Bill Text: CA AB127 | 2015-2016 | Regular Session | Amended
Bill Title: State government.
Spectrum: Partisan Bill (Democrat 16-0)
Status: (Engrossed - Dead) 2016-11-30 - Died on Senate inactive file. [AB127 Detail]
Download: California-2015-AB127-Amended.html
BILL NUMBER: AB 127 AMENDED BILL TEXT AMENDED IN SENATE AUGUST 24, 2015 INTRODUCED BY Committee on Budget (Weber (Chair), Bloom, Bonta, Campos, Chiu, Cooper, Gordon, Jones-Sawyer, McCarty, Mullin, Nazarian, O'Donnell, Rodriguez, Thurmond, Ting, and Williams) JANUARY 9, 2015An act relating to the Budget Act of 2015.An act to amend Sections 11555, 11556, 11565.5, 19825.5, 22866, and 100505 of the Government Code, to amend Section 1233.10 of the Penal Code, and to amend Sections 17138.3 and 24308.7 of the Revenue and Taxation Code, relating to state government, and making an appropriation therefor, to take effect immediately, bill related to the budget. LEGISLATIVE COUNSEL'S DIGEST AB 127, as amended, Committee on Budget.Budget Act of 2015.State government. (1) Existing law provides for the salaries of the chairperson and commissioners of the Board of Parole Hearings and the chairperson and members of the Occupational Safety and Health Appeals Board, and limits increases to those salaries by, among other restrictions, prohibiting a salary increase exceeding the percentage of the general increase in the salary rates and ranges for classifications provided during that fiscal year for state employees designated as managerial. This bill would instead authorize the Department of Human Resources to set and adjust, as needed, the annual compensation of these state officers based on specified factors. The bill would prohibit compensation for these state officers from exceeding 125% of the compensation recommended to be paid to the Governor by the California Citizens Compensation Commission, and would require the department to notify the Legislature of the compensation level implemented within 30 days of the effective date of the proposed compensation adjustment. (2) The Public Employees' Medical and Hospital Care Act requires, among other things, the Board of Administration of the Public Employees' Retirement System to report to the Legislature and the Director of Finance, on November 1, 2015, and annually thereafter, on specific components of the health benefits program. This bill would remove the requirement for the board to report on November 1, 2015, and instead require the board to report beginning on November 1, 2016, and annually thereafter. (3) Existing law established the California Health Benefit Exchange to be governed by an executive board consisting of 5 members who are residents of California. Existing law requires the board to establish and use a competitive process to select participating carriers and any other contractors, and exempts any contract entered into pursuant to these provisions from the State Contract Act. This bill would make a nonsubstantive change to this provision. (4) Existing law requires a county board of supervisors, upon an agreement to accept specified funding, to develop and administer a competitive grant program in collaboration with the county's Community Corrections Partnership to fund community recidivism and crime reduction services. Existing law allocates funding to counties from the Budget Act of 2015 pursuant to a specified allocation schedule for this purpose and requires the board of supervisors to grant the funds to community recidivism and crime reduction service providers, as defined. Based on the population of the county, existing law limits the maximum amount of funds that may be awarded to a service provider to between $10,000 and $100,000, and further limits the total amount of grants that may be awarded to a single provider by all counties to $100,000. This bill would make the above-specified limitation on the maximum amount that may be awarded to a service provider applicable to each Budget Act allocation. (5) The Personal Income Tax Law and the Corporation Tax Law provide for various exclusions from the calculation of gross income in determining tax liability, and specifically exclude from that calculation, for taxable years beginning on or after July 1, 2015, an amount received as a loan, loan forgiveness, grant, credit, rebate, voucher, or incentive from the California Residential Mitigation Program or the California Earthquake Authority relating to earthquake loss mitigation. These existing laws define "earthquake loss mitigation" as an activity that reduces seismic risks to a residential structure or its contents, or both, and define a "residential structure" by reference to another law, relating to policies of residential property insurance. This bill would remove the reference to a loan from the listing of excluded items, and revise the definition of "residential structure" to also include a residential building of not fewer than 2, but not more than 10, dwelling units. (6) The bill would make an appropriation from the State Department of Public Health Licensing and Certification Program Fund of $400,000 to the Long-Term Care Ombudsman Program for the purposes of Program 3900-Supportive Services, as specified in the Budget Act of 2015. (7) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.Vote: majority. Appropriation:noyes . Fiscal committee:noyes . State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 11555 of the Government Code is amended to read: 11555. (a) Effective January 1, 1988, an annual salary of seventy-one thousand five hundred eighty-seven dollars ($71,587) shall be paid to the following: (1) Chairperson of the Board of Parole Hearings. (2) Chairperson of the Occupational Safety and Health Appeals Board. (b) The annual compensation provided by this section shall be increased in any fiscal year in which a general salary increase is provided for state employees. The amount of the increase provided by this section shall be comparable to, but shall not exceed, the percentage of the general salary increases provided for state employees during that fiscal year. (c) Notwithstanding subdivision (b), any salary increase is subject to Section11565.5.19825.5. SEC. 2. Section 11556 of the Government Code is amended to read: 11556. (a) Effective January 1, 1988, an annual salary of sixty-nine thousand seventy-six dollars ($69,076) shall be paid to each of the following: (1) Commissioner of the Board of Parole Hearings. (2) Member of the Occupational Safety and Health Appeals Board. (b) The annual compensation provided by this section shall be increased in any fiscal year in which a general salary increase is provided for state employees. The amount of the increase provided by this section shall be comparable to, but shall not exceed, the percentage of the general salary increases provided for state employees during that fiscal year. (c) Notwithstanding subdivision (b), any salary increase is subject to Section11565.5.19825.5. SEC. 3. Section 11565.5 of the Government Code is amended to read: 11565.5. Notwithstanding Sections 11553, 11553.5,11555, 11556,11563.7, and 11564, with respect to any salary increase made after January 1, 1997, for nonelected members of state boards and commissions specified in Sections 11553, 11553.5,11555, 11556,11563.7, and 11564, the annual compensation provided by these sections shall not automatically increase but may be increased in any fiscal year in which there is a general increase in the salary ranges and rates for state civil service classifications. The amount of the increase, as determined by the Department of Human Resources and subject to the appropriation of funds by the Legislature in the annual Budget Act, shall not exceed the percentage of the general increase in the salary rates and ranges for classifications provided during that fiscal year for state employees designated as managerial. SEC. 4. Section 19825.5 of the Government Code is amended to read: 19825.5. (a) Notwithstanding Sections 11550, 11552, 11554, 11555, and11554,11556, the department shall set and adjust, as needed, the annual compensation of the officers and employees listed in Sections 11550, 11552, 11554, 11555, and11554.11556. (b) When setting or adjusting the annual compensation of the employees described in subdivision (a), the department shall consider the size and scope of the organization, compensation paid to other similar positions in other public jurisdictions, the scope of responsibility of the position, the need to avoid salary compaction, and other factors appropriate to the determination of compensation necessary to recruit and retain qualified employees in leadership positions for the state. The compensation shall not exceed 125 percent of the compensation recommended to be paid to the Governor of the State of California by the California Citizens Compensation Commission. (c) The department shall notify the Legislature of the compensation level implemented for any of the employees described in subdivision (a) within 30 days of the effective date of the proposed compensation adjustment. SEC. 5. Section 22866 of the Government Code is amended to read: 22866. (a) The board shall report to the Legislature and the Director of Financeannually,on or before November 1, 2016, and annually thereafter, regarding the health benefits program. The report shall include, but not be limited to the following: (1) General overview of the health benefits program, including, but not limited to, the following: (A) Description of health plans and benefits provided, including essential and nonessential benefits as required by state and federal law, member expected out-of-pocket expenses, and actuarial value by metal tier as defined by the federal Patient Protection and Affordable Care Act (Public Law 111-148), as amended by the federal Health Care and Education Reconciliation Act of 2010 (Public Law 111-152). (B) Geographic coverage. (C) Historic enrollment information by basic and Medicare plans, by state and contract agencies, by active and retired membership, and by subscriber and dependent tier. (D) Historic expenditures by basic and Medicare plans, by state and contract agencies, by active and retired membership, and by subscriber and dependent tier. (2) Reconciliation of premium increases or decreases from the prior plan year, and the reasons for those changes. (A) Description of benefit design and benefit changes, including prescription drug coverage, by plan. The description shall detail whether benefit changes were required by statutory mandate, federal law, or an exercise of the board's discretion, the costs or savings of the benefit change, and the impact of how the changes fit into a broader strategy. (B) Discussion of risk. (C) Description of medical trend changes in aggregate service categories for each plan. The aggregate service categories used shall include the standard categories of information collected by the board, consisting of the following: inpatient, emergency room, ambulatory surgery, office, ambulatory radiology, ambulatory lab, mental health and substance abuse, other professional, prescriptions, and all other service categories. (D) Reconciliation of past year premiums against actual enrollments, revenues, and accounts receivables. (3) Overall member health as reflected by data on chronic conditions. (4) The impact of federal subsidies or contributions to the health care of members, including Medicare Part A, Part B, Part C, or Part D, low-income subsidies, or other federal program. (5) The cost of benefits beyond Medicare contained in the board's Medicare supplemental plans. (6) A description of plan quality performance and member satisfaction, including, but not limited to, the following: (A) The Healthcare Effectiveness Data and Information Set, referred to as HEDIS. (B) The Medicare star rating for Medicare supplemental plans. (C) The degree of satisfaction of members and annuitants with the health benefit plans and with the quality of the care provided, to the extent the board surveys participants. (D) The level of accessibility to preferred providers for rural members who do not have access to health maintenance organizations. (E) Other applicable quality measurements collected by the board as part of the board's health plan contracts. (7) A description of risk assessment and risk mitigation policy related to the board's self-funded and flex-funded plan offerings, including, but not limited to the following: (A) Reserve levels and their adequacy to mitigate plan risk. (B) The expected change in reserve levels and the factors leading to this change. (C) Policies to reduce excess reserves or rebuild inadequate reserves. (D) Decisions to lower premiums with excess reserves. (E) The use of reinsurance and other alternatives to maintaining reserves. (8) Description and reconciliation of administrative expenditures, including, but not limited to, the following: (A) Organization and staffing levels, including salaries, wages, and benefits. (B) Operating expenses and equipment expenditure items, including, but not limited to, internal and external consulting and intradepartmental transfers. (C) Funding sources. (D) Investment strategies, historic investment performance, and expected investment returns of the Public Employees' Contingency Reserve Fund and the Public Employees' Health Care Fund. (9) Changes in strategic direction and major policy initiatives. (b) A report submitted pursuant to subdivision (a) shall be provided in compliance with Section 9795. SEC. 6. Section 100505 of the Government Code is amended to read: 100505. (a) The board shall establish and use a competitive process to select participating carriers and any other contractors under this title. Any contract entered into pursuant to this title shall be exempt fromChapter 1Part 2 (commencing with Section 10100) ofPart 2 ofDivision 2 of the Public Contract Code, and shall be exempt from the review or approval of any division of the Department of General Services. The board shall adopt a Health Benefit Exchange Contracting Manual incorporating procurement and contracting policies and procedures that shall be followed by the Exchange. The policies and procedures in the manual shall be substantially similar to the provisions contained in the State Contracting Manual. (b) The adoption, amendment, or repeal of a regulation by the board to implement this section, including the adoption of a manual pursuant to subdivision (a) and any procurement process conducted by the Exchange in accordance with the manual, is exempt from the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2). SEC. 7. Section 1233.10 of the Penal Code is amended to read: 1233.10. (a) Upon agreement to accept funding from the Recidivism Reduction Fund, created in Section 1233.9, a county board of supervisors, in collaboration with the county's Community Corrections Partnership, shall develop, administer, and collect and submit data to the Board of State and Community Corrections regarding a competitive grant program intended to fund community recidivism and crime reduction services, including, but not limited to, delinquency prevention, homelessness prevention, and reentry services. (1) Commencing with the 2014-15 fiscal year, the funding shall be allocated to counties by the State Controller's Office from Item 5227-101-3259 of Section 2.00 of the Budget Act of 2014 according to the following schedule: Alameda $ 250,000 Alpine $ 10,000 Amador $ 10,000 Butte $ 50,000 Calaveras $ 10,000 Colusa $ 10,000 Contra Costa $ 250,000 Del Norte $ 10,000 El Dorado $ 50,000 Fresno $ 250,000 Glenn $ 10,000 Humboldt $ 50,000 Imperial $ 50,000 Inyo $ 10,000 Kern $ 250,000 Kings $ 50,000 Lake $ 25,000 Lassen $ 10,000 Los Angeles $1,600,000 Madera $ 50,000 Marin $ 50,000 Mariposa $ 10,000 Mendocino $ 25,000 Merced $ 50,000 Modoc $ 10,000 Mono $ 10,000 Monterey $ 100,000 Napa $ 50,000 Nevada $ 25,000 Orange $ 500,000 Placer $ 50,000 Plumas $ 10,000 Riverside $ 500,000 Sacramento $ 250,000 San Benito $ 25,000 San Bernardino $ 500,000 San Diego $ 500,000 San Francisco $ 250,000 San Joaquin $ 250,000 San Luis Obispo $ 50,000 San Mateo $ 250,000 Santa Barbara $ 100,000 Santa Clara $ 500,000 Santa Cruz $ 50,000 Shasta $ 50,000 Sierra $ 10,000 Siskiyou $ 10,000 Solano $ 100,000 Sonoma $ 100,000 Stanislaus $ 100,000 Sutter $ 25,000 Tehama $ 25,000 Trinity $ 10,000 Tulare $ 100,000 Tuolumne $ 25,000 Ventura $ 250,000 Yolo $ 50,000 Yuba $ 25,000 (2) Commencing with the 2015-16 fiscal year, the funding shall be allocated to counties by the State Controller's Office from Item 5227-101-3259 of Section 2.00 of the Budget Act of 2015 according to the following schedule: Alameda $ 125,000 Alpine $ 5,000 Amador $ 5,000 Butte $ 25,000 Calaveras $ 5,000 Colusa $ 5,000 Contra Costa $ 125,000 Del Norte $ 5,000 El Dorado $ 25,000 Fresno $ 125,000 Glenn $ 5,000 Humboldt $ 25,000 Imperial $ 25,000 Inyo $ 5,000 Kern $ 125,000 Kings $ 25,000 Lake $ 12,500 Lassen $ 5,000 Los Angeles $ 800,000 Madera $ 25,000 Marin $ 25,000 Mariposa $ 5,000 Mendocino $ 12,500 Merced $ 25,000 Modoc $ 5,000 Mono $ 5,000 Monterey $ 50,000 Napa $ 25,000 Nevada $ 12,500 Orange $ 250,000 Placer $ 25,000 Plumas $ 5,000 Riverside $ 250,000 Sacramento $ 125,000 San Benito $ 12,500 San Bernardino $ 250,000 San Diego $ 250,000 San Francisco $ 125,000 San Joaquin $ 125,000 San Luis Obispo $ 25,000 San Mateo $ 125,000 Santa Barbara $ 50,000 Santa Clara $ 250,000 Santa Cruz $ 25,000 Shasta $ 25,000 Sierra $ 5,000 Siskiyou $ 5,000 Solano $ 50,000 Sonoma $ 50,000 Stanislaus $ 50,000 Sutter $ 12,500 Tehama $ 12,500 Trinity $ 5,000 Tulare $ 50,000 Tuolumne $ 12,500 Ventura $ 125,000 Yolo $ 25,000 Yuba $ 12,500 (b) For purposes of this section, "community recidivism and crime reduction service provider" means a nongovernmental entity or a consortium or coalition of nongovernmental entities, that provides community recidivism and crime reduction services, as described in paragraph (2) of subdivision (c), to persons who have been released from the state prison, a county jail, a juvenile detention facility, who are under the supervision of a parole or probation department, or any other person at risk of becoming involved in criminal activities. (c) (1) A community recidivism and crime reduction service provider shall have a demonstrated history of providing services, as described in paragraph (2), to the target population during the five years immediately prior to the application for a grant awarded pursuant to this section. (2) A community recidivism and crime reduction service provider shall provide services that are designed to enable persons to whom the services are provided to refrain from engaging in crime, reconnect with their family members, and contribute to their communities. Community recidivism and crime reduction services may include all of the following: (A) Self-help groups. (B) Individual or group assistance with basic life skills. (C) Mentoring programs. (D) Academic and educational services, including, but not limited to, services to enable the recipient to earn his or her high school diploma. (E) Job training skills and employment. (F) Truancy prevention programs. (G) Literacy programs. (H) Any other service that advances community recidivism and crime reduction efforts, as identified by the county board of supervisors and the Community Corrections Partnership. (I) Individual or group assistance with referrals for any of the following: (i) Mental and physical health assessments. (ii) Counseling services. (iii) Education and vocational programs. (iv) Employment opportunities. (v) Alcohol and drug treatment. (vi) Health, wellness, fitness, and nutrition programs and services. (vii) Personal finance and consumer skills programs and services. (viii) Other personal growth and development programs to reduce recidivism. (ix) Housing assistance. (d) Pursuant to this section and upon agreement to accept funding from the Recidivism Reduction Fund, the board of supervisors, in collaboration with the county's Community Corrections Partnership, shall grant funds allocated to the county, as described in subdivision (a), to community recidivism and crime reduction service providers based on the needs of their community. (e) (1) The amount awarded to each community recidivism and crime reduction service provider by a county shall be based on the population of the county, as projected by the Department of Finance, and shall not exceed thefollowing:following for each Budget Act allocation: (A) One hundred thousand dollars ($100,000) in a county with a population of over 4,000,000 people. (B) Fifty thousand dollars ($50,000) in a county with a population of 700,000 or more people but less than 4,000,000 people. (C) Twenty five thousand dollars ($25,000) in a county with a population of 400,000 or more people but less than 700,000 people. (D) Ten thousand dollars ($10,000) in a county with a population of less than 400,000 people. (2) The total amount of grants awarded to a single community recidivism and crime reduction service provider by all counties pursuant to this section shall not exceed one hundred thousand dollars($100,000).($100,000) per Budget Act allocation. (f) The board of supervisors, in collaboration with the county's Community Corrections Partnership, shall establish minimum requirements, funding criteria, and procedures for the counties to award grants consistent with the criteria established in this section. (g) A community recidivism and crime reduction service provider that receives a grant under this section shall report to the county board of supervisors or the Community Corrections Partnership on the number of individuals served and the types of services provided, consistent with paragraph (2) of subdivision (c). The board of supervisors or the Community Corrections Partnership shall report to the Board of State and Community Corrections any information received under this subdivision from grant recipients. (h) Of the total amount granted to a county, up to 5 percent may be withheld by the board of supervisors or the Community Corrections Partnership for the payment of administrative costs. (i) Any funds allocated to a county under this section shall be available for expenditure for a period of four years and any unexpended funds shall revert to the state General Fund at the end of the four-year period. SEC. 8. Section 17138.3 of the Revenue and Taxation Code is amended to read: 17138.3. (a) For each taxable year beginning on or after July 1, 2015, gross income does not include an amount received as aloan,loan forgiveness, grant, credit, rebate, voucher, or other financial incentive issued by the California Residential Mitigation Program or the California Earthquake Authority to assist a residential property owner or occupant with expenses paid, or obligations incurred, for earthquake loss mitigation. (b) For the purposes of this section, "earthquake loss mitigation" means an activity that reduces seismic risks to a residential structure or its contents, or both. For purposes of structural seismic risk mitigation, a residential structure isa structure described in subdivision (a)either ofSection 10087 oftheInsurance Code.following: (1) A structure described in subdivision (a) of Section 10087 of the Insurance Code. (2) A residential building of not fewer than 2, but not more than 10, dwelling units. SEC. 9. Section 24308.7 of the Revenue and Taxation Code is amended to read: 24308.7. (a) For each taxable year beginning on or after July 1, 2015, gross income does not include an amount received as aloan,loan forgiveness, grant, credit, rebate, voucher, or other financial incentive issued by the California Residential Mitigation Program or the California Earthquake Authority to assist a residential property owner or occupant with expenses paid, or obligations incurred, for earthquake loss mitigation. (b) For the purposes of this section, "earthquake loss mitigation" means an activity that reduces seismic risks to a residential structure or its contents, or both. For purposes of structural seismic risk mitigation, a residential structure isa structure described in subdivision (a)either ofSection 10087 oftheInsurance Code.following: (1) A structure described in subdivision (a) of Section 10087 of the Insurance Code. (2) A residential building of not fewer than 2, but not more than 10, dwelling units. SEC. 10. Item 4170-101-3098 is added to Section 2.00 of the Budget Act of 2015, and the amount of four hundred thousand dollars ($400,000) is hereby appropriated from the State Department of Public Health Licensing and Certification Program Fund to this item for Program 3900-Supportive Services, for the Long-Term Care Ombudsman Program. SEC. 11. This act is a bill providing for appropriations related to the Budget Bill within the meaning of subdivision (e) of Section 12 of Article IV of the California Constitution, has been identified as related to the budget in the Budget Bill, and shall take effect immediately.SECTION 1.It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2015.