BILL NUMBER: AB 1105 CHAPTERED 07/06/99 CHAPTER 67 FILED WITH SECRETARY OF STATE JULY 6, 1999 APPROVED BY GOVERNOR JULY 6, 1999 PASSED THE ASSEMBLY JUNE 16, 1999 PASSED THE SENATE JUNE 15, 1999 AMENDED IN SENATE JUNE 15, 1999 INTRODUCED BY Assembly Members Jackson and Reyes and Senators Dunn and Solis (Coauthor: Senator Polanco) FEBRUARY 25, 1999 An act to amend Sections 138 and 4938 of, and to add Section 139 to, the Business and Professions Code, to add and repeal Title 11.5 (commencing with Section 1730) of Part 3 of the Code of Civil Procedure, to add Section 4101.2 to the Food and Agricultural Code, to amend Sections 8690.6 and 15301 of, to amend, repeal, and add Section 68616 of, and to add Sections 11754.1 and 68617 to, the Government Code, to amend Sections 44011, 44017.1, 44060, 44062.1, 44094, 50880, 50881, 50881.5, 50882, 50887, 50888.3, 50888.5, 50888.7, 50889.5, 50890, 50893.5, 50893.7, 50893.9, 51451, 51452, and 51455 of, to add Sections 44000.1 and 44091.2 to, to repeal Sections 50884 and 51453 of, and to repeal and add Section 50895 of, the Health and Safety Code, to add Section 311.1 to the Public Utilities Code, to repeal Section 19556 of the Revenue and Taxation Code, and to amend Section 3 of Chapter 328 of the Statutes of 1998, relating to state government, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 1105, Jackson. State government. (1) Existing law establishes the Department of Consumer Affairs to regulate and license the various professional and vocational occupations in the state. Existing law requires every board under the jurisdiction of the department to submit to the Director of Consumer Affairs, by December 31, 1999, its method for ensuring that every licensing examination administered by or pursuant to contract with the board is subject to periodic evaluation. This bill instead would require that the submission be made by December 1, 1999, and by December 1 of each subsequent year. This bill would also require the department to compile information regarding these evaluations and submit it to the Legislature by September 30 of each year. It would make related changes in this regard. This bill would also require the department to develop, in consultation with the boards, programs, bureaus, and divisions under its jurisdiction, and the Osteopathic Medical Board of California and the State Board of Chiropractic Examiners, a policy regarding examination development and validation, and occupational analysis. It would require the department to finalize and distribute this policy by September 30, 1999, to each of the boards, programs, bureaus, and divisions under its jurisdiction and the Osteopathic Medical Board of California and the State Board of Chiropractic Examiners, and to submit this policy in draft form to the Legislature for review at least 30 days prior to that date. (2) The Performance and Results Act of 1993, among other things, requires the Department of Finance to develop a performance-based budgeting pilot project. Existing law also authorizes the Department of Consumer Affairs to accept gifts and donations without approval by the Director of Finance. Those provisions are to remain in effect only until the effective date of the Budget Act of 1999, or June 30, 1999, whichever occurs later. This bill would specify that this is also the intent of the State Government Strategic Planning and Performance Review Act, would delete the authorization for the Department of Consumer Affairs to accept gifts and donations without approval of the Director of Finance, and would extend the effective date of these provisions until the effective date of the Budget Act of 2000, or June 30, 2000, whichever occurs later. The bill would also require the department to end its participation in the performance-based budgeting pilot project and to transition its budgeting and accounting systems during the 1999-2000 fiscal year to conform with systems prescribed by the Department of Finance, as specified. (3) Existing law sets forth the licensing requirements for acupuncturists, including passage of a practical examination of the required skills. This bill would revise that provision to require that in order to be issued a license to practice acupuncture an applicant must pass a written examination, as specified. (4) Under existing law, the parties to certain civil actions in specified courts are required to submit to judicial arbitration, as specified, prior to trial. This bill would impose a state-mandated local program by requiring 4 superior courts selected by the Judicial Council to participate, as a pilot program, in early mediation of civil cases, as specified. The bill would require the Judicial Council to report to the Legislature and to the Governor regarding the pilot program, as specified, on or before January 1, 2003. The pilot program would be repealed on January 1, 2004. (5) Existing law grants to the California Science Center specified authority, including the authority to construct, operate, and lease a stadium, arena, pavilion, or other building that is to be used for the holding of athletic contests, exhibitions, and other public meetings. This bill would authorize the California Science Center, with the approval of the Director of General Services, to enter into a long-term lease agreement with the Los Angeles Unified School District to convert the state armory and surrounding land in or near Exposition Park to a demonstration mathematics and science-based school, as prescribed. (6) Existing law, operative until July 1, 1999, establishes in the Reserve for Economic Uncertainties a Disaster Response-Emergency Operations Account, which is continuously appropriated, to be used for response activities and recovery activities, as defined. Existing law limits authorizations under these provisions for acquisitions, relocations, and environmental mitigations for needs that are a direct consequence of the January 1997 floods or any flood-related emergency that is declared by the Governor on or before January 1, 1999. This bill would (a) extend the operative date of these provisions to July 1, 2002, thus resulting in an appropriation by continuing a continuously appropriated fund, (b) delete references to response activities and recovery activities and instead refer to activities that occur within 365 days after a declaration of emergency by the Governor and activities that occur after the 365th day after a declaration of emergency by the Governor, and (c) delete the flood-related limitation applicable to the use of these funds for acquisitions, relocations, and environmental mitigations. (7) Existing law provides that state armories in specified cities and counties shall be made available to these counties or any city in these counties for the purpose of providing temporary shelter for homeless persons during specified periods of each year, as a temporary measure until March 15, 1999, to allow adequate time for government entities in these counties to develop other suitable homeless shelter arrangements. This bill would delete the March 15, 1999 time restriction, thus extending the program established under these provisions indefinitely. (8) Existing law establishes in the State Treasury, the Stephen P. Teale Data Center Revolving Fund (TDC Fund), a continuously appropriated fund, for the payment of expenses incurred by the Stephen P. Teale Data Center. Existing law specifies the funds that comprise the TDC Fund, including all moneys received into the State Treasury from any source whatever in payment of electronic data processing services or other services rendered by the data center. This bill would authorize the Stephen P. Teale Data Center to establish rates and collect payments from state agencies for providing services to those agencies. The bill would require all money received by the data center pursuant to this provision be deposited in the Stephen P. Teale Data Center Revolving Fund and would provide that the methodology for computing costs and billing rates is subject to the approval of the Director of Finance. The bill would authorize the data center to require monthly payments in advance by client agencies, based on estimated billings, but would authorize a state agency to make payments pursuant to an alternative schedule agreed to by the applicable state agency and the data center. (9) Existing law sets forth various deadlines for procedures in civil actions subject to trial court delay reduction rules, as specified. This bill would make an exception to those deadlines for complex cases, to remain in effect only until January 1, 2004. (10) Existing law sets forth the duties of the Judicial Council, as specified. This bill would require the Judicial Council, on or before October 30, 2002, to submit a report to the Legislature and the Governor regarding the effectiveness of the Centers for Complex Litigation established pursuant to the Budget Act of 1999, as specified. (11) Existing law establishes a motor vehicle (smog check) inspection and maintenance program, administered by the Department of Consumer Affairs, which requires inspection of motor vehicles biennially upon registration, and at other times as specified. Existing law exempts from the biennial inspection, any motor vehicle 4 or less model-years old. This bill would authorize the department to expand that exemption to include any motor vehicle that is up to 6 or less model-years old. (12) Under existing law, motor vehicles of 4 or less model-years old that are exempt from the biennial smog check inspection are subject to an annual smog abatement fee of $4. This bill would provide that if the Department of Consumer Affairs exempts from the biennial inspection, motor vehicles that are 5 or 6 model-years old, the department may also subject those exempted vehicles to the $4 annual smog abatement fee. The bill would authorize the department to also subject specified other vehicles exempted from the biennial smog check requirement, to the $4 annual smog abatement fee. (13) Existing law requires the Department of Consumer Affairs to offer a low-income repair assistance program to eligible individuals based on a maximum level of 175% of the federal poverty level, as provided. Existing law provides for the program to offer repair cost assistance to those eligible individuals upon payment of a specified copayment. This bill would raise the low-income threshold level to 185% of the federal poverty level. The bill would also expand the repair assistance program to offer assistance to an owner of a motor vehicle that is directed to a test-only facility and fails the smog check inspection. The bill would require the department to impose a copayment on those individuals that is at least equivalent to the copayment imposed on low-income individuals under the program. The bill would authorize the department to increase its contribution toward the repair of a motor vehicle under the program, if the department determines that the expenditure is cost-effective. (14) Existing law establishes the High Polluter Repair or Removal Account in the Vehicle Inspection and Repair Fund and provides that money in the account shall be available for, among other purposes, voluntary accelerated retirement of high-polluters. This bill would authorize the Department of Consumer Affairs to specify the amount of money that shall be paid to an owner of a high-polluting motor vehicle who voluntarily retires the vehicle. (15) The bill would declare the intent of the Legislature that, if the $300 smog impact fee imposed on motor vehicles previously registered in another state is ruled unconstitutional or unenforceable by an appellate court or the California Supreme Court, the repair assistance program described in (13) above and any voluntary vehicle retirement program implemented by the Department of Consumer Affairs not be supported through the General Fund. (16) Under existing law, the Department of Housing and Community Development administers the Family Housing Demonstration Program, under which it may make loans from the continuously appropriated Family Housing Demonstration Account to sponsors for purposes of assisting the development of community housing and congregate housing developments. Existing law contains findings and declarations of the Legislature relating to the need for this program. Under this existing program, "congregate housing" is defined as a new or rehabilitated large multibedroom structure in which 2 to 10 households share specified household responsibilities. This bill would change the name of the program to the Families Moving to Work Program and would substitute revised findings and declarations of the Legislature relating to the program and revise the definition of congregate housing to delete the restriction with respect to the maximum number of households that may share common facilities and responsibilities. (17) Under the existing Family Housing Demonstration Program, the Department of Housing and Community Development is required to implement the program after adopting specified rules and regulations. This bill would repeal this requirement. (18) Under the existing Family Housing Demonstration Program, the housing component of a community housing development is required to include specified features and criteria, among which is that between 20% and 30% of the assisted units in the development must be occupied by elderly persons or households with the balance required to be available to families with children. The jobs and economic development component of a community housing development is required to include specified features and criteria, among which is that the sponsor is required to propose and implement a job placement and training program for residents to be implemented within 18 months of initial occupancy. This bill would delete the percentage of assisted units that must be available to elderly persons in a community housing development. The bill also would require the sponsor of the community housing development to develop a job placement and training program for residents to be implemented upon initial occupancy. The bill would make other revisions to the jobs and economic development component. (19) Under existing law, the Department of Housing and Community Development is required to base an award of funds from the Family Housing Demonstration Account on a ranking of applications occurring at least once every 3 months until there are insufficient funds available to commit according to that ranking and prescribes characteristics of projects that are required to be given priority. This bill would delete the requirement that the ranking occur once every 3 months and would add to those projects to be given priority, projects that are reasonable in cost. (20) Under existing law, the Department of Housing and Community Development is required to monitor the construction and operation of the community housing developments developed pursuant to the Family Housing Demonstration Program in order to ensure compliance with loan conditions, contract obligations, and the program and any regulations adopted pursuant to it. This bill would authorize the department to enter into a contract with a local public agency to monitor the operation of community housing developments and congregate housing developments. (21) Under the existing Family Housing Demonstration Program, regulatory agreements with respect to community housing developments are required to contain specified binding provisions. This bill would clarify that certain of these provisions are applicable to congregate housing developments as well, and would add a requirement that the agreement contain provisions that would encourage an eligible household to occupy a unit that is constructed with funds under the program for no more than 5 years. (22) Under existing law, the Department of Housing and Community Development was authorized until June 30, 1992, to adopt, amend, or repeal emergency regulations to implement the Family Housing Demonstration Program with respect to loans made with housing bond revenues. This bill would repeal these provisions and instead exempt any rule, policy, or standard of general application developed by the department in implementing the program from specified provisions of the Administrative Procedure Act. (23) Under existing law, the Department of Housing and Community Development is required to make awards from the Family Housing Demonstration Account in the Rental Housing Construction Fund for purposes of assisting the development of community housing developments. This bill would delete that requirement and instead authorize the department to make those awards from that account, which the bill would rename the Families Moving to Work Account. The bill would delete a specified formula for the apportionment of money available for loans in the account between congregate housing and community housing developments. (24) Existing law, until January 1, 2002, establishes a Homebuyer Down Payment Assistance Program and a Rental Assistance Program to provide assistance in the amount of the applicable school facility fee on affordable housing developments. Existing law appropriates $160,000,000 to the School Facilities Fee Assistance Fund which is continuously appropriated to the Department of General Services for the purposes of these programs, allocates 25% of that amount for those programs in each of 4 fiscal years commencing with 1998-99, and requires the department to contract with the California Housing Finance Agency for the administration of these programs and for allocation of these funds. This bill instead would allocate a specified portion of $160,000,000 for those purposes in each fiscal year from 1998-99 to 2002-03, and would repeal the authority for those programs on January 1, 2003. The bill would require repayments, interest, and other moneys accruing to the fund to be returned to the fund and to be available for allocation by the California Housing Finance Agency to those housing assistance programs. The bill would also revise the criteria for granting assistance pursuant to those programs, as specified. (25) Existing law prescribes the powers and duties of the Public Utilities Commission. This bill would prohibit the commission from considering or requiring, in determining qualified bidders, or in awarding contracts, that any facilities be located within a particular area of the state, or within geographical proximity of any particular area of the state. (26) Existing law providing for the administration of franchise and income tax laws requires each city that maintains, or has access to, a computerized system, as described, to annually furnish to the Franchise Tax Board specified information for businesses subject to tax in the preceding fiscal year. This bill would repeal that requirement. (27) The existing Performance and Results Act of 1993 requires the Department of Finance to develop a performance budgeting pilot project, in accordance with specified principles, involving 4 state departments, including the Department of General Services and the Department of Consumer Affairs. Existing law sets forth the conditions pursuant to which the Department of General Services, notwithstanding existing statutes and regulations, is required or authorized, among other things, to carry out specified functions relating to state personnel matters, to prepay vendors when it is cost-beneficial to the department, to accept gifts and donations of real property without approval by the Director of Finance, and to procure goods from the private sector even though the goods may be available through the Prison Industry Authority. These provisions of existing law remain in effect until the effective date of the Budget Act of 1999 or June 30, 1999, whichever occurs later. This bill would reenact the provisions relating to the Department of General Services. This bill would specify that these provisions shall remain in effect only until the effective date of the Budget Act of 2000 or July 1, 2000, whichever occurs later. (28) Existing law establishes the State Energy Resources Conservation and Development Commission in the Resources Agency, and specifies the powers and duties of the commission. This bill would require the commission to conduct a public process to prepare a transition plan report and an operational plan report concerning the transfer of energy efficiency programs from the Public Utilities Commission to the State Energy Resources Conservation and Development Commission, and to submit these reports to the Legislature by January 1, 2000. (29) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. (30) The bill would declare that it is to take effect immediately as an urgency statute. However, certain provisions of the bill, referred to in (16) to (23) above, would become operative only if an appropriation is made for purposes of these provisions in the Budget Act of 1999 or in another statute enacted during the 1st calendar year of the 1999-2000 Regular Session and the bill would provide that these provisions shall be funded exclusively with funds appropriated thereby. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 138 of the Business and Professions Code is amended to read: 138. Every board in the department, as defined in Section 22, shall initiate the process of adopting regulations on or before June 30, 1999, to require its licentiates, as defined in Section 23.8, to provide notice to their clients or customers that the practitioner is licensed by this state. A board shall be exempt from the requirement to adopt regulations pursuant to this section if the board has in place, in statute or regulation, a requirement that provides for consumer notice of a practitioner's status as a licensee of this state. SEC. 2. Section 139 is added to the Business and Professions Code, to read: 139. (a) The Legislature finds and declares that occupational analyses and examination validation studies are fundamental components of licensure programs. It is the intent of the Legislature that the policy developed by the department pursuant to subdivision (b) be used by the fiscal, policy, and sunset review committees of the Legislature in their annual reviews of these boards, programs, and bureaus. (b) Notwithstanding any other provision of law, the department shall develop, in consultation with the boards, programs, bureaus, and divisions under its jurisdiction, and the Osteopathic Medical Board of California and the State Board of Chiropractic Examiners, a policy regarding examination development and validation, and occupational analysis. The department shall finalize and distribute this policy by September 30, 1999, to each of the boards, programs, bureaus, and divisions under its jurisdiction and to the Osteopathic Medical Board of California and the State Board of Chiropractic Examiners. This policy shall be submitted in draft form at least 30 days prior to that date to the appropriate fiscal, policy, and sunset review committees of the Legislature for review. This policy shall address, but shall not be limited to, the following issues: (1) An appropriate schedule for examination validation and occupational analyses, and circumstances under which more frequent reviews are appropriate. (2) Minimum requirements for psychometrically sound examination validation, examination development, and occupational analyses, including standards for sufficient number of test items. (3) Standards for review of state and national examinations. (4) Setting of passing standards. (5) Appropriate funding sources for examination validations and occupational analyses. (6) Conditions under which boards, programs, and bureaus should use internal and external entities to conduct these reviews. (7) Standards for determining appropriate costs of reviews of different types of examinations, measured in terms of hours required. (8) Conditions under which it is appropriate to fund permanent and limited term positions within a board, program, or bureau to manage these reviews. (c) Every regulatory board and bureau, as defined in Section 22, and every program and bureau administered by the department, the Osteopathic Medical Board of California, and the State Board of Chiropractic Examiners, shall submit to the director on or before December 1, 1999, and on or before December 1 of each subsequent year, its method for ensuring that every licensing examination administered by or pursuant to contract with the board is subject to periodic evaluation. The evaluation shall include (1) a description of the occupational analysis serving as the basis for the examination; (2) sufficient item analysis data to permit a psychometric evaluation of the items; (3) an assessment of the appropriateness of prerequisites for admittance to the examination; and (4) an estimate of the costs and personnel required to perform these functions. The evaluation shall be revised and a new evaluation submitted to the director whenever, in the judgment of the board, program, or bureau, there is a substantial change in the examination or the prerequisites for admittance to the examination. (d) The evaluation may be conducted by the board, program, or bureau, the Office of Examination Resources of the department, the Osteopathic Medical Board of California, or the State Board of Chiropractic Examiners or pursuant to a contract with a qualified private testing firm. A board, program, or bureau that provides for development or administration of a licensing examination pursuant to contract with a public or private entity may rely on an occupational analysis or item analysis conducted by that entity. The department shall compile this information, along with a schedule specifying when examination validations and occupational analyses shall be performed, and submit it to the appropriate fiscal, policy, and sunset review committees of the Legislature by September 30 of each year. It is the intent of the Legislature that the method specified in this report be consistent with the policy developed by the department pursuant to subdivision (b). SEC. 3. Section 4938 of the Business and Professions Code is amended to read: 4938. The committee shall issue a license to practice acupuncture to any person who makes an application and meets the following requirements: (a) Is at least 18 years of age. (b) Furnishes satisfactory evidence of completion of one of the following: (1) An educational and training program approved by the committee pursuant to Section 4939. (2) Satisfactory completion of a tutorial program in the practice of an acupuncturist which is approved by the committee. (3) In the case of an applicant who has completed education and training outside the United States and Canada, documented educational training and clinical experience which meets the standards established pursuant to Sections 4939 and 4941. (c) Passes a written examination administered by the committee which tests the applicant's ability, competency, and knowledge in the practice of an acupuncturist. The written examination shall be developed by the Office of Examination Resources of the Department of Consumer Affairs. (d) Is not subject to denial pursuant to Division 1.5 (commencing with Section 475). (e) Completes a clinical internship training program approved by the committee. The clinical internship training program shall not exceed nine months in duration and shall be located in a clinic in this state, which is approved by the committee pursuant to Section 4939. The length of the clinical internship shall depend upon the grades received in the examination and the clinical training already satisfactorily completed by the individual prior to taking the examination. On and after January 1, 1987, individuals with 800 or more hours of documented clinical training shall be deemed to have met this requirement. The purpose of the clinical internship training program shall be to assure a minimum level of clinical competence. Each applicant who qualifies for a license shall pay, as a condition precedent to its issuance and in addition to other fees required, the initial licensure fee. SEC. 4. Title 11.5 (commencing with Section 1730) is added to Part 3 of the Code of Civil Procedure, to read: TITLE 11.5. COURT-RELATED ALTERNATIVE DISPUTE RESOLUTION PROCESSES 1730. (a) The Judicial Council shall establish pilot programs in four superior courts to assess the benefits of early mediation of civil cases. In two of these pilot program courts, the court shall have the authority to make mandatory referrals to mediation, pursuant to this title. (b) The Judicial Council shall select the courts to participate in the pilot program. 1731. As used in this title: (a) "Alternative dispute resolution process" or "ADR process" means a process in which parties meet with a third party neutral to assist them in resolving their dispute outside of formal litigation. (b) "General civil case" means all civil cases except probate, guardianship, conservatorship, family law (including proceedings under the Family Law Act, Uniform Parentage Act, and Uniform Child Custody Jurisdiction Act; freedom from parental custody and control proceedings; and adoption proceedings), juvenile court proceedings, small claims appeals, and other civil petitions, as defined in the Regulations on Superior Court Reports to the Judicial Council on the effective date of this section, including petitions for a writ of mandate or prohibition, temporary restraining orders, harassment restraining orders, domestic violence restraining orders, writs of possession, appointment of a receiver, release of property from lien, and change of name. (c) "Mediation" means a process in which a neutral person or persons facilitate communication between disputants to assist them in reaching a mutually acceptable agreement. 1732. (a) Except as otherwise provided by rule pursuant to subdivision (b), this title shall apply to all general civil cases filed in the pilot courts after January 1, 2000. (b) The Judicial Council may, by rule, exempt specified categories of general civil cases from the provisions of this title. 1733. Any party who has been ordered to mediation pursuant to this title, or who has participated in a voluntary mediation with all of the other parties, is exempt from being compelled to participate in any other judicially ordered arbitration or mediation. 1734. (a) Notwithstanding Section 68616 of the Government Code or any other provision of law, in cases subject to this title, the court may hold a status conference not earlier than 90 days and not later than 150 days after the filing of the complaint. However, at or before the conference, any party may request that the status conference be continued on the grounds that the party has been unable to serve an essential party to the proceeding. (b) At this status conference, the court shall confer with the parties about alternative dispute resolution processes and, in the two pilot program courts authorized to make mandatory referrals to mediation, the court may refer the parties to mediation in accordance with this title, if the court, in its discretion, determines there is good cause for ordering mediation. Before making a referral, the court shall consider the willingness of the parties to mediate. 1735. (a) Each pilot program court authorized to make mandatory referrals to mediation pursuant to this title shall establish a panel of mediators. (b) In cases referred to mediation pursuant to this title, the parties shall select the mediator. The mediator selected by the parties need not be from the court's panel of mediators. However, if the mediator is not from the court's panel, the court may approve compensation for the fees for that mediator's services from court funds pursuant to subdivision (c). Otherwise, the parties shall be responsible for paying any fees for the mediator's services, and each party to the proceeding shall share equally in the fee of the mediator, except where the parties agree otherwise. If the mediator is from the court's panel of mediators then the parties shall not be required to pay a fee for the mediator's services. If the parties do not select a mediator within the time period specified in the rules adopted by the Judicial Council, a mediator shall be selected by the court from the court's panel of mediators. If a mediator from the court's panel is not available to mediate a case referred pursuant to this subdivision in a timely manner, this title shall not apply. (c) The Judicial Council shall adopt rules to implement this section, including rules establishing requirements for the panels of mediators, the procedures to be followed in selecting a mediator, and the compensation of mediators who conduct mediations pursuant to this title. 1736. The mediator shall schedule the early mediation within 60 days following the early status conference, unless any party requests a later date that is within 150 days following the early status conference or the court finds, for good cause, that a later date is necessary, or where counsel, a party, or the mediator is unavailable during that time period, or the court finds that discovery reasonably necessary for a meaningful mediation cannot be conducted prior to the end of that period. 1737. Trial counsel, parties, and persons with full authority to settle the case, shall personally attend the mediation, unless excused by the court for good cause. If any consent to settle is required for any reason, the party with the consent authority shall be personally present to the mediation. If no trial counsel, party, or person with full authority to settle a case is personally present at the mediation, unless excused for good cause, the party who is in compliance with this section may immediately terminate the mediation. 1738. (a) All statements made by the parties during a mediation under this title shall be subject to Sections 703.5 and 1152, and Chapter 2 (commencing with Section 1115) of Division 9 of, the Evidence Code. (b) Any reference to a mediation during any subsequent trial shall constitute an irregularity in the proceedings of the trial for the purposes of Section 657. 1739. (a) In the event that the parties to mediation are unable to reach a mutually acceptable agreement and any party to the mediation wishes to terminate the mediation at any time, then the mediator shall file a statement of nonagreement. This statement shall be in a form to be developed by the Judicial Council. (b) Upon the filing of a statement of nonagreement, the matter shall be calendared for trial, by court or jury, both as to law and fact, insofar as possible, so that the trial shall be given the same place on the active list as it had prior to mediation, or shall receive civil priority on the next setting calendar. 1740. (a) Submission of an action to mediation pursuant to this title shall not suspend the running of the time periods specified in Chapter 1.5 (commencing with Section 583.110) of Title 8 of Part 2, except as provided in this section. (b) If an action is or remains submitted to mediation pursuant to this title more than four years and six months after the plaintiff has filed the action, then the time beginning on the date four years and six months after the plaintiff has filed the action and ending on the date on which a statement of nonagreement is filed pursuant to this section shall not be included in computing the five-year period specified in Section 583.310. 1741. Any party who participates in mediation pursuant to this title shall retain the right to obtain discovery to the extent available under the Civil Discovery Act of 1986 (Article 3 (commencing with Section 2016) of Chapter 3 of Title 3 of Part 4). 1742. On or before January 1, 2003, the Judicial Council shall submit a report to the Legislature and to the Governor concerning the pilot programs conducted pursuant to this title. The report shall examine, among other things, the settlement rate, the timing of settlement, the litigants' satisfaction with the dispute resolution process and the costs to the litigants and the courts. The Judicial Council shall, by rule, require that each pilot program court provide the Judicial Council with the data that will enable the Judicial Council to submit the report required by this section. 1743. This title shall remain in effect only until January 1, 2004, an as of that date is repealed, unless a later enacted statute deletes or extends that date. SEC. 5. Section 4101.2 is added to the Food and Agricultural Code, to read: 4101.2. (a) Notwithstanding any other provision of law, the California Science Center, with the approval of the Director of General Services, may enter into a long-term lease agreement, not to exceed 40 years, with terms and conditions determined by the director to be in the best interest of the state, with the Los Angeles Unified School District to convert the Armory and surrounding land in or near Exposition Park to a demonstration mathematics and science-based school. (b) For the purposes of carrying out subdivision (a), all of the following requirements apply: (1) Plans shall be developed by the Los Angeles Unified School District for the conversion described in subdivision (a). (2) The Los Angeles Unified School District shall demonstrate to the Director of General Services that it has sufficient funds, from sources other than the California Science Center, to complete the conversion. (3) The Los Angeles Unified School District shall give attention to the historical preservation of the Armory in developing plans and completing the conversion. (4) All lease documents necessary to complete the conversion shall be approved by the Director of General Services prior to their execution. SEC. 6. Section 8690.6 of the Government Code is amended to read: 8690.6. (a) There is hereby established in the Special Fund for Economic Uncertainties a Disaster Response-Emergency Operations Account. Notwithstanding Section 13340, moneys in the account are continuously appropriated, subject to the limitations specified in subdivisions (c) and (d), without regard to fiscal years, for allocation by the Director of Finance to state agencies for disaster response operation costs incurred by state agencies as a result of a state of emergency proclamation by the Governor. These allocations may be for activities that occur within 365 days after a declaration of emergency by the Governor, as authorized pursuant to subdivision (c), or for activities that occur after the 365th day after a declaration of emergency by the Governor, as authorized pursuant to subdivision (d). (b) It is the intent of the Legislature that the Disaster Response-Emergency Operations Account have an unencumbered balance of one million dollars ($1,000,000) at the beginning of each fiscal year. In the event that this account requires additional moneys to meet claims against the account, the Director of Finance may transfer moneys from the Special Fund for Economic Uncertainties to the account in that amount sufficient to pay the amount of the claims that exceed the unencumbered balance in the account. (c) For activities that occur within 365 days after a declaration of emergency by the Governor, the funds shall be allocated subject to the conditions of this section and in accordance with Section 27.00 of the annual Budget Act, except that the allocations may be made 30 days or less after notification of the Legislature pursuant to subdivision (b) of that section. (d) For activities that occur after the 365th day after a declaration of emergency by the Governor, the funds shall be allocated subject to the conditions of this section and in accordance with Section 27.00 of the annual Budget Act. (e) Notwithstanding subdivision (a) of Section 27.00 of the annual Budget Act, authorizations for acquisitions, relocations, and environmental mitigations related to activities, as described in subdivision (c) or (d), shall be authorized pursuant to this section. However, these funds may only be authorized for needs that are a direct consequence of the declared emergency where failure to undertake the project may interrupt essential state services or jeopardize public health or safety. In addition, any acquisition accomplished under this subdivision shall comply with any otherwise applicable law, except as provided in the first sentence of this subdivision. (f) No funds allocated under this section shall be used to supplant federal funds otherwise available in the absence of state financial relief. (g) The amount of financial assistance provided to an individual, business, or governmental entity under this section, or pursuant to any other program of state-funded disaster assistance, shall be deducted from sums received in payment of damage claims asserted against the state, its agents, or employees, for causing or contributing to the effects of the proclaimed disaster. (h) No public entity administering disaster assistance to individuals shall receive funds under this section unless it administers that assistance pursuant to the following criteria: (1) All applications, forms, and other written materials presented to persons seeking assistance shall be available in English and in the same language as that used by the major non-English-speaking group within the disaster area. (2) Bilingual staff who reflect the demographics of the disaster area shall be available to applicants. (i) This section shall become inoperative on July 1, 2002, and, as of January 1, 2003, is repealed, unless a later enacted statute, which becomes effective on or before January 1, 2003, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 7. Section 15301 of the Government Code is amended to read: 15301. (a) The El Centro armory in Imperial County; the Culver City, Glendale, Inglewood, Long Beach on 7th Street, Pomona, and Sylmar armories, and the West Los Angeles armory on Federal Avenue, in Los Angeles County; the Merced armory in Merced County; the Fullerton and Santa Ana armories in Orange County; the Indio and Riverside armories in Riverside County; the Escondido and Vista armories in San Diego County; the San Mateo armory in San Mateo County; the Santa Barbara and Santa Maria armories in Santa Barbara County; the Gilroy and Sunnyvale armories, and the San Jose armory on Hedding Street, in Santa Clara County; the Santa Cruz and Watsonville armories in Santa Cruz County; the Redding armory in Shasta County; the Petaluma and Santa Rosa armories in Sonoma County; and the Oxnard armory in Ventura County, shall be made available to these counties or any city in these counties for the purpose of providing temporary shelter for homeless persons during the period from December 1 through March 15 each year, as a temporary measure to allow adequate time for government entities in these counties to develop other suitable homeless shelter arrangements. If severe weather conditions exist between November 1 through March 31, the Military Department may extend the use of the armories to include November 1 to December 1 and March 15 to March 31. (b) If the communities in Calexico, Chico, Corona, El Cajon, Roseville, or San Rafael require the use of the armories in those communities as emergency shelters, the county or city may request use of the armories through the Office of Emergency Services, if the county or city has exhausted all other available resources for housing homeless persons. SEC. 8. Section 11754.1 is added to the Government Code, to read: 11754.1. (a) The Stephen P. Teale Data Center may establish rates and collect payments from state agencies for providing services to those agencies. The methodology for computing costs and billing rates shall be subject to the approval of the Director of Finance. (b) All money received by the Stephen P. Teale Data Center pursuant to this section shall be deposited in the Stephen P. Teale Data Center Revolving Fund. In order to assure that there is adequate cash in the fund, the Stephen P. Teale Data Center may require monthly payments in advance by client agencies, based on estimated billings. By mutual agreement between the Stephen P. Teale Data Center and the applicable state agency, a state agency may make monthly, quarterly, or annual payments in advance or arrears. (c) Consistent with subdivision (b), and pursuant to Section 11255, the Controller shall transfer any amounts so authorized by the Stephen P. Teale Data Center. The Stephen P. Teale Data Center shall notify each affected state agency upon requesting the Controller to make the transfer. SEC. 9. Section 68616 of the Government Code is amended to read: 68616. Delay reduction rules shall not require shorter time periods than as follows: (a) Service of the complaint within 60 days after filing. Exceptions, for longer periods of time, (1) may be granted as authorized by local rule and (2) shall be granted on a showing that service could not reasonably be achieved within the time required with the exercise of due diligence consistent with the amount in controversy. (b) Service of responsive pleadings within 30 days after service of the complaint. The parties may stipulate to an additional 15 days. Exceptions, for longer periods of time, may be granted as authorized by local rule. (c) Time for service of notice or other paper under Sections 1005 and 1013 of the Code of Civil Procedure and time to plead after service of summons under Section 412.20 of the Code of Civil Procedure shall not be shortened except as provided in those sections. (d) Within 30 days of service of the responsive pleadings, the parties may, by stipulation filed with the court, agree to a single continuance not to exceed 30 days. It is the intent of the Legislature that these stipulations not detract from the efforts of the courts to comply with standards of timely disposition. To this extent, the Judicial Council shall develop statistics that distinguish between cases involving, and not involving, these stipulations. (e) Except in complex cases, no status conference, or similar event, other than a challenge to the jurisdiction of the court, may be required to be conducted sooner than 30 days after service of the first responsive pleadings, or no sooner than 30 days after expiration of a stipulated continuance, if any, pursuant to subdivision (d). For purposes of this subdivision, a "complex case" shall be as defined in the California Rules of Court. (f) Article 3 (commencing with Section 2016) of Chapter 3 of Title 3 of Part 4 of the Code of Civil Procedure shall govern discovery, except in arbitration proceedings. (g) No case may be referred to arbitration prior to 210 days after the filing of the complaint, exclusive of the stipulated period provided for in subdivision (d). No rule adopted pursuant to this article may contravene Sections 638 and 639 of the Code of Civil Procedure. (h) Unnamed (DOE) defendants shall not be dismissed prior to the conclusion of the introduction of evidence at trial, except upon stipulation or motion of the parties. (i) Notwithstanding Section 170.6 of the Code of Civil Procedure, in direct calendar courts, challenges pursuant to that section shall be exercised within 15 days of the party's first appearance. Master calendar courts shall be governed solely by Section 170.6 of the Code of Civil Procedure. (j) This section applies to all cases subject to this article which are filed on or after January 1, 1991. (k) This section shall remain in effect only until January 1, 2004, and as of that date is repealed, unless a later enacted statute deletes or extends that date. SEC. 10. Section 68616 is added to the Government Code, to read: 68616. Delay reduction rules shall not require shorter time periods than as follows: (a) Service of the complaint within 60 days after filing. Exceptions, for longer periods of time, (1) may be granted as authorized by local rule and (2) shall be granted on a showing that service could not reasonably be achieved within the time required with the exercise of due diligence consistent with the amount in controversy. (b) Service of responsive pleadings within 30 days after service of the complaint. The parties may stipulate to an additional 15 days. Exceptions, for longer periods of time, may be granted as authorized by local rule. (c) Time for service of notice or other paper under Sections 1005 and 1013 of the Code of Civil Procedure and time to plead after service of summons under Section 412.20 of the Code of Civil Procedure shall not be shortened except as provided in those sections. (d) Within 30 days of service of the responsive pleadings, the parties may, by stipulation filed with the court, agree to a single continuance not to exceed 30 days. It is the intent of the Legislature that these stipulations not detract from the efforts of the courts to comply with standards of timely disposition. To this extent, the Judicial Council shall develop statistics that distinguish between cases involving, and not involving, these stipulations. (e) No status conference, or similar event, other than a challenge to the jurisdiction of the court, may be required to be conducted sooner than 30 days after service of the first responsive pleadings, or no sooner than 30 days after expiration of a stipulated continuance, if any, pursuant to subdivision (d). (f) Article 3 (commencing with Section 2016) of Chapter 3 of Title 3 of Part 4 of the Code of Civil Procedure shall govern discovery, except in arbitration proceedings. (g) No case may be referred to arbitration prior to 210 days after the filing of the complaint, exclusive of the stipulated period provided for in subdivision (d). No rule adopted pursuant to this article may contravene Sections 638 and 639 of the Code of Civil Procedure. (h) Unnamed (DOE) defendants shall not be dismissed prior to the conclusion of the introduction of evidence at trial, except upon stipulation or motion of the parties. (i) Notwithstanding Section 170.6 of the Code of Civil Procedure, in direct calendar courts, challenges pursuant to that section shall be exercised within 15 days of the party's first appearance. Master calendar courts shall be governed solely by Section 170.6 of the Code of Civil Procedure. (j) This section applies to all cases subject to this article which are filed on or after January 1, 1991. (k) This section shall become operative on January 1, 2004. SEC. 11. Section 68617 is added to the Government Code, to read: 68617. On or before October 30, 2002, the Judicial Council shall submit a report to the Legislature and the Governor regarding the effectiveness of the Centers for Complex Litigation established pursuant to the Budget Act of 1999. The report shall examine, among other things, the number of complex cases filed, the impact of the centers on case and calendar management, and the impact on the trial courts, the attorneys, and the parties, and shall make recommendations to the Legislature and the Governor. SEC. 12. Section 44000.1 is added to the Health and Safety Code, to read: 44000.1. It is the intent of the Legislature that the amendments made to this part by the act that added this section during the 1999-2000 Regular Session not negatively affect the ability of the state to achieve its emission reduction goals. SEC. 13. Section 44011 of the Health and Safety Code is amended to read: 44011. (a) All motor vehicles powered by internal combustion engines that are registered within an area designated for program coverage shall be required biennially to obtain a certificate of compliance or noncompliance, except for all of the following: (1) Every motorcycle, and every diesel-powered vehicle, until the department, pursuant to Section 44012, implements test procedures applicable to motorcycles or to diesel-powered vehicles, or both. (2) Any motor vehicle that has been issued a certificate of compliance or noncompliance or a repair cost waiver upon a change of ownership or initial registration in this state during the preceding six months. (3) (A) Prior to January 1, 2003, any motor vehicle manufactured prior to the 1974 model-year. (B) Beginning January 1, 2003, any motor vehicle that is 30 or more model-years old. (4) (A) Any motor vehicle four or less model-years old. (B) The department, by regulation, may increase the exemption provided by this paragraph to include any motor vehicle up to six or less model-years old. (C) Any motor vehicle excepted by this paragraph shall be subject to testing and to certification requirements as determined by the department, if any of the following apply: (i) The department determines through remote sensing activities or other means that there is a substantial probability that the vehicle has a tampered emission control system or would fail for other cause a smog check test as specified in Section 44012. (ii) The vehicle was previously registered outside this state and is undergoing initial registration in this state. (iii) The vehicle is being registered as a specially constructed vehicle. (iv) The vehicle has been selected for testing pursuant to Section 44014.7 or any other provision of this chapter authorizing out-of-cycle testing. (5) In addition to the vehicles exempted pursuant to paragraph (4), any motor vehicle or class of motor vehicles exempted pursuant to subdivision (b) of Section 44024.5. It is the intent of the Legislature that the department, pursuant to the authority granted by this paragraph, exempt at least 15 percent of the lowest emitting motor vehicles from the biennial smog check inspection. (6) Any motor vehicle that the department determines would present prohibitive inspection or repair problems. (7) Any vehicle registered to the owner of a fleet licensed pursuant to Section 44020 if the vehicle is garaged exclusively outside the area included in program coverage, and is not primarily operated inside the area included in program coverage. (b) Vehicles designated for program coverage in enhanced areas shall be required to obtain inspections from appropriate smog check stations operating in enhanced areas. SEC. 14. Section 44017.1 of the Health and Safety Code is amended to read: 44017.1. (a) For purposes of this section, "low-income motor vehicle owner" means a person whose income does not exceed 185 percent of the federal poverty level. (b) Notwithstanding subdivision (a) of Section 44017, for low-income motor vehicle owners qualified under Section 44062.1, the repair cost limit, including parts and labor, shall be two hundred fifty dollars ($250) in all areas where the program operates. However, the department may decrease that amount, to not more than two hundred dollars ($200), if the department determines that participation rates are unsatisfactory. (c) Until such time as a repair assistance program becomes effective pursuant to Section 44062.1, an economic hardship extension shall be issued upon request to a qualified low-income motor vehicle owner whose motor vehicle has been tested but does not meet applicable emissions standards and the necessary repairs exceed the repair cost limit specified in subdivision (b). SEC. 15. Section 44060 of the Health and Safety Code is amended to read: 44060. (a) The department shall prescribe the form of the certificate of compliance or noncompliance, repair cost waivers, and economic hardship extensions. (b) The certificates, repair cost waivers, and economic hardship extensions shall be in the form of an electronic entry filed with the department, the Department of Motor Vehicles, and any other person designated by the department. The department shall ensure that the motor vehicle owner or operator is provided with a written report, signed by the licensed technician who performed the inspection, of any test performed by a smog check station, including a pass or fail indication, and written confirmation of the issuance of the certificate. (c) (1) The department shall charge a fee to a smog check station, including a test-only station, and a station providing referee functions, for a motor vehicle inspected at that station that meets the requirements of this chapter and is issued a certificate of compliance, a certificate of noncompliance, repair cost waiver, or economic hardship extension. (2) The fee charged pursuant to paragraph (1) shall be calculated to recover the costs of the department and any other state agency directly involved in the implementation, administration, or enforcement of the motor vehicle inspection and maintenance program, and shall not exceed the amount reasonably necessary to fund the operation of the program, including all responsibilities, requirements, and obligations imposed upon the department or any of those state agencies by this chapter, that are not otherwise recoverable by fees received pursuant to Section 44034. (3) Except for adjustments to reflect changes in the Consumer Price Index, as published by the United States Bureau of Labor Statistics, the fee for each certificate, waiver, or extension shall not exceed seven dollars ($7). (4) Fees collected by the department pursuant to this subdivision shall be deposited in the Vehicle Inspection and Repair Fund. It is the intent of the Legislature that a prudent surplus be maintained in the Vehicle Inspection and Repair Fund. If the surplus exceeds the reasonable costs of administration of the programs specified in this chapter and in Chapter 20.3 (commencing with Section 9880) of Division 3 of the Business and Professions Code, the department shall, by regulation, prescribe a lower fee for the certificates, waivers, and extensions. (d) (1) Motor vehicles exempted under paragraph (4) of subdivision (a) of Section 44011 that are four or less model-years old shall be subject to an annual smog abatement fee of four dollars ($4). If the department increases the exemption in that paragraph (4) to include motor vehicles that are five or six model-years old, the department may, by regulation, subject those vehicles to the annual smog abatement fee of four dollars ($4). The department may also, by regulation, subject motor vehicles that are exempted under paragraph (5) of subdivision (a) of Section 44011 to the four dollar ($4) annual smog abatement fee. Payment of the annual smog abatement fee shall be made to the Department of Motor Vehicles at the time of registration of the motor vehicle. (2) Fees collected pursuant to this subdivision shall be deposited on a daily basis into the Vehicle Inspection and Repair Fund. (e) The sale or transfer of the certificate, waiver, or extension by a licensed smog check station or test-only station to any other licensed smog check station or to any other person, and the purchase or acquisition of the certificate, waiver, or extension, by any person, other than from the department, the department's designee, or pursuant to a vehicle's inspection or repair conducted pursuant to this chapter, is prohibited. (f) Following implementation of the electronic entry certificate under subdivision (b), the department may require the modification of the analyzers and other equipment required at smog check stations to prevent the entry of a certificate that has not been issued or validated through prepayment of the fee authorized by subdivision (c). (g) The fee charged by licensed smog check stations to consumers for a certificate, waiver, or extension shall be the same amount that is charged by the department. SEC. 16. Section 44062.1 of the Health and Safety Code is amended to read: 44062.1. (a) The department shall offer a repair assistance program through entities authorized to perform referee functions. (b) (1) The repair assistance program shall be available to the following eligible individuals whose vehicles have failed a smog check inspection: (A) An individual, based on a maximum income level of 185 percent of the federal poverty level, as published quarterly in the Federal Register by the Department of Health and Human Services. (B) An owner of a motor vehicle who is directed to a test-only facility pursuant to Section 44010.5 or 44014.7. (2) The department shall offer repair cost assistance, funded by the High Polluter Repair or Removal Account in the Vehicle Inspection and Repair Fund created pursuant to subdivision (a) of Section 44091 and revenues generated by the smog impact fee pursuant to Section 6262 of the Revenue and Taxation Code, to individuals based on the cost effectiveness and air quality benefit of the needed repair. Repair assistance may include retesting costs. (3) An applicant for repair assistance shall file an application on a form prescribed by the department and shall certify under penalty of perjury that the applicant meets the applicable eligibility standards. (4) Verification of low-income eligibility shall be based on at least one form of documentation, as determined by the department, including, but not limited to, (A) an income tax return, (B) an employment warrant, or (C) a form of public assistance verification. (c) The repair assistance program shall be funded by the High Polluter Repair or Removal Account. A minimum of twenty million dollars ($20,000,000) shall be made available annually for the program through funding provided by revenues generated by the smog impact fee pursuant to Section 6262 of the Revenue and Taxation Code. (d) All repairs subsidized by the state through the program shall be performed at a repair station licensed and certified pursuant to Sections 44014 and 44014.2. Repair shall be based upon a preapproved list of repairs for cost-effective emission reductions. (e) The qualified low-income motor vehicle owner receiving repair assistance pursuant to this section shall contribute a copayment, as determined by the department as specified in Section 44017.1, either in cash, or in emissions-related partial repairs as verified by a test-only station pursuant to paragraph (2) of subdivision (c) of Section 44015, or a combination thereof. For an owner of a motor vehicle described in subparagraph (B) of paragraph (1) of subdivision (b), the department shall impose a copayment at least equivalent to the amount imposed on a low-income individual receiving assistance under this section. If the repair cost exceeds the applicable repair cost limit, the department shall inform a motor vehicle owner of all options for compliance at the time of testing and repair. (f) The department may increase its contribution toward the repair of a motor vehicle under this program in excess of the amount authorized for the repair of a high-polluter pursuant to paragraph (1) of subdivision (b) of Section 44094, if the department determines that the expenditure is cost-effective. (g) The department shall collect data from the program to provide information on how to improve the program. Data collection shall include all of the following: (1) The number of motor vehicle owners that are eligible for repair assistance. (2) The number of eligible motor vehicle owners that use repair assistance funds. (3) The potential for fraud. (4) The average repair bills. (5) The types of repairs being done. (6) The amount of partial repairs done prior to receipt of repair assistance. (7) The emissions benefits of providing repair assistance. (h) The department shall collect data and develop information and shall report to the Legislature on or before April 1, 1999, on eligibility criteria, program participation, the cost of vehicle repairs, and the funding resources needed to implement the program. (i) For purposes of this section, "low-income motor vehicle owner" means a person whose income does not exceed 185 percent of the federal poverty level. SEC. 17. Section 44091.2 is added to the Health and Safety Code, to read: 44091.2. It is the intent of the Legislature that if the impact fee imposed pursuant to Section 6262 of the Revenue and Taxation Code is ruled unconstitutional by an appellate court or the California Supreme Court, or if the state is in any manner prevented by either of those courts from imposing or collecting the fee, the repair assistance program implemented pursuant to Section 44062.1 and any voluntary vehicle retirement program implemented by the department not be supported by money appropriated from the General Fund. SEC. 18. Section 44094 of the Health and Safety Code is amended to read: 44094. (a) Participation in the high polluter repair or removal program specified in this article and Article 10 (commencing with Section 44100) shall be voluntary and shall be available to the owners of high polluters that are registered in an area that is subject to an inspection and maintenance program, have been registered for at least 24 months in the district where the credits are to be applied and, are presently operational, and meet other criteria, as determined by the department. (b) The program shall provide for both of the following: (1) As to the repair of a high polluter, payment to the owner of up to 80 percent of the total cost of repair, as determined by the department, but the payment shall not exceed four hundred fifty dollars ($450). (2) As to the removal of a high polluter, the program shall be subject to Article 10 (commencing with Section 44100). (c) The department may specify the amount of money that may be paid to an owner of a high-polluting motor vehicle who voluntarily retires the vehicle. The amount paid by the department shall be based on the cost effectiveness and the air quality benefit of retiring the vehicle, as determined by the department. (d) The department may authorize participation in the program based on a reasonable estimate of the future revenues that will be available to the program. SEC. 19. Section 50880 of the Health and Safety Code is amended to read: 50880. (a) The Legislature finds and declares all of the following: (1) That there are more than 600,000 families in California who face the enormous challenge of moving rapidly from welfare to work in order to meet federal and state deadlines. (2) That a significant number of these families face substantial obstacles in meeting these deadlines inasmuch as a vast percentage of these families pay 50 to 80 percent of their welfare checks for housing, live in counties with unemployment rates that are as high as 30 percent, cannot locate infant or child care because of no availability or long waiting lists, and lack personal or public transportation. (3) That approximately 1,500,000 children receiving Aid to Families with Dependent Children (AFDC) will require child care when their mothers begin private or public employment and that only four out of every 100 slots in licensed child care centers are open to infants. (4) That most of the 600,000 parents who will be required to work lack training, and a high percentage lack a high school diploma, job experience, and job retention skills in order to earn the income necessary to sustain themselves and their children without welfare assistance. Studies demonstrate that a welfare mother in Los Angeles with one toddler will need to find a job earning thirteen dollars and seven cents ($13.07) per hour in order to provide housing, and the basic necessities and health care. A mother of two needs seventeen dollars and ten cents ($17.10) per hour. (5) That in response to this complex problem facing so many endangered families, that the "Families Moving to Work Program" shall be quickly implemented within the California Department of Housing and Community Development by revamping an older, successful program. (b) The Legislature intends that the "Families Moving to Work Program" shall test innovative strategies of providing affordable housing combined with onsite child care and a job training program. The housing shall be located on a main transportation system. (c) The Legislature intends that the funds included in Item 2240-106-0001 of the Budget Act of 1999 be used as an integral part of a county's welfare plan as a means of assisting families qualifying for CalWORKs benefits and experiencing the greatest difficulty moving from welfare to work. The Legislature further intends for this to be a transitional program that will provide focused, enriched resources to CalWORKs households during the period of moving from welfare to work, and that upon the completion of the program, the household will be assisted in locating and moving to affordable, permanent housing, and then a new CalWORKs household will be provided assistance in the Families Moving to Work Program. The Legislature intends that the department may establish goals and timelines for moving from welfare to work, and that broad criteria for this transition shall be applied to households on an individual basis. (d) The Legislature finds and declares that the legislative findings and declarations set forth in Sections 1 to 5, inclusive, of both Chapters 1042 and 1043 of the Statutes of 1979, remain valid and are applicable to the program enacted by this chapter. The Legislature finds and declares that there is an urgent need to establish a program to design new living environments, part of which will include social and economic programs, so that working parents, job-seeking parents, and homeless parents can build productive lives for themselves and their children. SEC. 20. Section 50881 of the Health and Safety Code is amended to read: 50881. This chapter shall be known and may be cited as the Families Moving to Work Program. The Families Moving to Work Program shall be operated as a component of the Rental Housing Construction Program of the department. SEC. 21. Section 50881.5 of the Health and Safety Code is amended to read: 50881.5. The definitions in this section apply to all activities conducted pursuant to this chapter. Except as otherwise provided in this chapter, or unless the context requires otherwise, the definitions in Chapter 2 (commencing with Section 50050) of Part 1 also apply to this chapter. (a) "Account" means the Families Moving to Work Account established by Section 50882. (b) "Assisted unit" means a unit in a community housing development that is affordable to an eligible household as a result of a payment made by the department pursuant to this chapter. The department shall adopt regulations that establish a method for computing rents for eligible households in accordance with Section 50771.1. (c) "Community housing development" means a development of 20 or more rental or cooperative units on one or more sites, that includes the social and economic features described in this chapter. (d) "Congregate housing" or "congregate housing development," means a new or rehabilitated large multibedroom structure in which more than two families share common living areas and child care, cleaning, cooking, and other household responsibilities. (e) "Development" means both new construction and rehabilitation. (f) "Development or rehabilitation costs" has the same meaning as "development costs" as defined by subdivision (c) of Section 50735, paragraph (5) of subdivision (b) of Section 50668.5, and paragraph (3) of subdivision (b) of Section 50771.1, respectively. (g) "Eligible household" means households as defined in Section 50079.5 or 50105, respectively. (h) "Sponsor" means any nonprofit corporation, cooperative, or local public agency, or any combination thereof, including limited partnerships in which the managing general partner is an eligible nonprofit corporation. SEC. 22. Section 50882 of the Health and Safety Code is amended to read: 50882. (a) The Families Moving to Work Account is hereby established in the Rental Housing Construction Fund. The account shall be organized into subaccounts as provided in this chapter. All of the following moneys shall be paid into the account: (1) Any moneys appropriated and made available by the Legislature for the purposes of the account. (2) Any moneys that the department receives in repayment or return of loans made from the account, including any interest on those loans. (3) Any other moneys that may be made available to the department for the purposes of this chapter from any other source or sources. (b) Notwithstanding Section 13340 of the Government Code, all money in the account is hereby continuously appropriated to the department and shall be utilized for the purposes of Article 1 (commencing with Section 50880) to Article 4 (commencing with Section 50893), inclusive, including administrative expenses of the department for the implementation and operation of the programs created by this chapter. All interest or other increment resulting from investment or deposit of moneys in the account shall be deposited in the account, notwithstanding Section 16305.7 of the Government Code. Moneys in the account are not subject to transfer to any other fund, except as set forth in this chapter, pursuant to any provision of Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code, except the Surplus Money Investment Fund. (c) At the time funding availability is announced by the department, the department may apportion funds available for loans between community housing developments and congregate housing developments. The plan for apportioning funds may include a priority for funding loans for new construction, acquisition and rehabilitation, or rehabilitation. (d) Notwithstanding any other provision of law, on or after July 1, 1996, the unencumbered account balance and reserves shall be transferred out of the Family Housing Demonstration Account, but shall be retained within the Rental Housing Construction Fund. SEC. 23. Section 50884 of the Health and Safety Code is repealed. SEC. 24. Section 50887 of the Health and Safety Code is amended to read: 50887. The department may make awards from the account for the purposes of assisting the development of community housing developments. To the extent feasible, the department shall ensure that the funds are equally distributed between the northern and southern portions of the state. To the extent feasible, not less than 20 percent of the funds awarded pursuant to this chapter shall be allocated to rural areas. SEC. 25. Section 50888.3 of the Health and Safety Code is amended to read: 50888.3. The housing component of a community housing development shall include the following features and criteria: (a) At least 30 percent of the units shall be assisted units, and those assisted units shall be available on a priority basis to, or occupied by, eligible households at affordable rent. (b) Not less than two-thirds of all assisted units shall, to the extent feasible, be available on a priority basis to, or occupied by, households as defined in Section 50105. (c) The assisted units shall be available on a priority basis to, or occupied by, families with one or more children, depending on the size of the dwelling unit. (d) The department shall encourage the provision of three bedroom or larger units in each community housing development. The assisted units shall consist of substantially the same range of unit sizes as are available in nonassisted units, as determined by the department. SEC. 26. Section 50888.5 of the Health and Safety Code is amended to read: 50888.5. The jobs and economic development component of a community housing development shall include all of the following features and criteria: (a) The sponsor shall consider existing employment at nearby facilities, the potential of employment at nearby facilities through publicly assisted or other job-training or entry-level employment programs, and employment in the management and operation of the community housing development and its child care center. (b) The sponsor shall develop a program of job placement and training for residents, which shall be implemented upon initial occupancy. The program shall consider employment and job training opportunities within the community housing development. SEC. 27. Section 50888.7 of the Health and Safety Code is amended to read: 50888.7. (a) The supportive services of the community housing development shall include all of the following features and criteria: (1) A child care center and play area adequate in size for the anticipated children of the residents which may also serve children of nonresidents. (2) A community room, which may also be the child care center. (3) Adequate laundry facilities. (b) The supportive services of the community housing development may include other features as appropriate. SEC. 28. Section 50889.5 of the Health and Safety Code is amended to read: 50889.5. Applications for fund commitments shall be accepted by the department at any time. Fund commitments shall be based on a ranking of applications. (a) In making this ranking, the department shall give priority to projects that do all of the following: (1) Serve the greater number of eligible households with the lowest income, as defined in Section 50105, for the greatest period of time above the minimum number of years. (2) Are located in areas where the housing need is great, as determined by the department, taking into consideration, among other factors, low vacancy rates, high market rents, and long waiting lists for subsidized housing. (3) Complement the implementation of an existing housing program. (4) Maximize private, local, and other funding sources. (5) Are economically feasible. (6) Are reasonable in cost. (b) In making funding awards, the department also shall do both of the following: (1) Evaluate the capability of the sponsor to own, construct or rehabilitate, and manage the housing developments, including those with child care and other support services. (2) Require evidence from the local welfare department, to be submitted as part of the sponsor's application, that the proposed development is consistent with the Welfare Reform Plan required pursuant to Section 10531 of the Welfare and Institutions Code, as adopted by the county board of supervisors. SEC. 29. Section 50890 of the Health and Safety Code is amended to read: 50890. The Legislature finds and declares all of the following: (a) That in addition to the need for housing described in this chapter as community housing developments, there is an additional critical need for smaller scale congregate housing suitable to single-parent households in which families share large, multibedroom houses with common living areas and who share child care, cleaning, cooking, and other household responsibilities. (b) That congregate housing can be constructed or converted at little more cost than conventional housing, and at less cost than conventional apartment houses. The purposes of this housing can be achieved through a combination of innovative and traditional designs, including, but not limited to, the construction of "flexibility" houses where only the exterior walls and those around the kitchen and bathroom are permanent, or the use of large rooms with interior sliding doors or screens to provide for personal or social spaces. (c) That this type of housing can reduce reliance on public assistance; increase self-reliance and joint problem solving; assist single parents to obtain and keep employment; provide fulfilling activity for elderly or handicapped persons; provide for more economical use of housing stock; and ensure the use of scarce family resources in a manner which maximizes the health, safety, and development of children and younger single parents. Notwithstanding all of these benefits, there are no public programs that assist in the provision or financing of this housing, and private financing or provision of this housing is almost nonexistent. SEC. 30. Section 50893.5 of the Health and Safety Code is amended to read: 50893.5. (a) The department shall monitor the construction and operation of the community housing developments and congregate housing developments developed pursuant to this chapter in order to ensure compliance with loan conditions, contract obligations, and this chapter and any regulations adopted pursuant to this chapter. The department may charge a fee to the sponsor to offset the cost of monitoring. (b) The department may enter into a contract with a local public agency to monitor the operation of community housing developments and congregate housing developments. SEC. 31. Section 50893.7 of the Health and Safety Code is amended to read: 50893.7. The regulatory agreement shall contain at least the following provisions, and any others determined necessary by the department, each of which is a binding requirement: (a) Substantially the same provisions as are required by Sections 50766 and 50767, except that they shall be applicable to sponsors and developments assisted pursuant to this chapter and the requirements of this chapter. (b) A description of, and requirements governing, all social and economic components of the community housing development and the sponsor's affirmative responsibilities with respect to the components. (c) A provision making the covenants and conditions of the agreement binding upon successors in interest of the sponsor. (d) For sponsors other than a governmental agency, a provision limiting the distribution of the sponsor's earnings from the assisted portion of the community housing development, or congregate housing development, in an annual amount no greater than 8 percent of the sponsor's actual investment, excluding unaccrued liabilities of the sponsor, in the assisted portion of the community housing development. The "assisted portion" of a community housing development includes the assisted units, the portion of the common area that is equal to the ratio of floorspace of the assisted units to total units, and if any funds are awarded under this chapter to develop all or any portion of a child care center for the community housing development, the entire child care center. A sponsor shall not be subject to a limitation on distributions received from that portion of the community housing development that is not the assisted portion. That portion of the development which is not assisted shall include the units which are not assisted units, the portion of the common area that is equal in proportion to the ratio of floorspace of the nonassisted units to total units, the child care center, if no funds have been awarded under this chapter for development of the center, and any commercial space which, for the purposes of this chapter, does not include any child care center. (e) Provisions for requiring termination of tenancy upon completion or termination of the tenant's job training program no later than two years following termination of the cash grant received by the tenant under CalWORKs, consistent with the requirements of the local welfare reform plan and CalWORKs. (f) Provisions for grievance hearings and other resident protections which ensure reasonable security of continued occupancy. (g) Provisions to ensure that if an eligible household's income exceeds the standard pursuant to which it was accepted for tenancy, that fact alone shall neither constitute cause for the eviction nor be a violation of the sponsor's loan agreement. (h) Provisions for setting initial rents and rent increases consistent with paragraph (1) of subdivision (c) of Section 50771.1. Prior to the time any rent increase is effective, the sponsor shall notify every affected tenant, in writing, of the availability of informal meetings with the sponsor to review the proposed rent increase. Each tenant, upon request, shall be provided the information submitted to the department pursuant to this subdivision. (i) A requirement that the sponsor submit to the department for review and approval, annual operating budgets and periodic reports, which shall at a minimum include information on the fiscal condition of the rental housing development, the maintenance of the development, and the number of units occupied by eligible households. SEC. 32. Section 50893.9 of the Health and Safety Code is amended to read: 50893.9. The department, in its administration of the program established pursuant to this chapter, shall do all of the following: (a) Ensure that services, including child care, have costs that are based on household income and ability to pay. (b) Ensure that there is an adequate management plan that includes an affirmative marketing plan. (c) Ensure that all of the following apply to cooperatives and limited equity cooperatives: (1) The downpayment for an assisted unit shall not exceed 2.5 percent or the prorated development cost of the unit. (2) Any payment prior to occupancy shall not exceed 10 percent of the income of the household for the prior calendar year. (3) There is a limitation on the rate of appreciation on any assisted unit. SEC. 33. Section 50895 of the Health and Safety Code is repealed. SEC. 34. Section 50895 is added to the Health and Safety Code, to read: 50895. No rule, policy, or standard of general application employed by the department in implementing this chapter shall be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Title 2 of the Government Code. SEC. 35. Section 51451 of the Health and Safety Code is amended to read: 51451. The Homebuyer Down Payment Assistance Program and the Rental Assistance Program are hereby established to provide assistance in the amount of the applicable school facility fee on affordable housing developments. (a) A Homebuyer Down Payment Assistance Program shall provide the following assistance: (1) Downpayment assistance to the purchaser of newly constructed residential structures in a development project in economically distressed areas in the aggregate amount of school facility fees paid pursuant to one or both of Sections 65995.5 and 65995.7 of the Government Code, less the amount that would be required pursuant to subdivision (b) of Section 65995 of the Government Code notwithstanding Sections 65995.5 and 65995.7 of the Government Code, if all of the following conditions are met: (A) The development project is located in a county with an unemployment rate that equals or exceeds 125 percent of the state unemployment rate. (B) Five hundred or more residential structures have been constructed in the county during 1997. (C) A building permit for an eligible residential structure in the development project is issued by the local agency on or after January 1, 1999. (D) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient of the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis. (E) The sales price of the eligible residential structure does not exceed 175 percent of the median sales price of residential structures in the county during the average of the previous five years. (2) Downpayment assistance to the purchaser of any newly constructed residential structure in the development project in the aggregate amount of school facility fees paid pursuant to one, all, or any combination of Sections 65995, 65995.5, and 65995.7 of the Government Code, less the amount that would be required pursuant to subdivision (b) of Section 65995 of the Government Code notwithstanding Sections 65995.5 and 65995.7 of the Government Code, if all of the following conditions are met: (A) The development project is located in the state. (B) The sales price of the eligible residential structure in the development project does not exceed one hundred ten thousand dollars ($110,000). (C) A building permit for an eligible residential structure in the development project is issued by the local agency on or after January 1, 1999. (D) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient of the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis. (3) Downpayment to the purchaser of any newly constructed residential structure in a development project in the aggregate amount of school facility fees paid pursuant to one, all, or any combination of subdivision (b) of Section 65995 and Sections 65995.5 and 65995.7 of the Government Code for the eligible residential structure if all of the following conditions are met: (A) The assistance is provided to a qualified first-time homebuyer pursuant to Section 50068.5. (B) The qualified first-time homebuyer meets the very low or low-income requirements set forth in Sections 50105 and 50079.5, respectively. (C) A building permit for an eligible residential structure in the development project is issued by the local agency on or after January 1, 1999. (D) The eligible residential structure is to be owner occupied for at least five years. If a structure is owner occupied for fewer than five years, the recipient of the assistance shall repay the School Facilities Fee Assistance Fund the amount of the assistance, on a prorated basis. (b) A Rental Assistance Program shall provide assistance to the housing sponsor of a housing development in the aggregate amount of the school facility fees paid pursuant to one, all, or any combination of subdivision (b) of Section 65995 and Sections 65995.5 and Section 65995.7 of the Government Code that meets all of the following conditions: (1) The units are deed restricted to very low income households and are continuously available to or occupied by very low income households at rents that do not exceed those prescribed by Section 50053, except that for the purposes of this subdivision, very low income shall be defined as 30 percent times 30 percent of the median income adjusted for family size appropriate for the unit. (2) The number of dedicated residential units must equal or exceed the number of units supported by the reimbursed school impact fees determined by the average per unit development cost. (3) The dedicated residential units are regulated by an appropriate local or state agency for a minimum of 30 years. (4) A building permit for an eligible residential unit in the development project is issued by the local agency on or after January 1, 1999. SEC. 36. Section 51452 of the Health and Safety Code is amended to read: 51452. (a) The School Facilities Fee Assistance Fund is hereby established in the State Treasury and, notwithstanding Section 13340 of the Government Code, all money in the fund is continuously appropriated to the Department of General Services for the purposes of this chapter. All repayments of disbursed funds pursuant to this chapter or any interest earned from the investment in the Surplus Money Investment Fund or any other moneys accruing to the fund from whatever source shall be returned to the fund and is available for allocation by the California Housing Finance Agency to programs established pursuant to this chapter. (b) The following amounts are hereby appropriated from the General Fund to the School Facilities Fee Assistance Fund for administrative costs and to make payments to purchasers of newly constructed residential structures and housing sponsors of housing developments pursuant to this chapter from that fund by fiscal year as follows: (1) Twenty million dollars ($20,000,000) in the 1998-99 fiscal year. (2) Forty million dollars ($40,000,000) in the 1999-2000 fiscal year. (3) Forty million dollars ($40,000,000) in the 2000-01 fiscal year. (4) Forty million dollars ($40,000,000) in the 2001-02 fiscal year. (5) Twenty million dollars ($20,000,000) in the 2002-03 fiscal year, through December 31, 2002. (c) The funds shall be distributed by fiscal year to each program in proportion to the total amounts available for each program as follows: (1) Twenty-eight million dollars ($28,000,000) shall be available for the program set forth in paragraph (1) of subdivision (a) of Section 51451, except that any funds not expended within 18 months shall be available for programs set forth in paragraphs (2) and (3) of subdivision (a) of Section 51451. (2) Twenty-eight million dollars ($28,000,000) shall be available for the program set forth in paragraph (2) of subdivision (a) of Section 51451. (3) Fifty-two million dollars ($52,000,000) shall be available for the program set forth in paragraph (3) of subdivision (a) of Section 51451. (4) Fifty-two million dollars ($52,000,000) shall be available for the program set forth in subdivision (b) of Section 51451. SEC. 37. Section 51453 of the Health and Safety Code is repealed. SEC. 38. Section 51455 of the Health and Safety Code is amended to read: 51455. Sections 51450, 51451, 51452, 51454, and this section shall remain in effect until January 1, 2003, and as of that date are repealed. SEC. 39. Section 311.1 is added to the Public Utilities Code, to read: 311.1. Notwithstanding any other provision of law, the commission shall not consider or require, in determining qualified bidders for, or in awarding contracts, that any facilities be located within a particular area of the state, or within geographical proximity of any particular area of the state. SEC. 40. Section 19556 of the Revenue and Taxation Code is repealed. SEC. 41. Section 3 of Chapter 328 of the Statutes of 1998 is amended to read: Sec. 3. (a) The intent of the Performance and Results Act of 1993 (Chapter 8 (commencing with Section 11800) of Part 1 of Division 3 of Title 2 of the Government Code) and the State Government Strategic Planning and Performance Review Act (Chapter 8.1 (commencing with Section 11810) of Part 1 of Division 3 of Title 2 of the Government Code) is to improve the delivery of governmental services through the use of strategic planning and performance measurement. Therefore, the Department of Consumer Affairs shall commit itself to achieve improved levels of performance, as specified, by focusing its efforts on enhancing the value of the services it delivers. (b) (1) Notwithstanding any other provision of law, the Director of Consumer Affairs or his or her designee, in lieu of the Director of Finance, is authorized to carry out the provisions of Section 31.00 of the Budget Act as it pertains to the positions funded by the Budget Act. (2) Notwithstanding Section 31.00 of the Budget Act, the Director of Consumer Affairs is not required to notify the Chairperson of the Joint Legislative Budget Committee regarding any position authorization, blanket transfer, or reclassification of positions funded by the Budget Act. (c) Notwithstanding any other provision of law, the Director of Consumer Affairs or his or her designee, in lieu of the Director of Finance, is authorized to carry out the provisions of Section 26.00 of the Budget Act as it pertains to category transfers related to the Budget Act. (d) Notwithstanding any other provision of law, the Director of Consumer Affairs or his or her designee, in lieu of the Director of Finance, is authorized to approve Budget Revision, Standard Form 26, for activities funded by the Budget Act. (e) The Department of Consumer Affairs shall be exempt from Rule 444 of the State Personnel Board, which requires advertising vacant positions when filled by transfer within or between department offices or other agencies, or by training and development assignment. This exemption does not provide an exemption from any of the requirements imposed by Section 19232, 19404, or 19790 of the Government Code. (f) Notwithstanding Sections 2050 to 2057, inclusive, Sections 10115 to 10115.13, inclusive, Sections 10290 to 10382, inclusive, and Sections 12100 to 12121, inclusive, of the Public Contract Code, and Section 14669 and Sections 14740 to 14880, inclusive, of the Government Code, the Director of Consumer Affairs or his or her designee shall have full authority and discretion to execute all contracts, procure all goods and services, negotiate lease agreements for office, warehouse, and other appropriate facilities, and determine appropriate methods to store and retrieve departmental records related to the bureaus, programs, and divisions under the Director of Consumer Affairs' appointing authority. Except as provided in this subdivision, the Director of Consumer Affairs shall use the authority granted in this subdivision to implement alternative approaches, procedures, and methods, in lieu of the guidelines and procedures contained in the State Administrative Manual and in other state-issued guidelines to carry out the provisions of the Public Contract Code and the Government Code cited in this section, for execution of contracts, procurement of all goods and services, negotiate lease agreements for office, warehouse, and other appropriate facilities, and determine appropriate methods to store and retrieve departmental records related to the bureaus, programs, and divisions under the Director of Consumer Affairs' appointing authority. This authority granted by this subdivision shall not affect any of the following: (1) The Department of Consumer Affairs' continued use of the state' s private line voice network (CALNET). (2) The Department of General Services' continued responsibility and authority for the consolidation of the Department of Consumer Affairs' offices in the Sacramento area. (3) The requirement that the Department of Consumer Affairs obtain the written approval of the Secretary of the State and Consumer Services Agency for any leasing of offices that may affect the Los Angeles basin and San Francisco Area Consolidation Plans. (g) Notwithstanding any other provision of law, the Director of Consumer Affairs may prepay vendors when it is a best value to the Department of Consumer Affairs. In the event the Department of Consumer Affairs incurs any losses due to the prepayment of vendors, the Department of Consumer Affairs shall report such losses in the semiannual report required in subdivision (q). (h) Related to the implementation of information technology projects for the bureaus, programs, and divisions under the Director of Consumer Affairs' appointing authority: (1) Notwithstanding Sections 4819.35 to 4819.37, inclusive, of the State Administrative Manual, the Director of Consumer Affairs or his or her designee, is authorized to internally approve all Feasibility Study Reports related to information technology projects whose aggregate total development costs do not exceed one million dollars ($1,000,000), provided the project activity is consistent with the department's Strategic Information Systems Plan and uses existing resources. (2) Notwithstanding Sections 12100 to 12121, inclusive, of the Public Contract Code, the Director of Consumer Affairs or his or her designee, shall have full authority and discretion for the procurement of electronic data processing and telecommunications goods and services that do not exceed one million dollars ($1,000,000) per procurement. (i) Notwithstanding Sections 14850 to 14855, inclusive, of the Government Code, the director, or his or her designee, shall have full authority and discretion to execute contracts and procure printing services, or both, that are timely and cost-beneficial to the bureaus, programs, and divisions under the director's appointing authority. (j) Notwithstanding Section 2807 of the Penal Code, the Director of Consumer Affairs, or his or her designee, shall have full authority to procure goods and services from the private sector, even though these goods and services may be available through the Prison Industries Authority, when in his or her discretion it is more cost-beneficial to the bureaus, programs, and divisions under the Director of Consumer Affairs' appointing authority. (k) Notwithstanding subdivision (a) of Section 948 and Section 965 of the Government Code, the Director of Consumer Affairs or his or her designee, in lieu of the Director of Finance, is authorized to certify funds for the payment of all legal settlements, State Board of Control claims, judgments, and tort claims, for which the Department of Consumer Affairs has sufficient expenditure authority and funds without the need for an augmentation. This provision shall only apply to programs under the Director of Consumer Affairs' appointing authority. (l) Notwithstanding Section 11032 of the Government Code, the Director of Consumer Affairs or his or her designee, may authorize officers and employees of the programs under the Director of Consumer Affairs' appointing authority, to travel outside the state or country without approval from any other agency, and the funds appropriated by the Budget Act may be used for that purpose. (m) Notwithstanding any other provision of law, the Department of Consumer Affairs shall be exempt from Section 12439 of the Government Code regarding the abolition of vacant state positions. (n) All reports to the Legislature required in the sections cited in this section shall be made by the Director of Consumer Affairs in the same form and manner as currently reported by the otherwise appropriate agency. (o) The Legislature finds and declares the following with regard to the Department of Consumer Affairs, and the bureaus and programs within the Department of Consumer Affairs: (1) The traditional budgeting system does not appropriately measure results or outcomes. (2) The Department of Consumer Affairs has drafted and submitted to the Legislature the following essential elements of performance budgeting and strategic planning: (A) A strategic business and information systems plan. (B) Meaningful outcome measures that are the primary focus of management accountability. (C) Performance targets for each of the outcome measures. (p) In connection with the support funding appropriated by the Budget Act and by any other act, for the 1999-2000 fiscal year, the Department of Consumer Affairs, pursuant to this subdivision and subdivision (q), shall continue the performance funding project that holds the department accountable for results rather than process. The Department of Consumer Affairs' obligations under this project in the 1999-2000 fiscal year shall include the following: The Department of Consumer Affairs shall continue to conduct regulatory reviews of the programs under the authority of the Director of Consumer Affairs, to determine whether the regulatory activities of the programs are appropriate and necessary, and whether the programs should be eliminated, modified, or continued. This assessment shall be based on the Department of Consumer Affairs' evaluation of the public benefit of the regulatory activity, the program's success in attaining those benefits, and the data gathered as part of the market condition assessment. (q) (1) In addition to the commitments described in subdivision (p), the Department of Consumer Affairs shall do both of the following: (A) Submit to the Legislature any revisions to its strategic business and information systems plans and performance measures in accordance with the schedule established by the administration for submission of strategic plans. (B) Report semiannually: The Department of Consumer Affairs shall provide an annual report for the previous fiscal year no later than December 31, 1999, and a progress report for the first six months of the current fiscal year no later than April 1, 2000, regarding the status of the implementation of its strategic business and information systems plans, the attainment of its performance targets, and the implementation and impact of the administrative flexibilities provided for the previous fiscal year. The report shall be submitted to the Joint Legislative Budget Committee, the appropriate fiscal committees, and the Department of Finance. (2) The Department of Consumer Affairs shall not modify its strategic business and information systems plans or performance measures sooner than 60 days after notification, in writing, to the Joint Legislative Budget Committee, the appropriate fiscal committees, and the Department of Finance. (r) This section shall remain in effect only until the effective date of the Budget Act of 2000 or June 30, 2000, whichever occurs later. SEC. 42. The Department of Consumer Affairs shall end its participation in the performance-based budgeting pilot project authorized by Chapter 641 of the Statutes of 1993. The Department of Consumer Affairs shall, during the course of the 1999-2000 fiscal year, transition its budgeting and accounting systems to conform with the systems prescribed by the Department of Finance. Nothing in this act shall be construed to prevent the Department of Consumer Affairs from using performance measurement as a management tool in this and subsequent fiscal years. SEC. 43. (a) The intent of the Performance and Results Act of 1993 (Chapter 8 (commencing with Section 11800) of Part 1 of Division 3 of Title 2 of the Government Code) is to improve the delivery of governmental services through the use of strategic planning and performance measurement. Therefore, the Department of General Services (DGS) shall commit itself to achieve improved levels of performance, as specified in this section, by focusing its efforts on enhancing the value of the services it delivers. (b) (1) Under Goal Two of the DGS strategic plan, DGS committed itself to providing the following two categories of services by July 1, 1998: (A) services that the Legislature or Governor requires state agencies to purchase from DGS, and (B) services that state agencies are not required to purchase from DGS, but that DGS can provide on a cost-competitive basis. (2) Notwithstanding Section 7550.5 of the Government Code, DGS shall prepare and submit a report to the Legislature and the Department of Finance on its performance twice per year as follows: on September 1, 1999, for the period January 1, 1999, to June 30, 1999, inclusive; for the 1999-2000 fiscal year, DGS shall report on March 1, 2000, for the period July 1, 1999, to December 31, 1999, inclusive, and on September 1, 2000, for the period January 1, 2000, to June 30, 2000, inclusive. Each report shall provide data on DGS performance as measured against its yearend objectives established annually by the department. The performance evaluation shall measure, as appropriate, customer satisfaction, cycle times, cost price comparisons, efficiency and effectiveness, and financial performance. (c) Notwithstanding any other provision of law, the Director of General Services or his or her designee, in lieu of the Director of Finance, may approve DGS Form 22 and DGS Form 220, including the extension of time to expend transferred funds, the transfer of funds from one work order to another, and the Return of Funds Document. (d) Notwithstanding Chapter 1 (commencing with Section 16301.6) of Part 2 of Division 4 of Title 2 of the Government Code, the Director of General Services or his or her designee may approve "relief from accountability" for debts owed to DGS up to five thousand dollars ($5,000) when DGS determines it cannot collect the debts or when the cost of collection exceeds the amount of the debt. (e) Notwithstanding Section 2807 of the Penal Code, the Director of General Services or his or her designee may procure goods from the private sector even though the goods may be available through the Prison Industry Authority, when in his or her discretion, it is cost-beneficial to do so and if the director or his or her designee continues to include the authority in soliciting quotations for goods. (f) Notwithstanding subdivision (a) of Section 948 and Section 965 of the Government Code, the Director of General Services or his or her designee, in lieu of the Director of Finance, may certify funds for payment of all legal settlements and tort claims for which DGS already has sufficient expenditure authority and funds without the need for augmentation. (g) Notwithstanding Section 14876 of the Government Code, the Director of Personnel Administration or his or her designee shall establish salary and wages for employees of the Office of State Printing pursuant to Sections 3516 to 3517.6, inclusive, of the Government Code. (h) Notwithstanding Chapter 7 (commencing with Section 14850) of Part 5.5 of Division 3 of Title 2 of, or Section 14901 of, the Government Code, no agency is required to use the Office of State Printing for its printing needs and the Office of State Printing may offer printing services to both state and other public agencies, including cities, counties, special districts, community college districts, the California State University, the University of California, and agencies of the United States government. (i) Notwithstanding Section 14851 of the Government Code, the Office of State Printing may accept paid advertisements in state publications or in publications promoting an Office of State Printing supported project or program from vendors who are participating as a partner in that project or program. The Office of State Printing may not accept or publish paid political advertising. Unless otherwise authorized, only the Office of State Printing may print state publications that include paid advertisements. (j) Notwithstanding Section 965.2 of the Government Code, the Director of General Services or his or her designee, in lieu of the Director of Finance, may certify funds for payment of all legal court settlements for projects funded from the Architecture Revolving Fund, if a sufficient fund balance exists in the work order to pay the claim and the payment does not require a budget augmentation to complete the project. (k) Notwithstanding Section 14957 of the Government Code, the Director of General Services or his or her designee, in lieu of the Director of Finance, may approve the deposit of checks directly into the Architecture Revolving Fund. DGS shall notify the Department of Finance within 30 days of the date DGS makes such a deposit. (l) Notwithstanding Section 12439 of the Government Code, DGS is exempt from the provisions that abolish, effective July 1, any positions that were vacant continuously during the period between October 1 and June 30 of the preceding year. (m) Notwithstanding Section 11032 of the Government Code, the Director of General Services or his or her designee may authorize its employees to travel outside the state or country without approval by the Department of Finance. (n) Notwithstanding any other provision of law, the Director of General Services or his or her designee may prepay vendors when it is cost-beneficial to DGS. In the event DGS incurs any losses due to the prepayment of vendors, DGS shall report those losses to the Joint Legislative Budget Committee and to the appropriate fiscal committees of the Legislature. (o) (1) Notwithstanding Sections 8647, 11005, and 11005.1 of the Government Code, DGS may accept gifts and donations of real property without approval by the Director of Finance. DGS shall bear any costs associated with the acceptance of those gifts and donations and the funds used for this purpose. DGS shall not certify the fair market value of any gift or donation of real property without performing its own appraisal. Upon receipt of any gift or donation of real property, DGS shall certify in writing to the Department of Finance all of the following: (A) The gift or donated property will have minimal impact on the operation and maintenance costs and DGS will absorb the costs within its existing budget. (B) The gift or donated property has no evidence or history of environmental hazards or contamination. (C) There are no lawsuits pending concerning the property, and clear title is a condition of the gift or donation. (D) The gift or donation has an estimated fair market value of less than five hundred thousand dollars ($500,000). (E) There are no provisions that will restrict DGS from divesting title to the gift or donated property. (F) There are no structures on the property, or any structures on the property will be razed. (2) If one or more of the criteria listed in this subdivision are not met, DGS shall obtain approval from the Department of Finance to accept the gift or donation of real property. (3) Any gifts and donations that will require future budget change proposals shall be submitted to the Department of Finance for approval. (p) This section shall remain in effect only until the effective date of the Budget Act of 2000 or July 1, 2000, whichever occurs later. SEC. 44. (a) The State Energy Resources Conservation and Development Commission shall conduct a public process to prepare a transition plan report on the transfer of energy efficiency programs from the Public Utilities Commission to the State Energy Resources Conservation and Development Commission, and, notwithstanding Section 7550.5 of the Government Code, submit that report to the Legislature by January 1, 2000. For that purpose, the transition is defined as the period through December 31, 2001, during which utilities will continue as primary program administrators under the oversight of the Public Utilities Commission. The transition plan shall include consideration of all of the following: (1) Issues associated with oversight responsibility, including those associated with the transfer of responsibility from the Public Utilities Commission to the State Energy Resources Conservation and Development Commission. (2) Implementation and sequencing issues associated with the transfer of responsibility for administration of energy efficiency activities from utilities to a new administrative structure. (3) Coordination and synergy between this program and other public goods charge programs such as the Public Interest Energy Research (PIER) program. (4) Program requirements necessary to ensure that current programs apply market transformation principles and result in sustainable, cost-beneficial improvements in California's energy markets. (5) Resources necessary to implement the transition plan. (b) The State Energy Resources Conservation and Development Commission shall conduct a public process to prepare an operational plan report and, notwithstanding Section 7550.5 of the Government Code, submit that report to the Legislature by January 1, 2000. The operational plan report shall recommend a post-transition administrative structure that is designed to achieve efficient and effective program administration. The report shall consider all of the following: (1) The application of market transformation principles to achieve cost-effective energy efficiency and conservation through sustainable, cost-beneficial improvements in California's energy markets. (2) Assessment of energy markets to identify feasible ways of improving market structures, including, but not necessarily limited to, an assessment of California's untapped opportunities to secure cost-effective savings. (3) Programs that result in sustainable improvements in the information environment, market rules, and other aspects of market structures that result in either of the following: (A) Enabling private businesses to innovate and provide energy efficient products and services. (B) Supporting the ability of customers to make more intelligent energy choices. (4) The appropriate roles of other private and public entities providing energy efficiency services, including, but not limited to, designating a public benefit, nonprofit corporation as the program administrator. (5) Whether eligibility for program funds should be expanded to support the ability of electricity consumers to shift electricity usage in response to pricing differences. (6) The appropriate funding levels for energy efficiency and conservation in the post-2001 period and appropriate program oversight in the post-2001 period. (7) Minimizing the role of state agencies in providing administrative and implementation services. (8) Programs in existing residential and nonresidential program areas that reduce consumer energy bills while stimulating the growth of a competitive industry providing cost-effective products and services, such as the Standard Performance Contract program. SEC. 45. Sections 19 to 34, inclusive of this act shall become operative only if an appropriation is made for its purposes in the Budget Act of 1999, or in another statute enacted during the first calendar year of the 1999-2000 Regular Session, and shall be funded exclusively with funds appropriated thereby. SEC. 46. Notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund. SEC. 47. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to make the statutory changes to implement the Budget Act of 1999 at the earliest possible time, it is necessary that this act take effect immediately.