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

SECTION 1.
Section 1185 of the Civil Code is amended to read:
1185.
(a) The acknowledgment of an instrument shall not be taken unless the officer taking it has satisfactory evidence that the person making the acknowledgment is the individual who is described in and who executed the instrument.
(b) For purposes of this section, “satisfactory evidence” means the absence of information, evidence, or other circumstances that would lead a reasonable person to believe that the person making the acknowledgment is not the individual he or she claims to be and any one of the following:
(1) (A) The oath or affirmation of a credible witness personally known to the officer, whose identity is proven to the officer upon presentation of a document satisfying the requirements of paragraph (3) or (4), that the person making the acknowledgment is personally known to the witness and that each of the following are true:
(i) The person making the acknowledgment is the person named in the document.
(ii) The person making the acknowledgment is personally known to the witness.
(iii) That it is the reasonable belief of the witness that the circumstances of the person making the acknowledgment are such that it would be very difficult or impossible for that person to obtain another form of identification.
(iv) The person making the acknowledgment does not possess any of the identification documents named in paragraphs (3) and (4).
(v) The witness does not have a financial interest in the document being acknowledged and is not named in the document.
(B) A notary public who violates this section by failing to obtain the satisfactory evidence required by subparagraph (A) shall be subject to a civil penalty not exceeding ten thousand dollars ($10,000). An action to impose this civil penalty may be brought by the Secretary of State in an administrative proceeding or a public prosecutor in superior court, and shall be enforced as a civil judgment. A public prosecutor shall inform the secretary of any civil penalty imposed under this subparagraph.
(2) The oath or affirmation under penalty of perjury of two credible witnesses, whose identities are proven to the officer upon the presentation of a document satisfying the requirements of paragraph (3) or (4), that each statement in paragraph (1) is true.
(3) Reasonable reliance on the presentation to the officer of any one of the following, if the document or other form of identification is current or has been issued within five years:
(A) An identification card or driver’s license issued by the Department of Motor Vehicles.
(B) A passport issued by the Department of State of the United States.
(C) An inmate identification card issued by the Department of Corrections and Rehabilitation, if the inmate is in custody in prison.
(D) Any form of inmate identification issued by a sheriff’s department, if the inmate is in custody in a local detention facility.
(4) Reasonable reliance on the presentation of any one of the following, provided that a document specified in subparagraphs (A) to (E), inclusive, shall either be current or have been issued within five years and shall contain a photograph and description of the person named on it, shall be signed by the person, and shall bear a serial or other identifying number:
(A) A valid consular identification document issued by a consulate from the applicant’s country of citizenship, or a valid passport from the applicant’s country of citizenship.
(B) A driver’s license issued by a state other than California or by a Canadian or Mexican public agency authorized to issue driver’s licenses.
(C) An identification card issued by a state other than California.
(D) An identification card issued by any branch of the Armed Forces of the United States.
(E) An employee identification card issued by an agency or office of the State of California, or by an agency or office of a city, county, or city and county in this state.
(c) An officer who has taken an acknowledgment pursuant to this section shall be presumed to have operated in accordance with the provisions of law.
(d) A party who files an action for damages based on the failure of the officer to establish the proper identity of the person making the acknowledgment shall have the burden of proof in establishing the negligence or misconduct of the officer.
(e) A person convicted of perjury under this section shall forfeit any financial interest in the document.
SEC. 1.5.
Section 1185 of the Civil Code is amended to read:
1185.
(a) The acknowledgment of an instrument shall not be taken unless the officer taking it has satisfactory evidence that the person making the acknowledgment is the individual who is described in and who executed the instrument.
(b) For purposes of this section, “satisfactory evidence” means the absence of information, evidence, or other circumstances that would lead a reasonable person to believe that the person making the acknowledgment is not the individual he or she claims to be and any one of the following:
(1) (A) The oath or affirmation of a credible witness personally known to the officer, whose identity is proven to the officer upon presentation of a document satisfying the requirements of paragraph (3) or (4), that the person making the acknowledgment is personally known to the witness and that each of the following are true:
(i) The person making the acknowledgment is the person named in the document.
(ii) The person making the acknowledgment is personally known to the witness.
(iii) That it is the reasonable belief of the witness that the circumstances of the person making the acknowledgment are such that it would be very difficult or impossible for that person to obtain another form of identification.
(iv) The person making the acknowledgment does not possess any of the identification documents named in paragraphs (3) and (4).
(v) The witness does not have a financial interest in the document being acknowledged and is not named in the document.
(B) A notary public who violates this section by failing to obtain the satisfactory evidence required by subparagraph (A) shall be subject to a civil penalty not exceeding ten thousand dollars ($10,000). An action to impose this civil penalty may be brought by the Secretary of State in an administrative proceeding or a public prosecutor in superior court, and shall be enforced as a civil judgment. A public prosecutor shall inform the secretary of any civil penalty imposed under this subparagraph.
(2) The oath or affirmation under penalty of perjury of two credible witnesses, whose identities are proven to the officer upon the presentation of a document satisfying the requirements of paragraph (3) or (4), that each statement in paragraph (1) is true.
(3) Reasonable reliance on the presentation to the officer of any one of the following, if the document or other form of identification is current or has been issued within five years:
(A) An identification card or driver’s license issued by the Department of Motor Vehicles.
(B) A passport issued by the Department of State of the United States.
(C) An inmate identification card issued by the Department of Corrections and Rehabilitation, if the inmate is in custody in prison.
(D) Any form of inmate identification issued by a sheriff’s department, if the inmate is in custody in a local detention facility.
(4) Reasonable reliance on the presentation of any one of the following, provided that a document specified in subparagraphs (A) to (F), inclusive, shall either be current or have been issued within five years and shall contain a photograph and description of the person named on it, shall be signed by the person, and shall bear a serial or other identifying number:
(A) A valid consular identification document issued by a consulate from the applicant’s country of citizenship, or a valid passport from the applicant’s country of citizenship.
(B) A driver’s license issued by a state other than California or by a Canadian or Mexican public agency authorized to issue driver’s licenses.
(C) An identification card issued by a state other than California.
(D) An identification card issued by any branch of the Armed Forces of the United States.
(E) An employee identification card issued by an agency or office of the State of California, or by an agency or office of a city, county, or city and county in this state.
(F) An identification card issued by a federally recognized tribal government.
(c) An officer who has taken an acknowledgment pursuant to this section shall be presumed to have operated in accordance with the provisions of law.
(d) A party who files an action for damages based on the failure of the officer to establish the proper identity of the person making the acknowledgment shall have the burden of proof in establishing the negligence or misconduct of the officer.
(e) A person convicted of perjury under this section shall forfeit any financial interest in the document.
SEC. 2.
Section 1.5 of this bill incorporates amendments to Section 1185 of the Civil Code proposed by both this bill and Senate Bill 997. It shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2017, (2) each bill amends Section 1185 of the Civil Code, and (3) this bill is enacted after Senate Bill 997, in which case Section 1 of this bill shall not become operative.


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

SECTION 1.
Article 1 (commencing with Section 18701) is added to Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, to read:
Article  1. State Children’s Trust Fund
18701.
(a) An individual may designate on the tax return that a contribution in excess of the tax liability, if any, be made to the State Children’s Trust Fund established by Section 18969 of the Welfare and Institutions Code.
(b) The contributions shall be in full dollar amounts and may be made individually by each signatory on a joint return.
(c) A designation under subdivision (a) shall be made for a taxable year on the original return for that taxable year, and once made shall be irrevocable. If payments and credits reported on the return, together with any other credits associated with the individual’s account, do not exceed the individual’s tax liability, the return shall be treated as though no designation has been made.
(d) If an individual designates a contribution to more than one account or fund listed on the tax return, and the amount available is insufficient to satisfy the total amount designated, the contribution shall be allocated among the designees on a pro rata basis.
(e) The Franchise Tax Board shall revise the form of the return to include a space labeled “State Children’s Trust Fund for the Prevention of Child Abuse” to allow for the designation permitted under subdivision (a). The form shall also include in the instructions information that the contribution may be in the amount of one dollar ($1) or more and that the contribution shall be used to support child abuse prevention programs with demonstrated success, public education efforts to change adult behaviors and educate parents, innovative research to identify best practices, and the replication of those practices to prevent child abuse and neglect.
(f) Notwithstanding any other law, a voluntary contribution designation for the State Children’s Trust Fund shall not be added on the tax return until another voluntary contribution designation is removed or space is available, whichever occurs first.
(g) A deduction shall be allowed under Article 6 (commencing with Section 17201) of Chapter 3 of Part 10 for a contribution made pursuant to subdivision (a).
18702.
The Franchise Tax Board shall notify the Controller of both the amount of money paid by taxpayers in excess of their tax liability and the amount of refund money that taxpayers have designated pursuant to Section 18701 to be transferred to the State Children’s Trust Fund, as established by Section 18969 of the Welfare and Institutions Code. The Controller shall transfer from the Personal Income Tax Fund to the State Children’s Trust Fund an amount not in excess of the sum of the amounts designated by individuals pursuant to Section 18701 for payment into that fund.
18703.
All money transferred to the State Children’s Trust Fund pursuant to this article, upon appropriation by the Legislature, shall be allocated as follows:
(a) To the Franchise Tax Board and the Controller for reimbursement of all costs incurred by the Franchise Tax Board and the Controller in connection with their duties under this article.
(b) Up to 10 percent of all moneys appropriated pursuant to this article, to the State Department of Social Services to pursue public education about child abuse and neglect prevention and early intervention in order to encourage voluntary contributions to the State Children’s Trust Fund. The State Department of Social Services may delegate these duties by entering into a contract with a designated private entity that has demonstrated experience in education and promotion.
(c) The remainder to the State Department of Social Services for innovative child abuse and neglect prevention and intervention programs operated by private nonprofit organizations or public institutions of higher education with recognized expertise in fields related to child welfare and for evaluation, research, or dissemination of information concerning existing program models for the purpose of replication of successful models as specified in Article 5 (commencing with Section 18965) of Chapter 11 of Part 6 of Division 9 of the Welfare and Institutions Code.
18704.
It is the intent of the Legislature that this article creates an additional source of funding for a specified purpose. The funds generated by this article shall not be used in place of funds from other sources that are available to the State Children’s Trust Fund.
18705.
(a) Except as otherwise provided in paragraph (2) of subdivision (b), this article shall remain in effect only until January 1 of the fifth taxable year following the first appearance of the State Children’s Trust Fund on the personal income tax return, and is repealed as of December 1 of that year.
(b) (1) By September 1 of the second calendar year and each subsequent calendar year that the State Children’s Trust Fund appears on the tax return, the Franchise Tax Board shall do all of the following:
(A) Determine the minimum contribution amount required to be received during the next calendar year for the fund to appear on the tax return for the taxable year that includes that next calendar year.
(B) Determine whether the amount of contributions estimated to be received during the calendar year will equal or exceed the minimum contribution amount determined by the Franchise Tax Board for the calendar year pursuant to subparagraph (A). The Franchise Tax Board shall estimate the amount of contributions to be received by using the actual amounts received and an estimate of the contributions that will be received by the end of that calendar year.
(2) If the Franchise Tax Board determines that the amount of the contributions estimated to be received during a calendar year will not at least equal the minimum contribution amount for the calendar year, this article is inoperative with respect to taxable years beginning on or after January 1 of that calendar year, and shall be repealed on December 1 of that calendar year.
(3) For purposes of this section, the minimum contribution amount for a calendar year means two hundred fifty thousand dollars ($250,000) for the second calendar year after the first appearance of the State Children’s Trust Fund on the personal income tax return or the minimum contribution amount as adjusted pursuant to subdivision (c).
(c) For each calendar year, beginning with the third calendar year after the first appearance of the State Children’s Trust Fund on the personal income tax return, the Franchise Tax Board shall adjust, on or before September 1 of that calendar year, the minimum contribution amount specified in subdivision (b) as follows:
(1) The minimum contribution amount for the calendar year shall be an amount equal to the product of the minimum contribution amount for the prior calendar year multiplied by the inflation factor adjustment as specified in subparagraph (A) of paragraph (2) of subdivision (h) of Section 17041, rounded off to the nearest dollar.
(2) The inflation factor adjustment used for the calendar year shall be based on the figures for the percentage change in the California Consumer Price Index for all items received on or before August 1 of the calendar year pursuant to paragraph (1) of subdivision (h) of Section 17041.
(d) Notwithstanding the repeal of this article, any contribution amounts designated pursuant to this article prior to its repeal shall continue to be transferred and disbursed in accordance with this article as in effect immediately prior to that repeal.
SEC. 2.
Section 18969 of the Welfare and Institutions Code is amended to read:
18969.
(a) There is hereby created in the State Treasury a fund which shall be known as the State Children’s Trust Fund. The fund shall consist of funds received from a county pursuant to Section 18968, funds collected by the state and transferred to the fund pursuant to subdivision (b) of Section 103625 of the Health and Safety Code and Article 1 (commencing with Section 18701) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, grants, gifts, or bequests made to the state from private sources to be used for innovative and distinctive child abuse and neglect prevention and intervention projects, and money appropriated to the fund for this purpose by the Legislature. The State Registrar may retain a percentage of the fees collected pursuant to Section 103625 of the Health and Safety Code, not to exceed 10 percent, in order to defray the costs of collection.
(b) Money in the State Children’s Trust Fund, upon appropriation by the Legislature, shall be allocated to the State Department of Social Services for the purpose of funding child abuse and neglect prevention and intervention programs. The department may not supplant any federal, state, or county funds with any funds made available through the State Children’s Trust Fund.
(c) The department may establish positions as needed for the purpose of implementing and administering child abuse and neglect prevention and intervention programs that are funded by the State Children’s Trust Fund. However, the department shall use no more than 5 percent of the funds appropriated pursuant to this section, exclusive of the funds transferred to the State Children’s Trust Fund pursuant to Article 1 (commencing with Section 18701) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, for administrative costs. Administrative costs do not include the moneys allocated to the department to pursue public education about child abuse and neglect prevention and early intervention as described in subdivision (b) of Section 18703 of the Revenue and Taxation Code.
(d) No State Children’s Trust Fund money shall be used to supplant state General Fund money for any purpose.
(e) It is the intent of the Legislature that the State Children’s Trust Fund provide for all of the following:
(1) The development of a public-private partnership by encouraging consistent outreach to the private foundation and corporate community.
(2) Funds for large-scale dissemination of information that will promote public awareness regarding the nature and incidence of child abuse and the availability of services for intervention. These public awareness activities shall include, but not be limited to, the production of public service announcements, well-designed posters, pamphlets, booklets, videos, and other media tools.
(3) Research and demonstration projects that explore the nature and incidence and the development of long-term solutions to the problem of child abuse.
(4) The development of a mechanism to provide ongoing public awareness through activities that will promote the charitable tax deduction for the trust fund and seek continued contributions. These activities may include convening a philanthropic roundtable, developing literature for use by the State Bar of California for dissemination, and whatever other activities are deemed necessary and appropriate to promote the trust fund.


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

SECTION 1.
The Legislature finds and declares all of the following:
(a) Commute patterns throughout northern California, and in particular through the Altamont Pass corridor, traverse the boundaries of traditional metropolitan planning agencies. The Altamont Pass corridor, located in the center of northern California’s megaregion, is the gateway to the Tri—Valley—a vital node in the bay area’s economic ecosystem and a key bay area transportation route. Strategic and planned interregional mobility is essential to sustained economic vitality.
(b) Connecting the Bay Area Rapid Transit District’s rapid transit system and the Altamont Corridor Express in Livermore, as recommended by the Metropolitan Transportation Commission’s regional rail plan, would increase interregional mobility, providing much-needed highway capacity for expanded goods movement to the bay area’s five seaports. It would also relieve pressure on Interstate 580 and other transportation systems, given the exponential population growth in the central valley.
(c) The Bay Area Rapid Transit District has stated its priority is to operate and maintain its existing core commuter rail system; expansion is not a priority for the Bay Area Rapid Transit District. Recent rail expansions in other parts of the state have been successfully implemented by single purpose agencies such as the Metro Gold Line Foothill Extension Construction Authority and the Santa Clara Valley Transportation Authority.
(d) The Altamont Pass Regional Rail Authority is needed to connect the Bay Area Rapid Transit District’s rapid transit system and the Altamont Corridor Express in Tri-Valley and would be responsive to local needs and issues by including local stakeholders in land use and transit planning decisions.
(e) Consistent with the Bay Area Regional Rail Plan adopted by the Metropolitan Transportation Commission (Resolution 3826), the heavy rail connection between the Bay Area Rapid Transit District’s rapid transit system and the Altamont Corridor Express is a matter of state interest, and all planning, analysis, alternatives, and mitigations for projects undertaken by the Altamont Pass Regional Rail Authority should be consistent with that state interest.
SEC. 2.
It is the intent of the Legislature to establish the Altamont Pass Regional Rail Authority to plan and deliver a cost effective and responsive rail extension that connects the Bay Area Rapid Transit District’s rapid transit system and the Altamont Corridor Express in the Tri-Valley, within the City of Livermore, to address regional economic and transportation challenges.
SEC. 3.
Chapter 8 (commencing with Section 132651) is added to Division 12.7 of the Public Utilities Code, to read:
CHAPTER  8. Altamont Pass Regional Rail Authority
132651.
As used in this chapter, the following terms have the following meanings:
(a) “Authority” means the Altamont Pass Regional Rail Authority created under this chapter.
(b) “Bay Area Rapid Transit” means the Bay Area Rapid Transit District’s rapid transit system.
(c) “Board” means the governing board of the authority.
(d) “Connection” means an interregional rail connection between Bay Area Rapid Transit and the Altamont Corridor Express in the Tri-Valley, within the City of Livermore.
(e) “Phase 1 Project” means the first phase of the connection, which will extend Bay Area Rapid Transit along Interstate 580 to a new station in the vicinity of the Isabel Avenue interchange in the City of Livermore.
132652.
The authority is hereby established for purposes of planning and delivering a cost-effective and responsive connection that meets the goals and objectives of the community.
132653.
By December 1, 2017, the board shall publish a detailed management, finance, and implementation plan relating to the connection.
132655.
The governing board of the authority shall be composed of one representative from each of the following entities to be appointed by the governing board, mayor, or supervisor of each entity:
(a) The Altamont Corridor Express.
(b) The Bay Area Rapid Transit District.
(c) The City of Dublin.
(d) The City of Livermore.
(e) The City of Pleasanton.
(f) The City of Tracy.
(g) The County of Alameda.
(h) The County of San Joaquin.
(i) The East Bay Leadership Council.
(j) Innovation Tri-Valley.
(k) The Livermore Amador Valley Transit Authority.
(l) San Joaquin Partnership.
132660.
(a) The board may appoint an executive director to serve at the pleasure of the board.
(b) The executive director is exempt from all civil service laws and shall be paid a salary established by the board.
(c) The executive director may appoint staff or retain consultants as necessary to carry out the duties of the authority.
(d) All contracts approved and awarded by the executive director shall be awarded in accordance with state and federal laws relating to procurement. Awards shall be based on price or competitive negotiation, or on both of those things.
132665.
The Livermore Amador Valley Transit Authority shall enter into a memorandum of understanding with the San Joaquin Regional Rail Commission to comanage the rail-specific elements necessary to support the authority. For an initial one-year period, the Livermore Amador Valley Transit Authority’s administrative staff shall, if that authority has appointed a member to the board in accordance with Section 132655, provide all necessary administrative support to the board to perform its duties and responsibilities and may perform for the board any and all activities that they are authorized to perform for the Livermore Amador Valley Transit Authority. At the conclusion of the initial period, the board may, through procedures that it determines, select the Livermore Amador Valley Transit Authority, San Joaquin Regional Rail Commission, or another existing public rail transit agency for one three-year term immediately following the initial period, and thereafter for five-year terms, to provide all necessary administrative support staff to the board to perform its duties and responsibilities.
132670.
The Bay Area Rapid Transit District shall identify and expeditiously enter into an agreement with the authority to hold in trust for the authority all real and personal property and any other assets accumulated in the planning, environmental review, design, right-of-way acquisition, permitting, and construction of the connection, including, but not limited to, rights-of-way, documents, interim work products, studies, third-party agreements, contracts, and design documents, as necessary for completion of the connection.
132675.
All unencumbered moneys dedicated for the completion of the Phase 1 Project or the connection shall be transferred to the authority for the completion of the connection.
132680.
The authority shall not be responsible for any core system upgrades that preexist its establishment. This includes both existing core system deficiencies necessary to support planned service frequency upgrades and any core system upgrades needed to support prior system expansions, including, but not limited to, the Silicon Valley rapid transit corridor.
132685.
Upon the completion of the connection or any phase of the connection, the Bay Area Rapid Transit District shall assume ownership of all physical improvements constructed for that phase or the connection, and shall assume operational control, maintenance responsibilities, and related financial obligations of the phase or connection.
132690.
(a) The authority has all of the powers necessary for planning, acquiring, leasing, developing, jointly developing, owning, controlling, using, jointly using, disposing of, designing, procuring, and building the Phase 1 Project and connection, including, but not limited to, all of the following:
(1) Acceptance of grants, fees, allocations, and transfers of moneys from federal, state, and local agencies, including, but not limited to, moneys from local measures, as well as private entities.
(2) Acquiring, through purchase or through eminent domain proceedings, any property necessary for, incidental to, or convenient for, the exercise of the powers of the authority.
(3) Incurring indebtedness, secured by pledges of revenue available for the Phase 1 Project or connection completion.
(4) Contracting with public and private entities for the planning, design, and construction of the connection. These contracts may be assigned separately or may be combined to include any or all tasks necessary for completion of the Phase 1 Project or connection.
(5) Entering into cooperative or joint development agreements with local governments or private entities. These agreements may be entered into for purposes of sharing costs, selling or leasing land, air, or development rights, providing for the transferring of passengers, making pooling arrangements, or for any other purpose that is necessary for, incidental to, or convenient for the full exercise of the powers granted to the authority. For purposes of this paragraph, “joint development” includes, but is not limited to, an agreement with any person, firm, corporation, association, or organization for the operation of facilities or development of projects adjacent to, or physically or functionally related to, the Phase 1 Project or connection.
(6) Relocation of utilities, as necessary for completion of the connection.
(7) Conducting all necessary environmental reviews, including, but not limited to, completing environmental impact reports.
(b) The duties of the authority include, but are not limited to, both of the following:
(1) Conducting the financial studies and the planning and engineering necessary for completion of the Phase 1 Project and connection. Although this duty rests solely on the authority, the authority may exercise any of the powers described in subdivision (a) to fulfill this duty.
(2) Adoption of an administrative code, not later than December 1, 2017, for administration of the authority in accordance with any applicable laws, including, but not limited 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), the provisions of this chapter, laws generally applicable to local agency procurement and contracts, laws relating to contracting goals for minority and women business participation, and the Political Reform Act of 1974 (Title 9 (commencing with Section 81000) of the Government Code).
132694.
The authority shall enter into a memorandum of understanding with the Bay Area Rapid Transit District that shall address the ability of the Bay Area Rapid Transit District to review any significant changes in the scope of the design or construction, or both design and construction, of the Phase 1 Project and connection.
132695.
The Department of Transportation shall expedite reviews and requests related to the Phase 1 Project or connection and shall provide responses within 60 days.
132697.
On or before December 1, 2017, and annually thereafter, the authority shall provide a project update report to the public, to be posted on the authority’s Internet Web site, on the development and implementation of the Phase 1 Project and connection. The report, at a minimum, shall include a project summary, as well as details by phase, with all information necessary to clearly describe the status of the phase, including, but not limited to, all of the following:
(a) A summary describing the overall progress of the phase.
(b) The baseline budget for all phase costs, by segment or contract.
(c) The current and projected budget, by segment or contract, for all phase costs.
(d) Expenditures to date, by segment or contract, for all phase costs.
(e) A summary of milestones achieved during the prior year and milestones expected to be reached in the coming year.
(f) Any issues identified during the prior year and actions taken to address those issues.
(g) A thorough discussion of risks to the project and steps taken to mitigate those risks.
132699.
The authority shall be dissolved upon both the completion of the connection and the assumption by Bay Area Rapid Transit District of operational control of the connection as provided in Section 132685.
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 30814 of the
Streets and Highways Code
is amended to read:
30814.
(a)No toll shall be imposed on the passage of a pedestrian or bicycle over any bridge that is part of the state highway system, on which the travel of pedestrians and bicycles is otherwise authorized, and on which tolls are imposed on the passage of motor vehicles, including any bridge constructed pursuant to a franchise granted under this article.
(b)This section shall remain in effect only until January 1, 2022, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2022, deletes or extends that date.


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

SECTION 1.
Article 2 (commencing with Section 18711) is added to Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation Code, to read:
Article  2. California Domestic Violence Victims Fund
18711.
(a) An individual may designate on the tax return that a contribution in excess of the tax liability, if any, be made to the California Domestic Violence Victims Fund established by Section 18712. That designation is to be used as a voluntary contribution on the tax return.
(b) The contributions shall be in full dollar amounts and may be made individually by each signatory on a joint return.
(c) A designation under subdivision (a) shall be made for a taxable year on the original return for that taxable year, and once made shall be irrevocable. If payments and credits reported on the return, together with any other credits associated with the individual’s account, do not exceed the individual’s liability, the return shall be treated as though no designation has been made. If a designee is not specified, the contribution shall be transferred to the General Fund after reimbursement of the direct actual costs of the Franchise Tax Board for the collection and administration of funds under this article.
(d) If an individual designates a contribution to more than one account or fund listed on the tax return, and the amount available is insufficient to satisfy the total amount designated, the contribution shall be allocated among the designees on a pro rata basis.
(e) The Franchise Tax Board shall revise the form of the return to include a space labeled “California Domestic Violence Victims Fund” to allow for the designation permitted under subdivision (a). The form shall also include in the instructions information that the contribution may be in the amount of one dollar ($1) or more and that the contribution shall be used to further the services that California’s domestic violence programs provide for victims of domestic violence.
(f) Notwithstanding any other law, a voluntary contribution designation for the California Domestic Violence Victims Fund shall not be added on the tax return until another voluntary contribution designation is removed or space is available.
(g) A deduction shall be allowed under Article 6 (commencing with Section 17201) of Chapter 3 of Part 10 for any contribution made pursuant to subdivision (a).
18712.
There is hereby established in the State Treasury the California Domestic Violence Victims Fund to receive contributions made pursuant to Section 18711. The Franchise Tax Board shall notify the Controller of both the amount of money paid by taxpayers in excess of their tax liability and the amount of refund money that taxpayers have designated pursuant to Section 18711 to be transferred to the California Domestic Violence Victims Fund. The Controller shall transfer from the Personal Income Tax Fund to the California Domestic Violence Victims Fund an amount not in excess of the sum of the amounts designated by individuals pursuant to Section 18711 for payment into that fund.
18713.
All moneys transferred to the California Domestic Violence Victims Fund, upon appropriation by the Legislature, shall be allocated as follows:
(a) To the Franchise Tax Board and the Controller for reimbursement of all costs incurred by the Franchise Tax Board and the Controller in connection with their duties under this article.
(b) To the Office of Emergency Services for the distribution of funds to domestic violence programs in California that are in active status, as reflected on the Business Search page of the Secretary of State’s Internet Web site, and are exempt from federal income taxation as an organization described in Section 501(c)(3) of the Internal Revenue Code, and are active grant recipients under the Comprehensive Statewide Domestic Violence Program within the Office of Emergency Services as described in Section 13823.15 of the Penal Code. The Office of Emergency Services shall award the funds and be responsible for overseeing the grant program.
(1) A domestic violence program shall not use grant moneys awarded pursuant to this section for its administrative costs.
(2) The Office of Emergency Services shall not use fund moneys for its administrative costs.
18714.
(a) Except as otherwise provided in subdivision (b), this article shall remain in effect only until January 1 of the fifth taxable year following the first appearance of the California Domestic Violence Victims Fund on the personal income tax return, and is repealed as of December 1 of that year.
(b) (1) By September 1 of the second calendar year and each subsequent calendar year that the California Domestic Violence Victims Fund appears on the tax return, the Franchise Tax Board shall do all of the following:
(A) Determine the minimum contribution amount required to be received during the next calendar year for the fund to appear on the tax return for the taxable year that includes that next calendar year.
(B) Provide written notification to the Office of Emergency Services of the amount determined in subparagraph (A).
(C) Determine whether the amount of contributions estimated to be received during the calendar year will equal or exceed the minimum contribution amount determined by the Franchise Tax Board for the calendar year pursuant to subparagraph (A). The Franchise Tax Board shall estimate the amount of contributions to be received by using the actual amounts received and an estimate of the contributions that will be received by the end of that calendar year.
(2) If the Franchise Tax Board determines that the amount of the contributions estimated to be received during a calendar year will not at least equal the minimum contribution amount for the calendar year, this article shall be inoperative with respect to taxable years beginning on or after January 1 of that calendar year and shall be repealed on December 1 of that year.
(3) For purposes of this section, the minimum contribution amount for a calendar year means two hundred fifty thousand dollars ($250,000) for the second calendar year after the first appearance of the California Domestic Violence Victims Fund on the personal income tax return or the minimum contribution amount as adjusted pursuant to subdivision (c).
(c) For each calendar year, beginning with the third calendar year after the first appearance of the California Domestic Violence Victims Fund on the personal income tax return, the Franchise Tax Board shall adjust, on or before September 1 of that calendar year, the minimum contribution amount specified in subdivision (b) as follows:
(1) The minimum contribution amount for the calendar year shall be an amount equal to the product of the minimum contribution amount for the prior calendar year multiplied by the inflation factor adjustment as specified in subparagraph (A) of paragraph (2) of subdivision (h) of Section 17041, rounded off to the nearest dollar.
(2) The inflation factor adjustment used for the calendar year shall be based on the figures for the percentage change in the California Consumer Price Index for all items received on or before August 1 of the calendar year pursuant to paragraph (1) of subdivision (h) of Section 17041.


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

SECTION 1.
Section 19619 of the Business and Professions Code is amended to read:
19619.
(a) Since the purpose of this chapter is to encourage agriculture and the breeding of horses in this state, a California Standardbred Sires Stakes Program is hereby established for standardbred horses bred in the State of California.
(b) Horses eligible to race in the California Standardbred Sires Stakes Program shall be the offspring of a registered California standardbred stallion standing in California during an entire breeding season, or the offspring of a registered standardbred stallion standing in Iowa, Wisconsin, Minnesota, Michigan, or Maine, or the Province of Alberta, Canada.
(c) (1) Responsibility for the California Standardbred Sires Stakes Program is with the board. Administration of the California Standardbred Sires Stakes Program is the responsibility of the California Standardbred Sires Stakes Committee. The committee shall consist of five members and one alternate selected from and by the California Harness Horsemen’s Association.
(2) Administrative expenses of the committee in any given year shall not exceed 4 percent of that year’s income to the California Standardbred Sires Stakes Program, and all expenses shall be approved by the board.
(d) The board may do all that is necessary to ensure that the California Standardbred Sires Stakes Program is appropriately administered and shall prepare, issue, and adopt rules and regulations providing for all of the following:
(1) Classes and divisions of races, eligibility of horses and owners therefor, and prizes and awards to be awarded.
(2) Nominating, sustaining, and entry fees for horses and races.
(3) Registration and certification of California stallions, mares bred to those stallions, and foals produced thereby.
(4) Any other matter that is considered to be necessary and appropriate for the proper administration and implementation of the California Standardbred Sires Stakes Program.
(e) The funds for the California Standardbred Sires Stakes Program made available pursuant to Section 19491.7 and the nominating, sustaining, and entry fees provided for in this section shall be deposited with the California Standardbred Sires Stakes Committee. The committee shall distribute the funds deposited with it in accordance with this section for the purposes of the program in the manner approved by the board.
(f) Pursuant to Section 19491.7, the breakage used to fund the California Standardbred Sires Stakes Program and to increase purses shall be divided in accordance with the following criteria:
California Standardbred
Sires Stakes Program
Purses
1977 ........................
10%
90%
1978 ........................
20%
80%
1979 ........................
25%
75%
1980 ........................
50%
50%
January 1 to June 30, 1981 ........................
75%
25%
July 1, 1981, and thereafter ........................
100%
0%
(g) An amount equal to 10 percent of the total purses raced for in the California sires stakes races shall be awarded to the standardbred breeders of the horses that earned purse money in the California standardbred sires stakes races in proportion to the amount of purse money earned by each horse.
(h) An amount equal to 2 percent of the total purses raced for in the California sires stakes races shall be awarded to the owners of the registered California standardbred stallions that sired horses that earned purse money in the California standardbred sires stakes races in proportion to the amount of purse money earned by each horse so sired.
(i) Notwithstanding subdivision (b), the board may establish a series of races for two-year-old and three-year-old fillies that are wholly owned by a California resident on the first day of January of the year that they become two years old and are wholly owned by a California resident on the day of the race.
(j) The balance of the remaining funds, including nominating, sustaining, and entry fees, and after the expenditures described in subdivisions (e), (g), (h), and (i) have been made, shall be allocated to purses for races comprising the California Standardbred Sires Stakes Program.
(k) The schedule of races that shall comprise the California Standardbred Sires Stakes Program during each year shall be set by the board in accordance with the following criteria:
(1) California standardbred sires stakes races shall be scheduled for two-year-old or three-year-old trotters and two-year-old and three-year-old pacers at the discretion of the California Standardbred Sires Stakes Committee, except that no two-year-old races shall be held before the first day of June of any year. Races for four-year-old or aged trotters and four-year-old or aged pacers may also be scheduled.
(2) Base purses for each set of races conducted during any given year at any race meeting shall be determined by the committee.
(3) In each division of each race in the California standardbred sires stakes races, the purse shall be divided in the following manner:
1st  ........................
50%
2nd  ........................
25%
3rd  ........................
12%
4th  ........................
8%
5th  ........................
5%


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

SECTION 1.
The Legislature finds and declares the following:
(a) California is home to some of the most innovative and resourceful entrepreneurs in the world, making it the nation’s leader in technology and related industries.
(b) The state should harness this innovation and leverage it to provide the best possible customer service to all of its citizens in the most cost-effective, efficient, and creative manner.
(c) Creativity and efficiency should not be limited to the private sector, but rather should be embraced and developed to further the public interest.
(d) Allowing the most creative private sector professionals to volunteer their time and expertise to make government work better
and be more streamlined
for its citizens would permit the state to utilize this creativity for the benefit of all its citizens.
(e) Establishing a professionals in public service
program, in
program within
a California state agency would permit implementation of a model that has been applied successfully by a variety of public and private entities and has proven to be a useful tool to help various processes become more efficient.
SEC. 2.
(a)The Legislative Analyst and the California State Auditor shall collaboratively convene a work group for the purposes of determining the most appropriate state agency to house a professionals in public service pilot program with the goal of making state government activities and practices more streamlined and accessible to small businesses.
(b)The Legislative Analyst and the California State Auditor shall report the work group’s recommendations to the Legislature on or before December 31, 2016. The report shall be submitted as set forth in Section 9795 of the Government Code.
(c)This section is repealed on January 1, 2017.
SEC. 2.
Article 7 (commencing with Section 12100.1) is added to Chapter 1.6 of Part 2 of Division 3 of Title 2 of the Government Code, to read:
Article  7. Entrepreneur-in-Residence Act of 2016
12100.1.
This article shall be known and may be cited as the Entrepreneur-in-Residence Act of 2016.
12100.2.
As used in this article, the following terms shall have the following meanings:
(a) “Agency” means any state agency, department, or commission.
(b) “Entrepreneur-in-residence” means an individual appointed to a position under the program.
(c) “Office” means the Government Operations Agency.
(d) “Program” means the entrepreneur-in-residence program, as established by this article.
(e) “Secretary” means the Secretary of the Government Operations Agency, or his or her designee.
12100.3.
(a) The state entrepreneur-in-residence program is hereby established within the office for the purpose of utilizing the expertise of private-sector entrepreneurs to help make state governmental activities and practices more streamlined and accessible.
(b) (1) The secretary may appoint one or more entrepreneurs-in-residence under the program during each year, however, the secretary shall not appoint more than 10 entrepreneurs-in-residence during any calendar year. The secretary, with the approval of the state agency, may appoint an entrepreneur-in-residence to any state agency.
(2) Any person appointed as an entrepreneur-in-residence shall meet at least one of the following qualifications:
(A) The individual shall have demonstrated success in working with California small businesses and entrepreneurs.
(B) The individual shall have successfully developed, invented, or created a product and brought the product to the marketplace.
(3) Any person appointed as an entrepreneur-in-residence shall not have a conflict of interest with the activities of the state agency where he or she is placed, including, but not limited to, having any existing business before the state agency in which he or she is proposed to be placed or is placed.
(c) The secretary shall accept appointment applications for the position of an entrepreneur-in-residence and establish procedures for complying with this article no later than March 1, 2017. Among other requirements, the procedures shall include the following:
(1) A process for engaging with and receiving approval from state agencies about prospective appointments.
(2) A process for screening prospective appointees, including checking background and references.
(3) A standard memorandum of understanding that stipulates the responsibilities of each party in undertaking an entrepreneurship-in-residence under the program, including, but not limited to, hours, duties, goals, expected outcomes, agency support, and office participation. This standard memorandum of understanding shall be a model that shall be adapted to address each individual placement to create the memorandum of understanding into which the appointee, the agency, and the office enter.
(d)  As a condition of having a placement of an entrepreneur-in-residence, the state agency shall agree to the procedures set by the secretary pursuant to subdivision (c).
(e) Before the effective date of an appointment under this article, every individual selected to participate in the program shall have entered into a memorandum of understanding with the secretary and the head of the state agency where the entrepreneur will serve. The memorandum of understanding shall be specific to the placement and clearly identify the hours, duties, goals, expected outcomes, agency support, and office participation. The memorandum of understanding shall set the benchmarks and metrics for evaluating the success of the placement.
(f) In administering the entrepreneur-in-residence program, the secretary shall appoint entrepreneurs-in-residence in a variety of interested agencies. However, to the extent practicable, the secretary shall not appoint more than two entrepreneurs-in-residence to positions in the same agency during the same year.
(g) An entrepreneur-in-residence may serve as an entrepreneur-in-residence for no longer than two years.
12100.4.
(a) An entrepreneur-in-residence shall have all of the following duties:
(1) Providing recommendations to the head of the state agency the entrepreneur-in-residence serves on how to streamline, eliminate, or modify potentially inefficient or duplicative activities, processes, and programs, if any, at the state agency.
(2) Providing recommendations to the head of the state agency the entrepreneur-in-residence serves on methods to improve program efficiency at the state agency or new initiatives, if any, that may be instituted at the state agency to address the needs of small businesses and entrepreneurs.
(3) Assisting the state agency the entrepreneur-in-residence serves in improving outreach and service to small business concerns and entrepreneurs including, but not limited to, the following:
(A) Facilitating meetings and forums to educate small businesses and entrepreneurs on programs or initiatives of the state agency the entrepreneur-in-residence is serving.
(B) Facilitating in-service sessions with employees of the office and the state agency the entrepreneur-in-residence is serving on issues of concern to entrepreneurs and small businesses.
(C) Providing technical assistance or mentorship to small businesses and entrepreneurs in accessing programs at the office and the state agency the entrepreneur-in-residence is serving.
(b) An entrepreneur-in-residence shall serve on a voluntary basis, and shall dedicate at least 16 hours per week to the program, unless a greater number of hours per week is otherwise agreed upon. At the discretion of the head of a participating state agency, the entrepreneur-in-residence shall have access to an office, computer, and other related support services and equipment from the participating state agency as the state agency determines to be necessary for the entrepreneur-in-residence to discharge his or her duties.
(c) An entrepreneur-in-residence shall report directly to the head of the state agency in which the entrepreneur-in-residence is serving and shall also keep the secretary of the office updated on his or her activities, findings, and recommendations.
12100.5.
(a) The secretary shall establish an informal working group of entrepreneurs-in-residence to discuss best practices, experiences, obstacles, opportunities, and recommendations.
(b) (1)   The secretary shall annually prepare and submit to the Governor and the Assembly Committee on Jobs, Economic Development, and the Economy a report on the program. The report, at a minimum, shall include the following:
(A) A progress report on the activities of each entrepreneur-in-residence during the reporting period, based on the applicable memorandum of understanding.
(B) A general summary on how the overall program is addressing the goals of the program, which are as follows:
(i) Making state programs simpler, easier to access, more efficient, and more responsive to the needs and concerns of small businesses and entrepreneurs.
(ii) Providing for better outreach by the state to the private sector.
(iii) Strengthening coordination and interaction between the state and the private sector on issues relevant to entrepreneurs and small business concerns.
(2) The requirement for submitting a report imposed under paragraph (1) of this subdivision is inoperative on January 1, 2021, pursuant to Section 10231.5.
(3) It is anticipated that program impacts will not be fully measurable until recommended changes and activities are fully implemented. The office and the agency where an entrepreneur-in-residence is placed shall continue measuring and reporting the impact of the activities of the entrepreneur-in-residence for three years following the placement of an entrepreneur-in-residence.


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

SECTION 1.
Section 837.5 is added to the Code of Civil Procedure, immediately following Section 837, to read:
837.5.
(a) The state may intervene in a comprehensive adjudication conducted pursuant to this chapter.
(b) This section does not affect substantive law.
SEC. 2.
Section 10720.1 of the Water Code is amended to read:
10720.1.
In enacting this part, it is the intent of the Legislature to do all of the following:
(a) To provide for the sustainable management of groundwater basins.
(b) To enhance local management of groundwater consistent with rights to use or store groundwater and Section 2 of Article X of the California Constitution. It is the intent of the Legislature to preserve the security of water rights in the state to the greatest extent possible consistent with the sustainable management of groundwater.
(c) To establish minimum standards for sustainable groundwater management.
(d) To provide local groundwater agencies with the authority and the technical and financial assistance necessary to sustainably manage groundwater.
(e) To avoid or minimize subsidence.
(f) To improve data collection and understanding about groundwater.
(g) To increase groundwater storage and remove impediments to recharge.
(h) To manage groundwater basins through the actions of local governmental agencies to the greatest extent feasible, while minimizing state intervention to only when necessary to ensure that local agencies manage groundwater in a sustainable manner.
(i) To provide a more efficient and cost-effective groundwater adjudication process that protects water rights, ensures due process, prevents unnecessary delay, and furthers the objectives of this part.
SEC. 3.
Section 10720.5 of the Water Code is amended to read:
10720.5.
(a) Groundwater management pursuant to this part shall be consistent with Section 2 of Article X of the California Constitution. Nothing in this part modifies rights or priorities to use or store groundwater consistent with Section 2 of Article X of the California Constitution, except that in basins designated medium- or high-priority basins by the department, no extraction of groundwater between January 1, 2015, and the date of adoption of a groundwater sustainability plan pursuant to this part or the approval by the department of an alternative submitted under Section 10733.6, whichever is sooner, may be used as evidence of, or to establish or defend against, any claim of prescription.
(b) Nothing in this part, or in any groundwater management plan adopted pursuant to this part, determines or alters surface water rights or groundwater rights under common law or any provision of law that determines or grants surface water rights.
(c) Water rights may be determined in an adjudication action pursuant to Chapter 7 (commencing with Section 830) of Title 10 of Part 2 of the Code of Civil Procedure.
SEC. 4.
Section 10722.2 of the Water Code is amended to read:
10722.2.
(a) A local agency or an entity directed by the court in an adjudication action to file the request may request that the department revise the boundaries of a basin, including the establishment of new subbasins. A request shall be supported by the following information:
(1) Information demonstrating that the proposed adjusted basin can be the subject of sustainable groundwater management.
(2) Technical information regarding the boundaries of, and conditions in, the proposed adjusted basin.
(3) Information demonstrating that the entity proposing the basin boundary adjustment consulted with interested local agencies and public water systems in the affected basins before filing the proposal with the department.
(4) Other information the department deems necessary to justify revision of the basin’s boundary.
(b) By January 1, 2016, the department shall adopt regulations regarding the information required to comply with subdivision (a), including the methodology and criteria to be used to evaluate the proposed revision. The department shall adopt the regulations, including any amendments thereto, authorized by this section as emergency regulations in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption of these regulations is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding the Administrative Procedure Act, emergency regulations adopted by the department pursuant to this section shall not be subject to review by the Office of Administrative Law and shall remain in effect until revised by the department.
(c) Methodology and criteria established pursuant to subdivision (b) shall address all of the following:
(1) How to assess the likelihood that the proposed basin can be sustainably managed.
(2) How to assess whether the proposed basin would limit the sustainable management of adjacent basins.
(3) How to assess whether there is a history of sustainable management of groundwater levels in the proposed basin.
(d) Prior to adopting the regulations pursuant to subdivision (b), the department shall conduct three public meetings to consider public comments. The department shall publish the draft regulations on its Internet Web site at least 30 days before the public meetings. One meeting shall be conducted at a location in northern California, one meeting shall be conducted at a location in the central valley of California, and one meeting shall be conducted at a location in southern California.
(e) The department shall provide a copy of its draft revision of a basin’s boundaries to the California Water Commission. The California Water Commission shall hear and comment on the draft revision within 60 days after the department provides the draft revision to the commission.
SEC. 5.
Chapter 12 (commencing with Section 10737) is added to Part 2.74 of Division 6 of the Water Code, to read:
CHAPTER  12. Determination of Rights to Groundwater
10737.
Except as provided in this chapter, an adjudication action to determine rights to groundwater in a basin shall be conducted in accordance with the Code of Civil Procedure, including pursuant to Chapter 7 (commencing with Section 830) of Title 10 of Part 2 of that code.
10737.2.
In an adjudication action for a basin required to have a groundwater sustainability plan under this part, the court shall manage the proceedings in a manner that minimizes interference with the timely completion and implementation of a groundwater sustainability plan, avoids redundancy and unnecessary costs in the development of technical information and a physical solution, and is consistent with the attainment of sustainable groundwater management within the timeframes established by this part.
10737.4.
(a) Chapter 11 (commencing with Section 10735) shall not apply to a judgment approved by the court pursuant to Section 850 of the Code of Civil Procedure if both of the following apply:
(1) A local agency or a party directed by the court to file the submission submits the judgment to the department for evaluation and assessment pursuant to paragraph (2) of subdivision (b) of Section 10733.6.
(2) The department determines that the judgment satisfies the objectives of this part for the basin.
(b) A party or group of parties proposing a stipulated judgment pursuant to subdivision (b) of Section 850 of the Code of Civil Procedure may submit the proposed stipulated judgment to the department for evaluation and assessment pursuant to paragraph (2) of subdivision (b) of Section 10733.6.
(c) Notwithstanding subdivision (c) of Section 10733.6, a judgment or proposed stipulated judgment pursuant to this section may be submitted to the department after January 1, 2017.
(d) A determination of the department on a submission pursuant to this section is subject to judicial review pursuant to Section 1085 of the Code of Civil Procedure. Venue shall be in the court with jurisdiction over the adjudication action and the case shall be coordinated with the adjudication action.
10737.6.
If the department determines that a judgment satisfies the objectives of this part in accordance with paragraph (2) of subdivision (a) of Section 10737.4, the department shall submit to the court the assessments and any recommended corrective actions that the department issues pursuant to Section 10733.8. The court, after notice and, if necessary, an evidentiary hearing, shall determine whether to amend the judgment pursuant to Section 852 of the Code of Civil Procedure to adopt the department’s recommended corrective actions.
10737.8.
In addition to making any findings required by subdivision (a) of Section 850 of the Code of Civil Procedure or any other law, the court shall not approve entry of judgment in an adjudication action for a basin required to have a groundwater sustainability plan under this part unless the court finds that the judgment will not substantially impair the ability of a groundwater sustainability agency, the board, or the department to comply with this part and to achieve sustainable groundwater management.
SEC. 6.
This act shall only become operative if Assembly Bill 1390 of the 2015–16 Regular Session is enacted and becomes effective.


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

SECTION 1.
Section 10072 of the Welfare and Institutions Code is amended to read:
10072.
The electronic benefits transfer system required by this chapter shall be designed to do, but not be limited to, all of the following:
(a) To the extent permitted by federal law and the rules of the program providing the benefits, recipients who are required to receive their benefits using an electronic benefits transfer system shall be permitted to gain access to the benefits in any part of the state where electronic benefits transfers are accepted. All electronic benefits transfer systems in this state shall be designed to allow recipients to gain access to their benefits by using every other electronic benefits transfer system.
(b) To the maximum extent feasible, electronic benefits transfer systems shall be designed to be compatible with the electronic benefits transfer systems in other states.
(c) All reasonable measures shall be taken in order to ensure that recipients have access to electronically issued benefits through systems such as automated teller machines, point-of-sale devices, or other devices that accept electronic benefits transfer transactions. Benefits provided under Chapter 2 (commencing with Section 11200) of Part 3 shall be staggered over a period of three calendar days, unless a county requests a waiver from the department and the waiver is approved, or in cases of hardship pursuant to subdivision (p).
(d) The system shall provide for reasonable access to benefits to recipients who demonstrate an inability to use an electronic benefits transfer card or other aspect of the system because of disability, language, lack of access, or other barrier. These alternative methods shall conform to the requirements of the Americans with Disabilities Act (42 U.S.C. Sec. 12101, et seq.), including reasonable accommodations for recipients who, because of physical or mental disabilities, are unable to operate or otherwise make effective use of the electronic benefits transfer system.
(e) The system shall permit a recipient the option to choose a personal identification number, also known as a “PIN” number, to assist the recipient to remember his or her number in order to allow access to benefits. Whenever an institution, authorized representative, or other third party not part of the recipient household or assistance unit has been issued an electronic benefits transfer card, either in lieu of, or in addition to, the recipient, the third party shall have a separate card and personal identification number. At the option of the recipient, he or she may designate whether restrictions apply to the third party’s access to the recipient’s benefits. At the option of the recipient head of household or assistance unit, the county shall provide one electronic benefits transfer card to each adult member to enable them to access benefits.
(f) The system shall have a 24-hour per day toll-free telephone hotline for the reporting of lost or stolen cards that will provide recipients, at no additional cost to the recipient, with information on how to have the card and personal identification number replaced, and that will allow an authorized representative or head of household to access, over the telephone, the transaction history detail for at least the last 10 transactions and to request that the transaction history detail for at least the past two months be sent by mail.
(g) The system shall have an Internet Web site that will provide recipients, at no additional cost to the recipient, with information on how to have the card and personal identification number replaced, and that will allow an authorized representative or head of household to view the transaction history detail for at least the last 10 transactions and to request that the transaction history detail for at least the past two months be sent by mail.
(h) In addition to the ability to receive transaction history detail pursuant to subdivisions (f) and (g), a county human services agency shall make available to an authorized representative or head of household, at no additional cost to the authorized representative or head of household, all electronic benefit transaction history details that are available to the county human services agency within 10 business days after a request has been received by the agency.
(i) (1) A recipient shall not incur any loss of electronic benefits after reporting that his or her electronic benefits transfer card or personal identification number has been lost or stolen. The system shall provide for the prompt replacement of lost or stolen electronic benefits transfer cards and personal identification numbers. Electronic benefits for which the case was determined eligible and that were not withdrawn by transactions using an authorized personal identification number for the account shall also be promptly replaced.
(2) A recipient shall not incur any loss of cash benefits that are taken by an unauthorized withdrawal, removal, or use of benefits that does not occur by the use of a physical
EBT
electronic benefits transfer
card issued to the recipient or authorized third party to directly access the benefits. Benefits taken as described in this paragraph shall be promptly replaced in accordance with the protocol established by the department pursuant to paragraph (3).
(3) The State Department of Social Services shall establish a protocol for recipients to report electronic theft of cash benefits that minimizes the burden on recipients, ensures prompt replacement of benefits in order to minimize the harm to recipients, and ensures program integrity. This protocol may include the automatic replacement of benefits without the need for recipient reporting and verification.
(j) Electronic benefits transfer system consumers shall be informed
on
as to
how to use electronic benefits transfer cards, how to protect their cards from misuse, and where consumers can use their cards to withdraw benefits without incurring a fee, charge, or surcharge.
(k) The electronic benefits transfer system shall be designed to inform recipients when the electronic benefits transfer system does not function or is expected not to function for more than a one-hour period between 6 a.m. and midnight during any 24-hour period. This information shall be made available in the recipient’s preferred language if the electronic benefits transfer system vendor contract provides for services in that language.
(l) Procedures shall be developed for error resolution.
(m) No fee shall be charged by the state, a county, or an electronic benefits processor certified by the state to retailers participating in the electronic benefits transfer system.
(n) Except for CalFresh transactions, a recipient may be charged a fee, not to exceed the amount allowed by applicable state and federal law and customarily charged to other customers, for cash withdrawal transactions that exceed four per month.
(o) The electronic benefits transfer system shall be designed to ensure that recipients of benefits under Chapter 2 (commencing with Section 11200) of Part 3 have access to using or withdrawing benefits with minimal fees or charges, including an opportunity to access benefits with no fee or charges.
(p) A county shall exempt an individual from the three-day staggering requirement under subdivision (c) on a case-by-case basis for hardship. Hardship includes, but is not limited to, the incurrence of late charges on an individual’s housing payments.
(q) A county shall use information provided by the department to inform recipients of benefits under Chapter 2 (commencing with Section 11200) of Part 3 of all of the following:
(1) The methods of electronic delivery of benefits available, including distribution of benefits through the electronic benefits transfer system or direct deposit pursuant to Section 11006.2.
(2) Applicable fees and charges, including surcharges, consumer and privacy protections, and liability for theft associated with the electronic benefits transfer system.
(3) How to avoid fees and charges, including opting for delivery of benefits by direct deposit and using the electronic benefits transfer card solely at surcharge free locations.
(4) Where to withdraw benefits without a surcharge when using the electronic benefits transfer system.
(5) That a recipient may authorize any available method of electronic delivery of benefits and instructions regarding how the recipient may select or change his or her preferred method of electronic delivery of benefits and that the recipient shall be given the opportunity to select the method prior to the first payment.
(6) That a recipient may be entitled to an alternative method of delivery if the recipient demonstrates an inability to use an electronic benefits transfer card or other aspect of the system because of disability, language, lack of access, or other barrier pursuant to subdivision (d) and instructions regarding how to determine whether the recipient qualifies for an alternative method of delivery.
(7) That a recipient may be entitled to an exemption from the three-day staggering requirement under subdivision (c) on a case-by-case basis for hardship pursuant to subdivision (o) and instructions regarding how to determine whether the recipient qualifies for the exemption.
(r) A county is in compliance with subdivision (q) if it provides the recipient a copy of the information developed by the department. A county may provide a recipient information, in addition to the copy of the information developed by the department, pursuant to subdivision (q), either verbally or in writing, if the county determines the additional information will benefit the recipient’s understanding of the information provided.


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

SECTION 1.
Section 1798.29 of the Civil Code is amended to read:
1798.29.
(a)
Any
An
agency that owns or licenses computerized data that includes personal information shall disclose
any
a
breach of the security of the system following discovery or notification of the breach in the security of the data to
any
a
resident of California whose unencrypted personal information was, or is reasonably believed to have been, acquired by an unauthorized person. The disclosure shall be made in the most expedient time possible and without unreasonable delay, consistent with the legitimate needs of law enforcement, as provided in subdivision (c), or any measures necessary to determine the scope of the breach and restore the reasonable integrity of the data system.
(b)
Any
An
agency that maintains computerized data that includes personal information that the agency does not own shall notify the owner or licensee of the information of
any
the
breach of the security of the data immediately following discovery, if the personal information was, or is reasonably believed to have been, acquired by an unauthorized person.
(c) The notification required by this section may be delayed if a law enforcement agency determines that the notification will impede a criminal investigation. The notification required by this section shall be made
promptly
after the law enforcement agency determines that it will not compromise the investigation.
(d)
Any
An
agency that is required to issue a security breach notification pursuant to this section shall meet all of the following requirements:
(1) The security breach notification shall be written in plain language.
(2) The security breach notification shall include, at a minimum, the following information:
(A) The name and contact information of the reporting agency subject to this section.
(B) A list of the types of personal information that were or are reasonably believed to have been the subject of a breach.
(C) If the information is possible to determine at the time the notice is provided, then any of the following: (i) the date of the breach, (ii) the estimated date of the breach, or (iii) the date range within which the breach occurred. The notification shall also include the date of the notice.
(D) Whether the notification was delayed as a result of a law enforcement investigation, if that information is possible to determine at the time the notice is provided.
(E) A general description of the breach incident, if that information is possible to determine at the time the notice is provided.
(F) The toll-free telephone numbers and addresses of the major credit reporting agencies, if the breach exposed a social security number or a driver’s license or California identification card number.
(G) If the agency providing the notification was the source of the breach, an offer to provide appropriate identity theft prevention and mitigation services, if any, shall be provided at no cost to the affected person for not less than 12 months, along with all information necessary to take advantage of the offer to any person whose information was or may have been breached if the breach exposed or may have exposed personal information defined in subparagraphs (A) and (B) of paragraph (1) of subdivision (g).
(3) At the discretion of the agency, the security breach notification may also include any of the following:
(A) Information about what the agency has done to protect individuals whose information has been breached.
(B) Advice on steps that the person whose information has been breached may take to protect himself or herself.
(4) In the case of a breach of the security of the system involving personal information defined in paragraph (2) of subdivision (g) for an online account, and no other personal information defined in paragraph (1) of subdivision (g), the agency may comply with this section by providing the security breach notification in electronic or other form that directs the person whose personal information has been breached to promptly change his or her password and security question or answer, as applicable, or to take other steps appropriate to protect the online account with the agency and all other online accounts for which the person uses the same user name or email address and password or security question or answer.
(5) In the case of a breach of the security of the system involving personal information defined in paragraph (2) of subdivision (g) for login credentials of an email account furnished by the agency, the agency shall not comply with this section by providing the security breach notification to that email address, but may, instead, comply with this section by providing notice by another method described in subdivision (i) or by clear and conspicuous notice delivered to the resident online when the resident is connected to the online account from an Internet Protocol address or online location from which the agency knows the resident customarily accesses the account.
(e)
Any
An
agency that is required to issue a security breach notification pursuant to this section to more than 500 California residents as a result of a single breach of the security system shall electronically submit a single sample copy of that security breach notification, excluding any personally identifiable information, to the Attorney General. A single sample copy of a security breach notification shall not be deemed to be within subdivision (f) of Section 6254 of the Government Code.
(f) For purposes of this section, “breach of the security of the system” means unauthorized acquisition of computerized data that compromises the security, confidentiality, or integrity of personal information maintained by the agency. Good faith acquisition of personal information by an employee or agent of the agency for the purposes of the agency is not a breach of the security of the system, provided that the personal information is not used or subject to further unauthorized disclosure.
(g) For purposes of this section, “personal information” means either of the following:
(1) An individual’s first name or first initial and last name in combination with any one or more of the following data elements, when either the name or the data elements are not encrypted:
(A) Social security number.
(B) Driver’s license number or California identification card number.
(C) Account number, credit or debit card number, in combination with any required security code, access code, or password that would permit access to an individual’s financial account.
(D) Medical information.
(E) Health insurance information.
(2) A user name or email address, in combination with a password or security question and answer that would permit access to an online account.
(h) (1) For purposes of this section, “personal information” does not include publicly available information that is lawfully made available to the general public from federal, state, or local government records.
(2) For purposes of this section, “medical information” means any information regarding an individual’s medical history, mental or physical condition, or medical treatment or diagnosis by a health care professional.
(3) For purposes of this section, “health insurance information” means an individual’s health insurance policy number or subscriber identification number, any unique identifier used by a health insurer to identify the individual, or any information in an individual’s application and claims history, including any appeals records.
(i) For purposes of this section, “notice” may be provided by one of the following methods:
(1) Written notice.
(2) Electronic notice, if the notice provided is consistent with the provisions regarding electronic records and signatures set forth in Section 7001 of Title 15 of the United States Code.
(3) Substitute notice, if the agency demonstrates that the cost of providing notice would exceed two hundred fifty thousand dollars ($250,000), or that the affected class of subject persons to be notified exceeds 500,000, or the agency does not have sufficient contact information. Substitute notice shall consist of all of the following:
(A) Email notice when the agency has an email address for the subject persons.
(B) Conspicuous posting of the notice on the agency’s Internet Web site page, if the agency maintains one.
(C) Notification to major statewide media and the Office of Information Security within the Department of Technology.
(j) Notwithstanding subdivision (i), an agency that maintains its own notification procedures as part of an information security policy for the treatment of personal information and is otherwise consistent with the timing requirements of this part shall be deemed to be in compliance with the notification requirements of this section if it notifies subject persons in accordance with its policies in the event of a breach of security of the system.
(k) Notwithstanding the exception specified in paragraph (4) of subdivision (b) of Section 1798.3, for purposes of this section, “agency” includes a local agency, as defined in subdivision (a) of Section 6252 of the Government Code.


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

SECTION 1.
Section 11401.5 is added to the Insurance Code, to read:
11401.5.
(a) (1) Each association that holds a certificate of authority pursuant to this chapter and that issues long-term disability or long-term care policies or contracts shall submit to the commissioner the opinion of a qualified actuary as to whether the reserves and related actuarial items that support the policies or contracts issued pursuant to this chapter, including policies and contracts issued by entities established by these associations that provide benefits described in this chapter, are expected to be adequate to satisfy contractual provisions, are based on reasonable assumptions, and are based on actuarial standards of practice published by the American Academy of Actuaries and the Actuarial Standards Board. An association that holds a certificate of authority pursuant to this chapter shall file its opinion no later than July 1, 2016. The opinion shall have been completed no earlier than December 31, 2013.
(2) An association is considered to have issued a long-term care or disability policy or contract if it self-funds all or part of the resulting obligation. An association that markets long-term policies or contracts issued by an insurer that is admitted by the department to offer insurance products in the state is exempt from this reporting requirement.
(3) An association seeking a certificate of authority pursuant to this chapter shall file an opinion, to the extent feasible, that establishes that it would have adequate resources to provide benefits described in this chapter as required to satisfy its proposed contractual obligations.
(b) The opinion required by subdivision (a) shall include supporting memoranda from the same qualified actuary as to whether the reserves and related actuarial items held in support of the policies and contracts, when considered in light of the assets held by the association with respect to the reserves and related actuarial items, including, but not limited to, the investment earnings on the assets and the considerations anticipated to be received and retained under the policies and contracts, and shall make adequate provision for the association’s obligations under the policies and contracts, including, but not limited to, the benefits and any administrative and operating expenses associated with the policies and contracts.
(c) The opinion required by subdivision (a) shall be governed by the following provisions:
(1) It shall include supporting memoranda consistent with actuarial standards of practice published by the American Academy of Actuaries and the Actuarial Standards Board.
(2) If the association fails to provide an opinion and supporting memoranda to the commissioner that meets the requirements of this section, the commissioner shall notify the association of the deficiencies in the filing, and shall make a specific request that identifies the issues that should be addressed in an amended filing. The requests shall be consistent with actuarial standards of practice published by the American Academy of Actuaries and the Actuarial Standards Board.
(d) If the commissioner determines, after a review of the filings from the associations, that the laws governing these associations are inadequate to protect the interests of the members of the associations, he or she shall, on or before July 1, 2017, develop and deliver recommendations to the Assembly Committee on Insurance and the Senate Committee on Insurance regarding changes in the law necessary to protect the interests of members of the associations.
(e) Documents, materials, or other information, including the opinion with supporting memoranda, submitted pursuant to this section that are in the possession or control of the Department of Insurance and that are obtained by, created by, or disclosed to the commissioner or any other person pursuant to this section, are recognized by this state as being proprietary and to contain trade secrets. Those documents, materials, or other information shall be confidential by law and privileged, shall not be subject to disclosure by the commissioner pursuant to the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), and shall not be subject to subpoena or discovery from the commissioner or admissible into evidence, in a private civil action if obtained from the commissioner. The commissioner shall not otherwise make those documents, materials, or other information public without the prior written consent of the association.
(f) This section shall remain in effect only until December 31, 2018, and as of that date is repealed, unless a later enacted statute, that is enacted before December 31, 2018, deletes or extends that date.
SEC. 2.
Section 11401.6 is added to the Insurance Code, to read:
11401.6.
(a) An association that self-funds all or part of the benefits provided under this chapter shall include the following language, or other language approved by the commissioner, in all contracts that are not regulated by the department, and in certificates evidencing coverage under those contracts, in capital letters and in a minimum of 12-point type:

“ALL OR A PORTION OF THE BENEFITS PROVIDED BY THIS CONTRACT ARE NOT SUBJECT TO REGULATION BY THE CALIFORNIA DEPARTMENT OF INSURANCE, AND THE CONTRACT IS NOT GUARANTEED BY THE CALIFORNIA LIFE AND HEALTH INSURANCE GUARANTEE ASSOCIATION.”

(b) This section shall remain in effect only until December 31, 2018, and as of that date is repealed, unless a later enacted statute, that is enacted before December 31, 2018, deletes or extends that date.
SEC. 3.
The Legislature finds and declares that Section 1 of this act, which adds Section 11401.5 of the Insurance 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:
In order to protect proprietary information, it is necessary to enact legislation that limits the public’s right of access to insurance holding company information that is provided pursuant to Section 11401.5 of the Insurance Code.