Amended in Assembly May 16, 2016

Senate BillNo. 1171


Introduced by Committee on Judiciary (Senators Jackson (Chair), Anderson, Hertzberg, Leno, Monning, Moorlach, and Wieckowski)

February 18, 2016


An act to amend Sections 655, 1264, 2554, 2556.1, 2715, 2759, 3020, 4430, 6026.7, 6360, 6410.5, 7541.1, 7685, 7818, 19351, and 19861 of the Business and Professions Code, to amend Sections 48a, 52.5, 1770, 1798.29, and 1798.82 of the Civil Code, to amend Sections 437c, 472a, 527.6, 765.030, 832, 835, 1084, 1097, 2025.010, 2031.010, 2033.010, 2035.010, 2036.010, and 2093 of, to amend and renumber Sections 850, 851, 852, 853, 854, 855, and 856 of, and to amend the heading of Chapter 8 (commencing with Section 850) of Title 10 of Part 2 of, the Code of Civil Procedure, to amend Sections 2105, 2207, 17708.02, 25100, and 25247 of the Corporations Code, to amend Sections 221.6, 1313, 8340.4, 17250.25, 17250.35, 33353.7, 41360, 41422, 42925, 44977.5, 44984, 45192, 46392, 48204.2, 51421.5, 51745.6, 66302, 69800.2, 70037, 84750.5, 84916, 87787, 88192, 89090, 89708, 89712, 92630, and 94925 of, and to amend and repeal Section 66749.5 of, the Education Code, to amend Sections 17, 1000, 1301, 2142, 2150, 2155, 2196, 2250, 2263, 2265, 2270, 2600, 3025, 3114, 6850, 6850.5, 6851, 6853, 6854, 6854.5, 6855, 6857, 6859, 6861.5, 6862, 6863, 7901, 7902, 7903, 7904, 7911, 7912, 7913, 7918, 7921, 7922, 7927, 12309.5, 13307, 14026, 14405, 18108, and 18108.1 of, and to amend the heading of Article 2 (commencing with Section 6851) of Chapter 5 of Part 1 of Division 6 of, the Elections Code, to amend Sections 980, 1010, 1106, and 1157 of the Evidence Code, to amend Sections 7612, 7613.5, 8811, and 8908 of, and to repeal Sections 20024 and 20039 of, the Family Code, to amend Sections 2022, 6440, 7704, and 12029 of the Fish and Game Code, to amend Sections 14651.5, 27581.1, 27583.2, 27583.4, 52332, 55631, 56109, 67132, and 76953.5 of the Food and Agricultural Code, to amend Sectionsbegin insert 421,end insert 1225, 5970, 6254.5, 7161, 8594.15, 8670.13, 8670.13.3, 8670.28, 14670.36, 17581.9, 19130, 19241, 22865, 34886, 53515, 56332, 82015, 83123.6, 87207, and 89506 of, to amend and renumber Section 8670.95 of, and to amend and renumber the heading of Chapter 15 (commencing with Section 5970) of Division 6 of Titlebegin insert 1end insert of, the Government Code, to amend Sections 1204.2, 1262.5, 1266, 1279.7, 1342.71, 1358.18, 1367.005, 1367.27, 1569.2, 1596.8662, 1760.2, 12640, 18080, 25150.7, 25180, 25250.15, 25270.6, 32132.8, 34191.3, 44017, 44559.4, 101853.1, 112895, 113789, 117945, 118330, 120375, and 129160 of, and to amend and renumber Section 110424 of, the Health and Safety Code, to amend Sections 38.6, 10082.5, 10112.27, 10123.193, 10133.15, 10169, 10192.18, 10489.2, 10489.3, 10489.96, 10489.99, 10603, and 12389 of the Insurance Code, to amend Sections 139.2, 1720, 2750.8, 3503, and 4663 of the Labor Code, to amend Section 451 of the Military and Veterans Code, to amend Sections 136.2, 186.2, 186.11, 186.12,begin insert 236.1,end insert 241, 502.8, 670, 679.10, 832.3, 1214.5, 1524.2, 1526, 1546, 1546.1, 1546.2, 3000.08, 3016, 3056, 4030, 4031, 5065.5,begin delete 15003end deletebegin insert 15003,end insert and 33880 of the Penal Code, to amend Sections 1490, 1510.1, 1828, 1851, 4788, 5203, and 16062 of the Probate Code, to amend Section 20111.6 of the Public Contract Code, to amend Sections 541.5, 5002.2, 5071.7, 8750, 25401, 26003, 30411, 42023.1, and 71103.5 of the Public Resources Code, to amend Sections 274, 635, 873, 913.8, 1701, 2833, 2870, 7661, 8282, 21252, and 130350.7 of, and to amend and renumber Section 387.8 of, the Public Utilities Code, to amend Sections 408, 423.3, 12206, 17052.6, 17255, 18805, 18807, 18808, 19136, 19161, 19255, 19533, 19772, 20640.3, 21021, 23156, 23610.5, and 24356 of, to amend and renumber Section 24355.5 of, to add the heading of Part 13.5 (commencing with Section 31020) to Division 2 of, and to repeal Sections 18035.6, 18036.6, and 41030 of, the Revenue and Taxation Code, to amend Sections 13003 and 14200 of the Unemployment Insurance Code, to amend Sections 2404.5, 11102.6, 16377, 21294, 22507.1, and 40215 of the Vehicle Code, to amend Sections 377, 10608.34, and 50906 of the Water Code, and to amend Sections 290.2, 366.21, 786, 4474.1, 11203, 11469, 11477, 14094.3, 14126.022, 14126.027, 14132.06, 14132.275, 14138.21, 15657.03, 16501.1, 17603, and 24005 of the Welfare and Institutions Code, to amend Sections 325 and 330 of Chapter 303 of the Statutes of 2015, and to amend Section 8 of Chapter 590 of the Statutes of 2015, relating to the maintenance of the codes.

LEGISLATIVE COUNSEL’S DIGEST

SB 1171, as amended, Committee on Judiciary. Maintenance of the codes.

Existing law directs the Legislative Counsel to advise the Legislature from time to time as to legislation necessary to maintain the codes.

This bill would make nonsubstantive changes in various provisions of law to effectuate the recommendations made by the Legislative Counsel to the Legislature.

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

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

P3    1

SECTION 1.  

Section 655 of the Business and Professions Code
2 is amended to read:

3

655.  

(a) For purposes of this section, the following terms have
4the following meanings:

5(1) “Health plan” means a health care service plan licensed
6pursuant to the Knox-Keene Health Care Service Plan Act of 1975
7(Chapter 2.2 (commencing with Section 1340) of Division 2 of
8the Health and Safety Code).

9(2) “Optical company” means a person or entity that is engaged
10in the manufacture, sale, or distribution to physicians and surgeons,
11optometrists, health plans, or dispensing opticians of lenses, frames,
12optical supplies, or optometric appliances or devices or kindred
13products.

14(3) “Optometrist” means a person licensed pursuant to Chapter
157 (commencing with Section 3000) or an optometric corporation,
16as described in Section 3160.

17(4) “Registered dispensing optician” means a person licensed
18pursuant to Chapter 5.5 (commencing with Section 2550).

19(5) “Therapeutic ophthalmic product” means lenses or other
20products that provide direct treatment of eye disease or visual
21rehabilitation for diseased eyes.

22(b) An optometrist shall not have any membership, proprietary
23interest, coownership, or any profit-sharing arrangement, either
P4    1by stock ownership, interlocking directors, trusteeship, mortgage,
2or trust deed, with any registered dispensing optician or any optical
3company, except as otherwise permitted under this section.

4(c) (1) A registered dispensing optician or an optical company
5may operate, own, or have an ownership interest in a health plan
6so long as the health plan does not directly employ optometrists
7to provide optometric services directly to enrollees of the health
8plan, and may directly or indirectly provide products and services
9to the health plan, its contracted providers or enrollees, or other
10optometrists. For purposes of this section, an optometrist may be
11employed by a health plan as a clinical director for the health plan
12pursuant to Section 1367.01 of the Health and Safety Code or to
13perform services related to utilization management, quality
14assurance, or other similar related services that do not require the
15optometrist to directly provide health care services to enrollees.
16In addition, an optometrist serving as a clinical director shall not
17employ optometrists to provide health care services to enrollees
18of the health plan for which the optometrist is serving as clinical
19director. For purposes of this section, the health plan’s utilization
20 management and quality assurance programs that are consistent
21with the Knox-Keene Health Care Service Plan Act of 1975
22(Chapter 2.2 (commencing with Section 1340) of Division 2 of
23the Health and Safety Code) do not constitute providing health
24care services to enrollees.

25(2) The registered dispensing optician or optical company shall
26not interfere with the professional judgment of the optometrist.

27(3) The Department of Managed Health Care shall forward to
28the State Board of Optometry any complaints received from
29consumers that allege an optometrist violated the Optometry
30Practice Act (Chapter 7 (commencing with Section 3000)). The
31Department of Managed Health Care and the State Board of
32Optometry shall enter into an interagency agreement regarding the
33sharing of information related to the services provided by an
34optometrist that may be violating the Optometry Practice Act that
35the Department of Managed Health Care encounters in the course
36of administering the Knox-Keene Health Care Service Plan Act
37of 1975 (Chapter 2.2 (commencing with Section 1340) of Division
382 of the Health and Safety Code).

39(d) An optometrist, a registered dispensing optician, an optical
40company, or a health plan may execute a lease or other written
P5    1agreement giving rise to a direct or indirect landlord-tenant
2relationship with an optometrist, if all of the following conditions
3are contained in the written agreement establishing the
4landlord-tenant relationship:

5(1) (A) The practice shall be owned by the optometrist and in
6every phase be under the optometrist’s exclusive control, including
7the selection and supervision of optometric staff, the scheduling
8of patients, the amount of time the optometrist spends with patients,
9fees charged for optometric products and services, the examination
10procedures and treatment provided to patients, and the optometrist’s
11contracting with managed care organizations.

12(B) Subparagraph (A) does not preclude a lease from including
13commercially reasonable terms that: (i) require the provision of
14optometric services at the leased space during certain days and
15hours, (ii) restrict the leased space from being used for the sale or
16offer for sale of spectacles, frames, lenses, contact lenses, or other
17ophthalmic products, except that the optometrist shall be permitted
18to sell therapeutic ophthalmic products if the registered dispensing
19optician, health plan, or optical company located on or adjacent
20to the optometrist’s leased space does not offer any substantially
21similar therapeutic ophthalmic products for sale, (iii) require the
22optometrist to contract with a health plan network, health plan, or
23health insurer, or (iv) permit the landlord to directly or indirectly
24provide furnishings and equipment in the leased space.

25(2) The optometrist’s records shall be the sole property of the
26optometrist. Only the optometrist and those persons with written
27authorization from the optometrist have access to the patient
28records and the examination room, except as otherwise provided
29by law.

30(3) The optometrist’s leased space shall be definite and distinct
31from space occupied by other occupants of the premises, have a
32sign designating that the leased space is occupied by an
33independent optometrist or optometrists and be accessible to the
34optometrist after hours or in the case of an emergency, subject to
35the facility’s general accessibility. This paragraph does not require
36a separate entrance to the optometrist’s leased space.

37(4) All signs and displays shall be separate and distinct from
38that of the other occupants and shall have the optometrist’s name
39and the word “optometrist” prominently displayed in connection
40therewith. This paragraph does not prohibit the optometrist from
P6    1advertising the optometrist’s practice location with reference to
2other occupants or prohibit the optometrist or registered dispensing
3optician from advertising his or her participation in any health
4plan’s network or the health plan’s products in which the
5optometrist or registered dispensing optician participates.

6(5) There shall be no signs displayed on any part of the premises
7or in any advertising indicating that the optometrist is employed
8or controlled by the registered dispensing optician, health plan, or
9optical company.

10(6) Except for a statement that an independent doctor of
11optometry is located in the leased space, in-store pricing signs,
12and as otherwise permitted by this subdivision, the registered
13dispensing optician or optical company shall not link its advertising
14with the optometrist’s name, practice, or fees.

15(7) Notwithstanding paragraphs (4) and (6), this subdivision
16does not preclude a health plan from advertising its health plan
17products and associated premium costs and any copayments,
18coinsurance, deductibles, or other forms of cost-sharing, or the
19names and locations of the health plan’s providers, including any
20optometrists or registered dispensing opticians providing
21professional services, in compliance with the Knox-Keene Health
22Care Service Plan Act of 1975 (Chapter 2.2 (commencing with
23Section 1340) of Division 2 of the Health and Safety Code).

24(8) A health plan that advertises its products and services in
25accordance with paragraph (7) shall not advertise the optometrist’s
26fees for products and services that are not included in the health
27plan’s contract with the optometrist.

28(9) The optometrist shall not be precluded from collecting fees
29for services that are not included in a health plan’s products and
30services, subject to any patient disclosure requirements contained
31in the health plan’s provider agreement with the optometrist or
32that are not otherwise prohibited by the Knox-Keene Health Care
33Service Plan Act of 1975 (Chapter 2.2 (commencing with Section
341340) of Division 2 of the Health and Safety Code).

35(10) The term of the lease shall be no less than one year and
36shall not require the optometrist to contract exclusively with a
37health plan. The optometrist may terminate the lease according to
38the terms of the lease. The landlord may terminate the lease for
39the following reasons:

P7    1(A) The optometrist’s failure to maintain a license to practice
2optometry, or the imposition of restrictions, suspension, or
3revocation of the optometrist’s license, or if the optometrist or the
4optometrist’s employee is or becomes ineligible to participate in
5state or federal government-funded programs.

6(B) Termination of any underlying lease in which the optometrist
7has subleased space or the optometrist’s failure to comply with
8the underlying lease provisions that apply to the optometrist.

9(C) If the health plan is the landlord, the termination of the
10provider agreement between the health plan and the optometrist,
11in accordance with the Knox-Keene Health Care Service Plan Act
12of 1975 (Chapter 2.2 (commencing with Section 1340) of Division
132 of the Health and Safety Code).

14(D) Other reasons pursuant to the terms of the lease or permitted
15under the Civil Code.

16(11) The landlord shall act in good faith in terminating the lease,
17and the landlord shall not terminate the lease for reasons that
18constitute interference with the practice of optometry.

19(12) Lease or rent terms and payments shall not be based on the
20number of eye exams performed, prescriptions written, patient
21referrals, or the sale or promotion of the products of a registered
22dispensing optician or an optical company.

23(13) The landlord shall not terminate the lease solely because
24of a report, complaint, or allegation filed by the optometrist against
25the landlord, a registered dispensing optician, or a health plan to
26the State Board of Optometry or the Department of Managed
27Health Care, or any law enforcement or other regulatory agency.

28(14) The landlord shall provide the optometrist with written
29notice of the scheduled expiration date of a lease at least 60 days
30before the scheduled expiration date. This notice obligation does
31not affect the ability of either party to terminate the lease pursuant
32to this section. The landlord shall not interfere with an outgoing
33optometrist’s efforts to inform the optometrist’s patients, in
34accordance with customary practice and professional obligations,
35of the relocation of the optometrist’s practice.

36(15) (A) The State Board of Optometry may inspect, upon
37request, an individual lease agreement pursuant to its
38investigational authority, and if a request to inspect is made, the
39landlord or tenant, as applicable, promptly complies with the
40request. Failure or refusal to comply with the request for a lease
P8    1or agreement within 30 days of receiving the request constitutes
2unprofessional conduct and is grounds for disciplinary action by
3the appropriate regulatory agency. Only personal information as
4defined in Section 1798.3 of the Civil Code may be redacted prior
5to submission of the lease or agreement. This section does not
6affect the Department of Managed Health Care’s authority to
7inspect all books and records of a health plan pursuant to Section
81381 of the Health and Safety Code.

9(B) Any financial information contained in the lease or
10agreement submitted to a regulatory agency, pursuant to this
11paragraph, is considered confidential trade secret information that
12is exempt from disclosure under the California Public Records Act
13(Chapter 3.5 (commencing with Section 6250) of Division 7 of
14Title 1 of the Government Code).

15(16) This subdivision does not apply to the relationship between
16any optometrist employee and the employer medical group, or the
17relationship between a medical group exclusively contracted with
18a health plan regulated by the Department of Managed Health Care
19and that health plan.

20(e) A registered dispensing optician shall not have any
21membership, proprietary interest, coownership, or profit sharing
22arrangement either by stock ownership, interlocking directors,
23trusteeship, mortgage, or trust deed, with an optometrist, except
24as permitted under this section.

25(f)  This section does not prohibit a person licensed under
26Chapter 5 (commencing with Section 2000) or its professional
27corporation from contracting with or employing optometrists,
28ophthalmologists, or optometric assistants and entering into a
29contract or landlord tenant relationship with a health plan, an
30optical company, or a registered dispensing optician, in accordance
31with Sections 650 and 654.

32(g) A violation of this section constitutes a misdemeanor as to
33a person licensed under Chapter 7 (commencing with Section
343000) and as to any and all persons, whether or not licensed under
35this division, who participate with the licensed person in violating
36any provision of this section.

37

SEC. 2.  

Section 1264 of the Business and Professions Code is
38amended to read:

39

1264.  

(a) The department shall issue a clinical chemist, clinical
40microbiologist, clinical toxicologist, clinical genetic molecular
P9    1biologist, or clinical cytogeneticist license to each person who has
2applied for the license on forms provided by the department, who
3is a lawful holder of a master of science or doctoral degree in the
4specialty for which the applicant is seeking a license, and who has
5met such additional reasonable qualifications of training, education,
6and experience as the department may establish by regulations.
7The department shall issue an oral and maxillofacial pathologist
8license to every applicant for licensure who has applied for the
9license on forms provided by the department, who is a registered
10Diplomate of the American Board of Oral and Maxillofacial
11Pathology, and who meets any additional and reasonable
12 qualifications of training, education, and experience as the
13department may establish by regulation.

14(b) The graduate education shall have included 30 semester
15hours of coursework in the applicant’s specialty. Applicants
16possessing only a master of science degree shall have the equivalent
17of one year of full-time, directed study or training in procedures
18and principles involved in the development, modification, or
19evaluation of laboratory methods, including training in complex
20methods applicable to diagnostic laboratory work. Each applicant
21shall have had one year of training in his or her specialty in a
22clinical laboratory acceptable to the department and three years of
23experience in his or her specialty in a clinical laboratory, two years
24of which must have been at a supervisory level. The education
25shall have been obtained in one or more established and reputable
26institutions maintaining standards equivalent, as determined by
27the department, to those institutions accredited by an agency
28acceptable to the department. The department shall determine by
29examination that the applicant is properly qualified. Examinations,
30training, or experience requirements for specialty licenses shall
31cover only the specialty concerned.

32(c) The department may issue licenses without examination to
33applicants who have passed examinations of other states or national
34accrediting boards whose requirements are equal to or greater than
35those required by this chapter and regulations established by the
36department. The evaluation of other state requirements or
37requirements of national accrediting boards shall be carried out
38by the department with the assistance of representatives from the
39licensed groups. This section does not apply to persons who have
40passed an examination by another state or national accrediting
P10   1board before the establishment of requirements that are equal to
2or exceed those of this chapter or regulations of the department.

3(d) The department may issue licenses without examination to
4applicants who had met standards of education and training, defined
5by regulations, before the date of the adoption of implementing
6regulations.

7(e) The department shall adopt regulations to conform to this
8section.

9

SEC. 3.  

Section 2554 of the Business and Professions Code is
10amended to read:

11

2554.  

Each registrant shall conspicuously and prominently
12display at each registered location the following consumer
13information:

14“Eye doctors are required to provide patients with a copy of their
15ophthalmic lens prescriptions as follows:

16Spectacle prescriptions: Release upon completion of exam.

17Contact lens prescriptions: Release upon completion of exam
18or upon completion of the fitting process.

19Patients may take their prescription to any eye doctor or
20registered dispensing optician to be filled.

21Optometrists and registered dispensing opticians are regulated
22by the State Board of Optometry. The State Board of Optometry
23receives and investigates all consumer complaints involving the
24practice of optometry and registered dispensing opticians.
25Complaints involving a California-licensed optometrist or a
26registered dispensing optician should be directed to:

27California State Board of Optometry

28Department of Consumer Affairs

292450 Del Paso Road, Suite 105

30Sacramento, CA 95834

31Phone: 1-866-585-2666 or (916) 575-7170

32Email: optometry@dca.ca.gov

33Internet Web site: www.optometry.ca.gov”

34

SEC. 4.  

Section 2556.1 of the Business and Professions Code
35 is amended to read:

36

2556.1.  

All licensed optometrists in a setting with a registered
37dispensing optician shall report the business relationship to the
38State Board of Optometry, as determined by the board. The State
39Board of Optometry shall have the authority to inspect any
40premises at which the business of a registered dispensing optician
P11   1is co-located with the practice of an optometrist, for purposes of
2determining compliance with Section 655. The inspection may
3include the review of any written lease or agreement between the
4registered dispensing optician and the optometrist or between the
5optometrist and the health plan. Failure to comply with the
6inspection or any request for information by the board may subject
7the party to disciplinary action. The board shall provide a copy of
8its inspection results, if applicable, to the Department of Managed
9Health Care.

10

SEC. 5.  

Section 2715 of the Business and Professions Code is
11amended to read:

12

2715.  

(a) The board shall prosecute all persons guilty of
13violating this chapter.

14(b) Except as provided by Section 159.5, the board, in
15accordance with the Civil Service Law, may employ the personnel
16it deems necessary to carry into effect this chapter.

17(c) The board shall have and use a seal bearing the name “Board
18of Registered Nursing.” The board may adopt, amend, or repeal,
19in accordance with the Administrative Procedure Act (Chapter 3.5
20(commencing with Section 11340) of Part 1 of Division 3 of Title
212 of the Government Code), the rules and regulations that may be
22reasonably necessary to enable it to carry into effect this chapter.

23

SEC. 6.  

Section 2759 of the Business and Professions Code is
24amended to read:

25

2759.  

The board shall discipline the holder of any license,
26whose default has been entered or who has been heard by the board
27and found guilty, by any of the following methods:

28(a) Suspending judgment.

29(b) Placing him or her upon probation.

30(c) Suspending his or her right to practice nursing for a period
31not exceeding one year.

32(d) Revoking his or her license.

33(e) Taking other action in relation to disciplining him or her as
34the board in its discretion may deem proper.

35

SEC. 7.  

Section 3020 of the Business and Professions Code is
36amended to read:

37

3020.  

(a) There shall be established under the State Board of
38Optometry a dispensing optician committee to advise and make
39recommendations to the board regarding the regulation of
40dispensing opticians pursuant to Chapter 5.5 (commencing with
P12   1Section 2550). The committee shall consist of five members, two
2of whom shall be registered dispensing opticians, two of whom
3shall be public members, and one of whom shall be a member of
4the board. Initial appointments to the committee shall be made by
5the board. The board shall stagger the terms of the initial members
6appointed. The filling of vacancies on the committee shall be made
7by the board upon recommendations by the committee.

8(b) The committee shall be responsible for:

9(1) Recommending registration standards and criteria for the
10registration of dispensing opticians.

11(2) Reviewing the disciplinary guidelines relating to registered
12dispensing opticians.

13(3) Recommending to the board changes or additions to
14regulations adopted pursuant to Chapter 5.5 (commencing with
15Section 2550).

16(4) Carrying out and implementing all responsibilities and duties
17imposed upon it pursuant to this chapter or as delegated to it by
18the board.

19(c) The committee shall meet at least twice a year and as needed
20in order to conduct its business.

21(d) Recommendations by the committee regarding scope of
22practice or regulatory changes or additions shall be approved,
23 modified, or rejected by the board within 90 days of submission
24of the recommendation to the board. If the board rejects or
25significantly modifies the intent or scope of the recommendation,
26the committee may request that the board provide its reasons in
27writing for rejecting or significantly modifying the
28recommendation, which shall be provided by the board within 30
29days of the request.

30(e) After the initial appointments by the board pursuant to
31subdivision (a), the Governor shall appoint the registered
32dispensing optician members and the public members. The
33committee shall submit a recommendation to the board regarding
34which board member should be appointed to serve on the
35committee, and the board shall appoint the member to serve.
36Committee members shall serve a term of four years except for
37the initial staggered terms. A member may be reappointed, but no
38person shall serve as a member of the committee for more than
39two consecutive terms.

P13   1

SEC. 8.  

Section 4430 of the Business and Professions Code is
2amended to read:

3

4430.  

For purposes of this chapter, the following definitions
4shall apply:

5(a) “Carrier” means a health care service plan, as defined in
6Section 1345 of the Health and Safety Code, or a health insurer
7that issues policies of health insurance, as defined in Section 106
8of the Insurance Code.

9(b) “Clerical or recordkeeping error” includes a typographical
10error, scrivener’s error, or computer error in a required document
11or record.

12(c) “Extrapolation” means the practice of inferring a frequency
13or dollar amount of overpayments, underpayments, nonvalid
14claims, or other errors on any portion of claims submitted, based
15on the frequency or dollar amount of overpayments,
16 underpayments, nonvalid claims, or other errors actually measured
17in a sample of claims.

18(d) “Health benefit plan” means any plan or program that
19provides, arranges, pays for, or reimburses the cost of health
20benefits. “Health benefit plan” includes, but is not limited to, a
21health care service plan contract issued by a health care service
22plan, as defined in Section 1345 of the Health and Safety Code,
23and a policy of health insurance, as defined in Section 106 of the
24Insurance Code, issued by a health insurer.

25(e) “Maximum allowable cost” means the maximum amount
26that a pharmacy benefit manager will reimburse a pharmacy for
27the cost of a drug.

28(f) “Maximum allowable cost list” means a list of drugs for
29which a maximum allowable cost has been established by a
30pharmacy benefit manager.

31(g) “Obsolete” means a drug that may be listed in national drug
32pricing compendia but is no longer available to be dispensed based
33on the expiration date of the last lot manufactured.

34(h) “Pharmacy” has the same meaning as provided in Section
354037.

36(i) “Pharmacy audit” means an audit, either onsite or remotely,
37of any records of a pharmacy conducted by or on behalf of a carrier
38or a pharmacy benefits manager, or a representative thereof, for
39prescription drugs that were dispensed by that pharmacy to
40beneficiaries of a health benefit plan pursuant to a contract with
P14   1the health benefit plan or the issuer or administrator thereof.
2“Pharmacy audit” does not include a concurrent review or desk
3audit that occurs within three business days of transmission of a
4claim, or a concurrent review or desk audit if a chargeback or
5 recoupment is not demanded.

6(j) “Pharmacy benefit manager” means a person, business, or
7other entity that, pursuant to a contract or under an employment
8relationship with a carrier, health benefit plan sponsor, or other
9third-party payer, either directly or through an intermediary,
10manages the prescription drug coverage provided by the carrier,
11plan sponsor, or other third-party payer, including, but not limited
12to, the processing and payment of claims for prescription drugs,
13the performance of drug utilization review, the processing of drug
14prior authorization requests, the adjudication of appeals or
15grievances related to prescription drug coverage, contracting with
16network pharmacies, and controlling the cost of covered
17prescription drugs.

18

SEC. 9.  

Section 6026.7 of the Business and Professions Code,
19as added by Section 5 of Chapter 537 of the Statutes of 2015, is
20amended to read:

21

6026.7.  

(a) The State Bar is subject to the Bagley-Keene Open
22Meeting Act (Article 9 (commencing with Section 11120) of
23Chapter 1 of Part 1 of Division 3 of Title 2 of the Government
24Code) and all meetings of the State Bar are subject to the
25Bagley-Keene Open Meeting Act.

26(b) Notwithstanding any other law, the Bagley-Keene Open
27Meeting Act shall not apply to the Commission on Judicial
28Nominees Evaluation or the Committee of Bar Examiners.

29(c) This section shall become operative on April 1, 2016.

30

SEC. 10.  

Section 6360 of the Business and Professions Code
31 is amended to read:

32

6360.  

(a) A law library established under this chapter shall be
33free to the judiciary, to state and county officials, to members of
34the State Bar of California, and to all residents of the county, for
35the examination of books and other publications at the library or
36its branches.

37(b) The board of law library trustees may permit the removal
38of the books and other publications from the library and its
39branches as it considers proper, subject to those rules, and, in its
40discretion, the giving of security, as it may provide to ensure the
P15   1safekeeping and prompt return thereof, but security shall not be
2required of members of the judiciary or county officials. The board
3may provide for the levying of fines and charges for violation of
4the rules, and may make charges for special services, such as the
5making of photocopies of pages of library books, electronic
6delivery, messenger and other delivery services, educational
7programs, special events, and provision of supplies or food
8services.

9(c) The board of law library trustees may require persons other
10than members of the judiciary, county officials, and members of
11the bar resident in the county, to pay dues as the board may fix for
12the privilege of removing books and other publications from the
13library. With the approval of the board of supervisors, the board
14of law library trustees may charge individual members of the bar
15resident in the county fees for the removal of books and other
16publications from the library. These fees shall not exceed the cost
17of providing the service.

18

SEC. 11.  

Section 6410.5 of the Business and Professions Code
19 is amended to read:

20

6410.5.  

(a) It is unlawful for any legal document assistant or
21unlawful detainer assistant, in the first contact with a prospective
22client of legal document or unlawful detainer assistant services,
23to enter into a contract or agreement for services or accept any
24compensation unless the legal document assistant or the unlawful
25detainer assistant states orally, clearly, affirmatively, and expressly
26all of the following, before making any other statement, except
27statements required by law in telephonic or home solicitations,
28and a greeting, or asking the prospective client any questions:

29(1) The identity of the person making the solicitation.

30(2) The trade name of the person represented by the person
31making the solicitation, if any.

32(3) The kind of services being offered for sale.

33(4) The statement: “I am not an attorney” and, if the person
34offering legal document assistant or unlawful detainer assistant
35services is a partnership or a corporation, or uses a fictitious
36business name, “[name] is not a law firm. I/we cannot represent
37you in court, advise you about your legal rights or the law, or select
38legal forms for you.”

39(5) The county in which the legal document assistant or unlawful
40detainer assistant is registered and his or her registration number.

P16   1(6) The expiration date of the legal document assistant’s or
2unlawful detainer assistant’s current registration period.

3(b) After the legal document assistant or unlawful detainer
4assistant makes the oral statements required pursuant to subdivision
5(a), and before the legal document assistant or unlawful detainer
6assistant enters into a contract or agreement for services or accepts
7any compensation, the legal document assistant or unlawful
8detainer assistant shall provide the prospective client with a “Notice
9to Consumer” set forth below. After allowing the prospective client
10time to read the notice, the legal document assistant or unlawful
11detainer assistant shall ask the prospective client to sign and date
12the notice. If the first contact is not in person, the legal document
13assistant or unlawful detainer assistant shall provide the notice to
14the prospective client at the first in-person meeting or mail the
15notice to the prospective client before entering into a contract or
16agreement for services or accepting any compensation. The notice
17shall be set forth in black, bold, 12-point type on a separate, white,
18 812 by 11 inch sheet of paper that contains no other print or
19graphics, and shall be in the form set forth below. The notice shall
20contain only the appropriate name or other designation from those
21indicated in brackets below. At the time a prospective client signs
22the notice and before that prospective client is offered any contract
23or agreement for signature, the legal document assistant or unlawful
24detainer assistant shall give the prospective client a clearly legible
25copy of the signed notice. A legal document assistant or unlawful
26detainer assistant shall not ask or require a prospective client or a
27client to sign any other form of acknowledgment regarding this
28notice.


29

 

NOTICE TO CONSUMER

 

DO NOT SIGN ANYTHING BEFORE YOU READ THIS PAGE

 

In the first conversation when you contacted [the unlawful detainer assistant or the legal document assistant], did [he or she] explain . . . . . . . . .

 

[Name of unlawful detainer assistant or legal document assistant] is not an attorney.

 

[Name of corporation or partnership, if any, that is offering legal document assistant services or unlawful detainer assistant services] is not a law firm.

 

[He/she/name of the business] cannot represent you in court.

 

[He/she/name of the business] cannot advise you about your legal rights or the law.

 

[He/she/name of the business] cannot select legal forms for you.

 

[He/she/name of the business] is registered in [county name] and the registration number is [registration number].

 

[He/she/name of the business]’s registration is valid until [date of expiration of registration], after which it must be renewed.

 
To confirm that [he/she/name of business] is registered, you may contact the [county name] clerk’s office at [office address], [or] [office phone number], [or] [if available, office Internet Web site].
 

Choose one:

 

  Yes, [he/she] explained.

  No, [he/she] did not explain.

 

Date:

 

Signature:

P17  30

 

31(c) The legal document assistant or unlawful detainer assistant
32shall be responsible for translating, if necessary, the “Notice to
33Consumer” required pursuant to subdivision (b) into the language
34principally used in any oral sales presentation or negotiation.

35

SEC. 12.  

Section 7541.1 of the Business and Professions Code
36 is amended to read:

37

7541.1.  

(a) Notwithstanding any other law, experience for
38purposes of taking the examination for licensure as a private
39investigator shall be limited to those activities actually performed
40in connection with investigations, as described in Section 7521,
P18   1and only if those activities are performed by persons who are
2employed or managed in the following capacities:

3(1) Sworn law enforcement officers possessing powers of arrest
4and employed by agencies in the federal, state, or local government.

5(2) Military police of the Armed Forces of the United States or
6the National Guard.

7(3) An insurance adjuster or its employees subject to Chapter
81 (commencing with Section 14000) of Division 5 of the Insurance
9Code.

10(4) Persons employed by a private investigator who are duly
11licensed in accordance with this chapter, or managed by a qualified
12manager in accordance with Section 7536.

13(5) Persons employed by repossessors duly licensed in
14accordance with Chapter 11 (commencing with Section 7500),
15only to the extent that those persons are routinely and regularly
16engaged in the location of debtors or the location of personal
17property using methods commonly known as “skip tracing.” For
18purposes of this section, only that experience acquired in skip
19tracing shall be credited toward qualification to take the
20examination.

21(6) Persons duly trained and certified as an arson investigator
22and employed by a public agency engaged in fire suppression.

23(7) Persons trained as investigators and employed by a public
24defender to conduct investigations.

25(b) For purposes of Section 7541, persons possessing an
26associate of arts degree in police science, criminal law or justice
27from an accredited college shall be credited with 1,000 hours of
28experience in investigative activities.

29(c) The following activities shall not be deemed to constitute
30acts of investigation for purposes of experience toward licensure:

31(1) The serving of legal process or other documents.

32(2) Activities relating to the search for heirs or similar searches
33which involve only a search of public records or other reference
34sources in the public domain.

35(3) The transportation or custodial attendance of persons in the
36physical custody of a law enforcement agency.

37(4) The provision of bailiff or other security services to a court
38of law.

39(5) The collection or attempted collection of debts by telephone
40or written solicitation after the debtor has been located.

P19   1(6) The repossession or attempted repossession of personal
2property after that property has been located and identified.

3(d) If the activities of employment of an applicant include those
4which qualify as bona fide experience as stated in this section as
5well as those which do not qualify, the director may, by delegation
6to the bureau, determine and apportion that percentage of
7experience for which an applicant is entitled to credit.

8

SEC. 13.  

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

10

7685.  

(a) (1) Every funeral director shall provide to any
11person, upon beginning discussion of prices or of the funeral goods
12and services offered, a written or printed list containing, but not
13necessarily limited to, the price for professional services offered,
14that may include the funeral director’s services, the preparation of
15the body, the use of facilities, and the use of automotive equipment.
16All services included in this price or prices shall be enumerated.
17The funeral director shall also provide a statement on that list that
18gives the price range for all caskets offered for sale.

19(2) The list shall also include a statement indicating that the
20survivor of the deceased who is handling the funeral arrangements,
21or the responsible party, is entitled to receive, before the drafting
22of any contract, a copy of any preneed agreement that has been
23signed and paid for, in full or in part, by or on behalf of the
24deceased, and that is in the possession of the funeral establishment.

25(3) The funeral director shall also provide a written statement
26or list that, at a minimum, specifically identifies a particular casket
27or caskets by price and by thickness of metal, or type of wood, or
28other construction, interior and color, in addition to other casket
29identification requirements under Part 453 of Title 16 of the Code
30of Federal Regulations and any subsequent version of this
31regulation, when a request for specific information on a casket or
32caskets is made in person by an individual. Prices of caskets and
33other identifying features such as thickness of metal, or type of
34wood, or other construction, interior and color, in addition to other
35casket identification requirements required to be given over the
36telephone by Part 453 of Title 16 of the Code of Federal
37Regulations and any subsequent version of this regulation, shall
38be provided over the telephone, if requested.

39(b) (1) Each licensed funeral establishment that maintains an
40Internet Web site shall post on its Internet Web site the list of
P20   1funeral goods and services that are required to be included in the
2establishment’s general price list, pursuant to federal rule, and a
3statement that the general price list is available upon request.

4(2) Information posted pursuant to paragraph (1) shall be
5provided by a link from the Internet Web site homepage with a
6word or combination of words, including, but not limited to,
7“goods,” “merchandise,” “products,” or “services.”

8(3) An establishment that posts on its Internet Web site
9homepage the words “price information” or a similar phrase that
10includes the word “price,” with a link that leads to the
11establishment’s general price list, need not comply with paragraphs
12(1) or (2).

13(4) This subdivision shall not be construed to affect an
14establishment’s obligations under federal or state law effective
15before January 1, 2013.

16(5) This subdivision shall become operative on January 1, 2013.

17

SEC. 14.  

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

19

7818.  

The board, pursuant to the provisions contained in
20Chapter 3.5 (commencing with Section 11340) of Part 1 of Division
213 of Title 2 of the Government Code, may adopt, amend, or repeal
22rules and regulations to carry out this chapter.

23

SEC. 15.  

Section 19351 of the Business and Professions Code
24 is amended to read:

25

19351.  

(a) The Medical Marijuana Regulation and Safety Act
26Fund is hereby established within the State Treasury. Moneys in
27the fund shall be available upon appropriation by the Legislature.
28Notwithstanding Section 16305.7 of the Government Code, the
29fund shall include any interest and dividends earned on the moneys
30in the fund.

31(b) (1) Funds for the establishment and support of the regulatory
32activities pursuant to this chapter shall be advanced as a General
33Fund or special fund loan, and shall be repaid by the initial
34proceeds from fees collected pursuant to this chapter or any rule
35or regulation adopted pursuant to this chapter, by January 1, 2022.
36Should the initial proceeds from fees not be sufficient to repay the
37loan, moneys from the Medical Marijuana Fines and Penalties
38Account shall be made available to the bureau, by appropriation
39of the Legislature, to repay the loan.

P21   1(2) Funds advanced pursuant to this subdivision shall be
2appropriated to the bureau, which shall distribute the moneys to
3the appropriate licensing authorities, as necessary to implement
4this chapter.

5(3) The Director of Finance may provide an initial operating
6loan from the General Fund to the Medical Marijuana Regulation
7and Safety Act Fund that does not exceed ten million dollars
8($10,000,000).

9(c) Except as otherwise provided, all moneys collected pursuant
10to this chapter as a result of fines or penalties imposed under this
11chapter shall be deposited directly into the Medical Marijuana
12Fines and Penalties Account, which is hereby established within
13the fund, and shall be available, upon appropriation by the
14Legislature to the bureau, for the purpose of funding the
15enforcement grant program pursuant to subdivision (d).

16(d) (1) The bureau shall establish a grant program to allocate
17moneys from the Medical Marijuana Fines and Penalties Account
18to state and local entities for the following purposes:

19(A) To assist with medical cannabis regulation and the
20enforcement of this chapter and other state and local laws
21applicable to cannabis activities.

22(B) For allocation to state and local agencies and law
23enforcement to remedy the environmental impacts of cannabis
24cultivation.

25(2) The costs of the grant program under this subdivision shall,
26upon appropriation by the Legislature, be paid for with moneys in
27the Medical Marijuana Fines and Penalties Account.

28(3) The grant program established by this subdivision shall only
29be implemented after the loan specified in this section is repaid.

30

SEC. 16.  

Section 19861 of the Business and Professions Code
31 is amended to read:

32

19861.  

(a) Notwithstanding subdivision (j) of Section 19801,
33the commission shall not deny a license to a gambling
34establishment solely because it is not open to the public, if all of
35the following are true:

36(1) The gambling establishment is situated in a local jurisdiction
37that has an ordinance allowing only private clubs, the gambling
38establishment was in operation as a private club under that
39ordinance on December 31, 1997, and it met all applicable state
40and local gaming registration requirements.

P22   1(2) The gambling establishment consists of no more than five
2gaming tables.

3(3) Video recordings of the entrance to the gambling room or
4rooms and all tables situated therein are made during all hours of
5operation by means of closed-circuit television cameras, and these
6recordings are retained for a period of 30 days and are made
7available for review by the department upon request.

8(4) The gambling establishment is open to members of the
9private club and their spouses in accordance with membership
10criteria in effect as of December 31, 1997.

11(b) A gambling establishment meeting the criteria set forth in
12subdivision (a), in addition to the other requirements of this chapter,
13may be licensed to operate as a private club gambling establishment
14until November 30, 2003, or until the ownership or operation of
15the gambling establishment changes from the ownership or
16operation as of January 1, 1998, whichever occurs first. Operation
17of the gambling establishments after this date shall only be
18permitted if the local jurisdiction approves an ordinance, pursuant
19to Sections 19961 and 19962, authorizing the operation of gambling
20establishments that are open to the public. The commission shall
21adopt regulations implementing this section. Before the
22commission’s issuance of a license to a private club, the department
23shall ensure that the ownership of the gambling establishment has
24remained constant since January 1, 1998, and the operation of the
25gambling establishment has not been leased to a third party.

26

SEC. 17.  

Section 48a of the Civil Code is amended to read:

27

48a.  

(a) In any action for damages for the publication of a libel
28in a daily or weekly news publication, or of a slander by radio
29broadcast, plaintiff shall only recover special damages unless a
30correction is demanded and is not published or broadcast, as
31provided in this section. Plaintiff shall serve upon the publisher at
32the place of publication, or broadcaster at the place of broadcast,
33a written notice specifying the statements claimed to be libelous
34and demanding that those statements be corrected. The notice and
35demand must be served within 20 days after knowledge of the
36publication or broadcast of the statements claimed to be libelous.

37(b) If a correction is demanded within 20 days and is not
38published or broadcast in substantially as conspicuous a manner
39in the same daily or weekly news publication, or on the same
40broadcasting station as were the statements claimed to be libelous,
P23   1in a regular issue thereof published or broadcast within three weeks
2after service, plaintiff, if he or she pleads and proves notice,
3demand and failure to correct, and if his or her cause of action is
4maintained, may recover general, special, and exemplary damages.
5Exemplary damages shall not be recovered unless the plaintiff
6proves that defendant made the publication or broadcast with actual
7malice and then only in the discretion of the court or jury, and
8actual malice shall not be inferred or presumed from the publication
9or broadcast.

10(c) A correction published or broadcast in substantially as
11conspicuous a manner in the daily or weekly news publication, or
12on the broadcasting station as the statements claimed in the
13complaint to be libelous, before receipt of a demand for correction,
14shall be of the same force and effect as though the correction had
15been published or broadcast within three weeks after a demand
16for correction.

17(d) As used in this section, the following definitions shall apply:

18(1) “General damages” means damages for loss of reputation,
19shame, mortification, and hurt feelings.

20(2) “Special damages” means all damages that plaintiff alleges
21and proves that he or she has suffered in respect to his or her
22property, business, trade, profession, or occupation, including the
23amounts of money the plaintiff alleges and proves he or she has
24expended as a result of the alleged libel, and no other.

25(3) “Exemplary damages” means damages that may in the
26discretion of the court or jury be recovered in addition to general
27and special damages for the sake of example and by way of
28punishing a defendant who has made the publication or broadcast
29with actual malice.

30(4) “Actual malice” means that state of mind arising from hatred
31or ill will toward the plaintiff; provided, however, that a state of
32mind occasioned by a good faith belief on the part of the defendant
33in the truth of the libelous publication or broadcast at the time it
34is published or broadcast shall not constitute actual malice.

35(5) “Daily or weekly news publication” means a publication,
36either in print or electronic form, that contains news on matters of
37public concern and that publishes at least once a week.

38

SEC. 18.  

Section 52.5 of the Civil Code is amended to read:

39

52.5.  

(a) A victim of human trafficking, as defined in Section
40236.1 of the Penal Code, may bring a civil action for actual
P24   1damages, compensatory damages, punitive damages, injunctive
2relief, any combination of those, or any other appropriate relief.
3A prevailing plaintiff may also be awarded attorney’s fees and
4costs.

5(b) In addition to the remedies specified in this section, in an
6action under subdivision (a), the plaintiff may be awarded up to
7three times his or her actual damages or ten thousand dollars
8($10,000), whichever is greater. In addition, punitive damages
9may be awarded upon proof of the defendant’s malice, oppression,
10fraud, or duress in committing the act of human trafficking.

11(c) An action brought pursuant to this section shall be
12commenced within seven years of the date on which the trafficking
13victim was freed from the trafficking situation or, if the victim was
14a minor when the act of human trafficking against the victim
15occurred, within 10 years after the date the plaintiff attains the age
16of majority.

17(d) If a person entitled to sue is under a disability at the time
18the cause of action accrues so that it is impossible or impracticable
19for him or her to bring an action, the time of the disability is not
20part of the time limited for the commencement of the action.
21Disability will toll the running of the statute of limitations for this
22action.

23(1) Disability includes being a minor, lacking legal capacity to
24make decisions, imprisonment, or other incapacity or
25incompetence.

26(2) The statute of limitations shall not run against a plaintiff
27who is a minor or who lacks the legal competence to make
28decisions simply because a guardian ad litem has been appointed.
29A guardian ad litem’s failure to bring a plaintiff’s action within
30the applicable limitation period will not prejudice the plaintiff’s
31right to bring an action after his or her disability ceases.

32(3) A defendant is estopped from asserting a defense of the
33statute of limitations when the expiration of the statute is due to
34conduct by the defendant inducing the plaintiff to delay the filing
35of the action, or due to threats made by the defendant causing the
36plaintiff duress.

37(4) The suspension of the statute of limitations due to disability,
38lack of knowledge, or estoppel applies to all other related claims
39arising out of the trafficking situation.

P25   1(5) The running of the statute of limitations is postponed during
2the pendency of criminal proceedings against the victim.

3(e) The running of the statute of limitations may be suspended
4if a person entitled to sue could not have reasonably discovered
5the cause of action due to circumstances resulting from the
6trafficking situation, such as psychological trauma, cultural and
7linguistic isolation, and the inability to access services.

8(f) A prevailing plaintiff may also be awarded reasonable
9attorney’s fees and litigation costs including, but not limited to,
10expert witness fees and expenses as part of the costs.

11(g) Restitution paid by the defendant to the victim shall be
12credited against a judgment, award, or settlement obtained pursuant
13to an action under this section. A judgment, award, or settlement
14 obtained pursuant to an action under this section is subject to
15Section 13963 of the Government Code.

16(h) A civil action filed under this section shall be stayed during
17the pendency of any criminal action arising out of the same
18occurrence in which the claimant is the victim. As used in this
19section, a “criminal action” includes investigation and prosecution,
20and is pending until a final adjudication in the trial court or
21dismissal.

22

SEC. 19.  

Section 1770 of the Civil Code is amended to read:

23

1770.  

(a) The following unfair methods of competition and
24unfair or deceptive acts or practices undertaken by any person in
25a transaction intended to result or that results in the sale or lease
26of goods or services to any consumer are unlawful:

27(1) Passing off goods or services as those of another.

28(2) Misrepresenting the source, sponsorship, approval, or
29certification of goods or services.

30(3) Misrepresenting the affiliation, connection, or association
31with, or certification by, another.

32(4) Using deceptive representations or designations of
33geographic origin in connection with goods or services.

34(5) Representing that goods or services have sponsorship,
35approval, characteristics, ingredients, uses, benefits, or quantities
36that they do not have or that a person has a sponsorship, approval,
37status, affiliation, or connection that he or she does not have.

38(6) Representing that goods are original or new if they have
39deteriorated unreasonably or are altered, reconditioned, reclaimed,
40used, or secondhand.

P26   1(7) Representing that goods or services are of a particular
2standard, quality, or grade, or that goods are of a particular style
3or model, if they are of another.

4(8) Disparaging the goods, services, or business of another by
5false or misleading representation of fact.

6(9) Advertising goods or services with intent not to sell them
7as advertised.

8(10) Advertising goods or services with intent not to supply
9reasonably expectable demand, unless the advertisement discloses
10a limitation of quantity.

11(11) Advertising furniture without clearly indicating that it is
12unassembled if that is the case.

13(12) Advertising the price of unassembled furniture without
14clearly indicating the assembled price of that furniture if the same
15furniture is available assembled from the seller.

16(13) Making false or misleading statements of fact concerning
17reasons for, existence of, or amounts of, price reductions.

18(14) Representing that a transaction confers or involves rights,
19remedies, or obligations that it does not have or involve, or that
20are prohibited by law.

21(15) Representing that a part, replacement, or repair service is
22needed when it is not.

23(16) Representing that the subject of a transaction has been
24supplied in accordance with a previous representation when it has
25not.

26(17) Representing that the consumer will receive a rebate,
27discount, or other economic benefit, if the earning of the benefit
28is contingent on an event to occur subsequent to the consummation
29of the transaction.

30(18) Misrepresenting the authority of a salesperson,
31representative, or agent to negotiate the final terms of a transaction
32with a consumer.

33(19) Inserting an unconscionable provision in the contract.

34(20) Advertising that a product is being offered at a specific
35price plus a specific percentage of that price unless (A) the total
36price is set forth in the advertisement, which may include, but is
37not limited to, shelf tags, displays, and media advertising, in a size
38larger than any other price in that advertisement, and (B) the
39specific price plus a specific percentage of that price represents a
40markup from the seller’s costs or from the wholesale price of the
P27   1product. This subdivision shall not apply to in-store advertising
2by businesses that are open only to members or cooperative
3organizations organized pursuant to Division 3 (commencing with
4Section 12000) of Title 1 of the Corporations Code where more
5than 50 percent of purchases are made at the specific price set forth
6in the advertisement.

7(21) Selling or leasing goods in violation of Chapter 4
8(commencing with Section 1797.8) of Title 1.7.

9(22) (A) Disseminating an unsolicited prerecorded message by
10telephone without an unrecorded, natural voice first informing the
11person answering the telephone of the name of the caller or the
12organization being represented, and either the address or the
13telephone number of the caller, and without obtaining the consent
14of that person to listen to the prerecorded message.

15(B) This subdivision does not apply to a message disseminated
16to a business associate, customer, or other person having an
17established relationship with the person or organization making
18the call, to a call for the purpose of collecting an existing
19obligation, or to any call generated at the request of the recipient.

20(23) (A) The home solicitation, as defined in subdivision (h)
21of Section 1761, of a consumer who is a senior citizen where a
22loan is made encumbering the primary residence of that consumer
23for purposes of paying for home improvements and where the
24transaction is part of a pattern or practice in violation of either
25subsection (h) or (i) of Section 1639 of Title 15 of the United States
26Code or paragraphs (1), (2), and (4) of subdivision (a) of Section
27226.34 of Title 12 of the Code of Federal Regulations.

28(B) A third party shall not be liable under this subdivision unless
29(i) there was an agency relationship between the party who engaged
30in home solicitation and the third party, or (ii) the third party had
31actual knowledge of, or participated in, the unfair or deceptive
32transaction. A third party who is a holder in due course under a
33home solicitation transaction shall not be liable under this
34subdivision.

35(24) (A) Charging or receiving an unreasonable fee to prepare,
36aid, or advise any prospective applicant, applicant, or recipient in
37the procurement, maintenance, or securing of public social services.

38(B) For purposes of this paragraph, the following definitions
39shall apply:

P28   1(i) “Public social services” means those activities and functions
2of state and local government administered or supervised by the
3State Department of Health Care Services, the State Department
4of Public Health, or the State Department of Social Services, and
5involved in providing aid or services, or both, including health
6care services, and medical assistance, to those persons who,
7because of their economic circumstances or social condition, are
8in need of that aid or those services and may benefit from them.

9(ii) “Public social services” also includes activities and functions
10administered or supervised by the United States Department of
11Veterans Affairs or the California Department of Veterans Affairs
12involved in providing aid or services, or both, to veterans, including
13pension benefits.

14(iii) “Unreasonable fee” means a fee that is exorbitant and
15disproportionate to the services performed. Factors to be
16considered, if appropriate, in determining the reasonableness of a
17fee, are based on the circumstances existing at the time of the
18service and shall include, but not be limited to, all of the following:

19(I) The time and effort required.

20(II) The novelty and difficulty of the services.

21(III) The skill required to perform the services.

22(IV) The nature and length of the professional relationship.

23(V) The experience, reputation, and ability of the person
24providing the services.

25(C) This paragraph shall not apply to attorneys licensed to
26practice law in California, who are subject to the California Rules
27of Professional Conduct and to the mandatory fee arbitration
28provisions of Article 13 (commencing with Section 6200) of
29Chapter 4 of Division 3 of the Business and Professions Code,
30when the fees charged or received are for providing representation
31in administrative agency appeal proceedings or court proceedings
32for purposes of procuring, maintaining, or securing public social
33services on behalf of a person or group of persons.

34(25) (A) Advertising or promoting any event, presentation,
35seminar, workshop, or other public gathering regarding veterans’
36benefits or entitlements that does not include the following
37statement in the same type size and font as the term “veteran” or
38any variation of that term:

39(i) “I am not authorized to file an initial application for Veterans’
40Aid and Attendance benefits on your behalf, or to represent you
P29   1before the Board of Veterans’ Appeals within the United States
2Department of Veterans Affairs in any proceeding on any matter,
3including an application for such benefits. It would be illegal for
4me to accept a fee for preparing that application on your behalf.”
5The requirements of this clause do not apply to a person licensed
6to act as an agent or attorney in proceedings before the Agency of
7Original Jurisdiction and the Board of Veterans’ Appeals within
8the United States Department of Veterans Affairs when that person
9is offering those services at the advertised event.

10(ii) The statement in clause (i) shall also be disseminated, both
11orally and in writing, at the beginning of any event, presentation,
12seminar, workshop, or public gathering regarding veterans’ benefits
13or entitlements.

14(B) Advertising or promoting any event, presentation, seminar,
15workshop, or other public gathering regarding veterans’ benefits
16or entitlements that is not sponsored by, or affiliated with, the
17United States Department of Veterans Affairs, the California
18Department of Veterans Affairs, or any other congressionally
19chartered or recognized organization of honorably discharged
20members of the Armed Forces of the United States, or any of their
21auxiliaries that does not include the following statement, in the
22same type size and font as the term “veteran” or the variation of
23that term:


25“This event is not sponsored by, or affiliated with, the United
26States Department of Veterans Affairs, the California Department
27of Veterans Affairs, or any other congressionally chartered or
28recognized organization of honorably discharged members of the
29Armed Forces of the United States, or any of their auxiliaries.
30None of the insurance products promoted at this sales event are
31endorsed by those organizations, all of which offer free advice to
32veterans about how to qualify and apply for benefits.”


34(i) The statement in this subparagraph shall be disseminated,
35both orally and in writing, at the beginning of any event,
36presentation, seminar, workshop, or public gathering regarding
37veterans’ benefits or entitlements.

38(ii) The requirements of this subparagraph shall not apply in a
39case where the United States Department of Veterans Affairs, the
40California Department of Veterans Affairs, or other congressionally
P30   1chartered or recognized organization of honorably discharged
2members of the Armed Forces of the United States, or any of their
3auxiliaries have granted written permission to the advertiser or
4promoter for the use of its name, symbol, or insignia to advertise
5or promote the event, presentation, seminar, workshop, or other
6public gathering.

7(26) Advertising, offering for sale, or selling a financial product
8that is illegal under state or federal law, including any cash payment
9for the assignment to a third party of the consumer’s right to receive
10future pension or veteran’s benefits.

11(27) Representing that a product is made in California by using
12a Made in California label created pursuant to Section 12098.10
13of the Government Code, unless the product complies with Section
14 12098.10 of the Government Code.

15(b) (1) It is an unfair or deceptive act or practice for a mortgage
16broker or lender, directly or indirectly, to use a home improvement
17contractor to negotiate the terms of any loan that is secured,
18whether in whole or in part, by the residence of the borrower and
19that is used to finance a home improvement contract or any portion
20of a home improvement contract. For purposes of this subdivision,
21“mortgage broker or lender” includes a finance lender licensed
22pursuant to the California Finance Lenders Law (Division 9
23(commencing with Section 22000) of the Financial Code), a
24residential mortgage lender licensed pursuant to the California
25Residential Mortgage Lending Act (Division 20 (commencing
26with Section 50000) of the Financial Code), or a real estate broker
27licensed under the Real Estate Law (Division 4 (commencing with
28Section 10000) of the Business and Professions Code).

29(2) This section shall not be construed to either authorize or
30prohibit a home improvement contractor from referring a consumer
31to a mortgage broker or lender by this subdivision. However, a
32home improvement contractor may refer a consumer to a mortgage
33lender or broker if that referral does not violate Section 7157 of
34the Business and Professions Code or any other law. A mortgage
35lender or broker may purchase an executed home improvement
36contract if that purchase does not violate Section 7157 of the
37Business and Professions Code or any other law. Nothing in this
38paragraph shall have any effect on the application of Chapter 1
39(commencing with Section 1801) of Title 2 to a home improvement
40transaction or the financing of a home improvement transaction.

P31   1

SEC. 20.  

Section 1798.29 of the Civil Code is amended to
2read:

3

1798.29.  

(a) An agency that owns or licenses computerized
4data that includes personal information shall disclose any breach
5of the security of the system following discovery or notification
6of the breach in the security of the data to any resident of California
7whose unencrypted personal information was, or is reasonably
8believed to have been, acquired by an unauthorized person. The
9disclosure shall be made in the most expedient time possible and
10without unreasonable delay, consistent with the legitimate needs
11of law enforcement, as provided in subdivision (c), or any measures
12necessary to determine the scope of the breach and restore the
13reasonable integrity of the data system.

14(b) An agency that maintains computerized data that includes
15personal information that the agency does not own shall notify the
16owner or licensee of the information of any breach of the security
17of the data immediately following discovery, if the personal
18information was, or is reasonably believed to have been, acquired
19by an unauthorized person.

20(c) The notification required by this section may be delayed if
21a law enforcement agency determines that the notification will
22impede a criminal investigation. The notification required by this
23section shall be made after the law enforcement agency determines
24that it will not compromise the investigation.

25(d) An agency that is required to issue a security breach
26notification pursuant to this section shall meet all of the following
27requirements:

28(1) The security breach notification shall be written in plain
29language, shall be titled “Notice of Data Breach,” and shall present
30the information described in paragraph (2) under the following
31headings: “What Happened,” “What Information Was Involved,”
32“What We Are Doing,” “What You Can Do,” and “For More
33Information.” Additional information may be provided as a
34supplement to the notice.

35(A) The format of the notice shall be designed to call attention
36to the nature and significance of the information it contains.

37(B) The title and headings in the notice shall be clearly and
38conspicuously displayed.

39(C) The text of the notice and any other notice provided pursuant
40to this section shall be no smaller than 10-point type.

P32   1(D) For a written notice described in paragraph (1) of
2subdivision (i), use of the model security breach notification form
3prescribed below, or use of the headings described in this paragraph
4with the information described in paragraph (2), written in plain
5language, shall be deemed to be in compliance with this
6subdivision.


7

 

[NAME OF INSTITUTION / LOGO]     Date: [insert date]

NOTICE OF DATA BREACH



What Happened




 
 


What Information Was Involved




 


What We Are Doing




 


What You Can Do




 
 

Other Important Information

[insert other important information]










For More Information



Call [telephone number] or go to [Internet Web site]

P33  1213

 


14(E) For an electronic notice described in paragraph (2) of
15subdivision (i), use of the headings described in this paragraph
16with the information described in paragraph (2), written in plain
17language, shall be deemed to be in compliance with this
18subdivision.

19(2) The security breach notification described in paragraph (1)
20shall include, at a minimum, the following information:

21(A) The name and contact information of the reporting agency
22subject to this section.

23(B) A list of the types of personal information that were or are
24reasonably believed to have been the subject of a breach.

25(C) If the information is possible to determine at the time the
26notice is provided, any of the following:

27(i) The date of the breach.

28(ii) The estimated date of the breach.

29(iii) The date range within which the breach occurred.

30(D) The date of notice.

31(E) Whether the notification was delayed as a result of a law
32enforcement investigation, if that information is possible to
33determine at the time the notice is provided.

34(F) A general description of the breach incident, if that
35information is possible to determine at the time the notice is
36provided.

37(G) The toll-free telephone numbers and addresses of the major
38credit reporting agencies, if the breach exposed a social security
P34   1number or a driver’s license or California identification card
2number.

3(3) At the discretion of the agency, the security breach
4notification may also include any of the following:

5(A) Information about what the agency has done to protect
6individuals whose information has been breached.

7(B) Advice on steps that the person whose information has been
8breached may take to protect himself or herself.

9(e) An agency that is required to issue a security breach
10notification pursuant to this section to more than 500 California
11residents as a result of a single breach of the security system shall
12electronically submit a single sample copy of the security breach
13notification, excluding any personally identifiable information, to
14the Attorney General. A single sample copy of the security breach
15notification shall not be deemed to be within subdivision (f) of
16Section 6254 of the Government Code.

17(f) For purposes of this section, “breach of the security of the
18system” means unauthorized acquisition of computerized data that
19compromises the security, confidentiality, or integrity of personal
20information maintained by the agency. Good faith acquisition of
21personal information by an employee or agent of the agency for
22the purposes of the agency is not a breach of the security of the
23system, if the personal information is not used or subject to further
24unauthorized disclosure.

25(g) For purposes of this section, “personal information” means
26either of the following:

27(1) An individual’s first name or first initial and last name in
28combination with any one or more of the following data elements,
29if either the name or the data elements are not encrypted:

30(A) Social security number.

31(B) Driver’s license number or California identification card
32number.

33(C) Account number, credit or debit card number, in
34combination with any required security code, access code, or
35password that would permit access to an individual’s financial
36account.

37(D) Medical information.

38(E) Health insurance information.

P35   1(F) Information or data collected through the use or operation
2of an automated license plate recognition system, as defined in
3Section 1798.90.5.

4(2) A user name or email address, in combination with a
5password or security question and answer that would permit access
6to an online account.

7(h) (1) For purposes of this section, “personal information”
8does not include publicly available information that is lawfully
9made available to the general public from federal, state, or local
10government records.

11(2) For purposes of this section, “medical information” means
12any information regarding an individual’s medical history, mental
13or physical condition, or medical treatment or diagnosis by a health
14care professional.

15(3) For purposes of this section, “health insurance information”
16means an individual’s health insurance policy number or subscriber
17identification number, a unique identifier used by a health insurer
18to identify the individual, or any information in an individual’s
19application and claims history, including any appeals records.

20(4) For purposes of this section, “encrypted” means rendered
21unusable, unreadable, or indecipherable to an unauthorized person
22through a security technology or methodology generally accepted
23in the field of information security.

24(i) For purposes of this section, “notice” may be provided by
25one of the following methods:

26(1) Written notice.

27(2) Electronic notice, if the notice provided is consistent with
28the provisions regarding electronic records and signatures set forth
29in Section 7001 of Title 15 of the United States Code.

30(3) Substitute notice, if the agency demonstrates that the cost
31of providing notice would exceed two hundred fifty thousand
32dollars ($250,000), that the affected class of subject persons to be
33notified exceeds 500,000, or the agency does not have sufficient
34contact information. Substitute notice shall consist of all of the
35following:

36(A) Email notice when the agency has an email address for the
37subject persons.

38(B) Conspicuous posting, for a minimum of 30 days, of the
39notice on the agency’s Internet Web site, if the agency maintains
40one. For purposes of this subparagraph, conspicuous posting on
P36   1the agency’s Internet Web site means providing a link to the notice
2on the home page or first significant page after entering the Internet
3Web site that is in larger type than the surrounding text, in
4contrasting type, font, or color to the surrounding text of the same
5size, or set off from the surrounding text of the same size by
6symbols or other marks that call attention to the link.

7(C) Notification to major statewide media and the Office of
8Information Security within the Department of Technology.

9(4) In the case of a breach of the security of the system involving
10personal information defined in paragraph (2) of subdivision (g)
11for an online account, and no other personal information defined
12in paragraph (1) of subdivision (g), the agency may comply with
13this section by providing the security breach notification in
14electronic or other form that directs the person whose personal
15information has been breached to promptly change his or her
16password and security question or answer, as applicable, or to take
17other steps appropriate to protect the online account with the
18agency and all other online accounts for which the person uses the
19same user name or email address and password or security question
20or answer.

21(5) In the case of a breach of the security of the system involving
22personal information defined in paragraph (2) of subdivision (g)
23for login credentials of an email account furnished by the agency,
24the agency shall not comply with this section by providing the
25security breach notification to that email address, but may, instead,
26comply with this section by providing notice by another method
27described in this subdivision or by clear and conspicuous notice
28delivered to the resident online when the resident is connected to
29the online account from an Internet Protocol address or online
30location from which the agency knows the resident customarily
31accesses the account.

32(j) Notwithstanding subdivision (i), an agency that maintains
33its own notification procedures as part of an information security
34policy for the treatment of personal information and is otherwise
35consistent with the timing requirements of this part shall be deemed
36to be in compliance with the notification requirements of this
37section if it notifies subject persons in accordance with its policies
38in the event of a breach of security of the system.

39(k) Notwithstanding the exception specified in paragraph (4) of
40subdivision (b) of Section 1798.3, for purposes of this section,
P37   1“agency” includes a local agency, as defined in subdivision (a) of
2Section 6252 of the Government Code.

3

SEC. 21.  

Section 1798.82 of the Civil Code is amended to
4read:

5

1798.82.  

(a) A person or business that conducts business in
6California, and that owns or licenses computerized data that
7includes personal information, shall disclose a breach of the
8security of the system following discovery or notification of the
9breach in the security of the data to a resident of California whose
10unencrypted personal information was, or is reasonably believed
11to have been, acquired by an unauthorized person. The disclosure
12shall be made in the most expedient time possible and without
13unreasonable delay, consistent with the legitimate needs of law
14enforcement, as provided in subdivision (c), or any measures
15necessary to determine the scope of the breach and restore the
16reasonable integrity of the data system.

17(b) A person or business that maintains computerized data that
18includes personal information that the person or business does not
19own shall notify the owner or licensee of the information of the
20breach of the security of the data immediately following discovery,
21if the personal information was, or is reasonably believed to have
22been, acquired by an unauthorized person.

23(c) The notification required by this section may be delayed if
24a law enforcement agency determines that the notification will
25impede a criminal investigation. The notification required by this
26section shall be made promptly after the law enforcement agency
27determines that it will not compromise the investigation.

28(d) A person or business that is required to issue a security
29breach notification pursuant to this section shall meet all of the
30following requirements:

31(1) The security breach notification shall be written in plain
32language, shall be titled “Notice of Data Breach,” and shall present
33the information described in paragraph (2) under the following
34headings: “What Happened,” “What Information Was Involved,”
35“What We Are Doing,” “What You Can Do,” and “For More
36Information.” Additional information may be provided as a
37supplement to the notice.

38(A) The format of the notice shall be designed to call attention
39to the nature and significance of the information it contains.

P38   1(B) The title and headings in the notice shall be clearly and
2conspicuously displayed.

3(C) The text of the notice and any other notice provided pursuant
4to this section shall be no smaller than 10-point type.

5(D) For a written notice described in paragraph (1) of
6 subdivision (j), use of the model security breach notification form
7prescribed below or use of the headings described in this paragraph
8with the information described in paragraph (2), written in plain
9language, shall be deemed to be in compliance with this
10subdivision.


11

 

[NAME OF INSTITUTION / LOGO]     Date: [insert date]

NOTICE OF DATA BREACH



What Happened




 
 


What Information Was Involved




 


What We Are Doing




 


What You Can Do




 
 

Other Important Information

[insert other important information]










For More Information



Call [telephone number] or go to [Internet Web site]

P39  1617

 


18(E) For an electronic notice described in paragraph (2) of
19subdivision (j), use of the headings described in this paragraph
20with the information described in paragraph (2), written in plain
21language, shall be deemed to be in compliance with this
22subdivision.

23(2) The security breach notification described in paragraph (1)
24shall include, at a minimum, the following information:

25(A) The name and contact information of the reporting person
26or business subject to this section.

27(B) A list of the types of personal information that were or are
28reasonably believed to have been the subject of a breach.

29(C) If the information is possible to determine at the time the
30notice is provided, any of the following:

31(i) The date of the breach.

32(ii) The estimated date of the breach.

33(iii) The date range within which the breach occurred.

34(D) The date of notice.

35(E) Whether notification was delayed as a result of a law
36enforcement investigation, if that information is possible to
37determine at the time the notice is provided.

P40   1(F) A general description of the breach incident, if that
2information is possible to determine at the time the notice is
3provided.

4(G) The toll-free telephone numbers and addresses of the major
5credit reporting agencies if the breach exposed a social security
6number or a driver’s license or California identification card
7number.

8(H) If the person or business providing the notification was the
9source of the breach, an offer to provide appropriate identity theft
10prevention and mitigation services, if any, shall be provided at no
11cost to the affected person for not less than 12 months along with
12all information necessary to take advantage of the offer to any
13person whose information was or may have been breached if the
14breach exposed or may have exposed personal information defined
15in subparagraphs (A) and (B) of paragraph (1) of subdivision (h).

16(3) At the discretion of the person or business, the security
17breach notification may also include any of the following:

18(A) Information about what the person or business has done to
19protect individuals whose information has been breached.

20(B) Advice on steps that the person whose information has been
21breached may take to protect himself or herself.

22(e) A covered entity under the federal Health Insurance
23Portability and Accountability Act of 1996 (42 U.S.C. Sec. 1320d
24et seq.) will be deemed to have complied with the notice
25requirements in subdivision (d) if it has complied completely with
26Section 13402(f) of the federal Health Information Technology
27for Economic and Clinical Health Act (Public Law 111-5). This
28subdivision shall not be construed to exempt a covered entity from
29any other provision of this section.

30(f) A person or business that is required to issue a security breach
31notification pursuant to this section to more than 500 California
32residents as a result of a single breach of the security system shall
33 electronically submit a single sample copy of the security breach
34notification, excluding any personally identifiable information, to
35the Attorney General. A single sample copy of the security breach
36notification shall not be deemed to be within subdivision (f) of
37Section 6254 of the Government Code.

38(g) For purposes of this section, “breach of the security of the
39system” means unauthorized acquisition of computerized data that
40compromises the security, confidentiality, or integrity of personal
P41   1information maintained by the person or business. Good faith
2acquisition of personal information by an employee or agent of
3the person or business for the purposes of the person or business
4is not a breach of the security of the system, if the personal
5information is not used or subject to further unauthorized
6disclosure.

7(h) For purposes of this section, “personal information” means
8either of the following:

9(1) An individual’s first name or first initial and last name in
10combination with any one or more of the following data elements,
11if either the name or the data elements are not encrypted:

12(A) Social security number.

13(B) Driver’s license number or California identification card
14number.

15(C) Account number, credit or debit card number, in
16combination with any required security code, access code, or
17password that would permit access to an individual’s financial
18account.

19(D) Medical information.

20(E) Health insurance information.

21(F) Information or data collected through the use or operation
22of an automated license plate recognition system, as defined in
23Section 1798.90.5.

24(2) A user name or email address, in combination with a
25password or security question and answer that would permit access
26to an online account.

27(i) (1) For purposes of this section, “personal information” does
28not include publicly available information that is lawfully made
29available to the general public from federal, state, or local
30government records.

31(2) For purposes of this section, “medical information” means
32any information regarding an individual’s medical history, mental
33or physical condition, or medical treatment or diagnosis by a health
34care professional.

35(3) For purposes of this section, “health insurance information”
36means an individual’s health insurance policy number or subscriber
37identification number, a unique identifier used by a health insurer
38to identify the individual, or information in an individual’s
39application and claims history, including any appeals records.

P42   1(4) For purposes of this section, “encrypted” means rendered
2unusable, unreadable, or indecipherable to an unauthorized person
3through a security technology or methodology generally accepted
4in the field of information security.

5(j) For purposes of this section, “notice” may be provided by
6one of the following methods:

7(1) Written notice.

8(2) Electronic notice, if the notice provided is consistent with
9the provisions regarding electronic records and signatures set forth
10in Section 7001 of Title 15 of the United States Code.

11(3) Substitute notice, if the person or business demonstrates that
12the cost of providing notice would exceed two hundred fifty
13thousand dollars ($250,000), that the affected class of subject
14persons to be notified exceeds 500,000, or the person or business
15does not have sufficient contact information. Substitute notice
16shall consist of all of the following:

17(A) Email notice when the person or business has an email
18address for the subject persons.

19(B) Conspicuous posting, for a minimum of 30 days, of the
20notice on the Internet Web site of the person or business, if the
21person or business maintains one. For purposes of this
22subparagraph, conspicuous posting on the person’s or business’s
23Internet Web site means providing a link to the notice on the home
24page or first significant page after entering the Internet Web site
25that is in larger type than the surrounding text, in contrasting type,
26font, or color to the surrounding text of the same size, or set off
27from the surrounding text of the same size by symbols or other
28marks that call attention to the link.

29(C) Notification to major statewide media.

30(4) In the case of a breach of the security of the system involving
31personal information defined in paragraph (2) of subdivision (h)
32for an online account, and no other personal information defined
33in paragraph (1) of subdivision (h), the person or business may
34comply with this section by providing the security breach
35notification in electronic or other form that directs the person whose
36personal information has been breached promptly to change his
37or her password and security question or answer, as applicable, or
38to take other steps appropriate to protect the online account with
39the person or business and all other online accounts for which the
40person whose personal information has been breached uses the
P43   1same user name or email address and password or security question
2or answer.

3(5) In the case of a breach of the security of the system involving
4personal information defined in paragraph (2) of subdivision (h)
5for login credentials of an email account furnished by the person
6or business, the person or business shall not comply with this
7section by providing the security breach notification to that email
8address, but may, instead, comply with this section by providing
9notice by another method described in this subdivision or by clear
10and conspicuous notice delivered to the resident online if the
11resident is connected to the online account from an Internet
12Protocol address or online location from which the person or
13business knows the resident customarily accesses the account.

14(k) Notwithstanding subdivision (j), a person or business that
15maintains its own notification procedures as part of an information
16security policy for the treatment of personal information and is
17otherwise consistent with the timing requirements of this part, shall
18be deemed to be in compliance with the notification requirements
19of this section if the person or business notifies subject persons in
20accordance with its policies in the event of a breach of security of
21the system.

22

SEC. 22.  

Section 437c of the Code of Civil Procedure is
23amended to read:

24

437c.  

(a) (1) A party may move for summary judgment in an
25action or proceeding if it is contended that the action has no merit
26or that there is no defense to the action or proceeding. The motion
27may be made at any time after 60 days have elapsed since the
28general appearance in the action or proceeding of each party against
29whom the motion is directed or at any earlier time after the general
30appearance that the court, with or without notice and upon good
31cause shown, may direct.

32(2) Notice of the motion and supporting papers shall be served
33on all other parties to the action at least 75 days before the time
34appointed for hearing. If the notice is served by mail, the required
3575-day period of notice shall be increased by 5 days if the place
36of address is within the State of California, 10 days if the place of
37address is outside the State of California but within the United
38States, and 20 days if the place of address is outside the United
39States. If the notice is served by facsimile transmission, express
40mail, or another method of delivery providing for overnight
P44   1delivery, the required 75-day period of notice shall be increased
2by two court days.

3(3) The motion shall be heard no later than 30 days before the
4date of trial, unless the court for good cause orders otherwise. The
5filing of the motion shall not extend the time within which a party
6must otherwise file a responsive pleading.

7(b) (1) The motion shall be supported by affidavits, declarations,
8admissions, answers to interrogatories, depositions, and matters
9of which judicial notice shall or may be taken. The supporting
10papers shall include a separate statement setting forth plainly and
11concisely all material facts that the moving party contends are
12undisputed. Each of the material facts stated shall be followed by
13a reference to the supporting evidence. The failure to comply with
14this requirement of a separate statement may in the court’s
15discretion constitute a sufficient ground for denying the motion.

16(2) An opposition to the motion shall be served and filed not
17less than 14 days preceding the noticed or continued date of
18hearing, unless the court for good cause orders otherwise. The
19opposition, where appropriate, shall consist of affidavits,
20declarations, admissions, answers to interrogatories, depositions,
21and matters of which judicial notice shall or may be taken.

22(3) The opposition papers shall include a separate statement
23that responds to each of the material facts contended by the moving
24party to be undisputed, indicating if the opposing party agrees or
25disagrees that those facts are undisputed. The statement also shall
26set forth plainly and concisely any other material facts the opposing
27party contends are disputed. Each material fact contended by the
28opposing party to be disputed shall be followed by a reference to
29the supporting evidence. Failure to comply with this requirement
30of a separate statement may constitute a sufficient ground, in the
31court’s discretion, for granting the motion.

32(4) A reply to the opposition shall be served and filed by the
33moving party not less than five days preceding the noticed or
34continued date of hearing, unless the court for good cause orders
35otherwise.

36(5) Evidentiary objections not made at the hearing shall be
37deemed waived.

38(6) Except for subdivision (c) of Section 1005 relating to the
39 method of service of opposition and reply papers, Sections 1005
P45   1and 1013, extending the time within which a right may be exercised
2or an act may be done, do not apply to this section.

3(7) An incorporation by reference of a matter in the court’s file
4shall set forth with specificity the exact matter to which reference
5is being made and shall not incorporate the entire file.

6(c) The motion for summary judgment shall be granted if all
7the papers submitted show that there is no triable issue as to any
8material fact and that the moving party is entitled to a judgment
9as a matter of law. In determining if the papers show that there is
10no triable issue as to any material fact, the court shall consider all
11of the evidence set forth in the papers, except the evidence to which
12objections have been made and sustained by the court, and all
13inferences reasonably deducible from the evidence, except
14summary judgment shall not be granted by the court based on
15inferences reasonably deducible from the evidence if contradicted
16by other inferences or evidence that raise a triable issue as to any
17material fact.

18(d) Supporting and opposing affidavits or declarations shall be
19made by a person on personal knowledge, shall set forth admissible
20evidence, and shall show affirmatively that the affiant is competent
21to testify to the matters stated in the affidavits or declarations. An
22objection based on the failure to comply with the requirements of
23this subdivision, if not made at the hearing, shall be deemed
24waived.

25(e) If a party is otherwise entitled to summary judgment pursuant
26to this section, summary judgment shall not be denied on grounds
27of credibility or for want of cross-examination of witnesses
28furnishing affidavits or declarations in support of the summary
29judgment, except that summary judgment may be denied in the
30discretion of the court if the only proof of a material fact offered
31in support of the summary judgment is an affidavit or declaration
32made by an individual who was the sole witness to that fact; or if
33a material fact is an individual’s state of mind, or lack thereof, and
34that fact is sought to be established solely by the individual’s
35affirmation thereof.

36(f) (1) A party may move for summary adjudication as to one
37or more causes of action within an action, one or more affirmative
38defenses, one or more claims for damages, or one or more issues
39of duty, if the party contends that the cause of action has no merit,
40that there is no affirmative defense to the cause of action, that there
P46   1is no merit to an affirmative defense as to any cause of action, that
2there is no merit to a claim for damages, as specified in Section
33294 of the Civil Code, or that one or more defendants either owed
4or did not owe a duty to the plaintiff or plaintiffs. A motion for
5summary adjudication shall be granted only if it completely
6disposes of a cause of action, an affirmative defense, a claim for
7damages, or an issue of duty.

8(2) A motion for summary adjudication may be made by itself
9or as an alternative to a motion for summary judgment and shall
10proceed in all procedural respects as a motion for summary
11judgment. A party shall not move for summary judgment based
12on issues asserted in a prior motion for summary adjudication and
13denied by the court unless that party establishes, to the satisfaction
14of the court, newly discovered facts or circumstances or a change
15of law supporting the issues reasserted in the summary judgment
16motion.

17(g) Upon the denial of a motion for summary judgment on the
18ground that there is a triable issue as to one or more material facts,
19the court shall, by written or oral order, specify one or more
20material facts raised by the motion that the court has determined
21there exists a triable controversy. This determination shall
22specifically refer to the evidence proffered in support of and in
23opposition to the motion that indicates that a triable controversy
24exists. Upon the grant of a motion for summary judgment on the
25ground that there is no triable issue of material fact, the court shall,
26by written or oral order, specify the reasons for its determination.
27The order shall specifically refer to the evidence proffered in
28support of and, if applicable, in opposition to the motion that
29indicates no triable issue exists. The court shall also state its reasons
30for any other determination. The court shall record its determination
31by court reporter or written order.

32(h) If it appears from the affidavits submitted in opposition to
33a motion for summary judgment or summary adjudication, or both,
34that facts essential to justify opposition may exist but cannot, for
35reasons stated, be presented, the court shall deny the motion, order
36a continuance to permit affidavits to be obtained or discovery to
37be had, or make any other order as may be just. The application
38to continue the motion to obtain necessary discovery may also be
39made by ex parte motion at any time on or before the date the
40opposition response to the motion is due.

P47   1(i) If, after granting a continuance to allow specified additional
2discovery, the court determines that the party seeking summary
3judgment has unreasonably failed to allow the discovery to be
4conducted, the court shall grant a continuance to permit the
5discovery to go forward or deny the motion for summary judgment
6or summary adjudication. This section does not affect or limit the
7ability of a party to compel discovery under the Civil Discovery
8Act (Title 4 (commencing with Section 2016.010) of Part 4).

9(j) If the court determines at any time that an affidavit was
10presented in bad faith or solely for the purpose of delay, the court
11shall order the party who presented the affidavit to pay the other
12party the amount of the reasonable expenses the filing of the
13affidavit caused the other party to incur. Sanctions shall not be
14imposed pursuant to this subdivision except on notice contained
15in a party’s papers or on the court’s own noticed motion, and after
16an opportunity to be heard.

17(k) Unless a separate judgment may properly be awarded in the
18action, a final judgment shall not be entered on a motion for
19summary judgment before the termination of the action, but the
20final judgment shall, in addition to any matters determined in the
21action, award judgment as established by the summary proceeding
22provided for in this section.

23(l) In an action arising out of an injury to the person or to
24property, if a motion for summary judgment is granted on the basis
25that the defendant was without fault, no other defendant during
26trial, over plaintiff’s objection, may attempt to attribute fault to,
27or comment on, the absence or involvement of the defendant who
28was granted the motion.

29(m) (1) A summary judgment entered under this section is an
30appealable judgment as in other cases. Upon entry of an order
31pursuant to this section, except the entry of summary judgment, a
32party may, within 20 days after service upon him or her of a written
33notice of entry of the order, petition an appropriate reviewing court
34for a peremptory writ. If the notice is served by mail, the initial
35period within which to file the petition shall be increased by five
36days if the place of address is within the State of California, 10
37days if the place of address is outside the State of California but
38within the United States, and 20 days if the place of address is
39outside the United States. If the notice is served by facsimile
40transmission, express mail, or another method of delivery providing
P48   1for overnight delivery, the initial period within which to file the
2petition shall be increased by two court days. The superior court
3may, for good cause, and before the expiration of the initial period,
4extend the time for one additional period not to exceed 10 days.

5(2) Before a reviewing court affirms an order granting summary
6judgment or summary adjudication on a ground not relied upon
7by the trial court, the reviewing court shall afford the parties an
8opportunity to present their views on the issue by submitting
9supplemental briefs. The supplemental briefs may include an
10argument that additional evidence relating to that ground exists,
11but the party has not had an adequate opportunity to present the
12evidence or to conduct discovery on the issue. The court may
13reverse or remand based upon the supplemental briefs to allow the
14parties to present additional evidence or to conduct discovery on
15the issue. If the court fails to allow supplemental briefs, a rehearing
16shall be ordered upon timely petition of a party.

17(n) (1) If a motion for summary adjudication is granted, at the
18trial of the action, the cause or causes of action within the action,
19affirmative defense or defenses, claim for damages, or issue or
20issues of duty as to the motion that has been granted shall be
21deemed to be established and the action shall proceed as to the
22cause or causes of action, affirmative defense or defenses, claim
23for damages, or issue or issues of duty remaining.

24(2) In the trial of the action, the fact that a motion for summary
25adjudication is granted as to one or more causes of action,
26 affirmative defenses, claims for damages, or issues of duty within
27the action shall not bar any cause of action, affirmative defense,
28claim for damages, or issue of duty as to which summary
29adjudication was either not sought or denied.

30(3) In the trial of an action, neither a party, a witness, nor the
31court shall comment to a jury upon the grant or denial of a motion
32for summary adjudication.

33(o) A cause of action has no merit if either of the following
34exists:

35(1) One or more of the elements of the cause of action cannot
36be separately established, even if that element is separately pleaded.

37(2) A defendant establishes an affirmative defense to that cause
38of action.

39(p) For purposes of motions for summary judgment and
40summary adjudication:

P49   1(1) A plaintiff or cross-complainant has met his or her burden
2of showing that there is no defense to a cause of action if that party
3has proved each element of the cause of action entitling the party
4to judgment on the cause of action. Once the plaintiff or
5cross-complainant has met that burden, the burden shifts to the
6defendant or cross-defendant to show that a triable issue of one or
7more material facts exists as to the cause of action or a defense
8thereto. The defendant or cross-defendant shall not rely upon the
9allegations or denials of its pleadings to show that a triable issue
10of material fact exists but, instead, shall set forth the specific facts
11showing that a triable issue of material fact exists as to the cause
12of action or a defense thereto.

13(2) A defendant or cross-defendant has met his or her burden
14of showing that a cause of action has no merit if the party has
15shown that one or more elements of the cause of action, even if
16not separately pleaded, cannot be established, or that there is a
17complete defense to the cause of action. Once the defendant or
18cross-defendant has met that burden, the burden shifts to the
19plaintiff or cross-complainant to show that a triable issue of one
20or more material facts exists as to the cause of action or a defense
21thereto. The plaintiff or cross-complainant shall not rely upon the
22allegations or denials of its pleadings to show that a triable issue
23of material fact exists but, instead, shall set forth the specific facts
24showing that a triable issue of material fact exists as to the cause
25of action or a defense thereto.

26(q) In granting or denying a motion for summary judgment or
27summary adjudication, the court need rule only on those objections
28to evidence that it deems material to its disposition of the motion.
29 Objections to evidence that are not ruled on for purposes of the
30motion shall be preserved for appellate review.

31(r) This section does not extend the period for trial provided by
32Section 1170.5.

33(s) Subdivisions (a) and (b) do not apply to actions brought
34pursuant to Chapter 4 (commencing with Section 1159) of Title 3
35of Part 3.

36(t) Notwithstanding subdivision (f), a party may move for
37summary adjudication of a legal issue or a claim for damages other
38than punitive damages that does not completely dispose of a cause
39of action, affirmative defense, or issue of duty pursuant to this
40subdivision.

P50   1(1) (A) Before filing a motion pursuant to this subdivision, the
2parties whose claims or defenses are put at issue by the motion
3shall submit to the court both of the following:

4(i) A joint stipulation stating the issue or issues to be adjudicated.

5(ii) A declaration from each stipulating party that the motion
6will further the interest of judicial economy by decreasing trial
7time or significantly increasing the likelihood of settlement.

8(B) The joint stipulation shall be served on any party to the civil
9action who is not also a party to the motion.

10(2) Within 15 days of receipt of the stipulation and declarations,
11unless the court has good cause for extending the time, the court
12shall notify the stipulating parties if the motion may be filed. In
13making this determination, the court may consider objections by
14a nonstipulating party made within 10 days of the submission of
15the stipulation and declarations.

16(3) If the court elects not to allow the filing of the motion, the
17stipulating parties may request, and upon request the court shall
18conduct, an informal conference with the stipulating parties to
19permit further evaluation of the proposed stipulation. The
20stipulating parties shall not file additional papers in support of the
21motion.

22(4) (A) A motion for summary adjudication made pursuant to
23this subdivision shall contain a statement in the notice of motion
24that reads substantially similar to the following: “This motion is
25made pursuant to subdivision (t) of Section 437c of the Code of
26Civil Procedure. The parties to this motion stipulate that the court
27shall hear this motion and that the resolution of this motion will
28further the interest of judicial economy by decreasing trial time or
29significantly increasing the likelihood of settlement.”

30(B) The notice of motion shall be signed by counsel for all
31parties, and by those parties in propria persona, to the motion.

32(5) A motion filed pursuant to this subdivision may be made by
33itself or as an alternative to a motion for summary judgment and
34shall proceed in all procedural respects as a motion for summary
35judgment.

36(u) For purposes of this section, a change in law does not include
37a later enacted statute without retroactive application.

38

SEC. 23.  

Section 472a of the Code of Civil Procedure, as added
39by Section 5 of Chapter 418 of the Statutes of 2015, is amended
40to read:

P51   1

472a.  

(a) A demurrer is not waived by an answer filed at the
2same time.

3(b) Except as otherwise provided by rule adopted by the Judicial
4Council, if a demurrer to a complaint or to a cross-complaint is
5overruled and an answer is not filed, the court shall allow an answer
6to be filed upon such terms as may be just. If a demurrer to the
7answer is overruled, the action shall proceed as if no demurrer had
8been interposed, and the facts alleged in the answer shall be
9considered as denied to the extent mentioned in Section 431.20.

10(c) If a demurrer is sustained, the court may grant leave to amend
11the pleading upon any terms as may be just and shall fix the time
12within which the amendment or amended pleading shall be filed.
13If a demurrer is stricken pursuant to Section 436 and no answer is
14filed, the court shall allow an answer to be filed on terms that are
15just.

16(d) If a motion to strike is granted pursuant to Section 436, the
17court may order that an amendment or amended pleading be filed
18upon terms it deems proper. If a motion to strike a complaint or
19cross-complaint, or portion thereof, is denied, the court shall allow
20the party filing the motion to strike to file an answer.

21(e) If a motion to dismiss an action pursuant to Article 2
22(commencing with Section 583.210) of Chapter 1.5 of Title 8 is
23denied, the court shall allow a pleading to be filed.

24(f) This section shall become operative on January 1, 2021.

25

SEC. 24.  

Section 527.6 of the Code of Civil Procedure is
26amended to read:

27

527.6.  

(a) (1) A person who has suffered harassment as
28defined in subdivision (b) may seek a temporary restraining order
29and an order after hearing prohibiting harassment as provided in
30this section.

31(2) A minor, under 12 years of age, accompanied by a duly
32appointed and acting guardian ad litem, shall be permitted to appear
33in court without counsel for the limited purpose of requesting or
34opposing a request for a temporary restraining order or order after
35hearing, or both, under this section as provided in Section 374.

36(b) For purposes of this section:

37(1) “Course of conduct” is a pattern of conduct composed of a
38series of acts over a period of time, however short, evidencing a
39continuity of purpose, including following or stalking an individual,
40making harassing telephone calls to an individual, or sending
P52   1harassing correspondence to an individual by any means, including,
2but not limited to, the use of public or private mails, interoffice
3mail, facsimile, or email. Constitutionally protected activity is not
4included within the meaning of “course of conduct.”

5(2) “Credible threat of violence” is a knowing and willful
6statement or course of conduct that would place a reasonable person
7in fear for his or her safety or the safety of his or her immediate
8family, and that serves no legitimate purpose.

9(3) “Harassment” is unlawful violence, a credible threat of
10violence, or a knowing and willful course of conduct directed at
11a specific person that seriously alarms, annoys, or harasses the
12person, and that serves no legitimate purpose. The course of
13conduct must be that which would cause a reasonable person to
14suffer substantial emotional distress, and must actually cause
15substantial emotional distress to the petitioner.

16(4) “Petitioner” means the person to be protected by the
17temporary restraining order and order after hearing and, if the court
18grants the petition, the protected person.

19(5) “Respondent” means the person against whom the temporary
20restraining order and order after hearing are sought and, if the
21petition is granted, the restrained person.

22(6) “Temporary restraining order” and “order after hearing”
23mean orders that include any of the following restraining orders,
24whether issued ex parte or after notice and hearing:

25(A) An order enjoining a party from harassing, intimidating,
26molesting, attacking, striking, stalking, threatening, sexually
27assaulting, battering, abusing, telephoning, including, but not
28limited to, making annoying telephone calls, as described in Section
29653m of the Penal Code, destroying personal property, contacting,
30either directly or indirectly, by mail or otherwise, or coming within
31a specified distance of, or disturbing the peace of, the petitioner.
32On a showing of good cause, in an order issued pursuant to this
33subparagraph in connection with an animal owned, possessed,
34leased, kept, or held by the petitioner, or residing in the residence
35or household of the petitioner, the court may do either or both of
36the following:

37(i) Grant the petitioner exclusive care, possession, or control of
38the animal.

39(ii) Order the respondent to stay away from the animal and
40refrain from taking, transferring, encumbering, concealing,
P53   1molesting, attacking, striking, threatening, harming, or otherwise
2disposing of the animal.

3(B) An order enjoining a party from specified behavior that the
4court determines is necessary to effectuate orders described in
5subparagraph (A).

6(7) “Unlawful violence” is any assault or battery, or stalking as
7prohibited in Section 646.9 of the Penal Code, but does not include
8lawful acts of self-defense or defense of others.

9(c) In the discretion of the court, on a showing of good cause,
10a temporary restraining order or order after hearing issued under
11this section may include other named family or household
12members.

13(d) Upon filing a petition for orders under this section, the
14petitioner may obtain a temporary restraining order in accordance
15with Section 527, except to the extent this section provides an
16inconsistent rule. The temporary restraining order may include
17any of the restraining orders described in paragraph (6) of
18subdivision (b). A temporary restraining order may be issued with
19or without notice, based on a declaration that, to the satisfaction
20of the court, shows reasonable proof of harassment of the petitioner
21by the respondent, and that great or irreparable harm would result
22to the petitioner.

23(e) A request for the issuance of a temporary restraining order
24without notice under this section shall be granted or denied on the
25same day that the petition is submitted to the court. If the petition
26is filed too late in the day to permit effective review, the order
27shall be granted or denied on the next day of judicial business in
28sufficient time for the order to be filed that day with the clerk of
29the court.

30(f) A temporary restraining order issued under this section shall
31remain in effect, at the court’s discretion, for a period not to exceed
3221 days, or, if the court extends the time for hearing under
33subdivision (g), not to exceed 25 days, unless otherwise modified
34or terminated by the court.

35(g) Within 21 days, or, if good cause appears to the court, 25
36days from the date that a petition for a temporary order is granted
37or denied, a hearing shall be held on the petition. If a request for
38a temporary order is not made, the hearing shall be held within 21
39days, or, if good cause appears to the court, 25 days, from the date
40that the petition is filed.

P54   1(h) The respondent may file a response that explains, excuses,
2justifies, or denies the alleged harassment, or may file a
3cross-petition under this section.

4(i) At the hearing, the judge shall receive any testimony that is
5relevant, and may make an independent inquiry. If the judge finds
6by clear and convincing evidence that unlawful harassment exists,
7an order shall issue prohibiting the harassment.

8(j) (1) In the discretion of the court, an order issued after notice
9and hearing under this section may have a duration of no more
10than five years, subject to termination or modification by further
11order of the court either on written stipulation filed with the court
12or on the motion of a party. The order may be renewed, upon the
13request of a party, for a duration of no more than five additional
14years, without a showing of any further harassment since the
15issuance of the original order, subject to termination or
16modification by further order of the court either on written
17stipulation filed with the court or on the motion of a party. A
18request for renewal may be brought any time within the three
19months before the order expires.

20(2) The failure to state the expiration date on the face of the
21form creates an order with a duration of three years from the date
22of issuance.

23(3) If an action is filed for the purpose of terminating or
24modifying a protective order before the expiration date specified
25in the order by a party other than the protected party, the party
26who is protected by the order shall be given notice, pursuant to
27subdivision (b) of Section 1005, of the proceeding by personal
28service or, if the protected party has satisfied the requirements of
29Chapter 3.1 (commencing with Section 6205) of Division 7 of
30Title 1 of the Government Code, by service on the Secretary of
31State. If the party who is protected by the order cannot be notified
32before the hearing for modification or termination of the protective
33order, the court shall deny the motion to modify or terminate the
34order without prejudice or continue the hearing until the party who
35is protected can be properly noticed and may, upon a showing of
36good cause, specify another method for service of process that is
37reasonably designed to afford actual notice to the protected party.
38The protected party may waive his or her right to notice if he or
39she is physically present in court and does not challenge the
40sufficiency of the notice.

P55   1(k) This section does not preclude either party from
2representation by private counsel or from appearing on the party’s
3own behalf.

4(l) In a proceeding under this section, if there are allegations of
5unlawful violence or credible threats of violence, a support person
6may accompany a party in court and, if the party is not represented
7by an attorney, may sit with the party at the table that is generally
8reserved for the party and the party’s attorney. The support person
9is present to provide moral and emotional support for a person
10who alleges he or she is a victim of violence. The support person
11is not present as a legal adviser and may not provide legal advice.
12The support person may assist the person who alleges he or she is
13a victim of violence in feeling more confident that he or she will
14not be injured or threatened by the other party during the
15proceedings if the person who alleges he or she is a victim of
16violence and the other party are required to be present in close
17proximity. This subdivision does not preclude the court from
18exercising its discretion to remove the support person from the
19courtroom if the court believes the support person is prompting,
20swaying, or influencing the party assisted by the support person.

21(m) Upon the filing of a petition under this section, the
22respondent shall be personally served with a copy of the petition,
23temporary restraining order, if any, and notice of hearing of the
24petition. Service shall be made at least five days before the hearing.
25The court may for good cause, on motion of the petitioner or on
26its own motion, shorten the time for service on the respondent.

27(n) A notice of hearing under this section shall notify the
28respondent that if he or she does not attend the hearing, the court
29may make orders against him or her that could last up to five years.

30(o) The respondent shall be entitled, as a matter of course, to
31one continuance, for a reasonable period, to respond to the petition.

32(p) (1) Either party may request a continuance of the hearing,
33which the court shall grant on a showing of good cause. The request
34may be made in writing before or at the hearing, or orally at the
35hearing. The court may also grant a continuance on its own motion.

36(2) If the court grants a continuance, any temporary restraining
37order that has been granted shall remain in effect until the end of
38the continued hearing, unless otherwise ordered by the court. In
39granting a continuance, the court may modify or terminate a
40temporary restraining order.

P56   1(q) (1) If a respondent named in a restraining order issued after
2a hearing has not been served personally with the order but has
3received actual notice of the existence and substance of the order
4through personal appearance in court to hear the terms of the order
5from the court, additional proof of service is not required for
6enforcement of the order.

7(2) If the respondent named in a temporary restraining order is
8personally served with the order and notice of hearing with respect
9 to a restraining order or protective order based on the temporary
10restraining order, but the respondent does not appear at the hearing,
11either personally or by an attorney, and the terms and conditions
12of the restraining order or protective order issued at the hearing
13are identical to the temporary restraining order, except for the
14duration of the order, the restraining order or protective order
15issued at the hearing may be served on the respondent by first-class
16mail sent to the respondent at the most current address for the
17respondent available to the court.

18(3) The Judicial Council form for temporary orders issued
19pursuant to this subdivision shall contain a statement in
20substantially the following form:


22“If you have been personally served with this temporary
23restraining order and notice of hearing, but you do not appear at
24the hearing either in person or by a lawyer, and a restraining order
25that is the same as this temporary restraining order except for the
26expiration date is issued at the hearing, a copy of the restraining
27order will be served on you by mail at the following address: ____.

28If that address is not correct or you wish to verify that the
29temporary restraining order was converted to a restraining order
30at the hearing without substantive change and to find out the
31duration of that order, contact the clerk of the court.”


33(r) (1) Information on a temporary restraining order or order
34after hearing relating to civil harassment issued by a court pursuant
35to this section shall be transmitted to the Department of Justice in
36accordance with either paragraph (2) or (3).

37(2) The court shall order the petitioner or the attorney for the
38petitioner to deliver a copy of an order issued under this section,
39or reissuance, extension, modification, or termination of the order,
40and any subsequent proof of service, by the close of the business
P57   1day on which the order, reissuance, extension, modification, or
2termination was made, to a law enforcement agency having
3jurisdiction over the residence of the petitioner and to any
4additional law enforcement agencies within the court’s discretion
5as are requested by the petitioner.

6(3) Alternatively, the court or its designee shall transmit, within
7one business day, to law enforcement personnel all information
8required under subdivision (b) of Section 6380 of the Family Code
9regarding any order issued under this section, or a reissuance,
10extension, modification, or termination of the order, and any
11subsequent proof of service, by either one of the following
12methods:

13(A) Transmitting a physical copy of the order or proof of service
14to a local law enforcement agency authorized by the Department
15of Justice to enter orders into the California Law Enforcement
16Telecommunications System (CLETS).

17(B) With the approval of the Department of Justice, entering
18the order or proof of service into CLETS directly.

19(4) Each appropriate law enforcement agency shall make
20available information as to the existence and current status of
21orders issued under this section to law enforcement officers
22responding to the scene of reported harassment.

23(5) An order issued under this section shall, on request of the
24petitioner, be served on the respondent, whether or not the
25respondent has been taken into custody, by any law enforcement
26officer who is present at the scene of reported harassment involving
27the parties to the proceeding. The petitioner shall provide the
28officer with an endorsed copy of the order and a proof of service
29that the officer shall complete and send to the issuing court.

30(6) Upon receiving information at the scene of an incident of
31harassment that a protective order has been issued under this
32section, or that a person who has been taken into custody is the
33subject of an order, if the protected person cannot produce a
34certified copy of the order, a law enforcement officer shall
35immediately attempt to verify the existence of the order.

36(7) If the law enforcement officer determines that a protective
37order has been issued but not served, the officer shall immediately
38notify the respondent of the terms of the order and shall at that
39time also enforce the order. Verbal notice of the terms of the order
40shall constitute service of the order and is sufficient notice for
P58   1purposes of this section and for purposes of Section 29825 of the
2Penal Code.

3(s) The prevailing party in an action brought under this section
4may be awarded court costs and attorney’s fees, if any.

5(t) Willful disobedience of a temporary restraining order or
6order after hearing granted under this section is punishable pursuant
7to Section 273.6 of the Penal Code.

8(u) (1) A person subject to a protective order issued under this
9section shall not own, possess, purchase, receive, or attempt to
10purchase or receive a firearm or ammunition while the protective
11order is in effect.

12(2) The court shall order a person subject to a protective order
13issued under this section to relinquish any firearms he or she owns
14or possesses pursuant to Section 527.9.

15(3) A person who owns, possesses, purchases, or receives, or
16attempts to purchase or receive, a firearm or ammunition while
17the protective order is in effect is punishable pursuant to Section
1829825 of the Penal Code.

19(v) This section does not apply to any action or proceeding
20covered by Title 1.6C (commencing with Section 1788) of Part 4
21of Division 3 of the Civil Code or by Division 10 (commencing
22with Section 6200) of the Family Code. This section does not
23preclude a petitioner from using other existing civil remedies.

24(w) (1) The Judicial Council shall develop forms, instructions,
25and rules relating to matters governed by this section. The petition
26and response forms shall be simple and concise, and their use by
27parties in actions brought pursuant to this section is mandatory.

28(2) A temporary restraining order or order after hearing relating
29to civil harassment issued by a court pursuant to this section shall
30be issued on forms adopted by the Judicial Council and that have
31been approved by the Department of Justice pursuant to subdivision
32(i) of Section 6380 of the Family Code. However, the fact that an
33order issued by a court pursuant to this section was not issued on
34forms adopted by the Judicial Council and approved by the
35Department of Justice shall not, in and of itself, make the order
36unenforceable.

37(x) There is no filing fee for a petition that alleges that a person
38has inflicted or threatened violence against the petitioner, stalked
39the petitioner, or acted or spoken in any other manner that has
40placed the petitioner in reasonable fear of violence, and that seeks
P59   1a protective or restraining order restraining stalking, future
2violence, or threats of violence, in an action brought pursuant to
3this section. A fee shall not be paid for a subpoena filed in
4connection with a petition alleging these acts. A fee shall not be
5paid for filing a response to a petition alleging these acts.

6(y) (1) Subject to paragraph (4) of subdivision (b) of Section
76103.2 of the Government Code, there shall not be a fee for the
8service of process by a sheriff or marshal of a protective or
9restraining order to be issued, if either of the following conditions
10apply:

11(A) The protective or restraining order issued pursuant to this
12section is based upon stalking, as prohibited by Section 646.9 of
13the Penal Code.

14(B) The protective or restraining order issued pursuant to this
15section is based upon unlawful violence or a credible threat of
16 violence.

17(2) The Judicial Council shall prepare and develop forms for
18persons who wish to avail themselves of the services described in
19this subdivision.

20

SEC. 25.  

Section 765.030 of the Code of Civil Procedure is
21amended to read:

22

765.030.  

If the court determines that the lien or other
23encumbrance is in violation of Section 765.010, the court shall
24issue an order striking and releasing the lien or other encumbrance
25and may award costs and reasonable attorney’s fees to the petitioner
26to be paid by the lien or other encumbrance claimant. If the court
27determines that the lien or other encumbrance is valid, the court
28shall issue an order so stating and may award costs and reasonable
29attorney’s fees to the encumbrance claimant to be paid by the
30petitioner. The court may direct that an order issued pursuant to
31this section be recorded.

32

SEC. 26.  

Section 832 of the Code of Civil Procedure is
33amended to read:

34

832.  

For purposes of this chapter, the following definitions
35apply:

36(a) “Basin” has the same meaning as defined in Section 10721
37of the Water Code.

38(b) “Complaint” means a complaint filed in superior court to
39determine rights to extract groundwater and includes any
P60   1cross-complaint that initiates a comprehensive adjudication in
2response to a plaintiff’s complaint or other cross-complaint.

3(c) “Comprehensive adjudication” means an action filed in
4superior court to comprehensively determine rights to extract
5groundwater in a basin.

6(d) “Condition of long-term overdraft” means the condition of
7a groundwater basin where the average annual amount of water
8extracted for a long-term period, generally 10 years or more,
9exceeds the long-term average annual supply of water to the basin,
10plus any temporary surplus. Overdraft during a period of drought
11is not sufficient to establish a condition of long-term overdraft if
12extractions and recharge are managed as necessary to ensure that
13reductions in groundwater levels or storage during a period of
14drought are offset by increases in groundwater levels or storage
15during other periods.

16(e) “Department” means the Department of Water Resources.

17(f) “Expert witness” means a witness qualified pursuant to
18Section 720 of the Evidence Code.

19(g) “Groundwater” means water beneath the surface of the earth
20within the zone below the water table in which the soil is
21completely saturated with water, but does not include water that
22flows in known and definite channels.

23(h) “Groundwater extraction facility” means a device or method
24for extracting groundwater in a basin.

25(i) “Groundwater recharge” means the augmentation of
26groundwater, by natural or artificial means.

27(j) “Person” includes, but is not limited to, counties, local
28agencies, state agencies, federal agencies, tribes, business entities,
29and individuals.

30(k) “Plaintiff” means the person filing the complaint initiating
31a comprehensive adjudication and includes a cross-complainant
32who initiates a comprehensive adjudication by cross-complaint.

33(l) “Public water system” has the same meaning as defined in
34Section 116275 of the Health and Safety Code.

35(m) “State small water system” has the same meaning as defined
36in Section 116275 of the Health and Safety Code.

37(n) “Sustainable Groundwater Management Act” means Part
382.74 (commencing with Section 10720) of Division 6 of the Water
39Code.

P61   1

SEC. 27.  

Section 835 of the Code of Civil Procedure is
2amended to read:

3

835.  

(a) The plaintiff shall provide notice of the comprehensive
4adjudication to all of the following:

5(1) A groundwater sustainability agency that overlies the basin
6or a portion of the basin.

7(2) A city, county, or city and county that overlies the basin or
8a portion of the basin.

9(3) A district with authority to manage or replenish groundwater
10resources of the basin in whole or in part.

11(4) The operator of a public water system or state small water
12system that uses groundwater from the basin to supply water
13service.

14(5) A California Native American tribe that is on the contact
15list maintained by the Native American Heritage Commission.

16(6) The Attorney General, the State Water Resources Control
17Board, the department, and the Department of Fish and Wildlife.

18(7) A federal department or agency that manages a federal
19reservation that overlies the basin or a portion of the basin.

20(8) A person identified under Section 836.5 who is not a party
21to the comprehensive adjudication.

22(9) A person who is on a list, maintained by a groundwater
23management agency, of interested parties that have requested
24notice under the Sustainable Groundwater Management Act.

25(b) The plaintiff may provide notice under this section by first
26class mail or electronic mail.

27(c) (1) Except as provided in paragraph (2), the plaintiff shall
28provide notice under this section as follows:

29(A) To any person entitled to notice under paragraphs (1) to (7),
30inclusive, of subdivision (a) within 15 days of the filing of the
31complaint.

32(B) To any person entitled to notice under paragraphs (8) and
33(9) of subdivision (a) within 30 days of receipt of the name and
34address of the person entitled to notice.

35(2) The plaintiff may take additional time as is reasonably
36necessary before providing notice under this section if the plaintiff
37determines that additional time is necessary to identify a person
38entitled to notice under this section, confirm the accuracy of the
39 name or address of a person, or to determine if the conditions
40requiring notice have been satisfied.

P62   1(d) The plaintiff is not required to provide notice under this
2section to a person who has already been served or intervened in
3the action.

4

SEC. 28.  

Section 850 of the Code of Civil Procedure, as added
5by Section 1 of Chapter 672 of the Statutes of 2015, is amended
6to read:

7

850.  

(a) The court may enter a judgment in a comprehensive
8adjudication if the court finds that the judgment meets all of the
9following criteria:

10(1) It is consistent with Section 2 of Article X of the California
11Constitution.

12(2) It is consistent with the water right priorities of all
13non-stipulating parties and any persons who have claims that are
14exempted pursuant to Section 833 in the basin.

15(3) It treats all objecting parties and any persons who have
16claims that are exempted pursuant to Section 833 equitably as
17compared to the stipulating parties.

18(b) If a party or group of parties submits a proposed stipulated
19judgment that is supported by more than 50 percent of all parties
20who are groundwater extractors in the basin or use the basin for
21groundwater storage and is supported by groundwater extractors
22responsible for at least 75 percent of the groundwater extracted in
23the basin during the five calendar years before the filing of the
24complaint, the court may adopt the proposed stipulated judgment,
25as applied to the stipulating parties, if the proposed stipulated
26judgment meets the criteria described in subdivision (a). A party
27objecting to a proposed stipulated judgment shall demonstrate, by
28a preponderance of evidence, that the proposed stipulated judgment
29does not satisfy one or more criteria described in subdivision (a)
30or that it substantially violates the water rights of the objecting
31party. If the objecting party is unable to make this showing, the
32court may impose the proposed stipulated judgment on the
33objecting party. An objecting party may be subject to a preliminary
34 injunction issued pursuant to Section 847 while his or her
35objections are being resolved.

36

SEC. 29.  

Section 850 of the Code of Civil Procedure, as added
37by Chapter 52 of the Statutes of 1953, is amended and renumbered
38to read:

39

853.  

Upon the failure of a coowner of a mine or mining claim
40to contribute his proportionate share of the taxes that have been
P63   1levied and assessed upon the mine or mining claim for the period
2of five years, a coowner who has paid that share may, at the
3expiration of the five years, serve upon the delinquent coowner
4notice thereof.

5

SEC. 30.  

The heading of Chapter 8 (commencing with Section
6850) of Title 10 of Part 2 of the Code of Civil Procedure is
7amended to read:

8 

9Chapter  8. Actions Against Coowners of Mines
10

 

11

SEC. 31.  

Section 851 of the Code of Civil Procedure, as added
12by Section 1 of Chapter 672 of the Statutes of 2015, is amended
13to read:

14

851.  

The judgment in a comprehensive adjudication conducted
15pursuant to this chapter shall be binding on the parties to the
16comprehensive adjudication and all their successors in interest,
17including, but not limited to, heirs, executors, administrators,
18assigns, lessees, licensees, the agents and employees of the parties
19to the comprehensive adjudication and all their successors in
20interest, and all landowners or other persons claiming rights to
21extract groundwater from the basin whose claims have not been
22exempted and are covered by the notice provided in the
23comprehensive adjudication.

24

SEC. 32.  

Section 851 of the Code of Civil Procedure, as
25amended by Chapter 1611 of the Statutes of 1969, is amended and
26renumbered to read:

27

854.  

The notice shall be served in the manner provided by law
28for the service of a summons in a civil action, but where service
29is by publication, the publication shall be in a newspaper of general
30circulation published in the county in which the mine or mining
31claim is situated or if there is no such newspaper, in such a
32newspaper in an adjoining county, and the publication shall be at
33least once a week for 90 days.

34

SEC. 33.  

Section 852 of the Code of Civil Procedure, as added
35by Section 1 of Chapter 672 of the Statutes of 2015, is amended
36to read:

37

852.  

The court shall have continuing jurisdiction to modify or
38amend a final judgment in a comprehensive adjudication in
39response to new information, changed circumstances, the interests
40of justice, or to ensure that the criteria of subdivision (a) of Section
P64   1850 are met. If feasible, the judge who heard the original
2comprehensive adjudication shall preside over actions or motions
3to modify or amend the final judgment.

4

SEC. 34.  

Section 852 of the Code of Civil Procedure, as added
5by Chapter 52 of the Statutes of 1953, is amended and renumbered
6to read:

7

855.  

If before the expiration of 90 days from the service the
8delinquent fails or refuses to contribute his proportionate share of
9the taxes, the coowner contributing such share may file in the
10superior court of the county in which the mine or mining claim is
11situated a verified petition setting forth the facts and particularly
12describing the mine or mining claim.

13

SEC. 35.  

Section 853 of the Code of Civil Procedure is
14amended and renumbered to read:

15

856.  

If the mine or mining claim is situated in more than one
16county, the petition may be filed in the superior court of either
17county.

18

SEC. 36.  

Section 854 of the Code of Civil Procedure is
19amended and renumbered to read:

20

857.  

The clerk shall set the petition for hearing by the court
21and give notice of the hearing by causing a notice of the time and
22place of the hearing to be posted at the county courthouse at least
2310 days before the hearing. The court may order such further notice
24as it deems proper.

25

SEC. 37.  

Section 855 of the Code of Civil Procedure is
26amended and renumbered to read:

27

858.  

The court shall hear evidence for or against the petition
28and may order judgment on the petition vesting the interest of the
29delinquent in the mine or mining claim in the petitioner.

30

SEC. 38.  

Section 856 of the Code of Civil Procedure is
31amended and renumbered to read:

32

859.  

A certified copy of the decree may be recorded in the
33office of the recorder of each county in which any part of the mine
34or mining claim is situated.

35

SEC. 39.  

Section 1084 of the Code of Civil Procedure is
36amended to read:

37

1084.  

The writ of mandamus may be denominated a writ of
38mandate.

39

SEC. 40.  

Section 1097 of the Code of Civil Procedure is
40amended to read:

P65   1

1097.  

If a peremptory mandate has been issued and directed
2to an inferior tribunal, corporation, board, or person, and it appears
3to the court that a member of the tribunal, corporation, or board,
4or the person upon whom the writ has been personally served, has,
5without just excuse, refused or neglected to obey the writ, the court
6may, upon motion, impose a fine not exceeding one thousand
7dollars. In case of persistence in a refusal of obedience, the court
8may order the party to be imprisoned until the writ is obeyed, and
9may make any orders necessary and proper for the complete
10enforcement of the writ.

11

SEC. 41.  

Section 2025.010 of the Code of Civil Procedure is
12amended to read:

13

2025.010.  

Any party may obtain discovery within the scope
14delimited by Chapter 2 (commencing with Section 2017.010), and
15subject to the restrictions set forth in Chapter 5 (commencing with
16Section 2019.010), by taking in California the oral deposition of
17any person, including any party to the action. The person deposed
18may be a natural person, an organization such as a public or private
19corporation, a partnership, an association, or a governmental
20agency.

21

SEC. 42.  

Section 2031.010 of the Code of Civil Procedure is
22amended to read:

23

2031.010.  

(a) Any party may obtain discovery within the scope
24delimited by Chapter 2 (commencing with Section 2017.010), and
25subject to the restrictions set forth in Chapter 5 (commencing with
26Section 2019.010), by inspecting, copying, testing, or sampling
27documents, tangible things, land or other property, and
28electronically stored information in the possession, custody, or
29control of any other party to the action.

30(b) A party may demand that any other party produce and permit
31the party making the demand, or someone acting on the demanding
32party’s behalf, to inspect and to copy a document that is in the
33possession, custody, or control of the party on whom the demand
34is made.

35(c) A party may demand that any other party produce and permit
36the party making the demand, or someone acting on the demanding
37party’s behalf, to inspect and to photograph, test, or sample any
38tangible things that are in the possession, custody, or control of
39the party on whom the demand is made.

P66   1(d) A party may demand that any other party allow the party
2making the demand, or someone acting on the demanding party’s
3behalf, to enter on any land or other property that is in the
4possession, custody, or control of the party on whom the demand
5is made, and to inspect and to measure, survey, photograph, test,
6or sample the land or other property, or any designated object or
7operation on it.

8(e) A party may demand that any other party produce and permit
9the party making the demand, or someone acting on the demanding
10party’s behalf, to inspect, copy, test, or sample electronically stored
11information in the possession, custody, or control of the party on
12whom demand is made.

13

SEC. 43.  

Section 2033.010 of the Code of Civil Procedure is
14amended to read:

15

2033.010.  

Any party may obtain discovery within the scope
16delimited by Chapter 2 (commencing with Section 2017.010), and
17subject to the restrictions set forth in Chapter 5 (commencing with
18Section 2019.010), by a written request that any other party to the
19action admit the genuineness of specified documents, or the truth
20of specified matters of fact, opinion relating to fact, or application
21of law to fact. A request for admission may relate to a matter that
22is in controversy between the parties.

23

SEC. 44.  

Section 2035.010 of the Code of Civil Procedure is
24amended to read:

25

2035.010.  

(a) One who expects to be a party or expects a
26successor in interest to be a party to an action that may be
27cognizable in a court of the state, whether as a plaintiff, or as a
28defendant, or in any other capacity, may obtain discovery within
29the scope delimited by Chapter 2 (commencing with Section
302017.010), and subject to the restrictions set forth in Chapter 5
31(commencing with Section 2019.010), for the purpose of
32perpetuating that person’s own testimony or that of another natural
33person or organization, or of preserving evidence for use in the
34event an action is subsequently filed.

35(b) One shall not employ the procedures of this chapter for
36purposes of either ascertaining the possible existence of a cause
37of action or a defense to it, or of identifying those who might be
38made parties to an action not yet filed.

39

SEC. 45.  

Section 2036.010 of the Code of Civil Procedure is
40amended to read:

P67   1

2036.010.  

If an appeal has been taken from a judgment entered
2by a court of the state, or if the time for taking an appeal has not
3expired, a party may obtain discovery within the scope delimited
4by Chapter 2 (commencing with Section 2017.010), and subject
5to the restrictions set forth in Chapter 5 (commencing with Section
62019.010), for purposes of perpetuating testimony or preserving
7information for use in the event of further proceedings in that court.

8

SEC. 46.  

Section 2093 of the Code of Civil Procedure is
9amended to read:

10

2093.  

(a) A court, judge or clerk of a court, justice, notary
11public, and officer or person authorized to take testimony in an
12action or proceeding, or to decide upon evidence, has the power
13to administer oaths and affirmations.

14(b) (1) A shorthand reporter certified pursuant to Article 3
15(commencing with Section 8020) of Chapter 13 of Division 3 of
16the Business and Professions Code has the power to administer
17oaths and affirmations and may perform the duties of the deposition
18officer pursuant to Chapter 9 (commencing with Section 2025.010)
19of Title 4. The certified shorthand reporter is entitled to receive
20fees for services rendered during a deposition, including fees for
21deposition services, as specified in subdivision (c) of Section 8211
22of the Government Code.

23(2) This subdivision shall also apply to depositions taken by
24telephone or other remote electronic means as specified in Chapter
252 (commencing with Section 2017.010) and Chapter 9
26(commencing with Section 2025.010) of Title 4.

27(c) (1) A former judge or justice of a court of record in the state
28who retired or resigned from office shall have the power to
29administer oaths and affirmations, if both of the following
30conditions are met:

31(A) The former judge or justice requests and receives a
32certification from the Commission on Judicial Performance
33pursuant to paragraph (2).

34(B) A formal disciplinary proceeding was not pending at the
35time of the retirement or resignation.

36(2) (A) A former judge or justice of a court of record in the
37state who retired or resigned from office may apply to the
38Commission on Judicial Performance to receive a certification to
39administer oaths and affirmations. The commission shall supply
40the required forms to an applicant upon request.

P68   1(B) (i) A certification application shall be accompanied by a
2medical certification. If an applicant’s medical certification
3indicates the applicant does not have a medical condition that
4would impair his or her ability to administer oaths and affirmations,
5the commission shall issue a certification to the applicant to
6administer oaths and affirmations. Except as provided in clause
7(ii), a certification issued pursuant to this paragraph is valid for a
8period of five years from the date of issuance.

9(ii) If an applicant’s medical certification indicates the applicant
10has a medical condition that may impair his or her ability to
11administer oaths and affirmations, but does not do so at the time
12the medical certification is submitted with the application, the
13commission shall issue a certification to administer oaths and
14affirmations, but the certification is only valid for a period of two
15years from the date of issuance.

16(3) Notwithstanding paragraph (1), a former judge or justice of
17a court of record who received a certification from the Commission
18on Judicial Performance before January 1, 2016, to administer
19oaths and affirmations may continue to exercise this power until
20January 1, 2017, at which time he or she shall reapply for
21certification pursuant to paragraph (2).

22(4) The Commission on Judicial Performance may charge a
23regulatory fee not to exceed fifteen dollars ($15) for each
24certification application submitted pursuant to this subdivision to
25cover its costs, including costs to review the medical certification.

26(d) A rule or regulation regarding the confidentiality of
27proceedings of the Commission on Judicial Performance does not
28prohibit the commission from issuing a certificate as provided for
29in this section.

30

SEC. 47.  

Section 2105 of the Corporations Code is amended
31to read:

32

2105.  

(a) A foreign corporation shall not transact intrastate
33business without having first obtained from the Secretary of State
34a certificate of qualification. To obtain that certificate it shall file,
35on a form prescribed by the Secretary of State, a statement and
36designation signed by a corporate officer or, in the case of a foreign
37association that has no officers, signed by a trustee stating:

38(1) Its name and the state or place of its incorporation or
39organization.

40(2) The street address of its principal executive office.

P69   1(3) The street address of its principal office within this state, if
2any.

3(4) The mailing address of its principal executive office, if
4different from the addresses specified pursuant to paragraphs (2)
5and (3).

6(5) The name of an agent upon whom process directed to the
7corporation may be served within this state. The designation shall
8comply with subdivision (b) of Section 1502.

9(6) (A) Its irrevocable consent to service of process directed to
10it upon the agent designated and to service of process on the
11Secretary of State if the agent designated or the agent’s successor
12is no longer authorized to act or cannot be found at the address
13given.

14(B) Consent under this paragraph extends to service of process
15directed to the foreign corporation’s agent in this state for a search
16warrant issued pursuant to Section 1524.2 of the Penal Code, or
17for any other validly issued and properly served search warrant,
18for records or documents that are in the possession of the foreign
19corporation and are located inside or outside of this state. This
20subparagraph shall apply to a foreign corporation that is a party
21or a nonparty to the matter for which the search warrant is sought.
22For purposes of this subparagraph, “properly served” means
23delivered by hand, or in a manner reasonably allowing for proof
24of delivery if delivered by United States mail, overnight delivery
25service, or facsimile to a person or entity listed in Section 2110,
26or any other means specified by the foreign corporation, including,
27but not limited to, email or submission via an Internet Web portal
28that the foreign corporation has designated for the purpose of
29service of process.

30(7) If it is a corporation that will be subject to the Insurance
31Code as an insurer, it shall state that fact.

32(b) Annexed to the statement and designation shall be a
33certificate by an authorized public official of the state or place of
34incorporation of the corporation to the effect that the corporation
35is an existing corporation in good standing in that state or place
36or, in the case of an association, an officers’ certificate stating that
37it is a validly organized and existing business association under
38the laws of a specified foreign jurisdiction.

P70   1(c) Before it may be designated by a foreign corporation as its
2agent for service of process, a corporate agent must comply with
3Section 1505.

4

SEC. 48.  

Section 2207 of the Corporations Code is amended
5to read:

6

2207.  

(a) A corporation is liable for a civil penalty in an
7amount not exceeding one million dollars ($1,000,000) if the
8corporation does both of the following:

9(1) Has actual knowledge that an officer, director, manager, or
10agent of the corporation does any of the following:

11(A) Makes, publishes, or posts, or has made, published, or
12posted, either generally or privately to the shareholders or other
13persons, either of the following:

14(i) An oral, written, or electronically transmitted report, exhibit,
15notice, or statement of its affairs or pecuniary condition that
16includes a material statement or omission that is false and intended
17to give the shares of stock in the corporation a materially greater
18or a materially less apparent market value than they really possess.

19(ii) An oral, written, or electronically transmitted report,
20prospectus, account, or statement of operations, values, business,
21profits, or expenditures, that includes a material false statement or
22omission intended to give the shares of stock in the corporation a
23materially greater or a materially less apparent market value than
24they really possess.

25(B) Refuses, or has refused to make, any book entry or post any
26notice required by law in the manner required by law.

27(C) Misstates or conceals, or has misstated or concealed, from
28a regulatory body a material fact in order to deceive a regulatory
29body to avoid a statutory or regulatory duty, or to avoid a statutory
30or regulatory limit or prohibition.

31(2) Within 30 days after actual knowledge is acquired of the
32actions described in paragraph (1), the corporation knowingly fails
33to do both of the following:

34(A) Notify the Attorney General or appropriate government
35agency in writing, unless the corporation has actual knowledge
36that the Attorney General or appropriate government agency has
37been notified.

38(B) Notify its shareholders in writing, unless the corporation
39has actual knowledge that the shareholders have been notified.

P71   1(b) The requirement for notification under this section does not
2apply if the action taken or about to be taken by the corporation,
3or by an officer, director, manager, or agent of the corporation
4under paragraph (1) of subdivision (a), is abated within the time
5 prescribed for reporting, unless the appropriate government agency
6requires disclosure by regulation.

7(c) If the action reported to the Attorney General pursuant to
8this section implicates the government authority of an agency other
9than the Attorney General, the Attorney General shall promptly
10forward the written notice to that agency.

11(d) If the Attorney General was not notified pursuant to
12subparagraph (A) of paragraph (2) of subdivision (a), but the
13corporation reasonably and in good faith believed that it had
14complied with the notification requirements of this section by
15notifying a government agency listed in paragraph (5) of
16subdivision (e), no penalties shall apply.

17(e) For purposes of this section:

18(1) “Manager” means a person having both of the following:

19(A) Management authority over a business entity.

20(B) Significant responsibility for an aspect of a business that
21includes actual authority for the financial operations or financial
22transactions of the business.

23(2) “Agent” means a person or entity authorized by the
24corporation to make representations to the public about the
25corporation’s financial condition and who is acting within the
26scope of the agency when the representations are made.

27(3) “Shareholder” means a person or entity that is a shareholder
28of the corporation at the time the disclosure is required pursuant
29to subparagraph (B) of paragraph (2) of subdivision (a).

30(4) “Notify its shareholders” means to give sufficient description
31of an action taken or about to be taken that would constitute acts
32or omissions as described in paragraph (1) of subdivision (a). A
33notice or report filed by a corporation with the United States
34Securities and Exchange Commission that relates to the facts and
35circumstances giving rise to an obligation under paragraph (1) of
36subdivision (a) shall satisfy all notice requirements arising under
37paragraph (2) of subdivision (a), but is not the exclusive means of
38satisfying the notice requirements, if the Attorney General or
39appropriate agency is informed in writing that the filing has been
P72   1made together with a copy of the filing or an electronic link where
2it is available online without charge.

3(5) “Appropriate government agency” means an agency on the
4following list that has regulatory authority with respect to the
5financial operations of a corporation:

6(A) Department of Business Oversight.

7(B) Department of Insurance.

8(C) Department of Managed Health Care.

9(D) United States Securities and Exchange Commission.

10(6) “Actual knowledge of the corporation” means the knowledge
11an officer or director of a corporation actually possesses or does
12not consciously avoid possessing, based on an evaluation of
13information provided pursuant to the corporation’s disclosure
14controls and procedures.

15(7) “Refuse to make a book entry” means the intentional decision
16not to record an accounting transaction when all of the following
17conditions are satisfied:

18(A) The independent auditors required recordation of an
19accounting transaction during the course of an audit.

20(B) The corporation’s audit committee has not approved the
21independent auditor’s recommendation.

22(C) The decision is made for the primary purpose of rendering
23the financial statements materially false or misleading.

24(8) “Refuse to post any notice required by law” means an
25intentional decision not to post a notice required by law when all
26of the following conditions exist:

27(A) The decision not to post the notice has not been approved
28by the corporation’s audit committee.

29(B) The decision is intended to give the shares of stock in the
30corporation a materially greater or a materially less apparent market
31 value than they really possess.

32(9) “Misstate or conceal material facts from a regulatory body”
33means an intentional decision not to disclose material facts when
34all of the following conditions exist:

35(A) The decision not to disclose material facts has not been
36approved by the corporation’s audit committee.

37(B) The decision is intended to give the shares of stock in the
38corporation a materially greater or a materially less apparent market
39value than they really possess.

P73   1(10) “Material false statement or omission” means an untrue
2statement of material fact or an omission to state a material fact
3necessary in order to make the statements made under the
4circumstances under which they were made not misleading.

5(11) “Officer” means any person as set forth in Rule 16a-1
6promulgated under the Securities Exchange Act of 1934 or any
7successor regulation thereto, except an officer of a subsidiary
8corporation who is not also an officer of the parent corporation.

9(f) This section only applies to corporations that are issuers, as
10defined in Section 2 of the Sarbanes-Oxley Act of 2002 (15 U.S.C.
11Sec. 7201 et seq.).

12(g) An action to enforce this section may only be brought by
13the Attorney General or a district attorney or city attorney in the
14name of the people of the state.

15

SEC. 49.  

Section 17708.02 of the Corporations Code is
16amended to read:

17

17708.02.  

(a) A foreign limited liability company may apply
18for a certificate of registration to transact business in this state by
19delivering an application to the Secretary of State for filing on a
20form prescribed by the Secretary of State. The application shall
21state all of the following:

22(1) The name of the foreign limited liability company, and, if
23the name does not comply with Section 17701.08, an alternate
24name adopted pursuant to subdivision (a) of Section 17708.05.

25(2) The state or other jurisdiction under whose law the foreign
26limited liability company is organized and the date of its
27organization in that state or other jurisdiction, and a statement that
28the foreign limited liability company is authorized to exercise its
29powers and privileges in that state or other jurisdiction.

30(3) The street address of the foreign limited liability company’s
31principal office and of its principal business office in this state, if
32any.

33(4) (A) The name and street address of the foreign limited
34liability company’s initial agent for service of process in this state
35who consents to service of process and meets the qualifications
36specified in subdivision (c) of Section 17701.13. If a corporate
37agent is designated, only the name of the agent shall be set forth.

38(B) Consent under this paragraph extends to service of process
39directed to the foreign limited liability company’s agent in this
40state for a search warrant issued pursuant to Section 1524.2 of the
P74   1Penal Code, or for any other validly issued and properly served
2search warrant, for records or documents that are in the possession
3of the foreign limited liability company and are located inside or
4outside of this state. This subparagraph shall apply to a foreign
5limited liability company that is a party or a nonparty to the matter
6for which the search warrant is sought. For purposes of this
7subparagraph, “properly served” means delivered by hand, or in
8a manner reasonably allowing for proof of delivery if delivered
9by United States mail, overnight delivery service, facsimile, or
10any other means specified by the foreign limited liability company,
11including email or submission via an Internet Web portal the
12foreign limited liability company has designated for the purpose
13of service of process.

14(5) A statement that the Secretary of State is appointed the agent
15of the foreign limited liability company for service of process if
16the agent has resigned and has not been replaced or if the agent
17 cannot be found or served with the exercise of reasonable diligence.

18(6) The mailing address of the foreign limited liability company
19if different than the street address of the principal office, or
20principal business office in this state.

21(b) A foreign limited liability company shall deliver with a
22completed application under subdivision (a) a certificate of
23existence, status, or good standing or a record of similar import
24signed by the Secretary of State or other official having custody
25of the foreign limited liability company’s publicly filed records in
26the state or other jurisdiction under whose law the foreign limited
27liability company is formed.

28(c) The Secretary of State shall include with instructional
29materials, provided in conjunction with registration under
30subdivision (a), a notice that filing the registration will obligate
31the foreign limited liability company to pay an annual tax to the
32Franchise Tax Board pursuant to Section 17941 of the Revenue
33and Taxation Code. That notice shall be updated annually to specify
34the dollar amount of the tax.

35

SEC. 50.  

Section 25100 of the Corporations Code is amended
36to read:

37

25100.  

The following securities are exempted from Sections
3825110, 25120, and 25130:

39(a) Any security, including a revenue obligation, issued or
40guaranteed by the United States, any state, any city, county, city
P75   1and county, public district, public authority, public corporation,
2public entity, or political subdivision of a state or any agency or
3corporate or other instrumentality of any one or more of the
4foregoing, or any certificate of deposit for any of the foregoing.

5(b) Any security issued or guaranteed by Canada, any Canadian
6province, any political subdivision or municipality of that province,
7or by any other foreign government that the United States currently
8maintains diplomatic relations, if the security is recognized as a
9 valid obligation by the issuer or guarantor, or any certificate of
10deposit for any of the foregoing.

11(c) Any security issued or guaranteed by and representing an
12interest in, or a direct obligation of, a national bank or a bank or
13trust company incorporated under the laws of this state, and any
14security issued by a bank to one or more other banks and
15representing an interest in an asset of the issuing bank.

16(d) Any security issued or guaranteed by a federal savings
17association, federal savings bank, federal land bank, joint land
18bank, national farm loan association, or by any savings association,
19as defined in subdivision (a) of Section 5102 of the Financial Code,
20that is subject to the supervision and regulation of the
21Commissioner of Business Oversight.

22(e) Any security, other than an interest in all or portions of a
23parcel or parcels of real property that are subdivided land or a
24subdivision or in a real estate development, the issuance of which
25is subject to authorization by the Insurance Commissioner, the
26Public Utilities Commission, or the Real Estate Commissioner.

27(f) Any security consisting of any interest in all or portions of
28a parcel or parcels of real property that are subdivided lands or a
29subdivision or in a real estate development. The exemption in this
30subdivision does not apply to either of the following:

31(1) Any investment contract sold or offered for sale with, or as
32part of, that interest.

33(2) Any person engaged in the business of selling, distributing,
34or supplying water for irrigation purposes or domestic use that is
35not a public utility except that the exemption applies to any security
36of a mutual water company, other than an investment contract as
37described in paragraph (1), offered or sold in connection with
38subdivided lands pursuant to Chapter 2 (commencing with Section
3914310) of Part 7 of Division 3 of Title 1.

P76   1(g) Any mutual capital certificates or savings accounts, as
2defined in the Savings Association Law, issued by a savings
3association, as defined by subdivision (a) of Section 5102 of the
4Financial Code, and holding a license or certificate of authority
5then in force from the Commissioner of Business Oversight.

6(h) Any security issued or guaranteed by any federal credit
7union, or by any credit union organized and supervised, or
8regulated, under the Credit Union Law.

9(i) Any security issued or guaranteed by any railroad, other
10common carrier, public utility, or public utility holding company
11that is any of the following:

12(1) Subject to the jurisdiction of the Interstate Commerce
13Commission or its successor.

14(2) A holding company registered with the Securities and
15Exchange Commission under the Public Utility Holding Company
16Act of 1935 or a subsidiary of the holding company within the
17meaning of that act.

18(3) Regulated in respect of the issuance or guarantee of the
19security by a governmental authority of the United States, of any
20state, of Canada or of any Canadian province, and the security is
21subject to registration with or authorization of issuance by that
22authority.

23(j) Any security, except evidences of indebtedness, whether
24interest bearing or not, of an issuer (1) organized exclusively for
25educational, benevolent, fraternal, religious, charitable, social, or
26reformatory purposes and not for pecuniary profit, if no part of the
27net earnings of the issuer inures to the benefit of any private
28shareholder or individual, or (2) organized as a chamber of
29commerce or trade or professional association. The fact that
30amounts received from memberships, or dues, or both will or may
31be used to construct or otherwise acquire facilities for use by
32members of the nonprofit organization does not disqualify the
33organization for this exemption. This exemption does not apply
34to the securities of a nonprofit organization if any promoter thereof
35expects or intends to make a profit directly or indirectly from any
36business or activity associated with the organization or operation
37of the nonprofit organization or from remuneration received from
38the nonprofit organization.

39(k) Any agreement, commonly known as a “life income
40contract,” of an issuer (1) organized exclusively for educational,
P77   1benevolent, fraternal, religious, charitable, social, or reformatory
2purposes and not for pecuniary profit and (2) that the commissioner
3designates by rule or order, with a donor in consideration of a
4donation of property to that issuer and providing for the payment
5to the donor or persons designated by him or her of income or
6specified periodic payments from the donated property or other
7property for the life of the donor or those other persons.

8(l) Any note, draft, bill of exchange, or banker’s acceptance that
9is freely transferable and of prime quality, arises out of a current
10transaction or the proceeds of which have been or are to be used
11for current transactions, and that evidences an obligation to pay
12cash within nine months of the date of issuance, exclusive of days
13of grace, or any renewal of that paper which is likewise limited,
14or any guarantee of that paper or of that renewal, if the paper is
15not offered to the public in amounts of less than twenty-five
16thousand dollars ($25,000) in the aggregate to any one purchaser.
17In addition, the commissioner may, by rule or order, exempt any
18issuer of any notes, drafts, bills of exchange or banker’s
19acceptances from qualification of those securities if the
20commissioner finds that the qualification is not necessary or
21appropriate in the public interest or for the protection of investors.

22(m) Any security issued by a corporation organized and existing
23under the provisions of Chapter 1 (commencing with Section
2454001) of Division 20 of the Food and Agricultural Code.

25(n) Any beneficial interest in an employees’ pension,
26profit-sharing, stock bonus, or similar benefit plan that meets the
27requirements for qualification under Section 401 of the federal
28Internal Revenue Code or any statute amendatory thereof or
29supplementary thereto. A determination letter from the Internal
30Revenue Service stating that an employees’ pension, profit-sharing,
31stock bonus, or similar benefit plan meets those requirements is
32conclusive evidence that the plan is an employees’ pension,
33profit-sharing, stock bonus, or similar benefit plan within the
34meaning of the first sentence of this subdivision until the date the
35determination letter is revoked in writing by the Internal Revenue
36Service, regardless of whether or not the revocation is retroactive.

37(o) (1) Any security listed or approved for listing upon notice
38of issuance on a national securities exchange, if the exchange has
39been certified by rule or order of the commissioner and any warrant
40or right to purchase or subscribe to the security. The exemption
P78   1afforded by this subdivision does not apply to securities listed or
2approved for listing upon notice of issuance on a national securities
3exchange, in a rollup transaction unless the rollup transaction is
4an eligible rollup transaction as defined in Section 25014.7.

5(2) The certification of an exchange shall be made by the
6commissioner upon the written request of the exchange if the
7commissioner finds that the exchange, in acting on applications
8for listing of common stock, substantially applies the minimum
9standards set forth in either subparagraph (A) or (B) of paragraph
10(3), and, in considering suspension or removal from listing,
11substantially applies each of the criteria set forth in paragraph (4).

12(3) Listing standards:

13(A) (i) Shareholders’ equity of at least four million dollars
14($4,000,000).

15(ii) Pretax income of at least seven hundred fifty thousand
16dollars ($750,000) in the issuer’s last fiscal year or in two of its
17last three fiscal years.

18(iii) (I) Minimum public distribution of 500,000 shares,
19exclusive of the holdings of officers, directors, controlling
20shareholders, and other concentrated or family holdings, together
21with a minimum of 800 public holders or minimum public
22distribution of 1,000,000 shares together with a minimum of 400
23public holders. The exchange may also consider the listing of a
24company’s securities if the company has a minimum of 500,000
25shares publicly held, a minimum of 400 shareholders and daily
26trading volume in the issue has been approximately 2,000 shares
27or more for the six months preceding the date of application. In
28evaluating the suitability of an issue for listing under this trading
29provision, the exchange shall review the nature and frequency of
30that activity and any other factors as it determines to be relevant
31in ascertaining whether the issue is suitable for trading. A security
32that trades infrequently shall not be considered for listing under
33this paragraph even though average daily volume amounts to 2,000
34shares per day or more.

35(II) Companies whose securities are concentrated in a limited
36geographical area, or whose securities are largely held in block by
37institutional investors, normally may not be considered eligible
38for listing unless the public distribution appreciably exceeds
39500,000 shares.

P79   1(iv) Minimum price of three dollars ($3) per share for a
2reasonable period of time before the filing of a listing application.
3However, in certain instances an exchange may favorably consider
4listing an issue selling for less than three dollars ($3) per share
5after considering all pertinent factors, including market conditions
6in general, whether historically the issue has sold above three
7dollars ($3) per share, the applicant’s capitalization, and the number
8of outstanding and publicly held shares of the issue.

9(v) An aggregate market value for publicly held shares of at
10least three million dollars ($3,000,000).

11(B) (i) Shareholders’ equity of at least four million dollars
12($4,000,000).

13(ii) Minimum public distribution set forth in clause (iii) of
14subparagraph (A) of paragraph (3).

15(iii) Operating history of at least three years.

16(iv) An aggregate market value for publicly held shares of at
17least fifteen million dollars ($15,000,000).

18(4) Criteria for consideration of suspension or removal from
19listing:

20(A) If a company that has shareholders’ equity of less than one
21million dollars ($1,000,000) has sustained net losses in each of its
22two most recent fiscal years or has net tangible assets of less than
23three million dollars ($3,000,000) and has sustained net losses in
24three of its four most recent fiscal years.

25(B) If the number of shares publicly held, excluding the holdings
26of officers, directors, controlling shareholders, and other
27concentrated or family holdings, is less than 150,000.

28(C) If the total number of shareholders is less than 400 or if the
29number of shareholders of lots of 100 shares or more is less than
30300.

31(D) If the aggregate market value of shares publicly held is less
32than seven hundred fifty thousand dollars ($750,000).

33(E) If shares of common stock sell at a price of less than three
34dollars ($3) per share for a substantial period of time and the issuer
35shall fail to effectuate a reverse stock split of the shares within a
36reasonable period of time after being requested by the exchange
37to take that action.

38(5) (A) A national securities exchange, certified by rule or order
39of the commissioner under this subdivision, shall file annual reports
P80   1when requested to do so by the commissioner. The annual reports
2shall contain, by issuer, all of the following:

3(i) The variances granted to an exchange’s listing standards,
4including variances from corporate governance and voting rights’
5standards, for any security of that issuer.

6(ii) The reasons for the variances.

7(iii) A discussion of the review procedure instituted by the
8exchange to determine the effect of the variances on investors and
9whether the variances should be continued.

10(iv) Any other information that the commissioner deems
11relevant.

12(B) The purpose of these reports is to assist the commissioner
13in determining if the quantitative and qualitative requirements of
14this subdivision are substantially being met by the exchange in
15general or with regard to any particular security.

16(6) The commissioner after appropriate notice and opportunity
17for hearing in accordance with the Administrative Procedure Act
18(Chapter 5 (commencing with Section 11500) of Part 1 of Division
193 of Title 2 of the Government Code) may, in his or her discretion,
20by rule or order, decertify any exchange previously certified that
21ceases substantially to apply the minimum standards or criteria as
22set forth in paragraphs (3) and (4).

23(7) A rule or order of certification shall conclusively establish
24that any security listed or approved for listing upon notice of
25issuance on any exchange named in a rule or order of certification,
26and any warrant or right to purchase or subscribe to that security,
27is exempt under this subdivision until the adoption by the
28commissioner of any rule or order decertifying the exchange.

29(p) A promissory note secured by a lien on real property, that
30is neither one of a series of notes of equal priority secured by
31interests in the same real property nor a note in which beneficial
32interests are sold to more than one person or entity.

33(q) Any unincorporated interindemnity or reciprocal or
34interinsurance contract, that qualifies under the provisions of
35Section 1280.7 of the Insurance Code, between members of a
36cooperative corporation, organized and operating under Part 2
37(commencing with Section 12200) of Division 3 of Title 1, and
38whose members consist only of physicians and surgeons licensed
39in the state, which contracts indemnify solely in respect to medical
40malpractice claims against the members, and which do not collect
P81   1in advance of loss any moneys other than contributions by each
2member to a collective reserve trust fund or for necessary expenses
3of administration.

4(1) Whenever it appears to the commissioner that a person has
5engaged, or is about to engage, in an act or practice constituting a
6violation of Section 1280.7 of the Insurance Code, the
7commissioner may, in the commissioner’s discretion, bring an
8action in the name of the people of the state in the superior court
9to enjoin the acts or practices or to enforce compliance with Section
101280.7 of the Insurance Code. Upon a proper showing a permanent
11or preliminary injunction, a restraining order, or a writ of mandate
12shall be granted and a receiver or conservator may be appointed
13for the defendant or the defendant’s assets.

14(2) The commissioner may, in the commissioner’s discretion,
15make public or private investigations within or outside of the state
16as the commissioner deems necessary to determine if a person has
17violated or is about to violate Section 1280.7 of the Insurance Code
18or to aid in the enforcement of Section 1280.7, and publish
19information concerning the violation of Section 1280.7.

20(3) For purposes of an investigation or proceeding under this
21section, the commissioner or any officer designated by the
22commissioner may administer oaths and affirmations, subpoena
23witnesses, compel their attendance, take evidence, and require the
24production of any books, papers, correspondence, memoranda,
25agreements, or other documents or records that the commissioner
26deems relevant or material to the inquiry.

27(4) In case of contumacy by, or refusal to obey a subpoena
28issued to, any person, the superior court, upon application by the
29commissioner, may issue to the person an order requiring the
30person to appear before the commissioner, or the officer designated
31by the commissioner, to produce documentary evidence, if so
32ordered, or to give evidence touching the matter under investigation
33or in question. Failure to obey the order of the court may be
34punished by the court as a contempt.

35(5) No person is excused from attending or testifying or from
36producing any document or record before the commissioner or in
37obedience to the subpoena of the commissioner or any officer
38designated by the commissioner, or in any proceeding instituted
39by the commissioner, on the ground that the testimony or evidence,
40 documentary or otherwise, required of the person may tend to
P82   1incriminate the person or subject the person to a penalty or
2forfeiture, but no individual may be prosecuted or subjected to any
3penalty or forfeiture for, or on account of, any transaction, matter,
4or thing concerning which the person is compelled, after validly
5claiming the privilege against self-incrimination, to testify or
6produce evidence, documentary or otherwise, except that the
7individual testifying is not exempt from prosecution and
8punishment for perjury or contempt committed in testifying.

9(6) (A) The cost of any review, examination, audit, or
10investigation made by the commissioner under Section 1280.7 of
11the Insurance Code shall be paid to the commissioner by the person
12subject to the review, examination, audit, or investigation, and the
13commissioner may maintain an action for the recovery of these
14costs in any court of competent jurisdiction. In determining the
15cost, the commissioner may use the actual amount of the salary or
16other compensation paid to the persons making the review,
17examination, audit, or investigation plus the actual amount of
18expenses including overhead reasonably incurred in the
19performance of the work.

20(B) The recoverable cost of each review, examination, audit, or
21investigation made by the commissioner under Section 1280.7 of
22the Insurance Code shall not exceed twenty-five thousand dollars
23($25,000), except that costs exceeding twenty-five thousand dollars
24($25,000) shall be recoverable if the costs are necessary to prevent
25a violation of Section 1280.7 of the Insurance Code.

26(r) Any shares or memberships issued by any corporation
27organized and existing pursuant to the provisions of Part 2
28(commencing with Section 12200) of Division 3 of Title 1, if the
29aggregate investment of any shareholder or member in shares or
30memberships sold pursuant to this subdivision does not exceed
31one thousand dollars ($1,000). This exemption does not apply to
32the shares or memberships of that corporation if any promoter
33thereof expects or intends to make a profit directly or indirectly
34from any business or activity associated with the corporation or
35the operation of the corporation or from remuneration, other than
36reasonable salary, received from the corporation. This exemption
37does not apply to nonvoting shares or memberships of that
38corporation issued to any person who does not possess, and who
39will not acquire in connection with the issuance of nonvoting shares
40or memberships, voting power, as defined in Section 12253, in the
P83   1corporation. This exemption does not apply to shares or
2memberships issued by a nonprofit cooperative corporation
3organized to facilitate the creation of an unincorporated
4interindemnity arrangement that provides indemnification for
5medical malpractice to its physician and surgeon members as set
6forth in subdivision (q).

7(s) Any security consisting of or representing an interest in a
8pool of mortgage loans that meets all of the following requirements:

9(1) The pool consists of whole mortgage loans or participation
10interests in those loans, which loans were originated or acquired
11in the ordinary course of business by a national bank or federal
12savings association or federal savings bank having its principal
13office in this state, by a bank incorporated under the laws of this
14state, or by a savings association as defined in subdivision (a) of
15Section 5102 of the Financial Code and that is subject to the
16supervision and regulation of the commissioner, and each of which
17at the time of transfer to the pool is an authorized investment for
18the originating or acquiring institution.

19(2) The pool of mortgage loans is held in trust by a trustee that
20is a financial institution specified in paragraph (1) as trustee or
21otherwise.

22(3) The loans are serviced by a financial institution specified in
23paragraph (1).

24(4) The security is not offered in amounts of less than
25twenty-five thousand dollars ($25,000) in the aggregate to any one
26purchaser.

27(5) The security is offered pursuant to a registration under the
28Securities Act of 1933, or pursuant to an exemption under
29Regulation A under that act, or in the opinion of counsel for the
30issuer, is offered pursuant to an exemption under Section 4(2) of
31that act.

32(t) (1) Any security issued or guaranteed by and representing
33an interest in, or a direct obligation of, an industrial loan company
34incorporated under the laws of the state and authorized by the
35commissioner to engage in industrial loan business.

36(2) Any investment certificate in or issued by an industrial loan
37company that is organized under the laws of a state of the United
38States other than this state, that is insured by the Federal Deposit
39Insurance Corporation, and that maintains a branch office in this
40state.

P84   1

SEC. 51.  

Section 25247 of the Corporations Code is amended
2to read:

3

25247.  

(a) Upon written or oral request, the commissioner
4shall make available to any person the information specified in
5Section 6254.12 of the Government Code and made available
6through the Public Disclosure Program of the Financial Industry
7Regulatory Authority with respect to any broker-dealer or agent
8licensed or regulated under this part. The commissioner shall also
9make available the current license status and the year of issuance
10of the license of a broker-dealer. Any information disclosed
11pursuant to this subdivision shall constitute a public record.
12Notwithstanding any other law, the commissioner may disclose
13either orally or in writing that information pursuant to this
14subdivision. There shall be no liability on the part of, and no cause
15of action of any nature shall arise against, the state, the Department
16of Business Oversight, the Commissioner of Business Oversight,
17or any officer, agent, or employee of the state or the Department
18of Business Oversight for the release of any false or unauthorized
19information, unless the release of that information was done with
20knowledge and malice.

21(b) Any broker-dealer or agent licensed or regulated under this
22part shall, upon request, deliver a written notice to any client when
23a new account is opened stating that information about the license
24status or disciplinary record of a broker-dealer or an agent may be
25obtained from the Division of Corporations, or from any other
26source that provides substantially similar information.

27(c) The notice provided under subdivision (b) shall contain the
28office location or telephone number where the information may
29be obtained.

30(d) A broker-dealer or agent is exempt from providing the notice
31required under subdivision (b) if a person who does not have a
32financial relationship with the broker-dealer or agent, requests
33only general operational information such as the nature of the
34broker-dealer’s or agent’s business, office location, hours of
35operation, basic services, and fees, but does not solicit advice
36regarding investments or other services offered.

37(e) Upon written or oral request, the commissioner shall make
38available to any person the disciplinary records maintained on the
39Investment Adviser Registration Depository and made available
40through the Investment Advisor Public Disclosure Internet Web
P85   1site as to any investment adviser, investment adviser representative,
2or associated person of an investment adviser licensed or regulated
3under this part. The commissioner shall also make available the
4current license status and the year of issuance of the license of an
5investment adviser. Any information disclosed pursuant to this
6subdivision shall constitute a public record. Notwithstanding any
7other law, the commissioner may disclose that information either
8orally or in writing pursuant to this subdivision. There shall be no
9liability on the part of, and no cause of action of any nature shall
10arise against, the state, the Department of Business Oversight, the
11Commissioner of Business Oversight, or any officer, agent, or
12employee of the state or the Department of Business Oversight for
13the release of any false or unauthorized information, unless the
14release of that information was done with knowledge and malice.

15(f) Section 461 of the Business and Professions Code shall not
16apply to the Division of Corporations when using a national,
17uniform application adopted or approved for use by the Securities
18and Exchange Commission, the North American Securities
19Administrators Association, or the Financial Industry Regulatory
20Authority that is required for participation in the Central
21Registration Depository or the Investment Adviser Registration
22Depository.

23(g) This section shall not require the disclosure of criminal
24history record information maintained by the Federal Bureau of
25Investigation pursuant to Section 534 of Title 28 of the United
26States Code, and the rules thereunder, or information not otherwise
27subject to disclosure under the Information Practices Act of 1977.

28

SEC. 52.  

Section 221.6 of the Education Code is amended to
29read:

30

221.6.  

On or before July 1, 2006, the department shall post on
31its Internet Web site, in both English and Spanish and at a reading
32level that may be comprehended by pupils in high school, the
33information set forth in the federal regulations implementing Title
34IX of the Education Amendments of 1972 (20 U.S.C. Sec. 1681
35et seq.).

36

SEC. 53.  

Section 1313 of the Education Code is amended to
37read:

38

1313.  

Each county employee whose status is changed by this
39article, and who is in employment and a member of a county
40retirement system other than one provided by contract with the
P86   1Public Employees’ Retirement System on the date of the change,
2shall become eligible for membership in the Public Employees’
3Retirement System in accordance with the Public Employees’
4Retirement Law with respect to his or her employment thereafter,
5and shall be subject to the reciprocal benefits provided by those
6systems. However, the employee may elect to continue in
7membership of the county retirement system with respect to his
8or her employment thereafter, in which event the same
9appropriations and transfers of funds shall be made to the
10retirement fund of the county system for the employee as those
11required of the county under the county retirement law, and these
12amounts shall be legal charges against the county school service
13fund. The election authorized by this section shall be made no later
14than the date preceding the date upon which his or her status is
15changed in accordance with procedures to be established by the
16county board of supervisors, which shall allow at least 30 days to
17make the election. The election once made shall not be rescinded.
18An employee who does not elect to continue membership in the
19county system shall be deemed to have discontinued county
20employment for purposes of the county system at the close of the
21day preceding the date upon which his or her status changes.

22

SEC. 54.  

Section 8340.4 of the Education Code is amended to
23read:

24

8340.4.  

The county shall, by the end of the first fiscal year of
25operation under the approved child care subsidy plan, demonstrate,
26in the report required pursuant to Section 8340.5, an increase in
27the aggregate days a child is enrolled in child care in the county
28as compared to the enrollment in the final quarter of the 2014-15
29fiscal year.

30

SEC. 55.  

Section 17250.25 of the Education Code, as added
31by Section 2 of Chapter 752 of the Statutes of 2015, is amended
32to read:

33

17250.25.  

The procurement process for design-build projects
34shall progress as follows:

35(a) (1) The school district shall prepare a set of documents
36setting forth the scope and estimated price of the project. The
37documents may include, but are not limited to, the size, type, and
38desired design character of the project, performance specifications
39covering the quality of materials, equipment, workmanship,
40preliminary plans or building layouts, or any other information
P87   1deemed necessary to describe adequately the school district’s
2needs. The performance specifications and any plans shall be
3prepared by a design professional who is duly licensed and
4registered in the state.

5(2) The documents shall not include a design-build-operate
6contract for a project. The documents, however, may include
7operations during a training or transition period, but shall not
8include long-term operations for a project.

9(b) The school district shall prepare and issue a request for
10qualifications in order to prequalify, or develop a short-list of, the
11design-build entities whose proposals shall be evaluated for final
12selection. The request for qualifications shall include, but is not
13limited to, all of the following elements:

14(1) Identification of the basic scope and needs of the project or
15contract, the expected cost range, the methodology that will be
16used by the school district to evaluate proposals, the procedure for
17final selection of the design-build entity, and any other information
18deemed necessary by the school district to inform interested parties
19of the contracting opportunity.

20(2) Significant factors that the school district reasonably expects
21to consider in evaluating qualifications, including technical design
22and construction expertise, acceptable safety record, and all other
23nonprice-related factors.

24(3) A standard template request for statements of qualifications
25prepared by the school district. In preparing the standard template,
26the school district may consult with the construction industry, the
27building trades and surety industry, and other school districts
28interested in using the authorization provided by this chapter. The
29template shall require the following information:

30(A) If the design-build entity is a privately held corporation,
31limited liability company, partnership, or joint venture, a listing
32of all of the shareholders, partners, or members known at the time
33of statement of qualification submission who will perform work
34on the project.

35(B) Evidence that the members of the design-build team have
36completed, or demonstrated the experience, competency, capability,
37and capacity to complete, projects of similar size, scope, or
38complexity, and that the proposed key personnel have sufficient
39experience and training to competently manage and complete the
40design and construction of the project.

P88   1(C)  A financial statement that ensures that the design-build
2entity has the capacity to complete the project.

3(D) The licenses, registration, and credentials required to design
4and construct the project, including, but not limited to, information
5on the revocation or suspension of any license, credential, or
6registration.

7(E) Evidence that establishes that the design-build entity has
8the capacity to obtain all required payment and performance
9bonding, liability insurance, and errors and omissions insurance.

10(F) Information concerning workers’ compensation experience
11history and a worker safety program.

12(G) If the proposed design-build entity is a corporation, limited
13liability company, partnership, joint venture, or other legal entity,
14a copy of the organizational documents or agreement committing
15to form the organization.

16(H) An acceptable safety record. A proposer’s safety record
17shall be deemed acceptable if its experience modification rate for
18the most recent three-year period is an average of 1.00 or less, and
19its average total recordable injury or illness rate and average lost
20work rate for the most recent three-year period does not exceed
21the applicable statistical standards for its business category, or if
22the proposer is a party to an alternative dispute resolution system,
23as provided for in Section 3201.5 of the Labor Code.

24(c) (1) The information required under a standard template
25pursuant to paragraph (3) of subdivision (b) shall be certified under
26penalty of perjury by the design-build entity and its general partners
27or joint venture members.

28(2) Information required under a standard template pursuant to
29paragraph (3) of subdivision (b) that is not otherwise a public
30record under the California Public Records Act (Chapter 3.5
31(commencing with Section 6250) of Division 7 of Title 1 of the
32Government Code) shall not be open to public inspection.

33(d) A design-build entity shall not be prequalified or shortlisted
34unless the entity provides an enforceable commitment to the school
35district that the entity and its subcontractors at every tier will use
36a skilled and trained workforce to perform all work on the project
37or contract that falls within an apprenticeable occupation in the
38building and construction trades.

39(1) For purposes of this subdivision:

P89   1(A) “Apprenticeable occupation” means an occupation for which
2the Chief of the Division of Apprenticeship Standards had approved
3an apprenticeship program pursuant to Section 3075 of the Labor
4Code before January 1, 2014.

5(B) “Skilled and trained workforce” means a workforce that
6meets all of the following conditions:

7(i) All the workers are either skilled journeypersons or
8apprentices registered in an apprenticeship program approved by
9the Chief of the Division of Apprenticeship Standards.

10(ii) (I) As of July 1, 2016, at least 20 percent of the skilled
11journeypersons employed to perform work on the contract or
12project by the entity and each of its subcontractors at every tier
13are graduates of an apprenticeship program for the applicable
14occupation that was either approved by the Chief of the Division
15of Apprenticeship Standards pursuant to Section 3075 of the Labor
16Code or located outside the state and approved for federal purposes
17pursuant to the apprenticeship regulations adopted by the federal
18Secretary of Labor.

19(II) As of July 1, 2017, at least 30 percent of the skilled
20journeypersons employed to perform work on the contract or
21project by the entity and each of its subcontractors at every tier
22are graduates of an apprenticeship program for the applicable
23occupation that was either approved by the Chief of the Division
24of Apprenticeship Standards pursuant to Section 3075 of the Labor
25Code or located outside the state and approved for federal purposes
26pursuant to the apprenticeship regulations adopted by the federal
27Secretary of Labor.

28(III) As of July 1, 2018, at least 40 percent of the skilled
29journeypersons employed to perform work on the contract or
30project by the entity and each of its subcontractors at every tier
31are graduates of an apprenticeship program for the applicable
32occupation that was either approved by the Chief of the Division
33of Apprenticeship Standards pursuant to Section 3075 of the Labor
34Code or located outside the state and approved for federal purposes
35pursuant to the apprenticeship regulations adopted by the federal
36Secretary of Labor.

37(IV) As of July 1, 2019, at least 50 percent of the skilled
38journeypersons employed to perform work on the contract or
39project by the entity and each of its subcontractors at every tier
40are graduates of an apprenticeship program for the applicable
P90   1occupation that was either approved by the Chief of the Division
2of Apprenticeship Standards pursuant to Section 3075 of the Labor
3Code or located outside the state and approved for federal purposes
4pursuant to the apprenticeship regulations adopted by the federal
5Secretary of Labor.

6(V) As of July 1, 2020, at least 60 percent of the skilled
7journeypersons employed to perform work on the contract or
8project by the entity and each of its subcontractors at every tier
9are graduates of an apprenticeship program for the applicable
10occupation that was either approved by the Chief of the Division
11of Apprenticeship Standards pursuant to Section 3075 of the Labor
12Code or located outside the state and approved for federal purposes
13pursuant to the apprenticeship regulations adopted by the federal
14Secretary of Labor.

15(iii) For an apprenticeable occupation in which no apprenticeship
16program had been approved by the Chief of the Division of
17Apprenticeship Standards before January 1, 1995, up to one-half
18of the graduation percentage requirements of clause (ii) may be
19satisfied by skilled journeypersons who commenced working in
20the apprenticeable occupation before the chief’s approval of an
21apprenticeship program for that occupation in the county in which
22the project is located.

23(C) “Skilled journeyperson” means a worker who either:

24(i) Graduated from an apprenticeship program for the applicable
25occupation that was either approved by the Chief of the Division
26of Apprenticeship Standards or located outside the state and
27approved for federal purposes pursuant to the apprenticeship
28regulations adopted by the federal Secretary of Labor.

29(ii) Has at least as many hours of on-the-job experience in the
30applicable occupation as would be required to graduate from an
31apprenticeship program for the applicable occupation that is
32approved by the chief.

33(2) An entity’s commitment that a skilled and trained workforce
34will be used to perform the project or contract may be established
35by any of the following:

36(A) The entity’s agreement with the school district that the entity
37and its subcontractors at every tier will comply with the
38requirements of this subdivision and that the entity will provide
39the school district with evidence, on a monthly basis while the
40project or contract is being performed, that the entity and its
P91   1subcontractors are complying with the requirements of this
2subdivision.

3(B) If the school district has entered into a project labor
4agreement that will bind all contractors and subcontractors
5performing work on the project or contract and that includes the
6requirements of this subdivision, the entity’s agreement that it will
7become a party to that project labor agreement.

8(C) Evidence that the entity has entered into a project labor
9agreement that includes the requirements of this subdivision and
10that will bind the entity and all its subcontractors at every tier
11performing the project or contract.

12(e) (1) Based on the documents prepared as described in
13subdivision (a), the school district shall prepare a request for
14proposals that invites prequalified or short-listed entities to submit
15competitive sealed proposals in the manner prescribed by the
16school district. The request for proposals shall include, but need
17not be limited to, the following elements:

18(A) Identification of the basic scope and needs of the project or
19contract, the estimated cost of the project, the methodology that
20will be used by the school district to evaluate proposals, whether
21the contract will be awarded on the basis of low bid or best value,
22and any other information deemed necessary by the school district
23to inform interested parties of the contracting opportunity.

24(B) Significant factors that the school district reasonably expects
25to consider in evaluating proposals, including, but not limited to,
26cost or price and all nonprice-related factors.

27(C) The relative importance or the weight assigned to each of
28the factors identified in the request for proposals.

29(2) Where a best value selection method is used, the school
30district may reserve the right to request proposal revisions and
31hold discussions and negotiations with responsive proposers, in
32which case the school district shall so specify in the request for
33proposals and shall publish separately or incorporate into the
34request for proposals applicable procedures to be observed by the
35school district to ensure that any discussions or negotiations are
36conducted in good faith.

37(f) For those projects using low bid as the final selection method,
38the competitive bidding process shall result in lump-sum bids by
39the prequalified or short-listed design-build entities, and awards
P92   1shall be made to the design-build entity that is the lowest
2responsible bidder.

3(g) For those projects using best value as a selection method,
4the design-build competition shall progress as follows:

5(1) Competitive proposals shall be evaluated by using only the
6criteria and selection procedures specifically identified in the
7request for proposals. The following minimum factors, however,
8shall be weighted as deemed appropriate by the school district:

9(A) Price, unless a stipulated sum is specified.

10(B) Technical design and construction expertise.

11(C) Life-cycle costs over 15 or more years.

12(2) Pursuant to paragraph (2) of subdivision (e), the school
13district may hold discussions or negotiations with responsive
14proposers using the process articulated in the school district’s
15request for proposals.

16(3) When the evaluation is complete, the responsive proposers
17shall be ranked based on a determination of value provided, and
18no more than three proposers are required to be ranked.

19(4) The award of the contract shall be made to the responsible
20design-build entity whose proposal is determined by the school
21district to have offered the best value to the public.

22(5) Notwithstanding any other law, upon issuance of a contract
23award, the school district shall publicly announce its award,
24identifying the design-build entity to which the award is made,
25along with a statement regarding the basis of the award.

26(6) The statement regarding the school district’s contract award,
27described in paragraph (5), and the contract file shall provide
28sufficient information to satisfy an external audit.

29

SEC. 56.  

Section 17250.35 of the Education Code, as added
30by Section 2 of Chapter 752 of the Statutes of 2015, is amended
31to read:

32

17250.35.  

(a) The school district, in each design-build request
33for proposals, may identify specific types of subcontractors that
34must be included in the design-build entity statement of
35qualifications and proposal. All construction subcontractors that
36are identified in the proposal shall be afforded all the protections
37of Chapter 4 (commencing with Section 4100) of Part 1 of Division
382 of the Public Contract Code.

39(b) Following award of the design-build contract, the
40design-build entity shall proceed as follows in awarding
P93   1construction subcontracts with a value exceeding one-half of 1
2percent of the contract price allocable to construction work:

3(1) Provide public notice of availability of work to be
4 subcontracted in accordance with the publication requirements
5applicable to the competitive bidding process of the school district,
6including a fixed date and time on which qualifications statements,
7bids, or proposals will be due.

8(2) Establish reasonable qualification criteria and standards.

9(3) Award the subcontract either on a best value basis or to the
10lowest responsible bidder. The process may include prequalification
11or short-listing. The foregoing process does not apply to
12construction subcontractors listed in the original proposal.
13Subcontractors awarded construction subcontracts under this
14subdivision shall be afforded all the protections of Chapter 4
15(commencing with Section 4100) of Part 1 of Division 2 of the
16Public Contract Code.

17

SEC. 57.  

Section 33353.7 of the Education Code is amended
18to read:

19

33353.7.  

(a) No later than July 1, 2017, the California
20Interscholastic Federation, in consultation with the department,
21shall develop guidelines, procedures, and safety standards for the
22purpose of classifying competition cheer as an interscholastic sport
23that is consistent with the United States Department of Education’s
24Office for Civil Rights’ definition of a sport.

25(b) For purposes of this section, “competition cheer” means a
26sport in which teams participate in direct, head-to-head competition
27with one another using an objective scoring system.

28(c) The California Interscholastic Federation shall seek a United
29States Department of Education Office for Civil Rights Title IX
30compliance designation for competition cheer. Competition cheer
31shall not be counted toward a school’s Title IX compliance unless
32the United States Department of Education’s Office for Civil Rights
33deems competition cheer compliant with its definition of a sport.

34

SEC. 58.  

Section 41360 of the Education Code is amended to
35read:

36

41360.  

(a) Loans may be made from moneys in the Public
37School District Organization Revolving Fund to newly organized
38elementary, high school, or unified school districts upon application
39of the governing board of any such school district, certified by the
40county superintendent of schools and approved by the
P94   1Superintendent for use by the school district during the period
2from the date the action to form the school district was completed
3and the date the school district becomes effective for all purposes.
4Money loaned to a school district pursuant to this section shall be
5used only to meet one or more of the following:

6(1) The expenses of office rental, office supplies, postage,
7telephone, and telegraphing.

8(2) The expenses of necessary elections required by law or
9authorized by Section 35532.

10(3) The expenses of employing, the salary of, and necessary
11travel expenses of officers and necessary clerical help for the
12governing board of the school district.

13(b) During each of the two successive fiscal years commencing
14with the first fiscal year of the existence of the school district for
15all purposes, the Controller shall deduct from apportionments made
16to that school district an amount equal to one-half of the amount
17loaned to that school district under this section and pay the same
18amount into the Public School District Organization Revolving
19Fund in the State Treasury.

20

SEC. 59.  

Section 41422 of the Education Code is amended to
21read:

22

41422.  

(a) A school district, county office of education, or
23charter school that is prevented from maintaining its schools during
24a fiscal year for at least 175 days or is required to operate sessions
25of shorter length than otherwise prescribed by law because of fire,
26flood, earthquake, or epidemic, or because of any order of any
27military officer of the United States or of the state to meet an
28emergency created by war, or of any civil officer of the United
29States, of the state, or of any county, city and county, or city
30authorized to issue that order to meet an emergency created by
31war, or because of other extraordinary conditions, or because of
32inability to secure or hold a teacher, or because of the illness of
33the teacher, which fact shall be shown to the satisfaction of the
34Superintendent by the affidavits of the members of the governing
35board of the school district, the governing board of the county
36office of education, or the governing board or body of the charter
37school and of the county superintendent of schools, shall receive
38the same apportionment from the State School Fund as it would
39have received had it not been so prevented from maintaining school
40for at least 175 full-length days.

P95   1(b) This section shall also apply to school districts, county
2offices of education, or charter schools that, in the absence of one
3or more of the conditions prescribed by this section, would have
4qualified for funds pursuant to Sections 46200 to 46208, inclusive,
5or Section 47612.5, as applicable.

6

SEC. 60.  

Section 42925 of the Education Code is amended to
7read:

8

42925.  

(a) As a condition of receiving funds, each county
9office of education and consortium of county offices of education
10with a foster youth services coordinating program operated
11pursuant to this chapter shall, to the extent possible, develop and
12enter into a memorandum of understanding, contract, or formal
13agreement with the county child welfare agency pursuant to which
14foster youth services coordinating program funds shall be used, to
15the maximum extent possible, to leverage funds received pursuant
16to Title IV-E of the federal Social Security Act (42 U.S.C. Sec.
17670 et seq.) and any other funds that may be used to specifically
18address the educational needs of pupils in foster care, or they shall
19explain in writing, annually, why a memorandum of understanding
20is not practical or feasible.

21(b) To the extent possible, each foster youth services
22coordinating program is encouraged to consider leveraging other
23local funding opportunities to support the educational success of
24pupils in foster care.

25

SEC. 61.  

Section 44977.5 of the Education Code is amended
26to read:

27

44977.5.  

(a) During each school year, when a person employed
28in a position requiring certification qualifications has exhausted
29all available sick leave, including all accumulated sick leave, and
30continues to be absent from his or her duties on account of
31maternity or paternity leave pursuant to Section 12945.2 of the
32Government Code for a period of up to 12 school weeks, whether
33or not the absence arises out of or in the course of the employment
34of the employee, the amount deducted from the salary due him or
35her for any of the additional 12 weeks in which the absence occurs
36shall not exceed the sum that is actually paid a substitute employee
37employed to fill his or her position during his or her absence or,
38if a substitute employee was not employed, the amount that would
39have been paid to the substitute had he or she been employed. The
P96   1 school district shall make every reasonable effort to secure the
2services of a substitute employee.

3(b) For purposes of subdivision (a):

4(1) The 12-week period shall be reduced by any period of sick
5leave, including accumulated sick leave, taken during a period of
6maternity or paternity leave pursuantbegin insert toend insert Section 12945.2 of the
7Government Code.

8(2) An employee shall not be provided more than one 12-week
9period per maternity or paternity leave. However, if a school year
10terminates before the 12-week period is exhausted, the employee
11may take the balance of the 12-week period in the subsequent
12school year.

13(3) An employee on maternity or paternity leave pursuant to
14Section 12945.2 of the Government Code shall not be denied access
15to differential pay, as specified in subdivision (a), while on that
16leave.

17(c) This section applies whether or not the absence from duty
18is by reason of a leave of absence granted by the governing board
19of the employing school district.

20(d) To the extent that this section conflicts with a provision of
21a collective bargaining agreement entered into by a public school
22employer and an exclusive bargaining representative before January
231, 2016, pursuant to Chapter 10.7 (commencing with Section 3540)
24of Division 4 of Title 1 of the Government Code, this section shall
25not apply until expiration or renewal of that collective bargaining
26agreement.

27(e) For purposes of this section, “maternity or paternity leave”
28means leave for reason of the birth of a child of the employee, or
29the placement of a child with an employee in connection with the
30adoption or foster care of the child by the employee.

31

SEC. 62.  

Section 44984 of the Education Code is amended to
32read:

33

44984.  

(a) The governing board of a school district shall
34provide by rules and regulations for industrial accident and illness
35leaves of absence for all certificated employees. The governing
36board of a school district that is created or whose boundaries or
37status is changed by an action to organize or reorganize school
38districts completed after the effective date of this section shall
39provide by rules and regulations for these leaves of absence on or
P97   1before the date on which the organization or reorganization of the
2school district becomes effective for all purposes.

3(b) The rules or regulations shall include the following
4provisions:

5(1) Allowable leave shall be for not less than 60 days during
6which the schools of the school district are required to be in session
7or when the employee would otherwise have been performing
8work for the school district in any one fiscal year for the same
9accident.

10(2) Allowable leave shall not be accumulated from year to year.

11(3) Industrial accident or illness leave shall commence on the
12first day of absence.

13(4) (A)  If a certificated employee is absent from his or her
14duties on account of an industrial accident or illness, he or she
15shall be paid the portion of the salary due him or her for any month
16in which the absence occurs as, when added to his or her temporary
17disability indemnity under Division 4 or Division 4.5 of the Labor
18Code, will result in a payment to him or her of not more than his
19or her full salary.

20(B) The phrase “full salary” as used in this subdivision shall be
21computed so that it shall not be less than the employee’s “average
22weekly earnings” as that phrase is used in Section 4453 of the
23Labor Code. For purposes of this section, however, the maximum
24and minimum average weekly earnings set forth in Section 4453
25of the Labor Code shall otherwise not be deemed applicable.

26(5) Industrial accident or illness leave shall be reduced by one
27day for each day of authorized absence regardless of a temporary
28disability indemnity award.

29(6) When an industrial accident or illness leave overlaps into
30the next fiscal year, the employee shall be entitled to only the
31amount of unused leave due him or her for the same illness or
32injury.

33(c) Upon termination of the industrial accident or illness leave,
34the employee shall be entitled to the benefits provided in Sections
3544977, 44978, and 44983, and for purposes of each of these
36sections, the employee’s absence shall be deemed to have
37commenced on the date of termination of the industrial accident
38or illness leave, provided that if the employee continues to receive
39temporary disability indemnity, the employee may elect to take as
40much of his or her accumulated sick leave as, when added to his
P98   1or her temporary disability indemnity, will result in a payment to
2him or her of not more than his or her full salary.

3(d) The governing board of a school district may, by rule or
4regulation, provide for an additional leave of absence for industrial
5accident or illness as it deems appropriate.

6(e) During a paid leave of absence, the employee may endorse
7to the school district the temporary disability indemnity checks
8received on account of the employee’s industrial accident or illness.
9The school district, in turn, shall issue the employee appropriate
10salary warrants for payment of the employee’s salary and shall
11deduct normal retirement, other authorized contributions, and the
12temporary disability indemnity, if any, actually paid to and retained
13by the employee for periods covered by the salary warrants.

14(f) In the absence of rules and regulations adopted by the
15governing board of a school district pursuant to this section, an
16employee shall be entitled to industrial accident or illness leave
17as provided in this section but without limitation as to the number
18of days of that leave.

19

SEC. 63.  

Section 45192 of the Education Code is amended to
20read:

21

45192.  

(a) The governing board of a school district shall
22provide by rules and regulations for industrial accident or illness
23leaves of absence for employees who are a part of the classified
24service. The governing board of a school district that is created or
25whose boundaries or status is changed by an action to organize or
26reorganize school districts completed after the effective date of
27this section shall provide by rules and regulations for these leaves
28of absence on or before the date on which the organization or
29reorganization of the school district becomes effective for all
30purposes.

31(b) The rules and regulations shall include the following
32provisions:

33(1) Allowable leave shall not be for less than 60 working days
34in any one fiscal year for the same accident.

35(2) Allowable leave shall not be accumulative from year to year.

36(3) Industrial accident or illness leave will commence on the
37first day of absence.

38(4) Payment for wages lost on any day shall not, when added
39to an award granted the employee under the workers’ compensation
40laws of this state, exceed the normal wage for the day.

P99   1(5) Industrial accident leave will be reduced by one day for each
2day of authorized absence regardless of a compensation award
3made under workers’ compensation.

4(6) When an industrial accident or illness occurs at a time when
5the full 60 days will overlap into the next fiscal year, the employee
6shall be entitled to only that amount remaining at the end of the
7fiscal year in which the injury or illness occurred, for the same
8illness or injury.

9(c) The industrial accident or illness leave of absence is to be
10used in lieu of entitlement acquired under Section 45191. When
11entitlement to industrial accident or illness leave has been
12exhausted, entitlement or other sick leave will then be used, but if
13an employee is receiving workers’ compensation, the employee
14shall be entitled to use only so much of his or her accumulated or
15available sick leave, accumulated compensating time, vacation,
16or other available leave as, when added to the workers’
17compensation award, will provide for a full day’s wage or salary.

18(d) The governing board of a school district may, by rule or
19regulation, provide for as much additional leave of absence, paid
20or unpaid, as it deems appropriate and during this leave the
21employee may return to his or her position without suffering any
22loss of status or benefits. The employee shall be notified, in writing,
23that available paid leave has been exhausted, and shall be offered
24an opportunity to request additional leave.

25(e) A period of leave of absence, paid or unpaid, shall not be
26considered to be a break in service of the employee.

27(f) During a paid leave of absence, whether industrial accident
28leave as provided in this section, sick leave, vacation, compensated
29time off, or other available leave provided by law or the action of
30the governing board of a school district, the employee shall endorse
31to the school district wage loss benefit checks received under the
32workers’ compensation laws of this state. The school district, in
33turn, shall issue the employee appropriate warrants for payment
34of wages or salary and shall deduct normal retirement and other
35authorized contributions. Reduction of entitlement to leave shall
36be made only in accordance with this section.

37(g) When all available leaves of absence, paid or unpaid, have
38been exhausted and if the employee is not medically able to assume
39the duties of his or her position, the employee shall, if not placed
40in another position, be placed on a reemployment list for a period
P100  1of 39 months. When available, during the 39-month period, the
2employee shall be employed in a vacant position in the class of
3the employee’s previous assignment over all other available
4candidates except for a reemployment list established because of
5lack of work or lack of funds, in which case the employee shall
6be listed in accordance with appropriate seniority regulations.

7(h) The governing board of a school district may require that
8an employee serve or have served continuously a specified period
9of time with the school district before the benefits provided by this
10section are made available to the employee but this period shall
11not exceed three years and all service of the employee before the
12effective date of this section shall be credited in determining
13compliance with the requirement.

14(i) In the absence of rules and regulations adopted by the
15governing board of a school district, pursuant to this section, an
16employee shall be entitled to industrial and accident or illness leave
17as provided in this section but without limitation as to the number
18of days of this leave and without any requirement of a specified
19period of service.

20(j) An employee who has been placed on a reemployment list,
21as provided in this section, who has been medically released for
22return to duty and who fails to accept an appropriate assignment
23shall be dismissed.

24(k) This section applies to school districts that have adopted the
25merit system in the same manner and effect as if it were a part of
26Article 6 (commencing with Section 45240).

27

SEC. 64.  

Section 46392 of the Education Code is amended to
28read:

29

46392.  

(a) If the average daily attendance of a school district,
30county office of education, or charter school during a fiscal year
31has been materially decreased during a fiscal year because of any
32of the following, the fact shall be established to the satisfaction of
33the Superintendent by affidavits of the members of the governing
34board or body of the school district, county office of education, or
35charter school and the county superintendent of schools:

36(1) Fire.

37(2) Flood.

38(3) Impassable roads.

39(4) Epidemic.

40(5) Earthquake.

P101  1(6) The imminence of a major safety hazard as determined by
2the local law enforcement agency.

3(7) A strike involving transportation services to pupils provided
4by a nonschool entity.

5(8) An order provided for in Section 41422.

6(b) In the event a state of emergency is declared by the Governor
7in a county, a decrease in average daily attendance in the county
8below the approximate total average daily attendance that would
9have been credited to a school district, county office of education,
10or charter school had the state of emergency not occurred shall be
11deemed material. The Superintendent shall determine the length
12of the period during which average daily attendance has been
13reduced by the state of emergency. The period determined by the
14Superintendent shall not extend into the next fiscal year following
15the declaration of the state of emergency by the Governor, except
16upon a showing by a school district, county office of education,
17or charter school, to the satisfaction of the Superintendent, that
18extending the period into the next fiscal year is essential to alleviate
19continued reductions in average daily attendance attributable to
20the state of emergency.

21(c) The average daily attendance of the school district, county
22office of education, or charter school for the fiscal year shall be
23estimated by the Superintendent in a manner that credits to the
24school district, county office of education, or charter school for
25determining the apportionments to be made to the school district,
26county office of education, or charter school from the State School
27Fund approximately the total average daily attendance that would
28have been credited to the school district, county office of education,
29or charter school had the emergency not occurred or had the order
30not been issued.

31(d) This section applies to any average daily attendance that
32occurs during any part of a school year.

33

SEC. 65.  

Section 48204.2 of the Education Code is amended
34to read:

35

48204.2.  

(a) If a school district elects to undertake an
36investigation pursuant to subdivision (c) of Section 48204.1, the
37governing board of the school district shall adopt a policy regarding
38the investigation of a pupil to determine whether the pupil meets
39the residency requirements for school attendance in the school
40district before investigating any pupils.

P102  1(b) The policy shall do all of the following:

2(1) Identify the circumstances upon which the school district
3may initiate an investigation, which shall, at a minimum, require
4the school district employee to be able to identify specific,
5articulable facts supporting the belief that the parent or legal
6guardian of the pupil has provided false or unreliable evidence of
7residency.

8(2) (A) Describe the investigatory methods that may be used
9by the school district in the conduct of the investigation, including
10whether the school district will be employing the services of a
11private investigator.

12(B) Before hiring a private investigator, the policy shall require
13the school district to make reasonable efforts to determine whether
14the pupil resides in the school district.

15(3) Prohibit the surreptitious photographing or video-recording
16of pupils who are being investigated. For purposes of this
17paragraph, “surreptitious photographing or video-recording” means
18the covert collection of photographic or videographic images of
19persons or places subject to an investigation. For purposes of this
20paragraph, the collection of images is not covert if the technology
21is used in open and public view.

22(4) Require that employees and contractors of the school district
23engaged in the investigation identify themselves truthfully as such
24to individuals contacted or interviewed during the course of the
25investigation.

26(5) Require a school district to specify the basis for a
27determination of nonresidency of a pupil, and provide a process
28to appeal that determination. If an appeal is made, the burden shall
29be on the appealing party to show why the decision of the school
30district should be overruled.

31(c) The policy required pursuant to this section shall be adopted
32at a public meeting of the governing board of the school district.

33

SEC. 66.  

Section 51421.5 of the Education Code, as added by
34Section 3 of Chapter 384 of the Statutes of 2015, is amended to
35read:

36

51421.5.  

(a) If, for purposes of this article, a contractor or
37testing center charges an examinee its own separate fee, the
38contractor or testing center shall not charge that fee to an examinee
39who meets all of the following criteria:

P103  1(1) The examinee qualifies as a homeless child or youth, as
2defined in paragraph (2) of Section 725 of the federal
3McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec.
411434a(2)).

5(2) The examinee has not attained 25 years of age as of the date
6of the scheduled examination.

7(3) The examinee can verify his or her status as a homeless child
8or youth. A homeless services provider that has knowledge of the
9examinee’s housing status may verify the examinee’s status for
10purposes of this paragraph.

11(b) For purposes of this section, a “homeless services provider”
12includes either of the following:

13(1) A homeless services provider listed in paragraph (3) of
14subdivision (d) of Section 103577 of the Health and Safety Code.

15(2) Any other person or entity that is qualified to verify an
16individual’s housing status, as determined by the department.

17(c) Additional state funds shall not be appropriated for purposes
18of implementing this section.

19(d) Notwithstanding subdivision (c), the Superintendent may
20use surplus funds in the Special Deposit Fund Account, established
21pursuant to Section 51427, to reimburse contractors for the loss
22of fees, if any, pursuant to this section. A contract executed by the
23department for the provision of examinations pursuant to Section
2451421 or this section shall require that any contracting party accept
25all examinees, including those entitled to a fee waiver pursuant to
26this section. For purposes of this subdivision, “surplus funds” are
27funds remaining after the costs permitted by subdivision (a) of
28Section 51421 are paid.

29(e) On or before December 1, 2018, the Superintendent shall
30submit a report to the appropriate policy and fiscal committees of
31the Legislature that includes, but is not limited to, all of the
32following:

33(1) The number of homeless youth that took a high school
34equivalency test in each of the 2016, 2017, and 2018 calendar
35years.

36(2) The impact of the opportunity to take a high school
37equivalency test at no cost on the number and percentage of
38homeless youth taking a high school equivalency test.

39(3) The estimated number of homeless youth who may take a
40high school equivalency test in future years.

P104  1(4) Recommendations for a permanent funding source to cover
2the cost of the waived fees.

3(5) The annual and projected administrative cost to the
4department.

5(6) The annual and projected reimbursement to the contractor
6pursuant to this section.

7(f) The Superintendent shall adopt emergency regulations, as
8necessary, to implement this section. The adoption of these
9regulations shall be deemed to be an emergency and necessary for
10the immediate preservation of the public peace, health, and safety,
11or general welfare.

12(g) The department shall include a provision in all
13memorandums of understanding with contractors for purposes of
14providing a high school equivalency test, that if the surplus funds
15in the Special Deposit Fund Account are depleted, the ongoing
16costs of a fee waiver for an examinee deemed eligible for a waiver
17pursuant to this section shall be absorbed by the contractor.

18(h) This section shall become inoperative on July 1, 2019, and,
19as of January 1, 2020, is repealed, unless a later enacted statute,
20that becomes operative on or before January 1, 2020, deletes or
21extends the dates on which it becomes inoperative and is repealed.

22

SEC. 67.  

Section 51745.6 of the Education Code is amended
23to read:

24

51745.6.  

(a) (1) The ratio of average daily attendance for
25independent study pupils 18 years of age or less to school district
26full-time equivalent certificated employees responsible for
27independent study, calculated as specified by the department, shall
28not exceed the equivalent ratio of average daily attendance to
29full-time equivalent certificated employees providing instruction
30in other educational programs operated by the school district,
31unless a new higher or lower average daily attendance ratio for all
32other educational programs offered is negotiated in a collective
33bargaining agreement or a memorandum of understanding is
34entered into that indicates an existing collective bargaining
35agreement contains an alternative average daily attendance ratio.

36(2) The ratio of average daily attendance for independent study
37pupils 18 years of age or less to county office of education full-time
38equivalent certificated employees responsible for independent
39study, to be calculated in a manner prescribed by the department,
40shall not exceed the equivalent prior year ratio of average daily
P105  1attendance to full-time equivalent certificated employees for all
2other educational programs operated by the high school or unified
3school district with the largest average daily attendance of pupils
4in that county or the collectively bargained alternative ratio used
5by that high school or unified school district in the prior year,
6unless a new higher or lower average daily attendance ratio for all
7other educational programs offered is negotiated in a collective
8bargaining agreement or a memorandum of understanding is
9entered into that indicates an existing collective bargaining
10agreement contains an alternative average daily attendance ratio.
11The computation of the ratios shall be performed annually by the
12reporting agency at the time of, and in connection with, the second
13principal apportionment report to the Superintendent.

14(b) Only those units of average daily attendance for independent
15study that reflect a pupil-teacher ratio that does not exceed the
16ratios described in subdivision (a) shall be eligible for
17apportionment pursuant to Section 2575, for county offices of
18education, and Section 42238.05, for school districts. This section
19does not prevent a school district or county office of education
20from serving additional units of average daily attendance greater
21than the ratios described in subdivision (a), except that those
22additional units shall not be funded pursuant to Section 2575 or
2342238.05, as applicable. If a school district, charter school, or
24county office of education has a memorandum of understanding
25to provide instruction in coordination with the school district,
26charter school, or county office of education at which a pupil is
27enrolled, the ratios that shall apply for purposes of this paragraph
28are the ratios for the local educational agency providing the
29independent study program to the pupil pursuant to Section
3051749.5.

31(c) The calculations performed for purposes of this section shall
32not include either of the following:

33(1) The average daily attendance generated by special education
34pupils enrolled in special day classes on a full-time basis, or the
35teachers of those classes.

36(2) The average daily attendance or teachers in necessary small
37schools that are eligible to receive funding pursuant to Article 4
38(commencing with Section 42280) of Chapter 7 of Part 24 of
39Division 3.

P106  1(d) The applicable
2 average-daily-attendance-to-certificated-employee ratios described
3in subdivision (a) may, in a charter school, be calculated by using
4a fixed average-daily-attendance-to-certificated-employee ratio of
525 to 1, or by using a ratio of less than 25 pupils per certificated
6employee. A new higher or lower ratio for all other educational
7programs offered by a charter school may be negotiated in a
8collective bargaining agreement, or a memorandum of
9understanding indicating that an existing collective bargaining
10agreement contains an alternative average daily attendance ratio
11may be entered into by a charter school. All charter school pupils,
12regardless of age, shall be included in the applicable
13average-daily-attendance-to-certificated-employee ratio
14calculations.

15

SEC. 68.  

Section 66302 of the Education Code is amended to
16read:

17

66302.  

The Trustees of the California State University, the
18Regents of the University of California, and the governing board
19of each community college district are requested to adopt and
20publish policies on harassment, intimidation, and bullying to be
21included within the rules and regulations governing student
22behavior within their respective segments of public postsecondary
23education. It is the intent of the Legislature that rules and
24regulations governing student conduct be published, at a minimum,
25on the Internet Web site of each public postsecondary educational
26campus and as part of any printed material covering those rules
27and regulations within the respective public postsecondary
28education system.

29

SEC. 69.  

Section 66749.5 of the Education Code is amended
30to read:

31

66749.5.  

(a) The Office of the Chancellor of the California
32Community Colleges shall report to the Legislature on or before
33December 1, 2016, the status of each community college’s
34compliance with the provisions of this article related to creating
35associate degrees for transfer.

36(b) The California State University shall submit two reports to
37the Legislature on campus acceptance of transfer model curricula
38by concentration, on or before December 1, 2016, and on or before
39December 1, 2017, respectively.

P107  1(c) (1) The California State University shall annually,
2commencing December 1, 2016, publicly post available data on
3all of the following:

4(A) The number of students admitted with an associate degree
5for transfer.

6(B) The proportion of students with an associate degree for
7transfer who graduate from the California State University within
8two or three years.

9(C) The number of students with an associate degree for transfer
10who applied to a campus of the California State University and
11were redirected to another campus than that indicated in the
12application.

13(D) The number of students described in subparagraph (C) who
14ultimately enrolled at a California State University campus.

15(2) This subdivision shall become inoperative on November 30,
162021.

17(d) (1) The requirements for submitting reports on or before
18December 1, 2016, imposed under subdivisions (a) and (b) are
19inoperative on December 1, 2020, and the requirement for
20submitting a report on or before December 1, 2017, imposed under
21subdivision (b) is inoperative on December 1, 2021, pursuant to
22Section 10231.5 of the Government Code.

23(2) Reports to be submitted pursuant to subdivisions (a) and (b)
24shall be submitted in compliance with Section 9795 of the
25Government Code.

26(e) This section shall remain in effect only until January 1, 2022,
27and as of that date is repealed, unless a later enacted statute, that
28is enacted before January 1, 2022, deletes or extends that date.

29

SEC. 70.  

Section 69800.2 of the Education Code is amended
30to read:

31

69800.2.  

(a) Before certifying a borrower’s eligibility for a
32private student loan, a public, private, or independent
33postsecondary educational institution shall provide to the student
34information concerning all unused state and federal financial
35assistance, including unused federal student loan moneys available
36to that student.

37(b) An institution that does not participate in federal student
38loan programs shall inform students that the institution does not
39participate in federal loan programs and that students may be
40eligible for federal loans at a participating institution. The
P108  1institution shall provide the student with information regarding
2the Cal Grants Web link on the California Student Aid
3Commission’s Internet Web site and the Federal Student Aid Web
4link on the United States Department of Education’s Internet Web
5site.

6

SEC. 71.  

Section 70037 of the Education Code is amended to
7read:

8

70037.  

(a) The Trustees of the California State University and
9the Regents of the University of California shall adopt regulations
10providing for the withholding of institutional services from a
11student or former student who has been notified in writing at the
12student’s or former student’s last known address that he or she is
13in default on a loan or loans under the DREAM Program.

14(b) The regulations adopted pursuant to subdivision (a) shall
15provide that the services withheld may be provided during a period
16when the facts are in dispute or when the student or former student
17demonstrates to either the Trustees of the California State
18University or the Regents of the University of California, as
19applicable, that reasonable progress has been made to repay the
20loan or that there exists a reasonable justification for the delay as
21determined by the institution. The regulations shall specify the
22services to be withheld from the student, which may include, but
23are not limited to, the following:

24(1) The provision of grades.

25(2) The provision of transcripts.

26(3) The provision of diplomas.

27(c) “Default,” for purposes of this section, means the failure of
28a borrower to make an installment payment when due, or to meet
29other terms of the promissory note if the institution holding the
30loan finds it reasonable to conclude that the borrower no longer
31intends to honor the obligation to repay, provided that this failure
32persists for 180 days for a loan repayable in monthly installments,
33or 240 days for a loan repayable in less frequent installments.

34(d) This section does not impose any requirement upon the
35University of California unless the Regents of the University of
36California, by resolution, makes this section applicable.

37

SEC. 72.  

Section 84750.5 of the Education Code is amended
38to read:

39

84750.5.  

(a) The board of governors, in accordance with the
40statewide requirements contained in paragraphs (1) to (9), inclusive,
P109  1of subdivision (d), and in consultation with institutional
2representatives of the California Community Colleges and
3statewide faculty and staff organizations, so as to ensure their
4participation in the development and review of policy proposals,
5shall develop criteria and standards for the purpose of making the
6annual budget request for the California Community Colleges to
7the Governor and the Legislature, and for the purpose of allocating
8the state general apportionment revenues.

9(b) In developing the criteria and standards, the board of
10governors shall use and strongly consider the recommendations
11and work product of the “System Office Recommendations Based
12on the Report of the Work Group on Community College Finance”
13that was adopted by the board at its meeting of March 7, 2005.
14The board of governors shall complete the development of these
15criteria and standards, accompanied by the necessary procedures,
16processes, and formulas for using its criteria and standards, by
17March 1, 2007, and shall submit on or before that date a report on
18these items to the Legislature and the Governor.

19(c) (1) It is the intent of the Legislature in enacting this section
20to improve the equity and predictability of general apportionment
21and growth funding for community college districts in order that
22the districts may more readily plan and implement instruction and
23related programs, more readily serve students according to the
24policies of the state’s master plan for higher education, and enhance
25the quality of instruction and related services for students.

26(2) It is the intent of the Legislature to determine the amounts
27to be appropriated for purposes of this section through the annual
28Budget Act. Nothing in this section shall be construed as limiting
29the authority either of the Governor to propose, or the Legislature
30to approve, appropriations for California Community Colleges
31programs or purposes.

32(d) The board of governors shall develop the criteria and
33standards within the following statewide minimum requirements:

34(1) The calculations of each community college district’s
35revenue level for each fiscal year shall be based on the level of
36general apportionment revenues, state and local, the community
37college district received for the prior year plus any amount
38attributed to a deficit from the adopted standards to be developed
39pursuant to this section, with revenue adjustments being made for
40increases or decreases in full-time equivalent students (FTES), for
P110  1equalization of funding per credit FTES, for necessary alignment
2of funding per FTES between credit and noncredit programs, for
3inflation, and for other purposes authorized by law.

4(2) Commencing with the 2006-07 fiscal year, the funding
5mechanism developed pursuant to this section shall recognize the
6need for community college districts to receive an annual allocation
7based on the number of colleges and comprehensive centers in the
8community college district. In addition to this basic allocation, the
9marginal amount of credit revenue allocated per FTES shall be
10funded at a rate not less than four thousand three hundred
11sixty-seven dollars ($4,367), as adjusted for the change in the
12cost-of-living in subsequent annual budget acts.

13(A) To the extent that the Budget Act of 2006 contains an
14 appropriation of one hundred fifty-nine million four hundred
15thirty-eight thousand dollars ($159,438,000) for community college
16equalization, the Legislature finds and declares that community
17college equalization for credit FTES has been effectively
18accomplished as of March 31, 2007.

19(B) The chancellor shall develop criteria for the allocation of
20one-time grants for those community college districts that would
21have qualified for more equalization under prior law than pursuant
22to this section and the Budget Act of 2006, and for those
23community college districts that would have qualified for more
24funding under a proposed rural college access grant than pursuant
25to this section and the Budget Act of 2006, as determined by the
26chancellor. Appropriations for the one-time grants shall be provided
27pursuant to paragraph (24) of subdivision (a) of Section 43 of
28Chapter 79 of the Statutes of 2006.

29(3) Noncredit instruction shall be funded at a uniform rate of
30two thousand six hundred twenty-six dollars ($2,626) per FTES,
31as adjusted for the change in the cost of living provided in
32subsequent annual budget acts.

33(4) Funding for instruction in career development and college
34preparation, as authorized pursuant to Section 84760.5, shall be
35provided as follows:

36(A) (i) Beginning in the 2006-07 fiscal year, career
37development and college preparation FTES may be funded at a
38rate of three thousand ninety-two dollars ($3,092) per FTES for
39courses in programs that conform to the requirements of Section
P111  184760.5. This rate shall be adjusted for the change in the cost of
2living or as otherwise provided in subsequent annual budget acts.

3(ii) Beginning in the 2015-16 fiscal year, career development
4and college preparation FTES shall be funded at the same level as
5the credit rate specified in paragraph (2). This rate shall be adjusted
6for the change in the cost of living or as otherwise provided in
7subsequent annual budget acts.

8(iii) The Legislative Analyst shall report to the Legislature on
9or before March 1, 2017, regarding the change in funding specified
10in clause (ii), including whether community colleges offered
11additional classes or programs related to career development or
12college preparation, and whether there was any change in FTES.

13(iv) (I) The requirement for submitting a report imposed under
14clause (iii) is inoperative on March 30, 2019, pursuant to Section
1510231.5 of the Government Code.

16(II) A report submitted pursuant to clause (iii) shall be submitted
17in compliance with Section 9795 of the Government Code.

18(B) Changes in career development and college preparation
19FTES shall result in adjustments to revenues as follows:

20(i) Increases in career development and college preparation
21FTES shall result in an increase in revenues in the year of the
22increase and at the average rate per career development and college
23preparation FTES, including any cost-of-living adjustment
24authorized by statute or by the annual Budget Act.

25(ii) Decreases in career development and college preparation
26FTES shall result in a revenue reduction in the year following the
27decrease at the average rate per career development and college
28preparation FTES.

29(5) Except as otherwise provided by statute, current categorical
30programs providing direct services to students, including extended
31opportunity programs and services, and disabled students programs
32and services, shall continue to be funded separately through the
33annual Budget Act, and shall not be assumed under the budget
34formula otherwise specified by this section.

35(6) For credit and noncredit instruction, changes in FTES shall
36result in adjustments in community college district revenues as
37follows:

38(A) Increases in FTES shall result in an increase in revenues in
39the year of the increase and at the amount per FTES provided for
P112  1in paragraph (2) or (3), as appropriate, including any cost-of-living
2adjustment authorized by statute or by the annual Budget Act.

3(B) Decreases in FTES shall result in revenue reductions
4beginning in the year following the initial year of decrease in FTES,
5and at the district’s marginal funding per FTES.

6(C) Community college districts shall be entitled to the
7restoration of any reductions in apportionment revenue due to
8decreases in FTES during the three years following the initial year
9of decrease in FTES if there is a subsequent increase in FTES.

10(7) Revenue adjustments shall be made to reflect cost changes,
11using the same inflation adjustment as required for school districts
12pursuant to paragraph (2) of subdivision (d) of Section 42238.02.
13These revenue adjustments shall be made to the college and center
14basic allocations, credit and noncredit FTES funding rates, and
15career development and college preparation FTES funding rates.

16(8) The statewide requested increase in budgeted workload
17FTES shall be based, at a minimum, on the sum of the following
18computations:

19(A) Determination of an equally weighted average of the rate
20of change in the state’s population of persons between the ages of
2119 and 24 and the rate of change in the state’s population of persons
22between the ages of 25 and 65, both as determined by the
23Department of Finance’s Demographic Research Unit as
24determined for the preceding fiscal year.

25(B) To the extent the state’s unemployment rate exceeds 5
26percent for the most recently completed fiscal year, that positive
27difference shall be added to the rate computed in subparagraph
28(A). In no event shall that positive difference exceed 2 percent.

29(C) The chancellor may also add to the amounts calculated
30pursuant to subparagraphs (A) and (B) the number of FTES in the
31areas of transfer, vocational education, and basic skills that were
32unfunded in the current fiscal year. For this purpose, the following
33computation shall be determined for each community college
34district, and a statewide total shall be calculated:

35(i) Establish the base level of FTES earned in the prior fiscal
36year for transfer courses consisting of courses meeting the
37California State University breadth or Intersegmental General
38Education Transfer Curriculum requirements or major course
39prerequisites accepted by the University of California or the
40California State University.

P113  1(ii) Establish the base level of FTES earned in the prior fiscal
2year for vocational education courses consisting of courses defined
3by the chancellor’s office Student Accountability Model codes A
4and B that are consistent with the courses used for measuring
5success in this program area under the accountability system
6established pursuant to Section 84754.5.

7(iii) Establish the base level of FTES in the prior fiscal year for
8basic skills courses, both credit and noncredit.

9(iv) Add the sum of FTES for clauses (i) to (iii), inclusive.

10(v) Multiply the result of the calculation made under clause (iv)
11by one plus the community college district’s funded growth rate
12in the current fiscal year. This figure shall represent the
13maintenance of effort level for the budget year.

14(vi) FTES in transfer, vocational education, and basic skills that
15are in excess of the total calculated pursuant to clause (v), shall be
16considered in excess of the maintenance of effort level, and shall
17be eligible for overcap growth funding if the community college
18district exceeds its overall funded FTES.

19(vii) In no event shall the amount calculated pursuant to clause
20(vi) exceed the total unfunded FTES for that fiscal year. To the
21extent the computation specified in subdivision (c) requires the
22reporting of additional data by community college districts, that
23reporting shall be a condition of the receipt of apportionment for
24growth pursuant to this section and those funds shall be available
25to offset any and all costs of providing the data.

26(9) Except as specifically provided in statute, regulations of the
27board of governors for determining and allocating the state general
28apportionment to the community college districts shall not require
29community college district governing boards to expend the
30allocated revenues in specified categories of operation or according
31to the workload measures developed by the board of governors.

32(e) (1) The Chancellor of the Community Colleges shall
33develop, and the board of governors shall adopt, a revised
34apportionment growth formula for use commencing with the
352015-16 fiscal year. The chancellor shall allocate apportionments
36pursuant to the revised formula only after the revised formula, and
37any formulas for adjustment pursuant to paragraph (2), have been
38adopted by the board of governors. The revised apportionment
39growth formula shall support the primary missions of the segment,
40and shall be based on each community’s need for access to the
P114  1community colleges, as determined by local demographics. In
2developing the revised formula, the chancellor shall consider
3multiple factors in determining need; however, the primary factors
4shall be:

5(A) (i) The number of persons under 25 years of age without
6a college degree, within a community college district’s boundaries,
7and the number of persons 25 to 64 years of age, inclusive, without
8a college degree, within a community college district’s boundaries.

9(ii) Notwithstanding clause (i), the chancellor may use
10alternative age ranges depending on the availability of data.

11(B) The number of persons who are unemployed, have limited
12English skills, who are in poverty, or who exhibit other signs of
13being disadvantaged, as determined by the chancellor, within a
14community college district’s boundaries.

15(2) Beginning with the 2016-17 fiscal year, the chancellor shall
16adjust upward the need determination based on each community
17college’s effectiveness in serving residents of neighborhoods,
18within or outside of the community college district’s boundaries,
19that exhibit the highest levels of need in the state.

20(3) The chancellor shall calculate each community college
21district’s proportionate share of the statewide need for access to
22the community colleges based on the application of this formula
23described in paragraph (1), as adjusted pursuant to paragraph (2).

24(4) The chancellor shall calculate the difference between each
25community college district’s proportionate share of the statewide
26need for access to the community colleges, as calculated pursuant
27to paragraph (3), and its current proportionate share of statewide
28enrollment in the community colleges.

29(5) (A) Until a community college district reaches its highest
30level of apportionment revenues previously received, its
31apportionment revenues shall be eligible to increase by the lesser
32of 1 percent of its current apportionment base, or one-half of the
33statewide growth allocation onbegin delete anend deletebegin insert aend insert proportionate basis, regardless
34of need.

35(B) After a community college district reaches its highest level
36of apportionment revenues previously received, it is eligible to
37increase its apportionment revenues by the lesser of one-half of 1
38percent of its current apportionment base, or one-quarter of the
39statewide growth allocation onbegin delete anend deletebegin insert aend insert proportionate basis, regardless
40of its need.

P115  1(6) The remainder of the apportionment growth funding shall
2be allocated to allow each community college district to grow its
3apportionment revenues based on its relative share of the difference
4between the amounts calculated in paragraph (4), up to a maximum
5of its apportionment base for the preceding fiscal year appropriate
6to ensure that community college district is advancing the primary
7missions of the segment. The maximum established by the
8chancellor shall not be less than 5 percent nor greater than 10
9percent of a community college district’s apportionment base for
10the preceding fiscal year.

11(7) Unless otherwise agreed upon by the board of governors,
12apportionment reductions shall be allocated proportionally based
13on the most recent levels of apportionment revenues.

14(8) (A) It is the intent of the Legislature, consistent with
15direction provided in the 2014-15 Budget Act, that apportionment
16growth funding be expended for purposes of increasing the number
17of FTES in courses or programs that support the primary missions
18of the segment.

19(B) (i) Notwithstanding Section 10231.5 of the Government
20Code, on or before October 15, 2015, and each year thereafter, the
21chancellor shall report to the Legislature on the course sections
22and FTES added at each community college that received
23apportionment growth funding in the prior fiscal year, including
24the number of course sections and if any course sections and FTES
25were added that are within the primary missions of the segment
26and those that are not within the primary missions of the segment.

27(ii) A report submitted to the Legislature pursuant to clause (i)
28shall be submitted in compliance with Section 9795 of the
29Government Code.

30(C) For purposes of this section, “primary missions of the
31segment” means credit courses and those noncredit courses
32specified in paragraphs (2) to (6), inclusive, of subdivision (a) of
33Section 84757.

34(f) (1) It is the intent of the Legislature to allow for changes to
35the criteria and standards developed pursuant to subdivisions (a)
36to (d), inclusive, in order to recognize increased operating costs
37and to improve instruction.

38(2) (A) If the annual budget act identifies funds appropriated
39specifically for the purposes of this subdivision, the chancellor
40shall adjust the budget request formula to allocate those funds
P116  1without altering any of the adjustments described in subdivision
2(d). At least 30 days before allocating any state general
3apportionment revenues using a budget request formula revised
4pursuant to this subdivision, the chancellor shall submit to the
5Department of Finance and the Legislature a description of the
6specific adjustments made to the budget request formula.

7(B) A report to the Legislature pursuant to subparagraph (A)
8shall be submitted in compliance with Section 9795 of the
9Government Code.

10

SEC. 73.  

Section 84916 of the Education Code is amended to
11read:

12

84916.  

In order to maximize the benefits derived from public
13funds provided for the purpose of addressing the educational needs
14of adults and to ensure the efficient and coordinated use of
15resources, it is the intent and expectation of the Legislature that
16any community college district, school district, or county office
17of education, or any joint powers authority consisting of community
18college districts, school districts, county offices of education, or
19a combination of these, located within the boundaries of the adult
20education region shall be a member of a consortium pursuant to
21this article if it receives funds from any of the following programs
22or allocations:

23(a) The Adults in Correctional Facilities program.

24(b) The federal Adult Education and Family Literacy Act (Title
25II of the federal Workforce Innovation and Opportunity Act).

26(c) The federal Carl D. Perkins Career and Technical Education
27Act (Public Law 109-270).

28(d) Local control funding formula apportionments received for
29students who are 19 years of age or older.

30(e) Community college apportionments received for providing
31instruction in courses in the areas listed in subdivision (a) of
32Section 84913.

33(f) State funds for remedial education and job training services
34for participants in the CalWORKs program.

35

SEC. 74.  

Section 87787 of the Education Code is amended to
36read:

37

87787.  

(a) The governing board of a community college district
38shall provide by rules and regulations for industrial accident and
39illness leaves of absence for all academic employees. The
40governing board of a community college district that is created or
P117  1whose boundaries or status is changed by an action to organize or
2reorganize community college districts completed after January
31, 1976, shall provide by rules and regulations for those leaves of
4absence on or before the date on which the organization or
5reorganization of the community college district becomes effective.

6(b) The rules or regulations shall include all of the following
7provisions:

8(1) Allowable leave shall be for not less than 60 days during
9 which the community colleges of the district are required to be in
10session or when the employee would otherwise have been
11performing work for the community college district in any one
12fiscal year for the same accident.

13(2) Allowable leave shall not be accumulated from year to year.

14(3) Industrial accident or illness leave shall commence on the
15first day of absence.

16(4) (A) When an academic employee is absent from his or her
17duties on account of an industrial accident or illness, the employee
18shall be paid the portion of the salary due him or her for any month
19in which the absence occurs as, when added to his or her temporary
20disability indemnity under Division 4 (commencing with Section
213200) or Division 4.5 (commencing with Section 6100) of the
22Labor Code, will result in a payment to the employee of not more
23than his or her full salary.

24(B) The phrase “full salary,” as used in this subdivision, shall
25be computed so that it shall not be less than the employee’s
26“average weekly earnings” as that phrase is used in Section 4453
27of the Labor Code. For purposes of this section, however, the
28maximum and minimum average weekly earnings set forth in
29Section 4453 of the Labor Code shall otherwise not be deemed
30applicable.

31(5) Industrial accident or illness leave shall be reduced by one
32day for each day of authorized absence regardless of a temporary
33disability indemnity award.

34(6) When an industrial accident or illness leave overlaps into
35the next fiscal year, the employee shall be entitled to only the
36amount of unused leave due him or her for the same illness or
37injury.

38(c) Upon termination of the industrial accident or illness leave,
39the employee shall be entitled to the benefits provided in Sections
4087780, 87781, and 87786, and, for purposes of each of these
P118  1sections, his or her absence shall be deemed to have commenced
2on the date of termination of the industrial accident or illness leave.
3However, if the employee continues to receive temporary disability
4indemnity, he or she may elect to take as much of his or her
5accumulated sick leave as, when added to his or her temporary
6disability indemnity, will result in a payment to the employee of
7not more than his or her full salary.

8(d) The governing board of a community college district, by
9rule or regulation, may provide for additional leave of absence for
10industrial accident or illness as it deems appropriate.

11(e) During a paid leave of absence, the employee may endorse
12to the community college district the temporary disability
13indemnity checks received on account of his or her industrial
14accident or illness. The community college district, in turn, shall
15issue the employee appropriate salary warrants for payment of the
16employee’s salary and shall deduct normal retirement, other
17authorized contributions, and the temporary disability indemnity,
18if any, actually paid to and retained by the employee for periods
19covered by the salary warrants.

20(f) In the absence of rules and regulations adopted by the
21governing board of a community college district pursuant to this
22section, an employee shall be entitled to industrial accident or
23illness leave as provided in this section but without limitation as
24to the number of days of leave.

25

SEC. 75.  

Section 88192 of the Education Code is amended to
26read:

27

88192.  

(a) The governing board of a community college district
28shall provide, by rules and regulations, for industrial accident or
29illness leaves of absence for employees who are a part of the
30classified service. The governing board of a community college
31district that is created or whose boundaries or status is changed by
32an action to organize or reorganize community college districts
33completed after January 1, 1975, shall provide, by rules and
34regulations, for these leaves of absence on or before the date on
35which the organization or reorganization of the community college
36district becomes effective for all purposes.

37(b) The rules and regulations shall include all of the following
38provisions:

39(1) Allowable leave shall not be for less than 60 working days
40in any one fiscal year for the same accident.

P119  1(2) Allowable leave shall not be accumulative from year to year.

2(3) Industrial accident or illness leave of absence shall
3commence on the first day of absence.

4(4) Payment for wages lost on any day shall not, when added
5to an award granted the employee under the workers’ compensation
6laws of this state, exceed the normal wage for the day.

7(5) Industrial accident leave shall be reduced by one day for
8each day of authorized absence regardless of a compensation award
9made under workers’ compensation.

10(6) When an industrial accident or illness occurs at a time when
11the full 60 days will overlap into the next fiscal year, the employee
12shall be entitled to only that amount remaining at the end of the
13fiscal year in which the injury or illness occurred, for the same
14illness or injury.

15(c) The industrial accident or illness leave of absence is to be
16used in lieu of entitlement acquired under Section 88191. When
17entitlement to industrial accident or illness leave has been
18exhausted, entitlement to other sick leave will then be used, but if
19an employee is receiving workers’ compensation, the employee
20shall be entitled to use only so much of his or her accumulated or
21available sick leave, accumulated compensating time, vacation or
22other available leave as, when added to the workers’ compensation
23award, provide for a full day’s wage or salary.

24(d) The governing board of a community college district, by
25rule or regulation, may provide for additional leave of absence,
26paid or unpaid, as it deems appropriate and during that leave the
27employee may return to his or her position without suffering any
28loss of status or benefits.

29(e) A period of leave of absence, paid or unpaid, shall not be
30considered to be a break in service of the employee.

31(f) During a paid leave of absence, whether industrial accident
32leave as provided in this section, sick leave, vacation, compensated
33time off or other available leave provided by law or the action of
34a governing board of a community college district, the employee
35shall endorse to the community college district wage loss benefit
36checks received under the workers’ compensation laws of this
37state. The community college district, in turn, shall issue the
38employee appropriate warrants for payment of wages or salary
39and shall deduct normal retirement and other authorized
P120  1contributions. Reduction of entitlement to leave shall be made only
2in accordance with this section.

3(g) When all available leaves of absence, paid or unpaid, have
4been exhausted and if the employee is not medically able to assume
5the duties of his or her position, the employee, if not placed in
6another position, shall be placed on a reemployment list for a period
7of 39 months. When available, during the 39-month period, the
8employee shall be employed in a vacant position in the class of
9his or her previous assignment over all other available candidates
10except for a reemployment list established because of lack of work
11or lack of funds, in which case the employee shall be listed in
12accordance with appropriate seniority regulations.

13(h) The governing board of a community college district may
14require that an employee serve, or have served continuously, a
15specified period of time with the community college district before
16the benefits provided by this section are made available to the
17employee. However, that period shall not exceed three years. All
18service of an employee before the effective date of this section
19shall be credited in determining compliance with the requirement.

20(i) In the absence of rules and regulations adopted by the
21governing board of a community college district pursuant to this
22section, an employee shall be entitled to industrial and accident or
23illness leave as provided in this section but without limitation as
24to the number of days of that leave and without any requirement
25of a specified period of service.

26(j) An employee who has been placed on a reemployment list,
27as provided in this section, who has been medically released for
28return to duty and who fails to accept an appropriate assignment
29shall be dismissed.

30(k) This section applies to community college districts that have
31adopted the merit system in the same manner and effect as if it
32were a part of Article 3 (commencing with Section 88060).

33

SEC. 76.  

Section 89090 of the Education Code is amended to
34read:

35

89090.  

(a) The trustees, alumni associations, and auxiliary
36organizations may distribute the names, addresses, and email
37addresses of alumni of the California State University to a business
38as described in subdivision (b), in order to accomplish any or all
39of the following:

P121  1(1) To provide those persons with informational materials
2relating to the university and its programs and activities.

3(2) To provide those persons, the trustees, the alumni
4associations, and the auxiliary organizations with commercial
5opportunities that provide a benefit to those persons, or to the
6trustees, alumni associations, or auxiliary organizations.

7(3) To promote and support the educational mission of the
8university, the trustees, the alumni associations, or the auxiliary
9organizations.

10(b) The disclosures authorized in subdivision (a) shall be
11permitted only if all of the following requirements are met:

12(1) (A) The trustees, the alumni associations, or the auxiliary
13organizations have a written agreement with a business, as defined
14in subdivision (a) of Section 1798.80 of the Civil Code, that
15maintains control over this data that requires the business to
16maintain the confidentiality of the names, addresses, and email
17addresses of the alumni, that requires that the California State
18University retain the right to approve or reject any purpose for
19which the private information is to be used by the business, and
20to review and approve the text of mailings sent to alumni pursuant
21to this section, and that prohibits the business from using the
22information for purposes other than those described in subdivision
23(a). The text of a mailing intended to be sent to alumni pursuant
24to this section shall not be approved by the trustees, the affected
25alumni association, or the affected auxiliary organization unless
26and until the mailing conspicuously identifies the university, the
27alumni association, or the auxiliary organization as associated with
28the business described in the mailing.

29(B) If an affinity partner, as defined in Section 4054.6 of the
30Financial Code, sends any message to an emailbegin delete mailend delete address
31obtained pursuant to this section, that message shall include at
32least both of the following:

33(i) The identity of the sender of the message.

34(ii) A cost-free means for the recipient to notify the sender not
35to electronically transmit any further message to the recipient.

36(2) The trustees, an alumni association, or an auxiliary
37organization shall not disclose to, or share alumni nonpublic
38personal information with, a business, as defined in paragraph (1),
39unless the institution, association, or organization has clearly and
40conspicuously notified the alumnus, pursuant to subdivision (c),
P122  1that the nonpublic personal information may be disclosed to the
2business and that the alumnus has not directed that the nonpublic
3personal information not be disclosed.

4(3) The disclosure of alumni names, addresses, and email
5addresses does not include the names, addresses, and email
6addresses of alumni who, pursuant to subdivision (c) or in another
7manner, have directed the trustees, an alumni association, or an
8auxiliary organization not to disclose their names, addresses, or
9email addresses.

10(4) Information regarding either of the following is not
11disclosed:

12(A) The current students of the California State University.

13(B) An alumnus who, as a student at a campus of the California
14State University, indicated that, pursuant to the federal Family
15Educational Rights and Privacy Act (Public Law 93-380), he or
16she did not wish his or her name, address, and email address to be
17disclosed.

18(c) (1) The trustees, the affected alumni association, or the
19affected auxiliary organization shall satisfy the notice requirements
20of subdivision (b) if it uses the form set forth in paragraph (2). The
21form set forth in this subdivision or a form that complies with
22subparagraphs (A) to (J), inclusive, shall be provided by the
23trustees, the alumni association, or the auxiliary organization to
24the alumnus as required in this subdivision, and shall describe the
25nature of the information the alumnus would receive should the
26alumnus choose not to opt out, so that the alumnus may make a
27decision and provide direction to the trustees, the alumni
28association, or the auxiliary organization regarding the sharing of
29his or her name, address, and email address:

30(A) The form uses the title “IMPORTANT PRIVACY
31CHOICE” and the header, if applicable, as follows: “Restrict
32Information Sharing With Affinity Partners.”

33(B) The titles and headers in the form are clearly and
34conspicuously displayed, and no text in the form is smaller than
3510-point type.

36(C) The form may be provided as a separate document,
37incorporated into another communication piece intended for the
38target audience, or provided through a link to the form located on
39the Internet Web site of the trustees, the affected alumni
40association, or the affected auxiliary organization. If the form is
P123  1provided through a link to an Internet Web page, it shall be
2accompanied by the title “IMPORTANT PRIVACY CHOICE”
3and a clear and concise description of the choice that can be made
4by accessing the form. This requirement may be met by using text
5materially similar to the first paragraph of the form set forth in
6paragraph (2).

7(D) The choice or choices provided in the form are stated
8separately, and may be selected by checking a box.

9(E) The form is designed to call attention to the nature and
10significance of the information in the document.

11(F) The form presents information in clear and concise
12sentences, paragraphs, and sections.

13(G) The form uses short explanatory sentences of an average
14of 15 to 20 words, or bullet lists whenever possible.

15(H) The form avoids multiple negatives, legal terminology, and
16highly technical terminology whenever possible.

17(I) The form avoids explanations that are imprecise and readily
18subject to different interpretations.

19(J) The form is not more than one page.

20(2) The form reads as follows:
21

22IMPORTANT PRIVACY CHOICE

23You have the right to control whether we share your name,
24address, and email address with our affinity partners (companies
25 that we partner with to offer products or services to our alumni).
26Please read the following information carefully before you make
27your choice below:

28Your Rights

29You have the following rights to restrict the sharing of your
30name, address, and email address with our affinity partners. This
31form does not prohibit us from sharing your information when we
32are required to do so by law. This includes sending you information
33about the alumni association, the university, or other products or
34services.

35Your Choice

36Restrict Information Sharing With Affinity Partners:

37Unless you say “NO,” we may share your name, address, and
38email address with our affinity partners. Our affinity partners may
39send you offers to purchase various products or services that we
40may have agreed they can offer in partnership with us.

P124  1( ) NO, please do not share my name, address, and email address
2with your affinity partners.

3Time Sensitive Reply

4You may decide at any time that you do not want us to share
5your information with our affinity partners. Your choice marked
6here will remain unless you state otherwise. However, if we do
7not hear from you, we may share your name, address, and email
8address with our affinity partners.

9If you decide that you do not want to receive information from
10our partners, you may do one of the following:

11(1) Call this toll-free telephone number: (xxx-xxx-xxxx).

12(2) Reply electronically by contacting us through the following
13Internet option: xxxxxxxxxxxx.com.

14(3) Fill out, sign, and send back this form to us at the following
15address (you may want to make a copy for your records).

16Xxxxxxxxxxxxxxxxx

17Xxxxxxxxxxxxxxxxx

18Xxxxxxxxxxxxxxxxx

19Name:

20Address:

21Signature:
22

23(3) (A) The trustees, the affected alumni association, or the
24affected auxiliary organization shall not be in violation of this
25subdivision solely because they include in the form one or more
26brief examples or explanations of the purpose or purposes for
27which, or the context within which, names, addresses, and email
28addresses will be shared, as long as those examples meet the clarity
29and readability standards set forth in paragraph (1).

30(B) (i) The solicitation to students, upon their graduation, from
31the trustees or the alumni association, encouraging students to join
32the alumni association or to avail themselves of the services or
33benefits of the association, shall include the form.

34(ii) The alumni association magazine or newsletter, or both,
35shall include the form on an annual or more frequent basis.

36(iii) The Internet Web site for the alumni association shall
37include a link to the form, which shall be located on either the
38homepage of the association’s Internet Web site or in the
39association’s privacy policy.

P125  1(iv) A one-time mailing to all alumni on the university mailing
2list as of January 1, 2006, shall include the form.

3(v) An annual electronic communication to those alumni for
4whom email addresses are available shall include the form.

5(4) The trustees, the affected alumni associations, or the affected
6auxiliary organizations shall provide at least two alternative
7cost-free means for alumni to communicate their privacy choices,
8such as calling a toll-free telephone number or using electronic
9means. The trustees, the alumni association, or the auxiliary
10organization shall clearly and conspicuously disclose in the form
11required by this subdivision the information necessary to direct
12the alumnus on how to communicate his or her choice, including
13the toll-free telephone or facsimile number or Internet Web site
14address that may be used, if those means of communication are
15offered.

16(5) (A) An alumnus may direct at any time that his or her name,
17address, and email address not be disclosed. The trustees, the
18affected alumni association, or the affected auxiliary organization
19shall comply with the direction of an alumnus concerning the
20sharing of his or her name, address, and email address within 45
21days of receipt by the trustees, the alumni association, or the
22auxiliary organization. When an alumnus directs that his or her
23name, address, and email address not be disclosed, that direction
24is in effect until otherwise stated by the alumnus.

25(B) This subdivision does not prohibit the disclosure of the
26name, address, and email address of an alumnus as allowed by
27other applicable state laws.

28(6) The trustees, or the affected alumni association or the
29affected auxiliary organization, may provide a joint notice from
30the trustees or from one or more alumni associations, as identified
31in the notice, so long as the notice is accurate with respect to the
32trustees and the alumni association or associations or auxiliary
33organization or organizations participating in the joint notice.

34(d) As used in this section, “auxiliary organization” has the
35same meaning as set forth in Section 89901.

36(e) This section shall not be construed to authorize the release
37of any social security numbers.

38

SEC. 77.  

Section 89708 of the Education Code is amended to
39read:

P126  1

89708.  

(a) Tuition fees adequate, in the long run, to meet the
2cost of maintaining special sessions in the California State
3University shall be required of, and collected from, students
4enrolled in each special session pursuant to rules and regulations
5prescribed by the trustees.

6(b) “Special sessions,” as used in this division, means
7self-supporting instructional programs conducted by the California
8State University. The special sessions shall include, but not
9necessarily be limited to, career enrichment and retraining
10programs. It is the intent of the Legislature that those programs,
11currently offered on a self-supporting basis by the California State
12University during summer sessions, may be provided throughout
13the year, and shall be known as special sessions. The
14 self-supporting special sessions shall not supplant, as defined in
15subdivision (c), regular course offerings available on a
16non-self-supporting basis during the regular academic year.

17(c) “Supplant,” as used in this section, means reducing the
18number of state-supported course offerings while increasing the
19number of self-supporting versions of that course.

20(d) To the extent possible, each campus shall ensure that any
21course required as a condition of undergraduate degree completion
22for a state-supported matriculated student shall be offered as a
23state-supported course. A campus shall not require a
24state-supported matriculated student to enroll in a special session
25course in order to fulfill a graduation requirement for a
26state-supported degree program.

27

SEC. 78.  

Section 89712 of the Education Code is amended to
28read:

29

89712.  

(a) (1) Neither a campus of the California State
30University, nor the Chancellor of the California State University
31shall approve a new student success fee or an increase to an existing
32student success fee, as defined in subdivision (g), before all of the
33following requirements are satisfied:

34(A) The campus undertakes a rigorous consultation process that
35informs and educates students on the uses, impact, and cost of any
36proposed student success fee or student success fee increase.

37(B) The campus informs its students of all of the following
38circumstances, which shall apply to these fees:

P127  1(i) That, except as provided in clauses (ii) and (iii), a student
2success fee may be rescinded by a majority vote of the students,
3as specified in subdivision (c).

4(ii) That a student success fee shall not be rescinded earlier than
5six years following the vote to implement the fee.

6(iii) If any portion of the student success fee is committed to
7support a long-term obligation, that portion of the fee shall not be
8rescinded until the obligation has been satisfied.

9(C) The campus shall hold a binding student election on the
10implementation of any proposed student success fees, or any
11increase to an existing student success fee, and a majority of the
12student body voting on the fee must vote affirmatively.

13(2) Implementation of a fee supported by a majority of the
14campus student body voting on the fee is contingent upon the final
15approval of the Chancellor of the California State University.

16(3) A student success fee proposal shall not be brought before
17the student body more frequently than once per academic year.

18(b) A student success fee in place on January 1, 2016, may be
19rescinded by a binding student vote under the procedures
20authorized in subdivision (c) only after at least six years have
21elapsed following the implementation of the fee.

22(c) (1) Student success fees may be rescinded with a binding
23student vote if a simple majority of those students voting vote to
24 rescind the fee. The student vote shall comply with all of the
25following:

26(A) A campus decision to vote is formally approved by the
27recognized student government.

28(B) Rescission vote proposals shall not be brought before the
29student body more frequently than once per academic year.

30(C) In the process of reconsidering a student success fee, and
31before the student vote occurs, the students shall be informed, if
32a portion of the fee is supporting a long-term obligation, the dollar
33amount of that portion, and the date on which the long-term
34obligation would be satisfied.

35(2) A new contractual or other obligation that would be
36supported by the rescinded student success fee shall not be entered
37into following a vote to rescind the fee.

38(d) The Chancellor of the California State University shall
39ensure that all of the following occur on each campus:

P128  1(1) There is majority student representation in campus student
2success fee allocation oversight groups.

3(2) There is an annual report from each campus to the chancellor
4on student success fees.

5(3) There is uniform, transparent, online accountability in the
6decisionmaking process for, and a detailed accounting of, the
7allocation of student success fees.

8(e) The Chancellor of the California State University shall
9establish appropriate reporting procedures to ensure that a campus
10is in compliance with the requirements of this section.

11(f) The chancellor shall report, by December 1 of each year, to
12the Department of Finance, and the Legislature pursuant to Section
139795 of the Government Code, a summary of the fees adopted or
14rescinded in the prior academic year, and the uses of proposed and
15currently implemented fees.

16(g) For purposes of this section, a “student success fee” is a type
17of category II campus-based mandatory fee that is required to be
18paid by a student before that student may enroll or attend a campus
19of the California State University, as determined by that campus
20or the Chancellor of the California State University.

21

SEC. 79.  

Section 92630 of the Education Code is amended to
22read:

23

92630.  

(a) The regents and alumni associations may distribute
24the names, addresses, and email addresses of alumni of the
25University of California to a business as described in subdivision
26(b) in order to accomplish any or all of the following:

27(1) To provide those persons with informational materials
28relating to the university or college and its programs and activities.

29(2) To provide those persons, the regents, and the alumni
30associations with commercial opportunities that provide a benefit
31to those persons, or to the regents or the alumni associations.

32(3) To promote and support the educational mission of the
33university, the regents, or the alumni associations.

34(b) The disclosures authorized in subdivision (a) shall be
35permitted only if all of the following requirements are met:

36(1) (A) The regents or the alumni associations have a written
37agreement with a business, as defined in subdivision (a) of Section
381798.80 of the Civil Code, that maintains control over this data
39that requires the business to maintain the confidentiality of the
40names, addresses, and email addresses of the alumni, that requires
P129  1that the University of California retain the right to approve or reject
2any purpose for which the private information is to be used by the
3business and to review and approve the text of mailings sent to
4alumni pursuant to this section, and that prohibits the business
5from using the information for purposes other than those described
6in subdivision (a). The text of a mailing intended to be sent to
7 alumni pursuant to this section shall not be approved by the regents
8or the affected alumni association unless and until the mailing
9conspicuously identifies the university or the alumni association
10as associated with the business described in the mailing.

11(B) If an affinity partner, as defined in Section 4054.6 of the
12Financial Code, sends any message to an email address obtained
13pursuant to this section, that message shall include at least both of
14the following:

15(i) The identity of the sender of the message.

16(ii) A cost-free means for the recipient to notify the sender not
17to electronically transmit any further message to the recipient.

18(2) The regents or an alumni association shall not disclose to,
19or share a consumer’s nonpublic personal information with, a
20business, as defined in paragraph (1), unless the institution,
21association, or organization has clearly and conspicuously notified
22the consumer pursuant to subdivision (c), that the nonpublic
23personal information may be disclosed to the business and that the
24alumnus has not directed that the nonpublic personal information
25not be disclosed.

26(3)  The disclosure of alumni names, addresses, and email
27addresses does not include the names, addresses, and email
28addresses of alumni who, pursuant to subdivision (c) or in another
29manner, have directed the regents or an alumni association not to
30disclose their names, addresses, or email addresses.

31(4) Information regarding either of the following is not
32disclosed:

33(A) The current students of the University of California.

34(B) An alumnus who, as a student of a campus of the University
35of California, indicated that, pursuant to the federal Family
36Educational Rights and Privacy Act (Public Law 93-380), he or
37she did not wish his or her name, address, and email address to be
38disclosed.

39(c) (1) The regents or the affected alumni association shall
40satisfy the notice requirements of subdivision (b) if it uses the form
P130  1set forth in paragraph (2). The form set forth in this subdivision
2or a form that complies with subparagraphs (A) to (J), inclusive,
3shall be provided by the regents or the alumni association to the
4alumnus as required in this subdivision, and shall describe the
5nature of the information the alumnus would receive should the
6alumnus choose not to opt out, so that the alumnus may make a
7decision and provide direction to the regents and the alumni
8association regarding the sharing of his or her name, address, and
9email address:

10(A) The form uses the title “IMPORTANT PRIVACY
11CHOICE” and the header, if applicable, as follows: “Restrict
12Information Sharing With Affinity Partners.”

13(B) The titles and headers in the form are clearly and
14conspicuously displayed, and no text in the form is smaller than
1510-point type.

16(C) The form may be provided as a separate document,
17incorporated into another communication piece intended for the
18target audience, or provided through a link to the form located on
19the Internet Web site of the regents, the affected alumni association,
20or the affected auxiliary organization. If the form is provided
21through a link to an Internet Web page, it shall be accompanied
22by the title “IMPORTANT PRIVACY CHOICE” and a clear and
23concise description of the choice that can be made by accessing
24the form. This requirement may be met by using text materially
25similar to the first paragraph of the form set forth in paragraph (2).

26(D) The choice or choices provided in the form are stated
27separately, and may be selected by checking a box.

28(E) The form is designed to call attention to the nature and
29significance of the information in the document.

30(F) The form presents information in clear and concise
31sentences, paragraphs, and sections.

32(G) The form uses short explanatory sentences of an average
33of 15 to 20 words, or bullet lists whenever possible.

34(H) The form avoids multiple negatives, legal terminology, and
35highly technical terminology whenever possible.

36(I) The form avoids explanations that are imprecise and readily
37subject to different interpretations.

38(J) The form is not more than one page.

39(2) The form reads as follows:
40

P131  1IMPORTANT PRIVACY CHOICE

2You have the right to control whether we share your name,
3address, and email address with our affinity partners (companies
4that we partner with to offer products or services to our alumni).
5Please read the following information carefully before you make
6your choice below:

7Your Rights

8You have the following rights to restrict the sharing of your
9name, address, and email address with our affinity partners. This
10form does not prohibit us from sharing your information when we
11are required to do so by law. This includes sending you information
12about the alumni association, the university, or other products or
13services.

14Your Choice

15Restrict Information Sharing With Affinity Partners:

16Unless you say “NO,” we may share your name, address, and
17email address with our affinity partners. Our affinity partners may
18send you offers to purchase various products or services that we
19may have agreed they can offer in partnership with us.

20( ) NO, please do not share my name, address, and email address
21with your affinity partners.

22Time Sensitive Reply

23You may decide at any time that you do not want us to share
24your information with our partners. Your choice marked here will
25remain unless you state otherwise. However, if we do not hear
26from you, we may share your name, address, and email address
27with our affinity partners.

28If you decide that you do not want to receive information from
29our partners, you may do one of the following:

30(1) Call this toll-free telephone number: (xxx-xxx-xxxx).

31(2) Reply electronically by contacting us through the following
32Internet option: xxxxxxxxxxxx.com.

33(3) Fill out, sign, and send back this form to us at the following
34address (you may want to make a copy for your records).

35Xxxxxxxxxxxxxxxxx

36Xxxxxxxxxxxxxxxxx

37Xxxxxxxxxxxxxxxxx

38Name:

39Address:

40Signature:

P132  1

2(3) (A) The regents or the affected alumni association shall not
3be in violation of this subdivision solely because they include in
4the form one or more brief examples or explanations of the purpose
5or purposes for which, or the context within which, names,
6addresses, and email addresses will be shared, as long as those
7examples meet the clarity and readability standards set forth in
8paragraph (1).

9(B) (i) The solicitation to students, upon their graduation, from
10the regents or the alumni association, encouraging students to join
11the alumni association or to avail themselves of the services or
12benefits of the association, shall include the form.

13(ii) The alumni association magazine or newsletter, or both,
14shall include the form on an annual or more frequent basis.

15(iii) The Internet Web site for the alumni association shall
16include a link to the form, which shall be located on either the
17homepage of the association’s Internet Web site or in the
18association’s privacy policy.

19(iv) A one-time mailing to all alumni on the university or college
20mailing list as of January 1, 2006, shall include the form.

21(v) An annual electronic communication to those alumni for
22whom electronic mail addresses are available, shall include the
23form.

24(4) The regents or the affected alumni associations shall provide
25at least two alternative cost-free means for alumni to communicate
26their privacy choice, such as calling a toll-free telephone number,
27or using electronic means. The regents or the alumni association
28shall clearly and conspicuously disclose in the form required by
29this subdivision the information necessary to direct the alumnus
30on how to communicate his or her choices, including the toll-free
31telephone or facsimile number or Internet Web site address that
32may be used, if those means of communication are offered.

33(5) (A) An alumnus may direct at any time that his or her name,
34address, and email address not be disclosed. The regents or the
35affected alumni association shall comply with the direction of an
36alumnus concerning the sharing of his or her name, address, and
37email address within 45 days of receipt by the regents or the alumni
38association. When an alumnus directs that his or her name, address,
39or email address not be disclosed, that direction is in effect until
40otherwise stated by the alumnus.

P133  1(B) This subdivision does not prohibit the disclosure of the
2name, address, or email address of an alumnus as allowed by other
3applicable state laws.

4(6) The regents or the affected alumni association may provide
5a joint notice from the regents or from one or more alumni
6associations, as identified in the notice, so long as the notice is
7accurate with respect to the regents and the alumni association or
8associations participating in the joint notice.

9(d) This section shall not be construed to authorize the release
10of any social security numbers.

11

SEC. 80.  

Section 94925 of the Education Code is amended to
12read:

13

94925.  

(a) The amount in the Student Tuition Recovery Fund
14shall not exceed twenty-five million dollars ($25,000,000) at any
15time.

16(b) If the bureau has temporarily stopped collecting the Student
17Tuition Recovery Fund assessments because the fund has
18approached the twenty-five-million dollar ($25,000,000) limit in
19subdivision (a), the bureau shall resume collecting Student Tuition
20Recovery Fund assessments when the fund falls below twenty
21million dollars ($20,000,000).

22(c) An otherwise eligible student who enrolled during a period
23when institutions were not required to collect Student Tuition
24Recovery Fund assessments is eligible for Student Tuition
25Recovery Fund payments despite not having paid any Student
26 Tuition Recovery Fund assessment.

27

SEC. 81.  

Section 17 of the Elections Code is amended to read:

28

17.  

The Secretary of State shall establish and maintain
29administrative complaint procedures, pursuant to the requirements
30of the federal Help America Vote Act of 2002 (52 U.S.C. Sec.
3121112), in order to remedy grievances in the administration of
32elections. The Secretary of State shall not require that the
33administrative remedies provided in the complaint procedures
34established pursuant to this section be exhausted in order to pursue
35any other remedies provided by state or federal law.

36

SEC. 82.  

Section 1000 of the Elections Code is amended to
37read:

38

1000.  

The established election dates are as follows:

39(a) The second Tuesday of April in each even-numbered year.

P134  1(b) The first Tuesday after the first Monday in March of each
2odd-numbered year.

3(c) The first Tuesday after the first Monday in June in each year.

4(d) The first Tuesday after the first Monday in November of
5each year.

6

SEC. 83.  

Section 1301 of the Elections Code is amended to
7read:

8

1301.  

(a) Except as required by Section 57379 of the
9Government Code, and except as provided in subdivision (b), a
10general municipal election shall be held on an established election
11date pursuant to Section 1000.

12(b) (1) Notwithstanding subdivision (a), a city council may
13enact an ordinance, pursuant to Division 10 (commencing with
14Section 10000), requiring its general municipal election to be held
15on the day of the statewide direct primary election, the day of the
16statewide general election, the day of school district elections as
17set forth in Section 1302, the first Tuesday after the first Monday
18of March in each odd-numbered year, or the second Tuesday of
19April in each year. An ordinance adopted pursuant to this
20subdivision shall become operative upon approval by the county
21board of supervisors.

22(2) In the event of consolidation, the general municipal election
23shall be conducted in accordance with all applicable procedural
24requirements of this code pertaining to that primary, general, or
25school district election, and shall thereafter occur in consolidation
26with that election.

27(c) If a city adopts an ordinance described in subdivision (b),
28the municipal election following the adoption of the ordinance and
29each municipal election thereafter shall be conducted on the date
30specified by the city council, in accordance with subdivision (b),
31unless the ordinance in question is later repealed by the city
32council.

33(d) If the date of a general municipal election is changed
34pursuant to subdivision (b), at least one election shall be held before
35the ordinance, as approved by the county board of supervisors,
36may be subsequently repealed or amended.

37

SEC. 84.  

Section 2142 of the Elections Code is amended to
38read:

39

2142.  

(a) If the county elections official refuses to register a
40qualified elector in the county, the elector may proceed by action
P135  1in the superior court to compel his or her registration. In an action
2under this section, as many persons may join as plaintiffs as have
3causes of action.

4(b) If the county elections official has not registered a qualified
5elector who claims to have registered to vote through the
6Department of Motor Vehicles or any other public agency
7designated as a voter registration agency pursuant to the federal
8National Voter Registration Act of 1993 (52 U.S.C. Sec. 20501 et
9seq.), the elector may proceed by action in the superior court to
10compel his or her registration. In an action under this section, as
11many persons may join as plaintiffs as have causes of action.

12(c) No fee shall be charged by the clerk of the court for services
13rendered in an action under this section.

14

SEC. 85.  

Section 2150 of the Elections Code, as amended by
15Section 4.5 of Chapter 736 of the Statutes of 2015, is amended to
16read:

17

2150.  

(a) The affidavit of registration shall show:

18(1) The facts necessary to establish the affiant as an elector.

19(2) The affiant’s name at length, including his or her given
20name, and a middle name or initial, or if the initial of the given
21name is customarily used, then the initial and middle name. The
22affiant’s given name may be preceded, at the affiant’s option, by
23the designation of “Miss,” “Ms.,” “Mrs.,” or “Mr.” A person shall
24not be denied the right to register because of his or her failure to
25mark a prefix to the given name and shall be so advised on the
26voter registration card. This subdivision shall not be construed as
27requiring the printing of prefixes on an affidavit of registration.

28(3) The affiant’s place of residence, residence telephone number,
29if furnished, and email address, if furnished. A person shall not be
30denied the right to register because of his or her failure to furnish
31a telephone number or email address, and shall be so advised on
32the voter registration card.

33(4) The affiant’s mailing address, if different from the place of
34residence.

35(5) The affiant’s date of birth to establish that he or she will be
36at least 18 years of age on or before the date of the next election.

37(6) The state or country of the affiant’s birth.

38(7) (A) In the case of an affiant who has been issued a current
39and valid driver’s license, the affiant’s driver’s license number.

P136  1(B) In the case of any other affiant, other than an affiant to whom
2subparagraph (C) applies, the last four digits of the affiant’s social
3security number.

4(C) If a voter registration affiant has not been issued a current
5and valid driver’s license or a social security number, the state
6shall assign the applicant a number that will serve to identify the
7affiant for voter registration purposes. If the state has a
8computerized list in effect under this paragraph and the list assigns
9unique identifying numbers to registrants, the number assigned
10under this subparagraph shall be the unique identifying number
11assigned under the list.

12(8) The affiant’s political party preference.

13(9) That the affiant is currently not imprisoned or on parole for
14the conviction of a felony.

15(10) A prior registration portion indicating if the affiant has
16been registered at another address, under another name, or as
17preferring another party. If the affiant has been so registered, he
18or she shall give an additional statement giving that address, name,
19or party.

20(b) The affiant shall certify the content of the affidavit of
21registration as to its truthfulness and correctness, under penalty of
22perjury, with the signature of his or her name and the date of
23signing. If the affiant is unable to write, he or she shall sign with
24a mark or cross. An affiant who is an individual with a disability
25may complete the affidavit with reasonable accommodations as
26needed.

27(c) The affidavit of registration shall also contain a space that
28would enable the affiant to state his or her ethnicity or race, or
29both. An affiant shall not be denied the ability to register because
30he or she declines to state his or her ethnicity or race.

31(d) If a person assists the affiant in completing the affidavit of
32registration, that person shall sign and date the affidavit below the
33signature of the affiant.

34(e) The affidavit of registration shall also contain a space to
35permit the affiant to apply for permanent vote by mail status.

36(f) The Secretary of State may continue to supply existing
37affidavits of registration to county elections officials before printing
38new or revised forms that reflect the changes made to this section
39by Chapter 508 of the Statutes of 2007.

P137  1

SEC. 86.  

Section 2155 of the Elections Code is amended to
2read:

3

2155.  

Upon receipt of a properly executed affidavit of
4registration or address correction notice or letter pursuant to Section
52119, Article 2 (commencing with Section 2220), or the federal
6National Voter Registration Act of 1993 (52 U.S.C. Sec. 20501 et
7seq.), the county elections official shall send the voter a voter
8notification by nonforwardable, first-class mail, address correction
9requested. The voter notification shall state the party preference
10for which the voter has registered in the following format:

11Party: (Name of political party)

12The voter notification shall be substantially in the following
13form:

14
15VOTER NOTIFICATION
16

17You are registered to vote. The party preference you chose, if
18any, is on this card. This card is being sent as a notification of:

191. Your recently completed affidavit of registration.

20
21OR,
22

232. A change to your registration because of an official notice
24that you have moved. If your residence address has not changed
25or if your move is temporary, please call or write to our office
26immediately.

27
28OR,
29

303. Your recent registration with a change in party preference.
31If this change is not correct, please call or write to our office
32immediately.


33

 

   

P137 35P137  3

 

36You may vote in any election held 15 or more days after the date
37on this card.

38Your name will appear on the index kept at the polls.

39Please contact our office if the information shown on the reverse
40side of this card is incorrect.

 

   

(Signature of Voter)

 

4

SEC. 87.  

Section 2196 of the Elections Code, as amended by
5Section 54 of Chapter 728 of the Statutes of 2015, is amended to
6read:

7

2196.  

(a) (1) Notwithstanding any other law, a person who
8is qualified to register to vote and who has a valid California
9driver’s license or state identification card may submit an affidavit
10of voter registration electronically on the Internet Web site of the
11Secretary of State.

12(2) An affidavit submitted pursuant to this section is effective
13upon receipt of the affidavit by the Secretary of State if the affidavit
14is received on or before the last day to register for an election to
15be held in the precinct of the person submitting the affidavit.

16(3) The affiant shall affirmatively attest to the truth of the
17information provided in the affidavit.

18(4) For voter registration purposes, the applicant shall
19affirmatively assent to the use of his or her signature from his or
20her driver’s license or state identification card.

21(5) For each electronic affidavit, the Secretary of State shall
22obtain an electronic copy of the applicant’s signature from his or
23her driver’s license or state identification card directly from the
24Department of Motor Vehicles.

25(6) The Secretary of State shall require a person who submits
26an affidavit pursuant to this section to submit all of the following:

27(A) The number from his or her California driver’s license or
28state identification card.

29(B) His or her date of birth.

30(C) The last four digits of his or her social security number.

31(D) Any other information the Secretary of State deems
32necessary to establish the identity of the affiant.

33(7) Upon submission of an affidavit pursuant to this section, the
34electronic voter registration system shall provide for immediate
35verification of both of the following:

36(A) That the applicant has a California driver’s license or state
37identification card and that the number for that driver’s license or
38identification card provided by the applicant matches the number
39for that person’s driver’s license or identification card that is on
40file with the Department of Motor Vehicles.

P139  1(B) That the date of birth provided by the applicant matches the
2date of birth for that person that is on file with the Department of
3Motor Vehicles.

4(8) The Secretary of State shall employ security measures to
5ensure the accuracy and integrity of affidavits of voter registration
6submitted electronically pursuant to this section.

7(b) The Department of Motor Vehicles shall use the electronic
8voter registration system required by this section to comply with
9its duties and responsibilities as a voter registration agency pursuant
10to the federal National Voter Registration Act of 1993 (52 U.S.C.
11Sec. 20501 et seq.).

12(c) The Department of Motor Vehicles and the Secretary of
13State shall maintain a process and the infrastructure to allow the
14electronic copy of the applicant’s signature and other information
15required under this section that is in the possession of the
16 department to be transferred to the Secretary of State and to the
17county election management systems to allow a person who is
18qualified to register to vote in California to register to vote under
19this section.

20(d) If an applicant cannot electronically submit the information
21required pursuant to paragraph (6) of subdivision (a), he or she
22shall nevertheless be able to complete the affidavit of voter
23registration electronically on the Secretary of State’s Internet Web
24site, print a hard copy of the completed affidavit, and mail or
25deliver the hard copy of the completed affidavit to the Secretary
26of State or the appropriate county elections official.

27

SEC. 88.  

Section 2250 of the Elections Code is amended to
28read:

29

2250.  

On and after July 1, 2007, in any document mailed by a
30state agency that offers a person the opportunity to register to vote
31pursuant to the federal National Voter Registration Act of 1993
32(52 U.S.C. Sec. 20501 et seq.) that state agency shall include a
33notice informing prospective voters that if they have not received
34voter registration information within 30 days of requesting it, they
35should contact their local elections office or the office of the
36Secretary of State.

37

SEC. 89.  

Section 2263 of the Elections Code is amended to
38read:

39

2263.  

(a) The Department of Motor Vehicles, in consultation
40with the Secretary of State, shall establish a schedule and method
P140  1for the department to electronically provide to the Secretary of
2State the records specified in this section.

3(b) (1) The department shall provide to the Secretary of State,
4in a manner and method to be determined by the department in
5consultation with the Secretary of State, the following information
6associated with each person who submits an application for a
7driver’s license or identification card pursuant to Section 12800,
812815, or 13000 of the Vehicle Code, or who notifies the
9department of a change of address pursuant to Section 14600 of
10the Vehicle Code:

11(A) Name.

12(B) Date of birth.

13(C) Either or both of the following, as contained in the
14department’s records:

15(i) Residence address.

16(ii) Mailing address.

17(D) Digitized signature, as described in Section 12950.5 of the
18Vehicle Code.

19(E) Telephone number, if available.

20(F) Email address, if available.

21(G) Language preference.

22(H) Political party preference.

23(I) Whether the person chooses to become a permanent vote by
24mail voter.

25(J) Whether the person affirmatively declined to become
26registered to vote during a transaction with the department.

27(K) A notation that the applicant has attested that he or she
28meets all voter eligibility requirements, including United States
29citizenship, specified in Section 2101.

30(L) Other information specified in regulations implementing
31this chapter.

32(2) (A) The department may provide the records described in
33paragraph (1) to the Secretary of State before the Secretary of State
34certifies that all of the conditions set forth in subdivision (e) of
35this section have been satisfied. Records provided pursuant to this
36paragraph shall only be used for purposes of outreach and education
37to eligible voters conducted by the Secretary of State.

38(B) The Secretary shall provide materials created for purposes
39of outreach and education as described in this paragraph in
P141  1languages other than English, as required by the federal Voting
2Rights Act of 1965 (52 U.S.C. Sec. 10503).

3(c) The Secretary of State shall not sell, transfer, or allow any
4third party access to the information acquired from the Department
5of Motor Vehicles pursuant to this chapter without approval of the
6department, except as permitted by this chapter and Section 2194.

7(d) The department shall not electronically provide records of
8a person who applies for or is issued a driver’s license pursuant to
9Section 12801.9 of the Vehicle Code because he or she is unable
10to submit satisfactory proof that his or her presence in the United
11States is authorized under federal law.

12(e) The Department of Motor Vehicles shall commence
13implementation of this section no later than one year after the
14Secretary of State certifies all of the following:

15(1) The State has a statewide voter registration database that
16complies with the requirements of the federal Help America Vote
17Act of 2002 (52 U.S.C. Sec. 20901 et seq.).

18(2) The Legislature has appropriated the funds necessary for
19the Secretary of State and the Department of Motor Vehicles to
20implement and maintain the California New Motor Voter Program.

21(3) The regulations required by Section 2270 have been adopted.

22(f) The Department of Motor Vehicles shall not electronically
23provide records pursuant to this section that contain a home address
24designated as confidential pursuant to Section 1808.2, 1808.4, or
251808.6 of the Vehicle Code.

26

SEC. 90.  

Section 2265 of the Elections Code is amended to
27read:

28

2265.  

(a)  The records of a person designated in paragraph (1)
29of subdivision (b) of Section 2263 shall constitute a completed
30affidavit of registration and the Secretary of State shall register
31the person to vote, unless any of the following conditions are
32satisfied:

33(1) The person’s records, as described in Section 2263, reflect
34that he or she affirmatively declined to become registered to vote
35during a transaction with the Department of Motor Vehicles.

36(2) The person’s records, as described in Section 2263, do not
37reflect that he or she has attested to meeting all voter eligibility
38requirements specified in Section 2101.

39(3) The Secretary of State determines that the person is ineligible
40to vote.

P142  1(b) (1) If a person who is registered to vote pursuant to this
2chapter does not provide a party preference, his or her party
3preference shall be designated as “Unknown” and he or she shall
4be treated as a “No Party Preference” voter.

5(2) A person whose party preference is designated as
6“Unknown” pursuant to this subdivision shall not be counted for
7purposes of determining the total number of voters registered on
8the specified day preceding an election, as required by subdivision
9(b) of Section 5100 and subdivision (c) of Section 5151.

10

SEC. 91.  

Section 2270 of the Elections Code is amended to
11read:

12

2270.  

The Secretary of State shall adopt regulations to
13implement this chapter, including regulations addressing both of
14the following:

15(a) A process for canceling the registration of a person who is
16ineligible to vote, but became registered under the California New
17Motor Voter Program in the absence of any violation by that person
18of Section 18100.

19(b) An education and outreach campaign informing voters about
20the California New Motor Voter Program that the Secretary of
21State will conduct to implement this chapter. The Secretary of
22State may use any public and private funds available for this and
23shall provide materials created for this outreach and education
24campaign in languages other than English, as required by the
25federal Voting Rights Act of 1965 (52 U.S.C. Sec. 10503).

26

SEC. 92.  

Section 2600 of the Elections Code is amended to
27read:

28

2600.  

The Secretary of State shall establish a Language
29Accessibility Advisory Committee which shall meet no less than
30four times each calendar year. The committee shall consist of no
31less than 15 members and be comprised of the Secretary of State
32and his or her designee or designees and additional members
33appointed by the Secretary of State. The appointees shall have
34demonstrated language accessibility experience, have knowledge
35of presenting election materials to voters using plain language
36methods or another method that is easy for voters to access and
37understand, or be a county elections official or his or her designee.
38At least three county elections officials shall be appointed to the
39committee. The Secretary of State shall consult with and consider
P143  1the recommendations of the committee. The committee shall serve
2in an advisory capacity to the Secretary of State.

3

SEC. 93.  

Section 3025 of the Elections Code is amended to
4read:

5

3025.  

(a) For purposes of this section, the following terms
6have the following meanings:

7(1) “Vote by mail ballot drop box” means a secure receptacle
8established by a county or city and county elections official
9whereby a voted vote by mail ballot may be returned to the
10elections official from whom it was obtained.

11(2) “Vote by mail ballot drop-off location” means a location
12consisting of a secured vote by mail ballot drop box at which a
13voted vote by mail ballot may be returned to the elections official
14from whom it was obtained.

15(b) On or before January 1, 2017, the Secretary of State shall
16promulgate regulations establishing guidelines based on best
17practices for security measures and procedures, including, but not
18limited to, chain of custody, pick-up times, proper labeling, and
19security of vote by mail ballot drop boxes, that a county elections
20official may use if the county elections official establishes one or
21more vote by mail ballot drop-off locations.

22

SEC. 94.  

Section 3114 of the Elections Code is amended to
23read:

24

3114.  

(a) For an election for which this state has not received
25a waiver pursuant to the federal Military and Overseas Voter
26Empowerment Act (52 U.S.C. Sec. 20301 et seq.), not sooner than
2760 days but not later than 45 days before the election, the elections
28official shall transmit a ballot and balloting materials to each
29military or overseas voter who, by that date, submits a valid ballot
30application pursuant to Section 3102.

31(b) If a valid ballot application from a military or overseas voter
32arrives after the 45th day before the election, the elections official
33charged with distributing a ballot and balloting materials to that
34voter shall transmit them to the voter as soon as practicable after
35the application arrives.

36

SEC. 95.  

Section 6850 of the Elections Code is amended to
37read:

38

6850.  

This chapter applies to the presidential preference
39primary ballot of the Green Party only. As used in this chapter,
40“Green Party” means the Green Party of California.

P144  1

SEC. 96.  

Section 6850.5 of the Elections Code is amended to
2read:

3

6850.5.  

The Green Party presidential preference primary ballot
4shall express the presidential preference of California voters who
5vote in the Green Party presidential preference primary election.
6National convention delegates shall be selected as provided for in
7the bylaws and the rules and procedures of the Green Party and
8pursuant to the rules of the national political party with which the
9Green Party is affiliated.

10

SEC. 97.  

The heading of Article 2 (commencing with Section
116851) of Chapter 5 of Part 1 of Division 6 of the Elections Code
12 is amended to read:

13 

14Article 2.  Qualification of Candidates for Presidential Preference
15Primary Ballot
16

 

17

SEC. 98.  

Section 6851 of the Elections Code is amended to
18read:

19

6851.  

The Secretary of State shall place the name of a candidate
20upon the Green Party presidential preference primary ballot when
21the Secretary of State has determined that the candidate is generally
22advocated for or recognized throughout the United States or
23California as actively seeking the presidential nomination of the
24Green Party or the national political party with which the Green
25Party is affiliated.

26

SEC. 99.  

Section 6853 of the Elections Code is amended to
27read:

28

6853.  

If a selected candidate or an unselected candidate files
29with the Secretary of State, no later than the 68th day before the
30presidential primary election, an affidavit stating without
31qualification that she or he is not a candidate for the office of
32President of the United States at the forthcoming presidential
33primary election, the name of that candidate shall be omitted from
34the list of names certified by the Secretary of State to the elections
35official for the ballot and the name of that candidate shall not
36appear on the presidential preference primary ballot.

37

SEC. 100.  

Section 6854 of the Elections Code is amended to
38read:

39

6854.  

This article applies to the nomination of a Green Party
40candidate for the presidential preference primary ballot.

P145  1

SEC. 101.  

Section 6854.5 of the Elections Code is amended
2to read:

3

6854.5.  

Nomination papers properly prepared, circulated,
4signed, and verified shall be left, for examination, with the elections
5official of the county in which they are circulated at least 74 days
6before the presidential preference primary election.

7

SEC. 102.  

Section 6855 of the Elections Code is amended to
8read:

9

6855.  

Each signer of a nomination paper for the presidential
10preference primary ballot may sign only one paper. The signer
11shall add her or his printed name and place of residence indicating
12city and giving the street and number, if any.

13

SEC. 103.  

Section 6857 of the Elections Code is amended to
14read:

15

6857.  

The nomination paper for a candidate for the presidential
16preference primary ballot shall be in substantially the following
17form:


18

 

SECTION OF NOMINATION PAPER SIGNED BY VOTER ON
BEHALF OF PRESIDENTIAL PREFERENCE PRIMARY CANDIDATE

 

Section ____________ Page ____________

 

County of __________.

Nomination paper of a presidential preference candidate for the Green Party presidential preference primary ballot.

 

State of California

County of    

 ⎱

ss.

 

SIGNER’S STATEMENT

 

 I, the undersigned, am a voter of the County of ____________, State of California, and am registered as preferring the Green Party. I hereby nominate ____________ for the presidential preference portion of the Green Party’s presidential primary ballot, to be voted for at the presidential preference primary to be held on the____________ day of ____________, 20____. I have not signed the nomination paper of any other candidate for the same office.

 

Number_________Signature_________Printed name_________Residence 

   

1.    

2.    

3.    

etc.

 

CIRCULATOR’S DECLARATION

 

 I, ________, affirm all of the following:

 1. That I am 18 years of age or older.

2.That my residence address, including street number, is
   

.
   [If no street or number exists, a designation of my residence adequate to readily ascertain its location is
______.]

 3. That I secured signatures in the County of ________ to the nomination paper of a candidate in the presidential preference primary of the Green Party, that all the signatures on this section of the nomination paper numbered from 1 to ______, inclusive, were made in my presence, that the signatures were obtained between ____________, 20__, and ____________, 20__, and that to the best of my knowledge and belief each signature is the genuine signature of the person whose name it purports to be.

I declare under penalty of perjury that the foregoing is true and correct.

Executed at ________, California, this ____ day of ____, 20__.

[Signed] ______________________________

Circulator

[Printed Name] _____________________________

 

36

SEC. 104.  

Section 6859 of the Elections Code is amended to
37read:

38

6859.  

Within five days after any nomination papers are left
39with the elections official for examination, the elections official
40shall do both of the following:

P147  1(a) Examine and affix to the nomination papers a certificate
2reciting that she or he has examined them and stating the number
3of names that have not been marked “not sufficient.”

4(b) Transmit the nomination papers with the certificate of
5examination to the Secretary of State, who shall file the papers.

6

SEC. 105.  

Section 6861.5 of the Elections Code is amended
7to read:

8

6861.5.  

For the presidential preference primary election, the
9format of the Green Party ballot shall be governed by Chapter 2
10(commencing with Section 13100) of Division 13, with the
11following exceptions:

12(a) The heading “Presidential Candidate Preference” shall be
13included.

14(b) Selected and unselected presidential candidates shall be
15listed below the heading specified in subdivision (a).

16(c) The instructions to voters shall begin with the words “Vote
17for a candidate.” The instructions to voters shall also include the
18statement that “Delegates to the national convention will be
19selected after the presidential preference primary election.”

20

SEC. 106.  

Section 6862 of the Elections Code is amended to
21read:

22

6862.  

A person who believes her or his name may be used as
23a write-in candidate for President of the United States shall, no
24later than 21 days before the presidential preference primary
25election, file an endorsement of her or his write-in candidacy with
26the Secretary of State, or no votes shall be counted for that write-in
27candidate.

28

SEC. 107.  

Section 6863 of the Elections Code is amended to
29read:

30

6863.  

The number of delegates to be selected following the
31presidential preference primary election shall be the number
32established by the national political party with which the Green
33Party is affiliated.

34

SEC. 108.  

Section 7901 of the Elections Code is amended to
35read:

36

7901.  

At each presidential preference primary election,
37members of central committees, which shall be termed “county
38councils,” shall be elected in each county.

39

SEC. 109.  

Section 7902 of the Elections Code is amended to
40read:

P148  1

7902.  

For purposes of this chapter, the registration figures used
2shall be those taken from the statement of voters and their political
3preferences transmitted by the elections officials to the Secretary
4of State on or before March 1 of the odd-numbered year preceding
5the next presidential preference primary election.

6

SEC. 110.  

Section 7903 of the Elections Code is amended to
7read:

8

7903.  

The number of members of the county council to be
9elected in a county shall be a minimum of three and a maximum
10of 50, and the process in which each county’s number shall be
11calculated shall be defined in the Green Party’s bylaws and, to be
12effective, shall be communicated to the Secretary of State by the
13Green Party Liaison to the Secretary of State no later than 175
14days before the next presidential preference primary election.

15

SEC. 111.  

Section 7904 of the Elections Code is amended to
16read:

17

7904.  

At its first meeting following the presidential preference
18primary election and at subsequent meetings, a county council
19may appoint additional members to the county council to fill any
20vacancy.

21

SEC. 112.  

Section 7911 of the Elections Code is amended to
22read:

23

7911.  

Members of county councils shall be elected from one
24or more multimember districts. Multimember districts shall
25conform to the county boundaries or recognized jurisdictional
26boundaries of Congressional, State Assembly, State Senate, or
27Supervisorial districts within that county, in accordance with state
28Green Party bylaws and county Green Party bylaws.

29

SEC. 113.  

Section 7912 of the Elections Code is amended to
30read:

31

7912.  

The Secretary of State, no later than the 175th day before
32the presidential preference primary election, shall compute the
33number of members of a county council to be elected in each
34county and shall mail a certificate to that effect to the elections
35official of each county and to the Green Party Liaison to the
36Secretary of State.

37

SEC. 114.  

Section 7913 of the Elections Code is amended to
38read:

39

7913.  

The elections official, no later than the 172nd day before
40the presidential preference primary election, shall compute the
P149  1number of members of a county council to be elected in each
2district if the election of the members is to be by district pursuant
3to this chapter.

4

SEC. 115.  

Section 7918 of the Elections Code is amended to
5read:

6

7918.  

Notwithstanding any other provision of this code, each
7sponsor is entitled to sponsor as many candidates as there are seats
8in the county council election district. Candidate names listed on
9a single sponsor’s certificate, and the signatures on the certificate
10shall count toward the sponsor requirement of each and every
11candidate whose name is listed on the certificate. The number of
12candidates having their names on a sponsor’s certificate shall not
13exceed the number of members of a county council to be elected
14in the district.

15

SEC. 116.  

Section 7921 of the Elections Code is amended to
16read:

17

7921.  

The office of member of county council shall be placed
18on the presidential preference primary ballot under the heading
19“Party County Council” in the place and manner designated for
20the office of county central committee pursuant to Chapter 2
21(commencing with Section 13100) of Division 13. The subheading
22printed under party central committees on the presidential
23preference primary ballot shall be in substantially the following
24form: Member of Green Party County Council, ___the __________
25District or Member of the Green Party County Council, _______
26County.

27

SEC. 117.  

Section 7922 of the Elections Code is amended to
28read:

29

7922.  

Except as otherwise provided in this section, the votes
30cast for each candidate for member of county council shall be
31included in the canvass and statement of results in a manner similar
32to the vote for each candidate for county central committees
33pursuant to Division 15 (commencing with Section 15000), and
34specifically:

35(a) The final total of votes cast for each candidate for member
36of county council, including the name, address, and ballot
37designation of each candidate, and a specification as to which
38candidates were declared elected shall be certified to the Secretary
39of State without delay upon completion of the official canvass.
P150  1The county clerk shall simultaneously send one copy of this final
2certification to the Green Party Liaison to the Secretary of State.

3(b) As soon as practicable after the presidential preference
4primary election, the Secretary of State shall prepare a certified
5list, by county, of all elected Green Party members of county
6councils, including their addresses and primary election ballot
7designations. The Secretary of State shall send copies of the list
8to the registrar of voters in each county no later than 45 days
9following the presidential preference primary election. This list
10shall be maintained for public inspection by the registrars of voters
11in each county until a subsequent list is received.

12(c) The Secretary of State, no later than 45 days following the
13presidential preference primary election, shall send a notice by
14mail to each of the elected members of county councils that informs
15the person that she or he has been elected as a member of the
16county council. The Secretary of State shall send a copy of the
17 certified list of all elected members of all county councils to the
18Green Party Liaison to the Secretary of State.

19

SEC. 118.  

Section 7927 of the Elections Code is amended to
20read:

21

7927.  

(a) The state coordinating committee shall have the
22authority to certify, as provided by Green Party bylaws, county
23council members in the following counties:

24(1) Counties where no county council candidates qualified for
25the ballot in the preceding presidential preference primary election.

26(2) Counties where all members of the county council have
27become disqualified from holding office.

28(b) County council members certified pursuant to this section
29shall meet the qualifications otherwise required for county council
30members. County council members certified pursuant to this
31section shall be reported by the state coordinating committee to
32the applicable county elections officials. County council members
33certified under this section shall have all the powers and privileges
34otherwise afforded to county councils.

35

SEC. 119.  

Section 12309.5 of the Elections Code is amended
36to read:

37

12309.5.  

(a) No later than June 30, 2005, the Secretary of State
38shall adopt uniform standards for the training of precinct board
39members, based upon the recommendations of the task force
P151  1appointed pursuant to subdivision (b). The uniform standards shall,
2at a minimum, address the following:

3(1) The rights of voters, including, but not limited to, language
4access rights for linguistic minorities, the disabled, and protected
5classes as referenced and defined in the federal Voting Rights Act
6of 1965 (52 U.S.C. Sec. 10301 et seq.).

7(2) Election challenge procedures such as challenging precinct
8administrator misconduct, fraud, bribery, or discriminatory voting
9procedures as referenced and defined in the federal Voting Rights
10Act of 1965 (52 U.S.C. Sec. 10301 et seq.).

11(3) Operation of a jurisdiction’s voting system, including, but
12not limited to, modernized voting systems, touch-screen voting,
13and proper tabulation procedures.

14(4) Poll hours and procedures concerning the opening and
15closing of polling locations on election day. Procedures shall be
16developed that, notwithstanding long lines or delays at a polling
17location, ensure all eligible voters who arrive at the polling location
18before closing time are allowed to cast a ballot.

19(5) Relevant election laws and any other subjects that will assist
20an inspector in carrying out his or her duties.

21(6) Cultural competency, including, but not limited to, having
22adequate knowledge of diverse cultures, including languages, that
23may be encountered by a poll worker during the course of an
24election, and the appropriate skills to work with the electorate.

25(7) Knowledge regarding issues confronting voters who have
26disabilities, including, but not limited to, access barriers and the
27need for reasonable accommodations.

28(8) Procedures involved with provisional, fail-safe provisional,
29vote by mail, and provisional vote by mail voting.

30(b) The Secretary of State shall appoint a task force of at least
3112 members who have experience in the administration of elections
32and other relevant backgrounds to study and recommend uniform
33guidelines for the training of precinct board members. The task
34force shall consist of the chief elections officer of the two largest
35counties, the two smallest counties, and two county elections
36officers selected by the Secretary of State, or their designees. The
37Secretary of State shall appoint at least six other members who
38have elections expertise, or their designees, including members of
39community-based organizations that may include citizens familiar
40with different ethnic, cultural, and disabled populations to ensure
P152  1that the task force is representative of the state’s diverse electorate.
2The task force shall make its recommendations available for public
3review and comment before the submission of the
4recommendations to the Secretary of State and the Legislature.

5(c) The task force shall file its recommendations with the
6Secretary of State and the Legislature no later than January 1,
72005.

8

SEC. 120.  

Section 13307 of the Elections Code is amended to
9read:

10

13307.  

(a) (1) Each candidate for nonpartisan elective office
11in any local agency, including any city, county, city and county,
12or district, may prepare a candidate’s statement on an appropriate
13form provided by the elections official. The statement may include
14the name, age, and occupation of the candidate and a brief
15description, of no more than 200 words, of the candidate’s
16education and qualifications expressed by the candidate himself
17or herself. However, the governing body of the local agency may
18authorize an increase in the limitations on words for the statement
19from 200 to 400 words. The statement shall not include the party
20affiliation of the candidate, nor membership or activity in partisan
21political organizations.

22(2) The statement authorized by this subdivision shall be filed
23in the office of the elections official when the candidate’s
24nomination papers are returned for filing, if it is for a primary
25election, or for an election for offices for which there is no primary.
26The statement shall be filed in the office of the elections official
27no later than the 88th day before the election, if it is for an election
28for which nomination papers are not required to be filed. If a runoff
29election or general election occurs within 88 days of the primary
30or first election, the statement shall be filed with the elections
31official by the third day following the governing body’s declaration
32of the results from the primary or first election.

33(3) Except as provided in Section 13309, the statement may be
34withdrawn, but not changed, during the period for filing nomination
35papers and until 5 p.m. of the next working day after the close of
36the nomination period.

37(b) (1) The elections official shall send to each voter, together
38with the sample ballot, a voter’s pamphlet that contains the written
39statements of each candidate that is prepared pursuant to this
P153  1section. The statement of each candidate shall be printed in type
2of uniform size and darkness, and with uniform spacing.

3(2) The elections official shall provide a Spanish translation to
4those candidates who wish to have one, and shall select a person
5to provide that translation who is one of the following:

6(A) A certified and registered interpreter on the Judicial Council
7Master List.

8(B) An interpreter categorized as “certified” or “professionally
9qualified” by the Administrative Office of the United States Courts.

10(C) From an institution accredited by a regional or national
11accrediting agency recognized by the United States Secretary of
12Education.

13(D) A current voting member in good standing of the American
14Translators Association.

15(E) A current member in good standing of the American
16Association of Language Specialists.

17(c) The local agency may estimate the total cost of printing,
18handling, translating, and mailing the candidate’s statements filed
19pursuant to this section, including costs incurred as a result of
20complying with the federal Voting Rights Act of 1965, as amended.
21The local agency may require each candidate filing a statement to
22pay in advance to the local agency his or her estimated pro rata
23share as a condition of having his or her statement included in the
24voter’s pamphlet. If an estimated payment is required, the receipt
25for the payment shall include a written notice that the estimate is
26just an approximation of the actual cost that varies from one
27election to another election and may be significantly more or less
28than the estimate, depending on the actual number of candidates
29filing statements. Accordingly, the local agency is not bound by
30the estimate and may, on a pro rata basis, bill the candidate for
31additional actual expense or refund any excess paid depending on
32the final actual cost. In the event of underpayment, the local agency
33may require the candidate to pay the balance of the cost incurred.
34In the event of overpayment, the local agency that, or the elections
35official who, collected the estimated cost shall prorate the excess
36amount among the candidates and refund the excess amount paid
37within 30 days of the election.

38(d) This section shall not be deemed to make any statement, or
39the authors thereof, free or exempt from any civil or criminal action
P154  1or penalty because of any false, slanderous, or libelous statements
2offered for printing or contained in the voter’s pamphlet.

3(e) Before the nominating period opens, the local agency for
4that election shall determine whether a charge shall be levied
5against that candidate for the candidate’s statement sent to each
6voter. This decision shall not be revoked or modified after the
7seventh day before the opening of the nominating period. A written
8statement of the regulations with respect to charges for handling,
9packaging, and mailing shall be provided to each candidate or his
10or her representative at the time he or she picks up the nomination
11papers.

12(f) For purposes of this section and Section 13310, the board of
13supervisors shall be deemed the governing body of judicial
14 elections.

15

SEC. 121.  

Section 14026 of the Elections Code is amended to
16read:

17

14026.  

As used in this chapter:

18(a) “At-large method of election” means any of the following
19methods of electing members to the governing body of a political
20subdivision:

21(1) One in which the voters of the entire jurisdiction elect the
22members to the governing body.

23(2) One in which the candidates are required to reside within
24given areas of the jurisdiction and the voters of the entire
25jurisdiction elect the members to the governing body.

26(3) One that combines at-large elections with district-based
27elections.

28(b) “District-based elections” means a method of electing
29members to the governing body of a political subdivision in which
30the candidate must reside within an election district that is a
31divisible part of the political subdivision and is elected only by
32voters residing within that election district.

33(c) “Political subdivision” means a geographic area of
34representation created for the provision of government services,
35including, but not limited to, a general law city, general law county,
36charter city, charter county, charter city and county, school district,
37community college district, or other district organized pursuant to
38state law.

39(d) “Protected class” means a class of voters who are members
40of a race, color, or language minority group, as this class is
P155  1referenced and defined in the federal Voting Rights Act of 1965
2(52 U.S.C. Sec. 10301 et seq.).

3(e) “Racially polarized voting” means voting in which there is
4a difference, as defined in case law regarding enforcement of the
5federal Voting Rights Act of 1965 (52 U.S.C. Sec. 10301 et seq.),
6in the choice of candidates or other electoral choices that are
7preferred by voters in a protected class, and in the choice of
8candidates and electoral choices that are preferred by voters in the
9rest of the electorate. The methodologies for estimating group
10voting behavior as approved in applicable federal cases to enforce
11the federal Voting Rights Act of 1965 (52 U.S.C. Sec. 10301 et
12seq.) to establish racially polarized voting may be used for purposes
13of this section to prove that elections are characterized by racially
14polarized voting.

15

SEC. 122.  

Section 14405 of the Elections Code is amended to
16read:

17

14405.  

(a) The members of the precinct board shall account
18for the ballots delivered to them by returning a sufficient number
19of unused ballots to make up, when added to the number of official
20ballots cast and the number of spoiled and canceled ballots
21returned, the number of ballots given to them. The accounting of
22ballots may either:

23(1) Take place at the polling place.

24(2) Be performed by the county elections official at the central
25counting place.

26(b) The precinct board shall complete the roster as required in
27Section 14107, and shall also complete and sign the certificate of
28performance prescribed in Section 15280, if that section applies.

29

SEC. 123.  

Section 18108 of the Elections Code is amended to
30read:

31

18108.  

(a) Except as provided in subdivision (c), a person who
32receives money or other valuable consideration to assist another
33to register to vote by receiving the completed affidavit of
34registration from the elector, and fails to comply with Section
352159, is guilty of a misdemeanor, and shall be punished by a fine
36not exceeding one thousand dollars ($1,000), or by imprisonment
37in the county jail not exceeding six months or if the failure to
38comply is found to be willful, not exceeding one year, or both.

39(b) A person who receives money or other valuable
40consideration to assist another to register to vote by receiving the
P156  1completed affidavit of registration from the elector, upon a third
2or subsequent conviction, on charges brought and separately tried,
3for failure to comply with Section 2159 shall be punished by a fine
4not exceeding ten thousand dollars ($10,000), or by imprisonment
5in the county jail not to exceed one year, or both.

6(c) This section does not apply to a public agency or its
7employees that is designated as a voter registration agency pursuant
8to the federal National Voter Registration Act of 1993 (52 U.S.C.
9Sec. 20501 et seq.), if an elector asks for assistance to register to
10vote during the course and scope of the agency’s normal business.

11

SEC. 124.  

Section 18108.1 of the Elections Code is amended
12to read:

13

18108.1.  

(a) Except as provided in subdivision (c), a person
14who receives money or other valuable consideration to assist
15another to register to vote by receiving the completed affidavit of
16registration from the elector, and knowingly misrepresents himself
17or herself as having helped register another to vote on a registration
18form, pursuant to Section 2159, is guilty of a misdemeanor, and
19shall be punished by a fine not exceeding one thousand dollars
20($1,000), by imprisonment in the county jail not exceeding six
21months, or by both the fine and imprisonment.

22(b) A person who receives money or other valuable
23consideration to assist another to register to vote by receiving the
24completed affidavit of registration from the elector, upon a third
25or subsequent conviction, on charges brought and separately tried,
26for misrepresenting himself or herself as having helped register
27another to vote on a registration form, pursuant to Section 2159,
28shall be punished by a fine not exceeding ten thousand dollars
29($10,000), by imprisonment in the county jail not to exceed one
30year, or by both the fine and imprisonment.

31(c) This section does not apply to a public agency or its
32employees that is designated as a voter registration agency pursuant
33to the federal National Voter Registration Act of 1993 (52 U.S.C.
34Sec. 20501 et seq.), if an elector asks for assistance to register to
35vote during the course and scope of the agency’s normal business.

36

SEC. 125.  

Section 980 of the Evidence Code is amended to
37read:

38

980.  

Subject to Section 912 and except as otherwise provided
39in this article, a spouse, or the spouse’s guardian or conservator if
40the spouse has a guardian or conservator, whether or not a party,
P157  1has a privilege during the marital relationship and afterwards to
2refuse to disclose, and to prevent another from disclosing, a
3communication if the spouse claims the privilege and the
4communication was made in confidence between the spouse and
5the other spouse while they were married.

6

SEC. 126.  

Section 1010 of the Evidence Code is amended to
7read:

8

1010.  

As used in this article, “psychotherapist” means a person
9who is, or is reasonably believed by the patient to be:

10(a) A person authorized to practice medicine in any state or
11nation who devotes, or is reasonably believed by the patient to
12devote, a substantial portion of his or her time to the practice of
13psychiatry.

14(b) A person licensed as a psychologist under Chapter 6.6
15(commencing with Section 2900) of Division 2 of the Business
16and Professions Code.

17(c) A person licensed as a clinical social worker under Article
184 (commencing with Section 4996) of Chapter 14 of Division 2
19of the Business and Professions Code, when he or she is engaged
20in applied psychotherapy of a nonmedical nature.

21(d) A person who is serving as a school psychologist and holds
22a credential authorizing that service issued by the state.

23(e) A person licensed as a marriage and family therapist under
24Chapter 13 (commencing with Section 4980) of Division 2 of the
25Business and Professions Code.

26(f) A person registered as a psychological assistant who is under
27the supervision of a licensed psychologist or board certified
28psychiatrist as required by Section 2913 of the Business and
29Professions Code, or a person registered as a marriage and family
30therapist intern who is under the supervision of a licensed marriage
31and family therapist, a licensed clinical social worker, a licensed
32psychologist, or a licensed physician and surgeon certified in
33psychiatry, as specified in Section 4980.44 of the Business and
34Professions Code.

35(g) A person registered as an associate clinical social worker
36who is under supervision as specified in Section 4996.23 of the
37Business and Professions Code.

38(h) A person registered with the Board of Psychology as a
39registered psychologist who is under the supervision of a licensed
40psychologist or board certified psychiatrist.

P158  1(i) A psychological intern as defined in Section 2911 of the
2Business and Professions Code who is under the supervision of a
3licensed psychologist or board certified psychiatrist.

4(j) A trainee, as defined in subdivision (c) of Section 4980.03
5of the Business and Professions Code, who is fulfilling his or her
6supervised practicum required by subparagraph (B) of paragraph
7(1) of subdivision (d) of Section 4980.36 of, or subdivision (c) of
8Section 4980.37 of, the Business and Professions Code and is
9supervised by a licensed psychologist, a board certified psychiatrist,
10a licensed clinical social worker, a licensed marriage and family
11therapist, or a licensed professional clinical counselor.

12(k) A person licensed as a registered nurse pursuant to Chapter
136 (commencing with Section 2700) of Division 2 of the Business
14and Professions Code, who possesses a master’s degree in
15psychiatric-mental health nursing and is listed as a
16psychiatric-mental health nurse by the Board of Registered
17Nursing.

18(l) An advanced practice registered nurse who is certified as a
19clinical nurse specialist pursuant to Article 9 (commencing with
20Section 2838) of Chapter 6 of Division 2 of the Business and
21Professions Code and who participates in expert clinical practice
22in the specialty of psychiatric-mental health nursing.

23(m) A person rendering mental health treatment or counseling
24services as authorized pursuant to Section 6924 of the Family
25Code.

26(n) A person licensed as a professional clinical counselor under
27Chapter 16 (commencing with Section 4999.10) of Division 2 of
28the Business and Professions Code.

29(o) A person registered as a clinical counselor intern who is
30under the supervision of a licensed professional clinical counselor,
31a licensed marriage and family therapist, a licensed clinical social
32worker, a licensed psychologist, or a licensed physician and
33surgeon certified in psychiatry, as specified in Sections 4999.42
34to 4999.46, inclusive, of the Business and Professions Code.

35(p) A clinical counselor trainee, as defined in subdivision (g)
36of Section 4999.12 of the Business and Professions Code, who is
37fulfilling his or her supervised practicum required by paragraph
38(3) of subdivision (c) of Section 4999.32 of, or paragraph (3) of
39subdivision (c) of Section 4999.33 of, the Business and Professions
40Code, and is supervised by a licensed psychologist, a
P159  1board-certified psychiatrist, a licensed clinical social worker, a
2licensed marriage and family therapist, or a licensed professional
3clinical counselor.

4

SEC. 127.  

Section 1106 of the Evidence Code is amended to
5read:

6

1106.  

(a) In any civil action alleging conduct which constitutes
7sexual harassment, sexual assault, or sexual battery, opinion
8evidence, reputation evidence, and evidence of specific instances
9of the plaintiff’s sexual conduct, or any of that evidence, is not
10admissible by the defendant in order to prove consent by the
11plaintiff or the absence of injury to the plaintiff, unless the injury
12alleged by the plaintiff is in the nature of loss of consortium.

13(b) Subdivision (a) does not apply to evidence of the plaintiff’s
14sexual conduct with the alleged perpetrator.

15(c) Notwithstanding subdivision (b), in any civil action brought
16pursuant to Section 1708.5 of the Civil Code involving a minor
17and adult as described in Section 1708.5.5 of the Civil Code,
18evidence of the plaintiff minor’s sexual conduct with the defendant
19adult shall not be admissible to prove consent by the plaintiff or
20the absence of injury to the plaintiff. Such evidence of the
21plaintiff’s sexual conduct may only be introduced to attack the
22credibility of the plaintiff in accordance with Section 783 or to
23prove something other than consent by the plaintiff if, upon a
24hearing of the court out of the presence of the jury, the defendant
25proves that the probative value of that evidence outweighs the
26prejudice to the plaintiff consistent with Section 352.

27(d)  If the plaintiff introduces evidence, including testimony of
28a witness, or the plaintiff as a witness gives testimony, and the
29evidence or testimony relates to the plaintiff’s sexual conduct, the
30defendant may cross-examine the witness who gives the testimony
31and offer relevant evidence limited specifically to the rebuttal of
32the evidence introduced by the plaintiff or given by the plaintiff.

33(e) This section shall not be construed to make inadmissible
34any evidence offered to attack the credibility of the plaintiff as
35provided in Section 783.

36

SEC. 128.  

Section 1157 of the Evidence Code is amended to
37read:

38

1157.  

(a) Neither the proceedings nor the records of organized
39committees of medical, medical-dental, podiatric, registered
40dietitian, psychological, marriage and family therapist, licensed
P160  1clinical social worker, professional clinical counselor, pharmacist,
2or veterinary staffs in hospitals, or of a peer review body, as defined
3in Section 805 of the Business and Professions Code, having the
4responsibility of evaluation and improvement of the quality of care
5rendered in the hospital, or for that peer review body, or medical
6or dental review or dental hygienist review or chiropractic review
7or podiatric review or registered dietitian review or pharmacist
8review or veterinary review or acupuncturist review committees
9of local medical, dental, dental hygienist, podiatric, dietetic,
10pharmacist, veterinary, acupuncture, or chiropractic societies,
11marriage and family therapist, licensed clinical social worker,
12professional clinical counselor, or psychological review committees
13of state or local marriage and family therapist, state or local
14licensed clinical social worker, state or local licensed professional
15clinical counselor, or state or local psychological associations or
16societies having the responsibility of evaluation and improvement
17of the quality of care, shall be subject to discovery.

18(b) Except as hereinafter provided, a person in attendance at a
19meeting of any of the committees described in subdivision (a) shall
20not be required to testify as to what transpired at that meeting.

21(c) The prohibition relating to discovery or testimony does not
22apply to the statements made by a person in attendance at a meeting
23of any of the committees described in subdivision (a) if that person
24is a party to an action or proceeding the subject matter of which
25was reviewed at that meeting, to a person requesting hospital staff
26privileges, or in an action against an insurance carrier alleging bad
27faith by the carrier in refusing to accept a settlement offer within
28the policy limits.

29(d) The prohibitions in this section do not apply to medical,
30dental, dental hygienist, podiatric, dietetic, psychological, marriage
31and family therapist, licensed clinical social worker, professional
32clinical counselor, pharmacist, veterinary, acupuncture, or
33chiropractic society committees that exceed 10 percent of the
34membership of the society, nor to any of those committees if a
35person serves upon the committee when his or her own conduct
36or practice is being reviewed.

37(e) The amendments made to this section by Chapter 1081 of
38the Statutes of 1983, or at the 1985 portion of the 1985-86 Regular
39Session of the Legislature, at the 1990 portion of the 1989-90
40Regular Session of the Legislature, at the 2000 portion of the
P161  11999-2000 Regular Session of the Legislature, at the 2011 portion
2of the 2011-12 Regular Session of the Legislature, or at the 2015
3portion of the 2015-16 Regular Session of the Legislature, do not
4exclude the discovery or use of relevant evidence in a criminal
5action.

6

SEC. 129.  

Section 7612 of the Family Code is amended to
7read:

8

7612.  

(a) Except as provided in Chapter 1 (commencing with
9Section 7540) and Chapter 3 (commencing with Section 7570) of
10Part 2, a presumption under Section 7611 is a rebuttable
11presumption affecting the burden of proof and may be rebutted in
12an appropriate action only by clear and convincing evidence.

13(b) If two or more presumptions arise under Section 7610 or
147611 that conflict with each other, or if a presumption under
15Section 7611 conflicts with a claim pursuant to Section 7610, the
16presumption which on the facts is founded on the weightier
17considerations of policy and logic controls.

18(c) In an appropriate action, a court may find that more than
19two persons with a claim to parentage under this division are
20parents if the court finds that recognizing only two parents would
21be detrimental to the child. In determining detriment to the child,
22the court shall consider all relevant factors, including, but not
23limited to, the harm of removing the child from a stable placement
24with a parent who has fulfilled the child’s physical needs and the
25child’s psychological needs for care and affection, and who has
26assumed that role for a substantial period of time. A finding of
27detriment to the child does not require a finding of unfitness of
28any of the parents or persons with a claim to parentage.

29(d) Unless a court orders otherwise after making the
30determination specified in subdivision (c), a presumption under
31Section 7611 is rebutted by a judgment establishing parentage of
32the child by another person.

33(e) Within two years of the execution of a voluntary declaration
34of paternity, a person who is presumed to be a parent under Section
357611 may file a petition pursuant to Section 7630 to set aside a
36voluntary declaration of paternity. The court’s ruling on the petition
37to set aside the voluntary declaration of paternity shall be made
38taking into account the validity of the voluntary declaration of
39paternity, the best interests of the child based upon the court’s
40consideration of the factors set forth in subdivision (b) of Section
P162  17575, and the best interests of the child based upon the nature,
2duration, and quality of the petitioning party’s relationship with
3the child and the benefit or detriment to the child of continuing
4that relationship. In the event of a conflict between the presumption
5under Section 7611 and the voluntary declaration of paternity, the
6weightier considerations of policy and logic shall control.

7(f) A voluntary declaration of paternity is invalid if, at the time
8the declaration was signed, any of the following conditions exist:

9(1) The child already had a presumed parent under Section 7540.

10(2) The child already had a presumed parent under subdivision
11(a), (b), or (c) of Section 7611.

12(3) The man signing the declaration is a sperm donor, consistent
13with subdivision (b) of Section 7613.

14(g) A person’s offer or refusal to sign a voluntary declaration
15of paternity may be considered as a factor, but shall not be
16determinative, as to the issue of legal parentage in any proceedings
17regarding the establishment or termination of parental rights.

18

SEC. 130.  

Section 7613.5 of the Family Code is amended to
19read:

20

7613.5.  

(a) An intended parent may, but is not required to, use
21the forms set forth in this section to demonstrate his or her intent
22to be a legal parent of a child conceived through assisted
23reproduction. These forms shall satisfy the writing requirement
24specified in Section 7613, and are designed to provide clarity
25regarding the intentions, at the time of conception, of intended
26parents using assisted reproduction. These forms do not affect any
27presumptions of parentage based on Section 7611, and do not
28preclude a court from considering any other claims to parentage
29under California statute or case law.

30(b) These forms apply only in very limited circumstances. Please
31read the forms carefully to see if you qualify for use of the forms.

32(c) These forms do not apply to assisted reproduction agreements
33for gestational carriers or surrogacy agreements.

34(d) Nothing in this section shall be interpreted to require the use
35of one of these forms to satisfy the writing requirement of Section
367613.

37(e) The following are the optional California Statutory Forms
38for Assisted Reproduction:


39

 

California Statutory Forms for Assisted Reproduction, Form 1:

 

Two Married or Unmarried People Using Assisted Reproduction to Conceive a Child

Use this form if: You and another intended parent, who may be your spouse or registered domestic partner, are conceiving a child through assisted reproduction using sperm and/or egg donation; and one of you will be giving birth.

 

WARNING: Signing this form does not terminate the parentage claim of a sperm donor. A sperm donor’s claim to parentage is terminated if the sperm is provided to a licensed physician and surgeon or to a licensed sperm bank prior to insemination, or if you conceive without having sexual intercourse and you have a written agreement signed by you and the donor that you will conceive using assisted reproduction and do not intend for the donor to be a parent, as required by Section 7613(b) of the Family Code.

 

The laws about parentage of a child are complicated. You are strongly encouraged to consult with an attorney about your rights. Even if you do not fill out this form, a spouse or domestic partner of the parent giving birth is presumed to be a legal parent of any child born during the marriage or domestic partnership.

 

______ ______

 

This form demonstrates your intent to be parents of the child you plan to conceive through assisted reproduction using sperm and/or egg donation.

 

I, ____________________ (print name of person not giving birth), intend to be a parent of a child that ____________________ (print name of person giving birth) will or has conceived through assisted reproduction using sperm and/or egg donation. I consent to the use of assisted reproduction by the person who will give birth. I INTEND to be a parent of the child conceived.

 

SIGNATURES

 

Intended parent who will give birth: ___________________ (print name)

________________________ (signature)  ____________(date)

 

Intended parent who will not give birth: ____________ (print name)

_________________________ (signature)  ___________(date)

P164 24P164 33P164 17P164 24P164  8P164  3P164 27

 

 

______ ______

 

NOTARY ACKNOWLEDGMENT

 

State of California

County of    )      

 

On     before me,
(insert name and title of the officer)

personally appeared    ,

who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

 

Signature     (Seal)

 
P164 17P164 24P164  8P164  3P164 27

 

 

______ ______

 

California Statutory Forms for Assisted Reproduction, Form 2:

 

Unmarried, Intended Parents Using Intended Parent’s Sperm to Conceive a Child

Use this form if: (1) Neither you or the other person are married or in a registered domestic partnership (including a registered domestic partnership or civil union from another state); (2) one of you will give birth to a child conceived through assisted reproduction using the intended parent’s sperm; and (3) you both intend to be parents of that child.

 

Do not use this form if you are conceiving using a surrogate.

 

WARNING: If you do not sign this form, or a similar agreement, you may be treated as a sperm donor if you conceive without having sexual intercourse according to Section 7613(b) of the Family Code.

 

The laws about parentage of a child are complicated. You are strongly encouraged to consult with an attorney about your rights.

 

______ ______

 

This form demonstrates your intent to be parents of the child you plan to conceive through assisted reproduction using sperm donation.

 

I, ____________________ (print name of parent giving birth), plan to use assisted reproduction with another intended parent who is providing sperm to conceive the child. I am not married and am not in a registered domestic partnership (including a registered domestic partnership or civil union from another jurisdiction), and I INTEND for the person providing sperm to be a parent of the child to be conceived.

 

I, ____________________ (print name of parent providing sperm), plan to use assisted reproduction to conceive a child using my sperm with the parent giving birth. I am not married and am not in a registered domestic partnership (including a registered domestic partnership or civil union from another jurisdiction), and I INTEND to be a parent of the child to be conceived.

 

SIGNATURES

 

Intended parent giving birth: ___________________ (print name)

________________________ (signature)  ____________(date)

 

Intended parent providing sperm: ____________ (print name)

_________________________ (signature)  ___________(date)

P164  8P164  3P164 27

 

 

______ ______

 

NOTARY ACKNOWLEDGMENT

 

State of California

County of    )      

 

On     before me,
(insert name and title of the officer)

personally appeared    ,

who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

 

Signature     (Seal)

 
P164 27

 

 

______ ______

 

California Statutory Forms for Assisted Reproduction, Form 3:

 

Intended Parents Conceiving a Child Using Eggs from One Parent and the Other Parent Will Give Birth

Use this form if: You are conceiving a child using the eggs from one of you and the other person will give birth to the child; (2) and you both intend to be parents to that child.

 

Do not use this form if you are conceiving using a surrogate.

 

WARNING: Signing this form does not terminate the parentage claim of a sperm donor. A sperm donor’s claim to parentage is terminated if the sperm is provided to a licensed physician and surgeon or to a licensed sperm bank prior to insemination, or if you conceive without having sexual intercourse and you have a written agreement signed by you and the donor that you will conceive using assisted reproduction and do not intend for the donor to be a parent, as required by Section 7613(b) of the Family Code.

 

The laws about parentage of a child are complicated. You are strongly encouraged to consult with an attorney about your rights.

 

______ ______

 

This form demonstrates your intent to be parents of the child you plan to conceive through assisted reproduction using eggs from one parent and the other parent will give birth to the child.

 

I, ____________________ (print name of parent giving birth), plan to use assisted reproduction to conceive and give birth to a child with another person who will provide eggs to conceive the child. I INTEND for the person providing eggs to be a parent of the child to be conceived.

 

I, ____________________ (print name of parent providing eggs), plan to use assisted reproduction to conceive a child with another person who will give birth to the child conceived using my eggs. I INTEND to be a parent of the child to be conceived.

 

SIGNATURES

 

Intended parent giving birth: ___________________ (print name)

________________________ (signature)  ____________(date)

 

Intended parent providing eggs: ____________ (print name)

_________________________ (signature)  ___________(date)

 

 

______ ______

 

NOTARY ACKNOWLEDGMENT

 

State of California

County of    )      

 

On     before me,
(insert name and title of the officer)

personally appeared    ,

who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

 

Signature     (Seal)

 

 

 

______ ______

 

California Statutory Forms for Assisted Reproduction, Form 4:

 

Intended Parent(s) Using a Known Sperm and/or Egg Donor(s) to Conceive a Child

Use this form if: You are using a known sperm and/or egg donor(s), or embryo donation, to conceive a child and you do not intend for the donor(s) to be a parent.

 

Do not use this form if you are conceiving using a surrogate.

 

If you do not sign this form or a similar agreement, your sperm donor may be treated as a parent unless the sperm is provided to a licensed physician and surgeon or to a licensed sperm bank prior to insemination, or a court finds by clear and convincing evidence that you planned to conceive through assisted reproduction and did not intend for the donor to be a parent, as required by Section 7613(b) of the Family Code. If you do not sign this form or a similar agreement, your egg donor may be treated as a parent unless a court finds that there is satisfactory evidence that you planned to conceive through assisted reproduction and did not intend for the donor to be a parent, as required by Section 7613(c) of the Family Code.

 

The laws about parentage of a child are complicated. You are strongly encouraged to consult with an attorney about your rights.

 

______ ______

 

This form demonstrates your intent that your sperm and/or egg or embryo donor(s) will not be a parent or parents of the child you plan to conceive through assisted reproduction.

 

I, ____________________ (print name of parent giving birth), plan to use assisted reproduction to conceive using a sperm and/or egg donor(s) or embryo donation, and I DO NOT INTEND for the sperm and/or egg or embryo donor(s) to be a parent of the child to be conceived.

 

(If applicable) I, ____________________ (print name of sperm donor), plan to donate my sperm to____________________ (print name of parent giving birth and second parent if applicable). I am not married to and am not in a registered domestic partnership (including a registered domestic partnership or a civil union from another jurisdiction) with ____________________ (print name of parent giving birth), and I DO NOT INTEND to be a parent of the child to be conceived.

 

(If applicable) I, ____________________ (print name of egg donor), plan to donate my ova to____________________ (print name of parent giving birth and second parent if applicable). I am not married to and am not in a registered domestic partnership (including a registered domestic partnership or a civil union from another jurisdiction) with ____________________ (print name of parent giving birth), or any intimate and nonmarital relationship with ____________________ (print name of parent giving birth) and I DO NOT INTEND to be a parent of the child to be conceived.

 

(If applicable) I, ____________________ (print name of intended parent not giving birth), INTEND to be a parent of the child that____________________ (print name of parent giving birth) will conceive through assisted reproduction using sperm and/or egg donation and I DO NOT INTEND for the sperm and/or egg or embryo donor(s) to be a parent. I consent to the use of assisted reproduction by the person who will give birth.

 

SIGNATURES

 

Intended parent giving birth: ___________________ (print name)

________________________ (signature)  ____________(date)

 

(If applicable) Sperm Donor: ___________________ (print name)

________________________ (signature)  ____________(date)

 

(If applicable) Egg Donor: ___________________ (print name)

________________________ (signature)  ____________(date)

 

(If applicable) Intended parent not giving birth: ____________ (print name)

_________________________ (signature)  ___________(date)

 

 

______ ______

 

NOTARY ACKNOWLEDGMENT

 

State of California

County of    )      

 

On     before me,
(insert name and title of the officer)

personally appeared    ,

who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

 

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

 

WITNESS my hand and official seal.

 

Signature     (Seal)

 

 

28

SEC. 131.  

Section 8811 of the Family Code is amended to
29read:

30

8811.  

(a) The department or delegated county adoption agency
31shall require each person who files an adoption petition to be
32fingerprinted and shall secure from an appropriate law enforcement
33agency any criminal record of that person to determine if the person
34has ever been convicted of a crime other than a minor traffic
35violation. The department or delegated county adoption agency
36may also secure the person’s full criminal record, if any, with the
37exception of any convictions for which relief has been granted
38pursuant to Section 1203.49 of the Penal Code. Any federal-level
39criminal offender record requests to the Department of Justice
40shall be submitted with fingerprint images and related information
P171  1required by the Department of Justice for the purposes of obtaining
2information as to the existence and content of a record of an
3 out-of-state or federal conviction or arrest of a person or
4information regarding any out-of-state or federal crimes or arrests
5for which the Department of Justice establishes that the person is
6free on bail, or on his or her own recognizance pending trial or
7appeal. The Department of Justice shall forward to the Federal
8Bureau of Investigation any requests for federal summary criminal
9history information received pursuant to this section. The
10Department of Justice shall review the information returned from
11the Federal Bureau of Investigation and shall compile and
12disseminate a response to the department or delegated county
13adoption agency.

14(b) Notwithstanding subdivision (c), the criminal record, if any,
15shall be taken into consideration when evaluating the prospective
16adoptive parent, and an assessment of the effects of any criminal
17history on the ability of the prospective adoptive parent to provide
18adequate and proper care and guidance to the child shall be
19included in the report to the court.

20(c) (1) The department or a delegated county adoption agency
21shall not give final approval for an adoptive placement in any home
22in which the prospective adoptive parent or any adult living in the
23prospective adoptive home has either of the following:

24(A) A felony conviction for child abuse or neglect, spousal
25abuse, crimes against a child, including child pornography, or for
26a crime involving violence, including rape, sexual assault, or
27homicide, but not including other physical assault and battery. For
28purposes of this subdivision, crimes involving violence means
29those violent crimes contained in clause (i) of subparagraph (A),
30and subparagraph (B), of paragraph (1) of subdivision (g) of
31Section 1522 of the Health and Safety Code.

32(B) A felony conviction that occurred within the last five years
33for physical assault, battery, or a drug- or alcohol-related offense.

34(2) This subdivision shall become operative on October 1, 2008,
35and shall remain operative only to the extent that compliance with
36its provisions is required by federal law as a condition of receiving
37funding under Title IV-E of the federal Social Security Act (42
38U.S.C. Sec. 670 et seq.).

39(d) Any fee charged by a law enforcement agency for
40fingerprinting or for checking or obtaining the criminal record of
P172  1the petitioner shall be paid by the petitioner. The department or
2delegated county adoption agency may defer, waive, or reduce the
3fee if its payment would cause economic hardship to the
4prospective adoptive parents detrimental to the welfare of the
5adopted child, if the child has been in the foster care of the
6prospective adoptive parents for at least one year, or if necessary
7for the placement of a special-needs child.

8

SEC. 132.  

Section 8908 of the Family Code is amended to
9read:

10

8908.  

(a) A licensed adoption agency shall require each person
11filing an application for adoption to be fingerprinted and shall
12secure from an appropriate law enforcement agency any criminal
13record of that person to determine if the person has ever been
14convicted of a crime other than a minor traffic violation. The
15licensed adoption agency may also secure the person’s full criminal
16record, if any, with the exception of any convictions for which
17relief has been granted pursuant to Section 1203.49 of the Penal
18Code. Any federal-level criminal offender record requests to the
19Department of Justice shall be submitted with fingerprint images
20and related information required by the Department of Justice for
21the purposes of obtaining information as to the existence and
22content of a record of an out-of-state or federal conviction or arrest
23of a person or information regarding any out-of-state or federal
24crimes or arrests for which the Department of Justice establishes
25that the person is free on bail, or on his or her own recognizance
26pending trial or appeal. The Department of Justice shall forward
27to the Federal Bureau of Investigation any requests for federal
28summary criminal history information received pursuant to this
29section. The Department of Justice shall review the information
30returned from the Federal Bureau of Investigation and shall compile
31and disseminate a fitness determination to the licensed adoption
32agency.

33(b) Notwithstanding subdivision (c), the criminal record, if any,
34shall be taken into consideration when evaluating the prospective
35adoptive parent, and an assessment of the effects of any criminal
36history on the ability of the prospective adoptive parent to provide
37adequate and proper care and guidance to the child shall be
38included in the report to the court.

39(c) (1) A licensed adoption agency shall not give final approval
40for an adoptive placement in any home in which the prospective
P173  1adoptive parent, or any adult living in the prospective adoptive
2home, has a felony conviction for either of the following:

3(A) Any felony conviction for child abuse or neglect, spousal
4abuse, crimes against a child, including child pornography, or for
5a crime involving violence, including rape, sexual assault, or
6homicide, but not including other physical assault and battery. For
7purposes of this subdivision, crimes involving violence means
8those violent crimes contained in clause (i) of subparagraph (A),
9and subparagraph (B), of paragraph (1) of subdivision (g) of
10Section 1522 of the Health and Safety Code.

11(B) A felony conviction that occurred within the last five years
12 for physical assault, battery, or a drug- or alcohol-related offense.

13(2) This subdivision shall become operative on October 1, 2008,
14and shall remain operative only to the extent that compliance with
15its provisions is required by federal law as a condition of receiving
16funding under Title IV-E of the federal Social Security Act (42
17U.S.C. Sec. 670 et seq.).

18(d) Any fee charged by a law enforcement agency for
19fingerprinting or for checking or obtaining the criminal record of
20the applicant shall be paid by the applicant. The licensed adoption
21agency may defer, waive, or reduce the fee if its payment would
22cause economic hardship to the prospective adoptive parents
23detrimental to the welfare of the adopted child.

24

SEC. 133.  

Section 20024 of the Family Code is repealed.

25

SEC. 134.  

Section 20039 of the Family Code is repealed.

26

SEC. 135.  

Section 2022 of the Fish and Game Code is amended
27to read:

28

2022.  

(a) For the purposes of this section, the following terms
29have the following meanings:

30(1) “Bona fide educational or scientific institution” means an
31institution that establishes through documentation either of the
32following:

33(A) Educational or scientific tax exemption, from the federal
34Internal Revenue Service or the institution’s national, state, or
35local tax authority.

36(B) Accreditation as an educational or scientific institution,
37from a qualified national, regional, state, or local authority for the
38institution’s location.

39(2) “Ivory” means a tooth or tusk from a species of elephant,
40hippopotamus, mammoth, mastodon, walrus, warthog, whale, or
P174  1narwhal, or a piece thereof, whether raw ivory or worked ivory,
2and includes a product containing, or advertised as containing,
3ivory.

4(3) “Rhinoceros horn” means the horn, or a piece thereof, or a
5derivative such as powder, of a species of rhinoceros, and includes
6a product containing, or advertised as containing, a rhinoceros
7horn.

8(4) “Sale” or “sell” means selling, trading, bartering for
9monetary or nonmonetary consideration, giving away in
10conjunction with a commercial transaction, or giving away at a
11location where a commercial transaction occurred at least once
12during the same or the previous calendar year.

13(5) “Total value” means either the fair market value or the actual
14price paid for ivory or rhinoceros horn, whichever is greater.

15(b) Except as provided in subdivision (c), it is unlawful to
16purchase, sell, offer for sale, possess with intent to sell, or import
17with intent to sell ivory or rhinoceros horn.

18(c) The prohibitions set forth in subdivision (b) do not apply to
19any of the following:

20(1) An employee or agent of the federal or state government
21undertaking a law enforcement activity pursuant to federal or state
22law, or a mandatory duty required by federal law.

23(2) An activity that is authorized by an exemption or permit
24under federal law or that is otherwise expressly authorized under
25federal law.

26(3) Ivory or rhinoceros horn that is part of a musical instrument,
27including, but not limited to, a string or wind instrument or piano,
28and that is less than 20 percent by volume of the instrument, if the
29owner or seller provides historical documentation demonstrating
30provenance and showing the item was manufactured no later than
311975.

32(4) Ivory or rhinoceros horn that is part of a bona fide antique
33and that is less than five percent by volume of the antique, if the
34antique status is established by the owner or seller of the antique
35with historical documentation demonstrating provenance and
36showing the antique to be not less than 100 years old.

37(5) The purchase, sale, offer for sale, possession with intent to
38sell, or importation with intent to sell ivory or rhinoceros horn for
39educational or scientific purposes by a bona fide educational or
40scientific institution if both of the following criteria are satisfied:

P175  1(A) The purchase, sale, offer for sale, possession with intent to
2sell, or import with intent to sell the ivory or rhinoceros horn is
3not prohibited by federal law.

4(B) The ivory or rhinoceros horn was legally acquired before
5January 1, 1991, and was not subsequently transferred from one
6person to another for financial gain or profit after July 1, 2016.

7(d) Possession of ivory or rhinoceros horn in a retail or
8wholesale outlet commonly used for the buying or selling of similar
9items is prima facie evidence of possession with intent to sell. This
10evidence does not preclude a finding of intent to sell based on any
11other evidence that may serve to establish that intent independently
12or in conjunction with this evidence.

13(e) For a violation of any provision of this section, or any rule,
14regulation, or order adopted pursuant to this section, the following
15criminal penalties shall be imposed:

16(1) For a first conviction, where the total value of the ivory or
17rhinoceros horn is two hundred fifty dollars ($250) or less, the
18offense shall be a misdemeanor punishable by a fine of not less
19than one thousand dollars ($1,000), or more than ten thousand
20dollars ($10,000), imprisonment in the county jail for not more
21than 30 days, or by both the fine and imprisonment.

22(2) For a first conviction, where the total value of the ivory or
23rhinoceros horn is more than two hundred fifty dollars ($250), the
24offense shall be a misdemeanor punishable by a fine of not less
25than five thousand dollars ($5,000), or more than forty thousand
26dollars ($40,000), imprisonment in the county jail for not more
27than one year, or by both the fine and imprisonment.

28(3) For a second or subsequent conviction, where the total value
29of the ivory or rhinoceros horn is two hundred fifty dollars ($250)
30or less, the offense shall be a misdemeanor punishable by a fine
31of not less than five thousand dollars ($5,000), or more than forty
32thousand dollars ($40,000), imprisonment in county jail for not
33more than one year, or by both the fine and imprisonment.

34(4) For a second or subsequent conviction, where the total value
35of the ivory or rhinoceros horn is more than two hundred fifty
36dollars ($250), the offense shall be a misdemeanor punishable by
37a fine of not less than ten thousand dollars ($10,000), or more than
38fifty thousand dollars ($50,000) or the amount equal to two times
39the total value of the ivory or rhinoceros horn involved in the
P176  1violation, whichever is greater, imprisonment in county jail for
2not more than one year, or by both the fine and imprisonment.

3(f) In addition to, and separate from, any criminal penalty
4provided for under subdivision (e), an administrative penalty of
5up to ten thousand dollars ($10,000) may be imposed for a violation
6of any provision of this section, or any rule, regulation, or order
7adopted pursuant to this section. Penalties authorized pursuant to
8this subdivision may be imposed by the department consistent with
9all of the following:

10(1) The chief of enforcement issues a complaint to any person
11or entity on which an administrative penalty may be imposed
12pursuant to this section. The complaint shall allege the act or failure
13to act that constitutes a violation, relevant facts, the provision of
14law authorizing the administrative penalty to be imposed, and the
15proposed penalty amount.

16(2) The complaint and order is served by personal notice or
17certified mail and informs the party served that the party may
18request a hearing no later than 20 days from the date of service. If
19a hearing is requested, it shall be scheduled before the director or
20his or her designee, which designee shall not be the chief of
21enforcement issuing the complaint and order. A request for hearing
22shall contain a brief statement of the material facts the party claims
23support his or her contention that an administrative penalty should
24not be imposed or that an administrative penalty of a lesser amount
25is warranted. A party served with a complaint pursuant to this
26subdivision waives the right to a hearing if no hearing is requested
27within 20 days of service of the complaint, in which case the order
28imposing the administrative penalty shall become final.

29(3) The director, or his or her designee, shall control the nature
30and order of the hearing proceedings. Hearings shall be informal
31in nature, and need not be conducted according to the technical
32rules relating to evidence. The director, or his or her designee,
33shall issue a final order within 45 days of the close of the hearing.
34A final copy of the order shall be served by certified mail upon
35the party served with the complaint.

36(4) A party may obtain review of the final order by filing a
37petition for a writ of mandate with the superior court within 30
38days of the date of service of the final order. The administrative
39penalty shall be due and payable to the department within 60 days
40after the time to seek judicial review has expired or, where the
P177  1party has not requested a hearing of the order, within 20 days after
2the order imposing an administrative penalty becomes final.

3(g) For any conviction or other entry of judgment imposed by
4a court for a violation of this section resulting in a fine, the court
5may pay one-half of the fine, but not to exceed five hundred dollars
6($500), to any person giving information that led to the conviction
7or other entry of judgment. This reward shall not apply if the
8informant is a regular salaried law enforcement officer, or officer
9or agent of the department.

10(h) Upon conviction or other entry of judgment for a violation
11of this section, any seized ivory or rhinoceros horn shall be
12forfeited and, upon forfeiture, either maintained by the department
13for educational or training purposes, donated by the department
14to a bona fide educational or scientific institution, or destroyed.

15(i) Administrative penalties collected pursuant to this section
16shall be deposited in the Fish and Game Preservation Fund and
17used for law enforcement purposes upon appropriation by the
18Legislature.

19(j) This section does not preclude enforcement under Section
20653o of the Penal Code.

21

SEC. 136.  

Section 6440 of the Fish and Game Code is amended
22to read:

23

6440.  

The Legislature finds and declares that triploid grass
24carp have the potential to control aquatic nuisance plants in
25non-public waters allowing for reduced chemical control but that
26the threat that grass carp pose to aquatic habitat may outweigh its
27benefits. It is the intent of this section to allow the department to
28use its management authority to provide for the long-term health
29of the ecosystem in the state, including the aquatic ecosystem, and,
30in that context, manage grass carp either through control of
31movement, eradication of populations, acquisition of habitat, and
32any other action that the department finds will maintain the
33biological diversity and the long term, overall health of the state’s
34environment. The department shall undertake the management of
35grass carp in a manner that is consistent with provisions of this
36code, and, for the purposes of this section, the department shall
37define management as handling, controlling, destroying, or moving
38species. The Legislature does not intend for this section to provide
39a right for the use of triploid grass carp if the department finds that
P178  1use of the species poses an unacceptable risk to the state’s existing
2ecosystem.

3

SEC. 137.  

Section 7704 of the Fish and Game Code is amended
4to read:

5

7704.  

(a) It is unlawful to cause or permit deterioration or
6waste of a fish taken in the waters of this state, or brought into this
7state, or to take, receive, or agree to receive more fish than can be
8used without deterioration, waste, or spoilage.

9(b) Except as permitted by this code, it is unlawful to use a fish,
10except fish offal, in a reduction plant or by a reduction process.

11(c) Except as permitted by this code or by regulation of the
12commission, it is unlawful to sell, purchase, deliver for a
13commercial purpose, or possess on a commercial fishing vessel
14registered pursuant to Section 7881, a shark fin or tail or part of a
15shark fin or tail that has been removed from the carcass. However,
16a thresher shark fin or tail that has been removed from the carcass
17and whose original shape remains unaltered may be possessed on
18a registered commercial fishing vessel if the carcass corresponding
19to the fin or tail is also possessed.

20

SEC. 138.  

Section 12029 of the Fish and Game Code is
21amended to read:

22

12029.  

(a) The Legislature finds and declares all of the
23following:

24(1) The environmental impacts associated with marijuana
25cultivation have increased, and unlawful water diversions for
26marijuana irrigation have a detrimental effect on fish and wildlife
27and their habitat, which are held in trust by the state for the benefit
28of the people of the state.

29(2) The remediation of existing marijuana cultivation sites is
30often complex and the permitting of these sites requires greater
31department staff time and personnel expenditures. The potential
32for marijuana cultivation sites to significantly impact the state’s
33fish and wildlife resources requires immediate action on the part
34of the department’s lake and streambed alteration permitting staff.

35(b) In order to address unlawful water diversions and other
36violations of this code associated with marijuana cultivation, the
37department shall establish the watershed enforcement program to
38facilitate the investigation, enforcement, and prosecution of these
39offenses.

P179  1(c) The department, in coordination with the State Water
2Resources Control Board, shall establish a permanent multiagency
3task force to address the environmental impacts of marijuana
4cultivation. The multiagency task force, to the extent feasible and
5subject to available resources, shall expand its enforcement efforts
6on a statewide level to ensure the reduction of adverse impacts of
7marijuana cultivation on fish and wildlife and their habitats
8throughout the state.

9(d) In order to facilitate the remediation and permitting of
10marijuana cultivation sites, the department shall adopt regulations
11to enhance the fees on any entity subject to Section 1602 for
12marijuana cultivation sites that require remediation. The fee
13schedule established pursuant to this subdivision shall not exceed
14the fee limits in Section 1609.

15

SEC. 139.  

Section 14651.5 of the Food and Agricultural Code
16 is amended to read:

17

14651.5.  

(a) The department shall levy an administrative
18penalty against a person who violates this chapter in an amount of
19not more than five thousand dollars ($5,000) for each violation.
20The amount of the penalty assessed for each violation shall be
21based upon the nature of the violation, the seriousness of the effect
22of the violation upon the effectuation of the purposes and
23provisions of this chapter, and the impact of the penalty on the
24violator, including the deterrent effect on future violations.

25(b) Upon a finding that the violation is minor or unintentional,
26in lieu of an administrative penalty, the secretary may issue a notice
27of warning.

28(c) A person against whom an administrative penalty is levied
29 shall be afforded an opportunity for a hearing before the secretary,
30upon a request made within 30 days after the date of issuance of
31the notice of penalty. At the hearing, the person shall be given the
32right to present evidence on his or her own behalf. If a hearing is
33not requested, the administrative penalty shall constitute a final
34and nonreviewable order.

35(d) If a hearing is held, review of the decision of the secretary
36may be sought by the person against whom the administrative
37penalty is levied within 30 days of the date of the final order of
38the secretary pursuant to Section 1094.5 of the Code of Civil
39Procedure.

P180  1(e) After completion of the hearing procedure pursuant to
2subdivision (c), the secretary may file a certified copy of the
3department’s final decision that directs payment of an
4administrative penalty, and, if applicable, any order denying a
5petition for a writ of administrative mandamus, with the clerk of
6the superior court of any county that has jurisdiction over the
7matter. Judgment shall be entered immediately by the clerk in
8conformity with the decision or order. Fees shall not be charged
9by the clerk of the superior court for performance of any official
10services required in connection with the entry of judgment and the
11satisfaction of the judgment pursuant to this section.

12

SEC. 140.  

Section 27581.1 of the Food and Agricultural Code
13 is amended to read:

14

27581.1.  

(a) On or before January 1, 2017, the secretary shall
15adopt regulations classifying violations of this chapter, or any
16regulation adopted pursuant to this chapter, as “minor,” subject to
17a penalty from fifty dollars ($50) to four hundred dollars ($400),
18inclusive, “moderate,” subject to a penalty from four hundred one
19dollars ($401) to one thousand dollars ($1,000), inclusive, or
20“serious,” subject to a penalty from one thousand one dollars
21($1,001) to ten thousand dollars ($10,000), inclusive.

22(b) The penalty schedule described in this section shall apply
23to civil penalties imposed pursuant to Section 27581.4 and
24administrative penalties imposed pursuant to Section 27583.

25(c) The department shall post on its Internet Web site the penalty
26schedule described in this section when it is adopted.

27

SEC. 141.  

Section 27583.2 of the Food and Agricultural Code
28 is amended to read:

29

27583.2.  

If the secretary levies an administrative penalty
30pursuant to Section 27583, the following shall apply:

31(a) The person charged with the violation shall be notified of
32the proposed action in accordance with subdivision (b). The notice
33shall include the nature of the violation, the amount of the proposed
34administrative penalty, and the right to request a hearing to appeal
35the administrative action.

36(b) (1) Notice shall be sent by certified mail to one of the
37following:

38(A) The address of the person charged, as provided by any
39license or registration issued by the department, which is not
P181  1limited to a certificate of registration issued pursuant to this
2chapter.

3(B) The address of an agent for service of process for the person
4charged, as filed with the Secretary of State.

5(C) If an address described in subparagraph (A) or (B) is not
6available, the last known address of the person charged.

7(2) Notice that is sent to any of the addresses described in
8paragraph (1) shall be considered received, even if delivery is
9refused or if the notice is not accepted at that address.

10(3) The person charged shall have the right to appeal the
11proposed action by requesting a hearing within 20 days of the
12issuance of the notice of the proposed action.

13(c) If a hearing is requested, the secretary shall schedule a
14hearing within 45 days of the request, with notice of the time and
15place of the hearing given at least 10 days before the date of the
16hearing. At the hearing, the person charged shall be given an
17opportunity to review the secretary’s evidence and to present
18evidence on his or her own behalf. If a hearing is not timely
19requested, the secretary may take the proposed action without a
20hearing.

21(d) The secretary shall issue a decision within 30 days of the
22conclusion of the hearing, which decision shall become effective
23immediately.

24(e) The secretary shall send a copy of the notice of the proposed
25action to the commissioner of the county in which the violation
26took place at the same time notice is sent pursuant to subdivision
27(b). Additionally, the secretary shall inform the commissioner of
28the county in which the action was initiated of violations for which
29a penalty has been assessed.

30(f) If the proposed action is not overturned, in addition to the
31levy of an administrative penalty, the secretary may recover from
32the person charged any other reasonable costs incurred by the
33department in connection with administering the hearing to appeal
34the proposed action.

35(g) Revenues collected by the secretary pursuant to this section
36shall be deposited into the Department of Food and Agriculture
37Fund for use by the department in administering this chapter, when
38appropriated to the department for that purpose.

39

SEC. 142.  

Section 27583.4 of the Food and Agricultural Code
40 is amended to read:

P182  1

27583.4.  

If a commissioner levies an administrative penalty
2pursuant to Section 27583, the following shall apply:

3(a) (1) Before an administrative penalty is levied, the person
4charged with the violation shall receive written notice of the
5proposed action in accordance with paragraph (2). The notice shall
6include the nature of the violation, the amount of the proposed
7penalty, and the right to request a hearing to appeal the
8administrative action.

9(2) (A) Notice shall be sent by certified mail to one of the
10following:

11(i) The address of the person charged, as provided by any license
12or registration issued by the department, which is not limited to a
13certificate of registration issued pursuant to this chapter.

14(ii) The address of an agent for service of process for the person
15charged, as filed with the Secretary of State.

16(iii) If an address described in clause (i) or (ii) is not available,
17the last known address of the person charged.

18(B) Notice that is sent to any of the addresses described in
19subparagraph (A) shall be considered received, even if delivery is
20refused or if the notice is not accepted at that address.

21(C) The person charged shall have the right to appeal the
22proposed action by requesting a hearing within 20 days of the
23issuance of the notice of the proposed action.

24(3) If a hearing is requested, the commissioner shall schedule
25a hearing within 45 days of the request, with notice of the time
26and place of the hearing given at least 10 days before the date of
27the hearing. At the hearing, the person charged shall be given an
28opportunity to review the commissioner’s evidence and to present
29evidence on his or her own behalf. If a hearing is not timely
30requested, the commissioner may take the proposed action without
31a hearing. If the person charged, or his or her legal representative,
32fails to appear, the commissioner shall prevail in the proceedings.

33(4) The commissioner shall issue a decision within 30 days of
34the conclusion of the hearing, which decision shall become
35effective immediately.

36(5) The commissioner shall send a copy of the notice of the
37proposed action to the secretary at the same time notice is sent to
38the person charged with the violation.

39(b) If the person, upon whom the commissioner levied an
40administrative penalty, requested and appeared at a hearing, the
P183  1person may appeal the commissioner’s decision to the secretary
2within 30 days of the date of receiving a copy of the
3commissioner’s decision. The following procedures apply to the
4appeal:

5(1) The appeal shall be in writing and signed by the appellant
6or his or her authorized agent, state the grounds for the appeal, and
7include a copy of the commissioner’s decision. The appellant shall
8file a copy of the appeal with the commissioner at the same time
9it is filed with the secretary.

10(2) The appellant and the commissioner, at the time of filing
11the appeal, within 10 days thereafter, or at a later time prescribed
12by the secretary, may present the record of the hearing and a written
13argument to the secretary stating the ground for affirming,
14modifying, or reversing the commissioner’s decision.

15(3) The secretary may grant oral arguments upon application
16made at the time written arguments are filed.

17(4) If an application to present an oral argument is granted,
18written notice of the time and place for the oral argument shall be
19given at least 10 days before the date set for oral argument. The
20times may be altered by mutual agreement of the appellant, the
21commissioner, and the secretary.

22(5) The secretary shall decide the appeal on the record of the
23hearing, including the written evidence and the written argument
24described in paragraph (2), that he or she has received. If the
25secretary finds substantial evidence in the record to support the
26commissioner’s decision, the secretary shall affirm the decision.

27(6) The secretary shall render a written decision within 45 days
28of the date of appeal or within 15 days of the date of oral arguments
29or as soon thereafter as practical.

30(7) On an appeal pursuant to this section, the secretary may
31affirm the commissioner’s decision, modify the commissioner’s
32decision by reducing or increasing the amount of the penalty levied
33so that it is consistent with the penalty schedule described in
34Section 27581.1, or reverse the commissioner’s decision. An
35administrative penalty increased by the secretary shall not be higher
36than that proposed in the commissioner’s notice of proposed action
37given pursuant to subdivision (a). A copy of the secretary’s
38decision shall be delivered or mailed to the appellant and the
39commissioner.

P184  1(8) Any person who does not request a hearing with the
2commissioner pursuant to an administrative penalty assessed under
3subdivision (a) shall not file an appeal to the secretary pursuant to
4this subdivision.

5(c) If the proposed action is not overturned, in addition to the
6levy of an administrative penalty, the commissioner may recover
7from the person charged any other reasonable costs incurred by
8the commissioner in connection with administering the hearing to
9appeal the proposed action.

10(d) Revenues from administrative penalties levied by the
11commissioner shall be deposited in the general fund of the county
12and, upon appropriation by the board of supervisors, shall be used
13by the commissioner to carry out his or her responsibilities under
14this chapter. The commissioner shall inform the secretary of any
15violations for which a penalty has been assessed.

16

SEC. 143.  

Section 52332 of the Food and Agricultural Code
17 is amended to read:

18

52332.  

The secretary, by regulation, may adopt all of the
19following:

20(a) A list of the plants and crops that the secretary finds are or
21may be grown in this state.

22(b) A list of the plants and crops that the secretary finds are
23detrimental to agriculture if they occur incidentally in other crops,
24and which, therefore, are classed as weed seed except if sold alone
25or as a specific constituent of a definite seed mixture.

26(c) A list of noxious weed seed that the secretary finds are
27prohibited noxious weed seed, as defined in this chapter.

28(d) A list of those noxious weed seed that are not classified as
29 prohibited noxious weed seed and are classified by this chapter as
30restricted noxious weed seed.

31(e) A list of substances that are likely to be used for treating
32grain or other crop seed that the secretary finds and determines
33are toxic to human beings or animals if used, and an appropriate
34warning or caution statement for each substance.

35(f) (1) (A) Methods and procedures, upon the recommendation
36of the board, for the conciliation, mediation, or arbitration of
37disputes between labelers and any persons concerning conformance
38with label statements, advertisements, financial terms or the lack
39of payment by a dealer to a grower, or other disputes regarding
40the quality or performance of seed. The methods and procedures
P185  1shall be a mandatory prerequisite to pursuing other dispute
2resolution mechanisms, including, but not limited to, litigation.
3However, if conciliation, mediation, or arbitration proceedings are
4commenced under this section to resolve a controversy, the statute
5of limitations that applies to a civil action concerning that
6controversy is tolled upon commencement of the conciliation,
7mediation, or arbitration proceedings, and until 30 days after the
8completion of those proceedings. As used in this subdivision,
9“completion of those proceedings” means the filing of a statement
10of agreement or nonagreement by the conciliator or mediator, or
11the rendering of a decision by an arbitrator or arbitration
12committee.

13(B) If a proceeding for the conciliation, mediation, or arbitration
14of a dispute between a dealer and a grower is commenced under
15this subdivision for conformance with the financial terms by a
16dealer to a grower, and the decision in the proceeding is in favor
17of the grower, the decision may include a provision requiring
18compensation to the grower for the estimated value of the seed
19production services a grower provides to a dealer, including, but
20not limited to, labor, care, and expense in growing and harvesting
21that product.

22(C) If a dealer fails to comply with the financial obligations of
23a judgment rendered in a conciliation, mediation, or arbitration
24proceeding between a dealer and a grower commenced pursuant
25to this subdivision following the conclusion of all appeals in the
26proceeding, the secretary may revoke the dealer’s registration and
27prevent the dealer from renewing his or her registration until the
28time the financial obligation is fulfilled.

29(2) Conciliation, mediation, or arbitration shall not affect any
30enforcement action by the secretary pursuant to this chapter.
31Regulations adopted by the secretary for the mandatory
32conciliation, mediation, or arbitration of disputes shall require that
33adequate notice be provided on the seed label notifying any buyer
34of the requirement to submit a dispute to mandatory conciliation,
35mediation, or arbitration as a prerequisite to other dispute resolution
36mechanisms, including litigation.

37(g) Additional labeling requirements for coated, pelleted,
38encapsulated, mat, tape, or any other germination medium or device
39used on seed in order that the purchaser or consumer will be
40informed as to the actual amount of seed purchased.

P186  1

SEC. 144.  

Section 55631 of the Food and Agricultural Code
2 is amended to read:

3

55631.  

(a) Every producer of any farm product that sells any
4product that is grown by him or her to any processor under contract,
5express or implied, in addition to all other rights and remedies that
6are provided for by law, has a lien upon that product and upon all
7processed or manufactured forms of that farm product for his or
8her labor, care, and expense in growing and harvesting that product.
9The lien shall be to the extent of the agreed price, if any, for that
10product so sold. If there is no agreed price or a method for
11determining the price that is agreed upon, the extent of the lien is
12the value of the farm product as of the date of the delivery. Any
13portion of that product or the processed or manufactured forms of
14that product, in excess of the amount necessary to satisfy the total
15amount owed to producers under contract, shall be free and clear
16of that lien.

17(b) Every producer of a flower, agricultural, or vegetable seed
18that sells seed that is grown by him or her, when the seed was
19purchased or supplied by the grower and not supplied by the dealer
20or an independent third party who paid for the seed, to any seed
21dealer under contract, express or implied, in addition to all other
22rights and remedies that are provided for by law, has a lien upon
23that product and upon all processed or manufactured forms of that
24product for his or her labor, care, and expense in growing and
25harvesting that product. The lien shall be to the extent of the agreed
26price, if any, for that product so sold. If there is no agreed price or
27a method for determining the price that is agreed upon, the extent
28of the lien is the value of that product as of the date of the delivery.
29Any portion of that product or the processed or manufactured forms
30of that product, in excess of the amount necessary to satisfy the
31total amount owed to producers under contract, shall be free and
32clear of that lien.

33

SEC. 145.  

Section 56109 of the Food and Agricultural Code
34 is amended to read:

35

56109.  

“Farm product” includes every agricultural,
36horticultural, viticultural, and vegetable product of the soil, poultry
37and poultry products, livestock products and livestock not for
38immediate slaughter, bees and apiary products, hay, dried beans,
39honey, and cut flowers. It does not, however, include any timber
40or timber product, flower or agricultural or vegetable seed, any
P187  1milk product that is subject to the licensing and bonding provisions
2of Chapter 2 (commencing with Section 61801) of Part 3 of
3Division 21, any aquacultural product, or cattle sold to any person
4who is bonded under the federal Packers and Stockyards Act, 1921
5(7 U.S.C. Sec. 181 et seq.).

6

SEC. 146.  

Section 67132 of the Food and Agricultural Code
7 is amended to read:

8

67132.  

Upon the finding of 11 voting members of the
9commission if the commission consists of three or five districts,
10or of 10 voting members of the commission if the commission
11consists of four districts, that this chapter has not tended to
12effectuate its declared purposes, the commission may recommend
13to the secretary that the operations of the commission shall be
14suspended, provided that the suspension shall not become effective
15until the expiration of the current marketing season. The secretary
16shall, upon receipt of the recommendation, or upon a petition filed
17with him or her requesting the suspension, signed by 15 percent
18of the producers by number who produced not less than 15 percent
19of the volume in the immediately preceding year, cause a
20referendum to be conducted among the listed producers to
21determine if the operation of this chapter and the operations of the
22commission shall be suspended, and shall establish a referendum
23period, which shall not be less than 10 days nor more than 60 days
24in duration. The secretary is authorized to prescribe any additional
25procedure necessary to conduct the referendum. At the close of
26the established referendum period, the secretary shall tabulate the
27ballots filed during the period. If at least 40 percent of the total
28number of producers, on a list established by the secretary,
29marketing 40 percent of the total volume marketed by all producers
30during the last completed marketing season, participate in the
31referendum, the secretary shall suspend this chapter upon the
32expiration of the current marketing season, if he or she finds either
33one of the following:

34(a) Sixty-five percent or more of the producers who voted in
35the referendum voted in favor of the suspension, and the producers
36so voting marketed 51 percent or more of the total quantity of
37 avocados marketed in the preceding marketing season by all of
38the producers who voted in the referendum.

39(b) Fifty-one percent or more of the producers who voted in the
40referendum voted in favor of suspension, and the producers so
P188  1voting marketed 65 percent or more of the total quantity of
2avocados marketed in the preceding season by all of the producers
3who voted in the referendum.

4

SEC. 147.  

Section 76953.5 of the Food and Agricultural Code
5 is amended to read:

6

76953.5.  

(a) Before the referendum vote is conducted by the
7secretary, the proponents of the council shall deposit with the
8secretary the amount that the secretary determines is necessary to
9defray the expenses of preparing the necessary lists and information
10and conducting the referendum vote.

11(b) Any funds not used in carrying out this article shall be
12returned to the proponents of the council who deposited the funds
13with the secretary.

14(c) Upon establishment of the council, the council may
15reimburse the proponents of the council for any funds deposited
16with the secretary that were used in carrying out this article, and
17for any legal expenses and costs incurred in establishing the
18council.

19(d) After approval by the Commercial Salmon Trollers Advisory
20Committee created pursuant to Section 7862 of the Fish and Game
21Code, the Department of Fish and Wildlife may expend funds
22collected pursuant to Section 7861 of the Fish and Game Code,
23for payment to the secretary to pay necessary costs incurred in
24conducting the implementation referendum vote. If the commercial
25salmon vessel operators who voted in the implementation
26referendum voted in favor of implementing this article, as provided
27in Section 76952, the council shall reimburse the Commercial
28Salmon Stamp Account in the Fish and Game Preservation Fund
29all amounts received from that fund.

30begin insert

begin insertSEC. 147.5end insertbegin insert.end insert  

end insert

begin insertSection 421 of the end insertbegin insertGovernment Codeend insertbegin insert is amended
31to read:end insert

32

421.  

The golden poppybegin delete (Eschscholtzia)end deletebegin insert (Eschscholzia
33californica)end insert
is the official State Flower. April 6 of each year is
34hereby designated California Poppy Day.

35

SEC. 148.  

Section 1225 of the Government Code is amended
36to read:

37

1225.  

(a) An executive officer, a judicial officer, and a Member
38of the Legislature may administer and certify oaths.

39(b) A former judge of a court of record in this state who retired
40or resigned from office shall be deemed a judicial officer for
P189  1purposes of this section, if he or she satisfies the conditions set
2forth in subdivision (c) of Section 2093 of the Code of Civil
3Procedure.

4(c) A law, rule, or regulation regarding the confidentiality of
5proceedings of the Commission on Judicial Performance shall not
6be construed to prohibit the commission from issuing a certificate
7as provided for in this section.

8

SEC. 149.  

The heading of Chapter 15 (commencing with
9Section 5970) of Division 6 of Title 1 of the Government Code,
10as amended and renumbered by Section 182 of Chapter 303 of the
11Statutes of 2015, is amended and renumbered to read:

12 

13Chapter  14.5. Awarding of Contracts
14

 

15

SEC. 150.  

Section 5970 of the Government Code is amended
16to read:

17

5970.  

As used in this chapter, the following phrases have the
18following meanings:

19(a) “Person” means any broker, dealer, municipal securities
20dealer, investment advisor, or investment firm.

21(b) “Regulatory agency” means the Department of Business
22Oversight, the securities administrators or other similar regulatory
23authority in any other state, the Securities and Exchange
24Commission, the Financial Industry Regulatory Authority, the
25Municipal Securities Rulemaking Board, the Commodity Futures
26Trading Commission, or any other self-regulatory organization.

27(c) “State or local government” means the state, any department,
28agency, board, commission, or authority of the state, or any city,
29city and county, county, public district, public corporation,
30authority, agency, board, commission, or other public entity.

31

SEC. 151.  

Section 6254.5 of the Government Code is amended
32to read:

33

6254.5.  

Notwithstanding any other law, if a state or local
34agency discloses a public record that is otherwise exempt from
35this chapter, to a member of the public, this disclosure shall
36constitute a waiver of the exemptions specified in Section 6254
37or 6254.7, or other similar provisions of law. For purposes of this
38section, “agency” includes a member, agent, officer, or employee
39of the agency acting within the scope of his or her membership,
40agency, office, or employment.

P190  1This section, however, shall not apply to disclosures:

2(a) Made pursuant to the Information Practices Act (Chapter 1
3(commencing with Section 1798) of Title 1.8 of Part 4 of Division
43 of the Civil Code) or discovery proceedings.

5(b) Made through other legal proceedings or as otherwise
6required by law.

7(c) Within the scope of disclosure of a statute that limits
8disclosure of specified writings to certain purposes.

9(d) Not required by law, and prohibited by formal action of an
10elected legislative body of the local agency that retains the writings.

11(e) Made to a governmental agency that agrees to treat the
12disclosed material as confidential. Only persons authorized in
13writing by the person in charge of the agency shall be permitted
14to obtain the information. Any information obtained by the agency
15shall only be used for purposes that are consistent with existing
16law.

17(f) Of records relating to a financial institution or an affiliate
18thereof, if the disclosures are made to the financial institution or
19affiliate by a state agency responsible for the regulation or
20supervision of the financial institution or affiliate.

21(g) Of records relating to a person who is subject to the
22jurisdiction of the Department of Business Oversight, if the
23disclosures are made to the person who is the subject of the records
24for the purpose of corrective action by that person, or, if a
25corporation, to an officer, director, or other key personnel of the
26corporation for the purpose of corrective action, or to any other
27person to the extent necessary to obtain information from that
28person for the purpose of an investigation by the Department of
29Business Oversight.

30(h) Made by the Commissioner of Business Oversight under
31Section 450, 452, 8009, or 18396 of the Financial Code.

32(i) Of records relating to a person who is subject to the
33jurisdiction of the Department of Managed Health Care, if the
34disclosures are made to the person who is the subject of the records
35for the purpose of corrective action by that person, or, if a
36corporation, to an officer, director, or other key personnel of the
37corporation for the purpose of corrective action, or to any other
38person to the extent necessary to obtain information from that
39person for the purpose of an investigation by the Department of
40Managed Health Care.

P191  1

SEC. 152.  

Section 7161 of the Government Code is amended
2to read:

3

7161.  

“Security” has the same meaning as defined in Section
48102 of the Commercial Code.

5

SEC. 153.  

Section 8594.15 of the Government Code is amended
6to read:

7

8594.15.  

(a) For purposes of this section, the following terms
8have the following meanings:

9(1) “Serious bodily injury” means an injury that involves, either
10at the time of the actual injury or at a later time, a substantial risk
11of serious and permanent disfigurement, a substantial risk of
12protracted loss or impairment of the function of any part of the
13body, or a break, fracture, or burn of the second or third degree.

14(2) “Yellow Alert” means a notification system, activated
15pursuant to subdivision (b), designed to issue and coordinate alerts
16with respect to a hit-and-run incident resulting in the death or injury
17of a person as described in Section 20001 of the Vehicle Code.

18(b) (1) If a hit-and-run incident is reported to a law enforcement
19agency, and that agency determines that the requirements of
20subdivision (c) are met, the agency may request the Department
21of the California Highway Patrol to activate a Yellow Alert. If the
22Department of the California Highway Patrol concurs that the
23requirements of subdivision (c) are met, it may activate a Yellow
24Alert within the geographic area requested by the investigating
25law enforcement agency.

26(2) Radio, television, and cable and satellite systems are
27encouraged, but are not required, to cooperate with disseminating
28the information contained in a Yellow Alert.

29(3) Upon activation of a Yellow Alert, the Department of the
30California Highway Patrol shall assist the investigating law
31enforcement agency by issuing the Yellow Alert via a changeable
32message sign.

33(4) If there are multiple Yellow Alerts requested, the Department
34of the California Highway Patrol may prioritize the activation of
35alerts based on any factor, including, but not limited to, the severity
36of the injury, the time elapsed between a hit-and-run incident and
37the request, or the likelihood that an activation would reasonably
38lead to the apprehension of a suspect.

39(c) A law enforcement agency may request that a Yellow Alert
40be activated if that agency determines that all of the following
P192  1conditions are met in regard to the investigation of the hit-and-run
2incident:

3(1) A person has been killed or has suffered serious bodily injury
4due to a hit-and-run incident.

5(2) There is an indication that a suspect has fled the scene
6utilizing the state highway system or is likely to be observed by
7the public on the state highway system.

8(3) The investigating law enforcement agency has additional
9information concerning the suspect or the suspect’s vehicle,
10including, but not limited to, any of the following:

11(A) The complete license plate number of the suspect’s vehicle.

12(B) A partial license plate number and additional unique
13identifying characteristics, such as the make, model, and color of
14the suspect’s vehicle, which could reasonably lead to the
15apprehension of the suspect.

16(C) The identity of the suspect.

17(4) Public dissemination of available information could either
18help avert further harm or accelerate apprehension of the suspect
19based on any factor, including, but not limited to, the severity of
20the injury, the time elapsed between a hit-and-run incident and the
21request, or the likelihood that an activation would reasonably lead
22to the apprehension of a suspect.

23(d) This section shall remain in effect only until January 1, 2019,
24and as of that date is repealed, unless a later enacted statute, that
25is enacted before January 1, 2019, deletes or extends that date.

26

SEC. 154.  

Section 8670.13 of the Government Code is amended
27to read:

28

8670.13.  

(a) The administrator shall periodically evaluate the
29feasibility of requiring new technologies to aid in prevention,
30response, containment, cleanup, and wildlife rehabilitation.

31(b) (1) On or before January 1, 2017, the administrator shall
32submit a report to the Legislature, pursuant to Section 9795,
33assessing the best achievable technology of equipment for oil spill
34prevention, preparedness, and response.

35(2) The report shall evaluate studies of estimated recovery
36system potential as a methodology for rating equipment in
37comparison to effective daily recovery capacity.

38(3) Pursuant to Section 10231.5, this subdivision is inoperative
39on July 1, 2020.

P193  1(c) (1) Considering, among other things, the report prepared
2pursuant to subdivision (b), the administrator shall update
3regulations governing the adequacy of oil spill contingency plans
4for best achievable technologies for oil spill prevention and
5response no later than July 1, 2018.

6(2) The updated regulations shall enhance the capabilities for
7prevention, response, containment, cleanup, and wildlife
8rehabilitation.

9(d) (1) The administrator shall direct the Harbor Safety
10Committees, established pursuant to Section 8670.23, to assess
11the presence and capability of tugs within their respective
12geographic areas of responsibility to provide emergency towing
13of tank vessels and nontank vessels to arrest their drift or otherwise
14 guide emergency transit.

15(2) The assessments for harbors in the San Francisco Bay area
16and in the Los Angeles-Long Beach area shall be initiated by May
171, 2016. The assessments for the other harbors shall be initiated
18by January 1, 2020.

19(3) The assessment shall consider, among other things, data
20from available United States Coast Guard Vessel Traffic Systems,
21relevant incident and accident data, any relevant simulation models,
22and identification of any transit areas where risks are higher.

23(4) The assessment shall consider the condition of tank and
24nontank vessels calling on harbors, including the United States
25Coast Guard’s marine inspection program and port state control
26program regarding risks due to a vessel’s hull or engineering
27material deficiencies, or inadequate crew training and
28 professionalism.

29

SEC. 155.  

Section 8670.13.3 of the Government Code is
30amended to read:

31

8670.13.3.  

If dispersants are used in response to an oil spill in
32state waters, the administrator shall provide written notification
33of their use to the Legislature within three days of the use. The
34administrator shall provide the Legislature with written justification
35of that use, including copies of key supporting documentation used
36by the federal on-scene coordinator and the federal Regional
37Response Team as soon as those materials are released. Within
38two months of the use of dispersants in state waters, the
39administrator shall also provide a report to the Legislature on the
40effectiveness of the dispersants used, including, but not limited to,
P194  1results of any available monitoring data to determine whether the
2dispersant use resulted in overall environmental benefit or harm.
3The written notification, justification, and report shall be submitted
4pursuant to Section 9795.

5

SEC. 156.  

Section 8670.28 of the Government Code is amended
6to read:

7

8670.28.  

(a) The administrator, taking into consideration the
8facility or vessel contingency plan requirements of the State Lands
9Commission, the Office of the State Fire Marshal, the California
10Coastal Commission, and other state and federal agencies, shall
11adopt and implement regulations governing the adequacy of oil
12spill contingency plans to be prepared and implemented under this
13article. All regulations shall be developed in consultation with the
14Oil Spill Technical Advisory Committee, and shall be consistent
15with the California oil spill contingency plan and not in conflict
16with the National Contingency Plan. The regulations shall provide
17for the best achievable protection of the waters and natural
18resources of the state. The regulations shall permit the
19development, application, and use of an oil spill contingency plan
20for similar vessels, pipelines, terminals, and facilities within a
21single company or organization, and across companies and
22organizations. The regulations shall, at a minimum, ensure all of
23the following:

24(1) All areas of state waters are at all times protected by
25prevention, response, containment, and cleanup equipment and
26operations.

27(2) Standards set for response, containment, and cleanup
28equipment and operations are maintained and regularly improved
29to protect the resources of the state.

30(3) All appropriate personnel employed by operators required
31to have a contingency plan receive training in oil spill response
32and cleanup equipment usage and operations.

33(4) Each oil spill contingency plan provides for appropriate
34financial or contractual arrangements for all necessary equipment
35and services for the response, containment, and cleanup of a
36reasonable worst case oil spill scenario for each area the plan
37addresses.

38(5) Each oil spill contingency plan demonstrates that all
39protection measures are being taken to reduce the possibility of
40an oil spill occurring as a result of the operation of the facility or
P195  1vessel. The protection measures shall include, but not be limited
2to, response to disabled vessels and identification of those measures
3taken to comply with requirements of Division 7.8 (commencing
4with Section 8750) of the Public Resources Code.

5(6) Each oil spill contingency plan identifies the types of
6equipment that can be used, the location of the equipment, and the
7time taken to deliver the equipment.

8(7) Each facility, as determined by the administrator, conducts
9a hazard and operability study to identify the hazards associated
10with the operation of the facility, including the use of the facility
11by vessels, due to operating error, equipment failure, and external
12events. For the hazards identified in the hazard and operability
13studies, the facility shall conduct an offsite consequence analysis
14that, for the most likely hazards, assumes pessimistic water and
15air dispersion and other adverse environmental conditions.

16(8) Each oil spill contingency plan contains a list of contacts to
17call in the event of a drill, threatened discharge of oil, or discharge
18of oil.

19(9) Each oil spill contingency plan identifies the measures to
20be taken to protect the recreational and environmentally sensitive
21areas that would be threatened by a reasonable worst case oil spill
22scenario.

23(10) Standards for determining a reasonable worst case oil spill.
24However, for a nontank vessel, the reasonable worst case is a spill
25of the total volume of the largest fuel tank on the nontank vessel.

26(11) Each oil spill contingency plan specifies an agent for service
27of process. The agent shall be located in this state.

28(b) The regulations and guidelines adopted pursuant to this
29section shall also include provisions to provide for public review
30and comment on submitted oil spill contingency plans.

31(c) The regulations adopted pursuant to this section shall
32specifically address the types of equipment that will be necessary,
33the maximum time that will be allowed for deployment, the
34maximum distance to cooperating response entities, the amounts
35of dispersant, and the maximum time required for application
36 should the use of dispersants be approved. Upon a determination
37by the administrator that booming is appropriate at the site and
38necessary to provide best achievable protection, the regulations
39shall require that vessels engaged in lightering operations be
40boomed prior to the commencement of operations.

P196  1(d) The administrator shall adopt regulations and guidelines for
2oil spill contingency plans with regard to mobile transfer units,
3small marine fueling facilities, and vessels carrying oil as secondary
4cargo that acknowledge the reduced risk of damage from oil spills
5from those units, facilities, and vessels while maintaining the best
6achievable protection for the public health and safety and the
7environment.

8

SEC. 157.  

Section 8670.95 of the Government Code is amended
9and renumbered to read:

10

8670.5.5.  

If any provision of this chapter or the application
11thereof to any person or circumstances is held invalid, that
12invalidity shall not affect other provisions or applications of the
13chapter that can be given effect without the invalid provision or
14application, and to this end the provisions of this chapter are
15severable.

16

SEC. 158.  

Section 14670.36 of the Government Code is
17amended to read:

18

14670.36.  

(a) Notwithstanding any other law, the Director of
19General Services, with the consent of the Director of
20Developmental Services, may, in the best interests of the state, let
21to any person or entity real property not exceeding 20 acres located
22within the grounds of the Fairview Developmental Center for a
23period not to exceed 55 years, at a price that will permit the
24development of affordable housing for people with developmental
25disabilities.

26(b) Notwithstanding any other law, the lease authorized by this
27section may be assignable subject to approval by the Director of
28General Services, with the consent of the Director of
29Developmental Services. The lease shall do all of the following:

30(1) Provide housing for individuals who qualify based upon
31criteria established by the Department of Developmental Services.
32A minimum of 20 percent of the housing units developed shall be
33available and affordable to individuals with developmental
34disabilities served by a regional center pursuant to the Lanterman
35Developmental Disabilities Services Act (Chapter 1 (commencing
36with Section 4500) of Division 4.5 of the Welfare and Institutions
37Code). When filling vacancies, priority for housing shall be given
38to individuals transitioning from a developmental center or at risk
39for admission to a developmental center.

P197  1(2) Allow for lease revenues or other proceeds received by the
2state under the leases for projects authorized by this section and
3Section 14670.35, to be utilized by the Department of
4Developmental Services to support individuals with developmental
5disabilities, including subsidizing rents for those individuals.

6(3) Include provisions authorizing the Department of
7Developmental Services, or its designee, to provide management
8oversight and administration over the housing for individuals with
9developmental disabilities and the general operations of the project
10sufficient to ensure the purposes of the lease are being carried out
11and to protect the financial interests of the state.

12(c) The Department of Developmental Services may share in
13proceeds, if any, generated from the overall operation of the project
14developed pursuant to this section. All proceeds received from the
15project authorized by this section and the project authorized by
16Section 14670.35, in accordance with the terms of the lease, shall
17be deposited in the Department of Developmental Services Trust
18Fund, which is hereby created in the State Treasury. Moneys in
19the Department of Developmental Services Trust Fund shall be
20used, upon appropriation by the Legislature, for the purpose of
21providing housing and transitional services for people with
22developmental disabilities. Any funds not needed to support
23individuals with developmental disabilities shall be transferred to
24the General Fund upon the order of the Director of Finance.

25(d) The Director of General Services, with the consent of the
26Director of Developmental Services, may enter into a lease
27pursuant to this section at less than market value, provided that
28the cost of administering the lease is recovered.

29(e) The project and lease, including off-site improvements
30directly related to the housing project authorized by this section,
31shall not be deemed a “public works contract” as defined by
32Section 1101 of the Public Contract Code. However, construction
33projects contemplated by the lease authorized by this section shall
34be considered “public works,” as defined by paragraph (1) of
35subdivision (a) of Section 1720 of the Labor Code, for the purpose
36of prevailing wage requirements.

37

SEC. 159.  

Section 17581.9 of the Government Code is amended
38to read:

39

17581.9.  

(a) (1) The sum of three billion ninety-eight million
40four hundred fifty-five thousand dollars ($3,098,455,000) is hereby
P198  1appropriated from the General Fund to the Superintendent of Public
2Instruction for allocation to school districts and county
3superintendents of schools in the manner, and for the purposes,
4set forth in this section.

5(2) The sum of six hundred four million forty-three thousand
6dollars ($604,043,000) is hereby appropriated from the General
7Fund to the Chancellor of the California Community Colleges for
8allocation to community college districts in the manner, and for
9the purposes, set forth in this section.

10(3) For purposes of this section, a school district includes a
11county office of education and a charter school.

12(b) (1) (A) The Superintendent of Public Instruction shall
13allocate forty million dollars ($40,000,000) of the funds
14appropriated pursuant to paragraph (1) of subdivision (a) to county
15superintendents of schools, as follows:

16(i) Each county superintendent of schools shall be allocated the
17greater of: (I) thirty thousand dollars ($30,000), multiplied by the
18number of school districts for which the county superintendent of
19schools has jurisdiction pursuant to Section 1253 of the Education
20Code; or (II) eighty thousand dollars ($80,000).

21(ii) After the allocations pursuant to clause (i), the balance shall
22be allocated in an equal amount per unit of regular average daily
23attendance, as those average daily attendance numbers are reported
24at the time of the second principal apportionment for the 2014-15
25fiscal year.

26(B) For purposes of allocating funding pursuant to this paragraph
27only, “regular average daily attendance” means the aggregate
28number of units of average daily attendance within the county
29attributable to all school districts for which the county
30superintendent of schools has jurisdiction pursuant to Section 1253
31of the Education Code, charter schools within the county, and the
32schools operated by the county superintendent of schools.

33(2) It is the intent of the Legislature that county offices of
34education will prioritize the use of funds allocated pursuant to
35paragraph (1) for investments necessary to support new
36responsibilities required under the evolving accountability structure
37of the local control funding formula and develop greater capacity
38and consistency within and between county offices of education.
39A county office of education may encumber funds apportioned
P199  1pursuant to this section at any time during the 2015-16 or 2016-17
2fiscal year.

3(3) The Superintendent shall allocate three billion fifty-eight
4million four hundred fifty-five thousand dollars ($3,058,455,000)
5of the funds appropriated pursuant to paragraph (1) of subdivision
6(a) to school districts on the basis of an equal amount per unit of
7regular average daily attendance, as those average daily attendance
8numbers are reported at the time of the second principal
9apportionment for the 2014-15 fiscal year.

10(c) The Chancellor of the California Community Colleges shall
11allocate the funds appropriated pursuant to paragraph (2) of
12subdivision (a) to community college districts on the basis of an
13equal amount per enrolled full-time equivalent student, as those
14numbers of students are reported at the time of the second principal
15apportionment for the 2014-15 fiscal year.

16(d) Allocations made pursuant to this section shall first satisfy
17any outstanding claims pursuant to Section 6 of Article XIII B of
18the California Constitution for reimbursement of state-mandated
19local program costs for any fiscal year. Notwithstanding Section
2012419.5 and any amounts that are paid in satisfaction of
21outstanding claims for reimbursement of state-mandated local
22program costs, the Controller may audit any claim as allowed by
23law, and may recover any amount owed by school districts or
24community college districts pursuant to an audit only by reducing
25amounts owed by the state to school districts or community college
26districts for any other mandate claims. Under no circumstances
27shall a school district or community college district be required to
28remit funding back to the state to pay for disallowed costs identified
29by a Controller audit of claimed reimbursable state-mandated local
30program costs. The Controller shall not recover any amount owed
31by a school district or community college district pursuant to an
32audit of claimed reimbursable state-mandated local program costs
33by reducing any amount owed a school district or community
34college district for any purpose other than amounts owed for any
35other mandate claims. The Controller shall apply amounts received
36by each school district or community college district against any
37balances of unpaid claims for reimbursement of state-mandated
38local program costs and interest in chronological order beginning
39with the earliest claim. The Controller shall report to each school
40district and community college district the amounts of any claims
P200  1and interest that are offset from funds provided pursuant to this
2section, and shall report a summary of the amounts offset for each
3mandate for each fiscal year to the Department of Finance and the
4fiscal committees of the Legislature.

5(e) (1) The governing board of a school district or community
6college district may expend the one-time funds received pursuant
7to this section for any purpose, as determined by the governing
8board.

9(2) It is the intent of the Legislature that school districts shall
10prioritize the use of these one-time funds for professional
11development, induction for beginning teachers with a focus on
12relevant mentoring, instructional materials, technology
13infrastructure, and any other investments necessary to support
14implementation of the common core standards in English language
15arts and mathematics, the implementation of English language
16development standards, and the implementation of the Next
17Generation Science standards.

18(f) For purposes of making the computations required by Section
198 of Article XVI of the California Constitution, three hundred
20nineteen million two hundred thirty-one thousand dollars
21($319,231,000) of the appropriations made by subdivision (a) shall
22be deemed to be “General Fund revenues appropriated for school
23districts,” as defined in subdivision (c) of Section 41202 of the
24Education Code, for the 2013-14 fiscal year, and included within
25the “total allocations to school districts and community college
26districts from General Fund proceeds of taxes appropriated pursuant
27to Article XIII B,” as defined in subdivision (e) of Section 41202
28of the Education Code, for the 2013-14 fiscal year.

29(g) For purposes of making the computations required by Section
308 of Article XVI of the California Constitution, ninety-three million
31five hundred twenty-nine thousand dollars ($93,529,000) of the
32appropriations made by subdivision (a) shall be deemed to be
33“General Fund revenues appropriated for community college
34 districts,” as defined in subdivision (d) of Section 41202 of the
35Education Code, for the 2013-14 fiscal year, and included within
36the “total allocations to school districts and community college
37districts from General Fund proceeds of taxes appropriated pursuant
38to Article XIII B,” as defined in subdivision (e) of Section 41202
39of the Education Code, for the 2013-14 fiscal year.

P201  1(h) For purposes of making the computations required by Section
28 of Article XVI of the California Constitution, two billion seven
3hundred forty-eight million three hundred forty-nine thousand
4dollars ($2,748,349,000) of the appropriations made by subdivision
5(a) shall be deemed to be “General Fund revenues appropriated
6for school districts,” as defined in subdivision (c) of Section 41202
7of the Education Code, for the 2014-15 fiscal year, and included
8within the “total allocations to school districts and community
9college districts from General Fund proceeds of taxes appropriated
10pursuant to Article XIII B,” as defined in subdivision (e) of Section
1141202 of the Education Code, for the 2014-15 fiscal year.

12(i) For purposes of making the computations required by Section
138 of Article XVI of the California Constitution, three hundred
14ninety-three million two hundred twenty thousand dollars
15($393,220,000) of the appropriations made by subdivision (a) shall
16be deemed to be “General Fund revenues appropriated for
17community college districts,” as defined in subdivision (d) of
18Section 41202 of the Education Code, for the 2014-15 fiscal year,
19and included within the “total allocations to school districts and
20community college districts from General Fund proceeds of taxes
21appropriated pursuant to Article XIII B,” as defined in subdivision
22(e) of Section 41202 of the Education Code, for the 2014-15 fiscal
23year.

24(j) For purposes of making the computations required by Section
258 of Article XVI of the California Constitution, one hundred
26seventeen million two hundred ninety-four thousand dollars
27($117,294,000) of the appropriations made by subdivision (a) shall
28be deemed to be “General Fund revenues appropriated for
29community college districts,” as defined in subdivision (d) of
30Section 41202 of the Education Code, for the 2015-16 fiscal year,
31and included within the “total allocations to school districts and
32community college districts from General Fund proceeds of taxes
33appropriated pursuant to Article XIII B,” as defined in subdivision
34(e) of Section 41202 of the Education Code, for the 2015-16 fiscal
35year.

36(k) For purposes of making the computations required by Section
378 of Article XVI of the California Constitution, thirty million eight
38hundred seventy-five thousand dollars ($30,875,000) of the
39appropriations made by subdivision (a) shall be deemed to be
40“General Fund revenues appropriated for school districts,” as
P202  1defined in subdivision (c) of Section 41202 of the Education Code,
2for the 2015-16 fiscal year, and included within the “total
3allocations to school districts and community college districts from
4General Fund proceeds of taxes appropriated pursuant to Article
5XIII B,” as defined in subdivision (e) of Section 41202 of the
6Education Code, for the 2015-16 fiscal year.

7

SEC. 160.  

Section 19130 of the Government Code is amended
8to read:

9

19130.  

The purpose of this article is to establish standards for
10the use of personal services contracts.

11(a) Personal services contracting is permissible to achieve cost
12savings when all the following conditions are met:

13(1) The contracting agency clearly demonstrates that the
14proposed contract will result in actual overall cost savings to the
15state, provided that:

16(A) In comparing costs, there shall be included the state’s
17additional cost of providing the same service as proposed by a
18contractor. These additional costs shall include the salaries and
19benefits of additional staff that would be needed and the cost of
20additional space, equipment, and materials needed to perform the
21function.

22(B) In comparing costs, there shall not be included the state’s
23indirect overhead costs unless these costs can be attributed solely
24to the function in question and would not exist if that function was
25not performed in state service. Indirect overhead costs shall mean
26the pro rata share of existing administrative salaries and benefits,
27rent, equipment costs, utilities, and materials.

28(C) In comparing costs, there shall be included in the cost of a
29contractor providing a service any continuing state costs that would
30be directly associated with the contracted function. These
31continuing state costs shall include, but not be limited to, those
32for inspection, supervision, and monitoring.

33(2) Proposals to contract out work shall not be approved solely
34on the basis that savings will result from lower contractor pay rates
35or benefits. Proposals to contract out work shall be eligible for
36approval if the contractor’s wages are at the industry’s level and
37do not significantly undercut state pay rates.

38(3) The contract does not cause the displacement of civil service
39employees. The term “displacement” includes layoff, demotion,
40involuntary transfer to a new class, involuntary transfer to a new
P203  1location requiring a change of residence, and time base reductions.
2Displacement does not include changes in shifts or days off, nor
3does it include reassignment to other positions within the same
4class and general location.

5(4) The contract does not adversely affect the state’s affirmative
6action efforts.

7(5) The savings shall be large enough to ensure that they will
8not be eliminated by private sector and state cost fluctuations that
9could normally be expected during the contracting period.

10(6) The amount of savings clearly justify the size and duration
11of the contracting agreement.

12(7) The contract is awarded through a publicized, competitive
13bidding process.

14(8) The contract includes specific provisions pertaining to the
15qualifications of the staff that will perform the work under the
16contract, as well as assurance that the contractor’s hiring practices
17meet applicable nondiscrimination, affirmative action standards.

18(9) The potential for future economic risk to the state from
19potential contractor rate increases is minimal.

20(10) The contract is with a firm. A “firm” means a corporation,
21partnership, nonprofit organization, or sole proprietorship.

22(11) The potential economic advantage of contracting is not
23outweighed by the public’s interest in having a particular function
24performed directly by state government.

25(b) Personal services contracting also shall be permissible when
26any of the following conditions are met:

27(1) The functions contracted are exempted from civil service
28by Section 4 of Article VII of the California Constitution, which
29describes exempt appointments.

30(2) The contract is for a new state function and the Legislature
31has specifically mandated or authorized the performance of the
32work by independent contractors.

33(3) The services contracted are not available within civil service,
34cannot be performed satisfactorily by civil service employees, or
35are of such a highly specialized or technical nature that the
36necessary expert knowledge, experience, and ability are not
37available through the civil service system.

38(4) The services are incidental to a contract for the purchase or
39lease of real or personal property. Contracts under this criterion,
40known as “service agreements,” shall include, but not be limited
P204  1to, agreements to service or maintain office equipment or
2computers that are leased or rented.

3(5) The legislative, administrative, or legal goals and purposes
4cannot be accomplished through the utilization of persons selected
5pursuant to the regular civil service system. Contracts are
6permissible under this criterion to protect against a conflict of
7interest or to ensure independent and unbiased findings in cases
8where there is a clear need for a different, outside perspective.
9These contracts shall include, but not be limited to, obtaining expert
10witnesses in litigation.

11(6) The nature of the work is such that the standards of this code
12for emergency appointments apply. These contracts shall conform
13with Article 8 (commencing with Section 19888) of Chapter 2.5
14of Part 2.6.

15(7) State agencies need private counsel because a conflict of
16interest on the part of the Attorney General’s office prevents it
17from representing the agency without compromising its position.
18These contracts shall require the written consent of the Attorney
19General, pursuant to Section 11040.

20(8) The contractor will provide equipment, materials, facilities,
21or support services that could not feasibly be provided by the state
22in the location where the services are to be performed.

23(9) The contractor will conduct training courses for which
24appropriately qualified civil service instructors are not available,
25provided that permanent instructor positions in academies or similar
26settings shall be filled through civil service appointment.

27(10) The services are of such an urgent, temporary, or occasional
28nature that the delay incumbent in their implementation under civil
29service would frustrate their very purpose.

30(c) All persons who provide services to the state under
31conditions the board determines constitute an employment
32relationship shall, unless exempted from civil service by Section
334 of Article VII of the California Constitution, be retained under
34an appropriate civil service appointment.

35

SEC. 161.  

Section 19241 of the Government Code, as added
36by Section 5 of Chapter 356 of the Statutes of 2015, is amended
37to read:

38

19241.  

(a) The department, consistent with board rules, shall
39be responsible for the implementation of this chapter, which may
40provide for the establishment of eligibility criteria for participation,
P205  1special job classifications, examination techniques, and
2appointment and appeals procedures.

3(b) This section shall become operative on January 1, 2021.

4

SEC. 162.  

Section 22865 of the Government Code is amended
5to read:

6

22865.  

Not later than 30 days prior to the approval of benefits
7and premium readjustments authorized under Section 22864, the
8board shall provide an initial estimate of proposed changes and
9costs in writing to the Joint Legislative Budget Committee, the
10chairpersons of the committees and subcommittees in each house
11of the Legislature that consider the Public Employees’ Retirement
12System’s budget and activities, the Controller, the Trustees of the
13California State University, the Department of Human Resources,
14the Director of Finance, and the Legislative Analyst.

15

SEC. 163.  

Section 34886 of the Government Code is amended
16to read:

17

34886.  

(a) Notwithstanding Section 34871 or any other law,
18the legislative body of a city with a population of fewer than
19100,000 people may adopt an ordinance that requires the members
20of the legislative body to be elected by district or by district with
21an elective mayor, as described in subdivisions (a) and (c) of
22Section 34871, without submitting the ordinance to the voters for
23approval. An ordinance adopted pursuant to this subdivision shall
24include a declaration that the change in the method of electing
25members of the legislative body is being made in furtherance of
26the purposes of the California Voting Rights Act of 2001 (Chapter
271.5 (commencing with Section 14025) of Division 14 of the
28Elections Code).

29(b) For purposes of this section, the population of a city shall
30be determined by the most recent federal decennial census.

31

SEC. 164.  

Section 53515 of the Government Code is amended
32to read:

33

53515.  

(a) General obligation bonds issued and sold by or on
34behalf of a local agency shall be secured by a statutory lien on all
35revenues received pursuant to the levy and collection of the tax.
36The lien shall automatically arise without the need for any action
37or authorization by the local agency or its governing body. The
38lien shall be valid and binding from the time the bonds are executed
39and delivered. The revenues received pursuant to the levy and
40collection of the tax shall be immediately subject to the lien, and
P206  1the lien shall immediately attach to the revenues and be effective,
2binding, and enforceable against the local agency, its successors,
3transferees, and creditors, and all others asserting rights therein,
4irrespective of whether those parties have notice of the lien and
5without the need for any physical delivery, recordation, filing, or
6further act.

7(b) This section is not intended to supplement or limit a local
8agency’s power to issue general obligation bonds conferred by
9any other law.

10(c) For purposes of this section, both of the following definitions
11apply:

12(1) “General obligation bonds” means bonds, warrants, notes,
13or other evidence of indebtedness of a local agency payable, both
14principal and interest, from the proceeds of ad valorem taxes that
15may be levied pursuant to paragraphs (2) and (3) of subdivision
16(b) of Section 1 of Article XIII A of the California Constitution.

17(2) “Local agency” means any city, county, city and county,
18school district, community college district, authority, or special
19district.

20

SEC. 165.  

Section 56332 of the Government Code is amended
21to read:

22

56332.  

(a) The independent special district selection committee
23shall consist of the presiding officer of the legislative body of each
24independent special district. However, if the presiding officer of
25an independent special district is unable to participate in a meeting
26or election of the independent special district selection committee,
27the legislative body of the district may appoint one of its members
28as an alternate to participate in the selection committee in the
29presiding officer’s place. Those districts shall include districts
30located wholly within the county and those containing territory
31within the county representing 50 percent or more of the assessed
32value of taxable property of the district, as shown on the last
33equalized county assessment roll. Each member of the committee
34shall be entitled to one vote for each independent special district
35of which he or she is the presiding officer or his or her alternate
36as designated by the governing body. Members representing a
37majority of the eligible districts shall constitute a quorum.

38(b) The executive officer shall call and give written notice of
39all meetings of the members of the selection committee. A meeting
40shall be called and held under one of the following circumstances:

P207  1(1) Whenever the executive officer anticipates that a vacancy
2will occur within the next 90 days among the members or alternate
3member representing independent special districts on the
4commission.

5(2) Whenever a vacancy exists among the members or alternate
6member representing independent special districts upon the
7commission.

8(3) Upon receipt of a written request by one or more members
9of the selection committee representing districts having 10 percent
10or more of the assessed value of taxable property within the county,
11as shown on the last equalized county assessment roll.

12(c) The selection committee shall appoint two regular members
13and one alternate member to the commission. The members so
14appointed shall be elected or appointed members of the legislative
15body of an independent special district residing within the county
16but shall not be members of the legislative body of a city or county.
17If one of the regular district members is absent from a commission
18meeting or disqualifies himself or herself from participating in a
19meeting, the alternate district member may serve and vote in place
20of the regular district member for that meeting. Service on the
21commission by a regular district member shall not disqualify, or
22be cause for disqualification of, the member from acting on
23proposals affecting the special district on whose legislative body
24the member serves. The special district selection committee may,
25at the time it appoints a member or alternate, provide that the
26member or alternate is disqualified from voting on proposals
27affecting the district on whose legislative body the member serves.

28(d) If the office of a regular district member becomes vacant,
29the alternate member may serve and vote in place of the former
30regular district member until the appointment and qualification of
31a regular district member to fill the vacancy.

32(e) A majority of the independent special district selection
33committee may determine to conduct the committee’s business by
34mail, including holding all elections by mailed ballot, pursuant to
35subdivision (f).

36(f) If the independent special district selection committee has
37determined to conduct the committee’s business by mail or if the
38executive officer determines that a meeting of the special district
39selection committee, for the purpose of appointing the special
40district members or filling vacancies, is not feasible, the executive
P208  1officer shall conduct the business of the committee by mail.
2Elections by mail shall be conducted as provided in this
3subdivision.

4(1) The executive officer shall prepare and deliver a call for
5nominations to each eligible district. The presiding officer, or his
6or her alternate as designated by the governing body, may respond
7in writing by the date specified in the call for nominations, which
8date shall be at least 30 days from the date on which the executive
9officer mailed the call for nominations to the eligible district.

10(2) At the end of the nominating period, if only one candidate
11is nominated for a vacant seat, that candidate shall be deemed
12appointed. If two or more candidates are nominated, the executive
13officer shall prepare and deliver one ballot and voting instructions
14to each eligible district. The ballot shall include the names of all
15nominees and the office for which each was nominated. Each
16presiding officer, or his or her alternate as designated by the
17governing body, shall return the ballot to the executive officer by
18the date specified in the voting instructions, which date shall be
19at least 30 days from the date on which the executive officer mailed
20the ballot to the eligible district.

21(3) The call for nominations, ballots, and voting instructions
22shall be delivered by certified mail to each eligible district. As an
23alternative to the delivery by certified mail, the executive officer,
24with prior concurrence of the presiding officer or his or her
25alternate as designated by the governing body, may transmit
26materials by electronic mail.

27(4) If the executive officer has transmitted the call for
28nominations or ballots by electronic mail, the presiding officer, or
29his or her alternate as designated by the governing body, may
30respond to the executive officer by electronic mail.

31(5) Each returned nomination and ballot shall be signed by the
32presiding officer or his or her alternate as designated by the
33governing body of the eligible district.

34(6) For an election to be valid, at least a quorum of the special
35districts must submit valid ballots. The candidate receiving the
36most votes shall be elected, unless another procedure has been
37adopted by the selection committee. Any nomination and ballot
38received by the executive officer after the date specified is invalid,
39provided, however, that if a quorum of ballots is not received by
40that date, the executive officer shall extend the date to submit
P209  1ballots by 60 days and notify all districts of the extension. The
2executive officer shall announce the results of the election within
3seven days of the date specified.

4(7) All election materials shall be retained by the executive
5officer for a period of at least six months after the announcement
6of the election results.

7(g) For purposes of this section, “executive officer” means the
8executive officer or designee as authorized by the commission.

9

SEC. 166.  

Section 82015 of the Government Code is amended
10to read:

11

82015.  

(a) “Contribution” means a payment, a forgiveness of
12a loan, a payment of a loan by a third party, or an enforceable
13promise to make a payment except to the extent that full and
14adequate consideration is received, unless it is clear from the
15surrounding circumstances that it is not made for political purposes.

16(b) (1) A payment made at the behest of a committee, as defined
17in subdivision (a) of Section 82013, is a contribution to the
18committee unless full and adequate consideration is received from
19the committee for making the payment.

20(2) A payment made at the behest of a candidate is a contribution
21to the candidate unless the criteria in either subparagraph (A) or
22(B) are satisfied:

23(A) Full and adequate consideration is received from the
24candidate.

25(B) It is clear from the surrounding circumstances that the
26payment was made for purposes unrelated to his or her candidacy
27for elective office. The following types of payments are presumed
28to be for purposes unrelated to a candidate’s candidacy for elective
29office:

30(i) A payment made principally for personal purposes, in which
31case it may be considered a gift under the provisions of Section
3282028. Payments that are otherwise subject to the limits of Section
3386203 are presumed to be principally for personal purposes.

34(ii) A payment made by a state, local, or federal governmental
35agency or by a nonprofit organization that is exempt from taxation
36under Section 501(c)(3) of the Internal Revenue Code. A payment
37by a state, local, or federal governmental agency that is made
38principally for legislative or governmental purposes is governed
39exclusively by this clause and, therefore, is not subject to the
40reporting requirement described in clause (iii).

P210  1(iii) A payment not covered by clause (i), made principally for
2legislative, governmental, or charitable purposes, in which case it
3is neither a gift nor a contribution. However, payments of this type
4that are made at the behest of a candidate who is an elected officer
5shall be reported within 30 days following the date on which the
6payment or payments equal or exceed five thousand dollars
7($5,000) in the aggregate from the same source in the same
8calendar year in which they are made. The report shall be filed by
9the elected officer with the elected officer’s agency and shall be
10a public record subject to inspection and copying pursuant to
11Section 81008. The report shall contain the following information:
12name of payor, address of payor, amount of the payment, date or
13dates the payment or payments were made, the name and address
14of the payee, a brief description of the goods or services provided
15or purchased, if any, and a description of the specific purpose or
16event for which the payment or payments were made. Once the
17five-thousand-dollar ($5,000) aggregate threshold from a single
18source has been reached for a calendar year, all payments for the
19calendar year made by that source shall be disclosed within 30
20days after the date the threshold was reached or the payment was
21made, whichever occurs later. Within 30 days after receipt of the
22report, state agencies shall forward a copy of these reports to the
23Commission, and local agencies shall forward a copy of these
24reports to the officer with whom elected officers of that agency
25file their campaign statements.

26(C) For purposes of subparagraph (B), a payment is made for
27purposes related to a candidate’s candidacy for elective office if
28all or a portion of the payment is used for election-related activities.
29For purposes of this subparagraph, “election-related activities”
30shall include, but are not limited to, the following:

31(i) Communications that contain express advocacy of the
32nomination or election of the candidate or the defeat of his or her
33opponent.

34(ii) Communications that contain reference to the candidate’s
35candidacy for elective office, the candidate’s election campaign,
36or the candidate’s or his or her opponent’s qualifications for
37elective office.

38(iii) Solicitation of contributions to the candidate or to third
39persons for use in support of the candidate or in opposition to his
40or her opponent.

P211  1(iv) Arranging, coordinating, developing, writing, distributing,
2preparing, or planning of any communication or activity described
3in clause (i), (ii), or (iii).

4(v) Recruiting or coordinating campaign activities of campaign
5volunteers on behalf of the candidate.

6(vi) Preparing campaign budgets.

7(vii) Preparing campaign finance disclosure statements.

8(viii) Communications directed to voters or potential voters as
9part of activities encouraging or assisting persons to vote if the
10communication contains express advocacy of the nomination or
11election of the candidate or the defeat of his or her opponent.

12(D) A contribution made at the behest of a candidate for a
13different candidate or to a committee not controlled by the
14behesting candidate is not a contribution to the behesting candidate.

15(3) A payment made at the behest of a member of the Public
16Utilities Commission, made principally for legislative,
17governmental, or charitable purposes, is not a contribution.
18However, payments of this type shall be reported within 30 days
19following the date on which the payment or payments equal or
20exceed five thousand dollars ($5,000) in the aggregate from the
21same source in the same calendar year in which they are made.
22The report shall be filed by the member with the Public Utilities
23Commission and shall be a public record subject to inspection and
24copying pursuant to Section 81008. The report shall contain the
25following information: name of payor, address of payor, amount
26of the payment, date or dates the payment or payments were made,
27the name and address of the payee, a brief description of the goods
28or services provided or purchased, if any, and a description of the
29specific purpose or event for which the payment or payments were
30made. Once the five-thousand-dollar ($5,000) aggregate threshold
31from a single source has been reached for a calendar year, all
32payments for the calendar year made by that source shall be
33disclosed within 30 days after the date the threshold was reached
34or the payment was made, whichever occurs later. Within 30 days
35after receipt of the report, the Public Utilities Commission shall
36forward a copy of these reports to the Fair Political Practices
37Commission.

38(c) “Contribution” includes the purchase of tickets for events
39such as dinners, luncheons, rallies, and similar fundraising events;
40the candidate’s own money or property used on behalf of his or
P212  1her candidacy, other than personal funds of the candidate used to
2pay either a filing fee for a declaration of candidacy or a candidate
3statement prepared pursuant to Section 13307 of the Elections
4Code; the granting of discounts or rebates not extended to the
5public generally or the granting of discounts or rebates by television
6and radio stations and newspapers not extended on an equal basis
7to all candidates for the same office; the payment of compensation
8by any person for the personal services or expenses of any other
9person if the services are rendered or expenses incurred on behalf
10of a candidate or committee without payment of full and adequate
11consideration.

12(d) “Contribution” further includes any transfer of anything of
13value received by a committee from another committee, unless
14full and adequate consideration is received.

15(e) “Contribution” does not include amounts received pursuant
16to an enforceable promise to the extent those amounts have been
17previously reported as a contribution. However, the fact that those
18amounts have been received shall be indicated in the appropriate
19campaign statement.

20(f) (1) Except as provided in paragraph (2) or (3), “contribution”
21does not include a payment made by an occupant of a home or
22office for costs related to any meeting or fundraising event held
23in the occupant’s home or office if the costs for the meeting or
24fundraising event are five hundred dollars ($500) or less.

25(2) “Contribution” includes a payment made by a lobbyist or a
26cohabitant of a lobbyist for costs related to a fundraising event
27held at the home of the lobbyist, including the value of the use of
28the home as a fundraising event venue. A payment described in
29this paragraph shall be attributable to the lobbyist for purposes of
30Section 85702.

31(3) “Contribution” includes a payment made by a lobbying firm
32for costs related to a fundraising event held at the office of the
33lobbying firm, including the value of the use of the office as a
34fundraising event venue.

35(g) Notwithstanding the foregoing definition of “contribution,”
36the term does not include volunteer personal services or payments
37made by any individual for his or her own travel expenses if the
38payments are made voluntarily without any understanding or
39agreement that they shall be, directly or indirectly, repaid to him
40or her.

P213  1(h) “Contribution” further includes the payment of public
2moneys by a state or local governmental agency for a
3communication to the public that satisfies both of the following:

4(1) The communication expressly advocates the election or
5defeat of a clearly identified candidate or the qualification, passage,
6or defeat of a clearly identified measure, or, taken as a whole and
7in context, unambiguously urges a particular result in an election.

8(2) The communication is made at the behest of the affected
9candidate or committee.

10(i) “Contribution” further includes a payment made by a person
11to a multipurpose organization as defined and described in Section
1284222.

13

SEC. 167.  

Section 83123.6 of the Government Code is amended
14to read:

15

83123.6.  

(a) Upon mutual agreement between the Commission
16and the City Council of the City of Stockton, the Commission is
17authorized to assume primary responsibility for the impartial,
18effective administration, implementation, and enforcement of a
19local campaign finance reform ordinance passed by the City
20Council of the City of Stockton. The Commission is authorized to
21be the civil prosecutor responsible for the civil enforcement of that
22local campaign finance reform ordinance in accordance with this
23title. As the civil prosecutor of the City of Stockton’s local
24campaign finance reform ordinance, the Commission may do both
25of the following:

26(1) Investigate possible violations of the local campaign finance
27reform ordinance.

28(2) Bring administrative actions in accordance with this title
29and Chapter 5 (commencing with Section 11500) of Part 1 of
30Division 3 of Title 2.

31(b) Any local campaign finance reform ordinance of the City
32of Stockton enforced by the Commission pursuant to this section
33shall comply with this title.

34(c) The City Council of the City of Stockton shall consult with
35the Commission before adopting and amending any local campaign
36finance reform ordinance that is subsequently enforced by the
37Commission pursuant to this section.

38(d) (1) The City Council of the City of Stockton and the
39Commission may enter into any agreements necessary and
40appropriate to carry out the provisions of this section, including
P214  1agreements pertaining to any necessary reimbursement of state
2costs with city funds for costs incurred by the Commission in
3administering, implementing, or enforcing a local campaign finance
4reform ordinance pursuant to this section.

5(2) An agreement entered into pursuant to this subdivision shall
6not contain any form of a cancellation fee, a liquidated damages
7provision, or other financial disincentive to the exercise of the
8right to terminate the agreement pursuant to subdivision (e), except
9that the Commission may require the City Council of the City of
10Stockton to pay the Commission for services rendered and any
11other expenditures reasonably made by the Commission in
12anticipation of services to be rendered pursuant to the agreement
13if the City Council of the City of Stockton terminates the
14agreement.

15(e) The City Council of the City of Stockton or the Commission
16may, at any time, by ordinance or resolution, terminate any
17agreement made pursuant to this section for the Commission to
18administer, implement, or enforce a local campaign finance reform
19ordinance or any provision of the ordinance.

20(f) If an agreement is entered into pursuant to this section, the
21Commission shall report to the Legislature regarding the
22performance of that agreement on or before January 1, 2019, and
23shall submit that report in compliance with Section 9795. The
24Commission shall develop the report in consultation with the City
25Council of the City of Stockton. The report shall include, but not
26be limited to, all of the following:

27(1) The status of the agreement.

28(2) The estimated annual cost savings, if any, for the City of
29Stockton.

30(3) A summary of relevant annual performance metrics,
31including measures of use, enforcement, and customer satisfaction.

32(4) Public comments submitted to the Commission or the City
33of Stockton relative to the operation of the agreement.

34(5) Legislative recommendations.

35(g) This section shall remain in effect only until January 1, 2020,
36and as of that date is repealed, unless a later enacted statute, that
37is enacted before January 1, 2020, deletes or extends that date.

38

SEC. 168.  

Section 87207 of the Government Code is amended
39to read:

P215  1

87207.  

(a) If income is required to be reported under this
2article, the statement shall contain, except as provided in
3subdivision (b):

4(1) The name and address of each source of income aggregating
5five hundred dollars ($500) or more in value, or fifty dollars ($50)
6or more in value if the income was a gift, and a general description
7of the business activity, if any, of each source.

8(2) A statement whether the aggregate value of income from
9each source, or in the case of a loan, the highest amount owed to
10each source, was at least five hundred dollars ($500) but did not
11exceed one thousand dollars ($1,000), whether it was in excess of
12one thousand dollars ($1,000) but was not greater than ten thousand
13dollars ($10,000), whether it was greater than ten thousand dollars
14($10,000) but not greater than one hundred thousand dollars
15($100,000), or whether it was greater than one hundred thousand
16dollars ($100,000).

17(3) A description of the consideration, if any, for which the
18income was received.

19(4) In the case of a gift, the amount and the date on which the
20gift was received, and the travel destination for purposes of a gift
21that is a travel payment, advance, or reimbursement.

22(5) In the case of a loan, the annual interest rate, the security,
23if any, given for the loan, and the term of the loan.

24(b) If the filer’s pro rata share of income to a business entity,
25including income to a sole proprietorship, is required to be reported
26under this article, the statement shall contain:

27(1) The name, address, and a general description of the business
28activity of the business entity.

29(2) The name of every person from whom the business entity
30received payments if the filer’s pro rata share of gross receipts
31from that person was equal to or greater than ten thousand dollars
32($10,000) during a calendar year.

33(c) If a payment, including an advance or reimbursement, for
34travel is required to be reported pursuant to this section, it may be
35reported on a separate travel reimbursement schedule which shall
36be included in the filer’s statement of economic interests. A filer
37who chooses not to use the travel schedule shall disclose payments
38for travel as a gift, unless it is clear from all surrounding
39circumstances that the services provided were equal to or greater
P216  1in value than the payments for the travel, in which case the travel
2may be reported as income.

3

SEC. 169.  

Section 89506 of the Government Code is amended
4to read:

5

89506.  

(a) Payments, advances, or reimbursements for travel,
6including actual transportation and related lodging and subsistence
7that is reasonably related to a legislative or governmental purpose,
8or to an issue of state, national, or international public policy, are
9not prohibited or limited by this chapter if either of the following
10applies:

11(1) The travel is in connection with a speech given by the elected
12state officer, local elected officeholder, candidate for elective state
13office or local elective office, an individual specified in Section
1487200, member of a state board or commission, or designated
15employee of a state or local government agency, the lodging and
16subsistence expenses are limited to the day immediately preceding,
17the day of, and the day immediately following the speech, and the
18travel is within the United States.

19(2) The travel is provided by a government, a governmental
20agency, a foreign government, a governmental authority, a bona
21fide public or private educational institution, as defined in Section
22203 of the Revenue and Taxation Code, a nonprofit organization
23that is exempt from taxation under Section 501(c)(3) of the Internal
24Revenue Code, or by a person domiciled outside the United States
25who substantially satisfies the requirements for tax-exempt status
26under Section 501(c)(3) of the Internal Revenue Code.

27(b) Gifts of travel not described in subdivision (a) are subject
28to the limits in Section 89503.

29(c) Subdivision (a) applies only to travel that is reported on the
30recipient’s statement of economic interests.

31(d) For purposes of this section, a gift of travel does not include
32any of the following:

33(1) Travel that is paid for from campaign funds, as permitted
34by Article 4 (commencing with Section 89510), or that is a
35contribution.

36(2) Travel that is provided by the governmental agency of a
37local elected officeholder, an elected state officer, member of a
38state board or commission, an individual specified in Section
3987200, or a designated employee.

P217  1(3) Travel that is reasonably necessary in connection with a
2bona fide business, trade, or profession and that satisfies the criteria
3for federal income tax deduction for business expenses in Sections
4162 and 274 of the Internal Revenue Code, unless the sole or
5predominant activity of the business, trade, or profession is making
6speeches.

7(4) Travel that is excluded from the definition of a gift by any
8other provision of this title.

9(e) This section does not apply to payments, advances, or
10reimbursements for travel and related lodging and subsistence
11permitted or limited by Section 170.9 of the Code of Civil
12Procedure.

13(f) (1) A nonprofit organization that regularly organizes and
14hosts travel for elected officials and that makes payments,
15advances, or reimbursements that total more than ten thousand
16dollars ($10,000) in a calendar year, or that total more than five
17thousand dollars ($5,000) in a calendar year for a single person,
18for travel by an elected state officer or local elected officeholder
19as described in subdivision (a) shall disclose to the Commission
20the names of donors who did both of the following in the preceding
21year:

22(A) Donated one thousand dollars ($1,000) or more to the
23nonprofit organization.

24(B) Accompanied an elected state officer or local elected
25officeholder, either personally or through an agent, employee, or
26representative, for any portion of travel described in subdivision
27(a).

28(2) For purposes of this subdivision, a nonprofit organization
29“regularly organizes and hosts travel for elected officials” if the
30sum of the nonprofit organization’s expenses that relate to any of
31the following types of activities with regard to elected officials
32was greater than one-third of its total expenses reflected on the
33nonprofit organization’s Internal Revenue Service Form 990, or
34the equivalent, filed most recently within the last 12 months:

35(A) Travel.

36(B) Study tours.

37(C) Conferences, conventions, and meetings.

38(3) This subdivision does not preclude a finding that a nonprofit
39organization is acting as an intermediary or agent of the donor. If
P218  1the nonprofit organization is acting as an intermediary or agent of
2the donor, all of the following apply:

3(A) The donor to the nonprofit organization is the source of the
4gift.

5(B) The donor shall be identified as a financial interest under
6Section 87103.

7(C) The gift shall be reported as required by Section 87207.

8(D) The gift shall be subject to the limitations on gifts specified
9in Section 89503.

10(4) For purposes of this subdivision, a nonprofit organization
11includes an organization that is exempt from taxation under Section
12501(c)(3) or Section 501(c)(4) of the Internal Revenue Code.

13

SEC. 170.  

Section 1204.2 of the Health and Safety Code, as
14added by Section 1 of Chapter 704 of the Statutes of 2015, is
15amended to read:

16

1204.2.  

(a) Notwithstanding any other law, including, but not
17limited to, Section 75047 of Article 6 of Chapter 7 of Division 5
18of Title 22 of the California Code of Regulations, and except as
19provided in subdivision (c), a primary care clinic described in
20subdivision (a) of Section 1204 that is licensed pursuant to this
21chapter shall not be required to enter into a written transfer
22agreement with a nearby hospital as a condition of licensure.

23(b) (1) A primary care clinic shall send with each patient at the
24time of transfer, or in the case of an emergency, as promptly as
25possible, copies of all medical records related to the patient’s
26transfer. To the extent practicable and applicable to the patient’s
27transfer, the medical records shall include current medical findings,
28diagnoses, laboratory results, medications provided prior to
29transfer, a brief summary of the course of treatment provided prior
30to transfer, ambulation status, nursing and dietary information,
31name and contact information for the treating physician at the
32clinic, and, as appropriate, pertinent administrative and
33demographic information related to the patient, including name
34and date of birth.

35(2) The requirements in paragraph (1) do not apply if the primary
36care clinic has entered into a written transfer agreement with a
37local hospital that provides for the transfer of medical records.

38(c) A primary care clinic licensed pursuant to subdivision (a)
39of Section 1204 that provides services as an alternative birth center
40shall, as a condition of licensure, be required to maintain a written
P219  1transfer agreement with a local hospital. The transfer agreement
2shall include provisions for communication and transportation to
3meet medical emergencies. Essential personal, health, and medical
4information shall either accompany the patient upon transfer or be
5transmitted immediately by telephone to the receiving facility.
6This section does not modify or supersede the requirements
7imposed on alternative birth centers described in Section 1204.3.

8(d) The State Department of Public Health, no later than July
91, 2016, shall repeal Section 75047 of Article 6 of Chapter 7 of
10Division 5 of Title 22 of the California Code of Regulations.

11(e) This section shall remain in effect only until January 1, 2018,
12and as of that date is repealed, unless a later enacted statute, that
13is enacted before January 1, 2018, deletes or extends that date.

14

SEC. 171.  

Section 1204.2 of the Health and Safety Code, as
15added by Section 2 of Chapter 704 of the Statutes of 2015, is
16amended to read:

17

1204.2.  

(a) Notwithstanding any other law, and except as
18provided in subdivision (c), a primary care clinic described in
19subdivision (a) of Section 1204 that is licensed pursuant to this
20chapter shall not be required to enter into a written transfer
21agreement with a nearby hospital as a condition of licensure.

22(b) (1) A primary care clinic shall send with each patient at the
23time of transfer, or in the case of an emergency, as promptly as
24possible, copies of all medical records related to the patient’s
25transfer. To the extent practicable and applicable to the patient’s
26transfer, the medical records shall include current medical findings,
27diagnoses, laboratory results, medications provided prior to
28transfer, a brief summary of the course of treatment provided prior
29to transfer, ambulation status, nursing and dietary information,
30name and contact information for the treating physician at the
31clinic, and, as appropriate, pertinent administrative and
32demographic information related to the patient, including name
33and date of birth.

34(2) The requirements in paragraph (1) do not apply if the primary
35care clinic has entered into a written transfer agreement with a
36local hospital that provides for the transfer of medical records.

37(c) A primary care clinic licensed pursuant to subdivision (a)
38of Section 1204 that provides services as an alternative birth center
39shall, as a condition of licensure, be required to maintain a written
40transfer agreement with a local hospital. The transfer agreement
P220  1shall include provisions for communication and transportation to
2meet medical emergencies. Essential personal, health, and medical
3information shall either accompany the patient upon transfer or be
4transmitted immediately by telephone to the receiving facility.
5This section does not modify or supersede the requirements
6imposed on alternative birth centers described in Section 1204.3.

7(d) This section shall become operative on January 1, 2018.

8

SEC. 172.  

Section 1262.5 of the Health and Safety Code is
9amended to read:

10

1262.5.  

(a) Each hospital shall have a written discharge
11planning policy and process.

12(b) The policy required by subdivision (a) shall require that
13appropriate arrangements for posthospital care, including, but not
14limited to, care at home, in a skilled nursing or intermediate care
15facility, or from a hospice, are made prior to discharge for those
16patients who are likely to suffer adverse health consequences upon
17discharge if there is no adequate discharge planning. If the hospital
18determines that the patient and family members or interested
19persons need to be counseled to prepare them for posthospital care,
20the hospital shall provide for that counseling.

21(c) As part of the discharge planning process, the hospital shall
22provide each patient who has been admitted to the hospital as an
23inpatient with an opportunity to identify one family caregiver who
24may assist in posthospital care, and shall record this information
25in the patient’s medical chart.

26(1) In the event that the patient is unconscious or otherwise
27incapacitated upon admittance to the hospital, the hospital shall
28provide the patient or patient’s legal guardian with an opportunity
29to designate a caregiver within a specified time period, at the
30discretion of the attending physician, following the patient’s
31recovery of consciousness or capacity. The hospital shall promptly
32document the attempt in the patient’s medical record.

33(2) In the event that the patient or legal guardian declines to
34designate a caregiver pursuant to this section, the hospital shall
35promptly document this declination in the patient’s medical record,
36when appropriate.

37(d) The policy required by subdivision (a) shall require that the
38patient’s designated family caregiver be notified of the patient’s
39discharge or transfer to another facility as soon as possible and, in
40any event, upon issuance of a discharge order by the patient’s
P221  1attending physician. If the hospital is unable to contact the
2designated caregiver, the lack of contact shall not interfere with,
3delay, or otherwise affect the medical care provided to the patient
4or an appropriate discharge of the patient. The hospital shall
5promptly document the attempted notification in the patient’s
6medical record.

7(e) The process required by subdivision (a) shall require that
8the patient and family caregiver be informed of the continuing
9health care requirements following discharge from the hospital.
10The right to information regarding continuing health care
11requirements following discharge shall also apply to the person
12who has legal responsibility to make decisions regarding medical
13care on behalf of the patient, if the patient is unable to make those
14decisions for himself or herself. The hospital shall provide an
15opportunity for the patient and his or her designated family
16caregiver to engage in the discharge planning process, which shall
17include providing information and, when appropriate, instruction
18regarding the posthospital care needs of the patient. This
19information shall include, but is not limited to, education and
20counseling about the patient’s medications, including dosing and
21proper use of medication delivery devices, when applicable. The
22information shall be provided in a culturally competent manner
23and in a language that is comprehensible to the patient and
24caregiver, consistent with the requirements of state and federal
25law, and shall include an opportunity for the caregiver to ask
26questions about the posthospital care needs of the patient.

27(f) (1) A transfer summary shall accompany the patient upon
28transfer to a skilled nursing or intermediate care facility or to the
29distinct part-skilled nursing or intermediate care service unit of
30the hospital. The transfer summary shall include essential
31information relative to the patient’s diagnosis, hospital course,
32pain treatment and management, medications, treatments, dietary
33requirement, rehabilitation potential, known allergies, and treatment
34plan, and shall be signed by the physician.

35(2) A copy of the transfer summary shall be given to the patient
36and the patient’s legal representative, if any, prior to transfer to a
37skilled nursing or intermediate care facility.

38(g) A hospital shall establish and implement a written policy to
39ensure that each patient receives, at the time of discharge,
P222  1 information regarding each medication dispensed, pursuant to
2Section 4074 of the Business and Professions Code.

3(h) A hospital shall provide every patient anticipated to be in
4need of long-term care at the time of discharge with contact
5information for at least one public or nonprofit agency or
6organization dedicated to providing information or referral services
7relating to community-based long-term care options in the patient’s
8county of residence and appropriate to the needs and characteristics
9of the patient. At a minimum, this information shall include contact
10information for the area agency on aging serving the patient’s
11county of residence, local independent living centers, or other
12information appropriate to the needs and characteristics of the
13patient.

14(i) A contract between a general acute care hospital and a health
15care service plan that is issued, amended, renewed, or delivered
16on or after January 1, 2002, shall not contain a provision that
17prohibits or restricts any health care facility’s compliance with the
18requirements of this section.

19(j) Discharge planning policies adopted by a hospital in
20accordance with this section shall ensure that planning is
21appropriate to the condition of the patient being discharged from
22the hospital and to the discharge destination and meets the needs
23and acuity of patients.

24(k) This section does not require a hospital to do either of the
25following:

26(1) Adopt a policy that would delay discharge or transfer of a
27patient.

28(2) Disclose information if the patient has not provided consent
29that meets the standards required by state and federal laws
30governing the privacy and security of protected health information.

31(l) This section does not supersede or modify any privacy and
32information security requirements and protections in federal and
33state law regarding protected health information or personally
34identifiable information, including, but not limited to, the federal
35Health Insurance Portability and Accountability Act of 1996 (42
36U.S.C. Sec. 300gg).

37(m) For the purposes of this section, “family caregiver” means
38a relative, friend, or neighbor who provides assistance related to
39an underlying physical or mental disability but who is unpaid for
40those services.

P223  1

SEC. 173.  

Section 1266 of the Health and Safety Code is
2amended to read:

3

1266.  

(a) The Licensing and Certification Division shall be
4supported entirely by federal funds and special funds by no earlier
5than the beginning of the 2009-10 fiscal year unless otherwise
6specified in statute, or unless funds are specifically appropriated
7from the General Fund in the annual Budget Act or other enacted
8legislation. For the 2007-08 fiscal year, General Fund support
9shall be provided to offset licensing and certification fees in an
10amount of not less than two million seven hundred eighty-two
11thousand dollars ($2,782,000).

12(b) (1) The Licensing and Certification Program fees for the
132006-07 fiscal year shall be as follows:


14

 

Type of Facility

Fee 

General Acute Care Hospitals

$ 134.10

per bed

Acute Psychiatric Hospitals

$ 134.10

per bed

Special Hospitals

$ 134.10

per bed

Chemical Dependency Recovery Hospitals

$ 123.52

per bed

Skilled Nursing Facilities

$ 202.96

per bed

Intermediate Care Facilities

$ 202.96

per bed

Intermediate Care Facilities- Developmentally Disabled

$ 592.29

per bed

Intermediate Care Facilities- Developmentally Disabled-Habilitative

$1,000.00

per facility

Intermediate Care Facilities- Developmentally Disabled-Nursing

$1,000.00

per facility

Home Health Agencies

$2,700.00

per facility

Referral Agencies

$5,537.71

per facility

Adult Day Health Centers

$4,650.02

per facility

Congregate Living Health Facilities

$ 202.96

per bed

Psychology Clinics

$ 600.00

per facility

Primary Clinics- Community and Free

$ 600.00

per facility

Specialty Clinics- Rehab Clinics

 (For profit)

$2,974.43

per facility

 (Nonprofit)

$ 500.00

per facility

Specialty Clinics- Surgical and Chronic

$1,500.00

per facility

Dialysis Clinics

$1,500.00

per facility

Pediatric Day Health/Respite Care

$ 142.43

per bed

Alternative Birthing Centers

$2,437.86

per facility

Hospice

$1,000.00

per provider

Correctional Treatment Centers

$ 590.39

per bed

P224  3

 

4(2) (A) In the first year of licensure for intermediate care
5facility/developmentally disabled-continuous nursing (ICF/DD-CN)
6facilities, the licensure fee for those facilities shall be equivalent
7to the licensure fee for intermediate care facility/developmentally
8disabled-nursing facilities during the same year. Thereafter, the
9licensure fee for ICF/DD-CN facilities shall be established pursuant
10to the same procedures described in this section.

11(B) In the first year of licensure for hospice facilities, the
12licensure fee shall be equivalent to the licensure fee for congregate
13living health facilities during the same year. Thereafter, the
14licensure fee for hospice facilities shall be established pursuant to
15the same procedures described in this section.

16(c) Commencing in the 2015-16 fiscal year, the fees for skilled
17nursing facilities shall be increased so as to generate four hundred
18thousand dollars ($400,000) for the California Department of
19Aging’s Long-Term Care Ombudsman Program for its work related
20to investigating complaints made against skilled nursing facilities
21and increasing visits to those facilities.

22(d) Commencing February 1, 2007, and every February 1
23thereafter, the department shall publish a list of estimated fees
24pursuant to this section. The calculation of estimated fees and the
25publication of the report and list of estimated fees shall not be
26subject to the rulemaking requirements of Chapter 3.5
27(commencing with Section 11340) of Part 1 of Division 3 of Title
282 of the Government Code.

29(e) Notwithstanding Section 10231.5 of the Government Code,
30by February 1 of each year, the department shall prepare the
31following reports and shall make those reports, and the list of
32estimated fees required to be published pursuant to subdivision
33(d), available to the public by submitting them to the Legislature
34and posting them on the department’s Internet Web site:

35(1) A report of all costs for activities of the Licensing and
36Certification Program. At a minimum, this report shall include a
37narrative of all baseline adjustments and their calculations, a
38description of how each category of facility was calculated,
39descriptions of assumptions used in any calculations, and shall
P225  1recommend Licensing and Certification Program fees in accordance
2with the following:

3(A) Projected workload and costs shall be grouped for each fee
4category, including workload costs for facility categories that have
5 been established by statute and for which licensing regulations
6and procedures are under development.

7(B) Cost estimates, and the estimated fees, shall be based on
8the appropriation amounts in the Governor’s proposed budget for
9the next fiscal year, with and without policy adjustments to the fee
10methodology.

11(C) The allocation of program, operational, and administrative
12overhead, and indirect costs to fee categories shall be based on
13generally accepted cost allocation methods. Significant items of
14costs shall be directly charged to fee categories if the expenses can
15be reasonably identified to the fee category that caused them.
16Indirect and overhead costs shall be allocated to all fee categories
17using a generally accepted cost allocation method.

18(D) The amount of federal funds and General Fund moneys to
19be received in the budget year shall be estimated and allocated to
20each fee category based upon an appropriate metric.

21(E) The fee for each category shall be determined by dividing
22the aggregate state share of all costs for the Licensing and
23Certification Program by the appropriate metric for the category
24of licensure. Amounts actually received for new licensure
25applications, including change of ownership applications, and late
26payment penalties, pursuant to Section 1266.5, during each fiscal
27year shall be calculated and 95 percent shall be applied to the
28appropriate fee categories in determining Licensing and
29Certification Program fees for the second fiscal year following
30receipt of those funds. The remaining 5 percent shall be retained
31in the fund as a reserve until appropriated.

32(2) (A) A staffing and systems analysis to ensure efficient and
33effective utilization of fees collected, proper allocation of
34departmental resources to licensing and certification activities,
35survey schedules, complaint investigations, enforcement and appeal
36activities, data collection and dissemination, surveyor training,
37and policy development.

38(B) The analysis under this paragraph shall be made available
39to interested persons and shall include all of the following:

P226  1(i) The number of surveyors and administrative support
2personnel devoted to the licensing and certification of health care
3facilities.

4(ii) The percentage of time devoted to licensing and certification
5activities for the various types of health facilities.

6(iii) The number of facilities receiving full surveys and the
7frequency and number of followup visits.

8(iv) The number and timeliness of complaint investigations,
9including data on the department’s compliance with the
10requirements of paragraphs (3), (4), and (5) of subdivision (a) of
11Section 1420.

12(v) Data on deficiencies and citations issued, and numbers of
13citation review conferences and arbitration hearings.

14(vi) Other applicable activities of the licensing and certification
15division.

16(3) The annual program fee report described in subdivision (d)
17of Section 1416.36.

18(f) The reports required pursuant to subdivision (e) shall be
19submitted in compliance with Section 9795 of the Government
20Code.

21(g) (1) The department shall adjust the list of estimated fees
22published pursuant to subdivision (d) if the annual Budget Act or
23other enacted legislation includes an appropriation that differs
24from those proposed in the Governor’s proposed budget for that
25fiscal year.

26(2) The department shall publish a final fee list, with an
27explanation of any adjustment, by the issuance of an all facilities
28letter, by posting the list on the department’s Internet Web site,
29and by including the final fee list as part of the licensing application
30package, within 14 days of the enactment of the annual Budget
31Act. The adjustment of fees and the publication of the final fee list
32shall not be subject to the rulemaking requirements of Chapter 3.5
33(commencing with Section 11340) of Part 1 of Division 3 of Title
342 of the Government Code.

35(h) (1) Fees shall not be assessed or collected pursuant to this
36section from any state department, authority, bureau, commission,
37or officer, unless federal financial participation would become
38available by doing so and an appropriation is included in the annual
39Budget Act for that state department, authority, bureau,
40commission, or officer for this purpose. Fees shall not be assessed
P227  1or collected pursuant to this section from any clinic that is certified
2only by the federal government and is exempt from licensure under
3Section 1206, unless federal financial participation would become
4available by doing so.

5(2) For the 2006-07 state fiscal year, a fee shall not be assessed
6or collected pursuant to this section from any general acute care
7hospital owned by a health care district with 100 beds or less.

8(i) The Licensing and Certification Program may change annual
9license expiration renewal dates to provide for efficiencies in
10operational processes or to provide for sufficient cashflow to pay
11for expenditures. If an annual license expiration date is changed,
12the renewal fee shall be prorated accordingly. Facilities shall be
13provided with a 60-day notice of any change in their annual license
14renewal date.

15(j) Commencing with the 2018-19 November Program estimate,
16the Licensing and Certification Program shall evaluate the
17feasibility of reducing investigation timelines based on experience
18with implementing paragraphs (3), (4), and (5) of subdivision (a)
19of Section 1420.

20

SEC. 174.  

Section 1279.7 of the Health and Safety Code is
21amended to read:

22

1279.7.  

(a) A health facility, as defined in subdivision (a), (b),
23(c), or (f) of Section 1250, shall implement a facilitywide hand
24hygiene program.

25(b) Commencing January 1, 2017, a health facility, as defined
26in subdivision (a), (b), (c), or (f) of Section 1250, is prohibited
27from using an epidural connector that would fit into a connector
28other than the type it was intended for, unless an emergency or
29urgent situation exists and the prohibition would impair the ability
30to provide health care.

31(c) Commencing January 1, 2016, a health facility, as defined
32in subdivision (a), (b), (c), or (f) of Section 1250, is prohibited
33from using an intravenous connector that would fit into a connector
34other than the type it was intended for, unless an emergency or
35urgent situation exists and the prohibition would impair the ability
36to provide health care.

37(d) Commencing July 1, 2016, a health facility, as defined in
38subdivision (a), (b), (c), or (f) of Section 1250, is prohibited from
39using an enteral feeding connector that would fit into a connector
40other than the type it was intended for, unless an emergency or
P228  1urgent situation exists and the prohibition would impair the ability
2to provide health care.

3(e) The Advanced Medical Technology Association shall, on
4January 1 of each year until the standards are developed, provide
5the Legislature with a report on the progress of the International
6Organization for Standardization in developing new design
7standards for connectors for intravenous, epidural, or enteral
8applications.

9(f) A health facility that is required to develop a patient safety
10plan pursuant to Section 1279.6 shall include in the patient safety
11plan measures to prevent adverse events associated with
12misconnecting intravenous, enteral feeding, and epidural lines.
13This subdivision shall become inoperative as to epidural connectors
14upon the operative date of subdivision (b), and as to intravenous
15connectors upon the operative date of subdivisionbegin delete (c).end deletebegin insert (c),end insert and as
16to enteral feeding connectors upon the operative date of subdivision
17(d).

18

SEC. 175.  

Section 1342.71 of the Health and Safety Code, as
19added by Section 1 of Chapter 619 of the Statutes of 2015, is
20amended to read:

21

1342.71.  

(a) The Legislature hereby finds and declares all of
22the following:

23(1) The federal Patient Protection and Affordable Care Act, its
24implementing regulations and guidance, and related state law
25prohibit discrimination based on a person’s expected length of life,
26present or predicted disability, degree of medical dependency,
27quality of life, or other health conditions, including benefit designs
28that have the effect of discouraging the enrollment of individuals
29with significant health needs.

30(2) The Legislature intends to build on existing state and federal
31law to ensure that health coverage benefit designs do not have an
32unreasonable discriminatory impact on chronically ill individuals,
33and to ensure affordability of outpatient prescription drugs.

34(3) Assignment of all or most prescription medications that treat
35a specific medical condition to the highest cost tiers of a formulary
36may effectively discourage enrollment by chronically ill
37individuals, and may result in lower adherence to a prescription
38drug treatment regimen.

39(b) A nongrandfathered health care service plan contract that is
40offered, amended, or renewed on or after January 1, 2017, shall
P229  1comply with this section. The cost-sharing limits established by
2this section apply only to outpatient prescription drugs covered by
3the contract that constitute essential health benefits, as defined in
4Section 1367.005.

5(c) A health care service plan contract that provides coverage
6for outpatient prescription drugs shall cover medically necessary
7prescription drugs, including nonformulary drugs determined to
8be medically necessary consistent with this chapter.

9(d) (1) Consistent with federal law and guidance, the formulary
10or formularies for outpatient prescription drugs maintained by the
11health care service plan shall not discourage the enrollment of
12individuals with health conditions and shall not reduce the
13generosity of the benefit for enrollees with a particular condition
14in a manner that is not based on a clinical indication or reasonable
15medical management practices. Section 1342.7 and any regulations
16adopted pursuant to that section shall be interpreted in a manner
17that is consistent with this section.

18(2) For combination antiretroviral drug treatments that are
19medically necessary for the treatment of AIDS/HIV, a health care
20service plan contract shall cover a single-tablet drug regimen that
21is as effective as a multitablet regimen unless, consistent with
22clinical guidelines and peer-reviewed scientific and medical
23literature, the multitablet regimen is clinically equally or more
24effective and more likely to result in adherence to a drug regimen.

25(e) (1) With respect to an individual or group health care service
26plan contract subject to Section 1367.006, the copayment,
27coinsurance, or any other form of cost sharing for a covered
28outpatient prescription drug for an individual prescription for a
29supply of up to 30 days shall not exceed two hundred fifty dollars
30($250), except as provided in paragraphs (2) and (3).

31(2) With respect to products with actuarial value at, or equivalent
32to, the bronze level, cost sharing for a covered outpatient
33prescription drug for an individual prescription for a supply of up
34to 30 days shall not exceed five hundred dollars ($500), except as
35provided in paragraph (3).

36(3) For a health care service plan contract that is a “high
37deductible health plan” under the definition set forth in Section
38223(c)(2) of Title 26 of the United States Code, paragraphs (1)
39and (2) of this subdivision shall apply only once an enrollee’s
40deductible has been satisfied for the year.

P230  1(4) For a nongrandfathered individual or small group health
2care service plan contract, the annual deductible for outpatient
3drugs, if any, shall not exceed twice the amount specified in
4paragraph (1) or (2), respectively.

5(5) For purposes of paragraphs (1) and (2), “any other form of
6cost sharing” shall not include a deductible.

7(f) (1) If a health care service plan contract for a
8nongrandfathered individual or small group product maintains a
9drug formulary grouped into tiers that includes a fourth tier, a
10health care service plan contract shall use the following definitions
11for each tier of the drug formulary:

12(A) Tier one shall consist of most generic drugs and low-cost
13preferred brand name drugs.

14(B) Tier two shall consist of nonpreferred generic drugs,
15preferred brand name drugs, and any other drugs recommended
16by the health care service plan’s pharmacy and therapeutics
17committee based on safety, efficacy, and cost.

18(C) Tier three shall consist of nonpreferred brand name drugs
19or drugs that are recommended by the health care service plan’s
20pharmacy and therapeutics committee based on safety, efficacy,
21and cost, or that generally have a preferred and often less costly
22therapeutic alternative at a lower tier.

23(D) Tier four shall consist of drugs that are biologics, drugs that
24the FDA or the manufacturer requires to be distributed through a
25specialty pharmacy, drugs that require the enrollee to have special
26training or clinical monitoring for self-administration, or drugs
27that cost the health plan more than six hundred dollars ($600) net
28of rebates for a one-month supply.

29(2) In placing specific drugs on specific tiers, or choosing to
30place a drug on the formulary, the health care service plan shall
31take into account the other provisions of this section and this
32chapter.

33(3) A health care service plan contract may maintain a drug
34formulary with fewer than four tiers.

35(4) This section shall not be construed to limit a health care
36service plan from placing any drug in a lower tier.

37(g) A health care service plan contract shall ensure that the
38placement of prescription drugs on formulary tiers is based on
39clinically indicated, reasonable medical management practices.

P231  1(h) This section shall not be construed to require a health care
2service plan to impose cost sharing. This section shall not be
3construed to require cost sharing for prescription drugs that state
4or federal law otherwise requires to be provided without cost
5sharing.

6(i) This section does not require or authorize a health care
7service plan that contracts with the State Department of Health
8Care Services to provide services to Medi-Cal beneficiaries to
9provide coverage for prescription drugs that are not required
10pursuant to those programs or contracts, or to limit or exclude any
11prescription drugs that are required by those programs or contracts.

12(j) In the provision of outpatient prescription drug coverage, a
13health care service plan may utilize formulary, prior authorization,
14step therapy, or other reasonable medical management practices
15consistent with this chapter.

16(k) This section does not apply to a health care service plan that
17contracts with the State Department of Health Care Services.

18(l) This section shall remain in effect only until January 1, 2020,
19and as of that date is repealed, unless a later enacted statute, that
20is enacted before January 1, 2020, deletes or extends that date.

21

SEC. 176.  

Section 1358.18 of the Health and Safety Code is
22amended to read:

23

1358.18.  

In the interest of full and fair disclosure, and to ensure
24the availability of necessary consumer information to potential
25subscribers or enrollees not possessing a special knowledge of
26Medicare, health care service plans, or Medicare supplement
27contracts, an issuer shall comply with the following provisions:

28(a) Application forms shall include the following questions
29designed to elicit information as to whether, as of the date of the
30application, the applicant currently has Medicare supplement,
31Medicare Advantage, Medi-Cal coverage, or another health
32insurance policy or certificate or plan contract in force or whether
33a Medicare supplement contract is intended to replace any other
34disability policy or certificate, or plan contract, presently in force.
35A supplementary application or other form to be signed by the
36applicant and solicitor containing those questions and statements
37may be used.


P232  1“(Statements)
2

3(1) You do not need more than one Medicare supplement policy
4or contract.

5(2) If you purchase this contract, you may want to evaluate your
6existing health coverage and decide if you need multiple coverages.

7(3) You may be eligible for benefits under Medi-Cal or Medicaid
8and may not need a Medicare supplement contract.

9(4) If, after purchasing this contract, you become eligible for
10Medi-Cal, the benefits and premiums under your Medicare
11supplement contract can be suspended, if requested, during your
12entitlement to benefits under Medi-Cal or Medicaid for 24 months.
13You must request this suspension within 90 days of becoming
14eligible for Medi-Cal or Medicaid. If you are no longer entitled to
15Medi-Cal or Medicaid, your suspended Medicare supplement
16contract or, if that is no longer available, a substantially equivalent
17contract, will be reinstituted if requested within 90 days of losing
18Medi-Cal or Medicaid eligibility. If the Medicare supplement
19contract provided coverage for outpatient prescription drugs and
20you enrolled in Medicare Part D while your contract was
21suspended, the reinstituted contract will not have outpatient
22prescription drug coverage, but will otherwise be substantially
23equivalent to your coverage before the date of the suspension.

24(5) If you are eligible for, and have enrolled in, a Medicare
25supplement contract by reason of disability and you later become
26covered by an employer or union-based group health plan, the
27benefits and premiums under your Medicare supplement contract
28can be suspended, if requested, while you are covered under the
29employer or union-based group health plan. If you suspend your
30Medicare supplement contract under these circumstances and later
31lose your employer or union-based group health plan, your
32suspended Medicare supplement contract or, if that is no longer
33available, a substantially equivalent contract, will be reinstituted
34if requested within 90 days of losing your employer or union-based
35group health plan. If the Medicare supplement contract provided
36coverage for outpatient prescription drugs and you enrolled in
37Medicare Part D while your contract was suspended, the
38reinstituted contract will not have outpatient prescription drug
39coverage, but will otherwise be substantially equivalent to your
40coverage before the date of the suspension.

P233  1(6) Counseling services are available in this state to provide
2advice concerning your purchase of Medicare supplement coverage
3and concerning medical assistance through the Medi-Cal or
4Medicaid Program, including benefits as a qualified Medicare
5beneficiary (QMB) and a specified low-income Medicare
6beneficiary (SLMB). Information regarding counseling services
7may be obtained from the California Department of Aging.

8
9(Questions)
10

11If you lost or are losing other health insurance coverage and
12received a notice from your prior insurer saying you were eligible
13for guaranteed issue of a Medicare supplement insurance contract
14or that you had certain rights to buy such a contract, you may be
15guaranteed acceptance in one or more of our Medicare supplement
16plans. Please include a copy of the notice from your prior insurer
17with your application. PLEASE ANSWER ALL QUESTIONS.

18[Please mark Yes or No below with an “X.”]

19To the best of your knowledge,

20(1) (a) Did you turn 65 years of age in the last 6 months?

21Yes____ No____

22(b) Did you enroll in Medicare Part B in the last 6 months?

23Yes____ No____

24(c) If yes, what is the effective date? ___________________

25(2) Are you covered for medical assistance through California’s
26Medi-Cal program?

27NOTE TO APPLICANT: If you have a share of cost under the
28Medi-Cal program, please answer NO to this question.

29Yes____ No____

30If yes,

31(a) Will Medi-Cal pay your premiums for this Medicare
32supplement contract?

33Yes____ No____

34(b) Do you receive benefits from Medi-Cal OTHER THAN
35payments toward your Medicare Part B premium?

36Yes____ No____

37(3) (a) If you had coverage from any Medicare plan other than
38original Medicare within the past 63 days (for example, a Medicare
39Advantage plan or a Medicare HMO or PPO), fill in your start and
P234  1end dates below. If you are still covered under this plan, leave
2“END” blank.

3START __/__/__ END __/__/__

4(b) If you are still covered under the Medicare plan, do you
5intend to replace your current coverage with this new Medicare
6supplement contract?

7Yes____ No____

8(c) Was this your first time in this type of Medicare plan?

9Yes____ No____

10(d) Did you drop a Medicare supplement contract to enroll in
11the Medicare plan?

12Yes____ No____

13(4) (a) Do you have another Medicare supplement policy or
14certificate or contract in force?

15Yes____ No____

16(b) If so, with what company, and what plan do you have?
17[optional for Direct Mailers]

18Yes____ No____

19(c) If so, do you intend to replace your current Medicare
20supplement policy or certificate or contract with this contract?

21Yes____ No____

22(5) Have you had coverage under any other health insurance
23within the past 63 days? (For example, an employer, union, or
24individual plan)

25Yes____ No____

26(a) If so, with what companies and what kind of policy?

27________________________________________________

28________________________________________________

29________________________________________________

30________________________________________________

31(b) What are your dates of coverage under the other policy?

32START __/__/__ END __/__/__

33(If you are still covered under the other policy, leave “END”
34blank).”


36(b) Solicitors shall list any other health insurance policies or
37plan contracts they have sold to the applicant as follows:

38(1) List policies and contracts sold that are still in force.

39(2) List policies and contracts sold in the past five years that
40are no longer in force.

P235  1(c) An issuer issuing Medicare supplement contracts without a
2solicitor or solicitor firm (a direct response issuer) shall return to
3the applicant, upon delivery of the contract, a copy of the
4application or supplemental forms, signed by the applicant and
5acknowledged by the issuer.

6(d) Upon determining that a sale will involve replacement of
7Medicare supplement coverage, an issuer, other than a direct
8response issuer, or its agent, shall furnish the applicant, prior to
9issuance for delivery of the Medicare supplement contract, a notice
10regarding replacement of Medicare supplement coverage. One
11copy of the notice signed by the applicant and the agent, except
12where the coverage is sold without an agent, shall be provided to
13the applicant and an additional signed copy shall be retained by
14the issuer. A direct response issuer shall deliver to the applicant
15at the time of the issuance of the contract the notice regarding
16replacement of Medicare supplement coverage.

17(e) The notice required by subdivision (d) for an issuer shall be
18provided in substantially the following form in no less than
1912-point type:

20
21NOTICE TO APPLICANT REGARDING REPLACEMENT
22OF MEDICARE SUPPLEMENT COVERAGE OR MEDICARE
23ADVANTAGE
24

25


26(Company name and address)

27
28SAVE THIS NOTICE! IT MAY BE IMPORTANT TO YOU IN
29THE FUTURE


31According to [your application] [information you have
32furnished], you intend to lapse or otherwise terminate an existing
33Medicare supplement policy or contract or Medicare Advantage
34plan and replace it with a contract to be issued by [Plan Name].
35Your contract to be issued by [Plan Name] will provide 30 days
36within which you may decide without cost whether you desire to
37keep the contract. You should review this new coverage carefully.
38Compare it with all accident and sickness coverage you now have.
39Terminate your present policy or contract only if, after due
P236  1consideration, you find that purchase of this Medicare supplement
2coverage is a wise decision.


4STATEMENT TO APPLICANT BY PLAN, SOLICITOR,
5SOLICITOR FIRM, OR OTHER REPRESENTATIVE:

6(1) I have reviewed your current medical or health coverage.
7To the best of my knowledge, the replacement of coverage involved
8in this transaction does not duplicate coverage or, if applicable,
9Medicare Advantage coverage because you intend to terminate
10your existing Medicare supplement coverage or leave your
11Medicare Advantage plan. The replacement contract is being
12purchased for the following reason (check one):

13__ Additional benefits.

14__ No change in benefits, but lower premiums or charges.

15__ Fewer benefits and lower premiums or charges.

16__ Plan has outpatient prescription drug coverage and applicant
17is enrolled in Medicare Part D.

18__ Disenrollment from a Medicare Advantage plan. Reasons for
19disenrollment:

20__ Other. (please specify) ________.

21(2) If the issuer of the Medicare supplement contract being
22applied for does not impose, or is otherwise prohibited from
23imposing, preexisting condition limitations, please skip to statement
243 below. Health conditions that you may presently have
25(preexisting conditions) may not be immediately or fully covered
26under the new contract. This could result in denial or delay of a
27claim for benefits under the new contract, whereas a similar claim
28might have been payable under your present contract.

29(3) State law provides that your replacement Medicare
30supplement contract may not contain new preexisting conditions,
31waiting periods, elimination periods, or probationary periods. The
32plan will waive any time periods applicable to preexisting
33conditions, waiting periods, elimination periods, or probationary
34periods in the new coverage for similar benefits to the extent that
35time was spent (depleted) under the original contract.

36(4) If you still wish to terminate your present policy or contract
37and replace it with new coverage, be certain to truthfully and
38completely answer any and all questions on the application
39concerning your medical and health history. Failure to include all
40material medical information on an application requesting that
P237  1information may provide a basis for the plan to deny any future
2claims and to refund your prepaid or periodic payment as though
3your contract had never been in force. After the application has
4been completed and before you sign it, review it carefully to be
5certain that all information has been properly recorded.

6(5) Do not cancel your present Medicare supplement coverage
7until you have received your new contract and are sure you want
8to keep it.


9

 

   

(Signature of Solicitor, Solicitor Firm, or Other Representative)
[Typed Name and Address of Plan, Solicitor, or Solicitor Firm]

   

(Applicant’s Signature)

   

(Date)

P237 17

 

18(f) The application form or other consumer information for
19persons eligible for Medicare and used by an issuer shall contain,
20as an attachment, a Medicare supplement buyer’s guide in the form
21approved by the director. The application or other consumer
22information, containing, as an attachment, the buyer’s guide, shall
23be mailed or delivered to each applicant applying for that coverage
24at or before the time of application and, to establish compliance
25with this subdivision, the issuer shall obtain an acknowledgment
26of receipt of the attached buyer’s guide from each applicant. An
27issuer shall not make use of or otherwise disseminate any buyer’s
28guide that does not accurately outline current Medicare supplement
29benefits. An issuer shall not be required to provide more than one
30copy of the buyer’s guide to any applicant.

31(g) An issuer may comply with the requirement of this section
32in the case of group contracts by causing the subscriber (1) to
33disseminate copies of the disclosure form containing as an
34attachment the buyer’s guide to all persons eligible under the group
35contract at the time those persons are offered the Medicare
36supplement plan, and (2) collecting and forwarding to the issuer
37an acknowledgment of receipt of the disclosure form containing,
38as an attachment, the buyer’s guide from each enrollee.

39(h) An issuer shall not require, request, or obtain health
40information as part of the application process for an applicant who
P238  1is eligible for guaranteed issuance of, or open enrollment for, any
2Medicare supplement coverage pursuant to Section 1358.11 or
31358.12, except for purposes of paragraph (1) or (2) of subdivision
4(a) of Section 1358.11 when the applicant is first enrolled in
5Medicare Part B. The application form shall include a clear and
6conspicuous statement that the applicant is not required to provide
7health information during a period where guaranteed issue or open
8enrollment applies, as specified in Section 1358.11 or 1358.12,
9except for purposes of paragraph (1) or (2) of subdivision (a) of
10Section 1358.11 when the applicant is first enrolled in Medicare
11Part B, and shall inform the applicant of those periods of
12guaranteed issuance of Medicare supplement coverage. This
13subdivision does not prohibit an issuer from requiring proof of
14eligibility for a guaranteed issuance of Medicare supplement
15coverage.

16

SEC. 177.  

Section 1367.005 of the Health and Safety Code,
17as added by Section 2 of Chapter 648 of the Statutes of 2015, is
18amended to read:

19

1367.005.  

(a) An individual or small group health care service
20plan contract issued, amended, or renewed on or after January 1,
212017, shall, at a minimum, include coverage for essential health
22benefits pursuant to PPACA and as outlined in this section. For
23purposes of this section, “essential health benefits” means all of
24the following:

25(1) Health benefits within the categories identified in Section
261302(b) of PPACA: ambulatory patient services, emergency
27services, hospitalization, maternity and newborn care, mental health
28and substance use disorder services, including behavioral health
29treatment, prescription drugs, rehabilitative and habilitative services
30and devices, laboratory services, preventive and wellness services
31and chronic disease management, and pediatric services, including
32oral and vision care.

33(2) (A) The health benefits covered by the Kaiser Foundation
34Health Plan Small Group HMO 30 plan (federal health product
35identification number 40513CA035) as this plan was offered during
36the first quarter of 2014, as follows, regardless of whether the
37benefits are specifically referenced in the evidence of coverage or
38plan contract for that plan:

P239  1(i) Medically necessary basic health care services, as defined
2in subdivision (b) of Section 1345 and in Section 1300.67 of Title
328 of the California Code of Regulations.

4(ii) The health benefits mandated to be covered by the plan
5pursuant to statutes enacted before December 31, 2011, as
6described in the following sections: Sections 1367.002, 1367.06,
7and 1367.35 (preventive services for children); Section 1367.25
8(prescription drug coverage for contraceptives); Section 1367.45
9(AIDS vaccine); Section 1367.46 (HIV testing); Section 1367.51
10(diabetes); Section 1367.54 (alpha-fetoprotein testing); Section
111367.6 (breast cancer screening); Section 1367.61 (prosthetics for
12laryngectomy); Section 1367.62 (maternity hospital stay); Section
131367.63 (reconstructive surgery); Section 1367.635 (mastectomies);
14Section 1367.64 (prostate cancer); Section 1367.65
15(mammography); Section 1367.66 (cervical cancer); Section
161367.665 (cancer screening tests); Section 1367.67 (osteoporosis);
17Section 1367.68 (surgical procedures for jaw bones); Section
181367.71 (anesthesia for dental); Section 1367.9 (conditions
19attributable to diethylstilbestrol); Section 1368.2 (hospice care);
20Section 1370.6 (cancer clinical trials); Section 1371.5 (emergency
21response ambulance or ambulance transport services); subdivision
22(b) of Section 1373 (sterilization operations or procedures); Section
231373.4 (inpatient hospital and ambulatory maternity); Section
241374.56 (phenylketonuria); Section 1374.17 (organ transplants for
25HIV); Section 1374.72 (mental health parity); and Section 1374.73
26(autism/behavioral health treatment).

27(iii) Any other benefits mandated to be covered by the plan
28pursuant to statutes enacted before December 31, 2011, as
29described in those statutes.

30(iv) The health benefits covered by the plan that are not
31otherwise required to be covered under this chapter, to the extent
32required pursuant to Sections 1367.18, 1367.21, 1367.215, 1367.22,
331367.24, and 1367.25, and Section 1300.67.24 of Title 28 of the
34California Code of Regulations.

35(v) Any other health benefits covered by the plan that are not
36otherwise required to be covered under this chapter.

37(B) If there are any conflicts or omissions in the plan identified
38in subparagraph (A) as compared with the requirements for health
39benefits under this chapter that were enacted prior to December
P240  131, 2011, the requirements of this chapter shall be controlling,
2except as otherwise specified in this section.

3(C) Notwithstanding subparagraph (B) or any other provision
4of this section, the home health services benefits covered under
5the plan identified in subparagraph (A) shall be deemed to not be
6in conflict with this chapter.

7(D) For purposes of this section, the Paul Wellstone and Pete
8Domenici Mental Health Parity and Addiction Equity Act of 2008
9(Public Law 110-343) shall apply to a contract subject to this
10section. Coverage of mental health and substance use disorder
11services pursuant to this paragraph, along with any scope and
12duration limits imposed on the benefits, shall be in compliance
13with the Paul Wellstone and Pete Domenici Mental Health Parity
14and Addiction Equity Act of 2008 (Public Law 110-343), and all
15rules, regulations, or guidance issued pursuant to Section 2726 of
16the federal Public Health Service Act (42 U.S.C. Sec. 300gg-26).

17(3) With respect to habilitative services, in addition to any
18habilitative services and devices identified in paragraph (2),
19coverage shall also be provided as required by federal rules,
20regulations, and guidance issued pursuant to Section 1302(b) of
21PPACA. Habilitative services and devices shall be covered under
22the same terms and conditions applied to rehabilitative services
23and devices under the plan contract. Limits on habilitative and
24rehabilitative services and devices shall not be combined.

25(4) With respect to pediatric vision care, the same health benefits
26for pediatric vision care covered under the Federal Employees
27Dental and Vision Insurance Program vision plan with the largest
28national enrollment as of the first quarter of 2014. The pediatric
29vision care benefits covered pursuant to this paragraph shall be in
30addition to, and shall not replace, any vision services covered under
31the plan identified in paragraph (2).

32(5) With respect to pediatric oral care, the same health benefits
33for pediatric oral care covered under the dental benefit received
34by children under the Medi-Cal program as of 2014, including the
35provision of medically necessary orthodontic care provided
36pursuant to the federal Children’s Health Insurance Program
37Reauthorization Act of 2009. The pediatric oral care benefits
38covered pursuant to this paragraph shall be in addition to, and shall
39not replace, any dental or orthodontic services covered under the
40plan identified in paragraph (2).

P241  1(b) Treatment limitations imposed on health benefits described
2in this section shall be no greater than the treatment limitations
3imposed by the corresponding plans identified in subdivision (a),
4subject to the requirements set forth in paragraph (2) of subdivision
5(a).

6(c) Except as provided in subdivision (d), nothing in this section
7shall be construed to permit a health care service plan to make
8substitutions for the benefits required to be covered under this
9section, regardless of whether those substitutions are actuarially
10equivalent.

11(d) To the extent permitted under Section 1302 of PPACA and
12any rules, regulations, or guidance issued pursuant to that section,
13and to the extent that substitution would not create an obligation
14for the state to defray costs for any individual, a plan may substitute
15its prescription drug formulary for the formulary provided under
16the plan identified in subdivision (a) as long as the coverage for
17prescription drugs complies with the sections referenced in clauses
18(ii) and (iv) of subparagraph (A) of paragraph (2) of subdivision
19(a) that apply to prescription drugs.

20(e) A health care service plan, or its agent, solicitor, or
21representative, shall not issue, deliver, renew, offer, market,
22represent, or sell any product, contract, or discount arrangement
23as compliant with the essential health benefits requirement in
24federal law, unless it meets all of the requirements of this section.

25(f) This section applies regardless of whether the plan contract
26is offered inside or outside the California Health Benefit Exchange
27created by Section 100500 of the Government Code.

28(g) This section shall not be construed to exempt a plan or a
29plan contract from meeting other applicable requirements of law.

30(h) This section shall not be construed to prohibit a plan contract
31from covering additional benefits, including, but not limited to,
32spiritual care services that are tax deductible under Section 213 of
33the Internal Revenue Code.

34(i) Subdivision (a) does not apply to any of the following:

35(1) A specialized health care service plan contract.

36(2) A Medicare supplement plan.

37(3) A plan contract that qualifies as a grandfathered health plan
38under Section 1251 of PPACA or any rules, regulations, or
39guidance issued pursuant to that section.

P242  1(j) This section shall not be implemented in a manner that
2conflicts with a requirement of PPACA.

3(k) This section shall be implemented only to the extent essential
4health benefits are required pursuant to PPACA.

5(l) An essential health benefit is required to be provided under
6this section only to the extent that federal law does not require the
7state to defray the costs of the benefit.

8(m) This section does not obligate the state to incur costs for
9the coverage of benefits that are not essential health benefits as
10defined in this section.

11(n) A plan is not required to cover, under this section, changes
12to health benefits that are the result of statutes enacted on or after
13December 31, 2011.

14(o) (1) The department may adopt emergency regulations
15 implementing this section. The department may, on a one-time
16basis, readopt any emergency regulation authorized by this section
17that is the same as, or substantially equivalent to, an emergency
18regulation previously adopted under this section.

19(2) The initial adoption of emergency regulations implementing
20this section and the readoption of emergency regulations authorized
21by this subdivision shall be deemed an emergency and necessary
22for the immediate preservation of the public peace, health, safety,
23or general welfare. The initial emergency regulations and the
24readoption of emergency regulations authorized by this section
25shall be submitted to the Office of Administrative Law for filing
26with the Secretary of State and each shall remain in effect for no
27more than 180 days, by which time final regulations may be
28adopted.

29(3) The initial adoption of emergency regulations implementing
30this section made during the 2015-16 Regular Session of the
31Legislature and the readoption of emergency regulations authorized
32by this subdivision shall be deemed an emergency and necessary
33for the immediate preservation of the public peace, health, safety,
34or general welfare. The initial emergency regulations and the
35readoption of emergency regulations authorized by this section
36shall be submitted to the Office of Administrative Law for filing
37with the Secretary of State and each shall remain in effect for no
38more than 180 days, by which time final regulations may be
39adopted.

P243  1(4) The director shall consult with the Insurance Commissioner
2to ensure consistency and uniformity in the development of
3regulations under this subdivision.

4(5) This subdivision shall become inoperative on July 1, 2018.

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

6(1) “Habilitative services” means health care services and
7devices that help a person keep, learn, or improve skills and
8functioning for daily living. Examples include therapy for a child
9who is not walking or talking at the expected age. These services
10may include physical and occupational therapy, speech-language
11pathology, and other services for people with disabilities in a
12variety of inpatient or outpatient settings, or both. Habilitative
13services shall be covered under the same terms and conditions
14applied to rehabilitative services under the plan contract.

15(2) (A) “Health benefits,” unless otherwise required to be
16defined pursuant to federal rules, regulations, or guidance issued
17pursuant to Section 1302(b) of PPACA, means health care items
18or services for the diagnosis, cure, mitigation, treatment, or
19prevention of illness, injury, disease, or a health condition,
20including a behavioral health condition.

21(B) “Health benefits” does not mean any cost-sharing
22requirements such as copayments, coinsurance, or deductibles.

23(3) “PPACA” means the federal Patient Protection and
24Affordable Care Act (Public Law 111-148), as amended by the
25federal Health Care and Education Reconciliation Act of 2010
26(Public Law 111-152), and any rules, regulations, or guidance
27issued thereunder.

28(4) “Small group health care service plan contract” means a
29group health care service plan contract issued to a small employer,
30as defined in Section 1357.500.

31

SEC. 178.  

Section 1367.27 of the Health and Safety Code is
32amended to read:

33

1367.27.  

(a) Commencing July 1, 2016, a health care service
34plan shall publish and maintain a provider directory or directories
35with information on contracting providers that deliver health care
36services to the plan’s enrollees, including those that accept new
37patients. A provider directory shall not list or include information
38on a provider that is not currently under contract with the plan.

39(b) A health care service plan shall provide the directory or
40directories for the specific network offered for each product using
P244  1a consistent method of network and product naming, numbering,
2or other classification method that ensures the public, enrollees,
3potential enrollees, the department, and other state or federal
4agencies can easily identify the networks and plan products in
5 which a provider participates. By July 31, 2017, or 12 months after
6the date provider directory standards are developed under
7subdivision (k), whichever occurs later, a health care service plan
8shall use the naming, numbering, or classification method
9developed by the department pursuant to subdivision (k).

10(c) (1) An online provider directory or directories shall be
11available on the plan’s Internet Web site to the public, potential
12enrollees, enrollees, and providers without any restrictions or
13limitations. The directory or directories shall be accessible without
14any requirement that an individual seeking the directory
15information demonstrate coverage with the plan, indicate interest
16in obtaining coverage with the plan, provide a member
17identification or policy number, provide any other identifying
18information, or create or access an account.

19(2) The online provider directory or directories shall be
20accessible on the plan’s public Internet Web site through an
21identifiable link or tab and in a manner that is accessible and
22searchable by enrollees, potential enrollees, the public, and
23providers. By July 31, 2017, or 12 months after the date provider
24directory standards are developed under subdivision (k), whichever
25occurs later, the plan’s public Internet Web site shall allow provider
26searches by, at a minimum, name, practice address, city, ZIP Code,
27California license number, National Provider Identifier number,
28admitting privileges to an identified hospital, product, tier, provider
29language or languages, provider group, hospital name, facility
30name, or clinic name, as appropriate.

31(d) (1) A health care service plan shall allow enrollees, potential
32enrollees, providers, and members of the public to request a printed
33copy of the provider directory or directories by contacting the plan
34through the plan’s toll-free telephone number, electronically, or
35in writing. A printed copy of the provider directory or directories
36shall include the information required in subdivisions (h) and (i).
37The printed copy of the provider directory or directories shall be
38provided to the requester by mail postmarked no later than five
39business days following the date of the request and may be limited
P245  1to the geographic region in which the requester resides or works
2or intends to reside or work.

3(2) A health care service plan shall update its printed provider
4directory or directories at least quarterly, or more frequently, if
5required by federal law.

6(e) (1) The plan shall update the online provider directory or
7directories, at least weekly, or more frequently, if required by
8federal law, when informed of and upon confirmation by the plan
9of any of the following:

10(A) A contracting provider is no longer accepting new patients
11for that product, or an individual provider within a provider group
12is no longer accepting new patients.

13(B) A provider is no longer under contract for a particular plan
14product.

15(C) A provider’s practice location or other information required
16under subdivision (h) or (i) has changed.

17(D) Upon completion of the investigation described in
18subdivision (o), a change is necessary based on an enrollee
19complaint that a provider was not accepting new patients, was
20otherwise not available, or whose contact information was listed
21incorrectly.

22(E) Any other information that affects the content or accuracy
23of the provider directory or directories.

24(2) Upon confirmation of any of the following, the plan shall
25delete a provider from the directory or directories when:

26(A) A provider has retired or otherwise has ceased to practice.

27(B) A provider or provider group is no longer under contract
28with the plan for any reason.

29(C) The contracting provider group has informed the plan that
30the provider is no longer associated with the provider group and
31is no longer under contract with the plan.

32(f) The provider directory or directories shall include both an
33email address and a telephone number for members of the public
34and providers to notify the plan if the provider directory
35information appears to be inaccurate. This information shall be
36disclosed prominently in the directory or directories and on the
37plan’s Internet Web site.

38(g) The provider directory or directories shall include the
39following disclosures informing enrollees that they are entitled to
40both of the following:

P246  1(1) Language interpreter services, at no cost to the enrollee,
2including how to obtain interpretation services in accordance with
3Section 1367.04.

4(2) Full and equal access to covered services, including enrollees
5with disabilities as required under the federal Americans with
6Disabilities Act of 1990 and Section 504 of the Rehabilitation Act
7of 1973.

8(h) A full service health care service plan and a specialized
9mental health plan shall include all of the following information
10in the provider directory or directories:

11(1) The provider’s name, practice location or locations, and
12contact information.

13(2) Type of practitioner.

14(3) National Provider Identifier number.

15(4) California license number and type of license.

16(5) The area of specialty, including board certification, if any.

17(6) The provider’s office email address, if available.

18(7) The name of each affiliated provider group currently under
19contract with the plan through which the provider sees enrollees.

20(8) A listing for each of the following providers that are under
21contract with the plan:

22(A) For physicians and surgeons, the provider group, and
23admitting privileges, if any, at hospitals contracted with the plan.

24(B) Nurse practitioners, physician assistants, psychologists,
25acupuncturists, optometrists, podiatrists, chiropractors, licensed
26clinical social workers, marriage and family therapists, professional
27clinical counselors, qualified autism service providers, as defined
28in Section 1374.73, nurse midwives, and dentists.

29(C) For federally qualified health centers or primary care clinics,
30the name of the federally qualified health center or clinic.

31(D) For any provider described in subparagraph (A) or (B) who
32is employed by a federally qualified health center or primary care
33clinic, and to the extent their services may be accessed and are
34covered through the contract with the plan, the name of the
35provider, and the name of the federally qualified health center or
36clinic.

37(E) Facilities, including, but not limited to, general acute care
38hospitals, skilled nursing facilities, urgent care clinics, ambulatory
39surgery centers, inpatient hospice, residential care facilities, and
40inpatient rehabilitation facilities.

P247  1(F) Pharmacies, clinical laboratories, imaging centers, and other
2facilities providing contracted health care services.

3(9) The provider directory or directories may note that
4authorization or referral may be required to access some providers.

5(10) Non-English language, if any, spoken by a health care
6 provider or other medical professional as well as non-English
7language spoken by a qualified medical interpreter, in accordance
8with Section 1367.04, if any, on the provider’s staff.

9(11) Identification of providers who no longer accept new
10patients for some or all of the plan’s products.

11(12) The network tier to which the provider is assigned, if the
12provider is not in the lowest tier, as applicable. Nothing in this
13section shall be construed to require the use of network tiers other
14than contract and noncontracting tiers.

15(13) All other information necessary to conduct a search
16pursuant to paragraph (2) of subdivision (c).

17(i) A vision, dental, or other specialized health care service plan,
18except for a specialized mental health plan, shall include all of the
19following information for each provider directory or directories
20used by the plan for its networks:

21(1) The provider’s name, practice location or locations, and
22contact information.

23(2) Type of practitioner.

24(3) National Provider Identifier number.

25(4) California license number and type of license, if applicable.

26(5) The area of specialty, including board certification, or other
27accreditation, if any.

28(6) The provider’s office email address, if available.

29(7) The name of each affiliated provider group or specialty plan
30practice group currently under contract with the plan through which
31the provider sees enrollees.

32(8) The names of each allied health care professional to the
33extent there is a direct contract for those services covered through
34a contract with the plan.

35(9) The non-English language, if any, spoken by a health care
36provider or other medical professional as well as non-English
37language spoken by a qualified medical interpreter, in accordance
38with Section 1367.04, if any, on the provider’s staff.

39(10) Identification of providers who no longer accept new
40patients for some or all of the plan’s products.

P248  1(11) All other applicable information necessary to conduct a
2provider search pursuant to paragraph (2) of subdivision (c).

3(j) (1) The contract between the plan and a provider shall
4include a requirement that the provider inform the plan within five
5business days when either of the following occurs:

6(A) The provider is not accepting new patients.

7(B) If the provider had previously not accepted new patients,
8the provider is currently accepting new patients.

9(2) If a provider who is not accepting new patients is contacted
10by an enrollee or potential enrollee seeking to become a new
11patient, the provider shall direct the enrollee or potential enrollee
12to both the plan for additional assistance in finding a provider and
13to the department to report any inaccuracy with the plan’s directory
14or directories.

15(3) If an enrollee or potential enrollee informs a plan of a
16possible inaccuracy in the provider directory or directories, the
17plan shall promptly investigate, and, if necessary, undertake
18corrective action within 30 business days to ensure the accuracy
19of the directory or directories.

20(k) (1) On or before December 31, 2016, the department shall
21develop uniform provider directory standards to permit consistency
22in accordance with subdivision (b) and paragraph (2) of subdivision
23(c) and development of a multiplan directory by another entity.
24Those standards shall not be subject to the Administrative
25Procedure Act (Chapter 3.5 (commencing with Section 11340) of
26Part 1 of Division 3 of Title 2 of the Government Code), until
27January 1, 2021. No more than two revisions of those standards
28shall be exempt from the Administrative Procedure Act (Chapter
293.5 (commencing with Section 11340) of Part 1 of Division 3 of
30Title 2 of the Government Code) pursuant to this subdivision.

31(2) In developing the standards under this subdivision, the
32department shall seek input from interested parties throughout the
33process of developing the standards and shall hold at least one
34public meeting. The department shall take into consideration any
35requirements for provider directories established by the federal
36Centers for Medicare and Medicaid Services and the State
37Department of Health Care Services.

38(3) By July 31, 2017, or 12 months after the date provider
39directory standards are developed under this subdivision, whichever
P249  1occurs later, a plan shall use the standards developed by the
2department for each product offered by the plan.

3(l) (1) A plan shall take appropriate steps to ensure the accuracy
4of the information concerning each provider listed in the plan’s
5provider directory or directories in accordance with this section,
6and shall, at least annually, review and update the entire provider
7directory or directories for each product offered. Each calendar
8year the plan shall notify all contracted providers described in
9subdivisions (h) and (i) as follows:

10(A) For individual providers who are not affiliated with a
11provider group described in subparagraph (A) or (B) of paragraph
12(8) of subdivision (h) and providers described in subdivision (i),
13the plan shall notify each provider at least once every six months.

14(B) For all other providers described in subdivision (h) who are
15not subject to the requirements of subparagraph (A), the plan shall
16notify its contracted providers to ensure that all of the providers
17are contacted by the plan at least once annually.

18(2) The notification shall include all of the following:

19(A) The information the plan has in its directory or directories
20regarding the provider or provider group, including a list of
21networks and plan products that include the contracted provider
22or provider group.

23(B) A statement that the failure to respond to the notification
24may result in a delay of payment or reimbursement of a claim
25pursuant to subdivision (p).

26(C) Instructions on how the provider or provider group can
27update the information in the provider directory or directories using
28the online interface developed pursuant to subdivision (m).

29(3) The plan shall require an affirmative response from the
30provider or provider group acknowledging that the notification
31was received. The provider or provider group shall confirm that
32the information in the provider directory or directories is current
33and accurate or update the information required to be in the
34directory or directories pursuant to this section, including whether
35or not the provider or provider group is accepting new patients for
36each plan product.

37(4) If the plan does not receive an affirmative response and
38confirmation from the provider that the information is current and
39accurate or, as an alternative, updates any information required to
40be in the directory or directories pursuant to this section, within
P250  130 business days, the plan shall take no more than 15 business
2days to verify whether the provider’s information is correct or
3requires updates. The plan shall document the receipt and outcome
4of each attempt to verify the information. If the plan is unable to
5verify whether the provider’s information is correct or requires
6updates, the plan shall notify the provider 10 business days in
7 advance of removal that the provider will be removed from the
8provider directory or directories. The provider shall be removed
9from the provider directory or directories at the next required
10update of the provider directory or directories after the
1110-business-day notice period. A provider shall not be removed
12from the provider directory or directories if he or she responds
13before the end of the 10-business-day notice period.

14(5) General acute care hospitals shall be exempt from the
15requirements in paragraphs (3) and (4).

16(m) A plan shall establish policies and procedures with regard
17to the regular updating of its provider directory or directories,
18including the weekly, quarterly, and annual updates required
19pursuant to this section, or more frequently, if required by federal
20law or guidance.

21(1) The policies and procedures described under this subdivision
22shall be submitted by a plan annually to the department for
23approval and in a format described by the department pursuant to
24Section 1367.035.

25(2) Every health care service plan shall ensure processes are in
26place to allow providers to promptly verify or submit changes to
27the information required to be in the directory or directories
28pursuant to this section. Those processes shall, at a minimum,
29include an online interface for providers to submit verification or
30changes electronically and shall generate an acknowledgment of
31receipt from the health care service plan. Providers shall verify or
32submit changes to information required to be in the directory or
33directories pursuant to this section using the process required by
34the health care service plan.

35(3) The plan shall establish and maintain a process for enrollees,
36potential enrollees, other providers, and the public to identify and
37report possible inaccurate, incomplete, or misleading information
38currently listed in the plan’s provider directory or directories. This
39process shall, at a minimum, include a telephone number and a
40dedicated email address at which the plan will accept these reports,
P251  1as well as a hyperlink on the plan’s provider directory Internet
2Web site linking to a form where the information can be reported
3directly to the plan through its Internet Web site.

4(n) (1) This section does not prohibit a plan from requiring its
5provider groups or contracting specialized health care service plans
6to provide information to the plan that is required by the plan to
7satisfy the requirements of this section for each of the providers
8that contract with the provider group or contracting specialized
9health care service plan. This responsibility shall be specifically
10documented in a written contract between the plan and the provider
11group or contracting specialized health care service plan.

12(2) If a plan requires its contracting provider groups or
13contracting specialized health care service plans to provide the
14plan with information described in paragraph (1), the plan shall
15continue to retain responsibility for ensuring that the requirements
16of this section are satisfied.

17(3) A provider group may terminate a contract with a provider
18for a pattern or repeated failure of the provider to update the
19information required to be in the directory or directories pursuant
20to this section.

21(4) A provider group is not subject to the payment delay
22described in subdivision (p) if all of the following occurs:

23(A) A provider does not respond to the provider group’s attempt
24to verify the provider’s information. As used in this paragraph,
25“verify” means to contact the provider in writing, electronically,
26and by telephone to confirm whether the provider’s information
27is correct or requires updates.

28(B) The provider group documents its efforts to verify the
29provider’s information.

30(C) The provider group reports to the plan that the provider
31should be deleted from the provider group in the plan directory or
32directories.

33(5) Section 1375.7, known as the Health Care Providers’ Bill
34of Rights, applies to any material change to a provider contract
35pursuant to this section.

36(o) (1) Whenever a health care service plan receives a report
37indicating that information listed in its provider directory or
38directories is inaccurate, the plan shall promptly investigate the
39reported inaccuracy and, no later than 30 business days following
40receipt of the report, either verify the accuracy of the information
P252  1or update the information in its provider directory or directories,
2as applicable.

3(2) When investigating a report regarding its provider directory
4or directories, the plan shall, at a minimum, do the following:

5(A) Contact the affected provider no later than five business
6days following receipt of the report.

7(B) Document the receipt and outcome of each report. The
8documentation shall include the provider’s name, location, and a
9description of the plan’s investigation, the outcome of the
10investigation, and any changes or updates made to its provider
11directory or directories.

12(C) If changes to a plan’s provider directory or directories are
13required as a result of the plan’s investigation, the changes to the
14online provider directory or directories shall be made no later than
15the next scheduled weekly update, or the update immediately
16following that update, or sooner if required by federal law or
17regulations. For printed provider directories, the change shall be
18made no later than the next required update, or sooner if required
19by federal law or regulations.

20(p) (1) Notwithstanding Sections 1371 and 1371.35, a plan may
21delay payment or reimbursement owed to a provider or provider
22group as specified in subparagraph (A) or (B), if the provider or
23provider group fails to respond to the plan’s attempts to verify the
24provider’s or provider group’s information as required under
25subdivision (l). The plan shall not delay payment unless it has
26 attempted to verify the provider’s or provider group’s information.
27As used in this subdivision, “verify” means to contact the provider
28or provider group in writing, electronically, and by telephone to
29confirm whether the provider’s or provider group’s information
30is correct or requires updates. A plan may seek to delay payment
31or reimbursement owed to a provider or provider group only after
32the 10-business day notice period described in paragraph (4) of
33subdivision (l) has lapsed.

34(A) For a provider or provider group that receives compensation
35on a capitated or prepaid basis, the plan may delay no more than
3650 percent of the next scheduled capitation payment for up to one
37calendar month.

38(B) For any claims payment made to a provider or provider
39group, the plan may delay the claims payment for up to one
40calendar month beginning on the first day of the following month.

P253  1(2) A plan shall notify the provider or provider group 10
2business days before it seeks to delay payment or reimbursement
3to a provider or provider group pursuant to this subdivision. If the
4plan delays a payment or reimbursement pursuant to this
5subdivision, the plan shall reimburse the full amount of any
6payment or reimbursement subject to delay to the provider or
7provider group according to either of the following timelines, as
8applicable:

9(A) No later than three business days following the date on
10which the plan receives the information required to be submitted
11by the provider or provider group pursuant to subdivision (l).

12(B) At the end of the one-calendar month delay described in
13subparagraph (A) or (B) of paragraph (1), as applicable, if the
14provider or provider group fails to provide the information required
15to be submitted to the plan pursuant to subdivision (l).

16(3) A plan may terminate