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

SECTION 1.
Section 30515 of the Penal Code is amended to read:
30515.
(a) Notwithstanding Section 30510, “assault weapon” also means any of the following:
(1) A semiautomatic, centerfire rifle that does not have a fixed magazine but has any one of the following:
(A) A pistol grip that protrudes conspicuously beneath the action of the weapon.
(B) A thumbhole stock.
(C) A folding or telescoping stock.
(D) A grenade launcher or flare launcher.
(E) A flash suppressor.
(F) A forward pistol grip.
(2) A semiautomatic, centerfire rifle that has a fixed magazine with the capacity to accept more than 10 rounds.
(3) A semiautomatic, centerfire rifle that has an overall length of less than 30 inches.
(4) A semiautomatic pistol that does not have a fixed magazine but has any one of the following:
(A) A threaded barrel, capable of accepting a flash suppressor, forward handgrip, or silencer.
(B) A second handgrip.
(C) A shroud that is attached to, or partially or completely encircles, the barrel that allows the bearer to fire the weapon without burning the bearer’s hand, except a slide that encloses the barrel.
(D) The capacity to accept a detachable magazine at some location outside of the pistol grip.
(5) A semiautomatic pistol with a fixed magazine that has the capacity to accept more than 10 rounds.
(6) A semiautomatic shotgun that has both of the following:
(A) A folding or telescoping stock.
(B) A pistol grip that protrudes conspicuously beneath the action of the weapon, thumbhole stock, or vertical handgrip.
(7) A semiautomatic shotgun that has the ability to accept a detachable magazine.
(8) Any shotgun with a revolving cylinder.
(b) For purposes of this section, “fixed magazine” means an ammunition feeding device contained in, or permanently attached to, a firearm in such a manner that the device cannot be removed without disassembly of the firearm action.
(c) The Legislature finds a significant public purpose in exempting from the definition of “assault weapon” pistols that are designed expressly for use in Olympic target shooting events. Therefore, those pistols that are sanctioned by the International Olympic Committee and by USA Shooting, the national governing body for international shooting competition in the United States, and that were used for Olympic target shooting purposes as of January 1, 2001, and that would otherwise fall within the definition of “assault weapon” pursuant to this section are exempt, as provided in subdivision (d).
(d) “Assault weapon” does not include either of the following:
(1) Any antique firearm.
(2) Any of the following pistols, because they are consistent with the significant public purpose expressed in subdivision (c):
MANUFACTURER
MODEL
CALIBER
BENELLI
MP90
.22LR
BENELLI
MP90
.32 S&W LONG
BENELLI
MP95
.22LR
BENELLI
MP95
.32 S&W LONG
HAMMERLI
280
.22LR
HAMMERLI
280
.32 S&W LONG
HAMMERLI
SP20
.22LR
HAMMERLI
SP20
.32 S&W LONG
PARDINI
GPO
.22 SHORT
PARDINI
GP-SCHUMANN
.22 SHORT
PARDINI
HP
.32 S&W LONG
PARDINI
MP
.32 S&W LONG
PARDINI
SP
.22LR
PARDINI
SPE
.22LR
WALTHER
GSP
.22LR
WALTHER
GSP
.32 S&W LONG
WALTHER
OSP
.22 SHORT
WALTHER
OSP-2000
.22 SHORT
(3) The Department of Justice shall create a program that is consistent with the purposes stated in subdivision (c) to exempt new models of competitive pistols that would otherwise fall within the definition of “assault weapon” pursuant to this section from being classified as an assault weapon. The exempt competitive pistols may be based on recommendations by USA Shooting consistent with the regulations contained in the USA Shooting Official Rules or may be based on the recommendation or rules of any other organization that the department deems relevant.
SEC. 2.
Section 30680 is added to the Penal Code, to read:
30680.
Section 30605 does not apply to the possession of an assault weapon by a person who has possessed the assault weapon prior to January 1, 2017, if all of the following are applicable:
(a) Prior to January 1, 2017, the person would have been eligible to register that assault weapon pursuant to subdivision (b) of Section 30900.
(b) The person lawfully possessed that assault weapon prior to January 1, 2017.
(c) The person registers the assault weapon by January 1, 2018, in accordance with subdivision (b) of Section 30900.
SEC. 3.
Section 30900 of the Penal Code is amended to read:
30900.
(a) (1) Any person who, prior to June 1, 1989, lawfully possessed an assault weapon, as defined in former Section 12276, as added by Section 3 of Chapter 19 of the Statutes of 1989, shall register the firearm by January 1, 1991, and any person who lawfully possessed an assault weapon prior to the date it was specified as an assault weapon pursuant to former Section 12276.5, as added by Section 3 of Chapter 19 of the Statutes of 1989 or as amended by Section 1 of Chapter 874 of the Statutes of 1990 or Section 3 of Chapter 954 of the Statutes of 1991, shall register the firearm within 90 days with the Department of Justice pursuant to those procedures that the department may establish.
(2) Except as provided in Section 30600, any person who lawfully possessed an assault weapon prior to the date it was defined as an assault weapon pursuant to former Section 12276.1, as it read in Section 7 of Chapter 129 of the Statutes of 1999, and which was not specified as an assault weapon under former Section 12276, as added by Section 3 of Chapter 19 of the Statutes of 1989 or as amended at any time before January 1, 2001, or former Section 12276.5, as added by Section 3 of Chapter 19 of the Statutes of 1989 or as amended at any time before January 1, 2001, shall register the firearm by January 1, 2001, with the department pursuant to those procedures that the department may establish.
(3) The registration shall contain a description of the firearm that identifies it uniquely, including all identification marks, the full name, address, date of birth, and thumbprint of the owner, and any other information that the department may deem appropriate.
(4) The department may charge a fee for registration of up to twenty dollars ($20) per person but not to exceed the reasonable processing costs of the department. After the department establishes fees sufficient to reimburse the department for processing costs, fees charged shall increase at a rate not to exceed the legislatively approved annual cost-of-living adjustment for the department’s budget or as otherwise increased through the Budget Act but not to exceed the reasonable costs of the department. The fees shall be deposited into the Dealers’ Record of Sale Special Account.
(b) (1) Any person who, from January 1, 2001, to December 31, 2016, inclusive, lawfully possessed an assault weapon that does not have a fixed magazine, as defined in Section 30515, including those weapons with an ammunition feeding device that can be readily removed from the firearm with the use of a tool, shall register the firearm before January 1, 2018, but not before the effective date of the regulations adopted pursuant to paragraph (5), with the department pursuant to those procedures that the department may establish by regulation pursuant to paragraph (5).
(2) Registrations shall be submitted electronically via the Internet utilizing a public-facing application made available by the department.
(3) The registration shall contain a description of the firearm that identifies it uniquely, including all identification marks, the date the firearm was acquired, the name and address of the individual from whom, or business from which, the firearm was acquired, as well as the registrant’s full name, address, telephone number, date of birth, sex, height, weight, eye color, hair color, and California driver’s license number or California identification card number.
(4) The department may charge a fee in an amount of up to fifteen dollars ($15) per person but not to exceed the reasonable processing costs of the department. The fee shall be paid by debit or credit card at the time that the electronic registration is submitted to the department. The fee shall be deposited in the Dealers’ Record of Sale Special Account to be used for purposes of this section.
(5) The department shall adopt regulations for the purpose of implementing this subdivision. These regulations are exempt from the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
SEC. 4.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.


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

SECTION 1.
This act shall be known, and may be cited, as the 2015 Realignment Legislation addressing justice reinvestment.
SEC. 2.
The Legislature finds and declares all of the following:
(a) The Legislature is committed to reducing recidivism among criminal offenders, ensuring that local governments have adequate funding to achieve this goal, and facilitating the responsible implementation of the criminal justice policies contained in the 2011 Realignment Legislation addressing public safety.
(b) California must continue to reinvest its criminal justice resources to support community-based corrections programs, evidence-based practices, and local correctional facilities in order to achieve improved public safety returns on this state’s substantial investment in its criminal justice system.
(c) Realigning low-level felony offenders who do not have prior convictions for serious, violent, or sex offenses to locally run community-based corrections programs, which are strengthened through community-based punishment, evidence-based practices, improved supervision strategies, and enhanced secured capacity, has the potential to improve public safety outcomes for adult felons and facilitate their reintegration back into society. However, local governments have indicated that current resources provided by the state to achieve these goals are inadequate. This lack of resources has resulted in deficiencies in bed space, evidence-based programs, and treatment options. Community-based corrections programs require additional funding to meet the level of need and provide an appropriate level of service for offender populations shifted as a result of the 2011 Realignment Legislation addressing public safety.
(d) By enacting the 2011 Realignment Legislation addressing public safety, the Legislature affirmed its commitment to justice reinvestment and stated that the purpose of justice reinvestment is to manage and allocate criminal justice populations more cost effectively, generating savings that can be reinvested in evidence-based strategies that increase public safety while holding offenders accountable.
(e) In order to properly implement the 2011 Realignment Legislation addressing public safety, it is the intent of the Legislature to fully commit to justice reinvestment by using identified state savings generated by the 2011 Realignment Legislation addressing public safety and any other necessary funds to provide local governments with maximum flexibility and adequate funding to manage these new offenders in the manner that is in the best interest of public safety, most appropriate to each county, and consistent with principles of justice reinvestment.
(f) The Department of Corrections and Rehabilitation published a document in April 2012 entitled “The Future of California Corrections,” sometimes referred to as the “Corrections Blueprint” or the “Blueprint,” detailing the department’s plan to implement the 2011 Realignment Legislation, address public safety, and save billions of dollars. The Department of Finance and the Department of Corrections and Rehabilitation published a report in January 2016 entitled “An Update to the Future of California Corrections,” which indicated that, after making certain specified adjustments, the Governor’s proposed budget for the Department of Corrections and Rehabilitation for the 2016–17 fiscal year is one billion three hundred million dollars ($1,300,000,000) less than the pre-Realignment, pre-Blueprint multiyear forecast for the Department of Corrections and Rehabilitation for the same fiscal year. Some or all of these savings, and any future savings, should be allocated to counties to mitigate the effects of the 2011 Realignment Legislation addressing public safety.
SEC. 3.
Chapter 6.4 (commencing with Section 30030) is added to Division 3 of Title 3 of the Government Code, to read:
CHAPTER  6.4. Realignment Reinvestment Fund
30030.
For purposes of this chapter, “realigned offenders” means offenders sentenced to a county jail or to mandatory supervision, or to both county jail and mandatory supervision, pursuant to subdivision (h) of Section 1170 of the Penal Code, offenders subject to postrelease community supervision pursuant to Title 2.05 (commencing with Section 3450) of Part 3 of the Penal Code, and any other offenders under county supervision whose supervision would have been the responsibility of the state if the 2011 Realignment Legislation addressing public safety had not been enacted.
30031.
(a) (1) The Realignment Reinvestment Fund is hereby established in the State Treasury. Moneys in the fund are continuously appropriated and shall be used exclusively for the purposes of this chapter.
(2) (A) Beginning in 2017, on or after July 1, and no later than August 31 of each year, the Director of Finance shall calculate both of the following:
(i) The actual net savings to the state for the immediately preceding fiscal year resulting from the 2011 Realignment Legislation addressing public safety.
(ii) An estimate of the net savings to the state for the current fiscal year resulting from the 2011 Realignment Legislation addressing public safety.
(B) For the calculation pursuant to clauses (i) and (ii) of subparagraph (A), the Director of Finance shall, to the extent possible, use the same methodology used to determine that the proposed 2016–17 budget for the Department of Corrections and Rehabilitation is one billion three hundred million dollars ($1,300,000,000) less than the adjusted multiyear forecast for 2016–17, as reflected on page 30 of the report published by the Department of Finance and the Department of Corrections and Rehabilitation in January 2016, entitled “An Update to the Future of California Corrections.” The Director of Finance shall use the same adjustments used in the report when making savings calculations, including adjustments for employee compensation, retirement contributions, Proposition 98 funding, and the activation of the California Health Care facility.
(3) For the 2016–17 fiscal year, the Controller shall transfer one billion three hundred million dollars ($1,300,000,000) from the General Fund to the Realignment Reinvestment Fund for allocation pursuant to paragraph (5).
(4) Beginning with the 2017–18 fiscal year, and each fiscal year thereafter, the Controller shall transfer an amount equal to the difference between the amount identified in subparagraph (A) and the amount identified in subparagraph (B) from the General Fund to the Realignment Reinvestment Fund for allocation pursuant to paragraph (5).
(A) The estimate of net savings for the current fiscal year calculated pursuant to clause (ii) of subparagraph (A) of paragraph (2).
(B) An adjustment for the immediately preceding fiscal year that is the result of subtracting the amount calculated pursuant to clause (i) of subparagraph (A) of paragraph (2) for that fiscal year from the amount estimated pursuant to clause (ii) of subparagraph (A) of paragraph (2) for that fiscal year.
(5) The Controller shall annually allocate moneys in the Realignment Reinvestment Fund, no later than September 1 of each year, to each county and city and county for deposit in the county’s or city and county’s Realignment Reinvestment Services Account proportionally based on the average daily population of realigned offenders under each county’s supervision for the immediately preceding fiscal year. The Controller shall consult with the Board of State and Community Corrections to determine the average daily population for each county.
(b) There shall be established in each county or city and county treasury a Realignment Reinvestment Services Account to receive all amounts allocated to a county or city and county for purposes of implementing this chapter.
(c) (1) Each county local Community Corrections Partnership established pursuant to subdivision (b) of Section 1230 of the Penal Code shall recommend a comprehensive, locally run supplemental community-based corrections plan to the county board of supervisors. The purpose of the plan shall be to improve the outcomes of the 2011 Realignment Legislation addressing public safety. The plan may include, but shall not be limited to, mental health programs, substance abuse programs, transitional housing programs, job placement programs, improved supervision strategies, community-based punishment programs, increased law enforcement staffing in cities and counties, county jail construction, maintenance, and operation, assessment and criminal prosecution of realigned offenders, and supervision or aftercare for offenders sentenced pursuant to subdivision (h) of Section 1170 of the Penal Code and offenders subject to postrelease community supervision pursuant to Section 3451 of the Penal Code.
(A) The supplemental community-based corrections plan may include, but shall not be limited to, all of the following components:
(i) An assessment of existing law enforcement, probation, education, mental health, health, social services, drug and alcohol, and other services that specifically target realigned offenders and their families.
(ii) An identification and prioritization of the neighborhoods and other areas in the community that face a significant public safety risk from realigned offenders and associated crimes, including, but not limited to, gang activity, burglary, robbery, vandalism, controlled substances sales, firearm-related violence, and substance abuse.
(iii) A local action strategy that provides for a continuum of responses to crime and demonstrates a collaborative and integrated approach for implementing a system of swift, certain, and graduated responses for realigned offenders.
(iv) A schedule of programs identified in clause (iii) that are proposed to be funded pursuant to this subparagraph, including the projected amount of funding for each program.
(v) An accounting of the number of new crimes or violations committed by realigned offenders.
(vi) An evaluation of existing services and any gaps that may exist in those services.
(B) Programs proposed to be funded shall satisfy all of the following requirements:
(i) Be based on evidence-based programs and approaches that have been demonstrated to be effective in reducing crime or programs that improve public safety through incapacitation, prosecution, or treatment of realigned offenders.
(ii) Employ information sharing systems to ensure that county and city actions are fully coordinated and designed to provide data for measuring the success of programs and strategies.
(C) The plan shall also identify the specific objectives of the programs proposed for funding and specified outcome measures to determine the effectiveness of the programs and contain an accounting for all program participants, including those who do not complete the programs. Outcome measures of the programs proposed to be funded shall include, but not be limited to, all of the following when that data is available and relevant to the program:
(i) The rate of arrests per 100,000 population.
(ii) The rate of successful completion of probation and postrelease community supervision.
(iii) The rate of successful completion of restitution and court-ordered community service responsibilities.
(iv) Arrest, incarceration, and probation violation rates of realigned offenders and other program participants.
(v) Quantification of the annual per capita costs of the program.
(D) To assess the effectiveness of programs funded pursuant to this paragraph using the program outcome criteria specified in subparagraph (C), the following periodic reports shall be submitted:
(i) Each county or city and county shall report, beginning October 15, 2017, and annually each October 15 thereafter, to the county board of supervisors and the Board of State and Community Corrections, in a format specified by the board, on the programs funded pursuant to this chapter and program outcomes as specified in subparagraph (C).
(ii) The Board of State and Community Corrections shall compile the local reports and, by March 15, 2018, and by March 15 of each year thereafter, make a report to the Governor and the Legislature on program expenditures within each county and city and county funded pursuant to this section and on the outcomes as specified in subparagraph (C). A report submitted pursuant to this clause shall be submitted in compliance with Section 9795 of the Government Code.
(2) The supplemental community-based corrections plan shall be voted on by an executive committee of each county’s Community Corrections Partnership consisting of the chief probation officer of the county as chair, a chief of police, the sheriff, the district attorney, the public defender, the presiding judge of the superior court, or his or her designee, and one department representative listed in either subparagraph (G), (H), or (J) of paragraph (2) of subdivision (b) of Section 1230 of the Penal Code, as designated by the county board of supervisors for purposes related to the development and presentation of the plan.
(3) If a supplemental community-based corrections plan has been previously approved by a county’s or city and county’s local Community Corrections Partnership, the plan shall be reviewed annually and modified as needed.
(4) The supplemental community-based corrections plan or modified supplemental community-based corrections plan shall be deemed accepted by the county board of supervisors unless the board rejects the plan by a vote of four-fifths of the board, in which case the plan shall go back to the Community Corrections Partnership for further consideration.
(5) The supplemental community-based corrections plan or modified supplemental community-based corrections plan shall be submitted to the Board of State and Community Corrections no later than October 15 of each year.
(d) The Controller shall allocate funds to local jurisdictions for public safety in accordance with this section as described in subdivision (a).
(e) Funds allocated pursuant to subdivision (c) shall be expended or encumbered in accordance with this chapter no later than June 30 of the following fiscal year. A local agency that has not met the requirement of this subdivision shall remit the unspent moneys in the Realignment Reinvestment Services Account to the Controller for deposit in the Realignment Reinvestment Fund.
(f) Beginning in 2017, and no later than May 1 of each year, the Director of Finance shall, in consultation with the Legislative Analyst, develop an estimate of the cost avoidances expected to be realized by the Department of Corrections and Rehabilitation in the current fiscal year that are a result of the 2011 Realignment Legislation addressing public safety and report those estimates to the chairpersons of the committees in each house of the Legislature that consider appropriations and to the Chairperson of the Joint Legislative Budget Committee. A report submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code. The Legislature may consider each year whether to appropriate funds in augmentation of the moneys otherwise allocated pursuant to this chapter in an amount up to and including the amount of cost avoidances reported pursuant to this subdivision.
30032.
(a) Moneys allocated from a Realignment Reinvestment Services Account to a recipient entity shall be expended exclusively for services included in the county’s or city and county’s supplemental community-based corrections plan. These moneys shall supplement existing services and shall not be used to supplant any existing funding for law enforcement services or programs or activities included in the supplemental community-based corrections plan provided by that entity.
(b) In no event shall any moneys allocated from the county’s or city and county’s Realignment Reinvestment Services Account be expended by a recipient entity to fund any of the following:
(1) Administrative overhead costs in excess of 1 percent of a recipient entity’s Realignment Reinvestment Services Account allocation for that fiscal year.
(2) The costs of any capital project or construction project that does not directly support programs or activities included in the supplemental community-based corrections plan.
(c) For purposes of this section, both of the following shall apply:
(1) A “recipient entity” is that entity that actually incurs the expenditures of Realignment Reinvestment Services Account funds allocated pursuant to subdivision (c) of Section 30301.
(2) Administrative overhead costs shall only be charged by the recipient entity, as defined in paragraph (1), up to 1 percent of its Realignment Reinvestment Services Account allocation.
30033.
The moneys in the Realignment Reinvestment Services Account established pursuant to subdivision (b) of Section 30031 in each county or city and county shall be expended exclusively as required by this chapter. Moneys allocated from the account shall not be transferred to, or commingled with, the moneys in any other fund in the county or city and county treasury, except that moneys may be transferred from the account to the county’s or city and county’s general fund to the extent necessary to facilitate the appropriation and expenditure of those transferred moneys in the manner required by this chapter.
SEC. 4.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SECTION 1.
Section 8585.05 of the
Government Code
is amended to read:
8585.05.
Unless the context otherwise requires, for the purposes of this article, the following definitions shall apply:
(a)“Agency” or “office” means the Office of Emergency Services.
(b)“California Emergency Management Agency” means the Office of Emergency Services.
(c)“Director” or “secretary” means the Director of Emergency Services.


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

SECTION 1.
Chapter 3.132 (commencing with Section 15820.94) is added to Part 10b of Division 3 of Title 2 of the Government Code, to read:
CHAPTER  3.132. Financing of Adult Local Criminal Justice Facilities - 2016
15820.94.
(a) For purposes of this chapter, “participating county” means a county, city and county, or regional consortium of counties, within the state that has been certified to the State Public Works Board (board) by the Board of State and Community Corrections (BSCC) as having satisfied all of the requirements set forth in this chapter for financing an adult local criminal justice facility pursuant to this chapter.
(b) (1) For purposes of this chapter, an adult local criminal justice facility may include improved housing with an emphasis on expanding program and treatment space as necessary to manage the adult offender population under the jurisdiction of the sheriff or county department of corrections, as may be applicable, consistent with the legislative intent described in Sections 17.5 and 3450 of the Penal Code, to be further defined by the BSCC in duly adopted regulations.
(2) For purposes of this chapter, an adult local criminal justice facility may also include custodial housing, reentry, program, mental health, or treatment space necessary to manage the adult offender population under the jurisdiction of the sheriff or county department of corrections, as may be applicable, consistent with the legislative intent described in Sections 17.5 and 3450 of the Penal Code, to be further defined by the BSCC in duly adopted regulations.
15820.940.
(a) The BSCC or the Department of Corrections and Rehabilitation (CDCR), a participating county, and the board are authorized to acquire, design, and construct an adult local criminal justice facility approved by the BSCC pursuant to Section 15820.945, or to acquire a site or sites owned by, or subject to a lease or option to purchase held by, a participating county. For the purposes of this chapter, acquisition shall include, but is not limited to, acquisition of completed facilities through a build-to-suit purchase. Facilities financed pursuant to this chapter may be delivered through either a design-bid-build or a design-build process. The ownership interest of a participating county in the site or sites for an adult local criminal justice facility shall be determined by the board to be adequate for purposes of its financing in order to be eligible under this chapter.
(b) Notwithstanding Section 14951, the participating county may assign an inspector during the construction of the adult local criminal justice facility.
(c) The BSCC or the CDCR, a participating county, and the board shall enter into an agreement for each adult local criminal justice facility that shall provide, at a minimum, performance expectations of the parties related to the acquisition, design, and construction, including, without limitation, renovation, of the adult local criminal justice facility; guidelines and criteria for use and application of the proceeds of revenue bonds, notes, or bond anticipation notes issued by the board to pay for the cost of the approved adult local criminal justice facility; and ongoing maintenance and staffing responsibilities for the term of the financing.
(d) The agreement shall include a provision that the participating county agrees to indemnify, defend, and hold harmless the State of California for any and all claims and losses arising out of the acquisition, design, and construction of the adult local criminal justice facility. The agreement may also contain additional terms and conditions that facilitate the financing by the board.
(e) The scope and cost of the adult local criminal justice facilities shall be subject to approval and administrative oversight by the board.
(f) For purposes of compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), the board, BSCC, and the CDCR are not a lead or responsible agency; the participating county is the lead agency.
15820.941.
Upon a participating county’s receipt of responsive construction bids or design-build proposals, or a participating county’s notification to the board of its intent to exercise a purchase option, and after the adult local criminal justice facility has been certified pursuant to Section 15820.94, the board and the BSCC or the CDCR may borrow funds for project costs from the Pooled Money Investment Account pursuant to Sections 16312 and 16313, or from any other appropriate source. In the event any of the revenue bonds, notes, or bond anticipation notes authorized by this chapter are not sold, the BSCC or the CDCR shall commit a sufficient amount of its support appropriation to repay any loans made for an approved adult local criminal justice facility.
15820.942.
(a) The board may issue up to two hundred seventy million dollars ($270,000,000) in revenue bonds, notes, or bond anticipation notes, pursuant to Chapter 5 (commencing with Section 15830), to finance the acquisition, design, and construction, including, without limitation, renovation, and a reasonable construction reserve, of approved adult local criminal justice facilities described in Section 15820.940, and any additional amount authorized under Section 15849.6 to pay for the cost of financing.
(b) Proceeds from the revenue bonds, notes, or bond anticipation notes may be used to reimburse a participating county for the costs of acquisition, design, and construction, including, without limitation, renovation, for approved adult local criminal justice facilities.
(c) Notwithstanding Section 13340, funds derived pursuant to this section and Section 15820.941 are continuously appropriated for purposes of this chapter.
15820.943.
In support of this state financing, the Legislature finds and declares all of the following:
(a) California’s current challenges in managing jail populations follow decades of overcrowded and aging jails, and piecemeal, erratic, and incomplete responses to dealing with these problems. Reversing course will require sustainable solutions that must include sound planning and implementation, and must be grounded in the principle that jail resources must be well-planned and employed efficiently and effectively to prevent overcrowding and promote public safety through the broader use of evidence-based practices and policies in the criminal justice system.
(b) California needs a long-term, statewide strategy to effectively manage its jail population and jail resources. Without an ongoing analytical framework for taking into account factors such as population growth, criminogenic needs of the current and future jail populations, crime rates, custodial housing needs, and additional changes to realignment or sentencing laws and practices, California will continue to resort to reactive, fragmentary fixes to its jail condition and capacity problems instead of being fully prepared to develop an effective and sustainable system of local custodial facilities.
(c) The county adult criminal justice system needs improved housing with an emphasis on expanding program and treatment space to manage the adult offender population under its jurisdiction.
(d) Improved county adult criminal justice housing with an emphasis on expanding program and treatment space will enhance public safety throughout the state by providing increased access to appropriate programs or treatment.
(e) By improving county adult criminal justice housing with an emphasis on expanding program and treatment space, this financing will serve a critical state purpose by promoting public safety.
(f) This purpose represents valuable consideration in exchange for this state action.
15820.944.
With the consent of the board, the BSCC or the CDCR and a participating county are authorized to enter into leases or subleases, as lessor or lessee, for any property or approved adult local criminal justice facility and are further authorized to enter into contracts or other agreements for the use, maintenance, and operation of the adult local criminal justice facility in order to facilitate the financing authorized by this chapter. In those leases, subleases, or other agreements, the participating county shall agree to indemnify, defend, and hold harmless the State of California for any and all claims and losses accruing and resulting from or arising out of the participating county’s use and occupancy of the adult local criminal justice facility.
15820.945.
(a) The BSCC shall adhere to its duly adopted regulations for the approval or disapproval of adult local criminal justice facilities. The BSCC shall also consider cost effectiveness in determining approval or disapproval. No state moneys shall be encumbered in contracts let by a participating county until one of the following occurs:
(1) Final architectural plans and specifications have been approved by the BSCC, and subsequent construction bids have been received.
(2) Documents prepared by a participating county pursuant to paragraph (1) of subdivision (a) of Section 22164 of the Public Contract Code have been approved by the BSCC, and subsequent design-build proposals have been received pursuant to that section.
(3) The participating county has notified the board of its intent to exercise an option to purchase the completed facility pursuant to Section 15820.941.
(b) The review and approval of plans, specifications, or other documents by the BSCC are for the purpose of ensuring the proper administration of moneys and the determination of whether the adult local criminal justice facility specifications comply with law and regulation. The BSCC may require changes in construction materials to enhance safety and security if materials proposed at the time of final plans and specifications are not essential and customary as used statewide for facilities of the same security level. Participating counties are responsible for the acquisition, design, construction, staffing, operation, repair, and maintenance of the adult local criminal justice facility.
(c) The BSCC shall establish minimum standards, funding schedules, and procedures, which shall take into consideration, but not be limited to, the following:
(1) Certification by a participating county of control of the adult local criminal justice facility site through either fee simple ownership of the site or comparable long-term possession of the site, and right of access to the adult local criminal justice facility sufficient to ensure undisturbed use and possession.
(2) Documentation of the need for improved adult local criminal justice facility housing with an emphasis on expanded program and treatment space. A county shall not be required to submit a new needs assessment if the county previously submitted a needs assessment for a request under the financing program described in Chapter 3.131 (commencing with Section 15820.93).
(3) A written adult local criminal justice facility proposal.
(4) Submission of a staffing plan for the adult local criminal justice facility, including operational cost projections and documentation that the adult local criminal justice facility will be able to be safely staffed and operated within 90 days of completion, as may be applicable.
(5) Submission of architectural drawings, which shall be approved by the BSCC for compliance with minimum adult detention facility standards and which shall also be approved by the State Fire Marshal for compliance with fire safety and life safety requirements.
(6) Documentation evidencing compliance with the California Environmental Quality Act (CEQA).
(7) Provisions intended to maintain the tax-exempt status of the bonds, notes, or bond anticipation notes issued by the board.
15820.946.
(a) The participating county contribution for adult local criminal justice facilities financed under this chapter shall be a minimum of 10 percent of the total project costs. The BSCC may reduce contribution requirements for participating counties with a general population below 200,000 upon petition by a participating county to the BSCC requesting a lower level of contribution.
(b) The BSCC shall determine the funding and scoring criteria consistent with the requirements of this chapter. Financing shall be awarded only to those counties that have previously received only a partial award or have never received an award from the state within the financing programs authorized in Chapters 3.11 (commencing with Section 15820.90) to 3.131 (commencing with Section 15820.93), inclusive. Notwithstanding this restriction, twenty million dollars ($20,000,000) of the amount authorized in Section 15820.942 shall be set aside and awarded to Napa County. The funding criteria shall include, as a mandatory criterion, documentation of the percentage of pretrial inmates in the county jail from January 1, 2015, to December 31, 2015, inclusive, and a description of the county’s current risk assessment based pretrial release program. Funding preference shall also be given to counties that are most prepared to proceed successfully with this financing in a timely manner. The determination of preparedness to proceed shall include the following:
(1) Counties providing a board of supervisors’ resolution authorizing an adequate amount of available matching funds to satisfy the counties’ contribution and approving the forms of the project documents deemed necessary, as identified by the board to the BSCC, to effectuate the financing authorized by this chapter, and authorizing the appropriate signatory or signatories to execute those documents at the appropriate times. The identified matching funds in the resolution shall be compatible with the state’s lease-revenue bond financing.
(2) Counties providing documentation evidencing CEQA compliance has been completed. Documentation of CEQA compliance shall be either a final Notice of Determination or a final Notice of Exemption, as appropriate, and a letter from county counsel certifying the associated statute of limitations has expired and either no challenges were filed or identifying any challenges filed and explaining how they have been resolved in a manner that allows the project to proceed as proposed.
(c) Funding consideration shall be given to counties that are seeking to replace compacted, outdated, or unsafe housing capacity that will also add treatment space or counties that are seeking to renovate existing or build new facilities that provide adequate space for the provision of treatment and rehabilitation services, including mental health treatment.
(d) A participating county may replace existing housing capacity, realizing only a minimal increase of capacity, using this financing authority if the requesting county clearly documents an existing housing capacity deficiency.
(e) A participating county with a request resulting in any increase in capacity using this financing authority shall be required to certify and covenant in writing that the county is not, and will not be, leasing housing capacity to any other public or private entity for a period of 10 years beyond the completion date of the adult local criminal justice facility.
(f) Any locked facility constructed or renovated with state funding awarded under this program shall include space to provide onsite, in-person visitation capable of meeting or surpassing the minimum number of weekly visits required by state regulations for persons detained in the facility.
(g) Any county applying for financing authority under this program shall include a description of efforts to address sexual abuse in its adult local criminal justice facility constructed or renovated pursuant to this chapter.
SEC. 2.
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.


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

SECTION 1.
Section 1720 of the Labor Code is amended to read:
1720.
(a) As used in this chapter, “public works” means:
(1) Construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part out of public funds, except work done directly by any public utility company pursuant to order of the Public Utilities Commission or other public authority. For purposes of this paragraph, “construction” includes work performed during the design and preconstruction phases of construction, including, but not limited to, inspection and land surveying work, and work performed during the postconstruction phases of construction, including, but not limited to, all cleanup work at the jobsite. For purposes of this paragraph, “installation” includes, but is not limited to, the assembly and disassembly of freestanding and affixed modular office systems.
(2) Work done for irrigation, utility, reclamation, and improvement districts, and other districts of this type. “Public work” does not include the operation of the irrigation or drainage system of any irrigation or reclamation district, except as used in Section 1778 relating to retaining wages.
(3) Street, sewer, or other improvement work done under the direction and supervision or by the authority of any officer or public body of the state, or of any political subdivision or district thereof, whether the political subdivision or district operates under a freeholder’s charter or not.
(4) The laying of carpet done under a building lease-maintenance contract and paid for out of public funds.
(5) The laying of carpet in a public building done under contract and paid for in whole or in part out of public funds.
(6) Public transportation demonstration projects authorized pursuant to Section 143 of the Streets and Highways Code.
(7) (A) Infrastructure project grants from the California Advanced Services Fund pursuant to Section 281 of the Public Utilities Code.
(B) For purposes of this paragraph, the Public Utilities Commission is not the awarding body or the body awarding the contract, as defined in Section 1722.
(b) For purposes of this section, “paid for in whole or in part out of public funds” means all of the following:
(1) The payment of money or the equivalent of money by the state or political subdivision directly to or on behalf of the public works contractor, subcontractor, or developer.
(2) Performance of construction work by the state or political subdivision in execution of the project.
(3) Transfer by the state or political subdivision of an asset of value for less than fair market price.
(4) Fees, costs, rents, insurance or bond premiums, loans, interest rates, or other obligations that would normally be required in the execution of the contract, that are paid, reduced, charged at less than fair market value, waived, or forgiven by the state or political subdivision.
(5) Money loaned by the state or political subdivision that is to be repaid on a contingent basis.
(6) Credits that are applied by the state or political subdivision against repayment obligations to the state or political subdivision.
(c) Notwithstanding subdivision (b):
(1) Private residential projects built on private property are not subject to the requirements of this chapter unless the projects are built pursuant to an agreement with a state agency, redevelopment agency, or local public housing authority.
(2) If the state or a political subdivision requires a private developer to perform construction, alteration, demolition, installation, or repair work on a public work of improvement as a condition of regulatory approval of an otherwise private development project, and the state or political subdivision contributes no more money, or the equivalent of money, to the overall project than is required to perform this public improvement work, and the state or political subdivision maintains no proprietary interest in the overall project, then only the public improvement work shall thereby become subject to this chapter.
(3) (A) If the state or a political subdivision reimburses a private developer for costs that would normally be borne by the public, or provides directly or indirectly a public subsidy to a private development project that is de minimis in the context of the project, an otherwise private development project shall not thereby become subject to the requirements of this chapter.
(B) For purposes of subparagraph (A), a public subsidy is de minimis if it is both less than two hundred fifty thousand dollars ($250,000) and less than 2 percent of the total project cost. This subparagraph shall not apply to a project that was advertised for bid, or a contract that was awarded, before July 1, 2016.
(4) The construction or rehabilitation of affordable housing units for low- or moderate-income persons pursuant to paragraph (5) or (7) of subdivision (e) of Section 33334.2 of the Health and Safety Code that are paid for solely with moneys from the Low and Moderate Income Housing Fund established pursuant to Section 33334.3 of the Health and Safety Code or that are paid for by a combination of private funds and funds available pursuant to Section 33334.2 or 33334.3 of the Health and Safety Code do not constitute a project that is paid for in whole or in part out of public funds.
(5) Unless otherwise required by a public funding program, the construction or rehabilitation of privately owned residential projects is not subject to the requirements of this chapter if one or more of the following conditions are met:
(A) The project is a self-help housing project in which no fewer than 500 hours of construction work associated with the homes are to be performed by the home buyers.
(B) The project consists of rehabilitation or expansion work associated with a facility operated on a not-for-profit basis as temporary or transitional housing for homeless persons with a total project cost of less than twenty-five thousand dollars ($25,000).
(C) Assistance is provided to a household as either mortgage assistance, downpayment assistance, or for the rehabilitation of a single-family home.
(D) The project consists of new construction, expansion, or rehabilitation work associated with a facility developed by a nonprofit organization to be operated on a not-for-profit basis to provide emergency or transitional shelter and ancillary services and assistance to homeless adults and children. The nonprofit organization operating the project shall provide, at no profit, not less than 50 percent of the total project cost from nonpublic sources, excluding real property that is transferred or leased. Total project cost includes the value of donated labor, materials, architectural, and engineering services.
(E) The public participation in the project that would otherwise meet the criteria of subdivision (b) is public funding in the form of below-market interest rate loans for a project in which occupancy of at least 40 percent of the units is restricted for at least 20 years, by deed or regulatory agreement, to individuals or families earning no more than 80 percent of the area median income.
(d) Notwithstanding any provision of this section to the contrary, the following projects shall not, solely by reason of this section, be subject to the requirements of this chapter:
(1) Qualified residential rental projects, as defined by Section 142(d) of the Internal Revenue Code, financed in whole or in part through the issuance of bonds that receive allocation of a portion of the state ceiling pursuant to Chapter 11.8 (commencing with Section 8869.80) of Division 1 of Title 2 of the Government Code on or before December 31, 2003.
(2) Single-family residential projects financed in whole or in part through the issuance of qualified mortgage revenue bonds or qualified veterans’ mortgage bonds, as defined by Section 143 of the Internal Revenue Code, or with mortgage credit certificates under a Qualified Mortgage Credit Certificate Program, as defined by Section 25 of the Internal Revenue Code, that receive allocation of a portion of the state ceiling pursuant to Chapter 11.8 (commencing with Section 8869.80) of Division 1 of Title 2 of the Government Code on or before December 31, 2003.
(3) Low-income housing projects that are allocated federal or state low-income housing tax credits pursuant to Section 42 of the Internal Revenue Code, Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division 31 of the Health and Safety Code, or Section 12206, 17058, or 23610.5 of the Revenue and Taxation Code, on or before December 31, 2003.
(e) If a statute, other than this section, or a regulation, other than a regulation adopted pursuant to this section, or an ordinance or a contract applies this chapter to a project, the exclusions set forth in subdivision (d) do not apply to that project.
(f) For purposes of this section, references to the Internal Revenue Code mean the Internal Revenue Code of 1986, as amended, and include the corresponding predecessor sections of the Internal Revenue Code of 1954, as amended.
(g) The amendments made to this section by either Chapter 938 of the Statutes of 2001 or the act adding this subdivision shall not be construed to preempt local ordinances requiring the payment of prevailing wages on housing projects.


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

SECTION 1.
The Legislature finds and declares all of the following:
(a) California has long been known as the land of opportunity, the republic of the future. But for too many of its residents the future is receding. Inequality continues to rise — even though California has one of the most progressive tax structures in the nation.
(b) Something more is needed; a new philosophy of governance that focuses on the overall progressive outcome that can be achieved through modernizing our tax system and investing in the means of upward mobility, above all job creating infrastructure and public higher education for our increasingly youthful population.
(c) Beyond these foundations, building and sustaining a middle class means new jobs with good wages. Small businesses, like plumbing contractors, auto repair shops, and restaurants that account for over 90 percent of the state’s businesses and well over a third of all jobs, are a key rung on the ladder of upward mobility. They need a tax policy that will enable them to grow and add employees.
(d) California’s two trillion dollar economy has shifted from being mainly agricultural and manufacturing in the 1950s and 1960s, when the framework of today’s tax system was set, to one based on information and services, which now accounts for 80 percent of all economic activities in the state. To achieve a future as promising as California’s past, we need a tax system that is based on this real economy of the 21st century while ensuring that new revenue is invested in strengthening the ladder of mobility for all our residents.
(e) California of the 1950s and 1960s was governed with an eye towards the future and was renowned for the opportunities that it created for its residents. California’s water system was born during that era and transformed the desert into fertile agricultural land that not only fed Californians but the world. California also constructed its freeway system to more rapidly and safely move people and goods through the state as California became the gateway to the Pacific Rim. California’s higher education system was the envy of all, reaching new heights as the University of California and the California State University grew by six and eight campuses respectively between 1958 and 1965. California’s investment in infrastructure and education paid off as agriculture, aerospace, and then technology boomed and drove California into the 21st century as the fifth largest economy in the world. As businesses thrived, they created an abundance of middle class jobs that enabled Californians to capitalize on new opportunities to better the standard of living for themselves and their families.
(f) As California’s economy thrived, however, its eye on the future wavered. By the late 1970s, state and local finances became intertwined; the state increasingly used its funds to support traditionally local operations and both state and local governments pulled back on the types of investments needed to help businesses and residents succeed. Today, Californians live with the investments made more than three generations ago. Fifty-five percent of our local streets need to be repaired or replaced. While the state’s water system received some funding in 2014, more is needed to meet the state’s demands.
(g) On a local level, 70 percent of Los Angeles’ water infrastructure is composed of cast-iron pipes, most of which was laid during the early half of the 20th century.
(h) Our financial commitment to kindergarten and grades 1 to 12, inclusive, education has waned. Average Daily Attendance grew anemically by 0.06 percent annually between 2007 and 2011. By 2011, California ranked 43rd in per pupil spending and California’s ADA was $2,580 less than the United States average — the largest gap in 40 years.
(i) California’s commitment to higher education has also receded. In addition to opening professional and economic doorways for students, California’s higher education system is one of our most important economic engines. With almost 60 faculty and researchers who have won the Nobel prize, the University of California has over 3,200 active patents and contributes $33 billion to the California economy annually. The California State University generates an additional $17 billion in economic activity and supports 150,000 jobs in the state. Despite its proven value, California has not been able to maintain higher education accessibility for its residents. In the past 20 years, University of California fees have increased by 434 percent and California State University fees by 300 percent. Moreover, California community colleges, the largest provider of workforce training in the nation, increased fees by 130 percent between 2008 and 2012, leading to over a 20 percent decline in enrollment.
(j) The lack of investment in infrastructure and education has diminished opportunities for Californians and continues to fuel the growing income inequality in California. Since 1970, the poorest 20 percent of Californians have seen their household income grow by just 3.1 percent while the income of the richest 20 percent has climbed 74.6 percent. Since 1987, 71.3 percent of all the gains generated by California’s economy have gone to the state’s wealthiest 10 percent. Moreover, today, California accounts for three of the 10 American cities with the greatest disparities in wealth—San Francisco, Oakland, and Los Angeles.
(k) (1) The Upward Mobility Act would help ensure California’s residents and businesses can thrive in the 21st century global economy by increasing funding by $10 billion dollars for the following programs, as the revenue becomes available:
(A) Three billion dollars to K-14 education. Investing in its residents through education is the foundation on which California has always built its economy. This measure would provide new funds to help rebuild California’s education system at every level. The new revenues will help to rebuild classrooms and be available to help protect classroom spending from pending pension fund demands.
(B) Two billion dollars to the University of California and the California State University. Similarly, the measure would restore investment in California’s prized higher education system, essential to upward mobility for Californians. Revenues would be split evenly between the University of California and the California State University.
(C) Three billion dollars to local governments. Investing in local governments will more closely connect Californians to the government spending that occurs on their behalf and support the new realignment burdens on local government. Moreover, additional guaranteed funding to provide additional public safety, parks, libraries, or local development, will allow local governments to best meet the specific needs of their particular communities.
(D) Two billion
dollars
for a new earned income tax credit for low-income families. The Upward Mobility Act would establish a refundable earned income tax credit to help low-income families offset the burden of the proposed sales and use tax on services.
(E) Small business and minimum wage relief. This measure would enhance the state’s business climate, create jobs, and incentivize entrepreneurship by evaluating the current corporate income tax to determine whether it is meeting its intended purpose while at the same time linking changes to a more reasonable minimum wage.
(2) Because this funding would be guaranteed, school districts, community colleges, the California State University, the University of California, and local governments would be able to securitize the revenues to make essential long-term investments, just as is the case with real property taxes.
(l) The Upward Mobility Act will fund these programs to enable the upward mobility of our residents and to help make California’s businesses more competitive by modernizing our tax code. The underlying problem is, while California’s economy has evolved, its tax system failed to keep up with the times. Over the past 60 years, California has moved from an agriculture and manufacturing based economy to a services based economy. As a result, state tax revenues have become less reliant on revenues derived from the Sales and Use Tax on goods and more reliant on revenues derived from the Personal Income Tax. In 1950, the Sales and Use Tax comprised 61 percent of all state revenues; today, it accounts for about 30 percent. The Personal Income Tax accounted for 12 percent of total state revenues in 1950; today, it accounts for more than 60 percent.
(m) Moreover, California’s General Fund tax collections are heavily dependent on the earnings of its top earners. This has led to dramatic revenue swings year over year. During the dot-com economic boom of the
1950s
1990s
through the early part of the 21st century, state revenues soared by as much as 20 percent in a single year. However, as personal incomes tumbled during the Great Recession, state revenues plummeted disproportionately. These swings in revenue have led to the suffering of California’s residents. Essential services, such as health care and child care for low-income families, were cut at a time when they were needed most. In addition, the state cut billions of dollars to education, including adult vocational and literacy education, which could have helped low-income families recover from the recession. Relying on the wealthiest taxpayers to support California’s needs is outdated and dangerous fiscal policy. Not only does it increase the uncertainty of tax collections, but there is evidence that California’s high tax rates may be driving high income earners out of the state, which only deepens revenue shortfalls.
(n) The economy has shifted away from the production of goods to services. Since 1966 sales of taxable goods, as a share of the economy, have been cut in half. Today services represent 80 percent of California’s economy. Expanding the Sales and Use Tax to cover services removes a significant inequitable aspect of the tax code, implicitly favoring consumer spending on services over goods. Currently the sale of a TurboTax software disk is taxed, whereas a consumer who instead paid H&R Block would escape taxation. In essence, those who produce goods such as software or machinery are supporting those who produce services and information. Taxing only goods and not services when our economy has been so fundamentally transformed makes no sense and is manifestly unfair. This has to change.
(o) The Upward Mobility Act seeks to make three broad changes to the tax code:
(1) Broaden the tax base by imposing a sales tax on services to increase revenues. Local jurisdictions would not be authorized to increase sales tax on services, as they now can do with the sales tax on goods. Though the new revenues would be collected by the state, the ownership of those funds allocated to local government under this measure will be controlled by local government using traditional allocation mechanisms. Health care services and education services would be exempted from the tax, and very small businesses with under $100,000 gross sales would be exempted from the sales tax on services.
(2) Enhance the state’s business climate and incentivize entrepreneurship and business creation by evaluating the corporate income tax to determine whether it is meeting its intended purposes, including whether it is
born
borne
equitably among California’s businesses and what impact it has on the business climate, while at the same time linking changes to a more reasonable minimum wage.
(3) Examine the impacts of lowering and simplifying the
Personal Income Tax
personal income tax
while maintaining progressivity. The measure’s goal is to reduce
the income tax rates imposed under the Personal Income Tax
personal income tax rates
for low-and middle-class-income households so that families earning $100,000 pay only $1,000. The income tax rate for top earners may also be reduced in a manner that balances fairness with mitigating adverse impact to both state revenues and competitiveness. The obligation of top earners with regard to other tax obligations for top earners, including Proposition 63, would remain intact.
(p) In order to ensure fiscal responsibility, the Upward Mobility Act’s revenue reduction provisions would be phased in only when it is clear that new revenues are sufficient to replace any revisions to the personal income tax and corporate tax.
(q) As the revenues secured by Proposition 30 expire, California policy decisionmakers must determine new long term ways to provide for state residents. The Upward Mobility Act will increase opportunities for California’s businesses and create an upward mobility ladder for California residents. Moreover, the Upward Mobility Act will realign the state’s outdated tax code with the realities of California’s 21st century economy.
SEC. 2.
Chapter 3.8 (commencing with Section 6305) is added to Part 1 of Division 2 of the Revenue and Taxation Code, to read:
CHAPTER  3.8. Services
6305.
In addition to the taxes imposed by this part, for the privilege of selling services at retail a tax is hereby imposed upon all retailers at the rate of ____ percent of the gross receipts of any retailer from the sale of all services sold at retail in this state on or after January 1, ____.
6306.
In addition to the taxes imposed by this part an excise tax is hereby imposed on the receipt of the benefit of the service in this state of services on or after January 1, ____, at the rate specified in Section 6305 of the sales price of the services.


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

SECTION 1.
The Legislature finds and declares as follows:
(a) More than $40 million of funding for the training of California’s primary care physicians is expiring in 2016.
(b) Each year in California, only 368 slots are available to the thousands of medical students seeking to train in family medicine. If the funding is not replaced, 158 of those slots will be lost, creating a terrible deficit of primary care physicians in California’s underserved communities.
(c) Only 36 percent of California’s active patient care physicians practice primary care. Twenty-three of California’s 58 counties fall below the minimum required primary care physician to population ratio.
(d) As of 2010, California needed an estimated additional 8,243 primary care physicians by 2030 to prevent projected shortages in the state, which is about 412 new primary care physicians per year.
(e) More than 32 percent of California’s practicing primary care physicians are 60 years of age or older – only four other states have a larger percentage of soon-to-retire physicians.
(f) States with higher ratios of primary care physicians to population have better health outcomes, including decreased mortality from cancer, heart disease, and stroke.
(g) The Song-Brown program provides an existing state infrastructure to support an increase in the number of primary care providers serving California’s underserved populations. By investing in Song-Brown, California will realize an immediate return on investment as each primary care resident provides an average of 600 additional patient visits per physician per year during training alone.
(h) California’s long-term workforce will also grow significantly as the vast majority of physicians who train in a region stay there to practice. California leads all fifty states in the percentage of residency program graduates who stay in the state in which they are trained.
SEC. 2.
Notwithstanding Section 13340 of the Government Code, there is hereby continuously appropriated from the General Fund the sum of three hundred million dollars ($300,000,000) to the Director of Statewide Health Planning and Development, for the purpose of funding new and existing graduate medical education physician residency positions, and supporting training faculty, pursuant to the Song-Brown Health Care Workforce Training Act (Article 1 (commencing with Section 128200) of Chapter 4 of Part 3 of Division 107 of the Health and Safety Code). The moneys shall be expended as follows:
(a) The sum of one hundred million dollars ($100,000,000) shall be expended in the 2016–17 fiscal year.
(b) The sum of one hundred million dollars ($100,000,000) shall be expended in the 2017–18 fiscal year.
(c) The sum of one hundred million dollars ($100,000,000) shall be expended in the 2018–19 fiscal year.
SECTION 1.
Article 7 (commencing with Section 128590) is added to Chapter 5 of Part 3 of Division 107 of the
Health and Safety Code
, to read:
7.
California Medical Residency Training Program
128590.
As used in this article:
(a)“Director” means the Director of Statewide Health Planning and Development.
(b)“Foundation” means the Health Professions Education Foundation.
(c)“Fund” means the Medical Residency Training Fund.
(d)“Office” means the Office of Statewide Health Planning and Development.
(e)“Panel” means the Medical Residency Training Advisory Panel, established pursuant to Section 128591.
(f)“Primary care” means the medical practice areas of family medicine, general surgery, internal medicine, obstetrics and gynecology, pediatrics, psychiatry, and related specialties and subspecialties as the office deems appropriate.
(g)“Residency position” means a graduate medical education residency position in the field of primary care.
128591.
(a)(1)There is established within the foundation the Medical Residency Training Advisory Panel.
(2)The panel shall consist of 13 members. Seven members shall be appointed by the Governor, one member shall be appointed by the Speaker of the Assembly, one member shall be appointed by the Senate Committee on Rules, two members of the Medical Board of California shall be appointed by the Medical Board of California, and two members of the Osteopathic Medical Board of California shall be appointed by the Osteopathic Medical Board of California.
(3)The members of the panel appointed by the Governor, the Speaker of the Assembly, and the Senate Committee on Rules shall consist of representatives of designated and nondesignated public hospitals, private hospitals, community clinics, public and private health insurance providers, the pharmaceutical industry, associations of health care practitioners, and other appropriate members of health or related professions.
(4)All persons considered for appointment shall have an interest in increasing the number of medical residencies in the state, an interest in increasing access to health care in underserved areas of California, and the ability and desire to solicit funds for the purposes of this article, as determined by the appointing power.
(b)The Governor shall appoint the president of the panel from among those members appointed by the Governor, the Speaker of the Assembly, the Senate Committee on Rules, the Medical Board of California, and the Osteopathic Medical Board of California.
(c)(1)Of the members of the panel first appointed by the Governor, three members shall be appointed to serve a one-year term, three members shall be appointed to serve a two-year term, and one member shall be appointed to serve a three-year term.
(2)Each member of the panel first appointed by the Speaker of the Assembly and the Senate Committee on Rules shall be appointed to serve a three-year term.
(3)Each member of the panel appointed by the Medical Board of California and the Osteopathic Medical Board of California shall be appointed to serve a four-year term.
(4)Upon the expiration of the initial appointments to the panel by the Governor, the Speaker of the Assembly, the Senate Committee on Rules, the Medical Board of California, and the Osteopathic Medical Board of California, each member shall be appointed to serve a four-year term.
(d)(1)Members of the panel appointed by the Governor, the Speaker of the Assembly, and the Senate Committee on Rules shall serve without compensation, but shall be reimbursed for any actual and necessary expenses incurred in connection with their duties as members of the panel.
(2)The members appointed by the Medical Board of California and the Osteopathic Medical Board of California shall serve without compensation, but shall be reimbursed by the Medical Board of California and the Osteopathic Medical Board of California, respectively, for any actual and necessary expenses incurred in connection with their duties as members of the panel.
(e)Notwithstanding any law relating to incompatible activities, no member of the panel shall be considered to be engaged in activities inconsistent and incompatible with his or her duties solely as a result of membership on the Medical Board of California or the Osteopathic Medical Board of California.
(f)The panel shall be subject to the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 2 of the Corporations Code), except that if there is a conflict with this article and the Nonprofit Public Benefit Corporation Law (Part 2 (commencing with Section 5110) of Division 2 of Title 2 of the Corporations Code), this article shall prevail.
128592.
The panel shall do all of the following:
(a)Solicit and accept funds from business, industry, foundations, and other private or public sources for the purpose of establishing and funding new residency positions in areas of the state described in subdivision (c).
(b)Encourage public and private sector institutions, including hospitals, colleges, universities, community clinics, and other health agencies and organizations to identify and provide locations for the establishment of new residency positions in areas of the state described in subdivision (c). The panel shall solicit proposals for medical residency programs, as described in subdivision (c), and shall provide to the foundation a copy of all proposals it receives.
(c)Upon the sufficient solicitation of funds and at the panel’s discretion, recommend to the foundation the establishment of new residency positions. A recommendation shall include all pertinent information required to enter into the necessary contracts to establish the residency positions. The panel shall only approve and recommend to the foundation proposals that would establish residency positions that will serve in any of the following medical service areas:
(1)A service area that is designated as a primary care shortage area by the office.
(2)A service area that is designated as a health professional shortage area for primary care, by either population or geographic designation, by the Health Resources and Services Administration of the United States Department of Health and Human Services.
(3)A service area that is designated as a medically underserved area or medically underserved population by the Health Resources and Services Administration of the United States Department of Health and Human Services.
(d)Upon foundation approval of a recommendation, deposit into the fund necessary moneys required to establish and fund the residency position.
(e)Recommend to the director that a portion of the funds solicited from the private sector be used for the administrative requirements of the panel and the foundation.
(f)Prepare and submit an annual report to the Legislature documenting the amount of money solicited, the amount of money deposited by the panel into the fund, the recommendations for the location and fields of practice of residency positions, total expenditures for the year, and prospective fundraising goals.
128593.
The foundation shall do all of the following:
(a)Provide technical and staff support to the panel in meeting all of its responsibilities.
(b)Upon receipt of a recommendation made by the panel pursuant to subdivision (c) of Section 128592, approve the recommendation if the recommendation fulfills the requirements of subdivision (c) of Section 128592 and the recommendation fulfills the goals of this article. Upon sufficient funds being available, an approval shall be sent to the office for implementation pursuant to Section 128594.
128594.
The office shall do all of the following:
(a)Establish a uniform process by which the panel may solicit proposals from public and private sector institutions, including hospitals, colleges, universities, community clinics, and other health agencies and organizations that train primary care residents. The office shall require that the proposals contain all necessary and pertinent information, including, but not limited to, all of the following:
(1)The location of the proposed residency position.
(2)The medical practice area of the proposed residency position.
(3)Information that demonstrates the area’s need for the proposed residency position and for additional primary care practitioners.
(4)The amount of funding required to establish and operate the residency position.
(b)Enter into contracts with public and private sector institutions, including hospitals, colleges, universities, community clinics, and other health agencies and organizations in order to fund and establish residency positions at, or in association with, these institutions.
(c)Ensure that the residency position has been, or will be, approved by the Accreditation Council for Graduate Medical Education.
(d)Provide all of the following information to the panel and the foundation as requested:
(1)The areas of the state that are deficient in primary care services.
(2)The areas of the state that have the highest number of Medi-Cal enrollees and persons eligible to enroll in Medi-Cal, by proportion of population.
(3)Other information relevant to assist the panel and the foundation in making recommendations on possible locations for new residency positions.
(e)Monitor the residencies established pursuant to this article.
(f)(1)Prepare and submit an annual report to the panel, the foundation, and the Legislature documenting the amount of money contributed to the fund by the panel, the amount of money expended from the fund, the purposes of those expenditures, the number and location of residency positions established and funded, and recommendations for the location of future residency positions.
(2)The report pursuant to paragraph (1) shall be made to the Legislature pursuant to Section 9795 of the Government Code.
128595.
(a)The Medical Residency Training Fund is hereby created within the State Treasury.
(b)The primary purpose of the fund is to allocate funding for new residency positions throughout the state. Money in the fund shall also be used to pay for the cost of administering the goals of the panel and the foundation as established by this article, and for any other purpose authorized by this article.
(c)The level of expenditure by the office for the administrative support of the panel and the foundation is subject to review and approval annually through the state budget process.
(d)In addition to funds raised by the panel, the office and the foundation may solicit and accept public and private donations to be deposited into the fund. All money in the fund is continuously appropriated to the office for the purposes of this article. The office shall manage this fund prudently in accordance with applicable laws.
128596.
Any regulations the office adopts to implement this article shall be adopted as emergency regulations in accordance with Section 11346.1 of the Government Code, except that the regulations shall be exempt from the requirements of subdivisions (e), (f), and (g) of that section. The regulations shall be deemed to be emergency regulations for the purposes of Section 11346.1 of the Government Code.
128597.
Notwithstanding any other law, the office may exempt from public disclosure any document in the possession of the office that pertains to a donation made pursuant to this article if the donor has requested anonymity.
128598.
(a)The Governor may include in the annual budget proposal an amount, as he or she deems reasonable, to be appropriated to the office to be used as provided in this article.
(b)If the Legislature appropriates money for purposes of this article, the money shall be appropriated to the office, which shall hold the money for distribution to the fund.
(c)Funds appropriated to the office shall be paid into the fund, upon request of the panel, in an amount matching the amount deposited into the fund by the panel or by the foundation and office pursuant to subdivision (d) of Section 128595 for the purposes of this article. Any money that was appropriated to the office and that has not been distributed to the fund at the end of each fiscal year shall be returned to the General Fund.
SEC. 2.
The Legislature finds and declares that Section 1 of this act, which adds Article 7 (commencing with Section 128590) to Chapter 5 of Part 3 of Division 107 of the Health and Safety Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
The need to protect individual privacy of donations made by a donor to fund new medical residency positions in underserved areas of the state outweighs the interest in the public disclosure of that information.