BILL NUMBER: AB 2866 CHAPTERED 07/10/00 CHAPTER 127 FILED WITH SECRETARY OF STATE JULY 10, 2000 PASSED THE ASSEMBLY JUNE 16, 2000 PASSED THE SENATE JUNE 15, 2000 AMENDED IN SENATE JUNE 15, 2000 AMENDED IN ASSEMBLY MAY 25, 2000 INTRODUCED BY Assembly Member Migden (Coauthors: Assembly Members Alquist, Aroner, Cedillo, Gallegos, Hertzberg, Honda, Longville, Reyes, Romero, and Wildman) MARCH 6, 2000 An act to amend Sections 215, 631, 1730, 1734, 1735, and 1742 of the Code of Civil Procedure, to amend Section 14038 of the Corporations Code, to amend Section 17070.70 of the Education Code, to amend Sections 12012.85, 12439, 16429.30, and 53661 of, to amend and add Section 15202 to, to add Section 19134 to, to add Chapter 1.4 (commencing with Section 15363.70) to Part 6.7 of Division 3 of Title 2 of, to add and repeal Section 13968.7 of, and to repeal Sections 16429.34, 16429.36, 16429.38, 16429.40, and 16429.49 of, the Government Code, to amend Sections 51451 and 51452 of the Health and Safety Code, to amend Section 2675.5 of, and to add Sections 3099.5 and 7929.5 to, the Labor Code, to add Section 531 to the Military and Veterans Code, to add Sections 3006 and 5024 to the Penal Code, to add Section 10299 to the Public Contract Code, to add Section 355.1 to the Public Utilities Code, and to add Section 140.3 to the Streets and Highways Code, relating to state government, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. (Approved by Governor July 8, 2000. Filed with Secretary of State July 10, 2000.) I am signing Assembly Bill No. 2866; however, I am concerned about several provisions contained in this measure. First, I am deleting Section 10 of this measure, because it contains an appropriation. This section would authorize the Board of Control to enter into an interagency agreement with the University of California, San Francisco, to establish a victims of crime recovery center, as a pilot project until June 30, 2004, at San Francisco General Hospital; and to establish supplemental mental health rates for eligible victims. By providing for new and expanded uses of a continuously appropriated fund, Section 10 of this bill would make an appropriation. Consistent with my strong support for victims' rights, I sustained a total of $525,000 in the 2000 Budget Act for one-time start-up costs for the victims of crime recovery center. However, I am concerned Section 10 would fund services that are normally not reimbursed and at rates that are twice the current level. The enhanced mental health reimbursement rates, funded by the Restitution Fund, which is continuously appropriated to the Board of Control, could set a potentially costly precedent that could ultimately have a negative impact on the Restitution Fund and the ability to fund services to victims on a statewide basis. I am also deleting Section 36 to conform with this action. Second, I am concerned about provisions included in this measure that would require an assessment of rail transportation in California and recommendations for projects. While I do not object to assessing the potential for greater connectivity of the passenger rail system with other passenger travel modes, improved public safety, and mitigating congestion on rail corridors providing passenger service, I am concerned with the bill's implication that the State should propose projects to support private freight rail capital needs. While I recognize that movement of goods has a strong tie to the state's ability to support commerce, I also recognize that private, for-profit companies that operate freight railroads are substantially capable of funding their own capital and operating needs. I am directing the Department of Transportation to limit its rail recommendations to those which are the proper subject of state funding, prioritizing them in context of the state's other pressing transportation needs. Furthermore, I would support legislation directing the University of California to conduct the private rail assessment. In contrast to the sweeping request for project recommendations in this bill, the Traffic Congestion Relief Plan I proposed contains funding for priority freight rail-related capital projects which will relieve congestion on highways and streets. Funds proposed for the publicly-owned North Coast Rail Authority will restore service thereby reducing the burden on Route 101. Funds proposed for an eastern extension of the Alameda Corridor project are based on the expectation that the freight rail company that participates in the Alameda Corridor project will contribute substantial funding, commensurate with the benefits it will obtain, while government funding is used substantially to reduce the conflicts between rail operations and street and highway traffic. GRAY DAVIS, Governor LEGISLATIVE COUNSEL'S DIGEST AB 2866, Migden. State government. (1) Existing law establishes a system of state funding for trial courts. Existing law establishes the Trial Court Trust Fund for the purpose of funding trial court operations. For purposes of those provisions, court operations are defined to include, among other things, juror expenses of per diem fees and mileage. Existing law also specifies the fees and travel reimbursement to be paid to jurors in civil and criminal cases. This bill would increase the daily fees for jurors beginning July 1, 2000, as specified. Funding for these purposes would be made pursuant to an appropriation of funds in the annual Budget Act. The bill would also set forth the findings and declarations of the Legislature. (2) Existing law specifies that a trial by jury may be waived in civil cases by failure to deposit advance jury fees, as specified, and limits the amount of those fees to not more than the average mileage and fees of 20 jurors for one day. This bill would instead limit advance jury fees required to be deposited pursuant to this provision to a total of $150. (3) Existing law establishes pilot programs to assess the benefits of early mediation of civil cases in 4 superior courts, as specified. This bill would, in addition, require the Judicial Council to establish a pilot program in the Los Angeles Superior Court in 10 departments handling civil cases. These departments would have the authority to make mandatory referrals to mediation, as specified. The court would be responsible for paying the mediator's fees, to the extent specified. The bill would expand the nature of a report to be prepared by the Judicial Council with respect to the pilot programs. The bill would also make related changes. The bill would impose a state-mandated local program by imposing a new program on the court. (4) Existing law provides for the California Small Business Financial Development Loan Guarantee Account and authorizes funds from that account to be paid by the treasurer to a small business development corporation loan guarantee fund. Under existing law, those funds may then be transferred by the California Office of Small Business Development to corporate trust accounts, based on its evaluation of specified performance-based criteria of that corporation. This bill would specify that these performance-based criteria are not applicable to a corporation that has been in existence for 5 years or less and would require the office to specify by regulation the basis for transferring funds from the small business development corporation loan guarantee fund to those corporations. (5) Existing law, the Leroy F. Greene School Facilities Act of 1998 (Greene Act), makes funding available to school districts for, among other things, schoolsite acquisition, construction, and modernization. The Greene Act authorizes the State Allocation Board to determine the eligibility of school districts to receive apportionments, and to apportion funds to eligible school districts under the act. The Greene Act requires that title to all property acquired, constructed, or improved, with funds made available from the act, to be held by the school district to which the board grants the funds. This bill would authorize the board to provide funding, pursuant to the Greene Act, for projects upon property that is leased to a school district as long as the school district's project received approval from the board prior to November 4, 1998. (6) Existing law ratifies specified tribal-state gaming compacts. Existing law also establishes in the State Treasury the Indian Gaming Special Distribution Fund for the receipt and deposit of gaming device license fee moneys received by the state from Indian tribes pursuant to the terms of tribal-state gaming compacts, which shall be available for appropriation by the Legislature for specified regulatory and other purposes. This bill would include within the express purposes of the Indian Gaming Special Distribution Fund disbursements for the purpose of implementing the terms of tribal labor relations ordinances promulgated in accordance with the terms of ratified tribal-state gaming compacts. (7) Existing law requires the Controller to abolish, effective July 1, any state position that was vacant continuously during the period between October 1 and June 30 of the preceding fiscal year. Existing law also requires that positions which were vacant for the last 9 months of a fiscal year because of a hiring freeze in effect during part of all of the 9-month period be abolished unless the Director of Finance is notified of the need for, and approves, continuing these positions. This bill, instead, would require the Controller beginning July 1, 2001, and on each July 1 thereafter, to abolish any state position that was vacant continuously for 6 consecutive monthly pay periods during the period between July 1 and June 30 of the preceding fiscal year. The bill would require positions that were continuously vacant for 6 consecutive monthly pay periods during a fiscal year because of a hiring freeze in effect during part or all of that period to be abolished unless the director is notified of the need for, and approves of, the continuance of the positions. The bill would authorize a state agency to request positions that have been abolished under specified circumstances be reestablished. (8) Under existing law, a victim of a crime may file an application with the State Board of Control for financial, medical, counseling, and other assistance pursuant to specified procedures. This bill would authorize the board until June 30, 2004, to enter into an interagency agreement with the University of California, San Francisco to establish a victims of crime recovery center at the San Francisco General Hospital to demonstrate the effectiveness of providing comprehensive and integrated services to victims of crime. (9) Under existing law, a county that is responsible for the cost of a trial or trials or any hearing of a person for the offense of homicide may apply to the Controller for reimbursement of the costs incurred by a county in excess of the amount of money derived by the county from a tax of 0.0125 of 1% of the full value of property assessed for purposes of taxation within the county. This bill would delay, until January 1, 2005, the use of this formula for determining state reimbursement of counties for homicide trials and hearings. The bill instead would provide for that reimbursement until January 1, 2005, pursuant to several different specified formulas that apply depending upon the size of the population of a county. (10) Existing law provides for various programs within the Trade and Commerce Agency for the development and promotion of the film industry in the state. This bill would enact the Film California First Program, to authorize the agency to pay and reimburse specified film costs incurred by a public agency, as defined, up to $300,000 for any one film. It would create the Film California First Fund in the State Treasury for purposes of the program. It would declare the intent of the Legislature that funding for the program be provided from the General Fund through the annual Budget Act in the amount of $15,000,000 per year for 3 years, commencing with the 2000-01 fiscal year. (11) The Administrative Procedure Act sets forth certain procedures for the adoption, amendment, or repeal of administrative regulations, including emergency regulations. This bill would exempt procedures and guidelines promulgated to clarify and make specific the Film California First Program established pursuant to the bill, and any other film assistance program within the Trade and Commerce Agency, from the requirements of the act for 36 months after the effective date of the bill. It would authorize the agency to adopt emergency regulations concerning the implementation of the program in accordance with the act following the 36-month exemption period. (12) Under existing law, there is the California Unitary Fund in the State Treasury and a Future Infrastructure State Targeted Account and a Local Project Account for Non-Transient Spending in the California Unitary Fund. These funds are required to be used exclusively for infrastructure financing and economic development. Under existing law, the moneys in the California Unitary Fund remain in the fund until appropriated by the Legislature, and 20% of the money deposited in the Future Infrastructure State Targeted Account is required to be available for expenditure only for support of the California Export Finance Program Law, the California Export Promotion and Policy Program, and the Foreign Market Development Export Incentive Program for California Agriculture Act. Existing law requires proposed appropriations from the fund to be summarized in the Governor's Budget for each fiscal year bearing the caption "California Unitary Infrastructure and Economic Development Program" and contain a separate description of each program for which an appropriation is made. Under existing law, the Secretary of the Business, Transportation and Housing Agency is responsible for annually recommending to the Governor, for inclusion in the Budget Bill, which programs shall be supported by the California Unitary Fund. This bill would repeal these provisions, abolish the California Unitary Fund, and transfer assets and liabilities of the fund to the General Fund. This bill would also require that on and after January 1, 2001, all money that would have been deposited in the Unitary Fund be instead deposited in the General Fund. (13) The California Constitution establishes the civil service system, which includes every officer and employee of the state, subject to specified exemptions. Statutory law permits the state to enter into contracts for personal services to achieve cost savings when specified requirements are met. This bill would require a state agency that enters into a personal services contract for certain types of workers to include provisions for employee benefits that are valued at least 85% of the state employer cost of providing comparable benefits to state employees performing similar duties. The types of workers covered by this requirement include persons that provide janitorial and housekeeping services, custodians, food service workers, laundry workers, window cleaners, and security guards. (14) Existing law requires the State Treasurer to act as Administrator of Local Agency Security and to be responsible for the administration of specified statutes governing the deposit and investment of local agency funds and related matters. This bill would transfer this authority to the Commissioner of Financial Institutions. (15) Existing law establishes the Homebuyer Down Payment Assistance Program and the Rental Assistance Program, administered by the California Housing Finance Agency pursuant to a contract with the Department of General Services, to provide assistance in the amount of the applicable school facility fee on affordable housing developments. In certain instances, the downpayment assistance is limited to residential structures with a sales price that does not exceed $110,000. In other instances, the qualified first-time homebuyer is required to meet specified very low or low-income requirements. This bill would increase the $110,000 limit on the sales price of residential structures eligible for that downpayment assistance to $130,000, and would require that amount to be increased or decreased annually, according to a specified measure of the median sales price of new homes. The bill would require those qualified first-time homebuyers to meet specified moderate income requirements, instead of existing requirements pertaining to very low or low-income persons. (16) Existing law, for the purposes of the Homebuyer Down Payment Assistance Program and the Rental Assistance Program, establishes the School Facilities Fee Assistance Fund, which is continuously appropriated to the Department of General Services. Existing law specifies that those funds not expended for a specified homebuyer downpayment assistance program within 18 months shall be available for other specified homebuyer downpayment assistance programs. This bill would provide that those funds, if not expended within 18 months of their appropriation and availability, shall be available for other specified homebuyer downpayment assistance programs. The bill would make an appropriation by authorizing the expenditure of funds in the School Facilities Fee Assistance Fund for additional purposes. (17) Existing law requires every person engaged in the business of garment manufacturing, as defined, to register with the Labor Commissioner and to pay an initial registration fee and an annual renewal fee. Existing law provides that the commissioner shall deposit $75 of each registrant's annual registration fee into a separate account to be disbursed only to persons damaged by failure of a garment manufacturer, jobber, contractor, or subcontractor to pay wages and benefits. The remainder of the annual registration fee not deposited into the special account is applied to costs in implementing the registration requirements. This bill would revise these provisions to provide for the deposit of registration fees not allocated to the special account in a subaccount. In addition to implementing the registration requirements, fees deposited in the subaccount would be used to cover costs incurred by the Labor Commissioner in reviewing claims by employees to recover unpaid wages. Moneys in the subaccount would be available for expenditure upon appropriation by the Legislature. (18) Existing law requires the Division of Apprenticeship Standards to set fees necessary to establish minimum standards for the competency and training of electricians. This bill would create the Electrician Certification Fund as a special account in the State Treasury for deposit of fees collected to fund the Division of Apprenticeship Standards program. Moneys in that fund would be available for expenditure upon appropriation by the Legislature. (19) Existing law permits the Division of Occupational Safety and Health to fix and collect fees necessary to administer the Permanent Amusement Ride Safety Inspection Program, a state system for the inspection of permanent amusement rides. This bill would create the Permanent Amusement Ride Inspection Fund, a special account for deposit of fees collected to fund the Permanent Amusement Ride Safety Inspection Program. Moneys in that fund would be available for expenditure upon appropriation by the Legislature. (20) Existing law provides that the Adjutant General is the head of the Military Department. This bill would authorize the Adjutant General to enter into an agreement with the City of Oakland and a school district to establish the Oakland Military Institute, a nonresidential college preparatory institution. The bill would appropriate $1.3 million to the Military Department for this purpose. (21) Under existing law, the Department of Corrections provides specified treatment programs for inmates and parolees convicted of committing sex offenses. This bill would provide, in addition, that the Department of Corrections may require parolees participating in relapse prevention treatment programs or receiving medication treatments intended to prevent them from committing sex offenses to pay some or all of the costs associated with the treatment, subject to the person's ability to pay, as defined. (22) Existing law generally regulates the incarceration of prisoners. This bill would authorize the Director of the Department of Corrections to adopt regulations relating to rebates for pharmaceuticals, as specified, and to enter into interagency agreements relating to purchasing pharmaceuticals. The bill would also require the Bureau of State Audits to report to the Legislature and the Governor, not later than January 10, 2002, specified findings relating to pharmaceutical and medical supply procurement for offenders in state custody, as specified. The bill would also express certain findings and declarations of the Legislature. (23) Under existing law, the Department of General Services is authorized to establish the California Multiple Awards Schedule program, which permits state agencies to purchase information technology services from vendors that hold federal contracts. This bill would authorize the Director of General Services to enter a variety of types of contracts for information technology services, including using master agreements, multiple award schedules, cooperative agreements, and other types of agreements that enhance the state's buying power. The director would also be authorized to provide the procurement services of the department to school districts, which would be authorized to use the department's agreements without competitive bidding. (24) The existing restructuring of the electrical services industry provides for the authorization of direct transactions between electricity suppliers and end use customers and for the creation of an Independent System Operator and a Power Exchange. This bill would authorize the Public Utilities Commission to investigate issues relating to multiple qualified exchanges. The bill would require the commission to prepare and submit findings and recommendations to the Legislature if it determines that allowing electrical corporations to purchase from multiple qualified exchanges is in the public interest. The bill would prohibit the commission, prior to June 1,2001, from implementing the part of any decision authorizing electrical corporations to purchase from exchanges other than the Power Exchange. The bill would also prohibit the implementation of the portion of certain commission decisions that authorizes electrical corporations to purchase from multiple qualified exchanges. (25) Existing law authorizes the Department of Transportation to establish and maintain shops for the construction, repair, and servicing of any equipment owned or used by the department. The department is authorized to purchase and supply any materials and parts, and furnish any labor, that is necessary in the construction, repair, and servicing of equipment for other state departments. The other state departments receiving those services are required to reimburse the department for the cost of the materials, parts, and labor, including overhead charges. This bill would require the department, with the approval of the Department of Finance, to set rates for mobile equipment services, as defined. The bill would require the department to review its rates for those services on an annual basis and, upon approval by the Department of Finance, to publish a rate schedule on or before April 30 of each year. The bill would require the department to collect mobile equipment services cost recovery, as defined. The bill would create the Equipment Service Fund in the State Treasury and would continuously appropriate the money in the fund to the department to pay for mobile equipment services. The bill would require that the net proceeds from mobile equipment services cost recovery be deposited in the fund. In addition, the bill would authorize any moneys appropriated to the department under the annual Budget Act, or under any other act, for the use of existing mobile equipment or for the purchase of that equipment, and any moneys transferred to the department from any account within the State Transportation Fund for those purposes, to be deposited in the fund. The bill would authorize refunds to programs that were assessed mobile equipment service charges during a fiscal year, under certain circumstances. (26) 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. 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 cost-beneficial to the department, to accept gifts and donations of real property without approval by the Director of Finance, to authorize employees of the department of travel outside the state or country without approval of the Department of Finance, and to exempt the department from a provision of law that automatically abolishes positions in state civil service that are vacant continuously for a specified period of time. These provisions of existing law remain in effect until the effective date of the Budget Act of 2000 or June 30, 2000, whichever occurs later. This bill would reenact provisions relating to administrative functions that the Department of General Services is authorized to perform, but would not include the functions described above. The bill would set forth the conditions pursuant to which the director of the department, notwithstanding existing statutes and regulations, is required or authorized, among other things, to procure goods from the private sector even though the goods may be available through the Prison Industry Authority, certify funds for the payment of specified legal settlements and tort claims, and approve specified departmental forms in lieu of the Director of Finance. This bill would specify that these provisions shall remain in effect only until the effective date of the Budget Act of 2001 or June 30, 2001, whichever occurs later. (27) Under existing law, the Department of Veterans Affairs is responsible for the administration and physical maintenance of the Veterans' Home of California Yountville. This bill would require the department to renovate the Lincoln Theater at the veterans' home and would specify the scope of the renovation. The renovation would be managed by the Department of General Services. (28) Existing law authorizes the Department of Transportation to plan, design, construct, operate, and maintain those transportation systems that the Legislature makes the responsibility of the department. This bill would require the department, in consultation with the Office of Planning and Research, to conduct a statewide rail transportation assessment, as specified, including a report that would address certain issues and would be submitted to the Legislature on or before January 1, 2002. (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) This bill would declare that it is to take effect immediately as an urgency statute. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 215 of the Code of Civil Procedure is amended to read: 215. (a) Beginning July 1, 2000, the fee for jurors in the superior and municipal courts, in civil and criminal cases, is fifteen dollars ($15) a day for each day's attendance as a juror after the first day. (b) Unless a higher rate of mileage is otherwise provided by statute or by county or city and county ordinance, jurors in the superior and municipal courts shall be reimbursed for mileage at the rate of fifteen cents ($0.15) per mile for each mile actually traveled in attending court as a juror, in going only. SEC. 2. Section 631 of the Code of Civil Procedure is amended to read: 631. (a) Trial by jury may be waived by the several parties to an issue of fact in any of the following ways: (1) By failing to appear at the trial. (2) By written consent filed with the clerk or judge. (3) By oral consent, in open court, entered in the minutes or docket. (4) By failing to announce that a jury is required, at the time the cause is first set for trial, if it is set upon notice or stipulation, or within five days after notice of setting if it is set without notice or stipulation. (5) By failing to deposit with the clerk, or judge, advance jury fees 25 days prior to the date set for trial, except in unlawful detainer actions where the fees shall be deposited at least five days prior to the date set for trial, or as provided by subdivision (b). An advance jury fee deposited pursuant to this paragraph may not exceed a total of one hundred fifty dollars ($150). (6) By failing to deposit with the clerk or judge, promptly after the impanelment of the jury, a sum equal to the mileage or transportation (if allowed by law) of the jury accrued up to that time. (7) By failing to deposit with the clerk or judge, at the beginning of the second and each succeeding day's session a sum equal to one day's fees of the jury, and the mileage or transportation, if any. (b) In a superior court action, other than a limited civil case, if a jury is demanded by either party in the memorandum to set the cause for trial and the party, prior to trial, by announcement or by operation of law, waives a trial by jury, then all adverse parties shall have five days following the receipt of notice of the waiver to file and serve a demand for a trial by jury and to deposit any advance jury fees that are then due. (c) When the party who has demanded trial by jury either (1) waives the trial upon or after the assignment for trial to a specific department of the court, or upon or after the commencement of the trial, or (2) fails to deposit the fees as provided in paragraph (6) of subdivision (a), trial by jury shall be waived by the other party by either failing promptly to demand trial by jury before the judge in whose department the waiver, other than for the failure to deposit the fees, was made, or by failing promptly to deposit the fees described in paragraph (6) of subdivision (a). (d) The court may, in its discretion upon just terms, allow a trial by jury although there may have been a waiver of a trial by jury. SEC. 3. Section 1730 of the Code of Civil Procedure is amended to read: 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. (c) In addition to the pilot programs established under subdivision (a), the Judicial Council shall establish a pilot program in the Los Angeles Superior Court in 10 departments handling civil cases. These departments shall have the authority to make mandatory referrals to mediation, pursuant to this title. The court shall be responsible for paying the mediator's fees, to the extent provided in Section 1735. SEC. 4. Section 1734 of the Code of Civil Procedure is amended to read: 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 Los Angeles Superior Court and the other 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. SEC. 5. Section 1735 of the Code of Civil Procedure is amended to read: 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. 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) 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 (d). 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, the parties shall not be required to pay a fee for the mediator's services. (d) 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. SEC. 6. Section 1742 of the Code of Civil Procedure is amended to read: 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 report shall also include a comparison of court ordered mediation, as provided in Section 1730, to voluntary mediation in Los Angeles County. 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. SEC. 6.5. Section 14038 of the Corporations Code is amended to read: 14038. (a) The funds in the loan account shall be paid out to a small business development corporation loan guarantee fund by the Treasurer on warrants drawn by the Controller and requisitioned by the office, pursuant to the purposes of this chapter. The office may transfer funds allocated to the corporate fund to accounts, established solely to receive the funds, in lending institutions designated by that corporation. The lending institutions so designated shall be approved by the state for the receipt of state deposits. Interest earned on the accounts in lending institutions may be utilized by the corporations pursuant to the purposes of this chapter. (b) Except as specified in subdivision (c), the office shall reallocate and transfer money to corporate trust accounts based on performance-based criteria. The criteria shall include, but not be limited to, the following: (1) The default record of the corporation. (2) The number and amount of loans guaranteed by a corporation. (3) The number and amount of loans made by a corporation if state funds were used to make those loans. (4) The number and amount of surety bonds guaranteed by a corporation. Any decision made by the office pursuant to this subdivision may be appealed to the board within 15 days of notice of the proposed action. The board may repeal or modify any reallocation and transfer decisions made by the office. (c) The criteria specified in subdivision (b) shall not apply to a corporation that has been in existence for five years or less. The office shall develop regulations specifying the basis for transferring account funds to those corporations that have been in existence for five years or less. SEC. 7. Section 17070.70 of the Education Code is amended to read: 17070.70. (a) Title, including, but not limited to, any leasehold interest as set forth in subdivision (c), to all property acquired, constructed, or improved with funds made available under this chapter shall be held by the school district to which the board grants the funds. (b) The applicant school district shall comply with all laws pertaining to the construction, reconstruction, or alteration of, or addition to, school buildings. (c) Notwithstanding Section 17009.5, construction or modernization funds made available pursuant to this chapter may be expended upon property that is leased to the applicant school district only if the project qualified for and received approval by the board, prior to November 4, 1998, pursuant to Article 4 (commencing with Section 17055), of Chapter 12. SEC. 8. Section 12012.85 of the Government Code is amended to read: 12012.85. There is hereby created in the State Treasury a fund called the "Indian Gaming Special Distribution Fund" for the receipt and deposit of moneys received by the state from Indian tribes pursuant to the terms of tribal-state gaming compacts. These moneys shall be available for appropriation by the Legislature for the following purposes: (a) Grants, including any administrative costs, for programs designed to address gambling addiction. (b) Grants, including any administrative costs, for the support of state and local government agencies impacted by tribal government gaming. (c) Compensation for regulatory costs incurred by the State Gaming Agency and the Department of Justice in connection with the implementation and administration of tribal-state gaming compacts. (d) Disbursements for the purpose of implementing the terms of tribal labor relations ordinances promulgated in accordance with the terms of tribal-state gaming compacts ratified pursuant to Chapter 874 of the Statutes of 1999. No more than 10 percent of the funds appropriated in the Budget Act of 2000 for implementation of tribal labor relations ordinances promulgated in accordance with those compacts shall be expended in the selection of the Tribal Labor Panel. The Department of Personnel Administration shall consult with and seek input from the parties prior to any expenditure for purposes of selecting the Tribal Labor Panel. Other than the cost of selecting the Tribal Labor Panel, there shall be no further disbursements until the Tribal Labor Panel, which is selected by mutual agreement of the parties, is in place. (e) Any other purpose specified by law. SEC. 9. Section 12439 of the Government Code is amended to read: 12439. (a) Beginning July 1, 2001, and on each July 1 thereafter, the Controller shall abolish any state position that was vacant continuously for six consecutive monthly pay periods during the period between July 1 and June 30 of the preceding fiscal year. Those positions that were continuously vacant for six consecutive monthly pay periods during a fiscal year because of a hiring freeze in effect during part or all of the period shall also be abolished unless the need for continuing these positions is provided in written notice to, and approval is granted by, the Director of Finance. (b) If late enactment of the annual Budget Act contributes to the abolishment of any proposed new position or positions, or if significant recruitment problems for hard-to-fill classifications, as determined by the Department of Finance, contribute to the abolishment of positions, a state agency may submit a written request for reestablishment of the positions to the Director of Finance. The positions may be reestablished upon approval granted by the Director of Finance. (c) The only exceptions to this abolishment are those positions exempt from civil service or those instructional and instruction-related positions authorized for the California State University. No money appropriated by the subsequent Budget Act shall be used to pay the salary of any otherwise authorized state position that is abolished pursuant to this section. (d) The Controller, no later than the following August 1 of each succeeding fiscal year, shall notify the Department of Finance in writing of any authorized state position that was vacant continuously during that period. (e) The Controller, no later than the following December 1 of each succeeding fiscal year, shall furnish the Joint Legislative Budget Committee a report on all positions as of July 1 that were unfilled continuously for six consecutive monthly pay periods during the period between July 1 and June 30 of the preceding fiscal year. SEC. 10. Section 13968.7 is added to the Government Code, to read: 13968.7. (a) The State Board of Control may enter into an interagency agreement with the University of California, San Francisco to establish a victims of crime recovery center at the San Francisco General Hospital to demonstrate the effectiveness of providing comprehensive and integrated services to victims of crime, subject to this article and conditions set forth by the State Board of Control. Notwithstanding subdivision (j) of Section 13965, the board may establish supplemental mental health rates for eligible victims under this article through the victims of crime recovery center. The interagency agreement between the board and the university shall set forth performance measures to evaluate annually the effectiveness of the victims of crime recovery center in providing treatment. (b) This section shall not apply to the University of California unless the Regents of the University of California, by appropriate resolution, make this section applicable. (c) This section shall become inoperative on June 30, 2004, and as of January 1, 2005, is repealed, unless a later enacted statute that is enacted before January 1, 2005, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 11. Section 15202 of the Government Code is amended to read: 15202. A county which is responsible for the cost of a trial or trials or any hearing of a person for the offense of homicide may apply to the Controller for reimbursement of the costs incurred by the county in excess of the amount of money derived by the county from a tax of 0.0125 of 1 percent of the full value of property assessed for purposes of taxation within the county. The Controller shall not reimburse any county for costs that exceed the State Board of Control's standards for travel and per diem expenses. The Controller may reimburse extraordinary costs in unusual cases if the county provides sufficient justification of the need for these expenditures. Nothing in this section shall permit the reimbursement of costs for travel in excess of 1,000 miles on any single round trip, without the prior approval of the Attorney General. This section shall become operative on January 1, 2005. SEC. 12. Section 15202 is added to the Government Code, to read: 15202. (a) A county with a population of 300,000 or less, at the time of the 1980 decennial census, that is responsible for the cost of a trial or trials or any hearing of a person for the offense of homicide may apply to the Controller for reimbursement of 90 percent of the costs incurred by the county for each homicide trial or hearing, without regard to fiscal years, in excess of the amount of money derived by the county from a tax of 0.00625 of 1 percent of the full value of property assessed for purposes of taxation within the county. (b) (1) A county with a population of 200,000 or less, as of January 1, 1990, that is responsible for the cost of two or more trials or hearings within a fiscal year of a person or persons for the offense of homicide may apply to the Controller for reimbursement of 90 percent of the costs incurred in a fiscal year by the county for the conduct of the first trial within a fiscal year, and 85 percent of the costs incurred in a fiscal year by the county for the conduct of any and all subsequent trials or hearings in excess of the amount of money derived by the county from a tax of 0.00625 of 1 percent of the full value of property assessed for purposes of taxation within the county. (2) A county with a population of 200,000 or less, as of January 1, 1990, that, within a fiscal year, is reimbursed for costs incurred by the county for the conduct of only one trial or hearing pursuant to subdivision (a) shall be reimbursed for that one trial or hearing in subsequent fiscal years for costs incurred in those subsequent fiscal years without again being required to expend county funds equal to 0.00625 of 1 percent of the full value of property assessed for purposes of taxation within the county, so long as all reimbursements to the county under this paragraph are for only that one trial or hearing. For purposes of this subdivision, in determining the costs of a homicide trial, trials, hearing, or hearings, the costs shall include, all pretrial, trial, and posttrial costs incurred in connection with the investigation, prosecution, and defense of a homicide case or cases within a fiscal year, including, but not limited to, the costs incurred by the district attorney, sheriff, public defender, and witnesses, that were reasonably required by the court and participants in the case or cases, and other extraordinary costs associated with the investigation in homicide cases. (c) A county with a population exceeding 300,000 at the time of the 1980 decennial census that is responsible for the cost of a trial or trials or any hearing of a person for the offense of homicide may apply to the Controller for reimbursement of 80 percent of the costs incurred by the county in excess of the amount of money derived by the county from a tax of 0.00625 of 1 percent, and not in excess of the amount of money derived from a tax of 0.0125 of 1 percent, and for reimbursement of 100 percent of the costs incurred in excess of the amount of money derived from a tax of 0.0125 percent, of the full value of property assessed for purposes of taxation within the county. (d) A county that is eligible for reimbursement under subdivision (a), (b), or (c) shall be reimbursed for the total actual costs incurred for a homicide trial in excess of the amount of money derived by the county from a tax of 0.0125 of 1 percent of the full value of property assessed for purposes of taxation within the county, when the cost of a trial, as defined in subdivision (a), (b), or (c), exceeds 0.0125 of 1 percent of the full value of property assessed for purposes of taxation within the county. (e) The Controller shall not reimburse any county for costs that exceed the standards for travel and per diem expenses set forth in Sections 700 to 715, inclusive, and Section 718 of Title 2 of the California Code of Regulations. The Controller may reimburse extraordinary costs in unusual cases if the county provides sufficient justification of the need for these expenditures. Nothing in this section shall permit the reimbursement of costs for travel in excess of 1,000 miles on any single round trip, without the prior approval of the Attorney General. (f) The Legislature recognizes that the conduct of trials for persons accused of homicide should not be hampered or delayed because of a lack of funds available to the counties for that purpose. While this section is intended to provide an equitable basis for determining the allocation to the state of the costs of homicide trials in any particular county, the rising costs of those trials necessitate an objective study to assure reasonable financial restraints and incentives for cost effectiveness that do not place an unreasonable burden on the treasury of the smaller counties. (g) This section shall remain operative only until January 1, 2005, and as of that date is repealed. SEC. 13. Chapter 1.4 (commencing with Section 15363.70) is added to Part 6.7 of Division 3 of Title 2 of the Government Code, to read: CHAPTER 1.4. FILM CALIFORNIA FIRST PROGRAM 15363.70. This chapter shall be known and may be cited as the Film California First Program. 15363.71. (a) The Legislature finds and declares as follows: (1) The entertainment industry is one of California's leading industries in terms of employment and tax revenue. (2) While film, television, and commercial production in California has expanded over the years, other states and countries actively compete for California production business. It is generally acknowledged that certain segments of the industry, mainly film and television production, are especially hard hit in California. The Legislature finds that this is due to assertive efforts of other states and countries, offering various incentives for filming outside of California. As a result of increased marketing efforts by other states and countries, unemployment in certain film industry sectors and a reduction of film business has occurred within California. (3) Recognizing the vital role the entertainment industry plays in California's economy, legislation enacted in 1985 created the California Film Commission within the Trade and Commerce Agency to facilitate, retain, and attract filming in California. (4) In order to stop the decline of California film production, it is necessary and appropriate to assist in the underwriting of actual costs incurred by production companies to film in California and to provide opportunities for production companies and other film industry companies to lease property owned by the State of California at below market rates. (5) Providing the funds designated under this program, and leasing property owned by the State of California at below market rates is in the public interest and serves a public purpose, and providing incentives to production companies and other film industry companies will promote the prosperity, health, safety, and welfare of the citizens of the State of California. (b) It is the intent of the Legislature that funding for the program be provided from the General Fund through the annual Budget Act in the amount of fifteen million dollars ($15,000,000) per year for three years, commencing with the 2000-01 fiscal year. 15363.72. For purposes of this chapter, the following meanings shall apply: (a) "Agency" means the Trade and Commerce Agency, which includes the California Film Commission. (b) "Film" means any commercial production for motion picture, television, commercial, or still photography. (c) "Film costs" means the usual and customary charges by a public agency connected with the production of a film, in any of the following categories: (1) State employee costs. (2) Federal employee costs. (3) Federal, state, University of California, and California State University permits and rental costs. (4) Local public entity employee costs for fire services and nonpolice public safety. (d) "Fund" means the Film California First Fund, established pursuant to Section 15363.74. (e) "Production company" means a company, partnership, or corporation, engaged in the production of film. (f) "Program" means the Film California First Program established pursuant to this chapter. (g) "Public agency" means any of the following: (1) The State of California, and any of its agencies, departments, boards, or commissions. (2) The federal government, and any of its agencies, departments, boards, or commissions. (3) The University of California. (4) The California State University. (5) Local public entities. (6) Any nonprofit corporation acting as an agent for the recovery of costs incurred by any of the entities listed in this subdivision. 15363.73. (a) The agency may pay and reimburse the film costs incurred by a public agency, subject to audit. Payment may be made either directly to the public agency or to the production company that has paid the public agency costs. The agency shall only reimburse actual costs incurred and may not reimburse for duplicative costs. All requests for payment of film costs shall be accompanied by an invoice from the public entity for the agency's review, at its discretion. (b) Notwithstanding any other provision of law, the Controller shall pay any program invoice received from the agency that contains documentation detailing the film costs, and if the party requesting payment or reimbursement is a public agency, a certification that the invoice is not duplicative cost recovery, and an agreement by the public agency that the agency may audit the public agency for invoice compliance with the program requirements. (c) Not more than three hundred thousand dollars ($300,000) shall be expended to pay or reimburse costs incurred on any one film. 15363.74. (a) The Film California First Fund is hereby established in the State Treasury. (b) The following moneys shall be paid into the fund: (1) Any moneys appropriated and made available by the Legislature for the purposes of this chapter. (2) Any other moneys that may be made available to the agency for the purpose of this chapter from any other source, including the return from investments of moneys by the Treasurer. 15363.75. Procedures and guidelines promulgated to clarify and make specific provisions of the program established pursuant to this chapter, or of any other film assistance program within the agency, shall be exempt from the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 for a period of 36 months after the effective date of this chapter. Following the 36-month exemption, the agency may adopt regulations concerning the implementation of this chapter as emergency regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1. The adoption of these regulations is an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare within the meaning of subdivision (b) of Section 11346.1. Notwithstanding subdivision (e) of Section 11346.1, the regulations shall not remain in effect for more than 180 days unless the agency complies with all provisions of Chapter 3.5 (commencing with Section 11340) of Part 1, as required by subdivision (e) of Section 11346.1. SEC. 14. Section 16429.30 of the Government Code is amended to read: 16429.30. The California Unitary Fund is hereby abolished. Any assets or liability of that fund is transferred to the General Fund. On and after January 1, 2001, all money that would have been deposited in the fund pursuant to any provision of law shall instead be deposited in the General Fund. SEC. 15. Section 16429.34 of the Government Code is repealed. SEC. 16. Section 16429.36 of the Government Code is repealed. SEC. 17. Section 16429.38 of the Government Code is repealed. SEC. 18. Section 16429.40 of the Government Code is repealed. SEC. 19. Section 16429.49 of the Government Code is repealed. SEC. 20. Section 19134 is added to the Government Code, to read: 19134. (a) Personal services contracts entered into by a state agency in accordance with subdivision (a) of Section 19130 for persons providing janitorial and housekeeping services, custodians, food service workers, laundry workers, window cleaners, and security guard services shall include provisions for employee benefits that are valued at least 85 percent of the state employer cost of comparable benefits provided to state employees for performing similar duties. (b) For purposes of this section, "benefits" includes "health, dental, vision, and similar group insurance benefits." (c) The Department of Personnel Administration shall determine annually the state employer benefit costs for workers covered under subdivision (a). (d) This section applies to all contracts exceeding 90 days. SEC. 21. Section 53661 of the Government Code is amended to read: 53661. (a) The Commissioner of Financial Institutions shall act as Administrator of Local Agency Security and shall be responsible for the administration of Sections 53638, 53651, 53651.2, 53651.4, 53651.6, 53652, 53654, 53655, 53656, 53657, 53658, 53659, 53660, 53661, 53663, 53664, 53665, 53666, and 53667. (b) The administrator shall have the powers necessary or convenient to administer and enforce the sections specified in subdivision (a). (c) (1) The administrator shall issue regulations consistent with law as the administrator may deem necessary or advisable in executing the powers, duties, and responsibilities assigned by this article. The regulations may include regulations prescribing standards for the valuation, marketability, and liquidity of the eligible securities of the class described in subdivision (m) of Section 53651, regulations prescribing procedures and documentation for adding, withdrawing, substituting, and holding pooled securities, and regulations prescribing the form, content, and execution of any application, report, or other document called for in any of the sections specified in subdivision (a) or in any regulation or order issued under any of those sections. (2) The administrator, for good cause, may waive any provision of any regulation adopted pursuant to paragraph (1) or any order issued under this article, where the provision is not necessary in the public interest. (d) The administrator may enter into any contracts or agreements as may be necessary, including joint underwriting agreements, to sell or liquidate eligible securities securing local agency deposits in the event of the failure of the depository or if the depository fails to pay all or part of the deposits of a local agency. (e) The administrator shall require from every depository a report certified by the agent of depository listing all securities, and the market value thereof, which are securing local agency deposits together with the total deposits then secured by the pool, to determine whether there is compliance with Section 53652. These reports may be required whenever deemed necessary by the administrator, but shall be required at least four times each year at the times designated by the Comptroller of the Currency for reports from national banking associations. These reports shall be filed in the office of the administrator by the depository within 20 business days of the date the administrator calls for the report. (f) The administrator may have access to reports of examination made by the Comptroller of the Currency insofar as the reports relate to national banking association trust department activities which are subject to this article. (g) (1) The administrator shall require the immediate substitution of an eligible security, where the substitution is necessary for compliance with Section 53652, if (i) the administrator determines that a security listed in Section 53651 is not qualified to secure public deposits, or (ii) a treasurer, who has deposits secured by the securities pool, provides written notice to the administrator and the administrator confirms that a security in the pool is not qualified to secure public deposits. (2) The failure of a depository to substitute securities, where the administrator has required the substitution, shall be reported by the administrator promptly to those treasurers having money on deposit in that depository and, in addition, shall be reported as follows: (A) When that depository is a national bank, to the Comptroller of the Currency of the United States. (B) When that depository is a state bank, to the Commissioner of Financial Institutions. (C) When that depository is a federal association, to the Office of Thrift Supervision. (D) When that depository is a savings association, to the Commissioner of Financial Institutions. (E) When that depository is a federal credit union, to the National Credit Union Administration. (F) When that depository is a state credit union or a federally insured industrial loan company, to the Commissioner of Financial Institutions. (h) The administrator may require from each treasurer a registration report and at appropriate times a report stating the amount and location of each deposit together with other information deemed necessary by the administrator for effective operation of this article. The facts recited in any report from a treasurer to the administrator are conclusively presumed to be true for the single purpose of the administrator fulfilling responsibilities assigned to him or her by this article and for no other purpose. (i) (1) If, after notice and opportunity for hearing, the administrator finds that any depository or agent of depository has violated or is violating, or that there is reasonable cause to believe that any depository or agent of depository is about to violate, any of the sections specified in subdivision (a) or any regulation or order issued under any of those sections, the administrator may order the depository or agent of depository to cease and desist from the violation or may by order suspend or revoke the authorization of the agent of depository. The order may require the depository or agent of depository to take affirmative action to correct any condition resulting from the violation. (2) (A) If the administrator makes any of the findings set forth in paragraph (1) with respect to any depository or agent of depository and, in addition, finds that the violation or the continuation of the violation is likely to seriously prejudice the interests of treasurers, the administrator may order the depository or agent of depository to cease and desist from the violation or may suspend or revoke the authorization of the agent of depository. The order may require the depository or agent of depository to take affirmative action to correct any condition resulting from the violation. (B) Within five business days after an order is issued under subparagraph (A), the depository or agent of depository may file with the administrator an application for a hearing on the order. The administrator shall schedule a hearing at least 30 days, but not more than 40 days, after receipt of an application for a hearing or within a shorter or longer period of time agreed to by a depository or an agent of depository. If the administrator fails to schedule the hearing within the specified or agreed to time period, the order shall be deemed rescinded. Within 30 days after the hearing, the administrator shall affirm, modify, or rescind the order; otherwise, the order shall be deemed rescinded. The right of a depository or agent of depository to which an order is issued under subparagraph (A) to petition for judicial review of the order shall not be affected by the failure of the depository or agent of depository to apply to the administrator for a hearing on the order pursuant to this subparagraph. (3) Whenever the administrator issues a cease and desist order under paragraph (1) or (2), the administrator may in the order restrict the right of the depository to withdraw securities from a security pool; and, in that event, both the depository to which the order is directed and the agent of depository which holds the security pool shall comply with the restriction. (4) In case the administrator issues an order under paragraph (1) or (2) suspending or revoking the authorization of an agent of depository, the administrator may order the agent of depository at its own expense to transfer all pooled securities held by it to such agent of depository as the administrator may designate in the order. The agent of depository designated in the order shall accept and hold the pooled securities in accordance with this article and regulations and orders issued under this article. (j) In the discretion of the administrator, whenever it appears to the administrator that any person has violated or is violating, or that there is reasonable cause to believe that any person is about to violate, any of the sections specified in subdivision (a) or any regulation or order issued thereunder, the administrator may bring an action in the name of the people of the State of California in the superior court to enjoin the violation or to enforce compliance with those sections or any regulation or order issued thereunder. Upon a proper showing a permanent or preliminary injunction, restraining order, or writ of mandate shall be granted, and the court may not require the administrator to post a bond. (k) In addition to other remedies, the administrator shall have the power and authority to impose the following sanctions for noncompliance with the sections specified in subdivision (a) after a hearing if requested by the party deemed in noncompliance. Any fine assessed pursuant to this subdivision shall be paid within 30 days after receipt of the assessment. (1) Assess against and collect from a depository a fine not to exceed two hundred fifty dollars ($250) for each day the depository fails to maintain with the agent of depository securities as required by Section 53652. (2) Assess against and collect from a depository a fine not to exceed one hundred dollars ($100) for each day beyond the time period specified in subdivision (b) of Section 53663 the depository negligently or willfully fails to file in the office of the administrator a written report required by that section. (3) Assess against and collect from a depository a fine not to exceed one hundred dollars ($100) for each day beyond the time period specified in subdivision (e) that a depository negligently or willfully fails to file in the office of the administrator a written report required by that subdivision. (4) Assess and collect from an agent of depository a fine not to exceed one hundred dollars ($100) for each day the agent of depository fails to comply with any of the applicable sections specified in subdivision (a) or any applicable regulation or order issued thereunder. (l) (1) In the event that a depository or agent of depository fails to pay a fine assessed by the administrator pursuant to subdivision (k) within 30 days of receipt of the assessment, the administrator may assess and collect an additional penalty of 5 percent of the fine for each month or part thereof that the payment is delinquent. (2) If a depository fails to pay the fines or penalties assessed by the administrator, the administrator may notify local agency treasurers with deposits in the depository. (3) If an agent of depository fails to pay the fines or penalties assessed by the administrator, the administrator may notify local agency treasurers who have authorized the agent of depository as provided in Sections 53649 and 53656, and may by order revoke the authorization of the agent of depository as provided in subdivision (i). (m) The amendments to this section enacted by the Legislature during the 1999-2000 Regular Session shall become operative on January 1, 2001. SEC. 22. 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 thirty thousand dollars ($130,000) unless the median sales price for California as reported by the Construction Industry Research Board for new homes sold indicates that the median sales price has increased. That sales price limit shall be increased or decreased each successive year by the agency according to the percentage change in the median sales price for new homes sold from the previous year as reported by the Construction Industry Research Board. (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 moderate income requirements set forth in Section 50093. (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. 23. 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 of their appropriation and availability may also 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, except that any funds not expended within 18 months of their appropriation and availability may also be available for the program set forth in paragraph (3) 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. 24. Section 2675.5 of the Labor Code is amended to read: 2675.5. (a) The commissioner shall deposit seventy-five dollars ($75) of each registrant's annual registration fee, required pursuant to paragraph (5) of subdivision (a) of Section 2675, into one separate account. Funds from the separate account shall be disbursed by the commissioner only to persons determined by the commissioner to have been damaged by the failure to pay wages and benefits by any garment manufacturer, jobber, contractor, or subcontractor after exhausting a bond, if any, to ensure the payment of wages and benefits. Any disbursed funds subsequently recovered by the commissioner shall be returned to the separate account. (b) The remainder of each registrant's annual registration fee not deposited into the special account pursuant to subdivision (a) shall be deposited in a subaccount and applied to costs incurred by the commissioner in administering the provisions of Section 2673.1, Section 2675, and this section, upon appropriation by the Legislature. SEC. 25. Section 3099.5 is added to the Labor Code, to read: 3099.5. (a) The Electrician Certification Fund is hereby created as a special account in the State Treasury. Proceeds of the fund may be expended by the department, upon appropriation by the Legislature, for the costs of the Division of Apprenticeship Standards program to validate and certify electricians as provided by Section 3099, and shall not be used for any other purpose. (b) The fund shall consist of the fees collected pursuant to Section 3099. SEC. 26. Section 7929.5 is added to the Labor Code, to read: 7929.5. (a) The Permanent Amusement Ride Inspection Fund is hereby created as a special account in the State Treasury. Proceeds of the fund may be expended by the Department of Industrial Relations, upon appropriation by the Legislature, for the costs of the Permanent Amusement Ride Inspection Program established pursuant to Part 8.1 (commencing with Section 7920) of Division 5 of the Labor Code, and shall not be used for any other purpose. (b) The fund shall consist of the fees collected pursuant to Section 7929. SEC. 27. Section 531 is added to the Military and Veterans Code, to read: 531. The Adjutant General may enter into a cooperative agreement with the City of Oakland and a school district for the purposes of establishing an Oakland Military Institute. The program will be a nonresidential military institute that would provide a structured, disciplined environment that would be conducive to learning in a college preparatory environment. In addition to academic skills, students would develop leadership, self-esteem, and a strong sense of community. SEC. 28. Section 3006 is added to the Penal Code, to read: 3006. (a) The Department of Corrections may require parolees participating in relapse prevention treatment programs or receiving medication treatments intended to prevent them from committing sex offenses to pay some or all of the costs associated with this treatment, subject to the person's ability to pay. (b) For the purposes of this section, "ability to pay" means the overall capability of the person to reimburse the costs, or a portion of the costs, of providing sex offender treatment, and shall include, but shall not be limited to, consideration of all of the following factors: (1) Present financial position. (2) Reasonably discernible future financial position. (3) Likelihood that the person shall be able to obtain employment after the date of parole. (4) Any other factor or factors which may bear upon the person's financial capability to reimburse the department for the costs. SEC. 29. Section 5024 is added to the Penal Code, to read: 5024. (a) The Legislature finds and declares that: (1) State costs for purchasing drugs and medical supplies for the health care of offenders in state custody have grown rapidly in recent years and will amount to almost seventy-five million dollars ($75,000,000) annually in the 1999-2000 fiscal year. (2) The Bureau of State Audits found in a January 2000 audit report that the state could save millions of dollars annually by improving its current processes for the procurement of drugs for inmate health care and by pursuing alternative procurement methods. (3) It is the intent of the Legislature that the Department of Corrections, in cooperation with the Department of General Services and other appropriate state agencies, take prompt action to adopt cost-effective reforms in its drug and medical supply procurement processes by establishing a program to obtain rebates from drug manufacturers, implementing alternative contracting and procurement reforms, or by some combination of these steps. (b) (1) The Director of the Department of Corrections, pursuant to the Administrative Procedure Act, Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, may adopt regulations requiring manufacturers of drugs to pay the department a rebate for the purchase of drugs for offenders in state custody that is at least equal to the rebate that would be applicable to the drug under Section 1927(c) of the federal Social Security Act (42 U.S.C. Sec. 1396r-8(c)). Any such regulation shall, at a minimum, specify the procedures for notifying drug manufacturers of the rebate requirements and for collecting rebate payments. (2) If a rebate program is implemented, the director shall develop, maintain, and update as necessary a list of drugs to be provided under the rebate program, and establish a rate structure for reimbursement of each drug included in the rebate program. Rates shall not be less than the actual cost of the drug. However, the director may purchase a listed drug directly from the manufacturer and negotiate the most favorable bulk price for that drug. In order to minimize state administrative costs and maximize state benefits for the rebate program, the director may establish a program that focuses upon obtaining rebates for those drugs that it determines are purchased by the department in relatively large volumes. (3) If a rebate program is implemented, the department shall submit an invoice, not less than two times per year, to each manufacturer for the amount of the rebate required by this subdivision. Drugs may be removed from the list for failure to pay the rebate required by this subdivision, unless the department determines that purchase of the drug is a medical necessity or that purchase of the drug is necessary to comply with a court order to ensure the appropriate provision of quality health care to offenders in state custody. (4) In order to minimize state administrative costs and maximize state benefits for such a rebate program, if one is implemented, the Department of Corrections may enter into interagency agreements with the Department of General Services, the State Department of Health Services, the State Department of Mental Health, or the State Department of Developmental Services, the University of California, another appropriate state department, or with more than one of those entities, for joint participation in a rebate program, collection and monitoring of necessary drug price and rebate data, the billing of manufacturers for rebates, the resolution of any disputes over rebates, and any other services necessary for the cost-effective operation of the rebate program. (5) The Department of Corrections, separately or in cooperation with other state agencies, may contract for the services of a pharmaceutical benefits manager for any services necessary for the cost-effective operation of the rebate program, if one is implemented, or for other services to improve the contracting and procurement of drugs and medical supplies for inmate health care. (c) Nothing in this section shall prohibit the department, as an alternative to or in addition to establishing a rebate program for drugs for inmate health care, from implementing, in cooperation with the Department of General Services and other appropriate state agencies, other cost-effective strategies for procurement of drugs and medical supplies for offenders in state custody, including, but not limited to: (1) Improvements in the existing statewide master agreement procedures for purchasing contract and noncontract drugs at a discount from drug manufacturers. (2) Participation by offenders in state custody infected with human immunodeficiency virus (HIV), the etiologic agent of acquired immune deficiency syndrome (AIDS), in the AIDS Drug Assistance Program. (3) Membership in the Minnesota Multistate Contracting Alliance for Pharmacy (MMCAP) or other cooperative purchasing arrangements with other governmental entities. (4) Greater centralization or standardization of procurement of drugs and medical supplies among individual prisons in the Department of Corrections prison system. (d) The Bureau of State Audits shall report to the Legislature and the Governor by January 10, 2002, its findings in regard to: (1) An evaluation of the trends in state costs for the procurement of drugs and medical supplies for offenders in state custody, and an assessment of the major factors affecting those trends. (2) A summary of the steps taken by the Department of Corrections, the Department of General Services, and other appropriate state agencies to implement this section. (3) An evaluation of the compliance by these state agencies with the findings and recommendations of the January 2000 Bureau of State Audits report for reform of procurement of drugs and medical supplies for offenders in state custody. (4) Any further recommendations of the Bureau of State Audits for reform of state drug procurement practices, policies, or statutes. SEC. 30. Section 10299 is added to the Public Contract Code, to read: 10299. (a) Notwithstanding any other provision of law, the director may consolidate the needs of multiple state agencies for information technology goods and services, and, pursuant to the procedures established in Chapter 3 (commencing with Section 12100), establish contracts, master agreements, multiple award schedules, cooperative agreements, including agreements with entities outside the state, and other types of agreements that leverage the state's buying power, for acquisitions authorized under Chapter 2 (commencing with Section 10290), Chapter 3 (commencing with Section 12100), and Chapter 3.6 (commencing with Section 12125). State agencies and local agencies may contract with suppliers awarded the contracts without further competitive bidding. (b) The director may make the services of the department available, upon the terms and conditions agreed upon, to any school district empowered to expend public funds. These school districts may, without further competitive bidding, utilize contracts, master agreements, multiple award schedules, cooperative agreements, or other types of agreements established by the department for use by school districts for the acquisition of information technology, goods, and services. The state shall incur no financial responsibility in connection with the contracting of local agencies under this section. SEC. 31. Section 355.1 is added to the Public Utilities Code, to read: 355.1. The commission may investigate issues associated with multiple qualified exchanges. If the commission determines that allowing electrical corporations to purchase from multiple qualified exchanges is in the public interest, the commission shall prepare and submit findings and recommendations to the Legislature on or before June 1, 2001. Prior to June 1, 2001, the commission may not implement the part of any decision authorizing electrical corporations to purchase from exchanges other than the Power Exchange. That portion of any decision of the commission adopted prior to January 1, 2001, but after June 1, 2000, authorizing electrical corporations to purchase from multiple qualified exchanges, may not be implemented. SEC. 32. Section 140.3 is added to the Streets and Highways Code, to read: 140.3. (a) For the purposes of this section, the following terms have the following meanings: (1) (A) "Mobile equipment" means devices owned by the department by which any person or property may be propelled, moved, or drawn on or off highway and that are used for employee transportation or material movement, or for construction or maintenance work relating to transportation, including, but not limited to, passenger vehicles, heavy duty trucks, boats, trailers, motorized construction equipment, and "slip-in" accessories or attachments that are used by more than one functional unit. (B) "Mobile equipment" does not include any of the following: (i) Office equipment, computers, and any other stationary, nonmovable, and integral part of a transportation facility. (ii) Passenger vehicles used to transport the public. (iii) Aircraft or related aeronautics equipment. (iv) Rolling stock used for intercity rail operations. (2) "Mobile equipment services" includes, but is not limited to, all of the following: (A) Use of mobile equipment and services, including, but not limited to, the purchase of new vehicles. (B) Receiving, servicing, and equipping new mobile equipment units. (C) Assembling components into completed mobile equipment units. (D) Managing mobile equipment and services, including, but not limited to, payment for fuel and insurance. (E) Repairing, rehabilitating, and maintaining mobile equipment. (F) Disposing of used vehicles. (3) "Mobile equipment services cost recovery" means revenues from assessments charged to the department's divisions and programs for mobile equipment services, or revenues from charges for equipment services provided to local transportation authorities, including, but not limited to, cost recovery for all of the following: (A) Salaries and wages. (B) Facility and inventory improvements. (C) Capital outlay support projects. (D) Overhead, depreciation, and operating expenses. (b) The department, with the approval of the Department of Finance, shall set rates for mobile equipment services. The department shall review its rates on an annual basis and, upon approval by the Department of Finance, shall publish a rate schedule on or before April 30 of each year. The department shall collect mobile equipment services cost recovery. (c) The Equipment Service Fund is hereby created in the State Treasury. Notwithstanding Section 13340, all money in the fund is continuously appropriated to the department to pay for mobile equipment services. (d) The net proceeds from mobile equipment services cost recovery shall be deposited in the fund. In addition, any moneys appropriated to the department under the annual Budget Act, or under any other act, for the use of existing mobile equipment or for the purchase of that equipment, and any moneys transferred to the department from any account within the State Transportation Fund for those purposes, may be deposited in the fund. (e) If the unencumbered balance remaining in the fund at the end of any fiscal year is more than 25 percent of the total annual appropriation made to the fund under the most recent Budget Act, as determined by the department and the Department of Finance, the unencumbered balance, less an amount equal to the amount required to provide mobile equipment services for 60 days, shall be refunded to all programs that were assessed mobile equipment service charges during that fiscal year. SEC. 33. (a) 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) Pursuant to its strategic plan, DGS committed itself to providing the following two categories of services by July 1, 1998: (1) services that the Legislature or Governor requires state agencies to purchase from DGS, and (2) services that state agencies are not required to purchase from DGS, but that DGS can provide on a cost-competitive basis. (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 3 (commencing with Section 13940) of Part 4 of Division 3 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 from 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 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. (h) 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, except that the Office of State Printing may not accept or publish any paid political advertising. (i) 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. (j) 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. (k) This section shall remain in effect only until the effective date of the Budget Act of 2001 or June 30, 2001, whichever occurs first. SEC. 34. (a) The Department of Veterans Affairs shall renovate the Lincoln Theater at the Yountville Veterans' Home. The renovation shall be managed by the Department of General Services. The Department of General Services shall consult with the Friends of the Lincoln Theater as to any portion of the renovation that is paid for by funds provided by that organization. (b) The scope of this project includes the renovation of approximately 13,150 gross square feet and the addition of approximately 30,150 gross square feet to the Lincoln Theater. The project will modernize and upgrade performing areas of the theater including new lighting, acoustical equipment, a mechanical lift, and an enlarged stage apron. Audience amenities include contouring of the theater floor to improve sightlines, refurbishing existing seating, and installation of new seating, acoustical treatment, and the addition of a balcony with elevator. The existing lobby will be demolished and replaced with an enlarged lobby/gallery and a new patio at the theater entrance. New operational support rooms as well as restrooms will be constructed on the north side of the existing building and new heating, ventilation, and air-conditioning will be installed throughout. The existing building will be seismically strengthened. Site improvements include the addition of an entry patio, landscape enhancements with tree plantings, shrubs, and ground covers. (c) The General Fund may not be used to augment either the seismic or reimbursement-funded portions of this project. Any project cost increases beyond the authority provided in Section 13332.11 of the Government Code shall come from nonstate funds with no additional appropriations from the General Fund. SEC. 35. (a) The Department of Transportation, in consultation with the Office of Planning and Research, shall conduct a statewide rail transportation assessment. This rail transportation assessment shall be conducted in cooperation with regional and local transportation agencies, as well as private freight railroads, and shall incorporate both a passenger portion and a freight rail systems portion. The passenger rail portion of the study shall include intercity, commuter, and urban rail systems. The study shall include a report that does all of the following: (1) Examines how the different modes of rail transportation interconnect with each other and with other forms of transportation. The study shall investigate where there are gaps in connectivity between passenger rail systems. The report shall also make recommendations for improving connectivity for passenger and freight rail. (2) Identifies where there are currently high levels of freight and passenger rail track congestion, as well as where agencies project future rail congestion problems. The report shall also make recommendations for capital projects that would alleviate or prevent the onset of track congestion. (3) Reports on plans for capital projects for each rail transportation agency, both public and private, over the next 10 years. Capital projects include improvements that enhance public safety, including, but not limited to, grade crossing separations, increase track capacity, including, but not limited to, passing tracks or sidings, and increase passenger services, including, but not limited to, additional passenger cars and locomotives. The report shall also identify where plans for capital improvements or services by one rail agency will conflict with plans for capital improvements or service with another rail agency. (4) Examines the cost effectiveness of current funding for rail projects. (b) Based on the findings from the issues listed in subdivision (a), the report shall estimate and document statewide unfunded capital and operating needs over the next 10 years for each respective agency. (c) The department shall submit the report to the Legislature on or before January 1, 2002. SEC. 36. Due to unique facts and circumstances applicable to the University of California, San Francisco and the San Francisco General Hospital, the Legislature finds and declares that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution. The special legislation contained in Section 10 of this act is, therefore, necessarily applicable to only the University of California, San Francisco and the San Francisco General Hospital. SEC. 37. Funding for the implementation of Section 1 of this act shall be pursuant to an appropriation of funds for such purposes in the annual Budget Act. SEC. 38. (a) The sum of one million three hundred thousand dollars ($1,300,000) is hereby appropriated from the General Fund, in augmentation of Item 8940-001-0001 of Section 2.00 of the Budget Act of 2000, to fund the costs of the Military Department in the operation of the program established pursuant to Section 531 of the Military and Veterans Code, as added by Section 27 of this act, in the 2000-01 fiscal year. The amount appropriated herein shall only be available to the extent that it is matched on a dollar-for-dollar basis. (b) General Fund revenues appropriated for school districts, as defined in subdivision (c) of Section 41202 of the Education Code, pursuant to Section 8 of Article XVI of the California Constitution and the total allocations to school districts and community colleges from General Fund proceeds of taxes appropriated pursuant to Article XII B, as defined in subdivision (e) of Section 41202 of the Education Code, shall not be used as a match for funds appropriated herein. SEC. 39. 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. 40. 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 2000 at the earliest possible time, it is necessary that this act take effect immediately.