Senate BillNo. 1005


Introduced by Senator Jackson

(Coauthor: Senator Leno)

February 10, 2016


An act to amend Section 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 116.540, 371, 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, 5040, 5042, 5203, 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.

LEGISLATIVE COUNSEL’S DIGEST

SB 1005, as introduced, Jackson. Marriage.

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.

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

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

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

P2    1

SECTION 1.  

Section 17537.1 of the Business and Professions
2Code
is amended to read:

3

17537.1.  

(a) It is unlawful for any person, or an employee,
4begin delete agentend deletebegin insert agent,end insert or independent contractor employed or authorized by
5that person, by any means, as part of an advertising plan or
6program, to offer any incentive as an inducement to the recipient
7to visit a location, attend a sales presentation, or contact a sales
8agent in person, bybegin delete telephoneend deletebegin insert telephone,end insert or by mail, unless the
9offer clearly and conspicuously discloses in writing, in readily
10understandable language, all of the information required in
11paragraphs (1) and (2). If the offer is not initially made in writing,
12the required disclosures shall be received by the recipient in writing
13prior to any scheduled visit to a location, sales presentation, or
14contact with a sales agent. For purposes of this section, the term
15“incentive” means any item or service of value, including, but not
16limited to, any prize, gift, money, or other tangible property.

17(1) The following disclosures shall appear on the front (or first)
18page of the offer:

19(A) The name and street address of the owner of the real or
20personal property or the provider of the services which are the
21subject of the visit, sales presentation, or contact with a sales agent.
22If the offer is made by an agent or independent contractor employed
23or authorized by the owner or provider, or is made under a name
24other than the true name of the owner or provider, the name of the
25owner or provider shall be more prominently and conspicuously
26displayed than the name of the agent, independent contractor, or
27other name.

P3    1(B) A general description of the business of the owner or
2provider identified pursuant to subparagraph (A), and the purpose
3of any requested visit, sales presentation, or contact with a sales
4agent, which shall include a general description of the real or
5personal property or services which are the subject of the sales
6presentation and a clear statement, if applicable, that there will be
7a sales presentation and the approximate duration of the visit and
8sales presentation.

9(C) If the recipient is not assured of receiving any particular
10incentive, a statement of the odds of receiving each incentive
11offered or, in the alternative, a clear statement describing the
12location in the offer where the odds can be found. The odds shall
13be stated in whole Arabic numbers in a format such as: “1 chance
14in 100,000” or “1:100,000.” The odds and, where applicable, the
15alternative statement describing their location, shall be printed in
16a type size that is at least equal to that used for the standard text
17on the front (or first) page of the offer.

18(D) A clear statement, if applicable, that the offer is subject to
19specific restrictions, qualifications, and conditions and a statement
20describing the location in the offer where the restrictions,
21qualifications, and conditions may be found. Both statements shall
22be printed in a type size that is at least equal to that used for the
23standard text on the front (or first) page of the offer.

24(2) The following disclosures shall appear in the offer, but need
25not appear on the front (or first) page of the offer:

26(A) Unless the odds are disclosed on the front (or first) page of
27the offer, a statement of the odds of receiving each incentive
28offered, printed in the size and format set forth in subparagraph
29(C) of paragraph (1).

30(B) All restrictions, qualifications, and other conditions which
31must be satisfied before the recipient is entitled to receive the
32incentive, including but not limited to:

33(i) Any deadline by which the recipient must visit the location,
34attend the sales presentation, or contact the sales agent in order to
35receive an incentive.

36(ii) Any other conditions, such as a minimum age qualification,
37a financial qualification, or a requirement that if the recipient is
38married bothbegin delete husband and wifeend deletebegin insert spousesend insert must be present in order
39to receive the incentive. Any financial qualifications shall be stated
P4    1with a specificity sufficient to enable the recipient to reasonably
2determine his or her eligibility.

3(C) A statement that the owner or provider identified pursuant
4to subparagraph (A) of paragraph (1) reserves the right to provide
5a raincheck, or a substitute or like incentive, if those rights are
6reserved.

7(D) A statement that a recipient who receives an offered
8incentive may request and will receive evidence showing that the
9incentive provided matches the incentive randomly or otherwise
10selected for distribution to that recipient.

11(E) All other rules, terms, and conditions of the offer, plan, or
12program.

13(b) It is unlawful for any person making an offer subject to
14subdivision (a), or any employee, agent, or independent contractor
15employed or authorized by that person, to offer any incentive when
16the person knows or has reason to know that the offered item will
17not be available in a sufficient quantity based upon the reasonably
18anticipated response to the offer.

19(c) It is unlawful for any person making an offer subject to
20subdivision (a), or any employee, agent, or independent contractor
21employed or authorized by that person, to fail to provide any
22offered incentive which any recipient who has responded to the
23offer in the manner specified therein, who has performed the
24requirements disclosed therein, and who has met the qualifications
25described therein, is entitled to receive, unless the offered incentive
26is not reasonably available and the offer discloses the reservation
27of a right to provide a raincheck, or a like or substitute incentive,
28if the offered incentive is unavailable.

29(d) If the person making an offer subject to subdivision (a) is
30unable to provide an offered incentive because of limitations of
31supply, quantity, or quality that were not reasonably foreseeable
32or controllable by the person making the offer, the person making
33the offer shall inform the recipient of the recipient’s right to receive
34a raincheck for the incentive offered, unless the person making
35the offer knows or has reasonable basis for knowing that the
36incentive will not be reasonably available and shall inform the
37recipient of the recipient’s right to at least one of the following
38additional options:

39(1) The person making the offer will provide a like incentive
40 of equivalent or greater retail value or a raincheck therefor.

P5    1(2) The person making the offer will provide a substitute
2incentive of equivalent or greater retail value.

3(3) The person making the offer will provide a raincheck for
4the like or substitute incentive.

5(e) If a raincheck is provided, the person making an offer subject
6to subdivision (a) shall, within a reasonable time, and in no event
7later than 80 days, deliver the agreed incentive to the recipient’s
8address without additional cost or obligation to the recipient, unless
9the incentive for which the raincheck is provided remains
10unavailable because of limitations of supply, quantity, or quality
11not reasonably foreseeable or controllable by the person making
12the offer. In that case, the person making the offer shall, not later
13than 30 days after the expiration of the 80 days, deliver a like
14incentive of equal or greater retail value or, if an incentive is not
15reasonably available to the person making the offer, a substitute
16incentive of equal or greater retail value.

17(f) Upon the request of a recipient who has received or claims
18a right to receive any offered incentive, the person making an offer
19subject to subdivision (a) shall furnish to the person sufficient
20evidence showing that the incentive provided matches the incentive
21randomly or otherwise selected for distribution to that recipient.

22(g) It is unlawful for any person making an offer subject to
23subdivision (a), or any employee, agent, or independent contractor
24employed or authorized by that person, to:

25(1) Use any printing styles, graphics, layouts, text, colors, or
26formats on envelopes or on the offerbegin delete which, implies, createsend deletebegin insert that
27imply, createend insert
an appearance, or would lead a reasonable person to
28believe, that the offer originates from or is issued by or on behalf
29of a government or public agency, public utility, public
30organization, insurance company, credit reporting agency, bill
31collectingbegin delete companyend deletebegin insert company,end insert or law firm, unless the same is true.

32(2) Misrepresent the size, quantity, identity, value, or qualities
33of any incentive.

34(3) Misrepresent in any manner the odds of receiving any
35particular incentive.

36(4) Represent directly or by implication that the number of
37participants has been significantly limited or that any person has
38been selected to receive a particular incentive unless that is the
39fact.

P6    1(5) Label any offer a notice of termination or notice of
2cancellation.

3(6) Misrepresent, in any manner, the offer, plan,begin insert orend insert program or
4the affiliation, connection, association, or contractual relationship
5between the person making the offer and the owner or provider,
6if they are not the same.

7(h) If the major incentives are awarded or given at random, by
8the assignment of a number to the incentives, that number shall
9be actually assigned by the party contractually responsible for
10doing so. The person making an offer subject to subdivision (a)
11hereof, or the agent, employee, or independent contractor employed
12or authorized by that person, if any, shall maintain, for a period of
13one year after the date the offer is made, the records that show that
14the winning numbers or opportunity to receive the major incentives
15have been deposited in the mail or otherwise made available to
16recipients in accordance with the odds statement provided pursuant
17to subparagraph (C) of paragraph (1) of subdivision (a) hereof.
18The records shall be made available to the Attorney General within
1930 days after written request therefor. Postal receipt records,
20affidavits of mailing, or a list of winners or recipients of the major
21incentives shall be deemed to satisfy the requirements of this
22section.

23

SEC. 2.  

Section 50 of the Civil Code is amended to read:

24

50.  

begin delete Section Fifty. end deletebegin deleteend deletebegin delete end deleteAny necessary force may be used to protect
25from wrongful injury the person or property of oneself, or of a
26begin delete wife, husband,end deletebegin insert spouse,end insert child, parent, or other relative, or member
27of one’s family, or of a ward, servant, master, or guest.

28

SEC. 3.  

Section 51.3 of the Civil Code is amended to read:

29

51.3.  

(a) The Legislature finds and declares that this section
30is essential to establish and preserve specially designed accessible
31housing for senior citizens. There are senior citizens who need
32special living environments and services, and find that there is an
33inadequate supply of this type of housing in the state.

34(b) For the purposes of this section, the following definitions
35apply:

36(1) “Qualifying resident” or “senior citizen” means a person 62
37years of age or older, or 55 years of age or older in a senior citizen
38housing development.

39(2) “Qualified permanent resident” means a person who meets
40both of the following requirements:

P7    1(A) Was residing with the qualifying resident or senior citizen
2prior to the death, hospitalization, or other prolonged absence of,
3or the dissolution of marriage with, the qualifying resident or senior
4citizen.

5(B) Was 45 years of age or older, or was a spouse, cohabitant,
6or person providing primary physical or economic support to the
7qualifying resident or senior citizen.

8(3) “Qualified permanent resident” also means a disabled person
9or person with a disabling illness or injury who is a child or
10grandchild of the senior citizen or a qualified permanent resident
11as defined in paragraph (2) who needs to live with the senior citizen
12or qualified permanent resident because of the disabling condition,
13illness, or injury. For purposes of this section, “disabled” means
14a person who has a disability as defined in subdivision (b) of
15Section 54. A “disabling injury or illness” means an illness or
16injury which results in a condition meeting the definition of
17disability set forth in subdivision (b) of Section 54.

18(A) For any person who is a qualified permanent resident under
19this paragraph whose disabling condition ends, the owner, board
20of directors, or other governing body may require the formerly
21disabled resident to cease residing in the development upon receipt
22of six months’ written notice; provided, however, that the owner,
23board of directors, or other governing body may allow the person
24to remain a resident for up to one year after the disabling condition
25ends.

26(B) The owner, board of directors, or other governing body of
27the senior citizen housing development may take action to prohibit
28or terminate occupancy by a person who is a qualified permanent
29resident under this paragraph if the owner, board of directors, or
30other governing body finds, based on credible and objective
31evidence, that the person is likely to pose a significant threat to
32the health or safety of others that cannot be ameliorated by means
33of a reasonable accommodation; provided, however, that the action
34to prohibit or terminate the occupancy may be taken only after
35doing both of the following:

36(i) Providing reasonable notice to and an opportunity to be heard
37for the disabled person whose occupancy is being challenged, and
38reasonable notice to the coresident parent or grandparent of that
39person.

P8    1(ii) Giving due consideration to the relevant, credible, and
2objective information provided in the hearing. The evidence shall
3be taken and held in a confidential manner, pursuant to a closed
4session, by the owner, board of directors, or other governing body
5in order to preserve the privacy of the affected persons.

6The affected persons shall be entitled to have present at the
7hearing an attorney or any other person authorized by them to
8speak on their behalf or to assist them in the matter.

9(4) “Senior citizen housing development” means a residential
10development developed, substantially rehabilitated, or substantially
11renovated for, senior citizens that has at least 35 dwelling units.
12Any senior citizen housing development which is required to obtain
13a public report under Section 11010 of the Business and Professions
14Code and which submits its application for a public report after
15July 1, 2001, shall be required to have been issued a public report
16as a senior citizen housing development under Section 11010.05
17of the Business and Professions Code. No housing development
18constructed prior to January 1, 1985, shall fail to qualify as a senior
19citizen housing development because it was not originally
20developed or put to use for occupancy by senior citizens.

21(5) “Dwelling unit” or “housing” means any residential
22accommodation other than a mobilehome.

23(6) “Cohabitant” refers to persons who live together asbegin delete husband
24and wife,end delete
begin insert spousesend insert or persons who are domestic partners within the
25meaning of Section 297 of the Family Code.

26(7) “Permitted health care resident” means a person hired to
27provide live-in, long-term, or terminal health care to a qualifying
28resident, or a family member of the qualifying resident providing
29that care. For the purposes of this section, the care provided by a
30permitted health care resident must be substantial in nature and
31must provide either assistance with necessary daily activities or
32medical treatment, or both.

33A permitted health care resident shall be entitled to continue his
34or her occupancy, residency, or use of the dwelling unit as a
35permitted resident in the absence of the senior citizen from the
36dwelling unit only if both of the following are applicable:

37(A) The senior citizen became absent from the dwelling due to
38hospitalization or other necessary medical treatment and expects
39to return to his or her residence within 90 days from the date the
40absence began.

P9    1(B) The absent senior citizen or an authorized person acting for
2the senior citizen submits a written request to the owner, board of
3directors, or governing board stating that the senior citizen desires
4that the permitted health care resident be allowed to remain in
5order to be present when the senior citizen returns to reside in the
6development.

7Upon written request by the senior citizen or an authorized
8person acting for the senior citizen, the owner, board of directors,
9or governing board shall have the discretion to allow a permitted
10health care resident to remain for a time period longer than 90 days
11from the date that the senior citizen’s absence began, if it appears
12that the senior citizen will return within a period of time not to
13exceed an additional 90 days.

14(c) The covenants, conditions, and restrictions and other
15documents or written policy shall set forth the limitations on
16occupancy, residency, or use on the basis of age. Any such
17limitation shall not be more exclusive than to require that one
18person in residence in each dwelling unit may be required to be a
19senior citizen and that each other resident in the same dwelling
20unit may be required to be a qualified permanent resident, a
21permitted health care resident, or a person under 55 years of age
22whose occupancy is permitted under subdivision (h) of this section
23or under subdivision (b) of Section 51.4. That limitation may be
24less exclusive, but shall at least require that the persons
25commencing any occupancy of a dwelling unit include a senior
26citizen who intends to reside in the unit as his or her primary
27residence on a permanent basis. The application of the rules set
28forth in this subdivision regarding limitations on occupancy may
29result in less than all of the dwellings being actually occupied by
30a senior citizen.

31(d) The covenants, conditions, and restrictions or other
32documents or written policy shall permit temporary residency, as
33a guest of a senior citizen or qualified permanent resident, by a
34person of less than 55 years of age for periods of time, not less
35than 60 days in any year, that are specified in the covenants,
36conditions, and restrictions or other documents or written policy.

37(e) Upon the death or dissolution of marriage, or upon
38hospitalization, or other prolonged absence of the qualifying
39resident, any qualified permanent resident shall be entitled to
40continue his or her occupancy, residency, or use of the dwelling
P10   1unit as a permitted resident. This subdivision shall not apply to a
2permitted health care resident.

3(f) The condominium, stock cooperative, limited-equity housing
4cooperative, planned development, or multiple-family residential
5rental property shall have been developed for, and initially been
6put to use as, housing for senior citizens, or shall have been
7substantially rehabilitated or renovated for, and immediately
8afterward put to use as, housing for senior citizens, as provided in
9this section; provided, however, that no housing development
10constructed prior to January 1, 1985, shall fail to qualify as a senior
11citizen housing development because it was not originally
12developed for or originally put to use for occupancy by senior
13citizens.

14(g) The covenants, conditions, and restrictions or other
15documents or written policies applicable to any condominium,
16stock cooperative, limited-equity housing cooperative, planned
17development, or multiple-family residential property that contained
18age restrictions on January 1, 1984, shall be enforceable only to
19the extent permitted by this section, notwithstanding lower age
20restrictions contained in those documents or policies.

21(h) Any person who has the right to reside in, occupy, or use
22the housing or an unimproved lot subject to this section on January
231, 1985, shall not be deprived of the right to continue that
24residency, occupancy, or use as the result of the enactment of this
25section.

26(i) The covenants, conditions, and restrictions or other
27documents or written policy of the senior citizen housing
28development shall permit the occupancy of a dwelling unit by a
29permitted health care resident during any period that the person is
30actually providing live-in, long-term, or hospice health care to a
31qualifying resident for compensation. For purposes of this
32subdivision, the term “for compensation” shall include provisions
33of lodging and food in exchange for care.

34(j) Notwithstanding any other provision of this section, this
35section shall not apply to the County of Riverside.

36

SEC. 4.  

Section 51.11 of the Civil Code is amended to read:

37

51.11.  

(a) The Legislature finds and declares that this section
38is essential to establish and preserve housing for senior citizens.
39There are senior citizens who need special living environments,
P11   1and find that there is an inadequate supply of this type of housing
2in the state.

3(b) For the purposes of this section, the following definitions
4apply:

5(1) “Qualifying resident” or “senior citizen” means a person 62
6years of age or older, or 55 years of age or older in a senior citizen
7housing development.

8(2) “Qualified permanent resident” means a person who meets
9both of the following requirements:

10(A) Was residing with the qualifying resident or senior citizen
11prior to the death, hospitalization, or other prolonged absence of,
12or the dissolution of marriage with, the qualifying resident or senior
13citizen.

14(B) Was 45 years of age or older, or was a spouse, cohabitant,
15or person providing primary physical or economic support to the
16qualifying resident or senior citizen.

17(3) “Qualified permanent resident” also means a disabled person
18or person with a disabling illness or injury who is a child or
19grandchild of the senior citizen or a qualified permanent resident
20as defined in paragraph (2) who needs to live with the senior citizen
21or qualified permanent resident because of the disabling condition,
22illness, or injury. For purposes of this section, “disabled” means
23a person who has a disability as defined in subdivision (b) of
24Section 54. A “disabling injury or illness” means an illness or
25injury which results in a condition meeting the definition of
26disability set forth in subdivision (b) of Section 54.

27(A) For any person who is a qualified permanent resident under
28paragraph (3) whose disabling condition ends, the owner, board
29of directors, or other governing body may require the formerly
30disabled resident to cease residing in the development upon receipt
31of six months’ written notice; provided, however, that the owner,
32board of directors, or other governing body may allow the person
33to remain a resident for up to one year, after the disabling condition
34ends.

35(B) The owner, board of directors, or other governing body of
36the senior citizen housing development may take action to prohibit
37or terminate occupancy by a person who is a qualified permanent
38resident under paragraph (3) if the owner, board of directors, or
39other governing body finds, based on credible and objective
40evidence, that the person is likely to pose a significant threat to
P12   1the health or safety of others that cannot be ameliorated by means
2of a reasonable accommodation; provided, however, that action
3to prohibit or terminate the occupancy may be taken only after
4doing both of the following:

5(i) Providing reasonable notice to and an opportunity to be heard
6for the disabled person whose occupancy is being challenged, and
7reasonable notice to the coresident parent or grandparent of that
8person.

9(ii) Giving due consideration to the relevant, credible, and
10objective information provided in that hearing. The evidence shall
11be taken and held in a confidential manner, pursuant to a closed
12session, by the owner, board of directors, or other governing body
13in order to preserve the privacy of the affected persons.

14The affected persons shall be entitled to have present at the
15hearing an attorney or any other person authorized by them to
16speak on their behalf or to assist them in the matter.

17(4) “Senior citizen housing development” means a residential
18development developed with more than 20 units as a senior
19community by its developer and zoned as a senior community by
20a local governmental entity, or characterized as a senior community
21in its governing documents, as these are defined in Section 4150,
22or qualified as a senior community under the federal Fair Housing
23Amendments Act of 1988, as amended. Any senior citizen housing
24development which is required to obtain a public report under
25Section 11010 of the Business and Professions Code and which
26submits its application for a public report after July 1, 2001, shall
27be required to have been issued a public report as a senior citizen
28housing development under Section 11010.05 of the Business and
29Professions Code.

30(5) “Dwelling unit” or “housing” means any residential
31accommodation other than a mobilehome.

32(6) “Cohabitant” refers to persons who live together asbegin delete husband
33and wife,end delete
begin insert spousesend insert or persons who are domestic partners within the
34meaning of Section 297 of the Family Code.

35(7) “Permitted health care resident” means a person hired to
36provide live-in, long-term, or terminal health care to a qualifying
37resident, or a family member of the qualifying resident providing
38that care. For the purposes of this section, the care provided by a
39permitted health care resident must be substantial in nature and
P13   1must provide either assistance with necessary daily activities or
2medical treatment, or both.

3A permitted health care resident shall be entitled to continue his
4or her occupancy, residency, or use of the dwelling unit as a
5permitted resident in the absence of the senior citizen from the
6dwelling unit only if both of the following are applicable:

7(A) The senior citizen became absent from the dwelling due to
8hospitalization or other necessary medical treatment and expects
9to return to his or her residence within 90 days from the date the
10absence began.

11(B) The absent senior citizen or an authorized person acting for
12the senior citizen submits a written request to the owner, board of
13directors, or governing board stating that the senior citizen desires
14that the permitted health care resident be allowed to remain in
15order to be present when the senior citizen returns to reside in the
16development.

17Upon written request by the senior citizen or an authorized
18person acting for the senior citizen, the owner, board of directors,
19or governing board shall have the discretion to allow a permitted
20health care resident to remain for a time period longer than 90 days
21from the date that the senior citizen’s absence began, if it appears
22that the senior citizen will return within a period of time not to
23exceed an additional 90 days.

24(c) The covenants, conditions, and restrictions and other
25documents or written policy shall set forth the limitations on
26occupancy, residency, or use on the basis of age. Any limitation
27shall not be more exclusive than to require that one person in
28residence in each dwelling unit may be required to be a senior
29citizen and that each other resident in the same dwelling unit may
30be required to be a qualified permanent resident, a permitted health
31care resident, or a person under 55 years of age whose occupancy
32is permitted under subdivision (g) of this section or subdivision
33(b) of Section 51.12. That limitation may be less exclusive, but
34shall at least require that the persons commencing any occupancy
35of a dwelling unit include a senior citizen who intends to reside in
36 the unit as his or her primary residence on a permanent basis. The
37application of the rules set forth in this subdivision regarding
38limitations on occupancy may result in less than all of the dwellings
39being actually occupied by a senior citizen.

P14   1(d) The covenants, conditions, and restrictions or other
2documents or written policy shall permit temporary residency, as
3a guest of a senior citizen or qualified permanent resident, by a
4person of less than 55 years of age for periods of time, not more
5than 60 days in any year, that are specified in the covenants,
6conditions, and restrictions or other documents or written policy.

7(e) Upon the death or dissolution of marriage, or upon
8hospitalization, or other prolonged absence of the qualifying
9resident, any qualified permanent resident shall be entitled to
10continue his or her occupancy, residency, or use of the dwelling
11unit as a permitted resident. This subdivision shall not apply to a
12permitted health care resident.

13(f) The covenants, conditions, and restrictions or other
14documents or written policies applicable to any condominium,
15stock cooperative, limited-equity housing cooperative, planned
16development, or multiple-family residential property that contained
17age restrictions on January 1, 1984, shall be enforceable only to
18the extent permitted by this section, notwithstanding lower age
19 restrictions contained in those documents or policies.

20(g) Any person who has the right to reside in, occupy, or use
21the housing or an unimproved lot subject to this section on or after
22January 1, 1985, shall not be deprived of the right to continue that
23residency, occupancy, or use as the result of the enactment of this
24section by Chapter 1147 of the Statutes of 1996.

25(h) A housing development may qualify as a senior citizen
26housing development under this section even though, as of January
271, 1997, it does not meet the definition of a senior citizen housing
28development specified in subdivision (b), if the development
29complies with that definition for every unit that becomes occupied
30after January 1, 1997, and if the development was once within that
31definition, and then became noncompliant with the definition as
32the result of any one of the following:

33(1) The development was ordered by a court or a local, state,
34or federal enforcement agency to allow persons other than
35qualifying residents, qualified permanent residents, or permitted
36health care residents to reside in the development.

37(2) The development received a notice of a pending or proposed
38action in, or by, a court, or a local, state, or federal enforcement
39agency, which action could have resulted in the development being
40ordered by a court or a state or federal enforcement agency to allow
P15   1persons other than qualifying residents, qualified permanent
2residents, or permitted health care residents to reside in the
3development.

4(3) The development agreed to allow persons other than
5qualifying residents, qualified permanent residents, or permitted
6health care residents to reside in the development by entering into
7a stipulation, conciliation agreement, or settlement agreement with
8a local, state, or federal enforcement agency or with a private party
9who had filed, or indicated an intent to file, a complaint against
10the development with a local, state, or federal enforcement agency,
11or file an action in a court.

12(4) The development allowed persons other than qualifying
13residents, qualified permanent residents, or permitted health care
14residents to reside in the development on the advice of counsel in
15order to prevent the possibility of an action being filed by a private
16party or by a local, state, or federal enforcement agency.

17(i) The covenants, conditions, and restrictions or other
18documents or written policy of the senior citizen housing
19development shall permit the occupancy of a dwelling unit by a
20permitted health care resident during any period that the person is
21actually providing live-in, long-term, or hospice health care to a
22qualifying resident for compensation.

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

24

SEC. 5.  

Section 682 of the Civil Code is amended to read:

25

682.  

The ownership of property by several persons is either:

261. Of joint interest;

272. Of partnership interests;

283. Of interests in common;

294. Of community interest ofbegin delete husband and wife.end deletebegin insert spouses.end insert

30

SEC. 6.  

Section 682.1 of the Civil Code is amended to read:

31

682.1.  

(a) Community property ofbegin delete a husband and wife,end deletebegin insert spouses,end insert
32 when expressly declared in the transfer document to be community
33property with right of survivorship, and which may be accepted
34in writing on the face of the document by a statement signed or
35initialed by the grantees, shall, upon the death of one of the
36spouses, pass to the survivor, without administration, pursuant to
37the terms of the instrument, subject to the same procedures, as
38property held in joint tenancy. Prior to the death of either spouse,
39the right of survivorship may be terminated pursuant to the same
40procedures by which a joint tenancy may be severed. Part I
P16   1(commencing with Section 5000) of Division 5 of the Probate
2Code and Chapter 2 (commencing with Section 13540), Chapter
33 (commencing with Section 13550) and Chapter 3.5 (commencing
4with Section 13560) of Part 2 of Division 8 of the Probate Code
5apply to this property.

6(b) This section does not apply to a joint account in a financial
7institution to which Part 2 (commencing with Section 5100) of
8Division 5 of the Probate Code applies.

9(c) This section shall become operative on July 1, 2001, and
10shall apply to instruments created on or after that date.

11

SEC. 7.  

Section 683 of the Civil Code is amended to read:

12

683.  

(a) A joint interest is one owned by two or more persons
13in equal shares, by a title created by a single will or transfer, when
14expressly declared in the will or transfer to be a joint tenancy, or
15by transfer from a sole owner to himself or herself and others, or
16from tenants in common or joint tenants to themselves or some of
17them, or to themselves or any of them and others, or frombegin delete a
18husband and wife,end delete
begin insert spouses,end insert when holding title as community
19property or otherwise to themselves or to themselves and others
20or to one of them and to another or others, when expressly declared
21in the transfer to be a joint tenancy, or when granted or devised to
22executors or trustees as joint tenants. A joint tenancy in personal
23property may be created by a written transfer, instrument, or
24agreement.

25(b) Provisions of this section do not apply to a joint account in
26a financial institution if Part 2 (commencing with Section 5100)
27of Division 5 of the Probate Code applies to such account.

28

SEC. 8.  

Section 1099 of the Civil Code is amended to read:

29

1099.  

(a) As soon as practical before transfer of title of any
30real property or the execution of a real property sales contract as
31defined in Section 2985, the transferor, fee owner, or his agent,
32shall deliver to the transferee a copy of a structural pest control
33inspection report prepared pursuant to Section 8516 of the Business
34and Professions Code upon which any certification in accordance
35with Section 8519 of the Business and Professions Code may be
36made, provided that certification or preparation of a report is a
37condition of the contract effecting that transfer, or is a requirement
38imposed as a condition of financing such transfer.

39(b) If a notice of work completed as contemplated by Section
408518 of the Business and Professions Code, indicating action by
P17   1a structural pest control licensee in response to an inspection report
2delivered or to be delivered under provisions of subdivision (a),
3or a certification pursuant to Section 8519 of the Business and
4Professions Code, has been received by a transferor or his agent
5before transfer of title or execution of a real property sales contract
6as defined in Section 2985, it shall be furnished to the transferee
7as soon as practical before transfer of title or the execution of such
8real property sales contract.

9(c) Delivery to a transferee as used in this section means delivery
10in person or by mail to the transferee himself or any person
11authorized to act for him in the transaction or to such additional
12transferees who have requested such delivery from the transferor
13or his agent in writing. For the purposes of this section, delivery
14to eitherbegin delete husband or wifeend deletebegin insert spouseend insert shall be deemed delivery to a
15transferee, unless the contract affecting the transfer states
16otherwise.

17(d) No transfer of title of real property shall be invalidated solely
18because of the failure of any person to comply with the provisions
19of this section unless such failure is an act or omission which would
20be a valid ground for rescission of such transfer in the absence of
21this section.

22

SEC. 9.  

Section 1569 of the Civil Code is amended to read:

23

1569.  

Duress consists in:

241. Unlawful confinement of the person of the party, or of the
25begin delete husband or wifeend deletebegin insert spouseend insert of such party, or of an ancestor, descendant,
26or adopted child of suchbegin delete party, husband,end deletebegin insert partyend insert orbegin delete wife;end deletebegin insert spouse;end insert

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

283. Confinement of such person, lawful in form, but fraudulently
29obtained, or fraudulently made unjustlybegin delete harrassingend deletebegin insert harassingend insert or
30oppressive.

31

SEC. 10.  

Section 3390 of the Civil Code is amended to read:

32

3390.  

The following obligations cannot be specifically
33enforced:

341. An obligation to render personal service;

352. An obligation to employ another in personal service;

363. An agreement to perform an act which the party has not power
37lawfully to perform when required to do so;

384. An agreement to procure the act or consent of thebegin delete wifeend deletebegin insert spouseend insert
39 of the contracting party, or of any other third person; or,

P18   15. An agreement, the terms of which are not sufficiently certain
2to make the precise act which is to be done clearly ascertainable.

3

SEC. 11.  

Section 116.540 of the Code of Civil Procedure is
4amended to read:

5

116.540.  

(a) Except as permitted by this section, no individual
6other than the plaintiff and the defendant may take part in the
7conduct or defense of a small claims action.

8(b) Except as additionally provided in subdivision (i), a
9corporation may appear and participate in a small claims action
10only through a regular employee, or a duly appointed or elected
11officer or director, who is employed, appointed, or elected for
12purposes other than solely representing the corporation in small
13claims court.

14(c) A party who is not a corporation or a natural person may
15appear and participate in a small claims action only through a
16regular employee, or a duly appointed or elected officer or director,
17or in the case of a partnership, a partner, engaged for purposes
18other than solely representing the party in small claims court.

19(d) If a party is an individual doing business as a sole
20proprietorship, the party may appear and participate in a small
21claims action by a representative and without personally appearing
22if both of the following conditions are met:

23(1) The claim can be proved or disputed by evidence of an
24account that constitutes a business record as defined in Section
251271 of the Evidence Code, and there is no other issue of fact in
26the case.

27(2) The representative is a regular employee of the party for
28purposes other than solely representing the party in small claims
29actions and is qualified to testify to the identity and mode of
30preparation of the business record.

31(e) A plaintiff is not required to personally appear, and may
32submit declarations to serve as evidence supporting his or her claim
33or allow another individual to appear and participate on his or her
34behalf, if (1) the plaintiff is serving on active duty in the United
35States Armed Forces outside this state, (2) the plaintiff was
36assigned to his or her duty station after his or her claim arose, (3)
37the assignment is for more than six months, (4) the representative
38is serving without compensation, and (5) the representative has
39appeared in small claims actions on behalf of others no more than
40four times during the calendar year. The defendant may file a claim
P19   1in the same action in an amount not to exceed the jurisdictional
2limits stated in Sections 116.220, 116.221, and 116.231.

3(f) A party incarcerated in a county jail, a Department of
4Corrections and Rehabilitation facility, or a Division of Juvenile
5Facilities facility is not required to personally appear, and may
6submit declarations to serve as evidence supporting his or her
7claim, or may authorize another individual to appear and participate
8on his or her behalf if that individual is serving without
9compensation and has appeared in small claims actions on behalf
10of others no more than four times during the calendar year.

11(g) A defendant who is a nonresident owner of real property
12may defend against a claim relating to that property without
13personally appearing by (1) submitting written declarations to
14serve as evidence supporting his or her defense, (2) allowing
15another individual to appear and participate on his or her behalf if
16that individual is serving without compensation and has appeared
17in small claims actions on behalf of others no more than four times
18during the calendar year, or (3) taking the action described in both
19(1) and (2).

20(h) A party who is an owner of rental real property may appear
21and participate in a small claims action through a property agent
22under contract with the owner to manage the rental of that property,
23if (1) the owner has retained the property agent principally to
24manage the rental of that property and not principally to represent
25the owner in small claims court, and (2) the claim relates to the
26rental property.

27(i) A party that is an association created to manage a common
28interest development, as defined in Section 4100 or in Sections
296528 and 6534 of the Civil Code, may appear and participate in a
30small claims action through an agent, a management company
31representative, or bookkeeper who appears on behalf of that
32association.

33(j) At the hearing of a small claims action, the court shall require
34any individual who is appearing as a representative of a party under
35subdivisions (b) to (i), inclusive, to file a declaration stating (1)
36that the individual is authorized to appear for the party, and (2)
37the basis for that authorization. If the representative is appearing
38under subdivision (b), (c), (d), (h), or (i), the declaration also shall
39state that the individual is not employed solely to represent the
40party in small claims court. If the representative is appearing under
P20   1subdivision (e), (f), or (g), the declaration also shall state that the
2representative is serving without compensation, and has appeared
3in small claims actions on behalf of others no more than four times
4during the calendar year.

5(k) Abegin delete husband or wifeend deletebegin insert spouseend insert who sues or who is sued with his
6or her spouse may appear and participate on behalf of his or her
7spouse if (1) the claim is a joint claim, (2) the represented spouse
8has given his or her consent, and (3) the court determines that the
9interests of justice would be served.

10(l) If the court determines that a party cannot properly present
11his or her claim or defense and needs assistance, the court may in
12its discretion allow another individual to assist that party.

13(m) Nothing in this section shall operate or be construed to
14authorize an attorney to participate in a small claims action except
15as expressly provided in Section 116.530.

16

SEC. 12.  

Section 371 of the Code of Civil Procedure is
17amended to read:

18

371.  

Ifbegin delete a husband and wifeend deletebegin insert spousesend insert are sued together, each may
19defend for his or her own right, but if one spouse neglects to
20defend, the other spouse may defend for that spouse’s right also.

21

SEC. 13.  

Section 703.140 of the Code of Civil Procedure is
22amended to read:

23

703.140.  

(a) In a case under Title 11 of the United States Code,
24all of the exemptions provided by this chapter, including the
25homestead exemption, other than the provisions of subdivision (b)
26are applicable regardless of whether there is a money judgment
27against the debtor or whether a money judgment is being enforced
28by execution sale or any other procedure, but the exemptions
29provided by subdivision (b) may be elected in lieu of all other
30exemptions provided by this chapter, as follows:

31(1) Ifbegin delete a husband and wifeend deletebegin insert spousesend insert are joined in the petition, they
32jointly may elect to utilize the applicable exemption provisions of
33this chapter other than the provisions of subdivision (b), or to
34utilize the applicable exemptions set forth in subdivision (b), but
35not both.

36(2) If the petition is filed individually, and not jointly, for a
37begin delete husband or a wife,end deletebegin insert spouse,end insert the exemptions provided by this chapter
38other than the provisions of subdivision (b) are applicable, except
39that, if bothbegin insert ofend insert thebegin delete husband and the wifeend deletebegin insert spousesend insert effectively waive
40in writing the right to claim, during the period the case commenced
P21   1by filing the petition is pending, the exemptions provided by the
2applicable exemption provisions of this chapter, other than
3subdivision (b), in any case commenced by filing a petition for
4either of them under Title 11 of the United States Code, then they
5may elect to instead utilize the applicable exemptions set forth in
6subdivision (b).

7(3) If the petition is filed for an unmarried person, that person
8may elect to utilize the applicable exemption provisions of this
9chapter other than subdivision (b), or to utilize the applicable
10exemptions set forth in subdivision (b), but not both.

11(b) The following exemptions may be elected as provided in
12subdivision (a):

13(1) The debtor’s aggregate interest, not to exceed twenty-four
14thousand sixty dollars ($24,060) in value, in real property or
15personal property that the debtor or a dependent of the debtor uses
16as a residence, in a cooperative that owns property that the debtor
17or a dependent of the debtor uses as a residence.

18(2) The debtor’s interest, not to exceed four thousand eight
19hundred dollars ($4,800) in value, in one or more motor vehicles.

20(3) The debtor’s interest, not to exceed six hundred dollars
21($600) in value in any particular item, in household furnishings,
22household goods, wearing apparel, appliances, books, animals,
23crops, or musical instruments, that are held primarily for the
24personal, family, or household use of the debtor or a dependent of
25the debtor.

26(4) The debtor’s aggregate interest, not to exceed one thousand
27four hundred twenty-five dollars ($1,425) in value, in jewelry held
28primarily for the personal, family, or household use of the debtor
29or a dependent of the debtor.

30(5) The debtor’s aggregate interest, not to exceed in value one
31thousand two hundred eighty dollars ($1,280) plus any unused
32amount of the exemption provided under paragraph (1), in any
33property.

34(6) The debtor’s aggregate interest, not to exceed seven thousand
35one hundred seventy-five dollars ($7,175) in value, in any
36implements, professional books, or tools of the trade of the debtor
37or the trade of a dependent of the debtor.

38(7) Any unmatured life insurance contract owned by the debtor,
39other than a credit life insurance contract.

P22   1(8) The debtor’s aggregate interest, not to exceed in value twelve
2thousand eight hundred sixty dollars ($12,860), in any accrued
3dividend or interest under, or loan value of, any unmatured life
4insurance contract owned by the debtor under which the insured
5is the debtor or an individual of whom the debtor is a dependent.

6(9) Professionally prescribed health aids for the debtor or a
7dependent of the debtor.

8(10) The debtor’s right to receive any of the following:

9(A) A social security benefit, unemployment compensation, or
10a local public assistance benefit.

11(B) A veterans’ benefit.

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

13(D) Alimony, support, or separate maintenance, to the extent
14reasonably necessary for the support of the debtor and any
15dependent of the debtor.

16(E) A payment under a stock bonus, pension, profit-sharing,
17annuity, or similar plan or contract on account of illness, disability,
18death, age, or length of service, to the extent reasonably necessary
19for the support of the debtor and any dependent of the debtor,
20unless all of the following apply:

21(i) That plan or contract was established by or under the auspices
22of an insider that employed the debtor at the time the debtor’s
23rights under the plan or contract arose.

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

25(iii) That plan or contract does not qualify under Section 401(a),
26403(a), 403(b), 408, or 408A of the Internal Revenue Code of
271986.

28(11) The debtor’s right to receive, or property that is traceable
29to, any of the following:

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

31(B) A payment on account of the wrongful death of an individual
32of whom the debtor was a dependent, to the extent reasonably
33necessary for the support of the debtor and any dependent of the
34debtor.

35(C) A payment under a life insurance contract that insured the
36life of an individual of whom the debtor was a dependent on the
37date of that individual’s death, to the extent reasonably necessary
38for the support of the debtor and any dependent of the debtor.

P23   1(D) A payment, not to exceed twenty-four thousand sixty dollars
2($24,060), on account of personal bodily injury of the debtor or
3an individual of whom the debtor is a dependent.

4(E) A payment in compensation of loss of future earnings of
5the debtor or an individual of whom the debtor is or was a
6dependent, to the extent reasonably necessary for the support of
7the debtor and any dependent of the debtor.

8

SEC. 14.  

Section 704.930 of the Code of Civil Procedure is
9amended to read:

10

704.930.  

(a) A homestead declaration recorded pursuant to
11this article shall contain all of the following:

12(1) The name of the declared homestead owner.begin delete A husband and
13wifeend delete
begin insert Spousesend insert both may be named as declared homestead owners
14in the same homestead declaration if each owns an interest in the
15dwelling selected as the declared homestead.

16(2) A description of the declared homestead.

17(3) A statement that the declared homestead is the principal
18dwelling of the declared homestead owner or such person’s spouse,
19and that the declared homestead owner or such person’s spouse
20resides in the declared homestead on the date the homestead
21declaration is recorded.

22(b) The homestead declaration shall be executed and
23acknowledged in the manner of an acknowledgment of a
24conveyance of real property by at least one of the following
25persons:

26(1) The declared homestead owner.

27(2) The spouse of the declared homestead owner.

28(3) The guardian or conservator of the person or estate of either
29of the persons listed in paragraph (1) or (2). The guardian or
30conservator may execute, acknowledge, and record a homestead
31declaration without the need to obtain court authorization.

32(4) A person acting under a power of attorney or otherwise
33authorized to act on behalf of a person listed in paragraph (1) or
34(2).

35(c) The homestead declaration shall include a statement that the
36facts stated in the homestead declaration are known to be true as
37of the personal knowledge of the person executing and
38acknowledging the homestead declaration. If the homestead
39declaration is executed and acknowledged by a person listed in
40paragraph (3) or (4) of subdivision (b), it shall also contain a
P24   1statement that the person has authority to so act on behalf of the
2declared homestead owner or the spouse of the declared homestead
3owner and the source of the person’s authority.

4

SEC. 15.  

Section 158 of the Corporations Code is amended to
5read:

6

158.  

(a) “Close corporation” means a corporation, including
7a close social purpose corporation, whose articles contain, in
8addition to the provisions required by Section 202, a provision that
9all of the corporation’s issued shares of all classes shall be held of
10record by not more than a specified number of persons, not
11exceeding 35, and a statement “This corporation is a close
12corporation.”

13(b) The special provisions referred to in subdivision (a) may be
14included in the articles by amendment, but if such amendment is
15adopted after the issuance of shares only by the affirmative vote
16of all of the issued and outstanding shares of all classes.

17(c) The special provisions referred to in subdivision (a) may be
18 deleted from the articles by amendment, or the number of
19shareholders specified may be changed by amendment, but if such
20amendment is adopted after the issuance ofbegin delete sharesend deletebegin insert shares,end insert only by
21the affirmative vote of at least two-thirds of each class of the
22outstanding shares; provided, however, that the articles may
23provide for a lesser vote, but not less than a majority of the
24outstanding shares, or may deny a vote to any class, or both.

25(d) In determining the number of shareholders for the purposes
26of the provision in the articles authorized by this section,begin delete a husbandend delete
27begin insert spousesend insert andbegin delete wife andend delete the personal representative of either shall be
28counted as one regardless of how shares may be held by either or
29both of them, a trust or personal representative of a decedent
30holding shares shall be counted as one regardless of the number
31of trustees orbegin delete beneficiariesend deletebegin insert beneficiaries,end insert and a partnership or
32corporation or business association holding shares shall be counted
33as one (except that any such trust or entity the primary purpose of
34which was the acquisition or voting of the shares shall be counted
35according to the number of beneficial interests therein).

36(e) A corporation shall cease to be a close corporation upon the
37filing of an amendment to its articles pursuant to subdivision (c)
38begin delete orend deletebegin insert or,end insert if it shall have more than the maximum number of holders
39of record of its shares specified in its articles as a result of an inter
40vivos transfer of shares which is not void under subdivision (d) of
P25   1Section 418, the transfer of shares on distribution by will or
2pursuant to the laws of descent and distribution, the dissolution of
3a partnership or corporation or businessbegin delete associationend deletebegin insert association,end insert
4 or the termination of a trust which holds shares, by court decree
5upon dissolution of a marriage or otherwise by operation of law.
6Promptly upon acquiring more than the specified number of holders
7of record of its shares, a close corporation shall execute and file
8an amendment to its articles deleting the special provisions referred
9to in subdivision (a) and deleting any other provisions not
10permissible for a corporation which is not a close corporation,
11which amendment shall be promptly approved and filed by the
12board and need not be approved by the outstanding shares.

13(f) Nothing contained in this section shall invalidate any
14agreement among the shareholders to vote for the deletion from
15the articles of the special provisions referred to in subdivision (a)
16 upon the lapse of a specified period of time or upon the occurrence
17of a certain event or condition or otherwise.

18(g) The following sections contain specific references to close
19corporations: Sections 186, 202, 204, 300, 418, 421, 1111, 1201,
201800, and 1904.

21

SEC. 16.  

Section 704 of the Corporations Code is amended to
22read:

23

704.  

If shares stand of record in the names of two or more
24persons, whether fiduciaries, members of a partnership, joint
25tenants, tenants in common,begin delete husband and wifeend deletebegin insert spousesend insert as
26community property, tenants by the entirety, voting trustees,
27persons entitled to vote under a shareholder voting agreement or
28otherwise, or if two or more persons (including proxyholders) have
29the same fiduciary relationship respecting the same shares, unless
30the secretary of the corporation is given written notice to the
31contrary and is furnished with a copy of the instrument or order
32appointing them or creating the relationship wherein it is so
33provided, their acts with respect to voting shall have the following
34effect:


35(1) If only one votes, such act binds all;


36(2) If more than one vote, the act of the majority so voting
37binds all;


38(3) If more than one vote, but the vote is evenly split on any
39particular matter, each faction may vote the securities in question
40proportionately.

P26   1
2If the instrument so filed or the registration of the shares shows
3that any such tenancy is held in unequal interests, a majority or
4even split for the purpose of this section shall be a majority or even
5split in interest.

6

SEC. 17.  

Section 5612 of the Corporations Code is amended
7to read:

8

5612.  

If a membership stands of record in the names of two or
9more persons, whether fiduciaries, members of a partnership, joint
10tenants, tenants in common,begin delete husband and wifeend deletebegin insert spousesend insert as
11community property, tenants by the entirety, or otherwise, or if
12two or more persons (including proxyholders) have the same
13fiduciary relationship respecting the same membership, unless the
14secretary of the corporation is given written notice to the contrary
15and is furnished with a copy of the instrument or order appointing
16them or creating the relationship wherein it is so provided, their
17acts with respect to voting shall have the following effect:

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

19(b) If more than one vote, the act of the majority so voting binds
20all.

21

SEC. 18.  

Section 7612 of the Corporations Code is amended
22to read:

23

7612.  

If a membership stands of record in the names of two or
24more persons, whether fiduciaries, members of a partnership, joint
25tenants, tenants in common,begin delete husband and wifeend deletebegin insert spousesend insert as
26community property, tenants by the entirety, persons entitled to
27vote under a voting agreement or otherwise, or if two or more
28persons (including proxyholders) have the same fiduciary
29relationship respecting the same membership, unless the secretary
30of the corporation is given written notice to the contrary and is
31furnished with a copy of the instrument or order appointing them
32or creating the relationship wherein it is so provided, their acts
33with respect to voting shall have the following effect:

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

35(b) If more than one vote, the act of the majority so voting binds
36all.

37

SEC. 19.  

Section 12482 of the Corporations Code is amended
38to read:

39

12482.  

Unless otherwise provided in the articles or bylaws, if
40a membership stands of record in the names of two or more
P27   1persons, whether fiduciaries, members of a partnership, joint
2tenants, tenants in common,begin delete husband and wifeend deletebegin insert spousesend insert as
3community property, tenants by the entirety, persons entitled to
4vote under a voting agreement or otherwise, or if two or more
5persons have the same fiduciary relationship respecting the same
6membership, unless the secretary of the corporation is given written
7notice to the contrary and is furnished with a copy of the instrument
8or order appointing them or creating the relationship wherein it is
9so provided, their acts with respect to voting shall have the
10following effect:

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

12(b) If more than one vote, the act of the majority so voting binds
13all.

14

SEC. 20.  

Section 25102 of the Corporations Code is amended
15to read:

16

25102.  

The following transactions are exempted from the
17provisions of Section 25110:

18(a) Any offer (but not a sale) not involving any public offering
19and the execution and delivery of any agreement for the sale of
20securities pursuant to the offer if (1) the agreement contains
21substantially the following provision: “The sale of the securities
22that are the subject of this agreement has not been qualified with
23the Commissioner of Corporations of the State of California and
24the issuance of the securities or the payment or receipt of any part
25of the consideration therefor prior to the qualification is unlawful,
26unless the sale of securities is exempt from the qualification by
27Section 25100, 25102, or 25105 of the California Corporations
28Code. The rights of all parties to this agreement are expressly
29 conditioned upon the qualification being obtained, unless the sale
30is so exempt”; and (2) no part of the purchase price is paid or
31received and none of the securities are issued until the sale of the
32securities is qualified under this law unless the sale of securities
33is exempt from the qualification by this section, Section 25100,
34or 25105.

35(b) Any offer (but not a sale) of a security for which a
36registration statement has been filed under the Securities Act of
371933 but has not yet become effective, or for which an offering
38statement under Regulation A has been filed but has not yet been
39qualified, if no stop order or refusal order is in effect and no public
40proceeding or examination looking towards an order is pending
P28   1under Section 8 of the act and no order under Section 25140 or
2subdivision (a) of Section 25143 is in effect under this law.

3(c) Any offer (but not a sale) and the execution and delivery of
4any agreement for the sale of securities pursuant to the offer as
5may be permitted by the commissioner upon application. Any
6negotiating permit under this subdivision shall be conditioned to
7the effect that none of the securities may be issued and none of
8the consideration therefor may be received or accepted until the
9sale of the securities is qualified under this law.

10(d) Any transaction or agreement between the issuer and an
11underwriter or among underwriters if the sale of the securities is
12qualified, or exempt from qualification, at the time of distribution
13thereof in this state, if any.

14(e) Any offer or sale of any evidence of indebtedness, whether
15secured or unsecured, and any guarantee thereof, in a transaction
16not involving any public offering.

17(f) Any offer or sale of any security in a transaction (other than
18an offer or sale to a pension or profit-sharing trust of the issuer)
19that meets each of the following criteria:

20(1) Sales of the security are not made to more than 35 persons,
21including persons not in this state.

22(2) All purchasers either have a preexisting personal or business
23relationship with the offeror or any of its partners, officers,
24directors or controlling persons, or managers (as appointed or
25elected by the members) if the offeror is a limited liability
26company, or by reason of their business or financial experience or
27the business or financial experience of their professional advisers
28who are unaffiliated with and who are not compensated by the
29issuer or any affiliate or selling agent of the issuer, directly or
30indirectly, could be reasonably assumed to have the capacity to
31protect their own interests in connection with the transaction.

32(3) Each purchaser represents that the purchaser is purchasing
33for the purchaser’s own account (or a trust account if the purchaser
34is a trustee) and not with a view to or for sale in connection with
35any distribution of the security.

36(4) The offer and sale of the security is not accomplished by
37the publication of any advertisement. The number of purchasers
38referred to above is exclusive of any described in subdivision (i),
39any officer, director, or affiliate of the issuer, or manager (as
40appointed or elected by the members) if the issuer is a limited
P29   1liability company, and any other purchaser who the commissioner
2designates by rule. For purposes of this section,begin delete a husband and
3wifeend delete
begin insert spousesend insert (together with any custodian or trustee acting for the
4account of their minor children) are counted as one person and a
5partnership, corporation, or other organization that was not
6specifically formed for the purpose of purchasing the security
7offered in reliance upon this exemption, is counted as one person.
8The commissioner shall by rule require the issuer to file a notice
9of transactions under this subdivision.

10The failure to file the notice or the failure to file the notice within
11the time specified by the rule of the commissioner shall not affect
12the availability of the exemption. Any issuer that fails to file the
13notice as provided by rule of the commissioner shall, within 15
14business days after discovery of the failure to file the notice or
15after demand by the commissioner, whichever occurs first, file the
16notice and pay to the commissioner a fee equal to the fee payable
17had the transaction been qualified under Section 25110. Neither
18the filing of the notice nor the failure by the commissioner to
19comment thereon precludes the commissioner from taking any
20action that the commissioner deems necessary or appropriate under
21this division with respect to the offer and sale of the securities.

22(g) Any offer or sale of conditional sale agreements, equipment
23trust certificates, or certificates of interest or participation therein
24or partial assignments thereof, covering the purchase of railroad
25rolling stock or equipment or the purchase of motor vehicles,
26aircraft, or parts thereof, in a transaction not involving any public
27offering.

28(h) Any offer or sale of voting common stock by a corporation
29incorporated in any state if, immediately after the proposed sale
30and issuance, there will be only one class of stock of the
31corporation outstanding that is owned beneficially by no more than
3235 persons, provided all of the following requirements have been
33met:

34(1) The offer and sale of the stock is not accompanied by the
35publication of any advertisement, and no selling expenses have
36been given, paid, or incurred in connection therewith.

37(2) The consideration to be received by the issuer for the stock
38to be issued consists of any of the following:

39(A) Only assets (which may include cash) of an existing business
40enterprise transferred to the issuer upon its initial organization, of
P30   1which all of the persons who are to receive the stock to be issued
2pursuant to this exemption were owners during, and the enterprise
3was operated for, a period of not less than one year immediately
4preceding the proposed issuance, and the ownership of the
5enterprise immediately prior to the proposed issuance was in the
6same proportions as the shares of stock are to be issued.

7(B) Only cash or cancellation of indebtedness for money
8borrowed, or both, upon the initial organization of the issuer,
9provided all of the stock is issued for the same price per share.

10(C) Only cash, provided the sale is approved in writing by each
11of the existing shareholders and the purchaser or purchasers are
12existing shareholders.

13(D) In a case where after the proposed issuance there will be
14only one owner of the stock of the issuer, only any legal
15consideration.

16(3) No promotional consideration has been given, paid, or
17incurred in connection with the issuance. Promotional consideration
18means any consideration paid directly or indirectly to a person
19who, acting alone or in conjunction with one or more other persons,
20takes the initiative in founding and organizing the business or
21enterprise of an issuer for services rendered in connection with the
22founding or organizing.

23(4) A notice in a form prescribed by rule of the commissioner,
24signed by an active member of the State Bar of California, is filed
25with or mailed for filing to the commissioner not later than 10
26business days after receipt of consideration for the securities by
27the issuer. That notice shall contain an opinion of the member of
28the State Bar of California that the exemption provided by this
29subdivision is available for the offer and sale of the securities. The
30failure to file the notice as required by this subdivision and the
31rules of the commissioner shall not affect the availability of this
32exemption. An issuer who fails to file the notice within the time
33specified by this subdivision shall, within 15 business days after
34discovery of the failure to file the notice or after demand by the
35commissioner, whichever occurs first, file the notice and pay to
36the commissioner a fee equal to the fee payable had the transaction
37been qualified under Section 25110. The notice, except when filed
38on behalf of a California corporation, shall be accompanied by an
39irrevocable consent, in the form that the commissioner by rule
40prescribes, appointing the commissioner or his or her successor in
P31   1office to be the issuer’s attorney to receive service of any lawful
2process in any noncriminal suit, action, or proceeding against it
3or its successor that arises under this law or any rule or order
4hereunder after the consent has been filed, with the same force and
5validity as if served personally on the issuer. An issuer on whose
6behalf a consent has been filed in connection with a previous
7qualification or exemption from qualification under this law (or
8 application for a permit under any prior law if the application or
9notice under this law states that the consent is still effective) need
10not file another. Service may be made by leaving a copy of the
11process in the office of the commissioner, but it is not effective
12unless (A) the plaintiff, who may be the commissioner in a suit,
13action, or proceeding instituted by him or her, forthwith sends
14notice of the service and a copy of the process by registered or
15certified mail to the defendant or respondent at its last address on
16file with the commissioner, and (B) the plaintiff’s affidavit of
17compliance with this section is filed in the case on or before the
18return day of the process, if any, or within the further time as the
19court allows.

20(5) Each purchaser represents that the purchaser is purchasing
21for the purchaser’s own account, or a trust account if the purchaser
22is a trustee, and not with a view to or for sale in connection with
23any distribution of the stock.

24For the purposes of this subdivision, all securities held bybegin delete a
25husband and wife,end delete
begin insert spouses,end insert whether or not jointly, shall be
26considered to be owned by one person, and all securities held by
27a corporation that has issued stock pursuant to this exemption shall
28be considered to be held by the shareholders to whom it has issued
29the stock.

30All stock issued by a corporation pursuant to this subdivision as
31it existed prior to the effective date of the amendments to this
32section made during the 1996 portion of the 1995-96 Regular
33Session that required the issuer to have stamped or printed
34prominently on the face of the stock certificate a legend in a form
35prescribed by rule of the commissioner restricting transfer of the
36stock in a manner provided for by that rule shall not be subject to
37the transfer restriction legend requirement and, by operation of
38law, the corporation is authorized to remove that transfer restriction
39legend from the certificates of those shares of stock issued by the
40corporation pursuant to this subdivision as it existed prior to the
P32   1effective date of the amendments to this section made during the
21996 portion of the 1995-96 Regular Session.

3(i) Any offer or sale (1) to a bank, savings and loan association,
4trust company, insurance company, investment company registered
5under the Investment Company Act of 1940, pension or
6profit-sharing trust (other than a pension or profit-sharing trust of
7the issuer, a self-employed individual retirement plan, or individual
8retirement account), or other institutional investor or governmental
9agency or instrumentality that the commissioner may designate
10by rule, whether the purchaser is acting for itself or as trustee, or
11(2) to any corporation with outstanding securities registered under
12Section 12 of the Securities Exchange Act of 1934 or any wholly
13owned subsidiary of the corporation that after the offer and sale
14will own directly or indirectly 100 percent of the outstanding
15capital stock of the issuer, provided the purchaser represents that
16it is purchasing for its own account (or for the trust account) for
17investment and not with a view to or for sale in connection with
18any distribution of the security.

19(j) Any offer or sale of any certificate of interest or participation
20in an oil or gas title or lease (including subsurface gas storage and
21payments out of production) if either of the following apply:

22(1) All of the purchasers meet one of the following requirements:

23(A) Are and have been during the preceding two years engaged
24primarily in the business of drilling for, producing, or refining oil
25or gas (or whose corporate predecessor, in the case of a corporation,
26 has been so engaged).

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

28(C) Have been found by the commissioner upon written
29application to be substantially engaged in the business of drilling
30for, producing, or refining oil or gas so as not to require the
31protection provided by this law (which finding shall be effective
32until rescinded).

33(2) The security is concurrently hypothecated to a bank in the
34ordinary course of business to secure a loan made by the bank,
35provided that each purchaser represents that it is purchasing for
36its own account for investment and not with a view to or for sale
37in connection with any distribution of the security.

38(k) Any offer or sale of any security under, or pursuant to, a
39plan of reorganization under Chapter 11 of the federal bankruptcy
P33   1law that has been confirmed or is subject to confirmation by the
2decree or order of a court of competent jurisdiction.

3(l) Any offer or sale of an option, warrant, put, call, or straddle,
4and any guarantee of any of these securities, by a person who is
5not the issuer of the security subject to the right, if the transaction,
6had it involved an offer or sale of the security subject to the right
7by the person, would not have violated Section 25110 or 25130.

8(m) Any offer or sale of a stock to a pension, profit-sharing,
9stock bonus, or employee stock ownership plan, provided that (1)
10the plan meets the requirements for qualification under Section
11401 of the Internal Revenue Code, and (2) the employees are not
12required or permitted individually to make any contributions to
13the plan. The exemption provided by this subdivision shall not be
14 affected by whether the stock is contributed to the plan, purchased
15from the issuer with contributions by the issuer or an affiliate of
16the issuer, or purchased from the issuer with funds borrowed from
17the issuer, an affiliate of the issuer, or any other lender.

18(n) Any offer or sale of any security in a transaction, other than
19an offer or sale of a security in a rollup transaction, that meets all
20of the following criteria:

21(1) The issuer is (A) a California corporation or foreign
22corporation that, at the time of the filing of the notice required
23under this subdivision, is subject to Section 2115, or (B) any other
24form of business entity, including without limitation a partnership
25or trust organized under the laws of this state. The exemption
26provided by this subdivision is not available to a “blind pool”
27issuer, as that term is defined by the commissioner, or to an
28investment company subject to the Investment Company Act of
291940.

30(2) Sales of securities are made only to qualified purchasers or
31other persons the issuer reasonably believes, after reasonable
32inquiry, to be qualified purchasers. A corporation, partnership, or
33other organization specifically formed for the purpose of acquiring
34the securities offered by the issuer in reliance upon this exemption
35may be a qualified purchaser if each of the equity owners of the
36corporation, partnership, or other organization is a qualified
37purchaser. Qualified purchasers include the following:

38(A) A person designated in Section 260.102.13 of Title 10 of
39the California Code of Regulations.

P34   1(B) A person designated in subdivision (i) or any rule of the
2commissioner adopted thereunder.

3(C) A pension or profit-sharing trust of the issuer, a
4self-employed individual retirement plan, or an individual
5retirement account, if the investment decisions made on behalf of
6the trust, plan, or account are made solely by persons who are
7qualified purchasers.

8(D) An organization described in Section 501(c)(3) of the
9Internal Revenue Code, corporation, Massachusetts or similar
10business trust, or partnership, each with total assets in excess of
11five million dollars ($5,000,000) according to its most recent
12audited financial statements.

13(E) With respect to the offer and sale of one class of voting
14common stock of an issuer or of preferred stock of an issuer
15entitling the holder thereof to at least the same voting rights as the
16issuer’s one class of voting common stock, provided that the issuer
17has only one-class voting common stock outstanding upon
18consummation of the offer and sale, a natural person who, either
19individually or jointly with the person’s spouse, (i) has a minimum
20net worth of two hundred fifty thousand dollars ($250,000) and
21had, during the immediately preceding tax year, gross income in
22excess of one hundred thousand dollars ($100,000) and reasonably
23expects gross income in excess of one hundred thousand dollars
24($100,000) during the current tax year or (ii) has a minimum net
25worth of five hundred thousand dollars ($500,000). “Net worth”
26shall be determined exclusive of home, home furnishings, and
27automobiles. Other assets included in the computation of net worth
28may be valued at fair market value.

29Each natural person specified above, by reason of his or her
30business or financial experience, or the business or financial
31experience of his or her professional adviser, who is unaffiliated
32with and who is not compensated, directly or indirectly, by the
33issuer or any affiliate or selling agent of the issuer, can be
34reasonably assumed to have the capacity to protect his or her
35interests in connection with the transaction. The amount of the
36investment of each natural person shall not exceed 10 percent of
37the net worth, as determined by this subparagraph, of that natural
38person.

39(F) Any other purchaser designated as qualified by rule of the
40commissioner.

P35   1(3) Each purchaser represents that the purchaser is purchasing
2for the purchaser’s own account (or trust account, if the purchaser
3is a trustee) and not with a view to or for sale in connection with
4a distribution of the security.

5(4) Each natural person purchaser, including a corporation,
6partnership, or other organization specifically formed by natural
7persons for the purpose of acquiring the securities offered by the
8issuer, receives, at least five business days before securities are
9sold to, or a commitment to purchase is accepted from, the
10purchaser, a written offering disclosure statement that shall meet
11the disclosure requirements of Regulation D (17 C.F.R. 230.501
12et seq.), and any other information as may be prescribed by rule
13of the commissioner, provided that the issuer shall not be obligated
14pursuant to this paragraph to provide this disclosure statement to
15a natural person qualified under Section 260.102.13 of Title 10 of
16the California Code of Regulations. The offer or sale of securities
17pursuant to a disclosure statement required by this paragraph that
18is in violation of Section 25401, or that fails to meet the disclosure
19requirements of Regulation D (17 C.F.R. 230.501 et seq.), shall
20not render unavailable to the issuer the claim of an exemption from
21Section 25110 afforded by this subdivision. This paragraph does
22not impose, directly or indirectly, any additional disclosure
23obligation with respect to any other exemption from qualification
24available under any other provision of this section.

25(5) (A) A general announcement of proposed offering may be
26published by written document only, provided that the general
27announcement of proposed offering sets forth the following
28required information:

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

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

31(iii) The anticipated suitability standards for prospective
32purchasers.

33(iv) A statement that (I) no money or other consideration is
34being solicited or will be accepted, (II) an indication of interest
35made by a prospective purchaser involves no obligation or
36commitment of any kind, and, if the issuer is required by paragraph
37(4) to deliver a disclosure statement to prospective purchasers,
38(III) no sales will be made or commitment to purchase accepted
39until five business days after delivery of a disclosure statement
P36   1and subscription information to the prospective purchaser in
2accordance with the requirements of this subdivision.

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

4(vi) The following legend: “For more complete information
5about (Name of Issuer) and (Full Title of Security), send for
6additional information from (Name and Address) by sending this
7coupon or calling (Telephone Number).”

8(B) The general announcement of proposed offering referred
9to in subparagraph (A) may also set forth the following
10information:

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

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

13(iii) The price of the security to be issued, or, if the price is not
14known, the method of its determination or the probable price range
15as specified by the issuer, and the aggregate offering price.

16(C) The general announcement of proposed offering shall
17contain only the information that is set forth in this paragraph.

18(D) Dissemination of the general announcement of proposed
19offering to persons who are not qualified purchasers, without more,
20shall not disqualify the issuer from claiming the exemption under
21this subdivision.

22(6) No telephone solicitation shall be permitted until the issuer
23has determined that the prospective purchaser to be solicited is a
24qualified purchaser.

25(7) The issuer files a notice of transaction under this subdivision
26both (A) concurrent with the publication of a general announcement
27of proposed offering or at the time of the initial offer of the
28securities, whichever occurs first, accompanied by a filing fee, and
29(B) within 10 business days following the close or abandonment
30of the offering, but in no case more than 210 days from the date
31of filing the first notice. The first notice of transaction under
32subparagraph (A) shall contain an undertaking, in a form acceptable
33to the commissioner, to deliver any disclosure statement required
34by paragraph (4) to be delivered to prospective purchasers, and
35any supplement thereto, to the commissioner within 10 days of
36the commissioner’s request for the information. The exemption
37from qualification afforded by this subdivision is unavailable if
38an issuer fails to file the first notice required under subparagraph
39(A) or to pay the filing fee. The commissioner has the authority
40to assess an administrative penalty of up to one thousand dollars
P37   1($1,000) against an issuer that fails to deliver the disclosure
2statement required to be delivered to the commissioner upon the
3commissioner’s request within the time period set forth above.
4Neither the filing of the disclosure statement nor the failure by the
5commissioner to comment thereon precludes the commissioner
6from taking any action deemed necessary or appropriate under this
7division with respect to the offer and sale of the securities.

8(o) An offer or sale of any security issued by a corporation or
9limited liability company pursuant to a purchase plan or agreement,
10or issued pursuant to an option plan or agreement, where the
11security at the time of issuance or grant is exempt from registration
12under the Securities Act of 1933, as amended, pursuant to Rule
13701 adopted pursuant to that act (17 C.F.R. 230.701), the provisions
14of which are hereby incorporated by reference into this section,
15provided that (1) the terms of any purchase plan or agreement shall
16comply with Sections 260.140.42, 260.140.45, and 260.140.46 of
17Title 10 of the California Code of Regulations, (2) the terms of
18any option plan or agreement shall comply with Sections
19260.140.41, 260.140.45, and 260.140.46 of Title 10 of the
20California Code of Regulations, and (3) the issuer files a notice of
21transaction in accordance with rules adopted by the commissioner
22no later than 30 days after the initial issuance of any security under
23that plan, accompanied by a filing fee as prescribed by subdivision
24(y) of Section 25608. The failure to file the notice of transaction
25within the time specified in this subdivision shall not affect the
26availability of this exemption. An issuer that fails to file the notice
27shall, within 15 business days after discovery of the failure to file
28the notice or after demand by the commissioner, whichever occurs
29first, file the notice and pay the commissioner a fee equal to the
30maximum aggregate fee payable had the transaction been qualified
31under Section 25110.

32Offers and sales exempt pursuant to this subdivision shall be
33deemed to be part of a single, discrete offering and are not subject
34to integration with any other offering or sale, whether qualified
35under Chapter 2 (commencing with Section 25110), or otherwise
36exempt, or not subject to qualification.

37(p) An offer or sale of nonredeemable securities to accredited
38investors (Section 28031) by a person licensed under the Capital
39Access Company Law (Division 3 (commencing with Section
4028000) of Title 4), provided that all purchasers either (1) have a
P38   1preexisting personal or business relationship with the offeror or
2any of its partners, officers, directors, controlling persons, or
3managers (as appointed or elected by the members), or (2) by
4 reason of their business or financial experience or the business or
5financial experience of their professional advisers who are
6unaffiliated with and who are not compensated by the issuer or
7any affiliate or selling agent of the issuer, directly or indirectly,
8could be reasonably assumed to have the capacity to protect their
9own interests in connection with the transaction. All nonredeemable
10securities shall be evidenced by certificates that shall have stamped
11or printed prominently on their face a legend in a form to be
12prescribed by rule or order of the commissioner restricting transfer
13of the securities in the manner as the rule or order provides. The
14exemption under this subdivision shall not be available for any
15offering that is exempt or asserted to be exempt pursuant to Section
163(a)(11) of the Securities Act of 1933 (15 U.S.C. Sec. 77c(a)(11))
17or Rule 147 (17 C.F.R. 230.147) thereunder or otherwise is
18conducted by means of any form of general solicitation or general
19advertising.

20(q) Any offer or sale of any viatical or life settlement contract
21or fractionalized or pooled interest therein in a transaction that
22meets all of the following criteria:

23(1) Sales of securities described in this subdivision are made
24only to qualified purchasers or other persons the issuer reasonably
25believes, after reasonable inquiry, to be qualified purchasers. A
26corporation, partnership, or other organization specifically formed
27for the purpose of acquiring the securities offered by the issuer in
28reliance upon this exemption may be a qualified purchaser only if
29each of the equity owners of the corporation, partnership, or other
30organization is a qualified purchaser. Qualified purchasers include
31the following:

32(A) A person designated in Section 260.102.13 of Title 10 of
33the California Code of Regulations.

34(B) A person designated in subdivision (i) or any rule of the
35commissioner adopted thereunder.

36(C) A pension or profit-sharing trust of the issuer, a
37self-employed individual retirement plan, or an individual
38retirement account, if the investment decisions made on behalf of
39the trust, plan, or account are made solely by persons who are
40qualified purchasers.

P39   1(D) An organization described in Section 501(c)(3) of the
2Internal Revenue Code, corporation, Massachusetts or similar
3business trust, or partnership, each with total assets in excess of
4five million dollars ($5,000,000) according to its most recent
5audited financial statements.

6(E) A natural person who, either individually or jointly with the
7person’s spouse, (i) has a minimum net worth of one hundred fifty
8thousand dollars ($150,000) and had, during the immediately
9preceding tax year, gross income in excess of one hundred thousand
10dollars ($100,000) and reasonably expects gross income in excess
11of one hundred thousand dollars ($100,000) during the current tax
12year or (ii) has a minimum net worth of two hundred fifty thousand
13dollars ($250,000). “Net worth” shall be determined exclusive of
14home, home furnishings, and automobiles. Other assets included
15in the computation of net worth may be valued at fair market value.

16Each natural person specified above, by reason of his or her
17business or financial experience, or the business or financial
18experience of his or her professional adviser, who is unaffiliated
19with and who is not compensated, directly or indirectly, by the
20issuer or any affiliate or selling agent of the issuer, can be
21reasonably assumed to have the capacity to protect his or her
22interests in connection with the transaction.

23The amount of the investment of each natural person shall not
24exceed 10 percent of the net worth, as determined by this
25subdivision, of that natural person.

26(F) Any other purchaser designated as qualified by rule of the
27commissioner.

28(2) Each purchaser represents that the purchaser is purchasing
29for the purchaser’s own account (or trust account, if the purchaser
30is a trustee) and not with a view to or for sale in connection with
31a distribution of the security.

32(3) Each natural person purchaser, including a corporation,
33partnership, or other organization specifically formed by natural
34persons for the purpose of acquiring the securities offered by the
35issuer, receives, at least five business days before securities
36described in this subdivision are sold to, or a commitment to
37 purchase is accepted from, the purchaser, the following information
38in writing:

39(A) The name, principal business and mailing address, and
40telephone number of the issuer.

P40   1(B) The suitability standards for prospective purchasers as set
2forth in paragraph (1) of this subdivision.

3(C) A description of the issuer’s type of business organization
4and the state in which the issuer is organized or incorporated.

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

6(E) If the issuer retains ownership or becomes the beneficiary
7of the insurance policy, an audit report of an independent certified
8public accountant together with a balance sheet and related
9statements of income, retained earnings, and cashflows that reflect
10the issuer’s financial position, the results of the issuer’s operations,
11and the issuer’s cashflows as of a date within 15 months before
12the date of the initial issuance of the securities described in this
13subdivision. The financial statements listed in this subparagraph
14shall be prepared in conformity with generally accepted accounting
15principles. If the date of the audit report is more than 120 days
16before the date of the initial issuance of the securities described
17in this subdivision, the issuer shall provide unaudited interim
18financial statements.

19(F) The names of all directors, officers, partners, members, or
20trustees of the issuer.

21(G) A description of any order, judgment, or decree that is final
22as to the issuing entity of any state, federal, or foreign country
23governmental agency or administrator, or of any state, federal, or
24foreign country court of competent jurisdiction (i) revoking,
25suspending, denying, or censuring for cause any license, permit,
26or other authority of the issuer or of any director, officer, partner,
27member, trustee, or person owning or controlling, directly or
28indirectly, 10 percent or more of the outstanding interest or equity
29securities of the issuer, to engage in the securities, commodities,
30franchise, insurance, real estate, or lending business or in the offer
31or sale of securities, commodities, franchises, insurance, real estate,
32or loans, (ii) permanently restraining, enjoining, barring,
33suspending, or censuring any such person from engaging in or
34continuing any conduct, practice, or employment in connection
35with the offer or sale of securities, commodities, franchises,
36insurance, real estate, or loans, (iii) convicting any such person
37of, or pleading nolo contendere by any such person to, any felony
38or misdemeanor involving a security, commodity, franchise,
39insurance, real estate, or loan, or any aspect of the securities,
40 commodities, franchise, insurance, real estate, or lending business,
P41   1or involving dishonesty, fraud, deceit, embezzlement, fraudulent
2conversion, or misappropriation of property, or (iv) holding any
3such person liable in a civil action involving breach of a fiduciary
4duty, fraud, deceit, embezzlement, fraudulent conversion, or
5misappropriation of property. This subparagraph does not apply
6to any order, judgment, or decree that has been vacated, overturned,
7or is more than 10 years old.

8(H) Notice of the purchaser’s right to rescind or cancel the
9investment and receive a refund pursuant to Section 25508.5.

10(I) The name, address, and telephone number of the issuing
11insurance company, and the name, address, and telephone number
12of the state or foreign country regulator of the insurance company.

13(J) The total face value of the insurance policy and the
14percentage of the insurance policy the purchaser will own.

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

16(L) If a group insurance policy, the name, address, and telephone
17number of the group, and, if applicable, the material terms and
18conditions of converting the policy to an individual policy,
19including the amount of increased premiums.

20(M) If a term insurance policy, the term and the name, address,
21and telephone number of the person who will be responsible for
22renewing the policy if necessary.

23(N) That the insurance policy is beyond the state statute for
24contestability and the reason therefor.

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

27(P) The amount of the purchaser’s moneys that will be set aside
28to pay premiums.

29(Q) The name, address, and telephone number of the person
30who will be the insurance policy owner and the person who will
31be responsible for paying premiums.

32(R) The date on which the purchaser will be required to pay
33premiums and the amount of the premium, if known.

34(S) A statement to the effect that any projected rate of return to
35the purchaser from the purchase of a viatical or life settlement
36contract or a fractionalized or pooled interest therein is based on
37an estimated life expectancy for the person insured under the life
38insurance policy; that the return on the purchase may vary
39substantially from the expected rate of return based upon the actual
40life expectancy of the insured that may be less than, equal to, or
P42   1may greatly exceed the estimated life expectancy; and that the rate
2of return would be higher if the actual life expectancy were less
3than, and lower if the actual life expectancy were greater than the
4estimated life expectancy of the insured at the time the viatical or
5life settlement contract was closed.

6(T) A statement that the purchaser should consult with his or
7her tax adviser regarding the tax consequences of the purchase of
8the viatical or life settlement contract or fractionalized or pooled
9interest therein and, if the purchaser is using retirement funds or
10accounts for that purchase, whether or not any adverse tax
11consequences might result from the use of those funds for the
12purchase of that investment.

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

15

SEC. 21.  

Section 25206 of the Corporations Code is amended
16to read:

17

25206.  

A broker licensed by the Real Estate Commissioner is
18exempt from the provisions of Section 25210 when engaged in
19transactions in any interest in any general or limited partnership,
20joint venture, unincorporated association, or similar organization
21(but not a corporation) owned beneficially by no more than 100
22persons and formed for the sole purpose of, and engaged solely
23in, investment in or gain from an interest in real property, including,
24but not limited to, a sale, exchange, trade, or development. An
25interest held bybegin delete a husband and wifeend deletebegin insert spousesend insert shall be considered
26held by one person for the purposes of this section.

27

SEC. 22.  

Section 21100 of the Education Code is amended to
28read:

29

21100.  

Any person desiring in hisbegin insert or herend insert lifetime to promote
30the public welfare by founding, endowing, and maintaining within
31this state a university, college, school, seminary of learning,
32mechanical institute, museum, botanic garden, public park, or
33gallery of art, or any or all thereof, may, for such purposes, by
34grant in writing convey to a trustee, or any number of trustees,
35named in the grant, and to their successors, any property, real or
36personal, belonging to himbegin insert or herend insert and situated within this state. If
37hebegin insert or sheend insert is married and the property is community property, then
38bothbegin delete husband and wifeend deletebegin insert spousesend insert shall join in the grant.

39

SEC. 23.  

Section 24803 of the Education Code is amended to
40read:

P43   1

24803.  

(a) If any benefit is payable by a district retirement
2system to the estate of a deceased person, whether because the
3estate is the beneficiary of the person or because no beneficiary
4was designated or because an allowance payable to the person had
5accrued and remained unpaid at the date of the death, and the estate
6would not be administered if no amount were due from the system,
7then the benefit shall be paid directly without procuring letters of
8administration to the surviving next of kin of the deceased, or the
9guardians of the survivors’ estates, share and share alike. The
10payment shall be made in the same order in which the following
11groups are listed:

12(1) begin delete Husband or wife.end deletebegin insert Spouse.end insert

13(2) Children and issue of deceased children by right of
14representation.

15(3) Father and mother.

16(4) Brothers and sisters.

17(5) Nieces and nephews.

18(b) Payment may also be made to persons in the groups listed
19in subdivision (a) to the extent those persons are the only
20beneficiaries under the last will and testament of a deceased former
21member of a district retirement system, without the probate of the
22will.

23

SEC. 24.  

Section 68062 of the Education Code is amended to
24read:

25

68062.  

In determining the place of residence the following
26rules are to be observed:

27(a) There can only be one residence.

28(b) A residence is the place where one remains when not called
29elsewhere for labor or other special or temporary purpose, and to
30which he or she returns in seasons of repose.

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

32(d) The residence can be changed only by the union of act and
33intent.

34(e) A man or woman may establish his or her residence. A
35begin delete woman’send deletebegin insert person’send insert residence shall not be derivative from that of
36begin insert his orend insert herbegin delete husband.end deletebegin insert spouse.end insert

37(f) The residence of the parent with whom an unmarried minor
38child maintains his or her place of abode is the residence of the
39unmarried minor child. When the minor lives with neither parent
40his or her residence is that of the parent with whom he or she
P44   1maintained his or her last place of abode, provided the minor may
2establish his or her residence when both parents are deceased and
3a legal guardian has not been appointed.

4(g) The residence of an unmarried minor who has a parent living
5cannot be changed by his or her own act, by the appointment of a
6legal guardian, or by relinquishment of a parent’s right of control.

7(h) An alien, including an unmarried minor alien, may establish
8his or her residence, unless precluded by the Immigration and
9Nationality Act (8 U.S.C. 1101, et seq.) from establishing domicile
10in the United States.

11(i) The residence of an unmarried minor alien shall be derived
12from his or her parents pursuant to the provisions of subdivisions
13(f) and (g).

14

SEC. 25.  

Section 917 of the Evidence Code is amended to read:

15

917.  

(a) If a privilege is claimed on the ground that the matter
16sought to be disclosed is a communication made in confidence in
17the course of the lawyer-client, lawyer referral service-client,
18physician-patient, psychotherapist-patient, clergy-penitent,
19begin delete husband-wife,end deletebegin insert marital,end insert sexual assault counselor-victim, domestic
20violence counselor-victim, or human trafficking caseworker-victim
21relationship, the communication is presumed to have been made
22in confidence and the opponent of the claim of privilege has the
23burden of proof to establish that the communication was not
24confidential.

25(b) A communication between persons in a relationship listed
26in subdivision (a) does not lose its privileged character for the sole
27reason that it is communicated by electronic means or because
28persons involved in the delivery, facilitation, or storage of
29electronic communication may have access to the content of the
30communication.

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

33

SEC. 26.  

Section 980 of the Evidence Code is amended to read:

34

980.  

Subject to Section 912 and except as otherwise provided
35in this article, a spouse (or hisbegin insert or herend insert guardian or conservator when
36hebegin insert or sheend insert has a guardian or conservator), whether or not a party,
37has a privilege during the marital relationship and afterwards to
38refuse to disclose, and to prevent another from disclosing, a
39communication if hebegin insert or sheend insert claims the privilege and the
40begin delete comunicationend deletebegin insert communicationend insert was made in confidence between
P45   1himbegin insert or herend insert and the other spouse while they werebegin delete husband and wife.end delete
2begin insert spouses.end insert

3

SEC. 27.  

Section 14860 of the Financial Code is amended to
4read:

5

14860.  

Except as provided in this section and Part 2
6(commencing with Section 5100) of Division 5 of the Probate
7Code, no credit union shall exercise trust powers except upon
8qualifying as a trust company pursuant to Division 1 (commencing
9with Section 99).

10(a) Notwithstanding any other provisions of law relating to trusts
11and trust authority, subject to the regulations of the commissioner,
12a credit union may act as a trustee or custodian, and may receive
13reasonable compensation for so acting, under any written trust
14instrument or custodial agreement created or organized in the
15United States which is a part of a pension, education, or medical
16plan for its members or groups or organizations of its members,
17which qualifies or has qualified for specific tax treatment under
18Section 220, 223, 401, 408, 408A, 457, or 530 of the Internal
19Revenue Code, Title 26 of the United States Code, or any deferred
20compensation plan for the benefit of the credit union’s employees,
21provided the funds received pursuant to these plans are invested
22as provided in Section 16040 of the Probate Code. All funds held
23by a credit union as trustee or in a custodial capacity shall be
24maintained in accordance with applicable laws and rules and
25regulations as may be promulgated by the Secretary of Labor, the
26Secretary of the Treasury, or any other authority exercising
27jurisdiction over the trust or custodial accounts. The credit union
28shall maintain individual records for each participant or beneficiary
29that show in detail all transactions relating to the funds of each
30participant or beneficiary.

31The trust instrument or agreement shall provide for the
32appointment of a successor trustee or custodian by a person,
33committee, corporation, or organization other than the credit union
34or any person acting in his or her capacity as a director, employee,
35or agent of the credit union, upon notice from the credit union or
36the commissioner that the credit union is unwilling or unable to
37continue to act as trustee or custodian.

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

P46   1(1) When shares are issued in a revocable trust, the settlor shall
2be a member of the credit union issuing the shares in his or her
3own right. If the trust has joint settlers, who arebegin delete husband and wife,end delete
4begin insert spouses,end insert then only one settlor need be a member of the credit union.

5(2) When shares are issued in an irrevocable trust, the settlor or
6the beneficiary shall be a member of this credit union in his or her
7own right. For purposes of this section, shares issued pursuant to
8a pension plan authorized by this section shall be treated as an
9irrevocable trust unless otherwise indicated in rules and regulations
10issued by the commissioner.

11(3) This subdivision does not apply to trust accounts established
12prior to the effective date of this subdivision.

13

SEC. 28.  

Section 18220 of the Financial Code is amended to
14read:

15

18220.  

An industrial loan company shall not induce any
16begin delete husband and wifeend deletebegin insert spousesend insert jointly or severally, to become obligated,
17directly or contingently or both, under more than one contract of
18loan at the same time, with the result of obtaining a higher rate of
19charge than would otherwise be permitted by this division.

20

SEC. 29.  

Section 18523 of the Financial Code is amended to
21read:

22

18523.  

The following described thrift obligations will be
23guaranteed by Guaranty Corporation in the amounts hereinafter
24set forth below:

25(a) Single ownership investment certificates. Funds owned by
26an individual and invested in the manner set forth below shall be
27added together and guaranteed up to fifty thousand dollars
28($50,000) in the aggregate.

29(1) Individual investment certificates (or investment certificates
30of thebegin delete husband-wifeend deletebegin insert maritalend insert community of which the individual
31is a member) and invested in one or more investment certificates
32in his or her own name shall be guaranteed up to fifty thousand
33dollars ($50,000) in the aggregate.

34(2) Funds owned by a principal and invested in one or more
35investment certificates in the name or names of agents or nominees
36shall be added to any individual investment certificates of the
37principal and guaranteed up to fifty thousand dollars ($50,000) in
38the aggregate.

39(3)  Investment certificates held by guardians,begin delete custodiansend delete
40begin insert custodians,end insert or conservators for the benefit of their wards or for the
P47   1benefit of a minor under a Uniform Gifts to Minors Act and
2invested in one or more investment certificates in the name of the
3guardian,begin delete custodianend deletebegin insert custodian,end insert or conservator shall be added to
4any individual investment certificates of the ward or minor and
5guaranteed up to fifty thousand dollars ($50,000) in the aggregate.

6(b) Testamentary investment certificates.

7(1) Funds owned by an individual and invested in a revocable
8trust investment certificate, tentative trust investment certificate,
9payable-on-death investment certificate, or similar investment
10certificate evidencing an intention that on his or her death the funds
11shall belong to his or her spouse, child or grandchild, shall be
12guaranteed up to fifty thousand dollars ($50,000) in the aggregate,
13as to each such named beneficiary, separately from any other
14investment certificates of the owner.

15(2) If the named beneficiary of such an investment certificate
16is other than the owner’s spouse, child or grandchild, the funds in
17the investment certificate shall be added to any individual
18investment certificates of such owner and guaranteed up to fifty
19thousand dollars ($50,000) in the aggregate, separately from the
20individual investment certificates of the beneficiaries of the estate
21or of the executor or administrator.

22(c)  Investment certificates held by executors or administrators.
23Funds of a decedent held in the name of the decedent or in the
24name of the executor or administrator of his or her estate and
25invested in one or more investment certificates shall be guaranteed
26up to fifty thousand dollars ($50,000) in the aggregate, separately
27from the individual investment certificates of the beneficiaries of
28the estate or of the executor or administrator.

29(d) Corporation or partnership investment certificates.
30Investment certificates of a corporation or partnership engaged in
31any independent activity shall be guaranteed up to fifty thousand
32dollars ($50,000) in the aggregate. An investment certificate of a
33corporation or partnership not engaged in an independent activity
34shall be deemed to be owned by the person or persons owning
35such corporation or comprising such partnership and, for guarantee
36purposes, the interest of each person in the investment certificate
37shall be added to any other investment certificates individually
38owned by such person and guaranteed up to fifty thousand dollars
39($50,000) in the aggregate. The term “independent activity” means
P48   1any activity other than one directed solely at increasing guarantee
2coverage under this chapter.

3(e) Unincorporated associations. Investment certificates of an
4unincorporated association engaged in any independent activity
5shall be guaranteed up to fifty thousand dollars ($50,000) in the
6aggregate. An investment certificate of an unincorporated
7association not engaged in an independent activity shall be deemed
8to be owned by the persons comprising such association and, for
9guarantee purposes, the interest of each owner in the investment
10certificate shall be added to any other investment certificates
11individually owned by such person and guaranteed up to fifty
12thousand dollars ($50,000) in the aggregate.

13(f) Joint investment certificates.

14(1)  Investment certificates owned jointly, whether as joint
15tenants with right of survivorship, as tenants by the entireties, as
16tenants in common, or bybegin delete husband and wifeend deletebegin insert spousesend insert as community
17property, shall be guaranteed separately from investment
18certificates individually owned by the co-owners.

19(2) A joint investment certificate shall be deemed to exist, for
20purposes of guarantee of investment certificates, only if each
21co-owner has personally executed an investment certificate
22signature card and possesses redemption rights.

23(3) An investment certificate owned jointly which does not
24qualify as a joint investment certificate for purposes of guarantee
25of investment certificates shall be treated as owned by the named
26persons as individuals and the actual ownership interest of each
27such person in such investment certificate shall be added to any
28other investment certificates individually owned by such person
29and guaranteed up to fifty thousand dollars ($50,000) in the
30aggregate.

31(4) All joint investment certificates owned by the same
32combination of individuals shall first be added together and
33guaranteed up to fifty thousand dollars ($50,000) in the aggregate.

34(5) The interest of each co-owner in all joint investment
35certificates owned by different combinations of individuals shall
36then be added together and guaranteed up to fifty thousand dollars
37($50,000) in the aggregate.

38(g) Trust investment certificates. All trust interests for the same
39beneficiary invested in investment certificates established pursuant
40to valid trust arrangements created by the same settlor (grantor)
P49   1shall be added together and guaranteed up to fifty thousand dollars
2($50,000) in the aggregate, separately from other investment
3certificates of the trustee of such trust funds or the settlor or
4beneficiary of such trust arrangements.

5(h) Thrift obligations withdrawn by checks that have not cleared
6a member’s bank account at the time the commissioner has taken
7possession of the property and business of a member. The owner
8of the funds represented by such a check shall be recognized for
9all purposes of a claim for guaranteed thrift obligations to the same
10extent as if his or her name and interest were disclosed on the
11records of the member.

12

SEC. 30.  

Section 22327 of the Financial Code is amended to
13read:

14

22327.  

No licensee shall knowingly induce any borrower to
15split up or divide any loan with any other licensee. No licensee
16shall induce or permit any borrower to be or to become obligated
17directly or indirectly, or both, under more than one contract of loan
18at the same time with the same licensee for the purpose or with
19the result of obtaining a higher rate of charge than would otherwise
20be permitted by this article, except as otherwise required by the
21federal Equal Credit Opportunity Act (15 U.S.C. Sec. 1691 et seq.;
22begin delete P.L.end deletebegin insert Public Lawend insert 93-495) and Regulation B promulgated by the
23Board of Governors of the Federal Reserve System (12 C.F.R. 202
24et seq.). For the purpose of this section, “borrower” includes any
25begin delete husband and wife,end deletebegin insert spouses,end insert whether jointly or severally obligated.

26

SEC. 31.  

Section 8552.3 of the Fish and Game Code is
27amended to read:

28

8552.3.  

The commission may, in consultation with
29representatives of the commercial herring roe fishery, and after
30holding at least one public hearing, adopt regulations intended to
31facilitate the transfer of herring permits, including, but not limited
32to, regulations that would do the following:

33(a) Allow an individual to own a single permit for each of the
34different herring gillnet platoons in San Francisco Bay.

35(b) Eliminate the point system for qualifying for a herring
36permit.

37(c) Allow a herring permit to be passed from a parent to child,
38or betweenbegin delete husband and wife.end deletebegin insert spouses.end insert

39

SEC. 32.  

Section 9359.9 of the Government Code is amended
40to read:

P50   1

9359.9.  

If a beneficiary is not designated, or if the estate is the
2beneficiary and the estate would not be probated if no amount were
3due from this system, all of the amount due by reason of the death
4of a member or retired member, including retirement allowances
5accrued but not received prior to death, shall be paid directly
6without probate to the surviving next of kin of the deceased, or
7the guardians of such survivors’ estates, share and share alike.

8Such payment shall be made in the same order in which the
9following groups are listed:

101. begin delete Husband or wife,end deletebegin insert Spouse,end insert

112. Children,

123. Father and mother,

134. Grandchildren,

145. Brothers and sisters,

156. Nieces and nephews.

16

SEC. 33.  

Section 9374 of the Government Code is amended
17to read:

18

9374.  

Upon the death of a member before retirement (a) the
19survivingbegin delete wife or surviving husbandend deletebegin insert spouseend insert of the member, who
20has the care of unmarried children, including stepchildren, of the
21member who are under 18 years of age, or are incapacitated
22because of disability which began before and has continued without
23interruption after attainment of that age, or if there is no such
24spouse, then (b) the guardian of surviving unmarried children,
25including stepchildren, of the member who are under 18 years of
26age or so incapacitated, if any, or (c) the survivingbegin delete wife or surviving
27husbandend delete
begin insert spouseend insert of the member, who does not qualify under (a), if
28any, or if no such children under (b) or such spouse under (c), then
29(d) each surviving parent of the member, shall be paid the following
30applicable survivor allowance, under the conditions stated and
31from contributions of the state:

32(1) A widow or a widower who was married to the member
33prior to the occurrence of the injury or onset of the illness that
34resulted in death, and has the care of unmarried children, including
35stepchildren, of the deceased member under 18 years of age or so
36incapacitated, shall be paid three hundred sixty dollars ($360) if
37there is one such child, or four hundred thirty dollars ($430) per
38month if there are two or more such children. If there also are such
39children who are not in the care of the surviving spouse, the portion
40of the allowance payable under this paragraph, assuming that these
P51   1children were in the care of the surviving spouse, which is in excess
2of one hundred eighty dollars ($180) per month, shall be divided
3equally among all of those children and payments made to the
4spouse and other children, as the case may be.

5(2) If there is no such surviving spouse, or if such surviving
6spouse dies or remarries, and if there are unmarried children,
7including stepchildren, of the deceased member under 18 years of
8age, or if there are such children not in the care of such spouse,
9such children shall be paid an allowance as follows:

10(a) If there is only one such child, such child shall be paid one
11hundred eighty dollars ($180) per month;

12(b) If there are two such children, such children shall be paid
13three hundred sixty dollars ($360) per month divided equally
14between them; and

15(c) If there are three or more such children, such children shall
16be paid four hundred thirty dollars ($430) per month divided
17equally among them.

18(3) Abegin delete widow or widowerend deletebegin insert surviving spouseend insert who has attained or
19attains the age of 62 years, and,begin delete with respect to both widow and
20widower,end delete
begin insert regardless of the gender of the surviving spouse,end insert who
21was married to such member prior to the occurrence of the injury
22or onset of the illness that resulted in death, and has not remarried
23subsequent to the member’s death, shall be paid one hundred eighty
24dollars ($180) per month. No allowance shall be paid under this
25subdivision, while the surviving spouse is receiving an allowance
26under subdivision (1) of this section, or while an allowance is being
27paid under subdivision (2)(c) of this section. The allowance paid
28under this subdivision shall be seventy dollars ($70) per month
29while an allowance is being paid under subdivision (2)(b) of this
30section.

31(4) If there is no surviving spouse, or surviving children who
32qualify for a survivor allowance, or if such surviving spouse dies
33or remarries, or if such children reach age 18 or die or marry prior
34thereto, each of the member’s dependent mother and father who
35has attained or attains the age of 62 years, and who received at
36least one-half of his or her support from the member at the time
37of the member’s death, shall be paid one hundred eighty dollars
38($180) per month.

P52   1“Stepchildren,” for purposes of this section, shall include only
2stepchildren of the member living with him or her in a regular
3parent-child relationship at the time of his or her death.

4

SEC. 34.  

Section 21571 of the Government Code is amended
5to read:

6

21571.  

(a) If the death benefit provided by Section 21532 is
7payable on account of a member’s death that occurs under
8circumstances other than those described in subparagraph (F) of
9paragraph 1 of subdivision (a) of Section 21530, or if an allowance
10under Section 21546 is payable, the payment pursuant to
11subdivision (b) shall be made, in the following order of priority:

12(1) The survivingbegin delete wife or surviving husbandend deletebegin insert spouseend insert of the
13member, who has the care of unmarried children, including
14stepchildren, of the member who are under 22 years of age, or are
15incapacitated because of disability that began before and has
16continued without interruption after attainment of that age.

17(2) The guardian or conservator of surviving unmarried children,
18including stepchildren, of the member who are under 22 years of
19age or are so incapacitated.

20(3) The survivingbegin delete wife or surviving husbandend deletebegin insert spouseend insert of the
21member, who does not qualify under paragraph (1).

22(4) Each surviving parent of the member.

23(b) Regardless of the benefit provided by Section 21532 and of
24the beneficiary designated by the member under that section, or
25regardless of the allowance provided under Section 21546, the
26following applicable 1959 survivor allowance, under the conditions
27stated and from contributions of the state, shall be paid:

28(1) A surviving spouse who was either continuously married to
29the member for at least one year prior to death, or was married to
30the member prior to the occurrence of the injury or onset of the
31illness that resulted in death, and has the care of unmarried
32children, including stepchildren, of the deceased member who are
33under 22 years of age or are so incapacitated, shall be paid three
34hundred sixty dollars ($360) if there is one child or four hundred
35thirty dollars ($430) per month if there are two or more children.
36If there also are children who are not in the care of the surviving
37spouse, the portion of the allowance payable under this paragraph,
38assuming that these children were in the care of the surviving
39spouse, which is in excess of one hundred eighty dollars ($180)
40per month, shall be divided equally among all those children and
P53   1payments made to the spouse and other children, as the case may
2be.

3(2) If there is no surviving spouse, or if the surviving spouse
4dies, and if there are unmarried children, including stepchildren,
5of the deceased member who are under 22 years of age or are so
6incapacitated, or if there are children not in the care of the spouse,
7the children shall be paid an allowance as follows:

8(A) If there is only one child, the child shall be paid one hundred
9eighty dollars ($180) per month.

10(B) If there are two children, the children shall be paid three
11hundred sixty dollars ($360) per month divided equally between
12them.

13(C) If there are three or more children, the children shall be paid
14four hundred thirty dollars ($430) per month divided equally among
15them.

16(3) A surviving spouse who has attained or attains the age of
1762 years and, with respect to that surviving spouse, who was either
18continuously married to the member for at least one year prior to
19death, or who was married to the member prior to the occurrence
20of the injury or onset of the illness which resulted in death, shall
21 be paid one hundred eighty dollars ($180) per month. No allowance
22shall be paid under this paragraph, while the surviving spouse is
23receiving an allowance under paragraph (1), or while an allowance
24is being paid under subparagraph (C) of paragraph (2). The
25allowance paid under this paragraph shall be seventy dollars ($70)
26per month while an allowance is being paid under subparagraph
27(B) of paragraph (2).

28(4) If there is no surviving spouse or surviving child who
29qualifies for a 1959 survivor allowance, or if the surviving spouse
30dies and there is no surviving child, or if the surviving spouse dies
31and the children die or marry or, if not incapacitated, reach age
3222, each of the member’s dependent parents who has attained or
33attains the age of 62, and who received at least one-half of his or
34her support from the member at the time of the member’s death,
35shall be paid one hundred eighty dollars ($180) per month.

36(c) “Stepchildren,” for purposes of this section, shall include
37only stepchildren of the member living with him or her in a regular
38parent-child relationship at the time of his or her death.

P54   1(d) The amendments to this section by Chapter 1617 of the
2Statutes of 1971 shall apply only to 1959 survivor allowances
3payable April 1, 1972, and thereafter.

4(e) This section does not apply to any member in the employ
5of an employer not subject to this section on January 1, 1994.

6(f) On and after the date determined by the board, all assets and
7liabilities of all contracting agencies subject to this section, and
8their employees, on account of benefits provided under this article
9shall be pooled into a single account, and a single employer rate
10shall be established to provide benefits under this section on
11account of members employed by a contracting agency that is
12subject to this section.

13(g) The rate of contribution of an employer subject to this section
14shall be figured using the term insurance valuation method. If a
15contracting agency that is subject to this section is projected to
16have a surplus in its 1959 survivor benefit account as of the date
17the assets and liabilities are first pooled, the surplus shall be applied
18to reduce its rate of contribution. If a contracting agency that is
19subject to this section is projected to have a deficit in its 1959
20survivor benefit account as of the date the assets and liabilities are
21first pooled, its rate of contribution shall be increased until the
22projected deficit is paid.

23

SEC. 35.  

Section 21572 of the Government Code is amended
24to read:

25

21572.  

(a) In lieu of benefits provided in Section 21571, if the
26death benefit provided by Section 21532 is payable on account of
27a state member’s death that occurs under circumstances other than
28those described in subparagraph (F) of paragraph (1) of subdivision
29(a) of Section 21530, or if an allowance under Section 21546 is
30payable, the payment pursuant to subdivision (b) shall be made in
31the following order of priority:

32(1) The survivingbegin delete wife or surviving husbandend deletebegin insert spouseend insert of the
33member who has the care of unmarried children, including
34stepchildren, of the member who are under 22 years of age or are
35incapacitated because of a disability that began before and has
36continued without interruption after attainment of that age.

37(2) The guardian of surviving unmarried children, including
38stepchildren, of the member who are under 22 years of age or are
39so incapacitated.

P55   1(3) The survivingbegin delete wife or surviving husbandend deletebegin insert spouseend insert of the
2member who does not qualify under paragraph (1).

3(4) Each surviving parent of the member.

4(b) Regardless of the benefit provided by Section 21532 and of
5the beneficiary designated by the member under that section, or
6regardless of the allowance provided under Section 21546, the
7following applicable 1959 survivor allowance, under the conditions
8stated and from contributions of the state, shall be paid:

9(1) A surviving spouse who was either continuously married to
10the member for at least one year prior to death, or was married to
11the member prior to the occurrence of the injury or onset of the
12illness that resulted in death, and has the care of unmarried
13children, including stepchildren, of the deceased member who are
14under 22 years of age or are so incapacitated, shall be paid four
15hundred fifty dollars ($450) per month if there is one child or five
16hundred thirty-eight dollars ($538) per month if there are two or
17more children. If there also are children who are not in the care of
18the surviving spouse, the portion of the allowance payable under
19this paragraph, assuming that these children were in the care of
20the surviving spouse, that is in excess of two hundred twenty-five
21dollars ($225) per month, shall be divided equally among all those
22children and payments made to the spouse and other children, as
23the case may be.

24(2) If there is no surviving spouse, or if the surviving spouse
25dies, and if there are unmarried children, including stepchildren,
26of the deceased member who are under 22 years of age or are so
27incapacitated, or if there are children not in the care of the spouse,
28the children shall be paid an allowance as follows:

29(A) If there is only one child, the child shall be paid two hundred
30twenty-five dollars ($225) per month.

31(B) If there are two children, the children shall be paid four
32hundred fifty dollars ($450) per month divided equally between
33them.

34(C) If there are three or more children, the children shall be paid
35five hundred thirty-eight dollars ($538) per month divided equally
36among them.

37(3) A surviving spouse who has attained or attains the age of
3862 years and, with respect to that surviving spouse, who was either
39continuously married to the member for at least one year prior to
40death, or was married to the member prior to the occurrence of the
P56   1injury or onset of the illness that resulted in death, shall be paid
2two hundred twenty-five dollars ($225) per month. No allowance
3shall be paid under this paragraph while the surviving spouse is
4receiving an allowance under paragraph (1) or while an allowance
5is being paid under subparagraph (C) of paragraph (2). The
6allowance paid under this paragraph shall be eighty-eight dollars
7($88) per month while an allowance is being paid under
8subparagraph (B) of paragraph (2).

9(4) If there is no surviving spouse or surviving child who
10qualifies for a 1959 survivor allowance, or if the surviving spouse
11dies and there is no surviving child, or if the surviving spouse dies
12and the children die or marry or, if not incapacitated, reach 22
13years of age, each of the member’s dependent parents who has
14attained or attains the age of 62 years, and who received at least
15one-half of his or her support from the member at the time of the
16member’s death, shall be paid two hundred twenty-five dollars
17 ($225) per month.

18(c) “Stepchildren,” for purposes of this section, shall include
19only stepchildren of the member living with him or her in a regular
20parent-child relationship at the time of his or her death.

21(d) This section shall apply to beneficiaries receiving 1959
22survivor allowances on July 1, 1975, as well as to beneficiaries
23with respect to the death of a state member occurring on or after
24July 1, 1975.

25(e) This section shall apply, with respect to benefits payable on
26and after July 1, 1981, to all members employed by a school
27employer, and school safety members employed with a school
28district or community college district as defined in subdivision (i)
29of Section 20057, except that it shall not apply, without contract
30amendment, with respect to safety members who became members
31after July 1, 1981. All assets and liabilities of all school employers,
32and their employees, on account of benefits provided under this
33article shall be pooled into a single account, and a single employer
34rate shall be established to provide benefits under this section on
35account of all miscellaneous members employed by a school
36employer and all safety members who are members on July 1,
371981.

38(f) This section does not apply to any member in the employ of
39an employer not subject to this section on January 1, 1994.

P57   1(g) On and after January 1, 2000, all state members covered by
2this section shall be covered by the benefit provided under Section
321574.7.

4(h) On and after the date determined by the board, all assets and
5liabilities of all contracting agencies subject to this section, and
6their employees, on account of benefits provided under this article
7shall be pooled into a single account, and a single employer rate
8shall be established to provide benefits under this section on
9account of members employed by a contracting agency that is
10subject to this section.

11(i) The rate of contribution of an employer subject to this section
12shall be figured using the term insurance valuation method. If a
13contracting agency that is subject to this section is projected to
14have a surplus in its 1959 survivor benefit account as of the date
15the assets and liabilities are first pooled, the surplus shall be applied
16to reduce its rate of contribution. If a contracting agency that is
17subject to this section is projected to have a deficit in its 1959
18survivor benefit account as of the date the assets and liabilities are
19first pooled, its rate of contribution shall be increased until the
20projected deficit is paid.

21

SEC. 36.  

Section 21573 of the Government Code is amended
22to read:

23

21573.  

(a) In lieu of benefits provided in Section 21571 or
24Section 21572, if the death benefit provided by Section 21532 is
25payable on account of a state member’s death that occurs under
26circumstances other than those described in subparagraph (F) of
27paragraph (1) of subdivision (a) of Section 21530, or if an
28allowance under Section 21546 is payable, the payment pursuant
29to subdivision (b) shall be made in the following order of priority:

30(1) The survivingbegin delete wife or surviving husbandend deletebegin insert spouseend insert of the
31member who has the care of unmarried children, including
32stepchildren, of the member who are under 22 years of age or are
33incapacitated because of a disability that began before and has
34continued without interruption after attainment of that age.

35(2) The guardian of surviving unmarried children, including
36stepchildren, of the member who are under 22 years of age or are
37so incapacitated.

38(3) The survivingbegin delete wife or surviving husbandend deletebegin insert spouseend insert of the
39member who does not qualify under paragraph (1).

40(4) Each surviving parent of the member.

P58   1(b) Regardless of the benefit provided by Section 21532 and of
2the beneficiary designated by the member under that section, or
3regardless of the allowance provided under Section 21546, the
4following applicable 1959 survivor allowance, under the conditions
5stated and from contributions of the state, shall be paid:

6(1) A surviving spouse who was either continuously married to
7the member for at least one year prior to death, or who was married
8to the member prior to the occurrence of the injury or onset of the
9illness that resulted in death, and has the care of unmarried
10children, including stepchildren, of the deceased member who are
11under 22 years of age or are so incapacitated, shall be paid seven
12hundred dollars ($700) per month if there is one child, or eight
13hundred forty dollars ($840) per month if there are two or more
14children. If there also are children who are not in the care of the
15surviving spouse, the portion of the allowance payable under this
16paragraph, assuming that these children were in the care of the
17surviving spouse, that is in excess of three hundred fifty dollars
18($350) per month, shall be divided equally among all those children
19and payments made to the spouse and other children, as the case
20may be.

21(2) If there is no surviving spouse, or if the surviving spouse
22dies, and if there are unmarried children, including stepchildren,
23of the deceased member who are under 22 years of age or are so
24incapacitated, or if there are children not in the care of the spouse,
25the children shall be paid an allowance as follows:

26(A) If there is only one child, the child shall be paid three
27hundred fifty dollars ($350) per month.

28(B) If there are two children, the children shall be paid seven
29hundred dollars ($700) per month divided equally between them.

30(C) If there are three or more children, the children shall be paid
31eight hundred forty dollars ($840) per month divided equally
32among them.

33(3) A surviving spouse who has attained or attains the age of
3462 years, and, with respect to that surviving spouse, who was either
35continuously married to the member for at least one year prior to
36death, or who was married to the member prior to the occurrence
37of the injury or onset of the illness that resulted in death, shall be
38paid three hundred fifty dollars ($350) per month. No allowance
39shall be paid under this paragraph while the surviving spouse is
40receiving an allowance under paragraph (1) or while an allowance
P59   1is being paid under subparagraph (C) of paragraph (2). The
2allowance paid under this paragraph shall be one hundred forty
3dollars ($140) per month while an allowance is being paid under
4subparagraph (B) of paragraph (2).

5(4) If there is no surviving spouse or surviving child who
6qualifies for the 1959 survivor allowance, or if the surviving spouse
7dies and there is no surviving child, or if the surviving spouse dies
8and the children die or marry or, if not incapacitated, reach 22
9years of age, each of the member’s dependent parents who has
10attained or attains the age of 62 years, and who received at least
11one-half of his or her support from the member at the time of the
12member’s death, shall be paid three hundred fifty dollars ($350)
13per month.

14(c) “Stepchildren,” for purposes of this section, shall include
15only stepchildren of the member living with the member in a
16regular parent-child relationship at the time of the death of the
17member.

18(d) This section shall apply to beneficiaries of state members
19whose death occurred before January 1, 1985. Where a surviving
20spouse attained the age of 62 years prior to January 1, 1987,
21entitlement shall exist retroactive to January 1, 1985, or to his or
22her 62nd birthday, whichever is later. All assets and liabilities of
23all state agencies and their employees on account of benefits
24provided to beneficiaries specified in this subdivision shall be
25pooled into a single account. The board shall transfer from the
26reserve for 1959 survivor contributions retained in the retirement
27fund an amount sufficient to pay the cost of the increased benefits
28provided by this subdivision for beneficiaries of members who
29died on or before December 31, 1984.

30(e) This section shall not apply to beneficiaries with respect to
31the death of a state member, except as provided in subdivision (i),
32occurring on or after January 1, 1985, unless provided for in a
33memorandum of understanding reached pursuant to Section 3517.5,
34or authorized by the Director of Personnel Administration for
35classifications of state employees that are excluded from, or not
36subject to, collective bargaining. The memorandum of
37understanding adopting this section shall be controlling without
38further legislative action, except that if those provisions of a
39memorandum of understanding require the expenditure of funds,
P60   1those provisions shall not become effective unless approved by
2the Legislature as provided by law.

3(f) This section shall apply, with respect to benefits payable on
4and after January 1, 1985, to school members and to school safety
5members, as defined in Section 20444. All assets and liabilities of
6all school employers, and their employees, on account of benefits
7provided under this article shall be pooled into a single account,
8and a single employer rate shall be established to provide benefits
9under this section on account of school members employed by a
10school employer.

11(g) This section shall apply to members of a contracting agency
12that, in its original contract or by amending its contract, first elects
13effective on or after January 1, 1985, and prior to July 1, 2001, to
14make this article applicable to local members employed by the
15agency. On or after January 1, 1985, and prior to July 1, 2001,
16contracting agencies already subject to Section 21571 or Section
1721572 may elect by contract amendment to be subject to this
18section. All assets and liabilities of all contracting agencies subject
19to this section, and their employees, on account of benefits provided
20under this article shall be pooled into a single account, and a single
21employer rate shall be established to provide benefits under this
22section on account of members employed by a contracting agency
23that is subject to this section. Any public agency first contracting
24with the board on or after January 1, 1994, and prior to July 1,
252001, or any contracting agency amending its contract to remove
26exclusions of member classifications on or after January 1, 1994,
27and prior to July 1, 2001, that has not, pursuant to Section 418 of
28Title 42 of the United States Code, entered into an agreement with
29the federal government for the coverage of its employees under
30the federal system, shall be subject to this section.

31(h) The rate of contribution of an employer subject to this section
32shall be figured using the term insurance valuation method. If a
33contracting agency that is subject to this section has a surplus in
34its 1959 survivor benefit account as of the date the contracting
35agency becomes subject to this section, the surplus shall be applied
36to reduce its rate of contribution. If a contracting agency that is
37subject to this section has a deficit in its 1959 survivor benefit
38account as of the date the contracting agency becomes subject to
39this section, its rate of contribution shall be increased until the
40deficit is paid.

P61   1(i) This section shall not apply to beneficiaries with respect to
2the death of a state member employed by the California State
3University occurring on or after January 1, 1988, unless provided
4for in a memorandum of understanding reached pursuant to Chapter
512 (commencing with Section 3560) of Division 4 of Title 1, or
6authorized by the Trustees of the California State University for
7employees excluded from collective bargaining. The memorandum
8of understanding shall be controlling without further legislative
9action, except that if the provisions of a memorandum of
10understanding require the expenditure of funds, the provisions
11shall not become effective unless approved by the Legislature in
12the annual Budget Act.

13(j) This section shall apply to local members employed by a
14contracting agency that has included this benefit in its contract
15with the board on or before June 30, 2001.

16(k) This section shall not apply to any contracting agency that
17first contracts with the board on or after July 1, 2001.

18(l) On and after January 1, 2000, all eligible state and school
19members covered by this section shall be covered by the benefit
20provided under Section 21574.7.

21

SEC. 37.  

Section 1373.5 of the Health and Safety Code is
22amended to read:

23

1373.5.  

Whenbegin delete a husband and wifeend deletebegin insert spousesend insert are both employed
24as employees, and both have enrolled themselves and their eligible
25family members under a group health care service plan provided
26by their respective employers, and each spouse is covered as an
27employee under the terms of the same master contract, each spouse
28may claim on his or her behalf, or on behalf of his or her enrolled
29dependents, the combined maximum contractual benefits to which
30an employee is entitled under the terms of the master contract, not
31to exceed in the aggregate 100 percent of the charge for the covered
32expense or service.

33This section shall apply to every group plan entered into,
34delivered, amended, or renewed in this state on or after January
351, 1978.

36

SEC. 38.  

Section 18080 of the Health and Safety Code is
37amended to read:

38

18080.  

Ownership registration and title to a manufactured
39home, mobilehome, commercial coach, or truck camper, or floating
P62   1home subject to registration may be held by two or more coowners
2as follows:

3(a)  A manufactured home, mobilehome, commercial coach,
4truck camper, or floating home may be registered in the names of
5two or more persons as joint tenants. Upon the death of a joint
6tenant, the interest of the decedent shall pass to the survivor or
7survivors. The signature of each joint tenant or survivor or
8survivors, as the case may be, shall be required to transfer or
9encumber the title to the manufactured home, mobilehome,
10commercial coach, truck camper, or floating home.

11(b)  A manufactured home, mobilehome, commercial coach,
12truck camper, or floating home may be registered in the names of
13two or more persons as tenants in common. If the names of the
14tenants in common are separated by the wordbegin delete “and”,end deletebegin insert “and,”end insert each
15tenant in common may transfer his or her individual interest in the
16manufactured home, mobilehome,begin delete commericalend deletebegin insert commercialend insert coach,
17truck camper, or floating home without the signature of the other
18tenant or tenants in common. However, the signature of each tenant
19in common shall be required to transfer full interest in the title to
20a new registered owner. If the names of the tenants in common
21are separated by the wordbegin delete “or”,end deletebegin insert “or,”end insert any one of the tenants in
22common may transfer full interest in the title to the manufactured
23home, mobilehome, commercial coach, truck camper, or floating
24home to a new registered owner without the signature of the other
25tenant or tenants in common. The signature of each tenant in
26common is required in all cases to encumber the title to the
27manufactured home, mobilehome, commercial coach, truck camper,
28or floating home.

29(c)  A manufactured home, mobilehome, commercial coach,
30truck camper, or floating home may be registered as community
31property in the names ofbegin delete a husband and wife.end deletebegin insert the spouses.end insert The
32signature of each spouse shall be required to transfer or encumber
33the title to the manufactured home, mobilehome, commercial
34coach, truck camper, or floating home.

35(d)  All manufactured homes, mobilehomes, commercial
36coaches, truck campers, and floating homes registered, on or before
37January 1, 1985, in the names of two or more persons as tenants
38in common, as provided in subdivision (b), shall be considered to
39be the same as if the names of the tenants in common were
40separated by the word “or,” as provided in subdivision (b).

P63   1

SEC. 39.  

Section 25299.54 of the Health and Safety Code is
2amended to read:

3

25299.54.  

(a)  Except as provided in subdivisions (b), (c), (d),
4(e), (g), and (h), an owner or operator, required to perform
5corrective action pursuant to Section 25296.10, or an owner or
6operator who, as of January 1, 1988, is required to perform
7corrective action, who has initiated this action in accordance with
8Division 7 (commencing with Section 13000) of the Water Code,
9who is undertaking corrective action in compliance with waste
10discharge requirements or other orders issued pursuant to Division
117 (commencing with Section 13000) of the Water Code, or Chapter
126.7 (commencing with Section 25280), may apply to the board for
13satisfaction of a claim filed pursuant to this article.

14(b) A person who has failed to comply with Article 3
15(commencing with Section 25299.30) is ineligible to file a claim
16pursuant to this section.

17(c) An owner or operator of an underground storage tank
18containing petroleum is ineligible to file a claim pursuant to this
19section if the person meets both of the following conditions:

20(1) The person knew, before January 1, 1988, of the
21unauthorized release of petroleum which is the subject of the claim.

22(2) The person did not initiate, on or before June 30, 1988, any
23corrective action in accordance with Division 7 (commencing with
24Section 13000) of the Water Code concerning the release, or the
25person did not, on or before June 30, 1988, initiate corrective action
26in accordance with Chapter 6.7 (commencing with Section 25280)
27or the person did not initiate action on or before June 30, 1988, to
28come into compliance with waste discharge requirements or other
29orders issued pursuant to Division 7 (commencing with Section
3013000) of the Water Code concerning the release.

31(d) An owner or operator who violates Section 25296.10 or a
32corrective action order, directive, notification, or approval order
33issued pursuant to this chapter, Chapter 6.7 (commencing with
34Section 25280) of this code, or Division 7 (commencing with
35Section 13000) of the Water Code, is liable for a corrective action
36cost that results from the owner’s or operator’s violation and is
37ineligible to file a claim pursuant to this section.

38(e) Notwithstanding this chapter, a person who owns a tank
39located underground that is used to store petroleum may apply to
40the board for satisfaction of a claim, and the board may pay the
P64   1claim pursuant to Section 25299.57 without making the finding
2specified in paragraph (3) of subdivision (d) of Section 25299.57
3if all of the following apply:

4(1) The tank meets one of the following requirements:

5(A) The tank is located at the residence of a person on property
6used exclusively for residential purposes at the time of discovery
7of the unauthorized release of petroleum.

8(B) The tank owner demonstrates that the tank is located on
9property that, on and after January 1, 1985, is not used for
10agricultural purposes, the tank is of a type specified in
11subparagraph (B) of paragraph (1) of subdivision (y) of Section
1225281, and the petroleum in the tank is used solely for the purposes
13specified in subparagraph (B) of paragraph (1) of subdivision (y)
14of Section 25281 on and after January 1, 1985.

15(2) The tank is not a tank described in subparagraph (A) of
16paragraph (1) of subdivision (y) of Section 25281 and the tank is
17not used on or after January 1, 1985, for the purposes specified in
18that subparagraph.

19(3) The claimant has complied with Section 25299.31 and the
20permit requirements of Chapter 6.7 (commencing with Section
2125280), or the claimant is not subject to the requirements of those
22provisions.

23(f) Whenever the board has authorized the prepayment of a
24claim pursuant to Section 25299.57, and the amount of money
25available in the fund is insufficient to pay the claim, the owner or
26operator shall remain obligated to undertake the corrective action
27in accordance with Section 25296.10.

28(g) The board shall not reimburse a claimant for any eligible
29costs for which the claimant has been, or will be, compensated by
30another person. This subdivision does not affect reimbursement
31of a claimant from the fund under either of the following
32circumstances:

33(1) The claimant has a written contract, other than an insurance
34contract, with another person that requires the claimant to
35reimburse the person for payments the person has provided the
36claimant pending receipt of reimbursement from the fund.

37(2) An insurer has made payments on behalf of the claimant
38pursuant to an insurance contract and either of the following
39applies:

P65   1(A) The insurance contract explicitly coordinates insurance
2benefits with the fund and requires the claimant to do both of the
3following:

4(i) Maintain the claimant’s eligibility for reimbursement of costs
5pursuant to this chapter by complying with all applicable eligibility
6requirements.

7(ii) Reimburse the insurer for costs paid by the insurer pending
8reimbursement of those costs by the fund.

9(B) The claimant received a letter of commitment prior to June
1030, 1999, for the occurrence and the claimant is required to
11reimburse the insurer for any costs paid by the insurer pending
12reimbursement of those costs by the fund.

13(h) (1)  Except as provided in paragraph (2), a person who
14purchases or otherwise acquires real property on which an
15underground storage tank or tank specified in subdivision (e) is
16situated shall not be reimbursed by the board for a cost attributable
17to an occurrence that commenced prior to the acquisition of the
18real property if both of the following conditions apply:

19(A) The purchaser or acquirer knew, or in the exercise of
20reasonable diligence would have discovered, that an underground
21storage tank or tank specified in subdivision (e) was located on
22the real property being acquired.

23(B) A person who owned the site or owned or operated an
24underground storage tank or tank specified in subdivision (e) at
25the site during or after the occurrence and prior to acquisition by
26the purchaser or acquirer would not have been eligible for
27reimbursement from the fund.

28(2) Notwithstanding paragraph (1), if the claim is filed on or
29after January 1, 2003, the board may reimburse the eligible costs
30claimed by a person who purchases or otherwise acquires real
31property on which an underground storage tank or tank specified
32in subdivision (e) is situated, if all of the following conditions
33apply:

34(A) The claimant is the owner or operator of the underground
35storage tank or tank specified in subdivision (e) that had an
36occurrence that commenced prior to the owner’s acquisition of the
37real property.

38(B) The claimant satisfies all eligibility requirements, other than
39those specified in paragraph (1).

P66   1(C) The claimant is not an affiliate of a person whose act or
2omission caused or would cause ineligibility for the fund.

3(3) If the board reimburses a claim pursuant to paragraph (2),
4a person specified in subparagraph (B) of paragraph (1), other than
5a person who is ineligible for reimbursement from the fund solely
6because the property was acquired from another person who was
7ineligible for reimbursement from the fund, shall be liable for the
8amount paid from the fund. The Attorney General, upon request
9of the board, shall bring a civil action to recover the liability
10imposed under this paragraph. All money recovered by the
11Attorney General under this paragraph shall be deposited in the
12fund.

13(4) The liability established pursuant to paragraph (3) does not
14limit or supersede liability under any other provision of state or
15federal law, including common law.

16(5) For purposes of this subdivision, the following definitions
17shall apply:

18(A) “Affiliate” means a person who has one or more of the
19following relationships with another person:

20(i) Familial relationship.

21(ii) Fiduciary relationship.

22(iii) A relationship of direct or indirect control or shared
23interests.

24(B) Affiliates include, but are not limited to, any of the
25following:

26(i) Parent corporation and subsidiary.

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

28(iii) Business entities involved in a reorganization, as defined
29in Section 181 of the Corporations Code.

30(iv) Corporate officer and corporation.

31(v) Shareholder that owns a controlling block of voting stock
32and the corporation.

33(vi) Partner and the partnership.

34(vii) Member and a limited liability company.

35(viii) Franchiser and franchisee.

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

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

38(xi) Principal and agent.

39(C) “Familial relationship” means relationships between family
40members, including, and limited to, abegin delete husband, wife,end deletebegin insert spouse,end insert child,
P67   1stepchild, parent, grandparent, grandchild, brother, sister,
2stepbrother, stepsister, stepmother, stepfather, mother-in-law,
3father-in-law, brother-in-law, sister-in-law, daughter-in-law,
4son-in-law, and, if related by blood, uncle, aunt, niece, or nephew.

5(D) “Purchases or otherwise acquires real property” means the
6acquisition of fee title ownership or the acquisition of the lessee’s
7interest in a ground lease of real property on which one or more
8underground storage tanks are located if the lease has an initial
9original term, including unilateral extension or renewal rights, of
10not less than 35 years.

11(i) The Legislature finds and declares that the changes made to
12subparagraph (A) of paragraph (1) of subdivision (e) by Chapter
131290 of the Statutes of 1992 are declaratory of existing law.

14(j) The Legislature finds and declares that the amendment of
15subdivisions (a) and (g) by Chapter 328 of the Statutes of 1999 is
16declaratory of existing law.

17

SEC. 40.  

Section 32501 of the Health and Safety Code is
18amended to read:

19

32501.  

Any person desiring in hisbegin insert or herend insert lifetime to promote
20the public welfare by founding, endowing, and having maintained
21within thisbegin delete Stateend deletebegin insert stateend insert a hospital for the relief of the sick, and for
22use as a training school for nurses may, by grant in writing, convey
23to a trustee named in the grant and to the successor of such trustee,
24any of hisbegin insert or herend insert property situated within thisbegin delete State.end deletebegin insert state.end insert If hebegin insert or
25sheend insert
is married and the property is community, bothbegin delete he and his wifeend delete
26begin insert spousesend insert shall join in the grant.

27

SEC. 41.  

Section 10112 of the Insurance Code is amended to
28read:

29

10112.  

Subject to Section 2459 of the Probate Code, in respect
30to life or disability insurance, or annuity contracts (except as
31provided in Sections 2500 to 2507, inclusive, of the Probate Code
32and Section 3500 of the Probate Code and Chapter 4 (commencing
33with Section 3600) of Part 8 of Division 4 of the Probate Code),
34heretofore or hereafter issued to or upon the life of any person not
35of the full age of 18 years for the benefit of such minor or for the
36benefit of the father, mother,begin delete husband, wife,end deletebegin insert spouse,end insert child, brother,
37or sister, of such minor, or issued to such minor, subject to written
38consent of a parent or guardian, upon the life of any person in
39whom such minor has an insurable interest for the benefit of
40himself or such minor’s father, mother,begin delete husband, wife,end deletebegin insert spouse,end insert
P68   1 child, brother or sister, such minor shall not, by reason only of
2such minority, be deemed incompetent to contract for such
3insurance or annuity, or for the surrender thereof, or to exercise
4all contractual rights thereunder, or, subject to approval of a parent
5or guardian, to give a valid discharge for any benefit accruing or
6for any money payable thereunder; provided, that all such contracts
7made by a minor under the age of 16 years, as determined by the
8nearest birthday, shall have the written consent of a parent or
9guardian, and that the exercise of all contractual rights under such
10contracts, or the surrender thereof, or the giving of a valid discharge
11for any benefit accruing or money payable thereunder, in the case
12of a minor under the age of 16 years, as determined by the nearest
13birthday, shall have the written consent of a parent or guardian.

14All such contracts made by a minor not of the full age of 18
15years which may result in any personal liability for assessment
16shall have the written assumption of any such liability by a parent
17or guardian in consideration of the issuance of the contract. Such
18assumption shall be in a form approved by the commissioner,
19reasonably designed to inform the parent or guardian of the liability
20thus assumed.

21Such assumption of liability may be made a part of and included
22with any written consent of such parent or guardian required under
23other provisions of this section and it may be provided therein that
24such assumption shall cover only up to the anniversary date of the
25policy nearest to the member’s birthday at which he or she attains
26age 18.

27

SEC. 42.  

Section 10121.5 of the Insurance Code is amended
28to read:

29

10121.5.  

(a) Whenbegin delete a husband and wifeend deletebegin insert spousesend insert are both
30employed as employees, and both have enrolled themselves and
31their eligible family members under a group policy of disability
32insurance provided by their respective employers, and each spouse
33is covered as an employee under the terms of the same master
34policy, each spouse may claim on his or her behalf, or on behalf
35of his or her enrolled dependents, the combined maximum
36contractual benefits to which an employee is entitled under the
37terms of the master policy, not to exceed in the aggregate 100
38percent of the charge for the covered expense or service.

39(b) Whenbegin delete a husband and wifeend deletebegin insert spousesend insert are both employed as
40employees, and both have enrolled themselves and their eligible
P69   1family members under a self-insured employee welfare benefit
2plan provided by their respective employers, and each spouse is
3covered as an employee under the terms of the same master
4contract, each spouse may claim on his or her behalf, or on behalf
5of his or her enrolled dependents, the combined maximum
6contractual benefits to which an employee is entitled under the
7terms of the master contract, not to exceed in the aggregate 100
8percent of the charge for the covered expense or service.

9(c) This section shall apply to every group disability insurance
10policy and self-insured employee welfare benefit plan which is
11entered into, issued, delivered, amended, or renewed in this state
12on or after January 1, 1978.

13

SEC. 43.  

Section 10320 of the Insurance Code is amended to
14read:

15

10320.  

No policy of accident and sickness insurance shall be
16delivered or issued for delivery to any person in this State unless:

17(a) The entire money and other considerations therefor are
18expressed therein; and

19(b) The time at which the insurance takes effect and terminates
20is expressed therein; and

21(c) It purports to insure only one person, except that a policy
22may insure, originally or by subsequent amendment, upon the
23application of the head of a family who shall be deemed the
24policyholder, any two or more eligible members of that family,
25includingbegin delete husband, wife,end deletebegin insert spouse,end insert dependent children or any
26children under a specified age which shall not exceed 19 years and
27any other person dependent upon the policyholder; and

28(d) The style, arrangement and over-all appearance of the policy
29give no undue prominence to any portion of the text, and unless
30every printed portion of the text of the policy and of any
31endorsements or attached papers is plainly printed in light-faced
32type of a style in general use, the size of which shall be uniform
33and not less than 10-point with a lower case unspaced alphabet
34length not less than 120-point (the “text” shall include all printed
35matter except the name and address of the insurer, name or title
36of the policy, the brief description, if any, and captions and
37subcaptions); and

38(e) The exceptions and reductions of indemnity are set forth in
39the policy and, except those which are set forth in Article 4a or 5a
40of this chapter, are printed, at the insurer’s option, either included
P70   1with the benefit provision to which they apply, or under an
2appropriate caption such as “Exceptions,” or “Exceptions and
3Reductions”; provided, that if an exception or reduction specifically
4applies only to a particular benefit of the policy, a statement of
5such exception or reduction shall be included with the benefit
6provision to which it applies; and

7(f) Each such form, including riders and endorsements, shall be
8identified by a form number in the lower left-hand corner of the
9first page thereof; and

10(g) It contains no provision purporting to make any portion of
11the charter, rules, constitution, or by-laws of the insurer a part of
12the policy unless such portion is set forth in full in the policy,
13except in the case of the incorporation of, or reference to, a
14statement of rates or classification of risks, or short-rate table filed
15with the commissioner; and

16(h) If the policy contains amendment, change, limitation,
17alteration, or restriction of the printed text by endorsement, or by
18any means other than rider upon a separate piece of paper made a
19part of such policy; and

20(i) If any portion of such policy purports to reduce benefits by
21reason of age of the insured and such reduction, in accordance
22with the age of the insured as stated in hisbegin insert or herend insert application, would
23be effective on the issue date of the policy.

24

SEC. 44.  

Section 10493 of the Insurance Code is amended to
25read:

26

10493.  

Any incorporated or unincorporated benefit and relief
27association organized before January 15, 1951, may procure a
28certificate of exemption from the commissioner if it complies with
29all of the following:

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

31(b) As respects life or disability or life and disability insurance
32transacted by it, it is of an entirely nonprofit nature.

33(c) Any one of the following requirements as to membership
34and purpose:

35(1) It is composed of and its membership limited to the
36appointive officers and employees of a public school district or
37districts and/or the pupils of any such district or districts, or of any
38private school or schools.

39(2) It is composed of and its membership limited to the
40appointive officers and employees of a municipal playground
P71   1system, or the systems of two or more municipalities united in a
2league, federation or other association for the purpose of promoting
3intercity competitions or other activities, and/or the participants
4in dancing, recreational, sporting, educational, social and/or
5theatrical activities sponsored and/or directed by such system or
6systems and carried on through the use of any of the facilities of
7such system or systems.

8(3) Its membership in this state is 1,000 or more and it is either
9an organization of a purely religious or benevolent character or its
10membership is limited to the members of such an organization.

11(4) It is composed of and its membership is limited to the
12members of another organization which other organization is of a
13purely religious or benevolent character and has a total membership
14in this state of not less than 1,000.

15(5) It is a domestic organization, lodge, society or order which
16prior to September 19, 1947, provided life or disability benefits
17or both such benefits to its members and

18(A) Is of a charitable, benevolent or beneficent character or
19becomes such within one year from September 4, 1951, and in
20both instances is thereafter of such character, and

21(B) Operates in such a manner that the payment of such benefits
22even though it be one of the express purposes of such organization,
23lodge or order, is as a matter of fact incidental to its charitable,
24benevolent or beneficent purposes or within one year from
25September 4, 1951, operates in such a manner and in both instances
26thereafter operates in such a manner.

27(6) Officers and employees of a common employer, and related
28dependents of such officers and employees, comprisingbegin delete wives,
29husbandsend delete
begin insert spousesend insert and unmarried dependent children under 19
30years of age, and living in the same household.

31(d) Pays a filing fee in the amount of seven hundred eight dollars
32($708).

33

SEC. 45.  

Section 10494.6 of the Insurance Code is amended
34to read:

35

10494.6.  

Any employer who qualifies for a certificate of
36exemption under Section 10494.5 by virtue of which certificate
37he or she maintains a plan for furnishing disability benefits to his
38or her employees may, if he or she elects, make available for the
39related dependents of his or her employees, comprisingbegin delete wives,
40husbandsend delete
begin insert spousesend insert and unmarried dependent children living in the
P72   1same household, a supplemental plan of disability benefits
2containing any or all of the following benefits, hospital, surgical
3and medical; provided, that as to the supplemental plan the
4Insurance Commissioner finds that all of the following exist:

5(a) The supplemental plan shall be separately stated, setting out
6all of the provisions of coverage.

7(b) The plan shall set out the respective contributions of the
8employer and employees. All contributions of employees received
9or retained by the employer shall be trust funds and shall be
10separately accounted for by the employer and may not inure to the
11benefit of the employer in any manner whatsoever.

12(c) The plan permits the disabled individual a free choice of
13physician and surgeon, or podiatrist in the case of those services
14that are within the scope of practice of podiatric medicine, as
15defined in Section 2472 of the Business and Professions Code,
16and hospital.

17(d) The employer agrees to assume 50 percent of the cost of
18maintaining the plan, and he or she further agrees to guarantee the
19benefits if the contributions required for the supplementary benefits
20are not sufficient to pay the cost of same. The funds necessary to
21discharge the employer’s 50 percent assumption shall be trust
22funds and shall be separately accounted for by him or her.

23

SEC. 46.  

Section 3503 of the Labor Code is amended to read:

24

3503.  

No person is a dependent of any deceased employee
25unless in good faith a member of the family or household of the
26employee, or unless the person bears to the employee the relation
27ofbegin delete husband or wife,end deletebegin insert spouse,end insert child, posthumous child, adopted child
28or stepchild, grandchild, father or mother, father-in-law or
29mother-in-law, grandfather or grandmother, brother or sister, uncle
30or aunt, brother-in-law or sister-in-law,begin insert orend insert nephew or niece.

31

SEC. 47.  

Section 152.3 of the Penal Code is amended to read:

32

152.3.  

(a) Any person who reasonably believes that he or she
33has observed the commission of any of the following offenses
34where the victim is a child under the age of 14 years shall notify
35a peace officer, as defined in Chapter 4.5 (commencing with
36Section 830) of Title 3 of Part 2:

37(1) Murder.

38(2) Rape.

39(3) A violation of paragraph (1) of subdivision (b) of Section
40288 of the Penal Code.

P73   1(b) This section shall not be construed to affect privileged
2relationships as provided by law.

3(c) The duty to notify a peace officer imposed pursuant to
4subdivision (a) is satisfied if the notification or an attempt to
5provide notice is made by telephone or any other means.

6(d) Failure to notify as required pursuant to subdivision (a) is a
7misdemeanor and is punishable by a fine of not more than one
8thousand five hundred dollars ($1,500), by imprisonment in a
9county jail for not more than six months, or by both that fine and
10imprisonment.

11(e) The requirements of this section shall not apply to the
12following:

13(1) A person who is related to either the victim or the offender,
14including abegin delete husband, wife,end deletebegin insert spouse,end insert parent, child, brother, sister,
15grandparent, grandchild, or other person related by consanguinity
16or affinity.

17(2) A person who fails to report based on a reasonable mistake
18of fact.

19(3) A person who fails to report based on a reasonable fear for
20his or her own safety or for the safety of his or her family.

21

SEC. 48.  

Section 197 of the Penal Code is amended to read:

22

197.  

Homicide is also justifiable when committed by any person
23in any of the following cases:

241. When resisting any attempt to murder any person, or to
25commit a felony, or to do some great bodily injury upon any
26person; or,

272. When committed in defense of habitation, property, or person,
28against one who manifestly intends or endeavors, by violence or
29surprise, to commit a felony, or against one who manifestly intends
30and endeavors, in a violent, riotous or tumultuous manner, to enter
31the habitation of another for the purpose of offering violence to
32any person therein; or,

333. When committed in the lawful defense of such person, or of
34abegin delete wife or husband,end deletebegin insert spouse,end insert parent, child, master, mistress, or servant
35of such person, when there is reasonable ground to apprehend a
36design to commit a felony or to do some great bodily injury, and
37imminent danger of such design being accomplished; but such
38person, or the person in whose behalf the defense was made, if he
39was the assailant or engaged in mutual combat, must really and in
P74   1good faith have endeavored to decline any further struggle before
2the homicide was committed; or,

34. When necessarily committed in attempting, by lawful ways
4and means, to apprehend any person for any felony committed, or
5in lawfully suppressing any riot, or in lawfully keeping and
6preserving the peace.

7

SEC. 49.  

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

8

270e.  

No other evidence shall be required to prove marriage
9ofbegin delete husband and wife,end deletebegin insert spouses,end insert or that a person is the lawful father
10or mother of a child or children, than is or shall be required to
11prove such facts in a civil action. In all prosecutions under either
12Section 270a or 270 of this code, Sections 970, 971, and 980 of
13the Evidence Code do not apply, and bothbegin delete husband and wifeend delete
14begin insert spousesend insert shall be competent to testify to any and all relevant matters,
15including the fact of marriage and the parentage of a child or
16children. Proof of the abandonment and nonsupport of a spouse,
17or of the omission to furnish necessary food, clothing, shelter, or
18of medical attendance for a child or children is prima facie evidence
19that such abandonment and nonsupport or omission to furnish
20necessary food, clothing, shelter or medical attendance is willful.
21In any prosecution under Section 270, it shall be competent for
22the people to prove nonaccess of husband to wife or any other fact
23establishing nonpaternity of a husband. In any prosecution pursuant
24to Section 270, the final establishment of paternity or nonpaternity
25in another proceeding shall be admissible as evidence of paternity
26or nonpaternity.

27

SEC. 50.  

Section 273.5 of the Penal Code is amended to read:

28

273.5.  

(a) Any person who willfully inflicts corporal injury
29resulting in a traumatic condition upon a victim described in
30subdivision (b) is guilty of a felony, and upon conviction thereof
31shall be punished by imprisonment in the state prison for two,
32three, or four years, or in a county jail for not more than one year,
33or by a fine of up to six thousand dollars ($6,000), or by both that
34fine and imprisonment.

35(b) Subdivision (a) shall apply if the victim is or was one or
36more of the following:

37(1) The offender’s spouse or former spouse.

38(2) The offender’s cohabitant or former cohabitant.

39(3) The offender’s fiancé or fiancée, or someone with whom
40the offender has, or previously had, an engagement or dating
P75   1relationship, as defined in paragraph (10) of subdivision (f) of
2Section 243.

3(4) The mother or father of the offender’s child.

4(c) Holding oneself out to be thebegin delete husband or wifeend deletebegin insert spouseend insert of the
5person with whom one is cohabiting is not necessary to constitute
6cohabitation as the term is used in this section.

7(d) As used in this section, “traumatic condition” means a
8condition of the body, such as a wound, or external or internal
9injury, including, but not limited to, injury as a result of
10strangulation or suffocation, whether of a minor or serious nature,
11caused by a physical force. For purposes of this section,
12“strangulation” and “suffocation” include impeding the normal
13breathing or circulation of the blood of a person by applying
14pressure on the throat or neck.

15(e) For the purpose of this section, a person shall be considered
16the father or mother of another person’s child if the alleged male
17parent is presumed the natural father under Sections 7611 and 7612
18of the Family Code.

19(f) (1) Any person convicted of violating this section for acts
20occurring within seven years of a previous conviction under
21subdivision (a), or subdivision (d) of Section 243, or Section 243.4,
22244, 244.5, or 245, shall be punished by imprisonment in a county
23jail for not more than one year, or by imprisonment in the state
24prison for two, four, or five years, or by both imprisonment and a
25fine of up to ten thousand dollars ($10,000).

26(2) Any person convicted of a violation of this section for acts
27occurring within seven years of a previous conviction under
28subdivision (e) of Section 243 shall be punished by imprisonment
29in the state prison for two, three, or four years, or in a county jail
30for not more than one year, or by a fine of up to ten thousand
31 dollars ($10,000), or by both that imprisonment and fine.

32(g) If probation is granted to any person convicted under
33subdivision (a), the court shall impose probation consistent with
34the provisions of Section 1203.097.

35(h) If probation is granted, or the execution or imposition of a
36sentence is suspended, for any defendant convicted under
37subdivision (a) who has been convicted of any prior offense
38specified in subdivision (f), the court shall impose one of the
39following conditions of probation:

P76   1(1) If the defendant has suffered one prior conviction within the
2previous seven years for a violation of any offense specified in
3subdivision (f), it shall be a condition of probation, in addition to
4the provisions contained in Section 1203.097, that he or she be
5imprisoned in a county jail for not less than 15 days.

6(2) If the defendant has suffered two or more prior convictions
7within the previous seven years for a violation of any offense
8specified in subdivision (f), it shall be a condition of probation, in
9addition to the provisions contained in Section 1203.097, that he
10or she be imprisoned in a county jail for not less than 60 days.

11(3) The court, upon a showing of good cause, may find that the
12mandatory imprisonment required by this subdivision shall not be
13imposed and shall state on the record its reasons for finding good
14cause.

15(i) If probation is granted upon conviction of a violation of
16subdivision (a), the conditions of probation may include, consistent
17with the terms of probation imposed pursuant to Section 1203.097,
18in lieu of a fine, one or both of the following requirements:

19(1) That the defendant make payments to a battered women’s
20shelter, up to a maximum of five thousand dollars ($5,000),
21pursuant to Section 1203.097.

22(2) (A) That the defendant reimburse the victim for reasonable
23costs of counseling and other reasonable expenses that the court
24finds are the direct result of the defendant’s offense.

25(B) For any order to pay a fine, make payments to a battered
26women’s shelter, or pay restitution as a condition of probation
27under this subdivision, the court shall make a determination of the
28defendant’s ability to pay. An order to make payments to a battered
29women’s shelter shall not be made if it would impair the ability
30of the defendant to pay direct restitution to the victim or
31court-ordered child support. If the injury to a married person is
32caused in whole or in part by the criminal acts of his or her spouse
33in violation of this section, the community property may not be
34used to discharge the liability of the offending spouse for restitution
35to the injured spouse, required by Section 1203.04, as operative
36on or before August 2, 1995, or Section 1202.4, or to a shelter for
37costs with regard to the injured spouse and dependents, required
38by this section, until all separate property of the offending spouse
39is exhausted.

P77   1(j) Upon conviction under subdivision (a), the sentencing court
2shall also consider issuing an order restraining the defendant from
3any contact with the victim, which may be valid for up to 10 years,
4as determined by the court. It is the intent of the Legislature that
5the length of any restraining order be based upon the seriousness
6of the facts before the court, the probability of future violations,
7and the safety of the victim and his or her immediate family. This
8protective order may be issued by the court whether the defendant
9is sentenced to state prison or county jail, or if imposition of
10sentence is suspended and the defendant is placed on probation.

11(k) If a peace officer makes an arrest for a violation of this
12section, the peace officer is not required to inform the victim of
13his or her right to make a citizen’s arrest pursuant to subdivision
14(b) of Section 836.

15

SEC. 51.  

Section 281 of the Penal Code is amended to read:

16

281.  

(a) Every person having abegin delete husband or wifeend deletebegin insert spouseend insert living,
17who marries any other person, except in the cases specified in
18Section 282, is guilty of bigamy.

19(b) Upon a trial for bigamy, it is not necessary to prove either
20of the marriages by the register, certificate, or other record evidence
21thereof, but the marriages may be proved by evidence which is
22admissible to prove a marriage in other cases; and when the second
23marriage took place out of this state, proof of that fact,
24accompanied with proof of cohabitation thereafter in this state, is
25sufficient to sustain the charge.

26

SEC. 52.  

Section 282 of the Penal Code is amended to read:

27

282.  

Section 281 does not extend to any of the following:

28(a) To any person by reason of any former marriage whose
29begin delete husband or wifeend deletebegin insert spouseend insert by such marriage has been absent for five
30successive years without being known to such person within that
31time to be living.

32(b) To any person by reason of any former marriage which has
33been pronounced void, annulled, or dissolved by the judgment of
34a competent court.

35

SEC. 53.  

Section 284 of the Penal Code is amended to read:

36

284.  

Every person who knowingly and willfully marries the
37begin delete husband or wifeend deletebegin insert spouseend insert of another, in any case in which such
38begin delete husband or wifeend deletebegin insert spouseend insert would be punishable under the provisions
39of this chapter, is punishable by fine not less than five thousand
P78   1dollars ($5,000), or by imprisonment pursuant to subdivision (h)
2of Section 1170.

3

SEC. 54.  

Section 534 of the Penal Code is amended to read:

4

534.  

Every married person who falsely and fraudulently
5represents himself or herself as competent to sell or mortgage any
6real estate, to the validity of which sale or mortgage the assent or
7concurrence of hisbegin delete wifeend delete or herbegin delete husbandend deletebegin insert spouseend insert is necessary, and
8under such representations willfully conveys or mortgages the
9same, is guilty of felony.

10

SEC. 55.  

Section 4002 of the Penal Code is amended to read:

11

4002.  

(a) Persons committed on criminal process and detained
12for trial, persons convicted and under sentence, and persons
13committed upon civil process, shall not be kept or put in the same
14room, nor shall male and female prisoners, exceptbegin delete husband and
15wife,end delete
begin insert spouses,end insert sleep, dress or undress, bathe, or perform eliminatory
16functions in the same room. However, persons committed on
17criminal process and detained for trial may be kept or put in the
18same room with persons convicted and under sentence for the
19purpose of participating in supervised activities and for the purpose
20of housing, provided, that the housing occurs as a result of a
21classification procedure that is based upon objective criteria,
22including consideration of criminal sophistication, seriousness of
23crime charged, presence or absence of assaultive behavior, age,
24and other criteria that will provide for the safety of the prisoners
25and staff.

26(b) Inmates who are held pending civil process under the
27sexually violent predator laws shall be held in administrative
28 segregation. For purposes of this subdivision, administrative
29segregation means separate and secure housing that does not
30involve any deprivation of privileges other than what is necessary
31to protect the inmates and staff. Consistent with Section 1610, to
32the extent possible, the person shall continue in his or her course
33of treatment, if any. An alleged sexually violent predator held
34pending civil process may waive placement in secure housing by
35petitioning the court for a waiver. In order to grant the waiver, the
36court must find that the waiver is voluntary and intelligent, and
37that granting the waiver would not interfere with any treatment
38programming for the person requesting the waiver. A person
39granted a waiver shall be placed with inmates charged with similar
P79   1offenses or with similar criminal histories, based on the objective
2criteria set forth in subdivision (a).

3(c) Nothing in this section shall be construed to impose any
4requirement upon a county to confine male and female prisoners
5in the same or an adjoining facility or impose any duty upon a
6county to establish or maintain programs which involve the joint
7participation of male and female prisoners.

8

SEC. 56.  

Section 13700 of the Penal Code is amended to read:

9

13700.  

As used in this title:

10(a) “Abuse” means intentionally or recklessly causing or
11attempting to cause bodily injury, or placing another person in
12reasonable apprehension of imminent serious bodily injury to
13himself or herself, or another.

14(b) “Domestic violence” means abuse committed against an
15adult or a minor who is a spouse, former spouse, cohabitant, former
16cohabitant, or person with whom the suspect has had a child or is
17having or has had a dating or engagement relationship. For
18purposes of this subdivision, “cohabitant” means two unrelated
19adult persons living together for a substantial period of time,
20resulting in some permanency of relationship. Factors that may
21determine whether persons are cohabiting include, but are not
22limited to, (1) sexual relations between the parties while sharing
23the same living quarters, (2) sharing of income or expenses, (3)
24joint use or ownership of property, (4) whether the parties hold
25themselves out asbegin delete husband and wife,end deletebegin insert spouses,end insert (5) the continuity
26of the relationship, and (6) the length of the relationship.

27(c) “Officer” means any officer or employee of a local police
28department or sheriff’s office, and any peace officer of the
29Department of the California Highway Patrol, the Department of
30Parks and Recreation, the University of California Police
31Department, or the California State University and College Police
32Departments, as defined in Section 830.2, a peace officer of the
33Department of General Services of the City of Los Angeles, as
34defined in subdivision (c) of Section 830.31, a housing authority
35patrol officer, as defined in subdivision (d) of Section 830.31, a
36peace officer as defined in subdivisions (a) and (b) of Section
37830.32, or a peace officer as defined in subdivision (a) of Section
38830.33.

39(d) “Victim” means a person who is a victim of domestic
40violence.

P80   1

SEC. 57.  

Section 59 of the Probate Code is amended to read:

2

59.  

“Predeceased spouse” means a person who died before the
3decedent while married to the decedent, except that the term does
4not include any of the following:

5(a) A person who obtains or consents to a final decree or
6judgment of dissolution of marriage from the decedent or a final
7decree or judgment of annulment of their marriage, which decree
8or judgment is not recognized as valid in this state, unless they (1)
9subsequently participate in a marriage ceremony purporting to
10marry each to the other or (2) subsequently live together asbegin delete husband
11and wife.end delete
begin insert spouses.end insert

12(b) A person who, following a decree or judgment of dissolution
13or annulment of marriage obtained by the decedent, participates
14in a marriage ceremony to a third person.

15(c) A person who was a party to a valid proceeding concluded
16by an order purporting to terminate all marital property rights.

17

SEC. 58.  

Section 78 of the Probate Code is amended to read:

18

78.  

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

19(a) A person whose marriage to the decedent has been dissolved
20or annulled, unless, by virtue of a subsequent marriage, the person
21is married to the decedent at the time of death.

22(b) A person who obtains or consents to a final decree or
23judgment of dissolution of marriage from the decedent or a final
24decree or judgment of annulment of their marriage, which decree
25or judgment is not recognized as valid in this state, unless they (1)
26subsequently participate in a marriage ceremony purporting to
27marry each to the other or (2) subsequently live together asbegin delete husband
28and wife.end delete
begin insert spouses.end insert

29(c) A person who, following a decree or judgment of dissolution
30or annulment of marriage obtained by the decedent, participates
31in a marriage ceremony with a third person.

32(d) A person who was a party to a valid proceeding concluded
33by an order purporting to terminate all marital property rights.

34

SEC. 59.  

Section 100 of the Probate Code is amended to read:

35

100.  

(a) Upon the death of a married person, one-half of the
36community property belongs to the surviving spouse and the other
37half belongs to the decedent.

38(b) Notwithstanding subdivision (a),begin delete a husband and wifeend deletebegin insert spousesend insert
39 may agree in writing to divide their community property on the
40basis of a non pro rata division of the aggregate value of the
P81   1community property or on the basis of a division of each individual
2item or asset of community property, or partly on each basis.
3Nothing in this subdivision shall be construed to require this written
4agreement in order to permit or recognize a non pro rata division
5of community property.

6

SEC. 60.  

Section 101 of the Probate Code is amended to read:

7

101.  

(a) Upon the death of a married person domiciled in this
8state, one-half of the decedent’s quasi-community property belongs
9to the surviving spouse and the other half belongs to the decedent.

10(b) Notwithstanding subdivision (a),begin delete a husband and wifeend deletebegin insert spousesend insert
11 may agree in writing to divide their quasi-community property on
12the basis of a non pro rata division of the aggregate value of the
13quasi-community property, or on the basis of a division of each
14individual item or asset of quasi-community property, or partly on
15each basis. Nothing in this subdivision shall be construed to require
16this written agreement in order to permit or recognize a non pro
17rata division of quasi-community property.

18

SEC. 61.  

Section 103 of the Probate Code is amended to read:

19

103.  

Except as provided by Section 224, ifbegin delete a husband and wifeend delete
20begin insert spousesend insert die leaving community or quasi-community property and
21it cannot be established by clear and convincing evidence that one
22spouse survived the other:

23(a) One-half of the community property and one-half of the
24quasi-community property shall be administered or distributed, or
25otherwise dealt with, as if one spouse had survived and as if that
26half belonged to that spouse.

27(b) The other half of the community property and the other half
28of the quasi-community property shall be administered or
29distributed, or otherwise dealt with, as if the other spouse had
30survived and as if that half belonged to that spouse.

31

SEC. 62.  

Section 2407 of the Probate Code is amended to read:

32

2407.  

This chapter applies to property owned bybegin delete husband and
33wifeend delete
begin insert spousesend insert as community property only to the extent authorized
34by Part 6 (commencing with Section 3000).

35

SEC. 63.  

Section 5040 of the Probate Code is amended to read:

36

5040.  

(a) Except as provided in subdivision (b), a nonprobate
37transfer to the transferor’s former spouse, in an instrument executed
38by the transferor before or during the marriage, fails if, at the time
39of the transferor’s death, the former spouse is not the transferor’s
40surviving spouse as defined in Section 78, as a result of the
P82   1dissolution or annulment of the marriage. A judgment of legal
2separation that does not terminate the status ofbegin delete husband and wifeend delete
3begin insert spousesend insert is not a dissolution for purposes of this section.

4(b) Subdivision (a) does not cause a nonprobate transfer to fail
5in any of the following cases:

6(1) The nonprobate transfer is not subject to revocation by the
7transferor at the time of the transferor’s death.

8(2) There is clear and convincing evidence that the transferor
9intended to preserve the nonprobate transfer to the former spouse.

10(3) A court order that the nonprobate transfer be maintained on
11behalf of the former spouse is in effect at the time of the
12transferor’s death.

13(c) Where a nonprobate transfer fails by operation of this section,
14the instrument making the nonprobate transfer shall be treated as
15it would if the former spouse failed to survive the transferor.

16(d) Nothing in this section affects the rights of a subsequent
17purchaser or encumbrancer for value in good faith who relies on
18the apparent failure of a nonprobate transfer under this section or
19who lacks knowledge of the failure of a nonprobate transfer under
20this section.

21(e) As used in this section, “nonprobate transfer” means a
22provision, other than a provision of a life insurance policy, of either
23of the following types:

24(1) A provision of a type described in Section 5000.

25(2) A provision in an instrument that operates on death, other
26than a will, conferring a power of appointment or naming a trustee.

27

SEC. 64.  

Section 5042 of the Probate Code is amended to read:

28

5042.  

(a) Except as provided in subdivision (b), a joint tenancy
29between the decedent and the decedent’s former spouse, created
30before or during the marriage, is severed as to the decedent’s
31interest if, at the time of the decedent’s death, the former spouse
32is not the decedent’s surviving spouse as defined in Section 78, as
33a result of the dissolution or annulment of the marriage. A judgment
34of legal separation that does not terminate the status ofbegin delete husband
35and wifeend delete
begin insert spousesend insert is not a dissolution for purposes of this section.

36(b) Subdivision (a) does not sever a joint tenancy in either of
37the following cases:

38(1) The joint tenancy is not subject to severance by the decedent
39at the time of the decedent’s death.

P83   1(2) There is clear and convincing evidence that the decedent
2intended to preserve the joint tenancy in favor of the former spouse.

3(c) Nothing in this section affects the rights of a subsequent
4purchaser or encumbrancer for value in good faith who relies on
5an apparent severance under this section or who lacks knowledge
6of a severance under this section.

7(d) For purposes of this section, property held in “joint tenancy”
8includes property held as community property with right of
9survivorship, as described in Section 682.1 of the Civil Code.

10

SEC. 65.  

Section 5203 of the Probate Code is amended to read:

11

5203.  

(a) Words in substantially the following form in a
12signature card, passbook, contract, or instrument evidencing an
13account, or words to the same effect, executed before, on, or after
14July 1, 1990, create the following accounts:

15(1) Joint account: “This account or certificate is owned by the
16named parties. Upon the death of any of them, ownership passes
17to the survivor(s).”

18(2) P.O.D. account with single party: “This account or certificate
19is owned by the named party. Upon the death of that party,
20ownership passes to the named pay-on-death payee(s).”

21(3) P.O.D. account with multiple parties: “This account or
22certificate is owned by the named parties. Upon the death of any
23of them, ownership passes to the survivor(s). Upon the death of
24all of them, ownership passes to the named pay-on-death payee(s).”

25(4) Joint account ofbegin delete husband and wifeend deletebegin insert spousesend insert with right of
26survivorship: “This account or certificate is owned by the named
27parties, who arebegin delete husbandend deletebegin insert spouses,end insert andbegin delete wife, andend delete is presumed to
28be their community property. Upon the death of either of them,
29ownership passes to the survivor.”

30(5) Community property account ofbegin delete husband and wife:end deletebegin insert spouses:end insert
31 “This account or certificate is the community property of the named
32parties who arebegin delete husband and wife.end deletebegin insert spouses.end insert The ownership during
33lifetime and after the death of a spouse is determined by the law
34applicable to community property generally and may be affected
35by a will.”

36(6) Tenancy in common account: “This account or certificate
37is owned by the named parties as tenants in common. Upon the
38death of any party, the ownership interest of that party passes to
39the named pay-on-death payee(s) of that party or, if none, to the
40estate of that party.”

P84   1(b) Use of the form language provided in this section is not
2necessary to create an account that is governed by this part. If the
3contract of deposit creates substantially the samebegin delete relationsipend delete
4begin insert relationshipend insert between the parties as an account created using the
5form language provided in this section, this part applies to the
6same extent as if the form language had been used.

7

SEC. 66.  

Section 6122 of the Probate Code is amended to read:

8

6122.  

(a) Unless the will expressly provides otherwise, if after
9executing a will the testator’s marriage is dissolved or annulled,
10the dissolution or annulment revokes all of the following:

11(1) Any disposition or appointment of property made by the
12will to the former spouse.

13(2) Any provision of the will conferring a general or special
14power of appointment on the former spouse.

15(3) Any provision of the will nominating the former spouse as
16executor, trustee, conservator, or guardian.

17(b) If any disposition or other provision of a will is revoked
18solely by this section, it is revived by the testator’s remarriage to
19the former spouse.

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

21(1) Property prevented from passing to a former spouse because
22of the revocation passes as if the former spouse failed to survive
23the testator.

24(2) Other provisions of the will conferring some power or office
25on the former spouse shall be interpreted as if the former spouse
26failed to survive the testator.

27(d) For purposes of this section, dissolution or annulment means
28any dissolution or annulment which would exclude the spouse as
29a surviving spouse within the meaning of Section 78. A decree of
30legal separation which does not terminate the status ofbegin delete husband
31and wifeend delete
begin insert spousesend insert is not a dissolution for purposes of this section.

32(e) Except as provided in Section 6122.1, no change of
33circumstances other than as described in this section revokes a
34will.

35(f) Subdivisions (a) to (d), inclusive, do not apply to any case
36where the final judgment of dissolution or annulment of marriage
37occurs before January 1, 1985. That case is governed by the law
38in effect prior to January 1, 1985.

39

SEC. 67.  

Section 6227 of the Probate Code is amended to read:

P85   1

6227.  

(a) If after executing a California statutory will the
2testator’s marriage is dissolved or annulled, the dissolution or
3annulment revokes any disposition of property made by the will
4to the former spouse and any nomination of the former spouse as
5executor, trustee, guardian, or custodian made by the will. If any
6disposition or nomination is revoked solely by this section, it is
7revived by the testator’s remarriage to the former spouse.

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

9(1) Property prevented from passing to a former spouse because
10of the revocation passes as if the former spouse failed to survive
11the testator.

12(2) Provisions nominating the former spouse as executor, trustee,
13guardian, or custodian shall be interpreted as if the former spouse
14failed to survive the testator.

15(c) For purposes of this section, dissolution or annulment means
16any dissolution or annulment that would exclude the spouse as a
17surviving spouse within the meaning of Section 78. A decree of
18legal separation which does not terminate the status ofbegin delete husband
19and wifeend delete
begin insert spousesend insert is not a dissolution or annulment for purposes
20of this section.

21(d) This section applies to any California statutory will, without
22regard to the time when the will was executed, but this section
23does not apply to any case where the final judgment of dissolution
24or annulment of marriage occurs before January 1, 1985; and, if
25the final judgment of dissolution or annulment of marriage occurs
26before January 1, 1985, the case is governed by the law that applied
27prior to January 1, 1985.

28

SEC. 68.  

Section 6240 of the Probate Code is amended to read:

29

6240.  

The following is the California Statutory Will form:


31QUESTIONS AND ANSWERS ABOUT THIS CALIFORNIA
32STATUTORY WILL


34The following information, in question and answer form, is not
35a part of the California Statutory Will. It is designed to help you
36understand about Wills and to decide if this Will meets your needs.
37This Will is in a simple form. The complete text of each paragraph
38of this Will is printed at the end of the Will.


P86   11. What happens if I die without a Will?  If you die without a
2Will, what you own (your “assets”) in your name alone will be
3divided among your spouse, domestic partner, children, or other
4relatives according to state law. The court will appoint a relative
5to collect and distribute your assets.

62. What can a Will do for me?  In a Will you may designate
7who will receive your assets at your death. You may designate
8someone (called an “executor”) to appear before the court, collect
9your assets, pay your debts and taxes, and distribute your assets
10as you specify. You may nominate someone (called a “guardian”)
11to raise your children who are under age 18. You may designate
12someone (called a “custodian”) to manage assets for your children
13until they reach any age from 18 to 25.

143. Does a Will avoid probate?  No. With or without a Will,
15assets in your name alone usually go through the court probate
16process. The court’s first job is to determine if your Will is valid.

174. What is community property?  Can I give away my share in
18my Will? If you are married and you or your spouse earned money
19during your marriage from work and wages, that money (and the
20assets bought with it) is community property. Your Will can only
21give away your one-half of community property. Your Will cannot
22give away your spouse’s one-half of community property.

235. Does my Will give away all of my assets?  Do all assets go
24through probate? No. Money in a joint tenancy bank account
25automatically belongs to the other named owner without probate.
26If your spouse, domestic partner, or child is on the deed to your
27house as a joint tenant, the house automatically passes to him or
28her. Life insurance and retirement plan benefits may pass directly
29to the named beneficiary. A Will does not necessarily control how
30these types of “nonprobate” assets pass at your death.

316. Are there different kinds of Wills?  Yes. There are
32handwritten Wills, typewritten Wills, attorney-prepared Wills, and
33statutory Wills. All are valid if done precisely as the law requires.
34You should see a lawyer if you do not want to use this Statutory
35Will or if you do not understand this form.

367. Who may use this Will?  This Will is based on California
37law. It is designed only for California residents. You may use this
38form if you are single, married, a member of a domestic
39partnership, or divorced. You must be age 18 or older and of sound
40mind.

P87   18. Are there any reasons why I should NOT use this Statutory
2Will?
  Yes. This is a simple Will. It is not designed to reduce death
3taxes or other taxes. Talk to a lawyer to do tax planning, especially
4if (i) your assets will be worth more than $600,000 or the current
5amount excluded from estate tax under federal law at your death,
6(ii) you own business-related assets, (iii) you want to create a trust
7fund for your children’s education or other purposes, (iv) you own
8assets in some other state, (v) you want to disinherit your spouse,
9domestic partner, or descendants, or (vi) you have valuable interests
10in pension or profit-sharing plans. You should talk to a lawyer
11who knows about estate planning if this Will does not meet your
12needs. This Will treats most adopted children like natural children.
13You should talk to a lawyer if you have stepchildren or foster
14children whom you have not adopted.

159. May I add or cross out any words on this Will?  No. If you
16do, the Will may be invalid or the court may ignore the crossed
17 out or added words. You may only fill in the blanks. You may
18amend this Will by a separate document (called a codicil). Talk to
19a lawyer if you want to do something with your assets which is
20not allowed in this form.

2110. May I change my Will?  Yes. A Will is not effective until
22you die. You may make and sign a new Will. You may change
23your Will at any time, but only by an amendment (called a codicil).
24You can give away or sell your assets before your death. Your
25Will only acts on what you own at death.

2611. Where should I keep my Will?  After you and the witnesses
27sign the Will, keep your Will in your safe deposit box or other safe
28place. You should tell trusted family members where your Will is
29kept.

3012. When should I change my Will?  You should make and sign
31a new Will if you marry, divorce, or terminate your domestic
32partnership after you sign this Will. Divorce, annulment, or
33termination of a domestic partnership automatically cancels all
34property stated to pass to a formerbegin delete husband, wife,end deletebegin insert spouseend insert or
35domestic partner under this Will, and revokes the designation of
36a former spouse or domestic partner as executor, custodian, or
37guardian. You should sign a new Will when you have more
38children, or if your spouse or a child dies, or a domestic partner
39dies or marries. You may want to change your Will if there is a
40large change in the value of your assets. You may also want to
P88   1change your Will if you enter a domestic partnership or your
2domestic partnership has been terminated after you sign this Will.

313. What can I do if I do not understand something in this Will?
4 If there is anything in this Will you do not understand, ask a lawyer
5to explain it to you.

614. What is an executor?  An “executor” is the person you name
7to collect your assets, pay your debts and taxes, and distribute your
8assets as the court directs. It may be a person or it may be a
9qualified bank or trust company.

1015. Should I require a bond?  You may require that an executor
11post a “bond.” A bond is a form of insurance to replace assets that
12may be mismanaged or stolen by the executor. The cost of the
13bond is paid from the estate’s assets.

1416. What is a guardian?  Do I need to designate one? If you
15have children under age 18, you should designate a guardian of
16their “persons” to raise them.

1717. What is a custodian?  Do I need to designate one? A
18“custodian” is a person you may designate to manage assets for
19someone (including a child) who is under the age of 25 and who
20receives assets under your Will. The custodian manages the assets
21and pays as much as the custodian determines is proper for health,
22support, maintenance, and education. The custodian delivers what
23is left to the person when the person reaches the age you choose
24(from 18 to 25). No bond is required of a custodian.

2518. Should I ask people if they are willing to serve before I
26designate them as executor, guardian, or custodian?
  Probably
27yes. Some people and banks and trust companies may not consent
28to serve or may not be qualified to act.

2919. What happens if I make a gift in this Will to someone and
30that person dies before I do?
  A person must survive you by 120
31hours to take a gift under this Will. If that person does not, then
32the gift fails and goes with the rest of your assets. If the person
33who does not survive you is a relative of yours or your spouse,
34then certain assets may go to the relative’s descendants.

3520. What is a trust?  There are many kinds of trusts, including
36trusts created by Wills (called “testamentary trusts”) and trusts
37created during your lifetime (called “revocable living trusts”). Both
38kinds of trusts are long-term arrangements in which a manager
39(called a “trustee”) invests and manages assets for someone (called
40a “beneficiary”) on the terms you specify. Trusts are too
P89   1complicated to be used in this Statutory Will. You should see a
2lawyer if you want to create a trust.

321. What is a domestic partner?  You have a domestic partner
4if you have met certain legal requirements and filed a form entitled
5“Declaration of Domestic Partnership” with the Secretary of State.
6Notwithstanding Section 299.6 of the Family Code, if you have
7not filed a Declaration of Domestic Partnership with the Secretary
8of State, you do not meet the required definition and should not
9use the section of the Statutory Will form that refers to domestic
10partners even if you have registered your domestic partnership
11with another governmental entity. If you are unsure if you have a
12domestic partner or if your domestic partnership meets the required
13definition, please contact the Secretary of State’s office.


15INSTRUCTIONS


171. READ THE WILL.  Read the whole Will first. If you do not
18understand something, ask a lawyer to explain it to you.

192. FILL IN THE BLANKS.  Fill in the blanks. Follow the
20instructions in the form carefully. Do not add any words to the
21Will (except for filling in blanks) or cross out any words.

223. DATE AND SIGN THE WILL AND HAVE TWO WITNESSES
23SIGN IT.
  Date and sign the Will and have two witnesses sign it.
24You and the witnesses should read and follow the Notice to
25Witnesses found at the end of this Will.

26*You do not need to have this document notarized. Notarization
27will not fulfill the witness requirement.

P90   1PRINTER PLEASE NOTE: TIP-IN MATERIAL TO BE
2INSERTED

[6 pages]

P96   1

SEC. 69.  

Section 13500 of the Probate Code is amended to
2read:

3

13500.  

Except as provided in this chapter, when abegin delete husband or
4wifeend delete
begin insert spouseend insert dies intestate leaving property that passes to the
5surviving spouse under Section 6401, or dies testate and by his or
6her will devises all or a part of his or her property to the surviving
7spouse, the property passes to the survivor subject to the provisions
8of Chapter 2 (commencing with Section 13540) and Chapter 3
9(commencing with Section 13550), and no administration is
10necessary.

11

SEC. 70.  

Section 13600 of the Probate Code is amended to
12read:

13

13600.  

(a) At any time after abegin delete husband or wifeend deletebegin insert spouseend insert dies,
14the surviving spouse or the guardian or conservator of the estate
15of the surviving spouse may, without procuring letters of
16administration or awaiting probate of the will, collect salary or
17other compensation owed by an employer for personal services of
18the deceased spouse, including compensation for unused vacation,
19not in excess of fifteen thousand dollars ($15,000) net.

20(b) Not more than fifteen thousand dollars ($15,000) net in the
21aggregate may be collected by or for the surviving spouse under
22this chapter from all of the employers of the decedent.

23(c) For the purposes of this chapter, a guardian or conservator
24of the estate of the surviving spouse may act on behalf of the
25surviving spouse without authorization or approval of the court in
26which the guardianship or conservatorship proceeding is pending.

27(d) The fifteen-thousand-dollar ($15,000) net limitation set forth
28in subdivisions (a) and (b) does not apply to the surviving spouse
29or the guardian or conservator of the estate of the surviving spouse
30of a firefighter or peace officer described in subdivision (a) of
31Section 22820 of the Government Code.

32(e) On January 1, 2003, and on January 1 of each year thereafter,
33the maximum net amount of salary or compensation payable under
34subdivisions (a) and (b) to the surviving spouse or the guardian or
35conservator of the estate of the surviving spouse may be adjusted
36to reflect any increase in the cost of living occurring after January
371 of the immediately preceding year. The United States city average
38of the “Consumer Price Index for All Urban Consumers,” as
39 published by the United States Bureau of Labor Statistics, shall
40be used as the basis for determining the changes in the cost of
P97   1living. The cost-of-living increase shall equal or exceed 1 percent
2before any adjustment is made. The net amount payable may not
3be decreased as a result of the cost-of-living adjustment.

4

SEC. 71.  

Section 17021 of the Revenue and Taxation Code is
5amended to read:

6

17021.  

As used in this part, if thebegin delete husband and wifeend deletebegin insert spousesend insert
7 therein referred to are divorced, wherever appropriate to the
8meaning of this part, the termbegin delete “wife”end deletebegin insert “spouse”end insert shall be read
9“formerbegin delete wife” and the term “husband” shall be read “former
10husband.” If the payments described in this part are made by or
11on behalf of the wife or former wife to the husband or former
12husband instead of vice versa, wherever appropriate to the meaning
13of this part, the term “husband” shall be read “wife” and the term
14“wife” shall be read “husband.”end delete
begin insert spouse.”end insert

15

SEC. 72.  

Section 17039 of the Revenue and Taxation Code is
16amended to read:

17

17039.  

(a) Notwithstanding any provision in this part to the
18contrary, for the purposes of computing tax credits, the term “net
19tax” means the tax imposed under either Section 17041 or 17048
20plus the tax imposed under Section 17504 (relating to lump-sum
21distributions) less the credits allowed by Section 17054 (relating
22to personal exemption credits) and any amount imposed under
23paragraph (1) of subdivision (d) and paragraph (1) of subdivision
24(e) of Section 17560. Notwithstanding the preceding sentence, the
25“net tax” shall not be less than the tax imposed under Section
2617504 (relating to the separate tax on lump-sum distributions), if
27any. Credits shall be allowed against “net tax” in the following
28order:

29(1) Credits that do not contain carryover or refundable
30provisions, except those described in paragraphs (4) and (5).

31(2) Credits that contain carryover provisions but do not contain
32refundable provisions, except for those that are allowed to reduce
33“net tax” below the tentative minimum tax, as defined by Section
3417062.

35(3) Credits that contain both carryover and refundable
36provisions.

37(4) The minimum tax credit allowed by Section 17063 (relating
38to the alternative minimum tax).

39(5) Credits that are allowed to reduce “net tax” below the
40tentative minimum tax, as defined by Section 17062.

P98   1(6) Credits for taxes paid to other states allowed by Chapter 12
2(commencing with Section 18001).

3(7) Credits that contain refundable provisions but do not contain
4carryover provisions.

5The order within each paragraph shall be determined by the
6Franchise Tax Board.

7(b) Notwithstanding the provisions of Sections 17061 (relating
8to refunds pursuant to the Unemployment Insurance Code) and
919002 (relating to tax withholding), the credits provided in those
10sections shall be allowed in the order provided in paragraph (6) of
11subdivision (a).

12(c) (1) Notwithstanding any other provision of this part, no tax
13credit shall reduce the tax imposed under Section 17041 or 17048
14plus the tax imposed under Section 17504 (relating to the separate
15tax on lump-sum distributions) below the tentative minimum tax,
16as defined by Section 17062, except the following credits:

17(A) The credit allowed by Section 17052.2 (relating to teacher
18retention tax credit).

19(B) The credit allowed by former Section 17052.4 (relating to
20solar energy).

21(C) The credit allowed by former Section 17052.5 (relating to
22solar energy, repealed on January 1, 1987).

23(D) The credit allowed by former Section 17052.5 (relating to
24solar energy, repealed on December 1, 1994).

25(E) The credit allowed by Section 17052.12 (relating to research
26expenses).

27(F) The credit allowed by former Section 17052.13 (relating to
28sales and use tax credit).

29(G) The credit allowed by former Section 17052.15 (relating to
30Los Angeles Revitalization Zone sales tax credit).

31(H) The credit allowed by Section 17052.25 (relating to the
32adoption costs credit).

33(I) The credit allowed by Section 17053.5 (relating to the
34renter’s credit).

35(J) The credit allowed by former Section 17053.8 (relating to
36enterprise zone hiring credit).

37(K) The credit allowed by former Section 17053.10 (relating to
38Los Angeles Revitalization Zone hiring credit).

39(L) The credit allowed by former Section 17053.11 (relating to
40program area hiring credit).

P99   1(M) For each taxable year beginning on or after January 1, 1994,
2the credit allowed by former Section 17053.17 (relating to Los
3Angeles Revitalization Zone hiring credit).

4(N) The credit allowed by Section 17053.33 (relating to targeted
5tax area sales or use tax credit).

6(O) The credit allowed by Section 17053.34 (relating to targeted
7tax area hiring credit).

8(P) The credit allowed by Section 17053.49 (relating to qualified
9property).

10(Q) The credit allowed by Section 17053.70 (relating to
11enterprise zone sales or use tax credit).

12(R) The credit allowed by Section 17053.74 (relating to
13enterprise zone hiring credit).

14(S) The credit allowed by Section 17054 (relating to credits for
15personal exemption).

16(T) The credit allowed by Section 17054.5 (relating to the credits
17for a qualified joint custody head of household and a qualified
18taxpayer with a dependent parent).

19(U) The credit allowed by Section 17054.7 (relating to the credit
20for a senior head of household).

21(V) The credit allowed by former Section 17057 (relating to
22clinical testing expenses).

23(W) The credit allowed by Section 17058 (relating to
24low-income housing).

25(X) For taxable years beginning on or after January 1, 2014, the
26credit allowed by Section 17059.2 (relating to GO-Biz California
27Competes Credit).

28(Y) The credit allowed by Section 17061 (relating to refunds
29pursuant to the Unemployment Insurance Code).

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

32(AA) The credit allowed by Section 19002 (relating to tax
33withholding).

34(AB) For taxable years beginning on or after January 1, 2014,
35the credit allowed by Section 17053.86 (relating to the College
36Access Tax Credit Fund).

37(AC) For taxable years beginning on or after January 1, 2017,
38the credit allowed by Section 17053.87 (relating to the College
39Access Tax Credit Fund).

P100  1(2) Any credit that is partially or totally denied under paragraph
2(1) shall be allowed to be carried over and applied to the net tax
3in succeeding taxable years, if the provisions relating to that credit
4include a provision to allow a carryover when that credit exceeds
5the net tax.

6(d) Unless otherwise provided, any remaining carryover of a
7credit allowed by a section that has been repealed or made
8inoperative shall continue to be allowed to be carried over under
9the provisions of that section as it read immediately prior to being
10repealed or becoming inoperative.

11(e) (1) Unless otherwise provided, if two or more taxpayers
12(other thanbegin delete husband and wife)end deletebegin insert spouses)end insert share in costs that would
13be eligible for a tax credit allowed under this part, each taxpayer
14shall be eligible to receive the tax credit in proportion to his or her
15respective share of the costs paid or incurred.

16(2) In the case of a partnership, the credit shall be allocated
17among the partners pursuant to a written partnership agreement in
18accordance with Section 704 of the Internal Revenue Code, relating
19to partner’s distributive share.

20(3) In the case ofbegin delete a husband and wifeend deletebegin insert spousesend insert who file separate
21returns, the credit may be taken by either or equally divided
22between them.

23(f) Unless otherwise provided, in the case of a partnership, any
24credit allowed by this part shall be computed at the partnership
25level, and any limitation on the expenses qualifying for the credit
26or limitation upon the amount of the credit shall be applied to the
27partnership and to each partner.

28(g) (1) With respect to any taxpayer that directly or indirectly
29owns an interest in a business entity that is disregarded for tax
30purposes pursuant to Section 23038 and any regulations thereunder,
31the amount of any credit or credit carryforward allowable for any
32taxable year attributable to the disregarded business entity shall
33be limited in accordance with paragraphs (2) and (3).

34(2) The amount of any credit otherwise allowed under this part,
35including any credit carryover from prior years, that may be applied
36to reduce the taxpayer’s “net tax,” as defined in subdivision (a),
37for the taxable year shall be limited to an amount equal to the
38excess of the taxpayer’s regular tax (as defined in Section 17062),
39determined by including income attributable to the disregarded
40business entity that generated the credit or credit carryover, over
P101  1the taxpayer’s regular tax (as defined in Section 17062), determined
2by excluding the income attributable to that disregarded business
3entity. No credit shall be allowed if the taxpayer’s regular tax (as
4defined in Section 17062), determined by including the income
5attributable to the disregarded business entity, is less than the
6taxpayer’s regular tax (as defined in Section 17062), determined
7by excluding the income attributable to the disregarded business
8entity.

9(3) If the amount of a credit allowed pursuant to the section
10establishing the credit exceeds the amount allowable under this
11subdivision in any taxable year, the excess amount may be carried
12over to subsequent taxable years pursuant to subdivisions (c) and
13(d).

14(h) (1) Unless otherwise specifically provided, in the case of a
15taxpayer that is a partner or shareholder of an eligible pass-thru
16entity described in paragraph (2), any credit passed through to the
17taxpayer in the taxpayer’s first taxable year beginning on or after
18the date the credit is no longer operative may be claimed by the
19taxpayer in that taxable year, notwithstanding the repeal of the
20statute authorizing the credit prior to the close of that taxable year.

21(2) For purposes of this subdivision, “eligible pass-thru entity”
22means any partnership or “S” corporation that files its return on a
23fiscal year basis pursuant to Section 18566, and that is entitled to
24a credit pursuant to this part for the taxable year that begins during
25the last year the credit is operative.

26(3) This subdivision shall apply to credits that become
27inoperative on or after the operative date of the act adding this
28subdivision.

29

SEC. 73.  

Section 17045 of the Revenue and Taxation Code is
30amended to read:

31

17045.  

In the case of a joint return of abegin delete husband and wifeend delete
32begin insert married coupleend insert under Section 18521, the tax imposed by Section
3317041 shall be twice the tax which would be imposed if the taxable
34income were cut in half.

35For purposes of this section, a return of a surviving spouse (as
36defined in Section 17046) shall be treated as a joint return of a
37begin delete husband and wife.end deletebegin insert married couple.end insert

38

SEC. 74.  

Section 17053.5 of the Revenue and Taxation Code
39 is amended to read:

P102  1

17053.5.  

(a) (1) For a qualified renter, there shall be allowed
2a credit against his or her “net tax,” as defined in Section 17039.
3The amount of the credit shall be as follows:

4(A) For married couples filing joint returns, heads of household,
5and surviving spouses, as defined in Section 17046, the credit shall
6be equal to one hundred twenty dollars ($120) if adjusted gross
7income is fifty thousand dollars ($50,000) or less.

8(B) For other individuals, the credit shall be equal to sixty dollars
9($60) if adjusted gross income is twenty-five thousand dollars
10($25,000) or less.

11(2) Except as provided in subdivision (b), abegin delete husband and wifeend delete
12begin insert married coupleend insert shall receive but one credit under this section. If
13thebegin delete husband and wifeend deletebegin insert spousesend insert file separate returns, the credit may
14be taken by either or equally divided between them, except as
15follows:

16(A) If one spouse was a resident for the entire taxable year and
17the other spouse was a nonresident for part or all of the taxable
18year, the resident spouse shall be allowed one-half the credit
19allowed to married persons and the nonresident spouse shall be
20permitted one-half the credit allowed to married persons, prorated
21as provided in subdivision (e).

22(B) If both spouses were nonresidents for part of the taxable
23year, the credit allowed to married persons shall be divided equally
24between them subject to the proration provided in subdivision (e).

25(b) For abegin delete husband and wife,end deletebegin insert married couple,end insert if each spouse
26maintained a separate place of residence and resided in this state
27during the entire taxable year, each spouse will be allowed one-half
28the full credit allowed to married persons provided in subdivision
29(a).

30(c) For purposes of this section, a “qualified renter” means an
31individual who satisfies both of the following:

32(1) Was a resident of this state, as defined in Section 17014.

33(2) Rented and occupied premises in this state which constituted
34his or her principal place of residence during at least 50 percent
35of the taxable year.

36(d) “Qualified renter” does not include any of the following:

37(1) An individual who for more than 50 percent of the taxable
38year rented and occupied premises that were exempt from property
39taxes, except that an individual, otherwise qualified, is deemed a
40qualified renter if he or she or his or her landlord pays possessory
P103  1interest taxes, or the owner of those premises makes payments in
2lieu of property taxes that are substantially equivalent to property
3taxes paid on properties of comparable market value.

4(2) An individual whose principal place of residence for more
5than 50 percent of the taxable year is with another person who
6claimed that individual as a dependent for income tax purposes.

7(3) An individual who has been granted or whose spouse has
8been granted the homeowners’ property tax exemption during the
9taxable year. This paragraph does not apply to an individual whose
10spouse has been granted the homeowners’ property tax exemption
11if each spouse maintained a separate residence for the entire taxable
12year.

13(e) An otherwise qualified renter who is a nonresident for any
14portion of the taxable year shall claim the credits set forth in
15subdivision (a) at the rate of one-twelfth of those credits for each
16full month that individual resided within this state during the
17taxable year.

18(f) A person claiming the credit provided in this section shall,
19as part of that claim, and under penalty of perjury, furnish that
20information as the Franchise Tax Board prescribes on a form
21supplied by the board.

22(g) The credit provided in this section shall be claimed on returns
23in the form as the Franchise Tax Board may from time to time
24prescribe.

25(h) For purposes of this section, “premises” means a house or
26a dwelling unit used to provide living accommodations in a
27building or structure and the land incidental thereto, but does not
28include land only, unless the dwelling unit is a mobilehome. The
29credit is not allowed for any taxable year for the rental of land
30upon which a mobilehome is located if the mobilehome has been
31granted a homeowners’ exemption under Section 218 in that year.

32(i) This section shall become operative on January 1, 1998, and
33applies to any taxable year beginning on or after January 1, 1998.

34(j) For each taxable year beginning on or after January 1, 1999,
35the Franchise Tax Board shall recompute the adjusted gross income
36amounts set forth in subdivision (a). The computation shall be
37made as follows:

38(1) The Department of Industrial Relations shall transmit
39annually to the Franchise Tax Board the percentage change in the
40California Consumer Price Index for all items from June of the
P104  1prior calendar year to June of the current year, no later than August
21 of the current calendar year.

3(2) The Franchise Tax Board shall compute an inflation
4adjustment factor by adding 100 percent to the portion of the
5percentage change figure which is furnished pursuant to paragraph
6(1) and dividing the result by 100.

7(3) The Franchise Tax Board shall multiply the amount in
8subparagraph (B) of paragraph (1) of subdivision (d) for the
9preceding taxable year by the inflation adjustment factor
10determined in paragraph (2), and round off the resulting products
11to the nearest one dollar ($1).

12(4) In computing the amounts pursuant to this subdivision, the
13amounts provided in subparagraph (A) of paragraph (1) of
14subdivision (a) shall be twice the amount provided in subparagraph
15(B) of paragraph (1) of subdivision (a).

16

SEC. 75.  

Section 17054 of the Revenue and Taxation Code is
17amended to read:

18

17054.  

In the case of individuals, the following credits for
19personal exemption may be deducted from the tax imposed under
20Section 17041 or 17048, less any increases imposed under
21paragraph (1) of subdivision (d) or paragraph (1) of subdivision
22(e), or both, of Section 17560.

23(a) In the case of a single individual, a head of household, or a
24married individual making a separate return, a credit of fifty-two
25dollars ($52).

26(b) In the case of a surviving spouse (as defined in Section
2717046), or abegin delete husband and wifeend deletebegin insert married coupleend insert making a joint
28return, a credit of one hundred four dollars ($104). If one spouse
29was a resident for the entire taxable year and the other spouse was
30a nonresident for all or any portion of the taxable year, the personal
31exemption shall be divided equally.

32(c) In addition to any other credit provided in this section, in
33the case of an individual who is 65 years of age or over by the end
34of the taxable year, a credit of fifty-two dollars ($52).

35(d) (1) A credit of two hundred twenty-seven dollars ($227)
36for each dependent (as defined in Section 17056) for whom an
37exemption is allowable under Section 151(c) of the Internal
38Revenue Code, relating to additional exemption for dependents.
39The credit allowed under this subdivision for taxable years
40beginning on or after January 1, 1999, shall not be adjusted
P105  1pursuant to subdivision (i) for any taxable year beginning before
2January 1, 2000.

3(2) (A) For taxable years beginning on or after January 1, 2015,
4a credit shall not be allowed under paragraph (1) with respect to
5any individual unless the identification number, as defined in
6Section 6109 of the Internal Revenue Code, of that individual is
7included on the return claiming the credit.

8(B) A disallowance of a credit due to the omission of a correct
9identification number required under this paragraph, may be
10assessed by the Franchise Tax Board in the same manner as is
11provided by Section 19051 in the case of a mathematical error
12appearing on the return. A claimant shall have the right to claim
13a credit or refund of adjusted amounts within the period provided
14in Section 19306, 19307, 19308, or 19311, whichever period
15expires later.

16(3) (A) For taxable years beginning on or after January 1, 2009,
17the credit allowed under paragraph (1) for each dependent shall
18be equal to the credit allowed under subdivision (a). This
19subparagraph shall cease to be operative for taxable years beginning
20on or after January 1, 2011, unless the Director of Finance makes
21the notification pursuant to Section 99040 of the Government
22Code, in which case this subparagraph shall cease to be operative
23for taxable years beginning on or after January 1, 2013.

24(B) For taxable years that subparagraph (A) ceases to be
25operative, the credit allowed under paragraph (1) for each
26dependent shall be equal to the amount that would be allowed if
27subparagraph (A) had never been operative.

28(e) A credit for personal exemption of fifty-two dollars ($52)
29for the taxpayer if he or she is blind at the end of his or her taxable
30year.

31(f) A credit for personal exemption of fifty-two dollars ($52)
32for the spouse of the taxpayer if a separate return is made by the
33taxpayer, and if the spouse is blind and, for the calendar year in
34which the taxable year of the taxpayer begins, has no gross income
35and is not the dependent of another taxpayer.

36(g) For the purposes of this section, an individual is blind only
37if either (1) his or her central visual acuity does not exceed 20/200
38in the better eye with correcting lenses, or (2) his or her visual
39acuity is greater than 20/200 but is accompanied by a limitation
P106  1in the fields of vision such that the widest diameter of the visual
2field subtends an angle no greater than 20 degrees.

3(h) In the case of an individual with respect to whom a credit
4under this section is allowable to another taxpayer for a taxable
5year beginning in the calendar year in which the individual’s
6taxable year begins, the credit amount applicable to that individual
7for that individual’s taxable year is zero.

8(i) For each taxable year beginning on or after January 1, 1989,
9the Franchise Tax Board shall compute the credits prescribed in
10this section. That computation shall be made as follows:

11(1) The California Department of Industrial Relations shall
12transmit annually to the Franchise Tax Board the percentage change
13in the California Consumer Price Index for all items from June of
14the prior calendar year to June of the current calendar year, no
15later than August 1 of the current calendar year.

16(2) The Franchise Tax Board shall add 100 percent to the
17percentage change figure which is furnished to them pursuant to
18paragraph (1), and divide the result by 100.

19(3) The Franchise Tax Board shall multiply the immediately
20preceding taxable year credits by the inflation adjustment factor
21determined in paragraph (2), and round off the resulting products
22to the nearest one dollar ($1).

23(4) In computing the credits pursuant to this subdivision, the
24credit provided in subdivision (b) shall be twice the credit provided
25in subdivision (a).

26

SEC. 76.  

Section 17077 of the Revenue and Taxation Code is
27amended to read:

28

17077.  

Section 68 of the Internal Revenue Code, relating to
29overall limitation on itemized deductions, shall apply, except as
30otherwise provided.

31(a) “Six percent” shall be substituted for “3 percent” in Section
3268(a)(1) of the Internal Revenue Code.

33(b) Section 68(b)(1) of the Internal Revenue Code shall not
34apply and in lieu thereof the term “applicable amount” in each
35place it appears in Section 68(a) of the Internal Revenue Code
36means one hundred thousand dollars ($100,000) in the case of a
37single individual or a married individual filing a separate return,
38one hundred fifty thousand dollars ($150,000) in the case of a head
39of household, and two hundred thousand dollars ($200,000) in the
P107  1case of a surviving spouse or abegin delete husband and wifeend deletebegin insert married coupleend insert
2 filing a joint return.

3(c) Section 68(b)(2) of the Internal Revenue Code, relating to
4inflation adjustments, shall not apply. However, for any taxable
5year beginning on or after January 1, 1992, the applicable amounts
6specified in subdivision (b) shall be recomputed annually in the
7same manner as the recomputation of income tax brackets under
8subdivision (h) of Section 17041.

9(d) Section 68(f) of the Internal Revenue Code, relating to
10phaseout of limitation, shall not apply.

11(e) Section 68(g) of the Internal Revenue Code, relating to
12termination, shall not apply.

13

SEC. 77.  

Section 17555 of the Revenue and Taxation Code is
14amended to read:

15

17555.  

In any case wherebegin delete husband and wifeend deletebegin insert spousesend insert file
16separate returns, the Franchise Tax Board may distribute,begin delete apportionend delete
17begin insert apportion,end insert or allocate gross income between the spouses, if it is
18determined that such distribution,begin delete apportionmentend deletebegin insert apportionment,end insert
19 or allocation is necessary in order to reflect the proper income of
20the spouses.

21

SEC. 78.  

Section 18501 of the Revenue and Taxation Code is
22amended to read:

23

18501.  

(a) Every individual taxable under Part 10
24(commencing with Section 17001) shall make a return to the
25Franchise Tax Board, stating specifically the items of the
26individual’s gross income from all sources and the deductions and
27credits allowable, if the individual has any of the following for the
28taxable year:

29(1) An adjusted gross income from all sources in excess of eight
30thousand dollars ($8,000), if single.

31(2) An adjusted gross income from all sources in excess of
32sixteen thousand dollars ($16,000), if married.

33(3) A gross income from all sources in excess of ten thousand
34dollars ($10,000), if single, and twenty thousand dollars ($20,000),
35if married, regardless of the amount of adjusted gross income.

36(4) In the case of an individual described in Section 63(c)(5) of
37the Internal Revenue Code, relating to limitation on basic standard
38deduction in the case of certain dependents, a gross income from
39all sources that exceeds the amount of the standard deduction
40allowed under that section.

P108  1(b) If abegin delete husband and wife haveend deletebegin insert married couple hasend insert for the
2taxable year an adjusted gross income from all sources in excess
3of sixteen thousand dollars ($16,000) or a gross income from all
4sources in excess of twenty thousand dollars ($20,000), eachbegin insert spouseend insert
5 shall make a return or the income of each shall be included on a
6single joint return as otherwise provided in this article.

7(c) For any individual described in paragraph (1) or (2), the
8Franchise Tax Board shall recompute the amounts provided in
9subdivision (b) and paragraphs (1) to (3), inclusive, of subdivision
10(a) as follows:

11(1) For any individual eligible to claim the credit described in
12subdivision (c) of Section 17054, the Franchise Tax Board shall
13increase the income amounts described in subdivision (b) and
14paragraphs (1) to (3), inclusive, of subdivision (a), as adjusted by
15subdivision (d), by the quotient provided by dividing the credit
16described in subdivision (c) of Section 17054, as adjusted in
17subdivision (i) of Section 17054, by 2 percent.

18(2) For any individual or married couple eligible to claim the
19credit described in subdivision (d) of Section 17054, the Franchise
20Tax Board shall increase the income amounts described in
21subdivision (b) or paragraphs (1) to (3), inclusive, of subdivision
22(a), as adjusted by subdivision (d), by the quotient provided by
23dividing each credit described in subdivision (d) of Section 17054,
24as adjusted in subdivision (i) of Section 17054, by the following:

25(A) If the individual or married couple is not eligible to claim
26the credit allowed in subdivision (c) of Section 17054, 3 percent
27for the first dependent credit and 4 percent for the second dependent
28credit, if any.

29(B) If the individual or married couple is eligible to claim the
30credit allowed in subdivision (c) of Section 17054, 4 percent for
31the first dependent credit and 5 percent for the second dependent
32credit, if any.

33(d) For each taxable year beginning on or after January 1, 1996,
34the Franchise Tax Board shall recompute the income amounts
35prescribed in paragraphs (1) to (3), inclusive, of subdivision (a)
36and in subdivision (b), as follows:

37(1) The Department of Industrial Relations shall transmit
38annually to the Franchise Tax Board the percentage change in the
39California Consumer Price Index for all items from June of the
P109  1prior calendar year to June of the current calendar year, no later
2than August 1 of the current calendar year.

3(2) The Franchise Tax Board shall do both of the following:

4(A) Compute an inflation adjustment factor by adding 100
5percent to the percentage change figure that is furnished pursuant
6to paragraph (1) and dividing the result by 100.

7(B) Multiply the income amounts for the preceding taxable year
8by the inflation adjustment factor determined in subparagraph (A)
9and round off the resulting products to the nearest one dollar ($1).

10(e) The changes to subdivision (c) made by the act adding this
11subdivision shall apply to each taxable year beginning on or after
12January 1, 1999.

13

SEC. 79.  

Section 18522 of the Revenue and Taxation Code is
14amended to read:

15

18522.  

If an individual has filed a separate return for a taxable
16year for which a joint return could have been made by him or her
17and his or her spouse under Section 18521, and the time prescribed
18for filing the return for that taxable year has expired, that individual
19and his or her spouse may nevertheless make a joint return for that
20taxable year, provided a joint federal income tax return is made
21under the provisions of Section 6013(b) of the Internal Revenue
22Code. A joint return filed by thebegin delete husband and wifeend deletebegin insert married coupleend insert
23 in that case shall constitute the return of thebegin delete husband and wifeend delete
24begin insert married coupleend insert for that taxable year, and all payments, credits,
25refunds, or other repayments made or allowed with respect to the
26separate return of either spouse for that taxable year shall be taken
27into account in determining the extent to which the tax based upon
28the joint return has been paid.

29

SEC. 80.  

Section 18530 of the Revenue and Taxation Code is
30amended to read:

31

18530.  

Where the amount shown as the tax by thebegin delete husband
32and wifeend delete
begin insert married coupleend insert on a joint return made under Section
3318522 exceeds the aggregate of the amounts shown as the tax upon
34the separate return of each spouse, each of the following shall
35apply:

36(a) If any part of the excess is attributable to negligence or
37intentional disregard of rules and regulations (but without intent
38to defraud) at the time of the making of the separate return, then
3920 percent of the total amount of the excess shall be assessed,
P110  1begin delete collectedend deletebegin insert collected,end insert and paid, in lieu of the 20 percent addition to
2the tax provided in subdivision (a) of Section 19164.

3(b) If any part of the excess is attributable to fraud with intent
4to evade tax at the time of the making of the separate return, then
575 percent of the total amount of the excess shall be assessed,
6begin delete collectedend deletebegin insert collected,end insert and paid, in lieu of the 75 percent addition to
7the tax provided in subdivision (b) of Section 19164.

8

SEC. 81.  

Section 18531.5 of the Revenue and Taxation Code
9 is amended to read:

10

18531.5.  

For purposes of Section 443 of the Internal Revenue
11Code, where thebegin delete husband and wifeend deletebegin insert spousesend insert have different taxable
12years because of the death of either spouse, the joint return shall
13be treated as if the taxable years of both spouses ended on the date
14of the closing of the surviving spouse’s taxable year.

15

SEC. 82.  

Section 18532 of the Revenue and Taxation Code is
16amended to read:

17

18532.  

For the purposes of this article, each of the following
18shall apply:

19(a) The status asbegin delete husband and wifeend deletebegin insert marriedend insert of two individuals
20having taxable years beginning on the same day shall be determined
21as follows:

22(1) If both have the same taxable year, then as of the close of
23that year.

24(2) If one dies before the close of the taxable year of the other,
25then as of the time of the death.

26(b) An individual who is legally separated from his or her spouse
27under a decree of divorce or of separate maintenance shall not be
28considered as married.

29(c) If a joint return is made, the tax shall be computed on the
30aggregate income and the liability with respect to the tax shall be
31joint and several.

32

SEC. 83.  

Section 19006 of the Revenue and Taxation Code is
33amended to read:

34

19006.  

(a) The spouse who controls the disposition of or who
35receives or spends community income as well as the spouse who
36is taxable on the income is liable for the payment of the taxes
37imposed by Part 10 (commencing with Section 17001) on that
38income.

39(b) Whenever a joint return is filed by abegin delete husband and wife,end delete
40begin insert married couple,end insert the liability for the tax on the aggregate income
P111  1is joint and several. The liability may be revised by a court in a
2proceeding for dissolution of the marriage of thebegin delete husband and wife,end delete
3begin insert married couple,end insert provided:

4(1) The order revising tax liability may not relieve a spouse of
5tax liability on income earned by or subject to the exclusive
6management and control of the spouse. The liability of the spouse
7for the tax, penalties, and interest due for the taxable year shall be
8in the same ratio to total tax, penalties, and interest due for the
9taxable year as the income earned by or subject to the management
10and control of the spouse is to total gross income reportable on the
11return.

12(2) The order revising tax liability:

13(A) Must separately state the income tax liabilities for the
14taxable years for which revision of tax liability is granted.

15(B) Shall not revise a tax liability that has been fully paid prior
16to the effective date of the order; however, any unpaid amount
17may be revised.

18(C) Shall become effective when the Franchise Tax Board is
19served with or acknowledges receipt of the order.

20(D) Shall not be effective if the gross income reportable on the
21return exceeds one hundred fifty thousand dollars ($150,000) or
22the amount of tax liability the spouse is relieved of exceeds seven
23thousand five hundred dollars ($7,500), unless a tax revision
24clearance certificate is obtained from the Franchise Tax Board and
25filed with the court.

26(c) Notwithstanding subdivisions (a) and (b), whenever a joint
27return is filed by abegin delete husbandend deletebegin insert married coupleend insert andbegin delete wife andend delete the tax
28liability is not fully paid, that liability, including interest and
29penalties, may be revised by the Franchise Tax Board as to one
30spouse.

31(1) However, the liability shall not be revised:

32(A) To relieve a spouse of tax liability on income earned by or
33subject to the exclusive management and control of the spouse.
34The liability of the spouse for the tax, penalties, and interest due
35for the taxable year shall be in the same ratio to total tax, penalties,
36and interest due for the taxable year as the income earned by or
37subject to the management and control of the spouse is to total
38gross income reportable on the return.

P112  1(B) To relieve a spouse of liability below the amount actually
2paid on the liability prior to the granting of relief, including credit
3from any other taxable year available for application to the liability.

4(2) The liability may be revised only if the spouse whose liability
5is to be revised establishes that he or she did not know of, and had
6no reason to know of, the nonpayment at the time the return was
7filed. For purposes of this paragraph, “reason to know” means
8whether or not a reasonably prudent person would have had reason
9to know of the nonpayment.

10(3) For purposes of this section, the determination of the spouse
11to whom items of gross income are attributable shall be made
12without regard to community property laws.

13(4) The determination of the Franchise Tax Board as to whether
14the liability is to be revised as to one spouse shall be made not less
15than 30 days after notification of the other spouse and shall be
16based upon whether, under all of the facts and circumstances
17surrounding the nonpayment, it would be inequitable to hold the
18spouse requesting revision liable for the nonpayment. Any action
19taken under this section shall be treated as though it were action
20on a protest taken under Section 19044 and shall become final
21upon the expiration of 30 days from the date that notice of the
22action is mailed to both spouses, unless, within that 30-day period,
23one or both spouses appeal the determination to the board as
24provided in Section 19045.

25(5) This subdivision shall apply to all taxable years subject to
26the provisions of this part, but shall not apply to any taxable year
27which has been closed by a statute of limitations, res judicata, or
28otherwise.

29

SEC. 84.  

Section 19035 of the Revenue and Taxation Code is
30amended to read:

31

19035.  

In the case of a joint return filed bybegin delete husband and wife,end delete
32begin insert a married couple,end insert the notice of proposed deficiency assessment
33may be a single joint notice, except that if the Franchise Tax Board
34is notified by either spouse that separate residences have been
35established, it shall mail to each spouse, in lieu of the single joint
36notice, duplicate originals of the joint notice.

37

SEC. 85.  

Section 19107 of the Revenue and Taxation Code is
38amended to read:

39

19107.  

Where an overpayment is made by any individual for
40any year, and a deficiency is owing from thebegin delete husband or wifeend delete
P113  1begin insert spouseend insert of the taxpayer for the same year, and bothbegin delete husband and
2wifeend delete
begin insert spousesend insert notify the Franchise Tax Board in writing prior to
3the expiration of the time within which credit for the overpayment
4may be allowed that the overpayment may be credited against the
5deficiency, no interest shall be assessed on that portion of the
6deficiency as is extinguished by the credit for the period of time
7subsequent to the date the overpayment was made.

8

SEC. 86.  

Section 19110 of the Revenue and Taxation Code is
9amended to read:

10

19110.  

(a) When the correction of an erroneous inclusion or
11deduction of an item or items in the computation of income of a
12trust, estate, parent,begin delete husband,end delete orbegin delete wifeend deletebegin insert spouseend insert for any year results
13in an overpayment for that year by the trust, estate, parent,begin delete husband,end delete
14 orbegin delete wife,end deletebegin insert spouse,end insert and also results in a deficiency for the same year
15for a grantor of the trust or beneficiary of the estate or trust, or
16child of the parent, or spouse of the child, or the spouse of the
17begin delete husband or wife,end deletebegin insert spouse,end insert the overpayment, if the period within
18which credit for the overpayment may be allowed has not expired,
19shall be credited on the deficiency, if the period within which the
20deficiency may be proposed has not expired, and the balance, if
21any, shall be credited or refunded. No interest shall be assessed
22on the portion of the deficiency as is extinguished by the credit
23for the period of time subsequent to the date the overpayment was
24made.

25(b) When the correction of an erroneous inclusion or deduction
26of an item or items in the computation of income of a grantor of
27a trust, beneficiary of an estate or trust, a child, or spouse of the
28child, or abegin delete husband or wifeend deletebegin insert spouseend insert for any year results in an
29overpayment for that year by the grantor, beneficiary,begin delete childend deletebegin insert child,end insert
30 orbegin delete husband or wife,end deletebegin insert spouse,end insert and also results in a deficiency for the
31same year for the grantor’s or beneficiary’s trust, the beneficiary’s
32estate, the child’s parent, or spouse of the child, or the beneficiary’s
33spouse, the overpayment, if the period within which credit for the
34overpayment may be allowed has not expired, shall be credited on
35the deficiency, if the period within which the deficiency may be
36proposed has not expired, and the balance, if any, shall be credited
37or refunded. No interest shall be assessed on the portion of the
38deficiency as is extinguished by the credit for the period of time
39subsequent to the date the overpayment was made.

P114  1(c) Subdivisions (a) and (b) are not intended, nor shall they be
2construed as a limitation on the Franchise Tax Board’s right to
3offset or recoup barred assessments against overpayments.

4

SEC. 87.  

Section 19701.5 of the Revenue and Taxation Code
5 is amended to read:

6

19701.5.  

(a) Any person who signs his or her spouse’s name
7on any income tax return, or any schedules or attachments thereto,
8or who files electronically pursuant to Section 18621.5, without
9the consent of the spouse as provided in subdivision (b), is guilty
10of a misdemeanor and shall upon conviction be fined an amount
11not to exceed five thousand dollars ($5,000) or be imprisoned for
12a term not to exceed one year, or both, at the discretion of the court,
13together with costs of investigation and prosecution.

14(b) Notwithstanding subdivision (a), any person who signs his
15or her spouse’s name shall not be guilty of a misdemeanor when
16one spouse is physically unable by reason of disease or injury to
17sign a joint return, and the other spouse, with the oral consent of
18the one who is incapacitated, signs the incapacitated spouse’s name
19in the proper place on the return followed by the words “By ____,
20begin insert Spouse (orend insert Husbandbegin delete (orend deletebegin insert orend insert Wife),” and by the signature of the
21signing spouse in his or her own right, provided that a dated
22statement signed by the spouse who is signing the return is attached
23to and made a part of the return stating each of the following:

24(1) The name of the return being filed.

25(2) The taxable year.

26(3) The reason for the inability of the spouse who is
27incapacitated to sign the return.

28(4) That the spouse who is incapacitated consented to the signing
29of the return and that the taxpayer and his or her agent, if any, are
30responsible for the return as made and incur liability for the
31penalties provided for erroneous, false, or fraudulent returns.

32(c) The penalties provided by this section are cumulative and
33shall not be construed as restricting any other penalty provided by
34law based upon the same facts, including any penalty under Section
35470 of the Penal Code. However, an act or omission which is made
36punishable in different ways by this section and different provisions
37of the Penal Code shall not be punished under more than one
38provision.

39

SEC. 88.  

Section 20542 of the Revenue and Taxation Code is
40amended to read:

P115  1

20542.  

(a) The Franchise Tax Board, pursuant to the provisions
2of Article 3 (commencing with Section 20561), of this chapter,
3shall provide assistance to the claimant based on a percentage of
4the property tax accrued and paid by the claimant on the residential
5dwelling as provided in Section 20543 or the statutory property
6tax equivalent pursuant to Section 20544. In case of an
7owner-claimant, the assistance shall be equal to the applicable
8percentage of property taxes paid on the full value of the residential
9dwelling up to, and including, thirty-four thousand dollars
10($34,000). No assistance shall be allowed for property taxes paid
11on that portion of full value of a residential dwelling exceeding
12thirty-four thousand dollars ($34,000). No assistance shall be
13provided if the amount of the assistance claim is five dollars ($5)
14or less.

15(b) For purposes of allowing assistance provided for by this
16section:

17(1) (A) Only one owner-claimant from one household each
18year shall be entitled to assistance under this chapter. When two
19or more individuals of a household are able to meet the
20qualifications for an owner-claimant, they may determine who the
21owner-claimant shall be. If they are unable to agree, the matter
22shall be referred to the Franchise Tax Board and its decision shall
23be final.

24(B) When two or more individuals pay rent for the same
25premises and each individual meets the qualifications for a
26renter-claimant, each qualified individual shall be entitled to
27assistance under this part.

28For the purposes of this subparagraph,begin delete a husband and wifeend delete
29begin insert spousesend insert residing in the same premises shall be presumed to be one
30renter.

31(2) Except as provided in paragraph (3), the right to file a claim
32shall be personal to the claimant and shall not survive hisbegin insert or herend insert
33 death; however, when a claimant dies after having filed a timely
34claim, the amount thereof may be disbursed to the surviving spouse
35and, if no surviving spouse, to any other member of the household
36who is a qualified claimant. If there is no surviving spouse or
37otherwise qualified claimant, the claim shall be disbursed to any
38other member of the household. In the event two or more
39individuals qualify for payment as either an otherwise qualified
40claimant or a member of the household, they may determine which
P116  1of them will be paid. If they are unable to agree, the matter shall
2be referred to the Franchise Tax Board and its decision shall be
3final.

4(3) If, after January 1 of the property tax fiscal year for which
5a claim may be filed, a claimant dies without filing a timely claim,
6a claim on behalf of such claimant may be filed by the surviving
7spouse within the filing period prescribed in subdivision (a) or (b)
8of Section 20563.

9(4) If an individual postponed taxes for any given property tax
10fiscal year under Chapter 2 (commencing with Section 20581),
11Chapter 3 (commencing with Section 20625), Chapter 3.3
12(commencing with Section 20639), or Chapter 3.5 (commencing
13with Section 20640), then any claim for assistance under this
14chapter for the same property tax fiscal year shall be filed by such
15individual (assuming all other eligibility requirements in this
16chapter are satisfied) and not an otherwise qualified member of
17the individual’s household.

18

SEC. 89.  

Section 2804 of the Streets and Highways Code is
19amended to read:

20

2804.  

(a) This division does not apply to irrigation districts,
21irrigation district improvement districts, fire districts, fire protection
22districts, or public cemetery districts, or to any proceeding
23otherwise subject to this division when one or more of the
24following situations exist:

25(1) The proceedings are undertaken by a district or public
26corporation within one year of its incorporation.

27(2) The improvement proceedings are by a chartered city,
28chartered county, or a county sanitation district which is governed
29ex officio by the board of supervisors of a chartered county, and
30the city, county, or district has complied with Section 19 of Article
31XVI of the California Constitution.

32(3) All of the owners of more than 60 percent in area of the
33property subject to assessment for the proposed improvements
34have signed and filed with the clerk or secretary of the legislative
35body undertaking the proceedings a written petition for the
36improvements meeting the requirements of Section 2804.5.

37(b) As used in this section, “substantially described” means that
38additional improvements of the same or similar nature may not be
39provided unless the estimated cost of the improvements does not
P117  1exceed 10 percent of the estimated cost of the improvements
2provided in the former report.

3(c) As used in this section, “owner of land” means only a person
4who, at the time the petition is filed with the clerk or secretary of
5the legislative body, appears to be the owner upon the assessor’s
6roll or, in the case of transfers of land, or parts thereof, subsequent
7to the date upon which the last assessor’s roll was prepared, appear
8to be the owner on the records in the county assessor’s office which
9the county assessor will use to prepare the next assessor’s roll. If
10any person signing the petition appears on the assessor’s roll or
11the records in the county assessor’s office as an owner of property
12as a joint tenant or tenant in common, or as abegin delete husband or wife,end delete
13begin insert spouse,end insert that property shall be counted as if all those persons had
14signed the petition.

15

SEC. 90.  

Section 13003 of the Unemployment Insurance Code
16 is amended to read:

17

13003.  

(a) Except where the context otherwise requires, the
18definitions set forth in this chapter, and in addition the definitions
19and provisions of the Personal Income Tax Law referred to and
20hereby incorporated by reference as set forth in the following
21provisions of the Revenue and Taxation Code, shall apply to and
22govern the construction of this division:

23(1) “Corporation” as defined by Section 17009.

24(2) “Fiduciary” as defined by Section 17006.

25(3) “Fiscal year” as defined by Section 17011.

26(4) “Foreign country” as defined by Section 17019.

27(5) “Franchise Tax Board” as defined by Section 17003.

28(6) begin delete “Husband” and “wife”end deletebegin insert “Spouse”end insert as defined by Section
2917021.

30(7) “Individual” as defined by Section 17005.

31(8) “Military or naval forces” as defined by Section 17022.

32(9) “Nonresident” as defined by Section 17015.

33(10) “Partnership” as defined by Section 17008.

34(11) “Person” as defined by Section 17007.

35(12) “Resident” as defined by Sections 17014 and 17016.

36(13) “State” as defined by Section 17018.

37(14) “Taxable year” as defined by Section 17010.

38(15) “Taxpayer” as defined by Section 17004.

39(16) “Trade or business” as defined by Section 17020.

40(17) “United States” as defined by Section 17017.

P118  1(b) The provisions of Part 10 (commencing with Section 17001)
2and Part 10.2 (commencing with Section 18401) of Division 2 of
3the Revenue and Taxation Code, relating to the following items,
4are hereby incorporated by reference and shall apply to and govern
5construction of this division:

6(1) Trade or business expense (Article 6 (commencing with
7Section 17201) of Chapter 3 of Part 10).

8(2) Deductions for retirement savings (Article 6 (commencing
9with Section 17201) of Chapter 3 of Part 10).

10(3) Distributions of property by a corporation to a shareholder
11(Chapter 4 (commencing with Section 17321) of Part 10).

12(4) Deferred compensation (Chapter 5 (commencing with
13Section 17501) of Part 10).

14(5) Partners and partnerships (Chapter 10 (commencing with
15Section 17851) of Part 10).

16(6) Gross income of nonresident taxpayersbegin delete Chapterend deletebegin insert (Chapterend insert
17 11 (commencing with Section 17951) of Part 10).

18(7) Postponement of the time for certain acts by individuals in
19or in support of the armed forces (Article 3 (commencing with
20Section 18621) of Chapter 2 of Part 10.2).

21(8) Disclosure of information (Article 2 (commencing with
22Section 19542) of Chapter 7 of Part 10.2). For this purpose
23“Franchise Tax Board” as used therein shall mean the Employment
24Development Department in respect to information obtained in
25the administration of this division.

26

SEC. 91.  

Section 742.16 of the Welfare and Institutions Code
27 is amended to read:

28

742.16.  

(a) If a minor is found to be a person described in
29Section 602 by reason of the commission of an act prohibited by
30Section 594, 594.3, 594.4, 640.5, 640.6, or 640.7 of the Penal
31Code, and the court does not remove the minor from the physical
32custody of the parent or guardian, the court as a condition of
33probation, except in any case in which the court makes a finding
34and states on the record its reasons why that condition would be
35inappropriate, shall require the minor to wash, paint, repair, or
36replace the property defaced, damaged, or destroyed by the minor
37or otherwise pay restitution to the probation officer of the county
38for disbursement to the owner or possessor of the property or both.
39In any case in which the minor is not granted probation or in which
40the minor’s cleanup, repair, or replacement of the property will
P119  1not return the property to its condition before it was defaced,
2damaged, or destroyed, the court shall make a finding of the
3amount of restitution that would be required to fully compensate
4the owner and possessor of the property for their damages. The
5court shall order the minor or the minor’s estate to pay that
6restitution to the probation officer of the county for disbursement
7to the owner or possessor of the property or both, to the extent the
8court determines that the minor or the minor’s estate have the
9ability to do so, except in any case in which the court makes a
10finding and states on the record its reasons why full restitution
11would be inappropriate. If full restitution is found to be
12inappropriate, the court shall require the minor to perform specified
13community service, except in any case in which the court makes
14a finding and states on the record its reasons why that condition
15would be inappropriate.

16(b) If a minor is found to be a person described in Section 602
17by reason of the commission of an act prohibited by Section 594,
18594.3, 594.4, 640.5, 640.6, or 640.7 of the Penal Code, and the
19graffiti or other material inscribed by the minor has been removed,
20or the property defaced by the minor has been repaired or replaced
21by a public entity that has elected, pursuant to Section 742.14, to
22have the probation officer of the county recoup its costs through
23proceedings in accordance with this section and has made cost
24findings in accordance withbegin delete subdivisionsend deletebegin insert subdivisionend insert (c) or (d) of
25Section 742.14, the court shall determine the total cost incurred
26by the public entity for said removal, repair, or replacement, using,
27if applicable, the cost findings most recently adopted by the public
28entity pursuant to subdivision (c) or (d) of Section 742.14. The
29court shall order the minor or the minor’s estate to pay those costs
30to the probation officer of the county to the extent the court
31determines that the minor or the minor’s estate have the ability to
32do so.

33(c) If the minor is found to be a person described in Section 602
34by reason of the commission of an act prohibited by Section 594,
35594.3, 594.4, 640.5, 640.6, or 640.7 of the Penal Code, and the
36minor was identified or apprehended by the law enforcement
37agency of a city or county that has elected, pursuant to Section
38742.14, to have the probation officer of the county recoup its costs
39through proceedings in accordance with this section, the court shall
40determine the cost of identifying or apprehending the minor, or
P120  1both, using, if applicable, the cost findings adopted by the city or
2county pursuant to subdivision (b) of Section 742.14. The court
3shall order the minor or the minor’s estate to pay those costs to
4the probation officer of the county to the extent the court
5determines that the minor or the minor’s estate has the ability to
6do so.

7(d) If the court determines that the minor or the minor’s estate
8is unable to pay in full the costs and damages determined pursuant
9to subdivisions (a), (b), and (c), and if the minor’s parent or parents
10have been cited into court pursuant to Section 742.18, the court
11shall hold a hearing to determine the liability of the minor’s parent
12or parents pursuant to Section 1714.1 of the Civil Code for those
13costs and damages. Except when the court makes a finding setting
14forth unusual circumstances in which parental liability would not
15serve the interests of justice, the court shall order the minor’s parent
16or parents to pay those costs and damages to the probation officer
17of the county to the extent the court determines that the parent or
18parents have the ability to pay, if the minor was in the custody or
19control of the parent or parents at the time he or she committed
20the act that forms the basis for the finding that the minor is a person
21described in Section 602. In evaluating the parent’s or parents’
22ability to pay, the court shall take into consideration the family
23income, the necessary obligations of the family, and the number
24of persons dependent upon this income.

25(e) The hearing described in subdivision (d) may be held
26immediately following the disposition hearing or at a later date,
27at the option of the court.

28(f) If the amount of costs and damages sought to be recovered
29in the hearing pursuant to subdivision (d) is five thousand dollars
30($5,000) or less, the parent or parents may not be represented by
31counsel and the probation officer of the county shall be represented
32by his or her nonattorney designee. The court shall conduct that
33hearing in accordance with Sections 116.510 and 116.520 of the
34Code of Civil Procedure. Notwithstanding the foregoing, if the
35court determines that a parent cannot properly present his or her
36defense, the court may, in its discretion, allow another individual
37to assist that parent. In addition, abegin delete husband or wifeend deletebegin insert spouseend insert may
38appear and participate in the hearing on behalf of his or her spouse
39if the representative’s spouse has given his or her consent and the
P121  1court determines that the interest of justice would be served
2thereby.

3(g) If the amount of costs and damages sought to be recovered
4in the hearing pursuant to subdivision (d) exceeds five thousand
5dollars ($5,000), the parent or parents may be represented by
6counsel of his or her or their own choosing, and the probation
7officer of the county shall be represented by the district attorney
8or an attorney or nonattorney designee of the probation officer.
9The parent or parents shall not be entitled to court-appointed
10counsel or to counsel compensated at public expense.

11(h) At the hearing conducted pursuant to subdivision (d), there
12shall be a presumption affecting the burden of proof that the
13findings of the court made pursuant to subdivisions (a), (b), and
14(c) represent the actual damages and costs attributable to the act
15of the minor that forms the basis of the finding that the minor is a
16person described in Section 602.

17(i) If the parent or parents, after having been cited to appear
18pursuant to Section 742.18, fail to appear as ordered, the court
19shall order the parent or parents to pay the full amount of the costs
20and damages determined by the court pursuant to subdivisions (a),
21(b), and (c).

22(j) Execution may be issued on an order issued by the court
23pursuant to this section in the same manner as on a judgment in a
24civil action, including any balance unpaid at the termination of the
25court’s jurisdiction over the minor.

26(k) At any time prior to the satisfaction of a judgment entered
27pursuant to this section, a person against whom the judgment was
28entered may petition the rendering court to modify or vacate the
29judgment on the showing of a change in circumstances relating to
30his or her ability to pay the judgment.

31(l) For purposes of a hearing conducted pursuant to subdivision
32(d), the judge of the juvenile court shall have the jurisdiction of a
33judge of the superior court in a limited civil case, and if the amount
34of the demand is within the jurisdictional limits stated in Sections
35116.220 and 116.221 of the Code of Civil Procedure, the judge of
36the juvenile court shall have the powers of a judge presiding over
37the small claims court.

38(m) Nothing in this section shall be construed to limit the
39authority of a juvenile court to provide conditions of probation.

P122  1(n) The options available to the court pursuant to subdivisions
2(a), (b), (c), (d), and (k), to order payment by the minor and his or
3her parent or parents of less than the full costs described in
4subdivisions (a), (b), and (c), on grounds of financial inability or
5for reasons of justice, shall not be available to a superior court in
6an ordinary civil proceeding pursuant to subdivision (b) of Section
71714.1 of the Civil Code, except that in any proceeding pursuant
8to either subdivision (b) of Section 1714.1 of the Civil Code or
9this section, the maximum amount that a parent or a minor may
10be ordered to pay shall not exceed twenty thousand dollars
11($20,000) for each tort of the minor.

12

SEC. 92.  

Section 7275 of the Welfare and Institutions Code is
13amended to read:

14

7275.  

(a) Thebegin delete husband, wife,end deletebegin insert spouse,end insert father, mother, or children
15of a patient in a state hospital, the estates of these persons, and the
16guardian or conservator and administrator of the estate of the
17patient shall cause him or her to be properly and suitably cared for
18and maintained, and shall pay the costs and charges for
19transportation to a state institution. Thebegin delete husband, wife,end deletebegin insert spouse,end insert
20 father, mother, or children of a patient in a state hospital and the
21administrators of their estates, and the estate of the person shall
22be liable for his or her care, support, and maintenance in a state
23institution of which he or she is a patient. The liability of these
24persons and estates shall be a joint and several liability, and the
25liability shall exist whether the person has become a patient of a
26state institution pursuant to the provisions of this code or pursuant
27to the provisions of Sections 1026, 1368, 1369, 1370, and 1372 of
28the Penal Code.

29(b) This section does not impose liability for the care of persons
30with intellectual disabilities in state hospitals.

31

SEC. 93.  

Section 12003 of the Welfare and Institutions Code
32 is amended to read:

33

12003.  

For the purposes of this chapter, neither the residence
34nor domicile of thebegin delete husband or wifeend deletebegin insert spouseend insert shall be deemed the
35residence or domicile of the other, but each may have a separate
36residence or domicile dependent upon proof of the fact and not on
37legal presumption.

38For the purposes of this chapter, a minor child shall be deemed
39to have resided in the state during any period in which such child
40has been physically present in the state.

P123  1

SEC. 94.  

Section 14140 of the Welfare and Institutions Code
2 is amended to read:

3

14140.  

The following definitions shall apply to the provisions
4of this article:

5(a) “Net worth” means:

6(1) Personal property, which consists of cash, savings accounts,
7securities, and similar items; notes,begin delete mortgagesend deletebegin insert mortgages,end insert and
8deeds of trust; the cash surrender value of life insurance on the life
9of the applicant or beneficiary, on the life of the spouse or any
10member of the family, except as provided in Section 11158; motor
11vehicles, except one which meets the transportation needs of the
12person or family; any other property or equity other than real estate,
13except that property specified in subdivisions (1), (2) and (3) of
14Section 11155.

15(2) Real property, including any interest in land of more than
16nominal interest which does not constitute the home of the
17applicant for aid under this chapter. The home of the applicant
18shall be exempt from consideration as net worth under this section
19to the extent of ten thousand dollars ($10,000) in assessed
20valuation, as assessed by the county assessor.

21(3) “Income” which consists of the sum of adjusted gross income
22as used for purposes of the Federal Income Tax Law.

23(b) “Family unit” means:

24(1) In the case of an unmarried patient under 21 years of age
25living with hisbegin insert or herend insert parent or parents, the patient and hisbegin insert or herend insert
26 parents.

27(2) In the case of a married patient under 21 years of age, the
28patient and hisbegin insert or herend insert spouse.

29(3) In the case of a patient over 21, the patient, and if married,
30the patient’sbegin delete wife.end deletebegin insert spouse.end insert

31

SEC. 95.  

Section 18291 of the Welfare and Institutions Code
32 is amended to read:

33

18291.  

For purposes of this chapter:

34(a) “Domestic violence” means abuse committed against an
35adult or a minor who is a spouse, former spouse, cohabitant, former
36cohabitant, or person with whom the suspect has had a child or is
37having or has had a dating or engagement relationship.

38(b) “Cohabitant” means two unrelated adult persons living
39together for a substantial period of time, resulting in some
40permanency of relationship. Factors that may determine whether
P124  1persons are cohabiting include, but are not limited to, all of the
2following:

3(1) Sexual relations between the parties while sharing the same
4living quarters.

5(2) Sharing of income or expenses.

6(3) Joint use or ownership of property.

7(4) Whether the parties hold themselves out asbegin delete husband and
8wife.end delete
begin insert spouses.end insert

9(5) The continuity of the relationship.

10(6) The length of the relationship.

11(c) “Domestic violence shelter” means a shelter for domestic
12violence victims that meets all of the following requirements:

13(1) Provides shelter in an undisclosed and secured location.

14(2) Provides staff that meet the requirements set forth in Section
151037.1 of the Evidence Code.

16(3) Meets the requirements set forth in Section 18294.

17(d) “Undisclosed” means a location that is not advertised or
18publicized.



O

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