Senate Bill No. 1304

Introduced by Committee on Judiciary (Senators Jackson (Chair), Anderson, Corbett, Evans, Leno, Monning, and Vidak)

February 21, 2014

An act to amend Sections 494.6, 2135.7, 2507, 2530.2, 2660, 3010.5, 3110, 4342, 8776, 18646, 19605.73, 22251.2, and 23826.12 of the Business and Professions Code, to amend Sections 56.30, 1102.6, and 1788.58 of the Civil Code, to amend Sections 425.16, 580b, 580d, 1282.4, and 1530 of the Code of Civil Procedure, to amend Sections 402.5, 14001, and 14305 of the Corporations Code, to amend Sections 221.5, 2576, 8151, 8152, 8155, 8482.3, 20092, 32282.1, 35182.5, 41329.575, 42238.03, 42283, 44212, 44956, 49085, 49557.2, 60643, 60811.4, 66746, 66762.5, 78230, 92493, and 99301 of the Education Code, to amend Sections 2187, 3007.8, 5001, 19284, and 19290 of the Elections Code, to amend Sections 914, 6383, and 8730 of the Family Code, to amend Section 12002 of, and to repeal Section 8664.2 of, the Fish and Game Code, to amend Sections 24001, 24011, 24012, 43003, 47060, 47061, and 81006 of the Food and Agricultural Code, to amend Sections 905.2, 1043, 1097.1, 9402, 11507, 6588.7, 12011.5, 12012.61, 13403, 13978.8, 14528.56, 15920, 41805, 53313, 57118, and 70377 of the Government Code, to amend Sections 1275.3, 1357.51, 1367.006, 1375.9, 1562.3, 1796.24, 11379, 11751, 25249.7, 25269.1, 121022, 121026, 123367, and 130301 of the Health and Safety Code, to amend Sections 395, 791.29, 935.8, 1216.1, 10133.4, 10232.8, 10234.93, 10753.05, 10961, and 10965.11 of the Insurance Code, to amend Sections 139.2, 139.5, 230.4, 1773.1, 2055, 4600, and 5502 of the Labor Code, to amend Sections 935 and 952 of the Military and Veterans Code, to amend Sections 136.2, 145.5, 273.5, 289.6, 311.11, 311.12, 326.3, 487a, 519, 646.91, 647, 830.3, 1208, 1275, 2053.1, 6027, 7442, 11165.15, 13701, and 16970 of the Penal Code, to amend Sections 215, 2574, 6325, 9702, and 9730 of, and to amend the heading of Chapter 4 (commencing with Section 3600) of Part 8 of Division 4 of, the Probate Code, to amend Section 20133 of the Public Contract Code, to amend Sections 6217.6, 25722.8, and 30620 of, and to amend and renumber Section 6717.6.1 of, the Public Resources Code, to amend Sections 379.8, 589, 740.5, 741, 747.6, 769, 984.5, 987, 2120, 2827.10, 4661, 100602.4, and 170056 of the Public Utilities Code, to amend Sections 62, 2615.6, 17053.57, 18796, 19136, 19164, and 19555 of, and to amend and renumber Section 20125 of, the Revenue and Taxation Code, to amend Sections 1653.5, 2810.2, 12801, 12801.9, 14601.2, 15210, 15215, 21251, 21260, and 27375 of, and to amend and renumber the heading of Article 5 (commencing with Section 21250) of Chapter 1 of Division 11 of, the Vehicle Code, to amend Sections 304.7, 355, 366.31, 726, 4363, 4512, 4571, 4685.8, 5848.5, 6604.9, 8103, 11400, 11450.025, 14005.30, 14005.65, 14007.1, 14132.277, 14182.18, 14186.1, 14186.36, 14701, 17603, 17604, 17606.10, 17612.3, 17612.5, 17613.2, 17613.3, 17613.4, 18259.7, and 18901 of the Welfare and Institutions Code, to amend Section 2 of Chapter 489 of the Statutes of 2001, to amend Section 34 of Chapter 37 of the Statutes of 2013, to amend Sections 1 and 5 of Chapter 391 of the Statutes of 2013, and to amend Section 2 of Chapter 653 of the Statutes of 2013, relating to the maintenance of the codes.

LEGISLATIVE COUNSEL’S DIGEST

SB 1304, as introduced, Committee on Judiciary. Maintenance of the codes.

Existing law directs the Legislative Counsel to advise the Legislature from time to time as to legislation necessary to maintain the codes.

This bill would make nonsubstantive changes in various provisions of law to effectuate the recommendations made by the Legislative Counsel to the Legislature.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

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

SECTION 1.  

Section 494.6 of the Business and Professions
Code is amended to read:

494.6.  

(a) A business license regulated by this code may be
subject to suspension or revocation if the licensee has been
determined by the Labor Commissioner or the court to have
violated subdivision (b) of Section 244 of the Labor Code and the
court or Labor Commissioner has taken into consideration any
harm such begin insert a end insert suspension or revocation would cause to employees
of the licensee, as well as the good faith efforts of the licensee to
resolve any alleged violations after receiving notice.

(b) Notwithstanding subdivision (a), a licensee of an agency
within the Department of Consumer Affairs who has been found
by the Labor Commissioner or the court to have violated
subdivision (b) of Section 244 of the Labor Code may be subject
to disciplinary action by his or her respective licensing agency.

(c) An employer shall not be subject to suspension or revocation
under this section for requiring a prospective or current employee
to submit, within three business days of the first day of work for
pay, an I-9 Employment Eligibility Verification form.

SEC. 2.  

Section 2135.7 of the Business and Professions Code
is amended to read:

2135.7.  

(a) Upon review and recommendation, the board may
determine that an applicant for a physician and surgeon’s certificate
who acquired his or her medical education or a portion thereof at
a foreign medical school that is not recognized or has been
previously disapproved by the board is eligible for a physician and
surgeon’s certificate if the applicant meets all of the following
criteria:

(1) Has successfully completed a resident course of medical
education leading to a degree of medical doctor equivalent to that
specified in Sections 2089 to 2091.2, inclusive.

(2) (A) (i) For an applicant who acquired any part of his or her
medical education from an unrecognized foreign medical school,
he or she holds an unlimited and unrestricted license as a physician
and surgeon in another state, a federal territory, or a Canadian
province and has held that license and continuously practiced for
a minimum of 10 years prior to the date of application.

(ii) For an applicant who acquired any part of his or her
professional instruction from a foreign medical school that was
disapproved by the board at the time he or she attended the school,
he or she holds an unlimited and unrestricted license as a physician
and surgeon in another state, a federal territory, or a Canadian
province and has held that license and continuously practiced for
a minimum of 12 years prior to the date of application.

(B) For the purposes of clauses (i) and (ii) of subparagraph (A),
the board may combine the period of time that the applicant has
held an unlimited and unrestricted license in other states, federal
territories, or Canadian provinces and continuously practiced
therein, but each applicant under this section shall have a minimum
of two years continuous licensure and practice in a single state,
federal territory, or Canadian province. For purposes of this
paragraph, continuous licensure and practice includes any
postgraduate training after 24 months in a postgraduate training
program that is accredited by the Accreditation Council for
Graduate Medical Education (ACGME) or postgraduate training
completed in Canada that is accredited by the Royal College of
Physicians and Surgeons of Canada (RCPSC).

(3) Is certified by a specialty board that is a member board of
the American Board of Medical Specialties.

(4) Has successfully taken and passed the examinations
described in Article 9 (commencing with Section 2170).

(5) Has not been the subject of a disciplinary action by a medical
licensing authority or of adverse judgments or settlements resulting
from the practice of medicine that the board determines constitutes
a pattern of negligence or incompetence.

(6) Has successfully completed three years of approved
postgraduate training. The postgraduate training required by this
paragraph shall have been obtained in a postgraduate training
program accredited by the ACGME or postgraduate training
completed in Canada that is accredited by the RCPSC.

(7) Is not subject to denial of licensure under Division 1.5
(commencing with Section 475) or Article 12 (commencing with
Section 2220).

(8) Has not held a healing arts license and been the subject of
disciplinary action by a healing arts board of this state or by another
state, federal territory, or Canadian province.

(b) The board may adopt regulations to establish procedures for
accepting transcripts, diplomas, and other supporting information
and records when the originals are not available due to
circumstances outside the applicant’s control. The board may also
adopt regulations authorizing the substitution of additional specialty
board certifications for years of practice or licensure when
considering the certification for a physician and surgeon pursuant
to this section.

(c) This section shall not apply to a person seeking to participate
in a program described in begin delete Sections end delete begin insert Section end insert 2072, 2073, 2111, 2112,
2113, 2115, or 2168, or seeking to engage in postgraduate training
in this state.

SEC. 3.  

Section 2507 of the Business and Professions Code is
amended to read:

2507.  

(a) The license to practice midwifery authorizes the
holder to attend cases of normal pregnancy and childbirth, as
defined in paragraph (1) of subdivision (b), and to provide prenatal,
intrapartum, and postpartum care, including family-planning care,
for the mother, and immediate care for the newborn.

(b) As used in this article, the practice of midwifery constitutes
the furthering or undertaking by any licensed midwife to assist a
woman in childbirth as long as progress meets criteria accepted
as normal.

(1) Except as provided in paragraph (2), a licensed midwife
shall only assist a woman in normal pregnancy and childbirth,
which is defined as meeting all of the following conditions:

(A) There is an absence of both of the following:

(i) Any preexisting maternal disease or condition likely to affect
the pregnancy.

(ii) Significant disease arising from the pregnancy.

(B) There is a singleton fetus.

(C) There is a cephalic presentation.

(D) The gestational age of the fetus is greater than 370⁄7 weeks
and less than 420⁄7 completed weeks of pregnancy.

(E) Labor is spontaneous or induced in an outpatient setting.

(2) If a potential midwife client meets the conditions specified
in subparagraphs (B) to (E), inclusive, of paragraph (1), but fails
to meet the conditions specified in subparagraph (A) of paragraph
(1), and the woman still desires to be a client of the licensed
midwife, the licensed midwife shall provide the woman with a
referral for an examination by a physician and surgeon trained in
obstetrics and gynecology. A licensed midwife may assist the
woman in pregnancy and childbirth only if an examination by a
physician and surgeon trained in obstetrics and gynecology is
obtained and the physician and surgeon who examined the woman
determines that the risk factors presented by her disease or
condition are not likely to significantly affect the course of
pregnancy and childbirth.

(3) The board shall adopt regulations pursuant to the
Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part of 1 of Division 3 of Title 2 of the
Government Code) specifying the conditions described in
subparagraph (A) of paragraph (1).

(c) (1) If at any point during begin delete a end delete pregnancy, childbirth, or
postpartum care a client’s condition deviates from normal, the
licensed midwife shall immediately refer or transfer the client to
a physician and surgeon. The licensed midwife may consult and
remain in consultation with the physician and surgeon after the
referral or transfer.

(2) If a physician and surgeon determines that the client’s
condition or concern has been resolved such that the risk factors
presented by a woman’s disease or condition are not likely to
significantly affect the course of pregnancy or childbirth, the
licensed midwife may resume primary care of the client and resume
assisting the client during her pregnancy, childbirth, or postpartum
care.

(3) If a physician and surgeon determines the client’s condition
or concern has not been resolved as specified in paragraph (2), the
licensed midwife may provide concurrent care with a physician
and surgeon and, if authorized by the client, be present during the
labor and childbirth, and resume postpartum care, if appropriate.
A licensed midwife shall not resume primary care of the client.

(d) A licensed midwife shall not provide or continue to provide
midwifery care to a woman with a risk factor that will significantly
affect the course of pregnancy and childbirth, regardless of whether
the woman has consented to this care or refused care by a physician
or surgeon, except as provided in paragraph (3) of subdivision (c).

(e) The practice of midwifery does not include the assisting of
childbirth by any artificial, forcible, or mechanical means, nor the
performance of any version of these means.

(f) A midwife is authorized to directly obtain supplies and
devices, obtain and administer drugs and diagnostic tests, order
testing, and receive reports that are necessary to his or her practice
of midwifery and consistent with his or her scope of practice.

(g) This article does not authorize a midwife to practice medicine
or to perform surgery.

SEC. 4.  

Section 2530.2 of the Business and Professions Code
is amended to read:

2530.2.  

As used in this chapter, unless the context otherwise
requires:

(a) “Board” means the Speech-Language Pathology and
Audiology and Hearing Aid Dispensers Board.

(b) “Person” means any individual, partnership, corporation,
limited liability company, or other organization or combination
thereof, except that only individuals can be licensed under this
chapter.

(c) A “speech-language pathologist” is a person who practices
speech-language pathology.

(d) The practice of speech-language pathology means all of the
following:

(1) The application of principles, methods, instrumental
procedures, and noninstrumental procedures for measurement,
testing, screening, evaluation, identification, prediction, and
counseling related to the development and disorders of speech,
voice, language, or swallowing.

(2) The application of principles and methods for preventing,
planning, directing, conducting, and supervising programs for
habilitating, rehabilitating, ameliorating, managing, or modifying
disorders of speech, voice, language, or swallowing in individuals
or groups of individuals.

(3) Conducting hearing screenings.

(4) Performing suctioning in connection with the scope of
practice described in paragraphs (1) and (2), after compliance with
a medical facility’s training protocols on suctioning procedures.

(e) (1) Instrumental procedures referred to in subdivision (d)
are the use of rigid and flexible endoscopes to observe the
pharyngeal and laryngeal areas of the throat in order to observe,
collect data, and measure the parameters of communication and
swallowing as well as to guide communication and swallowing
assessment and therapy.

(2) Nothing in this subdivision shall be construed as a diagnosis.
Any observation of an abnormality shall be referred to a physician
and surgeon.

(f) A licensed speech-language pathologist shall not perform a
flexible fiber optic nasendoscopic procedure unless he or she has
received written verification from an otolaryngologist certified by
the American Board of Otolaryngology that the speech-language
pathologist has performed a minimum of 25 flexible fiber optic
nasendoscopic procedures and is competent to perform these
procedures. The speech-language pathologist shall have this written
verification on file and readily available for inspection upon request
by the board. A speech-language pathologist shall pass a flexible
fiber optic nasendoscopic instrument only under the direct
authorization of an otolaryngologist certified by the American
Board of Otolaryngology and the supervision of a physician and
surgeon.

(g) A licensed speech-language pathologist shall only perform
flexible endoscopic procedures described in subdivision (e) in a
setting that requires the facility to have protocols for emergency
medical backup procedures, including a physician and surgeon or
other appropriate medical professionals being readily available.

(h) “Speech-language pathology aide” means any person
meeting the minimum requirements established by the board, who
works directly under the supervision of a speech-language
pathologist.

(i) (1) “Speech-language pathology assistant” means a person
who meets the academic and supervised training requirements set
forth by the board and who is approved by the board to assist in
the provision of speech-language pathology under the direction
and supervision of a speech-language pathologist who shall be
responsible for the extent, kind, and quality of the services provided
by the speech-language pathology assistant.

(2) The supervising speech-language pathologist employed or
contracted for by a public school may hold a valid and current
license issued by the board, a valid, current, and professional clear
clinical or rehabilitative services credential in language, speech,
and hearing issued by the Commission on Teacher Credentialing,
or other credential authorizing service in language, speech, and
hearing issued by the Commission on Teacher Credentialing that
is not issued on the basis of an emergency permit or waiver of
requirements. For purposes of this paragraph, a “clear” credential
is a credential that is not issued pursuant to a waiver or emergency
permit and is as otherwise defined by the Commission on Teacher
Credentialing. Nothing in this section referring to credentialed
supervising speech-language pathologists expands existing
exemptions from licensing pursuant to Section 2530.5.

(j) An “audiologist” is one who practices audiology.

(k) “The practice of audiology” means the application of
principles, methods, and procedures of measurement, testing,
appraisal, prediction, consultation, counseling, begin insert and end insert instruction
related to auditory, vestibular, and related functions and the
modification of communicative disorders involving speech,
language, auditory behavior begin insert , end insert or other aberrant behavior resulting
from auditory dysfunction; and the planning, directing, conducting,
supervising, or participating in programs of identification of
auditory disorders, hearing conservation, cerumen removal, aural
habilitation, and rehabilitation, including begin delete , end delete hearing aid
recommendation and evaluation procedures begin insert , end insert including, but not
limited to, specifying amplification requirements and evaluation
of the results thereof, auditory training, and speech reading, and
the selling of hearing aids.

(l) A “dispensing audiologist” is a person who is authorized to
sell hearing aids pursuant to his or her audiology license.

(m) “Audiology aide” means any person meeting the minimum
requirements established by the board. An audiology aid may not
perform any function that constitutes the practice of audiology
unless he or she is under the supervision of an audiologist. The
board may by regulation exempt certain functions performed by
an industrial audiology aide from supervision provided that his or
her employer has established a set of procedures or protocols that
the aide shall follow in performing these functions.

(n) “Medical board” means the Medical Board of California.

(o) A “hearing screening” performed by a speech-language
pathologist means a binary puretone screening at a preset intensity
level for the purpose of determining if the screened individuals
are in need of further medical or audiological evaluation.

(p) “Cerumen removal” means the nonroutine removal of
cerumen within the cartilaginous ear canal necessary for access in
performance of audiological procedures that shall occur under
physician and surgeon supervision. Cerumen removal, as provided
by this section, shall only be performed by a licensed audiologist.
Physician and surgeon supervision shall not be construed to require
the physical presence of the physician, but shall include all of the
following:

(1) Collaboration on the development of written standardized
protocols. The protocols shall include a requirement that the
supervised audiologist immediately refer to an appropriate
physician any trauma, including skin tears, bleeding, or other
pathology of the ear discovered in the process of cerumen removal
as defined in this subdivision.

(2) Approval by the supervising physician of the written
standardized protocol.

(3) The supervising physician shall be within the general
vicinity, as provided by the physician-audiologist protocol, of the
supervised audiologist and available by telephone contact at the
time of cerumen removal.

(4) A licensed physician and surgeon may not simultaneously
supervise more than two audiologists for purposes of cerumen
removal.

SEC. 5.  

Section 2660 of the Business and Professions Code is
amended to read:

2660.  

Unprofessional conduct constitutes grounds for citation,
discipline, denial of a license, or issuance of a probationary license.
The board may, after the conduct of appropriate proceedings under
the Administrative Procedure Act (Chapter 4.5 (commencing with
Section 11400) of Part 1 of Division 3 of Title 2 of the Government
Code), issue a citation, impose discipline, deny a license, suspend
for not more than 12 months, or revoke, or impose probationary
conditions upon any license issued under this chapter for
unprofessional conduct that includes, in addition to other provisions
of this chapter, but is not limited to, the following:

(a) Violating or attempting to violate, directly or indirectly,
assisting in or abetting the violation of, or conspiring to violate
any provision of this chapter, any regulations duly adopted under
this chapter, or the Medical Practice Act (Chapter 5 (commencing
with Section 2000)).

(b) Advertising in violation of Section 17500.

(c) Obtaining or attempting to obtain a license by fraud or
misrepresentation.

(d) Practicing or offering to practice beyond the scope of practice
of physical therapy.

(e) Conviction of a crime that substantially relates to the
qualifications, functions, or duties of a physical therapist or
physical therapist assistant. The record of conviction or a certified
copy thereof shall be conclusive evidence of that conviction.

(f) Unlawful possession or use of, or conviction of a criminal
offense involving, a controlled substance as defined in Division
10 (commencing with Section 11000) of the Health and Safety
Code, or any dangerous drug as defined in Article 2 (commencing
with Section 4015) of Chapter 9, as follows:

(1) Obtaining or possessing in violation of law, or except as
directed by a licensed physician and surgeon, dentist, or podiatrist,
administering to himself or herself, or furnishing or administering
to another, any controlled begin delete substances end delete begin insert substance end insert or any dangerous
drug.

(2) Using any controlled substance or any dangerous drug.

(3) Conviction of a criminal offense involving the consumption
or self-administration of, or the possession of, or falsification of
a record pertaining to, any controlled substance or any dangerous
drug, in which event the record of the conviction is conclusive
evidence thereof.

(g) Failure to maintain adequate and accurate records relating
to the provision of services to his or her patients.

(h) Gross negligence or repeated acts of negligence in practice
or in the delivery of physical therapy care.

(i) Aiding or abetting any person to engage in the unlawful
practice of physical therapy.

(j) The commission of any fraudulent, dishonest, or corrupt act
that is substantially related to the qualifications, functions, or duties
of a physical therapist or physical therapist assistant.

(k) Except for good cause, the knowing failure to protect patients
by failing to follow infection control guidelines of the board,
thereby risking transmission of bloodborne infectious diseases
from licensee to patient, from patient to patient, and from patient
to licensee. In administering this subdivision, the board shall
consider referencing the standards, regulations, and guidelines of
the State Department of Public Health developed pursuant to
Section 1250.11 of the Health and Safety Code and the standards,
regulations, and guidelines pursuant to the California Occupational
Safety and Health Act of 1973 (Part 1 (commencing with Section
6300) of Division 5 of the Labor Code) for preventing the
transmission of HIV, hepatitis B, and other bloodborne pathogens
in health care settings. As necessary, the board shall consult with
the Medical Board of California, the California Board of Podiatric
Medicine, the Dental Board of California, the Board of Registered
Nursing, and the Board of Vocational Nursing and Psychiatric
Technicians of the State of California, to encourage appropriate
consistency in the implementation of this subdivision.

(l) The commission of verbal abuse or sexual harassment.

(m) Engaging in sexual misconduct or violating Section 726.

(n) Permitting a physical therapist assistant or physical therapy
aide under one’s supervision or control to perform, or permitting
the physical therapist assistant or physical therapy aide to hold
himself or herself out as competent to perform, professional
services beyond the level of education, training, and experience
of the physical therapist assistant or aide.

(o) The revocation, suspension, or other discipline, restriction,
or limitation imposed by another state upon a license or certificate
to practice physical therapy issued by that state, or the revocation,
suspension, or restriction of the authority to practice physical
therapy by any agency of the federal government.

(p) Viewing a completely or partially disrobed patient in the
course of treatment if the viewing is not necessary to patient
evaluation or treatment under current standards.

(q) Engaging in any act in violation of Section 650, 651, or
654.2.

(r) Charging a fee for services not performed.

(s) Misrepresenting documentation of patient care or deliberate
falsifying of patient records.

(t) Except as otherwise allowed by law, the employment of
runners, cappers, steerers, or other persons to procure patients.

(u) The willful, unauthorized violation of professional
confidence.

(v) Failing to maintain confidentiality, except as otherwise
required or permitted by law, of all information that has been
received from a patient in confidence during the course of treatment
and all information about the patient that is obtained from tests or
other means.

(w) Habitual intemperance.

(x) Failure to comply with the provisions of Section 2620.1.

SEC. 6.  

Section 3010.5 of the Business and Professions Code
is amended to read:

3010.5.  

(a) There is in the Department of Consumer Affairs
a State Board of Optometry in which the enforcement of this
chapter is vested. The board consists of 11 members, five of whom
shall be public members.

Six members of the board shall constitute a quorum.

(b) The board shall, with respect to conducting investigations,
inquiries, and disciplinary actions and proceedings, have the
authority previously vested in the board as created pursuant to
begin insert former end insert Section 3010. The board may enforce any disciplinary
actions undertaken by that board.

(c) This section shall remain in effect only until January 1, 2018,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2018, deletes or extends that date.
Notwithstanding any other law, the repeal of this section renders
the board subject to review by the appropriate policy committees
of the Legislature.

SEC. 7.  

Section 3110 of the Business and Professions Code is
amended to read:

3110.  

The board may take action against any licensee who is
charged with unprofessional conduct, and may deny an application
for a license if the applicant has committed unprofessional conduct.
In addition to other provisions of this article, unprofessional
conduct includes, but is not limited to, the following:

(a) Violating or attempting to violate, directly or indirectly
assisting in or abetting the violation of, or conspiring to violate
any provision of this chapter or any of the rules and regulations
adopted by the board pursuant to this chapter.

(b) Gross negligence.

(c) Repeated negligent acts. To be repeated, there must be two
or more negligent acts or omissions.

(d) Incompetence.

(e) The commission of fraud, misrepresentation, or any act
involving dishonesty or corruption, that is substantially related to
the qualifications, functions, or duties of an optometrist.

(f) Any action or conduct that would have warranted the denial
of a license.

(g) The use of advertising relating to optometry that violates
Section 651 or 17500.

(h) Denial of licensure, revocation, suspension, restriction, or
any other disciplinary action against a health care professional
license by another state or territory of the United States, by any
other governmental agency, or by another California health care
professional licensing board. A certified copy of the decision or
judgment shall be conclusive evidence of that action.

(i) Procuring his or her license by fraud, misrepresentation, or
mistake.

(j) Making or giving any false statement or information in
connection with the application for issuance of a license.

(k) Conviction of a felony or of any offense substantially related
to the qualifications, functions, and duties of an optometrist, in
which event the record of the conviction shall be conclusive
evidence thereof.

(l) Administering to himself or herself any controlled substance
or using any of the dangerous drugs specified in Section 4022, or
using alcoholic beverages to the extent, or in a manner, as to be
dangerous or injurious to the person applying for a license or
holding a license under this chapter, or to any other person, or to
the public, or, to the extent that the use impairs the ability of the
person applying for or holding a license to conduct with safety to
the public the practice authorized by the license, or the conviction
of a misdemeanor or felony involving the use, consumption, or
self administration of any of the substances referred to in this
subdivision, or any combination thereof.

(m) (1) Committing or soliciting an act punishable as a sexually
related crime, if that act or solicitation is substantially related to
the qualifications, functions, or duties of an optometrist.

(2) Committing any act of sexual abuse, misconduct, or relations
with a patient. The commission of and conviction for any act of
sexual abuse, sexual misconduct, or attempted sexual misconduct,
whether or not with a patient, shall be considered a crime
substantially related to the qualifications, functions, or duties of a
licensee. This paragraph shall not apply to sexual contact between
any person licensed under this chapter and his or her spouse or
person in an equivalent domestic relationship when that licensee
provides optometry treatment to his or her spouse or person in an
equivalent domestic relationship.

(3) Conviction of a crime that begin delete currently end delete requires the person to
register as a sex offender pursuant to begin delete Section 290 end delete begin insert Chapter 5.5
(commencing with Section 290) of Title 9 of Part 1 end insert of the Penal
Code. A conviction within the meaning of this paragraph means
a plea or verdict of guilty or a conviction following a plea of nolo
contendere. A conviction described in this paragraph shall be
considered a crime substantially related to the qualifications,
functions, or duties of a licensee.

(n) Repeated acts of excessive prescribing, furnishing begin insert , end insert or
administering of controlled substances or dangerous drugs specified
in Section 4022, or repeated acts of excessive treatment.

(o) Repeated acts of excessive use of diagnostic or therapeutic
procedures, or repeated acts of excessive use of diagnostic or
treatment facilities.

(p) The prescribing, furnishing, or administering of controlled
substances or drugs specified in Section 4022, or treatment without
a good faith prior examination of the patient and optometric reason.

(q) The failure to maintain adequate and accurate records
relating to the provision of services to his or her patients.

(r) Performing, or holding oneself out as being able to perform,
or offering to perform, any professional services beyond the scope
of the license authorized by this chapter.

(s) The practice of optometry without a valid, unrevoked,
unexpired license.

(t) The employing, directly or indirectly, of any suspended or
unlicensed optometrist to perform any work for which an optometry
license is required.

(u)  Permitting another person to use the licensee’s optometry
license for any purpose.

(v) Altering with fraudulent intent a license issued by the board,
or using a fraudulently altered license, permit certification or any
registration issued by the board.

(w) Except for good cause, the knowing failure to protect
patients by failing to follow infection control guidelines of the
board, thereby risking transmission of blood borne infectious
diseases from optometrist to patient, from patient to patient, or
from patient to optometrist. In administering this subdivision, the
board shall consider the standards, regulations, and guidelines of
the State Department of begin delete Health Services end delete begin insert Public Health end insert developed
pursuant to Section 1250.11 of the Health and Safety Code and
the standards, guidelines, and regulations pursuant to the California
Occupational Safety and Health Act of 1973 (Part 1 (commencing
with Section 6300) of Division 5 of the Labor Code) for preventing
the transmission of HIV, hepatitis B, and other blood borne
pathogens in health care settings. As necessary, the board may
consult with the Medical Board of California, the Board of
Podiatric Medicine, the Board of Registered Nursing, and the
Board of Vocational Nursing and Psychiatric Technicians, to
encourage appropriate consistency in the implementation of this
subdivision.

(x) Failure or refusal to comply with a request for the clinical
records of a patient, that is accompanied by that patient’s written
authorization for release of records to the board, within 15 days
of receiving the request and authorization, unless the licensee is
unable to provide the documents within this time period for good
cause.

(y)  Failure to refer a patient to an appropriate physician in either
of the following circumstances:

(1) Where an examination of the eyes indicates a substantial
likelihood of any pathology that requires the attention of that
physician.

(2) As required by subdivision (c) of Section 3041.

SEC. 8.  

Section 4342 of the Business and Professions Code is
amended to read:

4342.  

(a) The board may institute any action or actions as may
be provided by law and that, in its discretion, are necessary, to
prevent the sale of pharmaceutical preparations and drugs that do
not conform to the standard and tests as to quality and strength,
provided in the latest edition of the United States Pharmacopoeia
or the National Formulary, or that violate any provision of the
Sherman Food, Drug begin insert , end insert and Cosmetic Law (Part 5 (commencing
with Section 109875) of Division 104 of the Health and Safety
Code).

(b) Any knowing or willful violation of any regulation adopted
pursuant to Section 4006 shall be subject to punishment in the
same manner as is provided in Sections begin delete 4336 and end delete 4321 begin insert and 4336 end insert .

SEC. 9.  

Section 8776 of the Business and Professions Code is
amended to read:

8776.  

(a) A licensee shall report to the board in writing the
occurrence of any of the following events that occurred on or after
January 1, 2008, within 90 days of the date the licensee has
knowledge of the event:

(1) The conviction of the licensee of any felony.

(2) The conviction of the licensee of any other crime that is
substantially related to the qualifications, functions, and duties of
a licensed land surveyor.

(3) A civil action settlement or administrative action resulting
in a settlement against the licensee in any action alleging fraud,
deceit, misrepresentation, breach or violation of contract,
negligence, incompetence, or recklessness by the licensee in the
practice of land surveying if the amount or value of the settlement
is greater than fifty thousand dollars ($50,000).

(4) A civil action judgment or binding arbitration award begin insert , end insert or
administrative action resulting in a judgment or binding arbitration
award begin insert , end insert against the licensee in any action alleging fraud, deceit,
misrepresentation, breach or violation of contract, negligence,
incompetence, or recklessness by the licensee in the practice of
land surveying if the amount or value of the judgment or binding
arbitration award is twenty-five thousand dollars ($25,000) or
greater.

(b) The report required by subdivision (a) shall be signed by
the licensee and set forth the facts that constitute the reportable
event. If the reportable event involves the action of an
administrative agency or court, the report shall set forth the title
of the matter, court or agency name, docket number, and the dates
the reportable event occurred.

(c) A licensee shall promptly respond to oral or written inquiries
from the board concerning the reportable events, including inquiries
made by the board in conjunction with license renewal.

(d) Nothing in this section shall impose a duty upon any licensee
to report to the board the occurrence of any of the events set forth
in subdivision (a) either by or against any other licensee.

(e) Failure of a licensee to report to the board in the time and
manner required by this section shall be grounds for disciplinary
action.

(f) For purposes of this section, a conviction includes the initial
plea, verdict, or finding of guilt; a plea of no contest; or
pronouncement of sentence by a trial court even though the
conviction may not be final or sentence actually imposed until all
appeals are exhausted.

SEC. 10.  

Section 18646 of the Business and Professions Code
is amended to read:

18646.  

(a) This chapter applies to all amateur boxing,
wrestling, and full contact martial arts contests.

(b) The commission may, however, authorize one or more
nonprofit boxing, wrestling, or martial arts clubs, organizations,
or sanctioning bodies, upon approval of its bylaws, to administer
its rules for amateur boxing, wrestling, and full contact martial
arts contests, and may, therefore, waive direct commission
application of laws and rules, including licensure, subject to the
commission’s affirmative finding that the standards and
enforcement of similar rules by a club begin delete or end delete begin insert , end insert organization begin insert , or
sanctioning body end insert meet or exceed the safety and fairness standards
of the commission. The commission shall review the performance
of any such club, organization, or sanctioning body annually.

(c) Every contest subject to this section shall be preceded by a
physical examination, specified by the commission, of every
contestant. A physician and surgeon shall be in attendance at the
contest. There shall be a medical insurance program satisfactory
to the commission provided by an amateur club, organization, or
sanctioning body in effect covering all contestants. The commission
shall review compliance with these requirements.

(d) Any club, organization, or sanctioning body that conducts,
holds, or gives amateur contests pursuant to this section, which
collects money for the event, shall furnish a written financial report
of receipts and disbursements within 90 days of the event.

(e) The commission has the right to have present without charge
or restriction such representatives as are necessary to obtain
compliance with this section.

(f) The commission may require any additional notices and
reports it deems necessary to enforce the provisions of this section.

(g) The commission, at its discretion, may rescind previously
approved authorization of a nonprofit boxing, wrestling, or martial
arts club, organization, or sanctioning body to administer its rules
for amateur boxing, wrestling, and full contact martial arts contests.

SEC. 11.  

Section 19605.73 of the Business and Professions
Code is amended to read:

19605.73.  

(a) Thoroughbred racing associations, fairs, and the
organization responsible for contracting with thoroughbred racing
associations and fairs with respect to the conduct of racing
meetings, may form a private, statewide marketing organization
to market and promote thoroughbred and fair horse racing,
including, but not limited to, the establishment and maintenance
of an Internet Web site featuring California thoroughbred and fair
racing, the establishment and administration of players incentive
programs for those who wager on thoroughbred association and
fair races, and promotional activities at satellite wagering facilities
to increase their attendance and handle. While the promotional
activities at satellite wagering facilities shall be funded by the
marketing organization, they shall be implemented and coordinated
by representatives of the satellite wagering facilities and the
thoroughbred racing associations or fairs then conducting a live
race meet. The organization shall consist of the following members:
two members, one from the northern zone and one from the
combined central and southern zones, appointed by the
thoroughbred racetracks; two members, one from the northern
zone and one from the combined central and southern zones,
appointed by the owners’ organization responsible for contracting
with associations and fairs with respect to the conduct of racing
meetings; and two members, one from the northern zone and one
from the combined central and southern zones, appointed by the
organization representing racing and satellite fairs.

(b) The marketing organization formed pursuant to subdivision
(a) shall, by November 1 of each year, submit a written report to
the board on a statewide marketing and promotion plan for the
upcoming calendar year. In addition, the organization shall annually
present to the board at the board’s November meeting a verbal
report on the statewide marketing and promotion plan for the
upcoming calendar year. The plan shall be implemented as
determined by the organization. The organization shall receive
input from all interested industry participants and may utilize
outside consultants.

(c) In addition to the distributions specified in subdivisions (a)
and (b) of Section 19605.7, subdivisions (a) and (b) of Section
19605.71, and Section 19605.72, for thoroughbred and fair
meetings only, from the amount that would normally be available
for commissions and purses, an amount not to exceed 0.25 percent
of the total amount handled by each satellite wagering facility shall
be distributed to the marketing organization formed pursuant to
subdivision (a) for the purposes set forth begin delete therein end delete begin insert in subdivision
(a) end insert . The amounts initially distributed to the marketing organization
formed pursuant to subdivision (a) shall be 0.2 percent of the total
amount handled by satellite wagering facilities for thoroughbred
and fair meetings only. The amount distributable to the marketing
organization may be adjusted by the board, in its discretion.
However, the adjusted amounts begin delete may end delete begin insert shall end insert not exceed an aggregate
of 0.25 percent of the total amount handled by satellite wagering
facilities for thoroughbred and fair meetings only. begin delete Any of the
promotion end delete begin insert Promotion end insert funds that are not expended in the year in
which they are collected may be expended in the following year.
If promotion funds expended in any one year exceed the amount
collected for that year, the funds expended in the following year
shall be reduced by the excess amount. The marketing organization,
on a quarterly basis, shall submit to the board a written report that
accounts for all receipts and expenditures of the promotion funds
for the previous three months.

(d) This section shall remain in effect only until January 1, 2015,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2015, deletes or extends that date.
Any moneys held by the organization shall, in the event this section
is repealed, be distributed to the organization formed pursuant to
Section 19608.2, for purposes of that section.

SEC. 12.  

Section 22251.2 of the Business and Professions
Code is amended to read:

22251.2.  

(a) The council shall have the responsibilities and
duties set forth in this chapter. The council may take any reasonable
actions to carry out the responsibilities and duties set forth in this
chapter, including, but not limited to, hiring staff and entering into
contracts. The council shall be governed by a board of directors
comprised in the manner described in subdivision (d) of Section
begin delete 22151 end delete begin insert 22251 end insert .

(b) The council shall issue registrations, deny applications, and
discipline registrants as authorized by this chapter. The council
may adopt bylaws, rules, regulations, and procedures necessary
to effectuate the purposes of this chapter.

(c) The council shall establish application fees, renewal fees,
delinquent fees, and other fees related to the regulatory cost of
providing services and carrying out the council’s responsibilities
and duties pursuant to this chapter. These fees shall not exceed the
reasonable cost to the council of providing those services and
carrying out those responsibilities and duties.

SEC. 13.  

Section 23826.12 of the Business and Professions
Code is amended to read:

23826.12.  

(a) Notwithstanding any other provision of this
chapter, in any county of the 24th class, the department may issue
no more than a total of five additional new original on-sale general
licenses for bona fide public eating places from January 1, 2014,
to December 31, 2016, inclusive. To qualify for a license under
this section, the premises upon which a bona fide public eating
place is operated shall have a seating capacity for 50 or more
diners.

(b) In issuing the licenses provided for in this section, the
department shall follow the procedure set forth in Section 23961.

(c) This chapter does not prohibit a person who currently holds
a valid on-sale general license for seasonal business from applying
for an original on-sale general license pursuant to this section.

(d) A license issued under this section shall not be transferred
from one county to another begin insert , end insert nor shall it be transferred to any
premises not qualifying under this section.

SEC. 14.  

Section 56.30 of the Civil Code is amended to read:

56.30.  

The disclosure and use of the following medical
information shall not be subject to the limitations of this part:

(a) (Mental health and developmental disabilities) Information
and records obtained in the course of providing services under
Division 4 (commencing with Section 4000), Division 4.1
(commencing with Section 4400), Division 4.5 (commencing with
Section 4500), Division 5 (commencing with Section 5000),
Division 6 (commencing with Section 6000), or Division 7
(commencing with Section 7100) of the Welfare and Institutions
Code.

(b) (Public social services) Information and records that are
subject to Sections 10850, 14124.1, and 14124.2 of the Welfare
and Institutions Code.

(c) (State health services, communicable diseases, developmental
disabilities) Information and records maintained pursuant to former
Chapter 2 (commencing with Section 200) of Part 1 of Division 1
of the Health and Safety Code and pursuant to the Communicable
Disease Prevention and Control Act (subdivision (a) of Section
27 of the Health and Safety Code).

(d) (Licensing and statistics) Information and records maintained
pursuant to Division 2 (commencing with Section 1200) and Part
1 (commencing with Section 102100) of Division 102 of the Health
and Safety Code; pursuant to Chapter 3 (commencing with Section
1200) of Division 2 of the Business and Professions Code; and
pursuant to Section 8608, 8817, or 8909 of the Family Code.

(e) (Medical survey, workers’ safety) Information and records
acquired and maintained or disclosed pursuant to Sections 1380
and 1382 of the Health and Safety Code and pursuant to Division
5 (commencing with Section 6300) of the Labor Code.

(f) (Industrial accidents) Information and records acquired,
maintained, or disclosed pursuant to Division 1 (commencing with
Section 50), Division 4 (commencing with Section 3200), Division
4.5 (commencing with Section 6100), and Division 4.7
(commencing with Section 6200) of the Labor Code.

(g) (Law enforcement) Information and records maintained by
a health facility which are sought by a law enforcement agency
under Chapter 3.5 (commencing with Section 1543) of Title 12 of
Part 2 of the Penal Code.

(h) (Investigations of employment accident or illness)
Information and records sought as part of an investigation of an
on-the-job accident or illness pursuant to Division 5 (commencing
with Section 6300) of the Labor Code or pursuant to Section
105200 of the Health and Safety Code.

(i) (Alcohol or drug abuse) Information and records subject to
the federal alcohol and drug abuse regulations (Part 2 (commencing
with Section 2.1) of Subchapter A of Chapter 1 of Title 42 of the
Code of Federal Regulations) or to Section begin delete 11977 end delete begin insert 11845.5 end insert of the
Health and Safety Code dealing with begin delete narcotic end delete begin insert alcohol end insert and drug
abuse.

(j) (Patient discharge data) Nothing in this part shall be construed
to limit, expand, or otherwise affect the authority of the California
Health Facilities Commission to collect patient discharge
information from health facilities.

(k) Medical information and records disclosed to, and their use
by, the Insurance Commissioner, the Director of the Department
of Managed Health Care, the Division of Industrial Accidents, the
Workers’ Compensation Appeals Board, the Department of
Insurance, or the Department of Managed Health Care.

(l) Medical information and records related to services provided
on and after January 1, 2006, disclosed to, and their use by, the
Managed Risk Medical Insurance Board to the same extent that
those records are required to be provided to the board related to
services provided on and after July 1, 2009, to comply with Section
403 of the federal Children’s Health Insurance Program
Reauthorization Act of 2009 (Public Law 111-3), applying
subdivision (c) of Section 1932 of the federal Social Security Act.

SEC. 15.  

Section 1102.6 of the Civil Code, as amended by
Section 1 of Chapter 431 of the Statutes of 2013, is amended to
read:

1102.6.  

(a) The disclosures required by this article pertaining
to the property proposed to be transferred are set forth in, and shall
be made on a copy of, the following disclosure form:

PRINTER PLEASE NOTE: TIP-IN MATERIAL TO BE
INSERTED

[5 pages]

(b) The amendments to this section by the act adding this
subdivision shall become operative on July 1, 2014.

SEC. 16.  

Section 1788.58 of the Civil Code is amended to
read:

1788.58.  

In an action brought by a debt buyer on a consumer
debt:

(a) The complaint shall allege all of the following:

(1) That the plaintiff is a debt buyer.

(2) The nature of the underlying debt and the consumer
transaction or transactions from which it is derived, in a short and
plain statement.

(3) That the debt buyer is the sole owner of the debt at issue, or
has authority to assert the rights of all owners of the debt.

(4) The debt balance at charge off and an explanation of the
amount, nature, and reason for all post-charge-off interest and fees,
if any, imposed by the charge-off creditor or any subsequent
purchasers of the debt. This paragraph shall not be deemed to
require a specific itemization, but the explanation shall identify
separately the charge-off balance, the total of any post-charge-off
interest, and the total of any post-charge-off fees.

(5) The date of default or the date of the last payment.

(6) The name and an address of the charge-off creditor at the
time of charge off begin delete , end delete and the charge-off creditor’s account number
associated with the debt. The charge-off creditor’s name and
address shall be in sufficient form so as to reasonably identify the
charge-off creditor.

(7) The name and last known address of the debtor as they
appeared in the charge-off creditor’s records prior to the sale of
the debt. If the debt was sold prior to January 1, 2014, the debtor’s
name and last known address as they appeared in the debt owner’s
records on December 31, 2013, shall be sufficient.

(8) The names and addresses of all persons or entities that
purchased the debt after charge off, including the plaintiff debt
buyer. The names and addresses shall be in sufficient form so as
to reasonably identify each such purchaser.

(9) That the debt buyer has complied with Section 1788.52.

(b) A copy of the contract or other document described in
subdivision (b) of Section 1788.52 begin delete , end delete shall be attached to the
complaint.

(c) The requirements of this title shall not be deemed to require
the disclosure in public records of personal, financial, or medical
information, the confidentiality of which is protected by any state
or federal law.

SEC. 17.  

Section 425.16 of the Code of Civil Procedure is
amended to read:

425.16.  

(a) The Legislature finds and declares that there has
been a disturbing increase in lawsuits brought primarily to chill
the valid exercise of the constitutional rights of freedom of speech
and petition for the redress of grievances. The Legislature finds
and declares that it is in the public interest to encourage continued
participation in matters of public significance, and that this
participation should not be chilled through abuse of the judicial
process. To this end, this section shall be construed broadly.

(b) (1) A cause of action against a person arising from any act
of that person in furtherance of the person’s right of petition or
free speech under the United States Constitution or the California
Constitution in connection with a public issue shall be subject to
a special motion to strike, unless the court determines that the
plaintiff has established that there is a probability that the plaintiff
will prevail on the claim.

(2) In making its determination, the court shall consider the
pleadings, and supporting and opposing affidavits stating the facts
upon which the liability or defense is based.

(3) If the court determines that the plaintiff has established a
probability that he or she will prevail on the claim, neither that
determination nor the fact of that determination shall be admissible
in evidence at any later stage of the case, or in any subsequent
action, and no burden of proof or degree of proof otherwise
applicable shall be affected by that determination in any later stage
of the case or in any subsequent proceeding.

(c) (1) Except as provided in paragraph (2), in any action subject
to subdivision (b), a prevailing defendant on a special motion to
strike shall be entitled to recover his or her attorney’s fees and
costs. If the court finds that a special motion to strike is frivolous
or is solely intended to cause unnecessary delay, the court shall
award costs and reasonable attorney’s fees to a plaintiff prevailing
on the motion, pursuant to Section 128.5.

(2) A defendant who prevails on a special motion to strike in
an action subject to paragraph (1) shall not be entitled to attorney’s
fees and costs if that cause of action is brought pursuant to Section
6259, 11130, 11130.3, 54960, or 54960.1 of the Government Code.
Nothing in this paragraph shall be construed to prevent a prevailing
defendant from recovering attorney’s fees and costs pursuant to
subdivision (d) of Section 6259, begin delete 11130.5, or 54690.5 end delete begin insert or Section
11130.5 or 54960.5, of the Government Code end insert .

(d) This section shall not apply to any enforcement action
brought in the name of the people of the State of California by the
Attorney General, district attorney, or city attorney, acting as a
public prosecutor.

(e) As used in this section, “act in furtherance of a person’s right
of petition or free speech under the United States or California
Constitution in connection with a public issue” includes: (1) any
written or oral statement or writing made before a legislative,
executive, or judicial proceeding, or any other official proceeding
authorized by law, (2) any written or oral statement or writing
made in connection with an issue under consideration or review
by a legislative, executive, or judicial body, or any other official
proceeding authorized by law, (3) any written or oral statement or
writing made in a place open to the public or a public forum in
connection with an issue of public interest, or (4) any other conduct
in furtherance of the exercise of the constitutional right of petition
or the constitutional right of free speech in connection with a public
issue or an issue of public interest.

(f) The special motion may be filed within 60 days of the service
of the complaint or, in the court’s discretion, at any later time upon
terms it deems proper. The motion shall be scheduled by the clerk
of the court for a hearing not more than 30 days after the service
of the motion unless the docket conditions of the court require a
later hearing.

(g) All discovery proceedings in the action shall be stayed upon
the filing of a notice of motion made pursuant to this section. The
stay of discovery shall remain in effect until notice of entry of the
order ruling on the motion. The court, on noticed motion and for
good cause shown, may order that specified discovery be conducted
notwithstanding this subdivision.

(h) For purposes of this section, “complaint” includes
“cross-complaint” and “petition,” “plaintiff” includes
“cross-complainant” and “petitioner,” and “defendant” includes
“cross-defendant” and “respondent.”

(i) An order granting or denying a special motion to strike shall
be appealable under Section 904.1.

(j) (1) Any party who files a special motion to strike pursuant
to this section, and any party who files an opposition to a special
motion to strike, shall, promptly upon so filing, transmit to the
Judicial Council, by e-mail or facsimile, a copy of the endorsed,
filed caption page of the motion or opposition, a copy of any related
notice of appeal or petition for a writ, and a conformed copy of
any order issued pursuant to this section, including any order
granting or denying a special motion to strike, discovery, or fees.

(2) The Judicial Council shall maintain a public record of
information transmitted pursuant to this subdivision for at least
three years, and may store the information on microfilm or other
appropriate electronic media.

SEC. 18.  

Section 580b of the Code of Civil Procedure is
amended to read:

580b.  

(a) Except as provided in subdivision (c), no deficiency
shall be owed or collected, and no deficiency judgment shall lie,
for any of the following:

(1) After a sale of real property or an estate for years therein
for failure of the purchaser to complete his or her contract of sale.

(2) Under a deed of trust or mortgage given to the vendor to
secure payment of the balance of the purchase price of that real
property or estate for years therein.

(3) Under a deed of trust or mortgage on a dwelling for not more
than four families given to a lender to secure repayment of a loan
that was used to pay all or part of the purchase price of that
dwelling, occupied entirely or in part by the purchaser. For
purposes of subdivision (b), a loan described in this paragraph is
a “purchase money loan.”

(b) No deficiency shall be owed or collected, and no deficiency
judgment shall lie, on a loan, refinance, or other credit transaction
(collectively, a “credit transaction”) that is used to refinance a
purchase money loan, or subsequent refinances of a purchase
money loan, except to the extent that in a credit transaction the
lender or creditor advances new principal (hereafter “new
advance”) that is not applied to an obligation owed or to be owed
under the purchase money loan, or to fees, costs, or related
expenses of the credit transaction. A new credit transaction shall
be deemed to be a purchase money loan except as to the principal
amount of a new advance. For purposes of this section, any
payment of principal shall be deemed to be applied first to the
principal balance of the purchase money loan, and then to the
principal balance of a new advance, and interest payments shall
be applied to any interest due and owing. This subdivision applies
only to credit transactions that are executed on or after January 1,
2013.

(c) The fact that no deficiency shall be owed or collected under
the circumstances set forth in subdivisions (a) and (b) does not
affect the liability that a guarantor, pledgor begin insert , end insert or other surety might
otherwise have with respect to the deficiency, or that might
otherwise be satisfied in whole or in part from other collateral
pledged to secure the obligation that is the subject of the deficiency.

(d) When both a chattel mortgage and a deed of trust or
mortgage have been given to secure payment of the balance of the
combined purchase price of both real and personal property, no
deficiency judgment shall lie under any one thereof if no deficiency
judgment would lie under the deed of trust or mortgage on the real
property or estate for years therein.

SEC. 19.  

Section 580d of the Code of Civil Procedure is
amended to read:

580d.  

(a) Except as provided in subdivision (b), no deficiency
shall be owed or collected, and no deficiency judgment shall be
rendered for a deficiency on a note secured by a deed of trust or
mortgage on real property or an estate for years therein executed
in any case in which the real property or estate for years therein
has been sold by the mortgagee or trustee under power of sale
contained in the mortgage or deed of trust.

(b) The fact that no deficiency shall be owed or collected under
the circumstances set forth in subdivision (a) does not affect the
liability that a guarantor, pledgor begin insert , end insert or other surety might otherwise
have with respect to the deficiency, or that might otherwise be
satisfied in whole or in part from other collateral pledged to secure
the obligation that is the subject of the deficiency.

(c) This section does not apply to a deed of trust, mortgage, or
other lien given to secure the payment of bonds or other evidences
of indebtedness authorized or permitted to be issued by the
Commissioner of Corporations, or which is made by a public utility
subject to the Public Utilities Act (Part 1 (commencing with Section
201) of Division 1 of the Public Utilities Code).

SEC. 20.  

Section 1282.4 of the Code of Civil Procedure is
amended to read:

1282.4.  

(a) A party to the arbitration has the right to be
represented by an attorney at any proceeding or hearing in
arbitration under this title. A waiver of this right may be revoked;
but if a party revokes that waiver, the other party is entitled to a
reasonable continuance for the purpose of procuring an attorney.

(b) Notwithstanding any other law, including Section 6125 of
the Business and Professions Code, an attorney admitted to the
bar of any other state may represent the parties in the course of,
or in connection with, an arbitration proceeding in this state,
provided that the attorney, if not admitted to the State Bar of
California, satisfies all of the following:

(1) He or she timely serves the certificate described in
subdivision (c).

(2) The attorney’s appearance is approved in writing on that
certificate by the arbitrator, the arbitrators, or the arbitral forum.

(3) The certificate bearing approval of the attorney’s appearance
is filed with the State Bar of California and served on the parties
as described in this section.

(c) Within a reasonable period of time after the attorney
described in subdivision (b) indicates an intention to appear in the
arbitration, the attorney shall serve a certificate in a form prescribed
by the State Bar of California on the arbitrator, arbitrators, or
arbitral forum, the State Bar of California, and all other parties
and counsel in the arbitration whose addresses are known to the
attorney. The certificate shall state all of the following:

(1) The case name and number, and the name of the arbitrator,
arbitrators, or arbitral forum assigned to the proceeding in which
the attorney seeks to appear.

(2) The attorney’s residence and office address.

(3) The courts before which the attorney has been admitted to
practice and the dates of admission.

(4) That the attorney is currently a member in good standing
of, and eligible to practice law before, the bar of those courts.

(5) That the attorney is not currently on suspension or disbarred
from the practice of law before the bar of any court.

(6) That the attorney is not a resident of the State of California.

(7) That the attorney is not regularly employed in the State of
California.

(8) That the attorney is not regularly engaged in substantial
business, professional, or other activities in the State of California.

(9) That the attorney agrees to be subject to the jurisdiction of
the courts of this state with respect to the law of this state governing
the conduct of attorneys to the same extent as a member of the
State Bar of California.

(10) The title of the court and the cause in which the attorney
has filed an application to appear as counsel pro hac vice in this
state or filed a certificate pursuant to this section in the preceding
two years, the date of each application or certificate, and whether
or not it was granted. If the attorney has made repeated
appearances, the certificate shall reflect the special circumstances
that warrant the approval of the attorney’s appearance in the
arbitration.

(11) The name, address, and telephone number of the active
member of the State Bar of California who is the attorney of record.

(d) The arbitrator, arbitrators, or arbitral forum may approve
the attorney’s appearance if the attorney has complied with
subdivision (c). Failure to timely file and serve the certificate
described in subdivision (c) shall be grounds for disapproval of
the appearance and disqualification from serving as an attorney in
the arbitration in which the certificate was filed. In the absence of
special circumstances, repeated appearances shall be grounds for
disapproval of the appearance and disqualification from serving
as an attorney in the arbitration in which the certificate was filed.

(e) Within a reasonable period of time after the arbitrator,
arbitrators, or arbitral forum approves the certificate, the attorney
shall file the certificate with the State Bar of California and serve
the certificate as described in Section 1013a on all parties and
counsel in the arbitration whose addresses are known to the
attorney.

(f) An attorney who fails to file or serve the certificate required
by this section or files or serves a certificate containing false
information or who otherwise fails to comply with the standards
of professional conduct required of members of the State Bar of
California shall be subject to the disciplinary jurisdiction of the
State Bar with respect to that certificate or any of his or her acts
occurring in the course of the arbitration.

(g) Notwithstanding any other law, including Section 6125 of
the Business and Professions Code, an attorney who is a member
in good standing of the bar of any state may represent the parties
in connection with rendering legal services in this state in the
course of and in connection with an arbitration pending in another
state.

(h) Notwithstanding any other law, including Section 6125 of
the Business and Professions Code, any party to an arbitration
arising under collective bargaining agreements in industries and
provisions subject to either state or federal law may be represented
in the course of, and in connection with, those proceedings by any
person, regardless of whether that person is licensed to practice
law in this state.

(i) Nothing in this section shall apply to Division 4 (commencing
with Section begin delete 3201) end delete begin insert 3200) end insert of the Labor Code.

(j) (1) In enacting the amendments to this section made by
Assembly Bill 2086 of the 1997-98 Regular Session, it is the intent
of the Legislature to respond to the holding in Birbrower v.
Superior Court (1998) 17 Cal.4th begin delete 119, as modified at 17 Cal.4th
643a (hereafter Birbrower) end delete begin insert 119 end insert , to provide a procedure for
nonresident attorneys who are not licensed in this state to appear
in California arbitration proceedings.

(2) In enacting subdivision (h), it is the intent of the Legislature
to make clear that any party to an arbitration arising under a
collective bargaining agreement governed by the laws of this state
may be represented in the course of and in connection with those
proceedings by any person regardless of whether that person is
licensed to practice law in this state.

(3) Except as otherwise specifically provided in this section, in
enacting the amendments to this section made by Assembly Bill
2086 of the 1997-98 Regular Session, it is the Legislature’s intent
that nothing in this section is intended to expand or restrict the
ability of a party prior to the decision in Birbrower to elect to be
represented by any person in a nonjudicial arbitration proceeding,
to the extent those rights or abilities existed prior to that decision.
To the extent that Birbrower is interpreted to expand or restrict
that right or ability pursuant to the laws of this state, it is hereby
abrogated except as specifically provided in this section.

(4) In enacting subdivision (i), it is the intent of the Legislature
to make clear that nothing in this section shall affect those
provisions of law governing the right of injured workers to elect
to be represented by any person, regardless of whether that person
is licensed to practice law in this state, as set forth in Division 4
(commencing with Section 3200) of the Labor Code.

SEC. 21.  

Section 1530 of the Code of Civil Procedure is
amended to read:

1530.  

(a) Every person holding funds or other property
escheated to this state under this chapter shall report to the
Controller as provided in this section.

(b) The report shall be on a form prescribed or approved by the
Controller and shall include:

(1) Except with respect to traveler’s checks and money orders,
the name, if known, and last known address, if any, of each person
appearing from the records of the holder to be the owner of any
property of value of at least fifty dollars ($50) escheated under
this chapter. This paragraph shall become inoperative on July 1,
2014.

(2) Except with respect to traveler’s checks and money orders,
the name, if known, and last known address, if any, of each person
appearing from the records of the holder to be the owner of any
property of value of at least twenty-five dollars ($25) escheated
under this chapter. This paragraph shall become operative on July
1, 2014.

(3) In the case of escheated funds of life insurance corporations,
the full name of the insured or annuitant, and his or her last known
address, according to the life insurance corporation’s records.

(4) In the case of the contents of a safe deposit box or other
safekeeping repository or in the case of other tangible property, a
description of the property and the place where it is held and may
be inspected by the Controller. The report shall set forth any
amounts owing to the holder for unpaid rent or storage charges
and for the cost of opening the safe deposit box or other
safekeeping repository, if any, in which the property was contained.

(5) The nature and identifying number, if any, or description of
any intangible property and the amount appearing from the records
to be due, except that items of value under begin delete twenty five end delete begin insert twenty-five end insert
dollars ($25) each may be reported in aggregate.

(6) Except for any property reported in the aggregate, the date
when the property became payable, demandable, or returnable,
and the date of the last transaction with the owner with respect to
the property.

(7) Other information which the Controller prescribes by rule
as necessary for the administration of this chapter.

(c) If the holder is a successor to other persons who previously
held the property for the owner, or if the holder has changed his
or her name while holding the property, he or she shall file with
his or her report all prior known names and addresses of each
holder of the property.

(d) The report shall be filed before November 1 of each year as
of June 30 or fiscal yearend next preceding, but the report of life
insurance corporations, and the report of all insurance corporation
demutualization proceeds subject to Section 1515.5, shall be filed
before May 1 of each year as of December 31 next preceding. The
initial report for property subject to Section 1515.5 shall be filed
on or before May 1, 2004, with respect to conditions in effect on
December 31, 2003, and all property shall be determined to be
reportable under Section 1515.5 as if that section were in effect
on the date of the insurance company demutualization or related
reorganization. The Controller may postpone the reporting date
upon his or her own motion or upon written request by any person
required to file a report.

(e) The report, if made by an individual, shall be verified by the
individual; if made by a partnership, by a partner; if made by an
unincorporated association or private corporation, by an officer;
and if made by a public corporation, by its chief fiscal officer or
other employee authorized by the holder.

SEC. 22.  

Section 402.5 of the Corporations Code is amended
to read:

402.5.  

The rights, preferences, privileges, and restrictions
granted to or imposed upon a class or series of preferred shares
(Section 176) begin insert , end insert the designation of which includes either the word
“preferred” or the word “preference begin insert , end insert ” may:

(a) Notwithstanding paragraph (9) of subdivision (a) of Section
204, include a provision requiring a vote of a specified percentage
or proportion of the outstanding shares of the class or series that
is less than a majority of the class or series to approve any
corporate action, except where the vote of a majority or greater
proportion of the class or series is required by this division,
regardless of restrictions or limitations on the voting rights thereof.

(b) Notwithstanding paragraph (5) of subdivision (a) of Section
204, provide that in addition to the requirement of subdivision (a)
of Section 1900 the corporation may voluntarily wind up and
dissolve only upon the vote of a specified percentage (which shall
not exceed 662⁄3 percent) of such class or series.

(c) Notwithstanding subdivision (a) of Section 500, provide that
a distribution may be made without regard to the preferential
dividends arrears amount, or any preferential rights amount, or
both, as described in paragraphs (1) and (2) of subdivision (a) of
Section 500.

SEC. 23.  

Section 14001 of the Corporations Code is amended
to read:

14001.  

(a) It is the intent of the Legislature in enacting this
chapter to promote the economic development of small businesses
through the California Small Business Finance Center by making
available capital, general management assistance, and other
resources, including financial services, personnel, and business
education to small business entrepreneurs, including women,
veteran, and minority-owned businesses, for the purpose of
promoting the health, safety, and social welfare of the citizens of
California, to eliminate unemployment of the economically
disadvantaged of the state, and to stimulate economic development
and entrepreneurship.

(b) It is the further intent of the Legislature to provide a flexible
means to mobilize and commit all available and potential resources
in the various regions of the state to fulfill these objectives,
including federal, state, and local public resources, and private
debt and equity investment.

(c) It is the further intent of the Legislature that corporations
operating pursuant to this law begin delete , end delete shall begin insert , end insert to the maximum extent
feasible, coordinate with other job and business development
efforts within their region directed toward implementing the
purpose of this chapter.

(d) It is the further intent of the Legislature to provide expanded
resources allowing participation by small and emerging contractors
in state public works contracts. Increased access to surety bonding
resources will assist in supporting participation by those firms in
public works contracts, and by stimulating increased participation
by small firms, the state will benefit from increased competition
and lower bid costs.

SEC. 24.  

Section 14305 of the Corporations Code is amended
to read:

14305.  

(a) (1) This section shall be known and may be cited
as the Mutual Water Company Open Meeting Act.

(2) This section shall only apply to a mutual water company
that operates a public water system.

(b) Any eligible person, upon 24 hours advance written notice,
may attend meetings of the board of directors of a mutual water
company, except when the board adjourns to, or meets solely in,
executive session to consider litigation, matters relating to the
formation of contracts with third parties, member or shareholder
discipline, personnel matters, or to meet with a member or
shareholder, upon the member or shareholder’s request, regarding
the member or shareholder’s payment of assessments, as specified
in Section 14303. The board of directors of the begin delete association end delete begin insert mutual
water company end insert shall meet in executive session, if requested by a
member or shareholder who may be subject to a fine, penalty, or
other form of discipline, and the member shall be entitled to attend
the executive session. As specified in paragraph (3) of subdivision
begin delete (m) end delete begin insert (o) end insert , an eligible person shall be entitled to attend a
teleconference meeting or the portion of a teleconference meeting
that is open to eligible persons, and that meeting or portion of the
meeting shall be audible to the eligible persons in a location
specified in the notice of the meeting.

(c) Any matter discussed in executive session shall be generally
noted in the minutes of the immediately following meeting that is
open to eligible persons.

(d) The minutes, minutes proposed for adoption that are marked
to indicate draft status, or a summary of the minutes, of any
meeting of the board of directors of a mutual water company,
conducted on or after January 1, 2014, other than an executive
session, shall be available to eligible persons within 30 days of the
meeting. The minutes, proposed minutes, or summary minutes
shall be provided to any eligible person upon request and upon
reimbursement of the mutual water company’s costs for providing
the minutes.

(e) The pro forma budget required in Section 14306 shall be
available to eligible persons within 30 days of the meeting at which
the budget was adopted. The budget shall be provided to any
eligible person upon request and upon reimbursement of the mutual
water company’s costs.

(f) Unless the bylaws provide for a longer period of notice,
eligible persons shall be given notice of the time and place of a
meeting as defined in subdivision begin delete (m) end delete begin insert (o) end insert , except for an emergency
meeting or a meeting that will be held solely in executive session,
at least four days prior to the meeting. Except for an emergency
meeting, eligible persons shall be given notice of the time and
place of a meeting that will be held solely in executive session at
least two days prior to the meeting. Notice shall be given by posting
the notice in a prominent, publicly accessible place or places within
the territory served by the mutual water company and by mail to
any eligible person who had requested notification of board
meetings by mail, at the address requested by the eligible person.
Eligible persons requesting notice by mail shall pay the costs of
reproduction and mailing of the notice in advance. Notice may
also be given by mail, by delivery of the notice to each unit served
by the mutual water company or, with the consent of the eligible
person, by electronic means. The notice shall contain the agenda
for the meeting.

(g) An emergency meeting of the board may be called by the
chief executive officer of the mutual water company, or by any
two members of the board of directors other than the chief
executive officer, if there are circumstances that could not have
been reasonably foreseen which require immediate attention and
possible action by the board, and which of necessity make it
impracticable to provide notice as required by this section.

(h) The board of directors of a mutual water company shall
permit any eligible person to speak at any meeting of the mutual
water company or the board of directors, except for meetings of
the board held in executive session. A reasonable time limit for
all eligible persons to speak to the board of directors or before a
meeting of the mutual water company shall be established by the
board of directors.

(i) (1) Except as described in paragraphs (2) to (4), inclusive,
the board of directors of the mutual water company may not discuss
or take action on any item at a nonemergency meeting unless the
item was placed on the agenda included in the notice that was
posted and distributed pursuant to subdivision (f). This subdivision
does not prohibit an eligible person who is not a member of the
board from speaking on issues not on the agenda.

(2) Notwithstanding paragraph (1), a member of the board of
directors, mutual water company officers, or a member of the staff
of the mutual water company, may do any of the following:

(A) Briefly respond to statements made or questions posed by
a person speaking at a meeting as described in subdivision (h).

(B) Ask a question for clarification, make a brief announcement,
or make a brief report on his or her own activities, whether in
response to questions posed by an eligible person or based upon
his or her own initiative.

(3) Notwithstanding paragraph (1), the board of directors or a
member of the board of directors, subject to rules or procedures
of the board of directors, may do any of the following:

(A) Provide a reference to, or provide other resources for factual
information to, the mutual water company’s officers or staff.

(B) Request the mutual water company’s officers or staff to
report back to the board of directors at a subsequent meeting
concerning any matter, or take action to direct the mutual water
company’s officers or staff to place a matter of business on a future
agenda.

(C) Direct the mutual water company’s officers or staff to
perform administrative tasks that are necessary to carry out this
subdivision.

(4) (A) Notwithstanding paragraph (1), the board of directors
may take action on any item of business not appearing on the
agenda posted and distributed pursuant to subdivision (f) under
any of the following conditions:

(i) Upon a determination made by a majority of the board of
directors present at the meeting that an emergency situation exists.
An emergency situation exists if there are circumstances that could
not have been reasonably foreseen by the board, that require
immediate attention and possible action by the board, and that, of
necessity, make it impracticable to provide notice.

(ii) Upon a determination made by the board by a vote of
two-thirds of the members present at the meeting, or, if less than
two-thirds of total membership of the board is present at the
meeting, by a unanimous vote of the members present, that there
is a need to take immediate action and that the need for action
came to the attention of the board after the agenda was posted and
distributed pursuant to subdivision (f).

(iii) The item appeared on an agenda that was posted and
distributed pursuant to subdivision (f) for a prior meeting of the
board of directors that occurred not more than 30 calendar days
before the date that action is taken on the item and, at the prior
meeting, action on the item was continued to the meeting at which
the action is taken.

(B) Before discussing any item pursuant to this paragraph, the
board of directors shall openly identify the item to the members
in attendance at the meeting.

(j) (1) Notwithstanding any other law, the board of directors
shall not take action on any item of business outside of a meeting.

(2) (A) Notwithstanding any other provision of law, the board
of directors shall not conduct a meeting via a series of electronic
transmissions, including, but not limited to, electronic mail, except
as specified in subparagraph (B).

(B) Electronic transmissions may be used as a method of
conducting an emergency meeting if all members of the board,
individually or collectively, consent in writing to that action, and
if the written consent or consents are filed with the minutes of the
meeting of the board. These written consents may be transmitted
electronically.

(k) (1) An eligible person may bring a civil action for
declaratory or equitable relief for a violation of this section by a
mutual water company for which he or she is defined as an eligible
person for a judicial determination that an action taken by the board
is null and void under this section.

(2) Prior to the commencement of an action pursuant to
paragraph (1), the eligible person shall make a demand on the
board to cure or correct the action alleged to be taken in violation
of this section. The demand shall be in writing, and submitted
within 90 days from the date the action was taken. The demand
shall state the challenged action of the board and the nature of the
alleged violation.

(3) Within 30 days of receipt of the demand, the board shall
cure or correct the challenged action and inform the demanding
party in writing of its actions to cure or correct, or inform the
demanding party in writing of its decision not to cure or correct
the challenged action.

(4) Within 15 days of receipt of the written notice of the board’s
decision to cure or correct or not to cure or correct, or within 15
days of the expiration of the 30-day period to cure or correct,
whichever is earlier, the demanding party shall commence the
action pursuant to paragraph (1). If the demanding party fails to
commence the action pursuant to paragraph (1), that party shall
be barred from commencing the action thereafter.

(l) A board action that is alleged to have been taken in violation
of this section shall not be determined to be void if the action taken
was in substantial compliance with this section.

(m) The fact that the board of directors of a mutual water
company takes subsequent action to cure or correct an action taken
pursuant to this section shall not be construed as, or admissible as
evidence of, a violation of this section.

(n) An eligible person who prevails in a civil action to enforce
his or her rights pursuant to this section shall be entitled to
reasonable attorney’s fees and court costs. A prevailing mutual
water company shall not recover any costs, unless the court finds
the action to be frivolous, unreasonable, or without foundation.

(o) As used in this section:

(1) “Eligible person” means a person who is any of the
following:

(A) A shareholder or member of the mutual water company.

(B) A person who is an occupant, pursuant to a lease or a rental
agreement, of commercial space or a dwelling unit to which the
mutual water company sells, distributes, supplies, or delivers
drinking water.

(C) An elected official of a city or county who represents people
who receive drinking water directly from the mutual water
company on a retail basis.

(D) Any other person eligible to participate in the mutual water
company’s meetings under provisions of the company’s articles
or bylaws.

(2) “Item of business” means any action within the authority of
the board, except those actions that the board has validly delegated
to any other person or persons, officer of the mutual water
company, or committee of the board comprising less than a
majority of the directors.

(3) “Meeting” means either of the following:

(A) A congregation of a majority of the members of the board
at the same time and place to hear, discuss, or deliberate upon any
item of business that is within the authority of the board.

(B) A teleconference in which a majority of the members of the
board, in different locations, are connected by electronic means,
through audio or video or both. A teleconference meeting shall be
conducted in a manner that protects the rights of members of the
begin delete association end delete begin insert mutual water company end insert and otherwise complies with
the requirements of this title. Except for a meeting that will be held
solely in executive session, the notice of the teleconference meeting
shall identify at least one physical location so that members of the
begin delete association end delete begin insert mutual water company end insert may attend and at least one
member of the board of directors or a person designated by the
board shall be present at that location. Participation by board
members in a teleconference meeting constitutes presence at that
meeting as long as all board members participating in the meeting
are able to hear one another and members of the begin delete association end delete begin insert mutual
water company end insert speaking on matters before the board.

(4) “Mutual water company” means a mutual water company,
as defined in Section 14300, that operates a public water system,
as defined in Section 14300.5.

SEC. 25.  

Section 221.5 of the Education Code is amended to
read:

221.5.  

(a) It is the policy of the state that elementary and
secondary school classes and courses, including nonacademic and
elective classes and courses, be conducted, without regard to the
sex of the pupil enrolled in these classes and courses.

(b) A school district begin delete may end delete begin insert shall end insert not prohibit a pupil from
enrolling in any class or course on the basis of the sex of the pupil,
except a class subject to Chapter 5.6 (commencing with Section
51930) of Part 28 of Division 4 of Title 2.

(c) A school district begin delete may end delete begin insert shall end insert not require a pupil of one sex to
enroll in a particular class or course, unless the same class or course
is also required of a pupil of the opposite sex.

(d) A school counselor, teacher, instructor, administrator, or
aide begin delete may end delete begin insert shall end insert not, on the basis of the sex of a pupil, offer
vocational or school program guidance to a pupil of one sex that
is different from that offered to a pupil of the opposite sex or, in
counseling a pupil, differentiate career, vocational, or higher
education opportunities on the basis of the sex of the pupil
counseled. Any school personnel acting in a career counseling or
course selection capacity to a pupil shall affirmatively explore
with the pupil the possibility of careers, or courses leading to
careers, that are nontraditional for that pupil’s sex. The parents or
legal guardian of the pupil shall be notified in a general manner
at least once in the manner prescribed by Section 48980, in advance
of career counseling and course selection commencing with course
selection for grade 7 so that they may participate in the counseling
sessions and decisions.

(e) Participation in a particular physical education activity or
sport, if required of pupils of one sex, shall be available to pupils
of each sex.

(f) A pupil shall be permitted to participate in sex-segregated
school programs and activities, including athletic teams and
competitions, and use facilities consistent with his or her gender
identity, irrespective of the gender listed on the pupil’s records.

SEC. 26.  

Section 2576 of the Education Code is amended to
read:

2576.  

(a) If a county superintendent of schools enrolls begin insert , end insert in a
school operated by the county superintendent of schools begin insert , end insert a pupil
not funded pursuant to clause (i), (ii), or (iii) of subparagraph (A)
of paragraph (4) of subdivision (c) of Section 2574, or Article 2.5
(commencing with Section 48645) of Chapter 4 of Part 27 of
Division 4 of Title 2, any attendance generated by that pupil shall
be credited to the school district of residence. Enrollment of these
pupils shall be transferred to the school district of residence for
purposes of calculating the percentage of unduplicated pupils
pursuant to Section 42238.02.

(b) For purposes of this section, the school district of residence
for a homeless child, as defined in Section 1981.2, enrolled in a
school operated by a county superintendent of schools shall be
deemed to be the school district that last provided educational
services to that child or, if it is not possible to determine that school
district, the largest school district in the county.

SEC. 27.  

Section 8151 of the Education Code is amended to
read:

8151.  

An apprentice attending a local educational agency in
classes of related and supplemental instruction begin insert , end insert as provided under
Section 3074 of the Labor Code and in accordance with the
requirements of subdivision (d) of Section 3078 of the Labor Code begin insert , end insert
shall be exempt from the requirements of any interdistrict
attendance agreement for those classes.

SEC. 28.  

Section 8152 of the Education Code is amended to
read:

8152.  

(a) The reimbursement rate shall be established in the
annual Budget Act and the rate shall be commonly applied to all
providers of instruction specified in subdivision (d).

(b) For purposes of this section, each hour of teaching time may
include up to 10 minutes of passing time and breaks.

(c) This section also applies to isolated apprentices, as defined
in Section 3074 of the Labor Code, for which alternative methods
of instruction are provided.

(d) The Chancellor of the California Community Colleges shall
make the reimbursements specified in this section for teaching
time provided by local educational agencies.

(e) The hours for related and supplemental instruction derived
from funds appropriated pursuant to subdivision (b) of Section
8150 shall be allocated by the Chancellor of California Community
Colleges directly to participating local educational agencies that
contract with apprenticeship programs pursuant to subdivision (f).

(f) Reimbursements may be made under this section for related
and supplemental instruction provided to indentured apprentices
only if the instruction is provided by a program approved by the
Division of Apprenticeship Standards begin delete in end delete begin insert of end insert the Department of
Industrial Relations in accordance with Chapter 4 (commencing
with Section 3070) of Division 3 of the Labor Code.

(g) The initial allocation of hours made pursuant to subdivision
(e) for related and supplemental instruction at the beginning of
begin delete any end delete begin insert a end insert fiscal year begin insert , end insert when multiplied by the hourly reimbursement
rate begin insert , end insert shall equal 100 percent of the total appropriation for
apprenticeships.

(h) If funds remain from the appropriation pursuant to
subdivision (b) of Section 8150, the Chancellor of the California
Community Colleges shall reimburse local educational agencies
for unfunded related and supplemental instruction hours from any
of the three previous fiscal years, in the following order:

(1) Reported related and supplemental instruction hours begin insert , end insert as
described in subdivision (b) of Section 8154 begin insert , end insert that were paid at a
rate less than the hourly rate specified in the Budget Act.

(2) Reported related and supplemental instruction hours that
were not reimbursed.

SEC. 29.  

Section 8155 of the Education Code is amended to
read:

8155.  

(a) The Chancellor of the California Community
Colleges and the Division of Apprenticeship Standards of the
Department of Industrial Relations, in consultation with the
Superintendent, shall jointly develop a model format for
agreements between apprenticeship programs and local educational
agencies for instruction pursuant to Section 3074 of the Labor
Code.

(b) By March 14, 2014, the Chancellor of the California
Community Colleges and the Division of Apprenticeship Standards
of the Department of Industrial Relations, with equal participation
by local educational agencies and community college
apprenticeship administrators, shall develop common
administrative practices and treatment of costs and services, as
well as other policies related to apprenticeship programs. Any
policies developed pursuant to begin delete the end delete this subdivision shall become
operative upon approval by the California Apprenticeship Council.

(c) Apprenticeship programs offered through local educational
agencies may maintain their existing curriculum and instructors
separate from the requirements of the California Community
Colleges. The person providing instruction may be a qualified
journeyperson with experience and knowledge of the trade.

SEC. 30.  

Section 8482.3 of the Education Code is amended to
read:

8482.3.  

(a) The After School Education and Safety Program
shall be established to serve pupils in kindergarten and grades 1
to 9, inclusive, at participating public elementary, middle, junior
high, and charter schools.

(b) A program may operate a before school component of a
program, an after school component, or both the before and after
school components of a program, on one or multiple schoolsites.
If a program operates at multiple schoolsites, only one application
shall be required for its establishment.

(c) (1) Each component of a program established pursuant to
this article shall consist of the following two elements:

(A) An educational and literacy element in which tutoring or
homework assistance is provided in one or more of the following
areas: language arts, mathematics, history and social science,
computer training, or science.

(B) An educational enrichment element begin delete , end delete that may include, but
need not be limited to, fine arts, career technical education,
recreation, physical fitness, and prevention activities.

(2) Notwithstanding any other provision of this article, the
majority of the time spent by a pupil who is in kindergarten or any
of grades 1 to 9, inclusive, and who is participating in a career
technical education element of a program established pursuant to
this article shall be at a site that complies with Section 8484.6.

(d) (1) Applicants shall agree that snacks made available
through a program shall conform to the nutrition standards in
Article 2.5 (commencing with Section 49430) of Chapter 9 of Part
27 of Division 4 of Title 2.

(2) Applicants shall agree that meals made available through a
program shall conform to the nutrition standards of the United
States Department of Agriculture’s at-risk afterschool meal
component of the Child and Adult Care Food Program (42 U.S.C.
Sec. 1766).

(e) Applicants for programs established pursuant to this article
may include any of the following:

(1) A local educational agency, including, but not limited to, a
charter school, the California School for the Deaf (northern
California), the California School for the Deaf (southern
California), and the California School for the Blind.

(2) A city, county, or nonprofit organization in partnership with,
and with the approval of, a local educational agency or agencies.

(f) Applicants for grants pursuant to this article shall ensure that
each of the following requirements is fulfilled, if applicable:

(1) The application documents the commitments of each partner
to operate a program on that site or sites.

(2) The application has been approved by the school district, or
the charter school governing body, and the principal of each
participating school for each schoolsite or other site.

(3) Each partner in the application agrees to share responsibility
for the quality of the program.

(4) The application designates the public agency or local
educational agency partner to act as the fiscal agent. For purposes
of this section, “public agency” means only a county board of
supervisors or begin insert , end insert if the city is incorporated or has a charter, a city
council.

(5) Applicants agree to follow all fiscal reporting and auditing
standards required by the department.

(6) Applicants agree to incorporate into the program both of the
elements required pursuant to subdivision (c).

(7) Applicants agree to provide information to the department
for the purpose of program evaluation pursuant to Section 8483.55.

(8) Applicants shall certify that program evaluations will be
based upon Section 8484 and upon any requirements recommended
by the Advisory Committee on Before and After School Programs
and adopted by the state board, in compliance with subdivision
(g) of Section 8482.4.

(9) The application states the targeted number of pupils to be
served by the program.

(10) Applicants agree to provide the following information on
participating pupils to the department:

(A) Schoolday attendance rates.

(B) Pupil test scores from the Standardized Testing and
Reporting Program established under Section 60640, reflecting
achievement in the areas addressed by required program elements,
if assessments have been established in that area.

(C) Program attendance.

(g) (1) Grantees shall review their after school program plans
every three years, including, but not limited to, all of the following:

(A) Program goals. A grantee may specify any new program
goals that will apply to the following three years during the grant
renewal process.

(B) Program content, including the elements identified in
subdivision (c).

(C) Outcome measures selected from those identified in
subdivision (a) of Section 8484 that the grantee will use for the
next three years.

(D) Any other information requested by the department.

(E) If the program goals or outcome measures change as a result
of this review, the grantee shall notify the department in a manner
prescribed by the department.

(F) The grantee shall maintain documentation of the after school
program plan for a minimum of five years.

(2) The department shall monitor this review as part of its onsite
monitoring process.

SEC. 31.  

Section 20092 of the Education Code is amended to
read:

20092.  

(a) The endowment may create a competitive grant
program to support small capital projects in museums pursuant to
subdivision (b) of Section 20057. The grant program shall give
priority to the objectives listed in Section 20091. Once funding
becomes available from the sale of specialized license plates
pursuant to subdivision (b), funding for the grant program shall
only be made, upon begin delete apppropriation end delete begin insert appropriation end insert by the
Legislature, from the funds collected pursuant to subdivision (b).

(b) If the endowment creates the grant program described in
subdivision (a), the endowment shall apply to the Department of
Motor Vehicles pursuant to Section 5156 of the Vehicle Code for
the purpose of creating a specialized license plate program. It is
hereby warranted to the purchasers of these specialized license
plates that the fees collected from the sale of the specialized license
plates shall be deposited in the California Cultural and Historical
Endowment Fund to fund the grant program described in
subdivision (a). The endowment shall comply with all of the
requirements of Article 8.6 (commencing with Section 5151) of
Chapter 1 of Division 3 of the Vehicle Code that apply to a state
agency that sponsors a specialized license plate program.

SEC. 32.  

Section 32282.1 of the Education Code is amended
to read:

32282.1.  

As comprehensive school safety plans are reviewed
and updated, the Legislature encourages all plans, to the extent
that resources are available, to include clear guidelines for the roles
and responsibilities of mental health professionals, community
intervention professionals, school counselors, school resource
officers, and police officers on school begin delete campus end delete begin insert campuses end insert , if the
school district uses these people. The guidelines may include
primary strategies to create and maintain a positive school climate,
promote school safety, begin delete and end delete increase pupil achievement, and
prioritize mental health and intervention services, restorative and
transformative justice programs, and positive behavior
interventions and support.

SEC. 33.  

Section 35182.5 of the Education Code is amended
to read:

35182.5.  

(a) The Legislature finds and declares all of the
following:

(1) State and federal laws require all schools participating in
meal programs to provide nutritious food and beverages to pupils.

(2) State and federal laws restrict the sale of food and beverages
in competition with meal programs to enhance the nutritional goals
for pupils, and to protect the fiscal and nutritional integrity of the
school food service programs.

(3) Parents, pupils, and community members should have the
opportunity to ensure, through the review of food and beverage
contracts, that food and beverages sold on school campuses provide
nutritious sustenance to pupils, promote good health, help pupils
learn, provide energy, and model fit living for life.

(b) For purposes of this section, the following terms have the
following meanings:

(1) “Nonnutritious beverages” means any beverage that is not
any of the following:

(A) Drinking water.

(B) Milk, including, but not limited to, chocolate milk, soy milk,
rice milk, and other similar dairy or nondairy milk.

(C) An electrolyte replacement beverage that contains 42 grams
or less of added sweetener per 20 ounce serving.

(D) A 100 percent fruit juice, or fruit-based drink that is
composed of 50 percent or more fruit juice and that has no added
sweeteners.

(2) “Added sweetener” means begin delete any end delete begin insert an end insert additive that enhances
the sweetness of the beverage, including, but not limited to, added
sugar, but does not include the natural sugar or sugars that are
contained within any fruit juice that is a component of the beverage.

(3) “Nonnutritious food” means food that is not sold as part of
the school breakfast or lunch program as a full meal, and that meets
any of the following standards:

(A) More than 35 percent of its total calories are from fat.

(B) More than 10 percent of its total calories are from saturated
fat.

(C) More than 35 percent of its total weight is composed of
sugar. This subparagraph does not apply to the sale of fruits or
vegetables.

(c) The governing board of a school district shall not do any of
the following:

(1) Enter into or renew a contract begin insert , end insert or permit a school within the
district to enter into or renew a contract begin insert , end insert that grants exclusive or
nonexclusive advertising or grants the right to the exclusive or
nonexclusive sale of carbonated beverages or nonnutritious
beverages or nonnutritious food within the district to a person,
business, or corporation, unless the governing board of the school
district does all of the following:

(A) Adopts a policy after a public hearing of the governing
board of the school district to ensure that the school district has
internal controls in place to protect the integrity of the public funds
and to ensure that funds raised benefit public education, and that
the contracts are entered into on a competitive basis pursuant to
procedures contained in Section 20111 of the Public Contract Code
or through the issuance of a Request for Proposal.

(B) Provides to parents, guardians, pupils, and members of the
public the opportunity to comment on the contract by holding a
public hearing on the contract during a regularly scheduled board
meeting. The governing board of the school district shall clearly,
and in a manner recognizable to the general public, identify in the
agenda the contract to be discussed at the meeting.

(2) Enter into a contract that prohibits a school district employee
from disparaging the goods or services of the party contracting
with the governing board of the school district.

(3) Enter into a contract or permit a school within the district
to enter into a contract for electronic products or services that
requires the dissemination of advertising to pupils, unless the
governing board of the school district does all of the following:

(A) Enters into the contract at a noticed public hearing of the
governing board of the school district.

(B) Makes a finding that the electronic product or service in
question is or would be an integral component of the education of
pupils.

(C) Makes a finding that the school district cannot afford to
provide the electronic product or service unless it contracts to
permit dissemination of advertising to pupils.

(D) Provides written notice to the parents or guardians of pupils
that the advertising will be used in the classroom or other learning
centers. This notice shall be part of the school district’s normal
ongoing communication to parents or guardians.

(E) Offers the parents the opportunity to request in writing that
the pupil not be exposed to the program that contains the
advertising. begin delete Any end delete begin insert A end insert request shall be honored for the school year in
which it is submitted, or longer if specified, but may be withdrawn
by the parents or guardians at any time.

(d) A governing board of the school district may meet the public
hearing requirement set forth in subparagraph (B) of paragraph
(1) of subdivision (c) for those contracts that grant the right to the
exclusive or nonexclusive sale of carbonated beverages or
nonnutritious beverages or nonnutritious food within the district,
by an annual public hearing to review and discuss existing and
potential contracts for the sale of food and beverages on campuses,
including food and beverages sold as full meals, through
competitive sales, as fundraisers, and through vending machines.

(1) The public hearing shall include, but not be limited to, a
discussion of all of the following:

(A) The nutritional value of food and beverages sold within the
district.

(B) The availability of fresh fruit, vegetables, and grains in
school meals and snacks, including, but not limited to, locally
grown and organic produce.

(C) The amount of fat, sugar, and additives in the food and
beverages discussed.

(D) Barriers to pupil participation in school breakfast and lunch
programs.

(2) A school district that holds an annual public hearing
consistent with this subdivision is not released from the public
hearing requirements set forth in subparagraph (B) of paragraph
(1) of subdivision (c) for those contracts not discussed at the annual
public hearing.

(e) The governing board of the school district shall make
accessible to the public begin delete any end delete begin insert a end insert contract entered into pursuant to
paragraph (1) of subdivision (c) and may not include in that
contract a confidentiality clause that would prevent a school or
school district from making any part of the contract public.

(f) The governing board of a school district may sell advertising,
products, or services on a nonexclusive basis.

(g) The governing board of a school district may post public
signs indicating the school district’s appreciation for the support
of a person or business for the school district’s education program.

(h) Contracts entered into before January 1, 2004, may remain
in effect, but begin delete may end delete begin insert shall end insert not be renewed if they are in conflict with
this section.

SEC. 34.  

Section 41329.575 of the Education Code is amended
to read:

41329.575.  

(a) (1) Pursuant to a schedule provided to the
Controller by the bank, commencing with the 2013-14 fiscal year,
the Controller shall transfer from Section A of the State School
Fund and the Education Protection Account the amount of funds
necessary to pay the warrants issued pursuant to paragraph (3) so
that the effective cost of the lease financing for each fiscal year
from 2013-14 to 2029-30, inclusive, provided to the South
Monterey County Joint Union High School District pursuant to
Chapter 20 of the begin delete Statues end delete begin insert Statutes end insert of 2009 shall be equal to the
cost of providing an emergency General Fund cashflow loan to
the South Monterey County Joint Union High School District for
each fiscal year from 2013-14 to 2029-30, inclusive.

(2) For purposes of determining the cost of providing an
emergency General Fund cashflow loan to the South Monterey
County Joint Union High School District for fiscal years 2013-14
to 2029-30, inclusive, for the South Monterey County Joint Union
High School District, the original interest rate is equal to the annual
rate of return earned by the Pooled Money Investment Account
for the applicable fiscal year, plus an additional 2 percent. This
rate shall also apply to disbursements of the loan pursuant to
Chapter 20 of the Statutes of 2009 that are subsequent to September
15, 2013.

(3) The executive director or chair of the bank shall periodically
provide a schedule to the Controller and the South Monterey
County Joint Union High School District of the actual amount of
the difference between the annual cost of the lease financing
compared to the annual cost of providing the South Monterey
County Joint Union High School District with an emergency
General Fund cashflow loan for each applicable fiscal year and
the Controller shall issue warrants to the South Monterey County
Joint Union High School District pursuant to the schedule.
Payments to the South Monterey County Joint Union High School
District shall occur only during the term of the loan for the South
Monterey County Joint Union High School District and shall be
made no sooner than the corresponding payments are made to the
bond trustee under the lease financing for the South Monterey
County Joint Union High School District.

(4) For purposes of making the computations required by Section
8 of Article XVI of the California Constitution, the warrants issued
pursuant to paragraph (3) are “General Fund revenues appropriated
for school districts,” as defined in subdivision (c) of Section 41202
for the fiscal years in which the warrants are issued and included
within the “total allocations to school districts and community
college districts from General Fund proceeds of taxes appropriated
pursuant to Article XIII B,” as defined in subdivision (e) of Section
41202, for the fiscal years in which the warrants are issued.

(b) It is the intent of the Legislature that the financing cost
subsidies funded in this section not be deemed precedent nor in
conflict with Chapter 20 of the Statutes of 2009.

SEC. 35.  

Section 42238.03 of the Education Code is amended
to read:

42238.03.  

(a) Commencing with the 2013-14 fiscal year and
each fiscal year thereafter, the Superintendent shall calculate a
base entitlement for the transition to the local control funding
formula for each school district and charter school equal to the
sum of the amounts computed pursuant to paragraphs (1) to (4),
inclusive. The amounts computed pursuant to paragraphs (1) to
(4), inclusive, shall be continuously appropriated pursuant to
Section 14002.

(1) The current fiscal year base entitlement funding level shall
be the sum of all of the following:

(A) For school districts, revenue limits in the 2012-13 fiscal
year as computed pursuant to Article 2 (commencing with Section
42238), as that article read on January 1, 2013, divided by the
2012-13 average daily attendance of the school district computed
pursuant to Section 42238.05. That quotient shall be multiplied
by the current fiscal year average daily attendance of the school
district computed pursuant begin insert to end insert Section 42238.05. A school district’s
2012-13 fiscal year revenue limit funding shall exclude amounts
computed pursuant to Article 4 (commencing with Section 42280).

(B) (i) For charter schools, general purpose funding as
computed pursuant to Article 2 (commencing with Section 47633)
of Chapter 6, as that article read on January 1, 2013, and the
amount of in-lieu property tax provided to the charter school
pursuant to Section 47635, as that section read on June 30, 2013,
divided by the 2012-13 average daily attendance of the charter
school computed pursuant to Section 42238.05. That quotient shall
be multiplied by the current fiscal year average daily attendance
of the charter school computed pursuant to Section 42238.05.

(ii) The amount computed pursuant to clause (i) shall exclude
funds received by a charter school pursuant to Section 47634.1,
as that section read on January 1, 2013.

(C) The amount computed pursuant to subparagraph (A) shall
exclude funds received pursuant to Section 47633, as that section
read on January 1, 2013.

(D) For school districts, funding for qualifying necessary small
high school and necessary small elementary schools shall be
adjusted to reflect the funding levels that correspond to the 2012-13
necessary small high school and necessary small elementary school
allowances pursuant begin insert to end insert Article 4 (commencing with Section 42280)
and Section 42238.146, as those provisions read on January 1,
2013.

(2) Entitlements from items contained in Section 2.00, as
adjusted pursuant to Section 12.42, of the Budget Act of 2012 for
Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
6110-111-0001, 6110-124-0001, 6110-128-0001, 6110-137-0001,
6110-144-0001, 6110-156-0001, 6110-181-0001, 6110-188-0001,
6110-189-0001, 6110-190-0001, 6110-193-0001, 6110-195-0001,
6110-198-0001, 6110-204-0001, 6110-208-0001, 6110-209-0001,
6110-211-0001, 6110-212-0001, 6110-227-0001, 6110-228-0001,
6110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-267-0001,
6110-268-0001, begin insert and end insert 6360-101-0001, 2012-13 fiscal year funding
for the Class Size Reduction Program pursuant to Chapter 6.10
(commencing with Section 52120) of Part 28 of Division 4, as it
read on January 1, 2013, and 2012-13 fiscal year funding for pupils
enrolled in community day schools who are mandatorily expelled
pursuant to subdivision (d) of Section 48915. The entitlement for
basic aid school districts shall include the reduction of 8.92 percent
as applied pursuant to subparagraph (A) of paragraph (1) of
subdivision (a) of Section 3 of Chapter 2 of the Statutes of 2012.

(3) The allocations pursuant to Sections 42606 and 47634.1, as
those sections read on January 1, 2013, divided by the 2012-13
average daily attendance of the charter school computed pursuant
to Section 42238.05. That quotient shall be multiplied by the
current fiscal year average daily attendance of the charter school
computed pursuant to Section 42238.05.

(4) The amount allocated to a school district or charter school
pursuant to paragraph (3) of subdivision (b) for the fiscal years
before the current fiscal year divided by the average daily
attendance of the school district or charter school for the fiscal
years before the current fiscal year computed pursuant to Section
42238.05. That quotient shall be multiplied by the current fiscal
year average daily attendance of the school district or charter school
computed pursuant to Section 42238.05.

(5) (A) For the 2013-14 and 2014-15 fiscal years only, a school
district that, in the 2012-13 fiscal year, from any of the funding
sources identified in paragraph (1) or (2), received funds on behalf
of, or provided funds to, a regional occupational center or program
joint powers agency established in accordance with Article 1
(commencing with Section 6500) of Chapter 5 of Division 7 of
Title 1 of the Government Code for purposes of providing
instruction to secondary pupils shall not redirect that funding for
another purpose unless otherwise authorized in law or pursuant to
an agreement between the regional occupational center or program
joint powers agency and the contracting school district.

(B) For the 2013-14 and 2014-15 fiscal years only, if a regional
occupational center or program joint powers agency established
in accordance with Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code for
purposes of providing instruction to pupils enrolled in grades 9 to
12, inclusive, received, in the 2012-13 fiscal year, an
apportionment of funds directly from any of the funding sources
identified in subparagraph (A) of paragraph (2) of subdivision (a),
the Superintendent shall apportion that same amount to the regional
occupational center or program joint powers agency.

(6) (A) (i) For the 2013-14 and 2014-15 fiscal years only, a
school district that, in the 2012-13 fiscal year, from any of the
funding sources identified in paragraph (1) or (2), received funds
on behalf of, or provided funds to, a home-to-school transportation
joint powers agency established in accordance with Article 1
(commencing with Section 6500) of Chapter 5 of Division 7 of
Title 1 of the Government Code for purposes of providing pupil
transportation shall not redirect that funding for another purpose
unless otherwise authorized in law or pursuant to an agreement
between the home-to-school transportation joint powers agency
and the contracting school district.

(ii) For the 2013-14 and 2014-15 fiscal years only, if a
home-to-school transportation joint powers agency established in
accordance with Article 1 (commencing with Section 6500) of
Chapter 5 of Division 7 of Title 1 of the Government Code for
purposes of providing pupil transportation received, in the 2012-13
fiscal year, an apportionment of funds directly from the
Superintendent from any of the funding sources identified in
subparagraph (A) of paragraph (2) of subdivision (a), the
Superintendent shall apportion that same amount to the
home-to-school transportation joint powers agency.

(B) In addition to subparagraph (A), of the funds a school district
receives for home-to-school transportation programs the school
district shall expend, pursuant to Article 2 (commencing with
Section 39820) of Chapter 1 of Part 23.5, Article 10 (commencing
with Section 41850) of Chapter 5, and the Small School District
Transportation program, as set forth in Article 4.5 (commencing
with Section 42290) of Chapter 7 of Part 24 of Division 3 of Title
2, no less for those programs than the amount of funds the school
district expended for home-to-school transportation in the 2012-13
fiscal year.

(7) For the 2013-14 and 2014-15 fiscal years only, of the funds
a school district receives for purposes of regional occupational
centers or programs, or adult education, the school district shall
expend no less than the amount of funds the school district
expended for purposes of regional occupational centers or
programs, or adult education, respectively, in the 2012-13 fiscal
year. For purposes of this paragraph, a school district may include
expenditures made by its county office of education within the
school district for purposes of regional occupational centers or
programs so long as the total amount of expenditures by the school
district and the county office of education equal or exceed the total
amount required to be expended for purposes of regional
occupational centers or programs pursuant to this paragraph and
paragraph (3) of subdivision (k) of Section 2575.

(b) Compute an annual local control funding formula transition
adjustment for each school district and charter school as follows:

(1) Subtract the amount computed pursuant to paragraphs (1)
to (4), inclusive, of subdivision (a) from the amount computed for
each school district or charter school under the local control
funding formula entitlements computed pursuant to Section
42238.02. School districts and charter schools with a negative
difference shall be deemed to have a zero difference.

(2) Each school district’s and charter school’s total need, as
calculated pursuant to paragraph (1), shall be divided by the sum
of all school districts’ and charter schools’ total need to determine
the school district’s or charter school’s respective proportions of
total need.

(3) Each school district’s and charter school’s proportion of
total need shall be multiplied by any available appropriations
specifically made for purposes of this subdivision, and added to
the school district’s or charter school’s funding amounts as
calculated pursuant to subdivision (a).

(4) If the total amount of funds appropriated for purposes of
paragraph (3) pursuant to this subdivision are sufficient to fully
fund any positive amounts computed pursuant to paragraph (1),
the local control funding formula grant computed pursuant to
subdivision (c) of Section 42238.02 shall be adjusted to ensure
that any available appropriation authority is expended for purposes
of the local control funding formula.

(5) Commencing with the first fiscal year after either paragraph
(4) of this subdivision or paragraph (2) of subdivision (g) applies,
the adjustments in paragraph (2) of subdivision (d) of Section
42238.02 shall be made only if an appropriation for those
adjustments is included in the annual Budget Act.

(c) The Superintendent shall subtract from the amounts
computed pursuant to subdivisions (a) and (b) the sum of the
following:

(1) (A) For school districts, the property tax revenue received
pursuant to Chapter 3.5 (commencing with Section 75) and Chapter
6 (commencing with Section 95) of Part 0.5 of Division 1 of the
Revenue and Taxation Code.

(B) For charter schools, the in-lieu property tax amount provided
to a charter school pursuant to Section 47635.

(2) The amount, if any, received pursuant to Part 18.5
(commencing with Section 38101) of Division 2 of the Revenue
and Taxation Code.

(3) The amount, if any, received pursuant to Chapter 3
(commencing with Section 16140) of Part 1 of Division 4 of Title
2 of the Government Code.

(4) Prior years’ taxes and taxes on the unsecured roll.

(5) Fifty percent of the amount received pursuant to Section
41603.

(6) The amount, if any, received pursuant to the Community
Redevelopment Law (Part 1 (commencing with Section 33000)
of Division 24 of the Health and Safety Code), less any amount
received pursuant to Section 33401 or 33676 of the Health and
Safety Code that is used for land acquisition, facility construction,
reconstruction, or remodeling, or deferred maintenance and that
is not an amount received pursuant to Section 33492.15, or
paragraph (4) of subdivision (a) of Section 33607.5, or Section
33607.7 of the Health and Safety Code that is allocated exclusively
for educational facilities.

(7) The amount, if any, received pursuant to Sections 34177,
34179.5, 34179.6, 34183, and 34188 of the Health and Safety
Code.

(8) Revenue received pursuant to subparagraph (B) of paragraph
(3) of subdivision (e) of Section 36 of Article XIII of the California
Constitution.

(d) A school district or charter school that has a zero difference
pursuant to paragraph (1) of subdivision (b) in the prior fiscal year
shall receive an entitlement equal to the amount calculated pursuant
to Section 42238.02 in the current fiscal year and future fiscal
years.

(e) Notwithstanding the computations pursuant to subdivisions
(b) to (d), inclusive, and Section 42238.02, commencing with the
2013-14 fiscal year, a school district or charter school shall receive
state-aid funding of no less than the sum of the amounts computed
pursuant to paragraphs (1) to (3), inclusive.

(1) (A) For school districts, revenue limits in the 2012-13 fiscal
year as computed pursuant to Article 2 (commencing with Section
42238), as that article read on January 1, 2013, divided by the
2012-13 average daily attendance of the school district computed
pursuant to Section 42238.05. That quotient shall be multiplied
by the current fiscal year average daily attendance of the school
district computed pursuant Section 42238.05. A school district’s
2012-13 revenue limit funding shall exclude amounts computed
pursuant to Article 4 (commencing with Section 42280).

(B) (i) For charter schools, general purpose funding in the
2012-13 fiscal year as computed pursuant to Article 2
(commencing with Section 47633) of Chapter 6, as that article
read on January 1, 2013, and the amount of in-lieu property tax
provided to the charter school in the 2012-13 fiscal year pursuant
to Section 47635, as that section read on January 1, 2013, divided
by the 2012-13 average daily attendance of the charter school
computed pursuant to Section 42238.05. That quotient shall be
multiplied by the current fiscal year average daily attendance of
the charter school computed pursuant to Section 42238.05.

(ii) The amount computed pursuant to clause (i) shall exclude
funds received by a charter school pursuant to Section 47634.1,
as that section read on January 1, 2013.

(C) The amount computed pursuant to subparagraph (A) shall
exclude funds received pursuant to Section 47633, as that section
read on January 1, 2013.

(D) For school districts, the 2012-13 funding allowance
provided for qualifying necessary small high schools and necessary
small elementary schools pursuant to Article 4 (commencing with
Section 42280) and Section 42238.146, as those provisions read
on January 1, 2013.

(E) The amount computed pursuant to subparagraphs (A) to
(D), inclusive, shall be reduced by the sum of the amount computed
pursuant to paragraphs (1) to (8), inclusive, of subdivision (c).

(2) (A) Entitlements from items contained in Section 2.00, as
adjusted pursuant to Section 12.42, of the Budget Act of 2012 for
Items 6110-104-0001, 6110-105-0001, 6110-108-0001,
6110-111-0001, 6110-124-0001, 6110-128-0001, 6110-137-0001,
6110-144-0001, 6110-156-0001, 6110-181-0001, 6110-188-0001,
6110-189-0001, 6110-190-0001, 6110-193-0001, 6110-195-0001,
6110-198-0001, 6110-204-0001, 6110-208-0001, 6110-209-0001,
6110-211-0001, 6110-212-0001, 6110-227-0001, 6110-228-0001,
6110-232-0001, 6110-240-0001, 6110-242-0001, 6110-243-0001,
6110-244-0001, 6110-245-0001, 6110-246-0001, 6110-247-0001,
6110-248-0001, 6110-260-0001, 6110-265-0001, 6110-267-0001,
6110-268-0001, begin insert and end insert 6360-101-0001, 2012-13 fiscal year funding
for the Class Size Reduction Program pursuant to Chapter 6.10
(commencing with Section 52120) of Part 28 of Division 4, as it
read on January 1, 2013, and 2012-13 fiscal year funding for pupils
enrolled in community day schools who are mandatorily expelled
pursuant to subdivision (d) of Section 48915. Notwithstanding
Section 39 of Chapter 38 of the Statutes of 2012, the entitlement
for basic aid school districts shall include the reduction of 8.92
percent as applied pursuant to subparagraph (A) of paragraph (1)
of subdivision (a) of Section 3 of Chapter 2 of the Statutes of 2012.

(B) The Superintendent shall annually apportion any entitlement
provided to the state special schools from the items specified in
subparagraph (A) to the state special schools in the same amount
as the state special schools received from those items in the
2012-13 fiscal year.

(3) The allocations pursuant to Sections 42606 and 47634.1, as
those sections read on January 1, 2013, divided by the 2012-13
average daily attendance of the charter school. That quotient shall
be multiplied by the current fiscal year average daily attendance
of the charter school.

(f) (1) For purposes of this section, commencing with the
2013-14 fiscal year and until all school districts and charter schools
equal or exceed their local control funding formula target computed
pursuant to Section 42238.02, as determined by the calculation of
a zero difference pursuant to paragraph (1) of subdivision (b), a
newly operational charter school shall be determined to have a
prior year per average daily attendance funding amount equal to
the lesser of:

(A) The prior year funding amount per unit of average daily
attendance for the school district in which the charter school is
physically located. The Superintendent shall calculate the funding
amount per unit of average daily attendance for this purpose by
dividing the total local control funding formula entitlement,
calculated pursuant to subdivisions (a) and (b), received by that
school district in the prior year by prior year funded average daily
attendance of that school district. For purposes of this
subparagraph, a charter school that is physically located in more
than one school district shall use the calculated local control
funding entitlement per unit of average daily attendance of the
school district with the highest prior year funding amount per unit
of average daily attendance.

(B) The charter school’s local control funding formula rate
computed pursuant to subdivisions (c) to (i), inclusive, of Section
42238.02.

(2) For charter schools funded pursuant to paragraph (1), the
charter school shall be eligible to receive growth funding pursuant
to subdivision (b) toward meeting the newly operational charter
school’s local control funding formula target.

(3) Upon a determination that all school districts and charter
schools equal or exceed the local control funding formula target
computed pursuant to Section 42238.02, as determined by the
calculation of a zero difference pursuant to paragraph (1) of
subdivision (b) for all school districts and charter schools, this
subdivision shall not apply and the charter school shall receive an
allocation equal to the amount calculated under Section 42238.02
in that fiscal year and future fiscal years.

(g) (1) In each fiscal year the Superintendent shall determine
the percentage of school districts that are apportioned funding
pursuant to this section that is less than the amount computed
pursuant to Section 42238.02 as of the second principal
apportionments of the fiscal year. If the percentage is less than 10
percent, the Superintendent shall apportion funding to school
districts and charter schools equal to the amount computed pursuant
to Section 42238.02 in that fiscal year.

(2) For each fiscal year thereafter, the Superintendent shall
apportion funding to a school district and charter school equal to
the amount computed pursuant to Section 42238.02.

SEC. 36.  

Section 42283 of the Education Code is amended to
read:

42283.  

(a) For purposes of Sections 42281 and 42282, a
“necessary small school” is an elementary school with an average
daily attendance of less than 97, begin delete exclusive of end delete begin insert excluding end insert pupils
attending the seventh and eighth grades of a junior high school,
maintained by a school district to which any of the following
conditions apply:

(1) If as many as five pupils residing in the school district and
attending kindergarten and grades 1 to 8, inclusive, begin delete exclusive of end delete
begin insert excluding end insert pupils attending the seventh and eighth grades of a junior
high school begin insert , end insert in the elementary school with an average daily
attendance of less than 97 would be required to travel more than
10 miles one way from a point on a well-traveled road nearest their
home to the nearest other public elementary school.

(2) If as many as 15 pupils residing in the school district and
attending kindergarten and grades 1 to 8, inclusive, begin delete exclusive of end delete
begin insert excluding end insert pupils attending the seventh and eighth grades of a junior
high school begin insert , end insert in the elementary school with an average daily
attendance of less than 97 would be required to travel more than
five miles one way from a point on a well-traveled road nearest
their home to the nearest other public elementary school.

(3) If topographical or other conditions exist in a school district
which would impose unusual hardships if the number of miles
specified in paragraph (1) or (2) were required to be traveled, or
if during the fiscal year the roads which would be traveled have
been impassable for more than an average of two weeks per year
for the preceding five years, the governing board of the school
district may, on or before April 1, request the Superintendent, in
writing, for an exemption from these requirements or for a
reduction in the miles required. The request shall be accompanied
by a statement of the conditions upon which the request is based,
giving the information in a form required by the Superintendent.
The Superintendent shall cause an investigation to be made, and
shall either grant the request to the extent he or she deems
necessary, or deny the request.

(b) For purposes of this section, “other public elementary
school” is a public school, including a charter school, that serves
kindergarten or any of grades 1 to 8, inclusive, exclusive of grades
7 and 8 of a junior high school.

SEC. 37.  

Section 44212 of the Education Code is amended to
read:

44212.  

(a) (1) The Regents of the University of California,
the Trustees of the California State University, the California
Postsecondary Education Commission, and the Association of
Independent California Colleges and Universities shall each appoint
a representative to serve as member ex officio without vote in
proceedings of the commission.

(2) The Board of Governors of the California Community
Colleges may appoint an alternate representative to serve as an ex
officio member in the absence of the California Postsecondary
Education Commission’s representative.

(b) The ex officio members shall not vote in the proceedings of
the commission begin delete nor end delete begin insert or end insert in any of its committees or subcommittees,
except, by a majority vote of the commission, ex officio members
may be permitted to vote in committees or subcommittees in order
to establish a quorum or as otherwise determined by majority vote
of the commission.

SEC. 38.  

Section 44956 of the Education Code is amended to
read:

44956.  

begin delete (a) end delete begin delete   end delete Any permanent employee whose services have been
terminated as provided in Section 44955 shall have the following
rights:

begin delete

(1) 

end delete

begin insert (a) end insert begin insert   end insert For the period of 39 months from the date of begin delete such end delete begin insert the end insert
termination, any employee who in the meantime has not attained
the age of 65 years shall have the preferred right to reappointment,
in the order of original employment as determined by the board
in accordance with begin delete the provisions of end delete Sections 44831 to 44855,
inclusive, if the number of employees is increased or the
discontinued service is reestablished, with no requirements that
were not imposed upon other employees who continued in service;
provided, that no probationary or other employee with less seniority
shall be employed to render a service begin delete which said end delete begin insert that the end insert employee
is certificated and competent to render. However, prior to
reappointing any employee to teach a subject begin delete which end delete begin insert that end insert he or she
has not previously taught, and for which he or she does not have
a teaching credential or begin delete which end delete begin insert that end insert is not within the employee’s
major area of postsecondary study or the equivalent thereof, the
governing board shall require the employee to pass a subject matter
competency test in the appropriate subject.

begin delete

(2)

end delete

begin insert (b) end insert  The begin delete aforesaid end delete right to reappointment begin insert described in subdivision
(a) end insert may be waived by the employee, without prejudice, for not
more than one school year, unless the board extends this right, but
begin delete such end delete begin insert the end insert waiver shall not deprive the employee of his begin insert or her end insert right
to subsequent offers of reappointment.

begin delete

(3)

end delete

begin insert (c) end insert  Notwithstanding begin delete paragraph (1) end delete begin insert subdivision (a) end insert , a school
district may deviate from reappointing a certificated employee in
order of seniority for either of the following reasons:

begin delete

(A)

end delete

begin insert (1) end insert  The district demonstrates a specific need for personnel to
teach a specific course or course of study, or to provide services
authorized by a services credential with a specialization in either
pupil personnel services or health for a school nurse, and that the
employee has special training and experience necessary to teach
that course or course of study, or to provide those services, begin delete which end delete
begin insert that end insert others with more seniority do not possess.

begin delete

(B)

end delete

begin insert (2) end insert  For purposes of maintaining or achieving compliance with
constitutional requirements related to equal protection of the laws.

begin delete

(4)

end delete

begin insert (d) end insert  As to any begin delete such end delete employee who is reappointed, the period of
his begin insert or her end insert absence shall be treated as a leave of absence and shall
not be considered as a break in the continuity of his begin insert or her end insert service,
he begin insert or she end insert shall retain the classification and order of employment
he begin insert or she end insert had when his begin insert or her end insert services were terminated, and credit
for prior service under any state or district retirement system shall
not be affected by such termination, but the period of his begin insert or her end insert
absence shall not count as a part of the service required for
retirement.

begin delete

(5)

end delete

begin insert (e) end insert  During the period of his begin insert or her end insert preferred right to
reappointment, begin delete any such end delete begin insert an end insert employee shall, in the order of original
employment, be offered prior opportunity for substitute service
during the absence of any other employee who has been granted
a leave of absence or who is temporarily absent from duty;
provided, that his begin insert or her end insert services may be terminated upon the
return to duty of begin delete said end delete begin insert the end insert other employee and that begin delete said end delete substitute
service shall not affect the retention of his begin insert or her end insert previous
classification and rights. If, in any school year the employee serves
as a substitute in any position requiring certification for begin delete any end delete 21
days or more within a period of 60 schooldays, the compensation
the employee receives for substitute service in that 60-day period,
including his or her first 20 days of substitute service, shall be not
less than the amount the employee would receive if he or she were
being reappointed.

begin delete

(6)

end delete

begin insert (f) end insert begin insert   end insert begin insert (1) end insert  During the period of the employee’s preferred right to
reappointment, the governing board of the district, if it is also the
governing board of one or more other districts, may assign him begin insert or
her end insert to service, which he begin insert or she end insert is certificated and competent to
render, in begin delete said other end delete begin insert another end insert district or districts; provided, that the
compensation he begin insert or she end insert receives therefor may begin insert , end insert in the discretion of
the governing board begin insert , end insert be the same as he begin insert or she end insert would have received
had he begin insert or she end insert been serving in the district from which his begin insert or her end insert
services were terminated, that his begin insert or her end insert service in the begin delete said end delete other
district or districts shall be counted toward the period required for
both state and local retirement begin delete , as defined by Section 22102, end delete as
though rendered in the district from which his begin insert or her end insert services were
terminated, and that no permanent employee in begin delete said end delete begin insert the end insert other
district or districts shall be displaced by him begin insert or her end insert .

begin delete

It

end delete

begin insert (2) end insert begin insert   end insert begin insert It end insert is the intent of this begin delete subsection end delete begin insert subdivision end insert that the
employees of a school district, the governing board of which is
also the governing board of one or more other school districts,
shall not be at a disadvantage as compared with employees of a
unified school district.

begin delete

(7)

end delete

begin insert (g) end insert  At any time prior to the completion of one year after his begin insert or
her end insert return to service, he begin insert or she end insert may continue or make up, with
interest, his begin insert or her end insert own contributions to any state or district
retirement system, for the period of his begin insert or her end insert absence, but it shall
not be obligatory on state or district to match begin delete such end delete begin insert those end insert
contributions.

begin delete

(8)

end delete

begin insert (h) end insert  Should he begin insert or she end insert become disabled or reach retirement age
at any time before his begin insert or her end insert return to service, he begin insert or she end insert shall
receive, in any state or district retirement system of which he begin insert or
she end insert was a member, all benefits to which he begin insert or she end insert would have been
entitled had such event occurred at the time of his begin insert or her end insert
termination of service, plus any benefits he begin insert or she end insert may have
qualified for thereafter, as though still employed.

SEC. 39.  

Section 49085 of the Education Code is amended to
read:

49085.  

(a) On or before February 1, 2014, the department and
the State Department of Social Services shall develop and enter
into a memorandum of understanding that shall, at a minimum,
require the State Department of Social Services, at least once per
week, to share with the department both of the following:

(1) Disaggregated information on children and youth in foster
care sufficient for the department to identify pupils in foster care.

(2) Disaggregated data on children and youth in foster care that
is helpful to county offices of education and other local educational
agencies responsible for ensuring that pupils in foster care begin delete received end delete
begin insert receive end insert appropriate educational supports and services.

(b) To the extent allowable under federal law, the department
shall regularly identify pupils in foster care and designate those
pupils in the California Longitudinal Pupil Achievement Data
System or any future data system used by the department to collect
disaggregated pupil outcome data.

(c) To the extent allowable under federal law, the
Superintendent, on or before July 1 of each even-numbered year,
shall report to the Legislature and the Governor on the educational
outcomes for pupils in foster care at both the individual schoolsite
level and school district level. The report shall include, but is not
limited to, all of the following:

(1) Individual schoolsite level and school district level
educational outcome data for each local educational agency that
enrolls at least 15 pupils in foster care, each county in which at
least 15 pupils in foster care attend school, and for the entire state.

(2) The number of pupils in foster care statewide and by each
local educational agency.

(3) The academic achievement of pupils in foster care.

(4) The incidence of suspension and expulsion for pupils in
foster care.

(5) Truancy rates, attendance rates, and dropout rates for pupils
in foster care.

(d) To the extent allowable under federal law, the department,
at least once per week, shall do all of the following:

(1) Inform school districts and charter schools of any pupils
enrolled in those school districts or charter schools who are in
foster care.

(2) Inform county offices of education of any pupils enrolled
in schools in the county who are in foster care.

(3) Provide schools districts, county office of education, and
charter schools disaggregated data helpful to ensuring pupils in
foster care receive appropriate educational supports and services.

(e) For purposes of this section “pupil in foster care” has the
same meaning as “foster youth,” as defined in Section 42238.01.

SEC. 40.  

Section 49557.2 of the Education Code is amended
to read:

49557.2.  

(a) (1) At the option of the school district or county
superintendent, and to the extent necessary to implement Section
14005.41 of the Welfare and Institutions Code, the following
information may be incorporated into the School Lunch Program
application packet or notification of eligibility for the School Lunch
Program using simple and culturally appropriate language:

(A) A notification that if a child qualifies for free school lunches,
then the child may qualify for free or reduced-cost health coverage.

(B) A request for the applicant’s consent for the child to
participate in the Medi-Cal program, if eligible for free school
lunches, and to have the information on the school lunch
application shared with the entity designated by the State
Department of Health Care Services to make an accelerated
determination and the local agency that determines eligibility under
the Medi-Cal program.

(C) A notification that the school district will not forward the
school lunch application to the entity designated by the State
Department of Health Care Services to make an accelerated
determination and the local agency that determines eligibility under
the Medi-Cal program, without the consent of the child’s parent
or guardian.

(D) A notification that the school lunch application is
confidential and, with the exception of forwarding the information
for use in health program enrollment upon the consent of the child’s
parent or guardian, the school district will not share the information
with any other governmental agency, including the federal
Department of Homeland Security and the Social Security
Administration.

(E) A notification that the school lunch application information
will only be used by the entity designated by the State Department
of Health Care Services to make an accelerated determination and
the state and local agencies that administer the Medi-Cal program
for purposes directly related to the administration of the begin insert Medi-Cal end insert
program and will not be shared with other begin delete government end delete
begin insert governmental end insert agencies, including the begin insert federal end insert Department of
Homeland Security and the Social Security Administration for any
purpose other than the administration of the Medi-Cal program.

(F) Information regarding the Medi-Cal program, including
available services, program requirements, rights and
responsibilities, and privacy and confidentiality requirements.

(2) The department, in consultation with school districts, county
superintendents of schools, consumer advocates, counties, the State
Department of Health Care Services, and other stakeholders, shall
make recommendations regarding the School Lunch Program
application, on or before February 1, 2003. The recommendations
shall include specific changes to the School Lunch Program
application materials as necessary to implement Section 14005.41
of the Welfare and Institutions Code, information for staff as to
how to implement the changes, and a description of the process
by which information on the School Lunch Program application
will be shared with the county, as the local agency that determines
eligibility under the Medi-Cal program.

(3) At the option of the school, the request for consent in
subparagraph (B) of paragraph (1) may be modified so that the
parent or guardian can also consent to allowing Medi-Cal to inform
the school as provided in subdivision (n) of Section 14005.41 of
the Welfare and Institutions Code when followup is needed in
order to complete the Medi-Cal application process.

(b) (1) School districts and county superintendents of schools
may implement a process to share information provided on the
School Lunch Program application with the entity designated by
the State Department of Health Care Services to make an
accelerated determination and with the local agency that determines
eligibility under the Medi-Cal program, and shall share this
information with those entities, if the applicant consents to that
sharing of information. Schools may designate, only as necessary
to implement this section, non-food service staff to assist in the
administration of free, reduced price, or paid school lunch
applications that have applicant consent, but only if that designation
does not displace or have an adverse effect on food service staff.
This information may be shared electronically, physically, or
through whatever method is determined appropriate.

(2) If a school is aware that a child, who has been found eligible
for free school lunches under the National School Lunch Program,
and for whom the parent or guardian has consented to share the
information provided on the application, already has an active
Medi-Cal or Healthy Families case, the application shall not be
processed for an accelerated determination but shall be forwarded
to the local agency that determines eligibility under the Medi-Cal
program pursuant to Section 14005.41 of the Welfare and
Institutions Code. The school shall notify the parent or guardian
of the child’s ineligibility for an accelerated Medi-Cal
determination due to the current eligibility status and that the
child’s application will be forwarded to the county pursuant to this
section. The notice shall include a statement, with contact
information, advising the parent or guardian to contact the
Medi-Cal or Healthy Families programs regarding the child’s
eligibility status.

(3) Each school district or county superintendent that chooses
to share information pursuant to this subdivision shall enter into
a memorandum of understanding with the local agency that
determines eligibility under the Medi-Cal program, that sets forth
the roles and responsibilities of each agency and the process to be
used in sharing the information.

(4) The local agency that determines eligibility under the
Medi-Cal program shall only use information provided by
applicants on the school lunch application for purposes directly
related to the administration of the Medi-Cal program.

(5) After school districts share information regarding the school
lunch application with the entity designated by the State
Department of Health Care Services to make an accelerated
determination and the local agency that determines eligibility under
the Medi-Cal program, for the purpose of determining Medi-Cal
program eligibility, the local agency and the school district shall
not share information about school lunch participation or the
Medi-Cal program eligibility information with each other except
as specifically authorized under subdivision (n) of Section
14005.41 of the Welfare and Institutions Code and other provisions
of law.

(c) Effective July 1, 2005, the notifications and consent
referenced in subdivision (a) and the procedures set out in
subdivision (b) shall include the Healthy Families Program and
any relevant county- and local-sponsored health insurance programs
as necessary to implement Section 14005.41 of the Welfare and
Institutions Code.

(d) Effective January 1, 2014, the notifications referenced in
subdivision (a) shall do all of the following:

(1) Advise the applicant that the applicant may be eligible for
reduced-cost comprehensive health care coverage through the
California Health Benefit Exchange.

(2) Advise that, if the applicant’s family income is low, the
applicant may be eligible for no-cost coverage through Medi-Cal.

(3) Provide the applicant with the contact information for the
California Health Benefit Exchange, including its Internet Web
site and telephone number.

(4) Comply with the federal Americans with Disabilities Act
of 1990 (42 U.S.C. Sec. 12101 et seq.) and any other applicable
federal or state disabled access law.

(e) If a school district finds that the child is eligible for reduced
price or paid meals under the National School Lunch Program and
consent was provided as described in subdivision (b), the entity
designated by the State Department of Health Care Services to
make an accelerated determination shall notify the parent or
guardian of the child’s ineligibility for an accelerated Medi-Cal
determination pursuant to Section 14005.41 of the Welfare and
Institutions Code. The notification shall include information on
other available health programs for which the child may be eligible.

(f) A school district may also include the notifications in the
notifications at the beginning of the first semester or quarter of the
regular school term required pursuant to Section 48980.

(g) Upon receipt of information provided on the School Lunch
Program application pursuant to this section, for a pupil who is
not already enrolled in a health insurance affordability program,
the county shall treat the School Lunch Program application as an
application for a health insurance affordability program. For
purposes of administration of the Medi-Cal program, the
application date shall be the date that the School Lunch Program
application is received by the county human services department.
The county shall take no further action if it determines that the
pupil is already enrolled in a health insurance affordability
program.

SEC. 41.  

Section 60643 of the Education Code is amended to
read:

60643.  

(a) Notwithstanding any other law, the contractor or
contractors of the achievement tests provided for in Section 60640
shall comply with all of the conditions and requirements of the
contract to the satisfaction of the Superintendent and the state
board.

(b) (1) The department shall develop, and the Superintendent
and the state board shall approve, a contract or contracts to be
entered into with a contractor in connection with the test provided
for in Section 60640. The department may develop the contract
through negotiations. In approving a contract amendment to the
contract authorized pursuant to this section, the department, in
consultation with the state board, may make material amendments
to the contract that do not increase the contract cost. Contract
amendments that increase contract costs may only be made with
the approval of the department, the state board, and the Department
of Finance.

(2) For purposes of the contracts authorized pursuant to this
subdivision, the department is exempt from the requirements of
Part 2 (commencing with Section 10100) of Division 2 of the
Public Contract Code and from the requirements of Article 6
(commencing with Section 999) of Chapter 6 of Division 4 of the
Military and Veterans Code. The department shall use a
competitive and open process utilizing standardized scoring criteria
through which to select a potential administration contractor or
contractors for recommendation to the state board for consideration.
The state board shall consider each of the following criteria:

(A) The ability of the contractor to produce valid and reliable
scores.

(B) The ability of the contractor to report accurate results in a
timely fashion.

(C) Exclusive of the consortium assessments, the ability of the
contractor to ensure technical adequacy of the tests, inclusive of
the alignment between the Measurement of Academic Performance
and Progress begin delete (MAPP) tests end delete begin insert assessments end insert and the state-adopted
content standards.

(D) The cost of the assessment system.

(E) The ability and proposed procedures to ensure the security
and integrity of the assessment system.

(F) The experience of the contractor in successfully conducting
statewide testing programs in other states.

(3) The contracts shall include provisions for progress payments
to the contractor for work performed or costs incurred in the
performance of the contract. Not less than 10 percent of the amount
budgeted for each separate and distinct component task provided
for in each contract shall be withheld pending final completion of
all component tasks by that contractor. The total amount withheld
pending final completion shall not exceed 10 percent of the total
contract price for that fiscal year.

(4) The contracts shall require liquidated damages to be paid
by the contractor in the amount of up to 10 percent of the total cost
of the contract for any component task that the contractor through
its own fault or that of its subcontractors fails to substantially
perform by the date specified in the agreement.

(5) The contracts shall establish the process and criteria by
which the successful completion of each component task shall be
recommended by the department and approved by the state board.

(6) The contractors shall submit, as part of the contract
negotiation process, a proposed budget and invoice schedule, that
includes a detailed listing of the costs for each component task
and the expected date of the invoice for each completed component
task.

(7) The contract or contracts subject to approval by the
Superintendent and the state board under paragraph (1) and exempt
under paragraph (2) shall specify the following component tasks,
as applicable, that are separate and distinct:

(A) Development of new tests or test items.

(B) Test materials production or publication.

(C) Delivery or electronic distribution of test materials to local
educational agencies.

(D) Test processing, scoring, and analyses.

(E) Reporting of test results to the local educational agencies,
including, but not necessarily limited to, all reports specified in
this section.

(F) Reporting of valid and reliable test results to the department,
including, but not necessarily limited to, the following electronic
files:

(i) Scores aggregated statewide, and by county, school district,
school, and grade.

(ii) Disaggregated scores based on English proficiency status,
gender, ethnicity, socioeconomic disadvantage, foster care status,
and special education designation.

(G) All other analyses or reports required by the Superintendent
to meet the requirements of state and federal law and set forth in
the agreement.

(H) Technology services to support the activities listed in
subparagraphs (A) to (G), inclusive.

(I) Perform regular performance checks and load simulations
to ensure the integrity and robustness of the technology system
used to support the activities listed in subparagraphs (A) to (G),
inclusive.

SEC. 42.  

Section 60811.4 of the Education Code is amended
to read:

60811.4.  

(a) On or before January 1, 2015, the Superintendent
shall recommend to the state board modifications to the English
language development standards, adopted pursuant to begin insert former end insert
Section 60811.3, to link with the academic content standards for
mathematics adopted by the state board pursuant to Sections
60605.8 and 60605.11 and the academic content standards for
science adopted by the state board pursuant to Section 60605.85.
If the state board modifies the English language development
standards to link with the academic content standards for
mathematics and science, it shall explain, in writing, to the
Governor and the Legislature the reasons for the modification. The
Superintendent’s recommendations and the state board’s actions
shall assist schools in the implementation and application of
English language development standards in the mathematics and
science subject areas.

(b) In meeting the requirements of subdivision (a), the
Superintendent, in consultation with the state board, shall convene
a group of experts in English language instruction, curriculum,
and assessment, including individuals who have a minimum of
three years of demonstrated experience instructing English learners
in the classroom at the elementary or secondary level. The experts
shall review the mathematics and science academic content
standards to identify those standards that correspond to the English
language development standards. The Superintendent shall ensure
that members of the group include, but are not necessarily limited
to, individuals who are schoolsite principals, school district or
county office of education administrators overseeing programs
and support for English learners, personnel of teacher training
schools at institutions of higher education, and curriculum and
instructional specialists with English learner experience. At least
a majority of the members of the group of experts shall be currently
employed public schoolteachers.

(c) Before completing the requirements of subdivision (a), the
Superintendent shall hold a minimum of two public meetings
pursuant to the Bagley-Keene Open Meeting Act (Article 9
(commencing with Section 11120) of Chapter 1 of Part 1 of
Division 3 of Title 2 of the Government Code) in order for the
public to provide input regarding any modifications recommended
pursuant to this section.

(d) (1) On or before August 1, 2015, the state board shall adopt
or reject the Superintendent’s recommendations for the English
language development standards adopted pursuant to begin insert former end insert
Section 60811.3 to correspond with the state board-approved
academic content standards for mathematics adopted pursuant to
Sections 60605.8 and 60605.11 and the state board-approved
academic content standards for science begin delete approved end delete begin insert adopted end insert pursuant
to Section 60605.85.

(2) The state board shall ensure that any modifications to the
English language development standards adopted by the state board
pursuant to this section are incorporated into the appropriate
mathematics and science curriculum frameworks.

(e) This section shall not be implemented unless funds are
appropriated by the Legislature in the annual Budget Act or another
statute for its purposes.

(f) This section shall become inoperative on July 1, 2016, and
as of January 1, 2017, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2017, deletes or
extends the dates on which it becomes inoperative and is repealed.

SEC. 43.  

Section 66746 of the Education Code is amended to
read:

66746.  

(a) Commencing with the fall term of the 2011-12
academic year, a student who earns an associate degree for transfer
granted pursuant to subdivision (b) shall be deemed eligible for
transfer into a California State University baccalaureate program
when the student meets both of the following requirements:

(1) Completion of 60 semester units or 90 quarter units that are
eligible for transfer to the California State University, including
both of the following:

(A) The Intersegmental General Education Transfer Curriculum
(IGETC) or the California State University General
Education-Breadth Requirements.

(B) A minimum of 18 semester units or 27 quarter units in a
major or area of emphasis, as determined by the community college
district and meeting the requirements of an approved transfer model
curriculum.

(2) Obtainment of a minimum grade point average of 2.0.

(b) (1) (A) As a condition of receipt of state apportionment
funds, a community college district shall develop and grant
associate degrees for transfer that meet the requirements of
subdivision (a). A community college district shall not impose any
requirements in addition to the requirements of this section,
including any local college or district requirements, for a student
to be eligible for the associate degree for transfer and subsequent
admission to the California State University pursuant to Section
66747.

(B)  Before the commencement of the 2015-16 academic year,
a community college shall create an associate degree for transfer
in the major and area of emphasis offered by that college for any
approved transfer model curriculum finalized prior to the
commencement of the 2013-14 academic year.

(C) A community college shall create an associate degree for
transfer in every major and area of emphasis offered by that college
for any approved transfer model curriculum approved subsequent
to the commencement of the 2013-14 academic year within 18
months of the approval of the transfer model curriculum.

(D) Before the commencement of the 2015-16 academic year,
there shall be the development of at least two transfer model
begin delete curriculum end delete begin insert curricula end insert in areas of emphasis and, before the
commencement of the 2016-17 academic year, there shall be the
development of at least two additional transfer model begin delete curriculum end delete
begin insert curricula end insert in areas of emphasis.

(2) The condition of receipt of state apportionment funding
contained in paragraph (1) shall become inoperative if, by
December 31, 2010, each of the state’s 72 community college
districts has submitted to the Chancellor of the California
Community Colleges, for transmission to the Director of Finance,
signed certification waiving, as a local agency request within the
meaning of paragraph (1) of subdivision (a) of Section 6 of Article
XIII B of the California Constitution, any claim of reimbursement
related to the implementation of this article.

(c) A community college district is encouraged to consider the
local articulation agreements and other work between the respective
faculties from the affected community college and California State
University campuses in implementing the requirements of this
section.

(d) Community colleges are encouraged to facilitate the
acceptance of credits earned at other community colleges toward
the associate degree for transfer pursuant to this section.

(e) This section shall not preclude enrollment in nontransferable
student success courses or preclude students who are assessed
below collegiate level from acquiring remedial noncollegiate level
coursework in preparation for obtaining the associate degree.
Remedial noncollegiate level coursework and nontransferable
student success courses shall not be counted as part of the
transferable units required pursuant to paragraph (1) of subdivision
(a).

SEC. 44.  

Section 66762.5 of the Education Code is amended
to read:

66762.5.  

A matriculated CSU student shall have priority access
to online courses provided at his or her home campus. A CSU
student who meets the requirements of subdivision (a) of Section
66761, and seeks to enroll in courses provided entirely online by
another CSU campus, shall be able to enroll, provided that
cross-enrollment students generally have an opportunity to enroll
in these online courses at any time after the priority enrollment
period for continuing students, as determined by each host campus.
The begin delete host campus end delete enrollment policy begin insert of the host campus end insert shall, to
the extent possible, encourage cross-enrollment as provided for in
this chapter.

SEC. 45.  

Section 78230 of the Education Code is amended to
read:

78230.  

(a) For the purposes of this section, the following terms
have the following meanings:

(1) “Eligible community college campus” means one of the
following campuses:

(A) College of the Canyons.

(B) Crafton Hills College.

(C) Long Beach City College.

(D) Oxnard College.

(E) Pasadena City College.

(F) Solano Community College.

(2) “Eligible community college district” means a community
college district with an eligible community college campus.

(b) (1) The Office of the Chancellor of the California
Community Colleges shall establish a voluntary pilot program
through which an eligible community college campus may establish
and maintain extension programs offering credit courses during
summer and winter intersessions. The governing board of an
eligible community college district may request to participate in
the pilot program.

(2) It is the intent of the Legislature that at least one participating
campus should begin implementation of the pilot program by
January 2014, and that an additional five campuses should
implement the pilot program by July 1, 2014.

(c) An extension program established pursuant to this section
shall have all of following characteristics:

(1) The program shall be self-supporting and all costs associated
with the program shall be recovered.

(2) Enrollment in the pilot program shall not be reported for
state apportionment funding, but program enrollment shall be open
to the public pursuant to Section 51006 of Title 5 of the California
Code of Regulations.

(3) The program shall be developed in conformance with this
code and Division 6 (commencing with Section 50001) of Title 5
of the California Code of Regulations related to community college
credit courses.

(4) The program shall be subject to community college district
collective bargaining agreements.

(5) The program shall apply to all courses leading to certificates,
degrees, or transfer preparation.

(d) (1) To participate in the pilot program, an eligible
community college district shall satisfy all of the following criteria:

(A) The district shall have served a number of students equal
to, or beyond, its funding limit for the two immediately prior
academic years, as provided in the annual Budget Act and as
reported by the Office of the Chancellor of the California
Community Colleges.

(B) The district shall not have received a stability adjustment
to state apportionment funding pursuant to Section 58776 of Title
5 of the California Code of Regulations in the prior two years.

(C) All courses offered for credit that receive state
apportionment funding shall meet basic skills, transfer, or
workforce development objectives.

(D) The district shall prioritize enrollment of students in courses
offered that receive state apportionment funding in conformance
with the legal authority of the governing board of the community
college district, Section 66025.8 of this code, and Section 58108
of Title 5 of the California Code of Regulations, by promoting
policies that prioritize enrollment in courses that receive state
apportionment funding of students who are fully matriculated, as
defined in Section 78212, and making satisfactory progress toward
a basic skills, transfer, or workforce development goal.

(E) The district shall prioritize enrollment in the extension
program courses as follows:

(i) First priority shall be given to current community college
students who are eligible for resident tuition.

(ii) Second priority shall be given to students who are eligible
for resident tuition.

(F) (i) The district shall limit the enrollment of students funded
by the state in activity courses, as defined in Section 55041 of Title
5 of the California Code of Regulations. An applicant district shall
not claim state apportionment funding for students who repeat
either credit courses or noncredit physical education, or visual or
performance arts courses that are part of the same sequence of
courses, unless the student is doing so to meet degree or other local
community college district requirements and is in compliance with
Section 55041 of Title 5 of the California Code of Regulations.

(ii) This subparagraph does not apply to disabled students taking
adaptive activity courses, students participating in intercollegiate
athletics, or students with an approved educational plan majoring
in physical education or the performing arts.

(2) The Office of the Chancellor of the California Community
Colleges, to the extent feasible, shall determine whether an eligible
community college district meets the criteria outlined in paragraph
(1) prior to its participation in the pilot program.

(e)  For a student who is not categorically exempt from
nonresident tuition, the community college district shall charge
all statutorily authorized fees applicable to nonresident students,
including, but not limited to, fees authorized pursuant to Section
76141 or 76142, for his or her enrollment in courses offered
pursuant to the pilot program.

(f)  The governing board of an eligible community college
district shall not expend General Fund moneys to establish and
maintain the extension program.

(g)  An extension credit course shall not supplant any course
funded with state apportionments and shall not be offered at times
or in locations that supplant or limit the offering of programs that
receive state funding or in conjunction with courses that receive
state apportionment funding. An eligible community college district
shall not reduce a state-funded course section needed by students
to achieve basic skills, workforce training, or transfer goals, with
the intent of reestablishing those course sections as part of the
extension program. The governing board of an eligible community
college district shall annually certify compliance with this
subdivision by board action taken at a regular session of the board.

(h)  A degree credit course offered as an extension course shall
meet all of the requirements of subdivision (a) of Section 55002
of Title 5 of the California Code of Regulations, as it exists on
January 1, 2013.

(i)  The governing board of an eligible community college
district may charge students enrolled in an extension course a fee
that covers the actual cost of the course and that is based upon the
district’s nonresident fee rate for the year the course is offered.
For purposes of this subdivision, “actual cost” includes the actual
cost of instruction, necessary equipment and supplies, student
services and institutional support, and other costs of the community
college district used in calculating the costs of education for
nonresident students, including the administrative costs incurred
by the Office of the Chancellor of the California Community
Colleges in providing oversight of the pilot program.

(j)  In order to assist in providing access to extension courses
for students eligible for the Board of Governors fee waiver,
one-third of the revenue collected pursuant to subdivision (i) shall
be used by the district to provide financial assistance to these
students. In addition to the one-third of the revenues collected, a
participating district shall supplement financial assistance with
funds from campus foundations or any other nonstate funds.

(1) Each participating community college district shall develop
a plan for collecting and begin delete dispursing end delete begin insert disbursing end insert financial assistance
provided pursuant to this subdivision.

(2) Participating districts shall include a description of the
financial assistance plan in their annual reports to the Office of
the Chancellor of the California Community Colleges in accordance
with subdivision (n). Participating districts shall report, at a
minimum, all of the following:

(A) The number and percentage of participating students who
are receiving financial assistance.

(B) The criteria used for determining eligibility for, and
prioritizing awards of, financial assistance for students.

(C) Methods for communicating financial assistance information
to students.

(D) Total amount of financial aid disbursed and the sources of
the aid.

(E) Information on the proportion of students whose extension
program fees are subsidized with financial assistance, the
percentage of total fees that is paid by financial assistance for
individual students, with this information aggregated in ways that
assist in evaluating the consequence and equity of the financial
assistance program, and the sources of the financial assistance.

(k)  A community college district maintaining an extension
program under this section shall make every effort to encourage
broad participation in the program and support access for students
eligible for Board of Governors fee waivers, including, but not
limited to, providing students with information about financial aid
programs, the American Opportunity Tax Credit, military benefits,
scholarships, and other financial assistance that may be available
to students, as well as working with campus foundations to provide
financial assistance for students attending extension programs. In
addition, the district shall adopt enrollment priority and student
support policies ensuring that students who are eligible for state
financial aid are not disproportionately shifted from courses that
receive state apportionment funding to courses offered under the
pilot program.

(l) (1) Each eligible community college district participating
in the pilot program shall do both of the following:

(A) Collect and keep records that measure student participation,
student demographics, and student outcomes in a manner consistent
with records collected by community college districts in regular
credit programs supported through state apportionments, including
an analysis of program effects, if any, on district workload and
district financial status. A community college district shall submit
this information to the Office of the Chancellor of the California
Community Colleges by October 1 of each year.

(B) Submit a schedule of fees established pursuant to subdivision
(i) to the Chancellor of the California Community Colleges by
August 1 of each year.

(2) The chancellor shall submit all of the information provided
by community college districts pursuant to paragraph (1) to the
Legislative Analyst’s Office by November 1 of each year.

(3) (A) No later than January 1, 2017, the Legislative Analyst’s
Office shall, pursuant to Section 9795 of the Government Code,
provide to the Legislature a written report that evaluates the pilot
program established by this article.

(B) The report shall include all of the following:

(i) Summary statistics relating to course offerings, student
enrollment, including demographic data on the students enrolled
in courses, if available, financing, student use of financial aid,
funding, and course completion rates for the pilot program.

(ii) A determination of the extent to which the pilot program
complies with statutory requirements and the extent to which the
pilot program results in expanded access for students.

(iii) An assessment of the effect of the pilot program on the
availability of, and enrollment in, courses that receive state
apportionment funding, with particular attention to the demographic
makeup and financial aid status of students enrolled in those
courses.

(iv) Recommendations as to whether the pilot program should
be extended, expanded, or modified. In making recommendations,
the Legislative Analyst’s Office shall consider alternative
approaches that might achieve the goal of expanded access without
increasing state funding.

(m)  Courses offered by the extension program established and
maintained under this section may only be offered during summer
and winter intersessions.

(n) (1) No later than March 31, 2014, the Board of Governors
of the California Community Colleges shall adopt reporting
requirements for the pilot program that conform with the
requirements of Article 2 (commencing with Section 84030) of
Chapter 1 of Part 50, and the information reported shall be included
in the annual audit process.

(2) An eligible community college district that fails to comply
with the requirements established by the Board of Governors of
the California Community Colleges for the pilot program pursuant
to paragraph (1) or no longer meets the criteria set forth in
subdivision (d) shall be ineligible for participation in the pilot
program.

SEC. 46.  

Section 92493 of the Education Code is amended to
read:

92493.  

(a) The University of California may pledge, along
with its other revenues, its annual General Fund support
appropriation begin insert , end insert less the amount of that appropriation that is required
to fund general obligation bond payments and the State Public
Works Board rental payments, to secure the payment of any of the
university’s general revenue bonds or commercial paper associated
with the general revenue bond program. To the extent the university
pledges any part of its support appropriation as a source of revenue
securing any obligation, it shall provide that this commitment of
revenue is subject to annual appropriation by the Legislature. The
university may fund debt service for capital expenditures defined
in subdivision (b) from its General Fund support appropriation
pursuant to Sections 92495 and 92495.5. The state hereby
covenants with the holders of the university’s obligations secured
by the pledge of the university permitted by this section that, so
long as any of the obligations referred to in this subdivision remain
outstanding, the state will not impair or restrict the ability of the
university to pledge any support appropriation or support
appropriations that may be enacted for the university. The
university may include this covenant of the state in the agreements
or other documents underlying the university’s obligations to this
effect.

(b) For purposes of this section, “capital expenditures” shall
mean (1) the costs to design, construct, or equip academic facilities
to address seismic and life safety needs, enrollment growth, or
modernization of out-of-date facilities, and renewal or expansion
of infrastructure to serve academic programs, or (2) the debt service
amount associated with refunding, defeasing, or retiring State
Public Works Board lease revenue bonds.

(c) Nothing in this section shall require the Legislature to make
an appropriation from the General Fund in any specific amount to
support the University of California.

(d) The ability to utilize its support appropriation as stated in
this section shall not be used as a justification for future increases
in student tuition, additional employee layoffs, or reductions in
employee compensation at the University of California.

SEC. 47.  

Section 99301 of the Education Code is amended to
read:

99301.  

(a) Notwithstanding subdivision (a) of Section 78213,
the individual grade 11 assessment results, as referenced in Section
60641, or a standards-aligned successor assessment, in addition
to any other purposes, may be used by community college districts
to provide diagnostic advice to, or for the placement of, prospective
community college students participating in the EAP.

(b) (1) As authorized pursuant to subparagraph (B) of paragraph
(3) of subdivision (a) of Section 60641, the individual assessment
results, as referenced in Section 60641, or a standards-aligned
successor assessment, shall be provided to the office of the
Chancellor of the California Community Colleges.

(2) The office of the Chancellor of the California Community
Colleges shall coordinate with community college districts that
choose to voluntarily participate in the EAP as follows, and, to the
extent possible, shall accomplish all of the following activities
using existing resources:

(A) Encourage community college districts to choose to
voluntarily participate in the EAP and notify them of the
requirements of subdivision (c), including the requirements that
the standards utilized by CSU to assess readiness for college-level
English and mathematics courses, as expressed in the assessment
referenced in Section 60641, or a standards-aligned successor
assessment, shall also be used for the purposes of the EAP.

(B) Coordinate the progress of the program, provide technical
assistance to participating community college districts pursuant
to subdivision (c) as needed, identify additional reporting and
program criteria as needed, and provide a report to the Legislature
and Governor on or before February 15, 2015, on the
implementation and results of the EAP for community college
students.

(C) Provide access to the individual assessment results, as
referenced in Section 60641, or a standards-aligned successor
assessment, to participating community college districts.

(c) For those community college districts that choose to work
directly with high school pupils within their respective district
boundaries who took the assessment, as referenced in Section
60641, or a standards-aligned successor assessment, and choose
to offer assistance to these pupils in strengthening their college
readiness skills, all of the following provisions apply:

(1) The individual results of the assessment, as referenced in
Section 60641, or a standards-aligned successor assessment, shall
be released by the office of the Chancellor of the California
Community Colleges, as authorized pursuant to subparagraph (B)
of paragraph (3) of subdivision (a) of Section 60641, to
participating community college districts upon their request for
this information and may be used to provide diagnostic advice to
prospective community college students participating in the EAP.

(2) Pursuant to subparagraph (A) of paragraph (2) of subdivision
(b), the same standards utilized by CSU to assess readiness shall
also be used for purposes of this section.

(3) The assessment, as referenced in Section 60641, and utilized
by CSU for purposes of early assessment, or a standards-aligned
successor assessment, shall be used to assess the college readiness
of pupils in the EAP.

(4) Participating community college districts are encouraged to
consult with the Academic Senate for the California Community
Colleges to work toward sequencing their precollegiate level
courses and transfer-level courses in English and mathematics to
the common core academic content standards adopted pursuant to
Section 60605.8.

(5) Participating community college districts shall identify an
EAP coordinator and shall coordinate with CSU campuses and
schools offering instruction in kindergarten and any of grades 1
to 12, inclusive, in their respective district boundaries on
EAP-related activities that assist pupils in making decisions that
increase their college readiness skills and likelihood of pursuing
a postsecondary education.

(6) In order to provide high school pupils with an indicator of
their college readiness, a community college district participating
in the EAP shall use individual assessment results provided to that
college pursuant to paragraph (1) of, and subparagraph (C) of
paragraph (2) of, subdivision (b) to provide diagnostic advice to
prospective community college students participating in the EAP.

(7) The individual results of the assessment, as referenced in
Section 60641 for purposes of the EAP, or a standards-aligned
successor assessment, shall not be used by a community college
as a criterion for admission.

(8) Participating community college districts shall utilize the
existing infrastructure of academic opportunities, as developed by
CSU, to provide additional preparation in grade 12 for prospective
community college students participating in the EAP.

(d) Both of the following provisions apply to CSU:

(1) The individual results of the assessment, as referenced in
Section 60641, or a standards-aligned successor assessment, as
authorized pursuant to subparagraph (B) of paragraph (3) of
subdivision (a) of Section 60641, shall be released to, and begin insert , end insert in
addition to any other purposes, may be used by, CSU to provide
diagnostic advice to, or for begin delete , end delete the placement of begin insert , end insert prospective CSU
students participating in the EAP.

(2) The individual results of the assessment, as referenced in
Section 60641 for purposes of the EAP, or a standards-aligned
successor assessment, shall not be used by CSU as a criterion for
admission.

SEC. 48.  

Section 2187 of the Elections Code is amended to
read:

2187.  

(a) Each county elections official shall send to the
Secretary of State, in a format described by the Secretary of State,
a summary statement of the number of voters in the county. The
statement shall show the total number of voters in the county, the
number registered as affiliated with each qualified political party,
the number registered in nonqualified parties, and the number who
declined to state any party affiliation. The statement shall also
show the number of voters, by political affiliations, in each city,
supervisorial district, Assembly district, Senate district, and
congressional district located in whole or in part within the county.

(b) The Secretary of State, on the basis of the statements sent
by the county elections officials and within 30 days after receiving
those statements, shall compile a statewide list showing the number
of voters, by party affiliations, in the state and in each county, city,
supervisorial district, Assembly district, Senate district, and
congressional district in the state. A copy of this list shall be made
available, upon request, to any elector in this state.

(c) Each county that uses data-processing equipment to store
the information set forth in the affidavit of registration shall send
to the Secretary of State one copy of the electronic data file with
the information requested by the Secretary of State. Each county
that does not use data-processing storage shall send to the Secretary
of State one copy of the index setting forth that information.

(d) The summary statements and the electronic data file copy
or the index shall be sent at the following times:

(1) On the 135th day before each presidential primary and before
each direct primary, with respect to voters registered on the 154th
day before the primary election.

(2) Not less than 50 days prior to the primary election, with
respect to voters registered on the 60th day before the primary
election.

(3) Not less than seven days prior to the primary election, with
respect to voters registered before the 14th day prior to the primary
election.

(4) Not less than 102 days prior to each presidential general
election, with respect to voters registered before the 123rd day
before the presidential general election.

(5) Not less than 50 days prior to the general election, with
respect to voters registered on the 60th day before the general
election.

(6) Not less than seven days prior to the general election, with
respect to voters registered before the 14th day prior to the general
election.

(7) On or before March 1 of each odd-numbered year, with
respect to voters registered as of February 10.

(e) The Secretary of State may adopt regulations prescribing
the content and format of the electronic data file or index referred
to in subdivision (c) begin delete and containing end delete begin insert that contains end insert the registered
voter information from the affidavits of registration.

(f) The Secretary of State may adopt regulations prescribing
additional regular reporting times, except that the total number of
reporting times in any one calendar year shall not exceed 12.

(g) The Secretary of State shall make the information from the
electronic data files or the printed indexes available, under
conditions prescribed by the Secretary of State, to any candidate
for federal, state, or local office, to any committee for or against
any proposed ballot measure, to any committee for or against any
initiative or referendum measure for which legal publication is
made, and to any person for election, scholarly or political research,
or governmental purposes as determined by the Secretary of State.

(h) For purposes of this section, “electronic data file” means
either a magnetic tape or a data file in an alternative electronic
format, at the discretion of the county elections official.

SEC. 49.  

Section 3007.8 of the Elections Code is amended to
read:

3007.8.  

(a) A local elections official may offer a voter the
ability to apply for a vote by mail voter’s ballot by telephone.

(b) To apply by telephone, the applicant shall provide to the
elections official personal identifying information that matches
the information contained on the applicant’s affidavit of
registration, including first and last name, home address, and date
of birth. The applicant’s signature shall not be required.

(c) A person shall not apply for a vote by mail voter’s ballot
pursuant to this section using the name of, or on behalf of, another
person.

(d) Prior to being asked for personal identifying information,
an applicant applying for a vote by mail voter’s ballot pursuant to
this section shall be advised as follows:

“Only the registered voter himself or herself may apply for a
vote by mail ballot. An application for a vote by mail ballot that
is made by any person other than the registered voter is a criminal
offense.”

(e) Except as otherwise provided in this section, all provisions
of this code governing written applications for vote by mail begin delete voter’s end delete
begin insert voters end insert begin insert ’ end insert ballots shall apply to applications made by telephone.

SEC. 50.  

Section 5001 of the Elections Code is amended to
read:

5001.  

Whenever a group of electors desires to qualify a new
political party meeting the requirements of Section 5100 or 5151,
that group shall form a political body by:

(a) Holding a caucus or convention at which temporary officers
shall be elected and a party name designated. The designated name
shall not be so similar to the name of an existing party so as to
mislead the voters, and shall not conflict with that of any existing
party or political body that has previously filed notice pursuant to
subdivision (b).

(b) Filing formal notice with the Secretary of State that the
political body has organized, elected temporary officers, and
declared an intent to qualify a political party pursuant to either
Section 5100 or begin delete Section end delete 5151, but not both. The notice shall include
the names and addresses of the temporary officers of the political
body.

SEC. 51.  

Section 19284 of the Elections Code is amended to
read:

19284.  

(a) A person, corporation, or public agency owning or
having an interest in the sale or acquisition of a ballot marking
system or a part of a ballot marking system may apply to the
Secretary of State for certification or conditional approval that
includes testing and examination of the applicant’s system and a
report on the findings, which shall include the accuracy and
efficiency of the ballot marking system. As part of its application,
the applicant of a ballot marking system or a part of a ballot
marking system shall notify the Secretary of State in writing of
any known defect, fault, or failure of the version of the hardware,
software, or firmware of the ballot marking system or a part of the
ballot marking system submitted. The Secretary of State shall not
begin his or her certification process until he or she receives a
completed application from the applicant of the ballot marking
system or a part of the ballot marking system. The applicant shall
also notify the Secretary of State in writing of any defect, fault, or
failure of the version of the hardware, software, or firmware of
the ballot marking system or a part of the ballot marking system
submitted that is discovered after the application is submitted and
before the Secretary of State submits the report required by Section
19288. The Secretary of State shall complete his or her examination
without undue delay.

(b) After receiving an applicant’s written notification of a defect,
fault, or failure, the Secretary of State shall notify the United States
Election Assistance Commission or its successor begin delete entity end delete begin insert agency end insert of
the problem as soon as practicable so as to present a reasonably
complete description of the problem. The Secretary of State shall
subsequently submit a report regarding the problem to the United
States Election Assistance Commission or its successor begin delete entity end delete
begin insert agency end insert . The report shall include any report regarding the problem
submitted to the Secretary of State by the applicant.

(c)  As used in this chapter:

(1) “Defect” means any flaw in the hardware or documentation
of a ballot marking system that could result in a state of unfitness
for use or nonconformance to the manufacturer’s specifications
or applicable law.

(2) “Failure” means a discrepancy between the external results
of the operation of any software or firmware in a ballot marking
system and the manufacturer’s product requirements for that
software or firmware or applicable law.

(3) “Fault” means a step, process, or data definition in any
software or firmware in a ballot marking system that is incorrect
under the manufacturer’s program specification or applicable law.

SEC. 52.  

Section 19290 of the Elections Code is amended to
read:

19290.  

(a) If a ballot marking system has been certified or
conditionally approved by the Secretary of State, the vendor or,
in cases where the system is publicly owned, the jurisdiction shall
notify the Secretary of State and all local elections officials who
use the system in writing of any defect, fault, or failure of the
hardware, software, or firmware of the system or a part of the
system within 30 calendar days after the vendor or jurisdiction
learns of the defect, fault, or failure.

(b) After receiving written notification of a defect, fault, or
failure pursuant to subdivision (a), the Secretary of State shall
notify the United States Election Assistance Commission or its
successor begin delete entity end delete begin insert agency end insert of the problem as soon as practicable so
as to present a reasonably complete description of the problem.
The Secretary of State shall subsequently submit a report regarding
the problem to the United States Election Assistance Commission
or its successor begin delete entity end delete begin insert agency end insert . The report shall include any report
regarding the problem submitted to the Secretary of State.

SEC. 53.  

Section 914 of the Family Code is amended to read:

914.  

(a) Notwithstanding Section 913, a married person is
personally liable for the following debts incurred by the person’s
spouse during marriage:

(1) A debt incurred for necessaries of life of the person’s spouse
while the spouses are living together.

(2) Except as provided in Section 4302, a debt incurred for
common necessaries of life of the person’s spouse while the
spouses are living separately.

(b) The separate property of a married person may be applied
to the satisfaction of a debt for which the person is personally liable
pursuant to this section. If separate property is so applied at a time
when nonexempt property in the community estate or separate
property of the person’s spouse is available but is not applied to
the satisfaction of the debt, the married person is entitled to
reimbursement to the extent such property was available.

(c) (1) Except as provided in paragraph (2), the statute of
limitations set forth in Section 366.2 of the Code of Civil Procedure
shall apply if the spouse for whom the married person is personally
liable begin delete dies . end delete begin insert dies. end insert

(2) If the surviving spouse had actual knowledge of the debt
prior to expiration of the period set forth in Section 366.2 begin insert of the
Code of Civil Procedure end insert and the personal representative of the
deceased spouse’s estate failed to provide the creditor asserting
the claim under this section with a timely written notice of the
probate administration of the estate in the manner provided for
pursuant to Section 9050 of the Probate Code, the statute of
limitations set forth in Section 337 or 339 begin insert of the Code of Civil
Procedure end insert , as applicable, shall apply.

SEC. 54.  

Section 6383 of the Family Code, as amended by
Section 2 of Chapter 263 of the Statutes of 2013, is amended to
read:

6383.  

(a) A temporary restraining order or emergency
protective order issued under this part shall, on request of the
petitioner, be served on the respondent, whether or not the
respondent has been taken into custody, by a law enforcement
officer who is present at the scene of reported domestic violence
involving the parties to the proceeding.

(b) The petitioner shall provide the officer with an endorsed
copy of the order and a proof of service that the officer shall
complete and transmit to the issuing court.

(c) It is a rebuttable presumption that the proof of service was
signed on the date of service.

(d) Upon receiving information at the scene of a domestic
violence incident that a protective order has been issued under this
part, or that a person who has been taken into custody is the
respondent to that order, if the protected person cannot produce
an endorsed copy of the order, a law enforcement officer shall
immediately inquire of the begin delete Department of Justice end delete Domestic
Violence Restraining Order System to verify the existence of the
order.

(e) If the law enforcement officer determines that a protective
order has been issued, but not served, the officer shall immediately
notify the respondent of the terms of the order and where a written
copy of the order can be obtained and the officer shall, at that time,
also enforce the order. The law enforcement officer’s verbal notice
of the terms of the order shall constitute service of the order and
is sufficient notice for the purposes of this section and for the
purposes of Sections 273.6 and 29825 of the Penal Code.

(f) If a report is required under Section 13730 of the Penal Code,
or if no report is required, then in the daily incident log, the officer
shall provide the name and assignment of the officer notifying the
respondent pursuant to subdivision (e) and the case number of the
order.

(g) Upon service of the order outside of the court, a law
enforcement officer shall advise the respondent to go to the local
court to obtain a copy of the order containing the full terms and
conditions of the order.

(h) (1) There shall be no civil liability on the part of, and no
cause of action for begin delete , end delete false arrest or false imprisonment against begin insert , end insert a
peace officer who makes an arrest pursuant to a protective or
restraining order that is regular upon its face, if the peace officer,
in making the arrest, acts in good faith and has reasonable cause
to believe that the person against whom the order is issued has
notice of the order and has committed an act in violation of the
order.

(2) If there is more than one order issued and one of the orders
is an emergency protective order that has precedence in
enforcement pursuant to paragraph (1) of subdivision (c) of Section
136.2 of the Penal Code, the peace officer shall enforce the
emergency protective order. If there is more than one order issued,
none of the orders issued is an emergency protective order that
has precedence in enforcement, and one of the orders issued is a
no-contact order, as described in Section 6320, the peace officer
shall enforce the no-contact order. If there is more than one civil
order regarding the same parties and neither an emergency
protective order that has precedence in enforcement nor a
no-contact order has been issued, the peace officer shall enforce
the order that was issued last. If there are both civil and criminal
orders regarding the same parties and neither an emergency
protective order that has precedence in enforcement nor a
no-contact order has been issued, the peace officer shall enforce
the criminal order issued last, subject to the provisions of
subdivisions (h) and (i) of Section 136.2 of the Penal Code.
Nothing in this section shall be deemed to exonerate a peace officer
from liability for the unreasonable use of force in the enforcement
of the order. The immunities afforded by this section shall not
affect the availability of any other immunity that may apply,
including, but not limited to, Sections 820.2 and 820.4 of the
Government Code.

SEC. 55.  

Section 8730 of the Family Code is amended to read:

8730.  

(a) Subject to the requirements of subdivision (b), the
department, county adoption agency, or licensed adoption agency
begin delete has the discretion to end delete begin insert may end insert provide an abbreviated home study
assessment for any of the following:

(1) A licensed or certified foster parent with whom the child
has lived for a minimum of six months.

(2) An approved relative caregiver or nonrelated extended family
member with whom the child has had an ongoing and significant
relationship.

(3) A court-appointed relative guardian of the child who has
been investigated and approved pursuant to the guardianship
investigation process and has had physical custody of the child for
at least one year.

(4) A prospective adoptive parent who has completed an
agency-supervised adoption within the last two years.

(b) Unless otherwise ordered by a court with jurisdiction over
the child, home study assessments completed pursuant to
subdivision (a) shall include, at minimum, all of the following:

(1) A criminal records check, as required by all applicable state
and federal statutes and regulations.

(2) A determination that the applicant has sufficient financial
stability to support the child and ensure that begin delete any end delete begin insert an end insert adoption
assistance program payment or other government assistance to
which the child is entitled is used exclusively to meet the child’s
needs. In making this determination, the experience of the applicant
only while the child was in his or her care shall be considered. For
purposes of this section, the applicant shall be required to provide
verification of employment records or income or both.

(3) A determination that the applicant has not abused or
neglected the child while the child has been in his or her care and
has fostered the healthy growth and development of the child. This
determination shall include a review of the disciplinary practices
of the applicant to ensure that the practices are age appropriate
and do not physically or emotionally endanger the child.

(4) A determination that the applicant is not likely to abuse or
neglect the child in the future begin delete , end delete begin insert and end insert that the applicant can protect
the child, ensure necessary care and supervision, and foster the
child’s healthy growth and development.

(5) A determination that the applicant can address begin insert issues end insert that
may affect the child’s well-being, including, but not limited to,
begin insert the child’s end insert physical health, mental health, and educational needs.

(6) An interview with the applicant, an interview with each
individual residing in the home, and an interview with the child
to be adopted.

(7) A review by the department, county adoption agency, or
licensed adoption agency of all previous guardianship investigation
reports, home study assessments, and preplacement evaluations
of each applicant. Notwithstanding any other law regarding the
confidential nature of these reports, upon the written request of
the department, county adoption agency, or licensed adoption
agency that is accompanied by a signed release from the applicant,
the department, county adoption agency, or licensed adoption
agency may receive a copy of any of these reports from a court,
investigating agency, or other person or entity in possession of the
report. The department, county adoption agency, or licensed
adoption agency shall document begin delete any end delete attempts to obtain the report
and, if applicable, the reason the report is unavailable.

(c) The department may promulgate regulations as necessary
or appropriate to implement this section.

(d) This section does not apply to independent adoptions filed
pursuant to Chapter 3 (commencing with Section 8800).

SEC. 56.  

Section 8664.2 of the Fish and Game Code is
repealed.

begin delete

8664.2.  

(a) Notwithstanding Sections 8693 and 8724, gill nets
and trammel nets shall not be used offshore of San Nicolas Island
in Ventura County in waters 20 fathoms or less in depth at mean
lower low water.

(b) No person, except state, local, or federal employees in the
performance of their official duties, shall discharge any firearm
within the sea otter translocation zone surrounding San Nicolas
Island.

(c) For purposes of this section, “sea otter translocation zone”
includes San Nicolas Island, the nearby islet of Begg Rock, and
surrounding waters within the following coordinates:

 

(North Latitude/West Longitude)
33° 27.8´ / 119° 34.3´	33° 20.5´ / 119° 15.5´
33° 13.5´ / 119° 11.8´	33° 06.5´ / 119° 15.3´
33° 02.8´ / 119° 26.8´	33° 08.8´ / 119° 46.3´
33° 17.2´ / 119° 56.9´	33° 30.9´ / 119° 54.2´

 

(d) The taking of a sea otter that is incidental to, and not for the
purpose of, the carrying out of an otherwise lawful activity within
the sea otter management zone described in subdivision (e), is not
a violation of the California Endangered Species Act, Chapter 1.5
(commencing with Section 2050) of Division 3, or Section 4700.

(e) For purposes of this section, “sea otter management zone”
includes all waters, islands, islets, and land areas seaward of mean
high tide subject to the jurisdiction of the United States, including
state tidelands, located south of Point Conception (34°26.9´ N.
Latitude), excepting therefrom any area within the sea otter
translocation zone described in subdivision (c).

(f) This section shall become operative only upon the relocation
and release of sea otters to San Nicolas Island. This section shall
become inoperative if the sea otter translocation experiment is
declared a failure pursuant to the provisions of Public Law 99-625.

end delete

SEC. 57.  

Section 12002 of the Fish and Game Code is amended
to read:

12002.  

(a) Unless otherwise provided, the punishment for a
violation of this code that is a misdemeanor is a fine of not more
than one thousand dollars ($1,000), imprisonment in the county
jail for not more than six months, or by both that fine and
imprisonment.

(b) The punishment for a violation of any of the following
provisions is a fine of not more than two thousand dollars ($2,000),
imprisonment in the county jail for not more than one year, or both
the fine and imprisonment:

(1) Section 1059.

(2) Subdivision begin delete (d) end delete begin insert (c) end insert of Section 4004.

(3) Section 4600.

(4) Paragraph (1) or (2) of subdivision (a) of Section 5650.

(5) A first violation of Section 8670.

(6) Section 10500.

(7) Unless a greater punishment is otherwise provided, a
violation subject to subdivision (a) of Section 12003.1.

(c) Except as specified in Sections 12001 and 12010, the
punishment for violation of Section 3503, 3503.5, 3513, or 3800
is a fine of not more than five thousand dollars ($5,000),
imprisonment in the county jail for not more than six months, or
by both that fine and imprisonment.

(d) (1) A license, tag, stamp, reservation, permit, or other
entitlement or privilege issued pursuant to this code to a defendant
who fails to appear at a court hearing for a violation of this code,
or who fails to pay a fine imposed pursuant to this code, shall be
immediately suspended or revoked. The license, tag, stamp,
reservation, permit, or other entitlement or privilege shall not be
reinstated or renewed, and no other license, tag, stamp, reservation,
permit, or other entitlement or privilege shall be issued to that
person pursuant to this code, until the court proceeding is
completed or the fine is paid.

(2) This subdivision does not apply to any violation of Section
1052, 1059, 1170, 5650, 5653.9, 6454, 6650, or 6653.5.

SEC. 58.  

Section 24001 of the Food and Agricultural Code is
amended to read:

24001.  

For purposes of this chapter:

(a) “Event” means a public equine event or public horse sale
that is held in the state, including a cutting horse competition, an
endurance riding competition, a competitive trail competition, or
any other competition as determined by the department by
regulation.

(b) An equine event that is subject to begin delete the provisions of end delete this
chapter shall meet all of the following criteria:

(1) Money, goods, or services are exchanged for the right to
compete.

(2) Individuals compete for a single set of placings, points, or
awards at the equine event.

(3) For one-day events, the entry fee to enter a single class
exceeds four dollars and ninety-nine cents ($4.99), and either no
other fees are charged or other fees charged exceed nineteen dollars
and ninety-nine cents ($19.99). Fees charged may include ground
fees, stall fees, or any other fees composed of money, goods, or
services assessed to permit competitors to enter into the event.

(c) Sales that are subject to begin delete the provisions of end delete this chapter are
public sales that permit a horse to be consigned for public sale.

(d) The following events are excluded from this chapter:

(1) Competitions subject to the jurisdiction of the California
Horse Racing Board.

(2) Sales consisting solely of racing stock.

(3) Parade horse competitions.

(4) A timed rodeo-related performance competition when held
apart from a horse show, including, but not limited to, rodeo, roping
club, cattle team penning, barrel racing, and gymkhana.

(e) “Event manager” means the person in charge of an event,
including the entity or individual financially responsible for the
event that is responsible for registering the event with the
department, and who is responsible for the assessment, collection,
and remittance of fees. “Event manager” includes horse show
secretaries and managers, competitive event managers, and horse
sale managers and sale owners.

(f) “Horse” means all horses, mules, and asses.

(g) “Licensed veterinarian” means a person licensed as a
veterinarian by the State of California.

(h) “Prohibited substance” means a stimulant, depressant,
tranquilizer, anesthetic, including any local anesthetic, sedative
analgesic, corticosteroid, anabolic steroid, or agent that would sore
a horse, that could affect the performance, soundness, or disposition
of a horse, or any drug, regardless of how harmless or innocuous
it might otherwise be, that could interfere with the detection of
any prohibited substance, including any metabolite or derivative
of any prohibited substance.

(i) “NSAID” means a nonsteroidal anti-inflammatory drug.

(j) “Therapeutic administration” means the administration of a
drug or medicine that is necessary for the treatment of an illness
or injury diagnosed by a licensed veterinarian. The administration
of a prescription drug or medicine shall only be as given or
prescribed by the licensed veterinarian. The administration of a
nonprescription drug or medicine shall be in accordance with the
directions on the manufacturer’s label.

(k) “Exempt medication” means an oral or topical medication
containing prohibited substances determined by the department to
be exempt from this chapter when administered therapeutically.

(l) “Public equine event” means a horse show or competition
that permits a person to enter a horse for show or competition in
exchange for money, goods, or services. Any club or group that
permits people to join or enter into competition in exchange for
money, goods, or services, is “public” for purposes of this chapter.

(m) “Public horse sale” is a sale that consigns a horse in
exchange for money, goods, or services, excluding sales consisting
solely of racing stock.

(n) “Stimulant or depressant” means a medication that stimulates
or depresses the circulatory, respiratory, or central or peripheral
nervous system.

(o) To “sore” means to apply an irritating or blistering agent
internally or externally for the purpose of affecting the
performance, soundness, or disposition of a horse.

(p) “Trainer” means a person who has the responsibility for the
care, training, custody, or performance of a horse, including, but
not limited to, a person who signs any entry blank of a public
equine event or public horse sale, whether that person is an owner,
rider, agent, coach, adult, or minor.

SEC. 59.  

Section 24011 of the Food and Agricultural Code is
amended to read:

24011.  

(a) A horse that has received a prohibited substance
shall not be eligible for show, competition, or sale, unless the
following requirements have been met and the facts requested are
submitted to the department in writing:

(1) Medication shall be therapeutic and necessary for treatment
of an illness or injury.

(2) A horse shall be withdrawn from a show or competition for
a period of not less than 24 hours after a prohibited substance is
administered, unless the department determines a different
withdrawal period for a specific prohibited substance or class of
substances. A horse shall be withdrawn from a public sale for a
period of not less than 72 hours after a prohibited substance or
NSAID is administered. The withdrawal period for anabolic
steroids is 90 days after administration and the withdrawal period
for fluphenazine or reserpine is 45 days after administration.

(3) The medication shall be administered by a licensed
veterinarian, the trainer, or begin insert the end insert owner.

(4) Medication shall be identified as to the amount, strength,
and mode of administration.

(5) The statement shall include the date and time of
administration of the medication.

(6) The horse shall be identified by its name, age, sex, color,
and entry number.

(7) The statement shall contain the diagnosis of the attending
veterinarian and reason for administering the medication.

(8) The statement shall be signed by the person administering
the medication.

(9) The statement shall be filed with the event manager of the
public equine event or general manager of the public horse sale
within one hour after administration or one hour after the event
manager of the event returns to duty, if administration is at a time
other than during show or sale hours.

(10) The statement shall be signed by the event manager or his
or her designated representative and time of receipt recorded on
the statement by the event manager or his or her designated
representative.

(b) If the chemical analysis of the sample taken from a horse
treated indicates the presence of a prohibited substance and all the
requirements of this section have been fully complied with, the
information contained in the medication report and any other
relevant evidence shall be considered at any hearing provided
under this chapter in determining whether any provision of this
chapter has been violated.

SEC. 60.  

Section 24012 of the Food and Agricultural Code is
amended to read:

24012.  

(a) (1) To provide funds for enforcement of this
chapter, the event manager of every event shall charge and collect
the applicable fee for each horse entered or exhibited in the event,
and each horse consigned for public sale. The secretary may, by
regulation, set the applicable fee, in consultation with the advisory
committee appointed pursuant to Section 24013.5, at an amount
necessary to carry out this chapter. An event manager shall be
notified of the applicable fee at the time of registration of an event.
The event manager of the registered event shall remit the fee
established pursuant to this section, in addition to the completed
assessment report for the registered event, as prescribed by the
secretary, to the department within 15 days after completion of
the event. The event manager shall maintain event records for a
period of two years after the completion of the event. Upon request
by the department, the event records shall be made available to
the department for inspection and photocopying to enable
verification of appropriate fee collection and remittance.

(2) Notwithstanding Section 24001, a show event held over
multiple consecutive days, with a different judge on each day, that
is registered and managed by the same event manager on the same
premises, shall be considered one event for the purpose of the
assessment of the fee.

(b) An event manager who does not pay to the department the
full amount that is due pursuant to this section shall pay a civil
penalty of 10 percent of the amount due plus interest at the rate of
11⁄2 percent per month of the unpaid balance computed from the
date of the event. The event manager is personally liable for fees
and penalties owed the department pursuant to this section.

(c) Fees and penalties collected pursuant to this section shall be
deposited in the Department of Food and Agriculture Fund. begin delete All
funds end delete begin insert Funds end insert received by the department from fees and penalties
pursuant to this section shall be used exclusively to carry out the
intent and begin delete purpose end delete begin insert purposes end insert of this chapter, including, but not
limited to, pharmacological studies, drug testing, and drug research,
inspection for drugs, prosecution of alleged offenders,
administrative costs, attorney’s and expert witness fees, and any
other costs necessary to carry out this chapter.

SEC. 61.  

Section 43003 of the Food and Agricultural Code is
amended to read:

43003.  

(a) In lieu of civil prosecution, the secretary or the
commissioner may levy a civil penalty against any person violating
this division or any regulation adopted pursuant to its provisions.
Except as provided in subdivisions (b) and (c), the civil penalty
for each violation shall be, for a first violation, a fine of not more
than five hundred dollars ($500). For a second or subsequent
violation, the fine shall be not less than one hundred dollars ($100),
nor more than one thousand dollars ($1,000).

(b) The secretary or the commissioner may, for a first violation,
levy a civil penalty not to exceed three thousand dollars ($3,000)
for each violation of Section 42945, 42948, 42949, 42951,
subdivision (b) of Section 44971, Section 44972, subdivision (c)
of Section 44974, or Section 44986.

(c) The secretary or the commissioner may, for a first violation,
levy a civil penalty not to exceed five hundred dollars ($500) for
each violation of Section 44973, 44982, 44983, 44984, 45031,
45034, or 45035. For a second or subsequent violation, or for a
violation involving avocados worth five hundred dollars ($500)
or more, the fine shall be not less than two hundred fifty dollars
($250) nor more than five thousand dollars ($5,000).

(d) Before a civil penalty is levied, the person charged with the
violation shall receive notice of the nature of the violation and
shall be given an opportunity to be heard. This shall include the
right to review the evidence and a right to present evidence on his
or her own behalf.

(e) The person fined may appeal to the secretary within 10 days
of the date of receiving notification of the fine. The following
procedures apply to the appeal:

(1) The appeal need not be formal, but it shall be in writing and
signed by the appellant or his or her authorized agent, and shall
state the grounds for the appeal.

(2) Any party may, at the time of filing the appeal or within 10
days thereafter, present written evidence and a written argument
to the secretary.

(3) The secretary may grant oral arguments upon application
made at the time written arguments are filed.

(4) If an application to present an oral argument is granted,
written notice of the time and place for the oral argument shall be
given at least 10 days before the date set begin delete therefor end delete begin insert for the oral
argument end insert . The times may be altered by mutual agreement.

(5) The secretary shall decide the appeal on any oral or written
argument, begin delete briefs, end delete begin insert brief, end insert and evidence that he or she has received.

(6) The secretary shall render a written decision within 45 days
of the date of appeal or within 15 days of the date of oral
arguments.

(7) On an appeal pursuant to this section, the secretary may
sustain, modify by reducing the amount of the fine, or reverse the
decision of the commissioner. A copy of the secretary’s decision
shall be delivered or mailed to the appellant and the commissioner.

(8) Review of the decision of the secretary may be sought by
the appellant pursuant to Section 1094.5 of the Code of Civil
Procedure.

(f) After the exhaustion of the appeal and review procedures
provided in this section, the commissioner, or his or her
representative, may file a certified copy of a final decision of the
commissioner that directs the payment of a civil penalty and, if
applicable, a copy of any decision of the secretary, or his or her
representative, rendered on an appeal from the commissioner’s
decision, and a copy of any order that denies a petition for a writ
of administrative mandamus, with the clerk of the superior court
of any county. Judgment shall be entered immediately by the clerk
in conformity with the decision or order. Pursuant to Section 6103
of the Government Code, the clerk of the superior court shall not
charge a fee for the performance of any official service required
in connection with the entry of judgment pursuant to this section.

SEC. 62.  

Section 47060 of the Food and Agricultural Code is
amended to read:

47060.  

For purposes of this article, the following definitions
apply:

(a) “Community-supported agriculture program” or “CSA
program” means a program under which a registered California
direct marketing producer, or a group of registered California direct
marketing producers, grow food for a group of California consumer
shareholders or subscribers who pledge or contract to buy a portion
of the future crop, animal production, or both, of a registered
California direct marketing producer or a group of registered
California direct marketing producers.

(b) “Single-farm community-supported agriculture program”
means a program in which all delivered farm products originate
from and are produced at the farm of one registered California
direct marketing producer, and no more than a de begin delete minimus end delete begin insert minimis end insert
amount of delivered farm products originate at the farms of other
registered California direct marketing producers.

(c) “Multi-farm community-supported agriculture program”
means a program in which all delivered farm products originate
from and are produced at one or more farms of a group of registered
California direct marketing producers who declare their association
as a group at the time of their annual certification or by amending
the annual certification during the year.

(d) “Farm” means a farm operated by a registered California
direct marketing producer or a group of registered California direct
marketing producers.

SEC. 63.  

Section 47061 of the Food and Agricultural Code is
amended to read:

47061.  

(a) A producer that markets whole produce, shell eggs,
or processed foods through a single-farm community-supported
agriculture program or multi-farm community-supported
agriculture program shall comply with all of the following:

(1) Register annually with the department as a California direct
marketing producer, which shall include both of the following:

(A) A statement specifying whether the producer is part of a
single-farm community supported agriculture program or
multi-farm community-supported agriculture program.

(B) (i) A declaration by the producer that he or she is
knowledgeable and intends to produce in accordance with good
agricultural practices, as outlined in the small farm food safety
guidelines published by the department.

(ii) A declaration made pursuant to this subparagraph shall not
be used to infer that the producer is not required to comply with
any other state or federal laws relative to food safety and good
agricultural practices.

(2) Label the consumer box or container used to deliver farm
products to the consumer with the name and address of the farm
delivering the box or container.

(3) Maintain the consumer boxes or containers in a condition
that prevents contamination.

(4) Inform consumers, either by including a printed list in the
consumer box or container or by delivering a list electronically to
the consumer, of the farm of origin of each item in the consumer
box or container.

(5) Maintain records that document the contents and origin of
all of the items included in each consumer box or container, in
accordance with department regulations.

(6) Comply with all labeling and identification requirements
for shell eggs and processed foods imposed pursuant to the
provisions of the Health and Safety Code, including, but not limited
to, the farm’s name, physical address, and telephone number.

(b) A registered California direct marketing producer that is in
compliance with this section and in good standing shall be deemed
an approved source, as defined in Section 113735 of the Health
and Safety Code.

(c) A potentially hazardous food, as defined in Section 113871
of the Health and Safety Code, shall not be included in a consumer
box distributed pursuant to this article unless that food has been
produced, processed, and handled pursuant to all applicable federal,
state, and local food safety requirements.

(d) Poultry and rabbit meat produced pursuant to Part 2
(commencing with Section 25401) of Division 12, and other meats
produced pursuant to Chapter 4.1 (commencing with Section
18940) of Part 3 of Division 9, that are marketed under this chapter
shall comply with handling requirements established in the small
farm food safety guidelines published by the department, as
described in paragraph (2) of subdivision (b) of Section 47062.

(e) An enforcement officer, as defined in Section 113774 of the
California Retail Food Code (Part 7 (commencing with Section
113700) of Division 104 begin insert of end insert the Health and Safety Code) may enter
into and inspect a community-supported agriculture program in
response to a public food safety complaint. The enforcement officer
may recover reasonable costs associated with that inspection from
the registered begin insert California end insert direct marketing producer operating the
community-supported agriculture program.

(f) Nothing in this section shall be construed to remove the
responsibility of a community-supported agriculture program from
obtaining all required permits and licenses, including, but not
limited to, a produce handler license or a cottage food permit.

SEC. 64.  

Section 81006 of the Food and Agricultural Code is
amended to read:

81006.  

(a) (1) Except when grown by an established
agricultural research institution or a registered seed breeder,
industrial hemp shall be grown only as a densely planted fiber or
oilseed crop, or both, in acreages of not less than five acres at the
same time, and no portion of an acreage of industrial hemp shall
include plots of less than one contiguous acre.

(2) Registered seed breeders, for purposes of seed production,
shall only grow industrial hemp as a densely planted crop in
acreages of not less than two acres at the same time, and no portion
of the acreage of industrial hemp shall include plots of less than
one contiguous acre.

(3) Registered seed breeders, for purposes of developing a new
California seed cultivar, shall grow industrial hemp as densely as
possible in dedicated acreage of not less than one acre and in
accordance with the seed development plan. The entire area of the
dedicated acreage is not required to be used for the cultivation of
the particular seed cultivar.

(b) Ornamental and clandestine cultivation of industrial hemp
is prohibited. All plots shall have adequate signage indicating they
are industrial hemp.

(c) Pruning and tending of individual industrial hemp plants is
prohibited, except when grown by an established agricultural
research institution or when the action is necessary to perform the
begin delete THC end delete begin insert tetrahydrocannabinol (THC) end insert testing described in this section.

(d) Culling of industrial hemp is prohibited, except when grown
by an established agricultural research institution, when the action
is necessary to perform the THC testing described in this section,
or for purposes of seed production and development by a registered
seed breeder.

(e) Industrial hemp shall include products imported under the
Harmonized Tariff Schedule of the United States (2013) of the
United States International Trade Commission, including, but not
limited to, hemp seed, per subheading 1207.99.03, hemp oil, per
subheading 1515.90.80, oilcake, per subheading 2306.90.01, true
hemp, per heading 5302, true hemp yarn, per subheading
5308.20.00, and woven fabrics of true hemp fibers, per subheading
5311.00.40.

(f) Except when industrial hemp is grown by an established
agricultural research institution, a registrant that grows industrial
hemp under this section shall, before the harvest of each crop and
as provided below, obtain a laboratory test report indicating the
begin delete tetrahydrocannabinol (THC) end delete begin insert THC end insert levels of a random sampling of
the dried flowering tops of the industrial hemp grown.

(1) Sampling shall occur as soon as practicable when the THC
content of the leaves surrounding the seeds is at its peak and shall
commence as the seeds begin to mature, when the first seeds of
approximately 50 percent of the plants are resistant to compression.

(2) The entire fruit-bearing part of the plant including the seeds
shall be used as a sample. The sample cut shall be made directly
underneath the inflorescence found in the top one-third of the plant.

(3) The sample collected for THC testing shall be accompanied
by the following documentation:

(A) The registrant’s proof of registration.

(B) Seed certification documentation for the seed begin delete cultivar’s end delete
begin insert cultivar end insert used.

(C) The THC testing report for each certified seed cultivar used.

(4) The laboratory test report shall be issued by a laboratory
registered with the federal Drug Enforcement Administration, shall
state the percentage content of THC, shall indicate the date and
location of samples taken, and shall state the Global Positioning
System coordinates and total acreage of the crop. If the laboratory
test report indicates a percentage content of THC that is equal to
or less than three-tenths of 1 percent, the words “PASSED AS
CALIFORNIA INDUSTRIAL HEMP” shall appear at or near the
top of the laboratory test report. If the laboratory test report
indicates a percentage content of THC that is greater than
three-tenths of 1 percent, the words “FAILED AS CALIFORNIA
INDUSTRIAL HEMP” shall appear at or near the top of the
laboratory test report.

(5) If the laboratory test report indicates a percentage content
of THC that is equal to or less than three-tenths of 1 percent, the
laboratory shall provide the person who requested the testing not
less than 10 original copies signed by an employee authorized by
the laboratory and shall retain one or more original copies of the
laboratory test report for a minimum of two years from its date of
sampling.

(6) If the laboratory test report indicates a percentage content
of THC that is greater than three-tenths of 1 percent and does not
exceed 1 percent, the registrant that grows industrial hemp shall
submit additional samples for testing of the industrial hemp grown.

(7) A registrant that grows industrial hemp shall destroy the
industrial hemp grown upon receipt of a first laboratory test report
indicating a percentage content of THC that exceeds 1 percent or
a second laboratory test report pursuant to paragraph (6) indicating
a percentage content of THC that exceeds three-tenths of 1 percent
but is less than 1 percent. If the percentage content of THC exceeds
1 percent, the destruction shall take place within 48 hours after
receipt of the laboratory test report. If the percentage content of
THC in the second laboratory test report exceeds three-tenths of
1 percent but is less than 1 percent, the destruction shall take place
as soon as practicable, but no later than 45 days after receipt of
the second test report.

(8) A registrant that intends to grow industrial hemp and who
complies with this section shall not be prosecuted for the cultivation
or possession of marijuana as a result of a laboratory test report
that indicates a percentage content of THC that is greater than
three-tenths of 1 percent but does not exceed 1 percent.

(9) Established agricultural research institutions shall be
permitted to cultivate or possess industrial hemp with a laboratory
test report that indicates a percentage content of THC that is greater
than three-tenths of 1 percent if that cultivation or possession
contributes to the development of types of industrial hemp that
will comply with the three-tenths of 1 percent THC limit
established in this division.

(10) Except for an established agricultural research institution,
a registrant that grows industrial hemp shall retain an original
signed copy of the laboratory test report for two years from its date
of sampling, make an original signed copy of the laboratory test
report available to the department, the commissioner, or law
enforcement officials or their designees upon request, and shall
provide an original copy of the laboratory test report to each person
purchasing, transporting, or otherwise obtaining from the registrant
that grows industrial hemp the fiber, oil, cake, or seed, or any
component of the seed, of the plant.

(g) If, in the Attorney General’s opinion issued pursuant to
Section 8 of the act that added this division, it is determined that
the provisions of this section are not sufficient to comply with
federal law, the department, in consultation with the board, shall
establish procedures for this section that meet the requirements of
federal law.

SEC. 65.  

Section 905.2 of the Government Code is amended
to read:

905.2.  

(a) This section shall apply to claims against the state
filed with the California Victim Compensation and Government
Claims Board.

(b) There shall be presented in accordance with begin delete Chapter 1
(commencing with Section 900) end delete begin insert this chapter end insert and Chapter 2
(commencing with Section 910) all claims for money or damages
against the state:

(1) For which no appropriation has been made or for which no
fund is available but the settlement of which has been provided
for by statute or constitutional provision.

(2) For which the appropriation made or fund designated is
exhausted.

(3) For money or damages on express contract, or for an injury
for which the state is liable.

(4) For which settlement is not otherwise provided for by statute
or constitutional provision.

(c) Claimants shall pay a filing fee of twenty-five dollars ($25)
for filing a claim described in subdivision (b). This fee shall be
deposited into the General Fund and may be appropriated in support
of the board as reimbursements to Item 1870-001-0001 of Section
2.00 of the annual Budget Act.

(1) The fee shall not apply to the following persons:

(A) Persons who are receiving benefits pursuant to the
Supplemental Security Income (SSI) and State begin delete Supplemental
Payments end delete begin insert Supplementary Payment end insert (SSP) programs begin delete (Section 12200
to 12205, inclusive, end delete begin insert (Article 5 (commencing with Section 12200)
of Chapter 3 of Part 3 of Division 9 end insert of the Welfare and Institutions
Code), the California Work Opportunity and Responsibility to
Kids Act (CalWORKs) program (Chapter 2 (commencing with
Section 11200) of Part 3 of Division 9 of the Welfare and
Institutions Code), the begin delete Food Stamp Program end delete begin insert federal Supplemental
Nutrition Assistance Program end insert ( begin insert SNAP; end insert 7 U.S.C. Sec. 2011 et seq.),
or Section 17000 of the Welfare and Institutions Code.

(B) Persons whose monthly income is 125 percent or less of the
current monthly poverty line annually established by the Secretary
of California Health and Human Services pursuant to the federal
Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35),
as amended.

(C) Persons who are sentenced to imprisonment in a state prison
or confined in a county jail, or who are residents in a state
institution and, within 90 days prior to the date the claim is filed,
have a balance of one hundred dollars ($100) or less credited to
the inmate’s or resident’s trust account. A certified copy of the
statement of the account shall be submitted.

(2) Any claimant who requests a fee waiver shall attach to the
application a signed affidavit requesting the waiver and verification
of benefits or income and any other required financial information
in support of the request for the waiver.

(3) Notwithstanding any other begin delete provision of end delete law, an applicant
shall not be entitled to a hearing regarding the denial of a request
for a fee waiver.

(d) The time for the board to determine the sufficiency,
timeliness, or any other aspect of the claim shall begin when any
of the following occur:

(1) The claim is submitted with the filing fee.

(2) The fee waiver is granted.

(3) The filing fee is paid to the board upon the board’s denial
of the fee waiver request, so long as payment is received within
10 calendar days of the mailing of the notice of the denial.

(e) Upon approval of the claim by the board, the fee shall be
reimbursed to the claimant, except that no fee shall be reimbursed
if the approved claim was for the payment of an expired warrant.
Reimbursement of the filing fee shall be paid by the state entity
against which the approved claim was filed. If the claimant was
granted a fee waiver pursuant to this section, the amount of the
fee shall be paid by the state entity to the board. The reimbursement
to the claimant or the payment to the board shall be made at the
time the claim is paid by the state entity, or shall be added to the
amount appropriated for the claim in an equity claims bill.

(f) The board may assess a surcharge to the state entity against
which the approved claim was filed in an amount not to exceed
15 percent of the total approved claim. The board shall not include
the refunded filing fee in the surcharge calculation. This surcharge
shall be deposited into the General Fund and may be appropriated
in support of the board as reimbursements to Item 1870-001-0001
of Section 2.00 of the annual Budget Act.

(1) The surcharge shall not apply to approved claims to reissue
expired warrants.

(2) Upon the request of the board in a form prescribed by the
Controller, the Controller shall transfer the surcharges and fees
from the state entity’s appropriation to the appropriation for the
support of the board. However, the board shall not request an
amount that shall be submitted for legislative approval pursuant
to Section 13928.

(g) The filing fee required by subdivision (c) shall apply to all
claims filed after June 30, 2004, or the effective date of this statute.
The surcharge authorized by subdivision (f) may be calculated and
included in claims paid after June 30, 2004, or the effective date
of the statute adding this subdivision.

(h) This section shall not apply to claims made for a violation
of the California Whistleblower Protection Act (Article 3
(commencing with Section 8547) of Chapter 6.5 of Division 1 of
Title 2).

SEC. 66.  

Section 1043 of the Government Code is amended
to read:

1043.  

(a) (1) The executive board of the California Health
Benefit Exchange, as established by Section 100500, shall,
consistent with the federal Centers for Medicare and Medicaid
Services (CMS), Catalog of Minimum Acceptable Risk Standards
for Exchanges (MARS-E), Exchange Reference Architecture
Supplement version 1.0, issued on August 12, 2012, or further
updates, guidance, or regulations, submit to the Department of
Justice fingerprint images and related information required by the
Department of Justice of all employees, prospective employees,
contractors, subcontractors, volunteers, or vendors, whose duties
include or would include access to confidential information,
personal identifying information, personal health information,
federal tax information, or financial information contained in the
information systems and devices of the Exchange, or any other
information as required by federal law or guidance applicable to
state-based exchanges for the purposes of obtaining information
as to the existence and content of a record of state or federal
convictions and also information as to the existence and content
of a record of state or federal arrests for which the Department of
Justice establishes that the person is free on bail or on his or her
recognizance pending trial or appeal.

(2) The board shall require begin delete any end delete begin insert a end insert services contract, interagency
agreement, or public entity agreement that includes or would
include access to information described in paragraph (1), and
entered into, renewed, or amended on or after begin delete the effective date
of this section, end delete begin insert June 17, 2013, end insert to include a provision requiring the
contractor to agree to criminal background checks on its employees,
contractors, agents, or subcontractors who will have access to
information described in paragraph (1) as part of their services
contract, interagency agreement, or public entity agreement with
the board.

(b) The Department of Justice shall forward to the Federal
Bureau of Investigation requests for federal summary criminal
history information received pursuant to paragraph (1) of
subdivision (a). The Department of Justice shall review the
information returned from the Federal Bureau of Investigation and
compile and disseminate a response to the board.

(c) The Department of Justice shall provide a state or federal
level response to the board pursuant to subdivision (p) of Section
11105 of the Penal Code.

(d) The board shall request from the Department of Justice
subsequent notification service, as provided pursuant to Section
11105.2 of the Penal Code, for persons listed in paragraph (1) of
subdivision (a).

(e) The Department of Justice shall charge a fee sufficient to
cover the cost of processing requests pursuant to this section.

SEC. 67.  

Section 1097.1 of the Government Code is amended
to read:

1097.1.  

(a) The Commission shall have the jurisdiction to
commence an administrative action, or a civil action, as set forth
within the limitations of this section and Sections 1097.2, 1097.3,
1097.4, and 1097.5, against an officer or person prohibited by
Section 1090 from making or being interested in contracts, or from
becoming a vendor or purchaser at sales, or from purchasing scrip,
or other evidences of indebtedness, including any member of the
governing board of a school district, who violates any provision
of those laws or who causes any other person to violate any
provision of those laws.

(b) The Commission shall not have jurisdiction to commence
an administrative or civil action or an investigation that might lead
to an administrative or civil action pursuant to subdivision (a)
against a person except upon written authorization from the district
attorney of the county in which the alleged violation occurred. A
civil action alleging a violation of Section 1090 shall not be filed
against a person pursuant to this section if the Attorney General
or a district attorney is pursuing a criminal prosecution of that
person pursuant to Section 1097.

(c) (1) The Commission’s duties and authority under the
Political Reform Act of 1974 (Title 9 (commencing with Section
81000)) to issue opinions or advice shall not be applicable to
Sections 1090, 1091, 1091.1, 1091.2, 1091.3, 1091.4, 1091.5,
1091.6, or 1097, except as provided in this subdivision.

(2) A person subject to Section 1090 may request the
Commission to issue an opinion or advice with respect to his or
her duties under Section 1090, 1091, 1091.1, 1091.2, 1091.3,
1091.4, 1091.5, and 1091.6. The Commission shall decline to issue
an opinion or advice relating to past conduct.

(3) The Commission shall forward a copy of the request for an
opinion or advice to the Attorney General’s office and the local
district attorney prior to proceeding with the advice or opinion.

(4) When issuing the advice or opinion, the Commission shall
either provide to the person who made the request a copy of any
written communications submitted by the Attorney General or a
local district attorney regarding the opinion or advice, or shall
advise the person that no written communications were submitted.
The failure of the Attorney General or a local district attorney to
submit a written communication pursuant to this paragraph shall
not give rise to an inference that the Attorney General or local
district attorney agrees with the opinion or advice.

(5) The opinion or advice, when issued, may be offered as
evidence of good faith conduct by the requester in an enforcement
proceeding, if the requester truthfully disclosed all material facts
and committed the acts complained of in reliance on the opinion
or advice. Any opinion or advice of the Commission issued
pursuant to this subdivision shall not be admissible by any person
other than the requester in any proceeding other than a proceeding
brought by the Commission pursuant to this section. The
Commission shall include in any opinion or advice that it issues
pursuant to this subdivision a statement that the opinion or advice
is not admissible in a criminal proceeding against any individual
other than the requester.

(d)  begin delete Any end delete begin insert A end insert decision issued by the Commission pursuant to an
administrative action commenced pursuant to the jurisdiction
established in subdivision (a) shall not be admissible in any
proceeding other than a proceeding brought by the Commission
pursuant to this section. The Commission shall include in any
decision it issues pursuant to an administrative action commenced
pursuant to the jurisdiction established in subdivision (a) a
statement that the decision applies only to proceedings brought by
the Commission.

(e) The Commission may adopt, amend, and rescind regulations
to govern the procedures of the Commission consistent with the
requirements of this section and Sections 1097.2, 1097.3, 1097.4 begin insert , end insert
and 1097.5. These regulations shall be adopted in accordance with
the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2).

(f) For purposes of this section and Sections 1097.2, 1097.3,
1097.4, and 1097.5, “Commission” means the Fair Political
Practices Commission.

SEC. 68.  

Section 9402 of the Government Code is amended
to read:

9402.  

A begin delete subpena end delete begin insert subpoena end insert is sufficient if it:

(a) States whether the proceeding is before the Senate,
Assembly, or a committee.

(b) Is addressed to the witness.

(c) Requires the attendance of the witness at a time and place
certain.

(d) Is signed by the President of the Senate, Speaker of the
Assembly, or chairman of the committee before whom attendance
of the witness is desired.

SEC. 69.  

Section 11507 of the Government Code is amended
to read:

11507.  

At any time before the matter is submitted for decision,
the agency may file begin insert , end insert or permit the filing of, an amended or
supplemental accusation or District Statement of Reduction in
Force. All parties shall be notified of the filing. If the amended or
supplemental accusation or District Statement of Reduction in
Force presents new charges begin insert , end insert the agency shall afford the respondent
a reasonable opportunity to prepare his or her defense begin delete thereto, end delete begin insert to
the new charges, end insert but he or she shall not be entitled to file a further
pleading unless the agency in its discretion so orders. Any new
charges shall be deemed controverted, and any objections to the
amended or supplemental accusation or District Statement of
Reduction in Force may be made orally and shall be noted in the
record.

SEC. 70.  

Section 6588.7 of the Government Code is amended
to read:

6588.7.  

(a) An authority whose financing activities are limited
to financing utility projects and projects for the use or benefit of
public water agencies may finance utility projects as provided in
this section, including the issuance of rate reduction bonds and the
imposition and adjustment of utility project charges.

(b) (1) A local agency that owns and operates a publicly owned
utility may apply to an authority specified in subdivision (a) to
finance costs of a utility project for the publicly owned utility with
the proceeds of rate reduction bonds if at the time of application,
bonds payable from revenues of the publicly owned utility are, or
upon issuance would be, rated investment grade by a nationally
recognized rating agency. In its application to an authority for the
financing, the local agency shall specify the utility project to be
financed by the rate reduction bonds, the maximum principal
amount, the maximum interest rate, and the maximum stated terms
of the rate reduction bonds.

(2) In order to allow the state to review the issuance of rate
reduction bonds, collect data, ensure transparency, and conduct
an independent analysis of the effectiveness of the use of rate
reduction bonds pursuant to this section, the California Pollution
Control Financing Authority, as defined in Section 44504 of the
Health and Safety Code, shall review each issue of bonds and shall
determine whether the issue is qualified for issuance under the
provisions of this section. The California Pollution Control
Financing Authority shall determine that an issue of rate reduction
bonds is qualified for issuance under this section, if the issuance
satisfies all of the following:

(A) The issuance meets the criteria specified in paragraphs (1)
to (3), inclusive, of subdivision (c).

(B) The projected financing costs, as defined in subdivision (g)
of Section 6585, fall within the normal range of financing costs
for comparable types of debt issuance.

(3) The California Pollution Control Financing Authority shall
establish procedures for the expeditious review of a proposed
issuance pursuant to this section, including, but not limited to, the
establishment of reasonable application fees to reimburse the
California Pollution Control Financing Authority for costs incurred
in administering this section.

(4) The California Pollution Control Financing Authority shall
provide an explanation in writing for any refusal to qualify a
proposed issuance but may not alter or modify any term or
condition related to the utility project property.

(5) The California Pollution Control Financing Authority shall
take action on any completed application submitted to it pursuant
to this section no later than the next meeting of the California
Pollution Control Financing Authority that occurs after at least 60
days following receipt of the application.

(6) The review and qualification pursuant to this section may
be concurrent with an authority’s processing of an application for
financing so as to allow for the issuance of rate reduction bonds
as quickly as feasible.

(7) Notwithstanding any other begin delete provision of end delete law, the California
Pollution Control Financing Authority may adopt regulations
relating to this section as emergency regulations in accordance
with Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3. For purposes of Chapter 3.5 (commencing with Section
11340), including Section 11349.6, the adoption of the regulations
shall be considered by the Office of Administrative Law to be
necessary for the immediate preservation of the public peace, health
and safety, and general welfare.

(8) Annually begin insert , end insert no later than March 31, the California Pollution
Control Financing Authority shall submit to the Legislature a report
of its activities pursuant to this section for the preceding calendar
year ended December 31. The California Pollution Control
Financing Authority shall require information from applicants to
ensure that the necessary data is available to complete this report.
The report may be submitted as a part of the report required
pursuant to Section 44538 of the Health and Safety Code. The
report shall include all of the following:

(A) A listing of applications received.

(B) A listing of proposed issuances qualified under the
provisions of this section.

(C) A report of bonds sold, the interest rates on the bonds,
whether the bond sales were pursuant to public bid or were
negotiated, and any rating given the bonds by a nationally
recognized securities rating organization.

(D) A specification of proposed issuances qualified but not yet
issued.

(E) A comparison of the interest rates and transactional costs
on issuances qualified under this section with interest rates on
comparable types of debt issuance occurring at or near the same
time as the issuances.

(9) (A) The requirement for submitting a report imposed under
paragraph (8) is inoperative on December 31, 2020.

(B) A report to be submitted pursuant to paragraph (8) shall be
submitted in compliance with Section 9795.

(c) A local agency shall not apply to an authority for financing
of a utility project pursuant to this section unless the legislative
body of the local agency has determined all of the following:

(1) The project to be financed is a utility project.

(2) The local agency is electing to finance costs of the utility
project pursuant to this section and the financing costs associated
with the financing are to be paid from utility project property,
including the utility project charge for the rate reduction bonds
issued for the utility project in accordance with this section.

(3) Based on information available to, and projections used by,
the legislative body, the rates of the publicly owned utility plus
the utility project charge resulting from the financing of the utility
project with rate reduction bonds are expected to be lower than
the rates of the publicly owned utility if the utility project was
financed with bonds payable from revenues of the publicly owned
utility.

(d) (1) Subject to the requirements of Article XIII D of the
California Constitution, an authority financing the costs of a utility
project or projects for a local agency’s publicly owned utility with
rate reduction bonds is authorized and directed to impose and
collect a utility project charge with respect to the rate reduction
bonds as provided in this section. The imposition of the utility
project charge shall be made and evidenced by the adoption of a
financing resolution by the governing body of the authority. The
financing resolution with respect to financing a utility project or
project with rate reduction bonds for a publicly owned utility shall
include all of the following:

(A) The addition of a separate charge to the bill of each customer
of the publicly owned utility in the class or classes of customers
specified in the financing resolution.

(B) A description of the financial calculation, formula, or other
method that the authority is to use to determine the utility project
charge. The calculation, formula or other method shall include a
periodic adjustment method to the then current utility project
charge, to be applied at least annually, that shall be begin delete utilized end delete begin insert used end insert
by the authority to correct for any overcollection or undercollection
of financing costs from the utility project charge or any other
adjustment necessary to ensure timely payment of the financing
costs of the rate reduction bonds, including, but not limited to, the
adjustment of the utility project charge to pay any debt service
coverage requirement for the rate reduction bonds. The financial
calculation, formula, or other method, including the periodic
adjustment method, established in the financing resolution pursuant
to this section, and the allocation of utility project charges to, and
among, customers of the publicly owned utility shall be decided
solely by the governing body of the authority and shall be final
and conclusive. In no event shall the periodic adjustment method
established in the financing resolution be applied less frequently
than required by the financing resolution and the documents
relating to the applicable rate reduction bonds. Once the financial
calculation, formula, or other method for determining the utility
project charge, and the periodic adjustment method, have been
established in the financing resolution and have become final and
conclusive as provided in this section, they shall not be changed.

(C) Notwithstanding any other provision of this section, in no
event shall a utility project charge exceed the maximum rate
permitted under Article XIII D of the California Constitution.

(D) A requirement that the authority enter into a servicing
agreement for the collection of the utility project charge with the
local agency for which the financing is undertaken or its publicly
owned utility and the local agency or its publicly owned utility
shall act as a servicing agent for purposes of collecting the utility
project charge as long as the servicing agreement remains in effect.
Moneys collected by the local agency or its publicly owned utility,
acting as a servicing agent on behalf of the authority, as a utility
project charge shall be held in trust for the exclusive benefit of the
persons entitled to the financing costs to be paid, directly or
indirectly, from the utility project charge and shall not lose their
character as revenues of the authority by virtue of possession by
the local agency or its publicly owned utility. The local agency or
its publicly owned utility shall provide the authority with the
information as to estimated sales of water and any other
information concerning the publicly owned utility required by the
authority in connection with the initial establishment and the
adjustment of the utility project charge.

(2) The determination of the legislative body of the local agency
that a project to be financed with rate reduction bonds is a utility
project shall be final and conclusive and the rate reduction bonds
issued to finance the utility project and the utility project charge
imposed relating to the rate reduction bonds shall be valid and
enforceable in accordance with the terms of the financing resolution
and the documents relating to the rate reduction bonds. The
authority shall require, in its financing resolution with respect to
a utility project charge, that as long as a customer in the class or
classes of customers specified in the financing resolution receive
water through the facilities of the publicly owned utility, the
customer shall pay the utility project charge regardless of whether
or not the customer has an agreement to purchase water from a
person or entity other than the publicly owned utility. The utility
project charge shall be a nonbypassable charge to all customers
of the publicly owned utility in the class or classes of customers
specified in the financing resolution at the time of adoption of the
financing resolution and all future customers in that class or classes.
If a customer of the publicly owned utility that is subject to a utility
project charge enters into an agreement to purchase water from a
person or entity other than the publicly owned utility, the customer
shall remain liable for the payment of its share of the utility project
charge as if it had not entered into the agreement. The liability
may be discharged by the continued payment of its share of the
utility project charge as it accrues or by a one-time payment, as
determined by the authority. All provisions of a financing
resolution adopted pursuant to this subdivision shall be binding
on the authority.

(3) The timely and complete payment of all utility project
charges by a person liable for the charges shall be a condition of
receiving water service from the publicly owned utility of the local
agency and each of the local agencies and their publicly owned
utilities is authorized to use its established collection policies and
all rights and remedies provided by law to enforce payment and
collection of the utility project charge. In no event shall a person
liable for a utility project charge be entitled or authorized to
withhold payment, in whole or in part, of the utility project charge
for any reason.

(4) The authority shall determine whether adjustments to the
utility project charge relating to rate reduction bonds are required
upon the issuance of the rate reduction bonds and at least annually,
and at additional intervals as may be provided for in the financing
resolution or the documents relating to the rate reduction bonds.
Each adjustment shall be made and put into effect in accordance
with the financial calculation, formula, or other method that the
authority is to use to determine the utility project charge pursuant
to the financing resolution expeditiously after the authority’s
determination that the adjustment is required.

(5) All revenues with respect to utility project property related
to rate reduction bonds, including payments of the utility project
charge, shall be applied first to the payment of the financing costs
of the related rate reduction bonds then due, including the funding
of reserves for the rate reduction bonds, with any excess being
applied as determined by the authority for the benefit of the utility
for which the rate reduction bonds were issued.

(6) The authority shall be obligated to impose and collect the
utility project charge relating to rate reduction bonds in amounts,
based on estimates of water usage subject to the utility project
charge, sufficient to pay on a timely basis the financing costs
associated with the rate reduction bonds when due. The pledge of
a utility project charge to secure the payment of rate reduction
bonds shall be irrevocable, and the State of California, the
authority, or any limited liability company acting pursuant to
subdivision (i) shall not reduce, impair, or otherwise adjust the
utility project charge, except that the authority shall implement
the periodic adjustments to the utility project charge relating to
rate reduction bonds as required by the applicable financing
resolution and the documents relating to the rate reduction bonds.
Revenue from a utility project charge shall be deemed special
revenue of the authority and shall not constitute revenue of the
local agency or its publicly owned utility for any purpose, including
without limitation, any dedication, commitment, or pledge of
revenue, receipts, or other income that the local agency or its
publicly owned utility has made or will make for the security of
any of its obligations.

(7) A utility project charge shall constitute a utility project
property when, and to the extent that, a financing resolution
authorizing the utility project charge has become effective in
accordance with its terms, and the utility project property shall
thereafter continuously exist as property for all purposes with all
of the rights and privileges of this section for the period, and to
the extent, provided in the financing resolution, but in any event
until all financing costs with respect to the related rate reduction
bonds are paid in full, including all arrearages thereon.

(8) Utility project property shall constitute a current property
right notwithstanding that the value of the property right will
depend on consumers using water or, in those instances where
consumers are customers of the publicly owned utility, the publicly
owned utility performing certain services.

(9)  begin delete In the event end delete begin insert If end insert a local agency for which rate reduction bonds
have been issued and remain outstanding ceases to operate a water
utility, either directly or through its publicly owned utility,
references in this section to the local agency or to its publicly
owned utility shall be to the entity providing water utility services
in lieu of the local agency and the entity shall assume and perform
all obligations of the local agency and its publicly owned utility
required by this section and the servicing agreement with the local
agency while the rate reduction bonds remain outstanding.

(e) (1) Rate reduction bonds shall be within the parameters of
the financing set forth by the local agency pursuant to subdivision
(b) in connection with the rate reduction bonds and the proceeds
of the rate reduction bonds made available to the local agency or
its publicly owned utility shall be begin delete utilized end delete begin insert used end insert for the utility project
identified in the application for financing of the utility project or
projects pursuant to subdivision (b).

(2) An authority shall authorize the issuance of rate reduction
bonds by a resolution of its governing body. An authority issuing
rate reduction bonds shall include in its preliminary notice and
final report for the rate reduction bonds submitted to the California
Debt and Investment Advisory Commission pursuant to Section
8855 a statement that the rate reduction bonds are being issued
pursuant to this section. An authority issuing rate reduction bonds
shall include in its final report for the rate reduction bonds
submitted to the California Debt and Investment Advisory
Commission pursuant to Section 8855 the savings realized by
issuing the rate reduction bonds rather than bonds payable from
the revenues of the publicly owned utility for whose benefit the
rate reduction bonds were issued. Rate reduction bonds shall be
nonrecourse to the credit or any assets of the local agency and the
publicly owned utility for which the utility project is financed and
shall be payable from, and secured by a pledge of, the utility project
property relating to the rate reduction bonds and any additional
security or credit enhancement specified in the documents relating
to the rate reduction bonds.

(3) An authority issuing rate reduction bonds shall pledge the
utility project property relating to the rate reduction bonds as
security for the payment of the rate reduction bonds, which pledge
shall be made pursuant to, and with the effect set forth in Section
5451 begin delete of the Government Code end delete . All rights of an authority with
respect to utility project property pledged as security for the
payment of rate reduction bonds shall be for the benefit of, and
enforceable by, the beneficiaries of the pledge to the extent
provided in the documents relating to the rate reduction bonds.

(4) To the extent that any interest in utility project property is
pledged as security for the payment of rate reduction bonds, the
applicable local agency or its publicly owned utility shall contract
with the authority, which contract shall be part of the utility project
property, that the local agency or its publicly owned utility will
continue to operate its publicly owned utility system that includes
the financed utility project to provide service to its customers, will,
as servicer, collect amounts in respect of the utility project charge
for the benefit and account of the authority and the beneficiaries
of the pledge of the utility project charge and will account for and
remit these amounts to, or for the account of, the authority.

(5) Notwithstanding any other law, any requirement under this
section, a financing resolution, any other resolution of the authority,
or the provisions of the documents relating to rate reduction bonds
to the effect that the authority shall take action with respect to the
utility project property relating to the rate reduction bonds shall
be binding upon the authority, as its governing body may be
constituted from time to time, and the authority shall have no power
or right to rescind, alter, or amend any resolution or document
containing the requirement.

(6) Notwithstanding any begin insert other end insert law, except as otherwise provided
in this section with respect to adjustments to a utility project charge,
the recovery of the financing costs for the rate reduction bonds
from the utility project charge shall be irrevocable and the authority
shall not have the power either by rescinding, altering, or amending
the applicable financing resolution or otherwise, to revalue or
revise for ratemaking purposes the financing costs of rate reduction
bonds, determine that the financing costs for the related rate
reduction bonds or the utility project charge is unjust or
unreasonable, or in any way reduce or impair the value of utility
project property that includes the utility project charge, either
directly or indirectly; nor shall the amount of revenues arising with
respect to the financing costs for the related rate reduction bonds
or the utility project charge be subject to reduction, impairment,
postponement, or termination for any reason until all financing
costs to be paid from the utility project charge are fully met and
discharged. Except as otherwise provided in this section with
respect to adjustments to a utility project charge, the State of
California does hereby pledge and agree with the owners of rate
reduction bonds that the State of California shall neither limit nor
alter the financing costs or the utility project property, including
the utility project charge, relating to the rate reduction bonds, or
any rights in, to or under, the utility project property until all
financing costs with respect to the rate reduction bonds are fully
met and discharged. This section does not preclude limitation or
alteration if and when adequate provision shall be made by law
for the protection of the owners. The authority is authorized to
include this pledge and undertaking by the State of California in
the governing documents for rate reduction bonds. Notwithstanding
any other provision of this section, the authority shall make the
adjustments to the utility project charge relating to rate reduction
bonds provided by this section and the documents related to those
rate reduction bonds as may be necessary to ensure timely payment
of all financing costs with respect to the rate reduction bonds. The
adjustments shall not impose the utility project charge upon classes
of customers which were not subject to the utility project charge
pursuant to the financing resolution imposing the utility project
charge.

(f) (1) Financing costs in connection with rate reduction bonds
do not constitute a debt or liability of the State of California or of
any political subdivision thereof, other than the special obligation
of the authority, and do not constitute a pledge of the full faith and
credit of the State of California or any of its political subdivisions,
including the authority, but are payable solely from the funds
provided therefor under this section and in the documents relating
to the rate reduction bonds. This subdivision shall in no way
preclude guarantees or credit enhancements in connection with
rate reduction bonds. All the rate reduction bonds shall contain on
the face thereof a statement to the following effect:

Neither the full faith and credit nor the taxing power of the State
of California or any political subdivision thereof is pledged to the
payment of the principal of, or interest on, this bond.

(2) The issuance of rate reduction bonds shall not directly,
indirectly, or contingently obligate the State of California or any
political subdivision thereof to levy or to pledge any form of
taxation to pay the rate reduction bonds or to make any
appropriation for their payment.

(g) (1) Utility project property shall constitute property for all
purposes, including for contracts securing rate reduction bonds,
whether or not the revenues and proceeds arising with respect
thereto have accrued.

(2) Subject to the terms of the pledge document with respect to
a pledge of utility project property, the validity and relative priority
of a pledge created or authorized under this section is not defeated
or adversely affected by the commingling of revenues arising with
respect to the utility project property with other funds of the local
agency or the publicly owned utility collecting a utility project
charge on behalf of an authority.

(h) (1) There shall exist a statutory lien on the utility project
property relating to rate reduction bonds. Upon the effective date
of the financing resolution relating to rate reduction bonds, there
shall exist a first priority statutory lien on all utility project
property, then existing or, thereafter arising, to secure the payment
of the rate reduction bonds. This lien shall arise pursuant to law
by operation of this section automatically without any action on
the part of the authority, the local agency or its publicly owned
utility, or any other person. This lien shall secure the payment of
all financing costs, then existing or subsequently arising, to the
holders of the rate reduction bonds, the trustee or representative
for the holders of the rate reduction bonds, and any other entity
specified in the financing resolution or the documents relating to
the rate reduction bonds. This lien shall attach to the utility project
property regardless of who shall own, or shall subsequently be
determined to own, the utility project property including any local
agency or its publicly owned utility, the authority, or any other
person. This lien shall be valid and enforceable against the owner
of the utility project property and all third parties upon the
effectiveness of the financing resolution without any further public
notice.

(2) The statutory lien on utility project property created by this
section is a continuously perfected lien on all revenues and
proceeds arising with respect thereto, whether or not the revenues
or proceeds have accrued. Utility project property shall constitute
property for all purposes, including for contracts securing rate
reduction bonds, whether or not the revenues or proceeds arising
with respect thereto have accrued.

(3) In addition, the authority may require, in a financing
resolution creating utility project property, that, in the event of
default by the local agency or its publicly owned utility, in payment
of revenues arising with respect to the utility project property, the
authority, upon the application by the beneficiaries of the statutory
lien, and without limiting any other remedies available to the
beneficiaries by reason of the default, shall order the sequestration
and payment to the beneficiaries of revenues arising with respect
to the utility project property.

(i) Notwithstanding any other law, an authority that has financed
a utility project through the issuance of rate reduction bonds is not
authorized, and no governmental officer or organization shall be
empowered to authorize the authority, to become a debtor in a case
under the United States Bankruptcy Code (11 U.S.C. Sec. 1 et
seq.) or to become the subject of any similar case or proceeding
under any other law, whether federal or State of California, as long
as any payment obligation from utility project property remains
with respect to the rate reduction bonds.

(j) An authority may elect to effect a financing of a utility project
pursuant to this section through a single member limited liability
company formed by the authority by authorizing the company to
adopt the financing resolution and the authority’s issuing rate
reduction bonds payable from, and secured by a pledge of, amounts
paid by the company to the authority from the applicable utility
project property pursuant to an agreement. The provisions of
subdivisions (g) and (h) shall apply to and be the exclusive method
of perfecting a pledge of utility project property by the company
securing the payment of financing costs under any agreement of
the company in connection with the issuance of rate reduction
bonds. Reference to the authority in this section and in all related
defined terms shall mean or include the company as necessary to
implement this subdivision.

(k) After December 31, 2020, the authority to issue rate
reduction bonds under this section terminates.

SEC. 71.  

Section 12011.5 of the Government Code is amended
to read:

12011.5.  

(a) In the event of a vacancy in a judicial office to
be filled by appointment of the Governor, or in the event that a
declaration of candidacy is not filed by a judge and the Governor
is required under subdivision (d) of Section 16 of Article VI of the
California Constitution to nominate a candidate, the Governor
shall first submit to a designated agency of the State Bar of
California the names of all potential appointees or nominees for
the judicial office for evaluation of their judicial qualifications.

(b) The membership of the designated agency of the State Bar
responsible for evaluation of judicial candidates shall consist of
attorney members and public members with the ratio of public
members to attorney members determined, to the extent practical,
by the ratio established in Section 6013.5 of the Business and
Professions Code. It is the intent of this subdivision that the
designated agency of the State Bar responsible for evaluation of
judicial candidates shall be broadly representative of the ethnic,
gender, and racial diversity of the population of California and
composed in accordance with Sections 11140 and 11141. The
further intent of this subdivision is to establish a selection process
for membership on the designated agency of the State Bar
responsible for evaluation of judicial candidates under which no
member of that agency shall provide inappropriate, multiple
representation for purposes of this subdivision. Each member of
the designated agency of the State Bar responsible for evaluation
of judicial candidates shall complete a minimum of 60 minutes of
training in the areas of fairness and bias in the judicial
appointments process at an orientation for new members. If the
member serves more than one term, the member shall complete
an additional 60 minutes of that training during the member’s
service on the designated agency of the State Bar responsible for
evaluation of judicial candidates.

(c) Upon receipt from the Governor of the names of candidates
for judicial office and their completed personal data questionnaires,
the State Bar shall begin delete employ end delete begin insert use end insert appropriate confidential procedures
to evaluate and determine the qualifications of each candidate with
regard to his or her ability to discharge the judicial duties of the
office to which the appointment or nomination shall be made.
Within 90 days of submission by the Governor of the name of a
potential appointee for judicial office, the State Bar shall report begin insert , end insert
in confidence begin insert , end insert to the Governor its recommendation whether the
candidate is exceptionally well qualified, well qualified, qualified,
or not qualified and the reasons therefor, and may report, in
confidence, other information as the State Bar deems pertinent to
the qualifications of the candidate.

(d) In determining the qualifications of a candidate for judicial
office, the State Bar shall consider, among other appropriate
factors, his or her industry, judicial temperament, honesty,
objectivity, community respect, integrity, health, ability, and legal
experience. The State Bar shall consider legal experience broadly,
including, but not limited to, litigation and nonlitigation experience,
legal work for a business or nonprofit entity, experience as a law
professor or other academic position, legal work in any of the three
branches of government, and legal work in dispute resolution.

(e) The State Bar shall establish and promulgate rules and
procedures regarding the investigation of the qualifications of
candidates for judicial office by the designated agency. These rules
and procedures shall establish appropriate, confidential methods
for disclosing to the candidate the subject matter of substantial and
credible adverse allegations received regarding the candidate’s
health, physical or mental condition, or moral turpitude begin delete which, end delete
begin insert that, end insert unless rebutted, would be determinative of the candidate’s
unsuitability for judicial office. No provision of this section shall
be construed as requiring that begin delete any end delete begin insert a end insert rule or procedure be adopted
that permits the disclosure to the candidate of information from
which the candidate may infer the source, and no information shall
either be disclosed to the candidate nor be obtainable by any
process that would jeopardize the confidentiality of
communications from persons whose opinion has been sought on
the candidate’s qualifications.

(f) All communications, written, verbal, or otherwise, of and to
the Governor, the Governor’s authorized agents or employees,
including, but not limited to, the Governor’s Legal Affairs
Secretary and Appointments Secretary, or of and to the State Bar
in furtherance of the purposes of this section are absolutely
privileged from disclosure and confidential, and any
communication made in the discretion of the Governor or the State
Bar with a candidate or person providing information in furtherance
of the purposes of this section shall not constitute a waiver of the
privilege or a breach of confidentiality.

(g) If the Governor has appointed a person to a trial court who
has been found not qualified by the designated agency, the State
Bar may make public this fact after due notice to the appointee of
its intention to do so, but that notice or disclosure shall not
constitute a waiver of privilege or breach of confidentiality with
respect to communications of or to the State Bar concerning the
qualifications of the appointee.

(h) If the Governor has nominated or appointed a person to the
Supreme Court or court of appeal in accordance with subdivision
(d) of Section 16 of Article VI of the California Constitution, the
Commission on Judicial Appointments may invite, or the State
Bar’s governing board or its designated agency may submit to the
commission, its recommendation, and the reasons therefor, but
that disclosure shall not constitute a waiver of privilege or breach
of confidentiality with respect to communications of or to the State
Bar concerning the qualifications of the nominee or appointee.

(i)  begin delete No end delete begin insert A end insert person or entity shall begin insert not end insert be liable for begin delete any end delete begin insert an end insert injury
caused by begin delete any end delete begin insert an end insert act or failure to act, be it negligent, intentional,
discretionary, or otherwise, in the furtherance of the purposes of
this section, including, but not limited to, providing or receiving
begin delete any end delete information, making begin delete any end delete recommendations, and giving begin delete any end delete
reasons therefor. As used in this section, the term “State Bar”
means its governing board and members thereof, the designated
agency of the State Bar and members thereof, and employees and
agents of the State Bar.

(j) At any time prior to the receipt of the report from the State
Bar specified in subdivision (c) the Governor may withdraw the
name of begin delete any end delete begin insert a end insert person submitted to the State Bar for evaluation
pursuant to this section.

(k) A candidate for judicial office shall not be appointed until
the State Bar has reported to the Governor pursuant to this section,
or until 90 days have elapsed after submission of the candidate’s
name to the State Bar, whichever occurs earlier. The requirement
of this subdivision shall not apply to begin delete any end delete begin insert a end insert vacancy in judicial
office occurring within the 90 days preceding the expiration of the
Governor’s term of office, provided, however, that with respect
to those vacancies and with respect to nominations pursuant to
subdivision (d) of Section 16 of Article VI of the California
Constitution, the Governor shall be required to submit any
candidate’s name to the State Bar in order to provide an
opportunity, if time permits, to make an evaluation.

(l) Nothing in this section shall be construed as imposing an
additional requirement for an appointment or nomination to judicial
office, nor shall anything in this section be construed as adding
begin delete any end delete additional qualifications for the office of a judge.

(m) The Board of Governors of the State Bar shall not conduct
or participate in, or authorize begin delete any end delete begin insert a end insert committee, agency, employee,
or commission of the State Bar to conduct or participate in, begin delete any end delete
begin insert an end insert evaluation, review, or report on the qualifications, integrity,
diligence, or judicial ability of any specific justice of a court
provided for in Section 2 or 3 of Article VI of the California
Constitution without prior review and statutory authorization by
the Legislature, except an evaluation, review, or report on potential
judicial appointees or nominees as authorized by this section.

The provisions of this subdivision shall not be construed to
prohibit a member of the State Bar from conducting or participating
in an evaluation, review, or report in his or her individual capacity.

(n) (1) Notwithstanding any other provision of this section, but
subject to paragraph (2), on or before March 1 of each year for the
prior calendar year, all of the following shall occur:

(A) The Governor shall collect and release, on an aggregate
statewide basis, all of the following:

(i) Demographic data provided by all judicial applicants relative
to ethnicity, race, disability, veteran status, gender, gender identity,
and sexual orientation.

(ii) Demographic data relative to ethnicity, race, disability,
veteran status, gender, gender identity, and sexual orientation as
provided by all judicial applicants, both as to those judicial
applicants who have been and those who have not been submitted
to the State Bar for evaluation.

(iii) Demographic data relative to ethnicity, race, disability,
veteran status, gender, gender identity, and sexual orientation of
all judicial appointments or nominations as provided by the judicial
appointee or nominee.

(B) The designated agency of the State Bar responsible for
evaluation of judicial candidates shall collect and release both of
the following on an aggregate statewide basis:

(i) Statewide demographic data provided by all judicial
applicants reviewed relative to ethnicity, race, disability, veteran
status, gender, gender identity, sexual orientation, and areas of
legal practice and employment.

(ii) The statewide summary of the recommendations of the
designated agency of the State Bar by ethnicity, race, disability,
veteran status, gender, gender identity, sexual orientation, and
areas of legal practice and employment.

(C) The Administrative Office of the Courts shall collect and
release the demographic data provided by justices and judges
described in Article VI of the California Constitution relative to
ethnicity, race, disability, veteran status, gender, gender identity,
and sexual orientation by specific jurisdiction.

(2) For purposes of subparagraph (A) of paragraph (1), in the
year following a general election or recall election that will result
in a new Governor taking office prior to March 1, the departing
Governor shall provide all of the demographic data collected for
the year by that Governor pursuant to this subdivision to the
incoming Governor. The incoming Governor shall then be
responsible for releasing the provided demographic data, and the
demographic data collected by that incoming Governor, if any,
prior to the March 1 deadline imposed pursuant to this subdivision.

(3)  begin delete Any demographic end delete begin insert Demographic end insert data disclosed or released
pursuant to this subdivision shall disclose only aggregated
statistical data and shall not identify any individual applicant,
justice, or judge.

(4) The State Bar and the Administrative Office of the Courts
shall use the following ethnic and racial categories: American
Indian or Alaska Native, Asian, Black or African American,
Hispanic or Latino, Native Hawaiian or other Pacific Islander,
White, some other race, and more than one race, as those categories
are defined by the United States Census Bureau for the 2010
Census for reporting purposes.

(5)  begin delete Any demographic end delete begin insert Demographic end insert data disclosed or released
pursuant to this subdivision shall also indicate the percentage of
respondents who declined to respond.

(6) For purposes of this subdivision, the collection of
demographic data relative to disability and veteran status shall be
required only for judicial applicants, candidates, appointees,
nominees, justices, and judges who apply, or are reviewed,
appointed, nominated, or elected, on or after January 1, 2014. The
release of this demographic data shall begin in 2015.

(7) For purposes of this subdivision, the following terms have
the following meanings:

begin delete

(i)

end delete

begin insert (A) end insert  “Disability” includes mental disability and physical
disability, as defined in subdivisions begin delete (j), (l), end delete begin insert (j) end insert and (m) of Section
12926.

begin delete

(ii)

end delete

begin insert (B) end insert  “Veteran status” has the same meaning as specified in
Section 101(2) of Title 38 of the United States Code.

(o) The Governor and members of judicial selection advisory
committees are encouraged to give particular consideration to
candidates from diverse backgrounds and cultures reflecting the
demographics of California, including candidates with demographic
characteristics underrepresented among existing judges and
justices.

(p) If any provision of this section other than a provision relating
to or providing for confidentiality or privilege from disclosure of
any communication or matter, or the application of the provision
to any person or circumstances, is held invalid, the remainder of
this section begin insert , end insert to the extent it can be given effect, or the application
of the provision to persons or circumstances other than those as
to which it is held invalid, shall not be affected thereby, and to this
extent the provisions of this section are severable. If any other act
of the Legislature conflicts with the provisions of this section, this
section shall prevail.

SEC. 72.  

Section 12012.61 of the Government Code is amended
to read:

12012.61.  

(a) The tribal-state gaming compact entered into in
accordance with the federal Indian Gaming Regulatory Act of
1988 (18 U.S.C. Secs. 1166 to 1168, inclusive, and 25 U.S.C. Sec.
2701 et seq.) between the State of California and the Ramona Band
of Cahuilla, executed on June 10, 2013, is hereby ratified.

(b) (1) In deference to tribal sovereignty, none of the following
shall be deemed a project for purposes of the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code):

(A) The execution of an amendment to the tribal-state gaming
begin delete compacts end delete begin insert compact end insert ratified by this section.

(B) The execution of the tribal-state gaming begin delete compacts end delete begin insert compact end insert
ratified by this section.

(C) The execution of an intergovernmental agreement between
a tribe and a county or city government negotiated pursuant to the
express authority of, or as expressly referenced in, the tribal-state
gaming begin delete compacts end delete begin insert compact end insert ratified by this section.

(D) The execution of an intergovernmental agreement between
a tribe and the Department of Transportation negotiated pursuant
to the express authority of, or as expressly referenced in, the
tribal-state gaming begin delete compacts end delete begin insert compact end insert ratified by this section.

(E) The on-reservation impacts of compliance with the terms
of the tribal-state gaming begin delete compacts end delete begin insert compact end insert ratified by this section.

(F) The sale of compact assets, as defined in subdivision (a) of
Section 63048.6, or the creation of the special purpose trust
established pursuant to Section 63048.65.

(2) Except as expressly provided herein, this subdivision does
not exempt a city, county, or city and county, or the Department
of Transportation, from the requirements of the California
Environmental Quality Act.

SEC. 73.  

Section 13403 of the Government Code is amended
to read:

13403.  

(a) Internal accounting and administrative controls, if
maintained and reinforced through effective monitoring systems
and processes, are the methods through which reasonable
assurances can be given that measures adopted by state agency
heads to safeguard assets, check the accuracy and reliability of
accounting data, promote operational efficiency, and encourage
adherence to prescribed managerial policies are being followed.
The elements of a satisfactory system of internal accounting and
administrative control, shall include, but are not limited to, the
following:

(1) A plan of organization that provides segregation of duties
appropriate for proper safeguarding of state agency assets.

(2) A plan that limits access to state agency assets to authorized
personnel who require these assets in the performance of their
assigned duties.

(3) A system of authorization and recordkeeping procedures
adequate to provide effective accounting control over assets,
liabilities, revenues, and expenditures.

(4) An established system of practices to be followed in
performance of duties and functions in each of the state agencies.

(5) Personnel of a quality commensurate with their
responsibilities.

(6) An effective system of internal review.

(b) State agency heads shall follow these standards of internal
accounting and administrative control in carrying out the
requirements of Section 13402.

(c) Monitoring systems and processes are vital to the following:

(1) Ensuring that routine application of internal controls begin delete do end delete begin insert does end insert
not diminish their efficacy over time.

(2) Providing timely notice and opportunity for correction of
emerging weaknesses with established internal controls.

(3) Facilitating public resources and other decisions by ensuring
availability of accurate and reliable information.

(4) Facilitating production of timely and accurate financial
reports, and the submittal, when appropriate, of recommendations
for how greater efficiencies in support of the agency’s mission
may be attainable via the consolidation or restructuring of
potentially duplicative or inefficient processes, programs, or
practices where it appears such changes may be achieved without
undermining program effectiveness, quality, or customer
satisfaction.

(d) It shall be the responsibility of the Department of Finance,
in consultation with the Controller and State Auditor, to establish
guidelines to state agencies management on how the role of
independent monitor should be staffed, structured, and its reporting
function standardized so it fits within an efficient and normalized
agency administrative framework.

(e) State agency heads shall implement systems and processes
to ensure the independence and objectivity of the monitoring of
internal accounting and administrative control as an ongoing
activity in carrying out the requirements of Section 13402.

SEC. 74.  

Section 13978.8 of the Government Code is amended
to read:

13978.8.  

(a) The Transportation Agency shall prepare a state
freight plan. The state freight plan shall comply with the relevant
provisions of the federal Moving Ahead for Progress in the 21st
Century Act (MAP-21), Public Law 112-141. The agency shall
develop a state freight plan that provides a comprehensive plan to
govern the immediate and long-range planning activities and capital
investments of the state with respect to the movement of freight.

(b) (1) The agency shall establish a freight advisory committee
consisting of a representative cross section of public and private
sector freight stakeholders, including representatives of ports,
shippers, carriers, freight-related associations, the freight industry
workforce, the California Transportation Commission, the
Department of Transportation, the Public Utilities Commission,
the State Lands Commission, the State Air Resources Board,
regional and local governments, and environmental, safety, and
community organizations.

(2) The freight advisory committee shall do all of the following:

(A) Advise the agency on freight-related priorities, issues,
projects, and funding needs.

(B) Serve as a forum for discussion for state transportation
decisions affecting freight mobility.

(C) Communicate and coordinate regional priorities with other
organizations.

(D) Promote the sharing of information between the private and
public sectors on freight issues.

(E) Participate in the development of the state freight plan.

(c) The state freight plan shall include, at a minimum, all of the
following:

(1) An identification of significant freight system trends, needs,
and issues.

(2) A description of the freight policies, strategies, and
performance measures that will guide freight-related transportation
investment decisions.

(3) A description of how the state freight plan will improve the
ability of California to meet the national freight goals established
under Section 167 of Title 23 of the United States Code.

(4) Evidence of consideration of innovative technologies and
operational strategies, including intelligent transportation systems,
that improve the safety and efficiency of freight movement.

(5) In the case of routes on which travel by heavy vehicles,
including mining, agricultural, energy cargo or equipment, and
timber vehicles, is projected to substantially deteriorate the
condition of roadways, a description of improvements that may
be required to reduce or impede the deterioration.

(6) An inventory of facilities with freight mobility issues, such
as truck bottlenecks within California, and a description of the
strategies California is employing to address those freight mobility
issues.

(d) Notwithstanding Section 10231.5, the state freight plan shall
be submitted to the Legislature, the Governor, the California
Transportation Commission, the Public Utilities Commission, and
the State Air Resources Board on or before December 31, 2014,
and every five years thereafter. The state freight plan shall be
submitted pursuant to Section 9795.

(e) The state freight plan required by this section may be
developed separately from, or incorporated into, the statewide
strategic long-range transportation plan required by Section 135
of Title 23 of the United States Code.

(f) The freight begin insert rail end insert element of the state freight plan may be
developed separately from, or incorporated into, the state rail plan
prepared by the Department of Transportation pursuant to Section
14036.

SEC. 75.  

Section 14528.56 of the Government Code is amended
to read:

14528.56.  

The following shall pertain to local alternative
transportation improvement programs developed and approved
pursuant to Sections 14528.5 and 14528.55:

(a) The department shall maintain a separate account in the
state’s Special Deposit Fund for each approved local alternative
transportation improvement program into which it will deposit the
funds derived from the sale of the respective excess properties
pursuant to subdivision (c) of Section 14528.5 and subdivision (c)
of Section 14528.55. All proceeds received by the department from
the sale of those excess properties that are available pursuant to
those subdivisions for the respective local alternative transportation
improvement programs, less reimbursement for costs incurred by
the department for administration of each account, shall be
deposited in each respective account, along with all interest
earnings generated by the funds in the respective account.

(b) Funds in each account shall be available for expenditure by
the local agencies for projects designated in the respective local
alternative transportation improvement program approved by the
commission pursuant to Section 14528.5 or 14528.55.

(c) This section applies only to State Highway Routes 84 and
238, and to the local alternative transportation programs approved
pursuant to Section 14528.5 or 14528.55.

(d) Section 14528.8 does not apply to projects undertaken
pursuant to Section 14528.5 or 14528.55.

(e) A local jurisdiction may, with the concurrence of the
appropriate transportation planning agency, the commission, and
the department, advance a project included in the local alternative
transportation improvement programs prior to the availability of
sufficient funds from the sale of respective excess properties,
through the use of its own funds. A project advanced in this manner
shall be deliverable by the state, or by the local jurisdiction
pursuant to agreement, when proposed by the local jurisdiction.
Advancement of a project or projects shall not change the priority
for funding and delivery of all projects within each respective
approved local alternative transportation improvement program.

(f) A local agency may enter into an agreement with the
appropriate transportation planning agency, the department, and
the commission to use its own funds to develop, purchase
right-of-way for, and construct a transportation project within its
jurisdiction if the project is one that is included in the respective
local alternative transportation improvement program and is funded
by the individual account established in the Special Deposit Fund
pursuant to subdivision (a), and meets all of the following
requirements:

(1) Pursuant to the agreement, and from funds allocated by the
commission for the project when scheduled in the local alternative
transportation improvement program, the department shall
reimburse the local agency for the actual cost of constructing the
project, including the acquisition of right-of-way. Interest or other
debt service costs incurred by local agencies to finance right-of-way
acquisition or construction for the project are not reimbursable.
Reimbursement made to a local agency pursuant to this subdivision
shall be made from the respective account established in the Special
Deposit Fund.

(2) The amount actually reimbursed to the local agency under
paragraph (1) shall be the amount expended by the local agency
for right-of-way and construction. If the expenditure of local funds
does not result in the completion of an operable segment of a
transportation project, reimbursement shall be limited to the actual
amount expended by the local agency for right-of-way or partial
construction, with no escalation factor.

(3) Pursuant to the agreement, and from funds allocated by the
commission for the project when it was scheduled in the local
respective alternative transportation improvement program, the
department shall reimburse the local agency for the actual cost of
developing the project with local funds pursuant to this subdivision.
Reimbursement of project development costs shall not exceed 20
percent of estimated construction costs. In no case shall this
reimbursement exceed any lesser amount mutually agreed to by
the department, commission, and local agency.

(4) Reimbursements made to local agencies pursuant to this
section for expenditures of local voter-approved sales and use tax
revenues shall be used for the same purposes for which the
imposition of the sales and use tax is authorized.

(5) The commission, in consultation with the department and
local transportation officials, shall develop and adopt guidelines
to implement this subdivision.

(g) At the time of its approval of the respective local alternative
transportation improvement program, the commission, in
consultation with the department and representatives from regional
and local agencies, shall also incorporate, into the state
transportation improvement program guidelines, additional
guidelines specific to the local begin delete alterative end delete begin insert alternative end insert transportation
improvement program. The additional guidelines shall include,
but need not be limited to, criteria for project applications,
estimation of costs, assessment of capability to complete the
project, allocation of funds to project phases, timely expenditure
of funds, management of changes to cost, scope, and schedules,
assessment of progress in implementing projects, and audit
requirements.

SEC. 76.  

Section 15920 of the Government Code is amended
to read:

15920.  

Duly authorized team members listed in subdivision
(a) of Section 15914 may exchange intelligence, data, documents,
information, complaints, or lead referrals for the purpose of
investigating criminal tax evasion associated with underground
economic activities. Any member or ex-member of the team, any
agent employed by any agency listed in subdivisions (a) and (b)
of Section begin delete 15912, end delete begin insert 15914, end insert or any person who has at any time
obtained such knowledge from any of the foregoing agencies or
persons shall not divulge, or make known in any manner not
provided by law, any of the confidential information received by,
or reported to, the team. Information exchanged pursuant to this
section shall retain its confidential status and shall remain subject
to the confidentiality provisions contained in the following
provisions:

(a) California Health and Human Services Agency: Subdivision
(c) of Section 6254 of this code and Section 14100.2 of the Welfare
and Institutions Code.

(b) Department of Consumer Affairs: Section 30 of the Business
and Professions Code and Section 56.29 of the Civil Code.

(c) Department of Industrial Relations: Sections 11181, 11183,
and 15553 of this code, Article 7 (commencing with Section 1877)
of Chapter 12 of Part 2 of Division 1 of the Insurance Code, and
Sections 92, 138.7, 1026, 3762, 6309, 6322, 6396, and 6412 of
the Labor Code.

(d) Department of Insurance: Section 11180 of this code and
Sections 1872.6, 1873, 1874.2, 1875.1, 1877.1, 1877.3, 1877.4,
and 1877.5 of the Insurance Code.

(e) Department of Justice: Section 11183.

(f) Department of Motor Vehicles: Sections 1808.2, 1808.4,
1808.5, 1808.6, 1808.21, 1808.24, and 12800.5 of the Vehicle
Code.

(g) Employment Development Department: Sections 1094 and
1095 of the Unemployment Insurance Code.

(h) Franchise Tax Board: Sections 19542, 19542.1, and 19542.3
of the Revenue and Taxation Code.

(i) State Board of Equalization: Section 15619 of this code,
Section 42464.8 of the Public Resources Code, and Sections 7056,
7056.5, 8255, 9255, 9255.1, 30455, 38705, 38706, 43651, 45981,
45982, 45983, 45984, 46751, 50159, 50160, 50161, 55381, 60608,
and 60609 of the Revenue and Taxation Code.

SEC. 77.  

Section 41805 of the Government Code is amended
to read:

41805.  

(a) A city attorney who does not, in fact, exercise
prosecutorial responsibilities on behalf of the city or cities by which
he or she is employed shall not be precluded from defending or
assisting in the defense of, or acting as counsel for, any person
accused of any crime except for violation of any ordinance of the
city or cities by which he or she is employed, provided that:

(1) The city or cities by which the city attorney is employed
expressly relieve the city attorney of any and all prosecutorial
responsibilities on its or their behalf; and

(2) The accused has been informed of and expressly waives any
rights created as a result of any potential conflict created by his or
her attorney’s position as a city attorney.

(b) Where the above provisions are met, begin insert a end insert partner or associate
of a city attorney shall not be prevented from defending or assisting
in the defense of, or acting as counsel for, any person accused of
any crime except for violations of any ordinance of the city or
cities by which his or her partner or associate is employed as a city
attorney.

begin insert (c) end insert begin insert   end insert This section shall not preclude any city from limiting or
prohibiting the private practice of any attorney it retains or
employs.

SEC. 78.  

Section 53313 of the Government Code is amended
to read:

53313.  

A community facilities district may be established under
this chapter to finance any one or more of the following types of
services within an area:

(a) Police protection services, including, but not limited to,
criminal justice services. However, criminal justice services shall
be limited to providing services for jails, detention facilities, and
juvenile halls.

(b) Fire protection and suppression services, and ambulance
and paramedic services.

(c) Recreation program services, library services, maintenance
services for elementary and secondary schoolsites and structures,
and the operation and maintenance of museums and cultural
facilities. A special tax may be levied for any of the services
specified in this subdivision only upon approval of the registered
voters as specified in subdivision (b) of Section 53326. An election
to enact a special tax for recreation program services, library
services, and the operation and maintenance of museums and
cultural facilities may be conducted pursuant to subdivision (c) of
Section 53326.

(d) Maintenance and lighting of parks, parkways, streets, roads,
and open space.

(e) Flood and storm protection services, including, but not
limited to, the operation and maintenance of storm drainage
systems, plowing and removal of snow, and sandstorm protection
systems.

(f) Services with respect to removal or remedial action for the
cleanup of any hazardous substance released or threatened to be
released into the environment. As used in this subdivision, the
terms “remedial action” and “removal” shall have the meanings
set forth in Sections 25322 and 25323, respectively, of the Health
and Safety Code, and the term “hazardous substance” shall have
the meaning set forth in Section 25281 of the Health and Safety
Code. Community facilities districts shall provide the State
Department of Health begin insert Care end insert Services and local health and building
departments with notification of any cleanup activity pursuant to
this subdivision at least 30 days prior to commencement of the
activity.

(g) Maintenance and operation of any real property or other
tangible property with an estimated useful life of five or more
years that is owned by the local agency or by another local agency
pursuant to an agreement entered into under Section 53316.2.

A community facilities district tax approved by vote of the
landowners of the district may only finance the services authorized
in this section to the extent that they are in addition to those
provided in the territory of the district before the district was
created. The additional services shall not supplant services already
available within that territory when the district was created.

Bonds shall not be issued pursuant to this chapter to fund any
of the services specified in this section, although bonds may be
issued to fund capital facilities to be used in providing these
services.

SEC. 79.  

Section 57118 of the Government Code is amended
to read:

57118.  

In any resolution ordering a change of organization or
reorganization subject to the confirmation of the voters, the
commission shall determine that an election will be held:

(a) Within the territory of each city or district ordered to be
incorporated, formed, disincorporated, dissolved begin insert , end insert or consolidated.

(b) Within the entire territory of each district ordered to be
merged with or established as a subsidiary district of a city, or both
within the district and within the entire territory of the city outside
the boundaries of the district.

(c) If the executive officer certifies a petition pursuant to Section
57108 or 57109, within the territory of the district ordered to be
merged with or established as a subsidiary district of a city.

(d) Within the territory ordered to be annexed or detached.

(e) If ordered by the commission pursuant to Section 56876 or
56759, both within the territory ordered to be annexed or detached
and within all or the part of the city or district which is outside of
the territory.

(f) If the election is required by begin delete Section end delete subdivision (b) of
Section 57077.4, separately within the territory of each affected
district that has filed a petition meeting the requirements of
subdivision (b) of Section 57077.4.

SEC. 80.  

Section 70377 of the Government Code is amended
to read:

70377.  

(a)  begin delete Any amounts end delete begin insert Amounts end insert required to be transmitted
by a begin delete county or end delete begin insert county, end insert city and county, or court to the state pursuant
to this section shall be remitted to the State Treasurer no later than
45 days after the end of the month in which the fees, assessments,
or penalties were collected. This remittance shall be accompanied
by begin delete a end delete remittance advice identifying the collection month and the
appropriate account in the State Court Facilities Construction Fund
or the Immediate and Critical Needs Account of the State Court
Facilities Construction Fund to which it is to be deposited. Any
remittance made later than this time shall be considered delinquent
and subject to the interest and penalties specified in this section.

(b) Upon receipt of begin delete any end delete delinquent payment required pursuant
to this section, the Controller shall do the following:

(1) Calculate the interest on the delinquent payment by
multiplying the amount of the delinquent payment at a daily rate
equivalent to the rate of return on money deposited in the Local
Agency Investment Fund pursuant to Section 16429.1 from the
date the payment was originally due to either 30 days after the date
of the issuance by the Controller of the final audit report concerning
the failure to pay or the date of payment by the entity responsible
for the delinquent payment, whichever comes first. In calculating
the interest under this paragraph, the Controller shall apply the
average monthly Local Agency Investment Fund rate over the
period of delinquency.

(2) Calculate a penalty at a daily rate equivalent to 11⁄2 percent
per month from the date 30 days after the date of the issuance by
the Controller of the final audit report concerning the failure to
pay.

(c) Interest or penalty amounts calculated pursuant to subdivision
(b) shall be paid by the county, city and county, or court to the
State Court Facilities Construction Fund or the Immediate and
Critical Needs Account of the State Court Facilities Construction
Fund, whichever is appropriate, no later than 45 days after the end
of the month in which the interest or penalty was calculated.
Payment shall be made by the entity responsible for the error or
other action that caused the failure to pay, as determined by the
Controller in a notice given to that party by the Controller.

(d)  Notwithstanding Section 77009, the court may pay any
penalty or interest imposed pursuant to this section due to an error
or other action by the court from money received from the Trial
Court Trust Fund. This section does not require an increase in a
court’s allocation from the Trial Court Trust Fund.

(e) The Controller may permit a county, city and county, or
court to pay the interest or penalty amounts according to a payment
schedule in the event of a large interest or penalty amount that
causes a hardship to the paying entity.

(f) The party responsible for the error or other action that caused
the failure to pay may include, but is not limited to, the party that
collected the funds who is not the party responsible for remitting
the funds to the State Court Facilities Construction Fund or the
Immediate and Critical Needs Account of the State Court Facilities
Construction Fund, if the collecting party failed to provide or
delayed providing the remitting party with sufficient information
needed by the remitting party to distribute the funds.

(g) The changes made to this section by begin delete the act adding this
subdivision end delete begin insert Chapter 452 of the Statutes of 2013 end insert shall apply to all
delinquent payments for which the Controller has not issued a final
audit before January 1, 2014.

SEC. 81.  

Section 1275.3 of the Health and Safety Code, as
amended by Section 4 of Chapter 722 of the Statutes of 2013, is
amended to read:

1275.3.  

(a) The State Department of Public Health and the
State Department of Developmental Services shall jointly develop
and implement licensing regulations appropriate for begin insert an end insert intermediate
care facility/developmentally disabled-nursing and begin insert an end insert intermediate
care facility/developmentally disabled-continuous nursing.

(b) The regulations adopted pursuant to subdivision (a) shall
ensure that residents of begin insert an end insert intermediate care
facility/developmentally disabled-nursing and begin insert an end insert intermediate care
facility/developmentally disabled-continuous nursing receive
appropriate medical and nursing services, and developmental
program services in a normalized, least restrictive physical and
programmatic environment appropriate to individual resident need.

In addition, the regulations shall do all of the following:

(1) Include provisions for the completion of a clinical and
developmental assessment of placement needs, including medical
and other needs, and the degree to which they are being met, of
clients placed in an intermediate care facility/developmentally
disabled-nursing and begin insert an end insert intermediate care facility/developmentally
disabled-continuous nursing and for the monitoring of these needs
at regular intervals.

(2) Provide for maximum utilization of generic community
resources by clients residing in a facility.

(3) Require the State Department of Developmental Services
to review and approve an applicant’s facility program plan as a
prerequisite to the licensing and certification process.

(4) Require that the physician providing the certification that
placement in the intermediate care facility/developmentally
disabled-nursing or intermediate care facility/developmentally
disabled-continuous nursing is needed, consult with the physician
who begin delete was end delete begin insert is end insert the physician of record at the time the person’s
proposed placement is being considered by the interdisciplinary
team.

(c) Until the departments adopt regulations pursuant to this
section relating to services by begin insert an end insert intermediate care begin delete facilities end delete
begin insert facility end insert /developmentally disabled-nursing, begin insert the end insert licensed intermediate
care facilities/developmentally disabled-nursing shall comply with
federal certification standards for intermediate care facilities for
individuals with intellectual disabilities, as specified in Sections
483.400 to 483.480, inclusive, of Title 42 of the Code of Federal
Regulations, in effect immediately preceding January 1, 2013.

(d)  begin delete Nothing in this end delete begin insert This end insert section begin delete supersedes end delete begin insert shall not supersede end insert
the authority of the State Fire Marshal pursuant to Sections 13113,
13113.5, 13143, and 13143.6 to the extent that these sections are
applicable to community care facilities.

(e) This section shall remain in effect only until January 1, 2018,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2018, deletes or extends that date.

SEC. 82.  

Section 1275.3 of the Health and Safety Code, as
added by Section 5 of Chapter 722 of the Statutes of 2013, is
amended to read:

1275.3.  

(a) The State Department of Public Health and the
State Department of Developmental Services shall jointly develop
and implement licensing regulations appropriate for begin insert an end insert intermediate
care facility/developmentally disabled-nursing and begin insert an end insert intermediate
care facility/developmentally disabled-continuous nursing.

(b) The regulations adopted pursuant to subdivision (a) shall
ensure that residents of begin insert an end insert intermediate care
facility/developmentally disabled-nursing and begin insert an end insert intermediate care
facility/developmentally disabled-continuous nursing receive
appropriate medical and nursing services, and developmental
program services in a normalized, least restrictive physical and
programmatic environment appropriate to individual resident need.

In addition, the regulations shall do all of the following:

(1) Include provisions for the completion of a clinical and
developmental assessment of placement needs, including medical
and other needs, and the degree to which they are being met, of
clients placed in an intermediate care facility/developmentally
disabled-nursing and begin insert an end insert intermediate care facility/developmentally
disabled-continuous nursing and for the monitoring of these needs
at regular intervals.

(2) Provide for maximum utilization of generic community
resources by clients residing in a facility.

(3) Require the State Department of Developmental Services
to review and approve an applicant’s program plan as part of the
licensing and certification process.

(4) Require that the physician providing the certification that
placement in the intermediate care facility/developmentally
disabled-nursing or intermediate care facility/developmentally
disabled-continuous nursing is needed, consult with the physician
who begin delete was end delete begin insert is end insert the physician of record at the time the person’s
proposed placement is being considered by the interdisciplinary
team.

(c) Regulations developed pursuant to this section shall include
licensing fee schedules appropriate to facilities which will
encourage their development.

(d)  begin delete Nothing in this end delete begin insert This end insert section begin delete supersedes end delete begin insert shall not supersede end insert
the authority of the State Fire Marshal pursuant to Sections 13113,
13113.5, 13143, and 13143.6 to the extent that these sections are
applicable to community care facilities.

(e) This section shall become operative on January 1, 2018.

SEC. 83.  

Section 1357.51 of the Health and Safety Code is
amended to read:

1357.51.  

(a) A health benefit plan for group coverage shall
not impose begin delete any end delete begin insert a end insert preexisting condition provision or waivered
condition provision upon begin delete any end delete begin insert an end insert enrollee.

(b) (1) A nongrandfathered health benefit plan for individual
coverage shall not impose begin delete any end delete begin insert a end insert preexisting condition provision
or waivered condition provision upon begin delete any end delete begin insert an end insert enrollee.

(2) A grandfathered health benefit plan for individual coverage
shall not exclude coverage on the basis of a waivered condition
provision or preexisting condition provision for a period greater
than 12 months following the enrollee’s effective date of coverage,
nor limit or exclude coverage for a specific enrollee by type of
illness, treatment, medical condition, or accident, except for
satisfaction of a preexisting condition provision or waivered
condition provision pursuant to this article. Waivered condition
provisions or preexisting condition provisions contained in
individual grandfathered health benefit plans may relate only to
conditions for which medical advice, diagnosis, care, or treatment,
including use of prescription drugs, was recommended or received
from a licensed health practitioner during the 12 months
immediately preceding the effective date of coverage.

(3) If Section 5000A of the Internal Revenue Code, as added
by Section 1501 of PPACA, is repealed or amended to no longer
apply to the individual market, as defined in Section 2791 of the
Public Health Service Act (42 U.S.C. Sec. begin delete 300gg-4) end delete begin insert 300gg-91(e)) end insert ,
paragraph (1) shall become inoperative 12 months after the date
of that repeal or amendment and thereafter paragraph (2) shall
apply also to nongrandfathered health benefit plans for individual
coverage.

(c) (1) A health benefit plan for group coverage may apply a
waiting period of up to 60 days as a condition of employment if
applied equally to all eligible employees and dependents and if
consistent with PPACA. A health benefit plan for group coverage
through a health maintenance organization, as defined in Section
2791 of the federal Public Health Service Act (42 U.S.C. Sec.
begin delete 300gg-3(e)) end delete begin insert 300gg-91(b)(3)) end insert , shall not impose any affiliation period
that exceeds 60 days. A waiting or affiliation period shall not be
based on a preexisting condition of an employee or dependent, the
health status of an employee or dependent, or any other factor
listed in Section 1357.52. An affiliation period shall run
concurrently with a waiting period. During the waiting or affiliation
period, the plan is not required to provide health care services and
begin delete no end delete begin insert a end insert premium shall begin insert not end insert be charged to the subscriber or enrollees.

(2) A health benefit plan for individual coverage shall not
impose begin delete any end delete begin insert a end insert waiting or affiliation period.

(d) In determining whether a preexisting condition provision,
a waivered condition provision, or a waiting or affiliation period
applies to an enrollee, a plan shall credit the time the enrollee was
covered under creditable coverage, provided that the enrollee
becomes eligible for coverage under the succeeding plan contract
within 62 days of termination of prior coverage, exclusive of any
waiting or affiliation period, and applies for coverage under the
succeeding plan within the applicable enrollment period. A plan
shall also credit begin delete any end delete time that an eligible employee must wait
before enrolling in the plan, including any postenrollment or
employer-imposed waiting or affiliation period.

However, if a person’s employment has ended, the availability
of health coverage offered through employment or sponsored by
an employer has terminated, or an employer’s contribution toward
health coverage has terminated, a plan shall credit the time the
person was covered under creditable coverage if the person
becomes eligible for health coverage offered through employment
or sponsored by an employer within 180 days, exclusive of begin delete any end delete begin insert a end insert
waiting or affiliation period, and applies for coverage under the
succeeding plan contract within the applicable enrollment period.

(e) An individual’s period of creditable coverage shall be
certified pursuant to Section 2704(e) of Title XXVII of the federal
Public Health Service Act (42 U.S.C. Sec. 300gg-3(e)).

SEC. 84.  

Section 1367.006 of the Health and Safety Code is
amended to read:

1367.006.  

(a) This section shall apply to nongrandfathered
individual and group health care service plan contracts that provide
coverage for essential health benefits, as defined in Section
1367.005, and that are issued, amended, or renewed on or after
January 1, 2015.

(b) (1) For nongrandfathered health care service plan contracts
in the individual or small group markets, a health care service plan
contract, except a specialized health care service plan contract,
that is issued, amended, or renewed on or after January 1, 2015,
shall provide for a limit on annual out-of-pocket expenses for all
covered benefits that meet the definition of essential health benefits
in Section 1367.005, including out-of-network emergency care
consistent with Section begin delete 1317.4 end delete begin insert 1371.4 end insert .

(2) For nongrandfathered health care service plan contracts in
the large group market, a health care service plan contract, except
a specialized health care service plan contract, that is issued,
amended, or renewed on or after January 1, 2015, shall provide
for a limit on annual out-of-pocket expenses for covered benefits,
including out-of-network emergency care consistent with Section
1371.4. This limit shall only apply to essential health benefits, as
defined in Section 1367.005, that are covered under the plan to
the extent that this provision does not conflict with federal law or
guidance on out-of-pocket maximums for nongrandfathered health
care service plan contracts in the large group market.

(c) (1) The limit described in subdivision (b) shall not exceed
the limit described in Section 1302(c) of PPACA, and any
subsequent rules, regulations, or guidance issued under that section.

(2) The limit described in subdivision (b) shall result in a total
maximum out-of-pocket limit for all essential health benefits equal
to the dollar amounts in effect under Section 223(c)(2)(A)(ii) of
the Internal Revenue Code of 1986 with the dollar amounts
adjusted as specified in Section 1302(c)(1)(B) of PPACA.

(d)  begin delete Nothing in this end delete begin insert This end insert section shall begin insert not end insert be construed to affect
the reduction in cost sharing for eligible enrollees described in
Section 1402 of PPACA, and any subsequent rules, regulations,
or guidance issued under that section.

(e) If an essential health benefit is offered or provided by a
specialized health care service plan, the total annual out-of-pocket
maximum for all covered essential benefits shall not exceed the
limit in subdivision (b). This section shall not apply to a specialized
health care service plan that does not offer an essential health
benefit as defined in Section 1367.005.

(f) The maximum out-of-pocket limit shall apply to any
copayment, coinsurance, deductible, and any other form of cost
sharing for all covered benefits that meet the definition of essential
health benefits in Section 1367.005.

(g) For nongrandfathered health plan contracts in the group
market, “plan year” has the meaning set forth in Section 144.103
of Title 45 of the Code of Federal Regulations. For
nongrandfathered health plan contracts sold in the individual
market, “plan year” means the calendar year.

(h) “PPACA” means the federal Patient Protection and
Affordable Care Act (Public Law 111-148), as amended by the
federal Health Care and Education Reconciliation Act of 2010
(Public Law 111-152), and any rules, regulations, or guidance
issued thereunder.

SEC. 85.  

Section 1375.9 of the Health and Safety Code is
amended to read:

1375.9.  

(a) A health care service plan shall ensure begin insert that end insert there
is at least one full-time equivalent primary care physician for every
2,000 enrollees of the plan. The number of enrollees per primary
care physician may be increased by up to 1,000 additional enrollees
for each full-time equivalent nonphysician medical practitioner
supervised by that primary care physician.

(b) This section shall not require a primary care physician to
accept an assignment of enrollees by a health care service plan
without his or her approval, or that would be contrary to paragraph
(2) of subdivision (b) of Section 1375.7.

(c)  begin delete Nothing in this end delete begin insert This end insert section begin delete shall be interpreted to end delete begin insert does not end insert
modify subdivision (e) of Section 2836.1 of the Business and
Professions Code or subdivision (b) of Section 3516 of the Business
and Professions Code.

(d) For purposes of this section, a primary care provider includes
a “nonphysician medical practitioner,” which is defined as a
physician assistant performing services under the supervision of
a primary care physician in compliance with Chapter 7.7
(commencing with Section 3500) of Division 2 of the Business
and Professions Code or a nurse practitioner performing services
in collaboration with a physician pursuant to Chapter 6
(commencing with Section 2700) of Division 2 of the Business
and Professions Code.

(e) This section shall remain in effect only until January 1, 2019,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2019, deletes or extends that date.

SEC. 86.  

Section 1562.3 of the Health and Safety Code is
amended to read:

1562.3.  

(a) The Director of Social Services, in consultation
with the Director of Health Care Services and the Director of
Developmental Services, shall establish a training program to
ensure that licensees, operators, and staffs of adult residential care
facilities, as defined in paragraph (1) of subdivision (a) of Section
1502, have appropriate training to provide the care and services
for which a license or certificate is issued. The training program
shall be developed in consultation with provider organizations.

(b) (1) An administrator of an adult residential care facility, as
defined in paragraph (1) of subdivision (a) of Section 1502, shall
successfully complete a department-approved certification program
pursuant to subdivision (c) prior to employment.

(2) In those cases where the individual is both the licensee and
the administrator of a facility, the individual shall comply with
both the licensee and administrator requirements of this section.

(3) Failure to comply with this section shall constitute cause for
revocation of the license of the facility.

(4) The licensee shall notify the department within 30 days of
any change in administrators.

(c) (1) The administrator certification program shall require a
minimum of 35 hours of classroom instruction that provides
training on a uniform core of knowledge in each of the following
areas:

(A) Laws, regulations, and policies and procedural standards
that impact the operations of the type of facility for which the
applicant will be an administrator.

(B) Business operations.

(C) Management and supervision of staff.

(D) Psychosocial needs of the facility residents.

(E) Community and support services.

(F) Physical needs for facility residents.

(G) Use, misuse, and interaction of medication commonly used
by facility residents.

(H) Resident admission, retention, and assessment procedures.

(I) Nonviolent crisis intervention for administrators.

(J) Cultural competency and sensitivity in issues relating to the
underserved aging lesbian, gay, bisexual, and transgender
community.

(2) The requirement for 35 hours of classroom instruction
pursuant to this subdivision shall not apply to persons who were
employed as administrators prior to July 1, 1996. A person holding
the position of administrator of an adult residential facility on June
30, 1996, shall file a completed application for certification with
the department on or before April 1, 1998. In order to be exempt
from the 35-hour training program and the test component, the
application shall include documentation showing proof of
continuous employment as the administrator of an adult residential
facility between, at a minimum, June 30, 1994, and June 30, 1996.
An administrator of an adult residential facility who became
certified as a result of passing the department-administered
challenge test, that was offered between October 1, 1996, and
December 23, 1996, shall be deemed to have fulfilled the
requirements of this paragraph.

(3) Unless an extension is granted to the applicant by the
department, an applicant for an administrator’s certificate shall,
within 60 days of the applicant’s completion of classroom
instruction, pass the written test provided in this section.

(d) The department shall not begin the process of issuing a
certificate until receipt of all of the following:

(1) A certificate of completion of the administrator training
required pursuant to this chapter.

(2) The fee required for issuance of the certificate. A fee of one
hundred dollars ($100) shall be charged by the department to cover
the costs of processing the application for certification.

(3) Documentation from the applicant that he or she has passed
the written test.

(4) Submission of fingerprints. The department and the
Department of Justice shall expedite the criminal record clearance
for holders of certificates of completion. The department may
waive the submission for those persons who have a current
clearance on file.

(e) It shall be unlawful for any person not certified under this
section to hold himself or herself out as a certified administrator
of an adult residential facility. A person willfully making any false
representation as being a certified administrator is guilty of a
misdemeanor.

(f) (1) Certificates issued under this section shall be renewed
every two years and renewal shall be conditional upon the
certificate holder submitting documentation of completion of 40
hours of continuing education related to the core of knowledge
specified in subdivision (c). No more than one-half of the required
40 hours of continuing education necessary to renew the certificate
may be satisfied through online courses. All other continuing
education hours shall be completed in a classroom setting. For
purposes of this section, an individual who is an adult residential
facility administrator and who is required to complete the
continuing education hours required by the regulations of the State
Department of Developmental Services, and approved by the
regional center, shall be permitted to have up to 24 of the required
continuing education course hours credited toward the 40-hour
continuing education requirement of this section. Community
college course hours approved by the regional centers shall be
accepted by the department for certification.

(2) Every licensee and administrator of an adult residential
facility is required to complete the continuing education
requirements of this subdivision.

(3) Certificates issued under this section shall expire every two
years, on the anniversary date of the initial issuance of the
certificate, except that any administrator receiving his or her initial
certification on or after January 1, 1999, shall make an irrevocable
election to have his or her recertification date for any subsequent
recertification either on the date two years from the date of issuance
of the certificate or on the individual’s birthday during the second
calendar year following certification. The department shall send
a renewal notice to the certificate holder 90 days prior to the
expiration date of the certificate. If the certificate is not renewed
prior to its expiration date, reinstatement shall only be permitted
after the certificate holder has paid a delinquency fee equal to three
times the renewal fee and has provided evidence of completion of
the continuing education required.

(4) To renew a certificate, the certificate holder shall, on or
before the certificate expiration date, request renewal by submitting
to the department documentation of completion of the required
continuing education courses and pay the renewal fee of one
hundred dollars ($100), irrespective of receipt of the department’s
notification of the renewal. A renewal request postmarked on or
before the expiration of the certificate is proof of compliance with
this paragraph.

(5) A suspended or revoked certificate is subject to expiration
as provided for in this section. If reinstatement of the certificate
is approved by the department, the certificate holder, as a condition
precedent to reinstatement, shall submit proof of compliance with
paragraphs (1) and (2) begin delete of subdivision (f) end delete and shall pay a fee in an
amount equal to the renewal fee, plus the delinquency fee, if any,
accrued at the time of its revocation or suspension. Delinquency
fees, if any, accrued subsequent to the time of its revocation or
suspension and prior to an order for reinstatement, shall be waived
for one year to allow the individual sufficient time to complete the
required continuing education units and to submit the required
documentation. Individuals whose certificates will expire within
90 days after the order for reinstatement may be granted a
three-month extension to renew their certificates during which
time the delinquency fees shall not accrue.

(6) A certificate that is not renewed within four years after its
expiration shall not be renewed, restored, reissued, or reinstated
except upon completion of a certification training program, passing
any test that may be required of an applicant for a new certificate
at that time, and paying the appropriate fees provided for in this
section.

(7) A fee of twenty-five dollars ($25) shall be charged for the
reissuance of a lost certificate.

(8) A certificate holder shall inform the department of his or
her employment status within 30 days of any change.

(g) The certificate shall be considered forfeited under the
following conditions:

(1) The administrator has had a license revoked, suspended, or
denied as authorized under Section 1550.

(2) The administrator has been denied employment, residence,
or presence in a facility based on action resulting from an
administrative hearing pursuant to Section 1522 or begin delete Section end delete 1558.

(h) (1) The department, in consultation with the State
Department of Health Care Services and the State Department of
Developmental Services, shall establish, by regulation, the program
content, the testing instrument, the process for approving
certification training programs, and criteria to be used in
authorizing individuals, organizations, or educational institutions
to conduct certification training programs and continuing education
courses. These regulations shall be developed in consultation with
provider organizations, and shall be made available at least six
months prior to the deadline required for certification. The
department may deny vendor approval to any agency or person in
any of the following circumstances:

(A) The applicant has not provided the department with evidence
satisfactory to the department of the ability of the applicant to
satisfy the requirements of vendorization set out in the regulations
adopted by the department pursuant to subdivision (i).

(B) The applicant person or agency has a conflict of interest in
that the person or agency places its clients in adult residential
facilities.

(C) The applicant public or private agency has a conflict of
interest in that the agency is mandated to place clients in adult
residential facilities and to pay directly for the services. The
department may deny vendorization to this type of agency only as
long as there are other vendor programs available to conduct the
certification training programs and conduct education courses.

(2) The department may authorize vendors to conduct the
administrator’s certification training program pursuant to provisions
set forth in this section. The department shall conduct the written
test pursuant to regulations adopted by the department.

(3) The department shall prepare and maintain an updated list
of approved training vendors.

(4) The department may inspect certification training programs
and continuing education courses, including online courses, at no
charge to the department, to determine if content and teaching
methods comply with regulations. If the department determines
that any vendor is not complying with the intent of this section,
the department shall take appropriate action to bring the program
into compliance, which may include removing the vendor from
the approved list.

(5) The department shall establish reasonable procedures and
timeframes not to exceed 30 days for the approval of vendor
training programs.

(6) The department may charge a reasonable fee, not to exceed
one hundred fifty dollars ($150) every two years to certification
program vendors for review and approval of the initial 35-hour
training program pursuant to subdivision (c). The department may
also charge the vendor a fee not to exceed one hundred dollars
($100) every two years for the review and approval of the
continuing education courses needed for recertification pursuant
to this subdivision.

(7) (A) A vendor of online programs for continuing education
shall ensure that each online course contains all of the following:

(i) An interactive portion in which the participant receives
feedback, through online communication, based on input from the
participant.

(ii) Required use of a personal identification number or personal
identification information to confirm the identity of the participant.

(iii) A final screen displaying a printable statement, to be signed
by the participant, certifying that the identified participant
completed the course. The vendor shall obtain a copy of the final
screen statement with the original signature of the participant prior
to the issuance of a certificate of completion. The signed statement
of completion shall be maintained by the vendor for a period of
three years and be available to the department upon demand. Any
person who certifies as true any material matter pursuant to this
clause that he or she knows to be false is guilty of a misdemeanor.

(B)  begin delete Nothing in this end delete begin insert This end insert subdivision shall begin insert not end insert prohibit the
department from approving online programs for continuing
education that do not meet the requirements of subparagraph (A)
if the vendor demonstrates to the department’s satisfaction that,
through advanced technology, the course and the course delivery
meet the requirements of this section.

(i) The department shall establish a registry for holders of
certificates that shall include, at a minimum, information on
employment status and criminal record clearance.

SEC. 87.  

Section 1796.24 of the Health and Safety Code is
amended to read:

1796.24.  

(a) (1) The department shall establish a home care
aide registry pursuant to this chapter and shall continuously update
the registry information. Upon submission of the home care begin delete aid end delete
begin insert aide end insert application and fingerprints or other identification documents
pursuant to Section 1796.23, the department shall enter into the
home care aide registry the person’s name, identification number,
and an indicator that the person has submitted a home care aide
application and fingerprints or identification documentation. This
person shall be known as a “home care aide applicant.”

(2) A person shall not be entitled to apply to be a registered
home care aide and shall have his or her registration application
returned without the right to appeal if the person would not be
eligible to obtain a license pursuant to Section 1558.1.

(b) (1) Before approving an individual for registration, the
department shall check the individual’s criminal history pursuant
to Section 1522. Upon completion of the searches of the state
summary criminal offender record information and the records of
the Federal Bureau of Investigation, the applicant shall be issued
a criminal record clearance or granted a criminal record exemption
if grounds do not exist for denial pursuant to Section 1522. The
department shall enter that finding in the person’s record in the
home care aide registry and shall notify the person of the action.
This person shall be known as an “independent home care aide”
or an “affiliated home care aide.” If the applicant meets all of the
conditions for registration, except receipt of the Federal Bureau
of Investigation’s criminal offender record information search
response, the department may issue a clearance if the applicant
has signed and submitted a statement that he or she has never been
convicted of a crime in the United States, other than a minor traffic
violation. If, after approval, the department determines that the
registrant has a criminal record, registration may be revoked
pursuant to Section 1796.26.

(2) For purposes of compliance with this section, the department
may permit an applicant to request the transfer of a current criminal
record clearance or exemption for a licensed care facility issued
by the department or a county with delegated licensing authority.
A signed criminal record clearance or exemption transfer request
shall be submitted to the department and shall include a copy of
the person’s driver’s license or valid identification card issued by
the Department of Motor Vehicles, or a valid photo identification
issued by another state or the United States government if the
person is not a California resident. Upon request of the licensee,
who shall enclose a self-addressed envelope for this purpose, the
State Department of Social Services shall verify whether the
individual has a clearance or exemption that can be transferred
pursuant to the requirements of this chapter.

(3) The State Department of Social Services shall hold criminal
record clearances and exemptions in its active files for a minimum
of three years after the individual is no longer on the registry in
order to facilitate a transfer request.

SEC. 88.  

Section 11379 of the Health and Safety Code is
amended to read:

11379.  

(a)  Except as otherwise provided in subdivision (b)
and in Article 7 (commencing with Section begin delete 4211) end delete begin insert 4110) end insert of Chapter
9 of Division 2 of the Business and Professions Code, every person
who transports, imports into this state, sells, furnishes, administers,
or gives away, or offers to transport, import into this state, sell,
furnish, administer, or give away, or attempts to import into this
state or transport any controlled substance which is (1) classified
in Schedule III, IV, or V and which is not a narcotic drug, except
subdivision (g) of Section 11056, (2) specified in subdivision (d)
of Section 11054, except paragraphs (13), (14), (15), (20), (21),
(22), and (23) of subdivision (d), (3) specified in paragraph (11)
of subdivision (c) of Section 11056, (4) specified in paragraph (2)
or (3) of subdivision (f) of Section 11054, or (5) specified in
subdivision (d) or (e), except paragraph (3) of subdivision (e), or
specified in subparagraph (A) of paragraph (1) of subdivision (f),
of Section 11055, unless upon the prescription of a physician,
dentist, podiatrist, or veterinarian, licensed to practice in this state,
shall be punished by imprisonment pursuant to subdivision (h) of
Section 1170 of the Penal Code for a period of two, three, or four
years.

(b)  Notwithstanding the penalty provisions of subdivision (a),
any person who transports any controlled substances specified in
subdivision (a) within this state from one county to another
noncontiguous county shall be punished by imprisonment pursuant
to subdivision (h) of Section 1170 of the Penal Code for three, six,
or nine years.

(c) For purposes of this section, “transports” means to transport
for sale.

(d)  begin delete Nothing in this section is intended to end delete begin insert This section does not end insert
preclude or limit prosecution under an aiding and abetting theory
or a conspiracy theory.

SEC. 89.  

Section 11751 of the Health and Safety Code is
amended to read:

11751.  

(a) Except as provided in Section 131055.2, the State
Department of Health Care Services shall succeed to and be vested
with all the duties, powers, purposes, functions, responsibilities,
and jurisdiction of the former State Department of Alcohol and
Drug Programs.

(b) Any reference in statute, regulation, or contract to the State
Department of Alcohol and Drug Programs or the State Department
of Alcohol and Drug Abuse shall refer to the State Department of
Health Care Services to the extent that they relate to the transfer
of duties, powers, purposes, functions, responsibilities, and
jurisdiction made pursuant to this section.

(c)  begin delete No end delete begin insert A end insert contract, lease, license, or any other agreement to
which the State Department of Alcohol and Drug Programs is a
party shall begin insert not end insert be made void or voidable by reason of the act that
enacted this section, but shall continue in full force and effect with
the State Department of Health Care Services assuming all of the
rights, obligations, and duties of the State Department of Alcohol
and Drug Programs with respect to the transfer of duties, powers,
purposes, functions, responsibilities, and jurisdiction made pursuant
to this section.

(d) (1) All unexpended balances of appropriations and other
funds available for use by the State Department of Alcohol and
Drug Programs in connection with any function or the
administration of any law transferred to the State Department of
Health Care Services pursuant to the act that enacted this section
shall be available for use by the State Department of Health Care
Services for the purpose for which the appropriation was originally
made or the funds were originally available.

(2) The State Department of Health Care Services may, until
July 1, 2017, liquidate the prior years’ encumbrances previously
obligated by the former State Department of Alcohol and Drug
Programs. The Controller shall transfer the following Budget Act
appropriations from the former State Department of Alcohol and
Drug Programs to the State Department of Health Care Services
for use by the State Department of Health Care Services to liquidate
the prior years’ encumbrances previously obligated by the former
State Department of Alcohol and Drug Programs:

(A) Items 4200-001-0001, 4200-001-0139, 4200-001-0243,
4200-001-0816, 4200-001-0890, 4200-001-3113, 4200-101-0001,
4200-101-0890, 4200-102-0001, 4200-103-0001, 4200-104-0001,
and 4200-104-0890 of Section 2.00 of the Budget Act of 2011
(Chapter 33 of the begin delete Statues end delete begin insert Statutes end insert of 2011).

(B) Items 4200-001-0001, 4200-001-0139, 4200-001-0243,
4200-001-0816, 4200-001-0890, 4200-001-3113, 4200-101-0001,
4200-101-0890, 4200-104-0001, and 4200-104-0890 of Section
2.00 of the Budget Act of 2012 (Chapter 21 of the Statutes of
2012).

(e) All books, documents, forms, records, data systems, and
property of the State Department of Alcohol and Drug Programs
with respect to the transfer of duties, powers, purposes, functions,
responsibilities, and jurisdiction made pursuant to this section shall
be transferred to the State Department of Health Care Services.

(f) Positions filled by appointment by the Governor in the State
Department of Alcohol and Drug Programs whose principal
assignment was to perform functions transferred pursuant to this
section shall be transferred to the State Department of Health Care
Services.

(g) All employees serving in state civil service, other than
temporary employees, who are engaged in the performance of
functions transferred pursuant to this section, are transferred to the
State Department of Health Care Services pursuant to the
provisions of Section 19050.9 of the Government Code. The status,
position, and rights of those persons shall not be affected by their
transfer and shall continue to be retained by them pursuant to the
State Civil Service Act (Part 2 (commencing with Section 18500)
of Division 5 of Title 2 of the Government Code), except as to
positions the duties of which are vested in a position exempt from
civil service. The personnel records of all employees transferred
pursuant to this section shall be transferred to the State Department
of Health Care Services.

(h) Any regulation or other action adopted, prescribed, taken,
or performed by an agency or officer in the administration of a
program or the performance of a duty, power, purpose, function,
or responsibility pursuant to this division or Division 10.6
(commencing with Section 11998) in effect prior to July 1, 2013,
shall remain in effect unless or until amended, and shall be deemed
to be a regulation or action of the agency to which or officer to
whom the program, duty, power, purpose, function, responsibility,
or jurisdiction is assigned pursuant to this section.

(i)  begin delete No end delete begin insert A end insert suit, action, or other proceeding lawfully commenced
by or against any agency or other officer of the state, in relation
to the administration of any program or the discharge of any duty,
power, purpose, function, or responsibility transferred pursuant to
this section, shall begin insert not end insert abate by reason of the transfer of the program,
duty, power, purpose, function, or responsibility under that section.

SEC. 90.  

Section 25249.7 of the Health and Safety Code is
amended to read:

25249.7.  

(a) A person who violates or threatens to violate
Section 25249.5 or 25249.6 may be enjoined in any court of
competent jurisdiction.

(b) (1) A person who has violated Section 25249.5 or 25249.6
is liable for a civil penalty not to exceed two thousand five hundred
dollars ($2,500) per day for each violation in addition to any other
penalty established by law. That civil penalty may be assessed and
recovered in a civil action brought in any court of competent
jurisdiction.

(2) In assessing the amount of a civil penalty for a violation of
this chapter, the court shall consider all of the following:

(A) The nature and extent of the violation.

(B) The number of, and severity of, the violations.

(C) The economic effect of the penalty on the violator.

(D) Whether the violator took good faith measures to comply
with this chapter and the time these measures were taken.

(E) The willfulness of the violator’s misconduct.

(F) The deterrent effect that the imposition of the penalty would
have on both the violator and the regulated community as a whole.

(G) Any other factor that justice may require.

(c) Actions pursuant to this section may be brought by the
Attorney General in the name of the people of the State of
California, by a district attorney, by a city attorney of a city having
a population in excess of 750,000, or, with the consent of the
district attorney, by a city prosecutor in a city or city and county
having a full-time city prosecutor, or as provided in subdivision
(d).

(d) Actions pursuant to this section may be brought by a person
in the public interest if both of the following requirements are met:

(1) The private action is commenced more than 60 days from
the date that the person has given notice of an alleged violation of
Section 25249.5 or 25249.6 that is the subject of the private action
to the Attorney General and the district attorney, city attorney, or
prosecutor in whose jurisdiction the violation is alleged to have
occurred, and to the alleged violator. If the notice alleges a
violation of Section 25249.6, the notice of the alleged violation
shall include a certificate of merit executed by the attorney for the
noticing party, or by the noticing party, if the noticing party is not
represented by an attorney. The certificate of merit shall state that
the person executing the certificate has consulted with one or more
persons with relevant and appropriate experience or expertise who
has reviewed facts, studies, or other data regarding the exposure
to the listed chemical that is the subject of the action, and that,
based on that information, the person executing the certificate
believes there is a reasonable and meritorious case for the private
action. Factual information sufficient to establish the basis of the
certificate of merit, including the information identified in
paragraph (2) of subdivision (h), shall be attached to the certificate
of merit that is served on the Attorney General.

(2)  begin delete Neither the end delete begin insert The end insert Attorney General, a district attorney, a city
attorney, begin delete nor end delete begin insert or end insert a prosecutor has begin insert not end insert commenced and is begin insert not end insert
diligently prosecuting an action against the violation.

(e) A person bringing an action in the public interest pursuant
to subdivision (d) and a person filing an action in which a violation
of this chapter is alleged shall notify the Attorney General that the
action has been filed. Neither this subdivision nor the procedures
provided in subdivisions (f) to (k), inclusive, affect the
requirements imposed by statute or a court decision in existence
on January 1, 2002, concerning whether a person filing an action
in which a violation of this chapter is alleged is required to comply
with the requirements of subdivision (d).

(f) (1) A person filing an action in the public interest pursuant
to subdivision (d), a private person filing an action in which a
violation of this chapter is alleged, or a private person settling a
violation of this chapter alleged in a notice given pursuant to
paragraph (1) of subdivision (d), shall, after the action or violation
is subject either to a settlement or to a judgment, submit to the
Attorney General a reporting form that includes the results of that
settlement or judgment and the final disposition of the case, even
if dismissed. At the time of the filing of a judgment pursuant to
an action brought in the public interest pursuant to subdivision (d),
or an action brought by a private person in which a violation of
this chapter is alleged, the plaintiff shall file an affidavit verifying
that the report required by this subdivision has been accurately
completed and submitted to the Attorney General.

(2) A person bringing an action in the public interest pursuant
to subdivision (d), or a private person bringing an action in which
a violation of this chapter is alleged, shall, after the action is either
subject to a settlement, with or without court approval, or to a
judgment, submit to the Attorney General a report that includes
information on any corrective action being taken as a part of the
settlement or resolution of the action.

(3) The Attorney General shall develop a reporting form that
specifies the information that shall be reported, including, but not
limited to, for purposes of subdivision (e), the date the action was
filed, the nature of the relief sought, and for purposes of this
subdivision, the amount of the settlement or civil penalty assessed,
other financial terms of the settlement, and any other information
the Attorney General deems appropriate.

(4) If there is a settlement of an action brought by a person in
the public interest under subdivision (d), the plaintiff shall submit
the settlement, other than a voluntary dismissal in which no
consideration is received from the defendant, to the court for
approval upon noticed motion, and the court may approve the
settlement only if the court makes all of the following findings:

(A) The warning that is required by the settlement complies
with this chapter.

(B) The award of attorney’s fees is reasonable under California
law.

(C) The penalty amount is reasonable based on the criteria set
forth in paragraph (2) of subdivision (b).

(5) The plaintiff subject to paragraph (4) has the burden of
producing evidence sufficient to sustain each required finding.
The plaintiff shall serve the motion and all supporting papers on
the Attorney General, who may appear and participate in a
proceeding without intervening in the case.

(6) Neither this subdivision nor the procedures provided in
subdivision (e) and subdivisions (g) to (k), inclusive, affect the
requirements imposed by statute or a court decision in existence
on January 1, 2002, concerning whether claims raised by a person
or public prosecutor not a party to the action are precluded by a
settlement approved by the court.

(g) The Attorney General shall maintain a record of the
information submitted pursuant to subdivisions (e) and (f) and
shall make this information available to the public.

(h) (1) Except as provided in paragraph (2), the basis for the
certificate of merit required by subdivision (d) is not discoverable.
However, nothing in this subdivision precludes the discovery of
information related to the certificate of merit if that information
is relevant to the subject matter of the action and is otherwise
discoverable, solely on the ground that it was used in support of
the certificate of merit.

(2) Upon the conclusion of an action brought pursuant to
subdivision (d) with respect to a defendant, if the trial court
determines that there was no actual or threatened exposure to a
listed chemical, the court may, upon the motion of that alleged
violator or upon the court’s own motion, review the basis for the
belief of the person executing the certificate of merit, expressed
in the certificate of merit, that an exposure to a listed chemical had
occurred or was threatened. The information in the certificate of
merit, including the identity of the persons consulted with and
relied on by the certifier, and the facts, studies, or other data
reviewed by those persons, shall be disclosed to the court in an
in-camera proceeding at which the moving party shall not be
present. If the court finds that there was no credible factual basis
for the certifier’s belief that an exposure to a listed chemical had
occurred or was threatened, then the action shall be deemed
frivolous within the meaning of Section 128.7 of the Code of Civil
Procedure. The court shall not find a factual basis credible on the
basis of a legal theory of liability that is frivolous within the
meaning of Section 128.7 of the Code of Civil Procedure.

(i) The Attorney General may provide the factual information
submitted to establish the basis of the certificate of merit on request
to a district attorney, city attorney, or prosecutor within whose
jurisdiction the violation is alleged to have occurred, or to any
other state or federal government agency, but in all other respects
the Attorney General shall maintain, and ensure that all recipients
maintain, the submitted information as confidential official
information to the full extent authorized in Section 1040 of the
Evidence Code.

(j) In an action brought by the Attorney General, a district
attorney, a city attorney, or a prosecutor pursuant to this chapter,
the Attorney General, district attorney, city attorney, or prosecutor
may seek and recover costs and attorney’s fees on behalf of a party
who provides a notice pursuant to subdivision (d) and who renders
assistance in that action.

(k)  begin delete Any end delete begin insert A end insert person who serves a notice of alleged violation
pursuant to paragraph (1) of subdivision (d) for an exposure
identified in subparagraph (A), (B), (C), or (D) of paragraph (1)
shall complete, as appropriate, and provide to the alleged violator,
a notice of special compliance procedure and proof of compliance
form pursuant to subdivision (l) and shall not file an action for that
exposure against the alleged violator, or recover from the alleged
violator in a settlement any payment in lieu of penalties or any
reimbursement for costs and attorney’s fees, if all of the following
conditions have been met:

(1) The notice given pursuant to paragraph (1) of subdivision
(d) was served on or after begin delete the effective date of the act amending
this section during the 2013-14 Regular Session end delete begin insert October 5, 2013, end insert
and alleges that the alleged violator failed to provide clear and
reasonable warning as required under Section 25249.6 regarding
one or more of the following, and no other violation:

(A) An exposure to alcoholic beverages that are consumed on
the alleged violator’s premises begin insert , end insert to the extent onsite consumption
is permitted by law.

(B) An exposure to a chemical known to the state to cause cancer
or reproductive toxicity in a food or beverage prepared and sold
on the alleged violator’s premises primarily intended for immediate
consumption on or off premises, to the extent begin delete of end delete both of the
following begin insert conditions apply end insert :

(i) The chemical was not intentionally added.

(ii) The chemical was formed by cooking or similar preparation
of food or beverage components necessary to render the food or
beverage palatable or to avoid microbiological contamination.

(C) An exposure to environmental tobacco smoke caused by
begin insert the end insert entry of begin delete persons (other than employees) end delete begin insert persons, other than
employees, end insert on premises owned or operated by the alleged violator
where smoking is permitted at any location on the premises.

(D) An exposure to chemicals known to the state to cause cancer
or reproductive toxicity in engine exhaust, to the extent the
exposure occurs inside a facility owned or operated by the alleged
violator and primarily intended for parking noncommercial
vehicles.

(2) Within 14 days after service of the notice, the alleged violator
has done all of the following:

(A) Corrected the alleged violation.

(B) (i) Agreed to pay a civil penalty for the alleged violation
of Section begin delete 25496.6 end delete begin insert 25249.6 end insert in the amount of five hundred dollars
($500), to be adjusted quinquennially pursuant to clause (ii), per
facility or premises where the alleged violation occurred, of which
75 percent shall be deposited in the Safe Drinking Water and Toxic
Enforcement Fund, and 25 percent shall be paid to the person that
served the notice as provided in Section 25249.12.

(ii) On April 1, 2019, and at each five-year interval thereafter,
the dollar amount of the civil penalty provided pursuant to this
subparagraph shall be adjusted by the Judicial Council based on
the change in the annual California Consumer Price Index for All
Urban Consumers, published by the Department of Industrial
Relations, Division of Labor Statistics, for the most recent five-year
period ending on December 31 of the year preceding the year in
which the adjustment is made, rounded to the nearest five dollars
($5). The Judicial Council shall quinquennially publish the dollar
amount of the adjusted civil penalty provided pursuant to this
subparagraph, together with the date of the next scheduled
adjustment.

(C) Notified, in writing, the person that served the notice of the
alleged violation, that the violation has been corrected. The written
notice shall include the notice of special compliance procedure
and proof of compliance form specified in subdivision (l), which
was provided by the person serving notice of the alleged violation
and which shall be completed by the alleged violator as directed
in the notice.

(3) The alleged violator shall deliver the civil penalty to the
person that served the notice of the alleged violation within 30
days of service of that notice, and the person that served the notice
of violation shall remit the portion of the penalty due to the Safe
Drinking Water and Toxic Enforcement Fund within 30 days of
receipt of the funds from the alleged violator.

(l) The notice required to be provided to an alleged violator
pursuant to subdivision (k) shall be presented as follows:

PRINTER PLEASE NOTE: TIP-IN MATERIAL TO BE
INSERTED

[2 pages]

(m) An alleged violator may satisfy the conditions set forth in
subdivision (k) only one time for a violation arising from the same
exposure in the same facility or on the same premises.

(n)  begin delete Nothing in subdivision end delete begin insert Subdivision end insert (k) shall begin insert not end insert prevent the
Attorney General, a district attorney, a city attorney, or a prosecutor
in whose jurisdiction the violation is alleged to have occurred from
filing an action pursuant to subdivision (c) against an alleged
violator. In any such action, the amount of any civil penalty for a
violation shall be reduced to reflect any payment made by the
alleged violator for the same alleged violation pursuant to
subparagraph (B) of paragraph (2) of subdivision (k).

SEC. 91.  

Section 25269.1 of the Health and Safety Code is
amended to read:

25269.1.  

For purposes of this begin delete article, end delete begin insert chapter, end insert the following
terms have the following meaning:

(a)  “Department” means the Department of Toxic Substances
Control.

(b)  “Direct oversight costs” means the costs to the department
of overseeing a cleanup action, pursuant to the authority specified
in subdivision (a) of Section 25269.2, that can be specifically
attributed to a particular cost objective, including, but not limited
to, sites, facilities, and activities.

(c)  “Indirect oversight costs” means the costs to the department
of activity that is of a common or joint purpose benefiting more
than one cost objective and not readily assignable to a single case
objective.

(d)  “Pro rata” means the general administrative costs expended
by central service agencies to provide centralized services to state
agencies, as defined in the State Administrative Manual.

SEC. 92.  

Section 121022 of the Health and Safety Code is
amended to read:

121022.  

(a) To ensure knowledge of current trends in the HIV
epidemic and to ensure that California remains competitive for
federal HIV and AIDS funding, health care providers and
laboratories shall report cases of HIV infection to the local health
officer using patient names on a form developed by the department.
Both the local health officer and the department shall be authorized
to access reports of HIV infection that are electronically submitted
by laboratories pursuant to subdivision (g) of Section 120130.
Local health officers shall report unduplicated HIV cases by name
to the department on a form developed by the department.

(b) (1) Health care providers and local health officers shall
submit cases of HIV infection pursuant to subdivision (a) by courier
service, United States Postal Service express mail or registered
mail, other traceable mail, person-to-person transfer, facsimile, or
electronically by a secure and confidential electronic reporting
system established by the department.

(2) This subdivision shall be implemented using the existing
resources of the department.

(c) The department and local health officers shall ensure
continued reasonable access to anonymous HIV testing through
alternative testing sites, as established by Section 120890, and in
consultation with HIV planning groups and affected stakeholders,
including representatives of persons living with HIV and health
officers.

(d) The department shall promulgate emergency regulations to
conform the relevant provisions of Article 3.5 (commencing with
Section 2641.5) begin insert of Subchapter 1 end insert of Chapter 4 of Division 1 of Title
17 of the California Code of Regulations, consistent with this
chapter, by April 17, 2007. Notwithstanding the Administrative
Procedure Act (Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code), if the
department revises the form used for reporting pursuant to
subdivision (a) after consideration of the reporting guidelines
published by the federal Centers for Disease Control and
Prevention, the revised form shall be implemented without being
adopted as a regulation, and shall be filed with the Secretary of
State and printed in Title 17 of the California Code of Regulations.

(e) Pursuant to Section 121025, reported cases of HIV infection
shall not be disclosed, discoverable, or compelled to be produced
in any civil, criminal, administrative, or other proceeding.

(f) State and local health department employees and contractors
shall be required to sign confidentiality agreements developed by
the department that include information related to the penalties for
a breach of confidentiality and the procedures for reporting a breach
of confidentiality, prior to accessing confidential HIV-related
public health records. Those agreements shall be reviewed annually
by either the department or the appropriate local health department.

(g)   begin delete No end delete begin insert A end insert person shall begin insert not end insert disclose identifying information
reported pursuant to subdivision (a) to the federal government,
including, but not limited to, any agency, employee, agent,
contractor, or anyone else acting on behalf of the federal
government, except as permitted under subdivision (b) of Section
121025.

(h) (1) Any potential or actual breach of confidentiality of
HIV-related public health records shall be investigated by the local
health officer, in coordination with the department, when
appropriate. The local health officer shall immediately report any
evidence of an actual breach of confidentiality of HIV-related
public health records at a city or county level to the department
and the appropriate law enforcement agency.

(2) The department shall investigate any potential or actual
breach of confidentiality of HIV-related public health records at
the state level, and shall report any evidence of such a breach of
confidentiality to an appropriate law enforcement agency.

(i) Any willful, negligent, or malicious disclosure of cases of
HIV infection reported pursuant to subdivision (a) shall be subject
to the penalties prescribed in Section 121025.

(j)  begin delete Nothing in this section shall be construed to end delete begin insert This section
does not end insert limit other remedies and protections available under state
or federal law.

SEC. 93.  

Section 121026 of the Health and Safety Code is
amended to read:

121026.  

(a) Notwithstanding subdivision (f) of Section 120980,
Section 121010, subdivision (g) of Section 121022, subdivision
(f) of Section 121025, Section 121115, and Section 121280, the
State Department of Public Health and qualified entities may share
with each other health records involving the diagnosis, care, and
treatment of human immunodeficiency virus (HIV) or acquired
immunodeficiency syndrome (AIDS) related to a beneficiary
enrolled in federal Ryan White Act funded programs who may be
eligible for services under the federal Patient Protection and
Affordable Care Act (Public Law 111-148), as amended by the
begin insert federal end insert Health Care and Education Reconciliation Act of 2010
(Public Law 111-152). The qualified entities, who shall be covered
entities under the begin insert federal end insert Health Insurance Portability and
Accountability Act begin delete (42 U.S.C. Sec. 300gg) end delete begin insert (Public Law 104-191) end insert
and the final regulations issued pursuant to the act by the United
States Department of Health and Human Services (45 C.F.R. Parts
160 and 164), may share records only for the purpose of enrolling
the beneficiary in Medi-Cal, the bridge programs, Medicaid
expansion programs, and any insurance plan certified by the
California Health Benefit Exchange established pursuant to Title
22 (commencing with Section 100500) of the Government Code,
or any other programs authorized under the federal Patient
Protection and Affordable Care Act (Public Law 111-148), and
for the purpose of continuing his or her access to those programs
and plans without disruption.

(b) The information provided by the State Department of Public
Health pursuant to this section shall be limited to only the
information necessary for the purposes of this section and shall
not include HIV or AIDS surveillance data. This information shall
not be further disclosed by a qualified entity, except to any or all
of the following as necessary for the purposes of this section:

(1) The person who is the subject of the record or to his or her
guardian or conservator.

(2) The provider of health care for the person with HIV or AIDS
to whom the information pertains.

(3) The Office of AIDS within the State Department of Public
Health.

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

(1) “Contractor” means any person or entity that is a medical
group, independent practice association, pharmaceutical benefits
manager, or a medical service organization and is not a health care
service plan or provider of health care.

(2) “Provider of health care” means any person licensed or
certified pursuant to Division 2 (commencing with Section 500)
of the Business and Professions Code; any person licensed pursuant
to the Osteopathic Initiative Act or the Chiropractic Initiative Act;
any person certified pursuant to Division 2.5 (commencing with
Section 1797) of the Health and Safety Code; any clinic, health
dispensary, or health facility licensed pursuant to Division 2
(commencing with Section 1200) of the Health and Safety Code.

(3) “Qualified entity” means any of the following:

(A) The State Department of Health Care Services.

(B) The California Health Benefit Exchange established pursuant
to Title 22 (commencing with Section 100500) of the Government
Code.

(C) Medi-Cal managed care plans.

(D) Health plans participating in the Bridge Program.

(E) Health plans offered through the Exchange.

(F) County health departments delivering HIV or AIDS health
care services.

(d) Notwithstanding any other law, information shared pursuant
to this section shall not be disclosed, discoverable, or compelled
to be produced in any civil, criminal, administrative, or other
proceeding.

(e) This section shall be implemented only to the extent
permitted by federal law. All employees and contractors of a
qualified entity who have access to confidential HIV-related
medical records pursuant to this section shall be subject to, and all
information shared pursuant to this section shall be protected in
accordance with, the federal Health Insurance Portability and
Accountability Act begin delete (42 U.S.C. Sec. 300gg) end delete begin insert (Public Law 104-191) end insert
and the final regulations issued pursuant to that act by the United
States Department of Health and Human Services (45 C.F.R. Parts
160 and 164), the Confidentiality of Medical Information Act (Part
2.6 (commencing with Section 56) of Division 1 of the Civil Code),
and the Insurance Information and Privacy Protection Act (Article
6.6 (commencing with Section 791) of Part 2 of Division 1 of the
Insurance Code).

SEC. 94.  

Section 123367 of the Health and Safety Code is
amended to read:

123367.  

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

begin insert

(1) “Baby-Friendly Hospital Initiative” means the program
sponsored by the World Health Organization (WHO) and the
United Nations Children’s Fund (UNICEF) that recognizes
hospitals that offer an optimal level of care for infant feeding.

end insert begin delete

(1)

end delete

begin insert (2) end insert  “Perinatal unit” means a maternity and newborn service of
the hospital for the provision of care during pregnancy, labor,
delivery, and postpartum and neonatal periods with appropriate
staff, space, equipment, and supplies.

begin delete

(2) “Baby-Friendly Hospital Initiative” means the program
sponsored by the World Health Organization (WHO) and the
United Nations Children’s Fund (UNICEF) that recognizes
hospitals that offer an optimal level of care for infant feeding.

end delete

(b) All general acute care hospitals and special hospitals, as
defined in subdivisions (a) and (f) of Section 1250, that have a
perinatal unit shall, by January 1, 2025, adopt the “Ten Steps to
Successful Breastfeeding,” as adopted by Baby-Friendly USA, per
the Baby-Friendly Hospital Initiative, or an alternate process
adopted by a health care service plan that includes begin delete evidenced-based end delete
begin insert evidence-based end insert policies and practices and targeted outcomes, or
the Model Hospital Policy Recommendations as defined in
paragraph (3) of subdivision (b) of Section 123366.

SEC. 95.  

Section 130301 of the Health and Safety Code is
amended to read:

130301.  

The Legislature finds and declares the following:

(a) The federal Health Insurance Portability and Accountability
Act begin delete (42 U.S.C. Sec. 300gg), end delete begin insert (Public Law 104-191), end insert known as
HIPAA, was enacted on August 21, 1996.

(b) HIPAA extends health coverage benefits to workers after
they terminate or change employment by allowing the worker to
participate in existing group coverage plans, thereby avoiding the
additional expense associated with obtaining individual coverage
as well as the potential loss of coverage because of a preexisting
health condition.

(c) Administrative simplification is a key feature of HIPAA,
requiring standard national identifiers for providers, employers,
and health plans and the development of uniform standards for the
coding and transmission of claims and health care information.
Administration simplification is intended to promote the use of
information technology, thereby reducing costs and increasing
efficiency in the health care industry.

(d) HIPAA also contains new standards for safeguarding the
privacy and security of health information. Therefore, the
development of policies for safeguarding the privacy and security
of health records is a fundamental and indispensable part of HIPAA
implementation that must accompany or precede the expansion or
standardization of technology for recording or transmitting health
information.

(e) The federal begin insert Department of end insert Health and Human Services
begin delete Agency end delete has published, and continues to publish, rules pertaining
to the implementation of HIPAA. Following a 60-day congressional
concurrence period, health providers and insurers have 24 months
in which to implement these rules.

(f) These federal rules directly apply to state and county
departments that provide health coverage, health care, mental
health services, and alcohol and drug treatment programs. Other
state and county departments are subject to these rules to the extent
they use or exchange information with the departments to which
the federal rules directly apply.

(g) In view of the substantial changes that HIPAA will require
in the practices of both private and public health entities and their
business associates, the ability of California government to
continue the delivery of vital health services will depend upon the
implementation of HIPAA in a manner that is coordinated among
state departments as well as our partners in county government
and the private health sector.

(h) The implementation of HIPAA shall be accomplished as
required by federal law and regulations and shall be a priority for
state departments.

SEC. 96.  

Section 395 of the Insurance Code is amended to
read:

395.  

After a covered loss, an insurer shall provide, free of
charge, a complete copy of the insured’s current insurance policy
or certificate within 30 calendar days of receipt of a request from
the insured. The begin delete time end delete period for providing the insurance policy or
certificate may be extended by the commissioner. An insured who
does not experience a covered loss shall, upon request, be entitled
to one free copy of his or her current insurance policy or certificate
annually. The insurance policy or certificate provided to the insured
shall include, where applicable, the policy declarations page. This
section shall not apply to commercial policies issued pursuant to
Sections 675.5 and 676.6, and policies of workers’ compensation
insurance, as defined in Section 109.

SEC. 97.  

Section 791.29 of the Insurance Code is amended to
read:

791.29.  

(a) Notwithstanding any other law, and to the extent
permitted by federal law, a health insurer shall take the following
steps to protect the confidentiality of an insured’s medical
information on and after January 1, 2015:

(1) A health insurer shall permit an insured to request, and shall
accommodate requests for, communication in the form and format
requested by the individual, if it is readily producible in the
requested form and format, or at alternative locations, if the insured
clearly states either that the communication discloses medical
information or provider name and address relating to receipt of
sensitive services or that disclosure of all or part of the medical
information or provider name and address could endanger him or
her.

(2) A health insurer may require the insured to make a request
for a confidential communication described in paragraph (1) in
writing or by electronic transmission.

(3) A health insurer may require that a confidential
communications request contain a statement that the request
pertains to either medical information related to the receipt of
sensitive services or that disclosure of all or part of the medical
information could endanger the insured. The health insurer shall
not require an explanation as to the basis for a insured’s statement
that disclosure could endanger the insured.

(4) The confidential communication request shall be valid until
the insured submits a revocation of the request, or a new
confidential communication request is submitted.

(5) For the purposes of this section, a confidential
communications request begin delete must end delete begin insert shall end insert be implemented by the health
insurer within seven calendar days of the receipt of an electronic
transmission or telephonic request or within 14 calendar days of
receipt by first-class mail. The health insurer shall acknowledge
receipt of the confidential communications request and advise the
insured of the status of implementation of the request if an insured
contacts the insurer.

(b) Notwithstanding subdivision (a), a provider of health care
may make arrangements with the insured for the payment of benefit
cost sharing and communicate that arrangement with the insurer.

(c) A health insurer shall not condition coverage on the waiver
of rights provided in this section.

SEC. 98.  

Section 935.8 of the Insurance Code is amended to
read:

935.8.  

(a) Documents, materials, or other information,
including the ORSA Summary Report, in the possession of or
control of the Department of Insurance that are obtained by, created
by, or disclosed to the commissioner or any other person under
this article, are recognized by this state as being proprietary and
contain trade secrets. These documents, materials, or other
information shall be confidential by law and privileged, shall not
be subject to disclosure pursuant to the California Public Records
Act (Chapter 3.5 (commencing with Section 6250) of Division 7
of Title 1 of the Government Code), and shall not be subject to
subpoena or discovery, or admissible in evidence, in any private
civil action. However, the commissioner is authorized to use those
documents, materials, or other information in the furtherance of
any regulatory or legal action brought as a part of the
commissioner’s official duties. The commissioner shall not
otherwise make those documents, materials, or other information
public without the prior written consent of the insurer.

(b) Neither the commissioner nor any other person who received
documents, materials, or other ORSA-related information,
including the ORSA Summary Report, through examination or
otherwise, while acting under the authority of the commissioner,
or with whom those documents, materials, or other information
are shared pursuant to this article, shall be permitted or required
to testify in any private civil action concerning those confidential
documents, materials, or information, subject to subdivision (a).

(c) In order to assist in the performance of the commissioner’s
regulatory duties, the commissioner:

(1) May, upon request, share documents, materials, or other
ORSA-related information, including the confidential and
privileged documents, materials, or information subject to
subdivision (a), including proprietary and trade secret documents
and materials, with other state, federal, and international financial
regulatory agencies, including members of any supervisory college
as described in Section 1215.7, with the NAIC, and with any
third-party consultants designated by the commissioner, provided
that the recipient agrees in writing to maintain the confidentiality
and privileged status of the ORSA-related documents, materials,
or other information and has verified in writing the legal authority
to maintain confidentiality.

(2) May receive documents, materials, or other ORSA-related
information, including otherwise confidential and privileged
documents, materials, or information, including proprietary and
trade secret information or documents, from regulatory officials
of other foreign or domestic jurisdictions, including members of
any supervisory college as described in Section 1215.7, and from
the NAIC, and shall maintain as confidential or privileged any
documents, materials, or information received with notice or the
understanding that it is confidential or privileged under the laws
of the jurisdiction that is the source of the document, material, or
information.

(3) Shall enter into a written agreement with the NAIC or a
third-party consultant governing the sharing and the use of
information provided pursuant to this article, consistent with this
subdivision that shall do all of the following:

(A) Specify procedures and protocols regarding the
confidentiality and security of information shared with the NAIC
or a third-party consultant pursuant to this article, including
procedures and protocols for sharing by the NAIC with other state
regulators from states in which the insurance group has domiciled
insurers. The agreement shall provide that the recipient agrees in
writing to maintain the confidentiality and privileged status of the
ORSA-related documents, materials, or other information and has
verified in writing the legal authority to maintain confidentiality.

(B) Specify that ownership of information shared with the NAIC
or a third-party consultant pursuant to this article remains with the
commissioner and that the NAIC’s or a third-party consultant’s
use of the information is subject to the direction of the
commissioner.

(C) Prohibit the NAIC or third-party consultant from storing
the information shared pursuant to this article in a permanent
database after the underlying analysis is completed.

(D) Require prompt notice to be given to an insurer whose
confidential information in the possession of the NAIC or a
third-party consultant pursuant to this article when that information
is subject to a request or subpoena to the NAIC or a third-party
consultant for disclosure or production.

(E) Require the NAIC or a third-party consultant to consent to
intervention by an insurer in any judicial or administrative action
in which the NAIC or a third-party consultant may be required to
disclose confidential information about the insurer shared with the
NAIC or a third-party consultant pursuant to this article.

(F) In the case of an agreement involving a third-party
consultant, provide for the insurer’s written consent.

(d) The sharing of information and documents by the
commissioner pursuant to this article shall not constitute a
delegation of regulatory authority or rulemaking, and the
commissioner is solely responsible for the administration,
execution, and enforcement of the provisions of this article.

(e)  begin delete No end delete begin insert A end insert waiver of any applicable privilege or claim of
confidentiality in the documents, proprietary and begin delete trade-secret end delete begin insert trade
secret end insert materials, or other ORSA-related information shall begin insert not end insert occur
as a result of disclosure of the ORSA-related information or
documents to the commissioner under this section or as a result of
sharing as authorized in this article.

(f) Documents, materials, or other information in the possession
or control of the NAIC or a third-party consultant pursuant to this
article shall be confidential by law and privileged, shall not be
subject to disclosure pursuant to the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of
Title 1 of the Government Code), and shall not be subject to
subpoena or discovery, or admissible in evidence, in any private
civil action.

SEC. 99.  

Section 1216.1 of the Insurance Code is amended to
read:

1216.1.  

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

(a) “Accredited state” means a state in which the insurance
department or regulatory agency having jurisdiction over the
business of insurance has qualified as meeting the minimum
financial regulatory standards promulgated and established from
time to time by the National Association of Insurance
Commissioners’ (NAIC) Financial Regulation Standards and
Accreditation Program.

(b) “Control” or “controlled” has the meaning ascribed in
Section 1215.

(c) “Controlled insurer” means an admitted insurer which is
controlled, directly or indirectly, by a producer.

(d) “Controlling producer” means a producer who, directly or
indirectly, controls an insurer.

(e) “Admitted insurer” or “insurer” means any person, firm,
association, or corporation admitted to transact any property or
casualty insurance business in this state. The following are not
insurers for the purposes of this article:

(1) All residual market pools and joint underwriting authorities
or associations.

(2) All captive insurers, other than risk retention groups as
defined in the federal Superfund Amendments begin insert and end insert Reauthorization
Act of 1986 (42 U.S.C. Sec. 9671), the federal Liability Risk
Retention Act of 1986 (15 U.S.C. Sec. 3901 et seq.), and the
California Risk Retention Act of 1991 (Chapter 1.5 (commencing
with Section 125) of Part 1). For the purposes of this article, captive
insurers are either insurance companies which are owned by
another organization and whose exclusive purpose is to insure
risks of the parent organization and affiliated companies, or in the
case of groups and associations, insurance organizations which
are owned by the insureds and whose exclusive purpose is to insure
risks of member organizations and group or association members
and their affiliates.

(f) “Producer” means a fire and casualty licensee or licensees
or any other person, firm, association, or corporation, when, for
any compensation, commission, or other thing of value, the person,
firm, association, or corporation acts or aids in any manner in
soliciting, negotiating begin insert , end insert or procuring the making of any insurance
contract on behalf of an insured other than the person, firm,
association, or corporation.

SEC. 100.  

Section 10133.4 of the Insurance Code is amended
to read:

10133.4.  

(a) For purposes of insurers begin delete who end delete begin insert that end insert contract with
providers for alternate rates pursuant to Section 10133, a primary
care provider includes a “nonphysician medical practitioner,”
which is defined as a physician assistant performing services under
the supervision of a primary care physician in compliance with
Chapter 7.7 (commencing with Section 3500) of Division 2 of the
Business and Professions Code or a nurse practitioner performing
services in collaboration with a physician pursuant to Chapter 6
(commencing with Section 2700) of Division 2 of the Business
and Professions Code.

(b) This section shall not require a primary care provider to
accept the assignment of a number of insureds that would exceed
standards of good health care as provided in Section 10133.5.

(c)  begin delete Nothing in this end delete begin insert This end insert section shall begin insert not end insert be interpreted to modify
subdivision (e) of Section 2836.1 of the Business and Professions
Code or subdivision (b) of Section 3516 of the Business and
Professions Code.

SEC. 101.  

Section 10232.8 of the Insurance Code is amended
to read:

10232.8.  

(a) In every long-term care policy or certificate that
is not intended to be a federally qualified long-term care insurance
contract and provides home care benefits, the threshold establishing
eligibility for home care benefits shall be at least as permissive as
a provision that the insured will qualify if either one of two criteria
are met:

(1) Impairment in two out of seven activities of daily living.

(2) Impairment of cognitive ability.

The policy or certificate may provide for lesser but not greater
eligibility criteria. The commissioner, at his or her discretion, may
approve other criteria or combinations of criteria to be substituted,
if the insurer demonstrates that the interest of the insured is better
served.

“Activities of daily living” in every policy or certificate that is
not intended to be a federally qualified long-term care insurance
contract and provides home care benefits shall include eating,
bathing, dressing, ambulating, transferring, toileting, and
continence; “impairment” means that the insured needs human
assistance, or needs continual substantial supervision; and
“impairment of cognitive ability” means deterioration or loss of
intellectual capacity due to organic mental disease, including
Alzheimer’s disease or related illnesses, that requires continual
supervision to protect oneself or others.

(b) In every long-term care policy approved or certificate issued
after the effective date of the act adding this section, that is
intended to be a federally qualified long-term care insurance
contract as described in subdivision (a) of Section 10232.1, the
threshold establishing eligibility for home care benefits shall
provide that a chronically ill insured will qualify if either one of
two criteria are met or if a third criterion, as provided by this
subdivision, is met:

(1) Impairment in two out of six activities of daily living.

(2) Impairment of cognitive ability.

Other criteria shall be used in establishing eligibility for benefits
if federal law or regulations allow other types of disability to be
used applicable to eligibility for benefits under a long-term care
insurance policy. If federal law or regulations allow other types
of disability to be used, the commissioner shall promulgate
emergency regulations to add those other criteria as a third
threshold to establish eligibility for benefits. Insurers shall submit
policies for approval within 60 days of the effective date of the
regulations. With respect to policies previously approved, the
department is authorized to review only the changes made to the
policy. All new policies approved and certificates issued after the
effective date of the regulation shall include the third criterion. begin delete No end delete
begin insert A end insert policy shall begin insert not end insert be sold begin delete that does not include end delete begin insert unless the policy
includes end insert the third criterion after one year beyond the effective date
of the regulations. An insured meeting this third criterion shall be
eligible for benefits regardless of whether the individual meets the
impairment requirements in paragraph (1) or (2) regarding activities
of daily living and cognitive ability.

(c) A licensed health care practitioner, independent of the
insurer, shall certify that the insured meets the definition of
“chronically ill individual” as defined under Public Law 104-191.
For the purposes of long-term care insurance as defined in Section
10231.2, an insurer shall not impose a certification requirement
of longer than 90 days. If a health care practitioner makes a
determination, pursuant to this section, that an insured does not
meet the definition of “chronically ill individual,” the insurer shall
notify the insured that the insured shall be entitled to a second
assessment by a licensed health care practitioner, upon request,
who shall personally examine the insured. The requirement for a
second assessment shall not apply if the initial assessment was
performed by a practitioner who otherwise meets the requirements
of this section and who personally examined the insured. The
assessments conducted pursuant to this section shall be performed
promptly with the certification completed as quickly as possible
to ensure that an insured’s benefits are not delayed. The written
certification shall be renewed every 12 months. A licensed health
care practitioner shall develop a written plan of care after
personally examining the insured. The costs to have a licensed
health care practitioner certify that an insured meets, or continues
to meet, the definition of “chronically ill individual,” or to prepare
written plans of care shall not count against the lifetime maximum
of the policy or certificate. In order to be considered “independent
of the insurer,” a licensed health care practitioner shall not be an
employee of the insurer and shall not be compensated in any
manner that is linked to the outcome of the certification. It is the
intent of this subdivision that the practitioner’s assessments be
unhindered by financial considerations. This subdivision shall
apply only to a policy or certificate intended to be a federally
qualified long-term care insurance contract.

(d) “Activities of daily living” in every policy or certificate
intended to be a federally qualified long-term care insurance
contract as provided by Public Law 104-191 shall include eating,
bathing, dressing, transferring, toileting, and continence;
“impairment in activities of daily living” means the insured needs
“substantial assistance” either in the form of “hands-on assistance”
or “standby assistance,” due to a loss of functional capacity to
perform the activity; “impairment of cognitive ability” means the
insured needs substantial supervision due to severe cognitive
impairment; “licensed health care practitioner” means a physician,
registered nurse, licensed social worker, or other individual whom
the United States Secretary of the Treasury may prescribe by
regulation; and “plan of care” means a written description of the
insured’s needs and a specification of the type, frequency, and
providers of all formal and informal long-term care services
required by the insured, and the cost, if any.

(e) Until the time that these definitions may be superseded by
federal law or regulation, the terms “substantial assistance,”
“hands-on assistance,” “standby assistance,” “severe cognitive
impairment,” and “substantial supervision” shall be defined
according to the safe-harbor definitions contained in Internal
Revenue Service Notice 97-31, issued May 6, 1997.

(f) The definitions of “activities of daily living” to be used in
policies and certificates that are intended to be federally qualified
long-term care insurance shall be the following until the time that
these definitions may be superseded by federal law or regulations:

(1) Eating, which shall mean feeding oneself by getting food in
the body from a receptacle (such as a plate, cup, or table) or by a
feeding tube or intravenously.

(2) Bathing, which shall mean washing oneself by sponge bath
or in either a tub or shower, including the act of getting into or out
of a tub or shower.

(3) Continence, which shall mean the ability to maintain control
of bowel and bladder function; or when unable to maintain control
of bowel or bladder function, the ability to perform associated
personal hygiene (including caring for a catheter or colostomy
bag).

(4) Dressing, which shall mean putting on and taking off all
items of clothing and any necessary braces, fasteners, or artificial
limbs.

(5) Toileting, which shall mean getting to and from the toilet,
getting on or off the toilet, and performing associated personal
hygiene.

(6) Transferring, which shall mean the ability to move into or
out of bed, a chair begin insert , end insert or wheelchair.

The commissioner may approve the use of definitions of
“activities of daily living” that differ from the verbatim definitions
of this subdivision if these definitions would result in more policy
or certificate holders qualifying for long-term care benefits than
would occur by the use of the verbatim definitions of this
subdivision. In addition, the following definitions may be used
without the approval of the commissioner: (1) the verbatim
definitions of eating, bathing, dressing, toileting, transferring, and
continence in subdivision (g); or (2) the verbatim definitions of
eating, bathing, dressing, toileting, and continence in this
subdivision and a substitute, verbatim definition of “transferring”
as follows: “transferring,” which shall mean the ability to move
into and out of a bed, a chair, or wheelchair, or ability to walk or
move around inside or outside the home, regardless of the use of
a cane, crutches, or braces.

The definitions to be used in policies and certificates for
impairment in activities of daily living, “impairment in cognitive
ability,” and any third eligibility criterion adopted by regulation
pursuant to subdivision (b) shall be the verbatim definitions of
these benefit eligibility triggers allowed by federal regulations. In
addition to the verbatim definitions, the commissioner may approve
additional descriptive language to be added to the definitions, if
the additional language is (1) warranted based on federal or state
laws, federal or state regulations, or other relevant federal decision,
and (2) strictly limited to that language that is necessary to ensure
that the definitions required by this section are not misleading to
the insured.

(g) The definitions of “activities of daily living” to be used
verbatim in policies and certificates that are not intended to qualify
for favorable tax treatment under Public Law 104-191 shall be the
following:

(1) Eating, which shall mean reaching for, picking up, and
grasping a utensil and cup; getting food on a utensil, and bringing
food, utensil, and cup to mouth; manipulating food on plate; and
cleaning face and hands as necessary following meals.

(2) Bathing, which shall mean cleaning the body using a tub,
shower, or sponge bath, including getting a basin of water,
managing faucets, getting in and out of tub or shower, and reaching
head and body parts for soaping, rinsing, and drying.

(3) Dressing, which shall mean putting on, taking off, fastening,
and unfastening garments and undergarments and special devices
such as back or leg braces, corsets, elastic stockings or garments,
and artificial limbs or splints.

(4) Toileting, which shall mean getting on and off a toilet or
commode and emptying a commode, managing clothing and wiping
and cleaning the body after toileting, and using and emptying a
bedpan and urinal.

(5) Transferring, which shall mean moving from one sitting or
lying position to another sitting or lying position; for example,
from bed to or from a wheelchair or sofa, coming to a standing
position, or repositioning to promote circulation and prevent skin
breakdown.

(6) Continence, which shall mean the ability to control bowel
and bladder as well as use ostomy or catheter receptacles, and
apply diapers and disposable barrier pads.

(7) Ambulating, which shall mean walking or moving around
inside or outside the home regardless of the use of a cane, crutches,
or braces.

SEC. 102.  

Section 10234.93 of the Insurance Code is amended
to read:

10234.93.  

(a) Every insurer of long-term care in California
shall:

(1) Establish marketing procedures to begin delete assure end delete begin insert ensure end insert that any
comparison of policies by its agents or other producers will be fair
and accurate.

(2) Establish marketing procedures to begin delete assure end delete begin insert ensure end insert excessive
insurance is not sold or issued.

(3) Submit to the commissioner within six months of the
effective date of this act, a list of all agents or other insurer
representatives authorized to solicit individual consumers for the
sale of long-term care insurance. These submissions shall be
updated at least semiannually.

(4) Provide the following training and require that each agent
or other insurer representative authorized to solicit individual
consumers for the sale of long-term care insurance shall
satisfactorily complete the following training requirements that,
for resident licensees, shall count toward the licensee’s continuing
education requirement, but may still result in completing more
than the minimum number of continuing education hours set forth
in this section:

(A) For licensees issued a license after January 1, 1992, eight
hours of training in each of the first four 12-month periods
beginning from the date of original license issuance and thereafter
eight hours of training prior to each license renewal.

(B) For licensees issued a license before January 1, 1992, eight
hours of training prior to each license renewal.

(C) For nonresident licensees that are not otherwise subject to
the continuing education requirements set forth in Section 1749.3,
the evidence of training required by this section shall be filed with
and approved by the commissioner as provided in subdivision (g)
of Section 1749.4.

Licensees shall complete the initial training requirements of this
section prior to being authorized to solicit individual consumers
for the sale of long-term care insurance.

The training required by this section shall consist of topics related
to long-term care services and long-term care insurance, including,
but not limited to, California regulations and requirements,
available long-term care services and facilities, changes or
improvements in services or facilities, and alternatives to the
purchase of private long-term care insurance. On or before July
1, 1998, the following additional training topics shall be required:
differences in eligibility for benefits and tax treatment between
policies intended to be federally qualified and those not intended
to be federally qualified, the effect of inflation in eroding the value
of benefits and the importance of inflation protection, and NAIC
consumer suitability standards and guidelines.

(5) Display prominently on page one of the policy or certificate
and the outline of coverage: “Notice to buyer: This policy may not
cover all of the costs associated with long-term care incurred by
the buyer during the period of coverage. The buyer is advised to
review carefully all policy limitations.”

(6) Inquire and otherwise make every reasonable effort to
identify whether a prospective applicant or enrollee for long-term
care insurance already has accident and sickness or long-term care
insurance and the types and amounts of any such insurance.

(7) Every insurer or entity marketing long-term care insurance
shall establish auditable procedures for verifying compliance with
this subdivision.

(8) Every insurer shall provide to a prospective applicant, at the
time of solicitation, written notice that the Health Insurance
Counseling and Advocacy Program (HICAP) provides health
insurance counseling to senior California residents free of charge.
Every agent shall provide the name, address, and telephone number
of the local HICAP program and the statewide HICAP number,
1-800-434-0222.

(9) Provide a copy of the long-term care insurance shoppers
guide developed by the California Department of Aging to each
prospective applicant prior to the presentation of an application or
enrollment form for insurance.

(10) Clearly post on its Internet Web site and provide written
notice at the time of solicitation that a specimen individual policy
form or group master policy and certificate form for each policy
form offered in this state is available to a prospective applicant
upon request. The individual specimen policy form or group master
policy and certificate form shall be provided to a requesting party
within 15 calendar days of receipt of a request.

(b) In addition to other unfair trade practices, including those
identified in this code, the following acts and practices are
prohibited:

(1) Twisting. Knowingly making any misleading representation,
incomplete, or fraudulent comparison of any insurance policies or
insurers for the purpose of inducing, or tending to induce, any
person to lapse, forfeit, surrender, terminate, retain, pledge, assign,
borrow on, or convert any insurance policy or to take out a policy
of insurance with another insurer.

(2) High pressure tactics. begin delete Employing end delete begin insert Using end insert any method of
marketing having the effect of or tending to induce the purchase
of insurance through force, fright, threat, whether explicit or
implied, or undue pressure to purchase or recommend the purchase
of insurance.

(3) Cold lead advertising. Making use directly or indirectly of
any method of marketing that fails to disclose in a conspicuous
manner that a purpose of the method of marketing is solicitation
of insurance and that contact will be made by an insurance agent
or insurance company.

SEC. 103.  

Section 10753.05 of the Insurance Code is amended
to read:

10753.05.  

(a) No group or individual policy or contract or
certificate of group insurance or statement of group coverage
providing benefits to employees of small employers as defined in
this chapter shall be issued or delivered by a carrier subject to the
jurisdiction of the commissioner regardless of the situs of the
contract or master policyholder or of the domicile of the carrier
nor, except as otherwise provided in Sections 10270.91 and
10270.92, shall a carrier provide coverage subject to this chapter
until a copy of the form of the policy, contract, certificate, or
statement of coverage is filed with and approved by the
commissioner in accordance with Sections 10290 and 10291, and
the carrier has complied with the requirements of Section 10753.17.

(b) (1) On and after October 1, 2013, each carrier shall fairly
and affirmatively offer, market, and sell all of the carrier’s health
benefit plans that are sold to, offered through, or sponsored by,
small employers or associations that include small employers for
plan years on or after January 1, 2014, to all small employers in
each geographic region in which the carrier makes coverage
available or provides benefits.

(2) A carrier that offers qualified health plans through the
Exchange shall be deemed to be in compliance with paragraph (1)
with respect to health benefit plans offered through the Exchange
in those geographic regions in which the carrier offers plans
through the Exchange.

(3) A carrier shall provide enrollment periods consistent with
PPACA and described in Section 155.725 of Title 45 of the Code
of Federal Regulations. Commencing January 1, 2014, a carrier
shall provide special enrollment periods consistent with the special
enrollment periods described in Section 10965.3, to the extent
permitted by PPACA, except for the triggering events identified
in paragraphs (d)(3) and (d)(6) of Section 155.420 of Title 45 of
the Code of Federal Regulations with respect to health benefit
plans offered through the Exchange.

(4)  begin delete Nothing in this end delete begin insert This end insert section shall begin insert not end insert be construed to require
an association, or a trust established and maintained by an
association to receive a master insurance policy issued by an
admitted insurer and to administer the benefits thereof solely for
association members, to offer, market begin insert , end insert or sell a benefit plan design
to those who are not members of the association. However, if the
association markets, offers begin insert , end insert or sells a benefit plan design to those
who are not members of the association it is subject to the
requirements of this section. This shall apply to an association that
otherwise meets the requirements of paragraph (8) formed by
merger of two or more associations after January 1, 1992, if the
predecessor organizations had been in active existence on January
1, 1992, and for at least five years prior to that date and met the
requirements of paragraph (5).

(5) A carrier which (A) effective January 1, 1992, and at least
20 years prior to that date, markets, offers, or sells benefit plan
designs only to all members of one association and (B) does not
market, offer begin insert , end insert or sell any other individual, selected group, or group
policy or contract providing medical, hospital begin insert , end insert and surgical benefits
shall not be required to market, offer, or sell to those who are not
members of the association. However, if the carrier markets, offers begin insert , end insert
or sells any benefit plan design or any other individual, selected
group, or group policy or contract providing medical, hospital begin insert , end insert and
surgical benefits to those who are not members of the association
it is subject to the requirements of this section.

(6) Each carrier that sells health benefit plans to members of
one association pursuant to paragraph (5) shall submit an annual
statement to the commissioner which states that the carrier is selling
health benefit plans pursuant to paragraph (5) and which, for the
one association, lists all the information required by paragraph (7).

(7) Each carrier that sells health benefit plans to members of
any association shall submit an annual statement to the
commissioner which lists each association to which the carrier
sells health benefit plans, the industry or profession which is served
by the association, the association’s membership criteria, a list of
officers, the state in which the association is organized, and the
site of its principal office.

(8) For purposes of paragraphs (4) and (6), an association is a
nonprofit organization comprised of a group of individuals or
employers who associate based solely on participation in a
specified profession or industry, accepting for membership any
individual or small employer meeting its membership criteria,
which do not condition membership directly or indirectly on the
health or claims history of any person, which uses membership
dues solely for and in consideration of the membership and
membership benefits, except that the amount of the dues shall not
depend on whether the member applies for or purchases insurance
offered by the association, which is organized and maintained in
good faith for purposes unrelated to insurance, which has been in
active existence on January 1, 1992, and at least five years prior
to that date, which has a constitution and bylaws, or other
analogous governing documents which provide for election of the
governing board of the association by its members, which has
contracted with one or more carriers to offer one or more health
benefit plans to all individual members and small employer
members in this state. Health coverage through an association that
is not related to employment shall be considered individual
coverage pursuant to Section 144.102(c) of Title 45 of the Code
of Federal Regulations.

(c) On and after October 1, 2013, each carrier shall make
available to each small employer all health benefit plans that the
carrier offers or sells to small employers or to associations that
include small employers for plan years on or after January 1, 2014.
Notwithstanding subdivision begin delete (d) end delete begin insert (c) end insert of Section 10753, for purposes
of this subdivision, companies that are affiliated companies or that
are eligible to file a consolidated income tax return shall be treated
as one carrier.

(d) Each carrier shall do all of the following:

(1) Prepare a brochure that summarizes all of its health benefit
plans and make this summary available to small employers, agents,
and brokers upon request. The summary shall include for each
plan information on benefits provided, a generic description of the
manner in which services are provided, such as how access to
providers is limited, benefit limitations, required copayments and
deductibles, an explanation of how creditable coverage is calculated
if a waiting period is imposed, and a telephone number that can
be called for more detailed benefit information. Carriers are
required to keep the information contained in the brochure accurate
and up to date, and, upon updating the brochure, send copies to
agents and brokers representing the carrier. Any entity that provides
administrative services only with regard to a health benefit plan
written or issued by another carrier shall not be required to prepare
a summary brochure which includes that benefit plan.

(2) For each health benefit plan, prepare a more detailed
evidence of coverage and make it available to small employers,
agents begin insert , end insert and brokers upon request. The evidence of coverage shall
contain all information that a prudent buyer would need to be aware
of in making selections of benefit plan designs. An entity that
provides administrative services only with regard to a health benefit
plan written or issued by another carrier shall not be required to
prepare an evidence of coverage for that health benefit plan.

(3) Provide copies of the current summary brochure to all agents
or brokers who represent the carrier and, upon updating the
brochure, send copies of the updated brochure to agents and brokers
representing the carrier for the purpose of selling health benefit
plans.

(4) Notwithstanding subdivision (c) of Section 10753, for
purposes of this subdivision, companies that are affiliated
companies or that are eligible to file a consolidated income tax
return shall be treated as one carrier.

(e) Every agent or broker representing one or more carriers for
the purpose of selling health benefit plans to small employers shall
do all of the following:

(1) When providing information on a health benefit plan to a
small employer but making no specific recommendations on
particular benefit plan designs:

(A) Advise the small employer of the carrier’s obligation to sell
to any small employer any of the health benefit plans it offers to
small employers, consistent with PPACA, and provide them, upon
request, with the actual rates that would be charged to that
employer for a given health benefit plan.

(B) Notify the small employer that the agent or broker will
procure rate and benefit information for the small employer on
any health benefit plan offered by a carrier for whom the agent or
broker sells health benefit plans.

(C) Notify the small employer that, upon request, the agent or
broker will provide the small employer with the summary brochure
required in paragraph (1) of subdivision (d) for any benefit plan
design offered by a carrier whom the agent or broker represents.

(D) Notify the small employer of the availability of coverage
and the availability of tax credits for certain employers consistent
with PPACA and state law, including any rules, regulations, or
guidance issued in connection therewith.

(2) When recommending a particular benefit plan design or
designs, advise the small employer that, upon request, the agent
will provide the small employer with the brochure required by
paragraph (1) of subdivision (d) containing the benefit plan design
or designs being recommended by the agent or broker.

(3) Prior to filing an application for a small employer for a
particular health benefit plan:

(A) For each of the health benefit plans offered by the carrier
whose health benefit plan the agent or broker is presenting, provide
the small employer with the benefit summary required in paragraph
(1) of subdivision (d) and the premium for that particular employer.

(B) Notify the small employer that, upon request, the agent or
broker will provide the small employer with an evidence of
coverage brochure for each health benefit plan the carrier offers.

(C) Obtain a signed statement from the small employer
acknowledging that the small employer has received the disclosures
required by this paragraph and Section 10753.16.

(f)  begin delete No end delete begin insert A end insert carrier, agent, or broker shall begin insert not end insert induce or otherwise
encourage a small employer to separate or otherwise exclude an
eligible employee from a health benefit plan which, in the case of
an eligible employee meeting the definition in paragraph (1) of
subdivision (f) of Section 10753, is provided in connection with
the employee’s employment or which, in the case of an eligible
employee as defined in paragraph (2) of subdivision (f) of Section
10753, is provided in connection with a guaranteed association.

(g)  begin delete No end delete begin insert A end insert carrier shall begin insert not end insert reject an application from a small
employer for a health benefit plan provided:

(1) The small employer as defined by subparagraph (A) of
paragraph (1) of subdivision (q) of Section 10753 offers health
benefits to 100 percent of its eligible employees as defined in
paragraph (1) of subdivision (f) of Section 10753. Employees who
waive coverage on the grounds that they have other group coverage
shall not be counted as eligible employees.

(2) The small employer agrees to make the required premium
payments.

(h)  begin delete No end delete begin insert A end insert carrier or agent or broker begin delete shall, end delete begin insert shall not, end insert directly or
indirectly, engage in the following activities:

(1) Encourage or direct small employers to refrain from filing
an application for coverage with a carrier because of the health
status, claims experience, industry, occupation, or geographic
location within the carrier’s approved service area of the small
employer or the small employer’s employees.

(2) Encourage or direct small employers to seek coverage from
another carrier because of the health status, claims experience,
industry, occupation, or geographic location within the carrier’s
approved service area of the small employer or the small
employer’s employees.

(3)  begin delete Employ end delete begin insert Use end insert marketing practices or benefit designs that will
have the effect of discouraging the enrollment of individuals with
significant health needs or discriminate based on the individual’s
race, color, national origin, present or predicted disability, age,
sex, gender identity, sexual orientation, expected length of life,
degree of medical dependency, quality of life, or other health
conditions.

This subdivision shall be enforced in the same manner as Section
790.03, including through Sections 790.035 and 790.05.

(i)  begin delete No end delete begin insert A end insert carrier begin delete shall, end delete begin insert shall not, end insert directly or indirectly, enter into
any contract, agreement, or arrangement with an agent or broker
that provides for or results in the compensation paid to an agent
or broker for a health benefit plan to be varied because of the health
status, claims experience, industry, occupation, or geographic
location of the small employer or the small employer’s employees.
This subdivision shall not apply with respect to a compensation
arrangement that provides compensation to an agent or broker on
the basis of percentage of premium, provided that the percentage
shall not vary because of the health status, claims experience,
industry, occupation, or geographic area of the small employer.

(j) (1) A health benefit plan offered to a small employer, as
defined in Section 1304(b) of PPACA and in Section 10753, shall
not establish rules for eligibility, including continued eligibility,
of an individual, or dependent of an individual, to enroll under the
terms of the plan based on any of the following health status-related
factors:

(A) Health status.

(B) Medical condition, including physical and mental illnesses.

(C) Claims experience.

(D) Receipt of health care.

(E) Medical history.

(F) Genetic information.

(G) Evidence of insurability, including conditions arising out
of acts of domestic violence.

(H) Disability.

(I) Any other health status-related factor as determined by any
federal regulations, rules, or guidance issued pursuant to Section
2705 of the federal Public Health Service Act begin insert (42 U.S.C. Sec.
300gg-1) end insert .

(2) Notwithstanding Section 10291.5, a carrier shall not require
an eligible employee or dependent to fill out a health assessment
or medical questionnaire prior to enrollment under a health benefit
plan. A carrier shall not acquire or request information that relates
to a health status-related factor from the applicant or his or her
dependent or any other source prior to enrollment of the individual.

(k) (1) A carrier shall consider as a single risk pool for rating
purposes in the small employer market the claims experience of
all insureds in all nongrandfathered small employer health benefit
plans offered by the carrier in this state, whether offered as health
care service plan contracts or health insurance policies, including
those insureds and enrollees who enroll in coverage through the
Exchange and insureds and enrollees covered by the carrier outside
of the Exchange.

(2) At least each calendar year, and no more frequently than
each calendar quarter, a carrier shall establish an index rate for the
small employer market in the state based on the total combined
claims costs for providing essential health benefits, as defined
pursuant to Section 1302 of PPACA and Section 10112.27, within
the single risk pool required under paragraph (1). The index rate
shall be adjusted on a marketwide basis based on the total expected
marketwide payments and charges under the risk adjustment and
reinsurance programs established for the state pursuant to Sections
1343 and 1341 of PPACA. The premium rate for all of the carrier’s
nongrandfathered health benefit plans shall use the applicable
index rate, as adjusted for total expected marketwide payments
and charges under the risk adjustment and reinsurance programs
established for the state pursuant to Sections 1343 and 1341 of
PPACA, subject only to the adjustments permitted under paragraph
(3).

(3) A carrier may vary premium rates for a particular
nongrandfathered health benefit plan from its index rate based
only on the following actuarially justified plan-specific factors:

(A) The actuarial value and cost-sharing design of the health
benefit plan.

(B) The health benefit plan’s provider network, delivery system
characteristics, and utilization management practices.

(C) The benefits provided under the health benefit plan that are
in addition to the essential health benefits, as defined pursuant to
Section 1302 of PPACA. These additional benefits shall be pooled
with similar benefits within the single risk pool required under
paragraph (1) and the claims experience from those benefits shall
be begin delete utilized end delete begin insert used end insert to determine rate variations for health benefit plans
that offer those benefits in addition to essential health benefits.

(D) Administrative costs, excluding any user fees required by
the Exchange.

(E) With respect to catastrophic plans, as described in subsection
(e) of Section 1302 of PPACA, the expected impact of the specific
eligibility categories for those plans.

(l) If a carrier enters into a contract, agreement, or other
arrangement with a third-party administrator or other entity to
provide administrative, marketing, or other services related to the
offering of health benefit plans to small employers in this state,
the third-party administrator shall be subject to this chapter.

(m) (1) Except as provided in paragraph (2), this section shall
become inoperative if Section 2702 of the federal Public Health
Service Act (42 U.S.C. Sec. 300gg-1), as added by Section 1201
of PPACA, is repealed, in which case, 12 months after the repeal,
carriers subject to this section shall instead be governed by Section
10705 to the extent permitted by federal law, and all references in
this chapter to this section shall instead refer to Section 10705,
except for purposes of paragraph (2).

(2) Paragraph (3) of subdivision (b) of this section shall remain
operative as it relates to health benefit plans offered through the
Exchange.

SEC. 104.  

Section 10961 of the Insurance Code is amended
to read:

10961.  

(a) For purposes of this begin delete article, end delete begin insert chapter, end insert a bridge plan
product shall mean an individual health benefit plan that is offered
by a health insurer licensed under this chapter that contracts with
the Exchange pursuant to Title 22 (commencing with Section
100500) of the Government Code.

(b) On and after begin delete the effective date of this section, end delete begin insert September
30, 2013, end insert if a health insurance policy has not been filed with the
commissioner, a health insurer that contracts with the California
Health Benefit Exchange to offer a qualified bridge plan product
pursuant to Section 100504.5 of the Government Code shall file
the policy form with the commissioner pursuant to Section 10290.

(c) (1) Notwithstanding subdivision (a) of Section 10965.3, a
health insurer selling a bridge plan product shall not be required
to fairly and affirmatively offer, market, and sell the health
insurer’s bridge plan product except to individuals eligible for the
bridge plan product pursuant to the State Department of Health
Care Services and the Medi-Cal managed care plan’s contract
entered into pursuant to Section 14005.70 of the Welfare and
Institutions Code, provided the health care service plan meets the
requirements of subdivision (b) of Section 14005.70 of the Welfare
and Institutions Code.

(2) Notwithstanding subdivision (c) of Section 10965.3, a health
insurer selling a bridge plan product shall provide an initial open
enrollment period of six months, and an annual enrollment period
and a special enrollment period consistent with the annual
enrollment and special enrollment periods of the Exchange.

(d) A health insurer that contracts with the California Health
Benefit Exchange to offer a qualified bridge plan product pursuant
to Section 100504 of the Government Code shall maintain a
medical loss ratio of 85 percent for the bridge plan product. A
health insurer shall begin delete utilize, end delete begin insert use, end insert to the extent possible, the same
methodology for calculating the medical loss ratio for the bridge
plan product that is used for calculating the health insurer’s medical
loss ratio pursuant to Section 10112.25 and shall report its medical
loss ratio for the bridge plan product to the department as provided
in Section 10112.25.

(e) This section shall become inoperative on the October 1 that
is five years after the date that federal approval of the bridge plan
option occurs, and, as of the second January 1 thereafter, is
repealed, unless a later enacted statute that is enacted before that
date deletes or extends the dates on which it becomes inoperative
and is repealed.

SEC. 105.  

Section 10965.11 of the Insurance Code is amended
to read:

10965.11.  

(a) A health insurer shall not be required to offer
an individual health benefit plan or accept applications for the plan
pursuant to Section 10965.3 in the case of any of the following:

(1) To an individual who does not live or reside within the
insurer’s approved service areas.

(2) (A) Within a specific service area or portion of a service
area, if the insurer reasonably anticipates and demonstrates to the
satisfaction of the commissioner both of the following:

(i) It will not have sufficient health care delivery resources to
ensure that health care services will be available and accessible to
the individual because of its obligations to existing insureds.

(ii) It is applying this subparagraph uniformly to all individuals
without regard to the claims experience of those individuals or any
health status-related factor relating to those individuals.

(B) A health insurer that cannot offer an individual health benefit
plan to individuals because it is lacking in sufficient health care
delivery resources within a service area or a portion of a service
area pursuant to subparagraph (A) shall not offer an individual
health benefit plan in that area until the later of the following dates:

(i) The 181st day after the date coverage is denied pursuant to
this paragraph.

(ii) The date the insurer notifies the commissioner that it has
the ability to deliver services to individuals, and certifies to the
commissioner that from the date of the notice it will enroll all
individuals requesting coverage in that area from the insurer.

(C) Subparagraph (B) shall not limit the insurer’s ability to
renew coverage already in force or relieve the insurer of the
responsibility to renew that coverage as described in Section
10273.6.

(D) Coverage offered within a service area after the period
specified in subparagraph (B) shall be subject to this section.

(b) (1) A health insurer may decline to offer an individual health
benefit plan to an individual if the insurer demonstrates to the
satisfaction of the commissioner both of the following:

(A) It does not have the financial reserves necessary to
underwrite additional coverage. In determining whether this
subparagraph has been satisfied, the commissioner shall consider,
but not be limited to, the insurer’s compliance with the
requirements of this part and the rules adopted thereunder.

(B) It is applying this subdivision uniformly to all individuals
without regard to the claims experience of those individuals or any
health status-related factor relating to those individuals.

(2) A health insurer that denies coverage to an individual under
paragraph (1) shall not offer coverage before the later of the
following dates:

(A) The 181st day after the date coverage is denied pursuant to
this subdivision.

(B) The date the insurer demonstrates to the satisfaction of the
commissioner that the insurer has sufficient financial reserves
necessary to underwrite additional coverage.

(3) Paragraph (2) shall not limit the insurer’s ability to renew
coverage already in force or relieve the insurer of the responsibility
to renew that coverage as described in Section 10273.6. begin insert end insert begin insert Coverage
offered within a service area after the period specified in
paragraph (2) shall be subject to this section. end insert

begin delete

(C) Coverage offered within a service area after the period
specified in paragraph (2) shall be subject to this section.

end delete

(c)  begin delete Nothing in this end delete begin insert This end insert chapter shall begin insert not end insert be construed to limit
the commissioner’s authority to develop and implement a plan of
rehabilitation for a health insurer whose financial viability or
organizational and administrative capacity has become impaired,
to the extent permitted by PPACA.

(d) This section shall not apply to an individual health benefit
plan that is a grandfathered plan.

SEC. 106.  

Section 139.2 of the Labor Code is amended to read:

139.2.  

(a) The administrative director shall appoint qualified
medical evaluators in each of the respective specialties as required
for the evaluation of medical-legal issues. The appointments shall
be for two-year terms.

(b) The administrative director shall appoint or reappoint as a
qualified medical evaluator a physician, as defined in Section
3209.3, who is licensed to practice in this state and who
demonstrates that he or she meets the requirements in paragraphs
(1), (2), (6), and (7), and, if the physician is a medical doctor,
doctor of osteopathy, doctor of chiropractic, or a psychologist, that
he or she also meets the applicable requirements in paragraph (3),
(4), or (5).

(1) Prior to his or her appointment as a qualified medical
evaluator, passes an examination written and administered by the
administrative director for the purpose of demonstrating
competence in evaluating medical-legal issues in the workers’
compensation system. Physicians shall not be required to pass an
additional examination as a condition of reappointment. A
physician seeking appointment as a qualified medical evaluator
on or after January 1, 2001, shall also complete prior to
appointment, a course on disability evaluation report writing
approved by the administrative director. The administrative director
shall specify the curriculum to be covered by disability evaluation
report writing courses, which shall include, but is not limited to,
12 or more hours of instruction.

(2) Devotes at least one-third of total practice time to providing
direct medical treatment, or has served as an agreed medical
evaluator on eight or more occasions in the 12 months prior to
applying to be appointed as a qualified medical evaluator.

(3) Is a medical doctor or doctor of osteopathy and meets one
of the following requirements:

(A) Is board certified in a specialty by a board recognized by
the administrative director and either the Medical Board of
California or the Osteopathic Medical Board of California.

(B) Has successfully completed a residency training program
accredited by the begin delete American College of end delete begin insert Accreditation Council for end insert
Graduate Medical Education or the osteopathic equivalent.

(C) Was an active qualified medical evaluator on June 30, 2000.

(D) Has qualifications that the administrative director and either
the Medical Board of California or the Osteopathic Medical Board
of California, as appropriate, both deem to be equivalent to board
certification in a specialty.

(4) Is a doctor of chiropractic and has been certified in California
workers’ compensation evaluation by a provider recognized by
the administrative director. The certification program shall include
instruction on disability evaluation report writing that meets the
standards set forth in paragraph (1).

(5) Is a psychologist and meets one of the following
requirements:

(A) Is board certified in clinical psychology by a board
recognized by the administrative director.

(B) Holds a doctoral degree in psychology, or a doctoral degree
deemed equivalent for licensure by the Board of Psychology
pursuant to Section 2914 of the Business and Professions Code,
from a university or professional school recognized by the
administrative director and has not less than five years’
postdoctoral experience in the diagnosis and treatment of emotional
and mental disorders.

(C) Has not less than five years’ postdoctoral experience in the
diagnosis and treatment of emotional and mental disorders, and
has served as an agreed medical evaluator on eight or more
occasions prior to January 1, 1990.

(6) Does not have a conflict of interest as determined under the
regulations adopted by the administrative director pursuant to
subdivision (o).

(7) Meets any additional medical or professional standards
adopted pursuant to paragraph (6) of subdivision (j).

(c) The administrative director shall adopt standards for
appointment of physicians who are retired or who hold teaching
positions who are exceptionally well qualified to serve as a
qualified medical evaluator even though they do not otherwise
qualify under paragraph (2) of subdivision (b). begin delete In no event shall a end delete
begin insert A end insert physician whose full-time practice is limited to the forensic
evaluation of disability begin insert shall not end insert be appointed as a qualified
medical evaluator under this subdivision.

(d) The qualified medical evaluator, upon request, shall be
reappointed if he or she meets the qualifications of subdivision (b)
and meets all of the following criteria:

(1) Is in compliance with all applicable regulations and
evaluation guidelines adopted by the administrative director.

(2) Has not had more than five of his or her evaluations that
were considered by a workers’ compensation administrative law
judge at a contested hearing rejected by the workers’ compensation
administrative law judge or the appeals board pursuant to this
section during the most recent two-year period during which the
physician served as a qualified medical evaluator. If the workers’
compensation administrative law judge or the appeals board rejects
the qualified medical evaluator’s report on the basis that it fails to
meet the minimum standards for those reports established by the
administrative director or the appeals board, the workers’
compensation administrative law judge or the appeals board, as
the case may be, shall make a specific finding to that effect, and
shall give notice to the medical evaluator and to the administrative
director. Any rejection shall not be counted as one of the five
qualifying rejections until the specific finding has become final
and time for appeal has expired.

(3) Has completed within the previous 24 months at least 12
hours of continuing education in impairment evaluation or workers’
compensation-related medical dispute evaluation approved by the
administrative director.

(4) Has not been terminated, suspended, placed on probation,
or otherwise disciplined by the administrative director during his
or her most recent term as a qualified medical evaluator.

If the evaluator does not meet any one of these criteria, the
administrative director may in his or her discretion reappoint or
deny reappointment according to regulations adopted by the
administrative director. begin delete In no event may a end delete begin insert A end insert physician who does
not currently meet the requirements for initial appointment or who
has been terminated under subdivision (e) because his or her license
has been revoked or terminated by the licensing authority begin insert shall
not end insert be reappointed.

(e) The administrative director may, in his or her discretion,
suspend or terminate a qualified medical evaluator during his or
her term of appointment without a hearing as provided under
subdivision (k) or (l) whenever either of the following conditions
occurs:

(1) The evaluator’s license to practice in California has been
suspended by the relevant licensing authority so as to preclude
practice, or has been revoked or terminated by the licensing
authority.

(2) The evaluator has failed to timely pay the fee required by
the administrative director pursuant to subdivision (n).

(f) The administrative director shall furnish a physician, upon
request, with a written statement of its reasons for termination of,
or for denying appointment or reappointment as, a qualified
medical evaluator. Upon receipt of a specific response to the
statement of reasons, the administrative director shall review his
or her decision not to appoint or reappoint the physician or to
terminate the physician and shall notify the physician of its final
decision within 60 days after receipt of the physician’s response.

(g) The administrative director shall establish agreements with
qualified medical evaluators to begin delete assure end delete begin insert ensure end insert the expeditious
evaluation of cases assigned to them for comprehensive medical
evaluations.

(h) (1) When requested by an employee or employer pursuant
to Section 4062.1, the medical director appointed pursuant to
Section 122 shall assign three-member panels of qualified medical
evaluators within five working days after receiving a request for
a panel. Preference in assigning panels shall be given to cases in
which the employee is not represented. If a panel is not assigned
within 20 working days, the employee shall have the right to obtain
a medical evaluation from any qualified medical evaluator of his
or her choice within a reasonable geographic area. The medical
director shall use a random selection method for assigning panels
of qualified medical evaluators. The medical director shall select
evaluators who are specialists of the type requested by the
employee. The medical director shall advise the employee that he
or she should consult with his or her treating physician prior to
deciding which type of specialist to request.

(2) The administrative director shall promulgate a form that
shall notify the employee of the physicians selected for his or her
panel after a request has been made pursuant to Section 4062.1 or
4062.2. The form shall include, for each physician on the panel,
the physician’s name, address, telephone number, specialty, number
of years in practice, and a brief description of his or her education
and training, and shall advise the employee that he or she is entitled
to receive transportation expenses and temporary disability for
each day necessary for the examination. The form shall also state
in a clear and conspicuous location and type: “You have the right
to consult with an information and assistance officer at no cost to
you prior to selecting the doctor to prepare your evaluation, or you
may consult with an attorney. If your claim eventually goes to
court, the workers’ compensation administrative law judge will
consider the evaluation prepared by the doctor you select to decide
your claim.”

(3) When compiling the list of evaluators from which to select
randomly, the medical director shall include all qualified medical
evaluators who meet all of the following criteria:

(A) He or she does not have a conflict of interest in the case, as
defined by regulations adopted pursuant to subdivision (o).

(B) He or she is certified by the administrative director to
evaluate in an appropriate specialty and at locations within the
general geographic area of the employee’s residence. An evaluator
shall not conduct qualified medical evaluations at more than 10
locations.

(C) He or she has not been suspended or terminated as a
qualified medical evaluator for failure to pay the fee required by
the administrative director pursuant to subdivision (n) or for any
other reason.

(4) When the medical director determines that an employee has
requested an evaluation by a type of specialist that is appropriate
for the employee’s injury, but there are not enough qualified
medical evaluators of that type within the general geographic area
of the employee’s residence to establish a three-member panel,
the medical director shall include sufficient qualified medical
evaluators from other geographic areas and the employer shall pay
all necessary travel costs incurred in the event the employee selects
an evaluator from another geographic area.

(i) The medical director appointed pursuant to Section 122 shall
continuously review the quality of comprehensive medical
evaluations and reports prepared by agreed and qualified medical
evaluators and the timeliness with which evaluation reports are
prepared and submitted. The review shall include, but not be
limited to, a review of a random sample of reports submitted to
the division, and a review of all reports alleged to be inaccurate
or incomplete by a party to a case for which the evaluation was
prepared. The medical director shall submit to the administrative
director an annual report summarizing the results of the continuous
review of medical evaluations and reports prepared by agreed and
qualified medical evaluators and make recommendations for the
improvement of the system of medical evaluations and
determinations.

(j) After public hearing pursuant to Section 5307.3, the
administrative director shall adopt regulations concerning the
following issues:

(1) (A) Standards governing the timeframes within which
medical evaluations shall be prepared and submitted by agreed
and qualified medical evaluators. Except as provided in this
subdivision, the timeframe for initial medical evaluations to be
prepared and submitted shall be no more than 30 days after the
evaluator has seen the employee or otherwise commenced the
medical evaluation procedure. The administrative director shall
develop regulations governing the provision of extensions of the
30-day period in both of the following cases:

(i) When the evaluator has not received test results or consulting
physician’s evaluations in time to meet the 30-day deadline.

(ii) To extend the 30-day period by not more than 15 days when
the failure to meet the 30-day deadline was for good cause.

(B) For purposes of subparagraph (A), “good cause” means any
of the following:

(i) Medical emergencies of the evaluator or evaluator’s family.

(ii) Death in the evaluator’s family.

(iii) Natural disasters or other community catastrophes that
interrupt the operation of the evaluator’s business.

(C) The administrative director shall develop timeframes
governing availability of qualified medical evaluators for
unrepresented employees under Section 4062.1. These timeframes
shall give the employee the right to the addition of a new evaluator
to his or her panel, selected at random, for each evaluator not
available to see the employee within a specified period of time,
but shall also permit the employee to waive this right for a specified
period of time thereafter.

(2) Procedures to be followed by all physicians in evaluating
the existence and extent of permanent impairment and limitations
resulting from an injury in a manner consistent with Sections 4660
and 4660.1.

(3) Procedures governing the determination of any disputed
medical treatment issues in a manner consistent with Section
5307.27.

(4) Procedures to be used in determining the compensability of
psychiatric injury. The procedures shall be in accordance with
Section 3208.3 and shall require that the diagnosis of a mental
disorder be expressed using the terminology and criteria of the
American Psychiatric Association’s Diagnostic and Statistical
Manual of Mental Disorders, Third Edition-Revised, or the
terminology and diagnostic criteria of other psychiatric diagnostic
manuals generally approved and accepted nationally by
practitioners in the field of psychiatric medicine.

(5) Guidelines for the range of time normally required to perform
the following:

(A) A medical-legal evaluation that has not been defined and
valued pursuant to Section 5307.6. The guidelines shall establish
minimum times for patient contact in the conduct of the
evaluations, and shall be consistent with regulations adopted
pursuant to Section 5307.6.

(B) Any treatment procedures that have not been defined and
valued pursuant to Section 5307.1.

(C) Any other evaluation procedure requested by the Insurance
Commissioner, or deemed appropriate by the administrative
director.

(6) Any additional medical or professional standards that a
medical evaluator shall meet as a condition of appointment,
reappointment, or maintenance in the status of a medical evaluator.

(k) Except as provided in this subdivision, the administrative
director may, in his or her discretion, suspend or terminate the
privilege of a physician to serve as a qualified medical evaluator
if the administrative director, after hearing pursuant to subdivision
(l), determines, based on substantial evidence, that a qualified
medical evaluator:

(1) Has violated any material statutory or administrative duty.

(2) Has failed to follow the medical procedures or qualifications
established pursuant to paragraph (2), (3), (4), or (5) of subdivision
(j).

(3) Has failed to comply with the timeframe standards
established pursuant to subdivision (j).

(4) Has failed to meet the requirements of subdivision (b) or
(c).

(5) Has prepared medical-legal evaluations that fail to meet the
minimum standards for those reports established by the
administrative director or the appeals board.

(6) Has made material misrepresentations or false statements
in an application for appointment or reappointment as a qualified
medical evaluator.

begin delete No end delete begin insert A end insert hearing shall begin insert not end insert be required prior to the suspension or
termination of a physician’s privilege to serve as a qualified
medical evaluator when the physician has done either of the
following:

(A) Failed to timely pay the fee required pursuant to subdivision
(n).

(B) Had his or her license to practice in California suspended
by the relevant licensing authority so as to preclude practice, or
had the license revoked or terminated by the licensing authority.

(l) The administrative director shall cite the qualified medical
evaluator for a violation listed in subdivision (k) and shall set a
hearing on the alleged violation within 30 days of service of the
citation on the qualified medical evaluator. In addition to the
authority to terminate or suspend the qualified medical evaluator
upon finding a violation listed in subdivision (k), the administrative
director may, in his or her discretion, place a qualified medical
evaluator on probation subject to appropriate conditions, including
ordering continuing education or training. The administrative
director shall report to the appropriate licensing board the name
of any qualified medical evaluator who is disciplined pursuant to
this subdivision.

(m) The administrative director shall terminate from the list of
medical evaluators any physician where licensure has been
terminated by the relevant licensing board, or who has been
convicted of a misdemeanor or felony related to the conduct of his
or her medical practice, or of a crime of moral turpitude. The
administrative director shall suspend or terminate as a medical
evaluator any physician who has been suspended or placed on
probation by the relevant licensing board. If a physician is
suspended or terminated as a qualified medical evaluator under
this subdivision, a report prepared by the physician that is not
complete, signed, and furnished to one or more of the parties prior
to the date of conviction or action of the licensing board, whichever
is earlier, shall not be admissible in any proceeding before the
appeals board nor shall there be any liability for payment for the
report and any expense incurred by the physician in connection
with the report.

(n)  begin delete Each end delete begin insert A end insert qualified medical evaluator shall pay a fee, as
determined by the administrative director, for appointment or
reappointment. These fees shall be based on a sliding scale as
established by the administrative director. All revenues from fees
paid under this subdivision shall be deposited into the Workers’
Compensation Administration Revolving Fund and are available
for expenditure upon appropriation by the Legislature, and shall
not be used by any other department or agency or for any purpose
other than administration of the programs begin insert of end insert the Division of
Workers’ Compensation related to the provision of medical
treatment to injured employees.

(o) An evaluator begin delete may end delete begin insert shall end insert not request or accept any
compensation or other thing of value from any source that does or
could create a conflict with his or her duties as an evaluator under
this code. The administrative director, after consultation with the
Commission on Health and Safety and Workers’ Compensation,
shall adopt regulations to implement this subdivision.

SEC. 107.  

Section 139.5 of the Labor Code is amended to read:

139.5.  

(a) (1) The administrative director shall contract with
one or more independent medical review organizations and one
or more independent bill review organizations to conduct reviews
pursuant to Article 2 (commencing with Section 4600) of Chapter
2 of Part 2 of Division 4. The independent review organizations
shall be independent of any workers’ compensation insurer or
workers’ compensation claims administrator doing business in this
state. The administrative director may establish additional
requirements, including conflict-of-interest standards, consistent
with the purposes of Article 2 (commencing with Section 4600)
of Chapter 2 of Part 2 of Division 4, that an organization shall be
required to meet in order to qualify as an independent review
organization and to assist the division in carrying out its
responsibilities.

(2) To enable the independent review program to go into effect
for injuries occurring on or after January 1, 2013, and until the
administrative director establishes contracts as otherwise specified
by this section, independent review organizations under contract
with the Department of Managed Health Care pursuant to Section
1374.32 of the Health and Safety Code may be designated by the
administrative director to conduct reviews pursuant to Article 2
(commencing with Section 4600) of Chapter 2 of Part 2 of Division
4. The administrative director may use an interagency agreement
to implement the independent review process beginning January
1, 2013. The administrative director may initially contract directly
with the same organizations that are under contract with the
Department of Managed Health Care on substantially the same
terms without competitive bidding until January 1, 2015.

(b) (1) The independent medical review organizations and the
medical professionals retained to conduct reviews shall be deemed
to be consultants for purposes of this section.

(2) There shall be no monetary liability on the part of, and no
cause of action shall arise against, any consultant on account of
any communication by that consultant to the administrative director
or any other officer, employee, agent, contractor, or consultant of
the Division of Workers’ Compensation, or on account of any
communication by that consultant to any person when that
communication is required by the terms of a contract with the
administrative director pursuant to this section and the consultant
does all of the following:

(A) Acts without malice.

(B) Makes a reasonable effort to determine the facts of the
matter communicated.

(C) Acts with a reasonable belief that the communication is
warranted by the facts actually known to the consultant after a
reasonable effort to determine the facts.

(3) The immunities afforded by this section shall not affect the
availability of any other privilege or immunity which may be
afforded by law. begin delete Nothing in this end delete begin insert This end insert section shall begin insert not end insert be construed
to alter the laws regarding the confidentiality of medical records.

(c) (1) An organization contracted to perform independent
medical review or independent bill review shall be required to
employ a medical director who shall be responsible for advising
the contractor on clinical issues. The medical director shall be a
physician and surgeon licensed by the Medical Board of California
or the begin delete California end delete Osteopathic Medical Board begin insert of California end insert .

(2) The independent review organization, any experts it
designates to conduct a review, or any officer, director, or employee
of the independent review organization shall not have any material
professional, familial, or financial affiliation, as determined by the
administrative director, with any of the following:

(A) The employer, insurer or claims administrator, or utilization
review organization.

(B) Any officer, director, employee of the employer, or insurer
or claims administrator.

(C) A physician, the physician’s medical group, the physician’s
independent practice association, or other provider involved in the
medical treatment in dispute.

(D) The facility or institution at which either the proposed health
care service, or the alternative service, if any, recommended by
the employer, would be provided.

(E) The development or manufacture of the principal drug,
device, procedure, or other therapy proposed by the employee
whose treatment is under review, or the alternative therapy, if any,
recommended by the employer.

(F) The employee or the employee’s immediate family, or the
employee’s attorney.

(d) The independent review organizations shall meet all of the
following requirements:

(1) The organization shall not be an affiliate or a subsidiary of,
nor in any way be owned or controlled by, a workers’ compensation
insurer, claims administrator, or a trade association of workers’
compensation insurers or claims administrators. A board member,
director, officer, or employee of the independent review
organization shall not serve as a board member, director, or
employee of a workers’ compensation insurer or claims
administrator. A board member, director, or officer of a workers’
compensation insurer or claims administrator or a trade association
of workers’ compensation insurers or claims administrators shall
not serve as a board member, director, officer, or employee of an
independent review organization.

(2) The organization shall submit to the division the following
information upon initial application to contract under this section
and, except as otherwise provided, annually thereafter upon any
change to any of the following information:

(A) The names of all stockholders and owners of more than 5
percent of any stock or options, if a publicly held organization.

(B) The names of all holders of bonds or notes in excess of one
hundred thousand dollars ($100,000), if any.

(C) The names of all corporations and organizations that the
independent review organization controls or is affiliated with, and
the nature and extent of any ownership or control, including the
affiliated organization’s type of business.

(D) The names and biographical sketches of all directors,
officers, and executives of the independent review organization,
as well as a statement regarding any past or present relationships
the directors, officers, and executives may have with any employer,
workers’ compensation insurer, claims administrator, medical
provider network, managed care organization, provider group, or
board or committee of an employer, workers’ compensation insurer,
claims administrator, medical provider network, managed care
organization, or provider group.

(E) (i) The percentage of revenue the independent review
organization receives from expert reviews, including, but not
limited to, external medical reviews, quality assurance reviews,
utilization reviews, and bill reviews.

(ii) The names of any workers’ compensation insurer, claims
administrator, or provider group for which the independent review
organization provides review services, including, but not limited
to, utilization review, bill review, quality assurance review, and
external medical review. Any change in this information shall be
reported to the department within five business days of the change.

(F) A description of the review process, including, but not
limited to, the method of selecting expert reviewers and matching
the expert reviewers to specific cases.

(G) A description of the system the independent medical review
organization uses to identify and recruit medical professionals to
review treatment and treatment recommendation decisions, the
number of medical professionals credentialed, and the types of
cases and areas of expertise that the medical professionals are
credentialed to review.

(H) A description of how the independent review organization
ensures compliance with the conflict-of-interest requirements of
this section.

(3) The organization shall demonstrate that it has a quality
assurance mechanism in place that does all of the following:

(A) Ensures that any medical professionals retained are
appropriately credentialed and privileged.

(B) Ensures that the reviews provided by the medical
professionals or bill reviewers are timely, clear, and credible, and
that reviews are monitored for quality on an ongoing basis.

(C) Ensures that the method of selecting medical professionals
for individual cases achieves a fair and impartial panel of medical
professionals who are qualified to render recommendations
regarding the clinical conditions and the medical necessity of
treatments or therapies in question.

(D) Ensures the confidentiality of medical records and the
review materials, consistent with the requirements of this section
and applicable state and federal law.

(E) Ensures the independence of the medical professionals or
bill reviewers retained to perform the reviews through
conflict-of-interest policies and prohibitions, and ensures adequate
screening for conflicts of interest, pursuant to paragraph (5).

(4) Medical professionals selected by independent medical
review organizations to review medical treatment decisions shall
be licensed physicians, as defined by Section 3209.3, in good
standing, who meet the following minimum requirements:

(A) The physician shall be a clinician knowledgeable in the
treatment of the employee’s medical condition, knowledgeable
about the proposed treatment, and familiar with guidelines and
protocols in the area of treatment under review.

(B) Notwithstanding any other begin delete provision of end delete law, the physician
shall hold a nonrestricted license in any state of the United States,
and for physicians and surgeons holding an M.D. or D.O. degree,
a current certification by a recognized American medical specialty
board in the area or areas appropriate to the condition or treatment
under review. The independent medical review organization shall
give preference to the use of a physician licensed in California as
the reviewer.

(C) The physician shall have no history of disciplinary action
or sanctions, including, but not limited to, loss of staff privileges
or participation restrictions, taken or pending by any hospital,
government, or regulatory body.

(D) Commencing January 1, 2014, the physician shall not hold
an appointment as a qualified medical evaluator pursuant to Section
139.2.

(5) Neither the expert reviewer, nor the independent review
organization, shall have any material professional, material familial,
or material financial affiliation with any of the following:

(A) The employer, workers’ compensation insurer or claims
administrator, or a medical provider network of the insurer or
claims administrator, except that an academic medical center under
contract to the insurer or claims administrator to provide services
to employees may qualify as an independent medical review
organization provided it will not provide the service and provided
the center is not the developer or manufacturer of the proposed
treatment.

(B) Any officer, director, or management employee of the
employer or workers’ compensation insurer or claims administrator.

(C) The physician, the physician’s medical group, or the
independent practice association begin delete (IPA) end delete proposing the treatment.

(D) The institution at which the treatment would be provided.

(E) The development or manufacture of the treatment proposed
for the employee whose condition is under review.

(F) The employee or the employee’s immediate family.

(6) For purposes of this subdivision, the following terms shall
have the following meanings:

(A) “Material familial affiliation” means any relationship as a
spouse, child, parent, sibling, spouse’s parent, or child’s spouse.

(B) “Material financial affiliation” means any financial interest
of more than 5 percent of total annual revenue or total annual
income of an independent review organization or individual to
which this subdivision applies. “Material financial affiliation” does
not include payment by the employer to the independent review
organization for the services required by the administrative
director’s contract with the independent review organization, nor
does “material financial affiliation” include an expert’s
participation as a contracting medical provider where the expert
is affiliated with an academic medical center or a National Cancer
Institute-designated clinical cancer research center.

(C) “Material professional affiliation” means any
physician-patient relationship, any partnership or employment
relationship, a shareholder or similar ownership interest in a
professional corporation, or any independent contractor
arrangement that constitutes a material financial affiliation with
any expert or any officer or director of the independent review
organization. “Material professional affiliation” does not include
affiliations that are limited to staff privileges at a health facility.

(e) The division shall provide, upon the request of any interested
person, a copy of all nonproprietary information, as determined
by the administrative director, filed with it by an independent
review organization under contract pursuant to this section. The
division may charge a fee to the interested person for copying the
requested information.

(f) The Legislature finds and declares that the services described
in this section are of such a special and unique nature that they
must be contracted out pursuant to paragraph (3) of subdivision
(b) of Section 19130 of the Government Code. The Legislature
further finds and declares that the services described in this section
are a new state function pursuant to paragraph (2) of subdivision
(b) of Section 19130 of the Government Code.

SEC. 108.  

Section 230.4 of the Labor Code is amended to read:

230.4.  

(a) An employee who performs duty as a volunteer
firefighter, a reserve peace officer, or as emergency rescue
personnel, as defined in Section 230.3, and who works for an
employer employing 50 or more employees, shall be permitted to
take temporary leaves of absence, not to exceed an aggregate of
14 days per calendar year, for the purpose of engaging in fire, law
enforcement, or emergency rescue training.

(b) An employee who works for an employer employing 50 or
more employees who is discharged, threatened with discharge,
demoted, suspended, or in any other manner discriminated against
in the terms and conditions of employment by his or her employer
because the employee has taken time off to engage in fire, law
enforcement, or emergency rescue training as provided in
subdivision (a), is entitled to reinstatement and reimbursement for
lost wages and work benefits caused by the acts of the employer.

(c) An employee seeking reinstatement and reimbursement
pursuant to this section may file a complaint with the Division of
Labor Standards Enforcement in accordance with Section begin delete 98.7,
and end delete begin insert 98.7 and, end insert upon receipt of this type of complaint, the Labor
Commissioner shall proceed as provided in that section.

SEC. 109.  

Section 1773.1 of the Labor Code is amended to
read:

1773.1.  

(a) Per diem wages, as the term is used in this chapter
or in any other statute applicable to public works, includes
employer payments for the following:

(1) Health and welfare.

(2) Pension.

(3) Vacation.

(4) Travel.

(5) Subsistence.

(6) Apprenticeship or other training programs authorized by
Section 3093, to the extent that the cost of training is reasonably
related to the amount of the contributions.

(7) Worker protection and assistance programs or committees
established under the federal Labor Management Cooperation Act
of 1978 begin delete (Section 175a of Title 29 of the United States Code), end delete begin insert (29
U.S.C. Sec. 175a), end insert to the extent that the activities of the programs
or committees are directed to the monitoring and enforcement of
laws related to public works.

(8) Industry advancement and collective bargaining agreements
administrative fees, provided that these payments are required
under a collective bargaining agreement pertaining to the particular
craft, classification, or type of work within the locality or the
nearest labor market area at issue.

(9) Other purposes similar to those specified in paragraphs (1)
to (8), inclusive.

(b) Employer payments include all of the following:

(1) The rate of contribution irrevocably made by the employer
to a trustee or third person pursuant to a plan, fund, or program.

(2) The rate of actual costs to the employer reasonably
anticipated in providing benefits to workers pursuant to an
enforceable commitment to carry out a financially responsible plan
or program communicated in writing to the workers affected.

(3) Payments to the California Apprenticeship Council pursuant
to Section 1777.5.

(c) Employer payments are a credit against the obligation to
pay the general prevailing rate of per diem wages. However, credit
shall not be granted for benefits required to be provided by other
state or federal law, or for payments made to monitor and enforce
laws related to public works if those payments are not made to a
program or committee established under the federal Labor
Management Cooperation Act of 1978 begin delete (Section 175a of Title 29
of the United States Code) end delete begin insert (29 U.S.C. Sec. 175a) end insert . Credits for
employer payments also shall not reduce the obligation to pay the
hourly straight time or overtime wages found to be prevailing.
However, an increased employer payment contribution that results
in a lower hourly straight time or overtime wage shall not be
considered a violation of the applicable prevailing wage
determination if all of begin insert the end insert following conditions are met:

(1) The increased employer payment is made pursuant to criteria
set forth in a collective bargaining agreement.

(2) The basic hourly rate and increased employer payment are
no less than the general prevailing rate of per diem wages and the
general prevailing rate for holiday and overtime work in the
director’s general prevailing wage determination.

(3) The employer payment contribution is irrevocable unless
made in error.

(d) An employer may take credit for an employer payment
specified in subdivision (b), even if contributions are not made,
or costs are not paid, during the same pay period for which credit
is taken, if the employer regularly makes the contributions, or
regularly pays the costs, for the plan, fund, or program on no less
than a quarterly basis.

(e) The credit for employer payments shall be computed on an
annualized basis when the employer seeks credit for employer
payments that are higher for public works projects than for private
construction performed by the same employer, unless one or more
of the following occur:

(1) The employer has an enforceable obligation to make the
higher rate of payments on future private construction performed
by the employer.

(2) The higher rate of payments is required by a project labor
agreement.

(3) The payments are made to the California Apprenticeship
Council pursuant to Section 1777.5.

(4) The director determines that annualization would not serve
the purposes of this chapter.

(f) (1) For the purpose of determining those per diem wages
for contracts, the representative of any craft, classification, or type
of worker needed to execute contracts shall file with the
Department of Industrial Relations fully executed copies of the
collective bargaining agreements for the particular craft,
classification, or type of work involved. The collective bargaining
agreements shall be filed after their execution and thereafter may
be taken into consideration pursuant to Section 1773 whenever
begin insert they are end insert filed 30 days prior to the call for bids. If the collective
bargaining agreement has not been formalized, a typescript of the
final draft may be filed temporarily, accompanied by a statement
under penalty of perjury as to its effective date.

(2) When a copy of the collective bargaining agreement has
previously been filed, fully executed copies of all modifications
and extensions of the agreement that affect per diem wages or
holidays shall be filed.

(3) The failure to comply with filing requirements of this
subdivision shall not be grounds for setting aside a prevailing wage
determination if the information taken into consideration is correct.

SEC. 110.  

Section 2055 of the Labor Code is amended to read:

2055.  

The commissioner begin delete may end delete begin insert shall end insert not permit any employer
to register, begin delete nor may the commissioner permit any employer end delete begin insert or end insert to
renew registration begin insert , end insert until all of the following conditions are satisfied:

(a) The employer has applied for registration to the
commissioner by presenting proof of compliance with the local
government’s business licensing or regional regulatory
requirements.

(b) The employer has obtained a surety bond issued by a surety
company admitted to do business in this state. The principal sum
of the bond shall begin insert not end insert be begin delete not end delete less than one hundred fifty thousand
dollars ($150,000). The employer shall file a copy of the bond
with the commissioner.

(1) The bond required by this section shall be in favor of, and
payable to begin insert , end insert the people of the State of California begin insert , end insert and shall be for
the benefit of any employee damaged by his or her employer’s
failure to pay wages, interest on wages, or fringe benefits, or
damaged by violation of Section 351 or 353.

(2) Thirty days prior to the cancellation or termination of any
surety bond required by this section, the surety shall send written
notice to both the employer and the commissioner, identifying the
bond and the date of the cancellation or termination.

(3) An employer begin delete may end delete begin insert shall end insert not conduct any business until the
employer obtains a new surety bond and files a copy of it with the
commissioner.

(4) This subdivision shall not apply to an employer covered by
a valid collective bargaining agreement, if the agreement expressly
provides for all of the following:

(A) Wages.

(B) Hours of work.

(C) Working conditions.

(D) An expeditious process to resolve disputes concerning
nonpayment of wages.

(c) The employer has documented that a current workers’
compensation insurance policy is in effect for the employees.

(d) The employer has paid the fees established pursuant to
Section 2059.

SEC. 111.  

Section 4600 of the Labor Code is amended to read:

4600.  

(a) Medical, surgical, chiropractic, acupuncture, and
hospital treatment, including nursing, medicines, medical and
surgical supplies, crutches, and apparatuses, including orthotic and
prosthetic devices and services, that is reasonably required to cure
or relieve the injured worker from the effects of his or her injury
shall be provided by the employer. In the case of his or her neglect
or refusal reasonably to do so, the employer is liable for the
reasonable expense incurred by or on behalf of the employee in
providing treatment.

(b) As used in this division and notwithstanding any other law,
medical treatment that is reasonably required to cure or relieve the
injured worker from the effects of his or her injury means treatment
that is based upon the guidelines adopted by the administrative
director pursuant to Section 5307.27.

(c) Unless the employer or the employer’s insurer has
established or contracted with a medical provider network as
provided for in Section 4616, after 30 days from the date the injury
is reported, the employee may be treated by a physician of his or
her own choice or at a facility of his or her own choice within a
reasonable geographic area. A chiropractor shall not be a treating
physician after the employee has received the maximum number
of chiropractic visits allowed by subdivision (c) of Section 4604.5.

(d) (1) If an employee has notified his or her employer in
writing prior to the date of injury that he or she has a personal
physician, the employee shall have the right to be treated by that
physician from the date of injury if the employee has health care
coverage for nonoccupational injuries or illnesses on the date of
injury in a plan, policy, or fund as described in subdivisions (b),
(c), and (d) of Section 4616.7.

(2) For purposes of paragraph (1), a personal physician shall
meet all of the following conditions:

(A) Be the employee’s regular physician and surgeon, licensed
pursuant to Chapter 5 (commencing with Section 2000) of Division
2 of the Business and Professions Code.

(B) Be the employee’s primary care physician and has
previously directed the medical treatment of the employee, and
who retains the employee’s medical records, including his or her
medical history. “Personal physician” includes a medical group,
if the medical group is a single corporation or partnership
composed of licensed doctors of medicine or osteopathy, which
operates an integrated multispecialty medical group providing
comprehensive medical services predominantly for
nonoccupational illnesses and injuries.

(C) The physician agrees to be predesignated.

(3) If the employee has health care coverage for nonoccupational
injuries or illnesses on the date of injury in a health care service
plan licensed pursuant to Chapter 2.2 (commencing with Section
1340) of Division 2 of the Health and Safety Code, and the
employer is notified pursuant to paragraph (1), all medical
treatment, utilization review of medical treatment, access to
medical treatment, and other medical treatment issues shall be
governed by Chapter 2.2 (commencing with Section 1340) of
Division 2 of the Health and Safety Code. Disputes regarding the
provision of medical treatment shall be resolved pursuant to Article
5.55 (commencing with Section 1374.30) of Chapter 2.2 of
Division 2 of the Health and Safety Code.

(4) If the employee has health care coverage for nonoccupational
injuries or illnesses on the date of injury in a group health insurance
policy as described in Section 4616.7, all medical treatment,
utilization review of medical treatment, access to medical
treatment, and other medical treatment issues shall be governed
by the applicable provisions of the Insurance Code.

(5) The insurer may require prior authorization of any
nonemergency treatment or diagnostic service and may conduct
reasonably necessary utilization review pursuant to Section 4610.

(6) An employee shall be entitled to all medically appropriate
referrals by the personal physician to other physicians or medical
providers within the nonoccupational health care plan. An
employee shall be entitled to treatment by physicians or other
medical providers outside of the nonoccupational health care plan
pursuant to standards established in Article 5 (commencing with
Section 1367) of Chapter 2.2 of Division 2 of the Health and Safety
Code.

(e) (1) When at the request of the employer, the employer’s
insurer, the administrative director, the appeals board, or a workers’
compensation administrative law judge, the employee submits to
examination by a physician, he or she shall be entitled to receive,
in addition to all other benefits herein provided, all reasonable
expenses of transportation, meals, and lodging incident to reporting
for the examination, together with one day of temporary disability
indemnity for each day of wages lost in submitting to the
examination.

(2) Regardless of the date of injury, “reasonable expenses of
transportation” includes mileage fees from the employee’s home
to the place of the examination and back at the rate of twenty-one
cents ($0.21) a mile or the mileage rate adopted by the Director
of Human Resources pursuant to Section 19820 of the Government
Code, whichever is higher, plus any bridge tolls. The mileage and
tolls shall be paid to the employee at the time he or she is given
notification of the time and place of the examination.

(f) When at the request of the employer, the employer’s insurer,
the administrative director, the appeals board, or a workers’
compensation administrative law judge, an employee submits to
examination by a physician and the employee does not proficiently
speak or understand the English language, he or she shall be
entitled to the services of a qualified interpreter in accordance with
conditions and a fee schedule prescribed by the administrative
director. These services shall be provided by the employer. For
purposes of this section, “qualified interpreter” means a language
interpreter certified, or deemed certified, pursuant to Article 8
(commencing with Section 11435.05) of Chapter 4.5 of Part 1 of
Division 3 of Title 2 of, or Section 68566 of, the Government
Code.

(g) If the injured employee cannot effectively communicate
with his or her treating physician because he or she cannot
proficiently speak or understand the English language, the injured
employee is entitled to the services of a qualified interpreter during
medical treatment appointments. To be a qualified interpreter for
purposes of medical treatment appointments, an interpreter is not
required to meet the requirements of subdivision (f), but
commencing March 1, 2014, shall meet any requirements
established by rule by the administrative director that are
substantially similar to the requirements set forth in Section
1367.04 of the Health and Safety Code, notwithstanding any other
effective date established in regulations. The administrative director
shall adopt a fee schedule for qualified interpreter fees in
accordance with this section. Upon request of the injured employee,
the employer or insurance carrier shall pay for interpreter services.
An employer shall not be required to pay for the services of an
interpreter who is not certified or is provisionally certified by the
person conducting the medical treatment or examination unless
either the employer consents in advance to the selection of the
individual who provides the interpreting service or the injured
worker requires interpreting service in a language other than the
languages designated pursuant to Section 11435.40 of the
Government Code.

(h) Home health care services shall be provided as medical
treatment only if reasonably required to cure or relieve the injured
employee from the effects of his or her injury and prescribed by
a physician and surgeon licensed pursuant to Chapter 5
(commencing with Section 2000) of Division 2 of the Business
and Professions Code, and subject to Section 5307.1 or begin delete 5703.8 end delete
begin insert 5307.8 end insert . The employer shall not be liable for home health care
services that are provided more than 14 days prior to the date of
the employer’s receipt of the physician’s prescription.

SEC. 112.  

Section 5502 of the Labor Code is amended to read:

5502.  

(a) Except as provided in subdivisions (b) and (d), the
hearing shall be held not less than 10 days, and not more than 60
days, after the date a declaration of readiness to proceed, on a form
prescribed by the appeals board, is filed. If a claim form has been
filed for an injury occurring on or after January 1, 1990, and before
January 1, 1994, an application for adjudication shall accompany
the declaration of readiness to proceed.

(b) The administrative director shall establish a priority calendar
for issues requiring an expedited hearing and decision. A hearing
shall be held and a determination as to the rights of the parties
shall be made and filed within 30 days after the declaration of
readiness to proceed is filed if the issues in dispute are any of the
following, provided that if an expedited hearing is requested, no
other issue may be heard until the medical provider network dispute
is resolved:

(1) The employee’s entitlement to medical treatment pursuant
to Section 4600, except for treatment issues determined pursuant
to Sections 4610 and 4610.5.

(2) Whether the injured employee is required to obtain treatment
within a medical provider network.

(3) A medical treatment appointment or medical-legal
examination.

(4) The employee’s entitlement to, or the amount of, temporary
disability indemnity payments.

(5) The employee’s entitlement to compensation from one or
more responsible employers when two or more employers dispute
liability as among themselves.

(6) Any other issues requiring an expedited hearing and
determination as prescribed in rules and regulations of the
administrative director.

(c) The administrative director shall establish a priority
conference calendar for cases in which the employee is represented
by an attorney and the issues in dispute are employment or injury
arising out of employment or in the course of employment. The
conference shall be conducted by a workers’ compensation
administrative law judge within 30 days after the declaration of
readiness to proceed. If the dispute cannot be resolved at the
conference, a trial shall be set as expeditiously as possible, unless
good cause is shown why discovery is not complete, in which case
status conferences shall be held at regular intervals. The case shall
be set for trial when discovery is complete, or when the workers’
compensation administrative law judge determines that the parties
have had sufficient time in which to complete reasonable discovery.
A determination as to the rights of the parties shall be made and
filed within 30 days after the trial.

(d) (1) In all cases, a mandatory settlement conference, except
a lien conference or a mandatory settlement lien conference, shall
be conducted not less than 10 days, and not more than 30 days,
after the filing of a declaration of readiness to proceed. If the
dispute is not resolved, the regular hearing, except a lien trial, shall
be held within 75 days after the declaration of readiness to proceed
is filed.

(2) The settlement conference shall be conducted by a workers’
compensation administrative law judge or by a referee who is
eligible to be a workers’ compensation administrative law judge
or eligible to be an arbitrator under Section 5270.5. At the
mandatory settlement conference, the referee or workers’
compensation administrative law judge shall have the authority to
resolve the dispute, including the authority to approve a
compromise and release or issue a stipulated finding and award,
and if the dispute cannot be resolved, to frame the issues and
stipulations for trial. The appeals board shall adopt any regulations
needed to implement this subdivision. The presiding workers’
compensation administrative law judge shall supervise settlement
conference referees in the performance of their judicial functions
under this subdivision.

(3) If the claim is not resolved at the mandatory settlement
conference, the parties shall file a pretrial conference statement
noting the specific issues in dispute, each party’s proposed
permanent disability rating, and listing the exhibits, and disclosing
witnesses. Discovery shall close on the date of the mandatory
settlement conference. Evidence not disclosed or obtained
thereafter shall not be admissible unless the proponent of the
evidence can demonstrate that it was not available or could not
have been discovered by the exercise of due diligence prior to the
settlement conference.

(e) In cases involving the Director of Industrial Relations in his
or her capacity as administrator of the Uninsured Employers
begin insert Benefits Trust end insert Fund, this section shall not apply unless proof of
service, as specified in paragraph (1) of subdivision (d) of Section
3716, has been filed with the appeals board and provided to the
Director of Industrial Relations, valid jurisdiction has been
established over the employer, and the fund has been joined.

(f) Except as provided in subdivision begin delete (a) and in Section 4065, end delete
begin insert (a), end insert the provisions of this section shall apply irrespective of the
date of injury.

SEC. 113.  

Section 935 of the Military and Veterans Code is
amended to read:

935.  

begin delete (a) end delete begin delete   end delete The governing board of any county may grant financial
assistance, relief, and support to a disabled veteran, as defined in
Section 999.

SEC. 114.  

Section 952 of the Military and Veterans Code is
amended to read:

952.  

(a) A cemetery corporation or association, or other entity
in possession of the cremated remains of a veteran or dependent
of a veteran, shall, upon request of a veterans’ remains organization
and after verifying the status of the veterans’ remains organization
as an organization currently authorized by the United States
Department of Veterans Affairs and the National Personnel Records
Center or as an organization authorized by the local county board
of supervisors to verify and inter unclaimed cremated remains of
American veterans, release veteran status information to the
veterans’ remains organization.

(b) The use or disclosure of veteran status information obtained
by a veterans’ remains organization pursuant to subdivision (a)
shall be permitted only for the purpose of verifying veteran
interment benefits of the deceased veteran or a dependent of a
veteran with the California Department of Veterans Affairs and
shall not be used or disclosed for any other purpose.

(c) The cemetery authority, cemetery corporation or association,
or other entity in possession of the cremated remains of a veteran
or dependent of a veteran may, upon request of a veterans’ remains
organization and after verifying the status of the veterans’ remains
organization as an organization currently authorized by the United
States Department of Veterans Affairs and the National Personnel
Records Center or as an organization authorized by the local county
board of supervisors to verify and inter unclaimed cremated
remains of American veterans, release the cremated remains of
the veteran or dependent of a veteran to a veterans’ remains
organization for the sole purpose of interment, subject to Section
943 begin insert of this code end insert and Sections 7110 and 7208 of the Health and
Safety Code, when all of the following conditions have been met:

(1) The veterans’ remains organization has verified the interment
benefits of the deceased veteran or dependent of a veteran with
the California Department of Veterans Affairs and provided
documentation of the verification to the cemetery authority,
cemetery corporation or association, or other entity that the
decedent is a veteran or a dependent of a veteran eligible for burial
in a national or state cemetery.

(2) The veterans’ remains organization has made a reasonable
effort to locate the agent or family member who has the right to
control the cremated remains of the veteran or dependent of a
veteran.

(3) The veterans’ remains organization has provided notice to
all known agents or family members who have the right to control
the cremated remains of the veteran or dependent of a veteran of
the veteran’s remains organization’s intent to claim the cremated
remains of the veteran or dependent of a veteran for the purpose
of providing a proper burial of the cremated remains of the veteran
or dependent of a veteran in accordance with Section 943 begin insert of this
code end insert and Sections 7110 and 7208 of the Health and Safety Code.

(4) An agent or family member who has the right to control the
cremated remains of the veteran or dependent of a veteran has
made no attempt to claim the cremated remains.

(5) The cremated remains have been in the possession of the
cemetery authority, cemetery corporation or association, or other
entity for a period of at least one year.

(d) The cemetery authority, cemetery corporation or association,
or other entity that releases veteran status information or cremated
remains of the veteran or dependent of a veteran pursuant to this
section shall not be subject to civil liability, except for gross
negligence, if all of the conditions of this section are met.

SEC. 115.  

Section 136.2 of the Penal Code, as amended by
Section 1.5 of Chapter 291 of the Statutes of 2013, is amended to
read:

136.2.  

(a) Upon a good cause belief that harm to, or
intimidation or dissuasion of, a victim or witness has occurred or
is reasonably likely to occur, a court with jurisdiction over a
criminal matter may issue orders, including, but not limited to, the
following:

(1) An order issued pursuant to Section 6320 of the Family
Code.

(2) An order that a defendant shall not violate any provision of
Section 136.1.

(3) An order that a person before the court other than a
defendant, including, but not limited to, a subpoenaed witness or
other person entering the courtroom of the court, shall not violate
any provisions of Section 136.1.

(4) An order that a person described in this section shall have
no communication whatsoever with a specified witness or a victim,
except through an attorney under reasonable restrictions that the
court may impose.

(5) An order calling for a hearing to determine if an order as
described in paragraphs (1) to (4), inclusive, should be issued.

(6) (A) An order that a particular law enforcement agency
within the jurisdiction of the court provide protection for a victim
or a witness, or both, or for immediate family members of a victim
or a witness who reside in the same household as the victim or
witness or within reasonable proximity of the victim’s or witness’
household, as determined by the court. The order shall not be made
without the consent of the law enforcement agency except for
limited and specified periods of time and upon an express finding
by the court of a clear and present danger of harm to the victim or
witness or immediate family members of the victim or witness.

(B) For purposes of this paragraph, “immediate family
members” include the spouse, children, or parents of the victim
or witness.

(7) (A) An order protecting victims of violent crime from all
contact by the defendant, or contact, with the intent to annoy,
harass, threaten, or commit acts of violence, by the defendant. The
court or its designee shall transmit orders made under this
paragraph to law enforcement personnel within one business day
of the issuance, modification, extension, or termination of the
order, pursuant to subdivision (a) of Section 6380 of the Family
Code. It is the responsibility of the court to transmit the
modification, extension, or termination orders made under this
paragraph to the same agency that entered the original protective
order into the Domestic Violence Restraining Order System.

(B) (i) If a court does not issue an order pursuant to
subparagraph (A) in a case in which the defendant is charged with
a crime of domestic violence as defined in Section 13700, the court
on its own motion shall consider issuing a protective order upon
a good cause belief that harm to, or intimidation or dissuasion of,
a victim or witness has occurred or is reasonably likely to occur,
that provides as follows:

(I) The defendant shall not own, possess, purchase, receive, or
attempt to purchase or receive, a firearm while the protective order
is in effect.

(II) The defendant shall relinquish any firearms that he or she
owns or possesses pursuant to Section 527.9 of the Code of Civil
Procedure.

(ii) Every person who owns, possesses, purchases, or receives,
or attempts to purchase or receive, a firearm while this protective
order is in effect is punishable pursuant to Section 29825.

(C) An order issued, modified, extended, or terminated by a
court pursuant to this paragraph shall be issued on forms adopted
by the Judicial Council of California and that have been approved
by the Department of Justice pursuant to subdivision (i) of Section
6380 of the Family Code. However, the fact that an order issued
by a court pursuant to this section was not issued on forms adopted
by the Judicial Council and approved by the Department of Justice
shall not, in and of itself, make the order unenforceable.

(D) A protective order issued under this paragraph may require
the defendant to be placed on electronic monitoring if the local
government, with the concurrence of the county sheriff or the chief
probation officer with jurisdiction, adopts a policy to authorize
electronic monitoring of defendants and specifies the agency with
jurisdiction for this purpose. If the court determines that the
defendant has the ability to pay for the monitoring program, the
court shall order the defendant to pay for the monitoring. If the
court determines that the defendant does not have the ability to
pay for the electronic monitoring, the court may order electronic
monitoring to be paid for by the local government that adopted
the policy to authorize electronic monitoring. The duration of
electronic monitoring shall not exceed one year from the date the
order is issued. At no time shall the electronic monitoring be in
place if the protective order is not in place.

(b) A person violating an order made pursuant to paragraphs
(1) to (7), inclusive, of subdivision (a) may be punished for any
substantive offense described in Section 136.1, or for a contempt
of the court making the order. A finding of contempt shall not be
a bar to prosecution for a violation of Section 136.1. However, a
person so held in contempt shall be entitled to credit for punishment
imposed therein against a sentence imposed upon conviction of
an offense described in Section 136.1. A conviction or acquittal
for a substantive offense under Section 136.1 shall be a bar to a
subsequent punishment for contempt arising out of the same act.

(c) (1) (A) Notwithstanding subdivision (e), an emergency
protective order issued pursuant to Chapter 2 (commencing with
Section 6250) of Part 3 of Division 10 of the Family Code or
Section 646.91 shall have precedence in enforcement over any
other restraining or protective order, provided the emergency
protective order meets all of the following requirements:

(i) The emergency protective order is issued to protect one or
more individuals who are already protected persons under another
restraining or protective order.

(ii) The emergency protective order restrains the individual who
is the restrained person in the other restraining or protective order
specified in subparagraph (A).

(iii) The provisions of the emergency protective order are more
restrictive in relation to the restrained person than are the provisions
of the other restraining or protective order specified in
subparagraph (A).

(B) An emergency protective order that meets the requirements
of paragraph (1) shall have precedence in enforcement over the
provisions of any other restraining or protective order only with
respect to those provisions of the emergency protective order that
are more restrictive in relation to the restrained person.

(2) Except as described in paragraph (1), a no-contact order, as
described in Section 6320 of the Family Code, shall have
precedence in enforcement over any other restraining or protective
order.

(d) (1) A person subject to a protective order issued under this
section shall not own, possess, purchase, receive, or attempt to
purchase or receive a firearm while the protective order is in effect.

(2) The court shall order a person subject to a protective order
issued under this section to relinquish any firearms he or she owns
or possesses pursuant to Section 527.9 of the Code of Civil
Procedure.

(3) A person who owns, possesses, purchases begin insert , end insert or receives, or
attempts to purchase or receive a firearm while the protective order
is in effect is punishable pursuant to Section 29825.

(e) (1) In all cases where the defendant is charged with a crime
of domestic violence, as defined in Section 13700, the court shall
consider issuing the above-described orders on its own motion.
All interested parties shall receive a copy of those orders. In order
to facilitate this, the court’s records of all criminal cases involving
domestic violence shall be marked to clearly alert the court to this
issue.

(2) In those cases in which a complaint, information, or
indictment charging a crime of domestic violence, as defined in
Section 13700, has been issued, except as described in subdivision
(c), a restraining order or protective order against the defendant
issued by the criminal court in that case has precedence in
enforcement over a civil court order against the defendant.

(3) Custody and visitation with respect to the defendant and his
or her minor children may be ordered by a family or juvenile court
consistent with the protocol established pursuant to subdivision
(f), but if ordered after a criminal protective order has been issued
pursuant to this section, the custody and visitation order shall make
reference to, and, if there is not an emergency protective order that
has precedence in enforcement pursuant to paragraph (1) of
subdivision (c), or a no-contact order, as described in Section 6320
of the Family Code, acknowledge the precedence of enforcement
of, an appropriate criminal protective order. On or before July 1,
2014, the Judicial Council shall modify the criminal and civil court
forms consistent with this subdivision.

(f) On or before January 1, 2003, the Judicial Council shall
promulgate a protocol, for adoption by each local court in
substantially similar terms, to provide for the timely coordination
of all orders against the same defendant and in favor of the same
named victim or victims. The protocol shall include, but shall not
be limited to, mechanisms for ensuring appropriate communication
and information sharing between criminal, family, and juvenile
courts concerning orders and cases that involve the same parties,
and shall permit a family or juvenile court order to coexist with a
criminal court protective order subject to the following conditions:

(1) An order that permits contact between the restrained person
and his or her children shall provide for the safe exchange of the
children and shall not contain language either printed or
handwritten that violates a “no-contact order” issued by a criminal
court.

(2) Safety of all parties shall be the courts’ paramount concern.
The family or juvenile court shall specify the time, day, place, and
manner of transfer of the child, as provided in Section 3100 of the
Family Code.

(g) On or before January 1, 2003, the Judicial Council shall
modify the criminal and civil court protective order forms
consistent with this section.

(h) In any case in which a complaint, information, or indictment
charging a crime of domestic violence, as defined in Section 13700,
has been filed, the court may consider, in determining whether
good cause exists to issue an order under paragraph (1) of
subdivision (a), the underlying nature of the offense charged, and
the information provided to the court pursuant to Section 273.75.

(i) (1) In all cases in which a criminal defendant has been
convicted of a crime of domestic violence as defined in Section
13700, a violation of Section 261, 261.5, or 262, or any crime that
requires the defendant to register pursuant to subdivision (c) of
Section 290, the court, at the time of sentencing, shall consider
issuing an order restraining the defendant from any contact with
the victim. The order may be valid for up to 10 years, as determined
by the court. This protective order may be issued by the court
regardless of whether the defendant is sentenced to the state prison
or a county jail, or whether imposition of sentence is suspended
and the defendant is placed on probation. It is the intent of the
Legislature in enacting this subdivision that the duration of any
restraining order issued by the court be based upon the seriousness
of the facts before the court, the probability of future violations,
and the safety of the victim and his or her immediate family.

(2) An order under this subdivision may include provisions for
electronic monitoring if the local government, upon receiving the
concurrence of the county sheriff or the chief probation officer
with jurisdiction, adopts a policy authorizing electronic monitoring
of defendants and specifies the agency with jurisdiction for this
purpose. If the court determines that the defendant has the ability
to pay for the monitoring program, the court shall order the
defendant to pay for the monitoring. If the court determines that
the defendant does not have the ability to pay for the electronic
monitoring, the court may order the electronic monitoring to be
paid for by the local government that adopted the policy authorizing
electronic monitoring. The duration of the electronic monitoring
shall not exceed one year from the date the order is issued.

(j) For purposes of this section, “local government” means the
county that has jurisdiction over the protective order.

SEC. 116.  

Section 145.5 of the Penal Code is amended to read:

145.5.  

(a) (1) Subject to paragraph (2), notwithstanding any
law to the contrary, no agency of the State of California, no
political subdivision of this state, no employee of an agency, or a
political subdivision, of this state acting in his or her official
capacity, and no member of the California National Guard on
official state duty shall knowingly aid an agency of the begin delete Armed
Forces end delete begin insert armed forces end insert of the United States in any investigation,
prosecution, or detention of a person within California pursuant
to (A) Sections 1021 and 1022 of the National Defense
Authorization Act for Fiscal Year 2012 (NDAA), (B) the federal
law known as the Authorization for Use of Military Force (Public
Law 107-40), enacted in 2001, or (C) any other federal law, if the
state agency, political subdivision, employee, or member of the
California National Guard would violate the United States
Constitution, the California Constitution, or any law of this state
by providing that aid.

(2) Paragraph (1) does not apply to participation by state or
local law enforcement or the California National Guard in a joint
task force, partnership, or other similar cooperative agreement
with federal law enforcement if that joint task force, partnership,
or similar cooperative agreement is not for the purpose of
investigating, prosecuting, or detaining any person pursuant to (A)
Sections 1021 and 1022 of the NDAA, (B) the federal law known
as the Authorization for Use of Military Force (Public Law
107-40), enacted in 2001, or (C) any other federal law, if the state
agency, political subdivision, employee, or member of the
California National Guard would violate the United States
Constitution, the California Constitution, or any law of this state
by providing that aid.

(b) It is the policy of this state to refuse to provide material
support for or to participate in any way with the implementation
within this state of any federal law that purports to authorize
indefinite detention of a person within California. Notwithstanding
any other law, no local law enforcement agency or local or
municipal government, or the employee of that agency or
government acting in his or her official capacity, shall knowingly
use state funds or funds allocated by the state to local entities on
or after January 1, 2013, in whole or in part, to engage in any
activity that aids an agency of the begin delete Armed Forces end delete begin insert armed forces end insert of
the United States in the detention of any person within California
for purposes of implementing Sections 1021 and 1022 of the
NDAA or the federal law known as the Authorization for Use of
Military Force (Public Law 107-40), enacted in begin delete 200 1, end delete begin insert 2001, end insert if
that activity would violate the United States Constitution, the
California Constitution, or any law of this state.

SEC. 117.  

Section 273.5 of the Penal Code is amended to read:

273.5.  

(a) Any person who willfully inflicts corporal injury
resulting in a traumatic condition upon a victim described in
subdivision (b) is guilty of a felony, and upon conviction thereof
shall be punished by imprisonment in the state prison for two,
three, or four years, or in a county jail for not more than one year,
or by a fine of up to six thousand dollars ($6,000) begin insert , end insert or by both that
fine and imprisonment.

(b) Subdivision (a) shall apply if the victim is or was one or
more of the following:

(1) The offender’s spouse or former spouse.

(2) The offender’s cohabitant or former cohabitant.

(3) The offender’s fiancé or fiancée, or someone with whom
the offender has, or previously had, an engagement or dating
relationship, as defined in paragraph (10) of subdivision (f) of
Section 243.

(4) The mother or father of the offender’s child.

(c) Holding oneself out to be the husband or wife of the person
with whom one is cohabiting is not necessary to constitute
cohabitation as the term is used in this section.

(d) As used in this section, “traumatic condition” means a
condition of the body, such as a wound, or external or internal
injury, including, but not limited to, injury as a result of
strangulation or suffocation, whether of a minor or serious nature,
caused by a physical force. For purposes of this section,
“strangulation” and “suffocation” include impeding the normal
breathing or circulation of the blood of a person by applying
pressure on the throat or neck.

(e) For the purpose of this section, a person shall be considered
the father or mother of another person’s child if the alleged male
parent is presumed the natural father under Sections 7611 and 7612
of the Family Code.

(f) (1) Any person convicted of violating this section for acts
occurring within seven years of a previous conviction under
subdivision (a), or subdivision (d) of Section 243, or Section 243.4,
244, 244.5, or 245, shall be punished by imprisonment in a county
jail for not more than one year, or by imprisonment in the state
prison for two, four, or five years, or by both imprisonment and a
fine of up to ten thousand dollars ($10,000).

(2) Any person convicted of a violation of this section for acts
occurring within seven years of a previous conviction under
subdivision (e) of Section 243 shall be punished by imprisonment
in the state prison for two, three, or four years, or in a county jail
for not more than one year, or by a fine of up to ten thousand
dollars ($10,000), or by both that imprisonment and fine.

(g) If probation is granted to any person convicted under
subdivision (a), the court shall impose probation consistent with
the provisions of Section 1203.097.

(h) If probation is granted, or the execution or imposition of a
sentence is suspended, for any defendant convicted under
subdivision (a) who has been convicted of any prior offense
specified in subdivision (f), the court shall impose one of the
following conditions of probation:

(1) If the defendant has suffered one prior conviction within the
previous seven years for a violation of any offense specified in
subdivision (f), it shall be a condition begin delete thereof, end delete begin insert of probation, end insert in
addition to the provisions contained in Section 1203.097, that he
or she be imprisoned in a county jail for not less than 15 days.

(2) If the defendant has suffered two or more prior convictions
within the previous seven years for a violation of any offense
specified in subdivision (f), it shall be a condition of probation, in
addition to the provisions contained in Section 1203.097, that he
or she be imprisoned in a county jail for not less than 60 days.

(3) The court, upon a showing of good cause, may find that the
mandatory imprisonment required by this subdivision shall not be
imposed and shall state on the record its reasons for finding good
cause.

(i) If probation is granted upon conviction of a violation of
subdivision (a), the conditions of probation may include, consistent
with the terms of probation imposed pursuant to Section 1203.097,
in lieu of a fine, one or both of the following requirements:

(1) That the defendant make payments to a battered women’s
shelter, up to a maximum of five thousand dollars ($5,000),
pursuant to Section 1203.097.

(2) (A) That the defendant reimburse the victim for reasonable
costs of counseling and other reasonable expenses that the court
finds are the direct result of the defendant’s offense.

(B) For any order to pay a fine, make payments to a battered
women’s shelter, or pay restitution as a condition of probation
under this subdivision, the court shall make a determination of the
defendant’s ability to pay. begin delete In no event shall any end delete begin insert An end insert order to make
payments to a battered women’s shelter begin insert shall not end insert be made if it
would impair the ability of the defendant to pay direct restitution
to the victim or court-ordered child support. If the injury to a
married person is caused in whole or in part by the criminal acts
of his or her spouse in violation of this section, the community
property may not be used to discharge the liability of the offending
spouse for restitution to the injured spouse, required by Section
1203.04, as operative on or before August 2, 1995, or Section
1202.4, or to a shelter for costs with regard to the injured spouse
and dependents, required by this section, until all separate property
of the offending spouse is exhausted.

(j) Upon conviction under subdivision (a), the sentencing court
shall also consider issuing an order restraining the defendant from
any contact with the victim, which may be valid for up to 10 years,
as determined by the court. It is the intent of the Legislature that
the length of any restraining order be based upon the seriousness
of the facts before the court, the probability of future violations,
and the safety of the victim and his or her immediate family. This
protective order may be issued by the court whether the defendant
is sentenced to state begin delete prison, end delete begin insert prison or end insert county jail, or if imposition
of sentence is suspended and the defendant is placed on probation.

(k) If a peace officer makes an arrest for a violation of this
section, the peace officer is not required to inform the victim of
his or her right to make a citizen’s arrest pursuant to subdivision
(b) of Section 836.

SEC. 118.  

Section 289.6 of the Penal Code is amended to read:

289.6.  

(a) (1) An employee or officer of a public entity health
facility, or an employee, officer, or agent of a private person or
entity that provides a health facility or staff for a health facility
under contract with a public entity, who engages in sexual activity
with a consenting adult who is confined in a health facility is guilty
of a public offense. As used in this paragraph, “health facility”
means a health facility as defined in subdivisions (b), (e), (g), (h),
and (j) of, and subparagraph (C) of paragraph (2) of subdivision
(i) of, Section 1250 of the Health and Safety Code, in which the
victim has been confined involuntarily.

(2) An employee or officer of a public entity detention facility,
or an employee, officer, agent of a private person or entity that
provides a detention facility or staff for a detention facility, a
person or agent of a public or private entity under contract with a
detention facility, a volunteer of a private or public entity detention
facility, or a peace officer who engages in sexual activity with a
consenting adult who is confined in a detention facility is guilty
of a public offense.

(3) An employee with a department, board, or authority under
the Department of Corrections and Rehabilitation or a facility
under contract with a department, board, or authority under the
Department of Corrections and Rehabilitation, who, during the
course of his or her employment directly provides treatment, care,
control, or supervision of inmates, wards, or parolees, and who
engages in sexual activity with a consenting adult who is an inmate,
ward, or parolee, is guilty of a public offense.

(b) As used in this section, the term “public entity” means the
state, federal government, a city, a county, a city and county, a
joint county jail district, or any entity created as a result of a joint
powers agreement between two or more public entities.

(c) As used in this section, the term “detention facility” means:

(1) A prison, jail, camp, or other correctional facility used for
the confinement of adults or both adults and minors.

(2) A building or facility used for the confinement of adults or
adults and minors pursuant to a contract with a public entity.

(3) A room that is used for holding persons for interviews,
interrogations, or investigations and that is separate from a jail or
located in the administrative area of a law enforcement facility.

(4) A vehicle used to transport confined persons during their
period of confinement, including transporting a person after he or
she has been arrested but has not been booked.

(5) A court holding facility located within or adjacent to a court
building that is used for the confinement of persons for the purpose
of court appearances.

(d) As used in this section, “sexual activity” means:

(1) Sexual intercourse.

(2) Sodomy, as defined in subdivision (a) of Section 286.

(3) Oral copulation, as defined in subdivision (a) of Section
288a.

(4) Sexual penetration, as defined in subdivision (k) of Section
289.

(5) The rubbing or touching of the breasts or sexual organs of
another, or of oneself in the presence of and with knowledge of
another, with the intent of arousing, appealing to, or gratifying the
lust, passions, or sexual desires of oneself or another.

(e) Consent by a confined person or parolee to sexual activity
proscribed by this section is not a defense to a criminal prosecution
for violation of this section.

(f) This section does not apply to sexual activity between
consenting adults that occurs during an overnight conjugal visit
that takes place pursuant to a court order or with the written
approval of an authorized representative of the public entity that
operates or contracts for the operation of the detention facility
where the conjugal visit takes place, to physical contact or
penetration made pursuant to a lawful search, or bona fide medical
examinations or treatments, including clinical treatments.

(g) Any violation of paragraph (1) of subdivision (a), or a
violation of paragraph (2) or (3) of subdivision (a) as described in
paragraph (5) of subdivision (d), is a misdemeanor.

(h) Any violation of paragraph (2) or (3) of subdivision (a), as
described in paragraph (1), (2), (3), or (4) of subdivision (d), shall
be punished by imprisonment in a county jail not exceeding one
year, or in the state prison, or by a fine of not more than ten
thousand dollars ($10,000) or by both that fine and imprisonment.

(i) Any person previously convicted of a violation of this section
shall, upon a subsequent violation, be guilty of a felony.

(j) Anyone who is convicted of a felony violation of this section
who is employed by a department, board, or authority within the
Department of Corrections and Rehabilitation shall be terminated
in accordance with the State Civil Service Act (Part 2 (commencing
with Section 18500) of Division 5 of Title 2 of the Government
Code). Anyone who has been convicted of a felony violation of
this section shall not be eligible to be hired or reinstated by a
department, board, or authority within the begin delete Youth and Adult
Correctional Agency end delete begin insert Department of Corrections and
Rehabilitation end insert .

SEC. 119.  

Section 311.11 of the Penal Code is amended to
read:

311.11.  

(a) Every person who knowingly possesses or controls
any matter, representation of information, data, or image, including,
but not limited to, any film, filmstrip, photograph, negative, slide,
photocopy, videotape, video laser disc, computer hardware,
computer software, computer floppy disc, data storage media,
CD-ROM, or computer-generated equipment or any other
computer-generated image that contains or incorporates in any
manner, any film or filmstrip, the production of which involves
the use of a person under 18 years of age, knowing that the matter
depicts a person under 18 years of age personally engaging in or
simulating sexual conduct, as defined in subdivision (d) of Section
311.4, is guilty of a felony and shall be punished by imprisonment
in the state prison, or a county jail for up to one year, or by a fine
not exceeding two thousand five hundred dollars ($2,500), or by
both the fine and imprisonment.

(b) Every person who commits a violation of subdivision (a),
and who has been previously convicted of a violation of this
section, an offense requiring registration under the Sex Offender
Registration Act, or an attempt to commit any of the
above-mentioned offenses, is guilty of a felony and shall be
punished by imprisonment in the state prison for two, four, or six
years.

(c) Each person who commits a violation of subdivision (a)
shall be punished by imprisonment in the state prison for 16
months, or two or five years, or shall be punished by imprisonment
in a county jail for up to one year, or by a fine not exceeding two
thousand five hundred dollars ($2,500), or by both the fine and
imprisonment, if one of the following factors exists:

(1) The matter contains more than 600 images that violate
subdivision (a), and the matter contains 10 or more images
involving a prepubescent minor or a minor who has not attained
12 years of age.

(2) The matter portrays sexual sadism or sexual masochism
involving a person under 18 years of age. For purposes of this
section, “sexual sadism” means the intentional infliction of pain
for purposes of sexual gratification or stimulation. For purposes
of this section, “sexual masochism” means intentionally
experiencing pain for purposes of sexual gratification or
stimulation.

(d) It is not necessary to prove that the matter is obscene in order
to establish a violation of this section.

(e) This section does not apply to drawings, figurines, statues,
or any film rated by the Motion Picture Association of America,
nor does it apply to live or recorded telephone messages when
transmitted, disseminated, or distributed as part of a commercial
transaction.

(f) For purposes of determining the number of images under
paragraph (1) of subdivision (c), the following shall apply:

(1) Each photograph, picture, begin delete computer, end delete begin insert computer end insert or
computer-generated image, or any similar visual depiction shall
be considered to be one image.

(2) Each video, video-clip, movie, or similar visual depiction
shall be considered to have 50 images.

SEC. 120.  

Section 311.12 of the Penal Code is amended to
read:

311.12.  

(a) (1) Every person who is convicted of a violation
of Section 311.1, 311.2, 311.3, 311.10, or 311.11 in which the
offense involves the production, use, possession, control, or
advertising of matter or image that depicts a person under 18 years
of age personally engaging in or simulating sexual conduct, as
defined in subdivision (d) of Section 311.4, in which the violation
is committed on, or via, a government-owned computer or via a
government-owned computer network, shall, in addition to any
imprisonment or fine imposed for the commission of the underlying
offense, be punished by a fine not exceeding two thousand dollars
($2,000), unless the court determines that the defendant does not
have the ability to pay.

(2) Every person who is convicted of a violation of Section
311.1, 311.2, 311.3, 311.10, or 311.11 in which the offense
involves the production, use, possession, control, or advertising
of matter or image that depicts a person under 18 years of age
personally engaging in or simulating sexual conduct, as defined
in subdivision (d) of Section 311.4, in which the production,
transportation, or distribution of which involves the use, possession,
or control of government-owned property shall, in addition to any
imprisonment or fine imposed for the commission of the underlying
offense, be punished by a fine not exceeding two thousand dollars
($2,000), unless the court determines that the defendant does not
have the ability to pay.

(b) The fines in subdivision (a) shall not be subject to the
provisions of Sections 70372, 76000, 76000.5, and 76104.6 of the
Government Code, or Sections 1464 and 1465.7 of this code.

(c) Revenue from any fines collected pursuant to this section
shall be deposited into a county fund established for that purpose
and allocated as follows, and a county may transfer all or part of
any of those allocations to another county for the allocated use:

(1) One-third for sexual assault investigator training.

(2) One-third for public agencies and nonprofit corporations
that provide shelter, counseling, or other direct services for victims
of human trafficking.

(3) One-third for multidisciplinary teams.

(d) As used in this section:

(1) “Computer” includes any computer hardware, computer
software, computer floppy disk, data storage medium, or CD-ROM.

(2) “Government-owned” includes property and networks owned
or operated by state government, city government, city and county
government, county government, a public library, or a public
college or university.

(3) “Multidisciplinary teams” means a child-focused,
facility-based program in which representatives from many
disciplines, including law enforcement, child protection,
prosecution, medical and mental health, and victim and child
advocacy work together to conduct interviews and make team
decisions about the investigation, treatment, management, and
prosecution of child abuse cases, including child sexual abuse
cases. It is the intent of the Legislature that this multidisciplinary
team approach will protect victims of child abuse from multiple
interviews, result in a more complete understanding of case issues,
and provide the most effective begin delete child end delete begin insert child end insert begin insert - end insert and family-focused
system response possible.

(e)  begin delete Nothing in this end delete begin insert This end insert section shall begin insert not end insert be construed to require
any government or government entity to retain data in violation
of any provision of state or federal law.

SEC. 121.  

Section 326.3 of the Penal Code is amended to read:

326.3.  

(a) The Legislature finds and declares all of the
following:

(1) Nonprofit organizations provide important and essential
educational, philanthropic, and social services to the people of the
state.

(2) One of the great strengths of California is a vibrant nonprofit
sector.

(3) Nonprofit and philanthropic organizations touch the lives
of every Californian through service and employment.

(4) Many of these services would not be available if nonprofit
organizations did not provide them.

(5) There is a need to provide methods of fundraising to
nonprofit organizations to enable them to provide these essential
services.

(6) Historically, many nonprofit organizations have used
charitable bingo as one of their key fundraising strategies to
promote the mission of the charity.

(7) Legislation is needed to provide greater revenues for
nonprofit organizations to enable them to fulfill their charitable
purposes, and especially to meet their increasing social service
obligations.

(8) Legislation is also needed to clarify that existing law requires
that all charitable bingo must be played using a tangible card and
that the only permissible electronic devices to be used by charitable
bingo players are card-minding devices.

(b) Neither the prohibition on gambling in this chapter nor in
Chapter 10 (commencing with Section 330) applies to any remote
caller bingo game that is played or conducted in a city, county, or
city and county pursuant to an ordinance enacted under Section
19 of Article IV of the California Constitution, if the ordinance
allows a remote caller bingo game to be played or conducted only
in accordance with this section, including the following
requirements:

(1) The game may be conducted only by the following
organizations:

(A) An organization that is exempted from the payment of the
taxes imposed under the Corporation Tax Law by Section 23701a,
23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701l, or
23701w of the Revenue and Taxation Code.

(B) A mobilehome park association.

(C) A senior citizens’ organization.

(D) Charitable organizations affiliated with a school district.

(2) The organization conducting the game shall have been
incorporated or in existence for three years or more.

(3) The organization conducting the game shall be licensed
pursuant to subdivision (l) of Section 326.5.

(4) The receipts of the game shall be used only for charitable
purposes. The organization conducting the game shall determine
the disbursement of the net receipts of the game.

(5) The operation of bingo may not be the primary purpose for
which the organization is organized.

(c)  begin delete (1) end delete begin delete   end delete A city, county, or city and county may adopt an
ordinance in substantially the following form to authorize remote
caller bingo in accordance with the requirements of subdivision
(b):

 

Sec. _.01. Legislative Authorization.

This chapter is adopted pursuant to Section 19 of Article IV of
the California Constitution, as implemented by Sections 326.3 and
326.4 of the Penal Code.

Sec. _.02. Remote Caller Bingo Authorized.

Remote Caller Bingo may be lawfully played in the [City,
County, or City and County] pursuant to the provisions of Sections
326.3 and 326.4 of the Penal Code, and this chapter, and not
otherwise.

Sec. _.03. Qualified Applicants: Applicants for Licensure.

(a) The following organizations are qualified to apply to the
License Official for a license to operate a bingo game if the receipts
of those games are used only for charitable purposes:

(1) An organization exempt from the payment of the taxes
imposed under the Corporation Tax Law by Section 23701a,
23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701l, or
23701w of the Revenue and Taxation Code.

(2) A mobilehome park association of a mobilehome park that
is situated in the [City, County, or City and County].

(3) Senior citizen organizations.

(4) Charitable organizations affiliated with a school district.

(b) The application shall be in a form prescribed by the License
Official and shall be accompanied by a nonrefundable filing fee
in an amount determined by resolution of the [Governing Body of
the City, County, or City and County] from time to time. The
following documentation shall be attached to the application, as
applicable:

(1) A certificate issued by the Franchise Tax Board certifying
that the applicant is exempt from the payment of the taxes imposed
under the Corporation Tax Law pursuant to Section 23701a,
23701b, 23701d, 23701e, 23701f, 23701g, 23701k, 23701l, or
23701w of the Revenue and Taxation Code. In lieu of a certificate
issued by the Franchise Tax Board, the License Official may refer
to the Franchise Tax Board’s Internet Web site to verify that the
applicant is exempt from the payment of the taxes imposed under
the Corporation Tax Law.

(2) Other evidence as the License Official determines is
necessary to verify that the applicant is a duly organized
mobilehome park association of a mobilehome park situated in
the [City, County, or City and County].

Sec. _.04. License Application: Verification.

The license shall not be issued until the License Official has
verified the facts stated in the application and determined that the
applicant is qualified.

Sec. _.05. Annual Licenses.

A license issued pursuant to this chapter shall be valid until the
end of the calendar year, at which time the license shall expire. A
new license shall only be obtained upon filing a new application
and payment of the license fee. The fact that a license has been
issued to an applicant creates no vested right on the part of the
licensee to continue to offer bingo for play. The [Governing Body
of the City, County, or City and County] expressly reserves the
right to amend or repeal this chapter at any time by resolution. If
this chapter is repealed, all licenses issued pursuant to this chapter
shall cease to be effective for any purpose on the effective date of
the repealing resolution.

Sec. _.06. Conditions of Licensure.

(a) Any license issued pursuant to this chapter shall be subject
to the conditions contained in Sections 326.3 and 326.4 of the
Penal Code, and each licensee shall comply with the requirements
of those provisions.

(b) Each license issued pursuant to this chapter shall be subject
to the following additional conditions:

(1) Bingo games shall not be conducted by any licensee on more
than two days during any week, except that a licensee may hold
one additional game, at its election, in each calendar quarter.

(2) The licensed organization is responsible for ensuring that
the conditions of this chapter and Sections 326.3 and 326.4 of the
Penal Code are complied with by the organization and its officers
and members. A violation of any one or more of those conditions
or provisions shall constitute cause for the revocation of the
organization’s license. At the request of the organization, the
[Governing Body of the City, County, or City and County] shall
hold a public hearing before revoking any license issued pursuant
to this chapter.

(3) This section shall not require a city, county, or city and
county to use this model ordinance in order to authorize remote
caller bingo.

(d) It is a misdemeanor for any person to receive or pay a profit,
wage, or salary from any remote caller bingo game, provided that
administrative, managerial, technical, financial, and security
personnel employed by the organization conducting the bingo
game may be paid reasonable fees for services rendered from the
revenues of bingo games, as provided in subdivision (l), except
that fees paid under those agreements shall not be determined as
a percentage of receipts or other revenues from, or be dependent
on the outcome of, the game.

(e) A violation of subdivision (d) shall be punishable by a fine
not to exceed ten thousand dollars ($10,000), which fine shall be
deposited in the general fund of the city, county, or city and county
that enacted the ordinance authorizing the remote caller bingo
game. A violation of any provision of this section, other than
subdivision (d), is a misdemeanor.

(f) The city, county, or city and county that enacted the
ordinance authorizing the remote caller bingo game, or the Attorney
General, may bring an action to enjoin a violation of this section.

(g)  begin delete No minors end delete begin insert A minor end insert shall begin insert not end insert be allowed to participate in
any remote caller bingo game.

(h) A remote caller bingo game shall include only sites that are
located within this state.

(i) An organization authorized to conduct a remote caller bingo
game pursuant to subdivision (b) shall conduct the game only on
property that is owned or leased by the organization, or the use of
which is donated to the organization. This subdivision shall not
be construed to require that the property that is owned or leased
by, or the use of which is donated to, the organization be used or
leased exclusively by, or donated exclusively to, that organization.

(j) (1) All remote caller bingo games shall be open to the public,
and shall not be limited to the members of the authorized
organization.

(2) No more than 750 players may participate in a remote caller
bingo game in a single location.

(3) If the Governor or the President declares a state of
emergency in response to a natural disaster or other public
catastrophe occurring in California, an organization authorized to
conduct remote caller bingo games may, while that declaration is
in effect, conduct a remote caller bingo game pursuant to this
section with more than 750 participants in a single venue if the net
proceeds of the game, after deduction of prizes and overhead
expenses, are donated to or expended exclusively for the relief of
the victims of the disaster or catastrophe, and the organization
gives, for each participating remote caller bingo site, the
department and local law enforcement at least 10 days’ written
notice of the intent to conduct that game.

(4) For each participating remote caller bingo site, an
organization authorized by the commission to conduct remote
caller bingo games shall provide the department and local law
enforcement with at least 30 days’ advance written notice of its
intent to conduct a remote caller bingo game. That notice shall
include all of the following:

(A) The legal name of the organization and the address of record
of the agent upon whom legal notice may be served.

(B) The locations of the caller and remote players, whether the
property is owned by the organization or donated, and if donated,
by whom.

(C) The name of the licensed caller and site manager.

(D) The names of administrative, managerial, technical,
financial, and security personnel employed.

(E) The name of the vendor and any person or entity maintaining
the equipment used to operate and transmit the game.

(F) The name of the person designated as having a fiduciary
responsibility for the game pursuant to paragraph (2) of subdivision
(k).

(G) The license numbers of all persons specified in
subparagraphs (A) to (F), inclusive, who are required to be licensed.

(H) A copy of the local ordinance for any city, county, or city
and county in which the game will be played. The department shall
post the ordinance on its Internet Web site.

(I) A copy of the license issued to the organization by the
governing body of the city, county, or city and county pursuant to
subdivision (b).

(k) (1) A remote caller bingo game shall be operated and staffed
only by members of the authorized organization that organized it.
Those members shall not receive a profit, wage, or salary from
any remote caller bingo game. Only the organization authorized
to conduct a remote caller bingo game shall operate that game, or
participate in the promotion, supervision, or any other phase of a
remote caller bingo game. Subject to subdivision (m), this
subdivision shall not preclude the employment of administrative,
managerial, technical, financial, or security personnel who are not
members of the authorized organization at a location participating
in the remote caller bingo game by the organization conducting
the game. Notwithstanding any other law, exclusive or other
agreements between the authorized organization and other entities
or persons to provide services in the administration, management,
or conduct of the game shall not be considered a violation of the
prohibition against holding a legally cognizable financial interest
in the conduct of the remote caller bingo game by persons or
entities other than the charitable organization, or other entity
authorized to conduct the remote caller bingo games, if those
persons or entities obtain the gambling licenses, the key employee
licenses, or the work permits required by, and otherwise comply
with, Chapter 5 (commencing with Section 19800) of Division 8
of the Business and Professions Code. Fees to be paid under those
agreements shall be reasonable and shall not be determined as a
percentage of receipts or other revenues from, or be dependent on
the outcome of, the game.

(2) An organization that conducts a remote caller bingo game
shall designate a person as having fiduciary responsibility for the
game.

(l)  begin delete No end delete begin insert An end insert individual, corporation, partnership, or other legal
entity, except the organization authorized to conduct or participate
in a remote caller bingo game, shall begin insert not end insert hold a legally cognizable
financial interest in the conduct of that game.

(m) An organization authorized to conduct a remote caller bingo
game pursuant to this section shall not have overhead costs
exceeding 20 percent of gross sales, except that the limitations of
this section shall not apply to one-time, nonrecurring capital
acquisitions. For purposes of this subdivision, “overhead costs”
includes, but is not limited to, amounts paid for rent and equipment
leasing and the reasonable fees authorized to be paid to
administrative, managerial, technical, financial, and security
personnel employed by the organization pursuant to subdivision
(d). For the purpose of keeping its overhead costs below 20 percent
of gross sales, an authorized organization may elect to deduct all
or a portion of the fees paid to financial institutions for the use and
processing of credit card sales from the amount of gross revenues
awarded for prizes. In that case, the redirected fees for the use and
processing of credit card sales shall not be included in “overhead
costs” as defined in the California Remote Caller Bingo Act.
Additionally, fees paid to financial institutions for the use and
processing of credit card sales shall not be deducted from the
proceeds retained by the charitable organization.

(n) A person shall not be allowed to participate in a remote
caller bingo game unless the person is physically present at the
time and place where the remote caller bingo game is being
conducted. A person shall be deemed to be physically present at
the place where the remote caller bingo game is being conducted
if he or she is present at any of the locations participating in the
remote caller bingo game in accordance with this section.

(o) (1) An organization shall not cosponsor a remote caller
bingo game with one or more other organizations unless one of
the following is true:

(A) All of the cosponsors are affiliated under the master charter
or articles and bylaws of a single organization.

(B) All of the cosponsors are affiliated through an organization
described in paragraph (1) of subdivision (b), and have the same
Internal Revenue Service activity code.

(2) Notwithstanding paragraph (1), a maximum of 10
unaffiliated organizations described in paragraph (1) of subdivision
(b) may enter into an agreement to cosponsor a remote caller game,
but that game shall have no more than 10 locations.

(3) An organization shall not conduct remote caller bingo more
than two days per week.

(4) Before sponsoring or operating any game authorized under
paragraph (1) or (2), each of the cosponsoring organizations shall
have entered into a written agreement, a copy of which shall be
provided to the department, setting forth how the expenses and
proceeds of the game are to be allocated among the participating
organizations, the bank accounts into which all receipts are to be
deposited and from which all prizes are to be paid, and how game
records are to be maintained and subjected to annual audit.

(p) The value of prizes awarded during the conduct of any
remote caller bingo game shall not exceed 37 percent of the gross
receipts for that game. When an authorized organization elects to
deduct fees paid for the use and processing of credit card sales
from the amount of gross revenues for that game awarded for
prizes, the maximum amount of gross revenues that may be
awarded for prizes shall not exceed 37 percent of the gross receipts
for that game, less the amount of redirected fees paid for the use
and processing of credit card sales. Every remote caller bingo game
shall be played until a winner is declared. Progressive prizes are
prohibited. The declared winner of a remote caller bingo game
shall provide his or her identifying information and a mailing
address to the onsite manager of the remote caller bingo game.
Prizes shall be paid only by check; no cash prizes shall be paid.
The organization conducting the remote caller bingo game may
issue a check to the winner at the time of the game, or may send
a check to the declared winner by United States Postal Service
certified mail, return receipt requested. All prize money exceeding
state and federal exemption limits on prize money shall be subject
to income tax reporting and withholding requirements under
applicable state and federal laws and regulations and those reports
and withholding shall be forwarded, within 10 business days, to
the appropriate state or federal agency on behalf of the winner. A
report shall accompany the amount withheld identifying the person
on whose behalf the money is being sent. Any game interrupted
by a transmission failure, electrical outage, or act of God shall be
considered void in the location that was affected. A refund for a
canceled game or games shall be provided to the purchasers.

(q) (1) The commission shall require the licensure of the
following:

(A) Any person who contracts to conduct remote caller bingo
on behalf of an organization described in subdivision (b) or who
is identified as having fiduciary responsibility for the game
pursuant to subdivision (k).

(B) Any person who directly or indirectly manufactures,
distributes, supplies, vends, leases, or otherwise provides supplies,
devices, services, or other equipment designed for use in the
playing of a remote caller bingo game by any organization
described in subdivision (b).

(C) Beginning January 31, 2009, or a later date as may be
established by the commission, all persons described in
subparagraph (A) or (B) may submit to the commission a letter of
intent to submit an application for licensure. The letter shall clearly
identify the principal applicant, all categories under which the
application will be filed, and the names of all those particular
individuals who are applying. Each charitable organization shall
provide an estimate of the frequency with which it plans to conduct
remote caller bingo operations, including the number of locations.
The letter of intent may be withdrawn or updated at any time.

(2) (A) Background investigations related to remote caller bingo
conducted by the department shall be in accordance with the
Gambling Control Act (Chapter 5 (commencing with Section
19800) of Division 8 of the Business and Professions Code) and
as specified in regulations promulgated by the commission or the
department.

(B) Fees to cover background investigation costs shall be paid
and accounted for in accordance with Section 19867 of the
Business and Professions Code.

(3) (A) Every application for a license or approval by a person
described in subparagraph (A) of paragraph (1) shall be submitted
to the department and accompanied by a nonrefundable fee.

(B) Fees and revenue collected pursuant to this paragraph shall
be deposited in the California Bingo Fund, which is hereby created
in the State Treasury. The funds deposited in the California Bingo
Fund shall be available, upon appropriation by the Legislature, for
expenditure by the commission and the department exclusively
for the support of the commission and department in carrying out
their duties and responsibilities under this section and Section
326.5.

(C) A loan is hereby authorized from the Gambling Control
Fund to the California Bingo Fund on or after January 1, 2009, in
an amount of up to five hundred thousand dollars ($500,000) to
fund operating, personnel, and other startup costs incurred by the
commission and department relating to this section. Funds from
the California Bingo Fund shall be available to the commission
and department upon appropriation by the Legislature in the annual
Budget Act. The loan shall be subject to all of the following
conditions:

(i) The loan shall be repaid to the Gambling Control Fund as
soon as there is sufficient money in the California Bingo Fund to
repay the amount loaned, but no later than July 1, 2019.

(ii) Interest on the loan shall be paid from the California Bingo
Fund at the rate accruing to moneys in the Pooled Money
Investment Account.

(iii) The terms and conditions of the loan are approved, prior
to the transfer of funds, by the Department of Finance pursuant to
appropriate fiscal standards.

The commission and department may assess and collect
reasonable fees and deposits as necessary to defray the costs of
regulation and oversight.

(D) Notwithstanding any other law, the loan authorized by
Provision 1 of Item 0855-001-0567 of the Budget Act of 2009, in
the amount of four hundred fifty-seven thousand dollars
($457,000), shall be repaid no later than July 1, 2019.

(E) The licensing fee for any person or entity that directly or
indirectly manufactures, distributes, supplies, vends, leases, or
otherwise provides supplies, devices, services, or other equipment
designed for use in the playing of a remote caller bingo game by
any nonprofit organization shall be in an amount determined by
the department, not to exceed the reasonable regulatory costs to
the department and in accordance with regulations adopted pursuant
to this chapter. Prior to the adoption of the regulations, the
nonrefundable license fee shall be the amount of the reasonable
regulatory costs to the department, not to exceed three thousand
dollars ($3,000) per year.

(r) The administrative, managerial, technical, financial, and
security personnel employed by an organization that conducts
remote caller bingo games shall apply for, obtain, and thereafter
maintain valid work permits, as defined in Section 19805 of the
Business and Professions Code.

(s) An organization that conducts remote caller bingo games
shall retain records in connection with the remote caller bingo
game for five years.

(t) (1) All equipment used for remote caller bingo shall be
certified as compliant with regulations adopted by the department
by a manufacturing expert recognized by the department.
Certifications shall be submitted to the department prior to the use
of any equipment subject to this subdivision.

(2) The department may monitor operation of the transmission
and other equipment used for remote caller bingo, and monitor the
game.

(u) (1) As used in this section, “remote caller bingo game”
means a game of bingo, as defined in subdivision (o) of Section
326.5, in which the numbers or symbols on randomly drawn plastic
balls are announced by a natural person present at the site at which
the live game is conducted, and the organization conducting the
bingo game uses audio and video technology to link any of its
in-state facilities for the purpose of transmitting the remote calling
of a live bingo game from a single location to multiple locations
owned, leased, or rented by that organization, or as described in
subdivision (o) of this section. The audio or video technology used
to link the facilities may include cable, Internet, satellite,
broadband, or telephone technology, or any other means of
electronic transmission that ensures the secure, accurate, and
simultaneous transmission of the announcement of numbers or
symbols in the game from the location at which the game is called
by a natural person to the remote location or locations at which
players may participate in the game. The drawing of each ball
bearing a number or symbol by the natural person calling the game
shall be visible to all players as the ball is drawn, including through
a simultaneous live video feed at remote locations at which players
may participate in the game.

(2) The caller in the live game must be licensed by the California
Gambling Control Commission. A game may be called by a
nonlicensed caller if the drawing of balls and calling of numbers
or symbols by that person is observed and personally supervised
by a licensed caller.

(3) Remote caller bingo games shall be played using traditional
paper or other tangible bingo cards and daubers, and shall not be
played by using electronic devices, except card-minding devices,
as described in paragraph (1) of subdivision (p) of Section 326.5.

(4) Prior to conducting a remote caller bingo game, the
organization that conducts remote caller bingo shall submit to the
department the controls, methodology, and standards of game play,
which shall include, but not be limited to, the equipment used to
select bingo numbers and create or originate cards, control or
maintenance, distribution to participating locations, and distribution
to players. Those controls, methodologies, and standards shall be
subject to prior approval by the department, provided that the
controls shall be deemed approved by the department after 90 days
from the date of submission unless disapproved.

(v) A location shall not be eligible to participate in a remote
caller bingo game if bingo games are conducted at that location
in violation of Section 326.5 or any regulation adopted by the
commission pursuant to Section 19841 of the Business and
Professions Code, including, but not limited to, a location at which
unlawful electronic devices are used.

(w) (1) The vendor of the equipment used in a remote caller
bingo game shall have its books and records audited at least
annually by an independent California certified public accountant
and shall submit the results of that audit to the department within
120 days after the close of the vendor’s fiscal year. In addition,
the department may audit the books and records of the vendor at
any time.

(2) An authorized organization that conducts remote caller bingo
games shall be audited by an independent California certified
public accountant at least annually and copies of the audit reports
shall be provided to the department within 60 days of completion
of the audit report. A city, county, or city and county shall be
provided a full copy of the audit or an audit report upon request.
The audit report shall account for the annual amount of fees paid
to financial institutions for the use and processing of credit card
sales by the authorized organization and the amount of fees for
the use and processing of credit card sales redirected from
“overhead costs” and deducted from the amount of gross revenues
awarded for prizes.

(3) The costs of the licensing and audits required by this section
shall be borne by the person or entity required to be licensed or
audited. The audit shall enumerate the receipts for remote caller
bingo, the prizes disbursed, the overhead costs, and the amount
retained by the nonprofit organization. The department may audit
the books and records of an organization that conducts remote
caller bingo games at any time.

(4) If the department identifies practices in violation of this
section, the license for the audited entity may be suspended pending
review and hearing before the commission for a final determination.

(x) (1) The provisions of this section are severable. If any
provision of this section 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.

(2) Notwithstanding paragraph (1), if paragraph (1) or (3) of
subdivision (u), or the application of either of those provisions, is
held invalid, this entire section shall be invalid.

(y) The department shall submit a report to the Legislature, on
or before January 1, 2016, on the fundraising effectiveness and
regulation of remote caller bingo, and other matters that are relevant
to the public interest regarding remote caller bingo.

(z) The following definitions apply for purposes of this section:

(1) “Commission” means the California Gambling Control
Commission.

(2) “Department” means the Department of Justice.

(3) “Person” includes a natural person, corporation, limited
liability company, partnership, trust, joint venture, association, or
any other business organization.

(aa) This section shall become inoperative on July 1, 2016, and,
as of January 1, 2017, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2017, deletes or
extends the dates on which it becomes inoperative and is repealed.

SEC. 122.  

Section 487a of the Penal Code is amended to read:

487a.  

(a) Every person who feloniously steals, takes, carries,
leads, or drives away any horse, mare, gelding, any bovine animal,
any caprine animal, mule, jack, jenny, sheep, lamb, hog, sow, boar,
gilt, barrow, or pig, which is the personal property of another, or
who fraudulently appropriates that same property which has been
entrusted to him or her, or who knowingly and designedly, by any
false or fraudulent representation or pretense, defrauds any other
person of that same property, or who causes or procures others to
report falsely of his or her wealth or mercantile character and by
thus imposing upon any person, obtains credit and thereby
fraudulently gets or obtains possession of that same property, is
guilty of grand theft.

(b) Every person who shall feloniously steal, take, transport or
carry the carcass of any bovine, caprine, equine, ovine, or suine
animal or of any mule, jack or jenny, which is the personal property
of another, or who shall fraudulently appropriate such property
which has been entrusted to begin delete him, end delete begin insert him or her, end insert is guilty of grand
theft.

(c) Every person who shall feloniously steal, take, transport, or
carry any portion of the carcass of any bovine, caprine, equine,
ovine, or suine animal or of any mule, jack, or jenny, which has
been killed without the consent of the owner thereof, is guilty of
grand theft.

SEC. 123.  

Section 519 of the Penal Code is amended to read:

519.  

Fear, such as will constitute extortion, may be induced
by a begin delete threat, either end delete begin insert threat of any of the following end insert :

1. To do an unlawful injury to the person or property of the
individual threatened or of a third begin delete person; or, end delete begin insert person. end insert

2. To accuse the individual threatened, or a relative of his or
her, or begin insert a end insert member of his or her family, of a begin delete crime; or, end delete begin insert crime. end insert

3. To expose, or to impute to him, her, or them a deformity,
disgrace, or begin delete crime; or, end delete begin insert crime. end insert

4. To expose a secret affecting him, her, or begin delete them; or, end delete begin insert them. end insert

5. To report his, her, or their immigration status or suspected
immigration status.

SEC. 124.  

Section 646.91 of the Penal Code is amended to
read:

646.91.  

(a) Notwithstanding any other law, a judicial officer
may issue an ex parte emergency protective order if a peace officer,
as defined in Section 830.1, 830.2, or 830.32, asserts reasonable
grounds to believe that a person is in immediate and present danger
of stalking based upon the person’s allegation that he or she has
been willfully, maliciously, and repeatedly followed or harassed
by another person who has made a credible threat with the intent
of placing the person who is the target of the threat in reasonable
fear for his or her safety, or the safety of his or her immediate
family, within the meaning of Section 646.9.

(b) A peace officer who requests an emergency protective order
shall reduce the order to writing and sign it.

(c) An emergency protective order shall include all of the
following:

(1) A statement of the grounds asserted for the order.

(2) The date and time the order expires.

(3) The address of the superior court for the district or county
in which the protected party resides.

(4) The following statements, which shall be printed in English
and Spanish:

(A) “To the protected person: This order will last until the date
and time noted above. If you wish to seek continuing protection,
you will have to apply for an order from the court at the address
noted above. You may seek the advice of an attorney as to any
matter connected with your application for any future court orders.
The attorney should be consulted promptly so that the attorney
may assist you in making your application.”

(B) “To the restrained person: This order will last until the date
and time noted above. The protected party may, however, obtain
a more permanent restraining order from the court. You may seek
the advice of an attorney as to any matter connected with the
application. The attorney should be consulted promptly so that the
attorney may assist you in responding to the application. You begin delete may end delete
begin insert shall end insert not own, possess, purchase, or receive, or attempt to purchase
or receive, a firearm while this order is in effect.”

(d) An emergency protective order may be issued under this
section only if the judicial officer finds both of the following:

(1) That reasonable grounds have been asserted to believe that
an immediate and present danger of stalking, as defined in Section
646.9, exists.

(2) That an emergency protective order is necessary to prevent
the occurrence or reoccurrence of the stalking activity.

(e) An emergency protective order may include either of the
following specific orders as appropriate:

(1) A harassment protective order as described in Section 527.6
of the Code of Civil Procedure.

(2) A workplace violence protective order as described in
Section 527.8 of the Code of Civil Procedure.

(f) An emergency protective order shall be issued without
prejudice to any person.

(g) An emergency protective order expires at the earlier of the
following times:

(1) The close of judicial business on the fifth court day following
the day of its issuance.

(2) The seventh calendar day following the day of its issuance.

(h) A peace officer who requests an emergency protective order
shall do all of the following:

(1) Serve the order on the restrained person, if the restrained
person can reasonably be located.

(2) Give a copy of the order to the protected person, or, if the
protected person is a minor child, to a parent or guardian of the
protected child if the parent or guardian can reasonably be located,
or to a person having temporary custody of the child.

(3) File a copy of the order with the court as soon as practicable
after issuance.

(4) Have the order entered into the computer database system
for protective and restraining orders maintained by the Department
of Justice.

(i) A peace officer shall use every reasonable means to enforce
an emergency protective order.

(j) A peace officer who acts in good faith to enforce an
emergency protective order is not civilly or criminally liable.

(k) A peace officer described in subdivision (a) or (b) of Section
830.32 who requests an emergency protective order pursuant to
this section shall also notify the sheriff or police chief of the city
in whose jurisdiction the peace officer’s college or school is located
after issuance of the order.

(l) “Judicial officer,” as used in this section, means a judge,
commissioner, or referee.

(m) A person subject to an emergency protective order under
this section shall not own, possess, purchase, or receive a firearm
while the order is in effect.

(n)  begin delete Nothing in this end delete begin insert This end insert section shall begin insert not end insert be construed to permit
a court to issue an emergency protective order prohibiting speech
or other activities that are constitutionally protected or protected
by the laws of this state or by the United States or activities
occurring during a labor dispute, as defined by Section 527.3 of
the Code of Civil Procedure, including, but not limited to, picketing
and hand billing.

(o) The Judicial Council shall develop forms, instructions, and
rules for the scheduling of hearings and other procedures
established pursuant to this section.

(p) Any intentional disobedience of any emergency protective
order granted under this section is punishable pursuant to Section
166. begin delete Nothing in this end delete begin insert This end insert subdivision shall begin insert not end insert be construed to
prevent punishment under Section 646.9, in lieu of punishment
under this section, if a violation of Section 646.9 is also pled and
proven.

SEC. 125.  

Section 647 of the Penal Code is amended to read:

647.  

Except as provided in subdivision (l), every person who
commits any of the following acts is guilty of disorderly conduct,
a misdemeanor:

(a) Who solicits anyone to engage in or who engages in lewd
or dissolute conduct in any public place or in any place open to
the public or exposed to public view.

(b) Who solicits or who agrees to engage in or who engages in
any act of prostitution. A person agrees to engage in an act of
prostitution when, with specific intent to so engage, he or she
manifests an acceptance of an offer or solicitation to so engage,
regardless of whether the offer or solicitation was made by a person
who also possessed the specific intent to engage in prostitution.
begin delete No end delete begin insert An end insert agreement to engage in an act of prostitution shall begin insert not end insert
constitute a violation of this subdivision unless some act, in
addition to the agreement, is done within this state in furtherance
of the commission of an act of prostitution by the person agreeing
to engage in that act. As used in this subdivision, “prostitution”
includes any lewd act between persons for money or other
consideration.

(c) Who accosts other persons in any public place or in any
place open to the public for the purpose of begging or soliciting
alms.

(d) Who loiters in or about any toilet open to the public for the
purpose of engaging in or soliciting any lewd or lascivious or any
unlawful act.

(e) Who lodges in any building, structure, vehicle, or place,
whether public or private, without the permission of the owner or
person entitled to the possession or in control of it.

(f) Who is found in any public place under the influence of
intoxicating liquor, any drug, controlled substance, toluene, or any
combination of any intoxicating liquor, drug, controlled substance,
or toluene, in a condition that he or she is unable to exercise care
for his or her own safety or the safety of others, or by reason of
his or her being under the influence of intoxicating liquor, any
drug, controlled substance, toluene, or any combination of any
intoxicating liquor, drug, or toluene, interferes with or obstructs
or prevents the free use of any street, sidewalk, or other public
way.

(g) When a person has violated subdivision (f), a peace officer,
if he or she is reasonably able to do so, shall place the person, or
cause him or her to be placed, in civil protective custody. The
person shall be taken to a facility, designated pursuant to Section
5170 of the Welfare and Institutions Code, for the 72-hour
treatment and evaluation of inebriates. A peace officer may place
a person in civil protective custody with that kind and degree of
force which would be lawful were he or she effecting an arrest for
a misdemeanor without a warrant. A person who has been placed
in civil protective custody shall not thereafter be subject to any
criminal prosecution or juvenile court proceeding based on the
facts giving rise to this placement. This subdivision shall not apply
to the following persons:

(1) Any person who is under the influence of any drug, or under
the combined influence of intoxicating liquor and any drug.

(2) Any person who a peace officer has probable cause to believe
has committed any felony, or who has committed any misdemeanor
in addition to subdivision (f).

(3) Any person who a peace officer in good faith believes will
attempt escape or will be unreasonably difficult for medical
personnel to control.

(h) Who loiters, prowls, or wanders upon the private property
of another, at any time, without visible or lawful business with the
owner or occupant. As used in this subdivision, “loiter” means to
delay or linger without a lawful purpose for being on the property
and for the purpose of committing a crime as opportunity may be
discovered.

(i) Who, while loitering, prowling, or wandering upon the private
property of another, at any time, peeks in the door or window of
any inhabited building or structure, without visible or lawful
business with the owner or occupant.

(j) (1) Any person who looks through a hole or opening, into,
or otherwise views, by means of any instrumentality, including,
but not limited to, a periscope, telescope, binoculars, camera,
motion picture camera, camcorder, or mobile phone, the interior
of a bedroom, bathroom, changing room, fitting room, dressing
room, or tanning booth, or the interior of any other area in which
the occupant has a reasonable expectation of privacy, with the
intent to invade the privacy of a person or persons inside. This
subdivision shall not apply to those areas of a private business
used to count currency or other negotiable instruments.

(2) Any person who uses a concealed camcorder, motion picture
camera, or photographic camera of any type, to secretly videotape,
film, photograph, or record by electronic means, another,
identifiable person under or through the clothing being worn by
that other person, for the purpose of viewing the body of, or the
undergarments worn by, that other person, without the consent or
knowledge of that other person, with the intent to arouse, appeal
to, or gratify the lust, passions, or sexual desires of that person and
invade the privacy of that other person, under circumstances in
which the other person has a reasonable expectation of privacy.

(3) (A) Any person who uses a concealed camcorder, motion
picture camera, or photographic camera of any type, to secretly
videotape, film, photograph, or record by electronic means, another,
identifiable person who may be in a state of full or partial undress,
for the purpose of viewing the body of, or the undergarments worn
by, that other person, without the consent or knowledge of that
other person, in the interior of a bedroom, bathroom, changing
room, fitting room, dressing room, or tanning booth, or the interior
of any other area in which that other person has a reasonable
expectation of privacy, with the intent to invade the privacy of that
other person.

(B) Neither of the following is a defense to the crime specified
in this paragraph:

(i) The defendant was a cohabitant, landlord, tenant, cotenant,
employer, employee, or business partner or associate of the victim,
or an agent of any of these.

(ii) The victim was not in a state of full or partial undress.

(4) (A) Any person who photographs or records by any means
the image of the intimate body part or parts of another identifiable
person, under circumstances where the parties agree or understand
that the image shall remain private, and the person subsequently
distributes the image taken, with the intent to cause serious
emotional distress, and the depicted person suffers serious
emotional distress.

(B) As used in this paragraph, begin delete intimate end delete begin insert “intimate end insert body begin delete part end delete
begin insert part end insert begin insert ” end insert means any portion of the genitals, and in the case of a female,
also includes any portion of the breasts below the top of the areola,
that is either uncovered or visible through less than fully opaque
clothing.

(C)  begin delete Nothing in this end delete begin insert This end insert subdivision begin delete precludes end delete begin insert shall not preclude end insert
punishment under any section of law providing for greater
punishment.

(k) In any accusatory pleading charging a violation of
subdivision (b), if the defendant has been once previously convicted
of a violation of that subdivision, the previous conviction shall be
charged in the accusatory pleading. If the previous conviction is
found to be true by the jury, upon a jury trial, or by the court, upon
a court trial, or is admitted by the defendant, the defendant shall
be imprisoned in a county jail for a period of not less than 45 days
and shall not be eligible for release upon completion of sentence,
on probation, on parole, on work furlough or work release, or on
any other basis until he or she has served a period of not less than
45 days in a county jail. In all cases in which probation is granted,
the court shall require as a condition thereof that the person be
confined in a county jail for at least 45 days. In no event does the
court have the power to absolve a person who violates this
subdivision from the obligation of spending at least 45 days in
confinement in a county jail.

In any accusatory pleading charging a violation of subdivision
(b), if the defendant has been previously convicted two or more
times of a violation of that subdivision, each of these previous
convictions shall be charged in the accusatory pleading. If two or
more of these previous convictions are found to be true by the jury,
upon a jury trial, or by the court, upon a court trial, or are admitted
by the defendant, the defendant shall be imprisoned in a county
jail for a period of not less than 90 days and shall not be eligible
for release upon completion of sentence, on probation, on parole,
on work furlough or work release, or on any other basis until he
or she has served a period of not less than 90 days in a county jail.
In all cases in which probation is granted, the court shall require
as a condition thereof that the person be confined in a county jail
for at least 90 days. In no event does the court have the power to
absolve a person who violates this subdivision from the obligation
of spending at least 90 days in confinement in a county jail.

In addition to any punishment prescribed by this section, a court
may suspend, for not more than 30 days, the privilege of the person
to operate a motor vehicle pursuant to Section 13201.5 of the
Vehicle Code for any violation of subdivision (b) that was
committed within 1,000 feet of a private residence and with the
use of a vehicle. In lieu of the suspension, the court may order a
person’s privilege to operate a motor vehicle restricted, for not
more than six months, to necessary travel to and from the person’s
place of employment or education. If driving a motor vehicle is
necessary to perform the duties of the person’s employment, the
court may also allow the person to drive in that person’s scope of
employment.

(l) (1) A second or subsequent violation of subdivision (j) is
punishable by imprisonment in a county jail not exceeding one
year, or by a fine not exceeding two thousand dollars ($2,000), or
by both that fine and imprisonment.

(2) If the victim of a violation of subdivision (j) was a minor at
the time of the offense, the violation is punishable by imprisonment
in a county jail not exceeding one year, or by a fine not exceeding
two thousand dollars ($2,000), or by both that fine and
imprisonment.

SEC. 126.  

Section 830.3 of the Penal Code, as added by Section
38 of Chapter 515 of the Statutes of 2013, is amended to read:

830.3.  

The following persons are peace officers whose authority
extends to any place in the state for the purpose of performing
their primary duty or when making an arrest pursuant to Section
836 as to any public offense with respect to which there is
immediate danger to person or property, or of the escape of the
perpetrator of that offense, or pursuant to Section 8597 or 8598 of
the Government Code. These peace officers may carry firearms
only if authorized and under those terms and conditions as specified
by their employing agencies:

(a) Persons employed by the Division of Investigation of the
Department of Consumer Affairs and investigators of the Board
of Dental Examiners, who are designated by the Director of
Consumer Affairs, provided that the primary duty of these peace
officers shall be the enforcement of the law as that duty is set forth
in Section 160 of the Business and Professions Code.

(b) Voluntary fire wardens designated by the Director of
Forestry and Fire Protection pursuant to Section 4156 of the Public
Resources Code, provided that the primary duty of these peace
officers shall be the enforcement of the law as that duty is set forth
in Section 4156 of that code.

(c) Employees of the Department of Motor Vehicles designated
in Section 1655 of the Vehicle Code, provided that the primary
duty of these peace officers shall be the enforcement of the law as
that duty is set forth in Section 1655 of that code.

(d) Investigators of the California Horse Racing Board
designated by the board, provided that the primary duty of these
peace officers shall be the enforcement of Chapter 4 (commencing
with Section 19400) of Division 8 of the Business and Professions
Code and Chapter 10 (commencing with Section 330) of Title 9
of Part 1 of this code.

(e) The State Fire Marshal and assistant or deputy state fire
marshals appointed pursuant to Section 13103 of the Health and
Safety Code, provided that the primary duty of these peace officers
shall be the enforcement of the law as that duty is set forth in
Section 13104 of that code.

(f) Inspectors of the food and drug section designated by the
chief pursuant to subdivision (a) of Section 106500 of the Health
and Safety Code, provided that the primary duty of these peace
officers shall be the enforcement of the law as that duty is set forth
in Section 106500 of that code.

(g) All investigators of the Division of Labor Standards
Enforcement designated by the Labor Commissioner, provided
that the primary duty of these peace officers shall be the
enforcement of the law as prescribed in Section 95 of the Labor
Code.

(h) All investigators of the State Departments of Health Care
Services, Public Health, Social Services, begin delete Mental Health, end delete begin insert State
Hospitals, end insert and Alcohol and Drug Programs, the Department of
Toxic Substances Control, the Office of Statewide Health Planning
and Development, and the Public Employees’ Retirement System,
provided that the primary duty of these peace officers shall be the
enforcement of the law relating to the duties of his or her
department or office. Notwithstanding any other begin delete provision of end delete law,
investigators of the Public Employees’ Retirement System shall
not carry firearms.

(i) The Chief of the Bureau of Fraudulent Claims of the
Department of Insurance and those investigators designated by the
chief, provided that the primary duty of those investigators shall
be the enforcement of Section 550.

(j) Employees of the Department of Housing and Community
Development designated under Section 18023 of the Health and
Safety Code, provided that the primary duty of these peace officers
shall be the enforcement of the law as that duty is set forth in
Section 18023 of that code.

(k) Investigators of the office of the Controller, provided that
the primary duty of these investigators shall be the enforcement
of the law relating to the duties of that office. Notwithstanding any
other law, except as authorized by the Controller, the peace officers
designated pursuant to this subdivision shall not carry firearms.

(l) Investigators of the Department of Business Oversight
designated by the Commissioner of Business Oversight, provided
that the primary duty of these investigators shall be the enforcement
of the provisions of law administered by the Department of
Business Oversight. Notwithstanding any other begin delete provision of end delete law,
the peace officers designated pursuant to this subdivision shall not
carry firearms.

(m) Persons employed by the begin delete Contractors end delete begin insert Contractors end insert begin insert ’ end insert State
License Board designated by the Director of Consumer Affairs
pursuant to Section 7011.5 of the Business and Professions Code,
provided that the primary duty of these persons shall be the
enforcement of the law as that duty is set forth in Section 7011.5,
and in Chapter 9 (commencing with Section 7000) of Division 3,
of that code. The Director of Consumer Affairs may designate as
peace officers not more than 12 persons who shall at the time of
their designation be assigned to the special investigations unit of
the board. Notwithstanding any other begin delete provision of end delete law, the persons
designated pursuant to this subdivision shall not carry firearms.

(n) The Chief and coordinators of the Law Enforcement Branch
of the Office of Emergency Services.

(o) Investigators of the office of the Secretary of State designated
by the Secretary of State, provided that the primary duty of these
peace officers shall be the enforcement of the law as prescribed
in Chapter 3 (commencing with Section 8200) of Division 1 of
Title 2 of, and Section 12172.5 of, the Government Code.
Notwithstanding any other begin delete provision of end delete law, the peace officers
designated pursuant to this subdivision shall not carry firearms.

(p) The Deputy Director for Security designated by Section
8880.38 of the Government Code, and all lottery security personnel
assigned to the California State Lottery and designated by the
director, provided that the primary duty of any of those peace
officers shall be the enforcement of the laws related to begin delete assuring end delete
begin insert ensuring end insert the integrity, honesty, and fairness of the operation and
administration of the California State Lottery.

(q) Investigators employed by the Investigation Division of the
Employment Development Department designated by the director
of the department, provided that the primary duty of those peace
officers shall be the enforcement of the law as that duty is set forth
in Section 317 of the Unemployment Insurance Code.

Notwithstanding any other begin delete provision of end delete law, the peace officers
designated pursuant to this subdivision shall not carry firearms.

(r) The chief and assistant chief of museum security and safety
of the California Science Center, as designated by the executive
director pursuant to Section 4108 of the Food and Agricultural
Code, provided that the primary duty of those peace officers shall
be the enforcement of the law as that duty is set forth in Section
4108 of the Food and Agricultural Code.

(s) Employees of the Franchise Tax Board designated by the
board, provided that the primary duty of these peace officers shall
be the enforcement of the law as set forth in Chapter 9
(commencing with Section 19701) of Part 10.2 of Division 2 of
the Revenue and Taxation Code.

(t) Notwithstanding any other provision of this section, a peace
officer authorized by this section shall not be authorized to carry
firearms by his or her employing agency until that agency has
adopted a policy on the use of deadly force by those peace officers,
and until those peace officers have been instructed in the employing
agency’s policy on the use of deadly force.

Every peace officer authorized pursuant to this section to carry
firearms by his or her employing agency shall qualify in the use
of the firearms at least every six months.

(u) Investigators of the Department of Managed Health Care
designated by the Director of the Department of Managed Health
Care, provided that the primary duty of these investigators shall
be the enforcement of the provisions of laws administered by the
Director of the Department of Managed Health Care.
Notwithstanding any other begin delete provision of end delete law, the peace officers
designated pursuant to this subdivision shall not carry firearms.

(v) The Chief, Deputy Chief, supervising investigators, and
investigators of the Office of Protective Services of the State
Department of Developmental Services, provided that the primary
duty of each of those persons shall be the enforcement of the law
relating to the duties of his or her department or office.

(w) This section shall become operative July 1, 2014.

SEC. 127.  

Section 1208 of the Penal Code is amended to read:

1208.  

(a) (1) The provisions of this section, insofar as they
relate to employment, shall be operative in any county in which
the board of supervisors by ordinance finds, on the basis of
employment conditions, the state of the county jail facilities, and
other pertinent circumstances, that the operation of this section,
insofar as it relates to employment, in that county is feasible. The
provisions of this section, insofar as they relate to job training,
shall be operative in any county in which the board of supervisors
by ordinance finds, on the basis of job training conditions, the state
of the county jail facilities, and other pertinent circumstances, that
the operation of this section, insofar as it relates to job training, in
that county is feasible. The provisions of this section, insofar as
they relate to education, shall be operative in any county in which
the board of supervisors by ordinance finds, on the basis of
education conditions, the state of the county jail facilities, and
other pertinent circumstances, that the operation of this section,
insofar as it relates to education, in that county is feasible. In any
ordinance the board shall prescribe whether the sheriff, the
probation officer, the director of the county department of
corrections, or the superintendent of a county industrial farm or
industrial road camp in the county shall perform the functions of
the work furlough administrator. The board may, in that ordinance,
provide for the performance of any or all functions of the work
furlough administrator by any one or more of those persons, acting
separately or jointly as to any of the functions; and may, by a
subsequent ordinance, revise the provisions within the authorization
of this section. The board of supervisors may also terminate the
operation of this section, either with respect to employment, job
training, or education in the county begin insert , end insert if begin delete it end delete begin insert the board end insert finds by
ordinance that because of changed circumstances, the operation
of this section, either with respect to employment, job training, or
education in that county begin insert , end insert is no longer feasible.

(2) Notwithstanding any other begin delete provision of end delete law, the board of
supervisors may by ordinance designate a facility for confinement
of prisoners classified for the work furlough program and designate
the work furlough administrator as the custodian of the facility.
The work furlough administrator may operate the work furlough
facility or, with the approval of the board of supervisors, administer
the work furlough facility pursuant to written contracts with
appropriate public or private agencies or private entities. No agency
or private entity may operate a work furlough program or facility
without a written contract with the work furlough administrator,
and no agency or private entity entering into a written contract
may itself employ any person who is in the work furlough program.
The sheriff or director of the county department of corrections, as
the case may be, is authorized to transfer custody of prisoners to
the work furlough administrator to be confined in a facility for the
period during which they are in the work furlough program.

(3) All privately operated local work furlough facilities and
programs shall be under the jurisdiction of, and subject to the terms
of a written contract entered into with, the work furlough
administrator. Each contract shall include, but not be limited to, a
provision whereby the private agency or entity agrees to operate
in compliance with all appropriate state and local building, zoning,
health, safety, and fire statutes, ordinances, and regulations and
the minimum jail standards for Type IV facilities as established
by regulations adopted by the Board of State and Community
Corrections, and a provision whereby the private agency or entity
agrees to operate in compliance with Section 1208.2, which
provides that no eligible person shall be denied consideration for,
or be removed from, participation in a work furlough program
because of an inability to pay all or a portion of the program fees.
The private agency or entity shall select and train its personnel in
accordance with selection and training requirements adopted by
the Board of State and Community Corrections as set forth in
Subchapter 1 (commencing with Section 100) of Chapter 1 of
Division 1 of Title 15 of the California Code of Regulations.
Failure to comply with the appropriate health, safety, and fire laws
or minimum jail standards adopted by the board may be cause for
termination of the contract. Upon discovery of a failure to comply
with these requirements, the work furlough administrator shall
notify the privately operated program director that the contract
may be canceled if the specified deficiencies are not corrected
within 60 days.

(4) All private work furlough facilities and programs shall be
inspected biennially by the Board of State and Community
Corrections unless the work furlough administrator requests an
earlier inspection pursuant to Section 6031.1. Each private agency
or entity shall pay a fee to the Board of State and Community
Corrections commensurate with the cost of those inspections and
a fee commensurate with the cost of the initial review of the
facility.

(b) When a person is convicted and sentenced to the county jail,
or is imprisoned in the county jail for nonpayment of a fine, for
contempt, or as a condition of probation for any criminal offense,
the work furlough administrator may, if he or she concludes that
the person is a fit subject to continue in his or her regular
employment, direct that the person be permitted to continue in that
employment, if that is compatible with the requirements of
subdivision (c), or may authorize the person to secure employment
for himself or herself, unless the court at the time of sentencing or
committing has ordered that the person not be granted work
furloughs. The work furlough administrator may, if he or she
concludes that the person is a fit subject to continue in his or her
job training program, direct that the person be permitted to continue
in that job training program, if that is compatible with the
requirements of subdivision (c), or may authorize the person to
secure local job training for himself or herself, unless the court at
the time of sentencing has ordered that person not be granted work
furloughs. The work furlough administrator may, if he or she
concludes that the person is a fit subject to continue in his or her
regular educational program, direct that the person be permitted
to continue in that educational program, if that is compatible with
the requirements of subdivision (c), or may authorize the person
to secure education for himself or herself, unless the court at the
time of sentencing has ordered that person not be granted work
furloughs.

(c) If the work furlough administrator so directs that the prisoner
be permitted to continue in his or her regular employment, job
training, or educational program, the administrator shall arrange
for a continuation of that employment or for that job training or
education, so far as possible without interruption. If the prisoner
does not have regular employment or a regular job training or
educational program, and the administrator has authorized the
prisoner to secure employment, job training, or education for
himself or herself, the prisoner may do so, and the administrator
may assist the prisoner in doing so. Any employment, job training,
or education so secured shall be suitable for the prisoner. The
employment, and the job training or educational program if it
includes earnings by the prisoner, shall be at a wage at least as
high as the prevailing wage for similar work in the area where the
work is performed and in accordance with the prevailing working
conditions in that area. In no event may any employment, job
training, or educational program involving earnings by the prisoner
be permitted where there is a labor dispute in the establishment in
which the prisoner is, or is to be, employed, trained, or educated.

(d) (1) Whenever the prisoner is not employed or being trained
or educated and between the hours or periods of employment,
training, or education, the prisoner shall be confined in the facility
designated by the board of supervisors for work furlough
confinement unless the work furlough administrator directs
otherwise. If the prisoner is injured during a period of employment,
job training, or education, the work furlough administrator shall
have the authority to release him or her from the facility for
continued medical treatment by private physicians or at medical
facilities at the expense of the employer, workers’ compensation
insurer, or the prisoner. The release shall not be construed as
assumption of liability by the county or work furlough
administrator for medical treatment obtained.

(2) The work furlough administrator may release any prisoner
classified for the work furlough program for a period not to exceed
72 hours for medical, dental, or psychiatric care, or for family
emergencies or pressing business which would result in severe
hardship if the release were not granted, or to attend those activities
as the administrator deems may effectively promote the prisoner’s
successful return to the community, including, but not limited to,
an attempt to secure housing, employment, entry into educational
programs, or participation in community programs.

(e) The earnings of the prisoner may be collected by the work
furlough administrator, and it shall be the duty of the prisoner’s
employer to transmit the wages to the administrator at the latter’s
request. Earnings levied upon pursuant to writ of execution or in
other lawful manner shall not be transmitted to the administrator.
If the administrator has requested transmittal of earnings prior to
levy, that request shall have priority. In a case in which the
functions of the administrator are performed by a sheriff, and the
sheriff receives a writ of execution for the earnings of a prisoner
subject to this section but has not yet requested transmittal of the
prisoner’s earnings pursuant to this section, the sheriff shall first
levy on the earnings pursuant to the writ. When an employer or
educator transmits earnings to the administrator pursuant to this
subdivision, the sheriff shall have no liability to the prisoner for
those earnings. From the earnings the administrator shall pay the
prisoner’s board and personal expenses, both inside and outside
the jail, and shall deduct so much of the costs of administration of
this section as is allocable to the prisoner or if the prisoner is unable
to pay that sum, a lesser sum as is reasonable, and, in an amount
determined by the administrator, shall pay the support of the
prisoner’s dependents, if any. If sufficient funds are available after
making the foregoing payments, the administrator may, with the
consent of the prisoner, pay, in whole or in part, the preexisting
debts of the prisoner. Any balance shall be retained until the
prisoner’s discharge. Upon discharge the balance shall be paid to
the prisoner.

(f) The prisoner shall be eligible for time credits pursuant to
Sections 4018 and 4019.

(g)  begin delete In the event end delete begin insert If end insert the prisoner violates the conditions laid down
for his or her conduct, custody, job training, education, or
employment, the work furlough administrator may order the
balance of the prisoner’s sentence to be spent in actual confinement.

(h) Willful failure of the prisoner to return to the place of
confinement not later than the expiration of any period during
which he or she is authorized to be away from the place of
confinement pursuant to this section is punishable as provided in
Section 4532.

(i) The court may recommend or refer a person to the work
furlough administrator for consideration for placement in the work
furlough program or a particular work furlough facility. The
recommendation or referral of the court shall be given great weight
in the determination of acceptance or denial for placement in the
work furlough program or a particular work furlough facility.

(j) As used in this section, the following definitions apply:

(1) “Education” includes vocational and educational training
and counseling, and psychological, drug abuse, alcoholic, and
other rehabilitative counseling.

(2) “Educator” includes a person or institution providing that
training or counseling.

(3) “Employment” includes care of children, including the
daytime care of children of the prisoner.

(4) “Job training” may include, but shall not be limited to, job
training assistance.

(k) This section shall be known and may be cited as the “Cobey
Work Furlough Law.”

SEC. 128.  

Section 1275 of the Penal Code is amended to read:

1275.  

(a) (1) In setting, reducing, or denying bail, a judge or
magistrate shall take into consideration the protection of the public,
the seriousness of the offense charged, the previous criminal record
of the defendant, and the probability of his or her appearing at trial
or begin insert at a end insert hearing of the case. The public safety shall be the primary
consideration. In setting bail, a judge or magistrate may consider
factors such as the information included in a report prepared in
accordance with Section 1318.1.

(2) In considering the seriousness of the offense charged, a judge
or magistrate shall include consideration of the alleged injury to
the victim, and alleged threats to the victim or a witness to the
crime charged, the alleged use of a firearm or other deadly weapon
in the commission of the crime charged, and the alleged use or
possession of controlled substances by the defendant.

(b) In considering offenses wherein a violation of Chapter 6
(commencing with Section 11350) of Division 10 of the Health
and Safety Code is alleged, a judge or magistrate shall consider
the following: (1) the alleged amounts of controlled substances
involved in the commission of the offense, and (2) whether the
defendant is currently released on bail for an alleged violation of
Chapter 6 (commencing with Section 11350) of Division 10 of the
Health and Safety Code.

(c) Before a court reduces bail to below the amount established
by the bail schedule approved for the county, in accordance with
subdivisions (b) and (c) of Section 1269b, for a person charged
with a serious felony, as defined in subdivision (c) of Section
1192.7, or a violent felony, as defined in subdivision (c) of Section
667.5, the court shall make a finding of unusual circumstances and
shall set forth those facts on the record. For purposes of this
subdivision, “unusual circumstances” does not include the fact
that the defendant has made all prior court appearances or has not
committed any new offenses.

SEC. 129.  

Section 2053.1 of the Penal Code is amended to
read:

2053.1.  

(a) The Secretary of the Department of Corrections
and Rehabilitation shall implement in every state prison literacy
programs that are designed to ensure that upon parole inmates are
able to achieve the goals contained in this section. The department
shall prepare an implementation plan for this program, and shall
request the necessary funds to implement this program as follows:

(1) The department shall offer academic programming
throughout an inmate’s incarceration that shall focus on increasing
the reading ability of an inmate to at least a 9th grade level.

(2) For an inmate reading at a 9th grade level or higher, the
department shall focus on helping the inmate obtain a general
education development certificate begin insert , end insert or its equivalent begin insert , end insert or begin insert a end insert high
school diploma.

(3) The department shall offer college programs through
voluntary education programs or begin insert their end insert equivalent begin delete programs end delete .

(4) While the department shall offer education to target
populations, priority shall be given to those with a criminogenic
need for education, those who have a need based on their
educational achievement level, or other factors as determined by
the department.

(b) In complying with the requirements of this section, the
department shall give strong consideration to computer-assisted
training and other innovations that have proven to be effective in
reducing illiteracy among disadvantaged adults.

SEC. 130.  

Section 6027 of the Penal Code is amended to read:

6027.  

(a) It shall be the duty of the Board of State and
Community Corrections to collect and maintain available
information and data about state and community correctional
policies, practices, capacities, and needs, including, but not limited
to, prevention, intervention, suppression, supervision, and
incapacitation, as they relate to both adult corrections, juvenile
justice, and gang problems. The board shall seek to collect and
make publicly available up-to-date data and information reflecting
the impact of state and community correctional, juvenile justice,
and gang-related policies and practices enacted in the state, as well
as information and data concerning promising and evidence-based
practices from other jurisdictions.

(b) Consistent with subdivision (c) of Section 6024, the board
shall also:

(1) Develop recommendations for the improvement of criminal
justice and delinquency and gang prevention activity throughout
the state.

(2) Identify, promote, and provide technical assistance relating
to evidence-based programs, practices, and promising and
innovative projects consistent with the mission of the board.

(3) Develop definitions of key terms, including, but not limited
to, “recidivism,” “average daily population,” “treatment program
completion rates,” and any other terms deemed relevant in order
to facilitate consistency in local data collection, evaluation, and
implementation of evidence-based practices, promising
evidence-based practices, and evidence-based programs. In
developing these definitions, the board shall consult with the
following stakeholders and experts:

(A) A county supervisor or county administrative officer,
selected after conferring with the California State Association of
Counties.

(B) A county sheriff, selected after conferring with the California
State Sheriffs’ Association.

(C) A chief probation officer, selected after conferring with the
Chief Probation Officers of California.

(D) A district attorney, selected after conferring with the
California District begin delete Attorney’s end delete begin insert Attorneys end insert Association.

(E) A public defender, selected after conferring with the
California Public Defenders Association.

(F) The Secretary of the Department of Corrections and
Rehabilitation.

(G) A representative from the Administrative Office of the
Courts.

(H) A representative from a nonpartisan, nonprofit policy
institute with experience and involvement in research and data
relating to California’s criminal justice system.

(I) A representative from a nonprofit agency providing
comprehensive reentry services.

(4) Receive and disburse federal funds, and perform all
necessary and appropriate services in the performance of its duties
as established by federal acts.

(5) Develop comprehensive, unified, and orderly procedures to
ensure that applications for grants are processed fairly, efficiently,
and in a manner consistent with the mission of the board.

(6) Identify delinquency and gang intervention and prevention
grants that have the same or similar program purpose, are allocated
to the same entities, serve the same target populations, and have
the same desired outcomes for the purpose of consolidating grant
funds and programs and moving toward a begin delete unified end delete single begin insert , unified end insert
delinquency intervention and prevention grant application process
in adherence with all applicable federal guidelines and mandates.

(7) Cooperate with and render technical assistance to the
Legislature, state agencies, units of general local government,
combinations of those units, or other public or private agencies,
organizations, or institutions in matters relating to criminal justice
and delinquency prevention.

(8) Develop incentives for units of local government to develop
comprehensive regional partnerships whereby adjacent jurisdictions
pool grant funds in order to deliver services to a broader target
population and maximize the impact of state funds at the local
level.

(9) Conduct evaluation studies of the programs and activities
assisted by the federal acts.

(10) Identify and evaluate state, local, and federal gang and
youth violence suppression, intervention, and prevention programs
and strategies, along with funding for those efforts. The board shall
assess and make recommendations for the coordination of the
state’s programs, strategies, and funding that address gang and
youth violence in a manner that maximizes the effectiveness and
coordination of those programs, strategies, and resources. By
January 1, 2014, the board shall develop funding allocation policies
to ensure that within three years no less than 70 percent of funding
for gang and youth violence suppression, intervention, and
prevention programs and strategies is used in programs that begin delete utilize end delete
begin insert use end insert promising and proven evidence-based principles and practices.
The board shall communicate with local agencies and programs
in an effort to promote the best evidence-based principles and
practices for addressing gang and youth violence through
suppression, intervention, and prevention.

(11) The board shall collect from each county the plan submitted
pursuant to Section 1230.1 within two months of adoption by the
county boards of supervisors. Commencing January 1, 2013, and
annually thereafter, the board shall collect and analyze available
data regarding the implementation of the local plans and other
outcome-based measures, as defined by the board in consultation
with the Administrative Office of the Courts, the Chief Probation
Officers of California, and the California State Sheriffs’
Association. By July 1, 2013, and annually thereafter, the board
shall provide to the Governor and the Legislature a report on the
implementation of the plans described above.

(12) Commencing on and after July 1, 2012, the board, in
consultation with the Administrative Office of the Courts, the
California State Association of Counties, the California State
Sheriffs’ Association, and the Chief Probation Officers of
California, shall support the development and implementation of
first phase baseline and ongoing data collection instruments to
reflect the local impact of Chapter 15 of the Statutes of 2011,
specifically related to dispositions for felony offenders and
postrelease community supervision. The board shall make any
data collected pursuant to this paragraph available on the board’s
Internet Web site. It is the intent of the Legislature that the board
promote collaboration and the reduction of duplication of data
collection and reporting efforts where possible.

(c) The board may do either of the following:

(1) Collect, evaluate, publish, and disseminate statistics and
other information on the condition and progress of criminal justice
in the state.

(2) Perform other functions and duties as required by federal
acts, rules, regulations, or guidelines in acting as the administrative
office of the state planning agency for distribution of federal grants.

(d)  begin delete Nothing in this end delete begin insert This end insert chapter shall begin insert not end insert be construed to include,
in the provisions set forth in this section, funds already designated
to the Local Revenue Fund 2011 pursuant to Section 30025 of the
Government Code.

SEC. 131.  

Section 7442 of the Penal Code is amended to read:

7442.  

(a) The purpose of the review of local agency records,
in a representative sample of California counties, is to obtain
outcome information about the status of a sample of the children
of incarcerated parents and their caregivers.

(b) Women prisoners who participate in the survey sample of
state prisoners shall provide written permission allowing the
California Research Bureau access to their children’s records in
regard to school performance, identity of the caretaker responsible
for the child, child protective services records, public assistance
records, juvenile justice records, and medical records including
drug or alcohol use, and mental health. The California Research
Bureau shall follow appropriate procedures to ensure
confidentiality of the records and to protect the privacy of the
survey participants and their children.

(c) County agencies, including members of multidisciplinary
teams, and school districts shall permit the California Research
Bureau to have reasonable access to records, pursuant to
subdivision (b), to the extent permitted by federal law.

(d) Notwithstanding Section 10850 of the Welfare and
Institutions Code, the survey required by this section is deemed
to meet the research criteria identified in paragraph (3) of
subdivision (c) of Section begin delete 11977 end delete begin insert 11845.5 end insert of the Health and Safety
Code, and subdivision (e) of Section 5328 of the Welfare and
Institutions Code. For purposes of this study, the research is
deemed not to be harmful for the at-risk and vulnerable population
of children of women prisoners.

(e) For purposes of the study only, the California Research
Bureau is authorized to survey records, reports, and documents
described in Section 827 and in paragraph (3) of subdivision (h)
of Section 18986.4 of the Welfare and Institutions Code, and
information relative to the incidence of child abuse, as provided
by Section 11167, among children in the study sample.

(f) School districts shall permit reasonable access to directory
information by the California Research Bureau for purposes of
this study. The California Research Bureau is deemed an
appropriate organization to conduct studies for legitimate
educational interests, including improving instruction, for purposes
of paragraph (4) of subdivision (b) of Section 4906 of the
Education Code. School variables that the California Research
Bureau shall survey shall include, but not be limited to, attendance
patterns, truancy rates, achievement level, suspension and expulsion
rates, and special education referrals.

SEC. 132.  

Section 11165.15 of the Penal Code is amended to
read:

11165.15.  

For the purposes of this article, the fact that a child
is homeless or is classified as an unaccompanied begin delete minor, end delete begin insert youth, end insert as
defined in Section 11434a of the federal McKinney-Vento
Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.), is not,
in and of itself, a sufficient basis for reporting child abuse or
neglect. begin delete Nothing in this end delete begin insert This end insert section shall begin insert not end insert limit a mandated
reporter, as defined in Section 11165.7, from making a report
pursuant to Section 11166 whenever the mandated reporter has
knowledge of or observes an unaccompanied minor whom the
mandated reporter knows or reasonably suspects to be the victim
of abuse or neglect.

SEC. 133.  

Section 13701 of the Penal Code is amended to read:

13701.  

(a) Every law enforcement agency in this state shall
develop, adopt, and implement written policies and standards for
officers’ responses to domestic violence calls by January 1, 1986.
These policies shall reflect that domestic violence is alleged
criminal conduct. Further, they shall reflect existing policy that a
request for assistance in a situation involving domestic violence
is the same as any other request for assistance where violence has
occurred.

(b) The written policies shall encourage the arrest of domestic
violence offenders if there is probable cause that an offense has
been committed. These policies also shall require the arrest of an
offender, absent exigent circumstances, if there is probable cause
that a protective order issued under Chapter 4 (commencing with
Section 2040) of Part 1 of Division 6, Division 10 (commencing
with Section 6200), or Chapter 6 (commencing with Section 7700)
of Part 3 of Division 12, of the Family Code, or Section 136.2 of
this code, or by a court of any other state, a commonwealth,
territory, or insular possession subject to the jurisdiction of the
United States, a military tribunal, or a tribe has been violated.
These policies shall discourage, when appropriate, but not prohibit,
dual arrests. Peace officers shall make reasonable efforts to identify
the dominant aggressor in any incident. The dominant aggressor
is the person determined to be the most significant, rather than the
first, aggressor. In identifying the dominant aggressor, an officer
shall consider the intent of the law to protect victims of domestic
violence from continuing abuse, the threats creating fear of physical
injury, the history of domestic violence between the persons
involved, and whether either person acted in self-defense. These
arrest policies shall be developed, adopted, and implemented by
July 1, 1996. Notwithstanding subdivision (d), law enforcement
agencies shall develop these policies with the input of local
domestic violence agencies.

(c) These existing local policies and those developed shall be
in writing and shall be available to the public upon request and
shall include specific standards for the following:

(1) Felony arrests.

(2) Misdemeanor arrests.

(3) Use of citizen arrests.

(4) Verification and enforcement of temporary restraining orders
when (A) the suspect is present and (B) the suspect has fled.

(5) Verification and enforcement of stay-away orders.

(6) Cite and release policies.

(7) Emergency assistance to victims, such as medical care,
transportation to a shelter, or a hospital for treatment when
necessary, and police standbys for removing personal property
and assistance in safe passage out of the victim’s residence.

(8) Assisting victims in pursuing criminal options, such as giving
the victim the report number and directing the victim to the proper
investigation unit.

(9) Furnishing written notice to victims at the scene, including,
but not limited to, all of the following information:

(A) A statement informing the victim that despite official
restraint of the person alleged to have committed domestic
violence, the restrained person may be released at any time.

(B) A statement that, “For further information about a shelter
you may contact ____.”

(C) A statement that, “For information about other services in
the community, where available, you may contact ____.”

(D) A statement that, “For information about the California
begin delete victims’ compensation program, end delete begin insert Victims’ Compensation Program, end insert
you may contact 1-800-777-9229.”

(E) A statement informing the victim of domestic violence that
he or she may ask the district attorney to file a criminal complaint.

(F) A statement informing the victim of the right to go to the
superior court and file a petition requesting any of the following
orders for relief:

(i) An order restraining the attacker from abusing the victim
and other family members.

(ii) An order directing the attacker to leave the household.

(iii) An order preventing the attacker from entering the
residence, school, business, or place of employment of the victim.

(iv) An order awarding the victim or the other parent custody
of or visitation with a minor child or children.

(v) An order restraining the attacker from molesting or
interfering with minor children in the custody of the victim.

(vi) An order directing the party not granted custody to pay
support of minor children, if that party has a legal obligation to do
so.

(vii) An order directing the defendant to make specified debit
payments coming due while the order is in effect.

(viii) An order directing that either or both parties participate
in counseling.

(G) A statement informing the victim of the right to file a civil
suit for losses suffered as a result of the abuse, including medical
expenses, loss of earnings, and other expenses for injuries sustained
and damage to property, and any other related expenses incurred
by the victim or any agency that shelters the victim.

(H) In the case of an alleged violation of subdivision (e) of
Section 243 or Section 261, 261.5, 262, 273.5, 286, 288a, or 289,
a “Victims of Domestic Violence” card which shall include, but
is not limited to, the following information:

(i) The names and phone numbers of or local county hotlines
for, or both the phone numbers of and local county hotlines for,
local shelters for battered women and rape victim counseling
centers within the county, including those centers specified in
Section 13837, and their 24-hour counseling service telephone
numbers.

(ii) A simple statement on the proper procedures for a victim
to follow after a sexual assault.

(iii) A statement that sexual assault by a person who is known
to the victim, including sexual assault by a person who is the
spouse of the victim, is a crime.

(iv) A statement that domestic violence or assault by a person
who is known to the victim, including domestic violence or assault
by a person who is the spouse of the victim, is a crime.

(10) Writing of reports.

(d) In the development of these policies and standards, each
local department is encouraged to consult with domestic violence
experts, such as the staff of the local shelter for battered women
and their children. Departments may begin delete utilize end delete begin insert use end insert the response
guidelines developed by the commission in developing local
policies.

SEC. 134.  

Section 16970 of the Penal Code is amended to read:

16970.  

(a) As used in Sections 16790, 17505, and 30600,
“person” means an individual, partnership, corporation, limited
liability company, association, or any other group or entity,
regardless of how it was created.

(b) As used in Chapter 2 (commencing with Section 30500) of
Division 10 of Title 4, except for Section 30600 begin insert , end insert “person” means
an individual.

SEC. 135.  

Section 215 of the Probate Code is amended to read:

215.  

Where a deceased person has received or may have
received health care under Chapter 7 (commencing with Section
14000) or Chapter 8 (commencing with Section 14200) of Part 3
of Division 9 of the Welfare and Institutions Code, or was the
surviving spouse of a person who received that health care, the
estate attorney, or if there is no estate attorney, the beneficiary,
the personal representative, or the person in possession of property
of the decedent shall give the Director of Health begin insert Care end insert Services
notice of the decedent’s death not later than 90 days after the date
of death. The notice shall include a copy of the decedent’s death
certificate. The notice shall be given as provided in Section 1215,
addressed to the director at the Sacramento office of the director.

SEC. 136.  

Section 2574 of the Probate Code is amended to
read:

2574.  

(a) Subject to subdivision (b), the guardian or
conservator, without authorization of the court, may invest funds
of the estate pursuant to this section in:

(1) Direct obligations of the United States, or of the State of
California, maturing not later than five years from the date of
making the investment.

(2) United States Treasury bonds redeemable at par value on
the death of the holder for payment of federal estate taxes,
regardless of maturity date.

(3)  Securities listed on an established stock or bond exchange
in the United States which are purchased on such exchange.

(4) Eligible securities for the investment of surplus state moneys
as provided for in Section 16430 of the Government Code.

(5) An interest in a money market mutual fund registered under
the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et
seq.) or an investment vehicle authorized for the collective
investment of trust funds pursuant to Section 9.18 of Part 9 of Title
12 of the Code of Federal Regulations, the portfolios of which are
limited to United States government obligations maturing not later
than five years from the date of investment and to repurchase
agreements fully collateralized by United States government
obligations.

(6) Units of a common trust fund described in Section begin delete 1564 end delete
begin insert 1585 end insert of the Financial Code. The common trust fund shall have as
its objective investment primarily in short-term fixed income
obligations and shall be permitted to value investments at cost
pursuant to regulations of the appropriate regulatory authority.

(b) In making and retaining investments made under this section,
the guardian or conservator shall take into consideration the
circumstances of the estate, indicated cash needs, and, if reasonably
ascertainable, the date of the prospective termination of the
guardianship or conservatorship.

(c)  begin delete Nothing in this end delete begin insert This end insert section begin delete limits end delete begin insert shall not limit end insert the authority
of the guardian or conservator to seek court authorization for any
investment, or to make other investments with court authorization,
as provided in this division.

SEC. 137.  

The heading of Chapter 4 (commencing with Section
3600) of Part 8 of Division 4 of the Probate Code is amended to
read:

 

Chapter  4. Money or Property Paid or Delivered
Pursuant to Compromise or Judgment for Minor or
begin delete Incompetent end delete begin insert Disabled end insert Person

 

SEC. 138.  

Section 6325 of the Probate Code is amended to
read:

6325.  

(a) The court in which the proceedings are pending for
administration of the estate of the decedent has jurisdiction, before
or after payment or transfer of benefits and rights or their proceeds
to the trustee, to:

(1) Determine the validity of the trust.

(2) Determine the terms of the trust.

(3) Fill vacancies in the office of trustee.

(4) Require a bond of a trustee in its discretion and in such
amount as the court may determine for the faithful performance
of duties as trustee, subject to the provisions of Article 3
(commencing with Section begin delete 1540) end delete begin insert 1570) end insert of Chapter begin delete 12 end delete begin insert 16 end insert of
Division begin delete 1 end delete begin insert 1.1 end insert of the Financial Code and Section 15602 of this
code.

(5) Grant additional powers to the trustee, as provided in Section
16201.

(6) Instruct the trustee.

(7) Fix or allow payment of compensation of a trustee as
provided in Sections 15680 to 15683, inclusive.

(8) Hear and determine adverse claims to the trust property by
the personal representative, surviving spouse, or other third person.

(9) Determine the identity of the trustee and the trustee’s
acceptance or rejection of the office and, upon request, furnish
evidence of trusteeship to a trustee.

(10) Order postponement of the payment or transfer of the
benefits and rights or their proceeds.

(11) Authorize or direct removal of the trust or trust property
to another jurisdiction pursuant to the procedure provided in
Chapter 5 (commencing with Section 17400) of Part 5 of Division
9.

(12) Make any order incident to the foregoing or to the
accomplishment of the purposes of this chapter.

(b) The personal representative of the designator’s estate, any
trustee named in the will or designation or successor to such trustee,
or any person interested in the estate or trust may petition the court
for an order under this section. Notice of hearing of the petition
shall be given in the manner provided in Section 17203, except as
the court may otherwise order.

SEC. 139.  

Section 9702 of the Probate Code is amended to
read:

9702.  

(a) A trust company serving as personal representative
may deposit securities that constitute all or part of the estate in a
securities depository begin insert , end insert as provided in Section begin delete 775 end delete begin insert 1612 end insert of the
Financial Code.

(b) If securities have been deposited with a trust company by a
personal representative pursuant to Section 9701, the trust company
may deposit the securities in a securities depository begin insert , end insert as provided
in Section begin delete 775 end delete begin insert 1612 end insert of the Financial Code.

(c) The securities depository may hold securities deposited with
it in the manner authorized by Section begin delete 775 end delete begin insert 1612 end insert of the Financial
Code.

SEC. 140.  

Section 9730 of the Probate Code is amended to
read:

9730.  

Pending distribution of the estate, the personal
representative may invest money of the estate in possession of the
personal representative in any one or more of the following:

(a) Direct obligations of the United States, or of the State of
California, maturing not later than one year from the date of making
the investment.

(b) An interest in a money market mutual fund registered under
the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1, et
seq.) or an investment vehicle authorized for the collective
investment of trust funds pursuant to Section 9.18 of Part 9 of Title
12 of the Code of Federal Regulations, the portfolios of which are
limited to United States government obligations maturing not later
than five years from the date of investment and to repurchase
agreements fully collateralized by United States government
obligations.

(c) Units of a common trust fund described in Section begin delete 1564 end delete
begin insert 1585 end insert of the Financial Code. The common trust fund shall have as
its objective investment primarily in short term fixed income
obligations and shall be permitted to value investments at cost
pursuant to regulations of the appropriate regulatory authority.

SEC. 141.  

Section 20133 of the Public Contract Code is
amended to read:

20133.  

(a) A county, with approval of the board of supervisors,
may begin delete utilize end delete begin insert use end insert an alternative procedure for bidding on construction
projects in the county in excess of two million five hundred
thousand dollars ($2,500,000) and may award the project using
either the lowest responsible bidder or by best value.

(b) (1) It is the intent of the Legislature to enable counties to
begin delete utilize end delete begin insert use end insert design-build for buildings and county sanitation
wastewater treatment facilities. It is not the intent of the Legislature
to authorize this procedure for other infrastructure, including, but
not limited to, streets and highways, public rail transit, or water
resources facilities and infrastructures.

(2) The Legislature also finds and declares that utilizing a
design-build contract requires a clear understanding of the roles
and responsibilities of each participant in the design-build process.

(3) (A) For contracts for public works projects awarded prior
to the effective date of regulations adopted by the Department of
Industrial Relations pursuant to subdivision (g) of Section 1771.5
of the Labor Code, if the board of supervisors elects to proceed
under this section, the board of supervisors shall establish and
enforce a labor compliance program containing the requirements
outlined in Section 1771.5 of the Labor Code, or it shall contract
with a third party to operate a labor compliance program containing
the requirements outlined in Section 1771.5 of the Labor Code.
This requirement shall not apply to any projects where the county
or the design-build entity has entered into a collective bargaining
agreement that binds all of the contractors performing work on the
projects.

(B) For contracts for public works projects awarded on or after
the effective date of regulations adopted by the Department of
Industrial Relations pursuant to subdivision (g) of Section 1771.5
of the Labor Code, the board of supervisors shall reimburse the
department for its reasonable and directly related costs of
performing prevailing wage monitoring and enforcement on public
works projects pursuant to rates established by the department as
set forth in subdivision (h) of Section 1771.5 of the Labor Code.
All moneys collected pursuant to this paragraph shall be deposited
in the State Public Works Enforcement Fund created by Section
1771.3 of the Labor Code, and shall be used only for enforcement
of prevailing wage requirements on those projects.

(C) In lieu of reimbursing the Department of Industrial Relations
for its reasonable and directly related costs of performing
monitoring and enforcement on public works projects, the board
of supervisors may elect to continue operating an existing
previously approved labor compliance program to monitor and
enforce prevailing wage requirements on the project if it has either
not contracted with a third party to conduct its labor compliance
program and requests and receives approval from the department
to continue its existing program or it enters into a collective
bargaining agreement that binds all of the contractors performing
work on the project and that includes a mechanism for resolving
disputes about the payment of wages.

(c) As used in this section:

(1) “Best value” means a value determined by objective criteria
related to price, features, functions, and life-cycle costs.

(2) “Design-build” means a procurement process in which both
the design and construction of a project are procured from a single
entity.

(3) “Design-build entity” means a partnership, corporation, or
other legal entity that is able to provide appropriately licensed
contracting, architectural, and engineering services as needed
pursuant to a design-build contract.

(4) “Project” means the construction of a building and
improvements directly related to the construction of a building,
and county sanitation wastewater treatment facilities, but does not
include the construction of other infrastructure, including, but not
limited to, streets and highways, public rail transit, or water
resources facilities and infrastructure.

(d) Design-build projects shall progress in a four-step process,
as follows:

(1) (A) The county shall prepare a set of documents setting
forth the scope of the project. The documents may include, but are
not limited to, the size, type, and desired design character of the
public improvement, performance specifications covering the
quality of materials, equipment, and workmanship, preliminary
plans or building layouts, or any other information deemed
necessary to describe adequately the county’s needs. The
performance specifications and any plans shall be prepared by a
design professional who is duly licensed and registered in
California.

(B) Any architect or engineer retained by the county to assist
in the development of the project-specific documents shall not be
eligible to participate in the preparation of a bid with any
design-build entity for that project.

(2) (A) Based on the documents prepared in paragraph (1), the
county shall prepare a request for proposals that invites interested
parties to submit competitive sealed proposals in the manner
prescribed by the county. The request for proposals shall include,
but is not limited to, the following elements:

(i) Identification of the basic scope and needs of the project or
contract, the expected cost range, and other information deemed
necessary by the county to inform interested parties of the
contracting opportunity, to include the methodology that will be
used by the county to evaluate proposals and specifically if the
contract will be awarded to the lowest responsible bidder.

(ii) Significant objective factors that the county reasonably
expects to consider in evaluating proposals, including cost or price
and all nonprice-related factors.

(iii) The relative importance of weight assigned to each of the
factors identified in the request for proposals.

(B) With respect to clause (iii) of subparagraph (A), if a
nonweighted system is used, the agency shall specifically disclose
whether all evaluation factors other than cost or price when
combined are:

(i) Significantly more important than cost or price.

(ii) Approximately equal in importance to cost or price.

(iii) Significantly less important than cost or price.

(C) If the county chooses to reserve the right to hold discussions
or negotiations with responsive bidders, it shall so specify in the
request for proposal and shall publish separately or incorporate
into the request for proposal applicable rules and procedures to be
observed by the county to ensure that any discussions or
negotiations are conducted in good faith.

(3) (A)  The county shall establish a procedure to prequalify
design-build entities using a standard questionnaire developed by
the county. In preparing the questionnaire, the county shall consult
with the construction industry, including representatives of the
building trades and surety industry. This questionnaire shall require
information, including, but not limited to, all of the following:

(i) If the design-build entity is a partnership, limited partnership,
or other association, a listing of all of the partners, general partners,
or association members known at the time of bid submission who
will participate in the design-build contract, including, but not
limited to, mechanical subcontractors.

(ii) Evidence that the members of the design-build entity have
completed, or demonstrated the experience, competency, capability,
and capacity to complete, projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the
design and construction of the project, as well as a financial
statement that assures the county that the design-build entity has
the capacity to complete the project.

(iii) The licenses, registration, and credentials required to design
and construct the project, including information on the revocation
or suspension of any license, credential, or registration.

(iv) Evidence that establishes that the design-build entity has
the capacity to obtain all required payment and performance
bonding, liability insurance, and errors and omissions insurance.

(v) Any prior serious or willful violation of the California
Occupational Safety and Health Act of 1973, contained in Part 1
(commencing with Section 6300) of Division 5 of the Labor Code,
or the federal Occupational Safety and Health Act of 1970 (Public
Law 91-596), settled against any member of the design-build entity,
and information concerning workers’ compensation experience
history and worker safety program.

(vi) Information concerning any debarment, disqualification,
or removal from a federal, state, or local government public works
project. Any instance in which an entity, its owners, officers, or
managing employees submitted a bid on a public works project
and were found to be nonresponsive, or were found by an awarding
body not to be a responsible bidder.

(vii) Any instance in which the entity, or its owners, officers,
or managing employees, defaulted on a construction contract.

(viii) Any violations of the Contractors’ State License Law
(Chapter 9 (commencing with Section 7000) of Division 3 of the
Business and Professions Code), excluding alleged violations of
federal or state law including the payment of wages, benefits,
apprenticeship requirements, or personal income tax withholding,
or of Federal Insurance Contributions Act (FICA; 26 U.S.C. Sec.
3101 et seq.) withholding requirements settled against any member
of the design-build entity.

(ix) Information concerning the bankruptcy or receivership of
any member of the design-build entity, including information
concerning any work completed by a surety.

(x) Information concerning all settled adverse claims, disputes,
or lawsuits between the owner of a public works project and any
member of the design-build entity during the five years preceding
submission of a bid pursuant to this section, in which the claim,
settlement, or judgment exceeds fifty thousand dollars ($50,000).
Information shall also be provided concerning any work completed
by a surety during this period.

(xi) In the case of a partnership or an association that is not a
legal entity, a copy of the agreement creating the partnership or
association and specifying that all partners or association members
agree to be fully liable for the performance under the design-build
contract.

(xii) (I) Any instance in which the entity, or any of its members,
owners, officers, or managing employees was, during the five years
preceding submission of a bid pursuant to this section, determined
by a court of competent jurisdiction to have submitted, or legally
admitted for purposes of a criminal plea to have submitted either
of the following:

(ia) Any claim to any public agency or official in violation of
the federal False Claims Act (31 U.S.C. Sec. 3729 et seq.).

(ib) Any claim to any public official in violation of the
California False Claims Act (Article 9 (commencing with Section
12650) of Chapter 6 of Part 2 of Division 3 of begin insert Title 2 of end insert the
Government Code).

(II) Information provided pursuant to this subdivision shall
include the name and number of any case filed, the court in which
it was filed, and the date on which it was filed. The entity may
also provide further information regarding any such instance,
including any mitigating or extenuating circumstances that the
entity wishes the county to consider.

(B) The information required pursuant to this subdivision shall
be verified under oath by the entity and its members in the manner
in which civil pleadings in civil actions are verified. Information
that is not a public record pursuant to the California Public Records
Act (Chapter 3.5 (commencing with Section 6250) of Division 7
of Title 1 of the Government Code) shall not be open to public
inspection.

(4) The county shall establish a procedure for final selection of
the design-build entity. Selection shall be based on either of the
following criteria:

(A) A competitive bidding process resulting in lump-sum bids
by the prequalified design-build entities. Awards shall be made to
the lowest responsible bidder.

(B) A county may use a design-build competition based upon
best value and other criteria set forth in paragraph (2). The
design-build competition shall include the following elements:

(i) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposal. However, the following minimum factors
shall each represent at least 10 percent of the total weight of
consideration given to all criteria factors: price, technical design,
and construction expertise, life-cycle costs over 15 years or more,
skilled labor force availability, and acceptable safety record.

(ii) Once the evaluation is complete, the top three responsive
bidders shall be ranked sequentially from the most advantageous
to the least.

(iii) The award of the contract shall be made to the responsible
bidder whose proposal is determined, in writing, to be the most
advantageous.

(iv) Notwithstanding any provision of this code, upon issuance
of a contract award, the county shall publicly announce its award,
identifying the contractor to whom the award is made, along with
a written decision supporting its contract award and stating the
basis of the award. The notice of award shall also include the
county’s second and third ranked design-build entities.

(v) For purposes of this paragraph, “skilled labor force
availability” shall be determined by the existence of an agreement
with a registered apprenticeship program, approved by the
California Apprenticeship Council, which has graduated
apprentices in each of the preceding five years. This graduation
requirement shall not apply to programs providing apprenticeship
training for any craft that has been deemed by the Department of
Labor and the Department of Industrial Relations to be an
apprenticeable craft in the five years prior to enactment of this act.

(vi) For purposes of this paragraph, a bidder’s “safety record”
shall be deemed “acceptable” if its experience modification rate
for the most recent three-year period is an average of 1.00 or less,
and its average total recordable injury/illness rate and average lost
work rate for the most recent three-year period does not exceed
the applicable statistical standards for its business category or if
the bidder is a party to an alternative dispute resolution system as
provided for in Section 3201.5 of the Labor Code.

(e) (1) Any design-build entity that is selected to design and
build a project pursuant to this section shall possess or obtain
sufficient bonding to cover the contract amount for nondesign
services, and errors and omission insurance coverage sufficient to
cover all design and architectural services provided in the contract.
This section does not prohibit a general or engineering contractor
from being designated the lead entity on a design-build entity for
the purposes of purchasing necessary bonding to cover the activities
of the design-build entity.

(2) Any payment or performance bond written for the purposes
of this section shall be written using a bond form developed by
the county.

(f) All subcontractors that were not listed by the design-build
entity in accordance with clause (i) of subparagraph (A) of
paragraph (3) of subdivision (d) shall be awarded by the
design-build entity in accordance with the design-build process
set forth by the county in the design-build package. All
subcontractors bidding on contracts pursuant to this section shall
be afforded the protections contained in Chapter 4 (commencing
with Section 4100) of Part 1. The design-build entity shall do both
of the following:

(1) Provide public notice of the availability of work to be
subcontracted in accordance with the publication requirements
applicable to the competitive bidding process of the county.

(2) Provide a fixed date and time on which the subcontracted
work will be awarded in accordance with the procedure established
pursuant to this section.

(g) Lists of subcontractors, bidders, and bid awards relating to
the project shall be submitted by the design-build entity to the
awarding body within 14 days of the award. These documents are
deemed to be public records and shall be available for public
inspection pursuant to this chapter and Article 1 (commencing
with Section 6250) of Chapter 3.5 of Division 7 of begin insert Title 1 of end insert the
Government Code.

(h) The minimum performance criteria and design standards
established pursuant to paragraph (1) of subdivision (d) shall be
adhered to by the design-build entity. Any deviations from those
standards may only be allowed by written consent of the county.

(i) The county may retain the services of a design professional
or construction project manager, or both, throughout the course of
the project in order to ensure compliance with this section.

(j) Contracts awarded pursuant to this section shall be valid until
the project is completed.

(k) Nothing in this section is intended to affect, expand, alter,
or limit any rights or remedies otherwise available at law.

(l) (1) If the county elects to award a project pursuant to this
section, retention proceeds withheld by the county from the
design-build entity shall not exceed 5 percent if a performance and
payment bond, issued by an admitted surety insurer, is required in
the solicitation of bids.

(2) In a contract between the design-build entity and the
subcontractor, and in a contract between a subcontractor and any
subcontractor thereunder, the percentage of the retention proceeds
withheld may not exceed the percentage specified in the contract
between the county and the design-build entity. If the design-build
entity provides written notice to any subcontractor begin delete who end delete begin insert that end insert is not
a member of the design-build entity, prior to or at the time the bid
is requested, that a bond may be required and the subcontractor
subsequently is unable or refuses to furnish a bond to the
design-build entity, then the design-build entity may withhold
retention proceeds in excess of the percentage specified in the
contract between the county and the design-build entity from any
payment made by the design-build entity to the subcontractor.

(m) Each county that elects to proceed under this section and
uses the design-build method on a public works project shall submit
to the Legislative Analyst’s Office before September 1, 2013, a
report containing a description of each public works project
procured through the design-build process and completed after
November 1, 2009, and before August 1, 2013. The report shall
include, but shall not be limited to, all of the following information:

(1) The type of project.

(2) The gross square footage of the project.

(3) The design-build entity that was awarded the project.

(4) The estimated and actual length of time to complete the
project.

(5) The estimated and actual project costs.

(6) Whether the project was met or altered.

(7) The number and amount of project change orders.

(8) A description of any written protests concerning any aspect
of the solicitation, bid, proposal, or award of the design-build
project, including the resolution of the protests.

(9) An assessment of the prequalification process and criteria.

(10) An assessment of the effect of retaining 5 percent retention
on the project.

(11) A description of the Labor Force Compliance Program and
an assessment of the project impact, where required.

(12) A description of the method used to award the contract. If
best value was the method, the report shall describe the factors
used to evaluate the bid, including the weighting of each factor
and an assessment of the effectiveness of the methodology.

(13) An assessment of the project impact of “skilled labor force
availability.”

(14) An assessment of the design-build dollar limits on county
projects. This assessment shall include projects where the county
wanted to use design-build and was precluded by the dollar
limitation. This assessment shall also include projects where the
best value method was not used due to dollar limitations.

(15) An assessment of the most appropriate uses for the
design-build approach.

(n) Any county that elects not to use the authority granted by
this section may submit a report to the Legislative Analyst’s Office
explaining why the county elected not to use the design-build
method.

(o) On or before January 1, 2014, the Legislative Analyst shall
report to the Legislature on the use of the design-build method by
counties pursuant to this section, including the information listed
in subdivisions (m) and (p). The report may include
recommendations for modifying or extending this section.

(p) The Legislative Analyst shall complete a fact-based analysis
of the use of the design-build method by counties pursuant to this
section, begin delete utilizing end delete begin insert using end insert the information provided pursuant to
subdivision (m) and any independent information provided by the
public or interested parties. The Legislative Analyst shall select a
representative sample of projects under this section and review
available public records and reports, media reports, and related
information in its analysis. The Legislative Analyst shall compile
the information required to be analyzed pursuant to this subdivision
into a report, which shall be provided to the Legislature. The report
shall include conclusions describing the actual cost of projects
procured pursuant to this section, whether the project schedule
was met or altered, and whether projects needed or used project
change orders.

(q) Except as provided in this section, this act shall not be
construed to affect the application of any other law.

(r) This section shall remain in effect only until July 1, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before July 1, 2016, deletes or extends that date.

SEC. 142.  

Section 6217.6 of the Public Resources Code is
amended to read:

6217.6.  

All rental income received for surface uses begin insert , end insert including,
but not limited to, surface drilling rights, upon lands under the
jurisdiction of the State Lands Commission shall be deposited in
the State Treasury to the credit of the General Fund, except as
follows:

(a) Income from state school lands, as provided in Section
6217.5.

(b) Royalties received from extraction of minerals on the surface
of those lands, as provided in Section 6217.

(c) (1) All rental income from surface uses for lands at Lake
Tahoe.

(2) The rental income specified in paragraph (1) shall be
deposited into the Lake Tahoe Science and Lake Improvement
Account, for expenditure upon appropriation by the Legislature
pursuant to Section begin delete 6717.6.1 end delete begin insert 6217.6.1 end insert .

SEC. 143.  

Section 6717.6.1 of the Public Resources Code is
amended and renumbered to read:

begin delete 6717.6.1. end delete
begin insert 6217.6.1 end insert   

(a)  For purposes of this section, the following
begin delete definitions shall apply end delete begin insert terms shall have the following meanings end insert :

(1) “Account” means the Lake Tahoe Science and Lake
Improvement Account created pursuant to this section.

(2) “Compact” means the Tahoe Regional Planning Compact.

(3) “Resources agency” means the Natural Resources Agency.

(4) “Secretary” means the Secretary of the Natural Resources
Agency.

(b) The Lake Tahoe Science and Lake Improvement Account
is hereby created in the General Fund. The moneys in the account
may be expended by the agency, upon appropriation by the
Legislature, for the purposes of this section, with appropriate
disclosure pursuant to subdivision (d). The secretary shall
administer the account.

(c) Notwithstanding Section 6217, the funds in the account shall
be expended as follows:

(1) The costs associated with establishing the bistate
science-based advisory council established pursuant to subdivision
(e).

(2) For near-shore environmental improvement program
activities and projects that include, but are not limited to, all of the
following:

(A) (i) Near-shore aquatic invasive species projects and projects
to improve public access to sovereign land in Lake Tahoe,
including planning and site improvement or reconstruction projects
on public land, and land acquisitions from willing sellers, subject
to clause (ii).

(ii) Near-shore aquatic invasive species projects and projects
to improve public access to sovereign land in Lake Tahoe may be
funded only if matching funds for this purpose are provided by
the California Tahoe Conservancy or by another public entity. The
conservancy shall coordinate the selection of projects to be funded
through a collaborative process that includes the participation of
other public agencies, nonprofit organizations, and private
landowners, including those persons or organizations that pay the
rental income described in paragraph (1) of subdivision (c) of
Section 6217.6.

(B) (i) Near-shore water quality monitoring, subject to clause
(ii).

(ii) Near-shore water quality monitoring may be funded only if
matching funds for this purpose are provided from the Lahontan
Regional Water Quality Control Board or by another public entity.

(d) The agency, or another agency designated by it, shall, on a
publicly accessible Internet Web site, annually make available
information regarding any activity funded pursuant to this section.
The information shall include, at a minimum, all of the following:

(1) The name of the agency, or agencies, to which funding was
allocated.

(2) A summary of the activities and projects funded by the
account.

(3) The amount allocated for the activity.

(4) An anticipated timeline and total cost for completion of the
activity.

(e) The secretary may enter into a memorandum of agreement
with the Nevada Department of Conservation and Natural
Resources to establish and operate a bistate science-based advisory
council in the Tahoe basin whose purpose is to promote and
enhance the use of the best available scientific information on
matters of interest to both states. The organization shall be
nonregulatory, and shall focus on activities that will advance
attainment of environmental thresholds, as provided in the compact.
A majority of the governing body of that organization shall be
comprised of scientists with expertise in disciplines pertinent to
achieving and maintaining the goals of the compact.

SEC. 144.  

Section 25722.8 of the Public Resources Code is
amended to read:

25722.8.  

(a) On or before July 1, 2009, the Secretary of begin delete State
and Consumer Services, end delete begin insert the Government Operations Agency, end insert in
consultation with the Department of General Services and other
appropriate state agencies that maintain or purchase vehicles for
the state fleet, including the campuses of the California State
University, shall develop and implement, and submit to the
Legislature and the Governor, a plan to improve the overall state
fleet’s use of alternative fuels, synthetic lubricants, and
fuel-efficient vehicles by reducing or displacing the consumption
of petroleum products by the state fleet when compared to the
2003 consumption level based on the following schedule:

(1) By January 1, 2012, a 10-percent reduction or displacement.

(2) By January 1, 2020, a 20-percent reduction or displacement.

(b)  Beginning April 1, 2010, and annually thereafter, the
Department of General Services shall prepare a progress report on
meeting the goals specified in subdivision (a). The Department of
General Services shall post the progress report on its Internet Web
site.

(c) (1) The Department of General Services shall encourage,
to the extent feasible, the operation of state alternatively fueled
vehicles on the alternative fuel for which the vehicle is designed
and the development of commercial infrastructure for alternative
fuel pumps and charging stations at or near state vehicle fueling
or parking sites.

(2) The Department of General Services shall work with other
public agencies to incentivize and promote, to the extent feasible,
state employee operation of alternatively fueled vehicles through
preferential or reduced-cost parking, access to charging, or other
means.

(3) For purposes of this subdivision, “alternatively fueled
vehicles” means light-, medium-, and heavy-duty vehicles that
reduce petroleum usage and related emissions by using advanced
technologies and fuels, including, but not limited to, hybrid, plug-in
hybrid, battery electric, natural gas, or fuel cell vehicles and
including those vehicles described in Section 5205.5 of the Vehicle
Code.

SEC. 145.  

Section 30620 of the Public Resources Code is
amended to read:

30620.  

(a) By January 30, 1977, the commission shall,
consistent with this chapter, prepare interim procedures for the
submission, review, and appeal of coastal development permit
applications and of claims of exemption. These procedures shall
include, but are not limited to, all of the following:

(1) Application and appeal forms.

(2) Reasonable provisions for notification to the commission
and other interested persons of an action taken by a local
government pursuant to this chapter, in sufficient detail to ensure
that a preliminary review of that action for conformity with this
chapter can be made.

(3) Interpretive guidelines designed to assist local governments,
the commission, and persons subject to this chapter in determining
how the policies of this division shall be applied in the coastal
zone prior to the certification, and through the preparation and
amendment, of local coastal programs. However, the guidelines
shall not supersede, enlarge, or diminish the powers or authority
of the commission or any other public agency.

(b)  begin delete Not end delete begin insert No end insert later than May 1, 1977, the commission shall, after
public hearing, adopt permanent procedures that include the
components specified in subdivision (a) and shall transmit a copy
of those procedures to each local government within the coastal
zone and make them readily available to the public. begin delete The end delete begin insert After May
1, 1977, the end insert commission may begin delete thereafter end delete , from time to time, and,
except in cases of emergency, after public hearing, modify or adopt
additional procedures or guidelines that the commission determines
to be necessary to better carry out the purposes of this division.

(c) (1) The commission may require a reasonable filing fee and
the reimbursement of expenses for the processing by the
commission of an application for a coastal development permit
under this division and, except for local coastal program submittals,
for any other filing, including, but not limited to, a request for
revocation, categorical exclusion, or boundary adjustment, that is
submitted for review by the commission.

(2)  begin delete Any end delete begin insert A end insert coastal development permit begin delete fees end delete begin insert fee end insert that begin delete are end delete begin insert is end insert
collected by the commission under paragraph (1) shall be deposited
in the Coastal Act Services Fund established pursuant to Section
30620.1. This paragraph does not authorize an increase in fees or
create any new authority on the part of the commission.

(d) With respect to an appeal of an action taken by a local
government pursuant to Section 30602 or 30603, the executive
director shall, within five working days of receipt of an appeal
from a person other than a member of the commission or a public
agency, determine whether the appeal is patently frivolous. If the
executive director determines that an appeal is patently frivolous,
the appeal shall not be filed unless a filing fee in the amount of
three hundred dollars ($300) is deposited with the commission
within five working days of the receipt of the executive director’s
determination. If the commission subsequently finds that the appeal
raises a substantial issue, the filing fee shall be refunded.

SEC. 146.  

Section 379.8 of the Public Utilities Code is
amended to read:

379.8.  

(a) As used in this section, “advanced electrical
distributed generation technology” means any begin delete electric end delete begin insert electrical end insert
distributed generation technology that generates useful electricity
and meets all of the following conditions:

(1) The emissions standards adopted by the State Air Resources
Board pursuant to the distributed generation certification program
requirements of Article 3 (commencing with Section 94200) of
Subchapter 8 of Chapter 1 of Division 3 of Title 17 of the
California Code of Regulations.

(2) Produces de minimis emissions of sulfur oxides and nitrogen
oxides.

(3) Meets the greenhouse gases emission performance standard
established by the commission pursuant to Section 8341.

(4) Has a total electrical efficiency of not less than 45 percent.
If legislation is enacted that increases the 42.5 percent efficiency
described in subdivision (b) of Section 216.6 above 45 percent,
the commission may adjust the electrical efficiency standard
described in this paragraph to ensure that this electrical efficiency
standard meets or exceeds the standard enacted for the purposes
of subdivision (b) of Section 216.6.

(5) Is sized to meet the generator’s onsite electrical demand.

(6) Has parallel operation to the electrical distribution grid.

(7) Utilizes renewable or nonrenewable fuel.

(b) (1) An advanced electrical distributed generation technology
shall qualify for the rate established by the commission pursuant
to Section 454.4.

(2) The limitation in subdivision (b) of Section 6352 upon the
assessment of surcharges for gas used to generate electricity by a
nonutility facility applies to an advanced electrical distributed
generation technology.

(3) The limitation in Section 2773.5 upon imposing alternative
fuel capability requirements upon gas customers that use gas for
purposes of cogeneration applies to an advanced electrical
distributed generation technology.

(c) The commission or State Air Resources Board may, in
furtherance of the state’s goals for achieving cost-effective
reductions in emissions of greenhouse gases, meeting resource
adequacy requirements, or meeting the renewables portfolio
standard, treat advanced electrical distributed generation technology
as cogeneration.

(d) Subdivisions (b) and (c) do not apply to an advanced
electrical distributed generation technology that is first operational
at a site on and after January 1, 2016.

SEC. 147.  

Section 589 of the Public Utilities Code is amended
to read:

589.  

(a) In an existing or new proceeding, the commission
shall require the electrical and gas corporations to cooperate in
establishing a single Internet Web site available to the public that
provides up-to-date information, begin insert updated end insert no less begin delete frequent end delete
begin insert frequently end insert than once every 30 days, regarding ratepayer-funded
energy efficiency assistance programs that, to the extent the
information is available, in an aggregate format that would not
provide identifying information about individual customers of the
electrical and gas corporations, include all of the following:

(1) The types of energy efficiency measures installed.

(2) The ZIP Code location of each customer receiving
ratepayer-funded energy efficiency assistance.

(3) The amount of funds expended at each ZIP Code location.

(4) The expected annual energy savings and reduced energy
usage expected in kilowatthours or therms.

(b) (1) The commission shall order the electrical and gas
corporations to establish, based on data, ratepayer-funded energy
efficiency assistance program reports on program totals,
geographical and monthly statistics, cost distribution, and progress
toward program goals.

(2) The electrical and gas corporations shall make the reports
available on the Internet Web site established pursuant to
subdivision (a).

(c) The commission shall require the electrical and gas
corporations to publish data, including the amount expended, on
the ratepayer-funded energy efficiency programs that are not direct
retrofits, including, but not limited to, research on building and
appliance standards and marketing and outreach, on the Internet
Web site established pursuant to subdivision (a).

(d) The commission shall take begin delete necessary end delete steps begin insert necessary end insert to
ensure the Internet Web site established pursuant to subdivision
(a) is available to the public on or before June 1, 2014.

(e) The commission shall have a link to the Internet Web site
established pursuant to subdivision (a) on the commission’s Internet
Web site and require the electrical and gas corporations to have a
link to the Internet Web site established pursuant to subdivision
(a) on the appropriate page of the Internet Web site of each
electrical and gas corporation.

SEC. 148.  

Section 740.5 of the Public Utilities Code is
amended to read:

740.5.  

(a) For purposes of this section, “21st Century Energy
System Decision” means commission Decision 12-12-031
(December 20, 2012), Decision Granting Authority to Enter Into
a Research and Development Agreement with Lawrence Livermore
National Laboratory for 21st Century Energy Systems and for
costs up to $152.19 million, or any subsequent decision in
Application 11-07-008 (July 18, 2011), Application of Pacific Gas
and Electric Company (U39M), San Diego Gas and Electric
Company (U902E), and Southern California Edison Company
(U338E) for Authority to Increase Electric Rates and Charges to
Recover Costs of Research and Development Agreement with
Lawrence Livermore National Laboratory for 21st Century Energy
Systems.

(b) In implementing the 21st Century Energy System Decision,
the commission shall not authorize recovery from ratepayers of
any expense for research and development projects that are not
for purposes of cyber security and grid integration. Total funding
for research and development projects for begin delete the end delete purposes of cyber
security and grid integration pursuant to the 21st Century Energy
System Decision shall not exceed thirty-five million dollars
($35,000,000). All cyber security and grid integration research
and development projects shall be concluded by the fifth
anniversary of their start date.

(c) The commission shall not approve for recovery from
begin delete ratepayers, end delete begin insert ratepayers end insert those program management expenditures
proposed, commencing with page seven, in the joint advice letter
filed by the state’s three largest electrical corporations, Advice
3379-G/4215-E (Pacific Gas and Electric Company), Advice
2887-E (Southern California Edison Company), and Advice 2473-E
(San Diego Gas and Electric Company), dated April 19, 2013.
Project managers for the 21st Century Energy System Decision
shall be limited to three representatives, one representative each
from Pacific Gas and Electric Company, Southern California
Edison Company, and San Diego Gas and Electric Company.

(d) The commission shall require the Lawrence Livermore
National Laboratory, as a condition for entering into any contract
pursuant to the 21st Century Energy System Decision, and Pacific
Gas and Electric Company, Southern California Edison Company,
and San Diego Gas and Electric Company to ensure that research
parameters reflect a new contribution to cyber security and that
there not be a duplication of research being done by other private
and governmental entities.

(e) (1) The commission shall require each participating
electrical corporation to prepare and submit to the commission by
December 1, 2013, a joint report on the scope of all proposed
research projects, how the proposed project may lead to
technological advancement and potential breakthroughs in cyber
security and grid integration, and the expected timelines for
concluding the projects. The commission shall, within 30 days of
receiving the joint report, determine whether the report is sufficient
or requires begin delete revision, end delete begin insert revision end insert and begin insert , end insert upon determining that the report
is sufficient begin insert , end insert submit the report to the Legislature in compliance
with Section 9795 of the Government Code.

(2) The commission shall require each participating electrical
corporation to prepare and submit to the commission begin insert , end insert by 60 days
following the conclusion of all research and development projects,
a joint report summarizing the outcome of all funded projects,
including an accounting of expenditures by the project managers
and grant recipients on administrative and overhead costs and
whether the project resulted in any technological advancements
or breakthroughs in promoting cyber security and grid integration.
The commission shall, within 30 days of receiving the joint report,
determine whether the report is sufficient or requires begin delete revision, end delete
begin insert revision end insert and begin insert , end insert upon determining that the report is sufficient, submit
the report to the Legislature in compliance with Section 9795 of
the Government Code.

(3) This subdivision shall become begin delete inoperable end delete begin insert inoperative on end insert
January 1, 2023, pursuant to Section 10231.5 of the Government
Code.

SEC. 149.  

Section 741 of the Public Utilities Code, as added
by Section 2 of Chapter 140 of the Statutes of 2013, is amended
to read:

741.  

(a) Every owner or operator of telephones available for
public use, other than a telephone corporation, that accept any
form of payment which, as part of the service furnished, provides
operator-assisted services by other than a telephone corporation
having tariff schedules on file with the commission providing for
the furnishing of operator-assisted services, shall cause to be posted
on or near the telephone equipment so as to be easily seen by
telephone customers all of the following information:

(1) The name of the provider of operator-assisted services and
a toll-free telephone number for contacting that provider.

(2) The applicable charges for each available operator-assisted
service.

(3) That the provider of operator-assisted services will respond
to inquiries concerning the terms and conditions of any available
service.

(4) That surcharges may apply to operator-assisted and calling
card calls.

(5) That card-activated calls, calls activated by any other
payment device, or calls that may be charged to a card by giving
a card number to an operator may cost more than coin-activated
calls.

(6) The local rates for nonoperator-assisted calls.

(b) Every owner or operator of telephones available for public
use, other than a telephone corporation, that accept any form of
payment which, as part of begin insert the end insert service furnished, provides
operator-assisted services by other than a telephone corporation
having tariff schedules on file with the commission providing for
the furnishing of operator-assisted services begin insert , end insert shall:

(1) Identify itself, audibly and distinctly, to the consumer at the
beginning of each telephone call and before the consumer incurs
any charge for the call.

(2) Permit the consumer to terminate the telephone call before
the call is connected.

(3) At no charge, disclose to the consumer, immediately after
the number to be called is entered or given to an operator, a
quotation of its complete rates and charges for the call.

(c) This section shall become operative on January 1, 2015.

SEC. 150.  

Section 747.6 of the Public Utilities Code is
amended to read:

747.6.  

The commission shall report annually on its begin delete effort end delete begin insert efforts end insert
to identify ratepayer-funded energy efficiency programs that are
similar to programs administered by the Energy Commission, the
State Air Resources Board, and the California Alternative Energy
and Advanced Transportation Financing Authority in its annual
report prepared pursuant to subdivision (b) of Section 747 and to
require revisions to ratepayer-funded begin delete programs, end delete begin insert programs end insert as
begin delete necessary, end delete begin insert necessary end insert to ensure that the ratepayer-funded programs
complement and do not duplicate programs of other state agencies.

SEC. 151.  

Section 769 of the Public Utilities Code is amended
to read:

769.  

(a) For purposes of this section, “distributed resources”
means distributed renewable generation resources, energy
efficiency, energy storage, electric vehicles, and demand response
technologies.

(b) Not later than July 1, 2015, each electrical corporation shall
submit to the commission a distribution resources plan proposal
to identify optimal locations for the deployment of distributed
resources. Each proposal shall do all of the following:

(1) Evaluate locational benefits and costs of distributed resources
located on the distribution system. This evaluation shall be based
on reductions or increases in local generation capacity needs,
avoided or increased investments in distribution infrastructure,
safety benefits, reliability benefits, and any other savings the
distributed resources begin delete provides end delete begin insert provide end insert to the begin delete electric end delete begin insert electrical end insert
grid or costs to ratepayers of the electrical corporation.

(2) Propose or identify standard tariffs, contracts, or other
mechanisms for the deployment of cost-effective distributed
resources that satisfy distribution planning objectives.

(3) Propose cost-effective methods of effectively coordinating
existing commission-approved programs, incentives, and tariffs
to maximize the locational benefits and minimize the incremental
costs of distributed resources.

(4) Identify any additional utility spending necessary to integrate
cost-effective distributed resources into distribution planning
consistent with the goal of yielding net benefits to ratepayers.

(5) Identify barriers to the deployment of distributed resources,
including, but not limited to, safety standards related to technology
or operation of the distribution circuit in a manner that ensures
reliable service.

(c) The commission shall review each distribution resources
plan proposal submitted by an electrical corporation and approve,
or modify and approve, a distribution resources plan for the
corporation. The commission may modify any plan as appropriate
to minimize overall system costs and maximize ratepayer benefit
from investments in distributed resources.

(d) Any electrical corporation spending on distribution
infrastructure necessary to accomplish the distribution resources
plan shall be proposed and considered as part of the next general
rate case for the corporation. The commission may approve
proposed spending if it concludes that ratepayers would realize
net benefits and the associated costs are just and reasonable. The
commission may also adopt criteria, benchmarks, and
accountability mechanisms to evaluate the success of any
investment authorized pursuant to a distribution resources plan.

SEC. 152.  

Section 984.5 of the Public Utilities Code is
amended to read:

984.5.  

(a) The commission shall compile and regularly update
the following information: names and contact numbers of a
registered core transport agent, information to assist consumers in
making service choices, and the number of customer complaints
against specific providers in relation to the number of customers
served by those providers and the disposition of those complaints.
To facilitate this function, registered entities shall file with the
commission information describing the terms and conditions of
any standard service plan made available to core gas customers.
The commission shall adopt a standard format for this filing. The
commission shall maintain and make generally available a list of
entities offering core transport services operating in California.
This list shall include all registered core transport agents and those
agents not required to be registered that request the commission
to be included on the list. The commission shall, upon request,
make this information available at no charge. Notwithstanding any
other law, public agencies that are registered entities shall be
required to disclose their terms and conditions of service contracts
only to the same extent that other registered entities would be
required to disclose the same or similar service contracts.

(b) The commission shall issue public alerts about companies
attempting to provide core transport service in the state in an
unauthorized or fraudulent manner as begin delete defined end delete begin insert described end insert in
subdivision (b) of Section 983.5.

(c) The commission shall compile and post on its Internet Web
site easily understandable informational guides or other tools to
help core gas customers understand core transport service options.
In implementing these provisions, the commission shall pay special
attention to ensuring that customers, especially those with
limited-English-speaking ability or other disadvantages when
dealing with marketers, receive correct, reliable, and easily
understood information to help them make informed choices. The
commission shall not make specific recommendations, rank the
relative attractiveness of specific service offerings of registered
providers of core transport services, or provide customer-specific
assistance in the evaluation of core transport agents.

(d) The begin delete Division end delete begin insert Office end insert of Ratepayer Advocates shall analyze
customers’ complaints submitted to the gas corporation and to the
commission and the disposition of those complaints to determine
if the changes in the consumer protection rules are necessary to
better protect the participants in the core transportation program,
and make begin delete recommendation end delete begin insert recommendations end insert to the commission
regarding those rule changes.

SEC. 153.  

Section 987 of the Public Utilities Code is amended
to read:

987.  

(a) The commission shall maintain a list of core gas
customers who do not wish to be solicited by telephone, by a gas
corporation, marketer, broker, or aggregator for gas service, to
subscribe to or change their core transport agent. The commission
shall not assess a charge for inclusion of a customer on the list.
The list shall be updated periodically, but no less than quarterly.

(b) The list shall include sufficient information for gas
corporations, marketers, brokers, or aggregators of gas service to
identify customers who do not wish to be solicited, including a
customer’s address and telephone number. The list shall be made
accessible electronically from the commission to any party
regulated as a gas corporation or registered begin delete at end delete begin insert with end insert the commission
as an electric marketer, broker, or aggregator of gas service.

(c) A gas corporation, marketer, broker, or aggregator of gas
service shall not solicit, by telephone, any customer on the list
prepared pursuant to subdivision (a). Any gas corporation,
marketer, broker, or aggregator of gas service, or the representative
of a gas corporation, marketer, broker, or aggregator of gas service,
who solicits any customer on the list prepared pursuant to
subdivision (a) more than once shall be liable to the customer for
twenty-five dollars ($25) for each contact in violation of this
subdivision.

SEC. 154.  

Section 2120 of the Public Utilities Code is amended
to read:

2120.  

(a) The commission shall not distribute, expend, or
encumber any moneys received by the commission as a result of
any commission proceeding or judicial action, including the
compromise or settlement of a claim, until both of the following
are true:

(1) The commission has provided the Director of Finance with
written notification of the receipt of the moneys and the basis for
those moneys being received by the commission.

(2) The Director of Finance provides not less than 60 days’
written notice to the Chairperson of the Joint Legislative Budget
Committee and the begin delete chairs end delete begin insert chairpersons end insert of the appropriate budget
subcommittees of the Senate and Assembly of the receipt of the
moneys and the basis for those moneys being received by the
commission.

(b) This section does not apply to application or licensing fees
charged by the commission to defray regulatory expenses.

(c) This section does not apply to moneys received by the
commission in a court-approved settlement or as a result of a court
judgment where the court orders that the moneys be used for
specified purposes.

(d) This section does not apply to moneys received by the
commission where statutes expressly provide how the moneys are
to be paid or used, including all of the following:

(1) Payment to any fund created by Chapter 1.5 (commencing
with Section 270).

(2) Payment to any account or fund pursuant to Chapter 2.5
(commencing with Section 401).

(3) Payment to the Ratepayer Relief Fund pursuant to Article
9.5 (commencing with Section 16428.1) of Chapter 2 of Part 2 of
Division 4 of Title 2 of the Government Code.

SEC. 155.  

Section 2827.10 of the Public Utilities Code is
amended to read:

2827.10.  

(a) As used in this section, the following terms have
the following meanings:

(1) “Electrical corporation” means an electrical corporation, as
defined in Section 218.

(2) “Eligible fuel cell electrical generating facility” means a
facility that includes the following:

(A) Integrated powerplant systems containing a stack, tubular
array, or other functionally similar configuration used to
electrochemically convert fuel to begin delete electric energy. end delete begin insert electricity. end insert

(B) An inverter and fuel processing system where necessary.

(C) Other plant equipment, including heat recovery equipment,
necessary to support the plant’s operation or its energy conversion.

(3) (A) “Eligible fuel cell customer-generator” means a
customer of an electrical corporation that meets all the following
criteria:

(i) Uses a fuel cell electrical generating facility with a capacity
of not more than one megawatt that is located on or adjacent to
the customer’s owned, leased, or rented premises, is interconnected
and operates in parallel with the electrical grid while the grid is
operational or in a grid independent mode when the grid is
nonoperational, and is sized to offset part or all of the eligible fuel
cell customer-generator’s own electrical requirements.

(ii) Is the recipient of local, state, or federal funds, or who
self-finances projects designed to encourage the development of
eligible fuel cell electrical generating facilities.

(iii) Uses technology the commission has determined will
achieve reductions in emissions of greenhouse gases pursuant to
subdivision (b), and meets the emission requirements for eligibility
for funding set forth in subdivision (c), of Section 379.6.

(B) For purposes of this paragraph, a person or entity is a
customer of the electrical corporation if the customer is physically
located within the service territory of the electrical corporation
and receives bundled service, distribution service, or transmission
service from the electrical corporation.

(4) “Net energy metering” means measuring the difference
between the electricity supplied through the electrical grid and the
difference between the electricity generated by an eligible fuel cell
electrical generating facility and fed back to the electrical grid over
a 12-month period as described in subdivision (e). Net energy
metering shall be accomplished using a time-of-use meter capable
of registering the flow of electricity in two directions. If the existing
electrical meter of an eligible fuel cell customer-generator is not
capable of measuring the flow of electricity in two directions, the
eligible fuel cell customer-generator shall be responsible for all
expenses involved in purchasing and installing a meter that is able
to measure electricity flow in two directions. If an additional meter
or meters are installed, the net energy metering calculation shall
yield a result identical to that of a time-of-use meter.

(b) (1) Every electrical corporation, not later than March 1,
2004, shall file with the commission a standard tariff providing
for net energy metering for eligible fuel cell customer-generators,
consistent with this section. Subject to the limitation in subdivision
(f), every electrical corporation shall make this tariff available to
eligible fuel cell customer-generators upon request, on a
first-come-first-served basis, until the total cumulative rated
generating capacity of the eligible fuel cell electrical generating
facilities receiving service pursuant to the tariff reaches a level
equal to its proportionate share of a statewide limitation of 500
megawatts cumulative rated generation capacity served under this
section. The proportionate share shall be calculated based on the
ratio of the electrical corporation’s peak demand compared to the
total statewide peak demand.

(2) To continue the growth of the market for onsite begin delete electric end delete
begin insert electrical end insert generation using fuel cells, the commission may review
and incrementally raise the limitation established in paragraph (1)
on the total cumulative rated generating capacity of the eligible
fuel cell electrical generating facilities receiving service pursuant
to the tariff in paragraph (1).

(c) In determining the eligibility for the cumulative rated
generating capacity within an electrical corporation’s service
territory, preference shall be given to facilities that, at the time of
installation, are located in a community with significant exposure
to air contaminants or localized air contaminants, or both,
including, but not limited to, communities of minority populations
or low-income populations, or both, based on the ambient air
quality standards established pursuant to begin delete Section 39607 end delete begin insert Division
26 (commencing with Section 39000) end insert of the Health and Safety
Code.

(d) (1) Each net energy metering contract or tariff shall be
identical, with respect to rate structure, all retail rate components,
and any monthly charges, to the contract or tariff to which the
customer would be assigned if the customer was not an eligible
fuel cell customer-generator. Any new or additional demand
charge, standby charge, customer charge, minimum monthly
charge, interconnection charge, or other charge that would increase
an eligible fuel cell customer-generator’s costs beyond those of
other customers in the rate class to which the eligible fuel cell
customer-generator would otherwise be assigned are contrary to
the intent of the Legislature in enacting this section, and begin delete may end delete begin insert shall end insert
not form a part of net energy metering tariffs.

(2) The commission shall authorize an electrical corporation to
charge a fuel cell customer-generator a fee based on the cost to
the utility associated with providing interconnection inspection
services for that fuel cell customer-generator.

(e) The net metering calculation shall be made by measuring
the difference between the electricity supplied to the eligible fuel
cell customer-generator and the electricity generated by the eligible
fuel cell customer-generator and fed back to the electrical grid
over a 12-month period. The following rules shall apply to the
annualized metering calculation:

(1) The eligible fuel cell customer-generator shall, at the end
of each 12-month period following the date of final interconnection
of the eligible fuel cell electrical generating facility with an
electrical corporation, and at each anniversary date thereafter, be
billed for electricity used during that period. The electrical
corporation shall determine if the eligible fuel cell
customer-generator was a net consumer or a net producer of
electricity during that period. For purposes of determining if the
eligible fuel cell customer-generator was a net consumer or a net
producer of electricity during that period, the electrical corporation
shall aggregate the electrical load of the meters located on the
property where the eligible fuel cell electrical begin delete generation end delete begin insert generating end insert
facility is located and on all property adjacent or contiguous to the
property on which the facility is located, if those properties are
solely owned, leased, or rented by the eligible fuel cell
customer-generator. Each aggregated account shall be billed and
measured according to a time-of-use rate schedule.

(2) At the end of each 12-month period, where the electricity
supplied during the period by the electrical corporation exceeds
the electricity generated by the eligible fuel cell customer-generator
during that same period, the eligible fuel cell customer-generator
is a net electricity consumer and the electrical corporation shall
be owed compensation for the eligible fuel cell
customer-generator’s net kilowatthour consumption over that same
period. The compensation owed for the eligible fuel cell
customer-generator’s consumption shall be calculated as follows:

(A) The generation charges for any net monthly consumption
of electricity shall be calculated according to the terms of the tariff
to which the same customer would be assigned to or be eligible
for if the customer was not an eligible fuel cell customer-generator.
When the eligible fuel cell customer-generator is a net generator
during any discrete time-of-use period, the net kilowatthours
produced shall be valued at the same price per kilowatthour as the
electrical corporation would charge for retail kilowatthour sales
for generation, exclusive of any surcharges, during that same
time-of-use period. If the eligible fuel cell customer-generator’s
time-of-use electrical meter is unable to measure the flow of
electricity in two directions, paragraph (4) of subdivision (a) shall
apply. All other charges, other than generation charges, shall be
calculated in accordance with the eligible fuel cell
customer-generator’s applicable tariff and based on the total
kilowatthours delivered by the electrical corporation to the eligible
fuel cell customer-generator. To the extent that charges for
transmission and distribution services are recovered through
demand charges in any particular month, no standby reservation
charges shall apply in that monthly billing cycle.

(B) The net balance of moneys owed shall be paid in accordance
with the electrical corporation’s normal billing cycle.

(3) At the end of each 12-month period, where the electricity
generated by the eligible fuel cell customer-generator during the
12-month period exceeds the electricity supplied by the electrical
corporation during that same period, the eligible fuel cell
customer-generator is a net electricity producer and the electrical
corporation shall retain any excess kilowatthours generated during
the prior 12-month period. The eligible fuel cell customer-generator
shall not be owed any compensation for those excess kilowatthours.

(4) If an eligible fuel cell customer-generator terminates service
with the electrical corporation, the electrical corporation shall
reconcile the eligible fuel cell customer-generator’s consumption
and production of electricity during any 12-month period.

(f)  begin delete No end delete begin insert A end insert fuel cell electrical generating facility shall begin insert not end insert be
eligible for the tariff unless it commences operation prior to January
1, 2017, unless a later enacted statute, that is chaptered before
January 1, 2017, extends this eligibility commencement date. The
tariff shall remain in effect for an eligible fuel cell electrical
generating facility that commences operation pursuant to the tariff
prior to January 1, 2017. A fuel cell customer-generator shall be
eligible for the tariff established pursuant to this section only for
the operating life of the eligible fuel cell electrical generating
facility.

SEC. 156.  

Section 4661 of the Public Utilities Code is amended
to read:

4661.  

As used in this chapter, “for-hire vessel” includes any
vessel, by whatsoever power operated, carrying passengers for
hire, except a seaplane on the begin delete water, end delete begin insert water end insert and vessels exempt
from taxation under Section begin delete 4 end delete begin insert 3 end insert of Article XIII of the begin insert California end insert
Constitution begin delete of the State of California end delete .

SEC. 157.  

Section 100602.4 of the Public Utilities Code is
amended to read:

100602.4.  

(a) Where any parcel in the benefit district is owned
in joint tenancy, tenancy in common, or any other multiple
ownership, the owners of that parcel may designate in writing
which one of the owners shall be deemed the owner of the parcel
for purposes of submitting an assessment ballot pursuant to Section
53753 of the Government Code. In the absence of a designation,
the provisions of paragraph begin delete (1) end delete begin insert (3) end insert of subdivision (e) of Section
53753 of the Government Code shall apply.

(b) The legal representative of a corporation or an estate owning
real property in the benefit district may act on behalf of the
corporation or the estate.

(c) (1) For purposes of this chapter, “legal representative”
means an official of a corporation owning real property in the
benefit district.

(2) For purposes of this chapter, “legal representative” also
means a guardian, conservator, executor, or administrator of the
estate of the holder of title to real property in the benefit district
who is all of the following:

(A) The person is appointed under the laws of this state.

(B) The person is entitled to the possession of the estate’s real
property.

(C) The person is authorized by the appointing court to exercise
the particular right, privilege, or immunity begin delete which end delete begin insert that end insert he or she
seeks to exercise.

SEC. 158.  

Section 170056 of the Public Utilities Code is
amended to read:

170056.  

The port shall transfer all title and ownership of the
San Diego International Airport to the authority consistent with
the terms of the transfer under Section 170060 and shall include,
but need not be limited to, all of the following:

(a) All interest in real property and improvements, including,
but not limited to, all terminals, runways, taxiways, aprons,
hangars, Runway Protection Zones (RPZ), Airport Influence Areas
(AIA), emergency vehicles or facilities, parking facilities for
passengers and employees, above and below ground utility lines
and connections, easements, rights-of-way, other rights for the use
of property necessary or convenient to the use of airport properties,
and buildings and facilities used to operate, maintain, and manage
the airport which is consistent with the Airport Layout Plan (ALP)
dated September 13, 2000, and identified as Drawing No. 724 on
file with the clerk of the port, subject to paragraphs (1), (2), and
(3).

(1) The following real properties shall not be transferred and
shall remain under the ownership and control of the port:

(A) All property originally leased to General Dynamics
Corporation and identified in Document No. 12301 on file with
the clerk of the port.

(B) Property subleased by the port from TDY Industries, Inc.,
c/o Allegheny Teledyne (formerly Teledyne Ryan Aeronautical)
and identified as Document No. 17600 on file with the clerk of
the port.

(C) Property leased to Solar Turbines, Incorporated for parking
along Pacific Highway and identified as Document No. 39904 on
file with the clerk of the port (Parcel No. 016-026).

(D) Property leased to Solar Turbines, Incorporated, for parking
along Laurel Street and identified as Document No. 29239 on file
with the clerk of the port (Parcel No. 016-016 - Parcel 2).

(E) Property leased to Sky Chefs, Incorporated, located at 2450
Winship Lane and identified as Document No. 37740 on file with
the clerk of the port (Parcel No. 012-025).

(F) (i) Property located at Parcel No. 034-002 and identified
as Pond 20. The port shall retain ownership of Pond 20 and shall
reimburse the airport fund for the fair market value of that property.
The fair market value shall be determined by appraisal and
negotiation. If there is no agreement following that negotiation,
then the amount of payment shall be determined by arbitration.

(ii) On January 1, 2003, the port shall commence repayment to
the airport of the negotiated or arbitrated fair market value for the
property. The repayment schedule shall be a 10-year amortized
payment plan with interest based upon the rate of 1 percent above
the prevailing prime rate.

(2) The following additional real properties shall be transferred
from the port to the begin delete authority. end delete begin insert authority: end insert

(A) Property adjacent to Pond 20 located at Parcel Nos. 042-002
and 042-003 (this parcel encompasses approximately two or three
acres).

(B) Property acquired as Parcel No. 034-001 from Western Salt
Processing Plant and identified as Document No. 39222 from
GGTW, LLC.

(3) The following nonairport, real properties that presently
provide airport-related services shall also be excluded from any
land transfer to the authority:

(A) Airport employee parking lot located at Harbor Island Drive
and Harbor Island Drive East identified as District Parcel No.
007-020.

(B) Airport taxi and shuttle overflow lot located at the southeast
corner of North Harbor Drive and Harbor Island Drive identified
as District Parcel No. 007-025.

(C) Property leased to National Car Rental System, Incorporated,
located east of the southeast corner of North Harbor Drive and
Harbor Island Drive identified begin delete at end delete begin insert as end insert District Parcel No. 007-034.

(D) Property leased to The Hertz Corporation located east of
the southeast corner of North Harbor Drive and Harbor Island
Drive identified as District Parcel No. 007-035.

(E) Property leased to Avis Rent-A-Car Corporation located at
the southwest corner of North Harbor Drive and Rental Car
Roadway identified as District Parcel No. 007-036.

(F) Property leased to National Car Rental System, Incorporated,
located at the southeast corner of North Harbor Drive and Rental
Car Roadway identified as District Parcel No. 007-038.

(G) Property leased in common to National Car Rental System,
Incorporated; The Hertz Corporation; and Avis Rent-A-Car
begin delete Corporation, end delete begin insert Corporation end insert known as Joint-Use Roadway identified
as District Parcel No. 007-037.

(H) Property leased to Jimsair, Incorporated, located on the
property previously known as the General Dynamics Parcel, south
of Sassafras Street and west of Pacific Highway adjacent to the
Airport Operation Area identified as District Parcel No. 016-042.

(I) Property leased to Budget Rent A Car of San Diego located
at both the northeast and southwest corners of Palm Street and
Pacific Highway identified as District Parcel No. 016-001 (Parcel
1 and 2).

(J) Property leased to Budget Rent A Car of San Diego located
east of the northeast corner of Palm Street and Pacific Highway
identified as District Parcel No. 016-001 (Parcel 3).

(K) Property leased to Lichtenberger Equipment begin insert , end insert Incorporated,
located north of the northeast corner of Palm Street and Pacific
Highway identified as District Parcel No. 016-034.

(L) Property leased to Park and Ride, Incorporated, located at
the northeast corner of Sassafras and Pacific Highway identified
as District Parcel No. 016-038.

(M) Property leased to Ace Parking Management, Incorporated,
located north of the intersection of Sassafras Street and Pacific
Highway identified as District Parcel No. 016-040.

(N) Property leased to Federal Express Corporation located at
the west end of the extension of Washington Street identified as
District Parcel No. 015-008.

(b) All contracts with airport tenants, concessionaires,
leaseholders, and others, including, but not limited to, fees from
vehicle rental companies.

(c) All airport-related financial obligations secured by revenues
and fees generated from the operations of the airport, including,
but not limited to, bonded indebtedness associated with the airport.
The authority shall assume obligations issued or incurred by the
port for San Diego International Airport, including, but not limited
to, any long-term debt, grants, and grant assurances.

(d) All airport-related financial reserves, including, but not
limited to, sinking funds and other credits.

(e) All personal property, including, but not limited to,
emergency vehicles, office equipment, computers, records and
files, software required for financial management, personnel
management, and accounting and inventory systems, and any other
personal property owned by the port used to operate or maintain
the airport.

(f) Notwithstanding any provision of this section, the port shall
agree to lease for a period of 66 years, commencing on January 1,
2003, to the authority parcels 1, 2, and 3 of the property originally
leased to General Dynamics (identified in Document No. 12301
on file with the clerk of the port) consisting of approximately 89.75
acres west of the Pacific Highway and including property leased
to JimsAir (identified as Parcel #016-042), property leased to
Federal Express Corporation (identified as Parcel #015-008) and
the Park, Shuttle and Fly lot operated by Five Star Parking under
a management agreement with the port (identified as Clerk
Document No. 38334, dated March 29, 1999), subject to the
following terms:

(1) The rent shall be paid monthly in arrears and the annual rent
shall be level based on the fair market value of the property as of
January 1, 2006, and a market rate of return on that date.

(2) The authority shall lease to the port at the same fair market
value per square foot a total of not to exceed 250 parking spaces
in reasonable proximity to the port’s administrative building located
at 3165 Pacific Highway with the authority having a right to
relocate or substitute substantially equivalent or better parking
from time to time. The parties shall first meet and confer to
determine by appraisal and begin delete negotiation, end delete begin insert negotiation end insert the fair market
value rent. If the authority and port do not reach agreement within
60 days after commencement of meetings for that purpose, either
party may submit the matter to binding arbitration in San Diego
in accordance with the Commercial Arbitration Rules of the
American Arbitration Association. In the event airport operations
cease to exist on the property leased to the authority pursuant to
this section, control of the property will revert to the port as
provided in Section 170060.

(3) All other terms of the ground lease shall be in accordance
with reasonable commercial practice in the San Diego area for
long-term real property ground leases.

SEC. 159.  

Section 62 of the Revenue and Taxation Code is
amended to read:

62.  

Change in ownership begin delete shall end delete begin insert does end insert not include:

(a) (1) Any transfer between coowners that results in a change
in the method of holding title to the real property transferred
without changing the proportional interests of the coowners in that
real property, such as a partition of a tenancy in common.

(2) Any transfer between an individual or individuals and a legal
entity or between legal entities, such as a cotenancy to a
partnership, a partnership to a corporation, or a trust to a cotenancy,
that results solely in a change in the method of holding title to the
real property and in which proportional ownership interests of the
transferors and transferees, whether represented by stock,
partnership interest, or otherwise, in each and every piece of real
property transferred, remain the same after the transfer. begin delete The
provisions of this end delete begin insert This end insert paragraph shall not apply to transfers also
excluded from change in ownership under the provisions of
subdivision (b) of Section 64.

(b) Any transfer for the purpose of perfecting title to the
property.

(c) (1) The creation, assignment, termination, or reconveyance
of a security interest; or (2) the substitution of a trustee under a
security instrument.

(d) Any transfer by the trustor, or by the trustor’s spouse or
registered domestic partner, or by both, into a trust begin delete for so long as end delete
begin insert if end insert (1) the transferor is the present beneficiary of the begin delete trust, end delete begin insert trust end insert or
(2) the trust is revocable; or any transfer by a trustee of begin delete such end delete a trust
described in either clause (1) or (2) back to the trustor; or, any
creation or termination of a trust in which the trustor retains the
reversion and in which the interest of others does not exceed 12
years duration.

(e) Any transfer by an instrument whose terms reserve to the
transferor an estate for years or an estate for life. However, the
termination of such an estate for years or estate for life shall
constitute a change in ownership, except as provided in subdivision
(d) and in Section 63.

(f) The creation or transfer of a joint tenancy interest if the
transferor, after the creation or transfer, is one of the joint tenants
as provided in subdivision (b) of Section 65.

(g) Any transfer of a lessor’s interest in taxable real property
subject to a lease with a remaining term (including renewal options)
of 35 years or more. For the purpose of this subdivision, for
1979-80 and each year thereafter, it shall be conclusively presumed
that all homes eligible for the homeowners’ exemption, other than
manufactured homes located on rented or leased land and subject
to taxation pursuant to Part 13 (commencing with Section 5800)
and floating homes subject to taxation pursuant to Section 229,
that are on leased land have a renewal option of at least 35 years
on the lease of that land, whether or not begin delete in fact end delete that renewal option
exists in any contract or agreement.

(h) Any purchase, redemption, or other transfer of the shares or
units of participation of a group trust, pooled fund, common trust
fund, or other collective investment fund established by a financial
institution.

(i) Any transfer of stock or membership certificate in a housing
cooperative that was financed under one mortgage, provided that
mortgage was insured under Section 213, 221(d)(3), 221(d)(4), or
236 of the National Housing Act, as amended, or that housing
cooperative was financed or assisted pursuant to Section 514, 515,
or 516 of the Housing Act of 1949 or Section 202 of the Housing
Act of 1959, or the housing cooperative was financed by a direct
loan from the California Housing Finance Agency, and provided
that the regulatory and occupancy agreements were approved by
the governmental lender or insurer, and provided that the transfer
is to the housing cooperative or to a person or family qualifying
for purchase by reason of limited income. Any subsequent transfer
from the housing cooperative to a person or family not eligible for
state or federal assistance in reduction of monthly carrying charges
or interest reduction assistance by reason of the income level of
that person or family shall constitute a change of ownership.

(j) Any transfer during the period March 1, 1975, to March 1,
1981, between coowners in any property that was held by them as
coowners for all or part of that period, and which was eligible for
a homeowner’s exemption during the period of the coownership,
notwithstanding any other provision of this chapter. Any transferee
whose interest was revalued in contravention of the provisions of
this subdivision shall obtain a reversal of that revaluation with
respect to the 1980-81 assessment year and thereafter, upon
application to the county assessor of the county in which the
property is located filed on or before March 26, 1982. begin delete No refunds end delete
begin insert Refunds end insert shall begin insert not end insert be made under this subdivision for any
assessment year begin delete prior to end delete begin insert before end insert the 1980-81 fiscal year.

(k) Any transfer of property or an interest therein between a
corporation sole, a religious corporation, a public benefit
corporation, and a holding corporation begin insert , end insert as defined in Section
23701h begin insert , end insert holding title for the benefit of any of these corporations,
or any combination thereof (including any transfer from one entity
to the same type of entity), provided that both the transferee and
transferor are regulated by laws, rules, regulations, or canons of
the same religious denomination.

(l) Any begin delete transfer, end delete begin insert transfer end insert that would otherwise be a transfer
subject to reappraisal under this chapter, between or among the
same parties for the purpose of correcting or reforming a deed to
express the true intentions of the parties, provided that the original
relationship between the grantor and grantee is not changed.

(m) Any intrafamily transfer of an eligible dwelling unit from
a parent or parents or legal guardian or guardians to a minor child
or children or between or among minor siblings as a result of a
court order or judicial decree due to the death of the parent or
parents. As used in this subdivision, “eligible dwelling unit” means
the dwelling unit that was the principal place of residence of the
minor child or children prior to the transfer and remains the
principal place of residence of the minor child or children after
the transfer.

(n) Any transfer of an eligible dwelling unit, whether by will,
devise, or inheritance, from a parent or parents to a child or
children, or from a guardian or guardians to a ward or wards, if
the child, children, ward, or wards have been disabled, as provided
in subdivision begin delete (e) end delete begin insert (d) end insert of Section 12304 of the Welfare and
Institutions Code, for at least five years preceding the transfer and
if the child, children, ward, or wards have adjusted gross income
that, when combined with the adjusted gross income of a spouse
or spouses, parent or parents, and child or children, does not exceed
twenty thousand dollars ($20,000) in the year in which the transfer
occurs. As used in this subdivision, “child” or “ward” includes a
minor or an adult. As used in this subdivision, “eligible dwelling
unit” means the dwelling unit that was the principal place of
residence of the child or children, or ward or wards for at least five
years preceding the transfer and remains the principal place of
residence of the child or children, or ward or wards after the
transfer. Any transferee whose property was reassessed in
contravention of the provisions of this subdivision for the 1984-85
assessment year shall obtain a reversal of that reassessment upon
application to the county assessor of the county in which the
property is located. Application by the transferee shall be made to
the assessor no later than 30 days after the later of either the
transferee’s receipt of notice of reassessment pursuant to Section
75.31 or the end of the 1984-85 fiscal year.

(o) Any transfer of a possessory interest in tax-exempt real
property subject to a sublease with a remaining term, including
renewal options, that exceeds half the length of the remaining term
of the leasehold, including renewal options.

(p) (1) Commencing on January 1, 2000, any transfer between
registered domestic partners, as defined in Section 297 of the
Family Code, including, but not limited to:

(A) Transfers to a trustee for the beneficial use of a registered
domestic partner, or the surviving registered domestic partner of
a deceased transferor, or by a trustee of such a trust to the registered
domestic partner of the trustor.

(B) Transfers that take effect upon the death of a registered
domestic partner.

(C) Transfers to a registered domestic partner or former
registered domestic partner in connection with a property settlement
agreement or decree of dissolution of a registered domestic
partnership or legal separation.

(D) The creation, transfer, or termination, solely between
registered domestic partners, of any coowner’s interest.

(E) The distribution of a legal entity’s property to a registered
domestic partner or former registered domestic partner in exchange
for the interest of the registered domestic partner in the legal entity
in connection with a property settlement agreement or a decree of
dissolution of a registered domestic partnership or legal separation.

(2) Any transferee whose property was reassessed in
contravention of the provisions of this subdivision for a transfer
occurring between January 1, 2000, and January 1, 2006, shall
obtain a reversal of that reassessment upon application to the
county assessor of the county in which the property is located.
Application by the transferee shall be made to the assessor no later
than June 30, 2009. A county may charge a fee for its costs related
to the application and reassessment reversal in an amount that does
not exceed the actual costs incurred. This paragraph shall be
liberally construed to provide the benefits of this subdivision and
Article XIII A of the California Constitution to registered domestic
partners.

(A) After consultation with the California Assessors’
Association, the State Board of Equalization shall prescribe the
form for claiming the reassessment reversal described in paragraph
(2). The claim form shall be entitled “Claim for Reassessment
Reversal for Registered Domestic Partners.” The claim shall state
on its face that a “certificate of registered domestic partnership”
is available upon request from the California Secretary of State.

(B) The information on the claim shall include a description of
the property, the parties to the transfer of interest in the property,
the date of the transfer of interest in the property, and a statement
that the transferee registered domestic partner and the transferor
registered domestic partner were, on the date of transfer, in a
registered domestic partnership as defined in Section 297 of the
Family Code.

(C) The claimant shall declare that the information provided on
the form is true, correct, and complete to the best of his or her
knowledge and belief.

(D) The claimant shall provide with the completed claim the
“Certificate of Registered Domestic Partnership,” or photocopy
thereof, naming the transferee and transferor as registered domestic
partners and reflecting the creation of the registered domestic
partnership on a date prior to, or concurrent with, the date of the
transfer for which a reassessment reversal is requested.

(E) Any reassessment reversal granted pursuant to a claim shall
apply commencing with the lien date of the assessment year, as
defined in Section 118, in which the claim is filed. begin delete No refunds end delete
begin insert Refunds end insert shall begin insert not end insert be made under this paragraph for any prior
assessment year.

(F) Under any reassessment reversal granted pursuant to that
claim, the adjusted full cash value of the subject real property in
the assessment year described in subparagraph (E) shall be the
adjusted base year value of the subject real property in the
assessment year in which the excluded purchase or transfer took
place, factored to the assessment year described in subparagraph
(E) for both of the following:

(i) Inflation as annually determined in accordance with
paragraph (1) of subdivision (a) of Section 51.

(ii) Any subsequent new construction occurring with respect to
the subject real property.

SEC. 160.  

Section 2615.6 of the Revenue and Taxation Code
is amended to read:

2615.6.  

(a) When the county sends to any person a tax bill, it
shall be accompanied by a notice regarding property tax assistance
and postponement for senior citizens under the
Gonsalves-Deukmejian-Petris Senior Citizens Property Tax
Assistance Law begin insert (Chapter 1 (commencing with Section 20501) of
Part 10.5 of Division 2) end insert and the Senior Citizens begin insert and Disabled
Citizens end insert Property Tax Postponement Law begin insert (Chapter 2 (commencing
with Section 20581) of Part 10.5 of Division 2) end insert . The text of this
notice shall be prepared by the Franchise Tax Board.

(b) Subdivision (a) is inoperative for any lien date for which
funding for the Gonsalves-Deukmejian-Petris Senior Citizens
Property Tax Assistance Law (Chapter 1 (commencing with
Section 20501) of Part 10.5 of Division 2), and for the Senior
Citizens and Disabled Citizens Property Tax Postponement Law
(Chapter 2 (commencing with Section 20581) of Part 10.5 of
Division 2), is not provided by state law. If subdivision (a) has
become inoperative under this subdivision, subdivision (a) shall
become operative again commencing with the first lien date for
which funding for these laws is provided by state law.

SEC. 161.  

Section 17053.57 of the Revenue and Taxation Code
is amended to read:

17053.57.  

(a) For each taxable year beginning on or after
January 1, 1997, and before January 1, 2017, there shall be allowed
as a credit against the amount of “net tax,” as defined in Section
17039, an amount equal to 20 percent of the amount of each
qualified investment made by a taxpayer during the taxable year
into a community development financial institution that is certified
by the Department of Insurance, California Organized Investment
Network, or any successor thereof.

(b) (1) Notwithstanding any other provision of this part, a credit
shall not be allowed under this section unless the California
Organized Investment Network, or its successor within the
Department of Insurance, certifies that the investment described
in subdivision (a) qualifies for the credit under this section and
certifies the total amount of the credit allocated to the taxpayer
pursuant to this section.

(2) A credit shall not be allowed by this section unless the
applicant and the taxpayer provide satisfactory substantiation to,
and in the form and manner requested by, the Department of
Insurance, California Organized Investment Network, or any
successor thereof, that the investment is a qualified investment, as
defined in paragraph (1) of subdivision (g).

(3) (A) The aggregate amount of qualified investments made
by all taxpayers pursuant to this section, Section 12209, and Section
23657 shall not exceed fifty million dollars ($50,000,000) for each
calendar year. However, if the aggregate amount of qualified
investments made in any calendar year is less than fifty million
dollars ($50,000,000), the difference may be carried over to the
next year, and any succeeding year during which this section
remains in effect, and added to the aggregate amount authorized
for those years.

(B) The total amount of qualified investments certified by the
California Organized Investment Network in any calendar year to
any one community development financial institution together
with its affiliates, as defined in Section 1215 of the Insurance Code,
shall not exceed 30 percent of the annual aggregate amount of
qualified investments certified by the California Organized
Investment Network. If, after October 1, the California Organized
Investment Network has determined that the availability of tax
credits exceed their demand, then a community development
financial institution that has been allocated 30 percent of the annual
aggregate amount of qualified investments shall become eligible
to apply to be certified for any remaining tax credits in that calendar
year.

(C) Each year, 10 percent of the annual aggregate amount of
qualified investments shall be reserved for investment amounts of
less than or equal to two hundred thousand dollars ($200,000). If,
after October 1, there remains an unallocated portion of the amount
reserved for investments of less than or equal to two hundred
thousand dollars ($200,000), then qualified investments in excess
of two hundred thousand dollars ($200,000) may be eligible for
that remaining unallocated portion.

(4) Priority among housing applications shall be given to
applications that support affordable rental housing, housing for
veterans, mortgages for community-based residential programs,
and self-help housing ahead of single-family owned housing.

(c) The community development financial institution shall do
all of the following:

(1) Apply to the Department of Insurance, California Organized
Investment Network, or its successor, for certification of its status
as a community development financial institution.

(2) (A) Apply to the Department of Insurance, California
Organized Investment Network, or its successor, on behalf of the
taxpayer, for certification of the amount of the investment and the
credit amount allocated to the taxpayer, obtain the certification,
and retain a copy of the certification.

(B) Provide in the application a detailed description of the
intended use of the investment funds including, but not limited to,
the following:

(i) All of the programs, projects, and services that would be
funded.

(ii) The percentage of the intended use of the investment funds
that would directly benefit low-to-moderate income households.

(iii) The percentage of the intended use of the investment funds
that would directly benefit rural areas.

(iv) The percentage of the intended use of the investment funds
that is a green investment as defined in Section 926.1 of the
Insurance Code.

(3) (A) Provide in the application required in paragraph (2) the
following information to the Department of Insurance, California
Organized Investment Network, or its successor:

(i) Name of the taxpayer.

(ii) Postal address of the taxpayer, or residential address of the
taxpayer if the taxpayer is an individual.

(iii) Phone number of the taxpayer.

(iv) Email address of the taxpayer.

(v) The taxpayer’s identification number, or in the case of a
partnership, the taxpayer identification numbers of all the partners
for tax administration purposes.

(B) The information provided in subparagraph (A) shall be used
only for internal purposes by the Department of Insurance,
California Organized Investment Network, or its successor, and
any begin delete Network, end delete begin insert network end insert or its successor shall limit all public
disclosure of that information begin delete shall be limited end delete to the name of the
taxpayer only.

(4) Provide an annual listing to the Franchise Tax Board, in the
form and manner agreed upon by the Franchise Tax Board and the
Department of Insurance, California Organized Investment
Network, or its successor, of the names and taxpayer identification
numbers of any taxpayer who makes any withdrawal or partial
withdrawal of a qualified investment before the expiration of 60
months from the date of the qualified investment.

(5) Submit reports to the begin delete department, end delete begin insert Department of Insurance, end insert
California Organized Investment Network, or any successor
thereof, as required pursuant to subdivision (a) of Section 12939.1
of the Insurance Code.

(d) (1) The Insurance Commissioner may develop instructions,
procedures, and standards for applications, and for administering
the criteria for the evaluation of applications under this section.
The Insurance Commissioner may, from time to time, adopt,
amend, or repeal regulations to implement the provisions of this
section.

(2) The initial adoption of the regulations implementing this
section shall be deemed to be an emergency and necessary in order
to address a situation calling for immediate action to avoid serious
harm to the public peace, health, safety, or general welfare.

(3) Notwithstanding Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code,
any emergency regulation adopted or amended by the Insurance
Commissioner pursuant to this section shall remain in effect until
amended or repealed by the department.

(e) The California Organized Investment Network may certify
investments for the credit allowed by this section on or before
January 1, 2017, but not after that date.

(f) The Department of Insurance, California Organized
Investment Network, or any successor thereof, shall do all of the
following:

(1) Accept and evaluate applications for certification from
financial institutions and issue certificates that the applicant is a
community development financial institution qualified to receive
qualified investments. To receive a certificate, an applicant shall
satisfy the Department of Insurance, California Organized
Investment Network, or any successor thereof, that it meets the
specific requirements to be a community development financial
institution for this state program as defined in paragraph (2) of
subdivision (g). The certificate may be issued for a specified period
of time, and may include reasonable conditions to effectuate the
intent of this section. The Insurance Commissioner may suspend
or revoke a certification, after affording the institution notice and
the opportunity to be heard, if the commissioner finds that an
institution no longer meets the requirement for certification.

(2) Accept and evaluate applications for certification from begin delete any end delete
begin insert a end insert community development financial institution on behalf of the
taxpayer and issue certificates to taxpayers in an aggregate amount
that shall not exceed the limit specified in subdivision (b), with
highest priority granted to those applications where the intended
use of the investments has the greatest aggregate benefit for
low-to-moderate income areas or households or rural areas or
households. The certificate shall include the amount eligible to be
made as an investment that qualifies for the credit and the total
amount of the credit to which the taxpayer is entitled for the taxable
year. Applications for tax credits shall be accepted and evaluated
throughout the year. The Insurance Commissioner shall establish
tax credit issuance cycles throughout the year as necessary in order
to issue tax credit certificates to those applications granted the
highest priority.

(3) Provide an annual listing to the Franchise Tax Board, in the
form or manner agreed upon by the Franchise Tax Board and the
Department of Insurance, California Organized Investment
Network, or its successor, of the taxpayers who were issued
certificates, their respective tax identification numbers, the amount
of the qualified investment made by each taxpayer, and the total
amount of qualified investments.

(4) Include information specified pursuant to subdivision (b) of
Section 12939.1 of the Insurance Code in the report required by
Section 12922 of the Insurance Code.

(g) For purposes of this section:

(1) “Qualified investment” means an investment that is a deposit
or loan that does not earn interest, or an equity investment, or an
equity-like debt instrument that conforms to the specifications for
these instruments as prescribed by the United States Department
of the Treasury, Community Development Financial Institutions
Fund, or its successor, or, in the absence of that prescription, as
defined by the Insurance Commissioner. The investment must be
equal to or greater than fifty thousand dollars ($50,000) and made
for a minimum duration of 60 months. During that 60-month
period, the community development financial institution shall have
full use and control of the proceeds of the entire amount of the
investment as well as any earnings on the investment for its
community development purposes. The entire amount of the
investment shall be received by the community development
financial institution before the application for the tax credit is
submitted. The community development financial institution shall
use the proceeds of the investment for a purpose that is consistent
with its community development mission and for the benefit of
economically disadvantaged communities and low-income people
in California.

(2) “Community development financial institution” means a
private financial institution located in this state that is certified by
the Department of Insurance, California Organized Investment
Network, or its successor, that, consistent with the legislative
findings, declarations, and intent set forth in Section 12939 of the
Insurance Code, has community development as its primary
mission, and that lends in urban, rural, or reservation-based
communities in this state. A community development financial
institution may include a community development bank, a
community development loan fund, a community development
credit union, a microenterprise fund, a community development
corporation-based lender, or a community development venture
fund.

(h) (1) If a qualified investment is withdrawn before the end
of the 60th month and not reinvested in another community
development financial institution within 60 days, there shall be
added to the “net tax,” as defined in Section 17039, for the taxable
year in which the withdrawal occurs, the entire amount of any
credit previously allowed under this section.

(2) If a qualified investment is reduced before the end of the
60th month, but not below fifty thousand dollars ($50,000), there
shall be added to the “net tax,” as defined in Section 17039, for
the taxable year in which the reduction occurs, an amount equal
to 20 percent of the total reduction for the taxable year.

(i) In the case where the credit allowed by this section exceeds
the “net tax,” the excess may be carried over to reduce the “net
tax” for the next four taxable years, or until the credit has been
exhausted, whichever occurs first.

(j) The Franchise Tax Board shall, as requested by the
Department of Insurance, California Organized Investment
Network, or its successor, advise and assist in the administration
of this section.

(k) On or before June 30, 2016, the Legislative Analyst’s Office
shall submit a report to the Legislature, in compliance with Section
9795 of the Government Code, on the effects of the tax credits
allowed under this section, Section 12209, and Section 23657,
with a focus on employment in low-to-moderate income and rural
areas, and on the benefits of these tax credits to low-to-moderate
income and rural persons.

(l) This section shall remain in effect only until December 1,
2017, and as of that date is repealed.

SEC. 162.  

Section 18796 of the Revenue and Taxation Code
is amended to read:

18796.  

(a) This article shall remain in effect only until January
1, 2018, and as of that date is repealed.

(b) (1) By September 1, 2006, and by September 1 of each
subsequent calendar year that the California Breast Cancer
Research Fund appears on a tax return, the Franchise Tax Board
shall do all of the following:

(A) Determine the minimum contribution amount required to
be received during the next calendar year for the fund to appear
on the tax return for the taxable year that includes that next calendar
year.

(B) Provide written notification to the University of California
of the amount determined in subparagraph (A).

(C) Determine whether the amount of contributions estimated
to be received during the calendar year will equal or exceed the
minimum contribution amount determined by the Franchise Tax
Board for the calendar year pursuant to subparagraph (A). The
Franchise Tax Board shall estimate the amount of the contributions
to be received by using the actual amounts received and an estimate
of the contributions that will be received by the end of that calendar
year.

(2) If the Franchise Tax Board determines that the amount of
contributions estimated to be received during a calendar year will
not at least equal the minimum contribution amount for the calendar
year, this article is repealed with respect to taxable years beginning
on or after January 1 of that calendar year.

(3) For purposes of this section, the minimum contribution
amount for a calendar year means two hundred fifty thousand
dollars ($250,000) for the 1997 calendar year or the minimum
contribution amount adjusted pursuant to subdivision (c).

(c) Except as provided in subdivision (d), each calendar year,
beginning with calendar year 1998, the Franchise Tax Board shall
adjust, on or before September 1 of that calendar year, the
minimum contribution amount specified in subdivision (b) as
follows:

(1) The minimum contribution amount for the calendar year
shall be an amount equal to the product of the minimum
contribution amount for the prior calendar year multiplied by the
inflation factor adjustment as specified in paragraph (2) of
subdivision (h) of Section 17041, rounded off to the nearest dollar.

(2) The inflation factor adjustment used for the calendar year
shall be based on the figures for the percentage change in the
California Consumer Price Index that are received on or before
August 1 of the calendar year pursuant to paragraph (1) of
subdivision (h) of Section 17041.

(d) For calendar years 2014 and 2015 begin insert , end insert the minimum contribution
shall be equal to the minimum contribution amount for the 2013
calendar year. This amount shall be adjusted pursuant to
subdivision (c) beginning with the 2016 calendar year.

(e) Notwithstanding the repeal of this article, any contribution
amounts designated pursuant to this article begin delete prior to end delete begin insert before end insert its repeal
shall continue to be transferred and disbursed in accordance with
this article as in effect immediately begin delete prior to end delete begin insert before end insert that repeal.

SEC. 163.  

Section 19136 of the Revenue and Taxation Code
is amended to read:

19136.  

(a) Section 6654 of the Internal Revenue Code, relating
to failure by an individual to pay estimated income tax, shall apply,
except as otherwise provided.

(b) Section 6654(a)(1) of the Internal Revenue Code is modified
to refer to the rate determined under Section 19521 in lieu of
Section 6621 of the Internal Revenue Code.

(c) (1) Section 6654(e)(1) of the Internal Revenue Code, relating
to exceptions where the tax is a small amount, does not apply.

(2) No addition to the tax shall be imposed under this section
if the tax imposed under Section 17041 or 17048 and the tax
imposed under Section 17062 for the preceding taxable year, minus
the sum of any credits against the tax provided by Part 10
(commencing with Section 17001) or this part, or the tax computed
under Section 17041 or 17048 upon the estimated income for the
taxable year, minus the sum of any credits against the tax provided
by Part 10 (commencing with Section 17001) or this part, is less
than five hundred dollars ($500), except in the case of a separate
return filed by a married person the amount shall be less than two
hundred fifty dollars ($250).

(d) Section 6654(f) of the Internal Revenue Code does not apply
and for purposes of this section the term “tax” means the tax
imposed under Section 17041 or 17048 and the tax imposed under
Section 17062 less any credits against the tax provided by Part 10
(commencing with Section 17001) or this part, other than the credit
provided by subdivision (a) of Section 19002.

(e) (1) The credit for tax withheld on wages, as specified in
Section 6654(g) of the Internal Revenue Code, begin delete shall be end delete begin insert is end insert the credit
allowed under subdivision (a) of Section 19002.

(2) (A) Section 6654(g)(1) of the Internal Revenue Code is
modified by substituting the phrase “the applicable percentage”
for the phrase “an equal part.”

(B) For purposes of this paragraph, “applicable percentage”
means the percentage amount prescribed under Section
6654(d)(1)(A) of the Internal Revenue Code, as modified by
subdivision (a) of Section 19136.1.

(f) This section begin delete shall apply end delete begin insert applies end insert to a nonresident individual.

(g) (1) No addition to tax shall be imposed under this section
to the extent that the underpayment was created or increased by
any begin delete provision of end delete law that is chaptered during and operative for the
taxable year of the underpayment.

(2) Notwithstanding Section 18415, this section applies to
penalties imposed under this section on and after January 1, 2005.

(h) The amendments made to this section by Section 5 of
Chapter 305 of the Statutes of 2008 begin delete shall end delete apply to taxable years
beginning on or after January 1, 2009.

(i) The amendments made to this section by the act adding this
subdivision begin delete shall end delete apply to amounts withheld on wages beginning
begin insert on end insert or after January 1, 2009.

SEC. 164.  

Section 19164 of the Revenue and Taxation Code
is amended to read:

19164.  

(a) (1) (A) An accuracy-related penalty shall be
imposed under this part and shall be determined in accordance
with Section 6662 of the Internal Revenue Code, relating to
imposition of accuracy-related penalty on underpayments, as
amended by Section 1409(b) of the Health Care and Education
Reconciliation Act of 2010 (Public Law 111-152), except as
otherwise provided.

(B) (i) Except for understatements relating to reportable
transactions to which Section 19164.5 applies, in the case of any
proposed deficiency assessment issued after the last date of the
amnesty period specified in Chapter 9.1 (commencing with Section
19730) for any taxable year beginning prior to January 1, 2003,
the penalty specified in Section 6662(a) of the Internal Revenue
Code shall be computed by substituting “40 percent” for “20
percent.”

(ii) Clause (i) shall not apply to any taxable year of a taxpayer
beginning prior to January 1, 2003, if, as of the start date of the
amnesty program period specified in Section 19731, the taxpayer
is then under audit by the Franchise Tax Board, or the taxpayer
has filed a protest under Section 19041, or the taxpayer has filed
an appeal under Section 19045, or the taxpayer is engaged in
settlement negotiations under Section 19442, or the taxpayer has
a pending judicial proceeding in any court of this state or in any
federal court relating to the tax liability of the taxpayer for that
taxable year.

(2) With respect to corporations, this subdivision begin delete shall apply end delete
begin insert applies end insert to all of the following:

(A) All taxable years beginning on or after January 1, 1990.

(B) Any other taxable year for which an assessment is made
after July 16, 1991.

(C) For purposes of this section, references in Section 6662(e)
of the Internal Revenue Code and the regulations thereunder,
relating to treatment of an affiliated group that files a consolidated
federal return, are modified to apply to those entities required to
be included in a combined report under Section 25101 or 25110.
For these purposes, entities included in a combined report pursuant
to paragraph (4) or (6) of subdivision (a) of Section 25110 shall
be considered only to the extent required to be included in the
combined report.

(3) Section 6662(d)(1)(B) of the Internal Revenue Code is
modified to provide that in the case of a corporation, other than
an “S” corporation, there is a substantial understatement of tax for
any taxable year if the amount of the understatement for the taxable
year exceeds the lesser of:

(A) Ten percent of the tax required to be shown on the return
for the taxable year (or, if greater, two thousand five hundred
dollars ($2,500)).

(B) Five million dollars ($5,000,000).

(4) Section 6662(d)(2)(A) of the Internal Revenue Code is
modified to additionally provide that the excess determined under
Section 6662(d)(2)(A) of the Internal Revenue Code shall be
determined without regard to items to which Section 19164.5
applies and without regard to items with respect to which a penalty
is imposed by Section 19774.

(5) The provisions of Sections 6662(e)(1) and 6662(h)(2) of the
Internal Revenue Code shall apply to returns filed on or after
January 1, 2010.

(b) For purposes of Section 6662(d) of the Internal Revenue
Code, Section 6664 of the Internal Revenue Code, Section
6694(a)(1) of the Internal Revenue Code, and this part, the
Franchise Tax Board may prescribe a list of positions for which
the Franchise Tax Board believes there is not substantial authority
or there is no reasonable belief that the tax treatment is more likely
than not the proper tax treatment. That list (and any revisions
thereof) shall be published through the use of Franchise Tax Board
Notices or other published positions. In addition, the “listed
transactions” identified and published pursuant to the preceding
sentence shall be published on the begin insert Internet end insert Web site of the
Franchise Tax Board.

(c) A fraud penalty shall be imposed under this part and shall
be determined in accordance with Section 6663 of the Internal
Revenue Code, relating to imposition of fraud penalty, except as
otherwise provided.

(d) (1) Section 6664 of the Internal Revenue Code, relating to
definitions and special rules, begin delete shall apply, end delete begin insert applies, end insert except as
otherwise provided.

(2) Section begin delete 6664(c)(3) end delete begin insert 6664(c)(2) end insert of the Internal Revenue Code
begin delete shall apply end delete begin insert applies end insert to returns filed on or after January 1, 2010.

(3) Section begin delete 6664(c)(4) end delete begin insert 6664(c)(3) end insert of the Internal Revenue Code
begin delete shall apply end delete begin insert applies end insert to appraisals prepared with respect to returns
or submissions filed on or after January 1, 2010.

(e) Except for purposes of subdivision (e) of Section 19774,
Section 6662(b)(6) of the Internal Revenue Code begin delete shall end delete begin insert does end insert not
apply.

(f) Except for purposes of subdivision (e) of Section 19774,
Section 6662(i) of the Internal Revenue Code, relating to increase
in penalty in case of nondisclosed noneconomic substance
transactions, begin delete shall end delete begin insert does end insert not apply.

(g) Section 6665 of the Internal Revenue Code, relating to
applicable rules, shall apply, except as otherwise provided.

(h) The amendments made to this section by the act adding this
subdivision begin delete shall end delete apply to notices mailed on or after January 1,
2012.

SEC. 165.  

Section 19555 of the Revenue and Taxation Code
is amended to read:

19555.  

(a) Notwithstanding any other begin delete provision of end delete law, the
State Department of Social Services and the begin delete State Department of
Health Services end delete begin insert Department of Health Care Services end insert shall inform
the Franchise Tax Board of the names and social security numbers
of applicants for begin insert , end insert or recipients of begin insert , end insert public social services programs
under Division 9 (commencing with Section 10000) of the Welfare
and Institutions Code.

(b) The Franchise Tax Board, upon receipt of this information,
may inform the departments of any such applicant or recipient
who received unearned income within the most recent available
tax year, as reflected on magnetic tape information returns supplied
to the Franchise Tax Board by payers, or on the magnetic tape
prepared by the Franchise Tax Board which reflects paper
information returns supplied to the Franchise Tax Board by payers.
In addition, the Franchise Tax Board may provide, from those
sources, the departments with the payee’s name, social security
number, and address; the payer’s name and federal employer
identification number, including branch code numbers, if
applicable, and address; the dollar amount and type of unearned
income; and any identifying account numbers.

(c) The Franchise Tax Board shall return all information
received from the departments after completing the exchange of
information.

(d) This section shall be implemented only to the extent it is
funded in the annual Budget Act.

SEC. 166.  

Section 20125 of the Revenue and Taxation Code
is amended and renumbered to read:

begin delete 20125. end delete
begin insert 21025. end insert   

begin delete [21025.] end delete begin delete   end delete If begin delete any end delete begin insert a end insert payment is received on or after
January 1, 1998, by the board from begin delete any end delete begin insert a end insert taxpayer and the board
cannot associate the payment with the taxpayer, the board shall
make reasonable efforts to notify the taxpayer of the inability
within 60 days after the receipt of the payment.

SEC. 167.  

Section 1653.5 of the Vehicle Code, as added by
Section 4 of Chapter 524 of the Statutes of 2013, is amended to
read:

1653.5.  

(a) Each form prescribed by the department for use
by an applicant for the issuance or renewal by the department of
a driver’s license or identification card pursuant to Division 6
(commencing with Section 12500) shall contain a section for the
applicant’s social security account number.

(b) Each form prescribed by the department for use by an
applicant for the issuance, renewal, or transfer of the registration
or certificate of title to a vehicle shall contain a section for the
applicant’s driver’s license or identification card number.

(c) Except as provided in Section 12801, a person who submits
to the department a form that, pursuant to subdivision (a), contains
a section for the applicant’s social security account number, or
pursuant to subdivision (b), the applicant’s driver’s license or
identification card number, if any, shall furnish the appropriate
number in the space provided.

(d) Except as provided in Section 12801, the department shall
not complete an application that does not include the applicant’s
social security account number or driver’s license or identification
card number as required under subdivision (c).

(e) An applicant’s social security account number shall not be
included by the department on a driver’s license, identification
card, registration, certificate of title, or any other document issued
by the department.

(f) Notwithstanding any other law, information regarding an
applicant’s social security account number, obtained by the
department pursuant to this section, is not a public record and shall
not be disclosed by the department except for any of the following
purposes:

(1) Responding to a request for information from an agency
operating pursuant to, and carrying out the provisions of, Part A
begin delete (Aid to Families with Dependent Children), end delete begin insert (Block Grants to States
for Temporary Assistance for Needy Families), end insert or Part D (Child
Support and Establishment of Paternity), of Subchapter IV of
Chapter 7 of Title 42 of the United States Code.

(2) Implementation of Section 12419.10 of the Government
Code.

(3) Responding to information requests from the Franchise Tax
Board for the purpose of tax administration.

(g) This section shall become operative on January 1, 2015, or
on the date that the director executes a declaration pursuant to
Section 12801.11, whichever is sooner.

(h) This section shall become inoperative on the effective date
of a final judicial determination made by any court of appellate
jurisdiction that any provision of the act that added this section,
or its application, either in whole or in part, is enjoined, found
unconstitutional, or held invalid for any reason. The department
shall post this information on its Internet Web site.

SEC. 168.  

Section 1653.5 of the Vehicle Code, as added by
Section 5 of Chapter 524 of the Statutes of 2013, is amended to
read:

1653.5.  

(a) Each form prescribed by the department for use
by an applicant for the issuance or renewal by the department of
a driver’s license or identification card pursuant to Division 6
(commencing with Section 12500) shall contain a section for the
applicant’s social security account number.

(b) Each form prescribed by the department for use by an
applicant for the issuance, renewal, or transfer of the registration
or certificate of title to a vehicle shall contain a section for the
applicant’s driver’s license or identification card number.

(c) A person who submits to the department a form that, pursuant
to subdivision (a), contains a section for the applicant’s social
security account number, or pursuant to subdivision (b), the
applicant’s driver’s license or identification card number, if any,
shall furnish the appropriate number in the space provided.

(d) The department shall not complete an application that does
not include the applicant’s social security account number or
driver’s license or identification card number as required under
subdivision (c).

(e) An applicant’s social security account number shall not be
included by the department on a driver’s license, identification
card, registration, certificate of title, or any other document issued
by the department.

(f) Notwithstanding any other law, information regarding an
applicant’s social security account number, obtained by the
department pursuant to this section, is not a public record and begin delete may end delete
begin insert shall end insert not be disclosed by the department except for any of the
following purposes:

(1) Responding to a request for information from an agency
operating pursuant to, and carrying out the provisions of, Part A
begin delete (Aid to Families with Dependent Children), end delete begin insert (Block Grants to States
for Temporary Assistance for Needy Families), end insert or Part D (Child
Support and Establishment of Paternity), of Subchapter IV of
Chapter 7 of Title 42 of the United States Code.

(2) Implementation of Section 12419.10 of the Government
Code.

(3) Responding to information requests from the Franchise Tax
Board for the purpose of tax administration.

(g) This section shall become operative on the effective date of
a final judicial determination made by any court of appellate
jurisdiction that any provision of the act that added this section,
or its application, either in whole or in part, is enjoined, found
unconstitutional, or held invalid for any reason. The department
shall post this information on its Internet Web site.

SEC. 169.  

Section 2810.2 of the Vehicle Code is amended to
read:

2810.2.  

(a) (1) A peace officer, as described in Chapter 4.5
(commencing with Section 830) of Title 3 of Part 2 of the Penal
Code, may stop begin delete any end delete begin insert a end insert vehicle transporting agricultural irrigation
supplies that are in plain view to inspect the bills of lading,
shipping, or delivery papers, or other evidence to determine
whether the driver is in legal possession of the load, if the vehicle
is on a rock road or unpaved road that is located in a county that
has elected to implement this section and the road is located as
follows:

(A) Located under the management of the Department of Parks
and Recreation, the Department of Fish and Wildlife, the
Department of Forestry and Fire Protection, the State Lands
Commission, a regional park district, the United States Forest
Service, or the begin insert federal end insert Bureau of Land Management.

(B) Located within the respective ownership of a timberland
production zone, as defined in Chapter 6.7 (commencing with
Section 51100) begin insert of Part 1 end insert of Division 1 of Title 5 of the Government
Code, either that is larger than 50,000 acres or for which the owner
of more than 2,500 acres has given express written permission for
a vehicle to be stopped within that zone pursuant to this section.

(2) Upon reasonable belief that the driver of the vehicle is not
in legal possession, the law enforcement officer specified in
paragraph (1) shall take custody of the vehicle and load and turn
them over to the custody of the sheriff of the county that has elected
to implement this section where the agricultural irrigation supplies
are apprehended.

(b) The sheriff shall receive and provide for the care and
safekeeping of the apprehended agricultural irrigation supplies
that were in plain view within the boundaries of public lands under
the management of the entities listed in subparagraph (A) of
paragraph (1) of subdivision (a) or on a timberland production
zone as specified in subparagraph (B) of paragraph (1) of
subdivision (a), and immediately, in cooperation with the
department, proceed with an investigation and its legal disposition.

(c)  begin delete Any end delete begin insert An end insert expense incurred by the sheriff in the performance
of his or her duties under this section shall be a legal charge against
the county.

(d) Except as provided in subdivision (e), a peace officer shall
not cause the impoundment of a vehicle at a traffic stop made
pursuant to subdivision (a) if the driver’s only offense is a violation
of Section 12500.

(e) During the conduct of pulling a driver over in accordance
with subdivision (a), if the peace officer encounters a driver who
is in violation of Section 12500, the peace officer shall make a
reasonable attempt to identify the registered owner of the vehicle.
If the registered owner is present, or the peace officer is able to
identify the registered owner and obtain the registered owner’s
authorization to release the motor vehicle to a licensed driver
during the vehicle stop, the vehicle shall be released to either the
registered owner of the vehicle if he or she is a licensed driver or
to the licensed driver authorized by the registered owner of the
vehicle. If a notice to appear is issued, the name and the driver’s
license number of the licensed driver to whom the vehicle was
released pursuant to this subdivision shall be listed on the officer’s
copy of the notice to appear issued to the unlicensed driver. begin delete When end delete
begin insert If end insert a vehicle cannot be released, the vehicle shall be removed
pursuant to subdivision (p) of Section 22651, whether a notice to
appear has been issued or not.

(f) For purposes of this section, “agricultural irrigation supplies”
include agricultural irrigation water bladder and one-half inch
diameter or greater irrigation line.

(g) This section shall be implemented only in a county where
the board of supervisors adopts a resolution authorizing the
enforcement of this section.

SEC. 170.  

Section 12801 of the Vehicle Code, as added by
Section 10 of Chapter 524 of the Statutes of 2013, is amended to
read:

12801.  

(a) Except as provided in subdivisions (b) and (c) and
Section 12801.9, the department shall require an application for a
driver’s license to contain the applicant’s social security account
number and any other number or identifier determined to be
appropriate by the department.

(b) An applicant who provides satisfactory proof that his or her
presence in the United States is authorized under federal law, but
who is not eligible for a social security account number, is eligible
to receive an original driver’s license if he or she meets all other
qualifications for licensure.

(c) (1) An applicant who is unable to provide satisfactory proof
that his or her presence in the United States is authorized under
federal law may sign an affidavit attesting that he or she is both
ineligible for a social security account number and unable to submit
satisfactory proof that his or her presence in the United States is
authorized under federal law. This affidavit is not a public record.

(2) The submission of this affidavit shall be accepted by the
department in lieu of a social security account number.

(3) This subdivision shall not apply to applications for a
commercial driver’s license. The department shall require all
applications for a commercial driver’s license to include the
applicant’s social security account number.

(4) Nothing in this section shall be used to consider an
individual’s citizenship or immigration status as a basis for a
criminal investigation, arrest, or detention.

(d) The department shall not complete an application for a
driver’s license unless the applicant is in compliance with the
requirements of subdivision (a), (b) begin insert , end insert or (c).

(e) Notwithstanding any other law, the social security account
number collected on a driver’s license application shall not be
displayed on the driver’s license begin insert , end insert including, but not limited to,
inclusion on a magnetic tape or strip used to store data on the
license.

(f) This section shall become operative on January 1, 2015, or
on the date that the director executes a declaration pursuant to
Section 12801.11, whichever is sooner.

(g) This section shall become inoperative on the effective date
of a final judicial determination made by any court of appellate
jurisdiction that any provision of the act that added this section,
or its application, either in whole or in part, is enjoined, found
unconstitutional, or held invalid for any reason. The department
shall post this information on its Internet Web site.

SEC. 171.  

Section 12801 of the Vehicle Code, as added by
Section 11 of Chapter 524 of the Statutes of 2013, is amended to
read:

12801.  

(a) Notwithstanding any other law, the department
shall require an application for a driver’s license to contain the
applicant’s social security account number and any other number
or identifier determined to be appropriate by the department.

(b) Notwithstanding subdivision (a), an applicant who provides
satisfactory proof that his or her presence in the United States is
authorized under federal law, but who is not eligible for a social
security account number, is eligible to receive an original driver’s
license if he or she meets all other qualifications for licensure.

(c) Notwithstanding any other law, the social security account
number collected on a driver’s license application shall not be
displayed on the driver’s license begin insert , end insert including, but not limited to,
inclusion on a magnetic tape or strip used to store data on the
license.

(d) This section shall become operative on the effective date of
a final judicial determination made by any court of appellate
jurisdiction that any provision of the act that added this section,
or its application, either in whole or in part, is enjoined, found
unconstitutional, or held invalid for any reason. The department
shall post this information on its Internet Web site.

SEC. 172.  

Section 12801.9 of the Vehicle Code is amended to
read:

12801.9.  

(a) Notwithstanding Section 12801.5, the department
shall issue an original driver’s license to a person who is unable
to submit satisfactory proof that the applicant’s presence in the
United States is authorized under federal law if he or she meets
all other qualifications for licensure and provides satisfactory proof
to the department of his or her identity and California residency.

(b) The department shall adopt emergency regulations to carry
out the purposes of this section, including, but not limited to,
procedures for (1) identifying documents acceptable for the
purposes of proving identity and California residency, (2)
procedures for verifying the authenticity of the documents, (3)
issuance of a temporary license pending verification of any
document’s authenticity, and (4) hearings to appeal a denial of a
license or temporary license.

(c) Emergency regulations adopted for purposes of establishing
the documents acceptable to prove identity and residency pursuant
to subdivision (b) shall be promulgated by the department in
consultation with appropriate interested parties, in accordance with
the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code), including law enforcement representatives, immigrant rights
representatives, labor representatives, and other stakeholders,
which may include, but are not limited to, the begin insert Department of the end insert
California Highway Patrol, the California State Sheriffs’
Association, and the California Police Chiefs Association. The
department shall accept various types of documentation for this
purpose, including, but not limited to, the following documents:

(1) A valid, unexpired consular identification document issued
by a consulate from the applicant’s country of citizenship, or a
valid, unexpired passport from the applicant’s country of
citizenship.

(2) An original birth certificate, or other proof of age, as
designated by the department.

(3) A home utility bill, lease or rental agreement, or other proof
of California residence, as designated by the department.

(4) The following documents, which, if in a language other than
English, shall be accompanied by a certified translation or an
affidavit of translation into English:

(A) A marriage license or divorce certificate.

(B) A foreign federal electoral photo card issued on or after
January 1, 1991.

(C) A foreign driver’s license.

(5) A United States Department of Homeland Security Form
I-589, Application for Asylum and for Withholding of Removal.

(6) An official school or college transcript that includes the
applicant’s date of birth, or a foreign school record that is sealed
and includes a photograph of the applicant at the age the record
was issued.

(7) A United States Department of Homeland Security Form
I-20 or Form DS-2019.

(8) A deed or title to real property.

(9) A property tax bill or statement issued within the previous
12 months.

(10) An income tax return.

(d) (1) A license issued pursuant to this section, including a
temporary license issued pursuant to Section 12506, shall include
a recognizable feature on the front of the card, such as the letters
“DP” instead of, and in the same font size as, the letters “DL,”
with no other distinguishable feature.

(2) The license shall bear the following notice: “This card is
not acceptable for official federal purposes. This license is issued
only as a license to drive a motor vehicle. It does not establish
eligibility for employment, voter registration, or public benefits.”

(3) The notice described in paragraph (2) shall be in lieu of the
notice provided in Section 12800.5.

(e) If the United States Department of Homeland Security
determines a license issued pursuant to this section does not satisfy
the requirements of Section 37.71 of Title 6 of the Code of Federal
Regulations, adopted pursuant to paragraph (11) of subdivision
(d) of Section 202 of the Real ID Act of 2005 (Public Law 109-13),
the department shall modify the license only to the extent necessary
to satisfy the requirements of that section.

(f) Notwithstanding Section 40300 or any other law, a peace
officer shall not detain or arrest a person solely on the belief that
the person is an unlicensed driver, unless the officer has reasonable
cause to believe the person driving is under 16 years of age.

(g) The inability to obtain a driver’s license pursuant to this
section does not abrogate or diminish in any respect the legal
requirement of every driver in this state to obey the motor vehicle
laws of this state, including laws with respect to licensing, motor
vehicle registration, and financial responsibility.

(h) It shall be a violation of law, including, but not limited to,
a violation of the Unruh Civil Rights Act (Section 51 of the Civil
Code), to discriminate against an individual because he or she
holds or presents a license issued under this section.

(i) Information collected pursuant to this section is not a public
record and shall not be disclosed by the department, except as
required by law.

(j) A license issued pursuant to this section shall not be used to
consider an individual’s citizenship or immigration status as a
basis for a criminal investigation, arrest, or detention.

(k) On or before January 1, 2018, the California Research
Bureau shall compile and submit to the Legislature and the
Governor a report of any violations of subdivisions (h) and (j).
Information pertaining to any specific individual shall not be
provided in the report.

(l) In addition to the fees required by Section 14900, a person
applying for an original license pursuant to this section may be
required to pay an additional fee determined by the department
that is sufficient to offset the reasonable administrative costs of
implementing the provisions of the act that added this section. If
this additional fee is assessed, it shall only apply until June 30,
2017.

(m) This section shall become operative on January 1, 2015, or
on the date that the director executes a declaration pursuant to
Section 12801.11, whichever is sooner.

(n) This section shall become inoperative on the effective date
of a final judicial determination made by any court of appellate
jurisdiction that any provision of the act that added this section,
or its application, either in whole or in part, is enjoined, found
unconstitutional, or held invalid for any reason. The department
shall post this information on its Internet Web site.

SEC. 173.  

Section 14601.2 of the Vehicle Code is amended to
read:

14601.2.  

(a) A person shall not drive a motor vehicle at any
time when that person’s driving privilege is suspended or revoked
for a conviction of a violation of Section 23152 or 23153 if the
person so driving has knowledge of the suspension or revocation.

(b) Except in full compliance with the restriction, a person shall
not drive a motor vehicle at any time when that person’s driving
privilege is restricted if the person so driving has knowledge of
the restriction.

(c) Knowledge of the suspension or revocation of the driving
privilege shall be conclusively presumed if mailed notice has been
given by the department to the person pursuant to Section 13106.
Knowledge of the restriction of the driving privilege shall be
presumed if notice has been given by the court to the person. The
presumption established by this subdivision is a presumption
affecting the burden of proof.

(d) A person convicted of a violation of this section shall be
punished as follows:

(1) Upon a first conviction, by imprisonment in the county jail
for not less than 10 days or more than six months and by a fine of
not less than three hundred dollars ($300) or more than one
thousand dollars ($1,000), unless the person has been designated
a habitual traffic offender under subdivision (b) of Section 23546,
subdivision (b) of Section 23550, or subdivision (d) of Section
23550.5, in which case the person, in addition, shall be sentenced
as provided in paragraph (3) of subdivision (e) of Section 14601.3.

(2) If the offense occurred within five years of a prior offense
that resulted in a conviction of a violation of this section or Section
14601, 14601.1, or 14601.5, by imprisonment in the county jail
for not less than 30 days or more than one year and by a fine of
not less than five hundred dollars ($500) or more than two thousand
dollars ($2,000), unless the person has been designated a habitual
traffic offender under subdivision (b) of Section 23546, subdivision
(b) of Section 23550, or subdivision (d) of Section 23550.5, in
which case the person, in addition, shall be sentenced as provided
in paragraph (3) of subdivision (e) of Section 14601.3.

(e) If a person is convicted of a first offense under this section
and is granted probation, the court shall impose as a condition of
probation that the person be confined in the county jail for at least
10 days.

(f) If the offense occurred within five years of a prior offense
that resulted in a conviction of a violation of this section or Section
14601, 14601.1, or 14601.5 and is granted probation, the court
shall impose as a condition of probation that the person be confined
in the county jail for at least 30 days.

(g) If a person is convicted of a second or subsequent offense
that results in a conviction of this section within seven years, but
over five years, of a prior offense that resulted in a conviction of
a violation of this section or Section 14601, 14601.1, or 14601.5
and is granted probation, the court shall impose as a condition of
probation that the person be confined in the county jail for at least
10 days.

(h) Pursuant to Section 23575, the court shall require a person
convicted of a violation of this section to install a certified ignition
interlock device on a vehicle the person owns or operates. Upon
receipt of the abstract of a conviction under this section, the
department shall not reinstate the privilege to operate a motor
vehicle until the department receives proof of either the
“Verification of Installation” form as described in paragraph (2)
of subdivision begin delete (g) end delete begin insert (h) end insert of Section 13386 or the Judicial Council
Form I.D. 100.

(i) This section does not prohibit a person who is participating
in, or has completed, an alcohol or drug rehabilitation program
from driving a motor vehicle that is owned or utilized by the
person’s employer, during the course of employment on private
property that is owned or utilized by the employer, except an
offstreet parking facility begin insert , end insert as defined in subdivision (c) of Section
12500.

(j) This section also applies to the operation of an off-highway
motor vehicle on those lands that the Chappie-Z’berg Off-Highway
Motor Vehicle Law of 1971 (Division 16.5 (commencing with
Section 38000)) applies as to off-highway motor vehicles, as
described in Section 38001.

(k) If Section 23573 is applicable, then subdivision (h) is not
applicable.

SEC. 174.  

Section 15210 of the Vehicle Code is amended to
read:

15210.  

Notwithstanding any other provision of this code, as
used in this chapter, the following terms have the following
meanings:

(a) “Commercial driver’s license” means a driver’s license
issued by a state or other jurisdiction, in accordance with the
standards contained in Part 383 of Title 49 of the Code of Federal
Regulations, which authorizes the licenseholder to operate a class
or type of commercial motor vehicle.

(b) (1) “Commercial motor vehicle” means any vehicle or
combination of vehicles that requires a class A or class B license,
or a class C license with an endorsement issued pursuant to
paragraph (2), (3), (4), or (5) of subdivision (a) of Section 15278.

(2) “Commercial motor vehicle” does not include any of the
following:

(A) A recreational vehicle, as defined in Section 18010 of the
Health and Safety Code.

(B) An implement of husbandry operated by a person who is
not required to obtain a driver’s license under this code.

(C) Vehicles operated by persons exempted pursuant to Section
25163 of the Health and Safety Code or a vehicle operated in an
emergency situation at the direction of a peace officer pursuant to
Section 2800.

(c) “Controlled substance” has the same meaning as defined by
the federal Controlled Substances Act (21 U.S.C. Sec. 802).

(d) “Conviction” means an unvacated adjudication of guilt, or
a determination that a person has violated or failed to comply with
the law in a court of original jurisdiction or by an authorized
administrative tribunal, an unvacated forfeiture of bail or collateral
deposited to secure the person’s appearance in court, a plea of
guilty or nolo contendere accepted by the court, the payment of a
fine or court costs, or violation of a condition of release without
bail, regardless of whether or not the penalty is rebated, suspended,
or probated.

(e) “Disqualification” means a prohibition against driving a
commercial motor vehicle.

(f) “Driving a commercial vehicle under the influence” means
committing any one or more of the following unlawful acts in a
commercial motor vehicle:

(1) Driving a commercial motor vehicle while the operator’s
blood-alcohol concentration level is 0.04 percent or more, by
weight in violation of subdivision (d) of Section 23152.

(2) Driving under the influence of alcohol, as prescribed in
subdivision (a) or (b) of Section 23152.

(3) Refusal to undergo testing as required under this code in the
enforcement of Subpart D of Part 383 or Subpart A of Part 392 of
Title 49 of the Code of Federal Regulations.

(g) “Employer” means any person, including the United States,
a state, or political subdivision of a state, who owns or leases a
commercial motor vehicle or assigns drivers to operate that vehicle.
A person who employs himself or herself as a commercial vehicle
driver is considered to be both an employer and a driver for
purposes of this chapter.

(h) “Fatality” means the death of a person as a result of a motor
vehicle accident.

(i) “Felony” means an offense under state or federal law that is
punishable by death or imprisonment for a term exceeding one
year.

(j) “Gross combination weight rating” means the value specified
by the manufacturer as the maximum loaded weight of a
combination or articulated vehicle. In the absence of a value
specified by the manufacturer, gross vehicle weight rating begin delete will end delete
begin insert shall end insert be determined by adding the gross vehicle weight rating of
the power unit and the total weight of the towed units and any load
thereon.

(k) “Gross vehicle weight rating” means the value specified by
the manufacturer as the maximum loaded weight of a single
vehicle, as defined in Section begin delete 390. end delete begin insert 350. end insert

(l) “Imminent hazard” means the existence of a condition that
presents a substantial likelihood that death, serious illness, severe
personal injury, or substantial endangerment to health, property,
or the environment may occur before the begin delete reasonable end delete begin insert reasonably end insert
foreseeable completion date of a formal proceeding begin insert has end insert begun to
lessen the risk of death, illness, injury, or endangerment.

(m) “Noncommercial motor vehicle” means a motor vehicle or
combination of motor vehicles that is not included within the
definition in subdivision (b).

(n) “Nonresident commercial driver’s license” means a
commercial driver’s license issued to an individual by a state under
one of the following provisions:

(1) The individual is domiciled in a foreign country.

(2) The individual is domiciled in another state.

(o) “Schoolbus” is a commercial motor vehicle, as defined in
Section 545.

(p) “Serious traffic violation” includes any of the following:

(1) Excessive speeding, as defined pursuant to the federal
Commercial Motor Vehicle Safety Act (P.L. 99-570) involving
any single offense for any speed of 15 miles an hour or more above
the posted speed limit.

(2) Reckless driving, as defined pursuant to the federal
Commercial Motor Vehicle Safety Act (P.L. 99-570), and driving
in the manner described under Section 2800.1, 2800.2, or 2800.3,
including, but not limited to, the offense of driving a commercial
motor vehicle in willful or wanton disregard for the safety of
persons or property.

(3) A violation of a state or local law involving the safe
operation of a motor vehicle, arising in connection with a fatal
traffic accident.

(4) A similar violation of a state or local law involving the safe
operation of a motor vehicle, as defined pursuant to the
Commercial Motor Vehicle Safety Act (Title XII of P.L. 99-570).

(5) Driving a commercial motor vehicle without a commercial
driver’s license.

(6) Driving a commercial motor vehicle without the driver
having in his or her possession a commercial driver’s license,
unless the driver provides proof at the subsequent court appearance
that he or she held a valid commercial driver’s license on the date
of the violation.

(7) Driving a commercial motor vehicle when the driver has
not met the minimum testing standards for that vehicle as to the
class or type of cargo the vehicle is carrying.

(8) Driving a commercial motor vehicle while using an
electronic wireless communication device to write, send, or read
a text-based communication, as defined in Section 23123.5.

In the absence of a federal definition, existing definitions under
this code shall apply.

(q) “State” means a state of the United States or the District of
Columbia.

(r) “Tank vehicle” means a commercial motor vehicle that is
designed to transport any liquid or gaseous material within a tank
or tanks having an individual rated capacity of more than 119
gallons and an aggregate rated capacity of at least 1,000 gallons
that is permanently or temporarily attached to the vehicle or the
chassis, including, but not limited to, cargo tanks and portable
tanks, as defined in Part 171 of Title 49 of the Code of Federal
Regulations. A commercial motor vehicle transporting an empty
storage container tank not designed for transportation, with a rated
capacity of at least 1,000 gallons that is temporarily attached to a
flatbed trailer, is not a tank vehicle.

SEC. 175.  

Section 15215 of the Vehicle Code is amended to
read:

15215.  

(a) The department shall report each conviction of a
person who holds a commercial driver’s begin delete licence end delete begin insert license end insert from
another state occurring within this state to the licensing authority
of the home state of the begin delete licencee. end delete begin insert licensee. end insert This report shall clearly
identify the person convicted; violation date; describe the violation
specifying the section of the statute, code, or ordinance violated;
identify the court in which action was taken; indicate whether a
plea of guilty or not guilty was entered, or the conviction was a
result of the forfeiture of bail, bond, or other security; and include
special findings made in connection with the conviction.

(b) For begin delete the end delete purposes of subdivision (a), “conviction” has the
same meaning as defined in subdivision (d) of Section 15210.

SEC. 176.  

Section 21251 of the Vehicle Code is amended to
read:

21251.  

Except as provided in Chapter 6.2 (commencing with
Section 1962), begin delete Chapter 7 (commencing with Section 1963), end delete Chapter
7.1 (commencing with Section 1964), Chapter 8 (commencing
with Section 1965), and Chapter 8.1 (commencing with Section
1966) of Division 2.5 of the Streets and Highways Code, and
Sections 4023, 21115, and 21115.1, a low-speed vehicle is subject
to all the provisions applicable to a motor vehicle, and the driver
of a low-speed vehicle is subject to all the provisions applicable
to the driver of a motor vehicle or other vehicle, when applicable,
by this code or another code, with the exception of those provisions
that, by their very nature, can have no application.

SEC. 177.  

Section 21260 of the Vehicle Code is amended to
read:

21260.  

(a) Except as provided in paragraph (1) of subdivision
(b), or in an area where a neighborhood electric vehicle
transportation plan has been adopted pursuant to Chapter 6.2
(commencing with Section 1962), begin delete Chapter 7 (commencing with
Section 1963), end delete Chapter 7.1 (commencing with Section 1964),
Chapter 8 (commencing with Section 1965), or Chapter 8.1
(commencing with Section 1966) of Division 2.5 of the Streets
and Highways Code, the operator of a low-speed vehicle shall not
operate the vehicle on any roadway with a speed limit in excess
of 35 miles per hour.

(b) (1) The operator of a low-speed vehicle may cross a roadway
with a speed limit in excess of 35 miles per hour if the crossing
begins and ends on a roadway with a speed limit of 35 miles per
hour or less and occurs at an intersection of approximately 90
degrees.

(2) Notwithstanding paragraph (1), the operator of a low-speed
vehicle shall not traverse an uncontrolled intersection with any
state highway unless that intersection has been approved and
authorized by the agency having primary traffic enforcement
responsibilities for that crossing by a low-speed vehicle.

SEC. 178.  

Section 27375 of the Vehicle Code is amended to
read:

27375.  

(a) Any person who operates a limousine, as defined
in subdivision (i) of Section 5371.4 of the Public Utilities Code,
in any city, county, or city and county, that has been modified or
extended for purposes of increasing vehicle length in an amount
sufficient to accommodate additional passengers shall ensure that
the vehicle has at least two rear side doors and one or two rear
windows, as specified in paragraph (1), that the rear seat passengers
or all passengers of the vehicle may open from the inside of the
vehicle in case of any fire or other emergency that may require the
immediate exit of the passengers of the vehicle. A limousine
subject to this section shall be equipped with both of the following:

(1) (A) Except as provided in subparagraph (B), at least two
rear push-out windows that are accessible to all passengers. At
least one push-out window shall be located on each side of the
vehicle, unless the design of the limousine precludes the installation
of a push-out window on one side of the vehicle, in which case
the second push-out window shall instead be located in the roof
of the vehicle.

(B) If the design of the limousine precludes the installation of
even one push-out window on a side of the vehicle, one push-out
window shall instead be located in the roof of the vehicle.

(C) The Department of the California Highway Patrol shall
establish, by regulation, standards to ensure that window exits are
operable and sufficient in emergency situations for limousine
passengers. The department shall ensure that these regulations
comply with any applicable federal motor vehicle safety standards.

(2) At least two rear side doors that are accessible to all
passengers and that may be opened manually by any passenger.
At least one rear side door shall be located on each side of the
vehicle. For vehicles modified or extended for purposes of
increasing vehicle length in an amount sufficient to accommodate
additional passengers on or after July 1, 2015, at least one of these
side doors shall be located near the driver’s compartment and
another near the back of the vehicle. These side doors shall comply
with any applicable federal motor vehicle safety standards as
deemed necessary by the Department of the California Highway
Patrol.

(b) In the case of begin delete any end delete begin insert a end insert fire or other emergency that requires
the immediate exit of the passengers from the limousine, the driver
of the limousine shall unlock the doors so that the rear side doors
can be opened by the passengers from the inside of the vehicle.

(c) An owner or operator of a limousine shall do all of the
following:

(1) Instruct all passengers on the safety features of the vehicle
prior to the beginning of any trip, including, but not limited to,
instructions for lowering the partition between the driver and
passenger compartments and for communicating with the driver
by the use of an intercom or other onboard or wireless device.

(2) Disclose to the contracting party and the passengers whether
the limousine meets the safety requirements described in this
section.

(3) If paragraph (3) of subdivision (d) applies, the owner or
operator of a limousine shall further disclose to the contracting
party and the passengers that the limousine does not meet the safety
requirements required in subdivision (a) regarding vehicle escape
options because of its exempt status, and therefore may pose a
greater risk to passengers should emergency escape be necessary.

(d) (1) Subdivision (a) shall apply to all limousines modified
or extended for purposes of increasing vehicle length in an amount
sufficient to accommodate additional passengers on or after July
1, 2015.

(2) Subdivision (a) shall, beginning January 1, 2016, apply to
all limousines that were modified or extended for purposes of
increasing vehicle length in an amount sufficient to accommodate
additional passengers prior to July 1, 2015.

(3) Except as provided in paragraph (4), subdivision (a) shall
not apply to any limousine manufactured begin delete prior to end delete begin insert before end insert 1970 begin delete and end delete
that has an active transportation charter-party carrier (TCP) number
as of August 15, 2013.

(4) Subdivision (a) shall apply to any limousine manufactured
begin delete prior to end delete begin insert before end insert 1970 if it is modified or extended for the purpose
of increasing vehicle length in an amount sufficient to
accommodate additional passengers after August 15, 2013.

SEC. 179.  

The heading of Article 5 (commencing with Section
21250) of Chapter 1 of Division 11 of the Vehicle Code, as added
by Section 6 of Chapter 140 of the Statutes of 1999, is amended
and renumbered to read:

 

Article begin delete 5. end delete begin insert 5.5. end insert   Operation of Low-Speed Vehicles

 

SEC. 180.  

Section 304.7 of the Welfare and Institutions Code
is amended to read:

304.7.  

(a) The Judicial Council shall develop and implement
standards for the education and training of all judges who conduct
hearings pursuant to Section 300. The training shall include, but
not be limited to, both of the following:

(1) A component relating to Section 300 proceedings for newly
appointed or elected judges and an annual training session in
Section 300 proceedings.

(2) Cultural competency and sensitivity relating to, and best
practices for, providing adequate care to lesbian, gay, bisexual,
and transgender youth.

(b)  begin delete Any end delete begin insert A end insert commissioner or referee who is assigned to conduct
hearings held pursuant to Section 300 shall meet the minimum
standards for education and training established pursuant to
subdivision (a), by July 31, 1998.

(c) The Judicial Council shall submit an annual report to the
Legislature on compliance by judges, commissioners begin insert , end insert and referees
with the education and training standards described in subdivisions
(a) and (b).

SEC. 181.  

Section 355 of the Welfare and Institutions Code is
amended to read:

355.  

(a) At the jurisdictional hearing, the court shall first
consider only the question whether the minor is a person described
by Section 300. Any legally admissible evidence that is relevant
to the circumstances or acts that are alleged to bring the minor
within the jurisdiction of the juvenile court is admissible and may
be received in evidence. Proof by a preponderance of evidence
must be adduced to support a finding that the minor is a person
described by Section 300. Objections that could have been made
to evidence introduced shall be deemed to have been made by begin delete any end delete
begin insert a end insert parent or guardian who is present at the hearing and
unrepresented by counsel, unless the court finds that the parent or
guardian has made a knowing and intelligent waiver of the right
to counsel. Objections that could have been made to evidence
introduced shall be deemed to have been made by begin delete any end delete begin insert an end insert
unrepresented child.

(b) A social study prepared by the petitioning agency, and
hearsay evidence contained in it, is admissible and constitutes
competent evidence upon which a finding of jurisdiction pursuant
to Section 300 may be based, to the extent allowed by subdivisions
(c) and (d).

(1) For begin delete the end delete purposes of this section, “social study” means any
written report furnished to the juvenile court and to all parties or
their counsel by the county probation or welfare department in any
matter involving the custody, status, or welfare of a minor in a
dependency proceeding pursuant to Article 6 (commencing with
Section 300) to Article 12 (commencing with Section 385),
inclusive.

(2) The preparer of the social study shall be made available for
cross-examination upon a timely request by begin delete any end delete begin insert a end insert party. The court
may deem the preparer available for cross-examination if it
determines that the preparer is on telephone standby and can be
present in court within a reasonable time of the request.

(3) The court may grant a reasonable continuance not to exceed
10 days upon request by any party if the social study is not
provided to the parties or their counsel within a reasonable time
before the hearing.

(c) (1) If begin delete any end delete begin insert a end insert party to the jurisdictional hearing raises a timely
objection to the admission of specific hearsay evidence contained
in a social study, the specific hearsay evidence shall not be
sufficient by itself to support a jurisdictional finding or any ultimate
fact upon which a jurisdictional finding is based, unless the
petitioner establishes one or more of the following exceptions:

(A) The hearsay evidence would be admissible in any civil or
criminal proceeding under any statutory or decisional exception
to the prohibition against hearsay.

(B) The hearsay declarant is a minor under 12 years of age who
is the subject of the jurisdictional hearing. However, the hearsay
statement of a minor under 12 years of age shall not be admissible
if the objecting party establishes that the statement is unreliable
because it was the product of fraud, deceit, or undue influence.

(C) The hearsay declarant is a peace officer as defined by
Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2
of the Penal Code, a health practitioner described in paragraphs
begin delete (22) to (29), end delete begin insert (21) to (28), end insert inclusive, of subdivision (a) of Section
11165.7 of the Penal Code, a social worker licensed pursuant to
Chapter 14 (commencing with Section 4991) of Division 2 of the
Business and Professions Code, or a teacher who holds a credential
pursuant to Chapter 2 (commencing with Section 44200) of Part
25 of Division 3 of Title 2 of the Education Code. For the purpose
of this subdivision, evidence in a declaration is admissible only to
the extent that it would otherwise be admissible under this section
or if the declarant were present and testifying in court.

(D) The hearsay declarant is available for cross-examination.
For purposes of this section, the court may deem a witness available
for cross-examination if it determines that the witness is on
telephone standby and can be present in court within a reasonable
time of a request to examine the witness.

(2) For purposes of this subdivision, an objection is timely if it
identifies with reasonable specificity the disputed hearsay evidence
and it gives the petitioner a reasonable period of time to meet the
objection prior to a contested hearing.

(d) This section shall not be construed to limit the right of begin delete any end delete
begin insert a end insert party to the jurisdictional hearing to subpoena a witness whose
statement is contained in the social study or to introduce admissible
evidence relevant to the weight of the hearsay evidence or the
credibility of the hearsay declarant.

SEC. 182.  

Section 366.31 of the Welfare and Institutions Code
is amended to read:

366.31.  

(a) If a review hearing is the last review hearing to be
held before the minor attains 18 years of age, the court shall ensure
all of the following:

(1) The minor’s case plan includes a plan for the minor to satisfy
one or more of the participation conditions described in paragraphs
(1) to (5), inclusive, of subdivision (b) of Section 11403, so that
the minor is eligible to remain in foster care as a nonminor
dependent.

(2) The minor has been informed of his or her right to seek
termination of dependency jurisdiction pursuant to Section 391,
and understands the potential benefits of continued dependency.

(3) The minor is informed of his or her right to have dependency
reinstated pursuant to subdivision (e) of Section 388, and
understands the potential benefits of continued dependency.

(b) At the review hearing that occurs in the six-month period
prior to the minor’s attaining 18 years of age, and at every
subsequent review hearing for the nonminor dependent, as
described in subdivision (v) of Section 11400, the report shall
describe all of the following:

(1) The minor’s and nonminor’s plans to remain in foster care
and plans to meet one or more of the participation conditions as
described in paragraphs (1) to (5), inclusive, of subdivision (b) of
Section 11403 to continue to receive AFDC-FC benefits as a
nonminor dependent.

(2) The efforts made and assistance provided to the minor and
nonminor by the social worker or the probation officer so that the
minor and nonminor will be able to meet the participation
conditions.

(3) Efforts toward completing the items described in paragraph
(2) of subdivision (e) of Section 391.

(c) The reviews conducted pursuant to this section for begin delete any end delete begin insert a end insert
nonminor dependent shall be conducted in a manner that respects
the nonminor’s status as a legal adult, focused on the goals and
services described in the youth’s transitional independent living
case plan, as described in subdivision (y) of Section 11400,
including efforts made to maintain connections with caring and
permanently committed adults, and attended, as appropriate, by
additional participants invited by the nonminor dependent.

(d) For a nonminor dependent whose case plan is continued
court-ordered family reunification services pursuant to Section
361.6, the court shall consider whether the nonminor dependent
may safely reside in the home of the parent or guardian. If the
nonminor cannot reside safely in the home of the parent or
begin delete guardian, or, end delete begin insert guardian or end insert if it is not in the nonminor dependent’s
best interest to reside in the home of the parent or guardian, the
court must consider whether to continue or terminate reunification
services for the parent or legal guardian.

(1) The review report shall include a discussion of all of the
following:

(A) Whether foster care placement continues to be necessary
and appropriate.

(B) The likely date by which the nonminor dependent may reside
safely in the home of the parent or guardian or will achieve
independence.

(C) Whether the parent or guardian and nonminor dependent
were actively involved in the development of the case plan.

(D) Whether the social worker or probation officer has provided
reasonable services designed to aid the parent or guardian to
overcome the problems that led to the initial removal of the
nonminor dependent.

(E) The extent of progress the parents or guardian have made
toward alleviating or mitigating the causes necessitating placement
in foster care.

(F) Whether the nonminor dependent and parent, parents, or
guardian are in agreement with the continuation of reunification
services.

(G) Whether continued reunification services are in the best
interest of the nonminor dependent.

(H) Whether there is a substantial probability that the nonminor
dependent will be able to safely reside in the home of the parent
or guardian by the next review hearing date.

(I) The efforts to maintain the nonminor’s connections with
caring and permanently committed adults.

(J) The agency’s compliance with the nonminor dependent’s
transitional independent living case plan, including efforts to
finalize the nonminor’s permanent plan and prepare the nonminor
dependent for independence.

(K) The progress in providing the information and documents
to the nonminor dependent as described in Section 391.

(2) The court shall inquire about the progress being made to
provide a permanent home for the nonminor, shall consider the
safety of the nonminor dependent, and shall determine all of the
following:

(A) The continuing necessity for, and appropriateness of, the
placement.

(B) Whether the agency has made reasonable efforts to maintain
relationships between the nonminor dependent and individuals
who are important to the nonminor dependent.

(C) The extent of the agency’s compliance with the case plan
in making reasonable begin delete efforts, end delete begin insert efforts end insert or, in the case of an Indian
child, active efforts begin insert , end insert as described in Section 361.7, to create a safe
home of the parent or guardian for the nonminor to reside in or to
complete whatever steps are necessary to finalize the permanent
placement of the nonminor dependent.

(D) The extent of the agency’s compliance with the nonminor
dependent’s transitional independent living case plan, including
efforts to finalize the youth’s permanent plan and prepare the
nonminor dependent for independence.

(E) The adequacy of services provided to the parent or guardian
and to the nonminor dependent. The court shall consider the
progress in providing the information and documents to the
nonminor dependent as described in Section 391. The court shall
also consider the need for, and progress in providing, the assistance
and services described in Section 391.

(F) The extent of progress the parents or legal guardians have
made toward alleviating or mitigating the causes necessitating
placement in foster care.

(G) The likely date by which the nonminor dependent may
safely reside in the home of the parent or guardian or, if the court
is terminating reunification services, the likely date by which it is
anticipated the nonminor dependent will achieve independence,
or, for an Indian child, in consultation with the child’s tribe, placed
for tribal customary adoption.

(H) Whether the agency has made reasonable efforts as required
in subparagraph (D) of paragraph (1) of subdivision (a) of Section
366 to establish or maintain the nonminor dependent’s relationship
with his or her siblings who are under the juvenile court’s
jurisdiction.

(I) The services needed to assist the nonminor dependent to
make the transition from foster care to independent living.

(J) Whether or not reasonable efforts to make and finalize a
permanent placement for the nonminor have been made.

(3) If the court determines that a nonminor dependent may safely
reside in the home of the parent or former guardian, the court may
order the nonminor dependent to return to the family home. After
the nonminor dependent returns to the family home, the court may
terminate jurisdiction and proceed under applicable provisions of
Section 391 or continue jurisdiction as a nonminor under
subdivision (a) of Section 303 and hold hearings as follows:

(A) At every hearing for a nonminor dependent residing in the
home of the parent or guardian, the court shall set a hearing within
six months of the previous hearing. The court shall advise the
parties of their right to be present. At least 10 calendar days begin delete prior
to end delete begin insert before end insert the hearing, the social worker or probation officer shall
file a report with the court describing the services offered to the
family and the progress made by the family in eliminating the
conditions or factors requiring court supervision. The report shall
address all of the following:

(i) Whether the parent or guardian and the nonminor dependent
were actively involved in the development of the case plan.

(ii) Whether the social worker or probation officer has provided
reasonable services to eliminate the need for court supervision.

(iii) The progress of providing information and documents to
the nonminor dependent as described in Section 391.

(B) The court shall inquire about progress being made, shall
consider the safety of the nonminor dependent, and shall determine
all of the following:

(i) The continuing need for court supervision.

(ii) The extent of the agency’s compliance with the case plan
in making reasonable efforts to maintain a safe family home for
the nonminor dependent.

(C) If the court finds that court supervision is no longer
necessary, the court shall terminate jurisdiction under applicable
provisions of Section 391.

(e) For a nonminor dependent who is no longer receiving
court-ordered family reunification services and is in a permanent
plan of planned permanent living arrangement, at the review
hearing held every six months pursuant to subdivision (d) of
Section 366.3, the reviewing body shall inquire about the progress
being made to provide permanent connections with caring,
committed adults for the nonminor dependent, shall consider the
safety of the nonminor, shall consider the begin delete Transitional Independent
Living Case Plan, end delete begin insert transitional independent living case plan, end insert and
shall determine all of the following:

(1) The continuing necessity for, and appropriateness of, the
placement.

(2) The continuing appropriateness and extent of compliance
with the permanent plan for the nonminor dependent, including
efforts to identify and maintain relationships with individuals who
are important to the nonminor dependent.

(3) The extent of the agency’s compliance with the nonminor
dependent’s transitional independent living case plan, including
whether or not reasonable efforts have been made to make and
finalize the youth’s permanent plan and prepare the nonminor
dependent for independence.

(4) Whether a prospective adoptive parent has been identified
and assessed as appropriate for the nonminor dependent’s adoption
under this section, whether the prospective adoptive parent has
been informed about the terms of the written negotiated adoption
assistance agreement pursuant to Section 16120, and whether
adoption should be ordered as the nonminor dependent’s permanent
plan. If nonminor dependent adoption is ordered as the nonminor
dependent’s permanent plan, a hearing pursuant to subdivision (f)
shall be held within 60 days. When the court orders a hearing
pursuant to subdivision (f), it shall direct the agency to prepare a
report that shall include the provisions of paragraph (5) of
subdivision (f).

(5) For the nonminor dependent who is an Indian child, whether,
in consultation with the nonminor’s tribe, the nonminor should be
placed for tribal customary adoption.

(6) The adequacy of services provided to the nonminor
dependent. The court shall consider the progress in providing the
information and documents to the nonminor dependent as described
in Section 391. The court shall also consider the need for, and
progress in providing, the assistance and services described in
Section 391.

(7) The likely date by which it is anticipated the nonminor
dependent will achieve adoption or independence.

(8) Whether the agency has made reasonable efforts as required
in subparagraph (D) of paragraph (1) of subdivision (a) of Section
366 to establish or maintain the nonminor dependent’s relationship
with his or her siblings who are under the juvenile court’s
jurisdiction.

(9) The services needed to assist the nonminor dependent to
make the transition from foster care to independent living.

(f) (1) At a hearing to consider a permanent plan of adoption
for a nonminor dependent, the court shall read and consider the
report in paragraph (5) and receive other evidence that the parties
may present. A copy of the executed negotiated agreement shall
be attached to the report. If the court finds pursuant to this section
that nonminor dependent adoption is the appropriate permanent
plan, it shall make findings and orders to do the following:

(A) Approve the adoption agreement and declare the nonminor
dependent is the adopted child of the adoptive parent, and that the
nonminor dependent and adoptive parents agree to assume toward
each other the legal relationship of parents and child and to have
all of the rights and be subject to all of the duties and
responsibilities of that relationship.

(B) Declare that the birth parents of the nonminor dependent
are, from the time of the adoption, relieved of all parental duties
toward, and responsibility for, the adopted nonminor dependent
and have no rights over the adopted nonminor dependent.

(2) If the court finds that the nonminor dependent and the
prospective adoptive parent have mutually consented to the
adoption, the court may enter the adoption order after it determines
all of the following:

(A) Whether the notice was given as required by law.

(B) Whether the nonminor dependent and prospective adoptive
parent are present for the hearing.

(C) Whether the court has read and considered the assessment
prepared by the social worker or probation officer.

(D) Whether the court considered the wishes of the nonminor
dependent.

(E) If the nonminor dependent is eligible, the prospective
adoptive parent has signed the negotiated adoption assistance
agreement pursuant to subdivision (g) of Section 16120, and
whether a copy of the executed negotiated agreement is attached
to the report.

(F) Whether the adoption is in the best interest of the nonminor
dependent.

(3) If the court orders the establishment of the nonminor
dependent adoption, it shall dismiss dependency or transitional
jurisdiction.

(4) If the court does not order the establishment of the nonminor
dependent adoption, the nonminor dependent shall remain in a
planned permanent living arrangement subject to periodic review
of the juvenile court pursuant to this section.

(5) At least 10 calendar days before the hearing, the social
worker or probation officer shall file a report with the court and
provide a copy of the report to all parties. The report shall describe
the following:

(A) Whether or not the nonminor dependent has any
developmental disability and whether the proposed adoptive parent
is suitable to meet the needs of the nonminor dependent.

(B) The length and nature of the relationship between the
prospective adoptive parent and the nonminor dependent, including
whether the prospective adoptive parent has been determined to
have been established as the nonminor’s permanent connection.

(C) Whether the nonminor dependent has been determined to
be eligible for the adoption assistance begin delete program, end delete begin insert program end insert and begin insert , end insert if
so, whether the prospective adoptive parent has signed the
negotiated adoption assistance agreement pursuant to subdivision
(g) of Section 16120.

(D) Whether a copy of the executed negotiated agreement is
attached to the report.

(E) Whether criminal background clearances were completed
for the prospective adoptive parent as required by Section
begin delete 671(a)(2)(A) and (c) end delete begin insert 671(a)(20)(A) and (a)(20)(C) end insert of Title 42 of
the United States Code.

(F) Whether the prospective adoptive parent who is married and
not legally separated from that spouse has the consent of the
spouse, provided that the spouse is capable of giving that consent.

(G) Whether the adoption of the nonminor dependent is in the
best interests of the nonminor dependent and the prospective
adoptive parent.

(H) Whether the nonminor dependent and the prospective
adoptive parent have mutually consented to the adoption.

(6) The social worker or probation officer shall serve written
notice of the hearing in the manner and to the persons set forth in
Section 295, including the prospective adoptive parent or parents,
except that notice to the nonminor’s birth parents is not required.

(7) Nothing in this section shall prevent a nonminor dependent
from filing an adoption petition pursuant to Section 9300 of the
Family Code.

(g) Each licensed foster family agency shall submit reports for
each nonminor dependent in its care to the court concerning the
continuing appropriateness and extent of compliance with the
nonminor dependent’s permanent plan, the extent of compliance
with the transitional independent living case plan, and the type
and adequacy of services provided to the nonminor dependent.
The report shall document that the nonminor has received all the
information and documentation described in paragraph (2) of
subdivision (e) of Section 391. If the court is considering
terminating dependency jurisdiction for a nonminor dependent it
shall first hold a hearing pursuant to Section 391.

SEC. 183.  

Section 726 of the Welfare and Institutions Code is
amended to read:

726.  

(a) In all cases in which a minor is adjudged a ward or
dependent child of the court, the court may limit the control to be
exercised over the ward or dependent child by any parent or
guardian and shall begin insert , end insert in its order, clearly and specifically set forth
all those limitations, but no ward or dependent child shall be taken
from the physical custody of a parent or guardian, unless upon the
hearing the court finds one of the following facts:

(1) That the parent or guardian is incapable of providing or has
failed or neglected to provide proper maintenance, training, and
education for the minor.

(2) That the minor has been tried on probation while in custody
and has failed to reform.

(3) That the welfare of the minor requires that custody be taken
from the minor’s parent or guardian.

(b) Whenever the court specifically limits the right of the parent
or guardian to make educational or developmental services
decisions for the minor, the court shall at the same time appoint a
responsible adult to make educational or developmental services
decisions for the child until one of the following occurs:

(1) The minor reaches 18 years of age, unless the child chooses
not to make educational or developmental services decisions for
himself or herself, or is deemed by the court to be incompetent.

(2) Another responsible adult is appointed to make educational
or developmental services decisions for the minor pursuant to this
section.

(3) The right of the parent or guardian to make educational or
developmental services decisions for the minor is fully restored.

(4) A successor guardian or conservator is appointed.

(5) The child is placed into a planned permanent living
arrangement pursuant to paragraph (5) or (6) of subdivision (b) of
Section 727.3, at which time, for educational decisionmaking, the
foster parent, relative caretaker, or nonrelative extended family
member begin insert , end insert as defined in Section 362.7 begin insert , end insert has the right to represent the
child in educational matters pursuant to Section 56055 of the
Education Code, and for decisions relating to developmental
services, unless the court specifies otherwise, the foster parent,
relative caregiver, or nonrelative extended family member of the
planned permanent living arrangement has the right to represent
the child in matters related to developmental services.

(c) An individual who would have a conflict of interest in
representing the child, as specified under federal regulations, may
not be appointed to make educational decisions. The limitations
applicable to conflicts of interest for educational rights holders
shall also apply to authorized representatives for developmental
services decisions pursuant to subdivision (b) of Section 4701.6.
For purposes of this section, “an individual who would have a
conflict of begin delete interest,” end delete begin insert interest” end insert means a person having any interests
that might restrict or bias his or her ability to make educational or
developmental services decisions, including, but not limited to,
those conflicts of interest prohibited by Section 1126 of the
Government Code, and the receipt of compensation or attorneys’
fees for the provision of services pursuant to this section. A foster
parent may not be deemed to have a conflict of interest solely
because he or she receives compensation for the provision of
services pursuant to this section.

(1) If the court limits the parent’s educational rights pursuant
to subdivision (a), the court shall determine whether there is a
responsible adult who is a relative, nonrelative extended family
member, or other adult known to the child and who is available
and willing to serve as the child’s educational representative before
appointing an educational representative or surrogate who is not
known to the child.

If the court cannot identify a responsible adult who is known to
the child and available to make educational decisions for the child
and paragraphs (1) to (5), inclusive, of subdivision (b) do not apply,
and the child has either been referred to the local educational
agency for special education and related begin delete services, end delete begin insert services end insert or has
a valid individualized education program, the court shall refer the
child to the local educational agency for appointment of a surrogate
parent pursuant to Section 7579.5 of the Government Code.

(2) All educational and school placement decisions shall seek
to ensure that the child is in the least restrictive educational
programs and has access to the academic resources, services, and
extracurricular and enrichment activities that are available to all
pupils. In all instances, educational and school placement decisions
shall be based on the best interests of the child. If an educational
representative or surrogate is appointed for the child, the
representative or surrogate shall meet with the child, shall
investigate the child’s educational needs and whether those needs
are being met, and shall, begin delete prior to end delete begin insert before end insert each review hearing held
under Article 10 (commencing with Section 360), provide
information and recommendations concerning the child’s
educational needs to the child’s social worker, make written
recommendations to the court, or attend the hearing and participate
in those portions of the hearing that concern the child’s education.

(3) Nothing in this section in any way removes the obligation
to appoint surrogate parents for students with disabilities who are
without parental representation in special education procedures as
required by state and federal law, including Section 1415(b)(2) of
Title 20 of the United States Code, Section 56050 of the Education
Code, Section 7579.5 of the Government Code, and Rule 5.650
of the California Rules of Court.

If the court appoints a developmental services decisionmaker
pursuant to this section, he or she shall have the authority to access
the child’s information and records pursuant to subdivision (u) of
Section 4514 and subdivision (y) of Section 5328, and to act on
the child’s behalf for the purposes of the individual program plan
process pursuant to Sections 4646, 4646.5, and 4648 and the fair
hearing process pursuant to Chapter 7 (commencing with Section
4700) of Division 4.5, and as set forth in the court order.

(d)  begin insert (1) end insert begin insert   end insert If the minor is removed from the physical custody of
his or her parent or guardian as the result of an order of wardship
made pursuant to Section 602, the order shall specify that the minor
may not be held in physical confinement for a period in excess of
the maximum term of imprisonment which could be imposed upon
an adult convicted of the offense or offenses which brought or
continued the minor under the jurisdiction of the juvenile court.

begin delete

As

end delete

begin insert (2) end insert begin insert   end insert begin insert As end insert used in this section and in Section 731, “maximum term
of imprisonment” means the longest of the three time periods set
forth in paragraph begin delete (2) end delete begin insert (3) end insert of subdivision (a) of Section 1170 of the
Penal Code, but without the need to follow the provisions of
subdivision (b) of Section 1170 of the Penal Code or to consider
time for good behavior or participation pursuant to Sections 2930,
2931, and 2932 of the Penal Code, plus enhancements which must
be proven if pled.

begin delete

If

end delete

begin insert (3) end insert begin insert   end insert begin insert If end insert the court elects to aggregate the period of physical
confinement on multiple counts or multiple petitions, including
previously sustained petitions adjudging the minor a ward within
Section 602, the “maximum term of imprisonment” shall be the
aggregate term of imprisonment specified in subdivision (a) of
Section 1170.1 of the Penal Code, which includes any additional
term imposed pursuant to Section 667, 667.5, 667.6, or 12022.1
of the Penal Code, and Section 11370.2 of the Health and Safety
Code.

begin delete

If

end delete

begin insert (4) end insert begin insert   end insert begin insert If end insert the charged offense is a misdemeanor or a felony not
included within the scope of Section 1170 of the Penal Code, the
“maximum term of imprisonment” is the longest term of
imprisonment prescribed by law.

begin delete

“Physical

end delete

begin insert (5) end insert begin insert   end insert begin insert “Physical end insert confinement” means placement in a juvenile hall,
ranch, camp, forestry camp or secure juvenile home pursuant to
Section 730, or in any institution operated by the begin delete Youth Authority. end delete
begin insert Department of Corrections and Rehabilitation, Division of Juvenile
Justice. end insert

begin delete

This

end delete

begin insert (6) end insert begin insert   end insert begin insert This end insert section does not limit the power of the court to retain
jurisdiction over a minor and to make appropriate orders pursuant
to Section 727 for the period permitted by Section 607.

SEC. 184.  

Section 4363 of the Welfare and Institutions Code
is amended to read:

4363.  

The director shall administer this chapter and establish
standards and begin delete procedures, end delete begin insert procedures end insert as the director deems
necessary in carrying out the provisions of this chapter. The
standards and procedures are not required to be adopted as
regulations 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).

SEC. 185.  

Section 4512 of the Welfare and Institutions Code
is amended to read:

4512.  

As used in this division:

(a) “Developmental disability” means a disability that originates
before an individual attains 18 years of begin delete age; end delete begin insert age, end insert continues, or can
be expected to continue, begin delete indefinitely; end delete begin insert indefinitely, end insert and constitutes
a substantial disability for that individual. As defined by the
Director of Developmental Services, in consultation with the
Superintendent of Public Instruction, this term shall include
intellectual disability, cerebral palsy, epilepsy, and autism. This
term shall also include disabling conditions found to be closely
related to intellectual disability or to require treatment similar to
that required for individuals with an intellectual disability, but
shall not include other handicapping conditions that are solely
physical in nature.

(b) “Services and supports for persons with developmental
disabilities” means specialized services and supports or special
adaptations of generic services and supports directed toward the
alleviation of a developmental disability or toward the social,
personal, physical, or economic habilitation or rehabilitation of an
individual with a developmental disability, or toward the
achievement and maintenance of independent, productive, and
normal lives. The determination of which services and supports
are necessary for each consumer shall be made through the
individual program plan process. The determination shall be made
on the basis of the needs and preferences of the consumer or, when
appropriate, the consumer’s family, and shall include consideration
of a range of service options proposed by individual program plan
participants, the effectiveness of each option in meeting the goals
stated in the individual program plan, and the cost-effectiveness
of each option. Services and supports listed in the individual
program plan may include, but are not limited to, diagnosis,
evaluation, treatment, personal care, day care, domiciliary care,
special living arrangements, physical, occupational, and speech
therapy, training, education, supported and sheltered employment,
mental health services, recreation, counseling of the individual
with a developmental disability and of his or her family, protective
and other social and sociolegal services, information and referral
services, follow-along services, adaptive equipment and supplies,
advocacy assistance, including self-advocacy training, facilitation
and peer advocates, assessment, assistance in locating a home,
child care, behavior training and behavior modification programs,
camping, community integration services, community support,
daily living skills training, emergency and crisis intervention,
facilitating circles of support, habilitation, homemaker services,
infant stimulation programs, paid roommates, paid neighbors,
respite, short-term out-of-home care, social skills training,
specialized medical and dental care, supported living arrangements,
technical and financial assistance, travel training, training for
parents of children with developmental disabilities, training for
parents with developmental disabilities, vouchers, and
transportation services necessary to ensure delivery of services to
persons with developmental disabilities. Nothing in this subdivision
is intended to expand or authorize a new or different service or
support for any consumer unless that service or support is contained
in his or her individual program plan.

(c) Notwithstanding subdivisions (a) and (b), for any
organization or agency receiving federal financial participation
under the federal Developmental Disabilities Assistance and Bill
of Rights Act of 2000, as amended, “developmental disability”
and “services for persons with developmental disabilities” mean
the terms as defined in the federal act to the extent required by
federal law.

(d) “Consumer” means a person who has a disability that meets
the definition of developmental disability set forth in subdivision
(a).

(e) “Natural supports” means personal associations and
relationships typically developed in the community that enhance
the quality and security of life for people, including, but not limited
to, family relationships, friendships reflecting the diversity of the
neighborhood and the community, associations with fellow students
or employees in regular classrooms and workplaces, and
associations developed through participation in clubs,
organizations, and other civic activities.

(f) “Circle of support” means a committed group of community
members, who may include family members, meeting regularly
with an individual with developmental disabilities in order to share
experiences, promote autonomy and community involvement, and
assist the individual in establishing and maintaining natural
supports. A circle of support generally includes a plurality of
members who neither provide nor receive services or supports for
persons with developmental disabilities and who do not receive
payment for participation in the circle of support.

(g) “Facilitation” means the use of modified or adapted
materials, special instructions, equipment, or personal assistance
by an individual, such as assistance with communications, that
will enable a consumer to understand and participate to the
maximum extent possible in the decisions and choices that begin delete effect end delete
begin insert affect end insert his or her life.

(h) “Family support services” means services and supports that
are provided to a child with developmental disabilities or his or
her family and that contribute to the ability of the family to reside
together.

(i) “Voucher” means any authorized alternative form of service
delivery in which the consumer or family member is provided with
a payment, coupon, chit, or other form of authorization that enables
the consumer or family member to choose his or her own service
provider.

(j) “Planning team” means the individual with developmental
disabilities, the parents or legally appointed guardian of a minor
consumer or the legally appointed conservator of an adult
consumer, the authorized representative, including those appointed
pursuant to subdivision (d) of Section 4548 and subdivision (e) of
Section 4705, one or more regional center representatives,
including the designated regional center service coordinator
pursuant to subdivision (b) of Section 4640.7, any individual,
including a service provider, invited by the consumer, the parents
or legally appointed guardian of a minor consumer or the legally
appointed conservator of an adult consumer, or the authorized
representative, including those appointed pursuant to subdivision
(d) of Section 4548 and subdivision (e) of Section 4705, and
including a minor’s, dependent’s, or ward’s court-appointed
developmental services decisionmaker appointed pursuant to
Section 319, 361, or 726.

(k) “Stakeholder organizations” means statewide organizations
representing the interests of consumers, family members, service
providers, and statewide advocacy organizations.

(l) “Substantial disability” means the existence of significant
functional limitations in three or more of the following areas of
major life activity, as determined by a regional center, and as
appropriate to the age of the person:

(1) Self-care.

(2) Receptive and expressive language.

(3) Learning.

(4) Mobility.

(5) Self-direction.

(6) Capacity for independent living.

(7) Economic self-sufficiency.

Any reassessment of substantial disability for purposes of
continuing eligibility shall utilize the same criteria under which
the individual was originally made eligible.

(m) “Native language” means the language normally used or
the preferred language identified by the individual and, when
appropriate, his or her parent, legal guardian or conservator, or
authorized representative.

SEC. 186.  

Section 4571 of the Welfare and Institutions Code
is amended to read:

4571.  

(a) It is the intent of the Legislature to ensure the
well-being of consumers, taking into account their informed and
expressed choices. It is further the intent of the Legislature to
support the satisfaction and success of consumers through the
delivery of quality services and supports. Evaluation of the services
that consumers receive is a key aspect to the service system.
Utilizing the information that consumers and their families provide
about those services in a reliable and meaningful way is also critical
to enable the department to assess the performance of the state’s
developmental services system and to improve services for
consumers in the future. To that end, the State Department of
Developmental Services, on or before January 1, 2010, shall
implement an improved, unified quality assessment system, in
accordance with this section.

(b) The department, in consultation with stakeholders, shall
identify a valid and reliable quality assurance instrument that
assesses consumer and family satisfaction, provision of services
in a linguistically and culturally competent manner, and personal
outcomes. The instrument shall do all of the following:

(1) Provide nationally validated, benchmarked, consistent,
reliable, and measurable data for the department’s Quality
Management System.

(2) Enable the department and regional centers to compare the
performance of California’s developmental services system against
other states’ developmental services systems and to assess quality
and performance among all of the regional centers.

(3) Include outcome-based measures such as health, safety,
well-being, relationships, interactions with people who do not have
a disability, employment, quality of life, integration, choice,
service, and consumer satisfaction.

(4) Include outcome-based measures to evaluate the linguistic
and cultural competency of regional center services that are
provided to consumers across their begin delete lifetime. end delete begin insert lifetimes. end insert

(c) To the extent that funding is available, the instrument
identified in subdivision (b) may be expanded to collect additional
data requested by the State Council on Developmental Disabilities.

(d) The department shall contract with an independent agency
or organization to implement by January 1, 2010, the quality
assurance instrument described in subdivision (b). The contractor
shall be experienced in all of the following:

(1) Designing valid quality assurance instruments for
developmental service systems.

(2) Tracking outcome-based measures such as health, safety,
well-being, relationships, interactions with people who do not have
a disability, employment, quality of life, integration, choice,
service, and consumer satisfaction.

(3) Developing data systems.

(4) Data analysis and report preparation.

(5) Assessments of the services received by consumers who are
moved from developmental centers to the community, given the
Legislature’s historic recognition of a special obligation to ensure
the well-being of these persons.

(6) Issues related to linguistic and cultural competency.

(e) The department, in consultation with the contractor described
in subdivision (d), shall establish the methodology by which the
quality assurance instrument shall be administered, including, but
not limited to, how often and to whom the quality assurance will
be administered, and the design of a stratified, random sample
among the entire population of consumers served by regional
centers. The contractor shall provide aggregate information for all
regional centers and the state as a whole. At the request of a
consumer or the family member of a consumer, the survey shall
be conducted in the primary language of the consumer or family
member surveyed.

(f) The department shall contract with the state council to collect
data for the quality assurance instrument described in subdivision
(b). If, during the data collection process, the state council identifies
any suspected violation of the legal, civil, or service rights of a
consumer, or if it determines that the health and welfare of a
consumer is at risk, that information shall be provided immediately
to the regional center providing case management services to the
consumer. At the request of the begin delete consumer, end delete begin insert consumer end insert or family,
when appropriate, a copy of the completed survey shall be provided
to the regional center providing case management services to
improve the consumer’s quality of services through the individual
planning process.

(g) The department, in consultation with stakeholders, shall
annually review the data collected from and the findings of the
quality assurance instrument described in subdivision (b) and
accept recommendations regarding additional or different criteria
for the quality assurance instrument in order to assess the
performance of the state’s developmental services system and
improve services for consumers.

(h) All reports generated pursuant to this section shall be made
publicly available, but shall not contain any personal identifying
information about any person assessed.

(i) All data collected pursuant to subdivision (c) shall be
provided to the state council, but shall contain no personal
identifying information about the persons being surveyed.

(j) Implementation of this section shall be subject to an annual
appropriation of funds in the Budget Act for this purpose.

SEC. 187.  

Section 4685.8 of the Welfare and Institutions Code
is amended to read:

4685.8.  

(a) The department shall implement a statewide
Self-Determination Program. The Self-Determination Program
shall be available in every regional center catchment area to provide
participants and their families, within an individual budget,
increased flexibility and choice, and greater control over decisions,
resources, and needed and desired services and supports to
implement their IPP. The statewide Self-Determination Program
shall be phased in over three years, and during this phase-in period,
shall serve up to 2,500 regional center consumers, inclusive of the
remaining participants in the self-determination pilot projects
authorized pursuant to Section 13 of Chapter 1043 of the Statutes
of 1998, as amended, and Article 4 (commencing with Section
4669.2) of Chapter 5. Following the phase-in period, the program
shall be available on a voluntary basis to all regional center
consumers who are eligible for the Self-Determination Program.
The program shall be available to individuals who reflect the
disability, ethnic, and geographic diversity of the state.

(b) The department in establishing the statewide program shall
do both of the following:

(1) For the first three years of the Self-Determination Program,
determine, as part of the contracting process described in Sections
4620 and 4629, the number of participants each regional center
shall serve in its Self-Determination Program. To ensure that the
program is available on an equitable basis to participants in all
regional center catchment areas, the number of Self-Determination
Program participants in each regional center shall be based on the
relative percentage of total consumers served by the regional
centers minus any remaining participants in the self-determination
pilot projects authorized pursuant to Section 13 of Chapter 1043
of the Statutes of 1998, as amended, and Article 4 (commencing
with Section 4669.2) of Chapter 5 or another equitable basis.

(2) Ensure all of the following:

(A) Oversight of expenditure of self-determined funds and the
achievement of participant outcomes over time.

(B) Increased participant control over which services and
supports best meet begin delete their end delete begin insert his or her end insert needs and the IPP objectives.
A participant’s unique support system may include the purchase
of existing service offerings from service providers or local
businesses, hiring his or her own support workers, or negotiating
unique service arrangements with local community resources.

(C) Comprehensive person-centered planning, including an
individual budget and services that are outcome based.

(D) Consumer and family training to ensure understanding of
the principles of self-determination, the planning process, and the
management of budgets, services, and staff.

(E) Choice of independent facilitators who can assist with the
person-centered planning process and choice of financial
management services providers vendored by regional centers who
can assist with payments and provide employee-related services.

(F) Innovation that will more effectively allow participants to
achieve their goals.

(c) For purposes of this section, the following definitions begin delete shall end delete
apply:

(1) “Financial management services” means services or
functions that assist the participant to manage and direct the
distribution of funds contained in the individual budget, and ensure
that the participant has the financial resources to implement his or
her IPP throughout the year. These may include bill paying services
and activities that facilitate the employment of service and support
workers by the participant, including, but not limited to, fiscal
accounting, tax withholding, compliance with relevant state and
federal employment laws, assisting the participant in verifying
provider qualifications, including criminal background checks,
and expenditure reports. The financial management services
provider shall meet the requirements of Sections 58884, 58886,
and 58887 of Title 17 of the California Code of Regulations and
other specific qualifications established by the department. The
costs of financial management services shall be paid by the
participant out of his or her individual budget, except for the cost
of obtaining the criminal background check specified in subdivision
(w).

(2) “Independent facilitator” means a person, selected and
directed by the participant, who is not otherwise providing services
to the participant pursuant to his or her IPP and is not employed
by a person providing services to the participant. The independent
facilitator may assist the participant in making informed decisions
about the individual budget, and in locating, accessing, and
coordinating services and supports consistent with the participant’s
IPP. He or she is available to assist in identifying immediate and
long-term needs, developing options to meet those needs, leading,
participating, or advocating on behalf of the participant in the
person-centered planning process and development of the IPP, and
obtaining identified services and supports. The cost of the
independent facilitator, if any, shall be paid by the participant out
of his or her individual budget. An independent facilitator shall
receive training in the principles of self-determination, the
person-centered planning process, and the other responsibilities
described in this paragraph at his or her own cost.

(3) “Individual budget” means the amount of regional center
purchase of service funding available to the participant for the
purchase of services and supports necessary to implement the IPP.
The individual budget shall be determined using a fair, equitable,
and transparent methodology.

(4) “IPP” means individual program plan, as described in Section
4646.

(5) “Participant” means an individual, and when appropriate,
his or her parents, legal guardian or conservator, or authorized
representative, who has been deemed eligible for, and has
voluntarily agreed to participate in, the Self-Determination
Program.

(6) “Self-determination” means a voluntary delivery system
consisting of a defined and comprehensive mix of services and
supports, selected and directed by a participant through
person-centered planning, in order to meet the objectives in his or
her IPP. Self-determination services and supports are designed to
assist the participant to achieve personally defined outcomes in
community settings that promote inclusion. The Self-Determination
Program shall only fund services and supports provided pursuant
to this division that the federal Centers for Medicare and Medicaid
Services determines are eligible for federal financial participation.

(d) Participation in the Self-Determination Program is fully
voluntary. A participant may choose to participate in, and may
choose to leave, the Self-Determination Program at any time. A
regional center shall not require or prohibit participation in the
Self-Determination Program as a condition of eligibility for, or
the delivery of, services and supports otherwise available under
this division. Participation in the Self-Determination Program shall
be available to any regional center consumer who meets the
following eligibility requirements:

(1) The participant has a developmental disability, as defined
in Section 4512 begin insert , end insert and is receiving services pursuant to this division.

(2) The consumer does not live in a licensed long-term health
care facility, as defined in paragraph (44) of subdivision (a) of
Section 54302 of Title 17 of the California Code of Regulations.
An individual, and when appropriate his or her parent, legal
guardian or conservator, or authorized representative, who is not
eligible to participate in the Self-Determination Program pursuant
to this paragraph may request that the regional center provide
person-centered planning services in order to make arrangements
for transition to the Self-Determination Program, provided that he
or she is reasonably expected to transition to the community within
90 days. In that case, the regional center shall initiate
person-centered planning services within 60 days of that request.

(3) The participant agrees to all of the following terms and
conditions:

(A) The participant shall receive an orientation to the
Self-Determination Program prior to enrollment, which includes
the principles of self-determination, the role of the independent
facilitator and the financial management services provider,
person-centered planning, and development of a budget.

(B) The participant shall utilize the services and supports
available within the Self-Determination Program only when generic
services and supports are not available.

(C) The participant shall only purchase services and supports
necessary to implement his or her IPP and shall comply with any
and all other terms and conditions for participation in the
Self-Determination Program described in this section.

(D) The participant shall manage Self-Determination Program
services and supports within his or her individual budget.

(E) The participant shall utilize the services of a financial
management services provider of his or her own choosing and who
is vendored by a regional center.

(F) The participant may utilize the services of an independent
facilitator of his or her own choosing for the purpose of providing
services and functions as described in paragraph (2) of subdivision
(c). If the participant elects not to use an independent facilitator,
he or she may use his or her regional center service coordinator to
provide the services and functions described in paragraph (2) of
subdivision (c).

(e) A participant who is not Medi-Cal eligible may participate
in the Self-Determination Program and receive self-determination
services and supports if all other program eligibility requirements
are met and the services and supports are otherwise eligible for
federal financial participation.

(f) An individual receiving services and supports under a
self-determination pilot project authorized pursuant to Section 13
of Chapter 1043 of the Statutes of 1998, as amended, or pursuant
to Article 4 (commencing with Section 4669.2) of Chapter 5, may
elect to continue to receive self-determination services and supports
pursuant to this section or the regional center shall provide for the
participant’s transition from the self-determination pilot program
to other services and supports. This transition shall include the
development of a new IPP that reflects the services and supports
necessary to meet the individual’s needs. The regional center shall
ensure that there is no gap in services and supports during the
transition period.

(g) The additional federal financial participation funds generated
by the former participants of the self-determination pilot projects
authorized pursuant to Section 13 of Chapter 1043 of the Statutes
of 1998, as amended, or pursuant to Article 4 (commencing with
Section 4669.2) of Chapter 5, shall be used as follows:

(1) First, to offset the cost to the department for the criminal
background check conducted pursuant to subdivision (w), and
other administrative costs incurred by the department in
implementing the Self-Determination Program.

(2) With the remaining funds, to offset the costs to the regional
centers in implementing the Self-Determination Program,
including, but not limited to, operations costs for caseload ratio
enhancement, training for regional center staff, costs associated
with the participant’s initial person-centered planning meeting,
the development of the participant’s initial individual budget, and
the costs associated with training consumers and family members.

(h) If at any time during participation in the Self-Determination
Program a regional center determines that a participant is no longer
eligible to continue in, or a participant voluntarily chooses to exit,
the Self-Determination Program, the regional center shall provide
for the participant’s transition from the Self-Determination Program
to other services and supports. This transition shall include the
development of a new IPP that reflects the services and supports
necessary to meet the individual’s needs. The regional center shall
ensure that there is no gap in services and supports during the
transition period.

(i) An individual determined to be ineligible for or who
voluntarily exits the Self-Determination Program shall be permitted
to return to the Self-Determination Program upon meeting all
applicable eligibility criteria and upon approval of the participant’s
planning team, as described in subdivision (j) of Section 4512. An
individual who has voluntarily exited the Self-Determination
Program shall not return to the program for at least 12 months.
During the first three years of the program, the individual’s right
to return to the program is conditioned on his or her regional center
not having reached the participant cap imposed by paragraph (1)
of subdivision (b).

(j) An individual who participates in the Self-Determination
Program may elect to continue to receive self-determination
services and supports if he or she transfers to another regional
center catchment area, provided that he or she remains eligible for
the Self-Determination Program pursuant to subdivision (d). The
balance of the participant’s individual budget shall be reallocated
to the regional center to which he or she transfers.

(k) The IPP team shall utilize the person-centered planning
process to develop the IPP for a participant. The IPP shall detail
the goals and objectives of the participant that are to be met through
the purchase of participant-selected services and supports. The
IPP team shall determine the individual budget to ensure the budget
assists the participant to achieve the outcomes set forth in his or
her IPP and ensures his or her health and safety. The completed
individual budget shall be attached to the IPP.

(l) The participant shall implement his or her IPP, including
choosing and purchasing the services and supports allowable under
this section necessary to implement the plan. A participant is
exempt from the cost control restrictions regarding the purchases
of services and supports pursuant to Sections 4648.5 and 4686.5.
A regional center shall not prohibit the purchase of any service or
support that is otherwise allowable under this section.

(m) A participant shall have all the rights established in Sections
4646 to 4646.6, inclusive, and Chapter 7 (commencing with Section
4700).

(n) (1) Except as provided in paragraph (4), the IPP team shall
determine the initial and any revised individual budget for the
participant using the following methodology:

(A) (i) Except as specified in clause (ii), for a participant who
is a current consumer of the regional center, his or her individual
budget shall be the total amount of the most recently available 12
months of purchase of service expenditures for the participant.

(ii) An adjustment may be made to the amount specified in
clause (i) if both of the following occur:

(I) The IPP team determines that an adjustment to this amount
is necessary due to a change in the participant’s circumstances,
needs, or resources that would result in an increase or decrease in
purchase of service expenditures, or the IPP team identifies prior
needs or resources that were unaddressed in the IPP, which would
have resulted in an increase or decrease in purchase of service
expenditures.

(II) The regional center certifies on the individual budget
document that regional center expenditures for the individual
budget, including any adjustment, would have occurred regardless
of the individual’s participation in the Self-Determination Program.

(iii) For purposes of clauses (i) and (ii), the amount of the
individual budget shall not be increased to cover the cost of the
independent facilitator or the financial management services.

(B) For a participant who is either newly eligible for regional
center services or who does not have 12 months of purchase service
expenditures, his or her individual budget shall be calculated as
follows:

(i) The IPP team shall identify the services and supports needed
by the participant and available resources, as required by Section
4646.

(ii) The regional center shall calculate the cost of providing the
services and supports to be purchased by the regional center by
using the average cost paid by the regional center for each service
or support unless the regional center determines that the consumer
has a unique need that requires a higher or lower cost. The regional
center shall certify on the individual budget document that this
amount would have been expended using regional center purchase
of service funds regardless of the individual’s participation in the
Self-Determination Program.

(iii) For purposes of clauses (i) and (ii), the amount of the
individual budget shall not be increased to cover the cost of the
independent facilitator or the financial management services.

(2) The amount of the individual budget shall be available to
the participant each year for the purchase of program services and
supports. An individual budget shall be calculated no more than
once in a 12-month period, unless revised to reflect a change in
circumstances, needs, or resources of the participant using the
process specified in clause (ii) of subparagraph (A) of paragraph
(1).

(3) The individual budget shall be assigned to uniform budget
categories developed by the department in consultation with
stakeholders and distributed according to the timing of the
anticipated expenditures in the IPP and in a manner that ensures
that the participant has the financial resources to implement his or
her IPP throughout the year.

(4) The department, in consultation with stakeholders, may
develop alternative methodologies for individual budgets that are
computed in a fair, transparent, and equitable manner and are based
on consumer characteristics and needs, and that include a method
for adjusting individual budgets to address a participant’s change
in circumstances or needs.

(o) Annually, participants may transfer up to 10 percent of the
funds originally distributed to any budget category set forth in
paragraph (3) of subdivision (n) to another budget category or
categories. Transfers in excess of 10 percent of the original amount
allocated to any budget category may be made upon the approval
of the regional center or the participant’s IPP team.

(p) Consistent with the implementation date of the IPP, the IPP
team shall annually ascertain from the participant whether there
are any circumstances or needs that require a change to the annual
individual budget. Based on that review, the IPP team shall
calculate a new individual budget consistent with the methodology
identified in subdivision (n).

(q) (1) On or before December 31, 2014, the department shall
apply for federal Medicaid funding for the Self-Determination
Program by doing one or more of the following:

(A) Applying for a state plan amendment.

(B) Applying for an amendment to a current home- and
community-based waiver for individuals with developmental
disabilities.

(C) Applying for a new waiver.

(D) Seeking to maximize federal financial participation through
other means.

(2) To the extent feasible, the state plan amendment, waiver, or
other federal request described in paragraph (1) shall incorporate
the eligibility requirements, benefits, and operational requirements
set forth in this section. Except for the provisions of subdivisions
(k), (m), (p), and this subdivision, the department may modify
eligibility requirements, benefits, and operational requirements as
needed to secure approval of federal funding.

(3) Contingent upon approval of federal funding, the
Self-Determination Program shall be established.

(r) (1) The department, as it determines necessary, may adopt
regulations to implement the procedures set forth in this section.
Any regulations shall be adopted in accordance with the
requirements of Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code.

(2) Notwithstanding paragraph (1) and Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code, and only to the extent that all necessary federal
approvals are obtained, the department, without taking any further
regulatory action, shall implement, interpret, or make specific this
section by means of program directives or similar instructions until
the time regulations are adopted. It is the intent of the Legislature
that the department be allowed this temporary authority as
necessary to implement program changes only until completion
of the regulatory process.

(s) The department, in consultation with stakeholders, shall
develop informational materials about the Self-Determination
Program. The department shall ensure that regional centers are
trained in the principles of self-determination, the mechanics of
the Self-Determination Program, and the rights of consumers and
families as candidates for, and participants in, the
Self-Determination Program.

(t) Each regional center shall be responsible for implementing
the Self-Determination Program as a term of its contract under
Section 4629. As part of implementing the program, the regional
center shall do both of the following:

(1) Contract with local consumer or family-run organizations
to conduct outreach through local meetings or forums to consumers
and their families to provide information about the
Self-Determination Program and to help ensure that the program
is available to a diverse group of participants, with special outreach
to underserved communities.

(2) Collaborate with the local consumer or family-run
organizations identified in paragraph (1) to jointly conduct training
about the Self-Determination Program.

(u) The financial management services provider shall provide
the participant and the regional center service coordinator with a
monthly individual budget statement that describes the amount of
funds allocated by budget category, the amount spent in the
previous 30-day period, and the amount of funding that remains
available under the participant’s individual budget.

(v) Only the financial management services provider is required
to apply for vendorization in accordance with Subchapter 2
(commencing with Section 54300) of Chapter 3 of Title 17 of the
California Code of Regulations, for the Self-Determination
Program. All other service and support providers shall not be on
the federal debarment list and shall have applicable state licenses,
certifications, or other state required documentation, including
documentation of any other qualifications required by the
department, but are exempt from the vendorization requirements
set forth in Title 17 of the California Code of Regulations when
serving participants in the Self-Determination Program.

(w) To protect the health and safety of participants in the
Self-Determination Program, the department shall require a
criminal background check in accordance with all of the following:

(1) The department shall issue a program directive that identifies
nonvendored providers of services and supports who shall obtain
a criminal background check pursuant to this subdivision. At a
minimum these staff shall include both of the following:

(A) Individuals who provide direct personal care services to a
participant.

(B) Other nonvendored providers of services and supports for
whom a criminal background check is requested by a participant
or the participant’s financial management service.

(2) Subject to the procedures and requirements of this
subdivision, the department shall administer criminal background
checks consistent with the department’s authority and the process
described in Sections 4689.2 to 4689.6, inclusive.

(3) The department shall electronically submit to the Department
of Justice fingerprint images and related information required by
the Department of Justice of nonvendored providers of services
and supports, as specified in paragraph (1), for begin delete the end delete purposes of
obtaining information as to the existence and content of a record
of state or federal convictions and state or federal arrests and also
information as to the existence and content of a record of state or
federal arrests for which the Department of Justice establishes that
the person is free on bail or on his or her recognizance pending
trial or appeal.

(4) When received, the Department of Justice shall forward to
the Federal Bureau of Investigation requests for federal summary
criminal history information received pursuant to this section. The
Department of Justice shall review the information returned from
the Federal Bureau of Investigation and compile and disseminate
a response to the department.

(5) The Department of Justice shall provide a state or federal
response to the department pursuant to paragraph (1) of subdivision
(p) of Section 11105 of the Penal Code.

(6) The department shall request from the Department of Justice
subsequent notification service, as provided pursuant to Section
11105.2 of the Penal Code, for persons described in paragraph (1).

(7) The Department of Justice shall charge a fee sufficient to
cover the cost of processing the request described in this
subdivision.

(8) The fingerprints of any provider of services and supports
who is required to obtain a criminal background check shall be
submitted to the Department of Justice prior to employment. The
costs of the fingerprints and the financial management service’s
administrative cost authorized by the department shall be paid by
the services and supports provider or his or her employing agency.
Any administrative costs incurred by the department pursuant to
this subdivision shall be offset by the funds specified in subdivision
(g).

(9) If the criminal record information report shows a criminal
history, the department shall take the steps specified in Section
4689.2. The department may prohibit a provider of services and
supports from becoming employed, or continuing to be employed,
based on the criminal background check, as authorized in Section
4689.6. The provider of services and supports who has been denied
employment shall have the rights set forth in Section 4689.6.

(10) The department may utilize a current department-issued
criminal record clearance to enable a provider to serve more than
one participant, as long as the criminal record clearance has been
processed through the department and no subsequent arrest
notifications have been received relative to the cleared applicant.

(11) Consistent with subdivision (h) of Section 4689.2, the
participant or financial management service that denies or
terminates employment based on written notification from the
department shall not incur civil liability or unemployment insurance
liability.

(x) To ensure the effective implementation of the
Self-Determination Program and facilitate the sharing of best
practices and training materials commencing with the
implementation of the Self-Determination Program, local and
statewide advisory committees shall be established as follows:

(1) Each regional center shall establish a local volunteer advisory
committee to provide oversight of the Self-Determination Program.
The regional center and the area board shall each appoint one-half
of the membership of the committee. The committee shall consist
of the regional center clients’ rights advocate, consumers, family
members, and other advocates, and community leaders. A majority
of the committee shall be consumers and their family members.
The committee shall reflect the multicultural diversity and
geographic profile of the catchment area. The committee shall
review the development and ongoing progress of the
Self-Determination Program, including whether the program
advances the principles of self-determination and is operating
consistent with the requirements of this section, and may make
ongoing recommendations for improvement to the regional center
and the department.

(2) The State Council on Developmental Disabilities shall form
a volunteer committee, to be known as the Statewide
Self-Determination Advisory Committee, comprised of the chairs
of the 21 local advisory committees or their designees. The council
shall convene the Statewide Self-Determination Advisory
Committee twice annually, or more frequently in the sole discretion
of the council. The Statewide Self-Determination Advisory
Committee shall meet by teleconference or other means established
by the council, to identify self-determination best practices,
effective consumer and family training materials, implementation
concerns, systemic issues, ways to enhance the program, and
recommendations regarding the most effective method for
participants to learn of individuals who are available to provide
services and supports. The council shall synthesize information
received from the Statewide Self-Determination Advisory
Committee, local advisory committees, and other sources, shall
share the information with consumers, families, regional centers,
and the department, and shall make recommendations, as
appropriate, to increase the program’s effectiveness in furthering
the principles of self-determination.

(y) Commencing January 10, 2017, the department shall
annually provide the following information to the appropriate
policy and fiscal committees of the Legislature:

(1) Number and characteristics of participants, by regional
center.

(2) Types and amount of services and supports purchased under
the Self-Determination Program, by regional center.

(3) Range and average of individual budgets, by regional center,
including adjustments to the budget to address the adjustments
permitted in clause (ii) of subparagraph (A) of paragraph (1) of
subdivision (n).

(4) The number and outcome of appeals concerning individual
budgets, by regional center.

(5) The number and outcome of fair hearing appeals, by regional
center.

(6) The number of participants who voluntarily withdraw from
the Self-Determination Program and a summary of the reasons
why, by regional center.

(7) The number of participants who are subsequently determined
to no longer be eligible for the Self-Determination Program and a
summary of the reasons why, by regional center.

(z) (1) The State Council on Developmental Disabilities, in
collaboration with the protection and advocacy agency identified
in Section 4900 and the federally funded University Centers for
Excellence in Developmental Disabilities Education, Research,
and Service, may work with regional centers to survey participants
regarding participant satisfaction under the Self-Determination
begin delete Program, end delete begin insert Program end insert and, when data is available, the traditional
service delivery system, including the proportion of participants
who report that their choices and decisions are respected and
supported and who report that they are able to recruit and hire
qualified service providers, and to identify barriers to participation
and recommendations for improvement.

(2) The council, in collaboration with the protection and
advocacy agency identified in Section 4900 and the federally
funded University Centers for Excellence in Developmental
Disabilities Education, Research, and Service, shall issue a report
to the Legislature, in compliance with Section 9795 of the
Government Code, no later than three years following the approval
of the federal funding on the status of the Self-Determination
Program authorized by this section, and provide recommendations
to enhance the effectiveness of the program. This review shall
include the program’s effectiveness in furthering the principles of
self-determination, including all of the following:

(A) Freedom, which includes the ability of adults with
developmental disabilities to exercise the same rights as all begin delete citizens; end delete
begin insert citizens end insert to establish, with freely chosen supporters, family and
friends, where they want to live, with whom they want to live, how
their time will be occupied, and who supports them; begin delete and, for
families, end delete begin insert and for families end insert to have the freedom to receive unbiased
assistance of their own choosing when developing a plan and to
select all personnel and supports to further the life goals of a minor
child.

(B) Authority, which includes the ability of a person with a
disability, or family, to control a certain sum of dollars in order to
purchase services and supports of their choosing.

(C) Support, which includes the ability to arrange resources and
personnel, both formal and informal, that will assist a person with
a disability to live a life in his or her community that is rich in
community participation and contributions.

(D) Responsibility, which includes the ability of participants to
take responsibility for decisions in their own lives and to be
accountable for the use of public dollars, and to accept a valued
role in their community through, for example, competitive
employment, organizational affiliations, spiritual development,
and general caring of others in their community.

(E) Confirmation, which includes confirmation of the critical
role of participants and their families in making decisions in their
own lives and designing and operating the system that they rely
on.

SEC. 188.  

Section 5848.5 of the Welfare and Institutions Code
is amended to read:

5848.5.  

(a) The Legislature finds and declares all of the
following:

(1) California has realigned public community mental health
services to counties and it is imperative that sufficient
community-based resources be available to meet the mental health
needs of eligible individuals.

(2) Increasing access to effective outpatient and crisis
stabilization services provides an opportunity to reduce costs
associated with expensive inpatient and emergency room care and
to better meet the needs of individuals with mental health disorders
in the least restrictive manner possible.

(3) Almost one-fifth of people with mental health disorders visit
a hospital emergency room at least once per year. If an adequate
array of crisis services is not available, it leaves an individual with
little choice but to access an emergency room for assistance and,
potentially, an unnecessary inpatient hospitalization.

(4) Recent reports have called attention to a continuing problem
of inappropriate and unnecessary utilization of hospital emergency
rooms in California due to limited community-based services for
individuals in psychological distress and acute psychiatric crisis.
Hospitals report that 70 percent of people taken to emergency
rooms for psychiatric evacuation can be stabilized and transferred
to a less intensive level of crisis care. Law enforcement personnel
report that their personnel need to stay with people in the
emergency room waiting area until a placement is found, and that
less intensive levels of care tend not to be available.

(5) Comprehensive public and private partnerships at both local
and regional levels, including across physical health services,
mental health, substance use disorder, law enforcement, social
services, and related supports, are necessary to develop and
maintain high quality, patient-centered, and cost-effective care for
individuals with mental health disorders that facilitates their
recovery and leads towards wellness.

(6) The recovery of individuals with mental health disorders is
important for all levels of government, business, and the local
community.

(b) This section shall be known, and may be cited, as the
Investment in Mental Health Wellness Act of 2013. The objectives
of this section are to do all of the following:

(1) Expand access to early intervention and treatment services
to improve the client experience, achieve recovery and wellness,
and reduce costs.

(2) Expand the continuum of services to address crisis
intervention, crisis stabilization, and crisis residential treatment
needs that are wellness, resiliency, and recovery oriented.

(3) Add at least 25 mobile crisis support teams and at least 2,000
crisis stabilization and crisis residential treatment beds to bolster
capacity at the local level to improve access to mental health crisis
services and address unmet mental health care needs.

(4) Add at least 600 triage personnel to provide intensive case
management and linkage to services for individuals with mental
health care disorders at various points of access, such as at
designated community-based service points, homeless shelters,
and clinics.

(5) Reduce unnecessary hospitalizations and inpatient days by
appropriately utilizing community-based services and improving
access to timely assistance.

(6) Reduce recidivism and mitigate unnecessary expenditures
of local law enforcement.

(7) Provide local communities with increased financial resources
to leverage additional public and private funding sources to achieve
improved networks of care for individuals with mental health
disorders.

(c) Through appropriations provided in the annual Budget Act
for this purpose, it is the intent of the Legislature to authorize the
California Health Facilities Financing Authority, hereafter referred
to as the authority, and the Mental Health Services Oversight and
Accountability Commission, hereafter referred to as the
commission, to administer competitive selection processes as
provided in this section for capital capacity and program expansion
to increase capacity for mobile crisis support, crisis intervention,
crisis stabilization services, crisis residential treatment, and
specified personnel resources.

(d) Funds appropriated by the Legislature to the authority for
begin delete the end delete purposes of this section shall be made available to selected
counties, or counties acting jointly. The authority may, at its
discretion, also give consideration to private nonprofit corporations
and public agencies in an area or region of the state if a county, or
counties acting jointly, affirmatively supports this designation and
collaboration in lieu of a county government directly receiving
grant funds.

(1) Grant awards made by the authority shall be used to expand
local resources for the development, capital, equipment acquisition,
and applicable program startup or expansion costs to increase
capacity for client assistance and services in the following areas:

(A) Crisis intervention, as authorized by Sections 14021.4,
14680, and 14684.

(B) Crisis stabilization, as authorized by Sections 14021.4,
14680, and 14684.

(C) Crisis residential treatment, as authorized by Sections
14021.4, 14680, and 14684.

(D) Rehabilitative mental health services, as authorized by
Sections 14021.4, 14680, and 14684.

(E) Mobile crisis support teams, including personnel and
equipment, such as the purchase of vehicles.

(2) The authority shall develop selection criteria to expand local
resources, including those described in paragraph (1), and processes
for awarding grants after consulting with representatives and
interested stakeholders from the mental health community,
including, but not limited to, county mental health directors, service
providers, consumer organizations, and other appropriate interests,
such as health care providers and law enforcement, as determined
by the authority. The authority shall ensure that grants result in
cost-effective expansion of the number of community-based crisis
resources in regions and communities selected for funding. The
authority shall also take into account at least the following criteria
and factors when selecting recipients of grants and determining
the amount of grant awards:

(A) Description of need, including, at a minimum, a
comprehensive description of the project, community need,
population to be served, linkage with other public systems of health
and mental health care, linkage with local law enforcement, social
services, and related assistance, as applicable, and a description
of the request for funding.

(B) Ability to serve the target population, which includes
individuals eligible for Medi-Cal and individuals eligible for county
health and mental health services.

(C) Geographic areas or regions of the state to be eligible for
grant awards, which may include rural, suburban, and urban areas,
and may include use of the five regional designations utilized by
the California Mental Health Directors Association.

(D) Level of community engagement and commitment to project
completion.

(E) Financial support that, in addition to a grant that may be
awarded by the authority, will be sufficient to complete and operate
the project for which the grant from the authority is awarded.

(F) Ability to provide additional funding support to the project,
including public or private funding, federal tax credits and grants,
foundation support, and other collaborative efforts.

(G) Memorandum of understanding among project partners, if
applicable.

(H) Information regarding the legal status of the collaborating
partners, if applicable.

(I) Ability to measure key outcomes, including improved access
to services, health and mental health outcomes, and cost benefit
of the project.

(3) The authority shall determine maximum grants awards,
which shall take into consideration the number of projects awarded
to the grantee, as described in paragraph (1), and shall reflect
reasonable costs for the project and geographic region. The
authority may allocate a grant in increments contingent upon the
phases of a project.

(4) Funds awarded by the authority pursuant to this section may
be used to supplement, but not to supplant, existing financial and
resource commitments of the grantee or any other member of a
collaborative effort that has been awarded a grant.

(5) All projects that are awarded grants by the authority shall
be completed within a reasonable period of time, to be determined
by the authority. Funds shall not be released by the authority until
the applicant demonstrates project readiness to the authority’s
satisfaction. If the authority determines that a grant recipient has
failed to complete the project under the terms specified in awarding
the grant, the authority may require remedies, including the return
of all or a portion of the grant.

(6) A grantee that receives a grant from the authority under this
section shall commit to using that capital capacity and program
expansion project, such as the mobile crisis team, crisis
stabilization unit, or crisis residential treatment program, for the
duration of the expected life of the project.

(7) The authority may consult with a technical assistance entity,
as described in paragraph (5) of subdivision (a) of Section 4061
begin delete of the Welfare and Institutions Code end delete , for begin delete the end delete purposes of
implementing this section.

(8) The authority may adopt emergency regulations relating to
the grants for the capital capacity and program expansion projects
described in this section, including emergency regulations that
define eligible costs and determine minimum and maximum grant
amounts.

(9) The authority shall provide reports to the fiscal and policy
committees of the Legislature on or before May 1, 2014, and begin insert on end insert
or before May 1, 2015, on the progress of implementation, that
includes, but are not limited to, the following:

(A) A description of each project awarded funding.

(B) The amount of each grant issued.

(C) A description of other sources of funding for each project.

(D) The total amount of grants issued.

(E) A description of project operation and implementation,
including who is being served.

(10) A recipient of a grant provided pursuant to paragraph (1)
shall adhere to all applicable laws relating to scope of practice,
licensure, certification, staffing, and building codes.

(e) Funds appropriated by the Legislature to the commission
for begin delete the end delete purposes of this section shall be allocated for triage
personnel to provide intensive case management and linkage to
services for individuals with mental health disorders at various
points of access. These funds shall be made available to selected
counties, counties acting jointly, or city mental health departments,
as determined by the commission through a selection process. It
is the intent of the Legislature for these funds to be allocated in an
efficient manner to encourage early intervention and receipt of
needed services for individuals with mental health disorders, and
to assist in navigating the local service sector to improve
efficiencies and the delivery of services.

(1) Triage personnel may provide targeted case management
services face to face, by telephone, or by telehealth with the
individual in need of assistance or his or her significant support
person, and may be provided anywhere in the community. These
service activities may include, but are not limited to, the following:

(A) Communication, coordination, and referral.

(B) Monitoring service delivery to ensure the individual accesses
and receives services.

(C) Monitoring the individual’s progress.

(D) Providing placement service assistance and service plan
development.

(2) The commission shall take into account at least the following
criteria and factors when selecting recipients and determining the
amount of grant awards for triage personnel as follows:

(A) Description of need, including potential gaps in local service
connections.

(B) Description of funding request, including personnel and use
of peer support.

(C) Description of how triage personnel will be used to facilitate
linkage and access to services, including objectives and anticipated
outcomes.

(D) Ability to obtain federal Medicaid reimbursement, when
applicable.

(E) Ability to administer an effective service program and the
degree to which local agencies and service providers will support
and collaborate with the triage personnel effort.

(F) Geographic areas or regions of the state to be eligible for
grant awards, which shall include rural, suburban, and urban areas,
and may include use of the five regional designations utilized by
the California Mental Health Directors Association.

(3) The commission shall determine maximum grant awards,
and shall take into consideration the level of need, population to
be served, and related criteria, as described in paragraph (2), and
shall reflect reasonable costs.

(4) Funds awarded by the commission for purposes of this
section may be used to supplement, but not supplant, existing
financial and resource commitments of the county, counties acting
jointly, or city mental health department that received the grant.

(5) Notwithstanding any other law, a county, counties acting
jointly, or city mental health department that receives an award of
funds for the purpose of supporting triage personnel pursuant to
this subdivision is not required to provide a matching contribution
of local funds.

(6) Notwithstanding any other law, the commission, without
taking any further regulatory action, may implement, interpret, or
make specific this section by means of informational letters,
bulletins, or similar instructions.

(7) The commission shall provide a status report to the fiscal
and policy committees of the Legislature on the progress of
implementation no later than March 1, 2014.

SEC. 189.  

Section 6604.9 of the Welfare and Institutions Code
is amended to read:

6604.9.  

(a) A person found to be a sexually violent predator
and committed to the custody of the State Department of State
Hospitals shall have a current examination of his or her mental
condition made at least once every year. The report shall be in the
form of a declaration and shall be prepared by a professionally
qualified person. The person may retain or, if he or she is indigent
and so requests, the court may appoint, a qualified expert or
professional person to examine him or her, and the expert or
professional person shall have access to all records concerning the
person.

(b) The annual report shall include consideration of whether the
committed person currently meets the definition of a sexually
violent predator and whether conditional release to a less restrictive
alternative, pursuant to Section 6608, or an unconditional
discharge, pursuant to Section 6605, is in the best interest of the
person and conditions can be imposed that would adequately
protect the community.

(c) The State Department of State Hospitals shall file this
periodic report with the court that committed the person under this
article. A copy of the report shall be served on the prosecuting
agency involved in the initial commitment and upon the committed
person.

(d) If the State Department of State Hospitals determines that
either: (1) the person’s condition has so changed that the person
no longer meets the definition of a sexually violent predator and
should, begin delete therefor, end delete begin insert therefore, end insert be considered for unconditional
discharge, or (2) conditional release to a less restrictive alternative
is in the best interest of the person and conditions can be imposed
that adequately protect the community, the director shall authorize
the person to petition the court for conditional release to a less
restrictive alternative or for an unconditional discharge. The
petition shall be filed with the court and served upon the
prosecuting agency responsible for the initial commitment.

(e) The court, upon receipt of the petition for conditional release
to a less restrictive alternative, shall consider the petition using
procedures described in Section 6608.

(f) The court, upon receiving a petition for unconditional
discharge, shall order a show cause hearing, pursuant to the
provisions of Section 6605, at which the court may consider the
petition and any accompanying documentation provided by the
medical director, the prosecuting attorney, or the committed person.

SEC. 190.  

Section 8103 of the Welfare and Institutions Code
is amended to read:

8103.  

(a) (1)  begin delete No end delete begin insert A end insert person who begin insert , end insert after October 1, 1955, has
been adjudicated by a court of any state to be a danger to others
as a result of a mental disorder or mental illness, or who has been
adjudicated to be a mentally disordered sex offender, shall begin insert not end insert
purchase or receive, or attempt to purchase or receive, or have in
his or her possession, custody, or control any firearm or any other
deadly weapon unless there has been issued to the person a
certificate by the court of adjudication upon release from treatment
or at a later date stating that the person may possess a firearm or
any other deadly weapon without endangering others, and the
person has not, subsequent to the issuance of the certificate, again
been adjudicated by a court to be a danger to others as a result of
a mental disorder or mental illness.

(2) The court shall notify the Department of Justice of the court
order finding the individual to be a person described in paragraph
(1) as soon as possible, but not later than two court days after
issuing the order. The court shall also notify the Department of
Justice of any certificate issued as described in paragraph (1) as
soon as possible, but not later than two court days after issuing the
certificate.

(b) (1)  begin delete No end delete begin insert A end insert person who has been found, pursuant to Section
1026 of the Penal Code or the law of any other state or the United
States, not guilty by reason of insanity of murder, mayhem, a
violation of Section 207, 209, or 209.5 of the Penal Code in which
the victim suffers intentionally inflicted great bodily injury,
carjacking or robbery in which the victim suffers great bodily
injury, a violation of Section 451 or 452 of the Penal Code
involving a trailer coach, as defined in Section 635 of the Vehicle
Code, or any dwelling house, a violation of paragraph (1) or (2)
of subdivision (a) of Section 262 or paragraph (2) or (3) of
subdivision (a) of Section 261 of the Penal Code, a violation of
Section 459 of the Penal Code in the first degree, assault with
intent to commit murder, a violation of Section 220 of the Penal
Code in which the victim suffers great bodily injury, a violation
of Section 18715, 18725, 18740, 18745, 18750, or 18755 of the
Penal Code, or of a felony involving death, great bodily injury, or
an act begin delete which end delete begin insert that end insert poses a serious threat of bodily harm to another
person, or a violation of the law of any other state or the United
States that includes all the elements of any of the above felonies
as defined under California law, shall begin insert not end insert purchase or receive, or
attempt to purchase or receive, or have in his or her possession or
under his or her custody or control any firearm or any other deadly
weapon.

(2) The court shall notify the Department of Justice of the court
order finding the person to be a person described in paragraph (1)
as soon as possible, but not later than two court days after issuing
the order.

(c) (1)  begin delete No end delete begin insert A end insert person who has been found, pursuant to Section
1026 of the Penal Code or the law of any other state or the United
States, not guilty by reason of insanity of any crime other than
those described in subdivision (b) shall begin insert not end insert purchase or receive,
or attempt to purchase or receive, or shall begin insert not end insert have in his or her
possession, custody, or control any firearm or any other deadly
weapon unless the court of commitment has found the person to
have recovered sanity, pursuant to Section 1026.2 of the Penal
Code or the law of any other state or the United States.

(2) The court shall notify the Department of Justice of the court
order finding the person to be a person described in paragraph (1)
as soon as possible, but not later than two court days after issuing
the order. The court shall also notify the Department of Justice
when it finds that the person has recovered his or her sanity as
soon as possible, but not later than two court days after making
the finding.

(d) (1)  begin delete No end delete begin insert A end insert person found by a court to be mentally incompetent
to stand trial, pursuant to Section 1370 or 1370.1 of the Penal Code
or the law of any other state or the United States, shall begin insert not end insert purchase
or receive, or attempt to purchase or receive, or shall begin insert not end insert have in
his or her possession, custody, or control, any firearm or any other
deadly weapon, unless there has been a finding with respect to the
person of restoration to competence to stand trial by the committing
court, pursuant to Section 1372 of the Penal Code or the law of
any other state or the United States.

(2) The court shall notify the Department of Justice of the court
order finding the person to be mentally incompetent as described
in paragraph (1) as soon as possible, but not later than two court
days after issuing the order. The court shall also notify the
Department of Justice begin delete when end delete begin insert , if end insert it finds that the person has recovered
his or her competence begin insert , end insert as soon as possible, but not later than two
court days after making the finding.

(e) (1)  begin delete No end delete begin insert A end insert person who has been placed under conservatorship
by a court, pursuant to Section 5350 or the law of any other state
or the United States, because the person is gravely disabled as a
result of a mental disorder or impairment by chronic alcoholism,
shall begin insert not end insert purchase or receive, or attempt to purchase or receive, or
shall begin insert not end insert have in his or her possession, custody, or control, any
firearm or any other deadly weapon while under the
conservatorship if, at the time the conservatorship was ordered or
thereafter, the court begin delete which end delete begin insert that end insert imposed the conservatorship found
that possession of a firearm or any other deadly weapon by the
person would present a danger to the safety of the person or to
others. Upon placing any person under begin delete conservatorship, end delete
begin insert conservatorship end insert and prohibiting firearm or any other deadly
weapon possession by the person, the court shall notify the person
of this prohibition.

(2) The court shall notify the Department of Justice of the court
order placing the person under conservatorship and prohibiting
firearm or any other deadly weapon possession by the person as
described in paragraph (1) as soon as possible, but not later than
two court days after placing the person under conservatorship. The
notice shall include the date the conservatorship was imposed and
the date the conservatorship is to be terminated. If the
conservatorship is subsequently terminated before the date listed
in the notice to the Department of Justice or the court subsequently
finds that possession of a firearm or any other deadly weapon by
the person would no longer present a danger to the safety of the
person or others, the court shall notify the Department of Justice
as soon as possible, but not later than two court days after
terminating the conservatorship.

(3) All information provided to the Department of Justice
pursuant to paragraph (2) shall be kept confidential, separate, and
apart from all other records maintained by the Department of
Justice, and shall be used only to determine eligibility to purchase
or possess firearms or other deadly weapons. Any person who
knowingly furnishes that information for any other purpose is
guilty of a misdemeanor. All begin delete the end delete information concerning any person
shall be destroyed upon receipt by the Department of Justice of
notice of the termination of conservatorship as to that person
pursuant to paragraph (2).

(f) (1)  begin delete No end delete begin insert A end insert person who has been (A) taken into custody as
provided in Section 5150 because that person is a danger to himself,
herself, or to others, (B) assessed within the meaning of Section
5151, and (C) admitted to a designated facility within the meaning
of Sections 5151 and 5152 because that person is a danger to
himself, herself, or others, shall begin insert not end insert own, possess, control, receive,
or purchase, or attempt to own, possess, control, receive, or
purchase any firearm for a period of five years after the person is
released from the facility. A person described in the preceding
sentence, however, may own, possess, control, receive, or purchase,
or attempt to own, possess, control, receive, or purchase any
firearm if the superior court has, pursuant to paragraph (5), found
that the people of the State of California have not met their burden
pursuant to paragraph (6).

(2) (A) For each person subject to this subdivision, the facility
shall, within 24 hours of the time of admission, submit a report to
the Department of Justice, on a form prescribed by the Department
of Justice, containing information that includes, but is not limited
to, the identity of the person and the legal grounds upon which the
person was admitted to the begin delete facility. end delete

begin delete Any end delete begin insert facility. A end insert report submitted pursuant to this paragraph shall
be confidential, except for purposes of the court proceedings
described in this subdivision and for determining the eligibility of
the person to own, possess, control, receive, or purchase a firearm.

(B) Commencing July 1, 2012, facilities shall submit reports
pursuant to this paragraph exclusively by electronic means, in a
manner prescribed by the Department of Justice.

(3) Prior to, or concurrent with, the discharge, the facility shall
inform a person subject to this subdivision that he or she is
prohibited from owning, possessing, controlling, receiving, or
purchasing any firearm for a period of five years. Simultaneously,
the facility shall inform the person that he or she may request a
hearing from a court, as provided in this subdivision, for an order
permitting the person to own, possess, control, receive, or purchase
a firearm. The facility shall provide the person with a form for a
request for a hearing. The Department of Justice shall prescribe
the form. Where the person requests a hearing at the time of
discharge, the facility shall forward the form to the superior court
unless the person states that he or she will submit the form to the
superior court.

(4) The Department of Justice shall provide the form upon
request to any person described in paragraph (1). The Department
of Justice shall also provide the form to the superior court in each
county. A person described in paragraph (1) may make a single
request for a hearing at any time during the five-year period. The
request for hearing shall be made on the form prescribed by the
department or in a document that includes equivalent language.

(5) Any person who is subject to paragraph (1) who has
requested a hearing from the superior court of his or her county
of residence for an order that he or she may own, possess, control,
receive, or purchase firearms shall be given a hearing. The clerk
of the court shall set a hearing date and notify the person, the
Department of Justice, and the district attorney. The people of the
State of California shall be the plaintiff in the proceeding and shall
be represented by the district attorney. Upon motion of the district
attorney, or on its own motion, the superior court may transfer the
hearing to the county in which the person resided at the time of
his or her detention, the county in which the person was detained,
or the county in which the person was evaluated or treated. Within
seven days after the request for a hearing, the Department of Justice
shall file copies of the reports described in this section with the
superior court. The reports shall be disclosed upon request to the
person and to the district attorney. The court shall set the hearing
within 30 days of receipt of the request for a hearing. Upon
showing good cause, the district attorney shall be entitled to a
continuance not to exceed 14 days after the district attorney was
notified of the hearing date by the clerk of the court. If additional
continuances are granted, the total length of time for continuances
shall not exceed 60 days. The district attorney may notify the
county mental health director of the hearing who shall provide
information about the detention of the person that may be relevant
to the court and shall file that information with the superior court.
That information shall be disclosed to the person and to the district
attorney. The court, upon motion of the person subject to paragraph
(1) establishing that confidential information is likely to be
discussed during the hearing that would cause harm to the person,
shall conduct the hearing in camera with only the relevant parties
present, unless the court finds that the public interest would be
better served by conducting the hearing in public. Notwithstanding
any other law, declarations, police reports, including criminal
history information, and any other material and relevant evidence
that is not excluded under Section 352 of the Evidence Code shall
be admissible at the hearing under this section.

(6) The people shall bear the burden of showing by a
preponderance of the evidence that the person would not be likely
to use firearms in a safe and lawful manner.

(7) If the court finds at the hearing set forth in paragraph (5)
that the people have not met their burden as set forth in paragraph
(6), the court shall order that the person shall not be subject to the
five-year prohibition in this section on the ownership, control,
receipt, possession, or purchase of firearms, and that person shall
comply with the procedure described in Chapter 2 (commencing
with Section 33850) of Division 11 of Title 4 of Part 6 of the Penal
Code for the return of any firearms. A copy of the order shall be
submitted to the Department of Justice. Upon receipt of the order,
the Department of Justice shall delete any reference to the
prohibition against firearms from the person’s state mental health
firearms prohibition system information.

(8) Where the district attorney declines or fails to go forward
in the hearing, the court shall order that the person shall not be
subject to the five-year prohibition required by this subdivision
on the ownership, control, receipt, possession, or purchase of
firearms. A copy of the order shall be submitted to the Department
of Justice. Upon receipt of the order, the Department of Justice
shall, within 15 days, delete any reference to the prohibition against
firearms from the person’s state mental health firearms prohibition
system information, and that person shall comply with the
procedure described in Chapter 2 (commencing with Section
33850) of Division 11 of Title 4 of Part 6 of the Penal Code for
the return of any firearms.

(9) Nothing in this subdivision shall prohibit the use of reports
filed pursuant to this section to determine the eligibility of persons
to own, possess, control, receive, or purchase a firearm if the person
is the subject of a criminal investigation, a part of which involves
the ownership, possession, control, receipt, or purchase of a
firearm.

(g) (1)  begin delete No end delete begin insert A end insert person who has been certified for intensive
treatment under Section 5250, 5260, or 5270.15 shall begin insert not end insert own,
possess, control, receive, or purchase, or attempt to own, possess,
control, receive, or purchase, any firearm for a period of five begin delete years. end delete

begin delete Any end delete begin insert years. A end insert person who meets the criteria contained in
subdivision (e) or (f) who is released from intensive treatment shall
nevertheless, if applicable, remain subject to the prohibition
contained in subdivision (e) or (f).

(2) (A) For each person certified for intensive treatment under
paragraph (1), the facility shall, within 24 hours of the certification,
submit a report to the Department of Justice, on a form prescribed
by the department, containing information regarding the person,
including, but not limited to, the legal identity of the person and
the legal grounds upon which the person was certified. Any report
submitted pursuant to this paragraph shall only be used for begin delete the end delete
purposes specified in paragraph (2) of subdivision (f).

(B) Commencing July 1, 2012, facilities shall submit reports
pursuant to this paragraph exclusively by electronic means, in a
manner prescribed by the Department of Justice.

(3) Prior to, or concurrent with, the discharge of each person
certified for intensive treatment under paragraph (1), the facility
shall inform the person of that information specified in paragraph
(3) of subdivision (f).

(4)  begin delete Any end delete begin insert A end insert person who is subject to paragraph (1) may petition
the superior court of his or her county of residence for an order
that he or she may own, possess, control, receive, or purchase
firearms. At the time the petition is filed, the clerk of the court
shall set a hearing date and notify the person, the Department of
Justice, and the district attorney. The people of the State of
California shall be the respondent in the proceeding and shall be
represented by the district attorney. Upon motion of the district
attorney, or on its own motion, the superior court may transfer the
petition to the county in which the person resided at the time of
his or her detention, the county in which the person was detained,
or the county in which the person was evaluated or treated. Within
seven days after receiving notice of the petition, the Department
of Justice shall file copies of the reports described in this section
with the superior court. The reports shall be disclosed upon request
to the person and to the district attorney. The district attorney shall
be entitled to a continuance of the hearing to a date of not less than
14 days after the district attorney was notified of the hearing date
by the clerk of the court. The district attorney may notify the county
mental health director of the petition, and the county mental health
director shall provide information about the detention of the person
that may be relevant to the court and shall file that information
with the superior court. That information shall be disclosed to the
person and to the district attorney. The court, upon motion of the
person subject to paragraph (1) establishing that confidential
information is likely to be discussed during the hearing that would
cause harm to the person, shall conduct the hearing in camera with
only the relevant parties present, unless the court finds that the
public interest would be better served by conducting the hearing
in public. Notwithstanding any other begin delete provision of end delete law, any
declaration, police reports, including criminal history information,
and any other material and relevant evidence that is not excluded
under Section 352 of the Evidence Code, shall be admissible at
the hearing under this section. If the court finds by a preponderance
of the evidence that the person would be likely to use firearms in
a safe and lawful manner, the court may order that the person may
own, control, receive, possess, or purchase firearms, and that person
shall comply with the procedure described in Chapter 2
(commencing with Section 33850) of Division 11 of Title 4 of Part
6 of the Penal Code for the return of any firearms. A copy of the
order shall be submitted to the Department of Justice. Upon receipt
of the order, the Department of Justice shall delete any reference
to the prohibition against firearms from the person’s state mental
health firearms prohibition system information.

(h) (1) For all persons identified in subdivisions (f) and (g),
facilities shall report to the Department of Justice as specified in
those subdivisions, except facilities shall not report persons under
subdivision (g) if the same persons previously have been reported
under subdivision (f).

(2) Additionally, all facilities shall report to the Department of
Justice upon the discharge of persons begin delete from end delete begin insert for end insert whom reports have
been submitted pursuant to subdivision (f) or (g). However, a report
shall not be filed for persons who are discharged within 31 days
after the date of admission.

(i) Every person who owns or possesses or has under his or her
custody or control, or purchases or receives, or attempts to purchase
or receive, any firearm or any other deadly weapon in violation of
this section shall be punished by imprisonment pursuant to
subdivision (h) of Section 1170 of the Penal Code or in a county
jail for not more than one year.

(j) “Deadly weapon,” as used in this section, has the meaning
prescribed by Section 8100.

(k) Any notice or report required to be submitted to the
Department of Justice pursuant to this section shall be submitted
in an electronic format, in a manner prescribed by the Department
of Justice.

SEC. 191.  

Section 11400 of the Welfare and Institutions Code
is amended to read:

11400.  

For begin delete the end delete purposes of this article, the following definitions
shall apply:

(a) “Aid to Families with Dependent Children-Foster Care
(AFDC-FC)” means the aid provided on behalf of needy children
in foster care under the terms of this division.

(b) “Case plan” means a written document that, at a minimum,
specifies the type of home in which the child shall be placed, the
safety of that home, and the appropriateness of that home to meet
the child’s needs. It shall also include the agency’s plan for
ensuring that the child receive proper care and protection in a safe
environment, and shall set forth the appropriate services to be
provided to the child, the child’s family, and the foster parents, in
order to meet the child’s needs while in foster care, and to reunify
the child with the child’s family. In addition, the plan shall specify
the services that will be provided or steps that will be taken to
facilitate an alternate permanent plan if reunification is not possible.

(c) “Certified family home” means a family residence certified
by a licensed foster family agency and issued a certificate of
approval by that agency as meeting licensing standards, and used
only by that foster family agency for placements.

(d) “Family home” means the family residence of a licensee in
which 24-hour care and supervision are provided for children.

(e) “Small family home” means any residential facility, in the
licensee’s family residence, which provides 24-hour care for six
or fewer foster children who have mental disorders or
developmental or physical disabilities and who require special care
and supervision as a result of their disabilities.

(f) “Foster care” means the 24-hour out-of-home care provided
to children whose own families are unable or unwilling to care for
them, and who are in need of temporary or long-term substitute
parenting.

(g) “Foster family agency” means any individual or organization
engaged in the recruiting, certifying, and training of, and providing
professional support to, foster parents, or in finding homes or other
places for placement of children for temporary or permanent care
who require that level of care as an alternative to a group home.
Private foster family agencies shall be organized and operated on
a nonprofit basis.

(h) “Group home” means a nondetention privately operated
residential home, organized and operated on a nonprofit basis only,
of any capacity, or a nondetention licensed residential care home
operated by the County of San Mateo with a capacity of up to 25
beds, that accepts children in need of care and supervision in a
group home, as defined by paragraph (13) of subdivision (a) of
Section 1502 of the Health and Safety Code.

(i) “Periodic review” means review of a child’s status by the
juvenile court or by an administrative review panel, that shall
include a consideration of the safety of the child, a determination
of the continuing need for placement in foster care, evaluation of
the goals for the placement and the progress toward meeting these
goals, and development of a target date for the child’s return home
or establishment of alternative permanent placement.

(j) “Permanency planning hearing” means a hearing conducted
by the juvenile court in which the child’s future status, including
whether the child shall be returned home or another permanent
plan shall be developed, is determined.

(k) “Placement and care” refers to the responsibility for the
welfare of a child vested in an agency or organization by virtue of
the agency or organization having (1) been delegated care, custody,
and control of a child by the juvenile court, (2) taken responsibility,
pursuant to a relinquishment or termination of parental rights on
a child, (3) taken the responsibility of supervising a child detained
by the juvenile court pursuant to Section 319 or 636, or (4) signed
a voluntary placement agreement for the child’s placement; or to
the responsibility designated to an individual by virtue of his or
her being appointed the child’s legal guardian.

(l) “Preplacement preventive services” means services that are
designed to help children remain with their families by preventing
or eliminating the need for removal.

(m) “Relative” means an adult who is related to the child by
blood, adoption, or affinity within the fifth degree of kinship,
including stepparents, stepsiblings, and all relatives whose status
is preceded by the words “great,” “great-great,” or “grand” or the
spouse of any of these persons even if the marriage was terminated
by death or dissolution.

(n) “Nonrelative extended family member” means an adult
caregiver who has an established familial or mentoring relationship
with the child, as described in Section 362.7.

(o) “Voluntary placement” means an out-of-home placement
of a child by (1) the county welfare department, probation
department, or Indian tribe that has entered into an agreement
pursuant to Section 10553.1, after the parents or guardians have
requested the assistance of the county welfare department and have
signed a voluntary placement agreement; or (2) the county welfare
department licensed public or private adoption agency, or the
department acting as an adoption agency, after the parents have
requested the assistance of either the county welfare department,
the licensed public or private adoption agency, or the department
acting as an adoption agency for the purpose of adoption planning,
and have signed a voluntary placement agreement.

(p) “Voluntary placement agreement” means a written agreement
between either the county welfare department, probation
department, or Indian tribe that has entered into an agreement
pursuant to Section 10553.1, licensed public or private adoption
agency, or the department acting as an adoption agency, and the
parents or guardians of a child that specifies, at a minimum, the
following:

(1) The legal status of the child.

(2) The rights and obligations of the parents or guardians, the
child, and the agency in which the child is placed.

(q) “Original placement date” means the most recent date on
which the court detained a child and ordered an agency to be
responsible for supervising the child or the date on which an agency
assumed responsibility for a child due to termination of parental
rights, relinquishment, or voluntary placement.

(r) (1) “Transitional housing placement provider” means an
organization licensed by the State Department of Social Services
pursuant to Section 1559.110 of the Health and Safety Code, to
provide transitional housing to foster children at least 16 years of
age and not more than 18 years of age, and nonminor dependents,
as defined in subdivision (v). A transitional housing placement
provider shall be privately operated and organized on a nonprofit
basis.

(2) Prior to licensure, a provider shall obtain certification from
the applicable county, in accordance with Section 16522.1.

(s) “Transitional Housing Program-Plus” means a provider
certified by the applicable county, in accordance with subdivision
(c) of Section 16522, to provide transitional housing services to
former foster youth who have exited the foster care system on or
after their 18th birthday.

(t) “Whole family foster home” means a new or existing family
home, approved relative caregiver or nonrelative extended family
member’s home, the home of a nonrelated legal guardian whose
guardianship was established pursuant to Section 360 or 366.26,
certified family home, or a host family home placement of a
transitional housing placement provider, that provides foster care
for a minor or nonminor dependent parent and his or her child,
and is specifically recruited and trained to assist the minor or
nonminor dependent parent in developing the skills necessary to
provide a safe, stable, and permanent home for his or her child.
The child of the minor or nonminor dependent parent need not be
the subject of a petition filed pursuant to Section 300 to qualify
for placement in a whole family foster home.

(u) “Mutual agreement” means any of the following:

(1) A written voluntary agreement of consent for continued
placement and care in a supervised setting between a minor or, on
and after January 1, 2012, a nonminor dependent, and the county
welfare services or probation department or tribal agency
responsible for the foster care placement, that documents the
nonminor’s continued willingness to remain in supervised
out-of-home placement under the placement and care of the
responsible county, tribe, consortium of tribes, or tribal
organization that has entered into an agreement with the state
pursuant to Section 10553.1, remain under the jurisdiction of the
juvenile court as a nonminor dependent, and report any change of
circumstances relevant to continued eligibility for foster care
payments, and that documents the nonminor’s and social worker’s
or probation officer’s agreement to work together to facilitate
implementation of the mutually developed supervised placement
agreement and transitional independent living case plan.

(2) An agreement, as described in paragraph (1), between a
nonminor former dependent or ward in receipt of Kin-GAP
payments under Article 4.5 (commencing with Section 11360) or
Article 4.7 (commencing with Section 11385), and the agency
responsible for the Kin-GAP benefits, provided that the nonminor
former dependent or ward satisfies the conditions described in
Section 11403.01, or one or more of the conditions described in
paragraphs (1) to (5), inclusive, of subdivision (b) of Section
11403. For purposes of this paragraph and paragraph (3),
“nonminor former dependent or ward” has the same meaning as
described in subdivision (aa).

(3) An agreement, as described in paragraph (1), between a
nonminor former dependent or ward in receipt of AFDC-FC
payments under subdivision (e) or (f) of Section 11405 and the
agency responsible for the AFDC-FC benefits, provided that the
nonminor former dependent or ward described in subdivision (e)
of Section 11405 satisfies one or more of the conditions described
in paragraphs (1) to (5), inclusive, of subdivision (b) of Section
11403, and the nonminor described in subdivision (f) of Section
11405 satisfies the secondary school or equivalent training or
certificate program conditions described in that subdivision.

(v) “Nonminor dependent” means, on and after January 1, 2012,
a foster child, as described in Section 675(8)(B) of Title 42 of the
United States Code under the federal Social Security Act who is
a current dependent child or ward of the juvenile court, or begin insert who end insert is
a nonminor under the transition jurisdiction of the juvenile court,
as described in Section 450, begin insert and end insert who satisfies all of the following
criteria:

(1) He or she has attained 18 years of age while under an order
of foster care placement by the juvenile court, and is not more than
19 years of age on or after January 1, 2012, not more than 20 years
of age on or after January 1, 2013, or not more than 21 years of
age on or after January 1, 2014, and as described in Section
10103.5.

(2) He or she is in foster care under the placement and care
responsibility of the county welfare department, county probation
department, Indian tribe, consortium of tribes, or tribal organization
that entered into an agreement pursuant to Section 10553.1.

(3) He or she has a transitional independent living case plan
pursuant to Section 475(8) of the federal Social Security Act (42
U.S.C. Sec. 675(8)), as contained in the federal Fostering
Connections to Success and Increasing Adoptions Act of 2008
(Public Law 110-351), as described in Section 11403.

(w) “Supervised independent living placement” means, on and
after January 1, 2012, an independent supervised setting, as
specified in a nonminor dependent’s transitional independent living
case plan, in which the youth is living independently, pursuant to
Section 472(c)(2) of the Social Security Act (42 U.S.C. Sec.
672(c)(2)).

(x) “Supervised independent living setting,” pursuant to Section
472(c)(2) of the federal Social Security Act (42 U.S.C. Sec.
672(c)(2)), includes both a supervised independent living
placement, as defined in subdivision (w), and a residential housing
unit certified by the transitional housing placement provider
operating a Transitional Housing Placement-Plus Foster Care
program, as described in paragraph (2) of subdivision (a) of Section
16522.1.

(y) “Transitional independent living case plan” means, on or
after January 1, 2012, a child’s case plan submitted for the last
review hearing held before he or she reaches 18 years of age or
the nonminor dependent’s case plan, updated every six months,
that describes the goals and objectives of how the nonminor will
make progress in the transition to living independently and assume
incremental responsibility for adult decisionmaking, the
collaborative efforts between the nonminor and the social worker,
probation officer, or Indian tribal placing entity and the supportive
services as described in the transitional independent living plan
(TILP) to ensure active and meaningful participation in one or
more of the eligibility criteria described in paragraphs (1) to (5),
inclusive, of subdivision (b) of Section 11403, the nonminor’s
appropriate supervised placement setting, and the nonminor’s
permanent plan for transition to living independently, which
includes maintaining or obtaining permanent connections to caring
and committed adults, as set forth in paragraph (16) of subdivision
(f) of Section 16501.1.

(z) “Voluntary reentry agreement” means a written voluntary
agreement between a former dependent child or ward or a former
nonminor dependent, who has had juvenile court jurisdiction
terminated pursuant to Section 391, 452, or 607.2, and the county
welfare or probation department or tribal placing entity that
documents the nonminor’s desire and willingness to reenter foster
care, to be placed in a supervised setting under the placement and
care responsibility of the placing agency, the nonminor’s desire,
willingness, and ability to immediately participate in one or more
of the conditions of paragraphs (1) to (5), inclusive, of subdivision
(b) of Section 11403, the nonminor’s agreement to work
collaboratively with the placing agency to develop his or her
transitional independent living case plan within 60 days of reentry,
the nonminor’s agreement to report any changes of circumstances
relevant to continued eligibility for foster care payments, and (1)
the nonminor’s agreement to participate in the filing of a petition
for juvenile court jurisdiction as a nonminor dependent pursuant
to subdivision (e) of Section 388 within 15 judicial days of the
signing of the agreement and the placing agency’s efforts and
supportive services to assist the nonminor in the reentry process,
or (2) if the nonminor meets the definition of a nonminor former
dependent or ward, as described in subdivision (aa), the nonminor’s
agreement to return to the care and support of his or her former
juvenile court-appointed guardian and meet the eligibility criteria
for AFDC-FC pursuant to subdivision (e) of Section 11405.

(aa) “Nonminor former dependent or ward” means, on and after
January 1, 2012, either of the following:

(1) A nonminor who reached 18 years of age while subject to
an order for foster care placement, and for whom dependency,
delinquency, or transition jurisdiction has been terminated, and
who is still under the general jurisdiction of the court.

(2) A nonminor who is over 18 years of age and, while a minor,
was a dependent child or ward of the juvenile court when the
guardianship was established pursuant to Section 360 or 366.26,
or subdivision (d), of Section 728 and the juvenile court
dependency or wardship was dismissed following the establishment
of the guardianship.

(ab) “Runaway and homeless youth shelter” means a type of
group home, as defined in paragraph (14) of subdivision (a) of
Section 1502 of the Health and Safety Code, that is not an eligible
placement option under Sections 319, 361.2, 450, and 727, and
that is not eligible for AFDC-FC funding pursuant to subdivision
(c) of Section 11402 or Section 11462.

(ac) “Transition dependent” is a minor between 17 years and
five months and 18 years of age who is subject to the court’s
transition jurisdiction under Section 450.

SEC. 192.  

Section 11450.025 of the Welfare and Institutions
Code is amended to read:

11450.025.  

(a) Notwithstanding any other law, effective on
March 1, 2014, the maximum aid payments in effect on July 1,
2012, as specified in subdivision (b) of Section 11450.02, shall be
increased by 5 percent.

(b) Commencing in 2014 and annually thereafter, on or before
January 10 and on or before May 14, the Director of Finance shall
do all of the following:

(1) Estimate the amount of growth revenues pursuant to
subdivision (f) of Section 17606.10 that will be deposited in the
Child Poverty and Family Supplemental Support Subaccount of
the Local Revenue Fund for the current fiscal year and the
following fiscal year and the amounts in the subaccount carried
over from prior fiscal years.

(2) For the current fiscal year and the following fiscal year,
determine the total cost of providing the increase described in
subdivision (a), as well as any other increase in the maximum aid
payments subsequently provided only under this section, after
adjusting for updated projections of CalWORKs costs associated
with caseload changes, as reflected in the local assistance
subvention estimates prepared by the State Department of Social
Services and released with the annual Governor’s Budget and
subsequent May Revision update.

(3) If the amount estimated in paragraph (1) plus the amount
projected to be deposited for the current fiscal year into the Child
Poverty and Family Supplemental Support Subaccount pursuant
to begin delete subparagraph end delete begin insert paragraph end insert (3) of subdivision (e) of Section
17600.15 is greater than the amount determined in paragraph (2),
the difference shall be used to calculate the percentage increase to
the CalWORKs maximum aid payment standards that could be
fully funded on an ongoing basis beginning the following fiscal
year.

(4) If the amount estimated in paragraph (1) plus the amount
projected to be deposited for the current fiscal year into the Child
Poverty and Family Supplemental Support Subaccount pursuant
to begin delete subparagraph end delete begin insert paragraph end insert (3) of subdivision (e) of Section
17600.15 is equal to or less than the amount determined in
paragraph (2), no additional increase to the CalWORKs maximum
aid payment standards shall be provided in the following fiscal
year in accordance with this section.

(5) (A) Commencing with the 2014-15 fiscal year and for all
fiscal years thereafter, if changes to the estimated amounts
determined in paragraphs (1) or (2), or both, as of the May
Revision, are enacted as part of the final budget, the Director of
Finance shall repeat, using the same methodology used in the May
Revision, the calculations described in paragraphs (3) and (4) using
the revenue projections and grant costs assumed in the enacted
budget.

(B) If a calculation is required pursuant to subparagraph (A),
the Department of Finance shall report the result of this calculation
to the appropriate policy and fiscal committees of the Legislature
upon enactment of the Budget Act.

(c) An increase in maximum aid payments calculated pursuant
to paragraph (3) of subdivision begin delete (b), end delete begin insert (b) end insert or pursuant to paragraph
(5) of subdivision (b) begin insert , end insert if applicable, shall become effective on
October 1 of the following fiscal year.

(d) (1) An increase in maximum aid payments provided in
accordance with this section shall be funded with growth revenues
from the Child Poverty and Family Supplemental Support
Subaccount in accordance with paragraph (3) of subdivision (e)
of Section 17600.15 and subdivision (f) of Section 17606.10, to
the extent funds are available in that subaccount.

(2) If funds received by the Child Poverty and Family
Supplemental Support Subaccount in a particular fiscal year are
insufficient to fully fund any increases to maximum aid payments
made pursuant to this section, the remaining cost for that fiscal
year will be addressed through existing provisional authority
included in the annual Budget Act. Additional grant increases shall
not be provided until and unless the ongoing cumulative costs of
all prior grant increases provided pursuant to this section are fully
funded by the Child Poverty and Family Supplemental Support
Subaccount.

(e) Notwithstanding Section 15200, counties shall not be
required to contribute a share of cost to cover the costs of increases
to maximum aid payments made pursuant to this section.

SEC. 193.  

Section 14005.30 of the Welfare and Institutions
Code is amended to read:

14005.30.  

(a) Medi-Cal benefits under this chapter shall be
provided to individuals eligible for services under Section 1396u-1
of Title 42 of the United States Code.

(b) (1) When determining eligibility under this section, an
applicant’s or beneficiary’s income and resources shall be
determined, counted, and valued in accordance with the
requirements of Section 1396a(e)(14) of Title 42 of the United
States Code, as added by the ACA.

(2) When determining eligibility under this section, an
applicant’s or beneficiary’s assets shall not be considered and
deprivation shall not be a requirement for eligibility.

(c) For purposes of calculating income under this section during
any calendar year, increases in social security benefit payments
under Title II of the federal Social Security Act (42 U.S.C. Sec.
401 et seq.) arising from cost-of-living adjustments shall be
disregarded commencing in the month that these social security
benefit payments are increased by the cost-of-living adjustment
through the month before the month in which a change in the
federal poverty level requires the department to modify the income
disregard pursuant to begin insert this end insert subdivision begin delete (c) end delete and in which new income
limits for the program established by this section are adopted by
the department.

(d) The MAGI-based income eligibility standard applied under
this section shall conform with the maintenance of effort
requirements of Sections 1396a(e)(14) and 1396a(gg) of Title 42
of the United States Code, as added by the ACA.

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

(1)  “ACA” means the federal Patient Protection and Affordable
Care Act (Public Law 111-148), as originally enacted and as
amended by the federal Health Care and Education Reconciliation
Act of 2010 (Public Law 111-152) and any subsequent
amendments.

(2) “MAGI-based income” means income calculated using the
financial methodologies described in Section 1396a(e)(14) of Title
42 of the United States Code, as added by the federal Patient
Protection and Affordable Care Act (Public Law 111-148) and as
amended by the federal Health Care and Education Reconciliation
Act of 2010 (Public Law 111-152) and any subsequent
amendments.

(f) Notwithstanding Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code,
the department may implement, interpret, or make specific this
section by means of all-county letters, plan letters, plan or provider
bulletins, or similar instructions until the time any necessary
regulations are adopted. The department shall adopt regulations
by July 1, 2017, in accordance with the requirements of Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of
Title 2 of the Government Code. Beginning six months after the
effective date of this section, and notwithstanding Section 10231.5
of the Government Code, the department shall provide a status
report to the Legislature on a semiannual basis, in compliance with
Section 9795 of the Government Code, until regulations have been
adopted.

(g) This section shall be implemented only if and to the extent
that federal financial participation is available and any necessary
federal approvals have been obtained.

(h) This section shall become operative on January 1, 2014.

SEC. 194.  

Section 14005.65 of the Welfare and Institutions
Code is amended to read:

14005.65.  

(a) The department shall file a state plan amendment
to exercise the federal option under subdivision (h) of Section
435.603 of Title 42 of the Code of Federal Regulations to allow
beneficiaries to use projected annual household income and to
allow applicants and beneficiaries to use reasonably predictable
annual income as set forth in this section when determining their
eligibility for Medi-Cal benefits.

(b) (1) Beneficiaries shall be allowed to use projected annual
household income to establish eligibility for Medi-Cal benefits for
the remainder of the calendar year in which that projected income
is used to determine eligibility if the current monthly income would
render the beneficiary ineligible due to an increase in income.

(2) If projected annual household income has been used by the
beneficiary, the department shall redetermine the beneficiary’s
Medi-Cal benefits at the end of the calendar year.

(c) (1) Applicants and beneficiaries shall be allowed to use
reasonably predictable annual income to establish eligibility for
Medi-Cal benefits.

(2) Before being allowed to use reasonably predictable annual
income begin delete pursuant to establishing end delete begin insert to establish end insert eligibility for Medi-Cal
benefits, the applicant or beneficiary shall provide the department
with adequate evidence of the predicted change, including, but not
limited to, a signed contract for employment, clear proof of a
history of predictable fluctuations in income, or other clear indicia
of such future changes in income.

(d) This section shall be implemented only if and to the extent
that federal financial participation is available and any necessary
federal approvals have been obtained.

(e) This section shall become operative on January 1, 2014.

SEC. 195.  

Section 14007.1 of the Welfare and Institutions
Code is amended to read:

14007.1.  

(a) The department shall electronically verify an
individual’s state residency using information from the federal
Supplemental Nutrition Assistance Program, the CalWORKs
program, the California Health Benefit Exchange, the Franchise
Tax Board, the Department of Motor Vehicles, the Employment
Development Department, or the electronic service established in
accordance with Section 435.949 of Title 42 of the Code of Federal
Regulations, and other available sources. If the department is
unable to electronically verify an individual’s state residency using
these electronic data sources, an individual shall verify state
residency as set forth in this section.

(b) If the individual is 21 years of age or older, is capable of
indicating intent, and is not residing in an institution, state
residency is established when the individual provides one of the
following:

(1) A recent California rent or mortgage receipt or utility bill
in the individual’s name.

(2) A current California motor vehicle driver’s license or
California Identification Card issued by the Department of Motor
Vehicles in the individual’s name.

(3) A current California motor vehicle registration in the
individual’s name.

(4) A document showing that the individual is employed in this
state or is seeking employment in the state.

(5) A document showing that the individual has registered with
a public or private employment service in this state.

(6) Evidence that the individual has enrolled his or her children
in a school in this state.

(7) Evidence that the individual is receiving public assistance
in this state. For purposes of this paragraph, “public assistance”
shall not include unemployment insurance benefits.

(8) Evidence of registration to vote in this state.

(9) A declaration by the individual under penalty of perjury that
he or she intends to reside in this state and does not have a fixed
address and cannot provide any of the documents identified in
paragraphs (1) to (8), inclusive.

(10) A declaration by the individual under penalty of perjury
that he or she has entered the state with a job commitment or is
seeking employment in the state and cannot provide any of the
documents identified in paragraphs (1) to (8), inclusive.

(c) If the individual is 21 years of age or older, is incapable of
indicating intent, and is not residing in an institution, state
residency is established when the parent, legal guardian of the
individual, or any other person with knowledge declares, under
penalty of perjury, that the individual is residing in this state.

(d) If the individual is 21 years of age or older, is residing in an
institution, and became incapable of indicating intent before
reaching 21 years of age, state residency is established by any of
the following:

(1) When the parent applying for Medi-Cal on the individual’s
behalf (A) declares under penalty of perjury that the individual’s
parents reside in separate states and (B) establishes that he or she
(the parent) is a resident of this state in accordance with the
requirements of this section.

(2) When the legal guardian applying for Medi-Cal on the
individual’s behalf (A) declares under penalty of perjury that
parental rights have been terminated and (B) establishes that he
or she (the legal guardian) is a resident of this state in accordance
with the requirements of this section.

(3) When the parent or parents applying for Medi-Cal on the
individual’s behalf establishes in accordance with the requirements
of this section that he, she, or they (the parent or parents), were a
resident of this state at the time the individual was placed in the
institution.

(4) When the legal guardian applying for Medi-Cal on the
individual’s behalf (A) declares under penalty of perjury that
parental rights have been terminated and (B) establishes in
accordance with the requirements of this section that he or she (the
legal guardian) was a resident of this state at the time the individual
was placed in the institution.

(5) When the parent, or parents, applying for Medi-Cal on the
individual’s behalf (A) provides a document from the institution
that demonstrates that the individual is institutionalized in this
state and (B) establishes in accordance with the requirements of
this section that he, she, or they (the parent or parents), are a
resident of this state.

(6) When the legal guardian applying for Medi-Cal on the
individual’s behalf (A) provides a document from the institution
that demonstrates that the individual is institutionalized in this
state, (B) declares under penalty of perjury that parental rights
have been terminated, and (C) establishes in accordance with the
requirements of this section that he or she (the legal guardian) is
a resident of this state.

(7) When the individual or party applying for Medi-Cal on the
individual’s behalf (A) provides a document from the institution
that demonstrates that the individual is institutionalized in this
state, (B) declares under penalty of perjury that the individual has
been abandoned by his or her parents and does not have a legal
guardian, and (C) establishes that he or she (the individual or party
applying for Medi-Cal on the individual’s behalf) is a resident of
this state in accordance with the requirements of this section.

(e) Except when another state has placed the individual in the
institution, if the individual is 21 years of age or older, is residing
in an institution, and became incapable of indicating intent on or
after reaching 21 years of age, state residency is established when
the person filing the application on the individual’s behalf provides
a document from the institution that demonstrates that the
individual is institutionalized in this state.

(f) If the individual is 21 years of age or older, is capable of
indicating intent, and is residing in an institution, state residency
is established when the individual (1) provides a document from
the institution that demonstrates that the individual is
institutionalized in this state, and (2) declares under penalty of
perjury that he or she intends to reside in this state.

(g) If the individual is under 21 years of age, is married or
emancipated from his or her parents, is capable of indicating intent,
and is not residing in an institution, state residency is established
in accordance with subdivision (b).

(h) If the individual is under 21 years of age, is not living in an
institution, and is not described in subdivision (g), state residency
is established by any of the following:

(1) When the individual resides with his or her parent or parents
and the parent or parents establish that he, she, or they (the parent
or parents) begin delete , as the case may be, end delete are a resident of this state in
accordance with the requirements of subdivision (b).

(2) When the individual resides with a caretaker relative begin insert or
caretaker relatives end insert and the caretaker relative begin delete establishes end delete begin insert or
caretaker relatives establish end insert that he, she, or they (the caretaker
relative or caretaker relatives), are a resident of this state in
accordance with the requirements of subdivision (b).

(3) When the person with whom the individual is residing is
not the individual’s parent or caretaker relative and he or she (A)
declares under penalty of perjury that the individual is residing
with him or her, and (B) establishes that he or she (the person with
whom the individual is residing) is a resident of this state in
accordance with the requirements of subdivision (b).

(4) When the individual does not reside with his or her parents
or with a caretaker relative and he or she declares under penalty
of perjury that he or she is living in this state.

(i) If the individual is under 21 years of age, is institutionalized,
and is not married or emancipated, state residency is established
in accordance with paragraph (3), (4), (5), (6), or (7) of subdivision
(d).

(j) A denial of a determination of residency may be appealed
in the same manner as any other denial of eligibility. The
administrative law judge shall receive any proof of residency
offered by the individual and may inquire into any facts relevant
to the question of residency. A determination of residency shall
not be granted unless a preponderance of the credible evidence
supports that the individual is a resident of this state under Section
14007.15.

(k) To the extent otherwise required by Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code, the department shall adopt emergency
regulations implementing this section no later than July 1, 2015.
The department may thereafter readopt the emergency regulations
pursuant to that chapter. The adoption and readoption, by the
department, of regulations implementing this section shall be
deemed to be an emergency and necessary to avoid serious harm
to the public peace, health, safety, or general welfare for purposes
of Sections 11346.1 and 11349.6 of the Government Code, and
the department is hereby exempted from the requirement that it
describe facts showing the need for immediate action and from
review by the Office of Administrative Law.

(l) For purposes of this section, the definitions in subdivision
(i) of Section 14007.15 shall apply.

(m) This section shall be implemented only if and to the extent
that federal financial participation is available and any necessary
federal approvals have been obtained.

(n) This section shall become operative on January 1, 2014.

SEC. 196.  

Section 14132.277 of the Welfare and Institutions
Code is amended to read:

14132.277.  

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

(1) “Coordinated Care Initiative county” means the Counties
of Alameda, Los Angeles, Orange, Riverside, San Bernardino, San
Diego, San Mateo, and Santa Clara, and any other county identified
in Appendix 3 of the begin delete memorandum of understanding between the
state and end delete begin insert Memorandum of Understanding Between end insert the Centers for
Medicare and Medicaid Services begin insert and the State of California end insert
Regarding A Federal-State Partnership to Test a Capitated Financial
Alignment Model for Medicare-Medicaid Enrollees, inclusive of
all amendments, as authorized by Section 14132.275.

(2) “D-SNP plan” means a Medicare Advantage Special Needs
Plan.

(3) “D-SNP contract” means a federal Medicare Improvements
for Patients and Provider Act of 2008 (Public Law 110-275)
compliant contract between the department and a D-SNP plan.

(b) For begin insert the 2014 end insert calendar year begin delete 2014 end delete , the department shall offer
D-SNP contracts to existing D-SNP plans to continue to provide
benefits to their enrollees in their service areas as approved on
January 1, 2013. The director may include in any D-SNP contract
provisions requiring that the D-SNP plan do the following:

(1) Submit to the department a complete and accurate copy of
the bid submitted by the plan to the begin insert federal end insert Centers for Medicare
and Medicaid Services for its D-SNP contract.

(2) Submit to the department copies of all utilization and quality
management reports submitted to the begin insert federal end insert Centers for Medicare
and Medicaid Services.

(c) In Coordinated Care Initiative counties, Medicare Advantage
plans and D-SNP plans may continue to enroll beneficiaries in
2014. In the 2014 calendar year, beneficiaries enrolled in a
Medicare Advantage or D-SNP plan operating in a Coordinated
Care Initiative county shall be exempt from the enrollment
provisions of subparagraph (A) of paragraph (1) of subdivision (l)
of Section 14132.275. Those beneficiaries may at any time
voluntarily choose to disenroll from their Medicare Advantage or
D-SNP plan and enroll in a demonstration site operating pursuant
to subdivision (g) of Section 14132.275. If a beneficiary chooses
to do so, that beneficiary may subsequently disenroll from the
demonstration site and return to fee-for-service Medicare or to a
D-SNP plan or Medicare Advantage plan.

SEC. 197.  

Section 14182.18 of the Welfare and Institutions
Code is amended to read:

14182.18.  

(a) It is the intent of the Legislature that both the
managed care plans participating in and providing long-term
services and supports under Sections 14182.16 and 14186.2 and
the state have protections against either significant overpayment
or significant underpayments. Risk corridors are one method of
risk sharing that may limit the financial risk of misaligning the
payments associated with a contract to furnish long-term services
and supports pursuant to a contract under the Coordinated Care
Initiative on an at-risk basis.

(b) In Coordinated Care Initiative counties, as defined in
paragraph (1) of subdivision (b) of Section 14182.16, for managed
care health plans providing long-term services and supports, the
department shall include in its contract with those plans risk
corridors designed with the following parameters:

(1) Risk corridors shall apply only to the costs of the individuals
and services identified below:

(A) Health care service costs for begin delete full benefit end delete begin insert full-benefit end insert dual
eligible beneficiaries begin insert , end insert as defined in paragraph (3) of subdivision
(b) of Section 14182.16 begin insert , end insert for whom both of the following are true:

(i) The beneficiary is enrolled in the managed care health plan
and the plan’s contract covers all Medi-Cal long-term services and
supports.

(ii) The beneficiary is not enrolled in the demonstration project.

(B) Long-term services and supports costs for begin delete partial benefit end delete
begin insert partial-benefit end insert dual eligible beneficiaries begin insert , end insert as defined in paragraph
(7) of subdivision (b) of Section begin delete 14182 end delete begin insert 14182.16, end insert and
non-dual-eligible beneficiaries who are enrolled in the managed
care health plan begin delete and end delete begin insert if end insert the plan’s contract covers all Medi-Cal
long-term services and supports.

(2) Risk corridors applied to costs of beneficiary services
identified in subparagraph (A) of paragraph (1) shall only be in
place for a period of 24 months starting with the first month in
which both mandatory enrollment of begin delete full benefit end delete begin insert full-benefit end insert dual
eligible beneficiaries pursuant to Section 14182.16 and mandatory
coverage of all Medi-Cal long-term services and supports pursuant
to Section 14186.2 have occurred.

(3) Risk corridors applied to costs of beneficiary services
identified in subparagraph (B) of paragraph (1) shall only be in
place for a period of 24 months starting with the first month in
which mandatory coverage of all Medi-Cal long-term services and
supports pursuant to Section 14186.2 has occurred.

(4) The risk sharing of the costs of the individuals and services
under this subdivision shall be constructed by the department so
that it is symmetrical with respect to risk and profit, and so that
all of the following apply:

(A) The managed care health plan is fully responsible for all
costs in excess of the capitated rate of the plan up to 1 percent.

(B) The managed care health plan shall fully retain the revenues
paid through the capitated rate in excess of the costs incurred up
to 1 percent.

(C) The managed care health plan and the department shall
share responsibility for costs in excess of the capitated rate of the
plan that are greater than 1 percent above the rate but less than 2.5
percent above the rate.

(D) The managed care health plan and the department shall
share the benefit of revenues in excess of the costs incurred that
are greater than 1 percent below the capitated rate of the plan but
less than 2.5 percent below the capitated rate of the plan.

(E) The department shall be fully responsible for all costs in
excess of the capitated rate of the plan that are more than 2.5
percent above the capitated rate of the plan.

(F) The department shall fully retain the revenues paid through
the capitated rate in excess of the costs incurred greater than 2.5
percent below the capitated rate of the plan.

(c) The department shall develop specific contractual language
implementing the requirements of this section and corresponding
details that shall be incorporated into the managed care health
plan’s contract.

(d) This section shall be implemented only to the extent that
any necessary federal approvals or waivers are obtained.

SEC. 198.  

Section 14186.1 of the Welfare and Institutions
Code is amended to read:

14186.1.  

For purposes of this article, the following definitions
shall apply unless otherwise specified:

(a) “Coordinated Care Initiative counties” begin delete shall have end delete begin insert has end insert the
same meaning as that term is defined in paragraph (1) of
subdivision (b) of Section 14182.16.

(b) “Home- and community-based services” means services
provided pursuant to paragraphs (1), (2), and (3) of subdivision
(c).

(c) “Long-term services and supports” or “LTSS” means all of
the following:

(1) In-home supportive services (IHSS) provided pursuant to
Article 7 (commencing with Section 12300) of Chapter 3, and
Sections 14132.95, 14132.952, and 14132.956.

(2) Community-Based Adult Services (CBAS).

(3) Multipurpose Senior Services Program (MSSP) services begin insert ,
which end insert include those services approved under a federal home- and
community-based services waiver or, beginning January 1, 2015,
or after 19 months, equivalent services.

(4) Skilled nursing facility services and subacute care services
established under subdivision (c) of Section 14132, including those
services described in Sections 51511 and 51511.5 of Title 22 of
the California Code of Regulations, regardless of whether the
service is included in the basic daily rate or billed separately, and
any leave of absence or bed hold provided consistent with Section
72520 of Title 22 of the California Code of Regulations or the
state begin delete plan. end delete

begin delete However, end delete begin insert plan. However, end insert services provided by any category of
intermediate care facility for the developmentally disabled shall
not be considered long-term services and supports.

(d) “Home- and community-based services (HCBS) plan
benefits” may include in-home and out-of-home respite, nutritional
assessment, counseling, and supplements, minor home or
environmental adaptations, habilitation, and other services that
may be deemed necessary by the managed care health plan,
including its care coordination team. The department, in
consultation with stakeholders, may determine whether health
plans shall be required to include these benefits in their scope of
service, and may establish guidelines for the scope, duration, and
intensity of these benefits. The grievance process for these benefits
shall be the same process as used for other benefits authorized by
managed care health plans, and shall comply with Section 14450,
and Sections 1368 and 1368.1 of the Health and Safety Code.

(e) “Managed care health plan” means an individual,
organization, or entity that enters into a contract with the
department pursuant to Article 2.7 (commencing with Section
14087.3), Article 2.8 (commencing with Section 14087.5), Article
2.81 (commencing with Section 14087.96), or Article 2.91
(commencing with Section 14089), of this chapter, or Chapter 8
(commencing with Section 14200). For begin delete the end delete purposes of this article,
“managed care health plan” shall not include an individual,
organization, or entity that enters into a contract with the
department to provide services pursuant to Chapter 8.75
(commencing with Section 14591) or the Senior Care Action
Network.

(f) “Other health coverage” means health coverage providing
the same full or partial benefits as the Medi-Cal program, health
coverage under another state or federal medical care program
except for the Medicare Program (Title XVIII of the federal Social
Security Act (42 U.S.C. Sec. 1395 et seq.)), or health coverage
under a contractual or legal entitlement, including, but not limited
to, a private group or indemnification insurance program.

(g) “Recipient” means a Medi-Cal beneficiary eligible for IHSS
provided pursuant to Article 7 (commencing with Section 12300)
of Chapter 3, and Sections 14132.95, 14132.952, and 14132.956.

(h) “Stakeholder” shall include, but begin delete shall end delete not be limited to, area
agencies on aging and independent living centers.

SEC. 199.  

Section 14186.36 of the Welfare and Institutions
Code is amended to read:

14186.36.  

(a) It is the intent of the Legislature that a universal
assessment process for LTSS be developed and tested. The initial
uses of this tool may inform future decisions about whether to
amend existing law regarding the assessment processes that
currently apply to LTSS programs, including IHSS.

(b) (1) In addition to the activities set forth in paragraph (9) of
subdivision (a) of Section 14186.35, county agencies shall continue
IHSS assessment and authorization processes, including making
final determinations of IHSS hours pursuant to Article 7
(commencing with Section 12300) of Chapter 3 and regulations
promulgated by the State Department of Social Services.

(2) No sooner than January 1, 2015, for the counties and
beneficiary categories specified in subdivision (e), counties shall
also utilize the universal assessment tool, as described in
subdivision (c), if one is available and upon completion of the
stakeholder process, system design and testing, and county training
described in subdivisions (c) and (e), for the provision of IHSS
services. This paragraph shall only apply to beneficiaries who
consent to the use of the universal assessment process. The
managed care health plans shall be required to cover IHSS services
based on the results of the universal assessment process specified
in this section.

(c) (1) No later than June 1, 2013, the department, the State
Department of Social Services, and the California Department of
Aging shall establish a stakeholder workgroup to develop the
universal assessment process, including a universal assessment
tool, for home- and community-based services, as defined in
subdivision (b) of Section 14186.1. The stakeholder workgroup
shall include, but not be limited to, consumers of IHSS and other
home- and community-based services and their authorized
representatives, managed care health plans, counties, IHSS, MSSP,
and CBAS providers, area agencies on aging, independent living
centers, and legislative staff. The universal assessment process
shall be used for all home- and community-based services,
including IHSS. In developing the process, the workgroup shall
build upon the IHSS uniform assessment process and hourly task
guidelines, the MSSP assessment process, and other appropriate
home- and community-based assessment tools.

(2) (A) In developing the universal assessment process, the
departments described in paragraph (1) shall develop a universal
assessment tool that will inform the universal assessment process
and facilitate the development of plans of care based on the
individual needs of the consumer. The workgroup shall consider
issues including, but not limited to, the following:

(i) The roles and responsibilities of the health plans, counties,
and home- and community-based services providers administering
the assessment.

(ii) The criteria for reassessment.

(iii) How the results of new assessments would be used for the
oversight and quality monitoring of home- and community-based
services providers.

(iv) How the appeals process would be affected by the
assessment.

(v) The ability to automate and exchange data and information
between home- and community-based services providers.

(vi) How the universal assessment process would incorporate
person-centered principles and protections.

(vii) How the universal assessment process would meet the
legislative intent of this article and the goals of the demonstration
project pursuant to Section 14132.275.

(viii) The qualifications for, and how to provide guidance to,
the individuals conducting the assessments.

(B) The workgroup shall also consider how this assessment may
be used to assess the need for nursing facility care and divert
individuals from nursing facility care to home- and
community-based services.

(d) No later than March 1, 2014, the department, the State
Department of Social Services, and the California Department of
Aging shall report to the Legislature on the stakeholder
workgroup’s progress in developing the universal assessment
process, and shall identify the counties and beneficiary categories
for which the universal assessment process may be implemented
pursuant to subdivision (e).

(e) (1)   No sooner than January 1, 2015, upon completion of the
design and development of a new universal assessment tool,
managed care health plans, counties, and other home- and
community-based services providers may test the use of the tool
for a specific and limited number of beneficiaries who receive or
are potentially eligible to receive home- and community-based
services pursuant to this article in no fewer than two, and no more
than four, of the counties where the provisions of this article are
implemented, if the following conditions have been met:

(A) The department has obtained any federal approvals through
necessary federal waivers or amendments, or state plan
amendments, whichever begin delete is end delete begin insert occurs end insert later.

(B) The system used to calculate the results of the tool has been
tested.

(C) Any entity responsible for using the tool has been trained
in its usage.

(2) To the extent the universal assessment tool or universal
assessment process results in changes to the authorization process
and provision of IHSS services, those changes shall be automated
in the Case Management Information and Payroll System.

(3) The department shall develop materials to inform consumers
of the option to participate in the universal assessment tool testing
phase pursuant to this paragraph.

(f) The department, the State Department of Social Services,
and the California Department of Aging shall implement a
rapid-cycle quality improvement system to monitor the
implementation of the universal assessment process, identify
significant changes in assessment results, and make modifications
to the universal assessment process to more closely meet the
legislative intent of this article and the goals of the demonstration
project pursuant to Section 14132.275.

(g) Until existing law relating to the IHSS assessment process
pursuant to Article 7 (commencing with Section 12300) of Chapter
3 is amended, beneficiaries shall have the option to request an
additional assessment using the previous assessment process for
those home- and community-based services and to receive services
according to the results of the additional assessment.

(h) No later than nine months after the implementation of the
universal assessment process, the department, the State Department
of Social Services, and the California Department of Aging, in
consultation with stakeholders, shall report to the Legislature on
the results of the initial use of the universal assessment process,
and may identify proposed additional beneficiary categories or
counties for expanded use of this process and any necessary
changes to provide statutory authority for the continued use of the
universal assessment process. These departments shall report
annually thereafter to the Legislature on the status and results of
the universal assessment process.

(i) This section shall remain operative only until July 1, 2017.

SEC. 200.  

Section 14701 of the Welfare and Institutions Code
is amended to read:

14701.  

(a) The State Department of Health Care Services, in
collaboration with the State Department of begin delete Mental Health end delete begin insert State
Hospitals end insert and the California Health and Human Services Agency,
shall create a state administrative and programmatic transition
plan, either as one comprehensive transition plan or separately, to
guide the transfer of the Medi-Cal specialty mental health managed
care and the EPSDT Program to the State Department of Health
Care Services effective July 1, 2012.

(b) (1) Commencing no later than July 15, 2011, the State
Department of Health Care Services, together with the State
Department of begin delete Mental Health, end delete begin insert State Hospitals, end insert shall convene a
series of stakeholder meetings and forums to receive input from
clients, family members, providers, counties, and representatives
of the Legislature concerning the transition and transfer of
Medi-Cal specialty mental health managed care and the EPSDT
Program. This consultation shall inform the creation of a state
administrative transition plan and a programmatic transition plan
that shall include, but is not limited to, the following components:

(A) The plan shall ensure that it is developed in a way that
continues access and quality of service during and immediately
after the transition, preventing any disruption of services to clients
and family members, providers and counties, and others affected
by this transition.

(B) A detailed description of the state administrative functions
currently performed by the State Department of Mental Health
regarding Medi-Cal specialty mental health managed care and the
EPSDT Program.

(C) Explanations of the operational steps, timelines, and key
milestones for determining when and how each function or program
will be transferred. These explanations shall also be developed for
the transition of positions and staff serving Medi-Cal specialty
mental health managed care and the EPSDT Program, and how
these will relate to, and align with, positions at the State
Department of Health Care Services. The State Department of
Health Care Services and the California Health and Human
Services Agency shall consult with the Department of begin delete Personnel
Administration end delete begin insert Human Resources end insert in developing this aspect of the
transition plan.

(D) A list of any planned or proposed changes or efficiencies
in how the functions will be performed, including the anticipated
fiscal and programmatic impacts of the changes.

(E) A detailed organization chart that reflects the planned
staffing at the State Department of Health Care Services in light
of the requirements of subparagraphs (A) to (C), inclusive, and
includes focused, high-level leadership for behavioral health issues.

(F) A description of how stakeholders were included in the
various phases of the planning process to formulate the transition
plans and a description of how their feedback will be taken into
consideration after transition activities are underway.

(2) The State Department of Health Care Services, together with
the State Department of begin delete Mental Health end delete begin insert State Hospitals end insert and the
California Health and Human Services Agency, shall convene and
consult with stakeholders at least twice following production of a
draft of the transition plans and before submission of transition
plans to the Legislature. Continued consultation with stakeholders
shall occur in accordance with the requirement in subparagraph
(F) of paragraph (1).

SEC. 201.  

Section 17603 of the Welfare and Institutions Code
is amended to read:

17603.  

begin insert (a) end insert begin insert   end insert This begin delete paragraph end delete begin insert subdivision end insert shall only apply until
the end of the 2012-13 fiscal year. On or before the 27th day of
each month, the Controller shall allocate to the local health and
welfare trust fund health accounts the amounts deposited and
remaining unexpended and unreserved on the 15th day of the month
in the Health Subaccount of the Sales Tax Account of the Local
Revenue Fund, in accordance with begin delete subdivisions (a) and (b): end delete
begin insert paragraphs (1) and (2): end insert

begin delete

(a)

end delete

begin insert (1) end insert  For the 1991-92 fiscal year, allocations shall be made in
accordance with the following schedule:

 

Jurisdiction	Allocation Percentage
Alameda	4.5046
Alpine	0.0137
Amador	0.1512
Butte	0.8131
Calaveras	0.1367
Colusa	0.1195
Contra Costa	2.2386
Del Norte	0.1340
El Dorado	0.5228
Fresno	2.3531
Glenn	0.1391
Humboldt	0.8929
Imperial	0.8237
Inyo	0.1869
Kern	1.6362
Kings	0.4084
Lake	0.1752
Lassen	0.1525
Los Angeles	37.2606
Madera	0.3656
Marin	1.0785
Mariposa	0.0815
Mendocino	0.2586
Merced	0.4094
Modoc	0.0923
Mono	0.1342
Monterey	0.8975
Napa	0.4466
Nevada	0.2734
Orange	5.4304
Placer	0.2806
Plumas	0.1145
Riverside	2.7867
Sacramento	2.7497
San Benito	0.1701
San Bernardino	2.4709
San Diego	4.7771
San Francisco	7.1450
San Joaquin	1.0810
San Luis Obispo	0.4811
San Mateo	1.5937
Santa Barbara	0.9418
Santa Clara	3.6238
Santa Cruz	0.6714
Shasta	0.6732
Sierra	0.0340
Siskiyou	0.2246
Solano	0.9377
Sonoma	1.6687
Stanislaus	1.0509
Sutter	0.4460
Tehama	0.2986
Trinity	0.1388
Tulare	0.7485
Tuolumne	0.2357
Ventura	1.3658
Yolo	0.3522
Yuba	0.3076
Berkeley	0.0692
Long Beach	0.2918
Pasadena	0.1385

 

begin delete

(b)

end delete

begin insert (2) end insert  For the 1992-93 fiscal year and fiscal years thereafter until
the commencement of the 2013-14 fiscal year, the allocations to
each county and city and county shall equal the amounts received
in the prior fiscal year by each county, city, and city and county
from the Sales Tax Account and the Sales Tax Growth Account
of the Local Revenue Fund into the health and welfare trust fund.

begin delete

(c)

end delete

begin insert (b) end insert  (1) For the 2013-14 fiscal year, on the 27th day of each
month, the Controller shall allocate, in the same proportion as
funds in begin delete subdivision (b) end delete begin insert paragraph (2) of subdivision (a) end insert were
allocated, to each county’s and city and county’s local health and
welfare trust fund health accounts, the amounts deposited and
remaining unexpended and unreserved on the 15th day of the month
in the Health Subaccount of the Sales Tax Account of the Local
Revenue Fund.

(2) (A) Beginning January 2014 and for the remainder of the
2013-14 fiscal year, on or before the 27th of each month, the
Controller shall transfer to the Family Support Subaccount from
the Health Subaccount amounts determined pursuant to a schedule
prepared by the Department of Finance in consultation with the
California State Association of Counties. Cumulatively, no more
than three hundred million dollars ($300,000,000) shall be
transferred.

(B) Every month, after the transfers in subparagraph (A) have
occurred, the remainder shall be allocated to the counties and cities
and counties in the same proportions as funds in begin delete subdivision (b) end delete
begin insert paragraph (2) of subdivision (a) end insert were allocated.

(C) For counties participating in the County Medical Services
Program, transfers from each county shall not be greater than the
monthly amount the county would otherwise pay pursuant to
paragraph (2) of subdivision (j) of Section 16809 for participation
in the County Medical Services Program. Any difference between
the amount paid by these counties and the proportional share of
the three hundred million dollars ($300,000,000) calculated as
payable by these counties and the County Medical Services
Program shall be paid from the funds available for allocation to
the County Medical Services Program in accordance with the
Welfare and Institutions Code.

(3) For the 2013-14 fiscal year, the Controller, using the same
timing and criteria used in paragraph (1), shall allocate to each
city, not to include a city and county, funds that shall equal the
amounts received in the prior fiscal year by each city from the
Sales Tax Account and the Sales Tax Growth Account of the Local
Revenue Fund into the health and welfare trust fund.

begin delete

(d)

end delete

begin insert (c) end insert  (1) (A) For the 2014-15 fiscal year and for every fiscal
year thereafter, the Department of Finance, in consultation with
the California State Association of Counties, shall calculate the
amount each county or city and county shall contribute to the
Family Support Subaccount in accordance with Section 17600.50.

(B) On or before the 27th of each month, the Controller shall
transfer, based on a schedule prepared begin insert by end insert the Department of
Finance in consultation with the California State Association of
Counties, from the funds deposited and remaining unexpended
and unreserved on the 15th day of the month in the Health
Subaccount of the Sales Tax Account of the Local Revenue Fund
to the Family Support Subaccount, funds that equal, over the course
of the year, the amount determined in subparagraph (A) pursuant
to a schedule provided by the Department of Finance.

(C) After the transfer in subparagraph (B) has occurred, the
begin delete State end delete Controller shall allocate on or before the 27th of each month
to health account in the local health and welfare trust fund of every
county and city and county from a schedule prepared by the
Department of Finance, in consultation with the California State
Association of Counties, any funds remaining in the Health
Account from the funds deposited and remaining unexpended and
unreserved on the 15th day of the month in the Health Subaccount
of the Sales Tax Account of the Local Revenue Fund. The schedule
shall be prepared as the allocations would have been distributed
pursuant to begin delete subdivision (b). end delete begin insert paragraph (2) of subdivision (a). end insert

(D) For the 2014-15 fiscal year and for every fiscal year
thereafter, the Controller, using the same timing and criteria as
had been used in begin delete subdivision (b), end delete begin insert paragraph (2) of subdivision (a), end insert
shall allocate to each city, not to include a city and county, funds
that equal the amounts received in the prior fiscal year by each
city from the Sales Tax Account and the Sales Tax Growth Account
of the Local Revenue Fund into the health and welfare trust fund.

SEC. 202.  

Section 17604 of the Welfare and Institutions Code
is amended to read:

17604.  

(a) All motor vehicle license fee revenues collected in
the 1991-92 fiscal year that are deposited to the credit of the Local
Revenue Fund shall be credited to the Vehicle License Fee Account
of that fund.

(b) (1) For the 1992-93 fiscal year and fiscal years thereafter,
from vehicle license fee proceeds from revenues deposited to the
credit of the Local Revenue Fund, the Controller shall make
monthly deposits to the Vehicle License Fee Account of the Local
Revenue Fund until the deposits equal the amounts that were
allocated to counties, cities, and cities and counties as general
purpose revenues in the prior fiscal year pursuant to this chapter
from the Vehicle License Fee Account in the Local Revenue Fund
and the Vehicle License Fee Account and the Vehicle License Fee
Growth Account in the Local Revenue Fund.

(2) Any excess vehicle fee revenues deposited into the Local
Revenue Fund pursuant to Section 11001.5 of the Revenue and
Taxation Code shall be deposited in the Vehicle License Fee
Growth Account of the Local Revenue Fund.

(3) The Controller shall calculate the difference between the
total amount of vehicle license fee proceeds deposited to the credit
of the Local Revenue Fund, pursuant to paragraph (1) of
subdivision (a) of Section 11001.5 of the Revenue and Taxation
Code, and deposited into the Vehicle License Fee Account for the
period of July 16, 2009, to July 15, 2010, inclusive, and the amount
deposited for the period of July 16, 2010, to July 15, 2011,
inclusive.

(4) Of vehicle license fee proceeds deposited to the Vehicle
License Fee Account after July 15, 2011, an amount equal to the
difference calculated in paragraph (3) shall be deemed to have
been deposited during the period of July 16, 2010, to July 15, 2011,
inclusive, and allocated to cities, counties, and a city and county
as if those proceeds had been received during the 2010-11 fiscal
year.

(c) (1) On or before the 27th day of each month, the Controller
shall allocate to each county, city, or city and county, as general
purpose revenues the amounts deposited and remaining unexpended
and unreserved on the 15th day of the month in the Vehicle License
Fee Account of the Local Revenue Fund, in accordance with
paragraphs (2) and (3).

(2) For the 1991-92 fiscal year, allocations shall be made in
accordance with the following schedule:

 

Jurisdiction	Allocation Percentage
Alameda	4.5046
Alpine	0.0137
Amador	0.1512
Butte	0.8131
Calaveras	0.1367
Colusa	0.1195
Contra Costa	2.2386
Del Norte	0.1340
El Dorado	0.5228
Fresno	2.3531
Glenn	0.1391
Humboldt	0.8929
Imperial	0.8237
Inyo	0.1869
Kern	1.6362
Kings	0.4084
Lake	0.1752
Lassen	0.1525
Los Angeles	37.2606
Madera	0.3656
Marin	1.0785
Mariposa	0.0815
Mendocino	0.2586
Merced	0.4094
Modoc	0.0923
Mono	0.1342
Monterey	0.8975
Napa	0.4466
Nevada	0.2734
Orange	5.4304
Placer	0.2806
Plumas	0.1145
Riverside	2.7867
Sacramento	2.7497
San Benito	0.1701
San Bernardino	2.4709
San Diego	4.7771
San Francisco	7.1450
San Joaquin	1.0810
San Luis Obispo	0.4811
San Mateo	1.5937
Santa Barbara	0.9418
Santa Clara	3.6238
Santa Cruz	0.6714
Shasta	0.6732
Sierra	0.0340
Siskiyou	0.2246
Solano	0.9377
Sonoma	1.6687
Stanislaus	1.0509
Sutter	0.4460
Tehama	0.2986
Trinity	0.1388
Tulare	0.7485
Tuolumne	0.2357
Ventura	1.3658
Yolo	0.3522
Yuba	0.3076
Berkeley	0.0692
Long Beach	0.2918
Pasadena	0.1385

 

(3) For the 1992-93, 1993-94, and 1994-95 fiscal begin delete year end delete begin insert years end insert
and fiscal years thereafter, allocations shall be made in the same
amounts as were distributed from the Vehicle License Fee Account
and the Vehicle License Fee Growth Account in the prior fiscal
year.

(4) For the 1995-96 fiscal year, allocations shall be made in the
same amounts as distributed in the 1994-95 fiscal year from the
Vehicle License Fee Account and the Vehicle License Fee Growth
Account after adjusting the allocation amounts by the amounts
specified for the following counties:

 

Alpine	$(11,296)
Amador	25,417
Calaveras	49,892
Del Norte	39,537
Glenn	(12,238)
Lassen	17,886
Mariposa	(6,950)
Modoc	(29,182)
Mono	(6,950)
San Benito	20,710
Sierra	(39,537)
Trinity	(48,009)

 

(5)  begin insert (A) end insert begin insert   end insert For the 1996-97 fiscal year and fiscal years thereafter,
allocations shall be made in the same amounts as were distributed
from the Vehicle License Fee Account and the Vehicle License
Fee Growth Account in the prior fiscal year.

begin delete

Initial

end delete

begin insert (B) end insert begin insert   end insert begin insert Initial end insert proceeds deposited in the Vehicle License Fee
Account in the 2003-04 fiscal year in the amount that would
otherwise have been transferred pursuant to begin insert former end insert Section 10754
of the Revenue and Taxation Code for the period June 20, 2003,
to July 15, 2003, inclusive, shall be deemed to have been deposited
during the period June 16, 2003, to July 15, 2003, inclusive, and
allocated to cities, counties, and a city and county during the
2002-03 fiscal year.

(d) The Controller shall make monthly allocations from the
amount deposited in the Vehicle License Collection Account of
the Local Revenue Fund to each county in accordance with a
schedule to be developed by the State Department of begin delete Mental Health end delete
begin insert State Hospitals end insert in consultation with the California Mental Health
Directors Association, which is compatible with the intent of the
Legislature expressed in the act adding this subdivision.

(e)  begin delete Prior to end delete begin insert Before end insert making the monthly allocations in accordance
with paragraph (5) of subdivision (c) and subdivision (d), and
pursuant to a schedule provided by the Department of Finance,
the Controller shall adjust the monthly distributions from the
Vehicle License Fee Account to reflect an equal exchange of sales
and use tax funds from the Social Services Subaccount to the
Health Subaccount, as required by subdivisions (d) and (e) of
Section 17600.15, and of Vehicle License Fee funds from the
Health Account to the Social Services Account. Adjustments made
to the Vehicle License Fee distributions pursuant to this subdivision
shall not be used in calculating future year allocations to the
Vehicle License Fee Account.

SEC. 203.  

Section 17606.10 of the Welfare and Institutions
Code is amended to read:

17606.10.  

(a) For the 1992-93 fiscal year and subsequent
fiscal years, the Controller shall allocate funds, on a monthly basis
from the General Growth Subaccount in the Sales Tax Growth
Account to the appropriate accounts in the local health and welfare
trust fund of each county, city, and city and county in accordance
with a schedule setting forth the percentage of total state resources
received in the 1990-91 fiscal year, including State Legalization
Impact Assistance Grants distributed by the state under begin insert former end insert
Part 4.5 (commencing with Section 16700), funding provided for
purposes of implementation of Division 5 (commencing with
Section 5000), for the organization and financing of community
mental health services, including the Cigarette and Tobacco
Products Surtax proceeds begin delete which end delete begin insert that end insert are allocated to county mental
health programs pursuant to Chapter 1331 of the Statutes of 1989,
Chapter 51 of the Statutes of 1990, and Chapter 1323 of the
Statutes of 1990, and state hospital funding and funding distributed
for programs administered under Sections 1794, 10101.1, and
11322.2, as annually adjusted by the Department of Finance, in
conjunction with the appropriate state department to reflect changes
in equity status from the base percentages. However, for the
1992-93 fiscal year, the allocation for community mental health
services shall be based on the following schedule:

 

	Percentage
	of Statewide
Jurisdiction	Resource Base
Alameda	4.3693
Alpine	0.0128
Amador	0.0941
Butte	0.7797
Calaveras	0.1157
Colusa	0.0847
Contra Costa	2.3115
Del Norte	0.1237
El Dorado	0.3966
Fresno	3.1419
Glenn	0.1304
Humboldt	0.6175
Imperial	0.5425
Inyo	0.1217
Kern	1.8574
Kings	0.4229
Lake	0.2362
Lassen	0.1183
Los Angeles	27.9666
Madera	0.3552
Marin	0.9180
Mariposa	0.0792
Mendocino	0.4099
Merced	0.8831
Modoc	0.0561
Mono	0.0511
Monterey	1.1663
Napa	0.3856
Nevada	0.2129
Orange	5.3423
Placer	0.5034
Plumas	0.1134
Riverside	3.6179
Sacramento	4.1872
San Benito	0.1010
San Bernardino	4.5494
San Diego	7.8773
San Francisco	3.5335
San Joaquin	2.4690
San Luis Obispo	0.6652
San Mateo	2.5169
Santa Barbara	1.0745
Santa Clara	5.0488
Santa Cruz	0.7960
Shasta	0.5493
Sierra	0.0345
Siskiyou	0.2051
Solano	0.6694
Sonoma	1.1486
Stanislaus	1.4701
Sutter/Yuba	0.6294
Tehama	0.2384
Trinity	0.0826
Tulare	1.4704
Tuolumne	0.1666
Ventura	1.9311
Yolo	0.5443
Berkeley	0.2688
Tri-City	0.2347

 

(b) The Department of Finance shall recalculate the resource
base used in determining the General Growth Subaccount
allocations to the Health Account, Mental Health Account, and
Social Services Account of the local health and welfare trust fund
of each city, county, and city and county for the 1994-95 fiscal
year general growth allocations according to subdivisions (c) and
(d). For the 1995-96 fiscal year and annually until the end of the
2012-13 fiscal year, the Department of Finance shall prepare the
schedule of allocations of growth based upon the recalculation of
the resource base as provided by subdivision (c).

(c) For the Mental Health Account, the Department of Finance
shall do all of the following:

(1) Use the following sources as reported by the State
Department of begin delete Mental Health: end delete begin insert State Hospitals: end insert

(A) The final December 1992 distribution of resources
associated with Institutes for Mental Disease.

(B) The 1990-91 fiscal year state hospitals and community
mental health allocations.

(C) Allocations for services provided for under Chapter 1294
of the Statutes of 1989.

(2) Expand the resource base with the following nonrealigned
funding sources as allocated among the counties:

(A) Tobacco surtax allocations made under Chapter 1331 of the
Statutes of 1989 and Chapter 51 of the Statutes of 1990.

(B) For the 1994-95 allocation year only, Chapter 1323 of the
Statutes of 1990.

(C) 1993-94 fiscal year federal homeless block grant allocation.

(D) 1993-94 fiscal year Mental Health Special Education
allocations.

(E) 1993-94 fiscal year allocations for the system of care for
children, in accordance with Chapter 1229 of the Statutes of 1992.

(F) 1993-94 fiscal year federal Substance Abuse and Mental
Health Services Administration block grant allocations pursuant
to Subchapter 1 (commencing with Section 10801) of Chapter 114
of Title 42 of the United States Code.

(d) Until the end of the 2012-13 fiscal year, for the Health
Account, the Department of Finance shall use the historical
resource base of state funds as allocated among the counties, cities,
and city and county as reported by the begin insert former end insert State Department
of Health Services in a September 17, 1991, report of Indigent and
Community Health Resources.

(e) The Department of Finance shall use these adjusted resource
bases for the Health Account and Mental Health Account to
calculate what the 1994-95 fiscal year General Growth Subaccount
allocations would have been, and together with 1994-95 fiscal
year Base Restoration Subaccount allocations, CMSP subaccount
allocations, equity allocations to the Health Account and Mental
Health Account as adjusted by subparagraph (E) of paragraph (2)
of subdivision (c) of Section 17606.05, and special equity
allocations to the Health Account and Mental Health Account as
adjusted by subdivision (e) of Section 17606.15 reconstruct the
1994-95 fiscal year General Growth Subaccount resource base
for the 1995-96 allocation year for each county, city, and city and
county. Notwithstanding any other begin delete provision of end delete law, the actual
1994-95 general growth allocations shall not become part of the
realignment base allocations to each county, city, and city and
county. The total amounts distributed by the Controller for general
growth for the 1994-95 allocation year shall be reallocated among
the counties, cities, and city and county in the 1995-96 allocation
year according to this paragraph, and shall be included in the
general growth resource base for the 1996-97 allocation year and
each fiscal year thereafter. For the 1996-97 allocation year and
fiscal years thereafter, the Department of Finance shall update the
base with actual growth allocations to the Health Account, Mental
Health Account, and Social Services Account of each county, city,
and city and county local health and welfare trust fund in the prior
year, and adjust for actual changes in nonrealigned funds specified
in subdivision (c) in the year prior to the allocation year.

(f) For the 2013-14 fiscal year and every fiscal year thereafter,
the Controller shall do all of the following:

(1) Allocate to the begin delete mental health account end delete begin insert Mental Health Account end insert
of each county, city, or city and county based on a schedule
provided by the Department of Finance. The Department of Finance
shall recalculate the resource base used in determining the General
Growth Subaccount allocations to begin delete mental health account end delete begin insert the Mental
Health Account end insert in accordance with subdivision (c) and allocate
based on that recalculation.

(2) Allocate 18.4545 percent of the total General Growth
Subaccount to the Health Account.

(3) Allocate to the Child Poverty and Family Supplemental
Support Subaccount in the Sales Tax Account the remainder of
the funds in the General Growth Subaccount.

SEC. 204.  

Section 17612.3 of the Welfare and Institutions
Code is amended to read:

17612.3.  

(a) For each fiscal year, commencing with the
2013-14 fiscal year, the amount to be redirected in accordance
with Section 17612.1 shall be determined for each public hospital
health system county as follows:

(1) The public hospital health system county’s revenues and
other funds paid or payable for the state fiscal year shall be
comprised of the total of the following:

(A) Medi-Cal revenues.

(B) Uninsured revenues.

(C) Medicaid demonstration revenues.

(D) Hospital fee direct grants.

(E) Special local health funds.

(F) The county indigent care health realignment amount.

(G) The imputed county low-income health amount.

(H) Imputed gains from other payers.

(I) The amount by which the public hospital health system
county’s costs exceeded the cost containment limit for the fiscal
year, expressed as a negative number, multiplied by 0.50.

(2) The following, incurred by the public hospital health system
county for the fiscal year, not to exceed in total the cost
containment limit, shall be subtracted from the sum in paragraph
(1):

(A) Medi-Cal costs.

(B) Uninsured costs.

(C) The lesser of the other entity intergovernmental transfer
amount or the imputed other entity intergovernmental transfer
amounts.

(D) New mandatory other entity intergovernmental transfer
amounts.

(3) The resulting amount determined in paragraph (2) shall be
multiplied by 0.80, except that for the 2013-14 fiscal year the
resulting amount determined in paragraph (2) shall be multiplied
by 0.70.

(4) If the amount in paragraph (3) is a positive number, that
amount, subject to paragraph (5), shall be redirected in accordance
with Section 17612.1, except that for the 2013-14 fiscal year the
amount to be redirected shall not exceed the amount determined
for the county for the 2013-14 fiscal year under subdivision (c)
of Section 17603, as that amount may have been reduced by the
application of Section 17610.5. If the amount determined in
paragraph (3) is a negative number, the redirected amount shall
be zero.

(5) Notwithstanding any other law, the amount to be redirected
as determined in paragraph (4) for any fiscal year shall not exceed
the county indigent care health realignment amount for that fiscal
year.

(6) (A) The redirected amount shall be applied until the later
of the following:

(i) June 30, 2023.

(ii) The beginning of the fiscal year following a period of two
consecutive fiscal years in which both of the following occur:

begin delete

(aa)

end delete

begin insert (I) end insert  The total interim amount determined under subdivision (b)
begin delete of Section 17612.3 end delete in May of the previous fiscal year is within 10
percent of the final, reconciled amount in subdivision (d) begin delete of that
section end delete .

begin delete

(bb)

end delete

begin insert (II) end insert  The final, reconciled amounts under subdivision (d) begin delete of
Section 17612.3 end delete are within 5 percent of each other.

(B) After the redirected amount ceases as provided in
subparagraph (A), a permanent redirected amount shall be
established to be an amount determined by calculating the
percentage that the redirected amount was in the last fiscal year
of the operation of this article of the county’s health realignment
amount of that same fiscal year, multiplied by the county’s health
realignment amount of all subsequent years.

(b) Commencing with the 2014-15 fiscal year, the department
shall calculate an interim redirected amount for each public hospital
health system county under subdivision (a) by the January
immediately prior to the starting fiscal year, using the most recent
and accurate data available. For purposes of the interim
determinations, the cost containment limit shall not be applied.
The interim redirected amount shall be updated in the May before
the start of the fiscal year in consultation with each public hospital
health system county and based on any more recent and accurate
data available at that time. During the fiscal year, the interim
redirected amount will be applied pursuant to Section 17612.1.

(c) The predetermined amounts or historical percentages
described in subdivisions (i), (l), (m), (n), and (w) of Section
17612.2 shall each be established in accordance with the following
procedure:

(1) By October 31, 2013, each public hospital health system
county shall determine the amount or percentage described in the
applicable subdivision, and shall provide this calculation to the
department, supported by verifiable data and a description of how
the determination was made.

(2) If the department disagrees with the public hospital health
system county’s determination, the department shall confer with
the public hospital health system county by December 15, 2013,
and shall issue its determination by January 31, 2014.

(3) If no agreement between the parties has been reached by
January 31, 2014, the department shall apply the county’s
determination when making the interim calculations pursuant to
subdivision (b), until a decision is issued pursuant to paragraph
(6).

(4) If no agreement between the parties has been reached by
January 31, 2014, the public hospital health system county shall
submit a petition by February 28, 2014, to the County Health Care
Funding Resolution Committee, established pursuant to Section
17600.60, to seek a decision regarding the historical percentage
or amount to be applied in calculations under this section.

(5) The County Health Care Funding Resolution Committee
shall hear and make a determination as to whether the county’s
proposed percentage or amount complies with the requirements
of this section taking into account the data and calculations of the
county and any alternative data and calculations submitted by the
department.

(6) The committee shall issue its final determination within 45
days of the petition. If the county chooses to contest the final
determination, the final determination of the committee will be
applied for purposes of any interim calculation under subdivision
(b) until a final decision is issued pursuant to de novo
administrative review pursuant to paragraph (2) of subdivision (d).

(d) (1) The data for the final calculations under subdivision (a)
for the fiscal year shall be submitted by public hospital health
system counties within 12 months after the conclusion of each
fiscal year as required in Section 17612.4. The data shall be the
most recent and accurate data from the public hospital health
system county’s books and records pertaining to the revenues paid
or payable, and the costs incurred, for services provided in the
subject fiscal year. After consulting with the county, the department
shall make final calculations using the data submitted pursuant to
this paragraph by December 15 of the following fiscal year, and
shall provide its final determination to the county. The final
determination will also reflect the application of the cost
containment limit, if any. If the county and the department agree,
a revised recalculation and reconciliation may be completed by
the department within six months thereafter.

(2) The director shall establish an expedited formal appeal
process for a public hospital health system county to contest final
determinations made under this article. No appeal shall be available
for interim determinations made under subdivision (b). The appeals
process shall include all of the following:

(A) The public hospital health system county shall have 30
calendar days, following the issuance of a final determination made
under paragraph (6) of subdivision (c) or paragraph (1) of this
subdivision, to file an appeal with the Director of Health Care
Services. All appeals shall be governed by Section 100171 of the
Health and Safety Code, except for those provisions of paragraph
(1) of subdivision (d) of Section 100171 of the Health and Safety
Code relating to accusations, statements of issues, statement to
respondent, and notice of defense, and except as otherwise set
forth in this section. All appeals shall be in writing and shall be
filed with the State Department of Health Care Service’s Office
of Administrative Hearings and Appeals. An appeal shall be
deemed filed on the date it is received by the Office of
Administrative Hearings and Appeals.

(i) An appeal shall specifically set forth each issue in dispute,
which may include any component of the determination, and
include the public hospital health system county’s contentions as
to those issues. A formal hearing before an Office of
Administrative Hearings and Appeals Administrative Law Judge
shall commence within 60 days of the filing of the appeal
requesting a formal hearing. A final decision under this paragraph
shall be adopted no later than six months following the filing of
the appeal.

(ii) If the public hospital health system county fails to file an
appeal within 30 days of the issuance of a determination made
under this section, the determination of the department shall be
deemed final and not appealable either administratively or to a
court of general jurisdiction, except that a county may elect to
appeal a determination under subdivision (c) within 30 days of the
issuance of the County Health Care Funding Resolution
Committee’s final determination under paragraph (6) of subdivision
(c) or as a component of an appeal of the department’s final
determination under paragraph (1) of this subdivision for the
2013-14 fiscal year.

(B) If a final decision under this paragraph is not issued by the
department within two years of the last day of the subject fiscal
year, the public hospital health system county shall be deemed to
have exhausted its administrative remedies and shall not be
precluded from pursuing any available judicial review. However,
the time period in this subdivision shall be extended by either of
the following:

(i) Undue delay caused by the public hospital health system
county.

(ii) An extension of time granted to a public hospital health
system county at its sole request, or following the joint request of
the public hospital health system county and the department.

(C) If the final decision issued by the department pursuant to
this paragraph results in a different determination than that
originally determined by the department, then the Department of
Finance shall adjust the original determination by that amount,
pursuant to a process developed by the Department of Finance and
in consultation with the public hospital health system counties.

(e) For purposes of this article, all references to “health services”
or “health care services,” unless specified otherwise, shall exclude
nursing facility, mental health, and substance use disorder services.

SEC. 205.  

Section 17612.5 of the Welfare and Institutions
Code is amended to read:

17612.5.  

(a) For the 2013-14 fiscal year and each year
thereafter, the amount to be redirected in accordance with Section
17612.1 for the County of Los Angeles shall be determined in
accordance with Section 17612.3, except that the formula in
subdivision (a) of Section 17612.3 shall be replaced with the
following formula:

(1) The total revenues as defined in paragraph (7) of subdivision
(b) paid or payable to the County of Los Angeles, Department of
Health Services, for the fiscal year, which shall include special
local health funds and as adjusted in accordance with Section
17612.6, shall be added together.

(2) The sum of three hundred twenty-three million dollars
($323,000,000), which represents the imputed county low-income
health amount trended annually by 1 percent from the 2012-13
fiscal year through the applicable fiscal year, and the county
indigent care health realignment amount, as determined in
accordance with subdivision (e) of Section 17612.2 for the fiscal
year.

(3) The amount by which the county’s total costs exceeded the
cost containment limit for the fiscal year, expressed as a negative
number, multiplied by 0.50.

(4) (A) The total costs begin insert , end insert as defined in paragraph (6) of
subdivision (b) begin insert , end insert incurred by or on behalf of the County of Los
Angeles, Department of Health Services, for the fiscal year shall
be added together, but shall not exceed the cost containment limit
determined in accordance with paragraph (3) of subdivision (b).

(B) The costs in paragraph (A) shall be subtracted from the sum
of paragraphs (1) to (3), inclusive.

(5) The resulting amount determined in subparagraph (B) of
paragraph (4) shall be multiplied by 0.80, except that for the
2013-14 fiscal year, the resulting amount determined in
subparagraph (B) of paragraph (4) shall be multiplied by 0.70.

(6) If the amount in paragraph (5) is a positive number, that
amount, subject to paragraph (7), shall be redirected in accordance
with Section 17612.1 of this article, except that for the 2013-14
fiscal year the amount to be redirected shall not exceed the amount
determined for the County of Los Angeles for the 2013-14 fiscal
year under subdivision (c) of Section 17603, as that amount may
have been reduced by the application of Section 17610.5. If the
amount determined in paragraph (5) is a negative number, the
redirected amount shall be zero.

(7) Notwithstanding any other begin delete provision of end delete law, the amount to
be redirected as determined in paragraph (6) for any fiscal year
shall not exceed the county indigent care health realignment
amount for that fiscal year.

(8) (A) The redirected amount shall be applied until the later
of:

(i) June 30, 2023.

(ii) The beginning of begin insert the end insert fiscal year following a period of two
consecutive fiscal years that both of the following occur:

begin delete

(aa)

end delete

begin insert (I) end insert  The total interim amount determined under subdivision (b)
of Section 17612.3 in May of the previous fiscal year is within 10
percent of the final, reconciled amount in subdivision (d) of that
section.

begin delete

(bb)

end delete

begin insert (II) end insert  The final, reconciled amounts under subdivision (d) of
Section 17612.3 are within 5 percent of each other.

(B) After the redirected amount ceases as provided in
subparagraph (A), a permanent redirected amount shall be
established to be an amount determined by calculating the
percentage that the redirected amount was in the last fiscal year
of the operation of this article of the county’s health realignment
amount of that same fiscal year, multiplied by the county’s health
realignment amount of all subsequent years.

(b) Except as otherwise provided in this section, the definitions
in Section 17612.2 begin delete shall end delete apply. For purposes of this section, and
for purposes begin insert of end insert the calculations in Section 17612.3 that apply to
the County of Los Angeles, the following definitions begin delete shall end delete apply:

(1) “Adjusted patient day” means LA County DHS’s total
number of patient days multiplied by the following fraction: the
numerator that is the sum of the county public hospital health
system’s total gross revenue for all services provided to all patients,
including nonhospital services, and the denominator that is the
sum of the county public hospital health system’s gross inpatient
revenue. The adjusted patient days shall pertain to those services
that are provided by the LA County DHS, and shall exclude
services that are provided by contract or out-of-network clinics or
hospitals. For purposes of this paragraph, gross revenue shall be
adjusted as necessary to reflect the relationship between inpatient
costs and charges and outpatient costs and charges.

(2) “Blended CPI trend factor” means the blended percent
change applicable for the state fiscal year that is derived from the
nonseasonally adjusted Consumer Price Index for All Urban
Consumers (CPI-U), United States City Average, for Hospital and
Related Services, weighted at 90 percent, and for Medical Care
Services, weighted at 10 percent, all as published by the United
States Bureau of Labor Statistics, computed as follows:

(A) For each prior fiscal year, within the period to be trended
through the fiscal year, the annual average of the monthly index
amounts shall be determined separately for the Hospital and
Related Services Index and the Medical Care Services Index.

(B) The year-to-year percentage changes in the annual averages
determined in subparagraph (A) for each of the Hospital and
Related Services Index and the Medical Care Services Index shall
be determined.

(C) A weighted average annual percentage change for each
year-to-year period shall be calculated from the determinations
made in subparagraph (B), with the percentage changes in the
Hospital and Related Services Index weighted at 90 percent, and
the percentage changes in the Medical Care Services Index
weighted at 10 percent. The resulting average annual percentage
changes shall be expressed as a fraction, and increased by 1.00.

(D) The product of the successive year-to-year amounts
determined in subparagraph (C) shall be the blended CPI trend
factor.

(3) “Cost containment limit” means the LA County DHS’s total
costs determined for the 2014-15 fiscal year and each subsequent
fiscal year adjusted as follows:

(A) The County of Los Angeles will be deemed to comply with
the cost containment limit if the county demonstrates that its total
costs for the fiscal year did not exceed its total costs in the base
year, multiplied by the blended CPI trend factor for the fiscal year
as reflected in the annual report of financial transactions required
to be submitted to the Controller pursuant to Section 53891 of the
Government Code. If the total costs for the fiscal year exceeded
the total cost in the base year, multiplied by the blended CPI trend
factor for the fiscal year, the calculation in subparagraph (B) shall
be performed.

(B) (i) If the number of adjusted patient days of service provided
by LA County DHS for the fiscal year exceeds its number of
adjusted patient days of service rendered in the base year by at
least 10 percent, the excess adjusted patient days above the base
year for the fiscal year shall be multiplied by the cost per adjusted
patient day of the public hospital health system for the base year.
The result shall be added to the trended base year amount
determined in subparagraph (A), yielding the applicable cost
containment limit, subject to subparagraph (C). Costs per adjusted
patient day shall be based upon only those LA County DHS costs
incurred for patient care services.

(ii) If the number of adjusted patient days of service provided
by LA County DHS for the fiscal year does not exceed its number
of adjusted patient days of service rendered in the base year by at
least 10 percent, the applicable limit is the trended base year
amount determined in subparagraph (A) subject to subparagraph
(C).

(C) If LA County DHS’s total costs for the fiscal year begin delete in end delete begin insert , end insert as
determined in subparagraph (A) begin insert , end insert exceeds the trended cost as
determined in subparagraph (A) as adjusted by subparagraph (B),
the following cost increases shall be added to and reflected in any
cost containment limit:

(i) Electronic health records and related implementation and
infrastructure costs.

(ii) Costs related to state or federally mandated activities,
requirements, or benefit changes.

(iii) Costs resulting from a court order or settlement.

(iv) Costs incurred in response to seismic concerns, including
costs necessary to meet facility seismic standards.

(v) Costs incurred as a result of a natural disaster or act of
terrorism.

(vi) The total amount of any intergovernmental transfer for the
nonfederal share of Medi-Cal payments to the hospital facility
described in subdivision (f) of Section 14165.50.

(D) If LA County DHS’s total costs for the fiscal year exceed
the trended costs as adjusted by subparagraphs (B) and (C), the
county may request that the department consider other costs as
adjustments to the cost containment limit, including, but not limited
to, transfer amounts in excess of the imputed other entity
intergovernmental transfer amount trended by the blended CPI
trend factor, costs related to case mix index increases, pension
costs, expanded medical education programs, increased costs in
response to delivery system changes in the local community, and
system expansions, including capital expenditures necessary to
ensure access to and the quality of health care. Costs approved by
the department shall be added to and reflected in the cost
containment limit.

(4) “Health realignment indigent care percentage” means 83
percent.

(5) “Special local health funds” means both of the following:

(A) The total amount of assessments and fees restricted for
health-related purposes that are received by LA County DHS and
expended for health services during the fiscal year.

(B) Ninety-one percent of the funds actually received by the
County of Los Angeles during the fiscal year pursuant to the Master
Settlement Agreement and related documents entered into on
November 23, 1998, by the state and leading United States tobacco
product manufacturers, less any bond payments and other costs of
securitization related to the funds described in this paragraph.

(6) “Total costs” means the actual net expenditures, excluding
encumbrances, for all operating budget units of the LA County
DHS. Operating budget units consist of four Hospital Enterprise
Funds plus the LA County DHS’s budget units within the county
general fund. Net expenditures, excluding encumbrances, are those
recognized within LA County DHS, net of intrafund transfers,
expenditure distributions, and all other billable services recorded
from and to the LA County DHS enterprise funds and the LA
County DHS general fund budget units, determined based on its
central accounting system known as eCAPS, as of November 30
of the year following the fiscal year, and shall include the new
mandatory other entity intergovernmental transfer amounts, as
defined in subdivision (ad) of Section 17612.2, and the lesser of
other entity intergovernmental transfer amounts or the imputed
other entity intergovernmental transfer amounts.

(7) “Total revenues” means the sum of the revenue paid or
payable for all operating budget units of the LA County DHS
determined based on its central accounting system known as
eCAPS, as of November 30 of the year following the fiscal year.

(8) “LA County DHS” means operating budget units consisting
of four hospital enterprise funds plus the DHS budget units within
the county’s general fund.

SEC. 206.  

Section 17613.2 of the Welfare and Institutions
Code is amended to read:

17613.2.  

For purposes of this article, the following definitions
begin delete shall end delete apply:

(a) “Base year” means the fiscal year ending three years prior
to the fiscal year for which the redirected amount is calculated.

(b) “Blended CPI trend factor” means the blended percent
change applicable for the fiscal year that is derived from the
nonseasonally adjusted Consumer Price Index for All Urban
Consumers (CPI-U), United States City Average, for Hospital and
Related Services, weighted at 75 percent, and for Medical Care
Services, weighted at 25 percent, all as published by the United
States Bureau of Labor Statistics, computed as follows:

(1) For each prior fiscal year within the period to be trended
through the state fiscal year, the annual average of the monthly
index amounts shall be determined separately for the Hospital and
Related Services Index and the Medical Care Services Index.

(2) The year-to-year percentage changes in the annual averages
determined in paragraph (1) for each of the Hospital and Related
Services Index and the Medical Care Services Index shall be
determined.

(3) A weighted average annual percentage change for each
year-to-year period shall be calculated from the determinations
made in paragraph (2), with the percentage changes in the Hospital
and Related Services Index weighted at 75 percent, and the
percentage changes in the Medical Care Services Index weighted
at 25 percent. The resulting average annual percentage changes
shall be expressed as a fraction, and increased by 1.00.

(4) The product of the successive year-to-year amounts
determined in paragraph (3) shall be the blended CPI trend factor.

(c) “Calculated cost per person” is determined by dividing
county indigent program costs by the number of indigent program
individuals for the applicable fiscal year. If a county expands
eligibility, the enrollment count is limited to those indigent program
individuals who would have been eligible for services under the
eligibility requirements in existence on July 1, 2013, except if
approved as an exception allowed pursuant to begin delete subparagraph (3) of end delete
paragraph begin delete (C) end delete begin insert (3) end insert of subdivision (d).

(d) “Cost containment limit” means the county’s indigent
program costs determined for the 2014-15 fiscal year and each
subsequent fiscal year, to be adjusted as follows:

(1) (A) The county’s indigent program costs for the state fiscal
year shall be determined as indigent program costs for purposes
of this paragraph for the relevant fiscal period.

(B) The county’s calculated costs per person for the base year
will be multiplied by the blended CPI trend factor and then
multiplied by the county’s fiscal year indigent program individuals.
The base year costs used shall not reflect any adjustments under
this subdivision.

(C) The fiscal year amount determined in subparagraph (A)
shall be compared to the trended amount in subparagraph (B). If
the amount in subparagraph (B) exceeds the amount in
subparagraph (A), the county will be deemed to have satisfied the
cost containment limit. If the amount in subparagraph (A) exceeds
the amount in subparagraph (B), the calculation in paragraph (2)
shall be performed.

(2) If a county’s costs as determined in subparagraph (A) of
paragraph (1) exceeds the amount determined in subparagraph (B)
of paragraph (1), the following costs, as allocated to the county’s
indigent care program, shall be added to the cost and reflected in
any containment limit:

(A) Costs related to state or federally mandated activities,
requirements, or benefit changes.

(B) Costs resulting from a court order or settlement.

(C) Costs incurred as a result of a natural disaster or act of
terrorism.

(3) If a county’s costs as determined in subparagraph (A) of
paragraph (1) exceed the amount determined in subparagraph (B)
of paragraph (1), as adjusted by paragraph (2), the county may
request that the department consider other costs as adjustments to
the cost containment limit. These costs would require departmental
approval.

(e) “County” for purposes of this article means the following
counties: Fresno, Merced, Orange, Placer, Sacramento, San Diego,
San Luis Obispo, Santa Barbara, Santa Cruz, Stanislaus, Tulare,
and Yolo.

(f) “County indigent care health realignment amount” means
the product of the health realignment amount times the health
realignment indigent care percentage, as computed on a
county-specific basis.

(g) “County savings determination process” means the process
for determining the amount to be redirected in accordance with
Section 17613.1, as calculated pursuant to subdivision (a) of
Section 17613.3.

(h) “Department” means the State Department of Health Care
Services.

(i) “Health realignment amount” means the amount that, in the
absence of this article, would be payable to a county under Sections
17603, 17604, and 17606.20, as those sections read on January 1,
2012, and Section 17606.10, as it read on July 1, 2013, for the
fiscal year that is deposited by the Controller into the local health
and welfare trust fund health account of the county.

(j) “Health realignment indigent care percentage” means the
county-specific percentage determined in accordance with the
following, and established in accordance with the procedures
described in subdivision (c) of Section 17613.3:

(1) Each county shall identify the portion of that county’s health
realignment amount that was used to provide health services to
the indigent, including the indigent program individuals, for each
of the historical fiscal years, along with verifiable data in support
thereof.

(2) The amounts identified in paragraph (1) shall be expressed
as a percentage of the health realignment amount of that county
for each fiscal year of the historical fiscal years.

(3) The average of the percentages determined in paragraph (2)
shall be the county’s health realignment indigent care percentage.

(4) To the extent a county does not provide the information
required in paragraph (1) or the department determines that the
information required is insufficient, the amount under this
subdivision shall be considered to be 85 percent.

(k) All references to “health services” or “health care services,”
unless specified otherwise, shall exclude mental health and
substance use disorder services.

(l) “Historical fiscal years” means the fiscal years 2008-09 to
2011-12, inclusive.

(m) “Imputed county low-income health amount” means the
predetermined, county-specific amount of county general purpose
funds assumed, for purposes of the calculation in Section 17613.3,
to be available to the county for services to indigent program
individuals. The imputed county low-income health amount shall
be determined as set forth below and established in accordance
with subdivision (c) of Section 17613.3.

(1) For each of the historical fiscal years, an amount shall be
determined as the annual amount of county general fund
contribution provided for health services to the indigent, which
does not include funds provided for mental health and substance
use disorder services, through a methodology to be developed by
the department, in consultation with the California State
Association of Counties.

(2) If a year-to-year percentage increase in the amount
determined in paragraph (1) was present, an average annual
percentage trend factor shall be determined.

(3) The annual amounts determined in paragraph (1) shall be
averaged and multiplied by the percentage trend factor, if
applicable, determined in paragraph (2), for each fiscal year after
the 2011-12 fiscal year through the applicable fiscal year.
Notwithstanding the foregoing, if the percentage trend factor
determined in paragraph (2) is greater than the applicable
percentage change for any year of the same period in the blended
CPI trend factor, the percentage change in the blended CPI trend
factor for that year shall be used. The resulting determination is
the imputed county low-income health amount for purposes of
Section 17613.3.

(n) “Indigent program costs” means the costs incurred by the
county for purchasing, providing, or ensuring the availability of
services to indigent program individuals during the fiscal year.
The costs for mental health and substance use disorder services
shall not be included in these costs.

(o) “Indigent program individuals” means all individuals
enrolled in a county indigent health care program at any point
throughout the fiscal year. If a county does not enroll individuals
into an indigent health care program, indigent program individuals
shall mean all individuals who used services offered through the
county indigent health care program in the fiscal year.

(p) “Indigent program revenues” means self-pay payments made
by or on behalf of indigent program individuals to the county for
the services rendered in the fiscal year, but shall exclude revenues
received for mental health and substance use disorder services.

(q) “Redirected amount” means the amount to be redirected in
accordance with Section 17613.1, as calculated pursuant to
subdivision (a) of Section 17613.3.

(r) “Special local health funds” means the amount of the
following county funds received by the county for health services
to indigent program individuals during the fiscal year and shall
include funds available pursuant to the Master Settlement
Agreement and related documents entered into on November 23,
1998, by the state and leading United States tobacco product
manufacturers during a fiscal year. The amount of the tobacco
settlement funds to be used for this purpose shall be the greater of
paragraph (1) or (2), less any bond payments and other costs of
securitization related to the funds described in this subdivision.

(1) The amount of the funds expended by the county for the
provision of health services to indigent program individuals during
the fiscal year.

(2) The amount of the tobacco settlement funds multiplied by
the average of the percentages of the amount of tobacco settlement
funds that were allocated to and expended by the county for health
services to indigent program individuals during the historical fiscal
years.

SEC. 207.  

Section 17613.3 of the Welfare and Institutions
Code is amended to read:

17613.3.  

(a) For each fiscal year commencing with the
2013-14 fiscal year, the amount to be redirected in accordance
with Section 17613.1 shall be determined for each county as set
forth in this section.

(1) The county’s revenues and other funds paid or payable for
the fiscal year shall be comprised of the total of the following:

(A) Indigent program revenues.

(B) Special local health funds.

(C) The county indigent care health realignment amount.

(D) The imputed county low-income health amount.

(2) Indigent program costs incurred by the county for the fiscal
year, not to exceed in total the cost containment limit, shall be
subtracted from the sum in paragraph (1).

(3) The resulting amount shall be multiplied by 0.80, except
begin delete that end delete for the 2013-14 fiscal year where the resulting amount shall
be multiplied by 0.70.

(4) If the amount in paragraph (3) is a positive number, that
amount, subject to paragraph (5), shall be redirected in accordance
with Section 17613.1, except that for the 2013-14 fiscal year, the
amount to be redirected shall not exceed the amount determined
for the county for the 2013-14 fiscal year under subdivision (c)
of Section 17603, as that amount may have been reduced by the
application of Section 17610.5. If the amount determined in
paragraph (3) is a negative number, the redirected amount shall
be zero.

(5) Notwithstanding any other law, the amount to be redirected
as determined in paragraph (4) for a fiscal year shall not exceed
the county indigent care health realignment amount for that fiscal
year.

(6) (A) The redirected amount shall be applied until the later
of the following:

(i) June 30, 2023.

(ii) The beginning of the fiscal year following a period of two
consecutive fiscal years in which both of the following occur:

begin delete

(aa)

end delete

begin insert (I) end insert  The total interim amount determined under subdivision (b)
in May of the previous fiscal year is within 10 percent of the final,
reconciled amount in subdivision (d).

begin delete

(bb)

end delete

begin insert (II) end insert  The final, reconciled amounts under subdivision (d) are
within 5 percent of each other.

(B) After the redirected amount ceases as provided in
subparagraph (A), a permanent redirected amount shall be
established to be the amount determined by calculating the
percentage that the redirected amount was in the last fiscal year
of the operation of this article of the county’s health realignment
amount of that same fiscal year, multiplied by the county’s health
realignment amount of all subsequent years.

(b) Starting with the 2014-15 fiscal year, the department shall
calculate an interim redirected amount for each county under
subdivision (a) by the January immediately prior to the starting
fiscal year, using the most recent and accurate data available. For
purposes of the interim determinations, the cost containment limit
shall not be applied. The interim redirected amount shall be updated
in the May before the start of the fiscal year in consultation with
each county and based on any more recent and accurate data
available at that time. During the fiscal year, the interim redirected
amount will be applied pursuant to Section 17613.1.

(c) The predetermined amounts or historical percentages
described in subdivisions (j), (m), and (r) of Section 17613.2 shall
each be established in accordance with the following procedure:

(1) By October 31, 2013, each county shall determine the
amount or percentage described in the applicable subdivision, and
shall provide this calculation to the department, supported by
verifiable data and a description of how the determination was
made.

(2) If the department disagrees with the county’s determination,
the department shall confer with the county by December 15, 2013,
and shall issue its determination by January 31, 2014.

(3) If no agreement between the parties has been reached by
January 31, 2014, the department shall apply the county’s
determination when making the interim calculations pursuant to
subdivision (b), until a decision is issued pursuant to paragraph
(6).

(4)  If no agreement between the parties has been reached by
January 31, 2014, the county shall submit a petition by February
28, 2014, to the County Health Care Funding Resolution
Committee, established pursuant to Section 17600.60, to seek a
decision regarding the historical percentage or amount to be applied
in calculations under this section.

(5) The County Health Care Funding Resolution Committee
shall hear and make a determination as to whether the county’s
proposed percentage or amount complies with the requirements
of this section based on the data and calculations of the county and
any alternative data and calculations submitted by the department.

(6) The County Health Care Funding Resolution Committee
shall issue its final determination within 45 days of the petition.
If the county chooses to contest the final determination, the final
determination of the committee will be applied for purposes of
any interim calculation under subdivision (b) until a final decision
is issued pursuant to de novo administrative review under
paragraph (2) of subdivision (d).

(d) (1) The data for the final calculations under subdivision (a)
for the fiscal year shall be submitted by counties within 12 months
after the conclusion of each fiscal year as required in Section
17613.4. The data shall be the most recent and accurate data from
the county’s books and records pertaining to the revenues paid or
payable, and the costs incurred, for services provided in the subject
fiscal year. After consulting with the county, the department shall
make final calculations using the data submitted pursuant to this
paragraph by December 15 of the following fiscal year, and shall
provide its final determination to the county. The final
determination will also reflect the application of the cost
containment limit, if any. If the county and the department agree,
a revised recalculation and reconciliation may be completed by
the department within six months thereafter.

(2) The Director of Health Care Services shall establish an
expedited formal appeal process for a county to contest final
determinations made under this article. No appeal shall be available
for interim determinations made under subdivision (b). The appeals
process shall include all of the following:

(A) The county shall have 30 calendar days, following the
issuance of a final determination made under paragraph (6) of
subdivision (c) or paragraph (1) of this subdivision, to file an appeal
with the director. All appeals shall be governed by Section 100171
of the Health and Safety Code, except for those provisions of
paragraph (1) of subdivision (d) of Section 100171 of the Health
and Safety Code relating to accusations, statements of issues,
statement to respondent, and notice of defense, and except as
otherwise set forth in this section. All appeals shall be in writing
and shall be filed with the State Department of Health Care
Service’s Office of Administrative Hearings and Appeals. An
appeal shall be deemed filed on the date it is received by the Office
of Administrative Hearings and Appeals.

(i) An appeal shall specifically set forth each issue in dispute,
including, but not limited to, any component of the determination,
and include the county’s contentions as to those issues. A formal
hearing before an Office of Administrative Hearings and Appeals
Administrative Law Judge shall commence within 60 days of the
filing of the appeal requesting a formal hearing. A final decision
under this paragraph shall be adopted no later than six months
following the filing of the appeal.

(ii) If the county fails to file an appeal within 30 days of the
issuance of a determination made under this section, the
determination of the department shall be deemed final and not
appealable either administratively or to a court of general
jurisdiction, except that a county may elect to appeal a
determination under subdivision (c) within 30 days of the issuance
of the County Health Care Funding Resolution Committee’s final
determination under paragraph (6) of subdivision (c) or as a
component of an appeal of the department’s final determination
under paragraph (1) for the 2013-14 fiscal year.

(B) If a final decision under this paragraph is not issued by the
department within two years of the last day of the subject fiscal
year, the county shall be deemed to have exhausted its
administrative remedies, and shall not be precluded from pursuing
any available judicial review. However, the time period in this
subdivision shall be extended by either of the following:

(i) Undue delay caused by the county.

(ii) An extension of time granted to a county at its sole request,
or following the joint request of the county and the department.

(C) If the final decision issued by the department pursuant to
this paragraph results in a different determination than that
originally made by the department, then the Department of Finance
shall adjust the original determination by that amount, pursuant to
a process developed by the Department of Finance and in
consultation with the California State Association of Counties.

SEC. 208.  

Section 17613.4 of the Welfare and Institutions
Code is amended to read:

17613.4.  

(a) Beginning with the 2013-14 fiscal year, each
county that has elected to participate in the County Savings
Determination Process shall, within five months after the end of
each fiscal year, be required to submit initial reports on both of
the following:

(1) All revenue data required for the operation of Section
17613.3, including both of the following:

(A) Indigent program revenues.

(B) Special local health funds.

(2) All cost data required for the operation of Section 17613.3,
including indigent program costs.

(b) Counties shall submit final reports of cost and revenue data
identified in subdivision (a) to the department for begin delete the end delete each fiscal
year no later than June 30 of the fiscal year ending one year after
the subject fiscal year.

(c) The department shall develop, in consultation with begin insert the end insert
California State Association of Counties, the methodologies used
to determine the costs and revenues required to be reported and
the format of the submissions.

(d) Reports submitted under this section shall be accompanied
by a certification by an appropriate public official attesting to the
accuracy of the reports.

(e) Notwithstanding Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code,
the department, without taking any further regulatory action, shall
implement, interpret, or make specific this article by means of
all-county letters, plan letters, plan or provider bulletins, or similar
instructions.

SEC. 209.  

Section 18259.7 of the Welfare and Institutions
Code is amended to read:

18259.7.  

(a) The County of Los Angeles, contingent upon
local funding, may establish a pilot project consistent with this
chapter to develop a comprehensive, replicative, multidisciplinary
model to address the needs and effective treatment of commercially
sexually exploited minors who have been arrested or detained by
local law enforcement for a violation of subdivision (a) or (b) of
Section 647 or subdivision (a) of Section 653.22 of the Penal Code.

(b) The District Attorney of the County of Los Angeles, in
collaboration with county and community-based agencies, may
develop, as a component of the pilot project described in this
chapter, protocols for identifying and assessing minors, upon arrest
or detention by law enforcement, who may be victims of
commercial sexual exploitation.

(c) The District Attorney of the County of Los Angeles, in
collaboration with county and community-based agencies that
serve commercially sexually exploited minors, may develop, as a
component of the pilot project described in this chapter, a diversion
program reflecting the best practices to address the needs and
requirements of arrested or detained minors who have been
determined to be victims of commercial sexual exploitation.

(d) The District Attorney of the County of Los Angeles, in
collaboration with county and community-based agencies, may
form, as a component of the pilot project described in this chapter,
a multidisciplinary team including, but not limited to, city police
departments, the county sheriff’s department, the public defender’s
office, the probation department, child protective services, and
community-based organizations that work with or advocate for
commercially sexually exploited minors, to do both of the
following:

(1) Develop a training curriculum reflecting the best practices
for identifying and assessing minors who may be victims of
commercial sexual exploitation.

(2) Offer and provide this training curriculum through
multidisciplinary teams to law enforcement, child protective
services, and others who are required to respond to arrested or
detained minors who may be victims of commercial sexual
exploitation.

(e) The District Attorney begin delete for end delete begin insert of end insert the County of Los Angeles shall,
on or before April 1, 2016, submit a report to the Legislature that
summarizes the activities performed by the district attorney
pursuant to this section, so that the Legislature may determine
whether the pilot project should be extended or expanded to other
counties prior to the repeal of this chapter pursuant to Section
18259.10. The report shall, at a minimum, include the number of
sexually exploited minors, if any, diverted by the program
authorized in subdivision (c), and a summary of the types of
services and alternate treatments provided to those minors. This
report shall be contingent upon local funding, and shall be required
only if the County of Los Angeles establishes a pilot project and
the district attorney performs any of the activities of the pilot
project authorized by this chapter. The report shall not include any
information that would reveal the identity of a specific sexually
exploited minor.

SEC. 210.  

Section 18901 of the Welfare and Institutions Code
is amended to read:

18901.  

(a) The eligibility of households shall be determined
to the extent permitted by federal law.

(b) In determining eligibility for CalFresh, no minimum age
begin delete requirement end delete begin insert requirements end insert shall be imposed other than those that
exist under federal law.

SEC. 211.  

Section 2 of Chapter 489 of the Statutes of 2001,
as amended by Section 3 of Chapter 381 of the Statutes of 2013,
is amended to read:

Sec. 2.  

The Legislature finds and declares all of the following:

(a) Tide and submerged lands in California are held in trust for
the enjoyment and use by the people of the state pursuant to the
California Constitution, state statutes, and the common law public
trust doctrine. Public trust lands may be used for water-related
purposes, including, but not limited to, commerce, navigation,
fishing, swimming, recreation, open space, and wildlife habitat.

(b) In 1965, the Legislature adopted the McAteer-Petris Act to
protect and enhance the San Francisco Bay and its natural
resources. Among other things, the McAteer-Petris Act grants
begin delete BCDC end delete begin insert the San Francisco Bay Conservation and Development
District (BCDC) end insert regulatory authority over further filling in San
Francisco Bay through exercise of its bay jurisdiction, and limits
that activity to (1) water-oriented uses that meet specified criteria;
(2) minor fill that improves shoreline appearance or public access;
and (3) activities necessary for the health, safety, and welfare of
the public in the entire bay area. The McAteer-Petris Act also
mandates BCDC to require the provision of maximum feasible
access to the bay and its shoreline consistent with a project.

(c) In 1969, the Legislature received and acted upon BCDC’s
report and recommendations from a three-year study of the San
Francisco Bay. The resulting Bay Plan contains, among other
things, BCDC’s policies to guide use and protection of all areas
within BCDC’s jurisdiction, including the bay and the 100-foot
shoreline band, and ensures that proposed projects, among other
things, minimize bay fill and provide maximum feasible public
access to the bay.

(d) In 1969, pursuant to the Burton Act, the state conveyed by
transfer agreement certain state tide and submerged lands to the
Port. The lands are held by the Port in trust for the people of
California to further the purposes of commerce, navigation, and
fisheries, and are subject to the terms and conditions specified in
the Burton Act and the public trust. During the four decades since
passage of the Burton Act, issues have arisen concerning the
application of the McAteer-Petris Act to the piers along the San
Francisco waterfront. To address those issues, BCDC and the Port
undertook two intensive and careful planning processes, which
lasted over nine years.

(e) The first process culminated in 1997 with the adoption by
the Port of the Waterfront Land Use Plan and with the adoption
by the Board of Supervisors of the City and County of San
Francisco and the Planning Commission of the City and County
begin insert of San Francisco end insert of conforming amendments to the city’s General
Plan and Planning Code.

(f) In July 2000, after the second five-year cooperative process
involving the Port, BCDC, the Save San Francisco Bay
Association, and numerous interested community groups and
individuals was completed, the Port adopted further amendments
to the Waterfront Land Use Plan. BCDC also adopted amendments
to the Special Area Plan that is incorporated into, and made a part
of, the Bay Plan, to create consistent plans for the area of the San
Francisco waterfront between Pier 35 and China Basin. At the
present time, the Special Area Plan addresses specific
McAteer-Petris Act issues relating to public access and the
preservation and enhancement of open water as a bay resource in
this area. The plan also defines public access opportunities on each
pier in this area and calls for the removal of certain additional piers
to enhance water views and create additional bay surface area.

(g) A major objective of the joint effort described in subdivisions
(d), (e), and (f) is to establish a new criterion in the Bay Plan that
would permit fill on the San Francisco waterfront in an area where
a Special Area Plan has been adopted by BCDC for uses that are
consistent with the public trust and the Burton Act trust. The
Special Area Plan for the area between Pier 35 and China Basin
provides, in part, for all of following:

(1) The nature and extent of maximum feasible public access
to the begin delete bays end delete begin insert bay end insert and the waterfront, including perimeter access at
the piers, a system of integrated public parks, promenades, a
Bayside History Walk on most piers, and other significant access
features on piers where appropriate.

(2) Two major public plazas, the Brannan Street Wharf adjacent
to Pier 30-32 and a new plaza at Pier 27.

(3) A public planning process to lead to the creation of a third
major public plaza in the Fisherman’s Wharf area.

(4) The restoration and preservation of significant open water
basins and areas through the removal of certain piers to uncover
additional bay surface and the restriction of new bay fill in open
water basins and areas to minor amounts needed to improve public
access and shoreline appearance and accommodate permissible
water-oriented uses.

(5) The creation and funding of a special fund within the Port
to finance the removal of the selected piers and the construction
and maintenance of those public plazas.

(6) A historic preservation mechanism to ensure preservation
and enhancement of important historic resources on the piers,
including the designation begin delete of end delete begin insert on end insert the National Register begin insert of Historic
Places of the end insert Embarcadero Historic District.

(7) The preservation and improvement of existing views and
creation of new views of the bay from the shoreline.

(8) The ability of the Port to repair, improve, or use the piers
not designated for removal between Pier 35 and China Basin for
any purpose consistent with the Burton Act, the public trust, and
the Special Area Plan.

(h) The San Francisco waterfront, which has been the subject
of this planning process, provides benefits to the entire bay area,
and serves as a unique destination for the state and region’s public.
These state and region wide benefits include enjoyment of a unique,
publicly owned waterfront that provides special maritime,
navigational, recreational, cultural, and historical benefits that
serve the bay area. Accordingly, the adoption by BCDC, and the
ratification by the Legislature, of the Special Area Plan, as
amended, is necessary to protect the health, safety, and welfare of
the public in the entire bay area for purposes of subdivision (f) of
Section 66632 of the Government Code.

(i) The Port is a valuable public trust asset, a vibrant and
world-renowned tourist destination, and a vital component of the
regional, state, and national economies. The Port faces unique
challenges in implementing the Waterfront Land Use Plan.
Deferred maintenance on the Port’s numerous historic piers and
other structures, together with limitations on revenue generating
opportunities, has caused deteriorating conditions along the San
Francisco waterfront. The Port’s estimate of the cost of
implementing its capital plan is over two billion dollars
($2,000,000,000), which substantially exceeds the projected
revenues estimated by the Port to be available for these purposes.

SEC. 212.  

Section 34 of Chapter 37 of the Statutes of 2013 is
amended to read:

Sec. 34.  

(a) At least 30 days prior to enrollment of beneficiaries
into the Coordinated Care Initiative, the Director of Finance shall
estimate the amount of net General Fund savings obtained from
the implementation of the Coordinated Care Initiative. This
estimate shall take into account any net savings to the General
Fund achieved through the tax imposed pursuant to Article 5
(commencing with Section 6174) of Chapter 2 of Part 1 of Division
2 of the Revenue and Taxation Code begin delete Article 5 (commencing with
Section 6174) end delete .

(b) (1) By January 10 for each fiscal year after implementation
of the Coordinated Care Initiative, for as long as the Coordinated
Care Initiative remains operative, the Director of Finance shall
estimate the amount of net General Fund savings obtained from
the implementation of the Coordinated Care Initiative.

(2) Savings shall be determined under this subdivision by
comparing the estimated costs of the Coordinated Care Initiative,
as approved by the federal government, and the estimated costs of
the program if the Coordinated Care Initiative were not operative.
The determination shall also include any net savings to the General
Fund achieved through the tax imposed pursuant to Article 5
(commencing with Section 6174) of Chapter 2 of Part 1 of Division
2 of the Revenue and Taxation Code.

(3) The estimates prepared by the Director of Finance, in
consultation with the Director of Health Care Services, shall be
provided to the Legislature.

(c) (1) Notwithstanding any other law, if, at least 30 days prior
to enrollment of beneficiaries into the Coordinated Care Initiative,
the Director of Finance estimates pursuant to subdivision (a) that
the Coordinated Care Initiative will not generate net General Fund
savings, then the activities to implement the Coordinated Care
Initiative shall be suspended immediately and the Coordinated
Care Initiative shall become inoperative July 1, 2014.

(2) If the Coordinated Care Initiative becomes inoperative
pursuant to this subdivision, the Director of Health Care Services
shall provide any necessary notifications to any affected entities.

(3) For purposes of this subdivision and subdivision (d) only,
“Coordinated Care Initiative” means all of the following statutes
and any amendments to the following:

(A) Sections 14132.275, 14183.6, and 14301.1 of the Welfare
and Institutions Code, as amended by this act.

(B) Sections 14132.276, 14132.277, 14182.16, 14182.17,
14182.18, and 14301.2 of the Welfare and Institutions Code.

(C) Article 5.7 (commencing with Section 14186) of Chapter
7 of Part 3 of Division 9 of the Welfare and Institutions Code.

(D) Title 23 (commencing with Section 110000) of the
Government Code.

(E) Section 6531.5 of the Government Code.

(F) Section 6253.2 of the Government Code, as amended by
this act.

(G) Sections 12300.5, 12300.6, 12300.7, 12302.6, 12306.15,
12330, 14186.35, and 14186.36 of the Welfare and Institutions
Code.

(H) Sections 10101.1, 12306, and 12306.1 of the Welfare and
Institutions Code, as amended by this act.

(I) The amendments made to Sections 12302.21 and 12302.25
of the Welfare and Institutions Code, as made by Chapter 439 of
the Statutes of 2012.

(d) (1) Notwithstanding any other law, and beginning in 2015,
if the Director of Finance estimates pursuant to subdivision (b)
that the Coordinated Care Initiative will not generate net General
Fund savings, the Coordinated Care Initiative shall become
inoperative January 1 of the following calendar year, except as
follows:

(A) Section 12306.15 of the Welfare and Institutions Code shall
become inoperative as of July 1 of that same calendar year.

(B) For any agreement that has been negotiated and approved
by the Statewide Authority, the Statewide Authority shall continue
to retain its authority pursuant to Section 6531.5 and Title 23
(commencing with Section 110000) of the Government Code and
Sections 12300.5, 12300.6, 12300.7, and 12302.6 of the Welfare
and Institutions Code, and shall remain the employer of record for
all individual providers covered by the agreement until the
agreement expires or is subject to renegotiation, whereby the
authority of the Statewide Authority shall terminate and the county
shall be the employer of record in accordance with Section
12302.25 of the Welfare and Institutions Code and may establish
an employer of record pursuant to Section 12301.6 of the Welfare
and Institutions Code.

(C) For an agreement that has been assumed by the Statewide
Authority that was negotiated and approved by a predecessor
agency, the Statewide Authority shall cease being the employer
of record and the county shall be reestablished as the employer of
record for purposes of bargaining and in accordance with Section
12302.25 of the Welfare and Institutions Code, and may establish
an employer of record pursuant to Section 12301.6 of the Welfare
and Institutions Code.

(2) If the Coordinated Care Initiative becomes inoperative
pursuant to this subdivision, the Director of Health Care Services
shall provide any necessary notifications to any affected entities.

SEC. 213.  

Section 1 of Chapter 391 of the Statutes of 2013 is
amended to read:

Section 1.  

The Legislature finds and declares that the purpose
of this act is to approve an agreement pursuant to Section 3517.5
of the Government Code entered into by the state employer and
State Bargaining Units 6, 7, begin insert 9, end insert 12, 16, 18, and 19.

SEC. 214.  

Section 5 of Chapter 391 of the Statutes of 2013 is
amended to read:

Sec. 5.  

(a) The sum of fourteen million eight hundred
forty-nine thousand dollars ($14,849,000) is hereby appropriated
for State Bargaining Unit 6 for expenditure in the 2013-14 fiscal
year in augmentation of, and for the purpose of, state employee
compensation, as provided in items 9800-001-0001,
9800-001-0494, and 9800-001-0988 of Section 2.00 of the Budget
Act of 2013 begin delete (Chapter 20 end delete begin insert (Chapters 20 and 354 end insert of the Statutes of
2013) in accordance with the following schedule:

(1) Fourteen million seven hundred forty-six thousand dollars
($14,746,000) from the General Fund in augmentation of Item
9800-001-0001.

(2) Sixty-nine thousand dollars ($69,000) from unallocated
special funds in augmentation of Item 9800-001-0494.

(3) Thirty-four thousand dollars ($34,000) from other
unallocated nongovernmental cost funds in augmentation of Item
9800-001-0988.

(b) The sum of one million eighty-four thousand dollars
($1,084,000) is hereby appropriated for State Bargaining Unit 7
for expenditure in the 2013-14 fiscal year in augmentation of, and
for the purpose of, state employee compensation, as provided in
items 9800-001-0001, 9800-001-0494, and 9800-001-0988 of
Section 2.0 of the Budget Act of 2013 begin delete (Chapter 20 end delete begin insert (Chapters 20
and 354 end insert of the Statutes of 2013) in accordance with the following
schedule:

(1) Three hundred twenty thousand dollars ($320,000) from the
General Fund in augmentation of Item 9800-001-0001.

(2) Five hundred twelve thousand dollars ($512,000) from
unallocated special funds in augmentation of Item 9800-001-0494.

(3) Two hundred fifty-two thousand dollars ($252,000) from
other unallocated nongovernmental cost funds in augmentation of
item 9800-001-0988.

(c) The sum of one million five hundred ninety-seven thousand
dollars ($1,597,000) is hereby appropriated for State Bargaining
Unit 12 for expenditure in the 2013-14 fiscal year in augmentation
of, and for the purpose of, state employee compensation as
provided in items 9800-001-0001, 9800-001-0494, and
9800-001-0988 of Section 2.0 of the Budget Act of 2013 begin delete (Chapter
20 end delete begin insert (Chapters 20 and 354 end insert of the Statutes of 2013) in accordance
with the following schedule:

(1) Five hundred sixteen thousand dollars ($516,000) from the
General Fund in augmentation of Item 9800-001-0001.

(2) Seven hundred twenty-four thousand dollars ($724,000)
from unallocated special funds in augmentation of Item
9800-001-0494.

(3) Three hundred fifty-seven thousand dollars ($357,000) from
other unallocated nongovernmental cost funds in augmentation of
Item 9800-001-0988.

(d) The sum of one million five thousand dollars ($1,005,000)
is hereby appropriated for State Bargaining Unit 18 for expenditure
in the 2013-14 fiscal year in augmentation of, and for the purpose
of, state employee compensation as provided in items
9800-001-0001, 9800-001-0494, and 9800-001-0988 of Section
2.0 of the Budget Act of 2013 begin delete (Chapter 20 end delete begin insert (Chapters 20 and 354 end insert
of the Statutes of 2013) in accordance with the following schedule:

(1) Nine hundred twenty-four thousand dollars ($924,000) from
the General Fund in augmentation of Item 9800-001-0001.

(2) Fifty-four thousand dollars ($54,000) from unallocated
special funds in augmentation of Item 9800-001-0494.

(3) Twenty-seven thousand dollars ($27,000) from other
unallocated nongovernmental cost funds in augmentation of Item
9800-001-0988.

(e) The sum of three thousand dollars ($3,000) is hereby
appropriated for State Bargaining Unit 19 for expenditure in the
2013-14 fiscal year in augmentation of, and for the purpose of,
state employee compensation as provided in items 9800-001-0001,
9800-001-0494, and 9800-001-0988 of Section 2.00 of the Budget
Act of 2013, begin delete (Chapter 20 end delete begin insert (Chapters 20 and 354 end insert of the Statutes of
2013) in accordance with the following schedule:

(1) Three thousand dollars ($3,000) from the General Fund in
augmentation of Item 9800-001-0001.

(2) Zero dollars ($0) from unallocated special funds in
argumentation of Item 9800-001-0494.

(3) Zero dollars ($0) from other unallocated nongovernmental
cost funds in augmentation of Item 9800-001-0988.

SEC. 215.  

Section 2 of Chapter 653 of the Statutes of 2013 is
amended to read:

Sec. 2.  

It is the intent of the Legislature that the changes made
to law by this act shall only affect specified professional athletes
and employers of specified professional athletes. The changes
made to law by this act shall not affect any other employer or
employee in begin delete the State of end delete California.

SEC. 216.  

Any section of any act enacted by the Legislature
during the 2014 calendar year that takes effect on or before January
1, 2015, and that amends, amends and renumbers, adds, repeals
and adds, or repeals a section that is amended, amended and
renumbered, added, repealed and added, or repealed by this act,
shall prevail over this act, whether that act is enacted prior to, or
subsequent to, the enactment of this act. The repeal, or repeal and
addition, of any article, chapter, part, title, or division of any code
by this act shall not become operative if any section of any other
act that is enacted by the Legislature during the 2014 calendar year
and takes effect on or before January 1, 2015, amends, amends
and renumbers, adds, repeals and adds, or repeals any section
contained in that article, chapter, part, title, or division.