BILL NUMBER: SB 815 CHAPTERED 09/26/00 CHAPTER 671 FILED WITH SECRETARY OF STATE SEPTEMBER 26, 2000 APPROVED BY GOVERNOR SEPTEMBER 24, 2000 PASSED THE SENATE AUGUST 31, 2000 PASSED THE ASSEMBLY AUGUST 30, 2000 AMENDED IN ASSEMBLY AUGUST 29, 2000 AMENDED IN ASSEMBLY AUGUST 25, 2000 AMENDED IN ASSEMBLY JUNE 22, 2000 AMENDED IN SENATE JANUARY 27, 2000 AMENDED IN SENATE JANUARY 11, 2000 AMENDED IN SENATE JANUARY 3, 2000 INTRODUCED BY Senator Chesbro (Principal coauthor: Senator Monteith) (Coauthor: Senator Leslie) (Coauthor: Assembly Member Cardoza) FEBRUARY 25, 1999 An act to amend Sections 77201 and 77201.1 of the Government Code, and to amend Section 1 of Chapter 1045 of the Statutes of 1998, relating to state and local government, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 815, Chesbro. Courts: remittance and reimbursement. (1) Existing law specifies certain amounts which a county is required to remit to the state for purposes of trial court funding. This bill would revise those amounts with respect to Contra Costa, Del Norte, and San Bernardino Counties, except as specified. (2) Existing law specifies the funds required to be repaid by Merced County pursuant to a loan for deferred fire protection contract costs, and provides that the amount of the local matching funds made to obtain certain juvenile correction funds in a specified year is deemed a payment for deferred fire protection contract costs. This bill would extend the period of participation in the juvenile correction program deemed repayment on that loan. (3) The bill would declare that it is to take effect immediately as an urgency statute. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 77201 of the Government Code is amended to read: 77201. (a) Commencing on July 1, 1997, no county shall be responsible for funding court operations, as defined in Section 77003 and Rule 810 of the California Rules of Court as it read on July 1, 1996. (b) In the 1997-98 fiscal year, each county shall remit to the state in installments due on January 1, April 1, and June 30, the amounts specified in paragraphs (1) and (2), as follows: (1) Except as otherwise specifically provided in this section, each county shall remit to the state the amount listed below which is based on an amount expended by the respective county for court operations during the 1994-95 fiscal year: Jurisdiction Amount Alameda ........................ $ 42,045,093 Alpine ......................... 46,044 Amador ......................... 900,196 Butte .......................... 2,604,611 Calaveras ...................... 420,893 Colusa ......................... 309,009 Contra Costa ................... 21,634,450 Del Norte ...................... 780,786 El Dorado ...................... 3,888,927 Fresno ......................... 13,355,025 Glenn .......................... 371,607 Humboldt ....................... 2,437,196 Imperial ....................... 2,055,173 Inyo ........................... 546,508 Kern ........................... 16,669,917 Kings........................... 2,594,901 Lake ........................... 975,311 Lassen ......................... 517,921 Los Angeles .................... 291,872,379 Madera ......................... 1,242,968 Marin .......................... 6,837,518 Mariposa ....................... 177,880 Mendocino ...................... 1,739,605 Merced ......................... 1,363,409 Modoc .......................... 114,249 Mono ........................... 271,021 Monterey ....................... 5,739,655 Napa ........................... 2,866,986 Nevada ......................... 815,130 Orange ......................... 76,567,372 Placer ......................... 6,450,175 Plumas ......................... 413,368 Riverside ...................... 32,524,412 Sacramento ..................... 40,692,954 San Benito ..................... 460,552 San Bernardino ................. 31,516,134 San Diego ...................... 77,637,904 San Francisco .................. 31,142,353 San Joaquin .................... 9,102,834 San Luis Obispo ................ 6,840,067 San Mateo ...................... 20,383,643 Santa Barbara .................. 10,604,431 Santa Clara .................... 49,876,177 Santa Cruz ..................... 6,449,104 Shasta ......................... 3,369,017 Sierra ......................... 40,477 Siskiyou ....................... 478,144 Solano ......................... 10,780,179 Sonoma ......................... 9,273,174 Stanislaus ..................... 8,320,727 Sutter ......................... 1,718,287 Tehama ......................... 1,352,370 Trinity ........................ 620,990 Tulare ......................... 6,981,681 Tuolumne ....................... 1,080,723 Ventura ........................ 16,721,157 Yolo ........................... 2,564,985 Yuba ........................... 842,240 (2) Except as otherwise specifically provided in this section, each county shall also remit to the state the amount listed below which is based on an amount of fine and forfeiture revenue remitted to the state pursuant to Sections 27361 and 76000 of this code, Sections 1463.001 and 1464 of the Penal Code, and Sections 42007, 42007.1, and 42008 of the Vehicle Code during the 1994-95 fiscal year: Jurisdiction Amount Alameda ........................ $12,769,882 Alpine ......................... 58,757 Amador ......................... 377,005 Butte .......................... 1,437,671 Calaveras ...................... 418,558 Colusa ......................... 485,040 Contra Costa ................... 6,138,742 Del Norte ...................... 235,438 El Dorado ...................... 1,217,093 Fresno ......................... 4,505,786 Glenn .......................... 455,389 Humboldt ....................... 1,161,745 Imperial ....................... 1,350,760 Inyo ........................... 878,321 Kern ........................... 6,688,247 Kings........................... 1,115,601 Lake ........................... 424,070 Lassen ......................... 513,445 Los Angeles .................... 89,771,310 Madera ......................... 1,207,998 Marin .......................... 2,700,045 Mariposa ....................... 135,457 Mendocino ...................... 948,837 Merced ......................... 2,093,355 Modoc .......................... 122,156 Mono ........................... 415,136 Monterey ....................... 3,855,457 Napa ........................... 874,219 Nevada ......................... 1,378,796 Orange ......................... 24,830,542 Placer ......................... 2,182,230 Plumas ......................... 225,080 Riverside ...................... 13,328,445 Sacramento ..................... 7,548,829 San Benito ..................... 346,451 San Bernardino ................. 11,694,120 San Diego ...................... 21,410,586 San Francisco .................. 5,925,950 San Joaquin .................... 4,753,688 San Luis Obispo ................ 2,573,968 San Mateo ...................... 7,124,638 Santa Barbara .................. 4,094,288 Santa Clara .................... 15,561,983 Santa Cruz ..................... 2,267,327 Shasta ......................... 1,198,773 Sierra ......................... 46,778 Siskiyou ....................... 801,329 Solano ......................... 3,757,059 Sonoma ......................... 2,851,883 Stanislaus ..................... 2,669,045 Sutter ......................... 802,574 Tehama ......................... 761,188 Trinity ........................ 137,087 Tulare ......................... 2,299,167 Tuolumne ....................... 440,496 Ventura ........................ 6,129,411 Yolo ........................... 1,516,065 Yuba ........................... 402,077 (3) The installment due on January 1 shall be for 25 percent of the amounts specified in paragraphs (1) and (2). The installments due on April 1 and June 30 shall be prorated uniformly to reflect any adjustments made by the Department of Finance, as provided in this section. If no adjustment is made by April 1, 1998, the April 1, 1998, installment shall be for 15 percent of the amounts specified in paragraphs (1) and (2). If no adjustment is made by June 30, 1998, the June 30, 1998, installment shall be for the balance of the amounts specified in paragraphs (1) and (2). (4) Except as otherwise specifically provided in this section, county remittances specified in paragraphs (1) and (2) shall not be increased in subsequent years. (5) Any change in statute or rule of court that either reduces the bail schedule or redirects or reduces a county's portion of fee, fine, and forfeiture revenue to an amount that is less than (A) the fees, fines, and forfeitures retained by that county and (B) the county's portion of fines and forfeitures transmitted to the state in the 1994-95 fiscal year, shall reduce that county's remittance specified in paragraph (2) of this subdivision by an equal amount. Nothing in this paragraph is intended to limit judicial sentencing discretion. (c) The Department of Finance shall adjust the amount specified in paragraph (1) of subdivision (b) that a county is required to submit to the state, pursuant to the following: (1) A county shall submit a declaration to the Department of Finance, no later than February 15, 1998, that the amount it is required to submit to the state pursuant to paragraph (1) of subdivision (b) either includes or does not include the costs for local judicial benefits which are court operation costs as defined in Section 77003 and Rule 810 of the California Rules of Court. The trial courts in a county that submits such a declaration shall be given a copy of the declaration and the opportunity to comment on the validity of the statements in the declaration. The Department of Finance shall verify the facts in the county's declaration and comments, if any. Upon verification that the amount the county is required to submit to the state includes the costs of local judicial benefits, the department shall reduce on or before June 30, 1998, the amount the county is required to submit to the state pursuant to paragraph (1) of subdivision (b) by an amount equal to the cost of those judicial benefits, in which case the county shall continue to be responsible for the cost of those benefits. If a county disagrees with the Department of Finance's failure to verify the facts in the county's declaration and reduce the amount the county is required to submit to the state pursuant to paragraph (1) of subdivision (b), the county may request that the Controller conduct an audit to verify the facts in the county's declaration. The Controller shall conduct the requested audit which shall be at the requesting county's expense. If the Controller's audit verifies the facts in the county' s declaration, the department shall reduce the amount the county is required to submit to the state pursuant to paragraph (1) of subdivision (b) by an amount equal to the amount verified by the Controller's audit and the state shall reimburse the requesting county for the cost of the audit. (d) The Department of Finance shall adjust the amount specified in paragraph (1) of subdivision (b) of Section 77201.1 that a county is required to submit to the state, pursuant to the following procedures: (1) A county may submit a declaration to the Department of Finance, no later than February 15, 1998, that declares that (A) the county incorrectly reported county costs as court operations costs as defined in Section 77003 in the 1994-95 fiscal year, and that incorrect report resulted in the amount the county is required to submit to the state pursuant to paragraph (1) of subdivision (b) being too high, (B) the amount the county is required to submit to the state pursuant to paragraph (1) of subdivision (b) includes amounts that were specifically appropriated, funded, and expended by a county or city and county during the 1994-95 fiscal year to fund extraordinary one-time expenditures for court operation costs, or (C) the amount the county is required to submit to the state pursuant to paragraph (1) of subdivision (b) includes expenses that were funded from grants or subventions from any source, for court operation costs that could not have been funded without those grants or subventions being available. A county submitting that declaration shall concurrently transmit a copy of the declaration to the trial courts of that county. The trial courts in a county that submits that declaration shall have the opportunity to comment to the Department of Finance on the validity of the statements in the declaration. Upon receipt of the declaration and comments, if any, the Department of Finance shall determine and certify which costs identified in the county's declaration were incorrectly reported as court operation costs or were expended for extraordinary one-time expenditures or funded from grants or subventions in the 1994-95 fiscal year. The Department of Finance shall reduce the amount a county must submit to the state pursuant to paragraph (1) of subdivision (b) of Section 77201.1 by an amount equal to the amount the department certifies was incorrectly reported as court operations costs or were expended for extraordinary one-time expense or funded from grants or subventions in the 1994-95 fiscal year. If a county disagrees with the Department of Finance's failure to verify the facts in the county's declaration and reduce the amount the county is required to submit to the state pursuant to paragraph (1) of subdivision (b) of Section 77201.1, the county may request that the Controller conduct an audit to verify the facts in the county's declaration. The Controller shall conduct the requested audit, which shall be at the requesting county's expense. If the Controller's audit verifies the facts in the county's declaration, the department shall reduce the amount the county is required to submit to the state pursuant to paragraph (1) of subdivision (b) of Section 77201.1 by an amount equal to the amount verified by the Controller's audit and the state shall reimburse the requesting county for the cost of the audit. A county shall provide, at no charge to the court, any service for which the amount in paragraph (1) of subdivision (b) of Section 77201.1 was adjusted downward, if the county is required to provide that service at no cost to the court by any other provision of law. (2) A court may submit a declaration to the Department of Finance, no later than February 15, 1998, that the county failed to report county costs as court operations costs as defined in Section 77003 in the 1994-95 fiscal year, and that this failure resulted in the amount the county is required to submit to the state pursuant to paragraph (1) of subdivision (b) being too low. A court submitting that declaration shall concurrently transmit a copy of the declaration to the county. A county shall have the opportunity to comment to the Department of Finance on the validity of statements in the declaration and comments, if any. Upon receipt of the declaration, the Department of Finance shall determine and certify which costs identified in the court's declaration should have been reported by the county as court operation costs in the 1994-95 fiscal year and whether this failure resulted in the amount the county is required to submit to the state pursuant to paragraph (1) of subdivision (b) being too low. The Department of Finance shall notify the county, the trial courts in the county, and the Judicial Council of its certification and decision. Within 30 days, the county shall either notify the Department of Finance, trial courts in the county, and the Judicial Council that the county shall assume responsibility for the costs the county has failed to report, or that the department shall increase the amount the county is required to submit to the state pursuant to paragraph (1) of subdivision (b) of Section 77201.1 by an amount equal to the amount certified by the department. A county shall not be required to continue to provide services for which the amount in paragraph (1) of subdivision (b) of Section 77201.1 was adjusted upward. (e) The Legislature hereby finds and declares that to ensure an orderly transition to state trial court funding, it is necessary to delay the adjustments to county obligation payments provided for by Article 3 (commencing with Section 77200) of Chapter 13 of Title 8, as added by Chapter 850 of the Statutes of 1997, until the 1998-99 fiscal year. The Legislature also finds and declares that since increase adjustments to the county obligation amounts will not take effect in the 1997-98 fiscal year, county charges for those services related to the increase adjustments shall not occur in the 1997-98 fiscal year. It is recognized that the counties have an obligation to provide, and the trial courts have an obligation to pay, for services provided by the county pursuant to Section 77212. In the 1997-98 fiscal year, the counties shall charge for, and the courts shall pay, these obligations consistent with paragraphs (1) and (2) of this subdivision. (1) For the 1997-98 fiscal year, a county shall reduce the charges to a court for those services for which the amount in paragraph (1) of subdivision (b) of Section 77201.1 is adjusted upward, by an amount equal to the lesser of the following: (A) The amount of the increase adjustment certified by the department pursuant to paragraph (2) of subdivision (d). (B) The difference between the actual amount charged and paid for from the trial court operations fund, and the amount charged in the 1994-95 fiscal year. (2) For the 1997-98 fiscal year, any funds paid out of the trial court operations fund established pursuant to Section 77009 during the 1997-98 fiscal year to pay for those services for which there was an upward adjustment, shall be returned to the trial court operations fund in the amount equal to the lesser of the following: (A) The amount of the increase adjustment certified by the department pursuant to paragraph (2) of subdivision (d). (B) The difference between the actual amount charged and paid for from the trial court operations fund, and the amount charged in the 1994-95 fiscal year. (3) The Judicial Council shall reduce the allocation to the courts by an amount equal to the amount of any increase adjustment certified by the Department of Finance, if the cost of those services was used in determining the Judicial Council's allocation of funding for the 1997-98 fiscal year. (4) In the event the charges are not reduced as provided in paragraph (1) or the funds are not returned to the trial court operations fund as provided in paragraph (2), the trial court operations fund shall be refunded for the 1998-99 fiscal year. Funds provided to the trial court operations fund pursuant to this paragraph shall be available to the trial courts to meet financial obligations incurred during the 1997-98 fiscal year. To the extent that a trial court receives total resources for trial court funding from the county and the state for the 1997-98 fiscal year that exceeded the amount of the allocation approved by the Judicial Council by November 30, 1997, these amounts shall be available for expenditure in the 1998-99 fiscal year and the Judicial Council shall reduce the 1998-99 fiscal year allocation of the court by an equal amount. (f) Nothing in this section is intended to relieve a county of the responsibility to provide necessary and suitable court facilities pursuant to Section 68073. (g) Nothing in this section is intended to relieve a county of the responsibility for justice-related expenses not included in Section 77003 which are otherwise required of the county by law, including, but not limited to, indigent defense representation and investigation, and payment of youth authority charges. (h) The Department of Finance shall notify the county, trial courts in the county, and Judicial Council of the final decision and resulting adjustment. (i) On or before February 15, 1998, each county shall submit to the Department of Finance a report of the amount it expended for trial court operations as defined in Section 77003 and Rule 810 of the California Rules of Court as it read on July 1, 1996, between the start of the 1997-98 fiscal year and the effective date of this section. The department shall reduce the amount a county is required to remit to the state pursuant to paragraph (1) of subdivision (b) in the 1997-98 fiscal year by an amount equal to the amount a county expended for court operation costs between the start of the 1997-98 fiscal year and the effective date of this section. The department shall also reduce the amount a county is required to remit to the state pursuant to paragraph (2) of subdivision (b) in the 1997-98 fiscal year by an amount equal to the amount of fine and forfeiture revenue that a county remitted to the state between the start of the 1997-98 fiscal year and the effective date of this section. The department shall notify the county, the trial courts of the county, and the Judicial Council of the amount it has reduced a county's obligation to remit to the state pursuant to this subdivision. SEC. 2. Section 77201.1 of the Government Code is amended to read: 77201.1. (a) Commencing on July 1, 1997, no county shall be responsible for funding court operations, as defined in Section 77003 and Rule 810 of the California Rules of Court as it read on July 1, 1996. (b) Commencing in the 1999-2000 fiscal year, and each fiscal year thereafter, each county shall remit to the state in four equal installments due on October 1, January 1, April 1, and May 1, the amounts specified in paragraphs (1) and (2), as follows: (1) Except as otherwise specifically provided in this section, each county shall remit to the state the amount listed below which is based on an amount expended by the respective county for court operations during the 1994-95 fiscal year: Jurisdiction Amount Alameda ........................ $ 22,509,905 Alpine ......................... - Amador ......................... - Butte .......................... - Calaveras ...................... - Colusa ......................... - Contra Costa ................... 11,974,535 Del Norte ...................... - El Dorado ...................... - Fresno ......................... 11,222,780 Glenn .......................... - Humboldt ....................... - Imperial ....................... - Inyo ........................... - Kern ........................... 9,234,511 Kings........................... - Lake ........................... - Lassen ......................... - Los Angeles .................... 175,330,647 Madera ......................... - Marin .......................... - Mariposa ....................... - Mendocino ...................... - Merced ......................... - Modoc .......................... - Mono ........................... - Monterey ....................... 4,520,911 Napa ........................... - Nevada ......................... - Orange ......................... 38,846,003 Placer ......................... - Plumas ......................... - Riverside ...................... 17,857,241 Sacramento ..................... 20,733,264 San Benito ..................... - San Bernardino ................. 20,227,102 San Diego ...................... 43,495,932 San Francisco .................. 19,295,303 San Joaquin .................... 6,543,068 San Luis Obispo ................ - San Mateo ...................... 12,181,079 Santa Barbara .................. 6,764,792 Santa Clara .................... 28,689,450 Santa Cruz ..................... - Shasta ......................... - Sierra ......................... - Siskiyou ....................... - Solano ......................... 6,242,661 Sonoma ......................... 6,162,466 Stanislaus ..................... 3,506,297 Sutter ......................... - Tehama ......................... - Trinity ........................ - Tulare ......................... - Tuolumne ....................... - Ventura ........................ 9,734,190 Yolo ........................... - Yuba ........................... - (2) Except as otherwise specifically provided in this section, each county shall also remit to the state the amount listed below which is based on an amount of fine and forfeiture revenue remitted to the state pursuant to Sections 27361 and 76000 of this code, Sections 1463.001, 1463.07, and 1464 of the Penal Code, and Sections 42007, 42007.1, and 42008 of the Vehicle Code during the 1994-95 fiscal year: Jurisdiction Amount Alameda .......................... $ 9,912,156 Alpine ........................... 58,757 Amador ........................... 265,707 Butte ............................ 1,217,052 Calaveras ........................ 310,331 Colusa ........................... 397,468 Contra Costa ..................... 4,486,486 Del Norte ........................ 124,085 El Dorado ........................ 1,028,349 Fresno ........................... 3,695,633 Glenn ............................ 360,974 Humboldt ......................... 1,025,583 Imperial ......................... 1,144,661 Inyo ............................. 614,920 Kern ............................. 5,530,972 Kings............................. 982,208 Lake ............................. 375,570 Lassen ........................... 430,163 Los Angeles ...................... 71,002,129 Madera ........................... 1,042,797 Marin ............................ 2,111,712 Mariposa ......................... 135,457 Mendocino ........................ 717,075 Merced ........................... 1,733,156 Modoc ............................ 104,729 Mono ............................. 415,136 Monterey ......................... 3,330,125 Napa ............................. 719,168 Nevada ........................... 1,220,686 Orange ........................... 19,572,810 Placer ........................... 1,243,754 Plumas ........................... 193,772 Riverside ........................ 7,681,744 Sacramento ....................... 5,937,204 San Benito ....................... 302,324 San Bernardino ................... 8,163,193 San Diego ........................ 16,166,735 San Francisco .................... 4,046,107 San Joaquin ...................... 3,562,835 San Luis Obispo .................. 2,036,515 San Mateo ........................ 4,831,497 Santa Barbara .................... 3,277,610 Santa Clara ...................... 11,597,583 Santa Cruz ....................... 1,902,096 Shasta ........................... 1,044,700 Sierra ........................... 42,533 Siskiyou ......................... 615,581 Solano ........................... 2,708,758 Sonoma ........................... 2,316,999 Stanislaus ....................... 1,855,169 Sutter ........................... 678,681 Tehama ........................... 640,303 Trinity .......................... 137,087 Tulare ........................... 1,840,422 Tuolumne ......................... 361,665 Ventura .......................... 4,575,349 Yolo ............................. 880,798 Yuba ............................. 289,325 (3) Except as otherwise specifically provided in this section, county remittances specified in paragraphs (1) and (2) shall not be increased in subsequent years. (4) Except for those counties with a population of 70,000, or less, on January 1, 1996, the amount a county is required to remit pursuant to paragraph (1) shall be adjusted by the amount equal to any adjustment resulting from the procedures in subdivisions (c) and (d) of Section 77201 as that section read on June 30, 1998, to the extent a county filed an appeal with the Controller with respect to the findings made by the Department of Finance. This paragraph shall not be construed to establish a new appeal process beyond what was provided by Section 77201, as that section read on June 30, 1998. (5) Any change in statute or rule of court that either reduces the bail schedule or redirects or reduces a county's portion of fee, fine, and forfeiture revenue to an amount that is less than (A) the fees, fines, and forfeitures retained by that county, and (B) the county's portion of fines and forfeitures transmitted to the state in the 1994-95 fiscal year, shall reduce that county's remittance specified in paragraph (2) of this subdivision by an equal amount. Nothing in this paragraph is intended to limit judicial sentencing discretion. (c) Nothing in this section is intended to relieve a county of the responsibility to provide necessary and suitable court facilities pursuant to Section 68073. (d) Nothing in this section is intended to relieve a county of the responsibility for justice-related expenses not included in Section 77003 which are otherwise required of the county by law, including, but not limited to, indigent defense representation and investigation, and payment of youth authority charges. (e) County base year remittance requirements specified in paragraph (2) of subdivision (b) incorporate specific reductions to reflect those instances where the Department of Finance has determined that a county's remittance to both the General Fund and the Trial Court Trust Fund during the 1994-95 fiscal year exceeded the aggregate amount of state funding from the General Fund and the Trial Court Trust Fund. The amount of the reduction was determined by calculating the difference between the amount the county remitted to the General Fund and the Trial Court Trust Fund and the aggregate amount of state support from the General Fund and the Trial Court Trust Fund allocated to the county's trial courts. In making its determination of whether a county is entitled to a reduction pursuant to that paragraph, the Department of Finance subtracted from county revenues remitted to the state, all moneys derived from the fee required by Section 42007.1 of the Vehicle Code and the parking surcharge required by subdivision (c) of Section 76000. (f) Notwithstanding subdivision (e), the Department of Finance shall not reduce a county's base year remittance requirement, as specified in paragraph (2) of subdivision (b), if the county's trial court funding allocation was modified pursuant to the amendments to the allocation formula set forth in paragraph (4) of subdivision (d) of Section 77200, as amended by Chapter 2 of the Statutes of 1993, to provide a stable level of funding for small county courts in response to reductions in the General Fund support for the trial courts. (g) In any fiscal year in which a county of the first class pays the employer-paid retirement contribution for court employees, or any other employees of the county who provide a service to the court, and the amounts of those payments are charged to the budget of the courts, the sum the county is required to pay to the state pursuant to paragraph (1) of subdivision (b) shall be increased by the actual amount charged to the trial court up to twenty-three million five hundred twenty-seven thousand nine hundred forty-nine dollars ($23,527,949) in that fiscal year. The county and the trial court shall report to the Controller and the Department of Finance the actual amount charged in that fiscal year. (h) This section shall become operative on July 1, 1999. SEC. 3. Section 1 of Chapter 1045 of the Statutes of 1998 is amended to read: Section 1. (a) For a county that received a loan pursuant to Article 1.5 (commencing with Section 55620) of Chapter 4 of Part 2 of Division 2 of Title 2 of the Government Code, the amount of the local match required and those other funds necessary to complete the project as described in the grant award made pursuant to subdivision (b) of Section 4 of Chapter 339 of the Statutes of 1998 that is paid by the county during its participation in the program specified in that subdivision in the 1999-2000, 2000-2001, 2001-2002, and 2002-2003 fiscal years, shall be deemed a payment on the loan provided pursuant to that article. (b) The principal balance of the loan made pursuant to that Article 1.5, following the application of any payments made by a county and the application of the payment deemed to have been made pursuant to subdivision (a), shall be paid by a county in annual installments of no less than 10 percent of the principal balance of the loan. These payments shall be made by December 31 of each year commencing in the fiscal year following the initial participation in the program authorized by Section 4 of Chapter 339 of the Statutes of 1998. No further interest shall accrue on the loan after the operative date of this act and any interest accrued to date is hereby waived. (c) This act shall become operative only if the county participates during the 1998-99 fiscal year or the 1999-2000 fiscal year in the program or programs implemented pursuant to Sections 2 to 4, inclusive, of Chapter 339 of the Statutes of 1998. SEC. 4. Section 2 of this bill shall not become operative if Assembly Bill 2402 is enacted and becomes operative before this bill and amends Section 77201.1 of the Government Code. SEC. 5. 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 correct the statutory amounts that Contra Costa, Del Norte, and San Bernardino Counties shall be required to remit to the state for purposes of trial court funding, and in order that Merced County may proceed with the construction of a new juvenile hall as contemplated in Chapter 1045 of the Statutes of 1998 it is necessary that this act take effect immediately.