Amended in Senate June 15, 2016

Amended in Assembly May 4, 2016

Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2827

Introduced by Assembly begin delete Member Levine end delete begin insert Members Levine, Low, and Thurmond end insert

February 19, 2016

begin delete An act to amend Section 1770 of the Civil Code, relating to unfair competition. end delete begin insert An act to add and repeal Chapter 16 (commencing with Section 1425) to Title 10 of Part 2 of the Penal Code, relating to prisoners. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2827, as amended, Levine. begin delete Advertising: Made in U.S.A. label: violations: cure. end delete begin insert Prisoners: mental health treatment. end insert

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Existing law prohibits a person from being tried, adjudged to punishment, or having his or her probation, mandatory supervision, postrelease community supervision, or parole revoked while that person is mentally incompetent. Existing law establishes a process by which a defendant’s mental competency is evaluated and by which the defendant receives treatment, including, if applicable, antipsychotic medication, with the goal of returning the defendant to competency. Existing law credits time spent by a defendant in a state hospital or other facility as a result of commitment during the process toward the term of any imprisonment for which the defendant is sentenced.

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This bill, until January 1, 2021, for the Counties of Los Angeles and Santa Clara, would authorize a defendant who is or has been eligible for public mental health services due to a serious mental illness or who is eligible for Social Security Disability Insurance benefits due to a diagnosed mental illness to petition the court, after the defendant’s plea or conviction but prior to sentencing, for a sentence that includes mental health treatment. The bill would authorize a court, if it finds that the defendant has shown that he or she meets the criteria by a preponderance of the evidence, to order the Department of Corrections and Rehabilitation or the county authority to provide specified mental health service, including placement in a residential mental health treatment facility instead of state prison or county jail, placement in a mental health program within the state prison or county jail, or preparation of a postrelease mental health treatment plan. The bill would authorize the court, upon petition of the defendant or the prosecution, to recall a sentence that includes a mental health order and resentence the defendant to other mental health treatment or resentence the defendant without mental health treatment. The bill would provide that the defendant has the right to counsel for these proceedings. The bill would require the Legislative Analyst’s Office to submit a report to the Legislature and the Governor, as specified.

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By imposing additional duties upon county jail authorities, this bill would create a state-mandated local program.

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The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

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This bill would make legislative findings and declarations as to the necessity of a special statute for the Counties of Los Angeles and Santa Clara.

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Existing law prohibits the sale or offering of sale in the state of any merchandise on which merchandise or on its container appears the words “Made in U.S.A.,” “Made in America,” “U.S.A.,” or similar words when the merchandise or any article, unit, or part thereof, has been entirely or substantially made, manufactured, or produced outside of the United States.

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Existing law, the Consumers Legal Remedies Act, makes unlawful certain acts identified as unfair methods of competition and unfair or deceptive acts or practices undertaken by any person in a transaction intended to result or which results in the sale or lease of goods to any consumer.

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This bill would include a violation of the “Made in U.S.A.” provisions as an unfair method of competition and unfair or deceptive act or practice under the Consumers Legal Remedies Act.

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Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

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

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begin insert SECTION 1. end insert   

end insert begin insert

This act shall be known and may be cited as the
Mental Health Justice Pilot Project.

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begin insert SEC. 2. end insert   

end insert begin insert

The Legislature finds and declares the following:

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(a) Exposure to violence increases the risk of developing a
mental health condition such as post-traumatic stress disorder.
Children in underserved communities are more likely to be exposed
to violence than other children.

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(b) Ten times as many people with mental illness are in prisons
and jails today than are in mental health treatment facilities.

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(c) Correctional facilities spend two to three times more money
on adults with mental illnesses than they do on people who do not
live with a mental illness.

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(d) Despite overall decreasing prison populations, California’s
prisons are experiencing an increasing demand for mental health
treatment services as prison inmates require mental health
treatment at higher rates. This number is anticipated to continue
to increase in the next five years and beyond.

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(e) In California, the annual prison cost for an inmate in the
general population is $51,000, while the annual community housing
and outpatient treatment costs for a person with mental illness are
60 percent less at $20,412.

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(f) Nearly half of all prisoners in California are mentally ill and
have received psychiatric treatment within the past year. This
number has almost doubled in the last 15 years, making jails and
prisons the de facto mental health system.

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(g) Individuals with mental illnesses tend to stay longer in prison
or jail and, when released, are at a higher risk of returning to
prison or jail than those without these illnesses.

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(h) Mental health court participants have a significantly lower
recidivism rate (47 percent) compared to similar defendants in
traditional court.

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(i) Mental health courts allow for the consideration of a
defendant’s mental health status during court proceedings and
have shown to save $7 in costs for every $1 spent.

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(j) According to federal court decisions, conditions in California
prisons exacerbate mental health issues significantly. Offenders
with mental illness are often subjected to higher rates of physical
and sexual trauma, forced restraints, solitary confinement, and
overmedication while incarcerated. Those who are kept in isolation
are at higher risk for psychiatric injury, self-harm, and suicide.

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(k) A defendant’s mental illness should inform case processing
and the nature of any criminal charges, in alignment with public
safety and a defendant’s constitutional rights.

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(l) California must increase diversion programs to redirect
defendants with mental illness away from prisons and jails, which
exacerbate mental illnesses, impede treatment, and increase costs,
and toward proven mental health treatment services.

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begin insert

begin insert SEC. 3. end insert   

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begin insert Chapter 16 (commencing with Section 1425) is added
to Title 10 of Part 2 of the end insert begin insert Penal Code end insert begin insert , to read: end insert

begin insert

 

Chapter   begin insert 16. end insert Mental Health Treatment

 

begin insert 1425. end insert   

(a) A defendant who has pleaded guilty or nolo
contendere to, or was convicted of, a felony or misdemeanor and
who currently is, or at any prior time was, eligible for public
mental health services due to serious mental illness or who
currently is, or at any prior time was, eligible for Social Security
Disability Insurance benefits due to a diagnosed mental illness
may petition the court for a sentence that includes mental health
treatment. The petition shall be filed after the defendant’s plea or
conviction, but before his or her sentencing.

(b) The defendant shall bear the burden of establishing by a
preponderance of the evidence that he or she meets the criteria in
subdivision (a).

(c) If the court determines that the defendant has met his or her
burden, as described in subdivision (b), and that placement would
not pose an unreasonable risk of danger to public safety and is in
the interest of justice, the court may order that the defendant’s
sentence include one or more of the following:

(1) (A) A requirement that the defendant serve, if the defendant
agrees, all or a part of his or her sentence in a residential mental
health treatment facility instead of in the state prison or a county
jail.

(B) A defendant is not eligible for subparagraph (A) if his or
her current plea or conviction is for a violent felony, as defined
in subdivision (c) of Section 667.5, or if the defendant is required
by an initiative statute to serve his or her entire sentence only in
state prison.

(2) Regardless of the offense to which the defendant pleaded
guilty or nolo contendere or for which the defendant was convicted,
a requirement that the Department of Corrections and
Rehabilitation or county jail authority, as applicable, place the
defendant in a mental health program within the state prison or
county jail system at a level of care determined to be appropriate
by the department’s mental health staff or county mental health
staff, within 30 days of the defendant’s sentencing.

(3) Regardless of the offense to which the defendant pleaded
guilty or nolo contendere or for which the defendant was convicted,
a requirement that the Department of Corrections and
Rehabilitation or the county jail authority, as applicable, prepare
a postrelease mental health treatment plan six months prior to the
defendant’s release from custody. The treatment plan shall specify
the manner in which the defendant will receive mental health
treatment services following release from custody and shall
address, if applicable and at the discretion of the court, medication
management, housing, and substance abuse treatment.

(d) At any time, upon a petition from the defendant or
prosecutor, if it is in the public interest, the court may recall a
sentence that includes a mental health treatment order issued
under this section and either resentence the defendant to other
mental health treatment authorized under subdivision (c) or
resentence the defendant in the same manner as if he or she had
not previously been sentenced with application of this section. The
defendant shall receive credit for the time he or she served on the
prior sentence and shall not be sentenced to a longer term than
originally imposed.

(e) The defendant shall have the right to counsel for all
proceedings under this section.

(f) This section shall apply only to the counties of Los Angeles
and Santa Clara.

begin insert 1425.5. end insert   

On or before December 31, 2020, the Legislative
Analyst’s Office shall submit a report to the Legislature and the
Governor on the effectiveness of this chapter in treating mental
illness, reducing prison populations, and public reducing costs.

begin insert 1426. end insert   

This chapter shall remain in effect only until January 1,
2021, and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2021, deletes or extends that
date.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert begin insert

The Legislature finds and declares that a special law
is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because the existing resources in Los Angeles and
Santa Clara make those counties uniquely suited to implement the
Mental Health Justice Pilot Project.

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begin insert

begin insert SEC. 5. end insert   

end insert begin insert

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.

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begin delete

SECTION 1.  

Section 1770 of the Civil Code is amended to
read:

1770.  

(a) The following unfair methods of competition and
unfair or deceptive acts or practices undertaken by any person in
a transaction intended to result or which results in the sale or lease
of goods or services to any consumer are unlawful:

(1) Passing off goods or services as those of another.

(2) Misrepresenting the source, sponsorship, approval, or
certification of goods or services.

(3) Misrepresenting the affiliation, connection, or association
with, or certification by, another.

(4) Using deceptive representations or designations of
geographic origin in connection with goods or services.

(5) Representing that goods or services have sponsorship,
approval, characteristics, ingredients, uses, benefits, or quantities
which they do not have or that a person has a sponsorship,
approval, status, affiliation, or connection which he or she does
not have.

(6) Representing that goods are original or new if they have
deteriorated unreasonably or are altered, reconditioned, reclaimed,
used, or secondhand.

(7) Representing that goods or services are of a particular
standard, quality, or grade, or that goods are of a particular style
or model, if they are of another.

(8) Disparaging the goods, services, or business of another by
false or misleading representation of fact.

(9) Advertising goods or services with intent not to sell them
as advertised.

(10) Advertising goods or services with intent not to supply
reasonably expectable demand, unless the advertisement discloses
a limitation of quantity.

(11) Advertising furniture without clearly indicating that it is
unassembled if that is the case.

(12) Advertising the price of unassembled furniture without
clearly indicating the assembled price of that furniture if the same
furniture is available assembled from the seller.

(13) Making false or misleading statements of fact concerning
reasons for, existence of, or amounts of price reductions.

(14) Representing that a transaction confers or involves rights,
remedies, or obligations which it does not have or involve, or
which are prohibited by law.

(15) Representing that a part, replacement, or repair service is
needed when it is not.

(16) Representing that the subject of a transaction has been
supplied in accordance with a previous representation when it has
not.

(17) Representing that the consumer will receive a rebate,
discount, or other economic benefit, if the earning of the benefit
is contingent on an event to occur subsequent to the consummation
of the transaction.

(18) Misrepresenting the authority of a salesperson,
representative, or agent to negotiate the final terms of a transaction
with a consumer.

(19) Inserting an unconscionable provision in the contract.

(20) Advertising that a product is being offered at a specific
price plus a specific percentage of that price unless (A) the total
price is set forth in the advertisement, which may include, but is
not limited to, shelf tags, displays, and media advertising, in a size
larger than any other price in that advertisement, and (B) the
specific price plus a specific percentage of that price represents a
markup from the seller’s costs or from the wholesale price of the
product. This subdivision shall not apply to in-store advertising
by businesses which are open only to members or cooperative
organizations organized pursuant to Division 3 (commencing with
Section 12000) of Title 1 of the Corporations Code where more
than 50 percent of purchases are made at the specific price set forth
in the advertisement.

(21) Selling or leasing goods in violation of Chapter 4
(commencing with Section 1797.8) of Title 1.7.

(22) (A) Disseminating an unsolicited prerecorded message by
telephone without an unrecorded, natural voice first informing the
person answering the telephone of the name of the caller or the
organization being represented, and either the address or the
telephone number of the caller, and without obtaining the consent
of that person to listen to the prerecorded message.

(B) This subdivision does not apply to a message disseminated
to a business associate, customer, or other person having an
established relationship with the person or organization making
the call, to a call for the purpose of collecting an existing
obligation, or to any call generated at the request of the recipient.

(23) (A) The home solicitation, as defined in subdivision (h)
of Section 1761, of a consumer who is a senior citizen where a
loan is made encumbering the primary residence of that consumer
for the purposes of paying for home improvements and where the
transaction is part of a pattern or practice in violation of either
subsection (h) or (i) of Section 1639 of Title 15 of the United States
Code or paragraphs (1), (2), and (4) of subdivision (a) of Section
226.34 of Title 12 of the Code of Federal Regulations.

(B) A third party shall not be liable under this subdivision unless
(1) there was an agency relationship between the party who
engaged in home solicitation and the third party or (2) the third
party had actual knowledge of, or participated in, the unfair or
deceptive transaction. A third party who is a holder in due course
under a home solicitation transaction shall not be liable under this
subdivision.

(24) (A) Charging or receiving an unreasonable fee to prepare,
aid, or advise any prospective applicant, applicant, or recipient in
the procurement, maintenance, or securing of public social services.

(B) For purposes of this paragraph, the following definitions
shall apply:

(i) “Public social services” means those activities and functions
of state and local government administered or supervised by the
State Department of Health Care Services, the State Department
of Public Health, or the State Department of Social Services, and
involved in providing aid or services, or both, including health
care services, and medical assistance, to those persons who,
because of their economic circumstances or social condition, are
in need of that aid or those services and may benefit from them.

(ii) “Public social services” also includes activities and functions
administered or supervised by the United States Department of
Veterans Affairs or the California Department of Veterans Affairs
involved in providing aid or services, or both, to veterans, including
pension benefits.

(iii) “Unreasonable fee” means a fee that is exorbitant and
disproportionate to the services performed. Factors to be
considered, when appropriate, in determining the reasonableness
of a fee, are based on the circumstances existing at the time of the
service and shall include, but not be limited to, all of the following:

(I) The time and effort required.

(II) The novelty and difficulty of the services.

(III) The skill required to perform the services.

(IV) The nature and length of the professional relationship.

(V) The experience, reputation, and ability of the person
providing the services.

(C) This paragraph shall not apply to attorneys licensed to
practice law in California, who are subject to the California Rules
of Professional Conduct and to the mandatory fee arbitration
provisions of Article 13 (commencing with Section 6200) of
Chapter 4 of Division 3 of the Business and Professions Code,
when the fees charged or received are for providing representation
in administrative agency appeal proceedings or court proceedings
for purposes of procuring, maintaining, or securing public social
services on behalf of a person or group of persons.

(25) (A) Advertising or promoting any event, presentation,
seminar, workshop, or other public gathering regarding veterans’
benefits or entitlements that does not include the following
statement in the same type size and font as the term “veteran” or
any variation of that term:

(i) “I am not authorized to file an initial application for Veterans’
Aid and Attendance benefits on your behalf, or to represent you
before the Board of Veterans’ Appeals within the United States
Department of Veterans Affairs in any proceeding on any matter,
including an application for such benefits. It would be illegal for
me to accept a fee for preparing that application on your behalf.”
The requirements of this clause do not apply to a person licensed
to act as an agent or attorney in proceedings before the Agency of
Original Jurisdiction and the Board of Veterans’ Appeals within
the United States Department of Veterans Affairs when that person
is offering those services at the advertised event.

(ii) The statement in clause (i) shall also be disseminated, both
orally and in writing, at the beginning of any event, presentation,
seminar, workshop, or public gathering regarding veterans’ benefits
or entitlements.

(B) Advertising or promoting any event, presentation, seminar,
workshop, or other public gathering regarding veterans’ benefits
or entitlements which is not sponsored by, or affiliated with, the
United States Department of Veterans Affairs, the California
Department of Veterans Affairs, or any other congressionally
chartered or recognized organization of honorably discharged
members of the Armed Forces of the United States, or any of their
auxiliaries that does not include the following statement, in the
same type size and font as the term “veteran” or the variation of
that term:

“This event is not sponsored by, or affiliated with, the United
States Department of Veterans Affairs, the California Department
of Veterans Affairs, or any other congressionally chartered or
recognized organization of honorably discharged members of the
Armed Forces of the United States, or any of their auxiliaries.
None of the insurance products promoted at this sales event are
endorsed by those organizations, all of which offer free advice to
veterans about how to qualify and apply for benefits.”

(i) The statement in this subparagraph shall be disseminated,
both orally and in writing, at the beginning of any event,
presentation, seminar, workshop, or public gathering regarding
veterans’ benefits or entitlements.

(ii) The requirements of this subparagraph shall not apply in a
case where the United States Department of Veterans Affairs, the
California Department of Veterans Affairs, or other congressionally
chartered or recognized organization of honorably discharged
members of the Armed Forces of the United States, or any of their
auxiliaries have granted written permission to the advertiser or
promoter for the use of its name, symbol, or insignia to advertise
or promote the event, presentation, seminar, workshop, or other
public gathering.

(26) Advertising, offering for sale, or selling a financial product
that is illegal under state or federal law, including any cash payment
for the assignment to a third party of the consumer’s right to receive
future pension or veteran’s benefits.

(27) Representing that a product is made in California by using
a Made in California label created pursuant to Section 12098.10
of the Government Code, unless the product complies with Section
12098.10 of the Government Code.

(28) Representing that a product is made in the United States
by using “Made in U.S.A.,” “Made in America,” “U.S.A.,” or
similar words if the merchandise or any article, unit, or part thereof,
has been entirely or substantially made, manufactured, or produced
outside of the United States unless the product complies with
Section 17533.7 of the Business and Professions Code.

(b) (1) It is an unfair or deceptive act or practice for a mortgage
broker or lender, directly or indirectly, to use a home improvement
contractor to negotiate the terms of any loan that is secured,
whether in whole or in part, by the residence of the borrower and
which is used to finance a home improvement contract or any
portion of a home improvement contract. For purposes of this
subdivision, “mortgage broker or lender” includes a finance lender
licensed pursuant to the California Finance Lenders Law (Division
9 (commencing with Section 22000) of the Financial Code), a
residential mortgage lender licensed pursuant to the California
Residential Mortgage Lending Act (Division 20 (commencing
with Section 50000) of the Financial Code), or a real estate broker
licensed under the Real Estate Law (Division 4 (commencing with
Section 10000) of the Business and Professions Code).

(2) This section shall not be construed to either authorize or
prohibit a home improvement contractor from referring a consumer
to a mortgage broker or lender by this subdivision. However, a
home improvement contractor may refer a consumer to a mortgage
lender or broker if that referral does not violate Section 7157 of
the Business and Professions Code or any other law. A mortgage
lender or broker may purchase an executed home improvement
contract if that purchase does not violate Section 7157 of the
Business and Professions Code or any other law. Nothing in this
paragraph shall have any effect on the application of Chapter 1
(commencing with Section 1801) of Title 2 to a home improvement
transaction or the financing of a home improvement transaction.

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