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

SECTION 1.
Article 3.3 (commencing with Section 20119) is added to Chapter 1 of Part 3 of Division 2 of the Public Contract Code, to read:
Article  3.3. Los Angeles Unified School District — Best Value Procurement
20119.
(a) It is the intent of the Legislature to enable school districts to use cost-effective options for building and modernizing school facilities. The Legislature has recognized the merits of the best value procurement method process in the past by authorizing its use for projects undertaken by the University of California.
(b) The Legislature also finds and declares that school districts using the best value procurement method require a clear understanding of the roles and responsibilities of each participant in the best value process. As reflected in the University of California report to the Legislature, the benefits of a best value procurement method include a reduction in contract delays, change orders, and claims producing a savings in both contract costs and administration.
(c) It is the intent of the Legislature to provide an optional, alternative procedure for bidding and building school construction projects.
20119.1.
As used in this article:
(a) “Apprenticeable occupation” means an occupation for which the Chief of the Division of Apprenticeship Standards had approved an apprenticeship program pursuant to Section 3075 of the Labor Code prior to January 1, 2015.
(b) “Best value” means a procurement process whereby the selected bidder may be selected on the basis of objective criteria for evaluating the qualifications of bidders with the resulting selection representing the best combination of price and qualifications.
(c) “Best value contract” means a competitively bid contract entered into pursuant to this article.
(d) “Best value contractor” means a properly licensed person, firm, or corporation that submits a bid for and is awarded a best value contract.
(e) “Best value score” means the resulting score when the school district divides the bidder’s price by the bidder’s qualification score.
(f) “Demonstrated management competency” means the experience, competency, capability, and capacity of the proposed management staffing to complete projects of similar size, scope, or complexity.
(g) “Financial condition” means the financial resources needed to perform the contract. The criteria used to evaluate a bidder’s financial condition shall include, at a minimum, capacity to obtain all required payment bonds and required insurance.
(h) “Governing board” or “governing board of the school district” means the governing board of the Los Angeles Unified School District.
(i) “Labor compliance” means the ability to comply with, and past conformance with, contract and statutory requirements for the payment of wages and qualifications of the workforce. The criteria used to evaluate a bidder’s labor compliance shall include, at a minimum, the bidder’s ability to comply with the apprenticeship requirements of the California Apprenticeship Council and the Department of Industrial Relations, its past conformance with such requirements, and its past conformance with requirements to pay prevailing wages on public works projects.
(j) “Project” has the same meaning as “public project” as defined in subdivision (c) of Section 22002.
(k) “Qualifications” means financial condition, relevant experience, demonstrated management competency, labor compliance, the safety record of the bidder, and, to the extent relevant, the preceding qualifications as they pertain to all subcontractors proposed to be used by the bidder for designated portions of the work.
(l) “Relevant experience” means the experience, competency, capability, and capacity to complete projects of similar size, scope, or complexity.
(m) “Safety record” shall be deemed “acceptable” if a contractor’s experience modification rate for the most recent three-year period is an average of 1.00 or less, and its average total recordable injury or illness rate and average lost work rate for the most recent three-year period do not exceed the applicable statistical standards for its business category or if the bidder is a party to an alternative dispute resolution system as provided for in Section 3201.5 of the Labor Code.
(n) “School district” means the Los Angeles Unified School District.
(o) “Skilled and trained workforce” means a workforce that meets all of the following conditions:
(1) All the workers are either skilled journeypersons or apprentices registered in an apprenticeship program approved by the Chief of the Division of Apprenticeship Standards.
(2) (A) As of January 1, 2016, at least 20 percent of the skilled journeypersons employed to perform work on the contract or project by the entity and each of its subcontractors at every tier are graduates of an apprenticeship program for the applicable occupation that was either approved by the Chief of the Division of Apprenticeship Standards pursuant to Section 3075 of the Labor Code or located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the United States Secretary of Labor.
(B) As of January 1, 2017, at least 30 percent of the skilled journeypersons employed to perform work on the contract or project by the entity and each of its subcontractors at every tier are graduates of an apprenticeship program for the applicable occupation that was either approved by the Chief of the Division of Apprenticeship Standards pursuant to Section 3075 of the Labor Code or located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the United States Secretary of Labor.
(C) As of January 1, 2018, at least 40 percent of the skilled journeypersons employed to perform work on the contract or project by the entity and each of its subcontractors at every tier are graduates of an apprenticeship program for the applicable occupation that was either approved by the Chief of the Division of Apprenticeship Standards pursuant to Section 3075 of the Labor Code or located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the United States Secretary of Labor.
(D) As of January 1, 2019, at least 50 percent of the skilled journeypersons employed to perform work on the contract or project by the entity and each of its subcontractors at every tier are graduates of an apprenticeship program for the applicable occupation that was either approved by the Chief of the Division of Apprenticeship Standards pursuant to Section 3075 of the Labor Code or located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the United States Secretary of Labor.
(E) As of January 1, 2020, at least 60 percent of the skilled journeypersons employed to perform work on the contract or project by the entity and each of its subcontractors at every tier are graduates of an apprenticeship program for the applicable occupation that was either approved by the Chief of the Division of Apprenticeship Standards pursuant to Section 3075 of the Labor Code or located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the United States Secretary of Labor.
(3) For an apprenticeable occupation in which no apprenticeship program had been approved by the chief prior to January 1, 1995, up to one-half of the graduation percentage requirements of paragraph (2) may be satisfied by skilled journeypersons who commenced working in the apprenticeable occupation prior to the chief’s approval of an apprenticeship program for that occupation in the county in which the project is located.
(p) “Skilled journeyperson” means a worker who either:
(1) Graduated from an apprenticeship program for the applicable occupation that was approved by the chief or located outside California and approved for federal purposes pursuant to the apprenticeship regulations adopted by the federal Secretary of Labor.
(2) Has at least as many hours of on-the-job experience in the applicable occupation as would be required to graduate from an apprenticeship program for the applicable occupation that is approved by the chief.
20119.2.
(a) This article provides for a pilot program for the Los Angeles Unified School District to use best value procurement for projects over one million dollars ($1,000,000).
(b) The governing board, for projects over one million dollars ($1,000,000), before December 31, 2020, may use the best value procurement method in accordance with this article.
(c) The bidder may be selected on the basis of the best value to the governing board of the school district. In order to implement this method of selection, the governing board of the school district shall adopt and publish procedures and required guidelines for evaluating the qualifications of the bidders that ensure the best value selections by the school district are conducted in a fair and impartial manner. These procedures and guidelines shall conform to this article and shall be mandatory for the school district when using best value selection.
(d) If the governing board of the school district deems it to be for the best interest of the school district, the governing board of the school district, on the refusal or failure of the selected bidder for a project to execute a tendered contract, may award it to the bidder with the second lowest best value score. If the second bidder fails or refuses to execute the contract, the governing board of the school district may likewise award it to the bidder with the third lowest best value score.
(e) The governing board of the school district shall let any contract for a project pursuant to this article to the selected bidder that represents the best value or else reject all bids.
(f) (1) If the school district elects to award a project pursuant to this section, retention proceeds withheld by the district from the selected best value contractor shall not exceed 5 percent if a performance and payment bond, issued by an admitted surety insurer, is required in the solicitation of bids.
(2) In a contract between the selected best value contractor and a subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld shall not exceed the percentage specified in the contract between the district and the selected best value contractor. If the selected best value contractor provides written notice to a subcontractor that, prior to or at the time the bid is requested, a bond may be required and the subcontractor subsequently is unable or refuses to furnish a bond to the selected best value contractor, then the selected best value contractor may withhold retention proceeds in excess of the percentage specified in the contract between the district and the selected best value contractor from any payment made by the selected best value contractor to the subcontractor.
(g) All subcontractors bidding on contracts pursuant to this chapter shall be afforded the protection contained in Chapter 4 (commencing with Section 4100) of Part 1.
20119.3.
The governing board of the school district shall proceed in accordance with the following when awarding best value contracts under this article:
(a) The school district shall prepare a solicitation for bids and give notice pursuant to Section 20112.
(b) (1) The school district shall establish a procedure to prequalify bidders as required by this code. Information submitted by the bidder as part of the evaluation process shall not be open to public inspection to the extent that information is exempt from disclosure under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).
(2) A best value entity shall not be prequalified or shortlisted unless the entity provides an enforceable commitment to the governing board that the entity and its subcontractors at every tier will use a skilled and trained workforce to perform all work on the project or contract that falls within an apprenticeable occupation in the building and construction trades.
(3) An entity’s commitment that a skilled and trained workforce will be used to perform the project or contract may be established by any of the following:
(A) The entity’s agreement with the school district that the entity and its subcontractors at every tier will comply with the requirements of this subdivision and that the entity will provide the governing board of the school district with evidence, on a monthly basis while the project or contract is being performed, that the entity and its subcontractors are complying with the requirements of this subdivision.
(B) If the governing board has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project or contract and that includes the requirements of this subdivision, the entity’s agreement that it will become a party to that project labor agreement.
(C) Evidence that the entity has entered into a project labor agreement that includes the requirements of this subdivision and that will bind the entity and all its subcontractors at every tier performing the project or contract.
(c) Each solicitation for bids shall do all of the following:
(1) Invite prequalified bidders to submit sealed bids in the manner prescribed by this article.
(2) Include a section identifying and describing the following:
(A) Criteria that the school district will consider in evaluating the qualifications of the bidders.
(B) The methodology and rating or weighting system that will be used by the school district in evaluating bids.
(C) The relative importance or weight assigned to the criteria for evaluating the qualifications of bidders identified in the request for bids.
(d) Final evaluation of the bidders shall be done in a manner that prevents the identity of the bidders and the cost or price information from being revealed in evaluating the qualifications of the bidders prior to completion of qualification scoring.
20119.4.
Selection of the best value contractor shall be made as follows:
(a) (1) The school district shall evaluate the qualifications of the bidders based solely upon the criteria set forth in the solicitation documents, and shall assign a qualification score to each bid.
(2) Qualification scores shall be determined by using only the criteria and selection procedures specifically identified in the request for proposals. The following minimum factors, however, shall be weighted as deemed appropriate by the school district:
(A) Relevant experience.
(B) Safety record.
(C) Other factors identified in the request for proposal.
(b) To determine the best value contractor, the school district shall divide each bidder’s price by its qualifications score. A preference of up to 5 percent shall be applied to the price of a bid submitted by a small business, as defined by the school district, before dividing the bidder’s price by its qualification score. The lowest resulting cost per quality point will represent the best value bid. The award of the contract shall be made to the bidder whose bid is determined, by the school district in writing, to be the best value to the school district.
(c) The school district shall issue a written decision of its contract award or else reject all bids.
(d) Upon issuance of a contract award, the school district shall publicly announce its award identifying the project, the project price, the best value contractor to which the award is made, as well as the prices, qualification scores, and resulting costs per qualification point for all responsive bidders. The contract file shall include documentation sufficient to support the decision to award.
20119.5.
(a) (1) A school district that uses the best value procurement method pursuant to this article shall submit to the appropriate policy and fiscal committees of the Legislature an interim and final report on the use of the best value procurement method. The reports shall be prepared by an independent third party and the school district shall pay for the cost of the report. The reports shall be submitted to the appropriate policy and fiscal committees of the Legislature as follows:
(A) An interim report on or before July 1, 2018.
(B) A final report on or before January 1, 2020.
(2) A report shall include, but is not limited to, the following information:
(A) A description of the projects awarded using the best value procedures.
(B) The contract award amounts.
(C) The best value contractors awarded the projects.
(D) A description of any written protests concerning any aspect of the solicitation, bid, or award of the best value contracts, including the resolution of the protests.
(E) A description of the prequalification process.
(F) The criteria used to evaluate the bids, including the weighting of the criteria and an assessment of the effectiveness of the methodology.
(G) If a project awarded under this article has been completed, an assessment of the project performance, to include a summary of any delays or cost increases.
(b) The requirement for submitting a report imposed pursuant to subdivision (a) is inoperative on January 1, 2021, pursuant to Section 10231.5 of the Government Code.
20119.6.
Except as otherwise provided in this article, the best value procurement method is not intended to change any guideline, criterion, procedure, or requirement of the governing board of the school district to let a contract for a project to the lowest responsible bidder or else reject all bids.
20119.7.
This article shall remain in effect only until January 1, 2021, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2021, deletes or extends that date.
SEC. 2.
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 establish a pilot project for the Los Angeles Unified School District to determine the potential benefits and consequences of using best value procurement to facilitate infrastructure improvements and ease fiscal impacts.

Summary: The Local Agency Public Construction Act requires the governing board of any school district to let any contract for a public project, as defined, involving an expenditure of $15,000 or more, to the lowest responsible bidder that gives security as the board requires, or else reject all bids. This bill would establish a pilot program to authorize the Los Angeles Unified School District to use, before December 31, 2020, a best value procurement method for bid evaluation and selection for public projects that exceed $1,000,000. The bill would establish various requirements applicable to the use of the best value procurement method under this authorization. The bill would require the school district to submit an interim and final report to the appropriate policy and fiscal committees of the Legislature on the use of the best value procurement method pursuant to the bill, in accordance with a specified schedule. These provisions would be repealed on January 1, 2021. This bill would make legislative findings and declarations as to the necessity of a special statute for the Los Angeles Unified School District.

An act to add and repeal Article 3.3 (commencing with Section 20119) of Chapter 1 of Part 3 of Division 2 of the Public Contract Code, relating to best value procurement.


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

SECTION 1.
Section 17701.02 of the Corporations Code is amended to read:
17701.02.
In this title:
(a) “Acknowledged” means that an instrument is either of the following:
(1) Formally acknowledged as provided in Article 3 (commencing with Section 1180) of Chapter 4 of Title 4 of Part 4 of Division 2 of the Civil Code.
(2) Executed to include substantially the following wording preceding the signature:

“It is hereby declared that I am the person who executed this instrument which execution is my act and deed.”

Any certificate of acknowledgment taken without this state before a notary public or a judge or clerk of a court of record having an official seal need not be further authenticated.
(b) “Articles of organization” means the articles required by Section 17702.01. The term includes the articles of organization as amended or restated.
(c) “Contribution” means any benefit provided by a person to a limited liability company:
(1) In order to become a member upon formation of the limited liability company and in accordance with an agreement between or among the persons that have agreed to become the initial members of the limited liability company.
(2) In order to become a member after formation of the limited liability company and in accordance with an agreement between the person and the limited liability company.
(3) In the person’s capacity as a member and in accordance with the operating agreement or an agreement between the member and the limited liability company.
(d) “Debtor in bankruptcy” means a person that is the subject of either of the following:
(1) An order for relief under Title 11 of the United States Code or a successor statute of general application.
(2) A comparable order under federal, state, or foreign law governing bankruptcy or insolvency, an assignment for the benefit of creditors, or an order appointing a trustee, receiver, or liquidator of the person or of all or substantially all of the person’s property.
(e) “Designated office” means either of the following:
(1) The office that a limited liability company is required to designate and maintain under Section 17701.13.
(2) The principal office of a foreign limited liability company.
(f) “Distribution,” except as otherwise provided in subdivision (g) of Section 17704.05, means a transfer of money or other property from a limited liability company to another person on account of a transferable interest.
(g) “Domestic” means organized under the laws of this state when used in relation to any limited liability company, other business entity, or person other than a natural person.
(h) “Effective,” with respect to a record required or permitted to be delivered to the Secretary of State for filing under this title, means effective under subdivision (c) of Section 17702.05.
(i) (1) “Electronic transmission by the limited liability company” means a communication delivered by any of the following means:
(A) Facsimile telecommunication or electronic mail when directed to the facsimile number or electronic mail address, respectively, for that recipient on record with the limited liability company.
(B) Posting on an electronic message board or network that the limited liability company has designated for those communications, together with a separate notice to the recipient of the posting, which transmission shall be validly delivered upon the later of the posting or delivery of the separate notice thereof.
(C) Other means of electronic communication to which both of the following apply:
(i) The communication is delivered to a recipient who has provided an unrevoked consent to the use of those means of transmission.
(ii) The communication creates a record that is capable of retention, retrieval, and review, and that may thereafter be rendered into clearly legible tangible form. However, an electronic transmission by a limited liability company to an individual member is not authorized unless, in addition to satisfying the requirements of this section, the transmission satisfies the requirements applicable to consumer consent to electronic records as set forth in the federal Electronic Signatures in Global and National Commerce Act (15 U.S.C. Sec. 7001(c)(1)).
(2) “Electronic transmission to the limited liability company” means a communication delivered by any of the following means:
(A) Facsimile telecommunication or electronic mail when directed to the facsimile number or electronic mail address, respectively, that the limited liability company has provided from time to time to members or managers for sending communications to the limited liability company.
(B) Posting on an electronic message board or network that the limited liability company has designated for those communications, which transmission shall be validly delivered upon the posting.
(C) Other means of electronic communication to which both of the following apply:
(i) The limited liability company has placed in effect reasonable measures to verify that the sender is the member or manager, in person or by proxy, purporting to send the transmission.
(ii) The communication creates a record that is capable of retention, retrieval, and review, and that may thereafter be rendered into clearly legible tangible form.
(j) “Foreign limited liability company” means an unincorporated entity formed under the law of a jurisdiction other than this state and denominated by that law as a limited liability company.
(k) “Limited liability company,” except in the phrase “foreign limited liability company,” means an entity formed
under
pursuant to
this title or an entity that becomes subject to this title pursuant to Article 13 (commencing with Section 17713.01).
(l) “Majority of the managers” unless otherwise provided in the operating agreement, means more than 50 percent of the managers of the limited liability company.
(m) “Majority of the members” unless otherwise provided in the operating agreement, means more than 50 percent of the membership interests of members in current profits of the limited liability company.
(n) “Manager” means a person that under the operating agreement of a manager-managed limited liability company is responsible, alone or in concert with others, for performing the management functions stated in subdivision (c) of Section 17704.07.
(o) “Manager-managed limited liability company” means a limited liability company that qualifies under subdivision (a) of Section 17704.07.
(p) “Member” means a person that has become a member of a limited liability company under Section 17704.01 and has not dissociated under Section 17706.02.
(q) “Member-managed limited liability company” means a limited liability company that is not a manager-managed limited liability company.
(r) “Membership interest” means a member’s rights in the limited liability company, including the member’s transferable interest, any right to vote or participate in management, and any right to information concerning the business and affairs of the limited liability company provided by this title.
(s) “Operating agreement” means the agreement, whether or not referred to as an operating agreement and whether oral, in a record, implied, or in any combination thereof, of all the members of a limited liability company, including a sole member, concerning the matters described in subdivision (a) of Section 17701.10. The term “operating agreement” may include, without more, an agreement of all members to organize a limited liability company pursuant to this title. An operating agreement of a limited liability company having only one member shall not be unenforceable by reason of there being only one person who is a party to the operating agreement. The term includes the agreement as amended or restated.
(t) “Organization” means, whether domestic or foreign, a partnership whether general or limited, limited liability company, association, corporation, professional corporation, professional association, nonprofit corporation, business trust, or statutory business trust having a governing statute.
(u) “Organizer” means a person that acts under Section 17702.01 to form a limited liability company.
(v) “Person” means an individual, partnership, limited partnership, trust, estate, association, corporation, limited liability company, or other entity, whether domestic or foreign. Nothing in this subdivision shall be construed to confer any rights under the California Constitution or the United States Constitution.
(w) “Principal office” means the principal executive office of a limited liability company or foreign limited liability company, whether or not the office is located in this state.
(x) “Record” means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
(y) “State” means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.
(z) “Transfer” includes an assignment, conveyance, deed, bill of sale, lease, mortgage, security interest, encumbrance, gift, and transfer by operation of law.
(aa) “Transferable interest” means the right, as originally associated with a person’s capacity as a member, to receive distributions from a limited liability company in accordance with the operating agreement, whether or not the person remains a member or continues to own any part of the right.
(ab) “Transferee” means a person to which all or part of a transferable interest has been transferred, whether or not the transferor is a member.
(ac) “Vote” includes authorization by written consent or consent given by electronic transmission to the limited liability company.

Summary: The California Revised Uniform Limited Liability Company Act governs the formation and operation of limited liability companies. The act defines various terms for the purposes of its provisions. This bill would make a nonsubstantive change to these definitions.

An act to amend Section 17701.02 of the Corporations Code, relating to limited liability companies.


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

SECTION 1.
Chapter 22.4 (commencing with Section 22595) is added to Division 8 of the Business and Professions Code, to read:
CHAPTER  22.4. Fair Information Practices Act
22595.
This chapter shall be known and may be cited as the Fair Information Practices Act.
22595.1.
(a) The principles of the Fair Information Practices Act include all of the following:
(1) Transparency.
(2) Individual participation.
(3) Purpose specification.
(4) Data minimization.
(5) Use limitation.
(6) Data quality and integrity.
(7) Security.
(8) Accountability and auditing.
(b) The Legislature finds and declares that with regard to the principles listed in subdivision (a), developers and operators of mobile operating systems or platforms are encouraged to do all of the following:
(1) Be transparent and notify individuals regarding collection, use, dissemination, and maintenance of personal data.
(2) Involve individuals in the process of using personal data and, to the extent practicable, seek individual consent for the collection, use, dissemination, and maintenance of personal data.
(3) Specifically articulate the authority that permits the collection of personal data and the purpose or purposes for which the personal data is intended to be used by defining the functional purpose of the mobile application and how an individual’s personal data is used to contribute to that functional purpose.
(4) Only collect personal data that is directly relevant and necessary to accomplish the purpose or purposes for which the personal data is intended to be used, and only retain personal data for as long as necessary to fulfill the specified purpose or purposes.
(5) Use personal data solely for the purpose or purposes specified in the notice to the user. Sharing personal data should be for a purpose compatible with the purpose or purposes for which the personal data was collected.
(6) Ensure, to the extent practicable, that personal data is accurate, relevant, timely, and complete.
(7) Protect personal data in all media through appropriate safeguards against risks, including, but not limited to, loss, unauthorized access or use, destruction, modification, or unintended or inappropriate disclosure.
(8) Be accountable for complying with the principles listed in subdivision (a), provide training to all employees and contractors who use personal data, and audit the actual use of personal data to demonstrate compliance with the principles listed in subdivision (a) and all applicable privacy protection requirements and laws.
22595.2.
For purposes of this chapter the term “person” means any individual, partnership, corporation, limited liability company, association, or other organization.
22595.3.
(a) This section shall apply to a person that provides a mobile operating system or platform that is used by an operator or developer of a mobile application or online service that collects personal data from an individual California user through the mobile application or online service.
(b) A person shall create universal privacy policy standards for all mobile applications based on the principles listed in subdivision (a) of Section 22595.1, and shall conspicuously post the universal privacy policy standards to the person’s Internet Web site in a digital format that is accessible to all users.
(c) (1) Except as otherwise provided in paragraph (2), a developer or operator of a mobile application using a mobile operating system or platform of a person shall accept the universal privacy policy standards of that person, and shall conspicuously post a notice of acceptance of those universal privacy policy standards on its Internet Web site in a digital format that is accessible to all users.
(2) A developer or operator of a mobile application or online service may elect not to accept the universal privacy policy standards of a person regarding the use of a user’s personal data, if that developer or operator obtains explicit agreement from that user.
SECTION 1.
The Legislature finds and declares all of the following:
(a)Low carbon transportation fuels are an important element of the state’s greenhouse gas reduction policy and increasing the supply of those fuels will help the state achieve its greenhouse gas reduction goals.
(b)Existing incentives for the development of low carbon transportation fuels, including the Low Carbon Fuel Standard regulation (Subarticle 7 (commencing with Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations), the California Global Warming Solutions Act of 2006 (Division 25.5 (commencing with Section 38500) of the Health and Safety Code), and Assembly Bill 118 (Chapter 750 of the Statutes of 2007), have not resulted in sufficient development of low carbon transportation fuels.
SEC. 2.
Section 38568 is added to the
Health and Safety Code
, to read:
38568.
(a)For purposes of this section, the following terms have the following meanings:
(1)“Indirect land use change emission” means the carbon emissions associated with changes in agricultural activity that result from the market-mediated effects of using an agricultural commodity that is a food product as feedstock for the production of the transportation fuel.
(2)“Very low carbon transportation fuel” means a liquid or gaseous transportation fuel having no greater than 50 percent of the carbon intensity of the closest comparable petroleum fuel for that year, as measured by the methodology in the Low Carbon Fuel Standard regulation (Subarticle 7 (commencing with Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations). The carbon intensity for the transportation fuel shall include the indirect land use change emission if an agricultural commodity that is a food product is used as a feedstock for the production of the transportation fuel.
(b)The state board may establish a very low carbon fuel market commitment program that requires a wholesaler, producer, importer, or any other entity that provides transportation fuel to a retailer or sells transportation fuel to a consumer to include as part of its transportation fuel sales in the state percentages of very low carbon transportation fuel. The percentages of very low carbon transportation fuel shall be determined by the state board and measured in energy equivalent units. The state board may require percentages of very low carbon transportation fuel as low as one-quarter of 1 percent or as high as 2 percent.
(c)When the state board determines that very low carbon transportation fuel sales have reached 2 percent of all transportation fuel sales in the state, the state board shall notify the Secretary of State and this section shall be inoperative five years from that notification.
(d)This section does not replace or modify any existing fuel standards or requirements imposed under the Low Carbon Fuel Standard regulation (Subarticle 7 (commencing with Section 95480) of Article 4 of Subchapter 10 of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations).

Summary: Existing law requires an operator of a commercial Web site or online service that collects personally identifiable information, as defined, through the Internet about individual consumers residing in California to conspicuously post its privacy policy on its Internet Web site, and requires that privacy policy to, among other things, identify the categories of personally identifiable information that the operator collects. This bill would require a person, as defined, that provides a mobile operating system or platform that is used by an operator or developer of a mobile application that collects personal data from an individual California user through the mobile application or an online service to create universal privacy policy standards that are based on certain principles, including, but not limited to, transparency and security. The bill would require that person to conspicuously post those standards on the person’s Internet Web site in a digital format that is accessible to all users, and would require a developer or operator of a mobile application using a mobile operating system or platform to accept those universal privacy policy standards, except as specified. The bill would also make legislative findings and declarations regarding those principles. The California Global Warming Solutions Act of 2006 establishes the State Air Resources Board as the state agency responsible for monitoring and regulating sources emitting greenhouse gases. The act requires the state board to adopt a statewide greenhouse gas emissions limit to be achieved by 2020 equivalent to the statewide greenhouse gas emissions levels of 1990. The state board additionally is required to adopt rules and regulations in an open public process to achieve the maximum technologically feasible and cost-effective greenhouse gas emissions reductions. Pursuant to the act, the state board has adopted the Low Carbon Fuel Standard regulations. This bill would authorize the state board to establish a very low carbon fuel market commitment program that requires wholesalers, producers, importers, or any other entity that provides transportation fuel to a retailer or sells transportation fuel to a consumer to include as part of their transportation fuel sales in the state percentages of very low carbon transportation fuel, as defined, as determined by the state board. These provisions would become inoperative 5 years after the state board notifies the Secretary of State that very low carbon fuel sales have reached 2 of all transportation fuel sales in the state.

An act to add Section 38568 to the Health and Safety Code, relating to greenhouse gases.
An act to add Chapter 22.4 (commencing with Section 22595) to Division 8 of the Business and Professions Code, relating to data.


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

SECTION 1.
Section 5150 of the Welfare and Institutions Code is amended to read:
5150.
(a) When a person, as a result of a mental health disorder, is a danger to others, or to himself or herself, or gravely disabled, a peace officer, professional person in charge of a facility designated by the county for evaluation and treatment, member of the attending staff, as defined by regulation, of a facility designated by the county for evaluation and treatment, designated members of a mobile crisis team, or professional person designated by the county may, upon probable cause, take, or cause to be taken, the person into custody for a period of up to 72 hours for assessment, evaluation, and crisis intervention, or placement for evaluation and treatment in a facility designated by the county for evaluation and treatment and approved by the State Department of Health Care Services. At a minimum, assessment, as defined in Section 5150.4, and evaluation, as defined in subdivision (a) of Section 5008, shall be conducted and provided on an ongoing basis. Crisis intervention, as defined in subdivision (e) of Section 5008, may be provided concurrently with assessment, evaluation, or any other service.
(b) When determining if a person should be taken into custody pursuant to subdivision (a), the individual making that determination shall apply the provisions of Section 5150.05, and shall not be limited to consideration of the danger of imminent harm.
(c) The professional person in charge of a facility designated by the county for evaluation and treatment, member of the attending staff, or professional person designated by the county shall assess the person to determine whether he or she can be properly served without being detained. If, in the judgment of the professional person in charge of the facility designated by the county for evaluation and treatment, member of the attending staff, or professional person designated by the county, the person can be properly served without being detained, he or she shall be provided evaluation, crisis intervention, or other inpatient or outpatient services on a voluntary basis. Nothing in this subdivision shall be interpreted to prevent a peace officer from delivering individuals to a designated facility for assessment under this section. Furthermore, the assessment requirement of this subdivision shall not be interpreted to require peace officers to perform any additional duties other than those specified in Sections 5150.1 and 5150.2.
(d) Whenever a person is evaluated by a professional person in charge of a facility designated by the county for evaluation or treatment, member of the attending staff, or professional person designated by the county and is found to be in need of mental health services, but is not admitted to the facility, all available alternative services provided pursuant to subdivision (c) shall be offered as determined by the county mental health director.
(e) If, in the judgment of the professional person in charge of the facility designated by the county for evaluation and treatment, member of the attending staff, or the professional person designated by the county, the person cannot be properly served without being detained, the admitting facility shall require an application in writing stating the circumstances under which the person’s condition was called to the attention of the peace officer, professional person in charge of the facility designated by the county for evaluation and treatment, member of the attending staff, or professional person designated by the county, and stating that the peace officer, professional person in charge of the facility designated by the county for evaluation and treatment, member of the attending staff, or professional person designated by the county has probable cause to believe that the person is, as a result of a mental health disorder, a danger to others, or to himself or herself, or gravely disabled. The application shall also record whether the historical course of the person’s mental disorder was considered in the determination, pursuant to Section 5150.05. If the probable cause is based on the statement of a person other than the peace officer, professional person in charge of the facility designated by the county for evaluation and treatment, member of the attending staff, or professional person designated by the county, the person shall be liable in a civil action for intentionally giving a statement that he or she knows to be false.
(f) At the time a person is taken into custody for evaluation, or within a reasonable time thereafter, unless a responsible relative or the guardian or conservator of the person is in possession of the person’s personal property, the person taking him or her into custody shall take reasonable precautions to preserve and safeguard the personal property in the possession of or on the premises occupied by the person. The person taking him or her into custody shall then furnish to the court a report generally describing the person’s property so preserved and safeguarded and its disposition, in substantially the form set forth in Section 5211, except that if a responsible relative or the guardian or conservator of the person is in possession of the person’s property, the report shall include only the name of the relative or guardian or conservator and the location of the property, whereupon responsibility of the person taking him or her into custody for that property shall terminate. As used in this section, “responsible relative” includes the spouse, parent, adult child, domestic partner, grandparent, grandchild, or adult brother or sister of the person.
(g) (1) Each person, at the time he or she is first taken into custody under this section, shall be provided, by the person who takes him or her into custody, the following information orally in a language or modality accessible to the person. If the person cannot understand an oral advisement, the information shall be provided in writing. The information shall be in substantially the following form:
My name is  .
I am a  _____ (peace officer/mental health professional) _____ .
with  _____ (name of agency) _____ .
You are not under criminal arrest, but I am taking you for an examination by mental health professionals at .
_____ (name of facility) _____
You will be told your rights by the mental health staff.
(2) If taken into custody at his or her own residence, the person shall also be provided the following information:

You may bring a few personal items with you, which I will have to approve. Please inform me if you need assistance turning off any appliance or water. You may make a phone call and leave a note to tell your friends or family where you have been taken.

(h) The designated facility shall keep, for each patient evaluated, a record of the advisement given pursuant to subdivision (g) which shall include all of the following:
(1) The name of the person detained for evaluation.
(2) The name and position of the peace officer or mental health professional taking the person into custody.
(3) The date the advisement was completed.
(4) Whether the advisement was completed.
(5) The language or modality used to give the advisement.
(6) If the advisement was not completed, a statement of good cause, as defined by regulations of the State Department of Health Care Services.
(i) (1) Each person admitted to a facility designated by the county for evaluation and treatment shall be given the following information by admission staff of the facility. The information shall be given orally and in writing and in a language or modality accessible to the person. The written information shall be available to the person in English and in the language that is the person’s primary means of communication. Accommodations for other disabilities that may affect communication shall also be provided. The information shall be in substantially the following form:
My name is  .
My position here is  .
You are being placed into this psychiatric facility because it is our professional opinion that, as a result of a mental health disorder, you are likely to (check applicable):
◻ Harm yourself.
◻ Harm someone else.
◻ Be unable to take care of your own food, clothing, and housing needs.
We believe this is true because
(list of the facts upon which the allegation of dangerous
or gravely disabled due to mental health disorder is based, including pertinent
facts arising from the admission interview).
You will be held for a period up to 72 hours. During the 72 hours you may also be transferred to another facility. You may request to be evaluated or treated at a facility of your choice. You may request to be evaluated or treated by a mental health professional of your choice. We cannot guarantee the facility or mental health professional you choose will be available, but we will honor your choice if we can.
During these 72 hours you will be evaluated by the facility staff, and you may be given treatment, including medications. It is possible for you to be released before the end of the 72 hours. But if the staff decides that you need continued treatment you can be held for a longer period of time. If you are held longer than 72 hours, you have the right to a lawyer and a qualified interpreter and a hearing before a judge. If you are unable to pay for the lawyer, then one will be provided to you free of charge.
If you have questions about your legal rights, you may contact the county Patients’ Rights Advocate at _____ (phone number for the county Patients’ Rights Advocacy office) _____ .
Your 72-hour period began _____ (date/time) _____ .
(2) If the notice is given in a county where weekends and holidays are excluded from the 72-hour period, the patient shall be informed of this fact.
(j) For each patient admitted for evaluation and treatment, the facility shall keep with the patient’s medical record a record of the advisement given pursuant to subdivision (i), which shall include all of the following:
(1) The name of the person performing the advisement.
(2) The date of the advisement.
(3) Whether the advisement was completed.
(4) The language or modality used to communicate the advisement.
(5) If the advisement was not completed, a statement of good cause.
SEC. 2.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

Summary: Existing law, the Lanterman-Petris-Short Act, provides for the involuntary commitment and treatment of persons with specified mental disorders for the protection of the persons so committed. Under the act, when a person, as a result of mental health disorder, is a danger to others, or to himself or herself, or gravely disabled, he or she may, upon probable cause, be taken into custody by a peace officer, member of the attending staff of an evaluation facility, designated members of a mobile crisis team, or other designated professional person, and placed in a facility designated by the county and approved by the State Department of Social Services as a facility for 72-hour treatment and evaluation. Existing law requires, when determining if probable cause exists to take a person into custody, or cause a person to be taken into custody pursuant to the provisions described above, any person who is authorized to take or cause that person to be taken into custody to consider available relevant information about the historical course of the person’s mental disorder, as specified, if the authorized person determines that information has a reasonable bearing on the determination described above. This bill would provide that, when determining if a person should be taken into custody pursuant to the provisions described above, the individual making that determination shall consider available relevant information about the historical course of the person’s mental disorder if the individual concludes that the information has a reasonable bearing on the determination, and that the individual shall not be limited to consideration of the danger of imminent harm. Existing law requires the admitting facility to require an application in writing stating the circumstances under which the person’s condition was called to the attention of those persons authorized to make the determination of probable cause, and stating that he or she has probable cause, as specified. The bill would also require the application to record whether the historical course of a person’s mental disorder was considered in the determination of probable cause. By imposing additional duties on local officials, the 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

An act to amend Section 5150 of the Welfare and Institutions Code, relating to mental health.


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

SECTION 1.
Section 8869.80 of the Government Code is amended to read:
8869.80.
The Legislature hereby finds and declares all of the following:
(a) The Tax Reform Act of 1986 (Public Law 99-514) establishes a volume ceiling on the aggregate amount of private activity bonds that can be issued in each state. The volume ceiling is the product of seventy-five dollars ($75) multiplied by the state population in 1987 and fifty dollars ($50) multiplied by the state population in each succeeding calendar year.
(b) Sections 1112 and 1401 of the American Recovery and Reinvestment Act of 2009 (26 U.S.C. Secs. 54a and 1400U-1) establish an aggregate amount of bond authority that can be issued in each state. Said amount may be determined from time to time by federal law, federal notice, or both federal law and notice.
(c) Section 142(k) of the Internal Revenue Code establishes a volume ceiling on the aggregate amount of qualified education facility bonds that can be issued in each state. The qualified educational facilities volume ceiling is the product of ten dollars ($10) multiplied by the state population in each calendar year.
(d) The federal act requires each state to allocate its volume ceiling according to a specified formula unless a different procedure is established by Governor’s proclamation or state legislation.
(e) Section 142(k)(5)(B)(i) of the Internal Revenue Code authorizes each state to allocate the qualified educational facilities volume ceiling in the manner the state determines appropriate.
(f) Therefore, it is necessary to designate a state agency and create an allocation system to administer the state volume ceiling.
(g) A substantial public benefit is served by promoting housing for lower income families and individuals.
(h) A substantial public benefit is served by preserving and rehabilitating existing governmental assisted housing for lower income families and individuals.
(i) A substantial public benefit is served by providing federal tax credits or reduced interest rate mortgages to assist teachers, principals, vice principals, assistant principals, and classified employees who are willing to serve in high priority schools to purchase a home.
(j) A substantial public benefit is served by constructing educational facilities for the state’s children.
SEC. 2.
Section 8869.81 of the Government Code is amended to read:
8869.81.
This chapter is enacted to implement the state volume limit established in Section 1301 of the Federal Tax Reform Act of 1986 (Public Law 99-514), Sections 1112 and 1401 of the American Recovery and Reinvestment Act of 2009 (26 U.S.C. Secs. 54a and 1400U-1), and Sections 142(k) and 146 of the Internal Revenue Code.
SEC. 3.
Section 8869.82 of the Government Code is amended to read:
8869.82.
(a) As used in this chapter, unless the context otherwise requires, the terms defined in this section shall have the following meanings:
(1) “Committee” means the California Debt Limit Allocation Committee established pursuant to Section 8869.83.
(2) “Fund” means the California Debt Limit Allocation Committee Fund created pursuant to Section 8869.90.
(3) “Internal Revenue Code” means the Internal Revenue Code of 1986 (26 U.S.C. Sec. 1 et seq.), as amended from time to time.
(4) “Issuer” means any local agency or state agency authorized by the Constitution or laws of the state to issue private activity bonds.
(5) “Local agency” means any political subdivision of the state within the meaning of Section 103 of the Internal Revenue Code (26 U.S.C. Sec. 103), or any entity that has the power to issue private activity bonds on behalf of that political subdivision.
(6) “MBTCAC” means the California Tax Credit Allocation Committee created by Section 50199.8 of the Health and Safety Code.
(7) “Private activity bond” means a part or all of any bond, or other instrument, required to obtain a portion of the state’s volume cap pursuant to Sections 142(k) and 146 of the Internal Revenue Code (26 U.S.C. Secs. 142(k) and 146) in order to be tax-exempt, including, generally, all of the following, as those bonds are defined in the Internal Revenue Code:
(A) Exempt facility bonds, except bonds for airports, docks and wharves, and certain solid waste facilities.
(B) Qualified mortgage bonds.
(C) Qualified small issue bonds.
(D) Qualified student loan bonds.
(E) Qualified redevelopment bonds.
(F) The nonqualified amount of an issue of governmental bonds (including advance refunds) exceeding fifteen million dollars ($15,000,000), as provided in Section 141(b)(5) of the Internal Revenue Code (26 U.S.C. Sec. 141(b)(5)).
(8) “Private activity bond limit” means any portion of the state ceiling allocated or transferred to a state agency or local agency pursuant to this chapter.
(9) “State” means the State of California.
(10) “State agency” means the state and all state entities, including joint powers authorities of which the state or agency or instrumentality thereof is a member, empowered to issue private activity bonds, the interest on which is exempt from income tax under Section 103(a) of the Internal Revenue Code (26 U.S.C. Sec. 103(a)), including nonprofit corporations described in Section 150(d) of the Internal Revenue Code (26 U.S.C. Sec. 150(d)), authorized to issue qualified scholarship funding bonds.
(11) “State ceiling” includes all of the following:
(A) The amount specified by Section 146(d) of the Internal Revenue Code (26 U.S.C. Sec. 146(d)) for each calendar year commencing in 1986.
(B) The amount reserved to the state pursuant to Sections 1112 and 1401 of the American Recovery and Reinvestment Act of 2009 (26 U.S.C. Secs. 54a and 1400U-1).
(C) The amount specified by Section 142(k) of the Internal Revenue Code (26 U.S.C. Sec. 42(k)).
(b) Pursuant to Section 146(e) of the Internal Revenue Code (26 U.S.C. Sec. 146(e)), this chapter governs the allocation of the state ceiling among the state agencies and local agencies in this state having authority to issue private activity bonds.
(c) Any portion of the state ceiling allocated or transferred by or under the authority of this chapter shall become the private activity bond limit for the issuer of which that portion is allocated or transferred for any private activity bonds issued by that issuer.
SEC. 4.
Section 8869.85 of the Government Code is amended to read:
8869.85.
(a) Each state agency shall apply to the committee for allocation of a portion of the state ceiling, supplying any information which the committee may require. The application may be for a specific project, or it may be for a designated dollar amount, to be utilized for projects or programs at the discretion of the state agency. No private activity bonds issued by any state agency shall be deemed to receive the benefit of any portion of the state ceiling unless the committee has allocated or permitted the transfer of a portion of the state ceiling to the state agency. The allocation may be on any terms and conditions as the committee may determine.
(b) Any local agency may apply to the committee for an allocation of a portion of the state ceiling, supplying any information which the committee may require. Applications from local agencies may only be for specific projects or programs. No private activity bond issued by a local agency shall be deemed to receive the benefit of any portion of the state ceiling unless the committee has allocated or permitted the transfer of a portion of the state ceiling to the local agency. The allocation may be upon any terms and conditions as the committee may determine.
(c) Any allocation made pursuant to this section shall be irrevocable upon issuance of bonds pursuant thereto at least to the extent of the amount of the bonds so issued. No allocation shall permit the state agency or local agency which receives it to use all or any portion of the allocation for a carryforward pursuant to Section 146(f) or Section 142(k)(5)(B)(ii) of the Internal Revenue Code, unless the committee expressly allows use of the allocation for a carryforward.
(d) No allocation made to a state agency or a local agency pursuant to this section may be transferred by the initial recipient thereof to any other state agency or local agency unless the committee expressly permits the transfer. With the committee’s permission, any state or local agency may, by resolution, transfer to any other local agency or to any state agency or back to the committee all or any portion of the agency’s private activity bond limit. Any such transfer shall be made in writing and may be general or limited and subject to any terms and conditions as may be set forth in the resolution or under the committee’s permission, as long as the transfer is irrevocable upon issuance of bonds pursuant to the transfer, at least to the extent of the amount of the bonds so issued. Each transferee shall maintain a written record of the transfer in its records for at least the term of all private activity bonds issued pursuant to the transfer. No transfer may be made pursuant to this section in return for any payment of cash, property, or other marketable thing of value.
SEC. 5.
Section 8869.86 of the Government Code is amended to read:
8869.86.
(a) Subject to any limitations on transferred private activity bond limit as may be provided in subdivision (d) of Section 8869.85, any state agency or local agency may utilize its private activity bond limit for any of the following:
(1) The issuance of private activity bonds.
(2) If permitted by the committee, to make a carryforward election pursuant to Section 142(k) or Section 146(f) of the Internal Revenue Code.
(3) If permitted by the committee, to make a transfer to any state agency, local agency, or the committee.
(b) Prior to issuing any private activity bonds, the issuer shall, in the bond resolution or other similar action giving approval for the issuance of bonds, specifically designate to the bond issue a portion of the private activity bond limit available or expected to be available to that issuer. The designation shall be irrevocable upon the issuance of the bonds to the extent of the amount thereof.
(c) Each state agency and local agency shall notify the committee in writing, as directed by the committee, after any of the following:
(1) The issuance of any private activity bonds.
(2) Any action taken pursuant to subdivision (d) of Section 8869.85 to transfer any portion of its private activity bond limit.
(3) Any election to treat all or any portion of the state agency’s or local agency’s private activity bond limit as a carryforward pursuant to Section 142(k) or Section 146(f) of the Internal Revenue Code. The committee shall keep the notices in its records for a period no less than the term of all private activity bonds issued as described in the notices.
SEC. 6.
Section 8869.93 of the Government Code is amended to read:
8869.93.
The Treasurer, or his or her designee, is designated as the state official to certify that an issue of private activity bonds meets the requirements of Section 142(k) or Section 146 of the Internal Revenue Code of 1986, as amended, and to take any and all actions as may be necessary or appropriate in connection therewith.

Summary: Existing law establishes the California Debt Limit Allocation Committee for the purpose of implementing the volume limit for the state on private activity bonds established pursuant to federal law. The committee’s duties include annually determining a state ceiling on the aggregate amount of private activity bonds that may be issued, and allocating that amount among state and local agencies. Existing law defines the terms “private activity bond” and “state ceiling” for those purposes with regard to an amount specified in federal law. This bill would revise the findings and declarations with regard to, and the purpose for, the provisions relating to the California Debt Limit Allocation Committee to reflect the American Recovery and Reinvestment Act of 2009. The bill would revise the definition of “private activity bond” and “state ceiling” to also include certain amounts reserved to the state for qualified educational facilities bonds and would make conforming changes with regard to those bonds.

An act to amend Sections 8869.80, 8869.81, 8869.82, 8869.85, 8869.86, and 8869.93 of the Government Code, relating to bonds.


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

SECTION 1.
Section 14999 of the Government Code is amended to read:
14999.
The Commission for Economic Development, hereinafter referred to as the commission, is continued in existence. The purpose of the commission is to provide continuing bipartisan legislative, executive branch, and private sector support and guidance on public policies and economic development activities that support job creation and business growth in this state. Among other activities, the commission may undertake any and all of the following:
(a) Assessing specific regional or local economic development problems and making recommendations for solving problems.
(b) Providing a forum for ongoing dialogue on economic issues between state government and the private sector.
(c) Recommending, where deemed appropriate, legislation to require evaluation of demonstration and ongoing economic development projects and programs to ensure continued cost effectiveness.
(d) Identifying and reporting important secondary effects on economic development of programs and regulations which may have other primary purposes.
(e) Undertaking specialized studies and preparing specialized reports at the request of the Governor or Legislature.
(f) Collaborating with statewide and regional organizations on economic and community development initiatives.
(g) Identifying and supporting this state’s access to federal programs, services, and initiatives that would benefit this state’s economy, businesses, and workers.
SEC. 2.
Section 14999.1 of the Government Code is amended to read:
14999.1.
(a) The commission shall consist of the Lieutenant Governor and 16 members appointed as follows:
(1) Three Members of the Senate, appointed by the Senate Rules Committee.
(2) Three Members of the Assembly, appointed by the Speaker of the Assembly.
The Members of the Legislature appointed to the commission shall serve at the pleasure of the appointing power and shall participate in the activities of the commission to the extent that such participation is not incompatible with their respective positions as Members of the Legislature. For the purposes of this chapter, such Members of the Legislature shall constitute a joint investigating committee on the subject of this chapter and as such shall have the powers and duties imposed upon such committees by the Joint Rules of the Senate and Assembly.
(3) Ten members appointed by the Governor after consultation with business, industry, and labor organizations, with no more than six members registered from the same political party. These 10 members shall include persons from the economic development fields of manufacturing,
tourism, world trade
small business, finance,
and such other fields as may be appropriate. The terms of these 10 members shall be for four years. The terms of the members first appointed shall be as follows: four shall expire January 1, 1973; four January 1, 1974; and two January 1, 1975.
(b) The commission may additionally consist of up to three Members of the California United States Congressional Delegation, who have applied to, and have been appointed
by
by,
the Governor. The Members of the United States Congress appointed to the commission shall serve at the pleasure of the appointing power and shall participate in the activities of the commission to the extent that such participation is not incompatible with their respective positions as Members of the United States Congress.
(c) The Lieutenant Governor shall serve as
chairman
chairperson
of the commission. The commission shall provide for the selection of a vice
chairman
chairperson
who shall be a registered member of a political party different from that of the
chairman.
chairperson.
The commission may select from its membership such other officers as it deems necessary. The
chairman
chairperson
and the vice
chairman
chairperson
shall be ad hoc members of all committees.
(d) The Governor shall appoint, upon the nomination of the Lieutenant Governor, an executive secretary for the commission. The executive secretary shall serve at the pleasure of the Lieutenant Governor. The Lieutenant Governor shall appoint the staff of the commission. The staff shall be employees of the Lieutenant Governor’s office.
SEC. 3.
Section 14999.2 of the Government Code is amended to read:
14999.2.
The commission may appoint task forces to study and report on specific issues relating to the purposes of this chapter. The commission may contract for studies and other special services for purposes of this chapter. All studies and reports of the commission are public documents and shall be posted on the Internet Web site of the Lieutenant Governor for not less than 24 months.
SEC. 4.
Section 14999.3 of the Government Code is amended to read:
14999.3.
The commission
shall
may
appoint advisory committees from outside its membership to represent the aerospace, manufacturing, logistics, tourism, and world trade segments of the state’s economy, and such other advisory committees as it deems necessary for the purpose of carrying out its responsibilities as set forth in this chapter. No reimbursement for travel within the state or per diem is authorized for participation on an advisory committee or for testifying before an advisory committee.
SEC. 5.
Section 14999.4 of the Government Code is amended to read:
14999.4.
(a) Except as provided in subdivision (b), members of the commission, including members appointed pursuant to subdivision (b) of Section 14999.1, shall serve without compensation, but shall be reimbursed for actual necessary expenses for travel within the state incurred in the performance of their duties, as authorized by the commission chairperson.
(b) Members representing the Senate and Assembly shall receive reimbursement from their legislative funds.
SEC. 6.
Section 14999.5 of the Government Code is amended to read:
14999.5.
All meetings of the commission shall be open and public and all persons shall be permitted to attend any meetings of the commission.
SEC. 7.
Section 14999.6 of the Government Code is amended to read:
14999.6.
(a) The commission may act at any regular or special meeting, by teleconference, via an Internet Web site, or other electronic means, or a combination thereof. Regular meetings shall be held once during each
three-month
four-month
period and special meetings may be called by the
chairman
chairperson
at any time he or she deems it is necessary to handle special or emergency matters.
(b) A majority of the members described in subdivision (a) of Section 14999.1 shall constitute a quorum for the transaction of business for the commission. The transaction of business does not include taking testimony or discussing issues that will be acted on at a future
meeting or pursuant to subparagraph (2) of subdivision (c).
meeting.
(c) The commission may also act without a meeting if a majority of the members approve of the action taken in writing.
(d) Any member described in subdivision (a) of Section 14999.1 who misses attending three consecutive meetings without good
cause,
cause
may be replaced.
SEC. 8.
Section 14999.7 of the Government Code is amended to read:
14999.7.
The commission shall have the powers and authority necessary to carry out the duties imposed upon it by this chapter,
including
including,
but not limited to, all of the following:
(a) To adopt rules and regulations as it deems advisable with respect to the conduct of its own affairs.
(b) To hold hearings, make and sign agreements, and to do or perform any acts which may be necessary, desirable, or proper to carry out the purposes of this chapter.
(c) To cooperate with, and secure the cooperation of, any department, division, bureau, commission, or other agency of the state, other federal, foreign, or local government, public entity, private organization, or corporation to facilitate it to properly carry out its powers and duties pursuant to this chapter.
(d) To accept any federal funds granted, by act of the United States Congress or by executive order, for all or any of the purposes of this chapter.
(e) To accept any gifts, donations, grants, or bequests for all or any of the purposes of this chapter.
SEC. 9.
Section 14999.8 of the Government Code is amended to read:
14999.8.
(a) The commission shall consider programs, services, technologies, and actions to further the economic development of the state.
(b) The commission
shall
may
study the laws and programs of other states relating to economic development, job creation, entrepreneurship,
economic mobility,
competitiveness, and
the encouragement of civic leaders and business and industry.
other economic development-related topics.
The commission may confer with governmental officials, civic leaders, business and industry, and any other persons or organizations
interested in the promotion of economic development, job creation, entrepreneurship, and competitiveness.
deemed necessary by the chairperson to carry out the purposes of this chapter.
(c) The commission
shall
may
make recommendations concerning legislation affecting the economic development of the state.
SEC. 10.
Section 14999.9 of the Government Code is amended to read:
14999.9.
(a) The commission shall make a report of its activities, findings, and recommendations to the Governor and the Legislature not later than February 1 of each year.
(b) A report to the Legislature pursuant to this section shall be submitted in compliance with Section 9795.
SEC. 11.
Section 14999.10 of the Government Code is amended to read:
14999.10.
(a) The Legislature finds and declares that the Commission for Economic Development is solely an advisory body to the Legislature, to the Governor, and to state departments, offices, and agencies, and that the duties and functions given the commission are part of, or incidental to, its work as an advisory body.
(b) The Legislature further finds and declares that no person shall, by virtue of his or her membership on the commission, be deemed or held to be an officer of the State of California.

Summary: Existing law establishes the Commission on for Economic Development, as solely an advisory body, and provides that the purpose of the commission is to provide continuing bipartisan legislative branch, executive branch, and private sector support and guidance for the best overall economic development of the state by any specified means. Under existing law, the membership of the committee consists of the Lieutenant Governor and 16 other members, including 6 Members of the Legislature appointed by the Senate Committee on Rules and the Speaker of the Assembly and 10 members representing business, industry, and labor organizations appointed by the Governor. Existing law authorizes the commission to appoint task forces to study and report on specific issues relating to these purposes. Existing law authorizes the commission to act at any regular or special meeting. meeting and requires regular meetings to be held once during each 3-month period. Existing law requires the commission to appoint advisory committees from outside its membership to represent, among other industries, aerospace and to study laws and programs of other states relating to economic development and the encouragement of business and industry. This bill would provide that the purpose of the commission is to provide that continuing support and guidance on public policies and economic development activities that support job creation and business growth in this state. The bill would additionally authorize the commission to collaborate with statewide and regional organizations on economic and community development initiatives and identify and support this state’s access to federal programs, as provided. The bill would authorize the addition of up to 3 Members of the California Congressional Delegation to the commission and would require these members to apply and be appointed by the Governor. The bill would declare all studies and reports of the commission to be public documents and would require them to be posted on the Internet Web site of the Lieutenant Governor for not less than 24 months. The bill would additionally authorize the commission to act by teleconference, via an Internet Web site, or other electronic means, or a combination of a meeting and electronic means. means and would instead require regular meetings to occur once during each 4-month period. The bill would authorize, rather than require, the commission to appoint advisory committees from outside its membership and to study laws and programs of other states relating to economic development, including, among others, economic mobility. The bill would also make numerous technical and conforming changes.

An act to amend Sections 14999, 14999.1, 14999.2, 14999.3, 14999.4, 14999.5, 14999.6, 14999.7, 14999.8, 14999.9, and 14999.10 of the Government Code, relating to economic development.


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

SECTION 1.
The Legislature finds and declares all of the following:
(a) One of the biggest challenges currently faced by charter schools is finding suitable facilities and funding for those facilities. Charter schools typically do not receive local funding through bonds and must pay for their facilities out of general operating expenses. As a result, many charter schools turn to private financing and bond transactions to pay for a long-term facilities solution.
(b) The California School Finance Authority currently operates several valuable programs to assist schools seeking facilities financing, including its conduit revenue bond financing program. However, because charter schools are generally rated low or below investment grade, and the State of California does not directly guarantee or provide for payment of charter school revenue bonds issued through the California School Finance Authority, charter schools that issue revenue bonds to finance public school facilities face excessive interest rates.
(c) A program that provides funds to insure or guarantee school facility bonds issued by the California School Finance Authority to assist charter schools with the acquisition, renovation, or construction of school facilities, or the refinancing of existing charter school facility debt, would lower borrowing costs for those schools and ensure more funds remain in California’s classrooms.
SEC. 2.
The heading of Article 1 (commencing with Section 17170) is added to Chapter 18 of Part 10 of Division 1 of Title 1 of the Education Code, to read:
Article  1. General Provisions
SEC. 3.
The heading of Article 2 (commencing with Section 17172) is added to Chapter 18 of Part 10 of Division 1 of Title 1 of the Education Code, to read:
Article  2. California School Finance Authority
SEC. 4.
Article 3 (commencing with Section 17200) is added to Chapter 18 of Part 10 of Division 1 of Title 1 of the Education Code, to read:
Article  3. California Credit Enhancement Program
17200.
There is hereby created the California Credit Enhancement Program within the authority. The purpose of the program is to establish a fund to be used to insure facility bonds issued by the authority in order to achieve lower cost alternatives for public school facilities financing.
17201.
Notwithstanding Section 17182, in addition to the powers authorized by this chapter, the authority may leverage its funding for the California Credit Enhancement Program so the amount of credit insurance provided pursuant to the California Credit Enhancement Program exceeds the amount of funds on deposit in the California Credit Enhancement Account within the California School Finance Authority Fund created pursuant to Section 17203.
17202.
The authority shall adopt regulations to carry out the provisions of this article. The authority may consult with subject matter experts in the development of the regulations, which shall include, but not be limited to, all of the following:
(a) Eligibility criteria for participating public schools, including financial, performance, organizational, and governance criteria. A public school that is fiscally sound and that has a good credit rating may participate in the California Credit Enhancement Program.
(b) Parameters and procedures for the provision of credit enhancement to eligible financing transactions, including, but not limited to, maximum credit enhancement limits, and provisions necessary to accommodate federal, state, and local regulatory compliance.
(c) The application process and fee schedule.
(d) A definition of “default” for purposes of the program, and procedures so that, in the event of a default, funds from the California Credit Enhancement Account are paid out only after all other sources of payment and credit enhancement to an eligible financing transaction are exhausted.
(e) Options, in the event of a default, to ensure that the first priority of the facility is the continued use for public school purposes. These options may include, but are not limited to, the relet or sale of the facility to another public school and a mechanism by which the state has a right of first refusal to purchase the facility instead of it being sold in a foreclosure sale.
(f) The structure and guidelines for investing in the California Credit Enhancement Program.
17203.
There is hereby created the California Credit Enhancement Account within the California School Finance Authority Fund, established pursuant to Section 17181. The authority shall deposit funds identified for the California Credit Enhancement Program in the California Credit Enhancement Account. The authority may, at its discretion, deposit fees collected in accordance with this chapter in the California Credit Enhancement Account, in addition to the funds authorized to be collected pursuant to Section 17181. The authority may designate and hold separately one or more subaccounts within the California Credit Enhancement Account. Nothing in this section shall be construed to require the authority to deposit, or the Legislature to appropriate, funds for the purposes established in this article.
17204.
(a) Notwithstanding any other law, bond insurance, credit enhancement, or other guarantees issued under this chapter shall not be deemed to constitute a debt or liability of the state, or any political subdivision thereof, and shall not be deemed to be a pledge of the faith and credit of the state, or any political subdivision thereof, other than the authority. Bond insurance, credit enhancement, or other guarantees of the authority shall be payable solely from funds available in the California Credit Enhancement Account.
(b) Each bond insurance policy, credit enhancement instrument, or other guarantee of the authority issued under the California Credit Enhancement Program shall include a statement on its face that neither the State of California nor the authority is obligated to pay the principal or interest thereon, except from revenues of the authority available therefor, and shall also include a statement that neither the faith or credit, nor the taxing power of the State of California, or any political subdivision thereof, is pledged to the payment of the principal or interest of the bonds covered by the California Credit Enhancement Program.
(c) The issuance of bond insurance, credit enhancement, or other guarantees under this chapter shall not directly, indirectly, or contingently obligate the state, or any political subdivision thereof, to levy or pledge any form of taxation, or make any appropriation for their payment.

Summary: The California School Finance Authority Act establishes the California School Finance Authority, and authorizes the authority to, among other things, issue revenue bonds to finance or refinance educational facility projects for school districts, charter schools, county offices of education, and community college districts. Existing law establishes the California School Finance Authority Fund, administered by the authority, and continuously appropriates moneys in the fund for purposes of the act. This bill would create within the authority the California Credit Enhancement Program for the purpose of establishing a fund to insure school facility bonds issued by the authority pursuant to the act, as specified. The bill would create the California Credit Enhancement Account within the California School Finance Authority Fund, would authorize the authority to deposit fees collected pursuant to the program in that account, and would specify that bond insurance, credit enhancement, or other guarantees of the authority shall be payable solely from funds available in that account. By authorizing money in the California School Finance Authority Fund to be used for a new purpose, the bill would make an appropriation. The bill would require the authority to adopt regulations to carry out the program, including, but not limited to, regulations establishing eligibility criteria and a definition of “default” for purposes of the program.

An act to add the headings of Article 1 (commencing with Section 17170) and Article 2 (commencing with Section 17172) to, and to add Article 3 (commencing with Section 17200) to, Chapter 18 of Part 10 of Division 1 of Title 1 of the Education Code, relating to school facilities, and making an appropriation therefor.


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

SECTION 1.
Section 82002 of the Government Code is amended to read:
82002.
(a) “Administrative action” means either of the following:
(1) The proposal, drafting, development, consideration, amendment, enactment, or defeat by any state agency of any rule, regulation, or other action in any ratemaking proceeding or any quasi-legislative proceeding, which shall include any proceeding governed by Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2.
(2) With regard only to placement agents, the decision by any state agency to enter into a contract to invest state public retirement system assets on behalf of a state public retirement system.
(b) “Ratemaking proceeding” means, for the purposes of a proceeding before the Public Utilities Commission, any proceeding in which it is reasonably foreseeable that a rate will be established, including, but not limited to, general rate cases, performance-based ratemaking, and other ratesetting mechanisms.
(c) “Quasi-legislative proceeding” means, for purposes of a proceeding before the Public Utilities Commission, any proceeding that involves consideration of the establishment of a policy that will apply generally to a group or class of persons, including, but not limited to, rulemakings and investigations that may establish rules affecting an entire industry.
(d) This section shall remain in effect only until January 1, 2017, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2017, deletes or extends that date.
SEC. 2.
Section 82002 is added to the Government Code, to read:
82002.
(a) “Administrative action” means any of the following:
(1) The proposal, drafting, development, consideration, amendment, enactment, or defeat by any state agency of any rule, regulation, or other action in any ratemaking proceeding or any quasi-legislative proceeding, which shall include any proceeding governed by Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2.
(2) With regard only to placement agents, the decision by any state agency to enter into a contract to invest state public retirement system assets on behalf of a state public retirement system.
(3) Governmental Procurement.
(b) “Ratemaking proceeding” means, for purposes of a proceeding before the Public Utilities Commission, any proceeding in which it is reasonably foreseeable that a rate will be established, including, but not limited to, general rate cases, performance-based ratemaking, and other ratesetting mechanisms.
(c) “Quasi-legislative proceeding” means, for purposes of a proceeding before the Public Utilities Commission, any proceeding that involves consideration of the establishment of a policy that will apply generally to a group or class of persons, including, but not limited to, rulemakings and investigations that may establish rules affecting an entire industry.
(d) (1) “Governmental procurement” means any of the following with respect to influencing a state procurement contract for which the total estimated cost exceeds two hundred fifty thousand dollars ($250,000):
(A) Preparing the terms, specifications, bid documents, request for proposals, or evaluation criteria for the procurement contract.
(B) Soliciting for the procurement contract.
(C) Evaluating the procurement contract.
(D) Scoring criteria for the procurement contract.
(E) Awarding, approving, denying, or disapproving the procurement contract.
(F) Approving or denying an assignment, amendment, other than an amendment authorized and payable under the terms of the procurement contract as the procurement contract was finally awarded or approved, renewal, or extension of the procurement contract, or any other material change in the procurement contract resulting in financial benefit to the offeror.
(2) “Governmental procurement” does not include any activity undertaken by a placement agent, as that term is defined in Section 82047.3.
(e) This section shall become operative on January 1, 2017.
SEC. 3.
Section 82039 of the Government Code is amended to read:
82039.
(a) “Lobbyist” means either of the following:
(1) Any individual who receives two thousand dollars ($2,000) or more in economic consideration in a calendar month, other than reimbursement for reasonable travel expenses, or whose principal duties as an employee are, to communicate directly or through his or her agents with any elective state official, agency official, or legislative official for the purpose of influencing legislative or administrative action.
(2) A placement agent, as defined in Section 82047.3.
(b) An individual is not a lobbyist by reason of activities described in Section 86300.
(c) For the purposes of subdivision (a), a proceeding before the Public Utilities Commission constitutes “administrative action” if it meets any of the definitions set forth in subdivision (b) or (c) of Section 82002. However, a communication made for the purpose of influencing this type of Public Utilities Commission proceeding is not within subdivision (a) if the communication is made at a public hearing, public workshop, or other public forum that is part of the proceeding, or if the communication is included in the official record of the proceeding.
(d) This section shall remain in effect only until January 1, 2017, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2017, deletes or extends that date.
SEC. 4.
Section 82039 is added to the Government Code, to read:
82039.
(a) “Lobbyist” means any of the following:
(1) Any individual who receives two thousand dollars ($2,000) or more in economic consideration in a calendar month, other than reimbursement for reasonable travel expenses, or whose principal duties as an employee are, to communicate directly or through his or her agents with any elective state official, agency official, or legislative official for the purpose of influencing legislative or administrative action, except for administrative action that is governmental procurement, as defined in subdivision (d) of Section 82002.
(2) A placement agent, as defined in Section 82047.3.
(3) Any individual who receives two thousand dollars ($2,000) or more in economic consideration in a calendar month, other than reimbursement for reasonable travel expenses, to communicate directly or through his or her agents on behalf of any person other than his or her employer with any elective state official, agency official, or legislative official for the purpose of influencing administrative action that is governmental procurement, as defined in subdivision (d) of Section 82002.
(b) An individual is not a lobbyist by reason of activities described in Section 86300.
(c) For the purposes of subdivision (a), a proceeding before the Public Utilities Commission constitutes “administrative action” if it meets any of the definitions set forth in subdivision (b) or (c) of Section 82002. However, a communication made for the purpose of influencing this type of Public Utilities Commission proceeding is not within subdivision (a) if the communication is made at a public hearing, public workshop, or other public forum that is part of the proceeding, or if the communication is included in the official record of the proceeding.
(d) This section shall become operative on January 1, 2017.
SEC. 5.
Section 86207 is added to the Government Code, to read:
86207.
(a) Notwithstanding any other law, the penalties imposed by this title shall be the exclusive remedy for a violation of this chapter with respect to requirements for governmental procurement lobbying.
(b) This section shall become operative on January 1, 2017.
SEC. 6.
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. 7.
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.
SEC. 8.
This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to provide the Fair Political Practices Commission with authority and sufficient time to adopt regulations necessary to implement the substantive requirements of this act before the January 1, 2017, operative date, it is necessary that this bill take effect immediately.

Summary: Existing provisions of the Political Reform Act of 1974 regulate the activities of lobbyists, lobbying firms, and lobbyist employers in connection with attempts to influence legislative and administrative action by legislative and other state officials, including requirements that lobbyists, lobbying firms, and lobbyist employers register and file periodic reports with the Secretary of State. For purposes of these provisions, “lobbyist” is defined, in part, as an individual who receives $2,000 or more in economic consideration in a calendar month, or whose principal duties as an employee are, to communicate with specified officials for the purpose of influencing legislative or administrative action. This bill would revise the definition of “lobbyist” to include specified conduct by an individual acting on behalf of any person other than his or her employer for the purpose of influencing administrative action that is governmental procurement, which is further defined to include various actions regarding a state procurement contract for which the total estimated cost exceeds $250,000, thereby making the above-described lobbying requirements applicable to the specified attempts to influence governmental procurement. This bill would provide that the act’s penalty provisions are the exclusive remedy for a violation of the act’s requirements concerning governmental procurement lobbying. The bill would makes these provisions operative on January 1, 2017. Because a willful violation of the act’s provisions is punishable as a misdemeanor, 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. This bill would declare that it is to take effect immediately as an urgency statute.

An act to amend, add, and repeal Sections 82002 and 82039 of, and to add Section 86207 to, the Government Code, relating to the Political Reform Act of 1974, and declaring the urgency thereof, to take effect immediately.