BILL NUMBER: AB 1656	AMENDED
	BILL TEXT

	AMENDED IN CONFERENCE   AUGUST 10, 1998
	AMENDED IN SENATE   JUNE 3, 1998
	AMENDED IN ASSEMBLY   MAY 28, 1998
	AMENDED IN ASSEMBLY   MAY 26, 1998

INTRODUCED BY   Assembly Member Ducheny

                        JANUARY 12, 1998

   An act  making appropriations  for the support of the
government of the State of California and for several public purposes
in accordance with the provisions of Section 12 of Article IV of the
Constitution of the State of California, and declaring the
urgency thereof, to take effect immediately  .



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1656, as amended, Ducheny.  1998-99 Budget.
   This bill would  contain proposed   make
 appropriations for  display purposes for 
support of state government for the 1998-99 fiscal year.
    This bill would declare that it is to take effect immediately
as an urgency statute. 
   Vote:   majority   2/3  .
Appropriation:   no   yes  .  Fiscal
committee:  yes.  State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:





   SECTION 1.00.  This act shall be known and may be cited as the
"Budget Act of 1998."

   SEC. 1.50.  (a) In accordance with Section 13338 of the
Government Code, as added by Chapter 1284, Statutes of 1978, and
as amended by Chapter 1286, Statutes of 1984, it is the intent of the

Legislature that this act utilize a coding scheme compatible with the

Governor's Budget and the records of the State Controller, and
provide
for the appropriation of federal funds received by the state and
deposited in the State Treasury.

   (b) Essentially, the format and style are as follows:

   (1) Appropriation item numbers have a code which is common to
all the state's fiscal systems. The meaning of this common coded item

number is as follows:

   2720--Organization Code (this code represents the California
Highway Patrol)

   001--Reference Code (first appropriation for a particular fund for

support of each department)

   0044--Fund Code (Motor Vehicle Account, State Transportation
Fund)

   (2) Appropriation items are organized in organization code order
as reflected in the Governor's Budget.

   (3) All the appropriation items, reappropriation items, and
reversion items, if any, for each department or entity are adjacent
to
one another.

   (4) Federal funds received by the state and deposited in the State

Treasury are appropriated in separate items.

   (c) The Department of Finance may authorize revisions to the
codes used in this act in order to provide compatibility between the
codes used in this act and those used in the Governor's Budget and in

the records of the State Controller.

   (d) Notwithstanding any other provision of this act, the
Department of Finance may revise the schedule of any appropriation
made in this act where the revision is of a technical nature and is
consistent with legislative intent. These revisions may include, but
shall not be limited to, the substitution of category for program or
program for category limitations, the proper categorization of
allocated
administration costs and cost recoveries, the distribution of any
unallocated amounts within an appropriation and the adjustment of
schedules to facilitate departmental accounting operations, including

the elimination of categories providing for amounts payable from
other
items or other appropriations and the distribution of unscheduled
amounts to programs or categories. These revisions shall include a
certification that the revisions comply with the intent and
limitation of
expenditures as appropriated by the Legislature.

   (e) Notwithstanding any other provision of this act, when the
Department of Finance, pursuant to subdivision (d), approves the
schedule or revision of any appropriation relating to the elimination
of
amounts payable, the language authorizing the transfer shall also be
eliminated.

   SEC. 2.00.  (a) The following sums of money and those
appropriated by any other sections of this act, or so much thereof as

may be necessary unless otherwise provided herein, are hereby
appropriated for the use and support of the State of California for
the
1998-99 fiscal year beginning July 1, 1998, and ending June 30, 1999.

All of these appropriations, unless otherwise provided herein, shall
be
paid out of the General Fund in the State Treasury.

   (b) Appropriations and reappropriations for capital outlay, unless

otherwise provided herein, shall be available for expenditure during
the 1998-99, 1999-2000, and 2000-2001 fiscal years, except that
appropriations and reappropriations for studies, preliminary plans,
working drawings, or minor capital outlay, except as provided herein,

shall be available for expenditure only during the 1998-99 fiscal
year.
In addition, the balance of every appropriation or reappropriation
made
in this act that contains funding for construction that has not been
allocated, through fund transfer or approval to proceed to bid, by
the
Department of Finance on or before June 30, 1999, except as provided
herein, shall revert as of that date to the fund from which the
appropriation was made.

   (c) Whenever by constitutional or statutory provision the revenues

or receipts of any institution, department, board, bureau,
commission,
officer, employee, or other agency, or any moneys in any special fund

created by law therefor, are to be used for salaries, support or any
proper purpose, expenditures shall be made therefrom for any such
purpose only to the extent of the amount therein appropriated, unless

otherwise stated herein, or authorized pursuant to Section 11006 of
the
Government Code.

   (d) Appropriations for purposes not otherwise provided for herein
that have been heretofore made by any existing constitutional or
statutory provision shall continue to be governed thereby.

LEGISLATIVE/JUDICIAL/EXECUTIVE

Legislative

0110-001-0001--For support of Senate  . . . 67,254,000

Schedule:

(a) 101001-Salaries of Senators  . . . 4,300,000

(b) 317295-Mileage  . . . 5,000

(c) 317292-Expenses  . . . 1,104,000

(d) 500004-Operating Expenses  . . . 61,445,000

(e) 317296-Automotive Expenses  . . . 400,000

Provisions:

1. The funds appropriated in Schedule (d) are for operating expenses
of the Senate, including personal services for officers, clerks, and
all
other employees, and legislative committees thereof composed in
whole or in part of Members of the Senate, and for support of joint
expenses of the Legislature, to be transferred by the Controller to
the
Senate Operating Fund.

2. The funds appropriated in Schedule (e) are for operating expenses
of the Senate relating to the purchase, maintenance, repair,
insurance,
and other costs of operating automobiles for the use of Members of
the
Senate, to be transferred by the Controller to the Senate Operating
Fund.

3. The funds appropriated in Schedules (a), (b), (c), and (e) may be
transferred to or from the Senate Operating Fund.

0120-011-0001--For support of Assembly  . . . 91,362,000

Schedule:

(a) 101001-Salaries of Assembly Members  . . . 8,328,000

(b) 317295-Mileage  . . . 8,000

(c) 317292-Expenses  . . . 2,190,000

(d) 500004-Operating Expenses  . . . 80,223,000

(e) 317296-Automotive Expenses  . . . 613,000

Provisions:

1. The funds appropriated in Schedule (d) are for operating expenses
of the Assembly, including personal services for officers, clerks,
and
all other employees, and legislative committees thereof composed in
whole or in part of Members of the Assembly, and for support of joint

expenses of the Legislature, to be transferred by the Controller to
the
Assembly Operating Fund.

2. The funds appropriated in Schedule (e) are for operating expenses
of the Assembly relating to the lease, maintenance, repair,
insurance,
and other costs of operating automobiles for the use of Members of
the
Assembly, to be transferred by the Controller to the Assembly
Operating Fund.

3. The funds appropriated by Schedules (a), (b), (c), and (e) may be
transferred to or from the Assembly Operating Fund.

0130-021-0001--For support of Office of the Legislative Analyst  . .
.
0

Schedule:

(a) Expenses of the Office of the Legislative Analyst  . . .
4,368,000

(b) Transferred from Item 0110-001-0001  . . . -2,184,000

(c) Transferred from Item 0120-011-0001  . . . -2,184,000

Provisions:

1. The funds appropriated in Schedule (a) are for the expenses of the

Office of the Legislative Analyst and of the Joint Legislative Budget

Committee for any charges, expenses, or claims either may incur,
available without regard to fiscal years, to be paid  on
certification of
the Chairperson of the Joint Legislative Budget Committee.

2. Funds identified in Schedules (b) and (c) may be transferred from
the Senate Operating Fund, by the Senate Committee on Rules, and
the Assembly Operating Fund, by the Assembly Committee on Rules.

0160-001-0001--For support of Legislative Counsel Bureau  . . .
58,757,000

Schedule:

(a) Support  . . . 58,888,000

(b) Reimbursements  . . . -131,000

                              Judicial

0250-001-0001--For support of Judiciary  . . .  210,328,000

 210,178,000 

Schedule:

(a) 10-Supreme Court  . . . 27,846,000

(b) 20-Courts of Appeal  . . . 133,298,000

(c) 30-Judicial Council  . . .  48,469,000 
 48,319,000 

(d) 50-Habeas Resource Center  . . . 4,534,000

(e) Reimbursements  . . . -2,318,000

(f) Amount payable from the Motor Vehicle Account, State
Transportation Fund (Item 0250-001-0044)  . . . -127,000

(g) Amount payable from the Court Interpreters Account (Item
0250-001-0327)  . . . -256,000

(h) Amount payable from the Federal Trust Fund (Item
0250-001-0890)  . . . -1,118,000

Provisions:

1. Notwithstanding Section 26.00 of this act, the funds appropriated

or scheduled in this item may be allocated or reallocated among
categories by order of the Judicial Council.

2. Of the funds appropriated by this item, $200,000 is available for
reimbursement to the Attorney General or for hiring outside counsel
for employment litigation costs arising from any cases involving the
conduct of trial court judges or courts of appeal personnel in which
the
Judicial Council is named as a defendant. Any funds not used for this

purpose shall revert to the General Fund.

3. The funds appropriated by this item include an augmentation of

$1,400,000    $1,391,000   for the court-appointed
counsel program of the California Supreme Court. It is the intent of
the
Legislature that these funds are only used for the court-appointed
counsel program. Any unused funds from this augmentation shall
revert to the General Fund.

 4. Notwithstanding any other provision of law, up to $5,000,000

appropriated by this item may be transferred to Item 0250-101-0001
by the Controller at the request of the Administrative Office of the
Courts, to cover any short-term cash flow issues that occur. Any
funds
transferred shall be repaid to this item from Item 0250-101-0001 by
May 1, 1999. The Judicial Council shall notify the Department of
Finance and the Joint Legislative Budget Committee when any transfer
is made pursuant to this provision, and upon repayment of the
transfer.


0250-001-0044--For support of Judiciary, for payment to Item
0250-001-0001, payable from the Motor Vehicle Account, State
Transportation Fund  . . . 127,000

0250-001-0327--For support of Judiciary, for payment to Item
0250-001-0001, payable from the Court Interpreters Account  . . .
256,000

0250-001-0890--For support of Judiciary, for payment to Item
0250-001-0001, payable from the Federal Trust Fund  . . . 1,118,000

0250-101-0001--For local assistance, Judiciary  . . . 
4,475,000

 1,475,000 

Schedule:

(a) 30.10-Child Support Commissioner Program (AB 1058)  . . .
38,700,000 

(b) 30.20-California Drug Court Project  . . . 4,858,000 


(b) 30.20-California Drug Project  . . . 1,858,000 

(c) 30.30-Child Access and Visitation Grant Program  . . . 791,000

(d) 30.40-Family Assessment, Intervention, and Resources Grant
Program  . . . 150,000

(e) 30.50-Court Improvement Grant Program  . . . 700,000

(f) 30.60-Court Appointed Special Advocate (CASA) Program  . . .
1,350,000

(g) 30.70-Trial Court Coordination Assistance Grants  . . . 125,000

(h) Reimbursements  . . . -41,349,000

(i) Amount payable from Federal Trust Fund (Item 0250-101-0890)
. . . -850,000 

Provisions:

1. Notwithstanding any other provision of law, up to $5,000,000
appropriated by Item 0250-001-0001 may be transferred to Item
0250-101-0001 by the Controller at the request of the Administrative
Office of the Courts, to cover any short-term cash flow issues that
occur. Any funds transferred shall be repaid from this item to Item
0250-001-0001 by May 1, 1999. The Judicial Council shall notify the
Department of Finance and the Joint Legislative Budget Committee
when any transfer is made pursuant to this provision, and upon
repayment of the transfer. 

0250-101-0890--For local assistance, Judiciary, for transfer to Item
0250-101-0001, payable from the Federal Trust Fund  . . . 850,000

0280-001-0001--For support of the Commission on Judicial
Performance, Program 10  . . . 3,101,000

0390-001-0001--For support, for transfer by the Controller to the
Judges' Retirement Fund, for Supreme Court and Appellate Court
Justices  . . . 1,250,000

Provisions:

1. Upon order of the Department of Finance, the Controller shall
transfer such funds as are necessary between Item 0390-001-0001 and
Item 0390-101-0001.

0390-101-0001--For local assistance, for transfer by the State
Controller to the Judges' Retirement Fund for Superior Court and
Municipal Court Judges  . . . 67,119,000

Provisions:

1. Upon order of the Department of Finance, the Controller shall
transfer such funds as are necessary between Item 0390-001-0001 and
Item 0390-101-0001.

0450-101-0932--For local assistance, State Trial Court Funding,
payable from Trial Court Trust Fund  . . .  1,681,686,000

 1,676,286,000 

Schedule:

(a) 10-Support for operation of the Trial Courts  . . . 
1,522,980,000 
 1,517,580,000 

(b) 25-Compensation of Superior Court Judges  . . . 92,927,000

(c) 35-Assigned Judges  . . . 19,368,000

(d) 45-Court Interpreters  . . . 46,411,000

Provisions:

1. Notwithstanding Section 26.00 of this act, the funds appropriated
or scheduled in this item may be allocated or reallocated among
categories by the Judicial Council.

2. The amount appropriated in Schedule (c) shall be made available
for
all judicial assignments. Schedule (c) expenditures for necessary
chamber staff may not exceed the staffing level that is necessary to
support the equivalent of three judicial officers sitting on
assignments
at the appellate court level.

3. The funds appropriated in Schedule (b) shall be made available for

the payment of workers' compensation claims for trial court judges.

4. The funds appropriated in Schedule (d) shall be for payments for
services of contractual court interpreters, certified court
interpreters
employed by the courts, and the following court interpreter
coordinators: one each in counties of the 1st through the 15th
classes,
0.5 each in counties of the 16th through the 31st classes, and 0.25
each
in counties of the 32nd through 58th classes. Courts in counties with

a population of 500,000 or less are encouraged, but not required, to
coordinate interpreter services on a regional basis. For the purposes
of
this provision, "court interpreter coordinators" may be full- or
part-time
court employees, or those contracted by the court to perform these
services.

  The Judicial Council shall set statewide or regional rates and
policies
for payment of court interpreters,  not to be less than $220 a
day
and   not to exceed the rate paid to interpreters in the federal
court
system. The Judicial Council shall adopt appropriate rules and
procedures for the administration of these funds. The Judicial
Council
shall report to the Legislature and Director of the Department of
Finance quarterly regarding expenditures from this schedule and
projections for annual expenditures for the use of interpreters in
the
courts and the use and administration of these funds.

5. The Judicial Council shall report to the Department of Finance,
the
Joint Legislative Budget Committee, and the fiscal committees of each

house of the Legislature by October 1, 1998, on the anticipated cost
increases resulting from contractual salary adjustments of court
employees for the 1998-99 fiscal year.

0450-111-0001--For local assistance, State Trial Court Funding, for
transfer to the Trial Court Trust  Fund  . . .  637,107,000

 632,860,766  

0450-112-0001--For local assistance, State Trial Court Funding, for
transfer to the Judicial Administration Efficiency and Modernization
Fund  . . . 50,000,000

0450-112-0556--For local assistance, State Trial Court Funding,
payable from the Judicial Administration Efficiency and
Modernization Fund  . . . 50,000,000 

                              Executive

0500-001-0001--For support of Governor and of Governor's office  .
. . 4,861,000

Schedule:

(a) Support  . . . 4,786,000

(b) Governor's Residence (Support)  . . . 35,000

(c) Special Contingent Expenses  . . . 40,000

Provisions:

1. The funds appropriated in Schedules (b) and (c) of this item are
exempt from the provisions of Sections 925.6, 12410, and 13320 of
the Government Code.

0505-001-0001--For support of the Department of Information
Technology  . . . 7,304,000

Schedule:

(a) Support  . . . 8,054,000

(b) Reimbursements  . . . -750,000

Provisions:

1. In addition to the funds otherwise appropriated by this item, the

sum of $437,000 is hereby appropriated from the General Fund for the
support of the Department of Information Technology for the 1998-99
fiscal year. The appropriation made by this provision is not
available
unless and until the Department of Information Technology drafts or
produces final policies establishing (1) when a department should
hire
an independent oversight vendor, (2) the level of experience project
managers should have, (3) how to determine whether a procurement
should be cost- or needs-based, (4) when a department should require
a letter of credit or performance bond from the vendor, (5) the
appropriate size of a project, (6) when acquiring intellectual
property
rights is appropriate, (7) when a risk assessment model should be
conducted on a project, (8) when a risk mitigation plan needs to be
developed, (9) summary information that  should be contained in the
beginning of funding documents, and (10) notification to the
Legislature of information technology projects which are being
conducted under delegated authority. Final policies shall be
distributed
to departments prior to June 30, 1999.

2. The Department of Information Technology shall provide the
Legislature, by July 15, 1998, and quarterly thereafter, a report as
to
the status of the state's Year 2000 computer application conversion
effort. The report, to be submitted to the fiscal committees in each
house of the Legislature and the Joint Legislative Budget Committee,
shall indicate the progress and level of compliance by the state with
the
California 2000 Program Guide of the department, and specifically
shall include (1) identification of any project determined to be at
risk
of not completing necessary remediation efforts before the failure
date
of the system, (2) revised total cost estimates, including redirected

resources for each mission critical system, and (3) identification by

system name of each essential but nonmission critical system the
department is planning to remediate. For those systems determined to
be at risk of failing to be remediated before the failure date of the

system, the department shall identify the factors that create the
risk
and the steps that are being taken to mitigate the risk. 

3. All information technology acquisitions may be based on the
proposal that provides the most value-effective solution to the state'
s
business needs as determined by the evaluation criteria contained in
the solicitation document. Value-effective evaluation criteria for
information technology acquisitions shall include, but not be limited

to, criteria contained in Section 12100.7 of the Public Contract
Code,
as appropriate.

4. (a) State agencies may use a performance-based solicitation method

for an informational technology acquisition when a state agency has
defined a business problem, project scope, and desired business
results, but does not have sufficient internal resources to develop
high
quality, timely, and innovative business solutions.

  The procedures and guidelines governing state agency use of
performance-based solicitations shall include, but not be limited to,
the
following:

(1) Definition of the state agency's business problem, project scope,

and desired business results.

(2) Formation of an evaluation and selection team that includes a
senior management representative from the state agency.

(3) Solicitation of statements of interest, enabling potential
suppliers
to demonstrate qualifications and capabilities to the state agency
for
use in establishing a list of appropriately qualified suppliers.

(4) Working sessions or interviews with qualified suppliers for
purposes of facilitating a mutual understanding of the state agency's

business needs, and aiding in development of value-effective,
conceptual solutions.

(5) Solicitation of written bids from qualified suppliers, including
a
framework for pricing.

(6) Evaluation of bids, and selection of a business partner, based
upon
value-effective criteria established and set forth in the
solicitation by
the evaluation and selection team.

(7) Joint negotiation of final terms and conditions for the contract,

including a final pricing framework for the proposed solution except
that, if mutually acceptable final terms and conditions, including
pricing, cannot be agreed upon, the state agency shall have the right
to
suspend the negotiations with the selected business partner and enter

into negotiations to develop a contract with the next most qualified
bidder.

(8) Effective state agency management of both the project and the
contract throughout its entire life cycle.

(b) A performance-based contract shall be designed to establish a
strategic business alliance that shall continue through the phases of
the
project identified in the solicitation including, but not limited to,

detailed requirements, solution design, construction, implementation,

and operation, if applicable.

(c) The contract shall include (1)
the pricing framework, which shall reflect fair value to all parties

based upon mutually agreed upon expectations, risks, and rewards, and

(2)
provisions for termination of the strategic business alliance if
problems develop that make it inadvisable to continue, or where a
business case is no longer viable or valid. The price paid by the
state
agency shall be reasonably related to the benefits obtained from the
solution, and may be based on realization of the benefits obtained,
results, or performance measures. 

0510-001-0001--For support of Secretary of State and Consumer
Services  . . . 732,000

Schedule:

(a) Support  . . . 1,224,000

(b) Reimbursements  . . . -492,000

0520-001-0044--For support of Secretary for Business, Transportation
and Housing, payable from the Motor Vehicle Account, State
Transportation Fund  . . . 906,000

Schedule:

(a) 10-Administration of Business, Transportation and Housing
Agency  . . . 2,016,000

(b) 30-Agency Audits Office  . . . 301,000

(c) Reimbursements  . . . -1,411,000

0530-001-0001--For support of Secretary for Health and Welfare  . .
. 1,298,000

Schedule:

(a) 10-Secretary for Health and Welfare  . . . 2,267,000

(b) Reimbursements  . . . -969,000

0540-001-0001--For support of Secretary for Resources  . . . 

16,386,000 
 11,386,000 

Schedule:

(a) 10-Administration of Resources Agency  . . .  18,244,000

 13,244,000 

(b) Reimbursements  . . . -472,000

(c) Amount payable from the California Environmental License Plate
Fund (Item 0540-001-0140)  . . . -799,000

(d) Amount payable from the Environmental Enhancement and
Mitigation Demonstration Program Fund (Item 0540-001-0183)  . . .
-117,000

(e) Amount payable from the Federal Trust Fund (Item
0540-001-0890)  . . . -470,000

 Provisions:

1. Of the amount appropriated in Schedule (a) of this Item,
$10,000,000 may be allocated only by the Resources Agency for
expenditure by the Resources Agency for urban river parkway
projects, consistent with Section 78682.2 of the Public Resources
Code, for projects along the following rivers: San Joaquin
($2,000,000), American ($1,000,000), land acquisition along the Otay
River ($3,000,000), Guadalupe ($1,000,000), and Los Angeles
($3,000,000). Funds received by other state agencies from this item
for
acquisition or restoration projects are exempt from the reporting
requirements of Section 28.5 of this act. 

0540-001-0140--For support of Secretary for Resources, for payment
to Item 0540-001-0001, payable from the California Environmental
License Plate Fund  . . . 799,000

0540-001-0183--For support of Secretary for Resources, for payment
to Item 0540-001-0001, payable from the Environmental Enhancement
and Mitigation Demonstration Program Fund  . . . 117,000

0540-001-0890--For support of Secretary for Resources, for payment
to Item 0540-001-0001, payable from the Federal Trust Fund  . . .
470,000

0540-101-0001--For local assistance, Secretary for Re-sources  . . .

3,598,000

Provisions:

1. The funds appropriated in this item are for the Coastal County and

City Offshore Energy Assistance Program as required by Chapter 977,
Statutes of 1996.

0550-001-0001--For support of the Secretary for the Youth and Adult
Correctional Agency  . . .  1,856,000 
 8,183,000 

Schedule:

(a) 10-Secretary for the Youth and Adult Correctional Agency  . . .
 2,113,000 
 8,440,000 

(b) Reimbursements  . . . -257,000

0550-005-0001--For support of the Secretary for the Youth and Adult
Correctional Agency  . . .  3,922,000 
 461,000 

Schedule:

(a) 15-Commission on Correctional Peace Officers' Standards and
Training  . . .  3,922,000 
 461,000 

Provisions:

1. Of the funds appropriated in this item, $3,200,000 shall be used
exclusively to contract with Walden House, Inc., for development and

implementation of a mandatory training program for the Department
of Corrections and the Department of the Youth Authority to educate
custody staff, inmates, and wards about cultural competence and
racial
and ethnic diversity. The training shall meet standards developed by
CPOST prior to implementation. In addition, of the funds appropriated

in this item, $261,000 shall be used to establish three positions to
administer the contract, and to coordinate with the contractor and
the
Department of Corrections and the Department of the Youth Authority
on the development and implementation of the program. Upon the
successful implementation and evaluation of the program, staff
dedicated to the project may be used for other purposes or programs.


 0555-001-0044--For support of Secretary for Environmental
Protection, payable from the Motor Vehicle Account, State
Transportation Fund  . . . 615,000

Schedule:

(a) 10-Environmental Protection Programs  . . . 2,536,000

(b) Reimbursements  . . . -1,646,000

(c) Amount payable from the California Used Oil Recycling Fund
(Item 0555-001-0100)  . . . -23,000

(d) Amount payable from the Integrated Waste Management Account,
Integrated Waste Management Fund (Item 0555-001-0387)  . . .
-252,000

Provisions:

1. Notwithstanding subdivisions (b) and (c) of Section 48653 of the
Public Resources Code, funds appropriated in this item shall be
available for purposes of administration.

0555-001-0100--For support of Secretary for Environmental
Protection, for payment to Item 0555-001-0044, payable from the
California Used Oil Recycling Fund  . . . 23,000

0555-001-0387--For support of Secretary for Environmental
Protection, for payment to Item 0555-001-0044, payable from the
Integrated Waste Management Account, Integrated Waste
Management Fund  . . . 252,000 

0558-001-0001--For support of Secretary of Child Development and
Education  . . .  1,406,000 
 1,362,000 

Schedule:

(a) Secretary for Child Development and Education  . . . 
1,406,000 
 1,362,000 

Provisions:

1. The amount appropriated by this item is intended for support of
the
Child Development and Education Agency. The appropriation is an
estimate of the funding needs from January 1, 1999, to June 30, 1999,

inclusive. Legislation establishing the agency is currently pending
and,
if enacted, would be effective January 1, 1999. In the event that
legislation creating the agency is not effective on or before January
1,
1999, the unexpended balance of the funds appropriated by this item
shall be available for expenditure pursuant to Item 0650-011-0001, as

authorized by the Director of Finance.

0558-011-0890--For support of Secretary of Child Development and
Education, payable from Federal Trust Fund, for support of the
California Commission on Improving Life Through Service  . . .
720,000

Provisions:

1. The amount appropriated by this item is intended for support of
the
Commission on Improving Life Through Service. The appropriation
is an estimate of the funding needs from January 1, 1999, to June 30,

1999, inclusive. Legislation establishing the agency is currently
pending and, if enacted, would be effective January 1, 1999. In the
event that legislation creating the agency is not effective on or
before
January 1, 1999 or the funds are needed prior to January 1, 1999, the

Director of Finance is authorized to transfer expenditure authority
from this item to Item 0650-011-0890.

0558-101-0890--For local assistance, Secretary of Child Development
and Education, payable from Federal Trust Fund, for the California
Commission on Improving Life Through Service  . . . 16,325,000

Provisions:

1. The amount appropriated by this item is intended for local
assistance for the Commission on Improving Life Through Service.
The appropriation is an estimate of the funding needs from January 1,

1999, to June 30, 1999. Legislation establishing the agency is
currently
pending and, if enacted, would be effective January 1, 1999. In the
event that legislation creating the agency is not effective on or
before
January 1, 1999 or the funds are needed prior to January 1, 1999, the

Director of Finance is authorized to transfer expenditure authority
from this item to Item 0650-101-0890.

0650-001-0001--For support of Office of Planning and Research  . . .

3,017,000

Schedule:

(a) 11-State Planning and Policy Development  . . . 3,903,000

(b) Reimbursements  . . . -363,000

(c) Amount payable from the Property Acquisition Law Account (Item
0650-001-0002)  . . . -468,000

(d) Amount payable from the Federal Trust Fund (Item 0650-0010890)
. . . -55,000

0650-001-0002--For support of Office of Planning and Research, for
payment to Item 0650-001-0001, payable from the Property
Acquisition Law Account  . . . 468,000

0650-001-0890--For support of Office of Planning and Research, for
payment to Item 0650-001-0001, payable from the Federal Trust Fund
. . . 55,000

0650-011-0001--For support of Office of Planning and Research  . . .

 1,143,000 
 1,099,000 

Schedule:

(a) Secretary for Child Development and Education  . . . 
1,153,000 
 1,109,000 

(b) Reimbursements  . . . -10,000

Provisions:

1. The funds appropriated by this item are intended for support of
the
Child Development and Education Agency (CDEA). The
appropriation is an estimate of the funding needs from July 1, 1998,
to December 31, 1998, inclusive. Legislation establishing the agency
is currently pending and, if enacted, would be effective January 1,
1999. After December 31, 1998, and upon the determination that all
obligations of the CDEA in the Office of Planning and Research have
been met, the unexpended balance of the funds appropriated by this
item shall be available for expenditure pursuant to Item
0558-001-0001, as authorized by the Director of Finance.

0650-011-0890--For support of Office of Planning and Research,
payable from the Federal Trust Fund, for support of the California
Commission on Improving Life Through Service  . . . 722,000

Provisions:

1. The funds appropriated by this item are intended for support of
the
Child Development and Education Agency (CDEA) for the
Commission on Improving Life Through Service (CCILTS). The
appropriation is an estimate of the funding needs from July 1, 1998,
to December 31, 1998, inclusive. Legislation establishing the agency
is currently pending and, if enacted, would be effective January 1,
1999. After December 31, 1998, and upon the determination that all
obligations of the CCILTS in the Office of Planning and Research
have been met, the unexpended balance of the funds appropriated by
this item shall be available for expenditure pursuant to Item
0558-011-0890, as authorized by the Director of Finance.

0650-101-0890--For local assistance, Office of Planning and Research,

payable from the Federal Trust Fund, for the California Commission
on Improving Life Through Service  . . . 14,875,000

Provisions:

1. The funds appropriated by this item are for local assistance
allocations approved by the Commission on Improving Life Through
Service (CCILTS) within the Child Development and Education
Agency (CDEA). The appropriation is an estimate of the funding
needs for this purpose from July 1, 1998, to December 31, 1998.
Legislation establishing the CDEA is currently pending and, if
enacted, would be effective January 1, 1999. After December 31,
1998, and upon the determination by the Director of Finance that all
obligations of the CCILTS in the Office of Planning and Research
have been met, the unexpended balance of the funds appropriated by
this item shall be available for expenditure pursuant to Item
0558-101-0890, as authorized by the director.

0650-111-0001--For local assistance, Office of Planning and Research
for the Secretary of Child Development and Education (Proposition
98), for the Academic Volunteer and Mentor Service Program  . . .
10,000,000

Provisions:

1. Legislation to establish the Office of Child Development and
Education is currently pending and, if enacted, would be effective
January 1, 1999. After December 31, 1998, and upon determination
that all obligations of the Secretary of Child Development and
Education in the Office of Planning and Research have been met, the
unexpended balance of the funds appropriated in this item shall be
available for expenditure by the Office of Child Development and
Education as authorized by the Director of Finance.

0690-001-0001--For support of Office of Emergency Services  . . .
30,445,000

Schedule:

(a) 15-Mutual Aid Response  . . . 14,983,000

(b) 35-Plans and Preparedness  . . . 17,215,000

(c) 45-Disaster Assistance  . . . 21,590,000

(d) 55.01-Administration and Executive  . . . 4,692,000

(e) 55.02-Distributed Administration and Executive  . . . -4,692,000

(f) Reimbursements  . . . -3,958,000

(g) Amount payable from the Unified Program Account (Item
0690-001-0028)  . . . -456,000

(h) Amount payable from the Nuclear Planning Assessment Special
Account (Item 0690-001-0029)  . . . -821,000

(i) Amount payable from the Federal Trust Fund (Item 0690-0010890)
. . . -18,108,000

Provisions:

1. Funds appropriated by this item may be reduced by the Director of
Finance, after giving notice to the Chairperson of the Joint
Legislative
Budget Committee, by the amount of federal funds made  available for
the purposes of this item in excess of the federal funds scheduled in

Item 0690-001-0890.

2. The Office of Emergency Services shall charge tuition for all
training offered through the California Specialized Training
Institute.

3. Upon the approval by the Department of Finance, the Controller
shall transfer such funds as are necessary between this item and Item

0690-101-0890.

0690-001-0028--For support of Office of Emergency Services, for
payment to Item 0690-001-0001, payable from the Unified Program
Account  . . . 456,000

0690-001-0029--For support of Office of Emergency Services, for
payment to Item 0690-001-0001, payable from the Nuclear Planning
Assessment Special Account  . . . 821,000

0690-001-0890--For support of Office of Emergency Services, for
payment to Item 0690-001-0001, payable from the Federal Trust Fund
. . . 18,108,000

Provisions:

1. Any funds that may become available, in addition to the funds
appropriated by this item, for disaster response and recovery may be
allocated by the Department of Finance subject to the conditions of
Section 28.00 of this act, except that, notwithstanding subdivision
(d)
of that section, the allocations may be made 30 days or less after
notification of the Legislature.

2. Notwithstanding any other provision of law, the funds appropriated

by this item may be expended without regard to the fiscal year in
which the application for reimbursement was submitted to the Federal
Emergency Management Agency.

0690-101-0029--For local assistance, Office of Emergency Services,
Program 35--Plans and Preparedness, payable from the Nuclear
Planning Assessment Special Account  . . . 1,934,000

0690-101-0890--For local assistance, Office of Emergency Services,
payable from the Federal  Trust Fund  . . . 254,950,000

Schedule:

(a) 15-Mutual Aid Response  . . . 150,000

(b) 35-Plans and Preparedness  . . . 4,800,000

(c) 45-Disaster Assistance  . . . 250,000,000

Provisions:

1. Any federal funds that may become available in addition to the
funds appropriated by this item for Program 45--Disaster Assistance
are exempt from Section 28.00 of this act.

0690-102-0372--For local assistance, Office of Emergency Services,
payable from Disaster Relief Fund, notwithstanding Section 16419 of
the Government Code, for disaster relief costs related to Loma Prieta

earthquake.  . . . 10,000,000

Provisions:

1. The funds appropriated in this item are for the state's share of
response and recovery costs for the Loma Prieta earthquake and shall
be available for allocation by the Department of Finance.

0690-112-0001--For local assistance, Office of Emergency Services,
for allocation by Department of Finance for disaster recovery costs
.
. . 65,000,000

Provisions:

1. The funds appropriated in this item are for the state's share of
response and recovery costs for disasters.

0690-295-0001--For local assistance, Office of Emergency Services,
for reimbursement, in accordance with Section 6 of Article XIIIB of
the California Constitution or Section 17561 of the Government Code,
of the costs of any new program or increased level of service of an
existing program mandated by statute or executive order, State
Controller  . . . 0

Schedule:

(1) 98.01.103.280-Deaf Teletype Equipment (Ch. 1032, Stats.  1980)
. . . 0

Provisions:

1. Pursuant to Section 17581 of the Government Code, the mandate
identified in the appropriation schedule of this item with an
appropriation of $0 and included in the language of this provision is

specifically identified by the Legislature for suspension during the
1998-99 fiscal year:

(a) Deaf Teletype Equipment (Ch. 1032, Stats. 1980).

 0690-301-0001--For capital outlay, Office of Emergency
Services
. . . 25,330,000

Schedule:

(1) 80.10.001-Sacramento OES Headquarters and State Operations
Center--Working Drawings  . . . 25,330,000 

 0690-301-0660--For capital outlay, Office of Emergency Services

. . . 25,330,000

Schedule:

(1) 80.10.001-Sacramento OES Headquarters and State Operations
Center--Working drawings and construction  . . . 25,330,000

Provisions:

1. The State Public Works Board may issue lease-revenue bonds,
notes, or bond anticipation notes pursuant to Chapter 5 (commencing
with Section 15830) of Part 10b of Division 3 of Title 2 of the
Government Code to finance the construction of the project authorized

by this item.

2. The State Public Works Board and the Office of Emergency
Services may obtain interim financing for the project costs
authorized
in this item from any appropriate source including, but not limited
to,
the Pooled Money Investment Account pursuant to Sections 16312 and
16313 of the Government Code.

3. The maximum amount of bonds, notes, or bond anticipation notes
to be sold shall not exceed the cost of construction and any
additional
amounts necessary to pay interim and permanent financing costs. 


0720-001-0001--For painting of the Governor's portrait, for
expenditure by the Department of General Services  . . . 25,000

0730-001-0001--For expenses of the Governor-elect and outgoing
Governor, for expenditure by the Department of Finance  . . . 650,000


Schedule:

Transition Funding:

(a) Governor-elect expenses as authorized in Section 12015 of the
Government Code  . . . 550,000

(b) Outgoing Governor's expenses as authorized in Section 12015.5 of
the Government Code  . . . 100,000

Provisions:

1. Funds scheduled in Category (a) shall be available from November
4, 1998, to January 15, 1999. Expenditure of these funds shall be
subject to approval by the Governor-elect.

0750-001-0001--For support of Office of the Lieutenant Governor  .
. . 1,366,000

0820-001-0001--For support of Department of Justice  . . . 
226,438,000 
 226,588,000 

Schedule:

(1) 11.01-Directorate-Administration  . . . 47,593,000

(2) 11.02-Distributed Directorate-Administration  . . . -47,593,000

(3) 25-Executive Programs  . . .  5,646,000 
 5,796,000 

(4) 30-Civil Law  . . . 93,703,000

(5) 40-Criminal Law  . . . 71,813,000

(6) 45-Public Rights  . . . 31,726,000

(7) 50-Law Enforcement  . . . 113,091,000

(8) 60-Criminal Justice Information Services  . . . 122,476,000

(9) 65-Gambling Control  . . . 3,742,000

(10) Reimbursements  . . . -106,576,000

(11) Amount payable from the Attorney General Antitrust Account,
General Fund (Item 0820-001-0012)  . . . -1,050,000

(12) Amount payable from Hazardous Waste Control Account,
General Fund (Item 0820-001-0014)  . . . -1,663,000

(13) Amount payable from Firearms Safety Training Fund Special
Account (Item 0820-001-0015)  . . . -716,000

(14) Amount payable from the Fingerprint Fees Account, General
Fund (Item 0820-001-0017)  . . . -32,146,000

(15) Amount payable from the Motor Vehicle Account, State
Transportation Fund (Item 0820-001-0044)  . . . -18,288,000

(16) Amount payable from the Department of Justice Sexual Habitual
Offender Fund, General Fund (Item 0820-001-0142)  . . . -1,556,000

(17) Amount payable from the Travel Seller Fund (Item
0820-0010158)  . . . -396,000

(18) Amount payable from the Restitution Fund (Item 0820-001-0214)
. . . -62,000

(19) Amount payable from the Sexual Predator Public Information
Account (Item 0820-001-0256)  . . . -53,000

(20) Amount payable from the False Claims Act Fund (Item
0820-001-0378)  . . . -2,911,000

(21) Amount payable from the Dealers' Record of Sale Special
Account, General Fund (Item 0820-001-0460)  . . . -7,161,000

(22) Amount payable from the Toxic Substances Control Account
(Item 0820-001-0557)  . . . -1,757,000

(23) Amount payable from the DOJ Child Abuse Fund (Item
0820-001-0566)  . . . -334,000

(24) Amount payable from the Gambling Control Fund (Item
0820-001-0567)  . . . -4,182,000

(25) Amount payable from the Gambling Control Fines and Penalties
Account (Item 0820-001-0569)  . . . -1,000

(26) Amount payable from the Federal Trust Fund (Item
0820-0010890)  . . . -35,155,000

(27) Amount payable from the Federal Asset Forfeiture Account,
Special Deposit Fund (Item 0820-001-0942)  . . . -1,305,000

(28) Amount payable from the State Asset Forfeiture Account, Special
Deposit Fund (Item 0820-011-0942)  . . . -447,000

Provisions:

1. The Attorney General shall submit to the Legislature, the
Department of Finance, and the Governor the quarterly and annual
reports that he or she submits to the federal government on the
activities of the Medi-Cal Fraud Unit.

2. Notwithstanding any other provision of law, the Department of
Justice may purchase or lease vehicles of any type or class that, in
the
judgment of the Attorney General or his or her designee, are
necessary
to the performance of the investigatory  and enforcement
responsibilities of the Department of Justice, from the funds
appropriated for that purpose in this item.

3. Notwithstanding Section 28.50 of this act, the Attorney General
may augment the reimbursement authority provided by this item by up
to an aggregate of 10 percent above the amount approved in this act
for the Civil Law Division and the Public Rights Division in cases
where the legal representation needs of client agencies are secured
by
an interagency agreement or letter of commitment and the
corresponding expenditure authority has not been provided in this
item. The Attorney General shall notify the chairpersons of the
budget
committees, the Joint Legislative Budget Committee and the
Department of Finance within 15 days after the augmentation is made
as to the amount and justification of the augmentation, and the
program that has been augmented.

4. Of the amount appropriated in this item, $2,112,000 is for the
legal
defense costs of the state in cases arising from claims of property
losses due to floods. Any funds not used for this purpose shall
revert
to the General Fund.

5. Of the funds appropriated by this item, $596,000 shall be
available
only for necessary expenditures related to defending the state in the

Casmalia superfund lawsuit. Any of these funds not expended for this
purpose shall revert to the General Fund.

6. Of the funds appropriated in this item, $266,000 is available for
the
Northern California pilot program for investigating inactive homicide

cases. Any funds not used for this purpose shall revert to the
General
Fund.

 7. Of the funds appropriated by this item, $150,000 shall
support
the California Youth Violence Prevention Authority pursuant to
legislation enacted during the 1997-98 Regular Session. 

0820-001-0012--For support of Department of Justice, for payment to
Item 0820-001-0001, payable from the Attorney General Antitrust
Account, General Fund  . . . 1,050,000

0820-001-0014--For support of Department of Justice, for payment to
Item 0820-001-0001, payable from the Hazardous Waste Control
Account, General  Fund  . . . 1,663,000

0820-001-0015--For support of Department of Justice, for payment to
Item 0820-001-0001, payable from the Firearms Safety Training Fund
Special Account  . . . 716,000

0820-001-0017--For support of Department of Justice, for payment to
Item 0820-001-0001, payable from the Fingerprint Fees Account,
General Fund, pursuant to subdivision (e) of Section 11105 of the
Penal Code  . . . 32,146,000

0820-001-0044--For support of Department of Justice, for payment to
Item 0820-001-0001, payable from the Motor Vehicle Account, State
Transportation Fund  . . . 18,288,000

0820-001-0142--For support of Department of Justice, for payment to
Item 0820-001-0001, payable from the Department of Justice Sexual
Habitual Offender Fund, General Fund  . . . 1,556,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

0820-001-0158--For support of Department of Justice, for payment to
Item 0820-001-0001, payable from the Travel Seller Fund  . . .
396,000

0820-001-0214--For support of Department of Justice, for payment to
Item 0820-001-0001, payable from Restitution Fund  . . . 62,000

0820-001-0256--For support of Department of Justice,
for payment to Item 0820-001-0001, payable from the Sexual Predator
Public Information Account  . . . 53,000

0820-001-0378--For support of Department of Justice, for payment to
Item 0820-001-0001, payable from the False Claims Act Fund  . . .
2,911,000

0820-001-0460--For support of Department of Justice, for payment to
Item 0820-001-0001, payable from the Dealers' Record of Sale Special
Account, General Fund  . . . 7,161,000

Provisions:

1. Dealers' Record of Sale fees collected pursuant to the state law
for
the registration of assault weapons shall not exceed $20 per
registrant.

0820-001-0557--For support of Department of Justice, for payment to
Item 0820-001-0001, payable from the Toxics Substances Control
Account  . . . 1,757,000

0820-001-0566--For support of Department of Justice, for payment to
Item 0820-001-0001, payable from DOJ Child Abuse Fund  . . .
334,000

0820-001-0567--For support of Department of Justice, for payment to
Item 0820-001-0001, payable from Gambling Control Fund  . . .
4,182,000

0820-001-0569--For support of Department of Justice, for payment to
Item 0820-001-0001, payable from Gambling Control Fines and
Penalties Account  . . . 1,000

0820-001-0890--For support of Department of Justice, for payment to
Item 0820-001-0001, payable from the Federal Trust Fund  . . .
35,155,000

0820-001-0942--For support of Department of Justice, for payment to
Item 0820-001-0001, payable from the Federal Asset Forfeiture
Account, Special Deposit Fund  . . . 1,305,000

0820-011-0942--For support of Department of Justice, for payment to
Item 0820-001-0001, payable from the State Asset Forfeiture Account,
Special Deposit Fund  . . . 447,000

0820-101-0001--For local assistance, Department of Justice.  . . .

6,270,000 
 8,520,000 

Schedule:

(a) 25-Executive Programs  . . . 2,915,000

(b) 40-Criminal Law  . . . 3,355,000

 (c) 50-Law enforcement  . . . 900,000

(d) 60-Criminal Justice Information Services  . . . 1,350,000 

Provisions:

1. The funds appropriated in Schedule (a) are for allocation to
community-based violence prevention activities related to the
California Gang, Crime and Violence Prevention Partnership Program,
pursuant to Chapter 885, Statutes of 1997.

2. The funds appropriated in Schedule (b) are for allocation to
district
attorneys for vertical prosecution activities related to
implementation
of the Battered Women Protection Act of 1994, pursuant to Chapter
140, Statutes of 1994. 

3. The funds appropriated in Schedule (c) are for allocation to the
Sexual Assault Felony Enforcement Task Force. 

0820-101-0214--For local assistance, Department of Justice, payable
from the Restitution Fund  . . .  4,938,000 
 2,938,000 

Schedule:

(a) 50-Law Enforcement  . . .  4,938,000 
 2,938,000 

Provisions:

1. The funds appropriated in Schedule (a) are for allocation in
support
of the California Witness Protection Program, pursuant to Chapter
507  ,    of the   Statutes of 1997. Any
funds not
expended for this specific purpose shall revert to the Restitution
Fund. 

2. The Bureau of State Audits shall audit each claim submitted for
payment under the California Witness Protection Program. The bureau
shall ensure that all criteria for program eligibility are met and
shall
report to the Legislature by January 1, 1999, and annually
thereafter,
on the results of those audits. The bureau also shall recommend
changes to criteria for the program in order to ensure accountability
as
part of its annual report to the Legislature.  

2. The Department of Justice shall establish, in consultation with
the
Bureau of State Audits, appropriate policies and procedures for the
submittal and review of claims to the California Witness Protection
Program. Of the amount appropriated in this item and the amount
appropriated in Item 0820-001-0214, the department may expend up
to $150,000 for the purposes of this provision and the administration

of the California Witness Protection Program.

3. The Bureau of State Audits shall audit the Department of Justice's

claims review process for the California Witness Protection Program
to ensure that all criteria for program eligibility are met and shall

report to the Legislature by January 1, 1999, and annually
thereafter,
              on the results of its audits. The bureau shall also
recommend changes
to criteria for the program to ensure accountability as part of its
annual
report to the Legislature. 

0820-101-0460--For local assistance, Department of Justice payable
from Dealers' Record of Sale Special Account, General Fund  . . .
85,000

Schedule:

(a) 50-Law Enforcement  . . . 85,000

0820-295-0001--For local assistance, Department of Justice, for
reimbursement, in accordance with the provisions of Section 6 of
Article XIII B of the California Constitution or of Section 17561 of
the
Government Code, of the costs of any new program or  increased level
of service of an existing program mandated by statute or executive
order, State Controller  . . . 10,959,000

Schedule:

(1) 98.01.139.976-Custody of Minors (Ch. 1399, Stats. 1976)  . . .
9,683,000

(2) 98.01.033.790-Stolen Vehicle Notification (Ch.337, Stats. 1990)
. . . 334,000

(3) 98.01.110.592-Misdemeanors: Booking/Fingerprinting (Ch.1105,
Stats. 1992)  . . . 942,000

Provisions:

1. Allocation of funds provided in this item to the appropriate local

entities shall be made by the Controller in accordance with the
provisions of each statute or executive order that mandates the
reimbursement of the costs, and shall be audited to verify the actual

amount of the mandated costs in accordance with subdivision (d) of
Section 17561 of the Government Code. Audit adjustments to prior
year claims may be paid from this item. Funds appropriated by this
item may be used to provide reimbursement pursuant to Article 5
(commencing with Section 17615) of Chapter 4 of Part 7 of Division
4 of Title 2 of the Government Code.

0820-301-0001--For capital outlay, Department of Justice  . . .

6,037,000 
 5,166,000 

Schedule:

(0.5) 85.50.080.980-Riverside Re  placement
Laboratory--Acquisition    placement Laboratory
--Acquisition    . . . 314,000

(1) 85.60.010-Santa Barbara Replacement Laboratory--Acquisition
and Preliminary Plans  . . . 646,000

(2) 85.60.020-Santa Rosa Replacement Laboratory--Acquisition and
Preliminary Plans  . . . 542,000

(3) 85.60.030-Fresno Replacement  Laboratory--Acquisition and

Preliminary    Laboratory--Preliminary   Plans  . .
. 
1,268,000 
 397,000 

(4) 85.60.040-Eureka Replacement Laboratory--Acquisition  . . .
1,500,000

(5) 85.60.050-Hawkins Data Center--Replace/Upgrade Computer
Room Emergency Power Configu

ration--Preliminary Plans, Working Drawings, Construction and
Equipment  . . . 1,767,000 

Provisions:

1. For the project in Schedule (3) in this item, the department
shall be
allowed to construct a one-story laboratory on the California State
University, Fresno, campus. 

0820-402--In the event the bonds authorized for the projects
scheduled
in Item 0820-301-0660 Budget Act of 1997 are not sold, the
Department of Justice shall commit a sufficient portion of its
support
appropriation provided for in this Budget Act to repay any interim
financing costs including but not limited to loans from the Pooled
Money Investment Account. It is the intent of the Legislature that
this
commitment shall be included in future Budget Acts until outstanding
interim financing costs are repaid either through the sale of bonds
or
from an appropriation.

0820-490--Reappropriation, Department of Justice.

Notwithstanding any other provision of law, the  unexpended

balance of funds provided in the following citation are
reappropriated
on the effective date of this act for the purposes and subject to the

limitations, unless otherwise specified, provided for in the
appropriations, and shall be available for expenditure until June 30,

1999.

0001-General Fund

(1) The  unexpended   balance of the $350,000
appropriated
from Item 0820-001-0001, Budget Act of 1997, for the necessary
expenditures pursuant to the trial of State ex rel State Lands
Commission v. City of Los Angeles in accordance with Provision 4 of
that item.

0820-491--Reappropriation, Department of Justice. The 
unencumbered   balances of the appropriations provided for
in the
following citations are reappropriated for the purposes and subject
to
the limitations, unless otherwise specified, provided for in those
appropriations. The amount available for reappropriation  in this

item, for construction of the Riverside Crime Laboratory,  
shall
be equal to the original appropriation as reduced by the amount
expended in Schedule (.5) of Item 0820-301-0001:

0660--Public Building Construction Fund

Item 0820-301-0660, Budget Act of 1997

(1) 85.50.070-Central Valley Crime Laboratory--Construction

(2) 85.50.080-Riverside Crime Laboratory--Construction

0840-001-0001--For support of State Controller  . . . 
61,543,000

 61,793,000 

Schedule:

(a) 100000-Personal Services  . . .  65,654,000 
 65,844,000 

(b) 300000-Operating Expenses and Equipment  . . . 
32,743,000

 32,348,000 

(c) Reimbursements  . . .  -28,544,000 
 -28,089,000 

(d) Amount payable from the Motor Vehicle Fuel Account,
Transportation Tax Fund (Item 0840-001-0061)  . . . -2,904,000

(e) Amount payable from the Highway Users Tax Account,
Transportation Tax Fund (Item 0840-001-0062)  . . . -818,000

(f) Amount payable from the Local Revenue Fund (Item
0840-001-0330)  . . . -397,000

(g) Amount payable from the State School Building Lease-Purchase
Fund (Item 0840-001-0344)  . . . -716,000

(h) Amount payable from the Federal Trust Fund (Item
0840-001-0890)  . . . -1,289,000

(i) Amount payable from the State Penalty Fund (Item 0840-001-0903)
. . . -933,000

(j) Amount payable from nongovernmental cost funds, (Retail Sales
Tax Fund) (Item 0840-001-0988)  . . . -181,000

(k) Amount payable from various special funds (Item 0840-011-0494)
. . . -181,000

(l) Amount payable from various bond funds (Item 0840-011-0797)
. . . -715,000

(m) Amount payable from various nongovernmental cost funds (Item
0840-011-0988)  . . . -176,000

Provisions:

1. The appropriation made by this item shall be in lieu of the
appropriation in Section 1564 of the Code of Civil Procedure for all
costs, expenses, or obligations connected with the administration of
the Unclaimed Property Law, with the exception of payment of
owners' or holders' claims pursuant to Section 1540, 1542, 1560, or
1561 of the Code of Civil Procedure, or of payment of the costs of
compensating contractors for locating and recovering unclaimed
property due the state.

2. Of the claims received for reimbursement of court-ordered or
voluntary desegregation programs pursuant to Sections 42243.6,
42247, and 42249 of the Education Code, the Controller shall pay only

those claims that have been subjected to audit by school districts in

accordance with the Controller's procedures manual for conducting
audits of education desegregation claims. Furthermore, the Controller

shall pay only those past-year actual claims for desegregation
program
costs that are accompanied by all reports issued by the auditing
entity,
unless the auditing entity was the Controller.

3. No less than 0.9 personnel-year in the Audits Division shall be
used
to audit education desegregation claims.

4. The Controller may, with the concurrence of the Director of
Finance
and the Chairperson of the Joint Legislative Budget Committee, bill
affected state departments for activities required by Section 20050
of
the State Administrative Manual,  relating to the administration of
federal pass-through funds.

No billing may be sent to affected departments sooner than 30 days
after the Chairperson of the Joint Legislative Budget Committee has
been notified by the Director of Finance that he or she concurs with
the amounts specified in the billings.

5. (a) Notwithstanding subdivision (b) of Section 1531 of the Code of

Civil Procedure, the Controller may publish notice in any manner that

the Controller determines reasonable, provided that: (1) none of the
moneys used for this purpose may be redirected from funding for the
Controller's audit activities, (2) no photograph is used in the
publication of notice, and (3) no elected official's name is used in
the
publication of notice.

(b) No funds appropriated by this act may be expended by the
Controller to provide information to the public, other than holders
of
unclaimed property (as defined in subdivision (e) of Section 1501 of
the Code of Civil Procedure), concerning the unclaimed property
program or possible existence of unclaimed property held by the
Controller's office, except for informational announcements to the
news media or through the exchange of information on electronic
bulletin boards. 

6. The Controller shall increase his or her audits of the provider
billings in the Medi-Cal program in such a manner as to enhance
General Fund resources by at least $18,350,000 (in addition to any
corresponding enhancement in federal funds).  

6. The Controller's Office shall, through audits of Medi-Cal program
and providers, enhance the General Fund resources or reduce the
General Fund expenditures in the amount of $22,100,000, through
identification of overpayments, cost avoidance, and other appropriate

measures. 

7. Of the moneys appropriated to the Controller by this act, the
Controller shall not expend more than $500,000 to conduct post
eligibility fraud audits of the Supplemental Security Income/State
Supplementary Payment Program (SSI/SSP).

8. The Commission on State Mandates shall provide, in applicable
parameters and guidelines, as follows:

(a) If a local agency or school district contracts with an
independent
contractor for the preparation and submission of reimbursement
claims, the costs reimbursable by the state for that purpose shall
not
exceed the lesser of (1) 10 percent of the amount of the claims
prepared and submitted by the independent contractor, or (2) the
actual
costs that would necessarily have been incurred for that purpose if
performed by employees of the local agency or school district.

(b) The maximum amount of reimbursement provided in subdivision
(a) may be exceeded only if the local agency or school district
establishes, by appropriate documentation, that the preparation and
submission of these claims could not have been accomplished without
incurring the additional costs claimed by the local agency or school
district.

9. The funds appropriated to the Controller by this act may not be
expended for any performance review or performance audit except
pursuant to specific statutory authority. It is the intent of the
Legislature that audits conducted by the Controller, or under the
direction of the Controller, shall be fiscal audits that focus on
claims
and disbursements, as provided for in Section 12410 of the
Government Code. Any report, audit, analysis, or evaluation issued by

the Controller for the 1998-99 fiscal year shall cite the specific
statutory or constitutional provision authorizing the preparation and

release of the report, audit, analysis, or evaluation.

10. The Controller shall deliver his or her monthly report on General

Fund cash receipts and disbursements within 10 days after the close
of each month to the Joint Legislative Budget Committee, the fiscal
committees of the Legislature, the Department of Finance, the
Treasurer's office, and the Office of the Legislative Analyst.

11. For purposes of the review and payment of any claim for
reimbursement by local government submitted pursuant to Section
54954.4 of the Government Code, the Controller shall use the
procedures that were in effect at the time the claim was submitted.

 12. Of the funds appropriated by this item, $426,000 shall
be
available for expenditure by the Controller to fund development of an

automated statewide travel expense reimbursement system only after
the Controller has declared, as part of the monthly reporting process

to the Department of Information Technology, that all Year 2000
remediation work is complete and no further Year 2000 remediation
activity of any kind is foreseen for all the mission critical systems
of
the Controller.

  12. The Controller shall not release a Request for
Proposal
for an automated statewide travel expense reimbursement system until
the Controller has declared, as part of the monthly reporting process

to the Department of Information Technology, that all
mission-critical
Year 2000 projects are complete and that no further Year 2000
activity
for mission critical systems is foreseen.

   Once the Request for Proposal is released, the Director of Finance

may allocate funds from Item 9903-001-0988 for the hiring of external

consultants to develop and implement this system. 

0840-001-0061--For support of State Controller, for payment to Item
0840-001-0001, payable from the Motor Vehicle Fuel Account,
Transportation Tax Fund  . . . 2,904,000

0840-001-0062--For support of State Controller, for payment to Item
0840-001-0001, payable from the Highway Users Tax Account,
Transportation Tax Fund  . . . 818,000

0840-001-0330--For support of State Controller, for payment to Item
0840-001-0001, payable from the Local Revenue Fund  . . . 397,000

0840-001-0344--For support of State Controller, for payment to Item
0840-001-0001, payable from the State School Building
Lease-Purchase Fund  . . . 716,000

0840-001-0890--For support of Controller, for payment to Item
0840-001-0001, payable from the Federal Trust Fund  . . . 1,289,000

0840-001-0903--For support of State Controller, for payment to Item
0840-001-0001, payable from the State Penalty Fund  . . . 933,000

0840-001-0988--For support of State Controller, for payment to Item
0840-001-0001, payable from nongovernmental cost funds (Retail
Sales Tax Fund)  . . . 181,000

0840-011-0494--For support of Controller, for payment to Item
0840-001-0001, payable from the various special funds  . . . 181,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance
may authorize expenditures in excess of the amount appropriated by
this item not sooner than 30 days after notification in writing of
the
necessity therefor is provided to the chairpersons of the fiscal
committees and the Chairperson of the Joint Legislative Budget
Committee, or not sooner than whatever lesser time the chairperson of

the committee, or his or her designee, may in each instance
determine.

0840-011-0797--For support of Controller, for payment to Item
0840-001-0001, payable from the various bond funds  . . . 715,000

Provisions:

1. Notwithstanding any other provision of law, the Director of the
Department of Finance may authorize expenditures in excess of the
amount appropriated by this item not sooner than 30 days after
notification in writing of the necessity therefor is provided to the
chairpersons of the fiscal committees and the Chairperson of the
Joint
Legislative Budget Committee, or not sooner than whatever lesser time

the chairperson of the committee,  or his or her designee, may in
each
instance determine.

0840-011-0988--For support of Controller, for payment to Item
0840-001-0001, payable from the various nongovernmental cost funds
. . . 176,000

Provisions:

1. Notwithstanding any other provision of law, the Director of the
Department of Finance may authorize expenditures in excess of the
amount appropriated by this item not sooner than 30 days after
notification in writing of the necessity therefor is provided to the
chairpersons of the fiscal committees and the Chairperson of the
Joint
Legislative Budget Committee, or not sooner than whatever lesser time

the chairperson of the committee, or his or her designee, may in each

instance determine.

0840-101-0071--For local assistance, payable from the Yosemite
Foundation Account in the California Environmental License Plate
Fund  . . . 456,000

Provisions:

1. There is hereby appropriated to the Controller for allocation to
the
Yosemite Foundation all moneys deposited in the account for
activities
authorized pursuant to Article 8.4 (commencing with Section 5060) of
Chapter 1 of Division 3 of the Vehicle Code (Ch. 1273, Stats. 1992).


0840-101-0979--For allocation by the Controller from the California
Firefighters' Memorial Fund  . . . 95,000

Provisions:

1. The funds appropriated in this item are to be allocated as
follows:

(a) To the Franchise Tax Board and Controller for reimbursement of
costs incurred in connection with duties under Article 9 (commencing
with Section 18801) of Chapter 3 of Part 10.2 of Division 2 of the
Revenue and Taxation Code.

(b) To the California Fire Foundation the balance in that fund for
the
construction of a memorial as authorized in that article.

0845-001-0001--For support of Department of Insurance  . . . 750,000

Schedule:

(a) 30-Tax Collection and Audit  . . . 750,000

0845-001-0217--For support of Department of Insurance, payable
from the Insurance Fund  . . .  95,144,000 
 95,365,000 

Schedule:

(a) 10-Regulation of Insurance Companies and Insurance Producers
. . .  73,453,000 
 52,018,000 

 (ax) 12-Consumer Protection  . . . 21,656,000 

(b) 20-Fraud Control  . . . 22,401,000

(c) 50.01-Administration  . . .  14,688,000 
 14,476,000 

(d) 50.02-Distributed Administration  . . .  -14,688,000

 -14,476,000 

(e) Reimbursements  . . . -710,000

Provisions:

1. Of the funds appropriated in this item, the Controller shall
transfer
$1,923,000 as of July 1, 1998, to the Department of Aging for support

of the Health Insurance Counseling and Advocacy Program.

2. Of the funds appropriated in this item, the Controller shall
transfer
$478,000 as of July 1, 1998, to the State and Consumer Services
Agency for support of the Office of Insurance Advisor, to provide
assistance to the Governor on insurance related matters.

3. Of the funds appropriated in this item, an amount not to exceed
$600,000 shall be used solely to cover intervenor compensation costs
allowable under subdivision (b) of Section 1861.10 of the Insurance
Code.

0845-001-0548--For support of Department of Insurance, payable
from the Title Insurance Fund  . . . 250,000

Schedule:

(a) 10-Regulation of Insurance Companies and Insurance Producers
. . . 250,000

0845-101-0217--For local assistance, Department of Insurance,
Program 20-Fraud Control, payable from the Insurance Fund  . . .
26,259,000

0855-001-0567--For support of the California Gambling Control
Commission, payable from the Gambling Control Fund  . . . 615,000

Schedule:

(a) 10-California Gambling Control Commission  . . . 615,000

0860-001-0001--For support of State Board of Equalization  . . .

184,828,000 
 184,673,000 

Schedule:

(a) 100000-Personal Services  . . . 216,163,000

(b) 300000-Operating Expenses and Equipment  . . . 
79,641,000

 79,429,000 

(c) Reimbursements  . . .  -86,718,000 
 -86,661,000 

(d) Amount payable from the Breast Cancer Fund (Item
0860-001-0004)  . . . -101,000

(e) Amount payable from the State Emergency Telephone Number
Special Account, General Fund (Item 0860-001-0022)  . . . -676,000

(f) Amount payable from the Motor Vehicle Fuel Account,
Transportation Tax Fund (Item 0860-001-0061)  . . . -16,210,000

(g) Amount payable from the Occupational Lead Poisoning Prevention
Account, General Fund (Item 0860-001-0070)  . . . -492,000

(h) Amount payable from the Childhood Lead Poisoning Prevention
Fund (Item 0860-001-0080)  . . . -577,000

(j) Amount payable from the Cigarette and Tobacco Products Surtax
Fund (Item 0860-001-0230)  . . . -1,214,000

(k) Amount payable from the Oil Spill Prevention and Administration
Fund (Item 0860-001-0320)  . . . -227,000

(l) Amount payable from the Integrated Waste Management Account,
Integrated Waste Management Fund (Item 0860-001-0387)  . . .
-351,000

(m) Amount payable from the Underground Storage Tank Cleanup
Fund, (Item 0860-001-0439)  . . . -1,264,000

(n) Amount payable from the Energy Resources Programs Account,
General Fund (Item 0860-001-0465)  . . . -165,000

(o) Amount payable from the Federal Trust Fund (Item
0860-001-0890)  . . . -194,000

(p) Amount payable from the Timber Tax Fund (Item 0860-001-0965)
. . . -2,787,000

 Provisions:

1. Notwithstanding any other provision of law, each member of the
State Board of Equalization may, using the existing staff allocation
for
that board member office, employ two persons at the level of Tax
Counsel III (Specialist). 

0860-001-0004--For support of State Board of Equalization, for
payment to Item 0860-001-0001, payable from the Breast Cancer Fund
. . . 101,000

Provisions:

1. Notwithstanding Section 30461.6 of the Revenue and Taxation
Code, or any other provision of law, sufficient funds to cover the
costs
of the State  Board of Equalization for the collection and
enforcement
of fees to be deposited in the Breast Cancer Fund shall be retained
in
the fund, and be available to be appropriated to the board.

0860-001-0022--For support of State Board of Equalization, for
payment to Item 0860-001-0001, payable from the State Emergency
Telephone Number Special Account, General Fund  . . . 676,000

0860-001-0061--For support of State Board of Equalization, for
payment to Item 0860-001-0001, payable from the Motor Vehicle Fuel
Account, Transportation Tax Fund  . . . 16,210,000

0860-001-0070--For support of State Board of Equalization, for
payment to Item 0860-001-0001, payable from the Occupational Lead
Poisoning Prevention Account, General Fund  . . . 492,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified by
Section 13332.18 of the Government Code.

0860-001-0080--For support of State Board of Equalization, for
payment to Item 0860-001-0001, payable from the Childhood Lead
Poisoning Prevention Fund  . . . 577,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified by
Section 13332.18 of the Government Code.

0860-001-0230--For support of State Board of Equalization, for
payment to Item 0860-001-0001, payable from the Cigarette and
Tobacco Products Surtax Fund  . . . 1,214,000

0860-001-0320--For support of State Board of Equalization, for
payment to Item 0860-001-0001, payable from the Oil Spill Prevention
and Administration Fund  . . . 227,000

0860-001-0387--For support of State Board of Equalization, for
payment to Item 0860-001-0001, payable from the Integrated Waste
Management Account, Integrated Waste Management Fund  . . .
351,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified by
Section 13332.18 of the Government Code.

0860-001-0439--For support of State Board of Equalization, for
payment to Item 0860-001-0001, payable from the Underground
Storage Tank Cleanup Fund  . . . 1,264,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

0860-001-0465--For support of State Board of Equalization, for
payment to Item 0860-001-0001, payable from the Energy Resources
Programs Account, General Fund  . . . 165,000

0860-001-0890--For support of State Board of Equalization, for
payment to Item 0860-001-0001, payable from the Federal Trust Fund
. . . 194,000

0860-001-0965--For support of State Board of Equalization, for
payment to Item 0860-001-0001, payable from the Timber Tax Fund
. . . 2,787,000

0890-001-0001--For support of Secretary of State  . . . 
23,156,000

22,826,000 

Schedule:

(a) 100000-Personal Services  . . .  20,755,980 
 20,629,768 

(b) 300000-Operating Expenses and Equipment  . . . 
18,547,020

 18,343,232 

(c) Special Item of Expense-Election Related Costs  . . . 9,223,000

(d) Reimbursements  . . . -6,126,000

(e) Amount payable from the Secretary of State Business Fees Fund
(Item 0890-001-0228)  . . . -18,873,000

(f) Amount payable from the Business Reinvestment Fund (Item
0890-001-0274)  . . . -371,000

Provisions:

1. Of the funds appropriated in this item, $972,000 shall be
available
for support of the California Gold Discovery to Statehood
Sesquicentennial Commission.

0890-001-0228--For support of Secretary of State, for payment to Item

0890-001-0001, payable from the Secretary of State Business Fees
Fund  . . . 18,873,000

Provisions:

1. Notwithstanding any other provision of law, the Secretary of State

may expend an amount not to exceed $538,000 of the funds
appropriated by this item for the investigation and prosecution of
voter
fraud in California.

0890-001-0274--For support of Secretary of State, for payment to Item

0890-001-0001, payable from the Business Reinvestment Fund  . . .
371,000

0890-003-0001--For support of Secretary of State for rental payments
on lease revenue bonds  . . . 89,000

Schedule:

(a) Base Rental and Fees  . . . 9,549,000

(b) Structural Insurance  . . . 44,000

(c) Reimbursements  . . . -9,504,000

0890-003-0228--For support of Secretary of State for rental payments
on lease revenue bonds, payable from the Secretary of State Business
Fees Fund  . . . 27,000

Schedule:

(a) Base Rental and Fees  . . . 2,949,000

(b) Structural Insurance  . . . 13,000

(c) Reimbursements  . . . -2,935,000

0890-295-0001--For local assistance, Secretary of State, for
reimbursement, in accordance with Section 6 of Article XIII B of the
California Constitution or Section 17561 of the Government Code, of
the costs of any new program or increased level of service of an
existing program mandated by statute or executive order, State
Controller  . . . 7,669,000

Schedule:

(1) 98.01.007.778-Absentee ballots (Ch. 77, Stats. 78)  . . .
5,968,000

(2) 98.01.039.188-Brendon Maguire Act (Ch. 391, Stats. 88)  . . .

          1,000

(3) 98.01.049.479-Handicapped voter access (Ch. 494, Stats. 79)  . .

. 0

(4) 98.01.070.475-Voter registration procedures (Ch. 704, Stats. 75)
. . . 1,383,000

(5) 98.01.101.381-Local elections (Ch. 1013, Stats. 81)  . . . 0

(6) 98.01.140.176-Voter registration roll purge (Ch. 1401, Stats. 76)

. . . 0

(7) 98.01.142.282-Permanent absent voters (Ch. 1422, Stats. 82)  . .

. 317,000

(8) 98.01.160.382-Democratic presidential delegates (Ch. 1603, Stats.

82)  . . . 0

(9) 98.01.104.285-Election materials (Ch. 1042, Stats. 85)  . . . 0

Provisions:

1. Except as provided in Provision 2 of this item, allocations of
funds
provided in this item to the appropriate local entities shall be made
by
the State Controller in accordance with the provisions of each
statute
or executive order that mandates the reimbursement of the costs, and
shall be audited to verify the actual amount of the mandated costs in

accordance with subdivision (d) of Section 17561 of the Government
Code. Audit adjustments to prior year claims may be paid from this
item. Funds appropriated in this item may be used to provide
reimbursement pursuant to Article 5 (commencing with Section
17615) of Chapter 4 of Part 7 of Division 4 of Title 2 of the
Government Code.

2. If any of the scheduled amounts are insufficient to provide full
reimbursement of costs, the State Controller may, upon notifying the
Director of Finance in writing, augment those deficient amounts from
the unencumbered balance of any other scheduled amounts in this
item. No order may be issued pursuant to this provision unless
written
notification of the necessity therefor is provided to the chairperson
of
the committee in each house that considers appropriations and the
Chairperson of the Joint Legislative Budget Committee or his or her
designee.

3. Pursuant to Section 17581 of the Government Code, mandates
identified in the appropriation schedule of this item with an
appropriation of $0 and included in the language of this provision
are
specifically identified by the Legislature for suspension during the
1998-99 fiscal year:

(a) Handicapped voter access (Ch. 494, Stats. 1979).

(b) Local elections (Ch. 1013, Stats. 1981).

(c) Voter registration roll purge (Ch. 1401, Stats. 1976).

(d) Democratic presidential delegates (Ch. 1603, Stats. 1982, and Ch.

8, Stats. 1988).

(e) Election materials (Ch. 1042, Stats. 1985)

0950-001-0001--For support of State Treasurer  . . . 6,722,000

Schedule:

(a) 100000-Personal Services  . . . 13,482,000

(b) 300000-Operating Expenses and Equipment  . . . 6,328,000

(c) Reimbursements  . . . -12,747,000

(d) Amount payable from the Local Agency Deposit Security Fund
(Item 0950-001-0240)  . . . -341,000

Provisions:

1. The State Treasurer shall seek to increase the reimbursement rates

charged to those departments or programs that receive services from
the State Treasurer's Office's Item Processing system by an amount
sufficient to recover from those departments or programs, over a
five-year period, beginning not later than fiscal year 1999-2000,
their
fair share of the $3.78 million cost of upgrading the system to be
Year
2000-compliant. Those departments or programs include, but are not
limited to, the Department of Health Services' Women, Infant and
Children's Program, and the Employment Development Department's
Unemployment and Disability Insurance Program.

0950-001-0240--For support of the State Treasurer, for payment to
Item 0950-001-0001, payable from the Local Agency Deposit Security
Fund  . . . 341,000

0956-001-0171--For support of California Debt and Investment
Advisory Commission, payable from the California Debt and
Investment Advisory Commission Fund  . . . 1,588,000

Schedule:

(a) 10-California Debt and Investment Advisory Commission  . . .
1,688,000

(b) Reimbursements  . . . -100,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance
may authorize expenditures for the California Debt and Investment
Advisory Commission in excess of the amount appropriated not sooner
than 30 days after notification in writing of the necessity therefor
is
provided to the chairpersons of the fiscal committees and the
Chairperson of the Joint Legislative Budget Committee, or not sooner
than whatever lesser time the chairperson of the committee, or his or

her designee, may in each instance determine.

0959-001-0169--For support of California Debt Limit Allocation
Committee, payable from the California Debt Limit Allocation
Committee Fund  . . . 555,000

Schedule:

(a) 10-Debt Limit Allocation Committee  . . . 555,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance
may authorize expenditures for the California Debt Limit Allocation
Committee in excess of the amount appropriated not sooner than 30
days after notification in writing of the necessity therefor is
provided
to the chairpersons of the fiscal committees and the Chairperson of
the
Joint Legislative Budget Committee, or not sooner than whatever
lesser time the chairperson of the committee, or his or her designee,

may in each instance determine.

2. Of the amount appropriated in this item, the amount of $48,000
shall be used for all of the following purposes:

(a) Developing a database that tracks the income groups served by
each agency receiving
bond authority from the California Debt Limit Allocation Committee.

(b) Identifying the income groups most in need of housing assistance
in each of the state's regions.

(c) Recommending findings to the California Debt Limit Allocation
Committee based on the compiled data.

0965-001-0215--For support of California Industrial Development
Financing Advisory Commission, payable from the Industrial
Development Fund  . . . 447,000

Schedule:

(a) 10-Industrial Development Financing Advisory Commission  . . .
447,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance
may authorize expenditures for the California Industrial Development
Financing Advisory Commission in excess of the amount appropriated
not sooner than 30 days after notification in writing of the
necessity
therefor is provided to the chairpersons of the fiscal committees and

the Chairperson of the Joint Legislative Budget Committee, or not
sooner than whatever lesser time the chairperson of the committee, or

his or her designee, may in each instance determine.

0968-001-0448--For support of California Tax Credit Allocation
Committee, payable from the Occupancy Compliance Monitoring
Account  . . . 563,000

Schedule:

(a) 10-California Tax Credit Allocation Committee  . . . 563,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance
may authorize expenditures for the California Tax Credit Allocation
Committee in excess of the amount appropriated not sooner than 30
days after notification in writing of the necessity therefor is
provided
to the chairpersons of the fiscal committees and the Chairperson of
the
Joint Legislative Budget Committee, or not  sooner than whatever
lesser time the chairperson of the committee, or his or her designee,

may in each instance determine.

0968-001-0457--For support of California Tax Credit Allocation
Committee, payable from the Tax Credit Allocation Fee Account  . .
. 1,158,000

Schedule:

(a) 10-California Tax Credit Allocation Committee  . . . 1,188,000

(b) Reimbursements  . . . -30,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance
may authorize expenditures for the California Tax Credit Allocation
Committee in excess of the amount appropriated not sooner than 30
days after notification in writing of the necessity therefor is
provided
to the chairpersons of the fiscal committees and the Chairperson of
the
Joint Legislative Budget Committee, or not sooner than whatever
lesser time the chairperson of the committee, or his or her designee,

may in each instance determine.

0971-001-0528--For support of California Alternative Energy and
Advanced Transportation Financing Authority, payable from the
California Alternative Energy Authority Fund  . . . 125,000

Schedule:

(a) 10-California Alternative Energy and Advanced Transportation
Financing Authority  . . . 125,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance
may authorize expenditures for the California Alternative Energy and
Advanced Transportation Financing Authority in excess of the amount
appropriated not sooner than 30 days after notification in writing of
the
necessity therefor is provided to the chairpersons of the fiscal
committees and the Chairperson of the Joint Legislative Budget
Committee, or not sooner than whatever lesser time the chairperson of

the joint committee, or his or her designee, may in each instance
determine.

                              STATE AND CONSUMER SERVICES

1100-001-0001--For support of California Science Center  . . .

10,797,629 
 11,097,629 

Schedule:

(a) 10-Education  . . .  10,981,000 
 11,281,000 

(b) 30-California African-American Museum  . . . 3,448,629

(c) 40.01-Administration  . . . 1,038,000

(d) 40.02-Distributed Administration  . . . -1,038,000

(e) Reimbursements  . . . -1,462,000

(f) Amount payable from the Exposition Park Improvement Fund
(Item 1100-001-0267)  . . . -2,170,000

Provisions:

1. The Director of General Services shall not approve a contract,
permit, or lease agreement by the museum (excluding those for
museum exhibits) that reduces state revenues or increases state costs

by $25,000 or more unless, not sooner than 30 days prior to giving
his
or her approval, the director submits in writing to the Chairperson
of
the Joint Legislative Budget Committee notification of the director's

intent to approve that contract, permit, or lease, or not sooner than

such lesser time as the chairperson may in each instance determine.
This provision shall have no effect as to those contracts that the
legislative fiscal committees have examined as part of the budget
process or otherwise.

2. The Legislature recognizes that specialized functions, such as
exhibit maintenance and educational and guest service programs, may
require individual skills not generally available in state service.
It is the
intent of the Legislature to allow the California Science Center to
acquire these services from its auxiliary partner, the California
Museum Foundation. The California Science Center may transfer
funds for these services from the Personal Services Account to the
Operating Expense and Equipment Account, not sooner than 30 days
after notice thereof to the Joint Legislative Budget Committee.

3. The California Science Center may borrow funds from the
Architectural Revolving Fund for special repair projects authorized
in
this item and funded from the County of Los Angeles, the Federal
Emergency Management Agency, and the Foundation of the California
African-American Museum. Any such loan shall be repaid to the
Architectural Revolving Fund by the California Science Center by
June 30, 1999. 

4. The following positions shall be converted to one-year
limited-term
positions: Executive Director; Deputy Director (Exhibits and
Education); Deputy Director (Administration); Deputy Director
(Operations); Chief Administrative Officer; Manager of Exhibit
Services; Fiscal Officer; and Personnel Officer. The Legislature
shall
review the need for continuing these positions beyond the 1998-99
fiscal year upon review and analysis of a study of Exposition Park
regarding a strategic long-term plan for future uses of the park and
establishing a more streamlined, cohesive, and integrated management
of the components of the park.

  4. By February 1, 1999, the California Science Center
shall
report to the Joint Legislative Budget Committee, the fiscal
committees of each house of the Legislature, and the Assembly Select
Committee on Exposition Park its response to the final
recommendations of the Exposition Park Strategic Plan study. It is
the
intent of the Legislature to consider the study recommendations and
the California Science Center's response during the review of the
budget for the 1999-2000 fiscal year.  

1100-001-0267--For support of California Science Center for payment
to Item 1100-001-0001, payable from the Exposition Park
Improvement Fund  . . . 2,170,000

1100-003-0001--For support of the California Science Center for
rental payments on lease revenue bonds  . . . 2,429,000

Schedule:

(a) Base rental  . . . 2,404,000

(b) Insurance  . . . 25,000

1100-301-0001--For capital outlay, California Science Center  . . .
10,000,000

Schedule:

(1) 11.00.001--Renovation of California African American Museum
 (CAAM), preliminary    (CAAM)--preliminary

plans, working drawings, construction  . . . 25,000 

(2) 11.00.002 Parking garage--Phase I, working drawings and
construction  . . . 10,000,000  

(2) 1100.00.002-Masterplan Parking Facility, Phase I--Preliminary
plans, working drawings, and construction  . . . 10,000,000 

(3) Reimbursements  . . . -25,000

Provisions:

1. The California Science Center (CSC) may borrow funds from the
Architectural Revolving Fund for the projects authorized in Schedule
(1) of this item. Any such loan shall be repaid to the Architectural
Revolving Fund by the CSC by June 30, 1999. 

2. As a condition of the funds appropriated in Schedule (2), no state

funds shall be expended for this project until federal funds are
appropriated to finance a portion of the cost. In addition, all
revenues
from this parking structure, after budgeted expenditures for public
safety, shall be returned to the General Fund until the amount of the

state's contribution has been repaid. Then all parking revenues will
revert to the Exposition Park Improvement Fund.

  The funds appropriated in Schedule (2) are to be allocated by the
CSC, upon approval by the Department of Finance, for the
construction of a parking garage for which cost estimates or
preliminary plans can be developed during the 1989-99 fiscal year.
These funds may be used for all of the following: architectural
programming, engineering assessments, schematic design, working
drawings, preliminary plans, and construction.

  As used in this item "preliminary plans" shall include site
studies,
suitability reports, environmental studies, master planning,
architectural programming, and schematics.

  2. Funds appropriated for the Masterplan Parking
Facility
identified in Schedule (2) may not be expended until approved by the
Department of Finance.

3. As a condition of the expenditure of funds appropriated in
Schedule
(2), no state funds shall be expended until the federal funds
appropriated in Item 1100-301-0890 are available for expenditure.

4. All revenues from the operation of the project, net budgeted
expenditures for public safety and maintenance, as defined and
established in the 1998-99 budget year, shall be deposited to the
General Fund until the amount of the state's contribution for the
project has been repaid. After repayment, all revenues shall be
deposited to the Exposition Park Improvement Fund.

1100-301-0890--For capital outlay, California Science Center  . . .
19,500,000

Schedule:

(1) 11.00.002-Masterplan Parking Facility, Phase I--preliminary
plans,
working drawings and construction  . . . 19,500,000

Provisions:

1. If the federal funds for this project are appropriated to a local

jurisdiction rather than the California Science Center, reimbursement

expenditure authority for the project shall be available in lieu of
federal
fund expenditure authority. 

1111-001-0069--For transfer by the State Controller from the
Barbering and Cosmetology Fund to the Consumer Affairs Fund  . . .
 8,881,000 
 8,670,000 

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1111-001-0166--For transfer by the State Controller from the
Certification Account to the Consumer Affairs Fund  . . . 574,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1111-001-0239--For transfer by the State Controller from the Private
Security Services Fund to the Consumer Affairs Fund  . . . 5,339,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1111-001-0260--For transfer by the State Controller from the Nursing
Home Administrators' State License Examining Board Fund to the
Consumer Affairs Fund  . . . 452,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1111-001-0305--For transfer by the State Controller from the Private
Postsecondary and Vocational Education Administration Fund to the
Consumer Affairs Fund  . . . 8,352,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1111-001-0325--For transfer by the Controller from the Electronic and

Appliance Repair Fund to the Consumer Affairs Fund  . . . 1,493,000

Provisions:

1. The amount appropriated in this item may include revenues derived

from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1111-001-0421--For transfer by the State Controller from the Vehicle
Inspection and Repair Fund to the Consumer Affairs Fund  . . .

1,000 
 93,407,000 

Provisions:

1.   The funds appropriated by this item are scheduled as
follows:

(a) Education  . . . 738,000

(b) Smog Quality Assurance and Engineering  . . . 34,976,000

(c) Licensing  . . . 1,477,000

(d) Intake  . . . 7,201,000

(e) Mediation  . . . 5,372,000

(f) Enforcement  . . . 14,880,000

(g) Special Projects/PBB  . . . 4,499,000

(h) Consumer Protection Operations  . . . 24,264,000

(i) Administration  . . . (11,564,000)

2. The amount appropriated for each of the programs scheduled under
Provision 1 may be increased or decreased by an amount not to exceed
25 percent of the amount scheduled for that program.

3. The funds appropriated for transfer in this item shall only be
available for expenditure pursuant to Provisions 1 and 2.

4. Of the amount transferred pursuant to Provision 1(b), no more than

$5,300,000 shall be expended for the purpose of implementing a
remote sensing detection program that audits vehicular emissions. If
the Department of Consumer Affairs is unable to find a qualified
vendor to perform the audit function, the department may use the
funds to undertake this procedure. In either instance, the department

shall proceed with an implementation plan not sooner than 30 days
after notification in writing is provided to the chairperson of the
committee in each house of the Legislature which considers
appropriations and the Chairperson of the Joint Legislative Budget
Committee, or not sooner than whatever lesser time the Chairperson
of the Joint Legislative Budget Committee, or his or her designee,
may
in each instance determine.

5. Of the funds appropriated by this item, $975,000 shall be expended

for increased enforcement activities associated with the expanded
role
of Gold Shield stations, as specified in legislation enacted in the
1997-98 Regular Session of the Legislature.

6. Of the funds provided in Provision 1 (a) of this item, $60,000
shall
be expended to revise the Department of Consumer Affairs' brochure
for consumers whose vehicles have failed smog inspection.

7.   The amount appropriated in this item may include revenues
derived from the assessment of fines and penalties imposed as
specified in Section 13332.18 of the Government Code.

1111-001-0582--For transfer by the State Controller from the High
Polluter Repair or Removal Account to the Consumer Affairs Fund  .
. .  1,000 
 65,282,000 

Provisions:

1.  The funds appropriated by this item are scheduled as
follows:

(a) Education  . . . 98,000

(b) Smog Quality Assurance and Engineering  . . . 4,692,000

(c) Intake  . . . 1,526,000

(d) Enforcement  . . . 3,086,000

(e) Low Income Repair Assistance  . . . 20,000,000

(f) Accelerated Vehicle Retirement  . . . 32,880,000

(g) Dynamometer Cost Mitigation  . . . 3,000,000

2. Each of the programs in (a), (b), (c), and (d) scheduled under
Provision 1 above may be increased or decreased by an amount not to
exceed 25 percent of the total scheduled for that program in this
item.

3. The funds appropriated for transfer in this item shall only be
available for expenditure pursuant to Provisions 1 and 2.

4. Of the funds appropriated by this item, $325,000 shall be expended

for increased enforcement activities associated with the expanded
role
of the Gold Shield stations, as specified in legislation to be
enacted in
the 1997-98 Regular Session.

5.   The amount appropriated in this item may include revenues
derived from the assessment of fines and penalties imposed as
specified in Section 13332.18 of the Government Code.

1111-001-0717--For transfer by the State Controller from the
Cemetery Fund to the Consumer Affairs Fund  . . . 1,087,000

Provisions:

1. The amount appropriated in this item may include revenues derived

from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1111-001-0750--For transfer by the State Controller from the State
Funeral Directors and Embalmers Fund to the Consumer Affairs Fund
. . . 804,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1111-001-0752--For transfer by the State Controller from the Bureau
of Home Furnishings and Thermal Insulation Fund to the Consumer
Affairs Fund  . . . 3,209,000

Provisions:

1. The amount appropriated in this item may include revenues derived

from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1111-001-0769--For transfer by the State Controller from the Private
Investigator Fund to the Consumer Affairs Fund  . . . 572,000

Provisions:

1. The amount appropriated in this item may include revenues derived

from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1111-001-0890--For transfer by the State Controller from the Federal
Trust Fund to the Consumer Affairs Fund  . . . 1,000,000

Provisions:

1. Notwithstanding any other provision of law, the Federal Trust
Fund
Account of the Bureau for Private Postsecondary and Vocational
Education may borrow from the Private Postsecondary and Vocational
Education Administration Fund an amount not to exceed a cumulative
total of $500,000 for the purpose of meeting cash-flow needs for the
purposes funded by this item due to delays in collecting federal
funds.
Any loan made pursuant to this provision shall be made only upon
approval of the Department of Finance, and only if the Bureau
demonstrates and certifies that a sufficient surplus exists in the
Private
Postsecondary and Vocational Education Administration Fund to
support the amount of the loan, and that funds will be available from

the federal government to repay the loan. All money transferred shall

be repaid to the fund as soon as possible, but not later than one
year
from the date of the loan.

1111-001-0960--For transfer by the State Controller from the Student
Tuition Recovery Fund to the Consumer Affairs Fund  . . . (312,000)

Provisions:

1. The amount appropriated in this item may include revenues derived

from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1111-010-0702--For support of Department of Consumer
Affairs--Administrative and Consumer Services; Bureau of
Automotive Repair; Bureau of Electronic and Appliance Repair;
Bureau of Home Furnishings and Thermal Insulation; Bureau of
Security and Investigative Services; Arbitration Review Program;
Cemetery Program; Funeral Program; Barbering and Cosmetology
Program; Bureau of Private Postsecondary and Vocational Education;
and Nursing Home Administrator's Program- payable from the
Consumer Affairs Fund  . . .  32,077,000 
 190,553,000 

Schedule:

(a) 01.01-Support for Department of Consumer
Affairs--Administrative and Consumer Services; Bureau of
Automotive Repair; Bureau of Electronic and Appliance Repair;
Bureau of Home Furnishings and Thermal Insulation; Bureau of
Security and Investigative Services; Arbitration Review Program;
Cemetery Program; Funeral Program; Barbering and Cosmetology
Program; Bureau of Private Postsecondary and Vocational Education;
and Nursing Home Administrator's Program  . . .  57,780,000

 216,256,000 

(b) Reimbursements  . . . -25,703,000

Provisions:

1. Each transfer from Items 1111-001-0069, 1111-001-0166,
                                     1111-001-0239, 1111-001-0260,
1111-001-0305, 1111-001-0325,
1111-001-0421, 1111-001-0582, 1111-001-0717, 1111-001-0750,
1111-001-0752, 1111-001-0769, 1111-001-0890, and 1111-001-0960
may be increased or decreased by an amount not to exceed 15 percent
of the total of each transfer, without further authorization, to
reflect the
actual distributed costs of the program. In no case shall the total
transfers exceed the total appropriation in this item.

 2. Provisions 1 to 3, inclusive, of Item 1111-001-0421 also
apply
to this item.

3. Provisions 1 to 3, inclusive, of Item 1111-001-0582 also apply to
this item.  

2.

  4. 

The funds transferred in the items specified in Provision 1 shall be
used only for the purposes authorized under current law. 

3.

  5. 

The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

 6. The funds transferred to the Consumer Affairs Fund pursuant
to Item 1111-001-0069 shall not be used for expenses associated with
the relocation of existing Barbering and Cosmetology licensing
examination facilities, unless the Department of Consumers Affairs
has first provided a cost-benefit analysis report to the Joint
Legislative
Budget Committee and the Department of Finance. This report shall
include information on the adequacy of the current facility and the
service improvements to be gained by relocation. 

1120-001-0704--For support of Board of Accountancy, payable from
the Accountancy Fund  . . . 9,526,000

Schedule:

(a) 3-Board of Accountancy  . . . 9,730,000

(b) Reimbursements  . . . -204,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1130-001-0706--For support of California State Board of Architectural

Examiners, payable from the California State Board of Architectural
Examiners'  Fund  . . . 2,998,000

Schedule:

(a) 6-Board of Architectural Examiners  . . . 3,003,000

(b) Reimbursements  . . . -5,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1130-001-0757--For support of Landscape Architect Technical
Committee, payable from California Board of Architectural
Examiners-Landscape Architects Fund  . . . 572,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1140-001-0001--For support of State Athletic Commission  . . .
769,000

Schedule:

(a) 9-State Athletic Commission  . . . 936,000

(b) Amount payable from the Boxer's Pension Account (Item
1140-002-0008)  . . . -75,000

(c) Amount payable from the Boxer's Neurological Examinations
Account (Item 1140-001-0492)  . . . -92,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1140-001-0492--For support of State Athletic Commission, for
payment to Item 1140-001-0001, payable from the Boxer's
Neurological Examination  Account  . . . 92,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1140-002-0008--For support of State Athletic Commission, for
payment to Item 1140-001-0001, payable from the Boxer's Pension
Account  . . . 75,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1170-001-0773--For support of Board of Behavioral Science
Examiners of the State of California, payable from the Behavioral
Science Examiners  Fund  . . .  4,134,000 
 4,147,000 

Schedule:

(a) 18-Board of Behavioral Science Examiners  . . . 
4,310,000

 4,323,000 

(b) Reimbursements  . . . -176,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1230-001-0093--For support of Contractors' State License Board, for
payment to Item 1230-001-0735, payable from the Construction
Management Education Account, Contractors' License Fund  . . .
15,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1230-001-0735--For support of Contractors' State License Board,
payable from the Contractors' License Fund  . . . 41,911,000

Schedule:

(a) 30-Contractors' State License Board  . . . 42,179,000

(b) Reimbursements  . . . -253,000

(c) Amount payable from the Construction Management Education
Account, Contractors' License Fund (Item 1230-001-0093)  . . .
-15,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1260-001-0741--For support of Board of Dental Examiners of
California, payable from the State Dentistry Fund  . . . 5,782,000

Schedule:

(a) 36-Board of Dental Examiners  . . . 5,851,000

(b) Reimbursements  . . . -69,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1270-001-0380--For support of Board of Dental Examiners of
California, payable from the Dental Auxiliary Fund  . . . 1,223,000

Schedule:

(a) 36-Board of Dental Examiners  . . . 1,445,000

(b) Reimbursements  . . . -222,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1340-001-0205--For support of State Board of Registration for
Geologists and Geophysicists, Program 51, payable from the Geology
and Geophysics Fund  . . . 934,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1350-001-0024--For support of State Board of Guide Dogs for the
Blind, Program 54, payable from the Guide Dogs for the Blind Fund
. . . 93,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1390-001-0175--For support of Dispensing Opticians, Medical Board
of California, for payment to Item 1390-001-0758, payable from the
Dispensing Opticians Fund  . . . 280,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1390-001-0210--For support of Outpatient Settings, Medical Board of
California, for payment to Item 1390-001-0758, payable from the
Outpatient Setting Fund  . . . 26,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1390-001-0758--For support of Medical Board of California, payable
from the Contingent Fund of the Medical Board of California  . . .
32,684,000

Schedule:

(a) 63.10.010-Medical Board of California  . . . 33,829,000

(b) 63.15-Registered Dispensing Opticians  . . . 280,000

(c) 63.17-Outpatient Setting  . . . 26,000

(e) 63.10.020-Distributed Medical Board of California   . . .
-838,000

(f) Reimbursements  . . . -307,000

(g) Amount payable from the Dispensing Opticians Fund (Item
1390-001-0175)  . . . -280,000

(h) Amount payable from the Outpatient Setting Fund (Item
1390-001-0210)  . . . -26,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1400-001-0108--For support of Acupuncture Examining Committee,
Medical Board of California, payable from the Acupuncturists Fund
. . . 1,450,000

Schedule:

(a) 63.20-Acupuncture Committee  . . . 1,473,000

(b) Reimbursements  . . . -23,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1410-001-0208--For support of Hearing Aid Dispensers Examining
Committee, Medical Board of California, payable from the Hearing
Aid Dispensers Fund  . . . 439,000

Schedule:

(a) 63.30-Hearing Aid Dispensers Examining Committee  . . . 448,000

(b) Reimbursements  . . . -9,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1420-001-0759--For support of Physical Therapy Examining
Committee, Medical Board of California, payable from the Physical
Therapy Fund  . . . 1,785,000

Schedule:

(a) 63.40-Physical Therapy Examining Committee  . . . 1,884,000

(b) Reimbursements  . . . -99,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1430-001-0280--For support of Physician Assistant Examining
Committee, Medical Board of California, payable from the Physician
Assistant Fund  . . . 806,000

Schedule:

(a) 63.50-Physician Assistant Examining Committee  . . . 814,000

(b) Reimbursements  . . . -8,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1440-001-0295--For support of California Board of Podiatric
Medicine, payable from the Podiatry Fund  . . . 1,005,000

Schedule:

(a) 63.60-Board of Podiatric Medicine  . . . 1,009,000

(b) Reimbursements  . . . -4,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1450-001-0310--For support of Board of Psychology, Medical Board
of California, payable from the Psychology Fund  . . . 2,791,000

Schedule:

(a) 63.70-Board of Psychology  . . . 2,830,000

(b) Reimbursements  . . . -39,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1455-001-0319--For support of Respiratory Care Examining
Committee, Medical Board of California, payable from the Respiratory
Care Fund  . . . 1,737,000

Schedule:

(a) 63.75-Respiratory Care Examining Committee  . . . 1,803,000

(b) Reimbursements  . . . -66,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1460-001-0376--For support of Speech Pathology and Audiology
Examining Committee, Medical Board of California, payable from the
Speech Pathology and Audiology Examining Committee Fund  . . .
347,000

Schedule:

(a) 63.80-Speech Pathology and Audiology Committee  . . . 359,000

(b) Reimbursements  . . . -12,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1480-001-0763--For support of State Board of Optometry, payable
from the State Optometry Fund  . . . 1,047,000

Schedule:

(a) 69-Board of Optometry  . . . 1,053,000

(b) Reimbursements  . . . -6,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1490-001-0767--For support of California State Board of Pharmacy,
payable from the Pharmacy Board Contingent Fund  . . . 5,654,000

Schedule:

(a) 72-Board of Pharmacy  . . . 5,864,000

(b) Reimbursements  . . . -210,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1500-001-0770--For support of State Board of Registration for
Professional Engineers and Land Surveyors, payable from the
Professional Engineers' and Land Surveyors' Fund  . . . 7,127,000

Schedule:

(a) 75-State Board of Registration for Professional Engineers and
Land
Surveyors  . . . 7,143,000

(b) Reimbursements  . . . -16,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1510-001-0761--For support of Board of Registered Nursing, payable
from the Board of Registered Nursing Fund  . . . 12,319,000

Schedule:

(a) 78-Board of Registered Nursing  . . . 12,862,000

(b) Reimbursements  . . . -543,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1520-001-0771--For support of Court Reporters Board of California,
payable from the Court Reporters' Fund  . . . 533,000

Schedule:

(a) 81-Court Reporters Board  . . . 534,000

(b) Reimbursements  . . . -1,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1530-001-0399--For support of Structural Pest Control Board, for
payment to Item 1530-001-0775, payable from the Structural Pest
Control Education and Enforcement Fund  . . . 270,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1530-001-0775--For support of Structural Pest Control Board, payable
from the Structural Pest Control Fund  . . . 3,308,000

Schedule:

(a) 84-Structural Pest Control Board  . . . 3,580,000

(b) Reimbursements  . . . -2,000

(c) Amount payable from the Structural Pest Control Education and
Enforcement Fund (Item 1530-001-0399)  . . . -270,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1560-001-0777--For support of Veterinary Medical Board and the
Registered Veterinary Technician Committee, payable from the
Veterinary Medical Board Contingent Fund  . . . 1,354,000

Schedule:

(a) 90.10.010-Veterinary Medical Board  . . . 1,380,000

(b) Reimbursements  . . . -26,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1590-001-0779--For support of Board of Vocational Nurse and
Psychiatric Technician Examiners of the State of California, payable
from the Vocational Nurse and Psychiatric Technician Examiners'
Fund, Vocational Nurses Account  . . . 3,418,000

Schedule:

(a) 91.10.010-Vocational Nurses  . . . 3,679,000

(b) 91.10.020-Distributed Vocational Nurses  . . . -37,000

(c) Reimbursements  . . . -224,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

1600-001-0780--For support of Board of Vocational Nurse and
Psychiatric Technician Examiners of the State of California, payable
from the Vocational Nurse and Psychiatric Technician Examiners
Fund, Psychiatric Technicians Account  . . . 978,000

Schedule:

(a) 91-Board of Vocational Nurse and Psychiatric Technician
Examiners  . . . 989,000

(b) Reimbursements  . . . -11,000

Provisions:

1. The funds appropriated by this item are from the moneys deposited
pursuant to Section 4547 of the Business and Professions Code.

2. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

1700-001-0001--For support of Department of Fair Employment and
Housing  . . .  15,145,000 
 14,846,000 

Schedule:

(a) 50-Administration of Civil Rights Law  . . .  19,136,000

 18,837,000 

(b) Reimbursements  . . . -15,000

(c) Amount payable from the Federal Trust Fund (Item
1700-001-0890)  . . . -3,976,000

 Provisions:

1. The Director of Finance may allocate funds from Provision 2 of
Item 9903-001-0001 for the purchase of data processing hardware,
software, related equipment, and services to enable the Department of

Fair Employment and Housing to implement the necessary automation
enhancements to its existing information systems, upon at least 30
days' notice to the Chairperson of the Joint Legislative Budget
Committee and the chairperson of the committee in each house of the
Legislature that considers the budget. 

1700-001-0890--For support of Department of Fair Employment and
Housing, for payment to Item 1700-001-0001, payable from the
Federal Trust Fund  . . . 3,976,000

1705-001-0001--For support of the Fair Employment and Housing
Commission  . . .  1,095,000 
 1,099,000 

Schedule:

(a) 10-Fair Employment and Housing Commission  . . . 
1,245,000

 1,249,000 

(b) Reimbursements  . . . -150,000

1730-001-0001--For support of Franchise Tax Board  . . . 
353,414,000 
 347,313,000 

Schedule:

(a) 10-Tax Programs  . . .  347,593,000 
 341,826,000 

(b) 20-Homeowners and Renters Assistance  . . . 2,220,000

(c) 30-Political Reform Audit (1,271,000)  . . . 0

(d) 40-Child Support Collections  . . . 11,051,000

(e) 50-DMV Collections  . . . 7,927,000

(f) 60-Court Collections  . . . 815,000

(g) 70-Contract Work  . . .  7,272,000 
 6,272,000 

(h) 80.01-Administration  . . . 21,370,000

(i) 80.02-Distributed Administration  . . . -21,370,000

(j) Reimbursements  . . .  -14,230,000 
 -13,564,000 

(k) Amount payable from the State Highway Account, State
Transportation Fund (Item 1730-0010042)  . . . -2,000

(l) Amount payable from the Motor Vehicle Account, State
Transportation Fund (Item 1730-001-0044)  . . . -2,792,000

(m) Amount payable from the Motor Vehicle License Fee Account,
Transportation Tax Fund (Item 1730-001-0064)  . . . -5,133,000

(n) Amount payable from the Delinquent Tax Collection Fund (Section
19378 of the Revenue and Taxation Code)  . . . -404,000

(o) Amount payable from the Rare Fish, Wildlife, and Plant Species
Conservation and Enhancement Account, Fish and Game Preservation
Fund (Item 1730-001-0200)  . . . -13,000

(p) Amount payable from the Court Collection Account (Item
1730-001-0242)  . . . -815,000

(r) Amount payable from the State Children's Trust Fund (Item
1730-001-0803)  . . . -11,000

(s) Amount payable from the California Alzheimer's Disease and
Related Disorders Research Fund (Item 1730-001-0823)  . . . -11,000

(t) Amount payable from the California Military Museum Fund (Item
1730-001-0875)  . . . -6,000

(u) Amount payable from the D.A.R.E. California (Drug Abuse
Resistance Education) Fund (Item 1730-001-0876)  . . . -6,000

(v) Amount payable from the California Seniors Special Fund (Item
1730-001-0886)  . . . -4,000

(w) Amount payable from the California Election Campaign Fund
(Item 1730-001-0905)  . . . -5,000

(x) Amount payable from the California Breast Cancer Research Fund
(Item 1730-001-0945)  . . . -7,000

(y) Amount payable from the Public Schools Library Protection Fund
(Item 1730-001-0975)  . . . -11,000

(z) Amount payable from the Firefighters' Memorial Fund (Item
1730-001-0979)  . . . -7,000

(aa) Amount payable from the California Seniors Fund (Item
1730-001-0983)  . . . -7,000

Provisions:

1. It is the intent of the Legislature that the Franchise Tax Board
resolve tax controversies, without litigation, on a basis that is
fair to
both the state and the taxpayer and in a manner that will enhance
voluntary compliance and public confidence in the integrity and
efficiency of the board.

2. During the 1998-99 fiscal year, the collection cost recovery fee
for
purposes of subparagraph (A) of paragraph (1) of subdivision (a) of
Section 19254 of the Revenue and Taxation Code shall be $103, and
the filing enforcement cost recovery fee for purposes of subparagraph

(A) of paragraph (2) of that subdivision shall be $71.

3. During the 1998-99 fiscal year, the collection cost recovery fee
for
purposes of subparagraph (B) of paragraph (1) of subdivision (a) of
Section 19254 of the Revenue and Taxation Code shall be $147, and
the filing enforcement cost recovery fee for purposes of subparagraph

(B) of paragraph (2) of that subdivision shall be $82.

4. Prior to awarding any contract for development of an Integrated
Nonfiler Tax Compliance System, the Franchise Tax Board shall
submit a feasibility study report for review and approval by the
Department of Information Technology and the Department of
Finance. No contract shall be awarded any sooner than 30 days after
the notification of that approval of the feasibility study report is
provided to the Joint Legislative Budget Committee by the Department
of Finance.

1730-001-0042--For support of Franchise Tax Board, for payment to
Item 1730-001-0001, payable from the State Highway Account, State
Transportation Fund  . . . 2,000

1730-001-0044--For support of Franchise Tax Board, for payment to
Item 1730-001-0001, payable from the Motor Vehicle Account, State
Transportation  Fund  . . . 2,792,000

1730-001-0064--For support of Franchise Tax Board, for payment to
Item 1730-001-0001, payable from the Motor Vehicle License Fee
Account, Transportation Tax Fund  . . . 5,133,000

1730-001-0200--For support of Franchise Tax Board, for payment to
Item 1730-001-0001, payable from the Rare Fish, Wildlife, and Plant
Species Conservation and Enhancement Account, Fish and Game
Preservation Fund  . . . 13,000

1730-001-0242--For support of Franchise Tax Board, for payment to
Item 1730-001-0001, payable from the Court Collection Account  . .
. 815,000

1730-001-0803--For support of Franchise Tax Board, for payment to
Item 1730-001-0001, payable from the State Children's Trust Fund  .
. . 11,000

1730-001-0823--For support of Franchise Tax Board, for payment to
Item 1730-001-0001, payable from the California Alzheimer's Disease
and Related Disorders Research Fund  . . . 11,000

1730-001-0875--For support of Franchise Tax Board, for payment to
Item 1730-001-0001, payable from the California Military Museum
Fund  . . . 6,000

1730-001-0876--For support of Franchise Tax Board, for payment to
Item 1730-001-0001, payable from the California (D.A.R.E.) Drug
Abuse Resistance Education Fund  . . . 6,000

1730-001-0886--For support of Franchise Tax Board, for payment to
Item 1730-001-0001, payable from the California Seniors Special
Fund  . . . 4,000

1730-001-0905--For support of Franchise Tax Board, for payment to
Item 1730-001-0001, payable from the California Election Campaign
Fund  . . . 5,000

1730-001-0945--For support of Franchise Tax Board, for payment to
Item 1730-001-0001, payable from the California Breast Cancer
Research Fund  . . . 7,000

1730-001-0975--For support of Franchise Tax Board, for payment to
Item 1730-001-0001, payable from the Public Schools Library
Protection Fund  . . . 11,000

1730-001-0979--For support of Franchise Tax Board, for payment to
Item 1730-001-0001, payable from the Firefighters' Memorial Fund
. . . 7,000

1730-001-0983--For support of Franchise Tax Board, for payment to
Item 1730-001-0001, payable from the California Seniors Fund  . . .
7,000

1730-002-0001--For support of the Franchise Tax Board for rental
payments on lease revenue bonds.  . . . 5,816,000

(a) Central Office--Building 1 and 2  . . . 5,726,000

(b) Insurance  . . . 90,000

1730-295-0001--For local assistance, Franchise Tax Board, for
reimbursement, in accordance with the provisions of Section 6 of
Article XIII B of the California Constitution or of Section 17561 of
the
Government Code, of the costs of any new program or increased level
of service of an existing program mandated by statute or executive
order, State Controller  . . . 3,600,000

Schedule:

(1) 98.01.149.084--Business Tax Reporting Requirements (Ch. 1490,
Stats. 1984)  . . . 3,600,000

(2) 98.01.023.874--Substandard Housing (Ch. 238, Stats. 1974)  . . .

0

Provisions:

1. Pursuant to Section 17581 of the Government Code, mandates
identified in the appropriation schedule of this item with an
appropriation of $0 and included in the language of this provision
are
specifically identified by the Legislature for suspension during the
1998-99 fiscal year:

(b) Substandard Housing (Ch. 238, Stats. 1974). 

1730-301-0001--For capital outlay, Franchise Tax Board  . . .
1,089,000  

1730-301-0001--For capital outlay, Franchise Tax Board  . . .
1,089,000

Schedule:

 (1) 90.00.010-Major Projects, Sacramento Central Office
Security Improvements  --Preliminary plans, working drawings,
and construction    . . . 1,089,000

1760-001-0001--For support of Department of General Services, for
payment to Item 1760-001-0666  . . .  7,509,000 
 9,025,000 

Provisions:

1. In addition to the funds appropriated by this item, any amounts
received from the sale of the Governor's Budget and related
publications funded from this item are available for expenditure.

1760-001-0002--For support of Department of General Services, for
payment to Item 1760-001-0666, payable from the Property
Acquisition Law Account, General Fund  . . . 2,517,000

1760-001-0003--For support of Department of General Services, for
payment to Item 1760-001-0666, payable from Motor Vehicle Parking
Facilities Moneys Account, General Fund  . . . 4,652,000

1760-001-0006--For support of Department of General Services, for
payment to Item 1760-001-0666, payable from the Access for
Handicapped Account, General Fund  . . .  1,821,000 

 1,807,000 

1760-001-0022--For support of Department of General Services, for
payment to Item 1760-001-0666, payable from the State Emergency
Telephone Number Account, General Fund  . . . 1,245,000

1760-001-0026--For support of Department of General Services, for
payment to Item 1760-001-0666, payable from the State Motor
Vehicle Insurance Account, General Fund  . . . 3,787,000

Provisions:

1. Notwithstanding any other provision of law, Section 16379 of the
Government Code shall govern the payment of claims for the purposes
of this item.

1760-001-0344--For support of Department of General Services, for
payment to Item 1760-001-0666, payable from the State School
Building Lease-Purchase Fund  . . . 9,562,000

Provisions:

1. Notwithstanding Item 9840-001-0494, the Director of Finance may
authorize the creation of deficiencies pursuant to Section 11006 of
the
Government Code for the purposes of this item.

1760-001-0450--For support of Department of General Services, for
payment to Item 1760-001-0666, payable from the Seismic Gas Valve
Certification  Fund  . . . 77,000

1760-001-0465--For support of Department of General Services, for
payment to Item 1760-001-0666, payable from the Energy Resources
Programs Account, General Fund  . . . 1,301,000

1760-001-0602--For support of Department of General Services, for
payment to Item 1760-001-0666, payable from the Architecture
Revolving Fund  . . . 20,298,000

1760-001-0666--For support of Department of General Services,
payable from the Service Revolving  Fund  . . .  362,989,000

 362,847,000 

Schedule:

(a) Program support  . . .  468,123,000 
 469,483,000 

(b) Distributed services  . . . -14,406,000

(c) Amount payable from the General Fund (Item 1760-001-0001)  .
. .  -7,509,000 
 -9,025,000 

(d) Amount payable from the General Fund (Item 1760-011-0001)  .
. . -4,836,000

(e) Amount payable from the Property Acquisition Law Account,
General Fund (Item 1760-001-0002)  . . . -2,517,000

(f) Amount payable from the Motor Vehicle Parking Facilities Moneys
Account, General Fund (Item 1760-001-0003)  . . . -4,652,000

(g) Amount payable from the Access for Handicapped Account,
General Fund (Item 1760-001-0006)  . . .  -1,821,000

 -1,807,000 

(h) Amount payable from the State Emergency Telephone Number
Account, General Fund (Item 1760-001-0022)  . . . -1,245,000

(i) Amount payable from the State Motor Vehicle Insurance Account,
General Fund (Item 1760-001-0026)  . . . -3,787,000

(j) Amount payable from the State School Building Lease-Purchase
Fund (Item 1760-001-0344)  . . . -9,562,000

(k) Amount payable from the Seismic Gas Valve Certification Fund
(Item 1760-001-0450)  . . . -77,000

(l) Amount payable from the Energy Resources Programs Account,
General Fund (Item 1760-001-0465)  . . . -1,301,000

(m) Amount payable from the Architecture Revolving Fund (Item
1760-001-0602)  . . . -20,298,000

(n) Amount payable from the New Prison Construction Fund (Item
1760-001-0723)   . . . -379,000

(o) Amount payable from the Prison Construction Fund, 1986 (Item
1760-001-0746)   . . . -1,821,000

(p) Amount payable from the Prison Construction Fund, 1988 (Item
1760-001-0747)  . . . -841,000

(q) Amount payable from the 1990 Prison Construction Fund (Item
1760-001-0751)  . . . -1,017,000

(r) Amount payable from the Earthquake Safety and Public Buildings
Rehabilitation Fund of 1990 (Item 1760-001-0768)  . . . -723,000

(s) Amount payable from the State School Deferred Maintenance Fund
(Item 1760-001-0961)  . . . -137,000

(t) Amount payable from the Service Revolving Fund (Item
1760-002-0666)  . . . -25,528,000

(u) Amount payable from Property Acquisition Law Account, General
Fund (Item 1760-015-0002)  . . . -1,575,000

(v) Amount payable from the Motor Vehicle Parking Facilities Money
Account, General Fund (Item 1760-002-0003)  . . . -1,102,000

Provisions:

1. The Department of General Services is authorized to collect rent
from the tenants of the buildings at 1020 N Street and 1021 O Street
in Sacramento. These rents shall be deposited in the Service
Revolving
Fund and shall be available for maintenance and operation of the
buildings by the Building and Property Management Branch.

2. Notwithstanding any other provision of law, revenues from the sale

of legislative bills and publications received by the Bill Room shall
be
deposited in the Service Revolving Fund.

3. Notwithstanding any other provision of law, if the Director of the

Department of General Services determines in writing that there is
insufficient cash in a special fund under his or her authority to
make
one or more payments currently due and payable, he or she may order
the transfer of moneys to that special fund in the amount necessary
to
make payment or payments, as a loan from the Service Revolving
Fund. That loan shall be subject to all of the following conditions:


(a) No loan shall be made that would interfere with the carrying out
of
the object for which the Service Revolving Fund was created.

(b) The loan shall be repaid as soon as there is sufficient money in
the
recipient fund to repay the amount loaned, but no later than 18
months
after the date of the loan, except that the loan to the Motor Vehicle

Parking Fund shall be repaid no later than five years after the date
of
the loan. The Department of General Services may impose a parking
rate increase as necessary for the repayment of the loan only if the
increase is approved by a memorandum of understanding entered into
by each collective bargaining unit that represents state employees to
be
affected by the increase, and the memorandum of understanding is
ratified by statute. Any parking rate increase imposed pursuant to
this
provision shall apply equally to state employees who are affected by
the increase whether or not they are represented by a collective
bargaining unit. The amount loaned shall not exceed the amount that
the fund or program is authorized at the time of the loan to expend
during the 1998-99 fiscal year from the recipient fund except as
otherwise provided in Provisions 5 and 6 of this item.

(c) The terms and conditions of the loan are approved, prior to the
transfer of funds, by the Department of Finance pursuant to
appropriate fiscal standards.

4. Notwithstanding any other provision of law, the Director of the
Department of General Services may authorize a loan from the Service
Revolving Fund to the Public School Planning, Design and
Construction Review Revolving Fund for the purpose of meeting the
cash needs of the Structural Safety and Fire and Life Safety Sections

in the Division of the State Architect. The loan shall not exceed
$4,000,000. As a condition of the loan, the Division of the State
Architect shall reduce its school plan review and inspection staff to
a
level commensurate with expected workload, and shall maintain that
staffing level. This loan shall be repaid as soon as there is
sufficient
money in the recipient fund to repay the amount loaned, but no later
than June 30, 2001. No loan shall be made that would interfere with
the carrying out of the objectives for which the Service Revolving
Fund was created.

5. Notwithstanding Item 9840-001-0988, Item 9840-001-0494, and
Section 27.00 of this act, the Director of General Services may
augment this item or any of Items 1760-001-0002, 1760-001-0003,
1760-001-0006, 1760-001-0026, and 1760-001-0602, by up to an
aggregate of 10 percent in cases where (a) the Legislature has
approved funds for a customer for the purchase of services or
equipment through the Department of General Services (DGS) and the
corresponding expenditure authority has not been provided in this
item
or (b) a local government entity or the federal government has
requested services from the DGS. Any augmentation that is deemed
to be necessary on a permanent basis shall be identified in the
Governor's Budget for the subsequent fiscal year. If the Director of
the
Department of General Services augments this item or Item
1760-001-0002, 1760-001-0003, 1760-001-0006, 1760-001-0026, or
1760-001-0602 the DGS shall notify the Department of Finance within
30 days after that augmentation is made as to the amount,
justification,
and the program augmented. Any augmentation made in accordance
with this provision shall not result in an increase in any rate
charged
to other departments for services or the purchase of goods without
the
prior written consent of the Department of Finance.

6. Notwithstanding Item 9840-001-0988, Item 9840-001-0494, and
Section 27.00 of this act, if this item or Item 1760-001-0002,
1760-001-0003, 1760-001-0006, 1760-001-0026, or 1760-001-0602,
is augmented pursuant to Provision 5 by the maximum allowed under
that provision, the Director of Finance may further augment the item
or items in cases where (a) the Legislature has approved funds for a
customer for the purchase of services or equipment through the DGS
and the corresponding expenditure authority has not been provided in
these items, or (b) a local government entity or the federal
government
has requested services from the DGS. Any augmentation that is
deemed to be necessary on a permanent basis shall be identified in
the
Governor's Budget for the subsequent fiscal year.

7. Notwithstanding Item 9840-001-0988, Item 9840-001-0494, and
Section 27.00 of this act, the Director of General Services may
augment this item and Items 1760-001-0026 and Item 1760-001-0003
to increase authorized expenditures by the Office of State Printing,
the
Office of Information Services, the Office of Risk and Insurance
Management, the Office of Fleet Administration, the Energy
Assessments Section of the Professional Services Branch, and the
Telecommunications Division's Public Safety Radio Services Section.
The augmentation shall be for the specific purpose of enabling the
Office of State Printing, the Office of Risk and Insurance
Management, the Office of Information Services, the Office of Fleet
Administration, the Energy Assessments Section of the Professional
Services Branch, and the Telecommunications Division's Public Safety
Radio Services Section to provide competitive services to their
customers (including local government entitles or the federal
government) and may be made only if the office has sufficient
operating reserves available to fund the augmentation. If the
Director
of General Services augments either of the items in this provision,
the
DGS shall notify the Department of Finance within 30 days after that
augmentation is made as to the amount, justification, and the office
augmented. Any augmentation that is necessary on a permanent basis
shall be identified in the Governor's Budget for the subsequent
fiscal
year.

8. Any augmentation made pursuant to Provision 5, 6, or 7 of this
item
shall be reported in writing to the chairpersons of the fiscal
committees
of each house and the Chairperson of the Joint Legislative Budget
Committee within 30 days of the date the augmentation is approved.
This notification shall identify the amount of, and justification
for, the
augmentation, and the program that has been augmented.

9. Notwithstanding any other provision of law, the Director of
General
Services or his or her designee, in lieu of the Director of Finance,
is
authorized to carry out the provisions of Section 26.00 of this act
as it
pertains to category transfers.

10. Notwithstanding any other provision of law, the Director of
General Services or his or her designee, in lieu of the Director of
Finance, is authorized to approve Budget Revision, Standard Form 26.


11. Notwithstanding any other provision of law, the Director of
General Services or his or her designee, in lieu of the Director of
Finance, is authorized to carry out Section 31.00 of this act as it
pertains to the positions funded by this act and is not required to
notify
the Chairperson of the Joint Legislative Budget Committee regarding
any position authorizations, blanket transfers, or reclassification
of
positions. 

12. Notwithstanding any other provision of law, commencing July 1,
1998, in addition to the annual report of the Department of General
Services on small business participation in public contracting,
required
in accordance with Section 14840 of the Government Code, the
department shall also include the following data:

(a) Statistical data regarding ethnicity and gender of small business

bidders participating in public contracting and procurement,
including
dollar values of contract awards, for the following categories of
contracts:

(1) Construction.

(2) Purchases of materials, supplies, and equipment.

(3) Professional services.

(4) All contracts with a dollar amount of less than $25,000. 

1760-001-0723--For support of Department of General Services, for
payment to Item 1760-001-0666, payable from the New Prison
Construction Fund  . . . 379,000

1760-001-0746--For support of Department of General Services, for
payment to Item 1760-001-0666, payable from the Prison Construction
Fund, 1986  . . . 1,821,000

1760-001-0747--For support of Department of General Services, for
payment to Item 1760-001-0666, payable from the Prison Construction
Fund, 1988  . . . 841,000

1760-001-0751--For support of Department of General Services, for
payment to Item 1760-001-0666, payable from the 1990 Prison
Construction Fund  . . . 1,017,000

1760-001-0768--For support of Department of General Services, for
payment to Item 1760-001-0666, payable from the Earthquake Safety
and Public Buildings Rehabilitation Fund of 1990  . . . 723,000

1760-001-0961--For support of Department of General Services for
payment to Item 1760-001-0666, payable from the State School
Deferred Maintenance Fund  . . . 137,000

1760-002-0003--For support of Department of General Services, for
rental payments on lease revenue bonds for payment to Item
1760-001-0666, payable from the Motor Vehicle Parking Facilities
Moneys Account, General Fund  . . . 1,102,000

Provisions:

1. The funds appropriated in this item are for the following:

(a) Base Rental and Fees  . . . 1,097,000

(b) Insurance  . . . 5,000

1760-002-0666--For support of Department of General Services, for
rental payments on lease revenue bonds, for payment to Item
1760-001-0666, payable from the Service Revolving Fund  . . .
25,528,000

Provisions:

1. The funds appropriated in this item are for the following:

(a) Base rental and fees  . . .  25,605,000 
 25,479,000 

(b) Insurance  . . .  280,000 
 473,000 

(c) Reimbursements  . . .  -357,000 
 -424,000 

1760-011-0001--For support of Department of General Services, for
payment to Item 1760-001-0666  . . . 4,836,000

Provisions:

1. The funds appropriated in this item are for the following:

(a) Asbestos Abatement  . . . 1,638,000

(b) PCB Program  . . . 237,000

(c) Underground Storage Tank Program  . . . 2,961,000

2. The funds appropriated by this item may also be used for purposes
related to the remediation of toxic sites for which the state is
responsible, provided that proposals to transfer funds between these
programs or for such other purposes shall be submitted in accordance
with Section 26.00 of this act. These proposals shall detail the
reasons
for the transfer and the impact on the programs for which the
transfer
is proposed.

3. The unencumbered balance of any funds transferred from this item
into the Architecture Revolving Fund will be reverted at the close of

the fiscal year.

1760-015-0002--For support of Department of General Services, for
payment to Item 1760-001-0666, payable from the Property
Acquisition Law Account, General Fund  . . . 1,575,000

Provisions:

1. The funds appropriated by this item are for strategic assessments
of
properties that have been identified in the State Surplus Property
Inventory, in the dollar amounts indicated as follows:

(a) State Department of Developmental Services

  (1) Agnews Developmental Center  . . . 1,000,000

  (2) Sonoma Developmental Center  . . . 100,000

   (4)  

  (3)   Fairview Developmental Center   . . . 100,000

(b) Department of General Services

   (3)

     (1)   Long Beach State Building  . . . 50,000

 (d)

  (c)   Department of Corrections

  (1) California Institution for Men--Chino  . . . 250,000

 (e)

  (d)   California Highway Patrol

  (1) Sacramento (Meadowview)   . . . 75,000

2. Funds appropriated by this item may be transferred by the
Department of General Services between and among the projects
identified in Provision 1 as necessary.

3. Funds appropriated in this item for the former California Highway
Patrol Academy in Sacramento shall be available only if the property
is not acquired by the City of Sacramento.

 1760-101-0001--For local assistance, Department of General
Services  . . . 2,200,000

Schedule:

(1) Marin County Civic Center  . . . 2,000,000

(2) Butte County 911 Dispatch Center for the Americans with
Disabilities Act (ADA) and equipment upgrades  . . . 200,000 

1760-101-0022--For local assistance, Department of General Services,
for reimbursement of local agencies and service suppliers or
communications equipment companies for costs incurred pursuant to
Sections 41137, 41137.1, 41138, and 41140 of the Revenue and
Taxation Code, payable from the State Emergency Telephone Number
Account, General Fund  . . . 79,018,000

1760-101-0768--For local assistance, Department of General Services,
payable from the Earthquake Safety and Public Buildings
Rehabilitation Fund of 1990  . . . 2,526,371

Schedule:

(1)  San    4225-San   Leandro, Alameda:
Fire
Station
3  . . . 116,810

(2)  San    4224-San   Leandro, Alameda:
Fire
Station
2  . . . 110,858

(3)  Culver    4204-Culver   City, Los
Angeles:
Culver City Fire Station Retrofit  . . . 162,020

(4)  Grover    4203-Grover   Beach, San
Bernardino:
Grover Beach Police Facility  . . . 259,775

(5)  Citrus    4193-Citrus   Heights,
Sacramento:
Citrus Heights Fire Station
23  . . . 40,088

(6)  Los    4160-Los   Altos, Santa Clara:
Sequoia
Fire Station  . . . 213,654

(7)  Bolinas,    4127-Bolinas,   Marin:
Bolinas Fire
Station  . . . 37,851

(8)  San    4073-San   Ramon, Contra Costa:

Dougherty Fire Station  . . . 161,555

(9)  Danville,    4072-Danville,   Contra
Costa: Fire
Station
35  . . . 73,196

(10)  San    4071-San   Ramon, Contra
Costa: Fire
Station
34  . . . 49,153

(11)  Orinda,    4043-Orinda,   Contra
Costa: Orinda
Fire Station
43  . . . 62,811

(12)  Orinda,    4042-Orinda,   Contra
Costa: Fire
Station
44  . . . 57,671

(13)  Oakland,    4029-Oakland,   Alameda:
Oakland
Police Administration Retrofit  . . . 500,000

(14)  Oakland,    4028-Oakland,   Alameda:
Fire
Station
27  . . . 60,519

(15)  Oakland,    4027-Oakland,   Alameda:
Fire
Station
19  . . . 70,080

(16)  Oakland,    4026-Oakland,   Alameda:
Fire
Station
16  . . . 64,860

(17)  Oakland,    4025-Oakland,   Alameda:
Fire
Station
6  . . . 74,355

(18)  Oakland,    4024-Oakland,   Alameda:
Fire
Station
23  . . . 106,257

(19)  Oakland,    4022-Oakland,   Alameda:
Fire
Station
21  . . . 131,880

(20)  Oakland,    4020-Oakland,   Alameda:
Fire
Station
14  . . . 172,978

1760-301-0001--For Capital Outlay, Department of General Services
. . . 9,550,000

Schedule:

(1) 50.10.052-Property Contiguous to Franchise Tax
Board--Acquisition  . . . 7,000,000

(2) 50.10.140-Food & Agriculture Building Renovation, 1220 N
Street, Sacramento--Preliminary plans and working drawings  . . .
1,450,000

(3) 50.10.141-Purchase Employment Development Department
Sacramento Warehouse Facility  . . . 1,100,000

Provisions:

1. The Director of the Department of General Services is hereby
authorized to purchase the warehouse facility operated by the
Employment Development Department located at 805 R Street in
Sacramento. This authority is consistent with the Capitol Area Plan
as
approved by the Legislature.

2. The funds appropriated in Schedule (1) for the acquisition of
property contiguous to the Franchise Tax Board are contingent upon
enactment of legislation that will amend the provisions of Chapter
1152 of the Statutes of 1996.

3. If planning for a project included in the Sacramento Regional
Facilities Plan is not undertaken in three years, the Director of
General
Services shall seek authorization to surplus and dispose of the
property
in Schedule (1), including properties located in Sacramento County of

approximately 2.5 acres near the northwest corner of the intersection

of Folsom Boulevard and Mayhew Road and of approximately 29
acres near the northeast corner of Folsom Boulevard and Butterfield
Road, or any portion determined to be excess, pursuant to Section
11011 of the Government Code.

1760-301-0002--For capital outlay, Department of General Services,
payable from the Property Acquisition Law Account  . . . 309,000

Schedule:

(1) 50.50.001-Hazardous Materials Abatement, 107 South Broadway,
Los Angeles--preliminary plans and working drawings  . . . 309,000

Provisions:

1. In the event there are insufficient funds in the Property
Acquisition
Law Account, the Department of Finance may authorize expenditures
for this project from the General Fund.

1760-301-0768--For capital outlay, Department of General Services,
payable from the Earthquake Safety and Public Buildings
Rehabilitation Fund of 1990  . . .  62,656,000 
 64,645,000 

Schedule:

(1) 50.99.029--Program management  . . . 723,000

(1.2) 50.99.030--DSA 3-Employment Development Department, 800
Capitol Mall Structural Retrofit--Construction  . . . 9,811,000

(2) 50.99.031--DSA 48-Department of General Services, Legislative
Office Building Annex Demolition--Construction  . . . 2,004,000

(3) 50.99.026--Building Risk Assessments  . . . 250,000

(3.5) 50.99.033--DSA  4339-Depart-   
4337-Depart-
 ment of Corrections, Tehachapi  Kitchen/Laundry
 
G-Educational and Vocational   Structural Retrofit--Construction

. . . 763,000

(4) 50.99.034--DSA 421301, 02-Department of Corrections, San
Quentin, South Block: Structural Retrofit-Construction  . . .
8,540,000

(5) 50.99.035--DSA 421501, 02-Department of Corrections, San
Quentin, West Block: Structural Retrofit-Construction  . . .
5,332,000

(5.5) 50.99.036--DSA  4337-Depart-   
4339-Depart-
 ment of Corrections, Tehachapi  Educational &
Vocational
  J-Kitchen/Laundry:   Structural
Retrofit--Construction
. . . 674,000

(7) 50.99.051--DSA 4211-Department of Corrections, San Quentin,
Neumiller Infirmary: Structural Retrofit--Working drawings and
construction  . . . 6,283,000

(8) 50.99.052--DSA 4152-Department of Corrections, San Quentin,
North Block: Structural Retrofit--Working drawings and construction
. . . 4,035,000

(9) 50.99.053--DSA 3275, 3276 and 3277-Department of
Developmental Services, Fairview, Wards D1516, E3014, F1112:
Structural Retrofit--Working drawings and construction  . . .

2,711,000 
 4,369,000 

(10) 50.99.056--DSA 11169-Department of the Military, Sacramento
Meadowview Armory: Structural Retrofit--Working drawings and
construction  . . . 1,421,000

(11) 50.99.057--DSA 4406-Department of Corrections, Folsom,
Officers and Guards: Structural Retrofit-Working drawings and
construction  . . . 4,462,000

(12) 50.99.058--DSA 347601-04-Department of Developmental
Services, Sonoma, Media Center, Gym, Adult Education School:
Structural Retrofit--Working drawings and construction  . . .
1,028,000

(13) 50.99.059--DSA  872, 880    872   and
876-Department of Corrections, DVI Tracy, Wings  L, W

 L   & R: Structural Retrofit--Working drawings and
construction  . . . 1,675,000

(14) 50.99.061--DSA 10788, 10795 and 10819-Department of
Corrections, Soledad, North Facility Gym/Dining/Kitchen, VS-1 and
Wing V Ed: Structural Retrofit--Working drawings and construction
. . . 2,320,000

(15) 50.99.062--DSA 11178-Department of the Military, Ventura
Armory: Structural Retrofit--Working drawings and construction  . .
. 1,932,000

(17) 50.99.065--DSA 3963-Department of Mental Health, Napa,
McGrath School: Structural Retrofit--Working drawings and
construction  . . .  639,000 
 970,000 

(18) 50.99.069--DSA 4348-Department of Corrections, Tehachapi,
Van Weston Hall: Structural Retrofit--Working drawings and
construction  . . . 1,595,000

(19) 50.99.071--DSA 3551-Department of Veterans Affairs,
Yountville, Theater/Dining: Structural Retrofit--Working drawings and

construction  . . . 2,092,000

(20) 50.99.072--DSA 406201-05-Department of Corrections, Chino,
Central Guidance Center A: Structural Retrofit--Working drawings
and construction  . . . 3,766,000

(22) 50.99.047--Statewide Advance-- Preliminary plans  . . . 600,000

Provisions:

1. The funds appropriated in Schedule (3) for Building Risk
Assessments shall be used for risk assessments of those state
buildings
that, based on previous analyses, could be risk level V, VI, or VII,
as
defined by the Real Estate Services Division. If, as a result of
these
assessments, a building is determined to be a risk level V, VI, or
VII,
     the Real Estate Services Division may use the funds appropriated
in
that schedule to develop proposed retrofit solutions and cost
estimates.

2. The funds appropriated in Schedule (22) shall be available for
expenditure after the department has completed the building risk
assessments pursuant to Provision 1 of this item and has reported its

findings to the Chairperson of the Joint Legislative Budget Committee

and the chair of the fiscal committee in each house that considers
appropriations. These funds shall be used to develop preliminary
plans
and associated cost estimates for projects identified by the
department
as the highest priority risk level V, VI, or VII buildings for which
funds have not been previously appropriated, and for which funds
from the Earthquake Safety and Public Buildings Rehabilitation Fund
of 1990 will be available to complete the working drawings and
construction phases of the projects.

3. The Department of General Services shall make every effort to
ensure that, to the extent that the structural retrofit of the 800
Capitol
Mall building increases the value of the building, the state will
retain
100 percent equity in the increased value.

 1760-301-0942--For capital outlay, Department of General
Services, payable from the New Governor's Mansion Account, Special
Deposit Account  . . . 2,945,000

Schedule:

(a) 50.10.155-New Governor's Mansion  . . . 2,945,000

Provisions:

1. Funds appropriated by this item shall be available on or after
January 15, 1999, for acquisition of a site and development and
construction of a Governor's Official Residence within the distance
of
four miles from the Capitol building pursuant to subdivision (c) of
Section 8174 of the Government Code. 

1760-302-0768--For capital outlay, Department of General Services,
payable from the Earthquake Safety and Public Buildings
Rehabilitation Fund of 1990  . . . 7,067,000

Schedule:

(1) 50.99.038-DSA
24, DGS Santa Ana Office Bldg. Structural Retrofit--Construction  .
. . 10,949,000

(2) Reimbursements  . . . -3,882,000

Provisions:

1. If any augmentations are required to complete the projects
scheduled under this item, the Department of General Services shall
seek the maximum allowable reimbursements for these augmentations.

1760-401--In the event the bonds authorized for the Capital Area Plan

project in Chapter 761, Statutes 97 are not sold, the Department of
General Services shall commit a sufficient portion of its support
appropriation, as determined by the Department of Finance, which is
provided for in this Budget Act to repay any interim financing. It is
the
intent of the Legislature that this commitment shall be included in
future Budget Acts until all interim financing is repaid either
through
the proceeds from the sale of bonds or from an appropriation.

1760-491--Reappropriation, Department of General Services.
Notwithstanding any other provision of law, the  unencumbered

 balance, as of June 30, 1998, of the funds made available
pursuant to Item 1760-101-768 of Section 2.00 of the Budget Act of
1994 (Ch. 139, Stats. 1994) is reappropriated for the projects in the

following schedule, listed in descending order of priority, and shall
be
available for expenditure through June 30, 1999.

Schedule:

(1) 3011-Redwood City, San Mateo: Old Courthouse  . . . 418,873

(2) 3033-Hayward, Alameda: Highlands Reservoir Emergency
Generator  . . . 31,000

(3) 3036-Hayward, Alameda: EOC & Corp. Yard Emergency
Generator  . . . 14,100

(4) 3088-Big Bear Lake, San Bernardino: Headquarters Fire Station
. . . 280,160

(5) 3089-Big Bear Lake, San Bernardino: Emergency Power Generator
Replacement  . . . 58,271

(6) 3116-Richmond, Contra Costa: City Hall  . . . 1,149,975

(7) 3117-Richmond, Contra Costa: Hall of Justice  . . . 1,183,613

(8) 3151-Milpitas, Santa Clara: Fire Station
1  . . . 148,110

(9) 3164-Berkeley, Alameda: Equipment Maintenance Building at
Corp. Yard  . . . 618,157

(10) 3175-Sonoma, Sonoma: Schell-Vista Fire Station  . . . 479,029

(11) 3193-Berkeley, Alameda: Fire Department Headquarters  . . .
3,356,885

(12) 3292-Torrance, Los Angeles: Harbor UCLA Medical Center  . .
. 1,800,000

(13) 4002-Azusa, Los Angeles: Police Facility ECC/EOC  . . . 500,000

(14) 4005-Carmel, Monterey: Fire Station/EOC  . . . 335,768

(15) 4008-Grover Beach, San Luis Obispo: Fire Facility  . . . 279,418


(16) 4012-Los Altos, Santa Clara: Loyola Fire Station  . . . 167,039

(17) 4013-Oakland, Alameda: Fire Station
1  . . . 151,592

(18) 4018-Oakland, Alameda: Fire Station
8  . . . 184,010

(19) 4019-Oakland, Alameda: Fire Station
10  . . . 175,196

(20) 4021-Oakland, Alameda: Fire Station
12  . . . 140,851

(21) 4023-Oakland, Alameda: Fire Station
17  . . . 157,103

(22) 4036-Placentia, Orange: Station
34  . . . 114,164

(23) 4037-Placentia, Orange: Station
35  . . . 64,088

(24) 4044-Rancho Santa Fe, San Diego: Fire Station
1  . . . 500,000

(25) 4113-Tiburon, Marin: Police Station/EOC  . . . 166,808

(26) 4114-Tiburon, Marin: Fire Station
10  . . . 42,354

(27) 4159-Corte Madera, Marin: Fire Station
13  . . . 118,500

(28) 4162-Oxnard, Ventura: ECC/Public Safety Bldg.  . . . 489,745

(29) 4165-Camarillo, Ventura: Fire Comm. Center, Bldg.
2  . . . 175,725

(30) 4179-Port Hueneme, Ventura: Fire Station
53, Seismic Retrofit  . . . 336,600

(31) 4180-Camarillo, Ventura: Fire Comm. Center, Bldg.
1  . . . 60,162

(32) 4192-Stinson Beach, Marin: Fire Station
1/ECC  . . . 66,461

(33) 4194-Orinda, Contra Costa: Fire Station
45  . . . 186,973

1760-493--Reappropriation, for capital outlay, Department of General
Services. The balance of the appropriation provided in the following
citation is reappropriated for the purposes provided for in that
appropriation, and shall be available for encumbrance and expenditure

until June 30, 1999. 

0768--Earthquake Safety and Public Buildings Rehabilitation Fund of
1990 

(1) Item 1760-301-0768, Schedule (14), Budget Act of 1995, as
reappropriated by Item 1760-492, Budget Act of 1997,
50.99.014--DSA 22-Department of General Services, Los Angeles
Junipero Serra State Office Building: Relocation of Public Safety and

Emergency Communications Microwave Center--Construction.

1760-494--Reversion, Department of General Services. As of June 30,
1998, the unencumbered balances of the appropriations provided in the

following citations shall revert to the Earthquake Safety and Public
Building Rehabilitation Fund. 

0768--Earthquake Safety and Public Buildings Rehabilitation Fund of
1990 

(1) 1760-301-0768--Schedule (4.5) Budget Act of 1997,
50.99.030--DSA 3-EDD, 800 Capitol Mall Building: Structural
Retrofit--Construction

(2) 1760-302-0768-Schedule (2) Budget Act of 1997, 50.99.038--DSA
24-DGS, Santa Ana Office Building: Structural Retrofit--Construction.


1760-495--Reversion, Department of General Services. As of June 30,
1998, the unencumbered balances of the appropriations provided in the

following citations shall revert to the Earthquake Safety and Public
Building Rehabilitation Fund. 

0768--Earthquake Safety and Public Building Rehabilitation Fund of
1990 

(1) Item 1760-301-0768--Schedule (6) Budget Act of 1997,
50.99.033--DSA 4337-Department of Corrections, Tehachapi
Educational and Vocational: Structural Retrofit--Construction.

(2) Item 1760-301-0768-Schedule (9) Budget Act of 1997,
50.99.036--DSA 4339-Department of Corrections, Tehachapi
Kitchen/Laundry: Structural Retrofit--Construction.

1880-001-0001--For support of State Personnel Board  . . . 6,229,000

Schedule:

(a) 10-Merit System Administration  . . . 13,829,000

(b) 40-Local Government Services  . . . 1,957,000

(c) 50.01-Administrative Services  . . . 3,845,000

(d) 50.02-Distributed Administrative Services  . . . -3,261,000

(e) Reimbursements  . . . -10,141,000

1900-001-0950--For support of Board of Administration of the Public
Employees' Retirement System, payable from the Public Employees'
Contingency Reserve Fund  . . . 7,442,000

Provisions:

1. The appropriation made by this item is for support of the Board of

Administration pursuant to Section 22840 of the Government Code.

1900-003-0830--For support of the Board of Administration of the
Public Employees' Retirement System, payable from the Public
Employees' Retirement Fund  . . . (64,732,000)

Provisions:

1. The amount displayed in this item is based on the estimate by the
Public Employees' Retirement System of expenditures for external
investment advisers to be made during the 1998-99 fiscal year
pursuant to Section 20210 of the Government Code. The Board of
Administration of the Public Employees' Retirement System shall
report to the fiscal committees of the Legislature and the Joint
Legislative Budget Committee on or before January 10, 1999,
regarding any revision of this estimate, including an accounting and
explanation of changes, and the amount of, and basis for, investment
adviser expenditures proposed for the 1999-2000 fiscal year. The
Board of Administration of the Public Employees' Retirement System
shall report on or before January 10, 2000, on the final expenditures

under this item, including an accounting and explanation of changes
from estimates previously reported to the Legislature.

2. Each of the two reports described in Provision 1 also shall
include
all of the following:

(a) A summary and comparison of the externally managed portfolios,
the internally managed portfolios, and the total fund. This
information
shall include the value of the assets, the gross and net returns, the

benchmark returns, and the costs, by dollars and basis points, for
these
portfolios.

(b) A description of the actions the Public Employees' Retirement
System will take to ensure that any future expenditures for outside
advisers will result in a greater return on investments, including
costs
for these advisers, than if in-house advisers were used.

(c) Separate listings of adviser contracts in effect, and approved,
during the 1997-98 and 1998-99 fiscal years, with (1) amounts (total
contract and annual basis) for each contract for base fees and
performance-based fees, and (2) summary statements of the purposes
of each contract.

1900-015-0815--For support of Board of Administration of the Public
Employees' Retirement System, payable from the Judges' Retirement
Fund  . . . (354,000)

Provisions:

1. Notwithstanding any other provision of law, the Board of
Administration of the Public Employees' Retirement System (PERS),
in accordance with all applicable provisions of the California
Constitution, shall submit to the Controller, the Department of
Finance, the Joint Legislative Budget Committee, and the fiscal
committees of the Legislature, all of the following:

(a) No later than January 10, 1999, a copy of the proposed budget for

PERS for the 1999-2000 fiscal year as included with the Governor's
Budget.

(b) No later than May 15, 1999, a copy of the proposed budget for
PERS for the 1999-2000 fiscal year as approved by the Board of
Administration.

(c) The revisions to the proposed budget for PERS for the 1998-99
fiscal year, as recommended by the PERS Finance Committee, at least
30 days prior to the consideration of those revisions by the Board of

Administration.

(d) Commencing October 1, 1998, all expenditure and performance
workload data provided to the Board of Administration, as updated on
a quarterly basis. This quarterly update information is to be
submitted
to the Joint Legislative Budget Committee and the fiscal committees
of the Legislature, and shall be in sufficient detail to be useful
for
legislative oversight purposes and to sustain a thorough ongoing
review of Public Employees' Retirement System expenditures.

1900-015-0820--For support of Board of Administration of the Public
Employees' Retirement System, payable from the Legislators'
Retirement Fund  . . . (202,000)

Provisions:

1. Notwithstanding any other provisions of law, the Board of
Administration of the Public Employees' Retirement System, in
accordance with all applicable provisions of the California
Constitution, shall submit to the Controller, the Department of
Finance, the Joint Legislative Budget Committee, and the fiscal
committees of the Legislature all of the following:

(a) A copy of the proposed budget for the Public Employees'
Retirement System for the 1999-2000 fiscal year by January 10, 1999,
as included with the Governor's Budget.

(b) A copy of the proposed budget for the Public Employees'
Retirement System for the 1999-2000 fiscal year as approved by the
Board of Administration by May 15, 1999.

(c) The revisions to the proposed budget for the Public Employees'
Retirement System for the 1998-99 fiscal year as recommended by the
Public Employees' Retirement System Finance Committee at least 30
days prior to consideration of those revisions by the Board of
Administration.

(d) Commencing October 1, 1998, all expenditure and performance
workload data provided to the Board of Administration, updated on a
quarterly basis, shall be submitted to the Joint Legislative Budget
Committee and the fiscal committees of the Legislature. The quarterly

update information submitted to the Legislature shall be in
sufficient
detail to be useful for legislative oversight purposes and to sustain
a
thorough ongoing review of the expenditures of the Public Employees'
Retirement System.

1900-015-0830--For support of Board of Administration of the Public
Employees' Retirement System, payable from the Public Employees'
Retirement Fund  . . . (132,432,000)

Provisions:

1. Notwithstanding any other provision of law, the Board of
Administration of the Public Employees' Retirement System, in
accordance with all applicable provisions of the California
Constitution, shall submit to the Controller, the Department of
Finance, the Joint Legislative Budget Committee, and the fiscal
committees of the Legislature, all of the following:

(a) A copy of the proposed budget for the Public Employees'
Retirement System for the 1999-2000 fiscal year by January 10, 1999,
as included with the Governor's Budget.

(b) A copy of the proposed budget for the Public Employees'
Retirement System for the 1999-2000 fiscal year as approved by the
Board of Administration by May 15, 1999.

(c) The revisions to the proposed budget for the Public Employees'
Retirement System for the 1998-99 fiscal year as recommended by the
Public Employees' Retirement System Finance Committee at least 30
days prior to consideration of those revisions by the Board of
Administration.

(d) Commencing October 1, 1998, all expenditure and performance
workload data provided to the Board of Administration, updated on a
quarterly basis, shall be submitted to the Joint Legislative Budget
Committee and the fiscal committees of the Legislature. The quarterly

update information submitted to the Legislature shall be in
sufficient
detail to be useful for legislative oversight purposes and to sustain
a
thorough ongoing review of the expenditures of the Public Employees'
Retirement System.

1900-015-0962--For support of Board of Administration of the Public
Employees' Retirement System, payable from the Volunteer
Firefighters' Length of Service Award System Fund   . . . (76,000)

Provisions:

1. Notwithstanding any other provision of law, the Board of
Administration of the Public Employees' Retirement System, in
accordance with all applicable provisions of the California
Constitution, shall submit to the Controller, the Department of
Finance, the Joint Legislative Budget Committee, and the fiscal
committees of the Legislature, all of the following:

(a) A copy of the proposed budget for the Public Employees'
Retirement System for the 1999-2000 fiscal year by January 10, 1999,
as included with the Governor's Budget.

(b) A copy of the proposed budget for the Public Employees'
Retirement System for the 1999-2000 fiscal year as approved by the
Board of Administration by May 15, 1999.

(c) The revisions to the proposed budget for the Public Employees'
Retirement System for the 1998-99 fiscal year recommended by the
Public Employees' Retirement System Finance Committee, at least 30
days prior to consideration of those revisions by the Board of
Administration.

(d) Commencing October 1, 1998, all expenditure and performance
workload data provided to the Board of Administration, updated on a
quarterly basis, shall be submitted to the Joint Legislative Budget
Committee and the fiscal committees of the Legislature. The quarterly

update information submitted to the Legislature shall be in
sufficient
detail to be useful for legislative oversight purposes and to sustain
a
thorough ongoing review of the expenditures of the Public Employees'
Retirement System.

1920-001-0835--For support of State Teachers' Retirement System,
payable from the State Teachers' Retirement Fund  . . . 
44,672,000 
 44,722,000 

Schedule:

(a) 10-Services to Members and Employers  . . .  45,074,000

 45,124,000 

(b) Reimbursements  . . . -339,000

(c) Amount payable from the Supplemental Benefit Maintenance
Account in the Teachers' Retirement Fund pursuant to Section 22954
of the Education Code  . . . -63,000

Provisions:

1. This item shall not be subject to the requirements of subdivision
(b),
(c), (d), or (e) of Section 31.00 of this act. Nothing in this
provision
shall be construed as exempting this item from requirements of the
State Civil Service Act or from requirements of laws, rules, and
regulations administered by the Department of Personnel
Administration. 

2. From the funds appropriated by this item, $50,000 shall be
expended for an actuarial evaluation of the Teachers' Retirement
System as of June 30, 1998, which shall be completed on or before
April 1, 1999. 

1920-002-0835--For external investment advisers, payable from the
State Teachers' Retirement Fund  . . . (52,600,000)

Provisions:

1. The amount displayed in this item is for informational purposes
only, and is based on the current estimate by the State Teachers'
Retirement System (STRS) of expenditures for external investment
advisers to be made during the 1998-99 fiscal year pursuant to
Section
22353 of the Education Code. The STRS shall report to the fiscal
committees of the Legislature and the Joint Legislative Budget
Committee no later than January 10, 1999, regarding any revision of
this estimate, including an accounting and explanation of the
changes,
and regarding the amount of, and basis for, investment adviser
expenditures proposed for the 1999-2000 fiscal year. The STRS shall
report on or before January 10, 2000, on the final expenditures under

this item, including an accounting and explanation of changes from
estimates previously reported to the Legislature.

2. Each of the two reports described in Provision 1 also shall
include
all of the following:

(a) A summary and comparison of the externally managed portfolios,
the internally managed portfolios, and the total fund. This
information
shall include the value of the assets, the gross and net returns, the

benchmark returns, and the costs by dollars and basis points for
these
portfolios.

(b) A description of the actions the State Teachers' Retirement
System
will take to ensure that any future expenditures for outside advisers

will result in a greater return on investments, including costs for
these
advisors, than if in-house advisers were used.

(c) Separate listings of adviser contracts in effect, and approved,
during the 1997-98 and 1998-99 fiscal years, with (1) amounts (total
contract and annual basis) for each contract for base fees and
performance-based fees, (2) summary statements of the purposes of
each contract.

1920-011-0001--For transfer by the State Controller to the Teachers'
Retirement Fund from the General Fund  . . .  (730,652,000)

 (726,475,000) 

Schedule:

(a) Elder Full Funding  . . .  (646,702,000) 
 (642,525,000) 

(b) Supplemental Benefit Maintenance Account (SBMA)  . . .
(403,950,000)

(c) SBMA Expenditure Reduction--Elk Hills  . . . (-320,000,000)

Provisions:

1. The estimated amount referenced in Schedule (a) is the state's
contribution required by Section 22955 of the Education Code.

2. The estimated amount referenced in Schedule (b) is the state's
contribution required by Section 22954 of the Education Code.

3. Upon order of the Department of Finance, the State Controller
shall
reduce the State's SBMA contribution referenced in Schedule (b) by
the amount referenced in Schedule (c) pursuant to Chapter 939,
Statutes of 1997.

1920-490--Reappropriation, State Teachers' Retirement System
(STRS). Notwithstanding any other provision of law, up to $1,142,000
of the  unexpended   balance as of June 30, 1998, of
the
appropriation identified in the following citation is reappropriated,

subject to the limitations set forth in Provision 1, and shall be
available
for encumbrance and expenditure until June 30, 1999. Any amount of
this reappropriation that is not expended in 1998-99 shall be carried

over to 1999-2000 and is hereby reappropriated. In no event shall the

total amounts reappropriated for the 1999-2000 Budget exceed three
percent of STRS' 1998-99 appropriation.

835--State Teachers' Retirement Fund

(1) Item 1920-001-835, Budget Act of 1997.

Provisions:

1. The funds reappropriated in this item shall be available for
expenditure by the State Teachers' Retirement System for the purposes

of meeting unanticipated system costs and promoting better service to

the system's membership. The funds may not be encumbered without
advance approval of the State Teachers' Retirement Board. The board
shall report to the Legislature on a quarterly basis throughout the
1998-99 fiscal year on expenditures made pursuant to this item.

                              BUSINESS, TRANSPORTATION AND
HOUSING

2100-001-0081--For support of Department of Alcoholic Beverage
Control, payable from Alcohol Beverage Control Fund  . . . 
31,034,000 
 31,012,000 

Schedule:

(a) 10.10-Licensing  . . .  16,929,000 
 16,918,000 

(b) 10.20-Compliance  . . .  14,974,000 
 14,963,000 

(c) 10.30.010-Administration  . . . 2,855,000

(d) 10.30.020-Distributed Administration  . . . -2,855,000

(e) Reimbursements  . . . -869,000

2100-101-0081--For local assistance, Department of Alcoholic
Beverage Control, Program 10.20-Compliance, for grants to local law
enforcement agencies payable from Alcohol Beverage Control Fund
. . . 1,500,000

Provisions:

1. Notwithstanding any other provisions of law, the Department of
Alcoholic Beverage Control is authorized to grant funds to local law
enforcement agencies for the purpose of enhancing enforcement of
alcoholic beverage control laws in the local jurisdiction.

2. Notwithstanding any other provisions of law, at the discretion of
the
Director, Department of Alcoholic Beverage Control, the Department
may advance grant funds to local law enforcement agencies.

3. Notwithstanding any other provisions of law, at the discretion of
the
Director, Department of Alcoholic Beverage Control, title to any
authorized equipment purchased by the local law enforcement agency
pursuant to the grant may be vested in the local law enforcement
agency at the conclusion of the grant period.

2120-001-0117--For support of Alcoholic Beverage Control Appeals
Board, Program 10, payable from the Alcoholic Beverage Control
Appeals Fund  . . . 727,000

2150-001-0298--For support of the Department of Financial
Institutions, payable from the Financial Institutions Fund  . . .
15,758,000

Schedule:

(a) 10-Licensing and Supervision of Banks and Trust Companies  . .
. 14,302,000

(b)

20-Payment Instruments  . . . 515,000

(c)

30-Certification of Securities  . . . 10,000

(e)

50-Supervision of California Business and Industrial Development
Corporations  . . . 28,000

(f)

60-Credit Unions  . . . 2,248,000

(g)

70-Savings and Loan  . . . 105,000

(h)

80-Industrial Loan Companies  . . . 957,000

(i)

90.01-Administration  . . . 3,289,000

(j)

90.02-Distributed Administration  . . . -3,289,000

(k)

Reimbursements  . . . -159,000

(m)

Amount payable from the Credit Union Fund (Item 2150-001-0299)
. . . -2,248,000

2150-001-0299--For support of the Department of Financial
Institutions, for payment to Item 2150-001-0298, payable from the
Credit Union Fund  . . . 2,248,000

2180-001-0067--For support of Department of Corporations, payable
from the State Corporations Fund  . . .  36,156,000 

 36,216,000 

Schedule:

(a) 10-Investment Program  . . .  13,287,000 
 13,315,098 

(b) 20-Lender-Fiduciary Program  . . .  7,178,000 
 7,194,428 

(c) 30-Health Care Program  . . .  15,691,000 
15,706,474 

(d) 50.01-Administration  . . . 5,667,000

(e) 50.02-Distributed Administration  . . . -5,667,000

Provisions:

1. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

2. The Director of Finance may allocate funds from Item
9903-001-0494 for the purchase of data processing software,
hardware, related equipment, and services to implement a document
management system that will provide the public and staff of the
Department of Corporations immediate electronic access to the
department's mission-critical files, ensure confidential file
security,
establish file integrity, and provide full disaster recovery if at
least 30
days prior to that allocation, the director provides written notice
to the
Chairperson of the Joint Legislative Budget Committee and the
chairperson of the committee in each house of the Legislature that
considers the Budget Bill.

2240-001-0001--For support of the Department of Housing and
Community Development  . . . 4,580,000

Schedule:

(a) 10-Codes and Standards Program  . . . 20,234,000

(b) 20-Community Affairs Program  . . .  12,268,000 

 12,168,000 

(c) 30.01-Housing Policy Development Program  . . . 1,274,000

(d) 30.02-Distributed Housing Policy Development Program  . . .
                                          -122,000

(e) 50.01-Administration  . . . 8,734,000

(f) 50.02-Distributed Administration  . . . -8,734,000

(g) Reimbursements  . . . -395,000

(h) Amount payable from the Mobilehome Park Revolving Fund (Item
2240-001-0245)  . . . -3,604,000

(i) Amount payable from the Mobilehome Park Purchase Fund (Item
2240-001-0530)  . . . -586,000

(j) Amount payable from the Rural Predevelopment Loan Fund (Item
2240-001-0635)  . . . -132,000

(k) Amount payable from the Mobilehome-Manufactured Home
Revolving Fund (Item 2240-001-0648)  . . . -15,243,000

(l) Amount payable from the Self-Help Housing Fund (Item
2240-001-0813)  . . . -188,000

(m) Amount payable from the Federal Trust Fund (Item
2240-0010890)  . . . -4,897,000

(n) Amount payable from the Housing Rehabilitation Loan Fund (Item
2240-001-0929)  . . . -2,569,000

(o) Amount payable from the Rental Housing Construction Fund (Item
2240-001-0938)  . . . -898,000

(p) Amount payable from the Emergency Housing Assistance Fund
(Item 2240-001-0985)  . . .  -562,000 
 -462,000 

2240-001-0245--For support of Department of Housing and
Community Development, for payment to Item 2240-001-0001,
payable from the Mobilehome Park Revolving Fund  . . . 3,604,000

2240-001-0530--For support of Department of Housing and
Community Development, for payment to Item 2240-001-0001,
payable from the Mobilehome Park Purchase Fund  . . . 586,000

2240-001-0635--For support of the Department of Housing and
Community Development, for payment to Item 2240-001-0001,
payable from the Rural Predevelopment Loan Fund  . . . 132,000

2240-001-0648--For support of the Department of Housing and
Community Development, for payment to Item 2240-001-0001,
payable from the Mobilehome-Manufactured Home Revolving Fund
. . . 15,243,000

Provisions:

1. Notwithstanding Section 18077 of the Health and Safety Code, or
any other provision of law, the first $2,388,000 in revenues
collected
by the Department of Housing and Community Development from
manufactured home license fees shall be deposited in the
Mobilehome-Manufactured Home Revolving Fund, and shall be
available to  the department for the support, collection,
administration,
and enforcement of manufactured home license fees.

2. Notwithstanding Section 18077.5 of the Health and Safety Code, or
any other provision of law, the Department of Housing and
Community Development is not required to comply with the reporting
requirement of Section 18077.5 of the Health and Safety Code.

2240-001-0813--For support of the Department of Housing and
Community Development, for payment to Item 2240-001-0001,
payable from the Self-Help Housing Fund  . . . 188,000

2240-001-0890--For support of Department of Housing and
Community Development, for payment to Item 2240-001-0001,
payable from the Federal Trust Fund  . . . 4,897,000

2240-001-0929--For support of Department of Housing and
Community Development, for payment to Item 2240-001-0001,
payable from the Housing Rehabilitation Loan Fund  . . . 2,569,000

2240-001-0938--For support of Department of Housing and
Community Development, for payment to Item 2240-001-0001,
payable from the Rental Housing Construction Fund  . . . 898,000

2240-001-0985--For support of the Department of Housing and
Community Development, for payment to Item 2240-001-0001,
payable from the Emergency Housing Assistance Fund  . . . 
562,000 
 462,000 

2240-013-0474--For support of the Department of Housing and
Community Development, payable from the Child Care and
Development Facilities Loan Guaranty Fund  . . . 105,000

2240-014-0472--For support of the Department of Housing and
Community Development, payable from the Child Care and
Development Facilities Direct Loan Fund  . . . 105,000

2240-101-0001--For local assistance, Department of Housing and
Community Development  . . .  4,604,000 
 4,629,000 

Schedule:

(a) 20-Community Affairs  . . .  103,604,000 
 103,629,000 

(b) Amount payable from the Federal Trust Fund (Item 2240-1010890)
. . . -99,000,000

Provisions:

1. Of the amount appropriated in this item, $200,000 shall be used
for
assistance grants provided through the California Indian Assistance
Program.

2240-101-0843--For local assistance, Department of Housing and
Community Development, payable from the California Housing Trust
Fund  . . . (2,000,000)

Schedule:

(a) For transfer to the Emergency Housing Assistance Fund (0985)  .
. . (2,000,000)

2240-101-0890--For local assistance, Department of Housing and
Community Development, for payment to Item 2240-101-0001,
payable from the Federal Trust Fund  . . . 99,000,000

Provisions:

1. Notwithstanding any other provision of law, federal funds
appropriated by this act but not encumbered by June 30 may be
expended in the subsequent fiscal year.

2240-102-0001--For local assistance, Department of Housing and
Community Development, for transfer to the Special Deposit
Fund-Office of Migrant Services (0942)  . . . 9,887,000 

Provisions:

1. Of the funds appropriated by this item, $5,000,000 shall be
expended to reconstruct the first eligible migrant housing project in

Kern County. If federal funds are received during the 1998-99 fiscal
year to finance all or a portion of that first project, the remainder
of the
$5,000,000 shall be expended to finance the second eligible project
in
Kern County. If federal funds are received to finance all or a
portion
of the second eligible project, any remaining balance of the
$5,000,000
shall revert to the General Fund.

2. Notwithstanding Section 28.00 of this act or any other provision
of
law, any federal funds received by the Office of Migrant Services
during the 1998-99 fiscal year for the purposes specified in
Provision
1 of this item are hereby appropriated for those purposes. 

2240-103-0001--For local assistance, Department of Housing and
Community Development, for transfer to the Self-Help Housing Fund
(0813)  . . . 2,000,000

2240-103-0813--For local assistance, Department of Housing and
Community Development, payable from the Self-Help Housing Fund
. . . 2,928,000

Provisions:

1. The funds appropriated by this item shall be expended pursuant to
paragraph (1) of subdivision (b) of Section 50696 of the Health and
Safety Code for group mutual self-help housing for any low-income
owner-builder who contributes substantial labor to build his or her
principal residence.

2. Notwithstanding any other provision of law, funds appropriated by
this act but not encumbered by June 30, 1999 may be expended in the
1999-2000 fiscal year.

3. The Department of Housing and Community Development may use
not more than $72,000 of the amount appropriated in this item for the

cost of administering grants funded with moneys appropriated in this
item.

2240-104-0001--For local assistance, Department of Housing and
Community Development, for transfer to the Farmworker Housing
Grant Fund (0927)  . . . 6,000,000

Provisions:

1. The Department of Housing and Community Development may use
up to $350,000 of the amount appropriated in this item for
administration of the grants funded by this item.

2240-105-0001--For local assistance, Department of Housing and
Community Development, for transfer to the California Housing
Rehabilitation Loan Fund (0929)  . . . 15,000,000

Provisions:

1. The funds transferred by this item to the California Housing
Rehabilitation Loan Fund shall be used for the purposes set forth in
Section 50668.5 of the Health and Safety Code to finance multifamily
affordable housing units that receive assistance under federal
programs
specified in subdivision (a) of Section  65863.1 

65863.10   of the Government Code and that are eligible for
termination of their use as low-income housing in the next 3 years
due
to termination of subsidy contracts, mortgage prepayment, or
expiration of an affordability restriction. The Department of Housing

and Community Development may use funds appropriated by this item
to compensate local government agencies or other public or nonprofit
agencies for the cost of monitoring compliance with the regulatory
agreement required by the program. The department may waive the
requirements of Section 50668.5 of the Health and Safety Code and
any regulations adopted thereunder that are in conflict with the
provisions of this item or that are necessary for prompt and
effective
implementation of the program funded by this item.

2. The department may use up to $660,000 of the amount appropriated
by this item, but no more than $330,000 per fiscal year, for the cost
of
administering funds appropriated by this item.

2240-105-0929--For local assistance, Department of Housing and
Community Development, payable from the California Housing
Rehabilitation Loan Fund  . . . 14,670,000

Provisions:

1. The funds appropriated in this item shall be used for preservation

of at-risk housing.

2240-106-0001--For local assistance, Department of Housing and
Community Development, for transfer to the Rental Housing
Construction Fund (0938)  . . . 10,000,000

Provisions:

1. The funds appropriated by this item shall be deposited in the
Family
Housing Demonstration Account and shall be used for the purposes set
forth in Chapter 15 (commencing with Section 50880) of Part 2 of
Division 31 of the Health and Safety Code to finance construction of
community housing developments and congregate housing
developments, with child care and a job training program to assist
families with children moving from welfare to work. The housing shall

be located on a main transportation system. Sponsors shall provide
evidence that a development funded by this program is consistent with

the welfare reform plan required by Section 10531 of the Welfare and
Institutions Code. The funds shall be used to assist housing
developments serving families that qualify for benefits under the
CalWORKs program and experience the greatest difficulty moving
from welfare to work. This service-enriched program shall be
administered as a transitional program with timelines established by
the Department of Housing and Community Development.
Participating households shall receive assistance from this program
during the job training and preparation period and then shall be
assisted in locating and moving to affordable housing. The department

may waive any requirements of Chapter 15 (commencing with Section
50880) of Part 2 of Division 31 of the Health and Safety Code and any

regulations adopted thereunder that are in conflict with the
provisions
of this item or that are necessary for prompt and effective
implementation of the program described in this item.

2. The department may use up to $375,000 of the funds appropriated
by this item, but not more than $220,000 per fiscal year, for the
cost
of administering funds appropriated by this item.

2240-107-0001--For local assistance, Department of Housing and
Community Development, for transfer to the Emergency Housing
Assistance Fund (0985)  . . .  2,000,000 
 7,000,000 

Provisions:

1. The minimum amount of a grant made with funding appropriated
in this item shall be $40,000, except that no more than two grants in

an amount of less than $40,000 may be awarded in each county. 

2. Of the amount transferred to the Emergency Housing Assistance
Fund pursuant to this item, $5,000,000 shall be allocated to assist
the
construction of permanent local homeless shelters. 

2240-295-0001--For local assistance, Department of Housing and
Community Development, for reimbursement, in accordance with the
provisions of Section 6 of Article XIII B of the California
Constitution
or of Section 17561 of the Government Code, of the costs of any new
program or increased level of service of an existing program mandated

by statute or executive order, for allocation by Controller  . . .
950,000

Schedule:

(1) 98.01.114.380--Regional Housing Needs Assessments (Ch. 1143,
Stats. 1980)  . . . 950,000

2240-490--Reappropriation, Department of Housing and Community
Development. The balance of the appropriations provided in the
following citations are reappropriated for local assistance for the
purposes provided for those appropriations and shall be available for

encumbrance and expenditure as specified.

0472-Child Care and Development Facilities Direct Loan Fund:

Item 2240-014-0472, Budget Act of 1997

Year of completion: June 30, 1999

0927-Farmworker Housing Grant Fund

Item 2240-104-0927, Budget Act of 1997

Year of completion: June 30, 1999

0474-Child Care and Development Facilities Loan Guaranty Fund:

Item 2240-013-0474, Budget Act of 1997

Year of completion: June 30, 2018

2310-001-0400--For support of the Office of Real Estate Appraisers
payable from the Real Estate Appraisers Regulation Fund  . . .
3,967,000

Schedule:

(a) 10-Administration of the Real Estate Appraisers Program  . . .
4,042,000

(b) Reimbursements  . . . -75,000

2320-001-0317--For support of Department of Real Estate, payable
from the Real Estate Fund  . . .  27,741,000 
 27,609,000 

Schedule:

(a) 10-Licensing and Education  . . . 6,077,000

(b) 20-Enforcement and Recovery  . . .  17,318,000 
 17,236,054 

(c) 30-Subdivisions  . . .  5,112,000 
 5,065,721 

(d) 40.10-Administration  . . .  6,094,000 
 6,090,225 

(e) 40.20-Distributed Administration  . . . -6,110,000

(f) Reimbursements  . . . -750,000

2600-001-0042--For support of California Transportation
Commission, for payment to Item 2600-001-0046, payable from the
State Highway Account, State Transportation Fund  . . . 176,000

2600-001-0046--For support of California Transportation
Commission, payable from the Public Transportation Account, State
Transportation Fund  . . . 1,261,000

Schedule:

(a) 10-Administration of California Transportation Commission  . . .

1,437,000

(b) Amount payable from the State Highway Account, State
Transportation Fund (Item 2600-001-0042)  . . . -176,000

 2600-101-0001--For local assistance, California Transportation
Commission  . . . 2,000,000

Provisions:

1. The funds appropriated by this item shall be available for
allocation
by the California Transportation Commission to the North Coast
Railroad Authority (NCRA) pursuant to the following:

(a) The funds shall be available to provide for the immediate and
critical needs of the NCRA, including, but not limited to, the
following:

(1) Implementing an accounting system that complies with
commission requirements for receipt of state and federal funds.

(2) Addressing environmental concerns raised by the Departments of
Fish and Game, Toxic Substance Control, and Justice.

(3) Payment to contractors and vendors for services rendered prior to

June 30, 1998, excluding any contractual obligations to Railways,
Inc.

(b) Any remaining funds shall be available for additional needs of
the
NCRA, including, but not limited to, the following:

(1) Necessary actions to meet the requirements of the compliance
order of the Federal Rail Administration concerning the operation of
the railroad.

(2) Necessary capital improvements to safely operate and maintain the

rail service.

(3) Any other expenditure necessary to comply with the findings or
recommendations of the commission or any other government agency
with jurisdiction or involvement with NCRA activities.

(c) The funds appropriated by this item shall not be used as
repayment
of the so-called "Q-Fund" loan.

(d) All funds allocated pursuant to this provision shall be subject
to the
conditions contained in the other provisions of this item.

2. Within 60 days of enactment of the 1998 Budget Act, the California

Transportation Commission shall hire an independent consultant to act

as a Special Rail Master to monitor implementation of commission
recommendations for allocation of funds pursuant to this item.
Support
for the Special Rail Master shall be provided with funds appropriated

by this item. Prior to hiring the Special Rail Master, the North
Coast
Railroad Authority may submit a written request to the commission for

allocation of funds pursuant to subdivision (a) of Provision 1 of
this
item.

3. The California Transportation Commission shall report on or before

December 31, 1999, to the Chairperson of the Joint Legislative Budget

Committee and the chairpersons of the fiscal committees of the
Legislature on how the funds allocated pursuant to this item have
been
expended by the North Coast Railroad Authority (NCRA) and any
state agency that received an allocation of funds for expenditure.
Further, the report shall include recommendations by the California
Transportation Commission, if any, for additional actions by the
state
to help maintain rail freight service, passenger service, or both, on
the
rail lines currently being served by the North Coast Railroad
Authority.

4. Notwithstanding any other provision of law, an amount not to
exceed $25,000 may be transferred from this item to Item
2600-001-0046 to support costs of the California Transportation
Commission, including costs related to hiring a Special Rail Master,
to implement the provisions of this item.

5. Funds appropriated by this item shall be available for encumbrance

by the California Transportation Commission until June 30, 2000.


2640-101-0046--For local assistance, Special Transportation
Programs, notwithstanding Section 99312 of the Public Utilities Code,

for allocation by the Controller, payable from the Public
Transportation Account, State Transportation Fund  . . . 100,259,000

Provisions:

1. Notwithstanding Sections 99313 and 99314 of the Public Utilities
Code, not more than $59,912 of the amount appropriated by this item
shall reimburse the Controller for expenditures for administration of

State Transportation Assistance funds.

2. In addition to the amounts allocated pursuant to Section 99312 of
the Public Utilities Code, the Controller shall disburse sufficient
funds
from the balance of the Public Transportation Account to provide a
total of $100,259,000 to eligible regional transportation planning
agencies, county transportation commissions, and transit agencies
pursuant to Sections 99313 and 99314 of the Public Utilities Code for

support of the State Transit Assistance Program.

2660-001-0041--For support of Department of Transportation, for
payment to Item 2660-001-0042, payable from the Aeronautics
Account, State Transportation Fund  . . . 2,558,000

2660-001-0042--For support of Department of Transportation, payable
from the State Highway Account, State Transportation Fund.  . . .

1,443,577,000 
 1,524,625,000 

Schedule:

(a) 10-Aeronautics  . . . 2,883,000

(b) 20.10-Highway Transportation-- Capital Outlay Support  . . .

694,405,000 
 774,653,000 

(c) 20.30-Highway Transportation-- Local Assistance  . . . 12,755,000


(d) 20.40-Highway Transportation-- Program Development  . . .
76,535,000

(e) 20.65-Highway Transportation-- Legal  . . . 62,150,000

(f) 20.70-Highway Transportation-- Operations  . . . 137,000,000

(g) 20.80-Highway Transportation-- Maintenance  . . . 693,520,000

(h) 30-Mass Transportation  . . .  77,550,000 
 83,105,000 

(i) 40-Transportation Planning  . . .  24,357,000 
 25,157,000 

(j) 50.00-Administration  . . . 216,492,000

(k) 60.10-Equipment Service Center  . . .  152,530,000

 145,390,000 

(l) 60.20-Distributed Equipment Service Center  . . . 
-152,530,000 
 -145,390,000 

(m) Reimbursements  . . . -137,793,000

(n) Amount payable from the Aeronautics Account, State
Transportation Fund (Item 2660-001-0041)  . . . -2,558,000

(o) Amount payable from the Bicycle Lane Account, State
Transportation Fund (Item 2660-001-0045)  . . . -10,000

(p) Amount payable from the Public Transportation Account, State
Transportation Fund (Item 2660-001-0046)  . . .  -89,018,000

 -94,573,000 

(q) Amount payable from the Federal Trust Fund (Item 2660-0010890)
. . . -324,691,000

Provisions:

1. For purposes of the funds appropriated in Schedules (b) to (g),
inclusive, Program 20--Highway Transportation. Upon approval of the
Department of Finance, the Department of Transportation shall notify
the chairpersons of the fiscal committees and the Chairperson of the
Joint Legislative Budget Committee at least 20 days prior to spending

funds to expand activities above budgeted levels or to implement a
new activity not identified in this act, including any of those
expenditures to be funded through a transfer of money from other
expenditure categories or programs, except in the case of emergency
work increases caused by snow, storm, or earth movement damage.

2. From funds appropriated by this item, the Department of
Transportation may enter into interagency agreements with the
Department of the California Highway Patrol to compensate that
department for the cost of work performed by patrol officers at or
near
state highway construction projects so as to reduce the risk of
occurrence of serious motor vehicle accidents.

3. (a) Notwithstanding any other provision of law, funds appropriated

by this item from the State Highway Account may be reduced and
replaced by an equivalent amount of federal funds determined by the
department to be available and necessary to comply with Section 8.50
of this act and the most effective management of state transportation

resources. Not more than 30 days after replacing the state funds with

federal funds, the Director of Finance shall notify in writing the
chairperson of the committee in each house that considers
appropriations and the Chairperson of the Joint Legislative Budget
Committee of this action.

(b) To the extent that moneys in the State Highway Account are
reduced pursuant to this provision, the Department of Transportation
may transfer, with the approval of the Business, Transportation and
Housing Agency, and upon authorization by the Director of Finance,
all or part of the savings to Item 2660-301-0042 for capital outlay
projects approved by the California Transportation Commission. The
Director of Finance shall authorize the transfer not sooner than 30
days
after notification in writing to the chairperson of the committee in
each
house that considers appropriations and the Chairperson of the Joint
Legislative Budget Committee.

4. Notwithstanding any other provision of law, funds appropriated in
Schedules (a) to (l), inclusive, of this item for equipment rental
service
may be transferred between those schedules to allow for the proper
recording of expenditures as they relate to equipment rental service.


5. Notwithstanding any other provision of law, funding appropriated
in this item may be transferred to Item 2660-005-0042 to pay for any
necessary insurance, debt service, and other expenditures for
department-owned office buildings in District 4 and District 8. Any
transfer will require the prior approval of the Department of
Finance.

7. The Department of Transportation shall employ state staff to
undertake bridge inspections and bridge "scour" evaluations, and may
reduce up to $2,119,000 in Items 2660-101-0042 and 2660-101-0890
combined, and transfer these amounts to Items 2660-001-0042 and
2660-001-0890 respectively for this purpose. The department shall
conduct bridge inspection and scour evaluation for local bridges
unless
a local agency, upon written notification to the department, requests
to
conduct the work on its own.

8. Of the funds appropriated by this item, $400,000 shall be
available
to maintain the "floating vehicle" congestion management program in
District 4.

9. Of the funds appropriated in this item, $1,400,000 is available
for
the Rural Intelligent Transportation System Showcase, but only if
federal funds are approved therefor by the Federal Highway
Administration.

10. Any savings in personal services resulting from an inability to
fill
the proposed new positions for support of the capital outlay program
for a full year shall revert to the appropriate funds on June 30,
1999. 

11. In addition to the funds already appropriated in Schedule (b),
the
sum of forty million one hundred twenty-five thousand dollars
($40,125,000) is hereby appropriated on January 11, 1999, for the
purposes of Schedule (b).  

11. Notwithstanding any other provision of law, the Department of
Transportation shall sell Parcel Nos. 1773-01-01 and 6515-01-01,
which are located in the town of Middletown and have been designated
as surplus property by the state, to the South Lake County Fire
Protection District (district) for an amount not to exceed the
original
cost to the department for the purchase of the properties. The
transfer
of ownership shall take place no later than January 1, 1999, and
shall
be subject to the following conditions:

(a) Should the district wish to discontinue ownership of the property

prior to January 1, 2019, then ownership of the property would revert

to the department.

(b)

The property may only be used by a taxpayer supported agency and
may not be leased or subleased to a nontaxpayer supported entity
prior
to January 1, 2019.

(c)

The district shall allow for the temporary storage of any maintenance

vehicles or equipment owned and operated by the department as
necessary to provide for the timely and efficient maintenance of
local
highways that are the responsibility of the department. The intent of

this subdivision shall remain in effect until January 1, 2019.

12. (a)

The Department of Transportation shall not expend any funds for the
support, right-of-way, or construction of the Hatton Canyon Freeway
Project located on State Route 1, except those funds as are necessary

to design the project and obtain all necessary permits, unless the
department has complied with all applicable requirements of Division
20 (commencing with Section 30000) of the Public Resources Code.

(b)

The department shall report to the Chairperson of the Joint
Legislative
Budget Committee and the chairpersons of the fiscal committees of
each house of the Legislature when all of the required permits have
been approved by each local, state, or federal agency responsible for

issuing any of the required permits.

13. It is the intent of the Legislature that, upon completion of an
interim lease in the Manchester area, the Department of
Transportation
shall permanently site the future consolidated District 6
Headquarters
Building in the downtown area of the City of Fresno, which is defined

by the area bordered by Routes 41, 99, and 180.

The department shall provide a status report to the Legislature no
later
than December 1, 1999, on its plans for construction of the
consolidated District 6 Headquarters Building. The status report
shall
provide an update on efforts by the department to identify and
acquire
a building site and methods used to include community input for the
design and location of the building.

14. Prior to the commencement of construction on the Bay
Bridge/West Anchorage Reconstruction Project within the City and
County of San Francisco, the Department of Transportation shall enter

into a noise and dust mitigation agreement with the City and County
of San Francisco or other local government agency, as appropriate.

15. Of the funds appropriated in this item, $500,000 shall be
available
for the Department of Transportation to provide matching funds for
the 1998 federal Transportation Enhancement Activity (TEA-21) fund
available for the Norman Y. Mineta International Institute for
Surface
Transportation Policy Studies at San Jose University, and $300,000
shall be available for matching TEA-21 funds for the new
transportation research center at the University of Southern
California
Jointly with California State University at Long Beach. 

2660-001-0045--For support of Department of Transportation, for
payment to Item 2660-001-0042, payable from the Bicycle Lane
Account, State Transportation Fund  . . . 10,000

2660-001-0046--For support of Department of Transportation, for
payment to Item 2660-001-0042, payable from the Public
Transportation Account, State Transportation Fund  . . . 
89,018,000 
 94,573,000 

Provisions:

1. For Program 30--Mass Transportation. Of the  $58,087,000
appropriated by this item for intercity rail, $53,497,000 shall be
available to support existing service on the three state-supported
intercity rail routes and $4,590,000 is intended for the fifth and
sixth
expansion Capitol Corridor trains. Any funds not expended on these
services by June 30, 1999, shall revert to the Public Transportation
Account. If any intercity rail service is transferred to a local
Joint
Power Authority during the 1998-99 budget year, the department shall,

in conjunction with the Secretary for Business, Transportation and
Housing, advise the Joint Legislative Budget Committee of the cost to

provide the transferred service by the Joint Powers Authority, as
agreed upon pursuant to the Interagency Transfer Agreement for the
service, and this item shall be adjusted accordingly to reflect the
agreed upon funding level for the transferred service. The California

Transportation Commission and the Secretary of Business,
Transportation and Housing shall not allocate any of the $58,087,000
identified in this provision for any    $63,642,000
appropriated by this item for intercity rail, $54,997,000 shall be
available to support existing service on the three state-supported
intercity rail routes. Of the remaining balance, $4,055,000 is
intended
for the expansion of the fifth San Joaquin Corridor from Bakersfield
to Sacramento and $4,590,000 is intended for the fifth and sixth
expansion Capitol Corridor trains. Any funds not expended on these
services by June 30, 1999, shall revert to the Public Transportation
Account. If any intercity rail service is transferred to a local
Joint
Power Authority during the 1998-99 fiscal year, the department shall,

in conjunction with the Secretary of Business, Transportation and
Housing, advise the Joint Legislative Budget Committee of the cost to

provide the transferred service by the Joint Powers Authority, as
agreed upon pursuant to the Interagency Transfer Agreement for the
service, and this itemshall be adjusted accordingly to reflect the
agreed
upon funding level for the transferred service. The California
Transportation Commission and the Secretary of Business,
Transportation and Housing shall not allocate any of the $63,642,000
identified in this provision for any   purpose other than those
identified in this provision without the prior written approval of
the
Department of Finance, and no sooner than 30 days after notification
in writing to the chairpersons of the fiscal committees of each house

of the Legislature and the Chairperson of the Joint Legislative
Budget
Committee, or not sooner than whatever lesser time the  chairperson
of the joint committee, or his or her designee, may in each instance
determine.

2660-001-0608--For support of Department of Transportation, payable
from the Equipment Service Fund  . . .  143,813,000 

 145,390,000 

2660-001-0890--For support of Department of Transportation, for
payment to Item 2660-001-0042, payable from the Federal Trust Fund
. . . 324,691,000

Provisions:

1. For Program 20--Highway Transportation. For purposes of the
Streets and Highways Code, all expenditures from this item shall be
deemed to be expenditures from the State Highway Account, State
Transportation Fund.

2. For Program 20--Highway Transportation. Federal funds may be
received from any federal source, and shall be deposited in the
Federal
Trust Fund. Any federal reimbursements shall be credited to the
account from which the expenditures were originally made.

3. Notwithstanding any other provision of law, the Director of
Finance
may augment this item with additional federal funds in conjunction
with an equivalent offsetting reduction in State Highway Account
funds in Item 2660-001-0042, pursuant to Provision 3 of that item.

2660-005-0042--For support of the Department of Transportation, for
building insurance, debt service, and other costs for
department-owned
office buildings in District 4 and District 8, payable from the State

Highway Account, State Transportation Fund  . . . 14,869,000

Provisions:

(1) Notwithstanding any other provision of law, funds provided in
Item
2660-001-0042 may be transferred to this item to pay for any
necessary insurance, debt service, and other expenditures for the
department-owned office buildings in District 4 and District 8. Any
transfer shall require the prior approval of the Department of
Finance.

2660-007-0042--For support of Department of Transportation, payable
from the State Highway Account, State Transportation Fund  . . .
46,587,000

Schedule:

(a) 20-Highway Transportation  . . . 46,569,000

(b) 50-Administration  . . . 18,000

Provisions:

1. The funds appropriated by this item may be expended only to attain

compliance with the storm-water discharge provisions of the National
Pollutant Discharge Elimination System permits as promulgated by the
State Water Resources Control Board or regional water quality control

boards, or as ordered by the federal courts.

2660-011-0041--For transfer by the State Controller from the
Aeronautics Account, State Transportation Fund, to the Public
Transportation Account, State Transportation Fund, as prescribed by
Section 21682.5 of the Public Utilities Code  . . . (30,000)

2660-011-0042--For transfer by the State Controller from the State
Highway Account, State Transportation Fund, to the Toll Bridge
Seismic Retrofit Account, State Transportation Fund  . . .
(101,521,000)

2660-012-0042--For augmentation for emergencies relating to a state
of emergency declared by the Governor, subject to all provisions of
Item 9840-001-0001, payable from the State Highway Account  . . .
(40,000,000)

Provisions:

1. No deficiencies shall be authorized by the Director of Finance in
any appropriation of money from this item under the provisions of
Section 11006 of the Government Code. Required notification to the
Legislature of deficiency appropriations pursuant to this item shall
include, in addition to all other required information, (a) an
estimate
of federal funds or other funds that the department may receive for
the
same purposes as the proposed deficiency appropriation, and (b)
explanation of the necessity of the proposed deficiency appropriation

given anticipated federal funds or other funds.

2660-013-0042--For transfer by the State Controller from the State
Highway Account, State Transportation Fund, to the Public
Transportation Account, State Transportation Fund to fund the Transit

Capital Improvement Program.  . . . (30,510,000)

2660-013-0046--For transfer by the State Controller from the Public
Transporation Account, State Transportation Fund, to the Toll Bridge
Seismic Retrofit Account, State Transportation Fund  . . .
(10,000,000)

2660-021-0042--For transfer by the State Controller from the State
Highway Account, State Transportation Fund, to the Public
Transportation Account, State Transportation Fund, as prescribed by
Section 194 of the Streets and Highways Code  . . . (13,470,000)

2660-022-0042--For transfer by the State Controller from the State
Highway Account, State Transportation Fund, to the Environmental
Enhancement and Mitigation Demonstration Account, State
Transportation Fund, as prescribed by Chapter 106, Statutes of 1989
. . . (9,000,000) 

2660-101-0001--For local assistance, Department of Transportation
. . . 3,600,000

Provisions:

1. Of the funds appropriated by this item, $600,000 shall be
available
to the San Francisco Port Authority for purposes of matching local
funds to support the Water Transit Blue Ribbon Advisory Task Force,
as endorsed by Senate Resolution 19 of the 1997-98 Regular Session.

2. Funds appropriated by this item, except as provided in Provision
1,
shall be used to award grants to local communities and regional
telecommunications networks for purposes of providing resources, on
a competitive basis, to cities and counties, to support planning and
development of "smart communities." A 50 percent cash or in-kind
match of local funds shall be required. The Department of
Transportation shall utilize these funds to augment an existing
interagency agreement (
51X717) with San Diego State University Foundation and the
California Institute for Smart Communities within the International
Center for Communications at the San Diego State University for
purposes of administering this grant program. The department, in
collaboration with the California Institute for Smart Communities,
shall, not later than September 1, 1998, develop criteria for these
competitive grant awards.

2660-101-0041--For local assistance, Department of Transportation,
payable from the Aeronautics Account, State Transportation Fund  .
. . 34,000

Provisions:

1. The funds appropriated by this item shall only be available for
subvention to the City of South Lake Tahoe to support air traffic
control tower operations at the Lake Tahoe Airport (Airport). It is
the
intent of the Legislature that these funds are provided on a one-time

basis to provide bridge funding to the Airport pending appeal to the
federal government to reestablish participation by the Airport in the

Federal Contract Tower Program administered by the Federal Aviation
Administration. 

2660-101-0042--For local assistance, Department of Transportation,
payable from the State Highway Account, State Transportation Fund
. . . 668,517,000

Schedule:

(a) 20.25-Highway Transportation-- State Local Partnership  . . .
200,000,000

(b) 20.30-Local Assistance  . . . 156,342,000

(c) 30-Mass Transportation  . . . 310,175,000

(d) 40-Transportation Planning  . . . 2,000,000

Provisions:

1. Funds appropriated in item (a) shall be available for allocation
by
the California Transportation Commission in the 1998-99 fiscal year.

Allocation funds shall be available for expenditures in the 1998-99,
1999-2000, 2000-2001, and 2001-2002 fiscal years.

2. Funds appropriated in item (b) and (c) shall be available for
allocation by the California Transportation Commission in the
1998-99, 1999-2000, and 2000-2001 fiscal years.

3. Notwithstanding other provisions of law, funds appropriated within

Schedule (b) may be transferred to Schedule (c), and funds
appropriated within Schedule (c) may be transferred to Schedule (b).

These transfers shall require the prior approval of the California
Transportation Commission and the Department of Finance. These
funds shall be available for allocation by the Commission in 1998-99,

1999-2000, 2000-2001.

4. Notwithstanding other provisions of law, funds scheduled in items
(b) or (c) may be transferred to Item 2660-301-0042. These transfers
shall require the prior approval of the California Transportation
Commission and the Department of Finance. The Department of
Finance shall authorize any transfer pursuant to this provision not
sooner than 30 days after notification in writing to the chairpersons
in
each house which considers appropriations and the Chairperson of the
Joint Legislative Budget Committee. Such transfers shall be available

for allocation by the commission in the 1998-99, 1999-2000, and
2000-2001 fiscal years.

6. The department shall employ state staff to undertake bridge
inspections and bridge "scour" evaluations, and may reduce up to
$2,119,000 in Items 2660-101-0042 and 2660-101-0890 combined,
and transfer these amounts to Items 2660-001-0042 and
2660-001-0890, respectively, for this purpose. The department shall
conduct bridge inspection and scour evaluation for local bridges
unless
local agencies, upon written notification to the department, request
to
conduct the work on their own.

2660-101-0045--For local assistance, Department of Transportation,
Program 20--Highway Transportation, payable from the Bicycle Lane
Account, State Transportation Fund  . . . 1,000,000

2660-101-0183--For local assistance, Department of Transportation,
Program 20--Highway Transportation, payable from the
Environmental Enhancement and Mitigation Demonstration Program
Fund  . . . 10,000,000

2660-101-0890--For local assistance, Department of Transportation,
payable from the Federal Trust Fund  . . . 650,112,000

Schedule:

(a) 20-Highway Transportation  . . . 564,112,000

(b) 30-Mass Transportation  . . . 46,000,000

(c) 40-Transportation Planning  . . . 40,000,000

Provisions:

1. For Program 20--Highway Transportation. For purposes of the
Streets and Highways Code, all expenditures from this item shall be
deemed to be expenditures from the State Highway Account, State
Transportation Fund.

2. For Program 20--Highway Transportation. Federal funds may be
received from any federal source and shall be deposited in the
Federal
Trust Fund. Any federal reimbursements shall be credited to the
account from which the expenditures were originally made.

3. Notwithstanding other provisions of law, funds appropriated within

Schedule (a) may be transferred to Schedule (b), and funds
appropriated within Schedule (b) may be transferred to Schedule (a).

Funds appropriated within Schedules (a) and (b) may be transferred to

Item 2660-301-0890. These transfers shall require the prior approval
of the Department of Finance and the California Transportation
Commission. These funds shall be available for allocation by the
commission and shall be available for expenditure in the 1998-99,
1999-2000, and 2000-2001 fiscal years.

5. The Department of Transportation shall employ state staff to
undertake bridge inspections and bridge "scour" evaluations, and may
reduce up to $2,119,000 in Items 2660-101-0042 and 2660-101-0890
combined, and transfer these amounts to Items 2660-001-0042 and
2660-001-0890, respectively, for this purpose. The department shall
conduct bridge inspection and scour evaluation for local bridges
unless
a local agency, upon written notification to the department, request
to
con-duct the work on its own. 

2660-103-0046--For local assistance, Department of Transportation,
payable from the Public Transportation Account, State Transportation
Fund  . . . 185,000

Schedule:

(b) 30-Mass Transportation  . . . 185,000

Provisions:

1. The funds appropriated by this item shall be expended only to
reimburse the Capitol Corridor Joint Powers Board for administrative
costs related to the preparation and implementation of an interagency

transfer agreement (ITA) with the state for the operation of the
capitol
corridor Intercity Rail Service. These moneys shall be available only

if the ITA is executed in the 1997-98 or 1998-99 fiscal year. Any
funds appropriated by this item that are not expended for this
purpose
shall revert to the Public Transportation Account on June 30, 1999.


2660-301-0042--For capital outlay, Department of Transportation,
payable from the State Highway Account, State Transportation Fund
. . .  820,000,000 
 830,000,000 

Schedule:

(a) 20-Highway Transportation  . . .  1,610,460,000 

 1,620,460,000 

(1) State Highway Operation and Protection Program  . . . 
(428,449,000) 
 (474,264,000) 

(2) Regional Improvements  . . .  (384,007,000)

 (251,804,000) 

(3) Interregional    Improvements  . . .  (58,544,000)

 (103,932,000) 

(4) Reimbursements  . . .  (757,533,000)       
 (790,460,000) 

(b) Reimbursements  . . . -790,460,000

Provisions:

1. For Program 20--Highway Transportation. Notwithstanding any
other provision of law, up to five percent of the amounts scheduled
in
this item may be transferred to Item 2660-101-0042 of this act only
under emergency situations, for implementation of cost savings
programs, or to maximize the use of federal funds. These transfers
shall require the prior approval of the California Transportation
Commission and the Department of Finance.

2. For Program 20--Highway Transportation. For each capital outlay
appropriation, the department shall determine for reversion the
difference between the appropriation and the total amount needed for
encumbered projects, encumbered right-of-way, and projects still to
be
scheduled for encumbrance against the appropriations. On or before
December 15, 1998, the department shall submit to the Controller the
estimated amounts to be reverted as of June 30, 1998, from the
1995-96 and 1996-97 and 1997-98 fiscal year appropriations.

3. For Program 20--Highway Transportation. Notwithstanding any
other provision of law, funds appropriated by this item may be
transferred to Item 2660-101-0042, Schedule (b), by agreement with
those agencies described by subdivision (g) of Section 182.6 of the
Streets and Highways Code for federally apportioned highway bridge
replacement and rehabilitation projects and Hazard Elimination Safety

Program projects, on a dollar-for-dollar basis. Transferred and
exchanged funds shall only be used for projects selected for these
programs. These transfers shall require the prior approval of the
California Transportation Commission and the Department of Finance.

2660-301-0890--For capital outlay, Department of Transportation,
payable from the Federal Trust Fund  . . . 1,112,048,000

Schedule:

(a) 20--Highway Transportation  . . . 1,107,000,000

(b) 30-Mass Transportation  . . .    5,048,000

Provisions:

1. For Program 20--Highway Transportation. Notwithstanding any
other provision of law, up to five percent of the amounts
appropriated
by this item may be transferred to Item 2660-101-0890 only under
emergency situations, for implementation of cost savings programs or
to maximize the use of federal funds. These transfers shall require
the
prior approval of the California Transportation Commission and the
Department of Finance.

2. Provision 2 of Item 2660-301-0042 is also applicable to this item.


3. For Program 20--Highway Transportation. For purposes of the
Streets and Highways Code, all expenditures from this item shall be
deemed to be expenditures from the State Highway Account, State
Transportation Fund.

4. For Program 20--Highway Transportation. Federal funds may be
received from any federal source and shall be deposited in the
Federal
Trust Fund. Any federal reimbursements shall be credited to the
account from which the expenditures were originally made.

2660-302-0046--For capital outlay, Department of Transportation,
payable from the Public Transportation Account, State Transportation
Fund  . . . 0

Schedule:

(a) 30-Mass Transportation  . . . 50,000,000

(b) Reimbursements  . . . -50,000,000

2660-311-0042--For capital outlay, Department of Transportation,
payable from the State Highway Account, State Transportation Fund
. . . 3,033,000

Schedule:

(1) 20.20.508-Sacramento Headquarters Annex: Seismic
Retrofit--Construction  . . . 3,033,000

Provisions:

1. For Program 20--Highway Transportation. Up to 20 percent of the
funds appropriated in (1) of this item may be transferred from Item
2660-301-0042 of this act to enable the California Transportation
Commission to allocate supplemental funds to projects within this
item. The transfer may be made only with the approval of the
commission. Also, the Department of Finance shall be notified of the
transfer prior to the commission's approval of any transfer or
allocation
of those funds to any project.

2660-399-0042--For the Department of Transportation, for final cost
accounting of projects for which appropriations have expired, for
state
operations, local assistance, or capital outlay, payable from the
State
Highway Account, State Transportation Fund. Funds appropriated in
this item shall be available for expenditure until June 30, 1999  . .
.
5,000,000

2660-491--Reappropriation, Department of Transportation.
Notwithstanding any other provision of law, the unliquidated
encumbrances for the appropriations provided in the following
citations, are reappropriated until June 30, 1999. The unencumbered
balance shall not be available for encumbrance.

0042--State Highway Account

(1) Item 2660-301-042, Budget Act of 1989

(2) Item 2660-301-042, Budget Act of 1990

(3) Item 2660-125-042, Budget Act of 1995

0045--Bicycle Lane Account

(1) Item 2660-101-045, Budget Act of 1995

0183--Environmental Enhancement and Mitigation Demonstration
Program Fund

(1) Item 2660-125-183, Budget Act of 1995

0853--Petroleum Violation Escrow Account

(1) Chapter 1427, Statutes of 1988

(2) Chapter 1434, Statutes of 1988

(3) Chapter 1435, Statutes of 1988

(4) Chapter 1648, Statutes of 1990

(5) Chapter 960, Statutes of 1991

(6) Item 2660-101-853, Budget Act of 1992

(7) Chapter 1159, Statutes of 1993

0890--Federal Trust Fund

(1) Item 2660-101-890, Budget Act of 1993

0056--Seismic Safety Retrofit Account

(1) Chapter 18, Statutes of 1989

(4) Item 2660-101-890, Budget Act of 1990

(5) Item 2660-101-890, Budget Act of 1992

2660-492--Reappropriation, Department of Transportation.
Notwithstanding any other provision of law, the balance as of June
30,
1998, of the appropriations in the following citations, are
appropriated
for the purposes provided for in those appropriations and shall be
available for expenditure until June 30, 1999.

0042--State Highway Account

(1) Item 2660-301-042, Budget Act of 1994

(2) Item 2660-301-042, Budget Act of 1995

0890-Federal Trust Fund

(1) 2660-301-890, Budget Act of 1994

(2) 2660-301-890, Budget Act of 1995

2660-493--Reappropriation, Department of Transportation.
Notwithstanding any other provision of law, the appropriations in the

following citations are reappropriated to enable the collection of
outstanding federal reimbursements as of the end of June 30, 1998.
These appropriations are not available for encumbrance or liquidation

and shall revert on June 30, 1999:

0890--Federal Trust Fund

(1) Item 2660-001-890, Budget Act of 1985

(2) Item 2660-001-890, Budget Act of 1986

(3) Item 2660-001-890, Budget Act of 1987

(4) Item 2660-001-890, Budget Act of 1988

(5) Item 2660-001-890, Budget Act of 1989

(6) Item 2660-001-890, Budget Act of 1990

(7) Item 2660-001-890, Budget Act of 1991

(8) Item 2660-001-890, Budget Act of 1992

(9) Item 2660-001-890, Budget Act of 1993

2660-495--Reversion, Department of Transportation. As of June 30,
1997, the unencumbered balances of the appropriations provided in the

following citations shall revert to the balance in the fund from
which
the appropriation was made:

0042--State Highway Account

(1) Item 2660-301-042, Budget Act of 1988

(2) Item 2660-301-042, Budget Act of 1989

0890--Federal Trust Fund

(1) Item 2660-301-890, Budget Act of 1988

2660-496--Reversion, Department of Transportation. As of June 30,
1999, pursuant to the September 1996 audit findings prepared by the
Department of Finance, the unencumbered balances in the following
items shall revert to the Petroleum Violation Escrow Account to repay

any remaining interest earned in the Transportation Planning and
Development Account during 1996-97 on Transit Capital
Improvement Projects financed by Petroleum Violation Escrow
Account funds.

0046--Transportation Planning and Development Account

(1) Item 2660-101-046, Budget Act of 1986 as amended by Chapter
890, Statutes of 1986

(2) Item 2660-101-046, Budget Act of 1997 except for the
encumbered balance in the Amtrak Bakersfield Project which is
funded by the Transportation Planning and Development Account,
STF

(3) Item 2660-301-046, Budget Act of 1988

2665-001-0046--For support of the High-Speed Rail Authority,
payable from the Public Transportation Account, State Transportation
Fund  . . . 3,000,000

2700-001-0044--For support of Office of Traffic Safety, payable from
the Motor Vehicle Account, State Transportation Fund  . . . 336,000

Schedule:

(a) 10-California Traffic Safety   . . . 14,908,000

(b) Amount payable from the Federal Trust Fund (Item 2700-0010890)
. . . -14,572,000

2700-001-0890--For support of Office of Traffic Safety, for payment
to Item 2700-001-0044, payable from the Federal Trust Fund, not
subject to the provisions of Section 28.00  . . . 14,572,000

2700-101-0890--For local assistance, Office of Traffic Safety,
payable
from the Federal Trust Fund, not subject to the provisions of Section

28.00  . . . 10,682,000

2720-001-0042--For support of Department of the California Highway
Patrol, for payment to Item 2720-001-0044, payable from the State
Highway Account, State Transportation Fund  . . . 21,914,000

2720-001-0044--For support of Department of the California Highway
Patrol, payable from the Motor Vehicle Account, State Transportation
Fund  . . . 783,967,000

Schedule:

(a) 10-Traffic Management  . . .  737,424,000 
 738,144,000 

(b) 20-Regulation and Inspection  . . . 83,182,000

(c) 30-Vehicle Ownership Security  . . . 22,454,000

(d) 35-Protective Services  . . . 29,317,000

(e) 40.01-Administration  . . . 135,634,000

(f) 40.02-Distributed Administra- tion  . . . -135,634,000

(g) Reimbursements  . . .  -28,288,000 
 -29,008,000 

(h) Amount payable from the State Highway Account (Item
2720-001-0042)  . . . -21,914,000

(i) Amount payable from the Protective Services Fund (Item
2720-001-0246)  . . . -26,120,000

(j) Amount payable from the Motor Carrier Permit Fund (Item
2720-001-0292)  . . . -1,554,000

(k) Amount payable from the Motor Carrier Safety Improvement Fund
(Item 2720-001-0293)  . . . -1,468,000

(l) Amount payable from the California Motorcyclist Safety Fund
(Item 2720-001-0840)  . . . -1,541,000

(m) Amount payable from the Federal Trust Fund (Item
2720-001-0890)  . . . -5,323,000

(n) Amount payable from the Hazardous Substance Account, Special
Deposit Fund (Item 2720-001-0942)  . . . -200,000

(o) Amount payable from the Asset Forfeiture Account, Special
Deposit Fund (Item 2720-0110942)  . . . -2,002,000

Provisions:

1. Pursuant to Section 14669 of the Government Code, the Department
of General Services, acting on behalf of the California Highway
Patrol,
may enter into a lease-purchase agreement or a lease with an option
to
purchase, with an initial option purchase price over $2,000,000, to
provide adequate office and parking facilities for the Los Angeles
Communication Center and to acquire facilities for the Central Los
Angeles Area Office. The lease agreement shall be submitted to the
Department of Finance for review and approval of the proposed lease
prior to beginning lease negotiations, with an economic analysis
detailing the cost benefit of the project. The Director of Finance
shall
approve or disapprove any lease-purchase agreement submitted to the
Department of Finance pursuant to this provision not sooner than 30
days after written notification to the  Chairperson of the Joint
Legislative Budget Committee and the chairpersons of the fiscal
committees of the Legislature.

 3.

  2.   In addition to the funds already
appropriated in this
item, it is the intent of the Legislature that the amount of
$54,000,000
shall be reserved for allocation to Item 9800-001-0494 for salary
increases for sworn uniformed California Highway Patrol officers in
accordance with Section 19827 of the Government Code. 

3. Notwithstanding Provision 2 of Item 2720-011-0042 of Section 2.00
of the Budget Act of 1997 (Ch. 282, Stats. 1997), the $35,000,000
loan from the State Highway Account to the Motor Vehicle Account
shall not be required to be repaid by June 30, 1999.

4. No funds shall be expended by the Department of the California
Highway Patrol to construct a fence around the Capitol Building.


2720-001-0246--For support of Department of the California Highway
Patrol, for payment to Item 2720-001-0044, payable from the
Protective Services Fund  . . . 26,120,000

2720-001-0292--For support of Department of the California Highway
Patrol, for payment to Item 2720-001-0044, payable from the Motor
Carrier Permit Fund  . . . 1,554,000

2720-001-0293--For support of Department of the California Highway
Patrol, for payment to Item 2720-001-0044, payable from the Motor
Carrier Safety Improvement Fund  . . . 1,468,000

2720-001-0840--For support of the Department of the California
Highway Patrol, for transfer to Item 2720-001-0044, payable from the
California Motorcyclist Safety Fund  . . . 1,541,000

2720-001-0890--For support of Department of the California Highway
Patrol, for payment to Item 2720-001-0044, payable from the Federal
Trust Fund  . . . 5,323,000

2720-001-0942--For support of Department of the California Highway
Patrol, for payment to Item 2720-001-0044, payable from the
Hazardous Substance Account, Special Deposit Fund  . . . 200,000


2720-011-0001--For transfer by the Controller from the General Fund
to the Motor Vehicle Account, State Transportation Fund  . . .
35,000,000 

2720-011-0942--For support of Department of the California Highway
Patrol, for payment to Item 2720-001-0044, payable from the Asset
Forfeiture Account, Special Deposit Fund  . . . 2,002,000

2720-021-0044--For Department of the California Highway Patrol, for
advance authority for the department to incur automotive equipment
purchase obligations in an amount not to exceed $5,000,000 during the

1998-99 fiscal year, for delivery beginning in the 1999-2000 fiscal
year, payable from the Motor Vehicle Account, State Transportation
Fund  . . . (5,000,000) 

2720-301-0001--For capital outlay, Department of the California
Highway Patrol  . . . 150,000 

2720-301-0044--For capital outlay, Department of the California
Highway Patrol, payable from the Motor Vehicle Account, State
Transportation Fund  . . . 140,000

Schedule:

(1) 50.01.001-Minor Projects  . . . 36,000

(2) 50.90.900-Statewide: Property Options and Appraisals  . . .
40,000

(3) 50.90.901-Studies, Preplanning, and Budget Packages  . . .
100,000

(4) Reimbursements  . . . -36,000

2720-495--Reversion, Department of the California Highway Patrol.
As of June 30, 1998,  $2,000,000    $1,600,000
  of
the appropriation provided in the following citation for the purposes
of
constructing a fence around the State Capitol shall revert to the
balance
in the fund from which the appropriation was made.

0001--General Fund

(1) Item 2720-031-0001, Budget Act of 1997 (Ch. 282, Stats. 1997)

2740-001-0001--For support of Department of Motor Vehicles, for
payment to Item 2740-001-0044  . . .  60,000 
 340,000 

Provisions:

1.  The    Of the   funds appropriated by
this item
 are    $60,000 is available   for the
Anatomical
Donor Designation program   and $280,000 is available for the
Tehachapi field office  .

2740-001-0042--For support of Department of Motor Vehicles, for
payment of Item 2740-001-0044, payable from the State Highway
Account, State Transportation Fund  . . . 37,913,000

2740-001-0044--For support of Department of Motor Vehicles,
payable from the Motor Vehicle Account, State Transportation Fund
. . .  317,051,000 
 317,601,000 

Schedule:

(a) 11-Vehicle/Vessel Identification and Compliance  . . . 
328,601,000 
 329,305,000 

(b) 22-Driver Licensing and Personal Identification  . . . 
162,751,000 
 162,877,000 

(c) 25-Driver Safety  . . . 73,524,000

(d) 32-Occupational Licensing and Investigative Services  . . .
32,511,000

(e) 35-New Motor Vehicle Board  . . . 1,520,000

(f) 41.01-Administration  . . . 66,574,000

(g) 41.02-Distributed Administration  . . . -66,574,000

(h) Reimbursements  . . . -6,746,000

(i) Amount payable from the General Fund (Item 2740-001-0001)  . .
.  -60,000 
 -340,000 

(ix) Amount payable from the State Highway Account, State
Transportation Fund (Item 2740-0010042)  . . . -37,913,000

(j) Amount payable from the New Motor Vehicle Board Account,
State Transportation Fund (Item 2740-001-0054)  . . . -1,520,000

(k) Amount payable from the Motor Vehicle License Fee Account,
Transportation Tax Fund (Item 2740-001-0064)  . . . -230,854,000

(l) Amount payable from Motor Carriers Permit Fund (Item
2740-001-0292)  . . . -2,865,000

(m) Amount payable from the Harbors and Watercraft Revolving Fund
(Item 2740-001-0516)  . . . -1,898,000

Provisions:

1. The Department of Motor Vehicles shall not divert any resources
away from its year-2000 efforts for any of its information technology

projects unless the project is a component of the department's plan
to
become year-2000 compliant or the department certifies that it has
completed all year-2000 efforts for its mission critical systems.

2. Of the amount appropriated in this item, $2,726,000 shall be used
for the redesign of the department's vehicle registration database
and
$4,404,000 shall be used to replace the department's occupational
licensing system. The department shall certify to the Department of
Information Technology and to the Joint Legislative Budget
Committee that it has completed Phase II (Redesign) of its Business
Process Reengineering study for vehicle registration and occupational

licensing, respectively, no later than 20 days prior to the
expenditure
of funds provided for the redesign of the respective databases.

3. Of the amount appropriated in this item, $253,000 shall be used
for
the replacement of the department's headquarters' "3270" terminals
with new terminals on a three-year lease. One terminal may be
replaced with a personal computer (PC), provided that PC
functionality is immediately required at the corresponding
workstation.

4. Of the amount appropriated in this item, $1,152,253 shall be used
for the replacement of the department's field office terminals with
new
terminals. Up to 3 percent of these terminals may be replaced with
PCs, provided that PC functionality is immediately required at the
corresponding workstation.

5. Of the amount appropriated in this item, $1,162,000 may be used
to replace the department's telephone system with hardware, software,

and services that are made available by the vendor who is awarded the

contract for replacement of the Calnet system. 

6. Of the amount appropriated by this item, $350,000 shall be used to

modify the computer systems of the Department of Motor Vehicles to
provide that, in cases in which a smog check certificate is the only
outstanding registration requirement, vehicle registration stickers
be
automatically mailed to the owner once the vehicle passes its smog
check test. It is the intent of the Legislature that this change be
completed by January 1, 1999.

7. Of the amount appropriated by this item, $200,000 shall be used by

the Department of Motor Vehicles and the Department of Consumer
Affairs, through an interagency agreement, to implement a joint
public
awareness program informing consumers that sellers are required by
law to provide a valid smog certificate of compliance prior to sale
of
a vehicle, pursuant to Section 24007 of the Vehicle Code. 

2740-001-0054--For support of Department of Motor Vehicles, for
payment to Item 2740-001-0044, payable from the New Motor Vehicle
Board Account, State Transportation Fund  . . . 1,520,000

2740-001-0064--For support of Department of Motor Vehicles, for
payment to Item 2740-001-0044, payable from the Motor Vehicle
License Fee Account, Transportation Tax Fund  . . . 230,854,000

2740-001-0292--For support of Department of Motor Vehicles, for
payment to Item 2740-001-0044, payable from the Motor Carriers
Permit Fund   . . . 2,865,000

2740-001-0516--For support of Department of Motor Vehicles, for
payment to Item 2740-001-0044, payable from the Harbors and
Watercraft Revolving Fund  . . . 1,898,000

Provisions:

1. The funds appropriated by this item are for undocumented vessel
registration and fee collection.

2740-011-0044--For payment of deficiencies in appropriations for the
Department of Motor Vehicles which may be authorized by the
Director of Finance, payable from the Motor Vehicle Account, State
Transportation Fund  . . . (1,000,000)

Provisions:

1. The Director of Finance shall report allocations from this
appropriation in the same manner as required for reporting
allocations
from Item 9840-001-0494 of this act.

2740-101-0042--For local assistance, Department of Motor Vehicles,
payable from the State Highway Account, State Transportation Fund
. . . 25,000,000

Provisions:

1. The funds appropriated by this item shall be allocated to the
Department of Motor Vehicles for disbursement to counties by the
Controller in the form of loans in an amount no greater than each
county could have received under subdivision (b) of Section 9250.19
of the Vehicle Code for the 1998-99 fiscal year, which loans shall be

for the purpose of allowing local law enforcement agencies to upgrade

automated mobile and fixed location fingerprint identification
equipment.

2. The loans shall be repaid by each county, without interest, in
accordance with a repayment schedule established by the Department
of Finance that ensures that each loan will be repaid within five
years
from the date that the actual collection of the one dollar ($1) fee
commences pursuant to subdivision (a) of Section 9250.19 of the
Vehicle Code. Repayment of the loans shall be made by the
withholding of money by the Controller, in accordance with that
repayment schedule, from funds otherwise required to be disbursed
under subdivision (b) of Section 9250.19 of the Vehicle Code.

3. The Controller shall report no later than March 1 of each year to
the
Chairperson of the Joint Legislative Budget Committee on the status
of the repayment of all outstanding loans made to counties with
moneys appropriated by this item. 

4. All counties that pass a resolution pursuant to Section 9250.19 of

the Vehicle Code no later than September 1, 1998, shall be eligible
to
receive a loan, pursuant to the provisions of this item, in an amount

not less than the amount that the county would have received under
subdivision (b) of Section 9250.19 of the Vehicle Code for the
calendar year in which the loan was made. 

2740-301-0044--For capital outlay, Department of Motor Vehicles,
payable from the Motor Vehicle Account, State Transportation Fund
. . .  7,185,000 
 12,474,000 

Schedule:

(1) 71.03.015-Sacramento Headquarters: 7th Floor Asbestos
Removal--Construction  . . . 1,318,000

(2) 71.03.016-Sacramento Headquarters: Lower Level Asbestos
Removal--Working drawings, construction   . . . 704,000

(3) 71.03.017-Sacramento Headquarters: 4th Floor Asbestos
Removal--Preliminary plans, working drawings  . . . 505,000

(4) 71.22.010-Statewide: Studies, preplanning and budget packages
. . . 100,000 

(5) 71.37.010-Oakland-Claremont: Field Office replacement
project--Construction  . . . 5,289,000 

(6) 71.39.010-Long Beach: Field Office--Purchase of leased facility
. . . 4,558,000

2780-001-0683--For support of Stephen P. Teale Data Center,
Business, Transportation and Housing Agency, payable from the
Stephen P. Teale Data Center Revolving Fund  . . . 86,004,000

Schedule:

(a) Support  . . . 86,166,000

(b) Reimbursements (Human Resources Information System)  . . .
-162,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance
may authorize expenditures for the Stephen P. Teale Data Center in
excess of the amount appropriated not sooner than 30 days after
notification in writing of the necessity therefor is provided to the
chairpersons of the fiscal committees in each house of the
Legislature
and the Chairperson of the Joint Legislative Budget Committee, or not

sooner than whatever lesser time the chairperson of the committee, or

his or her designee, may in each instance determine.

                              TRADE AND COMMERCE

2920-001-0001--For support of California Trade and Commerce
Agency  . . .  24,915,000 
 26,145,000 

Schedule:

(a) 10-Economic Development  . . .  10,596,000 
 11,651,000 

(b) 20-International Trade and Investment  . . .  4,679,000

 4,654,000 

(c) 25-Marketing and Communications  . . . 674,000

(d) 30-Tourism  . . . 8,011,000

(e) 40-Contracts, Grants, and Loans  . . . 847,000

(f) 60-Economic Research and Strategic Planning  . . . 
1,287,000

 1,487,000 

(g) 70.01-Administration  . . . 4,434,476

(h) 70.02-Distributed Administration  . . . -4,434,476

(i) Reimbursements  . . . -1,179,000

 Provisions:

1. The Secretary of Trade and Commerce, by January 1, 1999, shall
remove any lien placed on property owned by the United States
Olympic Committee in connection with the loan authorized pursuant
to Section 7591 of the Government Code. The removal of the lien does
not signify a legislative intent to relieve the obligation of the San
Diego
National Sports Training Foundation from repaying the loan made
pursuant to Section 7591 of the Government Code. 

2920-001-0123--For support of California Trade and Commerce
Agency, Program 10, payable from the Rural Economic Development
Fund  . . . 145,000

2920-001-0145--For support of California Trade and Commerce
Agency, payable from the Commerce Marketing Fund  . . . 106,000

Schedule:

(a) 10-Economic Development  . . . 52,000

(b) 30-Tourism  . . . 54,000

2920-001-0440--For support of California Trade and Commerce
Agency, payable from the Petroleum Underground Storage Tank
Financing Account  . . . 1,506,000

Schedule:

(a) 10-Economic Development  . . . 1,031,000

(b) 40-Contracts, Grants and Loans  . . . 475,000

2920-001-0633--For support of California Trade and Commerce
Agency, Program 10, payable from the California Economic
Development Financing Authority Fund  . . . 347,000

2920-001-0649--For support of California Trade and Commerce
Agency, payable from the California Infrastructure and Economic
Development Bank Fund  . . . 459,000

Schedule:

(a) 10-Economic Development  . . . 365,000

(b) 40-Contracts, Grants and Loans  . . . 94,000

2920-001-0801--For support, California Trade and Commerce
Agency, Program 10--Economic Development, payable from the
California Small Business Development Center Fund  . . . 250,000

2920-001-0890--For support, California Trade and Commerce
Agency, Program 10--Economic Development, payable from the
Federal Trust Fund  . . . 937,000

2920-002-0393--For support of California Trade and Commerce
Agency, payable from the Job Creation Investment Fund  . . . 500,000

Schedule:

(a) 10-Economic Development  . . . 362,000

(b) 40-Contracts, Grants, and Loans  . . . 138,000

(d) 70.01-Administration  . . . 70,000

(e) 70.02-Distributed Administration  . . . -70,000

2920-011-0001--For support of California Trade and Commerce
Agency  . . .  4,737,000 
 4,662,000 

Schedule:

(a) For transfer to the Small Business Expansion Fund (0918)  . . .
4,662,000

(b) For transfer to the California Export Promotion Account (0824)  .

. .  75,000 
 0 

2920-012-0001--For support of California Trade and Commerce
Agency, Foreign Trade Offices  . . .  5,526,000 
5,906,000 

Schedule:

(a) Taiwan  . . . 348,000

(b) Africa  . . .  363,000 
 443,000 

(c) Germany  . . . 564,000

(d) Hong Kong  . . .  1,256,000 
 956,000 

(e) London  . . . 490,000

(f) Mexico City  . . . 1,353,000

(g) Japan  . . . 1,152,000

 (h) Shanghai  . . . 300,000

(i) Calgary  . . . 150,000

(j) Philippines  . . . 150,000 

2920-101-0001--For local assistance, California Trade and Commerce
Agency  . . .  18,282,000 
 30,957,000 

Schedule:

 (a1) 10.10-Economic Development (Small Business Development
Centers)  . . . 1,000,000 

(a) 10.30-Economic Development (Strategic Technology Program)  .
. .  12,867,000 
 23,467,000 

(b) 10.40-Economic Development (Defense Adjustment Projects)  . .
. 3,000,000

(c) 10.50-Economic Development (Small Business Development
Centers)  . . .  2,115,000 
 3,015,000 

(d) 20-International Trade and Investment  . . .  300,000

 225,000 

 (e) 30-Tourism  . . . 250,000 

Provisions:

 1. Of the funds appropriated by this item, $300,000 is for
a
one-time expenditure for the Greater Oakland International Trade
Center to provide assistance and training to small businesses in the
greater Bay Area in identifying, establishing, and expanding export
markets for their products and services.

  1. Of the amount appropriated by this item, the Trade
and
Commerce Agency shall allocate $6,300,000 to implement the
California Space Flight Competitive Grant Program administered by
the California Space and Technology Alliance (CSTA) pursuant to
subdivision (p) of Section 15333.3 of the Government Code. The
CSTA may expend up to $875,000 for program administration.

2. Of the amount appropriated by this item, the Trade and Commerce
Agency shall allocate $2,200,000 to implement the Highway to Space
Competitive Grant Program administered by the Western Commercial
Space Center (WCSC) pursuant to Section 15333.4 of the Government
Code. The WCSC may expend up to $200,000 for program
administration.

3. Of the funds appropriated by this item, $500,000 shall be
allocated
to Kern County for activities within the Southwest Military Defense
Complex.

4. Of the funds appropriated by this item, $500,000 shall be
allocated
for the purpose of establishing pilot programs linking education,
employability skills, and job opportunities for at-risk youth in
Kings,
Kern, and/or Madera County. Funded pilot programs shall: (1) work
in collaboration with local school districts and businesses; (2)
provide
at-risk youths with tangible skills in career development, job
attainment, leadership, and self-development linked to work-based
activities; (3) provide a followup component to participants after
completion of the program; (4) include a community service
component; and (5) develop an ongoing career network for
disadvantaged adolescents. 

2920-101-0439--For local assistance, California Trade and Commerce
Agency, payable from the Underground Storage Tank Cleanup Fund,
for transfer to the Petroleum Underground Storage Tank Financing
Account  . . . (33,000,000)

2920-101-0801--For local assistance, California Trade and Commerce
Agency, Program 10--Economic Development, payable from the
California Small Business Development Center Fund  . . . 1,000,000

2920-101-0890--For local assistance, California Trade and Commerce
Agency, Program 10--Economic Development, payable from the
Federal Trust Fund  . . . 7,114,000

2920-111-0001--For local assistance, California Trade and Commerce
Agency  . . . 50,000,000

Schedule:

(1) For transfer to the California Infrastructure and Economic
Development Bank Fund (0649)  . . . 50,000,000

 Provisions:

1. Of the amounts transferred by this item, up to $8,500,000 may be
used for private technology development projects.

2. Of the amounts transferred by this item, up to $1,500,000 shall be

used for the extension of point-of-presence fiber optic networks.


2920-112-0001--For local assistance, California Trade and Commerce
Agency, for transfer to the Job Creation Investment Fund  . . .

5,000,000 
 6,500,000 

2920-112-0393--For local assistance, California Trade and Commerce
Agency, payable from the Job Creation Investment Fund  . . . 

5,000,000 
 6,500,000 

 2920-113-0001--For local assistance, California Trade and
Commerce Agency, for transfer to the California Infrastructure and
Economic Development Bank Fund (0649)  . . . 10,000,000

Provisions:

1. The funds appropriated in this item shall be solely available for
the
purpose of private economic development projects including, but not
limited to, Health Care, Multimedia, Environmental, and Information
Technology.  

2920-490--Reappropriation, Trade and Commerce Agency. The
balance of appropriations provided in the following item is
reappropriated.

0001--General Fund

(1) Item 2920-101-0001, of Ch. 282, Stats. 1997, as augmented by
Section 14 of Chapter 928 of the Statutes of 1997. 

                              RESOURCES

3110-001-0001--To the Resources Agency, Special Resources
Program, Program 30--Sea Grant Program, for grants to public and
private higher education for use as a maximum of two-thirds of the
local matching share for projects under the National Sea Grant
College
Program Act, as amended  . . . 319,000

3110-001-0140--To the Resources Agency, Special Resources
Program, Program 30-Sea Grant Program, for a grant to the University
of California for support of the Sea Grant Marine Advisory Program,
payable from the California Environmental License Plate Fund  . . .
112,000

3110-101-0001--For local assistance, Special Resources Program,
Program 10--Tahoe Regional Planning Agency  . . . 1,701,000

3110-101-0140--For local assistance, Special Resources Program,
Program 10--Tahoe Regional Planning Agency, payable from the
California Environmental License Plate Fund  . . . 247,000

3125-001-0001--For support of California Tahoe Conservancy  . . .
 2,897,000 
 3,097,000 

Schedule:

(a) 10-Tahoe Conservancy  . . .  3,464,000 
 3,426,000 

(b) Reimbursements  . . . -33,000

(c) Amount payable from California Environmental License Plate
Fund (Item 3125-001-0140)  . . .  -344,000 
 -106,000 

(d) Amount payable from Habitat Conservation Fund (Item
3125-001-0262)  . . . -17,000

(e) Amount payable from the Lake Tahoe Conservancy Account (Item
3125-001-0286)  . . . -1,000

(g) Amount payable from the Tahoe Conservancy Fund (Item
3125-001-0568)  . . . -172,000

Provisions:

1. The funds appropriated in Schedule (d) of this item shall be used
for
purposes consistent with the Natural Resources Infrastructure Fund
and the Habitat Conservation Fund. 

2. Of the amount appropriated by this item, $200,000 is available for

Tahoe Regreen purposes. 

3125-001-0140--For support of California Tahoe Conservancy, for
payment to Item 3125-001-0001, payable from the California
Environmental License Plate Fund  . . .  344,000 
 106,000 

3125-001-0262--For support of California Tahoe Conservancy, for
payment to Item 3125-001-0001, payable from the Habitat
Conservation Fund  . . . 17,000

3125-001-0286--For support of California Tahoe Conservancy, for
payment to Item 3125-001-0001, payable from the Lake Tahoe
Conservancy Account  . . . 1,000 

3125-011-0383--For transfer by the State Controller to the Habitat
Conservation Fund, payable from the Natural Resources Infrastructure
Fund  . . . (17,000)

Provisions:

1. The funds transferred by this item shall be used for purposes
consistent with the requirements of the National Resources
Infrastructure Fund and the Habitat Conservation Fund. 

3125-001-0568--For support of California Tahoe Conservancy, for
payment to Item 3125-001-0001, payable from the Tahoe Conservancy
Fund  . . . 172,000

Provisions:

1. Of this amount, pursuant to Section 66908.3 of the Government
Code, the conservancy shall pay $40,390 to the County of Placer, and
$2,610 to the County of El Dorado.

2. Fifty percent (50%) of the amounts pursuant to Provision 1 above
shall be used by the Counties of Placer and El Dorado for soil
erosion
control projects in the Lake Tahoe region, as defined in Section
66905.5 of the Government Code. 

3125-011-0383--For transfer by the State Controller to the Habitat
Conservation Fund, payable from the Natural Resources Infrastructure
Fund  . . . (17,000)

Provisions:

1. The funds transferred by this item shall be used for purposes
consistent with the requirements of the Natural Resources
Infrastructure Fund and the Habitat Conservation Fund. 

3125-101-0001--For local assistance, California Tahoe Conservancy,
Program 10--Tahoe Conservancy, for soil erosion control grants  . . .

 2,000,000 
 2,400,000 

Provisions:

1. Notwithstanding any other provision of law, this appropriation
shall
be available for encumbrance until June 30, 2001. 

2. Of the funds appropriated by this item, the amount of $2,000,000
is available for soil erosion control grants and the amount of
$400,000
is available for construction of the Rocky Point bicycle and
pedestrian
trail. 

3125-101-0140--For local assistance, California Tahoe Conservancy,
Program 10--Tahoe Conservancy, for soil erosion control grants,
payable from the California Environmental License Plate Fund  . . .
2,000,000

Provisions:

1. Notwithstanding any other provision of law, this appropriation
shall
be available for encumbrance until June 30, 2001.

3125-301-0001--For capital outlay, California Tahoe Conservancy  .
. .  7,500,000 
 6,000,000 

Schedule:

(1) 50.30.002-Land acquisition and site improvements--public access
and recreation pursuant to Title 7.42 (commencing with Section
66905) of the Government Code  . . .  3,080,000 
 2,830,000 

(2) 50.30.004-Land acquisition and site improvements--stream
environment zones and watershed restorations pursuant to Title 7.42
(commencing with Section 66905) of the Government Code  . . .

1,914,000 
 1,164,000 

(3) 50.30.005-Land acquisition pursuant to Section 66907 of the
Government Code  . . .  2,750,000 
 2,250,000 

(4) Reimbursements  . . . -244,000

Provisions:

1. The acquisition of real property or interests with funds
appropriated
by this item is not subject to the Property Acquisition Law when the
value is $250,000 or less, and, therefore, is not subject to approval
by
the State Public Works Board.

2. The amount appropriated by this item is available for expenditure
for capital outlay or for local assistance. Expenditures of funds for

grants to public agencies and grants to nonprofit organizations, as
authorized by subdivision (a) of Section 66907.7 of the Government
Code, are exempt from review by the State Public Works Board.

3125-301-0140--For capital outlay, California Tahoe Conservancy,
payable from the California Environmental License Plate Fund  . . .
3,280,000

Schedule:

(a) 50.30.003-Acquisition, restoration, and enhancement of habitat  .

. . 500,000

(b) 50.30.004-Land acquisition and site improvements--stream
environment zone and watershed restoration  . . . 2,780,000

Provisions:

1. The acquisition of real property or interests with funds
appropriated
by this item is not subject to the Property Acquisition Law when the
value is less than $250,000 and, therefore, is not subject to Public
Works Board approval.

2. The amount appropriated by this item is available for expenditure
for capital outlay or for grants. Expenditures of funds for grants to

public agencies and grants to nonprofit organizations, as authorized
by
subdivision (a) of Section 66907.7 of the Government Code, are
exempt from Public Works Board review.

3125-301-0262--For capital outlay, California Tahoe Conservancy,
payable from the Habitat Conservation Fund  . . . 483,000

Schedule:

(1) 50.30.003-Acquisition, restoration, and enhancement of habitat  .

. . 483,000

Provisions:

1. The acquisition of real property or interests with funds
appropriated
by this item is not subject to the Property Acquisition Law when the
value is less than $250,000 and, therefore, is not subject to Public
Works Board approval.

2. The amount appropriated by this item is available for expenditure
for capital outlay or for local assistance. Expenditures of funds for

grants to public agencies and grants to nonprofit organizations, as
authorized by subdivision (a) of Section 66907.7 of the Government
Code, are exempt from Public Works Board review.

3. The funds appropriated by this item shall be used for purposes
consistent with the Natural Resources Infrastructure Fund and the
Habitat Conservation Fund.

3125-301-0286--For capital outlay, California Tahoe Conservancy,
payable from the Lake Tahoe Conservancy Account  . . . 210,000

Schedule:

(1) 50.30.002-Land acquisition and site improvements--Public access
and recreation pursuant to Title 7.42 (commencing with Section
66905) of the Government Code  . . . 105,000

(2) 50.30.004-Land acquisition and site improvements--Stream
environment zones and watershed restorations pursuant to Title 7.42
(commencing with Section 66905) of the Government Code  . . .
105,000

Provisions:

1. The acquisition of real property or interests with funds
appropriated
by this item is not subject to the Property Acquisition Law when the
value is $250,000 or less, and, therefore, is not subject to Public
Works Board approval.

2. The amount appropriated by this item is available for expenditure
for capital outlay or for local assistance. Expenditures of funds for

grants to public agencies and grants to nonprofit organizations, as
authorized by subdivision (a) of Section 66907.7 of the Government
Code, are exempt from Public Works Board review.

3125-301-0443--For capital outlay, California Tahoe Conservancy,
payable from the Lake Tahoe Water Quality Subaccount   . . .
5,000,000

Schedule:

(1) 50.30.007-Lake Tahoe Water Quality Program  . . . 5,000,000

Provisions:

1. The acquisition of real property or an interest in real property
with
funds appropriated by this item is not subject to the Property
Acquisition Law when the value is less than $250,000 and, therefore,
the acquisition is not subject to Public Works Board approval.

2. The funds appropriated by this item are available for expenditure
for
capital outlay or grants. Expenditures of funds for grants to public
agencies and grants to nonprofit organizations, as authorized by
subdivision (a) of Section 66907.7 of the Government Code, are
exempt from Public Works Board review.

3125-311-0383--For transfer by the State Controller to the Habitat
Conservation Fund, payable from the Natural Resources Infrastructure
Fund   . . . (483,000)

Provisions:

1. The funds transferred by this item shall be used for purposes
consistent with the requirements of the National Resources
Infrastructure Fund and the Habitat Conservation Fund.

3125-490--Reappropriation, California Tahoe Conservancy. The
balances of the appropriation provided in the following citation is
reappropriated for the purposes provided for in that appropriation,
and
shall be available for liquidation until June 30, 1999:

0001--General Fund

(1) Item 3125-101-164, Budget Act of 1993, as  transferred to the
General Fund per Section 16346 of the Government Code.

(2) Item 3125-301-001(a), Budget Act of 1993.

3340-001-0001--For support of California Conservation Corps  . . .
 32,450,000 
 42,450,000 

Schedule:

(a) 10-Training and Work Program  . . .  39,561,000 

 49,561,000 

(b) 10.55-Administration  . . . (6,872,000)

(c) 10.55-Distributed Administration  . . . (-6,872,000)

(d) Amount payable from the California Environmental License Plate
Fund (Item 3340-001-0140)  . . . -294,000

(e) Amount payable from the Public Resources Account, Cigarette and
Tobacco Products Surtax Fund (Item 3340-001-0235)  . . . -252,000

(f) Amount payable from the Energy Resources Programs Account,
General Fund (Item 3340-001-0465)  . . . -6,070,000

(g) Amount payable from the Federal Trust Fund (Item 3340-0010890)
. . . -495,000

Provisions:

1. Notwithstanding Section 14316 of the Public Resources Code, the
Department of Finance may make a loan from the General Fund to the
California Conservation Corps for the purposes of this item, in the
amount of 25 percent of the reimbursements anticipated in the
Collins-Dugan Reimbursement Account to be received by the
California Conservation Corps from each client agency, not to exceed
an aggregate total of $6,998,000, to meet cash-flow needs due to
delays in collecting reimbursements. Any loan made by the
Department of Finance pursuant to this provision shall only be made
if the California Conservation Corps has a valid contract or
certification signed by the client agency, which demonstrates that
sufficient funds will be available to repay the loan. All money so
transferred shall be repaid to the General Fund as soon as possible,
but
not later than one year from the date of the loan. On and after a
date
90 days after the end of that year, the Department of Finance shall
charge interest to the California Conservation Corps, at the rate
earned
in the Pooled Money Investment Fund, on any portion of the loan that
has not been repaid.

2. The funds appropriated by this act for the support of the
California
Conservation Corps are subject to the conditions set forth in this
item,
the Memorandum of Understanding as adopted by the Legislature as
a part of the annual budget process, and the Supplemental Report of
the 1998 Budget Act.

3. Of the funds appropriated by this item, $2,725,000 shall be
available for use by the California Conservation Corps to respond to
natural disasters and other emergencies, including the fighting of
forest
fires. The Director of Finance may adjust this amount to the extent
indicated by corrections identified by the director in the reports of
the
past expenditures of the California Conservation Corps upon which the

amounts appropriated by this item are based. The Director of Finance
shall notify the Chairperson of the Joint Legislative Budget
Committee
at least 30 days prior to making that adjustment.

4. To the extent that funds in excess of the amount identified in
Provision 3 are necessary in order for the California Conservation
Corps to respond to one or more emergencies declared by the
Governor, the Department of Finance shall transfer, from the funds
available pursuant to Section 8609.6 of the Government Code, an
amount not to exceed $1,500,000 as necessary to fund that response.
If, after the Department of Finance has transferred funds pursuant to

this provision, the California Conservation Corps receives
reimbursements or other amounts in payment of its costs of response
to one or more declared emergencies, those amounts shall be deposited

in the General Fund. 

5. It is the intent of the Legislature that $15,000,000 in Temporary
Assistance for Needy Families (TANF) funds appropriated by Item
5180-101-0890 to the Department of Social Services be provided to
the California Conservation Corps for pass-through to local corps for

CalWORKs recipient work participation activities.  

5. Of the amount appropriated by this item, $5,000,000 shall be
available for the acquisition and development of the San Francisco
Bay
Trail. The California Conservation Corps shall work in consultation
with the Association of Bay Area Governments to identify projects to
receive grants from this appropriation. 

3340-001-0140--For support of California Conservation Corps, for
payment to Item 3340-001-0001, payable from the California
Environmental License Plate Fund  . . . 294,000

3340-001-0235--For support of California Conservation Corps, for
payment to Item 3340-001-0001, payable from the Public Resources
Account, Cigarette and Tobacco Products Surtax Fund  . . . 252,000

3340-001-0465--For support of California Conservation Corps, for
payment to Item 3340-001-0001, payable from the Energy Resources
Programs Account, General Fund  . . . 6,070,000

3340-001-0853--For support of California Conservation Corps,
payable from Petroleum Violation Escrow Account  . . .  0

 9,737,000 

3340-001-0890--For support of California Conservation Corps, for
payment to Item 3340-001-0001, payable from the Federal Trust Fund
. . . 495,000

3340-301-0001--For capital outlay, California Conservation Corps  .
. . 1,100,000

Schedule:

(1) 20.10.135-Sequoia Base Center Kitchen Expansion/Office 
Relation  --Preliminary    Relocation--Preliminary

plans, working drawings, and construction  . . . 1,100,000

3360-001-0001--For support of State Energy Resources Conservation
and Development, for payment to Item  3360-001-0465  . . .
50,000,000

       3360-001-0465  . . . 1,600,000

Provisions:

1. Of the funds appropriated in this item, $1,600,000 shall be used
for
an Environmental, Energy, and Highway Research Test Track. 

3360-001-0044--For support of State Energy Resources, Conservation
and Development Commission, for payment to Item 3360-001-0465,
payable from the Motor Vehicle Account, State Transportation Fund
. . . 117,000

3360-001-0314--For support of State Energy Resources, Conservation
and Development Commission, for payment to Item 3360-001-0465,
payable from the Diesel Emission Reduction Fund  . . . 1,006,000

Provisions:

1. Notwithstanding subdivision (a) of Section 2.00 of this act, funds

appropriated by this item shall be available for expenditure during
the
1998-99 and 1990-00 fiscal years.

2. Notwithstanding Section 16304.1 of the Government Code, funds
appropriated by this item shall be available for liquidation of
encumbrances until June 30, 2004.

3. Notwithstanding any other provision of law, funds appropriated by
this item may be used by the State Energy Resources, Conservation
and Development Commission to provide grants, loans, or repayable
research contracts. When the commission evaluates proposals, a
high-point scoring method may be used in lieu of lowest cost.
Repayment terms shall be determined by the commission.

3360-001-0381--For support of State Energy Resources, Conservation
and Development Commission, for payment to Item 3360-001-0465,
payable from the Public Interest Research, Development and
Demonstration Programs Fund  . . . 65,119,000

Provisions:

1. Notwithstanding subdivision (a) of Section 2.00 of this act, funds

appropriated by this item shall be available for expenditure during
the
1998-99 and 1999-00 fiscal years.

2. Notwithstanding Section 16304.1 of the Government Code, funds
appropriated by this item shall be available for liquidation of
encumbrances until June 30, 2004.

3. Notwithstanding any other provision of law, funds appropriated by
this item may be used by the State Energy Resources, Conservation
and Development Commission to provide grants, loans, or repayable
research contracts. When the commission evaluates proposals, a
high-point scoring method may be used in lieu of lowest cost.
Repayment terms shall be determined by the commission.

3360-001-0382--For support of State Energy Resources, Conservation
and Development Commission, for payment to Item 3360-001-0465,
payable from Renewable Resource Trust Fund  . . . 1,436,000

3360-001-0465--For support of State Energy Resources, Conservation
and Development Commission, payable from the Energy Resources
Programs Account, General Fund  . . .  32,898,000 
 34,698,000 

Schedule:

(a) 10-Regulatory and Planning  . . .  18,865,000 
 19,065,000 

(b) 20-Energy Resources Conservation  . . . 11,112,000

(c) 30-Development  . . .  133,946,000 
 89,597,000 

(d) 40.01-Policy, Management and Administration  . . . 8,495,000

(e) 40.02-Distributed Policy, Management and Administration  . . .
-8,358,000

(f) Reimbursements  . . . -1,236,000

(fx) Amount payable from the General Fund (Item 3360-001-0001)
. . .  -50,000,000 
 -1,600,000 

(g) Amount payable from the Motor Vehicle Account, State
Transportation Fund (Item 3360-001-0044)  . . . -117,000

(h) Amount payable from the Diesel Emission Reduction Fund (Item
3360-001-0314)  . . . -1,006,000

(i) Amount payable from the Public Interest Research, Development
and Demonstration Programs Fund (Item 3360-001-0381)  . . .
-65,119,000

(j) Amount payable from the Renewable Resource Trust Fund (Item
3360-001-0382)  . . . -1,436,000

(k) Amount payable from Energy Technologies Research Development
and Demonstration Account (Item 3360-001-0479)  . . . -1,269,000

(l) Amount payable from Local Government Geothermal Resources
Revolving Subaccount, GRDA (Item 3360-001-0497)  . . . -257,000

(m) Amount payable from Petroleum Violation Escrow Account (Item
3360-001-0853)  . . .  -1,431,000 
 -2,931,000 

(n) Amount payable from Katz Schoolbus Fund (Item 3360-001-0854)
. . .  -655,000 
 -1,606,000 

(o) Amount payable from the Federal Trust Fund (Item
3360-001-0890)  . . . -8,474,000

(p) Amount payable from Energy Resources Programs Account,
General Fund (Public Resources Code Section 25402.1)  . . . -162,000

Provisions:

1. Notwithstanding any other provision of law, funds appropriated by
this item for the purposes of providing customer credits for
purchases
of renewable energy pursuant to paragraph (1) of subdivision (e) of
Section 383.5 of the Public Utilities Code shall, for a period of six

months after enactment of the Budget Act  of 1998  , be
made available for purchases of in-state renewable generation without

regard to ownership of the generation source.

 2. Of the funds appropriated by this item, $1,600,000 shall be
used for Solar Hot Water Heaters and Solar Electricity program.

3. Of the funds appropriated by this item from the Energy Resources
Programs Account, $200,000 shall be used for the development and
support of Consumer Electric Users Cooperatives. The commission
may utilize these funds to hire staff and consultant support as it
deems
necessary. 

3360-001-0479--For support of State Energy Resources, Conservation
and Development Commission, for payment to Item 3360-001-0465,
payable from the Energy Technologies Research, Development and
Demonstration Account for the purpose of funding loans, grants and
contracts to provide a variety of research projects  . . . 1,269,000

Provisions:

1. Notwithstanding subdivision (a) of Section 2.00 of this act, funds

appropriated by this item shall be available for expenditure during
the
1998-99 and 1999-00 fiscal years.

2. Notwithstanding Section 16304.1 of the Government Code, funds
appropriated by this item shall be available for liquidation of
encumbrances until June 30, 2002.

3. Notwithstanding any other provision of law, funds appropriated by
this item may be used by the State Energy Resources, Conservation
and Development Commission to provide grants, loans, or repayable
research contracts. When the commission evaluates proposals, a
high-point scoring method may be used in lieu of lowest cost.
Repayment terms shall be determined by the commission.

3360-001-0497--For support of State Energy Resources, Conservation
and Development Commission, for payment to Item 3360-001-0465,
payable from the Local Government Geothermal Resources Revolving
Subaccount, GRDA  . . . 257,000 

Provisions:

1. The Commission shall undertake a competitive solicitation for the
allocation, in the form of grants from the Geothermal Resources
Development Account (GRDA), of the funds appropriated by this
item. Eligible projects are those geothermal related reservoir
recharge
projects not otherwise qualifying for funds under SB 90 (Ch. 905,
Stats. 1997) as Renewable or Public Interest Energy Research
projects.

  The State Energy Resources Conservation and Development
Commission shall establish terms and conditions for funding
agreements that provide funding conditioned on the submittal of
technical data and analysis on the performance of reservoir recharge
and resulting production of electricity for eligible geothermal
related
reservoir recharge projects. 

3360-001-0853--For support of State Energy Resources, Conservation
and Development Commission, for payment to Item 3360-001-0465,
payable from Petroleum Violation Escrow Account  . . . 
1,431,000 
 2,931,000 

Provisions:

1. Notwithstanding subdivision (a) of Section 2.00 of this act, funds

appropriated by this item shall be available for expenditure during
the
1998-99 and 1999-00 fiscal years.

2. Notwithstanding Section 16304.1 of the Government Code, funds
appropriated by this item shall be available for liquidation of
encumbrances until June 30, 2002.

3. Notwithstanding any other provision of law, funds appropriated by
this item may be used by the State Energy Resources, Conservation
and Development Commission to provide grants, loans, or repayable
research contracts. When the commission evaluates proposals, a
high-point scoring method may be used in lieu of lowest cost.
Repayment terms shall be determined by the commission.

3360-001-0854--For support of State Energy Resources, Conservation
and Development Commission, for payment to Item 3360-001-0465,
payable from the Katz Schoolbus Fund created by Section 17911 of
the Education Code  . . .  655,000 
 1,606,000 

Provisions:

1. Notwithstanding subdivision (a) of Section 2.00 of this act, funds

appropriated by this item shall be available for expenditure during
the
1998-99 and 1999-00 fiscal years.

2. Notwithstanding Section 16304.1 of the Government Code, funds
appropriated by this item shall be available for liquidation of
encumbrances until June 30, 2002.

3. Notwithstanding any other provision of law, funds appropriated by
this item may be used by the State Energy Resources, Conservation
and Development Commission to provide grants, loans, or repayable
research contracts. When the commission evaluates proposals, a
high-point scoring method may be used in lieu of lowest cost.
Repayment terms shall be determined by the commission.

3360-001-0890--For support of State Energy Resources, Conservation
and Development Commission, for payment to Item 3360-001-0465,
payable from the Federal Trust Fund  . . . 8,474,000

3360-101-0497--For local assistance, State Energy Resources,
Conservation and Development Commission, pursuant to Section 3822
of the Public Resources Code, payable from the Local Government
Geothermal Resources Revolving Subaccount, General Fund  . . .
4,500,000

Schedule:

(a) 30-Development  . . . 4,500,000

Provisions:

1. Notwithstanding subdivision (a) of Section 2.00 of this act, funds

appropriated by this item shall be available for expenditure during
the
1998-99 and 1999-00 fiscal years.

2. Notwithstanding Section 16304.1 of the Government Code, funds
appropriated by this item shall be available for liquidation of
encumbrances until June 30, 2002.

3. The Commission shall undertake a competitive solicitation for the
allocation, in the form of grants from the Geothermal Resources
Development Account (GRDA), of the funds appropriated by this item

 and the amount, as of June 30, 1997, of the unexpended funds
appropriated by Item 3360-001-0497 of Section 2.00 of the Budget
Act of 1997  . Eligible projects are those geothermal related
reservoir recharge projects not otherwise qualifying for funds under
SB 90 (Ch. 905, Stats. 1997) as Renewable or Public Interest Energy
Research projects.

  The State Energy Resources Conservation and Development
Commission shall establish terms and conditions for funding
agreements that provide funding conditioned on the submittal of
technical data and analysis on the performance of reservoir recharge
and resulting production of eletricity for the eligible geothermal
related
reservoir recharge projects.

3360-490--Reappropriation, State Energy Resources, Conservation and
Development Commission. The balance of the appropriations provided
in the following citations are reappropriated for the purposes
provided
for in those appropriations, and shall be available for encumbrance
and
expenditure until June 30, 1999:

0381--Public Interest Research, Development and Demonstration
Fund:

(1) Item 3360-001-0381, Budget Act of 1997.

0853--Petroleum Violation Escrow Account:

(1) Chapter 980, Statutes of 1995, Section 1(D)(3), Provide Loans for

the Farm Energy Loan Program and Section 1(D)(4), Provide
Technical Assistance for the Farm Energy Loan Program.

3360-491--Extension of liquidation period, State Energy Resources,
Conservation and Development Commission. Notwithstanding any
other provision of law, funds appropriated in the following citations

shall be available for liquidation until June 30, 1999:

0497--Local Government Geothermal Resources Subaccount:

(1) Item 3360-101-0497, Budget Act of 1994.

Notwithstanding any other provisions of law, the funds appropriated
in the following citations shall be available for liquidation until
June
30, 2000:

0853--Petroleum Violation Escrow Account:

(1) Chapter 1159, Statutes of 1993, Section 6(K)(9), Yosemite
National Park Alternative, as reappropriated by Item 3360-490 and
Item 3360-492, Budget Act of 1994.

Notwithstanding any other provisions of law, the funds appropriated
in the following citations shall be available for liquidation until
June
30, 2002.

0381--Public Interest Research, Development and Demonstration
Fund:

(1) Item 3360-001-0381, Budget Act of 1997.

3460-001-0001--For support of Colorado River Board of California
. . . 209,000

Schedule:

(a) 10-Protection of California's Colorado River Rights and Interests

. . . 1,076,000

(b) Reimbursements  . . . -851,000

(c) Amount payable from the California Environmental License Plate
Fund (Item 3460-001-0140)  . . . -16,000

3460-001-0140--For support of Colorado River Board of California,
for payment to Item 3460-001-0001, payable from the California
Environmental License Plate Fund  . . . 16,000

Provisions:

1. The funds appropriated by this item are for the Salinity Control
Forum.

3480-001-0001--For support of Department of Conservation  . . .
16,120,000

Schedule:

(a) 10-Geologic Hazards and Mineral Resources Conservation  . . .
22,203,000

(b) 20-Oil, Gas, and Geothermal Resources  . . . 11,701,000

(c) 30-Land Resource Protection  . . . 2,255,000

(d) 40.01-Administration  . . . 8,582,000

(e) 40.02-Distributed Administration  . . . -8,582,000

(f) 50-Beverage Container Recycling and Litter Reduction Program
. . . 20,933,000

(g) Reimbursements  . . . -8,266,000

(h) Amount payable from the Surface Mining and Reclamation
Account, General Fund (Item 3480-001-0035)  . . . -2,401,000

(i) Amount payable from the State Highway Account, State
Transportation Fund (Item 3480-001-0042)  . . . -12,000

(j) Amount payable from the California Beverage Container Recycling
Fund (Item 3480-001-0133)  . . . -20,858,000

(k) Amount payable from the California Environmental License Plate
Fund (Item 3480-001-0140)  . . . -55,000

(l) Amount payable from the Soil Conservation Fund (Item
3480-001-0141)  . . . -998,000

(m) Amount payable from Hazardous and Idle-Deserted Well
Abatement Fund (Section 3206, Public Resources Code)  . . . -55,000

(n) Amount payable from Mine Reclamation Account (Item
3480-001-0336)  . . . -1,244,000

(o) Amount payable from Seismic Hazards Identification Fund (Item
3480-001-0338)  . . . -1,826,000

(p) Amount payable from the Strong Motion Instrumentation Special
Fund (Item 3480-001-0398)  . . . -2,740,000

(q) Amount payable from the Agricultural Land Stewardship Program
Fund (Item 3480-001-0867)  . . . -100,000

(r) Amount payable from the Federal Trust Fund (Item
3480-001-0890)  . . . -2,417,000

Provisions:

1. Notwithstanding any other provision of law, upon approval and
order of the Director of Finance, the Department of Conservation may
borrow sufficient funds, from special funds that otherwise provide
support for the department, to meet cash-flow needs due to delays in
collecting reimbursements. Any loan made by the Department of
Finance pursuant to this provision may be made only if the
Department of Conservation has a valid contract or certification
signed
by the client agency, which demonstrates that sufficient funds will
be
available to repay the loan. All money so transferred shall be repaid
to
the special fund as soon as possible, but not later than one year
from
the date of the loan. 

2. Of the funds appropriated by this item, $15,000,000 shall be used
for the Agricultural Land Stewardship Program. 

3480-001-0035--For support of Department of Conservation, for
payment to Item 3480-001-0001, payable from the Surface Mining and
Reclamation Account, General Fund  . . . 2,401,000

3480-001-0042--For support of Department of Conservation, for
payment to Item 3480-001-0001, payable from the State Highway
Account, State Transportation Fund  . . . 12,000

Provisions:

1. The funds appropriated by this item are for the state's share of
costs
of the California Institute of Technology seismograph network.

3480-001-0133--For support of Department of Conservation, for
payment to Item 3480-001-0001, payable from the California
Beverage Container Recycling Fund  . . . 20,858,000

3480-001-0140--For support of Department of Conservation, for
payment to Item 3480-001-0001, payable from the California
Environmental License Plate Fund  . . . 55,000

3480-001-0141--For support of Department of Conservation, for
payment to Item 3480-001-0001, payable from the Soil Conservation
Fund  . . . 998,000

3480-001-0336--For support of Department of Conservation, for
payment to Item 3480-001-0001, payable from the Mine Reclamation
Account  . . . 1,244,000

3480-001-0338--For support of Department of Conservation, for
payment to Item 3480-001-0001, payable from the Seismic Hazards
Identification Fund  . . . 1,826,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance
may authorize expenditures from the Seismic Hazard Identification
Fund in excess of the amount appropriated not sooner than 30 days
after notification in writing of the necessity therefore is provided
to the
chairpersons of the fiscal committees and the Chairperson of the
Joint
Legislative Budget Committee, or not sooner than whatever lesser time

the chairperson of the committee, or his designee, may in each
instance determine. When exercising this provision, the department
must maintain a minimum 10 percent reserve balance in the Seismic
Hazards Identification Fund at all times and not exceed a total
program
expenditure level of $2,300,000. This provision may also be used to
reduce expenditures below the amount appropriated by this item
should revenues be unable to maintain an adequate balance. 

2. (a) If, on or before September 1, 1998, the Department of
Conservation receives additional funds from the Federal Emergency
Management Agency for the mapping of seismic hazard areas related
to the Northridge Earthquake of 1994, then not more than $1,250,000
of the funds appropriated in this item shall be used to publish maps
for
seismic hazard areas in the Counties of Los Angeles, Orange, and
Ventura, and the remainder of the funds appropriated in this item,
including any additional funds approved pursuant to Provision 1 and
including an additional appropriation of $400,000, shall be used to
publish maps of seismic hazard areas associated with the Peninsula
Segment of the San Andreas Fault, the Hayward Fault, and the
Calaveras Fault in the Counties of Alameda, Contra Costa, San Mateo,
and Santa Clara and in the City and County of San Francisco,
prioritized considering earthquake hazards and populations at risk.

(b) If, on or before September 1, 1998, the department does not
receive the federal funds described in (a)
above, then all of the funds appropriated by this item, including
any
additional funds approved pursuant to Provision 1 and including an
additional appropriation of $84,000, shall be used to publish maps of

seismic hazard areas associated with the Peninsula Segment of the San

Andreas Fault, the Hayward Fault, and the Calaveras Fault in the
Counties of Alameda, Contra Costa, San Mateo, and Santa Clara and
in the City and County of San Francisco, prioritized considering
earthquake hazards and populations at risk. 

3480-001-0398--For support of Department of Conservation, for
payment to Item 3480-001-0001, payable from the Strong Motion
Instrumentation Special Fund  . . . 2,740,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance
may authorize expenditures from the Strong Motion Instrumentation
Special Fund in excess of the amount appropriated not sooner than 30
days after notification in writing of the necessity therefore is
provided
to the chairpersons of the fiscal committees and the Chairperson of
the
Joint Legislative Budget Committee, or not sooner than whatever
lesser time the chairperson of the committee, or his designee, may in

each instance determine. When exercising this provision, the
department must maintain a minimum ten percent reserve balance in
the Strong Motion Instrumentation Special Fund at all times and not
exceed a total program expenditure level of $5,000,000. This
provision
may also be used to reduce expenditures below the amount
appropriated by this item should revenues be unable to maintain an
adequate balance.

3480-001-0867--For support of Department of Conservation, for
payment to Item 3480-001-0001, payable from the Agricultural Land
Stewardship Program Fund  . . . 100,000

Provisions:

1. Funds appropriated by this item shall be used for purposes
consistent with the requirements of the Agricultural Land Stewardship

Program Fund and the Public Resources Account, Cigarette and
Tobacco Products Surtax Fund.

2. Notwithstanding any other provision of law, this appropriation
shall
be available for encumbrance until June 30, 2000.

3480-001-0890--For support of Department of Conservation, for
payment to Item 3480-001-0001, payable from the Federal Trust Fund
. . . 2,417,000 

3480-002-0001--For support of the Department of Conservation  . . .
934,000

Provisions:

1. Funds appropriated by this item shall be available for
expenditure
by the department only if, on or before September 1, 1998, the
department receives additional funds from the Federal Emergency
Management Agency for the mapping of seismic hazard areas related
to the Northridge Earthquake of 1994, in which case the funds
appropriated by this item shall be used to publish maps of seismic
hazard areas associated with the Peninsula Segment of the San
Andreas Fault, the Hayward Fault, and the Calaveras Fault in the
counties of Alameda, Contra Costa, San Mateo, and Santa Clara and
in the City and County of San Francisco, prioritized considering
earthquake hazards and populations at risk. 

3480-011-0235--For transfer by the State Controller to the
Agricultural
Land Stewardship Program Fund, payable from the Public Resources
Account, Cigarette and Tobacco Products Surtax Fund  . . . 100,000

Provisions:

1. The funds transferred by this item shall be available to the
Department of Conservation to fund the Agricultural Land
Stewardship Program pursuant to Chapter 931 of the Statutes of 1995,
and shall be used for purposes consistent with the requirements of
the
Public Resources Account, Cigarette and Tobacco Products Surtax
Fund.

3480-101-0001--For local assistance, Department of Conservation  .
. .  15,120,000 
 8,120,000 

Provisions:

1. The amount of  $15,000,000    $8,000,000
  of the
funds appropriated by this item shall be used for the Agricultural
Land
Stewardship Program. 

2. Notwithstanding any other provision of law, this appropriation
shall
be available for encumbrance until June 30, 2001.

3. Notwithstanding any other provision of law, when the Department
of Conservation evaluates proposals, priority shall be given to
projects
with matching funds.

3480-101-0141--For local assistance, Department of Conservation,
Program--30 Land Resource Protection, payable from the Soil
Conservation Fund for the Agricultural Land Stewardship Program  .
. . 2,000,000

Provisions:

1. Funds appropriated by this item shall be used for the purposes
authorized by the Agricultural Land Stewardship Program.

2. Funds are appropriated by this item only to the extent that those
funds are available in the 1998-99 fiscal year from the balance of
the
cancellation fees not transferred to the Soil Conservation Fund
subsequent to the appropriation made by Item 3480-001-0141.

3. Notwithstanding any other provision of law, this appropriation
shall
be available for encumbrance until June 30, 2001.

4. Notwithstanding any other provision of law, when the Department
of Conservation evaluates proposals, priority shall be given to
projects
with matching funds. 

3480-101-0867--For local assistance, Department of Conservation,
payable from the Agricultural Land Stewardship Program Fund  . . .
3,600,000

Schedule:

(c) 30-Land Resource Protection  . . . 3,600,000

Provisions:

1. Funds appropriated by this item shall be used for purposes
consistent with the requirements of the Agricultural Land Stewardship

Program Fund, the California Environmental License Plate Fund and
the Public Resources Account, Cigarette and Tobacco Products Surtax
Fund.

2. Notwithstanding any other provision of law, this appropriation
shall
be available for encumbrance until June 30, 2001.

3480-111-0140--For transfer by the State Controller to the
Agricultural
Land Stewardship Program Fund, payable from the California
Environmental License Plate Fund  . . . 1,700,000

Provisions:

1. The funds transferred by this item shall be available to the
Department of Conservation to fund the Agricultural Land
Stewardship Program pursuant to Chapter 931 of the Statutes of 1995,
and shall be used for purposes consistent with the requirements of
the
California Environmental License Plate Fund.

3480-111-0235--For transfer by the State Controller to the
Agricultural
Land Stewardship Program Fund, payable from the Public Resources
Account, Cigarette and Tobacco Products Surtax Fund  . . . 1,900,000

Provisions:

1. The funds transferred by this item shall be available to the
Department of Conservation to fund the Agricultural Land
Stewardship Program pursuant to Chapter 931 of the Statutes of 1995,
and shall be used for purposes consistent with the requirements of
the
Public Resources Account, Cigarette and Tobacco Products Surtax
Fund.

3480-295-0001--For local assistance, Department of Conservation, for
reimbursement, in accordance with the provisions of Section 6 of
Article XIII B of the California Constitution or of Section 17561 of
the
Government Code, of the costs of any new program or increased level
of service of an existing program mandated by statute or executive
order, State Controller  . . . 0

Schedule:

(1) 98.01.113.175-Mineral resources policies (Ch. 1131, Stats. 1975)
. . . 0

Provisions:

1. Pursuant to Section 17581 of the Government Code, the mandate
identified in the appropriation schedule of this item with an
appropriation of $0 and included in the language of this provision is

specifically identified by the Legislature for suspension during the
1998-99 fiscal year:

(a) Mineral resources policies (Ch. 1131, Stats. 1975)

3540-001-0001--For support of Department of Forestry and Fire
Protection  . . .  277,971,320 
 280,783,000 

Schedule:

(a) 100000-Personal services  . . .  309,085,600 
 311,444,000 

(b) 300000-Operating expenses and equipment  . . . 
134,392,400

 140,862,000 

(c) Reimbursements  . . .  -113,195,680 
 -114,159,000 

(d) Amount payable from the General Fund (Item 3540-006-0001)  .
. . -20,000,000

(e) Less funding provided by capital outlay  . . . -1,687,000

(f) Amount payable from the State Fire Marshal Licensing and
Certification Fund (Item 3540-001-0102)  . . . -1,797,000

(g) Amount payable from the California Environmental License Plate
Fund (Item 3540-001-0140)  . . . -862,000

(h) Amount payable from the California Fire and Arson Training Fund
(Item 3540-001-0198)  . . . -1,386,000

(i) Amount payable from the Hazardous Liquid Pipeline Safety Fund
(Item 3540-001-0209)  . . . -1,854,000

(j) Amount payable from the Hazardous Liquid Pipeline Safety Fund
(Chapter 814, Statutes of 1997)  . . . -271,000

(k) Amount payable from the Insurance Fund (Ch. 420, Stats. 1994)
. . . -340,000

(l) Amount payable from the Public Resources Account, Cigarette and
Tobacco Products Surtax Fund (Item 3540-001-0235)  . . . -325,000

(m) Amount payable from the Professional Forester Registration Fund
(Item 3540-001-0300)  . . . -170,000

(n) Amount payable from the California Wildlife, Coastal, and Park
Land Conservation Fund of 1988 (Item 3540-001-0786)  . . . -26,000

(o) Amount payable from the Federal Trust Fund (Item 3540-0010890)
. . . -9,133,000

(p) Amount payable from the Forest Resources Improvement Fund
(Item 3540-001-0928)  . . .  -14,433,000 
 -19,486,000 

(q) Amount payable from the Timber Tax Fund (Item 3540-001-0965)
. . . -27,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance
may authorize the temporary or permanent redirection of funds from
this item for purposes of emergency fire suppression and detection
costs and related emergency revegetation costs.

2. Notwithstanding any other provision of law, the Department of
Forestry and Fire Protection is authorized to collect up to $300,000
in
reimbursements from nursery sale receipts for State Nursery
operations.

3. Notwithstanding any other provision of law, the Department of
Forestry and Fire Protection shall remit as General Fund revenue any
nursery sale receipts collected during the period July 1, 1998,
through
June 30, 1999, in excess of the amount needed to reimburse the costs
of operating the State Nursery.

4. Of the amount appropriated in Schedule (p) of this item,
$8,421,000
shall be available only for expenditure for those purposes set forth
in
Section 4799.13 of the Public Resources Code, except that no funds
shall be expended for the purposes set forth in paragraph (8) of
subdivision (a) of that section.

3540-001-0102--For support of Department of Forestry and Fire
Protection, for payment to Item 3540-001-0001, payable from the State

Fire Marshal Licensing and Certification Fund  . . . 1,797,000

3540-001-0140--For support of Department of Forestry and Fire
Protection, for payment to Item 3540-001-0001, payable from the
California Environmental License Plate Fund  . . . 862,000

3540-001-0198--For support of Department of Forestry and Fire
Protection, for payment to Item 3540-001-0001, payable from the
California Fire and Arson Training Fund  . . . 1,386,000

3540-001-0209--For support of Department of Forestry and Fire
Protection, for payment to Item 3540-001-0001, payable from the
Hazardous Liquid Pipeline Safety Fund  . . . 1,854,000

3540-001-0235--For support of Department of Forestry and Fire
Protection, for payment to Item 3540-001-0001, payable from the
Public Resources Account, Cigarette and Tobacco Products Surtax
Fund  . . . 325,000

3540-001-0300--For support of Department of Forestry and Fire
Protection, for payment to Item 3540-001-0001, payable from the
Professional Forester Registration Fund  . . . 170,000

3540-001-0786--For support of Department of Forestry and Fire
Protection, for payment to Item 3540-001-0001, payable from the
California Wildlife, Coastal, and Park Land Conservation Fund of
1988 for the California Wildlife, Coastal, and Park Land Conservation

Program  . . . 26,000

3540-001-0890--For support of Department of Forestry and Fire
Protection, for payment to Item 3540-001-0001, payable from the
Federal Trust Fund  . . . 9,133,000

3540-001-0928--For support of Department of Forestry and Fire
Protection, for payment to Item 3540-001-0001, payable from the
Forest Resources Improvement Fund  . . .  14,433,000

 11,065,000 

Provisions:

1. Notwithstanding any other provision of law, $1,192,000 of the
amount appropriated  in    by   this item
shall be
available for forest wildlife habitat assessment, biodiversity,
forest and
rangeland and research, and forest and range resources assessment
programs. 

2. Of the amount appropriated by this item, $633,000 shall be
available for urban forestry grants pursuant to Chapter 2 (commencing

with Section 4799.06) of Part 2.5 of Division 4 of the Public
Resources Code.

3. Of the amount appropriated by this item, $2,200,000 shall be
available for forest improvement programs pursuant to Chapter 1
(commencing with Section 4790) of Part 2.5 of Division 4 of the
Public Resources Code.

4. Of the amount appropriated by this item, $120,000 shall be
available for the purpose of establishing two positions to assist
local
landowner groups in performing watershed assessments and assisting
in educating landowners and other governmental agencies in the use
of watershed information.

5. Of the amount appropriated by this item, $2,100,000 shall be
expended for the control of the pitch canker fungus in accordance
with
the provisions of Senate Bill 1712, if enacted during the 1997-98
Regular Legislative Session. 

3540-001-0965--For support of Department of Forestry and Fire
Protection, for payment to Item 3540-001-0001, payable from the
Timber Tax Fund  . . . 27,000

3540-006-0001--For support of Department of Forestry and Fire
Protection, for payment to Item 3540-001-0001  . . . 20,000,000

Provisions:

1. The funds appropriated by this item shall be available for
emergency fire suppression and detection costs and related emergency
revegetation costs and may be used for these purposes to reimburse
the
main support appropriation (Item 3540-001-0001) only upon approval
by the Director of Finance.

2. The Director of Forestry and Fire Protection shall furnish
quarterly
reports on expenditures for emergency fire suppression activities to
the
Director of Finance, as well as to the chairperson of the committee
of
each house of the Legislature that considers appropriations and to
the
Chairperson of the Joint Legislative Budget Committee.

3540-011-0928--For transfer to the General Fund, no more than the
amount of nursery sale receipts collected during the period July 1,
1998, through June 30, 1999, for the actual costs of State Nursery
operations, payable from the Forest Resources Improvement Fund  .
. . (300,000) 

3540-101-0001--For local assistance, Department of Forestry and Fire
Protection  . . . 465,000

Schedule:

(a) Lake Nacimiento Fire and Rescue Boat  . . . 65,000

(b) Stokes Mountain Solar Powered Repeater  . . . 400,000 

3540-101-0786--For local assistance, Department of Forestry and Fire
Protection, Program 12.10-Resources Protection and Improvement,
payable from the California Wildlife, Coastal, and Park Land
Conservation Fund of 1988 for the California Wildlife, Coastal, and
Park Land Conservation Program  . . . 400,000

3540-301-0001--For capital outlay, Department of Forestry and Fire
Protection  . . . 32,286,000

Schedule:

(1) 30.10.005-Alma Helitack Base: Replace Facility--Preliminary plans

and working drawings  . . . 218,000

(2) 30.10.010-Sonoma Air Attack Base: Replace
Facility--Construction and equipment  . . . 1,937,000

(3) 30.10.030-Bridgeville Forest Fire Station: Relocation
Facility--Acquisition  . . . 149,000

(4) 30.10.035-Stevens Creek Forest Fire Station: Replace
Facility--Preliminary plans and working drawings  . . . 123,000

(5) 30.10.050-Rohnerville Air Attack Base: Replace
Facility--Construction and equipment  . . . 1,479,000

(6) 30.10.055-Ukiah Air Attack Base: Replace Facility--Acquisition
. . . 670,000

(7) 30.10.090-Pacheco Forest Fire Station: Replace
Facility--Preliminary plans and working drawings  . . . 131,000

(8) 30.20.020-Lassen-Modoc Ranger Unit Headquarters: Replace
Apparatus Building and Auto Shop--Preliminary plans and working
drawings  . . . 174,000

(9) 30.20.025-Ogo Forest Fire Station: Relocate Facility--Preliminary

plans and working drawings  . . . 104,000

(10) 30.20.030-Harts Mills Forest Fire Station: Relocate
Facility--Acquisition  . . . 172,000

(11) 30.20.040-Manton Forest Fire Station: Relocate
Facility--Acquisition  . . . 147,000

(12) 30.20.045-Weaverville Forest Fire Station: Relocate
Facility--Acquisition  . . . 208,000

(13) 30.20.070-Truckee Forest Fire Station: Relocate
Facility--Construction  . . . 1,100,000

(14) 30.20.075-Tehama-Glenn Ranger Unit Headquarters--Acquisition
                                . . . 160,000

(15) 30.20.090-Alder Conservation Camp: Replace Wastewater and
Water System/Construct Access Road--Preliminary plans  . . . 111,000

(16) 30.30.030-Riverside Ranger Unit Headquarters: Replace
Emergency Command Center--Construction and equipment  . . .
1,741,000

(17) 30.30.035-San Bernardino Ranger Unit Headquarters: Replace
Emergency Command Center--Construction and equipment  . . .
1,591,000

(18) 30.30.045-Hesperia Forest Fire Station: Relocate
Facility--Preliminary plans and working drawings  . . . 114,000

(19) 30.30.050-Ramona Air Attack Base: Replace
Facility--Construction and equipment  . . . 2,291,000

(20) 30.30.060-Hemet-Ryan Air Attack Base: Replace
Facility--Preliminary plans and working drawings  . . . 330,000

(21) 30.30.065-San Marcos Forest Fire Station: Relocate
Facility--Acquisition  . . . 222,000

(22) 30.30.070-Valley Center Forest Fire Station: Relocate
Facility--Acquisition  . . . 368,000

(23) 30.30.110-Owens Valley Conservation Camp: Expand
Wastewater System/Construct Apparatus Building--Preliminary plans
and working drawings  . . . 84,000

(24) 30.30.130-San Bernardino Ranger Unit
Headquarters--Acquisition  . . . 500,000

(25) 30.40.010-Piedra Forest Fire Station--Acquisition  . . . 60,000

(26) 30.40.015-Sonora Forest Fire Station: Relocate
Facility--Acquisition  . . . 322,000

(27) 30.40.020-Batterson Forest Fire Station: Relocate
Facility--Preliminary plans and working drawings  . . . 103,000

(28) 30.40.035-Sand Creek Forest Fire Station: Relocate
Facility--Acquisition  . . . 223,000

(29) 30.40.040-Hammond Forest Fire Station: Relocate
Facility--Preliminary plans and working drawings  . . . 114,000

(30) 30.40.055-Coalinga Forest Fire Station: Relocate
Facility--Construction and equipment  . . . 1,579,000

(31) 30.50.010-Aviation Management Unit: Relocate Facility--Study
. . . 148,000

(32) 30.60.035-Statewide: Construct Telecommunication Towers and
Vaults, Phase 2--Preliminary plans, working drawings, and
construction  . . . 9,148,000

(33) 30.80-Minor Capital Outlay  . . . 6,465,000

Provisions:

1. The funds appropriated in Schedule (13) represent 100 percent of
the state's share of acquisition and construction costs for a joint
facility
with the Truckee Fire Protection District. While the project will be
managed by the local district, the project is subject to the review
of the
State Public Works Board and requires authorization to proceed to bid

by the Department of Finance. Funds may also be used by the
Department of Forestry and Fire Protection or Department of General
Services for project monitoring

2. The funds appropriated by Schedules (15), (23) and (33) of this
item include funding for construction and preconstruction activities,

including, but not limited to, study, site search, acquisition,
environmental documents, preliminary plans, working drawings,
equipment, and other costs relating to the design and construction of

facilities, to be performed by Department of Forestry and Fire
Protection personnel in completion of the projects.

3. Funds appropriated in Schedule (31) include funds for development
of program criteria for the Aviation Management Program facility
needs. Prior to commencing with the balance of the study, the
Department of Forestry and Fire Protection shall submit the criteria
to
the Department of Finance for review and concurrence.

4. The funds appropriated in Schedule (32) of this item only may be
expended upon completion by the Department of Forestry and Fire
Protection of a master plan for the repair and replacement of its
communication towers and vaults. The Department of Forestry and
Fire Protection shall submit this master plan to the chairpersons of
the
committees, and appropriate subcommittees thereof, in each house of
the Legislature that consider the Budget Bill, and the Chairperson of

the Joint Legislative Budget Committee. The Director of the
Department of Forestry and Fire Protection shall, no sooner than 30
days after submission of the master plan, notify the chairs of these
legislative committees of the intention of the department to initiate
the
design process. 

3540-301-0928--For capital outlay, Department of Forestry and Fire
Protection, payable from the Forest Resources Improvement Fund  .
. . 5,700,000

(1) 30.10.145 Jackson State Forest--Acquisition  . . . 5,000,000

(2) 30.10.150 Soquel Demonstration State Forest--Acquisition  . . .
700,000 

3540-401--Of the amount appropriated to the Special Fund for
Economic Uncertainties, the Director of Finance may allocate a
sufficient amount, not to exceed ten million dollars ($10,000,000),
to
the Department of Forestry and Fire Protection for emergency fire
suppression for the 1998-99 fiscal year.

3540-402--In the event the bonds authorized for the project scheduled

in Item 3540-301-660, Budget Act of 1995, as reappropriated by Item
3540-490, Budget Act of 1996, are not sold, the Department of
Forestry and Fire Protection shall commit a sufficient portion of its

support appropriation provided for in this Budget Act to repay any
loans from the Pooled Money Investment Account. It is the intent of
the Legislature that this commitment shall be included in future
Budget Acts until outstanding loans are repaid either through the
sale
of bonds or from an appropriation.

3540-490--Reappropriation, California Department of Forestry and
Fire Protection. Notwithstanding any other provision of law, the
balances of the amount appropriated in the following citations are
reappropriated to the Department of Forestry and Fire Protection for
the purposes and subject to the limitations, unless otherwise
specified,
provided for in those appropriations:

0001--General Fund

(1) Item 3540-301-001, Schedule (6), Budget Act of 1995 (Ch. 303,
Stats. 1995), 30.10.070--Mt. St. Helena Lookout and Radio Vault:
Acquire Leased Site--Acquisition.

(2) Item 3540-301-001, Schedule (7), Budget Act of 1995 (Ch. 303,
Stats. 1995), 30.10.075--Castle Rock Forest Fire Station:
Relocation--Acquisition, preliminary plans, working drawings,
construction, and equipment.

3560-001-0001--For support of State Lands Commission  . . .
9,414,000

Schedule:

(a) 10-Mineral Resources Management  . . . 6,269,000

(b) 20-Land Management  . . . 6,619,000

(c) 30.01-Executive and Administration  . . . 2,694,000

(d) 30.02-Distributed Administration  . . . -2,694,000

(e) 40-Marine Facilities Management   . . . 4,733,000

(f) Reimbursements  . . . -3,144,000

(g) Amount payable from the Oil Spill Prevention and Administration
Fund (Item 3560-001-0320)  . . . -5,063,000

Provisions:

1. Notwithstanding subdivision (d) of Section 4 of Chapter 138 of the

Statutes of 1964, 1st Extraordinary Session, all commission costs for

administering Long Beach Tidelands, exclusive of any Attorney
General charges, shall be included in revenues deposited into the
General Fund pursuant to paragraph (1) of subdivision (a) of Section
6217 of the Public Resources Code.

2. All costs incurred to manage state school lands shall be deducted
from the revenues produced by those lands and deposited into the
General Fund pursuant to Section 24412 of the Education Code.

3560-001-0320--For support of State Lands Commission, for payment
to Item 3560-001-0001, payable from the Oil Spill Prevention and
Administration Fund  . . . 5,063,000

Provisions:

1. Funds appropriated by this item shall not be expended to monitor
or
inspect marine bunkering operations from barges or any marine
lightering operations.

3580-001-0001--For support of Seismic Safety Commission  . . .
782,000

Schedule:

(a) 10-Seismic Safety Commission  . . . 1,124,000

(b) Reimbursements  . . . -75,000

(c) Amount payable from the Earthquake Safety and Public Buildings
Rehabilitation Fund of 1990 (Item 3580-011-0768)  . . . -267,000

3580-011-0768--For support of Seismic Safety Commission, for
payment to Item 3580-001-0001, payable from the Earthquake Safety
and Public Buildings Rehabilitation Fund of 1990  . . . 267,000

3600-001-0001--For support of Department of Fish and Game, for
payment to Item 3600-001-0200  . . .  17,685,000 
 21,013,000 

Provisions:

1. Of the funds appropriated in this item, $2,100,000 is available
for
expenditure for the sediment dredging project at the Upper Newport
Bay Ecological Reserve.

3600-001-0140--For support of Department of Fish and Game, for
payment to Item 3600-001-0200, payable from the California
Environmental License Plate Fund  . . . 11,413,000

Provisions:

1. Of the funds appropriated by this item, $500,000 is for
reimbursement to the University of California at Santa Barbara for a
Natural Center for Ecological Analysis and Synthesis.

3600-001-0200--For support of Department of Fish and Game payable
from the Fish and Game Preservation Fund  . . .  78,633,000

 79,194,000 

Schedule:

(a) 10-Enforcement of Laws and Regulations  . . . 35,935,000

(b) 15-Legal Services  . . . 640,000

(c) 35-Wildlife and Natural Heritage Management  . . . 
43,089,000 
 46,238,000 

(d) 55-Fisheries Management  . . .  86,555,000 
 87,705,000 

(e) 60-Environmental Services  . . .  18,733,000 
 18,732,000 

(f) 65-Oil Spill Prevention and Response Program  . . . 17,541,000

(g) 70.01-Administration  . . . 25,624,000

(h) 70.02-Distributed Administration  . . . -25,624,000

(i) Reimbursements  . . .  -19,994,000 
 -20,074,000 

(j) Amount payable from the General Fund (Item 3600-001-0001)  . .
.  -17,685,000 
 -21,013,000 

(k) Amount payable from the California Environmental License Plate
Fund (Item 3600-001-0140)  . . . -11,413,000

(l) Amount payable from the Fish and Wildlife Pollution Account
(Item 3600-001-0207)  . . . -1,483,000

(m) Amount payable from the Waterfowl Habitat Preservation
Account, Fish and Game Preservation Fund (Item 3600-001-0211)  .
. . -200,000

(n) Amount payable from the Public Resources Account, Cigarette and
Tobacco Products Surtax Fund (Item 3600-001-0235)  . . . 
-6,485,000 
 -6,695,000 

(o) Amount payable from the Oil Spill Prevention and Administration
Fund (Item 3600-001-0320)  . . . -18,027,000

(p) Amount payable from the Oil Spill Response Trust Fund (Item
3600-001-0321)  . . . -188,000

(q) Amount payable from the Environmental Enhancement Fund (Item
3600-001-0322)  . . . -100,000

(s) Amount payable from the Salmon and Steelhead Trout Restoration
Account (Item 3600-001-0384)  . . . -8,000,000

(t) Amount payable from the Central Valley Project Improvement
Subaccount (Item 3600-001-0404)  . . . -12,189,000

(u) Amount payable from the California Wildlife, Coastal, and Park
Land Conservation Fund of 1988 (Item 3600-001-0786)  . . .
-1,300,000

(v) Amount payable from the Federal Trust Fund (Item 3600-0010890)
. . .  -26,537,000 
 -26,656,000 

(w) Amount payable from the Renewable Resources Investment Fund
(Item 3600-001-0940)  . . . -259,000

Provisions:

1. The funds appropriated by this item may be increased with the
approval of, and under the conditions set by, the Department of
Finance to meet current obligations proposed to be funded in
Schedules (i) and (v). The funds appropriated by this item shall not
be
increased until the Department of Fish and Game has a valid contract,

signed by the client agency, that provides sufficient funds to
finance
the increased authorization. This increased authorization may not be
used to expand services or create new obligations.

  Reimbursements received under Schedules (i) and (v) shall be used
in repayment of any funds used to meet current obligations pursuant
to this provision.

2. Of the funds appropriated by Schedule (i), $1,500,000 shall be
available in accordance with Chapter 851 of the Statutes of 1991.

3. Of the funds appropriated in this item, $203,000 is for
reimbursement to the State Department of Health Services for
shellfish
monitoring activities.

4. If federal reimbursements are received for the Steelhead Trout
Management Program, the Department of Finance may authorize an
augmentation of Item 3600-001-0890 and reduce an equal amount in
savings from this item. The Department of Finance shall notify the
chairperson of the fiscal committee of each house of the legislature
and the Chairperson of the Joint Legislative Budget Committee within
30 days of the authorization. 

5. The Department of Fish and Game shall not expend any funds
appropriated by this item on a proposed reorganization of the
department unless, at least 30 days prior to that expenditure, the
department submits a report on the reorganization to the Joint
Legislative Budget Committee. The report shall contain all of the
following information:

(a) A review of current roles and responsibilities of the State Fish
and
Game Commission and recommendations on how to strengthen the
independent oversight role of the commission, based upon the
principles of ecological conservation and best available scientific
and
biological information.

(b) A review of the department's current funding sources and
recommendations for how to reduce its dependence on fees from
hunting and fishing activities in order to avoid any conflict between

the competing goals of wildlife management and resource protection,
and to strengthen its mission as a steward for the state natural
resources.

(c) A review of the department's current strategic plan and
recommendations on how to strengthen and reorient its mission toward
wildlife protection, ecological conservation, and preservation of
biological diversity.

(d) A review of the department's current staffing of wildlife
biologists
and recommendations  for how to increase the number of trained,
independent conservation biologists within the department.

(e) A review of the department's current enforcement program and
recommendations for strengthening enforcement of the laws within its
jurisdiction.

(f) A review of the department's current programs to encourage public

participation and recommendations on how to improve these programs
to improve public involvement in department activities.

(g) A review of the department's current reorganization proposal as
it
pertains to bioregions and recommendations for new administrative
and planning structures which reflect the state's bioregions, such as

those contained in the publication entitled Life on the Edge (1994).

 

5. The Legislative Analyst and the Department of Fish and Game
jointly shall identify the specific amount of funds being used for
the
department's reorganization plan, including funds being redirected as

a result of the reorganization. Of the amount appropriated by this
item,
the amount identified by the Legislative Analyst and the department
may not be expended sooner than 90 days after the department submits
a report to the Joint Legislative Budget Committee on the department'
s
reorganization as described in the Supplemental Report of the Budget
Act of 1998, unless the Joint Legislative Budget Committee approves
a sooner time.

6. The funds appropriated by Schedule (s) of this item only may be
expended on projects for which the department makes a finding that
there is a reasonable assurance that the projects will not be
degraded
by subsequent land use activities within the watershed.

7. The funds appropriated by Schedule (s) of this item may not be
used
to repair damage to streambeds or stream corridors, caused by a
violation of the Z'berg-Nejedly Forest Practice Act of 1973 (Article
1
(commencing with Section 4511) of Chapter 8 of Part 2 of Division 4
of the Public Resources Code) or Section 1603 of the Fish and Game
Code.

8. A mandatory riparian "no cut" buffer equivalent to 1
site-potential
tree on Class I streams, and an equivalent buffer of 2/3 the height
of
the site-potential tree on Class II streams shall be maintained for
projects on state or federally owned land funded from the
appropriation by Schedule (s) of this item, within the watershed
where
the project is located.

9. Of the funds appropriated by Schedule (d), $400,000 is for
reimbursement to the California Conservation Corps for salmon
habitat restoration projects that are mutually agreed to by the Corps

and the department.

10. Of the funds appropriated by Schedule (d), up to $120,000 can be
used to support consultant contracts for salmon and steelhead trout
restoration watershed coordinators to assist in the implementation of

Section 6217.1 of the Public Resources Code or for contract
management. 

3600-001-0207--For support of the Department of Fish and Game, for
payment to Item 3600-001-0200, payable from the Fish and Wildlife
Pollution Account   . . . 1,483,000

3600-001-0211--For support of Department of Fish and Game, for
payment to Item 3600-001-0200, payable from the Waterfowl Habitat
Preservation Account, Fish and Preservation Fund  . . . 200,000

3600-001-0235--For support of Department of Fish and Game, for
payment to Item 3600-001-0200, payable from the Public Resources
Account, Cigarette and Tobacco Products Surtax Fund  . . . 
6,485,000 
 6,695,000 

3600-001-0320--For support of Department of Fish and Game, for
payment to Item 3600-001-0200, payable from the Oil Spill Prevention
and Administration Fund  . . . 18,027,000

3600-001-0321--For support of Department of Fish and Game, for
payment to Item 3600-001-0200, payable from the Oil Spill Response
Trust Fund  . . . 188,000

Provisions:

1. Notwithstanding Chapter 7.4 (commencing with Section 8670.1) of
Division 1 of Title 2 of the Government Code, the appropriation made
by this item shall not result in the imposition of uniform oil spill
response fees.

3600-001-0322--For support of Department of Fish and Game, for
payment to Item 3600-001-0200, payable from the Environmental
Enhancement Fund  . . . 100,000

3600-001-0384--For Department of Fish and Game, for payment to
Item 3600-001-0200, payable from the Salmon and Steelhead Trout
Restoration Account   . . . 8,000,000

3600-001-0404--For support of Department of Fish and Game, for
payment to Item 3600-001-0200, payable from the Central Valley
Project Improvement Subaccount   . . . 12,189,000

3600-001-0786--For support of Department of Fish and Game, for
payment to Item 3600-001-0200, payable from the California Wildlife,
Coastal, and Park Land Conservation Fund of 1988  . . . 1,300,000

Provisions: 

1. The unexpended funds from Public Resources Code Section 5907,
paragraph (1) of subdivision (e) shall be expended in accordance with

the Plan of Expenditure submitted by the Department of Fish and
Game to the Legislature as part of the materials supporting the
1998-99 Budget, pursuant to Public Resources Code Section 5922.

2. This plan constitutes the department's plan for expenditure of the

unexpended balance and is hereby adopted by the Legislature in
accordance with the requirements of Public Resources Code Section
5922.  

1. The funds appropriated by this item shall not be expended until
approval by the Legislature of a plan for their expenditure in
accordance with Section 5922 of the Public Resources Code. 

3600-001-0890--For support of Department of Fish and Game, for
payment to Item 3600-001-0200, payable from the Federal Trust Fund
. . .  26,537,000 
 26,656,000 

3600-001-0940--For support of Department of Fish and Game, for
payment to Item 3600-001-0200, payable from the Renewable
Resources Investment Fund  . . . 259,000 

3600-002-0001--For support of Department of Fish and Game  . . .
3,320,000

Provisions:

1. Of the amount appropriated by this item, $3,300,000, consisting of

$1,800,000 from the General Fund and $1,500,000 from authorized
reimbursements, is for expenditure for the dredging project at the
Upper Newport Bay Ecological Reserve.

2. Of the amount appropriated by this item, $20,000 is for the Suisun

Resource Conservation District mosquito abatement project.

3600-002-0140--For support of Department of Fish and Game,
payable from the California Environmental License Plate Fund  . . .
786,000

Provisions:

1. Of the amount appropriated by this item, $500,000 is for the Santa

Rosa Creek Restoration Program.

2. Of the amount appropriated by this item, $286,000 is for the San
Diego County Sweetwater Reservoir Fishing Facility.

3600-002-0320--For support of Department of Fish and Game,
payable from the Oil Spill Prevention and Administration Fund  . . .

1,800,000

Provisions:

1. Of the amount appropriated by this item, $1,800,000 is for the
Santa
Barbara Emergency Operations & Oil Spill Response Center. 

3600-011-0001--For support of Department of Fish and Game
(reimbursement of free fishing licenses), for transfer to the Fish
and
Game Preservation Fund  . . . 17,000 

3600-101-0001--For local assistance, Department of Fish and Game,
Program 35-Wildlife and Natural Heritage Management Program  . .
. 1,600,000

Provisions:

1. No funds may be expended pursuant to this item for the Natural
Community Conservation Program, unless the funds are allocated to
approved Natural Community Conservation Plans in Orange and San
Diego Counties or unless a statute is enacted that establishes
scientific
and procedural standards for natural community conservation plans.


3600-101-0207--For local assistance, Department of Fish and Game,
Program 65-Oil Spill Prevention and Response Program, payable from
the Fish and Wildlife Pollution Account  . . . 33,000

3600-101-0320--For local assistance, Department of Fish and Game,
Program 65--Oil Spill Prevention and Response, payable from the Oil
Spill Prevention and Administration Fund  . . . 2,459,000 

3600-101-0890--For local assistance, Department of Fish and Game,
Program 35-Wildlife and Natural Heritage Management Program,
payable from the Federal Trust Fund  . . . 2,000,000

Provisions:

1. No funds may be expended pursuant to this item for the Natural
Community Conservation Program, unless the funds are allocated to
approved Natural Community Conservation Plans in Orange and San
Diego Counties or unless a statute is enacted that establishes
scientific
and procedural standards for natural community conservation plans.


3600-301-0200--For capital outlay, Department of Fish and Game,
payable from the Fish and Game Preservation Fund  . . . 1,239,000

Schedule:

(1) 90.07.100-Minor Projects  . . . 1,493,000

(2) 90.88.020-Project Planning  . . . 50,000

(3) 90.98.001-Napa Sonoma Marsh WLA Water Control
Structures--Preliminary Plans, Working Drawings, Construction  . . .

145,000

(4) Reimbursements-Minor Projects  . . . -449,000

Provisions:

1. Of the amount appropriated in Schedule (1) of this item, $449,000
shall be used for purposes consistent with the requirements of the
Natural Resources Infrastructure Fund and the Habitat Conservation
Fund.

2. Of the funds appropriated by Schedule (1) of this item, $449,000
shall be available in accordance with Chapter 851 of the Statutes of
1991.

3. The funds appropriated in Schedule (3) of this item are to be
available in accordance with the agreement between the Department
of Fish and Game and Ducks Unlimited, Inc., a nonprofit corporation.

Ducks Unlimited will provide project funding of $155,000.
Notwithstanding the Public Contract Code, Ducks Unlimited will
provide all engineering, design, and construction services for this
project subject to the authority of the State Public Works Board.

4. The funds appropriated in Schedule (3) of this item shall not be
expended until the Department of Fish and Game submits to the Joint
Legislative Budget Committee certification by the Department of
General Services that the estimated cost of the water control
structures
to be constructed under this appropriation is $300,000 or more. Costs

to be certified pursuant to this provision shall only include the
costs of
preliminary plans, working drawings, and construction.

5. The funds appropriated in Schedule (3) of this item shall not be
augmented.

3600-301-0786--For capital outlay, Department of Fish and Game,
payable from the California Wildlife, Coastal and Park Land
Conservation Fund of 1988  . . . 550,000

Schedule:

(2) 90.98.004-Heenan Lake Water Right--Acquisition  . . . 550,000

Provisions:

3. The funds appropriated in this item shall not be expended until
approval by the Legislature of a plan for their expenditure in
accordance with Section 5922 of the Public Resources Code.

3600-490--Reappropriation, Department of Fish and Game. The
balances of the appropriations provided for in the following
citations
are reappropriated for the purposes and subject to the limitations,
unless otherwise specified, provided for in those appropriations:

0200--Fish and Game Preservation Fund.

(1) Item 3600-301-0200(1) Budget Act of 1997. 90.07.100 Minor
Projects-Utilities and Road, Chino Fish and Wildlife Base;
Reconstruct Bird Exclosure, Fish Springs Hatchery; provided funds
may be used for construction activities including, but not limited
to,
costs related to work performed by Department of Fish and Game
personnel.

0320--Oil Spill Prevention and Administration Fund.

(1) Item 3600-301-0320(1), Budget Act of 1997. 90.07.100--Minor
Projects-Storage Shed

3640-001-0140--For support of the Wildlife Conservation Board,
payable to Item 3640-001-0447, from the California Environmental
License Plate Fund  . . . 276,000

3640-001-0262--For support of the Wildlife Conservation Board, for
payment to Item 3640-001-0447, payable from the Habitat
Conservation Fund  . . . 3,040,000

Provisions:

1. Of the amount appropriated by this item, $315,000 shall be
available to the Wildlife Conservation Board for administrative costs

associated with the California Wildlife Protection Act of  1990, the
Unallocated Account (Cigarette and Tobacco Products Surtax Fund)
and the Habitat Conservation Fund.

2. Of the amount appropriated by this item, $2,725,000 shall be
available to the Department of Fish and Game to fund:

(a) $725,000 for the Yolo Bypass Wildlife Area, consistent with the
requirements of the Natural Resources Infrastructure Fund and the
Habitat Conservation Fund.

(b) $2,000,000 for the Comprehensive Wetlands Habitat Program,
consistent with the requirements of the Natural Resources
Infrastructure Fund, the Unallocated Account (Cigarette and Tobacco
Products Surtax Fund) and the Habitat Conservation Fund.

3640-001-0447--For support of the Wildlife Conservation Board,
payable from the Wildlife Restoration Fund  . . . 733,000

Schedule:

(a) 10-Wildlife Conservation Board  . . . 4,049,000

(b) Amount payable from the California Environmental License Plate
Fund (Item 3640-001-0140)  . . . -276,000

(c) Amount payable from the Habitat Conservation Fund (Item
3640-001-262)  . . . -3,040,000

3640-011-0383--For transfer by the State Controller to the Habitat
Conservation Fund, payable from the Natural Resources Infrastructure
Fund  . . . (1,446,000)

Provisions:

1. The funds transferred by this item shall be used for purposes
consistent with the requirements of the Natural Resources
Infrastructure Fund and the Habitat Conservation Fund.

3640-301-0001--For capital outlay, Wildlife Conservation Board  . . .

 75,000,000 
 39,938,000 

Schedule:

 (1) 80.10.060-Open-space and habitat acquisition, and
restoration
for threatened and endangered species  . . . 75,000,000

  (1) 80.10.060-Acquisition and restoration for habitat
or
open space  . . . 39,938,000 

Provisions:

1. No funds may be expended pursuant to this item for the 
natural
Communities    Natural Community   Conservation
Program unless they are allocated to approved Natural Community
Conservation Plans in Orange and San Diego Counties or unless a
statute is enacted which establishes scientific and procedural
standards
for natural community conservation plans.

2. Priority shall be placed on acquisitions which contribute to the
restoration of habitat for threatened and endangered species.

3. The funds appropriated by this item are provided in accordance
with
the provisions of the Wildlife Conservation Law of 1947 and,
therefore, shall not be subject to review by the State Public Works
Board.

4. The amount appropriated by this item is available for expenditure
for capital outlay or local assistance.

 5. Of the funds appropriated by this item $10,955,000 is
available
to the Wildlife Conservation Board to fund the following:

(a) $250,000 for the North Bay Riparian Station.

(b) $2,000,000 for the Mattole Redwoods acquisition.

(c) $200,000 for the Cache Creek Nature Center.

(d) $500,000 for the Stough Canyon Nature Center.

(e) $100,000 for the Sky Ranch acquisition.

(f) $155,000 for the Newhall Bike Trail.

(g) $200,000 for the Clayton Ranch acquisition.

(h) $450,000 for the Mid-Peninsula Trail.

(i) $5,000,000 for the Rim of the Valley.

(j) $1,000,000 for the Bombay Project in the Santa Cruz Greenbelt.

(k) $100,000 for habitat restoration on the Palos Verdes Peninsula.

(l) $1,000,000 for the Inlands Wetlands Conservation Program. 

3640-301-0262--For capital outlay, Wildlife Conservation Board,
payable from the Habitat Conservation Fund  . . . 17,960,000

Provisions:

1. The funds appropriated by this item for the purposes described in
Provisions 3 and 4 of this item are provided in accordance with the
Wildlife Conservation Law of 1947 and, therefore, shall not be
subject
to Public Works Board review.

2. The amount appropriated in this item is available for expenditure
for
capital outlay or local assistance.

3. Of the amount appropriated by this item, $449,000 shall be
available to the Department of Fish and Game for minor capital outlay

projects consistent with the requirements of the Natural Resources
Infrastructure Fund, the Habitat Conservation Fund and in accordance
with Chapter 851, Statutes of 1991.

4. Of the amount appropriated by this item, $17,511,000 shall be
available to the Wildlife Conservation Board to fund:

(a) $6,400,000 for land acquisition for the Natural Community
Conservation Planning (NCCP) Program as defined in Chapter 10
(commencing with Section 2800) of Division 3 of the Fish and Game
Code, consistent with the requirements of the Natural Resources
Infrastructure Fund and the Habitat Conservation Fund. Expenditure
of these funds shall be limited to projects that are part of approved

NCCP plans in San Diego and Orange Counties.

(b) $1,000,000 for the Inland Wetlands Conservation Program
pursuant to Section 1411 of the Fish and Game Code, and consistent
with the requirements of the Unallocated Account (Cigarette and
Tobacco Products Surtax Fund) and the Habitat Conservation Fund.

(c) $10,111,000 for wildlife habitat acquisition projects, consistent

with the requirements of the Unallocated Account (Cigarette and
Tobacco Products Surtax Fund), the Natural Resources Infrastructure
Fund and the Habitat Conservation Fund.

3640-301-0447--For capital outlay, Wildlife Conservation Board,
payable from the Wildlife Restoration Fund, in lieu of the
appropriation made by the Wildlife Conservation Law of 1947  . . .
5,898,000

Schedule:

(1) 80.10.010-Minor Projects  . . . 1,198,000

(2) 80.10.030-Land Acquisitions  . . . 200,000

(3) 80.10.050-NCCP Land Acquisition  . . . 4,500,000

Provisions:

1. The funds appropriated in this item are provided in accordance
with
the provisions of the Wildlife Conservation Law of 1947 and,
therefore, shall not be subject to Public Works Board review.

2. The amount appropriated in this item is available for expenditure
for
capital outlay or local assistance.

3640-301-0516--For capital outlay, Wildlife Conservation Board,
payable from the Harbors and Watercraft Revolving Fund  . . . 325,000


Schedule:

(a) 80.10.030-Land Acquisitions  . . . 325,000

3640-311-0001--For transfer by the State Controller to the Habitat
Conservation Fund  . . . 7,401,000

Provisions:

1. The funds transferred by this item shall be used for purposes

authorized by    consistent with the requirements of
 the
Habitat Conservation Fund.

3640-311-0383--For transfer by the State Controller to the Habitat
Conservation Fund, payable from the Natural Resources Infrastructure
Fund  . . . (9,298,000)

Provisions:

1. The funds transferred by this item shall be used for purposes
consistent with the requirements of the Natural Resources
Infrastructure Fund and the Habitat Conservation Fund.

3680-001-0516--For support of Department of Boating and
Waterways, payable from the Harbors and Watercraft Revolving Fund
. . .  11,656,000 
 12,506,000 

Schedule:

(a) 10-Boating Facilities  . . . 8,700,000

(b) 20-Boating Operations  . . .  4,862,000 
 5,712,000 

(c) 30-Beach Erosion Control  . . . 262,000

(d) 40.01-Administration  . . . 1,855,000

(e) 40.02-Distributed Administration  . . . -1,855,000

(f) Reimbursements  . . . -15,000

(g) Amount payable from the Federal Trust Fund (Item
3680-001-0890)  . . . -2,153,000

Provisions:

1. Notwithstanding Section 85.2 of the Harbors and Navigation Code,
$262,000 of the funds appropriated by this item shall be expended for

support of the Department of Boating and Waterways beach erosion
control program. 

2. Of the funds appropriated by this item, $250,000 is for a boating
gas tax study. The study shall be performed in accordance with the
following:

(a) Notwithstanding Section 85.2 of the Harbors and Navigation Code
and Section 8352.4 of the Revenue and Taxation Code, funds
appropriated by this item shall be made available to the Department
of
Boating and Waterways for the purpose of contracting for an update
or revision, or both, of the formula and method of the December 1972
Final Report on the State Gasoline Tax Paid on Gasoline Used in
Propelling Boats During the 1971 Calendar Year, prepared for the
purpose of estimating the amount of motor vehicle fuel used or usable

per annum in propelling vessels.

(b) The contractor shall be required to consult with the Department
of
Boating and Waterways, the Department of Finance, the Department
of Motor Vehicles, the Department of Transportation, and the State
Board of Equalization. Proposals in response to the Request for
Proposal shall be approved by the Department of Finance by July 1,
1999. Each proposal shall specify sampling methodologies in detail.
Upon approval of a research design by the Department of Finance, the
contractor shall be required to submit a final report not later than
July
1, 2000.

3. Of the funds appropriated by this item, $400,000 is for a grant
for
the San Francisco Fisherman's Wharf Harbor Pollution Prevention and
Water Quality project.

4. Of the funds appropriated by this item, $200,000 shall be used for

a contract for the development of a business plan for the operation
of
the Spud Point Marina. 

3680-001-0890--For support of Department of Boating and
Waterways, for payment to Item 3680-001-0516, payable from the
Federal Trust Fund  . . . 2,153,000

3680-101-0516--For local assistance, Department of Boating and
Waterways, payable from the Harbors and Watercraft Revolving Fund
. . .  39,138,000 
 41,638,000 

Schedule:

(a) 10-Boating Facilities  . . . 28,591,000

Launching Facility Grants  . . . (12,318,000)

1) Anderson Lake  . . . (400,000)

2) Lake Cachuma  . . . (1,000,000)

3) Lake Casitas  . . . (150,000)

4) Clearlake Oaks  . . . (140,000)

5) Donner Lake  . . . (308,000)

6) Don Pedro  . . . (187,000)

7) Eastside Reservoir  . . . (3,700,000)

8) El Capitan Reservoir  . . . (480,000)

9) Elkhorn Launching  . . . (100,000)

10) Floating Restrooms  . . . (500,000)

11) Hell Hole  . . . (186,000)

12) Hensley Lake  . . . (91,000)

13) Huntington Lake  . . . (270,000)

14) Long Beach (Davies)  . . . (450,000)

15) Mission Bay-Ski Beach   . . . (521,000)

16) Moss Landing  . . . (500,000)

17) Oceanside  . . . (2,000,000)

18) Lake Piru  . . . (100,000)

19) Ramp Repairs  . . . (500,000)

20) Rollins Lake   . . . (100,000)

21) Santa Barbara  . . . (408,000)

22) Sardine Lake  . . . (77,000)

23) Signs   . . . (50,000)

24) Vessel Pumpout  . . . (100,000)

Public Small Craft Harbors Loans  . . . (8,676,000)

1) Eastside Reservoir  . . . (1,499,000)

2) Emergency Loans  . . . (200,000)

3) Long Beach Shoreline  . . . (700,000)

4) Long Beach Basin 8  . . . (450,000)

5) Marina del Rey  . . . (227,000)

6) Planning Loans  . . . (200,000)

7) Santa Monica Breakwater  . . . (2,200,000)

8) South Beach Harbor  . . . (3,000,000)

9) Ventura Harbor Village Marina  . . . (200,000)

Private Marina Loans  . . . (6,000,000)

Clean Vessel Act Grant Program  . . . (1,253,000)

Aquatic Weed Control Project (Lake County)  . . . (44,000)

Boating Trails  . . . (300,000)

(b) 20-Boating Operations  . . . 9,975,000

(bx) 30-Beach Erosion Control  . . .  4,000,000 
 6,500,000 

(c) Amount payable from the Abandoned Watercraft Abatement Fund
 (Item 3680-101-0557)    (Item 3680-101-0577)

. . . -1,000,000

(d) Amount payable from the Federal Trust Fund (Item
3680-101-0890)  . . . -2,428,000

Provisions:

1. Notwithstanding Section 16304.1 of the Government Code, funds
identified in Schedule (a) for Private Marina Loans shall be
available
for liquidation for three years following the last day the
appropriation
is available for encumbrance upon certification to the Department of
Finance by the Department of Boating and Waterways that exigent
circumstances exist resulting in projects delays.

2. Of the funds appropriated in Schedule (b), $8,100,000 is for
boating
safety and enforcement programs pursuant to Section 663.7 of the
Harbors and Navigation Code.

3. Of the funds appropriated for the Clean Vessel Act Grant Program
in Schedule (a), the Department of Boating and Waterways may
transfer funds between the construction and education programs.

4. Of the amounts appropriated to Redwood City pursuant to Chapter
886, Statutes of 1997, disposal of vessels includes, but is not
limited
to, the identification, notification, removal, storage, and disposal
of
abandoned, wrecked, or dismantled vessels, or parts thereof, or any
partially submerged object and related debris, and measures
undertaken with regard to code enforcement to prevent future
abandonment of vessels. 

5. Of the funds appropriated in Schedule (bx) of this item,
$2,500,000
shall be expended for priority beach erosion management and
nourishment projects.

6. Of the funds appropriated in Schedule (bx) of this item,
$4,000,000
is available for a grant to the San Diego Association of Governments
for project costs associated with the construction of beach
enhancement, restoration, or nourishment of public beaches with
placement of sand on the beach or in the nearshore. The appropriation

shall be limited to the amounts returned to the funds specified in
Item
3680-495 of Section 2.00 of this act. 

3680-101-0577--For local assistance, Department of Boating and
Waterways, for payment to Item 3680-101-0516, payable from the
Abandoned Watercraft Abatement Fund  . . . 1,000,000

3680-101-0890--For local assistance, Department of Boating and
Waterways, for payment to Item 3680-101-0516, payable from the
Federal Trust Fund  . . . 2,428,000

Provisions:

1. Of the amount appropriated by this item, $875,000 shall be for
grants to local governments for boating safety and law enforcement,
15 percent of which shall be allocated according to the department's
discretion, and 85 percent of which shall be allocated by the
department in accordance with the following priorities:

  First--To local governments that are eligible for state aid because
they
are spending all their local boating revenue on boating enforcement
and safety, but are not receiving sufficient state funds to meet
their
calculated need as defined in Section 663.7 of the Harbors and
Navigation Code.

  Second--To local governments that are not spending all local
boating
revenue on boating enforcement and safety, and whose boating
revenue does not equal their calculated need. Local assistance shall
not
exceed the difference between the calculated need and local boating
revenue.

  Third--To local governments whose boating revenue exceeds their
need, but who are not spending sufficient local revenue to meet their

calculated need.

2. Of the amount appropriated by this item, $1,253,000 shall be
available to fund construction and educational programs consistent
with the Clean Vessel Act Grant Program. 

3680-101-0940--For local assistance, Department of Boating and
Waterways, payable from the Renewable Resources Investment Fund
. . . 700,000

Schedule:

(a) 30-Beach Erosion Control  . . . 700,000

Provisions:

1. Of the funds appropriated in Schedule (a) of this item, $700,000
is
available for a grant to the San Diego Association of Governments for

project costs associated with the construction of beach enhancement,
restoration, or nourishment of public beaches with placement of sand
on the beach or in the nearshore. The appropriation shall be limited
to
the amounts that revert to the funds specified in Item 3680-495 of
this
act. 

3680-102-0516--For transfer by the State Controller to the Abandoned
Watercraft Abatement Fund, payable from the Harbors and Watercraft
Revolving Fund  . . . 1,000,000

3680-301-0516--For capital outlay, Department of Boating and
Waterways, payable from the Harbors and Watercraft Revolving Fund
. . . 6,100,000

Schedule:

(1) 50.04.020-Lake Oroville SRA, Spillway: Boat launching
facility--Working drawings   . . . 132,000

(2) 50.10.010-Millerton Lake SRA, Crows Nest Area: Boat Launching
Facility--Preliminary plans  . . . 101,000

(3) 50.19.011-Castaic Lake SRA, East Ramp Area: Boat Launching
Facility--Preliminary plans and working drawings  . . . 249,000

(4) 50.19.030-Pyramid Lake SRA-Emigrant Landing: Boat Launching
Facility--Working drawings  . . . 83,000

(5) 50.33.030-Lake Perris SRA: Areas 6 and 7, Boating Facility
Improvements--Working drawings  . . . 69,000

(6) 50.34.030-Lake Natoma, Nimbus Flat, Boating Instruction and
Safety Center--Preliminary plans  . . . 123,000

(7) 50.37.010-Silver Strand State Beach, Crown Cove: Boat
Instruction and Safety Center--Construction   . . . 1,493,000

(8) 50.99.010-Project Planning  . . . 100,000

(9) 50.99.020-Minor Projects  . . . 3,750,000

Provisions:

1. Funds appropriated in Schedule (8) are available for allocation by

the Department of Finance to be used to develop design information
or cost information for new construction projects for which funds
have
not been appropriated previously, but which are anticipated to be
included in the Governor's Budget for the 1999-2000 or 2000-2001
fiscal year.

3680-490--Reappropriation, Department of Boating and Waterways.
Notwithstanding any other provision of law, the balance of the amount

appropriated in the following citation is hereby reappropriated to
the
Department of Boating and Waterways for the purposes and subject
to the limitations, unless otherwise specified, provided for in that
appropriation: 

0516--Harbors and Watercraft Revolving Fund 

(1) Item 3680-301-0516, Schedule (4) of the Budget Act of 1997 (Ch.
282, Stats. 1997), 50.24.020--San Luis SRA, O'Neill Forebay, Boat
Launching Facility--Construction 

3680-495--Reversion, Department of Boating and Waterways. The
balance, as of June 30, 1998, of the appropriations provided in the
following citation shall revert to the fund balance of the fund from
which the appropriation was made:

(1) Chapter 606, Statutes of 1995, Section 1(a)(1), for a grant to
the
San Diego Association of Governments to pay for costs associated
with the United States Navy Aircraft Carrier Homeporting Project in
the San Diego Harbor. The reversion is limited to $700,000.

(2) Item 3680-101-0516(c), Budget Act of 1996, for a grant to the San

Diego Association of Governments to pay for costs associated with the

United States Navy Aircraft Carrier Homeporting Project in the San
Diego Harbor as described in Chapter 606, Statutes of 1995. The
reversion is limited to $1,650,000.

(3) Item 3680-101-0516(c), Budget Act of 1997, for a grant to the San

Diego Association of Governments to pay for costs associated with the

United States Navy Aircraft Carrier Homeporting Project in the San
Diego Harbor as described in Chapter 606, Statutes of 1995. The
reversion is limited to $1,650,000.

(4) Chapter 928, Statutes of 1997, Section 22, to fund a grant to the

San Diego Association of Governments to pay for costs associated
with the United States Navy Aircraft Carrier Homeporting Beach
Nourishment Project in the San Diego Harbor as described in Chapter
606, Statutes of 1995. The reversion is limited to $700,000. 

3720-001-0001--For support of California Coastal Commission  . . .
8,368,000

Schedule:

(a) 10-Coastal Management Program  . . . 10,558,000

(b) 20-Coastal Energy Program  . . . 526,000

(c) 30.01-Administration  . . . 2,067,000

(d) 30.02-Distributed Administration  . . . -1,244,000

(e) Reimbursements  . . . -465,000

(ex) Amount payable from California Beach and Coastal Enhancement
Account (Item 3720-001-0371)  . . . -66,000

(g) Amount payable from the Federal Trust Fund (Item
3720-001-0890)  . . . -3,008,000

3720-001-0371--For support of California Coastal Commission, for
payment to Item 3720-001-0001, payable from the California Beach
and Coastal Enhancement Account, California Environmental License
Plate Fund  . . . 66,000

3720-001-0890--For support of California Coastal Commission, for
payment to Item 3720-001-0001, payable from the Federal Trust Fund
. . . 3,008,000

3720-101-0001--For local assistance, California Coastal Commission
. . . 500,000

Schedule:

(a) 10-Coastal Management Program  . . . 500,000

3720-101-0371--For local assistance, California Coastal Commission,
payable from California Beach and Coastal Enhancement Account,
California Environmental License Plate Fund  . . . 130,000

Schedule:

(a) 10-Coastal Management Program  . . . 130,000

3720-295-0001--For local assistance, California Coastal Commission,
for reimbursement, in accordance with the provisions of Section 6 of
Article XIII B of the California Constitution or of Section 17561 of
the
Government Code, of the costs of any new program or increased level
of service of an existing program mandated by statute or executive
order, State Controller  . . . 0

Schedule:

(1) 98.01.133.076-Local coastal plans (Ch. 1330, Stats. 1976)  . . .
0

Provisions:

1. Pursuant to Section 17581 of the Government Code, the mandate
identified in the appropriation schedule of this item with an
appropriation of $0 and included in the language of this provision is

specifically identified by the Legislature for suspension during the
1998-99 fiscal year:

(a) Local coastal plans (Ch. 1330, Stats. 1976)

3760-001-0001--For support of the State Coastal Conservancy, for
payment to Item 3760-001-0565   . . . 160,000

Provisions:

1. The funds appropriated by this item only may be expended for
activities associated with the acquisition, enhancement, or
restoration
of wetlands.

3760-001-0565--For support of State Coastal Conservancy, payable
from the State Coastal Conservancy Fund of 1976  . . . 2,776,000

Schedule:

(a) 15--Coastal Resource Development  . . . 2,683,000

(b) 25--Coastal Resource Enhancement  . . . 1,647,000

(c) 90.01--Administration and Support  . . . 1,487,000

(d) 90.02--Distributed Administration  . . . -1,487,000

(e) Reimbursements  . . . -97,000

(f) Amount payable from the General Fund (Item 3760-001-0001)  .
. . -160,000

(g) Amount payable from the Parklands Fund of 1980 (Item
3760-001-0721)  . . . -196,000

(h) Amount payable from the State Coastal Conservancy Fund of 1984
(Item 3760-001-0730)  . . . -454,000

(i) Amount payable from the California Wildlife, Coastal and Park
Land Conservation Fund of 1988 (Item 3760-001-0786)  . . . -471,000

(j) Amount payable from the Federal Trust Fund (Item 3760-0010890)
. . . -176,000

3760-001-0721--For support of the State Coastal Conservancy, for
payment to Item 3760-001-0565, payable from the Parklands Fund of
1980  . . . 196,000

3760-001-0730--For support of the State Coastal Conservancy, for
payment to Item 3760-001-0565, payable from the State Coastal
Conservancy Fund of 1984  . . . 454,000

3760-001-0786--For support of the State Coastal Conservancy, for
payment to Item 3760-001-0565, payable from the California Wildlife,
Coastal and Park Land Conservation Fund of 1988  . . . 471,000

3760-001-0890--For support of the State Coastal Conservancy, for
payment to Item 3760-001-0565, payable from the Federal Trust Fund
. . . 176,000

3760-301-0001--For capital outlay, State Coastal Conservancy  . . .
 34,090,000 
 33,090,000 

Schedule:

 (.1)

  (0.1)   80.93.015-Coastal Resource Development
. .
. 20,000,000

(1) 80.97.060--Natural Community Conservation Planning Program
. . . 5,000,000

(2) 80.97.070--Ocean and Coastal Initiative  . . .  9,090,000

 8,090,000 

Provisions:

1. The conservancy shall not enter into a grant contract with a
nonprofit organization or local government for property acquisition
which provides for either of the following:

(a) A reversionary interest to the state, unless the grant contract
specifies that the property shall not revert to the state without
review
and approval by the conservancy and the State Public Works Board.

(b) A state leasehold interest in property acquired by a nonstate
public
agency with conservancy grant funds, unless the lease terms are
approved by the Director of General Services. Except to the extent
above, the expenditures of funds for grants to public agencies and
nonprofit organizations shall be exempt from State Public Works
Board review.

2. The amount appropriated by this item is available for encumbrance
for either capital outlay or local assistance through fiscal year
2000-01.

3. Of the funds appropriated in Schedule (2) of this item, 
$6,590,000   $5,590,000   may only be expended for
acquisition, enhancement, and restoration of wetlands.

 4. The funds appropriated in Schedule (3) are available for
either
coastal resource development or enhancement.

  4. The funds available in Schedule (0.1) are
available for
activities consistent with Division 21 (commencing with Section
31000) of the Public Resources Code for the following projects: Coast

Dairies, $5,000,000; Bay Area Conservancy, $5,000,000; Imperial
Beach, $219,000; Montezuma Wetlands, $2,000,000; Bolinas Lagoon,
                              $500,000; Paradise Creek Education
Park, $700,000; Moss Landing,
$450,000; Estero Bay, $2,500,000; Caspar State Beach, $1,800,000;
South Spit restoration and enhancement, $500,000; and $1,331,000 for
unspecified projects. 

3760-301-0262--For capital outlay, State Coastal Conservancy,
payable from the Habitat Conservation Fund  . . . 4,000,000

Schedule:

(1) 80.93.025--Coastal Resource Enhancement  . . . 4,900,000

(2) Reimbursements  . . . -900,000

Provisions:

1. The State Coastal Conservancy shall not enter into a grant
contract
with a nonprofit organization or local government for property
acquisition that provides for either of the following:

a. A reversionary interest to the State, unless the grant contract
specifies that the property shall not revert to the State without
review
and approval by the conservancy and the State Public Works Board.

b. A state leasehold interest in property acquired by a nonstate
public
agency with conservancy grant funds, unless the lease terms are
approved by the Director of General Services. Except to the extent
above, the expenditures of funds for grants to public agencies and
nonprofit organizations shall be exempt from State Public Works
Board review.

2. The funds appropriated by this item are available for encumbrance
for either capital outlay or local assistance without regard to
fiscal
year.

3. Of the funds appropriated by this item, $4,000,000 shall be used
for
purposes consistent with the Unallocated Account, Cigarette and
Tobacco Products Surtax Fund and the Habitat Conservation Fund.

3760-301-0565--For capital outlay, State Coastal Conservancy,
payable from the State Coastal Conservancy Fund of 1976  . . .
625,000

Schedule:

(1) 80.93.015--Coastal Resource Development  . . . 1,025,000

(2) 80.97.070--Ocean and Coastal Initiative  . . . 500,000

(3) Reimbursements  . . . -900,000

Provisions:

1. The conservancy shall not enter into a grant contract with a
nonprofit organization or local government for property acquisition
which provides for either of the following:

(a) A reversionary interest to the state, unless the grant contract
specifies that the property shall not revert to the state without
review
and approval by the conservancy and the State Public Works Board.

(b) A state leasehold interest in property acquired by a nonstate
public
agency with conservancy grant funds, unless the lease terms are
approved by the Director of General Services. Except to the extent
above, the expenditures of funds for grants to public agencies and
nonprofit organizations shall be exempt from State Public Works
Board review.

2. The amount appropriated by this item is available for encumbrance
for either capital outlay or local assistance through fiscal year
2000-01.

3760-301-0593--For capital outlay, State Coastal Conservancy,
payable from the Coastal Access Account of the State Coastal
Conservancy Fund of 1976  . . . 225,000

Schedule:

(1) 80.97.070-Ocean and Coastal Initiative  . . . 225,000

Provisions:

1. The conservancy shall not enter into a grant contract with a
nonprofit organization or local government for property acquisition
which provides for either of the following:

(a) A reversionary interest to the state, unless the grant contract
specifies that the property shall not revert to the state without
review
and approval by the conservancy and the State Public Works Board.

(b) A state leasehold interest in property acquired by a nonstate
public
agency with conservancy grant funds, unless the lease terms are
approved by the Director of General Services. Except to the extent
above, the expenditures of funds for grants to public agencies and
nonprofit organizations shall be exempt from State Public Works
Board review.

2. The amount appropriated by this item is available for encumbrance
for either capital outlay or local assistance through fiscal year
2000-01.

3760-301-0890--For capital outlay, State Coastal Conservancy,
payable from the Federal Trust Fund  . . . 2,000,000

Schedule:

(1) 80.93.015-Coastal Resource Development  . . . 1,000,000

(2) 80.93.025-Coastal Resource Enhancement  . . . 1,000,000

Provisions:

1. The State Coastal Conservancy shall not enter into a grant
contract
with a nonprofit organization or local government for property
acquisition that provides for either of the following:

(a) A reversionary interest to the state, unless the grant contract
specified that the property shall not revert to the state without
review
and approval by the State Coastal Conservancy and the Public Works
Board.

(b) A state leasehold acquired by a nonstate public agency with grant

funds of the State Coastal Conservancy, unless the lease terms are
approved by the Director of General Services. Except as specified in
paragraph (a), the expenditure of funds for grants to public agencies

and nonprofit organizations is exempt from the review of the Public
Works Board.

2. The funds appropriated by this item are available for encumbrance
for either capital outlay or local assistance through the 2000-01
fiscal
year.

3760-301-0940--For capital outlay, State Coastal Conservancy,
payable from the Renewable Resources Investment Fund  . . .
2,500,000

Schedule:

(1) 80.97.070-Ocean and Coastal Initiative  . . . 2,500,000

Provisions:

1. The conservancy shall not enter into a grant contract with a
nonprofit organization or local government for property acquisition
which provides for either of the following:

(a) A reversionary interest to the state, unless the grant contract
specifies that the property shall not revert to the state without
review
and approval by the conservancy and the State Public Works Board.

(b) A state leasehold interest in property acquired by a nonstate
public
agency with conservancy grant funds, unless the lease terms are
approved by the Director of General Services. Except to the extent
above, the expenditures of funds for grants to public agencies and
nonprofit organizations shall be exempt from State Public Works
Board review.

2. The amount appropriated by this item is available for encumbrance
for either capital outlay or local assistance through fiscal year
2000-01.

3760-490--Reappropriation, State Coastal Conservancy. The 
unencumbered   balance of the amounts  appropraited

 appropriated   in the following citations are hereby
reappropriated for the purposes and subject to the limitations,
unless
otherwise specified, provided for in those appropriations:

0001--General Fund

(1) Item  3760-301-264    3760-301-164  ,
Schedule
(2), Budget Act of 1993 (Ch. 55, Stats. 1993), as transferred to the
General Fund (Item 3760-801-001) pursuant to Section 16346 of the
Government Code.

80.93.025-Coastal Resource Enhancement, provided that the entire
appropriation is available  to fiscal year 2000-01, inclusive
  
 through June 30, 2001  , and that $296,000 shall continue
to
be available for liquidation through  fiscal year 2016-17,
inclusive
   June 30, 2017  , to allow completion of a
project
monitoring and remediation contract with the U.S. Army Corps of
Engineers  to fiscal year 2016-17, inclusive   
through
June 30, 2017  .

(2) Section 23 of Chapter 928 of the Statutes of 1997.

80.93.015-Coastal Resource Development, provided funds may be
available for encumbrance for either capital outlay or local
assistance
 to fiscal year 1999-2000, inclusive    through
June 30,
2000  .

3790-001-0001--For support of Department of Parks and Recreation,
for payment to Item 3790-001-0392  . . .  107,935,000

 98,088,000 

 Provisions:

1. Of the amount appropriated by this item, $93,000 is to be used for

the California Recreational Trails System update.

2. Of the amount appropriated by this item, $60,000 shall be used to
contract with the Orange County Conservation Corps for El Nino
storm damage repair at state parks and beaches. 

3790-001-0140--For support of Department of Parks and Recreation,
for payment to Item 3790-001-0392, payable from the California
Environmental License Plate Fund  . . . 105,000

3790-001-0235--For support of Department of Parks and Recreation,
for payment to Item 3790-001-0392, payable from the Public
Resources Account, Cigarette and Tobacco Products Surtax Fund  . .
. 11,670,000

3790-001-0263--For support of Department of Parks and Recreation,
for payment to Item 3790-001-0392, payable from the Off-Highway
Vehicle Trust Fund  . . . 14,076,000

3790-001-0392--For support of Department of Parks and Recreation,
payable from the State Park and Recreation Fund  . . . 81,322,000

Schedule:

(a) For support of the Department of Parks and Recreation  . . .

235,366,000 
 225,519,000 

(b) Reimbursements  . . . -14,223,000

(c) Amount payable from the General Fund (Item 3790-001-0001)  .
. . -  107,935,000 
 -98,088,000 

(d) Amount payable from the California Environmental License Plate
Fund (Item 3790-001-0140)  . . . -105,000

(e) Amount payable from the Public Resources Account, Cigarette and
Tobacco Products Surtax Fund (Item 3790-001-0235)  . . . -11,670,000

(f) Amount payable from the Off-Highway Vehicle Trust Fund (Item
3790-001-0263)  . . . -14,076,000

(h) Amount payable from the Winter Recreation Fund (Item
3790-001-0449)  . . . -175,000

(i) Amount payable from the Harbors and Watercraft Revolving Fund
(Item 3790-001-0516)  . . . -548,000

(j)  Amount payable from the Parkland Fund of 1980 (Item
3790-001-0721)  . . . -2,417,000

(k) Amount payable from the Recreational Trails Fund (Item
3790-001-0858)  . . . -150,000

(l) Amount payable from the Federal Trust Fund (Item 3790-0010890)
. . . -2,745,000

Provisions:

1. Of the funds appropriated by this act from state  general
funds
and   special funds, other than the Off-Highway Vehicle Trust
Fund and bond funds, to the Department of Parks and Recreation for
local assistance grants to local agencies, the department may
allocate
an amount not to exceed 1.5 percent of each project's allocation to
provide for the department's costs to administer these grants.

2. The funds appropriated by this act for the support of the
Department
of Parks and Recreation shall be expended as authorized by this item
and as set forth in the Memorandum of Understanding as adopted by
the Legislature as a part of the annual budget process, and as
reflected
in the Supplemental Report of the 1998 Budget Act.

3. The Department of Parks and Recreation shall provide   to the
Joint Legislative Budget Committee  :

(a) Written notification and copies of any proposed operating plan
and
any proposed amendments, revisions, or additions to an existing
operating plan at least 30 days prior to (1) the department's
approval
of that plan, amendments, revisions, or additions and (2) prior to
the
implementation of the plan, amendments, revisions, or additions.

(b) Notification in writing, of any and all proposed rate increases,
operational policy and guest service changes, and implemenation of
new service charges at least 30 days prior to the department's
approval
of the increases, changes, and new service charges and prior to the
implementation of the increases, changes, and new service charges.

3790-001-0449--For support of Department of Parks and Recreation,
for payment to Item 3790-001-0392, payable from the Winter
Recreation Fund  . . . 175,000

3790-001-0516--For support of Department of Parks and Recreation,
for payment to Item 3790-001-0392, payable from the Harbors and
Watercraft Revolving Fund  . . . 548,000

3790-001-0721--For support of Department of Parks and Recreation,
for payment to Item 3790-001-0392, payable from the Parkland Fund
of 1980  . . . 2,417,000

3790-001-0858--For support of Department of Parks and Recreation,
for payment to Item 3790-001-0392, payable from the Recreational
Trails Fund  . . . 150,000

3790-001-0890--For support of Department of Parks and Recreation,
for payment to Item 3790-001-0392, payable from the Federal Trust
Fund  . . . 2,745,000

3790-011-0062--For support of Department of Parks and Recreation,
for transfer by the State Controller to the State Parks and
Recreation
Fund, as prescribed by subdivision (a) of Section 2107.7 of the
Streets
and Highways Code, for expenditure by the department for
maintenance and repair of highways in units of the state park system,

payable from the Highway Users Tax Account, Transportation Tax
Fund  . . . (3,400,000)

3790-012-0061--For transfer by the State Controller from the Motor
Vehicle Fuel Account, Transportation Tax Fund, to the State Parks and

Recreation Fund  . . . (11,649,000)

Provisions:

1. Notwithstanding any other provision of law, of the amount that
would have transferred to the Harbors and Watercraft Revolving Fund
from the Motor Vehicle Fuel Account, Transportation Tax Fund, the
amount of this item shall be available for transfer from the Motor
Vehicle Fuel Account, Transportation Tax Fund to the State Parks and
Recreation Fund.

3790-101-0001--For local assistance, Department of Parks and
Recreation, to be available for expenditure during the 1998-99,
1999-2000, and 2000-01 fiscal years  . . .  20,000,000

 7,500,000 

Schedule:

(a) 50.20.786-Roberti-Z'berg-Harris Urban Open-Space and
Recreation Program Grants  . . .  20,000,000 
 7,500,000 

3790-101-0262--For local assistance, Department of Parks and
Recreation, payable from the Habitat Conservation Fund, to be
available for expenditure during the 1998-99, 1999-2000 and
2000-2001 fiscal years  . . . 2,000,000

Schedule:

(1) 80.25-Local Grants-Habitat Conservation Fund Program  . . .
2,000,000

Provisions:

1. The funds appropriated by this item shall be available only for
projects submitted to the Department of Parks and Recreation for
consideration during the evaluation process for the Habitat
Conservation Fund Program.

2. The funds appropriated by this item shall be used for purposes
consistent with the requirements of the Habitat Conservation Fund,
and the Unallocated Account, Cigarette and Tobacco Products Surtax
Fund.

3790-101-0263--For grants to cities, counties, or special districts,
as
specified in Division 5 (commencing with Section 5001) of the Public
Resources Code, Department of Parks and Recreation, payable from
the Off-Highway Vehicle Trust Fund, to be available for expenditure
during the 1998-99, 1999-2000 and 2000-2001 fiscal years  . . .
13,118,000

Schedule:

(1) 80.12-Off-Highway Motor Vehicle Recreation Fund-Grants  . . .
13,118,000

3790-101-0858--For local assistance, Department of Parks and
Recreation, payable from the Recreational Trails Fund, to be
available
for expenditure during the 1998-99, 1999-2000 and 2000-2001 fiscal
years  . . . 3,572,000

Schedule:

(1) 80.12-Off-Highway Motor Vehicle Recreation-Grants  . . .
1,072,000

(2) 80.25-Local Grants  . . . 2,500,000

Provisions:

1. The funds appropriated in Schedules (1) and (2) shall be available

for expenditure for local assistance or capital outlay.

3790-101-0890--For local assistance, Department of Parks and
Recreation, payable from the Federal Trust Fund, to be available for
expenditure during the 1998-99, 1999-2000 and 2000-2001 fiscal
years  . . . 2,375,000

Schedule:

(1) 80.25-Local Grants  . . . 2,000,000

(2) 80.30-Historic Preservation Grants  . . . 375,000

 3790-102-0001--For local assistance, Department of Parks and
Recreation, to be available for expenditure during the 1998-99,
1999-2000, and 2000-01 fiscal years  . . . 44,727,000

Schedule:

(a) 80.25-Local Grants  . . . 44,727,000

(2) City of Anaheim: Community Center  . . . (100,000)

(3) City of Anaheim: Support for the Boys and Girls Club  . . .
(45,000)

(4) City of Artesia: Artesia Park Acquisition  . . . (350,000)

(4.1) City of Bakersfield: Police Activities League Youth Center  . .
.
(25,000)

(4.2) Bear Mountain Parks and Recreation District: Repavement of
Basketball Courts  . . . (18,000)

(5) City of Bell Gardens: Bell Gardens Pool  . . . (200,000)

(6) City of Bell Gardens: Ford Park Renovations  . . . (200,000)

(7) City of Bellflower: Bellflower Recreational Park  . . . (100,000)


(8) City of Bellflower: Bellflower Skateboard Park  . . . (250,000)

(8.1) Butte County: Courthouse Remodel  . . . (200,000)

(8.2) City of Calexico: Nosotros Park  . . . (250,000)

(8.3) City of Calabasas: Calabasas-Agoura Hills Community Center
. . . (1,000,000)

(8.4) City of Chino: Youth Museum  . . . (150,000)

(8.5) City of Chino: Cypress Park Picnic Pavilion  . . . (85,000)

(8.6) City of Chino: Cypress Park Playground Equipment  . . .
(63,000)

(8.7) City of Chino: Monte Vista Park Upgrade  . . . (40,000)

(8.8) City of Chino Hills: Western Hills Park Acquisition and
Equipment  . . . (300,000)

(9) City of Chula Vista: 3 Park Projects  . . . (504,000)

(9.1) City of Clearlake: Clearlake Senior Center  . . . (250,000)

(10) City of Cloverdale: Senior Center  . . . (350,000)

(11) City of Coachella: Restroom Facilities for 3 Parks  . . .
(50,000)

(11.1) Coalinga-Huron Parks and Recreation District: New Keck Park
Irrigation System  . . . (9,000)

(11.2) Coalinga-Huron Parks and Recreation District: New Olsen Park
Irrigation System  . . . (11,000)

(11.3) Coalinga-Huron Parks and Recreation District: New Chesnut
Park Irrigation System  . . . (5,000)

(11.4) City of Corcoran: Boswell Community Park Tennis Courts  . .
. (2,000)

(11.5) City of Corcoran: Boswell Community Park: Inline Hockey
Rink construction  . . . (9,000)

(11.6) City of Corcoran: Boswell Park Tennis Court Lighting  . . .
(10,000)

(11.7) City of Corcoran: Community Pool Retrofit  . . . (4,000)

(11.8) City of Corcoran: Marrot Park Swing Installation  . . .
(3,000)

(12) City of Corona: Gymnasium Project Retrofit and ADA Upgrades
. . . (130,000)

(13) City of Cypress: Completion of Roller Hockey Rink and
Skateboard Park  . . . (120,000)

(14) City of Daly City: Thornton Beach Access  . . . (300,000)

(14.1) City of Delano: Cecil Park Playground Equipment  . . .
(25,000)

(14.2) City of Delano: Cecil Park Lighting  . . . (20,000)

(15) City of Desert Hot Springs: Repair Boys and Girls Club
Swimming Pool  . . . (50,000)

(16) East Bay Regional Park District: Arroyo del Valle Outdoor
Education Center  . . . (4,500,000)

(17) City of El Cajon: 5 Park Projects  . . . (278,000)

(18) City of El Monte: El Monte Community Center  . . . (500,000)

(19) City of Exeter: Boys and Girls Club Facility Repairs  . . .
(51,000)

(20) City of Glendale: College View School Park  . . . (250,000)

(21) City of Half Moon Bay: Pilarcitos Creek Bike Trail  . . .
(300,000)

(21.1) City of Hanford: Community Pool  . . . (4,000)

(21.2) City of Hanford: Lacey Park Construction  . . . (20,000)

(22) City of Healdsburg: Carson Warner Memorial Park  . . . (92,000)

(23) City of Hemet: Development of New Youth Baseball Fields  . .
. (55,000)

(23.1) City of Huntington Beach: Lifeguard Tower Repair  . . .
(250,000)

(24) City of King City: Construction of a 10-acre Community Park  .
. . (350,000)

(25) City of King City: Refurbishing 2 Community Tennis Courts  . .
. (50,000)

(27) City of La Mesa: 3 Park Projects  . . . (176,000)

(28) City of Lafayette: Establishment of Community Park  . . .
(25,000)

(28.1) City of Lamont: Lamont Park Concession Stand  . . . (10,000)

(28.2) City of Lancaster: National Soccer Complex Restrooms  . . .
(200,000)

(29) City of Lemon Grove: 3 Park Projects  . . . (136,000)

(30) City of Linden: Swimming Pool  . . . (25,000)

(31) City of Livingston: Livingston Soccer Field  . . . (221,000)

(32) City of Lockeford: Community Park  . . . (100,000)

(33) City of Lompoc: Alan Hancock Bikeway Extension  . . .
(402,000)

(34) City of Los Angeles: Griffith Park Replumbing  . . . (1,500,000)


(34.1) City of Los Angeles: Korean American Museum  . . . (250,000)

(35) County of Mariposa: Bridge Project Phase II  . . . (185,000)

(35.1) City of Mendota: Dump Truck Acquisition  . . . (5,000)

(36) City of Montclair: Sunset Park Amphitheater Project  . . .
(75,000)

(37) City of National City: 2 Park Projects  . . . (275,000)

(37.1) City of Norco: Gymnasium Project  . . . (130,000)

(38) City of Ojai: Parks Improvement  . . . (250,000)

(38.1) City of Ontario: De Anza Park  Restroom and Storage Facilities

. . . (150,000)

(39) City of Ontario: Relighting of Ontario Ballfield  . . . (98,000)


(40) City of Oxnard: Rio de Valle Gymnasium/Community Complex
. . . (100,000)

(41) City of Pacifica: Milagra Creek Erosion Control Project  . . .
(300,000)

(42) City of Palmdale: Maintenance and Repair for McAdam Park
Swimming Pool  . . . (100,000)

(43) City of Rancho Cucamonga: After School Drop-In Program  . . .
(30,000)

(44) City of Rancho Palos Verdes: Development of Hesse Park Site
. . . (150,000)

(45) City of Redondo Beach: Redondo Beach Park  . . . (80,000)

(46) City of Richmond: Richmond Trail  . . . (40,000)

(47) City of Riverside: Cesar Chavez Community Center  . . .
(235,000)

(48) City of Riverside: Villegas Park Swimming Pool Rehabilitation
. . . (157,000)

(50) City of Salinas: Soccer Complex Facilities  . . . (600,000)

(51) City of San Buenaventura: Repairs to the Ventura Pier  . . .
(750,000)

(52) City of San Diego: 7 Park Projects  . . . (499,000)

(53) City of San Diego: Alcott School Tot Lot  . . . (115,000)

(54) City of San Diego: La Jolla Cove Erosion Project  . . .
(540,000)

(54.1) City of San Diego: Coast to Crest Trail  . . . (300,000)

(55) City of San Diego: Lake Murray Community Park Comfort
Station  . . . (115,000)

(56) City of San Diego: Ocean Beach Tot Lot  . . . (80,000)

(57) City of San Diego: Sandburg Park Tot Lot Upgrade  . . .
(135,000)

(58) City of San Diego: Tierrasanta Community Park Tot Lot Upgrade
. . . (80,000)

(59) County of San Diego: New Spring Valley Family Health Center
. . . (51,000)

(60) City of San Fernando: Las Palmas Youth/Senior Activity Center
Demolition Tot Lot  . . . (800,000)

(61) City and County  of San Francisco: Asian Art Museum  . . .
(5,000,000)

(62) City and County of San Francisco: Bayview Playground
Swimming Pool  . . . (500,000)

(63) City and County of San Francisco: Collingwood Park Acquisition
. . . (500,000)

(64) City and County of San Francisco: Conservatory of
Flowers--Plans and working drawings  . . . (2,000,000)

(65) City and County of San Francisco: Glen Canyon Park  . . .
(50,000)

(66) City and County of San Francisco: Golden Gate Park--Lakes
Restoration  . . . (200,000)

(67) City and County of San Francisco: Lake Merced Restoration  . .
. (200,000)

(68) City and County of San Francisco: McClaren Park  . . . (100,000)


(69) City and County of San Francisco: Pine Lake Park  . . .
(200,000)

(70) City of San Jose: Guadalupe River Parkway--South Trail Project
. . . (1,000,000)

(71) City of San Jose: Mexican Cultural Heritage Garden and Plaza
. . . (500,000)

(72) City of San Jose: Vietnamese Cultural Garden  . . . (500,000)

(73) City of Santa Ana: Completion of Concession Stand at Santa Ana
Santiago Little League  . . . (125,000)

(73.1) City of Sanger: Sanger Swimming Pool  . . . (500,000)

(74) City of Santa Ana: Graffiti Removal and Park Maintenance Van
. . . (50,000)

(75) County of Santa Barbara: Bowl Renovation  . . . (3,100,000)

(76) City of Santa Clarita: Auditorium Rehabilitation  . . .
(350,000)

(77) City of South San Francisco: Community Theater Renovation  .
. . (300,000)

(77.1) City of Shafter: Westside Park Irrigation System  . . .
(25,000)

(77.2) City of Shafter: Westside Park Playground Equipment  . . .
(25,000)

(78) City of South San Francisco: Multi-Use Park Planning  . . .
(400,000)

(79) Templeton Community Services District: Gibson Park Youth  .
. . (150,000)

(79.1) City of Taft: A street Park Irrigation and Landscaping  . . .

(20,000)

(80) City of Turlock: Ella Johnson Community Center  . . . (322,000)

(81) City of Walnut Creek: Completion of Phase I of Civic Arts
Education Shadelands Campus Master Plan  . . . (207,000)

(82) City of West Hollywood: West Hollywood Park Pool  . . .
(150,000)

(82.1) City of Wasco: Swimming Pool Repairs  . . . (25,000)

(82.2) City of Wasco: Filbern Avenue Bike Trail Irrigation System  .

. . (25,000)

(82.3) City of Watsonville: Child Care Facility  . . . (400,000)

(83) City of West Hollywood: William S. Hart House Renovation  . .
. (125,000)

(84) Western Center Community Foundation: Western Center for
Archaeology and Paleontology  . . . (5,000,000)

           (85) City of Willits: Willits Soccer Field  . . .
(280,000)

(86) City of Yucaipa: Park Facilities  . . . (1,000,000)

3790-102-0140--For local assistance, Department of Parks and
Recreation, payable from the California Environmental License Plate
Fund, to be available for expenditure during the 1998-99, 1999-2000,
and 2000-01 fiscal years  . . . 1,215,000

Schedule:

(1) 80.25-Local Grants  . . . 1,215,000

(a) City of San Diego: Bayview Terrace Elementary School--Joint Use
Park Facility  . . . (1,165,000)

(b) City of San Francisco: Palace of Fine Arts  . . . (50,000) 

3790-301-0001--For capital outlay, Department of Parks and
Recreation  . . . 7,411,000

Schedule:

(1) 90.CB.600-Morro Bay SP: Campground and Day Use
Rehabilitation--Preliminary plans  . . . 188,000

(1.5) 90.G1.205-Red Rock Canyon SP: Storm damage--Minor projects
. . . 270,000

(2) 90.H6.605-Cuyamaca Rancho SP: Rehabilitation of Paso Picacho
Campground--Preliminary plans and working drawings  . . . 199,000

(3) 90.I6.605-San Elijo SB: Public Use Facilities--Working drawings
and construction  . . . 3,648,000

(4) 90.RS.205-Statewide: State Park System--Minor Projects  . . .
2,779,000

(5) 90.RS.220-Statewide: Disasters Program--Minor Projects  . . .
500,000

(6) 90.RS.810-Capital Outlay Projects  . . . 2,786,000

(7) 90.3F.605-Benbow Lake SRA: Benbow Dam Repair--Preliminary
plans and working drawings  . . . 86,000

(8) 90.8J.600-Columbia SHP: Knapp Block Rehabilitation--Study and
preliminary plans  . . . 180,000

(9) Reimbursements  . . . -3,225,000

Provisions:

1. Notwithstanding any other provision of law, the Department of
Parks and Recreation may borrow funds from the State Parks and
Recreation Fund in order to provide advance cash for fully authorized

reimbursement-funded projects. The loan shall be requested in writing

by the Department of Parks and Recreation to the Controller's office
as needed for cash-flow and will not be subject to any interest.

2. In the event the Department of Parks and Recreation receives
additional unanticipated reimbursements from any agency of any local
government or the federal government for other capital outlay
projects,
expenditure may be authorized in accordance with Section 28.50 of
this act.

3790-301-0262--For capital outlay, Department of Parks and
Recreation, payable from the Habitat Conservation Fund  . . .
2,500,000

Schedule:

(1) 90.RS.406-Habitat Conservation: Proposed Additions--Acquisition
. . . 1,000,000

(2) 90.RS.407-Santa Lucia Mountains: Proposed
Additions--Acquisition  . . . 1,500,000

Provisions:

1. The funds appropriated in Schedule (1) of this item shall be
expended for state park acquisitions located in the Klamath-Siskiyou,

Sierra Foothills and Low Coastal Mountain, Southwest Mountain and
Valley, and Sierra Nevada Landscape Provinces.

2. The funds appropriated in Schedules  1 and 2  
 (1) and
(2)   of this item shall be used for purposes consistent with
the
Unallocated Account, Cigarette and Tobacco Products Surtax Fund
and the Habitat Conservation Fund.

3790-301-0263--For capital outlay, Department of Parks and
Recreation, payable from the Off-Highway Vehicle Trust Fund  . . .
 10,445,000 
 5,345,000 

Schedule:

(1) 90.C7.401-Ocotillo Wells SVRA: Eastern Acquisition--Acquisition
. . . 3,600,000

(2) 90.RS.206-Statewide: OHV Minors--Minor Projects  . . . 650,000

(3) 90.RS.403-Statewide: Opportunity Purchase--Acquisition  . . .
300,000

(4) 90.RS.404-Statewide: Prebudget Appraisal Costs--Planning  . . .
50,000

(5) 90.RS.601-Fresno Area/Southern San Joaquin Valley--OHV Site
 Planning  . . . 195,000

(6) 90.RS.414-Fresno Area/Southern San Joaquin Valley--Acquisition
. . . 3,000,000

 

Planning and Acquisition  . . . 295,000 

(7) 90.RS.605-Statewide: Budget Package/Schematic Planning--
Planning  . . . 50,000 

(8) 90.7C.400-Oceano Dunes SVRA: La Grande Tract--Acquisition
. . . 2,200,000 

(9) 90.7K.601-Carnegie SVRA: Tesla and Alameda--Planning  . . .
400,000

Provisions:

1. Funds appropriated in Schedule (7) shall be used to develop design

information or cost information for new projects for which funds have

not been appropriated previously, but which are anticipated to be
included in the Governor's Budget for the 1999-2000 or 2000-2001
fiscal year.

2. Funds appropriated in Schedule (4) shall be used to develop cost
information for new acquisition projects for which funds have not
been appropriated previously, but which are anticipated to be
included
in the Governor's Budget for the 1999-2000 or 2000-2001 fiscal year.

In addition, these funds also may be used for other
acquisition-related
administrative costs.

3. Funds appropriated in Schedule (3) shall be available for
inholding
acquisitions, parcels adjacent to existing state vehicular recreation

areas or parcels available through tax default that fall within the
department's  five year    five-year   plan
for
program expansion. 

4. Of the funds appropriated in Schedule (5), $100,000 may be used
to purchase an option for property. 

3790-301-0545--For capital outlay, Department of Parks and
Recreation, payable from the River Parkway Subaccount  . . .
1,000,000

Schedule:

(1) 90.RS.811-River Parkway Program--Minor Projects  . . . 1,000,000

3790-301-0786--For capital outlay, Department of Parks and
Recreation, payable from the California Wildlife, Coastal and Park
Land Conservation Fund of 1988  . . . 457,000

Schedule:

(1) 90.RS.260-Statewide: Recreational Trails--Minor Projects  . . .
250,000

(2) 90.RS.230-Statewide: Stewardship Program--Minor Projects  . . .
207,000

Provisions:

1. Funds appropriated in Schedule (2) of this item shall be available

for expenditure until June 30, 2001.

3790-301-0890--For capital outlay, Department of Parks and
Recreation, payable from the Federal Trust  Fund  . . . 600,000

Schedule:

(1) 90.RS.801-Federal Trust Fund: Acquisition and development  . .
. 600,000 

3790-302-0001--For capital outlay, Department of Parks and
Recreation  . . . 5,737,000

Schedule:

(1) 90.B2.205-Auburn State Recreation Area: Quarry Road
Stabilization--Minor Project  . . . 47,000

(2) 90.E4.400-Chino Hills State Park: Coal Canyon Biological
Corridor--Acquisition  . . . 3,000,000

(3) 90.FB.100-Pio Pico State Park: Restoration--Preliminary plans,
working drawings, and construction  . . . 750,000

(4) 90.5N.205-Mount Diablo State Park: Construction of
Observatory--Minor Project  . . . 60,000

(5) 90.5N.400-Mount Diablo State Park: Acquisition of Turtle Rock
Ranch--Acquisition  . . . 200,000

(6) 90.6L.400-Tomales Bay State Park: Scenic Lands, Millerton Point
Acquisition--Acquisition  . . . 1,300,000

(7) 90.6U.205-Annadel State Park: ADA Compliant
Restrooms--Minor Project  . . . 40,000

(8) 90.99.205-San Luis Reservoir State Recreation Area: Los Banos
Creek Bridge--Minor Project  . . . 340,000 

3790-401--For the 1998-99 fiscal year, the balance as of July 1,
1998,
deposits in, and accruals to the Conservation and Enforcement
Services Account in the Off-Highway Vehicle Trust Fund shall be
transferred by the State Controller to the Off-Highway Vehicle Trust
Fund. All funds transferred pursuant to this item shall be available
for
expenditure by the Department of Parks and Recreation for purposes
of conservation and enforcement activities pursuant to Sections 23
and
25 of Chapter 1027, Statutes of 1987 which are authorized for
expenditure within Items 3790-001-0263, 3790-101-0263, and
3790-301-0263. The State Controller shall make the transfers
quarterly
or at such intervals as determined necessary to meet the cash-flow
needs of the Off-Highway Vehicle Trust Fund.

3790-490--Reappropriation, Department of Parks and Recreation. The
balances of the appropriations provided in the following citations
are
reappropriated for the purposes and subject to the limitations,
unless
otherwise specified, provided for in the appropriations:

0001--General Fund

(1) Item 3790-301-0001(1), Budget Act of 1997,
Reimbursements-Transportation Enhancement Activities Program.

(2) Item 3790-301-0001(2), Budget Act of 1997.
Reimbursements-Environmental Enhancement and Mitigation
Demonstration Program.

(3) Item 3790-301-0001(3), Budget Act of 1997, 90.RS.101,
Statewide: California Coastal Trail Improvements-Preliminary plans,
working drawings, and construction.

(4) Item 3790-301-0001(4), Budget Act of 1997, 90.94.101, Stanford
Mansion State Historical Park Preservation-Preliminary plans, working

drawings, and construction.

(5) Item 3790-301-0001(5), Budget Act of 1997, 90.FB.101, Pio
Pico-Preliminary plans, working drawings, and construction.

(6) Item 3790-301-0001(6), Budget Act of 1997, 90.BN.280, Point
Sur Lighthouse Restoration-Minor project.

(7) Item 3790-301-0001(7), Budget Act of 1997, 90.8U.101, Alder
Creek Bike Trail/Bridge-Preliminary plans, working drawings, and
construction.

(8) Item 3790-301-0001(8), Budget Act of 1997, 90.RS.280, Coastal
Bicycle Trail Improvements-Minor project.

(9) Item 3790-301-0001(9), Budget Act of 1997, 90.9B.101, Railtown
SHP: Rehabilitate Railroad Shops-Preliminary plans, working
drawings, and construction.

(10) Item 3790-301-0001(10), Budget Act of 1997, 90.9H.280,
Allensworth SHP: Railroad Station Restoration-Minor project.

(11) Item 3790-301-0001(11), Budget Act of 1997, 90.9M.280,
American River Trail-Minor project.

(12) Item 3790-301-0001(12), Budget Act of 1997, 90.FO.280,
Huntington and Bolsa Chica SB: Rehabilitate Recreational
Facilities-Minor project.

(13) Item 3790-301-0001(13), Budget Act of 1997, 90.C0.280, Henry
W. Coe SP: Entrance Development-Minor project.

(14) Item 3790-301-0001(14), Budget Act of 1997, 90.8P.280,
Emerald Bay SP: Trail Development-Minor project.

(15) Item 3790-301-0001(15), Budget Act of 1997, 90.42.280,
Pudding Creek Trestle and Coastal Dune Restoration-Minor project.

(16) Item 3790-301-0001(16), Budget Act of 1997, 90.FJ.280, Los
Liones Canyon Roadside Restoration and Recreation
Improvements-Minor project.

(18) Item 3790-301-0001(19), Budget Act of 1997, 90.GI.280, Crystal
Cove SP: Improvements-Minor project.

(19) Item 3790-301-0001(20), Budget Act of 1997, 90.9R.280, Fort
Tejon SHP: Grapevine Creek Restoration and Stabilization-Minor
project.

(20) Item 3790-301-0001(21), Budget Act of 1997, 90.8P.281, Eagle
Falls Pedestrian Access Enhancement-Minor project.

(21) Item 3790-301-0001(22), Budget Act of 1997, 90.6U.280,
Annadel SP: Trails Restoration-Minor project.

(22) Item 3790-301-0001(23), Budget Act of 1997, 90.5X.280,
Marconi Conference Center SHP: Improvements-Minor project.

(23) Item 3790-301-0001(24), Budget Act of 1997, 90.3B.280,
Avenue of the Giants Auto Tour Improvements-Minor project.

(24) Item 3790-301-0001(25), Budget Act of 1997, 90.8I.280,
Calaveras Big Trees SP: Entrance Improvements-Minor project.

(25) Item 3790-301-0001(26), Budget Act of 1997, 90.8Q.280,
Brannan Island SRA: Enhance Roadside-Minor project.

0263-Off-Highway Vehicle Trust Fund

(1) Item 3790-301-263(2), Budget Act of 1995, 90.C7.400, Ocotillo
Wells SVRA: Northern Acquisition-Acquisition, with the exception of
a  partial reversion as shown in Item 3790-495-0263(1).

(2) Item 3790-301-263(5), Budget Act of 1995, 90.RS.403, Statewide:
Opportunity Purchases-Acquisition.

(3) Item 3790-301-263(8), Budget Act of 1995, as reappropriated by
Item 3790-490, Budget Acts of 1996 and 1997. 90.RS.606 San Diego,
OHV Area: Site Planning.

0392-State Parks and Recreation Fund

(1) Item 3790-301-392(1), Budget Act of 1995, as reappropriated by
Item 3790-490, Budget Acts of 1996 and 1997. 90.GI.110 Crystal
Cove SP: Historic District Rehabilitation-Study, preliminary plans,
working drawings.

(2) Item 3790-301-392(2), Budget Act of 1995, as reappropriated by
Item 3790-490, Budget Acts of 1996 and 1997. 90.RS.810 Capital
Outlay Projects.

(3) Item 3790-301-392(3), Budget Act of 1995, as reappropriated by
Item 3790-490, Budget Acts of 1996 and 1997.
Reimbursements-Capital Outlay Projects.

0545-River Parkway Subaccount

(1) Item 3790-301-0545(2), Budget Act of 1997, 90.38.290,
Richardson Grove SP: Durphy Creek Fisheries Rehabilitation.

(2) Item 3790-301-0545(3), Budget Act of 1997, 90.2X.290,
Humboldt Lagoons SP: Mcdonald Creek Restoration.

(3) Item 3790-301-0545(4), Budget Act of 1997, 90.3X.290, Russian
Gulch Creek Trail Rehabilitation.

(4) Item 3790-301-0545(5), Budget Act of 1997, 90.3B.290,
Humboldt Redwoods SP: South Fork, Eel River, and Bull Creek
Watershed/Trail Rehabilitation.

0722-Parklands Fund of 1984

(1) Item 3790-301-722(10.1), Budget Act of 1985, as reappropriated
by Item 3790-490, Budget Acts of 1992 and 1995, 90.EA.400.852,
Chino Hills SP: Brea Olinda wilderness acquisition, provided that the

amount of this reappropriation shall not exceed $780,000.

0786-California Wildlife, Coastal, and Park Land Conservation Fund
of 1988

(1) Item 3790-301-786(7), Budget Act of 1994, as reappropriated by
Item 3790-490, Budget Acts of 1995, 1996 and 1997. 90.RS.615
Statewide: CEQA Filing Fees-Planning.

(2) Item 3790-301-786(4), Budget Act of 1995, as reappropriated by
Item 3790-490-786(18), Budget Acts of 1996 and 1997. 90.RS.405
Statewide: Relocation Assistance; provided that funds reappropriated
in this item may be used for relocation assistance, acquisition
costs,
and/or prebudget appraisals costs.

(3) Item 3790-301-0786(2), Budget Act of 1996, as reappropriated by
Item 3790-490, Budget Act of 1997. 90.RS.260 Statewide:
Recreational Trails-Minor Projects.

(4) Item 3790-301-0786(5), Budget Act of 1996, as reappropriated by
Item 3790-490, Budget Act of 1997. 90.RS.608. Statewide: Budget
Packages/Schematic Planning, and Topographic Surveys.

3790-495--Reversion, Department of Parks and Recreation. As of June
30, 1998, the unencumbered balances of the appropriations provided
in the following citations shall revert to the fund balance of the
fund
from which the appropriation was made:

0263-Off-Highway Vehicle Trust Fund

(1) Item 3790-301-263(2), Budget Act of 1995, 90.C7.400, Ocotillo
Wells SVRA: Northern Acquisition-Acquisition--Partial
reversion--except that the amount to be reverted shall be limited to
$500,000.

 0392--State Parks and Recreation Fund

(1) Item 3790-402 of Section 2.00 of Chapter 162 of the Statutes of
1996 as modified by Item 3790-403 of Section 2.00 of Chapter 282 of
the Statutes of 1997. Revert transfer and appropriation authority.
Funds shall revert to the New Governor's Mansion Account within the
Special Deposit Fund.

3810-001-0001--For support of the Santa Monica Mountains
Conservancy, for payment to Item 3810-011-0941  . . . 50,000

Provisions:

1. Funds appropriated by this item are available for reimbursement to

local conservation corps for corps services for the programs
authorized
in Division 23 (commencing with Section 33000) of the Public
Resources Code. 

3810-001-0140--For support of the Santa Monica Mountains
Conservancy, for payment to Item 3810-011-0941, payable from the
California Environmental License Plate Fund  . . . 107,000

3810-011-0941--For support of Santa Monica Mountains
Conservancy, payable from the Santa Monica Mountains Conservancy
Fund  . . . 447,000

Schedule:

(a) 10-Santa Monica Mountains Conservancy  . . .  594,000

 644,000 

(b) Reimbursements  . . . -40,000

 (bx) Amount payable from the General Fund (Item
3810-001-0001)  . . . -50,000 

(d) Amount payable from the California Environmental License Plate
Fund (Item 3810-001-0140)  . . . -107,000

Provisions:

1. Notwithstanding Article 4 (commencing with Section 11040) of
Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code,
the Attorney General shall continue to provide legal services to the
Santa Monica Mountains Conservancy consistent with the manner in
which the Attorney General provides legal services to state agencies
that are funded by appropriations made from the General Fund.

2. (a) The Santa Monica Mountains Conservancy shall not encumber
state appropriated funds for the purchase or acquisition of real
property
directly or through any public agency intermediary, including the
State
Public Works Board, that requires the payment of interest costs, or
late
fees or penalties, unless the  Conservancy   
conservancy
 certifies all of the following: (1) that the purchase is
necessary to
implement an acquisition identified in the high priority category of
the
work program submitted annually to the Legislature pursuant to
Section 33208 of the Public Resources Code, or amendments made
thereto, (2) that the purchase agreement does not involve interest
payments or terms in excess of those that the State Public Works
Board may enter into pursuant to Section 15854.1 of the Government
Code, and (3) that the purchase agreement does not commit the state
to future appropriations.

(b) The Santa Monica Mountains Conservancy shall report periodically
to the Legislature, but no less frequently than twice yearly,
concerning
the status of any purchases certified as required in (a) and the
amount
of state funds thus far encumbered for interest, penalties, or other
principal surcharges.

3810-301-0001--For capital outlay, Santa Monica Mountains
Conservancy  . . .  15,000,000 
 10,000,000 

Schedule:

(1) 50.20.001-Acquisition, restoration and improvements for the Los
Angeles and San Gabriel Rivers and tributaries   . . . 
15,000,000

10,000,000 

Provisions:

1. Funds appropriated  pursuant to    in 
this item
shall be used for the purposes of restoring or improving the Los
Angeles River and San Gabriel River. These funds may be expended
for planning, including river restoration planning, acquisition in
watersheds, restoration projects, and water quality and storm water
improvement efforts. Priority shall be given to projects with
multiple
beneficial effects; plans or programs which restore natural ecology,
conserve water, reduce storm water runoff, provide recreation and
community development opportunities and contribute to
environmentally sound flood control.

2. The amount appropriated in this item is available for encumbrance
for either capital outlay or local assistance through fiscal year
2000-01.

3820-001-0001--For support of San Francisco Bay Conservation and
Development Commission  . . . 1,972,000

Schedule:

(a) 10-Bay Conservation and Development  . . . 2,750,000

(b) Reimbursements  . . . -574,000

(c) Amount payable from the Federal Trust Fund (Item
3820-001-0890)  . . . -106,000

(d) Amount payable from the Bay Fill Clean-up and Abatement Fund
(Item 3820-001-0914)  . . . -98,000

Provisions:

1. Of the funds appropriated in this item, $73,000 shall be for the
purpose of updating the wetland protection, marshes, and mudflats
policies of the San Francisco Bay Plan, which shall include public
outreach and public participation in the formulation and
implementation of the policies.

2. None of the funds appropriated in this item shall be used to
establish or operate a mitigation bank.

3820-001-0890--For support of San Francisco Bay Conservation and
Development Commission, for payment to Item 3820-001-0001,
payable from the Federal Trust Fund  . . . 106,000

3820-001-0914--For support of San Francisco Bay Conservation and
Development Commission, for payment to Item 3820-001-0001,
payable from the Bay Fill Clean-up and Abatement Fund  . . . 98,000

 3830-001-0001--For support of the San Joaquin River
Conservancy, for payment to Item 3830-001-0140  . . . 50,000

Provisions:

1. Funds appropriated in this item shall be made available for
reimbursement to the local conservation corps for corps services for
the programs authorized in Division 22.5 (commencing with Section
32500) of the Public Resources Code. 

3830-001-0140--For support of the San Joaquin River Conservancy,
payable from the California Environmental License Plate Fund  . . .
185,000

Schedule:

(a) 10-San Joaquin River Conservancy  . . .  195,000

 245,000 

(b) Reimbursements  . . . -10,000

 (c) Amount payable from the General Fund (Item
3830-001-0001)  . . . -50,000 

Provisions:

1. Acquisitions and enhancements administered pursuant to this item
shall not be undertaken if they would require increased state funds
for
management purposes.

3830-301-0104--For capital outlay, San Joaquin River Conservancy,
payable from the San Joaquin River Conservancy Fund  . . . 0

Schedule:

(1) 20--Capital Outlay Acquisition and Enhancement Projects  . . .
5,000,000

(2) Reimbursements  . . . -5,000,000

Provisions:

1. Acquisitions and enhancements pursuant to this item shall not be
undertaken if they would require increased state funds for management

purposes.

2. Notwithstanding any other provision of law, the funds appropriated

by this item are available for encumbrance for either capital outlay
or
local assistance through the 2000-01 fiscal year.

3. Notwithstanding any other provision of law, upon approval and
order of the Director of Finance, loans may be made to the San
Joaquin River Conservancy Fund from the California Environmental
License Plate Fund to meet cash-flow needs due to delays in
collecting
reimbursements. Any loan authorized by the Department of Finance
pursuant to this provision shall only be made if the Conservancy has
a valid contract or certification which demonstrates that sufficient
funds will be available to repay the loan. All money so transferred
shall
be repaid to the special fund as soon as possible, but not later than
the
end of the fiscal year.

3840-001-0140--For support of the Delta Protection Commission,
payable from the California Environmental License Plate Fund  . . .
39,000

3840-001-0176--For support of the Delta Protection Commission,
payable from the Delta Flood Protection Fund  . . . 67,000

3840-001-0516--For support of the Delta Protection Commission,
payable from the Harbors and Watercraft Revolving Fund  . . . 66,000

3850-001-0140--For support of the Coachella Valley Mountains
Conservancy, payable from the California Environmental License Plate
Fund  . . . 133,000

Schedule:

(a) 10-Coachella Valley Mountains Conservancy  . . . 263,000

(b) Reimbursements  . . . -100,000

(c) Amount payable from the Coachella Valley Mountains
Conservancy Fund (Item 3850-001-0296)  . . . -30,000

Provisions:

1. Acquisitions and enhancements administered pursuant to this item
shall not be undertaken if they would require increased state funds
for
management purposes.

3850-001-0296--For support of the Coachella Valley Mountains
Conservancy, for payment to Item 3850-001-0140, payable from the
Coachella Valley Mountains Conservancy Fund  . . . 30,000

3850-301-0296--For capital outlay, Coachella Valley Mountains
Conservancy, payable from the Coachella Valley Mountains
Conservancy Fund  . . . 40,000

Schedule:

(a) 20-Coachella Valley Mountains, Acquisition and Enhancement
Projects and Costs  . . . 540,000

(b) Reimbursements  . . . -500,000

Provisions:

1. Acquisitions and enhancements pursuant to this item shall not be
undertaken if they would require increased state funds for management

purposes.

2. Notwithstanding any other provision of law, the funds appropriated

by this item are available for encumbrance for either capital outlay
or
local assistance through the 2000-01 fiscal year.

3. Notwithstanding any other provision of law, upon approval and
order of the Director of Finance, loans may be made to the Coachella
Valley Mountains Conservancy Fund from the California
Environmental License Plate Fund to meet cash-flow needs due to
delays in collecting reimbursements. Any loan authorized by the
Department of Finance pursuant to this provision shall only be made
if the Conservancy has a valid contract or certification which
demonstrates that sufficient funds will be available to repay the
loan.
All money so transferred shall be repaid to the special fund as soon
as
possible, but not later than the end of the fiscal year.

3860-001-0001--For support of Department of Water Resources  . . .
 40,970,000 
 56,460,000 

Schedule:

(a) 10-Continuing Formulation of the California Water Plan  . . .

39,700,000 
 53,700,000 

(b) 20-Implementation of the State Water Resources Development
System  . . . 2,050,000

(c) 30-Public Safety and Prevention of Damage  . . . 
32,896,000

 34,886,000 

(d) 40-Services  . . . 4,861,000

(e) 50.01-Management and Administration  . . . 48,620,000

(f) 50.02-Distributed Management and Administration  . . .
-48,620,000

(g) Reimbursements  . . . -9,741,000

 (gx) Less funding provided by capital outlay (Item
3860-301-0001)  . . . -500,000 

(h) Amount payable from the California Environmental License Plate
Fund (Item 3860-001-0140)  . . . -751,000

(i) Amount payable from the Central Valley Project Improvement
Subaccount (Item 3860-001-0404)  . . . -15,000,000

(j) Amount payable from the Delta Levee Rehabilitation Subaccount
(Item 3860-001-0409)  . . . -1,714,000

(k) Amount payable from the Feasibility Projects Subaccount (Item
3860-001-0445)  . . . -2,008,000

(l) Amount payable from the Water Conservation and Groundwater
Recharge Subaccount (Item 3860-001-0446)  . . . -362,000

(m) Amount payable from the Energy Resources Programs Account
(Item 3860-001-0465)  . . . -1,659,000

(n) Amount payable from the Local Projects Subaccount (Item
3860-001-0543)  . . . -381,000

(o) Amount payable from the Sacramento Valley Water Management
and Habitat Protection Subaccount (Item 3860-001-0544)  . . .
-353,000

(p) Amount payable from the 1984 State Clean Water Bond Fund
(Item 3860-001-0740)  . . . -10,000

(q) Amount payable from the 1986 Water Conservation and Water
                                                    Quality Bond Fund
(Item 3860-001-0744)  . . . -343,000

(r) Amount payable from the 1988 Water Conservation Fund (Item
3860-001-0790)  . . . -343,000

(s) Amount payable from the Federal Trust Fund (Item
3860-001-0890)  . . . -5,222,000

(t) Amount payable from the Renewable Resources Investment Fund
(Item 3860-001-0940)  . . . -650,000

Provisions:

1. The amounts appropriated in Items 3860-001-0001 to
3860-001-0940, inclusive, shall be transferred to the Water Resources

Revolving Fund (0691) for direct expenditure in such amounts as the
Department of Finance may authorize, including cooperative work
with other agencies.

 2. Of the amount appropriated by this item, $6,000,000 shall be

available for support of the CALFED process. However, no public
agency, including a state or local agency, may expend any money for
the development and implementation of an isolated transmission
facility that is recommended by the CALFED Bay-Delta program,
until the Legislature specifically approves such a facility.

3. Of the amount appropriated by this item, $1,490,000 shall be
available to pay settlement agreements from litigation on the
overpayment of interest on loans from the 1976 water bond. Of this
amount, $90,000 shall be used to pay the settlement of Paradise
Irrigation District v. Department of Water Resources, Sacramento
Superior Court Case No. 97AS03923, and $1,400,000 shall be used to
pay the settlement of Bolinas Public Utilities District, et al. v.
Department of Water Resources, Los Angeles County Superior Court
Case No. BC 173016.

4. Of the amount appropriated by this item, $10,000,000 may be
expended for feasibility and environmental studies pertaining to the
Sites Reservoir site. 

3860-001-0140--For support of Department of Water Resources, for
payment to Item 3860-001-0001, payable from the California
Environmental License Plate Fund  . . . 751,000

3860-001-0404--For support of Department of Water Resources, for
payment to Item 3860-001-0001, payable from the Central Valley
Project Improvement Subaccount  . . . 15,000,000

3860-001-0409--For support of Department of Water Resources, for
payment to Item 3860-001-0001, payable from the Delta Levee
Rehabilitation Subaccount   . . . 1,714,000

3860-001-0445--For support of Department of Water Resources, for
payment to Item 3860-001-0001, payable from the Feasibility Projects
Subaccount  . . . 2,008,000

3860-001-0446--For support of Department of Water Resources, for
payment to Item 3860-001-0001, payable from the Water Conservation
and Groundwater Recharge Subaccount  . . . 362,000

3860-001-0465--For support of Department of Water Resources, for
payment to Item 3860-001-0001, payable from the Energy Resources
Programs Account   . . . 1,659,000

3860-001-0543--For support of Department of Water Resources, for
payment to Item 3860-001-0001, payable from the Local Projects
Subaccount  . . . 381,000

3860-001-0544--For support of Department of Water Resources, for
payment to Item 3860-001-0001, payable from the Sacramento Valley
Water Management and Habitat Protection Subaccount  . . . 353,000

3860-001-0740--For support of Department of Water Resources, for
payment to Item 3860-001-0001, payable from the 1984 State Clean
Water Bond Fund  . . . 10,000

3860-001-0744--For support of the Department of Water Resources,
for payment to Item 3860-001-0001, payable from the 1986 Water
Conservation and Water Quality Bond Fund  . . . 343,000

3860-001-0790--For support of the Department of Water Resources,
for payment to Item 3860-001-0001, payable from the 1988 Water
Conservation Fund  . . . 343,000

3860-001-0890--For support of Department of Water Resources, for
payment to Item 3860-001-0001, payable from the Federal Trust Fund
. . . 5,222,000

3860-001-0940--For support of Department of Water Resources, for
payment to Item 3860-001-0001, payable from the Renewable
Resources Investment Fund  . . . 650,000

3860-101-0001--For local assistance, Department of Water Resources
. . .  10,000,000 
 40,000,000  

Schedule:

(a) 30.20-Flood Control Subventions  . . . 10,000,000

Provisions:

1. The amount appropriated by this item for flood control subventions

shall be repaid to the General Fund if the Safe Drinking Water, Clean

Water, and Flood Protection Act (Div. 26 (commencing with Sec.
79000) Wat. C.) is approved by the voters at the November 3, 1998,
statewide general election. The amount of repayment shall be equal to

the amount appropriated by this item or the amount contained in the
Flood Control Subventions Account, of the Safe Drinking Water,
Clean Water, and Flood Prevention Act, whichever amount is less.
 

Provisions:

1. The Department of Water Resources shall allocate funds on a pro
rata basis to pay for the state's share of the nonfederal costs of
flood
control projects, which have been adopted and authorized in
accordance with one or more of the following provisions of law:

(a) State Water Resources Law of 1945 (Ch. 1 (commencing with Sec.
12570) and Ch. 2 (commencing with Sec. 12639), Pt. 6, Div. 6, Wat.
C.).

(b) Flood Control Law of 1946 (Ch. 3 (commencing with Sec. 12800),
Pt. 6, Div. 6, Wat. C.).

(c) California Watershed Protection and Flood Prevention Law (Ch. 4
(commencing with Sec. 12850), Pt. 6, Div. 6, Wat. C.).

2. The funds shall be used to pay for costs for which valid written
claims that have been submitted to the department as of June 17,
1998,
and for estimated claims in fiscal year 1998-99, as determined by the

department as of June 17, 1998. Funds, which are made available in
this act, shall be allocated on a pro rata basis to projects in the
counties
of: Contra Costa, Fresno, Kern, Los Angeles, Marin, Napa, Orange,
Riverside, San Bernardino, San Diego, Santa Clara, Sonoma, and
Ventura. 

3860-101-0176--For local assistance, Department of Water Resources,
payable from the Delta Flood Protection Fund  . . . 5,040,000

Schedule:

(a) 30.20-Flood Control Subventions  . . . 5,040,000

3860-101-0409--For local assistance, Department of Water Resources,
payable from the Delta Levee Rehabilitation Subaccount  . . .
4,086,000

3860-101-0446--For local assistance, Department of Water Resources,
payable from the Water Conservation and Groundwater Recharge
Subaccount  . . . 7,250,000

3860-101-0543--For local assistance, Department of Water Resources,
payable from the Local Projects Subaccount  . . . 10,000,000

3860-101-0544--For local assistance, Department of Water Resources,
payable from the Sacramento Valley Water Management and Habitat
Protection Subaccount  . . . 2,845,000

3860-101-0740--For local assistance, Department of Water Resources,
Program 10.29--Conservation Loans, payable from the 1984 State
Clean Water Bond Fund  . . . 20,000

3860-101-0744--For local assistance, Department of Water Resources,
Program 10.29--Conservation Loans, payable from the 1986 Water
Conservation and Water Quality Bond Fund  . . . 10,000,000

3860-101-0790--For local assistance, Department of Water Resources,
Program 10.29--Conservation Loans, payable from the Water
Conservation Bond Fund of 1988  . . . 5,000,000

3860-102-0001--For local assistance, Department of Water Resources
. . . 17,786,000

Schedule:

(a) Delano-Earlimart Irrigation District Gauging Station  . . .
15,000

(b) Dredging Projects  . . . 15,700,000

(c) Middle Creek Marsh Restoration Project Feasibility Study  . . .
371,000

(d) Salton Sea  . . . 1,500,000

(e) Caliente Creek Warning System  . . . 170,000

(f) Mendota Drinking Water Wells  . . . 30,000

Provisions:

1. Funds appropriated in Schedule (b) are available on a one-time
basis
for the following projects: Crescent City Harbor, $135,000; Humboldt
Harbor and Bay, $1,612,000; Los Angeles Harbor, $7,016,000;
Oakland Harbor, $2,401,000; Port of Long Beach, $1,612,000;
Richmond Harbor, $2,318,000; San Francisco Bay to Stockton,
$67,000; Santa Monica Breakwater, $404,000; and Silver Strand
Shoreline/Imperial Beach, $135,000.

2. Funds appropriated in Schedule (e) are for a local assistance
grant
to the City of Lemont for the Caliente Creek Warning System.

3. Funds appropriated in Schedule (f) are for a local assistance
grant
to the City of Mendota for the drilling of test wells related to the
preparation of an environmental impact report. 

3860-301-0001--For capital outlay, Department of Water Resources
. . .  24,710,000 
 27,460,000 

Schedule:

(1) 30.95.010-Sacramento Riverbank Protection Project  . . .
2,500,000

(1.1) 30.95.111-1997 Flood Damage Repair Projects  . . . 7,100,000

(2) 30.95.115-American River Flood Control Project Phase 1:
Common Elements  . . . 10,900,000

(2.1) 30.95.150-West Sacramento Levee Reconstruction Project  . . .
2,400,000

(3) 30.95.205-Sutter County Bridge Replacement  . . . 370,000

(4) 30.95.210-Tisdale Bridge Replacement  . . . 1,800,000

(6) 30.95.230-San Joaquin River Watershed Management Study  . . .
1,500,000

(7) 30.95.235-Sacramento River Watershed Management Study  . . .
1,400,000

(8) 30.95.250-Yuba River-Preconstruction Engineering and Design
Work  . . . 300,000

(9) 30.95.255-Eastside Bypass, Lower San Joaquin River  . . .
2,000,000 

(9.1) 30.95.280-Terminus Dam, Lake Kaweah Project  . . . 2,500,000

(9.3) 30.95.285-Colusa Basin Drainage District, Flood Control Project

. . . 1,000,000 

(9.9) Reimbursements  . . .  -2,200,000 
 -2,950,000 

(10) Reimbursements-American River Flood Control Project Phase 1:
Common Elements  . . . -3,270,000

(12) Reimbursements-Yuba River-Preconstruction Engineering and
Design Work  . . . -90,000

Provisions:

1. The funds appropriated by this item may be expended for the
acquisition of land, easements, and rights-of-way, including, but not

limited to, borrow pits, spoil areas, and easements for levees,
clearing,
flood control works, and flowage, and for appraisals, surveys, and
engineering studies necessary for the completion or operation of the
projects in the Sacramento and San Joaquin watersheds as authorized
by Section 8617.1 and Chapters 1 (commencing with Section 12570),
2 (commencing with Section 12639), 3 (commencing with Section
12800), 3.5 (commencing with Section 12840), and 4 (commencing
with Section 12850) of Part 6 of Division 6 of the Water Code.

2. The amounts appropriated in this item are also for advances to the

federal government or payments to the federal government or others
for incidental construction or reconstruction items that are an
obligation of the state in connection with the completion or
operation
of the projects and for materials and necessary construction,
reconstruction, relocation, or alterations to highways, railroads,
bridges, powerlines, communication lines, pipelines, irrigation
works,
and other structures and facilities and for appraisals, surveys, and
engineering studies incidental thereto.

3. The funds appropriated in this item include funding for
preliminary
plans, working drawings, construction supervision, contract
administration, and other work activities to be performed by
Department of Water Resources personnel in completion of the
projects.

4. Notwithstanding Section 26.00 of this act, funds may be
transferred,
with the approval of the Department of Finance, between projects
specified in this item and other Department of Water Resources major
capital outlay projects with an active appropriation. The Director of

Finance shall notify, in writing, the chairperson of the committee in

each house that considers appropriations and the Chairperson of the
Joint Legislative Budget Committee, within 30 days, or such lesser
time as the Chairperson of the Joint Legislative Budget Committee, or

his or her designee, may determine, prior to any transfer.

3860-301-0413--For capital outlay, Department of Water Resources,
payable from the South Delta Barriers Subaccount  . . . 1,650,000

Schedule:

(1) 10.95.015 South Delta Barriers Program  . . . 1,650,000

                              CALIFORNIA ENVIRONMENTAL
PROTECTION AGENCY

3900-001-0001--For support of State Air Resources Board, for
payment to Item 3900-001-0044  . . .  23,137,000 
 48,137,000

Provisions:

1. Of the funds appropriated by this item, the amount of $25,000,000
shall be available for expenditure for the purposes specified in
Assembly Bill 1368 and Senate Bill 1857, of the 1997-98 Regular
Session. 

3900-001-0044--For support of State Air Resources Board, payable
from the Motor Vehicle Account, State Transportation Fund  . . .
50,934,000

Schedule:

(a) 15-Mobile Source  . . .  69,626,000 
 95,126,000 

(b) 25-Stationary Source  . . . 43,494,000

(c) 30.01-Program Direction and Support  . . . 9,503,000

(d) 30.02-Distributed Program Direction and Support  . . . -9,503,000


(e) Reimbursements  . . . -4,920,000

(f) Amount payable from the General Fund (Item 3900-001-0001)  .
. .  -23,137,000 
 -48,137,000 

(g) Amount payable from the Air Pollution Control Fund (Item
3900-001-0115)  . . . -9,474,000

(h) Amount payable from the Vehicle Inspection and Repair Fund
(Item 3900-001-0421)  . . .  -9,020,000 
 -9,520,000 

(i) Amount payable from the Air Toxics Inventory and Assessment
Account, General Fund (Item 3900-001-0434)  . . . -1,478,000

(j) Amount payable from the Rice Straw Demonstration Project Fund
(Item 3900-001-0489)  . . . -2,500,000

(k) Amount payable from the High Polluter Repair or Removal
Account (Item 3900-001-0582)  . . . -780,000

(l) Amount payable from the Federal Trust Fund (Item
3900-001-0890)  . . . -10,877,000

Provisions:

1. Of the amount appropriated in this item, $1,000,000 shall be used
to contract with, and may be advanced to, the San Joaquin Valleywide
Air Pollution Study Agency for the California Regional Particulate
Matter Air Quality Study.

3900-001-0115--For support of State Air Resources Board, for
payment to Item 3900-001-0044, payable from the Air Pollution
Control Fund  . . . 9,474,000

3900-001-0421--For support of State Air Resources Board, for
payment to Item 3900-001-0044, payable from the Vehicle Inspection
and Repair Fund  . . .  9,020,000 
 9,520,000 

3900-001-0434--For support of State Air Resources Board, for
payment to Item 3900-001-0044, payable from the Air Toxics
Inventory and Assessment Account, General Fund  . . . 1,478,000

3900-001-0489--For support of State Air Resources Board, for
payment to Item 3900-001-0044, payable from the Rice Straw
Demonstration Project Fund  . . . 2,500,000

3900-001-0582--For support of State Air Resources Board, for
payment to Item 3900-001-0044, payable from the High Polluter
Repair or Removal Account  . . . 780,000

3900-001-0890--For support of State Air Resources Board, for
payment to Item 3900-001-0044, payable from the Federal Trust Fund
. . . 10,877,000

3900-011-0001--For transfer by the State Controller to the Rice Straw

Demonstration Project Fund  . . . 2,300,000 

3900-101-0001--For local assistance, State Air Resources Board, for
assistance to counties in the operation of local air pollution
control
districts  . . . 8,011,000

Schedule:

(a) 35-Subvention  . . . 8,011,000  

3900-101-0044--For local assistance, State Air Resources Board, for
assistance to counties in the operation of local air pollution
control
districts, payable from the Motor Vehicle Account, State
Transportation Fund  . . . 7,511,000

Schedule:

(a) 35-Subvention  . . . 7,511,000 

3910-001-0100--For support of California Integrated Waste
Management Board, for payment to Item 3910-001-0387, payable
from the California Used Oil Recycling Fund  . . . 3,853,000

Provisions:

1. Notwithstanding subdivision (c) of Section 48653 of the Public
Resources Code, the aggregate of appropriations from the California
Used Oil Recycling Fund may exceed $3,000,000 during the 1998-99
fiscal year.

3910-001-0226--For support of California Integrated Waste
Management Board, for payment to Item 3910-001-0387, payable
from the California Tire Recycling Management Fund  . . . 4,372,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

2. Notwithstanding Section 42889 of the Public Resources Code,
expenditures for administration of the Tire Recycling Program may
exceed the limits set forth in subdivisions (a) and (b) of Section
42889
of the Public Resources Code.

3910-001-0281--For support of California Integrated Waste
Management Board, for payment to Item 3910-001-0387, payable
from the Recycling Market Development Revolving Loan Account  .
. . 4,936,000

Provisions:

1. Notwithstanding Section 42010 of the Public Resources Code,
$4,000,000 of the funds appropriated in this item shall be available
for
expenditure, until June 30, 2001, for market development activities
undertaken pursuant to Chapter 672 of the Statutes of 1997, including

the development of recycled content product specifications, the
promotion of procurement of recycled content products, the creation
of regional cooperative efforts for market development, and the
enhancement of recycled market development zone administration.

3910-001-0386--For support of California Integrated Waste
Management Board, for payment to Item 3910-001-0387, payable
from the Solid Waste Disposal Site Cleanup Trust Fund  . . . 411,000

Provisions:

1. Notwithstanding Section 48020 of the Public Resources Code,
expenditures for administration of the Solid Waste Cleanup Trust
Fund Program may  exceed the limits set forth in paragraph (2) of
subdivision (c) of Section 48020 of the Public Resources Code.

3910-001-0387--For support of California Integrated Waste
Management Board, payable from the Integrated Waste Management
Account, Integrated Waste Management Fund  . . . 28,342,000

Schedule:

(a) 10-Planning and Enforcement  . . . 18,523,000

(b) 15-Disposal Site Cleanup and Maintenance  . . . 411,000

(c) 20-Waste Reduction and Resource Recovery  . . . 34,270,000

(d) 25-Tire Recycling  . . . 4,372,000

(e) 30.01-Administration  . . . 8,124,000

(f) 30.02-Distributed Administration  . . . -8,124,000

(g) Reimbursements  . . . -480,000

(h) Amount payable from California Used Oil Recycling Fund (Item
3910-001-0100)  . . . -3,853,000

(i) Amount payable from California Used Oil Recycling Fund
(paragraph (4) of subdivision (a) of Section 48653 of the Public
Resources Code)  . . . -3,000,000

(j) Amount payable from California Used Oil Recycling Fund
(paragraph (1) of subdivision (a) of Section 48653 of the Public
Resources Code)  . . . -2,500,000

(k) Amount payable from California Tire Recycling Management Fund
(Item 3910-001-0226)  . . . -4,372,000

(l) Amount payable from Recycling Market Development Revolving
Loan Account (Item 3910-001-0281)  . . . -4,936,000

(m) Amount payable from Recycling Market Development Revolving
Loan Account (Section 42010 of the Public Resources Code)  . . .
-8,574,000

(n) Amount payable from Solid Waste Disposal Site Cleanup Trust
Fund (Item 3910-001-0386)  . . . -411,000

(o) Amount payable from the Farm and Ranch Solid Waste Cleanup
and Abatement Account (Item 3910-001-0558)  . . . -555,000

(p) Amount payable from Federal Trust Fund (Item 3910-001-0890)
. . . -553,000

Provisions:

1. Notwithstanding Section 42010 of the Public Resources Code, the
California Integrated Waste Management Board may offset the costs
of administering the revolving loan program for Recycling Market
Development Zones with funds appropriated by this item.

2. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

3910-001-0558--For support of California Integrated Waste
Management Board, for payment to Item 3910-001-0387, payable
from the Farm and Ranch Solid Waste Cleanup and Abatement
Account   . . . 555,000

Provisions:

1. Notwithstanding Section 48100 of the Public Resources Code,
expenditures for administration of the Farm and Ranch Solid Waste
Cleanup and Abatement Grant Program may exceed the limits set forth
in paragraph (3)(A) of subdivision (c) of Section 48100 of the Public

Resources Code.

3910-001-0890--For support of California Integrated Waste
Management Board, for payment to Item 3910-001-0387, payable
from the Federal Trust Fund  . . . 553,000

3910-003-0100--For transfer by the State Controller to the Farm and
Ranch Solid Waste Cleanup and Abatement Account pursuant to
paragraph (2)(A) of subdivision (c) of Section 48100 of the Public
Resources Code, payable from the California Used Oil Recycling Fund
. . . (250,000)

3910-003-0226--For transfer by the State Controller to the Farm and
Ranch Solid Waste Cleanup and Abatement Account pursuant to
paragraph (2)(A) of subdivision (c) of Section 48100 of the Public
Resources Code, payable from the California Tire Recycling
Management Fund   . . . (250,000)

3910-003-0387--For transfer by the State Controller to the Recycling
Market Development Revolving Loan Account as a loan pursuant to
subdivision (e) of Section 42010 of the Public Resources Code,
payable from the Integrated Waste Management Account  . . .
(5,000,000)

3910-004-0387--For transfer by the State Controller to the Solid
Waste
Disposal Site Cleanup Trust Fund pursuant to paragraph (1) of
subdivision (b) of Section 48027 of the Public Resources Code,
payable from the Integrated Waste Management Account  . . .
(5,000,000)

3910-005-0387--For transfer by the State Controller to the Farm and
Ranch Solid Waste Cleanup and Abatement Account pursuant to
paragraph (2)(A) of subdivision (c) of Section 48100 of the Public
Resources Code, payable from the Integrated Waste Management
Account  . . . (55,000)

3910-101-0226--For local assistance, California Integrated Waste
Management Board, payable from the California Tire Recycling
Management Fund  . . . 500,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

3910-101-0387--For local assistance, California Integrated Waste
Management Board, payable from the Integrated Waste Management
Account, Integrated Waste Management Fund  . . . 4,500,000

3910-101-0890--For local assistance, California Integrated Waste
Management Board, payable from the Federal Trust Fund  . . .
1,500,000

3930-001-0001--For support of Department of Pesticide Regulation
. . .  10,931,000 
 12,449,000 

Schedule:

(a) 12-Registration and Health Evaluation  . . .  12,218,000

 12,987,000 

(b) 17-Enforcement, Environmental Monitoring and Data Management
. . .  25,649,000 
 26,398,000 

(c) 20.10-Executive and Administrative Services  . . . 
4,685,000

 4,980,000 

(d) 20.20-Distributed Executive and Administrative Services  . . .

-4,685,000 
 -4,980,000 

(e) Reimbursements  . . . -564,000

(f) Amount payable from the Department of Pesticide Regulation Fund
(Item 3930-001-0106)  . . . -21,636,000

(g) Amount payable from the California Environmental License Plate
Fund (Item 3930-001-0140)  . . . -487,000

(h) Amount payable from the Food Safety Account (Item
3930-001-0224)  . . . -1,996,000

(i) Amount payable from the Federal Trust Fund (Item 3930-0010890)
. . . -2,253,000 

Provisions:

1. Of the amount appropriated in this item, $2,000,000 shall be used
to contract with the University of California to establish pilot
demonstration projects to provide extension service, training, and
financial incentives to participating farmers who desire to reduce
their
use of chemical fertilizers and/or pesticides. The Department of
Pesticide Regulation's costs of administering the contract(s) shall
not
exceed $40,000.  

1. Of the amount appropriated by this item, $1,000,000 shall be
allocated by the Department of Pesticide Regulation to the University

of California, Sustainable Agriculture Research and Education
Program for Biologically Integrated Farming Systems demonstration
projects.

2. Of the amount appropriated by this item, $1,000,000 shall be
allocated by the Department of Pesticide Regulation to the University

of California, Sustainable Agriculture Research and Education
Program for research, outreach, and demonstration projects related to

alternatives to methyl bromide. 

3930-001-0106--For support of Department of Pesticide Regulation,
for payment to Item 3930-001-0001, payable from the Department of
Pesticide Regulation Fund  . . . 21,636,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the assessment of fines and  penalties imposed as specified in
Section 13332.18 of the Government Code.

3930-001-0140--For support of Department of Pesticide Regulation,
for payment to Item 3930-001-0001, payable from the California
Environmental License Plate Fund  . . . 487,000

3930-001-0224--For support of Department of Pesticide Regulation,
for payment to Item 3930-001-0001, payable from the Food Safety
Account  . . . 1,996,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

3930-001-0890--For support of Department of Pesticide Regulation,
                                                         for payment
to Item 3930-001-0001, payable from the Federal Trust
Fund  . . . 2,253,000

3930-003-0106--For transfer by the State Controller to the Food
Safety
Account pursuant to Section 12846.5 of the Food and Agricultural
Code, payable from the Department of Pesticide Regulation Fund.  .
. . (1,623,000)

3930-101-0001--For local assistance, Department of Pesticide
Regulation  . . . 2,449,000

Schedule:

(a) 17-Enforcement, Environmental Monitoring and Data Management
. . . 12,185,000

(b) Amount payable from the Department of Pesticide Regulation
Fund (Item 3930-101-0106)  . . . -466,000

(c) Amount payable from the Department of Pesticide Regulation
Fund (Section 12844 of the Food and Agricultural Code)  . . .
-9,270,000

3930-101-0106--For local assistance, Department of Pesticide
Regulation, for payment to Item 3930-101-0001, payable from the
Department of Pesticide Regulation Fund  . . . 466,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

3930-490--Reappropriation, Department of Pesticide Regulation.
Notwithstanding any other provision of law, $430,000 of the
unencumbered balance of the funds appropriated by Item
3930-001-0001 of the Budget Act of 1997 is hereby appropriated for
the purposes set forth in Provision 1 of that item, and shall be
available
for expenditure until June 30, 1999.

3940-001-0001--For support of State Water Resources Control Board
. . .  49,842,000 
 46,014,000 

Schedule:

(a) 10-Water Quality  . . .  291,521,000 
 287,421,000 

(b) 20-Water Rights  . . . 9,639,000

(c) 30.01-Administration  . . . 13,443,000

(d) 30.02-Distributed Administration  . . . -13,443,000

(e) Reimbursements  . . .  -8,080,000 
 -7,808,000 

(f) Amount payable from the Leaking Underground Storage Tank Cost
Recovery Fund (Item 3940-001-0025)  . . . -5,530,000

(g) Amount payable from the Unified Program Account (Item
3940-001-0028)  . . . -599,000

(h) Amount payable from the Waste Discharge Permit Fund (Item
3940-001-0193)  . . . -15,659,000

(i) Amount payable from the Environmental Protection Trust Fund
(Item 3940-001-0225)  . . . -1,600,000

(j) Amount payable from the Public Resources Account, Cigarette and
Tobacco Products Surtax Fund (Item 3940-001-0235)  . . .
-1,655,000 

(k) Amount payable from the Natural Resources Infrastructure Fund
(Item 3940-001-0383)  . . . 0 

(l) Amount payable from the Integrated Waste Management Account,
Integrated Waste Management Fund (Item 3940-001-0387)  . . .
-4,937,000

(m) Amount payable from the State Revolving Fund Loan Subaccount
(Item 3940-001-0417)  . . . -442,000

(n) Amount payable from the Small Communities Grant Subaccount
(Item 3940-001-0418)  . . . -434,000

(o) Amount payable from the Water Recycling Subaccount (Item
3940-001-0419)  . . . -140,000

(p) Amount payable from the Drainage Management Subaccount (Item
3940-001-0422)  . . . -66,000

(q) Amount payable from the Delta Tributary Watershed Subaccount
(Item 3940-001-0423)  . . . -224,000

(r) Amount payable from the Seawater Intrusion Control Subaccount
(Item 3940-001-0424)  . . . -34,000

(s) Amount payable from the Underground Storage Tank Tester
Account (Item 3940-001-0436)  . . . -51,000

(t) Amount payable from the Underground Storage Tank Cleanup
Fund (Item 3940-001-0439)  . . . -185,823,000

(u) Amount payable from the Underground Storage Tank Fund (Item
3940-001-0475)  . . . -435,000

(v) Amount payable from the 1984 State Clean Water Bond Fund
(Item 3940-001-0740)  . . . -1,001,000

(w) Amount payable from the 1988 Clean Water and Water
Reclamation Fund (Item 3940-001-0764)  . . . -148,000

(x) Amount payable from the Federal Trust Fund (Item 3940-0010890)
. . . -23,855,000

(y) Amount payable from the Special Deposit Fund (Item
3940-001-0942)  . . . -605,000

Provisions:

1. Notwithstanding any other provision of law, upon approval and
order of the Director of Finance, the State Water Resources Control
Board may borrow sufficient funds, from special funds that otherwise
provide support for the board, for cash purposes.  Any such loans are

to be repaid with interest at the rate earned in the Pooled Money
Investment Account. 

2. Of the amount appropriated by this item, $272,000 shall be used to

review applications for a hydroelectric project license for
compliance
with the federal Clean Water Act. Any fees received from applicants
shall be used to reduce expenditures from the General Fund.

3. Of the amount appropriated by this item, (a) $1,000,000 shall be
used to develop, implement, and enforce a coastal nonpoint source
pollution control program enacted by Senate Bill 1453 of the 1997-98
Regular Session, (b) $250,000 shall be used for the Resource
Conservation District of Greater San Diego County to implement
nonpoint source pollution education in San Diego County, (c)
$1,000,000 shall be used by the San Francisco Regional Water Quality
Control Board for a nonpoint source pollution prevention grant
program, of which $200,000 is to be used to provide fish and
shellfish
monitoring and public notification as required in Assembly Bill 2231
of the 1997-98 Regular Session, (d) $500,000 shall be used by the San

Diego Regional Water Quality Control Board for a nonpoint source
pollution prevention grant program, (e) $500,000 shall be used by the

Los Angeles Regional Water Quality Control Board for a nonpoint
source pollution prevention grant program, and (f) $2,500,000 shall
be
used to fund the City of San Diego Recycled Water for Industry
Project to demonstrate that recycled wastewater can be repurified
sufficiently to be suitable for various industrial purposes. 

3940-001-0025--For support of State Water Resources Control Board,
for payment to Item 3940-001-0001, payable from the Leaking
Underground Storage Tank Cost Recovery Fund  . . . 5,530,000

3940-001-0028--For support of State Water Resources Control Board,
for payment to Item 3940-001-0001, payable from the Unified
Program Account  . . . 599,000

Provisions:

1. It is intended that the total funding provided by this item and
Item
3940-001-0475 be maintained in 1998-99 for the state underground
storage tank regulatory activities. In the event that revenues for
the
Unified Program Account are insufficient to support the appropriation

in this item because of delays in shifting programmatic
responsibilities
to certified unified program agencies, this item may be reduced and a

corresponding increase may be  made to Item 3940-001-0475, upon
approval of the Department of Finance.

  Any funding adjustments to this item or to Item 3940-001-0475
which would result in a total expenditure authorization exceeding the

cumulative appropriation amount of these two items remain subject to
the provisions of Section 27.00.

3940-001-0193--For support of State Water Resources Control Board,
for payment to Item 3940-001-0001, payable from the Waste
Discharge Permit Fund  . . . 15,659,000

3940-001-0225--For support of State Water Resources Control Board,
for payment to Item 3940-001-0001, payable from the Environmental
Protection Trust Fund  . . . 1,600,000

3940-001-0235--For support of State Water Resources Control Board,
for payment to Item 3940-001-0001, payable from the Public
Resources Account, Cigarette and Tobacco Products Surtax Fund  . .
. 1,655,000

3940-001-0387--For support of State Water Resources Control Board,
for payment to Item 3940-001-0001, payable from the Integrated
Waste Management Account, Integrated Waste Management Fund  .
. . 4,937,000

3940-001-0417--For support of State Water Resources Control Board,
for payment to Item 3940-001-0001, payable from the State Revolving
Fund Loan Subaccount  . . . 442,000

3940-001-0418--For support of State Water Resources Control Board,
for payment to Item 3940-001-0001, payable from the Small
Communities Grant Subaccount  . . . 434,000

3940-001-0419--For support of State Water Resources Control Board,
for payment to Item 3940-001-0001, payable from the Water
Recycling Subaccount  . . . 140,000

3940-001-0422--For support of State Water Resources Control Board,
for payment to Item 3940-001-0001, payable from the Drainage
Management Subaccount  . . . 66,000

3940-001-0423--For support of State Water Resources Control Board,
for payment to Item 3940-001-0001, payable from the Delta Tributary
Watershed Subaccount  . . . 224,000

3940-001-0424--For support of State Water Resources Control Board,
for payment to Item 3940-001-0001, payable from the Seawater
Intrusion Control Subaccount  . . . 34,000

3940-001-0436--For support of State Water Resources Control Board,
for payment to Item 3940-001-0001, payable from the Underground
Storage Tank Tester Account  . . . 51,000

3940-001-0439--For support of State Water Resources Control Board,
for payment to Item 3940-001-0001, payable from the Underground
Storage Tank Cleanup Fund  . . . 185,823,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

3940-001-0475--For support of State Water Resources Control Board,
for payment to Item 3940-001-0001, payable from the Underground
Storage Tank  Fund  . . . 435,000

Provisions:

1. Pursuant to subdivision (b) of Section 25287 of the Health and
Safety Code, the surcharge to be included in the fee paid to a local
agency by each person who submits an application for a permit to
operate an underground storage tank shall be $56 per tank, during the

1998-99 fiscal year. This surcharge shall be transmitted to the State

Water Resources Control Board and deposited in the Underground
Storage Tank Fund.

3940-001-0740--For support of State Water Resources Control Board,
for payment to Item 3940-001-0001, payable from the 1984 State
Clean Water Bond  Fund  . . . 1,001,000

3940-001-0764--For support of State Water Resources Control Board,
for payment to Item 3940-001-0001, payable from the 1988 Clean
Water and Water Reclamation Fund  . . . 148,000

3940-001-0890--For support of State Water Resources Control Board,
for payment to Item 3940-001-0001, payable from the Federal Trust
Fund  . . . 23,855,000

3940-001-0942--For support of State Water Resources Control Board,
for payment to Item 3940-001-0001, payable from the Special Deposit
Fund  . . . 605,000

3940-011-0740--For transfer by the State Controller from the 1984
State Clean Water Bond Fund to the State Water Pollution Control
Revolving Fund  . . . 1,213,000 

3940-101-0001--For local assistance, State Water Resources Control
Board  . . . 4,525,000

Schedule:

(a) City of Mendota Wastewater Treatment Plant Upgrades  . . .
2,500,000

(b) Lake County Sanitation District, Phase II of the Regional
Wastewater Recycling Program:  Clearlake Basin 2000 Project  . . .
2,000,000

(c) Compton Municipal Water District:  Chlorination Facility
Upgrades  . . . 25,000 

3940-101-0744--For local assistance, State Water Resources Control
Board, payable from the 1986 Water Conservation and Water Quality
Bond Fund  . . . 13,000,000

3940-102-0422--For local assistance, State Water Resources Control
Board, payable from the Drainage Management Subaccount  . . .
2,500,000

3940-490--Reappropriation, State Water Resources Control Board.
Notwithstanding any other provision of law  and without regard to

whether the Yucaipa Valley Water District exhausts all administrative

remedies  , $280,000 of the amount appropriated in Item
3940-001-0383 of Section 2.00 of the Budget Act of 1997 (Ch. 282,
Stats. 1997) is hereby reappropriated for the purpose specified in
Section 36 of Chapter 928 of the Statutes of 1997, to the State Water

Resources Control Board to reimburse the Yucaipa Valley Water
District for disputed audit repayments. The board shall transfer
$280,000 to the Yucaipa Valley Water District, pursuant to Section 36

of Chapter 928 of the Statutes of 1997  , on the operative date
of
this section  .

3960-001-0001--For support of Department of Toxic Substances
Control, for payment to Item 3960-001-0014  . . . 17,474,000

Provisions:

1. The Director of the Department of Toxic Substances Control may
expend $11,072,000 from this item for the following activities at the

Stringfellow Federal Superfund site: (1) operation and maintenance of

pretreatment plants to treat contaminated groundwater extracted from
the site, (2) site maintenance and groundwater monitoring, and (3)
implementation of work to stabilize the site.

3960-001-0013--For support of Department of Toxic Substances
Control, for payment to Item 3960-001-0014, payable from the Federal
Receipts Account, Hazardous Waste Control Account  . . . 1,074,000

Provisions:

1. Upon request of the Department of Toxic Substances Control, and
approval of the Department of Finance, the Controller shall augment
this item in an amount not to exceed the proceeds of federal
hazardous
waste control fees deposited in the Federal Receipts Account in the
1998-99 fiscal year, pursuant to Section 25174.8 of the Health and
Safety Code.

3960-001-0014--For support of Department of Toxic Substances
Control, payable from the Hazardous Waste Control Account  . . .

25,211,000 
 25,319,000 

Schedule:

(a) 12-Site Mitigation  . . .  71,084,000 
 70,630,000 

(b) 13-Hazardous Waste Management  . . .  36,675,000

 36,725,000 

(c) 15-Statewide Support  . . . 3,731,000

(d) 19.01-Administration  . . . 24,071,000

(e) 19.02-Distributed Administration  . . . -24,071,000

(f) 20-Science, Pollution Prevention and Technology  . . . 
9,902,000 
 9,914,000 

(g) Reimbursements  . . . -10,864,000

(h) Amount payable from General Fund (Item 3960-001-0001)  . . .
-17,474,000

(i) Amount payable from Federal Receipts Account, HWCA (Item
3960-001-0013)  . . . -1,074,000

(j) Amount payable from Illegal Drug Lab Cleanup Account (Item
3960-001-0065)  . . .  -10,927,000 
 -10,427,000 

(k) Amount payable from California Used Oil Recycling Fund (Item
3960-001-0100)  . . . -224,000

(l) Amount payable from Toxic Substances Control Account (Item
3960-001-0557)  . . . -28,252,000

(m) Amount payable from Federal Trust Fund (Item 3960-0010890)
. . . -27,366,000

Provisions:

 1. This item appropriates $617,000 less than the amount
requested by the Department of Toxic Substances Control in the
Governor's Budget. The amount of the reduction equals the sum of the
amount, as reported by the Department of Toxic Substances Control
pursuant to paragraph (8) of subdivision (d) of Section 25174 of the
Health and Safety Code, budgeted by the department for the 1998-99
fiscal year to fund the initiative known as the Regulatory Structure
Update described on page EP32 of the Governor's Budget, 1998-99.
The reduction of this item by this total amount is a formal action of
the
Legislature within the meaning of Section 13332.15 of the
Government Code. The Legislature declares its intent to (a) deny
funding for the initiative known as the Regulatory Structure Update
and (b) prohibit the use of any other appropriation to fund the
initiative
known as the Regulatory Structure Update.

2. In addition to the funds otherwise appropriated by this item, the
sum
of $1,000,000 is hereby appropriated from the Hazardous Waste
Control Account for a new hazardous waste manifest tracking system
within the Department of Toxic Substances Control. The department
shall follow an alternative procurement process in which it states
its
business requirements and accepts proposals from the vendor
community for a new hazardous waste manifest tracking system. The
business requirements for the system design shall include, but not be

limited to, collection of all data fields contained on the Uniform
Hazardous Waste Manifest form. Up to $100,000 may be expended to
contract with an independent vendor to assist the department in
developing its procurement documents and choosing a solution
contained in the bids received. After choosing a proposal, the
department must submit a Feasibility Study Report to the Department
of Information Technology and the Department of Finance for review
and approval. Funds may be expended to implement a manifest
tracking system no sooner than 30 days after the department provides
the Chairperson of the Joint Legislative Budget Committee and the
chairpersons of the legislative fiscal committees of each house with
(a)
the chosen design and (b) written approval by the Department of
Information Technology and the Department of Finance. 

3960-001-0018--For support of Department of Toxic Substances
Control, payable from the Site Remediation Account  . . . 6,750,000

Schedule:

(a)  12.10.030.101--Frontier   
12.10.030.190--Frontier
  Fertilizer: Soil and Groundwater  . . . 300,000

(b)  12.10.030.110--McCormick   
12.10.030.195--McCormick   and Baxter  . . . 1,500,000

(c)  12.10.030.036--Modesto  
12.10.030.200--Modesto
  Groundwater  . . . 25,000

(d)  12.10.030.175--San    12.10.030.205--San

Gabriel-Richwood  . . . 40,000

(e)  12.10.030.116--Selma  
12.10.030.210--Selma 
Pressure Treating: Groundwater  . . . 25,000

(f)  12.10.030.117--Selma  
12.10.030.215--Selma 
Pressure Treating: Soil  . . . 500,000

(g)  12.10.030.081--DC    12.10.030.220--DC

Metals  . . . 825,000

(h)  12.10.030.082--Hard    12.10.030.225--Hard

Chrome Products  . . . 550,000

(i)  12.10.030.076--Gardena  
12.10.030.230--Gardena
  Valley 1 & 2  . . . 2,000,000

(j)  12.10.030.181--Aero    12.10.030.235--Aero

Quality Plating  . . . 250,000

(k)  12.10.030.182--Precision  
12.10.030.240--Precision
  Media  . . . 260,000

(l)  12.10.030.186--Lava Corp  
12.10.030.245--Lava
Cap   Mine  . . . 475,000

Provisions:

1. Notwithstanding any other provisions of this act, the Director of
the
Department of Toxic Substances Control may transfer amounts to or
from projects scheduled in this item, reduce projects, schedule
additional projects, or remove scheduled projects as long as the
total
amount expended under the item does not exceed the amount
appropriated by the item, including any augmentation authorized under

Provision 3.

2. The Director of the Department of Toxic Substances Control shall
report, in writing, not later than 30 days after the end of the
fiscal year
to the Chairperson of the Joint Legislative Budget Committee, the
chairperson of the legislative fiscal committees that act on the
department's budget, the chairperson of the Environmental Safety and
Toxic Materials policy committee of the Assembly and the chairperson
of the Environmental Quality policy committee of the Senate any
actions taken under Provision 1.

3. Upon request of the Director of the Department of Toxic Substances

Control, and approval of the Department of Finance, the Controller
shall augment this item in an amount which does not exceed the
amount transferred to the Site Remediation Account pursuant to Item
3960-012-0557.

4. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

3960-001-0065--For support of Department of Toxic Substances
Control, for payment to Item 3960-001-0014, payable from the Illegal
Drug Lab Cleanup Account  . . .  10,927,000 
 10,427,000 

3960-001-0100--For support of Department of Toxic Substances
Control, for payment to Item 3960-001-0014, payable from the
California Used Oil Recycling Fund  . . . 224,000

3960-001-0456--For support of Department of Toxic Substances
Control, payable from the Expedited Site Remediation Trust Fund  .
. . 1,260,000

Provisions:

1. Notwithstanding any other provisions of law, upon request of the
Department of Toxic Substances Control, the Department of Finance
may augment the amount available for expenditure in this item to pay
costs associated with orphan shares at sites selected for the
Expedited
Site Remediation Pilot Program from any uncommitted funds in the
Expedited Site Remediation Trust Fund not sooner than 30 days after
notification in writing of the necessity therefor to the chairperson
of
the committee in each house of the Legislature that considers
appropriations, the chairpersons of the committees and the
appropriate
subcommittees in each house that consider the budget, and the
Chairperson of the Joint Legislative Budget Committee.

2. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

3960-001-0557--For support of Department of Toxic Substances
Control, payable from the Toxic Substances Control Account  . . .
28,252,000

Provisions:

1. Of the funds appropriated by this item, $750,000 shall be used for

the purposes of emergency response activity pursuant to Section 25354

of the Health and Safety Code, in lieu of any appropriation made
pursuant to that section.

2. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

3. The first $540,000 in fines and penalties deposited in the Toxic
Substances Control Account in the 1998-99 fiscal year pursuant to
Article 8 (commencing with Section 25180) of Chapter 6.5 of Division
20 of the Health and Safety Code, exclusive of fines and penalties
transferred to the Hazardous Substance Account pursuant to Section
25192 of the Health and Safety Code for expenditure in accordance
with Section 25385.9 of the Health and Safety Code, shall be
transferred to the Expedited Site Remediation Trust Fund, and any
amount in excess of $540,000 shall be transferred to either the Site
Remediation Account or the Expedited Site Remediation Trust Fund
for expenditure for hazardous substance release site projects,
including
National Priority List sites, state orphan sites, and orphan share
sites
selected for the Expedited Site Remediation Pilot Program. The
department shall assign priority to these projects on the basis of
economic benefit and relative threat to the public health and the
environment. Any contract funds to be expended for National Priority
List sites or state orphan sites shall be transferred to the Site
Remediation Account. Any funds to be expended on orphan shares for
sites selected for the Expedited Site Remedia-tion Pilot Program
shall
be transferred to the Expedited Site Remediation Trust Fund.

4. Notwithstanding paragraph (a)(5) of Section 25173.7 of the Health
and Safety Code, the Director of the Department of Toxic Substances
Control may expend up to $550,000 from this item for the purposes of
entering into an interagency agreement with the Board of Equalization

for administration and collection of environmental fees and to close
out the Railroad Accident Prevention and Immediate Deployment fee
collection program.

3960-001-0890--For support of Department of Toxic Substances
Control, for payment to Item 3960-001-0014, payable from the Federal
Trust Fund  . . . 27,366,000

3960-011-0001--For transfer by the State Controller to the Illegal
Drug
Lab Cleanup Account  . . .  10,927,000 
 10,427,000 

3960-011-0058-For transfer by the State Controller from the Rail
Accident Prevention and Response Fund to the Hazardous Spill
Prevention Account, Rail Accident Prevention and Response Fund  .
. . (100,000)

3960-011-0059--For transfer by the State Controller from the
Hazardous Spill Prevention Account, Rail Accident and Prevention
Response Fund, to the Toxic Substances Control Account  . . .
(200,000)

Provisions:

1. The amount specified in this item is an estimate of the funds
available in the Hazardous Spill Prevention Account and does not
represent a limit on the funds that may be transferred.

3960-011-0557--For transfer by the State Controller from the Toxic
Substances Control Account to the Expedited Site Remediation Trust
Fund  . . . (540,000)

Provisions:

1. Notwithstanding any other provisions of law, upon request of the
Department of Toxic Substances Control, and approval of the
Department of Finance, the Controller shall transfer funds from the
Toxic Substances Control Account to the Expedited Site Remediation
Trust Fund, pursuant to Chapter 6.85 (commencing with Section
25396) of Division 20 of the Health and Safety Code. The amount of
the funds transferred shall not exceed the proceeds of fines and
penalties deposited in the Toxic Substances Control Account in the
1998-99 fiscal year, exclusive of the fines and penalties transferred
to
the Site Remediation Account pursuant to Provision 3 of Item
3960-001-0557, and to the Hazardous Substance Account pursuant to
Section 25192 of the Health and Safety Code for expenditure in
accordance with Section 25385.9 of the Health and Safety Code. The
Department of Toxic Substances Control shall assign priority to
hazardous substance release site projects as described in Provision 3

of Item 3960-001-0557, and shall not cause to be transferred an
amount that, when added to the funds available as of July 1, 1998, is

in excess of the potential liability of the State for cleanup costs
associated with orphan share sites selected for the Expedited Site
Remediation Pilot Program as of March 31, 1999.

2. The amount specified in this item is an estimate of the funds
available from the proceeds of fines and penalties described in
Provision 1, and does not represent a limit on the funds that may be
                                       transferred.

3. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

3960-012-0001--For transfer by the State Controller to the Toxic
Substances Control Account  . . . 4,800,000

Provisions:

1. The amount transferred by this item shall be expended for direct
site
remediation costs, as defined in Section 25337 of the Health and
Safety Code, and shall be used to meet part of the requirement of
paragraph (a)(1) of Section 25173.7 of the Health and Safety Code.

3960-012-0014--For transfer by the State Controller, upon request of
the Director of the Department of Toxic Substances Control, from the
Hazardous Waste Control Account to the Toxic Substances Control
Account  . . . (5,000,000)

Provisions:

1. Upon request of the Director of the Department of Toxic Substances

Control, the State Controller shall transfer not more than $5,000,000

from the Hazardous Waste Control Account to the Toxic Substances
Control Account.

3960-012-0557--For transfer by the State Controller from the Toxic
Substances Control Account to the Site Remediation Account  . . .
(6,750,000)

Provisions:

1. Notwithstanding any other provisions of law, upon request of the
Director of the Department of Toxic Substances Control, and approval
of the Department of Finance, the Controller shall increase the
amount
transferred from the Toxic Substances Control Account to the Site
Remediation Account, pursuant to subdivision (h) of Section 25187 of
the Health and Safety Code. Any increase in the amount transferred
shall not exceed the proceeds of fines and penalties deposited in the

Toxic Substances Control Account in the 1998-99 fiscal year,
exclusive of the fines and penalties transferred to the Expedited
Site
Remediation Trust Fund pursuant to subdivision (a) of Section
25399.1 of the Health and Safety Code, and to the Hazardous
Substance Account pursuant to Section 25192 of the Health and Safety
Code for expenditure in accordance with Section 25385.9 of the
Health and Safety Code. The Department of Toxic Substances Control
shall assign priority to hazardous substance release site projects as

described in Provision 3 of Item 3960-001-0557.

2. The amount appropriated in this item may include revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code. 

3960-101-0001--For local assistance, Department of Toxic Substances
Control, Program 12, for allocation to the City of Signal Hill Police

Department for asbestos removal  . . . 100,000 

3980-001-0001--For support of Office of Environmental Health
Hazard Assessment  . . . 6,451,000

Schedule:

(a) 10-Health Risk Assessment  . . . 11,174,000

(b) Reimbursements  . . . -3,909,000

(c) Amount payable from the California Environmental License Plate
Fund (Item 3980-001-0140)  . . . -814,000

3980-001-0140--For support of Office of Environmental Health
Hazard Assessment, for payment to Item 3980-001-0001, payable
from the California Environmental License Plate Fund  . . .
814,000 

3985-001-0001--To the Secretary for Environmental Protection,
Special Environmental Programs  . . . 3,396,000

Schedule:

(a) 10-Permit Assistance Centers  . . . 2,821,000

(b) 20-Scientific Peer Review  . . . 1,120,000

(bx) 30-Circuit Prosecutor Project  . . . 404,000

(c) Amount payable from the Hazardous Waste Control Account (Item
3985-001-0014)  . . . -298,000

(d) Amount payable from the Department of Pesticide Regulation
Fund (Item 3985-001-0106)  . . . -184,000

(dx) Amount payable from the Recycling Market Development
Revolving Loan Account (Item 3985-001-0281)  . . . -135,000

(e) Amount payable from the Integrated Waste Management Account,
Integrated Waste Management Fund (Item 3985-001-0387)  . . .
-150,000

(f) Amount payable from the Underground Storage Tank Cleanup
Fund (Item 3985-001-0439)  . . . -48,000

(g) Amount payable from the State Water Quality Control Fund (Item
3985-001-0679)  . . . -134,000

Provisions:

1. The funds appropriated by this item may be transferred to Item
0555-001-0001 for administration of the Permit Assistance Centers,
the Scientific Peer Review, and Circuit Prosecutor Project programs.


3985-001-0014--To the Secretary for Environmental Protection,
Special Environmental Programs, for payment to Item 3985-001-0001,
payable from the Hazardous Waste Control Account  . . . 298,000

3985-001-0106--To the Secretary for Environmental Protection,
Special Environmental Programs, for payment to Item 3985-001-0001,
payable from the Department of Pesticide Regulation Fund  . . .
184,000

3985-001-0281--To the Secretary for Environmental Protection,
Special Environmental Programs, for payment to Item 3985-001-0001,
payable from the Recycling Market Development Revolving Loan
Account  . . . 135,000

Provisions:

1. Notwithstanding any of the provisions of law, funds appropriated
by
this item may be used for the Circuit Prosecutor Project.

3985-001-0387--To the Secretary for Environmental Protection,
Special Environmental Programs, for payment to Item 3985-001-0001,
payable from the Integrated Waste Management Account, Integrated
Waste Management Fund  . . . 150,000

3985-001-0439--To the Secretary for Environmental Protection,
Special Environmental Programs, for payment to Item 3985-001-0001,
payable from the Underground Storage Tank Cleanup Fund  . . .
48,000

3985-001-0679--To the Secretary for Environmental Protection,
Special Environmental Programs, for payment to Item 3985-001-0001,
payable from the State Water Quality Control Fund  . . . 134,000


                              HEALTH AND WELFARE

4100-001-0890--For support of the State Council on Developmental
Disabilities, payable from the Federal Trust Fund  . . . 6,074,000

Schedule:

(a) 10-State Council Planning and Operations  . . . 1,254,000

(b) 20-Community Program Development  . . . 1,426,000

(c) 30-Allocation to Area Boards  . . . 3,394,000

Provisions:

1. In the event federal funds from the Basic State Grant to the
State
Council on Developmental Disabilities are available to the council in

an amount exceeding the amounts appropriated in this item, the
additional funds shall be used only for the following purposes,
unless
the funds are specifically designated by federal law for other
purposes:

(a) To augment the allocation to the Program Development Fund.

(b) To fund the costs of salary and benefit increases approved by the

Legislature that exceed the Budget Act appropriation.

(c) To fund the implementation of any portion of the state plan as
approved by the council.

4110-001-0001--For support of Area Boards on Developmental
Disabilities  . . . 0

Schedule:

(a) 10-Area Board Services  . . . 6,806,000

(b) Reimbursements  . . . -6,806,000

4120-001-0001--For support of Emergency Medical Services
Authority  . . . 1,236,000

Schedule:

(a) 10-Emergency Medical Services Authority  . . . 3,028,000

(b) Amount payable from the Emergency Medical Services Training
Program Approval Fund (Item 4120-001-0194)  . . . -14,000

(c) Amount payable from the Emergency Medical Services Personnel
Fund (Item 4120-001-0312)  . . . -780,000

(d) Amount payable from the Federal Trust Fund (Item
4120-001-0890).  . . . -998,000

4120-001-0194--For support of Emergency Medical Services
Authority, for payment to Item 4120-001-0001, payable from the
Emergency Medical Services Training Program Approval Fund  . . .
14,000

4120-001-0312--For support of Emergency Medical Services
Authority, for payment to Item 4120-001-0001, payable from the
Emergency Medical Services Personnel Fund  . . . 780,000

4120-001-0890--For support of Emergency Medical Services
Authority, for payment to Item 4120-001-0001, payable from the
Federal Trust Fund  . . . 998,000

4120-101-0001--For local assistance, Emergency Medical Services
Authority, Program 10, grants to local agencies  . . . 4,697,000

Provisions:

1. The General Fund support for poison control centers shall augment,

but not replace, local expenditures for existing poison control
center
services. These funds shall be used primarily to increase services to

underserved counties and populations and for poison prevention and
information services. The Director of the Emergency Medical Services
Authority may contract with eligible poison control centers for the
distribution of these funds.

2. Upon the request of the Director of the Emergency Medical
Services Authority, and subject to the approval of the Department of
Health Services, the California Medical Assistance Commission, and
the Department of Finance, moneys appropriated in this item may be
transferred to the Emergency Services and Supplemental Payments
Fund for expenditure as provided in Item 4260-101-0693 for local
assistance for the purposes specified in that item.

3. The Emergency Medical Services Authority shall use the following
guidelines in administering state-funded grants to local agencies:
(a)
funding eligibility shall be limited to rural multicounty regions
that
demonstrate a heavy use of the emergency medical services system by
nonresidents, (b) local agencies shall provide matching funds of at
least $1 for each dollar of state funds received, (c) state funding
shall
be used to provide only essential minimum services necessary to
operate the system, as defined by the authority, (d) no region shall
receive both federal and state funds in the same fiscal year for the
same purpose, and (e) the Emergency Medical Services Authority shall
monitor the use of the funds by recipients to assure that these funds

are used in an appropriate manner.

4. Each region shall be eligible to receive up to one-half of the
total
cost of a minimal system for that region, as defined by the Emergency

Medical Services Authority. However, the authority may reallocate
unclaimed funds among regions.

5. Notwithstanding Provision 3(b), each region with a population of
300,000 or less as of June 30, 1998, shall receive the full amount
for
which it is eligible if it provides a cash match of $0.41 per capita
or
more. Failure to provide local cash contributions at the specified
level
shall result in a proportional reduction in state funding.

6. The Emergency Medical Services Authority shall evaluate the
contractual objectives for regional agencies, to focus increased
funding
of regional agencies on unmet needs within the region. These unmet
needs shall be consistent with the Emergency Medical Services
System and Guidelines (EMSA
101) developed by the Emergency Medical Services Authority.

4120-101-0890--For local assistance, Emergency Medical Services
Authority, Program 10, payable from the Federal Trust Fund  . . .
2,084,000

4130-001-0632--For support of the Health and Welfare Agency Data
Center, payable from the Health and Welfare Agency Data Center
Revolving Fund  . . .  239,210,000 
 239,565,000 

Schedule:

(a) 10-Facilities Operations  . . .  91,953,000 
 91,780,000 

(b) 20-Administration  . . . 17,671,000

(c) 30-Systems Management Services  . . .  129,586,000

 130,114,000 

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance
may authorize expenditures for the Health and Welfare Agency Data
Center in excess of the amount appropriated not sooner than 30 days
after providing notification in writing to the chairperson of the
fiscal
committee of each house of the Legislature and the Chairperson of the

Joint Legislative Budget Committee, or no sooner than such lesser
time as the chairperson of the committee, or his or her designee, may

in each instance determine.

2. Funds appropriated in this item are in lieu of the amounts that
otherwise would have been appropriated pursuant to Section 11755 of
the Government Code.

3. Notwithstanding any other provision of law, the Health and Welfare

Agency Data Center shall submit a Feasibility Study Report or
equivalent federal planning document to the Department of Finance for

review and approval prior to award of the systems implementation
contract for each welfare automation consortium with the exception of

the Los Angeles Eligibility Automated Determination, Evaluation, and
Reporting System (LEADER) and ISAWS, for which the Health and
Welfare Agency Data Center shall continue to submit Special Project
Reports or the equivalent federal planning document.

4. The Health and Welfare Agency Data Center, in cooperation with
the Department of Social Services, shall develop a strategic plan for

the Child Welfare Services Case Management System (CWS/CMS)
on or before January 1, 1999. The plan shall (a) quantify the use,
growth, and refresh rates for hardware and software to meet the
objectives of CSW/CMS with a cost/benefit analysis to justify
expenditures and (b) outline a schedule for modifications and
enhancements based on program priorities. The strategic plan does not

relieve the data center from meeting other reporting requirements
such
as information technology reporting requirements, as defined in the
State Administrative Manual. 

5. On or before February 1, 1999, the Health and Welfare Data Center
and the State Department of Social Services, in consultation with the

Department of Information Technology and County Welfare Directors,
shall report to the Joint Legislative Budget Committee on how current

and planned automation systems meet the business requirements of
counties in determining eligibility for benefits, case management,
and
informational interfaces with other data bases necessary to implement

the state and federally required statewide automated welfare system.



4140-001-0001--For support of Office of Statewide Health Planning
and Development  . . . 847,000

Schedule:

(a) 10-Health Policy and Analysis  . . . 3,549,000

(b) 30-Health Professions Development  . . . 2,726,000

(c) 42-Facilities Development  . . . 20,218,000

(d) 45-Cal Mortgage Loan Insurance  . . . 3,753,000

(e) 60-Health Facilities Data  . . . 8,543,000

(f) 80.01-Administration  . . . 6,832,000

(g) 80.02-Distributed Administration  . . . -6,532,000

(h) Reimbursements  . . . -2,885,000

(i) Amount payable from the Hospital Building Fund (Item
4140-001-0121)  . . . -18,188,000

(j) Amount payable from the California Health Data and Planning
Fund (Item 4140-001-0143)  . . . -11,328,000

(k) Amount payable from the Registered Nurse Education Fund (Item
4140-001-0181)  . . . -736,000

(l) Amount payable from the Health Facilities Construction Loan
Insurance Fund (Section 129200, Health and Safety Code)  . . .
-4,163,000

(m) Amount payable from the Minority Health Professions Education
Fund (Section 128355, Health and Safety Code)   . . . -442,000

(n) Amount payable from the Federal Trust Fund (Federal Funds)  . .
. -500,000

4140-001-0121--For support of Office of Statewide Health Planning
and Development, for payment to Item 4140-001-0001, payable from
the Hospital Building Fund  . . . 18,188,000

4140-001-0143--For support of Office of Statewide Health Planning
and Development, for payment to Item 4140-001-0001, payable from
the California Health Data and Planning Fund  . . . 11,328,000

4140-001-0181--For support of Office of Statewide Health Planning
and Development, for payment to Item 4140-001-0001, payable from
the Registered Nurse Education Fund  . . . 736,000

4140-101-0001--For local assistance, Office of Statewide Health
Planning and Development  . . .  5,235,000 
 8,235,000 

Schedule: 

(aa) 10-Health Policy and Analysis  . . . 3,000,000 

(a) 30-Health Professions Development (Family Physician Training)
. . . 6,635,000

(b) Reimbursements  . . . -400,000

(c) Amount payable from the Federal Trust Fund (Item 4140-1010890)
. . . -1,000,000

Provisions:

1. Notwithstanding subdivision (a) of Section 2.00 of this act, or
any
other provision of law, the funds appropriated in this item for
contracts
with accredited medical schools or programs that train primary care
physicians' assistants or primary care nurse practitioners, as well
as
contracts with hospitals or other health care delivery systems
located
in California, that meet the standards of the Health Manpower Policy
Commission established pursuant to Article 1 (commencing with
Section 128200) of Chapter 4 of Part 3 of Division 107 of the Health
and Safety Code, shall continue to be available for the 1999-2000,
2000-2001, and 2001-2002 fiscal years.

4140-101-0890--For local assistance, Office of Statewide Health
Planning and Development, for payment to Item 4140-101-0001,
payable from the Federal Trust Fund  . . . 1,000,000

4140-111-0236--For local assistance, Office of Statewide Health
Planning and Development, Program 10, Health Policy and Analysis,
payable from the Unallocated Account, Cigarette and Tobacco
Products Surtax Fund  . . . 2,000,000

4170-001-0001--For support of Department of Aging  . . . 
4,101,000 
 3,886,000 

Schedule:

(a) 10-Nutrition  . . . 3,105,000

(b) 20-Senior Community Employment Service  . . . 446,000

(c) 30-Supportive Services and Centers  . . . 2,379,000

(d) 40-Special Projects  . . . 4,474,000

(e) 50.01-Administration  . . . 5,808,000

(f) 50.02-Distributed Administration  . . . -5,808,000

(g) Reimbursements  . . .  -1,769,000 
 -1,984,000 

(h) Amount payable from the State  HICAP Fund (Item
4170-0010289)  . . . -144,000

(i)

Amount payable from the Federal Trust Fund (Item 4170-001-0890)
. . . -4,390,000

Provisions:

1. The Department of Aging shall report to the fiscal committees of
the
Legislature no later than March 1, 1999, on the status of the
procurement  and    of   all new sites
funded through
the 1998-99 budget augmentation.

4170-001-0289--For support of Department of Aging, for payment to
Item 4170-001-0001, payable from the State HICAP Fund  . . .
144,000

4170-001-0890--For support of Department of Aging, for payment to
Item 4170-001-0001, payable from the Federal Trust Fund  . . .
4,390,000

Provisions:

1. The Department of Finance may authorize the transfer of funds
between this item and Item 4170-101-0890 no sooner than 30 days
after written notification to the chairpersons of the fiscal
committees
of each house and the Chairperson of the Joint Legislative Budget
Committee, or not sooner than whatever lesser time the Chairperson
of the Joint Legislative Budget Committee may determine. The
notification shall include: (1) the amount of the proposed transfer;
(2)
an identification of the purposes for which the funds will be used;
(3)
documentation that the proposed activities must be carried out in the

current year and that no other funds are available for their support;
and
(4) the impact of any transfer on the level of services.

4170-101-0001--For local assistance, Department of Aging  . . .

52,039,000 
 50,602,000 

Schedule:

(a) 10-Nutrition  . . . 64,506,000

(b) 20-Senior Community Employment Service  . . . 7,016,000

(c) 30-Supportive Services and Centers  . . .  34,399,000

 34,699,000 

(d) 40-Special Projects  . . . 59,280,000

(e) Reimbursements  . . .  -18,643,000 
 -20,380,000 

(f) Amount payable from the State  HICAP Fund (Item
4170-101-0289)  . . . -854,000

(g) Amount payable from the Federal Trust Fund (Item 4170-1010890)
. . . -93,665,000

Provisions:

1. Notwithstanding Section 26.00 of this act, the Department of
Finance, upon notification by the California Department of Aging,
may authorize transfers between Program 10--Nutrition and Program
30--Supportive Services and Centers in response to budget revisions
submitted by the Area Agencies on Aging.

2. Of the funds appropriated in Schedule (d) of this item, $2,000,000

shall be available for expenditure until June 30, 2001, for the
startup
costs related to Adult Day Health Care center expansion.

3. Of the funds appropriated in Schedule (d) of this item for
Linkages
sites, $15,000 may be used per site for the purchase of service.

4170-101-0289--For local assistance California Department of Aging,
for payment to Item 4170-101-0001, payable from the State HICAP
Fund  . . . 854,000

4170-101-0890--For local assistance, Department of Aging, for
payment to Item 4170-101-0001, payable from the Federal Trust Fund
. . . 93,665,000

Provisions:

1. Provision 1 of Item 4170-001-0890 is also applicable to this item.


2. Notwithstanding subdivision (d) of Section 28.00 of this act, the
Department of Finance upon notification by the California Department
of Aging may authorize augmentations in this item for budget
revisions submitted by Area Agencies on Aging and approved by the
Department of Aging for estimated entitlements of per-meal
reimbursements from the U.S. Department of Agriculture and for
funds allocated to Area Agencies on Aging for federal Title III
one-time-only allocations.

3. Notwithstanding Section 26.00 of this act, the Department of
Finance, upon notification by the Department of Aging, may authorize
transfers between Program 10--Nutrition and Program 30--Supportive
Services and Centers in response to budget revisions submitted by the

Area Agencies on Aging.

4180-001-0001--For support of Commission on  Aging  . . . 300,000

4180-001-0983--For support of Commission on Aging, payable from
the California Fund for Senior  Citizens  . . . 187,000

Provisions:

1. Funds appropriated in this item from the California Fund for
Senior
Citizens shall be allocated by the Commission on Aging for the
purposes specified in Section 18723 of the Revenue and Taxation
Code.

2. Pursuant to Section 18723 of the Revenue and Taxation Code, the
unencumbered balance of this item as well as the unencumbered
balance of prior year appropriations from the California Fund for
Senior Citizens may be carried over and expended in any following
fiscal year.

4180-002-0886--For support of Commission on Aging, payable from
the California Seniors Special  Fund  . . . 74,000

Provisions:

1. Pursuant to Section 18773 of the Revenue and Taxation Code, the
unencumbered balance of this item as well as the unencumbered
balance of prior year appropriations from the California Seniors
Special Fund may be carried over and expended in any following fiscal

year.

4180-002-0890--For support of Commission on Aging, payable from
the Federal Trust Fund  . . . 283,000

4200-001-0001--For support of the Department of Alcohol and Drug
Programs  . . . 4,288,000

Schedule:

(a) 15-Alcohol and Other Drug Services Program  . . . 27,435,000

(b) 30.01-State Administration  . . . 8,264,000

(c) 30.02-State Administration-- distributed  . . . -8,264,000

(d) Reimbursements  . . . -3,592,000

(e) Amount payable from Driving-Under-the-Influence Program
Licensing Trust Fund (Item 4200-001-0139)  . . . -1,675,000

(f) Amount payable from Narcotic Treatment Program Licensing Trust
Fund (Item 4200-001-0243)  . . . -1,041,000

(g) Amount payable from Audit Repayment Trust Fund (Item
4200-001-0816)  . . . -67,000

(h) Amount payable from the Federal Trust Fund (Item 4200-001-
0890)  . . . -16,772,000

Provisions:

1. Upon order of the Department of Finance, the Controller shall
transfer such funds as are necessary between this item and Item
4200-101-0001.

2. The Director of the Department of Finance may authorize the
transfer of the support General Fund appropriation among the Alcohol
and Other Drug Services Program and the Administration Program in
response to shifts in workload among the two programs.

4200-001-0139--For support of the Department of Alcohol and Drug
Programs, for payment to Item 4200-001-0001, payable from the
Driving-Under-the-Influence Program Licensing Trust Fund  . . .
1,675,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance
may authorize expenditures for the Driving-Under-the-Influence
Program Licensing Trust Fund in excess of the amount appropriated
not sooner than 30 days after notification in writing of the
necessity
therefor is provided to the chairpersons of the fiscal committees and

the Chairperson of the Joint Legislative Budget Committee, or not
sooner than whatever lesser time the chairperson of the committee, or

his or her designee, may in each instance determine.

4200-001-0243--For support of the Department of Alcohol and Drug
Programs, for payment to Item 4200-001-0001, payable from the
Narcotic Treatment Program Licensing Trust Fund  . . . 1,041,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance
may authorize expenditures for the Narcotic Treatment Program
Licensing Trust Fund in excess of the amount appropriated not sooner
than 30 days after notification in writing of the necessity therefor
is
provided to the chairpersons of the fiscal committees and the
Chairperson of the Joint Legislative Budget Committee, or not sooner
than whatever lesser time the chairperson of the committee, or his or

her designee, may in each instance determine.

4200-001-0816--For support of the Department of Alcohol and Drug
Programs, for payment to Item 4200-001-0001, payable from the
Audit Repayment Trust Fund  . . . 67,000

4200-001-0890--For support of the Department of Alcohol and Drug
Programs, for payment to Item 4200-001-0001, payable from the
Federal Trust Fund  . . . 16,772,000

Provisions:

1. Upon order of the Department of Finance, the Controller shall
transfer such funds as are necessary between this item and Item
4200-101-0890.

4200-101-0001--For local assistance, Department of Alcohol and Drug
Programs  . . .  66,197,000 
 82,897,000 

Schedule:

(a) 15-Alcohol and Other Drug Services Program  . . . 
340,470,000 
 342,170,000 

(b) Reimbursements  . . .  -65,095,000 
 -50,095,000 

(c) Amount payable from the Federal Trust Fund (Item 4200-1010890)
. . . -209,034,000

(d) Amount payable from Resident-Run Housing Revolving Fund
(Item 4200-101-0977)  . . . -144,000

Provisions:

1. Upon order of the Department of Finance, the Controller shall
transfer funds as are necessary between this item and Item
4200-001-0001.

2. Upon approval of the Department of Finance, one or more
short-term loans not to exceed a cumulative total of $78,824,000 may
be made available from the General Fund when there is a delay in the
allocation of federal Substance Abuse Prevention and Treatment
(SAPT) Block Grant funds to California. The loans shall be repaid,
with interest calculated pursuant to subdivision (a) of Section 16314

of the Government Code, upon receipt of the federal SAPT Block
Grant.

3. The funds appropriated by this item are available to provide
funding
for the state's share of expenditures for substance abuse services
provided to persons eligible for Medi-Cal.

4. Notwithstanding subdivision (a) of Section 2.00 and Section 26.00
of this act, the Department of Finance may authorize a transfer of
expenditure authority between Items 4200-101-0001 and
4200-102-0001 such that the funds appropriated by either item may be
used to pay the state and federal share of prior fiscal years
allowable
Medi-Cal costs that exceed the amount encumbered in prior fiscal
years. The Director of Finance shall notify the Legislature within 10

days after authorizing a transfer pursuant to this provision unless
prior
notification of the transfer has been included in the Medi-Cal
estimates
submitted pursuant to Section 14100.5 of the Welfare and Institutions

Code.

5. Notwithstanding any other provision of law, both the federal and
nonfederal shares of any money recovered for previously paid Drug
Medi-Cal program services provided pursuant to Chapter 7
(commencing with Section 14000) of Part 3 of Division 9 of the
Welfare and Institutions Code are hereby appropriated and shall be
expended as soon as practicable for Drug Medi-Cal services as defined

in the Welfare and Institutions Code.

6. Notwithstanding Sections 26.00, 28.00 and 28.50 of this act, the
Director of Finance shall authorize the transfer of funds from this
item
to Item 4200-102-0001 as necessary to maintain the funding level for
the perinatal substance abuse treatment program at a minimum level
of twenty-five million dollars ($25,000,000).

7. Of the funds appropriated in this item that are carried over from
prior fiscal years, $3,000,000 per year shall be allocated to
counties on
a competitive grant basis to develop and expand drug court-related
substance abuse treatment in the 1998-99 and 1999-2000 fiscal years.


8. The reimbursements scheduled in this item, received from the
Department of Social Services for the purposes of providing services
pursuant to the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, may not be used as a match to any other
fund source as these funds have been budgeted to meet the state's
Temporary Assistance for Needy Families maintenance-of-effort
requirement. 

9. The $5,000,000 appropriated by this item for drug court treatment
services shall be allocated on a competitive basis. Selected counties

shall have (1) a drug court program in place, (2) northern and
southern
California representation, and (3) rural and urban representation.

10. Of the funds appropriated by this item, $5,000,000 shall be used
to fund drug or alcohol treatment services for youth, or both.
Priority
for $2,000,000 of this amount shall be given to those counties with
the
highest concentration of alcohol- and drug-related arrests, as
reported
by the Department of Justice.

11. Of the funds appropriated by this item, $8,000,000 in federal
Temporary Assistance for Needy Families reimbursements shall be
used to fund the California Perinatal Treatment Network perinatal
treatment programs.  

9. (a) Of the amount appropriated by this item, $8,000,000 shall be
available for competitive grants for the Drug Court Demonstration
Partnership Program only if that program is enacted by a statute that

is effective on or before January 1, 1999. The Department of Alcohol
and Drug Programs shall collaborate with the Administrative Office
of the Courts in the design and implementation of the grant program.


(b) Of the funds identified in this provision, up to $650,000 may be
transferred to Item 4200-001-0001 for expenditure by the Department
of Alcohol and Drug Programs. Of the amount available for transfer
by this subdivision, up to $150,000 is available for oversight and
implementation and up to $500,000 is available to contract for
evaluation of the competitive grants as provided for in subdivision
(a).

10. Of the amount appropriated by this item, $5,000,000 shall be used

for expansion of youth substance abuse treatment services. The
Department of Alcohol and Drug Programs shall award these funds to
counties on a competitive basis, giving priority to counties with a
high
incidence of youth substance abuse. The department shall award
$3,000,000 to counties in urban areas of the state, and $2,000,000 to

counties in rural areas.

11. Of the funds appropriated by this item, the amount of $3,100,000
shall be used to fund the existing California Perinatal Treatment
Network perinatal treatment programs and $3,000,000 shall be
allocated on a competitive basis for new perinatal treatment
programs.

12. By August 1, 1998, the Department of Alcohol and Drug Programs
(DADP) and the California Department of Corrections (CDC) shall
convene a workgroup for the purpose of examining and developing a
system for coordinating the delivery of treatment services to
parolees.
At a minimum, the system shall (1)
ensure coordination among the CDC, the DADP and county drug and
alcohol programs, and (2)
address rate structures, treatment capacity, program standards, and
licensing requirements. The workgroup shall submit on or before
March 1, 1999, a report of its findings and recommendations to the
appropriate fiscal and policy committees of the Legislature,
including
any recommendations for statutory change. The workgroup shall
consist of representatives of county drug and alcohol administrators,

treatment service providers, the DADP, the CDC, the California Youth
Authority, and the Legislature.

13. The Department of Finance shall complete, on a reimbursable
basis, a performance audit of the Department of Alcohol and Drug
Programs' procedures in allocating funds in a timely manner and of
county procedures. 

4200-101-0890--For local assistance, Department of Alcohol and Drug
Programs, for payment to Item 4200-101-0001, payable from the
Federal Trust Fund  . . . 209,034,000

Provisions:

1. Upon order of the Department of Finance, the Controller shall
transfer such funds as are necessary between this item and Item
4200-001-0890.

2. The Department of Alcohol and Drug Programs shall require county
offices of alcohol and drug programs to give funding priority, within

the funds expended on youth prevention programs, to establishing,
expanding, or improving programs for the target populations
identified
by the federal grant requirements.

4200-101-0977--For local assistance, Department of Alcohol and Drug
Programs, for payment to Item 4200-101-0001, payable from the
Resident-Run Housing Revolving Fund  . . . 144,000

Provisions:

1. To the extent that moneys available in the Resident-Run Housing
Revolving Trust Fund are less than the amount appropriated by this
item, this appropriation shall be limited to that lesser amount.

2. Notwithstanding any other provision of law, if revenues and loan
repayments to the Resident-Run Housing Revolving Trust Fund are
sufficient to create additional allocation workload, the Director of
Finance may authorize expenditures for the Department of Alcohol
and Drug Programs in excess of the amount appropriated not sooner
than 30 days after notification in writing of the necessity therefor
is
provided to the chairpersons of the fiscal committees and the
Chairperson of the Joint Legislative Budget Committee, or not sooner
than whatever lesser time the chairperson of the committee, or his or

her designee, may in each instance determine.

4200-102-0001--For local assistance, Department of Alcohol and Drug
Programs, for perinatal substance abuse treatment programs  . . .
21,041,000

Schedule:

(a) 15-Alcohol and Other Drug Services Program  . . . 24,610,000

(b) Reimbursements  . . . -3,569,000

Provisions:

1. Upon order of the Department of Finance, the Controller shall
transfer funds as are necessary between this item and Item
4200-001-0001 for support costs associated with the perinatal
substance abuse treatment programs.

2. The funds appropriated by this item, exclusive of funds allocated
to
alcohol and drug-free living programs and transitional living
programs,
are available to provide funding for the state's share of
expenditures for
perinatal substance abuse services provided to persons eligible for
Medi-Cal.

3. Provisions 4 and 5 of Item 4200-101-0001 also apply to this item.


4. Notwithstanding Sections 26.00, 28.00 and 28.50 of this act, the
Director of Finance shall authorize the transfer of funds to this
item
from Item 4200-101-0001 as necessary to maintain the funding level
for the perinatal substance abuse treatment program at a minimum
level of twenty-five million dollars ($25,000,000).

4200-490--Reappropriation, Department of Alcohol and Drug
Programs. Notwithstanding any other provision of law, the 
unencumbered   balances of the following appropriations are
reappropriated for the purposes provided for in those appropriations.

Of the amounts reappropriated pursuant to this item, up to $1,400,000

shall be allocated to counties for costs incurred in connection with
serving residents of other counties. The funds reappropriated by this

item shall be available for encumbrance and expenditure until June
30,
1999:

0001--General Fund

(a) Item 4200-101-0001, Budget Act of 1996

(b) Item 4200-102-0001, Budget Act of 1996

(c) Item 4200-101-0001, Budget Act of 1997

(d) Item 4200-102-0001, Budget Act of 1997

4220-001-0001--For support of Child Development Policy Advisory
Committee appointed pursuant to Section 8286 of the Education Code
. . . 240,000

Schedule:

(a) 10-Child Development Policy Advisory Committee  . . . 468,000

(b) Reimbursements  . . . -228,000

4260-001-0001--For support of Department of Health Services  . . .
 175,417,000 
 182,437,000 

Schedule:

(1) 10-Public and Environmental Health  . . .  262,126,000

 265,689,000 

(2) 20-Health Care Services  . . .  394,039,000 
 398,174,000 

(3) 30.01-Departmental Administration  . . .  34,180,000

 34,370,000 

(4) 30.02-Departmental Administration Distributed  . . . -32,531,000

(5) Reimbursements  . . . -18,820,000

(6) Amount payable from the Breast Cancer Research Account (Item
4260-001-0007)  . . . -1,594,000

(7) Amount payable from the Breast Cancer Control Account (Item
4260-001-0009)  . . . -6,971,000

(8) Amount payable from the Nuclear Planning Assessment Special
Account (Item 4260-001-0029)  . . . -563,000

(9) Amount payable from the Motor Vehicle Account, State
Transportation Fund (Item 4260-001-0044)  . . . -473,000

(10) Amount payable from the Sale of Tobacco to Minors Control
Account (Item 4260-001-0066)  . . . -2,215,000

(11) Amount payable from the Occupational Lead Poisoning
Prevention Account, General Fund (Item 4260-001-0070)  . . .
-2,621,000

(12) Amount payable from the Medical Waste Management Fund
(Item 4260-001-0074)  . . . -1,138,000

(13) Amount payable from the Radiation Control Fund (Item
4260-001-0075)  . . . -12,854,000

(14) Amount payable from the Tissue Bank License Fund (Item
4260-001-0076)  . . . -164,000

(14.1) Amount payable from the Childhood Lead Poisoning Prevention
Fund (Item 4260-001-0080)  . . . -4,828,000

(15) Amount payable from the Export Document Program Fund (Item
4260-001-0082)  . . . -421,000

(16) Amount payable from the Clinical Laboratory Improvement Fund
(Item 4260-001-0098)  . . . -6,067,000

(17) Amount payable from the Health Statistics Special Fund (Item
4260-001-0099)  . . . -13,644,000

(18) Amount payable from the Wine Safety Fund (Item
4260-001-0116)  . . . -189,000

(19) Amount payable from the Water Device Certification Special
Account (Item 4260-001-0129)  . . . -139,000

(20) Amount payable from the Food Safety Fund (Item 4260-0010177)
. . . -2,874,000

(21) Amount payable from the Environmental Laboratory
Improvement Fund (Item 4260-0010179)  . . . -2,407,000

(22) Amount payable from the Genetic Disease Testing Fund (Item
4260-001-0203)  . . . -60,158,000

(23) Amount payable from the Low-Level Radioactive Waste Disposal
Fund (Item 4260-001-0227)  . . . -1,859,000

(24) Amount payable from the Health Education Account, Cigarette
and Tobacco Products Surtax Fund (Item 4260-001-0231)  . . .
-37,415,000

(25) Amount payable from the Hospital Services Account, Cigarette
and Tobacco Products Surtax Fund (Item 4260-001-0232)  . . .
-925,000

(26) Amount payable from the Physician Services Account, Cigarette
and Tobacco Products Surtax Fund (Item 4260-001-0233)  . . .
-236,000

(27) Amount payable from the Research Account, Cigarette and
Tobacco Products Surtax Fund (Item 4260-001-0234)  . . . -3,738,000

(28) Amount payable from the Unallocated Account, Cigarette and
Tobacco Products Surtax Fund (Item 4260-001-0236)  . . . -3,121,000

(29) Amount payable from the Domestic Violence Fund (Item
4260-001-0253)  . . . -565,000

(30) Amount payable from the Infant Botulism Treatment and
Prevention Fund (Item 4260-001-0272)  . . . -1,284,000

(31) Amount payable from the Safe Drinking Water Account (Item
4260-001-0306)  . . . -8,146,000

(32) Amount payable from the Registered Environmental Health
Specialist Fund (Item 4260-001-0335)  . . . -247,000

(33) Amount payable from the Mosquitoborne Disease Surveillance
Account (Item 4260-001-0478)  . . . -29,000

(34) Amount payable from Cancer Research Fund (Item
4260-0010589)  . . . -25,000,000

(35) Amount payable from the Emergency Services and Supplemental
Payments Fund (Item 4260-001-0693)  . . . -122,000

(36) Amount payable from the California Alzheimer's and Related
Disorders Research Fund (Item 4260-001-0823)  . . . -395,000

(37) Amount payable from the Medi-Cal Inpatient Payment
Adjustment Fund (Item 4260-001-0834)  . . . -790,000

(38) Amount payable from the Federal Trust Fund (Item
4260-0010890)  . . .  -260,368,000 
 -261,236,000 

(39) Amount payable from the Local Health Capital Expenditure
Account, County Health Services Fund (Item 4260-001-0900)  . . .
-17,000

Provisions:

1. Of the total amount of reimbursements in this item, $3,743,000
shall be available for administration, research, and training
projects.
Notwithstanding Section 28.00 of this act, the State Department of
Health Services shall report any new project over $200,000 or any
increase or decrease in excess of $400,000 for an identified project.


2. Except as otherwise prohibited by law, the department shall
promulgate emergency regulations to adjust the public health fees set

by regulation to an amount, such that if the new fees were effective
throughout the 1998-99 fiscal year, the estimated revenues would be
sufficient to offset at least 95 percent of the approved program
level
intended to be supported by those fees.

3. Effective July 1, 1998, the annual fee for a general acute care
hospital, acute psychiatric hospital, special hospital, general acute
care
rehabilitation hospital and chemical dependency recovery hospital
shall
be $46.11 per bed. Effective July 1, 1998, the annual fee for a
skilled
nursing facility, intermediate care facility, or intermediate care
facility
for the developmentally disabled is $147.25 per bed.

  The fees of the State Department of Health Services that are
subject
to the annual fee adjustment pursuant to subdivision (a) of Section
100445 of the Health and Safety Code shall be increased by 2.3
percent, effective July 1, 1998.

  Notwithstanding subdivision (b) of Section 100450 of the Health and

Safety Code, departmental fees that are subject to the annual fee
adjustment pursuant to subdivision (a) of Section 100450 of the
Health
and Safety Code shall be increased by 19.76 percent on a one-time
basis to support year 2000 automation costs, effective July 1, 1998.


4. Of the funds appropriated by this item and Item 4260-001-0890,
$37,000 and $110,000, respectively, are not available for expenditure

without prior approval by the Director of Finance, and not sooner
than
30 days after notification in writing of the necessity for these
expenditures is provided to the Chairperson of the Joint Legislative
Budget Committee, or not sooner than whatever lesser time the
chairperson of the committee, or his or her designee, may determine.

The funds identified in this provision shall be available exclusively
for
Medi-Cal field offices located in counties originally scheduled to be

transitioned from the existing fee-for-service delivery system to
managed care health plans during the 1998-99 fiscal year. To the
extent that these transitions do not occur as scheduled, the budgeted

savings will not be achieved. It is the intent of this provision to
provide
sufficient resources, subject to the requirement of legislative
notification, to process treatment authorization requests and thereby

avoid  adverse impact on either providers or beneficiaries.

5. When entering into contracts with health care service plans that
provide comprehensive dental benefits to Medi-Cal beneficiaries on an

at-risk basis, the State Department of Health Services may require
that
the health care service plans pay for the costs of the administrative
and
regulatory oversight required to monitor the contract compliance
terms
of the agreement with the department.

6. Of the amount appropriated by this item, $1,254,000 shall be used
only to conduct a study of the costs of outpatient services provided
to
Medi-Cal beneficiaries. 

7. Of the amount appropriated by Schedule (2) of this item, $300,000
shall be used to conduct a comprehensive physician rate study that,
at
a minimum, performs a market comparison to determine the equity of
Medi-Cal rates in both fee-for-services and capitated systems, and
explores operations for providing different rates for special
populations, including seriously and chronically ill individuals and
individuals with developmental disabilities.

8. The State Department of Health Services shall provide the fiscal
and
policy committees of each house of the Legislature with a copy of its

five-year strategic plan for implementing a statewide comprehensive
school health program by January 1, 1999.

9. Of the amount appropriated by this item, $150,000 shall be
available for the administrative support of the existing oversight
panel
for the Santa Susana Field Laboratory during the 1998-99 fiscal year.


10. The Bureau of State Audits shall provide the fiscal committees
and
appropriate policy committees of the Legislature with an evaluation
of
the port-of-entry projects, including the California Airport
Residency
Review Program, as conducted by the State Department of Health
Services, by April 1, 1999. The evaluation shall, at a minimum,
review
the protocols, procedures, and methods used by the investigators to
identify and determine potential beneficiary fraud in the Medi-Cal
Program, provide a demographic profile of the individuals questioned
as well as those who are investigated, measure the cost-benefit ratio
of
the projects, including a summary of the funds collected and any cost

avoidance assumptions, and analyze the overall effectiveness of the
projects at identifying fraud. 

4260-001-0007--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Breast Cancer
Research Account  . . . 1,594,000

4260-001-0009--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Breast Cancer
Control Account  . . . 6,971,000

4260-001-0029--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Nuclear Planning
Assessment Special Account  . . . 563,000

4260-001-0044--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Motor Vehicle
Account, State Transportation Fund  . . . 473,000

4260-001-0066--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Sale of Tobacco to
Minors Control Account  . . . 2,215,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

4260-001-0070--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Occupational Lead
Poisoning Prevention Account, General Fund  . . . 2,621,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

4260-001-0074--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Medical Waste
Management Fund  . . . 1,138,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

4260-001-0075--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Radiation Control
Fund  . . . 12,854,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

4260-001-0076--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Tissue Bank
License Fund   . . . 164,000

4260-001-0080--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Childhood Lead
Poisoning Prevention Fund  . . . 4,828,000

4260-001-0082--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Export Document
Program Fund  . . . 421,000

4260-001-0098--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Clinical Laboratory
Improvement Fund  . . . 6,067,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

2. Notwithstanding any other provision of law, the Department of
Health Services shall not impose fees on clinical laboratories that
were
not subject to state fees prior to January 1, 1996, until exemption
from
the federal Clinical Laboratory Improvement Amendments (CLIA;
P.L. 100-578) of 1988 is granted. Expenditures for the Clinical
Laboratory Program shall not exceed amounts collected in clinical
laboratory fees plus federal grant funds provided by the Health Care
Financing Administration to support this program. Since the date of
exemption from CLIA is unknown, the Department of Finance may
adjust the amounts  provided for this program by this item and from
federal funds pursuant to the provisions of Sections 27.00 and 28.00
of this act. 

3. The Department of Health Services shall, by January 1, 1999,
provide the Legislature with a status update on the implementation of

the Clinical Laboratory Improvement Act (42 U.S.C. Sec. 263a). This
update shall include data on the program's outcomes and effectiveness

to date, number of filled and vacant positions, level of anticipated
program expenditures, status of the program regulations, and status
as
to obtaining an exemption from the Health Care Financing
Administration. 

4260-001-0099--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Health Statistics
Special Fund  . . . 13,644,000

4260-001-0116--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Wine Safety Fund
. . . 189,000

4260-001-0129--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Water Device
Certification Special Account  . . . 139,000

4260-001-0177--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Food Safety Fund
. . . 2,874,000

4260-001-0179--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Environmental
Laboratory Improvement Fund  . . . 2,407,000

4260-001-0203--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Genetic Disease
Testing Fund  . . . 60,158,000 

Provisions:

1. On or before January 10, 1999, the State Department of Health
Services shall provide the Legislature with an expenditure plan for
the
Genetic Disease Branch that provides a summary of program
expenditures, including proposed policy changes for the upcoming
fiscal year and a status update on the implementation of the business

management information system. 


4260-001-0227--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Low-Level
Radioactive Waste Disposal Fund  . . . 1,859,000

Provisions:

1. Upon the request of the Department of Health Services and the
approval of the Director of Finance, a General Fund loan of up to
$1,000,000 shall be made to the Low-Level Radioactive Waste
Disposal Fund. The loan shall be repaid upon receipt of fees
collected
from the disposal of low-level radioactive waste by generators once
the
Ward Valley site becomes operational. Accrued interest shall also be
repaid in accordance with Section 16314 of the Government Code.

2. Of the amount appropriated by this item, up to $1,136,000 shall be

used to fund an infiltration study.

4260-001-0231--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Health Education
Account, Cigarette and Tobacco Products Surtax Fund  . . .
37,415,000 

Provisions:

1. Media advertising products for the tobacco education campaign
shall be selected through a two step approval process which,
including
production, shall not exceed 120 days. The process shall be initiated

by the advertising contractor's submission of a preliminary concept
to
the State Department of Health Services.

  Final approval or rejection of advertising concepts shall be made
within 10 business days of the submission by the advertising
contractor. The department shall provide any submitted advertising
concepts and related research to members of the Tobacco Education
and Research Committee (TERC) upon request. All unapproved
material available to TERC shall be confidential, restricted to TERC
members only, and shall not be distributed or presented in public
settings until after the department has made a decision regarding the

advertisement and completed production.

  The department shall consider any comment or recommendations of
TERC in determining approval or disapproval of proposed advertising
concepts.

  Final acceptance or rejection of completed advertisements shall be
made within 10 business days of the submission by the advertising
contractor. The department shall provide all final submitted
advertisements to members of TERC upon request and shall consider
the comments and recommendations of TERC in determining
acceptance of completed advertisements.

  Final acceptance or rejection by the department shall be based on
the
demonstrated effectiveness of the proposed or completed
advertisements. For purposes of this section, "demonstrated
effectiveness" means that advertising content, image, or theme which
has been demonstrated by the advertising contractor through market
research and testing to be the most effective at reducing tobacco use

as rapidly as possible among target audiences.

  Nothing shall preclude the department from airing advertisements
that have been approved and that may not be in broadcast rotation.
Any advertisement produced or aired in California shall not require
reapproval by the department to be aired and shall be available for
broadcast, when, in the best professional judgment of the advertising

contractor and the department, the use of those advertisements will
contribute to a decline in tobacco use in California. 

4260-001-0232--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Hospital Services
Account, Cigarette and Tobacco Products Surtax Fund  . . . 925,000

4260-001-0233--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Physician Services
Account, Cigarette and Tobacco Products Surtax Fund  . . . 236,000

4260-001-0234--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Research Account,
Cigarette and Tobacco Products Surtax Fund  . . . 3,738,000

4260-001-0236--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Unallocated
Account, Cigarette and Tobacco Products Surtax Fund  . . . 3,121,000

4260-001-0253--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Domestic Violence
Fund  . . . 565,000

4260-001-0272--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Infant Botulism
Treatment and Prevention Fund  . . . 1,284,000

4260-001-0306--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Safe Drinking
Water Account  . . . 8,146,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified in
Government Code Section 13332.18.

4260-001-0335--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Registered
Environmental Health Specialist Fund  . . . 247,000

4260-001-0478--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Mosquitoborne
Disease Surveillance Account  . . . 29,000

4260-001-0589--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Cancer Research
Fund  . . . 25,000,000

4260-001-0693--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Emergency
Services and Supplemental Payments Fund  . . . 122,000

Provisions:

1. To the extent that moneys available in the Emergency Services and
Supplemental Payments Fund  are less than the amount appropriated
in this item, this appropriation shall be limited to that lesser
amount.

2. Notwithstanding any other provision of law, if revenues to the
Emergency Services and Supplemental Payments Fund are sufficient
to create additional allocation workload, the Director of Finance may

authorize expenditures for the Department of Health Services in
excess of the amount appropriated not sooner than 30 days after
notification in writing of the necessity therefor is provided to the
chairpersons of the fiscal committees and the Chairperson of the
Joint
Legislative Budget Committee, or not sooner than whatever lesser time

the chairperson of the committee, or his or her designee, may in each

instance determine.

3. Funds appropriated by this item and augmentations authorized
pursuant to Provision 2 may be transferred by executive order
approved by the Director of Finance from the Department of Health
Services to the California Medical Assistance Commission if revenues
to the Emergency Services and Supplemental Payments Fund are
sufficient to create allocation workload for that commission.

4260-001-0823--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the California
Alzheimer's and Related Disorders Research Fund  . . . 395,000

4260-001-0834--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Medi-Cal Inpatient
Payment Adjustment Fund  . . . 790,000

4260-001-0890--For support of Department of Health Services, for
payment to Item 4260-001-0001, payable from the Federal Trust Fund
. . .  260,368,000 
 261,236,000 

Provisions:

1. The limitations and conditions applicable to Item 4260-001-0001
also apply to this item if appropriate.

2. Of the funds appropriated in this item, $49,473,000 shall be
available for administration, research, and training projects.
Notwithstanding Section 28.00 of this act, the State Department of
Health Services shall report under that section any  new project over

$200,000 or any increase or decrease in excess of $400,000 for an
identified project.

4260-001-0900--For support of Department of Health Services, in lieu
of the amounts that otherwise would be appropriated in the Local
Health Capital Expenditure Account of the County Health Services
Fund pursuant to Chapter 1351, Statutes of 1980, for payment to Item
4260-001-0001, payable from the Local Health Capital Expenditure
Account, County Health Services Fund  . . . 17,000

4260-002-0001--For transfer to the Cancer Research Fund  . . .
25,000,000

4260-002-0942--For support of Department of Health Services,
payable from the Health Facilities Citation Penalties Account,
Special
Deposit Fund  . . . 1,000,000

4260-003-0942--For support of Department of Health Services,
payable from the Federal Citation Penalties Account, Special Deposit
Fund  . . . 203,000

4260-007-0890--For support of Department of Health Services,
payable from the Federal Trust Fund  . . . 18,795,000

Provisions:

1. Notwithstanding Section 28.00 of this act, adjustments may be
made to align the federal funds for legislative actions and other
technical adjustments  affecting the recipient department's
appropriation authority.

4260-101-0001--For local assistance, Department of Health Services,
Medical Assistance Program, payable from the Health Care Deposit
Fund (912) after transfer from the General Fund  . . . 
6,858,124,000 
 6,876,805,000 

Schedule:

(a) 20.10.030-Benefits (Medical Care and Services)  . . . 
15,873,922,000 
 15,954,495,000 

(b) 20.10.010-Eligibility (County Administration)  . . . 
828,159,000 
 878,700,000 

(c) 20.10.020-Fiscal Intermediary Management  . . . 178,671,000

(d) Prior Fiscal Year Reconciliation  . . . 0

(e) Amount payable from the Federal Trust Fund (Item 4260-1010890)
. . .   -10,012,918,000 
 -10,125,351,000 

(f) Amount payable from Federal Trust Fund (Item 4260-103-0890)
. . . -9,710,000

Provisions:

  1. The aggregate principal amount of disproportionate share
hospital
general obligation debt that may be issued in the 1998-99 fiscal year

pursuant to subparagraph (A) of paragraph (2) of subdivision (f) of
Section 14085.5 of the Welfare and Institutions Code shall be $0.

2. Notwithstanding any other provision of law, both the federal and
nonfederal shares of any money recovered for previously paid health
care services, provided pursuant to Chapter 7 (commencing with
Section 14000) of Part 3 of Division 9 of the Welfare and
Institutions
Code, are hereby appropriated and shall be expended as soon as
practicable for medical care and services as defined in the Welfare
and
Institutions Code.

3. Notwithstanding any other provision of law, accounts receivable
for
recoveries as described in Provision 2 above shall have no effect
upon
the positive balance of the General Fund or the Health Care Deposit
Fund. Notwithstanding any other provision of law, money recovered
as described in this item that is required to be transferred from the

Health Care Deposit Fund to the General Fund shall be credited by the

Controller to the General Fund without regard to the appropriation
from which it was drawn.

4. Without regard to fiscal year, the General Fund shall make one or

more loans available not to exceed a cumulative total of $45,000,000
to be transferred as needed to the Health Care Deposit Fund to meet
cash needs. The loans are subject to the repayment provisions of
Section 16351 of the Government Code. Any additional loan
requirement in excess of $45,000,000 shall be processed in the manner

prescribed by Section 16351 of the Government Code.

5. Notwithstanding any other provision of law, the Director of
Health
Services may give public notice relative to proposing or amending any

rule or regulation that could result in increased costs in the
Medi-Cal
program only after approval by the Department of Finance as to the
availability of funds; and any rule or regulation adopted by the
Director
of Health Services and any communication that revises the Medi-Cal
program shall be effective only from and after the date upon which it

is approved as to availability of funds by the Department of Finance.


6. Of the funds appropriated by this item, up to $50,000 may be
allocated for attorneys' fees awarded pursuant to state or federal
law
without prior notification to the Legislature. Individual settlements

authorized under this language shall not exceed $5,000. The
semiannual estimates of Medi-Cal expenditures due to the Legislature
in January and May shall reflect attorney fees paid 15 or more days
prior to the transmittal of the estimate.

7. Change orders to the medical or the dental fiscal intermediary
contract for amounts exceeding a total cost of $250,000 shall be
approved by the Director of Finance not sooner than 30 days after
written notification of the change order is provided to the
chairpersons
of the fiscal and policy committees in each house and to the
Chairperson of the Joint Legislative Budget Committee or not sooner
than such lesser time as the Chairperson of the Joint Legislative
Budget Committee, or his or her designee, may designate. If there are

changes or potential changes in federal funding, the Department of
Finance shall provide timely written notification of the changes to
the
chairperson of the fiscal committee in each house and the Chairperson

of the Joint Legislative Budget Committee. The semiannual estimates
of Medi-Cal expenditures due to the Legislature in January and May
may constitute the notification required by this provision.

8. Recoveries of advances made to counties in prior years pursuant
to
Section 14153 of the Welfare and Institutions Code are reappropriated

to the Health Care Deposit Fund for reimbursement of those counties
where allowable costs exceeded the amounts advanced. Recoveries in
excess of the amounts required to fully reimburse allowable costs
shall
be transferred to the General Fund. When a projected deficiency
exists
in the Medical Assistance Program, these funds, subject to
notification
to the Chairperson of the Joint Legislative Budget Committee, are
appropriated and shall be expended as soon as practicable for the
state's share of payments for medical care and services, county
administration, and fiscal intermediary services.

9. The Department of Finance may transfer funds representing all or
any portion of any estimated savings that are a result of
improvements
in the Medi-Cal claims processing procedures from the Medi-Cal
services budget or the support budget of the State Department of
Health Services (Item 4260-001-0001) to the fiscal intermediary
budget item for purposes of making improvements to the Medi-Cal
claims system.

10. Upon order of the Director of Finance, the Controller shall
transfer
such funds as are necessary between this item and Item
4300-101-0001 for the state's share of expenditures for developmental

services provided to persons eligible for Medi-Cal.

11. Notwithstanding subdivision (a) of Section 2.00 and Section 26.00

of this act, the Department of Finance may authorize transfer of
expenditure authority between Schedule (a), (b), or (c) and Schedule
(d). Schedule (d) may be used for the liquidation of prior years'
excess
obligations of Item 4260-101-0001.

  The Director of Finance shall notify the Legislature within ten
days
of authorizing such a transfer unless prior notification of the
transfer
has been included in the Medi-Cal estimates submitted pursuant to
Section 14100.5 of the Welfare and Institutions Code.

12. The Department of Finance may transfer funds from this item to
Item 4260-001-0001 from funds appropriated for the implementation
of Medi-Cal outreach and simplification activities.

13. The State Department of Health Services shall continue the
following policies and actions pertaining to antipsychotic drugs,
prior
authorization, and the Medi-Cal List of Contract Drugs:

(a) Postpone the therapeutic category review of antipsychotics until
the
department has determined that there is sufficient therapeutic
information comparing the atypical antipsychotics to each other.
During the therapeutic category review, the department shall seek
input from provider organizations and sources in the mental health
community and the Department of Mental Health.

(b) Conduct an "individual drug petition" review of each new
antipsychotic drug approved by the federal Food and Drug
Administration (FDA). The department shall seek input from provider
organizations and sources in the mental health community and the
Department of Mental Health during this process.

  If information regarding therapeutic equivalency becomes available
during these reviews, the department shall include it in the
evaluation
process. Information from studies not published may be acceptable
and the department shall keep that information confidential.

(c) Continue its prior authorization policy regarding atypical
antipsychotics and affirming their use as first line agents
consistent
with guidelines published in the currentExpert Consensus Guideline
Series, Treatment of Schizophrenia.

(d) Offer assistance to providers who are having difficulty obtaining

prior authorization approval for the atypical antipsychotic drugs.
The
department shall refer telephone calls and letters to the field
office
administrators for action.

14. The State Department of Health Services shall convene as
necessary a work group that consists of industry representatives,
individual providers, advocates interested in long-term health care
concerns, recipient constituency groups, and other interested parties
as
deemed appropriate by the department, to discuss and develop
alterna  tives to the current ratesetting process. 
 tives to
the current long-term care rate-setting process. 

15. The State Department of Health Services shall provide the fiscal
and policy committees of the Legislature with a status update,
including po  tential alternatives to the current ratesetting
pro- 
 tential alternatives to the current long-term care rate-setting
pro
 cess, on or before January 15, 1999.

 16. The State Department of Health Services shall not
collect any
liability that the Children's Hospital of San Diego may have at issue
in
Audit Appeal No. JA5-0689-759, in exchange for the hospital's
agreement to construct a new distinct part convalescent hospital
dedicated to children.

  16. The State Department of Health Services may
negotiate
settlements with acute care hospitals with a distinct part pediatric
convalescent facility that violate Medi-Cal Cost reimbursement
policies or procedures governing the operation of acute care
hospitals.
The department may waive all of part of any overpayment made that
would otherwise be reimbursable to the department by an acute care
hospital. This provision shall only apply to hospitals in San Diego
County. 

17. Of the funds appropriated by this item, up to $25,000,000 in Item

4260-101-0001 and $25,000,000 in Item 4260-101-0890 may be
allocated for a central valley burn and trauma center located in
Fresno.
Availability of this funding is contingent upon enactment of enabling

legislation.

18. Of the funds appropriated by this item, $1,000,000 shall solely
be
used for an evaluation of the Family PACT program.

19. The State Department of Health Services shall, on or before
September 30, 1998, submit to the Secretary of Health and Human
Services an amendment to the State Medicaid Plan to extend coverage
of personal care services to Medi-Cal "medically needy" individuals.

The State Department of Health Services and the State Department of
Social Services shall develop as expeditiously as possible the
administrative procedures that will allow "income eligibles" in the
In-Home Supportive Services (IHSS) program, who are not otherwise
excluded under Title XIX of the Social Security Act, to receive
services under the IHSS Personal Care Services Program.

 20. The State Department of Health Services and the Managed
Risk Medical Insurance Board shall provide the fiscal and policy
committees of each house of the Legislature with a quarterly status
update on the effectiveness of the joint Medi-Cal program and Healthy

Families program education and outreach campaign. This status
update shall include, at a minimum, the number of children enrolled,
the outcomes from the community-based training and certification
process, the amount of application assistance fees paid and pending,
general effectiveness of the media campaign, and the overall status
of
performance measures as contained in the outreach and education
contracts.

21. The State Department of Health Services shall biannually provide
status updates to the fiscal and appropriate policy committees in
each
house of the Legislature regarding the implementation throughout the
state, of Medi-Cal Managed Care, both the Two-Plan Model and
Geographic Managed Care. The biannual status updates shall include,
at a minimum, implementation dates for the plans, the number of
beneficiaries enrolled, key concerns, if any, and strategies or
actions
taken by the department to mitigate the identified concerns.

22. The State Department of Health Services shall continue to
convene, as needed, constituency work groups, consisting of diverse
provider groups, advocacy organizations, and program recipients, to
address issues regarding beneficiary education, choice, enrollment,
disenrollment, and other items pertaining to Medi-Cal Managed Care
implementation and the ongoing provision of services.

23. Upon approval of the Director of Finance, the appropriation made
by this item may be augmented by up to $2,500,000 for transfer to
Item 4300-101-0001, subject to the enactment of legislation and
adoption of regulations by the State Department of Developmental
Services establishing a new rate structure for day programs and
in-home respite agencies. The new rate structure shall include
performance outcome measures. 

4260-101-0693--Notwithstanding any other provision of law, moneys
available in the Emergency Services and Supplemental Payments
Fund, after the appropriation made by Item 4260-001-0693 of this act,

are appropriated to the Department of Health Services for expenditure

for local assistance for the purposes specified in Section 14085.6 of

the Welfare and Institutions Code.

4260-101-0890--For local assistance, Department of Health Services,
for payment to Item 4260-101-0001, payable from the Federal Trust
Fund  . . .  10,012,918,000 
 10,125,351,000 

Provisions:

1. Any of the provisions in Item 4260-101-0001 that are relevant to
this item also apply to this item.

 2. Upon approval by the Director of Finance, the appropriation
made by this item may be augmented by up to $2,800,000 and
appropriated for transfer to Item 4300-101-0001, subject to the
enactment of legislation and adoption of regulations by the State
Department of Developmental Services establishing a new rate
structure for day programs and in-home respite agencies. The new rate

structure shall include performance outcome measurements. 

4260-102-0001--For local assistance, Department of Health Services,
Program 20.10.030-Benefits (Medical Care and Services), for
supplemental reimbursement for debt service pursuant to Section
14085.5 of the Welfare and Institutions Code  . . . 60,208,000

4260-102-0890--For local assistance, Department of Health Services,
Program 20.10.030--Benefits (Medical Care and Services), payable
from Federal Trust Fund, for supplemental reimbursement for debt
service pursuant to Section 14085.5 of the Welfare and Institutions
Code  . . . 63,856,000

4260-103-0890--For local assistance, for refugee services, Department

of Health Services, for payment to Item 4260-101-0001, payable from
the Federal Trust Fund  . . . 9,710,000

Provisions:

1. Any of the provisions in Item 4260-101-0001 that are relevant to
this item also apply to this item.

4260-111-0001--For local assistance, Department of Health Services
. . .  389,577,000 
 386,527,000 

Schedule:

(a) 10.10.010-Vital Records Improvement Project  . . . 300,000

 (aa) 10.20.010-Environmental Management  . . . 410,000 

(b) 10.30.030-Childhood Lead Poisoning Prevention  . . . 11,000,000

(c) 10.30.040-Chronic Diseases  . . .  194,426,000 
 195,426,000 

(d) 10.30.050-Communicable Disease Control  . . .  68,965,000


 68,005,000 

(e) 10.30.060-AIDS  . . .  204,748,000 
 205,548,000 

(f) 20.30-County Health Services  . . .  207,732,000

 210,432,000 

(g) 20.40-Primary Care and Family Health  . . . 
1,376,221,000

 1,369,471,000 

(h) Reimbursements-Family Health Services, CCS Enrollment Fees,
and GHPP Repayments  . . . -372,000

(i) Reimbursements-Primary Care and Family Health, WIC Rebates
and Recoveries  . . . -250,001,000

(j) Reimbursements-Public Health Service AIDS  . . . -11,429,000

(k) Reimbursements--Chronic Diseases  . . . -7,342,000

(

) Amount payable from the Breast Cancer Control Account (Item
4260-111-0009)  . . . -18,885,000

(m) Amount payable from the Childhood Lead Poisoning Prevention
Fund (Item 4260-111-0080)  . . . -14,600,000

(n) Amount payable from the Health Statistics Special Fund (Item
4260-111-0099)  . . . -300,000

(o) Amount payable from the Health Education Account, Cigarette and
Tobacco Products Surtax Fund (Item 4260-111-0231)  . . . -64,304,000

(p) Amount payable from the Hospital Services Account, Cigarette and
Tobacco Products Surtax Fund (Item 4260-111-0232)  . . .
-130,036,000

(q) Amount payable from the Physician Services Account, Cigarette
and Tobacco Products Surtax Fund (Item 4260-111-0233)  . . .
-20,633,000

(r) Amount payable from the Unallocated Account, Cigarette and
Tobacco Products Surtax Fund (Item 4260-111-0236)  . . .
-102,687,000

(s) Amount payable from the Child Health and Safety Fund (Item

4260-111-0279)  . . . -491,000

(t) Amount payable from the Federal Trust Fund (Item 4260-1110890)
. . .  -1,052,735,000 
 -1,052,985,000 

Provisions:

1. Program 10.30.040--Chronic Diseases:

Of the total amount of reimbursements in this item, $7,342,000 shall
be available for administration, research and training projects.
Notwithstanding Section 28.00 of this act, the Department of Health
Services shall report under that section, any new project over
$200,000
or any increase or decrease in excess of $400,000 for an identified
project.

2. Program 10.30.060-AIDS:

The Office of AIDS in the State Department of Health Services, in
allocating and processing contracts and grants, shall comply with the

same requirements that are established for contracts and grants for
other public health programs. The contracts or grants administered by

the Office of AIDS shall be exempt from the Public Contract Code and
shall be exempt from approval by the Department of Finance and the
Department of General Services prior to their execution.

3. Program 20.40-Primary Care and Family Health:

(a) Notwithstanding Section 28.00 of this act, the Department of
Finance, upon request of the State Department of Health Services, may

authorize and approve a budget revision to augment Schedule (i)
Primary Care and Family Health, WIC Rebates and Recoveries, in this
item for any additional rebate moneys or recoveries that become
available for the Special Supplemental Food Program for Women,
Infants, and Children (WIC) during this fiscal year.

(b) Counties may retain 50 percent of total enrollment and assessment

fees that are collected by the counties for the CCS program. Fifty
percent of the enrollment and assessment fee for each county shall be

offset from the state's match for that county.

(c) Notwithstanding any other provision of law, of the funds
appropriated in Schedule (g) of this item, up to $500,000 for the
Community Challenge Grant Program is available for expenditure until
December 31, 1999, for the Statewide Program Evaluation.

4. Nonfederal funds appropriated by this item and Item 4260-001-0001
which have been budgeted to meet the state's Temporary Assistance
for Needy Families maintenance-of-effort requirement established
pursuant to the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (P.L. 104-193) may not be expended in
any way that would cause their disqualification as a federally
allowable
maintenance-of-effort expenditure.

5. Of the amount appropriated in this item, $500,000 shall be used to

address special areas of concern in the treatment and provision of
care
for individuals with Alzheimer's disease, including models of care
for
rural areas, partnerships with medical schools for additional
training
in the field of  dementia, and development of treatment strategies
that
provide culturally appropriate care.

6. Of the amount appropriated by this item, $15,137,000 shall be
transferred to the Safe Drinking Water State Revolving Fund to
provide a 20 percent match of federal funds available for loans and
grants to public water systems for infrastructure improvements. If a
general obligation bond act is approved and becomes operative during
the 1998-99 fiscal year and provides funds for the Safe Drinking
Water State Revolving Fund, the Director of Finance shall direct the
Controller to transfer funds from the revolving fund to the General
Fund in an amount sufficient to fully reimburse the General Fund for
the transfer made from the General Fund to the revolving fund to the
extent the bond act provides funds for the revolving fund and
authorizes that reimbursement.

7. Of the funds appropriated in this item, $1,000,000 shall be used
for
breast cancer treatment pursuant to legislation enacted during the
1997-98 Regular Session. 

4260-111-0009--For local assistance, Department of Health Services,
for payment to Item 4260-111-0001, payable from the Breast Cancer
Control  Account  . . . 18,885,000

4260-111-0080--For local assistance, Department of Health Services,
for payment to Item 4260-111-0001, payable from the Childhood Lead
Poisoning Prevention Fund  . . . 14,600,000

4260-111-0099--For local assistance, Department of Health Services,
for payment to Item 4260-111-0001, payable from the Health Statistics

Special Fund  . . . 300,000

4260-111-0231--For local assistance, Department of Health Services,
for payment to Item 4260-111-0001, payable from the Health
Education Account, Cigarette and Tobacco Products Surtax Fund   .
. . 64,304,000

4260-111-0232--For local assistance, Department of Health Services,
for payment to Item 4260-111-0001, payable from the Hospital
Services Account, Cigarette and Tobacco Products Surtax Fund   . . .

130,036,000

4260-111-0233--For local assistance, Department of Health Services,
for payment to Item 4260-111-0001, payable from the Physician
Services Account, Cigarette and Tobacco Products Surtax Fund   . . .

20,633,000

4260-111-0236--For local assistance, Department of Health Services,
for payment to Item 4260-111-0001, payable from the Unallocated
Account, Cigarette and Tobacco Products Surtax Fund   . . .
102,687,000

4260-111-0279--For local assistance, Department of Health Services,
for payment to Item 4260-111-0001, payable from the Child Health
and Safety Fund  . . . 491,000

4260-111-0890--For local assistance, Department of Health Services,
for payment to Item 4260-111-0001, payable from the Federal Trust
Fund  . . .  1,052,735,000 
 1,052,985,000 

Provisions:

1. Of the funds appropriated by this item, $55,990,000 shall be
available for administration, research, and training projects.
Notwithstanding the provisions of Section 28.00 of this act, the
State
Department of Health Services shall report under that section any new

project over $200,000 or any increase or decrease in excess of
$400,000 for an identified project.

4260-112-0001--For local assistance, Department of Health Services,
for implementation of Chapter 623 of the Statutes of 1997, Healthy
Families Program (Public Health)  . . . 6,415,000

Schedule:

(a) 20.40--Primary Care and Family Health  . . . 21,788,000

(b) Amount payable from the Federal Trust Fund (Item 4260-1120890)
. . . -15,373,000

4260-112-0890--For local assistance, Department of Health Services,
for payment to Item 4260-112-0001, payable from the Federal Trust
Fund  . . . 15,373,000

4260-113-0001--For local assistance, Department of Health Services,
for the implementation of Chapter 623 of the Statutes of 1997,
Healthy
Families Program (Medi-Cal)  . . . 3,850,000

Schedule:

(a) 20.10.010-Eligibility (County Administration)  . . . 7,200,000

(b) 20.10.020-Fiscal Intermediary Management  . . . 1,027,000

(c) 20.10.030-Benefits (Medical Care and Services)  . . . 14,966,000

(d) Amount payable from the Federal Trust Fund (Item 4260-1130890)
. . . -19,343,000

4260-113-0890--For local assistance, Department of Health Services,
for payment to Item 4260-113-0001, payable from the Federal Trust
Fund  . . . 19,343,000

4260-114-0942--For local assistance, Department of Health Services,
payable from the Women, Infants, and Children Vendor Fines and
Penalties Account, Special Deposit Fund  . . . 100,000

4260-295-0001--For local assistance, Department of Health Services,
for reimbursement, in accordance with the provisions of Section 6 of
Article XIII B of the California Constitution or of Section 17561 of
the Government Code, of the costs of any new program or increased
level of service of an existing program mandated by statute or
executive order, State Controller  . . . 6,898,000

Schedule:

(1) 98.01.026.891-SIDS Contacts by Local Health Officers (Ch. 268,
Stats. 1991)  . . . 317,000

(2) 98.01.045.374-SIDS Notices (Ch. 453, Stats. 1974)  . . . 34,000

(3) 98.01.091.692-Pacific Beach Safety (Ch. 916, Stats. 1992)  . . .

69,000

(4) 98.01.095.589-SIDS Autopsies (Ch. 955, Stats. 1989)  . . .
1,825,000

(5) 98.01.108.888-AIDS Search Warrants (Ch. 1088, Stats. 1988)  .
. . 878,000

(6) 98.01.116.381-Medi-Cal Beneficiary Death Notices (Ch. 102,
Stats. 1981 and Ch. 1163, Stats. 1981)  . . . 98,000

(7) 98.01.159.788-Inmates AIDS Testing (Ch. 1597, Stats. 1988)  . .
. 1,212,000

(8) 98.01.160.390-Perinatal services for alcohol/drug exposed infants

(Ch. 1603, Stats. 1990)  . . . 2,465,000

Provisions:

1. Except as provided in Provision 2, allocations of funds
appropriated
by this item to the appropriate local entities shall be made by the
State
Controller in accordance with the provisions of each statute or
executive order that mandates the reimbursement of the costs, and
shall be audited to verify the actual amount of the mandated costs in

accordance with subdivision (d) of Section 17561 of the Government
Code. Audit adjustments to prior year claims may be paid from this
item. Funds appropriated by this item may be used to provide
reimbursement pursuant to Article 5 (commencing with Section
17615) of Chapter 4 of Part 7 of Division 4 of Title 2 of the
Government Code.

2. If any of the scheduled amounts are insufficient to provide full
reimbursement of costs, the Controller may, upon notifying the
Director of Finance in writing, augment those deficient amounts from
the unencumbered balance of any other scheduled amounts therein. No
order may be issued pursuant to this provision unless written
notification of the necessity therefor is provided to the chairperson
of
the committee in each house that considers appropriations and the
Chairperson of the Joint Legislative Budget Committee or his or her
designee.

4260-301-0660--For capital outlay, Department of Health Services 

,   payable from Public Buildings Construction Fund  . . .
108,416,000

Schedule:

(1) 94.60.040-Phase II Replacement Laboratory Facilities,
Richmond-Construction  . . . 108,416,000

Provisions:

1. The State Public Works Board may issue lease-revenue bonds, notes
or bond anticipation notes pursuant to Chapter 5 (commencing with
Section 15830) of Part 10b of Division 3 of Title 2 of the Government

Code to finance the construction of the project authorized by this
item.

2. The State Public Works Board and the Department of Health
Services may obtain interim financing for the project costs
authorized
in this item from any appropriate source including but not limited to

the Pooled Money Investment Account pursuant to Sections 16312 and
16313 of the Government Code.

3. The maximum amount of bonds, notes or bond anticipation notes
to be sold shall not exceed the cost of construction and any
additional
amounts necessary to pay interim and permanent financing costs.

4260-401--In the event the bonds authorized for replacement
laboratory facilities in the City of Richmond, as authorized by
Section
100500 of the Health and Safety Code, are not sold, the Department
of Health Services shall commit, from the amount appropriated to the
department by this act for its support, a sufficient amount to repay
interim financing loans incurred for that facilities purpose. It is
the
intent of the Legislature that this commitment requirement be
included
in future Budget Acts until outstanding loans for interim financing
are
repaid either through the sale of bonds or from an appropriation.

4260-402--In the event the bonds authorized for the Capital Area Plan

project in Chapter 761, Statutes 1997 are not sold, the Department of

Health Services shall commit a sufficient portion of its support
appropriation, as determined by the Department of Finance, which is
provided for in this Budget Act to repay any interim financing. It is
the
intent of the Legislature that this commitment shall be included in
future Budget Acts until all interim financing is repaid either
through
the proceeds from the sale of bonds or from an appropriation.

4270-001-0001--For support, California Medical Assistance
Commission  . . . 1,189,000

Schedule:

(a) 10-California Medical Assistance Commission  . . . 2,378,000

(b) Reimbursements  . . . -1,189,000

4280-001-0001--For support of Managed Risk Medical Insurance
Board, for the implementation of Chapter 623, Statutes of 1997,
Healthy Families Program  . . . 858,000

4280-001-0309--For support of Managed Risk Medical Insurance
Board, for payment to Item 4280-001-0313, payable from the Perinatal
Insurance Fund  . . . 741,000

Provisions:

1. Provision 1 of Item 4280-001-0313 also applies to this item.

4280-001-0313--For support of Managed Risk Medical Insurance
Board, payable from the Major Risk Medical Insurance Fund  . . .
720,000

Schedule:

(a) 10-Major Risk Medical Insurance Program  . . . 720,000

(b) 20-Access for Infants and Mothers Program  . . . 741,000

(c) 30-Health Insurance Plan of California   . . . 340,000

(d) Amount payable from the Perinatal Insurance Fund, (Item
4280-001-0309)  . . . -741,000

(e) Amount payable from the Voluntary Alliance Uniting Employers
Fund (Item 4280-001-0957)  . . . -340,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance
may authorize expenditures for the Managed Risk Medical Insurance
Board in excess of the amount appropriated not sooner than 30 days
after notification in writing of the necessity therefor is provided
to the
chairpersons of the fiscal committees and the Chairperson of the
Joint
Legislative Budget Committee, or not sooner than whatever lesser time

the chairperson of the committee, or his or her designee, may in each

instance determine.

4280-001-0890--For support of Managed Risk Medical Insurance
Board, for the implementation of Chapter 623, Statutes of 1997,
Healthy Families Program  . . . 1,667,000

4280-001-0957--For support of Managed Risk Medical Insurance
Board, for payment to Item 4280-001-0313, payable from the
Voluntary Alliance Uniting Employers Fund  . . . 340,000

Provisions:

1. Provision 1 of Item 4280-001-0313 also applies to this item.

4280-101-0001--For local assistance, Managed Risk Medical
Insurance Board, for the implementation of Chapter 623, Statutes of
1997, Healthy Families Program  . . . 38,597,000

Provisions:

 1. The Managed Risk Medical Insurance Board shall provide the
fiscal and policy committees of the Legislature with a quarterly
status
update on the effectiveness of the joint Medi-Cal Program and Healthy

Families Program education and outreach campaign. This status
update shall include, at a minimum, the number of children enrolled,
the outcomes from the community-based training and certification
process, the amount of application assistance fees paid and pending,
general effectiveness of the media campaign, and the overall status
of
performance measures as contained in the outreach and education
contracts. 

 1.  

2.   The Managed Risk Medical Insurance Board shall report to
the fiscal and policy committees of the Legislature, on a quarterly
basis, the number of enrollments, disenrollments, and terminations,
and reasons for terminations, in the Healthy Families Program. This
data shall be reported in such a manner as to facilitate comparison
by
county or health care service area, and by plan. 

3. The Managed Risk Medical Insurance Board shall convene, at least
on a quarterly basis, a work group consisting of representatives from

participating health plans, mental health providers and advocates,
the
State Department of Mental Health, and other interested parties as
deemed appropriate by the Managed Risk Medical Insurance Board,
to discuss the memorandum of understanding and related issues
regarding the provision of mental health services in the Healthy
Families Program.

4.  The Managed Risk Medical Insurance Board shall convene, at least
on a quarterly basis, a work group consisting of representatives from

participating health plans, county California Children's Services
(CCS)
programs, CCS providers, advocates, the State Department of Health
Services, and other interested parties as deemed appropriate by the
Managed Risk Medical Insurance Board, to discuss the memorandum
of understanding and related issues regarding the Healthy Families
Program and interactions with the California Children's Services
Program.

5. It is the Legislature's intent for the State Department of Health
Services to engage interested parties in providing comments and
recommendations to the department on the crafting of the request for
proposal to conduct the Rural Health Demonstration Projects prior to
the final release of the request for proposal. 

4280-101-0890--For local assistance, Managed Risk Medical
Insurance Board, for the implementation of Chapter 623, Statutes of
1997, Healthy Families Program  . . . 75,026,000

4280-102-0001--For local assistance, Managed Risk Medical
Insurance Board, for the implementation of Chapter 623 of the
Statutes of 1997, Healthy Families Program  . . . 0

Provisions:

1. Notwithstanding any other provision of law, the Department of
Finance may augment this item, up to a total of $10,000,000, upon
notification in writing of the necessity therefor to the chairperson
of
the committee in each house that considers appropriations and the
Chairperson of the Joint Legislative Budget Committee.

2. As determined by the Department of Finance, with prior
notification
to the Legislature pursuant to Provision 1, the funds appropriated in

this item may be used only for Healthy Families Program costs.

3. The funds appropriated in this item may be expended only after
approval by the Department of Finance and prior notification to the
Legislature pursuant to Provision 1. Notwithstanding any other
provision of law, the Department of Finance may allocate funds from
this item to General Fund items that appropriate funds used to match
federal funds for the Healthy Families Program either for support of
any state department or board or for local assistance.

4. To the extent that federal funds later become available for
activities
funded from this item, the federal funds shall be claimed and the
General Fund reimbursed.

4280-111-0232--For transfer by the State Controller to the Perinatal
Insurance Fund from the Hospital Services Account, Cigarette and
Tobacco Products Surtax Fund, for the implementation of Part 6.3
(commencing with Section 12695) of Division 2 of the Insurance Code
. . . (17,349,000)

4280-111-0233--For transfer by the State Controller to the Perinatal
Insurance Fund from the Physician Services Account, Cigarette and
Tobacco Products Surtax Fund, for the implementation of Part 6.3
(commencing with Section 12695) of Division 2 of the Insurance Code
. . . (12,071,000)

4280-111-0236--For transfer by the State Controller to the Perinatal
Insurance Fund from the Unallocated Account, Cigarette and Tobacco
Products Surtax Fund, for the implementation of Part 6.3
(commencing with Section 12695) of Division 2 of the Insurance Code
. . . (2,938,000)

4280-112-0233--For transfer by the State Controller to the Major Risk

Medical Insurance Fund from the Physician Services Account,
Cigarette and Tobacco Products Surtax Fund, for the implementation
of Part 6.5 (commencing with Section 12700) of Division 2 of the
Insurance Code  . . . (4,033,000)

4280-112-0236--For transfer by the State Controller to the Major Risk

Medical Insurance Fund from the Unallocated Account, Cigarette and
Tobacco Products Surtax Fund, for the implementation of Part 6.5
(commencing with Section 12700) of Division 2 of the Insurance Code
. . . (5,967,000)

4300-001-0001--For support of Department of Developmental
Services  . . .  25,361,000 
 25,232,000 

Schedule:

(a) 10-Community Services Program  . . .  21,350,000

 21,221,000 

(b) 20-Developmental Centers Program   . . . 7,426,000

(c) 35.01-Administration  . . .  20,955,000 
 21,084,000 

(d) 35.02-Distributed Administration  . . .  -19,718,000

 -19,847,000 

(e) Reimbursements  . . . -2,661,000

(f) Amount payable from the Developmental Disabilities Program
Development Fund (Item 4300-001-0172)  . . . -233,000

(g) Amount payable from the Federal Trust Fund (Item
4300-001-0890)  . . . -1,758,000

Provisions:

1. The State Department of Developmental Services shall present the
results of technical assistance audits and management reviews,
conducted to evaluate the quality and timeliness of reporting fiscal
and
policy information at developmental centers, at public meetings held
on campus at the developmental centers.

2. The State Department of Developmental Services shall, on or before

January 1, 1999, provide the Legislature with a comprehensive plan
for providing housing and treatment services to individuals with
developmental disabilities who are eligible for services under the

Lanterman-Petris-Short    Lanterman Developmental
Disabilities Services   Act  (Pt. 1 (commencing with
Sec.
5000), Div. 5,    (Div. 4.5 (commencing with Sec. 4500),

 W.&I.C.) and who have had a confrontation with, or been
arrested by, law enforcement officials, or who have intensive
behavioral treatment needs. This plan shall include options regarding

the viability of providing additional beds at Porterville and
Lanterman
Developmental Centers, as well as beds at Agnews Developmental
Center. 

3. The State Department of Developmental Services shall provide the
fiscal and policy committees of the Legislature with the findings of
the
Regional Center Core Staffing Study by no later than March 1, 1999.
This study is to address the type of classification, number,
qualifications, and compensation required for Regional Centers to
meet their state and federal mandates, and to be consistent with good

professional and business practices.

4. The State Department of Developmental Services shall conduct an
analysis of the Regional Center's purchase of services expenditures
and the factors that contribute to variances across the statewide
Regional Center service system. The findings of this analysis shall
be
provided to the fiscal and policy committees of the Legislature by no

later than March 1, 1999.

5. The State Department of Developmental Services shall provide the
fiscal and policy committees of the Legislature with two status
updates
on the progress of the master planning process pertaining to the full

assessment of the Developmental Centers by September 30, 1998, and
by January 10, 1999. 

4300-001-0172--For support of Department of Developmental
Services, for payment to Item 4300-001-0001, payable from the
Developmental Disabilities Program Development Fund  . . . 233,000

4300-001-0890--For support of Department of Developmental
Services, for payment to Item 4300-001-0001, payable from the
Federal Trust Fund  . . . 1,758,000

Provisions:

1. Upon order of the Director of Finance, the State Controller shall
transfer such funds as are necessary between this item and Item
4300-101-0890 in order to effectively administer the Early
Intervention
Program (Part  H    C   of the Individuals
with
Disabilities Education Act).

4300-003-0001--For support of Department of Developmental
Services, for Developmental Centers  . . . 19,049,000

Schedule:

(a) 20-Developmental Centers Program  . . . 464,646,000

(b) Reimbursements  . . . -444,293,000

(c) Amount payable from the California State Lottery Education Fund
(Item 4300-003-0814)  . . . -517,000

(d) Amount payable from the Federal Trust Fund (Item 4300-0030890)
. . . -787,000

Provisions:

1. The General Fund shall make a loan available to the State
Department of Developmental Services not to exceed a cumulative
total of $130,000,000. The loan funds will be transferred to this
item
as needed to meet cash-flow needs due to delays in collecting
reimbursements from the Health Care Deposit Fund, and subject to the
repayment provisions of Section 16351 of the Government Code.

2. Of the amount appropriated in Schedule (a), $903,400 is provided
for payment of energy service contracts as required in connection
with
issuance of Public Works Board Energy Efficiency Revenue Bonds
(State Pool Program), Series 1986 A.

3. To the extent that the State Department of Developmental Services
is eligible to receive additional Title XIX Medi-Cal reimbursements
as
a result of population increases in the developmental centers, the
department is authorized to expend those reimbursements for the care
of the additional clients upon approval of the Director of Finance.

4. Upon order of the Director of Finance, the Controller shall
transfer
such funds as are necessary between this item and Items
4300-101-0001 and 4440-011-0001. Within 10 working days after
approval of a transfer as authorized by this provision, the
Department
of Finance shall notify the chairperson of the fiscal committee of
each
house of the Legislature of the transfer, including the amount
transferred, how the amount was determined, and how the amount will
be utilized.

5. The State Department of Developmental Services (DDS) shall
notify the chairperson of the fiscal committee of each house of the
Legislature, the Senate Special Committee on Developmental
Disabilities and Mental Health, and the Senate Health and Human
Services Committee of specific outcomes resulting from citations and
the results of annual surveys conducted by the State Department of
Health Services as well as findings of any other government agency
authorized to conduct investigations or surveys of state
developmental
centers. DDS shall forward the notifications, including a copy of the

specific findings, to the chairpersons of the respective committees
within 10 working days of its receipt of these findings. DDS also
shall
forward these findings, within three working days of submission, to
          the appropriate investigating agency. In addition, DDS
shall provide
notification to the above-mentioned committee chairs, within three
working days, of its receipt of information concerning any
investigation initiated by the United States Department of Justice
and
the private nonprofit corporation designated by the Governor pursuant

to Division 4.7 (commencing with Section 4900) of the Welfare and
Institutions Code or concerning any findings or recommendations
resulting from any of these investigations.

6. The State Department of Developmental Services shall provide the
Legislature with an implementation plan for increasing level-of-care
staff at the Developmental Centers by August 1, 1998. At a minimum,
this plan shall specify how the positions are allocated across
Developmental Centers, what training programs are planned, and what
methods of recruitment and retention are being contemplated.

7. The State Department of Developmental Services shall provide the
Legislature with a status update on the implementation plan for
increasing level-of-care staff at the Developmental Centers by March
1, 1999. This status update shall include, at a minimum, the number
of level-of-care staff hired, a list of any special salary incentives

provided, remaining vacancies by classification, and the department's

plan for  filing    filling   those
vacancies. 

8. The State Department of Developmental Services shall provide the
Legislature with a status update on the forensic population of
consumers residing at the Developmental Centers. This status update
shall, at a minimum, include a three-year projection of the
population,
the installation of security arrangements at each Developmental
Center
to date, a description of any special training provided to employees,
a
description of any special incidents regarding this population, and a

description of any special training programs provided to this
population. 

4300-003-0814--For support of Department of Developmental
Services, for payment to Item 4300-003-0001, payable from the
California State Lottery Education Fund  . . . 517,000

Provisions:

1. All funds received pursuant to Proposition 37 that are allocable
to
the Department of Developmental Services pursuant to Section 8880.5
of the Government Code, and that are in excess of the amount
appropriated in this item, are hereby appropriated in augmentation of

this item. These additional funds may be expended only upon written
approval of the Director of Finance.

4300-003-0890--For support of Department of Developmental
Services, for payment to Item 4300-003-0001, payable from the
Federal Trust Fund  . . . 787,000

4300-004-0001--For support of Department of Developmental
Services (Proposition 98), for Developmental Centers  . . .
13,822,000

Schedule:

(a) 20-Developmental Centers Program  . . . 19,692,000

(1) 20.17-AB 1202 Contracts  . . . 7,311,000

(2) 20.66-Medi-Cal Eligible Education Services  . . . 12,381,000

(b) Reimbursements  . . . -5,870,000

Provisions:

1. Of the amount appropriated in this item,  $5,297,000
 
$5,535,000   is to be used to provide the General Fund match for

Medi-Cal Eligible Education Services.

4300-101-0001--For local assistance, Department of Developmental
Services, for Regional Centers  . . .  611,968,000 
 612,653,000 

Schedule:

10.10-Regional Centers

(a) 10.10.010-Operations  . . .  275,106,000 
 275,791,000 

(b) 10.10.020-Purchase of  Services  . . . 1,080,736,000

(c) 10.10.060-Early Intervention Programs  . . . 22,344,000

(d) 10.20.010-Program Development  . . . 1,810,000

(e) Reimbursements  . . . -723,564,000

(f) Amount payable from Developmental Disabilities Program
Development Fund (Item 4300-1010172)  . . . -2,150,000

(g) Amount payable from Developmental Disabilities Services
Account (Item 4300-101-0496)  . . . -30,000

(h) Amount payable from Federal Trust Fund (Item 4300-101-0890)
. . . -42,284,000

Provisions:

1. Upon order of the Director of Finance, the Controller shall
transfer
such funds as are necessary between this item and Item
4300-003-0001. The Director of Finance may authorize the transfer of
funds between this item and Item 4260-101-0001 for the state's share
of expenditures for developmental services provided to persons
eligible under the California Medical Assistance Program.

3. A loan shall be made available from the General Fund to the State
Department of Developmental Services not to exceed a cumulative
total of $110,000,000. The loan funds shall be transferred to this
item
as needed to meet cash-flow needs due to delays in collecting
reimbursements from the Health Care Deposit Fund, and are subject
to the repayment provisions of Section 16351 of the Government
Code.

4. Upon order of the Director of Finance, the Controller shall
transfer
such funds as are necessary between this item and Item
5160-001-0001 to provide for the transportation costs to and from
work activity programs of clients who are receiving vocational
rehabilitation services through the Vocational Rehabilitation/Work
Activity Program (VR/WAP) Transition program.

5. Upon order of the Director of Finance, in order to more
effectively
meet client service needs, the Controller shall transfer the General
Fund share of program costs as necessary between this item and Items
5160-001-0001 and 5160-101-0001 to provide for the net transfer of
clients between the De-partment of Developmental Services and the
Department of Rehabilitation for the following:

(a) The conversion of regional center day programs to work activity
or
supported employment programs.

(b) The transfer between day programs and  VR/WAP or
VR/Supported Employment Programs.

(c) Clients originating from subdivision (b) of this provision who
transfer to a work activity or a supported employment program upon
closure from VR.

  The transfer of funds shall be accomplished through a budget
revision, on a quarterly basis, in the fiscal year in which the
clients
initially transferred from the regional center day programs.

6. The State Department of Developmental Services shall present the
results of any audit review or findings conducted to determine state
contract compliance, federal fiscal compliance, and performance
contract measures outcomes at publicly held regional center board
meetings.

7. The State Department of Developmental Services, when allocating
funds for the purpose of expanding clinical staff, shall consider the

need to provide additional resources to regional centers located in
rural
or medically underserved areas since these areas have limited access
to medical services generally.

8. The State Department of Developmental Services shall develop a
new ratesetting methodology for Adult Day and In-Home Respite
programs by June 30, 1999.

9. The State Department of Developmental Services shall survey all
regional centers and secure data from the data base of the department

to ascertain the incidence of autism and pervasive developmental
disorders in California. The department shall compile the number of
persons who entered the regional center system during the period
between January 1, 1988, to January 1, 1998, inclusive, with the
diagnosis of autism and pervasive developmental disorders. The
survey shall include a comparison during the period between January
1, 1988, to January 1, 1998, inclusive, of the numbers of persons
with
each of the other disabilities as defined by the Lanterman
Developmental Disabilities Services Act (Division 4.5 (commencing
with Section 4500) of the Welfare and Institutions Code) and those
diagnosed with autism and pervasive developmental disorders. The
department shall report its findings to the Legislature by March 1,
1999.

10. Of the funds appropriated in Schedule (b), $150,000 shall be used

to support access to and coordination of donated dental services.

11. Upon approval of the Director of Finance, the appropriation made
by this item shall be augmented by an amount not to exceed
$10,300,000 ($5,000,000 General Fund and $5,300,000 in
Reimbursements from the Department of Health Services) to
implement a new rate structure for day programs and in-home respite
agencies. The new rate structure shall include performance outcome
measures. 

4300-101-0172--For local assistance, Department of Developmental
Services, for payment to Item 4300-101-0001, payable from the
Developmental Disabilities Program Development Fund  . . .
2,150,000

Provisions:

1. Notwithstanding any other provision of law, the Director of
Finance
may authorize expenditures for the Department of Developmental
Services in excess of the amount appropriated no sooner than 30 days
after notification in writing of the chairperson of the fiscal
committees
and the Chairperson of the Joint Legislative Budget Committee, or no
sooner than such lesser time as the chairperson of the committee, or
his or her designee, may in each instance determine.

4300-101-0496--For local assistance, Department of Developmental
Services, for payment to Item 4300-101-0001, payable from the
Developmental Disabilities Services Account  . . . 30,000

4300-101-0890--For local assistance, Department of Developmental
Services, for Regional Centers, for payment to Item 4300-101-0001,
payable from Federal Trust Fund  . . . 42,284,000

Provisions:

1. Upon order of the Director of Finance, the Controller shall
transfer
such funds as are necessary between this item and Item
4300-001-0890 in order to effectively administer the Early
Intervention
Program (Part  H    C   of the Individuals
with
Disabilities Education Act).

2. It is the intent of the Legislature that family resource centers
may
operate through a variety of organizations within their local
communities.

3. The State Department of Developmental Services, through
coordination with the regional center, shall ensure local interagency

coordination and collaboration in the provision of early intervention

services, including local training activities, child find activities,
public
awareness, and the family resource center activities.

4. The Bureau of State Audits shall conduct an analysis of the Early
Start Program administered by the State Department of Developmental
Services. This analysis shall include a review of regional center
expenditures for both operations and the purchase of services. At a
minimum, for each regional center, the review shall specifically
identify the case manager to consumer ratio, the types of services
purchased for children 0-3 years of age, the level of expenditure for

each service category, types and volume of generic services accessed
to meet needs, and the level of expenditure  for children 0-3 years
that
is not included as part of the overall Early Start Program.

5. The State Department of Developmental Services shall convene, at
least on a quarterly basis, the Early Start Program Work Group that
was established in 1997. The Work Group shall be used to continue
discussions regarding program recommendations for the purposes of
developing legislation and fiscal information in order to prepare for

program reauthorization, and for general program administration and
operations consultation.

4300-295-0001--For local assistance, Department of Developmental
Services, for reimbursement, in accordance with the provisions of
Section 6 of Article XIIIB of the California Constitution or of
Section
17561 of the Government Code, of the costs of any new program or
increased level of service of an existing program mandated by statute

or executive order, State Controller  . . . 475,000

Schedule:

(1) 98.01.064.480--Judicial Proceedings (Ch. 644, Stats. 1980)  . . .

85,000

(2) 98.01.069.475--Attorney Fees (Ch. 694, Stats. 1975)  . . .
185,000

(3) 98.01.125.380--MR Representation (Ch. 1253, Stats. 1980)  . . .
104,000

(4) 98.01.130.480--Conservatorship (Ch. 1304, Stats. 1980)  . . .
101,000

(5) 98.01.135.776--Guardianship/Conservatorship filings (Ch. 1357,
Stats. 1976)  . . . 0

Provisions:

1. Except as provided in Provision 2 below, allocations of funds
provided in this item to the appropriate local entities shall be made
by
the Controller in accordance with the provisions of each statute or
executive order that mandates the reimbursement of the costs, and
shall be audited to verify the actual amount of the mandated costs in

accordance with subdivision (d) of Section 17561  of the Government
Code. Audit adjustments to prior year claims may be paid from this
item. Funds appropriated in this item may be used to provide
reimbursement pursuant to Article 5 (commencing with Section
17615) of Chapter 4 of Part 7 of Division 4 of Title 2 of the
Government Code.

2. Pursuant to Section 17581 of the Government Code, mandates
identified in the appropriation schedule of this item with an
appropriation of $0 and included in the language of this provision
are
specifically identified by the Legislature for suspension during the

1997-98    1998-99   fiscal year:

(a) Guardianship/Conservatorship filings, (Ch. 1357, Stats. 1976)

3. If any of the scheduled amounts are insufficient to provide full
reimbursement of costs, the Controller may, upon notifying the
Director of Finance in writing, augment those deficient amounts from
the unencumbered balance of any other scheduled amounts therein. No
order may be issued pursuant to this provision unless written
notification of the necessity therefor is provided to the chairperson
of
the committee in each house that considers appropriations and the
Chairperson of the Joint Legislative Budget Committee or his or her
designee.

4300-301-0001--For capital outlay, Department of Developmental
Services  . . . 10,227,000

(1) 55.15.130 Agnews: Fire & Life safety upgrades, Building
54--Preliminary plans and working drawings  . . . 107,000

(1.6) 55.30.230-Lanterman: Security Improvements--Preliminary
plans, working drawings, and construction  . . . 4,992,000

(2) 55.50.330 Porterville: Air condition main kitchen--Preliminary
plans and working drawings  . . . 144,000

(3) 55.50.340 Porterville: Forensic client training
building--Preliminary plans, working drawings and construction  . . .

1,532,000

(3.5) 55.50.350-Porterville: Security Improvements Phase
II--Preliminary plans, working drawings, and construction  . . .
2,654,000

(4) 55.10.300 Minor Projects  . . . 798,000

Provisions:

1. Due to the urgent public safety issues associated with the
projects
 identified   in Schedules 3 and 3.5, the State Department
of
Developmental Services and the Department of General Services shall
contract with architectural and engineering consultants in accordance

with Section 1330 of Title 21 of the California Code of Regulations
 for these projects  . In order to expedite the design and
construction of these security improvements for the forensic
population, the State Department of Developmental Services and the
Department of General Services shall, in implementing this provision,

use emergency contract procedures for the design and construction
phases in accordance with Section  3.10.1   
3.10 
of the State Contracting Manual and Section  10122  

1102   of the Public Contract Code, and shall expedite the
capital
outlay process, as defined in Section 6800 of the State
Administrative
Manual.

4300-490--Reappropriation, Department of Developmental Services.
Notwithstanding any other provision of law, as of June 30, 1998, the
balances of the appropriations provided in the following citations
are
reappropriated for the purposes specified and  for the
purposes set
forth in Provision 1 of this item, and   shall be available
for
expenditure until June 30, 1999.

001--General Fund:

(1) Item 4300-101-0001 (a) 10.10.010 and (b) 10.10.020, Budget Act
of 1997, for regional centers.  Following satisfaction of the

requirements of Provision 1, one-half    One-half  
of the
savings generated by regional centers operating under
performance-based contracts shall be reappropriated for one-time
expenditures that are approved by the Department of Developmental
Services. 

Provisions:

1. Of the amount reappropriated by this item, $1,500,000 shall be
expended by the regional centers for one-time expenditures for infant

mental health services public awareness, training, outreach, and
startup
of multidisciplinary programs that consolidate all sources of funds.



4440-001-0001--For support of Department of Mental Health  . . .
25,245,000

Schedule:

(a) 10-Community Services  . . . 28,172,000

(b) 20-Long-Term Care Services  . . . 8,901,000

(c) 35.01-Departmental Administration  . . . 14,115,000

(d) 35.02-Distributed Departmental Administration  . . . -14,115,000

(e) Reimbursements  . . . -9,593,000

(ex) Less funding provided by capital outlay (Item 4440-301-0001)  .

. . -168,000

(f) Amount payable from the Federal Trust Fund (Item 4440-0010890)
. . . -2,067,000

Provisions:

1. Upon order of the Director of Finance, and following 30-day
notification to the Joint Legislative Budget Committee, the
Controller
shall transfer between this item and Item 4440-016-0001 those funds
that are necessary for direct community services, as well as
administrative and ancillary services related to the provision of
direct
services.

2. Of the funds appropriated for support of the Sexually Violent
Predator program, any funds in excess of the amount needed for the
program shall revert to the General Fund unless the expenditure of
those funds is approved by the Department of Finance. Approval of
the Department of Finance may not be effective sooner than 30 days
after notification to the Joint Legislative Budget Committee.

3. If the federal funds appropriated for support of the State
Department
of Mental Health/Department of Rehabilitation Cooperative Program
are not made available to the state, the positions authorized to
support
this program shall be eliminated.

4440-001-0890--For support of Department of Mental Health, for
payment to Item 4440-001-0001, payable from the Federal Trust Fund
. . . 2,067,000

Provisions:

1. Upon order of the Department of Finance, the State Controller
shall
transfer such funds as are necessary between this item and Item
4440-101-0890.

4440-011-0001--For support of the State Hospitals, Department of
Mental Health  . . .  283,015,000 
 282,015,000 

Schedule:

(a) 20.10-Long-Term Care Services-Lanterman-Petris-Short  . . .
122,063,000

(b) 20.20-Long-Term Care Services-Penal Code and Judicially
Committed  . . .  285,386,000 
 284,386,000 

(c) 20.30-Long-Term Care Services-Other State Hospital Services  .
. . 55,501,000

(d) Reimbursements  . . . -179,648,000

(e) Amount payable from the California State Lottery Education Fund
(Item 4440-011-0814)  . . . -287,000

Provisions:

1. Upon order of the Director of Finance, the Controller shall
transfer
such funds as are necessary between this item and Items
4300-003-0001, 4300-004-0001, 5240-001-0001, and 5460-001-0001.

2. Upon order of the Director of Finance, and following 30-day
notification to the Joint Legislative Budget Committee, the
Controller
shall transfer between this item and Item 4440-016-0001 those funds
that are necessary for direct community services, as well as
administrative and ancillary services related to the provision of
direct
services.

3. Upon approval of the State Department of Mental Health, a portion
of the funds appropriated in Schedule (b) shall be available to
reimburse counties for the cost of treatment and legal services to
patients in the four State Department of Mental Health State
Hospitals,
pursuant to Section 4117 of the Welfare and Institutions Code.
Expenditures made under this item shall be charged to either the
fiscal
year in which the claim is received or the fiscal year in which the
Controller issues the warrant. Claims filed by local jurisdictions
for
legal services may be scheduled by the Controller for payment.

4. The reimbursements identified in Schedule (d) of this item shall
include amounts received by the State Department of Mental Health
as a result of billing for LPS state hospital bed day expenditures
attributable to conservatees who are gravely disabled as defined in
subparagraph (B) of paragraph (1) of subdivision (h) of Section 5008
of the Welfare and Institutions Code (Murphy Conservatee).

5. Of the total amount attributable in the 1998-99 fiscal year to
patient-generated collections for LPS patients, a total of $8,000,000

shall be transferred as revenue to the General Fund, and the
remainder
shall be used to offset county costs for LPS state hospital beds.

6. Of the funds appropriated for the Sexually Violent Predator
program, any funds in excess of the amount needed for the program
shall revert to the General Fund unless the expenditure of those
funds
is approved by the Department of Finance. Approval of the
Department of Finance may not be effective sooner than 30 days after
notification to the Joint Legislative Budget Committee.

7. The State Department of Mental Health shall consult with the
Sheriff of the County of Napa and the Police Chief of the City of
Napa
in the development, and ongoing modification, of a security plan for
Napa State Hospital.

8. The State Department of Mental Health shall provide specialized
training to local law enforcement located in the immediate vicinity
of
Napa State Hospital or Metropolitan State Hospital, as needed, in
order to ensure both patient and local community safety. At a
minimum, the training shall include information on how to identify a
patient, procedures for notifying the state hospitals, and techniques
for
diffusing and appropriately controlling potentially difficult
situations.

9. The State Department of Mental Health shall provide specialized
training to level-of-care and, as necessary, non-level-of-care, staff
at
both Napa  and Metropolitan State Hospitals to ensure the safest and
most therapeutic environment possible for both patients and staff.

10. The State Department of Mental Health shall provide, to the
fiscal
and policy committees of the Legislature, the City of Napa, and the
County of Napa, quarterly status updates, beginning in September of
1997, on the progress of modifications at the Napa State Hospital.

11. The State Department of Mental Health shall provide a status
update to the Legislature by January 1, 1999, regarding patients
referred, or while in custody under, the Penal Code. This status
update,
at a minimum, shall include a three-year projection of the patient
population, the installation of additional security arrangements to
date,
a description of any special training provided to employees, a
description of any special incidents regarding this patient
population,
and a description of any special training programs provided to this
patient population.

12. Transfers of low- and medium-security risk forensic patients to
Metropolitan State Hospital shall be arranged on a flow basis to
ensure
community security and safety and patient stability. Increases in
forensic patients at Metropolitan State Hospital shall occur over
several months and in no instance shall the number of patients
transferred exceed 30 patients in any one month.

4440-011-0814--For support of the Department of Mental Health, for
payment to Item 4440-011-0001, payable from the California State
Lottery Education Fund  . . . 287,000

Provisions:

1. All funds received pursuant to Proposition 37 that are allocable
to
the Department of Mental Health pursuant to Section 8880.5 of the
Government Code, and that are in excess of the amount appropriated
in this item, are appropriated in augmentation of this item. These
additional funds may be expended only upon written approval of the
Director of Finance.

4440-012-0001--For support of the State Hospitals (Proposition 98),
Department of Mental Health  . . . 3,400,000

Schedule:

(a) 20.10-Long-term Care Services-Lanterman-Petris-Short  . . .
3,400,000

(b) 20.30-Other State Hospital Services  . . . 367,000

(c) Reimbursements  . . . -367,000

Provisions:

1. The funds appropriated by this item are available to contract for
the
provision of education services  for mental health patients on state
hospital grounds.

4440-016-0001--For support, Department of Mental Health, for
Conditional Release Services  . . . 16,084,000

Schedule:

(a) 20-Long-Term Care Services  . . . 16,084,000

Provisions:

1. The funds appropriated by this item shall be used to provide
community services as provided in Section 4360 of the Welfare and
Institutions Code. These funds shall support direct community
services, as well as administrative and ancillary services related to
the
provision of direct services.

2. Upon order of the Director of Finance, and following 30-day
notification to the Joint Legislative Budget Committee, the
Controller
shall transfer between this item and Items 4440-001-0001 and
4440-011-0001 those funds that are necessary for direct community
services, as well as administrative and ancillary services related to
the
provision of direct services.

3. The State Department of Mental Health shall provide forensic
conditional release services mandated either in Title 15 (commencing
with Section 1600) of Part 2 or in Title 15 (commencing with Section
2960) of Article 3 of the Penal Code, through contracts with programs

which integrate the supervision and treatment roles and providers
selected consistent with Section 1615 of the Penal Code.

4. Of the funds appropriated by this item, it is intended that no
funds
shall be available for the payment of treatment services to persons
on
court visit from state hospitals to the community as designated in
subdivision (a) of Section 4117 of the Welfare and Institutions Code.


4440-101-0001--For local assistance, Department of Mental Health
. . .  40,356,000 
 60,206,000 

Schedule:

(a) 10.25-Community Services--Other Treatment  . . . 
                                          458,707,000 
 495,742,000 

(b) 10.40-Community Services--Adult System of Care  . . . 
7,772,000 
 8,222,000 

(c) 10.47-Community Services--

 Children's Mental Health Services  . . . 26,354,000

  Children's Mental Health Services  . . . 40,354,000


(d) 10.85-AIDS  . . . 1,500,000

(dx) 10.97-Community Services--Healthy Families  . . . 11,856,000

(e) Reimbursements  . . .  -465,833,000 
 -497,468,000 

Provisions:

1. Augmentations to reimbursements in this item from the Office of
Emergency Services for Disaster Relief are exempt from Section 28.00
of this act. The State Department of Mental Health shall provide
written notification to the Joint Legislative Budget Committee
describing the nature and planned expenditure of these augmentations
when the amount received exceeds $200,000.

2. It is the intent of the Legislature that local expenditures for
mental
health services for Medi-Cal eligible individuals serve as the match
to
draw down maximum federal financial participation to continue the
Short-Doyle/Medi-Cal program.

3. The funds appropriated in Schedule (b) are for allocation to those

counties that had Adult System of Care programs funded pursuant to
Chapter 982 of the Statutes of 1988, and may not be used for any
other
purpose unless approved by the Director of Finance and following
30-day notification to the Joint Legislative Budget Committee.


4. Non-federal funds appropriated by this item which have been
budgeted to meet the state's Temporary Assistance for Needy Families
maintenance-of-effort requirement established pursuant to the federal

Personal Responsibility and Work Opportunity Reconciliation Act of
1996 (P.L. 104-193) may not be expended in any way that would
cause their disqualification as a federally-allowable
maintenance-of-effort expenditure.

5.  

4.   Of the amount appropriated in Schedule (c), $2,000,000
shall
be allocated to replace Children's System of Care (base program)
federal funds for counties losing that funding,  $3,000,000

 $4,000,000   shall be allocated to counties for which the
program is underfunded, and  $1,000,000   
$14,000,000
  shall be allocated to counties seeking to establish their own

Children's System of Care Program  . To the extent that less
than
$2,000,000 is needed to replace expiring federal funds, that funding
may be used for other Children's System of Care activities, including

the provision of funding to support planning grants and systemwide
training to enhance Children's System of Care programs. 

through a request-for-application process. If counties submit
proposals
that do not meet funding requirements, the State Department of Mental

Health shall provide technical assistance to the counties to
eliminate
application deficiencies.

5. Of the amount appropriated by this item, $400,000 shall be used to

provide assistance to Asian-Americans and subethnic communities in
understanding and obtaining mental health services. Through a
competitive bid process, these funds shall be used to focus on (a)
developing and providing educational materials in Chinese,
Vietnamese, Korean, Hmong, and Tagalog, (b) providing training
materials and sessions for mental health professionals on cultural
and
language issues pertaining to access to services, (c) conducting
community outreach with bilingual intake and referral for clients,
and
(d) collecting statewide data on mental health treatment provided to
these communities. 

4440-101-0311--For local assistance, Department of Mental Health,
all funds that are transferred into the Traumatic Brain Injury Fund
pursuant to subdivision (f) of Section 1464 of the Penal Code  . . .

500,000

Schedule:

(a) 10.87-Community Services--Traumatic Brain Injury Projects  . . .

900,000

(b) Reimbursements  . . . -400,000

4440-101-0890--For local assistance, Department of Mental Health,
payable from the Federal Trust Fund  . . . 36,719,000

Schedule:

(a) 10.25-Community Services--other treatment  . . . 21,860,000

(b) 10.47-Community Services--Children's Mental Health Services  .
. . 12,511,000

(c) 10.75-Community Services--Homeless Mentally Disabled  . . .
2,348,000

Provisions:

1. The funds appropriated by this item are for assistance to local
agencies in the establishment and operation of mental health
services,
in accordance with Division 5 (commencing with Section 5000) of the
Welfare and Institutions Code.

2. Notwithstanding any other provision of law, funds appropriated in
Item 4440-101-0890 of the Budget Act of 1997 for rollover by the
counties in the 1998-99 fiscal year shall be used only for the
specified
purposes for which they were allocated, subject to review and
approval
of the Department of Mental Health.

3. The Department of Mental Health may authorize advance payments
of federal grant funds on a monthly basis to the counties for
grantees.
These advance payments may not exceed one-twelfth of  Section 2.00
of the individual grant award for the 1998-99 fiscal year.

4. Upon order of the Department of Finance, the Controller shall
transfer such funds as are necessary between this item and Item
4440-001-0890.

5. Upon order of the Department of Finance, the Controller shall
transfer such funds as are necessary between Schedule (a) and
Schedule (b) to meet federal requirements.

4440-102-0001--For local assistance, Department of Mental Health
(Proposition 98) for early mental health services  . . . 15,000,000

4440-103-0001--For local assistance, Department of Mental Health,
Program 10.25-Community Services: Other Treatment for Mental
Health Managed Care  . . .  169,417,000 
 167,137,000 

Provisions:

1. The allocation of funds appropriated by this item shall be
determined based on a methodology developed by the State
Department of Mental Health in consultation with a statewide
organization representing counties. This methodology shall be based
on a review of actual and projected expenditures for mental health
services for Medi-Cal beneficiaries, by county.

2. Of the amount appropriated by this item, $8,000,000 shall be
transferred to the Mental Health Managed Care Deposit Fund (Fund
0865).

3. Upon order of the Director of Finance and agreement between the
State Department of Mental Health and the State Department of Health
Services, the State Controller shall transfer between this item and
Item
4260-101-0001 any General Fund amount determined necessary to
fully reflect the transfer of responsibility for administration of
mental
health services pursuant to the implementation of mental health
managed care, including any adjustments that may be necessary to
implement the San Mateo field test.

4. Notwithstanding any other provision of law, the emergency
regulations adopted pursuant to Section 14680 of the Welfare and
Institutions Code to implement the second phase of Mental Health
Managed Care as provided in Part 2.5 (commencing with Section
5775) of Division 5 of the Welfare and Institutions Code shall remain

in effect until July 1, 1999, or until the regulations are made
permanent, whichever occurs first, and shall not be subject to the
repeal provisions of Section 11346.1 of the Government Code until
that time.

5. The State Department of Mental Health shall provide a detailed
status update, including county by county information, on the
implementation of mental health managed care, including progress on
both inpatient and outpatient consolidation, to the fiscal and
appropriate policy committees in each house of the Legislature on or
before January 1, 1999.

4440-111-0001--For local assistance, Department of Mental Health,
for caregiver resource centers serving families of brain-damaged
adults
. . .  10,247,000 
 9,247,000 

Provisions:

1. Of the funds appropriated by this item, $200,000 shall be made
available to the Statewide Resources Consultant and the Caregiver
Resource Centers to carry out responsibilities pursuant to Section
4364
of the Welfare and Institutions Code to (a) increase Huntington's
disease training opportunities and data collection related to the
delivery
of high-quality in-home and out-of-home care for persons with
Huntington's disease, and (b) increase outreach to Huntington's
disease
families for enhanced involvement within the Caregiver Resource
Center system, including, but not limited to, augmenting services,
such
as respite care and specialized family consultation or expanding
family
support groups.

4440-131-0001--For local assistance, Department of Mental Health,
for services to special education pupils  . . . 12,334,000

Provisions:

1. In allocating to the counties funds for mental health services to
pupils who are specified in accordance with Chapter 26.5
(commencing with Section 7570) of Division 7 of Title 1 of the
Government Code and the Individuals with Disabilities Education Act
Section 602(a) Amendments of 1990, as defined in Section 300.5 of
Title 34 of the Code of Federal Regulations, and who meet the
requirements of Section 56026 of the Education Code and Sections
3030 and 3031 of Title 5 of the California Code of Regulations, the
Department of Mental Health may allocate the funds based on the
individual county's needs, in lieu of using the allocation method set

forth in Welfare and Institutions Code Section 5701.

4440-295-0001--For local assistance, Department of Mental Health,
for reimbursement, in accordance with the provision of Section 6 of
Article XIII B of the California Constitution or of Section 17561 of
the
Government Code, or the costs of any new program or increased level
of service of an existing program mandated by statute or executive
order, State Controller  . . . 38,263,000

Schedule:

(1) 98.01.049.877--Coroner's Costs (Ch. 498, Stats. 1977)  . . .
103,000

(2) 98.01.081.579--Short-Doyle Case Management (Ch. 815, Stats.
1979)  . . . 0

(3) 98.01.103.678--Mentally Disordered Offender Recommitments
(Ch. 1036, Stats. 1978)  . . . 181,000

(4) 98.01.111.479--Not Guilty By Reason of Insanity (Ch. 1114, Stats.

1979)  . . . 284,000

(5) 98.01.132.784--Short-Doyle Audits (Ch. 1327, Stats. 1984)  . . .
0

(6) 98.01.135.285--Residential Care Services (Ch. 1352, Stats. 1985)
. . . 0

(7) 98.01.174.784--Services to Handicapped Students (Ch. 1747,
Stats. 1984)  . . . 37,695,000

Provisions:

1. Allocations of funds appropriated by this item to the appropriate
local entities shall be made by the State Controller in accordance
with
the provisions of each statute or executive order that mandates the
reimbursement of the costs, and shall be audited to verify the actual

amount of the mandated costs in accordance with subdivision (d) of
Section 17561 of the Government Code. Audit adjustments to prior
year claims may be paid from this item. Funds appropriated by this
item may be used to provide reimbursement pursuant to Article 5
(commencing with Section 17615) of Chapter 4 of Part 7 of Division
4 of Title 2 of the Government Code.

2. If any of the scheduled amounts are insufficient to provide full
reimbursement of costs, the State Controller may, upon notifying the
Director of Finance in writing, augment those deficient amounts from
the unencumbered balance of any other scheduled amount therein. No
order may be issued pursuant to this provision unless written
notification of the necessity therefor is provided to the chairperson
of
the committee in each house that considers appropriations and the
Chairperson of the Joint Legislative Budget Committee or his or her
designee.

3. Pursuant to Section 17581 of the Government Code, mandates
identified in the appropriation schedule of this item with an
appropriation of $0 and included in the language of this provision
are
specifically identified by the Legislature for suspension during the

1997-98    1998-99   fiscal year:

(a) Short-Doyle Case Management (Ch. 815, Stats. 1979)

(b) Short-Doyle Audits (Ch.1327, Stats. 1984)

(c) Residential Care Services (Ch. 1352, Stats. 1985)

4440-301-0001--For capital outlay, Department of Mental Health  . .
. 6,417,000

Schedule:

(1.1) 55.18.255-SVP Facility--Site search, environmental reports 

,   schematics,  and due diligence    due
diligence,
and   option funds  . . . 5,475,000

(2) 55.45.255-Patton: Fire/Life Safety and Environmental
Improvements, EB Building--Working drawings  . . . 418,000

(3) 55.35.920-Metro: Replace R&T and Administration
Buildings--Preliminary plans and working drawings  . . . 333,000

(4) 55.10.205-Minor Projects  . . . 191,000

4440-301-0660--For capital outlay, Department of Mental Health,
payable from Public Buildings Construction Fund  . . . 33,235,000

Schedule:

(1) 55.18.245-Atascadero: New 250 Bed Hospital Addition
I--Construction  . . . 33,235,000

Provisions:

1. The State Public Works Board may issue lease-revenue bonds, notes
or bond anticipation notes pursuant to Chapter 5 (commencing with
Section 15830) of Part 10b of Division 3 of Title 2 of the Government

Code to finance the construction for the project authorized by this
item.

2. The State Public Works Board and the Department of Mental Health
may obtain interim financing for the project costs authorized in this

item from any appropriate source including but not limited to the
Pooled Money Investment Account pursuant to Sections 16312 and
16313 of the Government Code.

3. The maximum amount of bonds, notes or bond anticipation notes
to be sold shall not exceed the cost of construction and any
additional
amounts necessary to pay interim and permanent financing costs.

4440-301-0768--For capital outlay, Department of Mental Health,
payable from the Earthquake Safety and Public Buildings
Rehabilitation Fund of 1990  . . . 1,253,000

Schedule:

(1) 55.35.920-Metro: Replace R&T  and Administration
Buildings--Preliminary plans and working drawings  . . . 1,253,000

4440-490--Reappropriation, Department of Mental Health. The
unencumbered balances of the appropriations provided for in the
following citations are reappropriated for the purposes and subject
to
the limitations, unless otherwise specified, provided for in those
appropriations:

4440-301-0001--Budget Act of 1997

(3) 55.40.265-Napa: Perimeter Security Fencing- preliminary
plans, working drawings,    Working drawings   and
construction.

(4) 55.40.270-Napa: Improve Domestic Water 
System-preliminary plans, working drawings, and construction.

 System--Construction. 

4700-001-0890--For support of Department of Community Services
and Development, payable from the Federal Trust Fund   . . .
11,718,000

Schedule:

(a) 20--Energy Programs  . . . 10,452,000

(b) 40--Community Services  . . . 2,407,000

(c) 50.01--Administration  . . . 2,904,000

(d)

50.02--Distributed Administration  . . . -2,904,000

(e) Reimbursements  . . . -1,141,000

Provisions:

1. On a federal fiscal year basis, the Department of Community
Services and Development shall make the following program
allocation for the  community services block grant, as a percentage
of
the total block grant:

(a) Administration
  5 percent

The department shall provide the Controller with the dollar value of
this allocation limit, as it relates to the appropriation in this
item, at the
beginning of the state fiscal year, and shall update this information

whenever necessary to reflect federal revisions to the grant.

2. Any unexpended federal funds from Item 4700-001-0890, Budget
Act of 1997, shall be in augmentation of Item 4700-001-0890 of this
act and not subject to the provisions of Section 28.00.

4700-101-0001--For local assistance, Department of Community
Services and Development   . . .  13,000,000 
 4,400,000 

Schedule:

(a) 40-Community Services  . . .  1,000,000 
 2,400,000 

 (b) 45-Migrant Seasonal Farm Workers Food Program  . . .
2,000,000

(c) 50-Naturalization Services  . . . 10,000,000

  (b) 47-Naturalization Services  . . . 2,000,000 


Provisions:

1. Of the funds appropriated by this item,  $2,000,000 shall
be
allocated for the food assistance needs of the legal immigrant,
migrant
seasonal farmworker populations that would be eligible for the
federal
Food Stamp Program but for the passage of Public Law 104-193.
These funds shall be used to expand services to communities with high

percentages of the legal immigrant, migrant seasonal farmworker
population.    $1,350,000 shall be allocated for
homeless
education.

2. The Department of Community Services and Development shall use
the amount appropriated in Schedule (b), as follows:

(a) The department shall contract with, and allocate funds to,
citizenship assistance providers to provide naturalization services,
which shall include, to the extent consistent with applicable federal

law, all of the following:

(1) Outreach services.

(2) Assessment of skills.

(3) Instruction and curriculum development.

(4) Staff development.

(5) Citizenship testing.

(6) Naturalization preparation and assistance.

(7) Regional and state coordination and program evaluation.

(b) Citizenship assistance providers shall give priority for
naturalization services to immigrants rendered ineligible for federal

benefits solely due to the provisions of Public Law 104-193 and any
subsequent amendments to that law in the following order:

(1) Senior citizens and disabled individuals.

(2) Parents of children losing benefits.

(3) Persons otherwise eligible for federal food stamp benefits.

(4) Other legal residents.

(c) The department shall award contracts and allocate funds pursuant
to a competitive bid process open to existing and new service
providers so that the aggregate allocation to citizenship assistance
providers serving each county will be in an amount equal to that
county's percentage of legal noncitizens, as determined by the
department.

(d) (1) In order to be eligible for funding under this provision, a
citizenship assistance provider shall be required to provide a 25
percent match, either through public or private funds or in-kind
contributions, unless the Director of Community Services and
Development waives the matching requirement based on the financial
ability of the provider to meet the matching requirement. The
department shall adopt, pursuant to regulation, a criteria for the
waiver.

(2) A citizenship assistance provider shall be paid 90 percent of the

rate determined by the department, upon filing of a citizenship
application with the federal Immigration and Naturalization Service,
and the remaining 10 percent upon the citizenship application being
approved by the federal Immigration and Naturalization Service.

(3) The provider shall be ineligible to receive funding under this
article
if any officer or employee of the provider who would be involved in
the administration of grant funds has been convicted of a criminal
offense related to the administration of grant funds.

(e) (1) The department shall, within 10 days of awarding contracts to

citizenship assistance providers, provide each county with a listing
of
each provider in the county with information including, but not
limited
to, the provider's address, telephone number, contact person for the
program, hours of operation, target clientele and area of service,
and
scope of services to be offered.

(2) The department shall require all citizenship assistance providers
to
consult with the county in order to assist the county to meet the
naturalization needs of noncitizens.

(f) The department's administrative expenses shall not exceed 5
percent of the total funds appropriated for this program.

(g) For purposes of this provision, "citizenship assistance provider"
or
"provider" means any not-for-profit entity, including a
community-based organization, community college, adult education
program, or local government, that has cultural and linguistic
capabilities, and that has been approved to provide services under
this
provision by the department. Local governments may subcontract with
not-for-profit entities for these purposes.

(h) The department may adopt emergency regulations in order to
implement this provision, in accordance with the Administrative
Procedure Act, Chapter 3.5 (commencing with Section 11340) of Part
1 of Division 3 of Title 2 of the Government Code. The adoption of
regulations pursuant to this provision shall be deemed to be an
emergency and considered by the Office of Administrative Law as
necessary for the immediate preservation of the public peace, health
and safety, or general welfare. Emergency regulations adopted
pursuant to this provision shall be exempt from the review and
approval of the Office of Administrative Law. The emergency
regulations authorized by this provision shall be submitted to the
Office of Administrative Law for filing with the Secretary of State
and
publication in the California Code of Regulations. 

4700-101-0890--For local assistance, Department of Community
Services and Development, for assistance to individuals and payments
to service providers, payable from the Federal Trust Fund   . . .
109,633,000

Schedule:

(a) 20-Energy Programs  . . . 62,581,000

(b) 40-Community Services  . . . 50,482,000

(c) Reimbursements  . . . -3,430,000

Provisions:

1. On a federal fiscal year basis, the department shall make the
following program allocations for the community services block grant
as a percentage of the total block grant:

(a) Discretionary  . . . 5 percent

(b) Migrant and seasonal farm workers  . . . 10 percent

(c) Native American Indian programs  . . . 3.9 percent

(d) Community action agencies and rural community services  . . .
76.1 percent

  All grantees under the community services block grant program shall

be subject to standard state contracting procedures required under
the
program.

2. The department shall provide the State Controller with the dollar
value of these allocation limits, as they relate to the appropriation
in
this item, at the beginning of the fiscal year, and shall update this

information whenever necessary to reflect federal revisions to the
grant.

3. Funds collected by the department from energy contractors as a
result of overpayments shall be used for local assistance for energy
programs, and funds collected from community service block grant
(CSBG) contractors as a result of overpayments shall be used for
local
assistance for CSBG programs in 1998-99.

4. Funds scheduled in Item 4700-101-0890 may be transferred to Item
4700-001-0890 for the administration of the Low Income Home
Energy Assistance Programs, subject to approval of the Department of
Finance.

5. Any unexpended federal funds from Item 4700-101-0890, Budget
Act of 1997, shall be in augmentation of Item 4700-101-0890 of this
act and not subject to the provisions of Section 28.00.

5100-001-0001--For support of Employment Development
Department, for payment to Item 5100-001-0870  . . . 
23,622,000

 24,872,000 

 Provisions:

1. Of the funds appropriated by this item, $500,000 shall be
allocated
and disbursed by the Employment Development Department to the
administrative entity of the job training Service Delivery Area for
the
City of Los Angeles to support no more than four at-risk youth
employment demonstration projects by private, nonprofit entities, and

$150,000 shall be allocated and disbursed by the department to each
of the administrative entities of the job training Service Delivery
Areas
of the City of Oakland, the County of San Diego and City of San
Diego, the City and County of San Francisco, the City of Santa Ana,
and the County of Fresno to support in each of those jurisdictions no

more than two youth demonstration projects by private, nonprofit
entities. 

5100-001-0184--For support of Employment Development
Department, for payment to Item 5100-001-0870, payable from the
Employment Development Department Benefit Audit Fund  . . .
8,905,000

Provisions:

1. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

5100-001-0185--For support of Employment Development
Department, for payment to Item 5100-001-0870, payable from the
Employment Development Contingent Fund  . . . 36,915,000

Provisions:

1. Funds appropriated in this item are in lieu of the amounts that
otherwise would have been appropriated for administration pursuant
to Section 1586 of the Unemployment Insurance Code.

2. Notwithstanding the provisions of Item 9840-001-0494, the Director

of Finance may authorize the creation of deficiencies pursuant to
Section 11006 of the Government Code for the purposes of this item.

3. The amount appropriated in this item includes revenues derived
from the assessment of fines and penalties imposed as specified in
Section 13332.18 of the Government Code.

5100-001-0514--For support of Employment Development
Department, for payment to Item 5100-001-0870, payable from the
Employment Training Fund  . . . 82,382,000

Provisions:

1. Notwithstanding subdivision (a) of Section 2.00 of this act, funds

disencumbered from Employment Training Fund training contracts

          during 1998-99 are hereby appropriated for transfer to, and
in
augmentation of, this item for allocation by the Employment Training
Panel for training contracts. The Employment Development
Department shall notify the Legislature by September 1, 1999, of the
actual amount of funds appropriated pursuant to this provision.

2. Any funds appropriated for the Employment Development
Department, State-Local Cooperative Labor Market Information
Program, if not expended by June 30, 1999, shall be made available to

the Employment Training Fund for purposes of funding job training
contracts.

3. Of the funds appropriated by this item, at least $10,000,000 shall
be
used for training activities for small businesses or consortia of
small
businesses. For purposes of this provision, "small business" means a
business that employs fewer than 100 persons. In addition, the
Employment Training Panel shall dedicate administrative support for
the purpose of reaching out to, and assisting, small businesses, or
consortia of small businesses, in accessing the panel's training
contract
funds.

4. In order to reduce the incidence of contract disencumberances, the

Employment Training Panel shall adopt performance goals of annual
reductions. For the 1998-99 fiscal year, disencumberances shall be
reduced to no more than 35 percent of available funds, 30 percent for

the 1999-2000 fiscal year, 25 percent for the 2000-01 fiscal year,
and
22 percent for the 2001-02 fiscal year. The panel shall report to the

Chairperson of the Joint Legislative Budget Committee and the
chairpersons of the budget committees of each house of the
Legislature
by April 15, 1999, and annually thereafter on the projected
disencumberances for each ensuing fiscal year.

5100-001-0579--For support of Employment Development
Department, payable from the Welfare-to-Work Grant Fund--Federal,
to be available for expenditure during the 1998-99, 1999-00, and
2000-01  . . . 54,512,000

5100-001-0588--For support of Employment Development
Department, for payment to Item 5100-001-0870, payable from the
Unemployment Compensation Disability Fund  . . . 136,525,000

Provisions:

1. The Employment Development Department shall submit on October
1, 1998, and April 20, 1999, to the Department of Finance for its
review and approval, an estimate of expenditures for both the current

and budget years, including the assumptions and calculations
underlying Employment Development Department projections for
support expenditures from this item. The Department of Finance shall
approve, or modify, the assumptions underlying all estimates within
15 working days of the due date. If the Department of Finance does
not approve or modify in writing, the assumptions underlying all
estimates within 15 working days of the due date, the Employment
Development Department shall consider the assumptions and
calculations approved as submitted. If the Department of Finance
determines that the estimate of support expenditures differs from the

amount appropriated by this item, the Director of Finance shall so
report to the Legislature. At the time the report is made, the amount
of
this appropriation shall be adjusted by the difference between this
Budget Act appropriation and the approved estimate of the Department
of Finance. Revisions for the support of the Disability Insurance
program reported pursuant to this provision are not subject to
Section
28.00 of this act.

2. Notwithstanding the provisions of Item 9840-001-0988, the Director

of Finance may authorize the creation of deficiencies pursuant to
Section 11006 of the Government Code, for the purposes of this item.


5100-001-0869--For support of state programs under the Job Training
Partnership Act, Employment Development Department, for Program
60--Job Training Partnership, payable from the Consolidated Work
Program Fund  . . . 163,704,000

Schedule:

(a) 60.11-Administrative Cost Pool  . . . 8,653,000

(b) 60.20-Incentive and Technical Assistance  . . . 8,653,000

(c) 60.30-Older Workers  . . . 7,589,000

(d) 60.40-Educational Linkages  . . . 13,845,000

(e) 60.60-Displaced Workers Program  . . . 91,381,000

(f) 60.65-Veterans  . . . 733,000

(g) 60.85-School to Career  . . . 32,850,000

Provisions:

1. The funds appropriated in this item may be transferred to Item
5100-101-0869, upon the approval of the Department of Finance,
when service delivery areas decide to operate projects under the
federal guidelines applicable to Adult and Youth Training Programs.

2. Notwithstanding subdivision (a) of Section 2.00 of this act, funds

disencumbered from Job Training Partnership Act subgrants during
the 1998-99 fiscal year are hereby appropriated for transfer to, and
in
augmentation of, this item for allocation by the Employment
Development Department for Job Training Partnership Act subgrants.

3. The Employment Development Department shall submit on October
1, 1998, and April 20, 1999, to the Department of Finance for its
review and approval, an estimate of federal grants and expenditures
for
both the 1998-99 and 1999-2000 fiscal years, including the
assumptions and calculations underlying the Employment
Development Department projections. The Department of Finance
shall approve, or modify the assumptions underlying, all estimates
within 15 working days of the due date. If the Department of Finance
does not approve or modify in writing the assumptions underlying all
estimates within 15 working days of the due date, the Employment
Development Department shall consider the assumptions and
calculations approved as submitted. If the Department of Finance
determines that the estimate of federal grants and expenditures
differs
from the amount appropriated by this item, the Director of Finance
shall so report to the Legislature. At the time the report is made,
the
amount of this appropriation shall be adjusted by the difference
between this Budget Act appropriation and the approved estimate of
the Department of Finance. Revisions reported pursuant to this
provision are not subject to Section 28.00 of this act.

5100-001-0870--For support of Employment Development
Department, payable from the Unemployment Administration
Fund--Federal  . . . 550,568,000

Schedule:

(a)
10-Employment and Employment Related Services  . . . 
201,482,000 
 202,732,000 

(b)
21-Tax Collections and Benefit Payments  . . . 535,056,000

(c) 22-California Unemployment Insurance Appeals Board  . . .
54,508,000

(d) 30.01-General Administration  . . . 48,228,000

(e)
30.02-Distributed General Administration  . . . -43,964,000

(f) 50-Employment Training Panel  . . . 75,611,000

(g) Reimbursements  . . . -30,842,000

(h)
Amount payable from the General Fund (Item 5100-001-0001)  . . .
 -23,622,000 
 -24,872,000 

(i)
Amount payable from the Employment Development Department
Benefit Audit Fund (Item 5100-001-0184)  . . . -8,905,000

(j)
Amount payable from the Employment Development Contingent Fund
(Item 5100-001-0185)  . . . -36,915,000

(k) Amount payable from the Employment Training Fund (Item
5100-001-0514)  . . . -82,382,000

(l) Amount payable from the Unemployment Compensation Disability
Fund (Item 5100-001-0588)  . . .   -136,525,000

(m) Amount payable from the School Employees Fund (Item
5100-001-0908)  . . . -762,000

(n) Amount payable from the Employment Development Contingent
Fund (Sec. 1586, Unemployment Insurance Code)  . . . -400,000

Provisions:

1. Funds appropriated in this item are in lieu of the amounts that
otherwise would have been appropriated pursuant to Section 1555 of
the Unemployment Insurance Code.

2. The Employment Development Department (EDD) shall submit on
October 1, 1998, and April 20, 1999, to the Department of Finance for

its review and approval, an estimate of expenditures for both current

and budget years, including the assumptions and calculations
underlying EDD projections for support expenditures for the
Unemployment Insurance program from this item. The Department of
Finance shall approve, or modify, the assumptions underlying all
estimates within 15 working days of the due date. If the Department
of Finance does not approve or modify in writing the assumptions
underlying all estimates within 15 working days of the due date, EDD
shall consider the assumptions and calculations approved as
submitted.
If the Department of Finance determines that the estimate of support
expenditures differs from the amount appropriated by this item, the
Director of Finance shall so report to the Legislature. At the time
the
report is made, the amount of this appropriation shall be adjusted by

the difference between this appropriation and the Department of
Finance approved estimate for the Unemployment Insurance program.
Revisions for the support of the Unemployment Insurance program
that are reported pursuant to this provision are not subject to
Section
28.00 of this act.

 3. Positions for the Trade Adjustment Act program that are
supported entirely by federal funds appropriated by this item shall
be
eliminated if the Employment Development Department determines
that sufficient federal funds will not be available to fund those
positions.

4. Positions for the North American Free Trade Agreement Act
program that are supported entirely by federal funds appropriated by
this item shall be eliminated if the Employment Development
Department determines that sufficient federal funds will not be
available to fund those positions. 

5100-001-0908--For support of Employment Development
Department, for payment to Item 5100-001-0870, payable from the
School Employees Fund  . . . 762,000

Provisions:

1. Notwithstanding the provisions of Item 9840-001-0988, the Director

of Finance may authorize the creation of deficiencies pursuant to
Section 11006 of the Government Code, for the purposes of this item.


2. Funds appropriated in this item are in lieu of the amounts that
otherwise would have been appropriated for administration pursuant
to Section 822 of the Unemployment Insurance Code.

3. Provision 2 of Item 5100-001-0870 also applies to this item.

5100-011-0184--For support of the Employment Development
Department, the amount of the unencumbered balance exceeding
$1,000,000 in the Employment Development Department Benefit
Audit Fund as of June 30, 1999, shall be transferred to the General
Fund.

5100-011-0185--For support of Employment Development
Department payable from the Employment Development Contingent
Fund. Notwithstanding any other provision of law, the State
Controller
shall transfer to the General Fund the amount, as determined by the
Director of Finance, in the Employment Development Contingent
Fund as of June 30, 1999, that is in excess of the $1,000,000 reserve

required by Section 1590 of the Unemployment Insurance Code.

5100-011-0890--For support of Employment Development
Department, payable from the Federal Trust Fund, for transfer to the
Unemployment Administration Fund  . . . (550,568,000)

5100-021-0890--For support of Employment Development
Department, payable from the Federal Trust Fund, for transfer to the
Consolidated Work Program Fund  . . . (163,704,000)

5100-031-0890--For support of Employment Development
Department, payable from the Federal Trust Fund, for transfer to the
Welfare-to-Work Fund.  . . . (54,512,000)

5100-101-0579--For local assistance under the Welfare to-Work Grant,
Employment Development Department, payable from the
Welfare-to-Work Fund--Federal, to be available for expenditure during

the 1998-99, 1999-00, and 2000-01 fiscal years  . . . 147,050,000

Provisions:

1. Notwithstanding subdivision (a) of Section 2.00 of this act, funds

disencumbered from the Welfare-to-Work Grant during 1998-99 are
hereby appropriated for transfer to, and in  augmentation of, this
item
for allocation by the Employment Development Department.

5100-101-0588--For local assistance, Employment  Development
Department, for Program 21--Tax Collections and Benefit Payments,
payable from the Unemployment Compensation Disability Fund  . . .
1,579,462,000

Provisions:

1. Notwithstanding Item 9840-001-0988, the Director of Finance may
authorize the creation of deficiencies pursuant to Section 11006 of
the
Government Code for the purposes of this item.

2. Funds appropriated in this item are in lieu of the amounts that
otherwise would have been appropriated pursuant to Section 3012 of
the Unemployment Insurance Code.

3. The Employment Development Department shall submit on October
1, 1998, and April 20, 1999, to the Department of Finance for its
review and approval, an estimate of expenditures for both current and

budget years, including the assumptions and calculations underlying
Employment Development Department projections for benefits
payable from this item. The Department of Finance shall approve, or
modify the assumptions underlying, all estimates within 15 working
days of the due date. If the Department of Finance does not approve
or modify in writing the assumptions underlying all estimates within
15 working days of the due date, the Employment Development
Department shall consider the assumptions and calculations approved
as submitted. If the Department of Finance determines that the
estimate of benefit expenditures differs from the amount appropriated

by this item, the Director of Finance shall so report to the
Legislature.
At the time the report is made, the amount of this appropriation
shall
be adjusted by the difference between this Budget Act appropriation
and the approved estimate of the Department of Finance. Revisions
reported pursuant to this provision are not subject to Section 28.00
of
this act.

5100-101-0869--For local assistance under the Job Training
Partnership Act, Employment Development Department, for Program
60-Job Training Partnership, payable from the Consolidated Work
Program Fund  . . . 411,519,000

Schedule:

(a) 60.60-Displaced Workers Program  . . . 118,042,000

(b) 60.70-Adult and Youth Training Programs  . . . 148,547,000

(c) 60.80-Summer Youth Programs  . . . 144,930,000

Provisions:

1. Notwithstanding subdivision (a) of Section 2.00 of this act,
funds
disencumbered from Job Training Partnership Act subgrants during
1998-99 are hereby appropriated for transfer to and in augmentation
of this item for allocation by the Employment Development
Department for Job Training Partnership Act subgrants.

2. The Employment Development Department shall submit on October
1, 1998, and April 20, 1999, to the Department of Finance for its
review and approval, an estimate of federal grants and expenditures
for
both current and budget years, including the assumptions and
calculations underlying Employment Development Department
projections. The Department of Finance shall approve, or modify the
assumptions underlying, all estimates within 15 working days of the
due date. If the Department of Finance does not approve or modify in
writing the assumptions underlying all estimates within 15 working
days of the due date, the Employment Development Department shall
consider the assumptions and calculations approved as submitted. If
the Department of Finance determines that the estimate of federal
grants and expenditures differs from the amount appropriated by this
item, the Director of Finance shall so report to the Legislature. At
the
time the report is made, the amount of this appropriation shall be
adjusted by the difference between this Budget Act appropriation and
the approved estimate of the Department of Finance. Revisions
reported pursuant to this provision are not subject to Section 28.00
of
this act.

5100-101-0871--For local assistance, Employment Development
Department, for Program 21--Tax Collections and Benefit Payments,
payable from the Federal Unemployment Fund  . . . 2,659,454,000

Provisions:

1. Funds appropriated in this item are in lieu of the amounts that
would have otherwise been appropriated pursuant to Section 1521 of
the Unemployment Insurance Code.

2. Provision 3 of Item 5100-101-0588 is also applicable to this item.


5100-101-0890--For local assistance, Employment Development
Department, payable from the Federal Trust Fund, for transfer to the
Consolidated Work Program Fund  . . . (411,519,000)

5100-101-0908--For local assistance, Employment Development
Department, for Program 21--Tax Collections and Benefit Payments,
payable from the School Employees Fund  . . . 30,057,000

Provisions:

1. Notwithstanding Item 9840-001-0988, the Director of Finance may
authorize the creation of deficiencies pursuant to Section 11006 of
the
Government Code for the purposes of this item.

2. Funds appropriated in this item are in lieu of the amounts that
otherwise would have been appropriated for benefits pursuant to
Section 822 of the Unemployment Insurance Code.

3. Provision 3 of Item 5100-101-0588 also applies to this item.

5100-111-0890--For local assistance, Employment Development
Department, payable from the Federal Trust Fund, for transfer to the
Federal Unemployment Fund (0871)  . . . (2,659,454,000)

5100-131-0890--For local assistance, Employment  Development
Department, payable from the Federal Trust Fund, for transfer to the
Welfare-to-Work  Fund  . . . (147,050,000)

5100-301-0588--For capital outlay, Employment Development
Department, payable from the Unemployment Compensation
Disability Fund  . . . 3,000,000

Schedule:

(1) 80.35.001-San Francisco JS/UI/DI Office--Renovation and
Asbestos Abatement--Working drawings and construction  . . .
3,000,000

5100-301-0870--For capital outlay, Employment Development
Department, payable from the Unemployment Administration
Fund-Federal  . . . 1,795,000

Schedule:

(1) 80.35.001-San Francisco JS/UI/DI Office--Renovation and
Asbestos Abatement--Working drawings and construction  . . .
1,000,000

(2) 80.92.001-San Bernardino Office--Renovation and Asbestos
Abatement--Preliminary plans and working drawings  . . . 222,000

(3) 80.37.001-Minor Projects  . . . 573,000

5100-301-0871--For capital outlay, Employment Development
Department payable from the Unemployment Fund-Federal  . . .
3,119,000

Schedule:

(1) 80.35.001-San Francisco JS/UI/DI Office--Renovation and
Asbestos Abatement--Working drawings and construction  . . .
3,119,000

5100-301-0890--For capital outlay, Employment Development
Department, payable from the Federal Trust Fund, for transfer to the
Unemployment Administration Fund-Federal  . . . (1,795,000)

Schedule:

(1) 80.35.001-San Francisco JS/UI/DI Office--Renovation and
Asbestos Abatement--Working drawings and construction  . . .
(1,000,000)

(2) 80.92.001--San Bernardino Office--Renovation and Asbestos
Abatement--Preliminary plans and working drawings  . . . (222,000)

(3) 80.37.001-Minor Projects  . . . (573,000)

5100-302-0890--For capital outlay, Employment Development
Department, payable from the Federal Trust Fund, for transfer to the
Unemployment Fund-Federal  . . . (3,119,000)

Schedule:

(1) 80.35.001-San Francisco JS/UI/DI Office--Renovation and
Asbestos Abatement--Working drawings and construction  . . .
(3,119,000)

5100-311-0690--For capital outlay, Employment Development
Department. To prevent the loss of funds in the Employment
Development Department Building Funds, the unencumbered balances
of the funds deposited in the Employment Development Department
Building Fund shall be transferred to the Federal Unemployment Fund.


Provisions:

1. The Employment Development Department shall report to the
Legislature by September 1, 1999, the amount of funds transferred
pursuant to this item.

5160-001-0001--For support of Department of Rehabilitation  . . .

43,040,000 
 43,662,000 

Schedule:

(a) 10-Vocational Rehabilitation Services  . . .  284,572,000

 286,639,000 

(b) 20-Habilitation Services  . . . 2,591,000

(c) 30-Support of Community Facilities  . . .  6,272,000

 6,454,000 

(d) 40.01-Administration  . . . 20,494,000

(e) 40.02-Distributed Administration  . . . -20,494,000

(f) Reimbursements  . . . -7,035,000

(g) Amount payable from the Federal Trust Fund (Item 5160-0010890)
. . .  -240,000,000 
 -241,627,000  

(h) Amount payable from the Vending Stands Account Special
Deposit Fund, pursuant to Section 16370 of the Government Code)
. . . -3,360,000  

(i) Amount payable from the Vending Stand Account (Item
5160-001-0600)  . . . -3,360,000 

Provisions:

1. In order to participate in the County Mental Health Cooperative
Programs, a county shall identify, in its joint proposal with a local

office of the Department of Rehabilitation, cash and in-kind
resources
it shall make available for prevocational and other services to
supplement vocational rehabilitation resources.

2. Upon order of the Director of Finance, the Controller shall
transfer
such funds as are necessary between this item and Item
4300-101-0001 to provide for the transportation costs to and from
work activity programs of clients who are receiving vocational
rehabilitation services through the Vocational Rehabilitation/Work
Activity Program (VR/WAP) Transition program.

3. The Department of Rehabilitation shall review the process for
providing modified vehicles to vocational rehabilitation clients and
shall eliminate redundant authorization requirements. The department
shall adopt policies to ensure that counselors are informed about
their
role in the process and to increase the number of driving evaluators
who are qualified to make van assessments. Future minivan purchases
shall be made as needed, unless the department determines that a
fleet
purchase is the most cost-effective option.

  The department shall report to the Legislature on or before January

1, 1999, on the feasibility and desirability of implementing
longer-term
changes to the van purchase and modification system, including, but
not limited to, the use of up-front loans and grants and allowing
clients
to assume more control of the process.

 4. The department shall maximize its use of certified time as a

match for federal vocational rehabilitation funds. To the extent that

certified time is available, it shall be used in lieu of the General
Fund
moneys.

5. Of the funds appropriated by this item, $182,000 shall be used to
fund community organizing projects. General Fund moneys shall be
available only if federal funds are not available for these projects.


5160-001-0600--For support of Department of Rehabilitation, for
payment to Item 5160-001-0001, payable from the Vending Stand
Account  . . . 3,360,000 

5160-001-0890--For support of Department of Rehabilitation, for
payment to Item 5160-001-0001, payable from the Federal Trust Fund
. . .  240,000,000 
 241,627,000 

Provisions:

1. The amount appropriated by this item that is payable from federal

Social Security Act funds for vocational rehabilitation services for
SSI/SSDI recipients shall be expended only to the extent that funds
received exceed the amount appropriated by Item 5160-101-0890 that
is payable from the federal Social Security Act funds. It is the
intent
of the Legislature that first priority of federal Social Security Act

funding be given to Independent Living Centers in the amount of
federal Social Security Act funding appropriated by Item
5160-101-0890.

5160-101-0001--For local assistance, Department of Rehabilitation  .

. .  92,975,000 
 87,696,000 

Schedule:

(a) 10-Vocational Rehabilitation Services  . . . 487,000

(b) 20-Habilitation Services  . . .  90,241,000 
 84,962,000 

(c) 30-Support of Community Facilities  . . . 9,737,000

(d) Amount payable from Federal Trust Fund (Item 5160-101-0890)
. . . -7,490,000

Provisions:

1. Upon order of the Director of Finance, the Controller shall
transfer
funds as are necessary between this item and Item 5160-001-0001 to
provide the state's share of client service expenditures for
habilitation
clients who are eligible to become vocational rehabilitation clients.


5160-101-0890--For local assistance, Department of Rehabilitation,
for
payment to Item 5160-101-0001, payable from the Federal Trust Fund
. . . 7,490,000

5170-001-0001--For support of State Independent Living Advisory
Council  . . . 0

Schedule:

(a) 10 State Council Services  . . . 419,000

(b) Reimbursements  . . . -419,000

5180-001-0001--For support of Department of Social Services  . . .
 81,542,000 
 100,513,000 

Schedule:

(a) 16-Welfare Programs  . . .  81,135,000 
 83,333,000 

(b) 25-Social Services and Licensing  . . .  108,792,000

 129,454,000 

(c) 35-Disability Evaluation and Other Services  . . . 
186,532,000

 187,803,000 

(d) 60.01-Administration  . . . 35,635,000

(e) 60.02-Distributed Administration  . . . -35,635,000

(ex) 65-Disaster Relief  . . . 10,421,000

(f) Reimbursements  . . . -12,792,000

(g) Amount payable from Foster Family Home and Small Family
Home Insurance Fund (Item 5180-001-0131)  . . . -1,503,000

(h) Amount payable from the Federal Trust Fund (Item 5180-0010890)
. . .  -291,043,000 
 -296,203,000 

Provisions:

1. The Department of Finance may authorize the transfer of funds
from Schedule (b) of this item to Schedule (c), Program 25.45, of
Item
5180-151-0001, Community Care Licensing, in order to allow counties
to perform the facilities evaluation function.

2. The Department of Finance may authorize the transfer of funds
from Schedule (b) of this item to Schedule (a)(2), Program 25.25.020,

of Item 5180-151-0001, Adoptions, in order to allow counties to
perform the adoption programs function.

3. Nonfederal funds appropriated by this item which have been
budgeted to meet the state's Temporary Assistance for Needy Families
maintenance-of-effort requirement established pursuant to the federal

Personal Responsibility and Work Opportunity Reconciliation Act of
1996 (P.L. 104-193) may not be expended in any way that would
cause their disqualification as a federally allowable
maintenance-of-effort expenditure.

4. The $4,000,000 appropriated in this item for the Emergency Food

       Assistance Program (EFAP) shall be allocated as follows: (a)
80
percent for purchase of nonperishable food staples and (b) 20 percent

for storage and distribution of EFAP food, out of which 80 percent
shall be allocated for local program operations and 20 percent shall
be
allocated for state-level statewide and regional operations.
 

4. Of the amount appropriated by this item, $3,430,000 shall be
available for local food bank programs to purchase food, expand
refrigeration space, purchase vehicles or other equipment that will
be
directly used for the purchase, delivery, or distribution of food
products or for other uses that will allow food banks to increase the

amount of food they can receive and distribute. A request for
allocation shall be developed by the Department of Social Services in

consultation with the Emergency Food Assistance Advisory Board.
Further, $2,260,000 shall be distributed to local food distribution
programs and $260,000 shall be distributed to regional programs for
the purchase of food or to aid in the collection of donated food. The

sum of $50,000 shall be available for the purposes of convening
Emergency Food Assistance Technical Assistance and Training
sessions. 

5. The State Department of Social Services shall report to the
chairpersons of the fiscal committees of each house of the
Legislature
no later than February 1, 1999, and annually thereafter, on the
increase
in productivity by the Disability Evaluation Division as a result of
the
augmentation provided in this item. 

6. Positions for the Disability Evaluation Division that are
supported
by federal funds shall be eliminated if the State Department of
Social
Services determines that sufficient federal funds will not be
available
to fund those positions.

7. Positions for the federal Title IV-E Child Welfare Waiver
Demonstration Project that are supported by federal funds shall be
eliminated if the State Department of Social Services determines that

sufficient federal funds will not be available to fund those
positions.

8. The State Department of Social Services shall provide information
on the implementation of the California Food Assistance Program
(CFAP) to the appropriate Senate and Assembly budget
subcommittees during the spring 1999 budget subcommittee hearings.
This information shall include, but not be limited to, the estimated
number of persons receiving CFAP benefits, the number of CFAP
recipients also participating in CalWORKS, the number of CFAP
recipients in nonsubsidized and subsidized employment, and the range
of hours required by each county for program administration. 

5180-001-0131--For support of Department of Social Services, for
payment to Item 5180-001-0001, for claims payments and the
operation and maintenance of the Foster Family Home and Small
Family Home Insurance Fund  . . . 1,503,000

Provisions:

1. The Department of Finance is authorized to approve expenditures
from the unexpended balance available from prior years'
appropriations in the Foster Family Home and Small Family Home
Insurance Fund during the 1998-99 fiscal year, in those amounts made
necessary by increases in either the payment of claims or the costs
of
operating and maintaining the Foster Family Home and Small Family
Home Insurance Fund, which are within or in excess of amounts
appropriated in this act for that year.

  If the Department of Finance determines that the estimate of
expenditures will exceed the expenditures authorized for the 1998-99
fiscal year, the department shall notify the Legislature. Upon
notification the amount of the limitation for the 1998-99 fiscal year

shall be increased by the amount of such excess from the unexpended
balance available from prior years' appropriations in the Foster
Family
Home and Small Family Home Insurance Fund.

5180-001-0270--For support of Department of Social Services,
payable from the Technical Assistance Fund  . . .  1,347,000

 1,474,000 

5180-001-0271--For support of Department of Social Services,
payable from the Certification Fund  . . .  665,000 

 1,372,000 

5180-001-0279--For support of Department of Social Services,
payable from the Child Health and Safety Fund  . . . 331,000

5180-001-0890--For support of Department of Social Services, for
payment to Item 5180-001-0001, payable from the Federal Trust Fund
. . .  291,043,000 
 296,203,000 

Provisions:

1. The Department of Finance may authorize the transfer of federal
funds from this item to Item 5180-151-0890 in order to allow counties

to perform the adoptions program functions, and the facilities
evaluation function in Community Care Licensing in the Department
of Social Services.

 2. Provisions 6 and 7 of Item 5180-001-0001 shall also apply to

this item. 

5180-002-0001--For support of Department of Social Services  . . .
 18,495,000 
 18,500,000 

Schedule:

(a) 16-Welfare Programs  . . .  65,233,000 
 65,577,000 

(b) Reimbursements  . . . -122,000

(c) Amount payable from the Federal Trust Fund (Item 5180-0020890)
. . .  -46,616,000 
 -46,955,000 

Provisions:

1. Funds in this item shall be used for contracts and interagency
agreements in the child support program, unless otherwise authorized
by the Department of Finance no sooner than 30 days after providing
notification in writing to the chairperson of the fiscal committee of

each house of the Legislature and the Chairperson of the Joint
Legislative Budget Committee, or no sooner than such lesser time as
the chairperson of the committee, or his or her designee, may in each

instance determine.

5180-002-0890--For support of Department of Social Services, for
payment to Item 5180-002-0001, payable from the Federal Trust Fund
. . .  46,616,000 
 46,955,000 

Provisions:

1. Provision 1 of Item 5180-002-0001 also applies to this item.

5180-011-0001--For support of Department of Social Services, for
transfer to the Foster Family Home and Small Family Home Insurance
Fund  . . . 1,019,000

Provisions:

1. Provision 1 of Item 5180-001-0131 also applies to this item.

5180-011-0890--For support of Department of Social Services, for
transfer to the Foster Family Home and Small Family Home Insurance
Fund  . . . 484,000

Provisions:

1. Provision 1 of Item 5180-001-0131 also applies to this item.

5180-101-0001--For local assistance, Department of  Social Services
. . .  2,471,503,000 
 2,518,667,000 

Schedule:

(a) 16.30-CalWORKs  . . .  5,575,184,000 
 5,568,477,000 

(1) 16.30.010-Assistance Pay- ments  . . .  3,368,430,000

 3,367,043,000 

(2) 16.30.020-Ser- vices  . . .  1,049,034,000 
 1,115,933,000 

(3) 16.30.030-Administration  . . .  458,433,000 
 459,778,000 

(4) 16.30.040-Child Care  . . .  497,874,000 
 424,310,000 

(5) 16.30.050-County Probation Facilities  . . . 201,413,000

(b) 16.40-Foster Care  . . .  945,295,000 
 999,530,000 

(c) 16.45-Non-Assistance Child Support Incentives  . . . 139,496,000

(d) 16.50-Adoption Assistance Program  . . . 172,630,000

(e) 16.55-Refugee Cash Assistance  . . . 4,878,000

(f) 16.60-Food Stamps  . . .  130,755,000 
 87,389,000 

(g) Reimbursements  . . . -8,735,000

(h) Amount payable from the Federal Trust Fund (Item 5180-1010890)
. . .  -4,488,000,000 
 -4,444,998,000 

Provisions:

  1. No funds appropriated by this item shall be encumbered unless
every rule or regulation adopted and every all-county letter issued
by
the Department of Social Services that adds to the cost of any
welfare
program is approved by the Department of Finance as to the
availability of funds before it becomes effective. In making the
determination as to availability of funds to meet the expenditures of
a
rule, regulation, or all-county letter that would increase the costs
of a
welfare program, the Department of Finance shall consider the amount
of the proposed increase on an annualized basis, the effect the
change
would have on the expenditure limitations for the program set forth
in
this act, the extent to which the rule, regulation, or all-county
letter
constitutes a deviation from the premises under which the expenditure

limitations were prepared, and any additional factors relating to the

fiscal integrity of the program or the state's fiscal situation.

  Notwithstanding Control Sections 27.00, 28.00 and 28.50 of this
act,
the availability of funds contained in this item for welfare rules,
regulations, or all-county letters that add to program costs funded
from
the General Fund in excess of $500,000 on an annual basis, including
those that are the result of a federal regulation but excluding those
that
are (a) specifically required as a result of the enactment of a
federal or
state law, or (b) included in the appropriation made by this act,
shall
not be approved by the Department of Finance sooner than 30 days
after notification in writing of the necessity therefor to the
chairperson
of the committee in each house that considers appropriations and the
Chairperson of the Joint Legislative Budget Committee, or such lesser

time as the chairperson of the committee, or his or her designee, may

in each instance determine.

  Funds appropriated in this item are for welfare programs consisting

of state and federal statutory law, regulations, and court decisions,
if
funds necessary to carry out those decisions are specifically
appropriated in this act.

  For purposes of this provision, "welfare" means those program
elements under Welfare Programs as identified in the Governor's
Budget.

2. Notwithstanding Chapter 1 (commencing with Section 18000) of
Part 6 of Division 9 of the Welfare and Institutions Code, a loan not
to
exceed $500,000,000 shall be made available from the General Fund,
from funds not otherwise appropriated, to cover the federal share of
costs of a program(s) when the federal funds have not been received
by this state prior to the usual time for transmitting that federal
share
to the counties of this state. This loan from the General Fund shall
be
repaid when the federal share of costs for the program or programs
becomes available.

3. The Department of Finance may authorize the transfer of amounts
from this item to Item 5180-001-0001 in order to fund the cost of the

administrative hearing process associated with changes in aid
payments in the CalWORKs program.

4. The Department of Finance is authorized to approve expenditures
in those amounts made necessary by changes in either caseload or
payments, or any rule or regulation adopted and any all-county letter

issued as a result of the enactment of a federal or state law, the
adoption of a federal regulation, or the following of a court
decision,
during the 1998-99 fiscal year that are within or in excess of
amounts
appropriated in this act for that year.

  If the Department of Finance determines that the estimate of
expenditures will exceed the expenditures authorized for this item,
the
department shall so report to the Legislature. At the time as the
report
is made, the amount of the limitation shall be increased by the
amount
of the excess unless and until otherwise provided by law.

5. The Department of Finance may authorize the transfer of amounts
among the subschedules in Schedule (a) and from Schedule (b) to Item
5180-141-0001 (a), Program 16.80, County Administration to
reimburse counties for overpayment recovery activities pursuant to
Section 11487.5 of Welfare and Institutions Code.

6. The Department of Finance may authorize the transfer of funds, in

an amount not to exceed $26,619,000, from this item to Schedule
(a)(1) of Item 5180-151-0001, Child Welfare Services, in order to
advance funds to participating counties to conduct a program of
family
reunification and family maintenance services pursuant to Sections
16500.5 and 16500.55 of the Welfare and Institutions Code.

7. Notwithstanding Section 26.00 of this act, the CalWORKs funding
for counties under Schedule (a)(2), 16.30.020--Services; Schedule
(a)(3), 16.30.030--Administration; and Schedule (a)(4),
16.30.040--Child Care shall be made as a single allocation pursuant
to
Section 15204.2 of the Welfare and Institutions Code, except as
otherwise provided by Sections 10553.2 and 15204.8. During fiscal
year 1998-99, the Department of Social Services may retain up to ten
percent of the funds to be allocated pursuant to Sections 10553.2,
15204.2 and 10204.8 of the Welfare and Institutions Code for the
purpose of augmenting local allocations based upon actual
expenditures, but the department shall fully allocate those funds by
June 30, 1999.

8. Of the funds appropriated by this item for CalWORKs Services,
Administration, and Child Care, any funds that remain unexpended in
the 1998-99 fiscal year shall be available for reappropriation by the

Legislature for the 1999-2000 fiscal year for the CalWORKs program.

9. The Department of Finance may authorize the establishment of
positions and transfer of amounts from this item to Item
5180-001-0001, Program 25.45--Community Care Licensing, as
necessary, to fund the cost of increased Trustline Services resulting

from the CalWORKs child care program.

10. Non-federal funds appropriated by this item which have been
budgeted to meet the state's Temporary Assistance for Needy Families
maintenance-of-effort requirement established pursuant to the federal

Personal Responsibility and Work Opportunity Reconciliation Act of
1996 (P.L. 104-193) may not be expended in any way that would
cause their disqualification as a federally allowable
maintenance-of-effort expenditure.

11. In the event of declared disaster and upon county request, the
State
Department of Social Services may act in the place of any county and
assume direct responsibility for the administration of eligibility
and
grant determination. Upon recommendation of the Department of
Social Services, the Department of Finance may authorize the transfer

of funds from Items 5180-101-0001 and 5180-101-0890, to Items
5180-001-0001 and 5180-001-0890, for this purpose.

12. The Department of Finance may authorize the transfer of funds
from this item to Item 5180-001-0001 to fulfill the requirements of
the
settlement reached by the parties after the decision in Beno v.
Shalala,
30 F. 3d 1057.

 13. The State Department of Social Services and the State
Department of Education shall submit a proposed family fee schedule
for subsidized child care to the chairs of the fiscal committees and
policy committees of each house of the Legislature no later than
December 15, 1998, for the purpose of adopting authorizing
legislation. No family fee schedule may be implemented without
subsequent authorizing legislation.

14. Of the amount appropriated in this item, up to $5,000,000 of
General Fund moneys for county fiscal incentive payments may be
used by counties to match funds made available through the California

Conservation Corps (CCC) for CCC employment services. 

5180-101-0890--For local assistance, Department of Social Services,
for payment to Item 5180-101-0001, payable from the Federal Trust
Fund  . . .  4,488,000,000 
 4,444,998,000 

Provisions:

1. Provisions 1, 4, 5 and 7 through 9 and 11 of Item 5180-101-0001
also apply to this item.

2. The Department of Finance may authorize the transfer of amounts
from this item to Item 5180-001-0890 in order to fund the cost of the

administrative hearing process associated with changes in aid
payments in the CalWORKs program.

3. The Department of Finance may authorize the transfer of funds, in
an amount not to exceed $4,002,000, from this item to Item
5180-151-0890, Child Welfare Services, in order to advance funds to
participating counties to conduct a program of family reunification
and
family maintenance services pursuant to Sections 16500.5 and
16500.55 of the Welfare and Institutions Code.

4. Of the funds appropriated in this item,  $3,627,000
 
$1,878,000   shall be transferred to Item 5100-001-0870 for
expenditure by the Employment Development Department for
augmentation of the Job Identification System.

5. It is the intent of the Legislature that  $20,000,000
 
$10,000,000   of the funds appropriated by this item for
CalWORKs program services shall be used to fund transportation
services for CalWORKs participants. County welfare departments
shall be required to collaborate with local and regional
transportation
agencies regarding the use of these funds.  The State Department
of Social Services shall allocate these funds to counties based on
applications by the counties, taking into consideration the applicant'
s
ability to leverage additional funding, such as the federal Job
Access
and Reverse Commute grants. Of the $10,000,000, no more than
$7,500,000 may be allocated to counties in urban areas and no more
than $2,500,000 may be allocated to counties in rural areas. The
department shall report to the Legislature by April 15, 1999, on the
manner in which the funds have been expended.

6. The Department of Finance may approve expenditures of
Temporary Assistance for Needy Families funds up to a total of
$166,000,000 not sooner than 30 days after providing notification in
writing of the necessity therefor to the chairperson of the committee

of each house that considers appropriations and the Chairperson of
the
Joint Legislative Budget Committee. These funds shall only be used
for the purposes of augmenting county allocations for the CalWORKs
program. The State Department of Social Services shall develop
criteria and implement procedures for counties to request additional
allocations and to ensure timely receipt of the augmentations upon
approval of the Department of Finance. 

5180-102-0001--For local assistance, Department of Social Services
. . .  30,209,000 
 10,209,000 

Schedule:

(a) 16.30.020-CalWORKs Services  . . .  30,209,000 
 10,209,000 

Provisions:

1. This appropriation shall be used to match federal Welfare-to-Work
grant funds appropriated to the Employment Development
Department. Notwithstanding Section 15204.2 of the Welfare and
Institutions Code, these funds shall be separately allocated to the
counties and expended in a manner which meets the federal
Welfare-to-Work grant matching requirements.

5180-111-0001--For local assistance, Department of Social Services
. . .  2,748,293,000 
 2,651,793,000 

Schedule:

(a) 16.70-SSI/SSP  . . .  2,249,112,000 
 2,181,812,000 

(b) 25.15-IHSS  . . .  1,418,786,000 
 1,418,541,000 

(1) 25.15.010-Services  . . .  1,296,270,000 
 1,296,025,000 

(2) 25.15.020-Administration  . . . 122,516,000

(c) Reimbursements  . . .  -819,280,000 
 -848,235,000 

(d) Amount payable from the Federal Trust Fund (Item 5180-1110890)
. . . -100,325,000

Provisions:

1. Provisions 1 and 4 of Item 5180-101-0001 also apply to this item.


2. The Department of Finance may authorize the transfer of funds
from this item to Item 5180-001-0001 in order to fund the cost of the

administrative hearing process associated with federal law changes in

SSI/SSP. The Department of Finance shall transfer funds pursuant to
this provision no sooner than 30 days after providing notification in

writing to the chairperson of the fiscal committee of each house of
the
Legislature and the Chairperson of the Joint Legislative Budget
Committee, or no sooner than such lesser time as the chairperson of
the committee, or his or her designee, may in each instance
determine.

3. Notwithstanding Chapter 1 (commencing with Section 18000) of
Part 6 of Division 9 of the Welfare and Institutions Code, a loan not
to
exceed $88,000,000 shall be made available from the General Fund
from funds not otherwise appropriated, to cover the federal share of
costs of a program(s) when the federal funds have not been received
by this state prior to the usual time for transmitting that federal
share
to the counties of this state. That loan from the General Fund shall
be
repaid when the federal share of costs for the program(s) becomes
available.

4. The Department of Finance may authorize the transfer of amounts
between this item and Item 5180-151-0001 in order to reflect
modifications in the use of federal Title XX funds. The funds shall
not
be approved sooner than 30 days after notification in writing of the
necessity therefor to the chairperson of the committee in each house
that considers appropriations and the Chairperson of the Joint
Legislative Budget Committee, or such lesser time as the chairpersons

of the committees, or their designees, may in each instance jointly
determine.

5. The State Department of Health Services shall, by September 30,
1998, submit to the Secretary of Health and Human Services an
amendment to the State Medicaid Plan to extend coverage of personal
care services to Medi-Cal "medically needy" individuals. The
department and the State Department of Social Services shall develop
as expeditiously as possible the administrative procedures that will
allow "income eligibles" in the In-Home Supportive Services Program
(IHSS), who are not otherwise excluded under Title XIX of the Social
Security Act, to receive services under the IHSS Personal Care
Services Program. 

6. Of the funds appropriated in this item, $7,400,000 shall be to
fund
the state and local administrative costs associated with implementing

the state assistance program for legal immigrants, and the Department

of Finance may authorize transfers from that amount to, and in
augmentation of, Item 5180-001-0001 to the extent necessary for the
state operations portion of those administrative costs. The
Department
of Finance shall, within 30 days of making a transfer under this
provision, notify the chairperson of the committee in each house that

considers appropriations and the Chairperson of the Joint Legislative

Budget Committee. 

5180-111-0551--For transfer by the Controller from the Temporary
Assistance for Needy Families Fund to the Federal Trust Fund  . . .
 (4,299,404,000) 
 (4,406,217,000) 

Provisions:

1. Transfers made pursuant to this item may be for state operations
and local assistance expenses eligible for funding through the
federal
Temporary Assistance for Needy Families block grant established
pursuant to the federal Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 (P.L. 104-193).

2. No transfer of funds exceeding $1,000,000,000 in any quarter of
the
fiscal year quarter may be made  pursuant to this item except with
the
prior approval of the Director of Finance. 

3. Of the funds appropriated for transfer in this item, $183,000,000
is
reserved for CalWORKs Child Care. This amount may be transferred
to the federal Social Services Block Grant program (Title XX)
pursuant to authorization in the federal Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 (Public Law 104-193),
upon approval by the Department of Finance, for the purpose of
funding child care services pursuant to Chapter 270, Statutes of
1997.
Notwithstanding any other provision of this act, the Director of
Finance is authorized to approve transfers from the funding reserve
in
this item for transfer to and in augmentation of the amount
appropriated in Item 5180-101-0890, Program 16.30.040, CalWORKs
Child Care, for expenditure by the State Department of Social
Services
and to Item 5180-112-0551 which shall be received by the California
Department of Education as an augmentation, to be used for
CalWORKs Child Care. The Department of Finance shall provide
written notification to the chairperson of the fiscal committee of
each
house of the Legislature and the Chairperson of the Joint Legislative

Budget Committee at the time the transfer is approved by the
Department of Finance.

4. Provision (6) of Item 5180-101-0890 also applies to this item.


5180-111-0890--For local assistance, Department of Social Services
for payment to Item 5180-111-0001, payable from the Federal Trust
Fund  . . . 100,325,000

Provisions:

1. The Department of Finance may authorize the transfer of amounts
between this item and Item 5180-151-0890, in order to reflect
modifications in the use of federal Title XX funds. The funds shall
not
be approved sooner than 30 days after notification in writing of the
necessity therefor to the chairperson of the committee in each house
that considers appropriations and the Chairperson of the Joint
Legislative Budget Committee, or such lesser time as the chairpersons

of the committees, or their designees, may in each instance jointly
determine. 

5180-112-0551--For transfer by the Controller from the federal
Temporary Assistance for Needy Families Fund to the Federal Trust
Fund  . . . (0)

Provisions:

1. Pursuant to authorization in the federal Personal Responsibility
and
Work Opportunity Reconciliation Act of 1996 (Public Law 104-193),
the amount of this item shall be transferred from the federal
Temporary Assistance for Needy Families (TANF) Block Grant to the
federal Social Services Block Grant (Title XX) and the entire sum
shall be received by the State Department of Education as an
augmentation to be used for CalWORKs local assistance child care.


5180-113-0551--For transfer by the Controller from the federal
Temporary Assistance for Needy Families Fund to the Federal Trust
                                                     Fund  . . .
 (208,000,000) 
 (100,000,000) 

Provisions:

1. Pursuant to authorization contained in the federal Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
(Public Law 104-193), the amount in this item shall be transferred
from the federal Temporary Assistance for Needy Families (TANF)
Block Grant to the federal Child Care and Development Block Grant
(CCDBG) administered by the State Department of Education, and
this entire sum shall be used for CalWORKs local assistance child
care.

5180-141-0001--For local assistance, Department of Social Services
. . .  302,430,000 
 304,297,000 

Schedule:

(a) 16.80-County Administration  . . .  1,057,270,000

 1,070,398,000 

(b) 16.85-Automation Projects  . . .  82,256,000 
 82,784,000 

(c) Reimbursements  . . . -9,082,000

(d) Amount payable from the Federal Trust Fund (Item 5180-1410890)
. . .  -828,014,000 
 -839,803,000 

Provisions:

1. Notwithstanding Chapter 1 (commencing with Section 18000) of
Part 6 of Division 9 of the Welfare and Institutions Code, a loan not
to
exceed $127,000,000 shall be made available from the General Fund,
from funds not otherwise appropriated, to cover the federal share of
costs of a program(s) when the federal funds have not been received
by this state prior to the usual time for transmitting that federal
share
to the counties of this state. This loan from the General Fund shall
be
repaid when the federal share of costs for the program or programs
becomes available.

2. In the event of declared disaster and upon county request, the
State
Department of Social Services may act in the place of any county and
assume direct responsibility for the administration of eligibility
and
grant determination. Upon recommendation of the Director of Social
Services, the Department of Finance may authorize the transfer of
funds from Items 5180-141-0001 and 5180-141-0890, to Items
5180-001-0001 and 5180-001-0890, for this purpose.

3. Provision 1 of Item 5180-101-0001 also applies to this item.

4. Pursuant to public assistance caseload estimates reflected in the
annual Governor's Budget, the Department of Finance may approve
expenditures in those amounts made necessary by changes in caseload
that are in excess of amounts appropriated in this act. If the
Department of Finance determines that the estimate of expenditures
will exceed the expenditures authorized for this item, the department

shall so report to the Legislature. At the time the report is made,
the
amount of the limitation shall be increased by the amount of the
excess
unless and until otherwise provided by law.

5. The Department of Finance may augment the funds appropriated in
this item to make allocations to fund county plans that are approved
by
the State Department of Social Services under Section 15200.6 of the
Welfare and Institutions Code.

6. Notwithstanding any other provision of law, of the funds
appropriated by this item in Program 16.85, an amount not to exceed
$2,404,000 is available to the counties as a loan in fiscal year
1998-99
for the nonfederal share of the operations and maintenance cost of
the
Statewide Automated Child Support System (SACSS) not eligible for
enhanced federal funding. The total

ASSEMBLY BILL NO. 1656

AS AMENDED IN CONFERENCE AUGUST 10, 1998

VOLUME 2

  outstanding loan amount, inclusive of loans made pursuant to
Provision 1 of Item 5180-141-0001 of Section 2.00 of the Budget Act
of 1996, and Provision 17 of Item 5180-141-0001 of Section 2.00 of
the Budget Act of 1997 may not exceed $6,644,028 over three fiscal
years. This loan does not constitute a shift in financial
responsibility
for any portion of the Child Support Enforcement program as defined
by Chapter 4.1 (commencing with Section 10815) of Part 2, and
Chapter 9 (commencing with Section 15200) of Part 3 of Division 9
of the Welfare and Institutions Code. Loan repayment may begin at the

time as agreed upon between the state and each individual county, but

in any case no later than upon full statewide implementation of a
statewide automated child support system and shall be repaid as a
deduction from respective counties' incentive payments for a period
not to exceed 24 months. If the loan is repaid within the 24 months,
the state shall forgive 29.4 percent of the funds loaned.

7. Nonfederal funds appropriated by this item which have been
budgeted to meet the state's Temporary Assistance for Needy Families
maintenance-of-effort requirement established pursuant to the federal

Personal Responsibility and Work Opportunity Reconciliation Act of
1996 (P.L. 104-193) may not be expended in any way that would
cause their disqualification as a federally allowable
maintenance-of-effort expenditure. 

8. Of the amount appropriated by this item, $3,996,000 shall be
allocated only upon the direction of the Director of Finance to
offset
losses of federal funds resulting from a reduction in federal funding
for
food stamps administration pursuant to Public Law 105-185. 

5180-141-0890--For local assistance, Department of Social Services,
for payment to Item 5180-141-0001, payable from the Federal Trust
Fund  . . .  828,014,000 
 839,803,000 

Provisions:

1. Provisions 1 to 5, inclusive, of Item 5180-141-0001 also apply to

this item.

5180-151-0001--For local assistance, Department of Social Services
. . .  710,632,000 
 690,969,000 

Schedule:

(a) 25.25-Children's Services  . . .  1,263,145,000 

 1,301,308,000 

(1) 25.25.010-Child Welfare Ser- vices  . . .  1,173,237,000

 1,211,400,000 

(2) 25.25.020-Adop- tions  . . . 60,282,000

(3) 25.25.030-Child  Abuse Prevention  . . . 29,626,000

(b) 25.35-Special Programs  . . .  143,254,000 
 164,511,000 

(1) 25.35.010-Special- ized Services  . . . 8,851,000

(2) 25.35.020-Access  Assistance for the  Deaf  . . . 
5,304,000

 5,804,000 

(3) 25.35.030-Mater- nity Care  . . . 600,000

(4) 20.35.040-Refugee Assistance Ser- vices  . . . 27,000,000

(5) 20.35.050-County Services Block  Grant  . . . 
101,499,000

 122,256,000 

(c) 25.45-Community Care Licensing  . . .  14,879,000

 15,158,000 

(d) Reimbursements  . . .  -42,368,000 
 -80,725,000 

(e) Amount payable from the Child Health and Safety Fund (Item
5180-151-0279)  . . . -151,000

(f) Amount payable from the Federal Trust Fund (Item 5180-1510890)
. . .  -668,127,000 
 -709,132,000 

Provisions:

1. The funds appropriated by this item are for social services
programs, for the cost of special social services programs for which
federal grants in aid are made to the state; for grants or services
to
local agencies for the extension of child welfare services as
provided
by Chapter 5 (commencing with Section 16500) of Part 4 of Division
9 of the Welfare and Institutions Code; for the cost of the adoption
programs and care of children, to be expended in accordance with
Chapter 2 (commencing with Section 16100) of Part 4 of Division 9
of the Welfare and Institutions Code; for the costs incurred by
counties, including, but not limited to, the required county funds
for
prevention of child abuse and neglect as provided by Chapter 11
(commencing with Section 18950) of Part 6 of Division 9 of the
Welfare and Institutions Code.

2. Provision 1 of Item 5180-101-0001 also applies to this item.

3. Notwithstanding Chapter 1 (commencing with Section 18000) of
Part 6 of Division 9 of the Welfare and Institutions Code, a loan not
to
exceed $50,000,000 shall be made available from the General Fund
from funds not otherwise appropriated, to cover the federal share of
costs of a program(s) when the federal funds have not been received
by this state prior to the usual time for transmitting that federal
share
to the counties of this state. That loan from the General Fund shall
be
repaid when the federal share of costs for the program(s) becomes
available.

4. The Department of Finance may authorize the establishment of
positions and transfer of amounts from this item to Item
5180-001-0001, in order to allow the state to perform the facilities
evaluation function of Community Care Licensing in the event the
counties fail to perform that function.

5. The Department of Finance may authorize the transfer of amounts
between this item and Item 5180-111-0001 in order to reflect
modifications in the use of Title XX funds. The funds shall not be
approved sooner than 30 days after notification in writing of the
necessity therefor to the chairperson of the committee in each house
that considers appropriations and the Chairperson of the Joint
Legislative Budget Committee, or such lesser time as the chairpersons

of the committees, or their designees, may in each instance jointly
determine.

6. Nonfederal funds appropriated by this item which have been
budgeted to meet the state's Temporary Assistance for Needy Families
maintenance-of-effort requirement established pursuant to the federal

Personal Responsibility and Work Opportunity Reconciliation Act of
1996 (P.L. 104-193) may not be expended in any way that would
cause their disqualification as a federally allowable
maintenance-of-effort expenditure.

7. Of the funds appropriated in this item for the Deaf Access
Program,
 $1,000,000    $1,250,000   shall be used
to augment
existing offices and an additional  $1,000,000  

$1,250,000   shall be used to establish new  offices in
the
Cities of Santa Rosa, San Francisco, and Watsonville and the Counties

of El Dorado and Placer.    offices. 

8. The Department of Social Services shall determine the feasibility
of
including information on probation foster care placements within the
Child Welfare Services Case Management System (CWS/CMS), and
shall amend the state's federal Title IV-E plan to permit the use of
federal matching funds for staff training of private nonprofit agency

employees. 

9. The Director of Finance may authorize the establishment of
positions for, and may transfer up to $59,000 from this item to Item
5180-001-0001 to fund the cost of, state administration of the
adoption
program for drug or alcohol exposed children.

10. Of the amount appropriated in this item, $67,797,000 shall be
provided to counties to fund additional emergency response services
and shall be allocated based on child welfare services caseload and
county unit costs. However no county shall receive less than $75,000.

These funds shall be expressly targeted for emergency response
services solely for the protection of children and shall be used to
supplement, and shall not be used to supplant, child welfare services

funds. A county is not required to provide a match of the funds
received pursuant to this provision if the county appropriates the
required full match for the county's child welfare services program
exclusive of the funds received pursuant to this provision. The State

Department of Social Services shall reallocate any funds that
counties
choose not to accept under this provision, to other counties based on

the allocation formula specified in this provision. Not later than
April
1, 1999, the department shall report to the chairpersons of the
appropriate policy committees and to the fiscal committees of each
house of the Legislature that consider the state budget on the use of

these funds by counties based on a survey of counties. 

5180-151-0279--For local assistance, Department of Social Services,
for payment to 5180-151-0001, payable from the Child Health and
Safety Fund  . . . 151,000

5180-151-0890--For local assistance, Department of Social Services,
for payment to Item 5180-151-0001, payable from the Federal Trust
Fund  . . .  668,127,000 
 709,132,000 

Provisions:

1. Provisions 1, 2, 4, 5,  and 8    8, 9, and 10
  of
Item 5180-151-0001 also apply to this item. 

2. Of the funds appropriated by this item for the requirements of the

Child Abuse Prevention and Treatment Act, $350,000 shall be used to
fund the Family Maintenance Healthcare Pilot Project in the County
of Los Angeles. 

5180-490--Reappropriation, Department of Social Services.
Notwithstanding any other provision of law, the  unencumbered

 balances of the appropriations provided for in the
following
citations are reappropriated for the purposes and subject to the
limitations, unless otherwise specified, provided for in those
appropriations, and shall be available for expenditure until June 30,

1999:

0001--General Fund

(1) The balance of the $350,000 appropriation to develop a Risk
Assessment Tool (Structured Decision Making) in Program 20.43,
Child Welfare Services, Item 5180-001-0001, Budget Act of 1997, is
reappropriated for transfer to and in augmentation of Item
5180-001-0001 Program 25 of this act to support the continuing
development of the Structured Decision Making tool under Child
Welfare Services.

(2) The balances of the appropriations for Welfare-to-Work, county
administration, services, and child care in Items 5180-141-0001,
5180-151-0001, and 5180-196-0001 of the Budget Act of 1997 are
reappropriated for transfer to and in augmentation of Subschedules
(a)(2), (a)(3), or (a)(4) of Item 5180-101-0001 of this act and
administered pursuant to Provision 7 of Item 5180-101-0001. 

(3) The balance of the appropriation for child care capacity building
in
Program 20.15, Item 5180-196-0001, Budget Act of 1997 (Ch. 282,
Stats. 1997) is reappropriated for transfer to and in augmentation of

Subschedule (a)(4) of Item 5180-101-0001 of this act for purposes of
Stage One Child Care. 

(4) The balance of the $2,744,000 appropriation for
CalWORKs-related application modifications for Interim SAWS and
LEADER in Program 10.25, Automation Projects, Item
5180-141-0001, Budget Act of 1997 (Ch. 282, Stats. 1997), is
reappropriated for transfer to, and in augmentation of Program 16.85,

Item 5180-141-0001, of this act.

0890--Federal Fund

(1) The balance of the $350,000 appropriation to develop a Risk
Assessment Tool (Structured Decision Making) in Program 20.43,
Child Welfare Services, Item 5180-001-0890, Budget Act of 1997, is
reappropriated for transfer to and in augmentation of Item
5180-001-0890 Program 25 of this act to support the continuing
development of the Structured Decision Making tool under Child
Welfare Services.

(2) The balances of the appropriations for Welfare-to-Work, County
Administration, Services, and Child Care in Items 5180-141-0890,
5180-151-0890 and 5180-196-0890 of the Budget Act of 1997 are
reappropriated for transfer to and in augmentation of Item
5180-101-0890, Programs 16.30.020 or 16.30.030 or 16.30.040 of this
act.

(3) The balance of the appropriation for County Probation Facilities
in
Item 5180-101-0890 of the Budget Act of 1997 (Ch. 282, Stats. 1997)
is reappropriated for transfer to and in augmentation of Program
16.30.050, Item 5180-101-0890, of this act.

(4) The balance of the $2,744,000 appropriation for
CalWORKs-related application modifications for Interim SAWS and
LEADER in Program 10.25, Automation Projects, Item
5180-141-0890, Budget Act of 1997 (Ch. 282, Stats. 1997), is
reappropriated for transfer to, and in augmentation of Program 16.85,

Item 5180-141-0890, of this act.

                              YOUTH AND ADULT CORRECTIONAL
AGENCY

5240-001-0001--For support of the Department of Corrections  . . .
 3,546,620,000 
 3,550,781,000 

Schedule:

(a) 21-Institution Program  . . .  2,749,151,491 
 2,749,755,715 

(b) 22-Health Care Services Program  . . .  477,909,637

 472,737,555 

(c) 31-Community Correctional Program  . . .  425,861,872

 432,467,730 

(d) 41.01-Administration  . . .  137,612,890 
 127,767,000 

(e) 41.02-Distributed Administration  . . .  -137,612,890

 -127,767,000 

(f) Reimbursements  . . .  -63,448,000 
 -61,448,000 

(g) Amount payable from the Federal Trust Fund (Item
5240-001-0890)  . . . -217,000

(i) Amount payable from the Inmate Welfare Fund (Item
5240-001-0917)  . . .  -42,638,000 
 -42,515,000 

Provisions:

1. Funds appropriated to accommodate projected institutional
population levels in excess of those that actually materialize, if
any,
shall revert to the General Fund.

2. Funds appropriated to accommodate projected parole population
levels in excess of those that actually materialize, if any, shall
revert
to the General Fund.

3. Any funds recovered as a result of audits of locally operated
return-to-custody centers shall revert to the General Fund.

4. When contracting with counties for vacant jail beds for any inmate

under the jurisdiction of the Director of the Department of
Corrections, the department shall not reimburse counties more than
the
average amount it costs the state to provide the same services in
comparable state institutions. This restriction shall not apply to
any
existing contract, but shall apply to the extension or renewal of
that
contract. In addition, the total operational cost of incarcerating
state
inmates in lease county jail beds (which includes state costs, but is

exclusive of one-time and capital outlay costs), shall not exceed the

department's average cost for operating comparable institutions.

5. Notwithstanding any other provision of law, funds appropriated in
Schedule (a) for McGee Training Facility rent payments may be
transferred to Item 5240-003-0001 by the Controller, upon order of
the
Director of Finance, as necessary to provide rental payments on lease

revenue bonds for the McGee Training Facility if a bond sale occurs.


6. Notwithstanding any other provision of law, but subject to
providing
30 days' prior notification to the Joint Legislative Budget
Committee,
funds appropriated in Schedule (a) or (b), or both, of this item may
be
transferred to Item 5240-101-0001, Schedule (b), upon order of the
Director of Finance, to provide funds for the reimbursement of
counties for the cost of holding parole violators in local jail.

7. Of the funds appropriated by this item,  $2,000,000
 
$325,000   shall be expended for  Interferon 
treatment,
and related tests, for inmates infected with hepatitis B and C. Any
funds not used for these purposes shall revert to the General Fund.

8. Notwithstanding any other provision of law, upon approval of the
Department of Finance, the Department of Corrections may transfer,
between Schedules (a), (b), and (c) of this item, up to 5 percent of
the
amounts appropriated in these schedules. Any transfer of funds
appropriated in Schedules (a), (b), and (c) of this item exceeding 5
percent may occur not sooner than 30 days after notification thereof
to
the Chairperson of the Joint Legislative Budget Committee and the
chairpersons of the fiscal committees of the Legislature. 

9. The Department of Corrections shall have the authority to contract

for 5,000 Community Correctional Facility beds.

10.  

9.   Of the funds appropriated in this item,  $2,000,000

  $6,503,000   shall be expended for new drug therapies
approved by the Food and Drug Administration (FDA) for HIV, AIDS,
and other chronic diseases. Any funds not used for these purposes
shall revert to the General Fund. 

11.  

10.   No more than 5 percent of the combined overall amount of
funding provided in this item for the Preventing Parolee Failure
Program and for casework services for parolees in the 1998-99 fiscal
year shall be transferred by the Department of Corrections to other
purposes unless the department notifies the Joint Legislative Budget
Committee and the fiscal committees of both houses of the Legislature

of proposed reductions at least 30 days prior to implementation,
except
that a lesser period of advance notification may be provided in the
event of an emergency situation as determined by the Director of
Corrections. 

12. If pending litigation between the prior Correctional Management
Information System (CMIS) vendor and the state is settled, or if a
final
judgment is issued in the case, the Department of Finance, in
consultation with the Department of Corrections, shall review, within

60 days of the signing of any settlement agreement or the issuance of

judgment by a court, the expenditures for staff and other expenses
for
CMIS litigation activity that have occurred in the 1998-99 fiscal
year.
In the event that there is no settlement or final judgment in the
case,
the Department of Finance shall review expenditures for CMIS
litigation at the conclusion of the 1998-99 fiscal year. Upon the
completion of the review, any surplus funding appropriated in this
item for CMIS litigation activity, as determined by the Department of

Finance, shall revert to the General Fund. The Department of Finance
shall report its determination in regard to surplus CMIS litigation
funding to the Joint Legislative Budget Committee and the fiscal
committees of each house of the Legislature.  

13.   

11.   Of the reimbursements in Schedule (f), $250,000 shall be
from funds received from the Prison Industry Authority to provide a
match to the General Fund for the purpose of funding a two-year
study of inmate work incentive programs as described in the
Supplemental Report of the 1998 Budget Act. 

14.   

12.   The number of Department of Corrections positions
assigned, or proposed to be assigned, to Patton State Hospital shall
not
be reduced, transferred, or redirected to any other institution of
the
Department of Corrections, without prior 30-day notification to the
Joint Legislative Budget Committee. 

13. The Department of Finance, in consultation with the Prison
Industry Authority (PIA) and the Legislative Analyst's Office, shall
develop a display in the 1999-2000 Governor's Budget of projected
expenditures and revenues for the PIA, the Prison Industry Board, and

the Prison Industries Revolving Fund.

14. Of the amount appropriated in this item, up to $100,000 shall be
available for the removal of tattoos from inmates who are nearing
successful completion of the Transitional Housing Unit at Pelican Bay

State Prison. These funds may be used for the purchase of no more
than one tattoo removal machine with the remaining balance only
available to contract for in-prison tattoo removal services with an
appropriately licensed or certified dermatologist.

15. The Department of Corrections shall redirect $257,000 of the
moneys appropriated by this item for the purpose of ensuring
departmental compliance with Title 1 of the Americans with
Disabilities Act of 1990 (42 U.S.C., Ch. 126, Subch. I).

16. Of the amount appropriated by this item, $5,000,000 shall be
available only for (1) an additional 1,000 beds of therapeutic drug
treatment programming, including availability of aftercare treatment
of not less than 120 days for 50 percent of the in-prison program
graduates from the new beds, and (2) support for a minimum of 120
days of aftercare treatment for 50 percent of the in-prison program
graduates from existing drug treatment beds. The additional
therapeutic drug treatment programming authorized by this provision
shall be in accordance with protocols established by the Department
of Corrections.

17. Any funds identified by the Department of Corrections (CDC), in
this or any other item in Section 2.00 of this act, for expenditure
for
the development of a Corrections Management Information System
(CMIS) project may not be expended until a feasibility study report,
prepared in accordance with existing provisions of law and the State
Administrative Manual, has been completed and approved by the
Department of Finance and the Department of Information
Technology, and only if the final approved feasibility study report
does
not significantly change the scope of the project from the
feasibility
study report submitted to the two agencies by CDC.

18. Of the amount appropriated by this item, $2,500,000 shall be
available only for additional work or educational slots, including
vocational and academic education, to reduce inmate idleness and to
provide work or vocational and academic training for up to 2,500
inmates.

19. Of the funds appropriated in this item, the sum of $1,500,000
shall
be available to develop, implement, and evaluate up to a total of two

pilot projects for a new parole model in parole Regions III and IV.
These funds shall be available for expenditure, not sooner than 30
days
after a report is submitted to the Chairperson of the Joint
Legislative
Budget Committee and the chairpersons of the fiscal committees of the

Legislature, that provides a specific plan to phase in operation,
funding, staffing, and evaluation of the pilot projects.

20. Of the amount appropriated in this item, $11,759,000 is provided
for merit salary adjustments and associated staff benefit increases
for
the department's growth positions pursuant to the Department of
Corrections' 1998-99 Budget Change Proposal as approved by the
Legislature, hereafter referred to in this provision as: 1998-99, BCP

Statewide
01. If it is determined that merit salary adjustment and associated
staff
benefit increase expenditures realized by the department for its
growth
positions as set forth in 1998-99, BCP Statewide
01, exceed the aforementioned funding authorized by the Legislature
                                                      relative to
1998-99, BCP Statewide
01, then the Director of Finance may propose a deficiency
appropriation pursuant to Section 27.00 of this act. 

5240-001-0890--For support of the Department of Corrections, for
payment to Item 5240-001-0001, payable from the Federal Trust Fund
. . . 217,000

5240-001-0917--For support of the Department of Corrections, for
payment to Item 5240-001-0001, payable from the Inmate Welfare
Fund  . . .  42,638,000 
 42,515,000 

5240-003-0001--For support of the Department of Corrections for
rental payments on lease revenue bonds  . . . 252,178,000

Schedule:

(a) Southern Maximum Security Complex  . . . 12,178,000

(b) Mule Creek State Prison  . . . 15,488,000

(c) California State Prison Corcoran  . . . 32,414,000

(d) Pelican Bay State Prison  . . . 27,180,000

(e) Central California Women's Facility  . . . 15,388,000

(f) Calipatria State Prison  . . . 18,412,000

(g) Centinella State Prison  . . . 19,376,000

(h) Pleasant Valley State Prison  . . . 18,940,000

(i) High Desert State Prison   . . . 24,148,000

(j) Valley State Prison  . . . 14,640,000

(k) Salinas Valley State Prison  . . . 24,144,000

(l) CSATF & SP at Corcoran II  . . . 34,986,000

(m) Emergency Bed Program  . . . 8,833,000

(n) Insurance  . . . 1,551,000

(o) Reimbursements  . . . -15,500,000 

5240-011-0678--For transfer by the Controller from the Prison
Industries Revolving Fund to the General Fund  . . . (8,000,000)


5240-101-0001--For local assistance, Department of Corrections  . . .

56,528,000

Schedule:

(a) 21-Institution Program  . . . 9,439,000

(b) 31-Community Correctional Program  . . . 47,089,000

Provisions:

1. The amount appropriated by this item is provided for the following

purposes:

a. To pay the transportation costs of prisoners to and between state
prisons, including the return of parole violators to prison and for
the
conveying of persons under provisions of Division 3 (commencing
with Section 3000) of the Welfare and Institutions Code and the
Western Interstate Corrections Compact (Section 11190 of the Penal
Code), in accordance with Section 26749 of the Government Code.
Claims filed by local jurisdictions shall be filed within six months
after
the end of the month in which those transportation costs are
incurred.
Expenditures shall be charged to either the fiscal year in which the
claim is received by the Controller or the fiscal year in which the
warrant is issued by the Controller.

  Claims filed by local jurisdictions directly with the Controller
may be
paid by the Controller.

b. To pay the expenses of returning fugitives from justice from
outside
the state, in accordance with Sections 1389, 1549, and 1557 of the
Penal Code. Claims filed by local jurisdictions shall be filed within
six
months after the end of the month in which expenses are incurred,
expenditures shall be charged to either the fiscal year in which the
claim is received by the Controller or the fiscal year in which the
warrant is issued by the Controller, and any restitution received by
the
state for those expenses shall be credited to the appropriation of
the
year in which the Controller's receipt is issued.

  Claims filed by local jurisdictions directly with the Controller
may be
paid by the Controller.

c. To pay court costs and county charges, payable under Sections
4700.1, 4750 to 4755, inclusive, and 6005 of the Penal Code. Claims
shall be filed by local jurisdictions within six months after the end
of
the month in which a service is performed by the coroner, a hearing
is
held on the return of a writ of habeas corpus, the district attorney
declines to prosecute a case referred by the Department of
Corrections,
a judgment is rendered for a court hearing or trial, an appeal ruling
is
rendered for the trial judgment, or an activity is performed as
permitted by these sections. Expenditures shall be charged to either
the
fiscal year in which the claim is received by the Controller or the
fiscal
year in which the warrant is issued by the Controller.

  Claims filed by local jurisdictions directly with the Controller
may be
paid by the Controller.

d. To reimburse counties for the cost of detaining state parolees
pursuant to Section 4016.5 of the Penal Code. Claims shall be filed
by
local jurisdictions within six months after the end of the month in
which the costs are incurred. Claims filed by local jurisdictions may

not include booking fees, may not recover detention costs in excess
of
$59 per day, and shall be limited to the detention costs for those
days
on which parolees are held subject only to a Department of
Corrections
request pursuant to subdivision (b) of Section 4016.5 of the Penal
Code. Expenditures shall be charged to either the fiscal year in
which
the claim is received by the Department of Corrections or the fiscal
year in which the warrant is issued.

2. Notwithstanding any other provision of law, upon 30-day prior
notification to the Chairperson of the Joint Legislative Budget
Committee, funds appropriated in Schedule (b) of this item may be
transferred to Schedules (a) or (b), or both, of Item 5240-001-0001,
upon order of the Director of Finance, to provide funds for the
reimbursement of counties for the cost of holding parole violators in

local jails or for the auditing or monitoring of local assistance
costs. 

5240-101-0797--For local assistance, Department of Corrections,
payable from 1998 general obligation bond funds  . . . 40,000,000

Provisions:

1. Funds appropriated in this item shall be eligible to fund the
construction or renovation of afterschool recreation program
facilities
located in prison-impacted regions of the state. These funds shall be

allocated consistent with the formula designed by a consortium of
impacted communities designated as the "New Prison Impacted
Communities." The City of Orange Cove shall be responsible for the
distribution of these funds.

2. Funds are appropriated by this item from the proceeds of any
bonds,
issued pursuant to approval by the voters at the November 3, 1998,
statewide general election, and from which the facilities described
in
Provision 1 may be funded. 

5240-301-0001--For capital outlay, Department of Corrections  . . .
 27,457,000 
 27,960,000 

Schedule:

(1) 61.01.001-Statewide: Budget Packages and Advance Planning  . .
. 400,000

(2) 61.01.713-Statewide: Electrified Fencing--Study  . . . 1,003,000

(2.2) 61.04.040-  CCI    California Correctional
Institution
 , Tehachapi: Wastewater Treatment Plant
Renovation--Preliminary plans and working drawings  . . . 808,000

(2.3) 61.04.045-  CCI    California Correctional
Institution
 , Tehachapi: New Potable Water Source--Preliminary plans,
working drawings, and construction  . . . 1,174,000

(3) 61.06.425-Deuel Vocational Institution, Tracy: Reception Center
Screening and Evaluation--Working drawings   . . . 97,000

(4) 61.07.101-Folsom State Prison, Represa: Renovate Dental
Clinic--Preliminary plans and working drawings  . . . 130,000

(5) 61.07.102-Folsom State Prison, Represa: Renovate Branch Circuit
Wiring, Building 1--Preliminary plans and working drawings  . . .
181,000

(6) 61.07.103-Folsom State Prison, Represa: Renovate Supply Heating
and Ventilation, Building 1--Preliminary plans and working drawings
. . . 134,000

(7) 61.07.104-Folsom State Prison, Represa: Renovate Branch Circuit
Wiring, Building 2--Preliminary plans and working drawings  . . .
110,000

(8) 61.07.105-Folsom State Prison, Represa: Renovate Branch Circuit
Wiring, Building 3--Preliminary plans and working drawings  . . .
138,000

(9) 61.07.106-Folsom State Prison, Represa: Gang Shower
Conversion, Building 1--Preliminary plans and working drawings  . .
. 75,000

(10) 61.07.425-California State Prison-Sacramento, Represa:
Correctional Clinical Case Management and Enhanced Outpatient
Care--Working drawings  . . . 371,000

(11) 61.08.020-California Institution for Men, Chino: PCE
Contamination Clean-up--Construction  . . . 3,128,000

(12) 61.08.024-California Institution for Men, Chino: Replace Locking

Devices, RC Central--Working drawings and construction  . . .
2,524,000

(13) 61.08.425-California Institution for Men--Central, Chino:
Correctional Clinical Case Management and Reception Center
Screening and Evaluation--Working drawings  . . . 165,000

(14) 61.08.426-California Institution for Men--East, Chino: Reception

Center Screening and Evaluation--Working drawings  . . . 11,000

(15) 61.08.427-California Institution for Men--Minimum, Chino:
Correctional Clinical Case Management--Working drawings   . . .
91,000

(15.2) 61.09.050-  CMF    California Medical
Facility
 , Vacaville: Electrified Fence--Preliminary plans  . . .
124,000

(16) 61.09.426-California State Prison-Solano, Vacaville:
Correctional
Clinical Case Management--Working drawings  . . . 94,000

(17) 61.09.427-California State Prison-Solano, Vacaville:
Correctional
Treatment Center, Phase II--Preliminary plans and working drawings
. . . 236,000

(17.1) 61.09.428-  CMF    California Medical
Facility
 , Vacaville: In-patient Care Facility--Preliminary plans,
working
drawings, and construction  . . . 1,308,000

(18) 61.10.051-California Men's Colony--West, San Luis Obispo:
Central Kitchen Replacement--Preliminary plans and working
drawings  . . . 531,000

(19) 61.11.425-Richard J. Donovan Correctional Facility, San Diego:
Correctional Clinical Case Management and Reception Center
Screening and Evaluation--Working drawings  . . . 152,000

(20) 61.12.426-California State Prison-San Quentin, San Quentin:
Correctional Treatment Center, Phase II--Preliminary plans and
working drawings  . . . 1,279,000

(21) 61.13.426-California Institution for Women, Frontera:
Correctional Clinical Case Management and Enhanced Outpatient
Care--Working drawings  . . . 127,000

(22) 61.13.427-California Institution for Women, Frontera: Reception
Center Screening and Evaluation--Working drawings  . . . 79,000

(23) 61.13.428-California Institution for Women, Frontera:
Correctional Treatment Center, Phase II--Preliminary plans and
working drawings  . . . 1,103,000

(24) 61.14.030-Minor Projects  . . . 5,500,000

(27.1) 61.15.035-California Rehabilitation Center, Norco: Replace
Men's Dormitories--Preliminary plans, working drawings, and
construction  . . .  2,036,000 
 2,539,000 

(27.2) 61.15.040-California Rehabilitation Center, Norco: Patton
State
Hospital Double Perimeter Fence--Study and preliminary plans  . . .
773,000

(28) 61.15.425-California Rehabilitation Center, Norco: Correctional
Clinical Case Management--Working drawings  . . . 87,000

(29) 61.16.021-Sierra Conservation Center, Jamestown: Effluent
Disposal Pipeline--Preliminary plans  . . . 592,000

(30) 61.17.425-Avenal State Prison, Avenal: Correctional Clinical
Case Management--Working drawings   . . . 93,000

(31) 61.18.426-Mule Creek State Prison, Ione: Correctional Clinical
Case Management and Enhanced Outpatient Care--Working drawings
. . . 321,000

(32) 61.18.427-Mule Creek State Prison, Ione: Correctional Treatment
Center, Phase II--Preliminary plans and working drawings  . . .
223,000

(33) 61.21.425-California State Prison-Los Angeles County, Lancaster:

Correctional Clinical Case Management and Enhanced Outpatient
Care--Working drawings   . . . 336,000

(34) 61.23.425-California State Prison-Corcoran, Corcoran:
Correctional Clinical Case Management and Enhanced Outpatient
Care--Working drawings  . . . 343,000

(35) 61.26.425-Central California Women's Facility, Madera:
Enhanced Outpatient Care and Reception Center Screening and
Evaluation--Working drawings   . . . 213,000

(36) 61.26.426-Central California Women's Facility, Madera:
Correctional Clinical Case Management--Working drawings   . . .
109,000

(37) 61.27.425-Wasco State Prison-Reception Center, Wasco:
Reception Center Screening and Evaluation--Working drawings   . . .
144,000

(38) 61.27.426-Wasco State Prison-Reception Center, Wasco:
Correctional Clinical Case Management--Working drawings  . . .
101,000

(39) 61.28.426-North Kern State Prison, Delano: Reception Center
Screening and Evaluation--Working drawings   . . . 137,000

(40) 61.28.427-North Kern State Prison, Delano: Correctional Clinical

Case Management--Working drawings  . . . 101,000

(41) 61.28.428-North Kern State Prison, Delano: Correctional
Treatment Center, Phase II--Preliminary plans and working drawings
. . . 223,000

(42) 61.30.426-Centinela State Prison, Imperial: Correctional
Treatment Center, Phase II--Preliminary plans and working drawings
. . . 276,000

(43) 61.34.426-Ironwood State Prison, Blythe: Correctional Treatment
Center, Phase II--Preliminary plans and working drawings  . . .
276,000

Provisions:

1. The funds appropriated in Schedule (1) are to be allocated by the
Department of Corrections, upon approval by the Department of
Finance, to develop design and cost information for new projects for
which funds have not been previously appropriated, but for which
preliminary plan funds, working drawings funds, or working drawings
and construction funds are expected to be included in the 1999-2000
or 2000-2001 Governor's Budget, and for which cost estimates or
preliminary plans can be developed prior to legislative hearings on
the
1999-2000 and 2000-2001 Governor's Budgets, respectively. These
funds may be used for all of the following: budget package
development, architectural programming, engineering assessments,
schematic design, and preliminary plans. The amount appropriated in
this item for that purpose is not be construed as a commitment by the

Legislature as to the amount of capital outlay funds it will
appropriate
in any future year.

2. As used in this appropriation, studies shall include site studies
and
suitability reports, environmental studies, master planning,
architectural programming and schematics.

3. Notwithstanding Section 13332.11 of the Government Code, for
projects funded in Schedules (3), (10), (13), (14), (15), (16), (19),

(21), (22), (28), (30), (31), (33), (34), (35), (36), (37), (38),
(39), and
(40), the State Public Works Board shall not approve a recognized
deficit exceeding 10 percent of the original construction cost
estimate.

5240-302-0001--For capital outlay, Department of Corrections  . . .
3,308,000

Schedule:

(1) 61.01.760-Humboldt Bay National Wildlife Refuge--Acquisition
and construction  . . . 577,000

(2) 61.01.761-Honey Lake Wildlife Area--Acquisition  and
construction    . . . 843,000

(3) 61.01.762-Allensworth Ecological Reserve--Acquisition and
construction  . . . 538,000

(4) 61.01.763-Mayacama Mountains Sanctuary--Construction  . . .
313,000

(5) 61.01.764-Kern River Preserve--Acquisition and construction  . .

. 344,000

(6) 61.01.765-O'Neal Canyon--Acquisition and construction  . . .
91,000

(7) 61.01.766-California City Desert Tortoise Natural
Area--Acquisition  . . . 52,000

(8) 61.01.767-Cowbird Trapping Program  . . . 259,000

(9) 61.01.768-Bald Eagle Breeding Program  . . . 50,000

(10) 61.01.769-Peregrine Falcon Fund  . . . 25,000

(11) 61.01.770-Program management  . . . 216,000

Provisions:

1. The amounts appropriated in this item represent the cost
estimates
of the Department of Corrections to implement the Habitat
Conservation Plan as submitted by the department to the United States

Fish and Wildlife Service and the Department of Fish and Game.

2. Funds appropriated in this item shall be available for expenditure

only after the United States Fish and Wildlife Service and the
Department of Fish and Game have given final approval of the Habitat
Conservation Plan of the Department of Corrections.

3. Notwithstanding Section 13332.11 of the Government Code, any
changes in the Habitat Conservation Plan of the Department of
Corrections may be approved by the State Public Works Board not less
than 30 days after notification to the Chairperson of the Joint
Legislative Budget Committee, the chairpersons of the fiscal
committees in each house, and the Chairperson of the Joint Committee
on Prison Construction and Operations.

 (4)  

4.   Funds appropriated in Schedule (1) include $140,000 for the

Humboldt Bay National Wildlife Refuge to provide for a restoration
supervisor for seven years.

5. Funds appropriated in Schedule (3) include $60,000 to provide for
a restoration supervisor for four years.

6. Funds appropriated in Schedule (4) include $225,000 to provide a
staff position for the California Audubon Society for five years.

7. Funds appropriated in Schedule (8) shall be provided to existing
or
new cowbird trapping programs for a minimum of 10 traps.

8. Funds appropriated in Schedule (9) shall be provided to the San
Francisco Zoo for purposes of producing and releasing four bald
eagles.

9. Funds appropriated in Schedule (10) shall be provided to the Santa

Cruz Predatory Bird Group for breeding, release, and monitoring of
four peregrine falcons. 

5240-401--If bonds approved to be issued for projects funded under
Item 5240-301-0660 of Section 2.00 of Chapter 282 of the Statutes of
1997 are not sold, the   

5240-401--If the bonds authorized for the projects scheduled in Item
5240-301-0660 of Section 2.00 of the Budget Act of 1997 (Ch. 282,
Stats. 1997) are not sold, the   Department of Corrections shall

commit a sufficient portion of its support appropriation provided for

in this act to repay any loans from the Pooled Money Investment
Account. It is the intent of the Legislature that this commitment
shall
be included in future Budget Acts until outstanding loans are repaid
either through the sale of bonds or from an appropriation.

5240-490--Reappropriation, Department of Corrections. The balances
of the appropriations provided in the following citations are
reappropriated for the purposes, and subject to the limitations,
unless
otherwise specified, provided for in the appropriations:

0001--General Fund

Item 5240-302-001, Budget Act of 1995

(1) 61.01.350--Statewide: Emergency Bed Projects--Studies,
preliminary plans, working drawings, construction, long lead, and
equipment

Item 5240-301-0001, Budget Act of 1997

(11) 61.08.020--California Institution for Men, Chino: PCE
Contamination Cleanup--Preliminary plans and working drawings

0746--1986 Prison Construction Fund

Item 5240-301-746, Budget Act of 1995

(3) 61.10.200--California Men's Colony, San Luis Obispo: Primary
and Secondary Electrical Distribution System--Working drawings and
construction

5240-491--Reappropriation, Department of Corrections.
Notwithstanding any other provision of law, the balance of the
appropriation in Item 5240-001-853 of the Budget Act of 1992 (Ch.
587, Stats. 1992), as reappropriated by Item 5240-490 of the Budget
Act of 1994 (Ch. 139, Stats. 1994), by Item 5240-490 of the Budget
Act of 1995, as added by Section 2 of Chapter 980 of the Statutes of
1995, and by Item 5240-490 of the Budget Act of 1997 (Ch. 282,
Stats. 1997), is reappropriated for the purchase of two buses to
transport inmates, and the balance is reappropriated for the same
purposes as provided in those reappropriations, and shall be
available
for expenditure until June 30, 1999.

5430-001-0001--For support of the Board of Corrections   . . .
1,484,000

Schedule:

(a) 11-Corrections Standards and Services  . . . 2,688,000

(b) 21-Standards and Training for Local Officers  . . . 2,333,000

(c) 31.01-Administration  . . . 297,000

(d) 31.02-Distributed Administration  . . . -297,000

(e) Reimbursements  . . . -524,000

(f) Amount payable from the Corrections Training Fund (Item
5430-001-0170)  . . . -2,141,000

(g) Amount payable from the 1988 County Correctional Facilities
Capital Expenditure and Youth Facility Fund (Item 5430-0010796)  .
. . -500,000

(h) Amount payable from the Federal Trust Fund (Item 5430-0060890)
. . . -372,000

5430-001-0170--For support of the Board of Corrections, for payment
to Item 5430-001-0001, payable from Corrections Training Fund  . .
. 2,141,000

5430-001-0796--For support of the Board of Corrections, for payment
to Item 5430-001-0001, payable from the 1988 County Correctional
Facilities Capital Expenditure and Youth Facility Fund  . . . 500,000


5430-006-0890--For support of the Board of Corrections, for payment
to Item 5430-001-0001, payable from the Federal Trust Fund (Federal
Crime Bill)  . . . 372,000

Provisions:

1. Notwithstanding any other provision of law, the funds appropriated

by this item shall be available for expenditure until June 30, 2002.


5430-101-0170--For local assistance, Board of Corrections, Program
21--Standards and Training for Local Officers, payable from the
Corrections Training Fund  . . . 14,720,000

5430-102-0001--For local assistance, Board of Corrections  . . .

14,000,000 
 9,000,000 

Provisions:

1. The Board of Corrections shall allocate funds to the City of Los
Angeles on a proportional basis consistent with the prior year
allocation for the Community Law Enforcement and Recovery
Demonstration Project established by Chapter 506, Statutes of 1997.

5430-103-0001--For local assistance, Board of Corrections  . . .

2,000,000 
 500,000 

Provisions: 

1. Demonstration grants shall be awarded by the Board of Corrections
on a competitive basis for the At-Risk Youth Early Intervention
Program established by Chapter 909, Statutes of 1997.  

1. Notwithstanding any other provision of law, the funds appropriated

by this item shall only be available to the County of San Diego to
provide funding for the At-Risk Youth Early Intervention Program
established pursuant to Section 601.5 of the Welfare and Institutions

Code. These funds shall be used by the County of San Diego to
continue implementation, and to perform an evaluation, of the
program.

5430-104-0001--For local assistance, Board of Corrections  . . .
1,200,000

Provisions:

1. Funds appropriated by this item shall be available solely for
security, housing, and program costs at the Northern California
Regional Facility located in Humboldt County. This is a one-time
appropriation.

5430-105-0001--For local assistance, Board of Corrections  . . .
2,000,000

Provisions:

1. The funds appropriated by this item shall be expended for
competitive grants to counties statewide for the purpose of planning
and developing alternative sanctions for adult mentally ill
offenders.
To be eligible for a grant, each applicant county shall establish a
strategy committee that includes, at a minimum, the sheriff or the
director of the county department of corrections, who shall serve as
chairperson of the committee; representatives of local law
enforcement
agencies; the chief probation officer; the county mental health
director;
and representatives from organizations that provide, or have
provided,
treatment, services, or stability, including income, housing, and
caretaking, for persons with mental illnesses. Counties that are
awarded grants shall use the funds to prepare plans to (a) gather
data
about the current adult mentally ill offender population, including
resources available to manage this population, (b) improve and
marshal local law enforcement, health and mental health, social
services, and educational resources to treat, house, and supervise
adult
mentally ill offenders who are currently under the custody or
supervision of the local or state criminal justice system, and (c)
maximize the provision of collaborative and integrated services for
these offenders. In no case shall a grant to an individual county
exceed
$100,000.

2. Of the funds appropriated by this item, up to 5 percent may be
transferred to Item 5430-001-0001 for expenditure by the Board of
Corrections for the oversight and implementation of the grants.

3. Grants made with funds appropriated by this item shall be
distributed during the 1998-99 fiscal year and the Board of
Corrections
shall require that the grantees' plans be completed no later than
December 31, 1999. The board shall report to the committees of the
Legislature that consider fiscal, criminal-justice, mental-health,
and
local-government issues, by March 1, 1999, on its implementation of
this grant program, and shall include with the report copies of the
plans developed by the grantees. 

5430-106-0890--For local assistance, Board of Corrections Program
11, payable from Federal Trust Fund  . . .  12,015,000

 93,394,000 

Provisions: 

1. Notwithstanding any other provision of law, the funds appropriated

by this item shall be available for expenditure until June 30, 2002.

 

1. Of the amount appropriated by this item, $12,015,000, which
constitutes 15 percent of the federal 1998 fiscal year Federal Crime
Bill grants, shall be allocated by the Board of Corrections to local
governments through competitive grants to build or expand, or both
build and expand, adult and juvenile detention facilities, as
authorized.
Local entities shall be responsible for meeting the 10 percent match
requirement.

2. The Legislature hereby declares that exigent circumstances exist
regarding the impact of the increasing number of juvenile offenders
on
public safety in California and that, of the funds allocated to the
state
pursuant to the Federal Violent Crime Control and Law Enforcement
Act and appropriated by this item, an amount not less than
$81,379,000 shall be used to address these circumstances through
   competitive grants to counties. The percentage of juveniles
convicted
of crimes far exceeds the percentage of adults convicted of similar
crimes. The fast-rising number of violent juvenile offenders affects
the
efforts of law enforcement and threatens public safety throughout the

state. The need to enhance public safety is particularly important
for
local jurisdictions that do not have adequate facilities to confine
the
increasing number of juvenile offenders. Therefore, the Legislature
intends that these funds be used to support the construction or
expansion of juvenile detention facilities of the appropriate
security
levels, as defined by the Federal Violent Crime Control and Law
Enforcement Act and regulations adopted pursuant thereto, to ensure
appropriate custody space for the confinement of the growing number
of juvenile offenders.

3. For the grant programs identified in Provisions 1 and 2 of this
item,
the Board of Corrections shall establish minimum standards, funding
schedules, and procedures which shall take into consideration, but
not
be limited to, all of the following:

(a) Documentation of need for the project or projects.

(b) Adoption of a formal county plan to finance construction of the
proposed project or projects.

(c) Submittal of a preliminary staffing plan for the project or
projects.

(d) Submittal of architectural drawings, which shall be approved by
the
board for compliance with minimum adult or juvenile detention
facility standards and which shall also be approved by the State Fire

Marshal for compliance with fire safety and life safety requirements.


(e) Documentation that the facilities can be safely staffed and
operated.

(f) Submittal by the county, or a group of counties acting together,
of
a plan that identifies the county continuum of care model for
prevention, intervention, supervision, treatment, and incarceration
of
juvenile and adult offenders. The plan shall also identify the manner

in which the county will maximize all funding sources (local criminal

justice, local social services, federal and state programs, and
education) for providing appropriate services for juvenile and adult
offenders.

4. Local entities shall match at least 25 percent of the grant. Not
more
than 15 percent of this minimum match requirement shall be provided
with in-kind resources. The greater the percentage of matching funds
that a county provides, the higher the priority the county shall be
given
for allocation of funds.

5. Of the funds allocated pursuant to Provision 2 of this item, up to
3
percent may be transferred, upon approval of the Department of
Finance, to Item 5430-001-0001 to support the administration,
including technical assistance and oversight, of the implementation
of
grant awards pursuant to Provision 2.

6. Notwithstanding any other provision of law, the funds appropriated

by this item are available for expenditure until June 30, 2002.

5430-107-0001--For local assistance, Board of Corrections  . . .
30,000,000

Provisions:

1. (a) The funds appropriated by this item shall be available to
support
the Juvenile Crime Enforcement and Accountability Challenge Grant
(Challenge Grant) Program, as modified and amended by Assembly
Bill 2261 of the 1997-98 Regular Session, and the Juvenile Female
Offender Intervention Program as established by Senate Bill 1657 of
the 1997-98 Regular Session.

(b) Of the funds appropriated by this item, up to 5 percent may be
transferred, upon approval of the Department of Finance, to Item
5430-001-0001 to support the administration, including technical
assistance and oversight, and evaluation of the implementation of
grant
awards pursuant to this provision.

(c) Of the funds appropriated by this item, the Board of Corrections
may award up to $2,000,000 statewide, in individual grants not
exceeding $50,000, to counties to assist in developing and upgrading
local action plans as necessary to compete for the Challenge Grant
and
Juvenile Female Offender Intervention Program grants, including the
development of strategies to address out-of-home placement needs for
delinquent youth pursuant to Section 602 of the Welfare and
Institutions Code within the county or region where the county is
located. The board may also award up to $500,000 statewide, in
individual grants not to exceed $100,000, to extend program
evaluation followup activities for existing programs which
demonstrate
promise for program replication.

(d) Of the funds remaining, the board shall, on a statewide,
competitive basis, award grants pursuant to subdivision (a) of this
provision.

(e) Of the funds available for grant awards in subdivision (d), the
board shall ensure that, on a statewide basis, an amount not less
than
50 percent, or $10,000,000, whichever is greater, is awarded to
support strategies identified in county local action plans for female

juvenile offenders pursuant to the Juvenile Female Offender
Intervention Program.

(f) When awarding grants pursuant to this provision, the board shall
give priority to those grant applications submitted under subdivision

(d) of this provision that support strategies identified in county
local
action plans for the development and implementation of out-of-home
placement options for delinquent youth pursuant to Section 602 of the

Welfare and Institutions Code.

(g) Notwithstanding any other provision of law, funds appropriated by

this item shall be allocated pursuant to this provision.

2. The Executive Steering Committee responsible for making
recommendations to the Board of Corrections for the award of grants
under Provision 1 of this item shall include a representative from
the
State Department of Social Services and the State Department of
Mental Health who are knowledgeable in matters affecting the
out-of-home placement of youths by the court.

3. Funds appropriated by this item shall be available for allocation
by
the Board of Corrections until June 30, 2003. 

5430-109-0001--For local assistance, Board of Corrections  . . .

15,000,000 
 4,000,000 

Provisions: 

1. The appropriation in this item shall be used to support the Eight
Percent Solution Program in the Counties of Los Angeles, Riverside,
and San Francisco. Each of these counties shall receive $5,000,000 of

the amount appropriated in this item.  

1. The funds appropriated by this item shall be used solely to
implement the Repeat Offender Prevention Project established
pursuant to Assembly Bill 2594 of the 1997-98 Regular Session.
Funds appropriated by this item shall be available for expenditure
only
if Assembly Bill 2594 is enacted. Funds appropriated by this item are

appropriated on a one-time basis. Notwithstanding any other provision

of law, the funds appropriated in this item shall be available for
expenditure through June 30, 2001.

5430-110-0001--For local assistance, Board of Corrections  . . .
325,000

Provisions:

1. Funds appropriated by this item are available for the purpose of
constructing a firing range at the San Joaquin County Sheriff's
Operations Center and Jail Complex. This is a one-time appropriation.



5430-295-0001--For local assistance, Board of Corrections, for
reimbursement, in accordance with the provisions of Section 6 of
Article XIII B of the California Constitution or of Section 17561 of
the
Government Code, of the costs of any new program  or increased level
of service of an existing program mandated by statute or executive
order, State Controller  . . . 700,000

Schedule:

(1) 98.01.022.193--Mandates: Domestic Violence Treatment Program
Approvals (Ch. 221, Stats. 1993)  . . . 700,000

(2) 98.01.033.281--Mandates: Victims' Statements--Minors (Ch. 332,
Stats. 1981)  . . . 0

Provisions:

1. Allocations of funds provided in this item to the appropriate
local
entities shall be made by the Controller in accordance with the
provisions of each statute or executive order that mandates the
reimbursement of the costs, and shall be audited to verify the actual

amount of the mandated costs in accordance with subdivision (d) of
Section 17561 of the Government Code. Audit adjustments to prior
year claims may be paid from this item. Funds appropriated in this
item may be used to provide reimbursement pursuant to Article 5
(commencing with Section 17615) of Chapter 4 of Part 7 of Division
4 of Title 2 of the Government Code.

2. If any of the scheduled amounts are insufficient to provide full
reimbursement of costs, the Controller may, upon notifying the
Director of Finance in writing, augment those deficient amounts from
the unencumbered balance of any other scheduled amounts therein. No
order may be issued pursuant to this provision unless written
notification of the necessity therefor is provided to the chairperson
of
the committee in each house which considers appropriations and the
Chairperson of the Joint Legislative Budget Committee or his or her
designee.

3. Pursuant to Section 17581 of the Government Code, mandates
identified in the appropriation schedule of this item with an
appropriation of $0 and included in the language of this provision
are
specifically identified by the Legislature for suspension during the
1998-99 fiscal year:

(a) Victim's Statements--Minors (Ch. 332, Stats. 1981)

5430-490--Reappropriation, Board of Corrections. Notwithstanding
any other provision of law, the balances of the appropriations
provided
in the following citations are reappropriated for the purposes
provided
for in the appropriations and shall be available for expenditure
until
June 30, 2001.

0001-General Fund

(1) Item 5430-101-0001, Budget Act of 1996 (Juvenile Justice Grants)

(2) 5430-001-0001, Budget Act of 1997:

(a) Repeat Offender Program

(b) Violent Offender Incarceration/Truth-In-Sentencing--state
operations match ($173,000)

(3) 5430-105-0001, Budget Act of 1997 (Repeat Offender Program)

0890--Federal Trust Fund

(1) Item 5430-005-0890, Budget Act of 1997 (Violent Offender
Incarceration/Truth-In-Sentencing)

5440-001-0001--For support of the Board of Prison Terms, Program
10  . . . 14,396,000

5450-001-0001--For support of the Youthful Offender Parole Board,
Program 10  . . . 3,303,000

5460-001-0001--For support of the Department of the Youth Authority
. . .  264,320,000 
 264,062,000 

Schedule:

(a) 20-Institutions and Camps  . . .  278,540,600 
 278,282,600 

(b) 30-Parole Services  . . .  43,020,000 
 43,067,000 

(c) 40-Education Services  . . .  9,965,400 
 9,918,400 

(d) 50.01-Administration  . . .  18,056,000 
 17,548,000 

(e) 50.02-Distributed Administration  . . .  -17,954,000

 -17,446,000 

(f) Reimbursements  . . . -64,450,000

(g) Amount payable from the 1988 County Correctional Facilities
Capital Expenditure and Youth Facility Bond Fund (Item
5460-001-0796)  . . . -154,000

(h) Amount payable from the California State Lottery Education
Fund--California Youth Authority (Item 5460-001-0831)  . . .
-1,229,000

(i) Amount payable from the Federal Trust Fund (Item 5460-0010890)
. . . -1,475,000

Provisions:

1. Of the funds appropriated in Schedule (a), $31,000 is provided for

payment of energy service contracts in connection with the issuance
of Public Works Board Energy Efficiency Revenue Bonds (State Pool
Program), Series 1986A.

2. Notwithstanding any other provision of law, the Director of
Finance
may authorize a loan from the General Fund to the Department of the
Youth Authority for the purpose of meeting operational cash-flow
obligations for the 1998-99 fiscal year. The loan shall not exceed
the
estimated amount of reimbursements to be collected, pursuant to
Chapter 6 of the Statutes of 1996, for the final quarter of any
fiscal
year in which the loan is to be provided.

4. Notwithstanding any other provision of law, the Department of the
Youth Authority may transfer up to five percent of the amount in
Schedule (a), (b), or (c) between Schedules (a), (b), and (c) for
adjustments as a result of the creation of Program 40-Education
Services, upon approval of the Department of Finance. Any transfers
for this purpose exceeding 5 percent may occur not sooner than 30
days after notification thereof to the Chairperson of the Joint
Legislative Budget Committee and the chairpersons of the fiscal
committees of the Legislature. 

5. Of the funds appropriated in this item, $209,000 shall be used for

voluntary tattoo removal. These funds may be used only to contract
with licensed health care providers for the removal of tattoos from
the
visible hand, face, and neck area of wards, and only upon the
determination by institutional treatment staff that removal is
warranted
and necessary for the success of the ward on parole. The funds
specified in this provision may not be used to purchase equipment for

voluntary tattoo removal. Any moneys subject to this provision that
are
not expended for the purposes specified in this provision shall
revert
to the General Fund. The Department of the Youth Authority shall
make its tattoo removal equipment available for use by nonprofit
community groups and local governments when not in use by the
department. The department shall execute an agreement with these
entities for the use of that equipment. It is the intent of the
Legislature
that the department provide only access to the equipment and that all

operational and other costs shall be borne by the entity utilizing
the
equipment. The department shall report to the Legislature by March 1,

1999, on the number of wards that have received tattoo removals, the
average cost of each removed, and the average total cost per ward.
 

5. (a) Of the funds appropriated in this item, $209,000 shall be used

for voluntary tattoo removal. These funds may only be used to
contract
with licensed health care providers for the removal of tattoos from
the
hands, face, and visible neck areas of wards, and only upon the
determination by institutional treatment staff that removal is
warranted
and necessary for the success of the ward when he or she is paroled.

The funds specified in this provision may not be used to purchase
equipment for voluntary tattoo removal.

(b) Any funds subject to this provision that are not expended for the

purposes specified in this provision shall revert to the General
Fund.
It is the intent of the Legislature that the Department of the Youth
Authority expedite delivery of cost-effective, voluntary tattoo
removal
services to eligible wards and parolees, as provided in this
provision.

(c) The Department of the Youth Authority shall make its tattoo
removal equipment available for use by nonprofit community groups
and local governments when not in use by the department. The
department shall execute an agreement with these entities for the use

of that equipment. It is the intent of the Legislature that the
department
provide access only to the equipment and all operational and other
costs shall be borne by the entity utilizing the equipment.

(d) The department shall report to the Legislature by March 1, 1999,
on the number of wards that have received tattoo removals, the
average cost of each removal, and the average total cost per ward.

6. Of the amount included in this item, $250,000 is to provide
additional employment services to Department of the Youth Authority
parolees. This amount shall be provided on a two-year limited-term
basis, and the department may submit a request to continue the funds
for the 2000-01 fiscal year. The department shall report to the
fiscal
committees of each house of the Legislature by January 1, 2000, on
the
impact of employment services on parolee recidivism. 

5460-001-0796--For support of the Department of the Youth
Authority, for payment to Item 5460-001-0001, payable from the 1988
County Correctional Facilities Capital Expenditure and Youth Facility

Bond Fund  . . . 154,000

5460-001-0831--For support of the Department of the Youth
Authority, for payment to Item 5460-001-0001, payable from the
California State Lottery Education Fund--California Youth Authority
. . . 1,229,000

Provisions:

1. All funds received pursuant to Proposition 37 that are allocable
to
the Department of the Youth Authority pursuant to Section 8880.5 of
the Government Code and that are in excess of the amount
appropriated in this item, are hereby appropriated in augmentation of

this item. Such additional funds may be expended only upon written
approval of the Department of Finance.

5460-001-0890--For support of the Department of the Youth
Authority, for payment to Item 5460-001-0001, payable from the
Federal Trust Fund  . . . 1,475,000

5460-003-0001--For support of the Department of the Youth Authority
for rental payments and insurance on lease revenue bonds  . . .
404,000

5460-011-0001--For support of the Department of the Youth Authority
(Proposition 98)  . . . 39,391,000

Schedule:

(a) 40-Education Services  . . . 39,391,000

5460-101-0001--For local assistance, Department of the Youth
Authority  . . . 3,919,000

Schedule:

(a) 20-Institutions and Camps  . . . 92,000

(b) 30-Parole Services  . . . 3,827,000

Provisions:

1. The amount appropriated by this item is provided for the following

purposes:

a. To pay the transportation costs of persons committed to the
Department of the Youth Authority to or between its facilities,
including the return of parole violators, provided that expenditures
made under this item shall be charged to either the fiscal year in
which
the claim is received by the Controller or the fiscal year in which
the
warrant is issued by the Controller. However, claims shall be filed
by
local jurisdictions within six months after the end of the month in
which the costs are incurred.

b. To reimburse counties, pursuant to Section 1776 of the Welfare and

Institutions Code, for the cost of the detention of Youth Authority
parolees who are detained on alleged parole violations, provided that

expenditures made under this item shall be charged to either the
fiscal
year in which the claim is received by the Controller or the fiscal
year
in which the warrant is issued by the Controller. However, claims
shall
be filed by local jurisdictions within six months after the end of
the
month in which the costs are incurred.

5460-301-0001--For capital outlay, Department of the Youth Authority
. . . 14,681,000

Schedule:

(1) 60.01.035-Statewide: Budget Packages and Advanced Planning  .
. . 250,000

(3) 60.02.055-Preston Youth Correctional Facility: Perimeter Security

Fencing--Working drawings and construction  . . . 1,555,000

(4) 60.02.075-Preston Youth Correctional Facility: Water Line
Replacement--Acquisition, preliminary plans, and working drawings
. . . 456,000

(4.1) 60.02.085-Preston Youth Correctional Facility: Personal
Alarms--Working drawings  . . . 156,000

(4.5) 60.04.020-Northern Youth Correctional Reception Center/Clinic:

Correctional Treatment Center--Preliminary plans and working
drawings  . . . 196,000

(4.6) 60.04.025-Northern Youth Correctional Reception Center/Clinic:

Personal Alarms--Working drawings  . . . 58,000

(5) 60.26.050-DeWitt Nelson Youth Correctional Facility: Visitor's
Security Entrance/Hall--Preliminary plans and working drawings  . .
. 234,000

(5.1) 60.26.085-Dewitt Nelson Youth Correctional Facility: Personal
Alarms--Working drawings  . . . 69,000

(5.2) 60.26.090-O.H. Close Youth Correctional Facility: Personal
Alarms--Working drawings  . . . 60,000

(5.3) 60.26.095-Karl Holton Youth Correctional Facility: Personal
Alarms--Working drawings  . . . 62,000

(5.4) 60.52.100-El Paso de Robles Youth Correctional Facility:
Personal Alarms--Working drawings  . . . 118,000

(6) 60.54.080-Fred C. Nelles Youth Correctional Facility: Visitor's
Security Entrance/Hall--Preliminary plans and working drawings  . .
. 150,000

(7) 60.54.090-Fred C. Nelles Youth Correctional Facility: Sewer Line
Replacement--Preliminary plans and working drawings  . . . 229,000

(7.1) 60.54.105-Fred C. Nelles Youth Correctional Facility: Personal
Alarms--Working drawings  . . . 93,000

(8) 60.56.030-Southern Youth Correctional Reception Center/Clinic:
Visiting Facility--Preliminary plans and working drawings  . . .
123,000

(9) 60.58.070-Ventura Youth Correctional Facility: Special Education
Assessment Center--Preliminary plans and working drawings  . . .
127,000

(10) 60.58.080-Ventura Youth Correctional Facility: Visitor's
Security
 Entrance/Visiting Hall--    Entrance/Visiting
Hall-- 
Preliminary plans and working drawings  . . . 234,000

(10.5) 60.58.085-Ventura Youth Correctional Facility: Correctional
Treatment Center--Preliminary plans and working drawings  . . .
186,000

(11) 60.58.090-Ventura Youth Correctional Facility: Ward Separation
Plan--Preliminary plans, working drawings and construction  . . .
847,000

(11.1) 60.58.090-Ventura Youth Correctional Facility: Personal
Alarms--Working drawings  . . . 73,000

(12) 60.67.080-Heman G. Stark Youth Correctional Facility: Living
Unit Doors, Units I, III--Working drawings and construction  . . .
4,381,000

(13) 60.67.110-Heman G. Stark Youth Correctional Facility: Master
Key System--Working drawings and construction  . . . 1,099,000

(13.5) 60.67.110-Herman G. Stark Youth Correctional Facility:
Correctional Treatment Center--Preliminary plans and working
drawings  . . . 276,000

(13.6) 60.67.135-Herman G. Stark Youth Correctional Facility:
Personal Alarms--Working drawings  . . . 149,000

(14) 60.90.010-Minor Projects  . . . 3,500,000

Provisions:

1. The funds appropriated in Schedule (1) shall be allocated by the
Department of the Youth Authority, upon approval of the Department
of Finance, to develop design and cost information for new projects
for
which funds have not been previously appropriated, but for which
preliminary plans funds, working drawings funds, or working drawing
or construction funds are expected to be included in the Governor's
Budget for the 1999-2000 or 2000-2001 fiscal year, and for which cost

estimates and/or preliminary plans can be developed prior to
legislative
hearings on the Governor's Budget for the 1999-2000 or 2000-2001
fiscal year. These funds may be used for the following: budget
package
development, architectural programming, engineering assessments,
schematic design, and preliminary plans. The amount appropriated in
this item for these purposes shall not be construed as a commitment
by
the Legislature as to the amount of capital outlay funds it will
appropriate in any future year.

2. As used in this appropriation, studies shall include site studies
and
suitability reports, environmental studies, master planning,
architectural programming and schematics.

5460-401--In the event the bonds authorized for the projects
scheduled
in Item 5460-301-0660, Budget Act of 1997, are not sold, the
Department of the Youth Authority shall commit a sufficient portion
of its support appropriation provided for in this Budget Act to repay

any loans from the Pooled Money Investment Account. It is the intent
of the Legislature that this commitment shall be included in future
Budget Acts until outstanding loans are repaid either through the
sale
of bonds or from an appropriation.

                              EDUCATION

6110-001-0001--For support of Department of Education  . . . 

33,946,200 
 35,895,400 

Schedule:

(a) 10-Instruction  . . . 41,781,000

(b) 20-Instructional Support  . . .  50,034,200 
 52,283,400 

(c) 30-Special Programs  . . . 34,922,000

(d) 41.00-Executive Management and Special Services  . . . 9,595,000

(e) 41.01-State Board of Education  . . . 1,211,000

(f) 42.01-Department Management and Special Services  . . .
25,044,000

(g) 42.02-Distributed Department Management and Special Services
. . . -25,044,000

(gx) Unallocated  . . . 950,000 

(h) Reimbursements  . . . -13,957,000

(i) Amount payable from Federal Trust Fund (Item 6110-001-0890)
. . .  -89,640,000 
 -90,890,000 

Provisions:

1. An amount equal to or greater than the amount appropriated in
Schedule (e) shall be available for support of the State Board of
Education.

2. Notwithstanding Sections 33190 and 51219 of the Education Code,
or any other provision of law, the State Department of Education
shall
expend no funds to prepare (a) a statewide summary of student
performance on school district proficiency assessments or (b) a
compilation of information on private schools with five or fewer

students    pupils  .

3. Of the amount appropriated by this item, $74,000 shall be expended

for staff in the  department's   Program Evaluation
and
Research Division  of the State Department of Education   to

(a) review and approve studies and program evaluations and (b) assist

                                        in contract management.

4. Of the funds appropriated in this item, $90,000 shall be available

only for Educational Technology support services pursuant to Section
51874 of the Education Code and for the expenses incurred by
members of the Education Council for Technology in Learning in
carrying out their duties.

5. Notwithstanding any other provision of law, of the funds
appropriated in this item, $2,500,000 shall be used to provide
technical
assistance and administrative support to the Healthy Start Program
and
$240,000 shall be used to provide technical assistance and
administrative support for the  Teen Pregnancy Prevention and
Intervention Program (Art. 1 (commencing with Sec. 8800), Ch. 5,
Part 6, Ed. C.).

6. Of the funds appropriated by this item, $300,000 and two positions

shall be available only for plan ning and implementation of the focus

schools program authorized by Chapter 6.1 (commencing with Section
52050) of Part 28 of the Education Code.

7. Funds appropriated by this item may be expended or encumbered
to make one or more payments under a personal services contract of
a visiting educator pursuant to Section 19050.8 of the Government
Code, a long-term special consultant services contract, or an
employment contract between an entity that is not a state agency and
a person who is under the direct or daily supervision of a state
agency,
only if all of the following conditions are met:

(a) The person providing service under the contract provides full
financial disclosure to the Fair Political Practices Commission in
accordance with the rules and regulations of the commission.

(b) The service provided under the contract does not result in the
displacement of any represented civil service employee.

(c) The rate of compensation for salary and health benefits for the
person providing service under the contract does not exceed by more
than 10 percent the current rate of compensation for salary and
health
benefits determined by the Department of Personnel Administration
for civil service personnel in a comparable position. The payment of
any other compensation or any reimbursement for travel or per diem
expenses shall be in accordance with the State Administrative Manual
and the rules and regulations of the State Board of Control. 


8. Of the funds appropriated by this item, $261,000 shall be used for

support of the Single Gender Academies Program (Ch. 3.1 (C/W
58526), Pt. 31, Ed. C.). These funds are to provide one position and
$175,000 shall be used for an independent evaluation of the program.



9. Of the funds appropriated by this item, $150,000 shall be used for

the Gang Risk Intervention Program (Ch. 5 (commencing with Sec.
58700), Pt. 31, Ed. C.).

10. The funds appropriated in Schedule (e)  shall be
   are
  for the support of the State Board of Education and shall be
directed to meet the policy priorities of its members.

11. The funds appropriated by this item may not be expended for any
REACH program.

12. The funds apropriated by this item may not be expended for the
development or dissemination of program advisories, including, but
not limited to, program advisories on the subject areas of reading,
writing, and mathematics, unless explicitly authorized by the State
Board of Education.

13. Of the funds appropriated in this item, $206,000 shall be
available
as matching funds for the State Department of Rehabilitation and
provide coordinated services to disabled pupils. Expenditure of the
funds shall be identified in the memorandum of understanding or other

written agreement with the Department of Rehabilitation to ensure an
appropriate match to federal vocational rehabilitation funds.

14. Of the funds appropriated in this item, no less than $3,142,000
is
available for support of Child Care Services (Program 30.10).

15. Pursuant to Provision  10    8   of
Item
6110-196-0001, the Department of Finance may transfer up to
$20,000,000 of federal funds to this item.

16. Of the funds appropriated by this item, $375,000 is available for

support of the Class Size Reduction Program (Ch. 6.10 (commencing
with Sec. 52120), Pt. 28, Ed. C.).

17. The State Department of Education may not begin the charter
school direct funding pilot project until the Director of Finance has

approved the department's policy for the fiscal accountability and
liability of charter schools selected for the pilot project. The
Director
of Finance shall provide notification of that approval to the
chairperson
of the fiscal and appropriate policy committees of each house of the
Legislature, and the Chairperson of the Joint Legislative Budget
Committee, not less that 30 days prior to the effective date of this
approval of the policy.

18. Of the amount appropriated in Schedule (b), $50,000 is for
reporting the results of physical performance tests administered by
school districts in 1998 pursuant to Chapter 6 (commencing with
Section 60800) of Part 33 of the Education Code. The 
California
  State   Department of Education shall ensure
that
results comparing the performance of pupils in each school and
district
to national norms are reported to school district governing boards
and
shall submit a report of statewide results comparing the performance
of California pupils to national norms to the Legislature and the
Governor prior to January 1, 1999. 

19. Of the funds appropriated by this item, $500,000 is available for

the costs of administering K-12 education programs created or
expanded during the 1997-98 Regular Session for which no other
funding has been made available. The State Department of Education
shall submit an expenditure plan for these funds to the Department of

Finance for review and approval. The funds appropriated by this item
shall be available for expenditure not sooner than 30 days after the
Department of Finance provides notification of its approval of the
plan
to the Legislature in accordance with the procedures set forth in
Section 28.00 of this act.

20. Notwithstanding any other provision of law, the State Board of
Education shall designate for use as part of the STAR Program (Art.
4 (commencing with Sec. 60640), Ch. 5, Pt. 33, Ed. C.) a single
primary language test in each language for which a test is available,
for
grades 2 to 11, inclusive, no later than November 14, 1998.

21. Of the funds appropriated by this item, $700,000 and a one-half
position are provided on a one-time basis for two studies regarding
pupils residing in licensed children's institutions. The State
Department of Education, in conjunction with the Department of
Finance and the Legislative Analyst's Office, shall design requests
for
proposals and contract for two studies related to the following
issues:

(a) The availability of various types and sources of data, and the
feasibility and cost of collecting that data, and other data that is
not
readily available, regarding children residing in licensed children's

institutions. The purpose of this study shall be to determine the
availability of various types of data and to perform preliminary data

collection to determine if there are problems in current practices
and
procedures for providing educational services to these pupils. This
study shall specifically identify the number of children residing in
licensed children's institutions who attend nonpublic schools and who

are not eligible for special education programs. Options shall be
suggested for further study and for improving current practices and
procedures.

(b) The efficacy of current practices and procedures for the transfer
of
educational and other records and the notification of appropriate
public
educational and noneducational agencies upon placement of a child in
a licensed children's institution. This study shall examine whether
current practices and procedures, and any lack of coordination
between
educational and noneducational agencies, may contribute to
inappropriate educational placements and services for children
residing
in licensed children's institutions.

  The first contractor's report shall be completed on or before March
1,
1999. The second contractor's report shall be completed on or before
June 30, 2000. Both reports shall be submitted to the fiscal and
policy
committees of the Legislature, the Office of Child Development and
Education, the Department of Finance, and the Legislative Analyst's
Office.

22. Of the funds appropriated by this item, $100,000 and one position

are provided for administration of the Foster Youth Services Program,

$25,000 is provided for operating expenses, and $250,000 is provided
for training and evaluation of the program.

23. Of the funds appropriated by this item, $650,000 shall be
allocated
by the State Department of Education to an independent evaluator to
assist school districts and county offices of education in developing

data collection and analysis systems, and to perform an evaluation
for
the High-Risk First-Time Offenders Program pursuant to  Article 1
(commencing with Section 47760) of Chapter 2 of Part 26.95 of the
Education Code.

24. Of the funds appropriated by this item, $450,000 shall be
available
for the following programs: low performing schools, college
preparation programs, and remedial programs. 

6110-001-0178--For support of the Department of Education, Program
20.30--Instructional Support, for the purpose of conducting schoolbus

driver instructor training as provided in Section 40070 of the
Education Code, payable from the Driver Training Penalty Assessment
Fund  . . . 993,000

6110-001-0231--For support of Department of Education, Program
20.10.045-Instructional Support, Curriculum Services--Health and
Physical Education-Drug Free Schools, payable from the Health
Education Account, Cigarette and Tobacco Products Surtax Fund  . .
. 969,000

6110-001-0344--For support of Department of Education, Program
20.30 Administrative Services to local educational agencies, payable
from the State School Building Lease-Purchase Fund  . . . 1,513,000

Provisions:

1. Funds appropriated by this item are for support of the activities
of
the School Facilities Planning Division and are to be used
exclusively
for activities related to local school construction, reconstruction,
rehabilitation, modernization, maintenance, deferred maintenance,
year-round school programs, and schoolsite acquisition.

6110-001-0687--For support of Department of Education, for the
California State Agency for Donated Food Distribution, Program
30.50--Donated Food Distribution, payable from the Donated Food
Revolving Fund  . . . 9,111,000

6110-001-0890--For support of Department of Education, for payment
to Item 6110-001-0001, payable from the Federal Trust Fund  . . .

89,640,000 
 90,890,000 

Provisions:

1. The funds appropriated by this item include Federal Vocational
Education Act funds for the 1998-99 fiscal year to be transferred to
community colleges by means of interagency agreements. These funds
shall be used by community colleges for the administration of
vocational education programs.

2. Of the funds appropriated by this item, $82,000 is available to
the
Advisory Commission on Special Education for the in-state travel
expenses of the Commissioners and the Secretary to the Commission.

3. Of the funds appropriated by this item, $382,000 is available for
programs for homeless youth and adults pursuant to the federal
Stewart B. McKinney Act. The department shall participate on the
Health and Welfare Agency Homeless Task Force and shall consult
with the state Departments of Economic Opportunity, Mental Health,
Housing and Community Development, and Economic Development
in operating this program.

4. Of the funds appropriated by this item, up to $364,000 shall be
used
to provide in-service training for special and regular educators and
related persons, including, but not limited to, parents,
administrators,
and organizations serving severely disabled children. These funds are

also to provide up to four positions for this purpose.

5. Of the funds appropriated by this item, $318,000 shall be used to
provide training in culturally nonbiased assessment and specialized
language skills to special education teachers through Second Language

Immersion Institutes.

6. Of the amount appropriated by this item, $177,000 shall be used
for
the administration of the federal public charter schools grant
program.

7. Of the funds appropriated in this item,  $2,600,000
 
$3,050,000   shall be for the administration of programs funded
with federal Goals 2000  Educate America Act   funds. Funds
shall be allocated for the following purposes:

(a)  $1,100,000    $1,220,000   for general

administration of the federal Goals 2000: Educate America Act funds
and administration of local assistance grants and other programs
using
those federal funds. Of this amount $120,000 shall be for the state
operations costs necessary to manage the contract identified in
Provision 7(b) for the evaluation of the Class Size Reduction Program

established pursuant to Chapter 6.10 (commencing with Sec. 52120)
of Part 28 of the Education Code.

(b) $500,000 for a contract for an independent evaluation of the
Class
Size Reduction Program as required by Section 52128 of the
Education Code. Funds shall not be released for this purpose until
the
State Department of Education has certified to the Department of
Finance that matching funds have been secured from third party
sources for the class size reduction evaluation activities.

(c) $500,000 shall be for an evaluation of the impact of the
California
Reading Initiative on the reading achievement of pupils in the public

schools. The California Reading Initiative consists of all
appropriations
in the Budget Act or in any other measure, and all legislation,
chaptered in 1996 or 1997 addressing pre-service and in-service
training, instructional materials, credential requirements, or any
other
activities related to reading instruction. The State Department of
Education shall develop a plan for the evaluation and shall submit
that
plan to the State Board of Education for amendments and approval
prior to initiating the evaluation.

(d) $500,000 is to support the California State University Center for

Teaching Careers, es  tablished pursuant to Chapter 864 of
the
Statutes of 1997.    tablished pursuant to Article 4
(commencing with Section 90530) of Chapter 11 of Part 55 of the
Education Code.

(e) $330,000 shall be available for development of standards for an
English language development (ELD) test. 

8. Of the funds appropriated in this item, $7,895,000 is from the
Child
Care and Development Block Grant Fund and includes $226,000 for
the costs of fingerprint services for the Trustline Registry to the
Department of Justice and $158,000 for an Interagency Agreement
with the Child Development Programs Advisory Committee.

9. Of the funds appropriated by this item, $1,030,000 shall be used
for
administration of the Technology Literacy Challenge Grant Program.
Of this amount, $580,000 is available only for contracted technical
support and evaluation services associated with implementation of the

Technology Literacy Challenge Grant Program.

10. Of the funds appropriated by this item, $2,000,000 is for dispute

resolution services, including mediation and fair hearing services,
provided through contract for the Special Education Program. 


11. Of the funds appropriated by this item, $650,000 shall be
allocated
by the State Department of Education to an independent evaluator to
assist school districts and county offices of education in developing

data collection and analysis systems, and to perform an evaluation
for
the High-Risk First-Time Offenders Program pursuant to Article 1
(commencing with Section 47760) of Chapter 2 of Part 26.95 of the
Education Code.

12.  

11.   Upon certification by the Superintendent of Public
Instruction, and approval by the Department of Finance, the
Controller
shall augment Program 30 of Item 6110-001-0890, of this act, by the
June 30, 1998, unencumbered balance of the $2,000,000 provided in
Provision 8 of Item 6110-001-0890 of Section 2.00 of the Budget Act
of 1997 (Ch. 282, Stats. 1997), for the development of a feasibility
study report for a child care data collection and analysis system and
for
interim data collection and reporting. 

13.  

12.   Upon certification by the Superintendent of Public
Instruction, and approval by the Department of Finance, the
Controller
shall augment Program 30 of Item 6110-001-0890 of this act, by the
June 30, 1998, unencumbered balance of the $500,000 provided for
the development of the Provider Accounting and Reporting
Information System (PARIS) from Program 30 of Item 6110-001-0890
of Section 2.00 of the Budget Act of 1997 (Ch. 282, Stats. 1997).


13. Of the funds appropriated by this item, an amount not to exceed
$200,000 shall be available on a one-time basis from any supplemental

grants of federal funds received by the state pursuant to Part B of
the
federal Individuals with Disabilities Education Act or from any
carryover funds from prior fiscal years from the same source to study

and issue a report to the appropriate fiscal and policy committees of

the Legislature, the Office of Child Development and Education, the
Department of Finance, and the Legislative Analyst's Office regarding

current practices and procedures for educational advocacy for
children
residing in licensed children's institutions. This study and report
shall
examine whether current practices and procedures comply with federal
requirements for individuals with exceptional needs, and shall make
recommendations for ensuring compliance, if necessary, and for
improving the current practices and procedures relating to
educational
advocacy for children placed in licensed children's institutions. If
any
portion of the amount is not expended for the completion of the study

and report, the State Department of Education, subject to the
approval
of the Department of Finance, may direct the unexpended amount to
implementation of the recommended improvements. The notification
requirements of Section 28.00 of this act shall apply to any
direction
of funds to implementation of improvements.

14. Of the funds appropriated by this item, $450,000, 4 staff
positions,
and 1.0 clerical position shall be available for increased
monitoring,
complaint investigation, and training of local educational agency
personnel in monitoring educational programs and services in
nonpublic schools. This increased monitoring and complaint
investigation shall be coordinated with other department monitoring
and complaint investigation functions and shall ensure that pupils in

nonpublic schools and individuals with exceptional needs residing in
licensed children's institutions receive educational services that
comply
with the requirements of state and federal law. The State Department
of Education shall also develop training materials and provide
training
to local educational agency staff regarding monitoring requirements
for
nonpublic schools and shall increase interaction with local
educational
agency staff before, during, and after certification reviews and
complaint investigations. Data shall be gathered from these increased

monitoring and complaint investigation activities and shall be
available
for the studies on pupils residing in licensed children's
institutions
described in Item 6110-001-0001.

15. Of the funds appropriated in this item, $100,000 is available on
a
one-time basis for the purpose of developing the new fiscal
procedures
required by Chapter 854 of the Statutes of 1997 and Chapter 89 of the

Statutes of 1998. 

6110-001-0975--For support of Department of Education, Program
20.40.040--Library and Learning Resources, payable from the
California Public School Library Protection Fund  . . . 15,000

Provisions:

1. Subject to the conditions of Article 6 (commencing with Section
18175) of Chapter 2 of Part 6 of the Education Code, and based on
increases in the funds deposited in the California Public School
Library Protection Fund, the appropriation made by this item may be
increased subject to the approval of the Department of Finance.

6110-003-0001--For support of Department of Education, Program
20.30.020-Instructional Support, Standardized Account Code Structure
. . . 927,000

Provisions:

1. The funds appropriated by this item shall be used only for the
direct
costs to administer the Standardized Account Code Structure program,
as established by Chapter 237 of the Statutes of 1993, to assist any
school district or county office of education in financial distress
or
bankruptcy, to make available standard fiscal, demographic, and
performance data to policy decision makers, and for indirect costs
for
those programs at the rate approved by the United States Department
of Education.

6110-004-0001--For support of Department of Education, Program
20.60.020-Instructional Support, School Crime Report  . . . 1,222,000


Provisions:

1. Of the funds appropriated by this item,  $321,000
 
$371,000   shall be available to the State Department of
Education for training and monitoring activities associated with the
school crime reporting program pursuant to Chapter 1.2 (commencing
with Section 628) of Title 15 of Part 1 of the Penal Code. The funds
described in this provision shall be used only for the direct costs
to
administer that school crime reporting program, and for indirect
costs
of the program at the rate approved by the United States Department
of Education.  The amount specified in this provision includes
$50,000 that shall be available for costs associated with the
production
of the school crime report. 

2. Of the funds appropriated by this item,  $901,000
 
$851,000   shall be allocated by the State Department of
Education to the Butte County Office of Education pursuant to a
contract entered into between the department and the Butte County
Office of Education for the performance of other activities
associated
with the school crime reporting program identified in Provision 1.

6110-005-0001--For support of Department of Education, as allocated
by the Department of Education to the State Special Schools, Program
10.60.040  . . . 22,639,000

Schedule:

(a) 10.60.040-Instruction  . . . 23,226,000

(1) 10.60.040.001-School for the Blind, Fremont  . . . 3,351,000

(2) 10.60.040.002-School for the Deaf, Fremont  . . . 10,525,000

(3) 10.60.040.003-School for the Deaf, Riverside  . . . 9,350,000

(b) Reimbursements  . . . -587,000

Provisions:

1. Of the amount appropriated by this item, $362,000 shall be
available for the assessment centers at the State Special Schools.

2. Of the amount appropriated by this item, $358,000 shall be used
for
the provision of a four-week extended session in the State Special
Schools for the Deaf in Fremont and Riverside and the State Special
School for the Blind in Fremont.

3. Of the amount appropriated by this item, up to $13,000 is provided

for payment of energy service contracts in connection with the
issuance of Energy Conservation Efficiency Revenue Bonds.

6110-006-0001--For support of Department of Education (Proposition
98), as allocated by the Department of Education to the State Special

Schools  . . . 27,075,000

Schedule:

(a) 10.60.040-Instruction, State Special Schools  . . . 31,477,000

(1) 10.60.040.001-School for the Blind, Fremont  . . . 3,913,000

(2) 10.60.040.002-School for the Deaf, Fremont  . . . 10,551,000

(3) 10.60.040.003-School for the Deaf, Riverside  . . . 9,447,000

(7) 10.60.040.007-Diagnostic Centers  . . . 7,566,000

(b) Reimbursements  . . . -4,251,000

(c) Amount payable from the California State Lottery Education Fund
(Item 6110-006-0814)  . . . -151,000

Provisions:

1. On or before January 15 of each year, the superintendent of each
State Special School shall report to each school district the number
of
pupils from that district who are attending a State Special School
and
the estimated payment due on behalf of the district for those pupils
pursuant to Section 59300 of the Education Code. The Controller shall

withhold from the State School Fund in the first principal
apportionment of that fiscal year the amount due from each school
district, as reported to the Controller by the Superintendent of
Public
Instruction. The amount withheld shall be transferred from the State
School Fund to this item. The Superintendent of Public Instruction is

authorized to adjust the estimated payments required after the close
of
the fiscal year by reporting to the Controller the information needed
to
make the adjustment.

2. Of the funds appropriated by this item, $552,000 shall be used for

the provision of a four-week extended session in the State Special
Schools for the Deaf in Fremont and Riverside and the State Special
School for the Blind in Fremont.

6110-006-0814--For support of Department of Education, for payment
to Item 6110-006-0001, payable from the California State Lottery
Education Fund  . . . 151,000

Provisions:

1. All funds received pursuant to Proposition 37 that are allocable
to
                                                          the State
Special Schools pursuant to Section 8880.5 of the
Government Code, and that are in excess of the amount appropriated
in this item, are hereby appropriated in augmentation of this item.

6110-007-0001--For support of Department of Education, Program
20.20.010-Instructional Materials Management and
Distribution--Curriculum Frameworks and Instructional Materials  . .

. 100,000

Provisions:

1. Funds appropriated by this item shall be used only for direct
costs
to conduct biennial state adoptions of basic instructional materials
pursuant to Section 60200 of the Education Code and for indirect
costs
for that purpose at the rate approved by the United States Department

of Education.

6110-008-0001--For support of Department of Education, as allocated
by the Department of Education to the State Special Schools for
student transportation allowances, Program 10.60.040  . . . 1,064,000


Provisions:

1. Funds appropriated by this item are in lieu of funds that
otherwise
would be transferred from the General Fund to Section A of the State
School Fund in accordance with Sections 14007 and 41301.5 of the
Education Code.

6110-009-0001--For support of the Department of Education, Program
20.10-Curriculum Services  . . . 82,000

Provisions:

1. Funds appropriated by this item shall be used only for direct
costs
to employ a reading specialist (consultant level) to improve reading
in
the elementary grade levels and for indirect costs for that purpose
at
the rate approved by the United States Department of Education.

6110-011-0001--For support of Department of Education, Program
10.10-School Apportionments, Principal Apportionments System  . .
. 1,440,000

Provisions:

1. No funds appropriated by this item may be expended to redesign
and rewrite the principal apportionment system unless the Department
of Finance and the Department of Information Technology have
approved the Request For Proposal (RFP) prepared by the State
Department of Education before the RFP is submitted to prospective
contractors for this project.

6110-013-0001--For support of Department of Education, Program
10.10-Audit Resources  . . . 475,000

Provisions:

1. Notwithstanding any other provision of law, no funds shall be
expended from this item without prior approval from the Department
of Finance.

6110-015-0001--For support of Department of Education, Program
20.20.020--Instructional Materials Management and Distribution  . .
. 370,000

Provisions:

1. Funds appropriated by this item are for transfer by the
Controller,
to the State Instructional Materials Fund, for allocation during the
1998-99 fiscal year pursuant to Article 3 (commencing with Section
60240) of Chapter 2 of Part 33 of the Education Code. These funds
shall be transferred to the State Instructional Materials Fund by the

Controller in amounts claimed by the Department of Education.

2. Funds appropriated by this item for the Instructional Materials
Management and Distribution Program shall be transferred for direct
disbursement by the Department of Education from the State
Instructional Materials Fund.

6110-021-0001--For support, Department of Education, Program
30.20--Child Nutrition--Nutrition Education Projects  . . . 601,000

6110-101-0231--For local assistance, Department of Education,
Program 20.10.045-Instructional Support, for county offices of
education, payable from the Health Education Account, Cigarette and
Tobacco Products Surtax Fund  . . . 3,800,000

6110-101-0349--For local assistance, Department of Education,
Program 20-Instructional Support, for allocation to the Fiscal Crisis

and Management Assistance Team for the purpose of administering
the California School Information Services program  . . . 3,000,000

Provisions:

1. Of the amount appropriated by this item, an amount equal to 8
percent or $500,000, whichever is greater, shall be available for
purposes of implementing the Student-Friendly Services Through
Technology project.

2.  In addition to the $3,000,000 appropriated by this item, moneys
deposited in the Educational Telecommunications Fund during the
1998-99 fiscal year pursuant to Provision 3 that are in excess of
that
amount are also hereby appropriated for the purposes specified in
this
item. However, the additional funds appropriated by this provision
from the excess amounts appropriated in Provision 3 may not exceed
$7,000,000.

3. Notwithstanding Section 10554 of the Education Code, for the
1998-99 fiscal year, the Controller shall transfer the following
amounts
from the General Fund into the Educational Telecommunications Fund
for allocation pursuant to this item:

(a) The lesser of $10,000,000 or the actual amount certified by the
Superintendent of Public Instruction as reductions made to
apportionments in the 1998-99 fiscal year for repayments of prior
year
excess apportionments identified pursuant to:

(1) Audit settlements for the Hacienda La Puente Unified School
District.

(2) Repayments made pursuant to Chapter 789 of the Statutes of 1997.


(3) Other audit settlements for excess apportionments identified as a

result of audits, investigations, or inquiries.

This amount shall be reflected as an appropriation from the General
Fund applying towards satisfaction of the Proposition 98 guarantee in

the 1998-99 fiscal year and not in any other fiscal year.

6110-101-0814--For local assistance, Department of Education,
Program 10.10, for allocation by the State Controller in accordance
with Government Code Section 8880.5, as enacted by the voters in
Proposition 37 at the November 1984 general election, payable from
the California State Lottery Education Fund  . . . 754,986,000

Provisions:

1. All funds received pursuant to Proposition 37 that are allocable
to
local education agencies that serve pupils in kindergarten or any of
grades 1 to 12, inclusive, pursuant to Section 8880.5 of the
Government Code, and that are in excess of the amount appropriated
in this item, are hereby appropriated in augmentation of this item.

6110-101-0890--For local assistance, Department of Education, Title
VI of the Elementary and Secondary Education Act, payable from the
Federal Trust Fund  . . . 35,461,000

Schedule:

(a) 10-Instruction  . . . 35,182,000

(b) 20-Instructional support  . . . 279,000

6110-101-0975--For local assistance, Department of Education,
Program 20.40.040--Library and Learning Resources, payable from the
California Public School Library Protection Fund  . . . 
345,000

 661,000 

Provisions:

1. Subject to the conditions of Article 6 (commencing with Section
18175) of Chapter 2 of Part 11 of the Education Code, and based on
increases in the funds deposited in the California Public School
Library Protection Fund, the appropriation made by this item may be
increased subject to the approval of the Department of Finance.

6110-102-0231--For local assistance, Department of Education,
Program 20.10.045-Instructional Support, for local assistance,
payable
from the Health Education Account, Cigarette and Tobacco Products
Surtax Fund  . . . 28,553,000

6110-102-0890--For local assistance, Department of Education,
Program 20.60.038-Learn and Serve America Program, payable from
the Federal Trust Fund  . . . 2,131,000

6110-103-0001--For local assistance, Department of Education
(Proposition 98), Program 10.10.001.005--School Apportionments for
transfer to Section A of the State School Fund, for the purposes of
Section 8152 of the Education Code  . . . 8,256,000

Provisions:

1. Notwithstanding Section 8154 of the Education Code, or any other
provision of law, the funds appropriated by this item shall be the
only
funds available for and allocated by the Superintendent of Public
Instruction for the apprentice programs operated by school districts
and county offices of education.

2. Notwithstanding Section 8152 of the Education Code, each
60-minute hour of teaching time devoted to each indentured apprentice

enrolled in and attending classes of related and supplemental
instruction as provided under Section 3074 of the Labor Code shall be

reimbursed at the rate of $4.22 per hour. For purposes of this
provision, each hour of teaching time may include up to 10 minutes
for
passing time and breaks.

3. No school district or county office of education shall use funds
allocated pursuant to this item to offer any new or expanded
apprentice
program unless the program has been approved by the Superintendent
of Public Instruction.

4. The Superintendent of Public Instruction shall report to the
Department of Finance and the Legislature not later than October 1,
1998, on the amount of funds expended for and the hours of related
and supplemental instruction offered in the apprentice program during

the 1997-98 fiscal year, with information to be provided by the
school
district, county office of education, program sponsor, and trade.
Expenditure information shall distinguish between direct and indirect

costs, including administrative costs funded for the State Department

of Education, school districts, and county offices of education. In
addition, the report shall identify the hours of related and
supplemental
instruction proposed for the 1998-99 and 1999-2000 fiscal years by
the
school district, county office of education, program sponsor, and
trade.
As a condition of receiving funds for the apprenticeship program,
school districts and county offices of education shall report to the
Superintendent of Public Instruction the information necessary for
the
completion of this report.

5. Notwithstanding Article 8 (commencing with Section 8150) of
Chapter 1 of Part 6 of the Education Code, or any other provision of
law, the total number of hours eligible for state reimbursement in
apprentice programs operated by school districts and county offices
of
education shall be limited to an amount equal to the amount of the
total
appropriation made by this item divided by the hourly rate specified
in Provision 2. The Superintendent of Public Instruction shall have
the
authority to determine which apprentice programs, and which hours
offered in those programs, are eligible for reimbursement.

6110-103-0890--For local assistance, Department of Education,
Program 41.20.030.003--Robert C. Byrd Honors Scholarship Program,
payable from the Federal Trust Fund  . . . 4,643,000

6110-104-0001--For local assistance, Department of Education
(Proposition 98), Program 10.10.011--School Apportionments, for
transfer to Section A of the State School Fund, for summer school
programs pursuant to Section 42239 of the Education Code  . . .
176,793,000

Schedule:

(a) Program 10.10.011.003-School apportionments, for remedial
summer school programs, for the purposes of Section 42239 of the
Education Code  . . . 65,315,000

(b) Program 10.10.011.004-School apportionments, for core academic
summer school programs, for the purposes of Section 42239 of the
Education Code  . . . 111,478,000

Provisions:

1. Notwithstanding paragraph (1) of subdivision (e) of Section 42239
of the Education Code, or any other provision of law, for the 1998-99

fiscal year a school district's maximum entitlement for pupil
attendance in summer school programs offered pursuant to paragraph
(2) of subdivision (d) of Section 42239 of the Education Code shall
be
an amount equal to 7 percent of the district's enrollment for the
prior
fiscal year, times 120 hours, times the hourly rate for the 1998-99
fiscal year.

2. Notwithstanding subdivision (e) of Section 42239 of the Education
Code, for the 1998-99 fiscal year the Superintendent of Public
Instruction shall allocate a minimum of $6,644 for supplemental
summer school programs in each school district for which the prior
fiscal year enrollment was less than 500 and that, in the 1998-99
fiscal
year, offers at least 1,500 hours of supplemental summer school
instruction. A small school district, as described above, that offers
less
than 1,500 hours of supplemental summer school offerings shall
receive a proportionate reduction in its allocation. For the purpose
of
this provision, supplemental summer school programs shall be defined
as programs authorized under paragraph (2) of subdivision (d) of
Section 42239 of the Education Code.

3. (a) Notwithstanding paragraph (1) of subdivision (e) of Section
42239 of the Education Code, or any other provision of law, the
Superintendent of Public Instruction shall reallocate to any school
district any unexpended balance of the appropriations made for the
1998-99 fiscal year for reimbursement for actual pupil attendance in
summer school programs authorized under paragraph (2) of
subdivision (d) of Section 42239 of the Education Code. In no event
shall any district receive reimbursement for pupil attendance in
summer school programs in excess of 10 percent of the district's
enrollment for the prior fiscal year, multiplied by 120 hours,
multiplied
by the hourly rate for the 1998-99 fiscal year.

(b) After any reallocation is made pursuant to subdivision (a) of
this
provision, the Superintendent of Public Instruction shall reallocate
any
unexpended balance of the appropriation specified in Schedule (b) of
this item in the following priority:

(1) For the purposes of funding any deficiencies, for the 1998-99
fiscal
year, in remedial summer school programs authorized pursuant to
paragraph (1) of subdivision (d) of Section 42239 of the Education
Code.

(2) For the purposes of funding general vocational work experience
education for the 1998-99 fiscal year authorized pursuant to
paragraph
(3) of subdivision (d) of Section 42239 of the Education Code.

6110-105-0001--For local assistance, Department of Education
(Proposition 98), for transfer to Section A of the State School Fund
for
the purposes of Article 1 (commencing with Section 52300) of
Chapter 9 of Part 28 of the Education Code  . . . 302,769,000

Schedule:

(a) 10.10.004-Instruction Program 10.10.004-School Apportionments,
Regional Occupational Centers and Programs  . . .   303,930,000

(b) Reimbursements  . . . -1,161,000

Provisions:

1. Notwithstanding any other provision of law, the funds appropriated

by this item are for transfer by the Controller to Section A of the
State
School Fund, in lieu of the amount that otherwise would be
appropriated for transfer from the General Fund in the State Treasury

to Section A of the State School Fund for the 1998-99 fiscal year
pursuant to Sections 14002 and 14004 of the Education Code, in an
amount as needed for apportionment pursuant to Article 1
(commencing with Section 52300) of Chapter 9 of Part 28 of the
Education Code.

2. Funds appropriated by this item shall be apportioned by the
Superintendent of Public Instruction pursuant to Article 1.5
(commencing with Section 52335) of Chapter 9 of Part 28 of the
Education Code.

3. Because Chapter 482 of the Statutes of 1984 was chaptered after
Chapter 268 of the Statutes of 1984, the Legislature's intent
regarding
the eligibility of regional occupational centers and programs for
incentive funding for a longer instructional year under Section 46200

of the Education Code was not carried out. It is the intent of the
Legislature that regional occupational centers and programs not be
eligible for that incentive funding.

   Notwithstanding any other provision of law, the funds appropriated

by this item may not be expended for the purposes of providing or
continuing incentive funding for a longer instructional year pursuant

to Section 46200 of the Education Code.

4. Notwithstanding any other provision of law, funds appropriated by
this item for average daily attendance (ADA) generated by
participants
in welfare-to-work activities under the CalWORKs program
established in Article 3.2 (commencing with Section 11320) of
Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions
Code
may be apportioned on an advance basis to local education agencies
based on anticipated units of ADA if a prior application for this
additional ADA funding has been approved by the Superintendent of
Public Instruction.

5. Of the amount appropriated by this item, $1,161,000 is to fund
remedial education services for participants in welfare-to-work
activities under the CalWORKs program. 

6. Of the amount appropriated for growth in Schedule (a) of this
item,
$22,300 is for the San Juan School District Regional Occupational
Center/Program. 

6110-106-0001--For local assistance, Department of Education
(Proposition 98), Program 10.10.011.004--School Apportionments, for
transfer to Section A of the State School Fund, for core academic
afterschool and summer school programs  . . .  100,000,000

 125,000,000 

Provisions: 

1. The funds appropriated in this item shall be available to fund
afterschool, Saturday, or summer school programs pursuant to
legislation enacted during the 1997-98 Regular Session that becomes
operative on or before January 1, 1999.  

1. Of the funds appropriated by this item, $75,000,000 is available
to
fund summer school instruction pursuant to legislation enacted during

the 1997-98 Regular Session that becomes operative on or before
January 1, 1999.

2. Of the funds appropriated by this item, $50,000,000 is available
to
fund afterschool programs pursuant to legislation enacted during the
1997-98 Regular Session that becomes operative on or before January
1, 1999. 

6110-107-0001--For local assistance, Department of Education
(Proposition 98), Program 10.10--County Offices of Education Fiscal
Oversight  . . . 3,630,000

Schedule:

(a) 10.10.002-COE Oversight  . . . 1,500,000

(b) 10.10.005-FCMAT  . . . 1,480,000

(c) 10.10.015-Interim Reporting  . . . 150,000

(d) 10.10.016-Staff Development  . . . 500,000

Provisions:

1. The funds appropriated in Schedule (a) of this item are for the
purposes provided in paragraph (1) of subdivision (a) of Section 29
of
Chapter 1213 of the Statutes of 1991.

2. Of the funds appropriated in Schedule (b) of this item, $1,100,000

shall be allocated by the Controller directly to a county office of
education, selected pursuant to subdivision (a) of Section 42127.8 of

the Education Code to oversee Fiscal Crisis and Management
Assistance Team (FCMAT) responsibilities with respect to these
funds, to meet the costs of participation under Section 42127.8 of
the
Education Code.

   The remaining $380,000 appropriated in Schedule (b) shall be
allocated to FCMAT for the purpose of providing, through computer
technology, financial and demographic information that is interactive

and immediately accessible to all local education agencies to assist
them in their decisionmaking process. To ensure a completely
integrated system, this computer information should be developed in
collaboration with the State Department of Education, and should be
compatible with the hardware and software of the State Department of
Education, so that this information may also assist state level
policymakers in making comparable standardized financial
information available to the local education agencies and the public.


3. The funds appropriated in Schedule (c) of this item are for the
increased responsibility of county offices of education for oversight
of
school districts with audit exceptions, districts with qualified or
negative interim reports, districts that may be unable to meet
financial
obligations for the current or subsequent two years, or districts
with
disapproved budgets, as provided under Chapter 924, Statutes of 1993.

Allocation of such funds shall be administered by the Fiscal Crisis
and
Management Assistance Team (FCMAT) on a reimbursement basis
and all reimbursements shall be subject to the approval of both the
Department of Finance and the Department of Education.

4. The amount appropriated in Schedule (c) shall be available for
expenditure for the 1998-99 and 1999-2000 fiscal years. Any
unexpended balance as of September 1, 1999 shall be available
through July 30, 2000 for staff development purposes, pursuant to
Provision 5 of this item.

5. The funds appropriated in Schedule (d) of this item are for the
purpose of providing staff development to local education agency
school finance and business personnel, as provided in Section 42127.8

of the Education Code. The funds appropriated in Schedule (d) shall
be allocated by the Controller directly to a county office of
education
selected pursuant to subdivision (a) of Section 42127.8 to oversee
FCMATs responsibilities with respect to these funds.

6. The funds appropriated by this item shall be allocated in
accordance
with the above schedule unless a revision to the allocations
contained
herein has been approved by the Department of Finance. The
Department of Finance may not authorize any such revision sooner
than 30 days after notification in writing of the necessity therefor
to
the chairperson of the committee in each house that considers
appropriations and the Chairperson of the Joint Legislative Budget
Committee, or not sooner than whatever lesser time the chairperson of

the joint committee, or his or her designee, may in each instance
determine.

6110-109-0001--For local assistance, Department of Education
(Proposition 98), Program 20.60--Gang Risk Intervention Program
pursuant to Chapter 5.5 (commencing with Section 58730) of Part 31
of Division 4 of Title 2 of the Education Code  . . . 3,000,000

6110-111-0001--For local assistance, Department of Education
(Proposition 98), for transfer to Section A of the State School Fund,

Program 10.10.006-School Apportionment-Transportation  . . .
2,000,000

Provisions:

1. The funds appropriated by this item are for equalization of
home-to-school transportation funding, pursuant to Section 44 of
Chapter 928, Statutes of 1997.

6110-111-0890--For local assistance, Department of Education,
Elementary and Secondary Education Act, Title I--Program 20.10.056
Character Education Program, payable from the Federal Trust Fund
. . . 175,000

6110-112-0001--For local assistance, Department of Education
(Proposition 98), for transfer to Section A of the State School Fund,

Program 20.60--Staff Development Day Buyout  . . . 
400,000,000

 195,000,000 

Provisions:

1. The funds appropriated by this item are available to buy back
staff
development days, pursuant to legislation enacted during the 1997-98
Regular Session that becomes operative after January 1, 1998, and on
or before January 1, 1999.

6110-112-0890--For local assistance, Department of Education,
Program 20.60.036--Public Charter Schools, payable from the Federal
Trust Fund  . . . 3,365,000

Provisions:

1. Of the funds appropriated by this item, $200,000 is for transfer
by
the Controller to the Charter School Revolving Loan Fund.

6110-113-0001--For local assistance, Department of Education
(Proposition 98), for purposes of a pupil testing program  . . .
55,969,000

Schedule:

(a) 20.70.030.001-Golden State Examination  . . . 10,882,000

(b) 20.70.030.002-Statewide Assessment  . . . 1,002,000

(c) 20.70.030.004-Career Technical Assessment  . . . 800,000

(d) 20.70.030.005-Assessment Review and Reporting  . . . 3,585,000

(e) 20.70.030.006-STAR Program  . . . 39,700,000

Provisions:

1. The funds appropriated in this item shall be for the pupil testing

program authorized by Chapter 5 (commencing with Section 60600)
and Chapter 6 (commencing with Section 60800) of Part 33 of the
Education Code, and Sections 4 and 5 of Chapter 975 of the Statutes
of 1995, as amended by Chapters 69 and 920 of the Statutes of 1996,
and for the pupil testing program (STAR Program) authorized under
Article 4 (commencing with Section 60640) of Chapter 5 of Part 33 of
the Education Code  , as amended by Chapter 828 of the Statutes
of 1997  .

3. Notwithstanding any other provision of law, any funds appropriated

by this item, but not expended for development of a statewide
assessment test in the 1998-99 fiscal year, are available for
expenditure in the 1999-2000 fiscal year for that purpose.

4. Funds appropriated in Schedule (e) of this item for the STAR
Program shall be available for STAR Program costs for the 1998-99
fiscal year. In addition, funds are available in augmentation of Item

6110-113-0001 of Section 2.00 of the Budget Act of 1997, as
appropriated pursuant to Section 9 of Chapter 886 of the Statutes of
1997, provided that the State Department of Education certifies in
writing to the Department of Finance that additional funds are
necessary to cover STAR Program costs for the 1997-98 fiscal year
and the Department of Finance determines that additional funds are
warranted.

5. Primary language tests administered pursuant to subdivisions (f)
and (g) of Section 60640 of the Education Code shall be subject to
the
reporting requirements specified in subdivisions (b), (c), (d), and
(e)
of Section 60641 of the Education Code.

 6110-114-0001--For local assistance, Department of Education,
(Proposition 98), for transfer to the Controller, for reimbursement
of
claims received pursuant to Sections 42243.6 and 42247 of the
Education Code, (court-ordered desegregation) Program
10.10.018-School Apportionments  . . . 37,096,000

Schedule:

(a) 10.10.018.005-Instruction: School Apportionments (Court Ordered
Desegregation)--Bakersfield Unified School District  . . . 410,000

(b) 10.10.018.010-Instruction: School apportionments (Court Ordered
Desegregation)--Los Angeles Unified School District  . . . 21,204,000


(c) 10.10.018.070-Instruction: School Apportionments (Court Ordered
Desegregation)--Menlo Park City Elementary School District  . . .
11,000

(d) 10.10.018.040-Instruction: School Apportionments (Court Ordered
Desegregation)--Palo Alto Unified School District  . . . 209,000

(e) 10.10.018.075-Instruction: School Apportionments (Court Ordered
Desegregation)--Ravenswood City Elementary School District  . . .
10,000

(f) 10.10.018.050-Instruction: School Apportionments (Court Ordered
Desegregation)--Redwood City Elementary School District  . . . 13,000


(g) 10.10.019.020-Instruction: School Apportionments-voluntary

desegregation-San Bernardino City Unified School District  . . .
997,000

(h) 10.10.019.022-Instruction: School Apportionments-voluntary
desegregation-San Diego City Unified School District  . . . 1,861,000


(i) 10.10.019.024-Instruction: School Apportionments-voluntary
desegregation--San Francisco Unified School District  . . .
10,573,000

(j) 10.10.018.030-Instruction: School Apportionments (Court Ordered
Desegregation)--San Jose Unified School District  . . . 63,000

(k) 10.10.018.055-Instruction: School Apportionments (Court Ordered
Desegregation)--San Mateo County Superintendent  . . . 12,000

(l) 10.10.018.060-Instruction: School Apportionments (Court Ordered
Desegregation)--Santa Clara County Office of Education  . . . 4,000

(m) 10.10.018.065-Instruction: School Apportionments (Court
Ordered Desegregation)--Sequoia Unified High School District  . . .
125,000

(n) 10.10.018.035-Instruction: School Apportionments (Court Ordered
Desegregation)--Stockton Unified School District  . . . 1,604,000

Provisions:

1. Funds appropriated by this item are for reimbursement of amounts
necessary to pay costs of integration programs in districts initially

mandated by the courts, as defined in Section 2205 of the Revenue and

Tax Code pursuant to any final court order issued after January 1,
1978.

2. The Controller shall allocate funds appropriated by this item in
accordance with provisions of Sections 42243.6 and 42247 of the
Education Code. Pursuant to the provisions of Section 42243.8 of the
Education Code, the Controller shall reimburse claims received
pursuant to Sections 42243.6 and 42247 of the Education Code only
from funds appropriated specifically for that purpose by the
Legislature.

3. School districts may contract with the Controller for the
performance of those audits. All past year actual claims submitted to

the Controller for payment shall be accompanied by any reports issued

by the auditing entity, unless the auditing entity was the
Controller.

4. The Controller shall reimburse only those past year actual claims
that conform with the requirements of Provision 2 of this item.

5. The Controller shall allocate funds appropriated by this item in
accordance with the schedule contained herein, unless revision of
that
schedule has been approved by the Department of Finance. The
Controller shall allocate these funds only for 1998-99 fiscal year
expenditures claimed by local education agencies.

6. The Department of Finance may not authorize any revisions to the
schedule contained herein sooner than 30 days after notification in
writing of the necessity therefor to the chairperson of the committee

in each house that considers appropriations and the Chairperson of
the
Joint Legislative Budget Committee, or not sooner than whatever
lesser time the Chairperson of the Joint Legislative Budget
Committee,
or his or her designee, may, in each instance, determine.

7. Funds appropriated in this item may not be used to reimburse local

education agency claims for facilities lease costs, school
construction,
reconstruction, replacement of facilities, purchase of existing
facilities,
purchase of land, or the performance of deferred maintenance
activities on facilities.

8. As a condition of receiving funding under this item, by March 1,
1999, each school district that received reimbursement for the costs
of
a desegregation program shall submit to the State Department of
Education program outcome data over the preceding three years, or
since the inception of its program, whichever period of time is less.

The data shall include the ethnic distribution of pupils at schools
supported with desegregation funds, and indicators of pupil success
at
those schools, such as test scores, graduation rates, or dropout
rates.
School districts may submit evaluation reports that already exist or
are
otherwise required by a court to comply with this requirement,
provided that the reports contain the information specified above.
School districts also shall indicate whether their desegregation
programs were initiated voluntarily, or as a result of a consent
decree.


6110-115-0001--For local assistance, Department of Education, for
transfer to the Controller (Proposition 98), Voluntary Desegregation,

for reimbursement of claims received pursuant to Sections 42247 and
42249 of the Education Code  . . . 19,314,000

Schedule:

(1) 10.10.019.088-Grant High School District  . . . 12,390,000

(2) 10.10.019.089-Sausalito Elementary School District  . . . 789,000


(3) 10.10.019.090-Lynwood Unified School District  . . . 4,392,000

(4) 10.10.019.091-Sacramento City Unified School District  . . .
1,743,000

Provisions:

1. Funds appropriated by this item are for reimbursement of amounts
necessary to pay the costs of desegregation programs, as defined in
Section 42249 of the Education Code, initiated voluntarily by local
education agencies and for the costs of audits as required by
Provision
2 of this item.

2. Before submittal to the Controller for payment, school districts
shall
subject their past year actual claims to audit, in accordance with
standards utilized by the Controller in prior years for the audit of
past
year actual desegregation claims, to ensure that the claims comply
with
the requirements of Sections 42247, 42247.1, 42248, 42249, and
44249.2 of the Education Code. School districts may contract with the

Controller for the performance of those audits. All past year actual
claims submitted to the Controller for payment shall be accompanied
by any reports issued by the auditing entity, unless the auditing
entity
was the Controller.

3. The Controller shall reimburse only those past year actual claims
that conform with the requirements of Provision 2 of this item.

4. The Controller shall allocate funds appropriated by this item in
accordance with Section 42247 of the Education Code. The Controller
shall reimburse these claims only from funds appropriated
specifically
for that purpose by the Legislature.

5. The Controller shall allocate funds appropriated by this item in
accordance with the schedule contained herein, unless a revision of
that schedule has been approved by the Department of Finance. The
Controller shall allocate these funds only for  1998-99
fiscal year
   the 1997-98 fiscal year and 1998-99 fiscal year

expenditures claimed by local education agencies pursuant to Sections

42247 and 42249 of the Education Code.

6. The Department of Finance may not authorize any revisions to the
schedule contained herein sooner than 30 days after notification in
writing of the necessity therefor to the chairperson of the committee

in each house that considers appropriations and the Chairperson of
the
Joint Legislative Budget Committee, or not sooner than whatever
lesser time the chairperson of the joint committee, or his or her
designee, may in each instance determine.

7. Funds appropriated by this item may not be used to reimburse local

education agency claims for facilities lease costs, school
construction,
reconstruction, replacement of facilities, purchase of existing
facilities,
purchase of land, or the performance of deferred maintenance
activities on facilities.

8. Effective July 1, 1991, and notwithstanding any other provision of

law to the contrary, no school district shall be required to comply
with
Sections 90 to 101, inclusive, of Title 5 of the California Code of
Regulations. Any costs incurred after that date in compliance with
those regulations shall be deemed to be incurred voluntarily and
shall
not be reimbursable as a state-mandated local program. Nothing in
this
provision shall be interpreted to deny reimbursement of claims for
court-ordered or voluntary desegregation pursuant to Sections
42243.6,
42247, and 42249 of the Education Code.

9. As a condition of receiving funding under this item, by March 1,
1999, each school district that receives reimbursement for the costs
of
a desegregation program shall submit to the State Department of
Education program outcome data over the preceding three years, or
since the inception of its program, whichever period of time is less.

The data shall include the ethnic distribution of pupils at schools
supported with desegregation funds, and indicators of pupil success
at
those schools, such as test scores, graduation rates, or dropout
rates.
Districts may submit evaluation reports that already exist or are
otherwise required by a court to comply with this requirement,
provided that the reports contain the information specified above.
Districts also shall indicate whether their desegregation programs
were
initiated voluntarily  ,   or as a result of a
consent decree.

6110-116-0001--For local assistance, Department of Education,
(Proposition 98), for transfer to the Controller, for reimbursement
of
claims received pursuant to Sections 42243.6 and 42247 of the
Education Code, (court-ordered desegregation) Program
10.10.018-School Apportionments  . . . 14,000

Provisions:

1. Funds appropriated in this item are for reimbursement of amounts
necessary to pay costs of integration programs in districts initially

mandated by the courts, as defined in Section 2205 of the Revenue and

Tax Code pursuant to any final court order issued after January 1,
1978.

2. The Controller shall allocate funds appropriated in this item in
accordance with provisions of Sections 42243.6 and 42247 of the
Education Code. Pursuant to the provisions of Section 42243.8 of the
Education Code, the Controller shall reimburse claims received
pursuant to Section 42243.6 and 42247 of the Education Code only
from funds appropriated specifically for that purpose by the
Legislature.

3. School districts may contract with the Controller for the
performance of those audits. All past year actual claims submitted to

the Controller for payment shall be accompanied by any reports issued

by the auditing entity, unless the auditing entity was the
Controller.

4. The Controller shall reimburse only those past year actual claims
that conform with the requirements of Provision 2 of this item.

5. The Controller shall allocate funds appropriated by this item in
accordance with the schedule contained herein, unless a revision of
that schedule has been approved by the Department of Finance. The
Controller shall allocate these funds only for 1998-99 fiscal year
expenditures claimed by local education agencies.

6. The Department of Finance may not authorize any revisions to the
schedule contained herein sooner than 30 days after notification in
writing of the necessity therefore to the chairperson of the
committee
in each house that considers appropriations and the Chairperson of
the
Joint Legislative Budget Committee, or not sooner than whatever
lesser time the Chairperson of the Joint Legislative Budget
Committee,
or his or her designee, may, in each instance, determine.

7. Funds appropriated in this item may not be used to reimburse local

education agency claims for facilities lease costs, school
construction,
reconstruction, replacement of facilities, purchase of existing
facilities,
purchase of land, or the performance of deferred maintenance
activities on facilities.

8. As a condition of receiving funding under this item, by March 1,
1999, each school district that receives reimbursement for the costs
of
a desegregation program shall submit to the State Department of
Education program outcome data over the preceding three years, or
since the inception of its program, whichever period of time is less.

The data shall include the ethnic distribution of pupils at schools
supported with desegregation funds, and indicators of pupil success
at
those schools, such as test scores, graduation rates, or dropout
rates.
School districts may submit evaluation reports that already exist or
are
otherwise required by a court to comply with this requirement,
provided that the reports contain the information specified above.
School districts also shall indicate whether their desegregation
programs were initiated voluntarily, or as a result of a consent
decree.

6110-117-0001--For local assistance, State Department of Education,
Program 10.70--Vocational Education, in lieu of the amount that
otherwise would be appropriated pursuant to subdivision (b) of
Section
19632 of the Business and Professions Code  . . . 562,000

Provisions:

1. Of the funds appropriated by this item, $50,000 shall be available

to contract with the California Association of Student Councils for
the
purpose of providing leadership development and training to pupils in

grades 3 to 12, inclusive. 

6110-118-0001--For local assistance, Department of Education
(Proposition 98), Program 10.10.001.006--School
Apportionments--Various  . . . 50,000,000

Provisions:

1. The funds appropriated by this item are available solely to fund
increases in minimum teacher salaries, subject to the establishment
of
that program by legislation enacted during the 1997-98 Regular
Session.

6110-120-0001--For local assistance, Department of Education
(Proposition 98) Program 20.40.100, for the Pupil Dropout Prevention
Program  . . . 1,250,000

6110-121-0001--Foster Youth Programs (Proposition 98)  . . .
3,000,000

Provisions:

1. The funds appropriated by this item are provided for half-year
costs
of expanding the Foster Youth Services program to children residing
in licensed children's institutions, pursuant to Chapter 11
(commencing with Section 42920) of Part 24 of the Education Code
and guidelines developed by the State Department of Education. These
funds shall be allocated on the basis of the number of pupils
residing
in licensed children's institutions in each county, and shall be used
to
supplement, and not supplant, services currently provided to pupils
residing in licensed children's institutions through this program.


6110-123-0001--For local assistance, Department of Education
(Proposition 98)--Low Performing Schools  . . . 50,000,000

Provisions:

1. The amount appropriated by this item shall fund a program to
provide assistance to low performing schools in reaching or exceeding

an acceptable level of school achievement, subject to establishment
of
that program by the enactment of legislation during the 1997-98
Regular Session that becomes operative on or before January 1, 1999.


6110-128-0890--For local assistance, Department of Education,
Program 20.50.030-Eisenhowser Professional Development, payable
from the Federal Trust Fund  . . . 31,873,000

6110-129-0001--For local assistance, Department of Education,
Program 41.00--Community Education-Intergenerational Programs  .
. . 171,000

6110-130-0001--For local assistance, Department of Education,
Program 20.60.100--Advancement via Individual Determination  . . .
1,000,000

6110-131-0001--For local assistance, Department of 
Education,
Program 20.40-College Preparation Grant Program  . . . 30,000,000

Provisions:

1. The funds appropriated by this item are available to fund the
College Preparation Grant Program, subject to the establishment of
that program by legislation enacted during the 1997-98 Regular

      Education, Program 20.40--College preparation
program
. . . 30,000,000

Provisions:

1. The funds appropriated by this item are available to fund one or
more college preparation programs subject to the enactment of
legislation during the 1997-98 Regular   Session that becomes
operative on or before January 1, 1999.

6110-136-0890--For local assistance, Department of Education,
payable from the Federal Trust Fund  . . . 860,319,000

Schedule:

(a) 10.30.060--Title I-ESEA  . . . 841,677,000

(b) 10.30.065--Stewart B. McKinney Homeless Children Education
. . . 2,992,000

(c) 20.60.022-Improve School Effectiveness-Comprehensive School
Reform Demonstration Grant Program  . . . 15,650,000

Provisions:

1. The State Department of Education, for the purposes of the
transitional assessment system required by Title 1 of the federal
Improving America's Schools Act of 1994, shall define a "program
improvement school," during the 1998-99 fiscal year, as a school that

ranks among the lowest in the state on the assessment used in the
Standardized Testing and Reporting (STAR) Program (Art. 4
(commencing with Sec. 60640), Ch. 5, Pt. 33, Ed. C.). A school
district may also identify a school that does not meet this criterion
as
a "program improvement school" during that fiscal year if 60 percent
or more of the school's pupils are performing, as determined by
district's assessment system, below the standards adopted by the
district.

2. The funds appropriated in Schedule (c) of this item shall be used
to
fund the costs of the Comprehensive School Reform Demonstration
Program. These funds shall be allocated only when the State Board of
Education has provided notice to the Department of Finance that the
board's application on behalf of the state has been approved by the
United States Department of Education.

6110-139-0001--For local assistance, Department of Education
(Proposition 98), Program 10.10--School Apportionments, Pupil
Residency Verification  . . . 157,000

Provisions:

1. Funds appropriated by this item are for the purpose of assisting
school districts that are adjacent to the international border with
their
pupil residency verification, consistent with the intent of Chapter
309,
Statutes of 1995.

6110-141-0890--For local assistance, Department of Education,
Program 10.30.010--Instruction, Title I of the Elementary and
Secondary Education Act-- Migrant Education, payable from the
Federal Trust Fund  . . . 107,448,000

6110-142-0890--For local assistance, Department of Education, Goals
2000, payable from the Federal Trust Fund  . . . 57,692,000

Schedule:

(a) 20.10.003-Reading Improvement  . . . 36,492,000

(b) 20.60.030-Local Improvement Plans  . . . 15,200,000

(c) 20.60.050-Student Academic Partnerships  . . . 5,000,000

(d) 20.60.100-Advancement via Individual Determination  . . .
1,000,000

Provisions:

1. The funds appropriated by this item shall be available for
expenditure not sooner than 30 days after an expenditure plan has
been
submitted to the Department of Finance for review and comment. The
department shall review the proposed expenditures to ensure that they

are consistent with federal law.

2. Of the funds appropriated in schedule (a), $6,000,000 is available

only for inservice training in reading instruction for teachers who
are
new employees of a school district in 1998-99 who teach pupils in
grades kindergarten through three, inclusive, pursuant to Chapter
3.45
(commencing with section 44755) of Part 25 of the Education Code.
Notwithstanding paragraphs (b)(1) and (b)(2) of section 44757.4, the
maximum grant amount awarded to a school district shall not exceed
twice the product determined by multiplying (1) $6,000,000 divided
by the number of teachers who are new employees of all school
districts in the state in 1998-99 who teach pupils in grades
kindergarten through three, inclusive, by (2) the number of these
teachers employed in the school district.

3. Of the funds appropriated in schedule (a), $30,942,000 is
available
for the purchase of (1) inservice training in math instruction which
is
consistent with the Math Program Advisory approved by the State
Board of Education, (2) age-level-appropriate reading materials that
are connected to phonics-based reading instruction and (3) inservice
training in reading instruction for teachers of pupils in grades 4 to
12,
inclusive. Funds shall be allocated to school districts pursuant to
Section 44759.5 of the Education Code except that "number of pupils"
in paragraphs (1) and (2) of subdivision (b) shall be deemed to be
the
number of pupils scoring below the fortieth percentile on the
statewide
assessment administered in 1998 pursuant to Article 4 (commencing
with Section 60640) of Chapter 5 of Part 33 of the Education Code.
Notwithstanding any provision of Chapter 3.46 of Part 25 of the
Education Code, funds allocated pursuant to this provision may be
expended for reading inservice training and reading materials, or
just
for inservice training. Funds expended for inservice training in
reading
instruction shall be expended in accordance with the following
sections of Chapter 3.46 of Part 25 of the Education Code, except
that
where these sections read "4 to 8" they shall be deemed to read "4 to

12": Section 44758 (b), Section 44759 (a), (c), (d), (e) and (f),
Section
44759.1, Section 44759.2, Section 44759.3, Section 44759.4, and
Section 44759.6. Further, in order to conduct a program funded
pursuant to this provision in any particular school in a school
district,
the governing board must certify that a phonics-based reading
instructional program is being conducted in the school for pupils
scoring below the twenty-fifth national percentile score on the
statewide assessment, or that such a program shall begin in the
school
as soon as feasible upon completion of the training. The State Board
of Education shall establish criteria governing the purchase by
school
districts of age-level-appropriate reading materials thatare
connected
to phonics-based reading instruction.

4. The funds appropriated in Schedule (b) shall be used to implement
local improvement plans de-veloped from prior years' allocations of
Goals 2000 funds.

5. The funds appropriated in Schedule (c) shall be used for
competitive
grants to local education agencies for preservice training, with
highest
priority for funding given to those agencies that propose to train
and
hire college students as academic tutors for pupils in kindergarten
or
any of grades 1 to 6, inclusive, in the academic areas of
English-language arts and mathematics. For the purposes of these
training activities, local education agencies shall be responsible
for the
day-to-day supervision of tutors, but the agencies may contract with
higher education institutions to recruit, train and provide general
oversight over placement in schools. Higher education institutions
may
permit tutors to receive academic credit for their related field work

experiences in lieu of pay.

6. The funds appropriated in Schedule (d) shall be used for
competitive outreach grants to local education agencies for the
Advancement Via Individual Determination (AVID) program.

6110-149-0001--For local assistance, Department of 
Education,
(Proposition 98), for library materials and science laboratory
materials
and equipment  . . . 230,000,000

Provisions:

1. The amount appropriated in this item shall be allocated to school
districts and county offices of education on the basis of an equal
amount per unit of average daily attendance, as defined in
subdivision
(b) of Section 42238.5 of the Education Code, for the purchase of
school library materials and school science laboratory materials and
equipment.  

    Education (Proposition 98), for school library materials  . . .
158,500,000

Provisions:

1. The funds appropriated by this item are available to fund the
acquisition of school library materials pursuant to legislation
enacted
during the 1997-98 Regular Session that becomes operative on or
before January 1, 1999. 

6110-150-0001--For local assistance, Department of Education
(Proposition 98), for instructional materials for mathematics  . . .

250,000,000

Provisions:

1. Funds appropriated by this item shall be allocated to school
districts
and county offices of education on the basis of an equal amount per
unit of average daily attendance, as defined in subdivision (b) of
Section 42238.5 of the Education Code, for the purchase of (a)
mathematics instructional materials for pupils enrolled in
kindergarten
and grades 1 to 8, inclusive, that are adopted by the State Board of
Education (SBE) and are aligned with the state content standards in
mathematics adopted by the SBE, and (b) instructional materials for
pupils enrolled in grades 9 to 12, inclusive, that are aligned with
the
state content standards adopted by the SBE and that are adopted by
the
district board, as defined in subdivision (d) of Section 60010 of the

Education Code.

2. If the district board, as defined in Section 60100 of the
Education
Code, has purchased mathematics instructional materials that the
State
Board of Education (SBE) certifies are consistent with the state
content standards, the funds allocated from this item to those school

districts and county offices of education may be used for the
purchase
of other instructional materials approved by the SBE.

6110-152-0001--For local assistance, Department of Education,
Program 10.30.050  . . . 376,000

Provisions:

1. Funds appropriated by this item for Indian Education Centers are
to
carry out the provisions of Article 6 (commencing with Section 33380)

of Chapter 3 of Part 20 of the Education Code.

6110-156-0001--For local assistance, Department of Education
(Proposition 98), for transfer to Section A of the State School Fund,

for allocation by the Superintendent of Public Instruction to school
districts, county offices of education, and other agencies for the
purposes of Proposition 98 educational programs funded by this item,
in lieu of the amount that otherwise would be appropriated pursuant
to
statute  . . .  488,517,000 
 499,667,000 

Schedule:

(a) 10.50.010.001-Adult Education  . . .  479,778,000

 478,428,000 

          (b) 10.50.010.008-Remedial education services for
participants in the
CalWORKs  . . . 17,478,000

(c) Reimbursements-CalWORKs  . . . -8,739,000 

(d) 10.50.010.009-Local Education Agencies--Education Services for
participants in CalWORKs  . . . 12,500,000 

Provisions:

1. Credit for participating in adult education classes or programs
may
be generated by a special day class pupil only for days in which the
pupil has met the minimum day requirements set forth in Section
46141 of the Education Code.

2. The funds appropriated in Schedule (b) constitute the funding for
both remedial education and job training services for participants in

the CalWORKs program (Art. 3.2 (commencing with Sec. 11320), Ch.
2, Pt. 3, Div. 9, W.& I.C.). Funds shall be apportioned by the
Superintendent of Public Instruction for direct instructional costs
only
to school districts and Regional Occupational Centers and Programs
(ROC/Ps) that certify that they are unable to provide educational
services to CalWORKs recipients within their adult education block
entitlement or ROC/P block entitlement, or both. However, of the
funds appropriated by Schedule (b) of this item, an amount not to
exceed $10,000,000, as negotiated through an interagency agreement
between the State Department of Education and the State Department
of Social Services, shall be provided for Adult Education Programs,
and ROC/Ps for the purposes of providing instructional and training
supportive services for CalWORKs eligible members. These services
shall include any of the following: (a) career and educational
guidance
and counseling; (b) training related assessment; (c) transportation
to
the classroom or worksite during training; (d) job readiness training

and services; (e) job development and placement; (f) post-employment
support and followup to ensure job retention; (g) coordination and
referrals to other services provided through the State Department of
Social Services, the Employment Development Department, the
Private Industry Council, community colleges, the Department of
Rehabilitation, the Economic Development Agency, and other
community resources; (h) curriculum and instruction development to
provide short-term integrated programs leading to employment; (i)
staff development costs resulting from policy development and
training occurring between instructional staff and county welfare
agencies in the coordination of the program; and (j) one-time excess
program start up costs. Allocations shall be distributed by the
Superintendent of Public Instruction as equal tatewide dollar
amounts,
with no county receiving less than $25,000, based on the number of
CalWORKs eligible family members served in the county, and subject
to the instructional and training support services needed annually by

each agency as identified in the county CalWORKs Instruction and
Job Training Plan required by Section 10200 of the Education Code.

3. Providers receiving funds under this item for adult basic
education,
English as a Second Language, and English as a Second
Language-Citizenship for legal permanent residents, shall, to the
extent
possible, grant priority for services to immigrants facing the loss
of
federal benefits under the federal Personal Responsibility and Work
Opportunity Reconciliation Act of 1996. Citizenship and
naturalization
preparation services funded by this item shall include, to the extent

consistent with applicable federal law, all of the following: (a)
outreach
services; (b) assessment of skills; (c) instruction and curriculum
development; (d) staff development; (e) citizenship testing; (f)
naturalization preparation and assistance; and (g) regional and state

coordination and program evaluation.

4. Of the federal reimbursements appropriated in Schedule (b),
$230,000 shall be available for transfer to Item 6110-001-0001 for
state operations upon receipt of a plan to develop a data collection
system to obtain information on education and job training services
provided to CalWORKs recipients through Adult Education and
ROC/Ps. The State Department of Education shall work with the State
Department of Social Services to ensure the data collection system
meets the state's CalWORKs information needs regarding education
and job training services provided to CalWORKs recipients. The State
Department of Education shall work with the Department of Finance
and the Legislative Analyst's Office in determining the specific data

elements of the system and shall meet all information technology
reporting requirements of the Department of Information Technology
and the Department of Finance. 

5. The funds appropriated in Schedule (d) of this item shall be
allocated on a one-time basis and be subject to the following:

(a) The funds shall be used only for educational activities for
CalWORKs-eligible recipients. The educational activities shall be
limited to those designed to increase self-sufficiency, job training,
and
work. These activities shall be carried on in accordance with each
local
education agency's plan approved and developed pursuant to Chapter
2 (commencing with Section 10200) of Part 7 of the Education Code.

(b) Notwithstanding any other provision of law, each local education
agency's individual cap for adult education and regional occupational

center and programs (ROC/P's), average daily attendance shall not be
increased as a result of the appropriations made by this section.

(c) Funds may be claimed by local education agencies for services
provided to CalWORKs-eligible recipients pursuant to this section
only if all of the following occur:

(1) Each local education agency has met the terms of the interagency
agreement between the State Department of Education and the
Department of Social Services pursuant to Provision 2 of this item.

(2) Each local education agency has fully claimed its respective
adult
education or ROC/P average daily attendance cap for the current year.


(3) Each local education agency has claimed the maximum allowable
funds available under the interagency agreement pursuant to Provision

2 of this item.

(d) Each local education agency shall be reimbursed at the same rate
as it would otherwise receive for services provided pursuant to this
item or pursuant to Item 6110-105-0001 of Section 2.00 of this act,
and shall comply with the program requirements for adult education
pursuant to Chapter 10 (commencing with Section 52500) of Part 28
of the Education Code, and ROC/P requirements pursuant to Article
1 (commencing with Section 52300) of, and Article 1.5 (commencing
with Section 52335) of, Chapter 9 of, Part 28 of the Education Code,
respectively.

(e) Notwithstanding any other provision of law, funds appropriated in

this section for average daily attendance (ADA) generated by
participants in the CalWORKs program may be apportioned on an
advance basis to local education agencies based on anticipated units
of
ADA if a prior application for this additional ADA funding has been
approved by the Superintendent of Public Instruction.

(f) For purposes of making computations required by Section 8 of
Article XVI of the California Constitution, the appropriation shall
be
deemed to be "General Fund revenues appropriated for school
districts," as defined in subdivision (c) of Section 41202 of the
Education Code, for the 1997-98 fiscal year, and included within the
"total allocations to school districts and community college
districts
from General Fund proceeds of taxes appropriated pursuant to Article
XIIIB," as defined in subdivision (e) of Section 41202 of the
Education Code, for the 1997-98 fiscal year.

(g) The Legislature finds the need for good information on the role
of
local education agencies in providing services to individuals who are

eligible for or recipients of CalWORKs assistance. This information
includes the extent to which local education programs serve public
assistance recipients and the impact these services have on the
recipients' ability to find jobs and become self-supporting.

(h) The State Department of Education shall develop a data and
accountability system to obtain information on education and job
training services provided through state-funded adult education
programs and regional occupational centers and programs. The system
shall collect information on (1) program funding levels and sources;
(2) the types and amounts of services provided to program
participants; (3) characteristics of participants; and (4) pupil and
program outcomes. The State Department of Education shall provide
local providers with a list of required data elements by October 15,
1998. The department shall work with the Department of Finance and
Legislative Analyst's Office in determining the specific data
elements
of the system and shall meet all information technology reporting
requirements of the Department of Information Technology and the
Department of Finance.

(i) As a condition of receiving funds provided in Schedule (b) of
this
item or any other General Fund appropriation made to the State
Department of Education specifically for education and training
services to CalWORKs recipients, local adult education programs and
regional occupational centers and programs shall collect program and
participant data as described in this section and as required by the
State Department of Education. Beginning January 1, 1999, local
providers shall begin collecting the data elements required by the
State
Department of Education. The State Department of Education shall
require that local providers submit to the state aggregate data for
the
period January 1, 1999, through June 30, 1999. The State Department
of Education shall provide to the local providers by October 15,
1998,
a description of the specific reporting requirements for this data.

(j) Beginning July 1, 1999, local providers shall provide data to the

State Department of Education that permits a disaggregation of data
to permit the identification for subgroups of participants of (1)
types
and levels of services, and (2) outcomes. The State Department of
Education shall provide to local providers by July 1, 1999, a
description of the specific re-porting requirements needed to permit
the disaggregation of data.

(k) The State Department of Education shall report on or before March

1, 1999, to the Department of Finance, the Legislative Analyst's
Office, and the budget committees of the Senate and Assembly on its
progress in establishing the data system. In addition, the State
Department of Education shall describe both of the following:

(1) The department's proposed data collection system needed to
implement the disaggregated data system described in subdivision (d).


(2) The department's proposal to consolidate all state data needs for

adult education and regional occupational centers and programs into
one data system that is integrated with the department's California
School Information Services data system. 

6110-156-0890--For local assistance, Department of Education,
Program 10.50.010.001--Adult Education, payable from the Federal
Trust Fund  . . . 39,869,000

Provisions:

1. Of the funds appropriated by this item, $12,570,000 shall be used
for adult basic education for citizenship and naturalization services
for
legal permanent residents who are eligible for naturalization.

  Citizenship and naturalization services shall include, for this
purpose,
to the extent consistent with federal law, all of the following: (a)
outreach services; (b) assessment of skills; (c) instruction and
curriculum development; (d) staff development; (e) citizenship
testing;
(f) naturalization preparation and assistance; and (g) regional and
state
coordination and program evaluation. The providers of the citizenship

and naturalization services, for the purposes of this provision,
shall be
those community-based organizations, community colleges, and adult
education programs approved for this purpose by the State Department
of Education and the federal Immigration and Naturalization Service.


2. Under any grant awarded by the State Department of Education
under this item to a qualifying community-based organization to
provide adult basic education in English as a Second Language and
English as a Second Language-Citizenship classes, the department
shall make an initial payment to the organization of 25 percent of
the
amount of the grant. In order to qualify for an advance payment, a
community-based organization shall submit an expenditure plan and
shall guarantee that appropriate standards of educational quality and

fiscal accountability are maintained. In addition, reimbursement of
claims shall be distributed on a quarterly basis. The State
Department
of Education shall withhold 10 percent of the final payment of a
grant
as described in this provision until all claims for that
community-based
organization have been submitted for final payment. 

3. (a) Notwithstanding any other provision of law, all nonlocal
educational agencies (Non-LEA) receiving greater than $300,000
pursuant to this item shall submit an annual organizational audit, as

specified, to the State Department of Education, Office of External
Audits.

  All audits shall be performed by one of the following: (1) a
certified
public accountant possessing a valid license to practice within
California; (2) a member of the State Department of Education's staff

of auditors; or (3) in-house auditors, if the entity receiving funds
pursuant to this item is a public agency, and if the public agency
has
internal staff that performs auditing functions and meets the tests
of
independence found in Standards for Audits of Governmental
Organization, Programs, Activities and Functions issued by the
Comptroller General of the United States.

  The audit shall be in accordance with State Department of Education

Audit guidelines and Office of Management and Budget Circular No.
A-133, Audits of Institutions of Higher Education and Other
Non-Profit Institutions.

  Non-LEA entities receiving funds pursuant to this item shall submit

the annual audit no later than six months from the end of the agency
fiscal year. If, for any reason, the contract is terminated during
the
contract period, the auditor shall cover the period from the
beginning
of the contract through the date of termination.

  Non-LEA entities receiving funds pursuant to this item shall be
held
liable for all State Department of Education costs incurred in
obtaining
an independent audit if the contractor fails to produce or submit an
acceptable audit.

(b) Notwithstanding any other provision of law, the State Department
of Education shall annually submit to the Governor, Joint Legislative

Budget Committee, and Joint Legislative Audit Committee limited
scope audit reports of all sub-recipients it is responsible for
monitoring
that receive between $25,000 and $300,000 of federal awards, and that

do not have an organizational wide audit performed. These limited
scope audits shall be conducted in accordance with the State
Department of Education Audit guidelines and Office of Management
and Budget, Circular No. A-133. The State Department of Education
may charge audit costs to applicable federal awards, as authorized by

OMB, Circular No. A-133 Section 230(b)(2).

  The limited scope audits shall include agreed upon procedures
engagements conducted in accordance with either AICPA generally
accepted auditing standards or attestation standards, and address one

or more of the following types of compliance requirements: allowed
or unallowed activities; allowable costs and cost principles;
eligibility;
matching; level of effort; earmarking; and reporting.

  The State Department of Education shall contract for the limited
scope audits with a certified public accountant possessing a valid
license to practice within the state or with an independent auditor.



6110-158-0001--For local assistance, Department of Education
(Proposition 98), for transfer to Section A of the State School Fund
in
lieu of the amount that otherwise would be appropriated pursuant to
Section 41841.5 of the Education Code, Program
10.50.010.002--Adults in Correctional Facilities  . . . 15,557,000

Provisions:

1. Notwithstanding any other provision of law, the amount
appropriated in this item and any amount allocated for this program
in
this act shall not exceed, in the aggregate, the maximum amount
allocated for the purposes of Section 41841.5 of the Education Code.


2. Notwithstanding Section 41841.5 of the Education Code or any
other provision of law, the amount appropriated by this item shall be

allocated based upon prior-year rather than current-year
expenditures.

3. Notwithstanding any other provision of law, funding distributed to

each local education agency (LEA) for reimbursement of services
provided in the 1998-99 fiscal year for the Adults in Correctional
Facilities program shall be limited to the amount received by that
agency for services provided in the 1997-98 fiscal year, as increased

by $389,000 for growth in services and $347,000 for cost-of-living
adjustments, not to exceed a total of $16,293,000 for all programs.
Funding shall be reduced or eliminated, as appropriate, for any LEA
that reduces or eliminates services provided under this program in
the
1998-99 fiscal year, as compared to the level of service provided in
the
1997-98 fiscal year. Any funds remaining as a result of those
decreased levels of service shall be allocated to provide support for

new programs in accordance with Section 41841.8 of the Education
Code.

4. Notwithstanding any other provision of law, funding distributed to

each LEA for reimbursement of services provided in the 1997-98
fiscal year for the Adults in Correctional Facilities program shall
be
limited to the amount received by that agency for services provided
in
the 1996-97 fiscal year, as increased by $370,000 for growth in
services and $402,000 for cost-of-living adjustments, not to exceed a

total of $15,557,000 for all programs. Funding shall be reduced or
eliminated, as appropriate, for any LEA that reduces or eliminates
services provided under this program in the 1997-98 fiscal year, as
compared to the level of service provided in the 1996-97 fiscal year.

Any funds remaining as a result of those decreased levels of service
shall be allocated to provide support for new programs in accordance
with Section 41841.8 of the Education Code.

5. Notwithstanding any other provision of law, funds appropriated by
this item for growth in average daily attendance first shall be
allocated
to programs that are funded for 20 units or less of average daily
attendance, up to a maximum of 20 additional units of average daily
attendance per program. 

6110-159-0001--For local assistance (Proposition 98), Huntington
Beach High School swimming pool  . . . 100,000

Provisions:

1. The funds appropriated by this item shall be allocated by the
State
Department of Education to the Huntington Beach High School on a
one-time basis. 

6110-161-0001--For local assistance, Department of Education
(Proposition 98), Program 10.60--Special Education Programs for
Exceptional Children  . . .  2,055,384,000 
 2,062,858,000 

Schedule:

(a) 10.60.050.003-Special education instruction  . . . 
2,012,869,000 
 2,020,343,000 

(b) 10.60.050.080-Early Education Program for Individuals with
Exceptional Needs  . . . 56,910,000

(c) Reimbursements for Early Education Program, Part H  . . .
-14,395,000

Provisions:

1. Funds appropriated by this item are for transfer by the Controller
to
Section A of the State School Fund, in lieu of the amount that
otherwise would be appropriated for transfer from the General Fund
in the State Treasury to Section A of the State School Fund for the
1998-99 fiscal year pursuant to Sections 14002 and 41301 of the
Education Code, for apportionment pursuant to Part 30 (commencing
with Section 56000) of the Education Code, superseding all prior law.


2. Of the amount appropriated in Schedule (a) of this item,
$39,519,000, plus the cost-of-living adjustment (COLA) transferred
pursuant to Schedule (7) of Item 6110-187-0001, shall be available
for
program growth pursuant to Section 56836.15 of the Education Code.
The funds allocated pursuant to this provision shall be the only
funds
available in this item for program growth for ages 3 to 21 years,
inclusive.

3. Of the funds appropriated in Schedule (a) of this item,
$8,974,000,
plus the COLA transferred pursuant to Schedule (7) of Item
6110-187-0001, shall be available for the purchase, repair, and
inventory maintenance of specialized books, materials, and equipment
for pupils with low-incidence disabilities, as defined in Section
56026.5 of the Education Code.

4. Of the funds appropriated in Schedule (a) of this item,
$6,729,000,
plus the COLA transferred pursuant to Schedule (7) of Item
6110-187-0001, shall be available for the purposes of vocational
training and job placement for special education pupils through
Project
Workability I pursuant to Article 3 (commencing with Section 56470)
of Chapter 4.5 of Part 30 of the Education Code. As a condition of
receiving these funds, each local educational agency shall certify
that
the amount of nonfederal resources, exclusive of funds received
pursuant to this provision, devoted to the provision of vocational
education for special education pupils shall be maintained at or
above
the level provided in the 1984-85 fiscal year. The Superintendent of
Public Instruction may waive this requirement for local educational
agencies that demonstrate that the requirement would impose a severe
hardship.

5. Of the funds appropriated in Schedule (a) of this item,
$3,113,000,
plus the COLA transferred pursuant to Schedule (7) of Item
6110-187-0001, shall be available for regional occupational centers
and programs that serve pupils having disabilities, and $70,658,000,
plus the COLA transferred pursuant to Schedule (7) of Item
6110-187-0001, shall be available for regionalized program specialist

services, including $2,000,000 for small special education local plan

areas (SELPAs) pursuant to Section 56836.24 of the Education Code.

6. Of the funds appropriated in Schedule (a),  $4,100,000 is
provided for an adjustment for "excess pupils" with low-incidence
disabilities pursuant to Section 56836.155 of the Education Code.
  $15,826,000 is provided for an adjustment for low
incidence
disabilities, based on the results  of the study required by Section
67
of Chapter 854 of the Statutes of 1997. 

7. Of the funds appropriated in Schedule (a), $1,000,000 is provided
for extraordinary costs associated with single placements in
nonpublic,
nonsectarian schools, pursuant to Section 56836.21 of the Education
Code.

8. Of the funds appropriated in Schedule (a), a total of 
$62,541,035    $50,815,000   is available for
equalization fund-  ing. Pursuant to Section 67 of Chapter
854 of
the Statutes of 1997, up to $11,726,444 may be used for an adjustment

for low incidence disabilities, pending the results of the study
required
by that section. The amount remaining after any such adjustment, or
a minimum of $50,814,591, is provided for equalization funding
pursuant to Section    ing pursuant to Section 
56836.14
of the Education Code.

9. Of the funds appropriated in Schedule (a), a total of $97,953,000,

plus the COLA transferred pursuant to Schedule (7) of Item
6110-187-0001, is available to fully fund the costs of children
placed
in licensed children's institutions who attend nonpublic schools.

10. Of the amount appropriated in Schedule (b) of this item,
$957,600,
plus the COLA transferred pursuant to Schedule (7) of Item
6110-187-0001, shall be available for infant program growth units
(ages birth-two years). Funds for infant units shall be allocated
pursuant to Provision 11 of this item, with the following average
number of pupils per unit:

(a) For special classes and centers--16.

(b) For resource specialist programs--24.

(c) For designated instructional services--16.

11. Notwithstanding any other provision of law, early education
programs for infants and toddlers shall be offered for 200 days.
Notwithstanding Section 56726 of, Section 56731 of, or paragraph (2)
of subdivision (e) of Section 56737 of the Education Code, the State
Department of Education shall allocate funds for the 1998-99 fiscal
year to those programs receiving allocations for instructional units
pursuant to Section 56432 of the Education Code for the Early
Education Program for Individuals with Exceptional Needs operated
pursuant to Chapter 4.4 (commencing with Section 56425) of Part 30
of the Education Code, based on computing 200-day entitlements. For
educational services for children with exceptional needs, birth
through
two years of age, no funds shall be allocated pursuant to Section
56726
                                      of the Education Code. The
200-day entitlements shall not exceed 111
percent of the current entitlement for each educational agency.

12. Notwithstanding Chapter 7 (commencing with Section 56700) of
Part 30 of the Education Code, state funds appropriated in Schedule
(b) of this item in excess of the amount necessary to fund the
deficited
entitlements pursuant to Section 56432 of the Education Code and
Provision 11 of this item shall be available for allocation by the
State
Department of Education to local educational agencies for the
operation of programs serving solely low-incidence infants and
toddlers pursuant to Title 14 (commencing with Section 95000) of the
Government Code. These funds shall be allocated to each local
educational agency at a rate of $6,849 per solely low-incidence child

through age two, for each child in excess of the number of solely
low-incidence children through age two served by the local
educational
agency during the 1992-93 fiscal year and reported on the April 1993,

pupil count. These funds shall only be allocated if the amount of
reimbursement received from the State Department of Developmental
Services is insufficient to fully fund the costs of operating the
Early
Intervention Program, as authorized by Title 14 (commencing with
Section 95000) of the Government Code.

13. The State Department of Education, through coordination with the
SELPAs, shall ensure local interagency coordination and collaboration

in the provision of early intervention services, including local
training
activities, child find activities, public awareness, and the family
resource center activities.

6110-161-0890--For local assistance, Department of Education,
payable from the Federal Trust Fund, Program 10.60--Special
Education Programs for Exceptional Children  . . . 398,801,000

Schedule:

(a) 10.60.030.910-IDEA, Title VIC, Deaf-Blind Center  . . . 878,000

(b) 10.60.050.012-Local Agency Entitlements, IDEA Special
Education  . . . 342,690,000

(c) 10.60.050.013-State Agency Entitlements, IDEA Special Education
. . . 1,635,000

(d) 10.60.050.021-IDEA, Capacity Building, Special Education  . . .
17,416,000

(e) 10.60.050.030-PL 99-457, Preschool Grant Program  . . .
35,824,000

(f) 10.60.050.40-IDEA, Title VID, Handicapped Personnel Preparation
Grant  . . . 358,000

Provisions:

1. If the funds for Part B of the federal Individuals with
Disabilities
Education Act that are actually received by the state exceed
$375,373,519, at least 95 percent of the funds received in excess of
that amount shall be allocated for local entitlements and to state
agencies with approved local plans. Five percent of the amount
received in excess of $375,373,519 may be used for state
administrative expenses. If the funds for Part B of the federal
Individuals with Disabilities Education Act that are actually
received
by the state are less than $375,373,519, the reduction shall be taken
in
capacity building.

2. The funds appropriated in Schedule (c) shall be distributed to
state-operated programs serving disabled children from 3 to 21 years
of age, inclusive. In accordance with federal law, the funds
appropriated in Schedules (b) and (c) shall be distributed to local
and
state agencies on the basis of an equal amount per eligible,
identified
pupil.

3. Of the funds appropriated in Schedule (d) of this item, up to
$1,000,000 may be used to fund licensed children's institution growth

units pursuant to Section 56776 of the Education Code. These funds
are to be used for instructional units only.

4. Pursuant to Section 56427 of the Education Code, of the funds
appropriated in Schedule (d) of this item, up to $2,324,000 may be
used to provide funding for infant programs, and may be used for
those programs that do not qualify for funding pursuant to Section
56432 of the Education Code. Of these funds, $100,000 shall be
available, subject to approval of a work plan by the Department of
Finance, to conduct followup activities related to the funding
studies
and funding plan submitted pursuant to Provisions 12 and 13 of Item
6110-161-001 of Section 2.00 of the Budget Act of 1995.

5. Of the funds appropriated in Schedule (d) of this item, $8,475,000

shall be allocated to local education agencies for the purposes of
Project Workability I.

6. Of the funds appropriated in Schedule (d) of this item, $1,700,000

shall be used to provide specialized services to pupils with
low-incidence disabilities, as defined in Section 56026.5 of the
Education Code.

7. Of the funds appropriated in Schedule (d) of this item, up to
$3,617,000 shall be used for a personnel development program. This
program shall include state-sponsored staff development, local
in-service components, bilingual, student study team, and core
curriculum components. Of this amount, a minimum of $2,500,000
shall be allocated directly to special education local plan areas.
The
local in-service programs shall include a parent training component
and may include a staff training component. Use of these funds shall
be described in the local plans. These funds may be used to provide
training in alternative dispute resolution and the local mediation of

disputes. All programs are to include evaluation components.

8. Of the funds appropriated in Schedule (d) of this item, up to
$200,000 shall be used for research and training in cross-cultural
assessments.

9. Of the funds appropriated in Schedule (d) of this item, up to
$100,000 shall be used to develop and test procedures, materials, and

training for alternative dispute resolution in special education.

10. Of the funds appropriated by Schedule (e) for the Preschool Grant

Program, $1,228,000 shall be used for in-service training and shall
include a parent training component and may, in addition, include a
staff training program. These funds may be used to provide training
in
alternative dispute resolution and the local mediation of disputes.
This
program shall include state-sponsored and local components.

11. Of the funds appropriated in this item, not more than $500,000
shall be available to augment the State Department of Education's
contract for the provision of services related to mediation and fair
hearings. These funds shall only be available following approval by
the
Director of Finance and shall be contingent upon the receipt and
approval of audit findings and recommendations provided by the State
Department of Education to the Department of Finance no later than
September 1, 1998.

6110-165-0001--For local assistance, Department of Education  . . .
7,022,000

Schedule:

(a) 10.70--Vocational Education  . . . 23,897,000

(b) Reimbursements  . . . -16,875,000

Provisions:

1. $15,846,000 of the funds appropriated in this item are for the
purpose of the federal Job Training Partnership Act.

2. Notwithstanding any other provision of law, of the funds
appropriated by this item, $7,022,000 are available for the purpose
of
matching Job Training Partnership Act funds available under Section
1602(b)(1) of Title 29 of the United States Code. The Superintendent
of Public Instruction shall allocate these funds for the provision of

education in conjunction with occupational skills training pursuant
to
Section 33117.5 of the Education Code in the following order of
priority: (1) to persons participating in welfare-to-work activities
under
the CalWORKs program as described in Article 3.2 (commencing with
Section 11320) of Chapter 2 of Part 3 of Division 9 of the Welfare
and
Institutions Code; and (2) to persons eligible for Job Training
Partnership Act program funds but not receiving assistance under the
CalWORKs program.

6110-166-0001--For local assistance, Department of Education
(Proposition 98), Program 10.70.070--Vocational Education, for the
purpose of Article 5 (commencing with Section 54690) of Chapter 9
of Part 29 of the Education Code, Partnership Academies Program  .
. . 13,964,000

Provisions:

1. Of the funds appropriated by this item, $300,000 shall be for the
purposes of funding 20 Partnership Academy planning grants as
described in Article 5 (commencing with Section 54690) of Chapter
9 of Part 29 of the Education Code. These new planning grants shall
be targeted to Partnership Academies in high schools in eligible
school
districts (as specified in Sections 54692 and 54693 of the Education
Code) that serve the highest proportions of economically
disadvantaged pupils.

2. Of the funds appropriated by this item $1,050,000 shall be for the

purposes of funding 25 first operational year Partnership Academies
at the level prescribed in Section 54691 of the Education Code. If
the
State Department of Education is unable to find 25 qualified first
year
operational academies, then the department may fund additional
planning grants as described in Article 5 (commencing with Section
54960) of Chapter 9 of Part 29 of the Education Code, for a total of
not more than 200 state-funded Partnership Academies. These new
first operational year grants shall be targeted to Partnership
Academies
in high schools in eligible school districts (as specified in
Sections
54692 and 54693 of the Education Code) that serve the highest
proportions of economically disadvantaged pupils.

3. If there are any funds in this item that are not allocated for
planning
or operational grants, the State Department of Education may allocate

those remaining funds as one-time grants to state-funded Partnership
Academies to be used for one-time purposes.

4. Of the amount appropriated, $239,369 are Supplemental Grant
Funds that have been designated by school districts for Partnership
Academy Programs and shall be distributed through a separate
apportionment process.

6110-166-0890--For local assistance, Department of Education,
Program 10.70--Vocational Education, payable from the Federal Trust
Fund  . . . 119,613,000

Provisions:

1. The funds appropriated by this item include Federal Vocational
Education Act funds for the 1998-99 fiscal year to be transferred to
the
community colleges by means of interagency agreements for the
purpose of funding vocational education programs in community
colleges.

2. The State Board of Education and the Board of Governors of the
California Community Colleges shall target funds appropriated by this

item to provide services to persons participating in welfare-to-work
activities under the CalWORKs program.

3. The Superintendent of Public Instruction shall report, not later
than
February 1 of each year, to the Joint Legislative Budget Committee
and the Director of Finance, describing the amount of carryover funds

from this item, reasons for the carryover, and plans to reduce the
amount of carryover.

6110-176-0890--For local assistance, Department of Education,
Program 10.40.030--Emergency Immigrant Education, payable from
the Federal Trust Fund  . . . 39,174,000 

6110-177-0001--For local assistance, Department of Education
(Proposition 98), Program 20.10.035--Local Arts Education
Partnership Grant Program  . . . 3,000,000

Provisions:

1. The funds appropriated by this item shall be used for arts
education
programs conducted by local education agencies pursuant to guidelines

developed by the State Department of Education and approved by the
State Board of Education. 

6110-180-0890--For local assistance, Department of Education,
Program 20.10.025-- Educational Technology, payable from the
Federal Trust Fund  . . . 45,204,000

Provisions:

1. The funds appropriated by this item are for allocation to school
districts that are awarded competitive grants pursuant to the federal

Technology Literacy Challenge Grant Program. The State Board of
Education shall review and approve any changes to the criteria and
procedure used in the application and award of grant funds during the

1997-98 fiscal year prior to the release by the Superintendent of
Public
Instruction of the application form to school districts. 

2. The State Department of Education shall collaborate with the
California Research Bureau regarding recent advances in the
understanding of early brain development of children enrolled in
kindergarten, and grades 1 to 6, inclusive, and shall incorporate the

resulting findings for the use of technology into the guidelines for
integration of technology into the curriculum. 

6110-181-0001--For local assistance, Department of Education,
(Proposition 98), for transfer to the State School Deferred
Maintenance Fund  . . .  135,000,000 
 115,000,000 

Provisions:

1. The funds appropriated in this item shall be transferred to the
State
Deferred Maintenance Fund and shall be available for funding
applications received by the Office of Public School Construction for

the purpose of payments to districts for deferred maintenance
projects
pursuant to Education Code Sections 39619 through 39619.55. 

2. The funds appropriated by this item shall be available for
remediation of problems related to lead in drinking water at public
schools. Expenditures for this purpose shall be considered a
priority.


6110-181-0140--For local assistance, Department of Education,
Program 20.10.055-Environmental Education, payable from the
California Environmental License Plate Fund  . . . 800,000

6110-183-0890--For local assistance, Department of Education,
Program 20.10.045--Health and Physical Education, Instructional
Support--Safe and Drug Free Schools and Communities Act of 1994
(P.L. 103-382)  . . . 45,494,000

Provisions:

1. Local education agencies shall give priority in the expenditure of
the
funds appropriated by this item to create comprehensive drug and
violence prevention programs that promote school safety, reduce the
use of drugs, and create learning environments that are free of
alcohol
and guns and that support academic achievement for all pupils. In
addition to preventing drug and alcohol use, prevention programs will

respond to the crisis of violence in our schools by addressing the
need
to prevent serious crime, violence, and discipline problems. The
Superintendent of Public Instruction shall (a) notify local education

agencies of this policy, and (b) incorporate the policy into the
department's compliance review procedures.

6110-184-0001--For local assistance, Department of Education
(Proposition 98), Program 20.10.025--Educational Technology  . . .
 76,000,000 
 50,000,000 

Provisions:

1. The funds appropriated by this item are to fund grants to school
districts pursuant to the Digital High School Program, established
pursuant to Chapter 326 of the Statutes of 1997.

6110-185-0001--For local assistance, Department of Education
(Proposition 98), Instructional Materials, Grades 9-12  . . .
39,001,000 

Provisions:

1. Of the amount appropriated, $8,101,206 is Supplemental Grant
Funds that have been designated by school districts for Instructional

Materials programs and will be distributed through a separate
apportionment process. 

6110-186-0001--For local assistance, Department of Education
(Proposition 98)--Instructional Materials, Kindergarten and Grades
1-8
. . . 133,099,000 

Provisions:

1. Of the amount appropriated by this item, $10,703,393 are
Supplemental Grant funds that have been designated by school
districts for instructional materials programs and shall be
distributed
through a separate apportionment process. 

6110-187-0001--For local assistance, Department of Education
(Proposition 98), for transfer to Section A of the State School Fund,

for cost-of-living increases to be transferred to, in lieu of the
amount
that otherwise would be provided pursuant to statute, and in
augmentation of, the respective appropriations by the Controller upon

enactment in accordance with the following  . . . 78,835,000

Schedule:

(1) 10.10.011.006--School Apportionments, for Community Day
Schools, for transfer to Item 6110-190-0001  . . . 436,000

(2) 10.10.004--School Apportionments, for Regional Occupational
Centers/Programs, for transfer to Schedule (a) of Item 6110-105-0001
. . . 6,600,000

(3) 10.10.011.003--School apportionments, for remedial summer
school programs, for transfer to Schedule (a) of Item 6110-104-0001
. . . 1,424,000

(4) 10.10.011.004--School apportionments, for core academic summer
school programs, for transfer to Schedule (b) of Item 6110-104-0001
. . . 2,592,000

(5) 10.10.011.005--School apportionments, Continuation Schools
(Sec. 42243.7, Ed. C.)  . . . 627,000

(6) 10.50.010--Adult Education, for transfer to Schedule (a) of Item
6110-156-0001  . . . 10,620,000

(7)  10.60.050--Special    10.60.050.003
--Special 
Education Program for Exceptional Children, for transfer to Schedule
(a) of Item 6110-161-0001  . . . 55,295,000

(8) 10.60.050.080--Early Education Program for Individuals with
Exceptional Needs, for transfer to Schedule (b) of Item 6110-161-0001

. . . 1,241,000

Provisions:

1. Notwithstanding any other provision of law, the amount provided
in this item for transfer to the Early Education Program for
Individuals
with Exceptional Needs shall be allocated on a dollar amount basis
rather than as a percentage increase. The dollar amount shall be
equal
to 2.18 percent of the statewide average unit rate.

2. Notwithstanding any other provision of law, the amount provided
in this item for transfer to the Special Education Program for
Exceptional Children shall be allocated on a dollar amount basis
rather
than as a percentage increase. The dollar amount shall be equal to
2.18
percent of the statewide target amount per unit of average daily
attendance for special education.

3. (a) Notwithstanding any other provision of law, the funds
appropriated by Schedule (5) of this item for school apportionments
to continuation schools shall be allocated on a dollar amount basis
rather than as a percentage increase, and shall be allocated to any
school district that operated a continuation high school in the
1997-98
fiscal year, without regard to whether that district's program
commenced on, after, or prior to July 1, 1978. The amount allocated
to each school district shall be equal to the total amount
appropriated
by Schedule (5) of this item, divided by the total number of units of

continuation high school average daily attendance (ADA) for the state

at the second principal apportionment for the 1997-98 fiscal year,
multiplied by the units of that ADA reported by the district for the
second principal apportionment for the 1997-98 fiscal year.

(b) The total amount allocated pursuant to subdivision (a) of this
provision shall not exceed the total amount of the funds appropriated

in Schedule (5) of this item.

6110-190-0001--For local assistance, Department of Education
(Proposition 98), Program 10-School Apportionments, Community
Day Schools  . . . 20,000,000

Provisions:

1. The funds appropriated by this item are for transfer to Section A
of
the State School Fund to reimburse costs incurred pursuant to Chapter

974 of the Statutes of 1995.

2. Funds appropriated by this item shall not be available for the
purposes of Section 41972 of the Education Code.

6110-191-0001--For local assistance, Department of Education
(Proposition 98), Program 20.60-Staff Development  . . . 49,100,000

Schedule:

(a) 20.60.050.002-Beginning Teacher Support and Assessment  . . .
49,100,000

Provisions:

1. The funds appropriated by Schedule (a) are for direct disbursement

by the State Department of Education for expansion of the Beginning
Teacher Support and Assessment Program, as set forth in Article 4.5
(commencing with Section 44279.2) of Chapter 2 of Part 25 of the
Education Code. These funds shall be expended only after
development of a program and expenditure plan by the State
Department of Education, and approval of the plan by the Department
of Finance. 

6110-192-001--For local assistance, Department  of Education
(Proposition 98), Program 20.60.140.000-Staff Development-Teacher
Improvement  . . . 5,000,000

Provisions:

1. The amounts appropriated by this item are for allocation to
school
districts for the purpose of awarding a $10,000 one-time salary bonus

to each teacher who successfully completes National Board
certification, or who has completed this certification on or before
June
30, 1998. 

6110-194-0001--For local assistance, Department of Education--Staff
Development  . . .  2,249,000 
 3,201,000 

Schedule:

(a) 20.60.010.001-Administrator Training and Evaluation Program  .
. . 1,593,000

(b) 20.60.080-Exploratorium  . . .  551,000 
 1,503,000 

(c) 20.60.125-Geography Education Alliances  . . . 105,000

Provisions:

1. The funds appropriated by this item are for transfer by the
Controller to Section A of the State School Fund, for direct
disbursement by the State Department of Education in lieu of the
amount that otherwise would be appropriated for staff development
pursuant to subdivision (a) of Section 74 of Chapter 894 of the
Statutes of 1977.

2. Notwithstanding any other provision of law, the amount
appropriated in Schedule (a) of this item shall be the maximum
amount allocated for the 1998-99 fiscal year for the purposes of the
administrator training and evaluation program set forth in Article 3
(commencing with Section 44681) of Chapter 3.1 of Part 25 of the
Education Code.

6110-196-0001--For local assistance, Department of Education
(Proposition 98), for transfer to Section A of the State School Fund,

for allocation by the Superintendent of Public Instruction to school
districts, county offices of education, and other agencies for the
purposes of Proposition 98 educational programs funded in this item,
in lieu of the amount that otherwise would be appropriated pursuant
to
statute  . . .  793,638,000 
 796,638,000 

Schedule:

(a) 30.10.010-Special Program, Child Development Preschool
Education  . . . 161,982,000 

(b) 30.10.020-Child Care Services  . . . 1,168,710,000  


(b) 30.10.020-Child Care Ser

vices  . . . 1,063,710,000 

(1) 30.10.020.001-Special Program, Child Development, General
Child Development Programs  . . . 434,989,000

(2) 30.10.020.002-Special Program, Child Development, Community
College Match-Required Center  . . . 2,649,000

(3) 30.10.020.003-Special Program, Child Development, High School
Parenting and Infant Development  . . . 20,962,000

(4) 30.10.020.004-Special Program, Child Development, Migrant Day
Care  . . .  16,948,000 
 21,948,000 

(5) 30.10.020.007-Special Program, Child Development, Alternative
Payment Program  . . . 167,156,000

(5.1) 30.10.020.011-Special Program, Child Development, Alternative
Payment Program-Stage 2  . . .  324,759,000 
 216,759,000 

(5.2) 30.10.020.012-Special Program, Child Development, Alternative
Payment Program-Stage 3  . . . 110,000,000

(6) 30.10.020.008-Special Program, Child Development, Resource and
Referral  . . .  14,607,000 
 17,607,000 

(7) 30.10.020.009-Special Program, Child Development, Campus
Child Care Tax Bailout  . . . 5,107,000

(8) 30.10.020.015-Special Program, Child Development, Extended
Day Care  . . . 26,544,000

(9) 30.10.020.096-Special Program, Child Development, Allowance
for Handicapped  . . . 1,251,000

(10) 30.10.020.106-Special Program, Child Development, California
Child Care Initiative  . . . 250,000

(11) 30.10.020.901-Special Program, Child Development, Quality
Improvement  . . .  43,488,000 
 38,488,000 

(c) 30.10.020.907-Special Program, Child Development, Minimum
Wage Impact  . . . 6,000,000

(d) 30.10.020.908-Special Program, Child Development, Cost of
Living Adjustments  . . . 20,198,000

(e) Amount Payable from the Federal Trust Fund (Item 6110-1960890)
. . .  -563,252,000 
-455,252,000 

Provisions:

1. (a) Of the funds appropriated in Schedule (a) of this item,
$15,700,000 is for the purpose of providing half-year expansion of
the
state  preschool program for the Pre-Kindergarten for
Low-Income
Families Initiative. It is the intention of the Legislature that the
Pre-Kindergarten for Low-Income Families Initiative will provide
sufficient funds to serve all four-year olds under the federal
poverty
level in a preschool program by the year 2000. Pursuant to Sections
8236(b)(2) and 8263(b)(2) of the Education Code, first priority for
enrollment, after abused and neglected children, shall be given to
four-year olds with families with the lowest gross monthly income
being admitted first. In allocating funds made available by this
provision, the State Department of Education shall make every effort
to allocate funding to communities in amounts proportional to the
number of four-year olds living under the federal poverty level who
are
currently estimated to be unserved by subsidized child care programs.

In all cases successful applicants must demonstrate the ability to
serve
four-year olds under the federal poverty level with these funds with
priority given to school districts that agree to use Federal Title I
funds
to purchase additional enrollment slots or to augment existing
preschool educational support services for Title I eligible children.
The
State Department of Education shall work with the Department of
Finance in estimating the number of four-year olds within
communities living under the federal poverty level.   
preschool program. It is the intent of the Legislature to provide
sufficient funds to serve all four-year-olds under the federal
poverty
level in a preschool program by the year 2000. Pursuant to paragraph
(2) of subdivision (b) of Section 8236 and paragraph (2) of
subdivision
(b) of Section 8263 of the Education Code, first priority for
enrollment, after abused and neglected children, shall be given to
four-year-olds from families with the lowest gross monthly income. In

allocating the unds made available by this provision, after complying

                      with Section 8289 of the Education Code, the
State Department of
Education (SDE) shall seek assistance from local child care planning
councils to identify those areas and populations within counties that

are most underserved by current state and federal programs for child
care, preschool, and HeadStart. The SDE shall develop guidelines for
use by local child care planning councils in identifying unserved and

underserved areas and populations. These guidelines shall include,
but
need not be limited to, the utilization of data such as teenage
pregnancy rates and unemployment rates. Further, the SDE shall
prioritize the expansion funds to be directed to the unserved and
underserved areas and populations within counties. In all cases,
successful applicants shall demonstrate the ability to serve
four-year-olds under the federal poverty level. The SDE shall work
with the Department of Finance in estimating the number of
four-year-olds within communities living under the federal poverty
level and shall provide this information to local child care planning

councils. 

(b) Of the funds appropriated in Schedule (b)(1) of this item,
$10,000,000 is for the purpose of providing half-year funding for the

expansion of child care services for infants and toddlers.
Notwithstanding Section 8263 of the Education Code, the State
Department of Education shall allocate these funds to expand child
care and development services to infants and children under three
years of age. In allocating funds made available by this provision,
the
 department shall give first priority to those communities,
as
identified by ZIP Code, that do not currently have subsidized child
care services available to serve infants and toddlers.  
 State
Department of Education (SDE) shall, after complying with Section
8289 of the Education Code, seek assistance from local child care
planning councils to identify those areas and populations within
counties most underserved by current state and federal programs for
infant and toddler childcare and development. The SDE shall develop
guidelines for use by local planning councils in identifying unserved

and underserved areas and populations. These guidelines shall
include,
but need not be limited to, the utilization of data such as teenage
pregnancy rates and unemployment rates. Further, the SDE shall
prioritize the expansion funds to be directed to the unserved and
underserved areas and populations within counties. 

(c) Of the funds appropriated in Schedule (b)(1) of this item,
$23,000,000 is for the purpose of providing full-year funding for the

expansion of child care services for infants and toddlers initiated
with
a $23,000,000 augmentation in the Budget Act of 1997. Funds
allocated for annualized expansion shall not be used for a
cost-of-living adjustment for existing contracted services. It is the

intent of the Legislature that, notwithstanding Section 8263 of the
Education Code, the State Department of Education allocate these
funds to expand child care and development services to infants and
children under three years of age.

(d) Of the amount appropriated in this item, $15,000,000 is for the
purpose of providing full-year funding for full-day care services for

children enrolled in the State Preschool Program and/or to expand the

existing half-day preschool program as initiated with a $15,000,000
augmentation as specified in Provision 1(d) of Item 6110-196-0001 of
Section 2.00 of the Budget Act of 1997 (Ch. 282, Stats. 1997). Of
this
amount, $9,300,000 is appropriated in Schedule (a) to continue the
expansion of the half-day Preschool program, and $5,700,000 is
appropriated in Schedule (b)(1) to continue the expansion of full-day

services for children enrolled in the State Preschool Program.

2. Notwithstanding Section 8278 of the Education Code, funds
available for expenditure pursuant to Section 8278 of the Education
Code shall be expended in the 1998-99 fiscal year pursuant to the
following schedule:

(a) The amount necessary for accounts payable pursuant to paragraph
(1) of subdivision (b) of Section 8278 of the Education Code.

(b) Of the funds available pursuant to Section 8278 of the Education
Code, as scheduled under this item for quality improvement
activities,
the State Department of Education shall allocate $425,000 to
preschool
education projects including, but not limited to, those operated by
the
public television stations in Redding, San Francisco, San Jose, Los
Angeles, Fresno, and San Diego. Of this amount, the department shall
allocate up to $320,000 to public television stations in Redding, San

Francisco, San Jose, and Los Angeles, based upon the satisfaction by
the projects operated by the public television stations in each of
those
cities of all of the following criteria: (1) the 30-percent minimum
match; (2) a plan that identifies the providers to be trained; (3)
number
of trainers to be trained; (4) the quality of the training offered;
(5)
linkages to the child care community; and (6) cost effectiveness.

   The balance of the $425,000 identified in this subdivision shall
be
made available to support projects in Fresno and San Diego, based
upon the determination by the State Department of Education of the
satisfaction by the projects operated by the public television
station in
each of those cities of the criteria set forth above in (1) to (6),
inclusive.

   As a condition of receiving funds as described in this subdivision
in
the 1998-99 fiscal year, each grantee that received funds in the
1997-98 fiscal year shall complete and submit to the State Department

of Education, no later than March 1, 1999, an evaluation of the
effectiveness of the project operated by the grantee in improving the

quality of child care provided in the affected community.

 (bb) $30,000 shall be made available for a preschool public
television project in Eureka. 

(c) The State Department of Education shall establish a plan for any
remaining unexpended balances that sets forth the criteria for
determining funding priorities, the funding priorities, and the
amount
of funding proposed per priority. The remaining funds shall not be
allocated sooner than 30 days after the Department of Finance
provides notification of its approval of the plan to the Legislature
in
accordance with the procedures set forth in Section 28.00 of this
act.

(d) The Controller shall establish an account entitled Section 8278
Expenditures in 1996 in 6110-196-0001, Program 30.10.060. Any
unexpended balances as of June 30, 1998, or subsequent abatements,
from those amounts listed in Schedules (a) and (b) of this item, that

are available pursuant to Section 8278 of the Education Code, shall
be
transferred to the account for the purpose of making expenditures
pursuant to that section.

3. The State Department of Education shall report to the Joint
Legislative Budget Committee, by March 31, 1999, the amount of
child development funds, by program, that have been determined after
audit to be unearned. The department shall report, by March 31, 1999,

the settlement of claims payable by program from unearned contract
funds balances.

4. Notwithstanding any other provision of law, alternative payment
child care systems shall be subject to the rates established in the
Regional Market Rate Survey of California child care and development
providers for provider payments. The State Department of Education
shall utilize a federal fund contract with the State Child Care
Resource
and Referral Network to conduct a market rate survey, the results of
which shall be provided to the State Department of Education and the
State Department of Social Services for utilization by various
programs under the jurisdiction of both departments to determine
limits of reimbursement to providers.

5. The funds appropriated by this item for campus child care tax
bailout shall be allocated by the State Department of Education based

on a schedule provided by the Chancellor of the California Community
Colleges. The Chancellor shall schedule the allocation of these funds

to community college districts that levied child care permissive
override taxes in the 1977-78 fiscal year pursuant to Sections 8329
and
8330 of the Education Code in an amount equal to the property tax
revenues, tax relief subventions, and state aid required to be made
available by the district to its child care and development program
for
the 1979-80 fiscal year pursuant to Section 30 of Chapter 1035 of the

Statutes of 1979, increased by any cost-of-living increases granted
in
subsequent fiscal years. These funds shall be used only for the
purpose
of community college child care and development programs.

6. Notwithstanding any provision of law to the contrary, higher
educational institutions may establish and maintain child development

programs on or near their respective campuses with priority for
services given to children of students of that campus. Those higher
educational institutions under contract with the State Department of
Education for child care and development services shall be subject to

the rules and regulations adopted by the Superintendent of Public
Instruction except where those rules and regulations differ with
respect
to the conditions specified for the Community Colleges in Provision
11 of Item 6870-101-0001.

7. Funds in Schedule (b)(11) shall be reserved for activities to
improve
the quality and availability of child care, pursuant to the
following:

(a) $4,592,000 shall be for purposes of continuing programs funded
under the Dependent Care Grant.  At least $3,405,000 of this
amount shall be used for afterschool startup grants. To the extent
possible, applications for these funds shall be considered in
conjunction with applications for the new afterschool program
authorized by legislation enacted during the 1997-98 Regular Session
that becomes operative on or before January 1, 1999. 

(b) $1,000,000 shall be used on a one-time basis for the development
of pre-kindergarten learning development guidelines pursuant to
legislation enacted during the 1998-99 Regular Session, that becomes
effective on or before January 1, 1999.  $5,000,000 shall be
used
for an educational outreach program for the purpose of training
licensed and license-exempt family child care home providers to use
the learning development guidelines to provide enrichment
experiences which will prepare young children for success in school.

The State Department of Education and the Department of Social
Services shall collaborate on developing this training program to
ensure that all training for center based care, as well as for
licensed
and license-exempt family child care providers, are coordinated.

The State Department of Education shall amend its current
expenditure plan for quality improvement activities to include the
activities noted in this subdivision.

(bb) At least $125,000 shall be allocated for Trustline Registration
and
at least $2,000,000 shall be allocated for Local Child Care Planning
Councils pursuant to Chapter 270 of the Statutes of 1997.

(c) $14,004,000 shall be used to continue the activities specified in
the
expenditure plan approved for the 1997-98 fiscal year. Should the
State Department of Education find it necessary to revise this plan
other than for the reason specified in (a) or (b) above, the
department
shall submit for approval, an amended plan to the Department of
Finance prior to the expenditure of funds for activities set forth in
the
amended plan.

(d) The State Department of Education shall establish expenditure
priorities for the 1999-2000 fiscal year that set forth the proposed
state
and local activities to improve child care, including the reasons
therefore, to be undertaken in the 1999-2000 fiscal year. This plan
shall be submitted in a format developed in consultation with the
Department of Finance and shall be submitted to the Office of Child
Development and Education and then to the Department of Finance at
least 30 days prior to the commencement of public hearings on the
proposed plan and no later than March 31,  1998 
 1999
(e) Pursuant to federal grant requirements, $6,267,000 shall be used
for increasing the supply of quality child care for infants and
toddlers.
The State Department of Education shall coordinate with the State
Department of Social Services and the Office of Child Development
and Education in the development of the plan for expenditure of these

funds. Notwithstanding any provision of law, expenditure plans and
contract provisions for awarding these funds shall    be
given
   give   high, but not exclusive, priority to the

development of new family day care home providers, especially those
who offer care during nontraditional hours such as weekends,
evenings, and nights and who offer care for special needs children.

(f) Up to $10,100,000 of the amount in Schedule (b)(11) shall be
available on a one-time basis for activities to increase the capacity
of
child care, including, but not limited to, planning and collaborating

with other local agencies, recruiting and training family home and
center-based child care providers, and providing facility renovation
and repair funds to increase licensed capacity. The State Department
of Education shall coordinate with the State Department of Social
Services and the Office of Child Development and Education in
development of an expenditure plan that gives priority in funding to
the development of new capacity in underserved areas as identified in

the planning and implementation process, including, but not limited
to,
family day care home providers who offer care during nontraditional
hours such as weekends, evenings, and nights and who offer care for
special needs children.

(g) If the $1,122,000 available pursuant to Schedule (b)(17) of Item
6110-196-0001 of Section 2.00 of the Budget Act of 1997 (Ch. 282,
Stats. 1997), for the purpose of schoolage start-up grants has not
been
fully expended by June 30, 1998, the unexpended balance of these
funds is available in the 1998-99 fiscal year for the same purposes
and
subject to the same conditions as otherwise applicable to Schedule
(b)(17) of Item 6110-196-0001 of Section 2.00 of the Budget Act of
1997. Upon certification by the Superintendent of Public Instruction,

and approval by the Department of Finance, the Controller shall
augment Item 6110-196-0001, Schedule (b)(11) of Item
6110-196-0001 of Section 2.00 of this act for that purpose. It is
further
intended that applications for these funds be conducted in
conjunction
with a new after school program authorized by Legislation enacted
during the 1997-98 Regular Session that becomes operative on or
before January 1, 1999.

(h) The State Department of Education shall coordinate with the State

Department of Social Services to prepare and present  a
 
an interim report on or before March 31, 1999, and a final  
report
by December 31, 1999, to the Joint Legislative Budget Committee and
Department of Finance. The report shall define the strategies,
results
and effectiveness of recent expenditures and allocations for building

capacity for the state's child care needs, including, but not limited
to,
the amounts and kinds of capacity increased by those efforts,
barriers
found in preventing increased capacity, and recommendations for
overcoming those barriers. The report shall include recommended best
practices for future capacity building activities specific to the
types of
care in shortest supply, such as infant and toddler care, schoolage
care,
care in underserved areas, and nontraditional hours care. This report

shall also include the results of current pilot studies involving
training
CalWORKs recipients as licensed family child care providers or
licensed-exempt providers, and recommendations on the magnitude
and role of both CalWORKs recipient training and license-exempt care
in meeting future needs. If additional studies or research are needed
by
either agency to adequately respond to this requirement, the State
Department of Education may expend whatever sums are necessary
from the one-time federal funds specified in Provision 7(f) for this
purpose or from any other quality funds that may be available.

8. If the federal funds available pursuant to Provision 10 of Item
6110-196-0001 of Section 2.00 of the Budget Act of 1997 have not
been transferred to  6110-001-0001    Item
6110-001-0001 of Section 2.00 of this act   by June 30, 1998,
those funds shall be available in the 1998-99 fiscal year for (a)
interim
data reporting as approved by the Department of Finance, and, (b) for

the same purposes and subject to the same conditions and reporting
requirements otherwise applicable to Item 6110-196-0001 of the
Budget Act of 1997.

10. Of the $6,000,000 appropriated in Schedule (c) for child care and

development services minimum wage impact, $4,200,000 is to be
added as a general cost-of-living adjustment (COLA) in addition to
the
statutory (COLA) for all General Fund direct services. $1,800,000
shall be allocated to providers below the standard reimbursement rate

only after application of the COLA specified above, to the extent
contractors who request increases can document that their increased
costs are a direct result of federal or state minimum wage increases.

Any funds remaining from the $1,800,000 after the requirements of
this provision have been met also shall be distributed as a general
cost-of-living adjustment for all General Fund direct services.

11. $60,000,000 of the funds in Schedule (b)(5.2) are intended to be
for families who have been receiving child care services pursuant to
Section 8351 or 8353 of the Education Code. Alternative payment
providers shall continue to replace families receiving child care
services through the alternative payment program as set forth in
Section 8220.1 of the Education Code until all the federal funds
described in this section have been committed to families who have
been receiving child care services pursuant to Section 8351 or 8353
of
the Education Code. $50,000,000 of the funds in Schedule (b)(5.2) are

reserved exclusively for child care for former CalWORKs recipients
who have left cash aid, but still meet eligibility requirements for
receipt of child care services.

12. Nonfederal funds appropriated by this item which have been
budgeted to meet the state's Temporary Assistance for Needy Families
maintenance of effort requirement established pursuant to the federal

Personal Responsibility and Work Opportunity Reconciliation Act of
1996 (P.L. 104-193) may not be expended in any way that would
cause their disqualification as a federally-allowable maintenance of
effort expenditure. 

13. In recognition of the extensive services currently provided to
CalWORKs recipients, the increased level of services provided to
these populations by resource and referral agencies as provided for
in
this item, and the economies of scale that occur as contract amounts
are substantially increased, it is the intent of the Legislature that

administrative and support services allowances for alternative
payment
contractors serving these populations be limited to no more than 25
percent of the direct cost of care payments to child care providers.

Therefore, notwithstanding any other provision of law or regulation,
the State Department of Education shall ensure that contract
provisions
conform to this intent for Stages 2 and 3 child care contracts funded

through Schedules (b)(5.1) and (b)(5.2) of this item. 

14. Notwithstanding Section 26.00 of this act or any other provision
of law, the State Department of Education may transfer amounts
between the following schedules in this item: Schedule (b)(1) General

Child Care, Schedule (b)(2) Campus with Match, Schedule (b)(4)
Migrant Day Care, Schedule (b)(8) Extended Day Care, and Schedule
(b)(9) Allowance for Handicapped. However, these transfers are
authorized only if the need for the transfer results from changes
initiated in accordance with the prototype contracting demonstration
project approved through the process authorized pursuant to Section
6 of Chapter 204, of the Statutes of 1996. The Controller shall
adjust
schedules accordingly as detailed on a standard budget revision form
when certified to be in accordance with this provision by the
Superintendent of Public Instruction or the Deputy Superintendent of
Public Instruction responsible for fiscal affairs. Those changes are
not
to be considered permanent changes to the base authorized levels of
the respective programs. 

15. Funds appropriated in Schedule (b)(14) of this item shall not be
available for expenditure until enactment of legislation during the
1997-98 Regular Session that provides incentive grants for operation
of after school enrichment programs partnering schools and
communities, that include academic and literacy support and provide
safe, constructive alternatives for youth.  

15. The State Department of Education (SDE) shall determine the
amount of Stage 2 funds that will be distributed to each county,
based
on its best estimate of the needs of each county for Stage 2 child
care.
In counties where there is more than one Alternative Payment Program
participating in Stage 2, the department shall require the county
welfare department and all participating Alternative Payment
Programs to jointly determine the amount of funds that will be
distributed to each Alternative Payment Program. 

16. Any increase in the federal Child Care Development Block Grant
that the state receives after July 1, 1998, not to exceed 
$10.5
million dollars    $5,000,000  , shall be used for
the
purpose of funding programs to enhance child care provider wages and
retention in geographic areas of the state that include underserved
populations.

17. Notwithstanding Section 26.00 of the Budget Act, the 
$20,462,000    $20,198,000   appropriated in
Schedule
(d) of this item, for Child Development cost-of-living adjustments,
is
for transfer to the scheduled programs within this item. 

18. Of the funds in Schedule (b)(4) of this item, up to $5,000,000
may
be used to establish a pilot Migrant Alternative Payment (AP) Network

Program for Central Valley counties. The Migrant AP Network
Program shall be centrally organized, with a network of at least five

satellite locations throughout the Central Valley. The pilot program
shall allow the AP childcare services to cross county boundaries to
follow migrating migrant families as they move to find work within
the
Central Valley. The pilot program shall provide childcare
certificates
and administrative/family services and shall meet the requirements
specified in Article 3 (commencing with Section 8220) of Chapter 2
of Part 6 of the Education Code that apply Alternative Payment
Programs. The State Department of Education shall submit a detailed
proposal by February 1, 1999, to establish the scope of the pilot
program, including an evaluation plan, to the Department of Finance
for concurrence and subject to review by the Joint Legislative Budget

Committee, pursuant to the reporting requirements of Section 28.00
of this act. 

6110-196-0890--For local assistance, Department of Education, for
payment to Item 6110-196-0001 payable from the Federal Trust Fund
. . .  563,252,000 
 455,252,000 

Provisions:

1. Notwithstanding any other provision of law, the funds
appropriated
by this item, to the extent permissible under federal law, are
subject to
Section 8262 of the Education Code.

2. The funds appropriated in this item constitute the Federal Child
Care and Development Block Grant and are contingent upon receipt
of the federal grant.

3. Of the funds appropriated by this item, $24,000,000 in Federal
Child Care and Development Block Grant funds appropriated by the
federal government prior to the 1997 federal fiscal year shall be
available to alternative payment programs.

4. Of the funds appropriated by this item,  $208,000,000

 $100,000,000   is from transfer of funds from the federal
Temporary Assistance for Needy Families (TANF) block grant
administered by the State Department of Social Services to the
Federal
Child Care and Development Block Grant for Stage 2 child care. 

6110-198-0001--For local assistance, Department of Education, for
allocation to the Latino Museum of Art, History and Culture, which
was designated as a regional Latino heritage resource center pursuant

to Chapter 3.66 (commencing with Section 44777.1) of Part 25 of the
Education Code  . . . 750,000

Provisions:

1. As a condition to receiving funds, the Latino Museum of Art,
History and Culture shall include all of the following in its
application
for funding that:

(a) A plan to do all of the following on a regional basis:

(1) Develop a variety of high-quality permanent and changing exhibits

on Latino history, art, and culture that encompasses North, Central,
and South America.

(2) Provide teacher training activities.

(3) Provide educational services for elementary and secondary school
pupils.

(b) A description of how it will attract private and public financial

support for the development of its Latino heritage exhibits and
educational programs.

(c) A plan for providing educational services previously unavailable
to

pupils and teachers in the region other than through the Latino
Museum of Art, History and Culture, including, but not limited to,
the
provision of publications and audio-visual materials on Latino
history,
art, and culture developed by the museum.

(d) A description of how it will improve current efforts as a
regional
Latino heritage resource center both qualitatively and
quantitatively.

(e) A plan for collecting and preserving Latino cultural heritage and

artifacts.

2. Funds allocated to the Latino Museum of Art, History and Culture
shall be used only for the development costs of exhibits and
collections, providing educational programs for pupils and teacher
training materials, and capital outlay and other costs associated
with
the exhibits, collections, and programs presented. These funds shall
supplement, and not supplant, current funding for educational
services
for public school pupils from other funding sources.

3. The Superintendent of Public Instruction shall review the
application of the Latino Museum of Art, History and Culture to
ensure that funds will be used only for the purposes authorized in
this
section. The application shall include an expenditure plan for the
proposed use of these funds. Funds appropriated in this section shall

only be expended for services provided beginning July 1, 1998,
through June 30, 2001.

6110-199-0001--For local assistance, Department of Education, for the

California Civil Liberties Public Education Program  . . . 1,000,000

Provisions:

1. The amount appropriated by this item is for a program that
provides grants for civil liberties curriculum development, pursuant
to
enactment of legislation during the 1997-98 Regular Session that
becomes operative on or before January 1, 1999. 

6110-200-0001--For local assistance, Department of Education
(Proposition 98), Program 20.60.037 Healthy Start Support Services
for Children Act  . . .  51,000,000 
 49,000,000 

Provisions:

1. For purposes of allocating up to  $4,400,000  

$10,000,000   of the funds appropriated by this item, the State
Department of Education shall give priority to those applicants that
address the needs of pregnant and parenting teenagers as specified in

Chapter 311, Statutes of 1995. 

2. Of the funds appropriated in this item, $2,000,000 shall be used
for
a Healthy Start Infant and Toddler Development Parent Outreach
Program pursuant to legislation enacted during the 1997-98 Regular
Session, effective on or before January 1, 1999.

3. Of the funds appropriated in this item, $3,000,000 shall be
available
on a one-time basis for three-year grants, beginning with the 1998-99

fiscal year, for the purpose of funding regional demonstration pilot
programs of technical assistance to teach school districts with
Healthy
Start sites how to develop strategic plans and materials specifically

designed to support corporate funding development, with priority
given to districts with sites experiencing difficulties raising funds
to
achieve sustainability.

4. Of the funds appropriated in this item, $2,600,000 shall be
available
on a one-time basis, for three-year grants, for allocation to Healthy

Start Programs, beginning with the 1998-99 fiscal year, for the
purpose of supporting technical assistance and focused group training

to teach school districts how to maximize reimbursements of federal
funds for Medi-Cal services and case management. 

6110-201-0001--For local assistance, Department of Education
(Proposition 98)  . . . 1,000,000

Schedule:

(a) 30.20 Child Nutrition  . . . 1,800,000

(b) Reimbursements  . . . -800,000

Provisions:

1. Notwithstanding any other provision of law, the amount
appropriated in this item is for the purpose of providing grants to
school districts and county superintendents of schools during the
1998-99 school year pursuant to Section 49550.3 of the Education
Code, and for nonrecurring expenses incurred by a school district or
county office of education in initiating  the  
or
expanding a   Summer Food Service Program for children
pursuant to Section 49547.5 of the Education Code following criteria
developed by the State Department of Education.

6110-201-0890--For local assistance, Department of Education,
Program 30.20--Child Nutrition, payable from the Federal Trust Fund
. . . 1,215,106,000

Schedule:

(a) 30.20.010--Child Nutrition  . . . 1,192,806,000

(b) 30.20.040--Summer Food Service Program  . . . 22,300,000

6110-202-0001--For local assistance, Department of Education  . . .
10,882,000

Schedule:

(a) 30.20.010-Child Nutrition  . . . 10,876,000

(b) 30.20.020-Pregnant/Lactating Minors  . . . 6,000

Provisions:

1. Funds appropriated by this item are for child nutrition programs
pursuant to Section 41311 of the Education Code. Claims for
reimbursement of meals pursuant to this appropriation shall be
submitted not later than September 30, 1999, to be eligible for
reimbursement.

2. Notwithstanding any other provision of law, except as provided in
this provision, funds appropriated by this item shall be available
for
allocation in accordance with Section 49536 of the Education Code,
except that the allocation shall not be made based on all meals
served,
but based on the number of meals that are served and that qualify as
free or reduced-price meals in accordance with Sections 49501, 49550,

and 49552 of the Education Code. 

6110-203-0001--For local assistance, Department of Education
(Proposition 98), Program 20.40-Joint Use Libraries  . . . 5,000,000

Provisions:

1. The funds appropriated by this item are available to fund joint
use
library projects pursuant to legislation enacted during the 1997-1998

Regular Session that becomes operative on or before January 1, 1999.



6110-204-0001--For local assistance, Department of Education
(Proposition 98), for Program 10.80.030 International Baccalaureate
Program  . . .  1,200,000 
 1,270,000 

Provisions:

1. The funds appropriated by this item are available to fund the
International Baccalaureate Program, subject to the establishment of
that program by legislation enacted during the 1997-98 Regular
Session that becomes operative on or before January 1, 1999. 

6110-212-0001--For local assistance, Department of Education
(Proposition 98), Program 20.60--High-Risk Youth Education and
Public Safety Program  . . . 20,000,000

Provisions:

1. The funds appropriated by this item are for transfer to Section A
of
the State School Fund, for allocation by the State Department of
Education to school districts and county offices of education for
costs
incurred for the High-Risk First-Time Offenders Program and the
Transitioning High-Risk Youth Program pursuant to Article 1
(commencing with Section 47760) of Chapter 2 of Part 26.95 of the
Education Code.  

6110-225-0001--For local assistance, Department of Education
(Proposition 98) Program 20.60--Instructional Support-Improving
School Effectiveness  . . . 10,000,000

Provisions:

1. The funds appropriated by this item are available to fund the
Community Policing Program, subject to the establishment of that
program by legislation enacted during the 1997-98 Regular Session
that becomes operative on or before January 1, 1999. 

6110-226-0001--For local assistance, Department of Education
(Proposition 98), Program 20.60--School/Law Enforcement
Partnership Programs  . . .  4,481,000 
 9,481,000 

Schedule:

(a) 20.60.020.001-Partnership Minigrants/Safe School Planning  . . .

 3,501,000 
 5,951,000 

(b) 20.60.020.012-Conflict Resolution  . . .  280,000

 380,000 

(c) 20.60.020.013-School Community Violence Prevention  . . .

700,000 
 3,150,000 

Provisions:

1. The amount in Schedule (a) includes $2,873,000 in Supplemental
Grant funds that have been designated by school districts for school
safety purposes pursuant to Section 17 of Chapter 308, Statutes of
1995.

6110-230-0001--For local assistance, Department of Education
(Proposition 98), for transfer to Section A of the State School Fund,

for allocation by the Superintendent of Public Instruction to school
districts, county offices of education, and other education agencies
for
the purposes of the Proposition 98 educational programs funded in
this
item, in lieu of amounts otherwise provided for those programs by
statute  . . . 2,339,486,000

Provisions:

1. The Superintendent of Public Instruction shall take action, in a
manner consistent with state policy as expressed in statute and with
the purposes of this act, to ensure the orderly administration of
state-funded education programs conducted by local agencies. The
allocations for the 1998-99 fiscal year of state aid for these
programs
shall be in the same amounts as the 1997-98 fiscal year allocations,
excluding Partnership Academies, instructional materials for
kindergarten and grades 1 to 8, inclusive, and instructional
materials
for grades 9 to 12, inclusive, adjusted as appropriate to reflect
changes
in other state, federal, and local revenues, and the designation of
supplemental grant funds to categorical programs pursuant to Section
17 of Chapter 308 of the Statutes of 1995. The Superintendent of
Public Instruction shall apportion funds from the program allocations

to each school district, county office of education, or other
education
agency in a manner consistent with the policies, formulas,
regulations,
and statutes governing those apportionments, including the
appropriate
program and schedule provisions set forth in Senate Bill 89 of the
1995-96 Regular Session as amended in the Senate May 30, 1995. If
the funds appropriated by this item are less than the amount
necessary
for these programs, the Superintendent shall apportion the deficiency

on a proportional basis across all programs. If funding appropriated
by
this item is greater than the amount necessary for these programs,
the
Superintendent of Public Instruction shall direct that the excess
funds
be transferred by the Controller to the State Instructional Materials

Fund for the 1998-99 fiscal year for the purchase of instructional
materials for kindergarten and grades 1 to 8, inclusive, or grades 9
to
12, inclusive.

2. Notwithstanding any other provision of law, not more than 15
percent of the amount apportioned to any school district, county
office
of education, or other education agency under this item for any
program may be expended by that recipient for the purposes of any
other program for which the recipient is eligible for funding under
this
item, except that the total amount of funding allocated to the
recipient
under this item that is expended by the recipient for the purposes of

any program pursuant to this item shall not exceed 120 percent of the

amount of state funding allocated pursuant to Provision 1 to that
recipient for that program for the 1998-99 fiscal year.

3. The educational programs that are not eligible for funding under
this
item are those programs funded by the following items of the Budget
Act of 1997 (Ch. 282, Stats. 1997): Items 6110-001-0001,
6110-001-0178, 6110-001-0231, 6110-001-0344, 6110-001-0687,
6110-001-0890, 6110-001-0975, 6110-002-0001, 6110-003-0001,
6110-004-0001, 6110-005-0001, 6110-006-0001, 6110-006-0814,
6110-007-0001, 6110-008-0001, 6110-009-0001, 6110-011-0001,
6110-013-0001, 6110-015-0001, 6110-021-0001, 6110-096-0001,
6110-101-0231, 6110-101-0349, 6110-101-0814, 6110-101-0890,
6110-101-0975, 6110-102-0001, 6110-102-0231, 6110-102-0890,
6110-103-0001, 6110-103-0890, 6110-104-0001, 6110-105-0001,
6110-111-0890, 6110-112-0001, 6110-112-0890, 6110-113-0001,
6110-117-0001, 6110-128-0890, 6110-129-0001, 6110-130-0001,
6110-136-0890, 6110-139-0001, 6110-141-0890, 6110-142-0890,
6110-152-0001, 6110-156-0001, 6110-156-0890, 6110-158-0001,
6110-161-0001, 6110-161-0890, 6110-162-0001, 6110-165-0001,
6110-166-0890, 6110-176-0890, 6110-180-0001, 6110-180-0890,
6110-181-0465, 6110-183-0890, 6110-184-0001, 6110-185-0001,
6110-186-0001, 6110-190-0001, 6110-194-0001, 6110-196-0001,
6110-196-0890, 6110-200-0001, 6110-201-0890, 6110-202-0001,
6110-226-0001, 6110-234-0001, and 6110-295-0001.

4. The reduction of the maximum allowable building area for each
applicant school district pursuant to Section 17746.8 of the
Education
Code shall be a permanent reduction to the district's eligibility for

funding under Chapter 22 (commencing with Section 17700) of Part
10 of the Education Code. To the extent feasible, the reduction shall

be applied to district projects that represent the same grade levels
of
the pupils for which the district is claiming funding pursuant to
Section 42263 of the Education Code.

5. Notwithstanding Provision 3, local education agencies may use the
authority granted pursuant to Provision 2 of this item to provide the

funds necessary to initiate, to continue support following the three-
to
five-year state grant period, or to expand, a Healthy Start Program
pursuant to Chapter 5 (commencing with Section 8800) of Part 6 of
the Education Code.

6. Notwithstanding Provision 3 of this item, local education agencies

may use the authority granted pursuant to Provision 2 of this item to

provide the funds necessary to initiate a conflict resolution program

pursuant to Chapter 2.5 (commencing with Section 32260) or Part 19
of the Education Code.

7. The amount appropriated by this item includes funds for the
environmental education program established by Chapter 4
(commencing with Section 8700) of Part 6 of the Education Code and
the school-based management program established by Article 12
(commencing with Section 44666) of Chapter 3 of Part 25 of the
Education Code.

8. For purposes of Section 42263 of the Education Code, the statewide

average cost avoided per pupil for the 1998-99 fiscal year shall be
the
amount determined for that purpose for the 1997-98 fiscal year.

9. As a condition of receiving funding under this item, each school
district that receives reimbursement for the costs of a desegregation

program or programs shall submit a report to the Legislature on or
before March 1, 1999, on the use of those funds. The report shall
include, but not be limited to, the following information: (1) how
the
funds received for a desegregation program or programs have been
used to alleviate the harmful effects of racial isolation; and (2)
how the
funds received for a desegregation program or programs have been
used to improve the academic performance of pupils in schools that
receive desegregation funds. If the report required by this provision
is
not received from any school district by March 1, 1999, the
Controller
may not pay the reimbursement claim for desegregation costs of the
district for the 1998-99 school year.

10. As a condition of receiving funds apportioned from this item for
general staff development purposes, school districts shall use these
funds on a priority basis to ensure that (1) each probationary
certificated employee assigned to a school within the district as a
new
teacher receives appropriate training, assistance, and evaluation and

(2) state categorical funding for administrator training is
supplemented, as needed, so that personnel assigned to evaluate
teachers achieve competence in instructional methodologies and
evaluation for teachers they are assigned to evaluate.

6110-231-0001--For local assistance, Department of Education,
(Proposition 98), for transfer to Section A of the State School Fund,

for allocation by the Superintendent of Public Instruction to school
districts and county offices of education for the purpose of the
Proposition 98 educational programs funded in Item 6110-230-0001
. . . 67,831,000

Provisions:

1. Of the funds appropriated by this item $67,831,000 shall be
allocated to all school districts and county offices of education in
the
state on the basis of an equal amount per unit of average daily
attendance for the Proposition 98 educational programs funded in Item

6110-230-0001.

6110-232-0001--For local assistance, Department of Education
(Proposition 98), Program 20.40--Class Size Reduction Program:

7th and 8th Grade Mathematics and Language Arts  . . . 112,000,000
 

    9th Grade  . . . 88,900,000

Provisions:

1. The funds appropriated by this item are to expand the Morgan/Hart
Class Size Reduction Program for grades 9 to 12, inclusive, pursuant
to enactment of legislation during the 1997-98 Regular Session that
becomes operative on or before January 1, 1999. 

6110-233-0001--For local assistance, Department of Education
(Proposition 98), for transfer to Section A of the State School Fund,

for allocation by the Superintendent of Public Instruction to school
districts, county offices of education, and other agencies receiving
funding under Item 6110-230-0001 for the purposes of Proposition 98
educational programs funded in Item 6110-230-0001  . . . 94,146,000

Provisions:

1. The funds appropriated by this item are for the purpose of
providing
cost-of-living adjustments and enrollment growth funding, to be
distributed to each program that is funded under Item 6100-230-0001
in an amount that is proportionate to the base funding level of the
program in the 1997-98 fiscal year, excluding Partnership
Academies  , K-8 instructional materials, and 9-12
instructional
materials.    instructional materials. 

6110-234-0001--For local assistance, Department of Education
(Proposition 98), for transfer to Section A of the State School Fund,

for allocation by the Superintendent of Public Instruction for the
Class
Size Reduction Program pursuant to Chapter 6.10 (commencing with
Section 52120) of Part 28 of the Education Code  . . . 1,545,530,000

Schedule:

(a) 10.25-Class Size Reduction  . . . 1,545,530,000

Provisions:

1. It is the intent of the Legislature that the first priority for
any unused
funds appropriated pursuant to Chapter 6.10 (commencing with
Section 52120) of Part 28 of the Education Code for the  1997-98
fiscal year be made available on a one-time basis to assist (1)
eligible
school districts in implementing their approved Comprehensive Plan
to Mitigate the Facilities Impact of Class Size Reduction as
specified
in Section 52122.7 of the Education Code  , and (2) school
districts
that fully implemented three grade levels of class size reduction in
the
1996-97 fiscal year, so that these school districts may be eligible
to
receive up to $40,000 for each new teaching station for facilities
needed to expand the Class Size Reduction Program in the 1997-98
fiscal year beyond the number of new classes established in the
1996-97 fiscal year  .

6110-235-0001--For local assistance, Department of Education,
(Proposition 98), Program 10.10, Instruction, for the Year Round
School Grant Program established pursuant to Section 42260 to
Section 42268, inclusive, of the Education Code  . . . 3,000,000

Provisions:

1. The funds appropriated in this item are for transfer to Section A
of
the State School Fund, to augment the funding provided for this
program in Item 6110-230-0001 of this act.

6110-280-0001--For local assistance, Department of Education
(Proposition 98), Program 20.40.100-High Risk Youth  . . . 600,000

Provisions:

1. The funds appropriated by this item are for allocation by the
State
Department of Education to the Los Angeles Unified School District
for services to at-risk youth that participate in a program that
meets the
criteria specified in subdivision (a) of Section 41 of Chapter 299 of
the
Statutes of 1997.

 6110-294-0001--For local assistance, Department of Education
(Proposition 98)-Legislative Priority Set-Aside  . . . 10,000,000

Provisions:

1. Funds appropriated by this item are for the purpose of funding
legislative priorities pursuant to legislation enacted during the
1997-98
Regular Session. 

6110-295-0001--For local assistance, Department of Education
(Proposition 98), for reimbursement, in accordance with the
provisions
of Section 6 of Article XIII B of the California Constitution or of
Section 17561 of the Government Code, of the cost of any new
program or increased level of service of an existing program mandated

by statute or executive order, Controller  . . . 146,467,000

Schedule:

(1) 98.01.003.677-Annual Parent Notification (Ch. 36, Stats. 1977, et

al.)  . . . 1,855,000

(2) 98.01.008.786-School Discipline Rules (Ch. 87, Stats. 1986)  . .
.
1,257,000

(3) 98.01.016.193-Intradistrict Attendance (Ch. 161, Stats. 1993)  .
.
. 2,220,000

(4) 98.01.017.201-Interdistrict Attendance (Ch. 172, Stats. 1986)  .
.
. 983,000

(5) 98.01.017.286-Interdistrict Transfer Parent's Employment (Ch.
172, Stats. 1986)  . . . 889,000

(6) 98.01.030.697-Choice Transfer Appeals (Ch. 306, Stats. 1997)  .
. . 866,000

(7) 98.01.048.675-Test Claims and Reimbursement Claims (Ch. 486,
Stats. 1975)  . . . 6,937,000

(8) 98.01.049.801-Graduation Requirements (Ch. 498, Stats. 1993)
. . . 3,769,000

(9) 98.01.049.802-Notices of Truancy (Ch. 498, Stats. 1983)  . . .
5,613,000

(10) 98.01.062.492-Schoolbus Safety (Ch. 624, Stats. 1992)  . . .
687,000

(11) 98.01.064.186-Open Meetings Act (Ch. 641, Stats. 1986)  . . .
1,964,000

(12) 98.01.078.192-Charter Schools (Ch. 781, Stats. 1992)  . . .
684,000

(13) 98.01.079.980-PERS Death Benefits (Ch. 799, Stats. 1980)  . . .

710,000

(14) 98.01.081.891-AIDS Prevention Instruction (Ch. 818, Stats.
1991)  . . . 3,945,000

(15) 98.01.096.175-Collective Bargaining (Ch. 961, Stats. 1975)  . .

. 31,942,000

(16) 98.01.096.501-Pupil Classroom Suspension (Ch. 965, Stats.
1977)  . . . 4,293,000

(17) 98.01.096.577-Public Health Screenings (Ch. 965, Stats. 1977)
. . . 3,211,000

(18) 98.01.101.184-Juvenile Court Records (Ch. 1011, Stats. 1984)
. . . 184,000

(19) 98.01.103.670-STRS Rate Increase (Ch. 1036, Stats. 1979)  . . .

52,085,000

(20) 98.01.110.784-Removal of Chemicals (Ch. 1107, Stats. 1984)  .
. . 1,476,000

(21) 98.01.117.677-Immunization Records (Ch. 1176, Stats. 1977)  .
. . 4,303,000

(22) 98.01.125.375-Expulsion Transcripts (Ch. 1253, Stats. 1975)  .
. . 8,000

(23) 98.01.128.488-Pupil Suspensions: Parents Classroom Visits (Ch.
1284, Stats. 1988)  . . . 225,000

(24) 98.01.130.689-Notification to Teachers of Public Expulsion (Ch.

1306, Stats. 1989)  . . . 1,856,000

(25) 98.01.134.780-Scoliosis Screening (Ch. 1347, Stats. 1980)  . . .

2,151,000

(26) 98.01.139.874-PERS Unused Sick Leave Credit (Ch. 1398, Stats.
1974)  . . . 2,938,000

(27) 98.01.160.784-School Crimes Reporting (Ch. 1607, Stats. 1984)
. . . 1,754,000

(28) 98.01.165.984-Emergency Procedures (Ch. 1659, Stats. 1984)
. . . 7,036,000

(29) 98.01.167.584-School Testing-Physical Fitness (Ch. 1675, Stats.

1984)  . . . 626,000

Provisions:

1. Except as provided in Provisions 2 and 4, allocations of funds
appropriated by this item shall be made by the Controller in
accordance with the provisions of each statute or executive order
that
mandates the reimbursement of the costs, and shall be audited to
verify
the actual amount of the mandated costs in accordance with
subdivision (d) of Section 17561 of the Government Code. Audit
adjustments to prior year claims may be paid from this item. Funds
appropriated by this item may be used to provide reimbursement
pursuant to Article 5 (commencing with Section 17615) of Chapter 4
of Part 7 of Division 4 of Title 2 of the Government Code.

2. The funds appropriated in Schedule (19) are for transfer to the
State
Teachers' Retirement Fund for the State Teachers' Retirement System
for reimbursement of costs incurred pursuant to Chapter 1036 of the
Statutes of 1979.

3. If any of the scheduled amounts are insufficient to provide full
reimbursement of costs, the Controller may, upon approval of the
Director of Finance, augment those deficient amounts from the
unencumbered balance of any other scheduled amounts therein. No
order may be issued pursuant to this provision unless written
notification of the necessity therefor is provided to the chairperson
of
the committee in each house of the Legislature that considers
appropriations and the Chairperson of the Joint Legislative Budget
Committee or his or her designee.

4. Notwithstanding any other provision of law, the funds appropriated

in Schedules (13) and (26) are for transfer to the Public Employees'
Retirement System for reimbursement of costs incurred pursuant to
Chapter 1398 of the Statutes of 1974 or Chapter 799 of the Statutes
of
1980.

6110-401--For maintenance of accounting records by the State
Controller's office and the Department of Education or any other
agency maintaining such records, appropriations made in this act for
agency 6110 (Department of Education) are to be recorded under
agency 6100 (Department of Education).

6110-402--Notwithstanding any provision of law to the contrary, no
funds appropriated by this act, or by any act enacted prior to the
enactment of this act, shall be, in the absence of a court order,
deemed
appropriated or available for expenditure for purposes of claims for
vocational education average daily attendance arising from Section
46140 of the Education Code as it read prior to the enactment of
Chapter 1230 of the Statutes of 1977.

6110-403--In the event the bonds authorized for the Capital Area Plan

project in Chapter 761, Statutes of 1997 are not sold, the Department

of Education shall commit a sufficient portion of its support
appropriation, as determined by the Department of Finance, which is
provided for in this Budget Act to repay any interim financing. It is
the

intent of the Legislature that this commitment shall be included in
future Budget Acts until all interim financing is repaid either
through
the proceeds from the sale of bonds or from an appropriation.

 6110-485--Reappropriation (Proposition 98), Department of
Education. The sum of $44,152,000 is reappropriated from the
Proposition 98 Reversion Account, for the following purpose:

0001--General Fund

(c) The sum of $30,000,000 is hereby appropriated from the
Proposition 98 Reversion Account to the State Department of
Education for allocation to school districts and county offices of
education for staff development in mathematics pursuant to
legislation
enacted during the 1997-98 Regular Session.

(d) $1,053,000 is appropriated from the Proposition 98 Reversion
Account for allocation by the State Department of Education for lead
testing of drinking water in public schools. 

6110-490--Reappropriation, Department of Education.
Notwithstanding any other provision of law, the unencumbered
balances are reappropriated from the following citations, for the
purpose specified, and shall be available for encumbrance and
expenditure until June 30, 1999:

001--General Fund

 (1) The unencumbered balance as of June 30, 1998, of funds
appropriated in Section 27 of Chapter 204 of the Statutes of 1996, is

reappropriated to reimburse districts for second-year costs incurred
in
operating Single Gender Academies in the 1998-99 fiscal year.

(3)

  (1)   The  unexpended   balance
as of June
30, 1998, from Schedule (c) of Item  6110-107-001 

6110-107-0001   of Section 2.00 of the Budget Act of 1995 (Ch.
303, Stats. 1995) to augment Schedule (d) of Item 6110-107-0001 of
this act, for the  County Office   Fiscal Crisis and
Management Assistance Team for technology costs related to
providing staff development in the 1998-99 fiscal year.

 (4)

  (2)   The  unencumbered 
balance as of June
30, 1998, from Item 6110-184-0001 of Section 2.00 of the Budget Act
of 1997 (Ch. 282, Stats. 1997), is reappropriated for the purpose of
funding, in the 1998-99 fiscal year, applications for grants that
were
eligible but not awarded in the 1997-98 fiscal year.

 (5)

  (3)   The   unencumbered 
balance as of June
30, 1998, of Item 6110-124-0001 of Section 2.00 of the Budget Act of
1996 (Ch. 162, Stats. 1996), is reappropriated for services to pupils

participating in the Gifted and Talented Education (GATE) program
to be used for onetime purposes.

 (4) The balance, as of June 30, 1998, from Schedules (b)(1)
General Child Care, (b)(3) High School Parenting and Infant
Development, (b)(4) Migrant Day Care, and (b)(8) Extended Day Care
from Item 6110-196-0001 of Section 2.00 of the Budget Act of 1997
(Ch. 282, Stats. 1997), for transfer to the Child Care Facilities
Revolving Fund established pursuant to Section 8278.3 of the
Education Code. 

6110-495--Reversion, Department of Education, Proposition 98. The
unencumbered balance as of June 30, 1998, of the appropriation
provided for in the following citation shall revert to the
Proposition 98
Reversion Account:

1. Chapter 525 of the Statutes of 1995, Section 13, Standardized
Account Code Structure.

2. Chapter 204 of the Statutes of 1996, Section 37, California Public

School Library Protection Fund. 

4. Chapter 299, Statutes of 1997, Sections 40.3, 40.4, and 40.5

  3. Sections 40.3, 40.4, and 40.5 of Chapter 299 of
the
Statutes of 1997  , for instructional services to CalWORKs
recipients through Regional Occupation Centers/Programs and adult
education programs. However, the amounts reverted shall be limited
to the unexpended balances above $12,500,000, so that no more than
$12,500,000 remains available for expenditure. The State Department
of Education shall provide a report to the Department of Finance by
February 1, 1999, identifying the programs and amounts of expended
funds and the amount of funds reverted hereunder.

 4. Item 6100-190-0001 of Section 2.00 of the Budget Act of 1997

(Ch. 282, 1997 Stats.), Community Day Schools Program.

5. Item 6100-112-0001 of Section 2.00 of the Budget Act of 1997 (Ch.

282, 1997 Stats.), Staff Development Day Buyout. 

6115-001-0001--For support of the Commission for the Establishment
of Academic Content and Performance Standards  . . . 704,000

Schedule:

(a) 10-Standards Development  . . . 704,000

6120-011-0001--For support of California State Library, Division of
Libraries, and California Library Services Board  . . . 13,407,000

Schedule:

(a) 10-State Library Services  . . . 12,927,000

(b) 20-Library Development Services  . . . 2,828,000

(c) 30-Information Technology Services  . . . 972,000

(d) 40.01 Administration  . . . 1,541,000

(e) 40.02 Distributed Administration  . . . -1,541,000

(f) Reimbursements  . . . -462,000

(g) Amount payable from the Federal Trust Fund (Item
6120-011-0890)  . . . -2,858,000

6120-011-0020--For support of the California State Library, Program
10--State Library Services, for support of the State Law Library  . .
.
544,000

Provisions:

1. The Director of Finance may authorize the augmentation of the
total
amount available for expenditure under this item in the amount of
revenue received by the State Law Library Special Account which is
in addition to the revenue appropriated by this item or in the amount

of funds unexpended from previous fiscal years, not sooner than 30
days after notification in writing to the chairpersons of the fiscal
committees of each house and the Chairperson of the Joint Legislative

Budget Committee.

6120-011-0890--For support of California State Library, for payment
to Item 6120-011-0001, payable from the Federal Trust Fund  . . .
2,858,000

6120-012-0001--For support of the California State Library, for debt
service payments on lease revenue bonds  . . . 653,000

Schedule:

(a) Base Rental and Fees  . . . 1,523,000

(b) Insurance  . . . 24,000

(c) Reimbursements  . . . -894,000

 6120-101-0001--For local assistance, California State Library
.
. . 50,000

Provisions:

1. Funds appropriated by this item are for the purpose of funding
asbestos removal at the Garden Grove Regional Library. These funds
are to be allocated on a one-time basis only. 

6120-211-0001--For local assistance, California State Library,
Program 20--Library Development Services  . . .  16,426,000

 17,026,000 

Schedule:

(a) 20.10--California Literacy Campaign  . . .  3,490,000

 4,090,000 

(b) 20.20--Families for Literacy Program  . . . 876,000

(c) 20.30--Direct Loan and Interlibrary Loan Programs  . . .
8,600,000

(d) 20.40--Computerized Data Base pursuant to Section 18767 of the
Education Code  . . . 275,000

(e) 20.50--California Library Services Act pursuant to Chapter 4
(commencing with Section 18700) of Part 11 of the Education Code
. . . 3,185,000

Provisions:

1. Should the funds appropriated in Schedule (c) be insufficient to
fully cover all transactions under the Direct Loan and Interlibrary
Loan
programs of the California Library Services Act, funding shall be
prorated such that expenditures for the program are within the
appropriation made in Schedule (c) of this item.

6120-211-0890--For local assistance, California State Library,
Program 20--Library Development Services, payable from the Federal
Trust Fund  . . . 11,901,000

6120-221-0001--For local assistance, California State Library Program

20-Library Development Services-Public Library Foundation Program
. . . 62,750,000

Provisions:

1. Notwithstanding any other provision of law, for the 1998-99 fiscal

year, the date on or before which the fiscal officer of each public
library shall report to the State Librarian the information specified
in
Section 18023 of the Education Code shall be December 1, 1998.

2. Notwithstanding any other provision of law, for the 1998-99 fiscal

year, the date on or before which the Controller shall distribute
funds
to the fiscal officer of each public library as specified in Section
18026
of the Education Code shall be February 15, 1999.

3. It is the intent of the Legislature that the funds appropriated by
this
item be allocated consistent with the provisions of Chapter 167 of
the
Statutes of 1997.

6120-301-0001--For capital outlay, California State Library  . . .
30,000

Schedule:

(1) 10.04.001--Sutro Library; Long Term Needs Assessment--Study
. . . 30,000

6255-001-0001--For support of California State Summer School for
the Arts, Program 10  . . . 725,000

 6260-001-0001--For support of California State Summer School

for Math and Science, Program 10  . . . 1,000,000 

6330-001-0890--For support of the California Occupational
Information Coordinating Committee, payable from the Federal Trust
Fund  . . . 284,000

6360-001-0001--For support of the Commission on Teacher
Credentialing, for the purpose of administering the Paraprofessional
Teacher Training Program  . . .  150,000 
 755,000 

Schedule:

(a) 10-Standards for Preparation and Licensing of Teachers  . . .

150,000 
 755,000 

 Provisions:

1. Of the funds appropriated by this item, $66,000 shall be available

for administrative costs related to the Alternative Certification
Program pursuant to Article 11 (commencing with Section 44380) of
Chapter 2 of Part 25 of the Education Code.

2. Of the funds appropriated by this item, $140,000 shall be
available
for administrative costs related to the Beginning Teacher Support and

Assessment System pursuant to Article 4.5 (commencing with Section
44279.1) of Chapter 2 of Part 25 of the Education Code.

3. Of the funds appropriated by this item, $60,000 shall be available

for administrative costs related to the California School
Paraprofessional Teacher Training Program pursuant to Article 12
(commencing with Section 44390) of Chapter 2 of Part 12 of the
Education Code.

4. Of the funds appropriated by this item, $49,000 shall be available

for administrative costs related to the California Pre-Internship
Program pursuant to Article 5.6 (commencing with Section 44305) of
Chapter 2 of Part 12 of the Education Code.

5. Of the funds appropriated by this item, $350,000 shall be
available
for administrative costs related to the development of integrated
programs of professional and subject matter preparation. These funds
shall be available only if authorizing legislation is enacted during
the
1997-98 Regular Session.

6. Of the funds appropriated by this item, $90,000 shall be available

for administrative costs related to the review of teacher credential
reciprocity. These funds shall be available only if authorizing
legislation is enacted during the 1997-98 Regular Session. 

6360-001-0407--For support of Commission on Teacher
Credentialing, payable from the Teacher Credentials Fund  . . .

17,865,000 
 15,635,000 

Schedule:

(a) 10-Standards for Preparation and Licensing of Teachers  . . .

17,865,000 
 15,635,000 

(b) 10.40.010-Departmental Administration  . . . (3,487,000)

(c) 10.40.020-Distributed Departmental Administration  . . .
(-3,487,000)

Provisions:

1. The amount appropriated by this item may be increased based on
increases in credential applications, increases in first-time
credential
applications requiring fingerprint clearance, unanticipated costs
associated with certificate discipline cases, or unanticipated costs
of
litigation, subject to approval of the Department of Finance, not
sooner
than 30 days after notification in writing to the chairpersons of the

fiscal committees of each house and the Chairperson of the Joint
Legislative Budget Committee.

2. Notwithstanding Section 44234 of the Education Code, funds that
are set aside for pending litigation costs shall not be considered
part of
the reserve of the Teacher Credentials Fund for purposes of
subdivision (b) of Section 44234 of the Education Code.

3. Of the funds appropriated by this item,  $1,500,000
 
$250,000   is for the design, development, and testing of a
performance assessment that will be used statewide with new teachers.

These funds shall be available only if authorizing legislation is
enacted
during the 1997-98 Regular Session.

 4. Of the funds appropriated by this item, $350,000 for the

development of a "fast-track" teacher education program for
university
undergraduates who decide early in their college years to become
teachers. These funds shall be available only if authorizing
legislation
is enacted during the 1997-98 Regular Session.

  4. Of the funds appropriated by this item, funds
provided
for credential processing may also be used for provision of technical

assistance to applicants, teacher preparation programs, and school
districts. 

6360-001-0408--For support of Commission on Teacher
Credentialing, payable from the Test Development and Administration
Account of the Teacher Credentials Fund  . . .  8,361,000

 9,461,000 

Schedule:

(a) 10-Standards for Preparation and Licensing of Teachers  . . .

8,361,000 
 9,461,000 

Provisions:

1. The amount appropriated by this item may be increased for
unanticipated costs of litigation, or for costs from increases in the

number of examinees, subject to approval of the Department of
Finance, not sooner than 30 days after notification in writing to the

chairpersons of the fiscal committees of each house and the
Chairperson of the Joint Legislative Budget Committee.

2. Notwithstanding Section 44234 of the Education Code, funds that
are set aside for pending litigation costs shall not be considered
part of
the reserve of the Teacher Credentials Fund for purposes of
subdivision (b) of Section 44234 of the Education Code.

 3. Of the funds appropriated by this item, $1,100,000 shall be
available for the design, development, and testing of a performance
assessment that will be used statewide with new teachers. These funds

shall be available only if authorizing legislation is enacted during
the
1997-98 Regular Session. 

6360-001-0890--For support of Commission on Teacher
Credentialing, payable from the Federal Trust Fund  . . . 159,000

Schedule:

(a) 10-Standards for Preparation and Licensing of Teachers  . . .
159,000

6360-101-0001--For local assistance, Commission on Teacher
Credentialing (Proposition 98)  . . . 34,628,000

Schedule:

(a) 10-Standards for Preparation and Licensing of Teachers  . . .
34,628,000

Provisions:

1. Of the funds appropriated by this item, $11,000,000 is for
incentive
grant funding to school districts and county offices of education
participating in the alternative teacher certification program
established in Article 11 (commencing with Section 44380) of Chapter
2 of Part 25 of the Education Code.

2. Of the funds appropriated by this item, $11,478,000 shall be
available for grants and subventions to school districts and county
offices of education participating in the California School
Paraprofessional Teacher Training Program pursuant to Article 6.5
(commencing with Section 69619) of Chapter 2 of Part 42 of the
Education Code.

3. Of the funds appropriated by this item, $350,000 shall be used to
reimburse county offices of education for costs associated with
monitoring public schools and school districts for teacher
misassignments. Funds shall be allocated on a basis determined by the

Commission. Districts and county offices receiving funds for
credential monitoring will provide reasonable and necessary
information to the Commission as a condition of receiving these
funds.

4. Of the funds appropriated in this item, $11,800,000 is for the
Pre-Internship Teaching Program, as set forth in Article 5.6
(commencing with Section 44305) of Chapter 2 of Part 25 of the
Education Code.

6420-001-0001--For support of California Postsecondary Education
Commission  . . .  3,399,000 
 3,579,000 

Schedule:

(a) 100000-Personal Services  . . .  2,632,000 
 2,576,000 

(b) 300000-Operating Expenses and Equipment  . . .  1,107,000


 1,343,000 

(c) Reimbursements  . . . -16,000

(d) Amount payable from the Federal Trust Fund (Item
6420-001-0890)  . . . -324,000

6420-001-0890--For support of California Postsecondary Education
Commission, for payment to Item 6420-001-0001, payable from the
Federal Trust Fund  . . . 324,000

6420-101-0001--For local assistance, California Postsecondary
Education Commission, for Pipeline Program grants  . . . 119,000

6420-101-0890--For local assistance, California Postsecondary
Education Commission, payable from the Federal Trust Fund  . . .
6,165,000

6440-001-0001--For support of University of California  . . .

2,384,004,000 
 2,351,969,000 

Schedule:

(a) Support  . . .  2,284,862,000 
 2,251,827,000 

 (b) Charles R. Drew Medical Program  . . . 8,567,000

  (b) Charles R. Drew Medical Program  . . . 9,567,000


(c) Podiatry Program  . . . 857,000

(d) Mathematics, Engineering and Science Achievement (MESA)  . .
. 3,553,000

(e) Acquired Immune Deficiency Syndrome (AIDS) Research  . . .
8,445,000

(f) Institute of Global Conflict and Cooperation  . . . 550,000

(g) Student Financial Aid  . . . 52,865,000

(h) Loan Repayments  . . . 5,105,000

(i) San Diego Supercomputer Center  . . . 4,000,000

(j) Mathematics, Science and Arts Outreach Programs  . . . 3,000,000

(k) Subject Matter Projects  . . . 12,200,000

Provisions:

1. The appropriations made by this item are exempt from Section
31.00 of this act.

2. None of the funds appropriated by this item may be expended to
initiate major capital outlay projects by contract without prior
legislative approval, except for cogeneration and energy conservation

projects. Exempted projects shall be reported in a manner consistent
with the reporting procedures in subsection (d) of Section 28.00 of
this
act.

3. The funds appropriated in Schedule (b) are for support of
University
of California program of clinical health sciences education,
research,
and public service, conducted in conjunction with the Charles R. Drew

Postgraduate Medical School, as provided for in Sections 1, 2, and 3
of Chapter 1140 of the Statutes of 1973. Of the amount appropriated,
$500,000 is contingent upon the provision by the University of
California of an equal amount of matching funds from its own
resources. The University of California shall ensure by adequate
controls that funds appropriated by Schedule (b) are expended solely
for the support of the program identified in that schedule.

4. The funds appropriated in Schedule (c) are for support of a
program
of basic and clinical health science education and primary health
care
delivery research in the field of podiatry, University of California,
to
be conducted in conjunction with the California College of Podiatric
Medicine as provided for in Sections 1 to 4, inclusive, of Chapter
1497
of the Statutes of 1974.

5. Of the amount appropriated in Schedule (a), $2,629,957 shall be
available for expenditure only for support of the Northern and
Southern Occupational Health Centers as established by a contract
entered into with the Department of Industrial Relations pursuant to
Section 50.8 of the Labor Code.

6. The funds appropriated in Schedule (g) are for support of Program
45, Student Financial Aid, to provide financial aid to needy students

attending the University of California, according to the nationally
accepted needs analysis methodology.

7. Of the amount appropriated in Schedule (a), $7,240,800 is for
payment of energy service contracts in connection with the issuance
of Public Works Board Energy Efficiency Revenue Bonds.

8. Of the amount appropriated in Schedule (h), $2,700,000 is for
repayment of $25,000,000 borrowed by the University of California
for deferred maintenance in the 1994-95 fiscal year. It is the intent
of
the Legislature to annually provide funds for that repayment purpose
through the 2009-10 fiscal year.

9. Of the amount appropriated in Schedule (h), $2,405,000 is for
repayment of $25,000,000 borrowed by the University of California
for deferred maintenance in the 1995-96 fiscal year. It is the intent
of
the Legislature to annually provide funds for that repayment purpose
through the 2010-11 fiscal year.

 10. It is the intent of the Legislature that of the funds
provided in
Schedule (a), $33,000,000 is provided for outreach to be used to fund

new and existing programs that are aimed at improving the chances for

students from a wide diversity of backgrounds to become eligible for
the University of California. It is the intent of the Legislature
that at
least $20,500,000 of these funds be used to expand the Mesa, Puente,
and Early Outreach programs so that these programs may increase the
number of students who participate and so that these programs may
offer services such as college admissions test preparation programs,
provide fee waivers for Advanced Placement tests, and increase the
number of field trips for high school and middle school participants
to
visit college campuses. It is further the intent of the Legislature
that at
least $1,000,000 of these funds be used to expand outreach efforts in

the Central Valley, $2,000,000 be used to expand and enhance
community college transfer centers, and $2,500,000 be used to expand
the outreach efforts at professional schools. The remainder of the
funds should be used to expand other university outreach efforts such

as K-12 partnership programs, dissemination of information, research
and evaluation, and charter schools.

  10. Of the amount appropriated in schedule (a),
$38,500,000 is provided for outreach to be used to fund new and
existing programs that are aimed at improving the chances for pupils
from a  wide diversity of backgrounds to become eligible for the
University of California, as follows:

(b) The following amounts are for pupil academic development and
school partnership programs and shall be matched on a one-to-one
basis by the participating schools:

(1) $15,000,000 is to expand pupil academic development programs,
including MESA, Puente, and the Early Academic Outreach Program,
so that these programs may increase the number of pupils who
participate in the programs and may offer services such as college
admissions test preparation programs, fee waivers for Advance
Placement tests, and an increased number of field trips for high
school
and middle school participants to visit college campuses.

(2) $15,000,000 is provided for the expansion of K-12 school
partnership programs to systemically reform partner schools in order
to achieve long-term improvements in student success.

(3) $1,000,000 is provided to expand both pupil academic
development programs and K-12 partnership programs in the Central
Valley.

(c) $3,500,000 is provided for expansion of services to community
college students to promote transfer.

(d) $1,000,000 is provided for informational outreach to pupils,
families, and K-12 teachers and counselors.

(e) $1,000,000 is provided for charter schools.

(f) $500,000 is provided for outreach by professional schools to be
matched on a one-to-one basis by those professional schools.

(g) $1,500,000 is provided for long-term evaluation of the
effectiveness of outreach programs, including college graduation
rates
for pupils who participated in the K-12 programs, regardless of the
college attended. 

11. Of the funds appropriated in Schedule (a), $500,000 shall be
expended for the Center for Earthquake Engineering Research,
contingent upon the center continuing to receive federal  matching
funds from the National Science Foundation.

12. Of the funds appropriated by Schedule (a), $800,000 shall be
expended for the International Thermonuclear Experimental Reactor
Design Center, contingent upon the center continuing to receive
federal matching funds.

13. Of the funds appropriated in Schedule (a),  $235,000

  $500,000   shall be expended for viticulture and enology
research contingent upon the receipt of an equal amount of private
sector matching funds.

14. Of the amount appropriated in Schedule (j), $1,500,000 is for
Arts
Bridge programs that give university students scholarships to work as

"artists in residence" in public schools. The University of
California
shall ensure that 75 percent of these efforts are targeted at
low-performing schools. The University of California shall provide a
report of the expenditures of this program to the California Arts
Council by September 30, 1999.

15. Of the amount appropriated in Schedule (j), $1,500,000 is for
Community Teaching Internships for Mathematics and Science
programs. These programs shall provide stipends to juniors and
seniors majoring in math, science, and engineering, who work in local

public schools as teaching interns. 

16. Of the funds appropriated in Schedule (a), $500,000 is for the
development of courses for the California Virtual University.

17.

  16.   Of the funds appropriated in Schedule (a),

$16,810,000 is for substance abuse research at the University of
California, San Francisco campus in the Neurology Department.

 18.

  17.   Notwithstanding Section 2.00 of this act,
an
amount not to exceed $1,000,000 may be used for working drawings
and preliminary plans related to the construction of a building to
house
the physician training and education program conducted by the San
Francisco campus in Fresno.

 19.

  18.   Of the funds appropriated in Schedule (a),

$1,000,000 shall be available for the purpose of conducting the
California Work Opportunity and Responsibility to Kids (CalWORKs)
program evaluation.

 20.

  19.   Of the funds appropriated in Schedule (a),

$400,000 shall be available for the purpose of continuing the
planning
and survey design work for the California Health Interview Survey to
be conducted by the UCLA Center for Health Policy Research.

 20. It is the intent of the Legislature that the University of
California incorporate service learning into its curricula and
encourage
and help students participate in service learning opportunities.

21. It is the intent of the Legislature that the California State
University report to the Legislature any grade point adjustment
factors
concerning an applicant's undergraduate school that are used in the
process for admissions to their respective professional schools and
graduate programs. This disclosure shall specify the justification
for
the grade weighting policies and shall describe the specific
methodologies used to determine the relative weightings and
adjustments made to the grade point average earned by a student at
each of the various undergraduate schools. 

6440-001-0007--For support of University of California, payable from
the Breast Cancer Research  Account  . . . 16,706,000

Provisions:

1. Notwithstanding subdivision (a) of Section 2.00 of this act, the
funds appropriated by this item shall be available for expenditure
until
June 30, 2001.

6440-001-0046--For support of University of California, Institute of
Transportation Studies, payable from the Public Transportation
Account, State Transportation Fund  . . . 956,000

6440-001-0234--For support of the University of California, payable
from the Research Account, Cigarette and Tobacco Products Surtax
Fund  . . .  11,661,000 
 18,661,000 

Provisions:

1. The funds appropriated by this item are to be allocated for
research
regarding tobacco use, with an emphasis on youth and young adults,
including, but not limited to, the effects of active and passive
smoking,
the primary prevention of tobacco use, nicotine addiction and its
treatment, the effects of secondhand smoke, and public health issues
surrounding tobacco use.

2. Notwithstanding subdivision (a) of Section 2.00 of this act, the
funds appropriated by this item are available for expenditure until
June
30, 2001.

6440-001-0308--For support of the University of California, payable
from the Earthquake Risk Reduction Fund of 1996  . . . 1,500,000

Provisions:

1. The funds appropriated by this item shall be expended for the
Center for Earthquake Engineering Research, contingent upon the
Center continuing to receive federal matching funds from the National

Science Foundation.

6440-001-0321--For support of University of California, payable from
the Oil Spill Response Trust Fund  . . . 1,300,000

Provisions:

1. The funds appropriated by this item shall be available to support
the
Oiled Wildlife Care Network.

6440-001-0814--For support of University of California, for
allocation
by the State Controller in accordance with the provisions of
Government Code Section 8880.5 as enacted by the voters in
Proposition 37 at the November 1984 general election, payable from
the California State Lottery Education Fund  . . . 20,106,000

Provisions:

1. All funds received pursuant to Proposition 37 that are allocable
to
the University of California pursuant to Section 8880.5 of the
Government Code, and that are in excess of the amount ap

propriated in this item are hereby appropriated in augmentation of
this
item.

6440-001-0945--For support of the University of California, payable
from the California Breast Cancer Research Fund  . . . 726,000

Provisions:

1. Notwithstanding subdivision (a) of Section 2.00 of this act, the
funds appropriated by this item shall be available for expenditure
until
June 30, 2001.

6440-002-0001--For support of University of  California  . . .
(55,000,000)

Provisions:

1. Notwithstanding Section 2.00 of this act, the funds appropriated
by
this item are not available for expenditure or encumbrance prior to
July
1, 1999. Claims for these funds shall be submitted by the University
of California on or after July 1, 1999, and before October 1, 1999.

2. No reserve may be established by the State Controller for this
appropriation before July 1, 1999.

6440-003-0001--For support of the University of California, for
payments on lease-purchase bonds.  . . . 90,572,000

Schedule:

(a) Rental, insurance and administrative payments  . . . 97,452,000

(b) Reimbursements  . . . -6,880,000

6440-004-0001--For support of University of California  . . .

9,900,000 
 11,400,000 

Provisions:

1. Funds shall be available for planning and startup costs associated

with academic programs to be offered in the San Joaquin Valley and
planning,  startup costs, and ongoing support for the Merced campus,
including the following: (a) site studies, infrastructure planning,
community planning and development, long-range development plans,
environmental studies, and other physical planning activities; (b)
academic planning activities, support of academic program offerings
prior to the opening of the new campus, and faculty recruitment; (c)
the acquisition of instructional materials and equipment; and (d)
ongoing operating support for faculty, staff, and other annual
operating
expense for the new campus.

2.  Of the funds appropriated by this item, $1,500,000 shall be
used to establish three or four distributed learning centers for
on-site
and distance learning instruction. Notwithstanding Section 6.00 of
this
act, these funds may be used for capital outlay costs related to
these
centers.

3.   Notwithstanding subdivision (a) of Section 2.00 of this
act,
funds appropriated by this item plus accumulated interest shall be
available for expenditure until June 30, 2001.

6440-011-0042--For transfer by the State Controller from the State
Highway Account, State Transportation Fund to the Earthquake Risk
Reduction Fund of 1996  . . . (1,000,000)

 6440-301-0001--For capital outlay, University of California
  . . .
50,000,000

Schedule:

Merced Campus:

(1) 99.12.005-Site development and  infrastructure
improvements--Preliminary plans, working drawings, and construction
. . . 50,000,000

Provisions:

1. Funds appropriated by this item shall be used for preliminary
plans,
working drawings, and construction of site development and
infrastructure including grading, drainage, roads, and utility
systems
(including central and distribution systems) as required to support
the
establishment of the new Merced Campus of the University of
California.

2. Notwithstanding Section 2.00 of this act, the funds appropriated
by
this item are available for expenditure until June 30, 2000.


6440-301-0574--For capital outlay, University of California, payable
from the 1998 Higher Education Capital Outlay Bond Fund  . . .

63,837,000 
 42,475,000 

Schedule:

Berkeley Campus:

(1) 99.01.180-Seismic Safety Corrections, Barker Hall--Working
drawings  . . . 758,000

Davis Campus:

(2) 99.03.170-Plant and Environmental  Sciences  

Science   Replacement Facility--Working drawings and
construction  . . . 21,028,000

Los Angeles Campus:

(5) 99.04.305-Health Sciences Seismic Replacement Building
1--Preliminary plans  . . . 922,000

Riverside Campus:

(6) 99.05.115-Entomology Buildings Seismic
Replacement--Preliminary plans  . . . 991,000

(7) 99.05.120-Humanities-Olmsted Hall Seismic Upgrade and
Renovation--Preliminary plans  . . . 469,000

San Diego Campus:

(8) 99.06.195-Basic Science Building Renovations--Working drawings
. . . 935,000

(9) 99.06.300-Primary Electrical System Improvements--Preliminary
Plans and working drawings  . . . 347,000

 San Francisco Campus:

(10) 99.02.115-UC Hall Seismic Replacement, Mission Bay--Working
drawings and construction  . . . 21,362,000 

Santa Barbara Campus:

(11) 99.08.090-Broida Hall Building Renewal--Working drawings  .
. . 712,000

Santa Cruz Campus:

(12) 99.07.095-Mt. Hamilton Infrastructure
Improvements--Construction  . . . 2,871,000

Agriculture and Natural Resources:

(14) 99.10.035-Alternative Pest Control Quarantine and Containment
Facilities for California--Construction  . . . 13,442,000

Provisions:

1. Identified savings in funds encumbered from this general
obligation
bond fund for construction contracts for capital outlay projects,
remaining after completion of a capital outlay project and upon
resolution of all change orders and claims, may be used: (a) to begin

working drawings for a project for which preliminary plan funds have
been appropriated and the plans have been approved by the State
Public Works Board consistent with the scope and cost approved by
the Legislature as adjusted for inflation only, (b) to proceed
further
with the underground tank corrections program, (c) to perform
engineering evaluations on buildings that have been identified as
potentially in need of seismic retrofitting, or (d) to proceed with
design
and construction of projects to meet requirements under the federal
Americans with Disabilities Act of 1990.

  No later than March 1, 1999, the University of California shall
provide the Legislative Analyst with a progress report showing the
identified savings by project, and the purpose for which the
identified
savings were used.

  No later than November 1, 1999, the University of California shall
prepare a report showing (a) the identified savings by project and
(b)
the purpose for which the identified savings were used. This report
shall be submitted to the Chair of the Joint Legislative Budget
Committee and to the chairs of the fiscal committees in each house.

6440-301-0658--For capital outlay, University of California, payable
from the Higher Education Capital Outlay Bond Fund of 1996  . . .
 4,628,000 
 8,840,000 

Schedule:

Berkeley Campus:

(.1) 99.01.115-Campus Sewer System Renewal--Working drawings
and construction  . . . 2,007,000

(.2) 99.01.140-Campus Water Distribution System Expansion, Step
2--Construction  . . . 1,466,000

(1) 99.01.190-Seismic Safety Corrections, LeConte Hall--Preliminary
plans  . . . 820,000

 Riverside Campus:

(1.1) 99.05.105-Boyce Hall Seismic Upgrade--Commission  . . .
2,376,000

San Diego Campus:

(1.2) 99.06.190-SIO Utilities System Improvements--Construction  .
. . 1,836,000 

Santa Cruz Campus:

(1.5) 99.07.100-Applied Sciences Building Alterations, Phase
1--Equipment  . . . 71,000

Irvine Campus:

(2) 99.09.175-Arts Renovation and Seismic Improvements, Phase
1--Preliminary plans  . . . 264,000

Provisions:

1. Identified savings in funds encumbered from this general
obligation
bond fund for construction contracts for capital outlay projects,
remaining after completion of a capital outlay project and upon
resolution of all change orders and claims, may be used: (a) to begin

working drawings for a project for which preliminary plan funds have
been appropriated and the plans have been approved by the State
Public Works Board consistent with the scope and cost approved by
the Legislature as adjusted for inflation only, (b) to proceed
further
with the underground tank corrections program, (c) to perform
engineering evaluations on buildings that have been identified as
potentially in need of seismic retrofitting, or (d) to proceed with
design
and construction of projects to meet requirements under the federal
Americans with Disabilities Act of 1990.

  No later than March 1, 1999, the University of California shall
provide the Legislative Analyst with a progress report showing the
identified savings by project, and the purpose for which the
identified
savings were used.

  No later than November 1, 1999, the University of California shall
prepare a report showing (a) the identified savings by project and
(b)
the purpose for which the identified savings were used. This report
shall be submitted to the Chair of the Joint Legislative Budget
Committee and to the chairs of the fiscal committees in each house.

6440-301-0705--For capital outlay, University of California, payable
from the 1992 Higher Education Capital Outlay Bond Fund  . . .
1,919,000

Schedule:

Santa Cruz Campus:

(1) 99.07.100-Applied Sciences Building Alterations, Phase  I

  1  --Equipment  . . . 1,161,000

Irvine Campus:

(1) 99.09.110-Humanities/Fine Arts Facilities--Equipment  . . .
210,000

(2) 99.09.230-UCIMC Academic Laboratory Seismic Replacement
Facility--Equipment  . . . 548,000

Provisions:

1. Identified savings in funds encumbered from this general
obligation
bond fund for construction contracts for capital outlay projects,
remaining after completion of a capital outlay project and upon
resolution of all change orders and claims, may be used: (a) to begin

working drawings for a project for which preliminary plan funds have
been appropriated and the plans have been approved by the State
Public Works Board consistent with the scope and cost approved by
the Legislature as adjusted for inflation only, (b) to proceed
further
with the underground tank corrections program, (c) to perform
engineering evaluations on buildings that have been identified as
potentially in need of seismic retrofitting, or (d) to proceed with
design
and construction of projects to meet requirements under the federal
Americans with Disabilities Act.

  No later than March 1, 1999, the University of California shall
provide the Legislative Analyst with a progress report showing the
identified savings by project, and the purpose for which the
identified
savings were used.

  No later than November 1, 1999, the University of California shall
prepare a report showing (a) the identified savings by project and
(b)
the purpose for which the identified savings were used. This report
shall be submitted to the  chair    Chairperson
  of
the Joint Legislative Budget Committee and to the chairs of the
fiscal
committees in each house.

6440-301-0782--For capital outlay, University of California, payable
from the Higher Education Capital Outlay Bond Fund of 1986.

Provisions:

1. Identified savings in funds encumbered from this general
obligation
bond fund for construction contracts for capital outlay projects,
remaining after completion of a capital outlay project and upon
resolution of all change orders and claims, may be used as follows:
(a)
to begin working drawings for a project for which preliminary plan
funds have been appropriated and the plans have been approved by the
State Public Works Board consistent with the scope and cost approved
by the Legislature as adjusted for inflation only, (b) to proceed
further
with the underground tank corrections program, (c) to perform
engineering evaluations on buildings that have been identified as
potentially in need of seismic retrofitting, or (d) to proceed with
design
and construction of projects to meet requirements under the federal
Americans with Disabilities Act of 1990.

  No later than March 1, 1999, the University of California shall
provide the Legislative Analyst with a progress report showing the
identified savings by project, and the purpose for which the
identified
savings were used.

  No later than November 1, 1999, the University of California shall
prepare a report showing (a) the identified savings by project and
(b)
the purpose for which the identified savings were used. This report
shall be submitted to the Chair of the Joint Legislative Budget
Committee and to the chairs of the fiscal committees in each house.

6440-301-0785--For capital outlay, University of California, payable
from the Higher Education Capital Outlay Bond Fund of 1988.

Provisions:

1. Identified savings in funds encumbered from this general
obligation
bond fund for construction contracts for capital outlay projects,
remaining after completion of a capital outlay project and upon
resolution of all change orders and claims, may be used: (a) to begin

working drawings for a project for which preliminary plan funds have
been appropriated and the plans have been approved by the State
Public Works Board consistent with the scope and cost approved by
the Legislature as adjusted for inflation only, (b) to proceed
further
with the underground tank corrections program, (c) to perform
engineering evaluations on buildings that have been identified as
potentially in need of seismic retrofitting, or (d) to proceed with
design
and construction of projects to meet requirements under the federal
Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101, et
seq.).

  No later than March 1, 1999, the University of California shall
provide the Legislative Analyst with a progress report showing the
identified savings by project, and the purpose for which the
identified
savings were used.

  No later than November 1, 1999, the University of California shall
prepare a report showing (a) the identified savings by project and
(b)
the purpose for which the identified savings were used. This report
shall be submitted to the Chair of the Joint Legislative Budget
Committee and to the chairs of the fiscal committees in each house.

6440-301-0791--For capital outlay, University of California, payable
from the 1990 Higher Education Capital Outlay Bond Fund  . . .
177,000

Schedule:

Irvine Campus:

(1) 99.09.110-Humanities/Fine Arts Facilities--Equipment  . . .
177,000

Provisions:

1. Identified savings in funds encumbered from this general
obligation
bond fund for construction contracts for capital outlay projects,
remaining after completion of a capital outlay project and upon
resolution of all change orders and claims, may be used: (a) to begin

working drawings for a project for which preliminary plan funds have
been appropriated and the plans have been approved by the State
Public Works Board consistent with the scope and cost approved by
the Legislature as adjusted for inflation only, (b) to proceed
further
with the underground tank corrections program, (c) to perform
engineering evaluations on buildings identified as potentially in
need
of seismic retrofitting, or (d) to proceed with design and
construction
of projects to meet requirements under the federal Americans with
Disabilities Act of 1990.

  No later than March 1, 1999, the University of California shall
provide the Legislative Analyst with a progress report showing the
identified savings by project, and the purpose for which the
identified
savings were used.

  No later than November 1, 1999, the University of California shall
prepare a report showing (a) the identified savings by project and
(b)
the purpose for which the identified savings were used. This report
shall be submitted to the Chair of the Joint Legislative Budget
Committee and to the chairs of the fiscal committees in each house.

6440-302-0574--For capital outlay, University of California, payable
from the Higher Education Capital Outlay Bond Fund of 1998  . . .
 80,482,000 
 97,632,000 

Schedule:

Berkeley Campus:

(3) 99.01.185-Seismic Safety Corrections, Wurster Hall--Working
Drawings and Construction  . . . 16,625,000

Irvine Campus:

(4) 99.09.185-Seismic Improvements, Med Surge I and II--Working
Drawings and Construction  . . . 2,528,000

Los Angeles Campus:

(5) 99.04.215-Campus High-Rise Fire Safety--Working Drawings and
Construction  . . . 4,377,000

Riverside Campus:

(6) 99.05.100-Rivera Library Seismic Upgrade and
Remodel--Construction  . . . 16,892,000

 (7) 99.05.105-Boyce Hall Seismic Upgrade--Construction  . .
.
2,376,000

San Diego Campus:

(8) 99.06.190-SIO Utilities System Improvements--Construction  . . .

1,836,000 

 San Francisco Campus:

(8.1) 99.02.115-UC Hall Seismic Replacement, Mission
Bay--Working drawings and construction  . . . 21,362,000 

Santa Barbara Campus:

(9) 99.08.060-Environmental Sciences Building--Working Drawings
and Construction  . . . 21,015,000

Santa Cruz Campus:

(10) 99.07.105-Interdisciplinary Sciences Building--Working
Drawings and Construction  . . . 14,833,000

Provisions:

1. Notwithstanding Section 13332.11 of the Government Code or any
other provision of law, the University of California may proceed with

any phase of any project identified in the above schedule, including
preparation of preliminary plans, working drawings, construction, or
equipment purchase, without the need for any further approvals.

2. The University of California shall complete each project
identified
in the above schedule within the total funding amount specified in
the
schedule for that project. Notwithstanding Section 13332.11 of the
Government Code or any other provision of law, the budget for any
project to be funded from the Higher Education Capital Outlay Bond
Fund of 1998 may be augmented by the University of California
within the total appropriation made by this item, in an amount not to

exceed 10 percent of the amount appropriated for that project. No
funds appropriated by this item for equipment may be used for an
augmentation under this provision, or be augmented from any other
funds appropriated by this item. This condition does not limit the
authority of the University of California to use nonstate funds.

3. The University of California shall complete each project
identified
in the above schedule without any change to its scope. The scope of a

project means, in this respect, the intended purpose of the project
as
determined by reference to the following elements of the budget
request for that project submitted by the University to the
Department
of Finance: (a) the program elements related to project type, and (b)

the functional description of spaces required to deliver the academic

and supporting programs as approved by the Legislature.

4. Notwithstanding Section 2.00 of this act or any other provision of

law, the appropriation made by this item is available for encumbrance

until December 31, 2000, except that the funds appropriated for
construction only must be bid by December 31, 1999 and will be
available for expenditure through December 31, 2000 and that the
funds appropriated for equipment purposes are available for
encumbrance until December 31, 2001. For the purposes of
encumbrance, funds appropriated for construction management and
project contingency purposes, as well as any bid savings, shall be
deemed to be encumbered at the time a contract is awarded; these
funds also may be used to initiate consulting contracts necessary for

management of the project during the liquidation period. Any savings
identified at the completion of the project also may be used during
the
liquidation period to fund the purposes described in Provision 2 and
Provision 5.

5. Identified savings in a budget for a capital outlay project, as
appropriated by this item, remaining after completion of a capital
outlay project and upon resolution of all change orders and claims,
may be used without further approval: (a) to augment projects
consistent with Provision 2, (b) to proceed further with the
underground tank corrections program, (c) to perform engineering
evaluations on buildings that have been identified as potentially in
need of seismic retrofitting, (d) to proceed with the design and
construction of projects to meet requirements under the federal
Americans with Disabilities Act of 1990, or (e) to fund minor capital

outlay projects.

6. No later than December 1 of each year, the University of
California
shall submit a report outlining the expenditure for each project of
the
funds appropriated by this item to the Chair of the Joint Legislative

Budget Committee, the chairs of the fiscal committees of each house,
the Legislative Analyst, and the Director of Finance. The report also

shall include the following elements: (a) a statement of the
identified
savings by project, and the purpose for which the identified savings
were used; (b) a certification that each project as proceeding or as
completed, has remained within its scope and the amount funded for
that project under this item; and (c) an evaluation of the outcome of

the project measured against performance criteria.

6440-303-0574--For capital outlay, University of California, payable
from the 1998 Higher Education Capital Outlay Bond Fund  . . .
103,169,000

Schedule:

Berkeley Campus:

(1) 99.01.180-Seismic Safety Corrections, Barker Hall--Construction
. . . 12,599,000

San Francisco Campus:

(2) 99.02.085-Chilled Water System  ,   Phase
1--Construction
. . . 11,785,000

Los Angeles:

(3) 99.04.305-Health Science Seismic Replacement Building
1--Working drawings and construction  . . . 22,141,000

Riverside Campus:

(4) 99.05.115-Entomology Buildings Seismic Replacement--Working
drawings and construction  . . . 22,481,000

San Diego Campus:

(5) 99.06.195-Basic  Sciences    Science 
Building
Renovations--Construction  . . . 14,949,000

(6) 99.06.300-Primary Electrical System Improvements--Construction
. . . 4,459,000

Santa Barbara Campus:

(7) 99.08.090-Broida Hall Building Renewal--Construction  . . .
10,257,000

Irvine Campus:

(8) 99.09.175-Arts Renovation and Seismic Improvements, Phase
1--Working drawings and construc-tion  . . . 4,498,000

Provisions:

 1. Identified savings in funds encumbered for construction
contracts from this general obligation bond fund after completion of
a capital outlay project, and upon resolution of all change orders
and
           claims, may be used prior to the appropriation reversion
date to
accomplish any or all of the following: (a) begin working drawings
for
a capital outlay project for which preliminary plans funds have been
appropriated and the plans have been approved by the State Public
Works Board consistent with the scope and cost approved by the
Legislature, as adjusted for inflation only, (b) proceed further with
the
underground tank corrections program, (c) perform engineering
evaluations on buildings identified as potentially in need of seismic

retrofitting, or (d) proceed with design and construction of projects
to
meet requirements under the federal Americans with Disabilities Act
of 1990.

  No later than March 1, 1999, the California State University shall
provide the Legislative Analyst with a progress report showing the
identified savings, by project, and the purpose for which the
identified
savings were used.

  No later than November 1, 1999, the California State University
shall
prepare a report showing the identified savings, by project, and the
purpose for which the identified savings were used. This report shall

be submitted to the Chairperson of the Joint Legislative Budget
Committee and to the chairpersons of the fiscal committees in each
house.

2.

  1. Notwithstanding Section 13332.11 of the Government

Code or any other provision of law, the University of California may
proceed with any phase  of any project identified in the above
schedule, including preparation of preliminary plans, working
drawings, construction, or equipment purchase, without the need for
any further approvals.

2. The University of California shall complete each project
identified
in the above schedule within the total funding amount specified in
the
schedule for that project. Notwithstanding Section 13332.11 of the
Government Code or any other provision of law, the budget for any
project to be funded from the Higher Education Capital Outlay Bond
Fund of 1998 may be augmented by the University of California
within the total appropriation made by this item, in an amount not to

exceed 10 percent of the amount appropriated for that project. No
funds appropriated by this item for equipment may be used for an
augmentation under this provision, or be augmented from any other
funds appropriated by this item. This condition does not limit the
authority of the University of California to use nonstate funds.

3. The University of California shall complete each project
identified
in the above schedule without any change to its scope. The scope of a

project means, in this respect, the intended purpose of the project
as
determined by reference to the following elements of the budget
request for that project submitted by the University of California to
the
Department of Finance: (a) the program elements related to project
type, and (b) the functional description of spaces required to
deliver
the academic and supporting programs as approved by the Legislature.


4. Notwithstanding Section 2.00 of this act or any other provision of

law, the appropriation made by this item is available for encumbrance

to December 31, 2000, inclusive, except that the funds appropriated
for construction only must be bid on or before December 31, 1999,
and will be available for expenditure to December 31, 2000,
inclusive,
and that the funds appropriated for equipment purposes are available
for encumbrance to December 31, 2001, inclusive. For the purposes
of encumbrance, funds appropriated for construction management and
project contingency purposes, as well as any bid savings, shall be
deemed to be encumbered at the time a contract is awarded; these
funds also may be used to initiate consulting contracts necessary for

management of the project during the liquidation period. Any savings
identified at the completion of the project also may be used during
the
liquidation period to fund the purposes described in Provision 2 and
Provision 5.

5. Identified savings in a budget for a capital outlay project, as
appropriated by this item, remaining after completion of a capital
outlay project and upon resolution of all change orders and claims,
may be used without further approval: (a) to augment projects
consistent with Provision 2, (b) to proceed further with the
underground tank corrections program, (c) to perform engineering
evaluations on buildings that have been identified as potentially in
need of seismic retrofitting, (d) to proceed with the design and
construction of projects to meet requirements under the federal
Americans with Disabilities Act of 1990, or (e) to fund minor capital

outlay projects.

6. No later than December 1 of each year, the University of
California
shall submit a report outlining the expenditure for each project of
the
funds appropriated by this item to the Chair of the Joint Legislative

Budget Committee, the chairs of the fiscal committees of each house,
the Legislative Analyst, and the Director of Finance. The report also

shall include the following elements: (a) a statement of the
identified
savings by project, and the purpose for which the identified savings
were used, (b) a certification that each project as proceeding or as
completed, has remained within its scope and the amount funded for
that project under this item, and (c) an evaluation of the outcome of

the project measured against performance criteria.

7.    Funding for the projects identified in this item shall be
provided only to the extent that the 1998 Higher Education Bond Act
is enacted and approved by the voters and provides funding in excess
of $900 million.

6440-490--Reappropriation, University of California. Notwithstanding
any other provision of law, the balances as of June 30, 1998, of the
appropriations provided in the following citations are reappropriated

for the purposes and subject to the limitations, unless otherwise
specified, provided for in the appropriations and shall be available
for
encumbrance and expenditure until June 30, 1999:

0001--General Fund

(1) Item 6440-001-0001, Budget Act of 1997.

Provisions:

1. Of the funds reappropriated by this item from Item 6440-001-0001,
Budget Act of 1997, up to $15,000,000 shall be available for deferred

maintenance, special repair projects, and the replacement of
instructional equipment. As of June 30, 1998, the balance of the
funds
from that item in excess of $15,000,000 shall revert to the General
Fund.

2. The University of California shall report to the Department of
Finance and the Joint Legislative Budget Committee the amount of the
balance, on June 30, 1998, of Item 6440-001-0001 of the Budget Act
of 1997, by September 30, 1998, and the expenditures made pursuant
to this item by September 30, 1999.

3. The University of California shall return to the Controller state
general funds appropriated in the Budget Act of 1997 in an amount
equal to the General Fund portion of federal contract and grant
overhead funds in excess of the 1997-98 year budgeted amount.

6440-491--Reappropriation, University of California. Notwithstanding
any other provision of law, the balance of the amount appropriated in

the following citation is hereby reappropriated for the purpose and
subject to the limitation, unless otherwise specified, provided for
in
that appropriation from the Higher Education Capital Outlay Fund of
1996:

(1) Item 6440-301-0658, Schedule (25), Budget Act of 1997 (Ch. 282,
Stats. 1997), Santa Barbara Campus, 99.08.075--Seawater System
Renewal--Construction

6600-001-0001--For support of Hastings College of the Law  . . .
13,244,000

Provisions:

1. The appropriation made by this item is exempt from Section 31.00
of this act.

2. Of the funds appropriated by this item, $774,000 is for support of

Program 40, Student Services, to provide financial aid to needy
students attending the Hastings College of the Law, according to the
nationally accepted needs analysis methodology.

6600-001-0814--For support of Hastings College of the Law, for
allocation by the State Controller in accordance with the provisions
of
Government Code Section 8880.5 as enacted by the voters in
Proposition 37 at the November 1984 General Election, payable from
the California State Lottery Education Fund  . . . 166,000

Provisions:

1. All funds received pursuant to Proposition 37 that are allocable
to
the Hastings College of the Law pursuant to Section 8880.5 of the
Government Code, and that are in excess of the amount appropriated
in this item are hereby appropriated in augmentation of this item.

6600-490--Reappropriation, Hastings College of the Law.
Notwithstanding any other provision of law, the balance, as of June
30,
1998, of the appropriation provided in the following citation is
reappropriated and shall be available for encumbrance and expenditure

until June 30, 1999:

001--General Fund

(1) Item 6600-001-001, Budget Act of 1997.

Provisions:

1. The Hastings College of the Law shall report to the Department of

Finance and the Joint Legislative Budget Committee the amount of the
balance, on June 30, 1998, of Item 6600-001-0001 of the Budget Act
of 1997, by September 30, 1998, and shall also report the
expenditures
made pursuant to this item by September 30, 1999.

6610-001-0001--For support of the California State University  . . .

 2,161,698,000 
 2,111,659,000 

Schedule:

(a) Support  . . .  2,860,857,000 
 2,856,018,000 

(b) Reimbursements  . . . -127,884,000

(c) Amount payable from the Higher Education Fees and Income, CSU
Fund (Item 6610-001-0498)  . . .  -571,275,000 
 -616,475,000 

Provisions:

1. The appropriations made by this item are exempt from Section
31.00 of this act, except as otherwise provided by the applicable
sections of the Government Code referred to in Section 31.00.

2. Of the amount appropriated by this item, $557,000 is available for

transfer to the California State University and Colleges Special
Projects Fund pursuant to Section 25008.5 of the Public Resources
Code, which allows state agencies to retain 50 percent of the
financial
benefits realized through energy savings projects.

3. Of the amount appropriated by this item, $7,324,224 is provided
for
payment of energy service contracts in connection with the issuance
of Public Works Board Energy Efficiency Revenue Bonds.

4. Of the amount appropriated by this item, $350,000 is for transfer
to
the Affordable Student Housing Revolving Fund for the purpose of
subsidizing interest costs in connection with bond financing for
construction of affordable student housing at the Fullerton and
Hayward campuses in accordance with Article 3 (commencing with
Section 90085) of Chapter 8 of Part 55 of the Education Code.

5. Of the amount appropriated by this item, $1,878,000 is for
repayment of the $17,000,000 financed for the California State
University through a third party for deferred maintenance projects in

the 1994-95 fiscal year. It is the intent of the Legislature to
annually
provide funds for that repayment purpose through the 2009-10 fiscal
year.

6. Of the amount appropriated by this item, $2,309,000 is for
repayment of the $24,000,000 financed for the California State
University through a third party for deferred maintenance projects in

the 1995-96 fiscal year. It is the intent of the Legislature to
annually
provide funds for that repayment purpose through the 2010-11 fiscal
year.

7. Of the amount appropriated by this item, $1,700,000 is for
conversion of the Stockton Developmental Center into the Regional
and Continuing Education Center at CSU, Stanislaus. It is the intent
of the Legislature to annually provide funds for this purpose through

the 2001-02 fiscal year.

8. Of the amount appropriated by this item, $2,000,000 is provided to

support the Bilingual Teacher Recruitment Program.

 9. Of the amount appropriated by this item, $500,000 is for
the
development of courses for the California Virtual University.

10.  

9.   Of the funds appropriated by this item, $5,000,000 is
provided on a one-time basis for the development of a stand-alone
distance learning teacher preparation program.

 11.

  10.   Of the funds appropriated by this item,
$2,000,000 is  provided on a one-time basis   for a new
teacher recruitment program to be operated by the California Center
for Teaching Careers.

 12.

  11.   Of the amount appropriated by Schedule (a)
of
this item, $9,300,000 shall be used to increase enrollment in teacher

preparation programs by 1,800 full-time equivalent students above
enrollment for the 1997-98 fiscal year.  The California State

University shall report to the Legislature by March 15, 1999, on the
number of additional full-time equivalent students enrolled in
teacher
preparation programs during the 1998-99 fiscal year.   
Of the
amount appropriated by Schedule (a) of this item, an additional
$5,000,000 shall be available to subsidize additional teacher
preparation enrollment, during summer sessions, on a pilot basis at
up
to five campuses. The California State University shall study the
feasibility of establishing ongoing state-subsidized teacher
preparation
programs in summer sessions and shall report its findings,
appropriate
options and estimated costs, and recommendations, to the Joint
Legislative Budget Committee and the budget committees of the
Senate and the Assembly on or before December 1, 1998. The
California State University may include a proposal for
state-subsidized
teacher preparation programs in summer sessions as part of its formal

budget request for the 1999-2000 fiscal year. 

 13.

  12.   Of the amount appropriated by Schedule (a)
of
this item,  $2,000,000    $1,000,000 
shall be used
for the purposes set forth in Assembly Bill 860 or similar
legislation
that is enacted in the 1997-98 Regular Session.

 14. It is the intent of the Legislature that, of the funds
appropriated in Schedule (a), $4,100,000 shall be used to expand
academic outreach efforts. It is the intent of the Legislature that
at least
$2,600,000 of these funds shall be used to expand the Pre-Collegiate
Academic Development Program and $1,500,000 shall be used to
expand the Educational Opportunity Program.

  13. Of the funds appropriated in Schedule (a),
$4,000,000
is provided for outreach to be used to fund new and existing programs

that are aimed at improving the chances for K-12 students from a wide

diversity of backgrounds to become eligible and prepared for the
California State University. Of this total, $1,000,000 is for the
Precollegiate Academic Development Program at the California State
University, $2,000,000 is for the California State University
Educational Opportunity Program (Art. 6 (commencing with Sec.
89521), Ch. 2, Pt. 55), and $1,000,000 is for the California Academic

Partnership Program (Ch. 11 (commencing with Sec. 11000), Pt. 7,
Ed. C.).

14. It is the intent of the Legislature that the California State
University incorporate service learning into its curricula and
encourage
and help pupils participate in service learning opportunities.

15. It is the intent of the Legislature that the University of
California
report to the Legislature any grade point adjustment factors
concerning
an applicant's undergraduate school that are used in the process for
admissions to their respective professional schools and graduate
programs. This disclosure shall specify the justification for the
grade
weighting policies and shall describe the specific methodologies used

to determine the relative weightings and adjustments made to the
grade point average earned by a student at each of the various
undergraduate schools. 

6610-001-0498--For support of the California State University, for
payment to Item 6610-001-0001, payable from the Higher Education
Fees and Income, CSU Fund  . . .  571,275,000 
 616,475,000 

Provisions:

1. All funds received in the Higher Education Fees and Income, CSU
Fund, that are in excess of the amount appropriated by this item are
hereby appropriated in augmentation of this item.

6610-001-0890--For support of the California State University,
payable from the Federal Trust Fund  . . . 15,000,000

Provisions:

1. All funds deposited in the Federal Trust Fund for the California
State University for the purposes of this item and that are in excess
of
the amount appropriated by this item are hereby appropriated in
augmentation of this item and are exempt from Section 28.00 of this
act, pursuant to subdivision (a) of Section 89753 of the Education
Code.

6610-002-0001--For support of the California State University for
transfer to and in augmentation of Item 6610-001-0001, for the
purpose of providing direct costs and administrative overhead
expenses for the Assembly, Senate, Executive and Judicial Fellows
programs and the Center for California Studies  . . . 
2,356,000

 2,291,000 

Schedule:

(a) Center for California Studies-- Fellows Program  . . . 320,000

(b) Center for California Studies-- Other  . . . 25,000

(c) Assembly Fellows  . . .  628,000 
 606,000 

(d) Senate Fellows  . . .  628,000 
 606,000 

(e) Executive Fellows  . . .  548,000 
 534,000 

(f) Judicial Fellows  . . .  207,000 
 200,000 

6610-003-0001--For support of the California State University for
payments on lease-purchase bonds  . . . 60,058,000

Schedule:

(a) Rental, insurance and administrative payments  . . . 62,817,000

(b) Reimbursements  . . . -2,759,000

6610-301-0001--For capital outlay, California State University  . . .

 26,051,000 
 11,678,000 

Schedule:

(1) 06.56.087-CSU, Fresno: Infrastructure Improvements--Preliminary
plans, working drawings, and construction  . . . 7,192,000

 (1.5) 06.48.315-Systemwide: minor capital outlay
program--preliminary plans, working drawing, construction and
equipment  . . . 14,173,000

(1.6) 06.48.375-Systemwide: seismic studies--preliminary plans  . . .

200,000 

(2) 06.98.099-CSU, Pomona: Chilled Water Central
Plant--Preliminary plans, working drawings, and construction  . . .
4,486,000

 6610-301-0574--For capital outlay, California State University,

payable from the Higher Education Capital Outlay Bond Fund of 1998
. . . 14,373,000

Schedule:

(1) 06.48.315-Systemwide: Minor Capital Outlay
Program--Preliminary plans, working drawings, and construction  . .
. 14,173,000

(2) 06.48.375-Systemwide: Seismic Studies--Preliminary plans  . . .
200,000

Provisions:

1. Identified savings in funds encumbered from this general
obligation
bond fund for construction contracts for capital outlay projects,
remaining after completion of a capital outlay project and upon
resolution of all change orders and claims, may be used prior to the
appropriation reversion date: (a) to begin working drawings for a
project for which preliminary plans funds have been appropriated and
the plans have been approved by the State Public Works Board
consistent with the scope and cost approved by the Legislature as
adjusted for inflation only, (b) to proceed further with the
underground
tank corrections program, (c) to perform engineering evaluations on
buildings identified as potentially in need of seismic retrofitting,
or (d)
to proceed with design and construction of projects to meet
requirements under the federal Americans with Disabilities Act of
1990.

  No later than March 1, 1999, the California State University shall
provide the Legislative Analyst with a progress report showing the
identified savings, by project, and the purpose for which the
identified
savings were used.

  No later than November 1, 1999, the California State University
shall
prepare a report showing the identified savings, by project, and the
purpose for which the identified savings were used. This report shall

be submitted to the Chairperson of the Joint Legislative Budget
Committee and to the chairpersons of the fiscal committees in each
house. 

6610-301-0658--For capital outlay, California State University,
payable from the 1996 Higher Education Capital Outlay Bond Fund
. . .  2,180,000 
 3,478,000 

Schedule:

 (.5) 06.52.103-CSU, Chico: Fire Life Safety--Construction  . .
.
1,298,000 

(1) 06.67.088-Humboldt State University: Wildlife/Fisheries
Renovation and Addition--Equipment  . . . 588,000

(2) 06.68.116-CSU, San Marcos: Initial Facility--Construction  . . .

570,000

(3) 06.78.072-CSU, San Bernardino: Corporation Yard/Administrative
Services Addition/Renovation--Equipment  . . . 322,000

(4) 06.82.058-CSU, Northridge: Business Administration, Economics
and Education Building--Construction  . . . 700,000

Provisions:

1. Identified savings in funds encumbered from this general
obligation
bond fund for construction contracts for capital outlay projects,
remaining after completion of a capital outlay project and upon
resolution of all change orders and claims, may be used prior to the
appropriation reversion date as follows: (a) to begin working
drawings
for a project for which preliminary plans funds have been
appropriated
and the plans have been approved by the State Public Works Board
consistent with the scope and cost approved by the Legislature as
adjusted for inflation only, (b) to proceed further with the
underground
tank corrections program, (c) to perform engineering evaluations on
buildings that have been identified as potentially in need of seismic

retrofitting, or (d) to proceed with design and construction of
projects
to meet requirements under the federal Americans with Disabilities
Act of 1990.

  No later than March 1, 1999, the California State University shall
provide the Legislative Analyst with a progress report showing the
identified savings, by project, and the purpose for which the
identified
savings were used.

  No later than November 1, 1999, the California State University
shall
prepare a report showing the identified savings, by project, and the
purpose for which the identified savings were used. This report shall

be submitted to the Chairperson of the Joint Legislative Budget
Committee and to the chairpersons of the fiscal committees in each
house.

6610-301-0660--For capital outlay, California State University
payable
from the Public Building Construction Fund  . . . 11,303,000

(1) 06.82.076-CSU, Northridge, Ventura, Off-Campus Center:
Renovation for Initial Facility, Phase 1a--Construction and equipment

. . . 11,303,000

6610-301-0705--For capital outlay, California State University,
payable from the Higher Education Capital Outlay Bond Fund of 1992
. . . 1,468,000

Schedule:

(1) 06.56.086-CSU, Fresno: Renovate McLane Hall--Equipment  . . .
606,000

(2) 06.67.088-Humboldt State University: Wildlife/Fisheries
Renovation and Addition--Equipment  . . . 365,000

(3) 70.68.004-California Maritime Academy: Laboratory
Addition/Library Addition--Equipment  . . . 497,000

Provisions:

1. Identified savings in funds encumbered from this general
obligation
bond fund for construction contracts for capital outlay projects,
remaining after completion of a capital outlay project and upon
resolution of all change orders and claims, may be used prior to the
appropriation reversion date: (a) to begin working drawings for a
project for which preliminary plans funds have been appropriated and
the plans have been approved by the State Public Works Board
consistent with the scope and cost approved by the Legislature as
adjusted for inflation only, (b) to proceed further with the
underground
tank corrections program, (c) to perform engineering evaluations on
buildings that have been identified as potentially in need of seismic

retrofitting, or (d) to proceed with design and construction of
projects
to meet requirements under the federal Americans with Disabilities
Act.

  No later than March 1, 1999, the California State University shall
provide the Legislative Analyst with a progress report showing the
identified savings, by project, and the purpose for which the
identified
savings were used.

  No later than November 1, 1999, the California State University
shall
prepare a report showing the identified savings, by project, and the
purpose for which the identified savings were used. This report shall

be submitted to the Chairperson of the Joint Legislative Budget
Committee and to the chairpersons of the fiscal committees in each
house.

6610-301-0782--For capital outlay, California State University,
payable from the Higher Education Capital Outlay Bond Fund of 1986.

Provisions:

1. Identified savings in funds encumbered from this general
obligation
bond fund for construction contracts for capital outlay projects,
remaining after completion of a capital outlay project and upon
resolution of all change orders and claims, may be used prior to the
                         appropriation reversion date: (a) to begin
working drawings for a
project for which preliminary plans funds have been appropriated and
the plans have been approved by the State Public Works Board
consistent with the scope and cost approved by the Legislature as
adjusted for inflation only, (b) to proceed further with the
underground
tank corrections program, (c) to perform engineering evaluations on
buildings that have been identified as potentially in need of seismic

retrofitting, or (d) to proceed with design and construction of
projects
to meet requirements under the federal Americans with Disabilities
Act.

  No later than March 1, 1999, the California State University shall
provide the Legislative Analyst with a progress report showing the
identified savings, by project, and the purpose for which the
identified
savings were used.

  No later than November 1, 1999, the California State University
shall
prepare a report showing the identified savings, by project, and the
purpose for which the identified savings were used. This report shall

be submitted to the Chairperson of the Joint Legislative Budget
Committee and to the chairpersons of the fiscal committees in each
house.

6610-301-0785--For capital outlay, California State University,
payable from the 1988 Higher Education Capital Outlay Bond Fund.

Provisions:

1. Identified savings in funds encumbered for construction contracts
from this general obligation bond fund after completion of a capital
outlay project, and upon resolution of all change orders and claims,
may be used prior to the appropriation reversion date: (a) to begin
working drawings for a capital outlay project for which preliminary
plans funds have been appropriated and the plans have been approved
by the State Public Works Board consistent with the scope and cost
approved by the Legislature as adjusted for inflation only, (b) to
proceed further with the underground tank corrections program, (c) to

perform engineering evaluations on buildings that have been
identified
as potentially in need of seismic retrofitting, or (d) to proceed
with
design and construction of projects to meet requirements under the
federal Americans with Disabilities Act.

  No later than March 1, 1999, the California State University shall
provide the Legislative Analyst with a progress report showing the
identified savings, by project, and the purpose for which the
identified
savings were used.

  No later than November 1, 1999, the California State University
shall
prepare a report showing the identified savings, by project, and the
purpose for which the identified savings were used. This report shall

be submitted to the Chairperson of the Joint Legislative Budget
Committee and to the chairpersons of the fiscal committees in each
house.

6610-301-0791--For capital outlay, California State University,
payable from the 1990 Higher Education Capital Outlay Bond Fund
. . . 196,000

Schedule:

(1) 70.68.004-California Maritime Academy: Laboratory Addition,
Library  Addition, and equipment  
Addition--Equipment
   . . . 196,000

Provisions:

1. Identified savings in funds encumbered from this general
obligation
bond fund for construction contracts for capital outlay projects,
remaining after completion of a capital outlay project and upon
resolution of all change orders and claims, may be used prior to the
appropriation reversion date: (a) to begin working drawings for a
project for which preliminary plans funds have been appropriated and
the plans have been approved by the State Public Works Board
consistent with the scope and cost approved by the Legislature as
adjusted for inflation only, (b) to proceed further with the
underground
tank corrections program, (c) to perform engineering evaluations on
buildings identified as potentially in need of seismic retrofitting,
or (d)
to proceed with design and construction of projects to meet
requirements under the federal Americans with Disabilities Act of
1990.

  No later than March 1, 1999, the California State University shall
provide the Legislative Analyst with a progress report showing the
identified savings, by project, and the purpose for which the
identified
savings were used.

  No later than November 1, 1999, the California State University
shall
prepare a report showing the identified savings, by project, and the
purpose for which the identified savings were used. This report shall

be submitted to the Chairperson of the Joint Legislative Budget
Committee and to the chairpersons of the fiscal committees in each
house.

 6610-302-0001--For capital outlay, California State University
. . . 4,000,000

Provisions:

1. Funds appropriated in this item shall be available for a
feasibility
study of, an environmental impact report on, and the design of the
Events Center on the Fresno Campus. 

6610-302-0574--For capital outlay, California State University,
payable from the 1998 Higher Education Capital Outlay Bond Fund
. . .  120,105,000 
 118,807,000 

Schedule:

(1) 06.51.003-California Maritime Academy: Seismic upgrade,
campuswide--Construction  . . . 3,743,000

 (3) 06.52.103-CSU, Chico: Fire Life Safety--Construction  .
. .
1,298,000 

(4) 06.54.059-CSU, Dominguez Hills: Technology Center, Health and
Administrative Services Building--Working drawings and construction
. . . 30,915,000

(5) 06.54.073-CSU, Dominguez Hills: Natural Sciences and
Mathematics Building HVAC Upgrade--Preliminary plans, working
drawings, and construction  . . . 3,919,000

(8) 06.62.083-CSU, Fullerton: Seismic Upgrade, Langsdorf
Hall--Construction  . . . 3,923,000

(10) 06.67.092-Humboldt State University: Infrastructure
Improvements--Construction  . . . 19,618,000

(11) 06.71.097-CSU, Long Beach: Renovate Fine Arts 1, 2, 3 and
4--Working drawings and construction  . . . 15,116,000

(12) 06.73.082-CSU, Los Angeles: Remodel Music
Building--Working drawings and construction  . . . 9,895,000

(13) 06.73.084-CSU, Los Angeles: Renovate Engineering and
Technology Building--Equipment  . . . 4,400,000

(15) 06.98.085-CSPU, Pomona: Science Building Addition and
Renovation--Equipment  . . . 1,703,000

(17) 06.76.088-CSU, Sacramento: Classroom Building II--Working
drawings and construction  . . . 13,910,000

(19) 06.80.146-San Diego State  University: Infrastructure
Improvements--Construction  . . . 6,530,000

(20) 06.86.105-San Jose State University: Business Building Capital
Renewal and Seismic--Preliminary plans, working drawings and
construction  . . . 5,135,000

Provisions:

1. Notwithstanding Section 13332.11 of the Government Code or any
other provision of law, the California State University may proceed
with any phase of any project identified in the above schedule,
including preparation of preliminary plans, working drawings,
construction, or equipment purchase, without the need for any further

approvals.

2. The California State University shall complete each project
identified in the above schedule within the total funding amount
specified in the schedule for that project. Notwithstanding Section
13332.11 of the Government Code or any other provision of law, the
budget for any project to be funded from the 1998 Higher Education
Capital Outlay Bond Fund may be augmented by the California State
University within the total appropriation made by this item, in an
amount not to exceed 10 percent of the amount appropriated for that
project. No funds appropriated by this item for equipment may be used

for an augmentation under this provision, or be augmented from any
other funds appropriated by this item. This condition does not limit
the
authority of the California State University to use nonstate funds
for
these purposes.

3. The California State University shall complete each project
identified in the above schedule without any change to its scope. The

scope of a project means, in this respect, the intended purpose of
the
project as determined by reference to the following elements of the
budget request for that project submitted by the university to the
Department of Finance: (a) the program elements related to project
type, and (b) the functional description of spaces required to
deliver
the academic and supporting programs as approved by the Legislature.


4. Notwithstanding Section 2.00 of this act or any other provision of

law, the appropriation made by this item is available for encumbrance

until December 31, 2000, except that the funds appropriated for
construction only must be bid by December 31, 1999, and funds
appropriated for equipment purposes are available for encumbrance
until December 31, 2001. For the purposes of encumbrance, funds
appropriated for construction management and project contingencies
purposes as well as any bid savings, shall be deemed to be
encumbered at the time a contract for that purpose is awarded; these
funds also may be used to initiate consulting contracts necessary for

management of the project during the liquidation period. Any savings
identified at the completion of the projects also may be used during
the
liquidation period to fund the purposes described in subdivisions
(a),
(b), (c), and (d) of Provision 5.

5. Identified savings in a budget for a capital outlay project, as
appropriated by this item, remaining after completion of a capital
outlay project and upon resolution of all change orders and claims,
may be used: (a) to proceed further with the underground tank
corrections program, (b) to perform engineering evaluations on
buildings that have been identified as potentially in need of seismic

retrofitting, (c) to proceed with the design and construction of
projects
to meet requirements under the federal Americans with Disabilities
Act of 1990, or (d) to fund minor capital outlay projects.

6. No later than December 1 of each year, the California State
University shall submit a report detailing the expenditure for each
project of the funds appropriated by this item to the Chair of the
Joint
Legislative Budget Committee, the chairs of the fiscal committees of
each house, the Legislative Analyst, and the Director of Finance. The

report also shall include the following elements: (a) a statement of
the
identified savings by project, and the purpose for which the
identified
savings were used; (b) a certification that each project as
proceeding
or as completed, has remained within its scope and the amount funded
for that project under this item; and (c) an evaluation of the
outcome
of the project measured against performance criteria.

6610-303-0574--For capital outlay, California State University,
payable from the 1998 Higher Education Capital Outlay Bond Fund
. . . 100,000,000

Schedule:

(.5) 06.48.315-Systemwide: Minor Capital Outlay
Program--Preliminary plans, working drawings, construction, and
equipment  . . . 1,078,000

(1) 06.50.058-CSU, Bakersfield: Business Public Administration
Building--Preliminary plans, working drawings, and construction  . .

. 8,338,000

(2) 06.52.097-CSU, Chico: Education/Classroom/Faculty Office
Addition--Working drawings and construction  . . . 12,124,000

(3) 06.78.081-CSU, San Bernardino: Social and Behavioral Sciences
Building--Working drawings and construction  . . . 29,365,000

(4) 06.68.063-CSU, San Marcos: Academic II-Buildings 26/27 and
37--Working drawings and construction  . . . 26,879,000

(5) 06.92.052-CSU, Stanislaus: Educational Services
Building--Working drawings and construction  . . . 22,216,000

Provisions:

 1. Identified savings in funds encumbered from this general

obligation bond fund for construction contracts for capital outlay
projects, remaining after completion of a capital outlay project and
upon resolution of all change orders and claims, may be used prior to

the appropriation reversion date: (a) to begin working drawings for a

project for which preliminary plans funds have been appropriated and
the plans approved by the State Public Works Board consistent with
the scope and cost approved by the Legislature as adjusted for
inflation
only, (b) to proceed further with the underground tank corrections
program, (c) to perform engineering evaluations on buildings
identified as potentially in need of seismic retrofitting, or (d) to
proceed with design and construction of projects to meet requirements

under the federal Americans with Disabilities Act of 1990.

  No later than March 1, 1999, the California State University shall
provide the Legislative Analyst with a progress report showing the
identified savings, by project, and the purpose for which the
identified
savings were used.

  No later than November 1, 1999, the California State University
shall
prepare a report showing the identified savings, by project, and the
purpose for which the identified savings were used. This report shall

be submitted to the Chairperson of the Joint Legislative Budget
Committee and to the chairpersons of the fiscal committees in each
house of the Legislature.

  1. Notwithstanding Section 13332.11 of the Government

Code or any other provision of law, the California State University
may proceed with any phase of any project identified in the above
schedule, including preparation of preliminary plans, working
drawings, construction, or equipment purchase, without the need for
any further approvals.

2. The California State University shall complete each project
identified in the above schedule within the total funding amount
specified in the schedule for that project. Notwithstanding Section
13332.11 of the Government Code or any other provision of law, the
budget for any project to be funded from the 1998 Higher Education
Capital Outlay Bond Fund may be augmented by the California State
University within the total appropriation made by this item, in an
amount not to exceed 10 percent of the amount appropriated for that
project. No funds appropriated by this item for equipment may be used

for an augmentation under this provision, or be augmented from any
other funds appropriated by this item. This condition does not limit
the
authority of the California State University to use nonstate funds
for
these purposes.

3. The California State University shall complete each project
identified in the above schedule without any change to its scope. The

scope of a project means, in this respect, the intended purpose of
the
project as determined by reference to the following elements of the
budget request for that project  submitted by the university to the
Department of Finance: (a) the program elements related to project
type, and (b) the functional description of spaces required to
deliver
the academic and supporting programs as approved by the Legislature.


4. Notwithstanding Section 2.00 of this act or any other provision of

law, the appropriation made by this item is available for encumbrance

until December 31, 2000, except that the funds appropriated for
construction only must be bid by December 31, 1999, and funds
appropriated for equipment purposes are available for encumbrance
until December 31, 2001. For the purposes of encumbrance, funds
appropriated for construction management and project contingencies
purposes as well as any bid savings, shall be deemed to be
encumbered at the time a contract for that purpose is awarded; these
funds also may be used to initiate consulting contracts necessary for

management of the project during the liquidation period. Any savings
identified at the completion of the projects also may be used during
the
liquidation period to fund the purposes described in subdivisions
(a),
(b), (c), and (d) of Provision 5.

5. Identified savings in a budget for a capital outlay project, as
appropriated by this item, remaining after completion of a capital
outlay project and upon resolution of all change orders and claims,
may be used: (a) to proceed further with the underground tank
corrections program, (b) to perform engineering evaluations on
buildings that have been identified as potentially in need of seismic

retrofitting, (c) to proceed with the design and construction of
projects
to meet requirements under the federal Americans with Disabilities
Act of 1990, or (d) to fund minor capital outlay projects.

6. No later than December 1 of each year, the California State
University shall submit a report detailing the expenditure for each
project of the funds appropriated by this item to the Chair of the
Joint
Legislative Budget Committee, the chairs of the fiscal committees of
each house, the Legislative Analyst, and the Director of Finance. The

report also shall include the following elements: (a) a statement of
the
identified savings by project,  and the purpose for which the
identified
savings were used, (b) a certification that each project as
proceeding
or as completed, has remained within its scope and the amount funded
for that project under this item, and (c) an evaluation of the
outcome
of the project measured against performance criteria.  

2.

  7.   Funding for the projects identified in this
item
shall be provided only to the extent that the 1998 Higher Education
Bond Act is enacted and approved by the voters and provides funding
in excess of $900 million.

6610-490--Reappropriation, California State University.
Notwithstanding any other provision of law, the balances of the
appropriations provided in the following citations are reappropriated

for the purposes and subject to the limitations, unless otherwise
specified, provided for in the appropriations and shall be available
for
expenditure until June 30, 2000:

0001--General Fund

(1) Item 6610-001-0001, Budget Act of 1997.

Provisions:

1. Of the funds reappropriated by this item from Item 6610-001-0001,
Budget Act of 1997, up to $15,000,000 shall be available for the
general support of the California State University. This $15,000,000
limitation applies only to reappropriations generated from systemwide

allocations. As of June 30, 1998, the balance generated from
systemwide allocations in excess of $15,000,000 shall revert to the
General Fund.

2. The California State University shall, by September 30, 1998,
report
to the Department of Finance and the Joint Legislative Budget
Committee the amount of the balance as of June 30, 1998, of Item
6610-001-0001 of the Budget Act of 1997, and a proposed expenditure
plan for that balance. The California State University shall report
by
September 30, 1999, and September 30, 2000, on the expenditures
made pursuant to this item.

0498--Higher Education Fees and Income, CSU Fund

(1) Item 6610-001-0498, Budget Act of 1997.

6870-001-0001--For support of Board of Governors of the California
Community Colleges  . . . 10,830,000

Schedule:

(a) 10-Apportionments  . . . 1,248,000

(b) 20-Special Services and Operations  . . . 16,722,000

(c) 30.01-Administration  . . . 4,668,000

(d) 30.02-Administration--Distri-buted  . . . -4,668,000

(e) Reimbursements  . . . -7,140,000

Provisions:

1. Funds appropriated by this item may be expended or encumbered
to make one or more payments under a personal services contract of
a visiting educator pursuant to Section 19050.8 of the Government
Code, a long-term special consultant services contract, or an
employment contract between an entity that is not a state agency and
a person who is under the direct or daily supervision of a state
agency,
only if all of the following conditions are met:

(a) The person providing service under the contract provides full
financial disclosure to the Fair Political Practices Commission in
accordance with the rules and regulations of the commission.

(b) The service provided under the contract does not result in the
displacement of any represented civil service employee.

(c) The rate of compensation for salary and health benefits for the
person providing service under the contract does not exceed by more
than 10 percent the current rate of compensation for salary and
health
benefits determined by the Department of Personnel Administration
for civil service personnel in a comparable position. The payment of
any other compensation or any reimbursement for travel or per diem
expenses shall be in accordance with the State Administrative Manual
and the rules and regulations of the Department of Personnel
Administration.

2. Of the funds appropriated by this item, $115,000 in Schedule (b)
is
for half-year costs for three positions in the Facilities Planning
Unit.
The expenditure of these funds is contingent upon passage of a Higher

Education Bond in November 1998. Upon passage of the Higher
Education Bond in  November 1998, funds shall not be available prior
to January 1, 1999.

6870-001-0705--For support of Board of Governors of the California
Community Colleges, Program 20.40.010-Facilities Planning, payable
from the Higher Education Capital Outlay Bond Fund of  1992  . . .
929,000

6870-001-0925--For support of Board of Governors of the California
Community Colleges, payable from the California Business Resources
and Assistance Innovation Network Fund  . . . 17,000

6870-101-0001--For local assistance, Board of Governors of the
California Community Colleges (Proposition 98)  . . . 
2,227,720,000 
 2,183,845,000 

Schedule:

(a) 10.10.010-Apportionments  . . .  1,502,461,000 
 1,482,152,000 

(b) 10.10.020-Basic Skills,  CalWORKs, Apprenticeship  . . . 

37,264,000 
 37,291,000 

(c) 10.10.030-Growth for Apportionment   . . .  106,944,000

 89,644,000 

(d) 10.10.040-Partnership for Excellence  . . . 100,000,000

(e) 20.10.005-Student Financial Aid Administration  . . . 7,232,000

(f) 20.10.010-Extended Opportunity Programs and Services and
Special Services  . . .  72,240,000 
 68,316,000 

(g) 20.10.020-Disabled Students   . . .  62,341,000 

 62,395,000 

(h) 20.10.040-Fund for Student Success  . . .  15,418,000

 11,418,000 

(i) 20.10.045-Special Services for CalWORKs Recipients  . . .
65,000,000

(j) 20.10.060-Foster Care Education Program  . . . 1,866,000

(k) 20.10.070-Matriculation  . . .  63,883,000 
 63,960,000 

(l)  20.20.020-Academic Senate for the Community Colleges  . . .
452,000

(m) 20.20.040-Faculty and Staff Diversity  . . . 1,859,000

(n) 20.20.050-Part-Time Faculty Health Insurance  . . . 500,000

(o) 20.20.055-Part-Time Faculty Office Hours  . . . 2,000,000

(p) 20.30.010-Faculty and Staff Development  . . . 5,233,000

(q) 20.30.011.005-Telecommunications and Technology Infrastructure
. . . 28,000,000

(r) 20.30.011.010-California Virtual University  . . . 2,900,000

(s) 20.30.020-Instructional Improvement, for tsf to 0909-Comm
Colleges Fd for Instructional Improvements  . . . 1,630,000

(t) 20.30.050-Economic Development  . . .  39,073,000

 33,073,000 

(u) 20.30.070-Transfer Education and Articulation  . . . 1,424,000

(v) 20.40.025-Scheduled Maintenance/Special Repairs  . . . 39,000,000


(w) 20.40.035 Instructional Equipment and Library
Materials-Replacement  . . .  48,000,000 
 54,000,000 

(x) 20.40.040 Hazardous Substances  . . . 8,000,000

(y) 20.20.080-Full-Time Faculty  . . . 15,000,000

 (z) 20.20.090-Copper Mountain Campus  . . . 1,500,000 

Provisions:

1. The funds appropriated in Schedules (a), (b), (c), (d), (e), (f),
(g),
(i), (j), (k), (m), (n), (o), (p), (q),  (r), (t),  and (w)
   (w),
and (y)   are for transfer by the Controller during the 
1997-98
   1998-99   fiscal year to Section B of the State
School
Fund.

2. Of the funds appropriated in Schedule (a), up to $100,000 is for a

maintenance allowance, pursuant to regulations adopted by the board
of governors.

3. Notwithstanding any other provision of law,  $22,175,000

  $22,202,000   of the funds appropriated in Schedule (b)
shall be for allocation to community college districts in the 1998-99

fiscal year for the purposes of funding FTES in courses in basic
skills,
including English-as-a-second-language courses and work force
preparation  courses for newly legalized immigrants, to the extent
the
total FTES claimed by a district for the 1998-99 fiscal year exceeds
the
level of total FTES funded for that district in the 1998-99 fiscal
year.
The Chancellor of the California Community Colleges shall develop
criteria for allocating these funds.

4. (a) Of the amount appropriated in Schedule (b), up to $7,089,000
shall be available as necessary upon certification by the Chancellor
of
the California Community Colleges for the purpose of funding
community college-related and supplemental instruction pursuant to
Section 3074 of the Labor Code as provided in Section 8152 of the
Education Code. No community college district shall use funds
available under this provision to offer any new apprenticeship
training
program or the expansion of any existing program unless the new
program or expansion has been approved by the chancellor.

(b) Notwithstanding Section 8152 of the Education Code, each
60-minute hour of teaching time devoted to each indentured apprentice

enrolled in and attending classes of related and supplemental
instruction as provided under Section 3074 of the Labor Code shall be

reimbursed at the rate of four dollars and twenty-two cents ($4.22)
per
hour. For purposes of this provision, each hour of teaching time may
include up to 10 minutes for passing time and breaks.

5. Notwithstanding any other provision of law, the funds appropriated

in Schedule (c) shall only be allocated for growth in FTES, on a

district-by-district basis, as determined by the Chancellor of the
California Community Colleges.

 6. Funds provided in Schedule (d) are for increasing the
allocation
for the community college system FTES for the purpose of achieving
annual performance goals and improving student learning and success.

Funding shall be allocated by the Chancellor to districts on a per
FTES
basis to invest in infrastructure and program enhancements that will
increase performance toward the community college's system outcome
measures. The Board of  Governors shall develop a community college
system plan to include:

(a) A recognition that this program is dependent on a mutual
commitment by the State of California and the California Community
College system to achieve statewide goals that reflect the highest
priority for the social and economic success of the state. The state
will
commit to fund the Partnership for Excellence as an investment after
the state has fully funded enrollment growth and COLA to ensure
student access, expand the college participation rate, and to protect

colleges against inflationary erosion through annual cost-of-living
adjustments. The California Community Colleges, as a result of the
state's investment, will commit to improving and achieving specific
outcome measures established by the Board of Governors through the
consultation process pursuant to Section 70901 of the Education Code.


(b) The Board of Governors shall develop, through the consultation
process, specific system outcome measures to improve student success
that shall include, but not be limited to, the areas of transfer,
degrees
and certificates, successful course completion, work force
development, and basic skills improvement. It is the intent that the
number of system goals not exceed 10 outcome measures. These
outcome measures shall be submitted to the Department of Finance,
the Office of the Legislative Analyst, and the California
Postsecondary
Education Commission (CPEC) for their review and comments. The
community college system's ability to achieve established outcome
measures shall be annually reviewed and reported.

(c) The Chancellor shall allocate funding to districts on a per FTES
basis subject to a district minimum allocation and districts shall
have
broad flexibility in expending the funds. Districts shall report data

under the existing Management Information System for each of the
outcome measures to the Chancellor's Office, which shall compile and
analyze this data for a report to the Legislature, the Governor,
CPEC,
and other interested parties by April 15 of each year.

(d) If, by the third year after full funding of enrollment growth,
COLA,
and the Partnership for Excellence, the system is making progress on
the system outcome measures toward the projected goals by the year
2005, the Chancellor shall make a base adjustment to districts'
general
apportionment for Partnership for Excellence allocations received to
date. If the state fulfills its investment commitment and the system
makes little or no progress, the Board of Governors shall take action

to assure system accountability, such as sharing and distributing
accountability among the districts, whose expenditure and
programmatic decisions ultimately determine the level of performance,

through a contingent funding allocation that creates direct
incentives
at the district level for achievement of the goals.

  6. Funds provided in Schedule (d) are for the
Partnership
for Excellence Program established pursuant to legislation enacted
during the 1997-98 Regular Session. 

7. Of the funds appropriated in Schedules (b) and (e), the funds not
required for the 1998-99 fiscal year to meet the demand for the
programs funded under those schedules shall be made available on a
one-time basis for general apportionment under Schedule (a), provided

that no transfer shall occur prior to May 15, 1999.

8. Of the funds appropriated in Schedule (f),  $59,854,000

  $56,921,000   is for Extended Opportunity Programs and
Services in accordance with Article 8 (commencing with Section
69640) of Chapter 2 of Part 42 of the Education Code; 
$12,386,000    $11,395,000   is for funding, at all

colleges, the Cooperative Agencies Resources for Education (CARE)
program in accordance with Article 4 (commencing with Section
79150) of Chapter 9 of Part 48 of the Educa-  tion Code.
$3,000,000 of the CARE funds is for former Temporary Assistance for
Needy Families (TANF) students returning to pursue educational
goals.    tion Code.   The board of governors shall

allocate funds on a priority basis and to local programs on the basis
of
need for student services.

9. (a) The funds appropriated in Schedule (g) are for local
assistance
for funding the excess direct instructional cost of providing special

support services or instruction, or both, to disabled students
enrolled
at community colleges, and for state hospital programs.

(b) Of the amount appropriated in Schedule (g) at least 
$651,579
   $652,090   shall be used for support of the
High Tech
Centers for activities including, but not limited to, training of
district
employees and students in the use of specialized computer equipment
for the disabled. All High Tech Centers shall meet standards
developed by the Chancellor's Office. Colleges that receive these
augmentations shall not supplant existing resources provided to the
centers.

(c) Notwithstanding any other provision of law, of the funds
appropriated in Schedule (g),  $1,465,216  
$1,466,363
  shall be for state hospital adult education programs at the
hospitals served by the Coast, Kern, and West Valley Community
College Districts since the 1986-87 fiscal year. The amount provided
includes the level of funding provided for these state hospital
programs
in the 1986-87 fiscal year, plus subsequent cost-of-living
adjustments
if provided. If adult education services at any of the three
hospitals are
not supported by the community colleges in the 1998-99 fiscal year,
the associated funds shall, upon order of the Department of Finance,
after 30 days' notice to the Chairperson of the Joint Legislative
Budget
Committee, be transferred to the State Department of Developmental
Services (DDS). For any transfer of funds to DDS during the 1998-99
fiscal year, the Proposition 98 base funding levels for community
colleges and DDS shall be adjusted accordingly.

10. The funds in Schedule (h), with the exception of the funds
identified in subdivisions (c) and (d) of this provision, shall be
used
for competitive grants to increase student success based on an
analysis
of student outcomes. The funds used for these grants shall be
available
for a limited duration, after which colleges shall institutionalize
the
programs within their budgets. The Chancellor shall develop criteria
for allocation of the competitive grants. Of the funds appropriated
in
Schedule  (u)    (h)  :

(a) $1,000,000 shall be available for small planning grants of up to
one
year duration.

(b) $8,985,000 shall be available for the initial year of two or
three
year projects where the  state share shall be no greater than 75% of
the
costs of the first year and no more than 25% in the last.

(c) Up to  $3,944,000    $944,000   is for
the Puente
Project if these funds are matched by $100,000 of private funds and
the participating community colleges and University of California
campuses maintain their 1995-96 support level for the Puente Project.

These funds are not required to be allocated on a temporary basis and

may be allocated on a permanent basis to support a Puente Project
that
meets the conditions of the Puente Project contract agreement.

(d) Up to  $1,489,000    $489,000   is for
the
Mathematics, Engineering and Science Achievement/Minority
Engineering (MESA/MEP) Programs. These funds are not required to
be allocated on a temporary basis and may be allocated on a permanent

basis provided the conditions for receipt of funds continue to be
met.

  As a condition of receipt of funds pursuant to Provision 15 (a) and

(b), colleges must submit to the Chancellor's Office a yearly report
including: an expenditure plan, a progress report detailing number of

students served, and the ability of the college to increase student
success based on an analysis of student outcomes. It is the intent
that
the Chancellor's Office submit a report to the Legislature and
Department of Finance by November 1, 1998. The report shall include
an analysis of the programs funded at each campus, including the
effects on student outcomes. The Chancellor shall also identify any
colleges which did not continue operation of the program after state
funds have ceased and the reasons therefore.

11. The funds appropriated in Schedule (i) are for the purpose of
assisting welfare recipient students and those in transition off of
welfare to achieve long-term self-sufficiency through coordinated
student services offered at community colleges including: work-study;

other educational related work experience; job placement services;
child care services; and coordination with county welfare offices to
determine eligibility and availability of services. All services
funded
in this schedule shall be for CalWORKs recipients who may utilize
these services until their educational objectives are met but for no
longer than three years. These funds shall be used to supplement and
not supplant existing funds and services provided for CalWORKs
recipients attending community colleges. The Chancellor shall develop

an equitable method for allocating funds to all districts and
colleges
based on the relative numbers of CalWORKs recipients in attendance
and shall allocate funds for the following purposes:

(a) Job placement and coordination.

(b) Curriculum development and redesign.

(c) Child care and work study.

(d) Instruction.

  Of the amount appropriated in Schedule (i), $49,500,000 shall be
allocated for the purpose identified in subdivision (c) above and, of

this amount, not less than $15,000,000 shall be for child care. Funds

utilized for subsidized child care shall be for children of CalWORKs
recipients through campus-based centers or parental choice vouchers
at rates and with rules consistent with those applied to related
programs operated by the State Department of Education, including
parental contribution schedules. Subsidized campus child care for
CalWORKs recipients shall be provided during the period they are
engaged in qualifying state and federal work activities for up to
three
months or until the end of the academic year, whichever period of
time
is greater, for those recipients who are in transition off welfare
and
enrolled in not less than six units of classes within their
educational
plan.

  Funds utilized for work study shall be used solely for payments to
employers that currently participate in campus-based work-study
programs or are providing work experiences that are directly related
to
and in furtherance of student educational programs, provided that
those payments may not exceed 75 percent of the wage for the
work-study positions; the employers shall pay at least 25 percent of
the
wage for the work-study position. These funds may be expended only
if the total hours of education, employment, and work-study for the
student are sufficient to meet both state and federal minimum
requirements for qualifying work-related activities.

  Of the funds available for work study, the Chancellor may allocate
up
to $18,000,000 in the first semester. The balance shall be allocated
to
provide either instructional services, work study or child care for
CalWORKs students. Funds can be used to provide credit or noncredit
classes for CalWORKs students if a district has committed all of its
funded FTES and is unable to offer the additional instructional
services to meet the demand for CalWORKs students. This
determination shall be based on fall enrollment information.
Districts
shall make application to the Chancellor's Office by October 15. The
Chancellor's Office shall submit a report to the Joint Legislative
Budget Committee by November 15, 1998, that (a) identifies the
enrollment of new CalWORKs students, (b) states whether and why
additional classes were needed to accommodate the needs of
CalWORKs students, and (c) sets forth an expenditure plan for the
balance of funds.

  As a condition of receipt of the funds appropriated in Schedule
(i), by
the fourth week following the end of the semester or quarter term
commencing in January 1999, each participating community college
shall submit to the Chancellor's Office a report, in the format
specified
by the Chancellor, in consultation with the Department of Social
Services, that includes but may not be limited to the funded
components, the number of hours of child care provided, average
monthly enrollment of CalWORKs dependents served in childcare, the
number of work/study hours provided, the hourly salaries and type of
jobs, the number of students being case managed, the short-term
programs available, student participation rates, and other outcome
data. It is intended that, to the extent practical, reporting from
colleges
utilize data gathered for federal reporting requirements at the state
and
local level. Further, it is intended that the Chancellor's Office
compile
the information for annual reports to the Legislature, the Governor's

Office, the Legislative Analyst, and the Departments of Finance and
Social Services by October 30 of each year as specified in the annual

Budget Act.

12. Of the funds appropriated in Schedule (b) $8,000,000 is to fund
additional fixed, variable, and one-time costs for providing support
services and instruction for CalWORKs students which include but are
not limited to: job placement and coordination; curriculum
development and redesign; child care and work study; and instruction.

As a condition for funding, colleges are required to submit a plan to

the Chancellor's Office on how the funds will be utilized which shall

be based on collaboration with county welfare offices about the
services and instruction that is needed for CalWORKs recipients. The
funds matched by federal TANF block grant funds and scheduled in
Item 6870-111-0001(a) are also subject to all these same conditions.


13. The funds in Schedule (j) shall be allocated to provide foster
parent
training. Funds shall be allocated in such a manner as to ensure
priority for training required by Chapter 1016, Statutes of 1996.
Districts shall make services available to foster parents to satisfy
the
requirements of Chapter 1016, Statutes of 1996 as a first priority.
Remaining funds may be used for services to foster child relative
caretakers and for additional parenting skills, thereafter.

14. (a) The funds appropriated in Schedule (k) are for the purpose of

student matriculation, as specified in Article 1 (commencing with
Section 78210) of Chapter 2 of Part 48 of the Education Code.

(b) Of the amount appropriated in Schedule (k), $10,000,000 shall be
allocated to community college districts on a one-to-one matching
fund
basis to provide matri