Bill Text: CA SB1006 | 2011-2012 | Regular Session | Chaptered
Bill Title: State government.
Spectrum: Unknown
Status: (Passed) 2012-06-27 - Chaptered by Secretary of State. Chapter 32, Statutes of 2012. [SB1006 Detail]
Download: California-2011-SB1006-Chaptered.html
BILL NUMBER: SB 1006 CHAPTERED
BILL TEXT
CHAPTER 32
FILED WITH SECRETARY OF STATE JUNE 27, 2012
APPROVED BY GOVERNOR JUNE 27, 2012
PASSED THE SENATE JUNE 27, 2012
PASSED THE ASSEMBLY JUNE 27, 2012
AMENDED IN ASSEMBLY JUNE 25, 2012
INTRODUCED BY Committee on Budget and Fiscal Review
FEBRUARY 6, 2012
An act to amend Section 17206 of the Business and Professions
Code, to amend Section 1936 of the Civil Code, to amend Sections
8879.58, 8879.59, 11270, 11546, 13071, 17581, 17617, 19849, 19851,
and 76104.7 of, to amend and repeal Section 5924 of, to amend,
repeal, and add Section 51298 of, to add Sections 8169.7, 12531, and
13300.5 to, to add and repeal Section 15849.65 of, to repeal Section
50087 of, and to repeal and amend Section 15849.6 of, the Government
Code, to amend Section 11873 of the Insurance Code, to amend Section
62.9 of the Labor Code, to amend Section 972.1 of the Military and
Veterans Code, to amend Section 6611 of the Public Contract Code, and
to amend Sections 8352.3, 8352.4, 8352.5, 8352.6, and 19533 of, and
to repeal Article 6 (commencing with Section 19290) of Chapter 5 of
Part 10.2 of Division 2 of, the Revenue and Taxation Code, and to
amend Item 7300-001-0001 of Section 2.00 of the Budget Act of 2012,
relating to state government, and making an appropriation therefor,
to take effect immediately, bill related to the budget.
LEGISLATIVE COUNSEL'S DIGEST
SB 1006, Committee on Budget and Fiscal Review. State government.
(1) Existing law regulates consumer rental car agreements and
authorizes rental car companies to collect a customer facility charge
based on a fee required by an airport operated by specified
entities. Existing law also directs those airports to complete
independent audits to substantiate the need for the fee prior to the
collection of these fees from rental companies. Existing law requires
the Controller to review these independent audits and report its
conclusions to the Legislature, as specified. Existing law also
requires the Controller to be reimbursed for these reviews by the
airport being audited.
This bill would remove the provisions requiring the Controller to
review, and report to the Legislature regarding, the independent
audits described above.
(2) Existing law requires every city, county, or city and county
that has at least 5,000 residents or in which 5% of the population is
of Filipino ancestry or ethnic origin and that conducts a survey as
to the ancestry or ethnic origin of its employees, or that maintains
any statistical tabulation of minority group employees, to categorize
employees whose ancestry or ethnic origin is Filipino as Filipinos
in the survey or tabulation.
This bill would repeal that requirement.
(3) Existing law requires the Department of General Services to
offer for sale land that is declared excess or is declared surplus by
the Legislature, and that is not needed by any state agency, to
local agencies and private entities and individuals, subject to
specified conditions.
This bill would authorize the Department of General Services to
sell all or a portion of specified parcels of property located in the
City of Sacramento that are leased by the department to the Capitol
Area Development Authority, subject to specified criteria. The bill
would require the proceeds of that sale to be deposited into the
General Fund or the Deficit Recovery Fund, as specified.
(4) Existing law requires a $3 state-only penalty to be levied in
each county for every $10, or part of $10, of a fine, penalty, or
forfeiture imposed and collected by the courts for all criminal
offenses, as specified.
This bill would increase the amount of the state-only penalty to
$4 for every $10, or part of $10, of those payments.
(5) Existing law, the Highway Safety, Traffic Reduction, Air
Quality, and Port Security Bond Act of 2006, approved by the voters
as Proposition 1B at the November 7, 2006, general election,
authorizes the issuance of $19.925 billion of general obligation
bonds for specified purposes. Existing law specifies the
responsibilities of the California Emergency Management Agency (Cal
EMA) with respect to the allocation of bond funds appropriated from
the Transit System Safety, Security, and Disaster Response Account.
This bill would require Cal EMA, in prioritizing the funding of
projects, to additionally prioritize projects that demonstrate the
ability and intent to expend a significant percentage of project
funds within 6 months. During each fiscal year a transit agency or
transit operator receives funds, the bill would authorize Cal EMA to
monitor project expenditures.
(6) Existing law establishes the California Technology Agency
within state government, and requires the office to carry out
specified duties relating to creating and managing the technology
policy of the state. Existing law requires the agency to be
responsible for the approval and oversight of information technology
projects.
This bill would require a state department to get written approval
from the California Technology Agency to procure oversight services
for information technology projects unless otherwise required by law.
(7) Existing law requires the Department of Finance to certify
annually to the Controller the amount determined to be the fair share
of administrative costs due and payable from each state agency and
to certify to the Controller any amount redetermined to be the fair
share of administrative costs due and payable from a state agency.
Existing law requires the Controller to notify a state agency of that
amount, and, unless the state agency requests that those payments be
deferred, to transfer that amount from specified funds to the
Central Service Cost Recovery Fund. Existing law defines
"administrative costs" as the amounts expended by various specified
state entities for supervision or administration of the state
government or for services to the various state agencies.
This bill would modify the definition of administrative costs to
include amounts expended by the Financial Information System for
California.
(8) Existing law requires the Director of Finance, in coordinating
the internal auditors of state agencies, to ensure that these
auditors utilize the "Standards for the Professional Practices of
Internal Auditing."
This bill would also require the director to be responsible for
coordinating state agency internal audits and identifying when
agencies are required to comply with federally mandated audits.
(9) Existing law requires the Department of Finance, the
Controller, the Treasurer, and the Department of General Services to
collaboratively develop, implement, utilize, maintain, and operate
the Financial Information System for California (FISCal) as a single
integrated financial management system, as specified. Existing law
requires the fiscal Project Office in the Department of Finance to
implement these provisions until the Office of the Financial
Information System is established.
This bill would require the FISCal Project Office to report to the
Legislature, by February 15 of each year, an update on the project,
as specified. The provisions of the bill would remain in effect only
until a postimplementation evaluation report has been approved by the
California Technology Agency.
(10) Existing law sets forth the duties and powers of the
Treasurer in the sale of state bonds. Moneys are continuously
appropriated from the General Fund in an annual amount necessary to
pay all obligations, including principal, interest, fees, costs,
indemnities, and all other amounts incurred by the state pursuant to
any credit enhancement or liquidity agreement entered into by the
state, as specified, for bonds payable pursuant to an appropriation
from the General Fund. Existing law, until June 30, 2013, prohibits
the amount appropriated for these fees, costs, and other similar
expenses from exceeding 3% of the original principal amount of the
bonds.
This bill would repeal the inoperative date of those provisions,
thereby extending the 3% interest rate indefinitely, thereby making
an appropriation.
(11) Existing law, the State Building Construction Act of 1955,
authorizes the State Public Works Board to acquire and construct
public buildings for use by state agencies, when authorized by a
separate act or appropriation enacted by the Legislature. Existing
law authorizes the board to issue bonds, notes, or other obligations
to finance the acquisition or construction of a public building,
facility, or equipment as authorized by the Legislature, and any
additional amount authorized by the board to pay the cost of
financing.
This bill would revise and recast that provision to instead
authorize the State Public Works Board to issue bonds, notes, or
other obligations to finance the acquisition, design, or construction
of a public building as authorized by the Legislature, and any
additional amount authorized by the board to pay the cost of
financing, including interest payable on any interim loan or interim
financing for the public building.
(12) Existing law, until January 1, 2013, requires a mortgagee,
trustee, beneficiary, or authorized agent to comply with certain
procedures in dealing with a borrower who is in default prior to
filing a notice of default and to explore options for the borrower to
avoid foreclosure, as specified. Existing law provides that a
violation of these provisions would result in specified civil
penalties, including penalties for unfair business practices.
Existing law provides that civil penalties collected for unfair
business practice violations brought by the Attorney General are
deposited in the Unfair Competition Law Fund within the General Fund.
This bill would establish the National Mortgage Special Deposit
Fund in the State Treasury as a continuously appropriated fund and
would require certain direct payments made to the state under the
National Mortgage Settlement to be deposited in the fund for
allocation by the Director of Finance, as specified. This bill would
further authorize the Director of Finance to allocate moneys from the
fund to offset General Fund expenditures during the 2011-12,
2012-13, and 2013-14 fiscal years for purposes consistent with the
National Mortgage Settlement. The bill would also require that civil
penalties collected under the National Mortgage Settlement be
deposited into the Unfair Competition Fund, and be continuously
appropriated to the Department of Justice to offset the General Fund
costs incurred by the department, thereby also making an
appropriation.
(13) Existing law requires the Department of Veterans Affairs to
disburse funds, appropriated to the department for the purpose of
supporting county veterans service offices pursuant to the annual
Budget Act, on a pro rata basis, to counties that comply with certain
conditions. Existing law requires the Department of Veterans Affairs
to determine annually the amount of new or increased monetary
benefits paid to eligible veterans by the federal government
attributable to the assistance of county veterans service offices and
requires the department to prepare and transmit its determination
for the preceding fiscal year to the Department of Finance and the
Legislature, as specified.
This bill would require the Department of Veterans Affairs, by
June 30, 2013, to develop a performance-based formula that will
incentivize county veterans service offices to perform workload
units, as defined, that help veterans access federal compensation and
pension benefits and other benefits, in order to maximize the amount
of federal money received by California veterans. This bill would
require the department to conduct a review of the high-performing and
low-performing county veterans service offices and based on this
review, produce a best-practices manual for county veterans service
offices by June 30, 2013.
(14) Existing law, known as the Capital Investment Incentive
Program, authorizes, until January 1, 2017, a city, county, or city
and county to pay capital investment incentive amounts to a
requesting proponent of a "qualified manufacturing facility," as
defined. Existing law also requires the Business, Transportation and
Housing Agency to certify qualified manufacturing facilities for
purposes of these provisions and to carry out various oversight
duties, including, but not limited to, reporting specified
information to the Legislature.
This bill would, until June 30, 2013, expand these provisions to
include a "qualified research and development facility," modify and
provide additional definitions, and transfer the duties of the
Business, Transportation and Housing Agency to the Governor's Office
of Business and Economic Development. This bill would, on July 1,
2013, restore these provisions to existing law.
(15) Under the California Constitution, whenever the Legislature
or a state agency mandates a new program or higher level of service
on any local government, including school districts, the state is
required to provide a subvention of funds to reimburse the local
government, with specified exceptions.
Existing law provides that no local agency or school district
shall be required to implement or give effect to any statute or
executive order, or portion thereof that imposes a mandate during any
fiscal year and for the period immediately following that fiscal
year for which the Budget Act has not been enacted for the subsequent
fiscal year if specified conditions are met, including that the
statute or executive order, or portion thereof, has been specifically
identified by the Legislature in the Budget Act for the fiscal year
as being one for which reimbursement is not provided for that fiscal
year.
This bill would provide that all state-mandated local programs
suspended in the Budget Act for the 2012-13 fiscal year will also be
suspended in the 2013-14 and 2014-15 fiscal years.
(16) Existing law also requires that the total amount due to each
city, county, city and county, and special district, for which the
state has determined that reimbursement is required under the
California Constitution, be appropriated for payment to these
entities over a period of not more than 15 years, commencing with the
Budget Act for the 2006-07 fiscal year and concluding with the
Budget Act for the 2020-21 fiscal year.
This bill would prohibit appropriations for payment of
reimbursement claims pursuant to these provisions for the fiscal
years 2012-13, 2013-14, and 2014-15.
(17) Existing law imposes an excise tax on motor vehicle fuel
(gasoline). Existing law, as a result of the elimination of the sales
tax on gasoline effective July 1, 2010, provides for a commensurate
increase in the excise tax on gasoline. Article XIX of the California
Constitution requires gasoline excise tax revenues from motor
vehicles traveling upon public streets and highways to be deposited
in the Highway Users Tax Account, for allocation to city, county, and
state transportation purposes. Existing law generally provides for
statutory allocation of gasoline excise tax revenues attributable to
other modes of transportation, including aviation, boats,
agricultural vehicles, and off-highway vehicles, to particular
accounts and funds for expenditure on purposes associated with those
other modes. Expenditure of the gasoline excise tax revenues
attributable to those other modes is not restricted by Article XIX of
the California Constitution.
This bill, with respect to the increase in gasoline excise taxes
as a result of the elimination of the sales tax on gasoline, would
instead transfer the revenues attributable to aviation, boats,
agricultural vehicles, and off-highway vehicles to the General Fund,
commencing July 1, 2012. The bill, with respect to these revenues
already transferred to the particular nonhighway accounts and funds
in the 2010-11 and 2011-12 fiscal years, would also transfer those
revenues to the General Fund.
(18) Existing law states that it is the policy of the state that
the workweek of the state employee shall be 40 hours, and the workday
of state employees 8 hours, except that workweeks and workdays of a
different number of hours may be established in order to meet the
varying needs of the different state agencies.
This bill would require a state employee, except as specified, for
the period from July 1, 2012, to June 30, 2013, inclusive, either as
required by an applicable memorandum of understanding or by the
direction of the Department of Human Resources for excluded
employees, to participate in the Personal Leave Program 2012 (PLP
2012 Program), under which each employee would receive a reduction in
pay not greater than 5% in exchange for 8 hours of PLP 2012 Program
leave credits per month.
(19) Existing law requires the department to adopt rules governing
hours of work and overtime compensation and the keeping of related
records, except that conflicting provisions of a memorandum of
understanding are controlling, as specified.
This bill would require the department, notwithstanding any
conflicting provisions of a memorandum of understanding, to adopt a
plan for the period from July 1, 2012, to June 30, 2013, inclusive,
by which all state employees, except as specified, who are not
subject to the PLP 2012 Program, as described above, shall be
furloughed for one workday per calendar month, and to adopt rules for
the implementation, administration, and enforcement of this furlough
plan.
(20) Existing law provides that the State Compensation Insurance
Fund shall not be subject to the provisions of the Government Code
made applicable to state agencies generally or collectively, unless
the provision specifically names the fund as an agency to which it
applies. Existing law also provides that employee positions funded by
the State Compensation Insurance Fund are exempt from any hiring
freezes and staff cutbacks otherwise required by law.
This bill would provide that employees of the fund shall, without
limitation, be subject to any and all reductions in state employee
compensation imposed by the Legislature on other state employees for
the period from July 1, 2012, to June 30, 2013, inclusive, regardless
of the means adopted to effect those reductions. With the exception
of those reductions, the bill would further provide that if any of
these provisions, or a practice or procedure adopted pursuant to
these provisions, conflicts with a memorandum of understanding, the
memorandum of understanding shall be controlling, as specified.
(21) Existing law authorizes the Department of General Services
to, relative to contracts for goods, services, information
technology, and telecommunications, use a negotiation process if the
department finds that certain conditions exist, as specified.
This bill would authorize, until January 1, 2018, the California
Technology Agency to utilize that negotiation process for the purpose
of procuring information technology and telecommunications goods and
services on behalf of state departments and information technology
projects. The bill would require an annual report to the Legislature,
as specified.
(22) Existing law establishes a workers' compensation system,
administered by the Administrative Director of the Division of
Workers' Compensation, to compensate an injured employee for injuries
sustained in the course of his or her employment. Existing law
requires that the Director of Industrial Relations levy and collect
assessments from employers in an amount determined by the director to
be sufficient to fund specified workers' compensation programs
implemented in the state. In that connection, existing law requires
the director to include in the total assessment amount the Department
of Industrial Relations' costs for administering the assessment,
including the collections process and the cost of reimbursing the
Franchise Tax Board or another agency or department for its cost of
collection activities.
Existing law requires the Department of Industrial Relations to
enter into an agreement with the Franchise Tax Board that transfers
responsibility from the Department of Industrial Relations to the
Franchise Tax Board for the collection of delinquent fees, wages,
penalties, and costs, and any interest, including the assessments
from employers in an amount determined by the Director of Industrial
Relations to be sufficient to fund specified workers' compensation
programs implemented in the state and any penalties.
Existing law also authorizes the Department of Industrial
Relations to enter into an agreement with the Employment Development
Department that provides for the transfer of all or part of the
responsibility from the Department of Industrial Relations, or any
office or division within that department, to the Employment
Development Department for the collection of assessments, as
specified, arising out of the enforcement of any law within the
jurisdiction of the Department of Industrial Relations or any office
or division within that department, as provided.
This bill would repeal the requirement that the Department of
Industrial Relations enter into an agreement with the Franchise Tax
Board to transfer responsibility from the Department of Industrial
Relations to the Franchise Tax Board for the collection of delinquent
fees, wages, penalties, and costs, and any interest, including the
assessments from employers in an amount determined by the Director of
Industrial Relations to be sufficient to fund specified workers'
compensation programs implemented in the state and any penalties.
This bill would require the Director of Industrial Relations to
include in that total assessment amount the cost of reimbursing the
Employment Development Department or another agency or department for
its cost of collection activities, as provided. This bill would make
other conforming changes.
(23) The Budget Bill, enacted as the Budget Act of 2012, would
make appropriations for the support of state government for the
2012-13 fiscal year.
This bill would amend the Budget Act of 2012 by revising an item
of appropriation in the Budget Act of 2012.
(24) This bill would appropriate $1,000 from the General Fund to
the Department of Finance to implement this bill.
(25) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17206 of the Business and Professions Code is
amended to read:
17206. Civil Penalty for Violation of Chapter
(a) Any person who engages, has engaged, or proposes to engage in
unfair competition shall be liable for a civil penalty not to exceed
two thousand five hundred dollars ($2,500) for each violation, which
shall be assessed and recovered in a civil action brought in the name
of the people of the State of California by the Attorney General, by
any district attorney, by any county counsel authorized by agreement
with the district attorney in actions involving violation of a
county ordinance, by any city attorney of a city having a population
in excess of 750,000, by any city attorney of any city and county,
or, with the consent of the district attorney, by a city prosecutor
in any city having a full-time city prosecutor, in any court of
competent jurisdiction.
(b) The court shall impose a civil penalty for each violation of
this chapter. In assessing the amount of the civil penalty, the court
shall consider any one or more of the relevant circumstances
presented by any of the parties to the case, including, but not
limited to, the following: the nature and seriousness of the
misconduct, the number of violations, the persistence of the
misconduct, the length of time over which the misconduct occurred,
the willfulness of the defendant's misconduct, and the defendant's
assets, liabilities, and net worth.
(c) If the action is brought by the Attorney General, one-half of
the penalty collected shall be paid to the treasurer of the county in
which the judgment was entered, and one-half to the General Fund. If
the action is brought by a district attorney or county counsel, the
penalty collected shall be paid to the treasurer of the county in
which the judgment was entered. Except as provided in subdivision
(e), if the action is brought by a city attorney or city prosecutor,
one-half of the penalty collected shall be paid to the treasurer of
the city in which the judgment was entered, and one-half to the
treasurer of the county in which the judgment was entered. The
aforementioned funds shall be for the exclusive use by the Attorney
General, the district attorney, the county counsel, and the city
attorney for the enforcement of consumer protection laws.
(d) The Unfair Competition Law Fund is hereby created as a special
account within the General Fund in the State Treasury. The portion
of penalties that is payable to the General Fund or to the Treasurer
recovered by the Attorney General from an action or settlement of a
claim made by the Attorney General pursuant to this chapter or
Chapter 1 (commencing with Section 17500) of Part 3 shall be
deposited into this fund. Moneys in this fund, upon appropriation by
the Legislature, shall be used by the Attorney General to support
investigations and prosecutions of California's consumer protection
laws, including implementation of judgments obtained from such
prosecutions or investigations and other activities which are in
furtherance of this chapter or Chapter 1 (commencing with Section
17500) of Part 3. Notwithstanding Section 13340 of the Government
Code, any civil penalties deposited in the fund pursuant to the
National Mortgage Settlement, as provided in Section 12531 of the
Government Code, are continuously appropriated to the Department of
Justice for the purpose of offsetting General Fund costs incurred by
the Department of Justice.
(e) If the action is brought at the request of a board within the
Department of Consumer Affairs or a local consumer affairs agency,
the court shall determine the reasonable expenses incurred by the
board or local agency in the investigation and prosecution of the
action.
Before any penalty collected is paid out pursuant to subdivision
(c), the amount of any reasonable expenses incurred by the board
shall be paid to the Treasurer for deposit in the special fund of the
board described in Section 205. If the board has no such special
fund, the moneys shall be paid to the Treasurer. The amount of any
reasonable expenses incurred by a local consumer affairs agency shall
be paid to the general fund of the municipality or county that funds
the local agency.
(f) If the action is brought by a city attorney of a city and
county, the entire amount of the penalty collected shall be paid to
the treasurer of the city and county in which the judgment was
entered for the exclusive use by the city attorney for the
enforcement of consumer protection laws. However, if the action is
brought by a city attorney of a city and county for the purposes of
civil enforcement pursuant to Section 17980 of the Health and Safety
Code or Article 3 (commencing with Section 11570) of Chapter 10 of
Division 10 of the Health and Safety Code, either the penalty
collected shall be paid entirely to the treasurer of the city and
county in which the judgment was entered or, upon the request of the
city attorney, the court may order that up to one-half of the
penalty, under court supervision and approval, be paid for the
purpose of restoring, maintaining, or enhancing the premises that
were the subject of the action, and that the balance of the penalty
be paid to the treasurer of the city and county.
SEC. 2. Section 1936 of the Civil Code, as amended by Section 1 of
Chapter 531 of the Statutes of 2011, is amended to read:
1936. (a) For the purpose of this section, the following
definitions shall apply:
(1) "Rental company" means a person or entity in the business of
renting passenger vehicles to the public.
(2) "Renter" means any person in a manner obligated under a
contract for the lease or hire of a passenger vehicle from a rental
company for a period of less than 30 days.
(3) "Authorized driver" means (A) the renter, (B) the renter's
spouse if that person is a licensed driver and satisfies the rental
company's minimum age requirement, (C) the renter's employer or
coworker if he or she is engaged in business activity with the
renter, is a licensed driver, and satisfies the rental company's
minimum age requirement, and (D) a person expressly listed by the
rental company on the renter's contract as an authorized driver.
(4) (A) "Customer facility charge" means any fee, including an
alternative fee, required by an airport to be collected by a rental
company from a renter for any of the following purposes:
(i) To finance, design, and construct consolidated airport car
rental facilities.
(ii) To finance, design, construct, and operate common-use
transportation systems that move passengers between airport terminals
and those consolidated car rental facilities, and acquire vehicles
for use in that system.
(iii) To finance, design, and construct terminal modifications
solely to accommodate and provide customer access to common-use
transportation systems.
(B) The aggregate amount to be collected shall not exceed the
reasonable costs, as determined by an independent audit paid for by
the airport, to finance, design, and construct those facilities.
Copies of the audit shall be provided to the Assembly and Senate
Committees on Judiciary, the Assembly Committee on Transportation,
and the Senate Committee on Transportation and Housing. In the case
of a transportation system, the audit also shall consider the
reasonable costs of providing the transit system or busing network.
Notwithstanding clause (iii) of subparagraph (A), the fees designated
as a customer facility charge shall not be used to pay for terminal
expansion, gate expansion, runway expansion, changes in hours of
operation, or changes in the number of flights arriving or departing
from the airport.
(C) Except as provided in subparagraph (D), the authorization
given pursuant to this section for an airport to impose a customer
facility charge shall become inoperative when the bonds used for
financing are paid.
(D) If a bond or other form of indebtedness is not used for
financing, or the bond or other form of indebtedness used for
financing has been paid, the Oakland International Airport may
require the collection of a customer facility charge for a period of
up to 10 years from the imposition of the charge for the purposes
allowed by, and subject to the conditions imposed by, this section.
(5) "Damage waiver" means a rental company's agreement not to hold
a renter liable for all or any portion of any damage or loss related
to the rented vehicle, any loss of use of the rented vehicle, or any
storage, impound, towing, or administrative charges.
(6) "Electronic surveillance technology" means a technological
method or system used to observe, monitor, or collect information,
including telematics, Global Positioning System (GPS), wireless
technology, or location-based technologies. "Electronic surveillance
technology" does not include event data recorders (EDR), sensing and
diagnostic modules (SDM), or other systems that are used either:
(A) For the purpose of identifying, diagnosing, or monitoring
functions related to the potential need to repair, service, or
perform maintenance on the rental vehicle.
(B) As part of the vehicle's airbag sensing and diagnostic system
in order to capture safety systems-related data for retrieval after a
crash has occurred or in the event that the collision sensors are
activated to prepare the decisionmaking computer to make the
determination to deploy or not to deploy the airbag.
(7) "Estimated time for replacement" means the number of hours of
labor, or fraction thereof, needed to replace damaged vehicle parts
as set forth in collision damage estimating guides generally used in
the vehicle repair business and commonly known as "crash books."
(8) "Estimated time for repair" means a good faith estimate of the
reasonable number of hours of labor, or fraction thereof, needed to
repair damaged vehicle parts.
(9) "Membership program" means a service offered by a rental
company that permits customers to bypass the rental counter and go
directly to the car previously reserved. A membership program shall
meet all of the following requirements:
(A) The renter initiates enrollment by completing an application
on which the renter can specify a preference for type of vehicle and
acceptance or declination of optional services.
(B) The rental company fully discloses, prior to the enrollee's
first rental as a participant in the program, all terms and
conditions of the rental agreement as well as all required
disclosures.
(C) The renter may terminate enrollment at any time.
(D) The rental company fully explains to the renter that
designated preferences, as well as acceptance or declination of
optional services, may be changed by the renter at any time for the
next and future rentals.
(E) An employee designated to receive the form specified in
subparagraph (C) of paragraph (1) of subdivision (t) is present at
the lot where the renter takes possession of the car, to receive any
change in the rental agreement from the renter.
(10) "Passenger vehicle" means a passenger vehicle as defined in
Section 465 of the Vehicle Code.
(b) Except as limited by subdivision (c), a rental company and a
renter may agree that the renter will be responsible for no more than
all of the following:
(1) Physical or mechanical damage to the rented vehicle up to its
fair market value, as determined in the customary market for the sale
of that vehicle, resulting from collision regardless of the cause of
the damage.
(2) Loss due to theft of the rented vehicle up to its fair market
value, as determined in the customary market for the sale of that
vehicle, provided that the rental company establishes by clear and
convincing evidence that the renter or the authorized driver failed
to exercise ordinary care while in possession of the vehicle. In
addition, the renter shall be presumed to have no liability for any
loss due to theft if (A) an authorized driver has possession of the
ignition key furnished by the rental company or an authorized driver
establishes that the ignition key furnished by the rental company was
not in the vehicle at the time of the theft, and (B) an authorized
driver files an official report of the theft with the police or other
law enforcement agency within 24 hours of learning of the theft and
reasonably cooperates with the rental company and the police or other
law enforcement agency in providing information concerning the
theft. The presumption set forth in this paragraph is a presumption
affecting the burden of proof which the rental company may rebut by
establishing that an authorized driver committed, or aided and
abetted the commission of, the theft.
(3) Physical damage to the rented vehicle up to its fair market
value, as determined in the customary market for the sale of that
vehicle, resulting from vandalism occurring after, or in connection
with, the theft of the rented vehicle. However, the renter shall have
no liability for any damage due to vandalism if the renter would
have no liability for theft pursuant to paragraph (2).
(4) Physical damage to the rented vehicle up to a total of five
hundred dollars ($500) resulting from vandalism unrelated to the
theft of the rented vehicle.
(5) Actual charges for towing, storage, and impound fees paid by
the rental company if the renter is liable for damage or loss.
(6) An administrative charge, which shall include the cost of
appraisal and all other costs and expenses incident to the damage,
loss, repair, or replacement of the rented vehicle.
(c) The total amount of the renter's liability to the rental
company resulting from damage to the rented vehicle shall not exceed
the sum of the following:
(1) The estimated cost of parts which the rental company would
have to pay to replace damaged vehicle parts. All discounts and price
reductions or adjustments that are or will be received by the rental
company shall be subtracted from the estimate to the extent not
already incorporated in the estimate, or otherwise promptly credited
or refunded to the renter.
(2) The estimated cost of labor to replace damaged vehicle parts,
which shall not exceed the product of (A) the rate for labor usually
paid by the rental company to replace vehicle parts of the type that
were damaged and (B) the estimated time for replacement. All
discounts and price reductions or adjustments that are or will be
received by the rental company shall be subtracted from the estimate
to the extent not already incorporated in the estimate, or otherwise
promptly credited or refunded to the renter.
(3) (A) The estimated cost of labor to repair damaged vehicle
parts, which shall not exceed the lesser of the following:
(i) The product of the rate for labor usually paid by the rental
company to repair vehicle parts of the type that were damaged and the
estimated time for repair.
(ii) The sum of the estimated labor and parts costs determined
under paragraphs (1) and (2) to replace the same vehicle parts.
(B) All discounts and price reductions or adjustments that are or
will be received by the rental company shall be subtracted from the
estimate to the extent not already incorporated in the estimate, or
otherwise promptly credited or refunded to the renter.
(4) For the purpose of converting the estimated time for repair
into the same units of time in which the rental rate is expressed, a
day shall be deemed to consist of eight hours.
(5) Actual charges for towing, storage, and impound fees paid by
the rental company.
(6) The administrative charge described in paragraph (6) of
subdivision (b) shall not exceed (A) fifty dollars ($50) if the total
estimated cost for parts and labor is more than one hundred dollars
($100) up to and including five hundred dollars ($500), (B) one
hundred dollars ($100) if the total estimated cost for parts and
labor exceeds five hundred dollars ($500) up to and including one
thousand five hundred dollars ($1,500), and (C) one hundred fifty
dollars ($150) if the total estimated cost for parts and labor
exceeds one thousand five hundred dollars ($1,500). An administrative
charge shall not be imposed if the total estimated cost of parts and
labor is one hundred dollars ($100) or less.
(d) (1) The total amount of an authorized driver's liability to
the rental company, if any, for damage occurring during the
authorized driver's operation of the rented vehicle shall not exceed
the amount of the renter's liability under subdivision (c).
(2) A rental company shall not recover from the renter or other
authorized driver an amount exceeding the renter's liability under
subdivision (c).
(3) A claim against a renter resulting from damage or loss,
excluding loss of use, to a rental vehicle shall be reasonably and
rationally related to the actual loss incurred. A rental company
shall mitigate damages where possible and shall not assert or collect
a claim for physical damage which exceeds the actual costs of the
repairs performed or the estimated cost of repairs, if the rental
company chooses not to repair the vehicle, including all discounts
and price reductions. However, if the vehicle is a total loss
vehicle, the claim shall not exceed the total loss vehicle value
established in accordance with procedures that are customarily used
by insurance companies when paying claims on total loss vehicles,
less the proceeds from salvaging the vehicle, if those proceeds are
retained by the rental company.
(4) If insurance coverage exists under the renter's applicable
personal or business insurance policy and the coverage is confirmed
during regular business hours, the renter may require that the rental
company submit any claims to the renter's applicable personal or
business insurance carrier. The rental company shall not make any
written or oral representations that it will not present claims or
negotiate with the renter's insurance carrier. For purposes of this
paragraph, confirmation of coverage includes telephone confirmation
from insurance company representatives during regular business hours.
Upon request of the renter and after confirmation of coverage, the
amount of claim shall be resolved between the insurance carrier and
the rental company. The renter shall remain responsible for payment
to the rental car company for any loss sustained that the renter's
applicable personal or business insurance policy does not cover.
(5) A rental company shall not recover from the renter or other
authorized driver for an item described in subdivision (b) to the
extent the rental company obtains recovery from another person.
(6) This section applies only to the maximum liability of a renter
or other authorized driver to the rental company resulting from
damage to the rented vehicle and not to the liability of another
person.
(e) (1) Except as provided in subdivision (f), a damage waiver
shall provide or, if not expressly stated in writing, shall be deemed
to provide that the renter has no liability for a damage, loss, loss
of use, or a cost or expense incident thereto.
(2) Except as provided in subdivision (f), every limitation,
exception, or exclusion to a damage waiver is void and unenforceable.
(f) A rental company may provide in the rental contract that a
damage waiver does not apply under any of the following
circumstances:
(1) Damage or loss results from an authorized driver's (A)
intentional, willful, wanton, or reckless conduct, (B) operation of
the vehicle under the influence of drugs or alcohol in violation of
Section 23152 of the Vehicle Code, (C) towing or pushing anything, or
(D) operation of the vehicle on an unpaved road if the damage or
loss is a direct result of the road or driving conditions.
(2) Damage or loss occurs while the vehicle is (A) used for
commercial hire, (B) used in connection with conduct that could be
properly charged as a felony, (C) involved in a speed test or contest
or in driver training activity, (D) operated by a person other than
an authorized driver, or (E) operated outside the United States.
(3) An authorized driver who has (A) provided fraudulent
information to the rental company, or (B) provided false information
and the rental company would not have rented the vehicle if it had
instead received true information.
(g) (1) A rental company that offers or provides a damage waiver
for any consideration in addition to the rental rate shall clearly
and conspicuously disclose the following information in the rental
contract or holder in which the contract is placed and, also, in
signs posted at the place, such as the counter, where the renter
signs the rental contract, and, for renters who are enrolled in the
rental company's membership program, in a sign that shall be posted
in a location clearly visible to those renters as they enter the
location where their reserved rental cars are parked or near the exit
of the bus or other conveyance that transports the enrollee to a
reserved car: (A) the nature of the renter's liability, such as
liability for all collision damage regardless of cause, (B) the
extent of the renter's liability, such as liability for damage or
loss up to a specified amount, (C) the renter's personal insurance
policy or the credit card used to pay for the car rental transaction
may provide coverage for all or a portion of the renter's potential
liability, (D) the renter should consult with his or her insurer to
determine the scope of insurance coverage, including the amount of
the deductible, if any, for which the renter is obligated, (E) the
renter may purchase an optional damage waiver to cover all liability,
subject to whatever exceptions the rental company expressly lists
that are permitted under subdivision (f), and (F) the range of
charges for the damage waiver.
(2) In addition to the requirements of paragraph (1), a rental
company that offers or provides a damage waiver shall orally disclose
to all renters, except those who are participants in the rental
company's membership program, that the damage waiver may be
duplicative of coverage that the customer maintains under his or her
own policy of motor vehicle insurance. The renter's receipt of the
oral disclosure shall be demonstrated through the renter's
acknowledging receipt of the oral disclosure near that part of the
contract where the renter indicates, by the renter's own initials,
his or her acceptance or declination of the damage waiver. Adjacent
to that same part, the contract also shall state that the damage
waiver is optional. Further, the contract for these renters shall
include a clear and conspicuous written disclosure that the damage
waiver may be duplicative of coverage that the customer maintains
under his or her own policy of motor vehicle insurance.
(3) The following is an example, for purposes of illustration and
not limitation, of a notice fulfilling the requirements of paragraph
(1) for a rental company that imposes liability on the renter for
collision damage to the full value of the vehicle:
"NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY AND OPTIONAL DAMAGE
WAIVER
You are responsible for all collision damage to the rented vehicle
even if someone else caused it or the cause is unknown. You are
responsible for the cost of repair up to the value of the vehicle,
and towing, storage, and impound fees.
Your own insurance, or the issuer of the credit card you use to
pay for the car rental transaction, may cover all or part of your
financial responsibility for the rented vehicle. You should check
with your insurance company, or credit card issuer, to find out about
your coverage and the amount of the deductible, if any, for which
you may be liable.
Further, if you use a credit card that provides coverage for your
potential liability, you should check with the issuer to determine if
you must first exhaust the coverage limits of your own insurance
before the credit card coverage applies.
The rental company will not hold you responsible if you buy a
damage waiver. But a damage waiver will not protect you if (list
exceptions)."
(A) When the above notice is printed in the rental contract or
holder in which the contract is placed, the following shall be
printed immediately following the notice:
"The cost of an optional damage waiver is $____ for every (day or
week)."
(B) When the above notice appears on a sign, the following shall
appear immediately adjacent to the notice:
"The cost of an optional damage waiver is $____ to $____ for every
(day or week), depending upon the vehicle rented."
(h) Notwithstanding any other provision of law, a rental company
may sell a damage waiver subject to the following rate limitations
for each full or partial 24-hour rental day for the damage waiver.
(1) For rental vehicles that the rental company designates as an
"economy car," "subcompact car," "compact car," or another term
having similar meaning when offered for rental, or another vehicle
having a manufacturer's suggested retail price of nineteen thousand
dollars ($19,000) or less, the rate shall not exceed nine dollars
($9).
(2) For rental vehicles that have a manufacturer's suggested
retail price from nineteen thousand one dollars ($19,001) to
thirty-four thousand nine hundred ninety-nine dollars ($34,999),
inclusive, and that are also either vehicles of next year's model, or
not older than the previous year's model, the rate shall not exceed
fifteen dollars ($15). For those rental vehicles older than the
previous year's model-year, the rate shall not exceed nine dollars
($9).
(i) The manufacturer's suggested retail prices described in
subdivision (h) shall be adjusted annually to reflect changes from
the previous year in the Consumer Price Index. For the purposes of
this section, "Consumer Price Index" means the United States Consumer
Price Index for All Urban Consumers, for all items.
(j) A rental company that disseminates in this state an
advertisement containing a rental rate shall include in that
advertisement a clearly readable statement of the charge for a damage
waiver and a statement that a damage waiver is optional.
(k) (1) A rental company shall not require the purchase of a
damage waiver, optional insurance, or another optional good or
service.
(2) A rental company shall not engage in any unfair, deceptive, or
coercive conduct to induce a renter to purchase the damage waiver,
optional insurance, or another optional good or service, including
conduct such as, but not limited to, refusing to honor the renter's
reservation, limiting the availability of vehicles, requiring a
deposit, or debiting or blocking the renter's credit card account for
a sum equivalent to a deposit if the renter declines to purchase the
damage waiver, optional insurance, or another optional good or
service.
(l) (1) In the absence of express permission granted by the
renter subsequent to damage to, or loss of, the vehicle, a rental
company shall not seek to recover any portion of a claim arising out
of damage to, or loss of, the rented vehicle by processing a credit
card charge or causing a debit or block to be placed on the renter's
credit card account.
(2) A rental company shall not engage in any unfair, deceptive, or
coercive tactics in attempting to recover or in recovering on any
claim arising out of damage to, or loss of, the rented vehicle.
(m) (1) A customer facility charge may be collected by a rental
company under the following circumstances:
(A) Collection of the fee by the rental company is required by an
airport operated by a city, a county, a city and county, a joint
powers authority, a special district, or the San Diego County
Regional Airport Authority formed pursuant to Division 17 (commencing
with Section 170000) of the Public Utilities Code.
(B) The fee is calculated on a per contract basis or as provided
in paragraph (2).
(C) The fee is a user fee, not a tax imposed upon real property or
an incidence of property ownership under Article XIII D of the
California Constitution.
(D) Except as otherwise provided in subparagraph (E), the fee
shall be ten dollars ($10) per contract or the amount provided in
paragraph (2).
(E) The fee for a consolidated rental car facility shall be
collected only from customers of on-airport rental car companies. If
the fee imposed by the airport is for both a consolidated rental car
facility and a common-use transportation system, the fee collected
from customers of on-airport rental car companies shall be ten
dollars ($10) or the amount provided in paragraph (2), but the fee
imposed on customers of off-airport rental car companies who are
transported on the common-use transportation system is proportionate
to the costs of the common-use transportation system only. The fee is
uniformly applied to each class of on-airport or off-airport
customers, provided that the airport requires off-airport customers
to use the common-use transportation system. For purposes of this
subparagraph, "on-airport rental car company" means a rental company
operating under an airport property lease or an airport concession or
license agreement whose customers use or will use the consolidated
rental car facility and the collection of the fee as to those
customers is consistent with subparagraph (C).
(F) Revenues collected from the fee do not exceed the reasonable
costs of financing, designing, and constructing the facility and
financing, designing, constructing, and operating any common-use
transportation system, or acquiring vehicles for use in that system,
and shall not be used for any other purpose.
(G) The fee is separately identified on the rental agreement.
(H) This paragraph does not apply to fees which are governed by
Section 50474.1 of the Government Code or Section 57.5 of the San
Diego Unified Port District Act.
(I) For any airport seeking to require rental car companies to
collect an alternative customer facility charge pursuant to paragraph
(2), the following provisions apply:
(i) Notwithstanding Section 10231.5 of the Government Code, the
airport shall provide reports on an annual basis to the Senate and
Assembly Committees on Judiciary detailing all of the following:
(I) The total amount of the customer facility charge collected.
(II) How the funds are being spent.
(III) The amount of and reason for any changes in the airport's
budget or financial needs for the facility or common-use
transportation system.
(IV) Whether airport concession fees authorized by Section 1936.01
have increased since the prior report, if any.
(ii) The airport shall complete the independent audit required by
subparagraph (B) of paragraph (4) of subdivision (a) prior to initial
collection of the customer facility charge, prior to any increase
pursuant to paragraph (2), and every three years after initial
collection and any increase until such time as the fee authorization
becomes inoperative pursuant to subparagraph (C) of paragraph (4) of
subdivision (a).
(iii) Use of the bonds shall be limited to construction and design
of the consolidated rental car facility, terminal modifications, and
operating costs of the common-use transportation system, as
specified in paragraph (4) of subdivision (a).
(2) Any airport may require rental car companies to collect an
alternative customer facility charge under the following conditions:
(A) The airport first conducts a publicly noticed hearing pursuant
to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950)
of Part 1 of Division 2 of Title 5 of the Government Code) to review
the costs of financing the design and construction of a consolidated
rental car facility and the design, construction, and operation of
any common-use transportation system in which all of the following
occur:
(i) The airport establishes the amount of revenue necessary to
finance the reasonable cost to design and construct a consolidated
rental car facility and to design, construct, and operate any
common-use transportation system, or acquire vehicles for use in that
system, based on evidence presented during the hearing.
(ii) The airport finds, based on evidence presented during the
hearing, that the fee authorized in paragraph (1) will not generate
sufficient revenue to finance the reasonable costs to design and
construct a consolidated rental car facility and to design,
construct, and operate any common-use transportation system, or
acquire vehicles for use in that system.
(iii) The airport finds that the reasonable cost of the project
requires the additional amount of revenue that would be generated by
the proposed daily rate, including any rate increase, authorized
pursuant to this paragraph.
(iv) The airport outlines each of the following:
(I) Steps it has taken to limit costs.
(II) Other potential alternatives for meeting its revenue needs
other than the collection of the fee.
(III) The extent to which rental car companies or other businesses
or individuals using the facility or common-use transportation
system will pay for the costs associated with these facilities and
systems other than the fee from rental customers.
(B) The airport may not require the fee authorized in this
paragraph to be collected at any time that the fee authorized in
paragraph (1) of this subdivision is being collected.
(C) Pursuant to the procedure set forth in this subdivision, the
fee may be collected at a rate charged on a per-day basis subject to
the following conditions:
(i) Commencing January 1, 2011, the amount of the fee may not
exceed six dollars ($6) per day.
(ii) Commencing January 1, 2014, the amount of the fee may not
exceed seven dollars and fifty cents ($7.50) per day.
(iii) Commencing January 1, 2017, and thereafter, the amount of
the fee may not exceed nine dollars ($9) per day.
(iv) At no time shall the fee authorized in this paragraph be
collected from any customer for more than five days for each
individual rental car contract.
(v) An airport subject to this paragraph shall initiate the
process for obtaining the authority to require or increase the
alternative fee no later than January 1, 2018. Any airport that
obtains the authority to require or increase an alternative fee shall
be authorized to continue collecting that fee until the fee
authorization becomes inoperative pursuant to subparagraph (C) of
paragraph (4) of subdivision (a).
(3) Notwithstanding any other provision of law, including, but not
limited to, Part 1 (commencing with Section 6001) to Part 1.7
(commencing with Section 7280), inclusive, of Division 2 of the
Revenue and Taxation Code, the fees collected pursuant to this
section, or another law whereby a local agency operating an airport
requires a rental car company to collect a facility financing fee
from its customers, are not subject to sales, use, or transaction
taxes.
(n) (1) A rental company shall only advertise, quote, and charge a
rental rate that includes the entire amount except taxes, a customer
facility charge, if any, and a mileage charge, if any, that a renter
must pay to hire or lease the vehicle for the period of time to
which the rental rate applies. A rental company shall not charge in
addition to the rental rate, taxes, a customer facility charge, if
any, and a mileage charge, if any, any fee that is required to be
paid by the renter as a condition of hiring or leasing the vehicle,
including, but not limited to, required fuel or airport surcharges
other than customer facility charges, nor a fee for transporting the
renter to the location where the rented vehicle will be delivered to
the renter.
(2) In addition to the rental rate, taxes, customer facility
charges, if any, and mileage charges, if any, a rental company may
charge for an item or service provided in connection with a
particular rental transaction if the renter could have avoided
incurring the charge by choosing not to obtain or utilize the
optional item or service. Items and services for which the rental
company may impose an additional charge include, but are not limited
to, optional insurance and accessories requested by the renter,
service charges incident to the renter's optional return of the
vehicle to a location other than the location where the vehicle was
hired or leased, and charges for refueling the vehicle at the
conclusion of the rental transaction in the event the renter did not
return the vehicle with as much fuel as was in the fuel tank at the
beginning of the rental. A rental company also may impose an
additional charge based on reasonable age criteria established by the
rental company.
(3) A rental company shall not charge a fee for authorized drivers
in addition to the rental charge for an individual renter.
(4) If a rental company states a rental rate in print
advertisement or in a telephonic, in-person, or computer-transmitted
quotation, the rental company shall disclose clearly in that
advertisement or quotation the terms of mileage conditions relating
to the advertised or quoted rental rate, including, but not limited
to, to the extent applicable, the amount of mileage and gas charges,
the number of miles for which no charges will be imposed, and a
description of geographic driving limitations within the United
States and Canada.
(5) (A) When a rental rate is stated in an advertisement,
quotation, or reservation in connection with a car rental at an
airport where a customer facility charge is imposed, the rental
company shall disclose clearly the existence and amount of the
customer facility charge. For purposes of this subparagraph,
advertisements include radio, television, other electronic media, and
print advertisements. For purposes of this subparagraph, quotations
and reservations include those that are telephonic, in-person, and
computer-transmitted. If the rate advertisement is intended to
include transactions at more than one airport imposing a customer
facility charge, a range of fees may be stated in the advertisement.
However, all rate advertisements that include car rentals at airport
destinations shall clearly and conspicuously include a toll-free
telephone number whereby a customer can be told the specific amount
of the customer facility charge to which the customer will be
obligated.
(B) If a person or entity other than a rental car company,
including a passenger carrier or a seller of travel services,
advertises or quotes a rate for a car rental at an airport where a
customer facility charge is imposed, that person or entity shall,
provided that he, she, or it is provided with information about the
existence and amount of the fee, to the extent not specifically
prohibited by federal law, clearly disclose the existence and amount
of the fee in any telephonic, in-person, or computer-transmitted
quotation at the time of making an initial quotation of a rental rate
and at the time of making a reservation of a rental car. If a rental
car company provides the person or entity with rate and customer
facility charge information, the rental car company is not
responsible for the failure of that person or entity to comply with
this subparagraph when quoting or confirming a rate to a third person
or entity.
(6) If a rental company delivers a vehicle to a renter at a
location other than the location where the rental company normally
carries on its business, the rental company shall not charge the
renter an amount for the rental for the period before the delivery of
the vehicle. If a rental company picks up a rented vehicle from a
renter at a location other than the location where the rental company
normally carries on its business, the rental company shall not
charge the renter an amount for the rental for the period after the
renter notifies the rental company to pick up the vehicle.
(o) A rental company shall not use, access, or obtain any
information relating to the renter's use of the rental vehicle that
was obtained using electronic surveillance technology, except in the
following circumstances:
(1) (A) When the equipment is used by the rental company only for
the purpose of locating a stolen, abandoned, or missing rental
vehicle after one of the following:
(i) The renter or law enforcement has informed the rental company
that the vehicle is missing or has been stolen or abandoned.
(ii) The rental vehicle has not been returned following one week
after the contracted return date, or by one week following the end of
an extension of that return date.
(iii) The rental company discovers the rental vehicle has been
stolen or abandoned, and, if stolen, it shall report the vehicle
stolen to law enforcement by filing a stolen vehicle report, unless
law enforcement has already informed the rental company that the
vehicle is missing or has been stolen or abandoned.
(B) If electronic surveillance technology is activated pursuant to
subparagraph (A), a rental company shall maintain a record, in
either electronic or written form, of information relevant to the
activation of that technology. That information shall include the
rental agreement, including the return date, and the date and time
the electronic surveillance technology was activated. The record
shall also include, if relevant, a record of written or other
communication with the renter, including communications regarding
extensions of the rental, police reports, or other written
communication with law enforcement officials. The record shall be
maintained for a period of at least 12 months from the time the
record is created and shall be made available upon the renter's
request. The rental company shall maintain and furnish explanatory
codes necessary to read the record. A rental company shall not be
required to maintain a record if electronic surveillance technology
is activated to recover a rental vehicle that is stolen or missing at
a time other than during a rental period.
(2) In response to a specific request from law enforcement
pursuant to a subpoena or search warrant.
(3) This subdivision does not prohibit a rental company from
equipping rental vehicles with GPS-based technology that provides
navigation assistance to the occupants of the rental vehicle, if the
rental company does not use, access, or obtain information relating
to the renter's use of the rental vehicle that was obtained using
that technology, except for the purposes of discovering or repairing
a defect in the technology and the information may then be used only
for that purpose.
(4) This subdivision does not prohibit a rental company from
equipping rental vehicles with electronic surveillance technology
that allows for the remote locking or unlocking of the vehicle at the
request of the renter, if the rental company does not use, access,
or obtain information relating to the renter's use of the rental
vehicle that was obtained using that technology, except as necessary
to lock or unlock the vehicle.
(5) This subdivision does not prohibit a rental company from
equipping rental vehicles with electronic surveillance technology
that allows the company to provide roadside assistance, such as
towing, flat tire, or fuel services, at the request of the renter, if
the rental company does not use, access, or obtain information
relating to the renter's use of the rental vehicle that was obtained
using that technology except as necessary to provide the requested
roadside assistance.
(6) This subdivision does not prohibit a rental company from
obtaining, accessing, or using information from electronic
surveillance technology for the sole purpose of determining the date
and time the vehicle is returned to the rental company, and the total
mileage driven and the vehicle fuel level of the returned vehicle.
This paragraph, however, shall apply only after the renter has
returned the vehicle to the rental company, and the information shall
only be used for the purpose described in this paragraph.
(p) A rental company shall not use electronic surveillance
technology to track a renter in order to impose fines or surcharges
relating to the renter's use of the rental vehicle.
(q) A renter may bring an action against a rental company for the
recovery of damages and appropriate equitable relief for a violation
of this section. The prevailing party shall be entitled to recover
reasonable attorney's fees and costs.
(r) A rental company that brings an action against a renter for
loss due to theft of the vehicle shall bring the action in the county
in which the renter resides or, if the renter is not a resident of
this state, in the jurisdiction in which the renter resides.
(s) A waiver of any of the provisions of this section shall be
void and unenforceable as contrary to public policy.
(t) (1) A rental company's disclosure requirements shall be
satisfied for renters who are enrolled in the rental company's
membership program if all of the following conditions are met:
(A) Prior to the enrollee's first rental as a participant in the
program, the renter receives, in writing, the following:
(i) All of the disclosures required by paragraph (1) of
subdivision (g), including the terms and conditions of the rental
agreement then in effect.
(ii) An Internet Web site address, as well as a contact number or
address, where the enrollee can learn of changes to the rental
agreement or to the laws of this state governing rental agreements
since the effective date of the rental company's most recent
restatement of the rental agreement and distribution of that
restatement to its members.
(B) At the commencement of each rental period, the renter is
provided, on the rental record or the folder in which it is inserted,
with a printed notice stating that he or she had either previously
selected or declined an optional damage waiver and that the renter
has the right to change preferences.
(C) At the commencement of each rental period, the rental company
provides, on the rearview mirror, a hanger on which a statement is
printed, in a box, in at least 12-point boldface type, notifying the
renter that the collision damage waiver offered by the rental company
may be duplicative of coverage that the customer maintains under his
or her own policy of motor vehicle insurance. If it is not feasible
to hang the statement from the rearview mirror, it shall be hung from
the steering wheel.
The hanger shall provide the renter a box to initial if he or she
(not his or her employer) has previously accepted or declined the
collision damage waiver and that he or she now wishes to change his
or her decision to accept or decline the collision damage waiver, as
follows:
"/-/ If I previously accepted the collision damage waiver, I now
decline it.
/-/ If I previously declined the collision damage waiver, I now
accept it."
The hanger shall also provide a box for the enrollee to indicate
whether this change applies to this rental transaction only or to all
future rental transactions. The hanger shall also notify the renter
that he or she may make that change, prior to leaving the lot, by
returning the form to an employee designated to receive the form who
is present at the lot where the renter takes possession of the car,
to receive any change in the rental agreement from the renter.
(2) (A) This subdivision is not effective unless the employee
designated pursuant to subparagraph (E) of paragraph (8) of
subdivision (a) is actually present at the required location.
(B) This subdivision does not relieve the rental company from the
disclosures required to be made within the text of a contract or
holder in which the contract is placed; in or on an advertisement
containing a rental rate; or in a telephonic, in-person, or
computer-transmitted quotation or reservation.
(u) The amendments made to this section during the 2001-02 Regular
Session of the Legislature do not affect litigation pending on or
before January 1, 2003, alleging a violation of Section 22325 of the
Business and Professions Code as it read at the time the action was
commenced.
(v) (1) When a rental company enters into a rental agreement in
the state for the rental of a vehicle to any renter who is not a
resident of this country and, as part of, or associated with, the
rental agreement, the renter purchases liability insurance, as
defined in subdivision (b) of Section 1758.85 of the Insurance Code,
from the rental company in its capacity as a rental car agent for an
authorized insurer, the rental company shall be authorized to accept,
and, if served as set forth in this subdivision, shall accept,
service of a summons and complaint and any other required documents
against the foreign renter for any accident or collision resulting
from the operation of the rental vehicle within the state during the
rental period. If the rental company has a registered agent for
service of process on file with the Secretary of State, process shall
be served on the rental company's registered agent, either by
first-class mail, return receipt requested, or by personal service.
(2) Within 30 days of acceptance of service of process, the rental
company shall, provide a copy of the summons and complaint and any
other required documents served in accordance with this subdivision
to the foreign renter by first-class mail, return receipt requested.
(3) Any plaintiff, or his or her representative, who elects to
serve the foreign renter by delivering a copy of the summons and
complaint and any other required documents to the rental company
pursuant to paragraph (1) shall agree to limit his or her recovery
against the foreign renter and the rental company to the limits of
the protection extended by the liability insurance.
(4) Notwithstanding the requirements of Sections 17450 to 17456,
inclusive, of the Vehicle Code, service of process in compliance with
paragraph (1) shall be deemed valid and effective service.
(5) Notwithstanding any other provision of law, the requirement
that the rental company accept service of process pursuant to
paragraph (1) shall not create any duty, obligation, or agency
relationship other than that provided in paragraph (1).
(w) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
SEC. 3. Section 1936 of the Civil Code, as added by Section 2 of
Chapter 531 of the Statutes of 2011, is amended to read:
1936. (a) For the purpose of this section, the following
definitions shall apply:
(1) "Rental company" means a person or entity in the business of
renting passenger vehicles to the public.
(2) "Renter" means any person in a manner obligated under a
contract for the lease or hire of a passenger vehicle from a rental
company for a period of less than 30 days.
(3) "Authorized driver" means (A) the renter, (B) the renter's
spouse if that person is a licensed driver and satisfies the rental
company's minimum age requirement, (C) the renter's employer or
coworker if he or she is engaged in business activity with the
renter, is a licensed driver, and satisfies the rental company's
minimum age requirement, and (D) a person expressly listed by the
rental company on the renter's contract as an authorized driver.
(4) (A) "Customer facility charge" means any fee, including an
alternative fee, required by an airport to be collected by a rental
company from a renter for any of the following purposes:
(i) To finance, design, and construct consolidated airport car
rental facilities.
(ii) To finance, design, construct, and operate common-use
transportation systems that move passengers between airport terminals
and those consolidated car rental facilities, and acquire vehicles
for use in that system.
(iii) To finance, design, and construct terminal modifications
solely to accommodate and provide customer access to common-use
transportation systems.
(B) The aggregate amount to be collected shall not exceed the
reasonable costs, as determined by an independent audit paid for by
the airport, to finance, design, and construct those facilities.
Copies of the audit shall be provided to the Assembly and Senate
Committees on Judiciary, the Assembly Committee on Transportation,
and the Senate Committee on Transportation and Housing. In the case
of a transportation system, the audit also shall consider the
reasonable costs of providing the transit system or busing network.
Notwithstanding clause (iii) of subparagraph (A), the fees designated
as a customer facility charge shall not be used to pay for terminal
expansion, gate expansion, runway expansion, changes in hours of
operation, or changes in the number of flights arriving or departing
from the airport.
(C) Except as provided in subparagraph (D), the authorization
given pursuant to this section for an airport to impose a customer
facility charge shall become inoperative when the bonds used for
financing are paid.
(D) If a bond or other form of indebtedness is not used for
financing, or the bond or other form of indebtedness used for
financing has been paid, the Oakland International Airport may
require the collection of a customer facility charge for a period of
up to 10 years from the imposition of the charge for the purposes
allowed by, and subject to the conditions imposed by, this section.
(5) "Damage waiver" means a rental company's agreement not to hold
a renter liable for all or any portion of any damage or loss related
to the rented vehicle, any loss of use of the rented vehicle, or any
storage, impound, towing, or administrative charges.
(6) "Electronic surveillance technology" means a technological
method or system used to observe, monitor, or collect information,
including telematics, Global Positioning System (GPS), wireless
technology, or location-based technologies. "Electronic surveillance
technology" does not include event data recorders (EDR), sensing and
diagnostic modules (SDM), or other systems that are used either:
(A) For the purpose of identifying, diagnosing, or monitoring
functions related to the potential need to repair, service, or
perform maintenance on the rental vehicle.
(B) As part of the vehicle's airbag sensing and diagnostic system
in order to capture safety systems-related data for retrieval after a
crash has occurred or in the event that the collision sensors are
activated to prepare the decisionmaking computer to make the
determination to deploy or not to deploy the airbag.
(7) "Estimated time for replacement" means the number of hours of
labor, or fraction thereof, needed to replace damaged vehicle parts
as set forth in collision damage estimating guides generally used in
the vehicle repair business and commonly known as "crash books."
(8) "Estimated time for repair" means a good faith estimate of the
reasonable number of hours of labor, or fraction thereof, needed to
repair damaged vehicle parts.
(9) "Membership program" means a service offered by a rental
company that permits customers to bypass the rental counter and go
directly to the car previously reserved. A membership program shall
meet all of the following requirements:
(A) The renter initiates enrollment by completing an application
on which the renter can specify a preference for type of vehicle and
acceptance or declination of optional services.
(B) The rental company fully discloses, prior to the enrollee's
first rental as a participant in the program, all terms and
conditions of the rental agreement as well as all required
disclosures.
(C) The renter may terminate enrollment at any time.
(D) The rental company fully explains to the renter that
designated preferences, as well as acceptance or declination of
optional services, may be changed by the renter at any time for the
next and future rentals.
(E) An employee designated to receive the form specified in
subparagraph (C) of paragraph (1) of subdivision (t) is present at
the lot where the renter takes possession of the car, to receive any
change in the rental agreement from the renter.
(10) "Passenger vehicle" means a passenger vehicle as defined in
Section 465 of the Vehicle Code.
(b) Except as limited by subdivision (c), a rental company and a
renter may agree that the renter will be responsible for no more than
all of the following:
(1) Physical or mechanical damage to the rented vehicle up to its
fair market value, as determined in the customary market for the sale
of that vehicle, resulting from collision regardless of the cause of
the damage.
(2) Loss due to theft of the rented vehicle up to its fair market
value, as determined in the customary market for the sale of that
vehicle, provided that the rental company establishes by clear and
convincing evidence that the renter or the authorized driver failed
to exercise ordinary care while in possession of the vehicle. In
addition, the renter shall be presumed to have no liability for any
loss due to theft if (A) an authorized driver has possession of the
ignition key furnished by the rental company or an authorized driver
establishes that the ignition key furnished by the rental company was
not in the vehicle at the time of the theft, and (B) an authorized
driver files an official report of the theft with the police or other
law enforcement agency within 24 hours of learning of the theft and
reasonably cooperates with the rental company and the police or other
law enforcement agency in providing information concerning the
theft. The presumption set forth in this paragraph is a presumption
affecting the burden of proof which the rental company may rebut by
establishing that an authorized driver committed, or aided and
abetted the commission of, the theft.
(3) Physical damage to the rented vehicle up to its fair market
value, as determined in the customary market for the sale of that
vehicle, resulting from vandalism occurring after, or in connection
with, the theft of the rented vehicle. However, the renter shall have
no liability for any damage due to vandalism if the renter would
have no liability for theft pursuant to paragraph (2).
(4) Physical damage to the rented vehicle up to a total of five
hundred dollars ($500) resulting from vandalism unrelated to the
theft of the rented vehicle.
(5) Actual charges for towing, storage, and impound fees paid by
the rental company if the renter is liable for damage or loss.
(6) An administrative charge, which shall include the cost of
appraisal and all other costs and expenses incident to the damage,
loss, repair, or replacement of the rented vehicle.
(c) The total amount of the renter's liability to the rental
company resulting from damage to the rented vehicle shall not exceed
the sum of the following:
(1) The estimated cost of parts which the rental company would
have to pay to replace damaged vehicle parts. All discounts and price
reductions or adjustments that are or will be received by the rental
company shall be subtracted from the estimate to the extent not
already incorporated in the estimate, or otherwise promptly credited
or refunded to the renter.
(2) The estimated cost of labor to replace damaged vehicle parts,
which shall not exceed the product of (A) the rate for labor usually
paid by the rental company to replace vehicle parts of the type that
were damaged and (B) the estimated time for replacement. All
discounts and price reductions or adjustments that are or will be
received by the rental company shall be subtracted from the estimate
to the extent not already incorporated in the estimate, or otherwise
promptly credited or refunded to the renter.
(3) (A) The estimated cost of labor to repair damaged vehicle
parts, which shall not exceed the lesser of the following:
(i) The product of the rate for labor usually paid by the rental
company to repair vehicle parts of the type that were damaged and the
estimated time for repair.
(ii) The sum of the estimated labor and parts costs determined
under paragraphs (1) and (2) to replace the same vehicle parts.
(B) All discounts and price reductions or adjustments that are or
will be received by the rental company shall be subtracted from the
estimate to the extent not already incorporated in the estimate, or
otherwise promptly credited or refunded to the renter.
(4) For the purpose of converting the estimated time for repair
into the same units of time in which the rental rate is expressed, a
day shall be deemed to consist of eight hours.
(5) Actual charges for towing, storage, and impound fees paid by
the rental company.
(6) The administrative charge described in paragraph (6) of
subdivision (b) shall not exceed (A) fifty dollars ($50) if the total
estimated cost for parts and labor is more than one hundred dollars
($100) up to and including five hundred dollars ($500), (B) one
hundred dollars ($100) if the total estimated cost for parts and
labor exceeds five hundred dollars ($500) up to and including one
thousand five hundred dollars ($1,500), and (C) one hundred fifty
dollars ($150) if the total estimated cost for parts and labor
exceeds one thousand five hundred dollars ($1,500). An administrative
charge shall not be imposed if the total estimated cost of parts and
labor is one hundred dollars ($100) or less.
(d) (1) The total amount of an authorized driver's liability to
the rental company, if any, for damage occurring during the
authorized driver's operation of the rented vehicle shall not exceed
the amount of the renter's liability under subdivision (c).
(2) A rental company shall not recover from the renter or other
authorized driver an amount exceeding the renter's liability under
subdivision (c).
(3) A claim against a renter resulting from damage or loss,
excluding loss of use, to a rental vehicle shall be reasonably and
rationally related to the actual loss incurred. A rental company
shall mitigate damages where possible and shall not assert or collect
a claim for physical damage which exceeds the actual costs of the
repairs performed or the estimated cost of repairs, if the rental
company chooses not to repair the vehicle, including all discounts
and price reductions. However, if the vehicle is a total loss
vehicle, the claim shall not exceed the total loss vehicle value
established in accordance with procedures that are customarily used
by insurance companies when paying claims on total loss vehicles,
less the proceeds from salvaging the vehicle, if those proceeds are
retained by the rental company.
(4) If insurance coverage exists under the renter's applicable
personal or business insurance policy and the coverage is confirmed
during regular business hours, the renter may require that the rental
company submit any claims to the renter's applicable personal or
business insurance carrier. The rental company shall not make any
written or oral representations that it will not present claims or
negotiate with the renter's insurance carrier. For purposes of this
paragraph, confirmation of coverage includes telephone confirmation
from insurance company representatives during regular business hours.
Upon request of the renter and after confirmation of coverage, the
amount of claim shall be resolved between the insurance carrier and
the rental company. The renter shall remain responsible for payment
to the rental car company for any loss sustained that the renter's
applicable personal or business insurance policy does not cover.
(5) A rental company shall not recover from the renter or other
authorized driver for an item described in subdivision (b) to the
extent the rental company obtains recovery from another person.
(6) This section applies only to the maximum liability of a renter
or other authorized driver to the rental company resulting from
damage to the rented vehicle and not to the liability of another
person.
(e) (1) Except as provided in subdivision (f), a damage waiver
shall provide or, if not expressly stated in writing, shall be deemed
to provide that the renter has no liability for a damage, loss, loss
of use, or a cost or expense incident thereto.
(2) Except as provided in subdivision (f), every limitation,
exception, or exclusion to a damage waiver is void and unenforceable.
(f) A rental company may provide in the rental contract that a
damage waiver does not apply under any of the following
circumstances:
(1) Damage or loss results from an authorized driver's (A)
intentional, willful, wanton, or reckless conduct, (B) operation of
the vehicle under the influence of drugs or alcohol in violation of
Section 23152 of the Vehicle Code, (C) towing or pushing anything, or
(D) operation of the vehicle on an unpaved road if the damage or
loss is a direct result of the road or driving conditions.
(2) Damage or loss occurs while the vehicle is (A) used for
commercial hire, (B) used in connection with conduct that could be
properly charged as a felony, (C) involved in a speed test or contest
or in driver training activity, (D) operated by a person other than
an authorized driver, or (E) operated outside the United States.
(3) An authorized driver who has (A) provided fraudulent
information to the rental company, or (B) provided false information
and the rental company would not have rented the vehicle if it had
instead received true information.
(g) (1) A rental company that offers or provides a damage waiver
for any consideration in addition to the rental rate shall clearly
and conspicuously disclose the following information in the rental
contract or holder in which the contract is placed and, also, in
signs posted at the place, such as the counter, where the renter
signs the rental contract, and, for renters who are enrolled in the
rental company's membership program, in a sign that shall be posted
in a location clearly visible to those renters as they enter the
location where their reserved rental cars are parked or near the exit
of the bus or other conveyance that transports the enrollee to a
reserved car: (A) the nature of the renter's liability, such as
liability for all collision damage regardless of cause, (B) the
extent of the renter's liability, such as liability for damage or
loss up to a specified amount, (C) the renter's personal insurance
policy or the credit card used to pay for the car rental transaction
may provide coverage for all or a portion of the renter's potential
liability, (D) the renter should consult with his or her insurer to
determine the scope of insurance coverage, including the amount of
the deductible, if any, for which the renter is obligated, (E) the
renter may purchase an optional damage waiver to cover all liability,
subject to whatever exceptions the rental company expressly lists
that are permitted under subdivision (f), and (F) the range of
charges for the damage waiver.
(2) In addition to the requirements of paragraph (1), a rental
company that offers or provides a damage waiver shall orally disclose
to all renters, except those who are participants in the rental
company's membership program, that the damage waiver may be
duplicative of coverage that the customer maintains under his or her
own policy of motor vehicle insurance. The renter's receipt of the
oral disclosure shall be demonstrated through the renter's
acknowledging receipt of the oral disclosure near that part of the
contract where the renter indicates, by the renter's own initials,
his or her acceptance or declination of the damage waiver. Adjacent
to that same part, the contract also shall state that the damage
waiver is optional. Further, the contract for these renters shall
include a clear and conspicuous written disclosure that the damage
waiver may be duplicative of coverage that the customer maintains
under his or her own policy of motor vehicle insurance.
(3) The following is an example, for purposes of illustration and
not limitation, of a notice fulfilling the requirements of paragraph
(1) for a rental company that imposes liability on the renter for
collision damage to the full value of the vehicle:
"NOTICE ABOUT YOUR FINANCIAL RESPONSIBILITY AND OPTIONAL DAMAGE
WAIVER
You are responsible for all collision damage to the rented vehicle
even if someone else caused it or the cause is unknown. You are
responsible for the cost of repair up to the value of the vehicle,
and towing, storage, and impound fees.
Your own insurance, or the issuer of the credit card you use to
pay for the car rental transaction, may cover all or part of your
financial responsibility for the rented vehicle. You should check
with your insurance company, or credit card issuer, to find out about
your coverage and the amount of the deductible, if any, for which
you may be liable.
Further, if you use a credit card that provides coverage for your
potential liability, you should check with the issuer to determine if
you must first exhaust the coverage limits of your own insurance
before the credit card coverage applies.
The rental company will not hold you responsible if you buy a
damage waiver. But a damage waiver will not protect you if (list
exceptions)."
(A) When the above notice is printed in the rental contract or
holder in which the contract is placed, the following shall be
printed immediately following the notice:
"The cost of an optional damage waiver is $____ for every (day or
week)."
(B) When the above notice appears on a sign, the following shall
appear immediately adjacent to the notice:
"The cost of an optional damage waiver is $____ to $____ for every
(day or week), depending upon the vehicle rented."
(h) Notwithstanding any other provision of law, a rental company
may sell a damage waiver subject to the following rate limitations
for each full or partial 24-hour rental day for the damage waiver.
(1) For rental vehicles that the rental company designates as an
"economy car," "subcompact car," "compact car," or another term
having similar meaning when offered for rental, or another vehicle
having a manufacturer's suggested retail price of nineteen thousand
dollars ($19,000) or less, the rate shall not exceed nine dollars
($9).
(2) For rental vehicles that have a manufacturer's suggested
retail price from nineteen thousand one dollars ($19,001) to
thirty-four thousand nine hundred ninety-nine dollars ($34,999),
inclusive, and that are also either vehicles of next year's model, or
not older than the previous year's model, the rate shall not exceed
fifteen dollars ($15). For those rental vehicles older than the
previous year's model-year, the rate shall not exceed nine dollars
($9).
(i) The manufacturer's suggested retail prices described in
subdivision (h) shall be adjusted annually to reflect changes from
the previous year in the Consumer Price Index. For the purposes of
this section, "Consumer Price Index" means the United States Consumer
Price Index for All Urban Consumers, for all items.
(j) A rental company that disseminates in this state an
advertisement containing a rental rate shall include in that
advertisement a clearly readable statement of the charge for a damage
waiver and a statement that a damage waiver is optional.
(k) (1) A rental company shall not require the purchase of a
damage waiver, optional insurance, or another optional good or
service.
(2) A rental company shall not engage in any unfair, deceptive, or
coercive conduct to induce a renter to purchase the damage waiver,
optional insurance, or another optional good or service, including
conduct such as, but not limited to, refusing to honor the renter's
reservation, limiting the availability of vehicles, requiring a
deposit, or debiting or blocking the renter's credit card account for
a sum equivalent to a deposit if the renter declines to purchase the
damage waiver, optional insurance, or another optional good or
service.
(l) (1) In the absence of express permission granted by the renter
subsequent to damage to, or loss of, the vehicle, a rental company
shall not seek to recover any portion of a claim arising out of
damage to, or loss of, the rented vehicle by processing a credit card
charge or causing a debit or block to be placed on the renter's
credit card account.
(2) A rental company shall not engage in any unfair, deceptive, or
coercive tactics in attempting to recover or in recovering on any
claim arising out of damage to, or loss of, the rented vehicle.
(m) (1) A customer facility charge may be collected by a rental
company under the following circumstances:
(A) Collection of the fee by the rental company is required by an
airport operated by a city, a county, a city and county, a joint
powers authority, a special district, or the San Diego County
Regional Airport Authority formed pursuant to Division 17 (commencing
with Section 170000) of the Public Utilities Code.
(B) The fee is calculated on a per contract basis or as provided
in paragraph (2).
(C) The fee is a user fee, not a tax imposed upon real property or
an incidence of property ownership under Article XIII D of the
California Constitution.
(D) Except as otherwise provided in subparagraph (E), the fee
shall be ten dollars ($10) per contract or the amount provided in
paragraph (2).
(E) The fee for a consolidated rental car facility shall be
collected only from customers of on-airport rental car companies. If
the fee imposed by the airport is for both a consolidated rental car
facility and a common-use transportation system, the fee collected
from customers of on-airport rental car companies shall be ten
dollars ($10) or the amount provided in paragraph (2), but the fee
imposed on customers of off-airport rental car companies who are
transported on the common-use transportation system is proportionate
to the costs of the common-use transportation system only. The fee is
uniformly applied to each class of on-airport or off-airport
customers, provided that the airport requires off-airport customers
to use the common-use transportation system. For purposes of this
subparagraph, "on-airport rental car company" means a rental company
operating under an airport property lease or an airport concession or
license agreement whose customers use or will use the consolidated
rental car facility and the collection of the fee as to those
customers is consistent with subparagraph (C).
(F) Revenues collected from the fee do not exceed the reasonable
costs of financing, designing, and constructing the facility and
financing, designing, constructing, and operating any common-use
transportation system, or acquiring vehicles for use in that system,
and shall not be used for any other purpose.
(G) The fee is separately identified on the rental agreement.
(H) This paragraph does not apply to fees which are governed by
Section 50474.1 of the Government Code or Section 57.5 of the San
Diego Unified Port District Act.
(I) For any airport seeking to require rental car companies to
collect an alternative customer facility charge pursuant to paragraph
(2), the following provisions apply:
(i) Notwithstanding Section 10231.5 of the Government Code, the
airport shall provide reports on an annual basis to the Senate and
Assembly Committees on Judiciary detailing all of the following:
(I) The total amount of the customer facility charge collected.
(II) How the funds are being spent.
(III) The amount of and reason for any changes in the airport's
budget or financial needs for the facility or common-use
transportation system.
(IV) Whether airport concession fees authorized by Section 1936.01
have increased since the prior report, if any.
(ii) The airport shall complete the independent audit required by
subparagraph (B) of paragraph (4) of subdivision (a) prior to initial
collection of the customer facility charge, prior to any increase
pursuant to paragraph (2), and every three years after initial
collection and any increase until such time as the fee authorization
becomes inoperative pursuant to subparagraph (C) of paragraph (4) of
subdivision (a).
(iii) Use of the bonds shall be limited to construction and design
of the consolidated rental car facility, terminal modifications, and
operating costs of the common-use transportation system, as
specified in paragraph (4) of subdivision (a).
(2) Any airport may require rental car companies to collect an
alternative customer facility charge under the following conditions:
(A) The airport first conducts a publicly noticed hearing pursuant
to the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950)
of Part 1 of Division 2 of Title 5 of the Government Code) to review
the costs of financing the design and construction of a consolidated
rental car facility and the design, construction, and operation of
any common-use transportation system in which all of the following
occur:
(i) The airport establishes the amount of revenue necessary to
finance the reasonable cost to design and construct a consolidated
rental car facility and to design, construct, and operate any
common-use transportation system, or acquire vehicles for use in that
system, based on evidence presented during the hearing.
(ii) The airport finds, based on evidence presented during the
hearing, that the fee authorized in paragraph (1) will not generate
sufficient revenue to finance the reasonable costs to design and
construct a consolidated rental car facility and to design,
construct, and operate any common-use transportation system, or
acquire vehicles for use in that system.
(iii) The airport finds that the reasonable cost of the project
requires the additional amount of revenue that would be generated by
the proposed daily rate, including any rate increase, authorized
pursuant to this paragraph.
(iv) The airport outlines each of the following:
(I) Steps it has taken to limit costs.
(II) Other potential alternatives for meeting its revenue needs
other than the collection of the fee.
(III) The extent to which rental car companies or other businesses
or individuals using the facility or common-use transportation
system will pay for the costs associated with these facilities and
systems other than the fee from rental customers.
(B) The airport may not require the fee authorized in this
paragraph to be collected at any time that the fee authorized in
paragraph (1) of this subdivision is being collected.
(C) Pursuant to the procedure set forth in this subdivision, the
fee may be collected at a rate charged on a per-day basis subject to
the following conditions:
(i) Commencing January 1, 2011, the amount of the fee may not
exceed six dollars ($6) per day.
(ii) Commencing January 1, 2014, the amount of the fee may not
exceed seven dollars and fifty cents ($7.50) per day.
(iii) Commencing January 1, 2017, and thereafter, the amount of
the fee may not exceed nine dollars ($9) per day.
(iv) At no time shall the fee authorized in this paragraph be
collected from any customer for more than five days for each
individual rental car contract.
(v) An airport subject to this paragraph shall initiate the
process for obtaining the authority to require or increase the
alternative fee no later than January 1, 2018. Any airport that
obtains the authority to require or increase an alternative fee shall
be authorized to continue collecting that fee until the fee
authorization becomes inoperative pursuant to subparagraph (C) of
paragraph (4) of subdivision (a).
(3) Notwithstanding any other provision of law, including, but not
limited to, Part 1 (commencing with Section 6001) to Part 1.7
(commencing with Section 7280), inclusive, of Division 2 of the
Revenue and Taxation Code, the fees collected pursuant to this
section, or another law whereby a local agency operating an airport
requires a rental car company to collect a facility financing fee
from its customers, are not subject to sales, use, or transaction
taxes.
(n) (1) A rental company shall only advertise, quote, and charge a
rental rate that includes the entire amount except taxes, a customer
facility charge, if any, and a mileage charge, if any, that a renter
must pay to hire or lease the vehicle for the period of time to
which the rental rate applies. A rental company shall not charge in
addition to the rental rate, taxes, a customer facility charge, if
any, and a mileage charge, if any, any fee that is required to be
paid by the renter as a condition of hiring or leasing
the vehicle, including, but not
limited to, required fuel or airport surcharges other than customer
facility charges, nor a fee for transporting the renter to the
location where the rented vehicle will be delivered to the renter.
(2) In addition to the rental rate, taxes, customer facility
charges, if any, and mileage charges, if any, a rental company may
charge for an item or service provided in connection with a
particular rental transaction if the renter could have avoided
incurring the charge by choosing not to obtain or utilize the
optional item or service. Items and services for which the rental
company may impose an additional charge include, but are not limited
to, optional insurance and accessories requested by the renter,
service charges incident to the renter's optional return of the
vehicle to a location other than the location where the vehicle was
hired or leased, and charges for refueling the vehicle at the
conclusion of the rental transaction in the event the renter did not
return the vehicle with as much fuel as was in the fuel tank at the
beginning of the rental. A rental company also may impose an
additional charge based on reasonable age criteria established by the
rental company.
(3) A rental company shall not charge a fee for authorized drivers
in addition to the rental charge for an individual renter.
(4) If a rental company states a rental rate in print
advertisement or in a telephonic, in-person, or computer-transmitted
quotation, the rental company shall disclose clearly in that
advertisement or quotation the terms of mileage conditions relating
to the advertised or quoted rental rate, including, but not limited
to, to the extent applicable, the amount of mileage and gas charges,
the number of miles for which no charges will be imposed, and a
description of geographic driving limitations within the United
States and Canada.
(5) (A) When a rental rate is stated in an advertisement,
quotation, or reservation in connection with a car rental at an
airport where a customer facility charge is imposed, the rental
company shall disclose clearly the existence and amount of the
customer facility charge. For purposes of this subparagraph,
advertisements include radio, television, other electronic media, and
print advertisements. For purposes of this subparagraph, quotations
and reservations include those that are telephonic, in-person, and
computer-transmitted. If the rate advertisement is intended to
include transactions at more than one airport imposing a customer
facility charge, a range of fees may be stated in the advertisement.
However, all rate advertisements that include car rentals at airport
destinations shall clearly and conspicuously include a toll-free
telephone number whereby a customer can be told the specific amount
of the customer facility charge to which the customer will be
obligated.
(B) If a person or entity other than a rental car company,
including a passenger carrier or a seller of travel services,
advertises or quotes a rate for a car rental at an airport where a
customer facility charge is imposed, that person or entity shall,
provided that he, she, or it is provided with information about the
existence and amount of the fee, to the extent not specifically
prohibited by federal law, clearly disclose the existence and amount
of the fee in any telephonic, in-person, or computer-transmitted
quotation at the time of making an initial quotation of a rental rate
and at the time of making a reservation of a rental car. If a rental
car company provides the person or entity with rate and customer
facility charge information, the rental car company is not
responsible for the failure of that person or entity to comply with
this subparagraph when quoting or confirming a rate to a third person
or entity.
(6) If a rental company delivers a vehicle to a renter at a
location other than the location where the rental company normally
carries on its business, the rental company shall not charge the
renter an amount for the rental for the period before the delivery of
the vehicle. If a rental company picks up a rented vehicle from a
renter at a location other than the location where the rental company
normally carries on its business, the rental company shall not
charge the renter an amount for the rental for the period after the
renter notifies the rental company to pick up the vehicle.
(o) A rental company shall not use, access, or obtain any
information relating to the renter's use of the rental vehicle that
was obtained using electronic surveillance technology, except in the
following circumstances:
(1) (A) When the equipment is used by the rental company only for
the purpose of locating a stolen, abandoned, or missing rental
vehicle after one of the following:
(i) The renter or law enforcement has informed the rental company
that the vehicle is missing or has been stolen or abandoned.
(ii) The rental vehicle has not been returned following one week
after the contracted return date, or by one week following the end of
an extension of that return date.
(iii) The rental company discovers the rental vehicle has been
stolen or abandoned, and, if stolen, it shall report the vehicle
stolen to law enforcement by filing a stolen vehicle report, unless
law enforcement has already informed the rental company that the
vehicle is missing or has been stolen or abandoned.
(B) If electronic surveillance technology is activated pursuant to
subparagraph (A), a rental company shall maintain a record, in
either electronic or written form, of information relevant to the
activation of that technology. That information shall include the
rental agreement, including the return date, and the date and time
the electronic surveillance technology was activated. The record
shall also include, if relevant, a record of written or other
communication with the renter, including communications regarding
extensions of the rental, police reports, or other written
communication with law enforcement officials. The record shall be
maintained for a period of at least 12 months from the time the
record is created and shall be made available upon the renter's
request. The rental company shall maintain and furnish explanatory
codes necessary to read the record. A rental company shall not be
required to maintain a record if electronic surveillance technology
is activated to recover a rental vehicle that is stolen or missing at
a time other than during a rental period.
(2) In response to a specific request from law enforcement
pursuant to a subpoena or search warrant.
(3) This subdivision does not prohibit a rental company from
equipping rental vehicles with GPS-based technology that provides
navigation assistance to the occupants of the rental vehicle, if the
rental company does not use, access, or obtain information relating
to the renter's use of the rental vehicle that was obtained using
that technology, except for the purposes of discovering or repairing
a defect in the technology and the information may then be used only
for that purpose.
(4) This subdivision does not prohibit a rental company from
equipping rental vehicles with electronic surveillance technology
that allows for the remote locking or unlocking of the vehicle at the
request of the renter, if the rental company does not use, access,
or obtain information relating to the renter's use of the rental
vehicle that was obtained using that technology, except as necessary
to lock or unlock the vehicle.
(5) This subdivision does not prohibit a rental company from
equipping rental vehicles with electronic surveillance technology
that allows the company to provide roadside assistance, such as
towing, flat tire, or fuel services, at the request of the renter, if
the rental company does not use, access, or obtain information
relating to the renter's use of the rental vehicle that was obtained
using that technology except as necessary to provide the requested
roadside assistance.
(6) This subdivision does not prohibit a rental company from
obtaining, accessing, or using information from electronic
surveillance technology for the sole purpose of determining the date
and time the vehicle is returned to the rental company, and the total
mileage driven and the vehicle fuel level of the returned vehicle.
This paragraph, however, shall apply only after the renter has
returned the vehicle to the rental company, and the information shall
only be used for the purpose described in this paragraph.
(p) A rental company shall not use electronic surveillance
technology to track a renter in order to impose fines or surcharges
relating to the renter's use of the rental vehicle.
(q) A renter may bring an action against a rental company for the
recovery of damages and appropriate equitable relief for a violation
of this section. The prevailing party shall be entitled to recover
reasonable attorney's fees and costs.
(r) A rental company that brings an action against a renter for
loss due to theft of the vehicle shall bring the action in the county
in which the renter resides or, if the renter is not a resident of
this state, in the jurisdiction in which the renter resides.
(s) A waiver of any of the provisions of this section shall be
void and unenforceable as contrary to public policy.
(t) (1) A rental company's disclosure requirements shall be
satisfied for renters who are enrolled in the rental company's
membership program if all of the following conditions are met:
(A) Prior to the enrollee's first rental as a participant in the
program, the renter receives, in writing, the following:
(i) All of the disclosures required by paragraph (1) of
subdivision (g), including the terms and conditions of the rental
agreement then in effect.
(ii) An Internet Web site address, as well as a contact number or
address, where the enrollee can learn of changes to the rental
agreement or to the laws of this state governing rental agreements
since the effective date of the rental company's most recent
restatement of the rental agreement and distribution of that
restatement to its members.
(B) At the commencement of each rental period, the renter is
provided, on the rental record or the folder in which it is inserted,
with a printed notice stating that he or she had either previously
selected or declined an optional damage waiver and that the renter
has the right to change preferences.
(C) At the commencement of each rental period, the rental company
provides, on the rearview mirror, a hanger on which a statement is
printed, in a box, in at least 12-point boldface type, notifying the
renter that the collision damage waiver offered by the rental company
may be duplicative of coverage that the customer maintains under his
or her own policy of motor vehicle insurance. If it is not feasible
to hang the statement from the rearview mirror, it shall be hung from
the steering wheel.
The hanger shall provide the renter a box to initial if he or she
(not his or her employer) has previously accepted or declined the
collision damage waiver and that he or she now wishes to change his
or her decision to accept or decline the collision damage waiver, as
follows:
"/-/ If I previously accepted the collision damage waiver, I now
decline it.
/-/ If I previously declined the collision damage waiver, I now
accept it."
The hanger shall also provide a box for the enrollee to indicate
whether this change applies to this rental transaction only or to all
future rental transactions. The hanger shall also notify the renter
that he or she may make that change, prior to leaving the lot, by
returning the form to an employee designated to receive the form who
is present at the lot where the renter takes possession of the car,
to receive any change in the rental agreement from the renter.
(2) (A) This subdivision is not effective unless the employee
designated pursuant to subparagraph (E) of paragraph (8) of
subdivision (a) is actually present at the required location.
(B) This subdivision does not relieve the rental company from the
disclosures required to be made within the text of a contract or
holder in which the contract is placed; in or on an advertisement
containing a rental rate; or in a telephonic, in-person, or
computer-transmitted quotation or reservation.
(u) The amendments made to this section during the 2001-02 Regular
Session of the Legislature do not affect litigation pending on or
before January 1, 2003, alleging a violation of Section 22325 of the
Business and Professions Code as it read at the time the action was
commenced.
(v) This section shall become operative on January 1, 2015.
SEC. 4. Section 5924 of the Government Code, as amended by Section
1 of Chapter 646 of the Statutes of 2009, is amended to read:
5924. (a) (1) Notwithstanding Section 13340, there is hereby
continuously appropriated without regard to fiscal years, from the
General Fund in the State Treasury for the purpose of this chapter,
an amount that will equal the sum annually as will be necessary to
pay all obligations, including principal, interest, fees, costs,
indemnities, and all other amounts incurred by the state under or in
connection with any credit enhancement or liquidity agreement, as
specified in paragraph (2), that is entered into by the state
pursuant to this chapter for bonds payable pursuant to an
appropriation from the General Fund.
(2) A credit enhancement or liquidity agreement subject to this
section includes a credit enhancement or liquidity agreement that is
in the form of a letter of credit, standby purchase agreement,
reimbursement agreement, liquidity facility, or other similar
arrangement.
(b) (1) If the agent for sale determines that the credit
enhancement or liquidity agreement is expected to result in a lower
cost of the borrowing for the bonds to which the credit enhancement
or liquidity agreement pertains, the state may incur fees, costs, and
other similar expenses under or in connection with any credit
enhancement or liquidity agreement entered into by the state pursuant
to this chapter.
(2) The amount appropriated pursuant to subdivision (a) for fees,
costs, and other similar expenses incurred in connection with any
credit enhancement or liquidity agreement, when expressed as a
percentage of the original principal amount of the bonds to which the
credit enhancement or liquidity agreement pertains, may not exceed 3
percent.
(3) The amount appropriated pursuant to subdivision (a) for
interest incurred in connection with any credit enhancement or
liquidity agreement, when expressed as a percentage of the
outstanding principal amount of the bonds to which the credit
enhancement or liquidity agreement pertains, may not exceed the
interest rate percentage set forth in subdivision (d) of Section
16731.
SEC. 5. Section 5924 of the Government Code, as added by Section 2
of Chapter 633 of the Statutes of 2009, is repealed.
SEC. 6. Section 5924 of the Government Code, as added by Section 2
of Chapter 646 of the Statutes of 2009, is repealed.
SEC. 7. Section 8169.7 is added to the Government Code, to read:
8169.7. (a) The department may sell all or a portion of the
following properties located in the County of Sacramento, City of
Sacramento, State of California, and leased by the department to the
Capitol Area Development Authority:
(1) Parcel 1. Approximately 0.14 acres of land, not including
improvements thereon, located at 1510 14th Street, and identified by
Sacramento County Assessor Parcel Number 006-0224-026.
(2) Parcel 2. Approximately 0.22 acres of land, not including
improvements thereon, located at 1530 N Street and 1412 16th Street,
and identified by Sacramento County Assessor Parcel Numbers
006-0231-008 and 006-0231-009.
(3) Parcel 3. Approximately 0.15 acres of land, not including
improvements thereon, located at 1416 17th Street and 1631 O Street,
and identified by Sacramento County Assessor Parcel Numbers
006-0233-012 and 006-0233-013.
(4) Parcel 4. Approximately 0.59 acres of land, not including
improvements thereon, located at 1609 O Street, and identified by
Sacramento County Assessor Parcel Number 006-0233-026.
(5) Parcel 5. Approximately 0.07 acres of land, not including
improvements thereon, located at 1612 14th Street, and identified by
Sacramento County Assessor Parcel Number 006-0284-011.
(6) Parcel 6. Approximately 0.30 acres of land, not including
improvements thereon, located at 1616, 1622, and 1626 14th Street and
1325 and 1331 Q Street, and identified by Sacramento County Assessor
Parcel Numbers 006-0284-012, 006-0284-013, 006-0284-014,
006-0284-015, and 006-0284-016.
(b) The properties shall be sold for market value, or upon terms
and conditions as the director, with concurrence of the Department of
Finance, determines are in the best interest of the state.
(c) The department may offer the property for sale pursuant to a
public bidding process designed to obtain the highest return for the
state. Any transaction based on such a bidding process shall be
deemed to be the market value. The director, at the director's sole
discretion, may reject all bids received if it is in the best
interest of the state to do so.
(d) The department shall be reimbursed for any cost or expense
incurred in the disposition of any parcels from the sale proceeds.
(e) The Director of Finance may provide a loan from the General
Fund in the amount of not more than two hundred thousand dollars
($200,000) to augment Item 1760-001-0002 of Section 2.00 of the
Budget Act of 2012 and may adjust the amounts appropriated in Item
1760-001-0002 of Section 2.00 of the Budget Act of 2012, for the
purposes of supporting the management of the state's real property
footprint reduction to accommodate any increase in workload or other
costs to the department in implementing this section.
(f) The disposition of the properties shall be made on an "as is"
basis, and any sale shall be exempt from Chapter 3 (commencing with
Section 21100) to Chapter 6 (commencing with Section 21165),
inclusive, of Division 13 of the Public Resources Code.
(g) As to any property sold pursuant to this section, the director
shall except and reserve to the state all mineral deposits possessed
by the state, as defined in Section 6407 of the Public Resources
Code, below a depth of 500 feet, without surface rights of entry. The
rights to prospect for, mine, and remove the deposits shall be
limited to those areas of the property conveyed that the director,
after consultation with the State Lands Commission, determines to be
reasonably necessary for the removal of the deposits.
(h) The disposition of the properties pursuant to this section
shall not constitute a sale or other disposition of surplus state
property pursuant to Section 11011.
(i) The net proceeds of any moneys received from the disposition
of any parcels described in this section shall be deposited in the
General Fund or the Deficit Recovery Fund as determined by the
Department of Finance.
SEC. 8. Section 8879.58 of the Government Code is amended to read:
8879.58. (a) (1) No later than September 1 of the first fiscal
year in which the Legislature appropriates funds from the Transit
System Safety, Security, and Disaster Response Account, and no later
than September 1 of each fiscal year thereafter in which funds are
appropriated from that account, the Controller shall develop and make
public a list of eligible agencies and transit operators and the
amount of funds each is eligible to receive from the account pursuant
to subdivision (a) of Section 8879.57. It is the intent of the
Legislature that funds allocated to specified recipients pursuant to
this section provide each recipient with the same proportional share
of funds as the proportional share each received from the allocation
of State Transit Assistance funds, pursuant to Sections 99313 and
99314 of the Public Utilities Code, over fiscal years 2004-05,
2005-06, and 2006-07.
(2) In establishing the amount of funding each eligible recipient
is to receive under subdivision (a) of Section 8879.57 from
appropriated funds to be allocated based on Section 99313 of the
Public Utilities Code, the Controller shall make the following
computations:
(A) For each eligible recipient, compute the amounts of State
Transit Assistance funds allocated to that recipient pursuant to
Section 99313 of the Public Utilities Code during the 2004-05,
2005-06, and 2006-07 fiscal years.
(B) Compute the total statewide allocation of State Transit
Assistance funds pursuant to Section 99313 of the Public Utilities
Code during the 2004-05, 2005-06, and 2006-07 fiscal years.
(C) Divide subparagraph (A) by subparagraph (B).
(D) For each eligible recipient, multiply the allocation factor
computed pursuant to subparagraph (C) by 50 percent of the amount
available for allocation pursuant to subdivision (a) of Section
8879.57.
(3) In establishing the amount of funding each eligible recipient
is eligible to receive under subdivision (a) of Section 8879.57 from
funds to be allocated based on Section 99314 of the Public Utilities
Code, the Controller shall make the following computations:
(A) For each eligible recipient, compute the amounts of State
Transit Assistance funds allocated to that recipient pursuant to
Section 99314 of the Public Utilities Code during the 2004-05,
2005-06, and 2006-07 fiscal years.
(B) Compute the total statewide allocation of State Transit
Assistance funds pursuant to Section 99314 of the Public Utilities
Code during the 2004-05, 2005-06, and 2006-07 fiscal years.
(C) Divide subparagraph (A) by subparagraph (B).
(D) For each eligible recipient, multiply the allocation factor
computed pursuant to subparagraph (C) by 50 percent of the amount
available for allocation pursuant to subdivision (a) of Section
8879.57.
(4) The Controller shall notify eligible recipients of the amount
of funding each is eligible to receive pursuant to subdivision (a) of
Section 8879.57 for the duration of time that these funds are made
available for these purposes based on the computations pursuant to
subparagraph (D) of paragraph (2) and subparagraph (D) of paragraph
(3).
(b) Prior to seeking a disbursement of funds for an eligible
project, an agency or transit operator on the public list described
in paragraph (1) of subdivision (a) shall submit to the California
Emergency Management Agency a description of the project it proposes
to fund with its share of funds from the account. The description
shall include all of the following:
(1) A summary of the proposed project that describes the safety,
security, or emergency response benefit that the project intends to
achieve.
(2) That the useful life of the project shall not be less than the
required useful life for capital assets specified in subdivision (a)
of Section 16727.
(3) The estimated schedule for the completion of the project.
(4) The total cost of the proposed project, including
identification of all funding sources necessary for the project to be
completed.
(c) After receiving the information required to be submitted under
subdivision (b), the agency shall review the information to
determine all of the following:
(1) The project is consistent with the purposes described in
subdivision (h) of Section 8879.23.
(2) The project is an eligible capital expenditure, as described
in subdivision (a) of Section 8879.57.
(3) The project is a capital improvement that meets the
requirements of paragraph (2) of subdivision (b).
(4) The project, or a useful component thereof, is, or will
become, fully funded with an allocation of funds from the Transit
System Safety, Security, and Disaster Response Account.
(d) (1) Upon conducting the review required in subdivision (c) and
determining that a proposed project meets the requirements of that
subdivision, the agency shall, on a quarterly basis, provide the
Controller with a list of projects and the sponsoring agencies or
transit operators eligible to receive an allocation from the account.
(2) The list of projects submitted to the Controller for
allocation for any one fiscal year shall be constrained by the total
amount of funds appropriated by the Legislature for the purposes of
this section for that fiscal year.
(3) For a fiscal year in which the number of projects submitted
for funding under this section exceeds available funds, the agency
shall prioritize projects contained on the lists submitted pursuant
to paragraph (1) so that (A) projects addressing the greatest risks
to the public and that demonstrate the ability and intent to expend a
significant percentage of project funds within six months have the
highest priority and (B) to the maximum extent possible, the list
reflects a distribution of funding that is geographically balanced.
(e) Upon receipt of the information from the agency required by
subdivision (d), the Controller's office shall commence any necessary
actions to allocate funds to eligible agencies and transit operators
sponsoring projects on the list of projects, including, but not
limited to, seeking the issuance of bonds for that purpose. The total
allocations to any one eligible agency or transit operator shall not
exceed that agency's or transit operator's share of funds from the
account pursuant to the formula contained in subdivision (a) of
Section 8879.57.
(f) During each fiscal year that an agency or transit operator
receives funds pursuant to this section, the California Emergency
Management Agency may monitor the project expenditures to ensure
compliance with this section.
(g) The Controller's office may, pursuant to Section 12410, use
its authority to audit the use of state bond funds on projects
receiving an allocation under this section. Each eligible agency or
transit operator sponsoring a project subject to an audit shall
provide any and all data requested by the Controller's office in
order to complete the audit. The Controller's office shall transmit
copies of all completed audits to the agency and to the policy
committees of the Legislature with jurisdiction over transportation
and budget issues.
SEC. 9. Section 8879.59 of the Government Code is amended to read:
8879.59. (a) For funds appropriated from the Transit System
Safety, Security, and Disaster Response Account for allocation to
transit agencies eligible to receive funds pursuant to subdivision
(b) of Section 8879.57, the California Emergency Management Agency
(Cal EMA) shall administer a grant application and award program for
those transit agencies.
(b) Funds awarded to transit agencies pursuant to this section
shall be for eligible capital expenditures as described in
subdivision (b) of Section 8879.57.
(c) Prior to allocating
funds to projects pursuant to this section, Cal EMA shall adopt
guidelines to establish the criteria and process for the distribution
of funds described in this section. Prior to adopting the
guidelines, Cal EMA shall hold a public hearing on the proposed
guidelines.
(d) For each fiscal year in which funds are appropriated for the
purposes of this section, Cal EMA shall issue a notice of funding
availability no later than October 1.
(e) No later than December 1 of each fiscal year in which the
notice in subdivision (d) is issued, eligible transit agencies may
submit project nominations for funding to Cal EMA for its review and
consideration. Project nominations shall include all of the
following:
(1) A description of the project, which shall illustrate the
physical components of the project and the security or emergency
response benefit to be achieved by the completion of the project.
(2) Identification of all nonbond sources of funding committed to
the project.
(3) An estimate of the project's full cost and the proposed
schedule for the project's completion.
(f) For a fiscal year in which the number of projects submitted
for funding under this section exceeds available funds, Cal EMA shall
prioritize projects so that projects addressing the greatest risks
to the public and that demonstrate the ability and intent to expend a
significant percentage of project funds within six months have the
highest priority.
(g) No later than February 1, Cal EMA shall select eligible
projects to receive grants under this section and shall provide the
Controller with a list of the projects and the sponsoring agencies
eligible to receive an allocation from the account. Upon receipt of
this information, the Controller's office shall commence any
necessary actions to allocate funds to those agencies, including, but
not limited to, seeking the issuance of bonds for that purpose.
Grants awarded to eligible transit agencies pursuant to subdivision
(b) of Section 8879.57 shall be for eligible capital expenditures, as
described in paragraph (2) of subdivision (b) of that section.
(h) During each fiscal year that a transit agency receives funds
pursuant to this section, Cal EMA may monitor the project
expenditures to ensure project funds are expended in compliance with
the submitted project nomination.
SEC. 10. Section 11270 of the Government Code is amended to read:
11270. As used in this article, "administrative costs" means the
amounts expended by the Legislature, the Legislative Counsel Bureau,
the Governor's Office, the California Technology Agency, the Office
of Planning and Research, the Department of Justice, the State
Controller's Office, the State Treasurer's Office, the State
Personnel Board, the Department of Finance, the Financial Information
System for California, the Office of Administrative Law, the
Department of Human Resources, the Secretary of State and Consumer
Services, the Secretary of California Health and Human Services, the
Bureau of State Audits, and the California State Library, and a
proration of any other cost to or expense of the state for services
or facilities provided for the Legislature and the above agencies,
for supervision or administration of the state government or for
services to other state agencies.
SEC. 11. Section 11546 of the Government Code is amended to read:
11546. (a) The California Technology Agency shall be responsible
for the approval and oversight of information technology projects,
which shall include, but are not limited to, all of the following:
(1) Establishing and maintaining a framework of policies,
procedures, and requirements for the initiation, approval,
implementation, management, oversight, and continuation of
information technology projects. Unless otherwise required by law, a
state department shall not procure oversight services of information
technology projects without the approval of the California Technology
Agency.
(2) Evaluating information technology projects based on the
business case justification, resources requirements, proposed
technical solution, project management, oversight and risk mitigation
approach, and compliance with statewide strategies, policies, and
procedures. Projects shall continue to be funded through the
established Budget Act process.
(3) Consulting with agencies during initial project planning to
ensure that project proposals are based on well-defined programmatic
needs, clearly identify programmatic benefits, and consider feasible
alternatives to address the identified needs and benefits consistent
with statewide strategies, policies, and procedures.
(4) Consulting with agencies prior to project initiation to review
the project governance and management framework to ensure that it is
best designed for success and will serve as a resource for agencies
throughout the project implementation.
(5) Requiring agencies to provide information on information
technology projects including, but not limited to, all of the
following:
(A) The degree to which the project is within approved scope,
cost, and schedule.
(B) Project issues, risks, and corresponding mitigation efforts.
(C) The current estimated schedule and costs for project
completion.
(6) Requiring agencies to perform remedial measures to achieve
compliance with approved project objectives. These remedial measures
may include, but are not limited to, any of the following:
(A) Independent assessments of project activities, the cost of
which shall be funded by the agency administering the project.
(B) Establishing remediation plans.
(C) Securing appropriate expertise, the cost of which shall be
funded by the agency administering the project.
(D) Requiring additional project reporting.
(E) Requiring approval to initiate any action identified in the
approved project schedule.
(7) Suspending, reinstating, or terminating information technology
projects. The agency shall notify the Joint Legislative Budget
Committee of any project suspension, reinstatement, and termination
within 30 days of that suspension, reinstatement, or termination.
(8) Establishing restrictions or other controls to mitigate
nonperformance by agencies, including, but not limited to, any of the
following:
(A) The restriction of future project approvals pending
demonstration of successful correction of the identified performance
failure.
(B) The revocation or reduction of authority for state agencies to
initiate information technology projects or acquire information
technology or telecommunications goods or services.
(b) The California Technology Agency shall have the authority to
delegate to another agency any authority granted under this section
based on its assessment of the agency's project management, project
oversight, and project performance.
SEC. 12. Section 12531 is added to the Government Code, to read:
12531. (a) The Legislature finds and declares that California,
represented by the California Attorney General, entered a national
multistate settlement with the country's five largest loan servicers.
This agreement, the National Mortgage Settlement stemmed from
successful resolution of federal court action (Consent Judgment,
United States v. Bank of America (No. 1:12-cv-00361, Banzr. D.C. Apr.
4, 2012). The National Mortgage Settlement is broad ranging, with
California's share of this settlement estimated to be up to eighteen
billion dollars ($18,000,000,000). Of this amount, approximately four
hundred ten million dollars ($410,000,000) will come directly to the
state in costs, fees, and penalty payments.
(b) There is hereby created in the State Treasury the National
Mortgage Special Deposit Fund. Notwithstanding Section 13340, all
moneys in the fund are hereby continuously appropriated, and shall be
allocated by the Department of Finance.
(c) Direct payments made to the State of California as civil
penalties pursuant to the National Mortgage Settlement shall be
deposited in the Unfair Competition Law Fund as required by the
settlement.
(d) Direct payments made to the State of California pursuant to
the National Mortgage Settlement, except for those payments made
pursuant to subdivision (c), shall be deposited in the National
Mortgage Special Deposit Fund.
(e) Notwithstanding any other law, the Director of Finance may
allocate or otherwise use the funds in the National Mortgage Special
Deposit Fund to offset General Fund expenditures in the 2011-12,
2012-13, and 2013-14 fiscal years. The Department of Finance and the
Controller's office shall recognize this fiscal alignment accordingly
for the purpose of the state budget process and legal basis of
accounting.
(f) Not less than 30 days prior to allocating any moneys pursuant
to subdivision (e), the Department of Finance shall submit an
expenditure plan to the Joint Legislative Budget Committee detailing
the proposed use of the moneys in the National Mortgage Special
Deposit Fund.
(g) Notwithstanding any other law, the Controller may use the
funds in the National Mortgage Special Deposit Fund for cashflow
loans to the General Fund as provided in Sections 16310 and 16381.
SEC. 13. Section 13071 of the Government Code is amended to read:
13071. The Director of Finance shall be responsible for
coordinating state agency internal audits and identifying when
agencies are required to comply with federally mandated audits. The
Director of Finance, in coordinating the internal auditors of state
agencies, shall ensure that these auditors utilize the "Standards for
the Professional Practices of Internal Auditing."
SEC. 14. Section 13300.5 is added to the Government Code, to read:
13300.5. (a) The Legislature finds and declares that the project
of the FISCal Project to modernize the state's internal financial
systems is a critical project that must be subject to the highest
level of oversight. According to the California Technology Agency,
the size and scope of this modernization and automation effort make
this project one of the highest risk projects undertaken by the
state. Therefore, the Legislature must take steps to ensure it is
fully informed as the project is implemented. It is the intent of the
Legislature to adopt additional reporting requirements for the
FISCal Project Office to adequately manage the project's risk and to
ensure the successful implementation of this effort.
(b) The FISCal Project Office shall report to the Legislature, by
February 15 of each year, an update on the project. The report shall
include all of the following:
(1) An executive summary and overview of the project's status.
(2) An overview of the project's history.
(3) Significant events of the project within the current reporting
period and a projection of events during the next reporting period.
(4) A discussion of mitigation actions being taken by the project
for any missed major milestones.
(5) A comparison of actual to budgeted expenditures, and an
explanation of variances and any planned corrective actions,
including a summary of FISCal project and staffing levels and an
estimate of staff participation from partner agencies.
(6) An articulation of expected functionality and qualitative
benefits from the project that were achieved during the reporting
period and that are expected to be achieved in the subsequent year.
(7) An overview of change management activities and stakeholder
engagement in the project, including a summary of departmental
participation in the FISCal project.
(8) A discussion of lessons learned and best practices that will
be incorporated into future changes in management activities.
(9) A description of any significant software customization,
including a justification for why, if any, customization was granted.
(10) Updates on the progress of meeting the project objectives,
including the objectives provided in paragraph (1) of subdivision (c)
of Section 15849.22.
(c) The initial report, due February 15, 2013, shall provide a
description of the approved project scope. Later reports shall
describe any later deviations to the project scope, cost, or
schedule.
(d) The initial report shall also provide a summary of the project
history from Special Project Report 1 to Special Project Report 4,
inclusive.
(e) This section shall remain in effect until a postimplementation
evaluation report has been approved by the California Technology
Agency. The California Technology Agency shall post a notice on its
Internet Web site when the report is approved.
SEC. 15. Section 15849.6 of the Government Code, as added by
Section 13 of Chapter 726 of the Statutes of 2010, is repealed.
SEC. 16. Section 15849.6 of the Government Code, as added by
Section 2 of Chapter 727 of the Statutes of 2010, is amended to read:
15849.6. Notwithstanding any provision of this part to the
contrary, the board may issue bonds, notes, or other obligations to
finance the acquisition, design, or construction of a public building
as authorized by the Legislature, in the total amount authorized by
the Legislature, and any additional amount authorized by the board to
pay the cost of financing. This additional amount may include
interest during acquisition or interest prior to, during, and for a
period of six months after construction of the public building,
interest payable on any interim loan or interim financing for the
public building, a reasonably required reserve fund, and the costs of
issuance of any interim financing and permanent financing.
This section shall be applicable to, but not limited to, bonds,
notes, or obligations of the board that were authorized by
appropriations of the Legislature made prior to the effective date of
this section.
SEC. 17. Section 15849.65 is added to the Government Code, to
read:
15849.65. (a) Notwithstanding any provision of this part to the
contrary, when a public building for the University of California is
authorized, in full or in part, to be financed under this part, the
board may issue bonds, notes, or other obligations to reimburse any
debt service related to obligations issued or entered into by the
Regents of the University of California as interim financing for the
public building. In addition to the amount authorized by the
Legislature for a public building for the University of California,
the board may authorize an additional amount to pay related interest
and issuance costs associated with the obligations issued or entered
into by the Regents of the University of California.
(b) This section shall be applicable to, but not limited to,
bonds, notes, or obligations of the board that were authorized by
appropriations of the Legislature made prior to the effective date of
this section.
(c) This section shall become inoperative on July 1, 2017, and, as
of January 1, 2018, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2018, deletes or
extends the dates on which it becomes inoperative and is repealed.
SEC. 18. Section 17581 of the Government Code is amended to read:
17581. (a) No local agency shall be required to implement or give
effect to any statute or executive order, or portion thereof, during
any fiscal year and for the period immediately following that fiscal
year for which the Budget Act has not been enacted for the
subsequent fiscal year if all of the following apply:
(1) The statute or executive order, or portion thereof, has been
determined by the Legislature, the commission, or any court to
mandate a new program or higher level of service requiring
reimbursement of local agencies pursuant to Section 6 of Article XIII
B of the California Constitution.
(2) The statute or executive order, or portion thereof, or the
commission's test claim number, has been specifically identified by
the Legislature in the Budget Act for the fiscal year as being one
for which reimbursement is not provided for that fiscal year. For
purposes of this paragraph, a mandate shall be considered to have
been specifically identified by the Legislature only if it has been
included within the schedule of reimbursable mandates shown in the
Budget Act and it is specifically identified in the language of a
provision of the item providing the appropriation for mandate
reimbursements.
(b) Within 30 days after enactment of the Budget Act, the
Department of Finance shall notify local agencies of any statute or
executive order, or portion thereof, for which operation of the
mandate is suspended because reimbursement is not provided for that
fiscal year pursuant to this section and Section 6 of Article XIII B
of the California Constitution.
(c) Notwithstanding any other provision of law, if a local agency
elects to implement or give effect to a statute or executive order
described in subdivision (a), the local agency may assess fees to
persons or entities which benefit from the statute or executive
order. Any fee assessed pursuant to this subdivision shall not exceed
the costs reasonably borne by the local agency.
(d) This section shall not apply to any state-mandated local
program for the trial courts, as specified in Section 77203.
(e) This section shall not apply to any state-mandated local
program for which the reimbursement funding counts toward the minimum
General Fund requirements of Section 8 of Article XVI of the
Constitution.
(f) All state-mandated local programs suspended in the Budget Act
for the 2012-13 fiscal year shall also be suspended in the 2013-14
and 2014-15 fiscal years.
SEC. 19. Section 17617 of the Government Code is amended to read:
17617. The total amount due to each city, county, city and
county, and special district, for which the state has determined that
reimbursement is required under paragraph (2) of subdivision (b) of
Section 6 of Article XIII B of the California Constitution, shall be
appropriated for payment to these entities over a period of not more
than 15 years, commencing with the Budget Act for the 2006-07 fiscal
year and concluding with the Budget Act for the 2020-21 fiscal year.
There shall be no appropriation for payment of reimbursement claims
submitted pursuant to this section for the 2012-13, 2013-14, and
2014-15 fiscal years.
SEC. 20. Section 19849 of the Government Code is amended to read:
19849. (a) The department shall adopt rules governing hours of
work and overtime compensation and the keeping of records related
thereto, including time and attendance records. Each appointing power
shall administer and enforce such rules.
(b) Notwithstanding any other law, the department shall adopt a
plan for the period from July 1, 2012, to June 30, 2013, inclusive,
by which all state employees not subject to the Personal Leave
Program 2012 (PLP 2012 Program), as described in subdivision (c) of
Section 19851, shall be furloughed for one workday per calendar
month. The department shall further adopt rules for the
implementation, administration, and enforcement of this furlough
plan. This subdivision shall not apply to retired annuitants or to
employees of entities listed in Section 3.90 of the Budget Act of
2012.
(c) Except as provided in subdivision (b), if the provisions of
this section are in conflict with the provisions of a memorandum of
understanding reached pursuant to Section 3517.5, the memorandum of
understanding shall be controlling without further legislative
action, except that if such provisions of a memorandum of
understanding require the expenditure of funds, the provisions shall
not become effective unless approved by the Legislature in the annual
Budget Act.
SEC. 21. Section 19851 of the Government Code is amended to read:
19851. (a) It is the policy of the state, except during the
operation of subdivision (c), that the workweek of the state employee
shall be 40 hours, and the workday of state employees eight hours,
except that workweeks and workdays of a different number of hours may
be established in order to meet the varying needs of the different
state agencies. It is the policy of the state to avoid the necessity
for overtime work whenever possible. This policy does not restrict
the extension of regular working-hour schedules on an overtime basis
in those activities and agencies where it is necessary to carry on
the state business properly during a manpower shortage.
(b) If the provisions of this section are in conflict with the
provisions of a memorandum of understanding reached pursuant to
Section 3517.5, the memorandum of understanding shall be controlling
without further legislative action, except that if the provisions of
a memorandum of understanding require the expenditure of funds, the
provisions shall not become effective unless approved by the
Legislature in the annual Budget Act.
(c) Notwithstanding any other law, for the period from July 1,
2012, to June 30, 2013, inclusive, a state employee shall participate
in the Personal Leave Program 2012 (PLP 2012 Program), either as
required by an applicable memorandum of understanding reached
pursuant to Section 3517.5 or by the direction of the department for
excluded employees. Under the PLP 2012 Program, each employee shall
receive a reduction in pay not greater than 5 percent. In exchange
for this reduction in pay, each employee shall receive eight hours of
PLP 2012 Program leave credits on the first day of each monthly pay
period. This subdivision shall not apply to retired annuitants or to
employees of entities listed in Section 3.90 of the Budget Act of
2012.
SEC. 22. Section 50087 of the Government Code is repealed.
SEC. 23. Section 51298 of the Government Code is amended to read:
51298. It is the intent of the Legislature in enacting this
chapter to provide local governments with opportunities to attract
either large manufacturing or research and development facilities to
invest in their communities and to encourage industries, such as high
technology, aerospace, automotive, biotechnology, software,
environmental sources, and others, to locate and invest in those
facilities in California.
(a) Commencing in the 1998-99 fiscal year, the governing body of a
county, city and county, or city, may, by means of an ordinance or
resolution approved by a majority of its entire membership, elect to
establish a capital investment incentive program. In any county, city
and county, or city in which the governing body has so elected, the
county, city and county, or city shall, upon the approval by a
majority of the entire membership of its governing body of a written
request therefor, pay a capital investment incentive amount to the
proponent of a qualified manufacturing facility or a qualified
research and development facility for up to 15 consecutive fiscal
years. A request for the payment of capital investment incentive
amounts shall be filed by a proponent in writing with the governing
body of an electing county, city and county, or city in the time and
manner specified in procedures adopted by that governing body. In the
case in which the governing body of an electing county, city and
county, or city approves a request for the payment of capital
investment incentive amounts, both of the following conditions shall
apply:
(1) The consecutive fiscal years during which a capital investment
incentive amount is to be paid shall commence with the first fiscal
year commencing after the date upon which the qualified manufacturing
facility or the qualified research and development facility is
certified for occupancy or, if no certification is issued, the first
fiscal year commencing after the date upon which the qualified
manufacturing facility or the qualified research and development
facility commences operation.
(2) In accordance with paragraph (4) of subdivision (d), the
annual payment to a proponent of each capital investment incentive
amount shall be contingent upon the proponent's payment of a
community services fee.
(b) For purposes of this section:
(1) "Qualified manufacturing facility" means a proposed
manufacturing facility that meets all of the following criteria:
(A) The proponent's initial investment in that facility, in real
and personal property, necessary for the full and normal operation of
that facility, made pursuant to the capital investment incentive
program, that comprises any portion of that facility or has its situs
at that facility, exceeds two hundred fifty million dollars
($250,000,000). Compliance with this subparagraph shall be certified
by the Governor's Office of Business and Economic Development upon
the director's approval of a proponent's application for
certification of a qualified manufacturing facility. An application
for certification shall be submitted by a proponent to the Governor's
Office of Business and Economic Development in writing in the time
and manner as specified by the director.
(B) The facility is to be located within the jurisdiction of the
electing county, city and county, or city to which the request is
made for payment of capital investment incentive amounts.
(C) The facility is operated by any of the following:
(i) A business described in Codes 3500 to 3899, inclusive, of the
Standard Industrial Classification (SIC) Manual published by the
United States Office of Management and Budget, 1987 edition, except
that "January 1, 1997," shall be substituted for "January 1, 1994,"
in each place in which it appears.
(ii) A business engaged in the recovery of minerals from
geothermal resources, including the proportional amount of a
geothermal electric generating plant that is integral to the recovery
process by providing electricity for it.
(iii) A business engaged in the manufacturing of parts or
components related to the production of electricity using solar,
wind, biomass, hydropower, or geothermal resources on or after July
1, 2010.
(D) The proponent is currently engaged in any of the following:
(i) commercial production, (ii) the perfection of the manufacturing
process, or (iii) the perfection of a product intended to be
manufactured.
(2) "Qualified research and development facility" means a proposed
research and development facility that meets all of the following
criteria:
(A) The proponent's initial investment in that facility, in real
and personal property, necessary for the full and normal operation of
that facility, made pursuant to the capital investment incentive
program, that comprises any portion of that facility or has its situs
at that facility, exceeds two hundred fifty million dollars
($250,000,000). Compliance with this subparagraph shall be certified
by the Governor's Office of Business and Economic Development upon
the director's approval of a proponent's application for
certification of a qualified research and development
facility. An application for certification
shall be submitted by a proponent to the Governor's Office of
Business and Economic Development in writing in the time and manner
specified by the director.
(B) The facility is to be located within the jurisdiction of the
electing county, city and county, or city to which the request is
made for payment of capital investment incentive amounts.
(C) The facility is operated by a business described in Code 7371,
7373, or 8711 of the Standard Industrial Classification (SIC) Manual
published by the United States Office of Management and Budget, 1987
edition, except that "January 1, 1997," shall be substituted for
"January 1, 1994," in each place in which it appears.
(D) The proponent is currently engaged in research and
development.
(3) "Proponent" means a party or parties that meet all of the
following criteria:
(A) The party is named in the application to the county, city and
county, or city within which the qualified manufacturing facility or
the qualified research and development facility would be located for
a permit to construct a qualified manufacturing facility or a
qualified research and development facility.
(B) The party will be the fee owner of the qualified manufacturing
facility or the qualified research and development facility upon the
completion of that facility. Notwithstanding the previous sentence,
the party may enter into a sale-leaseback transaction and
nevertheless be considered the proponent.
(C) If a proponent that is receiving capital investment incentive
amounts subsequently leases the subject qualified manufacturing
facility or qualified research and development facility to another
party, the lease may provide for the payment to that lessee of any
portion of a capital investment incentive amount. Any lessee
receiving any portion of a capital investment incentive amount shall
also be considered a proponent for the purposes of subdivision (d).
(4) "Capital investment incentive amount" means, with respect to a
qualified manufacturing facility or a qualified research and
development facility for a relevant fiscal year, an amount up to or
equal to the amount of ad valorem property tax revenue derived by the
participating local agency from the taxation of that portion of the
total assessed value of that real and personal property described in
subparagraph (A) of paragraph (1) or subparagraph (A) of paragraph
(2) that is in excess of twenty-five million dollars ($25,000,000).
(5) "Development" means a systematic application of knowledge or
understanding, directed toward the production of useful materials,
devices, and systems or methods, including design, development, and
improvement of prototypes and new processes to meet specific
requirements.
(6) "Manufacturing" means the activity of converting or
conditioning property by changing the form, composition, quality, or
character of the property for ultimate sale at retail or use in the
manufacturing of a product to be ultimately sold at retail.
Manufacturing includes any improvements to tangible personal property
that result in a greater service life or greater functionality than
that of the original property.
(7) "Research" means either basic research or applied research.
(A) "Applied research" means a systematic study to gain knowledge
or understanding necessary to determine the means by which a
recognized and specific need may be met.
(B) "Basic research" means a systematic study directed toward
fuller knowledge or understanding of the fundamental aspects of
phenomena and of observable facts without specific applications
toward processes or products in mind.
(c) A city or special district may, upon the approval by a
majority of the entire membership of its governing body, pay to the
county, city and county, or city an amount equal to the amount of ad
valorem property tax revenue allocated to that city or special
district, but not the actual allocation, derived from the taxation of
that portion of the total assessed value of that real and personal
property described in subparagraph (A) of paragraph (1) of
subdivision (b) or subparagraph (A) of paragraph (2) of subdivision
(b) that is in excess of twenty-five million dollars ($25,000,000).
(d) A proponent whose request for the payment of capital
investment incentive amounts is approved by an electing county, city
and county, or city shall enter into a community services agreement
with that county, city and county, or city that includes, but is not
limited to, all of the following provisions:
(1) A provision requiring that a community services fee be
remitted by the proponent to the county, city and county, or city, in
each fiscal year, in an amount that is equal to 25 percent of the
capital investment incentive amount calculated for that proponent for
that fiscal year, except that in no fiscal year shall the amount of
the community services fee exceed two million dollars ($2,000,000).
(2) A provision specifying the dates in each relevant fiscal year
upon which payment of the community services fee is due and
delinquent, and the rate of interest to be charged to a proponent for
any delinquent portion of the community services fee amount.
(3) A provision specifying the procedures and rules for the
determination of underpayments or overpayments of a community
services fee, for the appeal of determinations of any underpayment,
and for the refunding or crediting of any overpayment.
(4) A provision specifying that a proponent is ineligible to
receive a capital investment incentive amount if that proponent is
currently delinquent in the payment of any portion of a community
services fee amount, if the qualified manufacturing facility or the
qualified research and development facility is constructed in a
manner materially different from the facility as described in
building permit application materials, or if the facility is no
longer operated as a qualified manufacturing facility or a qualified
research and development facility meeting the requirements of
paragraph (1) or (2) of subdivision (b), as applicable. If a
proponent becomes ineligible to receive a capital investment
incentive amount as a result of an agreement provision included
pursuant to this subparagraph, the running of the number of
consecutive fiscal years specified in an agreement made pursuant to
subdivision (a) is not tolled during the period in which the
proponent is ineligible.
(5) A provision that sets forth a job creation plan with respect
to the relevant qualified manufacturing facility or the qualified
research and development facility. The plan shall specify the number
of jobs to be created by that facility, and the types of jobs and
compensation ranges to be created thereby. The plan shall also
specify that for the entire term of the community services agreement,
both of the following shall apply:
(A) All of the employees working at the qualified manufacturing
facility or the qualified research and development facility shall be
covered by an employer-sponsored health benefits plan.
(B) The average weekly wage, exclusive of overtime, paid to all of
the employees working at the qualified manufacturing facility or the
qualified research and development facility, who are not management
or supervisory employees, shall be not less than the state average
weekly wage.
For the purpose of this subdivision, "state average weekly wage"
means the average weekly wage paid by employers to employees covered
by unemployment insurance, as reported to the Employment Development
Department for the four calendar quarters ending June 30 of the
preceding calendar year.
(6) (A) In the case in which the proponent fails to operate the
qualified manufacturing facility or the qualified research and
development facility as required by the community services agreement,
a provision that requires the recapture of any portion of any
capital investment incentive amounts previously paid to the proponent
equal to the lesser of the following:
(i) All of the capital investment incentive amounts paid to the
proponent, less all of the community services fees received from the
proponent, and less any capital investment incentive amounts
previously recaptured.
(ii) The last capital investment incentive amount paid to the
proponent, less the last community services fee received from the
proponent, multiplied by 40 percent of the number of years remaining
in the community services agreement, but not to exceed 10 years, and
less any capital investment incentive amounts previously recaptured.
(B) If the proponent fails to operate the qualified manufacturing
facility or the qualified research and development facility as
required by the community services agreement, the county, city and
county, or city may, upon a finding that good cause exists, waive any
portion of the recapture of any capital investment incentive amount
due under this subdivision. For the purpose of this subdivision, good
cause includes, but is not limited to, the following:
(i) The proponent has sold or leased the property to a person who
has entered into an agreement with the county, city and county, or
city to assume all of the responsibilities of the proponent under the
community services agreement.
(ii) The qualified manufacturing facility or the qualified
research and development facility has been rendered inoperable and
beyond repair as a result of an act of God.
(C) For purposes of this subdivision, failure to operate a
qualified manufacturing facility or a qualified research and
development facility as required by the community services agreement
includes, but is not limited to, failure to establish the number of
jobs specified in the jobs creation plan created pursuant to
paragraph (5).
(e) (1) Each county, city and county, or city that elects to
establish a capital investment incentive program shall notify the
Governor's Office of Business and Economic Development of its
election to do so no later than June 30 of the fiscal year in which
the election was made.
(2) In addition to the information required to be reported
pursuant to paragraph (1), each county, city and county, or city that
has elected to establish a capital investment incentive program
shall notify the Governor's Office of Business and Economic
Development each fiscal year no later than June 30 of the amount of
any capital investment incentive payments made and the proponent of
the qualified manufacturing facility or the qualified research and
development facility to whom the payments were made during that
fiscal year.
(3) The Governor's Office of Business and Economic Development
shall compile the information submitted by each county, city and
county, and city pursuant to paragraphs (1) and (2) and submit a
report to the Legislature containing this information no later than
October 1, every two years commencing October 1, 2000.
(f) This section is repealed on June 30, 2013.
SEC. 24. Section 51298 is added to the Government Code, to read:
51298. It is the intent of the Legislature in enacting this
chapter to provide local governments with opportunities to attract
large manufacturing facilities to invest in their communities and to
encourage industries, such as high technology, aerospace, automotive,
biotechnology, software, environmental sources, and others, to
locate and invest in those facilities in California.
(a) Commencing in the 1998-99 fiscal year, the governing body of a
county, city and county, or city, may, by means of an ordinance or
resolution approved by a majority of its entire membership, elect to
establish a capital investment incentive program. In any county, city
and county, or city in which the governing body has so elected, the
county, city and county, or city shall, upon the approval by a
majority of the entire membership of its governing body of a written
request therefor, pay a capital investment incentive amount to the
proponent of a qualified manufacturing facility for up to 15
consecutive fiscal years. A request for the payment of capital
investment incentive amounts shall be filed by a proponent in writing
with the governing body of an electing county, city and county, or
city in the time and manner specified in procedures adopted by that
governing body. In the case in which the governing body of an
electing county, city and county, or city approves a request for the
payment of capital investment incentive amounts, both of the
following conditions shall apply:
(1) The consecutive fiscal years during which a capital investment
incentive amount is to be paid shall commence with the first fiscal
year commencing after the date upon which the qualified manufacturing
facility is certified for occupancy or, if no certification is
issued, the first fiscal year commencing after the date upon which
the qualified manufacturing facility commences operation.
(2) In accordance with paragraph (4) of subdivision (d), the
annual payment to a proponent of each capital investment incentive
amount shall be contingent upon the proponent's payment of a
community services fee.
(b) For purposes of this section:
(1) "Qualified manufacturing facility" means a proposed
manufacturing facility that meets all of the following criteria:
(A) The proponent's initial investment in that facility, in real
and personal property, necessary for the full and normal operation of
that facility, made pursuant to the capital investment incentive
program, that comprises any portion of that facility or has its situs
at that facility, exceeds one hundred fifty million dollars
($150,000,000). Compliance with this subparagraph shall be certified
by the Business, Transportation and Housing Agency upon the agency's
approval of a proponent's application for certification of a
qualified manufacturing facility. An application for certification
shall be submitted by a proponent to the agency in writing in the
time and manner as specified by the agency.
(B) The facility is to be located within the jurisdiction of the
electing county, city and county, or city to which the request is
made for payment of capital investment incentive amounts.
(C) The facility is operated by any of the following:
(i) A business described in Codes 3500 to 3899, inclusive, of the
Standard Industrial Classification (SIC) Manual published by the
United States Office of Management and Budget, 1987 edition, except
that "January 1, 1997," shall be substituted for "January 1, 1994,"
in each place in which it appears.
(ii) A business engaged in the recovery of minerals from
geothermal resources, including the proportional amount of a
geothermal electric generating plant that is integral to the recovery
process by providing electricity for it.
(iii) A business engaged in the manufacturing of parts or
components related to the production of electricity using solar,
wind, biomass, hydropower, or geothermal resources on or after July
1, 2010.
(D) The proponent is either currently engaged in commercial
production or engaged in the perfection of the manufacturing process,
or the perfection of a product intended to be manufactured.
(2) "Proponent" means a party or parties that meet all of the
following criteria:
(A) The party is named in the application to the county, city and
county, or city within which the qualified manufacturing facility
would be located for a permit to construct a qualified manufacturing
facility.
(B) The party will be the fee owner of the qualified manufacturing
facility upon the completion of that facility. Notwithstanding the
previous sentence, the party may enter into a sale-leaseback
transaction and nevertheless be considered the proponent.
(C) If a proponent that is receiving capital investment incentive
amounts subsequently leases the subject qualified manufacturing
facility to another party, the lease may provide for the payment to
that lessee of any portion of a capital investment incentive amount.
Any lessee receiving any portion of a capital investment incentive
amount shall also be considered a proponent for the purposes of
subdivision (d).
(3) "Capital investment incentive amount" means, with respect to a
qualified manufacturing facility for a relevant fiscal year, an
amount up to or equal to the amount of ad valorem property tax
revenue derived by the participating local agency from the taxation
of that portion of the total assessed value of that real and personal
property described in subparagraph (A) of paragraph (1) that is in
excess of one hundred fifty million dollars ($150,000,000).
(4) "Manufacturing" means the activity of converting or
conditioning property by changing the form, composition, quality, or
character of the property for ultimate sale at retail or use in the
manufacturing of a product to be ultimately sold at retail.
Manufacturing includes any improvements to tangible personal property
that result in a greater service life or greater functionality than
that of the original property.
(c) A city or special district may, upon the approval by a
majority of the entire membership of its governing body, pay to the
county, city and county, or city an amount equal to the amount of ad
valorem property tax revenue allocated to that city or special
district, but not the actual allocation, derived from the taxation of
that portion of the total assessed value of that real and personal
property described in subparagraph (A) of paragraph (1) of
subdivision (b) that is in excess of one hundred fifty million
dollars ($150,000,000).
(d) A proponent whose request for the payment of capital
investment incentive amounts is approved by an electing county, city
and county, or city shall enter into a community services agreement
with that county, city and county, or city that includes, but is not
limited to, all of the following provisions:
(1) A provision requiring that a community services fee be
remitted by the proponent to the county, city and county, or city, in
each fiscal year subject to the agreement, in an amount that is
equal to 25 percent of the capital investment incentive amount
calculated for that proponent for that fiscal year, except that in no
fiscal year shall the amount of the community services fee exceed
two million dollars ($2,000,000).
(2) A provision specifying the dates in each relevant fiscal year
upon which payment of the community services fee is due and
delinquent, and the rate of interest to be charged to a proponent for
any delinquent portion of the community services fee amount.
(3) A provision specifying the procedures and rules for the
determination of underpayments or overpayments of a community
services fee, for the appeal of determinations of any underpayment,
and for the refunding or crediting of any overpayment.
(4) A provision specifying that a proponent is ineligible to
receive a capital investment incentive amount if that proponent is
currently delinquent in the payment of any portion of a community
services fee amount, if the qualified manufacturing facility is
constructed in a manner materially different from the facility as
described in building permit application materials, or if the
facility is no longer operated as a qualified manufacturing facility
meeting the requirements of paragraph (1) of subdivision (b). If a
proponent becomes ineligible to receive a capital investment
incentive amount as a result of an agreement provision included
pursuant to this subparagraph, the running of the number of
consecutive fiscal years specified in an agreement made pursuant to
subdivision (a) is not tolled during the period in which the
proponent is ineligible.
(5) A provision that sets forth a job creation plan with respect
to the relevant qualified manufacturing facility. The plan shall
specify the number of jobs to be created by that facility, and the
types of jobs and compensation ranges to be created thereby. The plan
shall also specify that for the entire term of the community
services agreement, both of the following shall apply:
(A) All of the employees working at the qualified manufacturing
facility shall be covered by an employer-sponsored health benefits
plan.
(B) The average weekly wage, exclusive of overtime, paid to all of
the employees working at the qualified manufacturing facility, who
are not management or supervisory employees, shall be not less than
the state average weekly wage.
For the purpose of this subdivision, "state average weekly wage"
means the average weekly wage paid by employers to employees covered
by unemployment insurance, as reported to the Employment Development
Department for the four calendar quarters ending June 30 of the
preceding calendar year.
(6) (A) In the case in which the proponent fails to operate the
qualified manufacturing facility as required by the community
services agreement, a provision that requires the recapture of any
portion of any capital investment incentive amounts previously paid
to the proponent equal to the lesser of the following:
(i) All of the capital investment incentive amounts paid to the
proponent, less all of the community services fees received from the
proponent, and less any capital investment incentive amounts
previously recaptured.
(ii) The last capital investment incentive amount paid to the
proponent, less the last community services fee received from the
proponent, multiplied by 40 percent of the number of years remaining
in the community services agreement, but not to exceed 10 years, and
less any capital investment incentive amounts previously recaptured.
(B) If the proponent fails to operate the qualified manufacturing
facility as required by the community services agreement, the county,
city and county, or city may, upon a finding that good cause exists,
waive any portion of the recapture of any capital investment
incentive amount due under this subdivision. For the purpose of this
subdivision, good cause includes, but is not limited to, the
following:
(i) The proponent has sold or leased the property to a person who
has entered into an agreement with the county, city and county, or
city to assume all of the responsibilities of the proponent under the
community services agreement.
(ii) The qualified manufacturing facility has been rendered
inoperable and beyond repair as a result of an act of God.
(C) For purposes of this subdivision, failure to operate a
qualified manufacturing facility as required by the community
services agreement includes, but is not limited to, failure to
establish the number of jobs specified in the jobs creation plan
created pursuant to paragraph (5).
(e) (1) Each county, city and county, or city that elects to
establish a capital investment incentive program shall notify the
Business, Transportation and Housing Agency of its election to do so
no later than June 30th of the fiscal year in which the election was
made.
(2) In addition to the information required to be reported
pursuant to paragraph (1), each county, city and county, or city that
has elected to establish a capital investment incentive program
shall notify the Business, Transportation and Housing Agency each
fiscal year no later than June 30th of the amount of any capital
investment incentive payments made and the proponent of the qualified
manufacturing facility to whom the payments were made during that
fiscal year.
(3) The Business, Transportation and Housing Agency shall compile
the information submitted by each county, city and county, and city
pursuant to paragraphs (1) and (2) and submit a report to the
Legislature containing this information no later than October 1,
every two years commencing October 1, 2000.
(f) This section shall become operative on July 1, 2013.
SEC. 25. Section 76104.7 of the Government Code is amended to
read:
76104.7. (a) Except as otherwise provided in this section, in
addition to the penalty levied pursuant to Section 76104.6, there
shall be levied an additional state-only penalty of four dollars ($4)
for every ten dollars ($10), or part of ten dollars ($10), in each
county upon every fine, penalty, or forfeiture imposed and collected
by the courts for all criminal offenses, including all offenses
involving a violation of the Vehicle Code or any local ordinance
adopted pursuant to the Vehicle Code.
(b) This additional penalty shall be collected together with, and
in the same manner as, the amounts established by Section 1464 of the
Penal Code. These moneys shall be taken from fines and forfeitures
deposited with the county treasurer prior to any division pursuant to
Section 1463 of the Penal Code. These funds shall be deposited into
the county treasury DNA Identification Fund. One hundred percent of
these funds, including any interest earned thereon, shall be
transferred to the state Controller at the same time that moneys are
transferred pursuant to paragraph (2) of subdivision (b) of Section
76104.6, for deposit into the state's DNA Identification Fund. These
funds shall be used to fund the operations of the Department of
Justice forensic laboratories, including the operation of the DNA
Fingerprint, Unsolved Crime and Innocence Protection Act, and to
facilitate compliance with the requirements of subdivision (e) of
Section 299.5 of the Penal Code.
(c) This additional penalty does not apply to the following:
(1) Any restitution fine.
(2) Any penalty authorized by Section 1464 of the Penal Code or
this chapter.
(3) Any parking offense subject to Article 3 (commencing with
Section 40200) of Chapter 1 of Division 17 of the Vehicle Code.
(4) The state surcharge authorized by Section 1465.7 of the Penal
Code.
(d) The fees collected pursuant to this section shall not be
subject to subdivision (e) of Section 1203.1d of the Penal Code, but
shall be disbursed under paragraph (3) of subdivision (b) of Section
1203.1d of the Penal Code.
SEC. 26. Section 11873 of the Insurance Code is amended to read:
11873. (a) Except as provided by subdivision (b), the fund shall
not be subject to the provisions of the Government Code made
applicable to state agencies generally or collectively, unless the
section specifically names the fund as an agency to which the
provision applies.
(b) The fund shall be subject to the provisions of Chapter 10.3
(commencing with Section 3512) of Division 4 of Title 1 of, Chapter
3.5 (commencing with Section 6250) of Division 7 of Title 1 of,
Chapter 6.5 (commencing with Section 8543) of Division 1 of Title 2
of, Article 9 (commencing with Section 11120) of Chapter 1 of Part 1
of Division 3 of Title 2 of, the Government Code, and Division 5
(commencing with Section 18000) of Title 2 of the Government Code,
with the exception of all of the following provisions of that
division:
(1)
Article 1 (commencing with Section 19820) and Article 2 (commencing
with Section 19823) of Chapter 2 of Part 2.6 of Division 5.
(2) Sections 19849.2, 19849.3, 19849.4, and 19849.5.
(3) Chapter 4.5 (commencing with Section 19993.1) of Part 2.6 of
Division 5.
(c) Except as provided in subdivisions (d) and (e) for the period
from July 1, 2012, to June 30, 2013, inclusive, and notwithstanding
any provision of the Government Code or any other provision of law,
the positions funded by the State Compensation Insurance Fund are
exempt from any hiring freezes and staff cutbacks otherwise required
by law. This subdivision is declaratory of existing law.
(d) Notwithstanding any other law, employees of the fund shall,
without limitation, be subject to any and all reductions in state
employee compensation imposed by the Legislature on other state
employees for the period from July 1, 2012, to June 30, 2013,
inclusive, regardless of the means adopted to effect those
reductions.
(e) With the exception of the reductions authorized in subdivision
(d), if any provision of this section, or any practice or procedure
adopted pursuant to this section, is in conflict with the provisions
of a memorandum of understanding reached pursuant to Section 3517.5
of the Government Code, the memorandum of understanding shall be
controlling without further legislative action, except that if the
provisions of a memorandum of understanding require the expenditure
of funds, the provisions shall not become effective unless approved
by the Legislature in the annual Budget Act.
SEC. 27. Section 62.9 of the Labor Code is amended to read:
62.9. (a) (1) The director shall levy and collect assessments
from employers in accordance with this section. The total amount of
the assessment collected shall be the amount determined by the
director to be necessary to produce the revenue sufficient to fund
the programs specified by Section 62.7, except that the amount
assessed in any year for those purposes shall not exceed 50 percent
of the amounts appropriated from the General Fund for the support of
the occupational safety and health program for the 1993-94 fiscal
year, adjusted for inflation. The director also shall include in the
total assessment amount the department's costs for administering the
assessment, including the collections process and the cost of
reimbursing the Employment Development Department or another agency
or department for its cost of collection activities pursuant to
subdivision (c).
(2) The insured employers and private sector self-insured
employers that, pursuant to subdivision (b), are subject to
assessment shall be assessed, respectively, on the basis of their
annual payroll subject to premium charges or their annual payroll
that would be subject to premium charges if the employer were
insured, as follows:
(A) An employer with a payroll of less than two hundred fifty
thousand dollars ($250,000) shall be assessed one hundred dollars
($100).
(B) An employer with a payroll of two hundred fifty thousand
dollars ($250,000) or more, but not more than five hundred thousand
dollars ($500,000), shall be assessed two hundred dollars ($200).
(C) An employer with a payroll of more than five hundred thousand
dollars ($500,000), but not more than seven hundred fifty thousand
dollars ($750,000), shall be assessed four hundred dollars ($400).
(D) An employer with a payroll of more than seven hundred fifty
thousand dollars ($750,000), but not more than one million dollars
($1,000,000), shall be assessed six hundred dollars ($600).
(E) An employer with a payroll of more than one million dollars
($1,000,000), but not more than one million five hundred thousand
dollars ($1,500,000), shall be assessed eight hundred dollars ($800).
(F) An employer with a payroll of more than one million five
hundred thousand dollars ($1,500,000), but not more than two million
dollars ($2,000,000), shall be assessed one thousand dollars
($1,000).
(G) An employer with a payroll of more than two million dollars
($2,000,000), but not more than two million five hundred thousand
dollars ($2,500,000), shall be assessed one thousand five hundred
dollars ($1,500).
(H) An employer with a payroll of more than two million five
hundred thousand dollars ($2,500,000), but not more than three
million five hundred thousand dollars ($3,500,000), shall be assessed
two thousand dollars ($2,000).
(I) An employer with a payroll of more than three million five
hundred thousand dollars ($3,500,000), but not more than four million
five hundred thousand dollars ($4,500,000), shall be assessed two
thousand five hundred dollars ($2,500).
(J) An employer with a payroll of more than four million five
hundred thousand dollars ($4,500,000), but not more than five million
five hundred thousand dollars ($5,500,000), shall be assessed three
thousand dollars ($3,000).
(K) An employer with a payroll of more than five million five
hundred thousand dollars ($5,500,000), but not more than seven
million dollars ($7,000,000), shall be assessed three thousand five
hundred dollars ($3,500).
(L) An employer with a payroll of more than seven million dollars
($7,000,000), but not more than twenty million dollars ($20,000,000),
shall be assessed six thousand seven hundred dollars ($6,700).
(M) An employer with a payroll of more than twenty million dollars
($20,000,000) shall be assessed ten thousand dollars ($10,000).
(b) (1) In the manner as specified by this section, the director
shall identify those insured employers having a workers' compensation
experience modification rating of 1.25 or more, and private sector
self-insured employers having an equivalent experience modification
rating of 1.25 or more as determined pursuant to subdivision (e).
(2) The assessment required by this section shall be levied
annually, on a calendar year basis, on those insured employers and
private sector self-insured employers, as identified pursuant to
paragraph (1), having the highest workers' compensation experience
modification ratings or equivalent experience modification ratings,
that the director determines to be required numerically to produce
the total amount of the assessment to be collected pursuant to
subdivision (a).
(c) The director shall collect the assessment from insured
employers as follows:
(1) Upon the request of the director, the Department of Insurance
shall direct the licensed rating organization designated as the
department's statistical agent to provide to the director, for
purposes of subdivision (b), a list of all insured employers having a
workers' compensation experience rating modification of 1.25 or
more, according to the organization's records at the time the list is
requested, for policies commencing the year preceding the year in
which the assessment is to be collected.
(2) The director shall determine the annual payroll of each
insured employer subject to assessment from the payroll that was
reported to the licensed rating organization identified in paragraph
(1) for the most recent period for which one full year of payroll
information is available for all insured employers.
(3) On or before September 1 of each year, the director shall
determine each of the current insured employers subject to
assessment, and the amount of the total assessment for which each
insured employer is liable. The director immediately shall notify
each insured employer, in a format chosen by the insurer, of the
insured's obligation to submit payment of the assessment to the
director within 30 days after the date the billing was mailed, and
warn the insured of the penalties for failure to make timely and full
payment as provided by this subdivision.
(4) The director shall identify any insured employers that, within
30 days after the mailing of the billing notice, fail to pay, or
object to, their assessments. The director shall mail to each of
these employers a notice of delinquency and a notice of the intention
to assess penalties, advising that, if the assessment is not paid in
full within 15 days after the mailing of the notices, the director
will levy against the employer a penalty equal to 25 percent of the
employer's assessment, and will refer the assessment and penalty to
another agency or department for collection. The notices required by
this paragraph shall be sent by United States first-class mail.
(5) If an assessment is not paid by an insured employer within 15
days after the mailing of the notices required by paragraph (4), the
director shall refer the delinquent assessment and the penalty to the
Employment Development Department, or another agency or department,
as deemed appropriate by the director, for collection pursuant to
Section 1900 of the Unemployment Insurance Code.
(d) The director shall collect the assessment directly from
private sector self-insured employers. The failure of any private
sector self-insured employer to pay the assessment as billed
constitutes grounds for the suspension or termination of the employer'
s certificate to self-insure.
(e) The director shall adopt regulations implementing this section
that include provision for a method of determining experience
modification ratings for private sector self-insured employers that
is generally equivalent to the modification ratings that apply to
insured employers and is weighted by both severity and frequency.
(f) The director shall determine whether the amount collected
pursuant to any assessment exceeds expenditures, as described in
subdivision (a), for the current year and shall credit the amount of
any excess to any deficiency in the prior year's assessment or, if
there is no deficiency, against the assessment for the subsequent
year.
SEC. 28. Section 972.1 of the Military and Veterans Code, as
amended by Section 1 of Chapter 183 of the Statutes of 2009, is
amended to read:
972.1. (a) The sum of five hundred thousand dollars ($500,000) is
hereby appropriated from the General Fund to the Department of
Veterans Affairs for allocation, during the 1989-90 fiscal year, for
purposes of funding the activities of county veterans service offices
pursuant to this section. Funds for allocation in future years shall
be as provided in the annual Budget Act.
(b) Funds shall be disbursed each fiscal year on a pro rata basis
to counties that have established and maintain a county veterans
service office in accordance with the staffing level and workload of
each county veterans service office under a formula based upon
performance that shall be developed by the Department of Veterans
Affairs for these purposes.
(1) For the purposes of this section, "workload unit" means a
specific claim activity that is used to allocate subvention funds to
counties, which is approved by the department, and performed by
county veterans service offices.
(2) For the purposes of this subdivision, the department, by June
30, 2013, shall develop a performance-based formula that will
incentivize county veterans service offices to perform workload units
that help veterans access federal compensation and pension benefits
and other benefits, in order to maximize the amount of federal money
received by California veterans.
(c) The department shall annually determine the amount of new or
increased monetary benefits paid to eligible veterans by the federal
government attributable to the assistance of county veterans service
offices. The department shall, on or before January 1 of each year,
prepare and transmit its determination for the preceding fiscal year
to the Department of Finance and the Legislature. The Department of
Finance shall review the department's determination in time to use
the information in the annual Budget Act for the budget of the
department for the next fiscal year.
(d) The department shall conduct a review of the high-performing
and low-performing county veterans service offices and based on this
review, shall produce a best-practices manual for county veterans
service offices by June 30, 2013.
(e) (1) The Legislature finds and declares that 50 percent of the
amount annually budgeted for county veterans service offices is
approximately eleven million dollars ($11,000,000). The Legislature
further finds and declares that it is an efficient and reasonable use
of state funds to increase the annual budget for county veterans
service offices in an amount not to exceed eleven million dollars
($11,000,000) if it is justified by the monetary benefits to the
state's veterans attributable to the effort of these offices.
(2) It is the intent of the Legislature, after reviewing the
department's determination in subdivision (c), to consider an
increase in the annual budget for county veterans service offices in
an amount not to exceed five million dollars ($5,000,000), if the
monetary benefits to the state's veterans attributable to the
assistance of county veterans service offices justify that increase
in the budget.
(f) This section shall remain in effect only until January 1,
2016, and as of that date is repealed.
SEC. 29. Section 6611 of the Public Contract Code is amended to
read:
6611. (a) Notwithstanding any other provision of law, the
Department of General Services may, relative to contracts for goods,
services, information technology, and telecommunications, use a
negotiation process if the department finds that one or more of the
following conditions exist:
(1) The business need or purpose of a procurement or contract can
be further defined as a result of a negotiation process.
(2) The business need or purpose of a procurement or contract is
known by the department, but a negotiation process may identify
different types of solutions to fulfill this business need or
purpose.
(3) The complexity of the purpose or need suggests a bidder's
costs to prepare and develop a solicitation response are extremely
high.
(4) The business need or purpose of a procurement or contract is
known by the department, but negotiation is necessary to ensure that
the department is receiving the best value or the most cost-efficient
goods, services, information technology, and telecommunications.
(b) When it is in the best interests of the state, the department
may negotiate amendments to the terms and conditions, including scope
of work, of existing contracts for goods, services, information
technology, and telecommunications, whether or not the original
contract was the result of competition, on behalf of itself or
another state agency.
(c) (1) The department shall establish the procedures and
guidelines for the negotiation process described in subdivision (a),
which procedures and guidelines shall include, but not be limited to,
a clear description of the methodology that will be used by the
department to evaluate a bid for the procurement goods, services,
information technology, and telecommunications.
(2) The procedures and guidelines described in paragraph (1) may
include provisions that authorize the department to receive
supplemental bids after the initial bids are opened. If the
procedures and guidelines include these provisions, the procedures
and guidelines shall specify the conditions under which supplemental
bids may be received by the department.
(d) An unsuccessful bidder shall have no right to protest the
results of the negotiating process undertaken pursuant to this
section. As a remedy, an unsuccessful bidder may file a petition for
a writ of mandate in accordance with Section 1085 of the Code of
Civil Procedure. The venue for the petition for a writ of mandate
shall be Sacramento, California. An action filed pursuant to this
subdivision shall be given preference by the court.
(e) (1) The California Technology Agency may utilize the
negotiation process described in subdivisions (a) and (b) for the
purpose of procuring information technology and telecommunications
goods and services on behalf of state departments and information
technology projects.
(2) Nothing in this section shall be interpreted to supersede the
department's existing statutory control over procurement processes as
dictated in Section 12100.
(f) On or before January 1, 2013, and annually thereafter, the
California Technology Agency and the Department of General Services
shall report to the relevant budget subcommittees of each house of
the Legislature on the use of subdivision (e) during budget hearings.
(g) Subdivisions (e) and (f) shall remain in effect only until
January 1, 2018, unless an enacted statute deletes or extends that
date. Procurements still in the negotiation process pursuant to
subdivision (e) on January 1, 2018, shall complete negotiations using
that process.
SEC. 30. Section 8352.3 of the Revenue and Taxation Code is
amended to read:
8352.3. (a) Subject to Sections 8352 and 8352.1, and except as
otherwise provided in subdivision (b), all moneys deposited to the
credit of the Motor Vehicle Fuel Account attributable to the
distribution of motor vehicle fuel for use or used in propelling an
aircraft in the state shall be transferred to the Aeronautics Account
in the State Transportation Fund, for allocation as follows:
(1) To pay the pro rata cost of the Controller and the board under
subdivisions (b), (c), and (d) of Section 8352.1.
(2) To pay for the support of the Department of Transportation,
for the administration of the State Aeronautics Act (Division 9
(commencing with Section 21001) of the Public Utilities Code).
(3) Remaining balance to be available for expenditures in
accordance with Section 21602 and Article 4 (commencing with Section
21680) of Chapter 4 of Part 1 of Division 9 of the Public Utilities
Code.
(b) Commencing July 1, 2012, the revenues attributable to the
taxes imposed pursuant to subdivision (b) of Section 7360 and Section
7361.1 and otherwise to be deposited in the Aeronautics Account
pursuant to subdivision (a) shall instead be transferred to the
General Fund. The revenues attributable to the taxes imposed pursuant
to subdivision (b) of Section 7360 and Section 7361.1 that were
deposited in the Aeronautics Account in the 2010-11 and 2011-12
fiscal years shall be transferred to the General Fund.
SEC. 31. Section 8352.4 of the Revenue and Taxation Code is
amended to read:
8352.4. (a) Subject to Sections 8352 and 8352.1, and except as
otherwise provided in subdivision (b), there shall be transferred
from the money deposited to the credit of the Motor Vehicle Fuel
Account to the Harbors and Watercraft Revolving Fund, for expenditure
in accordance with Division 1 (commencing with Section 30) of the
Harbors and Navigation Code, the sum of six million six hundred
thousand dollars ($6,600,000) per annum, representing the amount of
money in the Motor Vehicle Fuel Account attributable to taxes imposed
on distributions of motor vehicle fuel used or usable in propelling
vessels. The actual amount shall be calculated using the annual
reports of registered boats prepared by the Department of Motor
Vehicles for the United States Coast Guard and the formula and method
of the December 1972 report prepared for this purpose and submitted
to the Legislature on December 26, 1972, by the Director of
Transportation. If the amount transferred during each fiscal year is
in excess of the calculated amount, the excess shall be retransferred
from the Harbors and Watercraft Revolving Fund to the Motor Vehicle
Fuel Account. If the amount transferred is less than the amount
calculated, the difference shall be transferred from the Motor
Vehicle Fuel Account to the Harbors and Watercraft Revolving Fund. No
adjustment shall be made if the computed difference is less than
fifty thousand dollars ($50,000), and the amount shall be adjusted to
reflect any temporary or permanent increase or decrease that may be
made in the rate under the Motor Vehicle Fuel Tax Law. Payments
pursuant to this section shall be made prior to payments pursuant to
Section 8352.2.
(b) Commencing July 1, 2012, the revenues attributable to the
taxes imposed pursuant to subdivision (b) of Section 7360 and Section
7361.1 and otherwise to be deposited in the Harbors and Watercraft
Revolving Fund pursuant to subdivision (a) shall instead be
transferred to the General Fund. The revenues attributable to the
taxes imposed pursuant to subdivision (b) of Section 7360 and Section
7361.1 that were deposited in the Harbors and Watercraft Revolving
Fund in the 2010-11 and 2011-12 fiscal years shall be transferred to
the General Fund.
(c) When deemed necessary by the Department of Transportation and
the Department of Boating and Waterways, the Department of
Transportation, after consultation with the Department of Boating and
Waterways, shall prepare, or cause to be prepared, an updated report
setting forth the current estimate of the amount of money credited
to the Motor Vehicle Fuel Account attributable to taxes imposed on
distributions of motor vehicle fuel used or usable in propelling
vessels. The Department of Transportation shall submit the report to
the Legislature upon its completion.
SEC. 32. Section 8352.5 of the Revenue and Taxation Code is
amended to read:
8352.5. (a) (1) Subject to Sections 8352 and 8352.1, and except
as otherwise provided in subdivision (b), there shall be transferred
from the money deposited to the credit of the Motor Vehicle Fuel
Account to the Department of Food and Agriculture Fund, during the
second quarter of each fiscal year, an amount equal to the estimate
contained in the most recent report prepared pursuant to this
section.
(2) The amounts are not subject to Section 6357 with respect to
the collection of sales and use taxes thereon, and represent the
portion of receipts in the Motor Vehicle Fuel Account during a
calendar year that were attributable to agricultural off-highway use
of motor vehicle fuel which is subject to refund pursuant to Section
8101, less gross refunds allowed by the Controller during the fiscal
year ending June 30th following the calendar year to persons entitled
to refunds for agricultural off-highway use pursuant to Section
8101. Payments pursuant to this section shall be made prior to
payments pursuant to Section 8352.2.
(b) Commencing July 1, 2012, the revenues attributable to the
taxes imposed pursuant to subdivision (b) of Section 7360 and Section
7361.1 and otherwise to be deposited in the Department of Food and
Agriculture Fund pursuant to subdivision (a) shall instead be
transferred to the General Fund. The revenues attributable to the
taxes imposed pursuant to subdivision (b) of Section 7360 and Section
7361.1 that were deposited in the Department of Food and Agriculture
Fund in the 2010-11 and 2011-12 fiscal years shall be transferred to
the General Fund.
(c) On or before September 30, 2012, and on or before September 30
of each even-numbered year thereafter, the Director of
Transportation and the Director of Food and Agriculture shall jointly
prepare, or cause to be prepared, a report setting forth the current
estimate of the amount of money in the Motor Vehicle Fuel Account
attributable to agricultural off-highway use of motor vehicle fuel,
which is subject to refund pursuant to Section 8101 less gross
refunds allowed by the Controller to persons entitled to refunds for
agricultural off-highway use pursuant to Section 8101; and they shall
submit a copy of the report to the Legislature.
SEC. 33. Section 8352.6 of the Revenue and Taxation Code is
amended to read:
8352.6. (a) (1) Subject to Section 8352.1, and except as
otherwise provided in paragraphs (2) and (3), on the first day of
every month, there shall be transferred from moneys deposited to the
credit of the Motor Vehicle Fuel Account to the Off-Highway Vehicle
Trust Fund created by Section 38225 of the Vehicle Code an amount
attributable to taxes imposed upon distributions of motor vehicle
fuel used in the operation of motor vehicles off highway and for
which a refund has not been claimed. Transfers made pursuant to this
section shall be made prior to transfers pursuant to Section 8352.2.
(2) Commencing July 1, 2012, the revenues attributable to the
taxes imposed pursuant to subdivision (b) of Section 7360 and Section
7361.1 and otherwise to be deposited in the Off-Highway Vehicle
Trust Fund pursuant to paragraph (1) shall instead be transferred to
the General Fund. The revenues attributable to the taxes imposed
pursuant to subdivision (b) of Section 7360 and Section 7361.1 that
were deposited in the Off-Highway Vehicle Trust Fund in the 2010-11
and 2011-12 fiscal years shall be transferred to the General Fund.
(3) The Controller shall withhold eight hundred thirty-three
thousand dollars ($833,000) from the monthly transfer to the
Off-Highway Vehicle Trust Fund pursuant to paragraph (1), and
transfer that amount to the General Fund.
(b) The amount transferred to the Off-Highway Vehicle Trust Fund
pursuant to paragraph (1) of subdivision (a), as a percentage of the
Motor Vehicle Fuel Account, shall be equal to the percentage
transferred in the 2006-07 fiscal year. Every five years, starting in
the 2013-14 fiscal year, the percentage transferred may be adjusted
by the Department of Transportation in cooperation with the
Department of Parks and Recreation and the Department of Motor
Vehicles. Adjustments shall be based on, but not limited to, the
changes in the following factors since the 2006-07 fiscal year or the
last adjustment, whichever is more recent:
(1) The number of vehicles registered as off-highway motor
vehicles as required by Division 16.5 (commencing with Section 38000)
of the Vehicle Code.
(2) The number of registered street-legal vehicles that are
anticipated to be used off highway, including four-wheel drive
vehicles, all-wheel drive vehicles, and dual-sport motorcycles.
(3) Attendance at the state vehicular recreation areas.
(4) Off-highway recreation use on federal lands as indicated by
the United States Forest Service's National Visitor Use Monitoring
and the United States Bureau of Land Management's Recreation
Management Information System.
(c) It is the intent of the Legislature that transfers from the
Motor Vehicle Fuel Account to the Off-Highway Vehicle Trust Fund
should reflect the full range of motorized vehicle use off highway
for both motorized recreation and motorized off-road access to other
recreation opportunities. Therefore, the Legislature finds that the
fuel tax baseline established in subdivision (b), attributable to
off-highway estimates of use as of the 2006-07 fiscal year, accounts
for the three categories of vehicles that have been found over the
years to be users of fuel for off-highway motorized recreation or
motorized access to nonmotorized recreational pursuits. These three
categories are registered
off-highway motorized vehicles, registered street-legal
motorized vehicles used off highway, and unregistered off-highway
motorized vehicles.
(d) It is the intent of the Legislature that the off-highway motor
vehicle recreational use to be determined by the Department of
Transportation pursuant to paragraph (2) of subdivision (b) be that
usage by vehicles subject to registration under Division 3
(commencing with Section 4000) of the Vehicle Code, for recreation or
the pursuit of recreation on surfaces where the use of vehicles
registered under Division 16.5 (commencing with Section 38000) of the
Vehicle Code may occur.
SEC. 34. Article 6 (commencing with Section 19290) of Chapter 5 of
Part 10.2 of Division 2 of the Revenue and Taxation Code is
repealed.
SEC. 35. Section 19533 of the Revenue and Taxation Code is amended
to read:
19533. (a) In the event the debtor has more than one debt being
collected by the Franchise Tax Board and the amount collected by the
Franchise Tax Board is insufficient to satisfy the total amount
owing, the amount collected shall be applied in the following
priority:
(1) Payment of any delinquencies transferred for collection under
Article 5 (commencing with Section 19270) of Chapter 5.
(2) Payment of any taxes, additions to tax, penalties, interest,
fees, or other amounts due and payable under Part 7.5 (commencing
with Section 13201), Part 10 (commencing with Section 17001), Part 11
(commencing with Section 23001), or this part, and amounts
authorized to be collected under Section 19722.
(3) Payment of delinquencies collected under Section 10878.
(4) Payment of any amounts due that are referred for collection
under Article 5.5 (commencing with Section 19280) of Chapter 5.
(5) Payment of any delinquencies referred for collection under
Article 7 (commencing with Section 19291) of Chapter 5.
(b) Notwithstanding the payment priority established by this
section, voluntary payments designated by the taxpayer as payment for
a personal income tax liability or as a payment on amounts
authorized to be collected under Section 19722, shall not be applied
pursuant to this priority, but shall instead be applied as
designated.
SEC. 36. Item 7300-001-0001 of Section 2.00 of the Budget Act of
2012 is amended to read:
7300-001-0001--For support of Agricultural
Labor Relations Board......................... 4,904,000
Schedule:
(1) 10-Board Administration..... 1,938,000
(2) 20-General Counsel
Administration.............. 2,966,000
(3) 30.01-Administration
Services.................... 275,000
(4) 30.02-Distributed
Administration Services..... -275,000
SEC. 37. Section 36 of this act shall become operative only if
Assembly Bill 1464 or Senate Bill 1004 of the 2011-12 Regular Session
is enacted as the Budget Act of 2012, and Assembly Bill 1497 or
Senate Bill 1037 of the 2011-12 Regular Session is enacted and amends
the Budget Act of 2012.
SEC. 38. The sum of one thousand dollars ($1,000) is hereby
appropriated from the General Fund to the Department of Finance to
implement this act.
SEC. 39. 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.
