Bill Text: CA AB127 | 2015-2016 | Regular Session | Amended


Bill Title: State government.

Spectrum: Partisan Bill (Democrat 16-0)

Status: (Engrossed - Dead) 2016-11-30 - Died on Senate inactive file. [AB127 Detail]

Download: California-2015-AB127-Amended.html
BILL NUMBER: AB 127	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 24, 2015

INTRODUCED BY   Committee on Budget (Weber (Chair), Bloom, Bonta,
Campos, Chiu, Cooper, Gordon, Jones-Sawyer, McCarty, Mullin,
Nazarian, O'Donnell, Rodriguez, Thurmond, Ting, and Williams)

                        JANUARY 9, 2015

    An act relating to the Budget Act of 2015.  
An act to amend Sections 11555, 11556, 11565.5, 19825.5, 22866, and
100505 of the Government Code, to amend Section 1233.10 of the Penal
Code, and to amend Sections 17138.3 and 24308.7 of the Revenue and
Taxation Code, relating to state government, and making an
appropriation therefor, to take effect immediately, bill related to
the budget. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 127, as amended, Committee on Budget.  Budget Act of
2015.   State government.  
   (1) Existing law provides for the salaries of the chairperson and
commissioners of the Board of Parole Hearings and the chairperson and
members of the Occupational Safety and Health Appeals Board, and
limits increases to those salaries by, among other restrictions,
prohibiting a salary increase exceeding the percentage of the general
increase in the salary rates and ranges for classifications provided
during that fiscal year for state employees designated as
managerial.  
   This bill would instead authorize the Department of Human
Resources to set and adjust, as needed, the annual compensation of
these state officers based on specified factors. The bill would
prohibit compensation for these state officers from exceeding 125% of
the compensation recommended to be paid to the Governor by the
California Citizens Compensation Commission, and would require the
department to notify the Legislature of the compensation level
implemented within 30 days of the effective date of the proposed
compensation adjustment.  
   (2) The Public Employees' Medical and Hospital Care Act requires,
among other things, the Board of Administration of the Public
Employees' Retirement System to report to the Legislature and the
Director of Finance, on November 1, 2015, and annually thereafter, on
specific components of the health benefits program.  
   This bill would remove the requirement for the board to report on
November 1, 2015, and instead require the board to report beginning
on November 1, 2016, and annually thereafter.  
   (3) Existing law established the California Health Benefit
Exchange to be governed by an executive board consisting of 5 members
who are residents of California. Existing law requires the board to
establish and use a competitive process to select participating
carriers and any other contractors, and exempts any contract entered
into pursuant to these provisions from the State Contract Act. 

   This bill would make a nonsubstantive change to this provision.
 
   (4) Existing law requires a county board of supervisors, upon an
agreement to accept specified funding, to develop and administer a
competitive grant program in collaboration with the county's
Community Corrections Partnership to fund community recidivism and
crime reduction services. Existing law allocates funding to counties
from the Budget Act of 2015 pursuant to a specified allocation
schedule for this purpose and requires the board of supervisors to
grant the funds to community recidivism and crime reduction service
providers, as defined. Based on the population of the county,
existing law limits the maximum amount of funds that may be awarded
to a service provider to between $10,000 and $100,000, and further
limits the total amount of grants that may be awarded to a single
provider by all counties to $100,000. 
   This bill would make the above-specified limitation on the maximum
amount that may be awarded to a service provider applicable to each
Budget Act allocation.  
   (5) The Personal Income Tax Law and the Corporation Tax Law
provide for various exclusions from the calculation of gross income
in determining tax liability, and specifically exclude from that
calculation, for taxable years beginning on or after July 1, 2015, an
amount received as a loan, loan forgiveness, grant, credit, rebate,
voucher, or incentive from the California Residential Mitigation
Program or the California Earthquake Authority relating to earthquake
loss mitigation. These existing laws define "earthquake loss
mitigation" as an activity that reduces seismic risks to a
residential structure or its contents, or both, and define a
"residential structure" by reference to another law, relating to
policies of residential property insurance.  
   This bill would remove the reference to a loan from the listing of
excluded items, and revise the definition of "residential structure"
to also include a residential building of not fewer than 2, but not
more than 10, dwelling units.  
   (6) The bill would make an appropriation from the State Department
of Public Health Licensing and Certification Program Fund of
$400,000 to the Long-Term Care Ombudsman Program for the purposes of
Program 3900-Supportive Services, as specified in the Budget Act of
2015.  
   (7) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.
 
   This bill would express the intent of the Legislature to enact
statutory changes relating to the Budget Act of 2015. 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee:  no   yes  .
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 11555 of the  
Government Code   is amended to read: 
   11555.  (a) Effective January 1, 1988, an annual salary of
seventy-one thousand five hundred eighty-seven dollars ($71,587)
shall be paid to the following:
   (1) Chairperson of the Board of Parole Hearings.
   (2) Chairperson of the Occupational Safety and Health Appeals
Board.
   (b) The annual compensation provided by this section shall be
increased in any fiscal year in which a general salary increase is
provided for state employees. The amount of the increase provided by
this section shall be comparable to, but shall not exceed, the
percentage of the general salary increases provided for state
employees during that fiscal year.
   (c) Notwithstanding subdivision (b), any salary increase is
subject to Section  11565.5.   19825.5. 
   SEC. 2.    Section 11556 of the   Government
Code   is amended to read: 
   11556.  (a) Effective January 1, 1988, an annual salary of
sixty-nine thousand seventy-six dollars ($69,076) shall be paid to
each of the following:
   (1) Commissioner of the Board of Parole Hearings.
   (2) Member of the Occupational Safety and Health Appeals Board.
   (b) The annual compensation provided by this section shall be
increased in any fiscal year in which a general salary increase is
provided for state employees. The amount of the increase provided by
this section shall be comparable to, but shall not exceed, the
percentage of the general salary increases provided for state
employees during that fiscal year.
   (c) Notwithstanding subdivision (b), any salary increase is
subject to Section  11565.5.   19825.5. 
   SEC. 3.    Section 11565.5 of the  
Government Code   is amended to read: 
   11565.5.  Notwithstanding Sections 11553, 11553.5,  11555,
11556,  11563.7, and 11564, with respect to any salary
increase made after January 1, 1997, for nonelected members of state
boards and commissions specified in Sections 11553, 11553.5, 
11555, 11556,  11563.7, and 11564, the annual compensation
provided by these sections shall not automatically increase but may
be increased in any fiscal year in which there is a general increase
in the salary ranges and rates for state civil service
classifications. The amount of the increase, as determined by the
Department of Human Resources and subject to the appropriation of
funds by the Legislature in the annual Budget Act, shall not exceed
the percentage of the general increase in the salary rates and ranges
for classifications provided during that fiscal year for state
employees designated as managerial.
   SEC. 4.    Section 19825.5 of the  
Government Code   is amended to read: 
   19825.5.  (a) Notwithstanding Sections 11550, 11552,  11554,
11555,  and  11554,   11556,  the
department shall set and adjust, as needed, the annual compensation
of the officers and employees listed in Sections 11550, 11552, 
11554, 11555,  and  11554.   11556. 
   (b) When setting or adjusting the annual compensation of the
employees described in subdivision (a), the department shall consider
the size and scope of the organization, compensation paid to other
similar positions in other public jurisdictions, the scope of
responsibility of the position, the need to avoid salary compaction,
and other factors appropriate to the determination of compensation
necessary to recruit and retain qualified employees in leadership
positions for the state. The compensation shall not exceed 125
percent of the compensation recommended to be paid to the Governor of
the State of California by the California Citizens Compensation
Commission.
   (c) The department shall notify the Legislature of the
compensation level implemented for any of the employees described in
subdivision (a) within 30 days of the effective date of the proposed
compensation adjustment.
   SEC. 5.    Section 22866 of the   Government
Code   is amended to read: 
   22866.  (a) The board shall report to the Legislature and the
Director of Finance  annually,  on  or before
 November 1,  2016, and annually thereafter,  regarding
the health benefits program. The report shall include, but not be
limited to the following:
   (1) General overview of the health benefits program, including,
but not limited to, the following:
   (A) Description of health plans and benefits provided, including
essential and nonessential benefits as required by state and federal
law, member expected out-of-pocket expenses, and actuarial value by
metal tier as defined by the federal Patient Protection and
Affordable Care Act (Public Law 111-148), as amended by the federal
Health Care and Education Reconciliation Act of 2010 (Public Law
111-152).
   (B) Geographic coverage.
   (C) Historic enrollment information by basic and Medicare plans,
by state and contract agencies, by active and retired membership, and
by subscriber and dependent tier.
   (D) Historic expenditures by basic and Medicare plans, by state
and contract agencies, by active and retired membership, and by
subscriber and dependent tier.
   (2) Reconciliation of premium increases or decreases from the
prior plan year, and the reasons for those changes.
   (A) Description of benefit design and benefit changes, including
prescription drug coverage, by plan. The description shall detail
whether benefit changes were required by statutory mandate, federal
law, or an exercise of the board's discretion, the costs or savings
of the benefit change, and the impact of how the changes fit into a
broader strategy.
   (B) Discussion of risk.
   (C) Description of medical trend changes in aggregate service
categories for each plan. The aggregate service categories used shall
include the standard categories of information collected by the
board, consisting of the following: inpatient, emergency room,
ambulatory surgery, office, ambulatory radiology, ambulatory lab,
mental health and substance abuse, other professional, prescriptions,
and all other service categories.
   (D) Reconciliation of past year premiums against actual
enrollments, revenues, and accounts receivables.
   (3) Overall member health as reflected by data on chronic
conditions.
   (4) The impact of federal subsidies or contributions to the health
care of members, including Medicare Part A, Part B, Part C, or Part
D, low-income subsidies, or other federal program.
   (5) The cost of benefits beyond Medicare contained in the board's
Medicare supplemental plans.
   (6) A description of plan quality performance and member
satisfaction, including, but not limited to, the following:
   (A) The Healthcare Effectiveness Data and Information Set,
referred to as HEDIS.
   (B) The Medicare star rating for Medicare supplemental plans.
   (C) The degree of satisfaction of members and annuitants with the
health benefit plans and with the quality of the care provided, to
the extent the board surveys participants.
   (D) The level of accessibility to preferred providers for rural
members who do not have access to health maintenance organizations.
   (E) Other applicable quality measurements collected by the board
as part of the board's health plan contracts.
   (7) A description of risk assessment and risk mitigation policy
related to the board's self-funded and flex-funded plan offerings,
including, but not limited to the following:
   (A) Reserve levels and their adequacy to mitigate plan risk.
   (B) The expected change in reserve levels and the factors leading
to this change.
   (C) Policies to reduce excess reserves or rebuild inadequate
reserves.
   (D) Decisions to lower premiums with excess reserves.
   (E) The use of reinsurance and other alternatives to maintaining
reserves.
   (8) Description and reconciliation of administrative expenditures,
including, but not limited to, the following:
   (A) Organization and staffing levels, including salaries, wages,
and benefits.
   (B) Operating expenses and equipment expenditure items, including,
but not limited to, internal and external consulting and
intradepartmental transfers.
   (C) Funding sources.
   (D) Investment strategies, historic investment performance, and
expected investment returns of the Public Employees' Contingency
Reserve Fund and the Public Employees' Health Care Fund.
   (9) Changes in strategic direction and major policy initiatives.
   (b) A report submitted pursuant to subdivision (a) shall be
provided in compliance with Section 9795.
   SEC. 6.    Section 100505 of the  
Government Code   is amended to read: 
   100505.  (a) The board shall establish and use a competitive
process to select participating carriers and any other contractors
under this title. Any contract entered into pursuant to this title
shall be exempt from  Chapter 1   Part 2 
(commencing with Section 10100) of  Part 2 of 
Division 2 of the Public Contract Code, and shall be exempt from the
review or approval of any division of the Department of General
Services. The board shall adopt a Health Benefit Exchange Contracting
Manual incorporating procurement and contracting policies and
procedures that shall be followed by the Exchange. The policies and
procedures in the manual shall be substantially similar to the
provisions contained in the State Contracting Manual.
   (b) The adoption, amendment, or repeal of a regulation by the
board to implement this section, including the adoption of a manual
pursuant to subdivision (a) and any procurement process conducted by
the Exchange in accordance with the manual, is exempt from the
rulemaking provisions of the Administrative Procedure Act (Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2).
   SEC. 7.    Section 1233.10 of the   Penal
Code   is amended to read: 
   1233.10.  (a) Upon agreement to accept funding from the Recidivism
Reduction Fund, created in Section 1233.9, a county board of
supervisors, in collaboration with the county's Community Corrections
Partnership, shall develop, administer, and collect and submit data
to the Board of State and Community Corrections regarding a
competitive grant program intended to fund community recidivism and
crime reduction services, including, but not limited to, delinquency
prevention, homelessness prevention, and reentry services.
   (1) Commencing with the 2014-15 fiscal year, the funding shall be
allocated to counties by the State Controller's Office from Item
5227-101-3259 of Section 2.00 of the Budget Act of 2014 according to
the following schedule:
Alameda                  $  250,000
Alpine                   $   10,000
Amador                   $   10,000
Butte                    $   50,000
Calaveras                $   10,000
Colusa                   $   10,000
Contra Costa             $  250,000
Del Norte                $   10,000
El Dorado                $   50,000
Fresno                   $  250,000
Glenn                    $   10,000
Humboldt                 $   50,000
Imperial                 $   50,000
Inyo                     $   10,000
Kern                     $  250,000
Kings                    $   50,000
Lake                     $   25,000
Lassen                   $   10,000
Los Angeles              $1,600,000
Madera                   $   50,000
Marin                    $   50,000
Mariposa                 $   10,000
Mendocino                $   25,000
Merced                   $   50,000
Modoc                    $   10,000
Mono                     $   10,000
Monterey                 $  100,000
Napa                     $   50,000
Nevada                   $   25,000
Orange                   $  500,000
Placer                   $   50,000
Plumas                   $   10,000
Riverside                $  500,000
Sacramento               $  250,000
San Benito               $   25,000
San Bernardino           $  500,000
San Diego                $  500,000
San Francisco            $  250,000
San Joaquin              $  250,000
San Luis Obispo          $   50,000
San Mateo                $  250,000
Santa Barbara            $  100,000
Santa Clara              $  500,000
Santa Cruz               $   50,000
Shasta                   $   50,000
Sierra                   $   10,000
Siskiyou                 $   10,000
Solano                   $  100,000
Sonoma                   $  100,000
Stanislaus               $  100,000
Sutter                   $   25,000
Tehama                   $   25,000
Trinity                  $   10,000
Tulare                   $  100,000
Tuolumne                 $   25,000
Ventura                  $  250,000
Yolo                     $   50,000
Yuba                     $   25,000


   (2) Commencing with the 2015-16 fiscal year, the funding shall be
allocated to counties by the State Controller's Office from Item
5227-101-3259 of Section 2.00 of the Budget Act of 2015 according to
the following schedule:
Alameda                  $  125,000
Alpine                   $    5,000
Amador                   $    5,000
Butte                    $   25,000
Calaveras                $    5,000
Colusa                   $    5,000
Contra Costa             $  125,000
Del Norte                $    5,000
El       Dorado          $   25,000
Fresno                   $  125,000
Glenn                    $    5,000
Humboldt                 $   25,000
Imperial                 $   25,000
Inyo                     $    5,000
Kern                     $  125,000
Kings                    $   25,000
Lake                     $   12,500
Lassen                   $    5,000
Los Angeles              $  800,000
Madera                   $   25,000
Marin                    $   25,000
Mariposa                 $    5,000
Mendocino                $   12,500
Merced                   $   25,000
Modoc                    $    5,000
Mono                     $    5,000
Monterey                 $   50,000
Napa                     $   25,000
Nevada                   $   12,500
Orange                   $  250,000
Placer                   $   25,000
Plumas                   $    5,000
Riverside                $  250,000
Sacramento               $  125,000
San Benito               $   12,500
San Bernardino           $  250,000
San Diego                $  250,000
San Francisco            $  125,000
San Joaquin              $  125,000
San Luis Obispo          $   25,000
San Mateo                $  125,000
Santa Barbara            $   50,000
Santa Clara              $  250,000
Santa Cruz               $   25,000
Shasta                   $   25,000
Sierra                   $    5,000
Siskiyou                 $    5,000
Solano                   $   50,000
Sonoma                   $   50,000
Stanislaus               $   50,000
Sutter                   $   12,500
Tehama                   $   12,500
Trinity                  $    5,000
Tulare                   $   50,000
Tuolumne                 $   12,500
Ventura                  $  125,000
Yolo                     $   25,000
Yuba                     $   12,500


   (b) For purposes of this section, "community recidivism and crime
reduction service provider" means a nongovernmental entity or a
consortium or coalition of nongovernmental entities, that provides
community recidivism and crime reduction services, as described in
paragraph (2) of subdivision (c), to persons who have been released
from the state prison, a county jail, a juvenile detention facility,
who are under the supervision of a parole or probation department, or
any other person at risk of becoming involved in criminal
activities.
   (c) (1) A community recidivism and crime reduction service
provider shall have a demonstrated history of providing services, as
described in paragraph (2), to the target population during the five
years immediately prior to the application for a grant awarded
pursuant to this section.
   (2) A community recidivism and crime reduction service provider
shall provide services that are designed to enable persons to whom
the services are provided to refrain from engaging in crime,
reconnect with their family members, and contribute to their
communities. Community recidivism and crime reduction services may
include all of the following:
   (A) Self-help groups.
   (B) Individual or group assistance with basic life skills.
   (C) Mentoring programs.
   (D) Academic and educational services, including, but not limited
to, services to enable the recipient to earn his or her high school
diploma.
   (E) Job training skills and employment.
   (F) Truancy prevention programs.
   (G) Literacy programs.
   (H) Any other service that advances community recidivism and crime
reduction efforts, as identified by the county board of supervisors
and the Community Corrections Partnership.
   (I) Individual or group assistance with referrals for any of the
following:
   (i) Mental and physical health assessments.
   (ii) Counseling services.
   (iii) Education and vocational programs.
   (iv) Employment opportunities.
   (v) Alcohol and drug treatment.
   (vi) Health, wellness, fitness, and nutrition programs and
services.
   (vii) Personal finance and consumer skills programs and services.
   (viii) Other personal growth and development programs to reduce
recidivism.
   (ix) Housing assistance.
   (d) Pursuant to this section and upon agreement to accept funding
from the Recidivism Reduction Fund, the board of supervisors, in
collaboration with the county's Community Corrections Partnership,
shall grant funds allocated to the county, as described in
subdivision (a), to community recidivism and crime reduction service
providers based on the needs of their community.
   (e) (1) The amount awarded to each community recidivism and crime
reduction service provider by a county shall be based on the
population of the county, as projected by the Department of Finance,
and shall not exceed the  following:   following
for each Budget Act allocation: 
   (A) One hundred thousand dollars ($100,000) in a county with a
population of over 4,000,000 people.
   (B) Fifty thousand dollars ($50,000) in a county with a population
of 700,000 or more people but less than 4,000,000 people.
   (C) Twenty five thousand dollars ($25,000) in a county with a
population of 400,000 or more people but less than 700,000 people.
   (D) Ten thousand dollars ($10,000) in a county with a population
of less than 400,000 people.
   (2) The total amount of grants awarded to a single community
recidivism and crime reduction service provider by all counties
pursuant to this section shall not exceed one hundred thousand
dollars  ($100,000).   ($100,000) per Budget Act
allocation. 
   (f) The board of supervisors, in collaboration with the county's
Community Corrections Partnership, shall establish minimum
requirements, funding criteria, and procedures for the counties to
award grants consistent with the criteria established in this
section.
   (g) A community recidivism and crime reduction service provider
that receives a grant under this section shall report to the county
board of supervisors or the Community Corrections Partnership on the
number of individuals served and the types of services provided,
consistent with paragraph (2) of subdivision (c). The board of
supervisors or the Community Corrections Partnership shall report to
the Board of State and Community Corrections any information received
under this subdivision from grant recipients.
   (h) Of the total amount granted to a county, up to 5 percent may
be withheld by the board of supervisors or the Community Corrections
Partnership for the payment of administrative costs.
   (i) Any funds allocated to a county under this section shall be
available for expenditure for a period of four years and any
unexpended funds shall revert to the state General Fund at the end of
the four-year period.
  SEC. 8.    Section 17138.3 of the   Revenue
and Taxation Code   is amended to read: 
   17138.3.  (a) For each taxable year beginning on or after July 1,
2015, gross income does not include an amount received as a 
loan,  loan forgiveness, grant, credit, rebate, voucher, or
other financial incentive issued by the California Residential
Mitigation Program or the California Earthquake Authority to assist a
residential property owner or occupant with expenses paid, or
obligations incurred, for earthquake loss mitigation.
   (b) For the purposes of this section, "earthquake loss mitigation"
means an activity that reduces seismic risks to a residential
structure or its contents, or both. For purposes of structural
seismic risk mitigation, a residential structure is  a
structure described in subdivision (a)   either  of
 Section 10087 of  the  Insurance Code.
  following:  
   (1) A structure described in subdivision (a) of Section 10087 of
the Insurance Code.  
   (2) A residential building of not fewer than 2, but not more than
10, dwelling units. 
   SEC. 9.    Section 24308.7 of the   Revenue
and Taxation Code   is amended to read: 
   24308.7.  (a) For each taxable year beginning on or after July 1,
2015, gross income does not include an amount received as a 
loan,  loan forgiveness, grant, credit, rebate, voucher, or
other financial incentive issued by the California Residential
Mitigation Program or the California Earthquake Authority to assist a
residential property owner or occupant with expenses paid, or
obligations incurred, for earthquake loss mitigation.
   (b) For the purposes of this section, "earthquake loss mitigation"
means an activity that reduces seismic risks to a residential
structure or its contents, or both. For purposes of structural
seismic risk mitigation, a residential structure is  a
structure described in subdivision (a)   either  of
 Section 10087 of  the  Insurance Code.
  following:  
   (1) A structure described in subdivision (a) of Section 10087 of
the Insurance Code.  
   (2) A residential building of not fewer than 2, but not more than
10, dwelling units. 
   SEC. 10.    Item 4170-101-3098 is added to Section
2.00 of the Budget Act of 2015, and the amount of four hundred
thousand dollars ($400,000) is hereby appropriated from the State
Department of Public Health Licensing and Certification Program Fund
to this item for Program 3900-Supportive Services, for the Long-Term
Care Ombudsman Program. 
   SEC. 11.    This act is a bill providing for
appropriations related to the Budget Bill within the meaning of
subdivision (e) of Section 12 of Article IV of the California
Constitution, has been identified as related to the budget in the
Budget Bill, and shall take effect immediately.  
  SECTION 1.    It is the intent of the Legislature
to enact statutory changes relating to the Budget Act of 2015.
     
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