Amended in Assembly August 24, 2015

Senate BillNo. 102


Introduced by Committee on Budget and Fiscal Review

January 9, 2015


begin deleteAn act relating to the Budget Act of 2015. end deletebegin insertAn act to amend Sections 11555, 11556, 11565.5, 19825.5, 22866, and 100505 of the Government Code, to amend Section 1233.10 of the Penal Code, and to amend Sections 17138.3 and 24308.7 of 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 102, as amended, Committee on Budget and Fiscal Review. begin deleteBudget Act of 2015. end deletebegin insertState government.end insert

begin insert

(1) Existing law provides for the salaries of the chairperson and commissioners of the Board of Parole Hearings and the chairperson and members of the Occupational Safety and Health Appeals Board, and limits increases to those salaries by, among other restrictions, prohibiting a salary increase exceeding the percentage of the general increase in the salary rates and ranges for classifications provided during that fiscal year for state employees designated as managerial.

end insert
begin insert

This bill would instead authorize the Department of Human Resources to set and adjust, as needed, the annual compensation of these state officers based on specified factors. The bill would prohibit compensation for these state officers from exceeding 125% of the compensation recommended to be paid to the Governor by the California Citizens Compensation Commission, and would require the department to notify the Legislature of the compensation level implemented within 30 days of the effective date of the proposed compensation adjustment.

end insert
begin insert

(2) The Public Employees’ Medical and Hospital Care Act requires, among other things, the Board of Administration of the Public Employees’ Retirement System to report to the Legislature and the Director of Finance, on November 1, 2015, and annually thereafter, on specific components of the health benefits program.

end insert
begin insert

This bill would remove the requirement for the board to report on November 1, 2015, and instead require the board to report beginning on November 1, 2016, and annually thereafter.

end insert
begin insert

(3) Existing law established the California Health Benefit Exchange to be governed by an executive board consisting of 5 members who are residents of California. Existing law requires the board to establish and use a competitive process to select participating carriers and any other contractors, and exempts any contract entered into pursuant to these provisions from the State Contract Act.

end insert
begin insert

This bill would make a nonsubstantive change to this provision.

end insert
begin insert

(4) Existing law requires a county board of supervisors, upon an agreement to accept specified funding, to develop and administer a competitive grant program in collaboration with the county’s Community Corrections Partnership to fund community recidivism and crime reduction services. Existing law allocates funding to counties from the Budget Act of 2015 pursuant to a specified allocation schedule for this purpose and requires the board of supervisors to grant the funds to community recidivism and crime reduction service providers, as defined. Based on the population of the county, existing law limits the maximum amount of funds that may be awarded to a service provider to between $10,000 and $100,000, and further limits the total amount of grants that may be awarded to a single provider by all counties to $100,000.

end insert
begin insert

This bill would make the above-specified limitation on the maximum amount that may be awarded to a service provider applicable to each Budget Act allocation.

end insert
begin insert

(5) The Personal Income Tax Law and the Corporation Tax Law provide for various exclusions from the calculation of gross income in determining tax liability, and specifically exclude from that calculation, for taxable years beginning on or after July 1, 2015, 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 relating to earthquake loss mitigation. These existing laws define “earthquake loss mitigation” as an activity that reduces seismic risks to a residential structure or its contents, or both, and defines a “residential structure” by reference to another law, relating to policies of residential property insurance.

end insert
begin insert

This bill would remove the reference to a loan from the listing of excluded items, and revise the definition of “residential structure” to also include a residential building of not fewer than 2, but nor more than 10, dwelling units.

end insert
begin insert

(6) The bill would make an appropriation from the State Department of Public Health Licensing and Certification Program Fund of $400,000 to the Long-Term Care Ombudsman Program for the purposes of Program 3900-Supportive Services, as specified in the Budget Act of 2015.

end insert
begin insert

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

end insert
begin delete

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

end delete

Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

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

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 11555 of the end insertbegin insertGovernment Codeend insertbegin insert is
2amended to read:end insert

3

11555.  

(a) Effective January 1, 1988, an annual salary of
4seventy-one thousand five hundred eighty-seven dollars ($71,587)
5shall be paid to the following:

6(1) Chairperson of the Board of Parole Hearings.

7(2) Chairperson of the Occupational Safety and Health Appeals
8Board.

9(b) The annual compensation provided by this section shall be
10increased in any fiscal year in which a general salary increase is
11provided for state employees. The amount of the increase provided
12by this section shall be comparable to, but shall not exceed, the
13percentage of the general salary increases provided for state
14employees during that fiscal year.

15(c) Notwithstanding subdivision (b), any salary increase is
16subject to Sectionbegin delete 11565.5.end deletebegin insert 19825.5.end insert

17begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 11556 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
18read:end insert

P4    1

11556.  

(a) Effective January 1, 1988, an annual salary of
2sixty-nine thousand seventy-six dollars ($69,076) shall be paid to
3each of the following:

4(1) Commissioner of the Board of Parole Hearings.

5(2) Member of the Occupational Safety and Health Appeals
6Board.

7(b) The annual compensation provided by this section shall be
8increased in any fiscal year in which a general salary increase is
9provided for state employees. The amount of the increase provided
10by this section shall be comparable to, but shall not exceed, the
11percentage of the general salary increases provided for state
12employees during that fiscal year.

13(c) Notwithstanding subdivision (b), any salary increase is
14subject to Sectionbegin delete 11565.5.end deletebegin insert 19825.5.end insert

15begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 11565.5 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
16to read:end insert

17

11565.5.  

Notwithstanding Sections 11553, 11553.5,begin delete 11555,
1811556,end delete
11563.7, and 11564, with respect to any salary increase
19made after January 1, 1997, for nonelected members of state boards
20and commissions specified in Sections 11553, 11553.5,begin delete 11555,
2111556,end delete
11563.7, and 11564, the annual compensation provided by
22these sections shall not automatically increase but may be increased
23in any fiscal year in which there is a general increase in the salary
24ranges and rates for state civil service classifications. The amount
25of the increase, as determined by the Department of Human
26Resources and subject to the appropriation of funds by the
27Legislature in the annual Budget Act, shall not exceed the
28percentage of the general increase in the salary rates and ranges
29for classifications provided during that fiscal year for state
30employees designated as managerial.

31begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 19825.5 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
32to read:end insert

33

19825.5.  

(a) Notwithstanding Sections 11550, 11552,begin delete and
3411554,end delete
begin insert 11554, 11555, and 11556,end insert the department shall set and
35adjust, as needed, the annual compensation of the officers and
36employees listed in Sections 11550, 11552,begin delete and 11554.end deletebegin insert 11554,
3711555, and 11556.end insert

38(b) When setting or adjusting the annual compensation of the
39employees described in subdivision (a), the department shall
40consider the size and scope of the organization, compensation paid
P5    1to other similar positions in other public jurisdictions, the scope
2of responsibility of the position, the need to avoid salary
3compaction, and other factors appropriate to the determination of
4compensation necessary to recruit and retain qualified employees
5in leadership positions for the state. The compensation shall not
6exceed 125 percent of the compensation recommended to be paid
7to the Governor of the State of California by the California Citizens
8Compensation Commission.

9(c) The department shall notify the Legislature of the
10compensation level implemented for any of the employees
11described in subdivision (a) within 30 days of the effective date
12of the proposed compensation adjustment.

13begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 22866 of the end insertbegin insertGovernment Codeend insertbegin insert is amended to
14read:end insert

15

22866.  

(a) The board shall report to the Legislature and the
16Director of Financebegin delete annually,end delete onbegin insert or beforeend insert November 1,begin insert 2016, and
17annually thereafter,end insert
regarding the health benefits program. The
18report shall include, but not be limited to the following:

19(1) General overview of the health benefits program, including,
20but not limited to, the following:

21(A) Description of health plans and benefits provided, including
22essential and nonessential benefits as required by state and federal
23law, member expected out-of-pocket expenses, and actuarial value
24by metal tier as defined by the federal Patient Protection and
25Affordable Care Act (Public Law 111-148), as amended by the
26federal Health Care and Education Reconciliation Act of 2010
27(Public Law 111-152).

28(B) Geographic coverage.

29(C) Historic enrollment information by basic and Medicare
30plans, by state and contract agencies, by active and retired
31membership, and by subscriber and dependent tier.

32(D) Historic expenditures by basic and Medicare plans, by state
33and contract agencies, by active and retired membership, and by
34subscriber and dependent tier.

35(2) Reconciliation of premium increases or decreases from the
36prior plan year, and the reasons for those changes.

37(A) Description of benefit design and benefit changes, including
38prescription drug coverage, by plan. The description shall detail
39whether benefit changes were required by statutory mandate,
40federal law, or an exercise of the board’s discretion, the costs or
P6    1savings of the benefit change, and the impact of how the changes
2fit into a broader strategy.

3(B) Discussion of risk.

4(C) Description of medical trend changes in aggregate service
5categories for each plan. The aggregate service categories used
6shall include the standard categories of information collected by
7the board, consisting of the following: inpatient, emergency room,
8ambulatory surgery, office, ambulatory radiology, ambulatory lab,
9mental health and substance abuse, other professional,
10prescriptions, and all other service categories.

11(D) Reconciliation of past year premiums against actual
12enrollments, revenues, and accounts receivables.

13(3) Overall member health as reflected by data on chronic
14conditions.

15(4) The impact of federal subsidies or contributions to the health
16care of members, including Medicare Part A, Part B, Part C, or
17Part D, low-income subsidies, or other federal program.

18(5) The cost of benefits beyond Medicare contained in the
19board’s Medicare supplemental plans.

20(6) A description of plan quality performance and member
21satisfaction, including, but not limited to, the following:

22(A) The Healthcare Effectiveness Data and Information Set,
23referred to as HEDIS.

24(B) The Medicare star rating for Medicare supplemental plans.

25(C) The degree of satisfaction of members and annuitants with
26the health benefit plans and with the quality of the care provided,
27to the extent the board surveys participants.

28(D) The level of accessibility to preferred providers for rural
29members who do not have access to health maintenance
30organizations.

31(E) Other applicable quality measurements collected by the
32board as part of the board’s health plan contracts.

33(7) A description of risk assessment and risk mitigation policy
34related to the board’s self-funded and flex-funded plan offerings,
35including, but not limited to the following:

36(A) Reserve levels and their adequacy to mitigate plan risk.

37(B) The expected change in reserve levels and the factors leading
38to this change.

39(C) Policies to reduce excess reserves or rebuild inadequate
40reserves.

P7    1(D) Decisions to lower premiums with excess reserves.

2(E) The use of reinsurance and other alternatives to maintaining
3reserves.

4(8) Description and reconciliation of administrative
5expenditures, including, but not limited to, the following:

6(A) Organization and staffing levels, including salaries, wages,
7and benefits.

8(B) Operating expenses and equipment expenditure items,
9including, but not limited to, internal and external consulting and
10intradepartmental transfers.

11(C) Funding sources.

12(D) Investment strategies, historic investment performance, and
13expected investment returns of the Public Employees’ Contingency
14Reserve Fund and the Public Employees’ Health Care Fund.

15(9) Changes in strategic direction and major policy initiatives.

16(b) A report submitted pursuant to subdivision (a) shall be
17provided in compliance with Section 9795.

18begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 100505 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
19to read:end insert

20

100505.  

(a) The board shall establish and use a competitive
21process to select participating carriers and any other contractors
22under this title. Any contract entered into pursuant to this title shall
23be exempt frombegin delete Chapter 1end deletebegin insert Part 2end insert (commencing with Section
2410100) ofbegin delete Part 2 ofend delete Division 2 of the Public Contract Code, and
25shall be exempt from the review or approval of any division of the
26Department of General Services. The board shall adopt a Health
27Benefit Exchange Contracting Manual incorporating procurement
28and contracting policies and procedures that shall be followed by
29the Exchange. The policies and procedures in the manual shall be
30substantially similar to the provisions contained in the State
31Contracting Manual.

32(b) The adoption, amendment, or repeal of a regulation by the
33board to implement this section, including the adoption of a manual
34pursuant to subdivision (a) and any procurement process conducted
35by the Exchange in accordance with the manual, is exempt from
36the rulemaking provisions of the Administrative Procedure Act
37(Chapter 3.5 (commencing with Section 11340) of Part 1 of
38Division 3 of Title 2).

39begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 1233.10 of the end insertbegin insertPenal Codeend insertbegin insert is amended to read:end insert

P8    1

1233.10.  

(a) Upon agreement to accept funding from the
2Recidivism Reduction Fund, created in Section 1233.9, a county
3board of supervisors, in collaboration with the county’s Community
4Corrections Partnership, shall develop, administer, and collect and
5submit data to the Board of State and Community Corrections
6regarding a competitive grant program intended to fund community
7recidivism and crime reduction services, including, but not limited
8to, delinquency prevention, homelessness prevention, and reentry
9services.

10(1) Commencing with the 2014-15 fiscal year, the funding shall
11be allocated to counties by the State Controller’s Office from Item
125227-101-3259 of Section 2.00 of the Budget Act of 2014
13according to the following schedule:


14

 

Alameda$  250,000
Alpine$   10,000
Amador$   10,000
Butte$   50,000
Calaveras$   10,000
Colusa$   10,000
Contra Costa$  250,000
Del Norte$   10,000
El Dorado$   50,000
Fresno$  250,000
Glenn$   10,000
Humboldt$   50,000
Imperial$   50,000
Inyo$   10,000
Kern$  250,000
Kings$   50,000
Lake$   25,000
Lassen$   10,000
Los Angeles$ 1,600,000
Madera$   50,000
Marin$   50,000
Mariposa$   10,000
Mendocino$   25,000
Merced$   50,000
Modoc$   10,000
Mono$   10,000
Monterey$  100,000
Napa$   50,000
Nevada$   25,000
Orange$  500,000
Placer$   50,000
Plumas$   10,000
Riverside$  500,000
Sacramento$  250,000
San Benito$   25,000
San Bernardino$  500,000
San Diego$  500,000
San Francisco$  250,000
San Joaquin$  250,000
San Luis Obispo$   50,000
San Mateo$  250,000
Santa Barbara$  100,000
Santa Clara$  500,000
Santa Cruz$   50,000
Shasta$   50,000
Sierra$   10,000
Siskiyou$   10,000
Solano$  100,000
Sonoma$  100,000
Stanislaus$  100,000
Sutter$   25,000
Tehama$   25,000
Trinity$   10,000
Tulare$  100,000
Tuolumne$   25,000
Ventura$  250,000
Yolo$   50,000
Yuba$   25,000
P9   3338P9   17

 

34(2) Commencing with the 2015-16 fiscal year, the funding shall
35be allocated to counties by the State Controller’s Office from Item
365227-101-3259 of Section 2.00 of the Budget Act of 2015
37according to the following schedule:

 

Alameda$  125,000
Alpine$    5,000
Amador$    5,000
Butte$   25,000
Calaveras$    5,000
Colusa$    5,000
Contra Costa$  125,000
Del Norte$    5,000
El Dorado$   25,000
Fresno$  125,000
Glenn$    5,000
Humboldt$   25,000
Imperial$   25,000
Inyo$    5,000
Kern$  125,000
Kings$   25,000
Lake$   12,500
Lassen$    5,000
Los Angeles$  800,000
Madera$   25,000
Marin$   25,000
Mariposa$    5,000
Mendocino$   12,500
Merced$   25,000
Modoc$    5,000
Mono$    5,000
Monterey$   50,000
Napa$   25,000
Nevada$   12,500
Orange$  250,000
Placer$   25,000
Plumas$    5,000
Riverside$  250,000
Sacramento$  125,000
San Benito$   12,500
San Bernardino$  250,000
San Diego$  250,000
San Francisco$  125,000
San Joaquin$  125,000
San Luis Obispo$   25,000
San Mateo$  125,000
Santa Barbara$   50,000
Santa Clara$  250,000
Santa Cruz$   25,000
Shasta$   25,000
Sierra$    5,000
Siskiyou$    5,000
Solano$   50,000
Sonoma$   50,000
Stanislaus$   50,000
Sutter$   12,500
Tehama$   12,500
Trinity$    5,000
Tulare$   50,000
Tuolumne$   12,500
Ventura$  125,000
Yolo$   25,000
Yuba$   12,500
P9   17

 

18(b) For purposes of this section, “community recidivism and
19crime reduction service provider” means a nongovernmental entity
20or a consortium or coalition of nongovernmental entities, that
21provides community recidivism and crime reduction services, as
22described in paragraph (2) of subdivision (c), to persons who have
23been released from the state prison, a county jail, a juvenile
24 detention facility, who are under the supervision of a parole or
25probation department, or any other person at risk of becoming
26involved in criminal activities.

27(c) (1) A community recidivism and crime reduction service
28provider shall have a demonstrated history of providing services,
29as described in paragraph (2), to the target population during the
30five years immediately prior to the application for a grant awarded
31pursuant to this section.

32(2) A community recidivism and crime reduction service
33provider shall provide services that are designed to enable persons
34to whom the services are provided to refrain from engaging in
35crime, reconnect with their family members, and contribute to their
36communities. Community recidivism and crime reduction services
37may include all of the following:

38(A) Self-help groups.

39(B) Individual or group assistance with basic life skills.

40(C) Mentoring programs.

P12   1(D) Academic and educational services, including, but not
2limited to, services to enable the recipient to earn his or her high
3school diploma.

4(E) Job training skills and employment.

5(F) Truancy prevention programs.

6(G) Literacy programs.

7(H) Any other service that advances community recidivism and
8crime reduction efforts, as identified by the county board of
9supervisors and the Community Corrections Partnership.

10(I) Individual or group assistance with referrals for any of the
11following:

12(i) Mental and physical health assessments.

13(ii) Counseling services.

14(iii) Education and vocational programs.

15(iv) Employment opportunities.

16(v) Alcohol and drug treatment.

17(vi) Health, wellness, fitness, and nutrition programs and
18services.

19(vii) Personal finance and consumer skills programs and
20services.

21(viii) Other personal growth and development programs to
22 reduce recidivism.

23(ix) Housing assistance.

24(d) Pursuant to this section and upon agreement to accept
25funding from the Recidivism Reduction Fund, the board of
26supervisors, in collaboration with the county’s Community
27Corrections Partnership, shall grant funds allocated to the county,
28as described in subdivision (a), to community recidivism and crime
29reduction service providers based on the needs of their community.

30(e) (1) The amount awarded to each community recidivism and
31crime reduction service provider by a county shall be based on the
32population of the county, as projected by the Department of
33Finance, and shall not exceed thebegin delete following:end deletebegin insert following for each
34Budget Act allocation:end insert

35(A) One hundred thousand dollars ($100,000) in a county with
36a population of over 4,000,000 people.

37(B) Fifty thousand dollars ($50,000) in a county with a
38population of 700,000 or more people but less than 4,000,000
39people.

P13   1(C) Twenty five thousand dollars ($25,000) in a county with a
2population of 400,000 or more people but less than 700,000 people.

3(D) Ten thousand dollars ($10,000) in a county with a population
4of less than 400,000 people.

5(2) The total amount of grants awarded to a single community
6recidivism and crime reduction service provider by all counties
7pursuant to this section shall not exceed one hundred thousand
8dollarsbegin delete ($100,000).end deletebegin insert ($100,000) per Budget Act allocation.end insert

9(f) The board of supervisors, in collaboration with the county’s
10Community Corrections Partnership, shall establish minimum
11requirements, funding criteria, and procedures for the counties to
12award grants consistent with the criteria established in this section.

13(g) A community recidivism and crime reduction service
14provider that receives a grant under this section shall report to the
15county board of supervisors or the Community Corrections
16Partnership on the number of individuals served and the types of
17services provided, consistent with paragraph (2) of subdivision
18(c). The board of supervisors or the Community Corrections
19Partnership shall report to the Board of State and Community
20Corrections any information received under this subdivision from
21grant recipients.

22(h) Of the total amount granted to a county, up to 5 percent may
23be withheld by the board of supervisors or the Community
24Corrections Partnership for the payment of administrative costs.

25(i) Any funds allocated to a county under this section shall be
26available for expenditure for a period of four years and any
27unexpended funds shall revert to the state General Fund at the end
28of the four-year period.

29begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 17138.3 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
30amended to read:end insert

31

17138.3.  

(a) For each taxable year beginning on or after July
321, 2015, gross income does not include an amount received as a
33begin delete loan,end delete loan forgiveness, grant, credit, rebate, voucher, or other
34financial incentive issued by the California Residential Mitigation
35Program or the California Earthquake Authority to assist a
36residential property owner or occupant with expenses paid, or
37obligations incurred, for earthquake loss mitigation.

38(b) For the purposes of this section, “earthquake loss mitigation”
39means an activity that reduces seismic risks to a residential
40structure or its contents, or both. For purposes of structural seismic
P14   1risk mitigation, a residential structure isbegin delete a structure described in
2subdivision (a) of Section 10087 of the Insurance Code.end delete
begin insert either of
3the following:end insert

begin insert

4(1) A structure described in subdivision (a) of Section 10087 of
5the Insurance Code.

end insert
begin insert

6(2) A residential building of not fewer than 2, but not more than
710, dwelling units.

end insert
8begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 24308.7 of the end insertbegin insertRevenue and Taxation Codeend insertbegin insert is
9amended to read:end insert

10

24308.7.  

(a) For each taxable year beginning on or after July
111, 2015, gross income does not include an amount received as a
12begin delete loan,end delete loan forgiveness, grant, credit, rebate, voucher, or other
13financial incentive issued by the California Residential Mitigation
14Program or the California Earthquake Authority to assist a
15residential property owner or occupant with expenses paid, or
16obligations incurred, for earthquake loss mitigation.

17(b) For the purposes of this section, “earthquake loss mitigation”
18means an activity that reduces seismic risks to a residential
19structure or its contents, or both. For purposes of structural seismic
20risk mitigation, a residential structure isbegin delete a structure described in
21subdivision (a) of Section 10087 of the Insurance Code.end delete
begin insert either of
22the following:end insert

begin insert

23(1) A structure described in subdivision (a) of Section 10087 of
24the Insurance Code.

end insert
begin insert

25(2) A residential building of not fewer than 2, but not more than
2610, dwelling units.

end insert
27begin insert

begin insertSEC. 10.end insert  

end insert
begin insert

Item 4170-101-3098 is added to Section 2.00 of the
28Budget Act of 2015, and the amount of four hundred thousand
29dollars ($400,000) is hereby appropriated from the State
30Department of Public Health Licensing and Certification Program
31Fund to this item for Program 3900-Supportive Services, for the
32Long-Term Care Ombudsman Program.

end insert
33begin insert

begin insertSEC. 11.end insert  

end insert
begin insert

This act is a bill providing for appropriations related
34to the Budget Bill within the meaning of subdivision (e) of Section
3512 of Article IV of the California Constitution, has been identified
36as related to the budget in the Budget Bill, and shall take effect
37immediately.

end insert
begin delete
P15   1

SECTION 1.  

It is the intent of the Legislature to enact statutory
2changes relating to the Budget Act of 2015.

end delete


O

    98