, including a charter city or charter
13county, enter into an agreement to adopt a safety plan within two
14years. If a city or county is responsible for the operation and
15maintenance of the project levee, the governing body shall approve
16a resolution committing to the preparation of a safety plan within
17two years.
18(2) The local entity responsible for the operation and
19maintenance of the project levee shall submit a copy of the safety
20plan to the department and thebegin delete Reclamation Board.end deletebegin insert Central Valley
21Flood Protection Board.end insert
22(b) The safety plan, at a minimum, shall include all of the
23following elements:
24(1) A flood preparedness plan that includes storage of materials
25that can be used to reinforce or protect a levee when a risk of failure
26exists.
27(2) A levee patrol plan for high water situations.
28(3) A flood-fight plan for the period before state or federal
29agencies
assume control over the flood fight.
30(4) An evacuation plan that includes a system for adequately
31warning the general public in the event of a levee failure, and a
32plan for the evacuation of every affected school, residential care
33facility for the elderly, and long-term health care facility.
34(5) A floodwater removal plan.
35(6) A requirement, to the extent reasonable, that either of the
36following applies to a new building in which the inhabitants are
37expected to be essential service providers:
38(A) The building is located outside an area that may be flooded.
39(B) The building is designed to be operable shortly after the
40floodwater is removed.
P829 1(c) The safety plan shall be integrated into any other local
2agency emergency plan and shall be coordinated with the state
3emergency plan.
4(d) This section does not require the adoption of an element of
5the safety plan that was adopted previously and remains in effect.
Section 10725.8 of the Water Code is amended to
7read:
(a) A groundwater sustainability agency may require
9through its groundwater sustainability plan that the use of every
10groundwater extraction facility within the management area of the
11groundwater sustainability agency be measured by a
12water-measuring device satisfactory to the groundwater
13sustainability agency.
14(b) All costs associated with the purchase and installation of
15the water-measuring device shall be borne by the owner or operator
16of each groundwater extraction facility. Thebegin delete water measuringend delete
17begin insert water-measuringend insert devices shall be installed by the groundwater
18sustainability
agency or, at the groundwater sustainability agency’s
19option, by the owner or operator of the groundwater extraction
20facility. Water-measuring devices shall be calibrated on a
21reasonable schedule as may be determined by the groundwater
22sustainability agency.
23(c) A groundwater sustainability agency may require, through
24its groundwater sustainability plan, that the owner or operator of
25a groundwater extraction facility within the groundwater
26sustainability agency file an annual statement with the groundwater
27sustainability agency setting forth the total extraction in acre-feet
28of groundwater from the facility during the previous water year.
29(d) In addition to the measurement of groundwater extractions
30pursuant to subdivision (a), a groundwater sustainability agency
31may use any other reasonable method to determine groundwater
32extraction.
33(e) This section does not apply to de minimis extractors.
Section 10735.2 of the Water Code is amended to
35read:
(a) The board, after notice and a public hearing, may
37designate a basin as a probationary basin, if the board finds one
38or more of the following applies to the basin:
39(1) After June 30, 2017, none of the following have occurred:
P830 1(A) A local agency has elected to be a groundwater
2sustainability agency that intends to develop a groundwater
3sustainability plan for the entire basin.
4(B) A collection of local agencies has formed a groundwater
5sustainability agency or prepared agreements to develop one or
6more groundwater sustainability plans that will collectively serve
7as a groundwater sustainability plan for the entire basin.
8(C) A local agency has submitted an alternative that has been
9approved or is pending approval pursuant to Section 10733.6. If
10the department disapproves an alternative pursuant to Section
1110733.6, the board shall not act under this paragraph until at least
12180 days after the department disapproved the alternative.
13(2) The basin is subject to paragraph (1) of subdivision (a) of
14Section 10720.7, and after January 31, 2020, none of the following
15have occurred:
16(A) A groundwater sustainability agency has adopted a
17groundwater sustainability plan for the entire basin.
18(B) A collection of local agencies has adopted groundwater
19sustainability plans that collectively serve as a groundwater
20sustainability plan for the entire basin.
21(C) The department has approved an alternative pursuant to
22Section 10733.6.
23(3) The basin is subject to paragraph (1) of subdivision (a) of
24Section 10720.7 and after January 31, 2020, the department, in
25consultation with the board, determines that a groundwater
26sustainability plan is inadequate or that the groundwater
27sustainability program is not being implemented in a manner that
28will likely achieve the sustainability goal.
29(4) The basin is subject to paragraph (2) of subdivision (a) of
30Section 10720.7, and after January 31, 2022, none of the following
31have occurred:
32(A) A groundwater sustainability agency has adopted a
33groundwater sustainability plan for the entire basin.
34(B) A collection
of local agencies has adopted groundwater
35sustainability plans that collectively serve as a groundwater
36sustainability plan for the entire basin.
37(C) The department has approved an alternative pursuant to
38Section 10733.6.
39(5) The basin is subject to paragraph (2) of subdivision (a) of
40Section 10720.7, and either of the following have occurred:
P831 1(A) After January 31, 2022, both of the following have occurred:
2(i) The department, in consultation with the board, determines
3that a groundwater sustainability plan is inadequate or that the
4groundwater sustainability plan is not being implemented in a
5manner that will likely achieve the sustainability goal.
6(ii) The board determines that the basin
is in a condition of
7long-term overdraft.
8(B) After January 31, 2025, both of the following have occurred:
9(i) The department, in consultation with the board, determines
10that a groundwater sustainability plan is inadequate or that the
11groundwater sustainability plan is not being implemented in a
12manner that will likely achieve the sustainability goal.
13(ii) The board determines that the basin is in a condition where
14groundwater extractions result in significant depletions of
15interconnected surface waters.
16(b) In making the findings associated with paragraph (3) or (5)
17of subdivision (a), the department and board may rely on periodic
18assessments the department has prepared pursuant to Chapter 10
19(commencing with Section 10733). The board may request that
20
the department conduct additional assessments utilizing the
21regulations developed pursuant to Chapter 10 (commencing with
22Section 10733) and make determinations pursuant to this section.
23The board shall post on its Internet Web site and provide at least
2430 days for the public to comment on any determinations provided
25by the department pursuant to this subdivision.
26(c) (1) The determination may exclude a class or category of
27extractions from the requirement for reporting pursuant to Part 5.2
28(commencing with Section 5200) of Division 2 if those extractions
29are subject to a local plan or program that adequately manages
30groundwater within the portion of the basin to which that plan or
31program applies, or if those extractions are likely to have a minimal
32impact on basin withdrawals.
33(2) The determination may require reporting of a class or
34category of extractions that would
otherwise be exempt from
35reporting pursuant to paragraph (1) of subdivision (c) of Section
365202 if those extractions are likely to have a substantial impact on
37basin withdrawals or requiring reporting of those extractions is
38reasonably necessary to obtain information for purposes of this
39chapter.
P832 1(3) The determination may establish requirements for
2information required to be included in reports of groundwater
3extraction, for installation of measuring devices, or for use of a
4methodology, measuring device, or both, pursuant to Part 5.2
5(commencing with Section 5200) of Division 2.
6(4) The determination may modify the water year or reporting
7date for a report of groundwater extraction pursuant to Section
85202.
9(d) If the board finds that litigation challenging the formation
10of a groundwater sustainability agency
prevented its formation
11before July 1, 2017, pursuant to paragraph (1) of subdivision (a)begin insert,end insert
12 or prevented a groundwater sustainability program from being
13implemented in a manner likely to achieve the sustainability goal
14pursuant to paragraph (3), (4), or (5) of subdivision (a), the board
15shall not designate a basin as a probationary basin for a period of
16time equal to the delay caused by the litigation.
17(e) The board shall exclude from probationary status any portion
18of a basin for which a groundwater sustainability agency
19demonstrates compliance with the sustainability goal.
Section 12585.12 of the Water Code, as added by
21Section 28 of Chapter 366 of the Statutes of 2007, is repealed.
The department and the board may participate with
23the federal government or local agencies in the design of
24environmental enhancements associated with a federal flood control
25project, and may participate in the construction of environmental
26enhancements associated with a federal flood control project for
27which the state has authorized state participation.
Section 12938.2 of the Water Code, as added by
29Section 29 of Chapter 652 of the Statutes of 1991, is amended and
30renumbered to read:
Notwithstanding any other provision of this bond act,
33or of the State General Obligation Bond Law (Chapter 4
34(commencing with Section 16720) of Part 3 of Division 4 of Title
352 of the Government Code), if the Treasurer sells bonds pursuant
36to this bond act that include a bond counsel opinion to the effect
37that the interest on the bonds is excluded from gross income for
38federal tax purposes under designated conditions, the Treasurer
39may maintain separate accounts for the bond proceeds invested
40and the investment earnings on those proceeds, and may use or
P833 1direct the use of those proceeds or earnings to pay any
rebate,
2penalty, or other payment required under federal law, or take any
3other action with respect to the investment and use of those bond
4proceeds, as may be required or desirable under federal law in
5order to maintain the tax-exempt status of those bonds and to obtain
6any other advantage under federal law on behalf of the funds of
7this state.
Section 13272.1 of the Water Code, as added by
9Section 12 of Chapter 814 of the Statutes of 1997, is repealed.
Each regional board shall publish and distribute on
11a quarterly basis to all public water system operators within the
12region of the regional board, a list of discharges of MTBE that
13occurred during the quarter and a list of locations where MTBE
14was detected in the groundwater within the region of the regional
15board.
Section 20560.2 of the Water Code is amended to
17read:
In the case of any district that owns and operates
19facilities for the generation, transmission, distribution, and retail
20sale of electric power, the district shall give notice to the California
21Debtbegin insert and Investmentend insert Advisory Commission, at least 30 days prior
22to the proposed sale date, of the proposed sale of any evidence of
23indebtedness issued to provide financing of any works of the
24district. The notice shall include the information required by
25subdivisionbegin delete (h)end deletebegin insert (i)end insert of Section 8855 of the Government Code.
26Failure to
give this notice shall render the sale invalid. The
27California Debtbegin insert and Investmentend insert Advisory Commission may waive
28the 30-day notice period upon application by the district.
29In carrying out the purpose of this section, the California Debt
30begin insert and Investmentend insert Advisory Commission may charge fees payable
31solely from the proceeds of the sale of the debt issue in an amount
32equal to one-fortieth of 1 percent of the principal amount of the
33issue, but not to exceed five thousand dollars ($5,000) for any one
34issue.
35The bonds shall be legal investments for all trust funds, for the
36funds of all insurance companies, commercial banks, savings
37banks, trust companies, the state school funds, and for any funds
38which may be invested in
bonds of cities, cities and counties,
39counties, school districts, or municipalities in the state.
Section 21065 of the Water Code is amended and
2renumbered to read:
[21605.]
(a) Notwithstanding any other provision of law,
5subdivision (b) applies to districts in which directors are elected
6by divisions.
7(b) The board of directors shall, by resolution, adjust the
8boundaries of any divisions pursuant to Chapter 8 (commencing
9with Section 22000) of Division 21 of the Elections Code.
Section 21562.5 of the Water Code, as added by
11Section 3 of Chapter 1134 of the Statutes of 1994, is repealed.
(a) This section applies to the Alta Irrigation District.
13(b) Notwithstanding Section 21550, the board of directors of
14the district may adopt a resolution that increases the number of
15directors and the divisions from which they are elected from five
16to seven in accordance with this section.
17(c) Notwithstanding Section 21383, if the number of district
18directors is increased from five to seven pursuant to this section,
19the number of directors required to constitute a quorum of the
20board and to concur on all questions, except a motion to adjourn
21or a motion to adjourn to a stated time, is four.
22(d) The board of directors shall, by resolution, adjust the
23boundaries of any divisions pursuant to Chapter 3 (commencing
24with Section 35200) of Division 19 of the Elections Code.
25(e) (1) Before considering the adoption of a resolution pursuant
26to subdivision (b), the board of directors shall provide at least 45
27days notice of the public hearing at which the board proposes to
28act on the resolution. The notice of the public hearing shall be
29provided by placing a display advertisement of at least one-eighth
30page in a newspaper of general circulation in each county and
31incorporated city in which territory of the district is located for
32three weeks pursuant to Section 6063 of the Government Code.
33The public hearing shall be held at least 45 days after the first
34publication of the notice.
35(2) The notice required by paragraph (1) shall include, but not
36be limited to, all of the following:
37(A) A statement that the board of directors will consider a
38resolution to change from five to seven the number of directors of
39the district and the divisions from which they are elected.
P835 1(B) The phone number and address of an individual that
2interested persons may contact to receive additional information
3about the resolution.
4(C) The date, time, and location of the public hearing.
5(D) Notice that the resolution will be effective for the district
6elections occurring at least 180 days after adoption of the resolution
7unless a petition protesting the resolution containing the signatures
8of not less than 10 percent of the qualified registered voters of the
9district is filed with the secretary of the district within 30 days
10from the date of the adoption of the resolution in the same manner
11and subject to the same requirements as are set forth in Sections
123754, 3755, and 3755.5 of the Elections Code, except that all
13elections referred to in those sections and officers of the county
14mentioned in those sections shall be construed to refer to general
15or special district elections and to comparable officers of the
16district; and the heading of the proposed referendum shall be in
17substantially the following form: “Referendum Against a
18Resolution Passed by the Board of Directors of the Alta Irrigation
19District Changing From Five to Seven the Number of Directors
20of the District and the Divisions From Which They Are Elected.”
21(f) This section shall become operative only if Assembly Bill
222536 of the 1993-94 Regular Session is enacted and becomes
23operative.
The heading of Article 5 (commencing with Section
2536459) of Chapter 6 of Part 6 of Division 13 of the Water Code is
26repealed.
27
Section 37921 of the Water Code is amended to
31read:
The board may adopt ordinances for the purpose of
33regulating, conserving, managing, and controlling the use and
34extraction of groundwater within the territory of the district. All
35ordinances shall be adopted, after noticed public hearingsbegin insert,end insert by a
36majority vote of the board. Notice of the adoption of all ordinances
37shall be given. The ordinances of the district shall become effective
38on the 31st day after adoption except that the board may, by the
39vote of at least four members of the board, dispense with notice
40of public hearing and adopt an emergency ordinance that shall
P836 1become effective immediately upon adoption, if the board
2determines that the public health, safety, or welfare so requires.
Section 37954 of the Water Code is amended to
4read:
The district may, by ordinance, require the operator of
6each extraction facility to file semiannually, or more frequently,
7with the district, a groundwater extraction statement that contains,
8but is not limited to, the following information:
9(1)
end delete
10begin insert(a)end insert Total extraction in acre-feet of water from the extraction
11facility for the preceding groundwater extraction statement period.
12(2)
end delete13begin insert(b)end insert The static groundwater level for the extraction facility.
14(3)
end delete15begin insert(c)end insert A description of the location of the extraction facility.
16(4)
end delete
17begin insert(d)end insert The crop types or other uses and the
acreage served by the
18extraction facility.
19(5)
end delete
20begin insert(e)end insert The method of measuring or computing groundwater
21extraction.
22(6)
end delete
23begin insert(f)end insert Other information deemed reasonable and necessary by the
24board to meet the purposes of this act.
The heading of Article 1 (commencing with Section
2642500) of Chapter 3 of Part 5 of Division 14 of the Water Code is
27repealed.
28
Section 73502 of the Water Code is amended to
32read:
(a) The city, on or before February 1, 2003, shall adopt
34the program of capital improvement projects designed to restore
35and improve the bay area regional water system that are described
36in the capital improvement program report prepared by the San
37Francisco Public Utilities Commission dated February 25, 2002.
38A copy of the program shall be submitted, on or before March 1,
392003, to the Statebegin delete Department of Public Health.end deletebegin insert Water Resources
40Control Board.end insert The program shall include a schedule for the
P837 1completion of design and award of contract, and commencement
2and completion of construction of each described project. The
3schedule shall require
that projects representing 50 percent of the
4total program cost be completed on or before 2010 and that projects
5representing 100 percent of the total program cost be completed
6on or before 2015. The program shall also contain a financing plan.
7The city shall review and update the program, as necessary, based
8on changes in the schedule set forth in the plan adopted pursuant
9to subdivision (d).
10(b) The plan shall require completion of the following projects:
|
Project |
Location |
Project |
|
1. Irvington Tunnel Alternative |
Alameda/Santa |
9970 |
|
2. Crystal Springs Pump Station |
San Mateo County |
201671 |
|
3. BDPL 1 & 2-Repair of |
Alameda/San |
99 |
|
4. BDPL Pipeline Upgrades at |
Alameda County |
128 |
|
5. Calaveras Fault Crossing |
Alameda County |
9897 |
|
6. Crystal Springs Bypass |
San Mateo County |
9891 |
|
7. BDPL Cross Connections 3 & |
Alameda/Santa |
202339 |
|
8. Conveyance Capacity West of |
Alameda/Santa |
201441 |
|
9. Calaveras Dam Seismic |
Alameda County |
202135 |
36(c) The city shall submit a report to the Joint Legislative Audit
37Committee, the Alfred E. Alquist Seismic Safety Commission,
38and the Statebegin delete Department of Public Health,end deletebegin insert Water Resources
39Control Board,end insert on or before September 1 of each year, describing
40the progress made on the implementation of
the capital
P838 1improvement program for the bay area regional water system
2during the previous fiscal year. The city shall identify in the report
3any project that is behind schedule, and, for each project so
4identified, shall describe the city’s plan and timeline for either
5making up the delay or adopting a revised schedule pursuant to
6subdivision (d).
7(d) (1) The city may determine that completion dates for
8projects contained in the capital improvement program adopted
9pursuant to subdivision (a), including those projects described in
10subdivision (b), should be delayed or that different projects should
11be constructed.
12(2) The city shall provide written notice, not less than 30 days
13before the date of a meeting of the city agency responsible for
14management of the bay area regional water system, that a change
15in the program is to be considered. The notice shall
include
16information about the reason for the proposed change and the
17availability of materials related to the proposed change. All bay
18area wholesale customers shall be permitted to testify or otherwise
19submit comments at the meeting.
20(3) If the city adopts a change in the program that deletes one
21or more projects from the program, or postpones the scheduled
22completion dates, the city shall promptly furnish a copy of that
23change and the reasons for that change to the Statebegin delete Department of begin insert Water Resources Control Boardend insert and the Alfred E.
24Public Healthend delete
25Alquist Seismic Safety Commission. The Statebegin delete Department of begin insert
Water Resources Control Boardend insert and the Alfred E.
26Public Healthend delete
27Alquist Seismic Safety Commission shall each submit written
28comments with regard to the significance of that change with
29respect to public health and safety to the city and the Joint
30Legislative Audit Committee not later than 120 days after the date
31on which those entities received notice of that change.
Section 213.5 of the Welfare and Institutions Code
33 is amended to read:
(a) After a petition has been filed pursuant to Section
35311 to declare a child a dependent child of the juvenile court, and
36until the time that the petition is dismissed or dependency is
37terminated, upon application in the manner provided by Section
38527 of the Code of Civil Procedure or in the manner provided by
39Section 6300 of the Family Code, if related to domestic violence,
40the juvenile court has exclusive jurisdiction to issue ex parte orders
P839 1(1) enjoiningbegin delete anyend deletebegin insert aend insert person from molesting, attacking, striking,
2stalking, threatening, sexually assaulting, battering, harassing,
3telephoning, including, but not limited to, making annoying
4
telephone calls as described in Section 653m of the Penal Code,
5destroying the personal property, contacting, either directly or
6indirectly, by mail or otherwise, coming within a specified distance
7of, or disturbing the peace of the child or any other child in the
8household; and (2) excludingbegin delete anyend deletebegin insert aend insert person from the dwelling of
9the person who has care, custody, and control of the child. A court
10may also issue an ex parte order enjoiningbegin delete anyend deletebegin insert aend insert person from
11molesting, attacking, striking, stalking, threatening, sexually
12assaulting, battering, harassing, telephoning, including, but not
13limited to, making annoying telephone calls as
described in Section
14653m of the Penal Code, destroying the personal property,
15contacting, either directly or indirectly, by mail or otherwise,
16coming within a specified distance of, or disturbing the peace of
17any parent, legal guardian, or current caretaker of the child,
18regardless of whether the child resides with that parent, legal
19guardian, or current caretaker, upon application in the manner
20provided by Section 527 of the Code of Civil Procedure or, if
21related to domestic violence, in the manner provided by Section
226300 of the Family Code. A court may also issue an ex parte order
23enjoiningbegin delete anyend deletebegin insert aend insert person from molesting, attacking, striking, stalking,
24threatening, sexually assaulting, battering, harassing, telephoning,
25including, but not limited to, making annoying telephone calls as
26described in Section 653m of the
Penal Code, destroying the
27personal property, contacting, either directly or indirectly, by mail
28or otherwise, coming within a specified distance of, or disturbing
29the peace of the child’s current or former social worker or court
30appointed special advocate, upon application in the manner
31provided by Section 527 of the Code of Civil Procedure.
32(b) After a petition has been filed pursuant to Section 601 or
33602 to declare a child a ward of the juvenile court, and until the
34time that the petition is dismissed or wardship is terminated, upon
35application in the manner provided by Section 527 of the Code of
36Civil Procedure or, if related to domestic violence, in the manner
37provided by Section 6300 of the Family Code, the juvenile court
38may issue ex parte orders (1) enjoiningbegin delete anyend deletebegin insert aend insert
person from
39molesting, attacking, striking, stalking, threatening, sexually
40assaulting, battering, harassing, telephoning, including, but not
P840 1limited to, making annoying telephone calls as described in Section
2653m of the Penal Code, destroying the personal property,
3contacting, either directly or indirectly, by mail or otherwise,
4coming within a specified distance of, or disturbing the peace of
5the child or any other child in the household; (2) excludingbegin delete anyend deletebegin insert aend insert
6 person from the dwelling of the person who has care, custody, and
7control of the child; or (3) enjoining the child from contacting,
8threatening, stalking, or disturbing the peace of any person the
9court finds to be at risk from the conduct of the child, or with whom
10association would be detrimental to the child. A court may also
11issue an ex parte
order enjoiningbegin delete anyend deletebegin insert
aend insert person from molesting,
12attacking, striking, stalking, threatening, sexually assaulting,
13battering, harassing, telephoning, including, but not limited to,
14making annoying telephone calls as described in Section 653m of
15the Penal Code, destroying the personal property, contacting, either
16directly or indirectly, by mail or otherwise, coming within a
17specified distance of, or disturbing the peace ofbegin delete anyend deletebegin insert aend insert parent, legal
18guardian, or current caretaker of the child, regardless of whether
19the child resides with that parent, legal guardian, or current
20caretaker, upon application in the manner provided by Section 527
21of the Code of Civil Procedure or, if related to domestic violence,
22in the manner provided by Section 6300 of the Family Code. A
23court may also issue an ex parte order
enjoiningbegin delete anyend deletebegin insert
aend insert person from
24molesting, attacking, striking, stalking, threatening, sexually
25assaulting, battering, harassing, telephoning, including, but not
26limited to, making annoying telephone calls as described in Section
27653m of the Penal Code, destroying the personal property,
28contacting, either directly or indirectly, by mail or otherwise,
29coming within a specified distance of, or disturbing the peace of
30the child’s current or former probation officer or court appointed
31special advocate, upon application in the manner provided by
32Section 527 of the Code of Civil Procedure.
33(c) If a temporary restraining order is granted without notice,
34the matter shall be made returnable on an order requiring cause to
35be shown why the order should not be granted, on the earliest day
36that the business of the court will permit, but not later than 21 days
37or, if good cause appears to the court, 25 days from the date the
38temporary
restraining order is granted. The court may, on the
39motion of the person seeking the restraining order, or on its own
40motion, shorten the time for service of the order to show cause on
P841 1the person to be restrained. The court may, upon its own motion
2or the filing of a declaration by the person seeking the restraining
3order, find that the person to be restrained could not be served
4within the time required by law and reissue an order previously
5issued and dissolved by the court for failure to serve the person to
6be restrained. The reissued order shall remain in effect until the
7date set for the hearing. The reissued order shall state on its face
8the date of expiration of the order. Any hearing pursuant to this
9section may be held simultaneously with any regularly scheduled
10hearings held in proceedings to declare a child a dependent child
11or ward of the juvenile court pursuant to Section 300, 601, or 602,
12or subsequent hearings regarding the dependent child or ward.
13(d) (1) The juvenile court may issue, upon notice and a hearing,
14any of the orders set forth in subdivisions (a), (b), and (c).begin delete Anyend deletebegin insert Aend insert
15 restraining order granted pursuant to this subdivision shall remain
16in effect, in the discretion of the court, no more than three years,
17unless otherwise terminated by the court, extended by mutual
18consent of all parties to the restraining order, or extended by further
19order of the court on the motion ofbegin delete anyend deletebegin insert aend insert party to the restraining
20order.
21(2) If an
action is filed for the purpose of terminating or
22modifying a protective order prior to the expiration date specified
23in the order by a party other than the protected party, the party
24who is protected by the order shall be given notice, pursuant to
25subdivision (b) of Section 1005 of the Code of Civil Procedure,
26of the proceeding by personal service or, if the protected party has
27satisfied the requirements of Chapter 3.1 (commencing with
28Section 6205) of Division 7 of Title 1 of the Government Code,
29by service on the Secretary of State. If the party who is protected
30by the order cannot be notified prior to the hearing for modification
31or termination of the protective order, the juvenile court shall deny
32the motion to modify or terminate the order without prejudice or
33continue the hearing until the party who is protected can be
34properly noticed and may, upon a showing of good cause, specify
35another method for service of process that is reasonably designed
36to afford actual notice to the protected party. The
protected party
37may waive his or her right to notice if he or she is physically
38present and does not challenge the sufficiency of the notice.
39(e) (1) The juvenile court may issue an order made pursuant to
40subdivision (a), (b), or (d) excluding a person from a residence or
P842 1dwelling. This order may be issued for the time and on the
2conditions that the court determines, regardless of which party
3holds legal or equitable title or is the lessee of the residence or
4dwelling.
5(2) The court may issue an order under paragraph (1) only on
6a showing of all of the following:
7(A) Facts sufficient for the court to ascertain that the party who
8will stay in the dwelling has a right under color of law to possession
9of the premises.
10(B) That the
party to be excluded has assaulted or threatens to
11assault the other party or any other person under the care, custody,
12and control of the other party, orbegin delete anyend deletebegin insert aend insert minor child of the parties
13or of the other party.
14(C) That physical or emotional harm would otherwise result to
15the other party, tobegin delete anyend deletebegin insert aend insert person under the care, custody, and control
16of the other party, or tobegin delete anyend deletebegin insert aend insert minor
child of the parties or of the
17other party.
18(f) begin deleteAny end deletebegin insertAn end insertorder issued pursuant to subdivision (a), (b), (c), or
19(d) shall state on its face the date of expiration of the order.
20(g) All data with respect to a juvenile court protective order, or
21extension, modification, or termination thereof, granted pursuant
22to subdivision (a), (b), (c), or (d), shall be transmitted by the court
23or its designee, within one business day, to law enforcement
24personnel by either one of the following methods:
25(1) Transmitting a physical copy of the order to a local law
26enforcement agency authorized by the Department of Justice to
27enter orders into the
California Law Enforcement
28Telecommunications System (CLETS).
29(2) With the approval of the Department of Justice, entering the
30order into CLETS directly.
31(h) begin deleteAny end deletebegin insertA end insertwillful and knowing violation ofbegin delete anyend deletebegin insert anend insert order granted
32pursuant to subdivision (a), (b), (c), or (d)begin delete shall beend deletebegin insert isend insert a
33misdemeanor punishable under Section
273.65 of the Penal Code.
34(i) A juvenile court restraining order related to domestic violence
35issued by a court pursuant to this section shall be issued on forms
36adopted by the Judicial Councilbegin delete of Californiaend delete and that have been
37approved by the Department of Justice pursuant to subdivision (i)
38of Section 6380 of the Family Code. However, the fact that an
39order issued by a court pursuant to this section was not issued on
40forms adopted by the Judicial Council and approved by the
P843 1Department of Justice shall not, in and of itself, make the order
2unenforceable.
3(j) (1) Prior to a hearing on the issuance or denial of an order
4under this part, a search shall be conducted as described in
5subdivision (a) of Section 6306 of the Family Code.
6(2) Prior to deciding whether to issue an order under this part,
7the court shall consider the following information obtained pursuant
8to a search conducted under paragraph (1):begin delete anyend deletebegin insert aend insert conviction for a
9violent felony specified in Section 667.5 of the Penal Code or a
10serious felony specified in Section 1192.7 of the Penal Code;begin delete anyend delete
11begin insert aend insert misdemeanor conviction involving domestic violence, weapons,
12or other violence;begin delete anyend deletebegin insert
anend insert outstanding warrant; parole or probation
13status;begin delete anyend deletebegin insert aend insert prior restraining order; andbegin delete anyend deletebegin insert aend insert violation of a prior
14restraining order.
15(3) (A) If the results of the search conducted pursuant to
16paragraph (1) indicate that an outstanding warrant exists against
17the subject of the search, the court shall order the clerk of the court
18to immediately notify, by the most effective means available,
19appropriate law enforcement officials ofbegin delete anyend delete
information obtained
20through the search that the court determines is appropriate. The
21law enforcement officials notified shall take all actions necessary
22to executebegin delete anyend delete outstanding warrants or any other actions, as
23appropriate and as soon as practicable.
24(B) If the results of the search conducted pursuant to paragraph
25(1) indicate that the subject of the search is currently on parole or
26probation, the court shall order the clerk of the court to immediately
27notify, by the most effective means available, the appropriate parole
28or probation officer ofbegin delete anyend delete information obtained through the search
29that the court determines is appropriate. The parole or probation
30officer notified shall take all actions necessary to revoke any parole
31or probation, or any other actions, with
respect to the subject
32person, as appropriate and as soon as practicable.
33(k) Upon makingbegin delete anyend deletebegin insert anend insert order for custody or visitation pursuant
34to this section, the court shall follow the procedures specified in
35subdivisions (c) and (d) of Section 6323 of the Family Code.
Section 258 of the Welfare and Institutions Code is
37amended to read:
(a) Upon a hearing conducted in accordance with Section
39257, and upon either an admission by the minor of the commission
40of a violation charged, or a finding that the minor did in fact
P844 1commit the violation, the judge, referee, or juvenile hearing officer
2may do any of the following:
3(1) Reprimand the minor and take no further action.
4(2) Direct that the probation officer undertake a program of
5supervision of the minor for a period not to exceed six months, in
6addition to or in place of the following orders.
7(3) Order that the minor pay a fine up to the amount that an
8adult would pay for the same violation, unless the violation is
9otherwise
specified within this section, in which case the fine shall
10not exceed two hundred fifty dollars ($250). This fine may be
11levied in addition to or in place of the following orders and the
12court may waive any or all of this fine, if the minor is unable to
13pay. In determining the minor’s ability to pay, the courtbegin delete mayend deletebegin insert shallend insert
14 not consider the ability of the minor’s family to pay.
15(4) Subject to the minor’s right to a restitution hearing, order
16that the minor pay restitution to the victim, in lieu of all or a portion
17of the fine specified in paragraph (3). The total dollar amount of
18the fine, restitution, and any program fees ordered pursuant to
19paragraph (9)begin delete mayend deletebegin insert
shallend insert not exceed the maximum amount which
20may be ordered pursuant to paragraph (3). This paragraphbegin delete mayend delete
21begin insert shallend insert not be construed to limit the right to recover damages, less
22any amount actually paid in restitution, in a civil action.
23(5) Order that the driving privileges of the minor be suspended
24or restricted as provided in the Vehicle Code or, notwithstanding
25Section 13203 of the Vehicle Code or any other provision of law,
26when the Vehicle Code does not provide for the suspension or
27restriction of driving privileges, that, in addition to any other order,
28the driving privileges of the minor be suspended or restricted for
29a period of not to exceed 30 days.
30(6) In the case of a traffic related offense, order the minor to
31attend a licensed traffic school, or other court approved program
32of traffic school instruction pursuant to Chapter 1.5 (commencing
33with Section 11200) of Division 5 of the Vehicle Code, to be
34completed by the juvenile within 60 days of the court order.
35(7) Order that the minor produce satisfactory evidence that the
36vehicle or its equipment has been made to conform with the
37requirements of the Vehicle Code pursuant to Section 40150 of
38the Vehicle Code if the violation involved an equipment violation.
39(8) Order that the minor perform community service work in a
40public entity or any private nonprofit entity, for not more than 50
P845 1hours over a period of 60 days, during times other than his or her
2hours of school attendance or employment. Work performed
3pursuant to this paragraphbegin delete mayend deletebegin insert
shallend insert not exceed 30 hours during
4any 30-day period. The timeframes established by this paragraph
5begin delete mayend deletebegin insert shallend insert not be modified except in unusual cases where the
6interests of justice would best be served. When the order to work
7is made by a referee or a juvenile hearing officer, it shall be
8approved by a judge of the juvenile court.
9Forbegin delete theend delete purposes of this paragraph, a judge, referee, or juvenile
10hearing officerbegin delete mayend deletebegin insert
shallend insert not, without the consent of the minor,
11order the minor to perform work with a private nonprofit entity
12that is affiliated with any religion.
13(9) In the case of a misdemeanor, order that the minor participate
14in and complete a counseling or educational program, or, if the
15offense involved a violation of a controlled substance law, a drug
16treatment program, if those programs are available.begin delete Any feesend deletebegin insert Feesend insert
17 for participation shall be subject to the right to a hearing as the
18minor’s ability to pay andbegin delete mayend deletebegin insert shallend insert not, together with
any fine or
19restitution order, exceed the maximum amount that may be ordered
20pursuant to paragraph (3).
21(10) Require that the minor attend a school program without
22unexcused absence.
23(11) If the offense is a misdemeanor committed between 10
24p.m. and 6 a.m., require that the minor be at his or her legal
25residence at hours to be specified by the juvenile hearing officer
26between the hours of 10 p.m. and 6 a.m., except for a medical or
27other emergency, unless the minor is accompanied by his or her
28parent, guardian, or other person in charge of the minor. The
29maximum length of an order made pursuant to this paragraph shall
30be six months from the effective date of the order.
31(12) Make any or all of the following orders with respect to a
32violation of the Fish and Game Code which is not charged as a
33felony:
34(A) That the fishing or hunting license involved be suspended
35or restricted.
36(B) That the minor work in a park or conservation area for a
37total of not to exceed 20 hours over a period not to exceed 30 days,
38during times other than his or her hours of school attendance or
39employment.
P846 1(C) That the minor forfeit, pursuant to Section 12157 of the Fish
2and Game Code, any device or apparatus designed to be, and
3capable of being, used to take birds, mammals, fish, reptiles, or
4amphibia andbegin delete whichend deletebegin insert thatend insert was used in committing the violation
5charged. The judge, referee, or juvenile hearing officer shall, if
6the minor committed an offensebegin delete whichend deletebegin insert
thatend insert
is punishable under
7Section 12008 of the Fish and Game Code, order the device or
8apparatus forfeited pursuant to Section 12157 of the Fish and Game
9Code.
10(13) If the violation charged is of an ordinance of a city, county,
11or local agency relating to loitering, curfew, or fare evasion on a
12public transportation system, as defined by Section 99211 of the
13Public Utilities Code, or is a violation of Section 640 or 640a of
14the Penal Code, make the order that the minor shall perform
15community service for a total time not to exceed 20 hours over a
16period not to exceed 30 days, during times other than his or her
17hours of school attendance or employment.
18(b) If the minor is before the court on the basis of truancy, as
19described in subdivision (b) of Section 601, all of the following
20procedures and limitations shall apply:
21(1) The judge, referee, or juvenile hearing officer shall not
22proceed with a hearing unless both of the following have been
23provided to the court:
24(A) Evidence that the minor’s school has undertaken the actions
25specified in subdivisions (a), (b), and (c) of Section 48264.5 of the
26Education Code. If the school district does not have an attendance
27review board, as described in Section 48321 of the Education Code,
28the minor’s school is not required to provide evidence to the court
29of any actions the school has undertaken that demonstrate the
30intervention of a school attendance review board.
31(B) The available record of previous attempts to address the
32minor’s truancy.
33(2) The court is encouraged to set the hearing outside of school
34hours, so as to avoid causing the minor to miss additional school
35time.
36(3) Pursuant to paragraph (1) of subdivision (a) of Section 257,
37the minor and his or her parents shall be advised of the minor’s
38right to refuse consent to a hearing conducted upon a written notice
39to appear.
P847 1(4) The minor’s parents shall be permitted to participate in the
2hearing.
3(5) The judge, referee, or juvenile hearing officer may continue
4the hearing to allow the minor the opportunity to demonstrate
5improved attendance before imposing any of the orders specified
6in paragraph (6). Upon demonstration of improved attendance, the
7court may dismiss the case.
8(6) Upon a finding that the minor violated subdivision (b) of
9Section 601, the judge, referee, or juvenile hearing officer shall
10direct his or her orders at improving the minor’s school attendance.
11
The judge, referee, or juvenile hearing officer may do any of the
12following:
13(A) Order the minor to perform community service work, as
14described in Section 48264.5 of the Education Code, which may
15be performed at the minor’s school.
16(B) Order the payment of a fine by the minor of not more than
17fifty dollars ($50), for which a parent or legal guardian of the minor
18may be jointly liable. The fine described in this subparagraph shall
19not be subject to Section 1464 of the Penal Code or additional
20penalty pursuant to any other law. The minor, at his or her
21discretion, may perform community service, as described in
22subparagraph (A), in lieu of any fine imposed under this
23subparagraph.
24(C) Order a combination of community service work described
25in subparagraph (A) and payment of a portion of the fine described
26in
subparagraph (B).
27(D) Restrict driving privileges in the manner set forth in
28paragraph (5) of subdivision (a). The minor may request removal
29of the driving restrictions if he or she provides proof of school
30attendance, high school graduation, GED completion, or enrollment
31in adult education, a community college, or a trade program. Any
32driving restriction shall be removed at the time the minor attains
3318 years of age.
34(c) (1) The judge, referee, or juvenile hearing officer shall retain
35jurisdiction of the case until all orders made under this section
36have been fully complied with.
37(2) If a minor is before the judge, referee, or juvenile hearing
38officer on the basis of truancy, jurisdiction shall be terminated
39upon the minor attaining 18 years of age.
Section 300 of the Welfare and Institutions Code is
2amended to read:
begin deleteAny end deletebegin insertA end insertchild who comes within any of the following
4descriptions is within the jurisdiction of the juvenile court which
5may adjudge that person to be a dependent child of the court:
6(a) The child has suffered, or there is a substantial risk that the
7child will suffer, serious physical harm inflicted nonaccidentally
8upon the child by the child’s parent or guardian. Forbegin delete theend delete purposes
9of this subdivision, a court may find there is a substantial risk of
10serious future injury based on the manner in which a less serious
11injury
was inflicted, a history of repeated inflictions of injuries on
12the child or the child’s siblings, or a combination of these and other
13actions by the parent or guardianbegin delete whichend deletebegin insert
thatend insert indicate the child is
14at risk of serious physical harm. For purposes of this subdivision,
15“serious physical harm” does not include reasonable and
16age-appropriate spanking to the buttocksbegin delete whereend deletebegin insert ifend insert there is no
17evidence of serious physical injury.
18(b) (1) The child has suffered, or there is a substantial risk
19that the child will suffer, serious physical harm or illness, as a
20result of the failure or inability of his or her parent or guardian to
21adequately supervise or protect the child, or the willful or negligent
22failure of the child’s parent or guardian to adequately supervise
23or protect the child from the conduct of the custodian with whom
24the child has been left, or by the willful or
negligent failure of the
25parent or guardian to provide the child with adequate food,
26clothing, shelter, or medical treatment, or by the inability of the
27parent or guardian to provide regular care for the child due to the
28parent’s or guardian’s mental illness, developmental disability, or
29substance abuse.begin delete Noend deletebegin insert Aend insert child shallbegin insert notend insert be found to be a person
30described by this subdivision solely due to the lack of an
31emergency shelter for the family. Whenever it is alleged that a
32child comes within the jurisdiction of the court on the basis of the
33parent’s or guardian’s willful failure to provide adequate medical
34treatment or specific decision to provide spiritual treatment through
35prayer, the court shall give deference to
the parent’s or guardian’s
36medical treatment, nontreatment, or spiritual treatment through
37prayer alone in accordance with the tenets and practices of a
38recognized church or religious denomination, by an accredited
39practitioner thereof, and shall not assume jurisdiction unless
40necessary to protect the child from suffering serious physical harm
P849 1or illness. In making its determination, the court shall consider (1)
2the nature of the treatment proposed by the parent or guardian, (2)
3the risks to the child posed by the course of treatment or
4nontreatment proposed by the parent or guardian, (3) the risk, if
5any, of the course of treatment being proposed by the petitioning
6agency, and (4) the likely success of the courses of treatment or
7nontreatment proposed by the parent or guardian and agency. The
8child shall continue to be a dependent child pursuant to this
9subdivision only so long as is necessary to protect the child from
10risk of suffering serious physical harm or illness.
11(2) The Legislature finds and declares that a child who is
12sexually trafficked, as described in Section 236.1 of the Penal
13Code, or who receives food or shelter in exchange for, or who is
14paid to perform, sexual acts described in Section 236.1 or 11165.1
15of the Penal Code, and whose parent or guardian failed to, or was
16unable to, protect the child, is within the description of this
17subdivision, and that this finding is declaratory of existing law.
18These children shall be known as commercially sexually exploited
19children.
20(c) The child is suffering serious emotional damage, or is at
21substantial risk of suffering serious emotional damage, evidenced
22by severe anxiety, depression, withdrawal, or untoward aggressive
23behavior toward self or others, as a result of the conduct of the
24parent or guardian or who has no parent or guardian capable of
25providing appropriate care.begin delete Noend deletebegin insert
Aend insert child shallbegin insert notend insert be found to be a
26person described by this subdivision if the willful failure of the
27parent or guardian to provide adequate mental health treatment is
28based on a sincerely held religious belief and if a less intrusive
29judicial intervention is available.
30(d) The child has been sexually abused, or there is a substantial
31risk that the child will be sexually abused, as defined in Section
3211165.1 of the Penal Code, by his or her parent or guardian or a
33member of his or her household, or the parent or guardian has
34failed to adequately protect the child from sexual abuse when the
35parent or guardian knew or reasonably should have known that
36the child was in danger of sexual abuse.
37(e) The child is under the age of five years
and has suffered
38severe physical abuse by a parent, or by any person known by the
39parent, if the parent knew or reasonably should have known that
40the person was physically abusing the child. For the purposes of
P850 1this subdivision, “severe physical abuse” means any of the
2following: any single act of abuse which causes physical trauma
3of sufficient severity that, if left untreated, would cause permanent
4physical disfigurement, permanent physical disability, or death;
5any single act of sexual abuse which causes significant bleeding,
6deep bruising, or significant external or internal swelling; or more
7than one act of physical abuse, each of which causes bleeding,
8deep bruising, significant external or internal swelling, bone
9fracture, or unconsciousness; or the willful, prolonged failure to
10provide adequate food. A childbegin delete mayend deletebegin insert shallend insert
not be removed from
11the physical custody of his or her parent or guardian on the basis
12of a finding of severe physical abuse unless the social worker has
13made an allegation of severe physical abuse pursuant to Section
14332.
15(f) The child’s parent or guardian caused the death of another
16child through abuse or neglect.
17(g) The child has been left without any provision for support;
18physical custody of the child has been voluntarily surrendered
19pursuant to Section 1255.7 of the Health and Safety Code and the
20child has not been reclaimed within the 14-day period specified
21in subdivisionbegin delete (e)end deletebegin insert (g)end insert of that section; the child’s parent has been
22incarcerated or institutionalized and cannot
arrange for the care of
23the child; or a relative or other adult custodian with whom the child
24resides or has been left is unwilling or unable to provide care or
25support for the child, the whereabouts of the parent are unknown,
26and reasonable efforts to locate the parent have been unsuccessful.
27(h) The child has been freed for adoption by one or both parents
28for 12 months by either relinquishment or termination of parental
29rights or an adoption petition has not been granted.
30(i) The child has been subjected to an act or acts of cruelty by
31the parent or guardian or a member of his or her household, or the
32parent or guardian has failed to adequately protect the child from
33an act or acts of cruelty when the parent or guardian knew or
34reasonably should have known that the child was in danger of
35being subjected to an act or acts of cruelty.
36(j) The child’s sibling has been abused or neglected, as defined
37in subdivision (a), (b), (d), (e), or (i), and there is a substantial risk
38that the child will be abused or neglected, as defined in those
39subdivisions. The court shall consider the circumstances
40surrounding the abuse or neglect of the sibling, the age and gender
P851 1of each child, the nature of the abuse or neglect of the sibling, the
2mental condition of the parent or guardian, and any other factors
3the court considers probative in determining whether there is a
4substantial risk to the child.
5It is the intent of the Legislature thatbegin delete nothing inend delete this sectionbegin insert notend insert
6 disrupt the family unnecessarily or intrude inappropriately into
7family life, prohibit the use of
reasonable methods of parental
8discipline, or prescribe a particular method of parenting. Further,
9begin delete nothing inend delete this section isbegin insert notend insert intended to limit the offering of
10voluntary services to those families in need of assistance but who
11do not come within the descriptions of this section. To the extent
12that savings accrue to the state from child welfare services funding
13obtained as a result of the enactment of the act that enacted this
14section, those savings shall be used to promote services which
15support family maintenance and family reunification plans, such
16as client transportation, out-of-home respite care, parenting
17training, and the provision of temporary or emergency in-home
18caretakers and persons teaching and demonstrating homemaking
19skills. The Legislature further declares that a physical disability,
20such as
blindness or deafness, is no bar to the raising of happy and
21well-adjusted children and that a court’s determination pursuant
22to this section shall center upon whether a parent’s disability
23prevents him or her from exercising care and control. The
24Legislature further declares that a child whose parent has been
25adjudged a dependent child of the court pursuant to this section
26shall not be considered to be at risk of abuse or neglect solely
27because of the age, dependent status, or foster care status of the
28parent.
29As used in this section, “guardian” means the legal guardian of
30the child.
Section 319 of the Welfare and Institutions Code is
32amended to read:
(a) At the initial petition hearing, the court shall examine
34the child’s parents, guardians, or other persons having relevant
35knowledge and hear the relevant evidence as the child, the child’s
36parents or guardians, the petitioner, or their counsel desires to
37present. The court may examine the child, as provided in Section
38350.
39(b) The social worker shall report to the court on the reasons
40why the child has been removed from the parent’s physical custody,
P852 1the need, if any, for continued detention, the available services
2and the referral methods to those services that could facilitate the
3return of the child to the custody of the child’s parents or guardians,
4and whether there are any relatives who are able and willing to
5take temporary physical custody of the child.
The court shall order
6the release of the child from custody unless a prima facie showing
7has been made that the child comes within Section 300, the court
8finds that continuance in the parent’s or guardian’s home is
9contrary to the child’s welfare, and any of the following
10circumstances exist:
11(1) There is a substantial danger to the physical health of the
12child or the child is suffering severe emotional damage, and there
13are no reasonable means by which the child’s physical or emotional
14health may be protected without removing the child from the
15parent’s or guardian’s physical custody.
16(2) There is substantial evidence that a parent, guardian, or
17custodian of the child is likely to flee the jurisdiction of the court.
18(3) The child has left a placement in which he or she was placed
19by the juvenile court.
20(4) The child indicates an unwillingness to return home, if the
21child has been physically or sexually abused by a person residing
22in the home.
23(c) If the matter is continued pursuant to Section 322 or for any
24other reason, the court shall find that the continuance of the child
25in the parent’s or guardian’s home is contrary to the child’s welfare
26at the initial petition hearing or order the release of the child from
27custody.
28(d) (1) The court shall also make a determination on the record,
29referencing the social worker’s report or other evidence relied
30upon, as to whether reasonable efforts were made to prevent or
31eliminate the need for removal of the child from his or her home,
32pursuant to subdivision (b) of Section 306, and whether there are
33available services that would prevent the need for
further detention.
34Services to be considered for purposes of making this determination
35are case management, counseling, emergency shelter care,
36emergency in-home caretakers, out-of-home respite care, teaching
37and demonstrating homemakers, parenting training, transportation,
38and any other child welfare services authorized by the State
39Department of Social Services pursuant to Chapter 5 (commencing
40with Section 16500) of Part 4 of Division 9. The court shall also
P853 1review whether the social worker has considered whether a referral
2to public assistance services pursuant to Chapter 2 (commencing
3with Section 11200) and Chapter 7 (commencing with Section
414000) of Part 3, Chapter 1 (commencing with Section 17000) of
5Part 5, and Chapter 10 (commencing with Section 18900) of Part
66 of Division 9 would have eliminated the need to take temporary
7custody of the child or would prevent the need for further detention.
8(2) If the child can be returned to the
custody of his or her parent
9or guardian through the provision of those services, the court shall
10place the child with his or her parent or guardian and order that
11the services shall be provided. If the child cannot be returned to
12the physical custody of his or her parent or guardian, the court
13shall determine if there is a relative who is able and willing to care
14for the child, and has been assessed pursuant to paragraph (1) of
15subdivision (d) of Section 309.
16(3) In order to preserve the bond between the child and the
17parent and to facilitate family reunification, the court shall consider
18whether the child can be returned to the custody of his or her parent
19who is enrolled in a certified substance abuse treatment facility
20that allows a dependent child to reside with his or her parent. The
21fact that the parent is enrolled in a certified substance abuse
22treatment facility that allows a dependent child to reside with his
23or her parent shall not
be, for that reason alone, prima facie
24evidence of substantial danger. The court shall specify the factual
25basis for its conclusion that the return of the child to the custody
26of his or her parent would pose a substantial danger or would not
27pose a substantial danger to the physical health, safety, protection,
28or physical or emotional well-being of the child.
29(e) If a court orders a child detained, the court shall state the
30facts on which the decision is based, specify why the initial removal
31was necessary, reference the social worker’s report or other
32evidence relied upon to make its determination whether
33continuance in the home of the parent or legal guardian is contrary
34to the child’s welfare, order temporary placement and care of the
35child to be vested with the county child welfare department pending
36the hearing held pursuant to Section 355 or further order of the
37court, and order services to be provided as soon as possible to
38reunify the
child and his or her family if appropriate.
39(f) (1) If the child is not released from custody, the court may
40order that the child shall be placed in the assessed home of a
P854 1relative, in an emergency shelter or other suitable licensed place,
2in a place exempt from licensure designated by the juvenile court,
3or in the assessed home of a nonrelative extended family member
4as defined in Section 362.7 for a period not to exceed 15 judicial
5days. A runaway and homeless youth shelter licensed by the State
6Department of Social Services pursuant to Section 1502.35 of the
7Health and Safety Code shall not be a placement option pursuant
8to this section.
9(2) As used in this section, “relative” means an adult who is
10related to the child by blood, adoption, or affinity within the fifth
11degree of kinship, including stepparents, stepsiblings, and all
12relatives whose status is
preceded by the words “great,”
13“great-great,” or “grand,” or the spouse of any of these persons,
14even if the marriage was terminated by death or dissolution.
15However, only the following relatives shall be given preferential
16consideration for placement of the child: an adult who is a
17grandparent, aunt, uncle, or sibling of the child.
18(3) The court shall consider the recommendations of the social
19worker based on the assessment pursuant to paragraph (1) of
20subdivision (d) of Section 309 of the relative’s home, including
21the results of a criminal records check and prior child abuse
22allegations, if any, prior to ordering that the child be placed with
23a relative. The court shall order the parent to disclose to the social
24worker the names, residences, and any known identifying
25information of any maternal or paternal relatives of the child. The
26social worker shall initiate the assessment pursuant to Section
27361.3 of any relative to be considered for
continuing placement.
28(g) (1) At the initial hearing upon the petition filed in
29accordance with subdivision (c) of Rule 5.520 of the California
30Rules of Court or anytime thereafter up until the time that the
31minor is adjudged a dependent child of the court or a finding is
32made dismissing the petition, the court may temporarily limit the
33right of the parent or guardian to make educational or
34developmental services decisions for the child and temporarily
35appoint a responsible adult to make educational or developmental
36services decisions for the child if all of the following conditions
37are found:
38(A) The parent or guardian is unavailable, unable, or unwilling
39to exercise educational or developmental services rights for the
40child.
P855 1(B) The county placing agency has made diligent efforts to
2locate and
secure the participation of the parent or guardian in
3educational or developmental services decisionmaking.
4(C) The child’s educational and developmental services needs
5cannot be met without the temporary appointment of a responsible
6adult.
7(2) If the court limits the parent’s educational rights under this
8subdivision, the court shall determine whether there is a responsible
9adult who is a relative, nonrelative extended family member, or
10other adult known to the child and who is available and willing to
11serve as the child’s educational representative before appointing
12an educational representative or surrogate who is not known to the
13child.
14(3) If the court cannot identify a responsible adult to make
15educational decisions for the child and the appointment of a
16surrogate parent, as defined in subdivision (a) of
Section 56050
17of the Education Code, is not warranted, the court may, with the
18input of any interested person, make educational decisions for the
19child. If the child is receiving services from a regional center, the
20provision of any developmental services related to the court’s
21decisionbegin delete mustend deletebegin insert shallend insert be consistent with the child’s individual
22program plan and pursuant to the provisions of the Lanterman
23Developmental Disabilities Services Act (Division 4.5
24(commencing with Section 4500)). If the court cannot identify a
25responsible adult to make developmental services decisions for
26the child, the court may, with the input of any interested person,
27make developmental services decisions for the child. If the court
28makes educational or developmental services decisions for the
29child, the court shall also issue appropriate orders
to ensure that
30every effort is made to identify a responsible adult to make future
31educational or developmental services decisions for the child.
32(4) begin deleteAny end deletebegin insertA end inserttemporary appointment of a responsible adult and
33temporary limitation on the right of the parent or guardian to make
34educational or developmental services decisions for the child shall
35be specifically addressed in the court order.begin delete Anyend deletebegin insert Anend insert order made
36under this section shall expire at the conclusion of the hearing held
37pursuant to Section 361 or upon dismissal of the petition. Upon
38the entering of disposition orders,begin delete anyend delete
additional needed limitation
39on the parent’s or guardian’s educational or developmental services
40rights shall be addressed pursuant to Section 361.
P856 1(5) begin deleteNothing in this section in any way removes end deletebegin insertThis section
2does not remove end insertthe obligation to appoint surrogate parents for
3students with disabilities who are without parental representation
4in special education procedures as required by state and federal
5law, including Section 1415(b)(2) of Title 20 of the United States
6Code, Section 56050 of the Education Code, Section 7579.5 of
7the Government Code, and Rule 5.650 of the California Rules of
8Court.
9(6) If the court appoints a developmental services decisionmaker
10pursuant to this
section, he or she shall have the authority to access
11the child’s information and records pursuant to subdivision (u) of
12Section 4514 and subdivision (y) of Section 5328, and to act on
13the child’s behalf for the purposes of the individual program plan
14process pursuant to Sections 4646, 4646.5, and 4648 and the fair
15hearing process pursuant to Chapter 7 (commencing with Section
164700), and as set forth in the court order.
Section 361.2 of the Welfare and Institutions Code
18 is amended to read:
(a) When a court orders removal of a child pursuant to
20Section 361, the court shall first determine whether there is a parent
21of the child, with whom the child was not residing at the time that
22the events or conditions arose that brought the child within the
23provisions of Section 300, who desires to assume custody of the
24child. If that parent requests custody, the court shall place the child
25with the parent unless it finds that placement with that parent would
26be detrimental to the safety, protection, or physical or emotional
27well-being of the child. The fact that the parent is enrolled in a
28certified substance abuse treatment facility that allows a dependent
29child to reside with his or her parent shall not be, for that reason
30alone, prima facie evidence that placement with that parent would
31be detrimental.
32(b) If the court places the child with that parent it may do any
33of the following:
34(1) Order that the parent become legal and physical custodian
35of the child. The court may also provide reasonable visitation by
36the noncustodial parent. The court shall then terminate its
37jurisdiction over the child. The custody order shall continue unless
38modified by a subsequent order of the superior court. The order
39of the juvenile court shall be filed in any domestic relation
40proceeding between the parents.
P857 1(2) Order that the parent assume custody subject to the
2jurisdiction of the juvenile court and require that a home visit be
3conducted within three months. In determining whether to take
4the action described in this paragraph, the court shall consider any
5concerns that have been raised by the child’s current caregiver
6regarding the
parent. After the social worker conducts the home
7visit and files his or her report with the court, the court may then
8take the action described in paragraph (1),begin insert
paragraphend insert (3), or this
9paragraph. However,begin delete nothing inend delete this paragraph shallbegin insert notend insert be
10interpreted to imply that the court is required to take the action
11described in this paragraph as a prerequisite to the court taking the
12action described in either paragraph (1) or (3).
13(3) Order that the parent assume custody subject to the
14supervision of the juvenile court. In that case the court may order
15that reunification services be provided to the parent or guardian
16from whom the child is being removed, or the court may order that
17services be provided solely to the parent who is assuming physical
18custody in order to allow that parent to retain later custody without
19court supervision, or that services be provided to both parents,
in
20which case the court shall determine, at review hearings held
21pursuant to Section 366, which parent, if either, shall have custody
22of the child.
23(c) The court shall make a finding either in writing or on the
24record of the basis for its determination under subdivisions (a) and
25(b).
26(d) Part 6 (commencing with Section 7950) of Division 12 of
27the Family Codebegin delete shall applyend deletebegin insert appliesend insert to the placement of a child
28pursuant to paragraphs (1) and (2) of subdivision (e).
29(e) When the court orders removal pursuant to Section 361, the
30court shall order the care, custody, control, and conduct of the
31child to be under the supervision of the
social worker who may
32place the child in any of the following:
33(1) The home of a noncustodial parent as described in
34subdivision (a), regardless of the parent’s immigration status.
35(2) The approved home of a relative, regardless of the relative’s
36immigration status.
37(3) The approved home of a nonrelative extended family
38member as defined in Section 362.7.
39(4) The approved home of a resource family as defined in
40Section 16519.5.
P858 1(5) A foster home in which the child has been placed before an
2interruption in foster care, if that placement is in the best interest
3of the child and space is available.
4(6) A suitable licensed
community care facility, except a
5runaway and homeless youth shelter licensed by the State
6Department of Social Services pursuant to Section 1502.35 of the
7Health and Safety Code.
8(7) With a foster family agency to be placed in a suitable
9licensed foster family home or certified family homebegin delete whichend deletebegin insert thatend insert
10 has been certified by the agency as meeting licensing standards.
11(8) A home or facility in accordance with the federal Indian
12Child Welfare Act (25 U.S.C. Sec. 1901 et seq.).
13(9) A child under six years of age may be placed in a community
14care facility licensed as a group home for children, or a temporary
15shelter care facility as
defined in Section 1530.8 of the Health and
16Safety Code, only under any of the following circumstances:
17(A) (i) When a case plan indicates that placement is for purposes
18of providing short term, specialized, and intensive treatment to the
19child, the case plan specifies the need for, nature of, and anticipated
20duration of this treatment, pursuant to paragraph (2) of subdivision
21(c) of Section 16501.1, the facility meets the applicable regulations
22adopted under Section 1530.8 of the Health and Safety Code and
23standards developed pursuant to Section 11467.1 of this code, and
24the deputy director or director of the county child welfare
25department or an assistant chief probation officer or chief probation
26officer of the county probation department has approved the case
27plan.
28(ii) The short term, specialized, and intensive treatment period
29shall not exceed 120 days,
unless the county has made progress
30toward or is actively working toward implementing the case plan
31that identifies the services or supports necessary to transition the
32child to a family setting, circumstances beyond the county’s control
33have prevented the county from obtaining those services or
34supports within the timeline documented in the case plan, and the
35need for additional time pursuant to the case plan is documented
36by the caseworker and approved by a deputy director or director
37of the county child welfare department or an assistant chief
38probation officer or chief probation officer of the county probation
39department.
P859 1(iii) To the extent that placements pursuant to this paragraph
2are extended beyond an initial 120 days, the requirements of
3clauses (i) and (ii)begin delete shallend delete apply to each extension. In addition, the
4deputy director or director of the county child
welfare department
5or an assistant chief probation officer or chief probation officer of
6the county probation department shall approve the continued
7placement no less frequently than every 60 days.
8(B) When a case plan indicates that placement is for purposes
9of providing family reunification services. In addition, the facility
10offers family reunification services that meet the needs of the
11individual child and his or her family, permits parents to have
12reasonable access to their children 24 hours a day, encourages
13extensive parental involvement in meeting the daily needs of their
14children, and employs staff trained to provide family reunification
15services. In addition, one of the following conditions exists:
16(i) The child’s parent is also a ward of the court and resides in
17the facility.
18(ii) The child’s parent is
participating in a treatment program
19affiliated with the facility and the child’s placement in the facility
20facilitates the coordination and provision of reunification services.
21(iii) Placement in the facility is the only alternative that permits
22the parent to have daily 24-hour access to the child in accordance
23with the case plan, to participate fully in meeting all of the daily
24needs of the child, including feeding and personal hygiene, and to
25have access to necessary reunification services.
26(10) (A) A child who is 6 to 12 years of age, inclusive, may be
27placed in a community care facility licensed as a group home for
28children only when a case plan indicates that placement is for
29purposes of providing short term, specialized, and intensive
30treatment for the child, the case plan specifies the need for, nature
31of, and anticipated duration of this treatment,
pursuant to paragraph
32(2) of subdivision (c) of Section 16501.1, and is approved by the
33deputy director or director of the county child welfare department
34or an assistant chief probation officer or chief probation officer of
35the county probation department.
36(B) The short term, specialized, and intensive treatment period
37shall not exceed six months, unless the county has made progress
38or is actively working toward implementing the case plan that
39identifies the services or supports necessary to transition the child
40to a family setting, circumstances beyond the county’s control
P860 1have prevented the county from obtaining those services or
2supports within the timeline documented in the case plan, and the
3need for additional time pursuant to the case plan is documented
4by the caseworker and approved by a deputy director or director
5of the county child welfare department or an assistant chief
6probation officer or chief probation officer of the county
probation
7department.
8(C) To the extent that placements pursuant to this paragraph are
9extended beyond an initial six months, the requirements of
10subparagraphs (A) and (B)begin delete shallend delete apply to each extension. In
11addition, the deputy director or director of the county child welfare
12department or an assistant chief probation officer or chief probation
13officer of the county probation department shall approve the
14continued placement no less frequently than every 60 days.
15(11) begin deleteNothing in this end deletebegin insertThis end insertsubdivision shallbegin insert notend insert
be construed to
16allow a social worker to place any dependent child outside the
17United States, except as specified in subdivision (f).
18(f) (1) A child under the supervision of a social worker pursuant
19to subdivision (e) shall not be placed outside the United States
20prior to a judicial finding that the placement is in the best interest
21of the child, except as required by federal law or treaty.
22(2) The party or agency requesting placement of the child outside
23the United States shall carry the burden of proof and shall show,
24by clear and convincing evidence, that placement outside the
25United States is in the best interest of the child.
26(3) In determining the best interest of the child, the court shall
27consider, but not be limited to, the following factors:
28(A) Placement with a relative.
29(B) Placement of siblings in the same home.
30(C) Amount and nature of any contact between the child and
31the potential guardian or caretaker.
32(D) Physical and medical needs of the dependent child.
33(E) Psychological and emotional needs of the dependent child.
34(F) Social, cultural, and educational needs of the dependent
35child.
36(G) Specific desires of any dependent child who is 12 years of
37age or older.
38(4) If the court finds that a placement outside the United States
39is, by
clear and convincing evidence, in the best interest of the
40child, the court may issue an order authorizing the social worker
P861 1to make a placement outside the United States. A child subject to
2this subdivision shall not leave the United States prior to the
3issuance of the order described in this paragraph.
4(5) For purposes of this subdivision, “outside the United States”
5begin delete shallend deletebegin insert doesend insert not include the lands of any federally recognized
6American Indian tribe or Alaskan Natives.
7(6) This subdivisionbegin delete shallend deletebegin insert doesend insert
not apply to the placement of a
8dependent child with a parent pursuant to subdivision (a).
9(g) (1) If the child is taken from the physical custody of the
10child’s parent or guardian and unless the child is placed with
11relatives, the child shall be placed in foster care in the county of
12residence of the child’s parent or guardian in order to facilitate
13reunification of the family.
14(2) In the event that there are no appropriate placements
15available in the parent’s or guardian’s county of residence, a
16placement may be made in an appropriate place in another county,
17preferably a county located adjacent to the parent’s or guardian’s
18community of residence.
19(3) begin deleteNothing in this end deletebegin insertThis
end insertsection shallbegin insert notend insert be interpreted as
20requiring multiple disruptions of the child’s placement
21corresponding to frequent changes of residence by the parent or
22guardian. In determining whether the child should be moved, the
23social worker shall take into consideration the potential harmful
24effects of disrupting the placement of the child and the parent’s or
25guardian’s reason for the move.
26(4) When it has been determined that it is necessary for a child
27to be placed in a county other than the child’s parent’s or guardian’s
28county of residence, the specific reason the out-of-county
29placement is necessary shall be documented in the child’s case
30plan. If the reason the out-of-county placement is necessary is the
31lack of resources in the sending county to meet the specific needs
32of the child, those specific resource needs
shall be documented in
33the case plan.
34(5) When it has been determined that a child is to be placed out
35of county either in a group home or with a foster family agency
36for subsequent placement in a certified foster family home, and
37the sending county is to maintain responsibility for supervision
38and visitation of the child, the sending county shall develop a plan
39of supervision and visitation that specifies the supervision and
40visitation activities to be performed and specifies that the sending
P862 1county is responsible for performing those activities. In addition
2to the plan of supervision and visitation, the sending county shall
3document information regarding any known or suspected dangerous
4behavior of the child that indicates the child may pose a safety
5concern in the receiving county. Upon implementation of the Child
6Welfare Services Case Management System, the plan of
7supervision and visitation, as well as information regarding any
8known or
suspected dangerous behavior of the child, shall be made
9available to the receiving county upon placement of the child in
10the receiving county. If placement occurs on a weekend or holiday,
11the information shall be made available to the receiving county on
12or before the end of the next business day.
13(6) When it has been determined that a child is to be placed out
14of county and the sending county plans that the receiving county
15shall be responsible for the supervision and visitation of the child,
16the sending county shall develop a formal agreement between the
17sending and receiving counties. The formal agreement shall specify
18the supervision and visitation to be provided the child, and shall
19specify that the receiving county is responsible for providing the
20supervision and visitation. The formal agreement shall be approved
21and signed by the sending and receiving counties prior to placement
22of the child in the receiving county. In addition, upon
completion
23of the case plan, the sending county shall provide a copy of the
24completed case plan to the receiving county. The case plan shall
25include information regarding any known or suspected dangerous
26behavior of the child that indicates the child may pose a safety
27concern to the receiving county.
28(h) Whenever the social worker must change the placement of
29the child and is unable to find a suitable placement within the
30county and must place the child outside the county, the placement
31shall not be made until he or she has served written notice on the
32parent or guardian at least 14 days prior to the placement, unless
33the child’s health or well-being is endangered by delaying the
34action or would be endangered if prior notice were given. The
35notice shall state the reasonsbegin delete whichend deletebegin insert
thatend insert require placement outside
36the county. The parent or guardian may object to the placement
37not later than seven days after receipt of the notice and, upon
38objection, the court shall hold a hearing not later than five days
39after the objection and prior to the placement. The court shall order
P863 1out-of-county placement if it finds that the child’s particular needs
2require placement outside the county.
3(i) begin deleteWhere end deletebegin insertIf end insertthe court has ordered removal of the child from the
4physical custody of his or her parents pursuant to Section 361, the
5court shall consider whether the family ties and best interest of the
6child will be served by granting visitation rights to the child’s
7grandparents. The court shall clearly specify those
rights to the
8social worker.
9(j) begin deleteWhere end deletebegin insertIf end insertthe court has ordered removal of the child from the
10physical custody of his or her parents pursuant to Section 361, the
11court shall consider whether there are any siblings under the court’s
12jurisdiction, or any nondependent siblings in the physical custody
13of a parent subject to the court’s jurisdiction, the nature of the
14relationship between the child and his or her siblings, the
15appropriateness of developing or maintaining the sibling
16relationships pursuant to Section 16002, and the impact of the
17sibling relationships on the child’s placement and planning for
18legal permanence.
19(k) (1) An agency shall ensure placement of a child
in a home
20that, to the fullest extent possible, best meets the day-to-day needs
21of the child. A home that best meets the day-to-day needs of the
22child shall satisfy all of the following criteria:
23(A) The child’s caregiver is able to meet the day-to-day health,
24safety, and well-being needs of the child.
25(B) The child’s caregiver is permitted to maintain the least
26restrictive and most family-like environment that serves the
27day-to-day needs of the child.
28(C) The child is permitted to engage in reasonable,
29age-appropriate day-to-day activities that promote the most
30family-like environment for the foster child.
31(2) The foster child’s caregiver shall use a reasonable and
32prudent parent standard, as defined in paragraph (2) of subdivision
33(a) of Section
362.04, to determine day-to-day activities that are
34age appropriate to meet the needs of the child. Nothing in this
35section shall be construed to permit a child’s caregiver to permit
36the child to engage in day-to-day activities that carry an
37unreasonable risk of harm, or subject the child to abuse or neglect.
Section 391 of the Welfare and Institutions Code is
39amended to read:
(a) The dependency court shall not terminate jurisdiction
2over a nonminor unless a hearing is conducted pursuant to this
3section.
4(b) At any hearing for a nonminor at which the court is
5considering termination of the jurisdiction of the juvenile court,
6the county welfare department shall do all of the following:
7(1) Ensure that the dependent nonminor is present in court,
8unless the nonminor does not wish to appear in court, and elects
9a telephonic appearance, or document reasonable efforts made by
10the county welfare department to locate the nonminor when the
11nonminor is not available.
12(2) Submit a report describing whether it is in the
nonminor’s
13best interests to remain under the court’s dependency jurisdiction,
14which includes a recommended transitional independent living
15case plan for the nonminor when the report describes continuing
16dependency jurisdiction as being in the nonminor’s best interest.
17(3) If the county welfare department recommends termination
18of the court’s dependency jurisdiction, submit documentation of
19the reasonable efforts made by the department to provide the
20nonminor with the assistance needed to meet or maintain eligibility
21as a nonminor dependent, as defined in paragraphs (1) to (5),
22inclusive, of subdivision (b) of Section 11403.
23(4) If the nonminor has indicated that he or she does not want
24dependency jurisdiction to continue, the report shall address the
25manner in which the nonminor was advised of his or her options,
26including the benefits of remaining in foster care, and of his or
her
27right to reenter foster care and to file a petition pursuant to
28subdivision (e) of Section 388 to resume dependency jurisdiction
29prior to attaining 21 years of age.
30(c) (1) The court shall continue dependency jurisdiction over
31a nonminor who meets the definition of a nonminor dependent as
32described in subdivision (v) of Section 11400 unless the court finds
33 either of the following:
34(A) That the nonminor does not wish to remain subject to
35dependency jurisdiction.
36(B) That the nonminor is not participating in a reasonable and
37appropriate transitional independent living case plan.
38(2) In making the findings pursuant to paragraph (1), the court
39must also find that the nonminor has been informed of his or her
40options including the
benefits of remaining in foster care and the
P865 1right to reenter foster care by filing a petition pursuant to
2subdivision (e) of Section 388 to resume dependency jurisdiction
3and by completing a voluntary reentry agreement pursuant to
4subdivision (z) of Section 11400, and has had an opportunity to
5confer with his or her counsel if counsel has been appointed
6pursuant to Section 317.
7(d) (1) The court may terminate its jurisdiction over a nonminor
8if the court finds after reasonable and documented efforts the
9nonminor cannot be located.
10(2) When terminating dependency jurisdictionbegin insert,end insert the court shall
11maintain general jurisdiction over the nonminor to allow for the
12filing of a petition to resume dependency jurisdiction under
13subdivision (e) of Section 388 until
the nonminor attains 21 years
14of age, although no review proceedings shall be required. A
15nonminor may petition the court pursuant to subdivision (e) of
16Section 388 to resume dependency jurisdiction at any time before
17attaining 21 years of age.
18(e) The court shall not terminate dependency jurisdiction over
19a nonminor who has attained 18 years of age until a hearing is
20conducted pursuant to this section and the department has
21submitted a report verifying that the following information,
22documents, and services have been provided to the nonminor, or
23in the case of a nonminor who, after reasonable efforts by the
24county welfare department, cannot be located, verifying the efforts
25made to make the following available to the nonminor:
26(1) Written information concerning the nonminor’s case,
27including any known information regarding the nonminor’s Indian
28heritage or tribal connections, if
applicable, his or her family
29history and placement history, any photographs of the nonminor
30or his or her family in the possession of the county welfare
31department, other than forensic photographs, the whereabouts of
32any siblings under the jurisdiction of the juvenile court, unless the
33court determines that sibling contact would jeopardize the safety
34or welfare of the sibling, directions on how to access the documents
35the nonminor is entitled to inspect under Section 827, and the date
36on which the jurisdiction of the juvenile court would be terminated.
37(2) The following documents:
38(A) Social security card.
39(B) Certified copy of his or her birth certificate.
P866 1(C) Health and education summary, as described in subdivision
2(a) of Section 16010.
3(D) Driver’s license, as described in Section 12500 of the
4Vehicle Code, or identification card, as described in Section 13000
5of the Vehicle Code.
6(E) A letter prepared by the county welfare department that
7includes the following information:
8(i) The nonminor’s name and date of birth.
9(ii) The dates during which the nonminor was within the
10jurisdiction of the juvenile court.
11(iii) A statement that the nonminor was a foster youth in
12compliance with state and federal financial aid documentation
13requirements.
14(F) If applicable, the death certificate of the parent or parents.
15(G) If applicable, proof of the nonminor’s citizenship or legal
16residence.
17(H) An advance health care directive form.
18(I) The Judicial Council form that the nonminor would use to
19file a petition pursuant to subdivision (e) of Section 388 to resume
20dependency jurisdiction.
21(J) The written 90-day transition plan prepared pursuant to
22Section 16501.1.
23(3) Assistance in completing an application for Medi-Cal or
24assistance in obtaining other health insurance.
25(4) Referrals to transitional housing, if available, or assistance
26in securing other housing.
27(5) Assistance in obtaining employment or other financial
28
support.
29(6) Assistance in applying for admission to college or to a
30vocational training program or other educational institution and
31in obtaining financial aid, where appropriate.
32(7) Assistance in maintaining relationships with individuals
33who are important to a nonminor who has been in out-of-home
34placement for six months or longer from the date the nonminor
35entered foster care, based on the nonminor’s best interests.
36(8) For nonminors between 18 and 21 years of age, assistance
37in accessing the Independent Living Aftercare Program in the
38nonminor’s county of residence, and, upon the nonminor’s request,
39assistance in completing a voluntary reentry agreement for care
40and placement pursuant to subdivision (z) of Section 11400 and
P867 1in filing a petition pursuant to subdivision (e) of Section 388 to
2resume dependency
jurisdiction.
3(9) Written information notifying the child that current or former
4dependent children who are or have been in foster care are granted
5a preference for student assistant or internship positions with state
6agencies pursuant to Section 18220 of the Government Code. The
7preference shall be granted to applicants up to 26 years of age.
8(f) At the hearing closest to and before a dependent minor’s
918th birthday and every review hearing thereafter for nonminors,
10the department shall submit a report describing efforts toward
11completing the items described in paragraph (2) of subdivision
12(e).
13(g) The Judicial Council shall develop and implement standards,
14and develop and adopt appropriate forms necessary to implement
15this provision.
16(h) This section shall become operative on January 1, 2012.
Section 1767 of the Welfare and Institutions Code
18 is amended to read:
(a) Upon request, written notice of any hearing to
20consider the release on parole of any person under the control of
21the Youth Authority for the commission of a crime or committed
22to the authority as a person described in Section 602 shall be sent
23by the Department of the Youth Authority at least 30 days before
24the hearing to any victim of a crime committed by the person, or
25to the next of kin of the victim if the victim has died or is a minor.
26The requesting party shall keep the board apprised of his or her
27current mailing address.
28(b) Any one of the following persons may appear, personally
29or by counsel, at the hearing:
30(1) The victim of the offense and one
support person of his or
31her choosing.
32(2) In the event that the victim is unable to attend the proceeding,
33two support persons designated by the victim may attend to provide
34information about the impact of the crime on the victim.
35(3) If the victim is no longer living, two members of the victim’s
36immediate family may attend.
37(4) If none of those persons appear personally at the hearing,
38any one of them may submit a statement recorded on videotape
39for the board’s consideration at the hearing. Those persons shall
40also have the right to submit a written statement to the board at
P868 1least 10 days prior to the scheduled hearing for the board’s
2consideration at the hearing.
3(c) The board, in deciding whether to release the person on
4parole, shall consider the
statements of victims, next of kin, or
5statements made on their behalf pursuant to this section and shall
6include in its report a statement of whether the person would pose
7a threat to public safety if released on parole.begin delete The provisions of
8this section shall not be amended by the Legislature except by
9statute passed in each house by rollcall vote entered in the journal,
10two-thirds of the membership concurring, or by a statute that
11becomes effective only when approved by the electors.end delete
12(d) A representative designated by the victim or the victim’s
13next of kin shall be either that person’s legal counsel or a family
14or household member of the victim, for the purposes of this section.
15(e) Support persons may only provide information about the
16impact of the crime on the victim and provide physical and
17
emotional support to the victim or the victim’s family.
18(f) begin deleteNothing in this end deletebegin insertThis end insertsectionbegin delete shallend deletebegin insert does notend insert prevent the board
19from excluding a victim or his or her support person or persons
20from a hearing. The board may allow the presence of other support
21persons under particular circumstances surrounding the proceeding.
22(g) The provisions of this section shall not be amended by the
23Legislature except by statute passed in each
house by rollcall vote
24entered in the journal, two-thirds of the membership concurring,
25or by a statute that becomes effective only when approved by the
26electors.
Section 1984 of the Welfare and Institutions Code
28 is amended to read:
(a) The amount allocated to each county probation
30department from the Juvenile Reentry Grant shall be distributed
31in two equal payments to be paid on October 30 and May 30 of
32each fiscal year, until June 30, 2013. Commencing with the
332013-14 fiscal year, the amount allocated to each county probation
34department from the Juvenile Reentry Grant Special Account
35established in paragraph (2) of subdivision (c) of Section 30025
36of the Government Code shall be allocated in monthly installments.
37In each fiscal year the amount allocated to each county probation
38department from the Juvenile Reentry Grant Special Account shall
39be distributed pursuant to the criteria set forth in subdivisions (b)
40to (h), inclusive, of this section.
P869 1(b) Consistent with Section 1766, funds shall be
allocated in
2the amount of fifteen thousand dollars ($15,000) on an average
3daily population basis per ward discharged to the jurisdiction of
4the court and ordered by the court to be supervised by local county
5probation for monitoring and services during the previous fiscal
6year based on the actual number of discharged wards supervised
7at the local level. For each discharged ward, this funding shall be
8provided for 24 months.
9(c) Consistent with Sections 208.5 and 1767.35, funds shall be
10allocated in the amount of one hundred fifteen thousand dollars
11($115,000) on an average daily population basis per discharged
12ward transferred to a local juvenile facility for violating a condition
13of court-ordered supervision during the previous fiscal year based
14on the actual number of discharged wards housed in a local juvenile
15detention facility or court-ordered placement facility where the
16costs of the housingbegin delete isend deletebegin insert
areend insert not reimbursable to the county through
17Title IV-E of the federal Social Security Act, or Medi-Cal. For
18each discharged ward, this funding shall be provided for the actual
19number of months the ward is housed in a facility up to 12 months.
20This funding shall not be provided for wards housed in a jail under
21any circumstances.
22(d) Consistent with Section 731.1, funds shall be allocated in
23the amount of fifteen thousand dollars ($15,000) on an average
24daily population basis per parolee recalled by the county of
25commitment for monitoring and services during the previous fiscal
26year based on the actual number of parolees recalled. For each
27recalled parolee, this funding shall be provided for the remaining
28duration of the term of state supervision, not to exceed 24 months.
29(e) Consistent with Section 1766, funds shall be allocated in the
30amount
of fifteen thousand dollars ($15,000) on an average daily
31population basis per discharged ward transferred to the county of
32commitment for monitoring and services during the previous fiscal
33year based on the actual number of wards transferred. For each
34ward transferred on and after July 1, 2014, this funding shall be
35provided for the remaining duration of the term of juvenile court
36jurisdiction, not to exceed 24 months.
37(f) Consistent with Sections 208.5 and 1767.35, no additional
38funding, beyond the initial fifteen thousand dollars ($15,000)
39provided pursuant to subdivision (b) shall be allocated to counties
40for discharged wards who are housed in county jail or in any other
P870 1county correctional facility for violating a condition of
2court-ordered supervision during the previous fiscal year.
3(g) Consistent with Sections 208.5 and 1767.35,begin delete noend delete
additional
4funding, beyond the initial fifteen thousand dollars ($15,000)
5provided pursuant to subdivision (b)begin insert,end insert shallbegin insert notend insert be allocated to
6counties for discharged wards who are housed in a state juvenile
7facility for violating a condition of court-ordered supervision during
8the previous fiscal year.
9(h) In each fiscal year, consistent with subdivision (b) of Section
1030029.11 of the Government Code, the Department of Finance
11shall use the criteria outlined in subdivisions (b) to (g), inclusive,
12to determine each county’s allocation as a percentage of the funds
13deposited in the Juvenile Reentry Grant Special Account. Actual
14allocations provided to counties pursuant to subdivisions (b) to
15(g), inclusive, shall vary based
on the amount of funds deposited
16in the Juvenile Reentry Grant Special Account pursuant to
17subdivision (b) of Section 30028.1 of the Government Code.
Section 4142 of the Welfare and Institutions Code
19 is amended to read:
(a) Notwithstanding any other law, whenever a patient
21is committed to the State Department of State Hospitals, a director
22of a state hospital or a clinician, as defined in subdivision (f), shall
23obtain the state summary criminal history information for the
24patient. The information shall be used to assess the violence risk
25of a patient, to assess the appropriate placement of a patient,begin delete for begin insert to treatend insert a patient,
26treatment purposes ofend deletebegin delete for use in preparingend deletebegin insert to
27prepareend insert
periodic reports as required by statute, or to determine the
28patient’s progress or fitness for release. The state summary criminal
29history information shall be placed in the patient’s confidential
30file for the duration of his or her commitment.
31(b) The information may be obtained through use of the
32California Law Enforcement Telecommunications System
33(CLETS). Law enforcement personnel shall cooperate with requests
34for state summary criminal history information authorized pursuant
35to this section and shall provide the information to the requesting
36entity in a timely manner.
37(c) A law enforcement officer or person authorized by this
38section to receive the information who obtains the information in
39the record and knowingly provides the information to a person not
P871 1authorized by law to receive the information is guilty of a
2misdemeanor as specified in Section 11142 of the
Penal Code.
3(d) Information obtained pursuant to this section shall not be
4used for any purposes other than those described in subdivision
5(a).
6(e) For purposes of this section, the State Department of State
7Hospitals law enforcement personnel, pursuant to Section 830.38
8of the Penal Code, may act as the law enforcement personnel
9described in subdivision (b).
10(f) For purposes of this section, “clinician” means a state
11licensed mental health professional working within the State
12Department of State Hospitals who has received, and is current in,
13CLETS training that is appropriate for a person who has ongoing
14access to information from the CLETS and is not a CLETS
15operator, following the policies on training, compliance, and
16inspection required by the Department of Justice.
17(g) State summary criminal history information secured pursuant
18to this section shall remain confidential and access shall be limited
19to the director of the state hospitalbegin delete orend deletebegin insert
andend insert the clinician. Within 30
20days of discharge from the state hospital, the state summary
21criminal history information shall be removed from the patient’s
22file and destroyed.
Section 4144 of the Welfare and Institutions Code
24 is amended to read:
(a) A state hospital psychiatrist or psychologist may
26refer a patient to a pilot enhanced treatment program (ETP), as
27defined in Section 1265.9 of the Health and Safety Code, for
28temporary placement and risk assessment upon determining that
29the patient may be at high risk of most dangerous behavior and
30when safe treatment is not possible in a standard treatment
31environment. The referral may occur after admission to the State
32Department of State Hospitals, and after sufficient and documented
33evaluation of violence risk of the patient, with notice to the
34patients’ rights advocate at the time of the referral. A patient shall
35not be placed into an ETP as a means of punishment, coercion,
36convenience, or retaliation.
37(b) Within three business days of placement in an ETP, a
38
dedicated forensic evaluator, who is not on the patient’s treatment
39team, shall complete an initial evaluation of the patient that shall
40include an interview of the patient’s treatment team, an analysis
P872 1of diagnosis, past violence, current level of risk, and the need for
2enhanced treatment.
3(c) (1) Within seven business days of placement in an ETP and
4with 72-hour notice to the patient and patients’ rights advocate,
5the forensic needs assessment panel (FNAP) shall conduct a
6placement evaluation meeting with the referring psychiatrist or
7psychologist, the patient and patients’ rights advocate, and the
8dedicated forensic evaluator who performed the initial evaluation.
9A determination shall be made as to whether the patient clinically
10requires ETP treatment.
11(2) (A) The threshold standard for treatment in an ETP is met
12if a psychiatrist or
psychologist, utilizing standard forensic
13methodologies for clinically assessing violence risk, determines
14that a patient meets the definition of a patient at high risk of most
15dangerous behavior and ETP treatment meets the identified needs
16of the patient and safe treatment is not possible in a standard
17treatment environment.
18(B) Factors used to determine a patient’s high risk of most
19dangerous behavior may include, but are not limited to, an analysis
20of past violence, delineation of static and dynamic violence risk
21factors, and utilization of valid and reliable violence risk
22assessment testing.
23(3) If a patient has shown improvement during his or her
24placement in an ETP, the FNAP may delay its certification decision
25for another seven business days. The FNAP’s determination of
26whether the patient will benefit from continued or longer term ETP
27placement and treatment shall be based
on the threshold standard
28for treatment in an ETP specified in subparagraph (A) of paragraph
29(2).
30(d) (1) The FNAP shall review all material presented at the
31FNAP placement evaluation meeting conducted under subdivision
32(c), and the FNAP shall either certify the patient for 90 days of
33treatment in an ETP or direct that the patient be returned to a
34standard treatment environment in the hospital.
35(2) After the FNAP makes a decision to provide ETP treatment
36and if ETP treatment will be provided at a facility other than the
37current hospital, the transfer may take place as soon as
38transportation may reasonably be arranged, but no later than 30
39days after the decision is made.
P873 1(3) The FNAP determination shall be in writing and provided
2to the patient and patients’ rights advocate as soon as possible,
but
3no later than three business days after the decision is made.
4(e) (1) Upon admission to an ETP, a forensic needs assessment
5team (FNAT) psychologist who is not on the patient’s
6multidisciplinary treatment team shall perform an in-depth violence
7risk assessment and make an individual treatment plan for the
8patient based on the assessment. The individual treatment plan
9shall:
10(A) Be in writing and developed in collaboration with the
11patient, when possible. The initial treatment plan shall be developed
12as soon as possible, but no later than 72 hours following the
13patient’s admission. The comprehensive treatment plan shall be
14developed following a complete violence risk assessment.
15(B) Be based on a comprehensive assessment of the patient’s
16physical, mental, emotional, and social needs, and
focused on
17mitigation of violence risk factors.
18(C) Be reviewed and updated no less than every 10 days.
19(2) The individual treatment plan shall include, but is not limited
20to, all of the following:
21(A) A statement of the patient’s physical and mental condition,
22including all mental health and medical diagnoses.
23(B) Prescribed medication, dosage, and frequency of
24administration.
25(C) Specific goals of treatment with intervention and actions
26that identify steps toward reduction of violence risk and observable,
27measurable objectives.
28(D) Identification of methods to be utilized, the frequency for
29conducting each treatment method,
and the person, or persons, or
30discipline, or disciplines, responsible for each treatment method.
31(E) Documentation of the success or failure in achieving stated
32objectives.
33(F) Evaluation of the factors contributing to the patient’s
34progress or lack of progress toward reduction of violence risk and
35a statement of the multidisciplinary treatment decision for followup
36action.
37(G) An activity plan.
38(H) A plan for other services needed by the patient, such as care
39for medical and physical ailments, which are not provided by the
40multidisciplinary treatment team.
P874 1(I) Discharge criteria and goals for an aftercare plan in a standard
2treatment environment and a plan for post-ETP discharge follow
3
up.
4(3) An ETP patient shall receive treatment from a
5multidisciplinary team consisting of a psychologist, a psychiatrist,
6a nurse, a psychiatric technician, a clinical social worker, a
7rehabilitation therapist, and any other necessary staff who shall
8meet as often as necessary, but no less than once a week, to assess
9the patient’s response to treatment.
10(4) The staff shall observe and note any changes in the patient’s
11condition and the treatment plan shall be modified in response to
12the observed changes.
13(5) Social work services shall be organized, directed, and
14supervised by a licensed clinical social worker.
15(6) (A) Mental health treatment programs shall provide and
16conduct organized therapeutic social, recreational, and
vocational
17activities in accordance with the interests, abilities, and needs of
18the patients, including the opportunity for exercise.
19(B) Mental health rehabilitation therapy services shall be
20designed by and provided under the direction of a licensed mental
21health professional, a recreational therapist, or an occupational
22therapist.
23(7) An aftercare plan for a standard treatment environment shall
24be developed.
25(A) A written aftercare plan shall describe those services that
26should be provided to a patient following discharge, transfer, or
27release from an ETP for the purpose of enabling the patient to
28maintain stabilization or achieve an optimum level of functioning.
29(B) Prior to or at the time of discharge, transfer, or release from
30an ETP, each patient
shall be evaluated concerning the patient‘s
31need for aftercare services. This evaluation shall consider the
32patient’s potential housing, probable need for continued treatment
33and social services, and need for continued medical and mental
34health care.
35(C) Aftercare plans shall include, but shall not be limited to,
36arrangements for medication administration and follow-up care.
37(D) A member of the multidisciplinary treatment team
38designated by the clinical director shall be responsible for ensuring
39that the aftercare plan has been completed and documented in the
40begin delete patient‘send deletebegin insert patient’send insert health record.
P875 1(E) The patient shall receive a
copy of the aftercare plan when
2referred to a standard treatment environment.
3(f) Prior to the expiration of 90 days from the date of placement
4in an ETP and with 72-hour notice provided to the patient and the
5patients’ rights advocate, the FNAP shall convene a treatment
6placement meeting with a psychologist from the treatment team,
7a patients’ rights advocate, the patient, and the FNAT psychologist
8who performed the in-depth violence risk assessment. The FNAP
9shall determine whether the patient may return to a standard
10treatment environment or whether the patient clinically requires
11continued treatment in an ETP. If the FNAP determines that the
12patient clinically requires continued ETP placement, the patient
13shall be certified for further ETP placement for one year. The
14FNAP determination shall be in writing and provided to the patient
15and the patients’ rights advocate within 24 hours of the meeting.
16If the FNAP determines that the patient is
ready to be transferred
17to a standard treatment environment, the FNAP shall identify
18appropriate placement within a standard treatment environment
19in a state hospital, and transfer the patient within 30 days of the
20determination.
21(g) If a patient has been certified for ETP treatment for one year
22pursuant to subdivision (f), the FNAP shall review the patient’s
23treatment summary at least every 90 days to determine if the patient
24no longer clinically requires treatment in the ETP. This FNAP
25determination shall be in writing and provided to the patient and
26the patients’ rights advocate within three business days of the
27meeting. If the FNAP determines that the patient no longer
28clinically requires treatment in the ETP, the FNAP shall identify
29appropriate placement, and transfer the patient within 30 days of
30the determination.
31(h) Prior to the expiration of the one-year certification of
ETP
32placement under subdivision (f), and with 72-hour notice provided
33to the patient and the patients’ rights advocate, the FNAP shall
34convene a treatment placement meeting with the treatment team,
35the patients’ rights advocate, the patient, and the FNAT
36psychologist who performed the in-depth violence risk assessment.
37The FNAP shall determine whether the patient clinically requires
38continued ETP treatment. The FNAP determination shall be in
39writing and provided to the patient and the patients’ rights advocate
40within 24 hours of the meeting.
P876 1(i) If after the treatment placement meeting described in
2subdivision (h), and after discussion with the patient, the patients’
3rights advocate, patient’s ETP team members, and review of
4documents and records, the FNAP determines that the patient
5clinically requires continued ETP placement, the patient’s case
6shall be referred outside of the State Department of State Hospitals
7to a forensic psychiatrist or
psychologist for an independent
8medical review for the purpose of assessing the patient’s overall
9treatment plan and the need for ongoing ETP treatment. Notice of
10the referral shall be provided to the patient and the patients’ rights
11advocate within 24 hours of the FNAP meeting as part of the FNAP
12determination. The notice shall include instructions for the patient
13to submit information to the forensic psychiatrist or psychologist
14conducting the independent medical review.
15(1) The forensic psychiatrist or psychologist conducting the
16independent medical review shall be provided with the patient’s
17medical and psychiatric documents and records, along with any
18additional information submitted by the patient, within five
19business days from the date of the FNAP’s determination that the
20patient requires continued ETP placement.
21(2) After reviewing the patient’s medical and psychiatric
22
documents and records, along with any additional information
23submitted by the patient, but no later than 14 days after the receipt
24of the patient’s medical and psychiatric documents and records,
25the forensic psychiatrist or psychologist conducting the independent
26medical review shall provide the State Department of State
27Hospitals, the patient, and the patients’ rights advocate with a
28written notice of the date and time for a hearing. At least one FNAP
29member is required to attend the hearing. The notice shall be
30provided at least 72 hours in advance of the hearing, shall include
31a statement that at least one FNAP member is required to attend
32the hearing, and advise the patient of his or her right to a hearing
33or to waive his or her right to a hearing. The notice shall also
34include a statement that the patient may have assistance of a
35patients’ rights advocate or staff member at the hearing.
36Seventy-two-hour notice shall also be provided to any individuals
37whose presence is requested by the forensic
psychiatrist or
38psychologist conducting the independent medical review in order
39to help assess the patient’s overall treatment plan and the need for
40ongoing ETP treatment.
P877 1(3) If the patient waives his or her right to a hearing, the forensic
2psychiatrist or psychologist conducting the independent medical
3review shall make recommendations to the FNAP on whether or
4not the patient should be certified for ongoing ETP treatment.
5(4) If the patient does not waive the right to a hearing, both of
6the following shall be provided:
7(A) If the patient elects to have the assistance of a patients’
8rights advocate or a staff person,begin delete including the patients’ rights the requested person shall provide assistance relating to
9advocate,end delete
10the hearing,
whether or not the patient is present at the hearing,
11unless the forensic psychiatrist or psychologist conducting the
12hearing finds good cause why the requested person should not
13participate. Good cause includes a reasonable concern for the safety
14of a staff member requested to be present at the hearing.
15(B) An opportunity for the patient to present information,
16statements, or arguments, either orally or in writing, to show either
17that the information relied on for the FNAP’s determination for
18ongoing treatment is erroneous, or any other relevant information.
19(5) The conclusion reached by the forensic psychiatrist or
20psychologist who conducts the independent medical review shall
21be in writing and provided to the State Department of State
22Hospitals, the patient, and the patients’ rights advocate within three
23business days of the conclusion of the hearing.
24(6) If the forensic psychiatrist or psychologist who conducts the
25independent medical review concludes that the patient requires
26ongoing ETP treatment, the patient shall be certified for further
27treatment for an additional year.
28(7) If the forensic psychiatrist or psychologist who conducts the
29independent medical review determines that the patient no longer
30requires ongoing ETP treatment, the FNAP shall identify
31appropriate placement and transfer the patient within 30 days of
32determination.
33(j) At any point during the ETP placement, if a patient’s
34treatment team determines that the patient no longer clinically
35requires ETP treatment, a recommendation to transfer the patient
36out of the ETP shall be made to the FNAT or FNAP.
37(k) The process described in this
section may continue until the
38patient no longer clinically requires ETP treatment or until the
39patient is discharged from the State Department of State Hospitals.
P878 1(l) As used in this section, the following terms have the
2following meanings:
3(1) “Enhanced treatment program” or “ETP” means a
4supplemental treatment unit as defined in Section 1265.9 of the
5Health and Safety Code.
6(2) “Forensic needs assessment panel” or “FNAP” means a
7panel that consists of a psychiatrist, a psychologist, and the medical
8director of the hospital or facility, none of whom are involved in
9the patient’s treatment or diagnosis at the time of the hearing or
10placement meetings.
11(3) “Forensic needs assessment team” or “FNAT” means a panel
12of psychologists with expertise in
forensic assessment or violence
13risk assessment, each of whom are assigned an ETP case or group
14of cases.
15(4) “In-depth violence risk assessment” means the utilization
16of standard forensic methodologies for clinically assessing the risk
17of a patient posing a substantial risk of inpatient aggression.
18(5) “Patients’ rights advocate” means the advocate contracted
19under Sections 5370.2 and 5510.
20(6) “Patient at high risk of most dangerous behavior” means the
21individual has a history of physical violence and currently poses
22a demonstrated danger of inflicting substantial physical harm upon
23others in an inpatient setting, as determined by an evidence-based,
24in-depth violence risk assessment conducted by the State
25Department of State Hospitals.
26(m) The State
Department of State Hospitals may adopt
27emergency regulations in accordance with the Administrative
28Procedures Act (Chapter 3.5 (commencing with Section 11340)
29of Part 1 of Division 3 of Title 2 of the Government Code) to
30implement the treatment components of this section. The adoption
31of an emergency regulation under this paragraph is deemed to
32address an emergency, for purposes of Sections 11346.1 and
3311349.6 of the Government Code, and the State Department of
34State Hospitals is hereby exempted for this purpose from the
35requirements of subdivision (b) of Section 11346.1 of the
36Government Code.
Section 4512 of the Welfare and Institutions Code
38 is amended to read:
As used in this division:
P879 1(a) “Developmental disability” means a disability that originates
2before an individual attains 18 years of age; continues, or can be
3expected to continue, indefinitely; and constitutes a substantial
4disability for that individual. As defined by the Director of
5Developmental Services, in consultation with the Superintendent
6of Public Instruction, this term shall include intellectual disability,
7cerebral palsy, epilepsy, and autism. This term shall also include
8disabling conditions found to be closely related to intellectual
9disability or to require treatment similar to that required for
10individuals with an intellectual disability, but shall not include
11other handicapping conditions that are solely physical in nature.
12(b) “Services and supports for persons with developmental
13disabilities” means specialized services and supports or special
14adaptations of generic services and supports directed toward the
15alleviation of a developmental disability or toward the social,
16personal, physical, or economic habilitation or rehabilitation of an
17individual with a developmental disability, or toward the
18achievement and maintenance of independent, productive, and
19normal lives. The determination of which services and supports
20are necessary for each consumer shall be made through the
21individual program plan process. The determination shall be made
22on the basis of the needs and preferences of the consumer or, when
23appropriate, the consumer’s family, and shall include consideration
24of a range of service options proposed by individual program plan
25participants, the effectiveness of each option in meeting the goals
26stated in the individual program plan, and the cost-effectiveness
27of
each option. Services and supports listed in the individual
28program plan may include, but are not limited to, diagnosis,
29evaluation, treatment, personal care, day care, domiciliary care,
30special living arrangements, physical, occupational, and speech
31therapy, training, education, supported and sheltered employment,
32mental health services, recreation, counseling of the individual
33with a developmental disability and of his or her family, protective
34and other social and sociolegal services, information and referral
35services, follow-along services, adaptive equipment and supplies,
36advocacy assistance, including self-advocacy training, facilitation
37and peer advocates, assessment, assistance in locating a home,
38child care, behavior training and behavior modification programs,
39camping, community integration services, community support,
40daily living skills training, emergency and crisis intervention,
P880 1facilitating circles of support, habilitation, homemaker services,
2infant stimulation programs, paid roommates, paid
neighbors,
3respite, short-term out-of-home care, social skills training,
4specialized medical and dental care, telehealth services and
5supports, as defined in Section 2290.5 of the Business and
6Professions Code, supported living arrangements, technical and
7financial assistance, travel training, training for parents of children
8with developmental disabilities, training for parents with
9developmental disabilities, vouchers, and transportation services
10necessary to ensure delivery of services to persons with
11developmental disabilities. Nothing in this subdivision is intended
12to expand or authorize a new or different service or support for
13any consumer unless that service or support is contained in his or
14her individual program plan.
15(c) Notwithstanding subdivisions (a) and (b), for any
16organization or agency receiving federal financial participation
17under the federal Developmental Disabilities Assistance and Bill
18of Rights Act of 2000, Chapter 144
(commencing with Section
1915001) of Title 42 of the United States Code, as amended,
20“developmental disability” and “services for persons with
21developmental disabilities” mean the terms as defined in the federal
22act to the extent required by federal law.
23(d) “Consumer” means a person who has a disability that meets
24the definition of developmental disability set forth in subdivision
25(a).
26(e) “Natural supports” means personal associations and
27relationships typically developed in the community that enhance
28the quality and security of life for people, including, but not limited
29to, family relationships, friendships reflecting the diversity of the
30neighborhood and the community, associations with fellow students
31or employees in regular classrooms and workplaces, and
32associations developed through participation in clubs,
33organizations, and other civic activities.
34(f) “Circle of support” means a committed group of community
35members, who may include family members, meeting regularly
36with an individual with developmental disabilities in order to share
37experiences, promote autonomy and community involvement, and
38assist the individual in establishing and maintaining natural
39supports. A circle of support generally includes a plurality of
40members who neither provide nor receive services or supports for
P881 1persons with developmental disabilities and who do not receive
2payment for participation in the circle of support.
3(g) “Facilitation” means the use of modified or adapted
4materials, special instructions, equipment, or personal assistance
5by an individual, such as assistance with communications, that
6will enable a consumer to understand and participate to the
7maximum extent possible in the decisions and choices that affect
8his or her life.
9(h) “Family support services” means services and supports that
10are provided to a child with developmental disabilities or his or
11her family and that contribute to the ability of the family to reside
12together.
13(i) “Voucher” means any authorized alternative form of service
14delivery in which the consumer or family member is provided with
15a payment, coupon, chit, or other form of authorization that enables
16the consumer or family member to choose his or her own service
17provider.
18(j) “Planning team” means the individual with developmental
19disabilities, the parents or legally appointed guardian of a minor
20consumer or the legally appointed conservator of an adult
21consumer, the authorized representative, including those appointed
22pursuant to subdivision (d) of Section 4548 and subdivision (e) of
23Section 4705, one or more
regional center representatives,
24including the designated regional center service coordinator
25pursuant to subdivision (b) of Section 4640.7, any individual,
26including a service provider, invited by the consumer, the parents
27or legally appointed guardian of a minor consumer or the legally
28appointed conservator of an adult consumer, or the authorized
29representative, including those appointed pursuant to subdivision
30(d) of Section 4548 and subdivision (e) of Section 4705, and
31including a minor’s, dependent’s, or ward’s court-appointed
32developmental services decisionmaker appointed pursuant to
33Section 319, 361, or 726.
34(k) “Stakeholder organizations” means statewide organizations
35representing the interests of consumers, family members, service
36providers, and statewide advocacy organizations.
37(l) begin insert(1)end insertbegin insert end insert “Substantial disability” means the existence of
38significant functional limitations in three or more of the following
39areas of major life activity, as determined by a regional center,
40and as appropriate to the age of the person:
P882 1(1)
end delete2begin insert(A)end insert Self-care.
3(2)
end delete4begin insert(B)end insert Receptive and expressive language.
5(3)
end delete6begin insert(C)end insert Learning.
7(4)
end delete8begin insert(D)end insert Mobility.
9(5)
end delete10begin insert(E)end insert Self-direction.
11(6)
end delete12begin insert(F)end insert Capacity for independent living.
13(7)
end delete14begin insert(G)end insert Economic self-sufficiency.
15 Any
end delete
16begin insert(2)end insertbegin insert end insertbegin insertAend insertbegin insert end insertreassessment of substantial disability for purposes of
17continuing eligibility shall utilize the same criteria under which
18the individual was originally made eligible.
19(m) “Native language” means the language normally used or
20the preferred language identified by the individual and, when
21appropriate, his or her parent, legal guardian or conservator, or
22authorized representative.
Section 4520 of the Welfare and Institutions Code
24 is amended to read:
(a) A State Council on Developmental Disabilities with
26authority independent of any single state service agency is hereby
27created.
28(b) The Legislature finds that in each of the 56 states and
29territories, the federal Developmental Disabilities Assistance and
30Bill of Rights Act of 2000 (Public Law 106-402 (42 U.S.C.begin insert Sec.end insert
31 15001 et seq.)) establishes State Councils on Developmental
32Disabilities that work to promote the core values of the act,
33including self-determination, independence, productivity,
34integration, and inclusion in all aspects of community life.
35(c) The Legislature finds that
California’s State Council on
36Developmental Disabilities was established pursuant to the federal
37Developmental Disabilities Assistance and Bill of Rights Act of
382000 to engage in advocacy, capacity building, and systemic
39change activities that are consistent with the policy contained in
40federal law and contribute to a coordinated, consumer- and
P883 1family-centered, consumer- and family-directed, comprehensive
2system that includes the provision of needed community services,
3individualized supports, and other forms of assistance that promote
4self-determination for individuals with developmental disabilities
5and their families. It is the intent of the Legislature that the state
6council independently exercise its authority and responsibilities
7under federal law, expend its federal funding allocation, and
8exercise all powers and duties that may be necessary to carry out
9the purposes contained in applicable federal law.
10(d) The Legislature finds that the
federal Developmental
11Disabilities Assistance and Bill of Rights Act of 2000 requires the
12council to promote certain principles that include all of the
13following:
14(1) Individuals with developmental disabilities, including those
15with the most severe developmental disabilities, are capable of
16self-determination, independence, productivity, and integration
17and inclusion in all facets of community life, but often require the
18provision of community services, individualized supports, and
19other forms of assistance.
20(2) Individuals with developmental disabilities and their families
21have competencies, capabilities, and personal goals that should be
22recognized, supported, and encouraged, and any assistance to these
23individuals should be provided in an individualized manner,
24consistent with the unique strengths, resources, priorities, concerns,
25abilities, and capabilities of these
individuals.
26(3) Individuals with developmental disabilities and their families
27are the primary decisionmakers regarding the services and supports
28these individuals and their families receive, including choosing
29where an individual lives from available options, and have
30decisionmaking roles in policies and programs that affect the lives
31of these individuals and their families.
32(e) (1) The Legislature finds that the state council faces unique
33challenges in ensuring access and furthering these principles due
34to the state’s size, diversity, and a service delivery system that
35promotes significant local control.
36(2) Therefore, it is the intent of the Legislature that the state
37council, consistent with its authority and responsibilities under
38federal law, ensure that the council is accessible and
responsive
39to the diverse geographic, racial, ethnic, and language needs of
40individuals with developmental disabilities and their families
P884 1throughout California, which in part may, as determined by the
2state council, be achieved through the establishment of regional
3offices, the number and location of which may be determined by
4the state council.
5(f) This chapter, Chapter 3 (commencing with Section 4561),
6and Division 4.7 (commencing with Section 4900), are intended
7by the Legislature to secure full compliance with the requirements
8of the federal Developmental Disabilities Assistance and Bill of
9Rights Act of 2000 as amended and extended, which provides
10federal funds to assist the state in planning, coordinating,
11monitoring, and evaluating services for persons with developmental
12disabilities and in establishing a system to protect and advocate
13the legal and civil rights of persons with developmental disabilities.
14(g) The state council may use funds and other moneys allocated
15to the state council in accordance with the purposes of the federal
16Developmental Disabilities Assistance and Bill of Rights Act of
172000. This section does not preclude the state council from using
18moneys other than moneys provided through the federal
19Developmental Disabilities Assistance and Bill of Rights Act of
202000 in any manner consistent with applicable federal and state
21law.
Section 4520.5 of the Welfare and Institutions Code
23 is amended to read:
Notwithstanding any other law, the state council shall
25determine the structure of its organization, as required by the
26federal Developmental Disabilities Assistance and Bill of Rights
27Act of 2000 (Public Law 106-402 (42 U.S.C.begin insert Sec.end insert 15001 et seq.)).
Section 4521 of the Welfare and Institutions Code
29 is amended to read:
(a) (1) All references to “council” or “state council” in
31this division shall be a reference to the State Council on
32Developmental Disabilities.
33(2) “Developmental disability,” as used in this chapter, means
34a developmental disability as defined in Section 15002(8) of Title
3542 of the Unitedbegin delete Stateend deletebegin insert Statesend insert Code.
36(b) There shall be 31 voting members on the state council
37appointed by the Governor from among the residents of the state,
38as follows:
39(1) (A) Twenty members of the council shall be nonagency
40members who reflect the socioeconomic, geographic, disability,
P885 1racial, ethnic, and language diversity of the state, and who shall
2be persons with a developmental disability or their parents,
3immediate relatives, guardians, or conservators residing in
4California. Of the 20 members:
5(i) At least seven members shall be persons with developmental
6disabilities.
7(ii) At least seven members shall be a person who is a parent,
8immediate relative, guardian, or conservator of a person with a
9developmental disability.
10(iii) At least one of the members shall be a person with a
11developmental disability who is a current or former resident of an
12institution or his or her immediate relative, guardian, or
13conservator.
14(B) To ensure that state council membership is geographically
15representative, as required by federal law, the Governor shall
16appoint the members described in clauses (i) and (ii) of
17subparagraph (A) from the geographical area of each regional
18office, if regional offices have been established by the council.
19Each member described in clauses (i) and (ii) of subparagraph (A)
20may, in the discretion of the state council, serve as a liaison from
21the state council to consumers and family members in the
22geographical area that he or she is from.
23(2) Eleven members of the council shall include the following:
24(A) The Secretary of California Health and Human Services,
25or his or her designee, who shall represent the agency and the state
26agency that administers funds under Title XIX of the Social
27Security Act for people with
developmental disabilities.
28(B) The Director of Developmental Services or his or her
29designee.
30(C) The Director of Rehabilitation or his or her designee.
31(D) The Superintendent of Public Instruction or his or her
32designee.
33(E) A representative from a nongovernmental agency or group
34concerned with the provision of services to persons with
35developmental disabilities.
36(F) One representative from each of the three university centers
37for excellence in the state, pursuant to Section 15061 et seq. of
38Title 42 of the United States Code, providing training in the field
39of developmental services, or his or her designee. These individuals
40shall have expertise in the field of developmental
disabilities.
P886 1(G) The Director of Health Care Services or his or her designee.
2(H) The executive director of the agency established in
3California to fulfill the requirements and assurance of Title I,
4Subtitle C, of the federal Developmental Disabilities Assistance
5and Bill of Rights Act of 2000 for a system to protect and advocate
6the rights of persons with developmental disabilities, or his or her
7designee.
8(I) The Director of the California Department of Aging or his
9or her designee.
10(c) Prior to appointing the members described in paragraph (1)
11of, and subparagraph (E) of paragraph (2) of, subdivision (b), the
12Governor shall consult with the current members of the council,
13including nonagency members of the council, and consider
14recommendations from
organizations representing persons with a
15broad range of developmental disabilities, or persons interested
16in, or providing services to, or both, persons with developmental
17disabilities.
18(d) The term of each member described in paragraph (1) of, and
19subparagraph (E) of paragraph (2) of, subdivision (b) shall be for
20three years. The term of these members shall begin on the date of
21appointment by the Governor and these members shall serve no
22more than two terms.
23(e) A member may continue to serve following the expiration
24of his or her term until the Governor appoints that member’s
25successor. The state council shall notify the Governor regarding
26membership requirements of the council and shall notify the
27Governor, in writing, immediately when a vacancy occurs prior
28to the expiration of a member’s term, at least six months before a
29member’s term expires, and when a vacancy on the
council remains
30unfilled for more than 60 days.
Section 4540 of the Welfare and Institutions Code
32 is amended to read:
The state council, established pursuant to the federal
34Developmental Disabilities Assistance and Bill of Rights Act of
352000 (Public Law 106-402 (42 U.S.C.begin insert Sec.end insert 15001 et seq.)), shall
36do all of the following:
37(a) Serve as an advocate for individuals with developmental
38disabilities and, through council members, staff, consultants, and
39contractors and grantees, conduct advocacy, capacity building,
40and systemic change activities.
P887 1(b) Develop and implement the state plan in accordance with
2requirements issued by the United States Secretary of Health and
3Human Services, monitor and evaluate the implementation of this
4plan,
and submit reports as the United States Secretary of Health
5and Human Services may reasonably request. The state council
6may review and comment on other plans and programs in the state
7affecting individuals with developmental disabilities.
8(c) Serve as the official agency responsible for planning the
9provision of the federal funds allotted to the state under Public
10Law 106-402 (42 U.S.C. Sec. 15001 et seq.), by conducting and
11supporting advocacy, capacity building, and systemic change
12activities. The council may itself conduct these activities and may
13provide grant funding to local agencies in compliance with
14applicable state and federal law, for those same purposes.
15(d) Prepare and approve a budget, for the use of amounts paid
16to the state to hire any staff and to obtain the services of any
17professional, technical, or clerical personnel consistent with state
18and federal law, as
the council determines to be necessary to carry
19out its functions.
20(e) To the extent that resources are available, implement the
21state plan by conducting activities including, but not limited to,
22all of the activities specified in paragraphs (1) to (11), inclusive.
23(1) Encouraging and assisting in the establishment or
24strengthening of self-advocacy organizations led by individuals
25with developmental disabilities.
26(2) Supporting and conducting geographically based outreach
27activities to identify individuals with developmental disabilities
28and their families who otherwise might not come to the attention
29of the council and assist and enable the individuals and families
30to obtain services, individualized supports, and other forms of
31assistance, including access to special adaptation of generic
32community services or
specialized services.
33(3) Supporting and conducting training for persons who are
34individuals with developmental disabilities, their families, and
35personnel, including professionals, paraprofessionals, students,
36volunteers, and other community members, to enable those persons
37to obtain access to, or to provide, community services,
38individualized supports, and other forms of assistance, including
39special adaptation of generic community services or specialized
P888 1services for individuals with developmental disabilities and their
2families.
3(4) Supporting and conducting technical assistance activities to
4assist public and private entities to contribute to the objectives of
5the state plan.
6(5) Supporting and conducting activities to assist neighborhoods
7and communities to respond positively to individuals with
8developmental
disabilities and their families.
9(6) Supporting and conducting activities to promote interagency
10collaboration and coordination at the state and local levels to better
11serve, support, assist, or advocate for individuals with
12developmental disabilities and their families.
13(7) Coordinating with related councils, committees, and
14programs to enhance coordination of services.
15(8) Supporting and conducting activities to eliminate barriers
16to access and use of community services by individuals with
17disabilities, enhance systems design and redesign, and enhance
18citizen participation to address issues identified in the state plan.
19(9) Supporting and conducting activities to educate the public
20about the capabilities, preferences, and needs of individuals with
21
developmental disabilities and their families, and to develop and
22support coalitions that support the policy agenda of the council,
23including training in self-advocacy, education of policymakers,
24and citizen leadership roles.
25(10) Supporting and conducting activities to provide information
26to policymakers by supporting and conducting studies and analyses,
27gathering information, and developing and disseminating model
28policies and procedures, information, approaches, strategies,
29findings, conclusions, and recommendations. The council may
30provide the information directly to federal, state, and local
31policymakers, including the Congress of the United States, the
32federal executive branch, the Governor, the Legislature, and state
33agencies in order to increase the abilities of those policymakers to
34offer opportunities and enhance or adapt generic services to meet
35the needs of, or provide specialized services to, individuals with
36developmental
disabilities and their families.
37(11) Supporting, on a time-limited basis, activities to
38demonstrate new approaches to serving individuals with
39developmental disabilities that are a part of an overall strategy for
40systemic change.
P889 1(f) Prepare an annual written report of its activities, its
2recommendations, and an evaluation of the efficiency of the
3administration of this division to the Governor and the Legislature.
4This report shall include both the statewide and regional activities
5of the state council. This report shall be submitted to the Legislature
6in accordance with Section 9795 of the Government Code.
7(g) Except as otherwise provided in this division, the state
8council shall not engage in the administration of the day-to-day
9operation of service programs identified in the state plan, nor in
10the financial
management and accounting of funds.
Section 4541 of the Welfare and Institutions Code
12 is amended to read:
The state council may, in its discretion, and in addition
14to the activities specified in subdivision (e) of Section 4540,
15implement the state plan by conducting activities that may include,
16but are not limited to, the following:
17(a) Appointing an authorized representative for persons with
18developmental disabilities according to all of the following:
19(1) To ensure the protection of civil and service rights of persons
20with developmental disabilities, the state council may appoint a
21representative to assist the person in expressing his or her desires
22and in making decisions and advocating his or her needs,
23preferences, and choices, when the person with developmental
24disabilities has no parent, guardian, or conservator legally
25
authorized to represent him or her and the person has either
26requested the appointment of a representative or the rights or
27interests of the person, as determined by the state council, will not
28be properly protected or advocated without the appointment of a
29representative.
30(2) When there is no guardian or conservator, the individual’s
31choice, if expressed, including the right to reject the assistance of
32a representative, shall be honored. If the person does not express
33a preference, the order of preference for selection of the
34representative shall be the person’s parent, involved family
35members, or a volunteer selected by the state council. In
36establishing these preferences, it is the intent of the Legislature
37that parents or involved family members shall not be required to
38be appointed guardian or conservator in order to be selected. Unless
39the person with developmental disabilities expresses otherwise,
40or good cause otherwise exists, the
request of the parents or
P890 1involved family members to be appointed the representative shall
2be honored.
3(3) Pursuant to this section, the state council shall appoint a
4representative to advocate the rights and protect the interest of a
5person residing in a developmental center for whom community
6placement is proposed pursuant to Section 4803. The representative
7may obtain the advocacy assistance of the regional center clients’
8rights advocate.
9(b) Conducting public hearings and forums and the evaluation
10and issuance of public reports on the programs identified in the
11state plan, as may be necessary to carry out the duties of the state
12council.
13(c) Identifying the denial of rights of persons with disabilities
14and informing the appropriate local, state, or federal officials of
15their findings, and assisting these
officials in eliminating all forms
16of discrimination against persons with developmental disabilities
17in housing, recreation, education, health and mental health care,
18employment, and other service programs available to the general
19population.
20(d) Reviewing and commenting on pertinent portions of the
21proposed plans and budgets of all state agencies serving persons
22with developmental disabilities including, but notbegin delete beend delete limited to,
23the State Department of Education, the Department of
24Rehabilitation, and the State Department of Developmental
25Services, and local agencies to the extent resources allow.
26(e) (1) Promoting systems change and implementation by
27reviewing the policies and practices of publicly funded agencies
28that serve or may serve persons with developmental disabilities
to
29determine if the programs are meeting their obligations, under
30local, state, and federal laws. If the state council finds that the
31agency is not meeting its obligations, the state council may inform
32the director and the governing board of the noncomplying agency,
33in writing, of its findings.
34(2) Within 15 days, the agency shall respond, in writing, to the
35state council’s findings. Following receipt of the agency’s response,
36if the state council continues to find that the agency is not meeting
37its obligations, the state council may pursue informal efforts to
38resolve the issue.
39(3) If, within 30 days of implementing informal efforts to resolve
40the issue, the state council continues to find that the agency is not
P891 1meeting its obligations under local, state, or federal statutes, the
2state council may conduct a public hearing to receive testimony
3on its findings.
4(4) The state council may take any action it deems necessary to
5resolve the problem.
6(f) Reviewing and publicly commenting on significant
7regulations proposed to be promulgated by any state agency in the
8implementation of this division.
9(g) Monitoring and evaluating the effectiveness of appeals
10procedures established in this division.
11(h) Providing testimony to legislative committees reviewing
12fiscal or policy matters pertaining to persons with developmental
13disabilities.
14(i) Conducting, or causing to be conducted, investigations or
15public hearings to resolve disagreements between state agencies,
16or between state and regional or local agencies, or between persons
17with developmental
disabilities and agencies receiving state funds.
18These investigations or public hearings shall be conducted at the
19discretion of the state council only after all other appropriate
20administrative procedures for appeal, as established in state and
21federal law, have been fully utilized.
22(j) Any other activities prescribed in statute that are consistent
23with the purposes of the federal Developmental Disabilities
24Assistance and Bill of Rights Act of 2000 (Public Law 106-402
25(42 U.S.C. Sec. 15001 et seq.)) and the state plan developed
26pursuant to subdivision (b) of Section 4540.
Section 4648 of the Welfare and Institutions Code
28 is amended to read:
begin deleteIn order to end deletebegin insertTo end insertachieve the stated objectives of a
30consumer’s individual program plan, the regional center shall
31conduct activities, including, but not limited to, all of the following:
32(a) Securing needed services and supports.
33(1) It is the intent of the Legislature that services and supports
34assist individuals with developmental disabilities in achieving the
35greatest self-sufficiency possible and in exercising personal
36choices. The regional center shall secure services and supports
37that meet the needs of the consumer, as determined in
the
38consumer’s individual program plan, and within the context of the
39individual program plan, the planning team shall give highest
40preference to those services and supportsbegin delete whichend deletebegin insert thatend insert would allow
P892 1minors with developmental disabilities to live with their families,
2adult persons with developmental disabilities to live as
3independently as possible in the community, and that allow all
4consumers to interact with persons without disabilities in positive,
5meaningful ways.
6(2) In implementing individual program plans, regional centers,
7through the planning team, shall first consider services and supports
8in natural community, home, work, and recreational settings.
9Services and supports shall be flexible and individually tailored
10to the consumer and, where
appropriate, his or her family.
11(3) A regional center may, pursuant to vendorization or a
12contract, purchase services or supports for a consumer from any
13individual or agency that the regional center and consumer or,
14when appropriate, his or her parents, legal guardian, or conservator,
15or authorized representatives, determines will best accomplish all
16or any part of that consumer’s program plan.
17(A) Vendorization or contracting is the process for identification,
18selection, and utilization of service vendors or contractors, based
19on the qualifications and other requirements necessary in order to
20provide the service.
21(B) A regional center may reimburse an individual or agency
22for services or supports provided to a regional center consumer if
23the individual or agency has a rate of payment for vendored or
24contracted
services established by the department, pursuant to this
25division, and is providing services pursuant to an emergency
26vendorization or has completed the vendorization procedures or
27has entered into a contract with the regional center and continues
28to comply with the vendorization or contracting requirements. The
29director shall adopt regulations governing the vendorization process
30to be utilized by the department, regional centers, vendors, and
31the individual or agency requesting vendorization.
32(C) Regulations shall include, but not be limited to: the vendor
33application process, and the basis for accepting or denying an
34application; the qualification and requirements for each category
35of services that may be provided to a regional center consumer
36through a vendor; requirements for emergency vendorization;
37procedures for termination of vendorization; the procedure for an
38individual or an agency to appeal any vendorization decision made
39by the
department or regional center.
P893 1(D) A regional center may vendorize a licensed facility for
2exclusive services to persons with developmental disabilities at a
3capacity equal to or less than the facility’s licensed capacity. A
4facility already licensed on January 1, 1999, shall continue to be
5vendorized at their full licensed capacity until the facility agrees
6to vendorization at a reduced capacity.
7(E) Effective July 1, 2009, notwithstanding any other law or
8regulation, a regional center shall not newly vendor a State
9Department of Social Services licensed 24-hour residential care
10facility with a licensed capacity of 16 or more beds, unless the
11facility qualifies for receipt of federal funds under the Medicaid
12Program.
13(4) Notwithstanding subparagraph (B) of paragraph (3), a
14regional center may contract or issue a
voucher for services and
15supports provided to a consumer or family at a cost not to exceed
16the maximum rate of payment for that service or support
17established by the department. If a rate has not been established
18by the department, the regional center may, for an interim period,
19contract for a specified service or support with, and establish a
20rate of payment for, any provider of the service or support
21necessary to implement a consumer’s individual program plan.
22Contracts may be negotiated for a period of up to three years, with
23annual review and subject to the availability of funds.
24(5) In order to ensure the maximum flexibility and availability
25of appropriate services and supports for persons with
26developmental disabilities, the department shall establish and
27maintain an equitable system of payment to providers of services
28and supports identified as necessary to the implementation of a
29begin delete consumers’end deletebegin insert
consumer’send insert individual program plan. The system of
30payment shall include a provision for a rate to ensure that the
31provider can meet the special needs of consumers and provide
32quality services and supports in the least restrictive setting as
33required by law.
34(6) The regional center and the consumer, or when appropriate,
35his or her parents, legal guardian, conservator, or authorized
36representative, including those appointed pursuant to subdivision
37(a) of Section 4541, subdivision (b) of Section 4701.6, or
38subdivision (e) of Section 4705, shall, pursuant to the individual
39program plan, consider all of the following when selecting a
40provider of consumer services and supports:
P894 1(A) A provider’s ability to deliver quality services or supports
2that can accomplish all or part of the consumer’s individual
3program plan.
4(B) A provider’s success in achieving the objectives set forth
5in the individual program plan.
6(C) begin deleteWhere end deletebegin insertIf end insertappropriate, the existence of licensing,
7accreditation, or professional certification.
8(D) The cost of providing services or supports of comparable
9quality by different providers, if available, shall be reviewed, and
10the least costly available provider of comparable service, including
11the cost of transportation, who is able to accomplish all or part of
12the consumer’s individual program plan, consistent with the
13particular needs of the consumer and family as identified in the
14individual program plan, shall be selected. In
determining the least
15costly provider, the availability of federal financial participation
16shall be considered. The consumer shall not be required to use the
17least costly provider if it will result in the consumer moving from
18an existing provider of services or supports to more restrictive or
19less integrated services or supports.
20(E) The consumer’s choice of providers, or, when appropriate,
21the consumer’s parent’s, legal guardian’s, authorized
22representative’s, or conservator’s choice of providers.
23(7) begin deleteNo end deletebegin insertA end insertservice or support provided bybegin delete anyend deletebegin insert
anend insert agency or
24individual shallbegin insert notend insert be continued unless the consumer or, when
25appropriate, his or her parents, legal guardian, or conservator, or
26authorized representative, including those appointed pursuant to
27subdivision (a) of Section 4541, subdivision (b) of Section 4701.6,
28or subdivision (e) of Section 4705, is satisfied and the regional
29center and the consumer or, when appropriate, the person’s parents
30or legal guardian or conservator agree that planned services and
31supports have been provided, and reasonable progress toward
32objectives have been made.
33(8) Regional center funds shall not be used to supplant the
34budget of any agency that has a legal responsibility to serve all
35members of the general public and is receiving public funds for
36providing those services.
37(9) (A) A regional center may, directly or through an agency
38acting on behalf of the center, provide placement in, purchase of,
39or follow-along services to persons with developmental disabilities
40in, appropriate community living arrangements, including, but not
P895 1limited to, support service for consumers in homes they own or
2lease, foster family placements, health care facilities, and licensed
3community care facilities. In considering appropriate placement
4alternatives for children with developmental disabilities, approval
5by the child’s parent or guardian shall be obtained before placement
6is made.
7(B) Effective July 1, 2012, notwithstanding any other law or
8regulation, a regional center shall not purchase residential services
9from a State Department of Social Services licensed 24-hour
10residential care facility with a licensed capacity of 16 or more
11beds. This
prohibition on regional center purchase of residential
12servicesbegin delete shallend deletebegin insert doesend insert not apply to any of the following:
13(i) A residential facility with a licensed capacity of 16 or more
14beds that has been approved to participate in the department’s
15Home and Community Based Services Waiver or another existing
16waiver program or certified to participate in the Medi-Cal program.
17(ii) A residential facility service provider that has a written
18agreement and specific plan prior to July 1, 2012, with the
19vendoring regional center to downsize the existing facility by
20transitioning its residential services to living arrangements of 15
21beds or less or restructure the large facility to meet federal
22Medicaid
eligibility requirements on or before June 30, 2013.
23(iii) A residential facility licensed as a mental health
24rehabilitation center by the State Department of Mental Health or
25successor agency under any of the following circumstances:
26(I) The facility is eligible for Medicaid reimbursement.
27(II) The facility has a department-approved plan in place by
28June 30, 2013, to transition to a program structure eligible for
29federal Medicaid funding, and this transition will be completed by
30June 30, 2014. The department may grant an extension for the date
31by which the transition will be completed if the facility
32demonstrates that it has made significant progress toward transition,
33and states with specificity the timeframe by which the transition
34will be completed and the specified steps that will be taken to
35accomplish the
transition. A regional center may pay for the costs
36of care and treatment of a consumer residing in the facility on June
3730, 2012, until June 30, 2013, inclusive, and, if the facility has a
38department-approved plan in place by June 30, 2013, may continue
39to pay the costs under this subparagraph until June 30, 2014, or
P896 1until the end of any period during which the department has granted
2an extension.
3(III) There is an emergency circumstance in which the regional
4center determines that it cannot locate alternate federally eligible
5services to meet the consumer’s needs. Under such an emergency
6circumstance, an assessment shall be completed by the regional
7center as soon as possible and within 30 days of admission. An
8individual program plan meeting shall be convened immediately
9following the assessment to determine the services and supports
10needed for stabilization and to develop a plan to transition the
11consumer from the facility into the
community. If transition is not
12expected within 90 days of admission, an individual program plan
13meeting shall be held to discuss the status of transition and to
14determine if the consumer is still in need of placement in the
15facility. Commencing October 1, 2012, this determination shall
16be made after also considering resource options identified by the
17statewide specialized resource service. If it is determined that
18emergency services continue to be necessary, the regional center
19shall submit an updated transition plan that can cover a period of
20up to 90 days. In no event shall placements under these emergency
21circumstances exceed 180 days.
22(C) (i) Effective July 1, 2012, notwithstanding any other law
23or regulation, a regional center shall not purchase new residential
24services from, or place a consumer in, institutions for mental
25disease, as described in Part 5 (commencing with Section 5900)
26of Division 5, for which federal
Medicaid funding is not available.
27Effective July 1, 2013, this prohibition applies regardless of the
28availability of federal funding.
29(ii) The prohibition described in clause (i)begin delete shallend deletebegin insert doesend insert not apply
30to emergencies, as determined by the regional center, when a
31regional center cannot locate alternate services to meet the
32consumer’s needs. As soon as possible within 30 days of admission
33due to an emergency, an assessment shall be completed by the
34regional center. An individual program plan meeting shall be
35convened immediately following the assessment, to determine the
36services and supports needed for stabilization and to develop a
37plan to transition the consumer from the facility to the community.
38If transition is not expected within 90 days of admission,
an
39emergency program plan meeting shall be held to discuss the status
40of the transition and to determine if the consumer is still in need
P897 1of placement in the facility. If emergency services continue to be
2necessary, the regional center shall submit an updated transition
3plan to the department for an extension of up to 90 days. Placement
4shall not exceed 180 days.
5(iii) To the extent feasible, prior to any admission, the regional
6center shall consider resource options identified by the statewide
7specialized resource service established pursuant to subdivision
8(b) of Section 4418.25.
9(iv) The clients’ rights advocate shall be notified of each
10admission and individual program planning meeting pursuant to
11this subparagraph and may participate in all individual program
12planning meetings unless the consumer objects on his or her own
13behalf. For purposes of this clause, notification to
the clients’ rights
14advocate shall include a copy of the most recent comprehensive
15assessment or updated assessment and the time, date, and location
16of the meeting, and shall be provided as soon as practicable, but
17not less than seven calendar days prior to the meeting.
18(v) Regional centers shall complete a comprehensive assessment
19of any consumer residing in an institution for mental disease as of
20July 1, 2012, for which federal Medicaid funding is not available,
21and for any consumer residing in an institution for mental disease
22as of July 1, 2013, without regard to federal funding. The
23comprehensive assessment shall be completed prior to the
24consumer’s next scheduled individual program plan meeting and
25shall include identification of the services and supports needed
26and the timeline for identifying or developing those services needed
27to transition the consumer back to the community. Effective
28October 1, 2012, the regional center shall also
consider resource
29options identified by the statewide specialized resource service.
30For each individual program plan meeting convened pursuant to
31this subparagraph, the clients’ rights advocate for the regional
32center shall be notified of the meeting and may participate in the
33meeting unless the consumer objects on his or her own behalf. For
34purposes of this clause, notification to the clients’ rights advocate
35shall include the time, date, and location of the meeting, and shall
36be provided as soon as practicable, but not less than seven calendar
37days prior to the meeting.
38(D) A person with developmental disabilities placed by the
39regional center in a community living arrangementbegin delete shall haveend deletebegin insert hasend insert
40 the rights specified in this division. These rights shall be
brought
P898 1to the person’s attention by any means necessary to reasonably
2communicate these rights to each resident, provided that, at a
3minimum, the Director of Developmental Services prepare,
4provide, and require to be clearly posted in all residential facilities
5and day programs a poster using simplified language and pictures
6that is designed to be more understandable by persons with
7intellectual disabilities and that the rights information shall also
8be available through the regional center to each residential facility
9and day program in alternative formats, including, but not limited
10to, other languages, braille, and audiotapes, when necessary to
11meet the communication needs of consumers.
12(E) Consumers are eligible to receive supplemental services
13including, but not limited to, additional staffing, pursuant to the
14process described in subdivision (d) of Section 4646. Necessary
15additional staffing that is not specifically included in the rates
paid
16to the service provider may be purchased by the regional center if
17the additional staff are in excess of the amount required by
18regulation and the individual’s planning team determines the
19additional services are consistent with the provisions of the
20individual program plan. Additional staff should be periodically
21reviewed by the planning team for consistency with the individual
22program plan objectives in order to determine if continued use of
23the additional staff is necessary and appropriate and if the service
24is producing outcomes consistent with the individual program plan.
25Regional centers shall monitor programs to ensure that the
26additional staff is being provided and utilized appropriately.
27(10) Emergency and crisis intervention services including, but
28not limited to, mental health services and behavior modification
29services, may be provided, as needed, to maintain persons with
30developmental disabilities in the living arrangement of
their own
31choice. Crisis services shall first be provided without disrupting a
32person’s living arrangement. If crisis intervention services are
33unsuccessful, emergency housing shall be available in the person’s
34home community. If dislocation cannot be avoided, every effort
35shall be made to return the person to his or her living arrangement
36of choice, with all necessary supports, as soon as possible.
37(11) Among other service and support options, planning teams
38shall consider the use of paid roommates or neighbors, personal
39assistance, technical and financial assistance, and all other service
P899 1and support options which would result in greater self-sufficiency
2for the consumer and cost-effectiveness to the state.
3(12) When facilitation as specified in an individual program
4plan requires the services of an individual, the facilitator shall be
5of the consumer’s choosing.
6(13) The community support may be provided to assist
7individuals with developmental disabilities to fully participate in
8community and civic life, including, but not limited to, programs,
9services, work opportunities, business, and activities available to
10persons without disabilities. This facilitation shall include, but not
11be limited to, any of the following:
12(A) Outreach and education to programs and services within
13the community.
14(B) Direct support to individuals that would enable them to
15more fully participate in their community.
16(C) Developing unpaid natural supports when possible.
17(14) When feasible and recommended by the individual program
18planning team, for purposes of facilitating
better and cost-effective
19services for consumers or family members, technology, including
20telecommunication technology, may be used in conjunction with
21other services and supports. Technology in lieu of a consumer’s
22in-person appearances at judicial proceedings or administrative
23due process hearings may be used only if the consumer or, when
24appropriate, the consumer’s parent, legal guardian, conservator,
25or authorized representative, gives informed consent. Technology
26may be used in lieu of, or in conjunction with, in-person training
27for providers, as appropriate.
28(15) Other services and supports may be provided as set forth
29in Sections 4685, 4686, 4687, 4688, and 4689, when necessary.
30(16) Notwithstanding any other law or regulation, effective July
311, 2009, regional centers shall not purchase experimental
32treatments, therapeutic services, or devices that have not been
33clinically
determined or scientifically proven to be effective or
34safe or for which risks and complications are unknown.
35Experimental treatments or therapeutic services include
36experimental medical or nutritional therapy when the use of the
37product for that purpose is not a general physician practice. For
38regional center consumers receiving these services as part of their
39individual program plan (IPP) or individualized family service
P900 1plan (IFSP) on July 1, 2009, this prohibition shall apply on August
21, 2009.
3(b) (1) Advocacy for, and protection of, the civil, legal, and
4service rights of persons with developmental disabilities as
5established in this division.
6(2) Whenever the advocacy efforts of a regional center to secure
7or protect the civil, legal, or service rights of any of its consumers
8prove ineffective, the regional center or the person with
9developmental
disabilities or his or her parents, legal guardian, or
10other representative may request advocacy assistance from the
11state council.
12(c) The regional center may assist consumers and families
13directly, or through a provider, in identifying and building circles
14of support within the community.
15(d) In order to increase the quality of community services and
16protect consumers, the regional center shall, when appropriate,
17take either of the following actions:
18(1) Identify services and supports that are ineffective or of poor
19quality and provide or secure consultation, training, or technical
20assistance services for any agency or individual provider to assist
21that agency or individual provider in upgrading the quality of
22services or supports.
23(2) Identify
providers of services or supports that may not be
24in compliance with local, state, and federal statutes and regulations
25and notify the appropriate licensing or regulatory authority to
26investigate the possible noncompliance.
27(e) When necessary to expand the availability of needed services
28of good quality, a regional center may take actions that include,
29but are not limited to, the following:
30(1) Soliciting an individual or agency by requests for proposals
31or other means, to provide needed services or supports not presently
32available.
33(2) Requesting funds from the Program Development Fund,
34pursuant to Section 4677, or community placement plan funds
35designated from that fund, to reimburse the startup costs needed
36to initiate a new program of services and supports.
37(3) Using creative and innovative service delivery models,
38including, but not limited to, natural supports.
39(f) Except in emergency situations, a regional center shall not
40provide direct treatment and therapeutic services, but shall utilize
P901 1appropriate public and private community agencies and service
2providers to obtain those services for its consumers.
3(g) When there are identified gaps in the system of services and
4supports or when there are identified consumers for whom no
5provider will provide services and supports contained in his or her
6individual program plan, the department may provide the services
7and supports directly.
8(h) At least annually, regional centers shall provide the
9consumer, his or her parents, legal guardian, conservator, or
10authorized representative a statement of services and
supports the
11regional center purchased for the purpose of ensuring that they are
12delivered. The statement shall include the type, unit, month, and
13cost of services and supports purchased.
Section 5840.2 of the Welfare and Institutions Code
15 is amended to read:
begin delete(a)end deletebegin delete end deleteThe department shall contract for the provision of
17services pursuant to this part with each county mental health
18program in the manner set forth in Section 5897.
The heading of Article 8 (commencing with Section
205869) of Chapter 1 of Part 4 of Division 5 of the Welfare and
21Institutions Code is amended to read:
22
Section 5892.5 of the Welfare and Institutions Code
27 is amended to read:
(a) (1) The California Housing Finance Agency, with
29the concurrence of the State Department of Health Care Services,
30shall release unencumbered Mental Health Services Fund moneys
31dedicated to the Mental Health Services Actbegin delete Housing Programend delete
32begin insert housing programend insert upon the written request of the respective county.
33The county shall use these Mental Health Services Fund moneys
34released by the agency to provide housing assistance to the target
35populations who are identified in Section 5600.3.
36(2) For purposes of this section, “housing assistance” means
37each of the
following:
38(A) Rental assistance or capitalized operating subsidies.
39(B) Security deposits, utility deposits, or other move-in cost
40assistance.
P902 1(C) Utility payments.
2(D) Moving cost assistance.
3(E) Capital funding to build or rehabilitate housing for homeless,
4mentally ill persons or mentally ill persons who are at risk of being
5homeless.
6(b) For purposes of administering those funds released to a
7respective county pursuant to subdivision (a), the county shall
8comply with all of the requirements described in the Mental Health
9Services Act, including, but not limited to, Sections 5664, 5847,
10subdivision (h) of Section 5892,
and 5899.
The heading of Article 1 (commencing with Section
126331) is added to Chapter 2 of Part 2 of Division 6 of the Welfare
13and Institutions Code, to read:
14
Section 9757.5 of the Welfare and Institutions Code
18 is amended and renumbered to read:
(a) The California Department of Aging shall assess
21annually a fee of not less than one dollar and forty cents ($1.40),
22but not more than one dollar and sixty-five cents ($1.65), on a
23health care service plan for each person enrolled in a health care
24service plan as of December 31 of the previous year under a prepaid
25Medicare program that serves Medicare eligible beneficiaries
26within the state, and on a health care service plan for each enrollee
27under a Medicare supplement contract, including a Medicare Select
28contract, as of December 31 of the previous year, to offset the cost
29of counseling
Medicare eligible beneficiaries on the benefits and
30programs available through health maintenance organizations
31instead of the traditional Medicare provider system.
32(b) All fees collected pursuant to this section shall be deposited
33into the State HICAP Fund for the implementation of the Health
34Insurance Counseling and Advocacy Program, and shall be
35available for expenditure for activities as specified in Section 9541
36when appropriated by the Legislature.
37(c) The department may use up to 7 percent of the fee collected
38pursuant to subdivision (a) for the administration, assessment, and
39collection of that fee.
P903 1(d) It is the intent of the Legislature, in enacting this act and
2funding the Health Insurance Counseling and Advocacy Program,
3to maintain a ratio of two dollars ($2) collected from the Insurance
4Fund to every
one dollar ($1) collected pursuant to subdivision
5(a). This ratio shall be reviewed by the Department of Finance
6within 30 days of January 1, 1999, and biennially thereafter to
7examine changes in the demographics of Medicare imminent
8populations, including, but not limited to, the number of citizens
9residing in California 55 years of age and older, the number and
10average duration of counseling sessions performed by counselors
11of the Health Insurance Counseling and Advocacy Program,
12particularly the number of counseling sessions regarding prepaid
13Medicare programs and counseling sessions regarding Medi-Gap
14programs, and the use of other long-term care and health-related
15products. Upon review, the Department of Finance shall make
16recommendations to the Joint Legislative Budget Committee
17regarding appropriate changes to the ratio of funding from the
18Insurance Fund and the fees collected pursuant to subdivision (a).
19(e) It is the intent of the
Legislature that the revenue raised from
20the fee assessed pursuant to subdivision (a), and according to the
21ratio established pursuant to subdivision (d), be used to partially
22offset and reduce the amount of revenue appropriated annually
23from the Insurance Fund for funding of the Health Insurance
24Counseling and Advocacy Program.
25(f) There shall be established in the State Treasury a “State
26HICAP Fund” administered by the California Department of Aging
27for the purpose of collecting fee assessments described in
28subdivision (a), and for the sole purpose of funding the Health
29Insurance Counseling and Advocacy Program.
30(g) The department shall issue a supplemental billing during
31the 2005-06 fiscal year to generate additional revenue authorized
32by the act that amended this section during the 2005 portion of the
332005-06 Regular Session. Notwithstanding subdivision (h), the
34department may use a portion of the additional revenue generated
35in the 2005-06 fiscal year to pay for the costs associated with
36issuing this supplemental billing.
37(h)
end delete
38begin insert(g)end insert It is the intent of the Legislature that, starting in the 2005-06
39fiscal year, two million dollars ($2,000,000) of additional funding
40shall be made available to local HICAP programs, to be derived
P904 1from an increase in the HICAP fee and the corresponding Insurance
2Fund pursuant to subdivision (d). Any additional funding shall
3only be used for local HICAP funding and shall not be used for
4department or local area agencies on aging administration.
Section 10104 of the Welfare and Institutions Code
6 is amended to read:
(a) It is the intent of the Legislature to ensure that the
8impacts of the 2011 realignment of child welfare services, foster
9care, adoptions, and adult protective services programs are
10identified and evaluated initially and over time. It is further the
11intent of the Legislature to ensure that information regarding these
12impacts is publicly available and accessible and can be utilized to
13support the state’s and counties’ effectiveness in delivering these
14critical services and supports.
15(b) The State Department of Social Services shall annually
16report to the appropriate fiscal and policy committees of the
17Legislature, and publicly post on the department’s Internet Web
18sitebegin insert,end insert
a summary of outcome and expenditure data that allows for
19monitoring of changes over time.
20(c) The report shall be submitted and posted by April 15 of each
21year and shall contain expenditures for each county for the
22programs described in clauses (i) to (vii), inclusive, of
23subparagraph (A) of paragraph (16) of subdivision (f) of Section
2430025 of the Government Code. To the extent that the information
25is readily or publicly available, the report shall also contain the
26amount of funds each county receives from the Protective Services
27Growth Special Account created pursuant to Section 30025 of the
28Government Code, child welfare services social worker caseloads
29per county, and the number of authorized positions in the local
30child welfare services agency.
31(d) The department shall consult with legislative staff and with
32stakeholders to develop a reporting format consistent
with the
33Legislature’s desired level of outcome and expenditure reporting
34detail.
Section 11253.5 of the Welfare and Institutions
36Code is amended to read:
(a) All children in an assistance unit for whom school
38attendance is compulsory, except individuals who are eligible for
39the Cal-Learn Program under Article 3.5 (commencing with
40Section 11331), for any period during which that article is
P905 1operative, and children subject to a county school attendance
2project under Article 2 (commencing with Section 18236) of
3Chapter 3.3 of Part 6, shall be required to attend school pursuant
4to subdivision (f).
5(b) Applicants for and recipients of aid under this chapter shall
6be informed of the attendance requirement in subdivision (a) and
7it shall be included in the recipients’ welfare-to-work plan under
8Section 11325.21.
9(c) A recipient shall cooperate in providing
the county with
10documentation routinely available from the school or school district
11of regular attendance of allbegin delete applicableend delete
children described in
12subdivision (a) in the assistance unit when the county determines
13it is appropriate, unless there is good cause for the inability to
14secure that documentation.
15(d) If it is determined by the county that any child in the
16assistance unit is not attending school as required by subdivision
17(a), the family may be informed of how to enroll the child in a
18continuation school within the county and may be screened to
19determine eligibility for family stabilization services pursuant to
20Section 11325.24 and in accordance with county policy and
21procedures. If applicable, the county shall document that the family
22was given this information and was screened for those services.
23The needs of a child in the assistance unit who is 16 years of age
24or older shall not be considered in computing the grant of the
25family under Section 11450 for any month in which the county is
26informed by a school district or a county school
attendance review
27board that the child did not attend school pursuant to subdivision
28(f), unless at least one of the following conditions is present:
29(1) The county is provided with evidence that the child’s
30attendance records are not available.
31(2) The county is provided with evidence that the child has been
32attending school.
33(3) Good cause for school nonparticipation exists at any time
34during the month.
35(4) Any member of the household is eligible to participate in
36family stabilization pursuant to Section 11325.24.
37(5) The county is provided with evidence that the child, parent,
38or caregiver is complying with requirements imposed by a school
39attendance review board, the county probation
department, or the
P906 1district attorney pursuant to Section 48263 or 48263.5 of the
2Education Code.
3(6) A member of the household is cooperating with a plan
4developed by a county child welfare agency.
5(e) A child whose needs have not been considered in computing
6the grant of the family pursuant to this section shall remain eligible
7for services that may lead to attendance in school.
8(f) For the purposes of this section, a child shall be presumed
9to be attending school unless he or she has been deemed a chronic
10truant pursuant to Section 48263.6 of the Education Code.
Section 11325.24 of the Welfare and Institutions
12Code is amended to read:
(a) If, in the course of appraisal pursuant to Section
1411325.2 or at any point during an individual’s participation in
15welfare-to-work activities in accordance with paragraph (1) of
16subdivision (a) of Section 11322.85, it is determined that a recipient
17meets the criteria described in subdivision (b), the recipientbegin delete shall begin insert isend insert eligible to participate in family stabilization.
18beend delete
19(b) (1) A recipientbegin delete shall beend deletebegin insert
isend insert eligible to participate in family
20stabilization if the county determines that his or her family is
21experiencing an identified situation or crisis that is destabilizing
22the family and would interfere with participation in welfare-to-work
23activities and services.
24(2) A situation or a crisis that is destabilizing the family in
25accordance with paragraph (1) may include, but shall not be limited
26to:
27(A) Homelessness or imminent risk of homelessness.
28(B) A lack of safety due to domestic violence.
29(C) Untreated or undertreated behavioral needs, including mental
30health or substance abuse-related needs.
31(c) Family stabilization shall include intensive case
management
32and services designed to support the family in overcoming the
33situation or crisis, which may include, but are not limited to,
34welfare-to-work activities.
35(d) Funds allocated for family stabilization in accordance with
36this section shall be in addition to, and independent of, the county
37allocations made pursuant to Section 15204.2.
38(e) Funds allocated for family stabilization in accordance with
39this section, or the county allocations made pursuant to Section
4015204.2, may be used to provide housing and other needed services
P907 1to a family during any month that a family is participating in family
2stabilization.
3(f) Each county shall submit to the department a plan, as defined
4by the department, regarding how it intends to implement the
5provisions of this section and shall report information to the
6department,
including, but not limited to, the number of recipients
7served pursuant to this section, information regarding the services
8provided, outcomes for the families served, and any lack of
9availability of services. The department shall provide an update
10regarding this information to the Legislature during the 2014-15
11budget process.
12(g) It is the intent of the Legislature that family stabilizationbegin delete isend delete
13begin insert beend insert a voluntary component intended to provide needed services and
14constructive interventions for parents and to assist in barrier
15removal for families facing very difficult needs. Participants in
16family stabilization are encouraged to participate, but the
17Legislature does not intend that parents be sanctioned as part of
18their experience in this program component.
The Legislature further
19intends that recipients refusing or unable to follow their family
20stabilization plans without good cause be returned to the traditional
21welfare-to-work program.
Section 11363 of the Welfare and Institutions Code
23 is amended to read:
(a) Aid in the form of state-funded Kin-GAP shall be
25provided under this article on behalf of any child under 18 years
26of age and to any eligible youth under 19 years of age as provided
27in Section 11403, who satisfies all of the following conditions:
28(1) Has been adjudged a dependent child of the juvenile court
29pursuant to Section 300, or, effective October 1, 2006, a ward of
30the juvenile court pursuant to Section 601 or 602.
31(2) Has been residing for at least six consecutive months in the
32approved home of the prospective relative guardian while under
33the jurisdiction of the juvenile court or a voluntary placement
34agreement.
35(3) Has had a
kinship guardianship established pursuant to
36Section 360 or 366.26.
37(4) Has had his or her dependency jurisdiction terminated after
38January 1, 2000, pursuant to Section 366.3, or his or her wardship
39terminated pursuant to subdivisionbegin delete (d)end deletebegin insert (e)end insert of Section 728,
P908 1concurrently or subsequently to the establishment of the kinship
2guardianship.
3(b) If the conditions specified in subdivision (a) are met and,
4subsequent to the termination of dependency jurisdiction, any
5parent or person having an interest files with the juvenile court a
6petition pursuant to Section 388 to change, modify, or set aside an
7order of the court, Kin-GAP payments shall continue unless and
8until the juvenile court, after holding
a hearing, orders the child
9removed from the home of the guardian, terminates the
10guardianship, or maintains dependency jurisdiction after the court
11concludes the hearing on the petition filed under Section 388.
12(c) A child or nonminor former dependent or ward shall be
13eligible for Kin-GAP payments if he or she meets one of the
14following age criteria:
15(1) He or she is under 18 years of age.
16(2) He or she is under 21 years of age and has a physical or
17mental disability that warrants the continuation of assistance.
18(3) Through December 31, 2011, he or she satisfies the
19conditions of Section 11403, and on and after January 1, 2012, he
20or she satisfies the conditions of Section 11403.01.
21(4) He or she satisfies the conditions as described in subdivision
22(d).
23(d) Commencing January 1, 2012, state-funded Kin-GAP
24payments shall continue for youths who have attained 18 years of
25age and who are under 19 years of age, if they reached 16 years
26of age before the Kin-GAP negotiated agreement payments
27commenced, and as described in Section 10103.5. Effective January
281, 2013, Kin-GAP payments shall continue for youths who have
29attained 18 years of age and are under 20 years of age, if they
30reached 16 years of age before the Kin-GAP negotiated agreement
31payments commenced, and as described in Section 10103.5.
32Effective January 1, 2014, Kin-GAP payments shall continue for
33youths who have attained 18 years of age and are under 21 years
34of age, if they reached 16 years of age before the Kin-GAP
35negotiated agreement payments commenced. To be eligible for
36continued payments, the youth shall satisfy one or more of the
37conditions
specified in paragraphs (1) to (5), inclusive, of
38subdivision (b) of Section 11403.
39(e) Termination of the guardianship with a kinship guardian
40shall terminate eligibility for Kin-GAP unless the conditions in
P909 1Section 11403 apply; provided, however, that if an alternate
2guardian or coguardian is appointed pursuant to Section 366.3 who
3is also a kinship guardian, the alternate or coguardian shall be
4entitled to receive Kin-GAP on behalf of the child pursuant to this
5article. A new period of six months of placement with the alternate
6guardian or coguardian shall not be required if that alternate
7guardian or coguardian has been assessed pursuant to Sections
8361.3 and 361.4 and the court terminates dependency jurisdiction.
9When a nonminor former dependent is receiving Kin-GAP after
1018 years of age and the nonminor former dependent’s former
11guardian dies, the nonminor former dependent may petition the
12court for a hearing pursuant tobegin delete subdivision (e) ofend delete
Sectionbegin delete 388.end delete
13begin insert 388.1.end insert
Section 11403 of the Welfare and Institutions Code
15 is amended to read:
(a) It is the intent of the Legislature to exercise the
17option afforded states under Section 475(8) (42 U.S.C. Sec.
18675(8)), and Section 473(a)(4) (42 U.S.C. Sec. 673(a)(4)) of the
19federal Social Security Act, as contained in the federal Fostering
20Connections to Success and Increasing Adoptions Act of 2008
21(Public Law 110-351), to receive federal financial participation
22for nonminor dependents of the juvenile court who satisfy the
23conditions of subdivision (b), consistent with their transitional
24independent living case plan. Effective January 1, 2012, these
25nonminor dependents shall be eligible to receive support up to 19
26years of age, effective January 1, 2013, up to 20 years of age, and
27effective January 1, 2014, up to 21 years of age, consistent with
28their transitional independent living case plan and as described in
29Section
10103.5. It is the intent of the Legislature both at the time
30of initial determination of the nonminor dependent’s eligibility
31and throughout the time the nonminor dependent is eligible for aid
32pursuant to this section, that the social worker or probation officer
33or Indian tribal placing entity and the nonminor dependent shall
34work together to ensure the nonminor dependent’s ongoing
35eligibility. All case planning shall be a collaborative effort between
36the nonminor dependent and the social worker, probation officer,
37or Indian tribe, with the nonminor dependent assuming increasing
38levels of responsibility and independence.
39(b) A nonminor dependent receiving aid pursuant to this chapter,
40who satisfies the age criteria set forth in subdivision (a), shall meet
P910 1the legal authority for placement and care by being under a foster
2care placement order by the juvenile court, or the voluntary reentry
3agreement as set forth in subdivision (z) of Section
11400, and is
4otherwise eligible for AFDC-FC payments pursuant to Section
511401. A nonminor who satisfies the age criteria set forth in
6subdivision (a), and who is otherwise eligible, shall continue to
7receive CalWORKs payments pursuant to Section 11253 or, as a
8nonminor former dependent or ward, aid pursuant to Kin-GAP
9under Article 4.5 (commencing with Section 11360) or Article 4.7
10(commencing with Section 11385) or adoption assistance payments
11as specified in Chapter 2.1 (commencing with Section 16115) of
12Part 4. Effective January 1, 2012, a nonminor former dependent
13child or ward of the juvenile court who is receiving AFDC-FC
14benefits pursuant to Section 11405 and who satisfies the criteria
15set forth in subdivision (a) shall be eligible to continue to receive
16aid as long as the nonminor is otherwise eligible for AFDC-FC
17benefits under this subdivision. This subdivisionbegin delete shall applyend deletebegin insert
appliesend insert
18 when one or more of the following conditions exist:
19(1) The nonminor is completing secondary education or a
20program leading to an equivalent credential.
21(2) The nonminor is enrolled in an institution which provides
22postsecondary or vocational education.
23(3) The nonminor is participating in a program or activity
24designed to promote, or remove barriers to employment.
25(4) The nonminor is employed for at least 80 hours per month.
26(5) The nonminor is incapable of doing any of the activities
27described in subparagraphs (1) to (4), inclusive, due to a medical
28condition, and that incapability is supported by regularly updated
29information in the case
plan of the nonminor. The requirement to
30update the case plan under this section shall not apply to nonminor
31former dependents or wards in receipt of Kin-GAP program or
32Adoption Assistance Program payments.
33(c) The county child welfare or probation department, Indian
34tribe, consortium of tribes, or tribal organization that has entered
35into an agreement pursuant to Section 10553.1, shall work together
36with a nonminor dependent who is in foster care on his or her 18th
37birthday and thereafter or a nonminor former dependent receiving
38aid pursuant to Section 11405, to satisfy one or more of the
39conditions described in paragraphs (1) to (5), inclusive, of
40subdivision (b) and shall certify the nonminor’s applicable
P911 1condition or conditions in the nonminor’s six-month transitional
2independent living case plan update, and provide the certification
3to the eligibility worker and to the court at each six-month case
4plan review hearing for the nonminor
dependent. Relative
5guardians who receive Kin-GAP payments and adoptive parents
6who receive adoption assistance payments shall be responsible for
7reporting to the county welfare agency that the nonminor does not
8satisfy at least one of the conditions described in subdivision (b).
9The social worker, probation officer, or tribal entity shall verify
10and obtain assurances that the nonminor dependent continues to
11satisfy at least one of the conditions in paragraphs (1) to (5),
12inclusive, of subdivision (b) at each six-month transitional
13independent living case plan update. The six-month case plan
14update shall certify the nonminor’s eligibility pursuant to
15subdivision (b) for the next six-month period. During the six-month
16certification period, the payee and nonminor shall report any
17change in placement or other relevant changes in circumstances
18that may affect payment. The nonminor dependent, or nonminor
19former dependent receiving aid pursuant to subdivision (e) of
20Section 11405, shall be informed of all due
process requirements,
21in accordance with state and federal law, prior to an involuntary
22termination of aid, and shall simultaneously be provided with a
23written explanation of how to exercise his or her due process rights
24and obtain referrals to legal assistance. Any notices of action
25regarding eligibility shall be sent to the nonminor dependent or
26former dependent, his or her counsel, as applicable, and the placing
27worker, in addition to any other payee. Payments of aid pursuant
28to Kin-GAP under Article 4.5 (commencing with Section 11360)
29or Article 4.7 (commencing with Section 11385), adoption
30assistance payments as specified in Chapter 2.1 (commencing with
31Section 16115) of Part 4, or aid pursuant to subdivision (e) of
32Section 11405 that are made on behalf of a nonminor former
33dependent shall terminate subject to the terms of the agreements.
34Subject to federal approval of amendments to the state plan, aid
35payments may be suspended and resumed based on changes of
36circumstances that affect eligibility.
Nonminor former dependents,
37as identified in paragraph (2) of subdivision (aa) of Section 11400,
38are not eligible for reentry under subdivision (e) of Section 388 as
39nonminor dependents under the jurisdiction of the juvenile court,
40begin delete unlessend deletebegin insert but may be eligible for reentry pursuant to Section 388.1 ifend insert
P911 1 (1) the nonminor former dependent was receiving aid pursuant to
2Kin-GAP under Article 4.5 (commencing with Section 11360) or
3Article 4.7 (commencing with Section 11385),begin delete orend delete the nonminor
4former dependent was receiving aid pursuant to subdivision (e) of
5Section 11405, or the nonminor was receiving adoption assistance
6payments as specified in Chapter 2.1 (commencing with Section
716115) of Part 3begin insert,end insert
and (2) the nonminor’s former guardian or
8adoptive parent dies, or no longer provides ongoing support to,
9and no longer receives benefits on behalf of, the nonminor after
10the nonminor turns 18 years of age but before the nonminor turns
1121 years of age. Nonminor former dependents requesting the
12resumption of AFDC-FC payments pursuant to subdivision (e) of
13Section 11405 shall complete the applicable portions of the
14voluntary reentry agreement, as described in subdivision (z) of
15Section 11400.
16(d) A nonminor dependent may receive all of the payment
17directly provided that the nonminor is living independently in a
18supervised placement, as described in subdivision (w) of Section
1911400, and that both the youth and the agency responsible for the
20foster care placement have signed a mutual agreement, as defined
21in subdivision (u) of Section 11400, if the youth is capable of
22making an informed agreement, that documents the continued need
23for
supervised out-of-home placement, and the nonminor’s and
24social worker’s or probation officer’s agreement to work together
25to facilitate implementation of the mutually developed supervised
26placement agreement and transitional independent living case plan.
27(e) Eligibility for aid under this section shall not terminate until
28the nonminor dependent attains the age criteria, as set forth in
29subdivision (a), but aid may be suspended when the nonminor
30dependent no longer resides in an eligible facility, as described in
31Section 11402, or is otherwise not eligible for AFDC-FC benefits
32under Section 11401, or terminated at the request of the nonminor,
33or after a court terminates dependency jurisdiction pursuant to
34Section 391, delinquency jurisdiction pursuant to Section 607.2,
35or transition jurisdiction pursuant to Section 452. AFDC-FC
36benefits to nonminor dependents, may be resumed at the request
37of the nonminor by completing a voluntary reentry
agreement
38pursuant to subdivision (z) of Section 11400, before or after the
39filing of a petition filed pursuant to subdivision (e) of Section 388
40after a court terminates dependency or transitional jurisdiction
P913 1pursuant to Section 391, or delinquency jurisdiction pursuant to
2Section 607.2. The county welfare or probation department or
3Indian tribal entity that has entered into an agreement pursuant to
4Section 10553.1 shall complete the voluntary reentry agreement
5with the nonminor who agrees to satisfy the criteria of the
6agreement, as described in subdivision (z) of Section 11400. The
7county welfare department or tribal entity shall establish a new
8child-only Title IV-E eligibility determination based on the
9nonminor’s completion of the voluntary reentry agreement pursuant
10to Section 11401. The beginning date of aid for either federal or
11state AFDC-FC for a reentering nonminor who is placed in foster
12care is the date the voluntary reentry agreement is signed or the
13nonminor is placed, whichever is later.
The county welfare
14department, county probation department, or tribal entity shall
15provide a nonminor dependent who wishes to continue receiving
16aid with the assistance necessary to meet and maintain eligibility.
17(f) (1) The county having jurisdiction of the nonminor
18dependent shall remain the county of payment under this section
19regardless of the youth’s physical residence. Nonminor former
20dependents receiving aid pursuant to subdivision (e) of Section
2111405 shall be paid by their county of residence. Counties may
22develop courtesy supervision agreements to provide case
23management and independent living services by the county of
24residence pursuant to the nonminor dependent’s transitional
25independent living case plan. Placements made out of state are
26subject to the applicable requirements of the Interstate Compact
27on Placement of Children, pursuant to Part 5 (commencing with
28Section 7900) of Division 12 of the Family
Code.
29(2) The county welfare department, county probation
30department, or tribal entity shall notify all foster youth who attain
3116 years of age and are under the jurisdiction of that county or
32tribe, including those receiving Kin-GAP, and AAP, of the
33existence of the aid prescribed by this section.
34(3) The department shall seek any waiver to amend its Title
35IV-E State Plan with the Secretary of the United States Department
36of Health and Human Services necessary to implement this section.
37(g) (1) Subject to paragraph (3), a county shall pay the
38nonfederal share of the cost of extending aid pursuant to this
39section to eligible nonminor dependents who have reached 18
40years of age and who are under the jurisdiction of the county,
P914 1including AFDC-FC payments pursuant to Section 11401, aid
2pursuant to
Kin-GAP under Article 4.7 (commencing with Section
311385), adoption assistance payments as specified in Chapter 2.1
4(commencing with Section 16115) of Part 4, and aid pursuant to
5Section 11405 for nonminor dependents who are residing in the
6county as provided in paragraph (1) of subdivision (f). A county
7shall contribute to the CalWORKs payments pursuant to Section
811253 and aid pursuant to Kin-GAP under Article 4.5 (commencing
9with Section 11360) at the statutory sharing ratios in effect on
10January 1, 2012.
11(2) Subject to paragraph (3), a county shall pay the nonfederal
12share of the cost of providing permanent placement services
13pursuant to subdivision (c) of Section 16508 and administering
14the Aid to Families with Dependent Children Foster Care program
15pursuant to Section 15204.9. For purposes of budgeting, the
16department shall use a standard for the permanent placement
17services that is equal to the midpoint between the budgeting
18standards
for family maintenance services and family reunification
19services.
20(3) (A) (i) Notwithstanding any other law, a county’s required
21total contribution pursuant to paragraphs (1) and (2), excluding
22costs incurred pursuant to Section 10103.5, shall not exceed the
23amount of savings in Kin-GAP assistance grant expenditures
24realized by the county from the receipt of federal funds due to the
25implementation of Article 4.7 (commencing with Section 11385),
26and the amount of funding specifically included in the Protective
27Services Subaccount within the Support Services Account within
28the Local Revenue Fund 2011, plus any associated growth funding
29from the Support Services Growth Subaccount within the Sales
30and Use Tax Growth Account to pay the costs of extending aid
31pursuant to this section.
32(ii) A county, at its own discretion, may expend
additional funds
33beyond the amounts identified in clause (i). These additional
34amounts shall not be included in any cost and savings calculations
35or comparisons performed pursuant to this section.
36(B) Beginning in the 2011-12 fiscal year, and for each fiscal
37year thereafter, funding and expenditures for programs and
38activities under this section shall be in accordance with the
39requirements provided in Sections 30025 and 30026.5 of the
P915 1Government Code. In addition, the following are available to the
2counties for the purpose of funding costs pursuant to this section:
3(i) The savings in Kin-GAP assistance grant expenditures
4realized from the receipt of federal funds due to the implementation
5of Article 4.7 (commencing with Section 11385).
6(ii) The savings realized from the change in federal funding for
7adoption
assistance resulting from the enactment of Public Law
8110-351 and consistent with subdivision (d) of Section 16118.
9(4) (A) The limit on the county’s total contribution pursuant to
10paragraph (3) shall be assessed by the State Department of Social
11Services, in conjunction with the California State Association of
12Counties, in 2015-16, to determine if it shall be removed. The
13assessment of the need for the limit shall be based on a
14determination on a statewide basis of whether the actual county
15costs of providing extended care pursuant to this section, excluding
16costs incurred pursuant to Section 10103.5, are fully funded by
17the amount of savings in Kin-GAP assistance grant expenditures
18realized by the counties from the receipt of federal funds due to
19the implementation of Article 4.7 (commencing with Section
2011385) and the amount of funding specifically included in the
21Protective Services Subaccount within the Support
Services
22Account within the Local Revenue Fund 2011 plus any associated
23growth funding from the Support Services Growth Subaccount
24within the Sales and Use Tax Growth Account to pay the costs of
25extending aid pursuant to this section.
26(B) If the assessment pursuant to subparagraph (A) shows that
27the statewide total costs of extending aid pursuant to this section,
28excluding costs incurred pursuant to Section 10103.5, are fully
29funded by the amount of savings in Kin-GAP assistance grant
30expenditures realized by the counties from the receipt of federal
31funds due to the implementation of Article 4.7 (commencing with
32Section 11385) and the amount of funding specifically included
33in the Protective Services Subaccount within the Support Services
34Account within the Local Revenue Fund 2011 plus any associated
35growth funding from the Support Services Growth Subaccount
36within the Sales and Use Tax Growth Account to pay the costs of
37extending aid pursuant
to this section, the Department of Finance
38shall certify that fact, in writing, and shall post the certification on
39its Internet Web site, at which time subparagraph (A) of paragraph
40(3) shall no longer be implemented.
P916 1(h) It is the intent of the Legislature thatbegin delete noend deletebegin insert aend insert county currently
2participating in the Child Welfare Demonstration Capped
3Allocation Projectbegin insert notend insert be adversely impacted by the department’s
4exercise of its option to extend foster care benefits pursuant to
5Section 673(a)(4) and Section 675(8) of Title 42 of the United
6States Code in the federal Social Security Act, as contained in the
7federal Fostering Connections to Success and
Increasing Adoptions
8Act of 2008 (Public Law 110-351). Therefore, the department shall
9negotiate with the United States Department of Health and Human
10Services on behalf of those counties that are currently participating
11in the demonstration project to ensure that those counties receive
12reimbursement for these new programs outside of the provisions
13of those counties’ waiver under Subtitle IV-E (commencing with
14Section 470) of the federal Social Security Act (42 U.S.C. Sec.
15670 et seq.).
16(i) The department, on or before July 1, 2013, shall develop
17regulations to implement this section in consultation with
18concerned stakeholders, including, but not limited to,
19representatives of the Legislature, the County Welfare Directors
20Association, the Chief Probation Officers of California, the Judicial
21Council, representatives of Indian tribes, the California Youth
22Connection, former foster youth, child advocacy organizations,
23labor organizations, juvenile
justice advocacy organizations, foster
24caregiver organizations, and researchers. In the development of
25these regulations, the department shall consider its Manual of
26Policy and Procedures, Division 30, Chapter 30-912, 913, 916,
27and 917, as guidelines for developing regulations that are
28appropriate for young adults who can exercise incremental
29responsibility concurrently with their growth and development.
30The department, in its consultation with stakeholders, shall take
31into consideration the impact to the Automated Child Welfare
32Services Case Management Services (CWS-CMS) and required
33modifications needed to accommodate eligibility determination
34under this section, benefit issuance, case management across
35counties, and recognition of the legal status of nonminor
36dependents as adults, as well as changes to data tracking and
37reporting requirements as required by the Child Welfare System
38Improvement and Accountability Act as specified in Section
3910601.2, and federal outcome measures as required by the federal
40
John H. Chafee Foster Care Independence Program (42 U.S.C.
P917 1Sec. 677(f)). In addition, the department, in its consultation with
2stakeholders, shall define the supervised independent living setting
3which shall include, but not be limited to, apartment living, room
4and board arrangements, college or university dormitories, and
5shared roommate settings, and define how those settings meet
6health and safety standards suitable for nonminors. The department,
7in its consultation with stakeholders, shall define the six-month
8certification of the conditions of eligibility pursuant to subdivision
9(b) to be consistent with the flexibility provided by federal policy
10guidance, to ensure that there are ample supports for a nonminor
11to achieve the goals of his or her transition independent living case
12plan. The department, in its consultation with stakeholders, shall
13ensure that notices of action and other forms created to inform the
14nonminor of due process rights and how to access them shall be
15developed, using language
consistent with the special needs of the
16nonminor dependent population.
17(j) Notwithstanding the Administrative Procedure Act, Chapter
183.5 (commencing with Section 11340) of Part 1 of Division 3 of
19Title 2 of the Government Code, the department shall prepare for
20implementation of the applicable provisions of this section by
21publishing, after consultation with the stakeholders listed in
22subdivision (i), all-county letters or similar instructions from the
23director by October 1, 2011, to be effective January 1, 2012.
24Emergency regulations to implement the applicable provisions of
25this act may be adopted by the director in accordance with the
26Administrative Procedure Act. The initial adoption of the
27emergency regulations and one readoption of the emergency
28regulations shall be deemed to be an emergency and necessary for
29the immediate preservation of the public peace, health, safety, or
30general welfare. Initial emergency regulations and the first
31
readoption of those emergency regulations shall be exempt from
32review by the Office of Administrative Law. The emergency
33regulations authorized by this section shall be submitted to the
34Office of Administrative Law for filing with the Secretary of State
35and shall remain in effect for no more than 180 days.
Section 11460 of the Welfare and Institutions Code
37 is amended to read:
(a) Foster care providers shall be paid a per child per
39month rate in return for the care and supervision of the AFDC-FC
40child placed with them. The department is designatedbegin insert asend insert the single
P918 1organizational unit whose duty it shall be to administer a state
2system for establishing rates in the AFDC-FC program. State
3functions shall be performed by the department or by delegation
4of the department to county welfare departments or Indian tribes,
5consortia of tribes, or tribal organizations that have entered into
6an agreementbegin insert with the departmentend insert pursuant to Section 10553.1.
7(b) “Care and supervision” includes food, clothing, shelter, daily
8supervision, school supplies, a child’s personal incidentals, liability
9insurance with respect to a child, reasonable travel to the child’s
10home for visitation, and reasonable travel for the child to remain
11in the school in which he or she is enrolled at the time of
12placement. Reimbursement for the costs of educational travel, as
13provided for in this subdivision, shall be made pursuant to
14procedures determined by the department, in consultation with
15representatives of county welfare and probation directors, and
16additional stakeholders, as appropriate.
17(1) For a child placed in a group home, care and supervision
18shall also include reasonable administration and operational
19activities necessary to provide the items listed in this subdivision.
20(2) For a child placed in a group home, care and supervision
21
may also include reasonable activities performed by social workers
22employed by the group home providerbegin delete whichend deletebegin insert
thatend insert are not otherwise
23considered daily supervision or administration activities.
24(c) It is the intent of the Legislature to establish the maximum
25level of state participation in out-of-state foster care group home
26program rates effective January 1, 1992.
27(1) The department shall develop regulations that establish the
28method for determining the level of state participation for each
29out-of-state group home program. The department shall consider
30all of the following methods:
31(A) A standardized system based on the level of care and
32services per child per month as detailed in Section 11462.
33(B) A systembegin delete whichend deletebegin insert
thatend insert considers the actual allowable and
34reasonable costs of care and supervision incurred by the program.
35(C) A systembegin delete whichend deletebegin insert thatend insert considers the rate established by the
36host state.
37(D) Any other appropriate methods as determined by the
38department.
39(2) State reimbursement for the AFDC-FC group home rate to
40be paid to an out-of-state program on or after January 1, 1992,
P919 1shall only be paid to programs which have done both of the
2following:
3(A) Submitted a rate application to the department and received
4a determination of the level
of state participation.
5(i) The level of state participation shall not exceed the current
6fiscal year’s standard rate for rate classification level 14.
7(ii) The level of state participation shall not exceed the rate
8determined by the ratesetting authority of the state in which the
9facility is located.
10(iii) The level of state participation shall not decrease for any
11child placed prior to January 1, 1992, who continues to be placed
12in the same out-of-state group home program.
13(B) Agreed to comply with information requests, and program
14and fiscal audits as determined necessary by the department.
15(3) State reimbursement for an AFDC-FC rate paid on or after
16January 1, 1993, shall only be paid
to a group home organized and
17operated on a nonprofit basis.
18(d) A foster care provider that accepts payments, following the
19effective date of this section, based on a rate established under this
20section, shall not receive rate increases or retroactive payments as
21the result of litigation challenging rates established prior to the
22effective date of this section. Thisbegin delete shall applyend deletebegin insert subdivision appliesend insert
23 regardless of whether a provider is a party to the litigation or a
24member of a class covered by the litigation.
25(e) begin deleteNothing shall preclude a end deletebegin insertA
end insertcountybegin insert is not precludedend insert from
26using a portion of its county funds to increase rates paid to family
27homes and foster family agencies within that county, and to make
28payments for specialized care increments, clothing allowances, or
29infant supplements to homes within that county, solely at that
30county’s expense.
31(f) begin deleteNothing shall preclude a end deletebegin insertA end insertcountybegin insert is not precludedend insert from
32providing a supplemental rate to serve commercially sexually
33exploited foster children to provide for the additional care and
34supervision needs of these
children. To the extent that federal
35financial participation is available, it is the intent of the Legislature
36that the federal fundingbegin delete shallend delete be utilized.
Section 11461.3 of the Welfare and Institutions
38Code is amended to read:
(a) The Approved Relative Caregiver Funding Option
40Program is hereby established for the purpose of making the
P920 1amount paid to approved relative caregivers for the in-home care
2of children placed with them who are ineligible for AFDC-FC
3payments equal to the amount paid on behalf of children who are
4eligible for AFDC-FC payments. This is an optional program for
5counties choosing to participate, and in so doing, participating
6counties agree to the terms of this section as a condition of their
7participation. It is the intent of the Legislature that the funding
8described in paragraph (1) of subdivision (e) for the Approved
9Relative Caregiver Funding Option Program bebegin delete appropriated,end delete
10begin insert
appropriatedend insert
and available for use from January through December
11of each year, unless otherwise specified.
12(b) Subject to subdivision (c), effective January 1, 2015, counties
13shall pay an approved relative caregiver a per child per month rate
14in return for the care and supervision, as defined in subdivision
15(b) of Section 11460, of a child that is placed with the relative
16caregiver that is equal to the basic rate paid to foster care providers
17pursuant to subdivision (g) of Section 11461, if both of the
18following conditions are met:
19(1) The county with payment responsibilitybegin delete hasend delete notified the
20department in writing by October 1 of the year before participation
21begins of its decision to participate in the Approved Relative
22Caregiver Funding Option Program.
23(2) The related child placed in the home meets all of the
24following requirements:
25(A) The child resides in the State of California.
26(B) The child is described by subdivision (b), (c), or (e) of
27Section 11401 and the county welfare department or the county
28probation department is responsible for the placement and care of
29the child.
30(C) The child is not eligible for AFDC-FC while placed with
31the approved relative caregiver because the child is not eligible
32for federal financial participation in the AFDC-FC payment.
33(c) A county’s election to participate in the Approved Relative
34Caregiver Funding Option Program shall affirmatively indicate
35that the county understands and agrees to all of the
following
36conditions:
37(1) Commencing October 1, 2014, the county shall notify the
38department in writing of its decision to participate in the Approved
39Relative Caregiver Funding Option Program. Failure to make
40timely notification, without good cause as determined by the
P921 1department, shall preclude the county from participating in the
2program for the upcoming year. Annually thereafter, any county
3not presently participating who elects to do so shall notify the
4department in writing no later than October 1 of its decision to
5participate for the upcoming calendar year.
6(2) The county shall confirm that it will make per child per
7month payments to all approved relative caregivers on behalf of
8eligible children in the amount specified in subdivision (b) for the
9duration of the participation of the county in this program.
10(3) The county shall confirm that it will be solely responsible
11to pay any additional costs needed to make all payments pursuant
12to subdivision (b) if the state and federal funds allocated to the
13Approved Relative Caregiver Funding Option Program pursuant
14to paragraph (1) of subdivision (e) are insufficient to make all
15eligible payments.
16(d) (1) A county deciding to opt out of the Approved Relative
17Caregiver Funding Option Program shall provide at least 120 days’
18prior written notice of that decision to the department. Additionally,
19the county shall provide at least 90 days’ prior written notice to
20the approved relative caregiver or caregivers informing them that
21his or her per child per month payment will be reduced and the
22date that the reduction will occur.
23(2) The department shall presume all counties have opted out
24of the Approved Relative Caregiver Funding
Option Program if
25the funding appropriated in subclause (II) of clause (i) of
26subparagraph (B) of paragraph (1) of subdivision (e), including
27any additional funds appropriated pursuant to clause (ii) of
28subparagraph (B) of paragraph (1) of subdivision (e), is reduced,
29unless a county notifies the department in writing of its intent to
30opt in within 60 days of enactment of the State Budget. The
31counties shall provide at least 90 days’ prior written notice to the
32approved relative caregiver or caregivers informing them that his
33or her per child per month payment will be reduced, and the date
34that the reduction will occur.
35(3) begin deleteAny end deletebegin insertA end insertreduction in payments received by an approved
36relative caregiver on behalf of a child under this section that results
37from a
decision by a county, including the presumed opt-out
38pursuant to paragraph (2), to not participate in the Approved
39Relative Caregiver Funding Option Program shall be exempt from
40state hearing jurisdiction under Section 10950.
P922 1(e) (1) The following funding shall be used for the Approved
2Relative Caregiver Funding Option Program:
3(A) The applicable regional per-child CalWORKs grant.
4(B) (i) General Fund resources that do not count toward the
5state’s maintenance of effort requirements under Section
6609(a)(7)(B)(i) of Title 42 of the United States Code. For this
7purpose, the following money is hereby appropriated:
8(I) The sum of thirty million dollars ($30,000,000) from the
9General Fund for the period January 1, 2015, through December
10
31, 2015.
11(II) The sum of thirty million dollars ($30,000,000) from the
12General Fund in each calendar year thereafter, as cumulatively
13adjusted annually by the California Necessities Index used for each
14May Revision of the Governor’s Budget, to be used in each
15respective calendar year.
16(ii) To the extent that the appropriation made in subclause (I)
17begin insert of clause (i)end insert is insufficient to fully fund the base caseload of
18approved relative caregivers as of July 1, 2014, for the period of
19time described in subclause (I)begin insert of clause (i)end insert, as jointly determined
20by the department and the County Welfarebegin delete Directors’end deletebegin insert
Directorsend insert
21 Association and approved by the Department of Finance on or
22before October 1, 2015, the amounts specified in subclauses (I)
23and (II)begin insert of clause (i)end insert shall be increased in the respective amounts
24necessary to fully fund that base caseload. Thereafter, the adjusted
25amount of subclause (II)begin insert of clause (i)end insert, and the other terms of that
26provision, including an annual California Necessities Index
27adjustment to its amount, shall apply.
28(C) County funds only to the extent required under paragraph
29(3) of subdivision (c).
30(D) This section is intended to appropriate the funding necessary
31to fully fund the base caseload of approved
relative caregivers,
32defined as the number of approved relative caregivers caring for
33a child who is not eligible to receive AFDC-FC payments, as of
34July 1, 2014.
35(2) Funds available pursuant to subparagraphs (A) and (B) of
36paragraph (1) shall be allocated to participating counties
37proportionate to the number of their approved relative caregiver
38placements, using a methodology and timing developed by the
39department, following consultation with county human services
40agencies and their representatives.
P923 1(3) Notwithstanding subdivision (c), if in any calendar year the
2entire amount of funding appropriated by the state for the Approved
3Relative Caregiver Funding Option Program has not been fully
4allocated tobegin insert,end insert or utilized bybegin insert,end insert
counties, a county that has paid any
5funds pursuant to subparagraph (C) of paragraph (1) of subdivision
6(e) may request reimbursement for those funds from the
7department. The authority of the department to approve the requests
8shall be limited by the amount of available unallocated funds.
9(f) An approved relative caregiver receiving payments on behalf
10of a child pursuant to this section shall not be eligible to receive
11additional CalWORKs payments on behalf of the same child under
12Section 11450.
13(g) To the extent permitted by federal law, payments received
14by the approved relative caregiver from the Approved Relative
15Caregiver Funding Option Program shall not be considered income
16for the purpose of determining other public benefits.
17(h) Prior to referral of any individual or recipient, or that
18person’s
case, to the local child support agency for child support
19services pursuant to Section 17415 of the Family Code, the county
20human services agency shall determine if an applicant or recipient
21has good cause for noncooperation, as set forth in Section
2211477.04. If the applicant or recipient claims good cause exception
23at any subsequent time to the county human services agency or
24the local child support agency, the local child support agency shall
25suspend child support services until the county social services
26agency determines the good cause claim, as set forth in Section
2711477.04. If good cause is determined to exist, the local child
28support agency shall suspend child support services until the
29applicant or recipient requests their resumption, and shall take
30other measures that are necessary to protect the applicant or
31recipient and the children. If the applicant or recipient is the parent
32of the child for whom aid is sought and the parent is found to have
33not cooperated without good cause as provided in
Section
3411477.04, the applicant’s or recipient’s family grant shall be
35reduced by 25 percent for the time the failure to cooperate lasts.
36(i) Consistent with Section 17552 of the Family Code, if aid is
37paid under this chapter on behalf of a child who is under the
38jurisdiction of the juvenile court and whose parent or guardian is
39receiving reunification services, the county human services agency
40shall determine, prior to referral of the case to the local child
P924 1support agency for child support services, whether the referral is
2in the best interest of the child, taking into account both of the
3following:
4(1) Whether the payment of support by the parent will pose a
5barrier to the proposed reunification in that the payment of support
6will compromise the parent’s ability to meet the requirements of
7the parent’s reunification plan.
8(2) Whether the payment of support by the parent will pose a
9barrier to the proposed reunification in that the payment of support
10will compromise the parent’s current or future ability to meet the
11financial needs of the child.
Section 11477 of the Welfare and Institutions Code
13 is amended to read:
As a condition of eligibility for aid paid under this
15chapter, each applicant or recipient shall do all of the following:
16(a) (1) Do either of the following:
17(i)
end delete
18begin insert(A)end insert For applications received before October 1, 2009, assign to
19the county any rights to support from any other person the applicant
20or recipient may have on his or her own behalf or on behalf of any
21other family member for whom the applicant or recipient is
22applying for or
receiving aid, not exceeding the total amount of
23cash assistance provided to the family under this chapter. Receipt
24of public assistance under this chapterbegin delete shall operateend deletebegin insert operatesend insert as
25an assignment by operation of law. An assignment of support rights
26to the county shall also constitute an assignment to the state. If
27support rights are assigned pursuant to this subdivision, the
28assignee may become an assignee of record by the local child
29support agency or other public official filing with the court clerk
30an affidavit showing that an assignment has been made or that
31there has been an assignment by operation of law. This procedure
32does not limit any other means by which the assignee may become
33an assignee of record.
34(ii)
end delete
35begin insert(B)end insert For applications received on or after October 1, 2009, assign
36to the county any rights to support from any other person the
37applicant or recipient may have on his or her own behalf, or on
38behalf of any other family member for whom the applicant or
39recipient is applying for or receiving aid. The assignment shall
40apply only to support that accrues during the period of time that
P925 1the applicant is receiving assistance under this chapter, and shall
2not exceed the total amount of cash assistance provided to the
3family under this chapter. Receipt of public assistance under this
4chapter shall operate as an assignment by operation of law. An
5assignment of support rights to the county shall also constitute an
6assignment to the state. If support rights are assigned pursuant to
7this subdivision, the assignee may become an assignee of record
8by the
local child support agency or other public official filing
9with the court clerk an affidavit showing that an assignment has
10been made or that there has been an assignment by operation of
11law. This procedure does not limit any other means by which the
12assignee may become an assignee of record.
13(2) Support that has been assigned pursuant to paragraph (1)
14and that accrues while the family is receiving aid under this chapter
15shall be permanently assigned until the entire amount of aid paid
16has been reimbursed.
17(3) If the federal government does not permit states to adopt the
18same order of distribution for preassistance and postassistance
19child support arrears that are assigned on or after October 1, 1998,
20support arrears that accrue before the family receives aid under
21this chapter that are assigned pursuant to this subdivision shall be
22assigned as follows:
23(A) Child support assigned prior to January 1, 1998, shall be
24permanently assigned until aid is no longer received and the entire
25amount of aid has been reimbursed.
26(B) Child support assigned on or after January 1, 1998, but prior
27to October 1, 2000, shall be temporarily assigned until aid under
28this chapter is no longer received and the entire amount of aid paid
29has been reimbursed or until October 1, 2000, whichever comes
30first.
31(C) On or after October 1, 2000, support assigned pursuant to
32this subdivision that was not otherwise permanently assigned shall
33be temporarily assigned to the county until aid is no longer
34received.
35(D) On or after October 1, 2000, support that was temporarily
36assigned pursuant to this subdivision shall, when a payment is
37
received from the federal tax intercept program, be temporarily
38assigned until the entire amount of aid paid has been reimbursed.
P926 1(4) If the federal government permits states to adopt the same
2order of distribution for preassistance and postassistance child
3support arrears, child support arrears shall be assigned, as follows:
4(A) Child support assigned pursuant to this subdivision prior
5to October 1, 1998, shall be assigned until aid under this chapter
6is no longer received and the entire amount has been reimbursed.
7(B) On or after October 1, 1998, child support assigned pursuant
8to this subdivision that accrued before the family receives aid under
9this chapter and that was not otherwise permanently assigned, shall
10be temporarily assigned until aid under this chapter is no longer
11received.
12(C) On or after October 1, 1998, support that was temporarily
13assigned pursuant to this subdivision shall, when a payment is
14received from the federal tax intercept program, be temporarily
15assigned until the entire amount of aid paid has been reimbursed.
16(b) (1) Cooperate with the county welfare department and local
17child support agency in establishing the paternity of a child of the
18applicant or recipient born out of wedlock with respect to whom
19aid is claimed, and in establishing, modifying, or enforcing a
20support order with respect to a child of the individual for whom
21aid is requested or obtained, unless the applicant or recipient
22qualifies for a good cause exception pursuant to Section 11477.04.
23The granting of aid shall not be delayed or denied if the applicant
24is otherwise eligible,begin delete if the applicantend delete
completes the necessary
25formsbegin insert,end insert and agrees to cooperate with the local child support agency
26in securing support and determining paternity, if applicable. The
27local child support agency shall have staff available, in person or
28by telephone, at all county welfare offices and shall conduct an
29interview with each applicant to obtain information necessary to
30establish paternity and establish, modify, or enforce a support order
31at the time of the initial interview with the welfare office. The local
32child support agency shall make the determination of cooperation.
33If the applicant or recipient attests under penalty of perjury that
34he or she cannot provide the information required by this
35subdivision, the local child support agency shall make a finding
36regarding whether the individual could reasonably be expected to
37provide the information before the local child support agency
38determines whether
the individual is cooperating. In making the
39finding, the local child support agency shall consider all of the
40following:
P927 1(A) The age of the child for whom support is sought.
2(B) The circumstances surrounding the conception of the child.
3(C) The age or mental capacity of the parent or caretaker of the
4child for whom aid is being sought.
5(D) The time that has elapsed since the parent or caretaker last
6had contact with the alleged father or obligor.
7(2) Cooperation includes all of the following:
8(A) Providing the name of the alleged parent or obligor and
9other information about that person if known to the applicant or
10
recipient, such as address, social security number, telephone
11number, place of employment or school, and the names and
12addresses of relatives or associates.
13(B) Appearing at interviews, hearings, and legal proceedingsbegin insert,end insert
14 provided the applicant or recipient is provided with reasonable
15advance notice of the interview, hearing, or legal proceeding and
16does not have good cause not to appear.
17(C) If paternity is at issue, submitting to genetic tests, including
18genetic testing of the child, if necessary.
19(D) Providing any additional information known tobegin insert,end insert or
20reasonably obtainable bybegin insert,end insert
the applicant or recipient necessary to
21establish paternity or to establish, modify, or enforce a child
22support order.
23(3) A recipient or applicant shall not be required to sign a
24voluntary declaration of paternity, as set forth in Chapter 3
25(commencing with Section 7570) of Part 2 of Division 12 of the
26Family Code, as a condition of cooperation.
27(c) (1) This sectionbegin delete shallend deletebegin insert doesend insert not apply if all of the adults are
28excluded from the assistance unit pursuant to Section 11251.3,
2911454, or 11486.5.
30(2) It is the intent of the Legislature that the regular receipt of
31child support in the preceding
reporting period be considered in
32determining reasonably anticipated income for the following
33reporting period.
34(3) In accordance with Sections 11265.2 and 11265.46, if the
35income of an assistance unit described in paragraph (1) includes
36reasonably anticipated income derived from child support, the
37amount established in Section 17504 of the Family Code and
38Section 11475.3 of the Welfare and Institutions Code of any
39amount of child support received each month shall not be
40considered income or resources and shall not be deducted from
P928 1the amount of aid to which the assistance unit otherwise would be
2eligible.
Section 12104 of the Welfare and Institutions Code,
4as added by Section 3 of Chapter 27 of the 3rd Extraordinary
5Session of the Statutes of 2009, is repealed.
Notwithstanding any other provision of law, upon the
7order of the Director of Finance, the Director of Social Services
8shall defer all supplemental payments to the federal government
9required pursuant to subdivision (b) of Section 12100 in February
102010 and March 2010 and, instead, make payments for those
11months after April 20, 2010, but no later than May 31, 2010.
Section 12104 of the Welfare and Institutions Code,
13as added by Section 5 of Chapter 633 of the Statutes of 2009, is
14amended to read:
Notwithstanding any otherbegin delete provision ofend delete law, upon the
16order of the Director of Finance, the Director of Social Services
17shall defer all supplemental payments to the federal government
18required pursuant to subdivision (b) of Section 12100 in February
192010 and March 2010 and, instead, make payments for those
20months after April 20, 2010, but no later than May 31, 2010.
Section 12300.4 of the Welfare and Institutions
22Code is amended to read:
(a) Notwithstanding any other law, including, but
24not limited to, Chapter 10 (commencing with Section 3500) of
25Division 4 of Title 1 of the Government Code and Title 23
26(commencing with Section 110000) of the Government Code, a
27recipient who is authorized to receive in-home supportive services
28pursuant to this article, or Section 14132.95, 14132.952, or
2914132.956, administered by the State Department of Social
30Services, or waiver personal care services pursuant to Section
3114132.97, administered by the State Department of Health Care
32Services, or any combination of these services, shall direct these
33authorized services, and the authorized services shall be performed
34by a provider or providers within a workweek and in a manner
35that complies with the requirements of this section.
36(b) (1) A workweek is defined as beginning at 12:00 a.m. on
37Sunday and includes the next consecutive 168 hours, terminating
38at 11:59 p.m. the following Saturday.
39(2) A provider of services specified in subdivision (a) shall not
40work a total number of hours within a workweek that exceeds 66,
P929 1as reduced by the net percentage defined by Sections 12301.02
2and 12301.03, as applicable, and in accordance with subdivision
3(d). The total number of hours worked within a workweek by a
4provider is defined as the sum of the following:
5(A) All hours worked providing authorized services specified
6in subdivision (a).
7(B) Travel time as defined in subdivision (f), only if federal
8financial participation is not available to compensate for that travel
9time. If federal financial participation is
available for travel time
10as defined in subdivision (f), the travel time shall not be included
11in the calculation of the total weekly hours worked within a
12workweek.
13(3) (A) If the authorized in-home supportive services of a
14recipient cannot be provided by a single provider as a result of the
15limitation specified in paragraph (2), it is the responsibility of the
16recipient to employ an additional provider or providers, as needed,
17to ensure his or her authorized services are provided within his or
18her total weekly authorized hours of services established pursuant
19to subdivision (b) of Section 12301.1.
20(B) (i) It is the intent of the Legislature that this sectionbegin delete shallend delete
21 not result in reduced services authorized to recipients of waiver
22personal care services
defined in subdivision (a).
23(ii) The State Department of Health Care Services shall work
24with and assist recipients receiving services pursuant to the Nursing
25Facility/Acute Hospital Waiver who are at or near their individual
26cost cap, as that term is used in the waiver, to avoid a reduction in
27the recipient’s services that may result because of increased
28overtime pay for providers. As part of this effort, the department
29shall consider allowing the recipient to exceed the individual cost
30cap, if appropriate. The department shall provide timely
31information to waiver recipients as to the steps that will be taken
32to implement this clause.
33(4) (A) A provider shall inform each of his or her recipients of
34the number of hours that the provider is available to work for that
35recipient, in accordance with this section.
36(B) A recipient, his or her authorized representative, or any
37other entity, including any person or entity providing services
38pursuant to Section 14186.35, shall not authorize any provider to
39work hours that exceed the applicable limitation or limitations of
40this section.
P930 1(C) A recipient may authorize a provider to work hours in excess
2of the recipient’s weekly authorized hours established pursuant to
3Section 12301.1 without notification of the county welfare
4department, in accordance with both of the following:
5(i) The authorization does not result in more than 40 hours of
6authorized services per week being provided.
7(ii) The authorization does not exceed the recipient’s authorized
8hours of monthly services pursuant to paragraph (1) of subdivision
9(b) of
Section 12301.1.
10(5) For providers of in-home supportive services, the State
11Department of Social Services or a county may terminate the
12provider from providing services under the IHSS program if a
13provider continues to violate the limitations of this section on
14multiple occasions.
15(c) Notwithstanding any other law, only federal law and
16regulations regarding overtime compensation apply to providers
17of services defined in subdivision (a).
18(d) A provider of services defined in subdivision (a) is subject
19to all of the following, as applicable to his or her situation:
20(1) (A) A provider who works for one individual recipient of
21those services shall not work a total number of hours within a
22workweek that exceeds 66 hours, as reduced by
the net percentage
23defined by Sections 12301.02 and 12301.03, as applicable. In no
24circumstance shall the provision of these services by that provider
25to the individual recipient exceed the total weekly hours of the
26services authorized to that recipient, except as additionally
27authorized pursuant to subparagraph (C) of paragraph (4) of
28subdivision (b). If multiple providers serve the same recipient, it
29shall continue to be the responsibility of that recipient or his or
30her authorized representative to schedule the work of his or her
31providers to ensure the authorized services of the recipient are
32provided in accordance with this section.
33(B) When a recipient’s weekly authorized hours are adjusted
34pursuant to subparagraph (C) of paragraph (1) of subdivision (b)
35of Section 12301.1 and exceed 66 hours, as reduced by the net
36percentage defined by Sections 12301.02 and 12301.03, as
37applicable, and at the time of adjustment the recipient currently
38
receives all authorized hours of service from one provider, that
39provider shall be deemed authorized to work the recipient’s
40county-approved adjusted hours for that week, but only if the
P931 1additional hours of work, based on the adjustment, do not exceed
2the total number of hours worked that are compensable at an
3overtime pay rate that the provider would have been authorized to
4work in that month if the weekly hours had not been adjusted.
5(2) A provider of in-home supportive services described in
6subdivision (a) who serves multiple recipients is not authorized
7to, and shall not, work more than 66 total hours in a workweek,
8as reduced by the net percentage defined by Sections 12301.02
9and 12301.03, as applicable, regardless of the number of recipients
10for whom the provider provides services authorized by subdivision
11(a). Providers are subject to the limits of each recipient’s total
12authorized weekly hours of in-home supportive services described
13in
subdivision (a), except as additionally authorized pursuant to
14subparagraph (C) of paragraph (4) of subdivision (b).
15(e) Recipients and providers shall be informed of the limitations
16and requirements contained in this section, through notices at
17intervals and on forms as determined by the State Department of
18Social Services or the State Department of Health Care Services,
19as applicable, following consultation with stakeholders.
20(f) (1) A provider of services described in subdivision (a) shall
21not engage in travel time in excess of seven hours per week. For
22begin delete theend delete
purposes of this subdivision, “travel time” means time spent
23traveling directly from a location where authorized services
24specified in subdivision (a) are provided to onebegin delete recipient,end deletebegin insert recipientend insert
25 to another location where authorized services are to be provided
26to another recipient. A provider shall coordinate hours of work
27with his or her recipients to comply with this section.
28(2) The hourly wage to compensate a provider for travel time
29described in this subdivision when the travel is between two
30counties shall be the hourly wage of the destination county.
31(3) Travel time, and compensation for that travel time, between
32a recipient of authorized in-home supportive services specified
in
33subdivision (a) and a recipient of authorized waiver personal care
34services specified in subdivisionbegin delete (a),end deletebegin insert (a)end insert shall be attributed to the
35program authorizing services for the recipient to whom the provider
36is traveling.
37(4) Hours spent by a provider while engaged in travel time shall
38not be deducted from the authorized hours of service of any
39recipient of services specified in subdivision (a).
P932 1(5) The State Department of Social Services and the State
2Department of Health Care Services shall issue guidance and
3processes for travel time between recipients that will assist the
4provider and recipient to comply with this subdivision. Each county
5shall provide technical assistance to providers
and recipients, as
6necessary, to implement this subdivision.
7(g) A provider of authorized in-home supportive services
8specified in subdivision (a) shall timely submit, deliver, or mail,
9verified by postmark or request for delivery, a signed payroll
10timesheet within two weeks after the end of each bimonthly payroll
11period. Notwithstanding any other law, a provider who submits
12an untimely payroll timesheet for providing authorized in-home
13supportive services specified in subdivision (a) shall be paid by
14the state within 30 days of the receipt of the signed payroll
15timesheet.
16(h) This section does not apply to a contract entered into
17pursuant to Section 12302 or 12302.6 for authorized in-home
18supportive services. Contract rates negotiated pursuant to Section
1912302 or 12302.6 shall be based on costs consistent with a 40-hour
20workweek.
21(i) The state and counties are immune from any liability resulting
22from implementation of this section.
23(j) Any action authorized under this section that is implemented
24in a program authorized pursuant to Section 14132.95,begin delete 14132.97,
14132.956begin insert, or 14132.97end insert shall be compliant with
2514132.952, orend delete
26federal Medicaid requirements, as determined by the State
27Department of Health Care Services.
28(k) Notwithstanding the rulemaking provisions of the
29Administrative Procedure Act (Chapter 3.5 (commencing with
30Section 11340) of Part 1 of Division 3 of Title 2 of the Government
31Code), the State Department of Social Services and the State
32Department of Health Care Services may implement, interpret, or
33make specific this section by means of all-county letters or similar
34instructions, without taking any regulatory action.
35(l) (1) This section shall become operative only when the
36regulatory amendments made by RIN 1235-AA05 to Part 552 of
37Title 29 of the Code of Federal Regulations are deemed effective,
38
either on the date specified in RIN 1235-AA05 or at a later date
39specified by thebegin delete Federalend deletebegin insert
United Statesend insert Department of Labor,
40whichever is later.
P933 1(2) If the regulatory amendments described in paragraph (1)
2become only partially effective by the date specified in paragraph
3(1), this section shall become operative only for those persons for
4whom federal financial participation is available as of that date.
Section 12300.41 of the Welfare and Institutions
6Code is amended to read:
(a) For three months following the effective date
8specified in paragraph (1) of subdivision (l) of Section 12300.4,
9timesheets submitted by providers may be paid in excess of the
10limitations specified in Section 12300.4, so long as the number of
11hours worked by the provider within a month do not exceed the
12authorized hours of the recipient or recipients served by that
13provider.
14(b) The State Department of Social Services, in consultation
15with stakeholders, shall oversee a study of the implementation of
16Section 12300.4, Section 12301.1, and this section. This study
17shall cover the 24-month period subsequent to the three-month
18period specified in subdivision (a). Information collected for the
19study shall periodically be made available to stakeholders,
20includingbegin insert,end insert
but not limited tobegin insert,end insert representatives of recipients and
21providers, counties, and the legislative staff. Upon completion of
22the study, a report shall be submitted to the Legislature.
23(c) Using the study described in (b), it is the intent of the
24Legislature to evaluate implementation of the federal regulations
25described in paragraph (1) of subdivision (l) of Section 12300.4
26and make any adjustments determined appropriate or necessary
27through subsequent legislation.
Section 12301.1 of the Welfare and Institutions
29Code is amended to read:
(a) The department shall adopt regulations
31establishing a uniform range of services available to all eligible
32recipients based upon individual needs. The availability of services
33under these regulations is subject to the provisions of Section
3412301 and county plans developed pursuant to Section 12302.
35(b) (1) The county welfare department shall assess each
36recipient’s continuing monthly need for in-home supportive
37services at varying intervals as necessary, but at least once every
3812 months. The results of this assessment of monthly need for
39hours of in-home supportive services shall be divided by 4.33, to
40establish a recipient’s weekly authorized number of hours of
P934 1in-home supportive services, subject to any of the following, as
2
applicable:
3(A) Within the limit of the assessed monthly need for hours of
4in-home supportive services, a county welfare department may
5adjust the authorized weekly hours of a recipient for any particular
6week for known recurring or periodic needs of the recipient.
7(B) Within the limit of the assessed monthly need for hours of
8in-home supportive services, a county welfare department may
9temporarily adjust the authorized weekly hours of a recipient at
10the request of the recipient, to accommodate unexpected
11extraordinary circumstances.
12(C) In addition to the flexibility provided to a recipient pursuant
13to subparagraph (C) of paragraph (4) of subdivision (b) of Section
1412300.4, a recipient may request the county welfare department
15to adjust his or her weekly authorized hours of services to exceed
1640 hours of weekly
authorized hours of services per week, within
17his or her total monthly authorized hours of services. A request
18for adjustment may be madebegin delete retrospectiveend deletebegin insert
retroactiveend insert to the hours
19actually worked. The county welfare department shall not
20unreasonably withhold approval of a recipient request made
21pursuant to this subparagraph.
22(2) For purposes of subparagraph (C) of paragraph (1), and prior
23to its implementation, the State Department of Social Services
24shall develop a process for requestsbegin insert madeend insert pursuant to that
25subparagraph. The process shall include all of the following:
26(A) The procedure, standards, and timeline for making a request
27to adjust the authorized weekly hours of service for a recipient
28begin delete definedend deletebegin insert describedend insert
in this section.
29(B) The languagebegin insert to beend insert used for notices about the process.
30(C) Provisions for adjustments to authorization, and for
31authorization after services have been provided, when the criteria
32for approval have been met.
33(D) A requirement that the opportunity for a revision to the
34limitations of this section shall be discussed at each annual
35reassessment, and also may be authorized by the county welfare
36department outside of the reassessment process.
37(3) Recipients shall be timely informed of their total monthly
38and weekly authorized hours.
39(4) The weekly authorization of services defined in this section
40shall be used solely for the purposes of ensuring compliance with
P935 1the federal Fair Labor Standards Act and its implementing
2
regulations.
3(5) Notwithstanding the rulemaking provisions of the
4Administrative Procedure Act (Chapter 3.5 (commencing with
5Section 11340) of Part 1 of Division 3 of Title 2 of the Government
6Code), the department may implement, interpret, or make specific
7this subdivision by means of all-county letters, or similar
8instructions, without taking any regulatory action.
9(c) (1) Notwithstanding subdivision (b), at the county’s option,
10assessments may be extended, on a case-by-case basis, for up to
11six months beyond the regular 12-month period, provided that the
12county documents that all of the following conditions exist:
13(A) The recipient has had at least one reassessment since the
14initial program intake assessment.
15(B) The recipient’s
living arrangement has not changed since
16the last annual reassessment and the recipient lives with others, or
17has regular meaningful contact with persons other than his or her
18service provider.
19(C) The recipient or, if the recipient is a minor, his or her parent
20or legal guardian, or if incompetent, his or her conservator, is able
21to satisfactorily direct the recipient’s care.
22(D) There hasbegin insert notend insert beenbegin delete noend deletebegin insert aend insert known change in the recipient’s
23supportive service needs within the previous 24 months.
24(E) begin deleteNo reports have end deletebegin insertA
report has not end insertbeen made to, and there
25has been no involvement of, an adult protective services agency
26or agencies since the county last assessed the recipient.
27(F) The recipient has not had a change in provider or providers
28for at least six months.
29(G) The recipient has not reported a change in his or her need
30for supportive services that requires a reassessment.
31(H) The recipient has not been hospitalized within the last three
32months.
33(2) If some, but not all, of the conditions specified in paragraph
34(1)begin delete of subdivision (c)end delete are met, the county may consider other factors
35in determining whether an extended assessment interval is
36appropriate,
including, but not limited to, involvement in the
37recipient’s care of a social worker, case manager, or other similar
38representative from another human services agency, such as a
39regional center or county mental health program, or
40communications, or other instructions from a physician or other
P936 1licensed health care professional that the recipient’s medical
2condition is unlikely to change.
3(3) A county may reassess a recipient’s need for services at a
4time interval of less than 12 months from a recipient’s initial intake
5or last assessment if the county social worker has information
6indicating that the recipient’s need for services is expected to
7decrease in less than 12 months.
8(d) A county shall assess a recipient’s need for supportive
9services any time that the recipient notifies the county of a need
10to adjust the supportive services hours authorized, orbegin delete whenend deletebegin insert
ifend insert there
11are other indications or expectations of a change in circumstances
12affecting the recipient’s need for supportive services.
13(e) (1) Notwithstanding the rulemaking provisions of the
14Administrative Procedure Act, Chapter 3.5 (commencing with
15Section 11340) of Part 1 of Division 3 of Title 2 of the Government
16Code, until emergency regulations are filed with the Secretary of
17State, the department may implement this section through
18all-county letters or similar instructions from the director. The
19department shall adopt emergency regulations implementing this
20section no later than September 30, 2005, unless notification of a
21delay is made to the Chair of the Joint Legislative Budget
22Committee prior to that date. The notification shall include the
23reason for the delay, the current status of the emergency
24regulations, a date by which the emergency regulations shall be
25adopted, and a
statement of need to continue use of all-county
26letters or similar instructions.begin delete Under no circumstances shall theend delete
27begin insert Theend insert adoption of emergency regulationsbegin insert shall notend insert be delayed, or
28the use of all-county letters or similar instructions be extended,
29beyond June 30, 2006.
30(2) The adoption of regulations implementing this section shall
31be deemed an emergency and necessary for the immediate
32preservation of the public peace, health, safety, or general welfare.
33The emergency regulations authorized by this sectionbegin delete shall beend deletebegin insert
areend insert
34 exempt from review by the Office of Administrative Law. The
35emergency regulations authorized by this section shall be submitted
36to the Office of Administrative Law for filing with the Secretary
37of State and shall remain in effect for no more than 180 days by
38which time final regulations shall be adopted. The department shall
39seek input from the entities listed in Section 12305.72 when
P937 1developing all-county letters or similar instructions and the
2regulations.
Section 14005.75 of the Welfare and Institutions
4Code, as added by Section 1 of Chapter 1144 of the Statutes of
51985, is amended and renumbered to read:
A person who is otherwise eligible for Medi-Cal
8benefits under either Section 14005.4 or 14005.7, except for income
9and resource eligibility, and who is receiving Medi-Cal services
10for the treatment of multiple sclerosis, shall continue to be eligible
11to receive benefits only for these services under Medi-Cal, provided
12that all other conditions of eligibility for the Medi-Cal program
13are met. These restricted benefits shall continue until such time as
14the person is eligible for, and receives, third party coverage for
15these treatments. However, restricted benefits under this section
16shall not continue for more
than two years.
Section 14005.271 of the Welfare and Institutions
18Code is amended to read:
(a) The Healthy Families Advisory Board
20established by former Section 12693.90 of the Insurance Code is
21hereby renamed the Medi-Cal Children’s Health Advisory Panel.
22(b) The Medi-Cal Children’s Health Advisory Panel shall be
23an independent, statewide advisory board that shall advise the State
24Department of Health Care Services on matters relevant to all
25children enrolled in Medi-Cal and their families, including, but
26not limited to, emerging trends in the care of children, quality
27measurements, communications between the State Department of
28Health Care Services and Medi-Cal families, provider network
29issues, and Medi-Cal enrollment issues.
30(c) The membership of the advisory panel shall be composed
31
of the following 15 members:
32(1) One member who is a licensed, practicing dentist.
33(2) One physician and surgeon who is board certified in the area
34of family practice medicine.
35(3) One physician and surgeon who is board certified in
36pediatrics.
37(4) One representative from a licensed nonprofit primary care
38clinic.
39(5) One representative from the mental health provider
40community.
P938 1(6) One representative of the substance abuse provider
2community.
3(7) One representative of the county public health provider
4community.
5(8) One representative from a licensed hospital that is on the
6disproportionate share list maintained by the State Department of
7Health Care Services.
8(9) A current or former foster youth; an attorney, social worker,
9probation officer, or court appointed special advocate who currently
10represents one or more foster youth; a foster care service provider;
11or a child welfare advocate.
12(10) A parent of a Medi-Cal enrollee who has received treatment
13services under the California Children’s Services Program within
14the past six months.
15(11) A Medi-Cal enrollee who has received services under the
16Access for Infants and Mothers Program within the past six months.
17(12) A parent or legal guardian of a
Medi-Cal enrollee under
1821 years of age who has received mental health services under the
19Early and Periodic Screening, Diagnostic, and Treatment Program
20(EPSDT) within the past six months.
21(13) One representative from the health plan community.
22(14) One representative from the business community.
23(15) One representative from the education community.
24(d) The advisory panel shall elect, from among its members, its
25chair. In order to coordinate the activities of the advisory panel
26with other advisory bodies whose scope includes children enrolled
27in Medi-Cal, the chair shall keep apprised of relevant Medi-Cal
28stakeholder meetings by communicating with State Department
29of Health Care Services staff assisting the advisory panel.
30(e) The advisory panelbegin delete members, except as otherwise specified begin insert membersend insert shall be
31in paragraphs (4) and (5) of subdivision (c),end delete
32appointed by the State Department of Health Care Services, or in
33the case of vacancies of three months or greater, by the chair.
34(f) The advisory panel’s powers and duties include, but are not
35limited to, both of the following:
36(1) To advise the Director of Health Care Services on all
37policies, regulations, and operations of the Medi-Cal program
38related to providing health care services to children.
39(2) To meet at least quarterly, unless deemed
unnecessary by
40the chair.
P939 1(g) The State Department of Health Care Services’ powers and
2duties shall include, but not be limited to, all of the following:
3(1) To provide general support and staff assistance to the
4advisory panel.
5(2) To convene and attend meetings of the advisory panel at
6least quarterly, unless deemed unnecessary by the chair, at locations
7that are easily accessible to the public and advisory panel members,
8are of sufficient duration for presentation, discussion, and public
9comment on each agenda item, and are in accordance with the
10Bagley-Keene Open Meeting Act (Article 9 (commencing with
11Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of
12the Government Code).
13(3) To reimburse the members of the advisory panel for all
14
necessary travel expenses associated with the activities of the
15advisory panel, and to provide a stipend of one hundred dollars
16($100) per meeting attended to each panel member who is a
17Medi-Cal enrollee or a parent of a Medi-Cal enrollee.
18(4) To maintain an Internet Web page on the department’s
19Internet Web site dedicated to the advisory panel that shall include,
20but not be limited to, all of the following:
21(A) The purpose and scope of the advisory panel.
22(B) The current membership of the advisory panel.
23(C) A list of past and future meetings.
24(D) Agendas and other materials made available for past and
25future meetings.
26(E) Recommendations submitted to the department by the
27advisory panel.
28(F) The department’s responses to recommendations submitted
29by the advisory panel.
30(G) Contact information for department staff assisting the
31advisory panel.
32(5) To inform advisory panel members when new information
33is posted to the Internet Web page dedicated to the advisory panel.
34(6) Notwithstanding Section 10231.5 of the Government Code,
35to submit on or before January 1, 2018, a report to the Legislature
36on the advisory panel’s accomplishments, effectiveness, efficiency,
37and any recommendations for statutory changes needed to improve
38the ability of the advisory panel to fulfill its purpose. The report
39shall be submitted in compliance with Section 9795 of the
40
Government Code.
P940 1(h) The Legislature does not intend the addition of this section
2to result in a new panel, but rather a continuation of the prior panel
3established by former Section 12693.90 of the Insurance Code.
4New panel members shall not be appointed until a vacancy occurs.
Section 14011.2 of the Welfare and Institutions
6Code, as added by Section 34 of Chapter 171 of the Statutes of
72001, is amended and renumbered to read:
To the extent federal financial participation is
10available, the department shall take all steps necessary to comply
11with the terms and conditions of the State Child Health Insurance
12Program waiver described in Section 12693.755 of the Insurance
13Code extending eligibility under the Healthy Families Program to
14parents and certain other adults. The department shall seek any
15state plan amendments or other waivers under Title XIX of the
16Social Security Act (42 U.S.C. Sec. 1396 et seq.) necessary to
17implement this section.
Section 14011.10 of the Welfare and Institutions
19Code is amended to read:
(a) Except as provided in Sectionsbegin delete 14011.11, begin insert 14053.7end insert and 14053.8, benefits provided under this chapter
2114053.7,end delete
22to an individual who is an inmate of a public institution shall be
23suspended in accordance with Section 1396d(a)(29)(A) of Title
2442 of the United States Code as provided in subdivision (c).
25(b) County welfare departments shall notify the department
26within 10 days of receiving information that an individual on
27Medi-Cal in the county is or will be an inmate of a public
28institution.
29(c) If an individual
is a Medi-Cal beneficiary on the date he or
30she becomes an inmate of a public institution, his or her benefits
31under this chapter and under Chapter 8 (commencing with Section
3214200) shall be suspended effective the date he or she becomes
33an inmate of a public institution. The suspension shall end on the
34date he or she is no longer an inmate of a public institution or one
35year from the date he or she becomes an inmate of a public
36institution, whichever is sooner.
37(d) begin deleteNothing in this end deletebegin insertThis end insertsectionbegin delete shallend deletebegin insert does notend insert create a
38state-funded benefit or program. Health care
services under this
39chapter and Chapter 8 (commencing with Section 14200) shall not
P941 1be available to inmates of public institutions whose Medi-Cal
2benefits have been suspended under this section.
3(e) This section shall be implemented only if and to the extent
4allowed by federal law. This section shall be implemented only to
5the extent that any necessary federal approval of state plan
6amendments or other federal approvals are obtained.
7(f) If any part of this section is in conflict with or does not
8comply with federal law, this entire section shall be inoperative.
9(g) This section shall be implemented on January 1, 2010, or
10the date when all necessary federal approvals are obtained,
11whichever is later.
12(h) By January 1, 2010, or the date when all
necessary federal
13approvals are obtained, whichever is later, the department, in
14consultation with the Chief Probation Officers of California and
15the County Welfare Directors Association, shall establish the
16protocols and procedures necessary to implement this section,
17including any needed changes to the protocols and procedures
18previously established to implement Section 14029.5.
19(i) The department shall determine whether federal financial
20participation will be jeopardized by implementing this section and
21shall implement this section only if and to the extent that federal
22financial participation is not jeopardized.
23(j) Notwithstanding Chapter 3.5 (commencing with Section
2411340) of Part 1 of Division 3 of Title 2 of the Government Code,
25the department shall implement this section by means of all-county
26letters or similar instructions without taking regulatory action.
27Thereafter,
the department shall adopt regulations in accordance
28with the requirements of Chapter 3.5 (commencing with Section
2911340) of Part 1 of Division 3 of Title 2 of the Government Code.
Section 14021.6 of the Welfare and Institutions
31Code is amended to read:
(a) For the fiscal years prior to fiscal year 2004-05,
33and subject to the requirements of federal law, the maximum
34allowable rates for the Medi-Cal Drug Treatment Program shall
35be determined by computing the median rate from available cost
36data by modality from the fiscal year that is two years prior to the
37year for which the rate is being established.
38(b) (1) For the fiscal year 2007-08, and subsequent fiscal years,
39and subject to the requirements of federal law, the maximum
40allowable rates for the Medi-Cal Drug Treatment Program shall
P942 1be determined by computing the median rate from the most recently
2completed cost reports, by specific service codes that are consistent
3with the federal Health Insurance Portability and Accountability
4Act of
1996 (42 U.S.C. Sec. 300gg).
5(2) For the fiscal years 2005-06 and 2006-07, if the State
6Department of Health Care Servicesbegin delete and the State Department of begin insert determinesend insert that reasonably
7Alcohol and Drug Programs determineend delete
8reliable and complete cost report data are available, the
9methodology specified in this subdivision shall be applied to either
10or both of those years. If reasonably reliable and complete cost
11report data are not available, the State Department of Health Care
12Servicesbegin delete and the State Department of Alcohol and Drug Programsend delete
13 shall establish rates for either or both of those years based upon
14the usual, customary, and reasonable charge for the services to be
15provided, asbegin delete these two departmentsend deletebegin insert
the departmentend insert may determine
16inbegin delete theirend deletebegin insert itsend insert discretion. This subdivision is not intended to modify
17subdivision (h) of Section 14124.24, which requires certain
18providers to submit performance reports.
19(c) Notwithstanding subdivision (a), for the 1996-97 fiscal year,
20the rates for nonperinatal outpatient methadone maintenance
21services shall be set at the rate established for the 1995-96 fiscal
22year.
23(d) Notwithstanding subdivision (a), the maximum allowable
24rate for group outpatient drug free services shall be set on a per
25person basis. A group shall consist of a minimum of 2 and a
26maximum of 12 individuals, at least one of which shall be a
27Medi-Cal eligible
beneficiary. For groups consisting of two
28individuals, if one of the individuals is ineligible for Medi-Cal,
29the individual who is ineligible for Medi-Cal shall be receiving
30outpatient drug free services for a substance abuse disorder
31diagnosed by a physician.
32(e) The department shall develop individual and group rates for
33extensive counseling for outpatient drug free treatment, based on
34a 50-minute individual or a 90-minute group hour, not to exceed
35the total rate established for subdivision (d).
36(f) The department may adopt regulations as necessary to
37implement subdivisions (a), (b), and (c), or to implement cost
38containment procedures. These regulations may be adopted as
39emergency regulations in accordance with Chapter 3.5
40(commencing with Section 11340) of Part 1 of Division 3 of Title
P943 12 of the Government Code. The adoption of these emergency
2regulations shall be deemed an
emergency necessary for the
3immediate preservation of the public peace, health and safety, or
4general welfare.
Section 14022 of the Welfare and Institutions Code
6 is amended to read:
(a) This section shall be known as the “Medi-Cal
8Conflict of Interest Law.”
9It is the intent of the Legislature that provisions be made for
10disclosure of the interests of providers of service in the services,
11facilities and organizations to which they refer Medi-Cal recipients
12so that it is possible to determine the extent to which conflicts of
13interests may exist because of such referrals.
14(b) As used in this section, the term “referral” means (1) the
15referral of a recipient by a provider of service to any other provider
16of service; (2) the placement of a recipient by a provider of service
17in any facility; or (3) the obtaining, requesting, ordering or
18prescribing of services or
supplies by a provider of service on
19behalf of a recipient from any other provider of service.
20As used in this section, the term “immediate family” includes
21the spouse and children of the provider of service, the parents of
22the provider of service and his spouse, and the spouses of the
23children of the provider of service.
24(c) begin deleteNo end deletebegin insertA end insertpayment under this chapter shallbegin insert notend insert be made to a
25provider of service or to any facility or organization in which he
26or his immediate family has a significant beneficial interest, for
27services rendered in connection with any referral of a recipient,
28unless there is on file with the
director and the Advisory Health
29Council a statement of the nature and extent of such interest.
30 This
end delete
31begin insert(d)end insertbegin insert end insertbegin insertThisend insert section shall become operative only upon the date of
32which Section 1902(a)(4)(C) of the federal Social Security Act,
33as added by Public Law 95-559 is repealed, held invalid by a court
34of appeal, or otherwise made inoperative.
Section 14029.91 of the Welfare and Institutions
36Code is amended to read:
(a) The department shall require all managed care
38plans contracting with the department to provide Medi-Cal services
39to provide language assistance services to
P944 1limited-English-proficient (LEP) Medi-Cal beneficiaries who are
2mandatorily enrolled in managed care in the following manner:
3(1) Oral interpretation services shall be provided in any language
4on a 24-hour basis at key points of contact.
5(2) Translation services shall be provided to the language groups
6identified by the department.
7(b) The department shall determine when an LEP population
8meets the requirement for translation services using one of the
9following numeric
thresholds:
10(1) A population group of at least 3,000 or 5 percent of the
11beneficiary population, whichever is fewer, mandatorybegin insert
managed
12careend insert Medi-Cal beneficiaries, residing in the service area, who
13indicate their primary language as other than English.
14(2) A population group of mandatorybegin insert managed careend insert Medi-Cal
15beneficiaries, residing in the service area, who indicate their
16primary language as other than English, and that meet a
17concentration standard of 1,000 beneficiaries in a single ZIP Code
18or 1,500 beneficiaries in two contiguous ZIP Codes.
19(c) The department shall make this determination if any of the
20following occurs:
21(1) A nonmanaged care county becomes a new managed care
22county.
23(2) A new population group becomes a mandatory
Medi-Cal
24managed care beneficiary population.
25(3) A period of three years has passed since the last
26determination.
27(d) The department shall instruct managed care plans, by means
28of incorporating the requirement into plan contracts, all-plan letters,
29or similar instructions, of the language groups that meet the
30numeric thresholds.
31(e) For purposes of this section, a person is
32“limited-English-proficient” if he or she speaks English less than
33very well.
34(f) This sectionbegin delete shallend deletebegin insert doesend insert not apply to mental health plans
35contracting with the department pursuant to Section
14712.
The heading of Article 2.93 (commencing with
37Section 14091.3) of Chapter 7 of Part 3 of Division 9 of the 38Welfare and Institutions Code is repealed.
39
Section 14103 of the Welfare and Institutions Code,
2as added by Section 25 of Chapter 3 of the 1st Extraordinary
3Session of the Statutes of 2013, is repealed.
(a) The implementation of the optional expansion of
5Medi-Cal benefits to adults who meet the eligibility requirements
6of Section 1902(a)(10)(A)(i)(VIII) of Title XIX of the federal
7Social Security Act (42 U.S.C. Sec. 1396a(a)(10)(A)(i)(VIII)),
8shall be contingent upon the following:
9(1) If the federal medical assistance percentage payable to the
10state under the ACA for the optional expansion of Medi-Cal
11benefits to adults is reduced below 90 percent, that reduction shall
12be addressed in a timely manner through the annual state budget
13or legislative process. Upon receiving notification of any reduction
14in federal assistance pursuant to this paragraph, the Director of
15Finance shall immediately notify the
Chairpersons of the Senate
16and Assembly Health Committees and the Chairperson of the Joint
17Legislative Budget Committee.
18(2) If, prior to January 1, 2018, the federal medical assistance
19percentage payable to the state under the ACA for the optional
20expansion of Medi-Cal benefits to adults is reduced to 70 percent
21or less, the implementation of any provision in this chapter
22authorizing the optional expansion of Medi-Cal benefits to adults
23shall cease 12 months after the effective date of the federal law or
24other action reducing the federal medical assistance percentage.
25(b) For purposes of this section, “ACA” means the federal
26Patient Protection and Affordable Care Act (Public Law 111-148)
27as originally enacted and as amended by the federal Health Care
28and Education Reconciliation Act of 2010 (Public Law 111-152)
29and any subsequent
amendments.
Section 14105.18 of the Welfare and Institutions
31Code is amended to read:
(a) Notwithstanding any otherbegin delete provision ofend delete law,
33provider rates of payment for services rendered in all of the
34following programs shall be identical to the rates of payment for
35the same service performed by the same provider type pursuant to
36the Medi-Cal program:
37(1) The California Children’s Services Program established
38pursuant to Article 5 (commencing with Section 123800) of
39Chapter 3 of Part 2 of Division 106 of the Health and Safety Code.
P946 1(2) The Genetically Handicappedbegin delete Person’send deletebegin insert
Personsend insert Program
2established pursuant to Article 1 (commencing with Section
3125125) of Chapter 2 of Part 5 of Division 106 of the Health and
4Safety Code.
5(3) The Breast and Cervical Cancer Early Detection Program
6established pursuant to Article 1.3 (commencing with Section
7104150) of Chapter 2 of Part 1 of Division 103 of the Health and
8Safety Code and the breast cancer programs specified in Section
930461.6 of the Revenue and Taxation Code.
10(4) The State-Only Family Planning Program established
11pursuant to Division 24 (commencing with Section 24000).
12(5) The Family Planning, Access, Care, and Treatment (Family
13PACT) Program established pursuant to subdivision (aa) of Section
1414132.
15(6) The Healthy Families Program
established pursuant to Part
166.2 (commencing with Section 12693) of Division 2 of the
17Insurance Code if the health care services are provided by a
18Medi-Cal provider pursuant to subdivision (b) of Section 12693.26
19of the Insurance Code.
20(7) The Access for Infants and Mothers Program established
21pursuant to Part 6.3 (commencing with Section 12695) of Division
222 of the Insurance Code if the health care services are provided by
23a Medi-Cal provider.
24(b) The director may identify in regulations other programs not
25listed in subdivision (a) in which providers shall be paid rates of
26payment that are identical to the rates of payments in the Medi-Cal
27program pursuant to subdivision (a).
28(c) Notwithstanding subdivision (a), services provided under
29any of the programs described in subdivisions (a) and (b) may be
30reimbursed at
rates greater than the Medi-Cal rate that would
31otherwise be applicable if those rates are adopted by the director
32in regulations.
33(d) Payment increases made pursuant to Section 14105.196 shall
34not apply to provider rates of payment described in this section
35for services provided to individuals not eligible for Medi-Cal or
36Family PACT.
37(e) This section shall become operative on January 1, 2011.
Section 14105.336 of the Welfare and Institutions
39Code is repealed.
(a) The department shall reduce reimbursements
2to pharmacists by fifty cents ($0.50) per prescription, effective
3January 1, 1995, for all drug prescription claims reimbursed
4through the Medi-Cal program.
5(b) This section shall become inoperative on September 1, 2004.
Section 14105.337 of the Welfare and Institutions
7Code is repealed.
(a) Effective January 1, 2000, the department shall
9increase reimbursement to pharmacists by twenty-five cents ($0.25)
10per prescription for all drug prescription claims reimbursed through
11the Medi-Cal program.
12(b) Effective July 1, 2002, the department shall increase
13reimbursement to pharmacists by an additional fifteen cents ($0.15)
14per prescription for all drug prescription claims reimbursed through
15the Medi-Cal program.
16(c) (1) The department shall reduce reimbursement to
17pharmacists in the amount reimbursement was increased pursuant
18to subdivisions (a) and (b) with respect to pharmacy services
19rendered on and after the date that this subdivision is enacted.
20Claims submitted by pharmacists for beneficiaries residing in a
21nursing facility shall be exempt from this subdivision.
22(2) This subdivision shall become inoperative on July 1, 2004.
23(d) This section shall become inoperative on September 1, 2004.
Section 14124.24 of the Welfare and Institutions
25Code is amended to read:
(a) For purposes of this section, “Drug Medi-Cal
27reimbursable services” means the substance use disorder services
28described in the California State Medicaid Plan and includes, but
29is not limited to, all of the following services, administered by the
30department, and to the extent consistent with state and federal law:
31(1) Narcotic treatment program services, as set forth in Section
3214021.51.
33(2) Day care rehabilitative services.
34(3) Perinatal residential services for pregnant women and women
35in the postpartum period.
36(4) Naltrexone services.
37(5) Outpatient drug-free services.
38(6) Other services upon approval of a federal Medicaid state
39plan amendment or waiver authorizing federal financial
40participation.
P948 1(b) (1) While seeking federal approval for any federal Medicaid
2state plan amendment or waiver associated with Drug Medi-Cal
3services, the department shall consult with the counties and
4stakeholders in the development of the state plan amendment or
5waiver.
6(2) Upon federal approval of a federal Medicaid state plan
7amendment authorizing federal financial participation in the
8following services, and subject to appropriation of funds, “Drug
9Medi-Cal reimbursable services” shall also include the following
10services, administered by the department, and to the extent
11consistent
with state and federal law:
12(A) Notwithstanding subdivision (a) of Section 14132.90, day
13care habilitative services, which, for purposes of this paragraph,
14are outpatient counseling and rehabilitation services provided to
15persons with substance use disorder diagnoses.
16(B) Case management services, including supportive services
17to assist persons with substance use disorder diagnoses in gaining
18access to medical, social, educational, and other needed services.
19(C) Aftercare services.
20(c) (1) The nonfederal share for Drug Medi-Cal services shall
21be funded through a county’s Behavioral Health Subaccount of
22the Support Services Account of the Local Revenue Fund 2011,
23and any other available county funds eligible under federal law
24for
federal Medicaid reimbursement. The funds contained in each
25county’s Behavioral Health Subaccount of the Support Services
26Account of the Local Revenue Fund 2011 shall be considered state
27funds distributed by the principal state agency for the purposes of
28receipt of the federal block grant funds for prevention and treatment
29of substance abuse found at Subchapter XVII of Chapter 6A of
30Title 42 of the United States Code. Pursuant to applicable federal
31Medicaid law and regulations including Section 433.51 of Title
3242 of the Code of Federal Regulations, counties may claim
33allowable Medicaid federal financial participation for Drug
34Medi-Cal services based on the counties certifying their actual
35total funds expenditures for eligible Drug Medi-Cal services to
36the department.
37(2) (A) If the director determines that a county’s provision of
38Drug Medi-Cal treatment services are disallowed by the federal
39government or by state or
federal audit or review, the impacted
40county shall be responsible for repayment of all disallowed federal
P949 1funds. In addition to any other recovery methods available,
2including, but not limited to, offset of Medicaid federal financial
3participation funds owed to the impacted county, the director may
4offset these amounts in accordance with Section 12419.5 of the
5Government Code.
6(B) A county subject to an action by the director pursuant to
7subparagraph (A) may challenge that action by requesting a hearing
8in writing no later than 30 days from receipt of notice of the
9department’s action. The proceeding shall be conducted in
10accordance with Chapter 5 (commencing with Section 11500) of
11Part 1 of Division 3 of Title 2 of the Government Code, and the
12director has all the powers granted therein. Upon a county’s timely
13request for hearing, the county’s obligation to make payment as
14determined by the director shall be stayed pending the county’s
15
exhaustion of administrative remedies provided herein but no
16longer than will ensure the department’s compliance with Section
171903(d)(2)(C) of the federal Social Security Act (42 U.S.C. Sec.
181396b).
19(d) Drug Medi-Cal services are only reimbursable to Drug
20Medi-Cal providers with an approved Drug Medi-Cal contract.
21(e) Counties shall negotiate contracts only with providers
22certified to provide Drug Medi-Cal services.
23(f) The department shall develop methods to ensure timely
24payment of Drug Medi-Cal claims.
25(g) (1) A county or a contracted provider, except for a provider
26to whom subdivision (h) applies, shall submit accurate and
27complete cost reports for the previous fiscal year by November 1,
28following the end of the fiscal year.
The department may settle
29Drug Medi-Cal reimbursable services, based on the cost report as
30the final amendment to the approved county Drug Medi-Cal
31contract.
32(2) Amounts paid for services provided to Drug Medi-Cal
33beneficiaries shall be audited by the department in the manner and
34form described in Section 14170.
35(3) Administrative appeals to review grievances or complaints
36arising from the findings of an audit or examination made pursuant
37to this section shall be subject to Section 14171.
38(h) Certified narcotic treatment program providers that are
39exclusively billing the state or the county for services rendered to
40persons subject to Section 1210.1 or 3063.1 of the Penal Code or
P950 1Section 14021.52 of this code shall submit accurate and complete
2performance reports for the previous state fiscal year by November
31
following the end of that fiscal year. A provider to which this
4subdivision applies shall estimate its budgets using the uniform
5state daily reimbursement rate. The format and content of the
6performance reports shall be mutually agreed to by the department,
7the County Alcohol and Drug Program Administrators’ Association
8of California, and representatives of the treatment providers.
9(i) Contracts entered into pursuant to this section shall be exempt
10from the requirements of Chapter 1 (commencing with Section
1110100) and Chapter 2 (commencing with Section 10290) of Part
122 of Division 2 of the Public Contract Code.
13(j) Annually, the department shall publish procedures for
14contracting for Drug Medi-Cal services with certified providers
15and for claiming payments, including procedures and specifications
16for electronic data submission for services rendered.
17(k) If the department commences a preliminary criminal
18investigation of a certified provider, the department shall promptly
19notify each county that currently contracts with the provider for
20Drug Medi-Cal services that a preliminary criminal investigation
21has commenced. If the department concludes a preliminary criminal
22investigation of a certified provider, the department shall promptly
23notify each county that currently contracts with the provider for
24Drug Medi-Cal services that a preliminary criminal investigation
25has concluded.
26(1) Notice of the commencement and conclusion of a
27preliminary criminal investigation pursuant to this section shall
28be made to the county behavioral health director or his or her
29equivalent.
30(2) Communication between the department and a county
31specific to the commencement or conclusion of a
preliminary
32criminal investigation pursuant to this section shall be deemed
33confidential and shall not be subject to any disclosure request,
34including, but not limited to, the Information Practices Act ofbegin delete 1997end delete
35begin insert 1977end insert (Chapter 1 (commencing with Section 1798) of Title 1.8 of
36Part 4 of Division 3 of thebegin delete Code of Civil Procedure),end deletebegin insert Civil Code),end insert
37 the California Public Records Act (Chapter 3.5 (commencing with
38Section 6250) of Division 7 of Title 1 of the Government Code),
39requests pursuant to a subpoena, or for any other public purpose,
40including, but not limited to, court testimony.
P951 1(3) Information shared by the department with a county
2regarding a preliminary criminal investigation shall be maintained
3in a manner to ensure protection of the confidentiality of the
4criminal investigation.
5(4) The information provided to a county pursuant to this section
6shall only include the provider name, national provider identifier
7(NPI) number, address, and the notice that an investigation has
8commenced or concluded.
9(5) A county shall not take any adverse action against a provider
10based solely upon the preliminary criminal investigation
11information disclosed to the county pursuant to this section.
12(6) In the event of a preliminary criminal investigation of a
13county owned or operated program, the department has the option
14to, but is not required to,
notify the county pursuant to this section
15when the department commences or concludes a preliminary
16criminal investigation.
17(7) This sectionbegin delete shallend deletebegin insert doesend insert not limit the voluntary or otherwise
18legally mandated or contractually mandated sharing of information
19between the department and a county of information regarding
20audits and investigations of Drug Medi-Cal providers.
21(8) “Commenced” means the time at which a complaint or
22allegation is assigned to an investigator for a field investigation.
23(9) “Preliminary criminal investigation” means an investigation
24to gather information to determine if criminal law or statutes have
25been
violated.
Section 14132.90 of the Welfare and Institutions
27Code is repealed.
(a) As of September 15, 1995, day care habilitative
29services, pursuant to subdivision (c) of Section 14021 shall be
30provided only to alcohol and drug exposed pregnant women and
31women in the postpartum period, or as required by federal law.
32(b) (1) Notwithstanding any other provision of law, except to
33the extent required by federal law, if, as of May 15, 2000, the
34projected costs for the 1999-2000 fiscal year for outpatient drug
35abuse services, as described in Section 14021, exceed forty-five
36million dollars ($45,000,000) in state General Fund moneys, then
37the outpatient drug free services, as defined in Section 51341.1 of
38Title 22 of the California Code of
Regulations, shall not be a
39benefit under this chapter as of July 1, 2000.
P952 1(2) Notwithstanding paragraph (1), narcotic replacement therapy
2and Naltrexone shall remain benefits under this chapter.
3(3) Notwithstanding paragraph (1), residential care, outpatient
4drug free services, and day care habilitative services, for alcohol
5and drug exposed pregnant women and women in the postpartum
6period shall remain benefits under this chapter.
7(c) Expenditures for services purchased at the direction of county
8welfare departments on behalf of CalWORKs recipients shall not
9be included in the computation of costs for subdivision (b).
10(d) For the 1999-2000 fiscal year and each fiscal year thereafter,
11there shall be separate annual fiscal year General Fund
12
appropriations for drug Medi-Cal perinatal services (Item
134200-104-0001 of the Budget Act), drug Medi-Cal nonperinatal
14services (Item 4200-103-0001 of the Budget Act), nondrug
15Medi-Cal perinatal services (Item 4200-102-0001 of the Budget
16Act), and nondrug Medi-Cal nonperinatal services (Item
174200-101-0001 of the Budget Act).
18(e) Notwithstanding any other provision of law, the State
19Department of Alcohol and Drug Programs shall maintain a
20contingency reserve of the reappropriated General Fund moneys
21for the purpose of drug Medi-Cal program expenditures.
22(f) Unexpended General Fund moneys appropriated for the drug
23Medi-Cal program may be transferred for use as nondrug Medi-Cal
24county expenditures in the current or budget years. Unexpended
25General Fund moneys shall not be transferred from nondrug
26Medi-Cal to the drug Medi-Cal program for purposes of providing
27matching funds for
federal financial participation.
28(g) This section shall become inoperative on July 1, 2013.
Section 14132.99 of the Welfare and Institutions
30Code, as amended by Section 237 of Chapter 664 of the Statutes
31of 2002, is amended and renumbered to read:
For services provided pursuant to Chapter 7
34(commencing with Section 14000) of Part 3 of Division 9, Section
3514499.5, or Chapter 1 (commencing with Section 101525) to
36Chapter 4 (commencing with Section 101825), inclusive, of Part
374 of Division 101 of the Health and Safety Code, the cost for
38services defined in Section 1370.6 of the Health and Safety Code,
39and Sections 14087.11 and 14132.98 shall be provided bybegin delete state begin insert state-onlyend insert
funds if federal financial participation is not
P953 1onlyend delete
2 available.
Section 14132.277 of the Welfare and Institutions
4Code is amended to read:
(a) For purposes of this section, the following
6definitionsbegin delete shallend delete apply:
7(1) “Alternate health care service plan” means a prepaid health
8plan that is a nonprofit health care service plan with at least 3.5
9million enrollees statewide, that owns or operates its own
10pharmacies, and that provides medical services to enrollees in
11specific geographic regions through an exclusive contract with a
12single medical group in each specific geographic region in which
13it operates to provide services to enrollees.
14(2) “Cal MediConnect plan” means a health plan or other
15qualified entity jointly selected by the state and CMS for
16
participation in the demonstration project.
17(3) “CMS” means the federal Centers for Medicare and
18Medicaid Services.
19(4) “Coordinated Care Initiative county” means the Counties
20of Alameda, Los Angeles, Orange, Riverside, San Bernardino, San
21Diego, San Mateo, and Santa Clara, and any other county identified
22in Appendix 3 of the Memorandum of Understanding Between
23the Centers for Medicare and Medicaid Services and the State of
24California, Regarding a Federal-State Partnership to Test a
25Capitated Financial Alignment Model for Medicare-Medicaid
26Enrollees, inclusive of all amendments, as authorized by Section
2714132.275.
28(5) “D-SNP plan” means a Medicare Advantage Dual Special
29Needs Plan.
30(6) “D-SNP contract” means a federal Medicare Improvements
31for Patients
and Provider Act of 2008 (Public Law 110-275)
32compliant contract between the department and a D-SNP plan.
33(7) “Demonstration project” means the demonstration project
34authorized by Section 14132.275.
35(8) “Excluded beneficiaries” means those beneficiaries who are
36not eligible to participate in the demonstration project pursuant to
37subdivision (l) of Section 14132.275.
38(9) “FIDE-SNP plan” means a Medicare Advantage
39Fully-Integrated Dual Eligible Special Needs Plan.
P954 1(10) “Non-Coordinated Care Initiative counties” means counties
2not participating in the demonstration project.
3(b) For the 2014 calendar year, the department shall offer D-SNP
4contracts to existing D-SNP plans to continue to
provide benefits
5to their enrollees in their service areas as approved on January 1,
62013. The director may include in any D-SNP contract provisions
7requiring that the D-SNP plan do the following:
8(1) Submit to the department a complete and accurate copy of
9the bid submitted by the plan to CMS for its D-SNP contract.
10(2) Submit to the department copies of all utilization and quality
11management reports submitted to CMS.
12(c) In Coordinated Care Initiative counties, Medicare Advantage
13plans and D-SNP plans may continue to enroll beneficiaries in
142014. In the 2014 calendar year, beneficiaries enrolled in a
15Medicare Advantage or D-SNP plan operating in a Coordinated
16Care Initiative county shall be exempt from the enrollment
17provisions of subparagraph (A) of paragraph (1) of subdivision (l)
18of Section 14132.275. Those
beneficiaries may at any time
19voluntarily choose to disenroll from their Medicare Advantage or
20D-SNP plan and enroll in a demonstration site operating pursuant
21to subdivision (g) of Section 14132.275. If a beneficiary chooses
22to do so, that beneficiary may subsequently disenroll from the
23demonstration site and return to fee-for-service Medicare or to a
24D-SNP plan or Medicare Advantage plan.
25(d) For the 2015 calendar year and the remainder of the
26demonstration project, in Coordinated Care Initiative counties, the
27department shall offer D-SNP contracts to D-SNP plans that were
28approved for the D-SNP plan’s service areas as of January 1, 2013.
29In Coordinated Care Initiative counties, the department shall enter
30into D-SNP contracts with D-SNP plans only for excluded
31beneficiaries and for those beneficiaries identified in paragraphs
32(2) and (5) of subdivision (g).
33(e) For the 2015
calendar year and the remainder of the
34demonstration project, in non-Coordinated Care Initiative counties,
35the department shall offer D-SNP contracts to D-SNP plans.
36(f) The director may include in a D-SNP contract offered
37pursuant to subdivision (d) or (e) provisions requiring that the
38D-SNP plan do the following:
39(1) Submit to the department a complete and accurate copy of
40the bid submitted by the plan to CMS for its D-SNP contract.
P955 1(2) Submit to the department copies of all utilization and quality
2management reports submitted to CMS.
3(g) For the 2015 calendar year and the remainder of the
4demonstration project, in Coordinated Care Initiative counties, the
5enrollment provisions of subdivision (l) of Section 14132.275 shall
6apply subject to the
following:
7(1) Beneficiaries enrolled in a FIDE-SNP plan or a Medicare
8Advantage plan, other than a D-SNP plan, shall be exempt from
9the enrollment provisions of subparagraph (A) of paragraph (1) of
10subdivision (l) of Section 14132.275.
11(2) begin deleteWhere end deletebegin insertIf end insertthe D-SNP plan is not a Cal MediConnect plan,
12beneficiaries enrolled as of December 31, 2014, in a D-SNP plan
13shall be exempt from the enrollment provisions of subparagraph
14(A) of paragraph (1) of subdivision (l) of Section 14132.275. Those
15beneficiaries may at any time voluntarily choose to disenroll from
16their D-SNP plan and enroll in a demonstration site operating
17pursuant to subdivision (g) of Section 14132.275. A dual eligible
18beneficiary who
is enrolled as of December 31, 2014, in a D-SNP
19plan that is not a Cal MediConnect plan and who opts out of a
20demonstration site during the course of the demonstration project
21may choose to reenroll in that D-SNP plan.
22(3) begin deleteWhere end deletebegin insertIf end insertthe D-SNP is a Cal MediConnect plan, beneficiaries
23enrolled in a D-SNP plan who are eligible for the demonstration
24project shall be subject to the enrollment provisions of
25subparagraph (A) of paragraph (1) of subdivision (l) of Section
2614132.275.
27(4) For FIDE-SNP plans serving beneficiaries in Coordinated
28Care Initiative counties, the department shall require the following
29provisions:
30(A) After
December 31, 2014, enrollment inbegin insert the County ofend insert Los
31Angelesbegin delete Countyend delete shall not exceed 6,000 additional beneficiaries at
32any point during the term of the demonstration project. After
33December 31, 2014, enrollment in the combinedbegin insert Counties ofend insert
34 Riverside and San Bernardinobegin delete countiesend delete shall not exceed 1,500
35additional beneficiaries at any point during the term of the
36demonstration project.
37(B) Any necessary data or information requirements provided
38by the FIDE-SNP to ensure contract compliance.
39(5) Beneficiaries
enrolled in an alternate health care service
40plan (AHCSP) who become dually eligible for Medicare and
P956 1Medicaid benefits while enrolled in that AHCSP may elect to enroll
2in the AHCSP’s D-SNP plan subject to the following requirements:
3(A) The beneficiary was a member of the AHCSP immediately
4prior to becoming dually eligible for Medicare and Medicaid
5benefits.
6(B) Upon mutual agreement between a Cal MediConnect Plan
7operated by a health authority or commission contracting with the
8department and the AHCSP, the AHCSP shall take full financial
9and programmatic responsibility for the long-term supports and
10services of the D-SNP enrollee, including, but not limited to,
11in-home supportive services, long term skilled nursing care,
12community based adult services, multipurpose senior services
13program services, and other Medi-Cal benefits offered in the
14demonstration project.
15(6) Prior to assigning a beneficiary in a Medi-Cal managed care
16health plan pursuant to Section 14182.16, the department shall
17determine whether the beneficiary is already a member of the
18AHCSP. If so, the beneficiary shall be assigned to a Medi-Cal
19managed care health plan operated by a health authority or
20commission contracting with the department and subcontracting
21with the AHCSP.
Section 14148.67 of the Welfare and Institutions
23Code is amended to read:
(a) When implementing the premium and
25cost-sharing payments required under Sections 14102 and
2614148.65, the department shall make the premium and cost-sharing
27payments required under those sections to the beneficiary’s
28qualified health plan in conformity with the requirements of this
29section.
30(b) (1) The beneficiary shall not be charged, billed, asked, or
31required to make any premium or cost-sharing payments to his or
32her qualified health plan or service provider for any services that
33are subject to premium or cost-sharing payments by the department
34under Section 14102 or 14148.65.
35(2) If the beneficiary makes any premium or cost-sharing
36payments to his or her plan or provider
for services that are subject
37to premium or cost-sharing payments by the department under
38Section 14102 or 14148.65, the department shall reimburse the
39beneficiary for those payments. The department shall make every
40reasonable effort to do both of the following:
P957 1(A) Make the reimbursement process simple and easy for
2beneficiaries to use.
3(B) Promptly reimburse beneficiaries under this paragraph.
4(3) If, as a result of reconciliation in a tax yearbegin delete whereend deletebegin insert in whichend insert
5 the beneficiary was eligible for covered premium payments under
6Section 14102 or 14148.65, the beneficiary owes and makes a tax
7payment to the federal government to
return a portion of the
8advanced premium tax credit to which the beneficiary was not
9entitled and the beneficiary notifies the department, the department
10shall reimburse the beneficiary for the amount of the tax payment
11related to the tax credits for covered premium payments under
12Section 14102 or 14148.65.
13(4) If, as a result of reconciliation in a tax yearbegin delete whereend deletebegin insert in whichend insert
14 the beneficiary was eligible for covered premium payments under
15Section 14102 or 14148.65, the federal government owes and
16makes a tax refund to the beneficiary based upon the beneficiary’s
17advanced premium tax credit, the beneficiary shall reimburse the
18department for the portion of the refund that is related to the tax
19credits that were applied to the premium payments made by the
20
department.
21(c) (1) Except as provided in paragraph (2), beneficiaries who
22are eligible for benefits under Section 14102 or 14148.65 shall be
23eligible for the premium and cost-sharing payments required under
24those sections only up to the amount necessary to pay for the
25second lowest silver level plan in his or her qualified health plan
26pricing region, as modified by cost-sharing reductions.
27(2) If a beneficiary selects or remains in a metal level plan that
28is more expensive than the metal level plan amount limit required
29under paragraph (1), the beneficiary may select or remain in that
30plan only if he or she agrees to be responsible for paying all
31applicable premium and cost-sharing charges that are in excess of
32what is covered by the department. The departmentbegin delete shallend deletebegin insert
isend insert notbegin delete beend delete
33 responsible for paying for any premium or cost sharing that is in
34excess of the metal level plan amount limit required under
35paragraph (1).
36(d) The department shall consult with the Exchange, Exchange
37contracting health care service plans and health insurers, and
38stakeholders, including consumer advocates, Medi-Cal providers,
39and the counties, in the development and implementation of the
40following:
P958 1(1) Processes and procedures to inform affected applicants and
2beneficiaries in a clear, consumer-friendly manner of all of their
3enrollment options under the Medi-Cal program and the Exchange,
4of the manner in which they may receive the benefits and services
5covered through the Exchange coverage, and of the manner in
6which they may receive benefits and
services under Section 14102.
7(2) Provider notices to ensure that Medi-Cal providers are aware
8of the Medi-Cal program under Section 14102 and that providers
9comply with state laws applicable to Medi-Cal coverage for
10individuals eligible under Section 14102.
11(e) All notices developed under subdivision (d) shall be
12accessible to persons with limited English language proficiency
13and persons with disabilities consistent with all federal and state
14requirements.
15(f) Notwithstanding Chapter 3.5 (commencing with Section
1611340) of Part 1 of Division 3 of Title 2 of the Government Code,
17the department, without taking any further regulatory action, shall
18implement, interpret, or make specific this section by means of
19all-county letters, plan letters, plan or provider bulletins, or similar
20instructions until the time
regulations are adopted. The department
21shall adopt regulations by July 1, 2017, in accordance with the
22requirements of Chapter 3.5 (commencing with Section 11340) of
23Part 1 of Division 3 of Title 2 of the Government Code.
24Notwithstanding Section 10231.5 of the Government Code,
25beginning six months after the effective date of this section, the
26department shall provide a status report to the Legislature on a
27semiannual basis, in compliance with Section 9795 of the
28Government Code, until regulations have been adopted.
29(g) This section shall be implemented only if and to the extent
30that federal financial participation is available and any necessary
31federal approvals have been obtained.
Section 14148.9 of the Welfare and Institutions
33Code, as added by Section 4 of Chapter 1171 of the Statutes of
341991, is amended and renumbered to read:
The department shall provide for the receipt and
37initial processing of Medi-Cal applications from (a) pregnant
38women; and (b) children born after September 30, 1983, who have
39not yet attained 19 years of age, at facilities other than the county
P959 1welfare department as described in Title XIX of the Social Security
2Act (42 U.S.C., Sec. 1396 and following).
Section 14154 of the Welfare and Institutions Code
4 is amended to read:
(a) (1) The department shall establish and maintain a
6plan whereby costs for county administration of the determination
7of eligibility for benefits under this chapter will be effectively
8controlled within the amounts annually appropriated for that
9administration. The plan, to be known as the County Administrative
10Cost Control Plan, shall establish standards and performance
11criteria, including workload, productivity, and support services
12standards, to which counties shall adhere. The plan shall include
13standards for controlling eligibility determination costs that are
14incurred by performing eligibility determinations at county
15hospitals, or that are incurred due to the outstationing of any other
16eligibility function. Except as provided in Section 14154.15,
17reimbursement to a county for outstationed
eligibility functions
18shall be based solely on productivity standards applied to that
19county’s welfare department office.
20(2) (A) The plan shall delineate both of the following:
21(i) The process for determining county administration base costs,
22which include salaries and benefits, support costs, and staff
23development.
24(ii) The process for determining funding for caseload changes,
25cost-of-living adjustments, and program and other changes.
26(B) The annual county budget survey document utilized under
27the plan shall be constructed to enable the counties to provide
28sufficient detail to the department to support their budget requests.
29(3) The plan shall be part of a single
state plan, jointly developed
30by the department and the State Department of Social Services, in
31conjunction with the counties, for administrative cost control for
32the California Work Opportunity and Responsibility to Kids
33(CalWORKs), CalFresh, and Medical Assistance (Medi-Cal)
34programs. Allocations shall be made to each county and shall be
35limited by and determined based upon the County Administrative
36Cost Control Plan. In administering the plan to control county
37administrative costs, the department shall not allocate state funds
38to cover county cost overruns that result from county failure to
39meet requirements of the plan. The department and the State
40Department of Social Services shall budget, administer, and
P960 1allocate state funds for county administration in a uniform and
2consistent manner.
3(4) The department and county welfare departments shall
4develop procedures to ensure the data clarity, consistency, and
5reliability of information
contained in the county budget survey
6document submitted by counties to the department. These
7procedures shall include the format of the county budget survey
8document and process, data submittal and its documentation, and
9the use of the county budget survey documents for the development
10of determining county administration costs. Communication
11between the department and the county welfare departments shall
12be ongoing as needed regarding the content of the county budget
13surveys and any potential issues to ensure the information is
14complete and well understood by involved parties.begin delete Any changesend delete
15begin insert Changesend insert developed pursuant to this section shall be incorporated
16within the state’s annual budget process by no later than the
172011-12 fiscal year.
18(5) The department
shall provide a clear narrative description
19along with fiscal detail in the Medi-Cal estimate package, submitted
20to the Legislature in January and May of each year, of each
21component of the county administrative funding for the Medi-Cal
22program. This shall describe how the information obtained from
23the county budget survey documents was utilized and, if applicable,
24modified and the rationale for the changes.
25(6) Notwithstanding any other law, the department shall develop
26and implement, in consultation with county program and fiscal
27representatives, a new budgeting methodology for Medi-Cal county
28administrative costs that reflects the impact of PPACA
29implementation on county administrative work. The new budgeting
30methodology shall be used to reimburse counties for eligibility
31processing and case maintenance for applicants and beneficiaries.
32(A) The budgeting methodology may
include, but is not limited
33to, identification of the costs of eligibility determinations for
34applicants, and the costs of eligibility redeterminations and case
35maintenance activities for recipients, for different groupings of
36cases, based on variations in time and resources needed to conduct
37eligibility determinations. The calculation of time and resources
38shall be based on the following factors: complexity of eligibility
39rules, ongoing eligibility requirements, and other factors as
40determined appropriate by the department. The development of
P961 1the new budgeting methodology may include, but is not limited
2to, county survey of costs, time and motion studies, in-person
3observations by department staff, data reporting, and other factors
4deemed appropriate by the department.
5(B) The new budgeting methodology shall be clearly described,
6state the necessary data elements to be collected from the counties,
7and establish the timeframes for counties to
provide the data to
8the state.
9(C) The new budgeting methodology developed pursuant to this
10paragraph shall be implemented no sooner than the 2015-16 fiscal
11year. The department may develop a process for counties to phase
12in the requirements of the new budgeting methodology.
13(D) The department shall provide the new budgeting
14methodology to the legislative fiscal committees by March 1 of
15the fiscal year immediately preceding the first fiscal year of
16implementation of the new budgeting methodology.
17(E) To the extent that the funding for the county budgets
18developed pursuant to the new budget methodology is not fully
19appropriated in any given fiscal year, the department, with input
20from the counties, shall identify and consider options to align
21funding and workload responsibilities.
22(F) For purposes of this paragraph, “PPACA” means the federal
23Patient Protection and Affordable Care Act (Public Law 111-148),
24as amended by the federal Health Care and Education
25Reconciliation Act of 2010 (Public Law 111-152) and any
26subsequent amendments.
27(G) Notwithstanding Chapter 3.5 (commencing with Section
2811340) of Part 1 of Division 3 of Title 2 of the Government Code,
29the department may implement, interpret, or make specific this
30paragraph by means of all-county letters, plan letters, plan or
31provider bulletins, or similar instructions until the time any
32necessary regulations are adopted. The department shall adopt
33regulations by July 1, 2017, in accordance with the requirements
34of Chapter 3.5 (commencing with Section 11340) of Part 1 of
35Division 3 of Title 2 of the Government Code. Beginning six
36months after the implementation of the new budgeting methodology
37pursuant to
this paragraph, and notwithstanding Section 10231.5
38of the Government Code, the department shall provide a status
39report to the Legislature on a semiannual basis, in compliance with
P962 1Section 9795 of the Government Code, until regulations have been
2adopted.
3(b) begin deleteNothing in this end deletebegin insertThis end insertsection, Section 15204.5, or Section
418906 shallbegin insert notend insert be construed to limit the administrative or
5budgetary responsibilities of the department in a manner that would
6violate Section 14100.1, and thereby jeopardize federal financial
7participation under the Medi-Cal program.
8(c) (1) The
Legislature finds and declares that in order for
9counties to do the work that is expected of them, it is necessary
10that they receive adequate funding, including adjustments for
11reasonable annual cost-of-doing-business increases. The Legislature
12further finds and declares that linking appropriate funding for
13county Medi-Cal administrative operations, including annual
14cost-of-doing-business adjustments, with performance standards
15will give counties the incentive to meet the performance standards
16and enable them to continue to do the work they do on behalf of
17the state. It is therefore the Legislature’s intent to provide
18appropriate funding to the counties for the effective administration
19of the Medi-Cal program at the local level to ensure that counties
20can reasonably meet the purposes of the performance measures as
21contained in this section.
22(2) It is the intent of the Legislature to not appropriate funds for
23the cost-of-doing-business
adjustment for the 2008-09, 2009-10,
242010-11, 2011-12, 2012-13, and 2014-15 fiscal years.
25(d) The department is responsible for the Medi-Cal program in
26accordance with state and federal law. A county shall determine
27Medi-Cal eligibility in accordance with state and federal law. If
28in the course of its duties the department becomes aware of
29accuracy problems in any county, the department shall, within
30available resources, provide training and technical assistance as
31appropriate.begin delete Nothing in thisend deletebegin insert Thisend insert section shallbegin insert notend insert be interpreted
32to eliminate any remedy otherwise available to the department to
33enforce accurate county administration of the program.
In
34administering the Medi-Cal eligibility process, each county shall
35meet the following performance standards each fiscal year:
36(1) Complete eligibility determinations as follows:
37(A) Ninety percent of the general applications without applicant
38errors and are complete shall be completed within 45 days.
P963 1(B) Ninety percent of the applications for Medi-Cal based on
2disability shall be completed within 90 days, excluding delays by
3the state.
4(2) (A) The department shall establish best-practice guidelines
5for expedited enrollment of newborns into the Medi-Cal program,
6preferably with the goal of enrolling newborns within 10 days after
7the county is informed of the birth. The department, in consultation
8with counties and other
stakeholders, shall work to develop a
9process for expediting enrollment for all newborns, including those
10born to mothers receiving CalWORKs assistance.
11(B) Upon the development and implementation of the
12best-practice guidelines and expedited processes, the department
13and the counties may develop an expedited enrollment timeframe
14for newborns that is separate from the standards for all other
15applications, to the extent that the timeframe is consistent with
16these guidelines and processes.
17(3) Perform timely annual redeterminations, as follows:
18(A) Ninety percent of the annual redetermination forms shall
19be mailed to the recipient by the anniversary date.
20(B) Ninety percent of the annual redeterminations shall be
21completed within 60 days of the
recipient’s annual redetermination
22date for those redeterminations based on forms that are complete
23and have been returned to the county by the recipient in a timely
24manner.
25(C) Ninety percent of those annual redeterminationsbegin delete whereend deletebegin insert for
26whichend insert the redetermination form has not been returned to the county
27by the recipient shall be completed by sending a notice of action
28to the recipient within 45 days after the date the form was due to
29the county.
30(D) If a child is determined by the county to change from no
31share of cost to a share of cost and the child meets the eligibility
32criteria for the Healthy Families Program established under Section
3312693.98 of the Insurance Code, the child shall be
placed in the
34Medi-Cal-to-Healthy Families Bridge Benefits Program, and these
35cases shall be processed as follows:
36(i) Ninety percent of the families of these children shall be sent
37a notice informing them of the Healthy Families Program within
38five working days from the determination of a share of cost.
39(ii) Ninety percent of all annual redetermination forms for these
40children shall be sent to the Healthy Families Program within five
P964 1working days from the determination of a share of cost if the parent
2has given consent to send this information to the Healthy Families
3Program.
4(iii) Ninety percent of the families of these children placed in
5the Medi-Cal-to-Healthy Families Bridge Benefits Program who
6have not consented to sending the child’s annual redetermination
7form to the Healthy Families Program shall be sent a
request,
8within five working days of the determination of a share of cost,
9to consent to send the information to the Healthy Families Program.
10(E) Subparagraph (D) shall not be implemented until 60 days
11after the Medi-Cal and Joint Medi-Cal and Healthy Families
12applications and the Medi-Cal redetermination forms are revised
13to allow the parent of a child to consent to forward the child’s
14information to the Healthy Families Program.
15(e) The department shall develop procedures in collaboration
16with the counties and stakeholder groups for determining county
17review cycles, sampling methodology and procedures, and data
18reporting.
19(f) On January 1 of each year, each applicable county, as
20determined by the department, shall report to the department on
21the county’s results in meeting the performance standards specified
22in
this section. The reportbegin delete shall beend deletebegin insert isend insert subject to verification by the
23department. County reports shall be provided to the public upon
24written request.
25(g) If the department finds that a county is not in compliance
26with one or more of the standards set forth in this section, the
27county shall, within 60 days, submit a corrective action plan to the
28department for approval. The corrective action plan shall, at a
29minimum, include steps that the county shall take to improve its
30performance on the standard or standards with which the county
31is out of compliance. The plan shall establish interim benchmarks
32for improvement that shall be expected to be met by the county in
33order to avoid a sanction.
34(h) (1) If a county does not meet the performance standards for
35completing eligibility determinations and redeterminations as
36specified in this section, the department may, at its sole discretion,
37reduce the allocation of funds to that county in the following year
38by 2 percent.begin delete Any fundsend deletebegin insert Fundsend insert so reduced may be restored by the
39department if, in the determination of the department, sufficient
40improvement has been made by the county in meeting the
P965 1performance standards during the year for which the funds were
2reduced. If the county continues not to meet the performance
3standards, the department may reduce the allocation by an
4additional 2 percent for each year thereafter in which sufficient
5improvement has not been made to meet the performance standards.
6(2) begin deleteNo end deletebegin insertA end insertreduction of the allocation of funds to a county shall
7begin insert notend insert be imposed pursuant to this subdivision for failure to meet
8performance standards during any period of time in which the
9cost-of-doing-business increase is suspended.
10(i) The department shall develop procedures, in collaboration
11with the counties and stakeholders, for developing instructions for
12the performance standards established under subparagraph (D) of
13paragraph (3) of subdivision (d), no later than September 1, 2005.
14(j) No later than September 1,
2005, the department shall issue
15a revised annual redetermination form to allow a parent to indicate
16parental consent to forward the annual redetermination form to
17the Healthy Families Program if the child is determined to have a
18share of cost.
19(k) The department, in coordination with the Managed Risk
20Medical Insurance Board, shall streamline the method of providing
21the Healthy Families Program with information necessary to
22determine Healthy Families eligibility for a child who is receiving
23services under the Medi-Cal-to-Healthy Families Bridge Benefits
24Program.
25(l) Notwithstanding Chapter 3.5 (commencing with Section
2611340) of Part 1 of Division 3 of Title 2 of the Government Code,
27and except as provided in subparagraph (G) of paragraph (6) of
28subdivision (a), the department shall, without taking any further
29regulatory action, implement, interpret, or make specific this
30
section and any applicable federal waivers and state plan
31amendments by means of all-county letters or similar instructions.
Section 14165.50 of the Welfare and Institutions
33Code is amended to read:
(a) To facilitate the financial viability of a new
35private nonprofit hospital that will serve the population of South
36Los Angeles that was formerly served by the Los Angeles County
37Martin Luther King, Jr.-Harbor Hospital, Medi-Cal funding shall,
38at a minimum, be made available, as specified in this section, or
39pursuant to mechanisms that provide equivalent funding under
40successor or modified Medi-Cal payment systems.
P966 1(b) Medi-Cal payment for hospital services provided by the
2new hospital, exclusive of any payments under the Medi-Cal
3Hospital Reimbursement Improvement Act of 2013 (Article 5.230
4(commencing with Section 14169.50)) or funded by another
5statewide hospital fee program, and exclusive of the supplemental
6payments specified in subdivision (d), shall
include consideration
7of the new hospital’s projected Medi-Cal costs for providing the
8services as set forth in this section.
9(1) (A) Subject to paragraph (2) of subdivision (c), and
10notwithstanding any other law, Medi-Cal payments made to the
11new hospital on a fee-for-service basis, including payments made
12pursuant to the methodology authorized under Section 14105.28
13or successor or modified methodologies, shall provide
14compensation that is, at a minimum, equal to 100 percent of the
15new hospital’s projected Medi-Cal costs for each fiscal year.
16(B) To the extent supplemental payments are necessary for any
17fiscal year to meet the applicable minimum reimbursement level
18as described in subparagraph (A), the department shall seek federal
19approval, as necessary, to enable the new hospital to receive the
20Medi-Cal supplemental payments.
21(2) (A) To the extent permitted under federal law, the
22department shall require Medi-Cal managed care plans serving
23Medi-Cal beneficiaries in the County of Los Angeles to pay the
24new hospital amounts determined necessary to meet compensation
25levels for services provided to managed care enrollees that are no
26less than the amount to which the new hospital would have received
27on a fee-for-service basis pursuant to paragraph (1). The amounts
28shall be determined in consultation with the new hospital, the
29County of Los Angeles, and the Medi-Cal managed care plan, and
30shall be subject to paragraph (2) of subdivision (c).
31(B) Consistent with federal law, the capitation rates paid to
32Medi-Cal managed care plans serving Medi-Cal beneficiaries in
33the County of Los Angeles shall be determined to reflect the
34obligations described in subparagraph (A). The increased payments
35
to Medi-Cal managed care plans that would be paid consistent
36with actuarial certification and enrollment in the absence of this
37paragraph shall not be reduced as a consequence of this paragraph.
38(C) A Medi-Cal managed care plan receiving the increased
39payments described in subparagraph (B) shall not impose a fee or
40retention amount, or reduce other payments to the new hospital
P967 1that would result in a direct or indirect reduction to the amounts
2required to be paid under subparagraph (A).
3(3) This subdivision shall not be construed to result in payments
4that are less than the rates of compensation that would be payable
5to the new hospital for Medi-Cal services without regard to the
6requirements of paragraphs (1) and (2).
7(c) If the applicable minimum reimbursement levels required
8in subdivision (b) result in payments to
the new hospital that are
9above the levels of compensation that would have been payable
10absent that requirement, and to the extent a nonfederal share is
11necessary with respect to the additional compensation, the
12following provisions shall apply:
13(1) (A) For each fiscal year through the 2016-17 fiscal year,
14General Fund amounts appropriated in the annual Budget Act for
15the Medi-Cal program shall fund the nonfederal share of the
16additional payments to the extent that the rates of compensation
17for inpatient hospital services provided by the new hospital that
18would have been payable in the absence of the requirements of
19subdivision (b) are less than 77 percent of the new hospital’s
20projected Medi-Cal costs. With respect to the nonfederal share of
21the additional payments described in paragraph (2) of subdivision
22(b), however, this subparagraph shall be applicable only for
23inpatient services provided in conjunction with the
implementation
24of Section 14182, and other mandatory managed care enrollment
25provisions implemented subsequent to January 1, 2011.
26(B) For the 2017-18 fiscal year and each subsequent fiscal year,
27General Fund amounts appropriated in the annual Budget Act for
28the Medi-Cal program shall fund the nonfederal share of the
29additional payments to the extent that the rates of compensation
30for inpatient hospital services provided by the new hospital that
31would have been payable in the absence of the requirements of
32subdivision (b) are less than 72 percent of the new hospital’s
33projected Medi-Cal costs. With respect to the nonfederal share of
34the additional payments described in paragraph (2) of subdivision
35(b), however, this subparagraph shall be applicable only for
36inpatient services provided in conjunction with the implementation
37of Section 14182, and other mandatory managed care enrollment
38provisions implemented subsequent to January 1, 2011.
39(2) (A) begin delete end deleteThe remaining necessary nonfederal share of the
40additional payments, after taking into account the General Fund
P968 1amounts described in paragraph (1), may be funded with public
2funds that are transferred to the state from the County of Los
3Angeles, at the county’s election, pursuant to Section 14164. To
4the extent the county elects not to fund any portion of the remaining
5necessary nonfederal share, the applicable minimum reimbursement
6levels required in subdivision (b) shall be reduced accordingly.
7(B) begin deleteAny public end deletebegin insertPublic end insertfunds transferred to the state for payments
8to the new hospital
as described in this paragraph with respect to
9a fiscal period shall be expended solely for the nonfederal share
10of the payments. Notwithstanding any other law, except as provided
11in subdivision (m), the department shall not impose any fee or
12assessment in connection with the transferred funds or the
13payments provided for under this section, including, but not limited
14to, reimbursement for state staffing or administrative costs.
15(C) If any portion of the funds transferred pursuant to this
16paragraph is not expended, or not expected to be expended, for
17the specified rate amounts required in subdivision (b), the
18unexpended funds shall be returned promptly to the transferring
19county.
20(3) This subdivision shall not be construed to reduce the
21nonfederal share of payments funded by General Fund amounts
22below the amounts that would be funded without regard to the
23minimum payment levels
required under this section.
24(d) (1) In addition to payments meeting the applicable minimum
25reimbursement levels described in subdivision (b), the new hospital
26shall be eligible to receive supplemental payments. The
27supplemental payments shall be provided annually in amounts
28determined in consultation with the new hospital and the County
29of Los Angeles, and subject to paragraph (3).
30(2) The department shall seek federal approval, as necessary,
31to enable the new hospital to receive supplemental payments that
32are in addition to the applicable minimum reimbursement levels
33required in subdivision (b). The supplemental payments may be
34provided for under the mechanisms described in Sections 14166.12
35and 14301.4 or successor or modified mechanisms, or any other
36federally permissible payment mechanism. Supplemental payments
37that are payable through a Medi-Cal managed
care plan shall be
38subject to the same requirements described in subparagraph (C)
39of paragraph (2) of subdivision (b).
P969 1(3) If a nonfederal share is necessary to fund the supplemental
2payments, the County of Los Angeles may voluntarily provide
3public funds that are transferred to the state pursuant to Section
414164. The county may specify the type of supplemental payment
5for which it is transferring funds, and any other category relevant
6to the payment, including, but not limited to, fee-for-service
7supplemental payment, managed care rate range payment, and
8payment for services rendered to newly eligible beneficiaries as
9defined in subdivision (s) of Section 17612.2.
10(4) begin deleteAny public end deletebegin insertPublic end insertfunds
transferred to the state for
11supplemental payments to the new hospital as described in this
12subdivision with respect to a fiscal period shall be expended solely
13for the nonfederal share of the supplemental payments as specified
14pursuant to paragraph (3). Notwithstanding any other law,
15subdivision (o) of Section 14166.12 shall not apply, and the
16department shall not assess the fee described in subdivision (d) of
17Section 14301.4, or any other similar fee, except as provided in
18subdivision (m). If any portion of the funds transferred pursuant
19to this subdivision is not expended, or not expected to be expended,
20for the specified supplemental payments, the unexpended funds
21shall be returned promptly to the transferring county.
22(e) Notwithstanding any other law, all payments provided for
23under this section shall be treated as having been paid for purposes
24of any determination of available room under the federal upper
25payment limit, as specified in
Part 447 of Title 42 of the Code of
26Federal Regulations, with respect to the applicable class of services
27and class of health care provider.
28(f) (1) For purposes of this article, “new hospital” means a
29health facility that is certified under Title XVIII and Title XIX of
30the federal Social Security Act, and is licensed pursuant to Chapter
312 (commencing with Section 1250) of Division 2 of the Health
32and Safety Code to provide acute inpatient hospital services, and
33includes all components of the facility, with an inpatient hospital
34service location on the campus of the former Los Angeles County
35Martin Luther King, Jr.-Harbor Hospital.
36(2) “Medi-Cal managed care plan” shall have the meaning
37provided in paragraph (5) of subdivision (b) of Section 14199.1.
38(g) For purposes of this article, the new
hospital’s projected
39Medi-Cal costs shall be based on the cost finding principles applied
40under subdivision (b) of Section 14166.4, except that the projected
P970 1costs shall not be multiplied by the federal medical assistance
2percentage and are not subject to the reimbursement limitations
3set forth in Article 7.5 (commencing with Section 51536) of
4Chapter 3 of Subdivision 1 of Division 3 of Title 22 of the
5California Code of Regulations. The projected Medi-Cal costs
6shall be determined prior to the start of each fiscal year in
7consultation with the new hospital, using the best available and
8reasonable current estimates or projections made with respect to
9the new hospital for an annual period, and shall be considered final
10as of the start of the fiscal year for purposes of the minimum
11payment levels described in subdivision (b).
12(h) Notwithstanding any other law, the new hospital shall not
13be eligible to receive payments pursuant to Section
14166.11. This
14subdivision, however, shall not be construed to preclude the
15hospital from eligibility for disproportionate share status, or from
16receipt of any federal Medicaid disproportionate share hospital
17payments to which it would be entitled, pursuant to the Medi-Cal
18State Plan.
19(i) Except as specified in subdivision (h), this section shall not
20be construed to preclude the new hospital from receiving any other
21payment for which it is eligible in addition to the payments
22provided for by this section.
23(j) Notwithstanding any other law, for purposes of Article 12
24(commencing with Section 17612.1) of Chapter 6 of Part 5, the
25intergovernmental transfers described in this section as reflected
26in the actual net expenditures for all operating budget units of the
27County of Los Angeles Department of Health Services shall not
28be reduced in any manner in the determination of total costs
under
29paragraph (6) of subdivision (b) of Section 17612.5, by application
30of the imputed other entity intergovernmental transfer amounts or
31otherwise.
32(k) Notwithstanding the rulemaking provisions of Chapter 3.5
33(commencing with Section 11340) of Part 1 of Division 3 of Title
342 of the Government Code, the department may implement this
35section by means of all-facility letters, all-county letters, or similar
36instructions, without taking further regulatory action. This section
37shall not be construed to preclude the department from adopting
38regulations.
39(l) (1) The department shall obtain federal approvals or waivers
40as necessary to implement this section and to obtain federal
P971 1matching funds to the maximum extent permitted by federal law.
2This section shall be implemented only if, and to the extent that,
3federal financial participation is available and
this section does
4not jeopardize the federal financial participation available for any
5other state program.
6(2) This section shall be implemented only if, and to the extent
7that, any necessary federal approvals are obtained.
8(m) As part of its voluntary participation to provide the
9nonfederal share of payments under this section, the County of
10Los Angeles shall agree to reimburse the state for the nonfederal
11share of state staffing and administrative costs directly attributable
12to the cost of administrating the payments and associated
13intergovernmental transfers. The costs shall be documented and
14subject to review by the county.
Section 14166.22 of the Welfare and Institutions
16Code is amended to read:
(a) To the extent required to maximize available
18federal funds under the demonstration project and to the extent
19authorized by the Special Terms and Conditions for the
20demonstration project, the department may claim federal
21reimbursement for expenditures, consistent with the equitable
22distribution established under this article, in the following priority
23order:
24(1) The medically indigent adults long-term care program.
25(2) The Genetically Handicappedbegin delete Person’send deletebegin insert Personsend insert
Program
26established pursuant to Article 1 (commencing with Section
27125125) of Chapter 2 of Part 5 of Division 106 of the Health and
28Safety Code.
29(3) The Breast and Cervical Cancer Treatment Program
30established pursuant to Article 1.5 (commencing with Section
31104160) of Chapter 2 of Part 1 of Division 103 of the Health and
32Safety Code.
33(4) The California Children’s Services Program established
34pursuant to Article 5 (commencing with Section 123800) of
35Chapter 3 of Part 2 of Division 106 of the Health and Safety Code.
36(b) Notwithstanding any otherbegin delete stateend delete law, the federal
37reimbursement received as a result of a claim made pursuant to
38subdivision (a) shall be used to create General Fund savings solely
39for the department for
use in support of safety net hospitals under
40the demonstration project.
P972 1(c) The federal reimbursement received as a result of a claim
2made pursuant to subdivision (a) is hereby appropriated to the
3department for the program in which the claimed expenditures
4were made.
5(d) An amount of General Fund moneys appropriated to the
6department for programs specified in subdivision (a) equal to the
7amount of federal reimbursement identified pursuant to subdivision
8(c) is hereby reappropriated to the Health Care Deposit Fund to
9be used for the purposes set forth in this article.
The heading of Article 5.22 (commencing with
11Section 14167.35) is added to Chapter 7 of Part 3 of Division 9 of
12the Welfare and Institutions Code, to read:
13
Section 15151 of the Welfare and Institutions Code
17 is amended to read:
Duringbegin delete suchend deletebegin insert theend insert timesbegin delete asend deletebegin insert thatend insert grants-in-aid are provided
19or made available by the United States government for the purpose
20of defraying any portion of the costs of administration incurred
21for public assistance, the State Treasurer shall pay to each county
22an amount equal tobegin delete suchend deletebegin insert
theend insert
county’s proportionate share of the
23sum so granted for the cost of administration, which amount shall
24be used exclusively for payingbegin delete suchend deletebegin insert theend insert administrative costs. Except
25as provided in Section 15151.5begin insert,end insert the department shall determine
26the portion of the amount so granted or made available for
27administrative costs to be paid to the counties, which portion shall
28be determined pursuant to rules and regulations of the department
29and shall be not less than one-half of the amount so granted or
30made available. The department shall adopt rules and regulations
31begin delete whichend deletebegin insert
thatend insert shall be of uniform application for determining the
32proportionate shares of the respective counties of the portion so
33determined to be paid tobegin delete suchend deletebegin insert thoseend insert counties.
34This section shall become operative and shall supersede
35begin delete subdivisionend deletebegin insert provisionend insert (2) of Section 15150 duringbegin delete suchend deletebegin insert theend insert times
36begin delete asend deletebegin insert
thatend insert grants by the United States government, provided or made
37available to defray any portion of administrative costs incurred for
38public assistance, are not computed as a proportion ofbegin delete suchend deletebegin insert thoseend insert
39 costs of administration. Whenever this section is in effect, all other
P973 1sections referring to Section 15150 shall also be deemed to refer
2to this section.
Section 15862 of the Welfare and Institutions Code
4 is amended to read:
(a) The provisions of this chapter shall be implemented
6only if all of the following conditions are met:
7(1) Federal financial participation is available for this purpose.
8(2) Federal participation is approved.
9(3) The department determines that federal funds under Title
10XXI of the Social Security Act remain available after providing
11funds for all current enrollees and eligible children that are likely
12to enroll in the optional targeted low-income children group and,
13to the extent funded through the federal Children’s Health
14Insurance Program (Subchapter 21 (commencing with Section
151397aa) of Chapter 7 of Title 42 of the United States
Code), the
16Medi-Cal Access program and Medi-Cal program, as determined
17by a Department of Finance estimate.
18(4) Funds are appropriated specifically for this purpose.
19(b) The department may accept funding necessary for the
20preparation of the federal waiver applications or state plan
21amendments described in Section 15861 from a not-for-profit
22group or foundationbegin insert,end insert but only to the extent thatbegin delete suchend deletebegin insert theend insert funding
23may be eligible for federal financial participation.
Section 15885.5 of the Welfare and Institutions
25Code is amended to read:
begin deleteWhere end deletebegin insertIf end insertmore than one participating health plan is
27offered, the department shall make available to applicants eligible
28to enroll in the program sufficient information to make an informed
29choice among the various types of participating health plans. Each
30applicant shall be issued an appropriate document setting forth or
31summarizing the services to which an enrollee is entitled,
32procedures for obtaining major risk medical coverage, a list of
33contracting health plans and providers, and a summary of grievance
34procedures.
Section 15894.5 of the Welfare and Institutions
36Code is amended to read:
begin deleteFrom end deletebegin insert(a)end insertbegin insert end insertbegin insertFrom end insertmoney appropriated by the
38Legislature to the fund, the department may expend sufficient
39funds to carry out the purposes of this chapter and of Section
P974 110127.16 of the Insurance Code, and Section 1373.622 of the
2Health and Safety Code.
3 However,
end delete
4begin insert(b)end insertbegin insert end insertbegin insertHowever,end insert the statebegin delete shallend deletebegin insert isend insert notbegin delete beend delete liable beyond the assets
5of the fund for any obligations incurred, or liabilities sustained, in
6the operation of the California Major Risk Medical Insurance
7Program or for the expenditures described in Section 10127.16 of
8the Insurancebegin delete Code,end deletebegin insert Codeend insert and Section 1373.622 of the Health and
9Safety Code.
Section 16120 of the Welfare and Institutions Code
11 is amended to read:
A childbegin delete shall beend deletebegin insert isend insert eligible for Adoption Assistance
13Program benefits if all of the conditions specified in subdivisions
14(a) to (l), inclusive, are met or if the conditions specified in
15subdivision (m) are met.
16(a) It has been determined that the child cannot or should not
17be returned to the home of his or her parents as evidenced by a
18petition for termination of parental rights, a court order terminating
19parental rights, or a signed relinquishment, or, in the case of a
20tribal customary adoption, if the court has given full faith and
21credit to a tribal customary adoption order as provided for
pursuant
22to paragraph (2) of subdivision (e) of Section 366.26, or, in the
23case of a nonminor dependent the court has dismissed dependency
24or transitional jurisdiction subsequent to the approval of the
25nonminor dependent, adoption petition pursuant to subdivision (f)
26of Section 366.31.
27(b) The child has at least one of the following characteristics
28that are barriers to his or her adoption:
29(1) Adoptive placement without financial assistance is unlikely
30because of membership in a sibling group that should remain intact
31or by virtue of race, ethnicity, color, language, age of three years
32or older, or parental background of a medical or behavioral nature
33that can be determined to adversely affect the development of the
34child.
35(2) Adoptive placement without financial assistance is unlikely
36because the child has a mental,
physical, emotional, or medical
37disability that has been certified by a licensed professional
38competent to make an assessment and operating within the scope
39of his or her profession. This paragraph shall also apply to children
40with a developmental disability, as defined in subdivision (a) of
P975 1Section 4512, including those determined to require out-of-home
2nonmedical care, as described in Section 11464.
3(c) The need for an adoption subsidy is evidenced by an
4unsuccessful search for an adoptive home to take the child without
5financial assistance, as documented in the case file of the
6prospective adoptive child. The requirement for this search shall
7be waived when it would be against the best interest of the child
8because of the existence of significant emotional ties with
9prospective adoptive parents while in the care of these persons as
10a foster child.
11(d) The child satisfies any of the following criteria:
12(1) He or she is under 18 years of age.
13(2) He or she is under 21 years of age and has a mental or
14physical handicap that warrants the continuation of assistance.
15(3) Effective January 1, 2012, he or she is under 19 years of
16age, effective January 1, 2013, he or she is under 20 years of age,
17and effective January 1, 2014, he or she is under 21 years of age
18and as described in Section 10103.5, and has attained 16 years of
19age before the adoption assistance agreement became effective,
20and one or more of the conditions specified in paragraphs (1) to
21(5), inclusive, of subdivision (b) of Section 11403 applies.
22(e) The adoptive family is responsible for the child pursuant to
23the terms of an adoptive placement agreement or a final
decree of
24adoption and has signed an adoption assistance agreement.
25(f) The adoptive family is legally responsible for the support of
26the child and the child is receiving support from the adoptive
27parent.
28(g) The department or the county responsible for determining
29the child’s Adoption Assistance Program eligibility status and for
30providing financial aid, and the prospective adoptive parent, prior
31to or at the time the adoption decree is issued by the court, have
32signed an adoption assistance agreement that stipulates the need
33for, and the amount of, Adoption Assistance Program benefits.
34(h) The prospective adoptive parent or any adult living in the
35prospective adoptive home has completed the criminal background
36check requirements pursuant to Section 671(a)(20)(A) and (C) of
37Title 42 of the United States Code.
38(i) To be eligible for state funding, the child is the subject of an
39agency adoption, as defined in Section 8506 of the Family Code,
40and was any of the following:
P976 1(1) Under the supervision of a county welfare department as
2the subject of a legal guardianship or juvenile court dependency.
3(2) Relinquished for adoption to a licensed California private
4or public adoption agency, or another public agency operating a
5Title IV-E program on behalf of the state, and would have
6otherwise been at risk of dependency as certified by the responsible
7public child welfare agency.
8(3) Committed to the care of the department pursuant to Section
98805 or 8918 of the Family Code.
10(4) The child is an Indian child
and the subject of an order of
11adoption based on tribal customary adoption of an Indian child,
12as described in Section 366.24. Notwithstanding Section 8600.5
13of the Family Code, for purposes of this subdivision a tribal
14customary adoption shall be considered an agency adoption.
15(j) To be eligible for federal funding, in the case of a child who
16is not an applicable child for the federal fiscal year as defined in
17subdivision (n), the child satisfies any of the following criteria:
18(1) Prior to the finalization of an agency adoption, as defined
19in Section 8506 of the Family Code, or an independent adoption,
20as defined in Section 8524 of the Family Code, is filed, the child
21has met the requirements to receive federal supplemental security
22income benefits pursuant to Subchapter 16 (commencing with
23Section 1381) of Chapter 7 of Title 42 of the United States Code,
24as determined and
documented by the federal Social Security
25Administration.
26(2) The child was removed from the home of a specified relative
27and the child would have been AFDC eligible in the home of
28removal according to Section 606(a) or 607 of Title 42 of the
29United States Code, as those sections were in effect on July 16,
301996, in the month of the voluntary placement agreement or in the
31month court proceedings are initiated to remove the child, resulting
32in a judicial determination that continuation in the home would be
33contrary to the child’s welfare. The child must have been living
34with the specified relative from whom he or she was removed
35within six months of the month the voluntary placement agreement
36was signed or the petition to remove was filed.
37(3) The child was voluntarily relinquished to a licensed public
38or private adoption agency, or another public agency operating a
39Title IV-E
program on behalf of the state, and there is a petition
40to the court to remove the child from the home within six months
P977 1of the time the child lived with a specified relative and a subsequent
2judicial determination that remaining in the home would be
3contrary to the child’s welfare.
4(4) Title IV-E foster care maintenance was paid on behalf of
5the child’s minor parent and covered the cost of the minor parent’s
6child while the child was in the foster family home or child care
7institution with the minor parent.
8(5) The child is an Indian child and the subject of an order of
9adoption based on tribal customary adoption of an Indian child,
10as described in Section 366.24.
11(k) To be eligible for federal funding, in the case of a child who
12is an applicable child for the federal fiscal year, as defined in
13subdivision (n), the
child meets any of the following criteria:
14(1) At the time of initiation of adoptive proceedings was in the
15care of a public or licensed private child placement agency or
16Indian tribal organization pursuant to either of the following:
17(A) An involuntary removal of the child from the home in
18accordance with a judicial determination to the effect that
19continuation in the home would be contrary to the welfare of the
20child.
21(B) A voluntary placement agreement or a voluntary
22relinquishment.
23(2) He or she meets all medical or disability requirements of
24Title XVI with respect to eligibility for supplemental security
25income benefits.
26(3) He or she was residing in a foster family home or a child
27
care institution with the child’s minor parent, and the child’s minor
28parent was in the foster family home or child care institution
29pursuant to either of the following:
30(A) An involuntary removal of the child from the home in
31accordance with a judicial determination to the effect that
32continuation in the home would be contrary to the welfare of the
33child.
34(B) A voluntary placement agreement or voluntary
35relinquishment.
36(4) The child is an Indian child and the subject of an order of
37adoption based on tribal customary adoption of an Indian child,
38as described in Section 366.24.
P978 1(5) The nonminor dependent, as described in subdivision (v) of
2Section 11400, is the subject of an adoption pursuant to subdivision
3(f) of Section 366.31.
4(l) The child is a citizen of the United States or a qualified alien
5as defined in Section 1641 of Title 8 of the United States Code. If
6the child is a qualified alien who entered the United States on or
7after August 22, 1996, and is placed with an unqualified alien, the
8child must meet the five-year residency requirement pursuant to
9Section 673(a)(2)(B) of Title 42 of the United States Code, unless
10the child is a member of one of the excepted groups pursuant to
11Section 1612(b) of Title 8 of the United States Code.
12(m) A child or nonminor shall be eligible for Adoption
13Assistance Program benefits if the following conditions are met:
14(1) The child or nonminor received Adoption Assistance
15Program benefits with respect to a prior adoption and the child or
16nonminor is again available for adoption because the prior adoption
17
was dissolved and the parental rights of the adoptive parents were
18terminated or because the child’s or nonminor’s adoptive parents
19died and the child or nonminor meets the special needs criteria
20described in subdivisions (a) to (c), inclusive. When a nonminor
21is receiving Adoption Assistance Program benefits after 18 years
22of age and the nonminor’s adoptive parents die, the juvenile court
23may resume dependency jurisdiction over the nonminor pursuant
24tobegin delete subdivision (e) ofend delete Sectionbegin delete 388.end deletebegin insert
388.1end insert
25(2) To receive federal funding, the citizenship requirements in
26subdivision (l).
27(n) (1) Except as provided in this subdivision, “applicable child”
28means a child for whom an adoption assistance agreement is
29entered into under this section during any federal fiscal year
30described in this subdivision if the child attained the applicable
31age for that federal fiscal year before the end of that federal fiscal
32year.
33(A) For federal fiscal year 2010, the applicable age is 16 years.
34(B) For federal fiscal year 2011, the applicable age is 14 years.
35(C) For federal fiscal year 2012, the applicable age is 12 years.
36(D) For federal fiscal year 2013, the applicable age is 10 years.
37(E) For federal fiscal year 2014, the applicable age is eight years.
38(F) For federal fiscal year 2015, the applicable age is six years.
39(G) For federal fiscal year 2016, the applicable age is four years.
40(H) For federal fiscal year 2017, the applicable age is two years.
P979 1(I) For federal fiscal year 2018 and thereafter, any age.
2(2) Beginning with the 2010 federal fiscal year, the term
3“applicable child” shall include a child of any age on the date on
4which an adoption assistance agreement is entered
into on behalf
5of the child under this section if the child meets both of the
6following criteria:
7(A) He or she has been in foster care under the responsibility
8of the state for at least 60 consecutive months.
9(B) He or she meets the requirements of subdivision (k).
10(3) Beginning with the 2010 federal fiscal year, an applicable
11child shall include a child of any age on the date that an adoption
12assistance agreement is entered into on behalf of the child under
13this section, without regard to whether the child is described in
14paragraph (2), if the child meets all of the following criteria:
15(A) He or she is a sibling of a child who is an applicable child
16for the federal fiscal year, under subdivision (n) or paragraph (2).
17(B) He or she is to be placed in the same adoption placement
18as an “applicable child” for the federal fiscal year who is their
19sibling.
20(C) He or she meets the requirements of subdivision (k).
Section 16500.5 of the Welfare and Institutions
22Code is amended to read:
(a) (1) The Legislature hereby declares its intent to
24encourage the continuity of the family unit by:
25(A) (i) Providing family preservation services.
26(ii) For purposes of this subdivision, “family preservation
27services” means intensive services for families whose children,
28without these services, would be subject to any of the following:
29(I) Be at imminent risk of out-of-home placement.
30(II) Remain in existing out-of-home placement for longer periods
31of time.
32(III) Be placed in a more restrictive out-of-home placement.
33(B) Providing supportive services for those children within the
34meaning of Sections 360, 361, and 364 when they are returned to
35the family unit or when a minor will probably soon be within the
36jurisdiction of the juvenile court pursuant to Section 301.
37(C) Providing counseling and family support services designed
38to eradicate the situation that necessitated intervention.
39(2) The Legislature finds that maintaining abused and neglected
40children in foster care grows increasingly costly each year, and
P980 1that adequate funding for family services that might enable these
2children to remain in their homes is not as readily available as
3funding for foster care placement.
4(3) The Legislature
further finds that other state bodies have
5addressed this problem through various systems of flexible
6reimbursement in child welfare programs that provide for more
7intensive and appropriate services to prevent foster care placement
8or significantly reduce the length of stay in foster care.
9(b) It is the intent of the Legislature that family preservation
10and support services in California conform to the federal definitions
11contained in Section 431 of the Social Security Act as contained
12in Public Law 103-66, the Omnibus Budget Reconciliation Act of
131987. The Legislature finds and declares that California’s existing
14family preservation programs meet the intent of the federal
15Promoting Safe and Stable Families program.
16(c) (1) Services that may be provided under this program may
17include, but are not limited to, counseling, mental health treatment
18and substance
abuse treatment services, including treatment at a
19residential substance abuse treatment facility that accepts families,
20parenting, respite, day treatment, transportation, homemaking, and
21family support services. Each county that chooses to provide mental
22health treatment and substance abuse treatment shall identify and
23develop these services in consultation with county mental health
24treatment and substance abuse treatment agencies. Additional
25services may include those enumerated in Sections 16506 and
2616507. The services to be provided pursuant to this section may
27be determined by each participating county. Each county may
28contract with individuals and organizations for services to be
29provided pursuant to this section. Each county shall utilize available
30private nonprofit resources in the county prior to developing new
31county-operated resources when these private nonprofit resources
32are of at least equal quality and costs as county-operated resources
33and shall utilize available county resources of at least
equal quality
34and cost prior to new private nonprofit resources.
35(2) Participating counties authorized by this subdivision shall
36provide specific programs of direct services based on individual
37family needs as reflected in the service plans to families of the
38following:
P981 1(A) Children who are dependent children not taken from
2physical custody of their parents or guardians pursuant to Section
3364.
4(B) Children who are dependent children removed from the
5physical custody of their parents or guardian pursuant to Section
6361.
7(C) Children who it is determined will probably soon be within
8the jurisdiction of the juvenile court pursuant to Section 301.
9(D) Upon approval of the department, children
who have been
10adjudged wards of the court pursuant to Sections 601 and 602.
11(E) Upon approval of the department, families of children
12subject to Sections 726 and 727.
13(F) Upon approval of the department, children who are
14determined to require out-of-home placement pursuant to Section
157572.5 of the Government Code.
16(3) The services shall only be provided to families whose
17children will be placed in out-of-home care without the provision
18of services or to children who can be returned to their families
19with the provision of services.
20(4) The services selected bybegin delete anyend deletebegin insert aend insert
participating county shall be
21reasonable and meritorious and shall demonstrate cost-effectiveness
22and success at avoiding out-of-home placement, or reducing the
23length of stay in out-of-home placement. A county shall not expend
24more funds for services under this subdivision than that amount
25which would be expended for placement in out-of-home care.
26(5) The program in each county shall be deemed successful if
27it meets the following standards:
28(A) Enables families to resolve their own problems, effectively
29utilize service systems, and advocate for their children in
30educational and social agencies.
31(B) Enhancing family functioning by building on family
32strengths.
33(C) At least 75 percent of the children receiving services remain
34in their own
home for six months after termination of services.
35(D) During the first year after services are terminated:
36(i) At least 60 percent of the children receiving services remain
37at home one year after services are terminated.
38(ii) The average length of stay in out-of-home care of children
39selected to receive services who have already been removed from
40their home and placed in out-of-home care is 50 percent less than
P982 1the average length of stay in out-of-home care of children who do
2not receive program services.
3(E) Two years after the termination of family preservation
4services:
5(i) The average length of out-of-home stay of children selected
6to receive services under this section who, at the
time of selection,
7are in out-of-home care, is 50 percent less than the average length
8of stay in out-of-home care for children in out-of-home care who
9do not receive services pursuant to this section.
10(ii) At least 60 percent of the children who were returned home
11pursuant to this section remain at home.
12(6) Funds used for services provided under this section shall
13supplement, not supplant, child welfare services funds available
14for services pursuant to Sections 16506 and 16507.
15(7) Programs authorized after the original pilot projects shall
16submit data to the department upon the department’s request.
17(d) (1) A county welfare department social worker or probation
18officer may, pursuant to an appropriate court order, return a
19
dependent minor or ward of the court removed from the home
20pursuant to Section 361 to his or her home, with appropriate
21interagency family preservation program services.
22(2) The county probation department may, with the approval of
23the State Department of Social Services, through an interagency
24agreement with the county welfare department, refer cases to the
25county welfare department for the direct provision of services
26under this subdivision.
27(e) Foster care funds shall remain within the administrative
28authority of the county welfare department and shall be used only
29for placement services or placement prevention services or county
30welfare department administrative cost related to the interagency
31family preservation program.
32(f) To the extent permitted by federal law, any federal funds
33provided for services to
families and children may be utilized for
34the purposes of this section.
35(g) A county may establish family preservation programs that
36serve one or more geographic areas of the county, subject to the
37approval of the State Department of Social Services.
38(1) All funds expended by a county for activities under this
39section shall be expended by the county in a manner that will
40maximize eligibility for federal financial participation.
P983 1(2) begin deleteAny end deletebegin insertA end insertcounty, subject to the approval of the State
2Department of Social Services, may claim federal financial
3participation, if allowable and available, as provided by the State
4Department of Social
Services in the federal Promoting Safe and
5Stable Families program in accordance with the federal guidelines
6and regulations for that county’s AFDC-FC expenditures pursuant
7to subdivision (d) of Section 11450, for children subject to Sections
8300, 301, 360, and 364, in advance, provided that the county
9conducts a program of family reunification and family maintenance
10services for families receiving these services pursuant to Sections
11300, 301, 360, and 364, and as permitted by the department,
12children subject to Sections 601, 602, 726, andbegin delete 727,end deletebegin insert
727 of this
13code,end insert and Section 7572.5 of the Government Code.
14(h) In order to maintain federal funding and meet federal
15requirements, the State Department of Social Services and the
16Office of Child Abuse Prevention shall provide administrative
17oversight, monitoring, and consultation to ensure both of the
18following:
19(1) Each county includes in its county plan information that
20details what services are to be funded under this section and who
21will be served, and how the services are coordinated with the array
22of services available in the county. In order to maintain federal
23funding to meet federal requirements, the State Department of
24Social Services shall review these plans and provide technical
25assistance as needed, as provided in Section 10601.2. In order to
26meet federal requirements, the Office of Child Abuse Prevention
27shall require counties
to submit annual reports, as part of the current
28reporting process, on program services and children and families
29served. The annual reporting process shall be developed jointly
30by the department and county agencies for the purpose of meeting
31federal reporting requirements.
32(2) In order to maximize federal financial participation for the
33federal Promoting Safe and Stable Families grant, funds expended
34from this program are in compliance with data-reporting
35requirements in order to meet federal nonsupplantation
36requirements in accordance with Section 1357.32(f) of Title 45 of
37the Code of Federal Regulations, and the 25 percent state match
38requirement in accordance with Section 1357.32(d) of Title 45 of
39the Code of Federal Regulations.
P984 1(i) Beginning in the 2011-12 fiscal year, and for each fiscal
2year thereafter, funding and expenditures for programs and
3activities under this
section shall be made with moneys allocated
4pursuant tobegin delete Sectionsend deletebegin insert
Sectionend insert 30025begin delete and 30029.2end delete of the Government
5Code.
Section 16513 of the Welfare and Institutions Code,
7as added by Chapter 1235 of the Statutes of 1978, is amended and
8renumbered to read:
Funding of this chapter is subject to the provisions
11of Part 1.5 (commencing with Section 10100)begin delete of this divisionend delete.
Section 16517 of the Welfare and Institutions Code,
13as added by Section 2 of Chapter 497 of the Statutes of 1992, is
14amended and renumbered to read:
(a) begin deleteNo end deletebegin insertA end insertsocial worker or probation officer acting as
17an officer of the court shallbegin insert notend insert make an out-of-home placement
18of a dependent or ward of the court pursuant to this chapter with
19any of the following:
20(1) begin deleteAny end deletebegin insertA
end insertrelative of the social worker or probation officer
21responsible for the placement of the child.
22(2) The spouse ofbegin delete anyend deletebegin insert aend insert relative described in paragraph (1).
23(b) begin deleteNo end deletebegin insertA end insertsocial worker or probation officer acting as an officer
24of the court shallbegin insert notend insert receive compensation for the out-of-home
25placement of a dependent or ward of the court other than the
26compensation received as an
employee of the county or the state.
Section 16524.7 of the Welfare and Institutions
28Code is amended to read:
(a) (1) There is hereby established the Commercially
30Sexually Exploited Children Program. This program shall be
31administered by the State Department of Social Services.
32(2) The department, in consultation with the County Welfare
33Directors Association of California, shall develop an allocation
34methodology to distribute funding for the program. Funds allocated
35pursuant to this section shall be utilized to cover expenditures
36related to the costs of implementing the program, prevention and
37intervention services, and training related to children who are
38victims of commercial sexual exploitation.
39(3) (A) Funds shall be provided to counties that elect to
40
participate in the program for the provision of training to county
P985 1children’s services workers to identify, intervene, and provide case
2management services to children who are victims of commercial
3sexual exploitation and trafficking, and to foster caregivers for the
4prevention and identification of potential victims.
5(B) The department shall contract to provide training for county
6workers and foster caregivers. Training shall be selected and
7contracted for in consultation with the County Welfare Directors
8Association, county children’s services representatives, and other
9stakeholders. The department shall consult and collaborate with
10the California Community Colleges Chancellor’s Office to provide
11training for foster parents of licensed foster family homes.
12(4) Funds provided to the counties electing to participate in the
13program shall be used for prevention activities,
intervention
14activities, and services to children who are victims, or at risk of
15becoming victims, of commercial sexual exploitation. These
16activities and services may include, but are not limited to, all of
17the following:
18(A) Training foster children to help recognize and help avoid
19commercial sexual exploitation. Counties may target training
20activities to foster children who are at higher risk of sexual
21exploitation.
22(B) Engaging survivors of commercial sexual exploitationbegin delete to: begin insert to do all of the following:end insert
23(i) provideend delete
24begin insert(i)end insertbegin insert end insertbegin insertProvideend insert support to county staff who serve children who are
25victims of commercial sexualbegin delete exploitation; (ii) forend deletebegin insert
exploitation.end insert
26begin insert (ii)end insertbegin insert end insertbegin insertForend insert activities that may include training and technical
27begin delete assistance; and (iii) toend deletebegin insert assistance.end insert
28begin insert(iii)end insertbegin insert end insertbegin insertToend insert
serve as advocates for and perform outreach and support
29to children who are victims of commercial sexual exploitation.
30(C) Consulting and coordinating with homeless youth shelters
31and other service providers who work with children who are
32disproportionately at risk of, or involved in, commercial sexual
33exploitation, including, but not limited to, lesbian, gay, bisexual,
34and transgender youth organizations, regarding outreach and
35support to children who are victims of commercial sexual
36exploitation.
37(D) Hiring county staff trained and specialized to work with
38children who are victims of commercial sexual exploitation to
39support victims and their caregivers, and to provide case
P986 1management to support interagency and cross-departmental
2response.
3(E) Providing supplemental foster care rates for placement of
4
child victims of commercial sexual exploitation adjudged to be
5within the definition of Section 300begin delete to be paidend delete
to foster homes,
6relatives, foster family agency certified homes, or other specialized
7placementsbegin delete to provideend delete for the increased care and supervision needs
8of the victim in accordance with Section 11460.
9(b) Funds allocated for the program shall not supplant funds for
10existing programs.
11(c) (1) In order to ensure timely access to services to which
12commercially sexually exploited children are entitledbegin delete toend delete as
13dependents in foster care, in participating counties, county agency
14representatives from mental health, probation, public health, and
15substance abuse disorders shall participate in the case planning
16and assist in linking commercially sexually exploited children to
17services that
serve children who are in the child welfare system
18and that are identified in the child’s case plan and may include
19other stakeholders as determined by the county.
20(2) The entities described in paragraph (1) shall provide input
21to the child welfare services agency regarding the services and
22supports needed forbegin insert theseend insert children to support treatment needs and
23aid in their recovery and may assist in linking these children to
24services that are consistent with their county plans submitted to
25the department pursuant to subdivision (d).
26(d) (1) A county electing to receive funding from the
27Commercially Sexually Exploited Children Program pursuant to
28this chapter shall submit a plan describing how the county intends
29to utilize the funds allocated pursuant to
paragraph (4) of
30subdivision (a).
31(2) The county shall submit a plan to the department pursuant
32to a process developed by the department, in consultation with the
33County Welfare Directors Association. The plan shall include
34documentation indicating the county’s collaboration with county
35partner agencies and children-focused entities, which shall include
36the formation of a multidisciplinary team to serve children pursuant
37to this chapter.
38A multidisciplinary team serving a child pursuant to this chapter
39shall include, but is not limited to, appropriate staff from the county
40child welfare, probation, mental health, substance abuse disorder,
P987 1and public health departments. Staff from a local provider of
2services to this population, local education agencies, and local law
3enforcement, and survivors of commercial sexual exploitation and
4trafficking may be included on the
team.
Section 16524.8 of the Welfare and Institutions
6Code is amended to read:
(a) Each county electing to receive funds from the
8Commercially Sexually Exploited Children Program pursuant to
9this chapter shall develop an interagency protocol to be utilized in
10serving sexually exploited children. The county protocol shall be
11developed by a team led by a representative of the county human
12services department and shall include representatives from each
13of the following agencies:
14(1) The county probation department.
15(2) The county mental health department.
16(3) The county public health department.
17(4) The juvenile court in the county.
18The team may include, but shall not be limited to, representatives
19from local education agencies, local law enforcement, survivors
20of sexual exploitation and trafficking, and other providers as
21necessary.
22(b) At a minimumbegin insert,end insert the interagency protocol shall address the
23provision of services to children who have been sexually exploited
24and are within the definition of Section 300, including, but not
25limited to, the use of a multidisciplinary team approach to provide
26coordinated case management, service planning, and services to
27begin insert theseend insert children.
Section 16524.9 of the Welfare and Institutions
29Code is amended to read:
The State Department of Social Services, in
31consultation with the County Welfare Directors Association, shall
32ensure that the Child Welfare Services/Case Management System
33is capable of collecting data concerning children who are
34commercially sexually exploited, including children who are
35referred to the child abusebegin delete hotline,end deletebegin insert hotline andend insert children currently
36served by county child welfare and probation departments who
37are subsequently identified as victims of commercial sexual
38exploitation.
P988 1(a) The department shall disseminate any necessary instructions
2on data entry to the county child welfare and
probation department
3staff.
4(b) The department shall implement this section no later than
5June 1, 2015.
The heading of Chapter 7 (commencing with Section
716997.1) of Part 4.7 of Division 9 of the Welfare and Institutions
8Code is repealed.
9
The heading of Chapter 6 (commencing with Section
1317500) of Part 5 of Division 9 of the Welfare and Institutions Code,
14as added by Section 1 of Chapter 90 of the Statutes of 1988, is
15amended and renumbered to read:
16
Section 17603 of the Welfare and Institutions Code
20 is amended to read:
(a) This subdivisionbegin delete shallend delete onlybegin delete applyend deletebegin insert appliesend insert until the
22end of the 2012-13 fiscal year. On or before the 27th day of each
23month, the Controller shall allocate to the local health and welfare
24trust fund health accounts the amounts deposited and remaining
25unexpended and unreserved on the 15th day of the month in the
26Health Subaccount of the Sales Tax Account of the Local Revenue
27Fund, in accordance with paragraphs (1) and (2):
28(1) For the 1991-92 fiscal year, allocations shall be made in
29
accordance with the following schedule:
|
Jurisdiction |
Allocation |
|
Alameda |
4.5046 |
|
Alpine |
0.0137 |
|
Amador |
0.1512 |
|
Butte |
0.8131 |
|
Calaveras |
0.1367 |
|
Colusa |
0.1195 |
|
Contra Costa |
2.2386 |
|
Del Norte |
0.1340 |
|
El Dorado |
0.5228 |
|
Fresno |
2.3531 |
|
Glenn |
0.1391 |
|
Humboldt |
0.8929 |
|
Imperial |
0.8237 |
|
Inyo |
0.1869 |
|
Kern |
1.6362 |
|
Kings |
0.4084 |
|
Lake |
0.1752 |
|
Lassen |
0.1525 |
|
Los Angeles |
37.2606 |
|
Madera |
0.3656 |
|
Marin |
1.0785 |
|
Mariposa |
0.0815 |
|
Mendocino |
0.2586 |
|
Merced |
0.4094 |
|
Modoc |
0.0923 |
|
Mono |
0.1342 |
|
Monterey |
0.8975 |
|
Napa |
0.4466 |
|
Nevada |
0.2734 |
|
Orange |
5.4304 |
|
Placer |
0.2806 |
|
Plumas |
0.1145 |
|
Riverside |
2.7867 |
|
Sacramento |
2.7497 |
|
San Benito |
0.1701 |
|
San Bernardino |
2.4709 |
|
San Diego |
4.7771 |
|
San Francisco |
7.1450 |
|
San Joaquin |
1.0810 |
|
San Luis Obispo |
0.4811 |
|
San Mateo |
1.5937 |
|
Santa Barbara |
0.9418 |
|
Santa Clara |
3.6238 |
|
Santa Cruz |
0.6714 |
|
Shasta |
0.6732 |
|
Sierra |
0.0340 |
|
Siskiyou |
0.2246 |
|
Solano |
0.9377 |
|
Sonoma |
1.6687 |
|
Stanislaus |
1.0509 |
|
Sutter |
0.4460 |
|
Tehama |
0.2986 |
|
Trinity |
0.1388 |
|
Tulare |
0.7485 |
|
Tuolumne |
0.2357 |
|
Ventura |
1.3658 |
|
Yolo |
0.3522 |
|
Yuba |
0.3076 |
|
Berkeley |
0.0692 |
|
Long Beach |
0.2918 |
|
Pasadena |
0.1385 |
15(2) For the 1992-93 fiscal year and fiscal years thereafter until
16the commencement of the 2013-14 fiscal year, the allocations to
17each county and city and county shall equal the amounts received
18in the prior fiscal year by each county, city, and city and county
19from the Sales Tax Account and the Sales Tax Growth Account
20of the Local Revenue Fund into the health and welfare trust fund.
21(b) (1) For the 2013-14 fiscal year, on the 27th day of each
22month, the Controller shall allocate, in the same proportion as
23funds in paragraph (2) of subdivision (a) were allocated, to each
24county’s and
city and county’s local health and welfare trust fund
25health accounts, the amounts deposited and remaining unexpended
26and unreserved on the 15th day of the month in the Health
27Subaccount of the Sales Tax Account of the Local Revenue Fund.
28(2) (A) Beginning January 2014 and for the remainder of the
292013-14 fiscal year, on or before the 27th of each month, the
30Controller shall transfer to the Family Support Subaccount from
31the Health Subaccount amounts determined pursuant to a schedule
32prepared by the Department of Finance in consultation with the
33California State Association of Counties. Cumulatively, no more
34than three hundred million dollars ($300,000,000) shall be
35transferred.
36(B) Every month, after the transfers in subparagraph (A) have
37occurred, the remainder shall be allocated to the counties and cities
38and counties in the same proportions as funds in
paragraph (2) of
39subdivision (a) were allocated.
P991 1(C) For counties participating in the County Medical Services
2Program, transfers from each county shall not be greater than the
3monthly amount the county would otherwise pay pursuant to
4paragraph (2) of subdivision (j) of Section 16809 for participation
5in the County Medical Services Program. Any difference between
6the amount paid by these counties and the proportional share of
7the three hundred million dollars ($300,000,000) calculated as
8payable by these counties and the County Medical Services
9Program shall be paid from the funds available for allocation to
10the County Medical Services Program in accordance with the
11Welfare and Institutions Code.
12(3) For the 2013-14 fiscal year, the Controller, using the same
13timing and criteria used in paragraph (1), shall allocate to each
14city, not to include a city and county, funds that shall
equal the
15amounts received in the prior fiscal year by each city from the
16Sales Tax Account and the Sales Tax Growth Account of the Local
17Revenue Fund into the health and welfare trust fund.
18(c) (1) begin delete(A)end deletebegin delete end deleteFor the 2014-15 fiscal year and for every fiscal
19year thereafter, the Department of Finance, in consultation with
20the California State Association of Counties, shall calculate the
21amount each county or city and county shall contribute to the
22Family Support Subaccount in accordance with Section 17600.50.
23(B)
end delete
24begin insert(2)end insert On or before the 27th of each month, the Controller shall
25transfer, based on a schedule prepared by the Department of
26Finance in consultation with the California State Association of
27Counties, from the funds deposited and remaining unexpended
28and unreserved on the 15th day of the month in the Health
29Subaccount of the Sales Tax Account of the Local Revenue Fund
30to the Family Support Subaccount, funds that equal, over the course
31of the year, the amount determined inbegin delete subparagraph (A)end deletebegin insert
paragraph
32(1)end insert pursuant to a schedule provided by the Department of Finance.
33(C)
end delete
34begin insert(3)end insert After the transfer inbegin delete subparagraph (B)end deletebegin insert paragraph (2)end insert has
35occurred, the Controller shall allocate on or before the 27th of each
36month to health account in the local health and welfare trust fund
37of every county and city and county from a schedule prepared by
38the Department of Finance, in consultation with the California
39State Association of Counties, any funds
remaining in the Health
40Account from the funds deposited and remaining unexpended and
P992 1unreserved on the 15th day of the month in the Health Subaccount
2of the Sales Tax Account of the Local Revenue Fund. The schedule
3shall be prepared as the allocations would have been distributed
4pursuant to paragraph (2) of subdivision (a).
5(D)
end delete
6begin insert(4)end insert For the 2014-15 fiscal year and for every fiscal year
7thereafter, the Controller, using the same timing and criteria as
8had been used in paragraph (2) of subdivision (a), shall allocate
9to each city, not to include a city and county, funds that equal the
10amounts received in the prior fiscal year by each city from the
11Sales Tax Account and the
Sales Tax Growth Account of the Local
12Revenue Fund into the health and welfare trust fund.
The heading of Chapter 4.5 (commencing with
14Section 18260) of Part 6 of Division 9 of the Welfare and
15Institutions Code, as added by Chapter 75 of the Statutes of 2006,
16is amended and renumbered to read:
17
Section 18901.2 of the Welfare and Institutions
22Code is amended to read:
(a) There is hereby created the State Utility
24Assistance Subsidy (SUAS), a state-funded energy assistance
25program that shall provide energy assistance benefits to eligible
26CalFresh households so that the households may receive a standard
27utility allowance to be used to help meetbegin delete itsend deletebegin insert theirend insert energy costs,
28receive information about energy efficiency, and so that some
29households may experience an increase in federal Supplemental
30Nutrition Assistance Program benefits, as well as benefit from
31paperwork reduction.
32(b) To the extent required by federal law, the Department of
33Community
Services and Development shall delegate authority to
34the State Department of Social Services to design, implement, and
35maintain SUAS as a program created exclusively for purposes of
36this section, similar to the federal Low-Income Home Energy
37Assistance Program (LIHEAP) (42 U.S.C. Sec. 8621 et seq.).
38(c) In designing, implementing, and maintaining the SUAS
39program, the State Department of Social Services shall do all of
40the following:
P993 1(1) Provide households that do not currently qualify for, nor
2receive, a standard utility allowance, with a SUAS benefit in an
3amount and frequency sufficient to meet federal requirements
4specified in Section 2014(e)(6)(C)(iv) of Title 7 of the United
5States Code if the household meets either of the following
6requirements:
7(A) The household would become eligible for CalFresh benefits
8if
the standard utility allowance was provided.
9(B) The household would receive increased benefits if the
10standard utility allowance was provided.
11(2) Provide the SUAS benefit without requiring the applicant
12or recipient to provide additional paperwork or verification.
13(3) Deliver the SUAS benefit using the Electronic Benefit
14Transfer (EBT) system.
15(4) Notwithstanding any other law, notification of a recipient’s
16impending EBT dormant account status shall not be required when
17the remaining balance in a recipient’s account at the time the
18account becomes inactive is equal to or less than the value of one
19year of SUAS benefits.
20(5) Ensure that receipt of the SUAS benefit pursuant to this
21section
does not adversely affect a CalFresh recipient household’s
22eligibility, reduce a household’s CalFresh benefits, or disqualify
23the applicant or recipient of CalFresh benefits from receiving other
24public benefits, including other utility benefits, for which it may
25qualify.
26(d) (1) To the extent permitted by federal law, a CalFresh
27household that receives SUAS benefits in the month of application
28for new cases or in the previous 12 months for existing cases is
29entitled to use the full standard utility allowance for the purposes
30of calculating CalFresh benefits. A CalFresh household shall be
31entitled to use the full standard utility allowance regardless of
32whether the SUAS benefit actually is expended by the household.
33(2) If use of the full standard utility allowance, instead of the
34homeless shelter deduction, results in a lower amount of CalFresh
35benefits for a
homeless household, the homeless household shall
36be entitled to use the homeless shelter deduction instead of the full
37standard utility allowance.
38(e) This section shall not be implemented until funds are
39appropriated for that purpose by the Legislature in the annual
40Budget Act or related legislation.
P994 1(f) This section shall become operative on July 1, 2014.
Section 18901.11 of the Welfare and Institutions
3Code is amended to read:
(a) For the purposes of Section 273.5(b)(11)(ii) of
5Title 7 of the Code of Federal Regulations, an educational program
6that could be a component of a CalFresh E&T program described
7in Section 18926.5, as identified by the department, shall be
8considered an employment and training program under Section
9273.7 of Title 7 of the Code of Federal Regulations, unless
10prohibited by federal law.
11(b) The department shall, in consultation with representatives
12of the office of the Chancellor of the California Community
13Colleges, offices of the Chancellor of the California State
14University, University of California Chancellors’ offices, the
15California Workforce Investment Board, county human services
16agencies, and advocates for students and clients, establish a
17protocol
to identify and verify all potential exemptions to the
18eligibility rule described in Section 273.5(a) of Title 7 of the Code
19of Federal Regulations, and to identify and verify participation in
20educational programs, including, but not limited to, self-initiated
21placements, that would exempt a student from the eligibility rule
22described in Section 273.5(a) of Title 7 of the Code of Federal
23Regulations. To the extent possible, this consultation shall take
24place through existing workgroups convened by the department.
25(c) If the United States Department of Agriculture requires
26federal approval of the exemption designation established pursuant
27to subdivision (a) and the protocol established pursuant to
28subdivision (b), the department shall seek and obtain that approval
29before publishing the guidance or regulation required by
30subdivision (e).
31(d) (1) This section
does not require a county human services
32agency to offer a particular component, support services, or
33begin delete worker’send deletebegin insert
workersend insertbegin insert’end insert compensation to a student found eligible for an
34exemption pursuant to this section.
35(2) This section does not restrict or require the use of federal
36funds for the financing of CalFresh E&T programs.
37(3) This section does not require a college or university to
38provide a student with information necessary to verify eligibility
39for CalFresh.
P995 1(e) Notwithstanding the rulemaking provisions of the
2Administrative Procedure Act (Chapter 3.5 (commencing with
3Section 11340) of Part 1 of Division 3 of Title 2 of the Government
4Code), the department shall implement this section by all-county
5letters or similar instructions beginning no later than October 1,
62015, until
regulations are adopted. The department shall adopt
7regulations implementing this section on or before October 1,
82017.
Section 25 of Chapter 279 of the Statutes of 2005
10is amended to read:
Any section of any act, except Senate Billbegin delete 1107,end deletebegin insert 1108,end insert
12 enacted by the Legislature during the 2005 calendar year that takes
13effect on or before January 1, 2006, and that amends, amends and
14renumbers, adds, repeals and adds, or repeals any one or more of
15the sections affected by this act, shall prevail over this act, whether
16this act is enacted prior to, or subsequent to, the enactment of this
17act. The repeal, or repeal and addition, of any article, chapter, part,
18title, or division of any code by this act shall not become operative
19if any section of any other act that is enacted by the Legislature
20during the 2005 calendar year and takes effect on or before January
211,
2006, amends, amends and renumbers, adds, repeals and adds,
22or repeals any section contained in that article, chapter, part, title,
23or division.
Section 1 of Chapter 15 of the Statutes of 2014 is
25amended to read:
It is the intent of the Legislature that the
27Administrative Director of the Division of Workers’ Compensation
28collect data pursuant to subdivision (a) of Section 3702.2begin insert of the
29Labor Codeend insert for the purpose of determining whether the extended
30statute of limitations established by this act provides an adequate
31timeline for the families of fallen firefighters and peace officers
32to commence proceedings for the collection of death benefits as
33provided for in this act, such that the Legislature and the Governor,
34when considering any extension of the date of repeal of Section
355406.7 of the Labor Code, be informed of the facts surrounding
36the mortality rate of public safety officers who succumb to these
37job-related diseases.
Section 1 of Chapter 243 of the Statutes of 2014 is
39amended to read:
The California Law Revision Commission shall,
2within existing resources, conduct a study of the standards for
3recognition of a tribal court or a foreign court judgment, under the
4Tribal Court Civil Money Judgment Act (Title 11.5 (commencing
5with Sectionbegin delete 1730)ofend deletebegin insert 1730) ofend insert Part 3 of the Code of Civil
6Procedure) and the Uniform Foreign-Country Money Judgments
7Recognition Act (Chapter 2 (commencing with Sectionbegin delete 1713)ofend delete
8begin insert 1713) ofend insert Title 11 of Part 3 of the Code of Civil Procedure). On
or
9before January 1, 2017, the California Law Revision Commission
10shall report its findings, along with any recommendations for
11improvement of those standards, to the Legislature and the
12Governor.
Any section of any act enacted by the Legislature
14during the 2015 calendar year that takes effect on or before January
151, 2016, and that amends, amends and renumbers, adds, repeals
16and adds, or repeals a section that is amended, amended and
17renumbered, added, repealed and added, or repealed by this act,
18shall prevail over this act, whether that act is enacted prior to, or
19subsequent to, the enactment of this act. The repeal, or repeal and
20addition, of any article, chapter, part, title, or division of any code
21by this act shall not become operative if any section of any other
22act that is enacted by the Legislature during the 2015 calendar year
23and takes effect on or before January 1, 2016, amends, amends
24and renumbers, adds, repeals and adds, or repeals any section
25contained in that article, chapter,
part, title, or division.
O
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