may - california department of financedof.ca.gov/budget/historical_budget_publications... ·...

Honorable Holly Mitchell, Chair Senate Budget and Fiscal Review Committee

Attention: Mr. Joe Stephenshaw, Staff Director (2)

Honorable Phil Ting, Chair Assembly Budget Committee

Attention: Mr. Christian Griffith, Chief Consultant (2)

Amendment to and Addition of Various Budget Bill Items, Support and Local Assistance, Office of Emergency Services and Various Departments within the Business, Consumer Services and Housing Agency; Environmental Protection Agency; and Health and Human Services Agency

Office of Emergency Services, Disaster Preparedness and Response-It is requested that Item 0690-001-0001 be increased by $7,316,000 and 83.5 positions and Item 0690-001-0890 be increased by $874,000 and 10.5 positions to enhance the state's disaster preparedness and response and initiate the development of a statewide disaster continuity planning and surge capacity reserve corps resource pool. In addition, it is requested that Item 0690-006-0001 be added in the amount of $20 million to support the continuity of government and surge capacity needs during emergencies (see Attachment 1 ).

Office of Emergency Services, Public Safety Power Shutdown {PSPS) Resiliency-It is requested that Item 0690-104-0001 be added in the amount of $75 million, with provisional language, to improve resiliency of the state's critical infrastructure in response to investor-owned utility-led PSPS actions, and to be available to assist communities with critical infrastructure, where appropriate, as specific urgent needs are identified, including facilitating immediate response for providing alternative power supply and local resiliency capacity (see Attachment 2).

Department of Housing and Community Development, Community Development Block Grant-Disaster Response and Recovery-It is requested that Item 2240-001-0001 be increased by $2,002,000 and 4 positions to establish a Disaster Response and Recovery Unit to provide housing expertise in coordination with statewide disaster recovery efforts, procure a grant management system to meet audit requirements for federal Community Development Block Grant disaster assistance funds, and hire a disaster recovery consultant to assist in local needs assessments related to the 2018 Camp and Woolsey fires, as well as create local long-term recovery plan frameworks.

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State Water Resources Control Board, Emergency Response Program—It is requested that Item 3940-001-0001 be increased by $1,052,000 and 6 positions to improve emergency response capabilities between the State Water Board, regional boards, and other state entities during emergencies. These resources wili heip the State Water Board lessen the impacts of disasters on vulnerable populations by addressing a wide range of issues in the periods foilowing and between emergencies, including addressing engineering and operation issues facing drinking water systems and waste water utilities, and preventing or minimizing impacts to water quality, water supply security, and safety.

Department of Resources Recycling and Recovery, Emergency Debris Cleanup and Recovery—It is requested that Item 3970-001-0001 be added in the amount of $2,782,000 and 21.5 positions to provide ongoing resources for the Department to continue its significant role in emergency response mission tasking responsibilities (see Attachment 3). These resources wiii establish a dedicated team to heip facilitate timely, safe, and effective debris removal operations as well as to assist local governments in the preparation of Debris Removai plans for future incidents.

Emergency Medical Services Authority, Disaster Medicai Services (Issue 401)—It is requested that Item 4120-001-0001 be increased by $979,000 and 2 positions for the Emergency Medicai Services Authority to increase disaster medical preparedness, response, and recovery services, including coordination of mobiie medical assets and medical volunteers during emergency response efforts. Of the funding, $724,000 is to purchase medicai treatment and communications equipment.

Department of Public Health, Emergency Preparedness, Response, and Recovery (Issue 401)—It is requested that Item 4265-001-0001 be increased by $569,000 and 3.5 positions, and Item 4265-001-3098 be increased by $390,000 and 2.5 positions to support health care facilities and mass care shelters during emergencies as well as disaster preparedness, response, and recovery efforts. Department activities wiil inciude deployment of infection control teams and updates to an existing health care facilities mapping application.

Department of State Hospitals, Emergency Management (Issue 087)—It is requested that Item 4440-011-0001 be increased by $996,000 and 6 positions to improve emergency coordination and preparedness, and business continuity planning at the five state hospitais and Department headquarters. The additional resources will enhance the Department's ability and capacity to more effectively care for patients and coordinate staff in the event of a disaster.

Department of Social Services, Resources for Disaster Services (Issue 317)—It is requested that Item 5180-001-0001 be increased by $2,943,000 and 20 positions to support mandated disaster planning, coordination, and training activities in reiation to the Department's mass care and shelter responsibilities.

The effect of my requested action is reflected on the attachment.

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If you have any questions or need additional information regarding this matter, please call Stephen Benson, Principal Program Budget Analyst, at (916) 324-0043.

KEELY MARTIN BOSLER Director By:

VIVEK VISWANATHAN Chief Deputy Director

Attachment

cc: Honorable Anthony Portantino, Chair, Senate Appropriations Committee Attention: Mr. Mark McKenzie, Staff Director

Honorable Jim Nielsen, Vice Chair, Senate Budget and Fiscal Review Committee Attention: Mr. Kirk Feely, Budget Fiscal Director

Honorable Lorena Gonzalez, Chair, Assembly Appropriations Committee Attention: Mr. Jay Dickenson, Chief Consultant

Honorable Jay Obernolte, Vice Chair, Assembly Budget Committee Attention: Ms. Cyndi Hillery, Staff Director

Honorable Bob Wieckowski, Chair, Senate Budget and Fiscal Review Subcommittee No. 2 Honorable Richard Pan, Chair, Senate Budget and Fiscal Review Subcommittee No. 3 Honorable Maria Elena Durazo, Chair, Senate Budget and Fiscal Review Subcommittee No. 4 Honorable Nancy Skinner, Chair, Senate Budget and Fiscal Review Subcommittee No. 5 Honorable Eloise Gomez Reyes, Acting Chair, Assembly Budget Subcommittee No. 1 Honorable Richard Bloom, Chair, Assembly Budget Subcommittee No. 3 Honorable Jim Cooper, Chair, Assembly Budget Subcommittee No. 4 Honorable Shirley Weber, Chair, Assembly Budget Subcommittee No. 5 Mr. Gabriel Petek, Legislative Analyst ( 4) Mr. Christopher W. Woods, Senate President pro Tempore's Office (2) Mr. Jason Sisney, Assembly Speaker's Office (2) Ms. Jayme Chick, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Joe Shinstock, Policy and Fiscal Director, Assembly Republican Leader's Office Mr. Mark Ghilarducci, Director, Governor's Office of Emergency Services Ms. Grace Koch, Chief Deputy Director, Governor's Office of Emergency Services Ms. Tabitha Stout, Assistant Director of Administrative Services, Governor's Office of Emergency

Services Ms. Alexis Podesta, Secretary, Business, Consumer Services and Housing Agency Ms. Tiffany Garcia, Deputy Secretary, Fiscal Policy and Administration, Business, Consumer Services

and Housing Agency Mr. Ben Metcalf, Director, Department of Housing and Community Development Mr. Doug McCauley, Chief Deputy Director, Department of Housing and Community Development Mr. Jared Blumenfeld, Secretary, Environmental Protection Agency Mr. Eric Jarvis, Assistant Secretary, Environmental Protection Agency Mr. E. Joaquin Esquivel, Board Chair, State Water Resources Control Board Ms. Eileen Sobeck, Executive Director, State Water Resources Control Board Mr. Bill Damian, Assistant Deputy Director, Division of Administrative Services, State Water Resources

Control Board Mr. Scott Smithline, Director, Department of Resources Recycling and Recovery

/s/ Vivek Viswanathan

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Mr. Ken Da Rosa, Chief Deputy Director, Department of Resources Recycling and Recovery Ms. Sarah Keck, Deputy Director, Administration, Department of Resources Recycling and Recovery Ms. Nicole Clay, Budget Officer, Department of Resources Recycling and Recovery Mr. Mark Ghaly, Secretary, Health and Human Services Agency Ms. Michelle Baass, Undersecretary, Health and Human Services Agency Mr. Marko Mijic, Acting Deputy Secretary, Health and Human Services Agency Ms. Paula Villescaz, Assistant Secretary, Health and Human Services Agency Ms. Julie Souliere, Assistant Secretary, California Health and Human Services Agency Mr. Kris Kent, Assistance Secretary, Health and Human Services Agency Dr. Howard Backer, Director, California Emergency Medical Services Authority Mr. Daniel Smiley, Chief Deputy Director, California Emergency Medical Services Authority Mr. Richard Trussell, Chief of Administration, California Emergency Medical Services Authority Dr. Karen Smith, Director, California Department of Public Health Mr. Brandon Nunes, Chief Deputy Director, California Department of Public Health Ms. Susan Fanelli, Chief Deputy Director, California Department of Public Health Mr. Alan Lum, Deputy Director, Administration Division, California Department of Public Health Ms. Stephanie Clendenin, Acting Director, Department of State Hospitals Mr. Stirling Price, Acting Deputy Director, Department of State Hospitals Mr. Marcelo Acob, Chief Financial Officer, Department of State Hospitals Ms. Stacey Camacho, Budget Officer, Department of State Hospitals Ms. Pat Leary, Acting Director, Department of Social Services Ms. Karen Dickerson, Deputy Director, Administration Division, Department of Social Services Mr. Jim O'Brien, Budget Bureau Chief, Department of Social Services

Attachment 1

0690-006-0001—For support of Office of Emergency Services 20,000,000

Schedule: (1) 0380-Emergency Management Services 20,000,000

Provisions: 1. Upon order of the Department of Finance, funding in this appropriation may be transferred to

any other state entity for costs incurred related to activities performed as a result of being mission tasked by the Governor's Office of Emergency Services during a declared disaster.

2. The funds appropriated in this item, even if transferred to another item, shail be available for encumbrance or expenditure until June 30, 2022.

Attachment 2

0690-104-0001—For local assistance, Office of Emergency Services 75,000,000

Schedule: (1) 0385-Special Programs and Grant Management 75,000,000

Provisions: 1. The funds appropriated in this item are available for state operations or local assistance to

prepare for and respond to Public Safety Power Shutdown events. 2. Upon order of the Department of Finance, funds in this item may be transferred to any other

state entity, for state operations or local assistance, to assist in preparing for and responding to Public Safety Power Shutdown events.

3. The funds appropriated in this item shall be available for encumbrance or expenditure untii June 30, 2022.

Attachment 3

3970-001-0001—For support of Department of Resources Recycling and Recovery 2,782,000

Schedule: (1) 3700-Waste Reduction and Management 2,782,000





Amendment to Various Budget Bill Items and Reimbursements, Support and Local Assistance, and Trailer Bill Language, Judicial Branch

Courts of Appeal Workload-It is requested that Item 0250-001-0001 be increased by $5 million for the Courts of Appeal to address general operation cost increases, workload due to more complex litigation, new case duties related to recent law changes seeking retroactive decisions related to criminal justice reforms and changes, and voter approved initiatives requiring Courts of Appeal review.

Dependency Counsel Title IV-E Funding-It is requested that Item 0250-001-0001 be increased by $1.5 million and 7.5 positions, and Item 0250-102-0932 be amended by increasing reimbursements by $33,955,000 to enable the Judicial Council to claim reimbursable court-appointed dependency counsel costs. The recent federal Families First Prevention Services Act expanded the list of eligible Title IV-E reimbursable activities to include costs associated with court-appointed dependency counsel. The Judicial Council will be utilizing these newly available federal funds through reimbursements from the Department of Social Services (see Department of Social Services Finance Letter for federal funding request). It is also requested that provisional language be added to clarify that the $1.5 million is for the administrative costs associated with the claiming of reimbursable court-appointed dependency counsel (see Attachment 1 ).

Legal Aid for Renters in Landlord-Tenant Disputes-It is requested that Item 0250-101-0001 be increased by $20 million to provide grants to non-profit legal service organizations to assist with rental disputes between landlords and tenants. It is also requested that provisional language be added to clarify that the full $20 million must be spent on legal aid related to rental disputes between landlords and tenants (see Attachment 2).

Superior Court Judgeships-It is requested that Items 0250-101-0932 and 0250-111-0001 each be increased by $30,417,000 to fund 25 new superior court judgeships and the associated complement of positions. It is also requested that corresponding trailer bill language be amended (see Attachment 3) and provisional language be added to Item 0250-101-0932 to clarify that the allocation of judgeships will be made by the Judicial Council upon completion of the Judicial Needs Assessment (see Attachment 4).

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It is also requested that Item 9286-101-0001 be increased by $2,917,000 for accompanying trial court security costs. Trial Court Security was realigned from the state to the counties through the 2011 Public Safety Realignment, and Proposition 30 (2012) requires the state to provide annual funding for newly required activities that have an overall effect of increasing county costs in this realigned program. Per this requirement, one bailiff is allocated to support each new judgeship.

Language Access Expansion in each California Court-It is requested that Items 0250-101-0932 and 0250-111-0001 each be increased by $9,564,000 to enable the continuation of interpreter services for civil matters and to cover increased costs in criminal cases. The Judicial Council adopted a comprehensive Strategic Plan for Language Access in the California Courts in 2015, following United States Department of Justice investigations that identified an unmet federal Civil Rights Act for interpreter services to be provided free of charge in all court proceedings.

Trial Court Employee Benefits Adjustment-It is requested that Items 0250-101-0932 and 0250-111-0001 each be decreased by $3,404,000 to reflect the updated health benefit and retirement rate changes for trial court employees.

Trial Court Trust Fund Revenue Shortfall Adjustment-It is requested that Item 0250-113-0001 be decreased by $10,991,000 to reflect a reduction to the amount to backfill revenue shortfalls based on the most current estimates of Trial Court Trust Fund fee revenues for fiscal year 2019-20.

Trial Court Reserves-It is requested that trailer bill language be added to increase the cap on trial court reserves from 1 percent to 3 percent (see Attachment 5). Since 2014, trial courts have been restricted to only carrying over 1 percent or less in reserves from the prior year operating budget. In 2018-19, this equals approximately $27 million statewide. Increasing the cap enables courts to retain funding to cover immediate costs for budgeted expenses such as payroll and other ongoing operating expenses in the event of an unanticipated one-time disruption in funding, gives courts the flexibility to address local needs that are unique to certain jurisdictions, and allows courts to adjust to mid-year cost changes.


If you have any questions or need additional information regarding this matter, please call Emma Jungwirth, Principal Program Budget Analyst, at (916) 445-8913.



Attachment

cc: On following page


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Honorable Nancy Skinner, Chair, Senate Budget and Fiscal Review Subcommittee No. 5 Honorable Shirley Weber, Chair, Assembly Budget Subcommittee No. 5 Mr. Gabriel Petek, Legislative Analyst (4) Mr. Christopher W. Woods, Senate President pro Tempore's Office (2) Mr. Jason Sisney, Assembly Speaker's Office (2) Ms. Jayme Chick, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Joe Shinstock, Policy and Fiscal Director, Assembly Republican Leader's Office Mr. John Wordlaw, Chief Administrative Officer, Judicial Council of California Mr. Zlatko Theodorovic, Director and Chief Financial Officer, Budget Services,

Judicial Council of California Ms. Angela Guzman, Manager, Budget Services, Judicial Council of California

Attachment 1

Add the following provision to Item 0250-001-0001:

7. Of the funds appropriated in Schedule (3), $1,500,000 shall be available for administrative costs related to the management and claiming of federal reimbursements for court-appointed dependency counsel. To the extent these administrative costs are able to be reimbursed, any excess funding shall revert to the General Fund.

Attachment 2


4. Of the funds appropriated in Schedule (4), $20,000,000 shall be available for legal aid costs to assist with rental disputes between landlords and tenants, and any unexpended funds shall revert to the General Fund.

Attachment 3

S E C 1. Government Code section 69614.3 is amended to read:

"Upon appropriation by the Legislature, the 100 additional new judges provided for in Sections 69614 and 69614.2 shall be allocated to the various county superior courts, pursuant to the following appointment schedule:

(a) On or before June 30, 2008, 40 additional judges shall be appointed.

(b) On or after July 1, 2008, 10 additional judges shall be appointed.

(c) On or after June 1, 2009, 50 additional judges shall be appointed.

(d) Notwithstanding subdivision (c). Item 0250-101-0932 in Section 2.00 of the Budget Act of 2018 (Chapter 29, Statutes of 2018) allocates two of the 50 judgeships to the County of Riverside, effective July 1, 2018, thereby reducing the total number of judges to be allocated to 48.

(e) Notwithstandino subdivision (c), Item 0250-101-0932 in Section 2.00 of the Budget Act of 2019 allocates 25 of the 48 judgeships effective in 2019-20. therebv reducing the total number of judges to be allocated to 23."

Attachment 4


19. Of the funds appropriated in this item, $30,417,000 is to fund 25 additional judgeships. The funds shall be allocated by the Judicial Council in a manner consistent with improving equal access to the trial courts and accounting for local trial court staffing needs.

Attachment 5

" S E C 1. Government Code section 77203 is amended to read:

(a) Prior to June 30, 2014, a trial court may carry over all unexpended funds from the courts operating budget from the prior fiscal year.

(b) Commencing June 30, 2014, and concluding June 30, 2019. a trial court may carry over unexpended funds in an amount not to exceed 1 percent of the court's operating budget from the prior fiscal year. Commencing June 30, 2020. a trial court mav carrv over unexpended funds in an amount not to exceed 3 percent of the court's operating budget from the prior fiscal vear. The calculation of the 1 percent percentage authorized to be carried over from the previous fiscal year shall not include funds received by the court pursuant to the following:

(1) Section 470.5 of the Business and Professions Code.

(2) Section 116.230 of the Code of Civil Procedure, except for those funds transmitted to the Controller for deposit in the Trial Court Trust Fund pursuant to subdivision (h) of that section.

(3) Subdivision (f) of Section 13963, Sections 26731, 66006, 68090.8, 70640, 70678, and 76223, subdivision (b) of Section 77207.5, and subdivision (h) of Section 77209.

(4) The portion of filing fees collected for conversion to micrographics pursuant to former Section 26863, as that section read immediately before its repeal, and Section 27361.4.

(5) Sections 1027 and 1463.007, subdivision (a) of Section 1463.22, and Sections 4750 and 6005, of the Penal Code.

(6) Sections 11205.2 and 40508.6 of the Vehicle Code."





Amendment to Budget Bill Item 0390-001-0001, Support, and Item 0390-101-0001, Local Assistance, Contributions to the Judges' Retirement System

Mallano Lawsuit Judgment-It is requested that Item 0390-001-0001 be increased by $40 million to reflect funding for the class action lawsuit related to the Judges' Retirement System (JRS), Ma/Jana v. John Chiang (Superior Court of California, County of Los Angeles, Case No. BC-533770), to satisfy the court-ordered post-judgment award of back salaries, associated benefits, and interest related to retired judges.

Additionally, it is requested that provisional language be added to Item 0390-001-0001 to specify that any funds appropriated to this item for the Ma/Jana post-judgment settlement in excess of the amount actually required for the payment of those claims shall revert to the General Fund within 45 days after final payment has been made (see Attachment 1 ).

Judges' Retirement System Contributions-It is requested that Item 0390-101-0001 be increased by $6,226,000 to reflect an increase in state retirement contributions to JRS. Government Code section 75101 requires the state provide General Fund payments to the system in an amount equal to 8 percent of aggregate annual salaries of judges covered by the system. These changes increase General Fund costs to $219,344,000, from the $213,118,000 General Fund included in the Governor's Budget.

This increase in the state retirement contribution to JRS is due to changes in the number of retired members, and an increase in member salaries.


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If you have any questions or need additional information regarding this matter, please call Mary Halterman, Principal Program Budget Analyst, at (916) 445-327 4.



Attachment





Honorable Maria Elena Durazo, Chair, Senate Budget and Fiscal Review Subcommittee No. 4 Honorable Jim Cooper, Chair, Assembly Budget Subcommittee No. 4 Mr. Gabriel Petek, Legislative Analyst (4) Mr. Christopher W. Woods, Senate President pro Tempore's Office (2) Mr. Jason Sisney, Assembly Speaker's Office (2) Ms. Jayme Chick, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Joe Shinstock, Policy and Fiscal Director, Assembly Republican Leader's Office Mr. Justyn Howard, Deputy Secretary, Fiscal Operations, Government Operations Agency Mr. Michael Cohen, Chief Financial Officer, California Public Employees' Retirement System Ms. Jennifer Harris, Chief, California Public Employees' Retirement System Mr. Michael Siu, Budget Manager, California Public Employees' Retirement System


Attachment 1

Add the following provisions to Item 0390-001-0001:

2. Of the amount appropriated in this item, $40,000,000 shall be available for payment of the post judgment award in Robert M. Mallano, Individually, and Behalf of a Class of Similarly Situated Persons v. John Chiang, Controller of the State of California (Superior Court of California, County of Los Angeles, Case No. BC-533770).

3. Any funds appropriated pursuant to Provision 2 of this item, in excess of the amount actually required, shall revert to the General Fund within 45 days after final payment is made.





Amendment to Budget Bill Items 0509-001-0001 and 0509-001-0649, Support, and Trailer Bill Language, Governor's Office of Business and Economic Development

Office of Small Business Advocate-It is requested that Item 0509-001-0001 be increased by $806,000 and 3 positions to provide permanent resources to support the core duties of the Office of Small Business Advocate (OSBA). The OSBA serves as the lead office in providing small businesses in California with the information and resources necessary to operate in the market, and serves as the principal advocate in the state on behalf of small businesses. This request will provide the resources necessary to continue to administer a technical assistance expansion program and expand OSBA's approach in addressing the specific needs of small businesses in varying regions. In addition, this request will make a net zero technical change to properly align positions and funding.

International Trade Program Specialists-It is requested that Item 0509-001-0001 be increased by $592,000 and 3 positions to support ongoing workload within the International Affairs and Business Unit. This unit is the state's primary point of contact for expanding California's international trade and investment relations, and provides critical support on issues relating to international trade and investment opportunities, foreign relations, and international agreements and partnerships with the countries that have a relationship with California. This request will support those efforts.

California Infrastructure and Economic Development Bank (I Bank) Credit Officer-It is requested that Item 0509-001-0649 be increased by $263,000 and 1 position to establish a credit officer to manage, organize, and lead the efforts of all I Bank programs within the Loan and Bond Financing Units. This position is critical for I Bank to maintain its AAA bond rating.

Governor's Office of Economic Impact-It is requested that trailer bill language be added to change the Governor's Office of Business and Economic Development (GO-Biz) name to the Governor's Office of Economic Impact (OEI) (see Attachment 1 ). This change is necessary to reduce confusion and make clear that the organization is the economic development office for the state that helps businesses identify the advantages of considering California locations for business relocation and expansion, versus being a business regulatory and oversight entity.

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If you have any questions or need additional information regarding this matter, please call Clint Kellum, Assistant Program Budget Manager, at (916) 445-8913.



Attachment





Honorable Maria Elena Durazo, Chair, Senate Budget and Fiscal Review Subcommittee No. 4 Honorable Jim Cooper, Chair, Assembly Budget Subcommittee No. 4 Mr. Gabriel Petek, Legislative Analyst (4) Mr. Christopher W. Woods, Senate President pro Tempore's Office (2) Mr. Jason Sisney, Assembly Speaker's Office (2) Ms. Jayme Chick, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Joe Shinstock, Policy and Fiscal Director, Assembly Republican Leader's Office Mr. Lenny Mendonca, Director, Governor's Office of Business and Economic Development Mr. Chris Dombrowski, Chief Deputy Director, Governor's Office of Business and Economic Development

Ms. Maral Farsi, Deputy Director, Legislative and Inter-Governmental Affairs, Governor's Office of Business and Economic Development

Mr. James Teahan, Chief, Administrative Services Division, Governor's Office of Business and Economic Development

Ms. Jenifer Henneke, Manager, Administrative Services Division, Governor's Office of Business and Economic Development


Attachment 1 (Page 1 of 32)

Section 14003 of the Corporations Code is amended to read: (e) "California Small Business Finance Center" means the governmental unit within the bank, which is located within the Governor's Office of Business and Economic Development, Impact, with the administrative responsibility for the programs and activities authorized pursuant to Section 8684.2 of the Government Code, the Small Business Financial Assistance Act of 2013 (Chapter 6 (commencing with Section 63088) of Division 1 of Title 6.7 of the Government Code), and this chapter.

Section 25249.14 of the Health and Safety Code is amended to read: The Governor's Office of Business and Economic Development Impact shall post in a conspicuous location on its Internet Web site, and include with any informational materials provided to businesses relating to a business's obligations under state law, a disclaimer that states the following: Proposition 65, officially known as the Safe Drinking Water and Toxic Enforcement Act of 1986, requires businesses to provide a clear and reasonable warning before knowingly and intentionally exposing anyone to chemicals that are known to the state to cause cancer or birth defects or other reproductive harm. It is important to know that a product that receives certification from the United States Food and Drug Administration, or another federal agency or state agency, is not necessarily exempt from California requirements for chemical exposure warnings. Businesses should be aware of the levels of harmful chemicals in their products and of applicable Proposition 65 requirements. For more information on Proposition 65 and how to comply with its requirements, please visit https://oehha.ca.gov.

Section 38591.3 of the Health and Safety Code Is amended to read: (a) No later than January 1, 2019, the California Workforce Development Board, in consultation with the state board, shall report to the Legislature on the need for increased education, career technical education, job training, and workforce development resources or capacity to help industry, workers, and communities transition to economic and labor-market changes related to statewide greenhouse gas emissions reduction goals, pursuant to Sections 38550 and 38566, and the scoping plan, adopted pursuant to Section 38561. The California Workforce Development Board shall ensure that the report aligns, as appropriate, with California's Unified Strategic Workforce Development Plan, developed by the California Workforce Development Board. The California Workforce Development Board and the state board shall work in consultation with all of the following: (1) State Department of Education. (2) California Community Colleges. (3) Trustees of the California State University. (4) Regents of the University of California. (5) Governor's Office of Business and Economic Development Impact. (6) Interested stakeholders.

Section 40448.6 of the Health and Safety Code Is amended to read: The Legislature hereby finds and declares all of the following: (e) The Governor's Office of Business and Economic Development Impact, through the small business financial development corporations established pursuant to Chapter 1 (commencing with Section 14000) of Part 5 of Division 3 of Title 1 of the Corporations Code, has the ability to provide state loan guarantees and technical assistance to small businesses needing financial assistance.

Section 44272 of the Health and Safety Code Is amended to read: (g) The commission may do all of the following: (1) Contract with the Treasurer to expend funds through programs implemented by the Treasurer, if the expenditure is consistent with all of the requirements of this article and Article 1 (commencing with Section 44270).


(2) Contract with small business financial development corporations established by the Governor's Office of Business and Economic Impact Development to expend funds through the Small Business Loan Guarantee Program if the expenditure is consistent with all of the requirements of this article and Article 1 (commencing with Section 44270). (3) Advance funds, pursuant to an agreement with the commission, to any of the following: (A) A public entity. (B) A recipient to enable it to make advance payments to a public entity that is a subrecipient of the funds and under a binding and enforceable subagreement with the recipient. (C) An administrator of a block grant program.

Section 8684.2 of the Government Code is amended to read: (e) The California Infrastructure and Economic Development Bank, which is located within the Governor's Office of Business and Economic Impact Development, may adopt directives and requirements to implement the disaster loan guarantee program authorized by this section.

Section 11148.5 of the Government Code is amended to read: (e) A state agency that significantly regulates small business or that significantly impacts small business shall notify the Office of Small Business Advocate within the Governor's Office of Business and Economic Impact Development and the Department of General Services of each of the following: (1) The name and contact information of the person or persons who have been designated as the agency's small business liaison, on or before March 1, 2018. (2) An occurrence of a vacancy in the position of small business liaison, within 15 working days of the occurrence of the vacancy. The state agency shall designate a small business liaison within three months after providing notice of the vacancy.

Section 12096.1 of the Government Code is amended to read: For purposes of this chapter: (a) "Office" means the Governor's Office of Business and Economic Impact Development. (b) "Director" means the Director of the Governor's Office of Business and Economic Impact Development.

Section 12096.2 of the Government Code is amended to read: (a) The Governor's Office of Business and Economic Impact Development, also known as "60 -Bk O.E.I.." is hereby established in state government within the Governor's office. The office shall be under the direct control of a director, who shall be responsible to the Governor. (b) The Governor shall appoint the Director of the Governor's Office of Business and Economic Impact Development who shall perform all duties, exercise all powers, assume and discharge all responsibilities, and carry out and effect all purposes vested by law in the office, including contracting for professional or consultant services in connection with the work of the office. (c) The salary of the Director of the Governor's Office of Business and Economic Impact Development shall be fixed pursuant to Section 12001. (d) Wherever any reference to the "Governor's Office of Business and Economic Development." or "GO-Biz." appears in any statute, regulation, contract, or grant agreement, or in any other code, the reference shall be deemed to refer to the Governor's Office of Economic Impact.

Section 12096.5 of the Government Code is amended to read: (a) The California Business Investment Services Program is hereby created within the Governor's Office of Business and Economic Impact Development. (b) The program shall be under the direct authority of the director. (c) The purpose of the program is to serve employers, corporate executives, business owners, and site location consultants who are considering California for business investment and expansion.


(d) In implementing the program, the director shall establish and implement a process for convening teams on key business development situations, including, but not limited to, attracting new businesses, relocation of large manufacturers, or the closure of a large business employer. (e) In implementing the program, the director shall work cooperatively with local, regional, federal, and other state public and private marketing institutions and trade organizations in attracting, retaining, and helping businesses grow and be successful in California.

Section 12097 of the Government Code is amended to read: (a) The Permit Assistance Program is hereby created within the Governor's Office of Business and Economic Impact Development. (b) The program shall do all of the following: (1) Provide permitting and regulatory compliance assistance to businesses. (2) Assist businesses in accessing information and resources related to permitting and regulatory compliance. (3) Provide mediation and third-party neutral facilitation to resolve conflicts between applicants and permitting and regulatory entities. (4) Work with federal, state, regional, and local permitting and regulatory entities to exchange best practices and implement improvements to modernize permitting processes. (5) Manage and regularly update the office's Internet Web site pursuant to Section 12097.1. (c) The program shall work cooperatively with local, regional, federal, and other state public agencies and private sector business and economic development organizations. (d) Notwithstanding Section 10231.5, the Governor's Office of Business and Economic Impact Development shall report to the Governor and the Legislature annually on the activities and outcomes of the program.

Section 12097.5 of the Government Code is amended to read: (a) (1) The Governor's Office of Business and Economic Impact Development is hereby authorized to develop content on its Internet Web site or through other mediums to be used for public dissemination, through outreach activities, in order to provide information and resources to inform the general public about place-based and other geographically targeted economic development programs, including, but not limited to, federal Promise Zones within California that are designated by the United States Department of Housing and Urban Development; and Opportunity Zones designated by the United States Treasury, pursuant to Sections 1400Z-1 and 1400Z-2 of the Internal Revenue Code. (2) The information and resources shall include, but not be limited to, how the local jurisdictions or census tracts were created, where locals and investors may get additional information, and updates regarding federal programs as that information becomes available. (b) The Governor's Office of Business and Economic Impact Development shall convene, at least annually, representatives from various programs and agencies across the state and from various federal programs and agencies for the purpose of discussing how California can leverage Promise Zones and Opportunity Zones to meet state and local community and economic development needs. The convention topics shall include, but not be limited to, discussions on enhanced engagement opportunities and targeted outreach to assist designated areas in their efforts to access state resources and services. (c) As used in this section: (1) "California Opportunity Zone" means a census tract in this state that has been designated by the United States Treasury as an Opportunity Zone, pursuant to Sections 1400Z-1 and 1400Z-2 of the Internal Revenue Code. (2) "California Promise Zone" means a community in this state that has been designated by the United States Department of Housing and Urban Development as a Promise Zone.


Section 12098 of the Government Code is amended to read: (a) The Legislature finds and declares that: (1) Small businesses serve as economic engines to the California economy by being the most effective net new job generators, supporting California's access to global markets, serving as a key tool for supporting upward mobility, and helping to distribute economic benefits throughout the state. (2) It is in the public interest to aid, counsel, assist, and protect, insofar as is possible, the interests of small business concerns in order to preserve free competitive enterprise and maintain a healthy state economy. (b) In order to advocate the causes of small business and to provide small businesses with the information they need to survive in the marketplace, there is created within the Governor's Office of Business and Economic Impact Development the Office of Small Business Advocate, which shall be led by the Small Business Advocate. (c) The Small Business Advocate shall be considered an advisor on key issues before the state, and the inclusion of the Small Business Advocate in cabinet- and department-level discussions that potentially impact small businesses is encouraged.

Section 12098.4 of the Government Code Is amended to read: (c) (1) The advocate may establish a centralized interactive telephone referral system and Internet Web site to assist small and minority businesses in their operations, including governmental requirements, such as taxation, accounting, and pollution control, and to provide information concerning the agency from which more specialized assistance may be obtained. (2) The advocate shall post on the GO-Biz O.E.I. Internet Web site or the advocate's Internet Web site: (A) Information on how to receive assistance in identifying and understanding the state's regulatory requirements. This information shall include: (i) The name, telephone number, Internet Web site, and email of the small business liaison designated pursuant to Section 11148.5 to assist small businesses with understanding and adhering to the regulatory requirements of the state entities in which they serve. (ii) The Internet Web site developed and maintained by GO-Biz O.E.I, to identify licensing, permitting, and registration requirements of state agencies, pursuant to the requirements of Section 12097.1 (B) Information on how to receive assistance in certifying as a small business and identifying and participating in state procurement opportunities. This information shall include: (i) The name, telephone number, Internet Web site, and email of the small business advocate designated pursuant to Section 14846 to assist small businesses in contracting with the state entities in which they serve. (ii) Contact information for the Office of Small Business and Disabled Veteran Business Enterprise Services established pursuant to Section 14839. (C) Information about emergency preparedness, responses to emergencies, and recovery strategies for small businesses. This information shall be developed and updated in consultation with relevant state agencies and emergency responders. (D) A link to the Energy Upgrade California Internet Web site to assist small business owners in accessing information on the availability of various programs promoting the efficient use of energy. (E) Information on programs administered through the statewide network of small business financial development corporations. Programs covered shall include loan guarantees, direct lending, surety bond guarantees, and disaster loans. Information shall be presented in a manner appropriate to address the needs of both small businesses and existing and potential financial institutions and financial companies.


(F) Information on how to identify and access services provided through the statewide network of small business technical assistance centers, including, but not limited to, small business development centers, women business centers, veteran business outreach centers, procurement technical assistance centers, and the Manufacturing Extension Partnership.

Section 12098.7 of the Government Code Is amended to read: Notwithstanding any other law, effective June 30, 2014, the Economic Adjustment Assistance Grant funded through the United States Economic Development Administration under Title IX of the Public Works and Economic Development Act of 1965 (Grant No. 07-19-02709 and 07-19-2709.01) shall be transferred to the Valley Economic Development Center, Inc. The State of California is the dismissed grantee and the Valley Economic Development Center, Inc., shall be the successor grantee. All responsibilities and authorities associated with these funds shall be transferred from the Governor's Office of Business and Economic Impact Development to the Valley Economic Development Center, Inc., pursuant to the terms and conditions agreed to by all parties, including the United States Economic Development Administration, the Governor's Office of Business and Economic Impact Development, and the Valley Economic Development Center, Inc., pursuant to the Offer and Acceptance of Award Amendment For Transfer of Award entered into by the parties on June 17, 2014.

Section 12098.10 of the Government Code is amended to read: (a) The Made in California Program, a public and private collaboration, is hereby created within the Governor's Office of Business and Economic Impact Development. The purposes of the program are to encourage consumer product awareness and to foster purchases of high-quality products made in this state.

Section 12099 of the Government Code is amended to read: The Legislature finds and declares all of the following: (a) Job creation through rapid technology commercialization is a vital part of the state's economic well-being, as identified in a January 2012 symposium held by the Brookings Institute. (b) Innovation and tech-driven entrepreneurial activity coupled with venture investment creates small business startups and expansions at an accelerated rate, which leads to significant employment opportunities that contribute to the state's financial health and economic competitiveness. (c) In order to maintain a healthy state economy and to aid communities, entrepreneurship and technology-based small businesses must be stimulated and supported. (d) The Innovation Hubs (iHubs) are operated in California through a cooperative agreement between the Governor's Office of Business and Economic Impact Development (GO-Biz) and geographically distinct regions, all of which are partnered with public universities, community college districts, local governments, research institutions, industry, angel and venture capital networks, and traditional financial institutions. The iHubs are California's premier resource for facilitating the success of entrepreneurial and small technology startups that can grow California's economy by assisting business owners in creating and retaining jobs, increasing sales and profits, securing business financing, and creating a successful new business climate in the state. (e) The iHubs' economic impact in fostering entrepreneurial business activity leads to job creation and an innovation in the economy by establishing a formal partnership between the office and the iHub program. (f) It is necessary to establish a fund that would enable the office to obtain funding from private sources, for appropriation to state designated iHubs, iHub partner organizations, and within state iHub-designated regions for the purpose of establishing, promoting, and enhancing California's innovation and entrepreneurship ecosystem.


Section 12099.1 of the Government Code is amended to read: (a) The California Innovation Hub Program is hereby created within the office. (b) The office shall designate Innovation Hubs within the state to stimulate partnerships, economic development, and job creation by leveraging assets to provide an innovation platform for startup businesses, economic development organizations, business groups, and venture capitalists. The assets may include, but are not limited to, research parks, technology incubators, universities, and federal laboratories. (c) The office shall oversee, coordinate, and provide assistance to each iHub.

Section 12099.2 of the Government Code is amended to read: For purposes of this article, the following terms shall be defined as follows: (a) "Applicant" means one or more entities that submit an application to GO-Biz O.E.I. Eligible applicants shall be one or more of the following: (1) A fully accredited institution of higher education. (2) A private nonprofit corporation engaged in economic development activities. (3) A county or municipality in this state that has a preexisting economic development department or program or both. (4) A public economic development institution such as a workforce investment board or an economic development corporation. (b) "Innovation Hub" or "iHub" means a partnership between interrelated firms, local governments, economic development organizations, educational entities, and industries that collectively drive economic growth within a defined geographic area. (c) "iHub coordinator" means the individual or entity agreed to by the iHub partnership that is responsible for all of the following: (1) Implementing the objectives of the iHub. (2) Serving as the primary agent responsible for coordinating services and resources and maintaining the iHub partnership. (3) Serving as the primary liaison to the state and the office.

Section 12099.7 of the Government Code Is amended to read: The Innovation Accelerator Account is hereby created within the California Economic Development Fund in the State Treasury. Subject to the approval of the Department of Finance, all moneys collected and received by the Governor's Office of Business and Economic Impact Development for California Innovation Initiatives from gifts, bequests, or donations shall be deposited in the Innovation Accelerator Account. Notwithstanding Section 13340, the moneys in the account are continuously appropriated to the office to be used for California Innovation Initiatives pursuant to the terms of the gift, bequest, or donation.

Section 12100.62 of the Government Code is amended to read: Unless the context otherwise requires, the following definitions in this section shall govern the construction of this article: (a) "California Small Business Development Center Program" is comprised of the five regional networks of small business development centers operating in the state pursuant to a cooperative agreement between the fiscal agent and the federal Small Business Administration. (b) "Committed nonstate local cash match" means funding awarded by a nonstate local source to a federal small business technical assistance center through a letter of intent, notice of award, or cash deposit. (c) "Director" means the Director of the Governor's Office of Business and Economic Impact Development. (d) "Federal small business technical assistance center" means an organization that contracts with a federal funding partner to operate a small business development center, a women's business center, a veterans business outreach center, a manufacturing extension partnership


center, a minority business development center, a procurement technical assistance center, or a similar program within this state to support small businesses. (e) "Federal funding partner" means the federal Small Business Administration, federal Department of Commerce, federal Department of Defense, or any other federal agency with the authority to administer a small business technical assistance program in this state. (f) "Fiscal agent" means the entity with which a federal funding partner contracts to administer small business technical assistance programs within a state or district. The fiscal agent shall be directly accountable to the federal funding partner for all aspects of the specified small business technical assistance program, including staffing, programming, outreach, securing any required matching funds to draw down federal funds, and reporting performance outcomes to operate the program in the fiscal agent's area of responsibility. (g) "GO-Biz O.E.I." or "office" means the Governor's Office of Business and Economic Impact Development. (h) "Local cash match" means nonfederal funds that are spent on eligible program costs.

Section 12100.63 of the Government Code is amended to read: (f) The office shall administer the program to provide grants to expand the capacity of small business development technical assistance programs in California, administered by and primarily funded by federal agencies, that provide one-on-one confidential consulting and training to small businesses and entrepreneurs in this state. An applicant shall be eligible to participate in the program if the office determines that the applicant meets all of the following criteria: (1) At the time of applying for funds, the applicant has an active contract with a federal funding partner to administer a program in this state, or has received a letter of intent from a federal funding partner to administer a federal small business technical assistance center program in this state within the next fiscal year. (2) (A) The applicant provided a plan of action and commitment to fully draw down all of the federal funds available using local cash match and state funds not described in Section 12100.65 during the duration of the award period. GO-Biz O.E.I, may request that the applicant provide details relating to the source and amount of these nonstate local match funds. (B) If the applicant is a new federal small business technical assistance center, the applicant has demonstrated the ability to fully draw down substantially all federal funds available to it.

Section 13995.20 of the Government Code is amended to read: Unless the context othenvise requires, the definitions in this section govern the construction of this chapter. (a) "Appointed commissioner" means a commissioner appointed by the Governor pursuant to paragraph (2) of subdivision (b) of Section 13995.40. (b) "Assessed business" means a person required to pay an assessment pursuant to this chapter, and until the first assessment is levied, any person authorized to vote for the initial referendum. An assessed business shall not include a public entity or a corporation when a majority of the corporation's board of directors is appointed by a public official or public entity, or serves on the corporation's board of directors by virtue of being elected to public office, or both. (c) "Commission" means the California Travel and Tourism Commission. (d) "Director" means the Director of the Governor's Office of Business and Economic Impact Development. (e) "Elected commissioner" means a commissioner elected pursuant to subdivision (d) of Section 13995.40. (f) "Industry category" means the following classifications within the tourism industry: (1) Accommodations. (2) Restaurants and retail. (3) Attractions and recreation. (4) Transportation and travel services, other than passenger car rental.


(5) Passenger car rental. (g) "Industry segment" means a portion of an industry category. For example, motor home rentals are an industry segment of the transportation and travel services industry category. (h) "Maximum assessment" means a dollar amount, adopted by the commission, over which an assessed business shall not be required to pay. The commission may adopt differing amounts of maximum assessment for each industry category or industry segment. (i) "Office" means the Office of Tourism, also popularly referred to as the Division of Tourism, within the Governor's Office of Business and Economic Impact Development. (j) "Person" means an individual, public entity, firm, corporation, association, or any other business unit, whether operating on a for-profit or nonprofit basis, (k) "Referendum" means any vote by mailed ballot of measures recommended by the commission and approved by the director pursuant to Section 13995.60, except for the initial referendum, which shall consist of measures contained in the selection committee report, discussed in Section 13995.30. (I) "Selection committee" means the Tourism Selection Committee described in Article 3 (commencing with Section 13995.30).

Section 13995.102 of the Government Code Is amended to read: (i) The Los Angeles Convention and Visitors Bureau shall be asked to supply staff support to the county selection committee. The Governor's Office of Business and Economic Impact Development shall not be required to supply staff support to the county selection committee.

Section 13995.110 of the Government Code is amended to read: (a) No referendum required under this article shall be undertaken until any of the following occurs, whichever is earliest: (1) A statewide referendum held pursuant to this chapter has obtained a passing vote in the County of Los Angeles. (2) Two statewide referenda have been held pursuant to this chapter. (3) July 1, 1998. (b) Referenda required under this article shall be conducted in a similar manner as provided in Article 6 (commencing with Section 13995.60) as follows: (1) The county commission shall undertake all duties, and act in all respects, in place of the California Tourism Marketing Commission, and either the county or the county treasurer/tax collector, as designated in this article, shall act in place of the Director of the Governor's Office of Business and Economic Impact Development. (2) The initial assessment target for the county commission shall be set by the county selection committee. (3) The first referendum shall be initiated by industry members, with all costs of marketing and promoting of the initial referendum to be provided by the tourism industry. (4) Each referendum may cover one or more of the following subjects: (A) Assessment level based upon specified assessment formula. (B) Amended industry segment allocation formulae. (C) Percentage allocation of assessments between industry categories and segments. (D) Election of county commissioners subject to election by referendum. (E) Termination of the county commission. (F) Whether to establish, continue, or reestablish an assessment. (5) The costs of all marketing and promoting of all referenda following the initial referendum shall be paid by the county commission from assessments collected. The county commission may reimburse those who have contributed to the costs of the initial referendum from proceeds raised from assessments collected from the initial referendum.


Section 13995.116 of the Government Code is amended to read: This article is subject to Article 8 (commencing with Section 13995.80) and Article 9 (commencing with Section 13995.90) except that, as to Article 8, either the county or the county treasurer/tax collector, as designated in this article, shall act in the place of the Director of the Governor's Office of Business and Economic Impact Development in all respects.

Section 13996.41 of the Government Code is amended to read: (a) The Governor's Office of Business and Economic Impact Development shall develop and implement an International Trade and Investment Program that does all of the following: (1) Attracts employment-producing direct foreign investment to the state. (2) Provides support for California businesses in accessing international markets, including assistance to increase California exports. (3) Engages in other international trade or foreign investment activities assigned by the Governor. (b) The Director of the Governor's Office of Business and Economic Impact Development may establish and terminate international trade and investment offices outside of the United States as he or she determines is appropriate if the requirements of Section 13996.65 are satisfied. (c) This section shall not be construed to confer powers or impose duties upon the Governor's Office of Business and Economic Impact Development that conflict with any powers conferred or duties imposed upon the Department of Food and Agriculture with respect to the promotion of California agriculture, fish, or forest exports. (d) The Governor's Office of Business and Economic Impact Development shall develop a conflict-of-interest and gift policy that applies to the Governor's Office of Business and Economic Impact Development and all international trade and investment offices established by it. (e) Any international trade and investment office established by the Governor's Office of Business and Economic Impact Development may be funded in whole or in part by nonstate funds. (f) The Governor's Office of Business and Economic Impact Development may contract with a nonprofit entity to operate an international trade and investment office. The contract shall, among other provisions, require the nonprofit entity to provide the Governor's Office of Business and Economic Impact Development information sufficient to satisfy the reporting requirements in subdivision (c) of Section 13997 within 30 days of receipt by the nonprofit entity of each donation used to fund an international trade and investment office.

Section 13996.42 of the Government Code Is amended to read: The Governor's Office of Business and Economic Impact Development may establish an international trade and investment office outside of the United States if both of the following conditions are met: (a) The country where an international trade and investment office would be located is among those with the greatest potential for direct foreign investment in California, export growth, or both, as determined by the director. (b) The Director of the Governor's Office of Business and Economic Impact Development has included the new international trade and investment office in the Governor's Office of Business and Economic Impact's Development's current annual program budget and strategy and business plan for the year for the International Trade and Investment Program as required by Section 13996.65.

Section 13996.55 of the Government Code Is amended to read: (a) The Director of the Governor's Office of Business and Economic Impact Development shall provide to the Legislature, not later than July 1, 2019, a strategy for international trade and investment that, at a minimum, includes all of the following:


(1) Policy goals, objectives, and recommendations necessary to implement a comprehensive international trade and investment program for the state. This information shall be provided in a fashion that clearly indicates priority within the overall strategy. (2) Measurable outcomes and timelines for the goals, objectives, and actions for the international trade and investment program. (3) Identification of impediments for achieving goals and objectives. (4) Identification of key stakeholder partnerships that will be used in implementing the strategy. (5) Identification of options for funding recommended actions. (6) A current organizational structure for the state administration of international trade and investment policies, programs, and services. The organizational chart may include other state entities that are related to achieving the goals, objectives, and actions identified in the strategy. (b) (1) The strategy shall be based on current and emerging market conditions and the needs of investors, businesses, and workers to be competitive in global markets. (2) The strategy shall identify the process the Governor's Office of Business and Economic Impact Development will use to evaluate on an ongoing basis, as appropriate, current workforce, infrastructure, research and development, and other needs of small and large firms, including, but not limited to, highways, logistic hubs, and rail that link businesses with the state's ports of entry and foreign and domestic markets. (3) The strategy may, to the extent relevant and feasible, be based on existing studies and reports, including, but not limited to, the Goods Movement Action Plan, the California Strategic Workforce Development Plan, the California Export of Recycled Materials Report, the California Five-Year Infrastructure Plan, and the Environmental Goals and Policy Report. (c) The strategy shall be submitted to the Chief Clerk of the Assembly and the Secretary of the Senate and a notice of its submittal shall be provided to the Speaker of the Assembly, the President pro Tempore of the Senate, and the chairs of the Assembly Committee on Jobs, Economic Development, and the Economy and the Senate Committee on Business, Professions and Economic Development, or the successor committees with jurisdiction over international trade and economic development programs. (d) The strategy shall be updated pursuant to the procedures of this section at least once every five years.

Section 13996.75 of the Government Code Is amended to read: The Controller shall not allocate any state funds to the Governor's Office of Business and Economic Impact Development for international trade and investment activities if the strategy for international trade and investment has not been submitted to the Legislature pursuant to subdivision (a) of Section 13996.55 and subdivision (b) of Section 13996.65 by May 1, 2014.

Section 13997 of the Government Code Is amended to read: (a) With respect to international trade and investment offices funded in whole or in part by nonstate funds pursuant to subdivision (e) of Section 13996.41, all of the following shall apply: (1) The Governor's Office of Business and Economic Impact Development may accept nonstate moneys, including, but not limited to, federal and private sector funds, for the purposes of operating any international trade and investment office, subject to Title 9 (commencing with Section 81000). A donor shall not donate more than 25 percent of the annual budget of an international trade and investment office in a calendar year. The donor may specify the international trade and investment office for which the private sector moneys shall be used. The private sector moneys shall be deposited in the Economic Development and Trade Promotion Account, which is hereby established in the Special Deposit Fund (Art. 2 (commencing with Section 16370), Ch. 2, Ft. 2, Div. 4) within the State Treasury. Notwithstanding Section 13340, the Director of the Governor's Office of Business and Economic Impact Development may expend moneys in the Economic Development and Trade Promotion Account, without regard to fiscal year, for the purposes of this subdivision. Moneys in the Economic Development and Trade Promotion Account may be allocated to an international trade and investment office, and


if so allocated shall be maintained by that office in an account. Records of donations received and expenditures made pursuant to this section shall be subject to public disclosure. (2) For each donation that it receives to fund an international trade and investment office, the Governor's Office of Business and Economic Impact Development shall post a report on its Internet Web site within 30 days of receiving that donation. The report shall contain all of the following information: name and address of the donor; amount of the donation; date the donation was made; name and address of the entity receiving or using the donation; a brief description of the goods or services provided or purchased, if any; and a description of the specific purpose or event for which the donation was made, if any. (b) The Governor's Office of Business and Economic Impact Development may accept private moneys for the purposes of promoting international trade and investment events subject to Title 9 (commencing with Section 81000). The donor may specify the international trade and investment event for which the private sector moneys shall be used. (1) The private sector moneys shall be deposited into the Economic Development and Trade Promotion Account. Notwithstanding Section 13340, the Director of the Governor's Office of Business and Economic Impact Development may expend moneys in the Economic Development Trade Promotion Account without regard to fiscal year, for purposes of this subdivision. Records of donations received and expenditures made pursuant to this section shall be subject to public disclosure. (2) For each donation that it receives to fund international trade and investment events, the Governor's Office of Business and Economic Impact Development shall post a report on its Internet Web site within 30 days of receiving that donation. The report shall contain the following information: name and address of the donor; amount of the donation; date the donation was made; name and address of the entity receiving or using the donation; a brief description of the goods or services provided or purchased, if any; and a description of the specific purpose or event for which the donation was made, if any. (c) With respect to international trade and investment offices operated under contract with a nonprofit entity pursuant to subdivision (f) of Section 13996.41: (1) A donor shall not donate more than 25 percent of the annual budget of an international trade and investment office in a calendar year. (2) For each donation that it receives to fund an international trade and investment office, the Governor's Office of Business and Economic Impact Development shall post a report on its Internet Web site within 30 days of receiving that donation. The report shall contain the following information: name and address of the donor; amount of the donation; date the donation was made; name and address of the entity receiving or using the donation; a brief description of the goods or services provided or purchased, if any; and a description of the specific purpose or event for which the donation was made, if any. (d) Nothing in this section shall affect any requirement of the Political Reform Act (Title 9 (commencing with Section 81000)).

Section 13997.6 of the Government Code is amended to read: (a) The California Economic Development Fund is hereby created in the State Treasury for the purpose of receiving federal, state, local, and private economic development funds, and receiving repayment of loans or grant proceeds and interest on those loans or grants. (b) Upon appropriation by the Legislature, moneys in the fund may be expended by the Governor's Office of Business and Economic Impact Development to provide matching funds for loans or grants to public agencies, nonprofit organizations, and private entities, and for other economic development purposes, consistent with the purposes for which the moneys were received.

Section 14998.2 of the Government Code is amended to read: (a) There is in the Governor's Office of Business and Economic Impact Development, the California Film Commission. The commission shall have a Board of Commissioners consisting


of 26 members. The Governor shall appoint 13 members, the Senate Committee on Rules shall appoint four members, the Speaker of the Assembly shall appoint four members, and five members shall be ex officio. The members of the board appointed by the Governor may include representatives of state and local government, motion picture development companies, employee and professional organizations composed of persons employed in the motion picture industry, and other appropriate members of this or related industries. All members of the board, except legislators who are appointed either by the Senate Committee on Rules or by the Speaker of the Assembly, shall serve at the pleasure of the appointing authority for a term of two years from the effective date of the appointment.

Section 14998.3 of the Government Code Is amended to read: (a) The board shall submit a list of recommended candidates for the position of Director of the California Film Commission to the Governor for consideration. The Governor shall appoint the director. (b) The director of the commission shall receive a salary to be determined by the Department of Human Resources. (c) The director of the Governor's Office of Business and Economic Impact Development, or his or her designee, shall act as the director during the absence from the state or other temporary absence, disability, or unavailability of the director, or during a vacancy in that position.

Section 14998.4 of the Government Code Is amended to read: (a) The board shall meet at least three times per year and shall select a chairperson and a vice chairperson from among its members. The vice chairperson shall act as chairperson in the chairperson's absence. (b) Each member of the board shall serve without compensation but shall be reimbursed for traveling outside the county in which he or she resides to attend meetings. (c) The board shall work to encourage media production in California and to that end, shall exercise all of the powers provided in this chapter. (d) The board shall make recommendations to the Legislature, the Governor, the Governor's Office of Business and Economic Impact Development, and other state agencies on legislative or administrative actions that may be necessary or helpful to maintain and improve the position of the state's motion picture industry in the national and world markets. (e) In addition, subject to the provision of funding appropriated for these purposes, the board shall do all of the following: (1) Adopt guidelines for a standardized permit to be used by state agencies and the director. (2) Approve or modify the marketing and promotion plan developed by the director pursuant to subdivision (d) of Section 14998.9 to promote filmmaking in the state. (3) Provide expertise in promotional activities. (4) Hold hearings, as needed. (5) Adopt its own operational rules and procedures. (6) Counsel the Legislature and the Governor on issues relating to the media production industry.

Section 14998.7 of the Government Code Is amended to read: Any funds appropriated to, or for use by, the commission for purposes of this chapter, shall be under the control of the Director of the Governor's Office of Business and Economic Impact Development or his or her designee.

Section 15363.62 of the Government Code Is amended to read: For purposes of this chapter, the following meanings shall apply: (a) "Film" means any commercial production for motion picture, television, commercial, or still photography.


(b) "Film costs" means the usual and customary charges by a public agency connected with the production of a film, limited to any of the following: (1) State employee costs. (2) Federal employee costs. (3) Federal, state. University of California, and California State University permits and rental costs. (4) Local public entity employee costs. (5) Local property use fees. (6) Rental costs for equipment owned and operated by a public agency in connection with the film. (c) "Fund" means the Film California First Fund, established pursuant to Section 15363.74. (d) "Office" means the Governor's Office of Business and Economic Impact Development, which includes the California Film Commission. (e) "Production company" means a company, partnership, or corporation, engaged in the production of film. (f) "Program" means the Film California First Program established pursuant to this chapter. (g) "Public agency" means any of the following: (1) The State of California, and any of its agencies, departments, boards, or commissions. (2) The federal government, and any of its agencies, departments, boards, or commissions. (3) The University of California. (4) The California State University. (5) California local public entities. (6) Any nonprofit corporation acting as an agent for the recovery of costs incurred by any of the entities listed in this subdivision.

Section 51298 of the Government Code is amended to read: It is the intent of the Legislature in enacting this chapter to provide local governments with opportunities to attract large manufacturing facilities to invest in their communities and to encourage industries, such as high technology, aerospace, automotive, biotechnology, software, environmental sources, and others, to locate and invest in those facilities in California, (b) For purposes of this section: (1) "Qualified manufacturing facility" means a proposed manufacturing facility that meets all of the following criteria: (A) The proponent's initial investment in that facility, in real and personal property, necessary for the full and normal operation of that facility, made pursuant to the capital investment incentive program, that comprises any portion of that facility or has its situs at that facility, exceeds one hundred fifty million dollars ($150,000,000). Compliance with this subparagraph shall be certified by the Governor's Office of Business and Economic Impact Development upon the director's approval of a proponent's application for certification of a qualified manufacturing facility. An application for certification shall be submitted by a proponent to the Governor's Office of Business and Economic Impact Development in writing in the time and manner as specified by the director. (B) The facility is to be located within the jurisdiction of the electing county, city and county, or city to which the request is made for payment of capital investment incentive amounts. (C) The facility is operated by any of the following: (i) A business described in Codes 3321 to 3399, inclusive, or Codes 541711 or 541712 of the 2012 North American Industry Classification System (NAICS) Manual published by the United States Office of Management and Budget. (ii) A business engaged in the recovery of minerals from geothermal resources, including the proportional amount of a geothermal electric generating plant that is integral to the recovery process by providing electricity for it.


(iii) A business engaged in the manufacturing of parts or components related to the production of electricity using solar, wind, biomass, hydropower, or geothermal resources on or after July 1, 2010. (D) The proponent is currently engaged in any of the following: (1) Commercial production. (ii) The perfection of the manufacturing process. (iii) The perfection of a product intended to be manufactured. (2) "Proponent" means a party or parties that meet all of the following criteria: (A) The party is named in the application to the county, city and county, or city within which the qualified manufacturing facility would be located for a permit to construct a qualified manufacturing facility. (B) The party will be the fee owner of the qualified manufacturing facility upon the completion of that facility. Notwithstanding the previous sentence, the party may enter into a sale-leaseback transaction and nevertheless be considered the proponent. (C) If a proponent that is receiving capital investment incentive amounts subsequently leases the subject qualified manufacturing facility to another party, the lease may provide for the payment to that lessee of any portion of a capital investment incentive amount. Any lessee receiving any portion of a capital investment incentive amount shall also be considered a proponent for the purposes of subdivision (d). (3) "Capital investment incentive amount" means, with respect to a qualified manufacturing facility for a relevant fiscal year, an amount up to or equal to the amount of ad valorem property tax revenue allocated to the participating local agency, which excludes the revenue transfers required by Sections 97.2 and 97.3 of the Revenue and Taxation Code, from the taxation of that portion of the total assessed value of that real and personal property described in subparagraph (A) of paragraph (1) that is in excess of one hundred fifty million dollars ($150,000,000). (4) "Manufacturing" means the activity of converting or conditioning property by changing the form, composition, quality, or character of the property for ultimate sale at retail or use in the manufacturing of a product to be ultimately sold at retail. Manufacturing includes any improvements to tangible personal property that result in a greater service life or greater functionality than that of the original property.

(e) (1) Each county, city and county, or city that elects to establish a capital investment incentive program shall notify the Governor's Office of Business and Economic Impact Development of its election to do so no later than June 30th of the fiscal year in which the election was made. (2) In addition to the information required to be reported pursuant to paragraph (1), each county, city and county, or city that has elected to establish a capital investment incentive program shall notify the Governor's Office of Business and Economic Impact Development each fiscal year no later than June 30th of the amount of any capital investment incentive payments made and the proponent of the qualified manufacturing facility to whom the payments were made during that fiscal year. (3) The Governor's Office of Business and Economic Impact Development shall compile the information submitted by each county, city and county, and city pursuant to paragraphs (1) and (2) and submit a report to the Legislature containing this information no later than October 1, every two years commencing October 1, 2016. (f) This section shall become operative on July 1, 2015.

Section 53542 of the Government Code is amended to read: (a) The Housing Bond Credit Committee shall, after consultation with appropriate agencies including, but not limited to, the Governor's Office of Department of Business and Economic Impact Development, the Department of Housing and Community Development, the Governor's Office of Planning and Research, the California Housing Finance Agency, the Senate Office of Research, the Assembly Office of Research, and the Department of Finance, designate areas of chronic economic distress in conformity with paragraph (3) of subdivision (k) of Section 103 (A)


of the Internal Revenue Code. Criteria to be used in designating areas of chronic economic distress include:

Section 63021 of the Government Code is amended to read: (a) There is within the Governor's Office of Business and Economic Impact Development the Infrastructure and Economic Development Bank which shall be responsible for administering this division. (b) The bank shall be under the direction of an executive director appointed by the Governor, and who shall serve at the pleasure of the Governor. The appointment shall be subject to confirmation by the Senate.

Section 63021.5 of the Government Code is amended to read: (a) The bank shall be governed and its corporate power exercised by a board of directors that shall consist of the following persons: (1) The Director of Finance or his or her designee. (2) The Treasurer or his or her designee. (3) The Director of the Governor's Office of Business and Economic Impact Development or his or her designee, who shall serve as chair of the board. (4) An appointee of the Governor. (5) The Secretary of Transportation or his or her designee. (b) Any designated director shall serve at the pleasure of the designating power. (c) Three of the members shall constitute a quorum and the affirmative vote of three board members shall be necessary for any action to be taken by the board. (d) A member of the board shall not participate in any bank action or attempt to influence any decision or recommendation by any employee of, or consultant to, the bank that involves a sponsor of which he or she is a representative or in which the member or a member of his or her immediate family has a personal financial interest within the meaning of Section 87100. For purposes of this section, "immediate family" means the spouse, children, and parents of the member. (e) Except as provided in this subdivision, the members of the board shall serve without compensation, but shall be reimbursed for actual and necessary expenses incurred in the performance of their duties to the extent that reimbursement for these expenses is not otherwise provided or payable by another public agency, and shall receive one hundred dollars ($100) for each full day of attending meetings of the authority.

Section 63088.3 of the Government Code is amended to read: Unless the context otherwise requires, the definitions in this section shall govern the construction of this chapter. The definitions provided in this section shall only apply to this chapter and not to any other chapter of this division. (e) "California Small Business Finance Center" means the governmental unit within the bank, which is located within the Governor's Office of Business and Economic Impact Development, with the administrative responsibility for programs and activities authorized pursuant to Section 8684.2 of this code. Chapter 1 (commencing with Section 14000) of Part 5 of Division 3 of Title 1 of the Corporations Code, and this chapter.

Section 63088.5 of the Government Code is amended to read: (a) There is within the Governor's Office of Business and Economic Impact Development the California Infrastructure and Economic Development Bank, which shall, among other things, administer the California Small Business Finance Center that administers programs to assist businesses seeking new capital resources, including, but not limited to, the Small Business Loan Guarantee Program.


Section 65923.8 of the Government Code Is amended to read: Any state agency which is the lead agency for a development project shall inform the applicant for a permit that the Governor's Office of Business and Economic Impact Development has been created to assist, and provide information to, developers relating to the permit approval process.

Section 97012 of the Government Code Is amended to read: The board is encouraged to form an executive steering committee with members from relevant state agencies and departments with expertise in public health, homelessness and housing, workforce development, economic development, and effective rehabilitative treatment for adult and juvenile offenders in the evaluation of the social innovation financing program, including, but not limited to, the Governor's Office of Business and Economic Impact Development, the Department of Housing and Community Development, the California Workforce Investment Board, and the Office of Health Equity, to make recommendations to the board regarding the efficacy and viability of proposals.

Section 99055 of the Government Code Is amended to read: (a) Solely for the purpose of authorizing the issuance and sale pursuant to the State General Obligation Bond Law of the bonds authorized by this title and the making of those determinations and the taking of other actions as are authorized by this title, the Economic Recovery Financing Committee is hereby created. For purposes of this title, the Economic Recovery Financing Committee is "the committee" as that term is used in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2). (b) The committee consists of all of the following members: (1) The Governor or his or her designee. (2) The Director of Finance. (3) The Treasurer. (4) The Controller. (5) The Director of the Governor's Office of Business and Economic Impact Development. (6) The Director of General Services. (7) The Director of Transportation. (c) Notwithstanding any other provision of law, any member may designate a deputy to act as that member in his or her place and stead for all purposes, as though the member were personally present. (d) The Legislature finds and declares that each member of the committee has previously acted as a member of a similar finance committee. (e) A majority of the members of the committee shall constitute a quorum of the committee and may act for the committee.

(f) The Director of Finance shall serve as chairperson of the committee.

Section 99500 of the Government Code is amended to read: (a) The Governor is the primary state officer representing California's interest in international affairs, to the extent that representation is not in conflict with federal law or the California Constitution, and except as otherwise specified in this title, to the extent this title is not in conflict with federal law or the California Constitution. (b) The Lieutenant Governor is the Chair of the California Commission for Economic Development, to improve trade opportunities for California. The Legislature finds that the commission has developed international partnerships that provide venues for foreign companies to do business in the state and for California-based companies to access foreign markets. (c) The Attorney General is the chief law officer of California and as such assists the federal government in defending against international challenges to California laws.


(d) The Secretary of State oversees the International Business Relations Program, which aims to develop stronger connections between the international business community and the state by assisting foreign business entities with the various filing processes and procedures in California. (e) The Department of Food and Agriculture is the primary state agency for the promotion of California agriculture, fish, and forest exports. (f) The Natural Resources Agency and the California Environmental Protection Agency are the primary state agencies for the promotion of international exchange of environmental protection technologies, alternative energy technologies, and the promotion of the transfer of environmental technology to and from the state. (g) The Governor's Office of Business and Economic Impact Development is the primary state agency responsible for international trade and investment activities in areas other than those covered by the Department of Food and Agriculture. (h) Subdivisions (a) to (f), inclusive, are declaratory of, and do not constitute a change in, existing law.

Section 99503 of the Government Code Is amended to read: (a) (1) All state employees working under the jurisdiction of an agency secretary shall, within 30 days of traveling out of the country on official state business provide, to the secretary to whom they report, a memorandum detailing dates of the trip, countries and localities visited, a description of attendees of any official meetings or events, and the goals, outcomes, and followup expected from the trip. However, attendance at formal conferences may be described in more general detail, including dates, location, types of groups represented in the audience, and general topics covered during the course of the conference. (2) Except as provided in paragraphs (3) and (4), state employees who do not work within an agency structure shall report the information as described in paragraph (1) to the Governor's office. (3) Legislative employees shall provide the information as described in paragraph (1) to their respective Committee on Rules. (4) State employees working under the jurisdiction of a constitutional officer shall provide the information as described in paragraph (1) to the constitutional officer to whom they report. (5) Except as provided in paragraphs (3) and (4), state employees who undertake official state business that could impact California international trade or investment shall also provide a copy of the memorandum to the Director of the Governor's Office of Business and Economic Impact Development. (b) Travel out of the country on official state business when the Governor, a Member of the Legislature, or a constitutional officer, or all of these persons, is present, is exempt from the requirements of subdivision (a).

Section 99522 of the Government Code Is amended to read: (a) The California-Mexico Border Relations Council is hereby established in state government. The council shall consist of the Director of the Governor's Office of Business and Economic Impact Development, the Secretary of the Natural Resources Agency, the Secretary for Environmental Protection, the Secretary of California Health and Human Services, the Secretary of Transportation, the Secretary of Food and Agriculture, the Secretary of State and Consumer Services, and the Director of Emergency Services. The Regional Administrator of the United States Environmental Protection Agency, Region 9, may appoint a representative from his or her staff to serve as an ex-officio, nonvoting member of the council. (b) The Secretary for Environmental Protection shall chair the council.

Section 4630.2 of the Pubiic Resources Code is amended to read: (a) On or before July 1, 2020, the Forest Health Task Force pursuant to Executive Order B-52-18 or its successor entity shall, in consultation with the Governor's Office of Business Economic Impact Development, the Joint Institute for Wood Products Innovation in the Board of Forestry


and Fire Protection, private industry, investors, and other stakeholders it deems appropriate, develop recommendations for siting of additional wood product manufacturing facilities in the state. These recommendations shall include but are not limited to: (1) A financially viable proposal for the development and construction of at least one new mass timber production facility that can manufacture mass timber panels that can be cross or dowel laminated or use similar mass timber technology. (2) Identify and propose the necessary incentives needed to attract private investment to construct such a mass timber production facility in California. (3) Identify other former manufacturing or wood processing sites that may be suitable for future investment. (b) In developing the recommendations pursuant to subdivision (a), it is the intent of the Legislature that the location and activities of the mass timber production facilities, to the extent feasible, meet the following: (1) Be adjacent to a high or very high fire hazard severity zone, as identified by the Department of Forestry and Fire Protection, and be capable of processing materials generated as a result of fuel treatments or other forest management practices. (2) Generate mass timber workforce training and job cfeation opportunities. (3) Be located in, or be proximate to, areas that are near the locations of large landscape fires of greater than 50,000 acres that have occurred since 2005 and in areas identified as federal opportunity zones or in areas that have an average household income of 5 percent below the state's median household income.

Section 25464 of the Public Resources Code Is amended to read: (c) The commission may work directly with the Governor's Office of Business and Economic Impact Development, the Treasurer, or any other state agency, board, commission, or authority to implement and administer the program, and may contract for private services as needed to implement the program.

Section 71040 of the Public Resources Code Is amended to read: The Governor's Office of Business and Economic Impact Development shall establish an electronic online permit assistance center through the Internet. The electronic online permit assistance center shall be available for use by any business or other entity subject to a law or regulation implemented by an agency, authority, bureau, board, commission, conservancy, council, department, state district, or office, and shall provide a business or other entity with assistance in complying with those laws and regulations. The center, which shall be called the "California Government-On Line to Desktops" or "CALGOLD" program, shall provide special software, "hotlinks," and other online resources and tools that may be used by a business or other entity to streamline and expedite compliance with laws and regulations implemented by an agency, authority, bureau, board, commission, conservancy, council, department, state district, or office. The CALGOLD program shall, to the extent feasible, incorporate permit assistance activities of local and federal entities and of other entities of the state into its operations.

Section 323.5 of the Public Utilities Code Is amended to read: (a) For the purposes of this section, the following terms have the following meanings: (1) "Demand-side energy management programs" mean all energy efficiency, demand-side response, clean distributed generation, energy conservation, energy savings, or weatherization programs of the state or a local government, electrical corporations, gas corporations, or a local publicly owned electric or gas utility. (2) "Small business" has the same meaning as defined in Section 14837 of the Government Code. (b) The commission shall ensure that the Internet Web site for the Energy Upgrade California program is revised and maintained to include information related to demand-side energy management programs for small business customers.


(c) The commission, in consultation with the Office of Small Business Advocate within the Governor's Office of Business and Economic Impact Development, shall ensure that adequate marketing, education, and outreach are undertaken that is directed at small business customers to enable small business customers to fully participate in ratepayer-funded demand-side energy management programs, including programs that provide financial incentives, rebates, technical assistance, and support pursuant to Sections 454.54 and 454.55.

Section 17039 of the Revenue and Taxation Code Is amended to read: (c) (1) Notwithstanding any other provision of this part, no tax credit shall reduce the tax imposed under Section 17041 or 17048 plus the tax imposed under Section 17504 (relating to the separate tax on lump-sum distributions) below the tentative minimum tax, as defined by Section 17062, except the following credits: (X) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 17059.2 (relating to GO Biz O.E.I. California Competes l a x Credit).

Section 17053.73 of the Revenue and Taxation Code Is amended to read: (b) For purposes of this section: (12) "Qualified wages" means those wages that meet all of the following requirements: (II) For purposes of this clause: (ia) "Designated pilot area" means an area designated as a designated pilot area by the Governor's Office of Business and Economic Impact Development. (ib) Areas that may be designated as a designated pilot area are limited to areas within a designated census tract or an economic development area with average wages less than the statewide average wages, based on information from the Labor Market Division of the Employment Development Department, and areas within a designated census tract or an economic development area based on high poverty or high unemployment. (ic) The total number of designated pilot areas that may be designated is limited to five, one or more of which must be an area within five or fewer designated census tracts within a single county based on high poverty or high unemployment or an area within an economic development area based on high poverty or high unemployment. (id) The designation of a designated pilot area shall be applicable for a period of four calendar years, commencing with the first calendar year for which the designation of a designated pilot area is effective. The applicable period of a designated pilot area may be extended, in the sole discretion of the Governor's Office of Business and Economic Impact Development, for an additional period of up to three calendar years. The applicable period, and any extended period, shall not extend beyond December 31, 2020. (III) The designation of an area as a designated pilot area and the extension of the applicable period of a designated pilot area shall be at the sole discretion of the Governor's Office of Business and Economic Impact Development and shall not be subject to administrative appeal or judicial review.

Section 17053.95 of the Revenue and Taxation Code is amended to read: (e) (1) (A) Subject to 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 California Film Commission shall adopt rules and regulations to implement a Career Readiness requirement by which the California Film Commission shall identify training and public service opportunities that may include, but not be limited to, hiring interns, public service announcements, and community outreach and may prescribe rules and regulations to carry out the purposes of this section, including, subparagraph (D) of paragraph (4) of subdivision (a) and clause (iv) of subparagraph (D) of paragraph (2) of subdivision (g), and including any rules and regulations necessary to establish procedures, processes, requirements, application fee structure, and rules identified in or required to implement this section, including credit and logo requirements and credit


allocation procedures over multiple fiscal years where the qualified taxpayer is producing a series of features that will be filmed concurrently. (B) Notwithstanding any other law, prior to preparing a notice of proposed action pursuant to Section 11346.4 of the Government Code and prior to making any revision to the proposed regulation other than a change that is nonsubstantial or solely grammatical in nature, the Governor's Office of Business and Economic Impact Development shall first approve the proposed regulation or proposed change to a proposed regulation regarding allocating the credit pursuant to subdivision (i), computing the jobs ratio as described in subdivisions (d) and (g), and defining "reasonable cause" pursuant to subparagraph (E) of paragraph (2) of subdivision (d). (2) (A) Implementation of this section for the 2015-16 fiscal year is deemed an emergency and necessary for the immediate preservation of the public peace, health, and safety, or general welfare and, therefore, the California Film Commission is hereby authorized to adopt emergency regulations to implement this section during the 2015-16 fiscal year in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (B) Nothing in this paragraph shall be construed to require the Governor's Office of Business an4 Economic Impact Development to approve emergency regulations adopted pursuant to this paragraph. (3) The California Film Commission shall not be required to prepare an economic impact analysis pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) with regard to any rules and regulations adopted pursuant to this subdivision.

Section 17053.98 of the Revenue and Taxation Code is amended to read: (e) (1) (A) Subject to 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 California Film Commission shall adopt rules and regulations to implement a pilot Career Pathways Training program including a fee to be paid by the qualified taxpayer, if the qualified taxpayer receives a credit under this section, to fund technical skills training to individuals from underserved communities for entry into film and television industry jobs. The California Film Commission shall (i) identify a not-for-profit fiscal agent with direct relationships to industry skills training programs to manage the funds; and (ii) engage labor-management jointly administered training programs with skills training focused on the entertainment industry to implement the program with California Film Commission approval and oversight. With regard to the Career Readiness requirement in Section 17053.95, the California Film Commission shall identify training and public service opportunities that may include, but not be limited to, hiring interns, public service announcements, and community outreach shall continue. The California Film Commission may prescribe rules and regulations to carry out the purposes of this section, including, subparagraph (D) of paragraph (4) of subdivision (a) and clause (iv) of subparagraph (D) of paragraph (2) of subdivision (g), and including any rules and regulations necessary to establish procedures, processes, requirements, application fee structure, and rules identified in or required to implement this section, including credit and logo requirements and credit allocation procedures over multiple fiscal years where the qualified taxpayer is producing a series of features that will be filmed concurrently. (B) Notwithstanding any other law, prior to preparing a notice of proposed action pursuant to Section 11346.4 of the Government Code and prior to making any revision to the proposed regulation other than a change that is nonsubstantial or solely grammatical in nature, the Governor's Office of Business and Economic Impact Development shall first approve the proposed regulation or proposed change to a proposed regulation regarding allocating the credit pursuant to subdivision (i), computing the jobs ratio as described in subdivisions (d) and (g), and defining "reasonable cause" pursuant to subparagraph (C) of paragraph (2) of subdivision (d). (2) (A) Implementation of this section for the 2020-21 fiscal year is deemed an emergency and necessary for the immediate preservation of the public peace, health, and safety, or general


welfare and, therefore, the California Film Commission is hereby authorized to adopt emergency regulations to implement this section during the 2020-21 fiscal year in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (B) Nothing in this paragraph shall be construed to require the Governor's Office of Business and Economic Impact Development to approve emergency regulations adopted pursuant to this paragraph. (3) The California Film Commission shall not be required to prepare an economic impact analysis pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) with regard to any rules and regulations adopted pursuant to this subdivision. (C) Whether the applicant received any financial incentives from the state or foreign jurisdiction

to make the qualified motion picture in that location.

Section 17059.2 of the Revenue and Taxation Code is amended to read: (a) (1) For each taxable year beginning on and after January 1, 2014, and before January 1, 2030, there shall be allowed as a credit against the "net tax," as defined in Section 17039, an amount as determined by the committee pursuant to paragraph (2) and approved pursuant to Section 18410.2. (2) The credit under this section shall be allocated by GO-Biz O.E.I, with respect to the 2013-14 fiscal year through and including the 2022-23 fiscal year. The amount of credit allocated to a taxpayer with respect to a fiscal year pursuant to this section shall be as set forth in a written agreement between GO Biz O.E.I, and the taxpayer and shall be based on the following factors: (A) The number of jobs the taxpayer will create or retain in this state. (B) The compensation paid or proposed to be paid by the taxpayer to its employees, including wages and fringe benefits. (C) The amount of investment in this state by the taxpayer. (D) The extent of unemployment or poverty in the area according to the United States Census in which the taxpayer's project or business is proposed or located. (E) The incentives available to the taxpayer in this state, including incentives from the state, local government, and other entities. (F) The incentives available to the taxpayer in other states. (G) The duration of the proposed project and the duration the taxpayer commits to remain in this state. (H) The overall economic impact in this state of the taxpayer's project or business. (I) The strategic importance of the taxpayer's project or business to the state, region, or locality. (J) The opportunity for future growth and expansion in this state by the taxpayer's business. (K) The extent to which the anticipated benefit to the state exceeds the projected benefit to the taxpayer from the tax credit. (L) For a credit allocated beginning with the 2018-19 fiscal year, the training opportunities offered by the taxpayer to its employees. (3) The written agreement entered into pursuant to paragraph (2) shall include: (A) Terms and conditions that include the taxable year or years for which the credit allocated shall be allowed, a minimum compensation level, and a minimum job retention period. (B) Provisions indicating whether the credit is to be allocated in full upon approval or in increments based on mutually agreed upon milestones when satisfactorily met by the taxpayer. (C) Provisions that allow the committee to recapture the credit, in whole or in part, if the taxpayer fails to fulfill the terms and conditions of the written agreement. (b) For purposes of this section: (1) "Committee" means the California Competes Tax Credit Committee established pursuant to Section 18410.2. (2) "GO-Biz" means the Governor's Office of Business and Economic Development.


(c) For purposes of this section, GO-Biz the Governor's Office of Economic Impact shall do the following: (1) Give priority to a taxpayer whose project or business is located or proposed to be located in an area of high unemployment or poverty. (2) Negotiate with a taxpayer the terms and conditions of proposed written agreements that provide the credit allowed pursuant to this section to a taxpayer. (3) Provide the negotiated written agreement to the committee for its approval pursuant to Section 18410.2. (4) Inform the Franchise Tax Board of the terms and conditions of the written agreement upon approval of the written agreement by the committee. (5) Inform the Franchise Tax Board of any recapture, in whole or in part, of a previously allocated credit upon approval of the recapture by the committee. (6) Post on its Internet Web site all of the following: (A) The name of each taxpayer allocated a credit pursuant to this section. (B) The estimated amount of the investment by each taxpayer. (C) The estimated number of jobs created or retained. (D) The amount of the credit allocated to the taxpayer. (E) The amount of the credit recaptured from the taxpayer, if applicable. (F) The primary location where the taxpayer has committed to increasing the net number of jobs or make investments. The primary location shall be listed by city or, in the case of unincorporated areas, by county. (G) Information that identifies each tax credit award that was given a priority for being located in a high unemployment or poverty area, pursuant to paragraph (1). (7) For allocation periods beginning with the 2018-19 fiscal year, when determining whether to enter into a written agreement with a taxpayer pursuant to this section, GO-Biz the Governor's Office of Economic Impact shall consider the extent to which the credit will influence the taxpayer's ability, willingness, or both, to create jobs in this state that might not othenA/ise be created in the state by the taxpayer or any other taxpayer. GO-Biz the Governor's Office of Economic Impact may also consider other factors, including, but not limited to, the following: (A) The financial solvency of the taxpayer and the taxpayer's ability to finance its proposed expansion. (B) The taxpayer's current and prior compliance with federal and state laws. (C) Current and prior litigation involving the taxpayer. (D) The reasonableness of the fee arrangement between the taxpayer and any third party providing any services related to the credit allowed pursuant to this section. (E) Any other factors GO-Biz the Governor's Office of Economic Impact deems necessary to ensure that the administration of the credit allowed pursuant to this section is a model of accountability and transparency and that the effective use of the limited amount of credit available is maximized. (d) For purposes of this section, the Franchise Tax Board shall do all of the following: (1) (A) Except as provided in subparagraph (B), review the books and records of all taxpayers allocated a credit pursuant to this section to ensure compliance with the terms and conditions of the written agreement between the taxpayer and GO-Biz the Governor's Office of Economic Impact. (B) In the case of a taxpayer that is a "small business," as defined in Section 17053.73, review the books and records of the taxpayer allocated a credit pursuant to this section to ensure compliance with the terms and conditions of the written agreement between the taxpayer and GO-Biz the Governor's Office of Economic Impact when, in the sole discretion of the Franchise Tax Board, a review of those books and records is appropriate or necessary in the best interests of the state. (2) Notwithstanding Section 19542, notify GO -Biz the Governor's Office of Economic Impact of a possible breach of the written agreement by a taxpayer and provide detailed information regarding the basis for that determination.


(e) In the case where the credit allowed under this section exceeds the "net tax," as defined in Section 17039, for a taxable year, the excess credit may be carried over to reduce the "net tax" in the following taxable year, and succeeding five taxable years, if necessary, until the credit has been exhausted. (f) Any recapture, in whole or in part, of a credit approved by the committee pursuant to Section 18410.2 shall be treated as a mathematical error appearing on the return. Any amount of tax resulting from that recapture shall be assessed by the Franchise Tax Board in the same manner as provided by Section 19051. The amount of tax resulting from the recapture shall be added to the tax otherwise due by the taxpayer for the taxable year in which the committee's recapture determination occurred. (g) (1) The aggregate amount of credit that may be allocated in any fiscal year pursuant to this section and Section 23689 shall be an amount equal to the sum of subparagraphs (A), (B), and (C), less the amount specified in subparagraphs (D) and (E): (A) Thirty million dollars ($30,000,000) for the 2013-14 fiscal year, one hundred fifty million dollars ($150,000,000) for the 2014-15 fiscal year, two hundred million dollars ($200,000,000) for each fiscal year from 2015-16 to 2017-18, inclusive, and one hundred eighty million dollars ($180,000,000) for each fiscal year from 2018-19 to 2022-23, inclusive. (B) The unallocated credit amount, if any, from the preceding fiscal year. (C) The amount of any previously allocated credits that have been recaptured. (D) The amount estimated by the Director of Finance, in consultation with the Franchise Tax Board and the California Department of Tax and Fee Administration, to be necessary to limit the aggregation of the estimated amount of exemptions claimed pursuant to Section 6377.1 and of the amounts estimated to be claimed pursuant to this section and Sections 17053.73, 23626, and 23689 to no more than seven hundred fifty million dollars ($750,000,000) for either the current fiscal year or the next fiscal year. (1) The Director of Finance shall notify the Chairperson of the Joint Legislative Budget Committee of the estimated annual allocation authorized by this paragraph. Any allocation pursuant to these provisions shall be made no sooner than 30 days after written notification has been provided to the Chairperson of the Joint Legislative Budget Committee and the chairpersons of the committees of each house of the Legislature that consider appropriations, or not sooner than whatever lesser time the Chairperson of the Joint Legislative Budget Committee, or his or her designee, may determine. (ii) In no event shall the amount estimated in this subparagraph be less than zero dollars ($0). (E) (i) For the 2015-16 fiscal year and each fiscal year thereafter, the amount of credit estimated by the Director of Finance to be allowed to all qualified taxpayers for that fiscal year pursuant to subparagraph (A) or subparagraph (B) of paragraph (1) of subdivision (c) of Section 23636. (ii) If the amount available per fiscal year pursuant to this section and Section 23689 is less than the aggregate amount of credit estimated by the Director of Finance to be allowed to qualified taxpayers pursuant to subparagraph (A) or subparagraph (B) of paragraph (1) of subdivision (c) of Section 23636, the aggregate amount allowed pursuant to Section 23636 shall not be reduced and, in addition to the reduction required by clause (i), the aggregate amount of credit that may be allocated pursuant to this section and Section 23689 for the next fiscal year shall be reduced by the amount of that deficit. (iii) It is the intent of the Legislature that the reductions specified in this subparagraph of the aggregate amount of credit that may be allocated pursuant to this section and Section 23689 shall continue if the repeal dates of the credits allowed by this section and Section 23689 are removed or extended. (2) (A) In addition to the other amounts determined pursuant to paragraph (1), the Director of Finance may increase the aggregate amount of credit that may be allocated pursuant to this section and Section 23689 by up to twenty-five million dollars ($25,000,000) per fiscal year through the 2022-23 fiscal year. The amount of any increase made pursuant to this paragraph, when combined with any increase made pursuant to paragraph (2) of subdivision (g) of


Section 23689, shall not exceed twenty-five million dollars ($25,000,000) per fiscal year through the 2022-23 fiscal year. (B) It is the intent of the Legislature that the Director of Finance increase the aggregate amount under subparagraph (A) in order to mitigate the reduction of the amount available due to the credit allowed to all qualified taxpayers pursuant to subparagraph (A) or (B) of paragraph (1) of subdivision (c) of Section 23636. (3) Each fiscal year through the 2017-18 fiscal year, 25 percent of the aggregate amount of the credit that may be allocated pursuant to this section and Section 23689 shall be reserved for small business, as defined in Section 17053.73 or 23626. (4) Each fiscal year, no more than 20 percent of the aggregate amount of the credit that may be allocated pursuant to this section shall be allocated to any one taxpayer. (h) GO-Bk The Governor's Office of Economic Impact mav prescribe rules and regulations as necessary to carry out the purposes of this section. Any rule or regulation prescribed pursuant to this section may be by adoption of an emergency regulation in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (i) A written agreement between GO-Biz the Governor's Office of Economic Impact and a taxpayer with respect to the credit authorized by this section shall comply with existing law on the date the agreement is executed. G) (1) Upon the effective date of this section, the Department of Finance shall estimate the total dollar amount of credits that will be claimed under this section with respect to each fiscal year from the 2013-14 fiscal year to the 2029-30 fiscal year, inclusive. (2) The Franchise Tax Board shall annually provide to the Joint Legislative Budget Committee, by no later than March 1, a report of the total dollar amount of the credits claimed under this section with respect to the relevant fiscal year. The report shall compare the total dollar amount of credits claimed under this section with respect to that fiscal year with the department's estimate with respect to that same fiscal year. If the total dollar amount of credits claimed for the fiscal year is less than the estimate for that fiscal year, the report shall identify options for increasing annual claims of the credit so as to meet estimated amounts, (k) (1) Notwithstanding Section 19542, on or before October 1, 2019, GO Biz the Governor's Office of Economic Impact shall provide to the Legislative Analyst's Office a report on the credits allocated pursuant to this section for the 2018-19 fiscal year. This report shall include the following: (A) A detailed description of the methodology used to evaluate applications and allocate credits as described by Section 8030 of Title 10 of the California Code of Regulations, or any successor regulation. (B) For each taxpayer that applies for a credit, a list that includes the applicant's name, "aggregate employee compensation," "aggregate investment," and "cost-benefit ratio" as those terms are defined for purposes of, or used in. Section 8030 of Title 10 of the California Code of Regulations. (C) For each written agreement recommended to the committee pursuant to this section, a detailed justification for GO-Biz the Governor's Office of Economic Impact decision to enter into a written agreement with the taxpayer. (2) (A) On or before April 1, 2020, the Legislative Analyst's Office shall provide to the Assembly Committee on Revenue and Taxation, the Senate Committee on Governance and Finance, the budget committees of both houses, and the public with a report evaluating the report required by paragraph (1). (B) GO-Biz The Governor's Office of Economic Impact, the Franchise Tax Board, and all other relevant state agencies shall provide additional information, as specified by the Legislative Analyst's Office, as needed to research the reports required by this subdivision. (C) Any information received by the Legislative Analyst's Office pursuant to this subdivision, that has not othenwise been made public, shall be considered confidential taxpayer information subject to Section 19542.


(D) The Legislative Analyst's Office may publish statistics in conjunction with the reports required by this subdivision that are derived from information provided to the Legislative Analyst's Office pursuant to this section, if the published statistics are aggregated to prevent the identification of particular taxpayers under this part. (I) This section is repealed on December 1, 2030.

Section 18410.2 of the Revenue and Taxation Code Is amended to read: (a) The California Competes Tax Credit Committee is hereby established. The committee shall consist of the Treasurer, the Director of Finance, and the Director of the Governor's Office of Business and Economic Impact Development, who shall serve as chair of the committee, or their designated representatives, and one appointee each by the Speaker of the Assembly and the Senate Committee on Rules. A Member of the Legislature shall not be appointed. (b) For purposes of Sections 17059.2 and 23689, the California Competes Tax Credit Committee shall do all of the following: (1) Approve or reject any written agreement for a tax credit allocation by resolution at a duly noticed public meeting held in accordance with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code), but only after receipt of the fully executed written agreement between the taxpayer and the Governor's Office of Business and Economic Impact Development. (2) Approve or reject any recommendation to recapture, in whole or in part, a tax credit allocation by resolution at a duly noticed public meeting held in accordance with the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code), but only after receipt of the recommendation from the Governor's Office of Business and Economic Impact Development pursuant to the terms of the fully executed written agreement. (c) For purposes of Sections 17059.2 and 23689, the Governor's Office of Business and Economic Impact Development shall provide a member of the committee, or their designated representatives, listed in subdivision (a), upon request of that member, with any information necessary to fulfill their duties or otherwise comply with the requirements of this section. Nothing in this subdivision shall be construed to require the Governor's Office of Business and Economic Impact Development to provide information to the member or their designated representative that the applicant considers to be a trade secret, confidential, privileged, or otherwise exempt from disclosure under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code).

Section 23036 of the Revenue and Taxation Code is amended to read: (a) (1) The term "tax" includes any of the following: (S) For taxable years beginning on or after January 1, 2014, the credit allowed by Section 23689 (relating to GO Biz the Governor's Office of Economic Impact California Competes Tax Credit).

Section 23626 of the Revenue and Taxation Code is amended to read: (b) For purposes of this section: (12) "Qualified wages" means those wages that meet all of the following requirements: (A) (i) Except as provided in clause (ii), that portion of wages paid or incurred by the qualified taxpayer during the taxable year to each qualified full-time employee that exceeds 150 percent of minimum wage, but does not exceed 350 percent of the minimum wage, (ii) (I) In the case of a qualified full-time employee employed in a designated pilot area, that portion of wages paid or incurred by the qualified taxpayer during the taxable year to each qualified full-time employee that exceeds ten dollars ($10) per hour or an equivalent amount for salaried employees, but does not exceed 350 percent of the minimum wage. For qualified full-time employees described in the preceding sentence, clause (ii) of subparagraph (A) of


paragraph (10) is modified by substituting "ten dollars ($10) per hour or an equivalent amount for salaried employees" for "150 percent of the minimum wage." (II) For purposes of this clause: (la) "Designated pilot area" means an area designated as a designated pilot area by the Governor's Office of Business and Economic Impact Development. (ib) Areas that may be designated as a designated pilot area are limited to areas within a designated census tract or an economic development area with average wages less than the statewide average wages, based on information from the Labor Market Division of the Employment Development Department, and areas within a designated census tract or an economic development area based on high poverty or high unemployment. (ic) The total number of designated pilot areas that may be designated is limited to five, one or more of which must be an area within five or fewer designated census tracts within a single county based on high poverty or high unemployment or an area within an economic development area based on high poverty or high unemployment. (id) The designation of a designated pilot area shall be applicable for a period of four calendar years, commencing with the first calendar year for which the designation of a designated pilot area is effective. The applicable period of a designated pilot area may be extended, in the sole discretion of the Governor's Office of Business and Economic Impact Development, for an additional period of up to three calendar years. The applicable period, and any extended period, shall not extend beyond December 31, 2020. (III) The designation of an area as a designated pilot area and the extension of the applicable period of a designated pilot area shall be at the sole discretion of the Governor's Office of Business and Economic Impact Development and shall not be subject to administrative appeal or judicial review.

Section 23689 of the Revenue and Taxation Code is amended to read: (a) (1) For each taxable year beginning on and after January 1, 2014, and before January 1, 2030, there shall be allowed as a credit against the "tax," as defined in Section 23036, an amount as determined by the committee pursuant to paragraph (2) and approved pursuant to Section 18410.2. (2) The credit under this section shall be allocated by GO-Biz The Governor's Office of Economic Impact with respect to the 2013-14 fiscal year through and including the 2022-23 fiscal year. The amount of credit allocated to a taxpayer with respect to a fiscal year pursuant to this section shall be as set forth in a written agreement between GO-Biz The Governor's Office of Economic Impact and the taxpayer and shall be based on the following factors: (A) The number of jobs the taxpayer will create or retain in this state. (B) The compensation paid or proposed to be paid by the taxpayer to its employees, including wages and fringe benefits. (C) The amount of investment in this state by the taxpayer. (D) The extent of unemployment or poverty in the area according to the United States Census in which the taxpayer's project or business is proposed or located. (E) The incentives available to the taxpayer in this state, including incentives from the state, local government, and other entities. (F) The incentives available to the taxpayer in other states. (G) The duration of the proposed project and the duration the taxpayer commits to remain in this state. (H) The overall economic impact in this state of the taxpayer's project or business. (I) The strategic importance of the taxpayer's project or business to the state, region, or locality. (J) The opportunity for future growth and expansion in this state by the taxpayer's business. (K) The extent to which the anticipated benefit to the state exceeds the projected benefit to the taxpayer from the tax credit. (L) For a credit allocated beginning with the 2018-19 fiscal year, the training opportunities offered by the taxpayer to its employees.

Attachment 1 (page 27 of 32)

(3) The written agreement entered into pursuant to paragraph (2) shall include: (A) Terms and conditions that include the taxable year or years for which the credit allocated shall be allowed, a minimum compensation level, and a minimum job retention period. (B) Provisions indicating whether the credit is to be allocated in full upon approval or in increments based on mutually agreed upon milestones when satisfactorily met by the taxpayer. (C) Provisions that allow the committee to recapture the credit, in whole or in part, if the taxpayer fails to fulfill the terms and conditions of the written agreement. (b) For purposes of this section: (1) "Committee" means the California Competes Tax Credit Committee established pursuant to Section 18410.2. (2) "GO-Biz" means the Governor's Office of Business and Economic Development. (c) For purposes of this section, GO-Biz the Governor's Office of Economic Impact shall do the following: (1) Give priority to a taxpayer whose project or business is located or proposed to be located in an area of high unemployment or poverty. (2) Negotiate with a taxpayer the terms and conditions of proposed written agreements that provide the credit allowed pursuant to this section to a taxpayer. (3) Provide the negotiated written agreement to the committee for its approval pursuant to Section 18410.2. (4) Inform the Franchise Tax Board of the terms and conditions of the written agreement upon approval of the written agreement by the committee. (5) Inform the Franchise Tax Board of any recapture, in whole or in part, of a previously allocated credit upon approval of the recapture by the committee. (6) Post on its Internet Web site all of the following: (A) The name of each taxpayer allocated a credit pursuant to this section. (B) The estimated amount of the investment by each taxpayer. (C) The estimated number of jobs created or retained. (D) The amount of the credit allocated to the taxpayer. (E) The amount of the credit recaptured from the taxpayer, if applicable. (F) The primary location where the taxpayer has committed to increasing the net number of jobs or make investments. The primary location shall be listed by city or, in the case of unincorporated areas, by county. (G) Information that identifies each tax credit award that was given a priority for being located in a high unemployment or poverty area, pursuant to paragraph (1). (7) For allocation periods beginning with the 2018-19 fiscal year, when determining whether to enter into a written agreement with a taxpayer pursuant to this section, GO-Biz the Governor's Office of Economic Impact shall consider the extent to which the credit will influence the taxpayer's ability, willingness, or both, to create jobs in this state that might not othenwise be created in the state by the taxpayer or any other taxpayer. GO-Biz The Governor's Office of Economic Impact may also consider other factors, including, but not limited to, the following: (A) The financial solvency of the taxpayer and the taxpayer's ability to finance its proposed expansion. (B) The taxpayer's current and prior compliance with federal and state laws. (C) Current and prior litigation involving the taxpayer. (D) The reasonableness of the fee arrangement between the taxpayer and any third party providing any services related to the credit allowed pursuant to this section. (E) Any other factors GO-Biz the Governor's Office of Economic Impact deems necessary to ensure that the administration of the credit allowed pursuant to this section is a model of accountability and transparency and that the effective use of the limited amount of credit available is maximized. (d) For purposes of this section, the Franchise Tax Board shall do all of the following: (1) (A) Except as provided in subparagraph (B), review the books and records of all taxpayers allocated a credit pursuant to this section to ensure compliance with the terms and conditions of


the written agreement between the taxpayer and GO-Biz the Governor's Office of Economic Impact. (B) In the case of a taxpayer that is a "small business," as defined in Section 23626, review the books and records of the taxpayer allocated a credit pursuant to this section to ensure compliance with the terms and conditions of the written agreement between the taxpayer and GO-Biz the Governor's Office of Economic Impact when, in the sole discretion of the Franchise Tax Board, a review of those books and records is appropriate or necessary in the best interests of the state. (2) Notwithstanding Section 19542, notify GO-Biz the Governor's Office of Economic Impact of a possible breach of the written agreement by a taxpayer and provide detailed information regarding the basis for that determination. (e) In the case where the credit allowed under this section exceeds the "tax," as defined in Section 23036, for a taxable year, the excess credit may be carried over to reduce the "tax" in the following taxable year, and succeeding five taxable years, if necessary, until the credit has been exhausted. (f) Any recapture, in whole or in part, of a credit approved by the committee pursuant to Section 18410.2 shall be treated as a mathematical error appearing on the return. Any amount of tax resulting from that recapture shall be assessed by the Franchise Tax Board in the same manner as provided by Section 19051. The amount of tax resulting from the recapture shall be added to the tax otherwise due by the taxpayer for the taxable year in which the committee's recapture determination occurred. (g) (1) The aggregate amount of credit that may be allocated in any fiscal year pursuant to this section and Section 17059.2 shall be an amount equal to the sum of subparagraphs (A), (B), and (C), less the amount specified in subparagraphs (D) and (E): (A) Thirty million dollars ($30,000,000) for the 2013-14 fiscal year, one hundred fifty million dollars ($150,000,000) for the 2014-15 fiscal year, two hundred million dollars ($200,000,000) for each fiscal year from 2015-16 to 2017-18, inclusive, and one hundred eighty million dollars ($180,000,000) for each fiscal year from 2018-19 to 2022-23, inclusive. (B) The unallocated credit amount, if any, from the preceding fiscal year. (C) The amount of any previously allocated credits that have been recaptured. (D) The amount estimated by the Director of Finance, in consultation with the Franchise Tax Board and the California Department of Tax and Fee Administration, to be necessary to limit the aggregation of the estimated amount of exemptions claimed pursuant to Section 6377.1 and of the amounts estimated to be claimed pursuant to this section and Sections 17053.73, 17059.2, and 23626 to no more than seven hundred fifty million dollars ($750,000,000) for either the current fiscal year or the next fiscal year. (i) The Director of Finance shall notify the Chairperson of the Joint Legislative Budget Committee of the estimated annual allocation authorized by this paragraph. Any allocation pursuant to these provisions shall be made no sooner than 30 days after written notification has been provided to the Chairperson of the Joint Legislative Budget Committee and the chairpersons of the committees of each house of the Legislature that consider appropriations, or not sooner than whatever lesser time the Chairperson of the Joint Legislative Budget Committee, or his or her designee, may determine. (ii) In no event shall the amount estimated in this subparagraph be less than zero dollars ($0). (E) (i) For the 2015-16 fiscal year and each fiscal year thereafter, the amount of credit estimated by the Director of Finance to be allowed to all qualified taxpayers for that fiscal year pursuant to subparagraph (A) or subparagraph (B) of paragraph (1) of subdivision (c) of Section 23636. (ii) If the amount available per fiscal year pursuant to this section and Section 17059.2 is less than the aggregate amount of credit estimated by the Director of Finance to be allowed to qualified taxpayers pursuant to subparagraph (A) or subparagraph (B) of paragraph (1) of subdivision (c) of Section 23636, the aggregate amount allowed pursuant to Section 23636 shall not be reduced and, in addition to the reduction required by clause (i), the aggregate amount of


credit that may be allocated pursuant to this section and Section 17059.2 for the next fiscal year shall be reduced by the amount of that deficit. (iii) It is the intent of the Legislature that the reductions specified in this subparagraph of the aggregate amount of credit that may be allocated pursuant to this section and Section 17059.2 shall continue if the repeal dates of the credits allowed by this section and Section 17059.2 are removed or extended. (2) (A) In addition to the other amounts determined pursuant to paragraph (1), the Director of Finance may increase the aggregate amount of credit that may be allocated pursuant to this section and Section 17059.2 by up to twenty-five million dollars ($25,000,000) per fiscal year through the 2022-23 fiscal year. The amount of any increase made pursuant to this paragraph, when combined with any increase made pursuant to paragraph (2) of subdivision (g) of Section 17059.2, shall not exceed twenty-five million dollars ($25,000,000) per fiscal year through the 2022-23 fiscal year. (B) It is the intent of the Legislature that the Director of Finance increase the aggregate amount under subparagraph (A) in order to mitigate the reduction of the amount available due to the credit allowed to all qualified taxpayers pursuant to subparagraph (A) or (B) of paragraph (1) of subdivision (c) of Section 23636. (3) Each fiscal year through the 2017-18 fiscal year, 25 percent of the aggregate amount of the credit that may be allocated pursuant to this section and Section 17059.2 shall be reserved for "small business," as defined in Section 17053.73 or 23626. (4) Each fiscal year, no more than 20 percent of the aggregate amount of the credit that may be allocated pursuant to this section shall be allocated to any one taxpayer. (h) GO-Bg The Governor's Office of Economic Impact mav prescribe rules and regulations as necessary to carry out the purposes of this section. Any rule or regulation prescribed pursuant to this section may be by adoption of an emergency regulation in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. (i) (1) A written agreement between GO-Biz the Governor's Office of Economic Impact and a taxpayer with respect to the credit authorized by this section shall not restrict, broaden, or otherwise alter the ability of the taxpayer to assign that credit or any portion thereof in accordance with Section 23663. (2) A written agreement between GO-Biz the Governor's Office of Economic Impact and a taxpayer with respect to the credit authorized by this section must comply with existing law on the date the agreement is executed. G) (1) Upon the effective date of this section, the Department of Finance shall estimate the total dollar amount of credits that will be claimed under this section with respect to each fiscal year from the 2013-14 fiscal year to the 2029-30 fiscal year, inclusive. (2) The Franchise Tax Board shall annually provide to the Joint Legislative Budget Committee, by no later than March 1, a report of the total dollar amount of the credits claimed under this section with respect to the relevant fiscal year. The report shall compare the total dollar amount of credits claimed under this section with respect to that fiscal year with the department's estimate with respect to that same fiscal year. If the total dollar amount of credits claimed for the fiscal year is less than the estimate for that fiscal year, the report shall identify options for increasing annual claims of the credit so as to meet estimated amounts, (k) (1) Notwithstanding Section 19542, on or before October 1, 2019. GO-Bk the Governor's Office of Economic Impact shall provide to the Legislative Analyst's Office a report on the credits allocated pursuant to this section for the 2018-19 fiscal year. This report shall include the following: (A) A detailed description of the methodology used to evaluate applications and allocate credits as described by Section 8030 of Title 10 of the California Code of Regulations, or any successor regulation. (B) For each taxpayer that applies for a credit, a list that includes the applicant's name, "aggregate employee compensation," "aggregate investment," and "cost-benefit ratio" as those


terms are defined for purposes of, or used in. Section 8030 of Title 10 of the California Code of Regulations. (C) For each written agreement recommended to the committee pursuant to this section, a detailed justification for GO-Biz The Governor's Office of Economic Impact's decision to enter into a written agreement with the taxpayer. (2) (A) On or before April 1, 2020, the Legislative Analyst's Office shall provide to the Assembly Committee on Revenue and Taxation, the Senate Committee on Governance and Finance, the budget committees of both houses, and the public with a report evaluating the report required by paragraph (1). (B) GO-Biz The Governor's Office of Economic Impact, the Franchise Tax Board, and all other relevant state agencies shall provide additional information, as specified by the Legislative Analyst's Office, as needed to research the reports required by this subdivision. (C) Any information received by the Legislative Analyst's Office pursuant to this subdivision, that has not otherwise been made public, shall be considered confidential taxpayer information subject to Section 19542. (D) The Legislative Analyst's Office may publish statistics in conjunction with the reports required by this subdivision that are derived from information provided to the Legislative Analyst's Office pursuant to this section, if the published statistics are aggregated to prevent the identification of particular taxpayers under this part. (1) This section is repealed on December 1, 2030.

Section 23695 of the Revenue and Taxation Code Is amended to read: (e) (1) (A) Subject to 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 California Film Commission shall adopt rules and regulations to implement a Career Readiness requirement by which the California Film Commission shall identify training and public service opportunities that may include, but not be limited to, hiring interns, public service announcements, and community outreach and may prescribe rules and regulations to carry out the purposes of this section, including, subparagraph (D) of paragraph (4) of subdivision (a) and clause (iv) of subparagraph (D) of paragraph (2) of subdivision (g), and including any rules and regulations necessary to establish procedures, processes, requirements, application fee structure, and rules identified in or required to implement this section, including credit and logo requirements and credit allocation procedures over multiple fiscal years where the qualified taxpayer is producing a series of features that will be filmed concurrently. (B) Notwithstanding any other law, prior to preparing a notice of proposed action pursuant to Section 11346.4 of the Government Code and prior to making any revision to the proposed regulation other than a change that is nonsubstantial or solely grammatical in nature, the Governor's Office of Business and Economic Impact Development shall first approve the proposed regulation or proposed change to a proposed regulation regarding allocating the credit pursuant to subdivision (i), computing the jobs ratio as described in subdivisions (d) and (g), and defining "reasonable cause" pursuant to subparagraph (E) of paragraph (2) of subdivision (d). (2) (A) Implementation of this section for the 2015-16 fiscal year is deemed an emergency and necessary for the immediate preservation of the public peace, health, and safety, or general welfare and, therefore, the California Film Commission is hereby authorized to adopt emergency regulations to implement this section during the 2015-16 fiscal year in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (B) Nothing in this paragraph shall be construed to require the Governor's Office of Business an4 Economic Impact Development to approve emergency regulations adopted pursuant to this paragraph.


Section 23698 of the Revenue and Taxation Code is amended to read: (e) (1) (A) Subject to 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 California Film Commission shall adopt rules and regulations to implement a pilot Career Pathways Training program including a fee to be paid by the qualified taxpayer, if the qualified taxpayer receives a credit under this section, to fund technical skills training to individuals from underserved communities for entry into film and television industry jobs. The California Film Commission shall (i) identify a not-for-profit fiscal agent with direct relationships to industry skills training programs to manage the funds; and (ii) engage labor-management jointly administered training programs with skills training focused on the entertainment industry to implement the program with California Film Commission approval and oversight. With regard to the Career Readiness requirement in Section 23695, the California Film Commission shall identify training and public service opportunities that may include, but not be limited to, hiring interns, public service announcements, and community outreach shall continue. The California Film Commission may prescribe rules and regulations to carry out the purposes of this section, including, subparagraph (D) of paragraph (4) of subdivision (a) and clause (iv) of subparagraph (D) of paragraph (2) of subdivision (g), and including any rules and regulations necessary to establish procedures, processes, requirements, application fee structure, and rules identified in or required to implement this section, including credit and logo requirements and credit allocation procedures over multiple fiscal years where the qualified taxpayer is producing a series of features that will be filmed concurrently. (B) Notwithstanding any other law, prior to preparing a notice of proposed action pursuant to Section 11346.4 of the Government Code and prior to making any revision to the proposed regulation other than a change that is nonsubstantial or solely grammatical in nature, the Governor's Office of Business and Economic Impact Development shall first approve the proposed regulation or proposed change to a proposed regulation regarding allocating the credit pursuant to subdivision (i), computing the jobs ratio as described in subdivisions (d) and (g), and defining "reasonable cause" pursuant to subparagraph (C) of paragraph (2) of subdivision (d). (2) (A) Implementation of this section for the 2020-21 fiscal year is deemed an emergency and necessary for the immediate preservation of the public peace, health, and safety, or general welfare and, therefore, the California Film Commission is hereby authorized to adopt emergency regulations to implement this section during the 2020-21 fiscal year in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). (B) Nothing in this paragraph shall be construed to require the Governor's Office of Business an<d-Economic Impact Development to approve emergency regulations adopted pursuant to this paragraph. (3) The California Film Commission shall not be required to prepare an economic impact analysis pursuant to the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) with regard to any rules and regulations adopted pursuant to this subdivision.

Section 34019 of the Revenue and Taxation Code Is amended to read: (d) The Controller shall next disburse the sum often million dollars ($10,000,000) beginning with the 2018-19 fiscal year and increasing ten million dollars ($10,000,000) each fiscal year thereafter until the 2022-23 fiscal year, at which time the disbursement shall be fifty million dollars ($50,000,000) each year thereafter, to the Governor's Office of Business and Economic Impact Development, in consultation with the Labor and Workforce Development Agency and the State Department of Social Services, to administer a community reinvestments grants program to local health departments and at least 50 percent to qualified community-based nonprofit organizations to support job placement, mental health treatment, substance use disorder treatment, system navigation services, legal services to address barriers to reentry, and linkages to medical care for communities disproportionately affected by past federal and


state drug policies. The office shall solicit input from community-based job skills, job placement, and legal service providers with relevant expertise as to the administration of the grants program. In addition, the office shall periodically evaluate the programs it is funding to determine the effectiveness of the programs, shall not spend more than 4 percent for administrative costs related to implementation, evaluation, and oversight of the programs, and shall award grants annually, beginning no later than January 1, 2020.

Section 335 of the Unemployment Insurance Code is amended to read: The department, in consultation and coordination with the film and movie industry, the Governor's Office of Business and Economic Impact Development, and the California Film Commission shall do all of the following, contingent upon the appropriation of funds in the annual Budget Act for these specified purposes: (a) Research and maintain data on the employment and output of the film industry, including full-time, part-time, contract, and short duration or single event employees. (b) Examine the ethnic diversity and representation of minorities in the entertainment industry. (c) Determine the overall direct and indirect economic impact of the film industry. (d) Monitor film industry employment and activity in other states and countries that compete with California for film production. (e) Review the effect that federal and state laws and local ordinances have on the filmed entertainment industry. (f) Prepare and release biannually a report to the chairpersons of the appropriate Senate and Assembly policy committees that details the information required by this section.

Section 10200 of the Unemployment Insurance Code Is amended to read: The Legislature finds and declares the following: (c) The program established through this chapter is to be coordinated with all existing employment training programs and economic development programs, including, but not limited to, programs such as the Workforce Investment Act of 1998 (29 U.S.C. Sec. 2801 et seq.), the California Community Colleges, the regional occupational programs, vocational education programs, joint labor-management training programs, and related programs under the Employment Development Department and the Governor's Office of Business and Economic Impact Development, and the Business, Consumer Services, and Housing Agency.

Section 10202.5 of the Unemployment Insurance Code Is amended to read: (a) The panel shall consist of eight persons, seven of whom shall be appointed as provided in subdivision (b), and shall have experience and a demonstrated interest in business management and employment relations. The Director of the Governor's Office of Business and Economic Impact Development, or his or her designee, shall also serve on the panel as an ex officio, voting member.

Section 15002 of the Unemployment Insurance Code Is amended to read: (a) The California Workforce Investment Board (CWIB) shall establish a special committee known as the Green Collar Jobs Council (GCJC), comprised of the appropriate representatives from the CWIB existing membership, including the K-12 representative, the California Community Colleges representative, the Governor's Office of Business and Economic Impact Development representative, the Employment Development Department representative, and other appropriate members. The GCJC may consult with other state agencies, other higher education representatives, local workforce investment boards, and industry representatives as well as philanthropic, nongovernmental, and environmental groups, as appropriate, in the development of a strategic initiative. To the extent private funds are available, is the intent of the Legislature that the GCJC will develop an annual award for outstanding achievement for workforce training programs operated by local or state agencies, businesses, or nongovernment organizations to be named after Parrish R. Collins.





Amendment to Budget Bill Item 0511-001-0001, Support, Government Operations Agency

2020 Census Outreach-It is requested that Item 0511-001-0001 be increased by $2,931,000 and reimbursements be increased by $1 million to support additional outreach efforts for the 2020 Census. This request will provide the California Complete Count - Census 2020 Office with additional resources for Native American outreach, translation services, and state agency outreach. It is also requested that provisional language be added to this item to allow the Department of Finance to augment the resources available for the Census Office's Statewide Outreach and Communications Strategy (see Attachment 1 ).

Census Office Positions-It is requested that provisional language be added to Item 0511-001-0001 to enable the Census Office to establish exempt positions for the limited time period that 2020 Census efforts are taking place (see Attachment 1 ).

Non-Disclosure of Personal Information-It is requested that trailer bill language be added to prohibit disclosure of personal information by the Department of Finance's Demographic Research Unit if requested under the Public Records Act (see Attachment 2). The state has not previously conducted its own post-Census enumeration study and while general law indicates that the personal information would be protected, there is nothing specific with regards to the survey information that will be collected. Federal statutes, such as Title 13, are in place to prevent the disclosure of personal information collected by the U.S. Census. Similarly, this trailer bill language would specifically limit right of access to the survey results.


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KEELY MARTIN BOSLER

Director By:


Attachment





Honorable Maria Elena Durazo, Chair, Senate Budget and Fiscal Review Subcommittee No. 4 Honorable Jim Cooper, Chair, Assembly Budget Subcommittee No. 4 Mr. Gabriel Petek, Legislative Analyst ( 4) Mr. Christopher W. Woods, Senate President pro Tempore's Office (2) Mr. Jason Sisney, Assembly Speaker's Office (2) Ms. Jayme Chick, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Joe Shinstock, Policy and Fiscal Director, Assembly Republican Leader's Office Mr. Justyn Howard, Deputy Secretary, Fiscal Policy and Administration, California Government

Operations Agency Ms. Ditas Katague, Director, California Complete Count - Census 2020 Office


Attachment 1

Add the following provisions to Item 0511-001-0001:

3. The Director of Finance may augment the amount in Schedule (2) by up to $22,500,000 to provide additional resources to the California Complete Count - Census 2020 Office's Statewide Outreach and Communications Strategy, which is designed to reach the State's hardest-to-count residents and encourage and support their full participation in the upcoming 2020 U.S. Census. The Director of Finance shall not approve any augmentation unless the approval is made in writing to the Chairperson of the Joint Legislative Budget Committee and the chairpersons of the committees in each house of the Legislature that considers appropriations not later than 30 days prior to the effective date of the approval, or not sooner than whatever lesser time the chairperson of the joint committee, or his or her designee, may determine. Additional funding augmented to this schedule shall be available for encumbrance or expenditure until June 30, 2021.

4. The Governor may appoint and fix the salaries of assistants and other personnel as he deems necessary for the California Complete Count - Census 2020 Office, within the Government Operations Agency. All appointments made to the California Complete Count - Census 2020 Office shall end no later than June 30, 2021.


SECTION 1. Section 13073 of the Government Code is amended to read:

Within the Department of Finance, there is the Population Research Unit Demographic Research Unit. Anv reference in law to the Population Research Unit should be read to mean the Demographic Research Unit. The purposes of the unit include, but are not limited to, the following:

(a) Providing adequate demographic data to aid effective state and local planning and policymaking. (b) Serving all levels of government and the private sector as the centralized state source of demographic data. (c) Assuring equitable classification of cities and counties according to population to provide equitable distribution of funds and tax rate limits. (d) Rendering advisory, investigational, or other similar service of relevance to the establishment of population and its composition to any city, county, district, association of cities, counties, districts or any other political subdivision or the federal government upon such terms and conditions as may be satisfactory to the director, provided that the state shall be reimbursed for all costs incurred in performing services authorized by this subdivision.

SECTION 2. Section 13073.5 of the Government is amended to read:

The Legislature finds and declares that: (1) population size and distribution patterns in California exert a major influence on the physical, social, and economic structure of the state and on the quality of the environment generally; (2) sound and current data and methods to estimate population trends are necessary to enable state, regional, and local agencies to plan and function properly; and (3) there is a critical need for a proper study of the implications of present and future population trends in order that state, regional, and local agencies might develop or reexamine policies and actions based thereon.

The Population Research Unit Demographic Research Unit shall:

(a) Develop basic demographic data and statistical compilations, which may include a current population survey and a mid-decade census. (b) Design and test methods of research and data collection. (c) Conduct local population estimates as required by law. (d) Validate all official census data and population statistics. (e) Analyze and prepare projections of enrollments in public schools, colleges, and universities. (f) Analyze governmental records to establish characteristics of migration and distribution. (g) Publish annual estimates of the population of the state and its composition. (h) Prepare short- and long-range projections of population and its composition. (i) Provide advisory services to state agencies and other levels of government. (j) Evaluate and recommend data requirements for determining population and population growth. (k) Analyze the demographic features of the causes and consequences of patterns of natural increase or decrease, migration, and population concentration within the state. (I) Assess the need for population data required for determining the allocation of federal, state, and other subvention revenues. (m) Request and obtain from any department, division, commission, or other agency of the state all assistance and information to enable the unit to effectively carry out the provisions of this section.


(n) Cooperate with the Office of Planning and Research with respect to functions involving mutual areas of concern relating to demography and state planning. (0) Enter into agreements to carry out the purposes of this section, including the application for and acceptance of federal funds or private foundation grants for demographic studies. (p) Act as primary state government liaison with the Census Bureau, United States Department of Commerce, in the acquisition and distribution of census data and related documentation to state agencies. (q) Administer, with other agencies, a State Census Data Center which will be responsible for acquiring decennial and other census data from the Bureau of the Census, and for providing

, necessary information to the Legislature and to the executive branch and for seeking to ensure the availability of census information to local governments. The unit and the Office of Planning and Research shall be responsible for designating subcenters of the State Census Data Center as needed. The unit will provide materials to subcenters of the State Census Data Center, will coordinate the efforts of the subcenters to avoid duplication and may consult in the design of standard reports to be offered by the center and its subcenters. (r) Coordinate with the Office of Planning and Research Environmental Data Center for the purposes of ensuring consistency and compatibility of data products, improving public access to data, ensuring the consistent interpretation of data, and avoiding duplication of functions, (s) (1) Determine those census tracts that are to be designated census tracts based on data from the five-year American Community Survey (ACS). The census tracts that are within the highest quartile for both civilian unemployment and poverty statistics, as determined in paragraphs (2) and (3), shall be determined to be designated census tracts as described in paragraph (7) of subdivision (b) of Section 17053.73, and paragraph (7) of subdivision (b) of Section 23626 of the Revenue and Taxation Code. (2) To determine the census tracts that are within the highest quartile of census tracts with the highest civilian unemployment, the census tracts shall be sorted by the respective civilian unemployment rate of each in ascending order, or from the lowest (0 percent) to the highest (100 percent) according to the following: (A) Census tracts without a civilian labor force shall be excluded. (B) After ordering the census tracts by the civilian unemployment rate of each, the census tracts shall be divided into four equal groups or quartiles as follows: (1) The first quartile shall represent the lowest fourth of the census tracts (the lowest 25 percent, inclusive). (ii) The second quartile shall represent the second fourth (tracts greater than 25 percent up to 50 percent, inclusive). (iii) The third quartile shall represent the third fourth (tracts greater than 50 percent up to 75 percent, inclusive). (iv) The fourth quartile shall represent the fourth fourth (tracts greater than 75 percent up to 100 percent, inclusive). (C) The last or highest quartile shall represent the top 25 percent of the census tracts with the highest civilian unemployment rates. (3) To determine the census tracts that are within the quartile of census tracts with the highest poverty, the census tracts shall be sorted by the respective percentage of population below poverty of each in ascending order, or from the lowest (0 percent) to the highest (100 percent) according to the following: (A) Consistent with poverty statistics in the ACS, which adhere to the standards specified by the federal Office of Management and Budget in Statistical Policy Directive 14, the poverty thresholds as specified by the United States Census Bureau shall be used to determine those individuals below poverty.


(B) To determine those individuals below poverty, different thresholds, as specified by the United States Census Bureau, shall be applied to families, people living alone, or people living with nonrelatives (unrelated individuals). (C) If a family's total income is less than the dollar value of the appropriate threshold, then that family and every individual in it shall be considered to be below poverty. (D) If an unrelated individual's total income is less than the appropriate threshold, then that individual shall be considered to be below poverty. (E) Poverty status shall be determined for all people except institutionalized people, people in military group quarters, people in college dormitories, and unrelated individuals under 15 years of age. (F) Census tracts that do not have a population for whom poverty status is determined shall be excluded. (G) After ordering the census tracts by the respective percent below poverty of each, the census tracts shall be divided into four equal quartiles as follows: (1) The first quartile shall represent the lowest fourth of the census tracts (the lowest 25 percent, inclusive). (ii) The second quartile shall represent the second fourth (tracts greater than 25 percent up to 50 percent, inclusive). (iii) The third quartile shall represent the third fourth (tracts greater than 50 percent up to 75 percent, inclusive). (iv) The fourth quartile shall represent the fourth fourth (tracts greater than 75 percent up to 100 percent, inclusive). (H) The last or highest quartile shall represent the top 25 percent of the census tracts with the highest percentage of population below poverty. (t) (1) Determine those census tracts that are within the lowest quartile of census tracts with the lowest civilian unemployment and poverty based on data from the five-year ACS. The census tracts that are within the lowest quartile for both civilian unemployment and poverty statistics, as determined in paragraphs (2) and (3) of subdivision (s), shall be determined to be census tracts within the lowest quartile of census tracts with the lowest civilian unemployment and poverty, as applied in subparagraph (A) of paragraph (8) of subdivision (b) of Section 17053.73 and Section 23626 of the Revenue and Taxation Code. (2) Based on the quartiles developed pursuant to paragraph (2) of subdivision (s), the first or lowest quartile shall represent the bottom 25 percent of the census tracts with the lowest civilian unemployment rates. (3) Based on the quartiles developed pursuant to paragraph (3) of subdivision (s), the first or lowest quartile shall represent the bottom 25 percent of the census tracts with the lowest percentage of population below poverty.

SECTION 3. Section 13073.6 is added to the Government Code, to read:

Notwithstanding subdivision (g) of section 1798.24 of the Civil Code, data collected, received, or prepared bv the Demographic Research Unit for the purposes specified in section 13073.5 containing personal information as defined bv subdivision (a) of section 1798.3 of the Civil Code shall be exempt from disclosure under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1.

SECTION 4. The Legislature finds and declares that Section 3 of this act, which adds Section 13073.6 of the Government 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:

This act balances the right of the public to access certain information collected, received or prepared by the Demographic Research Unit to develop accurate population estimates and projections while protecting the privacy of the individuals whose personal information is contained in the data.





Amendment to Budget Bill Item 0515-001-0001, Support, Business, Consumer Services, and Housing Agency

Homeless Coordinating and Finance Council-It is requested that Item 0515-001-0001 be increased by $981,000 and 6 positions to provide resources to the Council to continue work related to the Homeless Emergency Aid Program (HEAP). The 2018 Budget Act allocated $500 million one-time General Fund, to the Council to provide grants to the 43 Continuums of Care and the 11 largest cities. This request will provide necessary staff to carry out the administrative and reporting requirements for the Council under HEAP.


If you have any questions or need additional information regarding this matter, please call Danielle Brandon, Principal Program Budget Analyst, at (916) 445-3274.



Attachment


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Honorable Maria Elena Durazo, Chair, Senate Budget and Fiscal Review Subcommittee No. 4 Honorable Jim Cooper, Chair, Assembly Budget Subcommittee No. 4 Mr. Gabriel Petek, Legislative Analyst ( 4) Mr. Christopher W. Woods, Senate President pro Tempore's Office (2) Mr. Jason Sisney, Assembly Speaker's Office (2) Ms. Jayme Chick, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Joe Shinstock, Policy and Fiscal Director, Assembly Republican Leader's Office Ms. Alexis Podesta, Secretary, Business, Consumer Services and Housing Agency Ms. Tiffany Garcia, Deputy Secretary of Fiscal Policy and Administration, Business, Consumer

Services, and Housing Agency Ms. Lynn von Koch-Liebert, Deputy Secretary for Housing and Consumer Services, Business,

Consumer Services, and Housing Agency Ms. Ginny Puddefoot, Executive Officer, Homeless Coordinating and Financing Council, Business,

Consumer Services, and Housing Agency Ms. Anna Pozdyn, Administrative Operations Manager, Business, Consumer Services, and

Housing Agency





Amendment to Budget Bill Items 0530-001-0001 and 0530-001-9745, Support, Health and Human Services Agency

State Verification Hub Activities (Issue 405)-lt is requested that Item 0530-001-9745 be increased by $747,000 on a two-year limited-term basis to support 1 position and consultant services to begin planning activities for a State Verification Hub to enhance eligibility verifications in public assistance programs. (See related Issue 405 in the Department of Health Care Services and the Department of Social Services Finance Letters).

Staffing for Key Leadership Positions (Issue 406)-lt is requested that Item 0530-001-0001 be increased by $2,571,000 and 9 positions to provide staffing resources for the recently established Office of the Surgeon General, the Deputy Secretary for Early Childhood Development, and the Deputy Secretary for Behavioral Health within the Health and Human Services Agency. These new appointments will be integral to advancing the Governor's health and human services agenda. In addition, the requested funds will support an Assistant Secretary position currently funded by the Department of State Hospitals. (See related Issue 402 in the Department of State Hospitals Finance Letter).

Staffing Resources for the Reorganization of the Office of the Secretary (Issue 407)-lt is requested that Item 0530-001-0001 be increased by $873,000 and 6 positions to support a proposed reorganization of the California Health and Human Services Agency. The Agency has taken on a growing number of new projects under the Governor, such as the Alzheimer's Task Force, the Master Plan on Aging, and the Single-Payer Commission. These resources will enable the Agency to implement the Governor's vision for health and human services programs.


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If you have any questions or need additional information regarding this matter, please call Yang Lee, Principal Program Budget Analyst, at (916) 445-6423.



Attachment





Honorable Richard Pan, Chair, Senate Budget and Fiscal Review Subcommittee No. 3 Honorable Eloise Gomez Reyes, Acting Chair, Assembly Budget Subcommittee No. 1 Mr. Gabriel Petek, Legislative Analyst (4) Mr. Christopher W. Woods, Senate President pro Tempore's Office (2) Mr. Jason Sisney, Assembly Speaker's Office (2) Ms. Jayme Chick, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Joe Shinstock, Policy and Fiscal Director, Assembly Republican Leader's Office Mr. Mark Ghaly, Secretary, Health and Human Services Agency Ms. Michelle Baass, Undersecretary, Health and Human Services Agency Mr. Marko Mijic, Deputy Secretary, Health and Human Services Agency Ms. Paula Villescaz, Assistant Secretary, Health and Human Services Agency Mr. Dan Kalamaras, Director, Office of Systems Integration, Health and Human Services Agency Mr. Matt Schueller, Chief Deputy Director, Office of Systems Integration, Health and Human

Services Agency Mr. Mike French, Chief of Fiscal and Legislative Services Division, Office of Systems Integration,

Health and Human Services Agency






Amendment to Budget Bill Items 0555-001-0001 and 0555-001-0028, Support, California Environmental Protection Agency

Process Improvement Positions-It is requested that Item 0555-001-0001 be increased by $985,000 and 6 positions to implement process improvements that will benefit the boards, departments, and offices within the California Environmental Protection Agency. These positions will provide strategic planning leadership, improve internal and external communications, and enhance the coordination of departmental policies at the Agency level.

Aligning Expenditures with Revenues-It is requested that Item 0555-001-0028 be decreased by $1 million to reflect updated revenue projections for the Unified Program Account. This one-time reduction in expenditure authority is necessary given a delay in the collection of planned fee increases. Once fees are fully implemented, revenues are expected to fully cover the cost of the program by fiscal year 2020-21. This one-time reduction will allow Agency to control its expenditure levels to match current revenues, while ensuring the administration and support of the program is not compromised.


If you have any questions or need additional information regarding this matter, please call Teresa Calvert, Assistant Program Budget Manager, at (916) 324-0043.



Attachment


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Honorable Bob Wieckowski, Chair, Senate Budget and Fiscal Review Subcommittee No. 2 Honorable Richard Bloom, Chair, Assembly Budget Subcommittee No. 3 Mr. Gabriel Petek, Legislative Analyst (4) Mr. Christopher W. Woods, Senate President pro Tempore's Office (2) Mr. Jason Sisney, Assembly Speaker's Office (2) Ms. Jayme Chick, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Joe Shinstock, Policy and Fiscal Director, Assembly Republican Leader's Office Mr. Jared Blumenfeld, Secretary, California Environmental Protection Agency Mr. Eric Jarvis, Assistant Secretary, Fiscal and Administrative Programs, California Environmental

Protection Agency





Amendment to Budget Bill Item 0559-001-0001, Support, Labor and Workforce Development Agency

Future of Work Commission and Agency Operations-It is requested that Item 0559-001-0001 be increased by $2,470,000 and 27 positions to establish the Commission on California's Workforce and Future of Work, including 18 board members and 3 positions for 2 years to support the Commission, and $500,000 to contract for labor market research. This will also provide the Labor and Workforce Development Agency resources to enhance its labor enforcement and strategy operations in order to improve worker protections and workforce services and to adapt to changing labor markets.


If you have any questions or need additional information regarding this matter, please call Danielle Brandon, Principal Program Budget Analyst, at (916) 445-327 4.



Attachment


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Honorable Maria Elena Durazo, Chair, Senate Budget and Fiscal Review Subcommittee No. 4 Honorable Jim Cooper, Chair, Assembly Budget Subcommittee No. 4 Mr. Gabriel Petek, Legislative Analyst (4) Mr. Christopher W. Woods, Senate President pro Tempore's Office (2) Mr. Jason Sisney, Assembly Speaker's Office (2) Ms. Jayme Chick, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Joe Shinstock, Policy and Fiscal Director, Assembly Republican Leader's Office Ms. Julie Su, Secretary, Labor and Workforce Development Agency Mr. Jay Sturges, Assistant Secretary, Fiscal Policy, Labor and Workforce Development Agency





Amendment to Budget Bill Item 0650-001-0001, Support, and Item 0650-101-0001, Local Assistance, Office of Planning and Research

California For All Emergency Preparedness Campaign Administration-It is requested that Item 0650-001-0001 be increased by $387,000 to support the implementation and administration of the California For All Emergency Preparedness Campaign. Chapter 1, Statutes of 2019 (AB 72) included $30 million one-time General Fund for grants to be administered by California Volunteers for the California For All Emergency Preparedness Campaign. This request provides the resources necessary to administer these grants.

Administration Resources-It is requested that provisional language be added to Item 0650-001-0001 to enable the Office of Planning and Research to utilize up to 5 percent of local assistance funding for administration costs (see Attachment 1 ). This language would allow the Office of Planning and Research to have the flexibility to establish administrative resources, if necessary, when implementing one-time programs and activities.

Student Loan Awareness Initiative Adjustment-It is requested that Item 0650-101-0001 be decreased by $5 million and Provision 2 be eliminated to shift the Student Loan Awareness Initiative Governor's Budget proposal to the California Student Aid Commission.

Innovation Award Program-It is requested that Provision 1 of Item 0650-101-0001 be amended to add K-12 institutions as eligible recipients of grants for innovative educational strategies in the San Joaquin and Inland Empire regions of the state, to clarify areas of emphasis for these grants, to authorize the use of up to 5 percent of grant funds for administrative costs, and to add reporting requirements (see Attachment 2).

May 9, 2019

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KEELY MARTIN BOSLER

Director By:

VIVEK VISWANATHAN

Chief Deputy Director

Attachment





Honorable Maria Elena Durazo, Chair, Senate Budget and Fiscal Review Subcommittee No. 4 Honorable Jim Cooper, Chair, Assembly Budget Subcommittee No. 4 Mr. Gabriel Petek, Legislative Analyst (4) Mr. Christopher W. Woods, Senate President pro Tempore's Office (2) Mr. Jason Sisney, Assembly Speaker's Office (2) Ms. Jayme Chick, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Joe Shinstock, Policy and Fiscal Director, Assembly Republican Leader's Office Ms. Kate Gordon, Director, Office of Planning and Research Mr. Scott Morgan, Deputy Director, Office of Planning and Research Ms. Mai Yang, Budget Officer, Office of Planning and Research


Attachment 1


1. Upon order of the Department of Finance, up to 5 percent of funding appropriated to Office of Planning and Research local assistance items shall be transferred to Item 0650-001-0001 for administration costs. Funds transferred pursuant to this provision shall have the same encumbrance and expenditure period as the item the funds are transferred from.

Attachment 2

Amend Provision 1 of Item 0650-101-0001 as follows:

" 1 . Of the funds appropriated in this item, $10,000,000 shall be available for grants to higher education institutions in the San Joaquin and Inland Empire regions of the state to implement innovative educational strategiesv, with particular emphasis on the following:

(a) Programs expected to better align secondarv and postsecondarv programs and increase postsecondarv capacitv.

(b) Programs expected to reduce achievement gaps bv furthering student success for all students, regardless of race, gender, age, disabilitv. or economic circumstances.

(c) Programs capable of creating a multi-generational culture of educational attainment bv focusing on strategies to improve students' successful completion of degree and certificate programs, increasing students' future earnings potential, and ending the cvcle of povertv that manv students, and subseguentiv their children, mav experience.

1.1. Not more than 5 percent of the amount allocated in Provision 1 of this item may be used for administrative costs. In awarding grants pursuant to Provision 1 of this item, the Office of Planning and Research mav consider innovations that encourage or reguire partnership between institutions of higher education and other entities.

1.2. Bv July 1, 2020, the Office of Planning and Research shall report to the Director of Finance and the Legislature a summary of the activities supported bv the grants awarded pursuant to Provision 1 of this item. By January 1, 2022, the Office of Planning and Research shall report to the Director of Finance and the Chairperson of the Joint Legislative Budget Committee a summary of student outcomes, including, but not limited to, the number of degrees and certificates awarded and the time it took students to complete their program."





Addition of Budget Bill Item 0690-492, Support, Office of Emergency Services

Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Proposition 1 B) Extension of Liquidation-It is requested that Item 0690-492 be added to extend the liquidation period of Item 0690-101-6061 from various prior fiscal years to enable cities, counties, and transit districts to continue to liquidate unexpended grant funds for transportation security and improvement projects (see Attachment 1 ).

Proposition 1 B provided $1 billion to the Office of Emergency Services (Cal OES) for transportation security purposes. Although Cal OES has allocated all of its apportioned Proposition 1 B funds through grants to cities, counties, and local transit districts, grantees need additional time to liquidate their allocations. An extension of the liquidation period will allow local entities to complete their critical transportation security improvement projects.





Attachment

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Honorable Nancy Skinner, Chair, Senate Budget and Fiscal Review Subcommittee No. 5 Honorable Shirley Weber, Chair, Assembly Budget Subcommittee No. 5 Mr. Gabriel Petek, Legislative Analyst (4) Mr. Christopher W. Woods, Senate President pro Tempore's Office (2) Mr. Jason Sisney, Assembly Speaker's Office (2) Ms. Jayme Chick, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Joe Shinstock, Policy and Fiscal Director, Assembly Republican Leader's Office Mr. Mark Ghilarducci, Director, Governor's Office of Emergency Services Ms. Grace Koch, Chief Deputy Director, Governor's Office of Emergency Services Ms. Tabitha Stout, Assistant Director of Administrative Services, Governor's Office of Emergency

Services

Attachment 1

0690-492—Reappropriation, Office of Emergency Services. Notwithstanding any other provision of law, including Section 8879.61 of the Government Code, the period to liquidate allocations of the following citations is extended until June 30, 2021, except as otherwise stated:

6061—Transit System Safety, Security, and Disaster Response Account, Highway Safety, Traffic Reduction, Air Quality, and Port Security Fund of 2006 (1) Item 0690-101-6061, Budget Act of 2007 (Chs. 171 and 172, Stats. 2007) (2) Item 0690-101-6061, Budget Act of 2008 (Chs. 268 and 269, Stats. 2008) (3) Item 0690-101-6061, Budget Act of 2009 (Ch. 1, 2009-10 3'" Ex. Sess., as revised by Ch. 1,

2009-10 4"^ Ex. Sess), as reappropriated by Item 0690-490, Budget Act of 2012 (Chs. 21 and29. Stats. 2012)

(4) Item 0690-101-6061, Budget Act of 2010 (Ch. 712, Stats. 2010) (5) Item 0690-101-6061, Budget Act of 2011 (Ch. 33, Stats. 2011) (6) Item 0690-101-6061, Budget Act of 2012 (Chs. 21 and 29, Stats. 2012) (7) Item 0690-101-6061, Budget Act of 2013 (Chs. 20 and 354, Stats. 2013) (8) Item 0690-101-6061, Budget Act of 2014 (Chs. 25 and 663, Stats. 2014) shall be available

for liquidation until June 30, 2022 (9) Item 0690-101-6061, Budget Act of 2015 (Chs. 10 and 11, Stats. 2015) shall be available for

liquidation until June 30, 2022 (10) Item 0690-101-6061, Budget Act of 2016 (Ch. 23, Stats. 2016) shall be available for

liquidation until June 30, 2022





Amendment to and Addition of Various Budget Bill Items, Support and Local Assistance, Governor's Office of Emergency Services

Student, Teachers, and Officers Preventing (STOP) School Violence Act of 2018-lt is requested that Item 0690-001-0890 be increased by $550,000 and Item 0690-102-0890 be increased by $450,000, for a total of $1 million one-time funding, to develop and administer a grant program related to the federal STOP School Violence Act of 2018. The increased federal funding will allow the Governor's Office of Emergency Services (Cal OES) to implement statewide school security strategies related to violence intervention and prevention, and to develop data for best practices and guidelines for use by local education agencies throughout the state. In addition, the funding will allow Cal OES to implement crisis intervention teams to mitigate against threats and acts of school violence.

Nonprofit Security Grant Program-It is requested that Item 0690-103-0001 be added in the amount of $15 million in one-time funding for Cal OES' Nonprofit Security Grant Program to help nonprofit organizations that are targets of hate-motivated violence and hate crimes (see Attachment 1). It is also requested that provisional language be added to allow up to 5 percent of the funds to be used for administrative costs, consistent with other grant programs.

California Disaster Assistance Act Adjustment-It is requested that Item 0690-112-0001 be increased by $8,750,000 to reflect updated California Disaster Assistance Act (CDAA) projections. CDAA is a disaster assistance program administered by Cal OES that provides financial assistance to local governments for costs incurred as a result of a disaster. Because it is difficult to estimate the annual CDAA need, this appropriation is adjusted at both Governor's Budget and May Revision as updated projections are available.

May 9, 2019

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Fire Fleet and Early Earthquake Warning System Extension of Liquidation-It is requested that Item 0690-490 be added to extend to June 30, 2020, the liquidation period of funding included in the Budget Act 2016, to complete the procurement and installation process of the Early Earthquake Warning System and the acquisition and deployment of Cal OES' 2016 Fire Fleet Vehicle Acquisition program. Both of these activities are under contract and the funding is encumbered, but because of vendor delays with both procurement projects, additional time is required for the vendors to complete their contractual obligations (see Attachment 2).





Attachment





Honorable Nancy Skinner, Chair, Senate Budget and Fiscal Review Subcommittee No. 5 Honorable Shirley Weber, Chair, Assembly Budget Subcommittee No. 5 Mr. Gabriel Petek, Legislative Analyst (4) Mr. Christopher W. Woods, Senate President pro Tempore's Office (2) Mr. Jason Sisney, Assembly Speaker's Office (2) Ms. Jayme Chick, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Joe Shinstock, Policy and Fiscal Director, Assembly Republican Leader's Office Mr. Mark Ghilarducci, Director, Governor's Office of Emergency Services Ms. Grace Koch, Chief Deputy Director, Governor's Office of Emergency Services Ms. Tabitha Stout, Assistant Director of Administrative Services, Governor's Office of Emergency

Services


Attachment 1

0690-103-0001—For local assistance, Office of Emergency Services 15,000,000

Schedule: (1) 0385-Special Programs and Grant Management 15,000,000

Provisions: 1. The funding appropriated in this item is for the California Nonprofit Security Grant Program to

help non-profit organizations that are targets of hate-motivated violence and hate crimes. Up to 5 percent of the amount appropriated in this item may be used for administrative support costs.

Attachment 2

0690-490—Reappropriation, Office of Emergency Services. Notwithstanding any other provision of law, the period to liquidate encumbrances in the amount specified below of the following citations is extended until June 30, 2020:

0001—General Fund (1) Up to $9,914,000 in Item 0690-001-0001, Budget Act of 2016 (Ch. 23, Stats. 2016),

appropriated for the Early Earthquake Warning System and the Fire Fleet Vehicle Acquisition.





Amendment to Budget Bill Item 0750-001-0001, Support, Office of the Lieutenant Governor

It is requested that Item 0750-001-0001 be increased by $500,000 and 4 positions to support the Office of the Lieutenant Governor. The positions are a Communications Director, Environmental Analyst, Higher Education Analyst, and Constituent Support Services Specialist. The Lieutenant Governor's primary roles are to serve on various boards, chair the State Lands Commission, serve as a voting member on the University of California Board of Regents and California State University Board of Trustees, and serve as acting Governor when the Governor is out of the state. These positions will improve constituent affairs by enabling the Office to respond to the numerous calls and emails received daily, and allow the Lieutenant Governor to fulfill its duties and best represent the people of California.





Attachment


May 9, 2019


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Honorable Maria Elena Durazo, Chair, Senate Budget and Fiscal Review Subcommittee No. 4 Honorable Jim Cooper, Chair, Assembly Budget Subcommittee No. 4 Mr. Gabriel Petek, Legislative Analyst (4) Mr. Christopher W. Woods, Senate President pro Tempore's Office (2) Mr. Jason Sisney, Assembly Speaker's Office (2) Ms. Jayme Chick, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Joe Shinstock, Policy and Fiscal Director, Assembly Republican Leader's Office Ms. Panorea Avdis, Chief of Staff, Office of the Lieutenant Governor





Amendment to Various Budget Bill Items and Reimbursements, Support, Department of Justice and Department of Consumer Affairs

Controlled Substance Utilization Review and Evaluation System {CURES) Proposals-It is requested that Item 0820-001-0001 be amended by increasing reimbursements by $2,670,000 and 4 positions for various CURES proposals, including implementation of Chapter 479, Statutes of 2018 (AB 1753), Chapter 4, Statutes of 2019 (AB 149), and Chapter 478, Statutes of 2018 (AB 1751 ). This request also includes resources to continue funding 4 existing positions that support the CURES database. The Department of Justice will be reimbursed for these costs from the CURES Fund, which is administered by Department of Consumer Affairs. Therefore, it is requested that Item 1111-001-3252 be increased by $2,804,000 to fund these proposals.

Payment of Settlements and Judgments-It is requested that Item 0820-001-0001 be increased by $2,069,000 to pay for five settlements related to the Reproductive Freedom, Accountability, Comprehensive Care, and Transparency Act. It is also requested that provisional language be added to clarify that these funds are for these specific settlement and judgment costs (see Attachment 1 ).

Cardroom and Third-Party Provider Workload-It is requested that Schedule (1) of Item 0820-001-0001 be increased by $550,000 and Schedule (2) of Item 0820-001-0001 be decreased by $550,000 for administration costs. It is also requested that Item 0820-001-0567 be increased by $4,399,000 to continue funding 32 positions that process license applications, renewals, and background investigations for cardrooms and third-party providers to reduce the current backlog of license applications. It is also requested that provisional language be added to enable the Department of Finance to augment or reduce the budget based on workload changes (see Attachment 2).

May 9, 2019

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KEELY MARTIN BOSLER Director B� /


Attachment





Honorable Nancy Skinner, Chair, Senate Budget and Fiscal Review Subcommittee No. 5 Honorable Shirley Weber, Chair, Assembly Budget Subcommittee No. 5 Mr. Gabriel Petek, Legislative Analyst ( 4) Mr. Christopher W. Woods, Senate President pro Tempore's Office (2) Mr. Jason Sisney, Assembly Speaker's Office (2) Ms. Jayme Chick, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Joe Shinstock, Policy and Fiscal Director, Assembly Republican Leader's Office Mr. Chris Ryan, Director of Operations, Department of Justice


Attachment 1


4. Of the funds appropriated in Schedule (4), $2,069,000 shall be available for settlements and judgements related to the Reproductive Freedom, Accountability, Comprehensive Care, and Transparency Act. Any unexpended funds shall revert to the General Fund.

Attachment 2


1. The Department of Finance may augment or reduce the amount in Schedule (2) of this item based on workload changes related to the processing of license applications, renewals, and background investigations for cardrooms and third-party providers. The Director of Finance shall not approve any augmentation or reduction unless the approval is made in writing to the Chairperson of the Joint Legislative Budget Committee not later than 30 days prior to the effective date of the approval, or not sooner than whatever lesser time the chairperson of the joint committee, or his or her designee, may determine.





Amendment to Budget Bill Items 0840-001-0001, 0840-001-0970, and 0840-001-9740, Support, State Controller's Office

California State Payroll System Project-It is requestep that Item 0840-001-0001 be increased by $1,275,000 in fiscal year 2019-20 ($1,253,000 in 2020-21, $1,254,000 in 2021-22, and $471,000 in 2022-23 and ongoing), and Item 0840-001-9740 be increased by $961,000 in 2019-20 ($944,000 in 2020-21, $945,000 in 2021-22, and $355,000 in 2022-23 and ongoing), to support 6 positions and contracted service costs during the Project Approval Lifecycle process.

It is further requested that provisional language be added to reflect this change (see Attachment 1 ).

Personnel Cost Adjustments-It is requested that Item 0840-001-0001 be increased by $589,000 in 2019-20 and ongoing, Item 0840-001-9740 be increased by $447,000 in 2019-20 and ongoing, and Item 0840-001-0970 be increased by $56,000 in 2019-20 and ongoing to support increased personnel costs as a result of the Financial Accountant series reclassification in 2017-18 and statewide Information Technology class consolidation reclassifications.

Statewide Retirement Reconciliation Program-It is requested that Item 0840-001-0001 be increased by $1,230,000 in 2019-20 ($1,099,000 in 2020-21 and ongoing), and Item 0840-001-97 40 be increased by $829,000 in 2019-20 and ongoing to support 15 continuing positions to address ongoing workload, and resources to work with CalPERS to resolve data translation errors between the legacy systems and the mylCalPERS system.


Settlement Claims-It is requested that Item 0840-001-0001 be increased by $9.5 million in 2019-20 to pay the class action settlements of Nancy Baird, et al. v. Betty T. Yee, et al (2016) and Janis McLean v. State of California (2016).


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CalATERS-lt is requested that Item 0840-001-0001 be decreased by $704,000 in 2019-20 through 2021-22.


If you have any questions or need additional information regarding this matter, please call Susan Wekanda, Principal Program Budget Analyst, at (916) 445-5332.



Attachment





Honorable Maria Elena Durazo, Chair, Senate Budget and Fiscal Review Subcommittee No. 4 Honorable Jim Cooper, Chair, Assembly Budget Subcommittee No. 4 Mr. Gabriel Petek, Legislative Analyst (4) Mr. Christopher W. Woods, Senate President pro Tempore's Office (2) Mr. Jason Sisney, Assembly Speaker's Office (2) Ms. Jayme Chick, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Joe Shinstock, Policy and Fiscal Director, Assembly Republican Leader's Office Honorable Betty Yee, State Controller Ms. Karen Greene Ross, Chief of Staff, State Controller's Office Mr. George Lolas, Chief Operating Officer, State Controller's Office Ms. Jan Ross, Chief Administrative Officer, State Controller's Office Ms. Jennifer Chavez, Chief of Administration and Disbursements, State Controller's Office Ms. Jennifer Urban, Chief of Budgets and Contracts Bureau, State Controller's Office Ms. An-Vi Ching, Budget Officer, State Controller's Office


Attachment 1 Add the following provisions to Item 0840-001-0001:

15. Of the amount appropriated in this item and in Item 0840-001-9740, up to $41,000 in the 2019-20 fiscal year is available for the California State Payroll System project for Prosci Manager and Prosci Practitioner training for SCO staff. Any funds for the contract not encumbered by June 30, 2020, shall revert to the General Fund.

16. Of the amount appropriated in this item and in Item 0840-001-9740, in the 2019-20 fiscal year and until the 2021-22 fiscal year, for the California State Payroll system project:

(a) Up to $343,000 is available to reimburse CalHR interagency agreement costs. (b) Up to $496,000 is available for data conversion vendor costs. (c) Up to $310,000 is available for Independent Verification and Validation vendor costs and

shall be used solely for that purpose. (d) Up to $145,000 is available to reimburse CDT consulting costs. (e) Up to $75,000 is available for Requirements Management Tool costs.

Any funds not encumbered by June 30, 2020 for the purposes set forth in this provision, shall revert to the General Fund.

17. Of the amount appropriated in this item up to $131,000 is available to reimburse CalPERS interagency agreement costs to resolve data translation errors between the legacy systems and the myjCalPERS system. Any funds for the agreement not encumbered by June 30, 2020, shall revert to the General Fund.

18. Of the amount appropriated in this item, up to $2,700,000 is available for the state's share of costs in the settlement of Nancy Baird, et al. v. Betty T. Yee, et al (2016).

19. Of the amount appropriated in this item, up to $6,800,000 is available for the state's share of costs in the settlement of Janis McLean v. State of California (2016) Ct.App.3 C074515.





Amendment to Budget Bill Item 0870-001-0001, Support, Office of Tax Appeals

It is requested that Item 0870-001-0001 be increased by $2,762,000 and 13 positions to provide additional staffing. With the appeal processes developed, and workload data more refined after a year of hearing appeals, it is apparent that the Office of Tax Appeals needs additional resources to fulfill its mission.


If you have any questions or need additional information regarding this matter, please call Chris Hill, Principal Program Budget Analyst, at (916) 445-327 4.



Attachment


May 9, 2019


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Honorable Maria Elena Durazo, Chair, Senate Budget and Fiscal Review Subcommittee No. 4 Honorable Jim Cooper, Chair, Assembly Budget Subcommittee No. 4 Mr. Gabriel Petek, Legislative Analyst (4) Mr. Christopher W. Woods, Senate President pro Tempore's Office (2) Mr. Jason Sisney, Assembly Speaker's Office (2) Ms. Jayme Chick, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Joe Shinstock, Policy and Fiscal Director, Assembly Republican Leader's Office Mr. Mark lbele, Director, Office of Tax Appeals Ms. Jeanna Wimberly, Deputy Director, Office of Tax Appeals





Amendment to Budget Bill Item 0890-001-0001, Support, and Addition of Item 0890-101-0001, Local Assistance, and Trailer Bill Language, Secretary of State

New Motor Voter Costs-It is requested that Item 0890-001-0001 be increased by $2,945,000 on a one-time basis to provide additional funding to complete necessary validation of voter information transmitted from the Department of Motor Vehicles (DMV) to the Secretary of State (SOS) VoteCal system.

Chapter 729, Statutes of 2015 (AB 1461) required the SOS and DMV to establish the California New Motor Voter Program for the purpose of increasing opportunities for voter registration by any person who is qualified to be a voter. Since the program's implementation, additional resources have been needed that were beyond the scope planned for to implement the New Motor Voter Program and also beyond the scope of the regular VoteCal maintenance and operations activities. The proposal is an interim measure as DMV and SOS work to improve voter registration data transmission between their systems.

Voting Systems Replacement for Counties-It is requested that Item 0890-101-0001 be added in the amount of $87,265,000 for the purchase of voting systems and technology in all 58 counties.

The 2018 Budget Act provided one-time funding of $134 million for the replacement of voting systems and technology. The funding provided reimbursement to counties by matching county funds spent on voting system replacement activities on a dollar-for-dollar basis, up to the maximum amount of funds allocated for this purpose. This funding will provide an additional 25 percent of the estimated vote center model costs for counties with over 50 precincts, which brings the state's investment to 75 percent of the total estimated costs. For counties with fewer than 50 precincts, the state will cover 100 percent of the estimated costs for the polling place model. Further, this request also will provide funding for county election management system replacement. In addition, trailer bill language is proposed to guide the expenditure of this funding ( see Attachment 1 ).


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If you have any questions or need additional information regarding this matter, please call Clint Kellum, Assistant Program Budget Manager, at (916) 445-8913.



Attachment





Honorable Maria Elena Durazo, Chair, Senate Budget and Fiscal Review Subcommittee No. 4 Honorable Jim Cooper, Chair, Assembly Budget Subcommittee No. 4 Mr. Gabriel Petek, Legislative Analyst (4) Mr. Christopher W. Woods, Senate President pro Tempore's Office (2) Mr. Jason Sisney, Assembly Speaker's Office (2) Ms. Jayme Chick, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Joe Shinstock, Policy and Fiscal Director, Assembly Republican Leader's Office Honorable Alex Padilla, Secretary of State Ms. Lizette Mata, Deputy Secretary of State, Operations Division, Secretary of State Ms. Susan Lapsley, Deputy Secretary of State, Elections Division, Secretary of State Ms. Cindy Halverstadt, Chief, Management Services Division, Secretary of State Ms. Kristin Dagsher, Fiscal Affairs Bureau Chief, Management Services Division, Secretary of State

Mr. Russell Vaneekhoven, Budget and Systems Section Manager, Management Services Division, Secretary of State



Amend Elections Code 19400 as follows: "For purposes of this chapter, the following definitions apply:

(a) "Ballot on demand system" means a ballot manufacturing system, as defined in Section 303.4, that is subject to Sections 13004 and 13004.5.

(b) "Electronic poll book" means an electronic list of registered voters that may be transported to the polling location or vote center pursuant to Section 2550.

(c) "Remote accessible vote by mail system" means a system, as defined in Section 303.3, that is certified pursuant to Chapter 3.5 (commencing with Section 19280) of Division 19.

(d) "Vote by mail ballot drop box" means a secure receptacle established by a county or city and county elections official whereby a voted vote by mail ballot may be returned to the elections official from whom it was obtained pursuant to Section 3025.

(e) "Voting system" means any voting machine, voting device, or vote tabulating device that does not use prescored punch card ballots.

(f) "Election management system" means a system that is used by a countv in the state to track voter registration or voter preferences, including, for example, a voters vote-bv-mail status."

Amend Elections Code 19402 as follows: ^ ( a ) ( 1 ) T h e Secretary of State shall use the funds appropriated to him or her in the Budget Act of 2018 and the Budget Act of 2019 for voting system replacement for counties by awarding reimbursement contracts to counties for voting system replacement using the funding allocation described in subdivision (b). To receive reimbursement, a county shall provide matching funds that are at least equivalent to one-third of the state funds received for the eligible expenditures described in subdivision (d).

(2) Notwithstanding paragraph (1). counties that operated 50 or fewer precincts in the November 2016 election shall not be required to provide matching funds to receive an allocation from the state.

(b) The Secretary of State shall allocate funding for a contract described in subdivision (a) based on the size of the county, the number of voters registered in the county, and the Secretary of State's estimate of need for county voting equipment.

(c) A contract described in subdivision (a) shall permit a county to apply to the Secretary of State for reimbursement costs incurred in connection with the activities described in subdivision (d) in a manner consistent with all of the following:

(1) The county may seek reimbursement for payments made pursuant to a purchase agreement, lease agreement, or other contract made after April 29, 2015.

(2) The funded activities described in subparagraph (A) of paragraph (1) of subdivision (d) shall be for new voting systems that have been certified pursuant to the California Voting System Standards.

(3) The county shall provide the Secretary of State with documentation of the payment for which reimbursement is sought, and of the purchase agreement, lease agreement, or other contract pursuant to which the reimbursed payment was made.

(4) The Secretary of State shall verify that payment for which reimbursement is sought meets the criteria set forth in the contract described in subdivision (a) before reimbursing the county.


(5) The Secretary of State shall reimburse the county by matching county funds spent on voting system replacement activities described in subdivision (d) on a dollar for dollar three-to-one basis, up to the maximum amount of funds allocated for the contract pursuant to subdivision (b).

(d) For purposes of this chapter, reimbursable voting system replacement activities include all of the following:

(1) The purchase or lease of any of the following:

(A) A voting system certified or conditionally approved by the Secretary of State that does not use prescored punch card ballots.

(B) Electronic poll books certified by the Secretary of State.

(C) Ballot on demand systems certified by the Secretary of State.

(D) Vote by mail ballot drop boxes that comply with any applicable regulations adopted by the Secretary of State pursuant to subdivision (b) of Section 3025.

(E) Remote accessible vote by mail systems certified or conditionally approved by the Secretary of State.

(F) Telecommunication technologies to facilitate electronic connection, for the purpose of voter registration, between polling places, vote centers, and the office of the county elections official or the Secretary of State's office.

(G) Vote by mail ballot sorting and processing equipment.

(H) Election Management System.

(2) Research and development of a new voting system that has not been certified or conditionally approved by the Secretary of State, but that would result in a voting system certified by the Secretary of State to comply with the California Voting System Standards. A voting system developed pursuant to this paragraph shall use only nonproprietary software and firmware with disclosed source code, except that it may use unmodified commercial off-the-shelf software and firmware, as defined in paragraph (1) of subdivision (a) of Section 19209.

(3) (A) Manufacture of the minimum number of voting system units reasonably necessary for either of the following purposes:

(i) Testing and seeking certification or conditional approval for the voting system pursuant to Sections 19210 to 19214, inclusive.

(ii) Testing and demonstrating the capabilities of the voting system in a pilot program pursuant to paragraph (2) of subdivision (b) and subdivision (c) of Section 19209.

(B) For purposes of this paragraph, "voting system" includes a part of a voting system.

(4) If a county uses funding provided to it for the activities described in paragraph (2) or (3), and those activities do not result in a voting system certified by the Secretary of State to comply with the California Voting System Standards by July 1, 2023, the county shall return the state funding provided for those activities to the State. If the county does not return the funding by June 30, 2024, the State Controller shall withhold any payment to the county in an equivalent amount, as directed by the Department of Finance.

(e) A voting system purchased or leased by a county for which the county seeks reimbursement from the Secretary of State pursuant to this section and that does not require a voter to directly


mark on the ballot must produce, at the time the voter votes his or her ballot or at the time the polls are closed, a paper version or representation of the voted ballot or of all of the ballots cast on a unit of the voting system. The paper version shall not be provided to the voter but shall be retained by elections officials for use during the 1 percent manual tally described in Section 15360, or any recount, audit, or contest."





Amendment to Budget Bill Item 0950-001-0001 and Reimbursements, Support, State Treasurer's Office

It is requested that Item 0950-001-0001 be increased by $7 million and reimbursements be decreased by a like amount. This adjustment realigns the funding structure of the State Treasurer's Office to better reflect the services provided to state agencies.

The State Treasurer's Office utilized an independent consultant to conduct a study to determine the appropriate funding allocation for the workload responsibilities assigned to and completed by the Office. The result of this analysis formed the basis of this request.


If you have any questions or need additional information regarding this matter, please call Greg Bruss, Principal Program Budget Analyst, at (916) 445-5332.



Attachment


May 9, 2019


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Honorable Maria Elena Durazo, Chair, Senate Budget and Fiscal Review Subcommittee No. 4

Honorable Jim Cooper, Chair, Assembly Budget Subcommittee No. 4 Mr. Gabriel Petek, Legislative Analyst (4) Mr. Christopher W. Woods, Senate President pro Tempore's Office (2) Mr. Jason Sisney, Assembly Speaker's Office (2) Ms. Jayme Chick, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Joe Shinstock, Policy and Fiscal Director, Assembly Republican Leader's Office Honorable Fiona Ma, State Treasurer Ms. Genevieve Jopanda, Chief of Staff, State Treasurer's Office





Addition of Trailer Bill Language, Support, California Secure Choice Retirement Savings Investment Board

It is requested that trailer bill language (see Attachment 1) be added to amend statute to: (1) shift the responsibility for disseminating employee information packets for theCalSavers Retirement Savings Program (CalSavers) from the Employment DevelopmentDepartment (EDD) to CalSavers, (2) provide EDD with more flexibility in the timeline to beginenforcing employer compliance, and (3) allow EDD to share employer data with CalSavers.


If you have any questions or need additional information regarding this matter, please call Evelyn Suess, Principal Program Budget Analyst, at (916) 445-3274.



Attachment


May 9, 2019


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Honorable Maria Elena Durazo, Chair, Senate Budget and Fiscal Review Subcommittee No. 4 Honorable Jim Cooper, Chair, Assembly Budget Subcommittee No. 4 Mr. Gabriel Petek, Legislative Analyst (4) Mr. ChristopherW. Woods, Senate President pro Tempore's Office (2) Mr. Jason Sisney, Assembly Speaker's Office (2) Ms. Jayme Chick, Deputy Chief of Staff, Policy, Assembly Republican Leader's Office Mr. Joe Shinstock, Policy and Fiscal Director, Assembly Republican Leader's Office Honorable Fiona Ma, State Treasurer Ms. Genevieve Jopanda, Chief of Staff, State Treasurer's Office Ms. Becky Grajski, Director of Administration, State Treasurer's Office Ms. Karma Manni, Budget Officer, State Treasurer's Office Ms. Katie Selenksi, Executive Director, CalSavers Retirement Savings Program


Section 1. Section 100014 of Government Code is amended to read:

100014. (a) Prior to opening the CalSavers Retirement Savings Program for enrollment, the board shall design and disseminate to employers through the Employment Development Department (EDD) an employee information packet that shall be available in an electronic format. The packet shall include background information on the program and appropriate disclosures for employees. (b) The disclosure form shall include, but not be limited to, all of the following: (1) The benefits and risks associated with making contributions to the program. (2) The mechanics of how to make contributions to the program. (3) How to opt out of the program. (4) The process for withdrawal of retirement savings. (5) How to obtain additional information on the program. (c) In addition, the disclosure form shall clearly articulate the following: (1) Employees seeking financial advice should contact financial advisors, that employers do not provide financial advice, that employees are not to contact their employers for financial advice, and that employers are not liable for decisions employees make pursuant to Section 100034. (2) This retirement program is not sponsored by the employer, and therefore the employer is not responsible for the plan or liable as a plan sponsor. (3) The program fund is not guaranteed by the State of California. (d) The disclosure form shall include a method for the employee to acknowledge that the employee has read all of the disclosures and understands their content. (e) The employee information packet shall also include an opt-out form for an eligible employee to note his or her decision to opt out of participation in the program. The opt-out notation shall be simple and concise and drafted in a manner that the board deems necessary to appropriately evidence the employee's understanding that he or she is choosing not to automatically deduct earnings to save for retirement. (f) The employee information packet with the disclosure and opt-out forms shall be made available to employers eligible emploveesthrouqh EDD by the CalSavers Retirement Savings Program and supplied to employees at the time of hiring. All new employees shall review the packet and acknowledge having received it. (g) The employee information packet with the disclosure and opt-out forms shall be supplied to existing employees when the program is initially launched for that participating employer pursuant to Section 100032.

Section 2. Section 1088.9 of Unemployment Insurance Code is amended to read:

1088.9. (a) The department shall have the power and duties necessary to administer the enforcement of employer compliance with Title 21 (commencing with Section 100000) of the Government Code. (b) An eligible employer shall use the opt-out form in the employee information packet disseminated by the department to create an option for an eligible employee to note his or her decision to opt out of utilizing the CalSavers Retirement Savings Program. (e) (b) Each eligible employer that, without good cause, fails to allow its eligible employees to participate in the CalSavers Retirement Savings Program pursuant to Sections 100014 and 100032 of the Government Code, on or before 90 days after service of notice by the director pursuant to Section 1206 of its failure to comply, shall pay a penalty of two hundred fifty dollars ($250) per eligible employee if noncompliance extends 90 days or more after the notice, and if


found to be in noncompliance 180 days or more after the notice, an additional penalty of five hundred dollars ($500) per eligible employee.

(c) The department shall enforce this penalty as part of its existing investigation and audit function. (e) (d) The provisions of this article, the provisions of Article 9 (commencing with Section 1176), with respect to refunds and overpayments, and the provisions of Article 11 (commencing with Section 1221), with respect to administrative appellate review shall apply to the penalty imposed by this section. Penalties collected pursuant to this section shall be deposited in the contingent fund. (e) If the department participates in the implementation and administration of the program, it may charge the board a reasonable fee for costs it incurs for implementing and administering the program. (f) This section shall bocome operative six months aftor the board notifies the Director of Employment Developmont that the full implementation of Title 21 (commencing with Section 100000) of the Government Code will proceed. Upon receipt of tho notification from the board, the department shall immediately post on its Internot Web site a notice stating that this section is operative, and the date that it is first operative. (f) This section shall only become operative if: (1) the board notifies the Director of the Employment Development Department that enforcement should proceed and (2) a reasonable implementation timeline is agreed upon by the board and the Director of the Employment Development Department. Upon receipt of the notification from the board, the department shall post on its Internet Web site a notice stating that this section shall become operative, and the date that it will first be operative (g) If the department participates in the implementation and administration of the program, it may charge the board a reasonable fee for costs it incurs for implementing and administering the program.

Section 3. Section 1095 of Unemployment Insurance Code Is amended to read:

1095. The director shall permit the use of any information in his or her possession to the extent necessary for any of the following purposes and may reguire reimbursement for all direct costs incurred in providing any and all information specified in this section, except information specified in subdivisions (a) to (e), inclusive: (a) To enable the director or his or her representative to carry out his or her responsibilities under this code. (b) To properly present a claim for benefits. (c) To acguaint a worker or his or her authorized agent with his or her existing or prospective right to benefits. (d) To furnish an employer or his or her authorized agent with information to enable him or her to fully discharge his or her obligations or safeguard his or her rights under this division or Division 3 (commencing with Section 9000). (e) To enable an employer to receive a reduction in contribution rate. (f) To enable federal, state, or local governmental departments or agencies, subject to federal law, to verify or determine the eligibility or entitlement of an applicant for, or a recipient of, public social services provided pursuant to Division 9 (commencing with Section 10000) of the Welfare and Institutions Code, or Part A of Subchapter IV of the federal Social Security Act (42 U.S.C.


Sec. 601 et seq.), when the verification or determination is directly connected with, and limited to, the administration of public social services. (g) To enable county administrators of general relief or assistance, or their representatives, to determine entitlement to locally provided general relief or assistance, when the determination is directly connected with, and limited to, the administration of general relief or assistance. (h) To enable state or local governmental departments or agencies to seek criminal, civil, or administrative remedies in connection with the unlawful application for, or receipt of, relief provided under Division 9 (commencing with Section 10000) of the Welfare and Institutions Code or to enable the collection of expenditures for medical assistance services pursuant to Part 5 (commencing with Section 17000) of Division 9 of the Welfare and Institutions Code. (i) To provide any law enforcement agency with the name, address, telephone number, birth date, social security number, physical description, and names and addresses of present and past employers, of any victim, suspect, missing person, potential witness, or person for whom a felony arrest warrant has been issued, when a request for this information is made by any investigator or peace officer as defined by Sections 830.1 and 830.2 of the Penal Code, or by any federal law enforcement officer to whom the Attorney General has delegated authority to enforce federal search warrants, as defined under Sections 60.2 and 60.3 of Title 28 of the Code of Federal Regulations, as amended, and when the requesting officer has been designated by the head of the law enforcement agency and requests this information in the course of and as a part of an investigation into the commission of a crime when there is a reasonable suspicion that the crime is a felony and that the information would lead to relevant evidence. The information provided pursuant to this subdivision shall be provided to the extent permitted by federal law and regulations, and to the extent the information is available and accessible within the constraints and configurations of existing department records. Any person who receives any information under this subdivision shall make a written report of the information to the law enforcement agency that employs him or her, for filing under the normal procedures of that agency. (1) This subdivision shall not be construed to authorize the release to any law enforcement agency of a general list identifying individuals applying for or receiving benefits. (2) The department shall maintain records pursuant to this subdivision only for periods required under regulations or statutes enacted for the administration of its programs. (3) This subdivision shall not be construed as limiting the information provided to law enforcement agencies to that pertaining only to applicants for, or recipients of, benefits. (4) The department shall notify all applicants for benefits that release of confidential information from their records will not be protected should there be a felony arrest warrant issued against the applicant or in the event of an investigation by a law enforcement agency into the commission of a felony. G ) To provide public employee retirement systems in California with information relating to the earnings of any person who has applied for or is receiving a disability income, disability allowance, or disability retirement allowance, from a public employee retirement system. The earnings information shall be released only upon written request from the governing board specifying that the person has applied for or is receiving a disability allowance or disability retirement allowance from its retirement system. The request may be made by the chief executive officer of the system or by an employee of the system so authorized and identified by name and title by the chief executive officer in writing. (k) To enable the Division of Labor Standards Enforcement in the Department of Industrial Relations to seek criminal, civil, or administrative remedies in connection with the failure to pay, or the unlawful payment of, wages pursuant to Chapter 1 (commencing with Section 200) of


Part 1 of Division 2 of, and Chapter 1 (commencing with Section 1720) of Part 7 of Division 2 of, the Labor Code. (I) To enable federal, state, or local governmental departments or agencies to administer child support enforcement programs under Part D of Title IV of the federal Social Security Act (42 U.S.C. Sec. 651 et seq.). (m) To provide federal, state, or local governmental departments or agencies with wage and claim information in its possession that will assist those departments and agencies in the administration of the Victims of Crime Program or in the location of victims of crime who, by state mandate or court order, are entitled to restitution that has been or can be recovered, (n) To provide federal, state, or local governmental departments or agencies with information concerning any individuals who are or have been: (1) Directed by state mandate or court order to pay restitution, fines, penalties, assessments, or fees as a result of a violation of law. (2) Delinquent or in default on guaranteed student loans or who owe repayment of funds received through other financial assistance programs administered by those agencies. The information released by the director for the purposes of this paragraph shall not include unemployment insurance benefit information. (o) To provide an authorized governmental agency with any and all relevant information that relates to any specific workers' compensation insurance fraud investigation. The information shall be provided to the extent permitted by federal law and regulations. For the purposes of this subdivision, "authorized governmental agency" means the district attorney of any county, the office of the Attorney General, the Contractors' State License Board, the Department of Industrial Relations, and the Department of Insurance. An authorized governmental agency may disclose this information to the State Bar of California, the Medical Board of California, or any other licensing board or department whose licensee is the subject of a workers' compensation insurance fraud investigation. This subdivision shall not prevent any authorized governmental agency from reporting to any board or department the suspected misconduct of any licensee of that body. (p) To enable the Director of Consumer Affairs, or his or her representatives, to access unemployment insurance quarterly wage data on a case-by-case basis to verify information on school administrators, school staff, and students provided by those schools who are being investigated for possible violations of Chapter 8 (commencing with Section 94800) of Part 59 of Division 10 of Title 3 of the Education Code. (q) To provide employment tax information to the tax officials of Mexico, if a reciprocal agreement exists. For purposes of this subdivision, "reciprocal agreement" means a formal agreement to exchange information between national taxing officials of Mexico and taxing authorities of the State Board of Equalization, the Franchise Tax Board, and the Employment Development Department. Furthermore, the reciprocal agreement shall be limited to the exchange of information that is essential for tax administration purposes only. Taxing authorities of the State of California shall be granted tax information only on California residents. Taxing authorities of Mexico shall be granted tax information only on Mexican nationals, (r) To enable city and county planning agencies to develop economic forecasts for planning purposes. The information shall be limited to businesses within the jurisdiction of the city or county whose planning agency is requesting the information, and shall not include information regarding individual employees. (s) To provide the State Department of Developmental Services with wage and employer information that will assist in the collection of moneys owed by the recipient, parent, or any other legally liable individual for services and supports provided pursuant to Chapter 9 (commencing


with Section 4775) of Division 4.5 of, and Chapter 2 (commencing with Section 7200) and Chapter 3 (commencing with Section 7500) of Division 7 of, the Welfare and Institutions Code, (t) To provide the State Board of Equalization with employment tax information that will assist in the administration of tax programs. The information shall be limited to the exchange of employment tax information essential for tax administration purposes to the extent permitted by federal law and regulations. (u) This section shall not be construed to authorize or permit the use of information obtained in the administration of this code by any private collection agency. (v) The disclosure of the name and address of an individual or business entity that was issued an assessment that included penalties under Section 1128 or 1128.1 shall not be in violation of Section 1094 if the assessment is final. The disclosure may also include any of the following: (1) The total amount of the assessment. (2) The amount of the penalty imposed under Section 1128 or 1128.1 that is included in the assessment. (3) The facts that resulted in the charging of the penalty under Section 1128 or 1128.1. (w) To enable the Contractors' State License Board to verify the employment history of an individual applying for licensure pursuant to Section 7068 of the Business and Professions Code. (x) To provide any peace officer with the Division of Investigation in the Department of Consumer Affairs information pursuant to subdivision (i) when the requesting peace officer has been designated by the chief of the Division of Investigation and requests this information in the course of and as part of an investigation into the commission of a crime or other unlawful act when there is reasonable suspicion to believe that the crime or act may be connected to the information requested and would lead to relevant information regarding the crime or unlawful act. (y) To enable the Labor Commissioner of the Division of Labor Standards Enforcement in the Department of Industrial Relations to identify, pursuant to Section 90.3 of the Labor Code, unlawfully uninsured employers. The information shall be provided to the extent permitted by federal law and regulations. (z) To enable the Chancellor of the California Community Colleges, in accordance with the requirements of Section 84754.5 of the Education Code, to obtain quarterly wage data, commencing January 1, 1993, on students who have attended one or more community colleges, to assess the impact of education on the employment and earnings of students, to conduct the annual evaluation of district-level and individual college performance in achieving priority educational outcomes, and to submit the required reports to the Legislature and the Governor. The information shall be provided to the extent permitted by federal statutes and regulations. (aa) To enable the Public Employees' Retirement System to seek criminal, civil, or administrative remedies in connection with the unlawful application for, or receipt of, benefits provided under Part 3 (commencing with Section 20000) of Division 5 of Title 2 of the Government Code. (ab) To enable the State Department of Education, the University of California, the California State University, and the Chancellor of the California Community Colleges, pursuant to the requirements prescribed by the federal American Recovery and Reinvestment Act of 2009 (Public Law 111-5), to obtain quarterly wage data, commencing July 1, 2010, on students who have attended their respective systems to assess the impact of education on the employment and earnings of those students, to conduct the annual analysis of district-level and individual district or postsecondary education system performance in achieving priority educational


outcomes, and to submit the required reports to the Legislature and the Governor. The information shall be provided to the extent permitted by federal statutes and regulations. (ac) To provide the Agricultural Labor Relations Board with employee, wage, and employer information, for use in the investigation or enforcement of the Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations Act of 1975 (Part 3.5 (commencing with Section 1140) of Division 2 of the Labor Code). The information shall be provided to the extent permitted by federal statutes and regulations. (ad) (1) To enable the State Department of Health Care Services, the California Health Benefit Exchange, the Managed Risk Medical Insurance Board, and county departments and agencies to obtain information regarding employee wages, California employer names and account numbers, employer reports of wages and number of employees, and disability insurance and unemployment insurance claim information, for the purpose of: (A) Verifying or determining the eligibility of an applicant for, or a recipient of, state health subsidy programs, limited to the Medi-Cal program, provided pursuant to Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and Institutions Code, and the Access for Infants and Mothers Program, provided pursuant to Part 6.3 (commencing with Section 12695) of Division 2 of the Insurance Code, when the verification or determination is directly connected with, and limited to, the administration of the state health subsidy programs referenced in this subparagraph. (B) Verifying or determining the eligibility of an applicant for, or a recipient of, federal subsidies offered through the California Health Benefit Exchange, provided pursuant to Title 22 (commencing with Section 100500) of the Government Code, including federal tax credits and cost-sharing assistance pursuant to the federal Patient Protection and Affordable Care Act (Public Law 111-148), as amended by the federal Health Care and Education Reconciliation Act of 2010 (Public Law 111-152), when the verification or determination is directly connected with, and limited to, the administration of the California Health Benefit Exchange. (C) Verifying or determining the eligibility of employees and employers for health coverage through the Small Business Health Options Program, provided pursuant to Section 100502 of the Government Code, when the verification or determination is directly connected with, and limited to, the administration of the Small Business Health Options Program. (2) The information provided under this subdivision shall be subject to the requirements of, and provided to the extent permitted by, federal law and regulations, including Part 603 of Title 20 of the Code of Federal Regulations. (ae) To provide any peace officer with the Investigations Division of the Department of Motor Vehicles with information pursuant to subdivision (i), when the requesting peace officer has been designated by the Chief of the Investigations Division and requests this information in the course of, and as part of, an investigation into identity theft, counterfeiting, document fraud, or consumer fraud, and there is reasonable suspicion that the crime is a felony and that the information would lead to relevant evidence regarding the identity theft, counterfeiting, document fraud, or consumer fraud. The information provided pursuant to this subdivision shall be provided to the extent permitted by federal law and regulations, and to the extent the information is available and accessible within the constraints and configurations of existing department records. Any person who receives any information under this subdivision shall make a written report of the information to the Investigations Division of the Department of Motor Vehicles, for filing under the normal procedures of that division. (af) Until January 1, 2020, to enable the Department of Finance to prepare and submit the report required by Section 13084 of the Government Code that identifies all employers in California that employ 100 or more employees who receive benefits from the Medi-Cal program (Chapter 7 (commencing with Section 14000) of Part 3 of Division 9 of the Welfare and


Institutions Code). The information used for this purpose shall be limited to information obtained pursuant to Section 11026.5 of the Welfare and Institutions Code and from the administration of personal income tax wage withholding pursuant to Division 6 (commencing with Section 13000) and the disability insurance program and may be disclosed to the Department of Finance only for the purpose of preparing and submitting the report and only to the extent not prohibited by federal law. (ag) To provide, to the extent permitted by federal law and regulations, the Student Aid Commission with wage information in order to verify the employment status of an individual applying for a Cal Grant C award pursuant to subdivision (c) of Section 69439 of the Education Code. (ah) To enable the Department of Corrections and Rehabilitation to obtain quarterly wage data of former inmates who have been incarcerated within the prison system in order to assess the impact of rehabilitation services or the lack of these services on the employment and earnings of these former inmates. Quarterly data for a former inmate's employment status and wage history shall be provided for a period of one year, three years, and five years following release. The data shall only be used for the purpose of tracking outcomes for former inmates in order to assess the effectiveness of rehabilitation strategies on the wages and employment histories of those formerly incarcerated. The information shall be provided to the department to the extent not prohibited by federal law. (ai) To enable federal, state, or local government departments or agencies, or their contracted agencies, subject to federal law, including the confidentiality, disclosure, and other requirements set forth in Part 603 of Title 20 of the Code of Federal Regulations, to evaluate, research, or forecast the effectiveness of public social services programs administered pursuant to Division 9 (commencing with Section 10000) of the Welfare and Institutions Code, or Part A of Subchapter IV of Chapter 7 of the federal Social Security Act (42 U.S.C. Sec. 601 et seq.), when the evaluation, research, or forecast is directly connected with, and limited to, the administration of the public social services programs. (aj) To enable the California Workforce Development Board, the Chancellor of the California Community Colleges, the Superintendent of Public Instruction, the Department of Rehabilitation, the State Department of Social Services, the Bureau for Private Postsecondary Education, the Department of Industrial Relations, the Division of Apprenticeship Standards, and the Employment Training Panel to access any relevant quarterly wage data necessary for the evaluation and reporting of their respective program performance outcomes as required and permitted by various state and federal laws pertaining to performance measurement and program evaluation under the federal Workforce Innovation and Opportunity Act (Public Law 113-128); the workforce performance metrics dashboard pursuant to paragraph (1) of subdivision (i) of Section 14013; the Adult Education Block Grant Program consortia performance metrics pursuant to Section 84920 of the Education Code; the economic and workforce development program performance measures pursuant to Section 88650 of the Education Code; and the California Community Colleges Economic and Workforce Development Program performance measures established in Part 52.5 (commencing with Section 88600) of Division 7 of Title 3 of the Education Code. (ak) (1) To provide any peace officer with the Enforcement Branch of the Department of Insurance with both of the following: (A) Information provided pursuant to subdivision (i) that relates to a specific insurance fraud investigation involving automobile insurance fraud, life insurance and annuity fraud, property and casualty insurance fraud, and organized automobile insurance fraud. That information shall be provided when the requesting peace officer has been designated by the Chief of the Fraud Division of the Department of Insurance and requests the information in the course of, and as


part of, an investigation into the commission of a crime or other unlawful act when there is reasonable suspicion to believe that the crime or act may be connected to the information requested and would lead to relevant information regarding the crime or unlawful act. (B) Employee, wage, employer, and state disability insurance claim information that relates to a specific insurance fraud investigation involving health or disability insurance fraud when the requesting peace officer has been designated by the Chief of the Fraud Division of the Department of Insurance and requests the information in the course of, and as part of, an investigation into the commission of a crime or other unlawful act when there is reasonable suspicion to believe that the crime or act may be connected to the information requested and would lead to relevant information regarding the crime or unlawful act. (2) To enable the State Department of Developmental Services to obtain quarterly wage data of consumers served by that department for the purposes of monitoring and evaluating employment outcomes to determine the effectiveness of the Employment First Policy, established pursuant to Section 4869 of the Welfare and Institutions Code. (3) The information provided pursuant to this subdivision shall be provided to the extent permitted by federal statutes and regulations. (al) To provide the California Secure Choice Retirement Savings Investment Board with emplover tax information for use in the administration of. and to facilitate compliance with, the California Secure Choice Retirement Savings Trust Act (Title 21 of the Government Code). The information shall be limited to the tax information the director deems appropriate and shall be provided to the extent permitted by federal law and regulations.

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