Amended in Assembly August 20, 2015

Amended in Assembly June 25, 2015

Amended in Senate April 20, 2015

Senate Bill No. 799

Introduced by begin delete Committee on Business, Professions and Economic Development (Senators Hill (Chair), Bates, Berryhill, Block, Galgiani, Hernandez, Jackson, Mendoza, and Wieckowski) end delete begin insert Senators Hill and Glazer end insert

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(Coauthors: Senators Allen, Block, Galgiani, Pavley, Roth, and Wolk)

end insert begin insert

(Coauthors: Assembly Members Bonilla, Brown, Calderon, Cooper, Gray, Irwin, Olsen, Salas, and Ting)

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March 18, 2015

begin delete An act to amend Sections 5055, 5070.1, 5087, 6735, 7083, 7200, 7200.5, 7200.7, 7201, 7202, 7208, 7209, 7209.5, 7210.5, 7211.1, 7211.2, 7215, 7215.5, 7217, 7685, 7818, 8508, 8513, 8552, 8611, and 17913 of, and to repeal Section 8516.5 of, the Business and Professions Code, and to amend Section 13995.40 of the Government Code, relating to business and professions. end delete begin insert An act to amend Sections 42127 and 42127.01 of the Education Code, relating to school finance. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 799, as amended, begin delete Committee on Business, Professions and Economic Development end delete   begin insert Hill end insert . begin delete Business and professions. end delete begin insert School finance: school districts: annual budgets: reserve balance. end insert

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Existing law requires the governing board of a school district, on or before July 1 of each year, to hold a hearing on, and adopt a budget for, the subsequent fiscal year. Existing law requires the governing board of a school district that proposes to adopt a budget that includes a combined assigned and unassigned ending fund balance in excess of the minimum recommended reserve for economic uncertainties adopted by the State Board of Education to provide specified information for public review and discussion.

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This bill would instead require the governing board of a school district that proposes to adopt a budget that includes unassigned ending balances in the school district’s general fund and special reserve fund for other than capital outlay projects in excess of the minimum recommended reserve for economic uncertainties to provide specified information for public review and discussion. The bill would also require the governing board of a school district to adopt a policy establishing procedures for reporting the fund balances as reflected in the school district’s governmental fund financial statements, as specified. By imposing additional duties on school districts, the bill would impose a state-mandated local program.

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Existing law limits the amount of the combined assigned or unassigned ending fund balance contained in a school district’s annual budget in any fiscal year immediately after a fiscal year in which a transfer is made into the Public School System Stabilization Account. Existing law establishes formulas for calculating the maximum amount allowable for school districts with less than 400,000 units of average daily attendance and for school districts with more than 400,000 units of average daily attendance, as specified. Existing law authorizes the county superintendent of schools to grant an exemption from those requirements if the school district provides documentation indicating extraordinary fiscal circumstances substantiate the need for a combined assigned or unassigned ending fund balance that is in excess of the minimum recommended reserve for economic uncertainties, as specified.

end insert begin insert

This bill would instead provide that the school district’s budget shall not contain unassigned ending balances in the school district’s general fund and special reserve fund for other than capital outlay projects in excess of 17% of those funds, and would require a county superintendent of schools to grant a school district an exemption if the school district provides documentation indicating extraordinary fiscal circumstances substantiate the need for those fund balances, as specified. The bill would also require each county superintendent of schools to adopt a policy establishing the procedures for submitting exemption requests and the criteria to be used to determine whether extraordinary fiscal circumstances exist.

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Because the bill would impose additional duties on school districts and county superintendents of schools, the bill would impose a state-mandated local program.

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

end insert begin insert

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

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(1) Existing law provides for the practice of accountancy by the California Board of Accountancy. Existing law, until January 1, 2019, authorizes an individual whose principal place of business is not in this state and who has a valid and current license, certificate, or permit to practice public accountancy from another state to engage in the practice of public accountancy in this state under a practice privilege without obtaining a certificate or license subject to specified requirements. Existing law provides that an accountant whose license was canceled by operation of law, after nonrenewal, as specified, may, upon application to the board and meeting specified requirements, have his or her license placed into a retired status.

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This bill would authorize an individual practicing public accountancy in this state under a practice privilege to be styled and known as a “certified public accountant” and use the abbreviation “C.P.A.” The bill would prohibit the board from restoring that license in retired status to active or inactive status and instead would require the individual to apply for a new license in order to restore his or her license.

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Existing law authorizes the board to issue a certified public accountant (CPA) license to an applicant who holds a valid and unrevoked CPA license in another state, under specified conditions.

end delete begin delete

This bill would require that an out-of-state applicant hold a current, active, and unrestricted CPA license in order to be issued a CPA license under this provision.

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(2) The Professional Engineers Act provides for the regulation and licensure of professional engineers by the Board for Professional Engineers, Land Surveyors, and Geologists. A violation of the licensing provisions of the act is a misdemeanor. Existing law requires all civil engineering plans, calculations, specifications, and reports to be prepared by, or under the responsible charge of, a licensed civil engineer, as specified. Existing law requires all civil engineering plans, calculations, specifications, and reports for the construction of all public school structures to be prepared by, or under the responsible charge of, a licensed architect or a licensed civil engineer who is also licensed as a structural engineer. Existing law requires all civil engineering plans, calculations, specifications, and reports for the construction of all hospitals and other medical facilities having surgery and emergency treatment areas to be prepared by, or under the responsible charge of, a licensed civil engineer who is also licensed as a structural engineer.

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This bill would repeal the requirements that all civil engineering plans and other specified documents for construction of public school structures be prepared by, or under the responsible charge of, a licensed architect or a licensed civil engineer who is also licensed as a structural engineer. The bill would also repeal the requirements that all civil engineering plans and other specified documents for construction of specified hospital and medical facilities be prepared by, or under the responsible charge of, a licensed civil engineer who is also licensed as a structural engineer.

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(3) Existing law establishes within the Department of Consumer Affairs a State Board of Guide Dogs for the Blind, which consists of 7 members appointed by the Governor. Existing law authorizes the board to issue licenses for guide dog training and instructional services. A violation of these licensing provisions is a misdemeanor.

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This bill would also include dogs trained and provided for visually impaired persons within these licensing requirements. The bill would change reporting requirements from a calendar year to a fiscal year period and would make technical changes.

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(4) Under the Funeral Directors and Embalmers Law, the Cemetery and Funeral Bureau regulates licensed funeral establishments and requires that they be operated by a licensed funeral director who is required to provide written information regarding funeral goods and services and prices to consumers. Existing law requires a funeral establishment that maintains an Internet Web site to also post that information on its Internet Web site provided by a link from the homepage. A violation of these provisions is a misdemeanor.

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This bill would require that the funeral establishment’s Internet Web site contain specified key words.

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(5) Existing law provides for the licensure and regulation of structural pest control operators and registered companies by the Structural Pest Control Board. The California Constitution provides that laborers of every class who have worked upon or have furnished material for a property have a lien upon that property for the value of the labor done and material furnished. The California Constitution requires the Legislature to provide, by law, for the speedy and efficient enforcement of those liens. Existing law requires specified registered companies to provide notice regarding possible liens, as specified, to the owner of property prior to entering into a contract to provide work on that property. A violation of these provisions is a misdemeanor.

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This bill would extend the notice requirements to all registered companies.

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Existing law requires a structural pest control operator to provide a report detailing the results of an inspection for wood destroying pests or organisms prior to commencing work on a contract or expressing an opinion regarding the presence or absence of wood destroying pests or organisms, to the Structural Pest Control Board, within the Department of Consumer Affairs, as specified. Existing law requires that the pest control operator deliver a copy of the report to the person requesting inspection, or designated agent, within 10 business days of the inspection. Existing law requires a pest control operator to deliver a copy of that report to the owner or the owner’s agent within 10 working days of an inspection.

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This bill would remove the requirement that the pest control operator provide the owner of the property or the owner’s agent with a copy of the report, unless the owner was the person who requested the inspection.

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(6) Existing law creates the California Travel and Tourism Commission and provides for the membership and meetings of the commission.

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This bill would specify that all meetings of the commission take place in California and would authorize commissioners to attend meetings of the commission by conference telephone or other technology.

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(7) This bill would make various other nonsubstantive changes.

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(8) Because this bill would expand the definition of a crime, it would impose a state-mandated local program.

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

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This bill would provide that no reimbursement is required by this act for a specified reason.

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

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

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begin insert SECTION 1. end insert   

end insert

begin insert Section 42127 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

42127.  

(a) On or before July 1 of each year, the governing
board of each school district shall accomplish the following:

(1) Hold a public hearing conducted in accordance with Section
42103 on the budget to be adopted for the subsequent fiscal year.
The budget to be adopted shall be prepared in accordance with
Section 42126. The agenda for that hearing shall be posted at least
72 hours before the public hearing and shall include the location
where the budget will be available for public inspection.

(2) (A) Adopt a budget. Not later than five days after that
adoption or by July 1, whichever occurs first, the governing board
of the school district shall file that budget with the county
superintendent of schools. The budget and supporting data shall
be maintained and made available for public review. If the
governing board of the school district does not want all or a portion
of the property tax requirement levied for the purpose of making
payments for the interest and redemption charges on indebtedness
as described in paragraph (1) or (2) of subdivision (b) of Section
1 of Article XIII A of the California Constitution, the budget shall
include a statement of the amount or portion for which a levy shall
not be made. For the 2014-15 fiscal year and each fiscal year
thereafter, the governing board of the school district shall not adopt
a budget before the governing board of the school district adopts
a local control and accountability plan, if an existing local control
and accountability plan or annual update to a local control and
accountability plan is not effective for the budget year. The
governing board of a school district shall not adopt a budget that
does not include the expenditures necessary to implement the local
control and accountability plan or the annual update to a local
control and accountability plan that is effective for the budget year.

(B)  begin insert (i) end insert begin insert   end insert Commencing with budgets adopted for the begin delete 2015-16 end delete
begin insert 2016-17 end insert fiscal year, the governing board of a school district that
proposes to adopt a budget that includes begin delete a combined assigned and end delete
unassigned ending begin delete fund balance end delete begin insert balances in the school district’s
general fund and special reserve fund for other than capital outlay
projects that are end insert in excess of the minimum recommended reserve
for economic uncertainties adopted by the state board pursuant to
subdivision (a) of Section begin delete 33128, end delete begin insert 33128 end insert shall, at the public hearing
held pursuant to paragraph (1), provide all of the following for
public review and discussion:

begin delete

(i)

end delete

begin insert (I) end insert  The minimum recommended reserve for economic
uncertainties for each fiscal year identified in the budget.

begin delete

(ii)

end delete

begin insert (II) end insert  The begin delete combined assigned and end delete unassigned ending begin delete fund end delete balances
begin insert in the school district’s general fund and special reserve fund for
other than capital outlay projects end insert that are in excess of the minimum
recommended reserve for economic uncertainties for each fiscal
year identified in the budget.

begin delete

(iii)

end delete

begin insert (III) end insert  A statement of reasons begin delete that substantiates the need for an
assigned and end delete begin insert explaining the end insert unassigned ending begin delete fund balance that
is end delete begin insert balances in the school district’s general fund and special reserve
fund for other than capital outlay projects that are end insert in excess of
the minimum recommended reserve for economic uncertainties
for each fiscal year that the school district identifies begin delete an assigned
and end delete begin insert any end insert unassigned ending fund begin delete balance end delete begin insert balances end insert that begin delete is end delete begin insert are end insert in
excess of the minimum recommended reserve for economic
uncertainties, as identified pursuant to begin delete clause (ii). end delete begin insert subclause (II). end insert

begin insert

(ii) Commencing with the 2016-17 fiscal year, the governing
board of a school district shall adopt a policy establishing
procedures for reporting the fund balances as reflected in the
school district’s governmental fund financial statements. The policy
shall outline how the school district’s fund balances are intended
to ensure that adequate financial resources are available to
address revenue shortfalls, unanticipated expenditures, planned
future one-time expenses, and any other financial or educational
needs of the district. The policy shall include a requirement for an
annual report to the governing board of the school district in a
public meeting at the same meeting as budget adoption.

end insert

(C) The governing board of a school district shall include the
information required pursuant to subparagraph (B) in its budgetary
submission begin delete each time end delete begin insert at the time end insert it files an adopted begin delete or revised end delete
budget with the county superintendent of schools. The information
required pursuant to subparagraph (B) shall be maintained and
made available for public review.

(b) The county superintendent of schools may accept changes
in any statement included in the budget, pursuant to subdivision
(a), of the amount or portion for which a property tax levy shall
not be made. The county superintendent of schools or the county
auditor shall compute the actual amounts to be levied on the
property tax rolls of the school district for purposes that exceed
apportionments to the school district pursuant to Chapter 6
(commencing with Section 95) of Part 0.5 of Division 1 of the
Revenue and Taxation Code. Each school district shall provide all
data needed by the county superintendent of schools or the county
auditor to compute the amounts. On or before August 15, the
county superintendent of schools shall transmit the amounts
computed to the county auditor who shall compute the tax rates
necessary to produce the amounts. On or before September 1, the
county auditor shall submit the rate computed to the board of
supervisors for adoption.

(c) The county superintendent of schools shall do all of the
following:

(1) Examine the adopted budget to determine whether it
complies with the standards and criteria adopted by the state board
pursuant to Section 33127 for application to final local educational
agency budgets. The county superintendent of schools shall
identify, if necessary, technical corrections that are required to be
made to bring the budget into compliance with those standards
and criteria.

(2) Determine whether the adopted budget will allow the school
district to meet its financial obligations during the fiscal year and
is consistent with a financial plan that will enable the school district
to satisfy its multiyear financial commitments. In addition to his
or her own analysis of the budget of each school district, the county
superintendent of schools shall review and consider studies, reports,
evaluations, or audits of the school district that were commissioned
by the school district, the county superintendent of schools, the
Superintendent, and state control agencies and that contain
evidence that the school district is showing fiscal distress under
the standards and criteria adopted in Section 33127 or that contain
a finding by an external reviewer that more than 3 of the 15 most
common predictors of a school district needing intervention, as
determined by the County Office Fiscal Crisis and Management
Assistance Team, are present. The county superintendent of schools
shall either conditionally approve or disapprove a budget that does
not provide adequate assurance that the school district will meet
its current and future obligations and resolve any problems
identified in studies, reports, evaluations, or audits described in
this paragraph.

(3) Determine whether the adopted budget includes the
expenditures necessary to implement the local control and
accountability plan or annual update to the local control and
accountability plan approved by the county superintendent of
schools.

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(4) Determine whether the adopted budget includes a combined
assigned and unassigned ending fund balance that exceeds the
minimum recommended reserve for economic uncertainties. If the
adopted budget includes a combined assigned and unassigned
ending fund balance that exceeds the minimum recommended
reserve for economic uncertainties, the county superintendent of
schools shall verify

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begin insert (4) end insert begin insert   end insert begin insert Verify end insert that the school district complied with the requirements
of subparagraphs (B) and (C) of paragraph (2) of subdivision (a).

(d) (1) On or before September 15, the county superintendent
of schools shall approve, conditionally approve, or disapprove the
adopted budget for each school district. For the 2014-15 fiscal
year and each fiscal year thereafter, the county superintendent of
schools shall disapprove a budget if the county superintendent of
schools determines that the budget does not include the
expenditures necessary to implement a local control and
accountability plan or an annual update to the local control and
accountability plan approved by the county superintendent of
schools. If the governing board of a school district does not submit
a budget to the county superintendent of schools, the county
superintendent of schools shall develop, at school district expense,
a budget for that school district by September 15 and transmit that
budget to the governing board of the school district. The budget
prepared by the county superintendent of schools shall be deemed
adopted, unless the county superintendent of schools approves any
modifications made by the governing board of the school district.
The budget prepared by the county superintendent of schools shall
also comply with the requirements of subparagraph (B) of
paragraph (2) of subdivision (a). The approved budget shall be
used as a guide for the school district’s priorities. The
Superintendent shall review and certify the budget approved by
the begin delete county. end delete begin insert county superintendent of schools. end insert If, pursuant to the
review conducted pursuant to subdivision (c), the county
superintendent of schools determines that the adopted budget for
a school district does not satisfy paragraph (1), (2), (3), or (4) of
that subdivision, he or she shall conditionally approve or
disapprove the budget and, not later than September 15, transmit
to the governing board of the school district, in writing, his or her
recommendations regarding revision of the budget and the reasons
for those recommendations, including, but not limited to, the
amounts of any budget adjustments needed before he or she can
approve that budget. The county superintendent of schools may
assign a fiscal adviser to assist the school district to develop a
budget in compliance with those revisions. In addition, the county
superintendent of schools may appoint a committee to examine
and comment on the begin delete superintendent’s end delete begin insert county superintendent of
schools’ end insert review and recommendations, subject to the requirement
that the committee report its findings to the county superintendent
of schools no later than September 20.

(2)  Notwithstanding any other provision of this article, for the
2014-15 fiscal year and each fiscal year thereafter, the budget
shall not be adopted or approved by the county superintendent of
schools before a local control and accountability plan or update to
an existing local control and accountability plan for the budget
year is approved.

(3) If the adopted budget of a school district is conditionally
approved or disapproved pursuant to paragraph (1), on or before
October 8, the governing board of the school district, in conjunction
with the county superintendent of schools, shall review and respond
to the recommendations of the county superintendent of schools
at a regular meeting of the governing board of the school district.
The response shall include any revisions to the adopted budget
and other proposed actions to be taken, if any, as a result of those
recommendations.

(e) On or before October 22, the county superintendent of
schools shall provide a list to the Superintendent identifying all
school districts for which budgets may be disapproved.

(f) (1) The county superintendent of schools shall examine the
revised budget as provided in paragraph (3) of subdivision (d) to
determine whether it (A) complies with the standards and criteria
adopted by the state board pursuant to Section 33127 for
application to final local educational agency budgets, (B) allows
the school district to meet its financial obligations during the fiscal
year, (C) satisfies all conditions established by the county
superintendent of schools in the case of a conditionally approved
budget, (D) is consistent with a financial plan that will enable the
school district to satisfy its multiyear financial commitments, and,
not later than November 8, shall approve or disapprove the revised
budget, and (E) whether the revised budget complies with the
requirements of subparagraph (B) of paragraph (2) of subdivision
(a). If the county superintendent of schools disapproves the budget,
he or she shall call for the formation of a budget review committee
pursuant to Section 42127.1, unless the governing board of the
school district and the county superintendent of schools agree to
waive the requirement that a budget review committee be formed
and the department approves the waiver after determining that a
budget review committee is not necessary. Upon the grant of a
waiver, the county superintendent of schools immediately has the
authority and responsibility provided in Section 42127.3. Upon
approving a waiver of the budget review committee, the department
shall ensure that a balanced budget is adopted for the school district
by December 31. If no budget is adopted by December 31, the
Superintendent may adopt a budget for the school district. The
Superintendent shall report to the Legislature and the Director of
Finance by January 10 if any school district, including a school
district that has received a waiver of the budget review committee
process, does not have an adopted budget by December 31. This
report shall include the reasons why a budget has not been adopted
by the deadline, the steps being taken to finalize budget adoption,
the date the adopted budget is anticipated, and whether the
Superintendent has or will exercise his or her authority to adopt a
budget for the school district.

(2) Notwithstanding any other law, for the 2014-15 fiscal year
and each fiscal year thereafter, if the county superintendent of
schools disapproves the budget for the sole reason that the county
superintendent of schools has not approved a local control and
accountability plan or an annual update to the local control and
accountability plan filed by the governing board of the school
district pursuant to Section 52070, the county superintendent of
schools shall not call for the formation of a budget review
committee pursuant to Section 42127.1.

(g) Not later than November 8, the county superintendent of
schools shall submit a report to the Superintendent identifying all
school districts for which budgets have been disapproved or budget
review committees waived. The report shall include a copy of the
written response transmitted to each of those school districts
pursuant to paragraph (1) of subdivision (d).

(h) Not later than 45 days after the Governor signs the annual
Budget Act, the school district shall make available for public
review any revisions in revenues and expenditures that it has made
to its budget to reflect the funding made available by that Budget
Act.

(i) Any school district for which the county board of education
serves as the governing board of the school district is not subject
to subdivisions (c) to (h), inclusive, but is governed instead by the
budget procedures set forth in Section 1622.

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begin insert SEC. 2. end insert   

end insert

begin insert Section 42127.01 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

42127.01.  

(a) In a fiscal year immediately after a fiscal year
in which a transfer is made into the Public School System
Stabilization Account, a school district budget that is adopted begin delete or
revised end delete pursuant to Section 42127 shall not contain begin delete a combined
assigned or end delete unassigned ending begin delete fund balance that is end delete begin insert balances in the
school district’s general fund and special reserve fund for other
than capital outlay projects end insert in excess of begin delete the following: end delete begin insert 17 percent
of those funds. end insert

begin delete

(1) For school districts with fewer than 400,000 units of average
daily attendance, the sum of the school district’s applicable
minimum recommended reserve for economic uncertainties adopted
by the state board pursuant to subdivision (a) of Section 33128,
multiplied by two.

(2) For school districts with more than 400,000 units of average
daily attendance, the sum of the school district’s applicable
minimum recommended reserve for economic uncertainties adopted
by the state board pursuant to subdivision (a) of Section 33128,
multiplied by three.

end delete

(b) A county superintendent of schools begin delete may end delete begin insert shall end insert grant a school
district under its jurisdiction an exemption from the requirements
of subdivision (a) for up to two consecutive fiscal years within a
three-year period if the school district provides documentation
indicating that extraordinary fiscal circumstances, including, but
not limited to, multiyear infrastructure or technology projects,
substantiate the need for begin delete a combined assigned or unassigned ending
fund balance that is in excess of the minimum recommended
reserve for economic uncertainties. As a condition of receiving an
exception, a school district shall do all of the following: end delete begin insert unassigned
ending balances in the school district’s general fund and special
reserve fund for other than capital outlay projects in excess of the
amount described in subdivision (a). end insert

begin delete

(1) Provide a statement that substantiates the need for an
assigned and unassigned ending fund balance that is in excess of
the minimum recommended reserve for economic uncertainties.

(2) Identify the funding amounts in the budget adopted by the
school district that are associated with the extraordinary fiscal
circumstances.

(3) Provide documentation that no other fiscal resources are
available to fund the extraordinary fiscal circumstances.

(c) This section shall become operative on December 15, 2014,
only if Assembly Constitutional Amendment No. 1 of the 2013-14
Second Extraordinary Session is approved by the voters at the
November 4, 2014, statewide general election. If Assembly
Constitutional Amendment No. 1 of the 2013-14 Second
Extraordinary Session is not approved by the voters at the
November 4, 2014, statewide general election, this section shall
not become operative and is repealed on January 1, 2015.

end delete begin insert

(c) Each county superintendent of schools shall adopt a policy
establishing the procedures for submitting exemption requests and
the criteria by which the county superintendent of schools shall
determine whether extraordinary fiscal circumstances exist.

end insert begin insert

(d) This section shall not apply to school districts with fewer
than 2,501 units of average daily attendance or to basic aid school
districts, defined as those school districts that do not receive
funding from the state pursuant to Section 42238.02 or 42238.03.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert begin insert

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

end insert

begin delete

SECTION 1.  

Section 5055 of the Business and Professions
Code is amended to read:

5055.  

Any person who has received from the board a certificate
of certified public accountant, or who is authorized to practice
public accountancy in this state pursuant to Article 5.1
(commencing with Section 5096), may, subject to Section 5051,
be styled and known as a “certified public accountant” and may
also use the abbreviation “C.P.A.” No other person, except a firm
registered under this chapter, shall assume or use that title,
designation, or abbreviation or any other title, designation, sign,
card, or device tending to indicate that the person using it is a
certified public accountant.

SEC. 2.  

Section 5070.1 of the Business and Professions Code
is amended to read:

5070.1.  

(a) The board may establish, by regulation, a system
for the placement of a license into a retired status, upon application,
for certified public accountants and public accountants who are
not actively engaged in the practice of public accountancy or any
activity that requires them to be licensed by the board.

(b) No licensee with a license in a retired status shall engage in
any activity for which a permit is required.

(c) The board shall deny an applicant’s application to place a
license in a retired status if the permit is subject to an outstanding
order of the board, is suspended, revoked, or otherwise punitively
restricted by the board, or is subject to disciplinary action under
this chapter.

(d) (1) The holder of a license that was canceled pursuant to
Section 5070.7 may apply for the placement of that license in a
retired status pursuant to subdivision (a).

(2) Upon approval of an application made pursuant to paragraph
(1), the board shall reissue that license in a retired status.

(3) The holder of a canceled license that was placed in retired
status between January 1, 1994, and January 1, 1999, inclusive,
shall not be required to meet the qualifications established pursuant
to subdivision (e), but shall be subject to all other requirements of
this section.

(e) The board shall establish minimum qualifications to place
a license in retired status.

(f) The board may exempt the holder of a license in a retired
status from the renewal requirements described in Section 5070.5.

(g) The board shall establish minimum qualifications for the
restoration of a license in a retired status to an active status. These
minimum qualifications shall include, but are not limited to,
continuing education and payment of a fee as provided in
subdivision (h) of Section 5134.

(h) The board shall not restore to active or inactive status a
license that was canceled by operation of law, pursuant to
subdivision (a) of Section 5070.7, and then placed into retired
status pursuant to subdivision (d). The individual shall instead
apply for a new license, as described in subdivision (c) of Section
5070.7, in order to restore his or her license.

SEC. 3.  

Section 5087 of the Business and Professions Code is
amended to read:

5087.  

(a) The board may issue a certified public accountant
license to any applicant who is a holder of a current, active, and
unrestricted certified public accountant license issued under the
laws of any state, if the board determines that the standards under
which the applicant received the license are substantially equivalent
to the standards of education, examination, and experience
established under this chapter and the applicant has not committed
acts or crimes constituting grounds for denial under Section 480.
To be authorized to sign reports on attest engagements, the
applicant shall meet the requirements of Section 5095.

(b) The board may in particular cases waive any of the
requirements regarding the circumstances in which the various
parts of the examination were to be passed for an applicant from
another state.

SEC. 4.  

Section 6735 of the Business and Professions Code is
amended to read:

6735.  

(a) All civil (including structural and geotechnical)
engineering plans, calculations, specifications, and reports
(hereinafter referred to as “documents”) shall be prepared by, or
under the responsible charge of, a licensed civil engineer and shall
include his or her name and license number. Interim documents
shall include a notation as to the intended purpose of the document,
such as “preliminary,” “not for construction,” “for plan check
only,” or “for review only.” All civil engineering plans and
specifications that are permitted or that are to be released for
construction shall bear the signature and seal or stamp of the
licensee and the date of signing and sealing or stamping. All final
civil engineering calculations and reports shall bear the signature
and seal or stamp of the licensee, and the date of signing and
sealing or stamping. If civil engineering plans are required to be
signed and sealed or stamped and have multiple sheets, the
signature, seal or stamp, and date of signing and sealing or
stamping shall appear on each sheet of the plans. If civil
engineering specifications, calculations, and reports are required
to be signed and sealed or stamped and have multiple pages, the
signature, seal or stamp, and date of signing and sealing or
stamping shall appear at a minimum on the title sheet, cover sheet,
or signature sheet.

(b) Notwithstanding subdivision (a), a licensed civil engineer
who signs civil engineering documents shall not be responsible
for damage caused by subsequent changes to or uses of those
documents, if the subsequent changes or uses, including changes
or uses made by state or local governmental agencies, are not
authorized or approved by the licensed civil engineer who
originally signed the documents, provided that the engineering
service rendered by the civil engineer who signed the documents
was not also a proximate cause of the damage.

SEC. 5.  

Section 7083 of the Business and Professions Code is
amended to read:

7083.  

(a) Notwithstanding any other law, licensees shall notify
the registrar, on a form prescribed by the registrar, in writing within
90 days of any change to information recorded under this chapter.
This notification requirement shall include, but not be limited to,
changes in business address, personnel, business name, qualifying
individual bond exemption pursuant to Section 7071.9, or
exemption to qualify multiple licenses pursuant to Section 7068.1.

(b) Failure of the licensee to notify the registrar of any change
to information within 90 days shall cause the change to be effective
the date the written notification is received at the board’s
headquarters office.

(c) Failure to notify the registrar of the changes within the 90
days is grounds for disciplinary action.

SEC. 6.  

Section 7200 of the Business and Professions Code is
amended to read:

7200.  

(a) There is in the Department of Consumer Affairs a
State Board of Guide Dogs for the Blind in whom enforcement of
this chapter is vested. The board shall consist of seven members
appointed by the Governor. One member shall be the Director of
Rehabilitation or his or her designated representative. The
remaining members shall be persons who have shown a particular
interest in dealing with the problems of persons who are blind or
visually impaired and at least two of them shall be persons who
are blind or visually impaired who use guide dogs.

(b) This section shall remain in effect only until January 1, 2018,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2018, deletes or extends that date.
Notwithstanding any other law, the repeal of this section renders
the board subject to review by the appropriate policy committees
of the Legislature.

SEC. 7.  

Section 7200.5 of the Business and Professions Code
is amended to read:

7200.5.  

The board shall have exclusive authority in this state
to issue licenses for the instruction of persons who are blind or
visually impaired in the use of guide dogs and for the training of
guide dogs for use by persons who are blind or visually impaired.
It shall also have exclusive authority in this state to issue licenses
to operate schools for the training of guide dogs and the instruction
of persons who are blind or visually impaired in the use of guide
dogs.

SEC. 8.  

Section 7200.7 of the Business and Professions Code
is amended to read:

7200.7.  

A fee equal to no more than 0.005 of all school
expenses incurred in the most recently concluded school fiscal
year, as specified in the audit required under Section 7217, shall
be paid no later than April 30 of each year for renewal of a school’s
license pursuant to Section 7200.5. The board shall, by regulation,
define the exact amount of the fee. All fees collected pursuant to
this section shall be deposited into the Guide Dogs for the Blind
Fund, which is hereby created.

SEC. 9.  

Section 7201 of the Business and Professions Code is
amended to read:

7201.  

No person shall be eligible to membership in the board
who is a stockholder in, or an owner of, or financially interested
directly or indirectly, in any company, organization, or concern
supplying, delivering, or furnishing any guide dogs for use by
persons who are blind or visually impaired.

SEC. 10.  

Section 7202 of the Business and Professions Code
is amended to read:

7202.  

Each of the appointed members of the board shall hold
office for a term of four years and until his or her successor is
appointed and qualified or until one year shall have elapsed since
the expiration of the term for which he or she was appointed,
whichever first occurs. No person shall serve as an appointed
member of the board for more than two consecutive terms.

SEC. 11.  

Section 7208 of the Business and Professions Code
is amended to read:

7208.  

Pursuant to the provisions of the Administrative
Procedure Act the board may make such rules and regulations as
are reasonably necessary to:

(a) Govern the procedure of the board.

(b) Govern the admission of applicants for examination for
license to instruct persons who are blind or visually impaired in
the use of guide dogs or to engage in the business of training,
selling, hiring, or being in the business of supplying guide dogs
for persons who are blind or visually impaired.

(c) Govern the operation of schools which furnish guide dogs
and train persons who are blind or visually impaired to use guide
dogs.

(d) The reissuance of licenses.

(e) The reexamination of licensees.

SEC. 12.  

Section 7209 of the Business and Professions Code
is amended to read:

7209.  

A person to be eligible for examination as an instructor
must (a) have a knowledge of the special problems of persons
who are blind or visually impaired and how to teach them, (b) be
able to demonstrate by actual blindfold test under traffic conditions
his or her ability to train guide dogs with whom persons who are
blind or visually impaired would be safe, (c) be suited
temperamentally and otherwise to instruct persons who are blind
or visually impaired in the use of guide dogs, and (d) have had at
least three years’ actual experience, comprising such number of
hours as the board may require, as an instructor, and have handled
22 person-dog units; or its equivalent, as determined by the board,
as an apprentice under a licensed instructor or under an instructor
in a school satisfactory to the board.

SEC. 13.  

Section 7209.5 of the Business and Professions Code
is amended to read:

7209.5.  

Except as the context otherwise requires, as used in
this chapter the term “instructor” means a person who instructs
persons who are blind or visually impaired in the use of guide dogs
or who engages in the business of training, selling, hiring, or
supplying guide dogs for persons who are blind or visually
impaired.

SEC. 14.  

Section 7210.5 of the Business and Professions Code
is amended to read:

7210.5.  

It is unlawful to solicit funds for any person purporting
to provide guide dogs for persons who are blind or visually
impaired in this state unless the person for whose benefit the
solicitation is made holds a valid and unimpaired license issued
by the State Board of Guide Dogs for the Blind.

As used in this section “person” means an individual, firm,
partnership, association, corporation, limited liability company,
or cooperative association.

SEC. 15.  

Section 7211.1 of the Business and Professions Code
is amended to read:

7211.1.  

(a) As a condition of renewal of an instructor’s license,
the instructor shall provide proof of completion of not less than 8
hours of continuing education. The board shall determine the form
of proof.

(b) Continuing education shall meet the criteria specified in
Section 166, and shall be in one or more of the following subject
matter areas:

(1) Blindness and mobility.

(2) Health issues relating to blindness.

(3) Instructing persons who are blind or visually impaired.

(4) Care and training of dogs.

SEC. 16.  

Section 7211.2 of the Business and Professions Code
is amended to read:

7211.2.  

A plea or verdict of guilty or a conviction following a
plea of nolo contendere is deemed to be a conviction within the
meaning of this article. The board may order the license suspended
or revoked, or may decline to issue a license, when the time for
appeal has elapsed, or the judgment of conviction has been affirmed
on appeal or when an order granting probation is made suspending
the imposition of sentence, irrespective of a subsequent order under
the provisions of Section 1203.4 of the Penal Code allowing such
person to withdraw his or her plea of guilty and to enter a plea of
not guilty, or setting aside the verdict of guilty, or dismissing the
accusation, information, or indictment.

SEC. 17.  

Section 7215 of the Business and Professions Code
is amended to read:

7215.  

No person shall sell, give, or furnish any guide dog to a
person who is blind or visually impaired unless the following
requirements have been met:

(a) The dog has been immunized against distemper and rabies.

(b) The dog has been spayed or neutered.

(c) The dog has been examined by a licensed veterinarian and
found to be in good health.

A certificate from a veterinarian certifying to the foregoing shall
be delivered to the recipient of the dog at the time the dog is
assigned to a client.

SEC. 18.  

Section 7215.5 of the Business and Professions Code
is amended to read:

7215.5.  

(a) During the first year following the successful
training of each person-dog unit, and release from a guide dog
training school of the trained person supplied with a guide dog,
the school may retain title to the trained dog. During this
probationary year, the school may enter into a contractual
agreement with the user of the dog describing the conditions under
which the user may maintain the status of legal custodian of the
dog. During the probationary year, the school, acting in what it
deems to be the best interest of the user, the dog, or the public,
may temporarily or permanently resume possession of the dog.

(b) Within 15 days after the end of each fiscal year, each
licensed school shall report to the board the following:

(1) The number of dog ownership titles transferred to dog users
pursuant to this section during the calendar year.

(2) The number of title recoveries and repossessions made by
the school pursuant to this section during the calendar year.

(3) The number, type, and amount of charges assessed for
followup training, instruction, veterinary, or boarding services,
pursuant to this section, which make a distinction between users
who have acquired title to their dogs and users who have not
acquired title.

(4) The views of the governing entity of the school as to any
problems or concerns relative to compliance with the provisions
of this section, along with recommendations for appropriate
legislative or administrative changes commensurate with the
purposes of this section.

(c) Immediately upon completion of the first year following the
successful training referred to above, if the training school and the
dog user are mutually satisfied with the operation of the person-dog
unit, title to the dog shall be transferred to the user who is blind
or visually impaired if the user so desires. Transfer of title shall
be evidenced by a transfer of title agreement executed by both
parties thereto. The school may retain an option to recover title
and possession to the guide dog subject to conditions described in
the transfer of title agreement. These conditions may include, but
are not limited to, the following:

(1) If in the school’s opinion, the guide dog is being misused
or neglected or mistreated by its user who is blind or visually
impaired.

(2) If the user to whom the dog was furnished has ceased to use
the dog as a guide and the dog is not too old to be retrained as a
guide for another person who is blind or visually impaired.

(3) If, in the school’s opinion, the dog is no longer a safe guide
and the user refuses to cease using the dog as a guide after being
requested by the school to cease this use.

(d) The guide dog school shall make no distinction as to the
quality or extent of followup or supportive services available to
its blind graduates based on whether they elect to acquire title to
their dogs or allow title to remain with the school after the
probationary year. The school may, however, make this distinction
when assessing reasonable and appropriate charges for followup
training, instruction, veterinary, or boarding services.

(e) No applicant for admission to a guide dog training school,
nor any enrolled student, shall be required by the school prior to
completion of his or her training to sign any instrument or to
announce his or her intention regarding transfer of title of the dog
from the school to himself or herself upon completion of the
training and probation period.

SEC. 19.  

Section 7217 of the Business and Professions Code
is amended to read:

7217.  

(a) Within 60 days after the termination of the fiscal
year of a school, there shall be furnished to the board the following:

(1) A list of students accepted for training and those who have
completed training.

(2) A list of the number of dogs trained.

(b) Within 90 days after the end of a fiscal year, there shall be
furnished to the board an independent audit of the school’s finances
by a certified public accountant licensed by this state.

SEC. 20.  

Section 7685 of the Business and Professions Code
is amended to read:

7685.  

(a) (1) Every funeral director shall provide to any
person, upon beginning discussion of prices or of the funeral goods
and services offered, a written or printed list containing, but not
necessarily limited to, the price for professional services offered,
which may include the funeral director’s services, the preparation
of the body, the use of facilities, and the use of automotive
equipment. All services included in this price or prices shall be
enumerated. The funeral director shall also provide a statement on
that list that gives the price range for all caskets offered for sale.

(2) The list shall also include a statement indicating that the
survivor of the deceased who is handling the funeral arrangements,
or the responsible party, is entitled to receive, prior to the drafting
of any contract, a copy of any preneed agreement that has been
signed and paid for, in full or in part, by or on behalf of the
deceased, and that is in the possession of the funeral establishment.

(3) The funeral director shall also provide a written statement
or list that, at a minimum, specifically identifies a particular casket
or caskets by price and by thickness of metal, or type of wood, or
other construction, interior and color, in addition to other casket
identification requirements under Part 453 of Title 16 of the Code
of Federal Regulations and any subsequent version of this
regulation, when a request for specific information on a casket or
caskets is made in person by any individual. Prices of caskets and
other identifying features such as thickness of metal, or type of
wood, or other construction, interior and color, in addition to other
casket identification requirements required to be given over the
telephone by Part 453 of Title 16 of the Code of Federal
Regulations and any subsequent version of this regulation, shall
be provided over the telephone, if requested.

(b) (1) Each licensed funeral establishment that maintains an
Internet Web site shall post on its Internet Web site the list of
funeral goods and services that are required to be included in the
establishment’s general price list, pursuant to federal rule, and a
statement that the general price list is available upon request.

(2) Information posted pursuant to paragraph (1) shall be
provided by a link from the homepage of the Internet Web site
with a word or combination of words, including, but not limited
to, “goods,” “merchandise,” “products,” or “services.”

(3) An establishment that posts on its Internet Web site home
page the words “price information” or a similar phrase that includes
the word “price,” with a link that leads to the establishment’s
general price list, need not comply with paragraphs (1) or (2).

(4) Nothing in this subdivision shall be construed to affect an
establishment’s obligations under federal or state law effective
prior to January 1, 2013.

(5) This subdivision shall become operative on January 1, 2013.

SEC. 21.  

Section 7818 of the Business and Professions Code
is amended to read:

7818.  

The board, pursuant to the provisions contained in
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
3 of Title 2 of the Government Code, may adopt, amend or repeal
rules and regulations to carry out the provisions of this chapter.

SEC. 22.  

Section 8508 of the Business and Professions Code
is amended to read:

8508.  

“Household” means any structure and its contents that
are used for persons and their convenience.

SEC. 23.  

Section 8513 of the Business and Professions Code
is amended to read:

8513.  

(a) The board shall prescribe a form entitled “Notice to
Owner” that shall describe, in nontechnical language and in a clear
and coherent manner using words with common and everyday
meaning, the pertinent provisions of this state’s mechanics lien
laws and the rights and responsibilities of an owner of property
and a registered pest control company thereunder. Each company
registered under this chapter, prior to entering into a contract with
an owner for work for which a company registration is required,
shall give a copy of this “Notice to Owner” to the owner, his or
her agent, or the payer.

(b) No company that is required to be registered under this
chapter shall require or request a waiver of lien rights from any
subcontractor, employee, or supplier.

(c) Each company registered under this chapter that acts as a
subcontractor for another company registered under this chapter
shall, within 20 days of commencement of any work for which a
company registration is required, give the preliminary notice in
accordance with Chapter 2 (commencing with Section 8200) of
Title 2 of Part 6 of Division 4 of the Civil Code, to the owner, his
or her agent, or the payer.

(d) Each company registered under this chapter that acts as a
prime contractor for work for which a company registration is
required shall, prior to accepting payment for the work, furnish to
the owner, his or her agent, or the payer a full and unconditional
release from any claim of mechanics lien by any subcontractor
entitled to enforce a mechanics lien pursuant to Section 8410 of
the Civil Code.

(e) Each company registered under this chapter that subcontracts
to another company registered under this chapter work for which
a company registration is required shall furnish to the subcontractor
the name of the owner, his or her agent, or the payer.

(f) A violation of the provisions of this section is a ground for
disciplinary action.

SEC. 24.  

Section 8516.5 of the Business and Professions Code
is repealed.

SEC. 25.  

Section 8552 of the Business and Professions Code
is amended to read:

8552.  

It is unlawful for any person to advertise or represent in
any manner that any pest control work, in whole or in part, has
been done upon any structure, unless the work has been performed
by a registered company, except as otherwise provided in this
chapter.

SEC. 26.  

Section 8611 of the Business and Professions Code
is amended to read:

8611.  

(a) Each branch office shall have a branch supervisor
designated by the registered company to supervise and assist the
company’s employees who are located at that branch. The branch
supervisor shall be an individual who is licensed by the board as
an operator or a field representative in the branch or branches of
business being conducted and his or her license shall be
prominently displayed in the branch office.

(b) If a branch supervisor ceases for any reason to be connected
with a registered company, the company shall notify the registrar
in writing within 10 days from that cessation. If this notice is given,
the company’s branch office registration shall remain in force for
a reasonable length of time to be determined by rules of the board,
during which period the company shall submit to the registrar in
writing the name of another qualified branch supervisor.

SEC. 27.  

Section 17913 of the Business and Professions Code
is amended to read:

17913.  

(a) The fictitious business name statement shall contain
all of the information required by this subdivision and shall be
substantially in the following form:

 

FICTITIOUS BUSINESS NAME STATEMENT
The following person (persons) is (are) doing business as
*
at **    :
***
This business is conducted by ****
The registrant commenced to transact business under the fictitious business name or names listed above on
*****
I declare that all information in this statement is true and correct. (A registrant who declares as true any material matter pursuant to Section 17913 of the Business and Professions Code that the registrant knows to be false is guilty of a misdemeanor punishable by a fine not to exceed one thousand dollars ($1,000).)
Registrant signature
Statement filed with the County Clerk of ____ County on

 

NOTICE--IN ACCORDANCE WITH SUBDIVISION (a) OF
SECTION 17920, A FICTITIOUS NAME STATEMENT
GENERALLY EXPIRES AT THE END OF FIVE YEARS FROM
THE DATE ON WHICH IT WAS FILED IN THE OFFICE OF
THE COUNTY CLERK, EXCEPT, AS PROVIDED IN
SUBDIVISION (b) OF SECTION 17920, WHERE IT EXPIRES
40 DAYS AFTER ANY CHANGE IN THE FACTS SET FORTH
IN THE STATEMENT PURSUANT TO SECTION 17913
OTHER THAN A CHANGE IN THE RESIDENCE ADDRESS
OF A REGISTERED OWNER. A NEW FICTITIOUS BUSINESS
NAME STATEMENT MUST BE FILED BEFORE THE
EXPIRATION.

THE FILING OF THIS STATEMENT DOES NOT OF ITSELF
AUTHORIZE THE USE IN THIS STATE OF A FICTITIOUS
BUSINESS NAME IN VIOLATION OF THE RIGHTS OF
ANOTHER UNDER FEDERAL, STATE, OR COMMON LAW
(SEE SECTION 14411 ET SEQ., BUSINESS AND
PROFESSIONS CODE).

(b) The fictitious business name statement shall contain the
following information set forth in the manner indicated in the form
provided by subdivision (a):

(1) Where the asterisk (*) appears in the form, insert the
fictitious business name or names. Only those businesses operated
at the same address and under the same ownership may be listed
on one fictitious business name statement.

(2) Where the two asterisks (**) appear in the form: If the
registrant has a place of business in this state, insert the street
address, and county, of his or her principal place of business in
this state. If the registrant has no place of business in this state,
insert the street address, and county, of his or her principal place
of business outside this state.

(3) Where the three asterisks (***) appear in the form: If the
registrant is an individual, insert his or her full name and residence
address. If the registrants are a married couple, insert the full name
and residence address of both parties to the marriage. If the
registrant is a general partnership, copartnership, joint venture, or
limited liability partnership, insert the full name and residence
address of each general partner. If the registrant is a limited
partnership, insert the full name and residence address of each
general partner. If the registrant is a limited liability company,
insert the name and address of the limited liability company, as
set out in its articles of organization on file with the California
Secretary of State, and the state of organization. If the registrant
is a trust, insert the full name and residence address of each trustee.
If the registrant is a corporation, insert the name and address of
the corporation, as set out in its articles of incorporation on file
with the California Secretary of State, and the state of
incorporation. If the registrants are state or local registered
domestic partners, insert the full name and residence address of
each domestic partner. If the registrant is an unincorporated
association other than a partnership, insert the name of each person
who is interested in the business of the association and whose
liability with respect to the association is substantially the same
as that of a general partner.

(4) Where the four asterisks (****) appear in the form, insert
whichever of the following best describes the nature of the
business: (i) “an individual,” (ii) “a general partnership,” (iii) “a
limited partnership,” (iv) “a limited liability company,” (v) “an
unincorporated association other than a partnership,” (vi) “a
corporation,” (vii) “a trust,” (viii) “copartners,” (ix) “a married
couple,” (x) “joint venture,” (xi) “state or local registered domestic
partners,” or (xii) “a limited liability partnership.”

(5) Where the five asterisks (*****) appear in the form, insert
the date on which the registrant first commenced to transact
business under the fictitious business name or names listed, if
already transacting business under that name or names. If the
registrant has not yet commenced to transact business under the
fictitious business name or names listed, insert the statement, “Not
applicable.”

(c) The registrant shall declare that all of the information in the
fictitious business statement is true and correct. A registrant who
declares as true any material matter pursuant to this section that
the registrant knows to be false is guilty of a misdemeanor
punishable by a fine not to exceed one thousand dollars ($1,000).

(d) (1) At the time of filing of the fictitious business name
statement, the registrant filing on behalf of the registrant shall
present personal identification in the form of a California driver’s
license or other government identification acceptable to the county
clerk to adequately determine the identity of the registrant filing
on behalf of the registrant as provided in subdivision (e) and the
county clerk may require the registrant to complete and sign an
affidavit of identity.

(2) In the case of a registrant utilizing an agent for submission
of the registrant’s fictitious business name statement for filing, at
the time of filing of the fictitious business name statement, the
agent filing on behalf of the registrant shall present personal
identification in the form of a California driver’s license or other
government identification acceptable to the county clerk to
adequately determine the identity of the agent filing on behalf of
the registrant as provided in subdivision (e). The county clerk may
also require the agent to submit a notarized statement signed by
the registrant declaring the registrant has authorized the agent to
submit the filing on behalf of the registrant.

(e) If the registrant is a corporation, a limited liability company,
a limited partnership, or a limited liability partnership, the county
clerk may require documentary evidence issued by the California
Secretary of State and deemed acceptable by the county clerk,
indicating the current existence and good standing of that business
entity to be attached to a completed and notarized affidavit of
identity, for purposes of subdivision (d).

(f) The county clerk may require a registrant that mails a
fictitious business name statement to a county clerk’s office for
filing to submit a completed and notarized affidavit of identity. A
registrant that is a corporation, limited liability company, limited
partnership, or limited liability partnership, if required by the
county clerk to submit an affidavit of identity, shall also submit
documentary evidence issued by the California Secretary of State
indicating the current existence and good standing of that business
entity.

(g) A county clerk that chooses to establish procedures pursuant
to this section shall prescribe the form of affidavit of identity for
filing by a registrant in that county.

SEC. 28.  

Section 13995.40 of the Government Code is amended
to read:

13995.40.  

(a) Upon approval of the initial referendum, the
office shall establish a nonprofit mutual benefit corporation named
the California Travel and Tourism Commission. The commission
shall be under the direction of a board of commissioners, which
shall function as the board of directors for purposes of the
Nonprofit Corporation Law.

(b) The board of commissioners shall consist of 37
commissioners comprising the following:

(1) The director, who shall serve as chairperson.

(2) (A) Twelve members, who are professionally active in the
tourism industry, and whose primary business, trade, or profession
is directly related to the tourism industry, shall be appointed by
the Governor. Each appointed commissioner shall represent only
one of the 12 tourism regions designated by the office, and the
appointed commissioners shall be selected so as to represent, to
the greatest extent possible, the diverse elements of the tourism
industry. Appointed commissioners are not limited to individuals
who are employed by or represent assessed businesses.

(B) If an appointed commissioner ceases to be professionally
active in the tourism industry or his or her primary business, trade,
or profession ceases to be directly related to the tourism industry,
he or she shall automatically cease to be an appointed
commissioner 90 days following the date on which he or she ceases
to meet both of the eligibility criteria specified in subparagraph
(A), unless the commissioner becomes eligible again within that
90-day period.

(3) Twenty-four elected commissioners, including at least one
representative of a travel agency or tour operator that is an assessed
business.

(c) The commission established pursuant to Section 15364.52
shall be inoperative so long as the commission established pursuant
to this section is in existence.

(d) Elected commissioners shall be elected by industry category
in a referendum. Regardless of the number of ballots received for
a referendum, the nominee for each commissioner slot with the
most weighted votes from assessed businesses within that industry
category shall be elected commissioner. In the event that an elected
commissioner resigns, dies, or is removed from office during his
or her term, the commission shall appoint a replacement from the
same industry category that the commissioner in question
represented, and that commissioner shall fill the remaining term
of the commissioner in question. The number of commissioners
elected from each industry category shall be determined by the
weighted percentage of assessments from that category.

(e) The director may remove any elected commissioner
following a hearing at which the commissioner is found guilty of
abuse of office or moral turpitude.

(f) (1) The term of each elected commissioner shall commence
July 1 of the year next following his or her election, and shall
expire on June 30 of the fourth year following his or her election.
If an elected commissioner ceases to be employed by or with an
assessed business in the category and segment which he or she
was representing, his or her term as an elected commissioner shall
automatically terminate 90 days following the date on which he
or she ceases to be so employed, unless, within that 90-day period,
the commissioner again is employed by or with an assessed
business in the same category and segment.

(2) Terms of elected commissioners that would otherwise expire
effective December 31 of the year during which legislation adding
this subdivision is enacted shall automatically be extended until
June 30 of the following year.

(g) With the exception of the director, no commissioner shall
serve for more than two consecutive terms. For purposes of this
subdivision, the phrase “two consecutive terms” shall not include
partial terms.

(h) Except for the original commissioners, all commissioners
shall serve four-year terms. One-half of the commissioners
originally appointed or elected shall serve a two-year term, while
the remainder shall serve a four-year term. Every two years
thereafter, one-half of the commissioners shall be appointed or
elected by referendum.

(i) The selection committee shall determine the initial slate of
candidates for elected commissioners. Thereafter the
commissioners, by adopted resolution, shall nominate a slate of
candidates, and shall include any additional candidates complying
with the procedure described in Section 13995.62.

(j) The commissioners shall elect a vice chairperson from the
elected commissioners.

(k) The commission may lease space from the office.

(l) The commission and the office shall be the official state
representatives of California tourism.

(m) (1) All commission meetings shall be held in California.

(2) Commissioners may participate in meetings by means of
conference telephone and other technology.

(n) No person shall receive compensation for serving as a
commissioner, but each commissioner shall receive reimbursement
for reasonable expenses incurred while on authorized commission
business.

(o) Assessed businesses shall vote only for commissioners
representing their industry category.

(p) Commissioners shall comply with the requirements of the
Political Reform Act of 1974 (Title 9 (commencing with Section
81000)). The Legislature finds and declares that commissioners
appointed or elected on the basis of membership in a particular
tourism segment are appointed or elected to represent and serve
the economic interests of those tourism segments and that the
economic interests of these members are the same as those of the
public generally.

(q) Commission meetings shall be subject to the requirements
of the Bagley-Keene Open Meeting Act (Article 9 (commencing
with Section 11120) of Chapter 1 of Part 1).

(r) The executive director of the commission shall serve as
secretary to the commission, a nonvoting position, and shall keep
the minutes and records of all commission meetings.

SEC. 29.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

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