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

SECTION 1.
Section 1063.2 of the Insurance Code is amended to read:
1063.2.
(a) The association shall pay and discharge covered claims, and in connection therewith, pay for or furnish loss adjustment services and defenses of claimants when required by policy provisions. It may do so either directly by itself or through a servicing facility or through a contract for reinsurance and assumption of liabilities by one or more member insurers or through a contract with the liquidator, upon terms satisfactory to the association and to the liquidator, under which payments on covered claims would be made by the liquidator using funds provided by the association.
(b) (1) The association shall be a party in interest in all proceedings involving a covered claim, and shall have the same rights as the insolvent insurer would have had if not in liquidation, including, but not limited to, the right to all of the following:
(A) Appear, defend, and appeal a claim in a court of competent jurisdiction.
(B) Receive notice of, investigate, adjust, compromise, settle, and pay a covered claim.
(C) Investigate, handle, and deny a noncovered claim.
(2) The association shall have no cause of action against the insureds of the insolvent insurer for any sums it has paid out, except as provided by this article.
(3) Nothing in paragraph (2) limits the association’s right to pursue unpaid reimbursements owed by an employer pursuant to a workers’ compensation insurance policy with a deductible if the employer was obligated to reimburse the insurer for benefits payments and related expenses paid by the insurer or the association from a special deposit or from other association funds pursuant to the terms of the policy and related agreements.
(c) (1) If damages against uninsured motorists are recoverable by the claimant from his or her own insurer, the applicable limits of the uninsured motorist coverage shall be a credit against a covered claim payable under this article. Any person having a claim that may be recovered under more than one insurance guaranty association or its equivalent shall seek recovery first from the association of the place of residence of the insured, except that if it is a first-party claim for damage to property with a permanent location, he or she shall seek recovery first from the association of the permanent location of the property, and if it is a workers’ compensation claim, he or she shall seek recovery first from the association of the residence of the claimant. Any recovery under this article shall be reduced by the amount of recovery from any other insurance guaranty association or its equivalent. A member insurer may recover in subrogation from the association only one-half of any amount paid by that insurer under uninsured motorist coverage for bodily injury or wrongful death (and nothing for a payment for anything else), in those cases where the injured person insured by such an insurer has proceeded under his or her uninsured motorist coverage on the ground that the tortfeasor is uninsured as a result of the insolvency of his or her liability insurer (an insolvent insurer as defined in this article), provided that the member insurer shall waive all rights of subrogation against the tortfeasor. Any amount paid a claimant in excess of the amount authorized by this section may be recovered by action, or other proceeding, brought by the association.
(2) Any claimant having collision coverage on a loss that is covered by the insolvent company’s liability policy shall first proceed against his or her collision carrier. Neither that claimant nor the collision carrier, if it is a member of the association, shall have the right to sue or continue a suit against the insured of the insolvent insurance company for that collision damage.
(d) The association shall have the right to recover from any person who is an affiliate of the insolvent insurer and whose liability obligations to other persons are satisfied in whole or in part by payments made under this article the amount of any covered claim and allocated claims expense paid on behalf of that person pursuant to this article.
(e) Any person having a claim or legal right of recovery under any governmental insurance or guaranty program that is also a covered claim, shall be required to first exhaust his or her right under the program. Any amount payable on a covered claim shall be reduced by the amount of any recovery under the program.
(f) “Covered claims” for unearned premium by lenders under insurance premium finance agreements as defined in Section 673 shall be computed as of the earliest cancellation date of the policy pursuant to Section 673.
(g) “Covered claims” shall not include any judgments against or obligations or liabilities of the insolvent insurer or the commissioner, as liquidator, or otherwise resulting from alleged or proven torts, nor shall any default judgment or stipulated judgment against the insolvent insurer, or against the insured of the insolvent insurer, be binding against the association.
(h) “Covered claims” shall not include any loss adjustment expenses, including adjustment fees and expenses, attorney’s fees and expenses, court costs, interest, and bond premiums, incurred prior to the appointment of a liquidator.
SEC. 2.
Section 1063.5 of the Insurance Code is amended and renumbered, to immediately precede Section 1063.5 of the Insurance Code, to read:
1063.45.
(a) (1) To the extent necessary to secure funds for the association for payment of administrative expenses of the association and covered claims of insolvent insurers and also for payment of reasonable costs of adjusting the claims, the association shall collect premium payments from its member insurers sufficient to discharge its obligations.
(2) The association shall allocate its claim payments and costs, incurred or estimated to be incurred, to one or more of the following categories:
(A) Workers’ compensation claims.
(B) Homeowners’ claims and automobile claims, including all of the following:
(i) Automobile material damage.
(ii) Automobile liability (both personal injury and death and property damage).
(iii) Medical payments.
(iv) Uninsured motorist claims.
(C) Claims other than workers’ compensation, homeowners, and automobile, as defined above.
(3) Separate premium payments shall be required for each category.
(4) The premium payments for each category shall be used to pay the claims and costs allocated to that category.
(b) (1) The rate of premium charged shall be a uniform percentage of net direct written premium in the preceding calendar year applicable to that category.
(2) The rate of premium charges to each member insurer in the appropriate categories shall initially be based on the written premium of each insurer as shown in the latest year’s annual financial statement on file with the commissioner.
(3) The initial premium shall be adjusted by applying the same rate of premium charge as initially used to each insurer’s written premium as shown on the annual statement for the second year following the year on which the initial premium charge was based.
(4) (A) The difference between the initial premium charge and the adjusted premium charge shall be charged or credited to each member insurer by the association as soon as practical after the filing of the annual statements of the member insurers with the commissioner for the year on which the adjusted premium is based.
(B) Any credit due in a specific category to a member insurer as a result of the adjusted premium calculation shall be refunded to the member insurer.
(c) (1) For purposes of this section, “net direct written premiums” means the amount of gross premiums, less return premiums, received in that calendar year upon business done in this state, other than premiums received for reinsurance.
(2) In cases of a dispute as to the amount of the net direct written premium between the association and one of its member insurers, the written decision of the commissioner shall be final.
(d) (1) The premium charged to any member insurer for any of the three categories or a category established by the association shall not be more than 2 percent of the net direct premium written in that category in this state by that member insurer per year, starting on January 1, 2003, until December 31, 2007, and thereafter shall be 1 percent per year, until January 1, 2015.
(2) Commencing January 1, 2015, the premium charged to any member insurer for any of the three categories or a category established by the association shall not be more than 2 percent of the net direct written premium unless there are bonds outstanding that were issued pursuant to Article 14.25 (commencing with Section 1063.50) or Article 14.26 (commencing with Section 1063.70).
(3) If bonds issued pursuant to either article are outstanding, the premium charged to a member insurer for the category for which the bond proceeds are being used to pay claims and expenses shall not be more than 1 percent of the net direct written premium for that category.
(e) (1) The association may exempt or defer, in whole or in part, the premium charge of any member insurer, if the premium charge would cause the member insurer’s financial statement to reflect an amount of capital or surplus less than the minimum amounts required for a certificate of authority by any jurisdiction in which the member insurer is authorized to transact insurance. However, during the period of deferment, no dividends shall be paid to shareholders or policyholders by the company whose premium charge was deferred.
(2) Deferred premium charges shall be paid when the payment will not reduce capital or surplus below required minimums.
(f) After all covered claims of the insolvent insurer and expenses of administration have been paid, any unused premiums and any reimbursements or claims dividends from the liquidator remaining in any category shall be retained by the association and applied to reduce future premium charges in the appropriate category.
(g) The commissioner may suspend or revoke the certificate of authority to transact business in this state of a member insurer that fails to pay a premium when due and after demand has been made.
(h) Interest at a rate equal to the current federal reserve discount rate plus 2
1/2
percent per annum shall be added to the premium of any member insurer that fails to submit the premium requested by the association within 30 days after the mailing request. However, in no event shall the interest rate exceed the legal maximum.
(i) This section shall apply only to premium charges paid prior to January 1, 2017.
(j) This section shall remain in effect only until January 1, 2020, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date.
SEC. 3.
Section 1063.5 is added to the Insurance Code, to read:
1063.5.
(a) (1) To the extent necessary to secure funds for the association for payment of the administrative expenses of the association, covered claims of insolvent insurers, and for payment of reasonable costs of adjusting the claims, the association shall collect premium payments from its member insurers sufficient to discharge its obligations.
(2) The association shall allocate its claim payments and costs, incurred or estimated to be incurred, to one or more of the following categories:
(A) Workers’ compensation claims.
(B) Homeowners’ claims and automobile claims, including all of the following:
(i) Automobile material damage.
(ii) Automobile liability (both personal injury and death and property damage).
(iii) Medical payments.
(iv) Uninsured motorist claims.
(C) Claims other than workers’ compensation, homeowners’, and automobile, as defined above.
(3) Separate premium payments shall be required for each category.
(4) The premium payments for each category shall be used to pay the claims and costs allocated to that category.
(b) (1) The rate of premium charged shall be a uniform percentage of net direct written premium in the preceding calendar year applicable to that category.
(2) The rate of premium charges to each member insurer in the appropriate categories shall be based on the net direct written premium of each member insurer as shown in the latest year’s annual financial statement on file with the commissioner.
(c) (1) For purposes of this section, “net direct written premiums” means the amount of gross premiums, less return premiums, received in that calendar year upon business done in this state, other than premiums received for reinsurance.
(2) In cases of a dispute as to the amount of the net direct written premium between the association and one of its member insurers, the written decision of the commissioner shall be final.
(d) In charging premiums to member insurers, the association shall adjust, if necessary, the net direct written premiums shown on a member insurer’s annual statement by excluding any premiums written for any lines of insurance or types of coverage not covered by this article under paragraph (3) of subdivision (c) of Section 1063.1.
(e) (1) The premium charged to any member insurer for any of the three categories or a category established by the association shall not be more than 2 percent of the net direct written premium unless there are bonds outstanding that were issued pursuant to Article 14.25 (commencing with Section 1063.50) or Article 14.26 (commencing with Section 1063.70).
(2) If bonds issued pursuant to either article are outstanding, the premium charged to a member insurer for the category for which the bond proceeds are being used to pay claims and expenses shall not be more than 1 percent of the net direct written premium for that category.
(f) (1) The association may exempt or defer, in whole or in part, the premium charge of any member insurer, if the premium charge would cause the member insurer’s financial statement to reflect an amount of capital or surplus less than the minimum amounts required for a certificate of authority by any jurisdiction in which the member insurer is authorized to transact insurance. However, during the period of deferment, no dividends shall be paid to shareholders or policyholders by the company whose premium charge was deferred.
(2) Deferred premium charges shall be paid when the payment will not reduce capital or surplus below required minimums.
(g) After all covered claims of insolvent insurers and expenses of administration have been paid, any unused premiums and any reimbursements or claims dividends from liquidators remaining in any category shall be retained by the association and applied to reduce future premium charges in the appropriate category.
(h) The commissioner may suspend or revoke the certificate of authority to transact business in this state of a member insurer that fails to pay a premium when due and after demand has been made.
(i) Interest at a rate equal to the current federal reserve discount rate plus 2
1/2
percent per annum shall be added to the premium of any member insurer that fails to submit the premium requested by the association within 30 days after the mailing request. However, in no event shall the interest rate exceed the legal maximum.
(j) This section shall apply only to premium charges paid on or after January 1, 2017.
SEC. 4.
Section 1063.14 of the Insurance Code is amended and renumbered, to immediately precede Section 1063.14 of the Insurance Code, to read:
1063.135.
(a) The plan of operation adopted pursuant to subdivision (c) of Section 1063 shall contain provisions whereby each member insurer is required to recoup in the year following the premium charge a sum reasonably calculated to recoup the premium charge paid by the member insurer under this article by way of a surcharge on premiums charged for insurance policies to which this article applies. Amounts recouped shall not be considered premiums for any other purpose, including the computation of gross premium tax or agents’ commission.
(b) The amount of any surcharge shall be separately stated on either a billing or policy declaration sent to an insured. The association shall determine the rate of the surcharge and the collection period for each category and these shall be mandatory for all member insurers of the association who write business in those categories. Member insurers who collect surcharges in excess of premiums paid pursuant to Section 1063.45 for an insolvent insurer shall remit the excess to the association as an additional premium within 30 days after the association has determined the amount of the excess recoupment and given notice to the member insurer of that amount. The excess shall be applied to reduce future premium charges in the appropriate category.
(c) The plan of operation may permit a member insurer to omit collection of the surcharge from its insureds when the expense of collecting the surcharge would exceed the amount of the surcharge. However, nothing in this section shall relieve the member insurer of its obligation to recoup the amount of surcharge otherwise collectible.
(d) This section shall apply only to premium charges paid prior to January 1, 2017.
(e) This section shall remain in effect only until January 1, 2020, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date.
SEC. 5.
Section 1063.14 is added to the Insurance Code, to read:
1063.14.
(a) (1) The plan of operation adopted pursuant to subdivision (c) of Section 1063 shall contain provisions whereby each member insurer is required to recoup in the year following the premium charge a sum calculated to recoup the premium charge paid by the member insurer under this article by way of a surcharge on premiums charged for insurance policies to which this article applies.
(2) Amounts recouped shall not be considered premiums for any other purpose, including the computation of gross premium tax or agents’ commission.
(b) (1) The amount of any surcharge shall be separately stated on either a billing or policy declaration sent to an insured. The association shall determine the rate of the surcharge and the collection period for each category, and these shall be mandatory for all member insurers of the association who write business in those categories.
(2) Each member insurer shall file a report in accordance with the provisions of the plan of operation indicating the amount of surcharges it has collected.
(A) Member insurers who collect surcharges in excess of premium charges paid in the preceding year pursuant to Section 1063.5 shall remit the excess to the association as an additional premium within 30 days after the association has determined the amount of the excess recoupment and given notice to the member insurer of that amount. The excess shall be applied to reduce future premium charges in the appropriate category.
(B) Member insurers who report surcharge collections that are less than what they paid in the preceding year’s premium charge shall receive reimbursement from the association for the shortfall in surcharge collection.
(c) (1) The plan of operation may permit a member insurer to omit collection of the surcharge from its insureds when the expense of collecting the surcharge would exceed the amount of the surcharge.
(2) A member insurer electing to omit collecting surcharges from any of its insureds shall not be entitled to any reimbursement from the association pursuant to subdivision (b).
(3) However, nothing in this section shall relieve the member insurer of its obligation to recoup the amount of surcharge otherwise collectible.
(d) This section shall apply only to premium charges paid on or after January 1, 2017.

Summary: Existing law creates the California Insurance Guarantee Association (CIGA) and requires all insurers admitted to transact specified insurance lines in this state to become members. Each time an insurer becomes insolvent, to the extent necessary to secure funds for payment of covered claims of that insolvent insurer and also for payment of reasonable costs of adjusting the claims, CIGA is required to collect premium payments from its member insurers sufficient to discharge its obligations, as specified. This bill, among other things, would no longer require an insurer to become insolvent in order for CIGA to collect premium payments from the member insurers and would require CIGA to collect premiums in order to secure funds for the payment of its administrative expenses. Under existing law, CIGA is required to be a party in interest in all proceedings involving a covered claim, and has the same rights as the insolvent insurer would have had if not in liquidation, but CIGA has no cause of action against the insureds of the insolvent insurer for any sums it has paid out, except as provided. This bill would provide that the above-stated provision denying CIGA a cause of action against insureds does not limit CIGA’s right to pursue unpaid reimbursements owed by an employer pursuant to a workers’ compensation insurance policy with a deductible if the employer was obligated to reimburse the insurer for benefits payments and related expenses paid by the insurer or CIGA from a special deposit or from other CIGA funds pursuant to the terms of the policy and related agreements. Existing law requires that the rate of premium charged be a uniform percentage of net direct written premium, as defined, in the preceding calendar year applicable to specific categories of insurance. The rate of premium charges to each member insurer in the appropriate categories are initially based on the written premium of each insurer as shown in the latest year’s annual financial statement on file with the Insurance Commissioner and are later adjusted, as provided. Existing law authorizes CIGA to refund any credit due in a specific category of insurance to a member insurer as a result of the adjusted premium calculation, as provided. This bill would instead require CIGA, with regard to premium charges paid prior to January 1, 2017, to refund to a member insurer any credit due in a specific category as a result of the adjusted premium calculation. This bill, with regard to premium charges paid on or after January 1, 2017, would delete the requirements that the rate of premium charges be initially based on the written premium of each insurer, that the premium charges be adjusted later as provided, and that the member insurer be eligible for a refund of any credit due to that member insurer as a result of the adjusted premium calculation, and would instead require that the rate of premium charges to each member insurer in the appropriate categories be based on the net direct written premium of each insurer as shown in the latest year’s annual financial statement on file with the commissioner. The bill would also make conforming changes. Existing law authorizes CIGA to exempt or defer a member insurer from paying the premium charge if the payment would cause the member insurer’s financial statement to reflect an amount of capital or surplus less than the minimum amounts required for a certificate of authority by any jurisdiction in which the member insurer is authorized to transact insurance. Deferred premium charges are required to be paid when the payment will not reduce capital or surplus below required minimums. These payments are credited against future premium charges to those companies receiving larger premium charges by virtue of the deferment. This bill would delete the requirement that the payments be credited against future premium charges to those companies receiving larger premium charges by virtue of the deferment. Existing law requires CIGA’s plan of operations to contain provisions requiring each member insurer to recoup the premium charge paid to CIGA from its insureds over a reasonable length of time by way of a reasonably calculated surcharge on insurance policies to which the provisions of CIGA apply. This bill would instead require each member insurer to recoup the premium charge from its insureds in the year following the charge. The bill, with regard to premium charges paid on or after January 1, 2017, among other things, would require the member insurer to file a report in accordance with the provisions of the plan of operation indicating the amount of surcharges it has collected, and would prohibit a member insurer electing to omit collecting surcharges from any of its insureds from being entitled to any reimbursement from CIGA, as specified.

An act to amend Section 1063.2 of, to amend, renumber, and add Sections 1063.5 and 1063.14 of, and to repeal Sections 1063.45 and 1063.135 of, the Insurance Code, relating to insurance.


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

SECTION 1.
Section 4425 of the Business and Professions Code is amended to read:
4425.
(a) As a condition for the participation of a pharmacy in the Medi-Cal program pursuant to Chapter 7 (commencing with Section 14000) of Division 9 of the Welfare and Institutions Code, the pharmacy, upon presentation of a valid prescription for the patient and the patient’s Medicare
card,
card or evidence of residency in California, such as a state-issued identification card or state-issued motor vehicle driver’s license,
shall charge Medicare beneficiaries
or other patients
a price that does not exceed the Medi-Cal reimbursement rate for prescription medicines, and an amount, as set by the State Department of Health Care Services to cover electronic transmission charges. However, Medicare beneficiaries
or other patients
shall not be allowed to use the Medi-Cal reimbursement rate for over-the-counter medications or compounded prescriptions.
(b) The State Department of Health Care Services shall provide a mechanism to calculate and transmit the price to the pharmacy, but shall not apply the Medi-Cal drug utilization review process for purposes of this section.
(c) The State Department of Health Care Services shall monitor pharmacy participation with the requirements of subdivision (a).
(d) The State Department of Health Care Services shall conduct an outreach program to inform Medicare beneficiaries
and California residents generally,
of their right to participate in the program described in subdivision (a), including, but not limited to, the following:
(1) Including on its Internet Web site the Medi-Cal reimbursement rate for, at minimum, 200 of the most commonly prescribed medicines and updating this information monthly.
(2) Providing a sign to participating pharmacies that the pharmacies shall prominently display at the point of service and at the point of sale, reminding the Medicare beneficiaries
and other eligible patients
to ask that the charge for their prescription be the same amount as the Medi-Cal reimbursement rate and providing the department’s telephone number, e-mail address, and Internet Web site address to access information about the program.
(e) If prescription drugs are added to the scope of benefits available under the federal Medicare
program,
Program,
the Senate Office of Research shall report that fact to the appropriate committees of the Legislature. It is the intent of the Legislature to evaluate the need to continue the implementation of this article
for Medicare beneficiaries
under those circumstances.
(f) This section shall not apply to a prescription that is covered by insurance.
For purposes of this section, “covered by insurance” does not apply to a prescription for a specific medication prescribed for a patient that is not included on the drug formulary maintained by that patient’s health care service plan or health insurer, and for which the patient is prepared to pay cash.
SECTION 1.
Section 4425 of the
Business and Professions Code
is amended to read:
4425.
(a)As a condition for the participation of a pharmacy in the Medi-Cal program pursuant to Chapter 7 (commencing with Section 14000) of Division 9 of the Welfare and Institutions Code, the pharmacy, upon presentation of a valid prescription for the patient and the patient’s Medicare card, shall charge Medicare beneficiaries a price that does not exceed the Medi-Cal reimbursement rate for prescription medicines, and an amount, as set by the State Department of Health Care Services to cover electronic transmission charges. However, Medicare beneficiaries shall not be allowed to use the Medi-Cal reimbursement rate for over-the-counter medications or compounded prescriptions.
(b)The State Department of Health Care Services shall provide a mechanism to calculate and transmit the price to the pharmacy, but shall not apply the Medi-Cal drug utilization review process for purposes of this section.
(c)The State Department of Health Care Services shall monitor pharmacy participation with the requirements of subdivision (a).
(d)The State Department of Health Care Services shall conduct an outreach program to inform Medicare beneficiaries of their right to participate in the program described in subdivision (a), including, but not limited to, the following:
(1)Including on its Internet Web site the Medi-Cal reimbursement rate for, at minimum, 200 of the most commonly prescribed medicines and updating this information monthly.
(2)Providing a sign to participating pharmacies that the pharmacies shall prominently display at the point of service and at the point of sale, reminding the Medicare beneficiaries to ask that the charge for their prescription be the same amount as the Medi-Cal reimbursement rate and providing the department’s telephone number, e-mail address, and Internet Web site address to access information about the program.
(e)If prescription drugs are added to the scope of benefits available under the federal Medicare program, the Senate Office of Research shall report that fact to the appropriate committees of the Legislature. It is the intent of the Legislature to evaluate the need to continue the implementation of this article under those circumstances.
(f)This section shall not apply to a prescription that is covered by insurance.
(g)(1)On or before February 1, 2017, the State Department of Health Care Services shall submit a report to the appropriate policy and fiscal committees of the Legislature on the effectiveness of subdivision (a), with data derived pursuant to subdivisions (b) to (d), inclusive, and other data as the department deems necessary. The department also shall include in the report other options and strategies to achieve the greatest savings on prescription drugs for patients.
(2)A report submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
(3)The requirement for submitting a report imposed under this subdivision is inoperative on February 1, 2021, pursuant to Section 10231.5 of the Government Code.

Summary: Existing law provides for the Medi-Cal program, which is administered by the State Department of Health Care Services, under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid program Program provisions. Existing law requires reimbursement to Medi-Cal pharmacy providers for drugs, as prescribed. As a condition for the participation of a pharmacy in the Medi-Cal program, and subject to specified exceptions, existing law requires the pharmacy, upon presentation of a valid prescription for a patient and the patient’s Medicare card, to charge Medicare beneficiaries a price that does not exceed the Medi-Cal reimbursement rate for prescription medicines and an amount, as set by the department, to cover electronic transmission charges. Existing law prohibits Medicare beneficiaries from being allowed to use the Medi-Cal reimbursement rate for over-the-counter medications or compound medications. Existing law provides that these provisions do not apply to a prescription that is covered by insurance. Existing law requires the department to conduct an outreach program to inform Medicare beneficiaries of their right to participate in this program. This bill would require the State Department of Health Care Services, on or before February 1, 2017, to report to the Legislature on the effectiveness of the Medi-Cal pharmacy procedures described above, as specified, and other options and strategies to achieve the greatest savings on prescription drugs for patients. expand these provisions to also apply to any patient upon presentation of a valid prescription for the patient and evidence of residency in California. The bill would provide that for purposes of these provisions “covered by insurance” does not apply to a prescription for a specific medication prescribed for a patient that is not included on the drug formulary maintained by that patient’s health care service plan or health insurer, and for which the patient is prepared to pay cash.

An act to amend Section 4425 of the Business and Professions Code, relating to pharmacies.


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

SECTION 1.
Section 18980 of the Food and Agricultural Code is amended to read:
18980.
(a) The application fee for a livestock meat inspector’s license or a processing inspector’s license is one hundred dollars ($100). If an applicant for a license does not take the examination within one year after the date of the receipt of the application by the secretary, the application expires. Reexamination requires the payment of an additional application fee.
(b) Each license shall expire on the last day of the calendar year for which it is issued. The fee shall not be prorated.
(c) This section shall remain in effect only until January 1, 2022, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2022, deletes or extends that date.
SEC. 2.
Section 18981 of the Food and Agricultural Code is amended to read:
18981.
(a) Application for renewal of a license accompanied by a fee of one hundred dollars ($100) shall be made on or before its expiration. Applicants for renewal of a license who have not paid the renewal fee by the expiration date of the license shall be assessed a twenty-five dollar ($25) penalty. Failure to pay the renewal fee plus the penalty within 90 days of expiration shall cause a revocation of a license.
(b) This section shall remain in effect only until January 1, 2022, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2022, deletes or extends that date.
SEC. 3.
Section 19010 of the Food and Agricultural Code is amended to read:
19010.
(a) Each person shall, before operating a meat processing establishment or a custom livestock slaughterhouse, file an application accompanied with an application fee, with the secretary for a license to operate the establishment. The application shall be in the form as the secretary may prescribe.
(b) Subject to Section 19011.5, the application fee for a meat processing establishment or a new, previously unlicensed custom livestock slaughterhouse is five hundred dollars ($500) for a license for one year for each establishment that the applicant desires to operate. Each license shall expire on the last day of the calendar year for which it was issued. The fee shall not be prorated.
(c) The fee for a license application submitted upon a change of ownership of an existing, previously licensed custom livestock slaughterhouse shall be based on the number of head of livestock slaughtered by the custom livestock slaughterhouse during the preceding October through September time period, as described in subdivision (a) of Section 19011.
(d) This section shall remain in effect only until January 1, 2022, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2022, deletes or extends that date.
SEC. 4.
Section 19011 of the Food and Agricultural Code is amended to read:
19011.
(a) Application for renewal of a license accompanied by a renewal fee shall be made on or before its expiration.
(1) Subject to Section 19011.5, the annual renewal fee for a custom livestock slaughterhouse is:
(A) Five hundred dollars ($500) if the plant slaughtered 1,000 or fewer head of livestock during the preceding October through September time period.
(B) Seven hundred fifty dollars ($750) if the plant slaughtered between 1,000 and 5,000 head of livestock during the preceding October through September time period.
(C) One thousand two hundred dollars ($1,200) if the plant slaughtered over 5,000 head of livestock during the preceding October through September time period.
(2) Subject to Section 19011.5, the annual renewal fee for a meat reprocessing establishment is five hundred dollars ($500).
(b) Applicants for renewal who have not paid the renewal fee by the expiration date of the license shall be assessed a penalty of 10 percent of the unpaid balance. Failure to pay the renewal fee plus the penalty within 90 days of expiration shall cause a revocation of a license.
(c) This section shall remain in effect only until January 1, 2022, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2022, deletes or extends that date.
SEC. 5.
Section 24744 of the Food and Agricultural Code is amended to read:
24744.
(a) Subject to Section 24745.5, the application fee for a new, previously unlicensed poultry plant is five hundred dollars ($500) for a license for one year for each poultry plant that the applicant desires to operate.
(b) The fee for a license application submitted upon change of ownership of an existing, previously licensed poultry plant shall be based on the number of poultry slaughtered by the poultry plant during the preceding October through September time period, as described in subdivision (b) of Section 24745.
(c) This section shall remain in effect only until January 1, 2022, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2022, deletes or extends that date.
SEC. 6.
Section 24745 of the Food and Agricultural Code, as added by Section 34 of Chapter 133 of the Statutes of 2011, is repealed.
SEC. 7.
Section 24745 of the Food and Agricultural Code, as added by Section 8 of Chapter 134 of the Statutes of 2011, is amended to read:
24745.
(a) Application for renewal of a license accompanied by a renewal fee shall be made on or before its expiration.
(b) Subject to Section 24745.5, the annual license renewal fee for a poultry plant is:
(1) Five hundred dollars ($500) if the plant slaughtered 10,000 or fewer poultry during the preceding October through September time period.
(2) Seven hundred fifty dollars ($750) if the plant slaughtered between 10,000 and 100,000 poultry during the preceding October through September time period.
(3) One thousand two hundred dollars ($1,200) if the plant slaughtered over 100,000 poultry during the preceding October through September time period.
(c) This section shall remain in effect only until January 1, 2022, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2022, deletes or extends that date.
SEC. 8.
Section 25053 of the Food and Agricultural Code is amended to read:
25053.
(a) The application fee for a license is one hundred dollars ($100).
(b) This section shall remain in effect only until January 1, 2022, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2022, deletes or extends that date.
SEC. 9.
Section 25055 of the Food and Agricultural Code is amended to read:
25055.
(a) Application for renewal of a license accompanied by a fee of one hundred dollars ($100) shall be made on or before the last day of the calendar year for which the license was issued.
(b) This section shall remain in effect only until January 1, 2022, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2022, deletes or extends that date.
SEC. 10.
Section 25056 of the Food and Agricultural Code is amended to read:
25056.
(a) Applicants for renewal who have not paid the renewal fee by the expiration date of the license shall be assessed a twenty-five dollar ($25) penalty. Failure to pay the renewal fee plus the penalty within 90 days of expiration shall cause a revocation of a license.
(b) This section shall remain in effect only until January 1, 2022, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2022, deletes or extends that date.

Summary: The California Meat and Poultry Supplemental Inspection Act requires, until January 1, 2017, each person to be licensed before operating a meat processing establishment or a custom livestock slaughterhouse and sets annual license renewal fees for custom livestock slaughterhouses and meat processing establishments. The act, until January 1, 2017, also establishes application fees for initial and renewal of licenses for livestock meat inspectors and processing inspectors. The act imposes a penalty on applicants for renewal who fail to pay the renewal fee by the expiration date of the meat processing establishment, custom livestock slaughterhouse, livestock meat inspector, or processing inspector license and provides cause for revocation of the license if the applicant fails to pay the renewal fee, plus the penalty, within 90 days of the license’s expiration. Existing law provides for the regulation, inspection, and licensing of poultry plants and for the regulation and licensing of poultry meat inspectors. Existing law, until January 1, 2017, specifies the license application fees for a new, previously unlicensed poultry plant and for a license application submitted upon change of ownership of an existing, previously licensed poultry plant. Existing law, until January 1, 2017, requires that an application for renewal of a license of a poultry plant, accompanied by a specified renewal fee, be made on or before the expiration of the license. Existing law, until January 1, 2017, specifies the application fee for a poultry meat inspector license application and the renewal fee of that license. Existing law, until January 1, 2017, imposes a penalty of $25 on applicants for renewal who fail to pay the renewal fee by the expiration date of the license, and provides for revocation of the license if the applicant fails to pay the renewal fee, plus the penalty, within 90 days of the license’s expiration. This bill would extend these licensing and inspector provisions to January 1, 2022, and would delete an obsolete provision.

An act to amend Sections 18980, 18981, 19010, 19011, 24744, 25053, 25055, and 25056 of, and to repeal and amend Section 24745 of, the Food and Agricultural Code, relating to meat.


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

SECTION 1.
Section 300 of the Welfare and Institutions Code is amended to read:
300.
A child who comes within any of the following descriptions is within the jurisdiction of the juvenile court which may adjudge that person to be a dependent child of the court:
(a) The child has suffered, or there is a substantial risk that the child will suffer, serious physical harm inflicted nonaccidentally upon the child by the child’s parent or guardian. For purposes of this subdivision, a court may find there is a substantial risk of serious future injury based on the manner in which a less serious injury was inflicted, a history of repeated inflictions of injuries on the child or the child’s siblings, or a combination of these and other actions by the parent or guardian that indicate the child is at risk of serious physical harm. For purposes of this subdivision, “serious physical harm” does not include reasonable and age-appropriate spanking to the buttocks if there is no evidence of serious physical injury.
(b) (1)  The child has suffered, or there is a substantial risk that the child will suffer, serious physical harm or illness, as a result of the failure or inability of his or her parent or guardian to adequately supervise or protect the child, or the willful or negligent failure of the child’s parent or guardian to adequately supervise or protect the child from the conduct of the custodian with whom the child has been left, or by the willful or negligent failure of the parent or guardian to provide the child with adequate food, clothing, shelter, or medical treatment, or by the inability of the parent or guardian to provide regular care for the child due to the parent’s or guardian’s mental illness, developmental disability, or substance abuse. A child shall not be found to be a person described by this subdivision solely due to the lack of an emergency shelter for the family. Whenever it is alleged that a child comes within the jurisdiction of the court on the basis of the parent’s or guardian’s willful failure to provide adequate medical treatment or specific decision to provide spiritual treatment through prayer, the court shall give deference to the parent’s or guardian’s medical treatment, nontreatment, or spiritual treatment through prayer alone in accordance with the tenets and practices of a recognized church or religious denomination, by an accredited practitioner thereof, and shall not assume jurisdiction unless necessary to protect the child from suffering serious physical harm or illness. In making its determination, the court shall consider (1) the nature of the treatment proposed by the parent or guardian, (2) the risks to the child posed by the course of treatment or nontreatment proposed by the parent or guardian, (3) the risk, if any, of the course of treatment being proposed by the petitioning agency, and (4) the likely success of the courses of treatment or nontreatment proposed by the parent or guardian and agency. The child shall continue to be a dependent child pursuant to this subdivision only so long as is necessary to protect the child from risk of suffering serious physical harm or illness.
(2) The Legislature finds and declares that a child who is sexually trafficked, as described in Section 236.1 of the Penal Code, or who receives food or shelter in exchange for, or who is paid to perform, sexual acts described in Section 236.1 or 11165.1 of the Penal Code,
or who has engaged in the conduct described in subdivision (b) of Section 647 or Section 653.22 of the Penal Code,
and whose parent or guardian failed to, or was unable to, protect the child, is within the description of this subdivision, and that this finding is declaratory of existing law. These children shall be known as commercially sexually exploited children.
(c) The child is suffering serious emotional damage, or is at substantial risk of suffering serious emotional damage, evidenced by severe anxiety, depression, withdrawal, or untoward aggressive behavior toward self or others, as a result of the conduct of the parent or guardian or who has no parent or guardian capable of providing appropriate care. A child shall not be found to be a person described by this subdivision if the willful failure of the parent or guardian to provide adequate mental health treatment is based on a sincerely held religious belief and if a less intrusive judicial intervention is available.
(d) The child has been sexually abused, or there is a substantial risk that the child will be sexually abused, as defined in Section 11165.1 of the Penal Code, by his or her parent or guardian or a member of his or her household, or the parent or guardian has failed to adequately protect the child from sexual abuse when the parent or guardian knew or reasonably should have known that the child was in danger of sexual abuse.
(e) The child is under the age of five years and has suffered severe physical abuse by a parent, or by any person known by the parent, if the parent knew or reasonably should have known that the person was physically abusing the child. For the purposes of this subdivision, “severe physical abuse” means any of the following: any single act of abuse which causes physical trauma of sufficient severity that, if left untreated, would cause permanent physical disfigurement, permanent physical disability, or death; any single act of sexual abuse which causes significant bleeding, deep bruising, or significant external or internal swelling; or more than one act of physical abuse, each of which causes bleeding, deep bruising, significant external or internal swelling, bone fracture, or unconsciousness; or the willful, prolonged failure to provide adequate food. A child shall not be removed from the physical custody of his or her parent or guardian on the basis of a finding of severe physical abuse unless the social worker has made an allegation of severe physical abuse pursuant to Section 332.
(f) The child’s parent or guardian caused the death of another child through abuse or neglect.
(g) The child has been left without any provision for support; physical custody of the child has been voluntarily surrendered pursuant to Section 1255.7 of the Health and Safety Code and the child has not been reclaimed within the 14-day period specified in subdivision (g) of that section; the child’s parent has been incarcerated or institutionalized and cannot arrange for the care of the child; or a relative or other adult custodian with whom the child resides or has been left is unwilling or unable to provide care or support for the child, the whereabouts of the parent are unknown, and reasonable efforts to locate the parent have been unsuccessful.
(h) The child has been freed for adoption by one or both parents for 12 months by either relinquishment or termination of parental rights or an adoption petition has not been granted.
(i) The child has been subjected to an act or acts of cruelty by the parent or guardian or a member of his or her household, or the parent or guardian has failed to adequately protect the child from an act or acts of cruelty when the parent or guardian knew or reasonably should have known that the child was in danger of being subjected to an act or acts of cruelty.
(j) The child’s sibling has been abused or neglected, as defined in subdivision (a), (b), (d), (e), or (i), and there is a substantial risk that the child will be abused or neglected, as defined in those subdivisions. The court shall consider the circumstances surrounding the abuse or neglect of the sibling, the age and gender of each child, the nature of the abuse or neglect of the sibling, the mental condition of the parent or guardian, and any other factors the court considers probative in determining whether there is a substantial risk to the child.
It is the intent of the Legislature that this section not disrupt the family unnecessarily or intrude inappropriately into family life, prohibit the use of reasonable methods of parental discipline, or prescribe a particular method of parenting. Further, this section is not intended to limit the offering of voluntary services to those families in need of assistance but who do not come within the descriptions of this section. To the extent that savings accrue to the state from child welfare services funding obtained as a result of the enactment of the act that enacted this section, those savings shall be used to promote services which support family maintenance and family reunification plans, such as client transportation, out-of-home respite care, parenting training, and the provision of temporary or emergency in-home caretakers and persons teaching and demonstrating homemaking skills. The Legislature further declares that a physical disability, such as blindness or deafness, is no bar to the raising of happy and well-adjusted children and that a court’s determination pursuant to this section shall center upon whether a parent’s disability prevents him or her from exercising care and control. The Legislature further declares that a child whose parent has been adjudged a dependent child of the court pursuant to this section shall not be considered to be at risk of abuse or neglect solely because of the age, dependent status, or foster care status of the parent.
As used in this section, “guardian” means the legal guardian of the child.
SECTION 1.
Section 602 of the
Welfare and Institutions Code
is amended to read:
602.
(a)Except as provided in subdivision (b), any person who is under 18 years of age when he or she violates any law of this state or of the United States or any ordinance of any city or county of this state defining crime, other than an ordinance establishing a curfew based solely on age, is within the jurisdiction of the juvenile court, which may adjudge that person to be a ward of the court.
(b)Any person who is alleged, when he or she was 14 years of age or older, to have committed one of the following offenses shall be prosecuted under the general law in a court of criminal jurisdiction:
(1)Murder, as described in Section 187 of the Penal Code, if one of the circumstances enumerated in subdivision (a) of Section 190.2 of the Penal Code is alleged by the prosecutor, and the prosecutor alleges that the minor personally killed the victim.
(2)The following sex offenses, if the prosecutor alleges that the minor personally committed the offense and alleges that one of the circumstances enumerated in subdivision (d) or (e) of Section 667.61 of the Penal Code applies:
(A)Rape, as described in paragraph (2) of subdivision (a) of Section 261 of the Penal Code.
(B)Spousal rape, as described in paragraph (1) of subdivision (a) of Section 262 of the Penal Code.
(C)Forcible sex offenses in concert with another, as described in Section 264.1 of the Penal Code.
(D)Forcible lewd and lascivious acts on a child under 14 years of age, as described in subdivision (b) of Section 288 of the Penal Code.
(E)Forcible sexual penetration, as described in subdivision (a) of Section 289 of the Penal Code.
(F)Sodomy or oral copulation in violation of Section 286 or 288a of the Penal Code, by force, violence, duress, menace, or fear of immediate and unlawful bodily injury on the victim or another person.
(G)Lewd and lascivious acts on a child under 14 years of age, as defined in subdivision (a) of Section 288, unless the defendant qualifies for probation under subdivision (d) of Section 1203.066 of the Penal Code.

Summary: Existing law establishes the jurisdiction of the juvenile court, which may adjudge certain children to be dependents of the court under certain circumstances, including when the child is abused, a parent or guardian fails to adequately supervise or protect the child, as specified, or a parent or guardian fails to provide the child with adequate food, clothing, shelter, or medical treatment. Existing law declares that a child is within the dependency jurisdiction of the juvenile court if the child is a victim of sexual trafficking, or receives food, shelter, or money in exchange for specified sexual acts, as a result of the failure or inability of his or her parent or guardian to protect the child, and declares that this is declaratory of existing law. This bill would additionally include a child within the dependency jurisdiction of the juvenile court if the child solicits or engages in any act of prostitution or loiters in a public place with the intent to commit prostitution, and the child’s parent or guardian has failed to protect the child. The bill would state that these provisions are declaratory of existing law. The Arnold-Kennick Juvenile Court Law provides that any person who is under 18 years of age when he or she violates any criminal law while in this state, except an age curfew ordinance or any other specified offense, comes within the jurisdiction of the juvenile court, which may adjudge the person a ward of the court. This bill would make technical, nonsubstantive changes to that provision.

An act to amend Section
602
300
of the Welfare and Institutions Code, relating to juveniles.


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

SECTION 1.
The Legislature finds and declares all of the following:
(a) Food is the single most prevalent item in California’s waste stream, with over 5.5 million tons of food dumped in landfills every year in the state.
(b) Four percent of the total energy budget, about 12 percent of the land, and 23 percent of all freshwater consumed in the United States is used to grow food that goes uneaten.
(c) Discarded food is a drain on our economy, costing consumers and industry $162 billion each year nationally.
(d) Reducing food losses by just 15 percent would be equivalent to enough food to feed more than 25 million Americans every year. According to estimates, more than 6 million Californians, including one in four children, suffer from food insecurity.
(e) Dumping uneaten food and other organic waste into landfills releases more than 8.3 million tons of greenhouse gases each year in California, contributing 20 percent of the state’s methane emissions.
(f) Misinterpretation of the date labels on foods is a key factor leading to food waste in American households, and surveys show that 56 to 90 percent of consumers discard food prematurely as a result of misinterpreting food date labels.
(g) It is the public policy of this state that consumers benefit from uniform and accurate expiration date labeling.
SEC. 2.
Section 114094.6 is added to the Health and Safety Code, to read:
114094.6.
(a) If a food manufacturer or retail food facility chooses to include a quality date on foods not identified pursuant to subdivision (b) of Section 114094.7, the quality date shall be displayed in accordance with this section.
(b) (1) On or before July 1, 2017, food for sale or offered for sale in the state that includes a quality date shall meet all of the following requirements:
(A) The quality date shall be displayed with the uniform phrase “best if used by” unless and until the department specifies a different uniform term. The department shall have discretion to modify these guidelines, after consulting with stakeholders in an open public process.
(B)
The quality date and phrase shall be displayed in a single easy-to-read type style using upper and lower case letters in the standard form, in 8-point type size or larger, located in a conspicuous place on the food package.
The
quality
date shall be expressed by the first three letters of the month followed by the numeral designating the appropriate calendar day and year or by expressing the calendar month numerically followed by a numeral designating the calendar day and a numeral designating the year.
(2) The department may adopt regulations modifying these guidelines, after consulting with stakeholders in an open public process, in accordance with the Administrative Procedure Act (Chapter 3.5 (commending with Section 11340) of Part 1 of Division 3 of the Government Code).
(c) For purposes of this article, “quality date” means the date indicated on the label affixed to the packaging or container of food, pursuant to subdivision (b), that communicates to consumers the date after which the food’s quality may begin to deteriorate.
(d) On and after July 1, 2017, a retail food facility shall not sell or offer for sale a food item that is not labeled in accordance with this section or Section 114094.7, as applicable.
(e) (1) A retail food facility may donate a food item that is not labeled in accordance with this section.
(2) This section does not prohibit, and shall not be construed to discourage, the sale, donation, or use of food after the food’s quality date has passed.
(3) Nothing in this section shall be construed to create a legal liability for a retail food provider to ensure that the manufacturer has properly labeled the product.
SEC. 3.
Section 114094.7 is added to the
Health and Safety Code
, to read:
114094.7.
(a)On and after July 1, 2017, a retail food facility that offers for sale any food identified by the department pursuant to subdivision (b) shall, at the time of sale to the consumer, cause the package or container of that food to be labeled in a manner that identifies the elevated-risk date, in accordance with the regulations adopted by the department pursuant to subdivision (c).
(b)The department shall establish a list of ready-to-eat foods that have a high level of risk associated with consumption after a specified date, such as those classified by the United States Food and Drug Administration and the United States Department of Agriculture as “very high risk” or “high risk” for Listeria monocytogenes, and post that list on the department’s Internet Web site.
(c)(1)On or before July 1, 2017, the department shall adopt regulations, in accordance with the Administrative Procedure Act (Chapter 3.5 (commending with Section 11340) of Part 1 of Division 3 of the Government Code), requiring that a retail food facility display the elevated-risk date with the uniform phrase “expires on” unless and until the department specifies a different uniform term.
(2) The department may adopt regulations modifying these guidelines, after consulting with stakeholders in an open public process, in accordance with the Administrative Procedure Act.
(d)For purposes of this section, “elevated risk” means the date indicated on the label affixed to the packaging or container of food, pursuant to subdivision (a), after which there is a high level of risk associated with the consumption of the food product.
(e)On and after July 1, 2017, a retail food facility shall not sell or offer for sale a food item that is not labeled in accordance with this section or Section 114094.6, as applicable.
SEC. 3.
Section 114094.7 is added to the Health and Safety Code, to read:
114094.7.
(a) A food manufacturer may include an elevated risk date on products that require time/temperature control for safety (TCS), as defined by the United States Food and Drug Administration (FDA) Food Code, as published in 2013.
(b) (1) On and after July 1, 2017, food for sale or offered for sale in the state that includes an elevated risk date on the product shall meet both of the following requirements:
(A) The elevated risk date shall be displayed with the uniform phrase “expires on,” unless and until the department specifies a different uniform phrase.
(B) The date shall be expressed by the first three letters of the month, followed by the numerals designating the appropriate calendar day and year or by expressing the calendar month numerically followed by numerals designating the calendar day and year.
(2) The department may adopt regulations adding or exempting foods from the provisions of this section, after consulting with stakeholders in an open public process, in accordance with the Administrative Procedures Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(3) The department may modify the guidelines in this subdivision after consulting with stakeholders in an open public process.
(c) For purposes of this section, “elevated risk date” means the date indicated on the label affixed to the packaging or container after which there is a high level of risk associated with the consumption of the food product.
(d) Nothing in this section shall be construed to create a legal liability for the retail food provider to ensure that the manufacturer has properly labeled the food product.
SEC. 4.
Section 114094.8 is added to the Health and Safety Code, to read:
114094.8.
On or before December 1, 2017, the department shall provide consumer guidance on the meaning of the quality date and safety date food labels.
SEC. 5.
Section 114094.9 is added to the Health and Safety Code, to read:
114094.9.
(a) A retail food facility shall not sell or offer for sale a food item that is labeled with a “sell-by” date, or any date in the labeling of food that is intended to communicate primarily to a distributor or retailer for purposes of stock rotation that is not a quality date or an elevated-risk date.
(b) This section does not prohibit the use of sell-by dates that are presented in a coded format that is not easily readable by consumers.
(c) Nothing in this section shall be construed to create a legal liability for the retail food provider to ensure that the manufacturer has properly labeled the product.
SEC. 6.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, 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.
However, if the Commission on State Mandates determines that this act contains other 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 California Retail Food Code, provides for regulation by the State Department of Public Health of food manufacturers and retail food facilities and the preparation and sale of foods. Under existing law, local health agencies are primarily responsible for enforcing the code. A person who violates any provision of the code is guilty of a misdemeanor, except as otherwise provided. This bill would, among other things, require the department to identify a list of ready-to-eat foods that have a high level of risk associated with consumption after a specified date and to post that list on its Internet Web site. The bill would, beginning July 1, 2017, require a food manufacturer or retail food facility that chooses to include a quality date, as defined, on foods for sale that are not identified on the department’s list to display that date using the phrase “best if used by” in 8-point type size or larger type, as specified. The bill would, beginning July 1, 2017, require a retail food facility food manufacturer that offers for sale a food on the department’s list elects to include an elevated risk date on products that require timetemperature control for safety (TCS) to label the package or container of that food identifying the elevated-risk date, as defined, using the phrase “expires on.” The bill would require the department to adopt related regulations on or before July 1, 2017. on” or another term specified by the department. The bill would specify that it does not create a legal liability for a retail food provider to ensure that the manufacturer has properly labeled the product . The bill would make related findings and declarations. By creating new crimes and imposing additional enforcement duties on local health agencies, 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 with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

An act to add Sections 114094.6, 114094.7, 114094.8, and 114094.9 to the Health and Safety Code, relating to food safety.


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

SECTION 1.
The Legislature finds and declares all of the following:
(a) Heavy container corridors connect the Ports of Los Angeles and Long Beach to warehouses and distribution centers throughout the port area.
(b)
These corridors allow port customers to move certain types of heavy cargo, such as agricultural goods, and from the port complex, which enhance the competitiveness of the two ports.
(c)
These specially designated corridors include streets located in the Cities of Los Angeles, Long Beach, Carson, as well as California state routes. Overweight trucks that have a gross vehicle weight in excess of 80,000 pounds, but no more than 95,000 pounds, are allowed to operate on heavy container corridors upon issuance of permits from their respective jurisdictions.
(d)
The Cities of Long Beach and Carson share a common method of determining whether a truck is overweight while traversing heavy container corridors. However, the City of Los Angeles currently uses a different method of determining whether a truck is overweight.
(e)
This difference causes confusion, results in users of the heavy container corridors in the City of Los Angeles to incur fines and penalties, and incentivizes noncompliance with safety measures required on the corridors.
(f)
It is the intent of the Legislature in enacting this act that the Cities of Los Angeles, Carson, and Long Beach all utilize the same methodology to enforce the weight limits established by permits issued by the Department of Transportation for trucks traveling along heavy container corridors.
SECTION 1.
SEC. 2.
Section 35700.5 of the Vehicle Code is amended to read:
35700.5.
(a) The Department of Transportation, upon adoption of an ordinance or resolution that is in conformance with the provisions of this section by the City of Carson, the City of Long Beach, and the City of Los Angeles, covering designated routes, may issue a special permit to the operator of a vehicle, combination of vehicles, or mobile equipment, permitting the operation and movement of the vehicle, combination, or equipment, and its load, on the 3.66-mile portion of State Route 47 and State Route 103 known as the Terminal Island Freeway, between Willow Street in the City of Long Beach and Terminal Island in the City of Long Beach and the City of Los Angeles, and on the 2.4-mile portion of State Highway Route 1, that is between Sanford Avenue in the City of Los Angeles and Harbor Avenue in the City of Long Beach, if the vehicle, combination, or equipment meets all of the following criteria:
(1) The vehicle, combination of vehicles, or mobile equipment is used to transport intermodal cargo containers that are moving in international commerce.
(2) The vehicle, combination of vehicles, or mobile equipment, in combination with its load, has a maximum gross weight in excess of the maximum gross weight limit of vehicles and loads specified in this chapter, but does not exceed 95,000 pounds gross vehicle weight.
(3) (A) The vehicle, combination of vehicles, or mobile equipment conforms to the axle weight limits specified in Section 35550.
(B) The vehicle, combination of vehicles, or mobile equipment conforms to the axle weight limits in Section 35551, except as specified in subparagraph (C).
(C) Vehicles, combinations of vehicles, or mobile equipment that impose more than 80,000 pounds total gross weight on the highway by any group of two or more consecutive axles, exceed 60 feet in length between the extremes of any group of two or more consecutive axles, or have more than six axles shall conform to weight limits that shall be determined by the Department of Transportation.
(b) The permit issued by the Department of Transportation shall be required to authorize the operation or movement of a vehicle, combination of vehicles, or mobile equipment described in subdivision (a). The permit shall not authorize the movement of hazardous materials or hazardous wastes, as those terms are defined by local, state, and federal law. The following criteria shall be included in the application for the permit:
(1) A description of the loads and vehicles to be operated under the permit.
(2) An agreement wherein each applicant agrees to be responsible for all injuries to persons and for all damage to real or personal property of the state and others directly caused by or resulting from the operation of the applicant’s vehicles or combination of vehicles under the conditions of the permit. The applicant shall agree to hold harmless and indemnify the state and all its agents for all costs or claims arising out of or caused by the movement of vehicles or combination of vehicles under the conditions of the permit.
(3) The applicant shall provide proof of financial responsibility that covers the movement of the shipment as described in subdivision (a). The insurance shall meet the minimum requirements established by law.
(4) An agreement to carry a copy of the permit in the vehicle at all times and furnish the copy upon request of an employee of the Department of the California Highway Patrol or the Department of Transportation.
(5) An agreement to place an indicia, developed by the Department of Transportation, in consultation with the Department of the California Highway Patrol, upon the vehicle identifying it as a vehicle possibly operating under this section. The indicia shall be displayed in the lower right area of the front windshield of the power unit. The Department of Transportation may charge a fee to cover the cost of producing and issuing this indicia.
(c) The permit issued pursuant to subdivision (a) shall be valid for one year. The permit may be canceled by the Department of Transportation for any of the following reasons:
(1) The failure of the applicant to maintain any of the conditions required pursuant to subdivision (b).
(2) The failure of the applicant to maintain a satisfactory rating, as required by Section 34501.12.
(3) A determination by the Department of Transportation that there is sufficient cause to cancel the permit because the continued movement of the applicant’s vehicles under the permit would jeopardize the safety of the motorists on the roadway or result in undue damage to the highways listed in this section.
(d) This section does not authorize an applicant or holder of a special permit under subdivision (a) to operate a vehicle or combination of vehicles in excess of the maximum gross weight limit of vehicles and loads specified in this chapter outside of the designated corridors identified in subdivision (a). A violation of this subdivision shall result in the revocation of the permit.
(e) The Department of Transportation may charge a fee to cover the cost of issuing a permit pursuant to subdivision (a).
(f) Notwithstanding Section 35700 and Article 6 (commencing with Section 35780),
if
the City of Carson, the City of Long Beach, and the City of Los Angeles
adopt an ordinance or resolution, as described in subdivision (a), the ordinance or resolution shall conform with the weight limits determined by the Department of Transportation pursuant to this section.
shall use and enforce the axle and gross vehicle weight limits used by the Department of Transportation for a permitted vehicle, combination of vehicles, or mobile equipment operating or moving on a route described in subdivision (a) by individual, and not combined, axle group calculations.

Summary: Existing law authorizes the Department of Transportation, upon adoption of an ordinance or resolution by the City of Carson, the City of Long Beach, and the City of Los Angeles, to issue a special permit to the operator of a vehicle, combination of vehicles, or mobile equipment, permitting the operation and movement of the vehicle, combination, or equipment, and its load, on specified routes in those cities if the vehicle, combination, or equipment meets specified criteria. Under existing law, those criteria include that the vehicle, combination of vehicles, or mobile equipment is used to transport intermodal cargo containers that are moving in international commerce, and that the maximum gross weight of the vehicles and loads not exceed 95,000 pounds gross vehicle weight. This bill would require the above-mentioned ordinance or resolution to conform with the weight limits determined by the Department of Transportation. the City of Carson, the City of Long Beach, and the City of Los Angeles to use and enforce the axle and gross vehicle weight limits used by the Department of Transportation for a permitted vehicle, combination of vehicles, or mobile equipment operating or moving on the above-described routes by individual, and not combined, axle group calculations.

An act to amend Section 35700.5 of the Vehicle Code, relating to vehicles.


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

SECTION 1.
(a) The Legislature finds and declares that having a healthy housing market that provides an adequate supply of homes affordable to Californians at all income levels is critical to the economic prosperity and quality of life in the state.
(b) The Legislature further finds and declares all of the following:
(1) Funding approved by the state’s voters in 2002 and 2006, as of June 2014, has financed the construction, rehabilitation, and preservation of over 14,000 shelter spaces and 149,000 affordable homes. These numbers include thousands of supportive homes for people experiencing homelessness. In addition, these funds have helped tens of thousands of families become or remain homeowners. Nearly all of the voter-approved funding for affordable housing was awarded by the beginning of 2016.
(2) The requirement in the Community Redevelopment Law that redevelopment agencies set aside 20 percent of tax increment for affordable housing generated roughly $1 billion per year. With the elimination of redevelopment agencies, this funding stream has disappeared.
(3) In 2014, the Legislature committed 10 percent of ongoing cap-and-trade funds for affordable housing that reduces greenhouse gas emissions and dedicated $100 million in one-time funding for affordable multifamily and permanent supportive housing. In addition, the people of California thoughtfully approved the repurposing of $600 million in already committed bond funds for the creation of affordable rental and permanent supportive housing for veterans through the passage of Proposition 41.
(4) Despite these investments, the need in the State of California greatly exceeds the available resources, with recent data showing 36.2 percent of mortgaged homeowners and 47.7 percent of all renters are spending more than 35 percent of their household incomes on housing.
(5) California has 12 percent of the United States population, but 20 percent of its homeless population. California has the highest percentage of unsheltered homeless in the nation, with 63 percent of homeless Californians not having shelter. California has 24 percent of the nation’s homeless veteran’s population and one-third of the nations’ chronically homeless population. California also has the largest populations of unaccompanied homeless children and youth, with 30 percent of the national total.
(6) Furthermore, four of the top 10 metropolitan areas in the country with the highest rate of homelessness are in the following metropolitan areas in California: San Jose-Sunnyvale-Santa Clara, Los Angeles-Long Beach-Santa Ana, Fresno, and Stockton.
(7) California continues to have the second lowest homeownership rate in the nation, and the Los Angeles metropolitan area is now a majority renter area. In fact, five of the eight lowest homeownership rates are in metropolitan areas in California.
(8) Los Angeles and Orange Counties have been identified as the epicenter of overcrowded housing, and numerous studies have shown that children in crowded homes have poorer health, worse scores on mathematics and reading tests, and higher rates of depression and behavioral problems—even when poverty is taken into account.
(9) Millions of Californians are affected by the state’s chronic housing shortage, including seniors, veterans, people experiencing chronic homelessness, working families, people with mental, physical, or developmental disabilities, agricultural workers, people exiting jails, prisons, and other state institutions, survivors of domestic violence, and former foster and transition-aged youth.
(10) Eight of the top 10 hardest hit cities by the foreclosure crisis in the nation were in California. They include the Cities of Stockton, Modesto, Vallejo, Riverside, San Bernardino, Merced, Bakersfield, and Sacramento.
(11) California’s workforce continues to experience longer commute times as persons in the workforce seek affordable housing outside the areas in which they work. If California is unable to support the construction of affordable housing in these areas, congestion problems will strain the state’s transportation system and exacerbate greenhouse gas emissions.
(12) Many economists agree that the state’s higher than average unemployment rate is due in large part to massive shrinkage in the construction industry from 2005 to 2009, inclusive, including losses of nearly 700,000 construction-related jobs, a 60-percent decline in construction spending, and an 83-percent reduction in residential permits. Restoration of a healthy construction sector will significantly reduce the state’s unemployment rate.
(13) The lack of sufficient housing impedes economic growth and development by making it difficult for California employers to attract and retain employees.
SEC. 2.
Chapter 10 (commencing with Section 34191.10) is added to Part 1.85 of Division 24 of the Health and Safety Code, to read:
CHAPTER  10. Local Control Affordable Housing Act
34191.10.
(a) On or before ____, and on or before the same date each year thereafter, the Department of Finance shall determine the amount of General Fund savings for the fiscal year as a result of the dissolution of redevelopment agencies pursuant to this part.
(b) (1) Upon appropriation, 50 percent of the savings computed pursuant to subdivision (a) or one billion dollars ($1,000,000,000), whichever is
greater,
less,
in each fiscal year shall be allocated to the Department of Housing and Community
Development to provide funding
Development. One-half of these funds shall be retained by the department for state level programs and one-half shall be provided
to local agencies for housing purposes pursuant to subdivision (c).
(2) An appropriation described in paragraph (1) shall be suspended for any fiscal year in which the transfer of General Fund revenues to the Budget Stabilization Account is suspended or reduced or funds are returned to the General Fund from the Budget Stabilization Account pursuant to Section 22 of Article XVI of the California Constitution.
(c) The Department of Housing and Community Development shall create an equitable funding
formula,
formula for funding distributed to local agencies,
which shall be geographically balanced and shall take into account factors of need including, but not limited to, poverty rates and lack of supply of affordable housing for persons of low and moderate incomes in local jurisdictions.
(d) (1) A local agency that has received funds pursuant to this chapter shall only use the funds for any of the following purposes:
(A) The development, acquisition, rehabilitation, and preservation or provision of rental housing and homeownership opportunities that are affordable to extremely low, very low, low-, and moderate-income households, including necessary capitalized reserves for operating and rental subsidies and resident services.
(B) Capitalized reserves for capitalized operating costs, rental subsidies, and resident services connected to the creation of new permanent supportive housing, including, but not limited to, developments funded through the Veterans Housing and Homelessness Prevention Program.
(C) Modifications to homes to increase accessibility and visitability, in conjunction with the construction, acquisition, and rehabilitation or preservation of homes affordable to lower income households.
(D) The acquisition and rehabilitation and reuse of foreclosed and vacant homes.
(E) Infrastructure related to affordable infill housing development and other related infill development infrastructure.
(F) The acquisition of land necessary for the development of affordable housing as part of an overall development strategy.
(G) Rapid rehousing of homeless individuals and families.
(2) At least 25 percent of the expenditures shall be directed towards housing for persons of extremely low income and at least 50 percent of the expenditures shall be directed towards housing for persons of very low income.
(3) Any housing built with funds received pursuant to this chapter shall require, by recorded covenants or restrictions, that housing units built shall remain available at affordable housing costs to, and occupied by, persons and families of very low, low-, or moderate-income households for the longest feasible time, but for not less than 55 years for rental units and 45 years for owner-occupied units.
(4) Any local agency that will receive funds pursuant to this chapter shall provide the Department of Housing and Community Development a plan for a no net loss of housing as a result of destruction of any affordable housing units.
(5) No more than 5 percent of funds received pursuant to
these provisions
this chapter
may be used for administrative costs.
(6) Any local agency that receives funds pursuant to
these provisions
this chapter
shall provide an annual report to the Department of Housing and Community Development on the expenditures of the funds.
(e) If a local agency that receives funds does not expend those funds in full within five years, the local agency shall return those
unexpended
funds to the Department of Housing and Community Development, and the department
may
shall
award those funds to another qualifying local agency.
(f) For the purposes of this chapter the following terms have the following meanings:
(1) “Extremely low income households” has the same meaning as used in Section 50106.
(2) “Low-income households” has the same meaning as the term “lower income households” as defined in Section 50079.5.
(3) “Moderate-income households” has the same meaning as the term “persons and families of moderate income” as defined in Section 50093.
(4) “Very low income households” has the same meaning as used in Section 50105.

Summary: Existing law, effective February 1, 2012, dissolved all redevelopment agencies and community development agencies and provides for the designation of successor agencies, as specified. Existing law requires successor agencies to service the enforceable obligations of the dissolved agencies and otherwise wind down the affairs of the dissolved agencies. This bill would establish the Local Control Affordable Housing Act to require the Department of Finance, on or before and on or before the same date each year thereafter, to determine the state General Fund savings for the fiscal year as a result of the dissolution of redevelopment agencies. The bill would provide that, upon appropriation, 50 of that amount or $1,000,000,000, whichever is greater, less, be allocated to the Department of Housing and Community Development to provide funding Development. The bill would require the department to retain 12 of these funds for state level programs and to provide the other 12 to local agencies for housing purposes, except as specified. The bill would require the Department of Housing and Community Development to create an equitable funding formula, formula for funding distributed to local agencies, which shall the bill would require to be geographically balanced and shall take into account factors of need including, but not limited to, poverty rates and lack of supply of affordable housing for persons of low and moderate incomes in local jurisdictions. The bill would also specify the housing purposes for which those funds may be used.

An act to add Chapter 10 (commencing with Section 34191.10) to Part 1.85 of Division 24 of the Health and Safety Code, relating to housing.


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

SECTION 1.
Section 15146 of the Education Code is amended to read:
15146.
(a) The bonds shall be issued and sold pursuant to Section 15140, payable out of the interest and sinking fund of the school district or community college district. The governing board of the school district or community college district may sell the bonds at a negotiated sale or by competitive bidding.
(b) (1) Before the sale, the governing board of the school district or community college district shall adopt a resolution, as an agenda item at a public meeting, that includes all of the following:
(A) Express approval of the method of sale.
(B) Statement of the reasons for the method of sale selected.
(C) Disclosure of the identity of the bond counsel, and the identities of the bond underwriter and the financial adviser if either or both are used for the sale, unless these individuals have not been selected at the time the resolution is adopted, in which case the governing board of the school district or community college district shall disclose their identities at the public meeting occurring after they have been selected.
(D) Estimates of the costs associated with the bond issuance.
(E) If the sale includes bonds that allow for the compounding of interest, including, but not limited to, capital appreciation bonds, disclosure of the financing term and time of maturity, repayment ratio, and the estimated change in the assessed value of taxable property within the school district or community college district over the term of the bonds.
(2) If the sale includes bonds that allow for the compounding of interest, including, but not limited to, capital appreciation bonds, the resolution shall be publicly noticed on at least two consecutive meeting agendas, first as an information item and second as an action item.
(c) If the sale includes bonds that allow for the compounding of interest, including, but not limited to, capital appreciation bonds, the agenda item shall identify that bonds that allow for the compounding of interest are proposed and the governing board of the school district or community college district shall be presented with all of the following:
(1) An analysis containing the total overall cost of the bonds that allow for the compounding of interest.
(2) A comparison to the overall cost of current interest bonds.
(3) The reason bonds that allow for the compounding of interest are being recommended.
(4) A copy of the disclosure made by the underwriter in compliance with Rule G-17 adopted by the federal Municipal Securities Rulemaking Board.
(d) After the sale, the governing board of the school district or community college district shall do both of the following:
(1) Present the actual cost information for the sale at its next scheduled public meeting.
(2) Submit an itemized summary of the costs of the bond sale to the California Debt and Investment Advisory Commission.
(e) The governing board of the school district or community college district shall ensure that all necessary information and reports regarding the sale or planned sale of bonds by the school district or community college district it governs are submitted to the California Debt and Investment Advisory Commission in compliance with Section 8855 of the Government Code.
(f) The bonds may be sold at a discount not to exceed 5 percent and at an interest rate not to exceed the maximum rate permitted by law. If the sale is by competitive bid, the governing board of the school district or community college district shall comply with Sections 15147 and 15148. The bonds shall be sold by the governing board of the school district or community college district no later than the date designated by the governing board of the school district or community college district as the final date for the sale of the bonds.
(g) The proceeds of the sale of the bonds, exclusive of any premium received, shall be deposited in the county treasury to the credit of the building fund of the school district, or community college district as designated by the California Community Colleges Budget and Accounting Manual. The proceeds deposited shall be drawn out as other school moneys are drawn out. The bond proceeds withdrawn shall not be applied to any purposes other than those for which the bonds were issued. At no time shall the proceeds be withdrawn by the school district or community college district for investment outside the county treasury. Any premium or accrued interest received from the sale of the bonds shall be deposited in the interest and sinking fund of the school district or community college district.
(h) The governing board of the school district or community college district may cause to be deposited proceeds of sale of any series of the bonds in an amount not exceeding 2 percent of the principal amount of the bonds in a costs of issuance account, which may be created in the county treasury or held by a fiscal agent appointed by the school district or community college district for this purpose, separate from the building fund and the interest and sinking fund of the school district or community college district. The proceeds deposited shall be drawn out on the order of the governing board of the school district or community college district or an officer of the school district or community college district duly authorized by the governing board of the school district or community college district to make the order, only to pay authorized costs of issuance of the bonds. Upon the order of the governing board of the school district or community college district or duly authorized officer of the school district or community college district, the remaining balance shall be transferred to the county treasury to the credit of the building fund of the school district or community college district. The deposit of bond proceeds pursuant to this subdivision shall be a proper charge against the building fund of the school district or community college district.
(i) The governing board of the school district or community college district may cause to be deposited proceeds of sale of any series of the bonds in the interest and sinking fund of the school district or community college district in the amount of the annual reserve permitted by Section 15250 or in any lesser amount, as the governing board of the school district or community college district shall determine from time to time. The deposit of bond proceeds pursuant to this subdivision shall be a proper charge against the building fund of the school district or community college district.
(j) The governing board of the school district or community college district may cause to be deposited proceeds of sale of any series of the bonds in the interest and sinking fund of the school district or community college district in the amount not exceeding the interest scheduled to become due on that series of bonds for a period of two years from the date of issuance of that series of bonds. The deposit of bonds proceeds pursuant to this subdivision shall be a proper charge against the building fund of the school district or community college district.

Summary: The California Constitution limits the maximum amount of any ad valorem tax on real property to 1 of the full cash value of the property. The California Constitution states that the 1 limitation for ad valorem taxes does not apply to ad valorem taxes or special assessments to pay the interest and redemption charges on bonded indebtedness incurred by a school district, community college district, or county office of education for the construction, reconstruction, rehabilitation, or replacement of school facilities approved by 55 of the voters if the proposition includes specified accountability requirements. Existing law requires the proceeds of the sale of the bonds, exclusive of any premium received, to be deposited in the county treasury to the credit of the building fund of the school district, or community college district as designated by the California Community Colleges Budget and Accounting Manual. This bill would prohibit the proceeds from the sale of bonds from being withdrawn by the school district or community college district for investment outside the county treasury.

An act to amend Section 15146 of the Education Code, relating to school bonds.