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

SECTION 1.
Section 1513 of the Code of Civil Procedure is amended to read:
1513.
(a) Subject to Sections 1510 and 1511, the following property held or owing by a business association escheats to this state:
(1) (A) Except as provided in paragraph (6), any demand, savings, or matured time deposit, or account subject to a negotiable order of withdrawal, made with a banking organization, together with any interest or dividends thereon, excluding, from demand deposits and accounts subject to a negotiable order of withdrawal only, any reasonable service charges that may lawfully be withheld and that do not, where made in this state, exceed those set forth in schedules filed by the banking organization from time to time with the Controller, if the owner, for more than three years, has not done any of the following:
(i) Increased or decreased the amount of the deposit, cashed an interest check, or presented the passbook or other similar evidence of the deposit for the crediting of interest.
(ii) Corresponded electronically or in writing with the banking organization concerning the deposit.
(iii) Otherwise indicated an interest in the deposit as evidenced by a memorandum or other record on file with the banking organization.
(B) A deposit or account shall not, however, escheat to the state if, during the previous three years, the owner has owned another deposit or account with the banking organization or the owner has owned an individual retirement account or funds held by the banking organization under a retirement plan for self-employed individuals or a similar account or plan established pursuant to the internal revenue laws of the United States or the laws of this state, as described in paragraph (6), and, with respect to that deposit, account, or plan, the owner has done any of the acts described in clause (i), (ii), or (iii) of subparagraph (A), and the banking organization has communicated electronically or in writing with the owner, at the address to which communications regarding that deposit, account, or plan are regularly sent, with regard to the deposit or account that would otherwise escheat under subparagraph (A). For purposes of this subparagraph, “communications” includes account statements or statements required under the internal revenue laws of the United States.
(C) No banking organization may discontinue any interest or dividends on any savings deposit because of the inactivity contemplated by this section.
(2) (A) Except as provided in paragraph (6), any demand, savings, or matured time deposit, or matured investment certificate, or account subject to a negotiable order of withdrawal, or other interest in a financial organization or any deposit made therewith, and any interest or dividends thereon, excluding, from demand deposits and accounts subject to a negotiable order of withdrawal only, any reasonable service charges that may lawfully be withheld and that do not, where made in this state, exceed those set forth in schedules filed by the financial organization from time to time with the Controller, if the owner, for more than three years, has not done any of the following:
(i) Increased or decreased the amount of the funds or deposit, cashed an interest check, or presented an appropriate record for the crediting of interest or dividends.
(ii) Corresponded electronically or in writing with the financial organization concerning the funds or deposit.
(iii) Otherwise indicated an interest in the funds or deposit as evidenced by a memorandum or other record on file with the financial organization.
(B) A deposit or account shall not, however, escheat to the state if, during the previous three years, the owner has owned another deposit or account with the financial organization or the owner has owned an individual retirement account or funds held by the financial organization under a retirement plan for self-employed individuals or a similar account or plan established pursuant to the internal revenue laws of the United States or the laws of this state, as described in paragraph (6), and, with respect to that deposit, account, or plan, the owner has done any of the acts described in clause (i), (ii), or (iii) of subparagraph (A), and the financial organization has communicated electronically or in writing with the owner, at the address to which communications regarding that deposit, account, or plan are regularly sent, with regard to the deposit or account that would otherwise escheat under subparagraph (A). For purposes of this subparagraph, “communications” includes account statements or statements required under the internal revenue laws of the United States.
(C) No financial organization may discontinue any interest or dividends on any funds paid toward purchase of shares or other interest, or on any deposit, because of the inactivity contemplated by this section.
(3) Any sum payable on a traveler’s check issued by a business association that has been outstanding for more than 15 years from the date of its issuance, if the owner, for more than 15 years, has not corresponded in writing with the business association concerning it, or otherwise indicated an interest as evidenced by a memorandum or other record on file with the association.
(4) Any sum payable on any other written instrument on which a banking or financial organization is directly liable, including, by way of illustration but not of limitation, any draft, cashier’s check, teller’s check, or certified check, that has been outstanding for more than three years from the date it was payable, or from the date of its issuance if payable on demand, if the owner, for more than three years, has not corresponded electronically or in writing with the banking or financial organization concerning it, or otherwise indicated an interest as evidenced by a memorandum or other record on file with the banking or financial organization.
(5) Any sum payable on a money order issued by a business association, including a banking or financial organization, that has been outstanding for more than seven years from the date it was payable, or from the date of its issuance if payable on demand, excluding any reasonable service charges that may lawfully be withheld and that do not, when made in this state, exceed those set forth in schedules filed by the business association from time to time with the Controller, if the owner, for more than seven years, has not corresponded electronically or in writing with the business association, banking, or financial organization concerning it, or otherwise indicated an interest as evidenced by a memorandum or other record on file with the business association. For the purposes of this subdivision, “reasonable service charge” means a service charge that meets all of the following requirements:
(A) It is uniformly applied to all of the issuer’s money orders.
(B) It is clearly disclosed to the purchaser at the time of purchase and to the recipient of the money order.
(C) It does not begin to accrue until three years after the purchase date, and it stops accruing after the value of the money order escheats.
(D) It is permitted by contract between the issuer and the purchaser.
(E) It does not exceed 25 cents ($0.25) per month or the aggregate amount of twenty-one dollars ($21).
(6) (A) Any funds held by a business association in an individual retirement account or under a retirement plan for self-employed individuals or similar account or plan established pursuant to the internal revenue laws of the United States or of this state, if the owner, for more than three years after the funds become payable or distributable, has not done any of the following:
(i) Increased or decreased the principal.
(ii) Accepted payment of principal or income.
(iii) Corresponded electronically or in writing concerning the property or otherwise indicated an interest.
(B) Funds held by a business association in an individual retirement account or under a retirement plan for self-employed individuals or a similar account or plan created pursuant to the internal revenue laws of the United States or the laws of this state shall not escheat to the state if, during the previous three years, the owner has owned another such account, plan, or any other deposit or account with the business association and, with respect to that deposit, account, or plan, the owner has done any of the acts described in clause (i), (ii), or (iii) of subparagraph (A), and the business association has communicated electronically or in writing with the owner, at the address to which communications regarding that deposit, account, or plan are regularly sent, with regard to the account or plan that would otherwise escheat under subparagraph (A). For purposes of this subparagraph, “communications” includes account statements or statements required under the internal revenue laws of the United States.
(C) These funds are not payable or distributable within the meaning of this subdivision unless either of the following is true:
(i) Under the terms of the account or plan, distribution of all or a part of the funds would then be mandatory.
(ii) For an account or plan not subject to mandatory distribution requirement under the internal revenue laws of the United States or the laws of this state, the owner has attained 70
1/2
years of age.
(7) Any wages or salaries that have remained unclaimed by the owner for more than one year after the wages or salaries become payable.
(b) For purposes of this section, “service charges” means service charges imposed because of the inactivity contemplated by this section.
(c) A holder shall, commencing on or before January 1, 2018, regard the following transactions that are initiated electronically and are reflected in the books and records of the banking or financial organization as evidence that an owner has increased or decreased the amount of the funds or deposit in an account, for purposes of paragraphs (1) and (2) of subdivision (a):
(1) A single or recurring debit transaction authorized by the owner.
(2) A single or recurring credit transaction authorized by the owner
(3) Recurring transactions authorized by the owner that represent payroll deposits or deductions.
(4) Recurring credits authorized by the owner or a responsible party that represent the deposit of any federal benefits, including social security benefits, veterans’ benefits, and pension payments.

Summary: Existing law prescribes the circumstances under which property held or owing by a business association escheats to the state. Existing law specifies that any demand, savings, or matured time deposit, or account subject to a negotiable order of withdrawal, made with a banking organization escheats to the state if the owner, for more than three years, has not increased or decreased the amount of the deposit. Existing law specifies that any demand, savings, or matured time deposit, or matured investment certificate, or account subject to a negotiable order of withdrawal, or other interest in a financial organization, escheats to the state when the owner, for more than three years, has not increased or decreased the amount of the funds or deposit. This bill would require, commencing on or before January 1, 2018, for purposes of determining whether the above-described property escheats to the state, that a holder, as defined in existing law, regard specified transactions that are initiated electronically and are reflected in the books and records of a banking or financial organization as evidence of an increase or decrease in the amount of the funds or deposit in an account held by the banking or financial organization.

An act to amend Section 1513 of the Code of Civil Procedure, relating to unclaimed property.


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

SECTION 1.
Section 98.7 of the Labor Code is amended to read:
98.7.
(a)
(1)
Any person who believes that he or she has been discharged or otherwise discriminated against in violation of any law under the jurisdiction of the Labor Commissioner may file a complaint with the division within six months after the occurrence of the violation. The six-month period may be extended for good cause. The complaint shall be investigated by a discrimination complaint investigator in accordance with this section. The Labor Commissioner shall establish procedures for the investigation of discrimination complaints. A summary of the procedures shall be provided to each complainant and respondent at the time of initial contact. The Labor Commissioner shall inform complainants charging a violation of Section 6310 or 6311, at the time of initial contact, of his or her right to file a separate, concurrent complaint with the United States Department of Labor within 30 days after the occurrence of the violation.
Each complaint of unlawful discharge or discrimination shall be assigned to a discrimination complaint investigator who shall prepare and submit an investigation report to the Labor Commissioner based on an investigation of the complaint.
(2) The division may, with or without receiving a complaint, commence an investigation of an employer that it suspects to have discharged or otherwise discriminated against an individual in violation of any law under the jurisdiction of the Labor Commissioner in accordance with this section. The assigned investigator shall prepare and submit an investigation report to the Labor Commissioner based upon the investigation.
(b)
Each complaint of unlawful discharge or discrimination shall be assigned to a discrimination complaint investigator who shall prepare and submit a report to the Labor Commissioner based on an investigation of the complaint.
The Labor Commissioner may designate the chief
deputy or
deputy, the
assistant Labor
Commissioner
Commissioner,
or the chief counsel to receive and review
the
investigation
reports.
The investigation
An investigation
shall include,
where
if
appropriate, interviews with the complainant,
respondent,
if there is one, the employer,
and any witnesses who may have information concerning
the alleged
a possible
violation, and a review of any documents that may be relevant to the
disposition of the complaint.
investigation.
The identity of a witness shall remain confidential unless the identification of the witness becomes necessary to proceed with the investigation or to prosecute an action to enforce a determination. The investigation report submitted to the Labor Commissioner or designee shall include the statements and documents obtained in the investigation, and the findings of the investigator concerning whether a violation occurred. The Labor Commissioner may hold an investigative hearing
whenever
if
the Labor Commissioner determines, after review of the investigation report, that a hearing is necessary to fully establish the facts. In the hearing the investigation report shall be made a part of the
record
record,
and the
complainant and respondent
complainant, if there is one, and the employer
shall have the opportunity to present further evidence. The Labor Commissioner shall issue, serve, and enforce any necessary subpoenas.
(c) If the Labor Commissioner determines a violation has occurred, he or she shall notify the
complainant and respondent
complainant, if there is one, and the employer
and direct the
respondent
employer
to cease and desist from the violation and take any action deemed necessary to remedy the violation, including,
where
if
appropriate, rehiring or reinstatement, reimbursement of lost wages and interest thereon, payment of reasonable attorney’s fees associated with any hearing held by the Labor Commissioner
in investigating the complaint,
related to the investigation,
and the posting of notices to employees. If the
respondentcompensation or equitable relief as is appropriate under the circumstances of the case. The Labor Commissioner shall petition the court for appropriate temporary relief or restraining order unless he or she determines good cause exists for not doing so.
(d) (1) If the Labor Commissioner determines no violation has occurred, he or she shall notify the
complainant and respondent
complainant, if there is one, and the employer
and shall dismiss the
complaint.
complaint or close the investigation.
The Labor Commissioner may direct
the
a
complainant to pay reasonable attorney’s fees associated with any hearing held by the Labor Commissioner if the Labor Commissioner finds
the
that a
complaint was frivolous, unreasonable, groundless, and was brought in bad faith.
The
A
complainant may, after notification of the Labor Commissioner’s determination to dismiss a complaint, bring an action in an appropriate
court, which
court that
shall have jurisdiction to determine whether a violation
occurred, and
occurred and,
if so, to restrain the violation and order all appropriate relief to remedy the violation. Appropriate relief includes, but is not limited to, rehiring or reinstatement of the complainant, reimbursement of lost wages and interest thereon, and other compensation or equitable relief as is appropriate under the circumstances of the case.
When dismissing
If the Labor Commission dismisses
a complaint, the Labor Commissioner shall advise
the
a
complainant of his or her right to bring an action in an appropriate court if he or she disagrees with the determination of the Labor Commissioner, and in the case of an alleged violation of Section 6310 or 6311, to file a complaint against the state program with the United States Department of Labor.
(2) The filing of a timely complaint against the state program with the United States Department of Labor shall stay the Labor Commissioner’s dismissal of the division complaint until the United States Secretary of Labor makes a determination regarding the alleged violation. Within 15 days of receipt of that determination, the Labor Commissioner shall notify the parties whether he or she will reopen the complaint filed with the division or whether he or she will reaffirm the dismissal.
(e) The Labor Commissioner shall notify the
complainant and respondent
complainant, if there is one, and the employer
of his or her determination under subdivision (c) or paragraph (1) of subdivision (d), not later than 60 days after the filing of the
complaint.
complaint, or commencing the investigation pursuant to paragraph (2) of subdivision (a).
Determinations by the Labor Commissioner under subdivision (c) or (d) may be appealed by
the
a
complainant or
respondent
employer
to the Director of Industrial Relations within 10 days following notification of the Labor Commissioner’s determination. The appeal shall set forth specifically and in full detail the grounds upon which the appealing party considers the Labor Commissioner’s determination to be unjust or unlawful, and every issue to be considered by the director. The director may consider any issue relating to the initial determination and may modify, affirm, or reverse the Labor Commissioner’s determination. The director’s determination shall be the determination of the Labor Commissioner. The director shall notify the
complainant
complainant, if there is one,
and
respondent
employer
of his or her determination within 10 days of receipt of the appeal.
(f) The rights and remedies provided by this section do not preclude an employee from pursuing any other rights and remedies under any other law.
(g) In the enforcement of this section, there is no requirement that an individual exhaust administrative remedies or procedures.
SECTION 1.
Section 98.74 is added to the
Labor Code
,
immediately following Section 98.7
, to read:
98.74.
In addition to receiving employee complaints pursuant to Section 98.7, the division may, with or without receiving a complaint from an employee, commence an investigation, issue a citation, or bring an action against an employer who discharges or otherwise discriminates against an individual in violation of any law under the jurisdiction of the Labor Commissioner.

Summary: Existing law authorizes any person who believes that he or she has been discharged or otherwise discriminated against in violation of any law under the jurisdiction of the Labor Commissioner to file a complaint, as specified, with the Division of Labor Standards Enforcement, which is within the Department of Industrial Relations, and requires the commissioner to establish procedures for the investigation of discrimination complaints. This bill would authorize the division to, with or without receiving a complaint from an employee, commence an investigation, issue a citation, or bring an action against investigation of an employer who discharges or otherwise discriminates that it suspects to have discharged or otherwise discriminated against an individual in violation of any law under the jurisdiction of the Labor Commissioner.

An act to
add Section 98.74 to
amend Section 98.7 of
the Labor Code, relating to employment.


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

SECTION 1.
This act shall be known and may be cited as the Mental Health Justice Act.
SEC. 2.
The Legislature finds and declares the following:
(a) Exposure to violence increases the risk of developing a mental health condition such as post-traumatic stress disorder. Children in underserved communities are more likely to be exposed to violence than other children.
(b) Ten times as many people with mental illness are in prisons and jails today than are in mental health treatment facilities.
(c) Correctional facilities spend two to three times more money on adults with mental illnesses than they do on people who do not live with a mental illness.
(d) Despite overall decreasing prison populations, California’s prisons are experiencing increasing demand for mental health treatment services as prison inmates require mental health treatment at higher rates. This number is anticipated to continue to increase in the next five years and beyond.
(e) In California, the annual prison cost for an inmate in the general population is $51,000, while the annual community housing and outpatient treatment costs for a person with mental illness are 60 percent less at $20,412.
(f) Nearly half of all prisoners in California are mentally ill and have received psychiatric treatment within the past year. This number has almost doubled in the last 15 years, making jails and prisons the de facto mental health system.
(g) Individuals with mental illnesses tend to stay longer in prison or jail and, when released, are at a higher risk of returning to prison or jail than those without these illnesses.
(h) Mental health court participants have a significantly lower (47 percent) recidivism rate compared to similar defendants in traditional court.
(i) Mental health courts allow for the consideration of a defendant’s mental health status during court proceedings and have shown to save $7 in costs for every $1 spent.
(j) According to the United States Supreme Court, conditions in California prisons exacerbate mental health issues significantly. Offenders with mental illness are often subjected to higher rates of physical and sexual trauma, forced restraints, solitary confinement, and overmedication while incarcerated. Those who are kept in isolation are at higher risk for psychiatric injury, self-harm, and suicide.
(k) A defendant’s mental illness should inform case processing and the nature of any criminal charges, in alignment with public safety and a defendant’s constitutional rights.
(l) California must increase diversion programs to redirect defendants with mental illness away from prisons and jails, which exacerbate mental illnesses, impede treatment, and increase costs, and toward proven mental health treatment services.
SEC. 2.
SEC. 3.
Chapter 16 (commencing with Section 1425) is added to Title 10 of Part 2 of the Penal Code, to read:
CHAPTER  16. Mental Health Treatment
1425.
(a)If a defendant has pled guilty or nolo contendere to, or been convicted of, an offense that will result in a sentence to state prison or county jail, the defendant or the prosecutor may submit evidence that the defendant suffers from a diagnosable mental illness that was a substantial factor that contributed to the defendant’s criminal conduct. The evidence shall be filed after the defendant’s plea or conviction, but before his or her sentencing.
(b)If evidence is submitted pursuant to subdivision (a), the court shall consider that evidence in conjunction with the defendant’s sentencing.
(c)Upon consideration of the evidence submitted pursuant to subdivision (a), notwithstanding any other law, if the court determines that it is in the best interests of public safety, the court may order one or more of the following:
(1)(A)That the defendant serve, if the defendant agrees, all or a part of his or her sentence in a residential mental health treatment facility instead of in the state prison or county jail, unless that placement would pose an unreasonable risk of danger to public safety.
(B)This paragraph does not apply to a defendant subject to Section 1170.12.
(2)The Department of Corrections and Rehabilitation or county jail authority, as applicable, to place the defendant in a mental health program within the state prison or county jail system, respectively, at a level of care determined to be appropriate by the department’s mental health staff or county mental health staff, within 30 days, of the defendant’s placement in the state prison or county jail.
(3)The Department of Corrections and Rehabilitation or the county jail authority, as applicable, regardless of the type of crime committed to prepare a postrelease mental health treatment plan six months prior to the defendant’s release to parole or postrelease community supervision. The treatment plan shall specify the manner in which the defendant will receive mental health treatment services following that release, and shall address, if applicable and in the discretion of the court, medication management, housing, and substance abuse treatment.
(d)(1)The defendant or prosecutor may, at any time, petition the court for approval to transfer the defendant from a residential mental health treatment facility to a mental health program within the state prison or county jail for the remainder of the defendant’s sentence.
(2)The defendant, prosecutor, Department of Corrections and Rehabilitation, or county jail authority, as applicable, may, at any time, petition the court for permission to remove the defendant from a mental health program within the state prison or county jail system, respectively.
(3)The defendant, prosecutor, Department of Corrections and Rehabilitation, or county jail authority, as applicable, may, at any time, petition the court for dismissal of the requirement that the Department of Corrections and Rehabilitation or county jail authority, respectively, prepare a postrelease mental health treatment plan.
(e)The defendant shall have the right to counsel for all proceedings under this section.
1425.
(a) A defendant who has pleaded guilty or nolo contendere to, or was convicted of, a felony or misdemeanor and who currently is, or at any prior time was, eligible for public mental health services due to serious mental illness or who currently is, or at any prior time was, eligible for Social Security Disability Insurance benefits due to a diagnosed mental illness may petition the court for a sentence that includes mental health treatment. The petition shall be filed after the defendant’s plea or conviction, but before his or her sentencing.
(b) The defendant shall bear the burden of establishing by a preponderance of the evidence that he or she meets the criteria in subdivision (a).
(c) If the court determines that the defendant has met his or her burden, as described in subdivision (b), and that it is in the public interest, the court may order that the defendant’s sentence include one or more of the following:
(1) (A) A requirement that the defendant serve, if the defendant agrees, all or a part of his or her sentence in a residential mental health treatment facility instead of in the state prison or a county jail, if that placement would not pose an unreasonable risk of danger to public safety and is in the interest of justice pursuant to Section 1385.
(B) A defendant is not eligible for subparagraph (A) if his or her current plea or conviction is for a violent felony, as defined in subdivision (c) of Section 667.5, or if the defendant is required by statute to serve his or her entire sentence only in state prison.
(2) Regardless of the offense to which the defendant pleaded guilty or nolo contendere or for which the defendant was convicted, a requirement that the Department of Corrections and Rehabilitation or county jail authority, as applicable, place the defendant in a mental health program within the state prison or county jail system at a level of care determined to be appropriate by the department’s mental health staff or county mental health staff, within 30 days of the defendant’s sentencing.
(3) Regardless of the offense to which the defendant pleaded guilty or nolo contendere or for which the defendant was convicted, a requirement that the Department of Corrections and Rehabilitation or the county jail authority, as applicable, prepare a postrelease mental health treatment plan six months prior to the defendant’s release from custody. The treatment plan shall specify the manner in which the defendant will receive mental health treatment services following release from custody and shall address, if applicable and at the discretion of the court, medication management, housing, and substance abuse treatment.
(d) At any time, upon a petition from the defendant or prosecutor, if it is in the public interest, the court may recall a sentence that includes a mental health treatment order issued under this section and either resentence the defendant to other mental health treatment authorized under subdivision (c) or resentence the defendant in the same manner as if he or she had not previously been sentenced with application of this section. The defendant shall receive credit for the time he or she served on the prior sentence.
(e) The defendant shall have the right to counsel for all proceedings under this section.
SEC. 3.
SEC. 4.
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 prohibits a person from being tried, adjudged to punishment, or having his or her probation, mandatory supervision, postrelease community supervision, or parole revoked while that person is mentally incompetent. Existing law establishes a process by which a defendant’s mental competency is evaluated and by which the defendant receives treatment, including, if applicable, antipsychotic medication, with the goal of returning the defendant to competency. Existing law credits time spent by a defendant in a state hospital or other facility as a result of commitment during the process toward the term of any imprisonment for which the defendant is sentenced. Existing law, as added by Proposition 184, adopted November 8, 1994, and amended by Proposition 36, adopted November 6, 2012, commonly known as the Three Strikes Law, prohibits certain recidivist offenders from being committed to any facility other than a state prison. This bill would authorize, if a defendant has pled guilty or nolo contendere to, or been convicted of, an offense that will result in a sentence to state prison or county jail, the defendant or the prosecutor submit evidence that the defendant suffers from a diagnosable mental condition that was a substantial factor that contributed to the defendant’s criminal conduct. The bill would require that the evidence be submitted after the defendant’s conviction, but before his or her sentencing. The bill would require the court to consider any evidence submitted as described above in conjunction with the defendant’s sentencing, and would authorize the court to order the Department of Corrections and Rehabilitation or county jail authority, as applicable, to place the defendant in a residential mental health treatment facility. This placement would not be available to a defendant who is subject to the Three Strikes Law. The bill would also authorize the court to order the department or jail authority to place the defendant in a mental health program within the state prison or county jail, respectively. The bill would provide that the defendant has the right to counsel for these proceedings. This bill would authorize a defendant who is or has been eligible for public mental health services due to a serious mental illness or who is eligible for Social Security Disability Insurance benefits due to a diagnosed mental illness to petition the court, after the defendant’s plea or conviction but prior to sentencing, for a sentence that includes mental health treatment. The bill would authorize a court, if it finds that the defendant has shown that he or she meets the criteria by a preponderance of the evidence, to order the Department of Corrections and Rehabilitation or the county authority to provide specified mental health service, including placement in a residential mental health treatment facility instead of state prison or county jail, placement in a mental health program within the state prison or county jail, or preparation of a postrelease mental health treatment plan. The bill would authorize the court, upon petition of the defendant or the prosecution, to recall a sentence that includes a mental health order and resentence the defendant to other mental health treatment or resentence the defendant without mental health treatment. The bill would provide that the defendant has the right to counsel for these proceedings. By imposing additional duties upon county jail authorities, this bill would create 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 add Chapter 16 (commencing with Section 1425) to Title 10 of Part 2 of the Penal Code, relating to prisoners.


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

SECTION 1.
Section 144.9 is added to the Labor Code, to read:
144.9.
(a) As used in this section:
(1) “Division” means the Division of Occupational Safety and Health.
(2) “Electrocautery device” means a device that is electrically heated to cut, ablate, or coagulate human tissue for therapeutic purposes.
(3) “Electrosurgical device” means a device that uses a radio frequency electric current passing through the patient to cut, ablate, or coagulate human tissue for therapeutic purposes.
(4) “Energy-based device” means a device that uses energy to ablate, cauterize, or mechanically manipulate target human tissue including lasers, electrosurgical generators, broadband light sources, ultrasonic instruments, plasma generators, bone saws, and drills.
(5) “Health facility” means a health facility as defined in subdivision (a) of Section 1250 of the Health and Safety Code.
(6) “Plume” means noxious airborne contaminants generated as byproducts of the use of energy-based devices, electrosurgical devices, electrocautery devices, or mechanical tools during surgical, diagnostic, or therapeutic procedures.
(7) “Plume scavenging system” means smoke evacuators, laser plume evacuators, plume scavengers, and local exhaust ventilators that capture and neutralize plume at the site of origin and before plume can make ocular contact or contact with the respiratory tract of employees.
(b) (1) The division, by June 1, 2017, shall convene an advisory committee to develop a regulation that requires a health facility to evacuate or remove plume through the use of a plume scavenging system in all settings that employ techniques that involve the creation of plume. The advisory committee may include health facilities, practicing physicians and surgeons from affected specialties, registered nurses and other affected health care personnel, labor and specialty organizations representing affected registered nurses, labor and specialty organizations representing other affected health care personnel, and other stakeholders.
(2) By June 1, 2018, the division shall submit to the board the proposed regulation requiring a health facility to evacuate or remove plume through the use of a plume scavenging system in all settings that employ techniques that involve the creation of plume.
(3) In developing the regulation, the division shall do all of the following:
(A) Evaluate using as a benchmark the standards titled “Systems for evacuation of plume generated by medical devices” (ISO 16571) adopted by the International Organization for Standardization and the standards titled “Plume scavenging in surgical, diagnostic, therapeutic, and aesthetic settings” (CSA Z305.13-13) adopted by the CSA Group.
(B) Take into consideration recommendations on the evacuation of plume from the federal Occupational Safety and Health Administration and National Institute for Occupational Safety and Health.
(C) Take into consideration the standards titled “Systems for evacuation of plume generated by medical devices” (ISO 16571) adopted by the International Organization for Standardization in developing a standard establishing how much plume shall be captured by a plume scavenging system.
(D) Include a requirement in the regulation for employers to provide training to all workers foreseeably participating in procedures that involve the creation of plume. The training shall include, but not be limited to, general education on the contents of plume, the circumstances in which it is generated, the associated health and safety hazards, and appropriate use of the plume scavenging equipment and systems utilized by the health facility. The training shall be designed to provide an opportunity for interactive questions and answers with a person knowledgeable about occupational exposure to plume and the specific equipment utilized to scavenge plume.
(c) The board shall, by July 1, 2019, adopt the proposed regulation of the division, except as specified in subdivision (f), requiring a health facility to evacuate or remove plume through the use of a plume scavenging system in all settings that employ techniques that involve the creation of plume.
(d) (1) Nothing in this section alters, amends, expands, or reduces existing general room ventilation standards or requirements. These plume scavenging standards are in addition to general room ventilation standards or requirements, and compliance with general room ventilation standards shall not satisfy the requirements of this section.
(2) Evidence that the plume scavenging system conforms to the minimum requirements of this section when installed, operated, and maintained in accordance with the manufacturer’s instructions, shall be provided by the manufacturer.
(e) The use of surgical masks shall not satisfy the requirements of this section. The use of respirators shall not satisfy the requirements of this section except when, due to medical necessity, the plume scavenging system is not able to be located where it effectively captures plume.
(f) This section shall not limit the authority of the division to develop a regulation, or the authority of the board to adopt a regulation, that is broader in scope or broader in application than required by this section.
SEC. 2.
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 Occupational Safety and Health Standards Board within the Department of Industrial Relations promulgates and enforces occupational safety and health standards for the state, including standards dealing with toxic materials and harmful physical agents. Under existing law, the Division of Occupational Safety and Health is required to enforce all occupational safety and health standards, as specified. A violation of these standards and regulations under specific circumstances is a crime. This bill would, by June 1, 2017, require the division to convene an advisory committee to develop a regulation that requires a health facility to evacuate or remove plume through the use of a plume scavenging system in all settings that employ techniques that involve the creation of plume and would authorize certain entities and people to be on the advisory committee, including, among others, practicing physicians and surgeons from affected specialties. The bill would require the division, in developing the regulation to do certain things, including evaluating the use of certain standards adopted by specified organizations as a benchmark. The bill would also require the division, when developing the proposed regulation, to take into consideration recommendations on the evacuation of plume from the federal Occupational Safety and Health Administration or National Institute for Occupational Safety and Health. The bill would, by June 1, 2018, require the division to submit to the board the proposed regulation. The bill would, by July 1, 2019, require the board to adopt the proposed regulation. The bill would provide that compliance with general room ventilation standards or the use of surgical masks does not satisfy the requirements for protection from surgical plumes under these provisions. The bill would provide that the use of respirators does not satisfy the requirements for protection from surgical plumes under these provisions, except as specified. The bill would require the manufacturer of a plume scavenging system to provide evidence that the system meets specified minimum requirements when installed, operated, and maintained in accordance with the manufacturer’s instructions. The bill would specify that these provisions do not limit the authority of the division to develop, or limit the authority of the board to adopt, a regulation with a broader scope or broader application than required by these provisions. By expanding the definition of an existing 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 add Section 144.9 to the Labor Code, relating to occupational safety and health.


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

SECTION 1.
Section 14103 of the Financial Code is amended to read:
14103.
The bylaws shall prescribe the manner in which the business of the credit union shall be conducted with reference to the following matters:
(a) The purpose of the credit union.
(b) The qualification for membership.
(c) Determination of the month, time and place of the annual meeting; the manner of conducting meetings; the method by which members shall be notified of meetings; and the number of members which shall constitute a quorum.
(d) The authorized number of directors, the number of directors necessary to constitute a quorum, and the powers and duties of officers elected by the directors.
(e) The membership, powers, and duties of the supervisory or audit committee, as applicable.
(f) The membership, powers, and duties of the credit committee or if applicable, the general powers, responsibilities and duties of the credit manager.
(g) The manner in which the bylaws may be amended.
SEC. 2.
Section 14252 of the Financial Code is amended to read:
14252.
(a) A credit union with total assets equal to or greater than ten million dollars ($10,000,000) shall, within 105 days after the end of each fiscal year or within any extended time that the commissioner may specify, file with the commissioner an audit report for the fiscal year.
(b) The audit report called for in subdivision (a) shall comply with all of the following provisions:
(1) The audit report shall contain the audited financial statements of the credit union for, or as of the end of, the fiscal year, prepared in accordance with generally accepted accounting principles that the commissioner may specify, and any other information that the commissioner may specify.
(2) The audit report shall be based upon an audit of the credit union, conducted in accordance with generally accepted auditing standards, and any other requirements that the commissioner may specify.
(3) The audit report shall be prepared by an independent certified public accountant or independent public accountant who is acceptable to the commissioner.
(4) The audit report shall include, or be accompanied by, a certificate or opinion of the independent certified public accountant or independent public accountant that is satisfactory in form and content to the commissioner. If the certificate or opinion is qualified, the commissioner may order the credit union to take any action that the commissioner may find necessary or advisable to enable the independent certified public accountant or independent public accountant to remove the qualification.
(c) A credit union with total assets of less than ten million dollars ($10,000,000) shall, within 105 days after the end of each fiscal year or within any extended time that the commissioner may specify, file with the commissioner an audit report for the fiscal year.
(d) The audit report called for in subdivision (c) may comply with all the provisions of subdivision (b), or may consist of alternative procedures acceptable to the commissioner. An alternative procedures audit may be performed by any of the following:
(1) An independent certified public accountant.
(2) An independent public accountant.
(3) The credit union’s supervisory or audit committee, as applicable, provided that the audit complies with the requirements of Section 14253.
(e) Notwithstanding subdivision (d), the commissioner may reject an alternative procedures audit that he or she determines is not satisfactory. If the commissioner rejects an alternative procedures audit for any reason, he or she may order a credit union to obtain an audit that is satisfactory to the commissioner.
(f) The commissioner may, by order or regulation, either unconditionally or upon specified terms and conditions, grant an exemption from this section in any case where the commissioner finds that the requirements of this section are not necessary or advisable.
SEC. 3.
Section 14453 of the Financial Code is amended to read:
14453.
The board of directors of every credit union shall have the general management of the affairs, funds, and records of the credit union. The board shall meet on a regular basis, not less than quarterly, as reasonably determined by the board. The board may appoint an executive committee of no fewer than three directors, to serve at its pleasure, to act as expressly approved by the board of directors in accordance with the laws and regulations.
SEC. 4.
Section 14456 of the Financial Code is amended to read:
14456.
Unless the bylaws expressly reserve any or all of the following duties to the members, the directors have all of the following special duties:
(a) To act upon all applications for membership. The directors may delegate the power to approve applications for new membership to: (1) the chairperson of a membership committee or to an executive committee; or (2) any officer, director, committee member, or employee, pursuant to a written membership plan adopted by the board of directors.
(b) To expel members for any of the following causes:
(1) Conviction of a criminal offense involving moral turpitude.
(2) Failure to carry out contracts, agreements, or obligations with the credit union.
(3) Refusal to comply with the provisions of this division or of the bylaws.
Any members who are expelled by the board of directors have the right to appeal therefrom to the members, in which event, after hearing, the order of suspension may be revoked by a two-thirds vote of the members present at a special meeting to consider the matter.
(c) To determine from time to time the interest rate on obligations with members and to authorize the payment of interest refunds to borrowing members.
(d) To fix the maximum number of shares which may be held by, and, in accordance with Section 15100, establish the maximum amount of obligations which may be entered into with, any one member.
(e) To declare dividends on shares in accordance with the credit union’s written capital structure policy and to determine the interest rate or rates which will be paid on certificates for funds.
(f) To amend the bylaws, except where membership approval is required.
(g) To fill vacancies in the credit committee, and to temporarily fill vacancies caused by the suspension of any or all members of the credit committee, pending a meeting of the members to determine whether to affirm the suspension and vacate the office, or to reinstate the member or members.
(h) To direct the deposit or investment of funds, except loans to members.
(i) To designate alternate members of the credit committee who shall serve in the absence or inability of the regular members to perform their duties.
(j) To perform or authorize any action not inconsistent with law or regulation and not specifically reserved by the bylaws for the members, and to perform any other duties as the bylaws may prescribe.
SEC. 5.
Section 14550 of the Financial Code is amended to read:
14550.
Every credit union shall have a supervisory committee of at least three persons, provided that the number of members on the committee is an odd number, each of whom shall be a member of the credit union and elected by the members of the credit union. In the alternative, the board of directors may establish an audit committee subject to the requirements of Section 14556.
SEC. 6.
Section 14556 is added to the Financial Code, to read:
14556.
(a) The board of directors may, by resolution, establish an audit committee in lieu of a supervisory committee. An audit committee that meets all the requirements of this section shall be deemed to satisfy the requirements for a supervisory committee set forth in Sections 14550 to 14555, inclusive, or in any applicable bylaw provision.
(b) The vote of the board of directors to establish an audit committee in lieu of a supervisory committee shall be affirmed by a majority vote of members voting. Following the affirmative vote of the membership, the supervisory committee shall be deemed dissolved upon the appointment of an audit committee by the board of directors.
(c) The audit committee shall consist of at least three persons, provided that it is an odd number, each of whom shall be a member of the credit union and appointed by a majority of the board of directors. The audit committee may be comprised of directors, or both directors and non-directors, provided that no less than a majority of the members of the audit committee at any given time shall be comprised of directors. No member of the audit committee shall serve as a member of the credit committee, as the credit manager, as the board chairman, or as an employee of the credit union.
(d) The audit committee shall carry out the responsibilities set forth in subdivision (c) of Section 14551 and Sections 14551.5 and 14553 and shall:
(1) Ensure that the credit union complies with Section 14252.
(2) Ensure that the credit union maintains an effective internal audit program, including a system of internal controls and individuals with sufficient training and experience to adequately and timely review all key areas of a credit union’s operations.
(e) The board of directors may, by subsequent resolution, reestablish a supervisory committee in lieu of an audit committee, which shall be affirmed by membership vote. The audit committee shall be deemed dissolved upon the election of a supervisory committee by the membership.
SEC. 7.
Section 14804 of the Financial Code is amended to read:
14804.
The members of a credit union shall hold an annual meeting for the election of: (a) directors; (b) a supervisory committee, unless the board of directors has appointed an audit committee pursuant to Section 14556; and (c) a credit committee, if provided for in its bylaws. The annual meeting shall be held upon such notice and at such time and place as the bylaws provide.
SEC. 8.
Section 14950 of the Financial Code is amended to read:
14950.
(a) Every credit union may enter into obligations with its members upon the approval of the credit committee or, in the alternative, the credit manager, subject to the terms and conditions established by the board of directors pursuant to Section 15100.
(b) (1) The board of directors of a credit union shall adopt a policy governing the acceptance by the credit union of notes receivable from nonmembers as consideration for the sale of assets owned by the credit union through bona fide transactions.
(2) No credit union may accept notes receivable from nonmembers as consideration for the sale of assets owned by the credit union except in accordance with a policy adopted by the board of directors pursuant to paragraph (1).
(3) Transactions subject to this subdivision shall not be deemed to be loans to nonmembers for purposes of Section 14750.
(c) Notwithstanding subdivision (a), a credit union may permit a nonmember to participate in an obligation or extension of credit to a member as a joint applicant, co-obligor, coborrower, surety, or guarantor. An obligation or extension of credit made pursuant to this subdivision shall not be deemed a violation of subdivision (b) of Section 14800. Except as otherwise permitted by statute or regulation, the credit union shall not extend any other benefit or service of the credit union to the nonmember solely as a result of participation as a joint applicant, co-obligor, coborrower, surety, or guarantor unless the nonmember is thereafter admitted to membership.
SEC. 9.
Section 14951 of the Financial Code is repealed.
SEC. 10.
Section 15050 of the Financial Code is amended to read:
15050.
(a) For purposes of this section, the following definitions shall apply:
(1) “Credit manager” means any individual, regardless of title, designated pursuant to Section 14600 to fulfill the duties of a credit manager.
(2) “Obligation” means any loan or approved line of credit, including both used and unused portions, on which the official is a borrower, coborrower, cosigner, endorser, or guarantor.
(3) “Official” means a director, member of the supervisory committee, member of the audit committee, member of the credit committee, credit manager, president, or chief executive officer of a credit union.
(b) No credit union shall enter into any obligation with any official, directly or indirectly, unless (1) the obligation complies with all lawful requirements of this division with respect to obligations permitted for other members of the credit union, (2) the obligation is not on terms more favorable than those extended to other members of the credit union, and (3) the obligation is entered into in accordance with a written policy adopted by the directors establishing that all officials shall have an equal opportunity to enter into obligations with the credit union.
(c) No credit union shall enter into any obligation with any official, directly or indirectly, unless all of the following requirements are satisfied:
(1) Upon the making of the obligation, the aggregate amount of obligations outstanding to all officials, except obligations fully secured by shares, shall not exceed 20 percent of the aggregate dollar amount of all savings capital of the credit union.
(2) The obligation, except any portion of an obligation fully secured by shares, shall not exceed the maximum obligation to the credit union set forth in subdivisions (b) and (c) of Section 15100.
(3) Any obligation that would cause the aggregate amount of obligations outstanding to the official to exceed fifty thousand dollars ($50,000), excluding any portion fully secured by shares, shall be approved by the credit committee or the credit manager, and by the board of directors. An official shall not take part in any credit decision, directly or indirectly, for his or her benefit and shall not be present during any portion of any committee or board meeting where his or her credit application is under consideration.
(4) The names of members of the credit committee, the credit manager, and board of directors who voted to authorize or ratify the obligation shall be entered in their respective minutes.
(d) No credit union shall permit an official to become surety for any obligation created by the credit union for anyone other than a member of his or her immediate family.
(e) No credit union shall enter into any obligation with any credit manager or any officer employed by the credit union unless the obligation is in compliance with all requirements of this division with respect to obligations permitted for other nonemployee members, and not on terms more favorable than those extended to other employees, and approved by the board of directors.
SEC. 11.
Section 15100 of the Financial Code is amended to read:
15100.
(a) The board of directors shall establish written policies which shall set forth the policies of the credit union with respect to any obligation that is offered to the members of the credit union. The written policies shall set forth the maximum amounts and terms for any obligation offered to the members, including, but not limited to, the following information:
(1) For loans, the written policies shall set out the terms for unsecured loans, the maximum amount and terms for secured loans, the schedule of interest rates established pursuant to Section 15000 for each type or class of unsecured and secured loan offered to members, the maximum maturity for any loan, or, in the case of an open-end loan, the rate of repayment for any type or class of open-end loan, the limitations, if any, which shall be placed on the authority of any loan officer appointed pursuant to Sections 14602 and 14603, and, subject to the provisions of subdivisions (b) and (c), the individual limits on obligations that are applicable to all members of the credit union. Any policy developed pursuant to this section by the board of directors shall, insofar as possible, and, subject to individual creditworthiness, ensure equal access to funds available for obligations with credit union members.
(2) For obligations other than those set out in paragraph (1), the board of directors shall set out the interest rates and essential terms of the obligations offered to the members and any other information as may be required pursuant to regulations that may be adopted by the commissioner.
(b) Notwithstanding subdivision (a), no credit union policy shall permit a credit union to enter into obligations with an individual credit union member whereby the total obligations of that member, exclusive of amounts secured by shares or certificates for funds, exceed 10 percent of the aggregate dollar amount of the credit union’s savings capital.
(c) Notwithstanding subdivision (b), no credit union policy shall permit a credit union to enter into obligations with any one family whereby the total obligations of the family would be greater than the amount permitted by subdivision (b). For purposes of this article, “family” means the marital couple or any head of household together with those dependents residing with the marital couple or the head of household and those dependents attending school away from the principal residence of the marital couple or head of household.

Summary: The California Credit Union Law provides for the regulation of credit unions within the state by the Commissioner of Business Oversight. The law requires a credit union to be directed by a board of directors consisting of an odd number of directors, at least 5 in number, each of whom are a member of the credit union, to be elected by the members at their annual meeting. The law requires a credit union to have a supervisory committee of at least 3 persons, each of whom is a member of the credit union. The law authorizes the directors to delegate the approval of applications for new memberships to any officer, director, committee member, or employee pursuant to a written membership plan adopted by the board, provided the board reviews, at least quarterly, a report of membership applications approved by an officer, director, committee member, or employee. This bill would require the board to meet on a regular basis, not less than quarterly, as reasonably determined by the board. The bill would require the membership of the supervisory committee to be an odd number and would authorize, in lieu of the requirement for a supervisory committee, the establishment of an audit committee and the selection of the members of the audit committee. The bill would remove the requirement for the directors to, at least quarterly, review a report of membership applications approved by an officer, director, committee member, or employee to whom the directors delegated the authority to approve applications for new membership. The California Credit Union Law prohibits an obligation with a member that is not a natural person and results in liability to the credit union in excess of that member’s investment in the credit union unless an exception is authorized in the credit union’s bylaws and approved by the commissioner. The law authorizes any lending activity permitted pursuant to this provision to be terminated by the commissioner pursuant to a specific procedure. This bill would repeal this prohibition. The California Credit Union Law limits the circumstances when a nonmember may participate in an obligation or extension of credit to a member as a joint applicant or co-obligor. This bill would include the terms coborrower, surety, and guarantor within these provisions. The California Credit Union Law limits a credit union from entering, directly or indirectly, into any obligation with an official, and defines that term to mean a director, officer, member of the supervisory committee, or member of the credit committee of a credit union. This bill would modify that definition to remove the position of an officer, and to include the positions of a member of the audit committee, credit manager, president, and chief executive officer of a credit union. The California Credit Union Law requires any application for any loan or extension or guarantee of credit, except as specified, to state in writing the purpose for which the loan or extension or guarantee of credit is desired, and, if applicable, describe the property that is proposed to secure the loan or extension or guarantee of credit. This bill would repeal this requirement.

An act to amend Sections 14103, 14252, 14453, 14456, 14550, 14804, 14950, 15050, and 15100 of, to add Section 14556 to, and to repeal Section 14951 of, the Financial Code, relating to credit unions.


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

SECTION 1.
Section 5899 of the Welfare and Institutions Code is amended to read:
5899.
(a) The State Department of Health Care Services, in consultation with the Mental Health Services Oversight and Accountability Commission and the County Behavioral Health Directors Association of California, shall develop and administer instructions for the Annual Mental Health Services Act Revenue and Expenditure Report. The instructions shall include a requirement that the county certify the accuracy of this report. This report shall be submitted electronically to the department and to the Mental Health Services Oversight and Accountability Commission. The department and the commission shall annually post each county’s report on its website in a timely manner.
(b) The department, in consultation with the commission and the County Behavioral Health Directors Association of California, shall revise the instructions described in subdivision (a) by July 1, 2017, and as needed thereafter, to improve the timely and accurate submission of county revenue and expenditure data.
(c) The purpose of the Annual Mental Health Services Act Revenue and Expenditure Report is as follows:
(1) Identify the expenditures of Mental Health Services Act (MHSA) funds that were distributed to each county.
(2) Quantify the amount of additional funds generated for the mental health system as a result of the MHSA.
(3) Identify unexpended funds, and interest earned on MHSA funds.
(4) Determine reversion amounts, if applicable, from prior fiscal year distributions.
(d) This report is intended to provide information that allows for the evaluation of all of the following:
(1) Children’s systems of care.
(2) Prevention and early intervention strategies.
(3) Innovative projects.
(4) Workforce education and training.
(5) Adults and older adults systems of care.
(6) Capital facilities and technology needs.
(e) Based on the report required pursuant to subdivision (a), the State Department of Health Care Services, no later than nine months after the end of each fiscal year, shall collect and publicly report all of the following information, by statewide total and by individual county:
(1) Total revenue received from the Mental Health Services Act (MHSA).
(2) The amount of MHSA funds received by the counties for each of the following components of the act:
(A) Community services and supports.
(B) Prevention and early intervention.
(C) Innovation.
(D) Housing that is not funded under subparagraph (A).
(E) Workforce education and training that is not funded under subparagraph (A).
(F) Capital facilities and technological needs that are not funded under subparagraph (A).
(G) Other mental health services not reflected in subparagraphs (A) to (F), inclusive.
(3) MHSA revenues expended in the prior fiscal year.
(4) The amount of the MHSA funds expended by the counties for each of the components listed in paragraph (2).
(5) Funds held in prudent reserve by each county.
(6) Distributions from the counties’ prudent reserves.
(7) For the most recent fiscal year, the amount of unspent MHSA funds for each component listed in paragraph (2).
(8) MHSA funds subject to reversion and funds that have reverted.
(f) The information required to be reported pursuant to subdivision (e) shall be reported for each fiscal year and shall include statewide totals. The information shall be updated annually, including revisions when necessary. Revisions shall be identified as figures that have been revised from prior year reports. Annual reports shall include fiscal information for a period of not less than 10 fiscal years and shall include information for the most recent fiscal year.
(g) (1) In addition to the information required pursuant to subdivision (e), the department shall publicly report annual county program expenditures for each of the following:
(A) Program administration.
(B) Research and evaluation.
(C) Funds used to support joint powers authorities or other statewide entities.
(2) A county that cannot supply some or all of the information required by paragraph (1) shall provide an explanation as to why and shall provide a timeframe for making the information available.
(3) The department shall work with counties and other local mental health agencies to determine how best to make the information required in paragraph (1) available, including estimates. Estimated information shall be reported as an estimate.
(h) Counties may submit to the department information about programs that address the following areas:
(1) Homelessness.
(2) Criminal justice diversion or related programs.
(3) Suicide prevention.
(4) School-based mental health programs designed to reduce school failure.
(5) Employment or other programs intended to reduce unemployment.
(6) Programs intended to reduce or prevent involvement with the child welfare system.
(7) Stigma reduction.
(8) Programs specifically designed to reduce racial and ethnic disparities.
(9) Programs specifically designed to meet the needs of the following populations:
(A) Veterans.
(B) Lesbian, gay, bisexual, transgender, queer, and questioning (LGBTQQ).
(C) Children.
(D) Transition-age youth.
(E) Adults.
(F) Older adults.
(i) The department shall compile the information in subdivisions (e) to (h), inclusive, collected from counties or other local mental health agencies to promote public understanding of MHSA funds that are distributed statewide and for each county, as well as how those funds are spent and what funds remain available for expenditure.
(j) The department shall consult with the Mental Health Services Oversight and Accountability Commission, the State Controller’s Office, the Department of Finance, counties and other local mental health agencies, and any other agency required to implement this section.
(k) The department shall consolidate reporting requirements when feasible and shall propose to the appropriate policy committees of the Legislature strategies to refine and consolidate reporting requirements to meet the goals of this section.
(l) The department shall make the information required by this section available to the Legislature and the public on its Internet Web site no later than July 1, 2018, and annually thereafter.
(m) If a county does not submit the annual revenue and expenditure report described in subdivision (a) by the required deadline, the department may withhold MHSA funds until the reports are submitted.

Summary: Existing law, the Mental Health Services Act (MHSA), an initiative measure enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, establishes the Mental Health Services Oversight and Accountability Commission. Existing law requires the State Department of Health Care Services, in consultation with the Mental Health Services Oversight and Accountability Commission and the County Behavioral Health Directors Association of California, to develop and administer instructions for the Annual Mental Health Services Act Revenue and Expenditure Report, which gathers specified information on mental health spending as a result of the MHSA, including the expenditures of funds distributed to each county. This bill would require the department, based on the Annual Mental Health Services Act Revenue and Expenditure Report, to compile information, in total and by county on an annual basis, that includes, among other things, the total amount of MHSA revenue, the amount of MHSA money received and expended for each specified component of the MHSA program, and the amount of MHSA money spent on program administration. The bill would require the department to make the collected information available to the Legislature and the public on its Internet Web site no later than July 1, 2018, and annually thereafter.

An act to amend Section 5899 of the Welfare and Institutions Code, relating to mental health.


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

SECTION 1.
Section 10708 is added to the Elections Code, to read:
10708.
(a) A State Senator or Member of the Assembly who resigns from office before the expiration of his or her term shall reimburse from his or her surplus campaign funds the county or counties that hold a special election pursuant to this chapter to fill the vacancy for any expenses authorized and necessarily incurred in the preparation for, and conduct of, the special election.
(b) Expenses for which reimbursement is required pursuant to subdivision (a) shall be paid from the former officeholder’s surplus campaign funds, as defined by Section 89519 of the Government Code, to the extent he or she has funds available to do so; however, if a former officeholder violates subdivision (c) of Section 89510 of the Government Code, he or she shall be personally liable for those expenses to the extent he or she lacks sufficient surplus campaign funds to pay them.
(c) If the legislative district encompasses more than one county, the surplus campaign funds shall be prorated among the counties conducting the special election in proportion to the percentage of the district each county composes.
SEC. 2.
Section 89510 of the Government Code is amended to read:
89510.
(a) A candidate for elective state office may only accept contributions within the limits provided in Chapter 5 (commencing with Section 85100).
(b) All contributions deposited into the campaign account shall be deemed to be held in trust for expenses associated with the election of the candidate or for expenses associated with holding office.
(c) If a State Senator or Member of the Assembly decides to resign from office before the expiration of his or her term, he or she subsequently shall only use funds held pursuant to this section to pay outstanding campaign debts or reasonable expenses. Funds held pursuant to this section are subject to Section 89519 to the extent they become surplus funds.
(d) There is a rebuttable presumption that a State Senator or Member of the Assembly who
resigns
resigned
decided to do so six months before he or she vacated office. The presumption may be rebutted by objective evidence, such as evidence indicating that the former officeholder initiated or responded to an offer of employment on a particular date, that the State Senator or Member of the Assembly decided to resign greater than or less than six months before he or she vacated office.
SEC. 3.
Section 89519 of the Government Code is amended to read:
89519.
(a) Upon the 90th day after leaving an elective office, or the 90th day following the end of the postelection reporting period following the defeat of a candidate for elective office, whichever occurs last, campaign funds under the control of the former candidate or elected officer shall be considered surplus campaign funds and shall be disclosed pursuant to Chapter 4 (commencing with Section 84100).
(b) Surplus campaign funds shall be used only for the following purposes:
(1) The payment of outstanding campaign debts or elected officer’s expenses.
(2) The repayment of contributions.
(3) Donations to a bona fide charitable, educational, civic, religious, or similar tax-exempt, nonprofit organization, where no substantial part of the proceeds will have a material financial effect on the former candidate or elected officer, any member of his or her immediate family, or his or her campaign treasurer.
(4) Contributions to a political party committee, provided the campaign funds are not used to support or oppose candidates for elective office. However, the campaign funds may be used by a political party committee to conduct partisan voter registration, partisan get-out-the-vote activities, and slate mailers as that term is defined in Section 82048.3.
(5) Contributions to support or oppose a candidate for federal office, a candidate for elective office in a state other than California, or a ballot measure.
(6) The payment for professional services reasonably required by the committee to assist in the performance of its administrative functions, including payment for attorney’s fees and other costs for litigation that arises directly out of a candidate’s or elected officer’s activities, duties, or status as a candidate or elected officer, including an action to enjoin defamation, defense of an action brought for a violation of state or local campaign, disclosure, or election laws, and an action from an election contest or recount.
(7) The payment of expenses authorized and necessarily incurred in the preparation for, and conduct of, a special election, as required by Section 10708 of the Elections Code.
Surplus campaign funds shall be applied to these costs before being used for any other purpose, and any funds remaining after payment of these costs shall be used only for the purposes described in paragraph (3) of this subdivision.
(c)
A former officeholder subject to Section 10708 of the Elections Code may only use surplus funds for the purposes described in paragraphs (1) and (7) of subdivision (b) of this section. Once the costs identified in paragraph (7) of subdivision (b) are paid in full, a former officeholder may also use surplus funds for the purposes described in paragraph (3) of subdivision (b).
(d)
For purposes of this section, the payment for, or the reimbursement to the state of, the costs of installing and monitoring an electronic security system in the home or office, or both, of a candidate or elected officer who has received threats to his or her physical safety shall be deemed an outstanding campaign debt or elected officer’s expense, provided that the threats arise from his or her activities, duties, or status as a candidate or elected officer and that the threats have been reported to and verified by an appropriate law enforcement agency. Verification shall be determined solely by the law enforcement agency to which the threat was reported. The candidate or elected officer shall report an expenditure of campaign funds made pursuant to this section to the Commission. The report to the Commission shall include the date that the candidate or elected officer informed the law enforcement agency of the threat, the name and the telephone number of the law enforcement agency, and a brief description of the threat. No more than five thousand dollars ($5,000) in surplus campaign funds may be used, cumulatively, by a candidate or elected officer pursuant to this subdivision. Payments made pursuant to this subdivision shall be made during the two years immediately following the date upon which the campaign funds become surplus campaign funds. The candidate or elected officer shall reimburse the surplus fund account for the fair market value of the security system no later than two years immediately following the date upon which the campaign funds became surplus campaign funds. The campaign funds become surplus campaign funds upon sale of the property on which the system is installed, or prior to the closing of the surplus campaign fund account, whichever comes first. The electronic security system shall be the property of the campaign committee of the candidate or elected officer.
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.
SEC. 5.
The Legislature finds and declares that this bill furthers the purposes of the Political Reform Act of 1974 within the meaning of subdivision (a) of Section 81012 of the Government Code.

Summary: The California Constitution requires the Governor to immediately call an election to fill a vacancy in the Legislature. Existing law provides specific procedures for the nomination and election of candidates at any special election to fill a vacancy in the office of State Senator or Member of the Assembly. Exiting law, the Political Reform Act of 1974, provides that contributions deposited into a campaign account are deemed to be held in trust for expenses associated with the election of a candidate or for expenses associated with holding office. The act provides that campaign funds under the control of a former candidate or elected officer are considered surplus campaign funds at a prescribed time, and it prohibits the use of surplus campaign funds except for specified purposes. This bill would prohibit a State Senator or Member of the Assembly who decides to resign from office before the expiration of his or her term from subsequently using campaign funds held in trust for any purpose other than paying outstanding campaign debts or reasonable expenses. The bill would amend the list of specified purposes allowable for the use of surplus campaign funds to include the payment of expenses to hold a special election to fill the vacancy created by the Member’s resignation and would require the former Member to pay from his or her surplus campaign funds such election-related expenses, to the extent he or she has funds available to do so. Once election-related expenses are paid, this bill would limit the use of excess surplus funds to charitable certain purposes. This bill would further make a Member who, after deciding to resign, uses campaign funds for purposes other than those authorized in that circumstance personally liable for expenses to hold a special election. A violation of the provisions of the Political Reform Act of 1974 is punishable as a misdemeanor. By expanding the scope of an existing 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. The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act’s purposes upon a 23 vote of each house and compliance with specified procedural requirements. This bill would declare that it furthers the purposes of the act.

An act to add Section 10708 to the Elections Code, and to amend Sections 89510 and 89519 of the Government Code, relating to elections.


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

SECTION 1.
The Legislature finds and declares all of the following:
(a) The state has a unique obligation to children and youth in the foster care system. When the state removes children and youth from their parents, it is responsible for providing for the safety and well-being of the children and youth and for preparing them for self-sufficient adulthood.
(b) Foster youth who leave the foster care system because of age face unique challenges in seeking and obtaining employment upon leaving the system. The foster care program provides little assistance to youth in finding employment.
(c) The unemployment rate for youth who have left the foster care system because of age is estimated at 50 percent.
(d) The state is a major employer within the state, yet state law makes no provision for assisting youth who have left the foster care system because of age in becoming civil service employees of the state.
(e) The state owes a unique responsibility to foster youth in assisting them to secure permanent employment. It also has an obligation to demonstrate to private employers, by example, the importance of hiring foster youth and former foster youth.
(f) It is the intent of the Legislature to recognize the state’s role as a parent to children and youth in foster care and to assist them in securing permanent employment in state government by providing them access to needed training positions.
SEC. 2.
Article 3 (commencing with Section 54660) is added to Chapter 9 of Part 29 of Division 4 of Title 2 of the Education Code, to read:
Article  3.
Former
Foster Youth Job Readiness Training Pilot Program
54660.
(a) With moneys appropriated by the Legislature for the purposes of this article, the Sacramento County Office of Education shall develop and administer the
Former
Foster Youth Job Readiness Training Pilot Program.
(b) The purpose of the program is to prepare the
“aged out”
foster care population
that is 18 to 25, inclusive, years of age
for entry-level employment in state service.
54661.
(a) The Sacramento County Office of Education shall develop an application and create criteria for selecting eligible organizations to provide job readiness training to eligible participants.
(b) The Sacramento County Office of Education shall award grants to selected eligible organizations that shall be used for the following purposes:
(1) To pay for trainers to provide job readiness training to eligible participants.
(2) To provide a stipend to an eligible participant who satisfies both of the following:
(A) Remains actively engaged in and attends the training as set forth in his or her individual service plan.
(B) If he or she has not received a high school diploma or high school equivalency certificate, the participant shall enroll, be actively engaged in, and attend a high school equivalency exam preparation class.
(c) The Sacramento County Office of Education shall compile disaggregated data on the number of participants enrolling in the program, the number of participants completing the program, the number of participants receiving a placement after completing the program, and the number of participants receiving state employment after completing a placement. The office, upon request, shall make this data available to the Department of Human Resources and the Legislature.
(d) For purposes of this article, the following definitions apply:
(1) “Eligible organization” means an organization that satisfies all of the following:
(A) The organization is exempt from federal income taxation as an organization described in Section 501(c)(3) of the Internal Revenue Code and is in compliance with all applicable laws and requirements.
(B) The organization demonstrates expertise in providing job readiness training.
(C) Any additional criteria required by the Sacramento County Office of Education to promote the job readiness training of eligible participants.
(2) “Eligible participant” means an individual who is
25 years of age or younger and who is certified by the State Department of Social Services as
18 to 25, inclusive, years of age and who is certified by a county as being, or
having been, for at least one year at any time on or after the date that the individual turns 15 years of age, either a recipient of foster care maintenance payments under a state plan approved under Part E of Title IV of the federal Social Security Act (42 U.S.C. Sec. 670 et seq.), or in a foster care program under the responsibility of the State of California.
(3) “Job readiness training” means an individual service plan that develops core competencies that create an experience and educational base for an individual to meet the qualifications for entry-level employment in state service.
54662.
This article shall remain in effect only until January 1, 2020, and as of that date is repealed.
SEC. 3.
Section 19816.22 is added to the Government Code, to read:
19816.22.
(a) The department, in consultation with the State Department of Social Services and the Sacramento County Office of Education, shall promote the training of foster youth who participate in the
Former
Foster Youth Job Readiness Training Pilot Program (Article 3 (commencing with Section 54660), Chapter 9, Part 29, Division 4, Title 2, Education Code) in specified entry-level unclassified positions for their eventual hiring in classified positions with any state agency or department that is located within the County of Sacramento, as determined by the department.
(b) A participant in the pilot program shall not apply for a classification unless he or she meets the minimum qualifications for that classification.
(c) After a participant in the pilot program has been trained in an unclassified position for three months, but before being trained for nine months, he or she shall take a written examination for the classification in which he or she is trained, if a written examination is generally required for other applicants in that classification. The participant shall be eligible to take the written examination only after receiving a positive recommendation from the appropriate supervisor.
(d) A participant in the pilot program who does not pass the written examination for the classification in which he or she is trained, or who does not receive a favorable promotional rating, shall be released from the training program.
(e) This section shall be repealed on January 1, 2020.
SEC. 4.
The Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the need to enact Section 2 of this act
that adds Article 3 (commencing with Section 54660) to Chapter 9 of Part 29 of Division 4 of Title 2 of the Education Code
on a trial basis only, applied to one appropriately large and diverse county, before extending the act to every county in the state.
SEC. 5.
To the extent permitted by federal law, the sum of one million one hundred thousand dollars ($1,100,000) is hereby appropriated from the Consolidated Work Program Fund to the Sacramento County Office of Education for the purpose of implementing the
Former
Foster Youth Job Readiness Training Pilot Program pursuant to Article 3 (commencing with Section 54660) to Chapter 9 of Part 29 of Division 4 of Title 2 of the Education Code.
SEC. 6.
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, the State Civil Service Act, provides for filling certain state positions through the process of examinations and the establishment of eligible lists and promotional lists. Existing law requires the Department of Human Resources to administer the Personnel Classification Plan of the State of California, including the allocation of every position to the appropriate class in the classification plan. Existing law requires the Department of Human Resources to administer the Limited Examination and Appointment Program (LEAP) to provide an alternative to the traditional civil service examination and appointment process to facilitate the hiring of persons with disabilities in state civil service. Existing law requires the department to conduct competitive examinations to determine eligibility for appointment under LEAP and to refer the names of eligible applicants who meet the minimum qualifications of a job classification to the appointing powers for examination appointments, as specified. Existing law authorizes the Employment Development Department to contract with a specified nonprofit organization meeting specified criteria to manage grant programs designed to help eligible at-risk youth complete their secondary education and acquire the skills necessary to successfully transition into the workforce or enroll in postsecondary education. This bill would make legislative findings and declarations regarding the state’s responsibility for the well-being of foster youth and former foster youth. The bill, until January 1, 2020, would require the Department of Human Resources to establish an emancipated foster youth program to promote the training of qualified foster youth in specified entry-level unclassified positions for their eventual hiring in classified positions within Sacramento with any state agency or department as determined by the department. The bill would require a participant in the program to pass a written examination for the classification in which he or she is trained, if generally required for applicants in that classification, after 3 months, but before 9 months, of training. Existing law establishes a system of public elementary and secondary schools in this state, and authorizes local educational agencies throughout the state to operate schools and provide instruction to pupils in kindergarten and grades 1 to 12, inclusive. Existing law establishes the Consolidated Work Program Fund in the State Treasury for the receipt of all moneys deposited pursuant to the federal Workforce Innovation and Opportunity Act. Existing law provides that moneys in the fund are to be made available, upon appropriation by the Legislature, to the Employment Development Department, for expenditure consistent with the purposes of the federal Workforce Innovation and Opportunity Act and the state plan required by the federal Workforce Innovation and Opportunity Act. This bill would require the Sacramento County Office of Education to develop and administer the Former Foster Youth Job Readiness Training Pilot Program with moneys appropriated by the Legislature for that purpose. The bill would appropriate $1,100,000 from the Consolidated Work Program Fund to the Sacramento County Office of Education to develop an application and create criteria for selecting eligible organizations to provide job readiness training to eligible participants. The bill would require the Sacramento County Office of Education to award grants to selected eligible organizations to pay for trainers to provide job readiness training to eligible participants and to provide a stipend to eligible participants who satisfy specified conditions. The bill would require the Sacramento County Office of Education to compile information regarding participation in the program. The bill would repeal these provisions on January 1, 2020. This bill would make legislative findings and declarations as to the necessity of a special statute for the Sacramento County Office of Education. 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 add and repeal Article 3 (commencing with Section 54660) of Chapter 9 of Part 29 of Division 4 of Title 2 of the Education Code, and to add and repeal Section 19816.22 of the Government Code, relating to state employment, and making an appropriation therefor.