Amended in Senate June 19, 2014

Amended in Senate August 28, 2013

Amended in Senate August 27, 2013

Amended in Senate July 3, 2013

Amended in Senate June 20, 2013

Amended in Assembly March 19, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 640

Introduced by Assembly Member Hall

February 20, 2013

begin delete An act to add Section 6720 to the Labor Code, relating to employment, and declaring the urgency thereof, to take effect immediately. end delete begin insert An act to amend Section 69432.7 of the Education Code, relating to student financial aid. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 640, as amended, Hall. begin delete Occupational safety and health: adult films. end delete begin insert Cal Grant Program: renewal awards. end insert

begin insert

The Cal Grant Program establishes the Cal Grant A and B Entitlement awards, the California Community College Transfer Entitlement awards, the Competitive Cal Grant A and B awards, the Cal Grant C awards, and the Cal Grant T awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions.

end insert begin insert

Existing law requires the commission to certify by October 1 of each year a qualifying institution’s latest 3-year cohort default rate and graduation rate as most recently reported by the United States Department of Education. Existing law provides that, for purposes of the 2012-13 academic year, and every academic year thereafter, an otherwise qualifying institution with a 3-year cohort default rate that is equal to or greater than 15.5% is ineligible for initial and renewal Cal Grant awards at the institution. Existing law provides that an otherwise qualifying institution is ineligible for an initial or renewal Cal Grant award at the institution if the institution has a graduation rate of 30% or less for students taking 150% or less of the expected time to complete degree requirements, as specified, with certain exceptions.

end insert begin insert

This bill would require the commission to establish an appeal process for an otherwise qualifying institution that fails to satisfy the 3-year cohort default rate and graduation rate requirements, and would make nonsubstantive and conforming changes.

end insert begin delete

The California Occupational Safety and Health Act of 1973 establishes certain safety and other responsibilities of employers and employees. Violations of the act under certain circumstances are a crime.

end delete begin delete

This bill would require an employer engaged in the production of an adult film to adopt prescribed practices and procedures to protect employees from exposure to, and infection by, sexually transmitted diseases, including engineering and work practice controls, an exposure control plan, hepatitis B vaccinations, medical monitoring, and information and training on health and safety. The bill would define terms for those purposes. Because a violation of the act would be a crime under certain circumstances, the bill would impose a state-mandated local program by creating a new crime.

end delete begin delete

This bill would provide that its provisions are severable.

end delete begin delete

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.

end delete begin delete

This bill would provide that no reimbursement is required by this act for a specified reason.

end delete begin delete

This bill would declare that it is to take effect immediately as an urgency statute.

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Vote:  begin delete ²⁄₃ end delete begin insert majority end insert . Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete yes end delete begin insert no end insert .

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

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 69432.7 of the end insert begin insert Education Code end insert begin insert is amended
to read: end insert

69432.7.  

As used in this chapter, the following terms have the
following meanings:

(a) An “academic year” is July 1 to June 30, inclusive. The
starting date of a session shall determine the academic year in
which it is included.

(b) “Access costs” means living expenses and expenses for
transportation, supplies, and books.

(c) “Award year” means one academic year, or the equivalent,
of attendance at a qualifying institution.

(d) “College grade point average” and “community college
grade point average” mean a grade point average calculated on the
basis of all college work completed, except for nontransferable
units and courses not counted in the computation for admission to
a California public institution of higher education that grants a
baccalaureate degree.

(e) “Commission” means the Student Aid Commission.

(f) “Enrollment status” means part- or full-time status.

(1) “Part time,” for purposes of Cal Grant eligibility, means 6
to 11 semester units, inclusive, or the equivalent.

(2) “Full time,” for purposes of Cal Grant eligibility, means 12
or more semester units or the equivalent.

(g) “Expected family contribution,” with respect to an applicant,
shall be determined using the federal methodology pursuant to
subdivision (a) of Section 69506 (as established by Title IV of the
federal Higher Education Act of 1965, as amended (20 U.S.C. Sec.
1070 et seq.)) and applicable rules and regulations adopted by the
commission.

(h) “High school grade point average” means a grade point
average calculated on a 4.0 scale, using all academic coursework,
for the sophomore year, the summer following the sophomore
year, the junior year, and the summer following the junior year,
excluding physical education, reserve officer training corps
(ROTC), and remedial courses, and computed pursuant to
regulations of the commission. However, for high school graduates
who apply after their senior year, “high school grade point average”
includes senior year coursework.

(i) “Instructional program of not less than one academic year”
means a program of study that results in the award of an associate
or baccalaureate degree or certificate requiring at least 24 semester
units or the equivalent, or that results in eligibility for transfer from
a community college to a baccalaureate degree program.

(j) “Instructional program of not less than two academic years”
means a program of study that results in the award of an associate
or baccalaureate degree requiring at least 48 semester units or the
equivalent, or that results in eligibility for transfer from a
community college to a baccalaureate degree program.

(k) “Maximum household income and asset levels” means the
applicable household income and household asset levels for
participants, including new applicants and renewing recipients, in
the Cal Grant Program, as defined and adopted in regulations by
the commission for the 2001-02 academic year, which shall be
set pursuant to the following income and asset ceiling amounts:

 

CAL GRANT PROGRAM INCOME CEILINGS

 

 

	Cal Grant A, C, and T	Cal Grant B
Dependent and Independent students with dependents*
Family Size
Six or more	$74,100	$40,700
Five	$68,700	$37,700
Four	$64,100	$33,700
Three	$59,000	$30,300
Two	$57,600	$26,900
Independent
Single, no dependents	$23,500	$23,500
Married	$26,900	$26,900

 

*Applies to independent students with dependents other than a
spouse.

 

CAL GRANT PROGRAM ASSET CEILINGS

 

 

	Cal Grant A, C, and T	Cal Grant B
Dependent**	$49,600	$49,600
Independent	$23,600	$23,600

 

**Applies to independent students with dependents other than a
spouse.

 

The commission shall annually adjust the maximum household
income and asset levels based on the percentage change in the cost
of living within the meaning of paragraph (1) of subdivision (e)
of Section 8 of Article XIII B of the California Constitution. The
maximum household income and asset levels applicable to a
renewing recipient shall be the greater of the adjusted maximum
household income and asset levels or the maximum household
income and asset levels at the time of the renewing recipient’s
initial Cal Grant award. For a recipient who was initially awarded
a Cal Grant for an academic year before the 2011-12 academic
year, the maximum household income and asset levels shall be the
greater of the adjusted maximum household income and asset
levels or the 2010-11 academic year maximum household income
and asset levels. An applicant or renewal recipient who qualifies
to be considered under the simplified needs test established by
federal law for student assistance shall be presumed to meet the
asset level test under this section. Prior to disbursing any Cal Grant
funds, a qualifying institution shall be obligated, under the terms
of its institutional participation agreement with the commission,
to resolve any conflicts that may exist in the data the institution
possesses relating to that individual.

(l) (1) “Qualifying institution” means an institution that
complies with paragraphs (2) and (3) and is any of the following:

(A) A California private or independent postsecondary
educational institution that participates in the begin insert federal end insert Pell Grant
Program and in at least two of the following federal campus-based
student aid programs:

(i) Federal Work-Study.

(ii) Perkins Loan Program.

(iii)  begin insert Federal end insert Supplemental Educational Opportunity Grant
Program.

(B) A nonprofit institution headquartered and operating in
California that certifies to the commission that 10 percent of the
institution’s operating budget, as demonstrated in an audited
financial statement, is expended for purposes of institutionally
funded student financial aid in the form of grants, that demonstrates
to the commission that it has the administrative capacity to
administer the funds, that is accredited by the Western Association
of Schools and Colleges, and that meets any other state-required
criteria adopted by regulation by the commission in consultation
with the Department of Finance. A regionally accredited institution
that was deemed qualified by the commission to participate in the
Cal Grant Program for the 2000-01 academic year shall retain its
eligibility as long as it maintains its existing accreditation status.

(C) A California public postsecondary educational institution.

(2) (A) The institution shall provide information on where to
access California license examination passage rates for the most
recent available year from graduates of its undergraduate programs
leading to employment for which passage of a California licensing
examination is required, if that data is electronically available
through the Internet Web site of a California licensing or regulatory
agency. For purposes of this paragraph, “provide” may exclusively
include placement of an Internet Web site address labeled as an
access point for the data on the passage rates of recent program
graduates on the Internet Web site where enrollment information
is also located, on an Internet Web site that provides centralized
admissions information for postsecondary educational systems
with multiple campuses, or on applications for enrollment or other
program information distributed to prospective students.

(B) The institution shall be responsible for certifying to the
commission compliance with the requirements of subparagraph
(A).

(3) (A) The commission shall certify by October 1 of each year
the institution’s latest three-year cohort default rate and graduation
rate as most recently reported by the United States Department of
Education.

(B) For purposes of the 2011-12 academic year, an otherwise
qualifying institution with a three-year cohort default rate reported
by the United States Department of Education that is equal to or
greater than 24.6 percent shall be ineligible for initial and renewal
Cal Grant awards at the begin delete institution, except as provided in
subparagraph (F). end delete begin insert institution. end insert

(C) For purposes of the 2012-13 academic year, and every
academic year thereafter, an otherwise qualifying institution with
a three-year cohort default rate that is equal to or greater than 15.5
percent, as certified by the commission on October 1, 2011, and
every year thereafter, shall be ineligible for initial and renewal Cal
Grant awards at the begin delete institution, except as provided in subparagraph
(F). end delete begin insert institution. end insert

(D) (i) An otherwise qualifying institution that becomes
ineligible under this paragraph for initial and renewal Cal Grant
awards shall regain its eligibility for the academic year for which
it satisfies the requirements established in subparagraph (B), (C),
or begin delete (G) end delete begin insert (F) end insert , as applicable.

(ii) If the United States Department of Education corrects or
revises an institution’s three-year cohort default rate or graduation
rate that originally failed to satisfy the requirements established
in subparagraph (B), (C), or begin delete (G) end delete begin insert (F) end insert , as applicable, and the
correction or revision results in the institution’s three-year cohort
default rate or graduation rate satisfying those requirements, that
institution shall immediately regain its eligibility for the academic
year to which the corrected or revised three-year cohort default
rate or graduation rate would have been applied.

(E) An otherwise qualifying institution for which no three-year
cohort default rate or graduation rate has been reported by the
United States Department of Education shall be provisionally
eligible to participate in the Cal Grant Program until a three-year
cohort default rate or graduation rate has been reported for the
institution by the United States Department of Education.

begin delete end delete begin delete

(F) (i) An institution that is ineligible for initial and renewal
Cal Grant awards at the institution under subparagraph (B), (C),
or (G) shall be eligible for renewal Cal Grant awards for recipients
who were enrolled in the ineligible institution during the academic
year before the academic year for which the institution is ineligible
and who choose to renew their Cal Grant awards to attend the
ineligible institution. Cal Grant awards subject to this subparagraph
shall be reduced as follows:

end delete begin delete end delete begin delete end delete begin delete

(I) The maximum Cal Grant A and B awards specified in the
annual Budget Act shall be reduced by 20 percent.

end delete begin delete end delete begin delete end delete begin delete

(II) The reductions specified in this subparagraph shall not
impact access costs as specified in subdivision (b) of Section
69435.

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(ii) This subparagraph shall become inoperative on July 1, 2013.

end delete begin delete end delete begin delete

(G)

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begin insert (F) end insert  For purposes of the 2012-13 academic year, and every
academic year thereafter, an otherwise qualifying institution with
a graduation rate of 30 percent or less for students taking 150
percent or less of the expected time to complete degree
requirements, as reported by the United States Department of
Education and as certified by the commission pursuant to
subparagraph (A), shall be ineligible for initial and renewal Cal
Grant awards at the institution, except as provided for in
begin delete subparagraphs (F) and (I). end delete begin insert subparagraph (H). end insert

begin delete

(H)

end delete

begin insert (G) end insert  Notwithstanding any other law, the requirements of this
paragraph shall not apply to institutions with 40 percent or less of
undergraduate students borrowing federal student loans, using
information reported to the United States Department of Education
for the academic year two years before the year in which the
commission is certifying the three-year cohort default rate or
graduation rate pursuant to subparagraph (A).

begin delete

(I)

end delete

begin insert (H) end insert  Notwithstanding subparagraph begin delete (G), end delete begin insert (F), end insert an otherwise
qualifying institution with a three-year cohort default rate that is
less than 10 percent and a graduation rate above 20 percent for
students taking 150 percent or less of the expected time to complete
degree requirements, as certified by the commission pursuant to
subparagraph (A), shall remain eligible for initial and renewal Cal
Grant awards at the institution through the 2016-17 academic year.

begin delete

(J)

end delete

begin insert (I) end insert  The commission shall do all of the following:

(i) Notify initial Cal Grant recipients seeking to attend, or
attending, an institution that is ineligible for initial and renewal
Cal Grant awards under subparagraph (C) or begin delete (G) end delete begin insert (F) end insert that the
institution is ineligible for initial Cal Grant awards for the academic
year for which the student received an initial Cal Grant award.

(ii) Notify renewal Cal Grant recipients attending an institution
that is ineligible for initial and renewal Cal Grant awards at the
institution under subparagraph (C) or begin delete (G) end delete begin insert (F) end insert that the student’s
Cal Grant award will be reduced by 20 percent, or eliminated, as
appropriate, if the student attends the ineligible institution in an
academic year in which the institution is ineligible.

(iii) Provide initial and renewal Cal Grant recipients seeking to
attend, or attending, an institution that is ineligible for initial and
renewal Cal Grant awards at the institution under subparagraph
(C) or begin delete (G) end delete begin insert (F) end insert with a complete list of all California postsecondary
educational institutions at which the student would be eligible to
receive an unreduced Cal Grant award.

begin insert

(iv) (I) Establish an appeal process for an otherwise qualifying
institution that fails to satisfy the three-year cohort default rate
and graduation rate requirements in subparagraphs (C) and (F),
respectively.

end insert begin insert

(II) In assessing whether to grant an appeal, the commission
may consider cohort size and the likelihood of an otherwise
qualifying institution regaining eligibility in the academic year
next following the institution’s loss of eligibility.

end insert begin delete

(K)

end delete

begin insert (J) end insert  By January 1, 2013, the Legislative Analyst shall submit to
the Legislature a report on the implementation of this paragraph.
The report shall be prepared in consultation with the commission,
and shall include policy recommendations for appropriate measures
of default risk and other direct or indirect measures of quality or
effectiveness in educational institutions participating in the Cal
Grant Program, and appropriate scores for those measures. It is
the intent of the Legislature that appropriate policy and fiscal
committees review the requirements of this paragraph and consider
changes thereto.

(m) “Satisfactory academic progress” means those criteria
required by applicable federal standards published in Title 34 of
the Code of Federal Regulations. The commission may adopt
regulations defining “satisfactory academic progress” in a manner
that is consistent with those federal standards.

begin delete

SECTION 1.  

Section 6720 is added to the Labor Code, to read:

6720.  

(a) The Legislature finds and declares that the protection
of workers in the adult film industry is the responsibility of multiple
layers of government, with the department being responsible for
worker safety and the county being responsible for protecting the
public health. Therefore, this section shall not be construed to
prohibit a city, county, or city and county from implementing a
local ordinance regulating the adult film industry, provided that
nothing in the local ordinance contradicts any provision of this
section.

(b) For purposes of this section, the following definitions shall
apply:

(1) “Adult film” means any commercial film, video, multimedia,
or other recorded representation during the production of which
performers actually engage in sexual intercourse, including oral,
vaginal, or anal penetration.

(2) “Employee” means a person who is an employee or
independent contractor, regardless of whether the person is shown
in the adult film, who, during the production of the adult film,
performs sexual intercourse, including oral, vaginal, or anal
penetration.

(3) “Employer” means a company, partnership, corporation, or
individual engaged in the production of an adult film. There shall
be a rebuttable presumption that the name on the material for
commercial distribution is the employer unless there is evidence
to the contrary as demonstrated through contractual or employment
records.

(4) “Sexually transmitted disease” or “STD” means any infection
commonly spread by sexual conduct, including, but not limited
to, HIV/AIDS, gonorrhea, syphilis, chlamydia, hepatitis, genital
human papillomavirus infection, and genital herpes.

(c) An employer shall maintain engineering and work practice
controls sufficient to protect employees from exposure to blood
and any potentially infectious materials, in accordance with Section
5193 of Title 8 of the California Code of Regulations. Engineering
and work practice controls shall include, but are not limited to, the
following:

(1) Simulation of sex acts using acting, production, and
postproduction techniques.

(2) Provision of and required use of condoms and other
protective barriers whenever acts of vaginal or anal intercourse
are filmed.

(3) The provision of condom-safe water-based or silicone-based
lubricants to facilitate the use of condoms.

(4) Plastic and other disposable materials to clean up sets.

(5) Sharps containers for disposal of contaminated sharps,
including, but not limited to, any blades, wires, or broken glass.

(d) An employer shall maintain an exposure control plan in
accordance with Section 5193 of Title 8 of the California Code of
Regulations. An employer shall not be required to comply with
any provision related to establishing and maintaining a sharps
injury log, or any provision regarding regulated waste.

(e) An employer shall make available the hepatitis B vaccination
and all medical followup required by Section 5193 of Title 8 of
the California Code of Regulations, for any employee engaged in
the production of adult films, at the employer’s expense.

(f) An employer shall designate a custodian of records for
purposes of this section. A copy of the original production shall
be retained by the custodian of records.

(g) An employer shall pay the costs of required medical
monitoring, such as STD testing, and keep confidential employee
records.

(h) (1) An employer shall adopt, implement, maintain, and
update, as required, a written health and safety program that meets
the requirements of the Injury and Illness Prevention Program and
the bloodborne pathogens standard, described, respectively, in
Sections 3203 and 5193 of Title 8 of the California Code of
Regulations.

(2) An employer shall provide a training program in accordance
with Section 5193 of Title 8 of the California Code of Regulations.
The training requirements of this subdivision may be satisfied by
proof that the employee has received appropriate training at another
workplace or from an appropriate third party approved by the
department in the prior 12 months.

(i) This section shall not be construed to require condoms,
barriers, or other personal protective equipment to be visible in
the final product of an adult film.

(j) The Legislature finds and declares that screening for STDs
is a critical public health measure and should be employed
wherever possible, including the adult film industry. Therefore,
this section shall not be construed to impede or replace STD
screening of all employees, as defined in paragraph (2) of
subdivision (b), pursuant to STD screening protocols established
by the federal Centers for Disease Control and Prevention, the
State Department of Public Health, and the public health
department in the county where the filming occurs.

SEC. 2.  

The provisions of this act are severable. If any provision
of this act or its application is held invalid, that invalidity shall not
affect other provisions or applications that can be given effect
without the invalid provision or application.

SEC. 3  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

SEC. 4.  

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 protect workers in the adult film industry from an
imminent threat to public health as soon as possible, it is necessary
that this act take effect immediately.

end delete