Amended in Assembly June 16, 2015

Senate Bill No. 84

Introduced by Committee on Budget and Fiscal Review

January 9, 2015

begin delete An act relating to the Budget Act of 2015. end delete begin insert An act to amend Section 3273 of the Civil Code, to amend Section 4061 of the Food and Agricultural Code, to amend Sections 905.2, 4467, 4470, 8600, 11011.1, 12432, 13400, 13401, 13402, 13403, 13404, 13405, 13406, 13407, 13974.1, 16522, 16551, 16552, 16553, 16554, 16626, 16627, 16628, 16629, and 27397 of, to amend the heading of Chapter 5 (commencing with Section 13400) of Part 3 of Division 3 of Title 2 of, to add Sections 8619.5, 17604, 19213, 21231, 21232, 65050, and 65051 to, and to add Article 3.9 (commencing with Section 8574.30) and Article 5.9 (commencing with Section 8590.6) to Chapter 7 of Division 1 of Title 2 of, the Government Code, to amend Sections 50661 and 50716 of, and to add and repeal Chapter 4 (commencing with Section 34090) of Part 1.6 of Division 24 of, the Health and Safety Code, to add Sections 10089.395 and 10089.397 to the Insurance Code, to amend Sections 6309 and 7314 of the Labor Code, to amend Section 10340 of the Public Contract Code, and to amend Sections 10878, 41030, 41032, 42010, and 42023 of, and to add Sections 17138.3, 24308.7, 42010.7, 42023.5, 42101.7, and 42104 to, the Revenue and Taxation Code, relating to state government, and making an appropriation therefor, to take effect immediately, bill related to the budget. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 84, as amended, Committee on Budget and Fiscal Review. begin delete Budget Act of 2015. end delete begin insert State government. end insert

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(1) Existing law prohibits a person, firm, corporation, or association that is a nongovernmental entity and contracts to perform public health and safety labor or services for a public agency from displaying on a vehicle a logo of the public agency that reasonably could be interpreted or construed as implying that the labor or services are being provided by employees of the public agency, unless the vehicle conspicuously displays a specified statement. Existing law similarly prohibits a person or employee of that entity from wearing a uniform bearing a logo of the public agency that reasonably could be interpreted or construed as making that implication, unless the uniform conspicuously displays the logo and specific additional information. Existing law defines “public health and safety labor or services” to include emergency medical services.

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This bill would revise that definition to include prehospital emergency medical services.

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(2) Existing law divides the state into agricultural districts, and provides for the management of these districts by district agricultural associations. Existing law excludes district agricultural associations from preparing or submitting any written report to the Governor, the Legislature, or a state agency, except as specified.

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This bill would require a district agricultural association to annually report its real property information to the Department of General Services, as specified.

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(3) Existing law, relating to the California Victim Compensation and Government Claims Board, cross-references an item code number used in administering the annual Budget Act.

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This bill would make a technical amendment to update the cross-reference to use the current item code number.

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(4) Existing law requires the State Architect to establish a certified access specialist program (CASp) and authorizes the State Architect to require applicants to pay specified fees to meet the costs of administering the program. Existing law imposes, on and after January 1, 2013, and until December 31, 2018, an additional state fee of $1 on any applicant, as specified, and divides the moneys received between the local entity that collected the moneys and the Division of the State Architect, pursuant to specified percentages. Existing law requires a local entity collecting the additional fee and the Division of the State Architect to each make an annual report to the Legislature and to the chairs of specified committees. Under existing law, a local entity is required to include in the report moneys spent to increase CASp services and to fund programs to facilitate compliance.

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This bill would require a local entity collecting the additional fee to instead report to the Division of the State Architect, and would expand the information required in the report to include activities undertaken to increase CASp services and to facilitate accessibility compliance. The bill would also require the Division of the State Architect to include in its report to the Legislature the total fees collected by each city, county, or city and county.

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By revising and expanding the duties of local governments with respect to the reporting of CASp fees, this bill would impose a state-mandated local program.

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(5) The California Emergency Services Act requires the Governor to coordinate the State Emergency Plan and any programs necessary for the mitigation of the effects of an emergency in this state, as specified.

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The act authorizes the Governor, with advice of the Office of Emergency Services, to divide the state into mutual aid regions for the more effective application, administration, and coordination of mutual aid and other emergency-related activities.

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This bill would require the Office of Emergency Services to coordinate response and recovery operations in each mutual aid region. The bill would require the office, in consultation with relevant local and state agencies, to develop and adopt a state fire service and rescue emergency mutual aid plan that would be an annex to the State Emergency Plan.

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(6) Existing law establishes the Railroad Accident Prevention and Immediate Deployment Force in the California Environmental Protection Agency and designates the force as being responsible for providing immediate onsite response capability in the event of a large-scale release of toxic materials resulting from a surface transportation accident. Existing law requires the agency to develop a state railroad accident prevention and immediate deployment plan, in consultation with specified state entities, other potentially affected state, local, or federal agencies, and affected businesses.

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Existing law requires the Office of Emergency Services to serve as the central point in state government for the emergency reporting of spills, unauthorized releases, or other accidental releases of hazardous materials and to coordinate the notification of the appropriate state and local administering agencies that may be required to respond to those spills, unauthorized releases, or other accidental releases.

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This bill would create the Regional Railroad Accident Preparedness and Immediate Response Force in the office, consisting of specified representatives, and would designate this force as being responsible for providing regional and onsite response capabilities in the event of a release of hazardous materials from a railcar or a railroad accident involving a railcar designated to transport hazardous material commodities, as specified. The bill would require the office, in consultation with specified entities, to develop a state regional railroad accident preparedness and immediate response plan that would be an annex to the State Emergency Plan. The bill would require the force and the Office of Spill Prevention and Response to coordinate in their respective authorities and responsibilities to avoid any duplication of effort, ensure cooperation, and promote the sharing of information regarding the risk of discharge of petroleum by rail into state waters.

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This bill would require the Director of Emergency Services to establish a schedule of fees to be paid by a person owning any of the 25 most hazardous material commodities that are transported by rail in California. The bill would require that the fees be fair, as required by the federal Hazardous Materials Transportation Act, and state the intent of the Legislature that the schedule of fees reflect the proportionate risks to both the public safety and the environment resulting from a release of hazardous materials and the expense of preparing to respond to those risks. The bill would authorize the director to exempt from the fee a shipment of hazardous materials that meets certain criteria and prohibit the collection of fees in excess of the reasonable regulatory costs to the state. The bill would require the director to consider adjusting the fee not less frequently than every 3 years. The bill would require the director to create an industry advisory committee to advise the director on setting the fee and other policy matters. The bill would also require every person who operates a railroad that transports hazardous materials by railcar to register with the board and to remit the fees to the board pursuant to the Fee Collection Procedures Law. The bill would create the Regional Railroad Accident Preparedness and Immediate Response Fund in the State Treasury and would require that all revenues, interest, penalties, and other amounts collected pursuant to the bill’s requirements be deposited into the fund, less refunds and reimbursement to the board for expenses incurred in the administration and collection of the fee. The bill would require that moneys in the fund, upon appropriation by the Legislature, be used by the director for specified purposes. The bill would provide the director with the authority to collect an amount in fees that does not exceed specified amounts for specified calendar years. The bill would require the director to contract with the Department of Finance for the preparation of a detailed report on the financial basis and programmatic effectiveness of the plan and fund. The bill would require the director, on or before January 1, 2019, and every 3 years thereafter, to submit the report to the Governor and the Legislature.

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The Fee Collection Procedures Law makes a violation of any provision of the law, or of certain requirements imposed by the board pursuant to the law, a crime.

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By expanding the application of the Fee Collection Procedures Law, the violation of which is a crime, this bill would impose a state-mandated local program.

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(7) Existing law provides that a person who deprives or violates the personal liberty of another with the intent to obtain forced labor or services or for effecting or maintaining other specified felonies is guilty of the crime of human trafficking. Existing law creates the Office of Emergency Services in the Office of the Governor, under the supervision of the Director of Emergency Services, and commits to it the responsibility for the state’s emergency and disaster services, as specified.

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This bill would create the Human Trafficking Victims Assistance Fund and require money in the fund to be used by the Office of Emergency Services for the distribution of grants, as specified, to qualified nonprofit organizations, as defined, providing services to victims of human trafficking and for reimbursement of costs incurred by the office in distributing these grants.

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(8) Existing law requires the Department of General Services to dispose of surplus state real property in a specified manner. Existing law requires a local agency or nonprofit affordable housing sponsor, in order to be considered as a potential priority buyer of surplus state real property, to notify the department of its interest in surplus state real property within 90 days of the department posting on its Internet Web site the notice of availability of the surplus state real property.

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This bill would require the department to notify the chairpersons of the fiscal committees of the Legislature within 30 days of the expiration of the 90 day timeframe if no local agency or nonprofit affordable housing sponsor informs the department of its interest in acquiring the property within that period.

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(9) Existing law authorizes the Controller, until June 30, 2015, to procure, modify, and implement a new human resource management system that meets the needs of a modern state government, known as the 21st Century Project.

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This bill would extend that authorization for one year, until June 30, 2016.

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(10) The Financial Integrity and State Manager’s Accountability Act of 1983 requires state agency heads to be responsible for the establishment and maintenance of systems of internal accounting and administrative controls and makes legislative findings and declarations in this regard. The act requires a system of internal accounting and administrative control to include specific elements, including, but not limited to, a system of authorization and recordkeeping procedures adequate to provide effective accounting control over assets, liabilities, revenues, and expenditures. The act requires a state agency head to conduct a biennial review and report the results to the Legislature, California State Auditor, Controller, Treasurer, Attorney General, Governor, and Director of Finance.

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This bill would rename the act as the State Leadership Accountability Act and consolidate certain terminology in the act under the terms “agency head” and “state agency.” This bill would modify the meaning of “internal control” to include, among other elements, 5 specified components. This bill would eliminate the requirement of submitting a biennial report to the Treasurer, Attorney General, and Governor, and additionally require submission to the Secretary of Government Operations.

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(11) Existing law establishes the Missing Children Reward Fund, a continuously appropriated fund in the State Treasury, and authorizes the California Victim Compensation and Government Claims Board to make cash rewards from that fund to persons providing information leading to the location of any child listed in the missing children registry, as provided.

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This bill would abolish the continuously appropriated Missing Children Reward Fund and transfer any remaining balance to the Restitution Fund, a continuously appropriated fund. This bill would require the board to instead make the cash rewards from the Restitution Fund. This bill would also make a technical amendment to these provisions.

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(12) Existing law authorizes the Treasurer to deposit specified assets in his or her custody into the Federal Home Loan Bank of San Francisco or the Federal Reserve Bank of San Francisco, or a branch thereof.

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This bill would, instead, authorize deposit into the Federal Home Loan Bank of San Francisco or any federal reserve bank, or a branch thereof, and would make conforming changes.

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Existing law requires that banks, savings and loan associations, and credit unions deposit specified securities with the Treasurer in order to be eligible to receive and retain demand or time deposits of state funds, including, but not limited to, specified letters of credit issued by the Federal Home Loan Bank of San Francisco.

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The bill would authorize an eligible bank headquartered outside of the state to submit letters of credit drawn on its regional federal home loan bank.

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(13) The California Constitution requires the state, whenever the Legislature or a state agency mandates a new program or higher level of service on any local government, to provide a subvention of funds to reimburse the local government, with specified exceptions.

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This bill would require the Department of Finance, in collaboration with the Secretary of State and the Legislative Analyst’s Office, to convene a working group to evaluate alternatives for funding elections-related state mandates, and would require the Department of Finance to submit to the Legislature a report that summarizes the findings of the working group, including recommendations to the Legislature. This bill would also require the Department of Finance to conduct a survey of county election officials during years in which a statewide general election is held to determine whether or not counties are carrying out the requirements set forth in specified state mandates relating to elections, and would require the Department of Finance to report the results of the survey to the Legislature, as provided.

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(14) Existing law establishes the Department of Human Resources in state government to operate the state civil service system pursuant to Article VII of the California Constitution, the Government Code, the merit principle, and applicable rules duly adopted by the State Personnel Board. Existing law requires that civil service positions be filled by appointment, except as provided. Existing law, among other things, requires the department to propose legislation, as part of the 2015-16 fiscal year budget proposal submitted to the Legislature in January 2015, to establish the state’s policy regarding the use of additional appointments for state employees.

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This bill would define the term “additional appointment,” would require an additional appointment to comply with state civil service laws and rules, and would require the department to adopt policies to advise state agencies regarding the procedures and appropriate use of additional appointments.

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(15) The Public Employees Retirement Law (PERL) creates the Public Employees’ Retirement System, which provides pension and other benefits to members of the system and prescribes conditions for service after retirement. The PERL permits a retired person to serve as an elective officer without reinstatement from retirement or loss or interruption of benefits, provided that his or her retirement allowance is suspended to the extent that the allowance is based on service in that elective office. The PERL also permits a person retired for disability to serve without reinstatement if the person is below the mandatory age for retirement for persons in the job in which the person will serve and he or she is not disabled for that employment. In this circumstance, the PERL prohibits service in a position from which the person retired or a position in the same member classification and requires reduction of the person’s disability retirement pension during the employment to an amount that, when added to his or her compensation, equals the maximum compensation earnable by a person holding the position that he or she held at retirement. Effective on and after January 1, 2013, the California Public Employees’ Pension Reform Act of 2013 (PEPRA) establishes various limits on retirement benefits generally applicable to specified public employee retirement systems and, among other things, prescribes limits on service after retirement without reinstatement that prevail over the provisions in PERL described above.

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This bill would reenact the provisions regarding service after retirement in the PERL described above, to apply on and after the effective date of PEPRA.

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(16) Existing law, the Electronic Recording Delivery Act of 2004, authorizes a county recorder, upon approval by resolution of the board of supervisors and system certification by the Attorney General, to establish an electronic recording delivery system for the delivery for recording of specified digitized and digital electronic records, subject to specified conditions, including system certification, regulation, and oversight by the Attorney General. Existing law requires participating counties to pay for the direct cost of regulation and oversight by the Attorney General, and authorizes those counties to impose fees to cover those costs. Existing law also authorizes the Attorney General to charge a fee directly to a vendor seeking approval of software and other services as part of an electronic recording delivery system. Fees paid to the Attorney General under these provisions are deposited in the Electronic Recording Authorization Account, which is in the Special Deposit Fund and is continuously appropriated to the Attorney General for these purposes.

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This bill would redesignate the Electronic Recording Authorization Account in the Special Deposit Fund as the Electronic Recording Authorization Fund in the State Treasury.

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(17) Existing law establishes the Naturalization Services Program, administered within the Department of Community Services and Development, to fund community-based organizations in assisting legal permanent residents in obtaining citizenship.

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This bill would establish the Statewide Director of Immigrant Integration in the Governor’s Office of Planning and Research, appointed by the Governor, for the purpose of developing a comprehensive statewide report on programs and services that serve immigrants and programs and services currently managed by a state agency or department to support California immigrants. The bill would require the report to be submitted to the Governor and Legislature, on or before January 1, 2016. The bill would further require the office on or before July 10, 2017, to develop an online clearinghouse of immigrant services, resources, and programs. The bill would additionally require the director to monitor the implementation of statewide laws and regulations that serve immigrants. The bill would also create the Immigration Integration Fund, would authorize the fund to be funded by public and private donations, and would require those donations to be used, as specified.

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(18) Existing law requires the Department of Housing and Community Development to provide rental-related subsidies to persons rendered homeless, or at risk of becoming homeless, due to unemployment, underemployment, or other economic hardship resulting from the state of emergency proclaimed by the Governor based on drought conditions. Existing law authorizes the department to administer the housing rental-related subsidies or contract with qualified local government agencies or nonprofit organizations to administer the program. Existing law establishes the Housing Rehabilitation Loan Fund and continuously appropriates moneys in the fund for specified purposes.

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This bill would authorize the department to provide temporary assistance for persons moving out of a housing unit due to a lack of potable water resulting from the state of emergency proclaimed by the Governor relating to drought conditions if the person has exhausted all reasonable attempts to find a potable water source and the housing unit is served by a private well or water utility with fewer than 15 connections that is running out of potable water due to drought conditions. The bill would authorize the department to administer the housing assistance or contract with qualified local government agencies or nonprofit organizations to administer the assistance. The bill would require the department to adopt guidelines to implement these provisions and exempt the department from the rulemaking provisions of the Administrative Procedure Act, as specified. The bill would repeal these provisions as of June 30, 2017.

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The bill would also authorize the use of moneys in the Housing Rehabilitation Loan Fund, to the extent made available by the Legislature for the purpose of the above-described housing relocation program. This bill would require funds for these purposes that are not encumbered on or before June 30, 2017, to revert to the General Fund. By expanding the authorized use of a continuously appropriated fund, the bill would make an appropriation.

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(19) Existing law authorizes the Director of Housing and Community Development to contract with local public and private nonprofit agencies to provide housing services, including shelter, education, sanitation, and day care services, for migrant agricultural workers, through the development, construction, reconstruction, rehabilitation, or operation of a migrant farm labor center. Existing law requires the department to make the Office of Migrant Services centers available for rent by persons or families experiencing economic hardships as a result of the drought.

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This bill would require the department to additionally make the Office of Migrant Services centers available for rent by persons or families rendered homeless or at risk of becoming homeless as a result of the drought.

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(20) Existing law establishes the California Earthquake Authority, administered by the Insurance Commissioner, and authorizes the authority to transact insurance in this state as necessary to, among other things, create and maintain, in collaboration or jointly with subdivisions and programs of local, state, and federal governments and with other national programs, programs and activities that mitigate seismic risks, for the benefit of homeowners and other property owners. Existing law establishes the Earthquake Loss Mitigation Fund, a subaccount of the California Earthquake Authority Fund, a continuously appropriated fund. Existing law authorizes the authority to apply money in the Earthquake Loss Mitigation Fund to supply grants and loans or loan guarantees to dwelling owners who wish to retrofit their homes to protect against earthquake damage, as specified.

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This bill would recognize the existence of the California Residential Mitigation Program (CRMP), a joint powers authority created in 2012 by agreement between the California Earthquake Authority and the Office of Emergency Services. The bill would require the CRMP to implement a grant program and to give a grant to a qualifying owner of a single-family residential structure to defray the owner’s cost of seismic retrofit work to the structure, as specified. The bill would also require the CRMP to implement a grant program and, on or after July 1, 2017, authorize it to give a grant to a qualifying owner of a residential structure that contains between 2 and 10 dwelling units to defray the owner’s cost of seismic retrofit work to the structure, as specified. This bill would require the governing board of the CRMP, after providing notice and opportunity for public review and comment, to adopt policies and procedures necessary to implement the grant programs, to establish eligibility criteria for participation in the grant programs, and to establish criteria for determining the amount of a grant awarded under the grant programs.

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Existing law, the Personal Income Tax Law and the Corporation Tax Law, provide for various exclusions from gross income in determining tax liability.

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This bill would, for taxable years beginning on or after January 1, 2016, exclude from gross income an amount received as a loan, loan forgiveness, grant, credit, rebate, voucher, or incentive from the California Residential Mitigation Program or the California Earthquake Authority to assist a residential property owner or occupant with expenses or obligations incurred for earthquake loss mitigation, as defined.

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(21) Under existing law, the Occupational Safety and Health Act of 1973, the Division of Occupational Safety and Health investigates complaints that a workplace is not safe, and may issue orders necessary to ensure employee safety. The act requires the division to investigate a complaint as soon as possible, but not later than 3 working days after receipt of a complaint charging a serious violation, as specified, and not later than 14 calendar days after receipt of a complaint charging a nonserious violation. Existing law requires the division to maintain the capability to receive and act upon complaints at all times.

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This bill would require the division to prioritize investigations of reports of accidents involving death or serious injury or illness and complaints that allege a serious violation over investigations of complaints that allege a nonserious violation.

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(22) Existing law requires the Division of Occupational Safety and Health to cause the inspection of all public conveyances, including elevators, dumbwaiters, and escalators, at least once a year. Existing law authorizes the division to fix and collect fees to cover the actual costs of having the inspection performed by a division safety engineer, and the costs related to regulatory development. Existing law requires these fees to be set forth in regulations and to be deposited in the Elevator Safety Account in the General Fund.

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This bill would, for the 2015-16 fiscal year, suspend the fee for the annual and biennial inspection of conveyances on a one-time basis. It would, for the 2016-17 fiscal year and for every fiscal year thereafter, authorize the Director of Industrial Relations, upon concurrence of the Department of Finance to suspend or reduce this fee on a one-time basis in order to reduce the amount of moneys in the Elevator Safety Account. The bill would exempt the suspension or reduction of the fee from the Administrative Procedure Act.

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(23) Existing law generally requires state agencies to obtain at least 3 competitive bids for each contract. Under existing law, this requirement does not apply under certain circumstances, including, among others, when the contract is with another state agency, a local governmental entity, an auxiliary organization of the California State University, an auxiliary organization of a California community college, a foundation organized to support the Board of Governors of the California Community Colleges, or an auxiliary organization of the Student Aid Commission, as provided.

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This bill, until January 1, 2019, would additionally authorize a specified contract between the Office of Planning and Research, the Regents of the University of California, or an auxiliary organization of the California State University to include a subcontract that is not subject to certain competitive bidding requirements, as provided.

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(24) Existing law requires the Franchise Tax Board to collect certain delinquencies related to vehicles, including, but not limited to, registration fees, transfer fees, and parking violation penalties, as though the delinquencies are taxes, as specified.

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This bill would, on or after the effective date of the bill, additionally require the board to collect unpaid tolls, toll evasion penalties, and related administrative or service fees as though they are taxes.

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(25) The Emergency Telephone Users Surcharge Act generally imposes a surcharge on amounts paid by every person in the state for intrastate telephone service to provide revenues sufficient to fund “911” emergency telephone system costs, and requires the Office of Emergency Services to annually determine the surcharge rate. Commencing with the calculation made October 1, 2015, existing law requires the office to compute the charges applicable to the intrastate portion of prepaid mobile telephony services, as provided.

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The Prepaid Mobile Telephony Service Surcharge Collection Act establishes a prepaid MTS surcharge, as defined, based upon a percentage of the sales price of each retail transaction that occurs in this state for prepaid mobile telephony services, as defined, that is imposed in lieu of any charges imposed pursuant to the Emergency Telephone Users Surcharge Act and specified Public Utility Commission surcharges. That act requires the prepaid MTS surcharge to be annually calculated by the State Board of Equalization by November 1 of each year, commencing November 1, 2015, by using the emergency telephone user surcharge rate reported by the office and specified Public Utility Commission surcharges.

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The Emergency Telephone Users Surcharge Act requires the office to notify the board of the emergency telephone user surcharge rate and the emergency telephone user surcharge rate applicable to prepaid mobile telephony services by October 15 of each year.

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This bill would instead require the office to notify the board of the emergency telephone user surcharge rate by October 1.

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(26) The Emergency Telephone Users Surcharge Act requires, immediately upon notification by the office and fixing the surcharge rate, the board to notify by mail every registered service supplier of the new rate.

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This bill would instead require the board to notify every registered service supplier of the new rate by a means, or means determined by the State Board of Equalization, that may include, but is not limited to, mail, electronic mail, or Internet Web site postings.

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(27) The Prepaid Mobile Telephony Service Surcharge Collection Act requires, on and after January 1, 2016, and before January 1, 2020, the prepaid MTS surcharge imposed by that act on a prepaid consumer to be collected by a seller from each prepaid consumer at the time of each retail transaction in this state.

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This bill would, commencing January 1, 2017, exempt a seller, other than a direct seller, with de minimis sales of prepaid mobile telephony services of less than $15,000 during the previous calendar year from collecting the prepaid MTS surcharge, and would require the Department of Finance to annually review and adjust that de minimis sales threshold, as provided.

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(28) The Prepaid Mobile Telephony Service Surcharge Collection Act creates the Prepaid Mobile Telephony Services Surcharge Fund in the State Treasury, and creates the Prepaid MTS 911 Account and the Prepaid MTS PUC Account in that fund. That act requires the portion of the prepaid MTS surcharge that is for the emergency telephone users surcharge, which are remitted to the board, to be deposited into the Prepaid MTS 911 Account, and those deposited moneys to be transferred to the State Emergency Telephone Number Account in the General Fund. That act also requires that portion of the prepaid MTS surcharge that is for the Public Utilities Commission surcharges, which are remitted to the board, to be deposited into the Prepaid MTS PUC Account, and those deposited moneys to be allocated and transferred to the respective universal service funds.

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This bill would specify that amounts transferred to the State Emergency Telephone Number Account are required to be appropriated pursuant to the Emergency Telephone Users Surcharge Act. This bill would require the Public Utilities Commission to allocate the moneys deposited into the Prepaid MTS PUC Account to the respective universal service funds and to the Public Utilities Commission Utilities Reimbursement Account and to report to the Controller on its allocation of those funds, as specified.

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This bill would authorize the Director of Finance to approve a short-term loan in the 2015-16 fiscal year from the General Fund to the Prepaid Mobile Telephony Services Surcharge Fund to provide adequate cashflow for expenses incurred by the board in the administration and collection of the prepaid MTS surcharge.

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(29) The Prepaid Mobile Telephony Service Surcharge Collection Act requires direct sellers to remit the prepaid portion of the prepaid MTS surcharge that is for the emergency telephone users surcharge to the board in accordance with the Emergency Telephone Users Surcharge Act and to remit the portion of the prepaid MTS surcharge that is for the Public Utilities Commission surcharges to the Public Utilities Commission.

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This bill would specify that those remitted amounts to the commission are required to be deposited into the respective universal services funds and the Public Utilities Commission Utilities Reimbursement Account, and that the remitted amounts to the board are required to be deposited into the State Emergency Telephone Number Account.

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(30) The Local Prepaid Mobile Telephony Services Collection Act, on and after January 1, 2016, and before January 1, 2020, suspends the authority of a city, county, or city and county, including any charter city, county, or city and county, to impose a utility user tax on the consumption of prepaid communications service and any charge that applies to prepaid mobile telephony service, on access to communication services or access to local “911” emergency telephone systems, and instead requires those taxes and charges to be applied during that period under any ordinance to be at specified rates. The act requires these local charges imposed by a city, county, or a city and county, on prepaid mobile telephony services to be collected from the prepaid consumer by a seller at the same time and in the same manner as the prepaid MTS surcharge is collected under the Prepaid Mobile Telephony Service Surcharge Collection Act, as specified. Existing law requires all local charges collected to be deposited in the Local Charges for Prepaid Mobile Telephony Services Fund, and transmitted to the city, county, or a city and county, as provided.

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This bill would, commencing January 1, 2017, exempt a seller, other than a direct seller, with de minimis sales of prepaid mobile telephony services of less than $15,000 during the previous calendar year from collecting the local charges, and would require the Department of Finance to annually review and adjust that de minimis sales threshold, as provided.

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This bill would authorize the Director of Finance to approve a short-term loan in the 2015-16 fiscal year from the General Fund to the Local Charges for Prepaid Mobile Telephony Services Fund to provide adequate cashflow for expenses incurred by the board in the administration and collection of the local charges.

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(31) 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 no reimbursement is required by this act for specified reasons.

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(32) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

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This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.

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Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . 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   

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begin insert Section 3273 of the end insert begin insert Civil Code end insert begin insert is amended to
read: end insert

3273.  

(a) It is unlawful for a person, firm, corporation, or
association that is a nongovernmental entity and contracts to
perform public health and safety labor or services for a public
agency to display on a vehicle a logo of the public agency that
reasonably could be interpreted or construed as implying that the
labor or services are being provided by employees of the public
agency, unless the vehicle conspicuously displays a statement
indicating that the contractor is the service provider, contractor,
or other appropriate descriptor, such as “SERVICE PROVIDED
BY:” or “CONTRACTED BY:”, immediately followed by all of
the following:

(1) The logo and the name of the person, firm, corporation, or
association that is the nongovernmental entity providing the public
health and safety labor or services for the public agency.

(2) The state, or if outside of the United States, the country
where the nongovernmental entity’s controlling person, firm,
corporation, or association is legally incorporated, organized, or
formed.

(b) It is unlawful for a person or an employee of a person, firm,
corporation, or association that is a nongovernmental entity and
contracts to perform public health and safety labor or services for
a public agency to wear a uniform bearing a logo of the public
agency that reasonably could be interpreted or construed as
implying that the labor or services are being provided by employees
of the public agency, unless the uniform conspicuously displays
the logo and the name of the person, firm, corporation, or
association that is the nongovernmental entity providing the labor
or services for the public agency.

(c) The disclosures required pursuant to subdivisions (a) and
(b) shall apply to all labor or services provided pursuant to a
contract entered into on or after January 1, 2015.

(d) (1) It is unlawful for a public agency to require, through a
contract with a person, firm, corporation, or association that is a
nongovernmental entity providing public health and safety labor
or services, a person or employee of the nongovernmental entity
to wear a badge containing the logo of the public agency.

(2) It is unlawful for a person, firm, corporation, or association
that is a nongovernmental entity contracting to perform public
health and safety labor or services for a public agency to require
a person or its employee to wear a badge containing the logo of
the public agency.

(e) For the purposes of subdivision (b), an identifying mark
affixed to a uniform as required by state or federal law, and a local
agency regulating the activity of the person, firm, corporation, or
association shall not be construed as implying that the labor or
services are being provided by employees of the public agency.

(f) If a vehicle or uniform displays more than one logo referring
to the public agency, then the required disclosure shall be placed
near the largest logo referring to the public agency.

(g) The disclosure requirements in subdivisions (a) and (b) of
this section shall not apply to uniforms or vehicles if the person,
firm, corporation, or association that is the nongovernmental entity
is providing the labor or services for a public agency under Article
3.3 (commencing with Section 2430) of Chapter 2 of Division 2
of the Vehicle Code.

(h) The disclosure requirements in subdivisions (a) and (b) shall
not apply to a public agency vehicle utilized by the
nongovernmental entity during a declared state or federal disaster,
mass-casualty incident, or other incident that requires the use of
state or federal resources when the public agency requires the use
of the public agency vehicle.

(i) (1) Violations of this section shall be subject to the remedies
provided in the Consumers Legal Remedies Act (Title 1.5
(commencing with Section 1750)).

(2) The duties, rights, and remedies provided in this section are
in addition to any other duties, rights, and remedies provided by
state law.

(j) For the purposes of this section, the following terms have
the following meanings:

(1) “Conspicuously displays” means to display a disclosure on
the exterior of a vehicle or uniform in the same location as the
logo of the public agency, placed prominently as compared with
other words, statements, or designs displayed in connection with
the logo of the public agency. With respect to a uniform, “in the
same location” includes, but is not limited to, a location on the
opposing shoulder, pocket, or similar opposing location relative
to the location of the logo of the public agency.

(2) “Logo” means a symbol, graphic, seal, emblem, insignia,
trade name, brand name, or picture identifying a person, firm,
corporation, association, or public agency. “Logo” shall not mean
the name of a public agency used alone.

(3) “Public agency” means a state entity, a city, county, city
and county, special district, or other political subdivision of the
state.

(4) “Public health and safety labor or services” means fire
protection services, rescue services, begin insert prehospital end insert emergency medical
services, hazardous material emergency response services, and
ambulance services.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 4061 of the end insert begin insert Food and Agricultural Code end insert begin insert is
amended to read: end insert

4061.  

(a) Notwithstanding any other law, a district agricultural
association shall not be required to prepare or submit any written
report to the Governor, the Legislature, or a state agency except
as follows:

(1) The report is required by a court or under federal law.

(2) The report is required in the Budget Act.

(3) The report is required by the secretary.

(4) The Legislature expressly requires a district agricultural
association to prepare and submit a report.

begin insert

(5) The annual reporting of real property information required
pursuant to Section 11011.15 of the Government Code.

end insert

(b) This section shall not be construed and is not intended to
extend or limit the provisions of the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of
Title 1 of the Government Code).

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 905.2 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

905.2.  

(a) This section shall apply to claims against the state
filed with the California Victim Compensation and Government
Claims Board.

(b) There shall be presented in accordance with this chapter and
Chapter 2 (commencing with Section 910) all claims for money
or damages against the state:

(1) For which no appropriation has been made or for which no
fund is available but the settlement of which has been provided
for by statute or constitutional provision.

(2) For which the appropriation made or fund designated is
exhausted.

(3) For money or damages on express contract, or for an injury
for which the state is liable.

(4) For which settlement is not otherwise provided for by statute
or constitutional provision.

(c) Claimants shall pay a filing fee of twenty-five dollars ($25)
for filing a claim described in subdivision (b). This fee shall be
deposited into the General Fund and may be appropriated in support
of the board as reimbursements to Item begin delete 1870-001-0001 end delete
begin insert 7870-001-0001 end insert of Section 2.00 of the annual Budget Act.

(1) The fee shall not apply to the following persons:

(A) Persons who are receiving benefits pursuant to the
Supplemental Security Income (SSI) and State Supplementary
Payment (SSP) programs (Article 5 (commencing with Section
12200) of Chapter 3 of Part 3 of Division 9 of the Welfare and
Institutions Code), the California Work Opportunity and
Responsibility to Kids Act (CalWORKs) program (Chapter 2
(commencing with Section 11200) of Part 3 of Division 9 of the
Welfare and Institutions Code), the federal Supplemental Nutrition
Assistance Program (SNAP; 7 U.S.C. Sec. 2011 et seq.), or Section
17000 of the Welfare and Institutions Code.

(B) Persons whose monthly income is 125 percent or less of the
current monthly poverty line annually established by the Secretary
of California Health and Human Services pursuant to the federal
Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35),
as amended.

(C) Persons who are sentenced to imprisonment in a state prison
or confined in a county jail, or who are residents in a state
institution and, within 90 days prior to the date the claim is filed,
have a balance of one hundred dollars ($100) or less credited to
the inmate’s or resident’s trust account. A certified copy of the
statement of the account shall be submitted.

(2) Any claimant who requests a fee waiver shall attach to the
application a signed affidavit requesting the waiver and verification
of benefits or income and any other required financial information
in support of the request for the waiver.

(3) Notwithstanding any other law, an applicant shall not be
entitled to a hearing regarding the denial of a request for a fee
waiver.

(d) The time for the board to determine the sufficiency,
timeliness, or any other aspect of the claim shall begin when any
of the following occur:

(1) The claim is submitted with the filing fee.

(2) The fee waiver is granted.

(3) The filing fee is paid to the board upon the board’s denial
of the fee waiver request, so long as payment is received within
10 calendar days of the mailing of the notice of the denial.

(e) Upon approval of the claim by the board, the fee shall be
reimbursed to the claimant, except that no fee shall be reimbursed
if the approved claim was for the payment of an expired warrant.
Reimbursement of the filing fee shall be paid by the state entity
against which the approved claim was filed. If the claimant was
granted a fee waiver pursuant to this section, the amount of the
fee shall be paid by the state entity to the board. The reimbursement
to the claimant or the payment to the board shall be made at the
time the claim is paid by the state entity, or shall be added to the
amount appropriated for the claim in an equity claims bill.

(f) The board may assess a surcharge to the state entity against
which the approved claim was filed in an amount not to exceed
15 percent of the total approved claim. The board shall not include
the refunded filing fee in the surcharge calculation. This surcharge
shall be deposited into the General Fund and may be appropriated
in support of the board as reimbursements to Item begin delete 1870-001-0001 end delete
begin insert 7870-001-0001 end insert of Section 2.00 of the annual Budget Act.

(1) The surcharge shall not apply to approved claims to reissue
expired warrants.

(2) Upon the request of the board in a form prescribed by the
Controller, the Controller shall transfer the surcharges and fees
from the state entity’s appropriation to the appropriation for the
support of the board. However, the board shall not request an
amount that shall be submitted for legislative approval pursuant
to Section 13928.

(g) The filing fee required by subdivision (c) shall apply to all
claims filed after June 30, 2004, or the effective date of this statute.
The surcharge authorized by subdivision (f) may be calculated and
included in claims paid after June 30, 2004, or the effective date
of the statute adding this subdivision.

(h) This section shall not apply to claims made for a violation
of the California Whistleblower Protection Act (Article 3
(commencing with Section 8547) of Chapter 6.5 of Division 1 of
Title 2).

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 4467 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

4467.  

(a) On and after January 1, 2013, and until December
31, 2018, any applicant for a local business license or equivalent
instrument or permit, and from any applicant for the renewal of a
business license or equivalent instrument or permit, shall pay an
additional fee of one dollar ($1) for that license, instrument, or
permit, which shall be collected by the city, county, or city and
county that issued the license, instrument, or permit.

(b) The city, county, or city and county shall retain 70 percent
of the fees collected under this section, of which up to 5 percent
of the retained moneys may be used for related administrative costs
of this chapter. The remaining moneys shall be used to fund
increased certified access specialist (CASp) services in that
jurisdiction for the public and to facilitate compliance with
construction-related accessibility requirements. The highest priority
shall be given to the training and retention of certified access
specialists to meet the needs of the public in the jurisdiction as
provided in Section 55.53 of the Civil Code.

(c) The remaining 30 percent of all fees collected under this
section shall be transmitted on a quarterly basis to the Division of
the State Architect for deposit in the Disability Access and
Education Revolving Fund established under Sections 4465 and
4470. The funds shall be transmitted within 15 days of the last day
of the fiscal quarter. The Division of the State Architect shall
develop and post on its Internet Web site a standard reporting form
for use by all local jurisdictions. Up to 75 percent of the collected
funds in the Disability Access and Education Revolving Fund shall
be used to establish and maintain oversight of the CASp program
and to moderate the expense of CASp certification and testing.

(d) Each city, county, or city and county shall make an annual
report, commencing March 1, 2014, to the begin delete Legislature and to the
Chairs of the Senate and Assembly Committees on Judiciary, and
the Chair of the Senate Committee on Budget and Fiscal Review
and the Chair of the Assembly Committee on Budget, end delete begin insert Division of
the State Architect end insert of the total fees collected in the previous
calendar year and of its distribution, including the moneys spent
on administrative services, the begin insert activities undertaken and end insert moneys
spent to increase CASp services, the begin insert activities undertaken and end insert
moneys spent to fund programs to facilitate begin insert accessibility end insert
compliance, and the moneys transmitted to the Disability Access
and Education Revolving Fund. begin delete A report to be submitted pursuant
to this subdivision shall be submitted in compliance with Section
9795. end delete

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 4470 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

4470.  

(a) All funds received by the Division of the State
Architect under this chapter shall be deposited in the Disability
Access and Education Revolving Fund, which is hereby established
in the State Treasury.

(b) Notwithstanding Section 13340, moneys deposited in the
fund are hereby continuously appropriated without regard to fiscal
years to the Division of the State Architect for purposes of this
chapter.

(c) Notwithstanding Section 10231.5, the State Architect shall
make an annual report, commencing begin delete March end delete begin insert April end insert 1, 2014, to the
Legislature and to the Chairs of the Senate and Assembly
Committees on Judiciary, and the Chair of the Senate Committee
on Budget and Fiscal Review and the Chair of the Assembly
Committee on begin delete Budget, end delete begin insert Budget end insert of begin insert the total fees collected by each
city, county, or city and county pursuant to Section 4467, end insert the total
fees transmitted to the fund in the previous calendar year and of
its distribution, including the moneys spent on administrative
services, the moneys spent to moderate certification and
examination fees for the certified access specialist program, the
moneys spent on establishing and maintaining oversight of the
certified access specialist program, and the moneys spent on
developing and disseminating educational materials to facilitate
compliance. A report to be submitted pursuant to this begin delete subdivision, end delete
begin insert subdivision end insert shall be submitted in compliance with Section 9795.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Article 3.9 (commencing with Section 8574.30) is added
to Chapter 7 of Division 1 of Title 2 of the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

 

Article begin insert 3.9. end insert   Regional Railroad Accident Preparedness and
Immediate Response

 

begin insert 8574.30. end insert   

For purposes of this article, the following terms have
the following meanings:

(a) “Board” means the State Board of Equalization.

(b) “Director” means the Director of Emergency Services.

(c) “Fund” means the Regional Railroad Accident Preparedness
and Immediate Response Fund established pursuant to Section
8574.44.

(d) “Hazardous material” means a material that the United
States Department of Transportation has designated as a hazardous
material for purposes of transportation in Part 172 of Title 49 of
the Code of Federal Regulations.

(e) “Office” means the Office of Emergency Services.

(f) “Owner” means the person who has the ultimate control
over, and the right to use or sell, the hazardous material being
shipped. There is a rebuttable presumption that the shipper,
consignor, or consignee of the hazardous material is the owner of
the hazardous material. This presumption may be overcome by
showing that ownership of the hazardous material rests with
someone other than the shipper, consignor, or consignee. Evidence
to rebut the presumption may include, but is not limited to,
documentation, including a bill of lading, shipping document, bill
of sale, or other medium, that shows the ownership of the
hazardous material rests in a person other than the shipper,
consignor, or consignee.

(g) “Person” means an individual, trust, firm, joint stock
company, other entity, or corporation, including, but not limited
to, a government corporation, partnership, limited liability
company, or association. “Person” also includes any city, county,
city and county, district, commission, the state or any department,
agency, or political subdivision thereof, and the United States and
agencies and instrumentalities, to the extent permitted by law.

(h) “Railroad” has the same meaning as defined in Section 229
of the Public Utilities Code.

(i) “Rail car” means a loaded or unloaded railroad car or
rolling stock designated to transport hazardous material
commodities, and includes, but is not limited to, those railroad
cars subject to the requirements of Part 179 (commencing with
Section 179.1) of Title 49 of the Code of Federal Regulations, or
successor regulations adopted by the United States Department
of Transportation.

begin insert 8574.32. end insert   

(a) (1) The director shall establish a schedule of
fees, to be paid by each person owning any of the 25 most
hazardous material commodities, as identified in regulations
adopted by the office, that are transported by rail in California,
that shall be sufficient to fund the appropriation from the fund
pursuant to Section 8574.44, to reimburse the California High-Cost
Fund-B Administrative Committee Fund for any moneys loaned,
and to maintain a reserve for operating costs. The fee shall be
based on each loaded rail car as described in subdivision (b).

(2) Prior to the adoption of regulations identifying the 25 most
hazardous material commodities, the fee shall apply to the top 25
hazardous material commodities identified by the Association of
American Railroads Bureau of Explosives’ Annual Report of
Non-Accident Releases of Hazardous Materials Transported by
Rail, published in August, 2013.

(b) (1) Within six months of the director establishing a schedule
of fees pursuant to subdivision (a), the fee shall be imposed on a
person owning hazardous material at the time that hazardous
material is transported by loaded rail car. The fee shall be based
on each loaded rail car.

(A) If the loaded rail car enters the state from outside this state,
the fee shall be imposed on the owner of the hazardous material
at the time the loaded rail car enters this state. The person
operating the train containing the rail car shall collect the fee
from the owner of the hazardous material and shall pay the fee to
the board. The fee shall be collected consistent with the
requirements of the commerce clause of the United States
Constitution.

(B) If the rail car is loaded within this state, the fee shall be
imposed upon the loading of hazardous material into or onto the
rail car for transport in or through this state. The person operating
the train containing the rail car shall collect the fee from the owner
of the hazardous material at the time the rail car is loaded and
shall pay the fee to the board. The fee shall be collected consistent
with the requirements of the commerce clause of the United States
Constitution.

(2) The fee shall be paid to the board by the person operating
the train containing the rail car at the time the return is required
to be filed, as specified in Section 8574.38, based on the number
of loaded hazardous material rail cars transported within the state.

(3) Any fee collected from an owner of hazardous materials
pursuant to this section that has not been remitted to the board
shall be deemed a debt owed to the state by the person required
to collect and remit the fee.

(4) (A) The owner of the hazardous material is liable for the
fee until it has been paid to the board, except that payment to a
person operating the train containing the rail car registered under
this article is sufficient to relieve the owner from further liability
for the fee.

(B) The railroad shall be entitled to collect an amount not to
exceed 5 percent of the fee collected pursuant to this section to
offset the administrative cost to collect the fee.

(5) Any owner or railroad that has paid the fee pursuant to this
section shall not be assessed any additional fee under this section
for further transporting the same hazardous materials in the same
rail cars on a different railroad within the state.

(c) The fee shall be fair, as required by subsection (f) of Section
5125 of Title 49 of the United States Code and subsection (c) of
Section 107.202 of Title 49 of the Code of Federal Regulations. It
is the intent of the Legislature that: (1) the fee shall reflect the cost
of preparations to respond to the release of hazardous materials
from a rail car or a railroad accident involving a rail car, (2) these
preparations shall help contain the damage to railroad systems
and operations within the state caused by the release of hazardous
materials and better enable owners of hazardous materials to
expeditiously transport their materials using the railroad after the
release of hazardous materials, and (3) these preparations shall
mitigate the exposure of the owners of hazardous materials to
compensable damages caused by the release of hazardous
materials. The director may exempt from the fee those shipments
of hazardous materials that do not merit inclusion in the state
regional railroad accident preparedness and immediate response
plan developed pursuant to Section 8574.48, and those shipments
of hazardous materials that do not merit additional governmental
preparation to respond to their release in the event of a railroad
accident.

(d) The fee shall not result in the collection of moneys that
exceed the reasonable regulatory costs to the state for the purposes
specified in subdivision (e) of Section 8574.44. The director shall
set the fee consistent with Section 3 of Article XIII A of the
California Constitution.

(e) The director shall be responsible for reporting fee
information to the federal Secretary of Transportation pursuant
to paragraph (2) of subsection (f) of Section 5125 of Title 49 of
the United States Code.

(f) The director may authorize payment of a portion, but not the
entire amount, of fees owed through contributions in kind of
equipment, materials, or services.

(g) The director shall create an industry advisory committee to
advise the director on setting the fee and on other policy matters
related to industry-based shipment of hazardous materials and
private sector-based accident response. The committee shall consist
of representatives from the following:

(1) Hazardous materials specialist from the railroad industry.

(2) Operation specialist from the railroad industry.

(3) Fire and safety specialist from refinery industry.

(4) Chemical hazardous materials specialists.

(5) Agricultural chemical industry.

(6) Firefighting Resources of California Organized for Potential
Emergencies (FIRESCOPE).

(7) Local emergency preparedness commissions (LEPCs).

(8) California Fire Chiefs Association.

(9) California Professional Firefighters.

(10) California State Firefighters Association.

(11) California Emergency Services Association.

(12) Fire Districts Association of California.

(13) The public.

(h) (1) The director shall reconsider the amount of the fee, and
adjust the fee if appropriate, not less frequently than every three
years, with due consideration for existing and expected operational
and continued resource requirements.

(2) The director shall conduct an analysis of industry
capabilities and resource requirements to assist in the
reconsideration of the amount of the established fee. The director
may arrange for the analysis to be performed by a third party that
is either a public or private entity. Upon finalization of the analysis,
the analysis shall be delivered as a report to the Department of
Finance, the Legislature, and the Legislative Analyst’s Office.

(3) The submission of the analysis to the Legislature shall be
submitted in compliance with Section 9795 of the Government
Code.

begin insert 8574.34. end insert   

Every person who operates a railroad that transports
hazardous materials by rail car shall register with the board
pursuant to Section 55021 of the Revenue and Taxation Code.

begin insert 8574.36. end insert   

The fee imposed pursuant to Section 8574.32 shall
be administered and collected by the board in accordance with
the Fee Collection Procedures Law (Part 30 (commencing with
Section 55001) of Division 2 of the Revenue and Taxation Code).
For purposes of this section, the references in the Fee Collection
Procedures Law to “fee” shall include the fee imposed by this
article, and references to “feepayer” shall include a person
required to pay the fee imposed by this article.

begin insert 8574.38. end insert   

The return required to be filed pursuant to Section
55040 of the Revenue and Taxation Code shall be prepared and
filed by the person required to register with the board, in the form
prescribed by the board, and shall contain that information the
board deems necessary or appropriate for the proper
administration of this article and the Fee Collection Procedures
Law. The return shall be filed on or before the last day of the
calendar month following the calendar quarter to which it relates,
together with a remittance payable to the board for the fee amount
due for that period. Returns shall be authenticated in a form, or
pursuant to methods, as may be prescribed by the board.

begin insert 8574.40. end insert   

Notwithstanding the petition for redetermination and
claim for refund provisions of the Fee Collection Procedures Law
(Article 3 (commencing with Section 55081) of Chapter 3 of, and
Article 1 (commencing with Section 55221) of Chapter 5 of, Part
30 of Division 2 of the Revenue and Taxation Code), the board
shall not:

(a) Accept or consider a petition for redetermination of fees
determined under this article if the petition is founded upon the
grounds that the rail car content is or is not a hazardous material.
The board shall forward to the director any appeal of a
determination that is based on the grounds that the rail car content
is or is not a hazardous material.

(b) Accept or consider a claim for refund of fees paid pursuant
to this chapter if the claim is founded upon the grounds that the
rail car content is or is not a hazardous material. The board shall
forward to the director any claim for refund that is based on the
grounds that the rail car content is or is not a hazardous material.

begin insert 8574.42. end insert   

(a) The board may prescribe, adopt, and enforce
regulations relating to the administration and enforcement of this
article.

(b) The board may prescribe, adopt, and enforce any emergency
regulations, as necessary, to implement this article. Except as
provided in Section 8574.44, any emergency regulation prescribed,
adopted, or enforced pursuant to this article shall be adopted
pursuant to Chapter 3.5 (commencing with Section 11340) of Part
1 of Division 3 of Title 2 and, for purposes of that article, including
Section 11349.6, the adoption of the regulation is an emergency
and shall be considered by the Office of Administrative Law as
necessary for the immediate preservation of the public peace,
health and safety, and general welfare.

begin insert 8574.44. end insert   

(a) The Regional Railroad Accident Preparedness
and Immediate Response Fund is hereby created in the State
Treasury.

(b) All revenues, interest, penalties, and other amounts collected
pursuant to this article shall be deposited into the fund, less refunds
and reimbursement to the board for expenses incurred in the
administration and collection of the fee.

(c) The adoption of regulations pursuant to this section shall
be considered by the Office of Administrative Law as an emergency
and necessary for the immediate preservation of the public peace,
health and safety, and general welfare. Notwithstanding Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of
Title 2, emergency regulations adopted by the director and the
board pursuant to this section shall be filed with, but not repealed
by, the Office of Administrative Law and shall remain in effect
until revised or repealed by the director.

(d) The fund shall be used to reimburse the California High-Cost
Fund-B Administrative Committee Fund for any moneys loaned
from the California High-Cost Fund-B Administrative Committee
Fund to the fund to pay for the Office of Emergency Service’s
administrative costs associated with implementation of the fee
pursuant to this article.

(e) All moneys remaining in the fund after reimbursement of
the California High-Cost Fund-B Administrative Committee Fund
pursuant to subdivision (d) shall, upon appropriation by the
Legislature, be used by the director to pay for the following
purposes related to the transportation of hazardous materials:

(1) Planning, developing, and maintaining a capability for
large-scale hazardous materials releases emergency response
relating to railroad accidents involving rail cars carrying
hazardous materials, including the risks of explosions and fires.

(2) Planning, developing, and maintaining a capability for
large-scale hazardous materials releases emergency response
relating to releases of hazardous materials from rail cars, including
reducing the harmful effects of exposure of those materials to
humans and the environment.

(3) Creation, support, maintenance, and implementation of the
Regional Railroad Accident Preparedness and Immediate Response
Force created by Section 8574.48.

(4) Acquisition and maintenance of specialized equipment and
supplies used to respond to a hazardous materials release from a
rail car or a railroad accident involving a rail car.

(5) Support of specialized regional training facilities to prepare
for and respond to a hazardous materials release from a rail car
or a railroad accident involving a rail car.

(6) Creation and support of a regional, state level, and local
emergency response team to provide immediate onsite response
capabilities in the event of large-scale releases of hazardous
materials from a rail car or a railroad accident involving a rail
car.

(7) Support for specialized training for state and local
emergency response officials in techniques for prevention of, and
response to, release of hazardous materials from a rail car or a
railroad accident involving a rail car.

(f) For each of the 2015-2016 and 2016-2017 fiscal years, the
amount available for appropriation from the fund shall not exceed
twenty million dollars ($20,000,000). For the 2017-18 fiscal year
and each fiscal year thereafter, the amount available for
appropriation from the fund shall not exceed ten million dollars
($10,000,000).

(g) (1) For the 2016 calendar year, the director shall have the
authority to collect an amount not to exceed twenty million dollars
($20,000,000) for deposit into the fund, which shall be used, upon
appropriation by the Legislature, for repayment of loans provided
from the California High Cost Fund B Administrative Committee
and for purposes related to the transportation of hazardous
materials by rail cars pursuant to subdivision (e).

(2) For the calendar year 2017, the director shall have the
authority to collect an amount not to exceed twenty million dollars
for deposit into the fund, which shall be used, upon appropriation
by the Legislature, for purposes related to the transportation of
hazardous materials by rail cars pursuant to subdivision (e).

(3) (A) Commencing on January 1, 2018, and following an
initial review of the amount of the fee by the industry advisory
committee established pursuant to subdivision (g) of Section
8574.32 and an initial reconsideration of the amount of the fee by
the director pursuant to paragraph (1) of subdivision (h) of Section
8574.32, the director shall have the authority to collect an amount
not to exceed ten million dollars ($10,000,000) annually for deposit
into the fund.

(B) For calendar years subsequent to the 2018 calendar year,
the director shall reconsider the amount of the fee pursuant to
paragraph (1) of subdivision (h) of Section 8574.32.

(h) The board shall inform the director if the amount of fees
collected reaches the amount specified in subdivision (g) in each
calendar year.

(i) Reimbursement to the state for equipment funded by moneys
in the fund that are used for emergency response activities
unrelated to regional railroad accident preparedness and
immediate response as described in this article shall be made
pursuant to the state fire service and rescue emergency mutual
aid plan adopted pursuant to Section 8619.5 and deposited into
the fund.

begin insert 8574.46. end insert   

(a) (1) The director shall contract with the
Department of Finance for the preparation of a detailed report on
the financial basis and programmatic effectiveness of the regional
railroad accident preparedness and immediate response plan and
the Regional Railroad Accident Preparedness and Immediate
Response Fund.

(2) The report shall include an analysis of the fund’s major
expenditures, fees, interest, and penalties collected, staffing and
equipment levels, moneys used for coordinated training and
response under the emergency mutual aid plan, spills responded
to, and other relevant issues.

(3) The report shall recommend measures to improve the
efficiency and effectiveness of the program and fund, including,
but not limited to, ensuring fair and equitable funding from the
fees and measures to modify or improve the implementation of the
regional railroad accident preparedness and immediate response
plan for release of hazardous materials from a rail car or a
railroad accident involving a rail car.

(b) (1) On or before January 1, 2019, and every three years
thereafter, the director shall submit the report to the Governor
and the Legislature.

(2) The report submitted to the Legislature shall be submitted
in compliance with Section 9795.

begin insert 8574.48. end insert   

(a) The Regional Railroad Accident Preparedness
and Immediate Response Force is hereby created in the Office of
Emergency Services. The force shall be responsible for providing
regional and onsite response and mitigation capabilities in the
event of a release of hazardous materials from a rail car or a
railroad accident involving a rail car and for implementing the
state regional railroad accident preparedness and immediate
response plan for releases of hazardous materials from a rail car
or a railroad accident involving a rail car. The force shall act
cooperatively and in concert with existing local emergency
response units pursuant to Article 9.5 (commencing with Section
8607). The force shall be established and operate as outlined in,
and as a component of, the state fire service and rescue mutual
aid plan adopted pursuant to Section 8619.5. The force shall
consist of representatives of all of the following:

(1) Department of Fish and Wildlife.

(2) California Environmental Protection Agency.

(3) State Air Resources Board.

(4) Department of Resources Recycling and Recovery.

(5) California regional water quality control boards.

(6) Department of Toxic Substances Control.

(7) Department of Pesticide Regulation.

(8) Office of Environmental Health Hazard Assessment.

(9) State Department of Public Health.

(10) Department of the California Highway Patrol.

(11) Department of Food and Agriculture.

(12) Department of Forestry and Fire Protection.

(13) Department of Parks and Recreation.

(14) Public Utilities Commission.

(15) State Fire Marshal.

(16) Emergency Medical Services Authority.

(17) California National Guard.

(18) Any other potentially affected or participating state, local,
or federal agency, as determined by the director.

(b) (1) The Office of Emergency Services, in cooperation with
all of the entities listed in paragraphs (1) to (18), inclusive, of
subdivision (a), shall develop a state regional railroad accident
preparedness and immediate response plan that operates in
coordination with the state fire service and rescue emergency
mutual aid plan.

(2) The state regional railroad accident preparedness and
immediate response plan shall be an annex to the State Emergency
Plan.

(c) (1) The Legislature finds and declares that the state has a
comprehensive program through the Office of Spill Prevention
and Response to prevent and prepare for the risk of a significant
discharge of petroleum into state waters, including a discharge
caused by the transportation of petroleum by rail. The Legislature
further finds and declares that the Regional Accident Preparedness
and Immediate Response Force is focused on the emergency
response for railroad accidents and rail car discharges involving
all designated hazardous materials regardless of where the
accident or discharge takes place.

(2) The Regional Accident Preparedness and Immediate
Response Force and Office of Spill Prevention and Response shall
coordinate in their respective authorities and responsibilities
pursuant to Article 9.5 (commencing with Section 8607), to avoid
any duplication of effort, ensure cooperation, and promote the
sharing of information regarding the risk of discharge of petroleum
by rail into state waters.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Article 5.9 (commencing with Section 8590.6) is added
to Chapter 7 of Division 1 of Title 2 of the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

 

Article begin insert 5.9. end insert   Human Trafficking Victims Assistance

 

begin insert 8590.6. end insert   

For the purposes of this article:

(a) “Comprehensive services” means primary services that
include all of the following:

(1) Shelter or established referral services for shelter on a 24
hours a day, seven days a week, basis.

(2) A 24 hours a day, seven days a week, telephone hotline for
crisis calls.

(3) Temporary housing and food facilities.

(4) Psychological support and peer counseling provided in
accordance with Section 1038.2 of the Evidence Code.

(5) Referrals to existing services in the community.

(6) Emergency transportation, as feasible.

(b) “Director” means the Director of the Office of Emergency
Services.

(c) “Fund” means the Human Trafficking Victims Assistance
Fund.

(d) “Human trafficking caseworker” means a human trafficking
caseworker as defined in Section 1038.2 of the Evidence Code.

(e) “Office” means the Office of Emergency Services.

(f) “Qualified nonprofit organization” means a
nongovernmental, nonprofit organization that does both of the
following:

(1) Employs a minimum of one individual who is a human
trafficking caseworker.

(2) Provides services to victims of human trafficking, including,
but not limited to, housing assistance, counseling services, and
social services to victims of human trafficking.

(g) “Victim of human trafficking” means any person who is a
trafficking victim as described in Section 236.1 of the Penal Code
and satisfies either of the following conditions:

(1) Was trafficked in the state.

(2) Fled his or her trafficker to the state.

begin insert 8590.7. end insert   

(a) There is hereby created in the State Treasury the
Human Trafficking Victims Assistance Fund. Moneys in the fund,
including any interest earned, shall only be expended to support
programs for victims of human trafficking pursuant to the
requirements of this article and for reimbursement of costs incurred
by the office in connection with its duties under this section. Of
the amounts appropriated to the fund, no more than 5 percent shall
be applied for reimbursement of costs incurred by the office in
connection with its duties

(b) The office shall do all of the following:

(1) Be responsible for overseeing the grant program.

(2) Award grants based on the following:

(A) The capability of the qualified nonprofit organization to
provide comprehensive services.

(B) The stated goals and objectives of the qualified nonprofit
organization.

(C) The number of people to be served and the needs of the
community.

(D) Evidence of community support.

(E) Other criteria the office deems appropriate that is consistent
with the requirements of this paragraph.

(3) Publish deadlines and written procedures for qualified
nonprofit organizations to apply for the grants.

end insert

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 8600 of the end insert begin insert Government Code end insert begin insert is amended to
read: end insert

8600.  

begin insert (a) end insert begin insert   end insert The Governor with the advice of the Office of
Emergency Services is hereby authorized and empowered to divide
the state into mutual aid regions for the more effective application,
administration, and coordination of mutual aid and other
emergency-related activities.

begin insert

(b) The Office of Emergency Services shall coordinate response
and recovery operations in each of the mutual aid regions.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 8619.5 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 8619.5. end insert   

(a) The Office of Emergency Services, in consultation
with relevant local and state agencies, shall develop and adopt a
state fire service and rescue emergency mutual aid plan that does
all of the following:

(1) Provides a systematic mobilization, organization, and
operation of necessary fire, rescue, and hazardous material
resources of the state in mitigating the effects of disasters.

(2) Provides comprehensive and compatible plans for the
expedient mobilization and response of available fire, rescue, and
hazardous materials resources on a local, area, regional, and
statewide basis.

(3) Establishes guidelines for recruiting and training auxiliary
personnel to augment fire, rescue, and hazardous materials
personnel during disaster operations.

(4) Provides for an annually updated fire, rescue, and hazardous
materials response inventory of all personnel and equipment in
California.

(5) Provides for the interchange and dissemination of fire,
rescue, and hazardous materials-related data, directives, and
information among fire and rescue officials of local, state, and
federal agencies.

(6) Promotes annual training or exercises, or both training and
exercises, among plan participants.

(b) The state fire service and rescue emergency mutual aid plan
shall be an annex to the State Emergency Plan.

(c) The State Emergency Plan and the state fire service and
rescue mutual aid plan shall be operated pursuant to Article 9.5
(commencing with Section 8607).

end insert

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 11011.1 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

11011.1.  

(a) Notwithstanding any other provision of law,
except Article 8.5 (commencing with Section 54235) of Chapter
5 of Part 1 of Division 2 of Title 5, the disposal of surplus state
real property by the Department of General Services shall be
subject to the requirements of this section. For purposes of this
section, “surplus state real property” means real property declared
surplus by the Legislature and directed to be disposed of by the
Department of General Services, including any real property
previously declared surplus by the Legislature but not yet disposed
of by the Department of General Services prior to the enactment
of this section.

(b) (1) The department may dispose of surplus state real
property by sale, lease, exchange, a sale combined with an
exchange, or other manner of disposition of property, as authorized
by the Legislature, upon any terms and conditions and subject to
any reservations and exceptions the department deems to be in the
best interests of the state.

(2) (A) The Legislature finds and declares that the provision
of decent housing for all Californians is a state goal of the highest
priority. The disposal of surplus state real property is a direct and
substantial public purpose of statewide concern and will serve an
important public purpose, including mitigating the environmental
effects of state activities. Therefore, it is the intent of the
Legislature that priority be given, as specified in this section, to
the disposal of surplus state real property to housing for persons
and families of low or moderate income, where land is suitable
for housing and there is a need for housing in the community.

(B) Surplus state real property that has been determined by the
department not to be needed by any state agency shall be offered
to any local agency, as defined in subdivision (a) of Section 54221,
and then to nonprofit affordable housing sponsors, prior to being
offered for sale to private entities or individuals. As used in this
subdivision, “nonprofit affordable housing sponsor” means any
of the following:

(i) A nonprofit corporation incorporated pursuant to Division
2 (commencing with Section 5000) of Title 1 of the Corporations
Code.

(ii) A cooperative housing corporation which is a stock
cooperative, as defined by Section 11003.2 of the Business and
Professions Code.

(iii) A limited-dividend housing corporation.

(C) The department, subject to this section, shall maintain a list
of surplus state real property in a conspicuous place on its Internet
Web site. The department shall provide local agencies and, upon
request, members of the public, with electronic notification of
updates to the list of properties.

(D) To be considered as a potential priority buyer of the surplus
state real property, a local agency or nonprofit affordable housing
sponsor shall notify the department of its interest in the surplus
state real property within 90 days of the department posting on its
Internet Web site the notice of the availability of the surplus state
real property. The local agency or nonprofit affordable housing
sponsor shall demonstrate, to the satisfaction of the department,
that the surplus state real property, or portion of that surplus state
real property, is to be used by the local agency or nonprofit
affordable housing sponsor for open space, public parks, affordable
housing projects, or development of local government-owned
facilities. When more than one local agency expresses an interest
in the surplus state real property, priority shall be given to the local
agency that intends to use the surplus state real property for
affordable housing. If no agreement or transfer of title occurs, the
priority shall next be given to the local agency that intends to use
the surplus state real property for open space, public parks, or
development of local government-owned facilities. The sales
agreement shall be executed by the local agency or nonprofit
affordable housing sponsor within 60 days after the director
determines the local agency or nonprofit affordable housing
sponsor is to receive the surplus state real property. The sale of
the surplus state real property to a local agency or nonprofit
affordable housing sponsor pursuant to this section shall be
completed, and title transferred, within 60 days of the date the
department executes the sales agreement, or, if required by law,
no later than 60 days after the State Public Works Board has
authorized the sale. If the sale of a surplus state real property to a
local agency or nonprofit affordable housing sponsor is not
completed within the timeframe specified in this subparagraph,
then the department shall proceed with the process for disposal to
other private entities or individuals. begin insert If no local agency or nonprofit
affordable housing sponsor informs the department of its interest
in acquiring the property within 90 days of the department posting
on its Internet Web site the notice of the availability of the surplus
state real property, the department shall notify the chairpersons
of the fiscal committees of the Legislature within 30 days of the
expiration of the initial 90-day timeframe. end insert

(c) (1) If more than one local agency desires the surplus state
real property for use as an open space, a public park, or the
development of a local government-owned facility, the department
shall transfer the surplus state real property to the local agency
offering the highest price above fair market value. If more than
one local agency desires the surplus state real property for use as
an affordable housing project, the department shall transfer the
surplus state real property to the local agency offering the greatest
number of affordable housing units. If more than one nonprofit
affordable housing sponsor desires the surplus state real property
for use as an affordable housing project, the department shall
transfer the surplus state real property to the nonprofit affordable
housing sponsor offering the greatest number of affordable housing
units.

(2) If no local agency or nonprofit affordable housing sponsor
is interested, or an agreement, as provided above, is not reached,
then the disposal of the surplus state real property to private entities
or individuals shall be pursuant to a public bidding process
designed to obtain the highest most certain return for the state from
a responsible bidder, and any transaction based on such a bidding
process shall be deemed to be the fair market value for the purposes
of the reporting requirements pursuant to subdivision (d).

(3) Notwithstanding any other provision of law, the department
may sell surplus state real property, or a portion of surplus state
real property, to a local agency, or to a nonprofit affordable housing
sponsor if no local agency is interested in the surplus state real
property, for affordable housing projects at a sales price less than
fair market value if the department determines that such a discount
will enable the provision of housing for persons and families of
low or moderate income. Nothing shall preclude a local agency
that purchases the surplus state real property for affordable housing
from reconveying the surplus state real property to a nonprofit
affordable housing sponsor for development of affordable housing.
Transfer of title to the surplus state real property or lease of the
surplus state real property for affordable housing shall be
conditioned upon continued use of the surplus state real property
as housing for persons and families of low and moderate income
for at least 40 years and the department shall record a regulatory
agreement that imposes affordability covenants, conditions, and
restrictions on the surplus state real property. The regulatory
agreement shall be a first priority lien on the surplus state real
property and last for a period of at least 40 years, and if another
state agency is lending funds for a project, a combined regulatory
agreement shall be utilized. Notwithstanding any other provision
of law, the regulatory agreement shall not be subordinated to any
other lien or encumbrance except for any federal loan program the
statutes or regulations of which require a first priority lien for that
federal loan.

(4) Notwithstanding any other provision of law, the Director of
General Services may transfer surplus state real property to a local
agency for less than fair market value if the local agency uses the
surplus state real property for parks or open-space purposes. The
deed or other instrument of transfer shall provide that the surplus
state real property would revert to the state if the use changed to
a use other than parks or open-space purposes during the period
of 25 years after the transfer date. For the purpose of this paragraph,
“open-space purposes” means the use of land for public recreation,
enjoyment of scenic beauty, or conservation or use of natural
resources.

(d) Thirty days prior to executing a transaction for a sale, lease,
exchange, a sale combined with an exchange, or other manner of
disposition of the surplus state real property for less than fair
market value or for affordable housing, or as authorized by the
Legislature, the Director of General Services shall report to the
chairpersons of the fiscal committees of the Legislature all of the
following:

(1) The financial terms of the transaction.

(2) A comparison of fair market value for the surplus state real
property and the terms listed in paragraph (1).

(3) The basis for agreeing to terms and conditions other than
fair market value.

(e) As to surplus state real property sold or exchanged pursuant
to this section, the director shall except and reserve to the state all
mineral deposits, as described in Section 6407 of the Public
Resources Code, together with the right to prospect for, mine, and
remove the deposits. If, however, the director determines that there
is little or no potential for mineral deposits, the reservation may
be without surface right of entry above a depth of 500 feet, or the
rights to prospect for, mine, and remove the deposits shall be
limited to those areas of the surplus state real property conveyed
that the director determines to be reasonably necessary for the
removal of the deposits.

(f) The failure to comply with this section, except for subdivision
(d), shall not invalidate the transfer or conveyance of surplus state
real property to a purchaser for value.

(g) For purposes of this section, fair market value is established
by an appraisal and economic evaluation conducted by the
department or approved by the department.

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 12432 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

12432.  

(a) The Legislature hereby finds and declares that it is
essential for the state to replace the current automated human
resource/payroll systems operated by the Controller to ensure that
state employees continue to be paid accurately and on time and
that the state may take advantage of new capabilities and improved
business practices. To achieve this replacement of the current
systems, the Controller is authorized to procure, modify, and
implement a new human resource management system that meets
the needs of a modern state government. This replacement effort
is known as the 21st Century Project.

(b) Notwithstanding any other law, beginning with the 2004-05
fiscal year, the Controller may assess the special and
nongovernmental cost funds in sufficient amounts to pay for the
authorized 21st Century Project costs that are attributable to those
funds. Assessments in support of the expenditures for the 21st
Century Project shall be made quarterly, and the total amount
assessed from these funds annually shall not exceed the total
expenditures incurred by the Controller for the 21st Century Project
that are attributable to those funds in that fiscal year.
Appropriations for this purpose shall be made in the annual Budget
Act.

(c) To the extent permitted by law, beginning with the 2004-05
fiscal year, the Controller shall establish agreements with various
agencies and departments for the collection from federal funds of
costs that are attributable to federal funds. The total amount
collected from those agencies and departments annually shall not
exceed the total expenditures incurred by the Controller for the
21st Century Project that are attributable to federal funds in that
fiscal year. Appropriations for that purpose shall be made in the
annual Budget Act.

(d) It is the intent of the Legislature that, beginning not earlier
than the 2006-07 fiscal year, future annual Budget Acts include
General Fund appropriations in sufficient amounts for expenditures
for the 21st Century Project that are attributable to the General
Fund. It is the Legislature’s intent that the share of the total project
costs paid for by the General Fund shall be equivalent to the share
of the total project costs paid for from special and nongovernmental
cost fund assessments and collections from federal funds.

(e) This section shall remain in effect only until June 30, begin delete 2015, end delete
begin insert 2016, end insert and as of that date is repealed.

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert The heading of Chapter 5 (commencing with Section
13400) of Part 3 of Division 3 of Title 2 of the end insert begin insert Government Code end insert
begin insert is amended to read: end insert

 

Chapter  5. The begin delete Financial Integrity and State Manager’s
Accountability Act of 1983 end delete begin insert State Leadership Accountability
Act end insert

 

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 13400 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

13400.  

This act shall be known and may be cited as the
begin delete Financial Integrity and State Manager’s Accountability Act of
1983. end delete begin insert State Leadership Accountability Act end insert begin insert . end insert

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 13401 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

13401.  

(a) The Legislature begin delete hereby end delete finds begin insert all of end insert the following:

(1) Active oversight processes, including regular and ongoing
monitoring processes, for the prevention and early detection of
fraud and errors in program administration are vital to public
confidence and the appropriate and efficient use of public
resources.

(2) Fraud and errors in state programs are more likely to occur
from a lack of effective systems of internal begin delete accounting and
administrative end delete control in begin delete the end delete state agencies when active monitoring
measures are not maintained to ensure that begin delete accounting and
administrative end delete controls are functioning properly.

(3) Effective systems of internal begin delete accounting and administrative end delete
control provide the basic foundation upon which a structure of
public accountability must be built.

(4) Effective systems of internal begin delete accounting and administrative end delete
control are necessary to ensure that state begin delete assets and funds end delete begin insert resources end insert
are adequately begin delete safeguarded, as well as to produce reliable financial
information for the agency. end delete begin insert safeguarded, monitored, and
administered. end insert

(5) Systems of internal begin delete accounting and administrative end delete control
are necessarily dynamic and must be routinely monitored,
continuously evaluated, and, where necessary, improved.

(6) Reports regarding the continuing adequacy of the systems
of internal begin delete accounting and administrative end delete control of each state
agency are necessary to enable the executive branch, the
Legislature, and the public to evaluate begin delete the end delete begin insert each state end insert agency’s
performance of its public responsibilities and accountability.

(b) The Legislature declares begin delete it end delete begin insert all of the following end insert to be the
begin delete policy end delete begin insert policies end insert of the begin delete State of California that: end delete begin insert state: end insert

(1) Each state agency must maintain effective systems of internal
begin delete accounting and administrative end delete control as an integral part of its
management practices.

(2) The systems of internal begin delete accounting and administrative end delete control
of each state agency shall be evaluated on an ongoing basis through
regular and ongoing monitoring processes and, when detected,
weaknesses must be promptly corrected.

(3) All levels of management of begin delete the end delete state agencies must be
involved in assessing and strengthening the systems of internal
begin delete accounting and administrative end delete control to minimize fraud, errors,
abuse, and waste of government begin delete funds, however, key monitoring end delete
begin insert funds. Monitoring end insert processes should be begin delete structured end delete begin insert designed end insert to
ensure begin delete the independence and end delete objectivity of persons tasked with
begin delete such end delete monitoring. begin insert Objectivity means allowing those tasked with
monitoring to maintain integrity, impartiality, a questioning state
of mind, and the ability to accurately and fairly assess
circumstances and draw sound conclusions. end insert

(4) It shall be the responsibility of the Department of Finance,
in consultation with the Controller and begin insert the California end insert State Auditor,
to establish guidelines for how the begin delete independence and end delete objectivity
of the persons tasked with monitoring processes are to be
maintained. begin delete Such end delete begin insert Those end insert guidelines should include establishing
monitor training programs, identification of appropriate
chain-of-command reporting relationships, and recommended best
practices for professional development and the conduct of
begin delete independent end delete begin insert objective end insert monitoring, including begin insert , but not limited to, end insert
practices for the regular dissemination of strategies and lessons
learned from successful efforts to strengthen state administration
via interagency cooperation.

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 13402 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

13402.  

begin delete State agency end delete begin insert Agency end insert heads are responsible for the
establishment and maintenance of a system or systems of internal
begin delete accounting, administrative end delete control, and begin delete effective, independent, end delete
begin insert effective end insert and objective ongoing monitoring of the internal
begin delete accounting and administrative end delete controls within their begin insert state end insert agencies.
This responsibility includes documenting the system,
communicating system requirements to employees, and ensuring
that the system is functioning as prescribed and is modified, as
appropriate, for changes in conditions.

begin insert

begin insert SEC. 16. end insert   

end insert

begin insert Section 13403 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

begin delete

13403.  

(a) Internal accounting and administrative controls, if
maintained and reinforced through effective monitoring systems
and processes, are the methods through which reasonable
assurances can be given that measures adopted by state agency
heads to safeguard assets, check the accuracy and reliability of
accounting data, promote operational efficiency, and encourage
adherence to prescribed managerial policies are being followed.
The

end delete

begin insert

begin insert 13403. end insert   

end insert begin insert

(a) As used in this chapter, “internal control” means
a process, including a continuous built-in component of operations,
effected by a state agency’s oversight body, management, and
other personnel that provide reasonable assurance that the state
agency’s objectives will be achieved. The following five
components of internal control, if effectively designed,
implemented, and operated in an integrated manner, constitute an
effective internal control system:

end insert begin insert

(1) “Control environment” means the foundation for an internal
control system that provides the discipline and structure to help
a state agency achieve its objectives.

end insert begin insert

(2) “Risk assessment” means an assessment of the risks facing
the state agency as it seeks to achieve its objectives and provides
the basis for developing appropriate risk responses.

end insert begin insert

(3) “Control activities” means the actions management
establishes through policies and procedures to achieve objectives
and respond to risks in the internal control system.

end insert begin insert

(4) “Information and communication” means the quality of
vital information used and communicated to achieve the state
agency’s objectives.

end insert begin insert

(5) “Monitoring” means the activities management establishes
and operates to assess the quality of performance over time and
promptly resolve the findings of audits and other reviews.

end insert

begin insert (b) end insert begin insert   end insert begin insert The end insert elements of a satisfactory system of internal begin delete accounting
and administrative end delete control, shall include, but are not limited to,
the following:

(1) A plan of organization that provides segregation of duties
appropriate for proper safeguarding of state agency assets.

(2) A plan that limits access to state agency assets to authorized
personnel who require these assets in the performance of their
assigned duties.

(3) A system of begin delete authorization and recordkeeping end delete begin insert policies and end insert
procedures adequate to provide begin delete effective accounting control over
assets, liabilities, revenues, and expenditures. end delete begin insert compliance with
applicable laws, criteria, standards, and other requirements. end insert

(4) An established system of practices to be followed in
performance of duties and functions in each of the state agencies.

(5) Personnel of a quality commensurate with their
responsibilities.

(6) An effective system of internal review.

begin insert

(7) A technology infrastructure to support the completeness,
accuracy, and validity of information processed.

end insert begin delete

(b) State agency

end delete

begin insert (c) end insert begin insert   end insert begin insert Agency end insert heads shall follow begin delete these end delete begin insert the end insert standards begin insert established
by this section end insert of internal begin delete accounting and administrative end delete control
in carrying out the requirements of Section 13402.

begin delete

(c)

end delete

begin insert (d) end insert  Monitoring systems and processes are vital to the following:

(1) Ensuring that routine application of internal controls begin delete does end delete
begin insert do end insert not diminish their efficacy over time.

(2) Providing timely notice and opportunity for correction of
emerging weaknesses with established internal controls.

(3) Facilitating public resources and other decisions by ensuring
availability of accurate and reliable information.

(4) Facilitating production of timely and accurate financial
reports, and the submittal, when appropriate, of recommendations
for how greater efficiencies in support of the begin insert state end insert agency’s mission
may be attainable via the consolidation or restructuring of
potentially duplicative or inefficient processes, programs, or
practices where it appears such changes may be achieved without
undermining program effectiveness, quality, or customer
satisfaction.

begin delete

(d)

end delete

begin insert (e) end insert  It shall be the responsibility of the Department of Finance,
in consultation with the Controller and begin insert the California end insert State Auditor,
to establish guidelines begin delete to end delete begin insert for the management of end insert state agencies
begin delete management end delete on how the role of begin delete independent monitor end delete begin insert monitoring end insert
should be staffed, structured, and its reporting function standardized
so it fits within an efficient and normalized begin insert state end insert agency
administrative framework.

begin delete

(e) State agency

end delete

begin insert (f) end insert begin insert   end insert begin insert Agency end insert heads shall implement systems and processes to
ensure the begin delete independence and end delete objectivity of the monitoring of
internal begin delete accounting and administrative end delete control as an ongoing
activity in carrying out the requirements of Section 13402.

begin insert

begin insert SEC. 17. end insert   

end insert

begin insert Section 13404 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

13404.  

As used in this chapter:

begin delete

(a) “Governor” means the Governor of California.

end delete begin delete

(b) “Controller” means the Controller of California.

end delete begin delete

(c) “Director” means the Director of Finance.

end delete begin delete

(d) “Attorney General” means the Attorney General of
California.

end delete begin delete

(e) “Treasurer” means the Treasurer of California.

end delete begin insert

(a) “Agency head” means the individual responsible for the
overall operations of a state agency.

end insert begin insert

(b) “State agency” means every entity included in subdivision
(a) of Section 11000 and the California State University. The
Department of Finance shall make the final determination whether
a state entity is a state agency for purposes of being subject to the
provisions of this chapter.

end insert

begin insert

begin insert SEC. 18. end insert   

end insert

begin insert Section 13405 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

13405.  

(a) To ensure that the requirements of this chapter are
fully complied with, begin delete the head of end delete each begin delete state end delete agency begin insert head end insert that the
begin delete director end delete begin insert Department of Finance end insert determines is covered by this
section shall, on a biennial basis but no later than December 31 of
each odd-numbered year, conduct an internal review and prepare
a report on the adequacy of the begin insert state end insert agency’s systems of internal
begin delete accounting, administrative end delete control, and monitoring practices in
accordance with the guide prepared by the begin delete director end delete begin insert Department of
Finance end insert pursuant to subdivision (d).

(b) The report, including the state agency’s response to review
recommendations, shall be signed by the begin delete head of the end delete agency begin insert head end insert
and addressed to the agency secretary, or the begin delete director end delete begin insert Director of
Finance end insert for begin delete agencies end delete begin insert a state agency end insert without a secretary. begin delete Copies
of the reports shall be submitted end delete begin insert An agency head shall submit a
copy of the report and related response, pursuant to a method
determined by the Department of Finance, end insert to the Legislature, the
begin insert California end insert State Auditor, the Controller, the begin delete Treasurer, the Attorney
General, the Governor, the director, end delete begin insert Department of Finance, the
Secretary of Government Operations, end insert and to the State Library
where begin delete they end delete begin insert the copy end insert shall be available for public inspection.

(c) The report shall identify any material inadequacy or material
weakness in begin delete an end delete begin insert a state end insert agency’s systems of internal begin delete accounting
and administrative end delete control that prevents the begin delete head of the end delete agency
begin insert head end insert from stating that the begin insert state end insert agency’s systems comply with this
chapter. begin delete No later than 30 days after the report is submitted, the end delete
begin insert Concurrently with the submission of the report pursuant to
subdivision (b), the state end insert agency shall provide to the begin delete director end delete
begin insert Department of Finance end insert a plan and schedule for correcting the
identified inadequacies and weaknesses, begin delete which end delete begin insert that end insert shall be
updated every six months until all corrections are begin delete completed. end delete
begin insert implemented. end insert

(d) The begin delete director, end delete begin insert Department of Finance end insert in consultation with
the begin insert California end insert State Auditor and the Controller, shall establish,
and may modify from time to time as necessary, a system of
reporting and a general framework to guide state agencies in
conducting internal reviews of their systems of internal begin delete accounting
and administrative end delete control.

(e) The begin delete director, end delete begin insert Department of Finance end insert in consultation with
the begin insert California end insert State Auditor and the Controller, shall establish,
and may modify from time to time as necessary, a general
framework of recommended practices to guide state agencies in
conducting active, ongoing monitoring of processes for internal
begin delete accounting and administrative end delete control.

begin insert

begin insert SEC. 19. end insert   

end insert

begin insert Section 13406 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

13406.  

(a) The head of the internal audit staff of a state agency
begin delete or a division, end delete begin insert , end insert as specified by the begin delete director, end delete begin insert Director of Finance, end insert
or, in the event there is no internal audit function, a professional
accountant, if available on the staff, designated as the internal
control person by the begin insert agency end insert head begin delete of the state agency or a division, end delete
shall receive and investigate any allegation that an employee of
the begin insert state end insert agency provided false or misleading information in
connection with the review of the begin insert state end insert agency’s systems of internal
begin delete accounting and administrative end delete control or in connection with the
preparation of the biennial report on the systems of internal
begin delete accounting, administrative end delete control, and monitoring practices.

(b) If, in connection with any investigation under subdivision
(a), the head of the internal audit staff or the designated internal
control person determines that there is reasonable cause to believe
that false or misleading information was provided, he or she shall
report in writing that determination to the begin delete head of the agency or
the division. end delete begin insert agency head. end insert

(c) The begin delete head of the end delete agency begin delete or division end delete begin insert head end insert shall review any
matter referred to him or her under subdivision (b), shall take begin delete such end delete
begin insert the end insert disciplinary or corrective action as he or she deems necessary,
and shall forward a copy of the report, indicating begin delete therein end delete the action
taken, to the begin delete director end delete begin insert Department of Finance end insert within 90 days of the
date of the report.

begin insert

begin insert SEC. 20. end insert   

end insert

begin insert Section 13407 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

13407.  

Because sound internal begin delete accounting and administrative end delete
controls and the regular and ongoing monitoring of those internal
controls significantly inhibits waste of resources and thereby
creates savings, the begin delete director end delete begin insert Department of Finance end insert and begin insert state end insert
agencies begin delete and divisions end delete shall carry out the provisions of this chapter
by using existing resources.

begin insert

begin insert SEC. 21. end insert   

end insert

begin insert Section 13974.1 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

13974.1.  

(a) The begin delete board end delete begin insert California Victim Compensation and
Government Claims Board end insert shall use the applicable provisions of
this article to establish a claim and reward procedure to reward
persons providing information leading to the location of any child
listed in the missing children registry compiled pursuant to former
Section 11114 of the Penal Code or maintained pursuant to the
system maintained pursuant to Sections 14203 and 14204 of the
Penal Code.

(b) Awards shall be made upon recommendation of the
Department of Justice in an amount of not to exceed five hundred
dollars ($500) to any one individual. However, as a condition to
an award, in any particular case, an amount equal to or greater in
nonstate funds shall have been first offered as a reward for
information leading to the location of that missing child.

(c) The Missing Children Reward Fund is begin delete hereby created in the
State Treasury and is continuously appropriated to the end delete begin insert abolished
and any remaining balance is transferred to the Restitution Fund.
The end insert California Victim Compensation and Government Claims
Board begin delete to end delete begin insert shall end insert make awards pursuant to this begin delete section. end delete begin insert section from
the Restitution Fund, using the appropriation authority provided
in Section 13964. end insert

begin insert

begin insert SEC. 22. end insert   

end insert

begin insert Section 16522 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

16522.  

The following securities may be received as security
for demand and time deposits:

(a) Bonds, notes, or other obligations of the United States, or
those for which the faith and credit of the United States are pledged
for the payment of principal and interest, including the guaranteed
portions of small business administration loans, so long as those
loans are obligations for which the faith and credit of the United
States are pledged for the payment of principal and interest.

(b) Notes or bonds or any obligations of a local public agency
(as defined in the United States Housing Act of 1949) or any
obligations of a public housing agency (as defined in the United
States Housing Act of 1937) for which the faith and credit of the
United States are pledged for the payment of principal and interest.

(c) Bonds of this state or of any county, city, town, metropolitan
water district, municipal utility district, municipal water district,
bridge and highway district, flood control district, school district,
water district, water conservation district or irrigation district within
this state, and, in addition, revenue or tax anticipation notes, and
revenue bonds payable solely out of the revenues from a
revenue-producing property owned, controlled or operated by this
state, or such local agency or district, or by a department, board,
agency, or authority thereof.

(d) Registered warrants of this state.

(e) Bonds, consolidated bonds, collateral trust debentures,
consolidated debentures, or other obligations issued by the United
States Postal Service, federal land banks or federal intermediate
credit banks established under the Federal Farm Loan Act, as
amended, debentures and consolidated debentures issued by the
Central Bank for Cooperatives and banks for cooperatives
established under the Farm Credit Act of 1933, as amended,
consolidated obligations of the Federal Home Loan Banks
established under the Federal Home Loan Bank Act, bonds,
debentures and other obligations of the Federal National Mortgage
Association and of the Government National Mortgage Association
established under the National Housing Act as amended, in the
bonds of any federal home loan bank established under said act,
bonds, debentures, and other obligations of the Federal Home Loan
Mortgage Corporation established under the Emergency Home
Finance Act of 1970, and in bonds, notes, and other obligations
issued by the Tennessee Valley Authority under the Tennessee
Valley Authority Act, as amended.

(f) Bonds and notes of the California Housing Finance Agency
issued pursuant to Chapter 7 (commencing with Section 41700)
of Part 3 of Division 31 of the Health and Safety Code.

(g) Promissory notes secured by first mortgages and first trust
deeds upon residential real property located in California, provided
that:

(1) Notwithstanding Section 16521, the promissory notes shall
at all times be in an amount in value at least 50 percent in excess
of the amount deposited with the bank;

(2) The Treasurer issues regulations, establishes procedures for
determining the value of the promissory notes and develops
standards necessary to protect the security of the deposits so
collateralized;

(3) The depository may exercise, enforce, or waive any right or
power granted to it by promissory note, mortgage, or deed of trust;
and

(4) The following may not be used as security for deposits:

(i) Any promissory note on which any payment is more than 90
days past due,

(ii) Any promissory note secured by a mortgage or deed of trust
as to which there is a lien prior to the mortgage or deed of trust,
or

(iii) Any promissory note secured by a mortgage or deed of trust
as to which a notice of default has been recorded pursuant to
Section 2924 of the Civil Code or an action has been commenced
pursuant to Section 725a of the Code of Civil Procedure.

(h) Bonds issued by the State of Israel.

(i) Obligations issued, assumed, or guaranteed by the
International Bank for Reconstruction and Development, the
Inter-American Development Bank, the Asian Development Bank,
the African Development Bank, the International Finance
Corporation, or the Government Development Bank of Puerto
Rico.

(j) Any municipal securities, as defined by Section 3(a)(29) of
the Securities Exchange Act of June 6, 1934, (15 U.S.C. 78, as
amended), which are issued by this state or any local agency
thereof.

(k) Letters of credit issued by the Federal Home Loan Bank of
San Francisco, which shall be in the form and shall contain
provisions as the Treasurer may prescribe, and shall include the
following terms:

(1) The Treasurer shall be the beneficiary of the letter of credit.

(2) The letter of credit shall be clean and irrevocable, and shall
provide that the Treasurer may draw upon it up to the total amount
in the event of the failure of the bank or if the bank refuses to
permit the withdrawal of funds by the Treasurer or any other
authorized state officer or employee.

begin insert

(l) An eligible bank that has been selected by the Treasurer for
the safekeeping of money belonging to, or in the custody of, the
state, and that has its headquarters located outside of the state,
may submit letters of credit that are drawn on its regional federal
home loan bank as security, solely for deposits maintained in the
Treasurer’s demand accounts, and subject to the terms set forth
in paragraphs (1) and (2) of subdivision (k).

end insert

begin insert

begin insert SEC. 23. end insert   

end insert

begin insert Section 16551 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

16551.  

With the consent of the bank owning securities
deposited or to be deposited with him begin insert or her end insert as security, the
Treasurer may:

(a) Authorize any qualified trust company, other than the
depositor bank, or begin delete the Federal Reserve Bank of San Francisco end delete begin insert any
federal reserve bank end insert or any branch thereof or any state or national
bank located in any city designated as a reserve or central reserve
city by the Board of Governors of the Federal Reserve System to
receive as his begin insert or her end insert agent deposits of any securities approved
under this chapter.

(b) Place and maintain for safekeeping as a trust deposit with
any qualified trust company, other than the depositor bank, or with
begin delete the Federal Reserve Bank of San Francisco end delete begin insert any federal reserve
bank end insert or any branch thereof any securities that have been received
by him begin insert or her end insert under this chapter.

(c) Whenever any qualified trust company accepts such
securities under paragraph (a) or (b) such trust company, with the
prior approval of the Treasurer, may keep such securities for
safekeeping with any state or national bank located in a city
designated as a reserve or central reserve city by the Board of
Governors of the Federal Reserve System.

begin insert

begin insert SEC. 24. end insert   

end insert

begin insert Section 16552 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

16552.  

The Treasurer shall take from the qualified trust
company or from begin delete the Federal Reserve Bank of San Francisco end delete begin insert any
federal reserve bank end insert or begin delete a end delete begin insert any end insert branch thereof a receipt for any
securities received by it under this article. Neither the Treasurer
nor the State is responsible for the custody and safe return of such
securities until they are withdrawn from the qualified trust company
or from begin delete the Federal Reserve Bank of San Francisco end delete begin insert any federal
reserve bank end insert or begin delete a end delete begin insert any end insert branch thereof by the Treasurer.

begin insert

begin insert SEC. 25. end insert   

end insert

begin insert Section 16553 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

16553.  

Any qualified trust company or begin delete the Federal Reserve
Bank of San Francisco end delete begin insert any federal reserve bank end insert or any branch
thereof to which securities are delivered, either as agent or
depositary for the Treasury, shall make such disposition of the
securities as the Treasurer directs and is responsible only for strict
compliance with written instructions given to it by the Treasurer.
All such securities are at all times subject to the order of the
Treasurer.

begin insert

begin insert SEC. 26. end insert   

end insert

begin insert Section 16554 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

16554.  

The charges of any qualified trust company or of begin delete the
Federal Reserve Bank of San Francisco end delete begin insert any federal reserve bank end insert
or begin delete a end delete begin insert any end insert branch thereof for the handling and safekeeping of such
securities are not a charge against the Treasurer but shall be paid
by the owner.

begin insert

begin insert SEC. 27. end insert   

end insert

begin insert Section 16626 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

16626.  

With the consent of the savings and loan association
or credit union owning securities deposited or to be deposited with
him or her as security, the Treasurer may:

(a) Authorize any qualified trust company or begin delete the Federal Reserve
Bank of San Francisco end delete begin insert any federal reserve bank end insert or any branch
thereof or any state or national bank located in any city designated
as a reserve or central reserve city by the Board of Governors of
the Federal Reserve System or the Federal Home Loan Bank of
San Francisco to receive as his or her agent deposits of any
securities approved under this chapter.

(b) Place and maintain for safekeeping as a trust deposit with
any qualified trust company, or with begin delete the Federal Reserve Bank of
San Francisco end delete begin insert any federal reserve bank end insert or any branch thereof or
the Federal Home Loan Bank of San Francisco any securities that
have been received by him or her under this chapter.

(c) Whenever any qualified trust company accepts securities
under paragraph (a) or (b) the trust company, with the prior
approval of the Treasurer, may keep the securities for safekeeping
with any state or national bank located in a city designated as a
reserve or central reserve city by the Board of Governors of the
Federal Reserve System.

begin insert

begin insert SEC. 28. end insert   

end insert

begin insert Section 16627 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

16627.  

The Treasurer shall take from the qualified trust
company or from begin delete the Federal Reserve Bank of San Francisco end delete begin insert any
federal reserve bank end insert or begin delete a end delete begin insert any end insert branch thereof or the Federal Home
Loan Bank of San Francisco a receipt for any securities received
by it under this article. Neither the Treasurer nor the state is
responsible for the custody and safe return of such securities until
they are withdrawn from the qualified trust company or from begin delete the
Federal Reserve Bank of San Francisco end delete begin insert any federal reserve bank end insert
or begin delete a end delete begin insert any end insert branch thereof or from the Federal Home Loan Bank of
San Francisco by the Treasurer.

begin insert

begin insert SEC. 29. end insert   

end insert

begin insert Section 16628 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

16628.  

Any qualified trust company or begin delete the Federal Reserve
Bank of San Francisco end delete begin insert any federal reserve bank end insert or any branch
thereof or the Federal Home Loan Bank of San Francisco to which
securities are delivered, either as agent or depositary for the
Treasury, shall make such disposition of the securities as the
Treasurer directs and is responsible only for strict compliance with
written instructions given to it by the Treasurer. All such securities
are at all times subject to the order of the Treasurer.

begin insert

begin insert SEC. 30. end insert   

end insert

begin insert Section 16629 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

16629.  

The charges of any qualified trust company or of begin delete the
Federal Reserve Bank of San Francisco end delete begin insert any federal reserve bank end insert
or begin delete a end delete begin insert any end insert branch thereof or the Federal Home Loan Bank of San
Francisco for the handling and safekeeping of such securities are
not a charge against the Treasurer but shall be paid by the owner.

begin insert

begin insert SEC. 31. end insert   

end insert

begin insert Section 17604 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 17604. end insert   

(a) The Department of Finance, in collaboration with
the Secretary of State and the Legislative Analyst’s Office, shall
convene a working group to evaluate alternatives for funding
election-related state mandates. The working group shall
commence no later than September 1, 2015. By September 1, 2016,
the Department of Finance shall submit to the Legislature a report
that summarizes the findings of the working group, including
recommendations to the Legislature.

(b) (1) The Department of Finance shall conduct a survey of
county election officials during years in which a statewide general
election is held pursuant to Section 1200 of the Elections Code to
determine whether or not counties are carrying out the
requirements set forth in the following state mandates:

(A) Absentee ballots.

(B) Absentee ballots tabulation by precinct.

(C) Modified primary election.

(D) Permanent absentee voters II.

(E) Voter identification procedures.

(F) Voter registration procedures.

(2) The Department of Finance shall report the results of the
survey to the Legislature by each April 1 following a statewide
general election.

(c) A report to be submitted pursuant to subdivisions (a) and
(b) shall be submitted in compliance with Section 9795 of the
Government Code.

end insert

begin insert

begin insert SEC. 32. end insert   

end insert

begin insert Section 19213 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 19213. end insert   

“Additional appointment” is the term used when a state
civil service employee is appointed to more than one position in
state service. An additional appointment shall comply with state
civil service laws and rules. Consistent with board rules, the
Department of Human Resources shall adopt policies to advise
state agencies regarding the procedures and appropriate use of
additional appointments.

end insert

begin insert

begin insert SEC. 33. end insert   

end insert

begin insert Section 21231 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 21231. end insert   

(a) On and after January 1, 2013, a retired person
may serve without reinstatement from retirement or loss or
interruption of benefits provided by this system, as an elective
officer.

(b) If a retired person serves without reinstatement from
retirement in an elective office and part or all of his or her
retirement allowance is based on service in that elective office,
the portion of the allowance based on service in that elective office
shall be suspended during incumbency in that elective office. The
entire retirement allowance shall be paid for time on and after the
person vacates the elective office in the monthly amount payable
had the allowance not been suspended. The governing body of
every employer other than the state shall cause immediate notice
to be given to this system of the election of any retired person to
an office of the employer.

end insert

begin insert

begin insert SEC. 34. end insert   

end insert

begin insert Section 21232 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 21232. end insert   

On and after January 1, 2013, a person who has retired
for disability and has not attained the mandatory age for retirement
for persons in the employment in which he or she will be employed,
and whom the board finds is not disabled for that employment,
may be so employed by any employer without reinstatement from
retirement if the position is not the position from which this person
retired or a position in the same member classification. The
person’s disability retirement pension shall be reduced during this
employment to an amount that, when added to the compensation
received, equals the maximum compensation earnable by a person
holding the position that he or she held at the time of retirement.
This employment shall terminate upon the person’s attainment of
the mandatory retirement age for persons in that employment. A
person employed under this section shall not be concurrently
employed under this article.

end insert

begin insert

begin insert SEC. 35. end insert   

end insert

begin insert Section 27397 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

27397.  

(a) A county establishing an electronic recording
delivery system under this article shall pay for the direct cost of
regulation and oversight by the Attorney General.

(b) The Attorney General may charge a fee directly to a vendor
seeking approval of software and other services as part of an
electronic recording delivery system. The fee shall not exceed the
reasonable costs of approving software or other services for
vendors.

(c) In order to pay costs under this section, a county may do
any of the following:

(1) Impose a fee in an amount up to and including one dollar
($1) for each instrument that is recorded by the county. This fee
may, at the county’s discretion, be limited to instruments that are
recorded pursuant to the electronic recording delivery system.

(2) Impose a fee upon any vendor seeking approval of software
and other services as part of an electronic recording delivery
system.

(3) Impose a fee upon any person seeking to contract as an
authorized submitter.

(d) The total fees assessed by a county recorder pursuant to this
section may not exceed the reasonable total costs of the electronic
recording delivery system, the review and approval of vendors and
potential authorized submitters, security testing as required by this
article and the regulations of the Attorney General, and
reimbursement to the Attorney General for regulation and oversight
of the electronic recording delivery system.

(e) Fees paid to the Attorney General pursuant to subdivisions
(a) and (b) shall be deposited in the Electronic Recording
Authorization begin delete Account, end delete begin insert Fund end insert which is hereby created in the begin delete Special
Deposit Fund, end delete begin insert State Treasury, end insert and, notwithstanding Section 13340,
is continuously appropriated, without regard to fiscal years, to the
Attorney General for the costs described in those subdivisions.
begin insert Moneys deposited in the Electronic Recording Authorization
Account prior to the effective date of the amendments to this
subdivision made during the 2015 Regular Session shall be
immediately transferred to the Electronic Recording Authorization
Fund. end insert

begin insert

begin insert SEC. 36. end insert   

end insert

begin insert Section 65050 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 65050. end insert   

There is hereby established a Statewide Director of
Immigrant Integration. The Director shall be appointed by and
serve at the pleasure of the Governor. The Director shall serve as
the statewide lead for the planning and coordination of immigrant
services and policies in California. The duties of the Statewide
Director of Immigrant Integration shall include, but are not limited
to, all of the following:

(a) Develop comprehensive statewide report on programs and
services that serve immigrants, including immigrants regardless
of legal presence. The report shall include all of the following:

(1) Federal and state laws, regulations, and policies that create
programs or authorize the access or participation of immigrants,
including immigrants without legal presence.

(2) Programs and services currently managed by a state agency
or department to support California immigrants, such as
naturalization services and other immigrant assistance programs,
and the agency or department responsible for administering the
funding or implementing the program.

(b) On or before January 10, 2017, report to the Governor and
the Legislature on the programs and services described in
subdivision (a) and a statewide plan for better implementation
and coordination of immigrant assistance policies and programs.

(c) On or before July 10, 2017, develop an online clearinghouse
of immigrant services, resources, and programs.

(d) Monitor the implementation of statewide laws and
regulations that serve immigrants.

end insert

begin insert

begin insert SEC. 37. end insert   

end insert

begin insert Section 65051 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 65051. end insert   

(a) The Immigrant Integration Fund is hereby created
in the State Treasury. Moneys in the fund shall be used for any
purpose authorized by this chapter.

(b) The Immigrant Integration Fund may be funded by both
private and public funds. Cash donations received pursuant to this
subdivision shall be deposited into the fund and shall be made
available immediately upon deposit and appropriation by the
Legislature for the purposes described in this chapter.

end insert

begin insert

begin insert SEC. 38. end insert   

end insert

begin insert Chapter 4 (commencing with Section 34090) is added
to Part 1.6 of Division 24 of the end insert begin insert Health and Safety Code end insert begin insert , to read: end insert

begin insert

 

Chapter   begin insert 4. end insert Drought Housing Relocation Assistance

 

begin insert 34090. end insert   

(a) The department may provide temporary assistance
to a person moving out of a housing unit due to a lack of potable
water connected to the housing unit resulting from the drought
conditions described in the state of emergency proclaimed by the
Governor on January 17, 2014, if both of the following
requirements are met:

(1) The person has exhausted all reasonable attempts to find a
potable water source for the housing unit.

(2) The housing unit is served by a private well or water utility
with fewer than 15 connections that is running out of potable water
due to drought conditions.

(b) (1) The department may administer the housing assistance
or contract with a qualified state or local government agency or
nonprofit organization to administer the assistance.

(2) The department may utilize available funds to leverage or
complement other rental housing subsidy programs providing
temporary assistance to qualifying households.

(c) The department shall adopt guidelines to implement this
chapter, including, but not limited to, eligibility, income limits,
type of assistance to be provided, and amounts of assistance.

begin insert 34091. end insert   

Any rule, policy, or standard of general application
employed by the department in implementing this chapter shall
not be subject to the requirements of the Administrative Procedure
Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code).

begin insert 34092. end insert   

This chapter shall remain in effect only until June 30,
2017, and as of that date is repealed.

end insert

begin insert

begin insert SEC. 39. end insert   

end insert

begin insert Section 50661 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

50661.  

(a) There is hereby created in the State Treasury the
Housing Rehabilitation Loan Fund. All interest or other increments
resulting from the investment of moneys in the Housing
Rehabilitation Loan Fund shall be deposited in the fund,
notwithstanding Section 16305.7 of the Government Code.
Notwithstanding Section 13340 of the Government Code, all
money in the fund is continuously appropriated to the department
for the following purposes:

(1) For making deferred-payment rehabilitation loans for
financing all or a portion of the cost of rehabilitating existing
housing to meet rehabilitation standards as provided in this chapter.

(2) For making deferred payment loans as provided in Sections
50668.5, 50669, and 50670.

(3) For making deferred payment loans pursuant to Sections
50662.5 and 50671.

(4) Subject to the restrictions of Section 53131, if applicable,
for administrative expenses of the department made pursuant to
this chapter, Article 3 (commencing with Section 50693) of Chapter
7.5, and Chapter 10 (commencing with Section 50775).

(5) For related administrative costs of nonprofit corporations
and local public entities contracting with the department pursuant
to Section 50663 in an amount, if any, as determined by the
department, to enable the entities and corporations to implement
a program pursuant to this chapter. The department shall ensure
that not less than 20 percent of the funds loaned pursuant to this
chapter shall be allocated to rural areas. For purposes of this
chapter, “rural area” shall have the same meaning as in Section
50199.21.

(6) To the extent no other funding sources are available, ten
million dollars ($10,000,000), as provided in Section 4 of Chapter
3 of the Statutes of 2014, may be used for the purposes of Section
34085.

begin insert

(7) To the extent that funds are made available by the
Legislature, moneys in the fund may be used for the purposes
described in Chapter 4 (commencing with Section 34090) of Part
1.6 of Division 24. Any funds made available for these purposes
that are not encumbered on or before June 30, 2017, shall revert
to the General Fund.

end insert

(b) There shall be paid into the fund the following:

(1) Any moneys appropriated and made available by the
Legislature for purposes of the fund.

(2) Any moneys that the department receives in repayment of
loans made from the fund, including any interest thereon.

(3) Any other moneys that may be made available to the
department for the purposes of this chapter from any other source
or sources.

(4) Moneys transferred or deposited to the fund pursuant to
Sections 50661.5 and 50778.

(c) Notwithstanding any other law, any interest or other
increment earned by the investment or deposit of moneys
appropriated by subdivision (b) of Section 3 of Chapter 2 of the
Statutes of the 1987-88 First Extraordinary Session, or Section 7
of Chapter 4 of the Statutes of the 1987-88 First Extraordinary
Session, shall be deposited in a special account in the Housing
Rehabilitation Loan Fund and shall be used exclusively for
purposes of Sections 50662.5 and 50671.

(d) Notwithstanding any other law, effective with the date of
the act adding this subdivision, appropriations authorized by the
Budget Act of 1996 for support of the Department of Housing and
Community Development from the California Disaster Housing
Repair Fund and the California Homeownership Assistance Fund
shall instead be authorized for expenditure from the Housing
Rehabilitation Loan Fund.

(e) Effective July 1, 2014, the California Housing Trust Fund
in the State Treasury is abolished and any remaining balance,
assets, liabilities, and encumbrances shall be transferred to, and
become part of, the Housing Rehabilitation Loan Fund.
Notwithstanding Section 13340 of the Government Code, all
transferred amounts are continuously appropriated to the
department for the purpose of satisfying any liabilities and
encumbrances and the purposes specified in this section.

begin insert

begin insert SEC. 40. end insert   

end insert

begin insert Section 50716 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

50716.  

(a) Notwithstanding any other law, to respond to the
state of emergency proclaimed by the Governor on January 17,
2014, the department shall, directly or through contracts, make the
Office of Migrant Services centers available for rent by persons
or families experiencing economic hardships begin insert or rendered homeless
or at risk of becoming homeless end insert as a result of the drought. This
may include, but is not limited to, extending the period of
occupancy prior to or beyond the standard 180-day period and
redefining persons and families eligible to occupy the centers. To
the extent feasible, the department shall give preference to persons
and families that meet existing program criteria.

(b) The department may adopt program guidelines to implement
this section. Any rule, policy, or standard of general application
employed by the department in implementing the provisions of
this section shall not be subject to the requirements of the
Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code).

begin insert

begin insert SEC. 41. end insert   

end insert

begin insert Section 10089.395 is added to the end insert begin insert Insurance Code end insert begin insert , end insert immediately following Section 10089.39 begin insert , to read: end insert

begin insert

begin insert 10089.395. end insert   

(a) The Legislature finds and declares that there
exists the California Residential Mitigation Program, also known
as the CRMP, a joint powers authority created in 2012 by
agreement between the California Earthquake Authority and the
Office of Emergency Services.

(b) Any funds appropriated by the Legislature for the purpose
of funding the CRMP’s implementation of the grant program
described in this section shall be to the department, which shall
provide the funds to the California Earthquake Authority’s
Earthquake Loss Mitigation Fund, pursuant to subdivision (k) of
Section 10089.7 and according to the terms of an agreement
negotiated by the department and the authority. The authority, the
prime funder of the CRMP, shall then transfer the funds from its
Earthquake Loss Mitigation Fund to the CRMP for further
implementation and expansion of the CRMP’s Earthquake Brace
and Bolt program, upon actions by the respective governing boards
of the authority and the CRMP, authorizing and accepting that
transfer. The CRMP shall, pursuant to the requirements of this
section, implement the grant program and make grants that assist
a qualifying owner of a single-family residential structure by
defraying the owner’s costs of seismic retrofitting of the structure.

(c) The CRMP may make a grant to an applicant who satisfies
all of the following:

(1) The applicant is an owner of record of, and lives in, the
structure to be retrofitted.

(2) The structure is a single-family, detached, residential
building composed of one to four dwelling units.

(3) The structure meets structural requirements established
pursuant to subdivision (e).

(4) The structure is located in a high-risk earthquake area,
based on criteria established pursuant to subdivision (e).

(5) The retrofit work qualifies as work for which the applicant
may receive a grant, based on criteria established pursuant to
subdivision (e).

(d) Subject to the policies, procedures, and criteria adopted
pursuant to subdivision (e), a grant shall not exceed the lesser of
75 percent of the cost of the qualifying retrofit work, or three
thousand dollars ($3,000).

(e) The governing board of the CRMP shall adopt policies and
procedures to implement this section, including, but not limited
to, establishing structural eligibility requirements for structures
that will receive a grant for seismic retrofit work, defining criteria
for determining whether a structure is located in a
high-earthquake-risk area, and defining criteria for seismic retrofit
work that qualifies as work eligible for receipt of a grant, which
may be awarded in amounts of greater or lesser than the amounts
established by subdivision (d). In adopting those policies and
procedures, the governing board shall provide notice and
opportunity for public review and comment, publish the policies
and procedures on the CRMP’s Internet Web site, and otherwise
make the policies and procedures available to the public.

end insert

begin insert

begin insert SEC. 42. end insert   

end insert

begin insert Section 10089.397 is added to the end insert begin insert Insurance Code end insert begin insert ,
to read: end insert

begin insert

begin insert 10089.397. end insert   

(a) The Legislature finds and declares that there
exists the California Residential Mitigation Program, also known
as the CRMP, a joint powers authority created in 2012 by
agreement between the California Earthquake Authority and the
Office of Emergency Services.

(b) Any funds appropriated by the Legislature for the purpose
of funding the CRMP’s implementation of the grant program
described in this section shall be to the department, which shall
provide the funds to the California Earthquake Authority’s
Earthquake Loss Mitigation Fund, pursuant to subdivision (k) of
Section 10089.7 and according to the terms of an agreement
negotiated by the department and the authority. The authority, the
prime funder of the CRMP, shall then transfer the funds from its
Earthquake Loss Mitigation Fund to the CRMP for further
implementation and expansion of the CRMP’s Earthquake Brace
and Bolt program, upon actions by the respective governing boards
of the authority and the CRMP, authorizing and accepting that
transfer. The CRMP may, pursuant to the requirements of this
section, implement the grant program and on or after July 1, 2015,
make grants that assist a qualifying owner of a multiunit residential
structure by defraying the owner’s cost of seismic retrofitting of
the structure.

(c) The CRMP may make a grant to an applicant who satisfies
all of the following:

(1) The applicant is an owner of record of the structure to be
retrofitted and has secured the written consent of all other owners
of the structure to make a grant application.

(2) The structure is a residential building of not fewer than two,
but not more than 10, dwelling units.

(3) The dwelling units in the structure are occupied by tenants
who are members of “lower income households,” as defined in
subdivision (a) of Section 50079.5 of the Health and Safety Code.

(4) The structure meets structural requirements established
pursuant to subdivision (d).

(5) The structure is located in a high-risk earthquake area,
based on criteria established pursuant to subdivision (d).

(6) The retrofit work qualifies as work for which the applicant
may receive a grant, based on criteria established pursuant to
subdivision (d).

(d) The governing board of the CRMP shall adopt policies and
procedures necessary to implement this section, including, but not
limited to, establishing the means by which the applicant may
satisfy the tenant-related economic eligibility criteria for the
program, establishing structural eligibility requirements for a
structure that will receive seismic retrofit work, defining criteria
for determining whether a structure is located in a high-risk
earthquake area, defining criteria for seismic retrofit work that
qualifies as work eligible for receipt of a grant, and defining
criteria for the determination of the amount of a grant awarded
pursuant to the program created by this section. In adopting those
policies and procedures, the governing board shall provide notice
and opportunity for public review and comment, publish the
policies and procedures on the CRMP’s Internet Web site, and
otherwise make the policies and procedures available to the public.

end insert

begin insert

begin insert SEC. 43. end insert   

end insert

begin insert Section 6309 of the end insert begin insert Labor Code end insert begin insert is amended to read: end insert

6309.  

begin insert (a) end insert begin insert   end insert If the division learns or has reason to believe that
an employment or place of employment is not safe or is injurious
to the welfare of an employee, it may, on its own motion, or upon
complaint, summarily investigate the begin delete same end delete begin insert employment or place
of employment, end insert with or without notice or hearings. However, if
the division receives a complaint from an employee, an employee’s
representative, including, but not limited to, an attorney, health or
safety professional, union representative, or government agency
representative, or an employer of an employee directly involved
in an unsafe place of employment, that his or her employment or
place of employment is not safe, it shall, with or without notice or
hearing, summarily investigate the complaint as soon as possible,
but not later than three working days after receipt of a complaint
charging a serious violation, and not later than 14 calendar days
after receipt of a complaint charging a nonserious violation. The
division shall attempt to determine the period of time in the future
that the complainant believes the unsafe condition may continue
to exist, and shall allocate inspection resources so as to respond
first to those situations in which time is of the essence. For
purposes of this section, a complaint is deemed to allege a serious
violation if the division determines that the complaint charges that
there is a substantial probability that death or serious physical harm
could result from a condition which exists, or from one or more
practices, means, methods, operations, or processes which have
been adopted or are in use in a place of employment. When a
complaint charging a serious violation is received from a state or
local prosecutor, or a local law enforcement agency, the division
shall summarily investigate the employment or place of
employment within 24 hours of receipt of the complaint. All other
complaints are deemed to allege nonserious violations. The division
may enter and serve any necessary order relative thereto. The
division is not required to respond to a complaint within this period
where, from the facts stated in the complaint, it determines that
the complaint is intended to willfully harass an employer or is
without any reasonable basis.

begin delete

The

end delete

begin insert (b) end insert begin insert   end insert begin insert The end insert division shall keep complete and accurate records of all
complaints, whether verbal or written, and shall inform the
complainant, whenever his or her identity is known, of any action
taken by the division in regard to the subject matter of the
complaint, and the reasons for the action, within 14 calendar days
of taking any action. The records of the division shall include the
dates on which any action was taken on the complaint, or the
reasons for not taking any action on the complaint. The division
shall, pursuant to authorized regulations, conduct an informal
review of any refusal by a representative of the division to issue
a citation with respect to an alleged violation. The division shall
furnish the employee or the representative of employees requesting
the review a written statement of the reasons for the division’s
final disposition of the case.

begin delete

The

end delete

begin insert (c) end insert begin insert   end insert begin insert The end insert name of a person who submits to the division a
complaint regarding the unsafe condition of an employment or
place of employment shall be kept confidential by the division,
unless that person requests otherwise.

begin delete

The

end delete

begin insert (d) end insert begin insert   end insert begin insert The end insert division shall annually compile and release on its
begin insert Internet end insert Web site data pertaining to complaints received and
citations issued.

begin delete

The

end delete

begin insert (e) end insert begin insert   end insert begin insert The end insert requirements of this section do not relieve the division
of its requirement to inspect and assure that all places of
employment are safe and healthful for employees. The division
shall maintain the capability to receive and act upon complaints
at all times. begin insert However, the division shall prioritize investigations
of reports of accidents involving death or serious injury or illness
and complaints that allege a serious violation over investigations
of complaints that allege a nonserious violation. end insert

begin insert

begin insert SEC. 44. end insert   

end insert

begin insert Section 7314 of the end insert begin insert Labor Code end insert begin insert is amended to read: end insert

7314.  

(a) The division begin delete may end delete begin insert may, subject to subdivision (f), end insert fix
and collect fees for the inspection of conveyances as it deems
necessary to cover the actual costs of having the inspection
performed by a division safety engineer, including administrative
costs, and the costs related to regulatory development as required
by Section 7323. An additional fee may, in the discretion of the
division, be charged for necessary subsequent inspections to
determine if applicable safety orders have been complied with.
The division may fix and collect fees for field consultations
regarding conveyances as it deems necessary to cover the actual
costs of the time spent in the consultation by a division safety
engineer, including administrative and travel expenses.

(b) Notwithstanding Section 6103 of the Government Code, the
division may collect the fees authorized by subdivision (a) from
the state or any county, city, district, or other political subdivision.

(c) Whenever a person owning or having the custody,
management, or operation of a conveyance fails to pay the fees
required under this chapter within 60 days after the date of
notification, he or she shall pay, in addition to the fees required
under this chapter, a penalty fee equal to 100 percent of the fee.
Failure to pay fees within 60 days after the date of notification
constitutes cause for the division to prohibit use of the conveyance.

(d)  begin insert (1) end insert begin insert   end insert Any fees required pursuant to this section begin delete shall end delete begin insert shall,
except as otherwise provided in paragraph (2), end insert be set forth in
regulations that shall be adopted as emergency regulations. These
emergency regulations shall not be subject to the review and
approval of the Office of Administrative Law pursuant to the
begin delete provisions of the end delete Administrative Procedure Act begin delete provided for in
Chapter end delete begin insert (Chapter end insert 3.5 (commencing with Section 11340) of Part
1 of Division 3 of Title 2 of the Government begin delete Code. end delete begin insert Code). end insert These
regulations shall become effective immediately upon filing with
the Secretary of State.

begin insert

(2) A suspension or reduction of fees pursuant to subdivision
(f) is not required to be set forth in a regulation.

end insert

(e) For purposes of this section, the date of the invoice assessing
a fee pursuant to this section shall be considered the date of
notification.

begin insert

(f) (1) For the 2015-16 fiscal year, the fees for the annual and
biennial inspection of conveyances required by Section 7304 are
suspended on a one-time basis.

end insert begin insert

(2) For the 2016-17 fiscal year, and for every fiscal year
thereafter, the Director of Industrial Relations, upon concurrence
of the Department of Finance, may suspend or reduce the fees for
the annual and biennial inspections of conveyances required by
Section 7304 on a one-time basis for that fiscal year in order to
reduce the amount of moneys in the Elevator Safety Account.

end insert

begin insert

begin insert SEC. 45. end insert   

end insert

begin insert Section 10340 of the end insert begin insert Public Contract Code end insert begin insert is amended
to read: end insert

10340.  

(a) Except as provided by subdivision (b), state
agencies shall secure at least three competitive bids or proposals
for each contract.

(b) Three competitive bids or proposals are not required in any
of the following cases:

(1) In cases of emergency where a contract is necessary for the
immediate preservation of the public health, welfare, or safety, or
protection of state property.

(2) When the agency awarding the contract has advertised the
contract in the California State Contracts Register and has solicited
all potential contractors known to the agency, but has received less
than three bids or proposals.

(3)  begin insert (A) end insert begin insert   end insert The contract is with another state agency, a local
governmental entity, an auxiliary organization of the California
State University, an auxiliary organization of a California
community college, a foundation organized to support the Board
of Governors of the California Community Colleges, or an auxiliary
organization of the Student Aid Commission established pursuant
to Section 69522 of the Education Code. These contracts, however,
may not be used to circumvent the competitive bidding
requirements of this article.

begin insert

(B) Notwithstanding subparagraph (A), until January 1, 2019,
an interagency agreement that is in effect pursuant to the amount
appropriated to the Office of Planning and Research under Item
0650-001-0001 of the Budget Act of 2014, including a contract
between the Office of Planning and Research, the Regents of the
University of California, or an auxiliary organization of the
California State University, may include a subcontract not subject
to any competitive bidding requirements of this article for the
limited purpose of researching or developing precision medicine.

end insert

(4) The contract meets the conditions prescribed by the
department pursuant to subdivision (a) of Section 10348.

(5) The contract has been awarded without advertising and
calling for bids pursuant to Section 19404 of the Welfare and
Institutions Code.

(6) Contracts entered into pursuant to Section 14838.5 of the
Government Code.

(7) Contracts for the development, maintenance, administration,
or use of licensing or proficiency testing examinations.

(8) The contract is for services for the operation, maintenance,
repair, or replacement of specialized equipment at facilities of the
State Water Resources Development System, as defined in Section
12931 of the Water Code, and meets the conditions established by
the Department of Water Resources for those contracts.

(9) The contract meets the conditions prescribed by the
Department of Water Resources for contracts subject to Section
10295.6.

(10) Contracts entered into by the Commission on Peace Officer
Standards and Training or the Office of Emergency Services solely
for the services of instructors for public safety training. For the
purpose of this paragraph, “public safety training” includes, but
is not limited to, training related to law enforcement, emergency
medical response, emergency volunteers, and fire responders.

(c) Any agency which has received less than three bids or
proposals on a contract shall document, in a manner prescribed by
the department, the names and addresses of the firms or individuals
it solicited for bids or proposals.

begin insert

begin insert SEC. 46. end insert   

end insert

begin insert Section 10878 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
amended to read: end insert

10878.  

(a) Notwithstanding Sections 10877 and 10951, begin delete on
and after July 1, 1993, end delete the responsibility and authority for the
collection of the following delinquent amounts, and any interest,
penalties, or service fees added thereto, shall be transferred from
the department to the Franchise Tax Board:

(1) Registration fees.

(2) Transfer fees.

(3) License fees.

(4) Use taxes.

(5) Penalties for offenses relating to the standing or parking of
a vehicle for which a notice of parking violation has been served
on the owner, and any administrative service fee added to the
penalty.

begin insert

(6) Unpaid tolls, toll evasion penalties as described in Section
40252 of the Vehicle Code, and any related administrative or
service fees.

end insert begin delete

(6)

end delete

begin insert (7) end insert  Any court-imposed fine or penalty assessment, and any
administrative service fee added thereto, that is subject to collection
by the department.

(b) Any reference in this part to the department in connection
with the duty to collect these amounts shall be deemed a reference
to the Franchise Tax Board.

(c) The amounts collected under subdivision (a) may be
collected in any manner authorized under the law as though they
were a tax imposed under Part 10 (commencing with Section
17001) that is final, including, but not limited to, issuance of an
order and levy under Article 4 (commencing with Section 706.070)
of Chapter 5 of Division 2 of Title 9 of Part 2 of the Code of Civil
Procedure in the manner provided for earnings withholding order
for taxes. Part 10 (commencing with Section 17001), 10.2
(commencing with Section 18401), or 10.7 (commencing with
Section 21001), or any other applicable law shall apply for this
purpose in the same manner and with the same force and effect as
if the language of Part 10, 10.2, or 10.7, or the other applicable
law is incorporated in full into this authority to collect these
amounts, except to the extent that the provision is either
inconsistent with the collection of these amounts or is not relevant
to the collection of these amounts.

(d) Even though the amounts authorized by this section are
collected as though they are taxes, amounts so received by the
Franchise Tax Board shall be deposited into an appropriate fund
or account upon agreement between the Franchise Tax Board and
the department. The amounts shall be distributed by the department
from the appropriate fund or account in accordance with the laws
providing for the deposits and distributions as though the moneys
were received by the department.

(e) For any collection action under this section, the Franchise
Tax Board may utilize the contract authorization, procedures, and
mechanisms available either with respect to the collection of taxes,
interest, additions to tax, and penalties pursuant to Section begin delete 18837
or end delete 19376, or with respect to the collection of the delinquencies by
the department immediately prior to the time this section takes
effect.

(f) The Legislature finds that it is essential for fiscal purposes
that the program authorized by this section be expeditiously
implemented. Accordingly, Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code
shall not apply to any standard, criteria, procedure, determination,
rule, notice, or guideline established or issued by the Franchise
Tax Board in implementing and administering the program required
by this section.

(g) Any standard, criteria, procedure, determination, rule, notice,
or guideline, that is not subject to the provisions of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code pursuant to subdivision (f), shall be
approved by the Franchise Tax Board, itself.

(h) The Franchise Tax Board may enter into any agreements or
contracts necessary to implement and administer the provisions
of this section. The Franchise Tax Board in administering this
section may delegate collection activities to the department. Any
contracts may provide for payment of the contract on the basis of
a percentage of the amount of revenue realized as a result of the
contractor’s services under that contract. However, the Franchise
Tax Board, in administering this part, may not enter into contracts
with private collection agencies as authorized under Section 19377.

begin insert

(i) The amendments made to this section by the act adding this
subdivision shall apply commencing with the effective date of the
act adding this subdivision.

end insert

begin insert

begin insert SEC. 47. end insert   

end insert

begin insert Section 17138.3 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 17138.3. end insert   

(a) For each taxable year beginning on or after July
1, 2015, gross income does not include an amount received as a
loan, loan forgiveness, grant, credit, rebate, voucher, or other
financial incentive issued by the California Residential Mitigation
Program or the California Earthquake Authority to assist a
residential property owner or occupant with expenses paid, or
obligations incurred, for earthquake loss mitigation.

(b) For the purposes of this section, “earthquake loss
mitigation” means an activity that reduces seismic risks to a
residential structure or its contents, or both. For purposes of
structural seismic risk mitigation, a residential structure is a
structure described in subdivision (a) of Section 10087 of the
Insurance Code.

end insert

begin insert

begin insert SEC. 48. end insert   

end insert

begin insert Section 24308.7 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 24308.7. end insert   

(a) For each taxable year beginning on or after July
1, 2015, gross income does not include an amount received as a
loan, loan forgiveness, grant, credit, rebate, voucher, or other
financial incentive issued by the California Residential Mitigation
Program or the California Earthquake Authority to assist a
residential property owner or occupant with expenses paid, or
obligations incurred, for earthquake loss mitigation.

(b) For the purposes of this section, “earthquake loss
mitigation” means an activity that reduces seismic risks to a
residential structure or its contents, or both. For purposes of
structural seismic risk mitigation, a residential structure is a
structure described in subdivision (a) of Section 10087 of the
Insurance Code.

end insert

begin insert

begin insert SEC. 49. end insert   

end insert

begin insert Section 41030 of the end insert begin insert Revenue and Taxation Code end insert begin insert , as
amended by Chapter 926 of the Statutes of 2014, is amended to
read: end insert

41030.  

(a) The Office of Emergency Services shall determine
annually, on or before October 1, to be effective on January 1 of
the following year, a surcharge rate pursuant to subdivision (b)
that it estimates will produce sufficient revenue to fund the current
fiscal year’s 911 costs.

(b) (1) The surcharge rate shall be determined by dividing the
costs (including incremental costs) the Office of Emergency
Services estimates for the current fiscal year of 911 costs approved
pursuant to Article 6 (commencing with Section 53100) of Chapter
1 of Part 1 of Division 2 of Title 5 of the Government Code, less
the available balance in the State Emergency Telephone Number
Account in the General Fund, by its estimate of the charges for
intrastate telephone communications services and VoIP service to
which the surcharge will apply for the period of January 1, 2015,
to December 31, inclusive, of the next succeeding calendar year,
but in no event shall the surcharge rate in any year be greater than
three-quarters of 1 percent nor less than one-half of 1 percent.

(2) Commencing with the calculation made October 1, 2015,
to be effective January 1, 2016, the surcharge shall be determined
by dividing the costs (including incremental costs) the Office of
Emergency Services estimates for the current fiscal year of 911
costs approved pursuant to Article 6 (commencing with Section
53100) of Chapter 1 of Part 1 of Division 2 of Title 5 of the
Government Code, less the available balance in the State
Emergency Telephone Number Account in the General Fund, by
its estimate of the charges for intrastate telephone communications
services, the intrastate portion of prepaid mobile telephony services,
and VoIP service to which the surcharge will apply for the period
of January 1 to December 31, inclusive, of the next succeeding
calendar year, but in no event shall the surcharge rate in any year
be greater than three-quarters of 1 percent or less than one-half of
1 percent. In making its computation of the charges that are
applicable to the intrastate portion of prepaid mobile telephony
services, the Office of Emergency Services shall use the
computation method developed by the Public Utilities Commission
and reported to the Office of Emergency Services pursuant to
subdivisions (a) and (b) of Section 319 of the Public Utilities Code.

(c) When determining the surcharge rates pursuant to this
section, the office shall include the costs it expects to incur to plan,
test, implement, and operate Next Generation 911 technology and
services, including text to 911 service, consistent with the plan
and timeline required by Section 53121 of the Government Code.

(d) The office shall notify the board of the surcharge rate
begin insert imposed under this part, end insert determined pursuant to this section begin insert on or
before October 1 of each year, end insert and the surcharge rate applicable
to prepaid mobile telephony services begin delete by end delete begin insert determined pursuant to
this section for purposes of the prepaid MTS surcharge calculated
under Part 21 (commencing with Section 42001) on or before end insert
October 15 of each year.

(e) At least 30 days prior to determining the surcharge pursuant
to subdivision (a), the Office of Emergency Services shall prepare
a summary of the calculation of the proposed surcharge and make
it available to the public, the Legislature, the 911 Advisory Board,
and on its Internet Web site. The summary shall contain all of the
following:

(1) The prior year revenues to fund 911 costs, including, but
not limited to, revenues from prepaid service.

(2) Projected expenses and revenues from all sources, including,
but not limited to, prepaid service to fund 911 costs.

(3) The rationale for adjustment to the surcharge determined
pursuant to subdivision (b), including, but not limited to, all
impacts from the surcharge collected pursuant to Part 21
(commencing with Section 42001).

(f) This section shall remain in effect only until January 1, 2020,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2020, deletes or extends that date.

begin insert

begin insert SEC. 50. end insert   

end insert

begin insert Section 41032 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
amended to read: end insert

41032.  

Immediately upon notification by the Office of
Emergency Services and fixing the surcharge rate, the board shall
each year no later than November 15 publish in its minutes the
new rate, and it shall notify begin delete by mail end delete every service supplier
registered with it of the new begin delete rate. end delete begin insert rate by a means, or means
determined by the board, that may include, but is not limited to,
mail, electronic mail, or Internet Web site postings. end insert

begin insert

begin insert SEC. 51. end insert   

end insert

begin insert Section 42010 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
amended to read: end insert

42010.  

(a) (1) On and after January 1, 2016, a prepaid MTS
surcharge shall be imposed on each prepaid consumer and shall
be collected by a seller from each prepaid consumer at the time of
each retail transaction in this state. The prepaid MTS surcharge
shall be imposed as a percentage of the sales price of each retail
transaction that occurs in this state.

(2) The prepaid MTS surcharge shall be in lieu of any charges
imposed pursuant to the Emergency Telephone Users Surcharge
Act (Part 20 (commencing with Section 41001)) and the Public
Utilities Commission surcharges for prepaid mobile telephony
services.

(b) The prepaid MTS surcharge shall be annually calculated by
the board by no later than November 1 of each year commencing
November 1, 2015, by adding the following:

(1) The surcharge rate reported pursuant to subdivision (d) of
Section 41030.

(2) The Public Utilities Commission’s reimbursement fee and
telecommunications universal service surcharges, established by
the Public Utilities Commission pursuant to subdivisions (a) and
(b) of Section 319 of the Public Utilities Code.

(c) (1) The board shall post, for each local jurisdiction, the
combined total of the rates of prepaid MTS surcharge and the rate
or rates of local charges, as calculated pursuant to Sections 42102
and 42102.5, that each local jurisdiction has adopted, not later than
December 1 of each year, on its Internet Web site. The posted
combined rate shall be the rate that applies to all retail transactions
during the calendar year beginning April 1 following the posting.

(2) Notwithstanding paragraph (1), if a local agency notifies
the board pursuant to subdivision (d) of Section 42101.5 that the
posted rate is inaccurate or it no longer imposes a local charge or
local charges or that the rate of its local charge or local charges
has decreased, the board shall promptly post a recalculated rate
that is applicable to the jurisdiction of that local agency. The
change shall become operative on the first day of the calendar
quarter commencing more than 60 days from the date the local
agency notifies the board of the inaccuracy or that it no longer
imposes a local charge or that the rate of its local charge has
decreased. Nothing in this section modifies the notice obligations
of Section 799 of the Public Utilities Code. However, beginning
January 1, 2016, the notification and implementation requirements
of paragraphs (5) and (6) of subdivision (a) of Section 799 of the
Public Utilities Code shall not apply to prepaid mobile telephony
services.

(3) The board shall also separately post on its Internet Web site
the individual rates for each of the following:

(A) Each of the Public Utilities Commission surcharges that
make up the Public Utilities Commission surcharge portion of the
prepaid MTS surcharge, as reported pursuant to Section 319 of
the Public Utilities Code.

(B) The begin delete percentage end delete begin insert rate end insert for the emergency telephone users
surcharge reported pursuant to subdivision begin delete (c) end delete begin insert (d) end insert of Section 41030.

(C) Each of the individual local charges reported pursuant to
Section 42101.5.

(4) A seller collecting the prepaid MTS surcharge and local
charges pursuant to this part and Part 21.1 (commencing with
Section 42100) may rely upon the accuracy of the information
posted on the board’s Internet Web site in collecting and remitting
all amounts of the prepaid MTS surcharge and local charges.

(d) (1) Except for amounts retained pursuant to subdivision (e),
and except as provided in subdivision (f) for a seller that is a direct
seller, all amounts of the prepaid MTS surcharge and local charges
collected by sellers shall be remitted to the board pursuant to
Chapter 3 (commencing with Section 42020).

(2) A seller that is authorized to provide lifeline service under
the state lifeline program or federal lifeline program, that sells
prepaid mobile telephony services directly to the prepaid customer,
shall remit the prepaid MTS surcharge to the board, less any
applicable exemption from the surcharge that is applicable to the
retail transaction pursuant to Section 42012.

(e) A seller that is not a direct seller shall be permitted to deduct
and retain an amount equal to 2 percent of the amounts that are
collected by the seller from prepaid consumers for the prepaid
MTS surcharge and local charges, on a pro rata basis, according
to that portion of the revenues collected by the seller for each of
the following:

(1) The emergency telephone users surcharge.

(2) The Public Utilities Commission surcharges.

(3) Local charges.

(f) A direct seller shall remit the prepaid MTS surcharge and
local charges as follows:

(1) That portion of the prepaid MTS surcharge that consists of
the Public Utilities Commission surcharges shall be remitted to
the commission with those reports required by the commission.
begin insert The amounts remitted to the Public Utilities Commission pursuant
to this paragraph shall be deposited into the respective universal
service funds created pursuant to Chapter 1.5 (commencing with
Section 270) of Part 1 of Division 1 of the Public Utilities Code
and to the Public Utilities Commission Utilities Reimbursement
Account described in Chapter 2.5 (commencing with Section 401)
of Part 1 of Division 1 of the Public Utilities Code. end insert

(2) That portion of the prepaid MTS surcharge that consists of
the emergency telephone users surcharge shall be remitted to the
board pursuant to the Emergency Telephone Users Surcharge Act
(Part 20 (commencing with Section 41001)) for those retail
transactions with a prepaid consumer in the begin delete state. end delete begin insert state, with a
return filed with the board using electronic media. The amount
remitted to the board pursuant to this paragraph shall be deposited
into the State Emergency Telephone Number Account in the
General Fund. end insert

(3) Local charges, if applicable, shall be remitted to the local
jurisdiction or local agency imposing the local charge. Remittance
of the local charges shall be separately identified from any other
local taxes or other charges that are remitted to the local jurisdiction
or local entity imposing the local tax or other charge. begin insert The amounts
remitted to the local jurisdiction or local agency imposing the
local charge pursuant to this paragraph shall be deposited into
the respective local jurisdiction or local agency account. end insert

(g) A direct seller shall utilize the amounts posted by the board
pursuant to subdivision (c) when determining what amounts to
remit to the Public Utilities Commission, board, and each local
jurisdiction or local agency.

(h) A prepaid MTS provider shall offer prepaid consumers the
option to make payment for additional prepaid usage directly to
the prepaid MTS provider at the provider’s retail location or
Internet Web site.

(i) The amount of the combined prepaid MTS surcharge and
local charges shall be separately stated on an invoice, receipt, or
other similar document that is provided to the prepaid consumer
of mobile telephony services by the seller, or otherwise disclosed
electronically to the prepaid consumer, at the time of the retail
transaction.

(j) The prepaid MTS surcharge that is required to be collected
by a seller and any amount unreturned to the prepaid consumer of
mobile telephony services that is not owed as part of the surcharge,
but was collected from the prepaid consumer under the
representation by the seller that it was owed as part of the
surcharge, constitute debts owed by the seller to this state. The
local charge shall be collected by a seller, and any amount
unreturned to the prepaid consumer of mobile telephony services
that is not owed as part of the local charge but that was collected
from the prepaid consumer under the representation by the seller
that it was owed as part of the local charge constitutes a debt owed
by the seller jointly to the state, for purposes of collection on behalf
of, and payment to, the local jurisdiction and to the local
jurisdiction imposing that local charge.

(k) A seller that has collected any amount of prepaid MTS
surcharge and local charges in excess of the amount of the
surcharge imposed by this part and actually due from a prepaid
consumer may refund that amount to the prepaid consumer, even
though the surcharge amount has already been paid over to the
board and no corresponding credit or refund has yet been secured.
Any seller making a refund of any charge to a prepaid consumer
may repay therewith the amount of the surcharge paid.

(l) (1) Every prepaid consumer of mobile telephony services
in this state is liable for the prepaid MTS surcharge and any local
charges until they have been paid to this state, except that payment
to a seller registered under this part relieves the prepaid consumer
from further liability for the surcharge and local charges. Any
surcharge collected from a prepaid consumer that has not been
remitted to the board shall be a debt owed to the state by the person
required to collect and remit the surcharge. Any local charge
collected from a prepaid consumer that has not been remitted to
the board shall be a debt owed jointly to the state, for purposes of
collection on behalf of, and payment to, the local jurisdiction and
to the local jurisdiction imposing the local charge by the person
required to collect and remit the local charge. Nothing in this part
shall impose any obligation upon a seller to take any legal action
to enforce the collection of the surcharge or local charge imposed
by this section.

(2) A credit shall be allowed against, but shall not exceed, the
prepaid MTS surcharge and local charges imposed on any prepaid
consumer of mobile telephony services by this part to the extent
that the prepaid consumer has paid emergency telephone users
charges, state utility regulatory commission fees, state universal
service charges, or local charges on the purchase to any other state,
political subdivision thereof, or the District of Columbia. The credit
shall be apportioned to the charges against which it is allowed in
proportion to the amounts of those charges.

(m) (1) A seller is relieved from liability to collect the prepaid
MTS surcharge imposed by this part that became due and payable,
insofar as the base upon which the surcharge is imposed is
represented by accounts that have been found to be worthless and
charged off for income tax purposes by the seller or, if the seller
is not required to file income tax returns, charged off in accordance
with generally accepted accounting principles. A seller that has
previously paid the surcharge may, under rules and regulations
prescribed by the board, take as a deduction on its return the
amount found worthless and charged off by the seller. If any such
accounts are thereafter in whole or in part collected by the seller,
the amount so collected shall be included in the first return filed
after such collection and the surcharge shall be paid with the return.

(2) The board may by regulation promulgate such other rules
with respect to uncollected or worthless accounts as it shall deem
necessary to the fair and efficient administration of this part.

begin insert

begin insert SEC. 52. end insert   

end insert

begin insert Section 42010.7 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 42010.7. end insert   

(a) Commencing January 1, 2017, a seller, other
than a direct seller, with de minimis sales of prepaid mobile
telephony services of less than fifteen thousand dollars ($15,000)
during the previous calendar year is not required to collect the
prepaid MTS surcharge pursuant to Section 42010. The
Department of Finance shall annually review and adjust that de
minimis sales threshold as necessary to minimize program
administration costs and maintain revenues to support program
administration, enforcement, and Public Utilities Commission
public purpose programs and rulemaking activities. Any adjustment
of the de minimuis sales threshold shall become operative on
January 1 of the following calendar year. Nothing in this section
prevents a seller from collecting and remitting the surcharge on
a voluntary basis even if the seller meets the de minimis sales
threshold.

(b) For purposes of this section, the de minimis sales threshold
shall be based on the aggregate of all sales of prepaid mobile
telephone services subject to the local charges at all retail locations
operated by the seller and not the individual sales at each retail
location operated by the seller.

end insert

begin insert

begin insert SEC. 53. end insert   

end insert

begin insert Section 42023 of the end insert begin insert Revenue and Taxation Code end insert begin insert is
amended to read: end insert

42023.  

(a) The Prepaid Mobile Telephony Services Surcharge
Fund is hereby created in the State Treasury. The Prepaid MTS
911 Account and the Prepaid MTS PUC Account are hereby
created in the fund. The Prepaid Mobile Telephony Services
Surcharge Fund shall consist of all surcharges, interest, penalties,
and other amounts collected and paid to the board pursuant to this
part, less payments of refunds and reimbursements to the board
for expenses incurred in the administration and collection of the
prepaid MTS surcharge.

(b) All moneys in the Prepaid Mobile Telephony Services
Surcharge Fund attributable to the prepaid MTS surcharge shall
be deposited as follows:

(1) That portion of the prepaid MTS surcharge that is for the
emergency telephone users surcharge shall be deposited into the
Prepaid MTS 911 Account. All moneys deposited into the Prepaid
MTS 911 Account shall be transferred to the State Emergency
Telephone Number Account in the General begin delete Fund. end delete begin insert Fund and
appropriated pursuant to Article 2 (commencing with Section
41135) of Chapter 7 of Part 20. end insert

(2) That portion of the prepaid MTS surcharge that is for the
Public Utilities Commission surcharges shall be deposited into the
Prepaid MTS PUC Account. All moneys deposited in the Prepaid
MTS PUC Account shall be allocated and transferred to the
respective universal service begin delete funds, end delete begin insert funds end insert created pursuant to
Chapter begin delete 1 end delete begin insert 1.5 end insert (commencing with Section 270) begin delete of, end delete begin insert of Part 1 of
Division 1 of the Public Utilities Code end insert and to the Public Utilities
Commission Utilities Reimbursement begin delete Account, created pursuant
to end delete begin insert Account described in end insert Chapter 2.5 (commencing with Section
401) of, Part 1 of Division 1 of the Public Utilities Code. begin insert The
Public Utilities Commission shall allocate the moneys deposited
into the Prepaid MTS PUC Account to the respective universal
service funds and to the Public Utilities Commission Utilities
Reimbursement Account and shall report to the Controller at the
beginning of each calendar month for the months preceding, or
other period as determined necessary by the Public Utilities
Commission, on its allocation of those funds. end insert

begin insert

begin insert SEC. 54. end insert   

end insert

begin insert Section 42023.5 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 42023.5. end insert   

(a) To provide adequate cashflow for expenses
incurred by the board in the administration and collection of the
prepaid MTS surcharge, the Director of Finance may approve a
short-term loan in the 2015-16 fiscal year from the General Fund
to the Prepaid Mobile Telephony Services Surcharge Fund.

(b) For the purposes of this section, a short-term loan is a
transfer that is made subject to the following conditions:

(1) Any amount loaned is to be repaid in full during the same
fiscal year in which the loan was made, except that the repayment
may be delayed until a date not more than six months after the
date of enactment of the annual Budget Act for the subsequent
fiscal year.

(2) Loans shall be repaid whenever the funds are needed to
meet cash expenditure needs in the loaning fund or account.

end insert

begin insert

begin insert SEC. 55. end insert   

end insert

begin insert Section 42101.7 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 42101.7. end insert   

(a) Commencing January 1, 2017, a seller, other
than a direct seller, with de minimis sales of prepaid mobile
telephony services of less than fifteen thousand dollars ($15,000)
during the previous calendar year is not required to collect local
charges pursuant to Section 42101.5. The Department of Finance
shall annually review and adjust that de minimis sales threshold
as necessary to minimize program administration costs and
maintain revenues to support program administration, enforcement,
and Public Utilities Commission public purpose programs and
rulemaking activities. Any adjustment of the de minimuis sales
threshold shall become operative on January 1 of the following
calendar year. Nothing in this section prevents a seller from
collecting and remitting the surcharge on a voluntary basis even
if the seller meets the de minimis sales threshold.

(b) For purposes of this section, the de minimis sales threshold
shall be based on the aggregate of all sales of prepaid mobile
telephone services subject to the local charges at all retail locations
operated by the seller and not the individual sales at each retail
location operated by the seller.

end insert

begin insert

begin insert SEC. 56. end insert   

end insert

begin insert Section 42104 is added to the end insert begin insert Revenue and Taxation
Code end insert begin insert , to read: end insert

begin insert

begin insert 42104. end insert   

(a) To provide adequate cashflow for expenses incurred
by the board in the administration and collection of the local
charges, the Director of Finance may approve a short-term loan
in the 2015-16 fiscal year from the General Fund to the Local
Charges for Prepaid Mobile Telephony Services Fund.

(b) For the purposes of this section, a short-term loan is a
transfer that is made subject to the following conditions:

(1) Any amount loaned is to be repaid in full during the same
fiscal year in which the loan was made, except that the repayment
may be delayed until a date not more than six months after the
date of enactment of the annual Budget Act for the subsequent
fiscal year.

(2) Loans shall be repaid whenever the funds are needed to
meet cash expenditure needs in the loaning fund or account.

end insert

begin insert

begin insert SEC. 57. end insert   

end insert begin insert

No reimbursement is required by this act pursuant
to Section 6 of Article XIII B of the California Constitution because
a local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level of service mandated by this act or because costs that may be
incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or
infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.

end insert

begin insert

begin insert SEC. 58. end insert   

end insert begin insert

This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact statutory
changes relating to the Budget Act of 2015.

end delete