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

SECTION 1.
Section 650 of the Business and Professions Code is amended to read:
650.
(a) Except as provided in Chapter 2.3 (commencing with Section 1400) of Division 2 of the Health and Safety Code, the offer, delivery, receipt, or acceptance by any person licensed under this division or the Chiropractic Initiative Act of any rebate, refund, commission, preference, patronage dividend, discount, or other consideration, whether in the form of money or otherwise, as compensation or inducement for referring patients, clients, or customers to any person, irrespective of any membership, proprietary interest, or coownership in or with any person to whom these patients, clients, or customers are referred is unlawful.
(b) The payment or receipt of consideration for services other than the referral of patients which is based on a percentage of gross revenue or similar type of contractual arrangement shall not be unlawful if the consideration is commensurate with the value of the services furnished or with the fair rental value of any premises or equipment leased or provided by the recipient to the payer.
(c) The offer, delivery, receipt, or acceptance of any consideration between a federally qualified health center, as defined in Section 1396d(l)(2)(B) of Title 42 of the United States Code, and any individual or entity providing goods, items, services, donations, loans, or a combination thereof to the health center entity pursuant to a contract, lease, grant, loan, or other agreement, if that agreement contributes to the ability of the health center entity to maintain or increase the availability, or enhance the quality, of services provided to a medically underserved population served by the health center, shall be permitted only to the extent sanctioned or permitted by federal law.
(d) Except as provided in Chapter 2.3 (commencing with Section 1400) of Division 2 of the Health and Safety Code and in Sections 654.1 and 654.2 of this code, it shall not be unlawful for any person licensed under this division to refer a person to any laboratory, pharmacy, clinic (including entities exempt from licensure pursuant to Section 1206 of the Health and Safety Code), or health care facility solely because the licensee has a proprietary interest or coownership in the laboratory, pharmacy, clinic, or health care facility, provided, however, that the licensee’s return on investment for that proprietary interest or coownership shall be based upon the amount of the capital investment or proportional ownership of the licensee which ownership interest is not based on the number or value of any patients referred. Any referral excepted under this section shall be unlawful if the prosecutor proves that there was no valid medical need for the referral.
(e) Except as provided in Chapter 2.3 (commencing with Section 1400) of Division 2 of the Health and Safety Code and in Sections 654.1 and 654.2 of this code, it shall not be unlawful to provide nonmonetary remuneration, in the form of hardware, software, or information technology and training services, as described in subsections (x) and (y) of Section 1001.952 of Title 42 of the Code of Federal Regulations, as amended October 4, 2007, as published in the Federal Register (72 Fed. Reg. 56632 and 56644), and subsequently amended versions.
(f) “Health care facility” means a general acute care hospital, acute psychiatric hospital, skilled nursing facility, intermediate care facility, and any other health facility licensed by the State Department of Public Health under Chapter 2 (commencing with Section 1250) of Division 2 of the Health and Safety Code.
(g) Notwithstanding the other subdivisions of this section or any other provision of law, the payment or receipt of consideration for advertising, wherein a licensee offers or sells services through a third-party advertiser, shall not constitute a referral of patients when the third-party advertiser does not itself recommend, endorse, or otherwise select a licensee. The fee paid to the third-party advertiser shall be commensurate with the service provided by the third-party advertiser. If the licensee determines, after consultation with the purchaser of the service, that the service provided by the licensee is not appropriate for the purchaser or if the purchaser elects not to receive the service for any reason and requests a refund, the purchaser shall receive a refund of the full purchase price as determined by the terms of the advertising service agreement between the third-party advertiser and the licensee. The licensee shall disclose in the advertisement that a consultation is required and that the purchaser will receive a refund if not eligible to receive the service. This subdivision shall not apply to basic health care services, as defined in subdivision (b) of Section 1345 of the Health and Safety Code, or essential health benefits, as defined in Section 1367.005 of the Health and Safety Code and Section 10112.27 of the Insurance Code. The entity that provides the advertising shall be able to demonstrate that the licensee consented in writing to the requirements of this subdivision. A third-party advertiser shall make available to prospective purchasers advertisements for services of all licensees then advertising through the third-party advertiser in the applicable geographic region. In any advertisement offering a discount price for a service, the licensee shall also disclose the regular, nondiscounted price for that service.
(h) A violation of this section is a public offense and is punishable upon a first conviction by imprisonment in a county jail for not more than one year, or by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code, or by a fine not exceeding fifty thousand dollars ($50,000), or by both that imprisonment and fine. A second or subsequent conviction is punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code, or by that imprisonment and a fine of fifty thousand dollars ($50,000).

Summary: Existing law provides for the licensure and regulation of various healing arts professions and vocations by boards within the Department of Consumer Affairs. Under existing law, it is unlawful for licensed healing arts practitioners, except as specified, to offer, deliver, receive, or accept any rebate, refund, commission, preference, patronage dividend, discount, or other consideration, in the form of money or otherwise, as compensation or inducement for referring patients, clients, or customers to any person. Existing law makes a violation of this provision a public offense punishable upon a first conviction by imprisonment, as specified, or a fine not exceeding $50,000, or by imprisonment and that fine. This bill would provide that the payment or receipt of consideration for advertising, wherein a licensed healing arts practitioner offers or sells services through a third-party advertiser, does not constitute a referral of patients when the third-party advertiser does not itself recommend, endorse, or otherwise select a licensee. The bill would require that the fee paid to the third-party advertiser be commensurate with the service provided by the third-party advertiser. The bill would require the purchaser of the service to receive a refund of the full purchase price if the licensee determines, after consultation with the purchaser, that the service provided by the licensee is not appropriate for the purchaser, or if the purchaser elects not to receive the service for any reason and requests a refund, as specified. The bill would require that a licensee disclose in the advertisement that a consultation is required and that the purchaser will receive a refund if not eligible to receive the service. The bill would specify that these provisions do not apply to basic health care services or essential health benefits, as defined. The bill would also provide that the entity that provides advertising is required to be able to demonstrate that the licensee consented in writing to these provisions. The bill would require a third-party advertiser to make available to prospective purchasers advertisements for services of all licensees then advertising through the third-party advertiser in the applicable geographic region and to disclose, in any advertisement offering a discount price for a service, the regular, nondiscounted price for that service.

An act to amend Section 650 of the Business and Professions Code, relating to the healing arts.


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

SECTION 1.
Section 1544 is added to the Civil Code, to read:
1544.
(a) A partial or interim payment or reimbursement of any kind made in connection with an environmental disaster by the responsible polluter or any agent or entity related to the responsible polluter to any recipient shall not release the polluter from liability to the recipient for any claim related to the environmental disaster or for any future claim by the recipient against the polluter, or for both current and future claims. Any such partial or interim payment or reimbursement shall not be conditioned upon the recipient’s agreement to release the polluter from liability for any current or future claim.
(b) Notwithstanding subdivision (a), a payment or reimbursement made in connection with an environmental disaster by the responsible polluter or any agent or entity related to the responsible polluter to any recipient may be credited against the liability of the polluter, agent, or entity to the recipient for any current or future claim that is related to the environmental disaster.
(c) A temporary or final settlement of any kind made in connection with an environmental disaster by the responsible polluter or any agent or entity related to the responsible polluter, to any claimant, shall release the responsible polluter, agent, or entity from liability to the claimant only for acts, omissions, or injuries that are believed by the claimant to have occurred prior to the date of the settlement, and shall not release any claim that is unknown to the claimant at the time of the settlement, occurs subsequent to the settlement, or that is unrelated to the environmental disaster.
(d) Any agreement in violation of subdivision (a) or (c) that is entered into on or after February 1, 2017, is void as a matter of law and against public policy.
(e) For purposes of this section, a “partial or interim payment or reimbursement” is a payment of the recipient’s immediate out-of-pocket expenses, including, but not limited to, food, clothing, and shelter.
(f) The provisions of this section shall only apply to an agreement relating to acts, omissions, or injuries in connection with an environmental disaster that occurred at Southern California Gas Company’s Aliso Canyon gas storage facility or contamination surrounding the Exide Technologies facility in the City of Vernon.
(g) This section shall not apply to any action against a public entity as defined in Section 811.2 of the Government Code.
SEC. 2.
Section 340.85 is added to the Code of Civil Procedure, immediately following Section 340.8, to read:
340.85.
(a) Notwithstanding Section 340.8, in any civil action for injury or illness based upon exposure to a hazardous material or toxic substance, the time for commencement of the action shall be no later than either three years from the date of injury, or three years after the plaintiff becomes aware of, or reasonably should have become aware of, (1) an injury, (2) the physical cause of the injury, and (3) sufficient facts to put a reasonable person on inquiry notice that the injury was caused or contributed to by the wrongful act of another, whichever occurs later.
(b) Notwithstanding Section 340.8, in an action for the wrongful death of any plaintiff’s decedent, based upon exposure to a hazardous material or toxic substance, the time for commencement of an action shall be no later than either (1) three years from the date of the death of the plaintiff’s decedent, or (2) three years from the first date on which the plaintiff is aware of, or reasonably should have become aware of, the physical cause of the death and sufficient facts to put a reasonable person on inquiry notice that the death was caused or contributed to by the wrongful act of another, whichever occurs later.
(c) For purposes of this section:
(1) A “civil action for injury or illness based upon exposure to a hazardous material or toxic substance” does not include an action subject to Section 340.2 or 340.5.
(2) Media reports regarding the hazardous material or toxic substance contamination do not, in and of themselves, constitute sufficient facts to put a reasonable person on inquiry notice that the injury or death was caused or contributed to by the wrongful act of another.
(d) The provisions of this section shall only apply to an action relating to exposure to a hazardous material or toxic substance in connection with an environmental disaster that occurred at Southern California Gas Company’s Aliso Canyon gas storage facility or contamination surrounding the Exide Technologies facility in the City of Vernon.
(e) This section shall not apply to any action against a public entity as defined in Section 811.2 of the Government Code.
SEC. 3.
Section 1021.3 is added to the Code of Civil Procedure, to read:
1021.3.
(a) In any action for private nuisance against an environmental polluter defendant arising out of an environmental disaster for which the defendant has been adjudged civilly liable, the court, upon motion, may award reasonable attorneys’ fees to a prevailing plaintiff against the defendant.
(b) The provisions of this section shall only apply to an environmental disaster that occurred at Southern California Gas Company’s Aliso Canyon gas storage facility or contamination surrounding the Exide Technologies facility in the City of Vernon.
(c) This section shall not apply to any action against a public entity as defined in Section 811.2 of the Government Code.
SEC. 4.
The Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution to achieve just and efficient results in civil litigation involving the unique circumstances of damages resulting from specific environmental disasters within the state.

Summary: Existing law provides that an obligation is extinguished by a release given to the debtor by the creditor, upon a new consideration, or in writing, with or without new consideration. A general release does not extend to claims the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor. Under this bill, a partial or interim payment or reimbursement, made in connection with an environmental disaster by the responsible polluter or any agent or entity related to the responsible polluter to any recipient, would not release the polluter from liability to the recipient for any claim related to the environmental disaster or for any future claim by the recipient against the polluter, or for both current and future claims. The bill would prohibit any such partial or interim payment or reimbursement from being conditioned upon the recipient’s agreement to release the polluter from liability for any current or future claim. The bill would allow such a payment or reimbursement to any recipient to be credited against the liability of the polluter, agent, or entity to the recipient for any current or future claim that is related to the environmental disaster. Under the bill, a temporary or final settlement of any kind made in connection with an environmental disaster by the responsible polluter or any agent or entity related to the responsible polluter, to any claimant, would release the responsible polluter, agent, or entity from liability to the claimant only for acts, omissions, or injuries that are believed by the claimant to have occurred prior to the date of the settlement, and would not release any claim that is unknown to the claimant at the time of the settlement, occurs subsequent to the settlement, or that is unrelated to the environmental disaster. The bill would make any agreement in violation of those prohibitions that is entered into on or after February 1, 2017, void as a matter of law and against public policy. Existing law establishes statutes of limitations for civil actions for injury or illness or wrongful death based upon exposure to a hazardous material or toxic substance other than asbestos, as specified. For injury or illness, the statute of limitations is 2 years from the date of injury, or 2 years after the plaintiff becomes aware of, or reasonably should have become aware of, an injury, the physical cause of the injury, and sufficient facts to put a reasonable person on inquiry notice that the injury was caused or contributed to by the wrongful act of another, whichever occurs later. For wrongful death, the statute of limitations is no later than either 2 years from the date of the death of the plaintiff’s decedent, or 2 years from the first date on which the plaintiff is aware of, or reasonably should have become aware of, the physical cause of the death and sufficient facts to put a reasonable person on inquiry notice that the death was caused or contributed to by the wrongful act of another, whichever occurs later. This bill would, notwithstanding the above provision, establish a statute of limitations of 3 years for specified civil actions for injury, illness, or wrongful death based upon exposure to a hazardous material or toxic substance other than asbestos. Under existing law, except as attorneys’ fees are specifically provided for by statute, the measure and mode of compensation of attorneys is left to the agreement of the parties. This bill would authorize the court, in any action for private nuisance against an environmental polluter defendant arising out of an environmental disaster for which the defendant has been adjudged civilly liable, upon motion, to award reasonable attorneys’ fees to a prevailing plaintiff against the defendant. This bill would limit the application of its provisions to damages caused by an environmental disaster that occurred at Southern California Gas Company’s Aliso Canyon gas storage facility, as specified, or contamination surrounding the Exide Technologies facility in the City of Vernon. The bill would specify that its provisions do not apply to any action against a public entity, as defined. This bill would make legislative findings and declarations as to the necessity of a special statute for these regions.

An act to add Section 1544 to the Civil Code, and to add Sections 340.85 and 1021.3 to the Code of Civil Procedure, relating to environmental disaster.


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

SECTION 1.
Section 1635.1 of the Health and Safety Code is amended to read:
1635.1.
(a) Except as provided in subdivision (b), every tissue bank operating in California on or after July 1, 1992, shall have a current and valid tissue bank license issued or renewed by the department pursuant to Section 1639.2 or 1639.3.
(b) This chapter does not apply to any of the following:
(1) The collection, processing, storage, or distribution of human whole blood or its derivatives by blood banks licensed pursuant to Chapter 4 (commencing with Section 1600) or any person exempt from licensure under that chapter.
(2) The collection, processing, storage, or distribution of tissue for autopsy, biopsy, training, education, or for other medical or scientific research or investigation, when transplantation of the tissue is not intended or reasonably foreseeable.
(3) The collection of tissue by an individual physician and surgeon from his or her patient or the implantation of tissue by an individual physician and surgeon into his or her patient. This exemption shall not be interpreted to apply to any processing or storage of the tissue, except for the processing and storage of semen by an individual physician and surgeon when the semen was collected by that physician and surgeon from a semen donor or obtained by that physician and surgeon from a tissue bank licensed under this chapter.
(4) The collection, processing, storage, or distribution of fetal tissue or tissue derived from a human embryo or fetus.
(5) The collection, processing, storage, or distribution by an organ procurement organization (OPO), as defined in Section 486.302 of Title 42 of the Code of Federal Regulations, if the OPO, at the time of collection, processing, storage, and distribution of the tissue, has been designated by the Secretary of Health and Human Services as an OPO and meets the requirements of Sections 486.304 and 486.306 of Title 42 of the Code of Federal Regulations, as applicable.
(6) The storage of prepackaged, freeze-dried bone by a general acute care hospital.
(7) The storage of freeze-dried bone and dermis by any licensed dentist practicing in a lawful practice setting, if the freeze-dried bone and dermis have been obtained from a licensed tissue bank, are stored in strict accordance with a kit’s package insert and any other manufacturer instructions and guidelines, and are used for the express purpose of implantation into a patient.
(8) The storage of a human cell, tissue, or cellular- or tissue-based product (HCT/P), as defined by the federal Food and Drug Administration (FDA), that is either a medical device approved pursuant to Section 510 or 515 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 360 et seq.) or that is a biologic product approved under Section 351 of the federal Public Health Service Act (42 U.S.C. Sec. 262) by a licensed physician or podiatrist acting within the scope and authority of his or her license and practicing in a lawful practice setting. The medical device or biologic product must have been obtained from a California-licensed tissue bank, been stored in strict accordance with the device’s or product’s package insert and any other manufacturer instructions, and used solely for the express purpose of direct implantation into or application on the practitioner’s own patient. In order to be eligible for the exemption in this paragraph, the entity or organization where the physician or podiatrist who is eligible for the exemption is practicing shall notify the department, in writing, that the practitioner is licensed and meets the requirements of this paragraph. The notification shall include all of the following:
(A) A list of all practitioners to whom the notice applies.
(B) Acknowledgment that each listed practitioner uses the medical device or biologic product in the scope and authority of his or her license and practice for the purposes of direct patient care as described in this paragraph.
(C) A statement that each listed practitioner agrees to strictly abide by the directions for storage in the device’s or product’s package insert and any other manufacturer instructions and guidelines.
(D) Acknowledgment by each practitioner that the medical device or biologic product shall not be resold or distributed.
(9) The collection, processing, storage, or distribution of any organ, as defined in paragraph (2) of subdivision (c) of Section 1635, within a single general acute care hospital, as defined in subdivision (a) of Section 1250, operating a Medicare-approved transplant program.
(10) The storage of allograft tissue by a person if all of the following apply:
(A) The person, as defined in Section 1635, is a hospital, or an outpatient setting regulated by the Medical Board of California pursuant to Chapter 1.3 (commencing with Section 1248), including an ambulatory surgical center.
(B) The person maintains a log that includes the date on which the allograft tissue was received, the expiration date of the allograft tissue, the date on which each allograft tissue is used for clinical purposes, and the disposition of any allograft tissue samples that remain unused at the time the allograft tissue expires.
(C) The allograft tissue meets all of the following:
(i) The allograft tissue was obtained from a tissue bank licensed by the state.
(ii) Each allograft tissue is individually boxed and labeled with a unique identification number and expiration date so that opening the shipping container will not disturb or otherwise alter any of the allograft tissue that is not being utilized.
(iii) The allograft tissue is intended for the express purpose of implantation into or application on a patient.
(iv) The allograft tissue is not intended for further distribution.
(v) The allograft tissue is registered with the FDA and designated to be maintained at ambient room temperature requiring no refrigeration.

Summary: Existing federal law governs the processing, storage, and use of human tissue and human cell, tissue, or cellular- or tissue-based products (HCTP), as specified, and imposes certain regulatory duties relating to HCTP upon the federal Food and Drug Administration (FDA). Existing state law requires the State Department of Public Health to license and regulate tissue banks, which process, store, or distribute human tissue for transplantation into human beings. Existing law generally requires every tissue bank operating in this state to have a current and valid tissue bank license issued or renewed by the department, but exempts certain activities from that requirement, including the storage of HCTP by a licensed physician or podiatrist, as specified, if the products were obtained from a California-licensed tissue bank, stored in strict accordance with manufacturer instructions, and used solely for the express purpose of direct implantation into or application on the practitioner’s own patient, among other criteria. This bill would create an additional exemption from the tissue bank licensing requirement for the storage of allograft tissue by a person if that person is a hospital or outpatient setting, the person maintains a log including specified information pertaining to the allograft tissue, and the allograft tissue meets specified requirements, including, among other things, that the allograft tissue was obtained from a California-licensed tissue bank, is individually boxed and labeled with a unique identification number and expiration date, and is intended for the express purpose of implantation into or application on a patient.

An act to amend Section 1635.1 of the Health and Safety Code, relating to tissue banks.


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

SECTION 1.
Section 2281 of the Corporations Code is amended to read:
2281.
As used in this chapter:
(a) “Agent” means a person who was an officer or director of a corporation, as defined in subdivision (e), at the time the fraudulent acts occurred, was named in a final criminal restitution order in connection with the fraudulent acts, and was acting in the person’s capacity as the corporation’s officer or director when committing the fraudulent acts.
(b) “Application” means a request for payment from the fund submitted to the Secretary of State pursuant to this chapter.
(c) “Claimant” means an aggrieved person who resides in the state at the time of the fraud and who submits an application pursuant to this chapter.
(d) “Complaint,” for the purpose of an application based on a criminal restitution order, means the facts of the underlying transaction or transactions upon which the criminal restitution order is based.
(e) “Corporation” means a domestic corporation as defined by Section 162 or 2509 or a foreign corporation that is qualified to transact business in California pursuant to Section 2105.
(f) “Court of competent jurisdiction” means a state or federal court situated in California.
(g) “Final judgment” means a judgment, arbitration award, or criminal restitution order for which appeals have been exhausted or for which the period for appeal has expired, enforcement of which is not barred by the order of any court or by any statutory provision, which has not been nullified or rendered void by any court order or statutory provision, and for which the claimant has not otherwise been fully reimbursed. The following are examples of final judgments:
(1) A civil judgment that has been entered against a corporation for fraud, misrepresentation, or deceit, with the intent to defraud, and includes findings of facts and conclusions of law.
(2) If the matter was submitted to arbitration, a copy of the arbitration decision and any other documentation supporting the arbitration award. An arbitration award against a corporation for conduct constituting fraud, misrepresentation, or deceit, with the intent to defraud, that includes findings of fact and conclusions of law rendered in accordance with the rules established by the American Arbitration Association or another recognized arbitration body, and in accordance with Sections 1280 to 1294.2, inclusive, of the Code of Civil Procedure where applicable, and where the arbitration award has been confirmed and reduced to judgment pursuant to Section 1287.4 of the Code of Civil Procedure.
(3) A criminal restitution order issued by a court of competent jurisdiction against a corporation, or an agent of the corporation, for fraud, misrepresentation, or deceit, with the intent to defraud, pursuant to subdivision (f) of Section 1202.4 of the Penal Code or Section 3663 of Title 18 of the United States Code. An application for payment from the fund that is based on a criminal restitution order shall comply with all of the requirements of this chapter.
(h) “Fund” means the Victims of Corporate Fraud Compensation Fund created by Section 2280.
(i) “Judgment debtor” means a corporation or agent against which a judgment, arbitration award, or criminal restitution order has been entered for conduct constituting intentional fraud.
SEC. 2.
Section 2282 of the Corporations Code is amended to read:
2282.
(a) When an aggrieved person obtains a final judgment in a court of competent jurisdiction against a corporation based upon the corporation’s fraud, misrepresentation, or deceit, made with intent to defraud, or obtains a criminal restitution order against an agent based upon the agent's fraud, misrepresentation, or deceit, made with intent to defraud while acting in the agent’s capacity as the corporation’s officer or director, the aggrieved person may, upon the judgment becoming final and after diligent collection efforts are made, file an application with the Secretary of State for payment from the fund, within the limitations specified in Section 2289, for the amount unpaid on the judgment that represents the awarded actual and direct loss, any awarded compensatory damages, and awarded costs to the claimant in the final judgment, excluding punitive damages.
(b) The application shall be delivered in person or by certified mail to the Secretary of State not later than 18 months after the judgment has become final.
(c) The application shall be made on a form prescribed by the Secretary of State and shall include each of the following:
(1) The name and address of the claimant.
(2) If the claimant is represented by an attorney for the application, the name, business address, and telephone number of the attorney. If the claimant is not represented by an attorney for the application, a telephone number where the claimant can be reached during regular business hours shall be included.
(3) The name and address of the corporation and the agent, if any.
(4) The identification of the final judgment, the amount of the claim that remains unreimbursed from any source, and an explanation of the claim’s computation.
(5) A copy of a final judgment and a copy of the civil complaint and any amendments thereto upon which the judgment finding fraud, misrepresentation, or deceit, made with the intent to defraud, was made shall be deemed to satisfy compliance with the requirements prescribed in this paragraph. The claimant may also provide any additional documentation that he or she believes may help the Secretary of State in evaluating the application, including, but not limited to, evidence submitted to the court in the underlying judgment or a detailed narrative statement of facts in explanation of the allegations of the complaint upon which the underlying judgment is based.
(6) If the final judgment is a criminal restitution order, the claimant shall provide the charging document and the restitution order, and if the defendant is an agent, documentation showing the defendant named in the restitution order is an agent as defined in this chapter.
(7) A description of searches and inquiries conducted by or on behalf of the claimant with respect to the judgment debtor’s assets liable to be sold or applied to satisfaction of the judgment. A court’s determination or finding of the judgment debtor’s insolvency or lack of assets to pay the claimant shall be deemed to satisfy the requirements prescribed in this paragraph.
(8) Each of the following representations by the claimant:
(A) That the claimant is not a spouse, registered domestic partner, or an immediate family member of an employee, officer, director, managing agent, or other principal of the corporation nor a personal representative of the spouse or an immediate family member of an employee, officer, director, managing agent, or other principal of the corporation.
(B) That the claimant has complied with all of the requirements of this section.
(C) That the judgment underlying the claim meets the requirements of subdivisions (a) and (b) of Section 2282, including all of the following:
(i) That the judgment was for fraud, misrepresentation, or deceit by the corporation or the agent of the corporation, with the intent to defraud.
(ii) That the judgment is unpaid in part or in whole.
(iii) That the underlying judgment and debt have not been discharged in bankruptcy, or the underlying judgment is statutorily nondischargeable, or, in the case of a bankruptcy proceeding that is open at or after the time of the filing of the application, that the judgment and debt have been declared to be nondischargeable by the judge or stipulated as nondischargeable by the parties in the proceeding and that the claimant has been granted permission by the bankruptcy court to proceed with collection or otherwise proceed with the claimant’s claims against the judgment debtor or debtors.
(D) That the claimant does not have a pending claim and has not collected on the final judgment from any other restitution fund. If the claimant has a pending claim or has collected from another fund, a description of the nature of the pending claim and the recovery amounts from any restitution fund.
(d) (1)  Except as provided in paragraphs (2), (3), and (4) the Secretary of State shall not condition an award of payment from the fund upon a claimant providing any additional information or documents other than those prescribed in subdivision (c).
(2) If the final judgment in favor of the claimant was by default, stipulated, a consent judgment, or pursuant to Section 594 of the Code of Civil Procedure or if the action against the corporation or its agent was defended by a trustee in bankruptcy, the Secretary of State may request additional documents and information from the claimant to determine whether the claim is valid.
(3) If the final judgment does not expressly set forth the amount of damages that were awarded for actual loss and compensatory damages that are payable from the fund pursuant to Section 2289, the Secretary of State may ask the claimant to provide copies of documentation pertaining to the amount of the actual and direct loss and the awarded compensatory damages or both of those findings. For purposes of this section, “sufficient proof of money damages” may include any of the following: copies of bank account statements showing or confirming particular transactions, copies of the front and back of checks made payable to the corporation that have been negotiated, credit card statements showing or confirming particular transactions, or similar documentation demonstrating financial loss directly resulting from the fraudulent acts by the corporation or its agent and the amount of compensatory damages awarded by the court.
(4) If there is no court determination or finding of the insolvency of the judgment debtor or lack of assets to pay the claimant, the Secretary of State may request additional information and documentation from the claimant to determine what assets, if any, are available to satisfy the final judgment.
(e) The Secretary of State shall include with the application form a notice to the claimant of his or her obligation to protect the underlying judgment from discharge in bankruptcy, to be appended to the application.
(f) If a claimant is a spouse, registered domestic partner, or an immediate family member of an employee, officer, director, managing agent, or other principal of the corporation, or is a personal representative of the spouse, registered domestic partner, or an immediate family member of an employee, officer, director, managing agent, or other principal of the corporation, the claimant shall not be precluded for that reason alone from receiving an award where the claimant can otherwise meet the requirements of this section.
SEC. 3.
Section 2282.1 of the Corporations Code is amended to read:
2282.1.
(a) The Secretary of State shall provide notice to the corporation and all agents named in the application that a claimant has submitted an application for payment from the fund and shall also provide within that notice, as prescribed by the Secretary of State, the method to contest the payment from the fund.
(b) The notice to the corporation shall be provided by certified mail addressed to the corporation’s last designated agent for service of process of record with the Secretary of State and notice shall be deemed complete five calendar days after the notice is mailed.
(c) If the corporation or its agent wishes to contest payment of an application by the Secretary of State, the corporation or agent shall mail or deliver a written response addressed to the Secretary of State within 30 calendar days of the notice of the application, and shall mail or deliver a copy of the response to the claimant. The written response of the corporation or agent shall not be directed to issues and facts conclusively established by the underlying judgment. If the corporation fails to mail or deliver a timely response, the corporation shall have waived the corporation’s right to present objections to payment of the application, and shall not thereafter be entitled to notice of any action taken or proposed to be taken by the Secretary of State with respect to the application.
SEC. 4.
Section 2286 of the Corporations Code is amended to read:
2286.
The Secretary of State shall give notice, as prescribed by the Secretary of State, to the corporation and all agents named in the application that the Secretary of State has made a decision to award funds to the claimant and shall provide a copy of the decision to the corporation and all agents named in the application.
SEC. 5.
Section 2288 of the Corporations Code is amended to read:
2288.
(a) Whenever the court proceeds upon a petition under Section 2287, it shall order payment out of the fund only upon a determination that the aggrieved party has a valid cause of action within the purview of Section 2282, and has complied with Section 2287.
(b) (1) The Secretary of State may defend any action on behalf of the fund and shall have recourse to all appropriate means of defense and review, including examination of witnesses and the right to relitigate any issues that are material and relevant in the proceeding against the fund. The claimant’s judgment shall create a rebuttable presumption of the fraud, misrepresentation, or deceit by the corporation, which presumption shall affect the burden of producing evidence.
(2) If the civil judgment, arbitration award, or criminal restitution order in the underlying action on which the final judgment in favor of the petitioner was by default, stipulation, consent, or pursuant to Section 594 of the Code of Civil Procedure, or if the action against the corporation or its agent was defended by a trustee in bankruptcy, the petitioner shall have the burden of proving that the cause of action against the corporation or its agent was for fraud, misrepresentation, or deceit.
(c) If the final judgment is a criminal restitution order against an agent, the petitioner shall have the burden of proving that the defendant named in the criminal restitution order qualifies as an agent as defined in this chapter. An active corporation, that has submitted a response to the application pursuant to Section 2282.2, may be permitted by the court to appear in the action regarding the sole issue of whether the defendant named in the criminal restitution order qualifies as its agent as defined in this chapter.
(d) The Secretary of State may move the court at any time to dismiss the petition when it appears there are no triable issues and the petition is without merit. The motion may be supported by affidavit of any person or persons having knowledge of the facts, and may be made on the basis that the petition, and the judgment referred to therein, does not form the basis for a meritorious recovery claim within the purview of Section 2282; provided, however, the Secretary of State shall give written notice at least 10 calendar days before hearing on the motion to the claimant.
SEC. 6.
Section 2289 of the Corporations Code is amended to read:
2289.
(a) Notwithstanding any other provision of this chapter and regardless of the number of persons aggrieved in an instance of corporate fraud, or misrepresentation or deceit resulting in a judgment meeting the requirements of Section 2282, or the number of judgments against a corporation or its agent, the liability of the fund shall not exceed fifty thousand dollars ($50,000) for any one claimant per single judgment finding fraud, misrepresentation, or deceit, made with the intent to defraud.
(b) When multiple corporations or their agents are involved in the same event or series of events that are the basis of the claimant’s final judgment and the conduct of two or more of the corporations or their agents results in a judgment meeting the requirements of Section 2282, the claimant may seek recovery from the fund based on the judgment against any one of the corporations or their agents, subject to the limitations of subdivision (a).
(c) When multiple claimants are involved in a corporate fraud, or in misrepresentation or deceit by a corporation or its agents, resulting in a judgment meeting the requirements of Section 2282, each claimant may seek recovery from the fund individually, subject to the limitations of subdivision (a).
(d) Claimants who are spouses, registered domestic partners, or persons other than natural persons, that have obtained an eligible final judgment shall be considered one claimant.
SEC. 7.
Section 2290 of the Corporations Code is amended to read:
2290.
If, at any time, the money deposited in the fund is insufficient to satisfy any duly authorized award or offer of settlement, the Secretary of State shall, when sufficient money has been deposited in the fund, satisfy the unpaid awards or offer of settlement, in the order that the awards or offers of settlement were originally filed.
SEC. 8.
Section 2293.1 of the Corporations Code is amended to read:
2293.1.
If the Secretary of State pays from the fund any amount in settlement of a claim or toward satisfaction of a final judgment against a corporation or its agent, the corporation or its agent shall be required to pay to the fund the amount paid plus interest at the prevailing legal rate applicable to a judgment rendered in any court of this state, within 30 calendar days of the date that the Secretary of State provided notice of the payment of the award or compromise. If the corporation or its agent fails to make the required payment to the fund within the required time, the corporation shall be suspended until the payment is made. A discharge in bankruptcy shall not relieve a corporation or its agent from the penalties and disabilities provided in this chapter.
SEC. 9.
Section 2294 of the Corporations Code is amended to read:
2294.
The Secretary of State shall not make any award to a claimant from the fund if the claimant has received payment from any other restitution funds or for the portions of the judgment that the claimant has collected from the corporation or its agent or any other defendant in the underlying judgment.
SEC. 10.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

Summary: Existing law establishes the Victims of Corporate Fraud Compensation Fund, a continuously appropriated fund, within the State Treasury administered by the Secretary of State, the sole purpose of which is to provide restitution to victims of corporate fraud. Existing law provides that an aggrieved person who obtains a final judgment, as specified, against a corporation based upon the corporation’s fraud, misrepresentation, or deceit, made with intent to defraud, may file an application with the Secretary of State for payment from the fund for the amount unpaid on the judgment that represents the awarded actual and direct loss to the claimant in the final judgment. This bill would additionally apply those provisions if an aggrieved person obtains a criminal restitution order against an agent, as defined, of a corporation based upon those same circumstances. The bill would also make conforming changes. By allowing for additional payments to be made from the Victims of Corporate Fraud Compensation Fund, this bill would make an appropriation. Existing law requires the application filed with the Secretary of State to include specified information and documentation, and imposes criminal penalties for the filing of any documents that are false or untrue or contain any willful, material misstatements of fact. This bill would require, if the final judgment is a criminal restitution order, the claimant to provide the charging document and the restitution order, and if the defendant is an agent, documentation showing the defendant named in the restitution order is an agent as defined in this bill. By expanding the scope of a crime, this bill would impose a state-mandated local program. Existing law requires, if, at any time, the money deposited in the Victims of Corporate Fraud Compensation Fund is insufficient to satisfy any duly authorized award or offer of settlement, the Secretary of State to, when sufficient money has been deposited in the fund, satisfy the unpaid award or offer of settlement, plus specified accumulated interest. This bill would eliminate the requirement to pay that specified accumulated interest. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

An act to amend Sections 2281, 2282, 2282.1, 2286, 2288, 2289, 2290, 2293.1, and 2294 of the Corporations Code, relating to fraud, and making an appropriation therefor.


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

SECTION 1.
The Legislature finds and declares all of the following:
(a) That service animals are a special class of animals uniquely deserving of protections and accommodations in law, and are already clearly defined in California law and in federal law.
(b) That so-called “support,” “companion,” or “emotional support” animals are not clearly defined in law, and their appropriate use in the context of rental housing requires clarification.
(c) That it is beneficial to supply additional guidance to both landlords and tenants as to appropriate conditions regarding support animals that may be included within a residential lease.
(d) That this act is intended to supply identifying criteria for support animals and to distinguish them from service animals and from other pets and to ensure that support animals are not barred from a tenancy by a “no pets” policy.
SEC. 2.
Section 1941.7 is added to the Civil Code, to read:
1941.7.
(a) A residential lease may require a tenant who possesses a support animal on the rented premises or associated common areas to be subject to the following conditions:
(1) That the tenant notify, and receive approval from, the landlord prior to bringing the support animal on the rented premises or associated common areas.
(2) That the support animal be housebroken.
(3) That the support animal not disturb the quiet enjoyment of the premises by other tenants or pose a threat to other tenants or their property.
(4) That the presence of the animal not jeopardize the availability or price of insurance.
(b) If a tenant or prospective tenant satisfies the conditions specified in subdivision (a), the tenant or prospective tenant shall not be prohibited from possessing a support animal on the rented premises or associated common areas.
(c) If a residential lease contains the conditions described in subdivision (a), a breach of any one of the conditions constitutes a breach of the lease.
(d) This section shall not affect either of the following:
(1) The amount of, or ability to pursue, a security deposit, including a pet deposit, under any law.
(2) The ability or rights under any law to possess a service animal.
(e) For purposes of this section, all of the following shall apply:
(1) “Prescribed” has the same meaning as the term “prescription” as that term is defined by Section 4040 of the Business and Professions Code.
(2) “Service animal” includes any of the following:
(A) A “guide dog” as defined by clause (i) of subparagraph (C) of paragraph (6) of subdivision (b) of Section 54.1.
(B) A “signal dog” as defined by clause (ii) of subparagraph (C) of paragraph (6) of subdivision (b) of Section 54.1.
(C) A “service dog” as defined by clause (iii) of subparagraph (C) of paragraph (6) of subdivision (b) of Section 54.1.
(D) A “service animal” as defined by Section 113903 of the Health and Safety Code.
(3) “Support animal” means a support dog, companion animal, emotional support animal, or assistive animal that is prescribed by a California licensed physician or licensed mental health professional in order to treat a mental or emotional illness or mental or emotional disability. A support animal does not include a service animal.
SECTION 1.
Section 1941.7 is added to the
Civil Code
, to read:
1941.7.
(a)A tenant may maintain a support animal on the property if both of the following conditions are met:
(1)The tenant has obtained a prescription validating the need for the support animal from a California–licensed mental health care professional that may be verified by the landlord.
(2)The tenant complies with all federal, state, and local requirements, including, but not limited to, local licensing requirements and limitations on the number of animals maintained on the property.
(b)A tenancy may be terminated or a tenant may be denied accommodations on the property for having a support animal if any of the following apply:
(1)The support animal was brought on the property without notice to the landlord.
(2)The support animal is not house broken.
(3)The support animal creates a financial hardship on the real property owner.
(4)The support animal jeopardizes the availability of property insurance.
(5)The support animal poses a threat to other tenants or the property.
(c)The landlord may do both of the following:
(1)Require tenants with support animals to adhere to all standards that are imposed uniformly on all tenants.
(2)Include the payment of an extra charge or security deposit for maintaining a support animal on the property.
(d)A tenant shall not maintain any state or federally protected species, venomous reptiles, amphibians or insects, or any other illegal species as a support animal.
(e)For purposes of this section, both of the following definitions shall apply:
(1)“Prescription” has the same meaning as that term is defined in Section 4040 of Business and Professions Code.
(2)“Support animal” includes a support dog, companion animal, emotional support animal, or assistive animal. A support animal does not include a guide dog, signal dog, or service dog as defined in subparagraph (C) of paragraph (6) of subdivision (b) of Section 54.1.
SEC. 2.
Section 30851 of the
Food and Agricultural Code
is amended to read:
30851.
(a)The owners of assistance dogs and support animals shall comply with all state and local ordinances regarding health and licensure requirements.
(b)For purposes of this section, “support animal” has the same meaning as that term is defined in Section 1941.7 of the Civil Code.

Summary: Existing law regulates the relationship between landlord and tenant and the terms and conditions of tenancies. This bill would authorize a tenant to maintain a support animal, as defined, on the property if specified conditions are met. This bill would authorize a tenancy to be terminated or a tenant to be denied accommodations on the property for having a support animal if specified conditions apply. This bill would authorize the landlord to require tenants with support animals to adhere to all standards that are imposed uniformly on all tenants and to include the payment of an extra charge or security deposit for maintaining a support animal on the property. This bill would prohibit a tenant from maintaining any protected species, venomous reptiles, amphibians or insects, or any other illegal species as a support animal. Existing law requires the owners of assistance dogs to comply with all state and local ordinances regarding health and licensure requirements. This bill would expand that requirement by also making it applicable to support animals. This bill would authorize a residential lease to require a tenant who possesses a support animal, as defined, on the rented premises or associated common areas to be subject to specified conditions, and would require a breach of these conditions, if contained in the lease, to be a breach of the lease. The bill would provide that a tenant or prospective tenant shall not be prohibited from possessing a support animal on the rented premises or associated common areas if the tenant or prospective tenant satisfies specified conditions.

An act to add Section 1941.7 to the Civil
Code, and to amend Section 30851 of the Food and Agricultural
Code, relating to support animals.


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

SECTION 1.
The Legislature finds and declares all of the following:
(a) Commute patterns throughout northern California, and in particular through the Altamont Pass corridor, traverse the boundaries of traditional metropolitan planning agencies. The Altamont Pass corridor, located in the center of northern California’s megaregion, is the gateway to the Tri—Valley—a vital node in the bay area’s economic ecosystem and a key bay area transportation route. Strategic and planned interregional mobility is essential to sustained economic vitality.
(b) Connecting the Bay Area Rapid Transit District’s rapid transit system and the Altamont Corridor Express in Livermore, as recommended by the Metropolitan Transportation Commission’s regional rail plan, would increase interregional mobility, providing much-needed highway capacity for expanded goods movement to the bay area’s five seaports. It would also relieve pressure on Interstate 580 and other transportation systems, given the exponential population growth in the central valley.
(c) The Bay Area Rapid Transit District has stated its priority is to operate and maintain its existing core commuter rail system; expansion is not a priority for the Bay Area Rapid Transit District. Recent rail expansions in other parts of the state have been successfully implemented by single purpose agencies such as the Metro Gold Line Foothill Extension Construction Authority and the Santa Clara Valley Transportation Authority.
(d) The Altamont Pass Regional Rail Authority is needed to connect the Bay Area Rapid Transit District’s rapid transit system and the Altamont Corridor Express in Tri-Valley and would be responsive to local needs and issues by including local stakeholders in land use and transit planning decisions.
(e) Consistent with the Bay Area Regional Rail Plan adopted by the Metropolitan Transportation Commission (Resolution 3826), the heavy rail connection between the Bay Area Rapid Transit District’s rapid transit system and the Altamont Corridor Express is a matter of state interest, and all planning, analysis, alternatives, and mitigations for projects undertaken by the Altamont Pass Regional Rail Authority should be consistent with that state interest.
SEC. 2.
It is the intent of the Legislature to establish the Altamont Pass Regional Rail Authority to plan and deliver a cost effective and responsive rail extension that connects the Bay Area Rapid Transit District’s rapid transit system and the Altamont Corridor Express in the Tri-Valley, within the City of Livermore, to address regional economic and transportation challenges.
SEC. 3.
Chapter 8 (commencing with Section 132651) is added to Division 12.7 of the Public Utilities Code, to read:
CHAPTER  8. Altamont Pass Regional Rail Authority
132651.
As used in this chapter, the following terms have the following meanings:
(a) “Authority” means the Altamont Pass Regional Rail Authority created under this chapter.
(b) “Bay Area Rapid Transit” means the Bay Area Rapid Transit District’s rapid transit system.
(c) “Board” means the governing board of the authority.
(d) “Connection” means an interregional rail connection between Bay Area Rapid Transit and the Altamont Corridor Express in the Tri-Valley, within the City of Livermore.
(e) “Phase 1 Project” means the first phase of the connection, which will extend Bay Area Rapid Transit along Interstate 580 to a new station in the vicinity of the Isabel Avenue interchange in the City of Livermore.
132652.
The authority is hereby established for purposes of planning and delivering a cost-effective and responsive connection that meets the goals and objectives of the community.
132653.
By December 1, 2017, the board shall publish a detailed management, finance, and implementation plan relating to the connection.
132655.
The governing board of the authority shall be composed of one representative from each of the following entities to be appointed by the governing board, mayor, or supervisor of each entity:
(a) The Altamont Corridor Express.
(b) The Bay Area Rapid Transit District.
(c) The City of Dublin.
(d) The City of Livermore.
(e) The City of Pleasanton.
(f) The City of Tracy.
(g) The County of Alameda.
(h) The County of San Joaquin.
(i) The East Bay Leadership Council.
(j) Innovation Tri-Valley.
(k) The Livermore Amador Valley Transit Authority.
(l) San Joaquin Partnership.
132660.
(a) The board may appoint an executive director to serve at the pleasure of the board.
(b) The executive director is exempt from all civil service laws and shall be paid a salary established by the board.
(c) The executive director may appoint staff or retain consultants as necessary to carry out the duties of the authority.
(d) All contracts approved and awarded by the executive director shall be awarded in accordance with state and federal laws relating to procurement. Awards shall be based on price or competitive negotiation, or on both of those things.
132665.
The Livermore Amador Valley Transit Authority shall enter into a memorandum of understanding with the San Joaquin Regional Rail Commission to comanage the rail-specific elements necessary to support the authority. For an initial one-year period, the Livermore Amador Valley Transit Authority’s administrative staff shall, if that authority has appointed a member to the board in accordance with Section 132655, provide all necessary administrative support to the board to perform its duties and responsibilities and may perform for the board any and all activities that they are authorized to perform for the Livermore Amador Valley Transit Authority. At the conclusion of the initial period, the board may, through procedures that it determines, select the Livermore Amador Valley Transit Authority, San Joaquin Regional Rail Commission, or another existing public rail transit agency for one three-year term immediately following the initial period, and thereafter for five-year terms, to provide all necessary administrative support staff to the board to perform its duties and responsibilities.
132670.
The Bay Area Rapid Transit District shall identify and expeditiously enter into an agreement with the authority to hold in trust for the authority all real and personal property and any other assets accumulated in the planning, environmental review, design, right-of-way acquisition, permitting, and construction of the connection, including, but not limited to, rights-of-way, documents, interim work products, studies, third-party agreements, contracts, and design documents, as necessary for completion of the connection.
132675.
All unencumbered moneys dedicated for the completion of the Phase 1 Project or the connection shall be transferred to the authority for the completion of the connection.
132680.
The authority shall not be responsible for any core system upgrades that preexist its establishment. This includes both existing core system deficiencies necessary to support planned service frequency upgrades and any core system upgrades needed to support prior system expansions, including, but not limited to, the Silicon Valley rapid transit corridor.
132685.
Upon the completion of the connection or any phase of the connection, the Bay Area Rapid Transit District shall assume ownership of all physical improvements constructed for that phase or the connection, and shall assume operational control, maintenance responsibilities, and related financial obligations of the phase or connection.
132690.
(a) The authority has all of the powers necessary for planning, acquiring, leasing, developing, jointly developing, owning, controlling, using, jointly using, disposing of, designing, procuring, and building the Phase 1 Project and connection, including, but not limited to, all of the following:
(1) Acceptance of grants, fees, allocations, and transfers of moneys from federal, state, and local agencies, including, but not limited to, moneys from local measures, as well as private entities.
(2) Acquiring, through purchase or through eminent domain proceedings, any property necessary for, incidental to, or convenient for, the exercise of the powers of the authority.
(3) Incurring indebtedness, secured by pledges of revenue available for the Phase 1 Project or connection completion.
(4) Contracting with public and private entities for the planning, design, and construction of the connection. These contracts may be assigned separately or may be combined to include any or all tasks necessary for completion of the Phase 1 Project or connection.
(5) Entering into cooperative or joint development agreements with local governments or private entities. These agreements may be entered into for purposes of sharing costs, selling or leasing land, air, or development rights, providing for the transferring of passengers, making pooling arrangements, or for any other purpose that is necessary for, incidental to, or convenient for the full exercise of the powers granted to the authority. For purposes of this paragraph, “joint development” includes, but is not limited to, an agreement with any person, firm, corporation, association, or organization for the operation of facilities or development of projects adjacent to, or physically or functionally related to, the Phase 1 Project or connection.
(6) Relocation of utilities, as necessary for completion of the connection.
(7) Conducting all necessary environmental reviews, including, but not limited to, completing environmental impact reports.
(b) The duties of the authority include, but are not limited to, both of the following:
(1) Conducting the financial studies and the planning and engineering necessary for completion of the Phase 1 Project and connection. Although this duty rests solely on the authority, the authority may exercise any of the powers described in subdivision (a) to fulfill this duty.
(2) Adoption of an administrative code, not later than December 1, 2017, for administration of the authority in accordance with any applicable laws, including, but not limited to, the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), the provisions of this chapter, laws generally applicable to local agency procurement and contracts, laws relating to contracting goals for minority and women business participation, and the Political Reform Act of 1974 (Title 9 (commencing with Section 81000) of the Government Code).
132694.
The authority shall enter into a memorandum of understanding with the Bay Area Rapid Transit District that shall address the ability of the Bay Area Rapid Transit District to review any significant changes in the scope of the design or construction, or both design and construction, of the Phase 1 Project and connection.
132695.
The Department of Transportation shall expedite reviews and requests related to the Phase 1 Project or connection and shall provide responses within 60 days.
132697.
On or before December 1, 2017, and annually thereafter, the authority shall provide a project update report to the public, to be posted on the authority’s Internet Web site, on the development and implementation of the Phase 1 Project and connection. The report, at a minimum, shall include a project summary, as well as details by phase, with all information necessary to clearly describe the status of the phase, including, but not limited to, all of the following:
(a) A summary describing the overall progress of the phase.
(b) The baseline budget for all phase costs, by segment or contract.
(c) The current and projected budget, by segment or contract, for all phase costs.
(d) Expenditures to date, by segment or contract, for all phase costs.
(e) A summary of milestones achieved during the prior year and milestones expected to be reached in the coming year.
(f) Any issues identified during the prior year and actions taken to address those issues.
(g) A thorough discussion of risks to the project and steps taken to mitigate those risks.
132699.
The authority shall be dissolved upon both the completion of the connection and the assumption by Bay Area Rapid Transit District of operational control of the connection as provided in Section 132685.
SEC. 4.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SECTION 1.
Section 30814 of the
Streets and Highways Code
is amended to read:
30814.
(a)No toll shall be imposed on the passage of a pedestrian or bicycle over any bridge that is part of the state highway system, on which the travel of pedestrians and bicycles is otherwise authorized, and on which tolls are imposed on the passage of motor vehicles, including any bridge constructed pursuant to a franchise granted under this article.
(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: Existing law provides for the creation of statewide and local transportation agencies, which may be established as joint powers authorities or established expressly by statute. Existing law establishes the Bay Area Rapid Transit District, which is authorized to acquire, construct, own, operate, control, or use rights-of-way, rail lines, bus lines, stations, platforms, switches, yards, terminals, parking lots, and any and all other facilities necessary or convenient for rapid transit service. This bill would establish the Altamont Pass Regional Rail Authority for purposes of planning and delivering a cost effective and responsive interregional rail connection between the Bay Area Rapid Transit District’s rapid transit system and the Altamont Corridor Express in the Tri-Valley, within the City of Livermore, that meets the goals and objectives of the community. The bill would require the authority’s governing board to be composed of 12 representatives and would authorize the authority to appoint an executive who may appoint staff or retain consultants. The bill would provide specified authorizations and duties to the authority. This bill would require all unencumbered moneys dedicated for the completion of the connection to be transferred to the authority. The bill would require the Bay Area Rapid Transit District to assume ownership of all physical improvements, and to assume operational control, maintenance responsibilities, and related financial obligations for the connection, upon its completion. The bill would require the Department of Transportation to expedite reviews and requests related to the connection. The bill would require the authority to provide a project update report to the public, to be posted on the authority’s Internet Web site, on the development and implementation of the connection. By imposing new duties on local governmental entities, this bill would create a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. Existing law, until January 1, 2021, prohibits a toll from being imposed on the passage of a pedestrian or bicycle over any bridge that is part of the state highway system, as specified. This bill would extend that prohibition until January 1, 2022.

An act to amend Section 30814 of the Streets and Highways Code, relating to transportation.
An act to add Chapter 8 (commencing with Section 132651) to Division 12.7 of the Public Utilities Code, relating to transportation.


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

SECTION 1.
Section 1170.18 of the Penal Code is amended to read:
1170.18.
(a) A person who, on November 5, 2014, was serving a sentence for a conviction, whether by trial or plea, of a felony or felonies who would have been guilty of a misdemeanor under the act that added this section (“this act”) had this act been in effect at the time of the offense may petition for a recall of sentence before the trial court that entered the judgment of conviction in his or her case to request resentencing in accordance with Sections 11350, 11357, or 11377 of the Health and Safety Code, or Section 459.5, 473, 476a, 490.2, 496, or 666 of the Penal Code, as those sections have been amended or added by this act.
(b) Upon receiving a petition under subdivision (a), the court shall determine whether the petitioner satisfies the criteria in subdivision (a). If the petitioner satisfies the criteria in subdivision (a), the petitioner’s felony sentence shall be recalled and the petitioner resentenced to a misdemeanor pursuant to Sections 11350, 11357, or 11377 of the Health and Safety Code, or Section 459.5, 473, 476a, 490.2, 496, or 666 of the Penal Code, as those sections have been amended or added by this act, unless the court, in its discretion, determines that resentencing the petitioner would pose an unreasonable risk of danger to public safety. In exercising its discretion, the court may consider all of the following:
(1) The petitioner’s criminal conviction history, including the type of crimes committed, the extent of injury to victims, the length of prior prison commitments, and the remoteness of the crimes.
(2) The petitioner’s disciplinary record and record of rehabilitation while incarcerated.
(3) Any other evidence the court, within its discretion, determines to be relevant in deciding whether a new sentence would result in an unreasonable risk of danger to public safety.
(c) As used throughout this Code, “unreasonable risk of danger to public safety” means an unreasonable risk that the petitioner will commit a new violent felony within the meaning of clause (iv) of subparagraph (C) of paragraph (2) of subdivision (e) of Section 667.
(d) A person who is resentenced pursuant to subdivision (b) shall be given credit for time served and shall be subject to parole for one year following completion of his or her sentence, unless the court, in its discretion, as part of its resentencing order, releases the person from parole. Such person is subject to Section 3000.08 parole supervision by the Department of Corrections and Rehabilitation and the jurisdiction of the court in the county in which the parolee is released or resides, or in which an alleged violation of supervision has occurred, for the purpose of hearing petitions to revoke parole and impose a term of custody.
(e) Under no circumstances may resentencing under this section result in the imposition of a term longer than the original sentence.
(f) A person who has completed his or her sentence for a conviction, whether by trial or plea, of a felony or felonies who would have been guilty of a misdemeanor under this act had this act been in effect at the time of the offense, may file an application before the trial court that entered the judgment of conviction in his or her case to have the felony conviction or convictions designated as misdemeanors.
(g) If the application satisfies the criteria in subdivision (f ), the court shall designate the felony offense or offenses as a misdemeanor.
(h) Unless requested by the applicant, no hearing is necessary to grant or deny an application filed under subsection (f ).
(i) The provisions of this section shall not apply to persons who have one or more prior convictions for an offense specified in clause (iv) of subparagraph (C) of paragraph (2) of subdivision (e) of Section 667 or for an offense requiring registration pursuant to subdivision (c) of Section 290.
(j) Any petition or application under this section shall be filed on or before November 4, 2022, or at a later date upon showing of good cause.
(k) Any felony conviction that is recalled and resentenced under subdivision (b) or designated as a misdemeanor under subdivision (g) shall be considered a misdemeanor for all purposes, except that such resentencing shall not permit that person to own, possess, or have in his or her custody or control any firearm or prevent his or her conviction under Chapter 2 (commencing with Section 29800) of Division 9 of Title 4 of Part 6.
(l) If the court that originally sentenced the petitioner is not available, the presiding judge shall designate another judge to rule on the petition or application.
(m) Nothing in this section is intended to diminish or abrogate any rights or remedies otherwise available to the petitioner or applicant.
(n) Nothing in this and related sections is intended to diminish or abrogate the finality of judgments in any case not falling within the purview of this act.
(o) A resentencing hearing ordered under this act shall constitute a “post‑conviction release proceeding” under paragraph (7) of subdivision (b) of Section 28 of Article I of the California Constitution (Marsy’s Law).

Summary: Existing law, the Safe Neighborhoods and Schools Act, enacted by Proposition 47, as approved by the voters at the November 4, 2014, statewide general election, reduced the penalties for various crimes. Under the provisions of the act, a person currently convicted of a felony or felonies who would have been guilty of a misdemeanor under the act if the act had been in effect at the time of the conviction may petition or apply to have the sentence reduced in accordance with the act. That act requires that this petition or application be filed before November 4, 2017, or at a later date upon a showing of good cause. Proposition 47 authorizes its provisions to be amended by a statute that is consistent with and furthers its intent and that is passed by a 23 vote of each house of the Legislature and is signed by the Governor. Proposition 47 also provides that the Legislature may, by majority vote, amend, add, or repeal provisions to further reduce the penalties for offenses it addresses. This bill would instead authorize a person to petition or apply for a reduction of sentence before November 4, 2022, or at a later date upon a showing of good cause. Because the bill would extend the period of time in which a person could file a petition or application without a showing of good cause, the bill would amend the act and would require a 23 vote of the Legislature.

An act to amend Section 1170.18 of the Penal Code, relating to sentencing.


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

SECTION 1.
Section 69510 of the Education Code is amended to read:
69510.
The Student Aid Commission shall be composed of the following 17 members:
(a) One representative from public, proprietary, or nonprofit postsecondary schools located in California.
(b) One representative from a California independent college or university.
(c) One representative each from the University of California, the California State University, and the California Community Colleges.
(d) (1) Four student members, one from each of the following postsecondary educational institutions:
(A) The University of California.
(B) The California State University.
(C) The California Community Colleges.
(D) A California private postsecondary educational institution.
(2) A student member described in paragraph (1) shall be enrolled in the postsecondary educational institution at the time of appointment, and shall be enrolled in that institution for the duration of the term. A student member who graduates from an institution with no more than six months of his or her term remaining shall be permitted to serve for the remainder of the term.
(e) Three public members.
(f) One representative from a California secondary school.
(g) Two representatives appointed by the Senate Rules Committee.
(h) Two representatives appointed by the Speaker of the Assembly.
SEC. 2.
Section 69511 of the Education Code is amended to read:
69511.
(a) Except as provided in subdivision (b), each member of the commission shall have a four-year term; provided, that members appointed pursuant to subdivision (d) of Section 69510 shall have terms of two academic years.
(b) The term of one member appointed pursuant to subdivision (g) of Section 69510 and the term of one member appointed pursuant to subdivision (h) of Section 69510, effective January 1, 1991, shall be for five years. Each subsequent term for members appointed pursuant to this subdivision shall be for four years.
(c) Appointment to the commission of members appointed pursuant to subdivisions (a) to (f), inclusive, of Section 69510 shall be made by the Governor subject to confirmation by the Senate.
(d) Any vacancy shall be filled by the appointment of a person who will have the same status as the predecessor of the appointee. The appointee shall hold office only for the balance of the unexpired term.
(e) Each member of the commission shall receive a stipend of one hundred dollars ($100) for each day in which he or she attends any meeting of the commission or any meeting of any committee or subcommittee of the commission, of which committee or subcommittee he or she is a member, and which committee or subcommittee meeting is conducted for the purpose of carrying out the powers and duties of the commission. In addition, each member shall receive his or her actual and necessary traveling expenses incurred in the course of his or her duties.
(f) (1) If an act of Congress establishes a program of scholarships or grants for undergraduate students and permits administration of the program within a state by a state agency, the Student Aid Commission, as established by Section 69510, shall administer the act within the state if the Governor and the Student Aid Commission, by a majority vote of its entire membership, determine that the participation by the state in the federal scholarship or grant program under the act would not interfere with or jeopardize the continuation of the scholarship program established under Chapter 1.7 (commencing with Section 69430) of Part 42 of Division 5 of Title 3.
(2) The commission shall constitute the state commission on federal scholarships or grants and is hereby empowered to formulate a plan for development and administration of any federal scholarship or grant program within the state.
(3) Subject to the provisions of this chapter, the commission is hereby vested with all necessary power and authority to cooperate with the government of the United States, or any agency or agencies thereof, in the administration of any act of Congress establishing a scholarship or grant program and the rules and regulations adopted thereunder.
(4) Before adopting a state plan, the commission, acting as the state commission on federal scholarships or grants, shall hold public hearings as provided in the California Administrative Procedure Act.
SEC. 2.5.
Section 69511 of the Education Code is amended to read:
69511.
(a) (1) Except as provided in subdivision (b), each member of the commission, other than a student member, shall have a four-year term.
(2) (A) A student member appointed pursuant to subdivision (d) of Section 69510 shall have a term of two academic years.
(B) Upon expiration of the student member’s two-year term, if the Governor has not appointed a successor, the student member may remain in office for one additional year or until the Governor appoints a successor, whichever occurs first. The requirements of subdivision (d) of Section 69510 do not apply to a student in the additional year under this paragraph.
(C) The commission shall notify the appropriate student organization for each segment, as described in Section 69511.5, of a pending student member vacancy no less than three months before the expiration of the term, and of the appropriate student organization’s opportunity to submit a list of nominees pursuant to Section 69511.5.
(b) The term of one member appointed pursuant to subdivision (g) of Section 69510 and the term of one member appointed pursuant to subdivision (h) of Section 69510, effective January 1, 1991, shall be for five years. Each subsequent term for members appointed pursuant to this subdivision shall be for four years.
(c) Appointment to the commission of members appointed pursuant to subdivisions (a) to (f), inclusive, of Section 69510 shall be made by the Governor subject to confirmation by the Senate.
(d) Any vacancy shall be filled by the appointment of a person who will have the same status as the predecessor of the appointee. The appointee shall hold office only for the balance of the unexpired term.
(e) (1) Each member of the commission shall receive a stipend of one hundred dollars ($100) for each day in which he or she attends any meeting of the commission or any meeting of any committee or subcommittee of the commission, of which committee or subcommittee he or she is a member, and which committee or subcommittee meeting is conducted for the purpose of carrying out the powers and duties of the commission. In addition, each member shall receive his or her actual and necessary traveling expenses incurred in the course of his or her duties.
(2) In addition, if a student member who attends a qualifying institution, as defined in Section 69432.7, is not the recipient of a Cal Grant award, the qualifying institution, as a condition of participation in the Cal Grant program, shall waive the student member’s tuition, up to the maximum award amount for that institution, for the duration of the student member’s term of office.
(f) (1) If an act of Congress establishes a program of scholarships or grants for undergraduate students and permits administration of the program within a state by a state agency, the Student Aid Commission, as established by Section 69510, shall administer the act within the state if the Governor and the Student Aid Commission, by a majority vote of its entire membership, determine that the participation by the state in the federal scholarship or grant program under the act would not interfere with or jeopardize the continuation of the scholarship program established under Chapter 1.7 (commencing with Section 69430) of Part 42 of Division 5 of Title 3.
(2) The commission shall constitute the state commission on federal scholarships or grants and is hereby empowered to formulate a plan for development and administration of any federal scholarship or grant program within the state.
(3) Subject to the provisions of this chapter, the commission is hereby vested with all necessary power and authority to cooperate with the government of the United States, or any agency or agencies thereof, in the administration of any act of Congress establishing a scholarship or grant program and the rules and regulations adopted thereunder.
(4) Before adopting a state plan, the commission, acting as the state commission on federal scholarships or grants, shall hold public hearings as provided in the California Administrative Procedure Act.
SEC. 3.
Section 69511.5 of the Education Code is amended to read:
69511.5.
(a) Notwithstanding Section 69511, the Governor shall appoint each student member of the Student Aid Commission pursuant to subdivision (d) of Section 69510 from the persons nominated in accordance with the provisions of subdivision (b).
(b) For each student member of the commission, the appropriate student organization may submit a list of nominees. The list shall specify not less than three and not more than five nominees. The appropriate student organization for each segment shall be a composite group of at least five representative student government associations, as determined by the commission.
(c) Participating student organizations designated in subdivision (b) shall inform students within their respective segment of pending student vacancies on the commission.
(d) The person appointed as a student member of the commission pursuant to this section shall be subject to confirmation by the Senate as required in subdivision (c) of Section 69511.
SEC. 4.
Section 2.5 of this bill incorporates amendments to Section 69511 of the Education Code proposed by both this bill and Assembly Bill 2154. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2017, (2) each bill amends Section 69511 of the Education Code, and (3) this bill is enacted after Assembly Bill 2154, in which case Section 2 of this bill shall not become operative.

Summary: Existing law establishes the Student Aid Commission as the primary state agency for the administration of state-authorized student financial aid programs available to students attending all segments of postsecondary education. Existing law requires the commission to include 2 members, appointed by the Governor, who are students enrolled in a California postsecondary educational institution. This bill would instead require the commission to include 4 student members, one from each of the following: the University of California, the California State University, the California Community Colleges, and a California private postsecondary educational institution. The bill would make conforming and nonsubstantive changes. This bill would incorporate additional changes to Section 69511 of the Education Code proposed by AB 2154 that would become operative if this bill and AB 2154 are both enacted and this bill is enacted last.

An act to amend Sections 69510, 69511, and 69511.5 of the Education Code, relating to student financial aid.