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

SECTION 1.
This act shall be known, and may be cited, as the Healthy Food, Healthy Student Act.
SEC. 2.
Section 49430 of the Education Code is amended to read:
49430.
As used in this article, the following terms have the following meanings:
(a) “Added sweetener” means an additive other than 100 percent fruit juice that enhances the sweetness of a beverage.
(b) “Combination foods” means products that contain two or more components representing two or more of the recommended food groups: fruit, vegetable, dairy, protein, or grains.
(c) “Competitive foods” means all food and beverages other than meals reimbursed under programs authorized by the federal Richard B. Russell National School Lunch Act (Public Law 113-79) and the federal Child Nutrition Act of 1966 (42 U.S.C. Sec. 1771 et seq.) available for sale to pupils on the school campus during the schoolday.
(d) “Deep fried” means a food item that is cooked by total submersion in oil or fat.
(e) “Elementary school” means a school operated and maintained by a school district or county office of education that maintains any grade from kindergarten to grade 6, inclusive, but no grade higher than grade 6.
(f) “Entrée” means a food that is generally regarded as being the primary food in a meal, and shall include, but not be limited to, sandwiches, burritos, pasta, and pizza.
(g) “Flash fried” means a food item that is quickly fried on both sides in oil with a temperature of 400 degrees Fahrenheit or higher.
(h) “High school” means a school operated and maintained by a school district or county office of education maintaining any of grades 9 to 12, inclusive.
(i) “Middle school” means a school operated and maintained by a school district or county office of education that maintains grade 7 or 8, grades 7 to 9, inclusive, or grades 7 to 10, inclusive.
(j) “Par fried” means a food item that is fried to reach an internal temperature of 160 degrees Fahrenheit then it is cooled to room temperature so that it may be refrigerated or frozen for future frying.
(k) “School campus” means all areas of the property under the jurisdiction of the school that are accessible to pupils during the schoolday.
(l) “Schoolday” means the period from the midnight before to 30 minutes after the end of the official schoolday.
(m) “Snack” means a food that is generally regarded as supplementing a meal, including, but not limited to, chips, crackers, yogurt, cheese, nuts, seeds, fruit, or vegetables.
(n) “Sold” means the exchange of food or beverages for money, coupons, vouchers, or order forms when any part of the exchange occurs on a school campus.
SEC. 3.
Section 49430.5 of the Education Code is amended to read:
49430.5.
(a) The reimbursement a school receives for free and reduced-price meals sold or served to pupils in elementary, middle, or high schools included within a school district, charter school, or county office of education shall be twenty-two and seventy-one hundredths cents ($0.2271) per meal, and, for meals served in child care centers and homes, the reimbursement shall be sixteen and ninety-one hundredths cents ($0.1691) per meal.
(b) To qualify for the reimbursement for free and reduced-price meals provided to pupils in elementary, middle, or high schools, a school shall follow the United States Department of Agriculture meal pattern.
(c) The reimbursement rates set forth in this section shall be adjusted annually for increases in cost of living in the same manner set forth in Section 42238.1.
SEC. 4.
Section 49430.7 of the Education Code is amended to read:
49430.7.
(a) For purposes of this section, the following terms have the following meanings:
(1) “Child development program” means a program operated pursuant to Chapter 2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1.
(2) “School” means a school operated and maintained by a school district or county office of education, or a charter school.
(3) “School district” means a school district, charter school, or county office of education.
(b) As a condition of receipt of funds pursuant to Section 49430.5, commencing with the 2007–08 fiscal year, for meals and food items sold as part of the free and reduced-price meal programs, a school or school district shall comply with all of the following requirements and prohibitions:
(1) Follow the United States Department of Agriculture meal pattern.
(2) Not sell or serve a food item that has in any way been deep fried, par fried, or flash fried by a school or school district.
(3) Not sell or serve a food item containing artificial trans fat. A food item contains artificial trans fat if it contains vegetable shortening, margarine, or any kind of hydrogenated or partially hydrogenated vegetable oil, unless the manufacturer’s documentation or the label required on the food, pursuant to applicable federal and state law, lists the trans fat content as less than 0.5 grams per serving.
(4) Not sell or serve a food item that, as part of the manufacturing process, has been deep fried, par fried, or flash fried in an oil or fat that is prohibited by this paragraph. Oils and fats prohibited by this paragraph include, but are not limited to, palm, coconut, palm kernel, and lard, typically solid at room temperature and are known to negatively impact cardiovascular health. Oils permitted by this paragraph include, but are not limited to, canola, safflower, sunflower, corn, olive, soybean, peanut, or a blend of these oils, typically liquid at room temperature and are known for their positive cardiovascular benefit.
(c) For meals and food items sold as part of the free and reduced-price meal programs, a child development program is encouraged to comply with all of the following guidelines:
(1) Meet developmentally and programmatically appropriate meal pattern and the United States Department of Agriculture meal pattern.
(2) Not sell or serve a food item that has in any way been deep fried, par fried, or flash fried by a school, school district, or child development program.
(3) Not sell or serve a food item containing artificial trans fat. A food item contains artificial trans fat if it contains vegetable shortening, margarine, or any kind of hydrogenated or partially hydrogenated vegetable oil, unless the manufacturer’s documentation or the label required on the food, pursuant to applicable federal and state law, lists the trans fat content as less than 0.5 grams per serving.
(4) Not sell or serve a food item that, as part of the manufacturing process, has been deep fried, par fried, or flash fried in an oil or fat prohibited by this paragraph. Oils and fats prohibited by this paragraph include, but are not limited to, palm, coconut, palm kernel, and lard, typically solid at room temperature and are known to negatively impact cardiovascular health. Oils permitted by this provision include, but are not limited to, canola, safflower, sunflower, corn, olive, soybean, peanut, or a blend of these oils, typically liquid at room temperature and are known for their positive cardiovascular benefit.
(d) As a condition of receipt of funds pursuant to Section 49430.5, schools and school districts shall provide the department with an annual certification of compliance with the provisions of this section.
(e) This section shall become operative only upon an appropriation for its purposes in the annual Budget Act or another statute.
SEC. 5.
Section 49431 of the Education Code is amended to read:
49431.
(a) From the midnight before to 30 minutes after the end of the official schoolday, at each elementary school, the only competitive foods that may be sold to a pupil are fruit, vegetable, dairy, protein, or whole grain rich food items; foods with a fruit, vegetable, dairy, protein, or whole grain item as its first ingredient; or combination foods containing at least one-quarter cup of fruit or vegetable that meets the following standards:
(1) Not more than 35 percent of its total calories shall be from fat. This paragraph shall not apply to individually sold portions of nuts, nut butters, seeds, seed butters, reduced-fat cheese or part skim mozzarella cheese packaged for individual sale, fruits, vegetables that have not been deep fried, seafood, or a dried fruit and nut and seed combination.
(2) Less than 10 percent of its total calories shall be from saturated fat. This paragraph shall not apply to reduced-fat cheese or part skim mozzarella cheese packaged for individual sale, nuts, nut butters, seeds, seed butters, or a dried fruit and nut and seed combination.
(3) Not more than 35 percent of its total weight shall be composed of sugar, including naturally occurring and added sugar. This paragraph shall not apply to fruits, vegetables that have not been deep fried, or a dried fruit and nut and seed combination.
(4) Contains less than 0.5 grams of trans fat per serving.
(5) Contains not more than 200 milligrams of sodium per item, package, or container sold to a pupil.
(6) Contains not more than 200 calories per individual food item.
(b) An elementary school may permit the sale of food items that do not comply with subdivision (a) as part of a school fundraising event in either of the following circumstances:
(1) The sale of those items takes place off of and away from school premises.
(2) The sale of those items takes place on school premises at least one-half hour after the end of the schoolday.
(c) It is the intent of the Legislature that the governing board of a school district annually review its compliance with the nutrition standards described in this section and Section 49431.5.
SEC. 6.
Section 49431.2 of the Education Code is amended to read:
49431.2.
(a) From the midnight before to 30 minutes after the end of the official schoolday, at each middle school or high school, the only competitive snack foods that may be sold to a pupil are fruit, vegetable, dairy, protein, or whole grain rich food items; foods with a fruit, vegetable, dairy, protein, or whole grain item as its first ingredient; or combination foods containing at least one-quarter cup of fruit or vegetable that meet all of the following standards:
(1) Not more than 35 percent of its total calories shall be from fat. This paragraph does not apply to the sale of nuts, nut butters, seeds, seed butters, reduced-fat cheese or part skim mozzarella cheese packaged for individual sale, fruits, vegetables that have not been deep fried, seafood, or a dried fruit and nut and seed combination.
(2) Less than 10 percent of its total calories shall be from saturated fat. This paragraph shall not apply to reduced-fat cheese or part skim mozzarella cheese packaged for individual sale, nuts, nut butters, seeds, seed butters, or a dried fruit and nut and seed combination.
(3) Not more than 35 percent of its total weight shall be composed of sugar, including naturally occurring and added sugars. This paragraph shall not apply to the sale of fruits, vegetables that have not been deep fried, or a dried fruit and nut and seed combination.
(4) Contains less than 0.5 grams of trans fat per serving.
(5) Contains not more than 200 milligrams of sodium per item, package, or container sold to a pupil.
(6) Contains not more than 200 calories per individual food item.
(b) (1) From the midnight before to 30 minutes after the end of the official schoolday, at each middle school or high school, a competitive entrée sold by the district food service department the day, or the day after, it is served on the federal National School Lunch Program or federal School Breakfast Program menu shall meet the following standards:
(A) Contains not more than 400 calories per entrée item.
(B) Not more than 35 percent of its total calories shall be from fat.
(C) Contains less than 0.5 grams trans fat per serving.
(D) Is offered in the same or smaller portion sizes as in the federal National School Lunch Program or federal School Breakfast Program.
(2) From the midnight before to 30 minutes after the end of the official schoolday, at each middle school or high school, a competitive entrée sold by the district food service department but not the day, or the day after, it is served on the federal National School Lunch Program or federal School Breakfast Program menu, or a competitive entrée sold by any other entity, shall meet the following standards:
(A) Not more than 35 percent of its total calories shall be from fat.
(B) Less than 10 percent of its calories shall be from saturated fat.
(C) Not more than 35 percent of its total weight shall be composed of sugar, including naturally occurring and added sugar.
(D) Contains less than 0.5 grams of trans fat per serving.
(E) Contains not more than 480 milligrams of sodium.
(F) Contains not more than 350 calories.
(c) A middle school or high school may permit the sale of food items that do not comply with subdivision (a) or (b) in any of the following circumstances:
(1) The sale of those items takes place off of and away from school premises.
(2) The sale of those items takes place on school premises at least one-half hour after the end of the schoolday.
(d) It is the intent of the Legislature that the governing board of a school district annually review its compliance with the nutrition standards described in this section.
SEC. 7.
Section 49431.5 of the Education Code is amended to read:
49431.5.
(a) (1) From the midnight before to 30 minutes after the end of the official schoolday, at each elementary or middle school, the only competitive beverages that may be sold to a pupil are the following:
(A) Fruit-based drinks that are composed of no less than 50 percent fruit juice and have no added sweetener in a maximum serving size of 8 fluid ounces for elementary school or 12 fluid ounces for middle school.
(B) Vegetable-based drinks that are composed of no less than 50 percent vegetable juice and have no added sweetener in a maximum serving size of 8 fluid ounces for elementary school or 12 fluid ounces for middle school.
(C) Plain water or plain carbonated water.
(D) One-percent-fat unflavored milk, nonfat flavored or unflavored milk, soy milk, rice milk, and other similar nondairy milk in a maximum serving size of 8 fluid ounces for elementary school or 12 fluid ounces for middle school.
(E) A beverage shall not contain caffeine with the exception of trace amounts of naturally occurring caffeine substances.
(2) An elementary school or middle school may permit the sale of beverages that do not comply with paragraph (1) as part of a school fundraising event in either of the following circumstances:
(A) The sale of those items takes place off and away from the premises of the school.
(B) The sale of those items takes place on school premises at least one-half hour after the end of the schoolday.
(3) From the midnight before to 30 minutes after the end of the official schoolday, at each high school, the only competitive beverages that may be sold to a pupil are the following:
(A) Fruit-based drinks that are composed of no less than 50 percent fruit juice and have no added sweetener in a maximum serving size of 12 fluid ounces.
(B) Vegetable-based drinks that are composed of no less than 50 percent vegetable juice and have no added sweetener in a maximum serving size of 12 fluid ounces.
(C) Plain water or plain carbonated water.
(D) One-percent-fat unflavored milk, nonfat flavored or unflavored milk, soy milk, rice milk, and other similar nondairy milk in a maximum serving size of 12 fluid ounces.
(E) Flavored water or flavored carbonated water with no added sweetener that is labeled to contain less than 5 calories per 8 fluid ounces in a maximum serving size of 20 fluid ounces.
(F) Flavored water or flavored carbonated water with no added sweetener that is labeled to contain no more than 40 calories per 8 fluid ounces in a maximum serving size of 12 fluid ounces.
(G) Electrolyte replacement beverages that are labeled to contain less than 5 calories per 8 fluid ounces in a maximum serving size of 20 fluid ounces.
(H) Electrolyte replacement beverages that are labeled to contain no more than 40 calories per 8 fluid ounces in a maximum serving size of 12 fluid ounces.
(I) Beverages labeled or commonly referred to as sodas, colas, or soft drinks are not allowed.
(J) A beverage shall not contain caffeine with the exception of trace amounts of naturally occurring caffeine substances.
(4) A high school may permit the sale of beverages that do not comply with paragraph (3) as part of a school event if the sale of those items meets either of the following criteria:
(A) The sale of those items takes place off and away from the premises of the school.
(B) The sale of those items takes place on school premises at least one-half hour after the end of the schoolday.
(b) It is the intent of the Legislature that the governing board of a school district annually review its compliance with this section.
(c) Notwithstanding Article 3 (commencing with Section 33050) of Chapter 1 of Part 20 of Division 2, compliance with this section may not be waived.
SEC. 8.
Section 49431.7 of the Education Code is amended to read:
49431.7.
(a) From the midnight before to 30 minutes after the end of the official schoolday, a school or school district shall not sell to pupils enrolled in kindergarten, or any of grades 1 to 12, inclusive, food containing artificial trans fat, as defined in subdivision (b).
(b) For purposes of this section, a food contains artificial trans fat if a food contains vegetable shortening, margarine, or any kind of partially hydrogenated vegetable oil, unless the manufacturer’s documentation or the label required on the food, pursuant to applicable federal and state law, lists the trans fat content as less than 0.5 grams of trans fat per serving.
(c) This section shall not apply to food provided as part of a United States Department of Agriculture meal program.
SEC. 9.
Section 49432 of the Education Code is amended to read:
49432.
Every public school may post a summary of nutrition and physical activity laws and regulations, and shall inform the public about the content of the school’s local school wellness policy, established pursuant to the federal Healthy, Hunger-Free Kids Act of 2010 (Public Law 111-296). The department shall develop the summary of state law and regulations.
SEC. 10.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because this act implements a federal law or regulation and results in costs mandated by the federal government, within the meaning of Section 17556 of the Government Code.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

Summary: Existing federal law establishes nutritional standards for all food and beverages other than meals reimbursed under programs authorized by the Richard B. Russell National School Lunch Act and the Child Nutrition Act of 1966 available for sale to pupils on the school campus during the schoolday. Existing state law establishes nutritional standards for all food and beverages sold or served to pupils in elementary, middle, and high school. This bill would enact the Healthy Food, Healthy Student Act to update state law regarding school nutritional standards to conform to the federal standards. To the extent these changes would impose new duties on school districts and county offices of education, the bill would impose a state-mandated local program. Existing law requires every public school to post the school district’s nutrition and physical activity policies in public view within all school cafeterias or other central eating areas. This bill would, instead, require every public school to inform the public about the content of the school’s local school wellness policy, thereby imposing a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

An act to amend Sections 49430, 49430.5, 49430.7, 49431, 49431.2, 49431.5, 49431.7, and 49432 of the Education Code, relating to pupil nutrition.


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

SECTION 1.
Chapter 211 of the Statutes of 1919, as amended by Chapter 1223 of the Statutes of 1977, is repealed.
SEC. 2.
(a) For the purposes of this act, the following definitions shall apply:
(1) “Act” means Sections 2 to 10, inclusive, of the act enacting this section.
(2) “Commission” means the State Lands Commission.
(3) “Public trust doctrine” means the common law doctrine, as enunciated by the court in Marks v. Whitney (1971) 6 Cal.3d 251 and National Audubon Society v. Superior Court (1983) 33 Cal.3d 419 and other relevant judicial decisions, specifying the state’s authority as sovereign to exercise a continuous supervision and control over the navigable waters of the state, the lands underlying those waters, and nonnavigable tributaries to navigable waters, including the protection of maritime or water dependent commerce, navigation, and fisheries, and the preservation of lands in their natural state for scientific study, open space, wildlife habitat, and water-oriented recreation.
(4) “State” means the State of California.
(5) “Trustee” means the City of Albany, a municipal corporation.
(6) “Trust lands” means Parcel 1, Parcel 2, and Parcel 3, as described in Section 10 of this act, situated in the County of Alameda.
(7) “Trust revenues” means all revenues received from trust lands and trust assets.
(8) “Trust lands use plan” or “plan” means the trust lands use plan required to be submitted by the trustee to the commission pursuant to Section 4 of this act.
(9) “Trust lands use report” means the report of the trustee’s utilization of the trust lands required to be submitted by the trustee pursuant to Section 5 of this act.
(b) There is hereby granted in trust to the City of Albany, and to its successors, all of the rights, title, and interest of the state, held by the state by virtue of its sovereignty, in and to three parcels of land situated in the County of Alameda as described in Section 10 of this act.
(c) The Legislature finds and declares that the City of Albany intends that the lands granted in subdivision (b) shall be included as part of McLaughlin Eastshore State Park.
SEC. 3.
The trust grant specified in subdivision (b) of Section 2 of this act is subject to all of the following express conditions:
(a) The trust lands shall be held by the trustee in trust for the benefit of all the people of the state for purposes consistent with the public trust doctrine, including, but not limited to, maritime or water-dependent commerce, navigation, and fisheries, and preservation of the lands in their natural state for scientific study, open space, wildlife habitat, and water-oriented recreation.
(b) On and after January 1, 2022, the use of the trust lands shall conform to an approved trust lands use plan, as required by Section 4 of this act.
(c) The trustee shall not, at any time, grant, convey, give, or otherwise alienate or hypothecate the trust lands, or any part of the trust lands, to any person, firm, entity, or corporation for any purposes whatsoever.
(d) The trustee may lease the trust lands, or any part of the trust lands, for limited periods, not exceeding 49 years, for purposes consistent with the trust upon which those lands are held, as specified in subdivision (a). The trustee may collect and retain rents and other trust revenues from those leases, under rules and regulations adopted in accordance with subdivision (d) of Section 4 of this act, and in accordance with all of the following requirements:
(1) On and after January 1, 2022, all leases or agreements proposed or entered into by the trustee shall be consistent with the trust lands use plan approved by the commission, as required by Section 4 of this act. Any leases entered into prior to January 1, 2022, shall be consistent with the public trust doctrine and the terms of subdivision (a).
(2) The lease rental rates shall be for a fair annual rent.
(3) The lease shall be in the best interest of the state.
(e) When managing, conducting, operating, or controlling the trust lands or an improvement, betterment, or structure on the trust lands, the trustee or his or her successor shall not discriminate in rates, tolls, or charges for any use or service in connection with those actions and shall not discriminate against or unlawfully segregate any person or group of persons because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, in accordance with Article 1 (commencing with Section 12940) of Chapter 6 of Part 2.8 of Division 3 of Title 2 of the Government Code and other state antidiscrimination laws, for any use or service in connection with those actions.
(f) The state shall have the right to use, without charge, a transportation, landing, or storage improvement, betterment, or structure constructed upon the trust lands for a vessel or other watercraft or railroad owned or operated by, or under contract to, the state.
(g) The trust lands are subject to the express reservation and condition that the state may, at any time in the future, use those lands or any portion of those lands for highway purposes without compensation to the trustee or a person, firm, or public or private corporation claiming a right to those lands, except, if improvements have been placed with legal authority upon the property taken by the state for highway purposes, compensation shall be made to the person entitled to the value of the interest in the improvements taken or the damages to that interest.
(h) There is reserved to the people of the state the right to fish in the waters over the trust lands, with the right of convenient access to those waters over the trust lands for this purpose.
(i) There is excepted and reserved to the state all remains or artifacts of archaeological or historical significance and all deposits of minerals in the trust lands, including, but not limited to, all substances specified in Section 6407 of the Public Resources Code, and the right to prospect for, mine, and remove those deposits from the lands.
(j) Prior to entering into a lease, franchise, or agreement concerning the trust lands, the governing body of the trustee shall first adopt a resolution declaring its intention to take that action. The resolution shall describe the lands or improvements that are the subject of the lease, franchise, or agreement in such a manner as to identify them accurately and shall specify the minimum rental or other consideration and the other terms and conditions of the lease, franchise, or agreement. The resolution shall be submitted to the commission prior to entering into a lease, franchise, or agreement.
(k) The trustee shall reimburse the commission for all expenses incurred in the administration of this act, including periodic audits or investigations.
SEC. 4.
(a) On or before January 1, 2022, the trustee shall submit to the commission a trust lands use plan describing any proposed development, preservation, or other use of the trust lands. The trustee shall thereafter submit to the commission for approval all changes or amendments to, or extensions of, the trust lands use plan. The trustee may apply to the commission for, and the commission may approve, reasonable extensions of time to meet this deadline.
(b) The commission shall review with reasonable promptness the trust lands use plan submitted by the trustee and any changes or amendments to determine whether they are consistent with the public trust doctrine and the requirements of this act. Based upon its review, the commission shall either approve or disapprove the plan. If the commission disapproves the plan, the commission shall notify the trustee and the trustee shall submit a revised plan to the commission no later than 180 days after the date of notice of disapproval. If the commission determines the revised plan is inconsistent with the public trust doctrine or the requirements of this act, all rights, title, and interest of the trustee in and to the trust lands and improvements on the trust lands shall revert to the state.
(c) The trust lands use plan shall consist of a plan, program, or other document that includes all of the following:
(1) A general description of the type of uses planned or proposed for the trust lands. The location of these land uses shall be shown on a map or aerial photograph.
(2) The projected statewide benefit to be derived from the planned or proposed uses of the trust lands, including, but not limited to, financial benefit.
(3) The proposed method of financing the planned or proposed uses of the trust lands, including estimated capital costs, annual operating costs, and anticipated annual trust revenues.
(4) An estimated timetable for the implementation of the trust lands use plan or each phase of the plan.
(5) A description of how the trustee proposes to protect and preserve natural and manmade resources and facilities located on trust lands and operated in connection with the use of the trust lands, including, but not limited to, addressing impacts from sea level rise.
(d) The governing body of the trustee shall also submit to the commission, as part of the trust lands use plan, for its approval procedures, rules, and regulations to govern the use of or development of the trust lands. These rules and regulations shall include, but are not limited to, lease rates, the basis upon which the rates are established, lease terms and conditions, provisions for renegotiation of rates and terms and assignments, and any other information as may be required by the commission.
(e) Upon request, the trustee shall submit to the commission a copy of all leases and agreements entered into, renewed, or renegotiated.
SEC. 5.
(a) On or before September 30, 2022, and on or before September 30 of every succeeding fifth year, the trustee shall submit a report of its utilization of the trust lands for each immediately preceding five-calendar-year period ending with June 30 of the calendar year in which the report is required to be submitted.
(b) The report required by this section shall include all of the following:
(1) A general description of the uses to which the trust lands have been placed during the period covered by the report.
(2) A list of the holders of leases or permits that have been granted or issued by the trustee. The list shall specify all of the following, as to each holder:
(A) The use to which the trust lands have been placed by the owner or holder.
(B) The consideration provided for in each lease or permit and the consideration actually received by the trustee for the lease or permit granted or issued.
(C) An enumeration of the restrictions that the trustee has placed on the use of the trust lands, and each area of the trust lands, for the period covered by the report.
(c) A report shall not be required if the utilization of the trust lands within the immediately preceding five-calendar-year period is identical to the utilization of the trust lands as stated in a previously submitted report. If a new report is not submitted, the trustee shall submit a letter to the commission stating that its utilization of the trust lands has not changed during the immediately preceding five-calendar-year period. The letter required in this section shall also include the name and date of the utilization report that contains the applicable uses of the trust lands.
SEC. 6.
(a) The trustee shall demonstrate good faith in carrying out the provisions of its trust lands use plan and amending it when necessary in accordance with subdivision (a) of Section 4 of this act.
(b) If the commission determines that the trustee has substantially failed to improve, restore, preserve, or maintain the trust lands, as required by the trust lands use plan, or has unreasonably delayed implementation of the trust lands use plan, all rights, title, and interest of the trustee in and to the trust lands and improvements on the trust lands shall revert to the state.
SEC. 7.
(a) (1) The trustee shall establish and maintain accounting procedures, in accordance with generally accepted accounting principles, providing accurate records of all revenues received from the trust lands and trust assets and of all expenditures of those revenues.
(2) All trust revenues received from trust lands and trust assets shall be expended only for those uses and purposes consistent with this act. The trustee shall provide for the segregation of the revenues derived from the use of the trust lands by the trustee from other city municipal funds, so as to ensure that trust revenues are only expended to enhance or maintain the trust lands in accordance with the uses and purposes for which the trust lands are held.
(3) Trust revenues may be expended to acquire appropriate upland properties to benefit and enhance the trust, subject to a determination by the commission that this acquisition is consistent with this act and in the best interests of the state. Property acquired with these trust revenues shall be considered an asset of the trust and subject to the terms and conditions of this act.
(b) The trustee shall comply with Section 6306 of the Public Resources Code.
(c) (1) Before expending trust revenues for any single capital improvement on the trust lands involving an amount in excess of two hundred fifty thousand dollars ($250,000) in the aggregate, the trustee shall file with the commission a detailed description of the capital improvement not less than 120 days prior to the time of any disbursement of trust revenues for, or in connection with, that capital improvement.
(2) Within 120 days after the time of a filing specified in paragraph (1), the commission shall determine whether the capital improvement is in the statewide interest and benefit and, if the filing is made on or before December 1, 2021, whether it is consistent with subdivision (a) of Section 3 of this act or, if the filing is made on or after January 1, 2022, whether it is consistent with the trust lands use plan. The commission may request the opinion of the Attorney General on the matter, and if the commission makes this request, the Attorney General shall deliver a copy of the opinion to the trustee with the notice of its determination.
(3) If the commission notifies the trustee that the capital improvement is not authorized, the trustee shall not disburse any trust revenues for, or in connection with, the capital improvement, unless it is determined to be authorized by a final order or judgment of a court of competent jurisdiction.
(4) The trustee may bring suit against the state to secure an order or judgment for purposes of paragraph (3). The suit shall have priority over all other civil matters. Service shall be made upon the executive officer of the commission and the Attorney General, and the Attorney General shall defend the state in that suit. If judgment is given against the state in the suit, no costs may be recovered.
(d) On June 30, 2021, and at the end of every fiscal year thereafter, 20 percent of all gross revenue generated from the trust lands shall be transmitted to the commission. Of this amount transmitted, the commission shall allocate 80 percent to the Treasurer for deposit in the General Fund and 20 percent to the Treasurer for deposit in the Land Bank Fund, created pursuant to Section 8610 of the Public Resources Code, for expenditure pursuant to the Kapiloff Land Bank Act (Division 7 (commencing with Section 8600) of the Public Resources Code) for management of the commission’s granted lands program.
(e) The commission may, from time to time, institute a formal inquiry to determine that the terms and conditions of this act, and amendments to this act, have been complied with and that all other applicable provisions of law concerning the trust lands are being complied with in good faith.
(f) The commission shall approve in advance of expenditure any reimbursement for expenditures of nontrust revenues for improvements made to the trust or, if not approved, those expenditures shall be deemed a gift to the trust.
SEC. 8.
(a) If the commission finds that the trustee has violated or is about to violate the terms of its trust grant or any other principle of law relating to its obligation under the public trust doctrine or under this act, the commission shall notify the trustee of the violation.
(b) The trustee shall have 30 days from the receipt of a notice of violation to conform to the terms of its grant and the principles of law under the public trust doctrine. If the trustee fails or refuses to take those actions, the commission may bring an action to enforce the rights of the state and people as settlor beneficiary of the public trust doctrine.
(c) The Attorney General shall represent the state in all actions or proceedings taken pursuant to this section. If the judgment is given against the state in the action or proceeding, no costs shall be recovered from the state and people.
SEC. 9.
The requirements of Section 6359 of the Public Resources Code do not apply to the trust lands granted pursuant to this act.
SEC. 10.
The trust lands granted in Section 3 are three parcels of tide and submerged lands situated in and adjacent to the bed of San Francisco Bay, Alameda County, State of California, more particularly described as follows:
PARCEL 1
COMMENCING at point “A” as shown on the Map of the Grant to the City of Albany, recorded July 24, 1963, in Book 43 of Maps, page 12A, Alameda County Records, said point “A” having California Zone 2 coordinates of x = 1,469,703.82 feet and y = 511,851.40 feet, thence along the northerly boundary of said Grant S 74° 21’ 53” E, 2573.92 feet to point “B” as shown on said map and being the TRUE POINT OF BEGINNING, thence continuing along the boundary of said grant the following ten courses:
(1) N 01° 08’ 07” E, 661.08 feet;
(2) S 88° 51’ 53” E, 661.58 feet;
(3) N 01° 08’ 07” E, 876.29 feet;
(4) N 75° 19’ 34” E, 1636.95 feet;
(5) S 88° 51’ 53” E, 409.57 feet;
(6) S 01° 08’ 07” W, 1321.66 feet;
(7) N 88° 51’ 53” W, 661.05 feet;
(8) S 01° 08’ 07” W, 1322.17 feet;
(9) N 88° 51’ 53” W, 1550.05 feet;
(10) S 32° 12’ 53” E, 1582.80 feet;
thence N 88° 51’ 53” W, 1305.22 feet; thence N 01° 08’ 07” E, 1983.26 feet to the True Point of Beginning.
Coordinates, bearings, and distances used in the above description are based on the California Coordinate System, Zone 2.
PARCEL 2
BEGINNING at Point “J” as shown on said Map of Grant to the City of Albany, recorded July 24, 1963, said point “J” having California Zone 2 coordinates of x = 1,474,154.14 feet and y = 510,458.00 feet, thence along the boundary of said grant the following two courses:
(1) N 88° 51’ 53” W, 1550.05 feet;
(2) S 32° 12’ 53” E, 1582.80 feet;
thence N 28° 20’ 17” E, 1487.26 feet to the point of beginning. Coordinates, bearings, and distances used in the above description are based on the California Coordinate System, Zone 2.
PARCEL 3
All of that certain parcel of land described as Parcel 1 in deed to the City of Albany, recorded January 15, 1942, in Liber 4159, page 296, Alameda County Records.
SEC. 11.
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 are the result of a program for which legislative authority was requested by that local agency or school district, within the meaning of Section 17556 of the Government Code and Section 6 of Article XIII B of the California Constitution.

Summary: Existing law grants in trust to the City of Albany certain designated tidelands and submerged lands, both filled and unfilled, for specified uses. The grant, among other things, requires that those lands be used in conformity with the Albany Waterfront Plan and be improved in accordance with the plan on or before January 1, 1988, or title therein shall revert to the state. Existing law imposes various requirements regarding public rights in the granted lands, leasing of lands by the city, management and disposition of revenues from the lands, and the determination of boundaries of the lands granted that are subject to the jurisdiction of the San Francisco Bay Conservation and Development Commission. Existing law requires 85 of excess trust revenues, as specified, to be transmitted to the Treasurer and deposited in the General Fund. This bill would delete those provisions and instead require that, on and after January 1, 2022, the use of those trust lands, as described, conform to an approved trust lands use plan, prescribed by the bill, and all leases or agreements proposed or entered into by the City of Albany, as trustee of those lands, also be consistent with the public trust doctrine, as defined, and conform to the plan. The bill would require the trustee, on or before September 30, 2022, and on or before September 30 of every succeeding 5th year thereafter, to submit a report to the State Lands Commission. By imposing new duties on a local government with regard to providing for the use and management of those trust lands, the bill would impose a state-mandated local program. Existing law, the Kapiloff Land Bank Act, creates the Land Bank Fund and continuously appropriates money in the fund, subject to a statutory trust, to the State Lands Commission, acting as the Land Bank Trustee, to acquire real property or any interest in real property for the purposes of public trust settlements. The bill would require on June 30, 2021, and at the end of every fiscal year thereafter, that 20 of all gross revenue generated from the City of Albany trust lands be transmitted to the commission and, of this amount transmitted, would require the commission to allocate 80 to the Treasurer for deposit in the General Fund and 20 for deposit in the Land Bank Fund for expenditure by the commission pursuant to the act, thereby making an appropriation. 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 repeal Chapter 211 of the Statutes of 1919, relating to tidelands and submerged lands in the Bay of San Francisco, and making an appropriation therefor.


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

SECTION 1.
Section 2220.05 of the Business and Professions Code is amended to read:
2220.05.
(a) In order to ensure that its resources are maximized for the protection of the public, the Medical Board of California shall prioritize its investigative and prosecutorial resources to ensure that physicians and surgeons representing the greatest threat of harm are identified and disciplined expeditiously. Cases involving any of the following allegations shall be handled on a priority basis, as follows, with the highest priority being given to cases in the first paragraph:
(1) Gross negligence, incompetence, or repeated negligent acts that involve death or serious bodily injury to one or more patients, such that the physician and surgeon represents a danger to the public.
(2) Drug or alcohol abuse by a physician and surgeon involving death or serious bodily injury to a patient.
(3) Repeated acts of clearly excessive prescribing, furnishing, or administering of controlled substances, or repeated acts of prescribing, dispensing, or furnishing of controlled substances without a good faith prior examination of the patient and medical reason therefor. However, in no event shall a physician and surgeon prescribing, furnishing, or administering controlled substances for intractable pain consistent with lawful prescribing, including, but not limited to, Sections 725, 2241.5, and 2241.6 of this code and Sections 11159.2 and 124961 of the Health and Safety Code, be prosecuted for excessive prescribing and prompt review of the applicability of these provisions shall be made in any complaint that may implicate these provisions.
(4) Repeated acts of clearly excessive recommending of cannabis to patients for medical purposes, or repeated acts of recommending cannabis to patients for medical purposes without a good faith prior examination of the patient and a medical reason for the recommendation.
(5) Sexual misconduct with one or more patients during a course of treatment or an examination.
(6) Practicing medicine while under the influence of drugs or alcohol.
(7) Repeated acts of clearly excessive prescribing, furnishing, or administering psychotropic medications to a minor without a good faith prior examination of the patient and medical reason therefor.
(b) The board may by regulation prioritize cases involving an allegation of conduct that is not described in subdivision (a). Those cases prioritized by regulation shall not be assigned a priority equal to or higher than the priorities established in subdivision (a).
(c) The Medical Board of California shall indicate in its annual report mandated by Section 2312 the number of temporary restraining orders, interim suspension orders, and disciplinary actions that are taken in each priority category specified in subdivisions (a) and (b).
SEC. 2.
Section 2245 is added to the Business and Professions Code, to read:
2245.
(a) The Medical Board of California on a quarterly basis shall review the data provided pursuant to Section 14028 of the Welfare and Institutions Code by the State Department of Health Care Services and the State Department of Social Services in order to determine if any potential violations of law or excessive prescribing of psychotropic medications inconsistent with the standard of care exist and, if warranted, shall conduct an investigation.
(b) The State Department of Health Care Services shall disseminate the treatment guidelines on an annual basis through its existing communications with Medi-Cal providers, such as the department’s Internet Web site or provider bulletins.
(c) If, after an investigation, the Medical Board of California concludes that there was a violation of law, the board shall take disciplinary action, as appropriate, as authorized by Section 2227.
(d) If, after an investigation, the Medical Board of California concludes that there was excessive prescribing of psychotropic medications inconsistent with the standard of care, the board shall take action, as appropriate, as authorized by Section 2227.
(e) (1) Notwithstanding Section 10231.5 of the Government Code, commencing July 1, 2017, the Medical Board of California shall report annually to the Legislature, the State Department of Health Care Services, and the State Department of Social Services the results of the analysis of data described in Section 14028 of the Welfare and Institutions Code.
(2) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
(f) On or before January 1, 2022, and in conjunction with the consultation with the State Department of Social Services and the State Department of Health Care Services required by subdivision (a) of Section 14028 of the Welfare and Institutions Code, the Medical Board of California shall conduct an internal review of its data review, investigative, and disciplinary activities undertaken pursuant to this section for the purpose of determining the efficacy of those activities and shall revise its procedures relating to those activities, if determined to be necessary.
(g) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2027, deletes or extends that date.
SEC. 3.
Section 14028 is added to the Welfare and Institutions Code, to read:
14028.
(a) (1) In order to ensure appropriate oversight of psychotropic medications prescribed for children, pursuant to Section 2245 of the Business and Professions Code, the department and the State Department of Social Services, pursuant to a data-sharing agreement that shall meet the requirements of all applicable state and federal laws and regulations, shall provide the Medical Board of California with information regarding Medi-Cal physicians and their prescribing patterns of psychotropic medications and related services for individuals described in subparagraphs (B) and (C) of paragraph (1) of subdivision (c). The data concerning psychotropic medications and related services shall be drawn from existing data sources maintained by the departments. Every five years, the Medical Board of California, the department, and the State Department of Social Services shall consult and revise the methodology, if determined to be necessary.
(2) At minimum, the department, on an annual basis, shall share with the Medical Board of California data, including, but not limited to, pharmacy claims data for all foster children who are or have been on three or more psychotropic medications for 90 days or more. Prior to the release of this data, personal identifiers such as name, date of birth, address, and social security number shall be removed and a unique identifier shall be submitted. For each foster child who falls into these categories, the department shall submit the following information to the board:
(A) A list of the psychotropic medications prescribed.
(B) The start and stop dates, if any, for each psychotropic medication prescribed.
(C) The prescriber’s name and contact information.
(D) The child’s or adolescent’s year of birth.
(E) Any other information that is deidentified and necessary to the Medical Board of California to allow the board to exercise its statutory authority as an oversight entity.
(F) The unit and quantity of the medication and the number of days’ supply of the medication.
(b) The Medical Board of California shall contract for consulting services from, if available, a psychiatrist who has expertise and specializes in pediatric care for the purpose of reviewing the data provided to the board pursuant to subdivision (a). The consultant shall consider the treatment guidelines published by the department and the State Department of Social Services when assessing prescribing patterns.
(c) The Medical Board of California, pursuant to subdivision (a), shall analyze prescribing patterns by population for both of the following:
(1) Children adjudged as dependent children under Section 300 and placed in foster care.
(2) A minor adjudged a ward of the court under Section 601 or 602 who has been removed from the physical custody of the parent and placed into foster care.
(d) This section shall remain in effect only until January 1, 2027, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2027, deletes or extends that date.

Summary: Existing law, the Medical Practice Act, among other things provides for the licensure and regulation of physicians and surgeons by the Medical Board of California. Under existing law, the board’s responsibilities include enforcement of the disciplinary and criminal provisions of the act. Existing law provides for the Medi-Cal program, which is administered by the State Department of Health Care Services, under which qualified low-income individuals receive health care services, including early and periodic screening, diagnosis, and treatment for any individual under 21 years of age. The Medi-Cal program is, in part, governed and funded by federal Medicaid program provisions. Existing law establishes a statewide system of child welfare services, administered by the State Department of Social Services, with the intent that all children are entitled to be safe and free from abuse and neglect. This bill would, until January 1, 2027, require the State Department of Health Care Services and the State Department of Social Services, pursuant to a specified data-sharing agreement, to provide the Medical Board of California with information regarding Medi-Cal physicians and their prescribing patterns of psychotropic medications and related services for specified children and minors placed in foster care using data provided by the State Department of Health Care Services and the State Department of Social Services, as prescribed. The bill would require that the data concerning psychotropic medications and related services be drawn from existing data sources maintained by the departments and shared pursuant to a data-sharing agreement and would require that, every 5 years, the board, the State Department of Health Care Services, and the State Department of Social Services consult and revise the methodology, if determined to be necessary. The bill would require the board to contract for consulting services from, if available, a psychiatrist who has expertise and specializes in pediatric care for the purpose of reviewing the data provided to the board. Commencing July 1, 2017, the bill would require the board to report annually to the Legislature, the State Department of Health Care Services, and the State Department of Social Services the results of the analysis of the data. The bill would, until January 1, 2027, require the board to review the data in order to determine if any potential violations of law or excessive prescribing of psychotropic medications inconsistent with the standard of care exist and conduct an investigation, if warranted, and would require the board to take disciplinary action, as specified. The bill would require the board, on or before January 1, 2022, to conduct an internal review of those activities and to revise procedures relating to those activities, if determined to be necessary. The bill would require the State Department of Health Care Services to disseminate treatment guidelines on an annual basis through its existing communications with Medi-Cal providers, as specified. The bill would require the board to handle on a priority basis investigations of repeated acts of excessive prescribing, furnishing, or administering psychotropic medications to a minor, as specified.

An act to amend Section 2220.05 of, and to add and repeal Section 2245 of, the Business and Professions Code, and to add and repeal Section 14028 of the Welfare and Institutions Code, relating to Medi-Cal.


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

SECTION 1.
Section 4603.2 of the Labor Code is amended to read:
4603.2.
(a) (1) Upon selecting a physician pursuant to Section 4600, the employee or physician shall notify the employer of the name and address, including the name of the medical group, if applicable, of the physician. The physician shall submit a report to the employer within five working days from the date of the initial examination, as required by Section 6409, and shall submit periodic reports at intervals that may be prescribed by rules and regulations adopted by the administrative director.
(2) If the employer objects to the employee’s selection of the physician on the grounds that the physician is not within the medical provider network used by the employer, and there is a final determination that the employee was entitled to select the physician pursuant to Section 4600, the employee shall be entitled to continue treatment with that physician at the employer’s expense in accordance with this division, notwithstanding Section 4616.2. The employer shall be required to pay from the date of the initial examination if the physician’s report was submitted within five working days of the initial examination. If the physician’s report was submitted more than five working days after the initial examination, the employer and the employee shall not be required to pay for any services prior to the date the physician’s report was submitted.
(3) If the employer objects to the employee’s selection of the physician on the grounds that the physician is not within the medical provider network used by the employer, and there is a final determination that the employee was not entitled to select a physician outside of the medical provider network, the employer shall have no liability for treatment provided by or at the direction of that physician or for any consequences of the treatment obtained outside the network.
(b) (1) (A) A provider of services provided pursuant to Section 4600, including, but not limited to, physicians, hospitals, pharmacies, interpreters, copy services, transportation services, and home health care services, shall submit its request for payment with an itemization of services provided and the charge for each service, a copy of all reports showing the services performed, the prescription or referral from the primary treating physician if the services were performed by a person other than the primary treating physician, and any evidence of authorization for the services that may have been received. This section does not prohibit an employer, insurer, or third-party claims administrator from establishing, through written agreement, an alternative manual or electronic request for payment with providers for services provided pursuant to Section 4600.
(B) Effective for services provided on or after January 1, 2017, the request for payment with an itemization of services provided and the charge for each service shall be submitted to the employer within 12 months of the date of service or within 12 months of the date of discharge for inpatient facility services. The administrative director shall adopt rules to implement the 12-month limitation period. The rules shall define circumstances that constitute good cause for an exception to the 12-month period, including provisions to address the circumstances of a nonoccupational injury or illness later found to be a compensable injury or illness. The request for payment is barred unless timely submitted.
(C) Notwithstanding the requirements of this paragraph, a copy of the prescription shall not be required with a request for payment for pharmacy services, unless the provider of services has entered into a written agreement, as provided in this paragraph, that requires a copy of a prescription for a pharmacy service.
(D) This section does not preclude an employer, insurer, pharmacy benefits manager, or third-party claims administrator from requesting a copy of the prescription during a review of any records of prescription drugs that were dispensed by a pharmacy.
(2) Except as provided in subdivision (d) of Section 4603.4, or under contracts authorized under Section 5307.11, payment for medical treatment provided or prescribed by the treating physician selected by the employee or designated by the employer shall be made at reasonable maximum amounts in the official medical fee schedule, pursuant to Section 5307.1, in effect on the date of service. Payments shall be made by the employer with an explanation of review pursuant to Section 4603.3 within 45 days after receipt of each separate, itemization of medical services provided, together with any required reports and any written authorization for services that may have been received by the physician. If the itemization or a portion thereof is contested, denied, or considered incomplete, the physician shall be notified, in the explanation of review, that the itemization is contested, denied, or considered incomplete, within 30 days after receipt of the itemization by the employer. An explanation of review that states an itemization is incomplete shall also state all additional information required to make a decision. A properly documented list of services provided and not paid at the rates then in effect under Section 5307.1 within the 45-day period shall be paid at the rates then in effect and increased by 15 percent, together with interest at the same rate as judgments in civil actions retroactive to the date of receipt of the itemization, unless the employer does both of the following:
(A) Pays the provider at the rates in effect within the 45-day period.
(B) Advises, in an explanation of review pursuant to Section 4603.3, the physician, or another provider of the items being contested, the reasons for contesting these items, and the remedies available to the physician or the other provider if he or she disagrees. In the case of an itemization that includes services provided by a hospital, outpatient surgery center, or independent diagnostic facility, advice that a request has been made for an audit of the itemization shall satisfy the requirements of this paragraph.
An employer’s liability to a physician or another provider under this section for delayed payments shall not affect its liability to an employee under Section 5814 or any other provision of this division.
(3) Notwithstanding paragraph (1), if the employer is a governmental entity, payment for medical treatment provided or prescribed by the treating physician selected by the employee or designated by the employer shall be made within 60 days after receipt of each separate itemization, together with any required reports and any written authorization for services that may have been received by the physician.
(4) Duplicate submissions of medical services itemizations, for which an explanation of review was previously provided, shall require no further or additional notification or objection by the employer to the medical provider and shall not subject the employer to any additional penalties or interest pursuant to this section for failing to respond to the duplicate submission. This paragraph shall apply only to duplicate submissions and does not apply to any other penalties or interest that may be applicable to the original submission.
(c) Interest or an increase in compensation paid by an insurer pursuant to this section shall be treated in the same manner as an increase in compensation under subdivision (d) of Section 4650 for the purposes of any classification of risks and premium rates, and any system of merit rating approved or issued pursuant to Article 2 (commencing with Section 11730) of Chapter 3 of Part 3 of Division 2 of the Insurance Code.
(d) (1) Whenever an employer or insurer employs an individual or contracts with an entity to conduct a review of an itemization submitted by a physician or medical provider, the employer or insurer shall make available to that individual or entity all documentation submitted together with that itemization by the physician or medical provider. When an individual or entity conducting an itemization review determines that additional information or documentation is necessary to review the itemization, the individual or entity shall contact the claims administrator or insurer to obtain the necessary information or documentation that was submitted by the physician or medical provider pursuant to subdivision (b).
(2) An individual or entity reviewing an itemization of service submitted by a physician or medical provider shall not alter the procedure codes listed or recommend reduction of the amount of the payment unless the documentation submitted by the physician or medical provider with the itemization of service has been reviewed by that individual or entity. If the reviewer does not recommend payment for services as itemized by the physician or medical provider, the explanation of review shall provide the physician or medical provider with a specific explanation as to why the reviewer altered the procedure code or changed other parts of the itemization and the specific deficiency in the itemization or documentation that caused the reviewer to conclude that the altered procedure code or amount recommended for payment more accurately represents the service performed.
(e) (1) If the provider disputes the amount paid, the provider may request a second review within 90 days of service of the explanation of review or an order of the appeals board resolving the threshold issue as stated in the explanation of review pursuant to paragraph (5) of subdivision (a) of Section 4603.3. The request for a second review shall be submitted to the employer on a form prescribed by the administrative director and shall include all of the following:
(A) The date of the explanation of review and the claim number or other unique identifying number provided on the explanation of review.
(B) The item and amount in dispute.
(C) The additional payment requested and the reason therefor.
(D) The additional information provided in response to a request in the first explanation of review or any other additional information provided in support of the additional payment requested.
(2) If the only dispute is the amount of payment and the provider does not request a second review within 90 days, the bill shall be deemed satisfied and neither the employer nor the employee shall be liable for any further payment.
(3) Within 14 days of a request for second review, the employer shall respond with a final written determination on each of the items or amounts in dispute. Payment of any balance not in dispute shall be made within 21 days of receipt of the request for second review. This time limit may be extended by mutual written agreement.
(4) If the provider contests the amount paid, after receipt of the second review, the provider shall request an independent bill review as provided for in Section 4603.6.
(f) Except as provided in paragraph (4) of subdivision (e), the appeals board shall have jurisdiction over disputes arising out of this subdivision pursuant to Section 5304.
SEC. 2.
Section 4603.4 of the Labor Code is amended to read:
4603.4.
(a) The administrative director shall adopt rules and regulations to do all of the following:
(1) Ensure that all health care providers and facilities submit medical bills for payment on standardized forms.
(2) Require acceptance by employers of electronic claims for payment of medical services.
(3) Ensure confidentiality of medical information submitted on electronic claims for payment of medical services.
(4) Require the timely submission of paper or electronic bills in conformity with subparagraph (B) of paragraph (1) of subdivision (b) of Section 4603.2.
(b) To the extent feasible, standards adopted pursuant to subdivision (a) shall be consistent with existing standards under the federal Health Insurance Portability and Accountability Act of 1996.
(c) Require all employers to accept electronic claims for payment of medical services.
(d) Payment for medical treatment provided or prescribed by the treating physician selected by the employee or designated by the employer shall be made with an explanation of review by the employer within 15 working days after electronic receipt of an itemized electronic billing for services at or below the maximum fees provided in the official medical fee schedule adopted pursuant to Section 5307.1. If the billing is contested, denied, or incomplete, payment shall be made with an explanation of review of any uncontested amounts within 15 working days after electronic receipt of the billing, and payment of the balance shall be made in accordance with Section 4603.2.
SEC. 3.
Section 4625 of the Labor Code is amended to read:
4625.
(a) Effective for services provided on or after January 1, 2017, all bills for medical-legal evaluation or medical-legal expense shall be submitted to the employer within 12 months of the date of service in the manner prescribed by the administrative director. The administrative director shall adopt rules to define circumstances that constitute good cause for an exception to the 12-month period. Bills for medical-legal charges are barred unless timely submitted.
(b) Notwithstanding subdivision (d) of Section 4628, all charges for medical-legal expenses for which the employer is liable that are not in excess of those set forth in the official medical-legal fee schedule adopted pursuant to Section 5307.6 shall be paid promptly pursuant to Section 4622.
(c) If the employer contests the reasonableness of the charges it has paid, the employer may file a petition with the appeals board to obtain reimbursement of the charges from the physician that are considered to be unreasonable.

Summary: Existing law establishes a workers’ compensation system, administered by the Administrative Director of the Division of Workers’ Compensation, to compensate an employee for injuries sustained in the course of his or her employment. Existing law requires the employer to provide medical, surgical, chiropractic, acupuncture, and hospital treatment, as specified, that is reasonably required to cure or relieve the injured worker from the effects of his or her injury. Existing law requires a provider of those services to submit, among other documents, its request for payment with an itemization of services provided and the charge for each service. Existing law also requires the employer to reimburse the employee for his or her medical-legal expenses, as specified. This bill would require, effective for services on or after January 1, 2017, that requests for payment with an itemization of services provided and the charge for each service be submitted to the employer within 12 months of the date of service or within 12 months of the date of discharge for inpatient facility services. The bill would also require, effective for services provided on or after January 1, 2017, that all bills for medical-legal evaluation or medical-legal expense be submitted to the employer within 12 months of the date of service in the manner prescribed by the administrative director. The bill would provide that requests for payment and bills for medical-legal charges are barred unless timely submitted. The bill would require the administrative director to adopt rules to implement the 12-month limitation period, as specified.

An act to amend Sections 4603.2, 4603.4, and 4625 of the Labor Code, relating to workers’ compensation.


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

SECTION 1.
Article 14 (commencing with Section 2340) is added to Chapter 5 of Division 2 of the Business and Professions Code, to read:
Article  14. Physician and Surgeon Health and Wellness Program
2340.
(a) The board may establish a Physician and Surgeon Health and Wellness Program for the early identification of, and appropriate interventions to support a physician and surgeon in his or her rehabilitation from, substance abuse to ensure that the physician and surgeon remains able to practice medicine in a manner that will not endanger the public health and safety and that will maintain the integrity of the medical profession. The program, if established, shall aid a physician and surgeon with substance abuse issues impacting his or her ability to practice medicine.
(b) For the purposes of this article, “program” shall mean the Physician and Surgeon Health and Wellness Program.
(c) If the board establishes a program, the program shall meet the requirements of this article.
2340.2.
If the board establishes a program, the program shall do all of the following:
(a) Provide for the education of all licensed physicians and surgeons with respect to the recognition and prevention of physical, emotional, and psychological problems.
(b) Offer assistance to a physician and surgeon in identifying substance abuse problems.
(c) Evaluate the extent of substance abuse problems and refer the physician and surgeon to the appropriate treatment by executing a written agreement with a physician and surgeon participant.
(d) Provide for the confidential participation by a physician and surgeon with substance abuse issues who does not have a restriction on his or her practice related to those substance abuse issues. If an investigation of a physician and surgeon occurs after the physician and surgeon has enrolled in the program, the board may inquire of the program whether the physician and surgeon is enrolled in the program and the program shall respond accordingly.
(e) Comply with the Uniform Standards Regarding Substance-Abusing Healing Arts Licensees as adopted by the Substance Abuse Coordination Committee of the department pursuant to Section 315.
2340.4.
(a) If the board establishes a program, the board shall contract for the program’s administration with a private third-party independent administering entity pursuant to a request for proposals. The process for procuring the services for the program shall be administered by the board pursuant to Article 4 (commencing with Section 10335) of Chapter 2 of Part 2 of Division 2 of the Public Contract Code. However, Section 10425 of the Public Contract Code shall not apply to this subdivision.
(b) The administering entity shall have expertise and experience in the areas of substance or alcohol abuse in healing arts professionals.
(c) The administering entity shall identify and use a statewide treatment resource network that includes treatment and screening programs and support groups and shall establish a process for evaluating the effectiveness of those programs.
(d) The administering entity shall provide counseling and support for the physician and surgeon and for the family of any physician and surgeon referred for treatment.
(e) The administering entity shall make their services available to all licensed California physicians and surgeons, including those who self-refer to the program.
(f) The administering entity shall have a system for immediately reporting a physician and surgeon, including, but not limited to, a physician and surgeon who withdraws or is terminated from the program, to the board. This system shall ensure absolute confidentiality in the communication to the board. The administering entity shall not provide this information to any other individual or entity unless authorized by the participating physician and surgeon or this article.
(g) The contract entered into pursuant to this section shall also require the administering entity to do the following:
(1) Provide regular communication to the board, including annual reports to the board with program statistics, including, but not limited to, the number of participants currently in the program, the number of participants referred by the board as a condition of probation, the number of participants who have successfully completed their agreement period, and the number of participants terminated from the program. In making reports, the administering entity shall not disclose any personally identifiable information relating to any participant.
(2) Submit to periodic audits and inspections of all operations, records, and management related to the program to ensure compliance with the requirements of this article and its implementing rules and regulations. Any audit conducted pursuant to this section shall maintain the confidentiality of all records reviewed and information obtained in the course of conducting the audit and shall not disclose any information identifying a program participant.
(h) If the board determines the administering entity is not in compliance with the requirements of the program or contract entered into with the board, the board may terminate the contract.
2340.6.
(a) A physician and surgeon shall, as a condition of participation in the program, enter into an individual agreement with the program and agree to pay expenses related to treatment, monitoring, laboratory tests, and other activities specified in the participant’s written agreement. The agreement shall include all of the following:
(1) A jointly agreed-upon plan and mandatory conditions and procedures to monitor compliance with the program.
(2) Compliance with terms and conditions of treatment and monitoring.
(3) Criteria for program completion.
(4) Criteria for termination of a physician and surgeon participant from the program.
(5) Acknowledgment that withdrawal or termination of a physician and surgeon participant from the program shall be reported to the board.
(6) Acknowledgment that expenses related to treatment, monitoring, laboratory tests, and other activities specified by the program shall be paid by the physician and surgeon participant.
(b) Any agreement entered into pursuant to this section shall not be considered a disciplinary action or order by the board and shall not be disclosed to the board if both of the following apply:
(1) The physician and surgeon did not enroll in the program as a condition of probation or as a result of an action by the board.
(2) The physician and surgeon is in compliance with the conditions and procedures in the agreement.
(c) Any oral or written information reported to the board shall remain confidential and shall not constitute a waiver of any existing evidentiary privileges. However, confidentiality regarding the physician and surgeon’s participation in the program and related records shall not apply if the board has referred a participant as a condition of probation or as otherwise authorized by this article.
(d) Nothing in this section prohibits, requires, or otherwise affects the discovery or admissibility of evidence in an action by the board against a physician and surgeon based on acts or omissions that are alleged to be grounds for discipline.
(e) Participation in the program shall not be a defense to any disciplinary action that may be taken by the board. This section does not preclude the board from commencing disciplinary action against a physician and surgeon who is terminated unsuccessfully from the program. However, that disciplinary action shall not include as evidence any confidential information unless authorized by this article.
2340.8.
(a) The Physician and Surgeon Health and Wellness Program Account is hereby established within the Contingent Fund of the Medical Board of California. Any fees collected by the board pursuant to subdivision (b) shall be deposited in the Physician and Surgeon Health and Wellness Program Account and shall be available, upon appropriation by the Legislature, for the support of the program.
(b) The board shall adopt regulations to determine the appropriate fee that a physician and surgeon participating in the program shall provide to the board. The fee amount adopted by the board shall be set at a level sufficient to cover all costs for participating in the program, including any administrative costs incurred by the board to administer the program.
(c) Subject to appropriation by the Legislature, the board may use moneys from the Contingent Fund of the Medical Board of California to support the initial costs for the board to establish the program under this article, except these moneys shall not be used to cover any costs for individual physician and surgeon participation in the program.

Summary: Existing law establishes in the Department of Consumer Affairs the Substance Abuse Coordination Committee, comprised of the executive officers of the department’s healing arts boards and a designee of the State Department of Health Care Services. Existing law requires the committee to formulate, by January 1, 2010, uniform and specific standards in specified areas that each healing arts board is required to use in dealing with substance-abusing licensees, whether or not a healing arts board has a formal diversion program. Existing law, the Medical Practice Act, provides for the licensure and regulation of physicians and surgeons by the Medical Board of California within the Department of Consumer Affairs. Existing law requires all moneys paid to and received by the Medical Board of California to be paid into the State Treasury and credited to the Contingent Fund of the Medical Board of California, which, except for fine and penalty money, is a continuously appropriated fund. This bill would authorize the board to establish a Physician and Surgeon Health and Wellness Program for the early identification of, and appropriate interventions to support a physician and surgeon in his or her rehabilitation from, substance abuse, as specified. If the board establishes a program, the bill would require the board to contract for the program’s administration with a private 3rd-party independent administering entity meeting certain requirements. The bill would require program participants to enter into an individual agreement with the program that includes, among other things, a requirement to pay expenses related to treatment, monitoring, and laboratory tests, as provided. This bill would create the Physician and Surgeon Health and Wellness Program Account within the Contingent Fund of the Medical Board of California. The bill would require the board to adopt regulations to determine the appropriate fee for a physician and surgeon to participate in the program, as specified. The bill would require these fees to be deposited in the Physician and Surgeon Health and Wellness Program Account and to be available, upon appropriation by the Legislature, for the support of the program. Subject to appropriation by the Legislature, the bill would authorize the board to use moneys from the Contingent Fund of the Medical Board of California to support the initial costs for the board to establish the program, except the bill would prohibit these moneys from being used to cover any costs for individual physician and surgeon participation in the program.

An act to add Article 14 (commencing with Section 2340) to Chapter 5 of Division 2 of the Business and Professions Code, relating to healing arts.


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

SECTION 1.
Section 9002 of the Health and Safety Code is amended to read:
9002.
The definitions in Chapter 1 (commencing with Section 7000) of Part 1 of Division 7 apply to this part. Further, as used in this part, the following terms have the following meanings:
(a) “Active militia” means the active militia as defined by Section 120 of the Military and Veterans Code.
(b) “Armed services” means the armed services as defined by Section 18540 of the Government Code.
(c) “Board of trustees” means the legislative body of a district.
(d) “District” means a public cemetery district created pursuant to this part or any of its statutory predecessors.
(e) “Domestic partner” means two adults who have chosen to share one another’s lives in an intimate and committed relationship of mutual caring, and are qualified and registered with the Secretary of State as domestic partners in accordance with Division 2.5 of the Family Code.
(f) “Family member” means any spouse, by marriage or otherwise, domestic partner, child or stepchild, by natural birth or adoption, parent, brother, sister, half-brother, half-sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, first cousin, or any person denoted by the prefix “grand” or “great,” or the spouse of any of these persons.
(g) “Firefighter” means a firefighter as defined by Section 1797.182.
(h) (1) “Interment right” means the rights held by the owner to use or control the use of a plot authorized by this part, for the interment of human remains, including both of the following rights:
(A) To determine the number and identity of any person or persons to be interred in the plot within a cemetery in conformance with all applicable regulations adopted by the cemetery district.
(B) To control the placement, design, wording, and removal of memorial markers in compliance with all applicable regulations adopted by the cemetery district.
(2) An interment right is a transferable property interest, and is governed by Chapter 5.5 (commencing with Section 9069.10).
(i) “Nonresident” means a person who does not reside within a district or does not pay property taxes on property located in a district.
(j) “Peace officer” means a peace officer as defined by Section 830 of the Penal Code.
(k) “Principal county” means the county having all or the greater portion of the entire assessed value, as shown on the last equalized assessment roll of the county or counties, of all taxable property within a district.
(l) “Voter” means a voter as defined by Section 359 of the Elections Code.
SEC. 2.
Chapter 5.5 (commencing with Section 9069.10) is added to Part 4 of Division 8 of the Health and Safety Code, to read:
CHAPTER  5.5. Interment Rights
9069.10.
An interment right does not include the right for disinterment of human remains except on consent of the cemetery district and the written consent of the surviving spouse, child, parent, or sibling, in that order of priority.
9069.15.
(a) This chapter does not apply to, or prohibit, the removal of remains from one plot to another in the same cemetery or the removal of remains by a cemetery district upon the written order of any of the following:
(1) The superior court of the county in which the cemetery is located.
(2) The coroner having jurisdiction of the location of the cemetery.
(3) The health department having jurisdiction of the cemetery.
(b) The cemetery district shall maintain a duplicate copy of an order pursuant to subdivision (a).
(c) The cemetery district shall retain a true and correct record of a removal of remains pursuant to subdivision (a) that includes all of the following:
(1) The date the remains were removed.
(2) The name and the age at death of the person whose remains were removed if available.
(3) The cemetery and plot from which the remains were removed.
(4) (A) If the removed remains are reinterred, the plot number, cemetery name, and location to which the remains were reinterred.
(B) If the removed remains are disposed of other than by being reinterred, a record of the alternate disposition.
(5) If the removed remains are reinterred at the cemetery, the date of reinterment.
(d) The person making the removal shall deliver to the cemetery district operating the cemetery from which the remains were removed a true, full, and complete copy of the record containing all of the information specified in subdivision (c).
9069.20.
(a) An interment right provides a transferable property interest to the person listed as the owner in the records of the cemetery district, subject to any written designation to the contrary signed by the owner and deposited with the cemetery district, or to the owner’s successor pursuant to either this section or subdivision (a) of Section 9069.25. An interment right shall not be construed as conferring title to the property burdened by the transferable property interest.
(b) The owner of record of an interment right may designate in writing the person or persons, other than the owner of record, who may be interred in the plot to which the owner holds the interment right.
(c) The owner of an interment right shall, at the time of purchase, designate a successor owner or owners of the interment right in a signed written designation deposited with the district.
(d) Use of an interment right transferred from the owner to a successor pursuant to subdivision (c) shall be made in compliance with applicable provisions of state and local law, and of applicable requirements or policies established by the district board of trustees.
9069.25.
(a) If the owner of an interment right dies without making a valid and enforceable disposition of the interment right by a specific devise in a testamentary device, or by a written designation pursuant to subdivision (c) of Section 9069.20, the interment right shall pass according to the laws of intestate succession as set forth in Sections 6400 to 6413, inclusive, of the Probate Code. In the event that the owner has no heirs at law, the district shall follow the abandonment procedures established under Section 9069.
(b) A surviving spouse, registered domestic partner, child, parent, or heir who has an interment right pursuant to this section may waive that interment right in favor of any other relative of the deceased owner or spouse of a relative of the deceased owner.
9069.30.
When a public cemetery district acts to transfer ownership rights or make an interment on the basis of the affidavit, given under penalty of perjury pursuant to Section 9069.35, the district, and any employee or trustee of the district, shall not be liable for any claims, losses, or damages asserted in any action unless the district had actual knowledge that the facts stated in writing are false.
9069.35.
A person who purports to be the successor owner of an interment right shall execute a written affidavit declaring, under penalty of perjury, all of the following:
(a) He or she is the person entitled to succeed to the interment right pursuant to Section 9069.20.
(b) He or she has exerted all reasonable efforts to find other persons who may have an equal or higher claim to succeed to the interment right.
(c) He or she is unaware, to the best of his or her knowledge, of any opposition challenging his or her right to succeed to the interment right.
9069.40.
Upon the sale to a person of a plot in a cemetery within a district, the district shall notify the purchaser, in writing, of any interment rights, that this chapter governs the succession of ownership of the interment rights, and the district’s duly adopted policies, rules, and regulations governing the use, sale, or other transfer of interment rights.
SEC. 3.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

Summary: Existing law, the Public Cemetery District Law, specifies the procedures for the formation of public cemetery districts, procedures for the selection of the district board of trustees and officers, and the powers and duties of the board. Existing law authorizes a public cemetery district to sell “interment rights,” defined as the right to use or control the use of a plot, niche, or other space in a public cemetery district for interment of human remains. Existing law provides for the succession of an interment plot in a private cemetery. This bill would modify the definition of “interment rights” to, among other things, specify that those rights are a transferable property interest held by the owner to determine, among other things, the number and identity of any person or persons to be interred in the plot within a public cemetery. The bill would require the owner of an interment right, at the time of purchase, to designate a successor owner or owners in a signed written designation deposited with the cemetery district. The bill would provide that the intestate order of succession would apply, if the owner dies without making that written designation or a valid and enforceable disposition of the interment right by a specific devise in a testamentary device. The bill would also require the public cemetery district to follow specified procedures in the event that the owner dies with no heirs at law. The bill also would provide the circumstances and process under which human remains may be disinterred, reinterred, or removed from a public cemetery district after interment, and would specify the records required to be maintained by the public cemetery district and the person removing and relocating the human remains. The bill would require a person who purports to be the successor owner of an interment right to execute a written affidavit, under penalty of perjury, that includes specified information regarding his or her claim of successorship, and would provide that a district or district employee or trustee is not liable for claims, losses, or damages resulting from transferring an interment right in reliance on that affidavit, except as provided. By expanding the scope of the crime of perjury and imposing new duties on public cemetery districts, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason. With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

An act to amend Section 9002 of, and to add Chapter 5.5 (commencing with Section 9069.10) to Part 4 of Division 8 of, the Health and Safety Code, relating to cemeteries.