Amended in Assembly September 4, 2015

Amended in Assembly August 24, 2015

Senate BillNo. 102


Introduced by Committee on Budget and Fiscal Review

January 9, 2015


An 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,begin insert and toend insertbegin insert add Item 4170-101-3098 to Section 2.00 of the Budget Act of 2015,end insert relating to state government, and making an appropriation therefor, to take effect immediately, bill related to the budget.

LEGISLATIVE COUNSEL’S DIGEST

SB 102, as amended, Committee on Budget and Fiscal Review. State government.

(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.

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.

(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.

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.

(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.

This bill would make a nonsubstantive change to this provision.

(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.

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.

(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.

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.

(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.

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

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

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

P3    1

SECTION 1.  

Section 11555 of the Government Code is
2amended to read:

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 Section 19825.5.

17

SEC. 2.  

Section 11556 of the Government Code is amended
18to read:

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 Section 19825.5.

15

SEC. 3.  

Section 11565.5 of the Government Code is amended
16to read:

17

11565.5.  

Notwithstanding Sections 11553, 11553.5, 11563.7,
18and 11564, with respect to any salary increase made after January
191, 1997, for nonelected members of state boards and commissions
20specified in Sections 11553, 11553.5, 11563.7, and 11564, the
21annual compensation provided by these sections shall not
22automatically increase but may be increased in any fiscal year in
23which there is a general increase in the salary ranges and rates for
24state civil service classifications. The amount of the increase, as
25determined by the Department of Human Resources and subject
26to the appropriation of funds by the Legislature in the annual
27Budget Act, shall not exceed the percentage of the general increase
28in the salary rates and ranges for classifications provided during
29that fiscal year for state employees designated as managerial.

30

SEC. 4.  

Section 19825.5 of the Government Code is amended
31to read:

32

19825.5.  

(a) Notwithstanding Sections 11550, 11552, 11554,
3311555, and 11556, the department shall set and adjust, as needed,
34the annual compensation of the officers and employees listed in
35Sections 11550, 11552, 11554, 11555, and 11556.

36(b) When setting or adjusting the annual compensation of the
37employees described in subdivision (a), the department shall
38consider the size and scope of the organization, compensation paid
39to other similar positions in other public jurisdictions, the scope
40of responsibility of the position, the need to avoid salary
P5    1compaction, and other factors appropriate to the determination of
2compensation necessary to recruit and retain qualified employees
3in leadership positions for the state. The compensation shall not
4exceed 125 percentbegin insert (125%)end insert of the compensation recommended to
5be paid to the Governor of the State of California by the California
6Citizens Compensation Commission.

7(c) The department shall notify the Legislature of the
8compensation level implemented for any of the employees
9described in subdivision (a) within 30 days of the effective date
10of the proposed compensation adjustment.

11

SEC. 5.  

Section 22866 of the Government Code is amended
12to read:

13

22866.  

(a) The board shall report to the Legislature and the
14Director of Finance on or before November 1, 2016, and annually
15thereafter, regarding the health benefits program. The report shall
16include, but not be limited to the following:

17(1) General overview of the health benefits program, including,
18but not limited to, the following:

19(A) Description of health plans and benefits provided, including
20essential and nonessential benefits as required by state and federal
21law, member expected out-of-pocket expenses, and actuarial value
22by metal tier as defined by the federal Patient Protection and
23Affordable Care Act (Public Law 111-148), as amended by the
24federal Health Care and Education Reconciliation Act of 2010
25(Public Law 111-152).

26(B) Geographic coverage.

27(C) Historic enrollment information by basic and Medicare
28plans, by state and contract agencies, by active and retired
29membership, and by subscriber and dependent tier.

30(D) Historic expenditures by basic and Medicare plans, by state
31and contract agencies, by active and retired membership, and by
32subscriber and dependent tier.

33(2) Reconciliation of premium increases or decreases from the
34prior plan year, and the reasons for those changes.

35(A) Description of benefit design and benefit changes, including
36prescription drug coverage, by plan. The description shall detail
37whether benefit changes were required by statutory mandate,
38federal law, or an exercise of the board’s discretion, the costs or
39savings of the benefit change, and the impact of how the changes
40fit into a broader strategy.

P6    1(B) Discussion of risk.

2(C) Description of medical trend changes in aggregate service
3categories for each plan. The aggregate service categories used
4shall include the standard categories of information collected by
5the board, consisting of the following: inpatient, emergency room,
6ambulatory surgery, office, ambulatory radiology, ambulatory lab,
7mental health and substance abuse, other professional,
8prescriptions, and all other service categories.

9(D) Reconciliation of past year premiums against actual
10enrollments, revenues, and accounts receivables.

11(3) Overall member health as reflected by data on chronic
12conditions.

13(4) The impact of federal subsidies or contributions to the health
14care of members, including Medicare Part A, Part B, Part C, or
15Part D, low-income subsidies, or other federal program.

16(5) The cost of benefits beyond Medicare contained in the
17board’s Medicare supplemental plans.

18(6) A description of plan quality performance and member
19satisfaction, including, but not limited to, the following:

20(A) The Healthcare Effectiveness Data and Information Set,
21referred to as HEDIS.

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

23(C) The degree of satisfaction of members and annuitants with
24the health benefit plans and with the quality of the care provided,
25to the extent the board surveys participants.

26(D) The level of accessibility to preferred providers for rural
27members who do not have access to health maintenance
28organizations.

29(E) Other applicable quality measurements collected by the
30board as part of the board’s health plan contracts.

31(7) A description of risk assessment and risk mitigation policy
32related to the board’s self-funded and flex-funded plan offerings,
33including, but not limited to the following:

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

35(B) The expected change in reserve levels and the factors leading
36to this change.

37(C) Policies to reduce excess reserves or rebuild inadequate
38reserves.

39(D) Decisions to lower premiums with excess reserves.

P7    1(E) The use of reinsurance and other alternatives to maintaining
2reserves.

3(8) Description and reconciliation of administrative
4expenditures, including, but not limited to, the following:

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

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

10(C) Funding sources.

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

14(9) Changes in strategic direction and major policy initiatives.

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

17

SEC. 6.  

Section 100505 of the Government Code is amended
18to read:

19

100505.  

(a) The board shall establish and use a competitive
20process to select participating carriers and any other contractors
21under this title. Any contract entered into pursuant to this title shall
22be exempt from Part 2 (commencing with Section 10100) of
23Division 2 of the Public Contract Code, and shall be exempt from
24the review or approval of any division of the Department of General
25Services. The board shall adopt a Health Benefit Exchange
26Contracting Manual incorporating procurement and contracting
27policies and procedures that shall be followed by the Exchange.
28The policies and procedures in the manual shall be substantially
29similar to the provisions contained in the State Contracting Manual.

30(b) The adoption, amendment, or repeal of a regulation by the
31board to implement this section, including the adoption of a manual
32pursuant to subdivision (a) and any procurement process conducted
33by the Exchange in accordance with the manual, is exempt from
34the rulemaking provisions of the Administrative Procedure Act
35(Chapter 3.5 (commencing with Section 11340) of Part 1 of
36Division 3 of Title 2).

37

SEC. 7.  

Section 1233.10 of the Penal Code is amended to read:

38

1233.10.  

(a) Upon agreement to accept funding from the
39Recidivism Reduction Fund, created in Section 1233.9, a county
40board of supervisors, in collaboration with the county’s Community
P8    1Corrections Partnership, shall develop, administer, and collect and
2submit data to the Board of State and Community Corrections
3regarding a competitive grant program intended to fund community
4recidivism and crime reduction services, including, but not limited
5to, delinquency prevention, homelessness prevention, and reentry
6services.

7(1) Commencing with the 2014-15 fiscal year, the funding shall
8be allocated to counties by the State Controller’s Office from Item
95227-101-3259 of Section 2.00 of the Budget Act of 2014
10according to the following schedule:


11

 

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   3035P9   14

 

31(2) Commencing with the 2015-16 fiscal year, the funding shall
32be allocated to counties by the State Controller’s Office from Item
335227-101-3259 of Section 2.00 of the Budget Act of 2015
34according 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   14

 

15(b) For purposes of this section, “community recidivism and
16crime reduction service provider” means a nongovernmental entity
17or a consortium or coalition of nongovernmental entities, that
18provides community recidivism and crime reduction services, as
19described in paragraph (2) of subdivision (c), to persons who have
20been released from the state prison, a county jail, a juvenile
21 detention facility, who are under the supervision of a parole or
22probation department, or any other person at risk of becoming
23involved in criminal activities.

24(c) (1) A community recidivism and crime reduction service
25provider shall have a demonstrated history of providing services,
26as described in paragraph (2), to the target population during the
27five years immediately prior to the application for a grant awarded
28pursuant to this section.

29(2) A community recidivism and crime reduction service
30provider shall provide services that are designed to enable persons
31to whom the services are provided to refrain from engaging in
32crime, reconnect with their family members, and contribute to their
33communities. Community recidivism and crime reduction services
34may include all of the following:

35(A) Self-help groups.

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

37(C) Mentoring programs.

38(D) Academic and educational services, including, but not
39limited to, services to enable the recipient to earn his or her high
40school diploma.

P12   1(E) Job training skills and employment.

2(F) Truancy prevention programs.

3(G) Literacy programs.

4(H) Any other service that advances community recidivism and
5crime reduction efforts, as identified by the county board of
6supervisors and the Community Corrections Partnership.

7(I) Individual or group assistance with referrals for any of the
8following:

9(i) Mental and physical health assessments.

10(ii) Counseling services.

11(iii) Education and vocational programs.

12(iv) Employment opportunities.

13(v) Alcohol and drug treatment.

14(vi) Health, wellness, fitness, and nutrition programs and
15services.

16(vii) Personal finance and consumer skills programs and
17services.

18(viii) Other personal growth and development programs to
19 reduce recidivism.

20(ix) Housing assistance.

21(d) Pursuant to this section and upon agreement to accept
22funding from the Recidivism Reduction Fund, the board of
23supervisors, in collaboration with the county’s Community
24Corrections Partnership, shall grant funds allocated to the county,
25as described in subdivision (a), to community recidivism and crime
26reduction service providers based on the needs of their community.

27(e) (1) The amount awarded to each community recidivism and
28crime reduction service provider by a county shall be based on the
29population of the county, as projected by the Department of
30Finance, and shall not exceed the following for each Budget Act
31allocation:

32(A) One hundred thousand dollars ($100,000) in a county with
33a population of over 4,000,000 people.

34(B) Fifty thousand dollars ($50,000) in a county with a
35population of 700,000 or more people but less than 4,000,000
36people.

37(C) Twenty five thousand dollars ($25,000) in a county with a
38population of 400,000 or more people but less than 700,000 people.

39(D) Ten thousand dollars ($10,000) in a county with a population
40of less than 400,000 people.

P13   1(2) The total amount of grants awarded to a single community
2recidivism and crime reduction service provider by all counties
3pursuant to this section shall not exceed one hundred thousand
4dollars ($100,000) per Budget Act allocation.

5(f) The board of supervisors, in collaboration with the county’s
6Community Corrections Partnership, shall establish minimum
7requirements, funding criteria, and procedures for the counties to
8award grants consistent with the criteria established in this section.

9(g) A community recidivism and crime reduction service
10provider that receives a grant under this section shall report to the
11county board of supervisors or the Community Corrections
12Partnership on the number of individuals served and the types of
13services provided, consistent with paragraph (2) of subdivision
14(c). The board of supervisors or the Community Corrections
15Partnership shall report to the Board of State and Community
16Corrections any information received under this subdivision from
17grant recipients.

18(h) Of the total amount granted to a county, up to 5 percent may
19be withheld by the board of supervisors or the Community
20Corrections Partnership for the payment of administrative costs.

21(i) Any funds allocated to a county under this section shall be
22available for expenditure for a period of four years and any
23unexpended funds shall revert to the state General Fund at the end
24of the four-year period.

25

SEC. 8.  

Section 17138.3 of the Revenue and Taxation Code
26 is amended to read:

27

17138.3.  

(a) For each taxable year beginning on or after July
281, 2015, gross income does not include an amount received as a
29loan forgiveness, grant, credit, rebate, voucher, or other financial
30incentive issued by the California Residential Mitigation Program
31or the California Earthquake Authority to assist a residential
32property owner or occupant with expenses paid, or obligations
33incurred, for earthquake loss mitigation.

34(b) For the purposes of this section, “earthquake loss mitigation”
35means an activity that reduces seismic risks to a residential
36structure or its contents, or both. For purposes of structural seismic
37risk mitigation, a residential structure is either of the following:

38(1) A structure described in subdivision (a) of Section 10087
39of the Insurance Code.

P14   1(2) A residential building of not fewer than 2, but not more than
210, dwelling units.

3

SEC. 9.  

Section 24308.7 of the Revenue and Taxation Code
4 is amended to read:

5

24308.7.  

(a) For each taxable year beginning on or after July
61, 2015, gross income does not include an amount received as a
7loan forgiveness, grant, credit, rebate, voucher, or other financial
8incentive issued by the California Residential Mitigation Program
9or the California Earthquake Authority to assist a residential
10property owner or occupant with expenses paid, or obligations
11incurred, for earthquake loss mitigation.

12(b) For the purposes of this section, “earthquake loss mitigation”
13means an activity that reduces seismic risks to a residential
14structure or its contents, or both. For purposes of structural seismic
15risk mitigation, a residential structure is either of the following:

16(1) A structure described in subdivision (a) of Section 10087
17of the Insurance Code.

18(2) A residential building of not fewer than 2, but not more than
1910, dwelling units.

20

SEC. 10.  

Item 4170-101-3098 is added to Section 2.00 of the
21Budget Act of 2015, and the amount of four hundred thousand
22dollars ($400,000) is hereby appropriated from the State
23Department of Public Health Licensing and Certification Program
24Fund to this item for Program 3900-Supportive Services, for the
25Long-Term Care Ombudsman Program.

26

SEC. 11.  

This act is a bill providing for appropriations related
27to the Budget Bill within the meaning of subdivision (e) of Section
2812 of Article IV of the California Constitution, has been identified
29as related to the budget in the Budget Bill, and shall take effect
30immediately.



O

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