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

SECTION 1.
Section 4652.5 of the Welfare and Institutions Code is amended to read:
4652.5.
(a) (1) An entity that receives payments from one or more regional centers shall contract with an independent accounting firm to obtain an independent audit or independent review report of its financial statements relating to payments made by regional centers, subject to both of the following:
(A) If the amount received from the regional center or regional centers during the entity’s fiscal year is more than or equal to five hundred thousand dollars ($500,000), but less than two million dollars ($2,000,000), the entity shall obtain an independent review report of its financial statements for the period. Consistent with Subchapter 21 (commencing with Section 58800) of Chapter 3 of Division 2 of Title 17 of the California Code of Regulations, this subdivision shall also apply to work activity program providers receiving less than five hundred thousand dollars ($500,000).
(B) If the amount received from the regional center or regional centers during the entity’s fiscal year is equal to or more than two million dollars ($2,000,000), the entity shall obtain an independent audit of its financial statements for the period.
(2) This requirement does not apply to payments made using usual and customary rates, as defined by Title 17 of the California Code of Regulations, for services provided by regional centers.
(3) This requirement does not apply to state and local governmental agencies, the University of California, or the California State University.
(b) An entity subject to subdivision (a) shall provide copies of the independent audit or independent review report required by subdivision (a), and accompanying management letters, to the vendoring regional center within nine months of the end of the fiscal year for the entity.
(c) Regional centers that receive the audit or review reports required by subdivision (b) shall review and require resolution by the entity for issues identified in the report that have an impact on regional center services. Regional centers shall take appropriate action, up to termination of vendorization, for lack of adequate resolution of issues.
(d) (1) Regional centers shall notify the department of all qualified opinion reports or reports noting significant issues that directly or indirectly impact regional center services within 30 days after receipt. Notification shall include a plan for resolution of issues.
(2) A regional center shall submit copies of all independent audit reports that it receives to the department for review. The department shall compile data, by regional center, on vendor compliance with audit requirements and opinions resulting from audit reports and shall annually publish the data in the performance dashboard developed pursuant to Section 4572.
(e) For purposes of this section, an independent review of financial statements shall be performed by an independent accounting firm and shall cover, at a minimum, all of the following:
(1) An inquiry as to the entity’s accounting principles and practices and methods used in applying them.
(2) An inquiry as to the entity’s procedures for recording, classifying, and summarizing transactions and accumulating information.
(3) Analytical procedures designed to identify relationships or items that appear to be unusual.
(4) An inquiry about budgetary actions taken at meetings of the board of directors or other comparable meetings.
(5) An inquiry about whether the financial statements have been properly prepared in conformity with generally accepted accounting principles and whether any events subsequent to the date of the financial statements would have a material effect on the statements under review.
(6) Working papers prepared in connection with a review of financial statements describing the items covered as well as any unusual items, including their disposition.
(f) For purposes of this section, an independent review report shall cover, at a minimum, all of the following:
(1) Certification that the review was performed in accordance with standards established by the American Institute of Certified Public Accountants.
(2) Certification that the statements are the representations of management.
(3) Certification that the review consisted of inquiries and analytical procedures that are lesser in scope than those of an audit.
(4) Certification that the accountant is not aware of any material modifications that need to be made to the statements for them to be in conformity with generally accepted accounting principles.
(g) The department shall not consider a request for adjustments to rates submitted in accordance with Title 17 of the California Code of Regulations by an entity receiving payments from one or more regional centers solely to fund either anticipated or unanticipated changes required to comply with this section.
(h) (1) An entity required to obtain an independent review report of its financial statement pursuant to subparagraph (A) of paragraph (1) of subdivision (a) may apply to the regional center for, and the regional center shall grant, a two-year exemption from the independent review report requirement if the regional center does not find issues in the prior year’s independent review report that have an impact on regional center services.
(2) An entity required to obtain an independent audit of its financial statements pursuant to subparagraph (B) of paragraph (1) of subdivision (a) may apply to the regional center for an exemption from the independent audit requirement, subject to both of the following conditions:
(A) If the independent audit for the prior year resulted in an unmodified opinion or an unmodified opinion with additional communication, the regional center shall grant the entity a two-year exemption.
(B) If the independent audit for the prior year resulted in a qualified opinion and the issues are not material, the regional center shall grant the entity a two-year exemption. The entity and the regional center shall continue to address issues raised in this independent audit, regardless of whether the exemption is granted.
(3) A regional center shall annually report to the department any exemptions granted pursuant to this subdivision.
(i) This section shall remain in effect only until January 1, 2018, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2018, deletes or extends that date.
SEC. 2.
Section 4652.5 is added to the Welfare and Institutions Code, to read:
4652.5.
(a) (1) An entity that receives payments from one or more regional centers shall contract with an independent accounting firm to obtain an independent audit or independent review report of its financial statements relating to payments made by regional centers, subject to both of the following:
(A) If the amount received from the regional center or regional centers during each state fiscal year is more than or equal to five hundred thousand dollars ($500,000), but less than two million dollars ($2,000,000), the entity shall obtain an independent review report of its financial statements for the entity’s fiscal year that includes the last day of the most recent state fiscal year. Consistent with Subchapter 21 (commencing with Section 58800) of Chapter 3 of Division 2 of Title 17 of the California Code of Regulations, this subdivision shall also apply to work activity program providers receiving less than five hundred thousand dollars ($500,000).
(B) If the amount received from the regional center or regional centers during each state fiscal year is equal to or more than two million dollars ($2,000,000), the entity shall obtain an independent audit of its financial statements for the entity’s fiscal year that includes the last day of the most recent state fiscal year.
(2) This requirement does not apply to payments made using usual and customary rates, as defined by Title 17 of the California Code of Regulations, for services provided by regional centers.
(3) This requirement does not apply to state and local governmental agencies, the University of California, or the California State University.
(b) An entity subject to subdivision (a) shall provide copies of the independent audit or independent review report required by subdivision (a), and accompanying management letters, to the vendoring regional center within nine months of the end of the entity’s fiscal year.
(c) Regional centers that receive the audit or review reports required by subdivision (b) shall review and require resolution by the entity for issues identified in the report that have an impact on regional center services. Regional centers shall take appropriate action, up to termination of vendorization, for lack of adequate resolution of issues.
(d) (1) Regional centers shall notify the department of all qualified opinion reports or reports noting significant issues that directly or indirectly impact regional center services within 30 days after receipt. Notification shall include a plan for resolution of issues.
(2) A regional center shall submit copies of all independent audit reports that it receives to the department for review. The department shall compile data, by regional center, on vendor compliance with audit requirements and opinions resulting from audit reports and shall annually publish the data in the performance dashboard developed pursuant to Section 4572.
(e) For purposes of this section, an independent review of financial statements shall be performed by an independent accounting firm and shall cover, at a minimum, all of the following:
(1) An inquiry as to the entity’s accounting principles and practices and methods used in applying them.
(2) An inquiry as to the entity’s procedures for recording, classifying, and summarizing transactions and accumulating information.
(3) Analytical procedures designed to identify relationships or items that appear to be unusual.
(4) An inquiry about budgetary actions taken at meetings of the board of directors or other comparable meetings.
(5) An inquiry about whether the financial statements have been properly prepared in conformity with generally accepted accounting principles and whether any events subsequent to the date of the financial statements would have a material effect on the statements under review.
(6) Working papers prepared in connection with a review of financial statements describing the items covered as well as any unusual items, including their disposition.
(f) For purposes of this section, an independent review report shall cover, at a minimum, all of the following:
(1) Certification that the review was performed in accordance with standards established by the American Institute of Certified Public Accountants.
(2) Certification that the statements are the representations of management.
(3) Certification that the review consisted of inquiries and analytical procedures that are lesser in scope than those of an audit.
(4) Certification that the accountant is not aware of any material modifications that need to be made to the statements for them to be in conformity with generally accepted accounting principles.
(g) The department shall not consider a request for adjustments to rates submitted in accordance with Title 17 of the California Code of Regulations by an entity receiving payments from one or more regional centers solely to fund either anticipated or unanticipated changes required to comply with this section.
(h) (1) An entity required to obtain an independent review report of its financial statement pursuant to subparagraph (A) of paragraph (1) of subdivision (a) may apply to the regional center for, and the regional center shall grant, a two-year exemption from the independent review report requirement if the regional center does not find issues in the prior year’s independent review report that have an impact on regional center services.
(2) An entity required to obtain an independent audit of its financial statements pursuant to subparagraph (B) of paragraph (1) of subdivision (a) may apply to the regional center for an exemption from the independent audit requirement, subject to both of the following conditions:
(A) If the independent audit for the prior year resulted in an unmodified opinion or an unmodified opinion with additional communication, the regional center shall grant the entity a two-year exemption.
(B) If the independent audit for the prior year resulted in a qualified opinion and the issues are not material, the regional center shall grant the entity a two-year exemption. The entity and the regional center shall continue to address issues raised in this independent audit, regardless of whether the exemption is granted.
(3) A regional center shall annually report to the department any exemptions granted pursuant to this subdivision.
(i) This section shall become operative on January 1, 2018.

Summary: Under existing law, the Lanterman Developmental Disabilities Services Act, the State Department of Developmental Services is authorized to contract with regional centers to provide services and supports to individuals with developmental disabilities. Existing law requires an entity that receives payments from one or more regional centers to obtain an independent audit or independent review report of its financial statements based upon the amount it receives from the regional center or regional centers during the entity’s fiscal year. This bill would, commencing January 1, 2018, instead require the entity to obtain an independent review report or an independent audit of its financial statements based upon the amount it receives from the regional center or regional centers during each state fiscal year. Existing law requires regional centers to notify the department of all qualified opinion reports or reports noting significant issues that directly or indirectly impact regional center services within 30 days after receipt. This bill would also require a regional center to submit copies of all independent audit reports that it receives to the department for review. The bill would require the department to compile data, by regional center, on vendor compliance with audit requirements and opinions resulting from audit reports and to annually publish the data in a performance dashboard.

An act to amend, repeal, and add Section 4652.5 of the Welfare and Institutions Code, relating to developmental services.


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

SECTION 1.
(a) The Legislature finds and declares the following:
(1) On October 12, 2010, the federal Secure and Responsible Drug Disposal Act of 2010 (Public Law 111-273; hereafter referred to as the Disposal Act) was enacted. Before the Disposal Act, individuals who wanted to dispose of unused, unwanted, or expired pharmaceutical controlled substances had limited disposal options. The federal Controlled Substances Act (21 U.S.C. Sec. 801 et seq.; hereafter referred to as the CSA) only permitted individuals to destroy those substances themselves (e.g., by flushing or discarding), surrender them to law enforcement, or seek assistance from the federal Drug Enforcement Administration (DEA). These restrictions resulted in the accumulation of pharmaceutical controlled substances in household medicine cabinets that were available for abuse, misuse, diversion, and accidental ingestion. The Disposal Act amended the CSA to authorize specified individuals, referred to as “ultimate users,” to deliver their pharmaceutical controlled substances to another person for the purpose of disposal in accordance with regulations promulgated by the United States Attorney General.
(2) On September 9, 2014, the DEA issued its final rule governing the secure disposal of controlled substances by registrants and ultimate users. Those regulations implement the Disposal Act by expanding the options available to collect controlled substances from ultimate users for the purpose of disposal, including take-back events, mail-back programs, and collection receptacle locations. Those regulations, among other things, allow authorized manufacturers, distributors, reverse distributors, narcotic treatment programs, hospitals/clinics with an onsite pharmacy, and retail pharmacies to voluntarily administer mail-back programs and maintain collection receptacles.
(b) It is the intent of the Legislature, with the enactment of this act, to do both of the following:
(1) Encourage the good faith participation of federally authorized entities to maintain secure drug take-back bins on their premises for the convenience and public health and safety of prescription drug consumers and the proper disposal in the waste stream of the pharmaceutical waste contained in the bins.
(2) Limit the civil and criminal liability of participating entities that meet certain minimum standards and take reasonable care to ensure the health and safety of consumers and employees when maintaining secure drug take-back bins on their premises.
(c) The terms and conditions provided by subdivision (b) of Section 1714.24 of the Civil Code, as added by this act, shall be construed in a manner consistent with the requirements imposed by the DEA’s final rule governing the secure disposal of controlled substances (79 Fed. Reg. 53519-70 (September 9, 2014)) and any regulations promulgated by the state.
SEC. 2.
Section 1714.24 is added to the Civil Code, to read:
1714.24.
(a) For purposes of this section, the following definitions shall apply:
(1) “Collector” includes only those entities authorized by and registered with the federal Drug Enforcement Administration to receive a controlled substance for the purpose of destruction, if the entity is in good standing with any applicable licensing authority.
(2) “Compensation” means reimbursement or funds received from a customer to compensate for the cost incurred in obtaining, installing, or maintaining a secure drug take-back bin. “Compensation” does not include reimbursement or funds received from any other person or entity, other than a customer, to compensate for the costs incurred in obtaining, installing, or maintaining a secure drug take-back bin.
(3) “Home-generated pharmaceutical waste” means a pharmaceutical that is no longer wanted or needed by the consumer and includes any delivery system, such as pills, liquids, and inhalers.
(4) “Maintains” includes owning, leasing, operating, or otherwise hosting a secure drug take-back bin on the collector’s premises.
(5) “Pharmaceutical” means a prescription or over-the-counter human or veterinary drug, including, but not limited to, a drug as defined in Section 109925 of the Health and Safety Code and Section 321(g)(1) of Title 21 of the United States Code. “Pharmaceutical” includes controlled substances included in Schedule II, III, IV, or V of the California Uniform Controlled Substances Act (Division 10 (commencing with Section 11000) of the Health and Safety Code), but does not include a controlled substance included in Schedule I.
(6) “Secure drug take-back bin” means a collection receptacle as described in Section 1317.75 of Title 21 of the Code of Federal Regulations.
(b) Any collector that maintains a secure drug take-back bin shall not be liable in a civil action, or be subject to criminal prosecution, for any injury or harm that results from the collector maintaining a secure drug take-back bin on its premises provided that the collector, not for compensation, acts in good faith to take all of the following steps to ensure the health and safety of consumers and employees and the proper disposal in the waste stream of the home-generated pharmaceutical waste contained in a secure drug take-back bin, unless the injury or harm results from the collector’s gross negligence or willful and wanton misconduct:
(1) Complies with all applicable state and federal laws and regulations relating to the collection of home-generated pharmaceutical waste for disposal in secure drug take-back bins, including, but not limited to, the federal Secure and Responsible Drug Disposal Act of 2010 (Public Law 111-273).
(2) Notifies local law enforcement and any local environmental health department as to the existence and location of any secure drug take-back bin on the collector’s premises and the status of the collector’s registration as a collector with the federal Drug Enforcement Administration.
(3) Ensures that the secure drug take-back bin is placed in a location that is regularly monitored by employees of the registered collector.
(4) Ensures that conspicuous signage is posted on the secure drug take-back bin that clearly notifies customers as to what controlled and noncontrolled substances are and are not acceptable for deposit into the bin, as well as the hours during which collection is allowed.
(5) Ensures that public access to the secure drug take-back bin is limited to hours in which employees of the registered collector are present and able to monitor the operation of the secure drug take-back bin.
(6) Regularly inspects the area surrounding the secure drug take-back bin for potential tampering or diversion. Record logs of those inspections shall be maintained and retained for two years, reflecting the date and time of the inspection, and the initials of the employee inspecting the area. The logs shall be maintained in writing or electronically and may be combined with logs required by state or federal regulations. The logs may be used to demonstrate regular inspection of the area. Other records or reports mandated by federal or state regulations shall also be retained for a minimum of two years unless regulations mandate a longer period.
(7) Notifies local law enforcement authorities of any suspected or known tampering, theft, or significant loss of controlled substances, within one business day of discovery. If the collector maintains daily business hours, this notification shall be made within one calendar day.
(8) Notify local law enforcement as to any decision to discontinue its voluntary collection of controlled substances and provide documentation of its written notification to the federal Drug Enforcement Administration’s Registration Unit as otherwise required under federal laws and regulations.
(c) Nothing in this section shall be construed to require entities that may qualify as a collector to acquire, maintain, or make available to the public a secure drug take-back bin on its premises.

Summary: Under existing law, the Medical Waste Management Act, the State Department of Public Health regulates the management and handling of medical waste, including pharmaceutical waste, as defined. The act generally prohibits a person from transporting, storing, treating, disposing, or causing the treatment of medical waste in a manner not authorized by the act. A violation of that provision is a crime. Under existing law, everyone is generally responsible, not only for the result of his or her willful acts, but also for an injury occasioned to another by his or her want of ordinary care or skill in the management of his or her property or person, except so far as the latter, has willfully or by want of ordinary care, brought the injury upon himself or herself. This bill would provide that a collector, as defined, is not liable for civil damages, or subject to criminal prosecution, for any injury or harm that results from the collector maintaining a secure drug take-back bin on its premises provided that the collector, not for compensation, acts in good faith to take specified steps, including that the collector regularly inspects the area surrounding the secure drug take-back bin for potential tampering or diversion, to ensure the health and safety of consumers and employees and the proper disposal in the waste stream of home-generated pharmaceutical waste, as defined, contained in the bins.

An act to add Section 1714.24 to the Civil Code, relating to pharmaceutical waste.


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

SECTION 1.
The Legislature finds and declares all of the following:
(a) The issue of corruption in small charter cities across the state is an increasing and alarming trend, with no signs of slowing or stopping.
(b) Small charter cities such as the City of Vernon, the City of Bell, and the City of Industry have long histories of abuses of power within city limits, going back decades. Those abuses include inflated salaries for city officials, failing to establish minimum qualifications for key positions, fiscally risky bond issuances, misappropriation of public funds, city officials issuing loans to themselves, failure to plan basic municipal responsibilities such as energy purchases according to best practices, incorrectly classifying employees to obtain higher, unearned retirement benefits, forcing employees to work at will for the city council, buying residential properties and renting them at below-market rents to city workers, inadequate and self-serving contracting policies, routine violations of conflict-of-interest policies, and little or no restrictions on city-issued credit cards.
(c) The voter base in small charter cities is tightly managed by city officials. The housing units within these cities are controlled by city leaders and rented out to handpicked tenants at below-market cost, thus keeping the voter base indebted to those in power. Efforts to broaden the homeowning population have met with resistance from city leaders, with officials in one city cutting power to new residents in an effort to force them from their homes.
(d) Criminal charges have also been filed in some instances, furthering the notion that these cities should not govern themselves. Voter fraud, conspiracy, and misappropriation of public funds are some of the charges that have been investigated, and are still being investigated, in some cases.
(e) This corruption has taken a toll on voter trust, citizen confidence, and taxpayer funds.
(f) In January 2016, an audit was released by the Controller highlighting the lack of administrative and internal accounting controls. Out of the 79 control elements evaluated by the Controller, 85 percent was found to be inadequate. Of the ethical components evaluated, none were found to be adequate.
(g) Historically, cities with small population size were not authorized to adopt a charter for local governance. However, in 1970, the Constitution was amended to authorize any city to adopt a charter. Since then, California’s citizens have seen one after another small charter city become mired in corruption and the leaders of these cities enrich themselves at the expense of the California taxpayer. Ensuring that our citizens, no matter where they live, have an open, honest, and transparent government is a matter of statewide concern, and not a municipal affair, and as a result the Legislature has the authority and the responsibility to impose heightened governing requirements. Therefore, the Legislature finds and declares that the provisions of this act are not a municipal affair, as that term is used in Section 5 of Article XI of the California Constitution, but are instead a matter of statewide concern.
SEC. 2.
Section 34096 is added to the Government Code, to read:
34096.
Notwithstanding any other law, all of the following shall apply to a city that is incorporated to promote commerce and industry, is located wholly within the County of Los Angeles, and had no residentially zoned land within its boundaries as of January 1, 1992:
(a) No more than 5 percent of the city’s total city-owned housing may be occupied by any of the following persons:
(1) Employees or officers of the city, including the family of employees or officers of the city.
(2) Persons that contract with the city, including employees of persons or companies that contract with the city, and including the family of persons who contract with the city and the family of employees of persons or companies that contract with the city.
(b) The city shall make an annual disclosure of all property owned by the city, wherever that property is situated.
(c) The city shall conduct an annual audit that utilizes internal control components and elements based on the guidelines established by the Government Accountability Office’s Internal Control Management and Evaluation Tool. The city shall substantially comply with those guidelines.
(d) This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 3.
Section 36516.7 is added to the Government Code, to read:
36516.7.
(a) Notwithstanding any other law, the compensation for service on the city council of a city that is incorporated to promote commerce and industry, is located wholly within the County of Los Angeles, and had no residentially zoned land within its boundaries as of January 1, 1992, shall not exceed $1,000 per month.
(b) This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC. 4.
Section 1100.8 is added to the Public Contract Code, to read:
1100.8.
(a) Notwithstanding Section 1100.7, this code shall apply to contracts entered into by a city that is incorporated to promote commerce and industry, is located wholly within the County of Los Angeles, and had no residentially zoned land within its boundaries as of January 1, 1992, including, but not limited to, contracts for the provision of waste collection and management services.
(b) This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
SEC.
5.
The Legislature finds and declares that a special law is necessary and that a general law cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the concerns related to the governance of a city that is incorporated to promote commerce and industry, is located wholly within the County of Los Angeles, and had no residentially zoned land within its boundaries as of January 1, 1992.
SEC. 6.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SECTION 1.
Section 34450 of the
Government Code
is amended to read:
34450.
Any city or city and county may enact, amend, or repeal a charter for its own government pursuant to this article or Article 3 (commencing with Section 9255) of Chapter 3 of Division 9 of the Elections Code.

Summary: Existing law The California Constitution authorizes any city or city and county to enact, amend, or repeal a charter for its own government, as specified. A charter adopted pursuant to these provisions supersedes general laws of the state in regard to a municipal affair, and a city charter may specify various matters including, but not limited to, compensation of city employees. This bill would, until January 1, 2028, require a city that is incorporated to promote commerce and industry, is located wholly within the County of Los Angeles, and had no residentially zoned land within its boundaries as of January 1, 1992, to conduct audits pursuant to a specified procedure and provide annual disclosures of property owned by the city, as specified. By increasing the duties of local officials, this bill would impose a state-mandated local program. The bill would, until January 1, 2028, additionally prohibit a city meeting this description from permitting more than 5 of any cityowned housing to be occupied by a city employee or officer, or person who contracts with the city, or their family. The bill would provide that until January 1, 2028, the compensation for service on the city council of a city meeting this description may not exceed $1,000 per month. Existing law states that the Public Contract Code is the basis of all contracts between most public entities and their contractors and subcontractors. Existing law further states that, with regard to charter cities, the code applies unless there is an express exemption or a charter city ordinance or regulation that is in direct conflict with the code. This bill would provide that until January 1, 2028, the Public Contract Code applies to a city that is incorporated to promote commerce and industry, is located wholly within the County of Los Angeles, and had no residentially zoned land within its boundaries as of January 1, 1992, as specified. This bill would declare that its provisions are a matter of statewide concern, and not a municipal affair. This bill would make legislative findings and declarations as to the necessity of a special statute for a city that is incorporated to promote commerce and industry, is located wholly within the County of Los Angeles, and had no residentially zoned land within its boundaries as of January 1, 1992. 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. This bill would make a nonsubstantive change to this provision.

An act to
amend Section 34450 of
add and repeal Sections 34096 and 36516.7 of
the Government Code,
and to add and repeal Section 1100.8 of the Public Contract Code,
relating to local government.


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

SECTION 1.
Section 44011 of the Health and Safety Code is amended to read:
44011.
(a) All motor vehicles powered by internal combustion engines that are registered within an area designated for program coverage shall be required biennially to obtain a certificate of compliance or noncompliance, except for the following:
(1) All motorcycles until the department, pursuant to Section 44012, implements test procedures applicable to motorcycles.
(2) All motor vehicles that have been issued a certificate of compliance or noncompliance or a repair cost waiver upon a change of ownership or initial registration in this state during the preceding six months.
(3) All motor vehicles manufactured prior to the 1976 model year or all motor vehicles manufactured after the
1976
1975
model year but prior to the 1981 model year that comply with paragraph (1) of subdivision (c).
(4) (A) Except as provided in subparagraph (B), all motor vehicles four or less model years old.
(B) Beginning January 1, 2005, all motor vehicles six or less model years old, unless the state board finds that providing an exception for these vehicles will prohibit the state from meeting the requirements of Section 176(c) of the federal Clean Air Act (42 U.S.C. Sec. 7401 et seq.) or the state’s commitments with respect to the state implementation plan required by the federal Clean Air Act.
(C) All motor vehicles excepted by this paragraph shall be subject to testing and to certification requirements as determined by the department, if any of the following apply:
(i) The department determines through remote sensing activities or other means that there is a substantial probability that the vehicle has a tampered emissions control system or would fail for other cause a smog check test as specified in Section 44012.
(ii) The vehicle was previously registered outside this state and is undergoing initial registration in this state.
(iii) The vehicle is being registered as a specially constructed vehicle.
(iv) The vehicle has been selected for testing pursuant to Section 44014.7 or any other provision of this chapter authorizing out-of-cycle testing.
(D) This paragraph does not apply to diesel-powered vehicles.
(5) In addition to the vehicles exempted pursuant to paragraph (4), any motor vehicle or class of motor vehicles exempted pursuant to subdivision (c) of Section 44024.5. It is the intent of the Legislature that the department, pursuant to the authority granted by this paragraph, exempt at least 15 percent of the lowest emitting motor vehicles from the biennial smog check inspection.
(6) All motor vehicles that the department determines would present prohibitive inspection or repair problems.
(7) Any vehicle registered to the owner of a fleet licensed pursuant to Section 44020 if the vehicle is garaged exclusively outside the area included in program coverage, and is not primarily operated inside the area included in program coverage.
(8) (A) All diesel-powered vehicles manufactured prior to the 1998 model year.
(B) All diesel-powered vehicles that have a gross vehicle weight rating of 8,501 to 10,000 pounds, inclusive, until the department, in consultation with the state board, pursuant to Section 44012, implements test procedures applicable to these vehicles.
(C) All diesel-powered vehicles that have a gross vehicle weight rating from 10,001 pounds to 14,000 pounds, inclusive, until the state board and the Department of Motor Vehicles determine the best method for identifying these vehicles, and until the department, in consultation with the state board, pursuant to Section 44012, implements test procedures applicable to these vehicles.
(D) All diesel-powered vehicles that have a gross vehicle weight rating of 14,001 pounds or greater.
(b) Vehicles designated for program coverage in enhanced areas shall be required to obtain inspections from appropriate smog check stations operating in enhanced areas.
(c) For purposes of subdivision (a), a collector motor vehicle, as defined in Section 259 of the Vehicle Code, is exempt from those portions of the test required by subdivision (f) of Section 44012 if the collector motor vehicle meets all of the following criteria:
(1) Submission of proof that the motor vehicle is insured as a collector motor vehicle, as shall be required by regulation of the bureau.
(2) The motor vehicle is at least 35 model years old.
(3) The motor vehicle complies with the exhaust emissions standards for that motor vehicle’s class and model year, as prescribed by the department, and the motor vehicle passes a functional inspection of the fuel cap and a visual inspection for liquid fuel leaks.
(d) This section shall remain in effect only until January 1, 2019, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2019, deletes or extends that date.
SEC. 2.
Section 44011 is added to the Health and Safety Code, to read:
44011.
(a) All motor vehicles powered by internal combustion engines that are registered within an area designated for program coverage shall be required biennially to obtain a certificate of compliance or noncompliance, except for the following:
(1) All motorcycles until the department, pursuant to Section 44012, implements test procedures applicable to motorcycles.
(2) All motor vehicles that have been issued a certificate of compliance or noncompliance or a repair cost waiver upon a change of ownership or initial registration in this state during the preceding six months.
(3) All motor vehicles manufactured prior to the 1976 model year.
(4) (A) Except as provided in subparagraph (B), all motor vehicles four or less model years old.
(B) All motor vehicles six or less model years old, unless the state board finds that providing an exception for these vehicles will prohibit the state from meeting the requirements of Section 176(c) of the federal Clean Air Act (42 U.S.C. Sec. 7401 et seq.) or the state’s commitments with respect to the state implementation plan required by the federal Clean Air Act.
(C) All motor vehicles excepted by this paragraph shall be subject to testing and to certification requirements as determined by the department, if any of the following apply:
(i) The department determines through remote sensing activities or other means that there is a substantial probability that the vehicle has a tampered emissions control system or would fail for other cause a smog check test as specified in Section 44012.
(ii) The vehicle was previously registered outside this state and is undergoing initial registration in this state.
(iii) The vehicle is being registered as a specially constructed vehicle.
(iv) The vehicle has been selected for testing pursuant to Section 44014.7 or any other provision of this chapter authorizing out-of-cycle testing.
(D) This paragraph does not apply to diesel-powered vehicles.
(5) In addition to the vehicles exempted pursuant to paragraph (4), any motor vehicle or class of motor vehicles exempted pursuant to subdivision (c) of Section 44024.5. It is the intent of the Legislature that the department, pursuant to the authority granted by this paragraph, exempt at least 15 percent of the lowest emitting motor vehicles from the biennial smog check inspection.
(6) All motor vehicles that the department determines would present prohibitive inspection or repair problems.
(7) Any vehicle registered to the owner of a fleet licensed pursuant to Section 44020 if the vehicle is garaged exclusively outside the area included in program coverage, and is not primarily operated inside the area included in program coverage.
(8) (A) All diesel-powered vehicles manufactured prior to the 1998 model year.
(B) All diesel-powered vehicles that have a gross vehicle weight rating of 8,501 to 10,000 pounds, inclusive, until the department, in consultation with the state board, pursuant to Section 44012, implements test procedures applicable to these vehicles.
(C) All diesel-powered vehicles that have a gross vehicle weight rating from 10,001 pounds to 14,000 pounds, inclusive, until the state board and the Department of Motor Vehicles determine the best method for identifying these vehicles, and until the department, in consultation with the state board, pursuant to Section 44012, implements test procedures applicable to these vehicles.
(D) All diesel-powered vehicles that have a gross vehicle weight rating of 14,001 pounds or greater.
(b) Vehicles designated for program coverage in enhanced areas shall be required to obtain inspections from appropriate smog check stations operating in enhanced areas.
(c) For purposes of subdivision (a), a collector motor vehicle, as defined in Section 259 of the Vehicle Code, is exempt from those portions of the test required by subdivision (f) of Section 44012 if the collector motor vehicle meets all of the following criteria:
(1) Submission of proof that the motor vehicle is insured as a collector motor vehicle, as shall be required by regulation of the bureau.
(2) The motor vehicle is at least 35 model years old.
(3) The motor vehicle complies with the exhaust emissions standards for that motor vehicle’s class and model year as prescribed by the department, and the motor vehicle passes a functional inspection of the fuel cap and a visual inspection for liquid fuel leaks.
(d) This section shall become operative on January 1, 2019.

Summary: Existing law establishes a motor vehicle inspection and maintenance program that is administered by the Department of Consumer Affairs. The smog check program requires inspection of motor vehicles upon initial registration, biennially upon renewal of registration, upon transfer of ownership, and in certain other circumstances. Existing law exempts specified vehicles from being inspected biennially upon renewal of registration, including, among others, all motor vehicles manufactured prior to the 1976 model year. This bill, until January 1, 2019, would also exempt from the biennial smog check inspections all motor vehicles manufactured after the 1976 1975 model year but prior to the 1981 model year if the owner submits proof that the motor vehicle is insured as a collector motor vehicle.

An act to amend, repeal, and add Section 44011 of the Health and Safety Code, relating to vehicular air pollution.


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

SECTION 1.
Part 3 (commencing with Section 1000) is added to Division 1 of the Food and Agricultural Code, to read:
PART 3. Agricultural Innovation Zones Incentive Program
1000.
The Legislature finds and declares both of the following:
(a) It is the intent of the Legislature to support farmers in adopting environmental farming practices near schools and senior health care centers that are more resilient to the unavoidable consequences of climate change and that offer other societal and ecosystem benefits.
(b) It is further the intent of the Legislature that the department establish a voluntary agricultural innovation zones incentive program to provide incentives to farmers to adopt an agricultural innovation zone and employ environmental farming practices within that zone to protect the health and cognition of future California generations. The establishment of agricultural innovation zones in disadvantaged communities should be the highest priority.
1001.
Unless the context otherwise requires, the following definitions govern the construction of this part:
(a) “Agricultural innovation zone” means an area within ___ miles of the boundary of a school or senior health care center where farmers follow environmental farming practices.
(b) “Department” means the Department of Pesticide Regulation.
(c) “School” means any public or private facility used as a child day care facility, as defined in Section 1596.750 of the Health and Safety Code, or for kindergarten, elementary, or secondary school purposes. The term includes the buildings or structures, playgrounds, athletic fields, or any other area of property visited or used by pupils. “School” does not include any postsecondary educational facility.
(d) “Senior health care center” means any facility that is a licensed skilled nursing facility or licensed intermediate care facility, as defined in Section 1250 of the Health and Safety Code, or any facility that offers assisted living services, as defined in paragraph (5) of subdivision (a) of Section 1771 of the Health and Safety Code.
(e) “Disadvantaged community” has the same meaning as defined in Section 39711 of the Health and Safety Code.
(f) “Environmental farming practices” means practices that promote the well-being of ecosystems, air quality, public health, water quality, soil health, biodiversity, and wildlife and their habitat. Environmental farming practices include, but are not limited to, the following:
(1) The following federal Natural Resources Conservation Service conservation practices:
(A) Integrated pest management, practice code 595.
(B) Cover crops, practice code 340.
(C) Crop rotation, practice code 328.
(D) Reduced tillage, practice code 345.
(2) Federal Natural Resources Conservation Service conservation enhancements regarding plantings, soil quality, and water quality.
(3) Practices that improve soil health, decrease greenhouse gas emissions, or sequester carbon.
(4) Practices that avoid applications of pesticides other than those authorized as part of organic certification pursuant to the federal Organic Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.).
1002.
(a) By January 1, 2018, the department, in consultation with the Department of Food and Agriculture, shall establish a voluntary incentive program for farmers who use environmental farming practices within an agricultural innovation zone and shall give priority to projects in agricultural innovation zones located in disadvantaged communities.
(b) The types of incentives available may include, but are not limited to, loans, grants, technical assistance, education, and demonstration projects.
(c) The department, in consultation with the Department of Food and Agriculture, shall establish specific criteria for determining which farming practices qualify as environmental farming practices. To be eligible for the program, applicants shall introduce at least one new environmental farming practice that qualifies pursuant to this subdivision.
(d) The department shall establish procedures for applicants to access the program and include a ranking system to determine which projects may have the greatest impact toward improving soil health or sequestering carbon.
(e) At least 50 percent of any funding available for the program shall be given to projects that avoid applications of pesticides other than those authorized as part of organic certification pursuant to the federal Organic Foods Production Act of 1990 (7 U.S.C. Sec. 6501 et seq.).
(f) The department may determine whether an applicant may access incentives on the portion of their property that extends beyond the agricultural innovation zone on a case-by-case basis.
1003.
(a) By January 1, 2021, and by January 1 every three years thereafter, the department shall issue a report to the Legislature that details the impact of the voluntary agricultural innovation zones incentive program and includes successes and challenges regarding the process for distributing incentives and the projects that use the incentives. The report shall include, but not be limited to, data on all of the following:
(1) The total number of acres of farmland that have adopted environmental farming practices under the program.
(2) The total number of acres of farmland that have adopted each specific environmental farming practice under the program.
(3) The counties where projects under the program are located and how many projects are within those counties.
(4) The reduction of pesticide use achieved under the program.
(b) This report shall be submitted in compliance with Section 9795 of the Government Code.
1004.
The department and the Department of Food and Agriculture shall conduct the activities specified in this part with existing resources, to the extent they are available.
SECTION 1.
Section 563 is added to the
Food and Agricultural Code
, to read:
563.
The Legislature finds and declares both of the following:
(a)It is the intent of the Legislature to support farmers in adopting environmental farming practices near schools and day care centers that are more resilient to the unavoidable consequences of climate change and that offer other societal and ecosystem benefits.
(b)It is further the intent of the Legislature that the department establish agricultural innovation zones and prioritize incentives to farmers who maintain or intend to adopt an agricultural innovation zone to ensure the health and learning of future California generations and that the establishment of agricultural innovation zones in disadvantaged communities should be the highest priority.
SEC. 2.
Section 564 of the
Food and Agricultural Code
is amended to read:
564.
Unless the context otherwise requires, the following definitions govern the construction of this article:
(a)“Agricultural activities” means those activities that generate products as specified in Section 54004.
(b)“Agricultural innovation zone” means an area within one mile of a school or day care center where farmers follow environmental farming practices, including organic farming practices, that promote the well-being of ecosystems, air quality, public health, water quality, soil health, and wildlife and their habitat and that do not rely on synthetic inputs.
(c)“Department” means the Department of Food and Agriculture.
(d)“Panel” means the Scientific Advisory Panel on Environmental Farming.
(e)“Secretary” means the Secretary of Food and Agriculture.
SEC. 3.
Section 566 of the
Food and Agricultural Code
is amended to read:
566.
(a)The department shall establish and oversee an environmental farming program. The program shall provide incentives to farmers whose practices promote the well-being of ecosystems, air quality, public health, water quality, soil health, and wildlife and their habitat.
(b)As part of the program, the department shall establish agricultural innovation zones and shall give priority to agricultural innovation zones for incentives to farmers, with special priority for agricultural innovation zones in disadvantaged communities.
(c)The department may assist in the compilation of scientific evidence from public and private sources, including the scientific community, industry, conservation organizations, and federal, state, and local agencies identifying the net environmental impacts that agriculture creates for the environment. The department shall serve as the depository of this information and provide it to federal, state, and local governments, as needed.
(d)The department shall conduct the activities specified in this article with existing resources, to the extent they are available.

Summary: Existing law requires the Department of Food and Agriculture to establish and oversee an environmental farming program that provides incentives to farmers whose practices promote the well-being of ecosystems, air quality, and wildlife and their habitat. This bill would also include practices that promote public health, water quality, and soil health and would require the department, as part of that program, to establish agricultural innovation zones, as defined, and to give priority to agricultural innovation zones for incentives to farmers, with special priority for agricultural innovation zones in disadvantaged communities. The bill would state the Legislature’s intent relating to environmental farming practices and the establishment of agricultural innovation zones, as specified. would, by January 1, 2018, require the Department of Pesticide Regulation, in consultation with the Department of Food and Agriculture, to establish a voluntary incentive program for farmers who use environmental farming practices, as defined, within an agricultural innovation zone, as defined. The bill would require priority be given to projects in agricultural innovation zones located in disadvantaged communities, as defined. The bill would require the Department of Pesticide Regulation, by January 1, 2021, and by January 1 every 3 years thereafter, to issue a report to the Legislature that details the impacts of the voluntary agricultural innovation zones incentive program and includes successes and challenges regarding the process for distributing incentives and the projects that use the incentives. The bill would require the departments to conduct these activities with existing resources, to the extent they are available.

An act to
amend Sections 564 and 566 of, and to add Section 563 to,
add Part 3 (commencing with Section 1000) to Division 1 of
the Food and Agricultural Code, relating to food and agriculture.


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

SECTION 1.
Section 9084 of the Elections Code is amended to read:
9084.
The ballot pamphlet shall contain all of the following:
(a) A complete copy of each state measure.
(b) A copy of the specific constitutional or statutory provision, if any, that each state measure would repeal or revise.
(c) A copy of the arguments and rebuttals for and against each state measure.
(d) A copy of the analysis of each state measure.
(e) Tables of contents, indexes, art work, graphics, and other materials that the Secretary of State determines will make the ballot pamphlet easier to understand or more useful for the average voter.
(f) A notice, conspicuously printed on the cover of the ballot pamphlet, indicating that additional copies of the ballot pamphlet will be mailed by the county elections official upon request.
(g) A written explanation of the judicial retention procedure as required by Section 9083.
(h) The Voter Bill of Rights pursuant to Section 2300.
(i) If the ballot contains an election for the office of United States Senator, information on candidates for United States Senator. A candidate for United States Senator may purchase the space to place a statement in the state ballot pamphlet that does not exceed 250 words. The statement may not make any reference to any opponent of the candidate. The statement shall be submitted in accordance with timeframes and procedures set forth by the Secretary of State for the preparation of the state ballot pamphlet.
(j) If the ballot contains a question on the confirmation or retention of a justice of the Supreme Court, information on justices of the Supreme Court who are subject to confirmation or retention.
(k) If the ballot contains an election for the offices of President and Vice President of the United States, a notice that refers voters to the Secretary of State’s Internet Web site for information about candidates for the offices of President and Vice President of the United States.
(l) A written explanation of the appropriate election procedures for party-nominated, voter-nominated, and nonpartisan offices as required by Section 9083.5.
(m) A written explanation of the top 10 contributor lists required by Section 84223 of the Government Code, including a description of the Internet Web sites where those lists are available to the public.
(n) A copy of all the information posted on the
dedicated Internet
Web page
of
that is hyperlinked to
the
homepage of the
Internet Web site of the
____
Legislative Analyst
’s Office
pursuant to the California Financial Transparency Act of 2016 (Chapter 5.3 (commencing with Section 8347) of Division 1 of Title 2 of the Government Code).
SEC. 2.
Chapter 5.3 (commencing with Section 8347) is added to Division 1 of Title 2 of the Government Code, to read:
CHAPTER  5.3. California Financial Transparency Act of 2016
8347.
This chapter shall be known and may be cited as the California Financial Transparency Act of 2016.
8347.10.
The
____ [an entity of state government]
Legislative Analyst
shall post all of the following current total amounts on a dedicated
Internet
Web page that is hyperlinked to the homepage of
its
the
Internet Web
site:
site of the Legislative Analyst’s Office:
(a) State revenues.
(b) State expenditures.
(c) Unfunded state pension liability.
(d) Unfunded state retiree medical benefit liability.
(e) Unfunded infrastructure needs.
(f) Bond debt.
(g) Unrestricted net position.
8347.20.
On or before January 1 and July 1 of each year, the
____
Legislative Analyst
shall update the
Internet
Web page required by Section 8347.10.
SEC. 3.
Section 88001 of the Government Code is amended to read:
88001.
The ballot pamphlet shall contain all of the following:
(a) A complete copy of each state measure.
(b) A copy of the specific constitutional or statutory provision, if any, that would be repealed or revised by each state measure.
(c) A copy of the arguments and rebuttals for and against each state measure.
(d) A copy of the analysis of each state measure.
(e) Tables of contents, indexes, art work, graphics, and other materials that the Secretary of State determines will make the ballot pamphlet easier to understand or more useful for the average voter.
(f) A notice, conspicuously printed on the cover of the ballot pamphlet, indicating that additional copies of the ballot pamphlet will be mailed by the county elections official upon request.
(g) A written explanation of the judicial retention procedure as required by Section 9083 of the Elections Code.
(h) The Voter Bill of Rights pursuant to Section 2300 of the Elections Code.
(i) If the ballot contains an election for the office of United States Senator, information on candidates for United States Senator. A candidate for United States Senator may purchase the space to place a statement in the state ballot pamphlet that does not exceed 250 words. The statement may not make any reference to any opponent of the candidate. The statement shall be submitted in accordance with timeframes and procedures set forth by the Secretary of State for the preparation of the state ballot pamphlet.
(j) If the ballot contains a question as to the confirmation or retention of a justice of the Supreme Court, information on justices of the Supreme Court who are subject to confirmation or retention.
(k) If the ballot contains an election for the offices of President and Vice President of the United States, a notice that refers voters to the Secretary of State’s Internet Web site for information about candidates for the offices of President and Vice President of the United States.
(l) A written explanation of the appropriate election procedures for party-nominated, voter-nominated, and nonpartisan offices as required by Section 9083.5 of the Elections Code.
(m) A written explanation of the top 10 contributor lists required by Section 84223, including a description of the Internet Web sites where those lists are available to the public.
(n) A copy of all the information posted on the
dedicated Internet
Web page
of
that is hyperlinked to
the
homepage of the
Internet Web site of the
____
Legislative Analyst
’s Office
pursuant to the California Financial Transparency Act of 2016 (Chapter 5.3 (commencing with Section 8347) of Division 1 of Title 2).
SEC. 4.
The Legislature finds and declares that Section 3 of this act, amending Section 88001 of the Government Code, is an amendment of the Political Reform Act of 1974 that requires the inclusion of additional information on the ballot pamphlet in accordance with Section 88007 of the Government Code.

Summary: Existing law requires a local agency, if it maintains an Internet Web site and is required to report specific financial information to the Controller, to post, in a conspicuous location on its Internet Web site, information on the annual compensation of its elected officials, officers, and employees. Existing law authorizes a local agency to meet this requirement by posting a link to the Controller’s Government Compensation in California Internet Web site in a conspicuous location on its Internet Web site. This bill would establish the California Financial Transparency Act of 2016 and would require an entity of state government the Legislative Analyst to create and maintain a dedicated Internet Web page, page that is hyperlinked to the homepage of its the Internet Web site, site of the Legislative Analyst’s Office that lists specific state financial obligations. The Political Reform Act of 1974 and the Elections Code each require the Secretary of State to prepare a ballot pamphlet that contains specific information. This bill would require the Secretary of State to include in a ballot pamphlet a copy of all the information posted on a the dedicated Internet Web page, page that is hyperlinked to the homepage of the Internet Web site of an unspecified entity in state government, the Legislative Analyst’s Office pursuant to the California Financial Transparency Act of 2016. The Political Reform Act of 1974, an initiative measure, provides that the Legislature may amend the act to further the act’s purposes with a 23 vote of each house and compliance with specified procedural requirements. The act also provides that, notwithstanding this vote requirement, the Legislature may amend specified provisions to add to the ballot pamphlet information regarding candidates or other information. This bill, which would require additional information to be included in the ballot pamphlet, without making other changes to the act, would therefore require a majority vote.

An act to amend Section 9084 of the Elections Code, and to amend Section 88001 of, and to add Chapter 5.3 (commencing with Section 8347) to Division 1 of Title 2 of, the Government Code, relating to state government.


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

SECTION 1.
Section 314 is added to the Code of Civil Procedure, immediately following Section 313, to read:
314.
(a) This section shall be known, and may be cited as, the Civility in Litigation Act.
(b) Notwithstanding any law, a person who claims to have been aggrieved by an alleged unlawful act or practice shall, before filing any legal action or pursuing legally mandated alternative dispute resolution, including mandatory arbitration, send a letter to the person or entity he or she alleges to have caused the harm that sets forth alleged facts in support of the grievance and any other information necessary to inform the person or entity of the alleged harm suffered. The letter shall be signed by the person who claims to have been aggrieved, or his or her representative.
(1) The letter shall be sent by certified mail to the last known address of the person or entity alleged to have engaged in the unlawful act or practice.
(2) The letter may, alternatively, be sent to an authorized representative of the person or entity that is alleged to have engaged in the unlawful act or practice.
(c) If the person or entity alleged to have engaged in the unlawful act or practice responds to the person who claims to have been aggrieved within 30 days after the letter specified in subdivision (b) is received, or delivery of the letter is attempted, the person claiming to have been aggrieved shall engage with the person or entity alleged to have engaged in the unlawful act or practice in good faith efforts to be made whole.
(d) If the person alleged to have engaged in an unlawful act or practice fails to respond to the letter within 30 days after the letter is received, or delivering of the letter is attempted, the person who claims to have been aggrieved may pursue other efforts to be made whole, including filing a complaint in a court of competent jurisdiction or alternative dispute resolution, including mandatory arbitration if applicable.
(e) The statute of limitations on a claim arising from the alleged unlawful act or practice subject to this section shall be tolled for a period of 30 days following the date of mailing as set forth in subdivision (a), plus any additional period of time during which the parties engage in negotiations under this section.
(f) If the person who claims to have been aggrieved files a complaint in a court of law, he or she shall attach to the complaint a copy of the letter sent pursuant to this section and proof of its mailing. If the person who claims to have been aggrieved knows that the letter he or she sent to the person or entity alleged to have engaged in the unlawful act or practice was not received, he or she shall disclose that information in the complaint, shall describe the good faith efforts he or she made to comply with this section, and shall include any information explaining whether and why the provisions of this section were not complied with.
(g) If a court, factfinder, or arbiter determines that the provisions of this subdivision were not complied with in good faith, that determination may be grounds for dismissing a claim that would otherwise be authorized. Because of the public policy encouraging resolution of disputes and a full and fair hearing on those disputes, if the court or other lawfully authorized factfinder dismisses a claim under this paragraph, he or she shall state in writing and with specificity why the case was dismissed and whether the case was dismissed with prejudice. If the alleged claims by an aggrieved party are not time barred, including the tolling of the limitation period as set forth in subdivision (e), the claims should be dismissed without prejudice to allow the aggrieved party to cure any alleged defects under this section.
(h) This section does not apply to a claim arising from matters related to, or violations of, the Family Code, Chapter 7 (commencing with Section 12960) of Part 2.8 of Division 3 of Title 2 of the Government Code, the Penal Code, or the Probate Code.
(i) This section does not apply in the case of a true emergency in which court relief is required immediately under the terms and conditions required for injunctive relief pursuant to Section 526.
(j)  Attempts to comply with this section by a person receiving a demand shall be construed to be an offer to compromise and shall be inadmissible as evidence pursuant to Section 1152 of the Evidence Code. Further, attempts to comply with a demand shall not be considered an admission of engaging in an unlawful act or practice. Evidence of compliance or attempts to comply with this section may be introduced by a defendant solely for the purpose of establishing good faith or to show compliance with this section.
(k) As used in this section, “authorized representative” means any person designated in writing by the person or entity alleged to have engaged in an unlawful act or practice to be his or her representative, and includes attorneys, representatives of an insurance company, or any other person who is authorized to resolve disputes on behalf of the person or entity alleged to have engaged in an unlawful act or practice with binding authority to resolve a dispute.

Summary: Existing law states the time and procedure for commencement of civil actions. This bill would require a person who claims to have been aggrieved by an alleged unlawful act or practice, to send a letter to the person or entity he or she alleges to have caused the harm that sets forth alleged facts in support of the grievance and any other information necessary to inform the person or entity of the alleged harm suffered, prior to filing any legal action or pursuing legally mandated alternative dispute resolution, as specified. The bill would require the person who claims to have been aggrieved to engage with that person or entity in good faith efforts to be made whole, if, during the 30-day period following the date on which the letter was received there is a response from the person or entity that is alleged to have engaged in the unlawful act or practice. The bill would toll the statute of limitations on a claim arising from the alleged unlawful act or practice for the 30-day period, including the following period of negotiations, if any. If, after that 30-day period there is no response, the bill would authorize the person who claims to have been aggrieved to pursue other efforts to be made whole, including filing a claim in a court of competent jurisdiction or alternative dispute resolution. The bill would require that if the person who claims to have been aggrieved files a complaint in a court of law, he or she shall describe in the complaint the good faith efforts he or she made to comply with these provisions or attach a copy of the letter sent pursuant to this section and proof of its mailing to the complaint. The bill would also authorize a court, factfinder, or arbiter, if it determines that these provisions were not complied with in good faith, to dismiss a claim that is otherwise authorized, in which case it would be required to state in writing and with specificity why the case was dismissed, and whether or not the case is dismissed with or without prejudice.

An act to add Section 314 to the Code of Civil Procedure, relating to civil law.


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

SECTION 1.
Section 6060.1.5 is added to the Business and Professions Code, to read:
6060.1.5.
(a) In addition to satisfying the requirements in Section 6060, irrespective of the manner or law school in which an applicant acquires his or her legal education, an applicant for admission and a license to practice shall complete at least 50 hours of pro bono legal service prior to admission. The purpose of this pro bono legal service requirement is to supplement the applicant’s legal education with practical legal work experience and expose the applicant to the professional value of pro bono legal service for the public good.
(b) All qualifying pro bono legal service shall be performed under the supervision of one of the following:
(1) A member of a law school faculty, including part-time faculty, or an instructor employed by a law school.
(2) A person with the appropriate licensing to represent the client before the relevant judicial body or government agency, which includes, but is not limited to, an active licensed attorney in good standing.
(3) An active licensed attorney in good standing.
(c) For the purposes of this section, the following definitions shall apply:
(1) “Pro bono legal service” means work without compensation from the client who receives the legal service that is designed to benefit the public interest or persons who are indigent or of modest means for one of the individuals, organizations, or programs listed in subdivision (d) that is for one of the following purposes:
(A) To secure or promote access to justice, including, but not limited to, the protection of civil rights, civil liberties, or public rights.
(B) To address the economic, health, and social needs of persons who are indigent or of modest means.
(C) To further the purpose of a charitable, civic, community, governmental, or educational organization where payment of the market rate for legal fees would significantly deplete the organization’s resources or would otherwise be inappropriate.
(2) “Modest means” means low income, very low income, or extremely low income under the official state income limits established by the Department of Housing and Community Development under Section 50093 of the Health and Safety Code or under comparable official state income limits in another United States jurisdiction.
(3) “Attorney incubator program” means a postgraduate training program that teaches attorneys how to form, develop, and sustain law firms.
(d) Pro bono legal service shall be performed with or for any of the following:
(1) A “legal aid organization,” as defined by Section 6159.51, or a qualified legal services project or a qualified support center, as defined in Section 6213.
(2) A nonprofit organization.
(3) A charitable, civic, community, governmental, or educational organization.
(4) An externship, law school clinic or other placement approved for credit hours by a law school, or law school-sponsored project, in which the applicant is assigned work that otherwise meets the criteria of this section.
(5) A law firm, including a solo practitioner, or other legal services provider where the applicant is assigned work that otherwise meets the criteria of this section.
(6) A State Bar-certified lawyer referral and information services panel that provides legal services to the indigent or persons of modest means without charge or for less than market rate.
(7) An attorney incubator program or nonprofit law corporation affiliated with a law school or bar association that provides legal services to the indigent or persons of modest means without charge or for less than market rate.
(e) Nothing in this section prohibits an applicant from receiving compensation, including, but not limited to, a salary, for performing pro bono legal service that is paid by a person or entity other than the client who receives the pro bono legal service.
(f) Subject to subdivision (b), the 50 hours of pro bono legal service, or any portion thereof, may be completed in any state or territory of the United States, the District of Columbia, or any foreign country.
(g) The 50 hours of pro bono legal service shall be provided after the commencement of the applicant’s legal studies, and prior to admission.
(h) (1) Upon completion of the pro bono legal service requirement, an applicant shall complete a form describing the nature and dates of pro bono legal service and the number of hours completed and submit the form to the State Bar. Both the applicant and the supervising attorney or active judge shall sign the form. The State Bar shall adopt rules for its retention of the certification forms.
(2) The State Bar may create the form upon which the applicant can report completion of pro bono legal service.
(i) No applicant may satisfy any part of the 50-hour requirement by participating in any partisan political activities.
(j) The requirements of this section do not apply to:
(1) An applicant who is already admitted to practice in any state, territory, or foreign jurisdiction.
(2) An applicant who has earned a J.D. or its equivalent in a foreign jurisdiction and is qualified to practice without a separate admission process in that jurisdiction.
(3) An applicant qualifying for admission by completion of an LL.M. degree program.
(k) (1) Each law school shall publicly disclose on its Internet Web site through a link from the Internet Web site homepage of the law school under “Pro Bono Legal Service Requirement for Law Students,” all of the following information:
(A) A description of the requirements of this section.
(B) Links to programs available to students at the school and in the local community that provide opportunities for pro bono legal service and allow students to comply with the requirements of this section.
(C) To the extent practicable, information about times and dates when the programs are open or available to students that have been provided to the law school by the pro bono legal service program.
(2) Each law school shall provide an initial link to the above information to the State Bar no later than January 1, 2018, and shall maintain updated links to qualifying school and community programs on an annual basis.
(l) The State Bar shall publicly disclose on its Internet Web site, with a link from the “Future Lawyers” or “Admissions” Internet Web page of the State Bar under “Pro Bono Legal Service Requirement for Law Students,” all of the following information:
(1) A description of the requirements of this section.
(2) A link to the information described in paragraph (1) of subdivision (k) for each law school in the state that provides its link to that information to the State Bar pursuant to paragraph (2) of subdivision (k).
(m) Pursuant to rules adopted under subdivision (g), the State Bar shall randomly audit the compliance documentation applicants submit to ensure its consistency with the criteria in paragraph (1) of subdivision (c). This section shall not require the State Bar to audit or investigate any service providers for which work was done by an applicant or to evaluate the substance of any work that was done by an applicant.
(n) The requirements of this section shall apply to all applicants who enter law school on or after January 1, 2018.

Summary: Existing law, the State Bar Act, requires an applicant for admission and a license to practice law, to meet certain requirements, including, but not limited to, having completed certain legal education in a law school, law office, or judge’s chambers, passed an examination in professional responsibility, and passed the general bar examination. Existing law prohibits a person from practicing law in this state unless he or she is an active member of the State Bar. This bill would additionally require an applicant, prior to admission, to complete at least 50 hours of supervised pro bono legal service, as specified, in order to supplement the applicant’s legal education with practical legal work experience. Upon completion of the pro bono legal service requirement, the bill would require an applicant and the supervisor, as defined, to complete and sign a form confirming completion of the pro bono service. The bill would require the State Bar to adopt rules for the retention of the certification forms. The bill would authorize the State Bar to create the form upon which an applicant can report completion of pro bono service. The bill would require the State Bar to randomly audit submitted forms to ensure compliance with these provisions. The bill would provide that these provisions apply to all applicants who enter law school on or after January 1, 2018.

An act to add Section 6060.1.5 to the Business and Professions Code, relating to the State Bar Act.