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

SECTION 1.
Section 19006 of the Revenue and Taxation Code is amended to read:
19006.
(a) The spouse who controls the disposition of or who receives or spends community income as well as the spouse who is taxable on the income is liable for the payment of the taxes imposed by Part 10 (commencing with Section 17001) on that income.
(b) (1) Whenever a joint return is filed by a husband and wife, the liability for the tax on the aggregate income is joint and several.
(2) The amount of liability on a joint return may not be reduced, but a court in a proceeding for dissolution of the marriage may determine the individual responsible for all or part of the liability, provided the order revising tax liability on the joint return:
(A) Must separately state the income tax liabilities for the taxable years for which revision of tax liability is granted.
(B) Shall not revise a tax liability that has been fully paid prior to the effective date of the order; however, any unpaid amount may be revised.
(C) Shall become effective when the Franchise Tax Board is served with or acknowledges receipt of the order.
(D) (i) Shall not be effective if the gross income reportable on the return exceeds two hundred thousand dollars ($200,000) or the amount of tax liability the spouse is relieved of exceeds ten thousand dollars ($10,000), unless a tax revision clearance certificate is obtained from the Franchise Tax Board and filed with the court.
(ii) Beginning on January 1, 2018, and annually thereafter, the amounts specified in clause (i) shall be recomputed in accordance with subparagraph (B) of paragraph (3) of subdivision (b) of Section 19442, modified by substituting “January 1, 2018” for “January 1, 2004.”
(E) Shall not be effective to relieve a spouse of the tax liability on income earned by or subject to the exclusive management and control of that spouse if either of the following applies:
(i) Assets or liabilities are transferred between the individuals filing the joint return for the principal purpose of avoidance of the payment of tax or as part of a fraudulent scheme by those individuals.
(ii) That liability is uncollectible and, within three years of the date the court order is effective pursuant to subparagraph (C), either of the following also applies:
(I) The spouse obligated to pay that liability pursuant to the court order files for bankruptcy and that liability is discharged in bankruptcy.
(II) The spouse obligated to pay that liability pursuant to the court order becomes a nonresident.
(c) Notwithstanding subdivision (a) or paragraph (1) of subdivision (b), whenever a joint return is filed by a husband and wife and the tax liability is not fully paid, that liability, including interest and penalties, may be revised by the Franchise Tax Board as to one spouse.
(1) However, the liability shall not be revised:
(A) To relieve a spouse of tax liability on income earned by or subject to the exclusive management and control of the spouse. The liability of the spouse for the tax, penalties, and interest due for the taxable year shall be in the same ratio to total tax, penalties, and interest due for the taxable year as the income earned by or subject to the management and control of the spouse is to total gross income reportable on the return.
(B) To relieve a spouse of liability below the amount actually paid on the liability prior to the granting of relief, including credit from any other taxable year available for application to the liability.
(2) The liability may be revised only if the spouse whose liability is to be revised establishes that he or she did not know of, and had no reason to know of, the nonpayment at the time the return was filed. For purposes of this paragraph, “reason to know” means whether or not a reasonably prudent person would have had reason to know of the nonpayment.
(3) The determination of the Franchise Tax Board as to whether the liability is to be revised as to one spouse shall be made not less than 30 days after notification of the other spouse and shall be based upon whether, under all of the facts and circumstances surrounding the nonpayment, it would be inequitable to hold the spouse requesting revision liable for the nonpayment. Any action taken under this section shall be treated as though it were action on a protest taken under Section 19044 and shall become final upon the expiration of 30 days from the date that notice of the action is mailed to both spouses, unless, within that 30-day period, one or both spouses appeal the determination to the board as provided in Section 19045.
(4) This subdivision shall apply to all taxable years subject to the provisions of this part, but shall not apply to any taxable year which has been closed by a statute of limitations, res judicata, or otherwise.
(d) For purposes of this section, the determination of the spouse to whom items of gross income are attributable shall be made without regard to community property laws.
(e) The amendments made to this section by the act adding this subdivision shall apply to court orders served or acknowledged on or after the effective date of that act.

Summary: Existing law generally provides that the spouse or partner who controls the disposition of or who receives or spends community income, as well as the spouse who is taxable on the income, is liable for the payment of the taxes imposed by the Personal Income Tax Law on that income, and that whenever a joint income tax return is filed by spouses or registered domestic partners the liability for the tax is joint and several. Existing law allows, under specified conditions, a court in a proceeding for dissolution of marriage to revise the income tax liabilities on a joint return of spouses or registered domestic partners, but prohibits revisions to relieve a spouse or domestic partner of tax liability on income earned by or subject to the exclusive management and control of the spouse or domestic partner. Existing law also provides that the order revising tax liability is not effective if the gross income reportable on the return exceeds $150,000 or the amount of the tax liability the spouse is relieved of exceeds $7,500, except as specified. This bill would instead provide that an order revising tax liability may relieve a spouse or domestic partner of tax liability on income earned by or subject to the exclusive management and control of that spouse or domestic partner, except if assets or liabilities are transferred between the individuals filing the joint return for the principal purpose of avoidance of the payment of tax or as part of a fraudulent scheme by those individuals or that liability is uncollectible or if, within 3 years of when the court order is effective, specified conditions apply. This bill would also instead provide that the order revising tax liability is not effective if the gross income reportable on the return exceeds $200,000 or the amount of the tax liability the spouse is relieved of exceeds $10,000, except as specified, and would require those amounts to be recomputed annually beginning on January 1, 2018, as specified. The bill would apply to court orders served or acknowledged on or after the effective date of this bill.

An act to amend Section 19006 of the Revenue and Taxation Code, relating to taxation.


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

SECTION 1.
The Legislature finds and declares all of the following:
(a) The Safe Neighborhoods and Schools Act, approved as Proposition 47 by the voters at the November 4, 2014, statewide general election (the act), made significant changes to the state’s criminal justice system by reducing the penalties for certain nonviolent, nonserious drug and property crimes. The act requires the state savings realized from these criminal justice changes to be deposited in the Safe Neighborhoods and Schools Fund and spent on prevention and support services with the intent of reducing crime, including truancy and dropout prevention.
(b) The act requires 25 percent of the moneys deposited in the Safe Neighborhoods and Schools Fund to be allocated to the State Department of Education for administration of a grant program to reduce truancy and support pupils who are at risk of dropping out of school or who are victims of crime.
(c) In accordance with the act, the funding provided to K–12 education should be used to help build the capacity of local educational agencies to identify and implement evidence-based, nonpunitive programs and practices to keep our most vulnerable pupils in school, consistent with each local educational agency’s local control and accountability plan, including, but not limited to, its goals for pupil engagement and school climate.
(d) California needs to increase the knowledge base concerning which strategies are most effective for improving pupil success and eliminating the school-to-prison pipeline, including, but not necessarily limited to, providing resources to local educational agencies to establish community schools and address pupil attendance problems in kindergarten and grades 1 to 3, inclusive. One manner in which this can be accomplished is for the local educational agencies participating in the K–12 education grant program pursuant to the act to report and evaluate outcomes using multiple measures, while engaging in a broader community of practice that disseminates promising and proven strategies to local educational agencies statewide.
SEC. 2.
Article 10 (commencing with Section 33430) is added to Chapter 3 of Part 20 of Division 2 of Title 2 of the Education Code, to read:
Article  10. The Learning Communities for School Success Program
33430.
The Learning Communities for School Success Program is hereby established for the purpose of implementing, pursuant to paragraph (1) of subdivision (a) of Section 7599.2 of the Government Code, the K–12 education portion of the Safe Neighborhoods and Schools Act, as approved as Proposition 47 by the voters at the November 4, 2014, statewide general election. Through this program, the department shall administer grants and coordinate assistance to local educational agencies to support the local educational agencies in identifying and implementing evidence-based, nonpunitive programs and practices that are aligned with the goals for pupils contained in each of the local educational agency’s local control and accountability plan pursuant to Section 47606.5, 52060, or 52066, as applicable.
33431.
(a) A local educational agency that chooses to apply for funding pursuant to this article shall submit an application to the department to receive a grant, in a format and by a date determined by the department. An application submitted to the department by a local educational agency shall include, at a minimum, all of the following:
(1) Information about the pupil and school needs within the local educational agency.
(2) The activities the local educational agency will undertake with the grant funding.
(3) How the activities specified in paragraph (2) support the local educational agency’s goals for pupils contained in its local control and accountability plan.
(4) How the local educational agency will measure outcomes associated with the activities specified in subdivision (e) and metrics reported in the local educational agency’s local control and accountability plan.
(b) An application shall be for three years of grant funding. Consistent with the provisions of this article, the department may establish requirements for grantees to meet at the end of the first and second years of funding in order to receive funding for the remaining grant period.
(c) The department shall determine eligibility for grants and the distribution of grant funding based on all of the following factors:
(1) Pupil and school needs the local educational agency will address with the grant funds.
(2) Number of pupils to be served with the grant funds.
(3) Number, size, and type of participating schools within the local educational agency.
(4) Any challenges the local educational agency experiences in building capacity for fulfilling the purposes of this article.
(5) The unique characteristics of small school districts, given their challenges with economies of scale and access to services in rural locations.
(d) (1) Before the initial application deadline, the department shall conduct targeted outreach to local educational agencies that are likely to be given priority pursuant to subdivision (b) of Section 33432 and shall offer the local educational agencies technical assistance as they develop their grant applications.
(2) The department may provide technical assistance with application development to any local educational agency that requests assistance. This may include assistance from external entities the department may contract with as part of the training and technical assistance structure established pursuant to Section 33433.
(e) The department shall issue application guidelines that include, at a minimum, information about the department’s plans for overall evaluation of the program considering the objectives identified in Section 33434. For purposes of facilitating program evaluation, the department, in consultation with the executive director of the state board, shall identify a set of measures and associated data sources that are deemed valid and reliable for measuring pupil and school outcomes and assessing the benefits of the program.
(f) In meeting the requirements of this section, the department shall consult with stakeholders, including, but not limited to, representatives of local educational agencies, teachers and other school personnel, parents, advocacy organizations with experience working with target vulnerable populations, and parent- and youth-serving community-based organizations. It the intent of the Legislature that stakeholders provide input to the department on the design of the application and review process, including the size of the grant awards. The stakeholders shall not be involved in determining who will be awarded grants.
33432.
(a) A local educational agency that receives a grant shall use the grant funds for planning, implementation, and evaluation of activities in support of evidence-based, nonpunitive programs and practices to keep the state’s most vulnerable pupils in school. These activities shall complement or enhance the actions and services identified to meet the local educational agency’s goals as identified in its local control and accountability plan pursuant to Section 47606.5, 52060, or 52066, as applicable. These activities may include, but are not limited to, all of the following:
(1) Establishing a community school, as defined in Section 33435.
(2) Implementing activities or programs to improve attendance and reduce chronic absenteeism, including, but not limited to, early warning systems or early intervention programs.
(3) Implementing restorative practices, restorative justice models, or other programs to improve retention rates, reduce suspensions and other school removals, and reduce the referral of pupils to law enforcement agencies.
(4) Implementing activities that advance social-emotional learning, positive behavior interventions and supports, culturally responsive practices, and trauma-informed strategies.
(5) Establishing partnerships with community-based organizations or other relevant entities to support the implementation of evidence-based, nonpunitive approaches to further the goals of the program.
(6) Adding or increasing staff within a local educational agency whose primary purpose is to address ongoing chronic attendance problems, including, but not necessarily limited to, conducting outreach to families and children currently, or at risk of becoming, chronically truant.
(b) In selecting grant recipients pursuant to this article, the department shall give priority to a local educational agency that meets any of the following criteria:
(1) (A) Has a high rate of chronic absenteeism, out-of-school suspension, or school dropout for the general pupil population or for a numerically significant pupil subgroup, as identified in a local control and accountability plan pursuant to paragraphs (2) and (3) of subdivision (a) of Section 52052.
(B) For purposes of this paragraph, “high rate” means a rate that exceeds the state average.
(2) Is located in a community with a high crime rate.
(3) Has a significant representation of foster youth among its pupil enrollment.
(c) A local educational agency that receives a grant shall provide a local contribution of matching expenditures equal to at least 20 percent of the total grant award. This local contribution can be from cash expenditures or in-kind contributions. A local educational agency is encouraged to exceed the 20-percent match requirement to enable the local educational agency to sustain the activities or programs established under this article beyond the three-year grant period.
(d) A local educational agency that receives a grant shall use the grant funds to increase or improve services that the local educational agency currently provides for purposes specified in this article.
(e) A local educational agency shall not use grant funds to pay for law enforcement activities, including personnel or equipment.
33433.
(a) The department shall use the funding the Safe Neighborhoods and Schools Act authorizes for administrative costs pursuant to subdivision (b) of Section 7599.2 of the Government Code, which is no more than 5 percent of the annual funding the department receives from the Safe Neighborhoods and Schools Fund, for the administrative costs of implementing this article, including, but not limited to, administering grant awards, coordinating the training and technical assistance structure described in subdivision (b), and completing the evaluation pursuant to Section 33434.
(b) The department shall establish a structure to deliver training and technical assistance to grantees using regional workshops and technical assistance providers that have expertise on pupil engagement, school climate, truancy reduction, and supporting pupils who are at risk of dropping out of school or who are victims of crime. The department may contract with those providers to assist the grantees as well as to serve as a resource for other local educational agencies that may use their own funding sources to engage in this community of practice. Technical assistance provided pursuant to this subdivision shall be consistent with the technical assistance provided to a local educational agency by the county superintendent of schools or the Superintendent, as appropriate, in the development of the local control and accountability plan.
33434.
(a) A local educational agency that receives grant funding pursuant to this article shall evaluate and report to the governing board of the school district, the county board of education, or its chartering authority, as applicable, and the department the results of the activities it undertakes pursuant to this article. The department shall compile information from grantee reports as part of an overall evaluation of the grant program implementation. The department shall assess the benefits of participation in the program and identify the pupil and school outcomes associated with the strategies and programs implemented by grantees. The department shall submit an interim report of preliminary evaluation findings to the Legislature on or before January 31, 2019, and a final evaluation report to the Legislature on or before January 31, 2020.
(b) (1) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.
(2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 31, 2024.
33435.
For purposes of this article, the following definitions apply:
(a) “Community school” means a public school that participates in a community-based effort to coordinate and integrate educational, developmental, family, health, and other comprehensive services through community-based organizations and public and private partnerships with one or more community partners for the delivery of community services that may be provided at a schoolsite to pupils, families, and community members.
(b) “Local educational agency” means a school district, county office of education, or charter school.
33436.
This article shall not become operative unless funds are appropriated in the annual Budget Act or another statute to the Safe Neighborhoods and Schools Fund in accordance with the Safe Neighborhoods and Schools Act for the purposes specified in this article.
SEC. 3.
Sections 1 and 2 of this act shall become operative only if Assembly Bill 1014 of the 2015–16 Regular Session is chaptered and becomes operative on or before January 1, 2017.

Summary: Existing law, the Safe Neighborhoods and Schools Act, enacted by Proposition 47, as approved by the voters at the November 4, 2014, statewide general election, among other things, established the Safe Neighborhoods and Schools Fund, a continuously appropriated fund, which is funded by savings that accrue to the state from the implementation of the act. The act provides that, among other purposes, 25 of the funds shall be disbursed to the State Department of Education to administer a grant program to public agencies aimed at improving outcomes for public school pupils by reducing truancy and supporting pupils who are at risk of dropping out of school or are victims of crime. This bill would establish the Learning Communities for School Success Program for the purpose of implementing that grant program, subject to an appropriation to the Safe Neighborhoods and Schools Fund in the annual Budget Act or another statute for the purposes of the bill. The bill would specify the administrative duties and responsibilities of the department with respect to the program, including administering grants and coordinating assistance to local educational agencies, as defined. The bill would set forth criteria to guide the department in awarding grants under the program, and would specify the purposes for which grant funds may be used. The bill would require the department to submit a final evaluation of the program to the Legislature on or before January 31, 2020. These provisions would become operative only if AB 1014 of the 2015–16 Regular Session is chaptered and becomes operative on or before January 1, 2017.

An act to add Article 10 (commencing with Section 33430) to Chapter 3 of Part 20 of Division 2 of Title 2 of, and to repeal Section 33434 of, the Education Code, relating to education finance.


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

SECTION 1.
Section 467.5 of the Vehicle Code is amended to read:
467.5.
“Pedicab” means any of the following:
(a) A bicycle that has three or more wheels, that transports, or is capable of transporting, passengers on seats attached to the bicycle, that is operated by a person, and that is being used for transporting passengers for hire.
(b) A bicycle that pulls a trailer, sidecar, or similar device, that transports, or is capable of transporting, passengers on seats attached to the trailer, sidecar, or similar device, that is operated by a person, and that is being used for transporting passengers for hire.
(c) A four-wheeled device that is primarily or exclusively pedal-powered, has a seating capacity for eight or more passengers, cannot travel in excess of 15 miles per hour, and is being used for transporting passengers for hire. A pedicab defined under this subdivision is subject to the requirements of Article 4.5 (commencing with Section 21215) of Chapter 1 of Division 11.
SEC. 2.
Article 4.5 (commencing with Section 21215) is added to Chapter 1 of Division 11 of the Vehicle Code, to read:
Article  4.5. Operation of Pedicabs
21215.
(a) A pedicab defined in subdivision (c) of Section 467.5 shall operate subject to all of the following requirements:
(1) The pedicab shall have a seating capacity for not more than 15 passengers.
(2) The pedicab shall be authorized by local ordinance or resolution to operate within the applicable local jurisdiction.
(3) The operator of the pedicab shall be at least 21 years of age, with a valid California driver’s license.
(4) The pedicab shall be equipped with seatbelts for all passengers, seat backs, brakes, reflectors, headlights, and grab rails. The pedicab shall be inspected annually for compliance with the requirements of this paragraph by an entity designated by the local jurisdiction that authorized the pedicab to operate. The entity may charge a reasonable fee to cover the costs of the inspection. A pedicab that does not meet these requirements shall meet these requirements by January 1, 2017, in order to continue operation.
(5) The operator of the pedicab shall at all times be able to establish financial responsibility in a minimum amount of one million dollars ($1,000,000) general liability insurance coverage and an additional five hundred thousand dollars ($500,000) general umbrella insurance that covers the pedicab. The local jurisdiction that authorized the pedicab to operate may require additional proof of financial responsibility.
(6) A pedicab shall not operate on any highway under the jurisdiction of the local authority unless authorized by resolution or ordinance. A pedicab shall not operate on any freeway and shall not operate on any highway with a posted speed limit in excess of 30 miles per hour, except to cross the highway at an intersection.
(7) The operator of the pedicab shall annually report to the Department of the California Highway Patrol, commencing on January 1, 2016, any accidents caused or experienced by the pedicabs.
(8) The pedicab shall not load or unload passengers on roadways or in the middle of highways.
(9) Pedicabs shall be operated as close as practicable to the right-hand curb or edge of the roadway, except when necessary to overtake another vehicle, to avoid a stationary object, or when preparing to make a left turn.
(b) This article only applies to pedicabs defined by subdivision (c) of Section 467.5, and does not apply to pedicabs defined in subdivision (a) or (b) of Section 467.5.
21215.2.
(a) If alcoholic beverages are consumed on board the pedicab, a pedicab defined in subdivision (c) of Section 467.5 shall additionally operate subject to all of the following requirements:
(1) The consumption of alcoholic beverages onboard the pedicab shall be authorized by local ordinance or resolution.
(2) An onboard safety monitor who is 21 years of age or older shall be present whenever alcohol is being consumed by passengers during the operation of the pedicab. The onboard safety monitor shall not be under the influence of any alcoholic beverage and shall be considered as driving the pedicab for purposes of Article 2 (commencing with Section 23152) of Chapter 12 of Division 11 during the operation of the pedicab.
(3) Both the operator and safety monitor shall have completed either the Licensee Education on Alcohol and Drugs (LEAD) program implemented by the Department of Alcoholic Beverage Control or a training course utilizing the curriculum components recommended by the Responsible Beverage Service Advisory Board established by the Director of Alcoholic Beverage Control.
(4) Alcoholic beverages shall not be provided by the operator or onboard safety monitor or any employee or agent of the operator or onboard safety monitor of the pedicab. Alcoholic beverages may only be supplied by the passengers of the pedicab. All alcoholic beverages supplied by passengers of the pedicab shall be in enclosed, sealed, and unopened containers that have been labeled pursuant to Chapter 13 (commencing with Section 25170) of Division 9 of the Business and Professions Code prior to their consumption on board the pedicab.
(5) Alcoholic beverages may be consumed by a passenger of the pedicab only while he or she is physically on board and within the pedicab.
(6) All passengers shall be 21 years of age or older if alcohol is consumed during the operation of the pedicab.
(7) For purposes of this subdivision, passengers who are pedaling the device are not operators.
(b) A license or permit from the Department of Alcoholic Beverage Control shall not be required of the operator or onboard safety monitor, so long as neither they, nor their employees or agents sell, serve, or furnish any alcoholic beverage to any passenger.
(c) For purposes of this section, “alcoholic beverage” has the same meaning as defined in Section 23004 of the Business and Professions Code.
(d) This section shall remain in effect only until January 1, 2020, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date.
21215.5.
This article does not preclude a local authority from imposing more stringent operating or equipment requirements on a pedicab subject to this article.
SEC. 3.
Section 23229 of the Vehicle Code is amended to read:
23229.
(a) Except as provided in Section 23229.1, Sections 23221 and 23223 do not apply to passengers in any bus, taxicab, or limousine for hire licensed to transport passengers pursuant to the Public Utilities Code or proper local authority, the living quarters of a housecar or camper, or of a pedicab operated pursuant to Article 4.5 (commencing with Section 21215) of Chapter 1.
(b) Except as provided in Section 23229.1, Section 23225 does not apply to the driver or owner of a bus, taxicab, or limousine for hire licensed to transport passengers pursuant to the Public Utilities Code or proper local authority, or of a pedicab operated pursuant to Article 4.5 (commencing with Section 21215) of Chapter 1.
SEC. 4.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

Summary: Existing law generally regulates the operation of bicycles, including, among other things, providing that a person operating a bicycle on the highway has all the rights and is subject to all the provisions applicable to the driver of a vehicle, including a prohibition against operating a bicycle while under the influence of an alcoholic beverage or any drug. These provisions also apply to a pedicab, as defined. A violation of the provisions regulating the operation of a bicycle or pedicab is an offense. This bill would expand the definition of a pedicab to include a 4-wheeled device that is primarily or exclusively pedal-powered, has a seating capacity for 8 or more passengers, cannot travel in excess of 15 miles per hour, and is being used for transporting passengers for hire, as prescribed. The bill would impose specified requirements on these pedicabs defined by the bill, relating to, among other things, a maximum seating capacity for 15 passengers, local authorization to operate, operator qualifications and training, safety equipment, inspections, financial responsibility, reporting of accidents to the Department of the California Highway Patrol, the loading and unloading of passengers, and general operation of pedicabs. The bill would, until January 1, 2020, establish requirements for pedicabs that allow passenger alcohol consumption. Because a violation of these provisions would be a crime, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

An act to amend Sections 467.5 and 23229 of, and to add Article 4.5 (commencing with Section 21215) to Chapter 1 of Division 11 of, and to repeal Section 21215.2 of, the Vehicle Code, relating to vehicles.


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

SECTION 1.
Section 35012 of the Education Code is amended to read:
35012.
(a) Except as otherwise provided, the governing board of a school district shall consist of five members elected at large by the qualified voters of the district. The terms of the members shall, except as otherwise provided, be for four years and staggered so that as nearly as practicable one-half of the members shall be elected in each odd-numbered year.
(b) A unified school district may have a governing board of seven members in the event the proposal for unification has specified a governing board of seven members. The members of the governing board shall be elected at large or by trustee areas as designated in the proposal for unification and shall serve four-year terms of office.
(c) Notwithstanding subdivision (a), and except as provided in this subdivision and Section 5018, the governing board of an elementary school district other than a union or joint union elementary school district shall consist of three members selected at large from the territory comprising the district. Whenever, in any such elementary school district the average daily attendance during the preceding fiscal year is 300 or more, the procedures prescribed by Section 5018 shall be undertaken.
(d) (1) (A) There may be submitted to the governing board of a school district maintaining one or more high schools a pupil petition requesting the governing board to appoint one or more nonvoting pupil members to the board pursuant to this section.
(B) There may also be submitted to the governing board of a school district maintaining one or more high schools a pupil petition requesting the governing board to allow preferential voting for the pupil member or members of the board. This request may be made in the original petition for pupil representation on the board or in a separate petition after a pupil member or members have been appointed to the board.
(2) Whether for pupil representation or for preferential voting for the pupil member or members, the petition shall contain the signatures of either (A) not less than 500 pupils regularly enrolled in high schools of the district, or (B) not less than 10 percent of the number of pupils regularly enrolled in high schools of the district, whichever is less. Each fiscal year, and within 60 days of receipt of a petition for pupil representation, or at its next regularly scheduled meeting if no meeting is held within those 60 days, the governing board of a school district shall order the inclusion within the membership of the governing board, in addition to the number of members otherwise prescribed, at least one nonvoting pupil member. The governing board may order the inclusion of more than one nonvoting pupil member.
(3) Upon receipt of a petition for pupil representation, the governing board of a school district shall, commencing July 1, 1976, and each year thereafter, order the inclusion within the membership of the governing board, in addition to the number of members otherwise prescribed, at least one nonvoting pupil member. The governing board may order the inclusion of more than one nonvoting pupil member.
(4) (A) Upon receipt of a petition for preferential voting for the pupil member or members, the governing board of the school district shall allow preferential voting for the pupil member or members of the governing board.
(B) Preferential voting, as used in this section, means a formal expression of opinion that is recorded in the minutes and cast before the official vote of the governing board of the school district. A preferential vote shall not serve in determining the final numerical outcome of a vote. No preferential vote shall be solicited on matters subject to closed session discussion.
(5) The governing board of the school district may adopt a resolution authorizing the nonvoting or preferential voting pupil member or members to make motions that may be acted upon by the governing board, except on matters dealing with employer-employee relations pursuant to Chapter 10.7 (commencing with Section 3540) of Division 4 of Title 1 of the Government Code.
(6) Each pupil member shall have the right to attend each and all meetings of the governing board of the school district, except executive sessions.
(7) Any pupil selected to serve as a nonvoting or preferential voting member of the governing board of a school district shall be enrolled in a high school of the district, may be less than 18 years of age, and shall be chosen by the pupils enrolled in the high school or high schools of the district in accordance with procedures prescribed by the governing board. The term of a pupil member shall be one year commencing on July 1 of each year.
(8) A nonvoting or preferential voting pupil member shall be entitled to the mileage allowance to the same extent as regular members, but is not entitled to the compensation prescribed by Section 35120.
(9) A nonvoting or preferential voting pupil member shall be seated with the members of the governing board of the school district and shall be recognized as a full member of the board at the meetings, including receiving all materials presented to the board members and participating in the questioning of witnesses and the discussion of issues.
(10) The nonvoting or preferential voting pupil member shall not be included in determining the vote required to carry any measure before the governing board of the school district.
(11) The nonvoting or preferential voting pupil member shall not be liable for any acts of the governing board of the school district.
(12) A majority vote of all voting board members shall be required to approve a motion to eliminate the nonvoting or preferential voting pupil member position from the governing board of a school district. The motion shall be listed as a public agenda item for a meeting of the governing board prior to the motion being voted upon.
SEC. 2.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

Summary: Existing law requires the governing board of a school district maintaining one or more high schools to appoint to its membership one or more nonvoting pupil members if pupils petition the governing board to make those appointments. This bill would require the governing board of a school district to appoint the pupil member or members within 60 days of receiving the petition, or at its next regularly scheduled meeting if no meeting is held within those 60 days, as specified. The bill would require a majority vote of all voting board members on a motion to eliminate the nonvoting or preferential voting pupil member position from the governing board of a school district, and would require the motion to be listed as a public agenda item for a meeting of the governing board of the school district prior to the motion being voted upon. Because the bill would require school districts to provide a higher level of service, it would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

An act to amend Section 35012 of the Education Code, relating to school districts.


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

SECTION 1.
Section 14105.94 of the Welfare and Institutions Code is amended to read:
14105.94.
(a) An eligible provider, as described in subdivision (b), may, in addition to the rate of payment that the provider would otherwise receive for Medi-Cal ground emergency medical transportation services, receive supplemental Medi-Cal reimbursement to the extent provided in this section.
(b) A provider shall be eligible for supplemental reimbursement only if the provider has all of the following characteristics continuously during a state fiscal year:
(1) Provides ground emergency medical transportation services to Medi-Cal beneficiaries.
(2) Is a provider that is enrolled as a Medi-Cal provider for the period being claimed.
(3) Is owned or operated by the state, a city, county, city and county, fire protection district organized pursuant to Part 2.7 (commencing with Section 13800) of Division 12 of the Health and Safety Code, special district organized pursuant to Chapter 1 (commencing with Section 58000) of Division 1 of Title 6 of the Government Code, community services district organized pursuant to Part 1 (commencing with Section 61000) of Division 3 of Title 6 of the Government Code, health care district organized pursuant to Chapter 1 (commencing with Section 32000) of Division 23 of the Health and Safety Code, or a federally recognized Indian tribe.
(c) An eligible provider’s supplemental reimbursement pursuant to this section shall be calculated and paid as follows:
(1) The supplemental reimbursement to an eligible provider, as described in subdivision (b), shall be equal to the amount of federal financial participation received as a result of the claims submitted pursuant to paragraph (2) of subdivision (f).
(2) In no instance shall the amount certified pursuant to paragraph (1) of subdivision (e), when combined with the amount received from all other sources of reimbursement from the Medi-Cal program, exceed 100 percent of actual costs, as determined pursuant to the Medi-Cal State Plan, for ground emergency medical transportation services.
(3) The supplemental Medi-Cal reimbursement provided by this section shall be distributed exclusively to eligible providers under a payment methodology based on ground emergency medical transportation services provided to Medi-Cal beneficiaries by eligible providers on a per-transport basis or other federally permissible basis. The department may, to the extent permitted under federal law and regulations, provide supplemental reimbursement for the cost of paramedic services at a rate of payment equal to cost. The department shall obtain approval from the federal Centers for Medicare and Medicaid Services for the payment methodology to be utilized, and shall not make any payment pursuant to this section prior to obtaining that approval.
(d) (1) It is the Legislature’s intent in enacting this section to provide the supplemental reimbursement described in this section without any expenditure from the General Fund. An eligible provider, as a condition of receiving supplemental reimbursement pursuant to this section, shall enter into, and maintain, an agreement with the department for the purposes of implementing this section and reimbursing the department for the costs of administering this section.
(2) The nonfederal share of the supplemental reimbursement submitted to the federal Centers for Medicare and Medicaid Services for purposes of claiming federal financial participation shall be paid only with funds from the governmental entities described in paragraph (3) of subdivision (b) and certified to the state as provided in subdivision (e).
(e) Participation in the program by an eligible provider described in this section is voluntary. If an applicable governmental entity elects to seek supplemental reimbursement pursuant to this section on behalf of an eligible provider owned or operated by the entity, as described in paragraph (3) of subdivision (b), the governmental entity shall do all of the following:
(1) Certify, in conformity with the requirements of Section 433.51 of Title 42 of the Code of Federal Regulations, that the claimed expenditures for the ground emergency medical transportation services are eligible for federal financial participation.
(2) Provide evidence supporting the certification as specified by the department.
(3) Submit data as specified by the department to determine the appropriate amounts to claim as expenditures qualifying for federal financial participation.
(4) Keep, maintain, and have readily retrievable, any records specified by the department to fully disclose reimbursement amounts to which the eligible provider is entitled, and any other records required by the federal Centers for Medicare and Medicaid Services.
(f) (1) The department shall promptly seek any necessary federal approvals for the implementation of this section. The department may limit the program to those costs that are allowable expenditures under Title XIX of the federal Social Security Act (42 U.S.C. Sec. 1396 et seq.). If federal approval is not obtained for implementation of this section, this section shall not be implemented.
(2) The department shall submit claims for federal financial participation for the expenditures for the services described in subdivision (e) that are allowable expenditures under federal law.
(3) The department shall, on an annual basis, submit any necessary materials to the federal government to provide assurances that claims for federal financial participation will include only those expenditures that are allowable under federal law.
(g) (1) If either a final judicial determination is made by any court of appellate jurisdiction or a final determination is made by the administrator of the federal Centers for Medicare and Medicaid Services that the supplemental reimbursement provided for in this section must be made to any provider not described in this section, the director shall execute a declaration stating that the determination has been made and on that date this section shall become inoperative.
(2) The declaration executed pursuant to this subdivision shall be retained by the director, provided to the fiscal and appropriate policy committees of the Legislature, the Secretary of State, the Secretary of the Senate, the Chief Clerk of the Assembly, and the Legislative Counsel, and posted on the department’s Internet Web site.
(h) 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 and administer this section by means of provider bulletins, or similar instructions, without taking regulatory action.
SEC. 2.
Section 14105.941 is added to the Welfare and Institutions Code, immediately following Section 14105.94, to read:
14105.941.
(a) The department shall design and implement, in consultation with eligible providers as described in subdivision (b), an intergovernmental transfer program relating to Medi-Cal managed care, ground emergency medical
transport
transportation
services in order to increase capitation payments for the purpose of increasing reimbursement to eligible providers.
(b) A provider shall be eligible for increased reimbursement pursuant to this section only if the provider meets both of the following conditions in an applicable state fiscal year:
(1) Provides ground emergency medical
transport
transportation
services to Medi-Cal managed care enrollees pursuant to a contract or other arrangement with a Medi-Cal managed care plan.
(2) Is owned or operated by the state, a city, county, city and county, fire protection district organized pursuant to Part 2.7 (commencing with Section 13800) of Division 12 of the Health and Safety Code, special district organized pursuant to Chapter 1 (commencing with Section 58000) of Division 1 of Title 6 of the Government Code, community services district organized pursuant to Part 1 (commencing with Section 61000) of Division 3 of Title 6 of the Government Code, health care district organized pursuant to Chapter 1 (commencing with Section 32000) of Division 23 of the Health and Safety Code, or a federally recognized Indian tribe.
(c) (1) To the extent intergovernmental transfers are voluntarily made by, and accepted from, an eligible provider described in subdivision (b), or a governmental entity affiliated with an eligible provider, the department shall make increased capitation payments to applicable Medi-Cal managed care plans for covered ground emergency medical transportation services.
(2) The increased capitation payments made pursuant to this section shall be in amounts actuarially equivalent to the supplemental fee-for-service payments available for eligible providers pursuant to Section 14105.94, to the extent permissible under federal law.
(3) Except as provided in subdivision (f), all funds associated with intergovernmental transfers made and accepted pursuant to this section shall be used to fund additional payments to eligible providers.
(4) Medi-Cal managed care plans shall pay 100 percent of any amount of increased capitation payments made pursuant to this section to eligible providers for providing and making available ground emergency medical transportation services pursuant to a contract or other arrangement with a Medi-Cal managed care plan.
(d) The intergovernmental transfer program developed pursuant to this section shall be implemented on
January 1,
July 1,
2016, or a later date if otherwise required pursuant to any necessary federal approvals obtained, and only to the extent intergovernmental transfers from the eligible provider, or the governmental entity with which it is affiliated, are provided for this purpose. To the extent permitted by federal law, the department may implement the intergovernmental transfer program and increased capitation payments pursuant to this section on a retroactive basis as needed.
(e) Participation in the intergovernmental transfers under this section is voluntary on the part of the transferring entities for purposes of all applicable federal laws.
(f) This section shall be implemented without any additional expenditure from the General Fund. As a condition of participation under this section, each eligible provider as described in subdivision (b), or the governmental entity affiliated with an eligible provider, shall agree to reimburse the department for any costs associated with implementing this section. Intergovernmental transfers described in this section are not subject to the administrative fee assessed under paragraph (1) of subdivision (d) of Section 14301.4.
(g) As a condition of participation under this section, Medi-Cal managed care plans, eligible providers as described in subdivision (b), and governmental entities affiliated with eligible providers shall agree to comply with any requests for information or similar data requirements imposed by the department for purposes of obtaining supporting documentation necessary to claim federal funds or to obtain federal approvals.
(h) This section shall be implemented only if and to the extent federal financial participation is available and is not otherwise jeopardized, and any necessary federal approvals have been obtained.
(i) To the extent that the director determines that the payments made pursuant to this section do not comply with federal Medicaid requirements, the director retains the discretion to return or not accept an intergovernmental transfer, and may adjust payments pursuant to this section as necessary to comply with federal Medicaid requirements.
(j) To the extent federal approval is obtained, the increased capitation payments under this section may commence for dates of service on or after January 1, 2016.
(k) 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, without taking regulatory action.

Summary: Existing law provides for the Medi-Cal program, which is administered by the State Department of Health Care Services, and under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions. Existing law authorizes certain ground emergency medical transportation providers to receive supplemental Medi-Cal reimbursement in addition to the rate of payment that the provider would otherwise receive for those services. Existing law provides that participation in the supplemental reimbursement program by an eligible provider is voluntary, and requires the nonfederal share of the supplemental reimbursement to be paid only with funds from specified governmental entities. This bill would authorize the department to provide supplemental reimbursement under these provisions for the cost of paramedic services at a rate of payment equal to cost. This bill would also require the department to design and implement an intergovernmental transfer (IGT) program in order to increase capitation payments to Medi-Cal managed care plans for covered ground emergency medical transportation services, as specified. The bill would require the department to implement the IGT program on January 1, July 1, 2016, or a later date if otherwise required pursuant to any necessary federal approvals obtained. The bill would provide that participation in the IGTs is voluntary on the part of the transferring entity and would require Medi-Cal managed care plans to pay 100 of any amount of increased capitation payments made to eligible providers for providing and making available ground emergency medical transportation services. services, and would permit, to the extent federal approval is obtained, the increased capitation payments to commence for dates of services on or after January 1, 2016.

An act to amend Section 14105.94 of, and to add Section 14105.941 to, the Welfare and Institutions Code, relating to Medi-Cal.


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

SECTION 1.
It is the intent of the Legislature to enact legislation that accomplishes all of the following:
(a) Creates a statewide Veterans’ Home Morale, Welfare, and Recreation Fund.
(b) Creates a Morale, Welfare, and Recreation Operating Fund at each veterans’ home.
(c) Authorizes and directs the Department of Veterans Affairs to promulgate rules and regulations related to the statewide Veterans’ Home Morale, Welfare, and Recreation Fund through a stakeholder process that includes members of the Veterans’ Homes of California. It is further the intent of the Legislature that these rules and regulations include, but not be limited to, a yearly allocation process for moneys to be expended in each home.
(d) Maintains the highest possible degree of transparent administration and resident involvement.
(e) Encourages identical Morale, Welfare, and Recreation Fund policies and procedures to be established, documented, and implemented at each veterans’ home.
SEC. 2.
Section 1047 of the Military and Veterans Code is repealed.
SEC. 3.
Section 1047 is added to the Military and Veterans Code, to read:
1047.
(a) (1) The Veterans’ Home Morale, Welfare, and Recreation Special Fund (MWR Fund) is hereby created in the State Treasury. Notwithstanding Section 13340 of the Government Code, all funds deposited in the MWR Fund as authorized by this section shall be continuously appropriated to the department, without regard to fiscal year. All references in this chapter to the “Morale, Welfare, and Recreation Fund” or “MWR Fund” are deemed to refer to the fund created by this paragraph.
(2) The department shall distribute moneys in the MWR Fund to the homes to provide for the general welfare of the members of the homes.
(3) For the purposes of this subdivision, providing for the general welfare of the members of a home includes, but is not limited to, operating a canteen, base exchange, hobby shop, theater, library, or band, and payment for newspapers, chapel expenses, entertainment expenses, sports activities, celebrations, or any other function or activity that is related to the morale, welfare, and recreation of the residents that would not otherwise be paid for by the General Fund.
(4) The administrator of a home shall deposit all moneys maintained by the administrator in a Morale, Welfare, and Recreation Fund pursuant to this section as it read on January 1, 2015, into the Veterans’ Home Morale, Welfare, and Recreation Special Fund created by paragraph (1).
(5) All future moneys collected as a result of unreimbursed costs of care determinations are special state funds and shall be deposited in the MWR Fund.
(6) Each home shall establish an MWR Advisory Committee to provide ongoing guidance for the MWR Fund processes, including, but not limited to, budgeting, contracts, investments, expenditures, and revenues. The committee shall be comprised of the administrator or a representative and representatives of the Veterans’ Home Allied Council or resident council.
(7) On or before July 1, 2018, the department, in consultation with the MWR Advisory Committee in each home, the Veterans’ Home Allied Council, or the resident council at each home, shall adopt regulations that carry out the intent of this section, including, but not limited to, the administration of the MWR Fund and Morale, Welfare, and Recreation Operating Funds (MWRO Funds), the process by which the homes submit annual budgets and receive allocations, the process by which the secretary shall review and act upon the allocation requests and requests for augmentation of those allocations.
(8) Moneys deposited in the MWR Fund are exempt from the requirements of Article 2 (commencing with Section 11270) of Chapter 3 of Part 1 of Division 3 of Title 2 of the Government Code.
(b) (1) The department shall annually determine the amount for disbursement from the MWR Fund to the homes. This amount shall be disbursed proportionally by each home’s relative share of the total population of the entire veterans’ home system. All annual allocation requests and annual allocations, as well as any augmentations to those allocations, shall be made known to the members of the homes. In making allocation decisions, the department shall consider whether there are economies of scale or other savings which may be realized by aggregating home requests or otherwise while still meeting the intent of the homes’ requests.
(2) The secretary, in consultation with the administrator of the affected home, may augment the allocation from the MWR Fund to any veterans’ home after making a determination that this action is appropriate on the basis of factors including, but not limited to, the home’s unique age, size, population, and historical significance.
(c) Moneys in the MWR Fund shall not be expended for the following:
(1) A medical treatment or medical care of a member of a home.
(2) The maintenance or major capital improvement of the physical plant of a home.
(3) Any function, operation, or activity that is not directly related to the morale, welfare, or recreation of the members of the home.
(d) Appropriations from the General Fund for the purposes described in paragraph (3) of subdivision (b) may not be reduced for the purpose of, or to have the effect of, requiring increased expenditures from the MWR Fund for those described purposes.
(e) The department shall adopt, use, and require the homes to use uniform accounting procedures for the MWR Fund and the MWRO Funds subject to the department’s oversight and audit as needed. The department shall prepare an itemized report that is organized by category, including sufficient detail to allow legislative oversight, and accounts for all expenditures from, and all funds deposited into, the MWR Fund and the MWRO Funds for the previous fiscal year. The department shall submit the report on or before December 31, 2018, and annually on or before August 20 thereafter, to the following:
(1) The Department of Finance.
(2) The fiscal committees of the Assembly and Senate.
(3) The committees of the Assembly and the Senate that have subject matter jurisdiction over veterans’ affairs.
(4) The Veterans’ Home Allied Council or the resident council of each home.
(5) The administrator of each home.
(f) The department shall maintain a reserve in the MWR Fund of not less than three million dollars ($3,000,000).
(g) The department may transfer funds from the MWR Fund to the Surplus Money Investment Fund for investment pursuant to Article 4 (commencing with Section 16470) of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code or may hire a third-party investment broker to invest moneys from the MWR Fund consistent with Section 16480.2 of the Government Code and any regulations regarding selecting prudent, approved investment types. The amount invested and the accrued interest or earnings shall be credited to the MWR Fund for allocation by the department.
(h) The administrator of a home may enter into an agreement with the Veterans’ Home Allied Council that authorizes the council to operate facilities and engage in activities that are authorized by subdivision (b). The agreement shall be in the form and manner specified by the administrator and in conformity with applicable California law and regulations, including, but not limited to, the state procurement and contracting process.
SEC. 4.
Section 1048 of the Military and Veterans Code is repealed.
SEC. 5.
Section 1048 is added to the Military and Veterans Code, to read:
1048.
(a) A Morale, Welfare, and Recreation Operating Fund (MWRO Fund) shall be maintained by the administrator of each home to administer quality of life activities for the general welfare of the members, pursuant to the annual allocation, including any augmentation provided by the secretary, from the MWR Fund.
(b) The annual allocations from the MWR Fund, including any augmentations provided by the secretary, and any other quality of life moneys received shall be deposited in a local bank account established for this purpose.
(c) Moneys in the MWRO Fund shall not be expended for the following:
(1) Medical treatment or medical care for a member.
(2) The maintenance or major capital improvement of the Home’s physical plant.
(3) A function, operation, or activity that is not directly related to the morale, welfare, or recreation of the members of the home.
SEC. 6.
Section 1049 of the Military and Veterans Code is amended to read:
1049.
(a) Moneys in the Morale, Welfare, and Recreation Fund maintained under subdivision (a) of Section 1047 may be used, subject to approval by the secretary, to establish or operate a canteen and base exchange at each home location. The canteen may sell goods at a profit.
(b) The MWRO Fund of each home shall include proceeds from the operation of a canteen, or base exchange. Any moneys derived from golf course green fees, range ball fees, and operations of activities unique to each Veterans’ Home of California shall be deposited in the MWRO Fund allocation for that home after appropriate state costs, fees, and rent are deducted from the revenue received for those operations.

Summary: Existing law provides for the establishment and operation of the Veterans’ Home of California at various sites, including homes in Barstow, Chula Vista, Lancaster, Ventura, and Yountville, and provides for an administrator for each home or homesite. Existing law defines “home” and “administrator” for these purposes. Existing law establishes the Veterans’ Home Fund in the State Treasury, which includes the proceeds of certain bonds. Existing law requires, upon appropriation of the Legislature, the Department of Veterans Affairs to use money in the fund for the purpose of designing and constructing veterans’ homes in California. Existing law requires the administrator of a veterans’ home to maintain a Morale, Welfare, and Recreation Fund, which is required to be used, at the discretion of the administrator and subject to the approval of the Secretary of Veterans Affairs, to provide for the general welfare of the veterans. Existing law specifies the moneys required to be deposited into the fund, and requires the administrator to prepare an itemized report for the expenditures made out of, and deposits made into, the fund. Under existing law, those reports are required to be submitted to the secretary, the fiscal committees of the Assembly and Senate, the committees of the Assembly and the Senate that have subject matter jurisdiction over veterans’ affairs, and the Veterans’ Home Allied Council on or before August 20 of each year. This bill would create the Veterans’ Home Morale, Welfare, and Recreation Special Fund , a continuously appropriated fund, in the State Treasury. The bill would require the administrator of a veterans’ home to deposit all moneys maintained by the administrator in an existing Morale, Welfare, and Recreation Fund into the statewide MWR Fund. The bill would require the administrator of each home to establish a Morale, Welfare, and Recreation Operating Fund to administer quality of life activities for the general welfare of the residents and receive funds from the MWR Fund, as specified, and to establish an MWR Advisory Committee, as specified. The bill would require the department, in consultation with the MWR Advisory Committee, the Veterans’ Home Allied Council or the resident council of each home, to adopt regulations related to, among other things, administering the MWR Fund and the MWRO Funds and the process by which the homes submit and receive budget allocations. The bill would authorize the use of funds in the MWR Fund to provide for the general welfare of the residents of a home, as specified, and would specify restrictions on the use of those funds. The bill would require the department to annually determine the total amount for disbursement from the MWR Fund, and for that disbursement to be allocated proportionally to each home’s relative share of the total population of the entire veterans’ home system. The bill would authorize additional allocations to any veterans’ home if it is appropriate on the basis of factors including, but not limited to, the home’s unique age, size, population, and historical significance. The bill would authorize the administrator of a home to enter into an agreement with the Veterans’ Home Allied Council to operate facilities and activities that are related to authorized expenditures from the MWR Fund, as specified. The bill would require the department to prepare annual reports regarding moneys deposited into the MWR Fund and expenditure of those funds, as specified, and to submit the report on or before December 31 of each year to specified entities. The bill would require the department to maintain a $3,000,000 reserve in the MWR Fund and would authorize the department to invest moneys in the MWR Fund in the Surplus Money Investment Fund or by contracting with a third-party investment broker consistent with laws and regulations regarding selecting prudent, approved investment types.

An act to amend Section 1049 of, and to repeal and add Sections 1047 and 1048 of, the Military and Veterans Code, relating to veterans, and making an appropriation therefor.


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

SECTION 1.
Section 3008 of the Public Resources Code is amended to read:
3008.
(a) “Well” means any oil or gas well or well for the discovery of oil or gas; any well on lands producing or reasonably presumed to contain oil or gas; any well drilled for the purpose of injecting fluids or gas for stimulating oil or gas recovery, repressuring or pressure maintenance of oil or gas reservoirs, or disposing of waste fluids from an oil or gas field; any well used to inject or withdraw gas from an underground storage facility; or any well drilled within or adjacent to an oil or gas pool for the purpose of obtaining water to be used in production stimulation or repressuring operations.
(b) “Prospect well” or “exploratory well” means any well drilled to extend a field or explore a new, potentially productive reservoir.
(c) “Active observation well” means a well being used for the sole purpose of gathering reservoir data, such as pressure or temperature in a reservoir being currently produced or injected by the operator, and the data is gathered at least once every three years.
(d) “Idle well” means any well that has not produced oil or natural gas or has not been used for injection for six consecutive months of continuous operation during the last five or more years. An idle well does not include an active observation well.
(e) “Long-term idle well” means any well that has not produced oil or natural gas or has not been used for injection for six consecutive months of continuous operation during the last 10 or more years. A long-term idle well does not include an active observation well.
(f) “Enhanced oil recovery method” means the process of obtaining oil, not recovered from an oil reservoir, by utilizing certain extraction processes, including, but not limited to, thermal recovery, gas injection, chemical injection, and water flooding.
(g) “Confidential well” means an exploratory well with records that the division maintains as confidential information in accordance with Section 3234.
SEC. 2.
Section 3106 of the Public Resources Code is amended to read:
3106.
(a) The supervisor shall
authorize
supervise
the exploration and production of hydrocarbons, including
, but not limited to, the
drilling, stimulation,
the
use of enhanced oil recovery methods and well completion techniques, operation, reworking, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities attendant to oil and gas production, including pipelines not subject to regulation pursuant to Chapter 5.5 (commencing with Section 51010) of Part 1 of Division 1 of Title 5 of the Government Code that are within an oil and gas
field. These activities shall be authorized in a manner
field,
so as to prevent, as far as possible, damage to life, health, property, and natural resources; damage to underground oil and gas deposits from infiltrating water and other causes; loss of oil, gas, or reservoir energy; and damage to underground and surface waters suitable for irrigation or domestic purposes or otherwise uncontaminated waters that could be treated to be suitable for irrigation or domestic purposes.
(b) The supervisor may allow an owner or operator of a well to drill, operate, maintain, and abandon wells utilizing all methods and practices known to the oil industry to increase the ultimate recovery of underground hydrocarbons if the supervisor finds that those methods and practices are consistent with this division. To further the elimination of waste by increasing the recovery of underground hydrocarbons, it is hereby declared as a policy of this state that the grant in an oil and gas lease or contract to a lessee or operator of the right or power, in substance, to explore for and remove all hydrocarbons from any lands in the state, in the absence of an express provision to the contrary contained in the lease or contract, is deemed to allow the lessee or contractor, or the lessee’s or contractor’s successors or assigns, to do what a prudent operator using reasonable diligence would do, having in mind the best interests of the lessor, lessee, and the state in producing and removing hydrocarbons, including, but not limited to, the injection of air, gas, water, or other fluids into the productive strata, the application of pressure, heat, or other means for the reduction of viscosity of the hydrocarbons, the supplying of additional motive force, or the creation of enlarged or new channels for the underground movement of hydrocarbons into production wells, when these methods or processes employed have been approved by the supervisor, except that nothing contained in this section imposes a legal duty upon the lessee or contractor, or the lessee’s or contractor’s successors or assigns, to conduct these operations.
(c) The supervisor may require an operator to implement a monitoring program, designed to detect releases to the soil and water, including both groundwater and surface water, for aboveground oil production tanks and facilities.
(d) The supervisor shall administer this division in conformance with Chapter 4.5 (commencing with Section 65920) of Division 1 of Title 7 of the Government Code.
SEC. 3.
Section 3203 of the Public Resources Code is amended to read:
3203.
(a) The operator of any well, before commencing the work of drilling the well, shall file with the supervisor or the district deputy a written application for approval to commence drilling. The application shall detail all the methods and practices expected to be used for the well, including, but not limited to, well stimulation treatments and enhanced oil recovery methods. The application shall also demonstrate that the drilling and any method utilized will pose de minimis risk to public health and safety. Drilling shall not commence until written approval is given by the supervisor or the district deputy, finding that the project is consistent with Section 3106. If operations have not commenced within one year of approval of the application, the approval shall be deemed canceled, unless the applicant makes a written request for an extension with a reason for the extension. The supervisor may grant a one-year extension of the approval in writing. The application shall contain the pertinent data the supervisor requires on printed forms supplied by the division or on other forms acceptable to the supervisor. The supervisor may require other pertinent information to supplement the application.
(b) After the completion of any well, this section also applies, as far as may be, to the deepening or redrilling of the well, any operation involving the plugging of the well, or any operations permanently altering in any manner the casing of the well. The number or designation of any well, and the number or designation specified for any well in an application filed as required by this section, shall not be changed without first obtaining a written approval of the supervisor.
(c) If an operator has failed to comply with an order of the supervisor, the supervisor may deny approval of proposed well operations until the operator brings its existing well operations into compliance with the order. If an operator has failed to pay a civil penalty, remedy a violation that it is required to remedy to the satisfaction of the supervisor pursuant to an order issued under Section 3236.5, or to pay any charges assessed under Article 7 (commencing with Section 3400), the supervisor may deny approval to the operator’s proposed well operations until the operator pays the civil penalty, remedies the violation to the satisfaction of the supervisor, or pays the charges assessed under Article 7 (commencing with Section 3400).
(d) The applications and written approvals by the supervisor or the district deputy shall be posted on the division’s Internet Web site.
SEC. 4.
Section 3215.5 is added to the Public Resources Code, to read:
3215.5.
For any well, regardless of the operation or activity taking place, if there is any loss of well and well casing integrity, that loss and any resultant action or remedial work shall be reported by the operator to the applicable regional water quality control board within five days of the event.
SEC. 5.
Section 3234 of the Public Resources Code is amended to read:
3234.
(a) (1) Except as otherwise provided in this section, all of the well records, including production reports, of any owner or operator that are filed pursuant to this chapter are public records for purposes of the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).
(2) Those records are public records when filed with the division unless the owner or operator requests, in writing, that the division maintain the well records of onshore exploratory wells or offshore exploratory wells as confidential information. The owner or operator shall give a detailed explanation and rationale for keeping the records of the exploratory well confidential and the supervisor shall respond in writing as to whether the confidential well status has been granted. Both the request for, and the granting of, confidential well status are public records, and shall be made accessible on the division’s Internet Web site. For onshore wells, the confidential period shall not exceed two years from the cessation of drilling operations as defined in subdivision (e). For offshore wells, the confidential period shall not exceed three years from the cessation of drilling operations as specified in subdivision (e).
(3) Well records maintained as confidential information by the division shall be open to inspection by those persons who are authorized by the owner or operator in writing. Confidential status shall not apply to state officers charged with regulating well operations, the director, or as provided in subdivision (c).
(4) On receipt by the supervisor of a written request documenting extenuating circumstances relating to a particular well, including a well on an expired or terminated lease, the supervisor may extend the period of confidentiality, as set forth in paragraph (2), for no more than six months.
(5) Once the confidential well period has ended, all well records shall be posted on the division’s Internet Web site within 10 working days.
(b) Notwithstanding the provisions of subdivision (a) regarding the period of confidentiality, the well records for onshore and offshore wells shall become public records when the supervisor is notified that the lease has expired or terminated.
(c) Production reports filed pursuant to Section 3227 shall be open to inspection by the State Board of Equalization or its duly appointed representatives when making a survey pursuant to Section 1815 of the Revenue and Taxation Code or when valuing state-assessed property pursuant to Section 755 of the Revenue and Taxation Code, and by the assessor of the county in which a well referred to in Section 3227 is located.
(d) For the purposes of this section, “well records” does not include either experimental logs and tests or interpretive data not generally available to all operators, as defined by the supervisor by regulation.
(e) The cessation of drilling operations occurs on the date of removal of drilling machinery from the well site.
SEC. 6.
Section 3450 of the Public Resources Code is repealed.
SEC. 7.
Section 3450 is added to the Public Resources Code, to read:
3450.
(a) The Conservation Committee of California Oil and Gas Producers or any other committee of oil producers may issue recommendations to the supervisor relating to oil and gas exploration and production, if both of the following are satisfied:
(1) Copies of those recommendations are delivered to the supervisor.
(2) A committee issuing the recommendations makes available to the supervisor its records, files, minutes, reports, and other data pertaining to those recommendations.
(b) The division shall post any recommendation received by the supervisor pursuant to subdivision (a) on the division’s Internet Web site.
(c) (1) The supervisor, in his or her discretion, may express his or her disapproval of any recommendation received pursuant to subdivision (a).
(2) The supervisor, in the absence of a recommendation by a committee of oil producers or if the supervisor deems a recommendation to be insufficient or incorrect, may issue recommendations relating to oil and gas exploration and production.
(3) Oil producers may comply or agree to comply with the supervisor’s recommendation, but neither a disapproval by the supervisor nor a recommendation by him or her shall constitute a basis for implying an obligation for oil producers to comply with that disapproval or recommendation.
(d) Nothing in this section shall authorize the production of oil or gas in violation of this division.
SEC. 8.
Section 3451 of the Public Resources Code is repealed.
SEC. 9.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

Summary: Under existing law, the Division of Oil, Gas, and Geothermal Resources in the Department of Conservation regulates the drilling, operation, maintenance, and abandonment of oil and gas wells in the state. Existing law requires the State Oil and Gas Supervisor to supervise the drilling, operation, maintenance, and abandonment of wells and the operation, maintenance, and removal or abandonment of tanks and facilities related to oil and gas production within an oil and gas field, so as to prevent damage to life, health, property, and natural resources, as provided. To permit owners and operators of wells to utilize all known methods and practices to increase the ultimate recovery of hydrocarbons. And to perform the supervisor’s duties in a manner that encourages the wise development of oil and gas resources to best meet oil and gas needs in this state. This bill would no longer require the supervisor to perform his or her duties in that manner. The bill would instead require the supervisor to authorize supervise the exploration and production of hydrocarbons, including, among other things, the drilling, operation, maintenance, and abandonment of wells, and the use of enhanced oil recovery methods, as defined, and stimulation, as provided, and would authorize the supervisor to allow an owner or operator of a well to drill, operate, maintain, and abandon wells utilizing all known methods and practices to increase the ultimate recovery of hydrocarbons if the supervisor finds that those methods and practices are consistent with existing law. Existing law requires the operator of a well to file a written notice of intention to commence drilling with, and prohibits any drilling until approval is given by, the supervisor or district deputy. Under existing law, the notice is deemed approved if the supervisor or district deputy fails to respond to the notice in writing within 10 working days from receipt and is deemed canceled if operations have not commenced within one year of receipt. This bill would require an owner or operator of a well to file an application for approval to commence drilling, containing specified information, and would prohibit any drilling until written approval is given by the supervisor or the district deputy containing specified findings. The bill would authorize the supervisor, upon request, to grant a one-year extension if operations have not commenced within one year of the approval. The bill would require the applications and approvals by the supervisor or the district deputy to be posted on the division’s Internet Web site within 10 working days. The Permit Streamlining Act requires any public agency that is the lead agency for a development project to approve or disapprove of a project, as specified. Under that act, if the lead agency or responsible agency is required to provide public notice of the development project or to hold a public hearing on the development project, or both, and the agency has not provided the public notice or held the hearing, or both, at least 60 days prior to the expirations of specified time periods, the applicant may file an action to compel the agency to provide the public notice or hold the hearing, or both, as specified. This bill would require the supervisor to perform his or her duties in conformance with that act. Existing law generally provides that well records filed by owners or operators with the supervisor are public records. However, existing law authorizes the supervisor, upon written request of an owner or operator, to maintain well records of exploratory wells, or other wells if the supervisor determines that there are extenuating circumstances, as confidential information. Under existing law, the confidential period for an onshore or offshore well is up to 2 or 5 years, respectively, from the cessation of drilling operations, as defined. Existing law authorizes the supervisor to extend the period of confidentiality of a well for 6 months upon written request documenting extenuating circumstances and requires that the total period of confidentiality, including all extensions, for onshore and offshore wells not exceed 4 or 7 years, respectively, from the cessation of drilling operations. This bill would limit the authorization to maintain the confidentiality of well records to exploratory wells and only if the owner or operator includes specified information in the written request. The bill would deem both the request for, and the granting of, confidential well status to be public records and would require that information to be accessible on the division’s Internet Web site. The bill would require all well records of a confidential well, as defined, to be posted on the division’s Internet Web site within 10 working days once the confidential well period has ended. The bill would require that the confidential period for an offshore well not exceed 3 years from the cessation of drilling operations and would authorize the supervisor to extend the period of confidentiality for confidential wells for only 6 months, upon receiving a written request documenting extenuating circumstances. Existing law requires an owner or operator of a well to keep a log, core record, and history of the drilling of wells to be provided to the district deputy within 60 days after the date of cessation of drilling, rework, or abandonment operations or the date of suspension of operation. Under existing law, a person who fails to comply with this and other requirements relating to the regulation of oil or gas operations is guilty of a misdemeanor. This bill would in addition require an owner or operator of a well to report specified information to the applicable regional water quality control board within 5 days of any loss of well and well casing integrity. Because a violation of this requirement would be a crime, the bill would impose a state-mandated local program. Existing law recognizes the Conservation Committee of California Oil and Gas Producers and authorizes it or any other committee of oil producers to make voluntary recommendations to the supervisor regarding, among other things, maximum efficient rates of production, as defined, if specified conditions are satisfied. This bill would instead authorize any committee of oil producers to make recommendations to the supervisor regarding oil and gas exploration and production, as specified, and would require the division to post any recommendations received by the supervisor on the division’s Internet Web site. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

An act to amend Sections 3008, 3106, 3203, and 3234 of, to add Section 3215.5 to, to repeal Section 3451 of, and to repeal and add Section 3450 of, the Public Resources Code, relating to oil and gas.