Amended in Assembly June 3, 2015

Amended in Senate April 14, 2015

Senate Bill No. 414

Introduced by Senator Jackson

begin delete

(Coauthor: Senator Leno)

end delete begin insert

(Principal coauthor: Assembly Member Williams)

end insert

February 25, 2015

begin delete An act to amend Sections 10238 and 17537.1 of the Business and Professions Code, to amend Sections 50, 51.3, 51.11, 682, 682.1, 683, 1099, 1569, and 3390 of the Civil Code, to amend Sections 371, 116.540, 703.140, and 704.930 of the Code of Civil Procedure, to amend Sections 158, 704, 5612, 7612, 12482, 25102, and 25206 of the Corporations Code, to amend Sections 21100, 24803, and 68062 of the Education Code, to amend Sections 917 and 980 of the Evidence Code, to amend Sections 14860, 18220, 18523, and 22327 of the Financial Code, to amend Section 8552.3 of the Fish and Game Code, to amend Sections 9359.9, 9374, 21571, 21572, and 21573, of the Government Code, to amend Sections 1373.5, 18080, 25299.54, and 32501 of the Health and Safety Code, to amend Sections 10112, 10121.5, 10320, 10493, and 10494.6 of the Insurance Code, to amend Section 3503 of the Labor Code, to amend Sections 152.3, 197, 270e, 273.5, 281, 282, 284, 534, 4002, and 13700 of the Penal Code, to amend Sections 59, 78, 100, 101, 103, 2407, 5203, 5600, 5601, 6122, 6227, 6240, 13500, and 13600 of the Probate Code, to amend Sections 17021, 17039, 17045, 17053.5, 17054, 17077, 17555, 18501, 18522, 18530, 18531.5, 18532, 19006, 19035, 19107, 19110, 19701.5, and 20542 of the Revenue and Taxation Code, to amend Section 2804 of the Streets and Highways Code, to amend Section 13003 of the Unemployment Insurance Code, and to amend Sections 742.16, 7275, 12003, 14140, and 18291 of the Welfare and Institutions Code, relating to marriage. end delete begin insert An act to amend Sections 8670.8.5, 8670.12, 8670.13, and 8670.67.5 of, and to add Sections 8670.11, 8670.12.1, 8670.13.3, 8670.31.5, and 8670.43 to, the Government Code, relating to oil spill response. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 414, as amended, Jackson. begin delete Marriage. end delete begin insert Oil spill response. end insert

begin insert

(1) The Lempert-Keene-Seastrand Oil Spill Prevention and Response Act generally requires the administrator for oil spill response, acting at the direction of the Governor, to implement activities relating to oil spill response, including emergency drills and preparedness, and oil spill containment and cleanup. The act authorizes the administrator to use volunteer workers in response, containment, restoration, wildlife rehabilitation, and cleanup efforts for oil spills in waters of the state. Existing law requires the administrator to evaluate the feasibility of using commercial fishermen and other mariners for oil spill containment and cleanup.

end insert begin insert

This bill would require the administrator, in cooperation with the United States Coast Guard, to conduct an independent vessel traffic assessment for the San Francisco Bay that may inform an area rescue towing plan for the 3 approaches to the Golden Gate, and to establish a schedule of drills and exercises that are required under the federal Salvage and Marine Firefighting regulations. The bill would require the administrator to develop and implement a program to allow immediate response to an oil spill by contracted fishing vessels and crews. The bill would require the administrator, on or before July 1, 2016, to submit to the Legislature a report assessing the best available technology and equipment for oil spill prevention and response.

end insert begin insert

(2) The act requires operators of specified vessels and facilities to submit to the administrator an oil spill contingency plan to determine whether the plan meets applicable requirements. The act requires an operator to resubmit the plan to the administrator every 5 years.

end insert begin insert

This bill would require the administrator to adopt, by regulation, methodology to rate the oil spill prevention and response equipment listed in the plan to maintain the best achievable protection standards through the use of equipment that is the best available technology.

end insert begin insert

(3) The act requires the administrator to license oil spill cleanup agents for use in response to oil spills. The federal Coastal Zone Management Act (federal act) requires federal agency activities to be carried out in a manner that is consistent, to the maximum extent practicable, with an approved state management plan. Existing federal law authorizes the California Coastal Commission, the designated state agency, to conduct federal consistency review to ensure federal agency activities are consistent with the California Coastal Management Program.

end insert begin insert

This bill would prohibit the use of oil spill cleanup agents in the waters of the state unless 2 specified conditions occur. The bill would require the California Coastal Commission to conduct a federal consistency review for federal policies authorizing the use of oil spill cleanup agents in the coastal waters of the state.

end insert begin insert

(4) Existing law imposes an oil spill prevention and administration fee in an amount determined by the administrator to be sufficient to implement oil spill prevention activities. The fee is deposited into the Oil Spill Prevention and Administration Fund in the State Treasury and moneys in the fund are available, upon appropriation by the Legislature, for, among other purposes, the implementation, installation, and maintenance of emergency programs, equipment, and facilities to respond to, contain, and clean up oil spills, and to ensure that those operations will be carried out as intended.

end insert begin insert

This bill would require the administrator, upon appropriation of funds for that purpose, to purchase specified oil spill response equipment, including specified equipment to be stationed on the Santa Barbara coastline.

end insert begin insert

(5) The act makes a person who causes or permits a spill or inland spill strictly liable for specified penalties for the spill on a per-gallon-released basis. The act provides that the amount of penalty is reduced by the amount of released oil that is recovered and properly disposed of.

end insert begin insert

This bill would provide that the above reduction in the penalty for spills, including inland spills, of greater than 500 gallons, is only applicable to the amount of oil recovered and properly disposed of within 2 weeks of the start of the spill.

end insert begin insert

(6) This bill would make legislative findings and declarations as to the necessity of a special statute for the San Francisco Bay and for the Santa Barbara coastline.

end insert begin delete

Under existing law, a reference to “husband” and “wife,” “spouses,” or “married persons,” or a comparable term, includes persons who are lawfully married to each other and persons who were previously lawfully married to each other, as is appropriate under the circumstances of the particular case.

end delete begin delete

The bill would replace references to a “husband” or “wife” with references to a “spouse,” and would make other conforming and related changes.

end delete

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

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 8670.8.5 of the end insert begin insert Government Code end insert begin insert is
amended to read: end insert

8670.8.5.  

begin insert (a) end insert The administrator may use volunteer workers in
response, containment, restoration, wildlife rehabilitation, and
cleanup efforts for oil spills in waters of the state. The volunteers
shall be deemed employees of the state for the purpose of workers’
compensation under Article 2 (commencing with Section 3350)
of Chapter 2 of Part 1 of Division 4 of the Labor Code. Any
payments for workers’ compensation pursuant to this section shall
be made from the Oil Spill Response Trust Fund created pursuant
to Section 8670.46.

begin insert

(b) (1) The administrator shall develop and implement a
program to allow immediate response to an oil spill by contracted
fishing vessels and crews and that shall provide for regularly
scheduled emergency drills and training in areas that include the
following:

end insert begin insert

(A) Shoreline protection.

end insert begin insert

(B) Towing boom and skimmers.

end insert begin insert

(C) Working with minibarges.

end insert begin insert

(D) Loading and unloading equipment from response barges.

end insert begin insert

(2) In developing the program, the administrator shall consider
the fishing vessel training program funded and maintained by
Alyeska’s Ship Escort/Response Vessel System.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 8670.11 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 8670.11. end insert   

In addition to Section 8670.10, the administrator, in
cooperation with the United States Coast Guard, shall establish
a schedule of drills and exercises required pursuant to Section
155.4052 of Title 33 of the Code of Federal Regulations. The
administrator shall make publicly available the established
schedule.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 8670.12 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

8670.12.  

(a) The administrator shall conduct studies and
evaluations necessary for improving oil spill response, containment,
and cleanup and oil spill wildlife rehabilitation in waters of the
state and oil transportation systems. The administrator may expend
moneys from the Oil Spill Prevention and Administration Fund
created pursuant to Section 8670.38, enter into consultation
agreements, and acquire necessary equipment and services for the
purpose of carrying out these studies and evaluations.

(b) The administrator shall study the use and effects of
dispersants, incineration, bioremediation, and any other methods
used to respond to a spill. The study shall periodically be updated
to ensure the best achievable protection from the use of those
methods. Based upon substantial evidence in the record, the
administrator may determine in individual cases that best
achievable protection is provided by establishing requirements
that provide the greatest degree of protection achievable without
imposing costs that significantly outweigh the incremental
protection that would otherwise be provided. The studies shall do
all of the following:

(1) Evaluate the effectiveness of dispersants and other chemical
agents in oil spill response under varying environmental conditions.

(2) Evaluate potential adverse impacts on the environment and
public health including, but not limited to, adverse toxic impacts
on water quality, fisheries, and wildlife with consideration to
bioaccumulation and synergistic impacts, and the potential for
human exposure, including skin contact and consumption of
contaminated seafood.

(3) Recommend appropriate uses and limitations on the use of
dispersants and other chemical agents to ensure they are used only
in situations where the administrator determines they are effective
and safe.

begin delete end delete begin delete

(c) The administrator shall evaluate the feasibility of using
commercial fishermen and other mariners for oil spill containment
and cleanup. The study shall examine the following:

end delete begin delete end delete begin delete end delete begin delete

(1) Equipment and technology needs.

end delete begin delete end delete begin delete end delete begin delete

(2) Coordination with private response personnel.

end delete begin delete end delete begin delete end delete begin delete

(3) Liability and insurance.

end delete begin delete end delete begin delete end delete begin delete

(4) Compensation.

end delete begin delete end delete begin delete

(d)

end delete

begin insert (c) end insert  The studies shall be performed in conjunction with any
studies performed by federal, state, and international entities. The
administrator may enter into contracts for the studies.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 8670.12.1 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 8670.12.1. end insert   

The administrator, in cooperation with the United
States Coast Guard, shall conduct an independent vessel traffic
risk assessment for the San Francisco Bay that may inform an area
rescue towing plan for the three approaches to the Golden Gate.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 8670.13 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

8670.13.  

begin insert (a) end insert begin insert   end insert The administrator shall periodically evaluate the
feasibility of requiring new technologies to aid prevention,
response, containment, cleanup and wildlife rehabilitation.

begin insert

(b) (1) On or before July 1, 2016, the administrator shall submit
a report to the Legislature, pursuant to Section 9795, assessing
the best available technology and equipment for oil spill prevention
and response, including, but not limited to, prevention and response
tugs, tractor tugs, salve and marine firefighting tugs, oil spill
skimmers and barges, and protective in-water boom equipment.

end insert begin insert

(2) In conducting the assessment, the administrator shall consult
the peer-reviewed research performed by the Prince William Sound
Regional Citizens’ Advisory Council.

end insert begin insert

(3) Pursuant to Section 10231.5, this subdivision is inoperative
on July 1, 2020.

end insert begin insert

(c) Based on the report prepared pursuant to subdivision (b),
the administrator shall establish standards for best achievable
technologies for oil spill prevention and response.

end insert

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 8670.13.3 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 8670.13.3. end insert   

(a) (1) (A) Notwithstanding any law, oil spill
cleanup agents shall not be used in response to an oil spill within
the waters of the state unless both of the following occur:

(i) The administrator establishes, pursuant to Section 8670.13,
standards for best achievable technologies for oil spill prevention
and response.

(ii) The United States Environmental Protection Agency adopts
amendments to subpart J of the National Oil and Hazardous
Substances Pollution Contingency Plan (40 C.F.R. Sec. 300.900
et. seq.) governing the use of oil spill cleanup agents, other
chemical and biological agents, and other oil spill mitigating
substances in responding to oil discharges into water, as set forth
in Docket ID No. EPA-HQ-OPA-2006-0090, and the administrator
adopts regulations consistent with those federal amendments.

(B) Upon the occurrence of clauses (i) and (ii), the administrator
shall notify the Secretary of State of those occurrences and shall
post on the Office of Oil Spill Prevention and Response’s Internet
Web site a notice of those occurrences.

(2) For purposes of this section, “waters of the state” means
any surface water, including saline water, within the boundary of
the state.

(b) The California Coastal Commission, pursuant to Section
307 of the federal Coastal Zone Management Act (16 U.S.C. Sec.
1456) and the California Coastal Act (Division 20 (commencing
with Section 30000) of the Public Resources Code), shall conduct
a federal consistency review for federal policy authorizing the use
of oil spill cleanup agents in the coastal waters of California.

end insert

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 8670.31.5 is added to the end insert begin insert Government Code end insert begin insert ,
to read: end insert

begin insert

begin insert 8670.31.5. end insert   

The administrator shall, by regulation, establish a
methodology for rating equipment, such as oil containment,
skimming, storage, and oil/water separation technologies, listed
in an oil spill contingency plan to maintain the best achievable
protection standards through the use of equipment that is the best
available technology.

end insert

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 8670.43 is added to the end insert begin insert Government Code end insert begin insert , to
read: end insert

begin insert

begin insert 8670.43. end insert   

Pursuant to paragraph (4) of subdivision (e) of
Section 8670.40, the administrator, upon appropriation of funds
for that purpose, shall do both of the following:

(a) Purchase at least two new-generation, high-efficiency disc
skimmers to be stationed on the Santa Barbara coastline. This
equipment shall include high-efficiency skimming NOFI current
busters, or their equivalent, and Elastec grooved disc skimmers,
or their equivalent.

(b) Purchase a purpose-built, prepositioned prevention and
response tug with appropriate size, bollard pull, horsepower,
propulsion, seakeeping, and maneuverability to meet Det Norske
Veritas criteria for emergency towing.

end insert

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 8670.67.5 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

8670.67.5.  

(a)  begin delete Any end delete begin insert Regardless of intent or negligence, any end insert
person who begin delete without regard to intent or negligence end delete causes or permits
a spill shall be strictly liable civilly in accordance with subdivision
(b) or (c).

(b) A penalty may be administratively imposed by the
administrator in accordance with Section 8670.68 in an amount
not to exceed twenty dollars ($20) per gallon for a spill. begin delete The end delete begin insert Except
as provided in subdivision (d), the end insert amount of the penalty shall be
reduced for every gallon of released oil that is recovered and
properly disposed of in accordance with applicable law.

(c) Whenever the release of oil resulted from gross negligence
or reckless conduct, the administrator shall, in accordance with
Section 8670.68, impose a penalty in an amount not to exceed
sixty dollars ($60) per gallon for a spill. begin delete The end delete begin insert Except as provided
in subdivision (d), the end insert amount of the penalty shall be reduced for
every gallon of released oil that is recovered and properly disposed
of in accordance with applicable law.

begin insert

(d) (1) For a spill of greater than 500 gallons, the penalty
assessed pursuant to subdivision (b) or (c) shall only be reduced
for every gallon of released oil that is recovered and properly
disposed of in accordance with applicable law within two weeks
of the start of the spill.

end insert begin insert

(2) Notwithstanding Section 8670.69.7, any increase in the
amount of a penalty assessed for an inland spill resulting from the
operation of paragraph (1) shall be deposited in the Environmental
Enhancement Fund pursuant to Section 8670.70.

end insert begin delete

(d)

end delete

begin insert (e) end insert  The administrator shall adopt regulations governing the
method for determining the amount of oil that is cleaned up.

begin insert

begin insert SEC. 10. end insert   

end insert begin insert

In regard to provisions of this act related to the San
Francisco Bay or the Santa Barbara coastline, the Legislature
finds and declares that a special law is necessary and that a
general law cannot be made applicable within the meaning of
Section 16 of Article IV of the California Constitution because of
the unique maritime conditions in the San Francisco Bay that affect
vessel traffic and the operation of offshore oil drilling platforms
near the Santa Barbara coastline.

end insert

begin delete

SECTION 1.  

Section 10238 of the Business and Professions
Code is amended to read:

10238.  

(a) A notice in the following form and containing the
following information shall be filed with the commissioner within
30 days after the first transaction and within 30 days of any material
change in the information required in the notice:

 

TO:	Real Estate Commissioner Mortgage Loan Section 2201 Broadway Sacramento, CA 95818
This notice is filed pursuant to Sections 10237 and 10238 of the Business and Professions Code.
( ) Original Notice    ( ) Amended Notice
1.	Name of Broker conducting transaction under Section 10237:
2.	Broker license identification number:
3.	List the month the fiscal year ends:
4.	Broker’s telephone number:
5.	Firm name (if different from “1”):
6.	Street address (main location):
	# and Street     City     State     ZIP Code
7.	Mailing address (if different from “6”):
8.	Servicing agent: Identify by name, address, and telephone number the person or entity who will act as the servicing agent in transactions pursuant to Section 10237 (including the undersigned Broker if that is the case):
9.	Total number of multilender notes arranged:
10.	Total number of interests sold to investors on the
	multilender’s notes:
11.	Inspection of trust account (before answering this question, review the provisions of paragraph (3) of subdivision (k) of Section 10238).
CHECK ONLY ONE OF THE FOLLOWING:
( )	The undersigned Broker is (or expects to be) required to file reports of inspection of its trust account(s) with the Real Estate Commissioner pursuant to paragraph (3) of subdivision (k) of Section 10238.
Amount of Multilender Payments Collected Last Fiscal Quarter:
Total Number of Investors Due Payments Last Fiscal Quarter:
( )	The undersigned Broker is NOT (or does NOT expect to be) required to file reports of inspection of its trust account(s) with the Real Estate Commissioner pursuant to paragraph (3) of subdivision (k) of Section 10238.
12.	Signature. The contents of this notice are true and correct.
	Date	Type Name of Broker
		Signature of Broker or of Designated Officer of Corporate Broker
		Type Name of Person(s) Signing This Notice

 

NOTE: AN AMENDED NOTICE MUST BE FILED BY THE
BROKER WITHIN 30 DAYS OF ANY MATERIAL CHANGE
IN THE INFORMATION REQUIRED TO BE SET FORTH
HEREIN.

(b) A broker or person who becomes the servicing agent for
notes or interest sold pursuant to this article, upon which payments
due during any period of three consecutive months in the aggregate
exceed one hundred twenty-five thousand dollars ($125,000) or
the number of persons entitled to the payments exceeds 120, shall
file the notice required by subdivision (a) with the commissioner
within 30 days after becoming the servicing agent.

(c) All advertising employed for transactions under this article
shall show the name of the broker and comply with Section 10235
and Sections 260.302 and 2848 of Title 10 of the California Code
of Regulations. Brokers and their agents are cautioned that a
reference to a prospective investor that a transaction is conducted
under this article may be deemed misleading or deceptive if this
representation may reasonably be construed by the investor as an
implication of merit or approval of the transaction.

(d) Each parcel of real property directly securing the notes or
interests shall be located in this state, the note or notes shall not
by their terms be subject to subordination to any subsequently
created deed of trust upon the real property, and the note or notes
shall not be promotional notes secured by liens on separate parcels
of real property in one subdivision or in contiguous subdivisions.
For purposes of this subdivision, a promotional note means a
promissory note secured by a trust deed, executed on unimproved
real property or executed after construction of an improvement of
the property but before the first purchase of the property as so
improved, or executed as a means of financing the first purchase
of the property as so improved, that is subordinate, or by its terms
may become subordinate, to any other trust deed on the property.
However, the term “promotional note” does not include either of
the following:

(1) A note that was executed in excess of three years prior to
being offered for sale.

(2) A note secured by a first trust deed on real property in a
subdivision that evidences a bona fide loan made in connection
with the financing of the usual cost of the development in a
residential, commercial, or industrial building or buildings on the
property under a written agreement providing for the disbursement
of the loan funds as costs are incurred or in relation to the progress
of the work and providing for title insurance ensuring the priority
of the security as against mechanic’s and materialmen’s liens or
for the final disbursement of at least 10 percent of the loan funds
after the expiration of the period for the filing of mechanic’s and
materialmen’s liens.

(e) The notes or interests shall be sold by or through a real estate
broker, as principal or agent. At the time the interests are originally
sold or assigned, neither the broker nor an affiliate of the broker
shall have an interest as owner, lessor, or developer of the property
securing the loan, or any contractual right to acquire, lease, or
develop the property securing the loan. This provision does not
prohibit a broker from conducting the following transactions if, in
either case, the disclosure statement furnished by the broker
pursuant to subdivision (l) discloses the interest of the broker or
affiliate in the transaction and the circumstances under which the
broker or affiliate acquired the interest:

(1) A transaction in which the broker or an affiliate of the broker
is acquiring the property pursuant to a foreclosure under, or sale
pursuant to, a deed of trust securing a note for which the broker is
the servicing agent or that the broker sold to the holder or holders.

(2) A transaction in which the broker or an affiliate of the broker
is reselling from inventory property acquired by the broker pursuant
to a foreclosure under, or sale pursuant to, a deed of trust securing
a note for which the broker is the servicing agent or that the broker
sold to the holder or holders.

(f) (1) The notes or interests shall not be sold to more than 10
persons, each of whom meets one or both of the qualifications of
income or net worth set forth below and signs a statement, which
shall be retained by the broker for four years, conforming to the
following:

 

Transaction Identifier:
Name of Purchaser:     Date:  ______
Check either one of the following, if true:
( )	My investment in the transaction does not exceed 10% of my net worth, exclusive of home, furnishings, and automobiles.
( )	My investment in the transaction does not exceed 10% of my adjusted gross income for federal income tax purposes for my last tax year or, in the alternative, as estimated for the current year.
Signature

 

(2) The number of offerees shall not be considered for the
purposes of this section.

(3) Spouses and their dependents, and an individual and his or
her dependents, shall be counted as one person.

(4) A retirement plan, trust, business trust, corporation, or other
entity that is wholly owned by an individual and the individual’s
spouse or the individual’s dependents, or any combination thereof,
shall not be counted separately from the individual, but the
investments of these entities shall be aggregated with those of the
individual for the purposes of the statement required by paragraph
(1). If the investments of any entities are required to be aggregated
under this subdivision, the adjusted gross income or net worth of
these entities may also be aggregated with the net worth, income,
or both, of the individual.

(5) The “institutional investors” enumerated in subdivision (i)
of Section 25102 or subdivision (c) of Section 25104 of the
Corporations Code, or in a rule adopted pursuant thereto, shall not
be counted.

(6) A partnership, limited liability company, corporation, or
other organization that was not specifically formed for the purpose
of purchasing the security offered in reliance upon this exemption
from securities qualification is counted as one person.

(g) The notes or interests of the purchasers shall be identical in
their underlying terms, including the right to direct or require
foreclosure, rights to and rate of interest, and other incidents of
being a lender, and the sale to each purchaser pursuant to this
section shall be upon the same terms, subject to adjustment for the
face or principal amount or percentage interest purchased and for
interest earned or accrued. This subdivision does not preclude
different selling prices for interests to the extent that these
differences are reasonably related to changes in the market value
of the loan occurring between the sales of these interests. The
interest of each purchaser shall be recorded pursuant to
subdivisions (a) to (c), inclusive, of Section 10234.

(h) (1) Except as provided in paragraph (2), the aggregate
principal amount of the notes or interests sold, together with the
unpaid principal amount of any encumbrances upon the real
property senior thereto, shall not exceed the following percentages
of the current market value of each parcel of the real property, as
determined in writing by the broker or appraiser pursuant to Section
10232.6, plus the amount for which the payment of principal and
interest in excess of the percentage of current market value is
insured for the benefit of the holders of the notes or interests by
an insurer admitted to do business in this state by the Insurance
Commissioner:

 

(A)	Single-family residence, owner occupied	80%
(B)	Single-family residence, not owner occupied	75%
(C)	Commercial and income-producing properties	65%
(D)	Single-family residentially zoned lot or parcel which has installed offsite improvements including drainage, curbs, gutters, sidewalks, paved roads, and utilities as mandated by the political subdivision having jurisdiction over the lot or parcel	65%
(E)	Land that has been zoned for (and if required, approved for subdivision as) commercial or residential development	50%
(F)	Other real property	35%

 

(2) The percentage amounts specified in paragraph (1) may be
exceeded when and to the extent that the broker determines that
the encumbrance of the property in excess of these percentages is
reasonable and prudent considering all relevant factors pertaining
to the real property. However, in no event shall the aggregate
principal amount of the notes or interests sold, together with the
unpaid principal amount of any encumbrances upon the property
senior thereto, exceed 80 percent of the current fair market value
of improved real property or 50 percent of the current fair market
value of unimproved real property, except in the case of a
single-family zoned lot or parcel as defined in paragraph (1), which
shall not exceed 65 percent of the current fair market value of that
lot or parcel, plus the amount insured as specified in paragraph
(1). A written statement shall be prepared by the broker that sets
forth the material considerations and facts that the broker relies
upon for his or her determination, which shall be retained as a part
of the broker’s record of the transaction. Either a copy of the
statement or the information contained therein shall be included
in the disclosures required pursuant to subdivision (l).

(3) A copy of the appraisal or the broker’s evaluation, for each
parcel of real property securing the notes or interests, shall be
delivered to each purchaser. The broker shall advise purchasers
of their right to receive a copy. For purposes of this paragraph,
“appraisal” means a written estimate of value based upon the
assembling, analyzing, and reconciling of facts and value indicators
for the real property in question. A broker shall not purport to make
an appraisal unless the person so employed is qualified on the basis
of special training, preparation, or experience.

(4) For construction or rehabilitation loans, the term “current
market value” may be deemed to be the value of the completed
project if the following safeguards are met:

(A) An independent neutral third-party escrow holder is used
for all deposits and disbursements.

(B) The loan is fully funded, with the entire loan amount to be
deposited in escrow prior to recording of the deed or deeds of trust.

(C) A comprehensive, detailed, draw schedule is used to ensure
proper and timely disbursements to allow for completion of the
project.

(D) The disbursement draws from the escrow account are based
on verification from an independent qualified person who certifies
that the work completed to date meets the related codes and
standards and that the draws were made in accordance with the
construction contract and draw schedule. For purposes of this
subparagraph, “independent qualified person” means a person who
is not an employee, agent, or affiliate of the broker and who is a
licensed architect, general contractor, structural engineer, or active
local government building inspector acting in his or her official
capacity.

(E) An appraisal is completed by a qualified and licensed
appraiser in accordance with the Uniform Standards of Professional
Appraisal Practice (USPAP).

(F) In addition to the transaction documentation required by
subdivision (i), the documentation shall include a detailed
description of actions that may be taken in the event of a failure
to complete the project, whether that failure is due to default,
insufficiency of funds, or other causes.

(G) The entire amount of the loan does not exceed two million
five hundred thousand dollars ($2,500,000).

(5) If a note or an interest will be secured by more than one
parcel of real property, for the purpose of determining the
maximum amount of the note or interest, each security property
shall be assigned a portion of the note or interest which shall not
exceed the percentage of current market value determined by, and
in accordance with, the provisions of paragraphs (1) and (2).

(i) The documentation of the transaction shall require that (1)
a default upon any interest or note is a default upon all interests
or notes and (2) the holders of more than 50 percent of the recorded
beneficial interests of the notes or interests may govern the actions
to be taken on behalf of all holders in accordance with Section
2941.9 of the Civil Code in the event of default or foreclosure for
matters that require direction or approval of the holders, including
designation of the broker, servicing agent, or other person acting
on their behalf, and the sale, encumbrance, or lease of real property
owned by the holders resulting from foreclosure or receipt of a
deed in lieu of foreclosure. The terms called for by this subdivision
may be included in the deed of trust, in the assignment of interests,
or in any other documentation as is necessary or appropriate to
make them binding on the parties.

(j) (1) The broker shall not accept any purchase or loan funds
or other consideration from a prospective lender or purchaser, or
directly or indirectly cause the funds or other consideration to be
deposited in an escrow or trust account, except as to a specific loan
or note secured by a deed of trust that the broker owns, is
authorized to negotiate, or is unconditionally obligated to buy.

(2) All funds received by the broker from the purchasers or
lenders shall be handled in accordance with Section 10145 for
disbursement to the persons thereto entitled upon recordation of
the interests of the purchasers or lenders in the note and deed of
trust. No provision of this article shall be construed as modifying
or superseding applicable law regulating the escrow holder in any
transaction or the handling of the escrow account.

(3) The books and records of the broker or servicing agent, or
both, shall be maintained in a manner that readily identifies
transactions under this article and the receipt and disbursement of
funds in connection with these transactions.

(4) If required by paragraph (3) of subdivision (k), the review
by the independent certified public accountant shall include a
sample of transactions, as reflected in the records of the trust
account required pursuant to paragraph (1) of subdivision (k), and
the bank statements and supporting documents. These documents
shall be reviewed for compliance with this article with respect to
the handling and distribution of funds. The sample shall be selected
at random by the accountant from all these transactions and shall
consist of the following: (A) three sales made or 5 percent of the
sales made pursuant to this article during the period for which the
examination is conducted, whichever is greater, and (B) 10
payments processed or 2 percent of payments processed under this
article during the period for which the examination is conducted,
whichever is greater.

(5) For the purposes of this subdivision, the transaction that
constitutes a “sale” is the series of transactions by which a series
of notes of a maker, or the interests in the note of a maker, are sold
or issued to their various purchasers under this article, including
all receipts and disbursements in that process of funds received
from the purchasers or lenders. The transaction that constitutes a
“payment,” for the purposes of this subdivision, is the receipt of
a payment from the person obligated on the note or from some
other person on behalf of the person so obligated, including the
broker or servicing agent, and the distribution of that payment to
the persons entitled thereto. If a payment involves an advance paid
by the broker or servicing agent as the result of a dishonored check,
the inspection shall identify the source of funds from which the
payment was made or, in the alternative, the steps that are
reasonably necessary to determine that there was not a
disbursement of trust funds. The accountant shall inspect for
compliance with the following specific provisions of this section:
paragraphs (1), (2), and (3) of subdivision (j) and paragraphs (1)
and (2) of subdivision (k).

(6) Within 30 days of the close of the period for which the report
is made, or within any additional time as the commissioner may
in writing allow in a particular case, the accountant shall forward
to the broker or servicing agent, as the case may be, and to the
commissioner, the report of the accountant, stating that the
inspection was performed in accordance with this section, listing
the sales and the payments examined, specifying the nature of the
deficiencies, if any, noted by the accountant with respect to each
sale or payment, together with any further information as the
accountant may wish to include, such as corrective steps taken
with respect to any deficiency so noted, or stating that no
deficiencies were observed. If the broker meets the threshold
criteria of Section 10232, the report of the accountant shall be
submitted as part of the quarterly reports required under Section
10232.25.

(k) The notes or interests shall be sold subject to a written
agreement that obligates a licensed real estate broker, or a person
exempted from the licensing requirement for real estate brokers
under this chapter, to act as agent for the purchasers or lenders to
service the note or notes and deed of trust, including the receipt
and transmission of payments and the institution of foreclosure
proceedings in the event of a default. A copy of this servicing
agreement shall be delivered to each purchaser. The broker shall
offer to the lenders or purchasers the services of the broker or one
or more affiliates of the broker, or both, as servicing agent for each
transaction conducted pursuant to this article. The agreement shall
require all of the following:

(1) (A) That payments received on the note or notes be
deposited immediately to a trust account maintained in accordance
with this section and with the provisions for trust accounts of
licensed real estate brokers contained in Section 10145 and Article
15 (commencing with Section 2830.1) of Chapter 6 of Title 10 of
the California Code of Regulations.

(B) That payments deposited pursuant to subparagraph (A) shall
not be commingled with the assets of the servicing agent or used
for any transaction other than the transaction for which the funds
are received.

(2) That payments received on the note or notes shall be
transmitted to the purchasers or lenders pro rata according to their
respective interests within 25 days after receipt thereof by the
agent. If the source for the payment is not the maker of the note,
the agent shall inform the purchasers or lenders in writing of the
source for payment. A broker or servicing agent who transmits to
the purchaser or lenders the broker’s or servicing agent’s own
funds to cover payments due from the borrower but unpaid as a
result of a dishonored check may recover the amount of the
advances from the trust fund when the past due payment is
received. However, this article does not authorize the broker,
servicing agent, or any other person to issue, or to engage in any
practice constituting, any guarantee or to engage in the practice of
advancing payments on behalf of the borrower.

(3) If the broker or person who is or becomes the servicing agent
for notes or interests sold pursuant to this article upon which the
payments due during any period of three consecutive months in
the aggregate exceed one hundred twenty-five thousand dollars
($125,000) or the number of persons entitled to the payments
exceeds 120, the trust account or accounts of that broker or affiliate
shall be inspected by an independent certified public accountant
at no less than three-month intervals during the time the volume
is maintained. Within 30 days after the close of the period for
which the review is made, the report of the accountant shall be
forwarded as provided in paragraph (6) of subdivision (j). If the
broker is required to file an annual report pursuant to subdivision
(o) or pursuant to Section 10232.2, the quarterly report pursuant
to this subdivision need not be filed for the last quarter of the year
for which the annual report is made. For the purposes of this
subdivision, an affiliate of a broker is any person controlled by,
controlling, or under common control with the broker.

(4) Unless the servicing agent will receive notice pursuant to
Section 2924b of the Civil Code, the servicing agent shall file a
written request for notice of default upon any prior encumbrances
and promptly notify the purchasers or lenders of any default on
the prior encumbrances or on the note or notes subject to the
servicing agreement.

(5) The servicing agent shall promptly forward copies of the
following to each purchaser or lender:

(A) Any notice of trustee sale filed on behalf of the purchasers
or lenders.

(B) Any request for reconveyance of the deed of trust received
on behalf of the purchasers or lenders.

(l) The broker shall disclose in writing to each purchaser or
lender the material facts concerning the transaction on a disclosure
form adopted or approved by the commissioner pursuant to Section
10232.5, subject to the following:

(1) The disclosure form shall include a description of the terms
upon which the note and deed of trust are being sold, including
the terms of the undivided interests being offered therein, including
the following:

(A) In the case of the sale of an existing note:

(i) The aggregate sale price of the note.

(ii) The percent of the premium over or discount from the
principal balance plus accrued but unpaid interest.

(iii) The effective rate of return to the purchasers if the note is
paid according to its terms.

(iv) The name and address of the escrow holder for the
transaction.

(v) A description of, and the estimated amount of, each cost
payable by the seller in connection with the sale and a description
of, and the estimated amount of, each cost payable by the
purchasers in connection with the sale.

(B) In the case of the origination of a note:

(i) The name and address of the escrow holder for the
transaction.

(ii) The anticipated closing date.

(iii) A description of, and the estimated amount of, each cost
payable by the borrower in connection with the loan and a
description of, and the estimated amount of, each cost payable by
the lenders in connection with the loan.

(C) In the case of a transaction involving a note or interest
secured by more than one parcel of real property, in addition to
the requirements of subparagraphs (A) and (B):

(i) The address, description, and estimated fair market value of
each property securing the loan.

(ii) The amount of the available equity in each property securing
the loan after the loan amount to be apportioned to each property
is assigned.

(iii) The loan to value percentage for each property after the
loan amount to be apportioned to each property is assigned pursuant
to subdivision (h).

(2) A copy of the written statement or information contained
therein, as required by paragraph (2) of subdivision (h), shall be
included in the disclosure form.

(3) Any interest of the broker or affiliate in the transaction, as
described in subdivision (e), shall be included with the disclosure
form.

(4) When the particular circumstances of a transaction make
information not specified in the disclosure form material or
essential to keep the information provided in the form from being
misleading, and the other information is known to the broker, the
other information shall also be provided by the broker.

(5) If more than one parcel of real property secures the notes or
interests, the disclosure form shall also fully disclose any risks to
investors associated with securing the notes or interests with
multiple parcels of real property.

(m) The broker or servicing agent shall furnish any purchaser
of a note or interest, upon request, with the names and addresses
of the purchasers of the other notes or interests in the loan.

(n) No agreement in connection with a transaction covered by
this article shall grant to the real estate broker, the servicing agent,
or any affiliate of the broker or agent the option or election to
acquire the interests of the purchasers or lenders or to acquire the
real property securing the interests. This subdivision shall not
prohibit the broker or affiliate from acquiring the interests, with
the consent of the purchasers or lenders whose interests are being
purchased, or the property, with the written consent of the
purchasers or lenders, if the consent is given at the time of the
acquisition.

(o) Each broker who conducts transactions under this article,
or broker or person who becomes the servicing agent for notes or
interest sold pursuant to this article, who meets the criteria of
paragraph (3) of subdivision (k) shall file with the commissioner
an annual report of a review of its trust account. The report shall
be prepared and filed in accordance with subdivision (a) of Section
10232.2 and the rules and procedures thereunder of the
commissioner. That report shall cover the broker’s transactions
under this article and, if the broker also meets the threshold criteria
set forth in Section 10232, the broker’s transactions subject to that
section shall be included as well.

(p) Each broker conducting transactions pursuant to this article,
or broker or person who becomes the servicing agent for notes or
interest sold pursuant to this article, who meets the criteria of
paragraph (3) of subdivision (k) shall file with the commissioner
a report of the transactions that is prepared in accordance with
subdivision (c) of Section 10232.2. If the broker also meets the
threshold criteria of Section 10232, the report shall include the
transactions subject to that section as well. This report shall be
confidential pursuant to subdivision (f) of Section 10232.2.

SEC. 2.  

Section 17537.1 of the Business and Professions Code
is amended to read:

17537.1.  

(a) It is unlawful for any person, or an employee,
agent, or independent contractor employed or authorized by that
person, by any means, as part of an advertising plan or program,
to offer any incentive as an inducement to the recipient to visit a
location, attend a sales presentation, or contact a sales agent in
person, by telephone, or by mail, unless the offer clearly and
conspicuously discloses in writing, in readily understandable
language, all of the information required in paragraphs (1) and (2).
If the offer is not initially made in writing, the required disclosures
shall be received by the recipient in writing prior to any scheduled
visit to a location, sales presentation, or contact with a sales agent.
For purposes of this section, the term “incentive” means any item
or service of value, including, but not limited to, any prize, gift,
money, or other tangible property.

(1) The following disclosures shall appear on the front (or first)
page of the offer:

(A) The name and street address of the owner of the real or
personal property or the provider of the services which are the
subject of the visit, sales presentation, or contact with a sales agent.
If the offer is made by an agent or independent contractor employed
or authorized by the owner or provider, or is made under a name
other than the true name of the owner or provider, the name of the
owner or provider shall be more prominently and conspicuously
displayed than the name of the agent, independent contractor, or
other name.

(B) A general description of the business of the owner or
provider identified pursuant to subparagraph (A), and the purpose
of any requested visit, sales presentation, or contact with a sales
agent, which shall include a general description of the real or
personal property or services which are the subject of the sales
presentation and a clear statement, if applicable, that there will be
a sales presentation and the approximate duration of the visit and
sales presentation.

(C) If the recipient is not assured of receiving any particular
incentive, a statement of the odds of receiving each incentive
offered or, in the alternative, a clear statement describing the
location in the offer where the odds can be found. The odds shall
be stated in whole Arabic numbers in a format such as: “1 chance
in 100,000” or “1:100,000.” The odds and, where applicable, the
alternative statement describing their location, shall be printed in
a type size that is at least equal to that used for the standard text
on the front (or first) page of the offer.

(D) A clear statement, if applicable, that the offer is subject to
specific restrictions, qualifications, and conditions and a statement
describing the location in the offer where the restrictions,
qualifications, and conditions may be found. Both statements shall
be printed in a type size that is at least equal to that used for the
standard text on the front (or first) page of the offer.

(2) The following disclosures shall appear in the offer, but need
not appear on the front (or first) page of the offer:

(A) Unless the odds are disclosed on the front (or first) page of
the offer, a statement of the odds of receiving each incentive
offered, printed in the size and format set forth in subparagraph
(C) of paragraph (1).

(B) All restrictions, qualifications, and other conditions which
must be satisfied before the recipient is entitled to receive the
incentive, including but not limited to:

(i) Any deadline by which the recipient must visit the location,
attend the sales presentation, or contact the sales agent in order to
receive an incentive.

(ii) Any other conditions, such as a minimum age qualification,
a financial qualification, or a requirement that if the recipient is
married both spouses must be present in order to receive the
incentive. Any financial qualifications shall be stated with a
specificity sufficient to enable the recipient to reasonably determine
his or her eligibility.

(C) A statement that the owner or provider identified pursuant
to subparagraph (A) of paragraph (1) reserves the right to provide
a raincheck, or a substitute or like incentive, if those rights are
reserved.

(D) A statement that a recipient who receives an offered
incentive may request and will receive evidence showing that the
incentive provided matches the incentive randomly or otherwise
selected for distribution to that recipient.

(E) All other rules, terms, and conditions of the offer, plan, or
program.

(b) It is unlawful for any person making an offer subject to
subdivision (a), or any employee, agent, or independent contractor
employed or authorized by that person, to offer any incentive when
the person knows or has reason to know that the offered item will
not be available in a sufficient quantity based upon the reasonably
anticipated response to the offer.

(c) It is unlawful for any person making an offer subject to
subdivision (a), or any employee, agent, or independent contractor
employed or authorized by that person, to fail to provide any
offered incentive which any recipient who has responded to the
offer in the manner specified therein, who has performed the
requirements disclosed therein, and who has met the qualifications
described therein, is entitled to receive, unless the offered incentive
is not reasonably available and the offer discloses the reservation
of a right to provide a raincheck, or a like or substitute incentive,
if the offered incentive is unavailable.

(d) If the person making an offer subject to subdivision (a) is
unable to provide an offered incentive because of limitations of
supply, quantity, or quality that were not reasonably foreseeable
or controllable by the person making the offer, the person making
the offer shall inform the recipient of the recipient’s right to receive
a raincheck for the incentive offered, unless the person making
the offer knows or has reasonable basis for knowing that the
incentive will not be reasonably available and shall inform the
recipient of the recipient’s right to at least one of the following
additional options:

(1) The person making the offer will provide a like incentive
of equivalent or greater retail value or a raincheck therefor.

(2) The person making the offer will provide a substitute
incentive of equivalent or greater retail value.

(3) The person making the offer will provide a raincheck for
the like or substitute incentive.

(e) If a raincheck is provided, the person making an offer subject
to subdivision (a) shall, within a reasonable time, and in no event
later than 80 days, deliver the agreed incentive to the recipient’s
address without additional cost or obligation to the recipient, unless
the incentive for which the raincheck is provided remains
unavailable because of limitations of supply, quantity, or quality
not reasonably foreseeable or controllable by the person making
the offer. In that case, the person making the offer shall, not later
than 30 days after the expiration of the 80 days, deliver a like
incentive of equal or greater retail value or, if an incentive is not
reasonably available to the person making the offer, a substitute
incentive of equal or greater retail value.

(f) Upon the request of a recipient who has received or claims
a right to receive any offered incentive, the person making an offer
subject to subdivision (a) shall furnish to the person sufficient
evidence showing that the incentive provided matches the incentive
randomly or otherwise selected for distribution to that recipient.

(g) It is unlawful for any person making an offer subject to
subdivision (a), or any employee, agent, or independent contractor
employed or authorized by that person, to:

(1) Use any printing styles, graphics, layouts, text, colors, or
formats on envelopes or on the offer that imply, create an
appearance, or would lead a reasonable person to believe, that the
offer originates from or is issued by or on behalf of a government
or public agency, public utility, public organization, insurance
company, credit reporting agency, bill collecting company, or law
firm, unless the same is true.

(2) Misrepresent the size, quantity, identity, value, or qualities
of any incentive.

(3) Misrepresent in any manner the odds of receiving any
particular incentive.

(4) Represent directly or by implication that the number of
participants has been significantly limited or that any person has
been selected to receive a particular incentive unless that is the
fact.

(5) Label any offer a notice of termination or notice of
cancellation.

(6) Misrepresent, in any manner, the offer, plan, or program or
the affiliation, connection, association, or contractual relationship
between the person making the offer and the owner or provider,
if they are not the same.

(h) If the major incentives are awarded or given at random, by
the assignment of a number to the incentives, that number shall
be actually assigned by the party contractually responsible for
doing so. The person making an offer subject to subdivision (a)
hereof, or the agent, employee, or independent contractor employed
or authorized by that person, if any, shall maintain, for a period of
one year after the date the offer is made, the records that show that
the winning numbers or opportunity to receive the major incentives
have been deposited in the mail or otherwise made available to
recipients in accordance with the odds statement provided pursuant
to subparagraph (C) of paragraph (1) of subdivision (a) hereof.
The records shall be made available to the Attorney General within
30 days after written request therefor. Postal receipt records,
affidavits of mailing, or a list of winners or recipients of the major
incentives shall be deemed to satisfy the requirements of this
section.

SEC. 3.  

Section 50 of the Civil Code is amended to read:

50.  

Any necessary force may be used to protect from wrongful
injury the person or property of oneself, or of a spouse, child,
parent, or other relative, or member of one’s family, or of a ward,
servant, master, or guest.

SEC. 4.  

Section 51.3 of the Civil Code is amended to read:

51.3.  

(a) The Legislature finds and declares that this section
is essential to establish and preserve specially designed accessible
housing for senior citizens. There are senior citizens who need
special living environments and services, and find that there is an
inadequate supply of this type of housing in the state.

(b) For the purposes of this section, the following definitions
apply:

(1) “Qualifying resident” or “senior citizen” means a person 62
years of age or older, or 55 years of age or older in a senior citizen
housing development.

(2) “Qualified permanent resident” means a person who meets
both of the following requirements:

(A) Was residing with the qualifying resident or senior citizen
prior to the death, hospitalization, or other prolonged absence of,
or the dissolution of marriage with, the qualifying resident or senior
citizen.

(B) Was 45 years of age or older, or was a spouse, cohabitant,
or person providing primary physical or economic support to the
qualifying resident or senior citizen.

(3) “Qualified permanent resident” also means a disabled person
or person with a disabling illness or injury who is a child or
grandchild of the senior citizen or a qualified permanent resident
as defined in paragraph (2) who needs to live with the senior citizen
or qualified permanent resident because of the disabling condition,
illness, or injury. For purposes of this section, “disabled” means
a person who has a disability as defined in subdivision (b) of
Section 54. A “disabling injury or illness” means an illness or
injury which results in a condition meeting the definition of
disability set forth in subdivision (b) of Section 54.

(A) For any person who is a qualified permanent resident under
this paragraph whose disabling condition ends, the owner, board
of directors, or other governing body may require the formerly
disabled resident to cease residing in the development upon receipt
of six months’ written notice; provided, however, that the owner,
board of directors, or other governing body may allow the person
to remain a resident for up to one year after the disabling condition
ends.

(B) The owner, board of directors, or other governing body of
the senior citizen housing development may take action to prohibit
or terminate occupancy by a person who is a qualified permanent
resident under this paragraph if the owner, board of directors, or
other governing body finds, based on credible and objective
evidence, that the person is likely to pose a significant threat to
the health or safety of others that cannot be ameliorated by means
of a reasonable accommodation; provided, however, that the action
to prohibit or terminate the occupancy may be taken only after
doing both of the following:

(i) Providing reasonable notice to and an opportunity to be heard
for the disabled person whose occupancy is being challenged, and
reasonable notice to the coresident parent or grandparent of that
person.

(ii) Giving due consideration to the relevant, credible, and
objective information provided in the hearing. The evidence shall
be taken and held in a confidential manner, pursuant to a closed
session, by the owner, board of directors, or other governing body
in order to preserve the privacy of the affected persons.

The affected persons shall be entitled to have present at the
hearing an attorney or any other person authorized by them to
speak on their behalf or to assist them in the matter.

(4) “Senior citizen housing development” means a residential
development developed, substantially rehabilitated, or substantially
renovated for, senior citizens that has at least 35 dwelling units.
Any senior citizen housing development which is required to obtain
a public report under Section 11010 of the Business and Professions
Code and which submits its application for a public report after
July 1, 2001, shall be required to have been issued a public report
as a senior citizen housing development under Section 11010.05
of the Business and Professions Code. No housing development
constructed prior to January 1, 1985, shall fail to qualify as a senior
citizen housing development because it was not originally
developed or put to use for occupancy by senior citizens.

(5) “Dwelling unit” or “housing” means any residential
accommodation other than a mobilehome.

(6) “Cohabitant” refers to persons who live together as spouses
or persons who are domestic partners within the meaning of Section
297 of the Family Code.

(7) “Permitted health care resident” means a person hired to
provide live-in, long-term, or terminal health care to a qualifying
resident, or a family member of the qualifying resident providing
that care. For the purposes of this section, the care provided by a
permitted health care resident must be substantial in nature and
must provide either assistance with necessary daily activities or
medical treatment, or both.

A permitted health care resident shall be entitled to continue his
or her occupancy, residency, or use of the dwelling unit as a
permitted resident in the absence of the senior citizen from the
dwelling unit only if both of the following are applicable:

(A) The senior citizen became absent from the dwelling due to
hospitalization or other necessary medical treatment and expects
to return to his or her residence within 90 days from the date the
absence began.

(B) The absent senior citizen or an authorized person acting for
the senior citizen submits a written request to the owner, board of
directors, or governing board stating that the senior citizen desires
that the permitted health care resident be allowed to remain in
order to be present when the senior citizen returns to reside in the
development.

Upon written request by the senior citizen or an authorized
person acting for the senior citizen, the owner, board of directors,
or governing board shall have the discretion to allow a permitted
health care resident to remain for a time period longer than 90 days
from the date that the senior citizen’s absence began, if it appears
that the senior citizen will return within a period of time not to
exceed an additional 90 days.

(c) The covenants, conditions, and restrictions and other
documents or written policy shall set forth the limitations on
occupancy, residency, or use on the basis of age. Any such
limitation shall not be more exclusive than to require that one
person in residence in each dwelling unit may be required to be a
senior citizen and that each other resident in the same dwelling
unit may be required to be a qualified permanent resident, a
permitted health care resident, or a person under 55 years of age
whose occupancy is permitted under subdivision (h) of this section
or under subdivision (b) of Section 51.4. That limitation may be
less exclusive, but shall at least require that the persons
commencing any occupancy of a dwelling unit include a senior
citizen who intends to reside in the unit as his or her primary
residence on a permanent basis. The application of the rules set
forth in this subdivision regarding limitations on occupancy may
result in less than all of the dwellings being actually occupied by
a senior citizen.

(d) The covenants, conditions, and restrictions or other
documents or written policy shall permit temporary residency, as
a guest of a senior citizen or qualified permanent resident, by a
person of less than 55 years of age for periods of time, not less
than 60 days in any year, that are specified in the covenants,
conditions, and restrictions or other documents or written policy.

(e) Upon the death or dissolution of marriage, or upon
hospitalization, or other prolonged absence of the qualifying
resident, any qualified permanent resident shall be entitled to
continue his or her occupancy, residency, or use of the dwelling
unit as a permitted resident. This subdivision shall not apply to a
permitted health care resident.

(f) The condominium, stock cooperative, limited-equity housing
cooperative, planned development, or multiple-family residential
rental property shall have been developed for, and initially been
put to use as, housing for senior citizens, or shall have been
substantially rehabilitated or renovated for, and immediately
afterward put to use as, housing for senior citizens, as provided in
this section; provided, however, that no housing development
constructed prior to January 1, 1985, shall fail to qualify as a senior
citizen housing development because it was not originally
developed for or originally put to use for occupancy by senior
citizens.

(g) The covenants, conditions, and restrictions or other
documents or written policies applicable to any condominium,
stock cooperative, limited-equity housing cooperative, planned
development, or multiple-family residential property that contained
age restrictions on January 1, 1984, shall be enforceable only to
the extent permitted by this section, notwithstanding lower age
restrictions contained in those documents or policies.

(h) Any person who has the right to reside in, occupy, or use
the housing or an unimproved lot subject to this section on January
1, 1985, shall not be deprived of the right to continue that
residency, occupancy, or use as the result of the enactment of this
section.

(i) The covenants, conditions, and restrictions or other
documents or written policy of the senior citizen housing
development shall permit the occupancy of a dwelling unit by a
permitted health care resident during any period that the person is
actually providing live-in, long-term, or hospice health care to a
qualifying resident for compensation. For purposes of this
subdivision, the term “for compensation” shall include provisions
of lodging and food in exchange for care.

(j) Notwithstanding any other provision of this section, this
section shall not apply to the County of Riverside.

SEC. 5.  

Section 51.11 of the Civil Code is amended to read:

51.11.  

(a) The Legislature finds and declares that this section
is essential to establish and preserve housing for senior citizens.
There are senior citizens who need special living environments,
and find that there is an inadequate supply of this type of housing
in the state.

(b) For the purposes of this section, the following definitions
apply:

(1) “Qualifying resident” or “senior citizen” means a person 62
years of age or older, or 55 years of age or older in a senior citizen
housing development.

(2) “Qualified permanent resident” means a person who meets
both of the following requirements:

(A) Was residing with the qualifying resident or senior citizen
prior to the death, hospitalization, or other prolonged absence of,
or the dissolution of marriage with, the qualifying resident or senior
citizen.

(B) Was 45 years of age or older, or was a spouse, cohabitant,
or person providing primary physical or economic support to the
qualifying resident or senior citizen.

(3) “Qualified permanent resident” also means a disabled person
or person with a disabling illness or injury who is a child or
grandchild of the senior citizen or a qualified permanent resident
as defined in paragraph (2) who needs to live with the senior citizen
or qualified permanent resident because of the disabling condition,
illness, or injury. For purposes of this section, “disabled” means
a person who has a disability as defined in subdivision (b) of
Section 54. A “disabling injury or illness” means an illness or
injury which results in a condition meeting the definition of
disability set forth in subdivision (b) of Section 54.

(A) For any person who is a qualified permanent resident under
paragraph (3) whose disabling condition ends, the owner, board
of directors, or other governing body may require the formerly
disabled resident to cease residing in the development upon receipt
of six months’ written notice; provided, however, that the owner,
board of directors, or other governing body may allow the person
to remain a resident for up to one year, after the disabling condition
ends.

(B) The owner, board of directors, or other governing body of
the senior citizen housing development may take action to prohibit
or terminate occupancy by a person who is a qualified permanent
resident under paragraph (3) if the owner, board of directors, or
other governing body finds, based on credible and objective
evidence, that the person is likely to pose a significant threat to
the health or safety of others that cannot be ameliorated by means
of a reasonable accommodation; provided, however, that action
to prohibit or terminate the occupancy may be taken only after
doing both of the following:

(i) Providing reasonable notice to and an opportunity to be heard
for the disabled person whose occupancy is being challenged, and
reasonable notice to the coresident parent or grandparent of that
person.

(ii) Giving due consideration to the relevant, credible, and
objective information provided in that hearing. The evidence shall
be taken and held in a confidential manner, pursuant to a closed
session, by the owner, board of directors, or other governing body
in order to preserve the privacy of the affected persons.

The affected persons shall be entitled to have present at the
hearing an attorney or any other person authorized by them to
speak on their behalf or to assist them in the matter.

(4) “Senior citizen housing development” means a residential
development developed with more than 20 units as a senior
community by its developer and zoned as a senior community by
a local governmental entity, or characterized as a senior community
in its governing documents, as these are defined in Section 4150,
or qualified as a senior community under the federal Fair Housing
Amendments Act of 1988, as amended. Any senior citizen housing
development which is required to obtain a public report under
Section 11010 of the Business and Professions Code and which
submits its application for a public report after July 1, 2001, shall
be required to have been issued a public report as a senior citizen
housing development under Section 11010.05 of the Business and
Professions Code.

(5) “Dwelling unit” or “housing” means any residential
accommodation other than a mobilehome.

(6) “Cohabitant” refers to persons who live together as spouses
or persons who are domestic partners within the meaning of Section
297 of the Family Code.

(7) “Permitted health care resident” means a person hired to
provide live-in, long-term, or terminal health care to a qualifying
resident, or a family member of the qualifying resident providing
that care. For the purposes of this section, the care provided by a
permitted health care resident must be substantial in nature and
must provide either assistance with necessary daily activities or
medical treatment, or both.

A permitted health care resident shall be entitled to continue his
or her occupancy, residency, or use of the dwelling unit as a
permitted resident in the absence of the senior citizen from the
dwelling unit only if both of the following are applicable:

(A) The senior citizen became absent from the dwelling due to
hospitalization or other necessary medical treatment and expects
to return to his or her residence within 90 days from the date the
absence began.

(B) The absent senior citizen or an authorized person acting for
the senior citizen submits a written request to the owner, board of
directors, or governing board stating that the senior citizen desires
that the permitted health care resident be allowed to remain in
order to be present when the senior citizen returns to reside in the
development.

Upon written request by the senior citizen or an authorized
person acting for the senior citizen, the owner, board of directors,
or governing board shall have the discretion to allow a permitted
health care resident to remain for a time period longer than 90 days
from the date that the senior citizen’s absence began, if it appears
that the senior citizen will return within a period of time not to
exceed an additional 90 days.

(c) The covenants, conditions, and restrictions and other
documents or written policy shall set forth the limitations on
occupancy, residency, or use on the basis of age. Any limitation
shall not be more exclusive than to require that one person in
residence in each dwelling unit may be required to be a senior
citizen and that each other resident in the same dwelling unit may
be required to be a qualified permanent resident, a permitted health
care resident, or a person under 55 years of age whose occupancy
is permitted under subdivision (g) of this section or subdivision
(b) of Section 51.12. That limitation may be less exclusive, but
shall at least require that the persons commencing any occupancy
of a dwelling unit include a senior citizen who intends to reside in
the unit as his or her primary residence on a permanent basis. The
application of the rules set forth in this subdivision regarding
limitations on occupancy may result in less than all of the dwellings
being actually occupied by a senior citizen.

(d) The covenants, conditions, and restrictions or other
documents or written policy shall permit temporary residency, as
a guest of a senior citizen or qualified permanent resident, by a
person of less than 55 years of age for periods of time, not more
than 60 days in any year, that are specified in the covenants,
conditions, and restrictions or other documents or written policy.

(e) Upon the death or dissolution of marriage, or upon
hospitalization, or other prolonged absence of the qualifying
resident, any qualified permanent resident shall be entitled to
continue his or her occupancy, residency, or use of the dwelling
unit as a permitted resident. This subdivision shall not apply to a
permitted health care resident.

(f) The covenants, conditions, and restrictions or other
documents or written policies applicable to any condominium,
stock cooperative, limited-equity housing cooperative, planned
development, or multiple-family residential property that contained
age restrictions on January 1, 1984, shall be enforceable only to
the extent permitted by this section, notwithstanding lower age
restrictions contained in those documents or policies.

(g) Any person who has the right to reside in, occupy, or use
the housing or an unimproved lot subject to this section on or after
January 1, 1985, shall not be deprived of the right to continue that
residency, occupancy, or use as the result of the enactment of this
section by Chapter 1147 of the Statutes of 1996.

(h) A housing development may qualify as a senior citizen
housing development under this section even though, as of January
1, 1997, it does not meet the definition of a senior citizen housing
development specified in subdivision (b), if the development
complies with that definition for every unit that becomes occupied
after January 1, 1997, and if the development was once within that
definition, and then became noncompliant with the definition as
the result of any one of the following:

(1) The development was ordered by a court or a local, state,
or federal enforcement agency to allow persons other than
qualifying residents, qualified permanent residents, or permitted
health care residents to reside in the development.

(2) The development received a notice of a pending or proposed
action in, or by, a court, or a local, state, or federal enforcement
agency, which action could have resulted in the development being
ordered by a court or a state or federal enforcement agency to allow
persons other than qualifying residents, qualified permanent
residents, or permitted health care residents to reside in the
development.

(3) The development agreed to allow persons other than
qualifying residents, qualified permanent residents, or permitted
health care residents to reside in the development by entering into
a stipulation, conciliation agreement, or settlement agreement with
a local, state, or federal enforcement agency or with a private party
who had filed, or indicated an intent to file, a complaint against
the development with a local, state, or federal enforcement agency,
or file an action in a court.

(4) The development allowed persons other than qualifying
residents, qualified permanent residents, or permitted health care
residents to reside in the development on the advice of counsel in
order to prevent the possibility of an action being filed by a private
party or by a local, state, or federal enforcement agency.

(i) The covenants, conditions, and restrictions or other
documents or written policy of the senior citizen housing
development shall permit the occupancy of a dwelling unit by a
permitted health care resident during any period that the person is
actually providing live-in, long-term, or hospice health care to a
qualifying resident for compensation.

(j) This section shall only apply to the County of Riverside.

SEC. 6.  

Section 682 of the Civil Code is amended to read:

682.  

The ownership of property by several persons is either:

1. Of joint interest;

2. Of partnership interests;

3. Of interests in common;

4. Of community interest of spouses.

SEC. 7.  

Section 682.1 of the Civil Code is amended to read:

682.1.  

(a) Community property of spouses, when expressly
declared in the transfer document to be community property with
right of survivorship, and which may be accepted in writing on
the face of the document by a statement signed or initialed by the
grantees, shall, upon the death of one of the spouses, pass to the
survivor, without administration, pursuant to the terms of the
instrument, subject to the same procedures, as property held in
joint tenancy. Prior to the death of either spouse, the right of
survivorship may be terminated pursuant to the same procedures
by which a joint tenancy may be severed. Part I (commencing with
Section 5000) of Division 5 of the Probate Code and Chapter 2
(commencing with Section 13540), Chapter 3 (commencing with
Section 13550) and Chapter 3.5 (commencing with Section 13560)
of Part 2 of Division 8 of the Probate Code apply to this property.

(b) This section does not apply to a joint account in a financial
institution to which Part 2 (commencing with Section 5100) of
Division 5 of the Probate Code applies.

(c) This section shall become operative on July 1, 2001, and
shall apply to instruments created on or after that date.

SEC. 8.  

Section 683 of the Civil Code is amended to read:

683.  

(a) A joint interest is one owned by two or more persons
in equal shares, by a title created by a single will or transfer, when
expressly declared in the will or transfer to be a joint tenancy, or
by transfer from a sole owner to himself or herself and others, or
from tenants in common or joint tenants to themselves or some of
them, or to themselves or any of them and others, or from spouses,
when holding title as community property or otherwise to
themselves or to themselves and others or to one of them and to
another or others, when expressly declared in the transfer to be a
joint tenancy, or when granted or devised to executors or trustees
as joint tenants. A joint tenancy in personal property may be created
by a written transfer, instrument, or agreement.

(b) Provisions of this section do not apply to a joint account in
a financial institution if Part 2 (commencing with Section 5100)
of Division 5 of the Probate Code applies to such account.

SEC. 9.  

Section 1099 of the Civil Code is amended to read:

1099.  

(a) As soon as practical before transfer of title of any
real property or the execution of a real property sales contract as
defined in Section 2985, the transferor, fee owner, or his agent,
shall deliver to the transferee a copy of a structural pest control
inspection report prepared pursuant to Section 8516 of the Business
and Professions Code upon which any certification in accordance
with Section 8519 of the Business and Professions Code may be
made, provided that certification or preparation of a report is a
condition of the contract effecting that transfer, or is a requirement
imposed as a condition of financing such transfer.

(b) If a notice of work completed as contemplated by Section
8518 of the Business and Professions Code, indicating action by
a structural pest control licensee in response to an inspection report
delivered or to be delivered under provisions of subdivision (a),
or a certification pursuant to Section 8519 of the Business and
Professions Code, has been received by a transferor or his agent
before transfer of title or execution of a real property sales contract
as defined in Section 2985, it shall be furnished to the transferee
as soon as practical before transfer of title or the execution of such
real property sales contract.

(c) Delivery to a transferee as used in this section means delivery
in person or by mail to the transferee himself or any person
authorized to act for him in the transaction or to such additional
transferees who have requested such delivery from the transferor
or his agent in writing. For the purposes of this section, delivery
to either spouse shall be deemed delivery to a transferee, unless
the contract affecting the transfer states otherwise.

(d) No transfer of title of real property shall be invalidated solely
because of the failure of any person to comply with the provisions
of this section unless such failure is an act or omission which would
be a valid ground for rescission of such transfer in the absence of
this section.

SEC. 10.  

Section 1569 of the Civil Code is amended to read:

1569.  

Duress consists in:

1. Unlawful confinement of the person of the party, or of the
spouse of such party, or of an ancestor, descendant, or adopted
child of such party or spouse;

2. Unlawful detention of the property of any such person; or,

3. Confinement of such person, lawful in form, but fraudulently
obtained, or fraudulently made unjustly harassing or oppressive.

SEC. 11.  

Section 3390 of the Civil Code is amended to read:

3390.  

The following obligations cannot be specifically
enforced:

1. An obligation to render personal service;

2. An obligation to employ another in personal service;

3. An agreement to perform an act which the party has not power
lawfully to perform when required to do so;

4. An agreement to procure the act or consent of the spouse of
the contracting party, or of any other third person; or,

5. An agreement, the terms of which are not sufficiently certain
to make the precise act which is to be done clearly ascertainable.

SEC. 12.  

Section 371 of the Code of Civil Procedure is
amended to read:

371.  

If spouses are sued together, each may defend for his or
her own right, but if one spouse neglects to defend, the other spouse
may defend for that spouse’s right also.

SEC. 13.  

Section 116.540 of the Code of Civil Procedure is
amended to read:

116.540.  

(a) Except as permitted by this section, no individual
other than the plaintiff and the defendant may take part in the
conduct or defense of a small claims action.

(b) Except as additionally provided in subdivision (i), a
corporation may appear and participate in a small claims action
only through a regular employee, or a duly appointed or elected
officer or director, who is employed, appointed, or elected for
purposes other than solely representing the corporation in small
claims court.

(c) A party who is not a corporation or a natural person may
appear and participate in a small claims action only through a
regular employee, or a duly appointed or elected officer or director,
or in the case of a partnership, a partner, engaged for purposes
other than solely representing the party in small claims court.

(d) If a party is an individual doing business as a sole
proprietorship, the party may appear and participate in a small
claims action by a representative and without personally appearing
if both of the following conditions are met:

(1) The claim can be proved or disputed by evidence of an
account that constitutes a business record as defined in Section
1271 of the Evidence Code, and there is no other issue of fact in
the case.

(2) The representative is a regular employee of the party for
purposes other than solely representing the party in small claims
actions and is qualified to testify to the identity and mode of
preparation of the business record.

(e) A plaintiff is not required to personally appear, and may
submit declarations to serve as evidence supporting his or her claim
or allow another individual to appear and participate on his or her
behalf, if (1) the plaintiff is serving on active duty in the United
States Armed Forces outside this state, (2) the plaintiff was
assigned to his or her duty station after his or her claim arose, (3)
the assignment is for more than six months, (4) the representative
is serving without compensation, and (5) the representative has
appeared in small claims actions on behalf of others no more than
four times during the calendar year. The defendant may file a claim
in the same action in an amount not to exceed the jurisdictional
limits stated in Sections 116.220, 116.221, and 116.231.

(f) A party incarcerated in a county jail, a Department of
Corrections and Rehabilitation facility, or a Division of Juvenile
Facilities facility is not required to personally appear, and may
submit declarations to serve as evidence supporting his or her
claim, or may authorize another individual to appear and participate
on his or her behalf if that individual is serving without
compensation and has appeared in small claims actions on behalf
of others no more than four times during the calendar year.

(g) A defendant who is a nonresident owner of real property
may defend against a claim relating to that property without
personally appearing by (1) submitting written declarations to
serve as evidence supporting his or her defense, (2) allowing
another individual to appear and participate on his or her behalf if
that individual is serving without compensation and has appeared
in small claims actions on behalf of others no more than four times
during the calendar year, or (3) taking the action described in both
(1) and (2).

(h) A party who is an owner of rental real property may appear
and participate in a small claims action through a property agent
under contract with the owner to manage the rental of that property,
if (1) the owner has retained the property agent principally to
manage the rental of that property and not principally to represent
the owner in small claims court, and (2) the claim relates to the
rental property.

(i) A party that is an association created to manage a common
interest development, as defined in Section 4100 or in Sections
6528 and 6534 of the Civil Code, may appear and participate in a
small claims action through an agent, a management company
representative, or bookkeeper who appears on behalf of that
association.

(j) At the hearing of a small claims action, the court shall require
any individual who is appearing as a representative of a party under
subdivisions (b) to (i), inclusive, to file a declaration stating (1)
that the individual is authorized to appear for the party, and (2)
the basis for that authorization. If the representative is appearing
under subdivision (b), (c), (d), (h), or (i), the declaration also shall
state that the individual is not employed solely to represent the
party in small claims court. If the representative is appearing under
subdivision (e), (f), or (g), the declaration also shall state that the
representative is serving without compensation, and has appeared
in small claims actions on behalf of others no more than four times
during the calendar year.

(k) A spouse who sues or who is sued with his or her spouse
may appear and participate on behalf of his or her spouse if (1)
the claim is a joint claim, (2) the represented spouse has given his
or her consent, and (3) the court determines that the interests of
justice would be served.

(l) If the court determines that a party cannot properly present
his or her claim or defense and needs assistance, the court may in
its discretion allow another individual to assist that party.

(m) Nothing in this section shall operate or be construed to
authorize an attorney to participate in a small claims action except
as expressly provided in Section 116.530.

SEC. 14.  

Section 703.140 of the Code of Civil Procedure is
amended to read:

703.140.  

(a) In a case under Title 11 of the United States Code,
all of the exemptions provided by this chapter, including the
homestead exemption, other than the provisions of subdivision (b)
are applicable regardless of whether there is a money judgment
against the debtor or whether a money judgment is being enforced
by execution sale or any other procedure, but the exemptions
provided by subdivision (b) may be elected in lieu of all other
exemptions provided by this chapter, as follows:

(1) If spouses are joined in the petition, they jointly may elect
to utilize the applicable exemption provisions of this chapter other
than the provisions of subdivision (b), or to utilize the applicable
exemptions set forth in subdivision (b), but not both.

(2) If the petition is filed individually, and not jointly, for a
spouse, the exemptions provided by this chapter other than the
provisions of subdivision (b) are applicable, except that, if both
of the spouses effectively waive in writing the right to claim, during
the period the case commenced by filing the petition is pending,
the exemptions provided by the applicable exemption provisions
of this chapter, other than subdivision (b), in any case commenced
by filing a petition for either of them under Title 11 of the United
States Code, then they may elect to instead utilize the applicable
exemptions set forth in subdivision (b).

(3) If the petition is filed for an unmarried person, that person
may elect to utilize the applicable exemption provisions of this
chapter other than subdivision (b), or to utilize the applicable
exemptions set forth in subdivision (b), but not both.

(b) The following exemptions may be elected as provided in
subdivision (a):

(1) The debtor’s aggregate interest, not to exceed twenty-four
thousand sixty dollars ($24,060) in value, in real property or
personal property that the debtor or a dependent of the debtor uses
as a residence, in a cooperative that owns property that the debtor
or a dependent of the debtor uses as a residence.

(2) The debtor’s interest, not to exceed four thousand eight
hundred dollars ($4,800) in value, in one or more motor vehicles.

(3) The debtor’s interest, not to exceed six hundred dollars
($600) in value in any particular item, in household furnishings,
household goods, wearing apparel, appliances, books, animals,
crops, or musical instruments, that are held primarily for the
personal, family, or household use of the debtor or a dependent of
the debtor.

(4) The debtor’s aggregate interest, not to exceed one thousand
four hundred twenty-five dollars ($1,425) in value, in jewelry held
primarily for the personal, family, or household use of the debtor
or a dependent of the debtor.

(5) The debtor’s aggregate interest, not to exceed in value one
thousand two hundred eighty dollars ($1,280) plus any unused
amount of the exemption provided under paragraph (1), in any
property.

(6) The debtor’s aggregate interest, not to exceed seven thousand
one hundred seventy-five dollars ($7,175) in value, in any
implements, professional books, or tools of the trade of the debtor
or the trade of a dependent of the debtor.

(7) Any unmatured life insurance contract owned by the debtor,
other than a credit life insurance contract.

(8) The debtor’s aggregate interest, not to exceed in value twelve
thousand eight hundred sixty dollars ($12,860), in any accrued
dividend or interest under, or loan value of, any unmatured life
insurance contract owned by the debtor under which the insured
is the debtor or an individual of whom the debtor is a dependent.

(9) Professionally prescribed health aids for the debtor or a
dependent of the debtor.

(10) The debtor’s right to receive any of the following:

(A) A social security benefit, unemployment compensation, or
a local public assistance benefit.

(B) A veterans’ benefit.

(C) A disability, illness, or unemployment benefit.

(D) Alimony, support, or separate maintenance, to the extent
reasonably necessary for the support of the debtor and any
dependent of the debtor.

(E) A payment under a stock bonus, pension, profit-sharing,
annuity, or similar plan or contract on account of illness, disability,
death, age, or length of service, to the extent reasonably necessary
for the support of the debtor and any dependent of the debtor,
unless all of the following apply:

(i) That plan or contract was established by or under the auspices
of an insider that employed the debtor at the time the debtor’s
rights under the plan or contract arose.

(ii) The payment is on account of age or length of service.

(iii) That plan or contract does not qualify under Section 401(a),
403(a), 403(b), 408, or 408A of the Internal Revenue Code of
1986.

(11) The debtor’s right to receive, or property that is traceable
to, any of the following:

(A) An award under a crime victim’s reparation law.

(B) A payment on account of the wrongful death of an individual
of whom the debtor was a dependent, to the extent reasonably
necessary for the support of the debtor and any dependent of the
debtor.

(C) A payment under a life insurance contract that insured the
life of an individual of whom the debtor was a dependent on the
date of that individual’s death, to the extent reasonably necessary
for the support of the debtor and any dependent of the debtor.

(D) A payment, not to exceed twenty-four thousand sixty dollars
($24,060), on account of personal bodily injury of the debtor or
an individual of whom the debtor is a dependent.

(E) A payment in compensation of loss of future earnings of
the debtor or an individual of whom the debtor is or was a
dependent, to the extent reasonably necessary for the support of
the debtor and any dependent of the debtor.

SEC. 15.  

Section 704.930 of the Code of Civil Procedure is
amended to read:

704.930.  

(a) A homestead declaration recorded pursuant to
this article shall contain all of the following:

(1) The name of the declared homestead owner. Spouses both
may be named as declared homestead owners in the same
homestead declaration if each owns an interest in the dwelling
selected as the declared homestead.

(2) A description of the declared homestead.

(3) A statement that the declared homestead is the principal
dwelling of the declared homestead owner or such person’s spouse,
and that the declared homestead owner or such person’s spouse
resides in the declared homestead on the date the homestead
declaration is recorded.

(b) The homestead declaration shall be executed and
acknowledged in the manner of an acknowledgment of a
conveyance of real property by at least one of the following
persons:

(1) The declared homestead owner.

(2) The spouse of the declared homestead owner.

(3) The guardian or conservator of the person or estate of either
of the persons listed in paragraph (1) or (2). The guardian or
conservator may execute, acknowledge, and record a homestead
declaration without the need to obtain court authorization.

(4) A person acting under a power of attorney or otherwise
authorized to act on behalf of a person listed in paragraph (1) or
(2).

(c) The homestead declaration shall include a statement that the
facts stated in the homestead declaration are known to be true as
of the personal knowledge of the person executing and
acknowledging the homestead declaration. If the homestead
declaration is executed and acknowledged by a person listed in
paragraph (3) or (4) of subdivision (b), it shall also contain a
statement that the person has authority to so act on behalf of the
declared homestead owner or the spouse of the declared homestead
owner and the source of the person’s authority.

SEC. 16.  

Section 158 of the Corporations Code is amended to
read:

158.  

(a) “Close corporation” means a corporation, including
a close social purpose corporation, whose articles contain, in
addition to the provisions required by Section 202, a provision that
all of the corporation’s issued shares of all classes shall be held of
record by not more than a specified number of persons, not
exceeding 35, and a statement “This corporation is a close
corporation.”

(b) The special provisions referred to in subdivision (a) may be
included in the articles by amendment, but if such amendment is
adopted after the issuance of shares only by the affirmative vote
of all of the issued and outstanding shares of all classes.

(c) The special provisions referred to in subdivision (a) may be
deleted from the articles by amendment, or the number of
shareholders specified may be changed by amendment, but if such
amendment is adopted after the issuance of shares, only by the
affirmative vote of at least two-thirds of each class of the
outstanding shares; provided, however, that the articles may
provide for a lesser vote, but not less than a majority of the
outstanding shares, or may deny a vote to any class, or both.

(d) In determining the number of shareholders for the purposes
of the provision in the articles authorized by this section, spouses
and the personal representative of either shall be counted as one
regardless of how shares may be held by either or both of them, a
trust or personal representative of a decedent holding shares shall
be counted as one regardless of the number of trustees or
beneficiaries, and a partnership or corporation or business
association holding shares shall be counted as one (except that any
such trust or entity the primary purpose of which was the
acquisition or voting of the shares shall be counted according to
the number of beneficial interests therein).

(e) A corporation shall cease to be a close corporation upon the
filing of an amendment to its articles pursuant to subdivision (c)
or, if it shall have more than the maximum number of holders of
record of its shares specified in its articles as a result of an inter
vivos transfer of shares which is not void under subdivision (d) of
Section 418, the transfer of shares on distribution by will or
pursuant to the laws of descent and distribution, the dissolution of
a partnership or corporation or business association, or the
termination of a trust which holds shares, by court decree upon
dissolution of a marriage or otherwise by operation of law.
Promptly upon acquiring more than the specified number of holders
of record of its shares, a close corporation shall execute and file
an amendment to its articles deleting the special provisions referred
to in subdivision (a) and deleting any other provisions not
permissible for a corporation which is not a close corporation,
which amendment shall be promptly approved and filed by the
board and need not be approved by the outstanding shares.

(f) Nothing contained in this section shall invalidate any
agreement among the shareholders to vote for the deletion from
the articles of the special provisions referred to in subdivision (a)
upon the lapse of a specified period of time or upon the occurrence
of a certain event or condition or otherwise.

(g) The following sections contain specific references to close
corporations: Sections 186, 202, 204, 300, 418, 421, 1111, 1201,
1800, and 1904.

SEC. 17.  

Section 704 of the Corporations Code is amended to
read:

704.  

If shares stand of record in the names of two or more
persons, whether fiduciaries, members of a partnership, joint
tenants, tenants in common, spouses as community property,
tenants by the entirety, voting trustees, persons entitled to vote
under a shareholder voting agreement or otherwise, or if two or
more persons (including proxyholders) have the same fiduciary
relationship respecting the same shares, unless the secretary of the
corporation is given written notice to the contrary and is furnished
with a copy of the instrument or order appointing them or creating
the relationship wherein it is so provided, their acts with respect
to voting shall have the following effect:

 
(1) If only one votes, such act binds all;

 
(2) If more than one vote, the act of the majority so voting
binds all;

 
(3) If more than one vote, but the vote is evenly split on any
particular matter, each faction may vote the securities in question
proportionately.

If the instrument so filed or the registration of the shares shows
that any such tenancy is held in unequal interests, a majority or
even split for the purpose of this section shall be a majority or even
split in interest.

SEC. 18.  

Section 5612 of the Corporations Code is amended
to read:

5612.  

If a membership stands of record in the names of two or
more persons, whether fiduciaries, members of a partnership, joint
tenants, tenants in common, spouses as community property,
tenants by the entirety, or otherwise, or if two or more persons
(including proxyholders) have the same fiduciary relationship
respecting the same membership, unless the secretary of the
corporation is given written notice to the contrary and is furnished
with a copy of the instrument or order appointing them or creating
the relationship wherein it is so provided, their acts with respect
to voting shall have the following effect:

(a) If only one votes, such act binds all;

(b) If more than one vote, the act of the majority so voting binds
all.

SEC. 19.  

Section 7612 of the Corporations Code is amended
to read:

7612.  

If a membership stands of record in the names of two or
more persons, whether fiduciaries, members of a partnership, joint
tenants, tenants in common, spouses as community property,
tenants by the entirety, persons entitled to vote under a voting
agreement or otherwise, or if two or more persons (including
proxyholders) have the same fiduciary relationship respecting the
same membership, unless the secretary of the corporation is given
written notice to the contrary and is furnished with a copy of the
instrument or order appointing them or creating the relationship
wherein it is so provided, their acts with respect to voting shall
have the following effect:

(a) If only one votes, such act binds all; or

(b) If more than one vote, the act of the majority so voting binds
all.

SEC. 20.  

Section 12482 of the Corporations Code is amended
to read:

12482.  

Unless otherwise provided in the articles or bylaws, if
a membership stands of record in the names of two or more
persons, whether fiduciaries, members of a partnership, joint
tenants, tenants in common, spouses as community property,
tenants by the entirety, persons entitled to vote under a voting
agreement or otherwise, or if two or more persons have the same
fiduciary relationship respecting the same membership, unless the
secretary of the corporation is given written notice to the contrary
and is furnished with a copy of the instrument or order appointing
them or creating the relationship wherein it is so provided, their
acts with respect to voting shall have the following effect:

(a) If only one vote, such act binds all; or

(b) If more than one vote, the act of the majority so voting binds
all.

SEC. 21.  

Section 25102 of the Corporations Code is amended
to read:

25102.  

The following transactions are exempted from the
provisions of Section 25110:

(a) Any offer (but not a sale) not involving any public offering
and the execution and delivery of any agreement for the sale of
securities pursuant to the offer if (1) the agreement contains
substantially the following provision: “The sale of the securities
that are the subject of this agreement has not been qualified with
the Commissioner of Corporations of the State of California and
the issuance of the securities or the payment or receipt of any part
of the consideration therefor prior to the qualification is unlawful,
unless the sale of securities is exempt from the qualification by
Section 25100, 25102, or 25105 of the California Corporations
Code. The rights of all parties to this agreement are expressly
conditioned upon the qualification being obtained, unless the sale
is so exempt”; and (2) no part of the purchase price is paid or
received and none of the securities are issued until the sale of the
securities is qualified under this law unless the sale of securities
is exempt from the qualification by this section, Section 25100,
or 25105.

(b) Any offer (but not a sale) of a security for which a
registration statement has been filed under the Securities Act of
1933 but has not yet become effective, or for which an offering
statement under Regulation A has been filed but has not yet been
qualified, if no stop order or refusal order is in effect and no public
proceeding or examination looking towards an order is pending
under Section 8 of the act and no order under Section 25140 or
subdivision (a) of Section 25143 is in effect under this law.

(c) Any offer (but not a sale) and the execution and delivery of
any agreement for the sale of securities pursuant to the offer as
may be permitted by the commissioner upon application. Any
negotiating permit under this subdivision shall be conditioned to
the effect that none of the securities may be issued and none of
the consideration therefor may be received or accepted until the
sale of the securities is qualified under this law.

(d) Any transaction or agreement between the issuer and an
underwriter or among underwriters if the sale of the securities is
qualified, or exempt from qualification, at the time of distribution
thereof in this state, if any.

(e) Any offer or sale of any evidence of indebtedness, whether
secured or unsecured, and any guarantee thereof, in a transaction
not involving any public offering.

(f) Any offer or sale of any security in a transaction (other than
an offer or sale to a pension or profit-sharing trust of the issuer)
that meets each of the following criteria:

(1) Sales of the security are not made to more than 35 persons,
including persons not in this state.

(2) All purchasers either have a preexisting personal or business
relationship with the offeror or any of its partners, officers,
directors or controlling persons, or managers (as appointed or
elected by the members) if the offeror is a limited liability
company, or by reason of their business or financial experience or
the business or financial experience of their professional advisers
who are unaffiliated with and who are not compensated by the
issuer or any affiliate or selling agent of the issuer, directly or
indirectly, could be reasonably assumed to have the capacity to
protect their own interests in connection with the transaction.

(3) Each purchaser represents that the purchaser is purchasing
for the purchaser’s own account (or a trust account if the purchaser
is a trustee) and not with a view to or for sale in connection with
any distribution of the security.

(4) The offer and sale of the security is not accomplished by
the publication of any advertisement. The number of purchasers
referred to above is exclusive of any described in subdivision (i),
any officer, director, or affiliate of the issuer, or manager (as
appointed or elected by the members) if the issuer is a limited
liability company, and any other purchaser who the commissioner
designates by rule. For purposes of this section, spouses (together
with any custodian or trustee acting for the account of their minor
children) are counted as one person and a partnership, corporation,
or other organization that was not specifically formed for the
purpose of purchasing the security offered in reliance upon this
exemption, is counted as one person. The commissioner shall by
rule require the issuer to file a notice of transactions under this
subdivision.

The failure to file the notice or the failure to file the notice within
the time specified by the rule of the commissioner shall not affect
the availability of the exemption. Any issuer that fails to file the
notice as provided by rule of the commissioner shall, within 15
business days after discovery of the failure to file the notice or
after demand by the commissioner, whichever occurs first, file the
notice and pay to the commissioner a fee equal to the fee payable
had the transaction been qualified under Section 25110. Neither
the filing of the notice nor the failure by the commissioner to
comment thereon precludes the commissioner from taking any
action that the commissioner deems necessary or appropriate under
this division with respect to the offer and sale of the securities.

(g) Any offer or sale of conditional sale agreements, equipment
trust certificates, or certificates of interest or participation therein
or partial assignments thereof, covering the purchase of railroad
rolling stock or equipment or the purchase of motor vehicles,
aircraft, or parts thereof, in a transaction not involving any public
offering.

(h) Any offer or sale of voting common stock by a corporation
incorporated in any state if, immediately after the proposed sale
and issuance, there will be only one class of stock of the
corporation outstanding that is owned beneficially by no more than
35 persons, provided all of the following requirements have been
met:

(1) The offer and sale of the stock is not accompanied by the
publication of any advertisement, and no selling expenses have
been given, paid, or incurred in connection therewith.

(2) The consideration to be received by the issuer for the stock
to be issued consists of any of the following:

(A) Only assets (which may include cash) of an existing business
enterprise transferred to the issuer upon its initial organization, of
which all of the persons who are to receive the stock to be issued
pursuant to this exemption were owners during, and the enterprise
was operated for, a period of not less than one year immediately
preceding the proposed issuance, and the ownership of the
enterprise immediately prior to the proposed issuance was in the
same proportions as the shares of stock are to be issued.

(B) Only cash or cancellation of indebtedness for money
borrowed, or both, upon the initial organization of the issuer,
provided all of the stock is issued for the same price per share.

(C) Only cash, provided the sale is approved in writing by each
of the existing shareholders and the purchaser or purchasers are
existing shareholders.

(D) In a case where after the proposed issuance there will be
only one owner of the stock of the issuer, only any legal
consideration.

(3) No promotional consideration has been given, paid, or
incurred in connection with the issuance. Promotional consideration
means any consideration paid directly or indirectly to a person
who, acting alone or in conjunction with one or more other persons,
takes the initiative in founding and organizing the business or
enterprise of an issuer for services rendered in connection with the
founding or organizing.

(4) A notice in a form prescribed by rule of the commissioner,
signed by an active member of the State Bar of California, is filed
with or mailed for filing to the commissioner not later than 10
business days after receipt of consideration for the securities by
the issuer. That notice shall contain an opinion of the member of
the State Bar of California that the exemption provided by this
subdivision is available for the offer and sale of the securities. The
failure to file the notice as required by this subdivision and the
rules of the commissioner shall not affect the availability of this
exemption. An issuer who fails to file the notice within the time
specified by this subdivision shall, within 15 business days after
discovery of the failure to file the notice or after demand by the
commissioner, whichever occurs first, file the notice and pay to
the commissioner a fee equal to the fee payable had the transaction
been qualified under Section 25110. The notice, except when filed
on behalf of a California corporation, shall be accompanied by an
irrevocable consent, in the form that the commissioner by rule
prescribes, appointing the commissioner or his or her successor in
office to be the issuer’s attorney to receive service of any lawful
process in any noncriminal suit, action, or proceeding against it
or its successor that arises under this law or any rule or order
hereunder after the consent has been filed, with the same force and
validity as if served personally on the issuer. An issuer on whose
behalf a consent has been filed in connection with a previous
qualification or exemption from qualification under this law (or
application for a permit under any prior law if the application or
notice under this law states that the consent is still effective) need
not file another. Service may be made by leaving a copy of the
process in the office of the commissioner, but it is not effective
unless (A) the plaintiff, who may be the commissioner in a suit,
action, or proceeding instituted by him or her, forthwith sends
notice of the service and a copy of the process by registered or
certified mail to the defendant or respondent at its last address on
file with the commissioner, and (B) the plaintiff’s affidavit of
compliance with this section is filed in the case on or before the
return day of the process, if any, or within the further time as the
court allows.

(5) Each purchaser represents that the purchaser is purchasing
for the purchaser’s own account, or a trust account if the purchaser
is a trustee, and not with a view to or for sale in connection with
any distribution of the stock.

For the purposes of this subdivision, all securities held by
spouses, whether or not jointly, shall be considered to be owned
by one person, and all securities held by a corporation that has
issued stock pursuant to this exemption shall be considered to be
held by the shareholders to whom it has issued the stock.

All stock issued by a corporation pursuant to this subdivision as
it existed prior to the effective date of the amendments to this
section made during the 1996 portion of the 1995-96 Regular
Session that required the issuer to have stamped or printed
prominently on the face of the stock certificate a legend in a form
prescribed by rule of the commissioner restricting transfer of the
stock in a manner provided for by that rule shall not be subject to
the transfer restriction legend requirement and, by operation of
law, the corporation is authorized to remove that transfer restriction
legend from the certificates of those shares of stock issued by the
corporation pursuant to this subdivision as it existed prior to the
effective date of the amendments to this section made during the
1996 portion of the 1995-96 Regular Session.

(i) Any offer or sale (1) to a bank, savings and loan association,
trust company, insurance company, investment company registered
under the Investment Company Act of 1940, pension or
profit-sharing trust (other than a pension or profit-sharing trust of
the issuer, a self-employed individual retirement plan, or individual
retirement account), or other institutional investor or governmental
agency or instrumentality that the commissioner may designate
by rule, whether the purchaser is acting for itself or as trustee, or
(2) to any corporation with outstanding securities registered under
Section 12 of the Securities Exchange Act of 1934 or any wholly
owned subsidiary of the corporation that after the offer and sale
will own directly or indirectly 100 percent of the outstanding
capital stock of the issuer, provided the purchaser represents that
it is purchasing for its own account (or for the trust account) for
investment and not with a view to or for sale in connection with
any distribution of the security.

(j) Any offer or sale of any certificate of interest or participation
in an oil or gas title or lease (including subsurface gas storage and
payments out of production) if either of the following apply:

(1) All of the purchasers meet one of the following requirements:

(A) Are and have been during the preceding two years engaged
primarily in the business of drilling for, producing, or refining oil
or gas (or whose corporate predecessor, in the case of a corporation,
has been so engaged).

(B) Are persons described in paragraph (1) of subdivision (i).

(C) Have been found by the commissioner upon written
application to be substantially engaged in the business of drilling
for, producing, or refining oil or gas so as not to require the
protection provided by this law (which finding shall be effective
until rescinded).

(2) The security is concurrently hypothecated to a bank in the
ordinary course of business to secure a loan made by the bank,
provided that each purchaser represents that it is purchasing for
its own account for investment and not with a view to or for sale
in connection with any distribution of the security.

(k) Any offer or sale of any security under, or pursuant to, a
plan of reorganization under Chapter 11 of the federal bankruptcy
law that has been confirmed or is subject to confirmation by the
decree or order of a court of competent jurisdiction.

(l) Any offer or sale of an option, warrant, put, call, or straddle,
and any guarantee of any of these securities, by a person who is
not the issuer of the security subject to the right, if the transaction,
had it involved an offer or sale of the security subject to the right
by the person, would not have violated Section 25110 or 25130.

(m) Any offer or sale of a stock to a pension, profit-sharing,
stock bonus, or employee stock ownership plan, provided that (1)
the plan meets the requirements for qualification under Section
401 of the Internal Revenue Code, and (2) the employees are not
required or permitted individually to make any contributions to
the plan. The exemption provided by this subdivision shall not be
affected by whether the stock is contributed to the plan, purchased
from the issuer with contributions by the issuer or an affiliate of
the issuer, or purchased from the issuer with funds borrowed from
the issuer, an affiliate of the issuer, or any other lender.

(n) Any offer or sale of any security in a transaction, other than
an offer or sale of a security in a rollup transaction, that meets all
of the following criteria:

(1) The issuer is (A) a California corporation or foreign
corporation that, at the time of the filing of the notice required
under this subdivision, is subject to Section 2115, or (B) any other
form of business entity, including without limitation a partnership
or trust organized under the laws of this state. The exemption
provided by this subdivision is not available to a “blind pool”
issuer, as that term is defined by the commissioner, or to an
investment company subject to the Investment Company Act of
1940.

(2) Sales of securities are made only to qualified purchasers or
other persons the issuer reasonably believes, after reasonable
inquiry, to be qualified purchasers. A corporation, partnership, or
other organization specifically formed for the purpose of acquiring
the securities offered by the issuer in reliance upon this exemption
may be a qualified purchaser if each of the equity owners of the
corporation, partnership, or other organization is a qualified
purchaser. Qualified purchasers include the following:

(A) A person designated in Section 260.102.13 of Title 10 of
the California Code of Regulations.

(B) A person designated in subdivision (i) or any rule of the
commissioner adopted thereunder.

(C) A pension or profit-sharing trust of the issuer, a
self-employed individual retirement plan, or an individual
retirement account, if the investment decisions made on behalf of
the trust, plan, or account are made solely by persons who are
qualified purchasers.

(D) An organization described in Section 501(c)(3) of the
Internal Revenue Code, corporation, Massachusetts or similar
business trust, or partnership, each with total assets in excess of
five million dollars ($5,000,000) according to its most recent
audited financial statements.

(E) With respect to the offer and sale of one class of voting
common stock of an issuer or of preferred stock of an issuer
entitling the holder thereof to at least the same voting rights as the
issuer’s one class of voting common stock, provided that the issuer
has only one-class voting common stock outstanding upon
consummation of the offer and sale, a natural person who, either
individually or jointly with the person’s spouse, (i) has a minimum
net worth of two hundred fifty thousand dollars ($250,000) and
had, during the immediately preceding tax year, gross income in
excess of one hundred thousand dollars ($100,000) and reasonably
expects gross income in excess of one hundred thousand dollars
($100,000) during the current tax year or (ii) has a minimum net
worth of five hundred thousand dollars ($500,000). “Net worth”
shall be determined exclusive of home, home furnishings, and
automobiles. Other assets included in the computation of net worth
may be valued at fair market value.

Each natural person specified above, by reason of his or her
business or financial experience, or the business or financial
experience of his or her professional adviser, who is unaffiliated
with and who is not compensated, directly or indirectly, by the
issuer or any affiliate or selling agent of the issuer, can be
reasonably assumed to have the capacity to protect his or her
interests in connection with the transaction. The amount of the
investment of each natural person shall not exceed 10 percent of
the net worth, as determined by this subparagraph, of that natural
person.

(F) Any other purchaser designated as qualified by rule of the
commissioner.

(3) Each purchaser represents that the purchaser is purchasing
for the purchaser’s own account (or trust account, if the purchaser
is a trustee) and not with a view to or for sale in connection with
a distribution of the security.

(4) Each natural person purchaser, including a corporation,
partnership, or other organization specifically formed by natural
persons for the purpose of acquiring the securities offered by the
issuer, receives, at least five business days before securities are
sold to, or a commitment to purchase is accepted from, the
purchaser, a written offering disclosure statement that shall meet
the disclosure requirements of Regulation D (17 C.F.R. 230.501
et seq.), and any other information as may be prescribed by rule
of the commissioner, provided that the issuer shall not be obligated
pursuant to this paragraph to provide this disclosure statement to
a natural person qualified under Section 260.102.13 of Title 10 of
the California Code of Regulations. The offer or sale of securities
pursuant to a disclosure statement required by this paragraph that
is in violation of Section 25401, or that fails to meet the disclosure
requirements of Regulation D (17 C.F.R. 230.501 et seq.), shall
not render unavailable to the issuer the claim of an exemption from
Section 25110 afforded by this subdivision. This paragraph does
not impose, directly or indirectly, any additional disclosure
obligation with respect to any other exemption from qualification
available under any other provision of this section.

(5) (A) A general announcement of proposed offering may be
published by written document only, provided that the general
announcement of proposed offering sets forth the following
required information:

(i) The name of the issuer of the securities.

(ii) The full title of the security to be issued.

(iii) The anticipated suitability standards for prospective
purchasers.

(iv) A statement that (I) no money or other consideration is
being solicited or will be accepted, (II) an indication of interest
made by a prospective purchaser involves no obligation or
commitment of any kind, and, if the issuer is required by paragraph
(4) to deliver a disclosure statement to prospective purchasers,
(III) no sales will be made or commitment to purchase accepted
until five business days after delivery of a disclosure statement
and subscription information to the prospective purchaser in
accordance with the requirements of this subdivision.

(v) Any other information required by rule of the commissioner.

(vi) The following legend: “For more complete information
about (Name of Issuer) and (Full Title of Security), send for
additional information from (Name and Address) by sending this
coupon or calling (Telephone Number).”

(B) The general announcement of proposed offering referred
to in subparagraph (A) may also set forth the following
information:

(i) A brief description of the business of the issuer.

(ii) The geographic location of the issuer and its business.

(iii) The price of the security to be issued, or, if the price is not
known, the method of its determination or the probable price range
as specified by the issuer, and the aggregate offering price.

(C) The general announcement of proposed offering shall
contain only the information that is set forth in this paragraph.

(D) Dissemination of the general announcement of proposed
offering to persons who are not qualified purchasers, without more,
shall not disqualify the issuer from claiming the exemption under
this subdivision.

(6) No telephone solicitation shall be permitted until the issuer
has determined that the prospective purchaser to be solicited is a
qualified purchaser.

(7) The issuer files a notice of transaction under this subdivision
both (A) concurrent with the publication of a general announcement
of proposed offering or at the time of the initial offer of the
securities, whichever occurs first, accompanied by a filing fee, and
(B) within 10 business days following the close or abandonment
of the offering, but in no case more than 210 days from the date
of filing the first notice. The first notice of transaction under
subparagraph (A) shall contain an undertaking, in a form acceptable
to the commissioner, to deliver any disclosure statement required
by paragraph (4) to be delivered to prospective purchasers, and
any supplement thereto, to the commissioner within 10 days of
the commissioner’s request for the information. The exemption
from qualification afforded by this subdivision is unavailable if
an issuer fails to file the first notice required under subparagraph
(A) or to pay the filing fee. The commissioner has the authority
to assess an administrative penalty of up to one thousand dollars
($1,000) against an issuer that fails to deliver the disclosure
statement required to be delivered to the commissioner upon the
commissioner’s request within the time period set forth above.
Neither the filing of the disclosure statement nor the failure by the
commissioner to comment thereon precludes the commissioner
from taking any action deemed necessary or appropriate under this
division with respect to the offer and sale of the securities.

(o) An offer or sale of any security issued by a corporation or
limited liability company pursuant to a purchase plan or agreement,
or issued pursuant to an option plan or agreement, where the
security at the time of issuance or grant is exempt from registration
under the Securities Act of 1933, as amended, pursuant to Rule
701 adopted pursuant to that act (17 C.F.R. 230.701), the provisions
of which are hereby incorporated by reference into this section,
provided that (1) the terms of any purchase plan or agreement shall
comply with Sections 260.140.42, 260.140.45, and 260.140.46 of
Title 10 of the California Code of Regulations, (2) the terms of
any option plan or agreement shall comply with Sections
260.140.41, 260.140.45, and 260.140.46 of Title 10 of the
California Code of Regulations, and (3) the issuer files a notice of
transaction in accordance with rules adopted by the commissioner
no later than 30 days after the initial issuance of any security under
that plan, accompanied by a filing fee as prescribed by subdivision
(y) of Section 25608. The failure to file the notice of transaction
within the time specified in this subdivision shall not affect the
availability of this exemption. An issuer that fails to file the notice
shall, within 15 business days after discovery of the failure to file
the notice or after demand by the commissioner, whichever occurs
first, file the notice and pay the commissioner a fee equal to the
maximum aggregate fee payable had the transaction been qualified
under Section 25110.

Offers and sales exempt pursuant to this subdivision shall be
deemed to be part of a single, discrete offering and are not subject
to integration with any other offering or sale, whether qualified
under Chapter 2 (commencing with Section 25110), or otherwise
exempt, or not subject to qualification.

(p) An offer or sale of nonredeemable securities to accredited
investors (Section 28031) by a person licensed under the Capital
Access Company Law (Division 3 (commencing with Section
28000) of Title 4), provided that all purchasers either (1) have a
preexisting personal or business relationship with the offeror or
any of its partners, officers, directors, controlling persons, or
managers (as appointed or elected by the members), or (2) by
reason of their business or financial experience or the business or
financial experience of their professional advisers who are
unaffiliated with and who are not compensated by the issuer or
any affiliate or selling agent of the issuer, directly or indirectly,
could be reasonably assumed to have the capacity to protect their
own interests in connection with the transaction. All nonredeemable
securities shall be evidenced by certificates that shall have stamped
or printed prominently on their face a legend in a form to be
prescribed by rule or order of the commissioner restricting transfer
of the securities in the manner as the rule or order provides. The
exemption under this subdivision shall not be available for any
offering that is exempt or asserted to be exempt pursuant to Section
3(a)(11) of the Securities Act of 1933 (15 U.S.C. Sec. 77c(a)(11))
or Rule 147 (17 C.F.R. 230.147) thereunder or otherwise is
conducted by means of any form of general solicitation or general
advertising.

(q) Any offer or sale of any viatical or life settlement contract
or fractionalized or pooled interest therein in a transaction that
meets all of the following criteria:

(1) Sales of securities described in this subdivision are made
only to qualified purchasers or other persons the issuer reasonably
believes, after reasonable inquiry, to be qualified purchasers. A
corporation, partnership, or other organization specifically formed
for the purpose of acquiring the securities offered by the issuer in
reliance upon this exemption may be a qualified purchaser only if
each of the equity owners of the corporation, partnership, or other
organization is a qualified purchaser. Qualified purchasers include
the following:

(A) A person designated in Section 260.102.13 of Title 10 of
the California Code of Regulations.

(B) A person designated in subdivision (i) or any rule of the
commissioner adopted thereunder.

(C) A pension or profit-sharing trust of the issuer, a
self-employed individual retirement plan, or an individual
retirement account, if the investment decisions made on behalf of
the trust, plan, or account are made solely by persons who are
qualified purchasers.

(D) An organization described in Section 501(c)(3) of the
Internal Revenue Code, corporation, Massachusetts or similar
business trust, or partnership, each with total assets in excess of
five million dollars ($5,000,000) according to its most recent
audited financial statements.

(E) A natural person who, either individually or jointly with the
person’s spouse, (i) has a minimum net worth of one hundred fifty
thousand dollars ($150,000) and had, during the immediately
preceding tax year, gross income in excess of one hundred thousand
dollars ($100,000) and reasonably expects gross income in excess
of one hundred thousand dollars ($100,000) during the current tax
year or (ii) has a minimum net worth of two hundred fifty thousand
dollars ($250,000). “Net worth” shall be determined exclusive of
home, home furnishings, and automobiles. Other assets included
in the computation of net worth may be valued at fair market value.

Each natural person specified above, by reason of his or her
business or financial experience, or the business or financial
experience of his or her professional adviser, who is unaffiliated
with and who is not compensated, directly or indirectly, by the
issuer or any affiliate or selling agent of the issuer, can be
reasonably assumed to have the capacity to protect his or her
interests in connection with the transaction.

The amount of the investment of each natural person shall not
exceed 10 percent of the net worth, as determined by this
subdivision, of that natural person.

(F) Any other purchaser designated as qualified by rule of the
commissioner.

(2) Each purchaser represents that the purchaser is purchasing
for the purchaser’s own account (or trust account, if the purchaser
is a trustee) and not with a view to or for sale in connection with
a distribution of the security.

(3) Each natural person purchaser, including a corporation,
partnership, or other organization specifically formed by natural
persons for the purpose of acquiring the securities offered by the
issuer, receives, at least five business days before securities
described in this subdivision are sold to, or a commitment to
purchase is accepted from, the purchaser, the following information
in writing:

(A) The name, principal business and mailing address, and
telephone number of the issuer.

(B) The suitability standards for prospective purchasers as set
forth in paragraph (1) of this subdivision.

(C) A description of the issuer’s type of business organization
and the state in which the issuer is organized or incorporated.

(D) A brief description of the business of the issuer.

(E) If the issuer retains ownership or becomes the beneficiary
of the insurance policy, an audit report of an independent certified
public accountant together with a balance sheet and related
statements of income, retained earnings, and cashflows that reflect
the issuer’s financial position, the results of the issuer’s operations,
and the issuer’s cashflows as of a date within 15 months before
the date of the initial issuance of the securities described in this
subdivision. The financial statements listed in this subparagraph
shall be prepared in conformity with generally accepted accounting
principles. If the date of the audit report is more than 120 days
before the date of the initial issuance of the securities described
in this subdivision, the issuer shall provide unaudited interim
financial statements.

(F) The names of all directors, officers, partners, members, or
trustees of the issuer.

(G) A description of any order, judgment, or decree that is final
as to the issuing entity of any state, federal, or foreign country
governmental agency or administrator, or of any state, federal, or
foreign country court of competent jurisdiction (i) revoking,
suspending, denying, or censuring for cause any license, permit,
or other authority of the issuer or of any director, officer, partner,
member, trustee, or person owning or controlling, directly or
indirectly, 10 percent or more of the outstanding interest or equity
securities of the issuer, to engage in the securities, commodities,
franchise, insurance, real estate, or lending business or in the offer
or sale of securities, commodities, franchises, insurance, real estate,
or loans, (ii) permanently restraining, enjoining, barring,
suspending, or censuring any such person from engaging in or
continuing any conduct, practice, or employment in connection
with the offer or sale of securities, commodities, franchises,
insurance, real estate, or loans, (iii) convicting any such person
of, or pleading nolo contendere by any such person to, any felony
or misdemeanor involving a security, commodity, franchise,
insurance, real estate, or loan, or any aspect of the securities,
commodities, franchise, insurance, real estate, or lending business,
or involving dishonesty, fraud, deceit, embezzlement, fraudulent
conversion, or misappropriation of property, or (iv) holding any
such person liable in a civil action involving breach of a fiduciary
duty, fraud, deceit, embezzlement, fraudulent conversion, or
misappropriation of property. This subparagraph does not apply
to any order, judgment, or decree that has been vacated, overturned,
or is more than 10 years old.

(H) Notice of the purchaser’s right to rescind or cancel the
investment and receive a refund pursuant to Section 25508.5.

(I) The name, address, and telephone number of the issuing
insurance company, and the name, address, and telephone number
of the state or foreign country regulator of the insurance company.

(J) The total face value of the insurance policy and the
percentage of the insurance policy the purchaser will own.

(K) The insurance policy number, issue date, and type.

(L) If a group insurance policy, the name, address, and telephone
number of the group, and, if applicable, the material terms and
conditions of converting the policy to an individual policy,
including the amount of increased premiums.

(M) If a term insurance policy, the term and the name, address,
and telephone number of the person who will be responsible for
renewing the policy if necessary.

(N) That the insurance policy is beyond the state statute for
contestability and the reason therefor.

(O) The insurance policy premiums and terms of premium
payments.

(P) The amount of the purchaser’s moneys that will be set aside
to pay premiums.

(Q) The name, address, and telephone number of the person
who will be the insurance policy owner and the person who will
be responsible for paying premiums.

(R) The date on which the purchaser will be required to pay
premiums and the amount of the premium, if known.

(S) A statement to the effect that any projected rate of return to
the purchaser from the purchase of a viatical or life settlement
contract or a fractionalized or pooled interest therein is based on
an estimated life expectancy for the person insured under the life
insurance policy; that the return on the purchase may vary
substantially from the expected rate of return based upon the actual
life expectancy of the insured that may be less than, equal to, or
may greatly exceed the estimated life expectancy; and that the rate
of return would be higher if the actual life expectancy were less
than, and lower if the actual life expectancy were greater than the
estimated life expectancy of the insured at the time the viatical or
life settlement contract was closed.

(T) A statement that the purchaser should consult with his or
her tax adviser regarding the tax consequences of the purchase of
the viatical or life settlement contract or fractionalized or pooled
interest therein and, if the purchaser is using retirement funds or
accounts for that purchase, whether or not any adverse tax
consequences might result from the use of those funds for the
purchase of that investment.

(U) Any other information as may be prescribed by rule of the
commissioner.

SEC. 22.  

Section 25206 of the Corporations Code is amended
to read:

25206.  

A broker licensed by the Real Estate Commissioner is
exempt from the provisions of Section 25210 when engaged in
transactions in any interest in any general or limited partnership,
joint venture, unincorporated association, or similar organization
(but not a corporation) owned beneficially by no more than 100
persons and formed for the sole purpose of, and engaged solely
in, investment in or gain from an interest in real property, including,
but not limited to, a sale, exchange, trade, or development. An
interest held by spouses shall be considered held by one person
for the purposes of this section.

SEC. 23.  

Section 21100 of the Education Code is amended to
read:

21100.  

Any person desiring in his or her lifetime to promote
the public welfare by founding, endowing, and maintaining within
this state a university, college, school, seminary of learning,
mechanical institute, museum, botanic garden, public park, or
gallery of art, or any or all thereof, may, for such purposes, by
grant in writing convey to a trustee, or any number of trustees,
named in the grant, and to their successors, any property, real or
personal, belonging to him or her and situated within this state. If
he or she is married and the property is community property, then
both spouses shall join in the grant.

SEC. 24.  

Section 24803 of the Education Code is amended to
read:

24803.  

(a) If any benefit is payable by a district retirement
system to the estate of a deceased person, whether because the
estate is the beneficiary of the person or because no beneficiary
was designated or because an allowance payable to the person had
accrued and remained unpaid at the date of the death, and the estate
would not be administered if no amount were due from the system,
then the benefit shall be paid directly without procuring letters of
administration to the surviving next of kin of the deceased, or the
guardians of the survivors’ estates, share and share alike. The
payment shall be made in the same order in which the following
groups are listed:

(1) Spouse.

(2) Children and issue of deceased children by right of
representation.

(3) Father and mother.

(4) Brothers and sisters.

(5) Nieces and nephews.

(b) Payment may also be made to persons in the groups listed
in subdivision (a) to the extent those persons are the only
beneficiaries under the last will and testament of a deceased former
member of a district retirement system, without the probate of the
will.

SEC. 25.  

Section 68062 of the Education Code is amended to
read:

68062.  

In determining the place of residence the following
rules are to be observed:

(a) There can only be one residence.

(b) A residence is the place where one remains when not called
elsewhere for labor or other special or temporary purpose, and to
which he or she returns in seasons of repose.

(c) A residence cannot be lost until another is gained.

(d) The residence can be changed only by the union of act and
intent.

(e) A man or woman may establish his or her residence. A
person’s residence shall not be derivative from that of his or her
spouse.

(f) The residence of the parent with whom an unmarried minor
child maintains his or her place of abode is the residence of the
unmarried minor child. When the minor lives with neither parent
his or her residence is that of the parent with whom he or she
maintained his or her last place of abode, provided the minor may
establish his or her residence when both parents are deceased and
a legal guardian has not been appointed.

(g) The residence of an unmarried minor who has a parent living
cannot be changed by his or her own act, by the appointment of a
legal guardian, or by relinquishment of a parent’s right of control.

(h) An alien, including an unmarried minor alien, may establish
his or her residence, unless precluded by the Immigration and
Nationality Act (8 U.S.C. 1101, et seq.) from establishing domicile
in the United States.

(i) The residence of an unmarried minor alien shall be derived
from his or her parents pursuant to the provisions of subdivisions
(f) and (g).

SEC. 26.  

Section 917 of the Evidence Code is amended to read:

917.  

(a) If a privilege is claimed on the ground that the matter
sought to be disclosed is a communication made in confidence in
the course of the lawyer-client, lawyer referral service-client,
physician-patient, psychotherapist-patient, clergy-penitent, marital,
sexual assault counselor-victim, domestic violence
counselor-victim, or human trafficking caseworker-victim
relationship, the communication is presumed to have been made
in confidence and the opponent of the claim of privilege has the
burden of proof to establish that the communication was not
confidential.

(b) A communication between persons in a relationship listed
in subdivision (a) does not lose its privileged character for the sole
reason that it is communicated by electronic means or because
persons involved in the delivery, facilitation, or storage of
electronic communication may have access to the content of the
communication.

(c) For purposes of this section, “electronic” has the same
meaning provided in Section 1633.2 of the Civil Code.

SEC. 27.  

Section 980 of the Evidence Code is amended to read:

980.  

Subject to Section 912 and except as otherwise provided
in this article, a spouse (or his or her guardian or conservator when
he or she has a guardian or conservator), whether or not a party,
has a privilege during the marital relationship and afterwards to
refuse to disclose, and to prevent another from disclosing, a
communication if he or she claims the privilege and the
communication was made in confidence between him or her and
the other spouse while they were spouses.

SEC. 28.  

Section 14860 of the Financial Code is amended to
read:

14860.  

Except as provided in this section and Part 2
(commencing with Section 5100) of Division 5 of the Probate
Code, no credit union shall exercise trust powers except upon
qualifying as a trust company pursuant to Division 1 (commencing
with Section 99).

(a) Notwithstanding any other provisions of law relating to trusts
and trust authority, subject to the regulations of the commissioner,
a credit union may act as a trustee or custodian, and may receive
reasonable compensation for so acting, under any written trust
instrument or custodial agreement created or organized in the
United States which is a part of a pension, education, or medical
plan for its members or groups or organizations of its members,
which qualifies or has qualified for specific tax treatment under
Section 220, 223, 401, 408, 408A, 457, or 530 of the Internal
Revenue Code, Title 26 of the United States Code, or any deferred
compensation plan for the benefit of the credit union’s employees,
provided the funds received pursuant to these plans are invested
as provided in Section 16040 of the Probate Code. All funds held
by a credit union as trustee or in a custodial capacity shall be
maintained in accordance with applicable laws and rules and
regulations as may be promulgated by the Secretary of Labor, the
Secretary of the Treasury, or any other authority exercising
jurisdiction over the trust or custodial accounts. The credit union
shall maintain individual records for each participant or beneficiary
that show in detail all transactions relating to the funds of each
participant or beneficiary.

The trust instrument or agreement shall provide for the
appointment of a successor trustee or custodian by a person,
committee, corporation, or organization other than the credit union
or any person acting in his or her capacity as a director, employee,
or agent of the credit union, upon notice from the credit union or
the commissioner that the credit union is unwilling or unable to
continue to act as trustee or custodian.

(b) Shares may be issued in a revocable or irrevocable trust
subject to the following:

(1) When shares are issued in a revocable trust, the settlor shall
be a member of the credit union issuing the shares in his or her
own right. If the trust has joint settlers, who are spouses, then only
one settlor need be a member of the credit union.

(2) When shares are issued in an irrevocable trust, the settlor or
the beneficiary shall be a member of this credit union in his or her
own right. For purposes of this section, shares issued pursuant to
a pension plan authorized by this section shall be treated as an
irrevocable trust unless otherwise indicated in rules and regulations
issued by the commissioner.

(3) This subdivision does not apply to trust accounts established
prior to the effective date of this subdivision.

SEC. 29.  

Section 18220 of the Financial Code is amended to
read:

18220.  

An industrial loan company shall not induce any spouses
jointly or severally, to become obligated, directly or contingently
or both, under more than one contract of loan at the same time,
with the result of obtaining a higher rate of charge than would
otherwise be permitted by this division.

SEC. 30.  

Section 18523 of the Financial Code is amended to
read:

18523.  

The following described thrift obligations will be
guaranteed by Guaranty Corporation in the amounts hereinafter
set forth below:

(a) Single ownership investment certificates. Funds owned by
an individual and invested in the manner set forth below shall be
added together and guaranteed up to fifty thousand dollars
($50,000) in the aggregate.

(1) Individual investment certificates (or investment certificates
of the marital community of which the individual is a member)
and invested in one or more investment certificates in his or her
own name shall be guaranteed up to fifty thousand dollars
($50,000) in the aggregate.

(2) Funds owned by a principal and invested in one or more
investment certificates in the name or names of agents or nominees
shall be added to any individual investment certificates of the
principal and guaranteed up to fifty thousand dollars ($50,000) in
the aggregate.

(3)  Investment certificates held by guardians, custodians, or
conservators for the benefit of their wards or for the benefit of a
minor under a Uniform Gifts to Minors Act and invested in one
or more investment certificates in the name of the guardian,
custodian, or conservator shall be added to any individual
investment certificates of the ward or minor and guaranteed up to
fifty thousand dollars ($50,000) in the aggregate.

(b) Testamentary investment certificates.

(1) Funds owned by an individual and invested in a revocable
trust investment certificate, tentative trust investment certificate,
payable-on-death investment certificate, or similar investment
certificate evidencing an intention that on his or her death the funds
shall belong to his or her spouse, child or grandchild, shall be
guaranteed up to fifty thousand dollars ($50,000) in the aggregate,
as to each such named beneficiary, separately from any other
investment certificates of the owner.

(2) If the named beneficiary of such an investment certificate
is other than the owner’s spouse, child or grandchild, the funds in
the investment certificate shall be added to any individual
investment certificates of such owner and guaranteed up to fifty
thousand dollars ($50,000) in the aggregate, separately from the
individual investment certificates of the beneficiaries of the estate
or of the executor or administrator.

(c)  Investment certificates held by executors or administrators.
Funds of a decedent held in the name of the decedent or in the
name of the executor or administrator of his or her estate and
invested in one or more investment certificates shall be guaranteed
up to fifty thousand dollars ($50,000) in the aggregate, separately
from the individual investment certificates of the beneficiaries of
the estate or of the executor or administrator.

(d) Corporation or partnership investment certificates.
Investment certificates of a corporation or partnership engaged in
any independent activity shall be guaranteed up to fifty thousand
dollars ($50,000) in the aggregate. An investment certificate of a
corporation or partnership not engaged in an independent activity
shall be deemed to be owned by the person or persons owning
such corporation or comprising such partnership and, for guarantee
purposes, the interest of each person in the investment certificate
shall be added to any other investment certificates individually
owned by such person and guaranteed up to fifty thousand dollars
($50,000) in the aggregate. The term “independent activity” means
any activity other than one directed solely at increasing guarantee
coverage under this chapter.

(e) Unincorporated associations. Investment certificates of an
unincorporated association engaged in any independent activity
shall be guaranteed up to fifty thousand dollars ($50,000) in the
aggregate. An investment certificate of an unincorporated
association not engaged in an independent activity shall be deemed
to be owned by the persons comprising such association and, for
guarantee purposes, the interest of each owner in the investment
certificate shall be added to any other investment certificates
individually owned by such person and guaranteed up to fifty
thousand dollars ($50,000) in the aggregate.

(f) Joint investment certificates.

(1)  Investment certificates owned jointly, whether as joint
tenants with right of survivorship, as tenants by the entireties, as
tenants in common, or by spouses as community property, shall
be guaranteed separately from investment certificates individually
owned by the co-owners.

(2) A joint investment certificate shall be deemed to exist, for
purposes of guarantee of investment certificates, only if each
co-owner has personally executed an investment certificate
signature card and possesses redemption rights.

(3) An investment certificate owned jointly which does not
qualify as a joint investment certificate for purposes of guarantee
of investment certificates shall be treated as owned by the named
persons as individuals and the actual ownership interest of each
such person in such investment certificate shall be added to any
other investment certificates individually owned by such person
and guaranteed up to fifty thousand dollars ($50,000) in the
aggregate.

(4) All joint investment certificates owned by the same
combination of individuals shall first be added together and
guaranteed up to fifty thousand dollars ($50,000) in the aggregate.

(5) The interest of each co-owner in all joint investment
certificates owned by different combinations of individuals shall
then be added together and guaranteed up to fifty thousand dollars
($50,000) in the aggregate.

(g) Trust investment certificates. All trust interests for the same
beneficiary invested in investment certificates established pursuant
to valid trust arrangements created by the same settlor (grantor)
shall be added together and guaranteed up to fifty thousand dollars
($50,000) in the aggregate, separately from other investment
certificates of the trustee of such trust funds or the settlor or
beneficiary of such trust arrangements.

(h) Thrift obligations withdrawn by checks that have not cleared
a member’s bank account at the time the commissioner has taken
possession of the property and business of a member. The owner
of the funds represented by such a check shall be recognized for
all purposes of a claim for guaranteed thrift obligations to the same
extent as if his or her name and interest were disclosed on the
records of the member.

SEC. 31.  

Section 22327 of the Financial Code is amended to
read:

22327.  

No licensee shall knowingly induce any borrower to
split up or divide any loan with any other licensee. No licensee
shall induce or permit any borrower to be or to become obligated
directly or indirectly, or both, under more than one contract of loan
at the same time with the same licensee for the purpose or with
the result of obtaining a higher rate of charge than would otherwise
be permitted by this article, except as otherwise required by the
federal Equal Credit Opportunity Act (15 U.S.C. Sec. 1691 et seq.;
Public Law 93-495) and Regulation B promulgated by the Board
of Governors of the Federal Reserve System (12 C.F.R. 202 et
seq.). For the purpose of this section, “borrower” includes any
spouses, whether jointly or severally obligated.

SEC. 32.  

Section 8552.3 of the Fish and Game Code is
amended to read:

8552.3.  

The commission may, in consultation with
representatives of the commercial herring roe fishery, and after
holding at least one public hearing, adopt regulations intended to
facilitate the transfer of herring permits, including, but not limited
to, regulations that would do the following:

(a) Allow an individual to own a single permit for each of the
different herring gillnet platoons in San Francisco Bay.

(b) Eliminate the point system for qualifying for a herring
permit.

(c) Allow a herring permit to be passed from a parent to child,
or between spouses.

SEC. 33.  

Section 9359.9 of the Government Code is amended
to read:

9359.9.  

If a beneficiary is not designated, or if the estate is the
beneficiary and the estate would not be probated if no amount were
due from this system, all of the amount due by reason of the death
of a member or retired member, including retirement allowances
accrued but not received prior to death, shall be paid directly
without probate to the surviving next of kin of the deceased, or
the guardians of such survivors’ estates, share and share alike.

Such payment shall be made in the same order in which the
following groups are listed:

1. Spouse,

2. Children,

3. Father and mother,

4. Grandchildren,

5. Brothers and sisters,

6. Nieces and nephews.

SEC. 34.  

Section 9374 of the Government Code is amended
to read:

9374.  

Upon the death of a member before retirement (a) the
surviving spouse of the member, who has the care of unmarried
children, including stepchildren, of the member who are under 18
years of age, or are incapacitated because of disability which began
before and has continued without interruption after attainment of
that age, or if there is no such spouse, then (b) the guardian of
surviving unmarried children, including stepchildren, of the
member who are under 18 years of age or so incapacitated, if any,
or (c) the surviving spouse of the member, who does not qualify
under (a), if any, or if no such children under (b) or such spouse
under (c), then (d) each surviving parent of the member, shall be
paid the following applicable survivor allowance, under the
conditions stated and from contributions of the state:

(1) A widow or a widower who was married to the member
prior to the occurrence of the injury or onset of the illness that
resulted in death, and has the care of unmarried children, including
stepchildren, of the deceased member under 18 years of age or so
incapacitated, shall be paid three hundred sixty dollars ($360) if
there is one such child, or four hundred thirty dollars ($430) per
month if there are two or more such children. If there also are such
children who are not in the care of the surviving spouse, the portion
of the allowance payable under this paragraph, assuming that these
children were in the care of the surviving spouse, which is in excess
of one hundred eighty dollars ($180) per month, shall be divided
equally among all of those children and payments made to the
spouse and other children, as the case may be.

(2) If there is no such surviving spouse, or if such surviving
spouse dies or remarries, and if there are unmarried children,
including stepchildren, of the deceased member under 18 years of
age, or if there are such children not in the care of such spouse,
such children shall be paid an allowance as follows:

(a) If there is only one such child, such child shall be paid one
hundred eighty dollars ($180) per month;

(b) If there are two such children, such children shall be paid
three hundred sixty dollars ($360) per month divided equally
between them; and

(c) If there are three or more such children, such children shall
be paid four hundred thirty dollars ($430) per month divided
equally among them.

(3) A surviving spouse who has attained or attains the age of
62 years, and, regardless of the gender of the surviving spouse,
who was married to such member prior to the occurrence of the
injury or onset of the illness that resulted in death, and has not
remarried subsequent to the member’s death, shall be paid one
hundred eighty dollars ($180) per month. No allowance shall be
paid under this subdivision, while the surviving spouse is receiving
an allowance under subdivision (1) of this section, or while an
allowance is being paid under subdivision (2)(c) of this section.
The allowance paid under this subdivision shall be seventy dollars
($70) per month while an allowance is being paid under subdivision
(2)(b) of this section.

(4) If there is no surviving spouse, or surviving children who
qualify for a survivor allowance, or if such surviving spouse dies
or remarries, or if such children reach age 18 or die or marry prior
thereto, each of the member’s dependent mother and father who
has attained or attains the age of 62 years, and who received at
least one-half of his or her support from the member at the time
of the member’s death, shall be paid one hundred eighty dollars
($180) per month.

“Stepchildren,” for purposes of this section, shall include only
stepchildren of the member living with him or her in a regular
parent-child relationship at the time of his or her death.

SEC. 35.  

Section 21571 of the Government Code is amended
to read:

21571.  

(a) If the death benefit provided by Section 21532 is
payable on account of a member’s death that occurs under
circumstances other than those described in subparagraph (F) of
paragraph 1 of subdivision (a) of Section 21530, or if an allowance
under Section 21546 is payable, the payment pursuant to
subdivision (b) shall be made, in the following order of priority:

(1) The surviving spouse of the member, who has the care of
unmarried children, including stepchildren, of the member who
are under 22 years of age, or are incapacitated because of disability
that began before and has continued without interruption after
attainment of that age.

(2) The guardian or conservator of surviving unmarried children,
including stepchildren, of the member who are under 22 years of
age or are so incapacitated.

(3) The surviving spouse of the member, who does not qualify
under paragraph (1).

(4) Each surviving parent of the member.

(b) Regardless of the benefit provided by Section 21532 and of
the beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the state, shall be paid:

(1) A surviving spouse who was either continuously married to
the member for at least one year prior to death, or was married to
the member prior to the occurrence of the injury or onset of the
illness that resulted in death, and has the care of unmarried
children, including stepchildren, of the deceased member who are
under 22 years of age or are so incapacitated, shall be paid three
hundred sixty dollars ($360) if there is one child or four hundred
thirty dollars ($430) per month if there are two or more children.
If there also are children who are not in the care of the surviving
spouse, the portion of the allowance payable under this paragraph,
assuming that these children were in the care of the surviving
spouse, which is in excess of one hundred eighty dollars ($180)
per month, shall be divided equally among all those children and
payments made to the spouse and other children, as the case may
be.

(2) If there is no surviving spouse, or if the surviving spouse
dies, and if there are unmarried children, including stepchildren,
of the deceased member who are under 22 years of age or are so
incapacitated, or if there are children not in the care of the spouse,
the children shall be paid an allowance as follows:

(A) If there is only one child, the child shall be paid one hundred
eighty dollars ($180) per month.

(B) If there are two children, the children shall be paid three
hundred sixty dollars ($360) per month divided equally between
them.

(C) If there are three or more children, the children shall be paid
four hundred thirty dollars ($430) per month divided equally among
them.

(3) A surviving spouse who has attained or attains the age of
62 years and, with respect to that surviving spouse, who was either
continuously married to the member for at least one year prior to
death, or who was married to the member prior to the occurrence
of the injury or onset of the illness which resulted in death, shall
be paid one hundred eighty dollars ($180) per month. No allowance
shall be paid under this paragraph, while the surviving spouse is
receiving an allowance under paragraph (1), or while an allowance
is being paid under subparagraph (C) of paragraph (2). The
allowance paid under this paragraph shall be seventy dollars ($70)
per month while an allowance is being paid under subparagraph
(B) of paragraph (2).

(4) If there is no surviving spouse or surviving child who
qualifies for a 1959 survivor allowance, or if the surviving spouse
dies and there is no surviving child, or if the surviving spouse dies
and the children die or marry or, if not incapacitated, reach age
22, each of the member’s dependent parents who has attained or
attains the age of 62, and who received at least one-half of his or
her support from the member at the time of the member’s death,
shall be paid one hundred eighty dollars ($180) per month.

(c) “Stepchildren,” for purposes of this section, shall include
only stepchildren of the member living with him or her in a regular
parent-child relationship at the time of his or her death.

(d) The amendments to this section by Chapter 1617 of the
Statutes of 1971 shall apply only to 1959 survivor allowances
payable April 1, 1972, and thereafter.

(e) This section does not apply to any member in the employ
of an employer not subject to this section on January 1, 1994.

(f) On and after the date determined by the board, all assets and
liabilities of all contracting agencies subject to this section, and
their employees, on account of benefits provided under this article
shall be pooled into a single account, and a single employer rate
shall be established to provide benefits under this section on
account of members employed by a contracting agency that is
subject to this section.

(g) The rate of contribution of an employer subject to this section
shall be figured using the term insurance valuation method. If a
contracting agency that is subject to this section is projected to
have a surplus in its 1959 survivor benefit account as of the date
the assets and liabilities are first pooled, the surplus shall be applied
to reduce its rate of contribution. If a contracting agency that is
subject to this section is projected to have a deficit in its 1959
survivor benefit account as of the date the assets and liabilities are
first pooled, its rate of contribution shall be increased until the
projected deficit is paid.

SEC. 36.  

Section 21572 of the Government Code is amended
to read:

21572.  

(a) In lieu of benefits provided in Section 21571, if the
death benefit provided by Section 21532 is payable on account of
a state member’s death that occurs under circumstances other than
those described in subparagraph (F) of paragraph (1) of subdivision
(a) of Section 21530, or if an allowance under Section 21546 is
payable, the payment pursuant to subdivision (b) shall be made in
the following order of priority:

(1) The surviving spouse of the member who has the care of
unmarried children, including stepchildren, of the member who
are under 22 years of age or are incapacitated because of a
disability that began before and has continued without interruption
after attainment of that age.

(2) The guardian of surviving unmarried children, including
stepchildren, of the member who are under 22 years of age or are
so incapacitated.

(3) The surviving spouse of the member who does not qualify
under paragraph (1).

(4) Each surviving parent of the member.

(b) Regardless of the benefit provided by Section 21532 and of
the beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the state, shall be paid:

(1) A surviving spouse who was either continuously married to
the member for at least one year prior to death, or was married to
the member prior to the occurrence of the injury or onset of the
illness that resulted in death, and has the care of unmarried
children, including stepchildren, of the deceased member who are
under 22 years of age or are so incapacitated, shall be paid four
hundred fifty dollars ($450) per month if there is one child or five
hundred thirty-eight dollars ($538) per month if there are two or
more children. If there also are children who are not in the care of
the surviving spouse, the portion of the allowance payable under
this paragraph, assuming that these children were in the care of
the surviving spouse, that is in excess of two hundred twenty-five
dollars ($225) per month, shall be divided equally among all those
children and payments made to the spouse and other children, as
the case may be.

(2) If there is no surviving spouse, or if the surviving spouse
dies, and if there are unmarried children, including stepchildren,
of the deceased member who are under 22 years of age or are so
incapacitated, or if there are children not in the care of the spouse,
the children shall be paid an allowance as follows:

(A) If there is only one child, the child shall be paid two hundred
twenty-five dollars ($225) per month.

(B) If there are two children, the children shall be paid four
hundred fifty dollars ($450) per month divided equally between
them.

(C) If there are three or more children, the children shall be paid
five hundred thirty-eight dollars ($538) per month divided equally
among them.

(3) A surviving spouse who has attained or attains the age of
62 years and, with respect to that surviving spouse, who was either
continuously married to the member for at least one year prior to
death, or was married to the member prior to the occurrence of the
injury or onset of the illness that resulted in death, shall be paid
two hundred twenty-five dollars ($225) per month. No allowance
shall be paid under this paragraph while the surviving spouse is
receiving an allowance under paragraph (1) or while an allowance
is being paid under subparagraph (C) of paragraph (2). The
allowance paid under this paragraph shall be eighty-eight dollars
($88) per month while an allowance is being paid under
subparagraph (B) of paragraph (2).

(4) If there is no surviving spouse or surviving child who
qualifies for a 1959 survivor allowance, or if the surviving spouse
dies and there is no surviving child, or if the surviving spouse dies
and the children die or marry or, if not incapacitated, reach 22
years of age, each of the member’s dependent parents who has
attained or attains the age of 62 years, and who received at least
one-half of his or her support from the member at the time of the
member’s death, shall be paid two hundred twenty-five dollars
($225) per month.

(c) “Stepchildren,” for purposes of this section, shall include
only stepchildren of the member living with him or her in a regular
parent-child relationship at the time of his or her death.

(d) This section shall apply to beneficiaries receiving 1959
survivor allowances on July 1, 1975, as well as to beneficiaries
with respect to the death of a state member occurring on or after
July 1, 1975.

(e) This section shall apply, with respect to benefits payable on
and after July 1, 1981, to all members employed by a school
employer, and school safety members employed with a school
district or community college district as defined in subdivision (i)
of Section 20057, except that it shall not apply, without contract
amendment, with respect to safety members who became members
after July 1, 1981. All assets and liabilities of all school employers,
and their employees, on account of benefits provided under this
article shall be pooled into a single account, and a single employer
rate shall be established to provide benefits under this section on
account of all miscellaneous members employed by a school
employer and all safety members who are members on July 1,
1981.

(f) This section does not apply to any member in the employ of
an employer not subject to this section on January 1, 1994.

(g) On and after January 1, 2000, all state members covered by
this section shall be covered by the benefit provided under Section
21574.7.

(h) On and after the date determined by the board, all assets and
liabilities of all contracting agencies subject to this section, and
their employees, on account of benefits provided under this article
shall be pooled into a single account, and a single employer rate
shall be established to provide benefits under this section on
account of members employed by a contracting agency that is
subject to this section.

(i) The rate of contribution of an employer subject to this section
shall be figured using the term insurance valuation method. If a
contracting agency that is subject to this section is projected to
have a surplus in its 1959 survivor benefit account as of the date
the assets and liabilities are first pooled, the surplus shall be applied
to reduce its rate of contribution. If a contracting agency that is
subject to this section is projected to have a deficit in its 1959
survivor benefit account as of the date the assets and liabilities are
first pooled, its rate of contribution shall be increased until the
projected deficit is paid.

SEC. 37.  

Section 21573 of the Government Code is amended
to read:

21573.  

(a) In lieu of benefits provided in Section 21571 or
Section 21572, if the death benefit provided by Section 21532 is
payable on account of a state member’s death that occurs under
circumstances other than those described in subparagraph (F) of
paragraph (1) of subdivision (a) of Section 21530, or if an
allowance under Section 21546 is payable, the payment pursuant
to subdivision (b) shall be made in the following order of priority:

(1) The surviving spouse of the member who has the care of
unmarried children, including stepchildren, of the member who
are under 22 years of age or are incapacitated because of a
disability that began before and has continued without interruption
after attainment of that age.

(2) The guardian of surviving unmarried children, including
stepchildren, of the member who are under 22 years of age or are
so incapacitated.

(3) The surviving spouse of the member who does not qualify
under paragraph (1).

(4) Each surviving parent of the member.

(b) Regardless of the benefit provided by Section 21532 and of
the beneficiary designated by the member under that section, or
regardless of the allowance provided under Section 21546, the
following applicable 1959 survivor allowance, under the conditions
stated and from contributions of the state, shall be paid:

(1) A surviving spouse who was either continuously married to
the member for at least one year prior to death, or who was married
to the member prior to the occurrence of the injury or onset of the
illness that resulted in death, and has the care of unmarried
children, including stepchildren, of the deceased member who are
under 22 years of age or are so incapacitated, shall be paid seven
hundred dollars ($700) per month if there is one child, or eight
hundred forty dollars ($840) per month if there are two or more
children. If there also are children who are not in the care of the
surviving spouse, the portion of the allowance payable under this
paragraph, assuming that these children were in the care of the
surviving spouse, that is in excess of three hundred fifty dollars
($350) per month, shall be divided equally among all those children
and payments made to the spouse and other children, as the case
may be.

(2) If there is no surviving spouse, or if the surviving spouse
dies, and if there are unmarried children, including stepchildren,
of the deceased member who are under 22 years of age or are so
incapacitated, or if there are children not in the care of the spouse,
the children shall be paid an allowance as follows:

(A) If there is only one child, the child shall be paid three
hundred fifty dollars ($350) per month.

(B) If there are two children, the children shall be paid seven
hundred dollars ($700) per month divided equally between them.

(C) If there are three or more children, the children shall be paid
eight hundred forty dollars ($840) per month divided equally
among them.

(3) A surviving spouse who has attained or attains the age of
62 years, and, with respect to that surviving spouse, who was either
continuously married to the member for at least one year prior to
death, or who was married to the member prior to the occurrence
of the injury or onset of the illness that resulted in death, shall be
paid three hundred fifty dollars ($350) per month. No allowance
shall be paid under this paragraph while the surviving spouse is
receiving an allowance under paragraph (1) or while an allowance
is being paid under subparagraph (C) of paragraph (2). The
allowance paid under this paragraph shall be one hundred forty
dollars ($140) per month while an allowance is being paid under
subparagraph (B) of paragraph (2).

(4) If there is no surviving spouse or surviving child who
qualifies for the 1959 survivor allowance, or if the surviving spouse
dies and there is no surviving child, or if the surviving spouse dies
and the children die or marry or, if not incapacitated, reach 22
years of age, each of the member’s dependent parents who has
attained or attains the age of 62 years, and who received at least
one-half of his or her support from the member at the time of the
member’s death, shall be paid three hundred fifty dollars ($350)
per month.

(c) “Stepchildren,” for purposes of this section, shall include
only stepchildren of the member living with the member in a
regular parent-child relationship at the time of the death of the
member.

(d) This section shall apply to beneficiaries of state members
whose death occurred before January 1, 1985. Where a surviving
spouse attained the age of 62 years prior to January 1, 1987,
entitlement shall exist retroactive to January 1, 1985, or to his or
her 62nd birthday, whichever is later. All assets and liabilities of
all state agencies and their employees on account of benefits
provided to beneficiaries specified in this subdivision shall be
pooled into a single account. The board shall transfer from the
reserve for 1959 survivor contributions retained in the retirement
fund an amount sufficient to pay the cost of the increased benefits
provided by this subdivision for beneficiaries of members who
died on or before December 31, 1984.

(e) This section shall not apply to beneficiaries with respect to
the death of a state member, except as provided in subdivision (i),
occurring on or after January 1, 1985, unless provided for in a
memorandum of understanding reached pursuant to Section 3517.5,
or authorized by the Director of Personnel Administration for
classifications of state employees that are excluded from, or not
subject to, collective bargaining. The memorandum of
understanding adopting this section shall be controlling without
further legislative action, except that if those provisions of a
memorandum of understanding require the expenditure of funds,
those provisions shall not become effective unless approved by
the Legislature as provided by law.

(f) This section shall apply, with respect to benefits payable on
and after January 1, 1985, to school members and to school safety
members, as defined in Section 20444. All assets and liabilities of
all school employers, and their employees, on account of benefits
provided under this article shall be pooled into a single account,
and a single employer rate shall be established to provide benefits
under this section on account of school members employed by a
school employer.

(g) This section shall apply to members of a contracting agency
that, in its original contract or by amending its contract, first elects
effective on or after January 1, 1985, and prior to July 1, 2001, to
make this article applicable to local members employed by the
agency. On or after January 1, 1985, and prior to July 1, 2001,
contracting agencies already subject to Section 21571 or Section
21572 may elect by contract amendment to be subject to this
section. All assets and liabilities of all contracting agencies subject
to this section, and their employees, on account of benefits provided
under this article shall be pooled into a single account, and a single
employer rate shall be established to provide benefits under this
section on account of members employed by a contracting agency
that is subject to this section. Any public agency first contracting
with the board on or after January 1, 1994, and prior to July 1,
2001, or any contracting agency amending its contract to remove
exclusions of member classifications on or after January 1, 1994,
and prior to July 1, 2001, that has not, pursuant to Section 418 of
Title 42 of the United States Code, entered into an agreement with
the federal government for the coverage of its employees under
the federal system, shall be subject to this section.

(h) The rate of contribution of an employer subject to this section
shall be figured using the term insurance valuation method. If a
contracting agency that is subject to this section has a surplus in
its 1959 survivor benefit account as of the date the contracting
agency becomes subject to this section, the surplus shall be applied
to reduce its rate of contribution. If a contracting agency that is
subject to this section has a deficit in its 1959 survivor benefit
account as of the date the contracting agency becomes subject to
this section, its rate of contribution shall be increased until the
deficit is paid.

(i) This section shall not apply to beneficiaries with respect to
the death of a state member employed by the California State
University occurring on or after January 1, 1988, unless provided
for in a memorandum of understanding reached pursuant to Chapter
12 (commencing with Section 3560) of Division 4 of Title 1, or
authorized by the Trustees of the California State University for
employees excluded from collective bargaining. The memorandum
of understanding shall be controlling without further legislative
action, except that if the provisions of a memorandum of
understanding require the expenditure of funds, the provisions
shall not become effective unless approved by the Legislature in
the annual Budget Act.

(j) This section shall apply to local members employed by a
contracting agency that has included this benefit in its contract
with the board on or before June 30, 2001.

(k) This section shall not apply to any contracting agency that
first contracts with the board on or after July 1, 2001.

(l) On and after January 1, 2000, all eligible state and school
members covered by this section shall be covered by the benefit
provided under Section 21574.7.

SEC. 38.  

Section 1373.5 of the Health and Safety Code is
amended to read:

1373.5.  

When spouses are both employed as employees, and
both have enrolled themselves and their eligible family members
under a group health care service plan provided by their respective
employers, and each spouse is covered as an employee under the
terms of the same master contract, each spouse may claim on his
or her behalf, or on behalf of his or her enrolled dependents, the
combined maximum contractual benefits to which an employee is
entitled under the terms of the master contract, not to exceed in
the aggregate 100 percent of the charge for the covered expense
or service.

This section shall apply to every group plan entered into,
delivered, amended, or renewed in this state on or after January
1, 1978.

SEC. 39.  

Section 18080 of the Health and Safety Code is
amended to read:

18080.  

Ownership registration and title to a manufactured
home, mobilehome, commercial coach, or truck camper, or floating
home subject to registration may be held by two or more coowners
as follows:

(a)  A manufactured home, mobilehome, commercial coach,
truck camper, or floating home may be registered in the names of
two or more persons as joint tenants. Upon the death of a joint
tenant, the interest of the decedent shall pass to the survivor or
survivors. The signature of each joint tenant or survivor or
survivors, as the case may be, shall be required to transfer or
encumber the title to the manufactured home, mobilehome,
commercial coach, truck camper, or floating home.

(b)  A manufactured home, mobilehome, commercial coach,
truck camper, or floating home may be registered in the names of
two or more persons as tenants in common. If the names of the
tenants in common are separated by the word “and,” each tenant
in common may transfer his or her individual interest in the
manufactured home, mobilehome, commercial coach, truck camper,
or floating home without the signature of the other tenant or tenants
in common. However, the signature of each tenant in common
shall be required to transfer full interest in the title to a new
registered owner. If the names of the tenants in common are
separated by the word “or,” any one of the tenants in common may
transfer full interest in the title to the manufactured home,
mobilehome, commercial coach, truck camper, or floating home
to a new registered owner without the signature of the other tenant
or tenants in common. The signature of each tenant in common is
required in all cases to encumber the title to the manufactured
home, mobilehome, commercial coach, truck camper, or floating
home.

(c)  A manufactured home, mobilehome, commercial coach,
truck camper, or floating home may be registered as community
property in the names of the spouses. The signature of each spouse
shall be required to transfer or encumber the title to the
manufactured home, mobilehome, commercial coach, truck camper,
or floating home.

(d)  All manufactured homes, mobilehomes, commercial
coaches, truck campers, and floating homes registered, on or before
January 1, 1985, in the names of two or more persons as tenants
in common, as provided in subdivision (b), shall be considered to
be the same as if the names of the tenants in common were
separated by the word “or,” as provided in subdivision (b).

SEC. 40.  

Section 25299.54 of the Health and Safety Code is
amended to read:

25299.54.  

(a)  Except as provided in subdivisions (b), (c), (d),
(e), (g), and (h), an owner or operator, required to perform
corrective action pursuant to Section 25296.10, or an owner or
operator who, as of January 1, 1988, is required to perform
corrective action, who has initiated this action in accordance with
Division 7 (commencing with Section 13000) of the Water Code,
who is undertaking corrective action in compliance with waste
discharge requirements or other orders issued pursuant to Division
7 (commencing with Section 13000) of the Water Code, or Chapter
6.7 (commencing with Section 25280), may apply to the board for
satisfaction of a claim filed pursuant to this article.

(b) A person who has failed to comply with Article 3
(commencing with Section 25299.30) is ineligible to file a claim
pursuant to this section.

(c) An owner or operator of an underground storage tank
containing petroleum is ineligible to file a claim pursuant to this
section if the person meets both of the following conditions:

(1) The person knew, before January 1, 1988, of the
unauthorized release of petroleum which is the subject of the claim.

(2) The person did not initiate, on or before June 30, 1988, any
corrective action in accordance with Division 7 (commencing with
Section 13000) of the Water Code concerning the release, or the
person did not, on or before June 30, 1988, initiate corrective action
in accordance with Chapter 6.7 (commencing with Section 25280)
or the person did not initiate action on or before June 30, 1988, to
come into compliance with waste discharge requirements or other
orders issued pursuant to Division 7 (commencing with Section
13000) of the Water Code concerning the release.

(d) An owner or operator who violates Section 25296.10 or a
corrective action order, directive, notification, or approval order
issued pursuant to this chapter, Chapter 6.7 (commencing with
Section 25280) of this code, or Division 7 (commencing with
Section 13000) of the Water Code, is liable for a corrective action
cost that results from the owner’s or operator’s violation and is
ineligible to file a claim pursuant to this section.

(e) Notwithstanding this chapter, a person who owns a tank
located underground that is used to store petroleum may apply to
the board for satisfaction of a claim, and the board may pay the
claim pursuant to Section 25299.57 without making the finding
specified in paragraph (3) of subdivision (d) of Section 25299.57
if all of the following apply:

(1) The tank meets one of the following requirements:

(A) The tank is located at the residence of a person on property
used exclusively for residential purposes at the time of discovery
of the unauthorized release of petroleum.

(B) The tank owner demonstrates that the tank is located on
property that, on and after January 1, 1985, is not used for
agricultural purposes, the tank is of a type specified in
subparagraph (B) of paragraph (1) of subdivision (y) of Section
25281, and the petroleum in the tank is used solely for the purposes
specified in subparagraph (B) of paragraph (1) of subdivision (y)
of Section 25281 on and after January 1, 1985.

(2) The tank is not a tank described in subparagraph (A) of
paragraph (1) of subdivision (y) of Section 25281 and the tank is
not used on or after January 1, 1985, for the purposes specified in
that subparagraph.

(3) The claimant has complied with Section 25299.31 and the
permit requirements of Chapter 6.7 (commencing with Section
25280), or the claimant is not subject to the requirements of those
provisions.

(f) Whenever the board has authorized the prepayment of a
claim pursuant to Section 25299.57, and the amount of money
available in the fund is insufficient to pay the claim, the owner or
operator shall remain obligated to undertake the corrective action
in accordance with Section 25296.10.

(g) The board shall not reimburse a claimant for any eligible
costs for which the claimant has been, or will be, compensated by
another person. This subdivision does not affect reimbursement
of a claimant from the fund under either of the following
circumstances:

(1) The claimant has a written contract, other than an insurance
contract, with another person that requires the claimant to
reimburse the person for payments the person has provided the
claimant pending receipt of reimbursement from the fund.

(2) An insurer has made payments on behalf of the claimant
pursuant to an insurance contract and either of the following
applies:

(A) The insurance contract explicitly coordinates insurance
benefits with the fund and requires the claimant to do both of the
following:

(i) Maintain the claimant’s eligibility for reimbursement of costs
pursuant to this chapter by complying with all applicable eligibility
requirements.

(ii) Reimburse the insurer for costs paid by the insurer pending
reimbursement of those costs by the fund.

(B) The claimant received a letter of commitment prior to June
30, 1999, for the occurrence and the claimant is required to
reimburse the insurer for any costs paid by the insurer pending
reimbursement of those costs by the fund.

(h) (1)  Except as provided in paragraph (2), a person who
purchases or otherwise acquires real property on which an
underground storage tank or tank specified in subdivision (e) is
situated shall not be reimbursed by the board for a cost attributable
to an occurrence that commenced prior to the acquisition of the
real property if both of the following conditions apply:

(A) The purchaser or acquirer knew, or in the exercise of
reasonable diligence would have discovered, that an underground
storage tank or tank specified in subdivision (e) was located on
the real property being acquired.

(B) A person who owned the site or owned or operated an
underground storage tank or tank specified in subdivision (e) at
the site during or after the occurrence and prior to acquisition by
the purchaser or acquirer would not have been eligible for
reimbursement from the fund.

(2) Notwithstanding paragraph (1), if the claim is filed on or
after January 1, 2003, the board may reimburse the eligible costs
claimed by a person who purchases or otherwise acquires real
property on which an underground storage tank or tank specified
in subdivision (e) is situated, if all of the following conditions
apply:

(A) The claimant is the owner or operator of the underground
storage tank or tank specified in subdivision (e) that had an
occurrence that commenced prior to the owner’s acquisition of the
real property.

(B) The claimant satisfies all eligibility requirements, other than
those specified in paragraph (1).

(C) The claimant is not an affiliate of a person whose act or
omission caused or would cause ineligibility for the fund.

(3) If the board reimburses a claim pursuant to paragraph (2),
a person specified in subparagraph (B) of paragraph (1), other than
a person who is ineligible for reimbursement from the fund solely
because the property was acquired from another person who was
ineligible for reimbursement from the fund, shall be liable for the
amount paid from the fund. The Attorney General, upon request
of the board, shall bring a civil action to recover the liability
imposed under this paragraph. All money recovered by the
Attorney General under this paragraph shall be deposited in the
fund.

(4) The liability established pursuant to paragraph (3) does not
limit or supersede liability under any other provision of state or
federal law, including common law.

(5) For purposes of this subdivision, the following definitions
shall apply:

(A) “Affiliate” means a person who has one or more of the
following relationships with another person:

(i) Familial relationship.

(ii) Fiduciary relationship.

(iii) A relationship of direct or indirect control or shared
interests.

(B) Affiliates include, but are not limited to, any of the
following:

(i) Parent corporation and subsidiary.

(ii) Subsidiaries that are owned by the same parent corporation.

(iii) Business entities involved in a reorganization, as defined
in Section 181 of the Corporations Code.

(iv) Corporate officer and corporation.

(v) Shareholder that owns a controlling block of voting stock
and the corporation.

(vi) Partner and the partnership.

(vii) Member and a limited liability company.

(viii) Franchiser and franchisee.

(ix) Settlor, trustee, and beneficiary of a trust.

(x) Debtor and bankruptcy trustee or debtor-in-possession.

(xi) Principal and agent.

(C) “Familial relationship” means relationships between family
members, including, and limited to, a spouse, child, stepchild,
parent, grandparent, grandchild, brother, sister, stepbrother,
stepsister, stepmother, stepfather, mother-in-law, father-in-law,
brother-in-law, sister-in-law, daughter-in-law, son-in-law, and, if
related by blood, uncle, aunt, niece, or nephew.

(D) “Purchases or otherwise acquires real property” means the
acquisition of fee title ownership or the acquisition of the lessee’s
interest in a ground lease of real property on which one or more
underground storage tanks are located if the lease has an initial
original term, including unilateral extension or renewal rights, of
not less than 35 years.

(i) The Legislature finds and declares that the changes made to
subparagraph (A) of paragraph (1) of subdivision (e) by Chapter
1290 of the Statutes of 1992 are declaratory of existing law.

(j) The Legislature finds and declares that the amendment of
subdivisions (a) and (g) by Chapter 328 of the Statutes of 1999 is
declaratory of existing law.

SEC. 41.  

Section 32501 of the Health and Safety Code is
amended to read:

32501.  

Any person desiring in his or her lifetime to promote
the public welfare by founding, endowing, and having maintained
within this state a hospital for the relief of the sick, and for use as
a training school for nurses may, by grant in writing, convey to a
trustee named in the grant and to the successor of such trustee, any
of his or her property situated within this state. If he or she is
married and the property is community, both spouses shall join in
the grant.

SEC. 42.  

Section 10112 of the Insurance Code is amended to
read:

10112.  

Subject to Section 2459 of the Probate Code, in respect
to life or disability insurance, or annuity contracts (except as
provided in Sections 2500 to 2507, inclusive, of the Probate Code
and Section 3500 of the Probate Code and Chapter 4 (commencing
with Section 3600) of Part 8 of Division 4 of the Probate Code),
heretofore or hereafter issued to or upon the life of any person not
of the full age of 18 years for the benefit of such minor or for the
benefit of the father, mother, spouse, child, brother, or sister, of
such minor, or issued to such minor, subject to written consent of
a parent or guardian, upon the life of any person in whom such
minor has an insurable interest for the benefit of himself or such
minor’s father, mother, spouse, child, brother or sister, such minor
shall not, by reason only of such minority, be deemed incompetent
to contract for such insurance or annuity, or for the surrender
thereof, or to exercise all contractual rights thereunder, or, subject
to approval of a parent or guardian, to give a valid discharge for
any benefit accruing or for any money payable thereunder;
provided, that all such contracts made by a minor under the age
of 16 years, as determined by the nearest birthday, shall have the
written consent of a parent or guardian, and that the exercise of
all contractual rights under such contracts, or the surrender thereof,
or the giving of a valid discharge for any benefit accruing or money
payable thereunder, in the case of a minor under the age of 16
years, as determined by the nearest birthday, shall have the written
consent of a parent or guardian.

All such contracts made by a minor not of the full age of 18
years which may result in any personal liability for assessment
shall have the written assumption of any such liability by a parent
or guardian in consideration of the issuance of the contract. Such
assumption shall be in a form approved by the commissioner,
reasonably designed to inform the parent or guardian of the liability
thus assumed.

Such assumption of liability may be made a part of and included
with any written consent of such parent or guardian required under
other provisions of this section and it may be provided therein that
such assumption shall cover only up to the anniversary date of the
policy nearest to the member’s birthday at which he or she attains
age 18.

SEC. 43.  

Section 10121.5 of the Insurance Code is amended
to read:

10121.5.  

(a) When spouses are both employed as employees,
and both have enrolled themselves and their eligible family
members under a group policy of disability insurance provided by
their respective employers, and each spouse is covered as an
employee under the terms of the same master policy, each spouse
may claim on his or her behalf, or on behalf of his or her enrolled
dependents, the combined maximum contractual benefits to which
an employee is entitled under the terms of the master policy, not
to exceed in the aggregate 100 percent of the charge for the covered
expense or service.

(b) When spouses are both employed as employees, and both
have enrolled themselves and their eligible family members under
a self-insured employee welfare benefit plan provided by their
respective employers, and each spouse is covered as an employee
under the terms of the same master contract, each spouse may
claim on his or her behalf, or on behalf of his or her enrolled
dependents, the combined maximum contractual benefits to which
an employee is entitled under the terms of the master contract, not
to exceed in the aggregate 100 percent of the charge for the covered
expense or service.

(c) This section shall apply to every group disability insurance
policy and self-insured employee welfare benefit plan which is
entered into, issued, delivered, amended, or renewed in this state
on or after January 1, 1978.

SEC. 44.  

Section 10320 of the Insurance Code is amended to
read:

10320.  

No policy of accident and sickness insurance shall be
delivered or issued for delivery to any person in this State unless:

(a) The entire money and other considerations therefor are
expressed therein; and

(b) The time at which the insurance takes effect and terminates
is expressed therein; and

(c) It purports to insure only one person, except that a policy
may insure, originally or by subsequent amendment, upon the
application of the head of a family who shall be deemed the
policyholder, any two or more eligible members of that family,
including spouse, dependent children or any children under a
specified age which shall not exceed 19 years and any other person
dependent upon the policyholder; and

(d) The style, arrangement and over-all appearance of the policy
give no undue prominence to any portion of the text, and unless
every printed portion of the text of the policy and of any
endorsements or attached papers is plainly printed in light-faced
type of a style in general use, the size of which shall be uniform
and not less than 10-point with a lower case unspaced alphabet
length not less than 120-point (the “text” shall include all printed
matter except the name and address of the insurer, name or title
of the policy, the brief description, if any, and captions and
subcaptions); and

(e) The exceptions and reductions of indemnity are set forth in
the policy and, except those which are set forth in Article 4a or 5a
of this chapter, are printed, at the insurer’s option, either included
with the benefit provision to which they apply, or under an
appropriate caption such as “Exceptions,” or “Exceptions and
Reductions”; provided, that if an exception or reduction specifically
applies only to a particular benefit of the policy, a statement of
such exception or reduction shall be included with the benefit
provision to which it applies; and

(f) Each such form, including riders and endorsements, shall be
identified by a form number in the lower left-hand corner of the
first page thereof; and

(g) It contains no provision purporting to make any portion of
the charter, rules, constitution, or by-laws of the insurer a part of
the policy unless such portion is set forth in full in the policy,
except in the case of the incorporation of, or reference to, a
statement of rates or classification of risks, or short-rate table filed
with the commissioner; and

(h) If the policy contains amendment, change, limitation,
alteration, or restriction of the printed text by endorsement, or by
any means other than rider upon a separate piece of paper made a
part of such policy; and

(i) If any portion of such policy purports to reduce benefits by
reason of age of the insured and such reduction, in accordance
with the age of the insured as stated in his or her application, would
be effective on the issue date of the policy.

SEC. 45.  

Section 10493 of the Insurance Code is amended to
read:

10493.  

Any incorporated or unincorporated benefit and relief
association organized before January 15, 1951, may procure a
certificate of exemption from the commissioner if it complies with
all of the following:

(a) All of the other requirements of this article.

(b) As respects life or disability or life and disability insurance
transacted by it, it is of an entirely nonprofit nature.

(c) Any one of the following requirements as to membership
and purpose:

(1) It is composed of and its membership limited to the
appointive officers and employees of a public school district or
districts and/or the pupils of any such district or districts, or of any
private school or schools.

(2) It is composed of and its membership limited to the
appointive officers and employees of a municipal playground
system, or the systems of two or more municipalities united in a
league, federation or other association for the purpose of promoting
intercity competitions or other activities, and/or the participants
in dancing, recreational, sporting, educational, social and/or
theatrical activities sponsored and/or directed by such system or
systems and carried on through the use of any of the facilities of
such system or systems.

(3) Its membership in this state is 1,000 or more and it is either
an organization of a purely religious or benevolent character or its
membership is limited to the members of such an organization.

(4) It is composed of and its membership is limited to the
members of another organization which other organization is of a
purely religious or benevolent character and has a total membership
in this state of not less than 1,000.

(5) It is a domestic organization, lodge, society or order which
prior to September 19, 1947, provided life or disability benefits
or both such benefits to its members and

(A) Is of a charitable, benevolent or beneficent character or
becomes such within one year from September 4, 1951, and in
both instances is thereafter of such character, and

(B) Operates in such a manner that the payment of such benefits
even though it be one of the express purposes of such organization,
lodge or order, is as a matter of fact incidental to its charitable,
benevolent or beneficent purposes or within one year from
September 4, 1951, operates in such a manner and in both instances
thereafter operates in such a manner.

(6) Officers and employees of a common employer, and related
dependents of such officers and employees, comprising spouses
and unmarried dependent children under 19 years of age, and living
in the same household.

(d) Pays a filing fee in the amount of seven hundred eight dollars
($708).

SEC. 46.  

Section 10494.6 of the Insurance Code is amended
to read:

10494.6.  

Any employer who qualifies for a certificate of
exemption under Section 10494.5 by virtue of which certificate
he or she maintains a plan for furnishing disability benefits to his
or her employees may, if he or she elects, make available for the
related dependents of his or her employees, comprising spouses
and unmarried dependent children living in the same household,
a supplemental plan of disability benefits containing any or all of
the following benefits, hospital, surgical and medical; provided,
that as to the supplemental plan the Insurance Commissioner finds
that all of the following exist:

(a) The supplemental plan shall be separately stated, setting out
all of the provisions of coverage.

(b) The plan shall set out the respective contributions of the
employer and employees. All contributions of employees received
or retained by the employer shall be trust funds and shall be
separately accounted for by the employer and may not inure to the
benefit of the employer in any manner whatsoever.

(c) The plan permits the disabled individual a free choice of
physician and surgeon, or podiatrist in the case of those services
that are within the scope of practice of podiatric medicine, as
defined in Section 2472 of the Business and Professions Code,
and hospital.

(d) The employer agrees to assume 50 percent of the cost of
maintaining the plan, and he or she further agrees to guarantee the
benefits if the contributions required for the supplementary benefits
are not sufficient to pay the cost of same. The funds necessary to
discharge the employer’s 50 percent assumption shall be trust
funds and shall be separately accounted for by him or her.

SEC. 47.  

Section 3503 of the Labor Code is amended to read:

3503.  

No person is a dependent of any deceased employee
unless in good faith a member of the family or household of the
employee, or unless the person bears to the employee the relation
of spouse, child, posthumous child, adopted child or stepchild,
grandchild, father or mother, father-in-law or mother-in-law,
grandfather or grandmother, brother or sister, uncle or aunt,
brother-in-law or sister-in-law, or nephew or niece.

SEC. 48.  

Section 152.3 of the Penal Code is amended to read:

152.3.  

(a) Any person who reasonably believes that he or she
has observed the commission of any of the following offenses
where the victim is a child under the age of 14 years shall notify
a peace officer, as defined in Chapter 4.5 (commencing with
Section 830) of Title 3 of Part 2:

(1) Murder.

(2) Rape.

(3) A violation of paragraph (1) of subdivision (b) of Section
288 of the Penal Code.

(b) This section shall not be construed to affect privileged
relationships as provided by law.

(c) The duty to notify a peace officer imposed pursuant to
subdivision (a) is satisfied if the notification or an attempt to
provide notice is made by telephone or any other means.

(d) Failure to notify as required pursuant to subdivision (a) is a
misdemeanor and is punishable by a fine of not more than one
thousand five hundred dollars ($1,500), by imprisonment in a
county jail for not more than six months, or by both that fine and
imprisonment.

(e) The requirements of this section shall not apply to the
following:

(1) A person who is related to either the victim or the offender,
including a spouse, parent, child, brother, sister, grandparent,
grandchild, or other person related by consanguinity or affinity.

(2) A person who fails to report based on a reasonable mistake
of fact.

(3) A person who fails to report based on a reasonable fear for
his or her own safety or for the safety of his or her family.

SEC. 49.  

Section 197 of the Penal Code is amended to read:

197.  

Homicide is also justifiable when committed by any person
in any of the following cases:

1. When resisting any attempt to murder any person, or to
commit a felony, or to do some great bodily injury upon any
person; or,

2. When committed in defense of habitation, property, or person,
against one who manifestly intends or endeavors, by violence or
surprise, to commit a felony, or against one who manifestly intends
and endeavors, in a violent, riotous or tumultuous manner, to enter
the habitation of another for the purpose of offering violence to
any person therein; or,

3. When committed in the lawful defense of such person, or of
a spouse, parent, child, master, mistress, or servant of such person,
when there is reasonable ground to apprehend a design to commit
a felony or to do some great bodily injury, and imminent danger
of such design being accomplished; but such person, or the person
in whose behalf the defense was made, if he was the assailant or
engaged in mutual combat, must really and in good faith have
endeavored to decline any further struggle before the homicide
was committed; or,

4. When necessarily committed in attempting, by lawful ways
and means, to apprehend any person for any felony committed, or
in lawfully suppressing any riot, or in lawfully keeping and
preserving the peace.

SEC. 50.  

Section 270e of the Penal Code is amended to read:

270e.  

No other evidence shall be required to prove marriage
of spouses, or that a person is the lawful father or mother of a child
or children, than is or shall be required to prove such facts in a
civil action. In all prosecutions under either Section 270a or 270
of this code, Sections 970, 971, and 980 of the Evidence Code do
not apply, and both spouses shall be competent to testify to any
and all relevant matters, including the fact of marriage and the
parentage of a child or children. Proof of the abandonment and
nonsupport of a spouse, or of the omission to furnish necessary
food, clothing, shelter, or of medical attendance for a child or
children is prima facie evidence that such abandonment and
nonsupport or omission to furnish necessary food, clothing, shelter
or medical attendance is willful. In any prosecution under Section
270, it shall be competent for the people to prove nonaccess of
husband to wife or any other fact establishing nonpaternity of a
husband. In any prosecution pursuant to Section 270, the final
establishment of paternity or nonpaternity in another proceeding
shall be admissible as evidence of paternity or nonpaternity.

SEC. 51.  

Section 273.5 of the Penal Code is amended to read:

273.5.  

(a) Any person who willfully inflicts corporal injury
resulting in a traumatic condition upon a victim described in
subdivision (b) is guilty of a felony, and upon conviction thereof
shall be punished by imprisonment in the state prison for two,
three, or four years, or in a county jail for not more than one year,
or by a fine of up to six thousand dollars ($6,000), or by both that
fine and imprisonment.

(b) Subdivision (a) shall apply if the victim is or was one or
more of the following:

(1) The offender’s spouse or former spouse.

(2) The offender’s cohabitant or former cohabitant.

(3) The offender’s fiancé or fiancée, or someone with whom
the offender has, or previously had, an engagement or dating
relationship, as defined in paragraph (10) of subdivision (f) of
Section 243.

(4) The mother or father of the offender’s child.

(c) Holding oneself out to be the spouse of the person with
whom one is cohabiting is not necessary to constitute cohabitation
as the term is used in this section.

(d) As used in this section, “traumatic condition” means a
condition of the body, such as a wound, or external or internal
injury, including, but not limited to, injury as a result of
strangulation or suffocation, whether of a minor or serious nature,
caused by a physical force. For purposes of this section,
“strangulation” and “suffocation” include impeding the normal
breathing or circulation of the blood of a person by applying
pressure on the throat or neck.

(e) For the purpose of this section, a person shall be considered
the father or mother of another person’s child if the alleged male
parent is presumed the natural father under Sections 7611 and 7612
of the Family Code.

(f) (1) Any person convicted of violating this section for acts
occurring within seven years of a previous conviction under
subdivision (a), or subdivision (d) of Section 243, or Section 243.4,
244, 244.5, or 245, shall be punished by imprisonment in a county
jail for not more than one year, or by imprisonment in the state
prison for two, four, or five years, or by both imprisonment and a
fine of up to ten thousand dollars ($10,000).

(2) Any person convicted of a violation of this section for acts
occurring within seven years of a previous conviction under
subdivision (e) of Section 243 shall be punished by imprisonment
in the state prison for two, three, or four years, or in a county jail
for not more than one year, or by a fine of up to ten thousand
dollars ($10,000), or by both that imprisonment and fine.

(g) If probation is granted to any person convicted under
subdivision (a), the court shall impose probation consistent with
the provisions of Section 1203.097.

(h) If probation is granted, or the execution or imposition of a
sentence is suspended, for any defendant convicted under
subdivision (a) who has been convicted of any prior offense
specified in subdivision (f), the court shall impose one of the
following conditions of probation:

(1) If the defendant has suffered one prior conviction within the
previous seven years for a violation of any offense specified in
subdivision (f), it shall be a condition of probation, in addition to
the provisions contained in Section 1203.097, that he or she be
imprisoned in a county jail for not less than 15 days.

(2) If the defendant has suffered two or more prior convictions
within the previous seven years for a violation of any offense
specified in subdivision (f), it shall be a condition of probation, in
addition to the provisions contained in Section 1203.097, that he
or she be imprisoned in a county jail for not less than 60 days.

(3) The court, upon a showing of good cause, may find that the
mandatory imprisonment required by this subdivision shall not be
imposed and shall state on the record its reasons for finding good
cause.

(i) If probation is granted upon conviction of a violation of
subdivision (a), the conditions of probation may include, consistent
with the terms of probation imposed pursuant to Section 1203.097,
in lieu of a fine, one or both of the following requirements:

(1) That the defendant make payments to a battered women’s
shelter, up to a maximum of five thousand dollars ($5,000),
pursuant to Section 1203.097.

(2) (A) That the defendant reimburse the victim for reasonable
costs of counseling and other reasonable expenses that the court
finds are the direct result of the defendant’s offense.

(B) For any order to pay a fine, make payments to a battered
women’s shelter, or pay restitution as a condition of probation
under this subdivision, the court shall make a determination of the
defendant’s ability to pay. An order to make payments to a battered
women’s shelter shall not be made if it would impair the ability
of the defendant to pay direct restitution to the victim or
court-ordered child support. If the injury to a married person is
caused in whole or in part by the criminal acts of his or her spouse
in violation of this section, the community property may not be
used to discharge the liability of the offending spouse for restitution
to the injured spouse, required by Section 1203.04, as operative
on or before August 2, 1995, or Section 1202.4, or to a shelter for
costs with regard to the injured spouse and dependents, required
by this section, until all separate property of the offending spouse
is exhausted.

(j) Upon conviction under subdivision (a), the sentencing court
shall also consider issuing an order restraining the defendant from
any contact with the victim, which may be valid for up to 10 years,
as determined by the court. It is the intent of the Legislature that
the length of any restraining order be based upon the seriousness
of the facts before the court, the probability of future violations,
and the safety of the victim and his or her immediate family. This
protective order may be issued by the court whether the defendant
is sentenced to state prison or county jail, or if imposition of
sentence is suspended and the defendant is placed on probation.

(k) If a peace officer makes an arrest for a violation of this
section, the peace officer is not required to inform the victim of
his or her right to make a citizen’s arrest pursuant to subdivision
(b) of Section 836.

SEC. 52.  

Section 281 of the Penal Code is amended to read:

281.  

(a) Every person having a spouse living, who marries
any other person, except in the cases specified in Section 282, is
guilty of bigamy.

(b) Upon a trial for bigamy, it is not necessary to prove either
of the marriages by the register, certificate, or other record evidence
thereof, but the marriages may be proved by evidence which is
admissible to prove a marriage in other cases; and when the second
marriage took place out of this state, proof of that fact,
accompanied with proof of cohabitation thereafter in this state, is
sufficient to sustain the charge.

SEC. 53.  

Section 282 of the Penal Code is amended to read:

282.  

Section 281 does not extend to any of the following:

(a) To any person by reason of any former marriage whose
spouse by such marriage has been absent for five successive years
without being known to such person within that time to be living.

(b) To any person by reason of any former marriage which has
been pronounced void, annulled, or dissolved by the judgment of
a competent court.

SEC. 54.  

Section 284 of the Penal Code is amended to read:

284.  

Every person who knowingly and willfully marries the
spouse of another, in any case in which such spouse would be
punishable under the provisions of this chapter, is punishable by
fine not less than five thousand dollars ($5,000), or by
imprisonment pursuant to subdivision (h) of Section 1170.

SEC. 55.  

Section 534 of the Penal Code is amended to read:

534.  

Every married person who falsely and fraudulently
represents himself or herself as competent to sell or mortgage any
real estate, to the validity of which sale or mortgage the assent or
concurrence of his or her spouse is necessary, and under such
representations willfully conveys or mortgages the same, is guilty
of felony.

SEC. 56.  

Section 4002 of the Penal Code is amended to read:

4002.  

(a) Persons committed on criminal process and detained
for trial, persons convicted and under sentence, and persons
committed upon civil process, shall not be kept or put in the same
room, nor shall male and female prisoners, except spouses, sleep,
dress or undress, bathe, or perform eliminatory functions in the
same room. However, persons committed on criminal process and
detained for trial may be kept or put in the same room with persons
convicted and under sentence for the purpose of participating in
supervised activities and for the purpose of housing, provided, that
the housing occurs as a result of a classification procedure that is
based upon objective criteria, including consideration of criminal
sophistication, seriousness of crime charged, presence or absence
of assaultive behavior, age, and other criteria that will provide for
the safety of the prisoners and staff.

(b) Inmates who are held pending civil process under the
sexually violent predator laws shall be held in administrative
segregation. For purposes of this subdivision, administrative
segregation means separate and secure housing that does not
involve any deprivation of privileges other than what is necessary
to protect the inmates and staff. Consistent with Section 1610, to
the extent possible, the person shall continue in his or her course
of treatment, if any. An alleged sexually violent predator held
pending civil process may waive placement in secure housing by
petitioning the court for a waiver. In order to grant the waiver, the
court must find that the waiver is voluntary and intelligent, and
that granting the waiver would not interfere with any treatment
programming for the person requesting the waiver. A person
granted a waiver shall be placed with inmates charged with similar
offenses or with similar criminal histories, based on the objective
criteria set forth in subdivision (a).

(c) Nothing in this section shall be construed to impose any
requirement upon a county to confine male and female prisoners
in the same or an adjoining facility or impose any duty upon a
county to establish or maintain programs which involve the joint
participation of male and female prisoners.

SEC. 57.  

Section 13700 of the Penal Code is amended to read:

13700.  

As used in this title:

(a) “Abuse” means intentionally or recklessly causing or
attempting to cause bodily injury, or placing another person in
reasonable apprehension of imminent serious bodily injury to
himself or herself, or another.

(b) “Domestic violence” means abuse committed against an
adult or a minor who is a spouse, former spouse, cohabitant, former
cohabitant, or person with whom the suspect has had a child or is
having or has had a dating or engagement relationship. For
purposes of this subdivision, “cohabitant” means two unrelated
adult persons living together for a substantial period of time,
resulting in some permanency of relationship. Factors that may
determine whether persons are cohabiting include, but are not
limited to, (1) sexual relations between the parties while sharing
the same living quarters, (2) sharing of income or expenses, (3)
joint use or ownership of property, (4) whether the parties hold
themselves out as spouses, (5) the continuity of the relationship,
and (6) the length of the relationship.

(c) “Officer” means any officer or employee of a local police
department or sheriff’s office, and any peace officer of the
Department of the California Highway Patrol, the Department of
Parks and Recreation, the University of California Police
Department, or the California State University and College Police
Departments, as defined in Section 830.2, a peace officer of the
Department of General Services of the City of Los Angeles, as
defined in subdivision (c) of Section 830.31, a housing authority
patrol officer, as defined in subdivision (d) of Section 830.31, a
peace officer as defined in subdivisions (a) and (b) of Section
830.32, or a peace officer as defined in subdivision (a) of Section
830.33.

(d) “Victim” means a person who is a victim of domestic
violence.

SEC. 58.  

Section 59 of the Probate Code is amended to read:

59.  

“Predeceased spouse” means a person who died before the
decedent while married to the decedent, except that the term does
not include any of the following:

(a) A person who obtains or consents to a final decree or
judgment of dissolution of marriage from the decedent or a final
decree or judgment of annulment of their marriage, which decree
or judgment is not recognized as valid in this state, unless they (1)
subsequently participate in a marriage ceremony purporting to
marry each to the other or (2) subsequently live together as spouses.

(b) A person who, following a decree or judgment of dissolution
or annulment of marriage obtained by the decedent, participates
in a marriage ceremony to a third person.

(c) A person who was a party to a valid proceeding concluded
by an order purporting to terminate all marital property rights.

SEC. 59.  

Section 78 of the Probate Code is amended to read:

78.  

“Surviving spouse” does not include any of the following:

(a) A person whose marriage to the decedent has been dissolved
or annulled, unless, by virtue of a subsequent marriage, the person
is married to the decedent at the time of death.

(b) A person who obtains or consents to a final decree or
judgment of dissolution of marriage from the decedent or a final
decree or judgment of annulment of their marriage, which decree
or judgment is not recognized as valid in this state, unless they (1)
subsequently participate in a marriage ceremony purporting to
marry each to the other or (2) subsequently live together as spouses.

(c) A person who, following a decree or judgment of dissolution
or annulment of marriage obtained by the decedent, participates
in a marriage ceremony with a third person.

(d) A person who was a party to a valid proceeding concluded
by an order purporting to terminate all marital property rights.

SEC. 60.  

Section 100 of the Probate Code is amended to read:

100.  

(a) Upon the death of a married person, one-half of the
community property belongs to the surviving spouse and the other
half belongs to the decedent.

(b) Notwithstanding subdivision (a), spouses may agree in
writing to divide their community property on the basis of a non
pro rata division of the aggregate value of the community property
or on the basis of a division of each individual item or asset of
community property, or partly on each basis. Nothing in this
subdivision shall be construed to require this written agreement
in order to permit or recognize a non pro rata division of
community property.

SEC. 61.  

Section 101 of the Probate Code is amended to read:

101.  

(a) Upon the death of a married person domiciled in this
state, one-half of the decedent’s quasi-community property belongs
to the surviving spouse and the other half belongs to the decedent.

(b) Notwithstanding subdivision (a), spouses may agree in
writing to divide their quasi-community property on the basis of
a non pro rata division of the aggregate value of the
quasi-community property, or on the basis of a division of each
individual item or asset of quasi-community property, or partly on
each basis. Nothing in this subdivision shall be construed to require
this written agreement in order to permit or recognize a non pro
rata division of quasi-community property.

SEC. 62.  

Section 103 of the Probate Code is amended to read:

103.  

Except as provided by Section 224, if spouses die leaving
community or quasi-community property and it cannot be
established by clear and convincing evidence that one spouse
survived the other:

(a) One-half of the community property and one-half of the
quasi-community property shall be administered or distributed, or
otherwise dealt with, as if one spouse had survived and as if that
half belonged to that spouse.

(b) The other half of the community property and the other half
of the quasi-community property shall be administered or
distributed, or otherwise dealt with, as if the other spouse had
survived and as if that half belonged to that spouse.

SEC. 63.  

Section 2407 of the Probate Code is amended to read:

2407.  

This chapter applies to property owned by spouses as
community property only to the extent authorized by Part 6
(commencing with Section 3000).

SEC. 64.  

Section 5203 of the Probate Code is amended to read:

5203.  

(a) Words in substantially the following form in a
signature card, passbook, contract, or instrument evidencing an
account, or words to the same effect, executed before, on, or after
July 1, 1990, create the following accounts:

(1) Joint account: “This account or certificate is owned by the
named parties. Upon the death of any of them, ownership passes
to the survivor(s).”

(2) P.O.D. account with single party: “This account or certificate
is owned by the named party. Upon the death of that party,
ownership passes to the named pay-on-death payee(s).”

(3) P.O.D. account with multiple parties: “This account or
certificate is owned by the named parties. Upon the death of any
of them, ownership passes to the survivor(s). Upon the death of
all of them, ownership passes to the named pay-on-death payee(s).”

(4) Joint account of spouses with right of survivorship: “This
account or certificate is owned by the named parties, who are
spouses, and is presumed to be their community property. Upon
the death of either of them, ownership passes to the survivor.”

(5) Community property account of spouses: “This account or
certificate is the community property of the named parties who
are spouses. The ownership during lifetime and after the death of
a spouse is determined by the law applicable to community
property generally and may be affected by a will.”

(6) Tenancy in common account: “This account or certificate
is owned by the named parties as tenants in common. Upon the
death of any party, the ownership interest of that party passes to
the named pay-on-death payee(s) of that party or, if none, to the
estate of that party.”

(b) Use of the form language provided in this section is not
necessary to create an account that is governed by this part. If the
contract of deposit creates substantially the same relationship
between the parties as an account created using the form language
provided in this section, this part applies to the same extent as if
the form language had been used.

SEC. 65.  

Section 5600 of the Probate Code is amended to read:

5600.  

(a) Except as provided in subdivision (b), a nonprobate
transfer to the transferor’s former spouse, in an instrument executed
by the transferor before or during the marriage, fails if, at the time
of the transferor’s death, the former spouse is not the transferor’s
surviving spouse as defined in Section 78, as a result of the
dissolution or annulment of the marriage. A judgment of legal
separation that does not terminate the status of spouses is not a
dissolution for purposes of this section.

(b) Subdivision (a) does not cause a nonprobate transfer to fail
in any of the following cases:

(1) The nonprobate transfer is not subject to revocation by the
transferor at the time of the transferor’s death.

(2) There is clear and convincing evidence that the transferor
intended to preserve the nonprobate transfer to the former spouse.

(3) A court order that the nonprobate transfer be maintained on
behalf of the former spouse is in effect at the time of the
transferor’s death.

(c) Where a nonprobate transfer fails by operation of this section,
the instrument making the nonprobate transfer shall be treated as
it would if the former spouse failed to survive the transferor.

(d) Nothing in this section affects the rights of a subsequent
purchaser or encumbrancer for value in good faith who relies on
the apparent failure of a nonprobate transfer under this section or
who lacks knowledge of the failure of a nonprobate transfer under
this section.

(e) As used in this section, “nonprobate transfer” means a
provision, other than a provision of a life insurance policy, of either
of the following types:

(1) A provision of a type described in Section 5000.

(2) A provision in an instrument that operates on death, other
than a will, conferring a power of appointment or naming a trustee.

SEC. 66.  

Section 5601 of the Probate Code is amended to read:

5601.  

(a) Except as provided in subdivision (b), a joint tenancy
between the decedent and the decedent’s former spouse, created
before or during the marriage, is severed as to the decedent’s
interest if, at the time of the decedent’s death, the former spouse
is not the decedent’s surviving spouse as defined in Section 78, as
a result of the dissolution or annulment of the marriage. A judgment
of legal separation that does not terminate the status of spouses is
not a dissolution for purposes of this section.

(b) Subdivision (a) does not sever a joint tenancy in either of
the following cases:

(1) The joint tenancy is not subject to severance by the decedent
at the time of the decedent’s death.

(2) There is clear and convincing evidence that the decedent
intended to preserve the joint tenancy in favor of the former spouse.

(c) Nothing in this section affects the rights of a subsequent
purchaser or encumbrancer for value in good faith who relies on
an apparent severance under this section or who lacks knowledge
of a severance under this section.

(d) For purposes of this section, property held in “joint tenancy”
includes property held as community property with right of
survivorship, as described in Section 682.1 of the Civil Code.

SEC. 67.  

Section 6122 of the Probate Code is amended to read:

6122.  

(a) Unless the will expressly provides otherwise, if after
executing a will the testator’s marriage is dissolved or annulled,
the dissolution or annulment revokes all of the following:

(1) Any disposition or appointment of property made by the
will to the former spouse.

(2) Any provision of the will conferring a general or special
power of appointment on the former spouse.

(3) Any provision of the will nominating the former spouse as
executor, trustee, conservator, or guardian.

(b) If any disposition or other provision of a will is revoked
solely by this section, it is revived by the testator’s remarriage to
the former spouse.

(c) In case of revocation by dissolution or annulment:

(1) Property prevented from passing to a former spouse because
of the revocation passes as if the former spouse failed to survive
the testator.

(2) Other provisions of the will conferring some power or office
on the former spouse shall be interpreted as if the former spouse
failed to survive the testator.

(d) For purposes of this section, dissolution or annulment means
any dissolution or annulment which would exclude the spouse as
a surviving spouse within the meaning of Section 78. A decree of
legal separation which does not terminate the status of spouses is
not a dissolution for purposes of this section.

(e) Except as provided in Section 6122.1, no change of
circumstances other than as described in this section revokes a
will.

(f) Subdivisions (a) to (d), inclusive, do not apply to any case
where the final judgment of dissolution or annulment of marriage
occurs before January 1, 1985. That case is governed by the law
in effect prior to January 1, 1985.

SEC. 68.  

Section 6227 of the Probate Code is amended to read:

6227.  

(a) If after executing a California statutory will the
testator’s marriage is dissolved or annulled, the dissolution or
annulment revokes any disposition of property made by the will
to the former spouse and any nomination of the former spouse as
executor, trustee, guardian, or custodian made by the will. If any
disposition or nomination is revoked solely by this section, it is
revived by the testator’s remarriage to the former spouse.

(b) In case of revocation by dissolution or annulment:

(1) Property prevented from passing to a former spouse because
of the revocation passes as if the former spouse failed to survive
the testator.

(2) Provisions nominating the former spouse as executor, trustee,
guardian, or custodian shall be interpreted as if the former spouse
failed to survive the testator.

(c) For purposes of this section, dissolution or annulment means
any dissolution or annulment that would exclude the spouse as a
surviving spouse within the meaning of Section 78. A decree of
legal separation which does not terminate the status of spouses is
not a dissolution or annulment for purposes of this section.

(d) This section applies to any California statutory will, without
regard to the time when the will was executed, but this section
does not apply to any case where the final judgment of dissolution
or annulment of marriage occurs before January 1, 1985; and, if
the final judgment of dissolution or annulment of marriage occurs
before January 1, 1985, the case is governed by the law that applied
prior to January 1, 1985.

SEC. 69.  

Section 6240 of the Probate Code is amended to read:

6240.  

The following is the California Statutory Will form:

QUESTIONS AND ANSWERS ABOUT THIS CALIFORNIA
STATUTORY WILL

The following information, in question and answer form, is not
a part of the California Statutory Will. It is designed to help you
understand about Wills and to decide if this Will meets your needs.
This Will is in a simple form. The complete text of each paragraph
of this Will is printed at the end of the Will.

1. What happens if I die without a Will?  If you die without a
Will, what you own (your “assets”) in your name alone will be
divided among your spouse, domestic partner, children, or other
relatives according to state law. The court will appoint a relative
to collect and distribute your assets.

2. What can a Will do for me?  In a Will you may designate
who will receive your assets at your death. You may designate
someone (called an “executor”) to appear before the court, collect
your assets, pay your debts and taxes, and distribute your assets
as you specify. You may nominate someone (called a “guardian”)
to raise your children who are under age 18. You may designate
someone (called a “custodian”) to manage assets for your children
until they reach any age from 18 to 25.

3. Does a Will avoid probate?  No. With or without a Will,
assets in your name alone usually go through the court probate
process. The court’s first job is to determine if your Will is valid.

4. What is community property?  Can I give away my share in
my Will? If you are married and you or your spouse earned money
during your marriage from work and wages, that money (and the
assets bought with it) is community property. Your Will can only
give away your one-half of community property. Your Will cannot
give away your spouse’s one-half of community property.

5. Does my Will give away all of my assets?  Do all assets go
through probate? No. Money in a joint tenancy bank account
automatically belongs to the other named owner without probate.
If your spouse, domestic partner, or child is on the deed to your
house as a joint tenant, the house automatically passes to him or
her. Life insurance and retirement plan benefits may pass directly
to the named beneficiary. A Will does not necessarily control how
these types of “nonprobate” assets pass at your death.

6. Are there different kinds of Wills?  Yes. There are
handwritten Wills, typewritten Wills, attorney-prepared Wills, and
statutory Wills. All are valid if done precisely as the law requires.
You should see a lawyer if you do not want to use this Statutory
Will or if you do not understand this form.

7. Who may use this Will?  This Will is based on California
law. It is designed only for California residents. You may use this
form if you are single, married, a member of a domestic
partnership, or divorced. You must be age 18 or older and of sound
mind.

8. Are there any reasons why I should NOT use this Statutory
Will?  Yes. This is a simple Will. It is not designed to reduce death
taxes or other taxes. Talk to a lawyer to do tax planning, especially
if (i) your assets will be worth more than $600,000 or the current
amount excluded from estate tax under federal law at your death,
(ii) you own business-related assets, (iii) you want to create a trust
fund for your children’s education or other purposes, (iv) you own
assets in some other state, (v) you want to disinherit your spouse,
domestic partner, or descendants, or (vi) you have valuable interests
in pension or profit-sharing plans. You should talk to a lawyer
who knows about estate planning if this Will does not meet your
needs. This Will treats most adopted children like natural children.
You should talk to a lawyer if you have stepchildren or foster
children whom you have not adopted.

9. May I add or cross out any words on this Will?  No. If you
do, the Will may be invalid or the court may ignore the crossed
out or added words. You may only fill in the blanks. You may
amend this Will by a separate document (called a codicil). Talk to
a lawyer if you want to do something with your assets which is
not allowed in this form.

10. May I change my Will?  Yes. A Will is not effective until
you die. You may make and sign a new Will. You may change
your Will at any time, but only by an amendment (called a codicil).
You can give away or sell your assets before your death. Your
Will only acts on what you own at death.

11. Where should I keep my Will?  After you and the witnesses
sign the Will, keep your Will in your safe deposit box or other safe
place. You should tell trusted family members where your Will is
kept.

12. When should I change my Will?  You should make and sign
a new Will if you marry, divorce, or terminate your domestic
partnership after you sign this Will. Divorce, annulment, or
termination of a domestic partnership automatically cancels all
property stated to pass to a former spouse or domestic partner
under this Will, and revokes the designation of a former spouse
or domestic partner as executor, custodian, or guardian. You should
sign a new Will when you have more children, or if your spouse
or a child dies, or a domestic partner dies or marries. You may
want to change your Will if there is a large change in the value of
your assets. You may also want to change your Will if you enter
a domestic partnership or your domestic partnership has been
terminated after you sign this Will.

13. What can I do if I do not understand something in this Will? 
If there is anything in this Will you do not understand, ask a lawyer
to explain it to you.

14. What is an executor?  An “executor” is the person you name
to collect your assets, pay your debts and taxes, and distribute your
assets as the court directs. It may be a person or it may be a
qualified bank or trust company.

15. Should I require a bond?  You may require that an executor
post a “bond.” A bond is a form of insurance to replace assets that
may be mismanaged or stolen by the executor. The cost of the
bond is paid from the estate’s assets.

16. What is a guardian?  Do I need to designate one? If you
have children under age 18, you should designate a guardian of
their “persons” to raise them.

17. What is a custodian?  Do I need to designate one? A
“custodian” is a person you may designate to manage assets for
someone (including a child) who is under the age of 25 and who
receives assets under your Will. The custodian manages the assets
and pays as much as the custodian determines is proper for health,
support, maintenance, and education. The custodian delivers what
is left to the person when the person reaches the age you choose
(from 18 to 25). No bond is required of a custodian.

18. Should I ask people if they are willing to serve before I
designate them as executor, guardian, or custodian?  Probably
yes. Some people and banks and trust companies may not consent
to serve or may not be qualified to act.

19. What happens if I make a gift in this Will to someone and
that person dies before I do?  A person must survive you by 120
hours to take a gift under this Will. If that person does not, then
the gift fails and goes with the rest of your assets. If the person
who does not survive you is a relative of yours or your spouse,
then certain assets may go to the relative’s descendants.

20. What is a trust?  There are many kinds of trusts, including
trusts created by Wills (called “testamentary trusts”) and trusts
created during your lifetime (called “revocable living trusts”). Both
kinds of trusts are long-term arrangements in which a manager
(called a “trustee”) invests and manages assets for someone (called
a “beneficiary”) on the terms you specify. Trusts are too
complicated to be used in this Statutory Will. You should see a
lawyer if you want to create a trust.

21. What is a domestic partner?  You have a domestic partner
if you have met certain legal requirements and filed a form entitled
“Declaration of Domestic Partnership” with the Secretary of State.
Notwithstanding Section 299.6 of the Family Code, if you have
not filed a Declaration of Domestic Partnership with the Secretary
of State, you do not meet the required definition and should not
use the section of the Statutory Will form that refers to domestic
partners even if you have registered your domestic partnership
with another governmental entity. If you are unsure if you have a
domestic partner or if your domestic partnership meets the required
definition, please contact the Secretary of State’s office.

INSTRUCTIONS

1. READ THE WILL.  Read the whole Will first. If you do not
understand something, ask a lawyer to explain it to you.

2. FILL IN THE BLANKS.  Fill in the blanks. Follow the
instructions in the form carefully. Do not add any words to the
Will (except for filling in blanks) or cross out any words.

3. DATE AND SIGN THE WILL AND HAVE TWO WITNESSES
SIGN IT.  Date and sign the Will and have two witnesses sign it.
You and the witnesses should read and follow the Notice to
Witnesses found at the end of this Will.

*You do not need to have this document notarized. Notarization
will not fulfill the witness requirement.

PRINTER PLEASE NOTE: TIP-IN MATERIAL TO BE INSERTED

[6 pages]

SEC. 70.  

Section 13500 of the Probate Code is amended to
read:

13500.  

Except as provided in this chapter, when a spouse dies
intestate leaving property that passes to the surviving spouse under
Section 6401, or dies testate and by his or her will devises all or
a part of his or her property to the surviving spouse, the property
passes to the survivor subject to the provisions of Chapter 2
(commencing with Section 13540) and Chapter 3 (commencing
with Section 13550), and no administration is necessary.

SEC. 71.  

Section 13600 of the Probate Code is amended to
read:

13600.  

(a) At any time after a spouse dies, the surviving spouse
or the guardian or conservator of the estate of the surviving spouse
may, without procuring letters of administration or awaiting probate
of the will, collect salary or other compensation owed by an
employer for personal services of the deceased spouse, including
compensation for unused vacation, not in excess of fifteen thousand
dollars ($15,000) net.

(b) Not more than fifteen thousand dollars ($15,000) net in the
aggregate may be collected by or for the surviving spouse under
this chapter from all of the employers of the decedent.

(c) For the purposes of this chapter, a guardian or conservator
of the estate of the surviving spouse may act on behalf of the
surviving spouse without authorization or approval of the court in
which the guardianship or conservatorship proceeding is pending.

(d) The fifteen-thousand-dollar ($15,000) net limitation set forth
in subdivisions (a) and (b) does not apply to the surviving spouse
or the guardian or conservator of the estate of the surviving spouse
of a firefighter or peace officer described in subdivision (a) of
Section 22820 of the Government Code.

(e) On January 1, 2003, and on January 1 of each year thereafter,
the maximum net amount of salary or compensation payable under
subdivisions (a) and (b) to the surviving spouse or the guardian or
conservator of the estate of the surviving spouse may be adjusted
to reflect any increase in the cost of living occurring after January
1 of the immediately preceding year. The United States city average
of the “Consumer Price Index for All Urban Consumers,” as
published by the United States Bureau of Labor Statistics, shall
be used as the basis for determining the changes in the cost of
living. The cost-of-living increase shall equal or exceed 1 percent
before any adjustment is made. The net amount payable may not
be decreased as a result of the cost-of-living adjustment.

SEC. 72.  

Section 17021 of the Revenue and Taxation Code is
amended to read:

17021.  

As used in this part, if the spouses therein referred to
are divorced, wherever appropriate to the meaning of this part, the
term “spouse” shall be read “former spouse.”

SEC. 73.  

Section 17039 of the Revenue and Taxation Code is
amended to read:

17039.  

(a) Notwithstanding any provision in this part to the
contrary, for the purposes of computing tax credits, the term “net
tax” means the tax imposed under either Section 17041 or 17048
plus the tax imposed under Section 17504 (relating to lump-sum
distributions) less the credits allowed by Section 17054 (relating
to personal exemption credits) and any amount imposed under
paragraph (1) of subdivision (d) and paragraph (1) of subdivision
(e) of Section 17560. Notwithstanding the preceding sentence, the
“net tax” shall not be less than the tax imposed under Section
17504 (relating to the separate tax on lump-sum distributions), if
any. Credits shall be allowed against “net tax” in the following
order:

(1) Credits that do not contain carryover or refundable
provisions, except those described in paragraphs (4) and (5).

(2) Credits that contain carryover provisions but do not contain
refundable provisions, except for those that are allowed to reduce
“net tax” below the tentative minimum tax, as defined by Section
17062.

(3) Credits that contain both carryover and refundable
provisions.

(4) The minimum tax credit allowed by Section 17063 (relating
to the alternative minimum tax).

(5) Credits that are allowed to reduce “net tax” below the
tentative minimum tax, as defined by Section 17062.

(6) Credits for taxes paid to other states allowed by Chapter 12
(commencing with Section 18001).

(7) Credits that contain refundable provisions but do not contain
carryover provisions.

The order within each paragraph shall be determined by the
Franchise Tax Board.

(b) Notwithstanding the provisions of Sections 17061 (relating
to refunds pursuant to the Unemployment Insurance Code) and
19002 (relating to tax withholding), the credits provided in those
sections shall be allowed in the order provided in paragraph (6) of
subdivision (a).

(c) (1) Notwithstanding any other provision of this part, no tax
credit shall reduce the tax imposed under Section 17041 or 17048
plus the tax imposed under Section 17504 (relating to the separate
tax on lump-sum distributions) below the tentative minimum tax,
as defined by Section 17062, except the following credits:

(A) The credit allowed by Section 17052.2 (relating to teacher
retention tax credit).

(B) The credit allowed by former Section 17052.4 (relating to
solar energy).

(C) The credit allowed by former Section 17052.5 (relating to
solar energy, repealed on January 1, 1987).

(D) The credit allowed by former Section 17052.5 (relating to
solar energy, repealed on December 1, 1994).

(E) The credit allowed by Section 17052.12 (relating to research
expenses).

(F) The credit allowed by former Section 17052.13 (relating to
sales and use tax credit).

(G) The credit allowed by former Section 17052.15 (relating to
Los Angeles Revitalization Zone sales tax credit).

(H) The credit allowed by Section 17052.25 (relating to the
adoption costs credit).

(I) The credit allowed by Section 17053.5 (relating to the
renter’s credit).

(J) The credit allowed by former Section 17053.8 (relating to
enterprise zone hiring credit).

(K) The credit allowed by former Section 17053.10 (relating to
Los Angeles Revitalization Zone hiring credit).

(L) The credit allowed by former Section 17053.11 (relating to
program area hiring credit).

(M) For each taxable year beginning on or after January 1, 1994,
the credit allowed by former Section 17053.17 (relating to Los
Angeles Revitalization Zone hiring credit).

(N) The credit allowed by Section 17053.33 (relating to targeted
tax area sales or use tax credit).

(O) The credit allowed by Section 17053.34 (relating to targeted
tax area hiring credit).

(P) The credit allowed by Section 17053.49 (relating to qualified
property).

(Q) The credit allowed by Section 17053.70 (relating to
enterprise zone sales or use tax credit).

(R) The credit allowed by Section 17053.74 (relating to
enterprise zone hiring credit).

(S) The credit allowed by Section 17054 (relating to credits for
personal exemption).

(T) The credit allowed by Section 17054.5 (relating to the credits
for a qualified joint custody head of household and a qualified
taxpayer with a dependent parent).

(U) The credit allowed by Section 17054.7 (relating to the credit
for a senior head of household).

(V) The credit allowed by former Section 17057 (relating to
clinical testing expenses).

(W) The credit allowed by Section 17058 (relating to
low-income housing).

(X) For taxable years beginning on or after January 1, 2014, the
credit allowed by Section 17059.2 (relating to GO-Biz California
Competes Credit).

(Y) The credit allowed by Section 17061 (relating to refunds
pursuant to the Unemployment Insurance Code).

(Z) Credits for taxes paid to other states allowed by Chapter 12
(commencing with Section 18001).

(AA) The credit allowed by Section 19002 (relating to tax
withholding).

(2) Any credit that is partially or totally denied under paragraph
(1) shall be allowed to be carried over and applied to the net tax
in succeeding taxable years, if the provisions relating to that credit
include a provision to allow a carryover when that credit exceeds
the net tax.

(d) Unless otherwise provided, any remaining carryover of a
credit allowed by a section that has been repealed or made
inoperative shall continue to be allowed to be carried over under
the provisions of that section as it read immediately prior to being
repealed or becoming inoperative.

(e) (1) Unless otherwise provided, if two or more taxpayers
(other than spouses) share in costs that would be eligible for a tax
credit allowed under this part, each taxpayer shall be eligible to
receive the tax credit in proportion to his or her respective share
of the costs paid or incurred.

(2) In the case of a partnership, the credit shall be allocated
among the partners pursuant to a written partnership agreement in
accordance with Section 704 of the Internal Revenue Code, relating
to partner’s distributive share.

(3) In the case of spouses who file separate returns, the credit
may be taken by either or equally divided between them.

(f) Unless otherwise provided, in the case of a partnership, any
credit allowed by this part shall be computed at the partnership
level, and any limitation on the expenses qualifying for the credit
or limitation upon the amount of the credit shall be applied to the
partnership and to each partner.

(g) (1) With respect to any taxpayer that directly or indirectly
owns an interest in a business entity that is disregarded for tax
purposes pursuant to Section 23038 and any regulations thereunder,
the amount of any credit or credit carryforward allowable for any
taxable year attributable to the disregarded business entity shall
be limited in accordance with paragraphs (2) and (3).

(2) The amount of any credit otherwise allowed under this part,
including any credit carryover from prior years, that may be applied
to reduce the taxpayer’s “net tax,” as defined in subdivision (a),
for the taxable year shall be limited to an amount equal to the
excess of the taxpayer’s regular tax (as defined in Section 17062),
determined by including income attributable to the disregarded
business entity that generated the credit or credit carryover, over
the taxpayer’s regular tax (as defined in Section 17062), determined
by excluding the income attributable to that disregarded business
entity. No credit shall be allowed if the taxpayer’s regular tax (as
defined in Section 17062), determined by including the income
attributable to the disregarded business entity, is less than the
taxpayer’s regular tax (as defined in Section 17062), determined
by excluding the income attributable to the disregarded business
entity.

(3) If the amount of a credit allowed pursuant to the section
establishing the credit exceeds the amount allowable under this
subdivision in any taxable year, the excess amount may be carried
over to subsequent taxable years pursuant to subdivisions (c) and
(d).

(h) (1) Unless otherwise specifically provided, in the case of a
taxpayer that is a partner or shareholder of an eligible pass-thru
entity described in paragraph (2), any credit passed through to the
taxpayer in the taxpayer’s first taxable year beginning on or after
the date the credit is no longer operative may be claimed by the
taxpayer in that taxable year, notwithstanding the repeal of the
statute authorizing the credit prior to the close of that taxable year.

(2) For purposes of this subdivision, “eligible pass-thru entity”
means any partnership or “S” corporation that files its return on a
fiscal year basis pursuant to Section 18566, and that is entitled to
a credit pursuant to this part for the taxable year that begins during
the last year the credit is operative.

(3) This subdivision shall apply to credits that become
inoperative on or after the operative date of the act adding this
subdivision.

SEC. 74.  

Section 17045 of the Revenue and Taxation Code is
amended to read:

17045.  

In the case of a joint return of a married couple under
Section 18521, the tax imposed by Section 17041 shall be twice
the tax which would be imposed if the taxable income were cut in
half.

For purposes of this section, a return of a surviving spouse (as
defined in Section 17046) shall be treated as a joint return of a
married couple.

SEC. 75.  

Section 17053.5 of the Revenue and Taxation Code
is amended to read:

17053.5.  

(a) (1) For a qualified renter, there shall be allowed
a credit against his or her “net tax,” as defined in Section 17039.
The amount of the credit shall be as follows:

(A) For married couples filing joint returns, heads of household,
and surviving spouses, as defined in Section 17046, the credit shall
be equal to one hundred twenty dollars ($120) if adjusted gross
income is fifty thousand dollars ($50,000) or less.

(B) For other individuals, the credit shall be equal to sixty dollars
($60) if adjusted gross income is twenty-five thousand dollars
($25,000) or less.

(2) Except as provided in subdivision (b), a married couple shall
receive but one credit under this section. If the spouses file separate
returns, the credit may be taken by either or equally divided
between them, except as follows:

(A) If one spouse was a resident for the entire taxable year and
the other spouse was a nonresident for part or all of the taxable
year, the resident spouse shall be allowed one-half the credit
allowed to married persons and the nonresident spouse shall be
permitted one-half the credit allowed to married persons, prorated
as provided in subdivision (e).

(B) If both spouses were nonresidents for part of the taxable
year, the credit allowed to married persons shall be divided equally
between them subject to the proration provided in subdivision (e).

(b) For a married couple, if each spouse maintained a separate
place of residence and resided in this state during the entire taxable
year, each spouse will be allowed one-half the full credit allowed
to married persons provided in subdivision (a).

(c) For purposes of this section, a “qualified renter” means an
individual who satisfies both of the following:

(1) Was a resident of this state, as defined in Section 17014.

(2) Rented and occupied premises in this state which constituted
his or her principal place of residence during at least 50 percent
of the taxable year.

(d) “Qualified renter” does not include any of the following:

(1) An individual who for more than 50 percent of the taxable
year rented and occupied premises that were exempt from property
taxes, except that an individual, otherwise qualified, is deemed a
qualified renter if he or she or his or her landlord pays possessory
interest taxes, or the owner of those premises makes payments in
lieu of property taxes that are substantially equivalent to property
taxes paid on properties of comparable market value.

(2) An individual whose principal place of residence for more
than 50 percent of the taxable year is with another person who
claimed that individual as a dependent for income tax purposes.

(3) An individual who has been granted or whose spouse has
been granted the homeowners’ property tax exemption during the
taxable year. This paragraph does not apply to an individual whose
spouse has been granted the homeowners’ property tax exemption
if each spouse maintained a separate residence for the entire taxable
year.

(e) An otherwise qualified renter who is a nonresident for any
portion of the taxable year shall claim the credits set forth in
subdivision (a) at the rate of one-twelfth of those credits for each
full month that individual resided within this state during the
taxable year.

(f) A person claiming the credit provided in this section shall,
as part of that claim, and under penalty of perjury, furnish that
information as the Franchise Tax Board prescribes on a form
supplied by the board.

(g) The credit provided in this section shall be claimed on returns
in the form as the Franchise Tax Board may from time to time
prescribe.

(h) For purposes of this section, “premises” means a house or
a dwelling unit used to provide living accommodations in a
building or structure and the land incidental thereto, but does not
include land only, unless the dwelling unit is a mobilehome. The
credit is not allowed for any taxable year for the rental of land
upon which a mobilehome is located if the mobilehome has been
granted a homeowners’ exemption under Section 218 in that year.

(i) This section shall become operative on January 1, 1998, and
applies to any taxable year beginning on or after January 1, 1998.

(j) For each taxable year beginning on or after January 1, 1999,
the Franchise Tax Board shall recompute the adjusted gross income
amounts set forth in subdivision (a). The computation shall be
made as follows:

(1) The Department of Industrial Relations shall transmit
annually to the Franchise Tax Board the percentage change in the
California Consumer Price Index for all items from June of the
prior calendar year to June of the current year, no later than August
1 of the current calendar year.

(2) The Franchise Tax Board shall compute an inflation
adjustment factor by adding 100 percent to the portion of the
percentage change figure which is furnished pursuant to paragraph
(1) and dividing the result by 100.

(3) The Franchise Tax Board shall multiply the amount in
subparagraph (B) of paragraph (1) of subdivision (d) for the
preceding taxable year by the inflation adjustment factor
determined in paragraph (2), and round off the resulting products
to the nearest one dollar ($1).

(4) In computing the amounts pursuant to this subdivision, the
amounts provided in subparagraph (A) of paragraph (1) of
subdivision (a) shall be twice the amount provided in subparagraph
(B) of paragraph (1) of subdivision (a).

SEC. 76.  

Section 17054 of the Revenue and Taxation Code is
amended to read:

17054.  

In the case of individuals, the following credits for
personal exemption may be deducted from the tax imposed under
Section 17041 or 17048, less any increases imposed under
paragraph (1) of subdivision (d) or paragraph (1) of subdivision
(e), or both, of Section 17560.

(a) In the case of a single individual, a head of household, or a
married individual making a separate return, a credit of fifty-two
dollars ($52).

(b) In the case of a surviving spouse (as defined in Section
17046), or a married couple making a joint return, a credit of one
hundred four dollars ($104). If one spouse was a resident for the
entire taxable year and the other spouse was a nonresident for all
or any portion of the taxable year, the personal exemption shall
be divided equally.

(c) In addition to any other credit provided in this section, in
the case of an individual who is 65 years of age or over by the end
of the taxable year, a credit of fifty-two dollars ($52).

(d) (1) A credit of two hundred twenty-seven dollars ($227)
for each dependent (as defined in Section 17056) for whom an
exemption is allowable under Section 151(c) of the Internal
Revenue Code, relating to additional exemption for dependents.
The credit allowed under this subdivision for taxable years
beginning on or after January 1, 1999, shall not be adjusted
pursuant to subdivision (i) for any taxable year beginning before
January 1, 2000.

(2) (A) For taxable years beginning on or after January 1, 2015,
a credit shall not be allowed under paragraph (1) with respect to
any individual unless the identification number, as defined in
Section 6109 of the Internal Revenue Code, of that individual is
included on the return claiming the credit.

(B) A disallowance of a credit due to the omission of a correct
identification number required under this paragraph, may be
assessed by the Franchise Tax Board in the same manner as is
provided by Section 19051 in the case of a mathematical error
appearing on the return. A claimant shall have the right to claim
a credit or refund of adjusted amounts within the period provided
in Section 19306, 19307, 19308, or 19311, whichever period
expires later.

(3) (A) For taxable years beginning on or after January 1, 2009,
the credit allowed under paragraph (1) for each dependent shall
be equal to the credit allowed under subdivision (a). This
subparagraph shall cease to be operative for taxable years beginning
on or after January 1, 2011, unless the Director of Finance makes
the notification pursuant to Section 99040 of the Government
Code, in which case this subparagraph shall cease to be operative
for taxable years beginning on or after January 1, 2013.

(B) For taxable years that subparagraph (A) ceases to be
operative, the credit allowed under paragraph (1) for each
dependent shall be equal to the amount that would be allowed if
subparagraph (A) had never been operative.

(e) A credit for personal exemption of fifty-two dollars ($52)
for the taxpayer if he or she is blind at the end of his or her taxable
year.

(f) A credit for personal exemption of fifty-two dollars ($52)
for the spouse of the taxpayer if a separate return is made by the
taxpayer, and if the spouse is blind and, for the calendar year in
which the taxable year of the taxpayer begins, has no gross income
and is not the dependent of another taxpayer.

(g) For the purposes of this section, an individual is blind only
if either (1) his or her central visual acuity does not exceed 20/200
in the better eye with correcting lenses, or (2) his or her visual
acuity is greater than 20/200 but is accompanied by a limitation
in the fields of vision such that the widest diameter of the visual
field subtends an angle no greater than 20 degrees.

(h) In the case of an individual with respect to whom a credit
under this section is allowable to another taxpayer for a taxable
year beginning in the calendar year in which the individual’s
taxable year begins, the credit amount applicable to that individual
for that individual’s taxable year is zero.

(i) For each taxable year beginning on or after January 1, 1989,
the Franchise Tax Board shall compute the credits prescribed in
this section. That computation shall be made as follows:

(1) The California Department of Industrial Relations shall
transmit annually to the Franchise Tax Board the percentage change
in the California Consumer Price Index for all items from June of
the prior calendar year to June of the current calendar year, no
later than August 1 of the current calendar year.

(2) The Franchise Tax Board shall add 100 percent to the
percentage change figure which is furnished to them pursuant to
paragraph (1), and divide the result by 100.

(3) The Franchise Tax Board shall multiply the immediately
preceding taxable year credits by the inflation adjustment factor
determined in paragraph (2), and round off the resulting products
to the nearest one dollar ($1).

(4) In computing the credits pursuant to this subdivision, the
credit provided in subdivision (b) shall be twice the credit provided
in subdivision (a).

SEC. 77.  

Section 17077 of the Revenue and Taxation Code is
amended to read:

17077.  

Section 68 of the Internal Revenue Code, relating to
overall limitation on itemized deductions, shall apply, except as
otherwise provided.

(a) “Six percent” shall be substituted for “3 percent” in Section
68(a)(1) of the Internal Revenue Code.

(b) Section 68(b)(1) of the Internal Revenue Code shall not
apply and in lieu thereof the term “applicable amount” in each
place it appears in Section 68(a) of the Internal Revenue Code
means one hundred thousand dollars ($100,000) in the case of a
single individual or a married individual filing a separate return,
one hundred fifty thousand dollars ($150,000) in the case of a head
of household, and two hundred thousand dollars ($200,000) in the
case of a surviving spouse or a married couple filing a joint return.

(c) Section 68(b)(2) of the Internal Revenue Code, relating to
inflation adjustments, shall not apply. However, for any taxable
year beginning on or after January 1, 1992, the applicable amounts
specified in subdivision (b) shall be recomputed annually in the
same manner as the recomputation of income tax brackets under
subdivision (h) of Section 17041.

(d) Section 68(f) of the Internal Revenue Code, relating to
phaseout of limitation, shall not apply.

(e) Section 68(g) of the Internal Revenue Code, relating to
termination, shall not apply.

SEC. 78.  

Section 17555 of the Revenue and Taxation Code is
amended to read:

17555.  

In any case where spouses file separate returns, the
Franchise Tax Board may distribute, apportion, or allocate gross
income between the spouses, if it is determined that such
distribution, apportionment, or allocation is necessary in order to
reflect the proper income of the spouses.

SEC. 79.  

Section 18501 of the Revenue and Taxation Code is
amended to read:

18501.  

(a) Every individual taxable under Part 10
(commencing with Section 17001) shall make a return to the
Franchise Tax Board, stating specifically the items of the
individual’s gross income from all sources and the deductions and
credits allowable, if the individual has any of the following for the
taxable year:

(1) An adjusted gross income from all sources in excess of eight
thousand dollars ($8,000), if single.

(2) An adjusted gross income from all sources in excess of
sixteen thousand dollars ($16,000), if married.

(3) A gross income from all sources in excess of ten thousand
dollars ($10,000), if single, and twenty thousand dollars ($20,000),
if married, regardless of the amount of adjusted gross income.

(4) In the case of an individual described in Section 63(c)(5) of
the Internal Revenue Code, relating to limitation on basic standard
deduction in the case of certain dependents, a gross income from
all sources that exceeds the amount of the standard deduction
allowed under that section.

(b) If a married couple has for the taxable year an adjusted gross
income from all sources in excess of sixteen thousand dollars
($16,000) or a gross income from all sources in excess of twenty
thousand dollars ($20,000), each spouse shall make a return or the
income of each shall be included on a single joint return as
otherwise provided in this article.

(c) For any individual described in paragraph (1) or (2), the
Franchise Tax Board shall recompute the amounts provided in
subdivision (b) and paragraphs (1) to (3), inclusive, of subdivision
(a) as follows:

(1) For any individual eligible to claim the credit described in
subdivision (c) of Section 17054, the Franchise Tax Board shall
increase the income amounts described in subdivision (b) and
paragraphs (1) to (3), inclusive, of subdivision (a), as adjusted by
subdivision (d), by the quotient provided by dividing the credit
described in subdivision (c) of Section 17054, as adjusted in
subdivision (i) of Section 17054, by 2 percent.

(2) For any individual or married couple eligible to claim the
credit described in subdivision (d) of Section 17054, the Franchise
Tax Board shall increase the income amounts described in
subdivision (b) or paragraphs (1) to (3), inclusive, of subdivision
(a), as adjusted by subdivision (d), by the quotient provided by
dividing each credit described in subdivision (d) of Section 17054,
as adjusted in subdivision (i) of Section 17054, by the following:

(A) If the individual or married couple is not eligible to claim
the credit allowed in subdivision (c) of Section 17054, 3 percent
for the first dependent credit and 4 percent for the second dependent
credit, if any.

(B) If the individual or married couple is eligible to claim the
credit allowed in subdivision (c) of Section 17054, 4 percent for
the first dependent credit and 5 percent for the second dependent
credit, if any.

(d) For each taxable year beginning on or after January 1, 1996,
the Franchise Tax Board shall recompute the income amounts
prescribed in paragraphs (1) to (3), inclusive, of subdivision (a)
and in subdivision (b), as follows:

(1) The Department of Industrial Relations shall transmit
annually to the Franchise Tax Board the percentage change in the
California Consumer Price Index for all items from June of the
prior calendar year to June of the current calendar year, no later
than August 1 of the current calendar year.

(2) The Franchise Tax Board shall do both of the following:

(A) Compute an inflation adjustment factor by adding 100
percent to the percentage change figure that is furnished pursuant
to paragraph (1) and dividing the result by 100.

(B) Multiply the income amounts for the preceding taxable year
by the inflation adjustment factor determined in subparagraph (A)
and round off the resulting products to the nearest one dollar ($1).

(e) The changes to subdivision (c) made by the act adding this
subdivision shall apply to each taxable year beginning on or after
January 1, 1999.

SEC. 80.  

Section 18522 of the Revenue and Taxation Code is
amended to read:

18522.  

If an individual has filed a separate return for a taxable
year for which a joint return could have been made by him or her
and his or her spouse under Section 18521, and the time prescribed
for filing the return for that taxable year has expired, that individual
and his or her spouse may nevertheless make a joint return for that
taxable year, provided a joint federal income tax return is made
under the provisions of Section 6013(b) of the Internal Revenue
Code. A joint return filed by the married couple in that case shall
constitute the return of the married couple for that taxable year,
and all payments, credits, refunds, or other repayments made or
allowed with respect to the separate return of either spouse for that
taxable year shall be taken into account in determining the extent
to which the tax based upon the joint return has been paid.

SEC. 81.  

Section 18530 of the Revenue and Taxation Code is
amended to read:

18530.  

Where the amount shown as the tax by the married
couple on a joint return made under Section 18522 exceeds the
aggregate of the amounts shown as the tax upon the separate return
of each spouse, each of the following shall apply:

(a) If any part of the excess is attributable to negligence or
intentional disregard of rules and regulations (but without intent
to defraud) at the time of the making of the separate return, then
20 percent of the total amount of the excess shall be assessed,
collected, and paid, in lieu of the 20 percent addition to the tax
provided in subdivision (a) of Section 19164.

(b) If any part of the excess is attributable to fraud with intent
to evade tax at the time of the making of the separate return, then
75 percent of the total amount of the excess shall be assessed,
collected, and paid, in lieu of the 75 percent addition to the tax
provided in subdivision (b) of Section 19164.

SEC. 82.  

Section 18531.5 of the Revenue and Taxation Code
is amended to read:

18531.5.  

For purposes of Section 443 of the Internal Revenue
Code, where the spouses have different taxable years because of
the death of either spouse, the joint return shall be treated as if the
taxable years of both spouses ended on the date of the closing of
the surviving spouse’s taxable year.

SEC. 83.  

Section 18532 of the Revenue and Taxation Code is
amended to read:

18532.  

For the purposes of this article, each of the following
shall apply:

(a) The status as married of two individuals having taxable years
beginning on the same day shall be determined as follows:

(1) If both have the same taxable year, then as of the close of
that year.

(2) If one dies before the close of the taxable year of the other,
then as of the time of the death.

(b) An individual who is legally separated from his or her spouse
under a decree of divorce or of separate maintenance shall not be
considered as married.

(c) If a joint return is made, the tax shall be computed on the
aggregate income and the liability with respect to the tax shall be
joint and several.

SEC. 84.  

Section 19006 of the Revenue and Taxation Code is
amended to read:

19006.  

(a) The spouse who controls the disposition of or who
receives or spends community income as well as the spouse who
is taxable on the income is liable for the payment of the taxes
imposed by Part 10 (commencing with Section 17001) on that
income.

(b) Whenever a joint return is filed by a married couple, the
liability for the tax on the aggregate income is joint and several.
The liability may be revised by a court in a proceeding for
dissolution of the marriage of the married couple, provided:

(1) The order revising tax liability may not relieve a spouse of
tax liability on income earned by or subject to the exclusive
management and control of the spouse. The liability of the spouse
for the tax, penalties, and interest due for the taxable year shall be
in the same ratio to total tax, penalties, and interest due for the
taxable year as the income earned by or subject to the management
and control of the spouse is to total gross income reportable on the
return.

(2) The order revising tax liability:

(A) Must separately state the income tax liabilities for the
taxable years for which revision of tax liability is granted.

(B) Shall not revise a tax liability that has been fully paid prior
to the effective date of the order; however, any unpaid amount
may be revised.

(C) Shall become effective when the Franchise Tax Board is
served with or acknowledges receipt of the order.

(D) Shall not be effective if the gross income reportable on the
return exceeds one hundred fifty thousand dollars ($150,000) or
the amount of tax liability the spouse is relieved of exceeds seven
thousand five hundred dollars ($7,500), unless a tax revision
clearance certificate is obtained from the Franchise Tax Board and
filed with the court.

(c) Notwithstanding subdivisions (a) and (b), whenever a joint
return is filed by a married couple and the tax liability is not fully
paid, that liability, including interest and penalties, may be revised
by the Franchise Tax Board as to one spouse.

(1) However, the liability shall not be revised:

(A) To relieve a spouse of tax liability on income earned by or
subject to the exclusive management and control of the spouse.
The liability of the spouse for the tax, penalties, and interest due
for the taxable year shall be in the same ratio to total tax, penalties,
and interest due for the taxable year as the income earned by or
subject to the management and control of the spouse is to total
gross income reportable on the return.

(B) To relieve a spouse of liability below the amount actually
paid on the liability prior to the granting of relief, including credit
from any other taxable year available for application to the liability.

(2) The liability may be revised only if the spouse whose liability
is to be revised establishes that he or she did not know of, and had
no reason to know of, the nonpayment at the time the return was
filed. For purposes of this paragraph, “reason to know” means
whether or not a reasonably prudent person would have had reason
to know of the nonpayment.

(3) For purposes of this section, the determination of the spouse
to whom items of gross income are attributable shall be made
without regard to community property laws.

(4) The determination of the Franchise Tax Board as to whether
the liability is to be revised as to one spouse shall be made not less
than 30 days after notification of the other spouse and shall be
based upon whether, under all of the facts and circumstances
surrounding the nonpayment, it would be inequitable to hold the
spouse requesting revision liable for the nonpayment. Any action
taken under this section shall be treated as though it were action
on a protest taken under Section 19044 and shall become final
upon the expiration of 30 days from the date that notice of the
action is mailed to both spouses, unless, within that 30-day period,
one or both spouses appeal the determination to the board as
provided in Section 19045.

(5) This subdivision shall apply to all taxable years subject to
the provisions of this part, but shall not apply to any taxable year
which has been closed by a statute of limitations, res judicata, or
otherwise.

SEC. 85.  

Section 19035 of the Revenue and Taxation Code is
amended to read:

19035.  

In the case of a joint return filed by a married couple,
the notice of proposed deficiency assessment may be a single joint
notice, except that if the Franchise Tax Board is notified by either
spouse that separate residences have been established, it shall mail
to each spouse, in lieu of the single joint notice, duplicate originals
of the joint notice.

SEC. 86.  

Section 19107 of the Revenue and Taxation Code is
amended to read:

19107.  

Where an overpayment is made by any individual for
any year, and a deficiency is owing from the spouse of the taxpayer
for the same year, and both spouses notify the Franchise Tax Board
in writing prior to the expiration of the time within which credit
for the overpayment may be allowed that the overpayment may
be credited against the deficiency, no interest shall be assessed on
that portion of the deficiency as is extinguished by the credit for
the period of time subsequent to the date the overpayment was
made.

SEC. 87.  

Section 19110 of the Revenue and Taxation Code is
amended to read:

19110.  

(a) When the correction of an erroneous inclusion or
deduction of an item or items in the computation of income of a
trust, estate, parent, or spouse for any year results in an
overpayment for that year by the trust, estate, parent, or spouse,
and also results in a deficiency for the same year for a grantor of
the trust or beneficiary of the estate or trust, or child of the parent,
or spouse of the child, or the spouse of the spouse, the
overpayment, if the period within which credit for the overpayment
may be allowed has not expired, shall be credited on the deficiency,
if the period within which the deficiency may be proposed has not
expired, and the balance, if any, shall be credited or refunded. No
interest shall be assessed on the portion of the deficiency as is
extinguished by the credit for the period of time subsequent to the
date the overpayment was made.

(b) When the correction of an erroneous inclusion or deduction
of an item or items in the computation of income of a grantor of
a trust, beneficiary of an estate or trust, a child, or spouse of the
child, or a spouse for any year results in an overpayment for that
year by the grantor, beneficiary, child, or spouse, and also results
in a deficiency for the same year for the grantor’s or beneficiary’s
trust, the beneficiary’s estate, the child’s parent, or spouse of the
child, or the beneficiary’s spouse, the overpayment, if the period
within which credit for the overpayment may be allowed has not
expired, shall be credited on the deficiency, if the period within
which the deficiency may be proposed has not expired, and the
balance, if any, shall be credited or refunded. No interest shall be
assessed on the portion of the deficiency as is extinguished by the
credit for the period of time subsequent to the date the overpayment
was made.

(c) Subdivisions (a) and (b) are not intended, nor shall they be
construed as a limitation on the Franchise Tax Board’s right to
offset or recoup barred assessments against overpayments.

SEC. 88.  

Section 19701.5 of the Revenue and Taxation Code
is amended to read:

19701.5.  

(a) Any person who signs his or her spouse’s name
on any income tax return, or any schedules or attachments thereto,
or who files electronically pursuant to Section 18621.5, without
the consent of the spouse as provided in subdivision (b), is guilty
of a misdemeanor and shall upon conviction be fined an amount
not to exceed five thousand dollars ($5,000) or be imprisoned for
a term not to exceed one year, or both, at the discretion of the court,
together with costs of investigation and prosecution.

(b) Notwithstanding subdivision (a), any person who signs his
or her spouse’s name shall not be guilty of a misdemeanor when
one spouse is physically unable by reason of disease or injury to
sign a joint return, and the other spouse, with the oral consent of
the one who is incapacitated, signs the incapacitated spouse’s name
in the proper place on the return followed by the words “By ____,
Spouse (or Husband or Wife),” and by the signature of the signing
spouse in his or her own right, provided that a dated statement
signed by the spouse who is signing the return is attached to and
made a part of the return stating each of the following:

(1) The name of the return being filed.

(2) The taxable year.

(3) The reason for the inability of the spouse who is
incapacitated to sign the return.

(4) That the spouse who is incapacitated consented to the signing
of the return and that the taxpayer and his or her agent, if any, are
responsible for the return as made and incur liability for the
penalties provided for erroneous, false, or fraudulent returns.

(c) The penalties provided by this section are cumulative and
shall not be construed as restricting any other penalty provided by
law based upon the same facts, including any penalty under Section
470 of the Penal Code. However, an act or omission which is made
punishable in different ways by this section and different provisions
of the Penal Code shall not be punished under more than one
provision.

SEC. 89.  

Section 20542 of the Revenue and Taxation Code is
amended to read:

20542.  

(a) The Franchise Tax Board, pursuant to the provisions
of Article 3 (commencing with Section 20561), of this chapter,
shall provide assistance to the claimant based on a percentage of
the property tax accrued and paid by the claimant on the residential
dwelling as provided in Section 20543 or the statutory property
tax equivalent pursuant to Section 20544. In case of an
owner-claimant, the assistance shall be equal to the applicable
percentage of property taxes paid on the full value of the residential
dwelling up to, and including, thirty-four thousand dollars
($34,000). No assistance shall be allowed for property taxes paid
on that portion of full value of a residential dwelling exceeding
thirty-four thousand dollars ($34,000). No assistance shall be
provided if the amount of the assistance claim is five dollars ($5)
or less.

(b) For purposes of allowing assistance provided for by this
section:

(1) (A) Only one owner-claimant from one household each
year shall be entitled to assistance under this chapter. When two
or more individuals of a household are able to meet the
qualifications for an owner-claimant, they may determine who the
owner-claimant shall be. If they are unable to agree, the matter
shall be referred to the Franchise Tax Board and its decision shall
be final.

(B) When two or more individuals pay rent for the same
premises and each individual meets the qualifications for a
renter-claimant, each qualified individual shall be entitled to
assistance under this part.

For the purposes of this subparagraph, spouses residing in the
same premises shall be presumed to be one renter.

(2) Except as provided in paragraph (3), the right to file a claim
shall be personal to the claimant and shall not survive his or her
death; however, when a claimant dies after having filed a timely
claim, the amount thereof may be disbursed to the surviving spouse
and, if no surviving spouse, to any other member of the household
who is a qualified claimant. If there is no surviving spouse or
otherwise qualified claimant, the claim shall be disbursed to any
other member of the household. In the event two or more
individuals qualify for payment as either an otherwise qualified
claimant or a member of the household, they may determine which
of them will be paid. If they are unable to agree, the matter shall
be referred to the Franchise Tax Board and its decision shall be
final.

(3) If, after January 1 of the property tax fiscal year for which
a claim may be filed, a claimant dies without filing a timely claim,
a claim on behalf of such claimant may be filed by the surviving
spouse within the filing period prescribed in subdivision (a) or (b)
of Section 20563.

(4) If an individual postponed taxes for any given property tax
fiscal year under Chapter 2 (commencing with Section 20581),
Chapter 3 (commencing with Section 20625), Chapter 3.3
(commencing with Section 20639), or Chapter 3.5 (commencing
with Section 20640), then any claim for assistance under this
chapter for the same property tax fiscal year shall be filed by such
individual (assuming all other eligibility requirements in this
chapter are satisfied) and not an otherwise qualified member of
the individual’s household.

SEC. 90.  

Section 2804 of the Streets and Highways Code is
amended to read:

2804.  

(a) This division does not apply to irrigation districts,
irrigation district improvement districts, fire districts, fire protection
districts, or public cemetery districts, or to any proceeding
otherwise subject to this division when one or more of the
following situations exist:

(1) The proceedings are undertaken by a district or public
corporation within one year of its incorporation.

(2) The improvement proceedings are by a chartered city,
chartered county, or a county sanitation district which is governed
ex officio by the board of supervisors of a chartered county, and
the city, county, or district has complied with Section 19 of Article
XVI of the California Constitution.

(3) All of the owners of more than 60 percent in area of the
property subject to assessment for the proposed improvements
have signed and filed with the clerk or secretary of the legislative
body undertaking the proceedings a written petition for the
improvements meeting the requirements of Section 2804.5.

(b) As used in this section, “substantially described” means that
additional improvements of the same or similar nature may not be
provided unless the estimated cost of the improvements does not
exceed 10 percent of the estimated cost of the improvements
provided in the former report.

(c) As used in this section, “owner of land” means only a person
who, at the time the petition is filed with the clerk or secretary of
the legislative body, appears to be the owner upon the assessor’s
roll or, in the case of transfers of land, or parts thereof, subsequent
to the date upon which the last assessor’s roll was prepared, appear
to be the owner on the records in the county assessor’s office which
the county assessor will use to prepare the next assessor’s roll. If
any person signing the petition appears on the assessor’s roll or
the records in the county assessor’s office as an owner of property
as a joint tenant or tenant in common, or as a spouse, that property
shall be counted as if all those persons had signed the petition.

SEC. 91.  

Section 13003 of the Unemployment Insurance Code
is amended to read:

13003.  

(a) Except where the context otherwise requires, the
definitions set forth in this chapter, and in addition the definitions
and provisions of the Personal Income Tax Law referred to and
hereby incorporated by reference as set forth in the following
provisions of the Revenue and Taxation Code, shall apply to and
govern the construction of this division:

(1) “Corporation” as defined by Section 17009.

(2) “Fiduciary” as defined by Section 17006.

(3) “Fiscal year” as defined by Section 17011.

(4) “Foreign country” as defined by Section 17019.

(5) “Franchise Tax Board” as defined by Section 17003.

(6) “Spouse” as defined by Section 17021.

(7) “Individual” as defined by Section 17005.

(8) “Military or naval forces” as defined by Section 17022.

(9) “Nonresident” as defined by Section 17015.

(10) “Partnership” as defined by Section 17008.

(11) “Person” as defined by Section 17007.

(12) “Resident” as defined by Sections 17014 and 17016.

(13) “State” as defined by Section 17018.

(14) “Taxable year” as defined by Section 17010.

(15) “Taxpayer” as defined by Section 17004.

(16) “Trade or business” as defined by Section 17020.

(17) “United States” as defined by Section 17017.

(b) The provisions of Part 10 (commencing with Section 17001)
and Part 10.2 (commencing with Section 18401) of Division 2 of
the Revenue and Taxation Code, relating to the following items,
are hereby incorporated by reference and shall apply to and govern
construction of this division:

(1) Trade or business expense (Article 6 (commencing with
Section 17201) of Chapter 3 of Part 10).

(2) Deductions for retirement savings (Article 6 (commencing
with Section 17201) of Chapter 3 of Part 10).

(3) Distributions of property by a corporation to a shareholder
(Chapter 4 (commencing with Section 17321) of Part 10).

(4) Deferred compensation (Chapter 5 (commencing with
Section 17501) of Part 10).

(5) Partners and partnerships (Chapter 10 (commencing with
Section 17851) of Part 10).

(6) Gross income of nonresident taxpayers (Chapter 11
(commencing with Section 17951) of Part 10).

(7) Postponement of the time for certain acts by individuals in
or in support of the armed forces (Article 3 (commencing with
Section 18621) of Chapter 2 of Part 10.2).

(8) Disclosure of information (Article 2 (commencing with
Section 19542) of Chapter 7 of Part 10.2). For this purpose
“Franchise Tax Board” as used therein shall mean the Employment
Development Department in respect to information obtained in
the administration of this division.

SEC. 92.  

Section 742.16 of the Welfare and Institutions Code
is amended to read:

742.16.  

(a) If a minor is found to be a person described in
Section 602 by reason of the commission of an act prohibited by
Section 594, 594.3, 594.4, 640.5, 640.6, or 640.7 of the Penal
Code, and the court does not remove the minor from the physical
custody of the parent or guardian, the court as a condition of
probation, except in any case in which the court makes a finding
and states on the record its reasons why that condition would be
inappropriate, shall require the minor to wash, paint, repair, or
replace the property defaced, damaged, or destroyed by the minor
or otherwise pay restitution to the probation officer of the county
for disbursement to the owner or possessor of the property or both.
In any case in which the minor is not granted probation or in which
the minor’s cleanup, repair, or replacement of the property will
not return the property to its condition before it was defaced,
damaged, or destroyed, the court shall make a finding of the
amount of restitution that would be required to fully compensate
the owner and possessor of the property for their damages. The
court shall order the minor or the minor’s estate to pay that
restitution to the probation officer of the county for disbursement
to the owner or possessor of the property or both, to the extent the
court determines that the minor or the minor’s estate have the
ability to do so, except in any case in which the court makes a
finding and states on the record its reasons why full restitution
would be inappropriate. If full restitution is found to be
inappropriate, the court shall require the minor to perform specified
community service, except in any case in which the court makes
a finding and states on the record its reasons why that condition
would be inappropriate.

(b) If a minor is found to be a person described in Section 602
by reason of the commission of an act prohibited by Section 594,
594.3, 594.4, 640.5, 640.6, or 640.7 of the Penal Code, and the
graffiti or other material inscribed by the minor has been removed,
or the property defaced by the minor has been repaired or replaced
by a public entity that has elected, pursuant to Section 742.14, to
have the probation officer of the county recoup its costs through
proceedings in accordance with this section and has made cost
findings in accordance with subdivision (c) or (d) of Section
742.14, the court shall determine the total cost incurred by the
public entity for said removal, repair, or replacement, using, if
applicable, the cost findings most recently adopted by the public
entity pursuant to subdivision (c) or (d) of Section 742.14. The
court shall order the minor or the minor’s estate to pay those costs
to the probation officer of the county to the extent the court
determines that the minor or the minor’s estate have the ability to
do so.

(c) If the minor is found to be a person described in Section 602
by reason of the commission of an act prohibited by Section 594,
594.3, 594.4, 640.5, 640.6, or 640.7 of the Penal Code, and the
minor was identified or apprehended by the law enforcement
agency of a city or county that has elected, pursuant to Section
742.14, to have the probation officer of the county recoup its costs
through proceedings in accordance with this section, the court shall
determine the cost of identifying or apprehending the minor, or
both, using, if applicable, the cost findings adopted by the city or
county pursuant to subdivision (b) of Section 742.14. The court
shall order the minor or the minor’s estate to pay those costs to
the probation officer of the county to the extent the court
determines that the minor or the minor’s estate has the ability to
do so.

(d) If the court determines that the minor or the minor’s estate
is unable to pay in full the costs and damages determined pursuant
to subdivisions (a), (b), and (c), and if the minor’s parent or parents
have been cited into court pursuant to Section 742.18, the court
shall hold a hearing to determine the liability of the minor’s parent
or parents pursuant to Section 1714.1 of the Civil Code for those
costs and damages. Except when the court makes a finding setting
forth unusual circumstances in which parental liability would not
serve the interests of justice, the court shall order the minor’s parent
or parents to pay those costs and damages to the probation officer
of the county to the extent the court determines that the parent or
parents have the ability to pay, if the minor was in the custody or
control of the parent or parents at the time he or she committed
the act that forms the basis for the finding that the minor is a person
described in Section 602. In evaluating the parent’s or parents’
ability to pay, the court shall take into consideration the family
income, the necessary obligations of the family, and the number
of persons dependent upon this income.

(e) The hearing described in subdivision (d) may be held
immediately following the disposition hearing or at a later date,
at the option of the court.

(f) If the amount of costs and damages sought to be recovered
in the hearing pursuant to subdivision (d) is five thousand dollars
($5,000) or less, the parent or parents may not be represented by
counsel and the probation officer of the county shall be represented
by his or her nonattorney designee. The court shall conduct that
hearing in accordance with Sections 116.510 and 116.520 of the
Code of Civil Procedure. Notwithstanding the foregoing, if the
court determines that a parent cannot properly present his or her
defense, the court may, in its discretion, allow another individual
to assist that parent. In addition, a spouse may appear and
participate in the hearing on behalf of his or her spouse if the
representative’s spouse has given his or her consent and the court
determines that the interest of justice would be served thereby.

(g) If the amount of costs and damages sought to be recovered
in the hearing pursuant to subdivision (d) exceeds five thousand
dollars ($5,000), the parent or parents may be represented by
counsel of his or her or their own choosing, and the probation
officer of the county shall be represented by the district attorney
or an attorney or nonattorney designee of the probation officer.
The parent or parents shall not be entitled to court-appointed
counsel or to counsel compensated at public expense.

(h) At the hearing conducted pursuant to subdivision (d), there
shall be a presumption affecting the burden of proof that the
findings of the court made pursuant to subdivisions (a), (b), and
(c) represent the actual damages and costs attributable to the act
of the minor that forms the basis of the finding that the minor is a
person described in Section 602.

(i) If the parent or parents, after having been cited to appear
pursuant to Section 742.18, fail to appear as ordered, the court
shall order the parent or parents to pay the full amount of the costs
and damages determined by the court pursuant to subdivisions (a),
(b), and (c).

(j) Execution may be issued on an order issued by the court
pursuant to this section in the same manner as on a judgment in a
civil action, including any balance unpaid at the termination of the
court’s jurisdiction over the minor.

(k) At any time prior to the satisfaction of a judgment entered
pursuant to this section, a person against whom the judgment was
entered may petition the rendering court to modify or vacate the
judgment on the showing of a change in circumstances relating to
his or her ability to pay the judgment.

(l) For purposes of a hearing conducted pursuant to subdivision
(d), the judge of the juvenile court shall have the jurisdiction of a
judge of the superior court in a limited civil case, and if the amount
of the demand is within the jurisdictional limits stated in Sections
116.220 and 116.221 of the Code of Civil Procedure, the judge of
the juvenile court shall have the powers of a judge presiding over
the small claims court.

(m) Nothing in this section shall be construed to limit the
authority of a juvenile court to provide conditions of probation.

(n) The options available to the court pursuant to subdivisions
(a), (b), (c), (d), and (k), to order payment by the minor and his or
her parent or parents of less than the full costs described in
subdivisions (a), (b), and (c), on grounds of financial inability or
for reasons of justice, shall not be available to a superior court in
an ordinary civil proceeding pursuant to subdivision (b) of Section
1714.1 of the Civil Code, except that in any proceeding pursuant
to either subdivision (b) of Section 1714.1 of the Civil Code or
this section, the maximum amount that a parent or a minor may
be ordered to pay shall not exceed twenty thousand dollars
($20,000) for each tort of the minor.

SEC. 93.  

Section 7275 of the Welfare and Institutions Code is
amended to read:

7275.  

(a) The spouse, father, mother, or children of a patient
in a state hospital, the estates of these persons, and the guardian
or conservator and administrator of the estate of the patient shall
cause him or her to be properly and suitably cared for and
maintained, and shall pay the costs and charges for transportation
to a state institution. The spouse, father, mother, or children of a
patient in a state hospital and the administrators of their estates,
and the estate of the person shall be liable for his or her care,
support, and maintenance in a state institution of which he or she
is a patient. The liability of these persons and estates shall be a
joint and several liability, and the liability shall exist whether the
person has become a patient of a state institution pursuant to the
provisions of this code or pursuant to the provisions of Sections
1026, 1368, 1369, 1370, and 1372 of the Penal Code.

(b) This section does not impose liability for the care of persons
with intellectual disabilities in state hospitals.

SEC. 94.  

Section 12003 of the Welfare and Institutions Code
is amended to read:

12003.  

For the purposes of this chapter, neither the residence
nor domicile of the spouse shall be deemed the residence or
domicile of the other, but each may have a separate residence or
domicile dependent upon proof of the fact and not on legal
presumption.

For the purposes of this chapter, a minor child shall be deemed
to have resided in the state during any period in which such child
has been physically present in the state.

SEC. 95.  

Section 14140 of the Welfare and Institutions Code
is amended to read:

14140.  

The following definitions shall apply to the provisions
of this article:

(a) “Net worth” means:

(1) Personal property, which consists of cash, savings accounts,
securities, and similar items; notes, mortgages, and deeds of trust;
the cash surrender value of life insurance on the life of the applicant
or beneficiary, on the life of the spouse or any member of the
family, except as provided in Section 11158; motor vehicles, except
one which meets the transportation needs of the person or family;
any other property or equity other than real estate, except that
property specified in subdivisions (1), (2) and (3) of Section 11155.

(2) Real property, including any interest in land of more than
nominal interest which does not constitute the home of the
applicant for aid under this chapter. The home of the applicant
shall be exempt from consideration as net worth under this section
to the extent of ten thousand dollars ($10,000) in assessed
valuation, as assessed by the county assessor.

(3) “Income” which consists of the sum of adjusted gross income
as used for purposes of the Federal Income Tax Law.

(b) “Family unit” means:

(1) In the case of an unmarried patient under 21 years of age
living with his or her parent or parents, the patient and his or her
parents.

(2) In the case of a married patient under 21 years of age, the
patient and his or her spouse.

(3) In the case of a patient over 21, the patient, and if married,
the patient’s spouse.

SEC. 96.  

Section 18291 of the Welfare and Institutions Code
is amended to read:

18291.  

For purposes of this chapter:

(a) “Domestic violence” means abuse committed against an
adult or a minor who is a spouse, former spouse, cohabitant, former
cohabitant, or person with whom the suspect has had a child or is
having or has had a dating or engagement relationship.

(b) “Cohabitant” means two unrelated adult persons living
together for a substantial period of time, resulting in some
permanency of relationship. Factors that may determine whether
persons are cohabiting include, but are not limited to, all of the
following:

(1) Sexual relations between the parties while sharing the same
living quarters.

(2) Sharing of income or expenses.

(3) Joint use or ownership of property.

(4) Whether the parties hold themselves out as spouses.

(5) The continuity of the relationship.

(6) The length of the relationship.

(c) “Domestic violence shelter” means a shelter for domestic
violence victims that meets all of the following requirements:

(1) Provides shelter in an undisclosed and secured location.

(2) Provides staff that meet the requirements set forth in Section
1037.1 of the Evidence Code.

(3) Meets the requirements set forth in Section 18294.

(d) “Undisclosed” means a location that is not advertised or
publicized.

end delete